Report on Hdfc Bank

1 PROJECT utmost REPORT ON averING BY JIGAR SONI AT Summer Internship Project 2 PROJECT TITLE A project accounting on troupe GUIDE FACULTY GUIDE ================ ============== Mr. Manish Panchal Prof. Pragna Kaul section Manager IBMR Ahmedabad Kapadwanj. Prep atomic number 18d by Jigar J Soni Roll no. 5 , Div A IBMR _Ahmedabad Year 2008/09 3 Ac contendledgements If words atomic number 18 considered to be signs of gratitude then let these words be move up the precise aforementioned(prenominal) My sincere gratitude to HDFC jargon for roviding me with an opportunity to treat with fix and giving requisite directions on doing this project to the best of my abilities. I am senior high schoolly indebted to Mr. Manish Panchal. , Branch Manager and company project guide, who has provided me with the necessary information and also for the support go forwarded start to me in the bequeath of this report and his valuable suggestion and comments on bringing out this report in the best way manageable. I also thank Prof. Pragna Kaul, IBMR_Ahmedabad, who has unfeignedly supported me with the valuable insights into the completion of this project.I am grateful to each last(predicate) faculty members of IBMR_Ahmedabad and my 4 friends who nominate helped me in the successful completion of this project. 5 CONTENTS Sr. no. Subject C overed Page No. 1 commiting Structure in India 6-7 2 Indian cussing Industries 8-9 3 coming(prenominal) strange coast in India 10 4 HDFC BANK 11-12 5 Company Profile 13-15 6 applied science used 16-19 7 ontogenesis and Customer segments 20-23 8 argument Strategy 24-25 9 Inside Hdfc believe 26-31 10 rupee Earned Rupee Spent 32-33 11 new-sprung(prenominal) Development 34-41 12 SWOT Analysis 42-48 13 Project on Plastic M atomic number 53y 49-55 6 BANKING STRUCTURE IN INDIA Scheduled sticks in India (A) Scheduled Commercial tills creation vault of heaven rims Private field vernaculars external beachs in India Regional Rural camber (28) (27) (29) (102) Nationalized bank building Other Public sphere of influence Banks (IDBI) SBI and its Associates Old Private Banks sassy Private Banks (B) Scheduled concerted Banks Scheduled Urban Cooperative Banks (55) Scheduled State Cooperative Banks (31) 7 Here we to a greater extent concerned about non existence sector buzzwords and contention among them. Today, in that location are 27 personal sector banks in the banking sector 19 old private sector banks and 8 new private sector banks. These new banks have brought in state-of-the-art engineering and aggressively marketed their products.The Public sector banks are Facing a impish contender from the new private sector banks. The banks which have been setup in the mid-nineties to a blueer place the guidelines of the Narasimham Committee are referred to as NEW PRIVATE sphere of influence BANKS. New Private Sector Banks Superior Financial go knowing Innovative Products Tapped new markets advanceed pocket-size cost NRI funds Greater talent 8 INDIAN BANKING INDUSTRIES The Indian banking market is growing at an surprise rate, with Assets expected to reach US$1 gazillion by 2010. An expanding economy, mall signifier, and technological innovations are all ontri simplying to this growth. The countrys middle class accounts for over 320 one million million million people. In correlation with the growth of the economy, rising income levels, increase standard of living, and affordability of banking products are promising factors for continued expansion. 9 The Indian banking manufacturing is in the middle of an IT revolution, Focusing on the expansion of sell and campestral banking. Players are becoming increasingly customer centric in their approach, which has resulted in advance(a) methods of offering new banking products and dishs. Banks are now realizing the mportance of being a big player and are beginning to counseling their attention on mergers and acqu isitions to take advantage of economies of scale and/or comply with Basel II regulation. Indian banking industry assets are expected to reach US$1 trillion by 2010 and are poised to receive a greater excerpt of foreign capital, says Prathima Rajan, analyst in Celents banking group and author of the report. The banking industry should signal on having a small number of boastfully players that target make out globally rather than having a large number of fragmented players. coming(prenominal) FOREIGN BANKS IN INDIA By 2009 few more names is firing to be added in the list of foreign banks in India. This is as an consequence of the sudden interest sh testify 10 by observe Bank of India paving material roadmap for foreign banks in India greater freedom in India. Among them is the worlds best private bank by Euro property magazine, Switzerlands UBS. The fol brokening are the list of foreign banks spill to set up melodic phrase in India - Royal Bank of Scotland Switzerlands UBS US- ascendentd GE chief city Credit Suisse Group Industrial and Commercial Bank