Hdfc Net Banking (Nagesh Dhawale)

7/31/2019 Hdfc Net Banking (Nagesh Dhawale)

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WHAT IS NET BANKING

NET BANKING

Are you still banking with your local bricks and mortar bank? Thinking

about going to a 100% onlinebanking institution? Its a decision many people are

making as an increasing number of people become internet savvy, but how do you

know if its the right decision for you?

An increasing amount offinancialproducts are being offered online, in order

to give consumers the flexibility of handling their banking needs twenty four hours

a day, seven days a week. Online banking wasnt meant to change peoples money

habits, but instead, is there to give you the option of bypassing the constraints of

local bank hours, helping you save on fees, and skipping much of the paper based

record keeping of traditional banking.

Online banks are often able to provide higher interest to savings account

holders and lower fees to their account holders. This is due to an online bank

having lower operating overhead through operating online rather than in an

establishment.
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Online banking (or Internet banking) allows customers to conduct

financial transactions on a secure website operated by their retail or virtual bank,

credit union or building society. Most of the attacks on online banking used today

are based on deceiving the user to steal login data and valid TANs. Two well

known examples for those attacks are phishingandpharming.Cross-site scripting

andkeylogger/Trojan horsescan also be used to steal login information.

A method to attack signature based online banking methods is to manipulate

the used software in a way, that correct transactions are shown on the screen and

faked transactions are signed in the background.

A recent FDIC Technology Incident Report, compiled from suspicious

activity reports banks file quarterly, lists 536 cases of computer intrusion, with an

average loss per incident of $30,000. That adds up to a nearly $16-million loss in

the second quarter of 2007. Computer intrusions increased by 150 percent between

the first quarter of 2007 and the second. In 80 percent of the cases, the source of

the intrusion is unknown but it occurred during online banking, the report states.

The most recent kind of attack is the so-calledMan in the Browserattack, where a

Trojan horsespermits a remote attacker to modify the destination account number

and also the amount.
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OVERVIEW

Onlinebankingis convenient, allowing you to pay your billsfrom the comfort of

your own home while skipping the expenseof postage. But isonline bankingsafe,

and are there disadvantages to working with your finances online? Before you

jump into the Internet banking craze, find out a little more about the benefits and

risks of banking on the World Wide Web.

AN INTRODUCTION

With cybercafs and kiosks springing up in different cities access to

the Net is going to be easy. Internet banking (also referred as e banking) is

the latest in this series of technological wonders in the recent past involving

use of Internet for delivery of banking products & services. Even the Morgan

Stanley Dean Witter Internet research emphasised that Web is more

important for retail financial services than for many other industries.

Internet banking is changing the banking industry and is having the

major effects on banking relationships. Banking is now no longer confined to

the branches were one has to approach the branch in person, to withdraw

cash or deposit a cheque or request a statement of accounts. In true Internet

banking, any inquiry or transaction is processed online without any reference

to the branch (anywhere banking) at any time. Providing Internet banking is

increasingly becoming a "need to have" than a "nice to have" service. The net

banking, thus, now is more of a norm rather than an exception in many
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developed countries due to the fact that it is the cheapest way of providing

banking.

Internet Banking facility, lets you to manage your finances in the

comfort of your home or your office as per your convenience. It is a Self-

Service Channel, which is available 24 hours a day and 365 days a year in an

absolutely simple, friendly but secured environment.

A mere touch of a button or click of a mouse makes you accessible to a host

of Banking Services, called Fingertip Banking. You can carryout your

banking transactions safely and with total confidentiality by enjoying online

banking without wasting your time or losing your peace of mind.


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Unlike PC banking, Internet banking does not require proprietary software or

access to a private network. Any customer who has arranged their own Internet

access facilities can participate. One effect of the trend towards Internet banking is

to level the playing field so that even smaller financial institutions can offer the

type of sophisticated services customers would normally expect only from a large

bank.

According to the new report, more than 22 million customers logged in to accounts

at the top 10 US banks during the first quarter, a 29 percent jump from the same

period last year. In the first quarter, about 4.6 million people used online bill

payment services offered by country's top 10 banks. The use of these services rose

37 percent compared with the same period last year.

Growth of broadband access and marketing strategies of the abn have led to the

increase in the online banking transactions in US. ComScore Networks has done a

research study and has reported that online banking and bill payment are among

the Internet's fastest-growing applications.

