A REPORT ON

Foreign Trade requirements &

opportunities in Commodity Sector

By

SAMEER JESWANI

15BSPHH010021

HDFC BANK LTD.

A REPORT

ON

Foreign Trade requirements &

opportunities in Commodity Sector

At

HDFC BANK LTD. (FOREX)

BY

SAMEER JESWANI

15BSPHH010021

A report submitted in partial fulfilment of the

requirements of MBA

Program of IBS, Hyderabad.

SUBMITTED TO:

FACULTY GUIDE COMPANY GUIDE

Professor Chethana G. Krishna Mr. Prarit Gupta

DATE OF SUBMISSION

08/05/2016

Page | 1

AUTHORISATION

This is to certify that this is a project report submitted in partial fulfilment of the requirements

of MBA program of IBS, Hyderabad. This report document titled “Foreign Trade

requirements & opportunities in Commodity Sector” is a submission of work done by Mr.

Sameer Jeswani as partial fulfilment of the requirement of MBA program of IBS Hyderabad.

This report has been formally submitted to Professor Chethna G. Krishna, Faculty Guide, IBS

Hyderabad and Mr. Prarit Gupta (Senior Trade Sales Manager), HDFC BANK LTD.

This report has been verified and authenticated by:

Professor Chethana G. Krishna Mr. Prasun Chakrabarti

Faculty Guide, IBS Hyderabad Territory Sales Head

Page | 2

ACKNOWLEDGEMENT

Managers are not born but made through proper guidance and motivation given from

time to time to work willingly and dedicatedly towards the fulfilment of a specific goal. I

realized this after successfully completing my summer internship project. Motivation plays a

great role in the success of any venture. I would like to take this opportunity to acknowledge

the people behind this endeavour and without whose support I wouldn’t have been able to

achieve this.

I would like to express my profound gratitude and deep regards to my faculty guide

Prof. Chethna G. Krishna, for her exemplary guidance, monitoring and constant

encouragement throughout the course of my internship. The blessing, help and guidance

given by her from time to time shall carry me a long way in the journey of life which I am

about to embark.

I also take this opportunity to express a deep sense of gratitude to my company guide,

Mr. Prarit Gupta (Senior Trade Sales Manager, HDFC Bank Ltd.) for allowing me to do

my summer internship project, providing cordial support, valuable information and guidance,

which helped me in completing this task through various stages. I am ever grateful to Mr.

Shyam Sharma (Regional Sales Head, HDFC Bank Ltd) & Mr. Prasun Chakrabarti

(Territory Sales Head, HDFC Bank Ltd.); I am obliged to the staff members HDFC Bank Ltd.

for their cooperation and the valuable information provided by them in their respective fields.

I would also wish to express my gratitude towards my institution IBS Hyderabad,

which has given me opportunity to gain corporate experience by working in HDFC BANK

LTD.

Lastly, I thank The Almighty, my parents, friends and well-wishers for their constant

encouragement without which this assignment would not have been possible.

Page | 3

EXECUTIVE SUMMARY:

Topic “Foreign Trade requirements and opportunities in commodity segment”

This report is prepared to submit in partial fulfilment of the requirements of MBA program of

IBS Hyderabad. The report is an attempt to understand foreign trade requirement and

opportunities in the commodity segment as well as to understand about the commodities

market with respect to foreign transactions.

The internship was conducted in HDFC Bank Ltd., a Bank that provides with a complete

knowledge of the FOREX market. Founded in August 1994, it has 4281 branches all across

the India and created value worth 18283.3 crores. The company is headquartered in Mumbai,

India.

Objective of the report is to study the commodities market with respect the Forex as well as

to check the trader’s preferred bank. A comparative study was also conducted between the

banks working in the same area to check the market share of the HDFC Bank so that to

formulate the policies and strategies that could help to increase the market share.

In the first phase of the study data was collected with the help of the Descriptive research

method i.e. by circulating questionnaire into the market especially to the Importers and

Exporters by visiting their shops on a daily basis. Week wise approach for the collection of

the data was used in which one week was allotted for every single market to be covered and

to understand that market. In this the second work was to generate the leads and fix the

meetings with the prospective client.

Second Phase was about the analysis of the data collected in the first phase from the market

for each bank, with the help of this data the market share for the each bank was calculated

and analysed to check which bank is the market leader in their respective markets.

While studying the methodology of foreign trade requirement and opportunities in

commodities segment, many limitations and difficulties came across which also helped in

better understanding of the work. Recommendations and limitations regarding the increase in

the market share have included as a part of analysis.

As the result till date, many meetings have been arranged that is beneficial to the bank

in order to increase their market share and out of those meetings some of them are

successful.

Page | 4

CONTENTS

S.NO. TOPICS PAGE

NO:

AUTHORIZATION 1

ACKNOWLEDGEMENT 2

EXECUTIVE SUMMARY 3

1. INTRODUCTION 1-2

INTRODUCTION OF PROJECT

OBJECTIVES OF THE PROJECT

METHODLOGY

SCOPE OF THE PROJECT

LIMITATIONS OF THE PROJECT

2. INDUSTRY ANALYSIS 3-5

BANKING INDUSTRY

TYPES OF BANKS

3. COMMODITIES MARKET 6-9

WHAT IS COMMODITIES

GROWTH OF INDIA IN COMPARISION TO OTHER

EMERGING NATIONS

CHALLENGES TO COMMODITIES MARKET

MARKET SHARE OF COMMODITIES IN VARIOUS

SECTORS

4. FOREX 10-12

WHAT IS FOREX?

REMITTANCE PROCEDURE

Page | 5

ROLE OF BANKS IN FOREIGN TRADE BY RBI

5. HDFC BANK LTD 13-18

HDFC BANK LTD

BUSSINESS FOCUS

SERVICES OFFERED

HDFC BANK COMPETITION IN MARKET

BCG MATRIX FOR HDFC BANK

SWOT ANALYSIS FOR HDFC BANK

6. PROJECT 19-33

APPROACH FOR WORKING ON PROJECT

METHODOLOGY

AGENDA AND POTENIAL CONTRIBUTION

FINDINGS

HDFC BANK FOREX MARKET ANALYSIS

7. ADDITIONAL RESPONSIBILITY 34

8. RECCOMENDATIONS 35

9. LEARNING FROM THE PROJECT 36

10. CONTRIBUTIONS TO HDFC 37

11. ANEXURE 38-40

QUESTIONNAIRE FOR TRADERS

QUESTIONNAIRE FOR ASSOCIATIONS

12. REFRENCES 41-42

Page | 6

TABLE OF FIGURES

TABLE OF FIGURES PAGE NO:

