International Management Institute, Kolkata

Summer Internship report On

“Establishing a strong digital footprint”

A report submitted in partial Fulfillment of the requirements of the

PGDM program of IMI Kolkata

Mr Writparna Dutta,
Relationship Banking Head,
HDFC Salt Lake,
Sector 1 Branch
(Organisational Guide)

Submitted by,

Rohit Singh

IMI Kolkata
17PGDM115
INTRODUCTION

Banking is a highly information intensive activity that relies heavily

on information technology (IT) to acquire, process, and deliver the
information to all relevant customers. Banks used the Internet technology
as a strategic weapon to revolutionize the way they operate, deliver
and compete against each other. As a result, Online Banking was
introduced as a channel where bank customers could perform their financial
transactions electronically via their banks’ Web sites. An Online Banking user
is expected to perform at least one of the following transactions online:

1. Checking account balance and transaction history

2. Paying bills
3. Transferring funds between accounts
4. Requesting credit card advances
5. Ordering checks
6. Managing investments and stocks trading

From a Bank’s perspective, using the Internet is more efficient than using other
distribution mediums because banks are looking for an increased customer base.
Using multiple distribution channels increases effective market coverage by
enabling different products to be targeted at different demographic segment.
From the customers’ perspective, Online Banking provides a convenient and
effective way to manage finances that is easily accessible 24 hours a day, seven
days a week. In addition, information is up to date. Nevertheless Online
Banking has disadvantages for banks like how to work the technology,
set-up cost, legal issues, and lack of personal contact with customers. And
for customers there are security and privacy issues

HDFC Bank started its digital banking journey in 1999 with its Internet Banking
service. And in 2000 bank was first in its industry to launch SMS Banking.
After its success with internet banking and SMS banking HDFC Bank started
launching various mobile application from 2011 such as Chillr, Payzapp etc.
The main objective of the project is to know how the bank manages and deal
with its Digital products/services. Also, it will help me in understanding how many
customers are using digital banking and how many of them are aware of HDFC
banks digital services. This project will also help me in knowing for what purposes
the customers use the digital banking services. And it will help me in
understanding why some percentage of customer are still not using Digital banking
facilities and making them aware of all the digital products of the bank.
INDUSTRY OVERVIEW-

Banks-

A bank is a financial institution that accepts deposits from the public and
creates credit. Lending activities can be performed either directly or indirectly
through capital markets. Due to their importance in the financial stability of a
country, banks are highly regulated in most countries. Most nations have
institutionalized a system known as fractional reserve banking under which banks
hold liquid assets equal to only a portion of their current liabilities. In addition to
other regulations intended to ensure liquidity, banks are generally subject to
minimum capital requirements based on an international set of capital standards,
known as the Basel Accords.

Banking in India

Banking in India, in the modern sense, originated in the last decades of the 18th
century. Among the first banks were the Bank of Hindustan, which was established
in 1770 and liquidated in 1829–32; and the General Bank of India, established in
1786 but failed in 1791. The largest bank, and the oldest still in existence, is the
State Bank of India (S.B.I). It originated as the Bank of Calcutta in June 1806. In
1809, it was renamed as the Bank of Bengal. This was one of the three banks
funded by a presidency government, the other two were the Bank of Bombay and
the Bank of Madras. The three banks were merged in 1921 to form the Imperial
Bank of India, which upon India's independence, became the State Bank of
India in 1955. For many years the presidency banks had acted as quasi-central
banks, as did their successors, until the Reserve Bank of India was established in
1935, under the Reserve Bank of India Act, 1934.
In 1960, the State Banks of India was given control of eight state-associated banks
under the State Bank of India (Subsidiary Banks) Act, 1959. These are now called
its associate banks. In 1969 the Indian government nationalized 14 major private
banks. In 1980, 6 more private banks were nationalized. These nationalized banks
are the majority of lenders in the Indian economy. They dominate the banking
sector because of their large size and widespread networks.
The Indian banking sector is broadly classified into scheduled banks and non-
scheduled banks. The scheduled banks are those included under the 2nd Schedule
of the Reserve Bank of India Act, 1934. The scheduled banks are further classified
into: nationalized banks; State Bank of India and its associates; Regional Rural
Banks (RRBs); foreign banks; and other Indian private sector banks.The term
commercial banks refers to both scheduled and nonscheduled commercial banks
regulated under the Banking Regulation Act, 1949.

Generally banking in India is fairly mature in terms of supply, product range and
reach-even though reach in rural India and to the poor still remains a challenge.
The government has developed initiatives to address this through the State Bank of
India expanding its branch network and through the National Bank for Agriculture
and Rural Development (NABARD) with facilities like microfinance.

Post-Independence
The partition of India in 1947 adversely impacted the economies of Punjab and
West Bengal, paralyzing banking activities for months. India's independence
marked the end of a regime of the Laissez-faire for the Indian banking. The
Government of India initiated measures to play an active role in the economic life
of the nation, and the Industrial Policy Resolution adopted by the government in
1948 envisaged a mixed economy. This resulted in greater involvement
of the state in different segments of the economy including banking and finance.
The major steps to regulate banking included:
 The Reserve Bank of India, India's central banking authority, was
established in April 1935, but was nationalized on 1 January 1949 under the
terms of the Reserve Bank of India (Transfer to Public Ownership) Act,
1948 (RBI, 2005b).
 In 1949, the Banking Regulation Act was enacted, which empowered the
Reserve Bank of India (RBI) "...to regulate, control, and inspect the banks in
India."
 The Banking Regulation Act also provided that no new bank or branch of an
existing bank could be opened without a license from the RBI, and no two
banks could have common directors.