An American study conducted last year by Booz-Allen projects that by the year

2000, 16 million US households will be using Internet banking. While these

numbers do not appear to be significant as compared to the total population, each

Internet user is projected to be 50-250% more profitable than the average banking

customer. It is expected that these Internet customers will be some of the banking

systems most profitable customers representing close to 30% of all retail bankingprofits. The study projects that by 1999, 1,500 banks will have Internet Web sites


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to the economic role that a bank plays, it issues money in the form of banknotes

and current accounts. Banks act as both collection and paying agents for customers

therefore it helps in settlement of payments. Because banks lend money they help

in credit quality improvement. So think for a second, what would happen to the

economic setup if the banks just stop working.

Banks also play many commercial roles. They issue banknotes which are

promissory notes issued by a banker and are payable to bearer on demand. They

process payments through internet banking and telegraphic transfer. Banks also

issues drafts and checks

They accept money on term deposit and lend money through overdraft and

installment loan. Banks guarantees, performance bonds and securities underwriting

commitments and they also provide documentary and standby letters of credit for

trade financing. They also act as safe keeper of documents and other items in safe

deposit boxes

They carry out currency exchange. They are called 'financial supermarket' because

they are a place for the sale, distribution or brokerage of unit trusts, insurance and

similar financial products. There are many channels through which a bank operates

such as video and telephone banking, branches, ATM, mail, online banking and

now with mobile banking as well.

Banks are of different types depending on the type of function they are carrying

out. The bank dealing with the deposits and loans is called a commercial bank. The

ones dealing with services to mid-market business is known as business banking.

The banks that are directed to providing services to individuals are called private

banks. The banks that are located in other areas with low regulations and taxes are


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known to be carrying out offshore banking. When it is based on the Islamic

principles it is called Islamic banking.

With the advancement in technology, like other things, banks have also gone

online. Online banks have become a great blessing for everyone dealing with a

bank. An internet bank is one which offers its customers all the services online.

They do not have to get out of the chair to make a financial transaction. They can

do it just with a click of the computer mouse. Internet banks are very convenient,

fast, effective and efficient. In short, a complete package just a click away. A

customer does pay some bank charges for this facility.

For the online banking customer, the convenience factor rates high. No longer does

a person have to wait for the bank statement to arrive in the mail to check account

balances. One can check the balance every day just by logging onto one's account.

In addition to checking balances and transactions, one can catch discrepancies in

the account right away and deal with them swiftly. The best part is that this can be

done anywhere! As long as one has Internet access, one can practice online

banking.

Since bills are paid online, the necessity of writing checks, affixing postage and

posting the payment in the mail is eliminated. Once the amount is entered and the

payee is checked off, the funds are automatically deducted from the payer's choice

of account.

Since the cost to the bank is minimal, the cost to the consumer, in many cases, is

also minimal. While there is usually a fee for online banking, it can be extremely

low. Those who partake in online banking all agree it's worth every penny. Not

having to spend all Saturday morning standing in a crowded bank line is
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justification for most. It can even pay for itself since costs like postage and ATM

fees are reduced.

Online banking also eliminates paper waste, which is a plus not only for those who

have to handle all the paper work, but also for the environment.

Of course, there are also cons.

Security is always an issue with Internet transactions. Although information is

encrypted, and the chances of your account being hacked are slim, it happens.

Banks pay big bucks to install high tech firewalls. Chances are your money is in

good hands.

You're also missing the personal service. No smiling teller or representative hands

you a receipt. Instead, except for what's printed into your account, all the

paperworkis up to you. Always print copies of important transactions.

If you have to deposit cash or checks, you'll still have to spend time at the ATM.

unless a payment to you is directly deposited, this is one thing you'll always have

to handle manually

Definition:-

A system allowing individuals to perform banking activities at home, via the

internet. Some online banks are traditional banks which also offer online banking,

while others are online only and have no physical presence. Online banking

through traditional banks enable customers to perform all routine transactions, such

as account transfers, balance inquiries,bill payments, and stop-payment requests,

and some even offer online loan and credit card applications. Account information

can be accessed anytime, day or night, and can be done from anywhere. A few
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online banks update information in real-time, while others do it daily. Once

information has been entered, it doesn't need to be re-entered for similar

subsequent checks, and future payments can be scheduled to occur automatically.

Many banks allow for file transfer between their program and popular accounting

software packages, to simplify record keeping. Despite the advantages, there are a

few drawbacks. It does take some time to set up and get used to an online account.