FIG 1.1: TYPES OF BANKS 4

FIG 1.2: STRUCTURE OF BANKING INDUSTRY 5

TABLE 2.1: TOTAL TRADED VOLUME 7

FIG 1.3: GROWTH OF INDIA IN COMAPARISON TO

OTHER EMERGING NATIONS

8

FIG 1.4: MARKET SHARE OF COMMODITIES IN

VARIOUS SECTORS

9

FIG 1.5: REMITTANCE PROCEDURE 11

FIG 1.6: HDFC BANK COMPETITION IN MARKET 15

FIG 1.7: BCG MATRIX 16

FIG 1.8: SWOT ANALYSIS 17

FIG 1.9: MARKET SHARE FOR HDFC BANK IN RICE

MARKET

26

FIG 2.0: MARKET SHARE FOR HDFC BANK IN

BOOKS MARKET

27

FIG 2.1.: MARKET SHARE FOR HDFC BANK IN

BEARINGS MARKET

28

FIG 2.2: MARKET SHARE FOR HDFC BANK IN DRY

FRUITS & SPICES MARKET

29

FIG 2.3: MARKET SHARE FOR HDFC BANK IN

PAPER MARKET

30

FIG 2.4: MARKET SHARE FOR HDFC BANK IN

ELECTRONICS MARKET

31

FIG 2.5: HDFC FOREX MARKET ANALYSIS 32

Page 1 of 51

1. INTRODUCTION

1.1 Introduction of the Project:

A Foreign exchange market is a market in which currencies are bought and sold. It is to

be distinguished from a financial market where currencies are borrowed and lent. Thus

foreign exchange market is not only the market for the broker to do transactions it is the

market in which the any person can go for transactions. Foreign exchange market is

described as an OTC (Over the counter) market as there is no physical place where the

participants meet to execute their deals. It is more an informal arrangement among the

banks and brokers operating in a financing centre purchasing and selling currencies,

connected to each other by tele communications like telex, telephone and a satellite

communication network, SWIFT.

1.2 Objective of the Internship:

The main purpose of undertaking this project was to understand the working of HDFC

Bank (Forex) Ltd.

To study the forex market in commodity sector.

To study the market position and strategy of HDFC bank in the forex with respect to

commodity segment.

Comparative analysis of different banks prevailing in the particular market on the basis of

their share

To provide with recommendation for future expansion of HDFC in forex market.

1.3 Methodology Used:

The sequential plan of action for the project was followed:

Collection of data from

a. Rice and pulses market (Importers and Exporters only).

b. Books market (Importers, Exporters and booksellers only).

c. Dry Fruits market & Spices market (Importers and Exporters only).

d. Bearings market (Importers and Exporters only).

e. Paper market (Importers and Exporters only).

f. Electronics market (Importers and Exporters only).

Statistical and descriptive analysis tools were used to draw a comparison between the

banks based in various aspects like growth rate, market share, consumers’ preference.

Come up with recommendations based on the analysis that could be of value to the

organization.

Conclusion.

Page 2 of 51

1.4 Scope of the Project:

The sources are realistic and data collection took place with the help of questionnaire.

The information collected about the commodity market is extended about the 10 years i.e.

from the financial year 2005-2014.

1.5 Limitation of the Project:

Being a new segment in the market it was difficult to determine the market share of

different banks in forex market as the information provided was not sufficient.

The policies and the services provided by private sector banks to its customers are

different from that of the public sector banks. These policies and services are directly

impacted by the changes in the micro and macro factors.

The data provided by the customers is one of the major constraints as the data given by

them is biased and also at times cannot be verified by authorities.

Lack in cooperation from the traders while collecting the data and also faced some of the

difficulties like no proper disclosure of the information, biased information etc.

Page 3 of 51

2. Industry Analysis

2.1 Banking Industry:

Banks are a financial institution that performs several functions like accepting deposits,

lending loans, agriculture and rural development etc. They play an important role in the

economic development of the country. It performs several functions like accepting

deposits, lending loans, agriculture and rural development etc. and also one important role

is the economic development of the country. It is necessary to encourage people to

deposit their surplus funds with the banks. These funds are used -for providing loans to

the industries thereby making productive investments.

The origin of western type commercial Banking in India dates back to the 18th century.

The story of banking starts from Bank of Hindustan established in 1770 and it was first

bank at Calcutta under European management. It was liquidated in 1830-32. From Bank

of Hindustan

In 1770, the evolution of banking in India can be divided into three different periods as

Follows:

Phase I: Early phase of primitive Indian banks to Nationalization of Banks in 1969

Phase II: From Nationalization of India banks in 1869 up to advent of liberalization

& banking reforms in 1991

Phase III: From Indian Financial and Banking Sector Reforms 1991 onward.

Indian banking industry is expected to witness better growth prospects in 2016 as a sense

of optimism stems from the Government’s measures towards revitalizing the industrial

growth in the country. In addition, RBI’s new measures may go a long way in helping the

restructuring of the domestic banking industry.

The Indian banking system consists of 26 public sector banks, 20 private sector banks, 43

foreign banks, 56 regional rural banks, 1,589 urban cooperative banks and 93,550 rural

cooperative banks, in addition to cooperative credit institutions. The Indian banking

sector’s assets reached US$ 1.8 trillion in FY14 from US$ 1.3 trillion in FY10, with 70

per cent of it being accounted by the public sector.

Total lending and deposits increased at a compound annual growth rate (CAGR) of 20.7

per cent and 19.7 per cent, respectively, during FY07-14 and are further poised for

growth, backed by demand for housing and personal finance. Total asset size of banking

sector assets is expected to increase to US$ 28.5 trillion by FY25. Deposits have grown at

a CAGR of 13.6 per cent during FY05–15 to an estimated US$ 1.48 trillion in FY15.

Deposit growth has been mainly driven by strong growth in savings amid rising

disposable income levels.

Page 4 of 51

2.2 Types of Banks:

Fig 1.1: Types of Banks

Commercial Banks:

According to the RBI, “Commercial Banks refer to both scheduled and non-scheduled

commercial banks which are regulated under Banking Regulation Act, 1949.”

Commercial banks operate on a ‘for-profit’ basis. They primarily engage in the

acceptance of deposit and extend loans to the general public, businesses and the

government.

Scheduled Banks:

To qualify as a scheduled bank, the paid up capital and collected funds of the bank must

not be less than Rs5 lakh. Scheduled banks are eligible for loans from the Reserve Bank

of India at bank rate, and are given membership to clearing houses.

Non-scheduled Banks

Non-scheduled banks by definition are those which are not listed in the 2nd schedule of

the RBI act, 1934. Banks with a reserve capital of less than 5 lakh rupees qualify as non-

scheduled banks. Unlike scheduled banks, they are not entitled to borrow from the RBI

for normal banking purposes, except, in emergency or “abnormal circumstances.” Jammu

& Kashmir Bank is an example of a non-scheduled commercial bank.

TYPES OF BANKS

Scheduled Bank

Commercial Bank

Non-scheduled Bank

Cooperative bank

Regional Rural Bank

Page 5 of 51

Co-operative Banks

Co-operative banks operate in both urban and non-urban areas. All banks registered under

the Cooperative Societies Act, 1912 are considered co-operative banks. These are banks

run by an elected managing committee with provisions of members’ rights and a set of

“communally developed and approved bylaws and amendments.”

Regional Rural Banks

Regional Rural Banks or RRBs, simply put, serve the rural areas and agricultural sectors

with basic banking and adequate financial services. They were set up in 1975, based on

the recommendations of a committee. Based in Moradabad, Prathama Bank, established

on 2 October 1975, is the first RRB to open in India. It was sponsored by Syndicate Bank.