Nationalization in the 1960s-

Despite the provisions, control and regulations of the Reserve Bank of India, banks
in India except the State Bank of India (SBI), remain owned and operated by
private persons. By the 1960s, the Indian banking industry had become an
important tool to facilitate the development of the Indian economy. At the same
time, it had emerged as a large employer, and a debate had ensued about the
nationalized of the banking industry. Indira Gandhi, the then Prime Minister of
India, expressed the intention of the Government of India in the annual conference
of the All India Congress Meeting in a paper entitled "Stray thoughts on
Bank Nationalization." The meeting received the paper with enthusiasm.
Thereafter, her move was swift and sudden. The Government of India issued an
ordinance ('Banking Companies (Acquisition and Transfer of Undertakings)
Ordinance, 1969') And nationalized the 14 largest commercial banks with effect
from the midnight of 19 July, 1969. These banks contained 85 percent of bank
deposits in the country. Jayaprakash Narayan, a national leader of India, described
the step as a "masterstroke of political sagacity." Within two weeks of the issue of
the ordinance, the Parliament passed the Banking Companies (Acquisition and
Transfer of Undertaking) Bill, and it received the presidential approval on 9
August 1969. A second dose of nationalization of 6 more commercial banks
followed in 1980. The stated reason for the nationalization was to give the
government more control of credit delivery. With the second dose of
nationalization, the Government of India controlled around 91% of
the banking business of India. Later on, in the year 1993, the government merged
New Bank of India with Punjab National Bank. It was the only merger between
nationalized banks and resulted in the reduction of the number of nationalized
banks from 20 to 19. Until the 1990s, the nationalized banks grew at a pace of
around 4%, closer to the average growth rate of the Indian economy

Liberalization in the 1990s-

In the early 1990s, the then government embarked on a policy of liberalization,

licensing a small number of private banks. These came to be known as New
Generation tech-savvy banks and included Global Trust Bank (the first of such
new generation banks to be set up), which later amalgamated with Oriental Bank
of Commerce, UTI Bank (since renamed Axis Bank), ICICI Bank and HDFC
Bank. This move, along with the rapid growth in the economy of India, revitalized
the banking sector in India, which has seen rapid growth with strong contribution
from all the three sectors of banks, namely, government banks, private banks and
foreign banks.
The next stage for the Indian banking has been set up, with proposed relaxation of
norms for foreign direct investment. All foreign investors in banks may be given
voting rights that could exceed the present cap of 10% at present. It has gone up to
74% with some restrictions.

The new policy shook the Banking sector in India completely. Bankers, till this
time, were used to the 4–6–4 method (borrow at 4%; lend at 6%; go home at 4) of
functioning. The new wave ushered in a modern outlook and tech-savvy methods
of working for traditional banks. All this led to the retail boom in India. People
demanded more from their banks and received more.

Current Period-

The Indian banking sector is broadly classified into scheduled banks and
nonscheduled banks. All banks included in the Second Schedule to the Reserve
Bank of India Act, 1934 are Scheduled Banks. These banks comprise Scheduled
Commercial Banks and Scheduled Co-operative Banks. Scheduled Co-operative
Banks consist of Scheduled State Co-operative Banks and Scheduled Urban
Cooperative Banks. Scheduled Commercial Banks in India are categorized into
five different groups according to their ownership and/ or nature
of operation:
 State Bank of India and its Associates
 Nationalized Banks
 Private Sector Banks
 Foreign Banks
 Regional Rural Banks.
In the bank group-wise classification, IDBI Bank Ltd. is included in Nationalized
Banks. By 2010, banking in India was generally fairly mature in terms of supply,
product range and reach-even though reach in rural India still remains a challenge
for the private sector and foreign banks. In terms of quality of assets and capital
adequacy, Indian banks are considered to have clean, strong and transparent
balance sheets relative to other banks in comparable economies in its region. The
Reserve Bank of India is an autonomous body, with minimal pressure from the
government. With the growth in the Indian economy expected to be strong for
quite some time-especially in its services sector-the demand for banking services,
especially retail banking, mortgages and investment services are expected to be
strong. One may also expect M&As, takeovers, and asset sales.
In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its
stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time
an investor has been allowed to hold more than 5% in a private sector bank since
the RBI announced norms in 2005 that any stake exceeding 5% in the private
sector banks would need to be vetted by them.
In recent years critics have charged that the non-government owned banks are too
aggressive in their loan recovery efforts in connexon with housing, vehicle and
personal loans. There are press reports that the banks' loan recovery efforts have
driven defaulting borrowers to suicide.
By 2013 the Indian Banking Industry employed 1,175,149 employees and had a
total of 109,811 branches in India and 171 branches abroad and manages an
aggregate deposit of ₹67,504.54 billion (US$1.0 trillion or €960 billion) and bank
credit of ₹52,604.59 billion (US$820 billion or €750 billion). The net profit of the
banks operating in India was ₹1,027.51 billion (US$16 billion or €15 billion)
against a turnover of ₹9,148.59 billion (US$140 billion or €130 billion) for the
financial year 2012–13. Pradhan Mantri Jan Dhan Yojana (Hindi:
प्रधानमंत्री जन धन योजना, English: Prime Minister's People Money
Scheme) is a scheme for comprehensive financial inclusion launched by the Prime
Minister of India, Narendra Modi, in 2014. Run by Department of Financial
Services, Ministry of Finance, on the inauguration day, 1.5 Crore (15 million) bank
accounts were opened under this scheme. By 15 July 2015, 16.92 crore accounts
were opened, with around ₹20,288.37 crore (US$3.2 billion) were deposited under
the scheme, which also has an option for opening new bank accounts with zero
balance
Industry - Banking, Financial Services
 Founded - 1994
 Headquarters - Mumbai, Maharashtra, India
 Revenue - Rs 81,602 crore (US$12 billion) (2017)
 Profit - Rs 14,550 crore (US$2 billion) (2017)
 Total Assets - Rs 86,384,021 lakh (US$130 billion) (2017)
 Employees - 84,325 (March 2017)