Also, some banks only offer online banking in a limited area. In addition, when an

account holder pays online, he/she may have to put in a checkrequest as much as

two weeks before the payment is due, but the bankmay withdraw the money from

the account the day that request is received, meaning the person has lost up to two

weeks of interest on that payment. Online-only banks have a few additional

drawbacks: an account holder has to mail in deposits (other than direct deposits),

and some services that traditional banks offer are difficult or impossible for online-

only banks to offer, such as traveler's checks and cashier's checks.

Features

Online banking solutions have many features and capabilities in common, but

traditionally also have some that are application specific.

The common features fall broadly into several categories

Transactional (e.g., performing a financial transaction such as an account toaccount transfer, paying a bill, wire transfer... and applications... apply for a

loan, new account, etc.)

o Electronic bill presentment and payment - EBPP
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o Funds transfer between a customer's own checking and savingsaccounts, or to another customer's account

o Investment purchase or saleo Loan applications and transactions, such as repayments

Non-transactional (e.g., online statements, check links, co browsing, chat)o Bank statements

Financial Institution Administration - Support of multiple users having varying levels of authority Transaction approval process Wire transfer

Features commonly unique to Internet banking include

Personal financial management support, such as importing data into personalaccounting software. Some online banking platforms support account

aggregation to allow the customers to monitor all of their accounts in one

place whether they are with their main bank or with other institutions.
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BRIEF PROFILE OF HDFC:-

FULL NAME: Housing Development Finance Corporation

LOGO:

BRANCHES: 2000 Branches

HEADQUARTERS:

ADD: Ramon house, 169,

Backbay reclamation,

H.T.Parekh marg,

Churchgate, Mumbai - 400020.
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1.1 INTRODUCTION

HDFC Bank Limited (BSE: 500180, NSE: HDFCBANK, NYSE: HDB) is a

major Indian financial services company based in India, incorporated in August

1994, after the Reserve Bank of India allowed establishing private sector banks.

The Bank was promoted by the Housing Development Finance Corporation, a

premier housing finance company (set up in 1977) of India. HDFC Bank has 1,725

branches and over 5,000 ATMs, in 780 cities in India, and all branches of the bank

are linked on an online real-time basis. As of 30 September 2008 the bank had total

assets of Rs.1006.82 billion. For the fiscal year 2010-11, the bank has reported net

profit of 3,926.30 crore (US$875.56 million), up 33.1% from the previous fiscal.

Total annual earnings of the bank increased by 20.37% reaching at 24,263.4 crore

(US$5.41 billion) in 2010-11.

The Housing Development Finance Corporation Limited (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 the RBI's liberalisation of the Indian

Banking Industry in 1994. The bank was incorporated in August 1994 in 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 a young and dynamic bank, with a youthful and enthusiastic team

determined to accomplish the vision of becoming a world-class Indian bank.

HDFC bank business philosophy is based on four core values - Customer Focus,

Operational Excellence, Product Leadership and People. We believe that the

ultimate identity and success of our bank will reside in the exceptional quality of
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our people and their extraordinary efforts. For this reason, we are committed to

hiring, developing, motivating and retaining the best people in the industry. It is

one of the Big Four banks of India, along with State Bank of India, ICICI Bank

and Punjab National Bankits main competitors.

HDFC Bank Limited

Type Public

Traded as

BSE: 500180

NSE: HDFCBANK

NYSE: HDB

IndustryBanking

Financial services

Founded August 1994

Headquarters Mumbai, India

Area served Worldwide

Key peopleAditya Puri (MD)

Deepak parekh(Chairman)

Products

Finance and insurance

Investment Banking

Commercial Banking

Retail Banking

Private Banking

Asset Management
http://en.wikipedia.org/wiki/Big_Four_(banks)#Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/ICICI_Bankhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Ticker_symbolhttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=500180http://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=HDFCBANK&section=7http://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://www.nyse.com/about/listed/quickquote.html?ticker=hdbhttp://en.wikipedia.org/wiki/Bankinghttp://en.wikipedia.org/wiki/Financial_servicehttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Managing_Directorhttp://en.wikipedia.org/wiki/Finance_and_insurancehttp://en.wikipedia.org/wiki/Investment_Bankinghttp://en.wikipedia.org/wiki/Commercial_Bankinghttp://en.wikipedia.org/wiki/Retail_Bankinghttp://en.wikipedia.org/wiki/Private_Bankinghttp://en.wikipedia.org/wiki/Asset_Managementhttp://en.wikipedia.org/wiki/Asset_Managementhttp://en.wikipedia.org/wiki/Private_Bankinghttp://en.wikipedia.org/wiki/Retail_Bankinghttp://en.wikipedia.org/wiki/Commercial_Bankinghttp://en.wikipedia.org/wiki/Investment_Bankinghttp://en.wikipedia.org/wiki/Finance_and_insurancehttp://en.wikipedia.org/wiki/Managing_Directorhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Financial_servicehttp://en.wikipedia.org/wiki/Bankinghttp://www.nyse.com/about/listed/quickquote.html?ticker=hdbhttp://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=HDFCBANK&section=7http://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=500180http://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/Ticker_symbolhttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/ICICI_Bankhttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Big_Four_(banks)#India