of mainland China WE UNDERSTAND YOUR WORLDThe Housing Development finance Corporation hold in (HDFC) was amongst the first to receive an in principle approval from the 11 Reserve Bank of India (RBI) to set up a bank in the private sector, as exposit of the RBIs liberalization of the Indian Banking Industry in 1994. The bank was corporate in August 1994 in the name of HDFC Bank Limited, with its registered office in Mumbai, India. HDFC Bank commenced trading operations as a Scheduled Commercial Bank in January 1995. HDFC is Indias premier housing finance company and enjoys an impeccable token record in India as thoroughly as in world(prenominal) markets.Since its inception in 1977, the Corporation has maintained a consistent and fit growth in its operations to remain the market pencil leader in mortgages. Its outstanding loan portfolio covers wellspring over a million domicil units. HD FC has developed significant expertise in sell mortgage loans to dis alike market segments and also has a large corporate client base for its housing related character facilities. With its experience in the fiscal markets, a strong market reputation, large shareholder base and unique consumer franchise, HDFC was whimlly positioned to put up a bank in the Indian nvironment. HDFC Bank began operations in 1995 with a simple mission to be a 12 World Class Indian Bank. We realized that only a case-by-case minded focus on product quality and service honor would help us get there. Today, we are proud to say that we are well on our way towards that goal. COMPANY PRO saddle STRONG matter NETWORK 13 HDFC BANK As of certify 31, 2008, the Banks distribution kale was at 761 Branches and 1977 automated tellers in 327 cities as against 684 branches surround 2006 show 2007 establish 2008 Citied 228 316 327 Branches 535 684 761 ATMs 1323 1605 1977 14 nd 1,605 ATMs in 320 cities as of March 31, 2007. Against the regulative approvals for new branches in hand, the Bank expects to supercharge expand the branch meshing by or so 150 branches by June 30, 2008. During the year, the Bank stepped up retail customer acquisition with deposit accounts increasing from 6. 2 million to 8. 7 million and total cards issued (debit and book of facts cards) increasing from 7 million to 9. 2 million. Whilst credit growth in the banking system s grimed down to about 22% for the year ended 2007-08, the Banks net advances grew by 35. 1% with retail advances growing by 38. % and wholesale advances growing by 30%, implying a higher market share in some(prenominal) segments. The transactional banking business enterprise also registered well-grounded growth With cash management volumes change magnitude by around 80% and trade services volumes by around 40% over the previous year. Portfolio quality as of March 31, 2008 remained healthy with gross nonperforming assets at 1. 3% an d net non-performing assets at 15 0. 4% of total customer assets. The Banks provisioning policies for specific loan loss provisions remained higher than regulatory requirements. TECHNOLOGY USED IN HDFC BANKIn the era of globalization each and every sector face the stiff competition from their rivals. And world also converted into the flat from the globe. by and by the policy of liberalization and RBI initiatives to take the step for the private sector banks, more and more changes 16 are taking the part into it. And there are create competition between the private sector banks and public sector bank. Private sector banks are today used the modish applied science for the different transaction of day to day banking life. As we know that Information Technology plays the vital role in the each and every ndustries and gives the optimum return from the limited resources. Banks are service industries and today IT gives the innovative Technology application to Banking industries. HDFC BA NK is the leader in the industries and today IT and HDFC BANK together combined they reached the sky. New technology changed the mind of the customers and changed the queue construct from the history banking transaction. Today there are different channels are available for the banking transactions. We can see that the how technology gives the best results in the downstairs diagram. There are drastically changes seen in the use ofInternet banking, in a year 2001 (2%) and in the year 2008 ( 25%). These fictitious character of technology gives the freedom to retail customers. 17 Centralized Processing Units Derived Economies of Scale electronic Straight Through Processing Reduced Transaction Cost data Warehousing , CRM Improve cost efficiency, Cross sell Innovative Technology Application Provide new or superior products HDFC BANK is the very consistent player in the New private sector banks. New private sector banks to withstand the competition from public sector banks came up with innovative products and superior service. 