The RRBs are owned by the central government (50%), the state government (15%) and

the sponsor bank (35%). Several commercial banks have sponsored RRBs. Prominent

examples include the Maharashtra Gramin Bank (sponsored by the Bank of Maharashtra)

and the Himachal Gramin Bank (sponsored by Punjab National Bank). RRBs were set up

to eliminate other unorganized financial institutions like money lenders and supplement

the efforts of co-operativebanks.

Fig 1.2: Structure of Banking Industry

Page 6 of 51

3. Commodities Market

3.1 What is Commodities?

Commodity is a marketable item produced to satisfy wants or needs. Often the item

is fungible. Economic commodities comprise goods and services. India, a commodity

based economy where 2/3rd

of the population of the one billion population depends on

agricultural commodities, surprisingly has an under developed commodity market. India

is among the apex producers of a number of commodities and has a long history of

trading in commodity derivatives. In recent years these restrictions have been removed

for the smooth functioning of commodity trading. Commodity market has occupied

imperative position in Indian economy since the establishment of Forward Market

Commission in April 2003. There are five national and sixteen regional commodity

exchanges recognized and regulated by this Commission. Different types of commodities

such as industrial, agricultural; bullion, plantation etc. is traded on commodity exchanges

in the country. So considering these points an attempt has been made to know the

regulatory framework of commodity futures market in India and to present the various

developments in Indian commodity derivative market and commodity exchanges.

Over the ages, commodities have been the basis for trade and industry. Today, they play a

very important role in the world economy with billions of dollars of these commodities

traded each day on exchanges across the world.

Leading commodity markets of world

Some of the leading exchanges of the world are New York Mercantile Exchange

(NYMEX), the London Metal Exchange (LME) and the Chicago Board of Trade

(CBOT).

Leading commodity markets of India

The government has now allowed national commodity exchanges, similar to the BSE &

NSE, to come up and let them deal in commodity derivatives in an electronic trading

environment. These exchanges are expected to offer a nation-wide anonymous, order

driven; screen based trading system for trading. The Forward Markets Commission

(FMC) will regulate these exchanges.

Page 7 of 51

Total Traded Volumes by 2015:

Table 2.1: Total Traded Volume

(Source: qz.com)

As, from the above table we could see that in the starting years i.e. from 2004-05 there

was just about 5.7 (lakh crore INR) and it is in the descending order with the years

passing by it is increasing but in the year 2012-15 if we could see that there is a fall in the

traded amount of the commodities due to the change in the rules and regulations of the

Indian and also because of the change in policies and also there was a recession in the

Indian markets This led to the decline in the trading of the commodities as people were

not having jobs so that they could buy a high amount of livelihood from the market.

Page 8 of 51

3.2 Growth of India in comparison to the other emerging nations:

Growth in India’s agricultural exports has exceeded the rise in exports of other products.

Over the past few years, these products have consistently seen a rise in their share in the

export basket, primarily due to the huge stocks resulting from bumper output, as well as

favourable government policies. According to data from the commerce ministry, in 2010-

11, agricultural exports stood at $17.35 billion, in 2011-12 $27.43 billion, in 2012-13

$31.86 billion and in the first 11 months of 2013-14, it stood at $29.3 billion.

During this four-year period, overall exports recorded 93 per cent growth. The share of

agricultural commodities in India’s overall export basked rose to 10.66 per cent in 2012-

13 from 7.06 per cent in 2009-10.

Fig1.3: Growth of India in comparison to the other emerging nations

(Source: Economy Watch)

According to the World Trade Organization, global export and import of agricultural and

food products stands at $1.66 trillion and $1.82 trillion, respectively, of which India’s

shares are 2.07 per cent and 1.24 per cent’, respectively. This indicates India is a net

exporter of agricultural products. The country ranks 10th in terms of global agricultural

and food exports. Among agricultural commodities, exports of basmati rice have risen 46

per cent to $3.47 billion in the first nine months of this financial year, compared with

$2.37 billion in the year-ago period. Exports of non-basmati rice rose seven per cent to

$2.13 billion in the April-December 2013 period from $1.99 billion in the year-ago

period. Exports of dairy products recorded 138 per cent growth in April-December 2013

at $435.93 million, against $183.24 million in the corresponding period last year. Due to

declining global wheat prices, India’s realization from wheat exports fell 5.24 per cent —

from $1.24 billion to $1.17 billion. According to market experts, India is an important

centre for spices producing more than 2.7 million tons of spices out of which it exports

about 8-10%.

India's share in world trade of spices is about 40-50% in volume terms and 25% in value

terms. India's demand and supply play an important role in the world market. The world’s

major producers of pulses are India (23.1%), Canada (6.7%), China (12.08%), Myanmar

(7.57%), and Brazil (4.03%), which together account for half of the global output.

Page 9 of 51

3.3 Challenges to Commodities Market:

The country, being strongly agriculture based has to contend with the long-term decline

and short term volatility of real commodity prices on international markets. The long-

term decline in real prices reflects the tendency for productivity and production to grow at

a faster rate than demand, leading to over-production which hampers the price provided to

the farmers. Whereas the volatility reflects the impact of exogenous factors such as

weather on our production of commodities. These problems are exacerbated by market

distortions, tariffs and subsidies in developed countries, tariffs in developing countries

and the market power in some commodity supply chains of large transnational

corporations. These distortions also limit our access to lucrative markets and hinder

attempts to secure a greater share of the final product price on the part of our producers

and exporting community. However, with the help of capacity building, mobilization of

resources for supporting promotion campaigns, designing programs for insuring farmers

from the price shocks, improving flow of information and increasing the investments our

country can overcome these barriers and challenges.

3.4 Market share of commodities in various sectors:

Fig 1.4: Market share of commodities in various sectors

(Source: Reuter India)

Page 10 of 51

4. Forex Market

4.1 What is FOREX?

Forex is a commonly used abbreviation for "foreign exchange," and it is typically used to

describe trading in the foreign exchange market by investors and speculators.

For example, imagine a situation where the U.S. dollar is expected to weaken in value

relative to the euro. A forex trader in this situation will sell dollars and buy euros. If the

euro strengthens, the purchasing power to buy dollars has now increased. The trader can

now buy back more dollars than they had to begin with, making a profit.

This is similar to stock trading. A stock trader will buy a stock if they think its price will

rise in the future and sell a stock if they think its price will fall in the future. Similarly, a

forex trader will buy a currency pair if they expect its exchange rate will rise in the future

and sell a currency pair if they expect its exchange rate will fall in the future.