15/32

Mortgages

Credit Cards

Revenue

24,628.38 crore

(US$5.49 billion) (2011)

Operating

income

7,885.28 crore

(US$1.76 billion) (2011)

Profit

4,017.69 crore

(US$895.94 million)

(2011)

Total assets $53.670 billion (2010)

Total equity $6.787 billion (2010)

Employees 51,888 (2010)

Website HDFCBank.com

HISTORY

HDFC Bank was incorporated in 1994 by Housing Development Finance

Corporation Limited (HDFC), India's largest housing finance company. The Bank

started operations as a scheduled commercial bank in January 1995 under the RBI's

liberalisation policies.
http://en.wikipedia.org/wiki/Mortgageshttp://en.wikipedia.org/wiki/Credit_Cardshttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Earnings_before_interest_and_taxeshttp://en.wikipedia.org/wiki/Earnings_before_interest_and_taxeshttp://en.wikipedia.org/wiki/Earnings_before_interest_and_taxeshttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/Equity_(finance)http://www.hdfcbank.com/http://www.hdfcbank.com/http://en.wikipedia.org/wiki/Equity_(finance)http://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Earnings_before_interest_and_taxeshttp://en.wikipedia.org/wiki/Earnings_before_interest_and_taxeshttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Credit_Cardshttp://en.wikipedia.org/wiki/Mortgages


16/32

Times Bank Limited (owned by Bennett, Coleman & Co. / Times Group) was

merged with HDFC Bank Ltd., in 2000. This was the first merger of two private

banks in India. Shareholders of Times Bank received 1 share of HDFC Bank for

every 5.75 shares of Times Bank.

In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total branches

to more than 1,000. The amalgamated bank emerged with a base of about Rs.

1,22,000 crore and net advances of about Rs.89,000 crore. The balance sheet size

of the combined entity is more than Rs. 1,63,000 crore. 1994 The Bank was

Incorporated on 30th August.

HDFC Bank was the first private sector bank to be authorised by the Central Board of

Direct Taxes (CBDT) as well as the Reserve Bank of India for collection of direct tax.

We, at present, provide this facility through 322 branches.

BUSINESS FOCUS

HDFC Bank deals with three key business segments. - Wholesale Banking Services,

Retail Banking Services, Treasury. It has entered the banking consortia of over 50

corporates for providing working capital finance, trade services, corporate finance,

and merchant banking. It is also providing sophisticated product structures in areas of

foreign exchange and derivatives, money markets and debt trading and equity

research.

Wholesale banking servicesBlue-chip manufacturing companies in the Indian corp. to small & mid-sized

corporates and agri-based businesses. For these customers, the Bank provides a wide

range of commercial and transactional banking services, including working capital
http://en.wikipedia.org/w/index.php?title=Times_Bank&action=edit&redlink=1http://en.wikipedia.org/wiki/Centurion_Bank_of_Punjabhttp://openwindow%28%22/applications/locator/directtax.asp%22,%22%22,%22width=640,height=380,scrollbars=yes%20,menubar=no,location=no,left=0,top=0%22)http://en.wikipedia.org/wiki/Working_capitalhttp://en.wikipedia.org/wiki/Corporate_financehttp://en.wikipedia.org/wiki/Merchant_bankinghttp://en.wikipedia.org/wiki/Merchant_bankinghttp://en.wikipedia.org/wiki/Corporate_financehttp://en.wikipedia.org/wiki/Working_capitalhttp://openwindow%28%22/applications/locator/directtax.asp%22,%22%22,%22width=640,height=380,scrollbars=yes%20,menubar=no,location=no,left=0,top=0%22)http://en.wikipedia.org/wiki/Centurion_Bank_of_Punjabhttp://en.wikipedia.org/w/index.php?title=Times_Bank&action=edit&redlink=1


17/32

finance, trade services, transactional services, cash management, etc. The bank is also

a leading provider for its to corporate customers, mutual funds, stock exchange

members and banks.

