Hdfc ppt

All about product offered by Hdfc bank

1. TOPIC Marketing plan Sector-Banking , Company-HDFC Bank ltd , Product- Credit Card SUBMITTED TO PROFF G.PRAVIN SUBMITTED BY RISHIKA GUPTA DM20C37 1

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3. Executive Summary HDFC Bank Limited  is an Indian banking and financial services company headquartered in  Mumbai ,  Maharashtra . It has a base of 1,04,154 permanent employees as of 30 June 2019. HDFC Bank is  India ’s largest private sector bank by assets. It is the largest bank in  India  by market capitalization as of March 2020. As of 30 June 2019, the Bank's distribution network was at 5500 branches across 2,764 cities. The bank also installed 430,000  POS  terminals and issued 23570,000 debit cards and 12 million credit cards in FY 2017. HDFC Bank provides a number of products and services including  wholesale banking ,  retail banking , treasury, auto loans, two-wheeler loans,  personal loans , loans against property, consumer durable loan, lifestyle loan and  credit cards . Along with this various digital products are digitization and Smart BUY. In March 2020, HDFC (parent company of HDFC BANK) made an investment of ₹1,000 crores in Yes bank. As per the scheme of reconstruction of Yes Bank, 75% of the total investment by the corporation would be locked in for three years. On 14 March, Yes Bank allotted 100 crore shares of the face value of ₹2 each for consideration of ₹10 per share (including ₹8 premium) to the Corporation aggregating to 7.97 percent of the post issue equity share capital of Yes bank. Credit cards are fundamentally different from the others payment methods in that they involve extending credit rather than drawing on an existing store funds. Banks in conjunction with credit card association such as Visa and Master card, issue general purpose credit cards department stores also issues credit card to be used for purchases at that particular store. Like Electronic Fund Transfer, payment by credit card is not anonymous. Since paying with a credit card does not involve a store of Funds, deposit insurance and reserve requirements are not directly relevant. The bank that issues the card is label and thus merchants paid if the cardholders default .If the issuing bank fails, the credit card association guarantees payment to merchants with outstanding transaction. 3

4. Chapter -1- BANKING SECTOR REPORT 4

5. Modern  banking in India  originated in the last decade 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 and the oldest bank which is still in existence is the  State Bank of India  (S.B.I). It originated and started working as the  Bank of Calcutta  in mid-June 1806. In 1809, it was renamed as the  Bank of Bengal . This was one of the three banks founded by a  presidency government , the other two were the  Bank of Bombay  in 1840 and the  Bank of Madras  in 1843. 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 . The Indian banking sector is broadly classified into  scheduled  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 SBI has merged its Associate banks into itself to create the largest Bank in India on 01 April 2017. With this merger SBI has a global ranking of 236 on Fortune 500 index. The term commercial banks refers to both scheduled and non-scheduled commercial banks regulated under the  Banking Regulation Act, 1949 . The Indian banking system consists of 20 public sector banks, 22 private sector banks, 44 foreign banks, 44 regional rural banks, 1,542 urban cooperative banks and 94,384 rural cooperative banks in addition to cooperative credit institutions. As on May 31, 2020, total number of ATMs in India increased to 210,415 and is expected to reach 407,000 by 2021. According to Reserve Bank of India (RBI), India’s foreign exchange reserve reached US$ 534.56 billion as on July 31, 2020.  According to RBI, bank credit and deposits stood at Rs 102.19 lakh crore (US$ 1.45 trillion) and Rs 140.20 lakh crore (US4 1.98 trillion), respectively, in the fortnight ending July 31, 2020 Indian Banking Sector 5

6. EVOLUTION OF THE INDIAN BANKING SECTOR Closed market State-owned Imperial Bank of India was the only bank existing Imperial Bank expanded its network to 480 branches In order to increase penetration in rural areas, Imperial Bank was converted into State Bank of India In 2003, Kotak Mahindra Finance Ltd received a banking license from RBI and became the first NBFC to be converted into a bank In 2009, the Government removed the Banking Cash Transaction Tax which was introduced in 2005 RBI was established as the central bank of country Quasi central banking role of Imperial Bank came to an end Nationalisation of 14 large commercial banks in 1969 & six more banks in 1980 Entry of private players such as ICICI intensifying the competition Gradual technology upgradation in PSU banks As per Union Budget 2019-20, provision coverage ratio of banks reached highest in 7 years. According to RBI, India’s foreign exchange reserve reached US$ 534.56 billion as on July 31, 2020. 1921 6 For updated information, please 1935 1956 - 2000 1936 - 1955 2018 on w ar d s 2000 on w ar d s 6

7. THE STRUCTURE OF INDIAN BANKING SECTOR Reserve Bank of India Cooperative credit institutions Public sector banks (18) Private sector banks (22) Foreign banks (46) State-level institutions Other institutions Regional Rural Banks (RRB) (53) Urban cooperative banks (1,542) Rural cooperative banks (94,384) All-India financial institutions Scheduled commercial banks (SCBs) (as of September 2019) Ban k s Financial institutions 7

8. Credit off-take has been surging ahead over the past decade, aided by strong economic growth, rising disposable incomes, increasing consumerism and easier access to credit. During FY16-FY20, credit off-take grew at a CAGR of 13.93 per cent. As of FY20, total credit extended surged to US$ 1,936.29 billion. Demand has grown for both corporate and retail loans. Services, real estate, consumer durables and agriculture allied sectors have led the growth in credit. According to Reserve Bank of India (RBI), bank credit and deposits stood at Rs 102.19 lakh crore (US$ 1.45 trillion) and Rs 140.20 lakh crore (US4 1.98 trillion), respectively, in the fortnight ending July 31, 2020. Credit to non-food industries stood at Rs 101.33 lakh crore (US$ 1.43 trillion) on July 31, 2020 . GROWTH OF INDIAN BANKING SECTOR- 1 8

9. GROWTH INDIAN BANKING SECTOR-2 Access to banking system has also improved over the years due to persistent effort from Government to promote banking technology and promote expansion in unbanked and non-metropolitan regions. At the same time, India’s banking sector has remained stable despite global upheavals, thereby retaining public confidence over the years. Strong growth in savings amid rising disposable income levels are the major factors influencing deposit growth. Bank accounts opened under the Government’s flagship financial inclusion drive Pradhan Mantri Jan Dhan Yojana (PMJDY) reached 40.05 crore and deposits in Jan Dham bank accounts stood at more than Rs 1.30 lakh crore (US$ 18.44 billion). As of June 19, 2020, deposits growth of 11 per cent was marginally lower compared to growth of 11.3 per cent in the previous fortnight Significant growth possible in private sector lending as credit disbursal by private sector banks is expected to increase. Market share of private banks in advances is expected to increase from 27.7 per cent in 2017-18 to nearly 35 per cent in 2019-20 9

10. Recent TRENDS IN THE BANKING INDUSTRY SECTOR 10

11. Change in banking industry due to digitization India’s D ding Forecast (US$ billion) 46 58 75 110 150 200 270 350 11

12. Banking penetration in rural India picking pace 12

13. Mobile banking 13

14. GROWTH DRIVERS OF INDIAN BANKING Favourable demographics and rising income levels. India ranks among the top 7 economies with a GDP of US$ 2,73 trillion in 2018. The sector will benefit from structural economic stability and continued credibility of Monetary Policy. The Government passed the Banking Regulation (Amendment) Bill 2017 to empower RBI to deal with NPAs in the banking sector. The Insolvency Bankruptcy (Amendment) 2017 Bill was a n d Co d e Ord i n a nc e , passed by Rajya Sabha to strengthen the banking sector (as of Jan 2018). Policy support India currently spends 6 per cent of GDP on infrastructure; NITI Aayog expects this fraction to grow going ahead. As per Union Budget 2019- 20 , i n v est m e n t-dri v en growth requires access to low cost capital, which requires an investment of Rs 20 lakh crores (US$ 300 billion) every year. Infrastructure financing Government has smoothly carried out consolidation, reducing the number of public sector banks by eight. The Government of India will invest Rs 48,239 crore (US$ 6.78 billion) in 12 public sector banks in FY20 to help maintain regulatory capital requirements and financial growth in India. The Government of India will invest Rs 5,042 crore (US$ 730.88 million) in Bank of Baroda post its merger with two other public sector lenders, Dena Bank and Vijaya Bank. Economic and demographic drivers Government initiatives The scheme was launched on March 28, 2018 to provide social security to elderly people by providing Rs 10,000 (US$ 155) pension per month. The scheme h a s subscription limit till 31st March 2020. The scheme has investment limit of Rs 15 lakh (US$ 23,274). Pradhan Mantri Vaya Vandana Yojna The Government of India plans to allow Common Service Centers (CSC) to offer banking services. CSC will offer free internet through BharatNet till March 2020. Common Service Center (CSC) 14