The Housing Development Finance Corporation (HDFC) was amongst the first to
receive an ‘in principle’ approval from the Reserve Bank of India (RBI) to set up a
bank in the private sector, as part of RBI’s liberalization of Indian Banking
Industry in 1994. The HDFC Bank was incorporated on August 1994 by the name
of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank
commenced operations as a Scheduled Commercial Bank in January 1995.
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable
network of over 4,715 branches spread over 2,657 cities across India. All
branches are linked on an online real–time basis. Customers across India are also
serviced through multiple delivery channels such as Phone Banking, Net Banking,
Mobile Banking, and SMS based banking. The Bank also has a network of 12,260
ATMs across India. HDFC Bank’s ATM network can be accessed by all domestic
and international Visa / MasterCard, Visa Electron / Maestro, Plus / Cirrus and
American Express Credit / Charge cardholders. HDFC Bank compromises of a
dynamic and enthusiastic team determined to accomplish the vision of becoming a
world class Indian Bank. HDFC Bank’s business philosophy is based on our four
core values- Customer Focus, Operational Excellence, Product leadership and
People. They Believe that the ultimate identity and success of their bank will reside
in the exceptional quality of people and their extraordinary efforts. They are
committed to hiring, development, motivating and retaining the best people in the
industry.
Business Focus-
HDFC Bank's mission is to be a World Class Indian Bank. The objective is to build
sound customer franchises across distinct businesses so as to be the preferred
provider of banking services for target retail and wholesale customer segments,
and to achieve healthy growth in profitability, consistent with the bank's risk
appetite. The bank is committed to maintain the highest level of ethical standards,
professional integrity, corporate governance and regulatory compliance. HDFC
Bank’s business philosophy is based on five core values:

 Operational Excellence
 Customer Focus
 Product Leadership
 People
 Sustainability.

Mission Statement-

 World class Indian Bank

 Benchmarking against international standards
 To build sound customer franchises across distinct businesses
 Best practices in terms of product offerings, technology, service levels, risk
management and audit & compliance

Vision Statement-

The HDFC Bank is committed to maintain the highest level of ethical standards,
professional integrity and regulatory compliance. HDFC Bank’s business
philosophy is based on four core values such as –

 Operational excellence
 Customer Focus
 Product leadership
 People
The objective of the HDFC Bank is to build sound customer franchises across
distinct businesses so as to be the preferred provider of banking services for target
retail and wholesale customer segments, and to achieve healthy growth in
profitability, consistent with the bank's risk appetite. The bank is committed to
maintain the highest level of ethical standards, professional integrity, corporate
governance and regulatory compliance. HDFC Bank’s business philosophy is
based on five core values: Operational Excellence, Customer Focus, Product
Leadership, People and Sustainability.

Capital Structure

As on 31 March 2018 the authorized share capital of the Bank is Rs. 650 crore.
The paid-up share capital of the Bank as on the said date is Rs 519,01,80,534 /-
which is comprising of 259,50,90,267 equity shares of the face value of Rs 2/-
each. The HDFC Group holds 20.93 % of the Bank's equity and about 18.23 % of
the equity is held by the ADS / GDR Depositories (in respect of the bank's
American Depository Shares (ADS) and Global Depository Receipts (GDR)
Issues). 33.06 % of the equity is held by Foreign Institutional Investors (FIIs) and
the Bank has 5,32,368 shareholders.

The shares are listed on the BSE Limited and The National Stock Exchange of
India Limited. The Bank's American Depository Shares (ADS) are listed on the
New York Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's Global
Depository Receipts (GDRs) are listed on Luxembourg Stock Exchange under
ISIN No US40415F2002

Technology Used

HDFC Bank operates in a highly automated environment in terms of information

technology and communication systems. All the bank’s branches have online
connectivity, which enables the bank to offer speedy funds transfer facilities to its
customers. Multi-branch access is also provided to retail customers through the
branch network and Automated Teller Machines (ATMs). The Bank has made
substantial efforts and investments in acquiring the best technology available
internationally, to build the infrastructure for a world class bank. In terms of core
banking software, the Corporate Banking business is supported by Flexcube, while
the Retail Banking business by Finware, both from i-flex Solutions Ltd. The
systems are open, scalable and web-enabled.
The Bank has prioritized its engagement in technology and the internet as one of
its key goals and has already made significant progress in web-enabling its core
businesses. In each of its businesses, the Bank has succeeded in leveraging its
market position, expertise and technology to create a competitive advantage and
build market share.
AN INTRODUCTION TO DIGITAL BANKING-

Digital banking often gets confused with mobile banking and online banking true,
all these involve digital applications in one form or another. People see it as an
add-on to existing and traditional banking services. All of these are too narrow
focused. They fail to see the big picture. Digital Banking is a much broader
concept. Digital Banking is the application of technology to ensure seamless end-
to-end processing of banking transactions/operations; initiated by the client,
ensuring maximum utility; to the client in terms of availability, usefulness and
cost; to the bank in terms of reduced operating costs, zero errors and enhanced
services. Digital banking is the digitization (or moving online) of all the traditional
banking activities and programs that historically were only available to customers
when physically inside of a bank branch. This includes activities like:

 Money Deposits, Withdrawals, and Transfers

 Checking & Account Management
 Applying for Financial Products
 Loan Management
 Credit cards
 Bill Pay
 Shopping

Consumer preferences have quickly shifted to online and mobile devices, but many
financial organizations have had trouble shifting their onboarding experiences
online and to smaller screens.

