Hdfc Bank Final

8/8/2019 Hdfc Bank Final

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A Summer Internship Project Report on

To Find Out The Satisfaction Level Of Hdfc Bank

Customers In Butibori Area

submitted in partial fulfillment of the requirements for the degree of

Post Graduate Diploma in Management (Marketing)

by

ABDUL RAZAK SHEIKH(Roll No.C-53)

Under the guidance of

Kumendra Raheja

A Study Conducted forHDFC Bank Ltd.

Trimurti Tower, Opposite 5 star MIDC

Gate,Butibori Square

Butibori-441108

at

Indira School of Business Studies,

Tathawade, Pune 411033

(2009-11)


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ACKNOWLEDGEMENTS

The satisfaction and excitement that go together with the successful

completion of any work be incomplete without mentioning of the people, whose competent

guidance and encouragement serve as inspirational light to help along the path of success

Firstly, I express my gratitude to Dr. Renu Bhargava, Director, Indira School of

Business Studies, Pune for giving me the valid opportunity to undertake this project. I also thank

Mr. Kumendra Raheja for continuous guidance & support.

I would like to express my heartfelt gratitude to Mr. Pankaj khamankar (B.M

HDFC Bank Ltd). I am extremely thankful to all time supportive Mr. Tushar Takale (PBA

Manager) for his inspiring guidance and scholarly supervision. My special appreciation goes to

Mr. Ramukumar Choubey (Asst Manager) for guidance and support throughout the project.

Abdul .R. SheikhIndira School of Business Studies,

Pune.


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FORMAT OFCERTIFICATEFROM THECOLLEGE

This is to certify that Mr. Abdul .R. Sheikh is a bonafide student of this institute and hassuccessfully completed his project entitled Customers Perception Towards the Product and

Service Offered by HCDF Bank in Rural Areas And Comparative Analysis at HDFC Bank Ltd. , Butibori for partial fulfillment of course Post Graduate Diploma in Management

(Marketing) from Indira School of Business Studies.

Dr. Renu BhargavaDirector, ISBS


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FORMAT OF COMPLETEION CERTIFICATE FROM

THECOMPANY (Companys Letterhead)

This is to certify that Mr./Ms. __________________________student of Post Graduate Diplomain Management from Indira School of Business Studies has satisfactorily completed his/her

project work ______________________________________________________________________________

__________________________________________ in ___________________Department of _____________________ from _____to_______.

Authorized Signature

**********************


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EXECUTIVE SUMMARY

The bases of the project were to understand customer perception about the various

schemes like Current account and Salary account under liability products for retail banking.

The project also encompasses, identify and parameter, a customer would look into while

transacting with bank for certain scheme.

Overall analysis has been done, keeping in mind the various customer segments like businessmen,

salaried people, students and others, consideration while opting for any deposits or borrowings.

The analysis shows the pitfalls and identifies the opportunities available for HDFC Bank andcompetitor analysis has been done by considering four other close competing commercial banks

like ICICI, SBI, UTI, IDBI banks at Nagpur , analysis has been done by taking the profitability

and performance indicator, it says there are several potentials available for HDFC bank to be the

market favorite. After the analysis it is found that the major part of the deposits from HDFC Bank

, Nagpur is formed by businessmen followed by salaried people and professionals and its nearest

competitors are ICICI Bank & SBI.


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Table of ContentsS N Contents Pg No

1 Introduction

2 Industry / Company overview

Industry overview

Company profile

3 Review ofLiterature/ Theoretical Background

4 Objectives

5 Research Methodology

6 Data Analysis , Results and Interpretation

7 Findings

8 Conclusion

9 Limitations of the project

10 Recommendations

11 Appendix

12 Bibliography


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Introduction

The project is on to find out the satisfaction level of Hdfc bank customers in

butibori area. The purpose of the project was to increase footfalls, find out flaws within the

system and suggest corrective measures to increase footfalls.