15. ADVANTAGE IN INDIA Increase in working population and growing disposable incomes will raise demand for banking & related services. Housing and personal finance are expected to remain key demand drivers. Rural banking is expected to witness growth in the future . Mobile, internet banking and extension of facilities at ATM stations to improve operational efficiency. Vast un-banked population highlights scope for innovation in delivery . Rising fee incomes improving the revenue mix of banks. High net interest margins along with low NPA levels ensure healthy business fundamentals. Wide policy support in the form of private sector participation and liquidity infusion. Healthy regulatory oversight and credible monetary policy by the Reserve Bank of India (RBI) have lent strength and stability to the country’s banking sector. A D V A N T A GE INDIA 15

16. Chapter – 2- COMPANY INTRODUCTION 16

17. HDFC Bank Limited is a holding company. The bank offers a range of banking services covering commercial and investment banking on the wholesale side and transactional/branch banking on the retail side. It also offers financial services. The bank's segments include treasury, retail banking, wholesale banking and other banking business. The treasury segment primarily consists of net interest earnings from the Bank's investment portfolio, money market borrowing and lending, gains or losses on investment operations and on account of trading in foreign exchange and derivative contracts. The retail banking segment serves retail customers through a branch network and other delivery channels, as well as through alternative delivery channels. The bank provides its corporate and institutional clients a range of commercial and transactional banking products. The other banking business segment include income from para banking activities. Vision TO be customer driven best managed enterprise that enjoy market leadership in providing housing related finance. Mission HDFC banks mission ids to be “ a world class Indian Bank”, benchmarking themselves against international standards and the best practices I terms of product offering ,technology ,service levels, risk management and audit & compliance . Objective is to build sound customer franchises across distinct business so as to be a preferred provider of banking service for target retail and wholesale customer segment , and to achieve a healthy growth in profitability , consistent with the bank’s risk appetite . We are committed to do this while ensuring the highest level of ethical standard , professional integrity , corporate governance and regulatory compliance . COMPANY OVERVIEW 17

18. 2020 Launched video Know Your Customer (KYC) facility for its customer Launched DigiDemat cum Trading facility HDFC Bank signs MoU with Odisha government to boost start-ups in the state. 2019 HDFC Bank ties up with the CSC (Common Service Centre) SPV (Special Purpose Vehicle) to take banking and financial services to doorways for the people who are living in small areas of the country through its network of over 1 lakh VLEs, which will be supported by HDFC Bank’s branches over the 30 states. 2018 Launched Accelerator Engagement Programme (AEP), where HDFC Bank will partner with leading start-up accelerators from across the world to gain early access to over 30,000 fintech ideas and innovative solutions. 2011 Launched its new credit card offering called Infinia in direct competition with global credit card major ,American Express(Amex) .The new HDFC product is exclusively for the bank's high net worth and super rich clients in the country. 2005 HDFC Bank ties up with the International Bank of Qatar (IBQ) to launch banking services in Qatar. 2003 HDFC Bank launches India's first mobile payment solution. 2001 The bank has opened its first branch in Aurangabad. HDFC Standard Life Insurance has entered into a memorandum of understanding with the Chennai-based Indian Bank. 2000 A new company called SESAMi.com (India) has been formed by a strategic alliance between HDFC Bank and Singapore Telecom's e-commerce company SESAMi.com, to offer e-commerce solutions for the Indian market. 1994 The bank was incorporated on August 30 th , 1994. A new private sector bank promoted by Housing Development Corporation Ltd. (HDFC), a premier housing finance company. The bank is the first of its kind to receive an in-principle approval from the RBI for establishment of a bank in the private sector. Certificate of Commencement of Business was received on October 10 th , 1994 from RBI Milestones OF HDFC bank IN Chronological Order 18

19. SEGMENTATION TRAGET POSITIONING 1. Demographic Variables: 1.1 Locations: Urban & sub urban 1.2. Occupation: Working/ Business/ MIG & HNI Clients 1.3. Age: Minor-joint holder & Above 18 2. Psychographic Variable: 21. Values : Trusted Banking System 2.2 Lifestyle: Rural With Basic banking facility 2.3 Personality: Looks for security and conservative though process 1. Separate marketing strategy for different segment 2. Tailors its marketing campaigns to meet the needs of target prospects. 3. MIG/HNI 1. Trust, credibility and reinforces 2.Total financial solution provider 3. Modern Bank 4. Quick Service 5. Doorstep Service 6. Customer Friendly HDFC BANK SEGMENTATION , TARGET AND POSITIONING . 19

20. SR NO Products Retail 1 CARDS credit card • Regular • Premium • Super premium • Co-branded card • Commercial or business card • Cash back card • Secured card • Prepaid credit card Debit card • Visa Debit Card • Visa Electron Debit Card • Mastercard Debit Card • Maestro Debit Card • RuPay Debit Card • Contactless Debit Card 2 ACCOUNTS • Salary account • Reimbursement account • Exchange earner foreign currency account • Saving account • Digisave youth account • Salary family account • NRI account • DMAT account • CURRENT ACCOUNT   3 DEPOSITS • Fixed deposit • Recurring deposit • Fixed deposit via SMS   4 LOANS • Personal loan • Loan on credit card • New car loan • Two-wheeler loan • Business growth loan • Home loan • Pre-owned loan • Loan against car • Educational loan • Rural loan • Salary loan • Gold loan • Loan against securities • Loan against rental receivables • Loan for Professional Government Sponsored programs • Super bike loans • Loan against property 5 EMI • Consumer durable • Lifecare • lifestyle   6 FASTAGS ·        Fastags cards   PRODUCT AND SERVICE OFERED BY HDFC BANK -1 20

21. 7 INVESTMENT • Public Provident Fund • National Pension System • Mutual -ISA • Mutual Funds-InvestNow • Demat Account   8 LIFE INSURANCE • Term Insurance • Pension plan • Child Insurance plan • Investment plan   9 HEALTH INSURANCE • Mediclaim • Super Top-up Insurance   10 VEHICLE INSRANCE • Private car insurance • Two-wheeler Insurance • Commercial vehicle Insurance   11 TRAVEL INSURANCE • HDFC ERGO TRAVEL INSURANCE • Student Travel Insurance   12 SOCIAL SECURITY SCHEME • Pradhan Mantri Jeevan Jyoti Bima Yojna • Pradhan Mantri Suraksha Bima Yojna • Atal Pension Yojna   13 HOME INSURANCE • HDFC ERGO Home Insurance   PRODUCT AND SERVICE OFERED BY HDFC BANK-2 21

22. SWOT ANALYSIS STRENGHT Excellence performance in NEW MARKET - HDFC Bank limited has built expertise at entering new markets and making success of them .the expansion helped the organization to build new revenue stream and diversify the economic cycle risk in the markets it operates in. Strong Distribution Network - AS HDFC is a old bank it had great hold on market and a reliable distribution network that can reach to potential market . Strong Dealer community – It has built a strong culture where dealer and distribution not only promote the product but also invest I training the sales team so that they easily communicate with the customer and explain them how he/ she can enjoy maximum benefit of the product. High skilled work-force – huge investment done on the training program of the employee and the work force. Automation of activities brought consistency of quality – it has enabled the company to scale up and scale down based on the demand condition of markets Efficient free cash flow system- it has efficient free cash flow that provide resource in the and of the company to expand new projects. WEAKNESS Low Rural Penetration - HDFC has low rural penetration in the rural area where it needs to work on. Low forecasting availability – it has low demand forecasting thus end up keeping higher inventory both in-house and in channel. Inefficient positing and unique quality of product –this lead to the high competition on this segment by the competitor. Low investment in research and devel opment – HDFC has low rate of innovation than other leading competitor it has come across as a mature firm looking forward to bring out product based on tested features I the market. Limited success outside core business- even though HDFC Bank is one of leading organization I its industry it has faced challenges in moving to others product segment with its present culture. 22