In addition, until the past few years, banks were not envisioning the tremendous
shift in consumer behaviour that occurred as a result of the millennial generation
now become the largest consumers of financial products.

The Difference Between Online and Digital Banking

For the most part, these two words are synonyms. But, online banking is a bit more
narrow, online banking primarily focuses on remote deposits, money transfers, bill
pay, and basic online management of accounts. Other synonyms for online banking
include internet banking, virtual banking, and e-banking. So, online banking
focuses on digitizing the ―core aspects of banking, but digital banking
encompasses digitizing every program and activity undertaken by financial
institutions and their customers.

Benefits to the bank:

 Lower operating costs through

 The elimination of costly back-office processing operations,

 Fewer errors,
 Smaller branches (the typical branch can become a kiosk affair, providing
technology
 interfaces for the client to use plus the ability to deal with banking specialists
via a video link) – a minimum number of actual staff will be required.
 Concentrating banking/business specialists in a single Centre, who are then
available to clients via a technology link (either on their mobile, pc or via a
kiosk branch).
 Operating cost savings between 20% to 40% could be achieved this way,
according to industry
 experts. Cutting costs has the opposite effect on profits – they go up.

 Umping legacy systems;

 One of the biggest drawbacks to going ‗Digital‘ is this irrational clinging to

legacy systems (developed in the 1960s and 1970s) that hold progress back.
Banks plead the huge cost of making the change. They are wrong. The
ultimate costs of not making the change are far greater.
Epstein in the year 2015 opined the following few benefits of digital baking to
the customers-
 Improved services and product offerings;
 24/7 bank services and availability through mobile, pc or kiosk branch,
 Smart banking‘ applications that allow ALL transactions to be completed
from the device of their choice, from beginning to end (with clear
instructions and fail safe mechanisms),
 Access to a FULL range of services (savings, investments, insurance, loans,
mortgages, foreign currency, etc.),
  New useful client services such as warnings, notifications, budgeting,
expenditure analysis, savings programs, calculators (you name it – the range
is endless),
 Lower charges (and therefore cheaper banking),
 Banking that meets the client ‘s needs (not the banks)

HDFC Digital Banking

In November, Aditya Puri made a trip to Silicon Valley, home to the world's
largest technology companies from Apple and eBay to Facebook and Google. The
MD & CEO of India's second-largest private bank, HDFC Bank, was keen to study
high-tech innovations and disruptive technologies that could find application in the
Indian banking industry.

Thus, the bank has undertaken several initiatives to change the way the relationship
works between the bank and the customers. They have undertaken steps on
lending, payments, transactions, communication, data analysis as well as in-house,
in terms of training their employees to understand how banking works in digital
world. All of these offerings are meant to ease the way the customer interacts with
the bank. The bank has been closely monitoring trends that have emerged in the
financial technologies and start-up space to keep looking for ideas how they can
improve their offerings.

Thus, HDFC is a bank built with a vision to reach out to customers through digital
augmentation. It is committed to investing in advanced technology in this area
which will provide a cutting edge in the Bank’s product and service offerings.

The bank has been in forefront of technology adoption for two decades and has
been early adopters of contemporary and futuristic technology, bringing out
solutions to offer the customers the service of their choice, as customers now have
so many different methods to access and thus the banks has to be designed and
created upon a baking core.
HDFC Bank is transforming itself from a brick-and-mortar entity into a full-
scale digital bank-
HDFC has identified digital banking as the next big opportunity and is focused on
creating a world-class Indian bank, something the management had articulated 20
years ago in its vision statement.
Today, 85 per cent of the transactions by customers takes place though non-branch
channels. The mobile and Internet banking channel contributes almost 55 per cent.
They are trying to build the digital capabilities of offering the same banking
experience, ease, level of engagement and product comprehensiveness that the
bank offer face-to-face across online channels.
In fact, the bank is almost ready. HDFC Bank has already finished 75 per cent of
the work involved.
The basic infrastructure is ready and they are trying to fine tune the system. HDFC
Bank has already invested in data warehousing, analytics, outbound call centres
and models for customer relationship management (CRM). Now they are in a
position to launch their most comprehensive offering, which will be in line with
global standards whereby everything the customer can do physically can also do
virtually.
HDFC ALREADY A MARKET LEADER IN DIGITAL BANKING

HDFC Bank is already a market leader in e-commerce. "Almost 45 per cent of the
transactions are on their (debit or credit) cards and are a market leader in credit
cards. The bank also runs the payment gateway to process electronic transactions.
They are building a digital bank that should be faster in finding out the customer
needs through analytics and also provide products, including those not
manufactured by HDFC (like mutual funds, insurance, etc.)
Key Highlights of HDFC Bank’s Digital Banking Initiatives

 Wide range of banking and payment service through digital platform.

 Use innovative technologies to enhance speed and convenience to
customers. For e.g. the wearable technology like watch banking has been
introduced for the convenience customers.
 Introduction of PayZapp application an accepted and comprehensive mobile
payment solution.
 Tatkal delivery of cheques and cards and updating of KYC details online via
Net Banking.
 More than 200 services are provided via Net Banking.
 Various services for instant car loans like Zip Ride, Zip Drive etc.
 Virtual Relationship Manager- a service for high net worth individuals. It is
an app where the customers can fulfil all their banking and investment
requirements.
 Various apps and services to provide quick loans to farmers and also update
them on various price information and government schemes.
 Keeping in mind the connectivity in rural areas, it has introduced an app
called Mobile banking Lite app which do not need an internet connection.