In March 2006, about half (48%) of the transactions were spot trades, while swap

transactions (essentially repurchase agreements with a one-way transaction – spot or

forward – combined with a longer- horizon forward transaction in the reverse direction)

accounted for 34% and forwards and forward cancellations made up 11% and 7%

respectively. About two-thirds of all transactions had the rupee on one side. In 2004,

according to the triennial central bank survey of foreign exchange and derivative markets

conducted by the Bank for International Settlements (BIS (2005a)) the Indian Rupee

featured in the 20th position among all currencies in terms of being on one side of all

foreign transactions around the globe and its share had tripled since 1998. As a host of

foreign exchange trading activity, India ranked 23rd among all countries covered by the

BIS survey in 2004 accounting for 0.3% of the world turnover. Trading is relatively

moderately concentrated in India with 11 banks accounting for over 75% of the trades

covered by the BIS 2004 survey.

The Indian rupee has had a remarkably stable relationship with the US dollar. Meanwhile

the dollar appreciated against major currencies in the late 90’s and then went into an

extended decline particularly during 2003 and 2004. The lock-step pattern of then US

dollar and the Rupee is best reflected in the movements in the two currencies against a

third currency like the Euro. The correlation of the exchange rates of the two currencies

against the Euro during 1999-2004 was 0.94. Several studies have established the pegged

nature of the rupee in recent years.

Page 11 of 51

4.2 Remittance Procedure

Fig 1.5: Remittance Procedure

(Source: ICICI BANK)

4.3 Role of banks in foreign trade by RBI:

Banks should ensure that imports into India are in conformity with Foreign Trade Policy

in force and Foreign Exchange Management (Current Account Transaction) Rules 2000

and Directions issues by RBI under Foreign Exchange Management Act, 1999 from time

to time.

Rules and regulations to be followed by banks:

Rules and regulations to be followed by banks from foreign exchange angle while

undertaking import payment transactions are set out in this section. Where specific

regulation does not exist, banks may be governed by normal trade practices and

particularly KYC guidelines.

Banks may freely open letters of credit and allow remittance for import freely for all

items falling in the category "Free" in ITC (HS). For other restricted items, banks should

ask the importer to produce exchange control copy of the import licence issued by DGFT

office and all conditions in the licence should be adhered into while opening L/C or

remittance is made.

Time limit for settlement of import payment in normal cases is maximum 6 months from

the date of shipment, except amount withheld towards guarantee of performance etc.

Page 12 of 51

In case of deferred payment arrangements, procedure laid down in external commercial

borrowing and trade credits will apply.

Third party payment for import transaction is dealt with in para B.7 of the M.D.

In this case, supply of goods is made by one party but payment is to be made to a third

party as per the contract. 5 conditions apply in such cases.

Third Party Payment for Import Transactions

AD category I banks are allowed to make payments to a third party for import of goods,

subject to conditions as under:

a. Firm irrevocable purchase order/tripartite agreement should be in place. However this

requirement may not be insisted upon in case where documentary evidence for

circumstances leading to third party payments/name of the third party being mentioned in

the irrevocable order / invoice has been produced.

b. AD bank should be satisfied with the bonafides of the transactions and should consider

the Financial Action Task Force (FATF) Statement before handling the transactions;

c. The Invoice should contain a narration that the related payment has to be made to the

(named) third party;

d. Bill of Entry should mention the name of the shipper as also the narration that the

related payment has to be made to the (named) third party;

e. Importer should comply with the related extant instructions relating to imports

including those on advance payment being made for import of goods.

Page 13 of 51

5. HDFC Bank

5.1 HDFC Bank Ltd.:

HDFC Bank Limited is an Indian banking and financial services company

headquartered in Mumbai, Maharashtra. It has about 76,286 employees including 12,680

women and has a presence in Bahrain, Hong Kong and Dubai. HDFC Bank is the second

largest private bank in India as measured by assets. It is the largest bank in India by

market capitalization as of February 2016. It was ranked 58th among India’s most trusted

brands according to Brand Trust Report, 2015. 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

RBI’s liberalization 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.

Total balance sheet size as of December 31, 2015 was Rs. 687,892 crores as against Rs.

534,855 crores as of December 31, 2014. The Bank’s total income for the quarter ended

December 31, 2015 was Rs.18, 283.3 crores, up from Rs.14, 930.7 crores for the quarter

ended December 31, 2014. Net revenues (net interest income plus other income)

increased by 20.7% to Rs. 9,940.7 crores for the quarter ended December 31, 2015 as

against Rs. 8,234.8 crores for the corresponding quarter of the previous year.

The Bank also has a network of 11,515 ATMs across India. HDFC Bank’s ATM network

can be accessed by all domestic and international Visa / MasterCard, Visa Electron /

Maestro Plus / Cirrus and American Express Credit / Charge cardholders.

5.2 Business Focus:

HDFC Bank’s mission is to be a World Class Indian Bank. The objective is to build

sound customer franchises across distinct businesses so as to be the preferred provider of

banking services for target retail and wholesale customer segments, and to achieve

healthy growth in profitability, consistent with the bank’s risk appetite. The bank is

committed to maintain the highest level of ethical standards, professional integrity,

corporate governance and regulatory compliance. HDFC Bank’s business philosophy is

based on five core values: Operational Excellence, Customer Focus, Product Leadership,

People and Sustainability

Page 14 of 51

5.3 Services offered by HDFC Bank:

HDFC Bank caters to a wide range of banking services covering commercial and

investment banking on the wholesale side and transactional / branch banking on the retail

side. The bank has three key business segments:

Wholesale Banking

The Bank’s target market is primarily large, blue-chip manufacturing companies in

the Indian corporate sector and to a lesser extent, 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 finance,

trade services, transactional services, cash management, etc.

The bank is also a leading provider of structured solutions, which combine cash

management services with vendor and distributor finance for facilitating superior

supply chain management for its corporate customers. Based on its superior product

delivery / service levels and strong customer orientation, the Bank has made

significant inroads into the banking consortia of a number of leading Indian

corporates including multinationals, companies from the domestic business houses

and prime public sector companies.

It is recognized as a leading provider of cash management and transactional banking

solutions to corporate customers, mutual funds, stock exchange members and banks.

Treasury

With the liberalization of the financial markets in India, corporates need more

sophisticated risk management information, advice and product structures. The bank

has major three main products - Foreign Exchange and Derivatives, Local Currency

Money Market & Debt Securities, and Equities.

These form a fine pricing on various treasury products that 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.

Page 15 of 51

Retail Banking

The objective of the Retail Bank is to provide its target market customers a full range

of financial products and banking services, giving the customer a one-stop window

for all his/her banking requirements. The products are backed by world-class service

and delivered to customers through the growing branch network, as well as through

alternative delivery channels like ATMs, Phone Banking, Net Banking and Mobile

Banking.

The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank

Plus and the Investment Advisory Services programs have been designed keeping in

mind needs of customers who seek distinct financial solutions, information and advice

on various investment avenues. The Bank also has a wide array of retail loan products

including Auto Loans, Loans against marketable securities, Personal Loans and Loans

for Two-wheelers. It is also a leading provider of Depository Participant (DP) services

for retail customers, providing customers the facility to hold their investments in

electronic form.

HDFC 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 2015, the

bank had a total card base (debit and credit cards) of over 25 million. The Bank is also

one of the leading players in the “merchant acquiring” business with over 235,000

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

establishments. The Bank is well positioned as a leader in various net based B2C

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

Loans, Bill Payments, etc.