23. Opportunities The new tax assessment strategy can essentially affect the method of working together and can open new open door for set up players, for example, HDFC Bank Limited to expand its productivity. New patterns in the customer conduct can open up new market for the HDFC Bank Limited . It gives an incredible occasion to the association to fabricate new income streams and differentiate into new item classes as well. New ecological approaches – The new open doors will make a level battleground for all the major parts in the business. It speak to an incredible open door for HDFC Bank Limited to commute home its preferred position in new innovation and addition piece of the pie in the new item class. New clients from online channel – Over the previous few years the organization has put immense amount of cash into the online stage. This speculation has opened new deals channel for HDFC Bank Limited. In the following not many years the organization can use this open door by knowing its client better and serving their necessities utilizing large information investigation. The new innovation gives an occasion to HDFC Bank Limited to rehearses separated evaluating technique in the new market. It will empower the firm to keep up its reliable clients with extraordinary assistance and draw new clients through other worth situated suggestions. Monetary uptick and expansion in client spending - following quite a while of downturn and moderate development rate in the business, is an open door for HDFC Bank Limited to catch new clients and increment its piece of the pie. Opening up of new business sectors due to government understanding – the reception of new innovation standard and government international alliance has given HDFC Bank Limited an occasion to enter another developing business sector. Threat The interest of the exceptionally beneficial items is occasional in nature and any far-fetched occasion during the pinnacle season may affect the productivity of the organization in short to medium term. No standard flexibly of imaginative items – Over the years the organization has built up various items however those are frequently reaction to the improvement by different players. Besides the gracefully of new items isn't customary subsequently prompting high and low swings in the business number throughout timeframe. Rising crude material can represent a danger to the HDFC Bank Limited productivity. Impersonation of the fake and bad quality item is likewise a danger to HDFC Bank Limited's item particularly in the developing business sectors and low pay markets. Expanding pattern toward neutrality in the American economy can prompt comparative response from other government hence adversely affecting the global deals. Extreme rivalry – Stable benefit has expanded the quantity of major parts in the business over most recent two years which has squeezed productivity as well as on by and large deals. Lack of gifted labor force in certain worldwide market speaks to a danger to consistent development of benefits for HDFC Bank Limited in those business sectors. 23

24. Opportunities (external , positive) Threat (external , negative) Strengths (internal , positive) Strong distribution network and strong dealer community should be used to gain new client through online as they have strong connection by utilizing the large information they have through dealer and distributors. High skilled work should be used for the impersonation of the fake and bad quality. With high skilled workforce HDFC performance is best in new market therefore they should use this and do proper business expanding plans . Efficient free cash flow and resources should ne used to handle the strong rival in the market by better promotion and campaign. Weaknesses (internal , negative) Opening up of new business sectors due to government understanding is great opportunity to penetrate in rural market and get tax benefit with new tax strategy. The new innovation idea should be used to improve forecasting and also better positing of the product. Better positing of product an services to handle the strong rivalriy and be ahead of the competitors. Investing more on research and development they be ahead in technology , and do better expansion of business with better forecasting analysis. SWOT ANALYSIS IN MATRIX 24

25. POTERS ANALYSIS 25

26. THREAT OF NEW ENTRY We are aware of the fact that despite of strict laws and high capital requirement many new bank enter into the market .which lead to threat of entry high. But due to many merger and bank failures no of total banks is decreasing. Core reason for this trust factor where customer loyalty play important role so for HDFC threat of new entrant is important factor as it have to maintain a proper balance. Competitive rivalry Competition within the finicality industry is probably the strongest of the Poters it has a great influence where in baking sectors there few competitors as due to several merger taking place and also difference in product and service provided is very less the switching cost is usually low but in the case of loan it would be difficult , customer in past where very loyal but now a days customer are bit experimental have accounts in more than one bank but HDFC being second largest bank and have gained the trust of the people it can strongly handle competitive rivalry Buyers power The banking  enterprise   is based   closely   at the  bargaining  strength  of  customers . Some have  greater   strength  than others. For instance,  person   customers ,  in particular   the ones  in the  retail banking  marketplace, have  fairly  little bargaining  strength . That's  due to the fact  the  lack of  a  unmarried  account  essentially  has  minimum  to no  effect   at the  company's  backside  line . But the bargaining  strength  of  huge   organizations  of  clients  is  extra   due to the fact  the  financial institution   can not   manage to pay for  to  go through  mass defections of depositors. Corporate  customers  and  high-net- really well worth  individuals  (HNWI)  additionally  have  extra  bargaining  strength   because the   lack of   massive   money owed  and  reasserts  of  sales  can  greater   considerably   have an effect on  the  financial institution 's profitability. The difficulty  of  client  bargaining  strength   mainly   through  extending  appealing  sign-up  gives  to new  customers . It  additionally  makes efforts to get  present   customers  to open  extra   money owed  and  join up   for added  services, which  successfully   will increase  the switching  value  for  customers   through  making it  greater   difficult  for them to  switch  their  budget  to  some other   financial institution . Threat of Substitute IN banking sectors three is no such huge effect of threat of substitute yes the service and product are usually same but that are easy handle by big company like HDFC as they strong holding on market with strong dealer and distributor channel yes entry of digital wallet and other digital payment method may effect but not much because HDFC too have their own app for online transaction. Supplier power There are  primary   providers  for a bank. The first  organization   incorporates  of depositors who  deliver  the  number one   aid  of capital,  even as   the second one  is its employees,  additionally   called  the  aid  of labor. The  danger  from  man or woman  depositors is minimal,  simply  the  manner   it's far  with the bargaining  energy  of consumers. Major corporate  customers ,  and  big   corporations  of depositors, though,  have a tendency to be  a  massive   danger 26

27. BCG MATRIX EXPLANATION The BCG framework is a key administration device that was made by the Boston Consulting Group, which helps in breaking down the situation of a key specialty unit and the potential it has to bring to the table. The framework comprises of 4 orders that depend on two measurements. These first of these measurements is the business or market development. The other of these measurements is the overall piece of the pie of the key specialty unit. Vital specialty units are set in one of these 4 characterizations. The BCG lattice for HDFC Bank Limited will help settle on the procedures that can be executed for its vital specialty units. Key specialty units with high market development rate and high relative piece of the pie are called stars. Organizations ought to put resources into their stars and can execute vertical incorporation, market infiltration, item advancement, market improvement, and flat coordination procedures. Key specialty units with high market development rate and low relative piece of the pie are called question marks. These key specialty units require close contemplations whether the business should proceed with them or strip. Vital specialty units with low market development rate yet with high relative piece of the pie are called gold mines. The business ought to put resources into these to keep up their overall piece of the pie. Ultimately, the vital specialty units with low market development rate and low relative piece of the pie are called canines. The business ought to strip these vital specialty units. 27

28. Step 1 Enter the Title of Your BCG Matrix     BCG Matrix for …                 Step 2 Step 3 Step 4 DO NOT ENTER Step 5 Step 6 Enter the Products to be Mapped Enter market share for the product/brand Enter market share for their largest competitor Relative market share will automatically calculate below Enter the market growth rate % Enter revenue pa in LAC Note: Circle sizes represent revenue size 1 HDFC CREDIT CARD 55.69% 24.40% 2.28 33.70% 1,340,969 2 HDFC LIFE INSURANCE 23.30% 18.60% 1.25 2.00% 34,121 3 HDFC DEBIT CARD 41.88% 29.15% 1.44 30.57% 598,412 4 HDFC MUTUAL FUND 16.71% 23.00% 0.73 30.20% 27,600 5 HDFC FOREX CARD 16.50% 45.00% 0.37 3.00% 15,200 HDFC BANK LIMITED CLOSE COMPEDITIOR CREDIT CARD ICICI BANK HDFC LIFE INSURANCE ICICI Prudential  Life Insurance  Company Ltd. HDFC DEBIT CARD ICICI BANK HDFC MUTUAL FUND BAJAJ FINANCIEAR HDFC FOREX CARD AXIS BANK REFERENCE FOR BCG MATRIX GRAPH All shares are calculated on figures available in rbi.org (private sector banks) 28

29. STAR The CREDIT CARD brand Strategic business unit is a star in the BCG matrix of HDFC Bank Limited, and this is also the product that generates the greatest sales amongst its product portfolio. The potential within this market is also high as consumers are demanding this and similar types of products. HDFC Bank Limited should undergo a product development strategy for this , where it develops innovative features on this product through research and development. This will help HDFC Bank Limited by attracting more customers and increases its sales. The DEBIT CARD brand Strategic business unit is a star in the BCG matrix of HDFC Bank Limited as HDFC Bank Limited has a 41.8% market share in this category. It also the market leader in this category. The overall category is expected to grow a approx. 30.2% next month which shows that the market growth rate is expected to remain high. HDFC Bank Limited should use its current products to penetrate the market. This could be done by improving its distributions that will help in reaching out to untapped areas. This will help increase the sales of HDFC Bank Limited. CASH COW The HDFC LIFE INSURANCE strategic business unit is a cash cow in the BCG matrix of HDFC Bank Limited. This is an innovative product that has a market share of 23.3% in its category. HDFC Bank Limited is also the market leader in this category. The overall category has been declining slowly in the past few years. HDFC Bank Limited has the power to influence the market as well in this category. It should, therefore, invest in research and development so that the brand could be innovated. This will help the category grow and will turn this cash cow into a star. The overall benefit would be an increase in sales of HDFC Bank Limited. DOGS The HDFC FOREX strategic business unit is a dog in the BCG matrix for HDFC Bank Limited. This is operating in a market segment that is declining in the past few years. The company also has negative profits for this strategic business unit. However, it is expected that the market will grow in the future with environmental changes that are occurring. The recommended strategy for HDFC Bank Limited is to invest in the business enough to convert into a cash cow. This will ensure profits for HDFC Bank Limited if the market starts growing again in the future. 29