UNIQUENESS OF HDFC BANK OVER OTHERS-

 The bank has rolled out physical robots at branches to help customers make
cash deposits, withdrawals, fixed deposits, etc.
 Unlike banks that solely targeted deposits in semi-urban and rural areas,
HDFC Bank is exploring the rural markets both for assets (cattle loan, agri
credit, etc.) and liabilities (deposits). The bank has launched innovative
solutions through technology, such as milk-to money ATMs and payment
solutions for Agri procurement.
 HDFC Bank has actually come up with a location based, real time ATM
fraud detection method.
 The bank is one of the top three players in acquiring merchants and
installing POS (point of sale) machines. Of late, the bank is betting big on
mPOS (mobile point of sale), a machine connected through mobiles that
costs less. At last count, the bank had installed 80,000 mPOS.
 It provides continuous Account Statements, there are many banks which
provides statements on a monthly basis.
Digital Products of HDFC Bank-

10 Second Loans-

HDFC Bank, India’s second-largest private lender recently launched an attracting

personal loan offer no one can deny. Incorporated in the year 1994, this Indian
banking and financial company has introduced a 10 second paperless personal
loan plan for their existing customers. If you are a HDFC customer, you would
have noticed a pre-approved personal loan offer waiting for you to apply in your
kitty.

Features of HDFC 10 Second Personal Loan Offer

 Paperless personal loan plan.
 Hassle-free and transparent personal loan process.
 Time saving loan scheme as users need not wait for loan disbursement.
 Low interest rates of 11.49% to 19.50% p.a with special interest rates for
women.
 Loan amount of up to Rs.15 lakh available.
 Tenure ranging from 12 to 60 months.
 Low processing fee and zero hidden charges for personal loans.
 Nil prepayment charges for loan amount more than Rs.10 lakh with salary
above Rs 75000

Quick Money-

Quick Money is path-breaking top up car loan product and first of its kind in the
Banking Industry. Customer having Quick Money offer in
their Net Banking can Disburse this loan in no
time. The amount gets credited to the customer’s
a/c instantly.

Zip Drive-

ZipDrive is instant Car Loan disbursal, exclusively for HDFC Bank customers.
Customers having ZipDrive Offer on their Net banking, can chose the car model
and dealer online and disburse the car loan themselves
Zip Ride-

First Time Online Disbursal of a Two-Wheeler Loan. Pre-approved customers with

ZipRide offer can disburse Two-wheeler loan for their preferred bike instantly to
Dealers account. Just login into Net banking and click on the Offer Tab.

Loan Against Credit Card-

Insta Loan and Insta Jumbo Loan are pre-approved loans that suit in case of
medical emergency, fee payments or to buy electronics, furniture, etc. On HDFC
Bank Credit Cards, Customer can convert purchases except Jewellery into
SmartEMIs. Customer can also transfer your Credit Card/Loan outstanding balance
from other bank/financial institutions to HDFC Bank Credit Cards. This kind of
loan also does not require any documentation.
Net Banking-
HDFC Bank offers a comprehensive range of transactions across multiple products
through its Net Banking channel. So, by just logging into Net Banking one could
conduct 200+ transactions from the comfort of their home or office. One can check
Account Balance, book Fixed and Recurring Deposits, Download A/c Statement
up to 5years, pay Bills, Recharge Mobile/DTH connection and much more in a
secured environment.Net Banking is an incredibly convenient and powerful tool,
letting users do everything they want with there accounts at the click of a mouse. It
is Real Time, giving users up-to-the second details on there account. All they need
to do is Log in using Customer ID and IPIN (Net Banking password). Customer ID
is mentioned on your account statement/account welcome letter/ cheque book.
People can re-generate your IPIN online in 3 easy steps.
Some of the transactions you can do through Net Banking are:
 Check your account balances and download 5-year account statement in 5,
instantly
 Book Fixed Deposit / Recurring Deposit
 Pay Utility Bills
 View your Credit Card details and pay your Credit Card Bills
 Recharge your Prepaid Mobile & DTH Connections
 Invest in Mutual Funds Online
 Book IRCTC Tickets online
 Purchase a Gift Card
 Pay your Taxes online
 Update your PAN Details online
 View your Tax Credit Statement (Form 26 AS)
 Request for a Demand Draft/ Chequebook
 Request Stop Payment of a Cheque/ Hotlist you Debit Card/ Credit Card
 View your Loan details
 Apply for IPO
 Request for Debit Card PIN Regeneration
 Register for Third Party Transfer
 Transfer funds between accounts within HDFC Bank and other Bank
Accounts
Mobile Banking-

HDFC Bank’s Mobile Banking is the most convenient and easy way to stay
connected to your bank always. One can do over 125+ transactions on their smart
phone through Mobile Banking App or Mobile browser. Its secure as as no
information is stored on the Mobile device or sim HDFC is the 1st bank to offer
the My Menu Feature where one can customize their Menu with 10 of their
favourite transactions with this feature. This will help the customer to navigate
master within the app and complete transactions in a smooth and easy manner. It is
the first bank to offer such a feature in a Mobile Banking App in Hindi.
With Mobile Banking one can access their account in mobile in a safe and secure
manner check account balance, pay bills, transfer funds and make credit card
payments anywhere, anytime with Mobile Banking.

SMS Banking-

With SMS Banking you can access your account on your mobile wherever you are.
Access your bank account, make banking transactions, monitor your accounts and
fixed deposits on your mobile. HDFC is the only bank to offer the SMS Banking
service in English and Hindi.
Mobile Applications-

Chillr

Chillr is India's first multi-bank mobile payment app that links directly to customer
bank account. It allows customer to send money instantly from there HDFC Bank
account to anyone in your phone book or to a beneficiary using his ‘Account
number & IFSC code' or ‘UPI ID’. People can also recharge, pay bills, split bills,
or request money on Chillr. Sending money on Chillr is as easy as sending a text!
Add all the bank accounts on Chillr, so that one can use just one app to manage all
your accounts.