5.4 HDFC Bank Competition in Market:

Fig 1.6: HDFC Bank competition in market

(Source: HDFC BANK)

Page 16 of 51

5.5 BCG Matrix for HDFC Bank:

Fig 1.7: BCG Matrix for HDFC BANK

(Source: NetMBA.com)

HDFC Bank stands at Star position in the BCG Matrix. As HDFC bank have the high

market growth and they also have high market share. There is lot of growth potential for

the banking industry because of increasing disposable income of customers, increasing

working class, more volatility in other markets and also increasing awareness for the

savings.

In Insurance sector HDFC stands on the Star position as because of the high market

growth rate as well as the high market share. So there is good opportunity for investment.

In mutual Funds HDFC stands at cash cow. This shows that HDFC has high market share

and low growth rate in mutual funds. This means that we should only focus on profitable

products and try to investment on those products which are low market growth rate but

perform well if proper investment is there.

In Forex sector HDFC stands on question mark. This shows that HDFC has high market

growth rate and low market share in Forex. This means that we should focus on

generating the high market share as there is high potential available in the market which

help the bank to generate the high profit from the market.

Page 17 of 51

5.6 SWOT Analysis of HDFC Bank:

Fig 1.8: SWOT Analysis for HDFC Bank

Strength:

HDFC Bank being one of the leading Bank has a brand image as well as being an

Indian Bank have the full knowledge about the Indian Markets.

HDFC Bank has collaboration with the big corporates for their salary accounts which

account for the good amount of revenue for the Bank.

The best part of the trade services is that in comparison to the competitors the bank

provided with a best rate in the markets.

Being the leader in the KSA value bank has also its presence with the good amount of

the customer base.

Strengths:

Brand power and good knowledge of the Indian markets.

Has collaboration with big corporates.

Better rates for remmitances (inward or outward)

Good customer base

Low transaction cost

Weakness:

Lesser branches offering the Trade services.

High Attrition rate.

Minor hindrances in completing the trade proceudres.

Opportunities:

Increase in number of branches providing trade facility.

Mapping the market will certainly increase the market share

People are becoming more service oriented.

Threats:

Foreign banks with different kind of services and deep pockets.

Future economic condition may further slowdown

Tightening in the policy of the RBI

From various government and private sector banks.

SWOT

Page 18 of 51

Weakness:

There are only few branches which are only able to provide with the Retail and

Foreign Trade services to the customers in the particular area.

HDFC Bank with the high Attrition rate in the market and with a huge customer base

is not able to provide with services to the customers properly as expected by the

customers.

Various problems are faced by the customers in completing the remittances procedure

as it requires a huge documentation.

Opportunities:

To increase the market share for the bank, branches providing with the trade and forex

facility should be incorporated so that the work for the customer becomes easier and

also faster.

Increase in the number of the competitors day by day in the market leads to decline

the share of the bank, so for that reason the market mapping should be done to

understand the working of the market.

Due to the change into the global trends for the business, people are shifting towards

the services as they are demanding for the services rather than the any other facility.

Threats:

With increase in the FDI in Indian Banking sector, which provides the foreign banks

an entry to the Indian markets with the different schemes and investment options for

the customers and not only this but also provided with the services.

Due to the change in the economic conditions of the country, there may be a slow

down into the trade between countries which could affect the growth of the HDFC

bank and also the transactions between the different banks.

New framing of the policies by the RBI affects the transactions and makes the

documentation procedure tough affecting the transactions between the bankers.

Due to the increase in the number of the private sector banks as well as the

government banks affect the customer base of the HDFC and provide the high

probability of the present client to shift.

Page 19 of 51

6. Project:

Commodities is one the market in which the daily use commodities are traded and also

those commodities are traded which are irrespective of the economy are still required in

the daily needs of the person. For a country like India, which is an import based country

as well as the country which is majorly dependent on the agricultural products, the

fluctuations in the currency market shows direct effect on the country’s spending.

This nature of the work and the project has been divided into two phases. These two

phases describe about the nature of work which has been done till date and the progress of

the project so far covered.

First Phase, of the project tells about the market which is needed to be covered and to find

the prospects in that market. This phase involves fully about the data collection and also

about the prospects search in that market which could shift from their existing bank to us.

To collect the data in the following phase week wise approach for the same is followed in

which different markets were visited for the collection of the data and also for the search

of new prospects.

6.1 APPROACHES FOR WORKING ON THE PROJECT

WEEK WISE WORK DONE:

6.1.1 WEEK 1 (24 February – 29 February):

Understanding about the FOREX as well as of the market to be tapped.

Project Topic: Foreign Trade Requirements and opportunities with respect to Chandini

Chowk Area, Delhi.

The first week was spent introspecting on the topic and understanding about the market

and also about the FOREX for this project. At the end of the week the commodities and

the market was decided in which the market research and the search for the new prospects

will take place. The purpose of the project was to collect the data on the market share of

the HDFC Bank with respect to the competitor’s as well as to find the prospects for the

Banks.

Page 20 of 51

The reasons behind working on this project are two-fold:

It is a great opportunity to work with one of the leading Banks and to understand the

market which is still not fully captured. It provides a great amount of exposure and

knowledge not just in sales but also with the Foreign Trade.

Being, a market which is still not fully tapped and still the customers are left to be tapped

in to market would benefit the duration of Summer Internship `most appropriately.

6.1.2 WEEK 2 (1 March – 5 March):

Data Collection from Rice & Pulses Market (Naya Bazaar)

Naya Bazaar market being a huge market took up the whole of week to capture the

clients and also to understand the market as this market covers the Rice and pulses traders

who are importing and exporting to the outside countries. Throughout 2nd

week in the

Naya Bazar Market, went to the shop to shop, spending time with the traders, convinced

them to cooperate, and collected data on the following heads:

a) Shop Name

b) Contact Number

c) Shop Address

d) Nature of Business

e) Commodity dealing with

f) Market Size

g) Currently Banking

h) Terms of Payment

i) Limits (If any)

j) Amount of Limits.

k) Reasons for satisfaction/Dissatisfaction with their Banks.

l) Imports/Exports

Note: The data collection was restricted only to Traders Importers and Exporters (no

malls and super markets). Thus the shop type is the categorization of the shop- Importers

or Exporters.

Outcome:

Responses: 30 clients

Prospects: 10 clients

Deals converted: None

Page 21 of 51

6.1.3 WEEK 3 & 4 (7 March – 14 March):

Data collection from the Books Market (Daryaganj Market)

Daryaganj Market being a huge market is entirely a market which is full of Books

publishers and Publishing houses and also with the Traders which are importing and

exporting the foreign books. Throughout the 3rd

week the data was collected into the

market as well as met some of the existing clients of the HDFC bank.

The First day of the 4th

week was also devoted in the same market as the market is big so

wasn’t able to cover the market in one week and some new prospects were also found

with whom the meeting was fixed for Monday (14-3-2016).

Outcome:

Responses: 30 clients

Prospects: 4 clients

Leads Generated: 2

Deals converted: Meeting with one lead in progress as one meeting is done with them on

follow up.