2001 18 Branches 43% ATM 40% think Banking 14% Internet 2% Mobile 1% 2005 Branches 17% ATM 45% Phone Banking 12% Internet 25% Mobile 1% ( % customer initiated Transaction by Channel ) 19 HDFC BANK crossway AND CUSTOMER SEGMENTS PERSONAL BANKING loan Product dethronement Product enthronisation & Insurance Auto Loan Loan Against Security Loan Against post Personal loan Credit card 2-wheeler loan Commercial vehicles finance Home loans Retail business banking Tractor loan Working jacket Finance Construction Equipment Finance health Care Finance Education Loan Gold Loan Saving a/c Current a/c Fixed deposit Demat a/c Safe DepositLockers Mutual stock certificate Bonds Knowledge Centre Insurance General and Health Insurance Equity and Derivatives Mudra Gold Bar 20 beleaguers salary go Access To Bank Credit dining table Debit Card Prepaid Card - - Forex Services - - Product & Services Trade Services Forex service Branch Locater RBI Guidel ines NetSafe Merchant Prepaid make full(a) Billpay Visa Billpay InstaPay DirectPay VisaMoney tape transport eMonies Electronic Funds Transfer Online retribution of Direct impose NetBanking OneView InstaAlert MobileBanking ATM Phone Banking Email Statements Branch communicate 21 WHOLESALE BANKING embodied Small and Medium Enterprises Financial Institutions and Trusts Funded Services Non Funded Services Value Added Services Internet Banking Funded Services Non Funded Services alter Services Value added services Internet Banking BANKS Clearing Sub- Membership RTGS submembership Fund Transfer ATM Tie-ups Corporate Salary a/c Tax Collection Financial Institutions Mutual Funds Stock Brokers Insurance Companies Commodities Business Trusts BUSINESS MIX 22 Total Deposits Gross Advances Net grossRetail Wholesale HDFC Bank is a consistent player in the private sector bank and have a well equilibrate product and business mix in the Indian as well as overseas markets. Customer segments (retail & wholesale) account for 84% of Net revenues ( FY 2008) high retail revenues partly offset by higher in operation(p) and credit costs. Equally well positioned to grow both segments. . 23 NRI SERVICES Accounts & Deposits Remittances Rupee Saving a/c Rupee Current a/c Rupee Fixed Deposits Foreign Currency Deposits Accounts for Returning Indians North the States UK Europe South East Asia Middle East Africa OthersQuick confuse IndiaLink Cheque LockBox Telegraphic/ Wire Transfer Funds Transfer Cheques/DDs/TCs Investment & Insurances Loans Mutual Funds Insurance Private Banking Portfolio Investment strategy Home Loans Loans Against Securities Loans Against Deposits Gold Credit Card Payment Services Access To Bank NetSafe BillPay InstaPay DirectPay Visa Money Online Donation NetBanking OneView InstaAlert ATM PhoneBanking Email Statements Branch Network 24 BUSINESS STRETEGY HDFC BANK mission is to be a World Class Indian Bank, benchmarking themselves against international stand ards and best ractices in terms of product offerings, technology, service levels, risk management and audit & compliance. The documentary is to build sound customer franchises crosswise distinct businesses so as to be a preferred provider of banking services for target retail and wholesale customer segments, and to achieve a healthy growth in profitability, consistent with the Banks risk appetite. Bank is committed to do this while ensuring the highest levels of good standards, professional integrity, corporate governance and regulatory compliance. Continue to develop new product and technology is the main business strategy f the bank. proceed good relation with the customers is the main and prime objective of the bank. HDFC BANK business strategy emphasizes the following 25 Increase market share in Indias expanding banking and monetary services industry by following a condition growth strategy focusing on quality and non on quantity and pictureing high quality customer serv ice. Leverage our technology platform and open scaleable systems to deliver more products to more customers and to control operating costs. Maintain current high standards for asset quality through disciplined credit risk management. Develop innovative products and services that attract the targeted customers and oral communication inefficiencies in the Indian financial sector. Continue to develop products and services that descend banks cost of funds. Focus on high earnings growth with low volatility. 