THINGS YOU CAN DO ON CHILLR:

 Send money to your Chillr contacts instantly
 Add people who are not on Chillr using their ‘Account number & IFSC
code' or ‘UPI ID’.
 Recharge your Mobile, DTH, Datacard, Ola Money Wallet and
BookMyShow wallet.
 Pay Landline, Electricity and Gas bills.
 Pay Life Insurance premiums
 Request money from friends or customers.
 Split bills between friends.
 Scan QR code and pay to any Chillr user in your vicinity without sharing
your mobile Number

PayZapp-

HDFC Bank PayZapp, is a complete payment solution, giving users the power to
pay in just One Click.
With PayZapp, users can shop on there mobile at partner apps, buy movie tickets,
music and groceries, compare and book flight tickets and hotels, shop online and
get great discounts at SmartBuy, send money to anyone in the contact list, pay bills
and recharge your mobile, DTH and data card.
So, user just needs to link their Debit and Credit Card to PayZapp and enjoy the
most convenient and secure way of payment
HDFC Kissan App-

This app aggregates key information required by the farmer and presents it in a
basket. Be it shopping for seeds, implements or any other agro products, the farmer
can bank on for the best deals on quality agro products. Moreover, the farmer can
learn best practices, get weather updates, mandi rates, expert advise, agri news,
information on government schemes, godowns, livestock centers, crop insurance,
DD Kisan Advisories and much more. Not to forget, the best loan offers await you
with minimal eligibility criteria.

Mobile banking lite-

HDFC Bank Mobile Banking LITE app works without an Internet connection. It’s
quick to install. This app doesn’t need a Login ID/Password – the app works from
the registered mobile no.

This app can be use in both English and Hindi. With this app, one can do all this on
the move, anytime, anywhere:
· Check Balance
· Get a Mini Statement of the account
· Place request for cheque Books
· Place a request for A/c Statement
· Check the status of cheques
· Stop cheque payment
· View Fixed Deposit Summary
· Generate Net Banking password (IPIN)

Autopedia-

Autopedia is a consumer centric platform solution for HDFC Bank customers. It’s
a comprehensive knowledge bank of everything about Cars and 2-wheeler with
details like On Road Price, Pictures, Specifications, Offers, Reviews, Videos etc.
One can also find out latest Customer Pitch, HDFC Bank Offers, Dealers and
Manufacturer Offers, FAQs and can share their feedback. It reduces the tedious
manual work by providing an intelligent way of calculating Loan Amount, EMIs
and Offers available for a particular Car or Bike.
Features of Autopedia:
1. New Cars/Bikes: Access all the information about existing / upcoming vehicle
categorized by brand/price.
2. Used Cars/Bikes: Access all the information in "Finding a Used Car/Bike", send
descriptive mailer to your mail box and filter to search only from HDFC Bank
preferred dealers.
3. Compare Cars/Bikes: Based on general features, engines, types, models, prices,
etc. Keep details over mail / whats app / sms along with Loan Quote.
4. Loan Maximizer: Evaluate purchase cost and estimate loan amount including
down payment, EMIs, ROI on the basis of considerations like exchange of old car/
net exchange value/ Motor Insurance/ Registration Cost, etc. You can also keep
these details as a descriptive email.
5. Finance Knowledge Bank: Details about base offers from the dealer/
manufacturer and customized offers from HDFC bank. Along with other details
like latest customer pitch etc can be found here.
6. Exchange Cars: Helps customer to get maximum exchange value for better deal
on a new car. This will help you in hassle free upgrade to new car.
7. On Road Price: Provides the aggregate of various cost elements like insurance,
loan processing fee, etc. above the Ex-Showroom price.

SMS Banking-
With SMS Banking one can access their account using their phone wherever they
are. Customer can access their bank account, make banking transaction, monitor
their account and fixed deposits on their phone. HDFC is the only bank that offer
the SMS Banking service in English and Hindi.
SMS to be sent
Type the specific keyword for the transaction and send it to to 5676712
 "bal" for Balance Enquiry
 "txn" for Mini Statement
 "cst <6-digit cheque no.>" for Cheque Status Enquiry

Miss Call Banking-

HDFC’s Miss Call Banking is a very powerful tool where customers give a miss
call for getting Account details like bank statement, cheque book issue etc. On
receiving a miss call from the registered phone number the underlying app
performs a phone number look up and sends the data to call details for further
processing.
Miss Call Banking Phone Numbers:
1800 270 3333 A/c Balance
1800 270 3355 Mini Statement
1800 270 3366 Request for New Cheque Book
1800 270 3377 A/c Statement

Recent Development (Humanoid - Ira)

HDFC Bank, the country’s second-largest private one, will be using robots at its
branches, to assist customers.
Nitin Chugh, country head for digital banking, said more ‘humanoids’ would be
deployed after seeing the response from customers. Then, the scale of work done
with these would be expanded.
This is part of an Artificial Intelligence (AI) project it began last year, to improve
its technological capability. The bank is looking at using AI to better its customer
service, beside marketing, process automation and other aspects. It is also looking
at using these methods to drive growth in rural areas, for which it is open to
partnering with financial technology entities working in these places.
As majority of its customers have moved to digital banking.
So, it says, it is focusing on a second leg of the digital process. In line with this, it
has forayed into the use of chat-bots, computer programs powered by AI and
which can imitate conversations like a human, for help with transactions recharge,
bill payment and so on.
NEED, SCOPE AND OBJECTIVES OF THE STUDY
NEED OF THE STUDY-
After conducting a review of researches done by various professionals a gap
have been identified. The researchers had studied the aspects of internet banking, its
introduction, its development, adoption by the customers, consumers perception
about this service, its success and security related issues. But a very few
researchers had studied the net banking service with respect to the HDFC Bank.
This gap had been identified and it had led to the present research being undertaken.