6.1.4 WEEK 4 & 5 (15 March – 22 March):

Data collection form the Bearings Market (Ajmeri gate Market)

Ajmeri Gate Market is entirely the Bearings as well as the Power Tools market in which

the Traders are importing the Bearings from the outside countries and are supplying it to

the domestic markets. The same activity as first three weeks was repeated in these two

markets and the data collected were arranged in an excel sheet and the data was submitted

for scrutiny to the company mentor as the new prospects will be seen and analysed from

that sheet only.

Page 22 of 51

Outcome:

Responses: 30 clients

Prospects: 5 clients

Leads Generated: 3

Deals converted: Meeting with clients in progress.

6.1.5 WEEK 6 & 7 (27 March – 8 April):

Data collection form the Dry Fruits & Spices Market (Katra Ishwar Bhawan Market)

Katra Ishwar Bhawan Market is one of the biggest and the main market which have

around 5000 plus Traders who are into the business of the Imports and Exports of the Dry

Fruits, Spices, Herbs etc. The same activity as first five weeks was repeated in these four

markets and the data collected were arranged in an excel sheet and the data is submitted

for scrutiny to the company mentor as the new prospects will be seen from that sheet only

and also some new leads were also generated for the future growth of the bank.

The motive behind the work done is to use the data that has been collected so far and the

collection which is in process is to identify key features of the potential existent market

for the Bank under study, using select statistical tools and other relevant analytical

techniques.

Outcome:

Responses: 30 clients

Prospects: 16 clients

Leads Generated: 10

Deals converted: Meeting with the clients was done and also two leads were converted

and one lead is still in progress. 8 more leads are generated and meeting in progress.

6.1.6 WEEK 8 (11th

April-16th

April):

Data collection form the Paper markets (Chawri Bazar market)

Chawri Bazar market is entirely a Paper, Books as well as Cards market. This is the

markets which has a large number of the wedding cards printing press as well as have the

paper importers form across the world. The paper market is not as large as the other

markets. The same activity was followed but in this market the major work was to tap the

new clients and also to find the prospects for the bank which could be our future clients.

Page 23 of 51

Outcome:

Responses: 30 clients

Prospects: 5 clients

Leads Generated: 2

Deals converted: Meeting with one lead in progress as one meeting is done with them e

and one more lead in progress as one meeting is done.

6.1.7 WEEK 8 (18th

April-30th

April):

Data collection form the Electronics markets (Bhagirath Palace and Lajpat Rai market)

Bhagirath Palace and Lajpat Rai market are one of the biggest markets in Chandini

Chowk and also famous for all the electronics and watches. This market has been ranked

as one of the biggest and famous market for electronics supplies and fancy lights. The

same activity was carried into this market also. The data has been complied for the same

and is being analyzed to check the market share.

Outcome:

Responses: 30 clients

Prospects: 5 clients

Leads Generated: None

Deals converted: None

Second Phase, of the project involved about the analysis of the data collected from the

market. This phase helps to generate the recommendation which could be made to the

bank for increasing their market share and also help them to work on the services which

have been provided to them. This phase also will analyse about the growth of the HDFC

Bank in the market and will support them to increase their share in comparison to the

other and also will help to look in what and in which area they are lacking from other

competitor’s.

Page 24 of 51

6.2 METHODOLOGY

In this project the fundamental of Business Research Modelling was used - Survey

method using the questionnaire as a tool for data collection and done a shop to shop

survey to collect data on country dealing with which bank, limits, Imports or not, etc.

6.3 AGENDA & POTENTIAL CONTRIBUTION:

Obtaining the:

Segregation of the market on the basis of the services so provided by their Banks in

comparison to HDFC Bank.

SWOT analysis of the bank in comparison to the other Banks.

Finding the prospects for the Banks which could shift from other banks to HDFC

Banks.

Checking the market share of the Bank with the other Banks.

Customer satisfaction wise segregation of the market which includes their level of

satisfaction while banking with the HDFC Bank and while banking with any other

bank.

Page 25 of 51

6.4 FINDINGS

BASIC SAMPLE CHARACTERISTICS

The sample is Commodities market- based.

In tune with India’s commodity markets, an overwhelming majority of respondents

are traders.

Given the high proportion of traders in the sample, it is unsurprising that all the

respondents are into the international transaction.

Also in tune with the growth of the commodities like dry fruits, rice, pulses etc.

imports as well as the exports for the same amount was less for the previous year.

The number of international traders and domestic traders are significant even though

the former is in overwhelming majority in the sample.

Maximum of the clients are dissatisfied with services so provided the Bank.

The commodities market growth and decline depends upon the government policies

and also on the RBI restrictions.

The size of the sample is 30 respondents for every market.

MARKET BASED ANALYSIS:

Rice & Pulses Market:

Fig 1.9: Market share for HDFC Bank in Rice and pulses market

29%

40%

20%

11%

Rice & Pulses market

HDFC Bank

Kotak mahindra bank

ICICI BANK

Others( central bank, sbi,trade and mercandile bank,Central bank, Andhar bank)

Page 26 of 51

Among the respondents we could see that all the respondents are the importers as well

as the exporters and are into the foreign transactions.

The market share for HDFC Bank (29%) in comparison to the top leader which is

Kotak Mahindra Bank (40%) is less, thus looking at the market share of the ICICI

Bank (20%) which is also less in comparison to the other two banks.

The market share of HDFC could be increased for the Rice market by providing the

better services as well as the personalized services to the clients in whom the Bank

lacks.

Other banks which include (Axis Bank, Tarde and mercantile bank, Andhra bank

etc.) are also trying out the way to increase the market share in the particular market.

This analysis is based on sample size of 30 respondents which all are the importers

and exporters in the particular market.

Page 27 of 51

Books Market:

Fig 2.0: Market share for HDFC Bank in Books market

Among the respondents we could see that the market is full of the publishers

as well as the top leading importers which supplies books not only to the

North but the whole of the India.

The market share of HDFC Bank (23%) is low into the market as the major

player into the market is Axis Bank (33%) and also ICICI Bank (30%) is

giving the tough competition in the same market.

The other banks like Yes Bank has also tried its good penetration into the

books market and trying to acquire the good amount of customer by providing

the better rates and services.

This analysis is based on sample size of 30 respondents which all are the

importers and exporters in the particular market.

23%

30%

33%

14%

Books Market

HDFC Bank

ICICI Bank

Axis Bank

Other( UBI, YES Bank, Denabank, Kotak mahindra, PNBetc.)

Page 28 of 51

Bearings Market:

Fig 2.1: Market share for HDFC Bank in Bearings market

Among the respondents we could see that the market is full of the Manufacturers,

Domestic traders as well as of the Importers of the bearings and power tools and

supplies across India.

The market is headed by Axis Bank (33%) as the leader in the bearings market as well

as the market share of the ICICI Bank (30%) is also quite high as compared to the

market share of HDFC Bank (23%).

Other Banks which includes Yes Bank, Union Bank of India, Dena Bank, Kotak

Mahindra Bank etc. has a share of (14%).

This analysis is based on sample size of 30 respondents which all are the importers

and exporters in the particular market.