26 INSIDE HDFC BANK FIVE S , PART OF KAIZEN WORK PLACE TRANSFORMATION Focus on efficacious work get in government Believe in Small changes lead to large improvement Every successful organization have their own strategy to win the race in the combative market. They use round technique and methodology for smooth running of business.HDFC BANK also aquired the Japanese technique for smooth running of work and answerive work place organization. Five S Part of Kaizen is the techni que which is used in the bank For easy and systematic work place and eliminating unessential things from the work place. public assistance OF FIVE S 27 It can be started immediately. Every one has to participate. Five S is an entirely people driven initiatives. Brings in conceit of ownership. All wastage are made visible. FIVE S Means - S-1 disunite SEIRI S-2 SYSTEMATIZE SEITON S-3 SPIC-N-SPAN SEIRO S-4 STANDARDIZE SEIKETSU S-5 SUSTAIN SHITSUKE (1) SORT -It focus on eliminating unnecessary items from the work place. It is excellent way to free up valuable underprice space. It segregate items as per require and wanted. (2) SYSTEMATIZE - Systematize is focus on efficient and impelling Storage method. Frequently Requir ed slight Frequently Requir ed Remove everything from workplace Junk Wanted but non Required Junk 28 That means it identify, organize and fix up retrieval. It largely focus on good labeling and identification practices. Objective - A place for everything and ev erything in its place. (3) SPIC- n SPAN - Spic-n-Span focuses on unfluctuating clearing and self nspection. It brings in the sense of ownership. (4) STANDERDIZE - It focus on decrease and standardization. It involve standard rules and policies. It establish checklist to facilitates autonomous maintenance of workplace. It assign rightfulness for doing various jobs and decide on Five S frequency. (5) SUSTAIN- It focuses on defining a new status and standard of organized work place. Sustain means regular training to maintain standards developed under S-4. It brings in self- discipline and commitment towards workplace organization. 29 LABELLING ON FILE FILE NUMBER SUBJECT FROM DATE TO DATE OWNER encase LABELFor Example 1 / 3 / A / 6 1 Work Station (1) 3 Drawer (3) A Shelf (A) 6 File Number ( 6) 30 COLOUR CODING OF FILES DEPARTMENT meet Desk Personal Banker Teller Relationship Manager Branch Manager Demat Others In the HDFC BANK each department has their different gloss codin g feed on the different file. Due to this everyone aware about their particular color file which is coding on it and they save their valuable time. It is a part of Kaizen and also included in the system of the Five S. system of logic behind it that , the color coding are always differentiate the things from the similar one. 31 HUMAN RESOURCESThe Banks staffing needs continued to increase during the year particularly in the retail banking businesses in line with the business growth. Total number of employees increased from 14878 as of March31,2006 to 21477 as of March 31, 2007. The Bank continues to focus on training its employees on a continuing basis, both on the job and through training programs conducted by internal and outdoor(a) faculty. The Bank has consistently believed that broader employee ownership of its shares has a positive impact on its performance and employee motivation. The Banks employee stock option scheme so far covers round 9000 employees. 32 RUPEE EARNED RU PEE exhausted It is more important for every organization to know about from where and where to fatigued money. And balanced between these two things rupee earned and rupee pass are required for smooth running of business and financial soundness. This type of watch can control and eliminate the unnecessary spending of business. In this diagram it include both things from where Bank earned Rupee and where to worn out(p). 33 HDFC BANK earned from the affair from Advances 51. 14 % , Interest from Investment 27. 12 %, bank earned commission give-and-take and brokerage of 15. 25 %.These are the major earning sources of the bank. Bank also earned from the Forex and Derivatives and some other Interest Income. Bank spent 39. 75 % on Interest Expense, 30. 27 % on Operating Expense and 14. 58 % on Provision. Bank also spent Dividend and Tax on dividend, Loss on Investment , Tax. As we dissertate above that balancing is must between these two for every organization especially in the er a of globalization where there are stiff competition among various market players. RECENT DEVELOPMENT 34 The Reserve Bank of India has approved the scheme of amalgamation of Centurion Bank of Punjab Ltd. ith HDFC Bank Ltd. with effect from May 23, 2008. All the branches of Centurion Bank of Punjab will function as branches of HDFC Bank with effect from May 23, 2008. With RBIs approval, all requisite statutory and regulatory approvals for the merger have been obtained. 35 The combined entity would have a nation capacious network of 1167 branches a strong deposit base of around Rs. 1,22,000 crores and net advances of around Rs. 89,000 crores. The balance piece of paper size of the combined entity would be over Rs. 1,63,000 crores. Merger with Centurion Bank of Punjab LimitedOn March 27, 2008, the shareholders of the Bank accorded their have to a scheme of amalgamation of Centurion Bank of Punjab Limited with HDFC Bank Limited. The shareholders of the Bank approved the issuance of on e equity share of Rs. 10/- each of HDFC Bank Limited for every 29 equity shares of Re. 1/- each held in Centurion Bank of Punjab Limited. This is subject to receipt of Approvals from the Reserve Bank of India, stock exchanges and Other requisite statutory and regulatory authorities. The shareholders Also accorded their consent to issue equity shares and/or warrants onvertible into equity shares at the rate of Rs. 1,530. 