The project aims at finding out Customer wives between Current Service standards

at HDFC Bank Ltd and Customers expectations. Current service standards were clear by

personally visiting HDFC Bank and observing the behavior of customers, the services offered to

customers and thereby understanding the shortcomings of the Bank.

The next phase was Customers Expectations Survey. Customers Expectation

survey was basically carried out with the aim of finding out customers satisfaction level with

respect to services provided and category of products offered. The secondary purpose was to find

out the effect of promotion by HDFC Bank. To get a deeper understanding of the expectations of

customers the internal customers (employees) satisfaction was also determined. The customer

satisfaction survey helped to determine the knowledge on products and company possessed by

front end staff.

The results from the survey helped to understand customers expectations from

HDFC Bank. It also helped in determining the extent of marketing efforts needed. The results

from employee satisfaction survey helped to understand the concerns of the front end staff.


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Industry / Company Overview

HDFC Bank 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 from Housing Development Finance Corporation

Limited (HDFC), in 1994 during the period of liberalization of the banking sector in India. HDFC

India was incorporated in August 1994 in the name of 'HDFC Bank Limited'. HDFC Bank , one

amongst the firsts of the new generation, tech-savvy commercial banks of India, was set up in

august 1994 after the Reserve Bank of India allowed setting up of Banks in the private sector

.

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

housing finance company (set up in 1977) of India. Net Profit for the year ended March 31, 2007

was up Rs.1,141.5 crores, up 31.1%. Headquartered in Mumbai,

HDFC Bank, has a network of over 684 branches spread over 316 cities across India. All

branches are linked on an online real-time basis. Customers in over 120 locations are serviced

through Telephone Banking. The Bank also has a network of about over 1605 networked ATMs

across these cities.

The other bank in Private sector are:-

1. ICICI BANK:- ICICI Bank is India's #2 bank (after State Bank of India) and its largest private bank, with some 1,500 branches and 4,900 ATMs nationwide. It also has

locations in about 20 other countries. ICICI's retail banking group offers lending and

deposit services to small businesses and individuals; larger businesses are served by the

corporate banking group, which offers finance services and treasury products. The rural

and government banking unit offers micro-loans and agricultural banking. Foreign

operations, as well as services related to international trade finance and expatriate


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Indians, fall under the international banking group. Other offerings include online

banking, asset management, and insurance.

2.AXIS BANK:-

Axis Bank was the first of the new private banks to have begun

operations in 1994.

The Bank today is capitalized to the extent of Rs. 358.97 crores with the public holding

(other than promoters) at 57.59%.Presently, the Bank has a very wide network of more

than 729 branch offices and Extension Counters. The Bank has a network of over 3171

ATMs providing 24 hrs a day banking convenience to its customers. This is one of the

largest ATM networks in the country.

The Bank has strengths in both retail and corporate banking and is committed to adopting

the best industry practices internationally in order to achieve excellence.

3. YES BANK:-The Company's principal activities are to provide treasury, banking andother banking services to corporate and institutional clients, small and medium sized

businesses and retails customers. The Company operates in four segments: Treasury,

Corporate/wholesale Banking, Retail Banking and Other Banking Operations. It accepts

deposits and extends loans as well other value-added products and services to its

customers, including financial markets products and services, transactional banking

products and services, investment banking advisory services and wealth management

products. The Company operates through 123 branches and over 200 ATMs in India.

4. HSBC BANK:-HSBC Bank is a subsidiary of HSBC Holdings plc, a London basedbanking giant which, according to the Forbes magazine, is the largest banking group in

the world, and the 6th largest company in the world as of April 2009. HSBC Holdings


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had been established in Hong Kong in the year 1990 as the parent company to the

Hongkong and Shanghai Banking Corporation (HSBC). Further, the bank moved its

headquarters from Hong Kong to London.In India, the introduction of HSBC Bank canbe dated as early as the year 1853, with the establishment of the Mercantile Bank of India

in Mumbai. Currently, HSBC Group operates through a number of its subsidiaries in

India, viz. The Hongkong and Shanghai Banking Corporation Limited (HSBC), HSBC

Asset Management (India) Private Limited, HSBC Global Resourcing / HSBC Electronic

Data Processing (India) Private Limited, HSBC Insurance Brokers (India) Private

Limited, HSBC Operations and Processing Enterprise (India) Private Limited, HSBC

Private Equity Management (Mauritius) Limited. HSBC Bank is well known for having

established the first ATM (Automatic Teller Machine) in India in the year 1987. As of

April 2009, the bank is present in many prominent cities of the country including

Mumbai, New Delhi, Bangalore, Hyderabad, Jaipur, Chandigarh etc.