19%

31%

19%

31%

Bearings Market

HDFC Bank

Axis Bank

ICICI BANK

Others( UBI, SBI, Kotakmahindra, Yes bank)

Page 29 of 51

Dry fruits & Spices Market:

Fig 2.2: Market share for HDFC Bank in Dry Fruits market

The proportion of respondents in the market is importers of the dry fruits and also for

the spices.

Majority of the market is under Axis Bank with 33% of the total number of the

respondents.

Whereas in the same market HDFC bank holds the market share for 26 % in

comparison to the other banks it has a good penetration in the market but need to get

still more on it.

Other bank includes Yes Bank, State bank of Bikaner, Union Bank of India etc. hold

19% of the total market share.

This analysis is based on sample size of 30 respondents which all are the importers

and exporters in the particular market.

26%

22% 33%

19%

Dry Fruits and Spices Market

HDFC Bank

Canara Bank

Axis bank

Others( UBI, Kotak mahindrabank, ICICI ,PNB)

Page 30 of 51

Paper Market:

Fig 2.3: Market share for HDFC Bank in Paper market

This market is not that big as compared to the other markets but the numbers of

the respondents are more of the domestic wholesalers of the paper and less are the

Importers.

The market share for the HDFC Bank is (27%) which is low as compared to the

market leader Oriental Bank of the commerce (30%).

Other Banks are also in competition which includes Union bank of India, Yes ban,

State Bank of India etc. (23%)

This analysis is based on sample size of 30 respondents which all are the

importers and exporters in the particular market.

27%

30%

20%

23%

Paper Market

HDFC Bank

OBC Bank

Punjab National Bank

Others ( UBI, SBI, YES BANK,AXIS BANK)

Page 31 of 51

Electronics Market:

Fig 2.4: Market share for HDFC Bank in Electronics market

Among the respondents we could see that the market is full of Importers which are

importing the Lights, Led Bulbs, Tv spare parts, speakers.

The market share for HDFC Bank (17%) is low than the other Banks into the same

market with respect ICICI Bank (33%) which is one of the leaders into the market.

The market share for Kotak Mahindra Bank (16%) is also near to HDFC bank.

Other bank includes Yes bank, Axis bank, Syndicate bank, ING Vysa bank (34%)

which is giving the tough competition to HDFC Bank in the same market.

This analysis is based on sample size of 30 respondents which all are the importers

and exporters in the particular market.

17%

33%

16%

34%

Electronics Market

HDFC BANK

ICICI Bank

Kotak Bank

OTHERS ( Yes bank, axis Bank,syndicate bank, canara bank, Ingvysa)

Page 32 of 51

6.5 HDFC BANK FOREX MARKET ANALYSES:

Fig 2.5: Market share for HDFC Bank of whole market

(Source: HDFC Report 14-15)

HDFC Bank being one of the top leading banks in the world with the highest amount of the

customer base which accounts almost for the 4520 branches all over the world making its

presence into the global scenario also. The Bank generates 90 percent of the profits from

customer segments, thus making a bank larger than any other bank in India. From the above

the Graph it is clear that the Revenues generated from the Foreign Exchange is less as

compared to the year 2013-14 and also in the year 2015-16 the revenue was not as compared

to the year 2013-14. Despite of its presence on a large scale in the Banking Industry it is not

able to generate the good amount of revenues from the foreign exchange markets and also not

able to utilise its customer base to the full extent.

The reasons for the downfall in the revenues are:

Government Policies: Changes in the government policies and the procedure after the

Bank of Baroda Scandal which made the remittances procedure more tough and strict.

Competition: Increase in the competition into the market which leads to decrease into the

revenues so generated out of the particular products.

Page 33 of 51

Fall in the prices: The commodities which are being traded into the international markets

and the prices for the same have fallen into the importing countries which will

automatically lead to the fall in the revenues.

Services: The revenues also fall due to not providing the services accordingly as

promised by earlier and also these services led to the shift of the client to the other bank.

The above factors state the decline in the fall of the revenues of the HDFC Bank forex in

the year 2014-15 and 2015-16 as compared to the year 2013-14. The Bank face a major

challenge in handling the customer base and provide them with the services which were

promised to them at the time of the opening of the account. In the year 2014-15 the bank

generated the revenue of Rs. 10280 Million as compared to the year 2013-14 which was

approximately Rs. 14500 Million. In the year 2015-16 the bank was also not able to

generate the revenue as in the year 2013-14 but it was more than in the year 2014-15

which made an increase of about 19.4%

Page 34 of 51

7. Additional Responsibilities

During the regular working hours of the office, various other responsibilities where

undertaken beside the project. The various work undertaken are mentioned in brief

below-

Handling the trading account: Various trading accounts of the clients were handled and

all trades done where maintained in details. At the end of the financial year, a complete

financial report was prepared for all the accounts.

Opening of Accounts: The leads which were generated for the forex transactions for the

completion of the procedure the accounts for the same was to be opened which was

opened with the help of ABM in the Branch.

Meeting with the associations: In the last days of the internship, was provided with the list

of the 43 associations which belongs to the Chandini Chowk area, as an intern was asked

to fix the meeting with the Presidents of the associations regarding the markets mapping

and also to collect the Directory.

Sales: As a one of the member of the team, the responsibility was to get the prospect

clients for the bank that are ready to work with us and also to fix the meetings with the

clients so that they could be convinced to shift from their banks.

Presently the task being performed is of sales under which contacting the potential client

through tele-calling and give them two free trials are made. If the client agrees to take the

service, then discussion regarding the package with the client takes place.

Page 35 of 51

8. Recommendations

The primary attention of market segmentation, target and positioning should be its old

customers, preferentially traders, as these customers can help in providing bank with

new clients.

HDFC Bank is not the market leader in the commodities as Axis Bank, ICICI Bank

etc. have a good hold into the market.

Proper market mapping should be done to understand the reasons for the larger

market share of the other banks than HDFC and also to provide the solution for the

same.

Services so promised by the Bank are not delivered to the customer at the very end

which makes the customer shift from existing bank to the other banks leading to the

decline in the market share of the HDFC and increasing the market share of the

competitors.

The revenue generated from the Foreign exchange transactions have declined from

the year 2013-14 to 2015-16 because of increase in the market share of the

competitors.

Documentation procedure should be made understood properly, so that there is a no

delay in the completion of the remittance procedure.

With the increase in the digitalization in Indian Banks, the remittance procedure

should be made online to reduce the time gaps between the transactions and also to

increase the ease of work.

New strategies and approach like getting associated with respective traders

association, having a proper and rigorous follow up of the leads generated, will help

in improving market share of the bank.

Page 36 of 51

More emphasis on the services and providing the best rates into the market would

help to increase the market share of the Bank as the majority of the respondents are

dissatisfied with the services so provided till now. The bank, majority of the

customers and not satisfied with the services offered by the bank.

In conclusion, as the main target of the bank is to increase its market share hence

more focus should be on services, creating awareness of the brand and more enhanced

market tapping techniques should be used.