Retail banking servicesHDFC Bank was the first bank in India to launch an International Debit Card in

association with VISA (VISA Electron) and issues the Mastercard Maestro debit card

as well. The Bank launched its credit card business in late 2001. By March 2009, the

bank had a total card base (debit and credit cards) of over 13 million. The Bank is also

one of the leading players in the merchant acquiring business with over 70,000

Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant

establishments. The Bank is positioned in various net based B2C opportunities

including a wide range of internet banking services for Fixed Deposits, Loans, Bill

Payments, etc.

TreasuryWithin this business, the bank has three main product areas - Foreign Exchange and

Derivatives, Local Currency Money Market & Debt Securities, and Equities. These

services are provided through the bank's Treasury team. To comply with statutory

reserve requirements, the bank is required to hold 25% of its deposits in government

securities. The Treasury business is responsible for managing the returns and market

risk on this investment portfolio.


18/32

CUSTOMERS IN BANKS

When we talk about customer service, we tend to think it as a very simple issue of

customer satisfaction. However its very complex issue because customers in banks

comes from all walks of life:

From poorest to richest Youngest to oldest Illiterate to highly educated Sweeper to Chief Executive

Individual to Corporate People from all regions, religion, caste, age, service, profession etc People from different background, culture, temperament and ego level.

All customers from different backgrounds have different expectations. Unless the

service standards fit to each persons expectations, he will not be satisfied. Therefore

one has to understand each type of customer thoroughly to be able to providecustomer specific services.


19/32

CHAPTER -1INTRODUCTION

BRIEF PROFILE:

FULL NAME: Housing Development Finance Corporation

LOGO:

BRANCHES: 2000 Branches

HEADQUARTERS:

ADD: Ramon house, 169,

Backbay reclamation,

H.T.Parekh marg,

Churchgate, Mumbai - 400020.
http://en.wikipedia.org/wiki/Housing_Development_Finance_Corporationhttp://en.wikipedia.org/wiki/Housing_Development_Finance_Corporationhttp://en.wikipedia.org/wiki/Housing_Development_Finance_Corporation


20/32

1.1 INTRODUCTION

HDFC Bank Limited (BSE: 500180, NSE: HDFCBANK, NYSE: HDB) is a

major Indian financial services company based in India, incorporated in August

1994, after the Reserve Bank of India allowed establishing private sector banks.

The Bank was promoted by the Housing Development Finance Corporation, a

premier housing finance company (set up in 1977) of India. HDFC Bank has 1,725

branches and over 5,000 ATMs, in 780 cities in India, and all branches of the bank

are linked on an online real-time basis. As of 30 September 2008 the bank had total

assets of Rs.1006.82 billion. For the fiscal year 2010-11, the bank has reported net

profit of 3,926.30 crore (US$875.56 million), up 33.1% from the previous fiscal.

Total annual earnings of the bank increased by 20.37% reaching at 24,263.4 crore

(US$5.41 billion) in 2010-11.

The Housing Development Finance Corporation Limited (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 the RBI's liberalisation of the Indian

Banking Industry in 1994. The bank was incorporated in August 1994 in 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 a young and dynamic bank, with a youthful and enthusiastic team

determined to accomplish the vision of becoming a world-class Indian bank.

HDFC bank business philosophy is based on four core values - Customer Focus,

Operational Excellence, Product Leadership and People. We believe that the

ultimate identity and success of our bank will reside in the exceptional quality of
http://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=500180http://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=HDFCBANK&section=7http://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://www.nyse.com/about/listed/quickquote.html?ticker=hdbhttp://en.wikipedia.org/wiki/Financial_servicehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Housing_Development_Finance_Corporationhttp://en.wikipedia.org/wiki/Assetshttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Assetshttp://en.wikipedia.org/wiki/Housing_Development_Finance_Corporationhttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Financial_servicehttp://www.nyse.com/about/listed/quickquote.html?ticker=hdbhttp://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=HDFCBANK&section=7http://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=500180http://en.wikipedia.org/wiki/Bombay_Stock_Exchange


21/32

our people and their extraordinary efforts. For this reason, we are committed to

hiring, developing, motivating and retaining the best people in the industry. It is

one of the Big Four banks of India, along with State Bank of India, ICICI Bank

and Punjab National Bankits main competitors.