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COMPANY PROFILE

Housing Development Finance Corporation Limited, more popularly known

as HDFC Bank Ltd, was established in the year 1994, as a part of the liberalization of the Indian

Banking Industry by Reserve Bank of India (RBI). It was one of the first banks to receive an 'in

principle' approval from RBI, for setting up a bank in the private sector. The bank was

incorporated with the name 'HDFC Bank Limited', with its registered office in Mumbai. The

following year, it started its operations as a Scheduled Commercial Bank. Today, the bank boasts

of as many as 1412 branches and over 3275 ATMs across India.

Amalgamations

In 2002, HDFC Bank witnessed its merger with Times Bank Limited (a private sector bank

promoted by Bennett, Coleman & Co. / Times Group). With this, HDFC and Times became the

first two private banks in the New Generation Private Sector Banks to have gone through a

merger. In 2008, RBI approved the amalgamation of Centurion Bank of Punjab with HDFC Bank.

With this, the Deposits of the merged entity became Rs. 1,22,000 crore, while the Advances were

Rs. 89,000 crore and Balance Sheet size was Rs. 1,63,000 crore.

Tech-Savvy

HDFC Bank has always prided itself on a highly automated environment, be it in terms of

information technology or communication systems. All the braches of the bank boast of online

connectivity with the other, ensuring speedy funds transfer for the clients. At the same time, the

bank's branch network and Automated Teller Machines (ATMs) allow multi-branch access to

retail clients. The bank makes use of its up-to-date technology, along with market position and

expertise, to create a competitive advantage and build market share.

Capital Structure

At present, HDFC Bank boasts of an authorized capital of Rs 550 crore (Rs5.5 billion), of this the

paid-up amount is Rs 424.6 crore (Rs.4.2 billion). In terms of equity share, the HDFC Group


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holds 19.4%. Foreign Institutional Investors (FIIs) have around 28% of the equity and about

17.6% is held by the ADS Depository (in respect of the bank's American Depository Shares

(ADS) Issue). The bank has about 570,000 shareholders. Its shares find a listing on the Stock

Exchange, Mumbai and National Stock Exchange, while its American Depository Shares are

listed on the New York Stock Exchange (NYSE), under the symbol 'HDB'.


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BRIEF HISTORY

HDFC BankLtd. (BSE: 500180, NYSE: HDB) is a major Indian financial services company

based in Mumbai, incorporated in August 1994, after the Reserve Bank of India allowed

establishing private sector banks. The Bank was promoted by the Housing Development Finance

Corporation, a premier housing finance company (set up in 1977) of India. HDFC Bank has 1,412

branches and over 3,295 ATMs, in 528 cities in India, and all branches of the bank are linked on

an online real-time basis. As of September 30, 2008 the bank had total assets of INR 1006.82

billion.[4]

For the fiscal year 2008-09, the bank has reported net profit of Rs.2,244.9 crore, up 41%

from the previous fiscal. Total annual earnings of the bank increased by 58% reaching at

Rs.19,622.8 crore in 2008-09.

HDFC Bank is one of theBig Four Banks of India, along with State Bank of India, ICICI Bank

and Axis Bank its main competitors.

HDFC Bank was incorporated in the year of 1994 by Housing Development Finance Corporation

Limited (HDFC), India's premier housing finance company. It was among the first companies to

receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the

private sector.The Bank commenced its operations as a Scheduled Commercial Bank in January

1995 with the help of RBI's liberalization policies.