30. CHAPTER 3- COMPANY PERFOMANCE ANALYSIS 30

31. PERFOMANCE ANALYSIS This year HDFC further consolidated its leadership position by delivering consistent improvement in their performance, introducing more impactful employee initiatives, increasing their commitment to Parivartan, fueling the next wave in digitization through ‘Digital 2.0’, committing to greater focus on ESG, and continuing to expand its geographic reach. HDFC recorded an improvement in all key financial metrics, namely Net Interest Income, Deposits, Loans and Investments during the year. it focus on diversifying across customer segments and constant effort to deliver superior customer experiences have resulted in this healthy and consistent growth. 31

32. PROFIT AND LOSS STATEMENT AS ON 31 ST       Year ended 31-Mar-20 Year ended 31-Mar-19 I INCOME     Interest earned   1,148,126,509 989,720,505 Other income   232,608,187 176,258,849 Total 1,380,734,696 1,165,979,354 II EXPENDITURE     Interest expended   586,263,979 507,288,285 Operating expenses   306,975,289 261,193,700 Provisions and contingencies 224,922,278 186,715,716 Total 1,118,161,546 955,197,701 III PROFIT     Net profit for the year 262,573,150 210,781,653 Balance in the Profit and Loss account brought forward 492,233,022 404,534,155 Total 754,806,172 615,315,808 IV APPROPRIATIONS     Transfer to Statutory Reserve 65,643,288 52,695,413 Dividend (including tax / cess thereon) pertaining to previous year paid during the year, net of dividend tax credits 48,933,585 40,525,854 Interim Dividend (including tax) 16,469,504 - Transfer to General Reserve 26,257,315 21,078,165 Transfer to Capital Reserve 11,238,460 1,053,354 Transfer to / (from) Investment Reserve Account - - Transfer to / (from) Investment Fluctuation Reserve 11,340,000 7,730,000 Balance carried over to Balance Sheet 574,924,020 492,233,022 Total 754,806,172 615,315,808 V EARNINGS PER EQUITY SHARE (FACE VALUE ` 1 PER SHARE) ` ` Basic 48.01 39.33 Diluted 47.66 38.94 Balance sheet & PROFIT AND LOSS STATEMENT of HDFC 2019-2020 BALANCE SHEET AS ON 31 ST MARCH 2020 As at 31-Mar-20 As at 31-Mar-19 CAPITAL AND LIABILITIES     Capital 1 5,483,286 5,446,613 Reserves and surplus 2 1,704,377,008 1,486,616,908 Deposits 3 11,475,022,947 9,231,409,284 Borrowings 4 1,446,285,372 1,170,851,238 Other liabilities and provisions 5 673,943,976 551,082,863 Total 15,305,112,589 12,445,406,906 ASSETS     Cash and balances with Reserve Bank of India 6 722,051,210 467,636,184 Balances with banks and money at call and short notice 7 144,135,970 345,840,208 Investments 8 3,918,266,581 2,931,160,725 Advances 9 9,937,028,781 8,194,012,167 Fixed assets 10 44,319,155 40,300,043 Other assets 11 539,310,892 466,457,579 Total 15,305,112,589 12,445,406,906 Contingent liabilities 12 11,289,534,044 10,247,151,183 Bills for collection 515,849,020 499,528,010 32

33. GRAPHICAL PRSENTATION OF LAST 3 YEAR GROWTH OF HDFC BANK YEARS RUPEES ( CRORE) 2017-18 1,063,934 201819 1,244,541 2019-20 1,530,511 BALANCE SHEET GROWTH YEARS RUPEES ( CRORE) 2017-18 376,167 201819 432,687 2019-20 496,691 AVERAGE GROWTH IN LAST TWO YEARS = 19.9% RETAIL ASSETS AVERAGE GROWTH OF LAST TWO YEAR=14.90% 33

34. YEARS RUPEES ( CRORE) 2017-18 788,771 3,43,093 4,45,678 2018-19 923,141 3,91,198 5,31,943 2019-20 1,147,502 4,84,625 6,62,877 DEPOSITS AVERAGE INCREASE IN DEPOSIT IN LAST TWO YEAR 20.66% 34

35. YEARS RUPEES (CRORE) 2017-18 17,487 201819 21,078 2019-20 26,257 YEARS RUPEES (CRORE) 2017-18 658,333 2018-19 819,401 2019-20 993,703 PROFIT AFTER TAX ADVANCES AVERAGE GROWTH IN LAST TWO YEARS=22.86% AVERAGE GROWTH IN LAST TWO YEARS=22.55% 35

36. YEARS RUPEES (CRORE) 2017-18 17,487 201819 21,078 2019-20 26,257 PROFIT AFTER TAX AVERAGE GROWTH IN LAST TWO YEARS=22.55% GRAPHICAL LAST THREE INCREASE IN EFFICIENCY 36

37. YEARS % 2017-18 41.0 2018-19 38.6 2019-20 39.7 YEARS % 2017-18 14.8 201819 17.1 2019-20 18.5 CAPITAL ADEQUECY RATIO AVERAGE GROWTH IN LAST TWO YEARS 11.86 % COST TO INCOME RATIO AVERAGE FALLL IN LAST TWO YEARS 1.75% 37

38. YEAR GROSS NPS NET NPA 2017-18 1.30 0.40 2018-19 1.36 0.39 2019-20 1.26 0.36 AVERAGE FALL IN NET NPA IS 0.2% NON PERFORMING ASSETS 38

39. ITEMS % Interest from Advances 66.5 Interest from Investments 16.7 Commission, Exchange, Brokerage 11.8 Other Interest 1.7 Income Other 1.7 Income FX & Derivative Income 1.6 ITEMS % Interest Expenses 45.2 Operating Expenses 23.7 Transfer to Reserve 9.4 Provisions 8.7 Tax 8 Dividend Paid and Tax 5 Rupee Earned Rupee spent 39

40. YEAR % 2017-18 18.2 2018-19 16.3 2019-20 16.8 YEAR % 2017-18 1.93 2018-19 1.90 2019-20 2.01 RETURN ON CAPITAL RETURN ON ASSETS GRAPHICAL REPRESENTATION OF RETURNS IN HDFC BANK 40

41. YEAR EARNING PER SHARE DIVIDEND PER SHARE 2017-18 33.9 6.5 2018-19 39.3 7.5 2019-20 48.0 (YET TO BE DECIDED) EARNING &DIVIDEND PER SHARE 41

42. LAST TEN YEARS BALANCE SHEET OF HDFC 42

43. 43

44. Profit & Loss Statement of HDFC Bank   2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 Interest income 20,380.77 27,874.19 35,064.87 41,135.53 48,469.91 60,221.45 69,305.96 80,241.35 98,972.05 1,14,812.65 Interest expense 9,385.08 14,989.58 19,253.75 22,652.90 26,074.23 32,629.93 36,166.74 40,146.49 50,728.83 58,626.40 NET INTEREST INCOME 10,995.69 12,884.61 15,811.12 18,482.63 22,395.68 27,591.52 33,139.22 40,094.86 48,243.22 56,186.25 Other income 4,945.23 5,783.62 6,852.62 7,919.64 8,996.34 10,751.72 12,296.49 15,220.31 17,625.87 23,260.82 NET REVENUES 15,940.92 18,668.23 22,663.74 26,402.28 31,392.02 38,343.24 45,435.71 55,315.17 65,869.09 79,447.07 Operating costs 7,780.02 9,277.64 11,236.11 12,042.20 13,987.55 16,979.69 19,703.32 22,690.36 26,119.37 30,697.53 OPERATING RESULT 8,160.90 9,390.59 11,427.63 14,360.08 17,404.47 21,363.55 25,732.39 32,624.81 39,749.72 48,749.54 Provisions and contingencies 2,342.24 1,877.44 1,677.01 1,588.03 2,075.75 2,725.61 3,593.30 5,927.49 7,550.08 12,142.39 Loan loss provisions 1,198.55 1,091.77 1,234.21 1,632.58 1,723.58 2,133.63 3,145.30 4,910.43 6,394.11 9,083.32 Others 1,143.69 785.67 442.80 (44.56) 352.17 591.98 448.00 1,017.06 1,155.97 3,059.07 PROFIT BEFORE TAX 5,818.66 7,513.15 9,750.62 12,772.05 15,328.72 18,637.94 22,139.09 26,697.32 32,199.64 36,607.15 Provision for taxation 1,892.26 2,346.08 3,024.34 4,293.67 5,112.80 6,341.71 7,589.43 9,210.57 11,121.50 10,349.84 PROFIT AFTER TAX 3,926.40 5,167.07 6,726.28 8,478.38 10,215.92 12,296.23 14,549.66 17,486.75 21,078.14 26,257.31 FUNDS Deposits 2,08,586.41 2,46,706.45 2,96,246.98 3,67,337.48 4,50,795.65 5,46,424.19 6,43,639.66 7,88,770.64 9,23,140.93 11,47,502.29 Subordinated debt 7,393.05 11,105.65 16,586.75 16,643.05 16,254.90 15,090.45 13,182.00 21,107.00 18,232.00 18,232.00 Stockholders’ equity 25,376.35 29,924.37 36,214.15 43,478.63 62,009.42 72,677.77 89,462.38 1,06,295.03 1,49,206.32 1,70,986.03 Working funds 2,83,634.24 3,45,248.26 4,21,327.31 4,91,599.50 5,95,695.13 7,40,796.07 8,63,840.19 10,63,934.32 12,44,540.69 15,30,511.26 Loans 1,59,982.67 1,95,420.03 2,39,720.64 3,03,000.27 3,65,495.04 4,64,593.96 5,54,568.20 6,58,333.09 8,19,401.22 9,93,702.88 Investments 67,952.59 89,967.10 1,11,303.21 1,00,111.88 1,56,833.82 1,95,836.29 2,14,463.34 2,42,200.24 2,93,116.07 3,91,826.66 KEY RATIOS Earnings per share (`) * 8.50 11.06 14.24 17.74 21.08 24.42 28.59 33.88 39.33 48.01 Return on average net worth 16.52% 18.37% 20.07% 20.88% 20.36% 17.97% 18.04% 18.22% 16.30% 16.76% Tier 1 capital ratio 12.23% 11.60% 11.08% 11.77% 13.66% 13.22% 12.79% 13.25% 15.78% 17.23% Total capital ratio 16.22% 16.52% 16.80% 16.07% 16.79% 15.53% 14.55% 14.82% 17.11% 18.52% Dividend per share (`) * 1.65 2.15 2.75 3.42 4.00 4.75 5.50 6.50 7.50 *** Dividend payout ratio 0.23 0.23 0.23 0.23 0.24 0.24 0.23 0.23 0.23 *** Book value per share as at March 31 (`) * 54.55 63.76 76.10 90.62 123.70 143.74 174.56 204.80 273.94 311.83 Market price per share as at March 31 (`) ** 234.59 259.93 312.68 374.40 511.35 535.58 721.28 964.50 1,159.45 861.90 Price to earnings ratio 27.59 23.51 21.95 21.11 24.26 21.93 25.23 28.47 29.48 17.95 44