Page 37 of 51

9. Learning:

This project was a very great source of learning for me as were the Bank officials who

helped me with anything required.

By going into the market places interacting with old customer base as well as with the

new clients, provided me knowledge of how to tackle the client and to take the

conversation ahead.

As important as a competitive orientation is in today’s markets, Banks should not do

the emphasis on competitors. There should be a proper balance between the customer

base and the competitor’s monitoring.

HDFC Bank being the market leader in the CASA value (Current and savings

account) formulates with the policies and also brings changes into its strategies to

attract more of the customer base and increase its market share.

But being a market leader HDFC Bank is able to generate its profits as well its

position into market with the help of its new products and its customer base.

This project also helped me to understand about the Foreign exchange which includes

the procedure that all is required to complete the transactions as well as the services

which a bank does as a part of the services for the foreign exchange customers, I also

learnt about the rates procedure as well as the

Page 38 of 51

10. CONTRIBUTION to HDFC:

Out of these 6 markets, there were 25 prospects who are interested to shift their

accounts from their existing bank to HDFC Bank.

10 Meetings with Trade Team of HDFC and the Managers of HDFC have been

arranged with the Traders who were willing to shift their Account.

The negotiation is still in progress.

ABC LTD. having turnover of Rs500-Rs1000 crore (Approx.) has been

approached by me in order to increase their market share of the bank and also

one meeting with them is done.

XYZ LTD. having a turnover of Rs.20 crore has been approached by me in

order to increase the market share and the deal is converted and closed with the

help of the Trade Team.

ZX LTD. was approached by me and one manager to make him understand the

strategies and also the service of the Bank, the deal is still in progress.

XYZ LTD. was approached by me to increase the market share of the Bank and

the deal is converted and closed with the help of the Trade manager.

CD LTD. was approached by me and one manager to make him understand the

strategies and also the service of the Bank, the deal is still in progress.

JK LTD. was approached by me and one manager to make him understand the

strategies and also the service of the Bank, the deal is still in progress.

DTC LTD. was approached by me and one manager to make him understand

the strategies and also the service of the Bank, the deal is still in progress.

XYZ LTD. was approached by me and one manager to make him understand

the strategies and also the service of the Bank, the deal is still in progress.

HTG LTD. was approached by me and one manager to make him understand

the strategies and also the service of the Bank, the deal is still in progress.

FTD LTD. was approached by me and one manager to make him understand

the strategies and also the service of the Bank, the deal is still in progress.

Page 39 of 51

ANNEXURE

QUESTIONNAIRE FOR TRADERS

COMPANY NAME:

ADDRESS:

CONTACT NO:

1. Nature of business?

a. Domestic

b. International (importing/exporting)

c. Both

2. In which commodity you deal?

_________________________________________________

3. Import/Export from which country? (Please specify the name)

_________________________________________________

4. Size of the market.

_________________________________________________

5. What is your Turnover?

_________________________________________________

5. Currently banking with which bank for the foreign transactions?

________________________________________________

6. Reason for choosing it?

a. Better service offered

b. Less processing cost

c. Location facility

d. Better deals

e. Good Exchange Rates

f. All of the above

Page 40 of 51

7. Are you satisfied with the services provided by your bank?

a. Yes

b. No

8. Do you have any limits?

a. Cash credit

b. Overdraft

c. Letter of Credit

d. Buyers credit

9. What is the limit provided by your bank?

___________________________________________________

10. Terms of payments?

a. Advance payments

b. Direct payments

c. Collection payments(DA/DP)

d. Letter of credit

THANK YOU

Page 41 of 51

QUESTIONNAIRE FOR ASSOCIATIONS

Need Assessment Questionnaire:

Instruction:

Please fill in the questionnaire with appropriate responses.

1. Name of the Association :

2. Address :

3. Contact Details: :

Telephone :

Email :

Year of Incorporation :

4. Name and designation :

Of the Chief Executive

5. Major Remittance (country) :

6. Which bank is more preferred in the market? :

7. Number of importers in the market :

8. Market size :

9. Reasons for not choosing HDFC Bank:-

I. Good Exchange Rates :

II. Less Processing Cost :

III. Less Documentation/Easy Transaction :

IV. No. of Days for transaction process :

(If less, how many days)

10. Do you want to transfer the account to any other bank? :

11. Expectations (if any) :

Page 42 of 51

REFERENCES

WEBSITES

http://www.investopedia.com/university/forexmarket/forex5.asp

http://www.brownconsultancy.com/ds-theory-foreign-exchange.aspx

http://www.investinganswers.com/financial-dictionary/stock-market/spot-

trade-2161

http://www.investopedia.com/terms/s/spottrade.asp

http://economictimes.indiatimes.com/definition/swap

http://profit.ndtv.com/stock/hdfc-bank-ltd_hdfcbank/reports-directors-report

http://www.businesstoday.in/moneytoday/commodities/spices-give-good-

returns-for-your-investment-portfolio/story/16545.html

http://www.economywatch.com/economy-business-and-finance-

news/comparing-india-to-the-world.01-08.html

http://www.business-standard.com/article/markets/agri-exports-outpace-

other-commodities-114040300941_1.html

http://www.scribd.com/doc/18003104/A-PROJECT-REPORT-ON-HDFC-

BANK-submiited-by-Ankita-singh#scribd

http://www.slideshare.net/sahikomal/strategic-management-process-of-hdfc-

bank

http://www.britannica.com/topic/commodity-trade

http://www.marketing91.com/swot-analysis-hdfc/

http://winnersedgetrading.com/personality-and-strengths-in-forex-

trading/#sthash.w6x5KNUR.dpbs

http://moneysukh.com/UploadResearch/635152068353281250_HDFC%20B

ANK.PDF

https://www.hdfcbank.com/aboutus/News_Room/hdfc_profile.htm

http://www.hdfcbank.com/assets/pdf/Investor_Presentation.pdf

Page 43 of 51

Journals & Reports

1. HDFC BANK LTD. Available at

http://www.hdfcbank.com/aboutus/cg/annual_reports.htm [Accessed 7 April 2016]

http://www.moneycontrol.com/financials/hdfcbank/financial-graphs/operating-profit-ebitda-

percentage/HDF01 [Accessed 7 April 2016]

2. Gomathi AR, Dr. K. Prabhakar and Srividya R.,” INTEGRATED FOREX AND

TREASURY OPERATIONS BY BANKS IN INDIA”, NATIONAL MONTHLY

REFEREED JOURNAL OF RESEARCH IN COMMERCE & MANAGEMENT,

Volume -2, Issue No: 9.

3. Mr. Sharma K R S, June2013, “ A Study of Commodity Futures in India”, Asia

Pacific Journal of Research, Volume No: 2 Issue: 4.

4. Debjiban Mukherjee, April 2007, “Comparative Analysis of Indian Stock Market with

International Markets”, Great Lakes Institute of Management, Chennai, Volume 1,

Issue 1

5. Jayant Manglik, “Indian commodity markets: past, present and future”, Religare

Commodities Limited, India.

6. Rajesh Chakrabarti, “Foreign Exchange Markets”, College of Management, Georgia

Tech.