In a milestone transaction in the Indian banking industry, Times Bank Limited (promoted by

Bennett, Coleman & Co. / Times Group) was merged with HDFC Bank Ltd., in 2000. This was

the first merger of two private banks in India. As per the scheme of amalgamation approved by

the shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank

received 1 share of HDFC Bank for every 5.75 shares of Times Bank.


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

1,000. The amalgamated bank emerged with a strong deposit base of around Rs. 1,22,000 crore

and net advances of around Rs. 89,000 crore. The balance sheet size of the combined entity is

over Rs. 1,63,000 crore. The amalgamation added significant value to HDFC Bank in terms of

increased branch network, geographic reach, and customer base, and a bigger pool of skilled

manpower.

Business focus

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

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

providing working capital finance, trade services, corporate finance and merchant banking. It is

also providing sophisticated product structures in areas of foreign exchange and derivatives,

money markets and debt trading and equity research.

Wholesale banking services

The Bank's target market ranges from large, blue-chip manufacturing companies in the Indian

corp to small & mid-sized corporates and agri-based businesses. For these customers, the Bank

provides a wide range of commercial and transactional banking services, including working

capital 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. HDFC Bank has made significant inroads into the banking consortia of a number ofleading 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.


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Retail banking services

The objective of the Retail Bank is to provide its target market customers a full range of financialproducts 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, NetBanking and Mobile Banking.

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 2009, the bank had a total card base (debit and

credit cards) of over 13 million. The Bank is also one of the leading players in the merchant

acquiring business with over 70,000 Point-of-sale (POS) terminals for debit / credit cards

acceptance at merchant establishments. The Bank is 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.

Treasury

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

Local Currency Money Market & Debt Securities, and Equities. These services are provided

through the bank's Treasury team. To comply with statutory reserve requirements, the bank is

required to hold 25% of its deposits in government securities. The Treasury business is

responsible for managing the returns and market risk on this investment portfolio.


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Distribution Network

HDFC Bank is headquartered in Mumbai. The Bank has an network of 1,725 branches spread in

771 cities across India. All branches are linked on an online real-time basis. Customers in over

500 locations are also serviced through Telephone Banking. The Bank has a presence in all major

industrial and commercial centres across the country. Being a clearing/settlement bank to various

leading stock exchanges, the Bank has branches in the centres where the NSE/BSE have a strong

and active member base.

The Bank also has 3,898 networked ATMs across these cities. Moreover, 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

WIDERANGEOF PRODUCTS

Personal Banking

y Savings Accountsy Salary Accountsy Current Accountsy Fixed Depositsy Dmat Accounty Safe Deposit Lockersy Loansy Credit Cardsy Debit Cardsy Prepaid Cardsy Investments & Insurancey Forex Servicesy Payment Services


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y NetBankingy InstaAlertsy MobileBankingy InstaQueryy ATMy PhoneBanking

NRI Banking

y Rupee Savings Accountsy Rupee Current Accountsy Rupee Fixed Depositsy Foreign Currency Depositsy Accounts for Returning Indiansy Quickremit (North America, UK, Europe, Southeast Asia)y IndiaLink (Middle East, Africa)y Cheque LockBoxy Telegraphic / Wire Transfery Funds Transfer through Cheques / DDs / TCsy Mutual Fundsy Private Bankingy Portfolio Investment Schemesy Loansy Payment Servicesy NetBankingy InstaAlertsy MobileBankingy InstaQueryy ATMy PhoneBanking


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REVIEWOFLITERATURE

Theoretical framework, background theory:

The literature review examines recent research studies, company data, or industry

reports that acts as a basis for the proposed study. The literature review may also explain the need

for the proposed work to appraise the shortcomings and/or informational gaps in secondary data

sources. in this research project theoretical framework consist terms which is useful for research

analysis.

Market Mapping:

Market mapping is used to develop a clear understanding of how a market actually

works, looking at both the routes or channels to market and the role of influencers. A key stage in

market mapping is to identify who makes the decision between alternative offers, as it is on these

individuals/departments that the segmentation review will focus.