45. GRAPHICAL REPRESENTATION OF LAST 10 YEARS GROWTH OF REVENUE , PROFIT , EARNING PER SHARE AND RETURN . 45

46. 46

47. CONCLUSION Analysis and interpretation of financial statements is an important tool in assessing company's performance. It reveals the strengths and weaknesses of a firm by analysis of financial statements of HDFC BANK LTD it is clear that it have been incurring profit during the period of study. So the firm should focus on getting of more profits in further coming years by taking care internal as well as exterrel factors. And with regard to resources, the firm is take utilization of the assets properly. And also the firm has shown that it Non performing assets is decreasing with positive growth in profit , assets, deposit ,advance with above average growth calculation we can conclude that in there is expected 20.2% with current market capital 770642.95 approx. 50.05% of current market holding. 47

48. Chapter – 4 CREDIT CARD INDUSTRY 48

49. The INDIAN CREDIT CARD INDUSTRY In India, the Mastercard client base in 2019 arrived at 47 million and the market is foreseen to develop at a CAGR of over 25% during 2020 - 2025 by virtue of rising notoriety of Visas and developing pattern of buying items first and paying later. Visa market in India is more modest when contrasted and its partner charge card; nonetheless, the market is foreseen to observe huge development in the coming years. With expanding fame of Visas, banks are zeroing in on metropolitan and semi-metropolitan business sectors to build their offer on the lookout. The Indian Credit Card Market can be fragmented dependent on type, administration giving organization, financial assessment, credit limit, card type, advantages and locale. In light of type, charge card market can be bifurcated into broadly useful and private name sections. Broadly useful is the predominant portion on the lookout and the section is probably going to proceed with its strength in the coming a very long time too, as universally useful Mastercards can be utilized at an assortment of stores. Significant players working in the nation incorporate HDFC Bank Ltd., SBI Cards and Payment Services Limited, ICICI Bank Limited, Axis Bank Limited, Citibank India and Bank of Baroda, among others. Save Bank of India ceased attractive strip-based cards from December 31, 2018 because of expanding occurrences of card cloning and skimming. 49

50. India is a monstrous and incredibly exceptional market with an early installments industry that appears to be ready for sensational development. New elements on the gracefully side including controllers and members will undoubtedly get significant change the standards of the game. With aggregate and nonstop accentuation by government, national bank and other partners, non-conventional installment strategies are being re-imagined to clear route for quicker and simultaneously less expensive method of installment. As indicated by CRISIL research, computerized installments esteem in India is required to dramatically increase to Rs 4055 trillion in FY24E from Rs 1630 trillion in FY19, converting into a five-year CAGR of 20%. Visas, with all pre-necessities of computerized installment marks all the containers as a principal road. Further, consistent acceleration in optional spending, improved installment foundation and hearty development of web based business industry further heightens rise in use of Mastercards which address transient credit needs of the client, dissimilar to other installment modes The Indian Visa industry includes 74 players wherein the main 5 players hold ~75% of the piece of the pie with HDFC Bank being market pioneer at 27% piece of the overall industry followed by SBI Cards sharing a piece of the pie of 18.1% (as far as number of exceptional cards). CREDIT CARD MARKET SHARE IN INDIA 50

51. The Indian card industry contains ~80 crore check cards (~93.6% of all out gave cards at ~86 crore as of December 2019). Visas include the leftover ~6% of gave cards at ~5.5 crore as of December 2019. Charge cards have seen quicker development at 32% CAGR in FY16-19, fundamentally drove by demonetization, which has given a catalyst to non-money installments. All out spends utilizing Visas remained at ~Rs 6 lakh crore in FY19 with per card spend at ~Rs 1.3 lakh per annum. According to CRISIL research, charge card spend is relied upon to develop ~2.5 times to ~Rs 15 lakh crore in FY24E. A slew of factors ranging from governments focus on digitisation , young population with faster technology adaptability, higher mobile penetration, rising e-commerce etc have led to rise in digital payment and credit cards as an avenue. Improving payment infrastructure ( PoS machines) have further supported the acceptance of card technology for payment. According to Crisil Research, credit card spends have registered a robust growth registering a CAGR of 32% from FY15 to FY19 to reach Rs 6.1 lakh crore as of FY19, and is expected to grow at a healthy rate to reach Rs 15.2 lakh crore as of FY24E. CREDIT CARD SPENDING 51

52. Card penetration among millennials (people below 30 years of age) has witnessed a robust surge over the last 4 years from 19% to 35%, while share of customers below age of 25 has increased 10X in the same period. India, with median age of population at ~28 years, faster acceptance of upcoming technology, higher discretionary spending and open to credit are factors to keep credit card utilization moving towards north. Being an immense and extremely unique market, India with a nascent payments industry seems poised for dramatic growth with focus on faster and cheaper mode of payment. Credit cards, with all the prerequisites of digital payment, ticks all the boxes as a paramount avenue. Steady escalation in discretionary spending, improved payment infrastructure and robust growth of e-commerce industry would further escalate an upswing in utilization of credit cards addressing short-term credit needs of the customer unlike other payment modes. Under penetration, growing acceptance of credit cards by millennials and improving payment infrastructure ( PoS machines) further are seen keeping the momentum unabated ahead. Breakdown Credit Card as per age usage 52

53. NON – CASH PAYMENT ON THE RISE RISE IN USE OF CREDIT CARD Relation between rise in non cash payment and use of credit card 53

54. Indian credit card market remains severely under penetrated with card penetration at meagre 3% (per 100 population) which is amongst the lowest in the world as compared to global standards while the debit card penetration is 65%, thus entailing into a cross selling opportunity for credit card players.   Further, growing e-commerce industry is seen to provide impetus to credit card usage ahead. As per CRISIL research, e-commerce industry in India is estimated to be ~Rs 2.9 lakh crore in FY19. Out of this, ~30-35% of payments are been made using credit cards which stands at ~Rs 101675 crore. Going ahead, e-commerce industry is expected to grow at 23-28% CAGR in FY19-24E to Rs 9 lakh crore, which will provide further impetus to usage of credit card. Penetration IN the Market 54