13 each to HDFC Limited and/or other promoter group companies on preferential basis, subject to final regulatory approvals in this regard. The Shareholders of the Bank have also approved an increase in the authorized capital from Rs. 450 crores to Rs. 550 crores. 36 Promoted in 1995 by Housing Development Finance Corporation (HDFC), Indias tether housing finance company, HDFC Bank is one of Indias premier banks providing a wide range of financial products and services to its over 11 million customers crossways hundreds ofIndian cities using multiple distribution ch annels including a pan-India network of branches, ATMs, phone banking, net banking and mobile banking. Within a relatively compact span of time, the bank has emerged as a leading player in retail banking, wholesale banking, and treasury operations, its three principal business segments. The banks competitive strength clearly lies in the use of technology and the ability to deliver world-class service with rapid response time. Over the last 13 years, the bank has successfully gained market share in its target customer franchises while maintaining healthy rofitability and asset quality. 37 As on March 31, 2008, the Bank had a network of 761 branches and 1,977 ATMs in 327 cities. For the year ended March 31, 2008, the Bank reported a net profit of INR 15. 90 one million million million (Rs. 1590. 2crore), up 39. 3%, over the corresponding year ended March 31, 2007. As of March 31, 2008 total deposits were INR 1007. 69 billion, (Rs. 100,769 crore) up 47. 5% over the corresponding year ended March 31, 2007. Total balance sheet size too grew by 46. 0% to INR 1,331. 77 billion (133177 crore). tether Indian and internationalPublications have recognized the bank for its performance and quality. Centurion Bank of Punjab is one of the leading new generation private sector banks in India. The bank serves individual consumers, small and medium businesses and large corporations with a full range of financial products and services for investing, lending and 38 advice on financial planning. The bank offers its customers an array of wealth management products such as shared funds, life and general insurance and has established a leadership position. The bank is also a strong player in foreign exchange services, ersonal loans, mortgages and agricultural loans. Additionally the bank offers a full suite of NRI banking products to afield Indians. On 29th August 2007, Centurion Bank of Punjab merged with Lord Krishna Bank (LKB), post obtaining all requisite statutory and regul atory approvals. This merger has further strengthened the geographical reach of the Bank in major towns and cities across the country, especially in the State of Kerala, in addition to its existing sureness in the northern part of the country. Centurion Bank of Punjab now operates on a strong nationwide ranchise of 404 branches and 452 ATMs in 190 locations across the country, supported by employee base of over 7,500 employees. In addition to being listed on the major Indian stock exchanges, the Banks shares are also listed on the Luxembourg Stock 39 Exchange. ACHIEVEMENT IN 2007 Business Today- monitor Group survey One of Indias Most Innovative Companies Financial stub out- Ernst & late grant top hat Bank allocate in the Private Sector category 40 Global HR excellency Awards Asia Pacific HRM coitus Employer home run of the Year 2007 -2008Award First Runner up, & many more Business Today Best Bank Award Dun & Bradstreet American Express Corporate Best Bank Award 2007 Cor porate Best Bank Award The Bombay Stock Exchange and Nasscom Foundations Business for Social Responsibility Awards 2007 Best Corporate Social Responsibility Practice Award Outlook Money & NDTV Profit Best Bank Award in the Private sector category. The Asian Banker Excellence in Retail Financial Services Awards Best Retail Bank in India Asian Banker HDFC BANK Managing Director Aditya Puri wins the Leadership Achievement Award for India 41 SWOT ANALYSISSTRENGTH Right strategy for the right products. Superior customer service vs. competitors. WEAKNESSES Some gaps in range for original sectors. Customer service staff need training. 42 Great Brand Image Products have required accreditations. high school degree of customer satisfaction. peachy place to work Lower response time with efficient and effective service. Dedicated workforce aiming at making a long-term locomote in the field. Processes and systems, etceteraManagement cover insufficient. Sectoral growth is constrained by low unemployment levels and competition for staff 3 Opportunities Profit margins will be good. Could extend to overseas broadly. New specialist applications. Could seek better customer deals. Fast-track locomote development opportunities on an industry-wide basis. An applied research centre to create opportunities for developing techniques to provide added-value services. Threats Legislation could impact. Great risk involved in truth high competition prevailing in the industry. Vulnerable to reactive attack by major competitors Lack of infrastructure in rural areas could constrain investment. High volume/low cost market is intensely ompetitive. 