Market Research:

Market research involves the systematic gathering, recording and analyzing of data

about customers, competitors and the market. This links marketers to consumers by supplying

essential information to solve marketing challenges and help with marketing decisions.

The global trend towards consolidation in the financial sector has focused the attention of

policymakers on its potential economic consequences. This can be daunting, because the range of

issues is expansive and the economic literature is by no means conclusive. To appropriately

address consolidation, policy-makers need to consider how it could affect their overall objective

for the financial system, which is to maximize social welfare. Although the financial system

comprises financial institutions, financial markets, and infrastructure arrangements such as the

clearing and settlement systems, this paper focuses on financial institutions, specifically banks. To

understand how the banking system can contribute to social welfare, consider the function of


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banks. They provide financial services necessary for enterprises and consumers to undertake their

business: among other things, they provide a means to hold and exchange financial assets, they

intermediate savings to productive investment through the supply of credit to businesses and

consumers, and they enable risk-sharing. Efficient functioning of these activities contributes to

economic growth. Indeed, the fundamental importance to growth of a well-functioning financial

system generally, and of a banking sector specifically, has been established for some time in the

empirical literature on growth.

1. CUSTOMER RELATIONSHIP MANAGEMENT:

Today, many businesses such as banks, insurance companies, and other service providers realize

the importance of Customer Relationship Management (CRM) and its potential to help them

acquire new customers, retain existing ones and maximize their lifetime value. At this point, close

relationship with customers will require a strong coordination between IT and marketing

departments to provide a long-term retention of selected customers. This paper deals with the role

of Customer Relationship Management in banking sector and the need for Customer Relationship

Management to increase customer value by using some analitycal methods in CRM applications.

1.1 CRM Objectives in Banking Sector

The idea of CRM is that it helps businesses use technology and human resources gain insight into

the behavior of customers and the value of those customers. If it works as hoped, a business can:

provide better customer service, make call centers more efficient, cross sell products more

effectively, help sales staff close deals faster, simplify marketing and sales processes, discover

new customers, and increase customer revenues. It doesn't happen by simply buying software and

installing it. For CRM to be truly effective, an organization must first decide what kind of

customer information it is looking for and it must decide what it intends to do with that

information. For example, many financial institutions keep track of customers' life stages in order

to market appropriate banking products like mortgages or IRAs to them at the right time to fit

their needs. Next, the organization must look into all of the different ways information about

customers comes into a business, where and how this data is stored and how it is currently used.

One company, for instance, may interact with customers in a myriad of different ways including

mail campaigns, Web sites, brick-and-mortar stores, call centers, mobile sales force staff and


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marketing and advertising efforts. Solid CRM systems link up each of these points. This collected

data flows between operational systems (like sales and inventory systems) and analytical systems

that can help sort through these records for patterns. Company analysts can then comb through the

data to obtain a holistic view of each customer and pinpoint areas where better services are

needed. In CRM projects, following data should be collected to run process engine:

1) Responses to campaigns

2) Shipping and fulfillment dates

3)Sales and purchase data

4) Account information

5) Web registration data

6) Service and support records

7) Demographic data

8) Web sales data.

2. CUSTOMER SATISFACTION IN BANKING SECTOR

Banking operations are becoming increasingly customer dictated. The demand for 'banking

supermalls' offering one-stop integrated financial services is well on the rise. The ability of banks

to offer clients access to several markets for different classes of financial instruments has become

a valuable competitive edge. Convergence in the industry to cater to the changing demographic

expectations is now more than evident. Bancassurance and other forms of cross selling and

strategic alliances will soon alter the business dynamics of banks and fuel the process of

consolidation for increased scope of business and revenue. The thrust on farm sector, health

sector and services offers several investment linkages. In short, the domestic economy is an

increasing pie which offers extensive economies of scale that only large banks will be in a

position to tap. With the phenomenal increase in the country's population and the increased

demand for banking services; speed, service quality and customer satisfaction are going to be key