55. HDFC CREDIT CARD HDFC Bank, the largest issuer of credit cards in the country, has grabbed more than 50 per cent market share in terms of book size - total net receivables that customers owe to the bank. HDFC credit card book size in November 2015 crossed Rs 20,000 crore mark, representing a 52 per cent market share. The total outstanding in the same month for the industry was around Rs 39,000 crore. According to Reserve Bank of India (RBI) data, the lender had 6.72 million outstanding cards in October, the highest in the industry. Its closest competitor, ICICI Bank, had about 3.43 million cards. Even though the central bank does not publish credit card book size data, it mentions the amount of transactions carried on the cards. In October, the amount of transactions carried out on HDFC Bank's credit cards was Rs 6,820 crore. For the entire industry, spending in October was Rs 21,908 crore. HDFC Bank has now turned more aggressive in its credit cards business. Till October-November in 2014, HDFC is adding about 75,000-80,000 credit cards a month. In 2015, they have doubled it and source about 180,000 credit cards a month. Experts say the growth in credit cards is being fuelled by the overall growth in the economy and the government's focus on cashless transactions. The increase in e-commerce transactions has also fuelled the growth of plastic money. Lenders have also been focusing on analytics-driven marketing and tailor-made offers to attract customers. Last year, after a gap of five years, the credit card base in the country managed to cross the pre-Lehman crisis level and is now well above the 20-million mark. According to RBI data, the number of outstanding credit cards at the end of September with approx. 131.12 (lakhs). 55

56. MARKET ANALYSIS OF 2020   JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER TOTAL TRANSACTION No. of outstanding cards as at the end of the month Value of transactions (Rupees Lakh) No. of outstanding cards as at the end of the month Value of transactions (Rupees Lakh) No. of outstanding cards as at the end of the month Value of transactions (Rupees Lakh) No. of outstanding cards as at the end of the month Value of transactions (Rupees Lakh) No. of outstanding cards as at the end of the month Value of transactions (Rupees Lakh) No. of outstanding cards as at the end of the month Value of transactions (Rupees Lakh) No. of outstanding cards as at the end of the month Value of transactions (Rupees Lakh) No. of outstanding cards as at the end of the month Value of transactions (Rupees Lakh) No. of outstanding cards as at the end of the month Value of transactions (Rupees Lakh) TOTAL No. of outstanding cards as at the end of the month TOTAL Value of transactions (Rupees Lakh) COMPANY NAME HDFC BANK 14174067 1946179 14394269 1809406 14499647 1517504 14487555 626706 14485661 1008259 14570896 1347129 14696665 1403961 14979028 1616847 14979028 1572300 131266816 12848291 AXIS BANK 6850890 692781 6916566 640347 6985774 498994 6903188 187572 6829149 255499 6811762 361471 6835217 376713 6665348 406441 6873311 427401 61671205 3847219 ICICI BANK 8793125 895442 8971011 913889 9110690 671459 9090119 232203 9091370 425938 9066788 588718 9119964 643837 9181160 674086 9272833 746680 81697060 5792252 KOTAK MAHIANDER 2276761 181032 2315950 967011 2324280 145490 2323580 64566 2321597 95455 2315363 110521 2303722 126952 2304332 137836 2314940 143715 20800525 1972578 RATNAKAR BANK 2537468 29192 2619278 279539 2681336 261602 2627886 118357 260889 155609 2609962 198031 2622743 221419 2653709 231634 2713931 6815065 21327202 8310448 56

57. COMPANY NAME. TOTAL No. of outstanding cards as at the end of the month TOTAL Value of transactions (Rupees Lakh) HDFC BANK 131266816 12848291 AXIS BANK 61671205 3847219 ICICI BANK 81697060 5792252 KOTAK MAHIANDER 20800525 1972578 RATNAKAR BANK 21327202 8310448 57

58. Calculation market share (according to J une 2020) COMPANY NAME Market share(IN RS) HDFC BANK 1347129 AXIS BANK 361471 ICICI BANK 588718 KOTAK MAHIANDER 110521 RATNAKAR BANK 198031 INDUSIND BANK LTD 124510 others 46984 TOTAL 2777365 COMPANY NAME Market share(%) HDFC BANK 48.50385988 AXIS BANK 13.01488141 ICICI BANK 21.19700866 KOTAK MAHIANDER 3.979355205 RATNAKAR BANK 7.130180351 INDUSIND BANK LTD 4.483037738 others 1.691676749 TOTAL 100 58

59. ANALYSIS Through the graph and calculation of market share we can comprehend that in year 2020 and in the past few year HDFC bank has been the market leader in credit card market in private sector and if in whole banking sector we consider than also its leading in the market wit approx. 48.50% followed by ICICI bank with 21.19% , AXIS BANK 13.014% with close competition HDFC expects a 20.2% growth in in credit card market share. 59

60. Sr.no TYPE PRODUCT 1 SUPER PREMIUM CARD • Diners Club Black Credit Card • Infinia Credit Card 2 LIFE STYLE CARD • Regalia Credit Card • Diners Club Privilege Credit Card • Millennia Credit Card • MoneyBack Credit Card • Regalia First Credit Card • Diners ClubMiles Credit Card • Freedom Credit Card 3 ENTERTAINMENT • Platinum Times Card • Titanium Times Card 4 TRAVEL • 6E Rewards XL- IndiGo HDFC Bank Credit Card • 6E Rewards - IndiGo HDFC Bank Credit Card • InterMiles HDFC Bank Diners Club Credit Card • InterMiles HDFC Bank Signature Credit Card • InterMiles HDFC Bank Platinum Credit Card 5 FUEL ·        IndianOil HDFC Bank Credit Card 6 EMI ·        Easy EMI Card 7 BUSINESS • Business Regalia • Best Price Save Max HDFC Bank Credit Card • Business MoneyBack • Best Price Save Smart HDFC Bank Credit Card • CSC Small Business MoneyBack 8 OTHERS • All Miles Credit Card • Bharat Credit Card • Business Bharat Credit Card • Business Freedom Credit Card • Business Gold Credit Card • Business Platinum Credit Card • Business Regalia First Credit Card • Diners Club Premium Credit Card • Diners Club Rewardz Credit Card • Doctor's Regalia Credit Card • Doctors Superia Credit Card • JetPrivilege HDFC Bank Select / Titanium • Platinum Edge Credit Card • Platinum Plus Credit Card • Solitaire Credit Card • Superia Credit Card • Teachers Platinum Credit Card • Titanium Edge Credit Card • Visa Signature Credit Card • World MasterCard Credit Card 9 COMMERCIAL CREDIT CARDS • Corporate Platinum Credit Card • Corporate Premium Credit Card • HDFC Bank & SAP Concur Solutions Black Corporate Credit Card • HDFC Bank & SAP Concur Solutions Prime Corporate Credit Card • Business Corporate Regalia Credit Card • Business Corporate MoneyBack Credit Card • Corporate World MasterCard Credit Card • Corporate Visa Signature Credit Card Types of credit card offered by HDFC Bank 60

61. Types of Credit Cards Regular Among the different kinds of Credit Card is the regular card -- like the HDFC Bank Platinum Plus Credit Card. It’s great as your first Credit Card. It offers all the convenience and safety of a Credit Card and combines it with benefits like Reward Points and fuel surcharge waivers. There are also three free add-on cards, which you can give to your spouse, adult children, parents, brothers or sisters. Premium As your income and needs increase, you can upgrade to a premium card like the HDFC Bank Visa Signature Credit Card. A premium card gives you higher credit limits, more magnificent Reward Points and more benefits. It also provides some lifestyle-related benefits such as free lounge access at airports. This is particularly useful if you are a frequent flyer and spent a lot of time in airports. Super Premium These are the top of the line cards that complement your lifestyle – for example, cards like HDFC Bank Infinia Credit Card or HDFC Bank Regalia Credit Card. Benefits include exclusive lounge access, complimentary golf games, personal concierge, best-in-class rewards, and fine dining discounts. These cards come with high credit limits and are usually by invitation only. Co-branded cards Co-branded cards are great when you have a specific type of usage. For example, if you are a frequent traveller , a Jetprivilege HDFC Bank Signature Card can be a great companion on your travels. You can get exclusive benefits like extra air miles, discounts on flights, dedicated check-in counters, extra baggage allowance and free lounge access. You can even redeem your miles for free flights. Other co-branded cards include Maruti Suzuki NEXA HDFC Bank AllMiles (car-related privileges), Platinum Times Card (discounts on entertainment), and Snapdeal HDFC Bank Card (online benefits). 61

62. Commercial or business cards If you want to use a card for business-related expenses, a commercial card is ideal. Achieve savings on your business travels and expenses and easily manage payments for your purchases. For large companies, corporate cards offer additional benefits and tools such as 24x7 MIS, spend analysis and seamless accounting. Examples of HDFC Bank Business Credit Cards are Business MoneyBack and Corporate Platinum. CashBack cards Moneyback or CashBack Cards allow you to earn cash back on your everyday spends. These cash back are in the form of rewards which you can use to settle the outstanding amount on your Credit Card. In addition to cash back, you also receive benefits such as shopping and dining discounts. Platinum Edge and MoneyBack are examples of cashback cards. Across these different types of cards, some features are standard. These include smart bill payments, fuel surcharge waivers, interest-free credit, zero liability after reporting lost or stolen card and EMV chips for security. Secured Cards There are some basic requirements that you must fulfil to get a Credit Card, like reasonable income and a decent credit score. Sometimes some people are unable to meet these requirements but would still need a Credit Card. There are some kinds of Credit Cards that are meant for this type of customers – one of them is a Secured Card. A Secured Card needs collateral, like a loan. You can open a Fixed Deposit in the bank to get such a Secured Credit Card. The FD will then be used as collateral. You may not even have to offer income proof to get such a card. Prepaid Credit Cards Among the different Credit Cards is the Prepaid Card. This can come in handy in some situations. For example, if you want your child to have a card, but want to contain spending within a specific limit, you could give him/ her a prepaid Credit Card. Companies can use these kinds of cards for their employees to meet everyday business expenses. Examples of this kind of card include MoneyPlus Dependent GPR Card, GPR Card, MoneyPlus Card and FoodPlus Card 62