HDFC Bank Limited

Type Public

Traded as

BSE: 500180

NSE: HDFCBANK

NYSE: HDB

IndustryBanking

Financial services

Founded August 1994

Headquarters Mumbai, India

Area served Worldwide

Key peopleAditya Puri (MD)

Deepak parekh(Chairman)

Products

Finance and insurance

Investment Banking

Commercial Banking

Retail Banking

Private Banking

Asset Management
http://en.wikipedia.org/wiki/Big_Four_(banks)#Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/ICICI_Bankhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Ticker_symbolhttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=500180http://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=HDFCBANK&section=7http://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://www.nyse.com/about/listed/quickquote.html?ticker=hdbhttp://en.wikipedia.org/wiki/Bankinghttp://en.wikipedia.org/wiki/Financial_servicehttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Managing_Directorhttp://en.wikipedia.org/wiki/Finance_and_insurancehttp://en.wikipedia.org/wiki/Investment_Bankinghttp://en.wikipedia.org/wiki/Commercial_Bankinghttp://en.wikipedia.org/wiki/Retail_Bankinghttp://en.wikipedia.org/wiki/Private_Bankinghttp://en.wikipedia.org/wiki/Asset_Managementhttp://en.wikipedia.org/wiki/Asset_Managementhttp://en.wikipedia.org/wiki/Private_Bankinghttp://en.wikipedia.org/wiki/Retail_Bankinghttp://en.wikipedia.org/wiki/Commercial_Bankinghttp://en.wikipedia.org/wiki/Investment_Bankinghttp://en.wikipedia.org/wiki/Finance_and_insurancehttp://en.wikipedia.org/wiki/Managing_Directorhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Financial_servicehttp://en.wikipedia.org/wiki/Bankinghttp://www.nyse.com/about/listed/quickquote.html?ticker=hdbhttp://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=HDFCBANK&section=7http://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=500180http://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/Ticker_symbolhttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/ICICI_Bankhttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Big_Four_(banks)#India


22/32

Mortgages

Credit Cards

Revenue

24,628.38 crore

(US$5.49 billion) (2011)

Operating

income

7,885.28 crore

(US$1.76 billion) (2011)

Profit

4,017.69 crore

(US$895.94 million)

(2011)

Total assets $53.670 billion (2010)

Total equity $6.787 billion (2010)

Employees 51,888 (2010)

Website HDFCBank.com

HISTORY

HDFC Bank was incorporated in 1994 by Housing Development Finance

Corporation Limited (HDFC), India's largest housing finance company. The Bank

started operations as a scheduled commercial bank in January 1995 under the RBI's

liberalisation policies.
http://en.wikipedia.org/wiki/Mortgageshttp://en.wikipedia.org/wiki/Credit_Cardshttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Earnings_before_interest_and_taxeshttp://en.wikipedia.org/wiki/Earnings_before_interest_and_taxeshttp://en.wikipedia.org/wiki/Earnings_before_interest_and_taxeshttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/Equity_(finance)http://www.hdfcbank.com/http://www.hdfcbank.com/http://en.wikipedia.org/wiki/Equity_(finance)http://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Earnings_before_interest_and_taxeshttp://en.wikipedia.org/wiki/Earnings_before_interest_and_taxeshttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Credit_Cardshttp://en.wikipedia.org/wiki/Mortgages


23/32

Times Bank Limited (owned by Bennett, Coleman & Co. / Times Group) was

merged with HDFC Bank Ltd., in 2000. This was the first merger of two private

banks in India. Shareholders of Times Bank received 1 share of HDFC Bank for

every 5.75 shares of Times Bank.

In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total branches

to more than 1,000. The amalgamated bank emerged with a base of about Rs.

1,22,000 crore and net advances of about Rs.89,000 crore. The balance sheet size

of the combined entity is more than Rs. 1,63,000 crore. 1994 The Bank was

Incorporated on 30th August.

HDFC Bank was the first private sector bank to be authorised by the Central Board of

Direct Taxes (CBDT) as well as the Reserve Bank of India for collection of direct tax.

We, at present, provide this facility through 322 branches.

BUSINESS FOCUS

HDFC Bank deals with three key business segments. - Wholesale Banking Services,

Retail Banking Services, Treasury. It has entered the banking consortia of over 50

corporates for providing working capital finance, trade services, corporate finance,

and merchant banking. It is also providing sophisticated product structures in areas of

foreign exchange and derivatives, money markets and debt trading and equity

research.