SCOPE OF THE STUDY-

This project it will help me in understanding how many customers are using digital banking and
how many of them are aware of HDFC banks digital services. This project will also help me in
knowing for what purposes the customers use the digital banking services. And it will help me in
understanding why some percentage of customer are still not using Digital banking facilities and
making them aware of all the digital products of the bank.

OBJECTIVES OF THE STUDY-

The current study was undertaken to achieve the following stated objectives:
To analyse awareness among customers using Digital banking service.
To know about the Digital Banking service provided by HDFC Bank
To know how many customers are using digital banking and how many customers are
still using offline banking.
To know the cause why customers are using Net banking service.
To study the popularity of the Digital banking service among the customers of HDFC
Bank.
RESEARCH DESIGN-

RESEARCH METHODOLOGY-

PRIMARY DATA COLLECTION-

Interacting directly with the customers visiting the branch

SECONDARY DATA COLLECTION-

 Studied all the websites and mobile apps of HDFC in order to know about the products
and services of the bank.
 Through Online questionnaire: Data collection from non HDFC bank customers by
sending them questionnaire made via Google forms

Research Design-
A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure.
In fact, the research design is the conceptual structure within which research is conducted.
This research is a descriptive in nature.

Descriptive Research-
The research undertaken is a descriptive research as it is concerned with specific predictions,
with narration of facts and characteristics concerning digital banking services provided by
HDFC Bank.
Sampling Design-
Universe of study: Universe of the study means all the persons who are the
customers of HDFC Bank Salt Lake Branch.
Theoretical: It covered all the individuals who are the customers of HDFC Bank
Salt Lake Branch.
Accessible: It covered all the individuals who are the customers of HDFC Bank
Salt Lake Branch who are within our reach. In this study accessible population is
customers of HDFC Bank Salt Lake Branch, Kolkata
Sample Size: A sample of minimum respondent was selected from visting customers of
Salt Lake Branch, Kolkata. An effort was made to select respondents evenly. The survey
was carried out on 50 respondents.
Sample Unit: In this project sampling unit consisted of the various individuals who
have their bank accounts with HDFC Bank Salt LakeBranch.
Sampling Technique: For the purpose of research convenient sampling technique
was used.

Limitation of the Study-

 The customers need to have the required device and internet connection; also, they need
to have a basic education to perform banking transactions online.
 The survey has been conducted on a very small scale so no conclusive evidence can be
obtained neither any conclusive remark can be passed. The analysis is completely based
on the samples collected.

 The time period was very limited. It was difficult to have a detailed study due to limited
time period. The period of 8 weeks is not enough for the proper study of the project
DATA ANALYSIS AND INTERPRETATION

Statement 1: Age wise classification of the respondent

Analysis and Interpretation-

From the data collected it is found that majority of the respondent that is 77.6% and 14.3%
belonged to the age group of 20-30 years and 30-40 years, followed by the age group of more
than 50 years.
Statement 2: Qualification wise classification of respondent

Analysis and Interpretation-

From the above table and figure, it is seen that Majority of the respondents that is 66% are
male and only 34% are female.
Statement 3: Qualification wise classification of respondent

Analysis and Interpretation-

From the above table and figure it is found that majority of the respondent that is 56% were
graduate, followed by 42% post-graduate. And only 2% of the respondent were
undergraduate which shows the level of literacy of the sample population.
Statement 4: Occupation wise classification of the respondent

From the above table and figure it is found that majority of the respondent that is 64% were
from the student, followed by the service class (Employed) i.e. 24%. And rest is self-
employed(Business Class)12%
Statement 5: Whether respondent has account with HDFC or not-

From the above figure it can be inferred that around 52% of the people have account with HDFC
Bank and the rest i.e. 48% don’t have account with HDFC
This study was conducted in order to know the Use of Digital Banking Services among the
respondents.
Analysis and Interpretation:
From the above figure it can be seen that majority of the respondent that is 88%
use the Digital banking services while just 12% of respondents do not use digital banking
services.
It can be concluded that majority of the respondents use Digital Banking services.
This study was conducted in order to know the awareness level of respondents about the digital
applications of HDFC Bank.
Analysis and Interpretation:
From the above figure it can be seen that majority of the respondents i.e. 62% are aware about
the digital applications of HDFC Bank while only 38% are not aware. So, we can infer that the
digital applications of HDFC Bank have a good awareness level among the respondent
This study was conducted to know the E-wallets that are used by the respondents.

Analysis and Interpretation:

As it can be seen that majority of the respondents i.e.48% use Paytm as their E-wallet,
while only 2% of the respondents use Pay-Zapp. This shows that Pay-Zapp is not used that
widely as Paytm.
The study was conducted in order to know what encourages the respondents to use digital
banking services.

Analysis and Interpretation:

It can be seen from the figure that since digital banking services mostly offer convenience that is
why people are encouraged to use digital banking.
The study was conducted in order to know whether the respondents use HDFC Banks digital
banking services or not.