63. As a  leader  in  India's  financial services industry, the company  is rapidly expanding  its range of services  to sub-urban consumers.  More than half of its retail  stores  are located in  suburban  and rural areas of India.  Demand  for digital banking services in rural areas  is  also  increasing, creating  new opportunities for players in the banking and  financial sectors. HDFC's service network  is  constantly expanding. An  extensive physical network of outlets and ATMs throughout India  can  serve customers in  every corner  of the subcontinent. The company also  invests  in social responsibility to strengthen its social image. HDFC has  grown rapidly  in the Indian market and has  a  physical presence  across  India. The company offers a  wide  range of financial products and  services, serving retail  and corporate  clients,  SMEs and government  agencies.  HDFC aims to cater to the diverse banking needs of the Indian  population.  It is  one of  the leading providers of digital banking services in the Indian market. Credit cards of HDFC BANK HDFC offers a  wide  range of credit cards that  cater to  the needs of different customer segments;  Larger  than most other Indian banking providers. The various categories of credit cards issued by HDFC include  premium,  super-premium, cash-back, regular, commercial and some  other  categories  that target  the needs of  other categories of businesses, professionals, freelancers  and consumers.  .  Urban consumers can use personal banking  services  to  benefit from  online services and  to  pay  their  bills  through  their credit and debit cards or e-banking Marketing Mix of HDFC BANK LMTD 63

64. HDFC Practice 7 p’s of marketing mix Product - HDFC offers a huge cluster of items and administrations including internet banking administrations, reserve funds and current financial records, monetary advances, charge and Visas, speculation alternatives and a few more focused at the financial requirements of the assorted sections of Indian customers. HDFC's retail banking administrations for singular customers have developed a great deal. Advanced innovation has especially supported the quick development of banking administrations in India. Place - The administrative center of HDFC is in Mumbai, India. Anyway the monetary administrations organization has kept up, and broad presence all through India through its financial sources and ATMs. The organization is constantly growing its actual organization all through India including the country territories. In the most recent financial, the actual organization of HDFC included 5,103 financial sources just as 13,168 ATMs across 2,748 urban areas and towns (Annual Report 2018-19). The organization has the greater part of its financial sources in semi-metropolitan and provincial zones. As HDFC entered its 25th year, it is serving more than 4.9 crore clients straightforwardly or in a roundabout way. During the most recent monetary, the organization added 316 financial sources. The portion of semi-metropolitan and country sources in the complete organization of HDFC is 53% which mirrors its attention on the provincial and semi-metropolitan market (Annual Report 2018-19). Price- Concerning evaluating, when found with regards to banking and monetary administrations, HDFC's methodology is serious yet contrasted with the contending suppliers in the public area, its costs or charges can be higher. Nonetheless, the organization is attempting to make its administrations accessible to clients from all segments across whole India remembering the populaces for the provincial and semi-metropolitan regions of the nation. While in certain zones, keeping money with public area banks can be more productive, there are numerous reasons that HDFC clients discover the bank more appropriate for their banking and protection related requirements. Aside from the better assistance, there are a lot more reasons that make HDFC the most favored bank including its serious financing costs. HDFC offers its clients both in the provincial and metropolitan territories banking administrations at reasonable costs. Regardless of whether it's tied in with opening another record or taking an advance, the organization offers bother free administrations at serious costs. In country regions, individuals need to have simply INR 2500 as least normal equilibrium. The Minimum Average Balance limit is higher for metropolitan and semi-metropolitan customers. The advance rates just as charge card loan costs are likewise moderate at HDFC. In any case, the charges for preparing advances and loan fees can be higher contrasted with the public area administrations suppliers. Credit preparing charges at HDFC can be up to 2.5% of the advance sum. This is somewhat expensive contrasted with a large portion of different banks in India. The organization additionally guarantees that its customers whether in India or outside can profit of its administrations with the most noteworthy accommodation. While in certain respects, you may discover its administrations somewhat exorbitant contrasted with others, the degree of accommodation the organization offers more than compensates for the charges. Most clients discover it profoundly reasonable since there are sure advantages related with each ledger in HDFC and the greater part of these advantages make it worth keeping money with the main monetary association of India 64

65. Promotion -Aside from the customary channels of showcasing and advancements, HDFC additionally utilizes computerized innovation and other present day instruments and techniques to advance its image and administrations. The organization advances its administrations including Mastercards , credits, and different administrations from its site. Over the long run it has increased an enormous piece of the pie in India as a main monetary administrations organization. HDFC appreciates solid brand value which is an aftereffect of predictable concentration upon client comfort. It has had the option to win in the clients' trust through devotion to support. In any case, the brand likewise advances from other computerized channels including web-based media the Facebook page of HDFC Bank has more than 2.8 million adherents. The organization additionally advances its items and administrations from Twitter. HDFC is among the most carefully progressed banking administrations supplier in India. Aside from banking from your cell phone, you can expect profoundly secure exchanges and more imaginative offices contrasted with what different suppliers have to bring to the table. It generally centers around higher client accommodation and higher security of clients' monetary information which has brought about better verbal exchange and solid upper hand contrasted with its driving rivals including government banks. Its computerized administrations are considerably more progressed including the versatile application which empowers it to offer types of assistance to different classes of clients flawlessly. Higher concentration upon client support has prompted higher client dependability and a more grounded brand picture generally. A great deal of showcasing additionally goes on at the touchpoints including banking sources and ATMs. The financial sources go about as both showcasing and deals channels for HDFC. Its devoted client support groups likewise work to educate existing clients and draw in new ones. Thus, the client base of HDFC has filled quick in India. HDFC is viewed as a capable and dependable monetary administrations brand, inimitable regarding administration quality and extraordinary as far as generally speaking accommodation. The brand likewise utilizes open air publicizing and advancements for showcasing just as print and media commercials to advance explicit items or administrations. Aside from that, the organization puts resources into social projects to keep up a socially mindful picture in its center market. Its social activities which the bank has together named as the Parivartan activity are contacting a huge number of lives across India. HDFC has additionally procured a few honors and awards for its remarkable work in the field of banking in India. Forbes names HDFC India's best bank in its review of worldwide banks for 2019. The organization has won a few additional honors in different zones also including digitalization, promoting, and advanced security of online exchanges 65

66. People -Aside from different zones, HDFC dominates as far as HR as well. The organization places selective spotlight on recruiting and creating ability that can effectively enable the organization to accomplish its main goal of being 'A World Class Indian Bank'. There are five fundamental beliefs basic the business theory of HDFC. They are operational greatness, client center, item authority, individuals and supportability. Aside from a significant guiding principle, its kin's joy and fulfillment are additionally a vital need for the organization. The organization accepts that at last its prosperity lays on the outstanding nature of its kin and their uncommon endeavors. Hence, HDFC employs, creates, propels, and holds the best individuals in the banking and monetary administrations industry. As of March 2019, the quantity of perpetual representatives working for HDFC was 98,061. The organization likewise centers around different parts of HR the executives including serious compensation and other significant advantages. It prepares its workers to give the top tier client assistance and carries on ordinary execution survey and the executives so the representatives can discover profession development. During the monetary year 2018-19, there was an expansion of 10.31% in the middle compensation of HDFC workers (Annual Report 2018-19). The organization consistently centers around boosting representative fulfillment by giving them the correct workplace just as the wide range of various significant assets and apparatuses that at that point need to accomplish their latent capacity. The organization has planned an uncommon recruiting and preparing program for up-and-comers who need to seek after a fruitful vocation in banking. The Future Bankers program by HDFC is an activity to draw in and create youngsters who need a vocation in banking. This program means to transform youthful alumni into exceptionally prepared, client confronting staff. Aside from nearby learning for the initial a half year, an entry level position of a half year is additionally included as a portion of the learning program. The effective applicants are granted a post-graduate confirmation endorsement just as an all day opening for work with HDFC. As a portion of this preparation program, the applicants are given information and aptitudes in center financial regions including banking items, measures, frameworks, guidelines and consistence systems associated with ordinary financial activities. The primary point of this program is to fill the deficiency of qualified ability in the financial business and make future pioneers in banking. 66