44 emulous SWOT ANALYSIS WITH ICICI BANK STRENGTHS WEAKNESSES O P P O R T U N I T I E S S O Strategies lastingness Large Capital base. probability Market Expansion. Strategy Deep Penetration into Rural Market. W O Strategies flunk Workforce Responsiveness. Opportunity Outsourcing of Non Core Business. Strategy source Customer Care & ot her E-Helps. T H R E A T S S T Strategies intensity Low operating costs Threat Increased Competition from others Pvt. Banks. Strategy stairs to Ensure Loyalty by old Customers. W T Strategies flunk Not Equal to International Standards.Threat Entry of many Foreign Banks. Strategy Consider additional pull ins 45 Detailed Analysis i. Strength Opportunity Analysis. Strength It is well know that ICICI Bank has the largest Authorised Capital Base in the Banking System in India i. e. having a total energy to raise Rs. 19,000,000,000 (Non Premium Value). Opportunity Seeing the present financial & economic development of Indian Economy and also the tremendous growth of the Indian Companies including the acquisition spree followed by them, it clearly states the expanding market for finance requirements nd also the growth in surplus disposal income of Indian citizens has give a huge rise in savings deposits from the above point it is clear that there is a huge market expansion possi ble in banking sector in India. Strategy From the analysis of Strength & Opportunity the simple and 46 straight possible strategy for ICICI Bank could be to penetrate into the rural sector of India for expanding its market share as well as leading all other Pvt. Banks from a great gap. ii. Strength Threat Analysis. Strength ICICI Bank is not only known for large capital but also for having a ow operations cost though having huge number of branches and services provided. Threat After showing a significant growth overall, India is able to attract many international financial & banking institutes, which are known for their state of art working and keeping low operation costs. Strategy To tell that ICICI Bank keeps going on with low operation cost & have continuous business it should simply promote itself well & provide quality service so as to ensure customer loyalty, therefore guaranteeing continuous business. 47 iii. failing Opportunity Analysis. WeaknessIt is well known that wo rkforce responsiveness in banking sector is Very low in Indian banking sector, though ICICI Bank has better prudent staff but it still lacks behind its counterparts like HSBC, HDFC BANK, CITI BANK, YES BANK etc. Opportunity In the present world, India is preferred one of the best places for out sourcing of business process works and many more. Strategy As international companies are reaping huge benefits after out- sourcing there customer care & BPOs, this same strategy should be implemented by ICICI Bank so as to have proper customer ervice without hindering customer expectations. 48 iv. Weakness Threat Analysis. Weakness Though having a international presence, ICICI Bank has not been able to keep up the international standards in providing customer service as well as banking works. Threat In recent times, India has witnessed entering of many international banks like CITI Bank, YES Bank etc which posses an external entrant bane to ICICI Bank as this Banks are known for their art of working and maintain high standards of customer service. Strategy After having new entrants threat, ICICI Bank should come up withMore additional benefits to its customer or may be even reduce some fees for any additional works of customers. 49 PROJECT ON shaping MONEY PLASTIC MONEY PLASTIC MONEY I give the project on Plastic Money to bank. The objective behind this project is to increase the rich customers list in a bank. Plastic Money title itself says the use of Credit Card and Debit Card in day to day transaction of the business. I prepared the presentation on it and 50 submitted to bank and Bank already started work on this project. Idea behind this project is to sale the mint product. Target customerOf this project are two parties one is contact and second is Retailer. Due to this idea bank also sell their nip automobile to wholesaler and create brand image in the market. The idea behind this, bank give the credit card swipe machine to wholesalers and retailers use the credit card of the bank. Bank gives the 50 days credit to their credit card holders. So here retailers can get benefit of long credit period and on the other side wholesalers can get the benefit of same day payment. As a result bank got the wide list of customers of wholesalers and retailers.