Wholesale banking servicesBlue-chip manufacturing companies in the Indian corp. to small & mid-sized

corporates and agri-based businesses. For these customers, the Bank provides a wide

range of commercial and transactional banking services, including working capital
http://en.wikipedia.org/w/index.php?title=Times_Bank&action=edit&redlink=1http://en.wikipedia.org/wiki/Centurion_Bank_of_Punjabhttp://openwindow%28%22/applications/locator/directtax.asp%22,%22%22,%22width=640,height=380,scrollbars=yes%20,menubar=no,location=no,left=0,top=0%22)http://en.wikipedia.org/wiki/Working_capitalhttp://en.wikipedia.org/wiki/Corporate_financehttp://en.wikipedia.org/wiki/Merchant_bankinghttp://en.wikipedia.org/wiki/Merchant_bankinghttp://en.wikipedia.org/wiki/Corporate_financehttp://en.wikipedia.org/wiki/Working_capitalhttp://openwindow%28%22/applications/locator/directtax.asp%22,%22%22,%22width=640,height=380,scrollbars=yes%20,menubar=no,location=no,left=0,top=0%22)http://en.wikipedia.org/wiki/Centurion_Bank_of_Punjabhttp://en.wikipedia.org/w/index.php?title=Times_Bank&action=edit&redlink=1


24/32

finance, trade services, transactional services, cash management, etc. The bank is also

a leading provider for its to corporate customers, mutual funds, stock exchange

members and banks.

Retail banking servicesHDFC Bank was the first bank in India to launch an International Debit Card in

association with VISA (VISA Electron) and issues the Mastercard Maestro debit card

as well. The Bank launched its credit card business in late 2001. By March 2009, the

bank had a total card base (debit and credit cards) of over 13 million. The Bank is also

one of the leading players in the merchant acquiring business with over 70,000

Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant

establishments. The Bank is positioned in various net based B2C opportunities

including a wide range of internet banking services for Fixed Deposits, Loans, Bill

Payments, etc.

TreasuryWithin this business, the bank has three main product areas - Foreign Exchange and

Derivatives, Local Currency Money Market & Debt Securities, and Equities. These

services are provided through the bank's Treasury team. To comply with statutory

reserve requirements, the bank is required to hold 25% of its deposits in government

securities. The Treasury business is responsible for managing the returns and market

risk on this investment portfolio.


25/32

CUSTOMERS IN BANKS

When we talk about customer service, we tend to think it as a very simple issue of

customer satisfaction. However its very complex issue because customers in banks

comes from all walks of life:

From poorest to richest Youngest to oldest Illiterate to highly educated Sweeper to Chief Executive

Individual to Corporate People from all regions, religion, caste, age, service, profession etc People from different background, culture, temperament and ego level.

All customers from different backgrounds have different expectations. Unless the

service standards fit to each persons expectations, he will not be satisfied. Therefore

one has to understand each type of customer thoroughly to be able to providecustomer specific services.


26/32

1.2 REVIEW OFLITERATURE:

The Indian banking has come from a long way from being a sleepy business

institution to a highly proactive and dynamic entity. This transformation has been

largely brought about by the large does of liberalization and economic reforms

that allowed banks to explore new business opportunities rather than generating

revenues from conventional streams (i.e. borrowing and lending). The banking in

India is highly fragmented with 30 banking units contributing to almost 50% of

deposits and 60% of advances. Indian nationalized banks (banks owned by the

government) continue to be the major lenders in the economy due to their sheersize and penetrative networks which assures them high deposit mobilization. The

Indian banking can be broadly categorized into nationalized, private banks and

specialized banking institutions.

The Indian banking has finally worked up to the competitive dynamics of the

new Indian market and is addressing the relevant issues to take on the

multifarious challenges of globalization. Banks that employ IT solutions are

perceived to be futuristic and proactive players capable of meeting the

multifarious requirements of the large customer base. Private banks have been fast

on the uptake and are reorienting their strategies using the internet as a medium the

internet has emerged as the new and challenges frontier of marketing with the

conventional medium.

It introduced many more products and facilities in the banking sector in its reforms

measure. In 1991, under the chairmanship of M Narasimham, a committee was set

up by his name which worked for the liberalization The country is flooded with

foreign banks and their ATM stations. Efforts are being put to give a satisfactory

service to customers. Phone banking and net banking is introduced. The entire


27/32

system became more convenient and swift. Time is given more importance than

money.

The banking sector credit scheme envisages the development of the and the people

belonging to the section such as small and marginal farmers, landless labourers,

and artisans who suffer from financial problems. The present research study is

based on the role of rural banking sector as well as the problem of the banking

sector in rural areas.