67. Processes- The effectiveness of banking measures is a significant concentration for HDFC to give bother free banking to every one of its clients. As of late the organization has intensely put resources into advanced innovation and AI to make banking more secure and more open. HDFC Bank is at present driving the Indian financial industry as far as digitalization and security. HDFC has consistently centered around dispatching client driven items and administrations. Creative cycles and projects are a need for the bank. As a piece of its Go Digital recommendation, the Digital Transformation, and Mobile Banking unit at HDFC was established in July 2014. The DTMB group works after progressing HDFC computerized advancements in the advanced, portable, and social space. The organization has brought a huge scope of computerized items that make the way toward banking simpler just as secure. Aside from its ground-breaking net financial entryway and versatile banking application, the organization has dispatched a large group of profoundly fruitful advanced financial items including moment credits and a few different applications. As of late it additionally presented automated colleagues at HDFC Bank sources. The organization is likewise wanting to dispatch humanoids in the homegrown financial space and clients may before long go over one at one of their city branches. For making banking even advantageous, HDFC Bank likewise permits its clients to visit with bank delegates on talk and Facebook Messenger and profit of different administrations including charge installments, occasion appointments, and travel appointments. By and large through the assistance of AI, Augmented Reality and computerized innovation, the organization has had the option to improve the way toward Banking and exchanges and make them much simpler, quicker, helpful and secure also. 67

68. P hysical evidence - It is the digital era and a very large number of customers are using their smartphones and smartphone apps for their banking needs and to access their bank accounts online. However, HDFC has an extensive physical network spread across India including its rural parts. While customers can avail of most of the services online, they can still walk into a nearby branch to see a representative face to face or to ask for information related to new products or services. With the growing use of online banking, the need for paper has nearly been eliminated from most processes. Customers can fill most of the forms online and even apply for loans from their smartphones or computers. However, there are several areas where a customer may like to see a representative face to face and talk to him. In such a case, they can reach HDFC at any of its touchpoints throughout India. While there are several banks with an extensive network in India, HDFC’s outlets and ATMs can be traced easily and recognized by their distinct logo as well as blue, white and red colors. The number of HDFC ATMs throughout the country has also grown fast which its customers use for withdrawal and other services. In tier 1 and 2 cities of India especially, it is not difficult to come across its outlets and ATMs at every major location. 68

69. REMARKABLE ADD CAMAPIGN BY HDFC BANK. #  ‘ Make Every #WishComeTrue with #HDFCBankFestiveTreats’ campaign’-Diwali 2019 AS a leader digital-innovation , HDFC use a cleverly way to use the digital plat form where it introduce idea where get hold the digital influencer where promoting the HDFC offers by the product they wish to buy by using HDFC offers where HDFC provided offer all segments from beauty products, clothing line, travelling and also consumer durable products this made the add very much personalized and was one of its type was one of the best add campaign of that year on the occasion of Diwali where people are on buying mood and also this type of add instigate many compulsive buyers , materialistic buyers to .This uniqueness of its plans made HDFC a true leader in its field. This prove the point of 7p’s marketing mix where promotion is one of the strength of the HDFC bank and playing important role . 69

70. OVERVIEW By the use of 7p’s HDFC is a market leader in the credit card segment and also the second larges bank in the Indian banking segment with strong penetration in all the state and mainly a strong hold on urban- rural “1168” market where the no of branches in rural area “1158” branch. is also increasing day by with huge competition to the ICICI bank in rural area and axis bank in the urban area with strong distribution channel and great marketing policies and plans HDFC has become the market leader. Add campaign as mention in promotion part is strong by both the traditional method and also digital platform where HDFC also involved in many CSR activity which is one sort of promotion for HDFC IT HAS INVESTED AROUND 535 CRORE . HDFC also promote women empowerment . Few CSR activities of these year- 7.8 Crore+ Beneficiaries of Parivartan 1.29 Crore Participants in the Financial Literacy Programmed 94,470+ Farmers trained through Holistic Rural Development Programme+9 This CSR activates helps the HDFC to make positive positioning in the mind of the society and help them to grow. 70

71. CHAPTER-5 SURVEY ANALYSIS 71

72. Credit card usage study Objective of the study Compulsive buying Personality traits materialism demographic Credit Card Spending Pattern Data Collection Primary Data Survey Secondary Data Literature Review 72

73. Compulsive buying Personality traits Demographic Materialism Shopping Addiction acquisition is necessary for happiness, the ownership and display of status  Age ,Gender Marital status Education, income level Conscientiousness, Agreeableness 73

74. Which age category do you belong to? What is your gender? What is your marital status? What is your highest educational qualification? What is your occupational status? How many credit cards do you own? Which Bank credit card do you use What is your monthly income Which of the following best defines your spending habit? Do you use your credit card while traveling to other countries? How frequently do you use credit card? How many credit card transaction do you make per day? How many credit card transaction do you make in month? Charges paid by you for credit card is should 45 day pay period should be increased? Do you use the credit card bonus point? Do you shop online using your credit card? Which of the following statement matches your credit card usage habits? How did you apply for the credit card? What type of credit card do you own? What is the category of the credit card you are currently using? Questionnaire 74

75. Response collected TOTAL RESPONSE COLLECTED- 50 75

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78. Cross Tabulation and Close Analysis of primary data collected Finding- In this graph four variable is used from demographic factor there are three and one from compulsive buying factor where according to age, gender , income and usage of credit card is medium in all group which shows that the customer have a neutral behavior towards the usage of credit card. 78

79. Finding – In this we can see that married people have more likely to use the credit card then the single one may the reason for such behavior will be change in the stage of life from single to married and usage increases. 79

80. Finding – Divorced people are a new segment to be explored by company as they are interested in online shopping and maximum of online shopping are done by credit card where as single and married people have a moderate use of credit card. 80

81. Findings – here the usage rate of for the credit card in travelling purpose is low and also if we seek for the user maximum male at age group of 19-25 and 26-35 are their specially the student are using the credit card for travelling purpose. 81

82. Finding –In this survey we can find that the charges paid is medium for HDFC bank where as other bank are moderate . 82

83. All over conclusion for the survey Youth use more credit card then the other age group . Married people are more often to use credit card in online shopping then the others New segment for divorcee can be included extra benefit can be provided to then to encourage using credit card People have moderate compulsives buying behavior with moderate use of credit card People use less credit while travelling where as student use it more if we closely compare the data . People are not so much satisfied by the charges they are paying for the credit card . Maximum people use bonus point on further transaction . In this survey also we find that maximum people have HDFC bank credit card. Male use more credit card then female Mostly people at least one credit card with them Online shopping is done more likely with the credit card people have more master cards and visa cards maximum of platinum type with them . 83

84. MARKETING PLAN PROPOSED Marketing strategy – as we are aware of the fact that HDFC bank is a market leader and second largest bank with strong marketing mix plan but this are few update marketing strategy that can be used by the HDFC Selling credit to customer like credit for any insurance policy Introducing credit card according demographic studies like in my survey I found many of then where student but using a credit card which may belong to their parents or their own but if a personalized segment will be introduce by HDFC for the student with better offers and less charges it would attract more customer towards it. Another finding was that marital status was also their where one more segment is there is divorcee segment some thing new can be brought by the bank for the divorcee segment in credit card a new offer on their credit like offers on travelling dinning or entertainment factor. Also married people use more credit card for online purchase then other new offers should be provided to them. Approaching and making contact to small to big dealers and ask them to encourage consumer more to use credit card . HDFC bank have good hold on rural area but credit card usage is low so they can introduce a card for the farmers and small MSME’s to encourage the use of credit card in rural area . 84

85. Promotional strategy New add campaign like which can direct connect with customer emotionally and provide some type of positive opinion in the mind of the customer . Using both digital and traditional platform to promote the its cards with small few second videos and creating a very distinguished identity for itself in the mind of the customer . Creating interesting jingeles and unique tunes which is common but they can bring some thing new this a well proven idea. Try to penetrate in rural market by some new interesting add related to rural area . Pricing strategy HDFC have little bit high charges compare to other bank so they can reduce the charge . they can also increase the pay back period of 45 days . Provide better deals to customer with good tie up with other companies . Credit card is the most prefferd card for online shopping so the pricing technique should be use in such a way that it would benefit both the customer and the bank also 85

86. Conclusion Indian banking sector is increasing day by day and has a huge potential in it with being digitalized and mobile banking and after the sector performance I will come to HDFC bank which I have to work it’s a market leader and out performing in and every segment it provide weather it debit card ,loan or credit card and after going to it balance sheet it growing every with strong hold on rural to urban areas .HDFC develops various plans for credit cards which would be convenient according to the requirements of its targeted market or customer and is thus beneficial to its customer in various ways. It provides various technology which increases the satisfaction level of its customers. Therefore the HDFC is one of the top 300 banks in the world. It is the 2 nd largest bank amongst all the banks of India. 86

87. Reference -sector information – ibef .org. in Company details – rbi.org.in Perfomance analysis – hdfc.in Markwting mix – notesmatic .com 87