Analysis and Interpretation:

From the first figure it can be seen that majority of the respondents i.e.63.6% use the digital
banking service of HDFC Bank

From the second figure it is can be seen that most of the respondent that is 33.33%
uses Digital Banking services occasionally i.e. 4-5 times in a month while 22.22% said that they
use the same service vey frequently i.e. 1-2 times a week. On the other hand, 22.22% said that
they only use the service rarely i.e. once in a month. While on the other hand another 22.22%
said that they rarely use the digital banking services.
Analysis and Interpretation:

From the above figure it is can be seen that majority of the respondent that 27.1%
uses digital banking services for bill payment, whereas 12.5% respondents use this
service to transfer funds where as the others use the combination of all purposes.
Analysis and Interpretation:

From the figure it can be seen that most of the respondents i.e. 54.5% do not go to the bank
branch after they have started using the digital banking services of HDFC Bank.
This study was done in order to know the satisfaction level among the respondents using Digital
Banking Services of HDFC Bank

Analysis and Interpretation:

From the above table and figure it is can be seen that majority of the respondent that is 40%
are satisfied with the service, followed by 26.7% who are very satisfied and another 26.7% are
are okay with the service. While there are some percentage of respondents who are either
dissatisfied or very dissatisfied with the services offered.
Analysis and Interpretation:

From the above table it can be seen that majority of the respondent that is 88% trust the security
of digital banking services. While only 12% respondents said that they don’t trust the security of
digital banking services.
Analysis and Interpretation:

It can be inferred from the figure that majority of the respondents i.e. 96.0% will recommend
others to switch to net banking.
LEARNINGS-
 Learned about the digital banking products of the bank and the procedure of
doing online transactions
 Helped the customers in doing their online transactions.
 Found out the reason behind not using the digital platform by the customer.
 Encouraged usage of online platform over physical banking through
branches.
 Also enhanced the sale of the products of the bank and learned the
selling and marketing techniques.

RECOMMENDATIONS-

 Bank should take necessary steps to create more awareness among the
customers about the advantages of digital banking services available in the
bank.

 A digital banking tutorial should be given to the customers’ especially senior

citizens and the ones with lower familiarity with smartphones and
computers.

 As most customer have not availed digital banking services because of

security concern. So, bank may set up a team of personnel to train the
customers and assure people to trust the security level of digital banking
services.

 Though digital banking is convenient and easy to use, customers are afraid
of adopting these services because they feel that using these “services” are
difficult and “complicated”. So, on-site training can be provided by the
Relationship Managers and Personal Banker to their customers.

 As most customer have not availed digital banking services because of

security concern. So, bank may set up a team of personnel to train the
customers and assure people to trust the security level of digital banking
services.
CONCLUSION-

The introduction of new technology has been changing the attire of banking. The
brick and mortar banking are slowly giving place to click of the mouse banking,
technology is aiding globalization and integration of financial markets across the
globe. Customer’s expectations for new products and alternatives delivery
channels have been rising. Banks are under pressure to offer today, what customers
would be expecting tomorrow. Thanks to innovations and spread of new
technology, bank today offer the customer a choice to conduct his business across
the counter, over the phone or via a computer.

While dealing with the customers I faced various problems, different customers
had different perspective towards using digital services they had various
misconceptions about the services, like extra charges on being digitally active,
security issues etc. Best possible measures were taken by me to solve the
customers’ problems and clarify their doubts and if the problem was not solved by
me then carry forwarding the same to the senior officials and making sure the
customers were satisfied. Therefore, it was great learning opportunities for me
observing the senior bankers solve the problems of the customers

The job also involved learning about the various products and services of the bank
and observing the bankers in charge of sales while they had a talk with the
customers. This helped me to learn the way of talking differently to different
customers and the way of customizing the service and products according to the
demand of the customers.

Overall it was a great experience working in the banking sector especially in one of
the most respectable private sector banks. This internship has by all means
prepared me for the corporate world. The challenges I faced during the entire
internship and overcoming them will help me to serve better in the corporate world
in future.
 Questionnaire
Name-
 Age-
o Less than 20
o 20-30
o 30-40
o 40-50
o More than 50
 Gender-
o Male
o Female
o Others
 Qualification-
o Matric
o Intermediate
o Graduate
o Post-Graduate
 Occupation-
o Student
o Self-employed
o Service
o Professional(Doctor/Lawyer/MBA/CA/CS)
o Housewife
o Other
 Do you have an account with HDFC Bank?
o Yes
o No
 If No, then with which other banks do you a have account with?
o State Bank of India
o Punjab National Bank
o Allahabad Bank
 o ICICI Bank
o Axis Bank
o IndusInd Bank
o Others
 Do you use Digital Banking services?
o Yes
o No
 Are you aware of HDFC Banks digital applications?
o Yes
o No
 Which E-wallets do you use?
o Pay-Zapp
o Chillr
o Paytm
o Oxigen
o Mobikwik
o Vodafone M-Pesa
o Freecharge
o Other
 What encourages you to use Digital Banking services?
o Convenience
o Time saving
o 24/7 access
o Easy to use
 Do you use HDFC Banks Digital Banking services?
o Yes
o No
 If yes, how often do you use HDFC Banks Digital Banking services?
o Very Frequently
o Frequently (1-2 times a week)
o Occasionally (4-5 times in a month)
o Rarely (once in a month)
o Do not use
 For what purposes do you use the Digital Banking services?
o Transfer funds
o Account Summary
o Bill payment
o Others
 Do you still visit the HDFC bank branches since you have started using
Digital Banking services?
o Yes
o No
 How satisfied are you with the Digital Banking services of HDFC Bank?
o Very Satisfied
o Satisfied
o Okay
o Dissatisfied
o Very Dissatisfied
 Do you trust the security of Digital Banking services?
o Yes
o No
 Would you recommend others to use Digital Banking?
o Yes
o No