S.M. Patel in his study A case study of repayment of crop loan and causes of

their non-payment in Maharashtra State, investigated into the position of

repayment of crop loan in the Panvel Taluka of kolaba District in Maharashtra

State. The study considered that whether education and age of the head of the

family as a member of the co-operative society is related to the repaying capacity

for crop loan and found no relationship existing between these and repayment

crop loan. The size of land holding of the member of the society was found to be

having significant relationship with repaying capacity.

H.P. Singh in his study on overdues in co-operatives, studied the volume of

overdues in co-operative credit Societies and Identified the major factors

responsible for high overdues in such societies. The study covers 34 villages of

Community Development Block of Bhivpuri in Agra District of Uttar Pradesh

State.

According to K.N. Subramanyam, proper monitoring the use of rural credit is

vital. The diversified activities of our banks have not yet emerged as viable

economic propositions for the weaker section in the rural areas. The marginal


28/32

farmers, rural artisans and other weaker sections like Scheduled cast scheduled

Tribes are yet to reap the full benefit of the availability of rural credit.

As per seventh five year plan (1985-1990) it is highlighted that the major problem

faced by the lending institution particularly the co-operative, is the most

unsatisfactory level of overdues the ratio of overdue to demand is around 40 to 42

percent in the case of co-operative and 47% in the case of regional rural banks.

Accordingly the health of agricultural credit institutions, both

Co-operative and RRBs are in a very sad state in several parts of the country. The

planning commission regrefully admits willful default and overdue are mounting

in a number of states including some co-operatively progressive states like

Maharashtra and Gujarat by writing off agricultural loans and providing subsidies

out of the states exchequer, if this trend is not reversed and if banks are reduced to

institutions providing grants rather than recycling scares resources to get the

maximum benefits for the country as a whole the banking system will be unable to

provide more credit to meet the growing needs of the farmers.

C.Dodhich in his study on Overdues in farm co-operatives credit: A study of

Rajasthan attempted to identify the socio-economic factors influencing

repayment of co-operative dues in Rajasthan and came to the conclusion that

willful defaulters falls in the category of high caste groups, better educated

persons, with large holding and borrowing heavily. They are also members of the

managing committee.


29/32

1.3 OBJECTIVE

To understand the importance of customer services in banksTo have a brief study on the banking structure of IndiaTo study about the various services in banksTo study the methods adopted by the banks to provide better services to thecustomer.

To examine the efficiency of credit provided by the banks.To study the position of overdue of banking sector in Indian economy.To analyze the different scenarios and reach of Banking System in IndianEconomy.

These objectives would prove themselves to carry on this study with a scientific

line outlook it is necessary to formulate a few hypothesis based on the information

available on the efficiently of the banking sector in bringing about rural

development in a country.


30/32

CHAPTER-2 - RESEARCH AND METHODOLOGY

2.1 METHODOLOGY

Credit provided by banks in rural areas play a major prerequisites for the healthy

economic growth of a country. The economic significance of any development

programmes cannot be assessed with out proper reference to its rural credit. In this

study efforts are made to examine in detail the role of banking sector in rural

development of the country the objective with which this study is taken up and the

methods by which the secondary data is required to be collected are discussed in

this chapter

2.2 SCOPE

Though this study is purely explorative in nature, it cannot be denied that it could

be of numerous uses to researchers and enthusiasts. The most important amongthem are.

It would pare the way for the growth of similar studies in the area of bankingsector.

It would create awareness among bankers about the needs and importance ofrural credit.

Finally it can be used as a basic for numerous scientific an innovative studieson rural development in the days a heads.


31/32

2.3 STATEMENT

Till date no specific research study has been made on the banking sectors in

relation to the current scenario and services provided by government banks.

Therefore a study of banking sector with respect to rural areas in India becomes

worthwhile to promote the socio-economic conditions of people in India and

strengthen the banking system in rural areas.

Hence the present research study concentrate on the factors resulting in such

problems in detail and would also try to solved these grave problem concerning the

rural people through various types of credit schemes.

2.4 HYPOTHESIS

H0 = Banking System Of India in the last century.

H1 = Banking System of India on present day.

A study on universal banking in India with respect to Mumbai region is under

taken to see whether the reach of our banking systems And its current coverage

and future age is commercially viable or not after considering all the necessary

factors.

2.5 METHODSOF STUDY

Though this study is purely fact finding in nature, a lot of secondary data are

required for its successful completion hence it is necessary to explain in details the

methods by which these data are sought to be collected (excluding diagram and

graph).


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Hdfc Net Banking (Nagesh Dhawale)