differentiators for each bank's future success. Thus it is imperative for banks to get useful

feedback on their actual response time and customer service quality aspects of retail banking,

which in turn will help them take positive steps to maintain a competitive edge

2.1 The Need to Measure Customer Satisfaction:


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Satisfied customers are central to optimal performance and financial returns. In many places in

the world, business organizations have been elevating the role of the customer to that of a key

stakeholder over the past twenty years. Customers are viewed as a group whose satisfaction with

the enterprise must be incorporated in strategic planning efforts. Forward-looking companies are

finding value in directly measuring and tracking customer satisfaction (CS) as an important

strategic success indicator. Evidence is mounting that placing a high priority on CS is critical to

improved organizational performance in a global marketplace.

With better understanding of customers' perceptions, companies can determine the actions

required to meet the customers' needs. They can identify their own strengths and weaknesses,

where they stand in comparison to their competitors, chart out path future progress and

improvement. Customer satisfaction measurement helps to promote an increased focus oncustomer outcomes and stimulate improvements in the work practices and processes used within

the company.

3. TECHNOLOGY IN BANKING SECTOR

The Banking sector in India has experienced a rapid transformation. Just about a decade back this

sector was limited to the sarkari (read nationalized) and co-operative banks. Then came the multi-

nationalbanks,butthese were confined to serving an elite few.

One could regard the past as the 'medieval ages' in the banking industry, wherein every branch of

the same bank acted as an independent information silo, and multi-channel banking (ATMs, Net

banking, tele-banking, etc) was almost non-existent.

3.1 Pressing issues

Today banks have to look much beyond just providing a multi-channel service platform for its

customers. There are other pressing issues that banks need to address in order to chalk-out a

roadmap for the future. Here are the top three concerns in the mind of every bank's CEO.


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3.1.1 Customer retention: Customer retention is one of the main priorities for banks today. With

the entry of new players and multiple channels, customers have become more discerning and less

'loyal' to banks. Given the various options, it is now possible to open a new account within

minutes. Or for that matter shift accounts within a couple of hours. This makes it imperative that

banks provide best levels of service to ensure customer satisfaction.

3.1.2 Cost pressures: Cost pressures come into play when banks are not able to afford the cost of a

certain service or initiative although they want to or need to have it in place. This is primarily

because the cost structure at the backend is not efficient enough to offer that kind of service to the

marketplace.

As Gunit Chadha, MD & CEO, IDBI Bank puts it, "In today's world of narrowing margins, a

serious look at costs is definitely an imperative."

3.1.3 Increased competition: The entry of new players into the banking space is leading to

increased competition. A recent example would be of Kotak Mahindra Finance Limited

(KMFL)a financial services company focused on investment consulting, auto finance,

insurance, etcmorphing into Kotak Bank. Many other such players are waiting on the sidelines.

Technology makes it easier for any company with the right channel infrastructure and money

reserves to get into banking. This has been one of the major reasons behind this kind of

competition from players who do not have a banking background. Kotak Bank overcame the

initial costs of setting up its own ATM network by getting into a sharing agreement with UTI

bank.

3.2 REDEFINING OBJECTIVES

To cope with cost pressures and increased competition as well as to retain existing customers,

banks have started venturing into newer territories.

This is one of the main reasons why banks are focused on retail banking in a big way. The main

advantage of getting into retail banking is that the risks involved are lesser in this segment. There

are lower Non Performing Assets (NPAs) in retail banking. This is one of the reasons why loans


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such as those for housing, automotive, etc are being touted by banks like never before. Credit

cards and debit cards is another focus area for banks.

With this banks have redefined their business priorities. They are now focused on:

y Cost reductiony Product differentiationy Customer-centric services

Although the ways in which banks implement these vary, the underlying objectives remain the

same.

3.2.1 Cost reductions

Reduced costs basically translate to higher profit margins. If banks can reduce costs, it can go a

long way in increasing profits.

The focus is on increasing the profit margins by cutting costs where it matterson the operations

side. Banks have woken up to the fact that they need to get into shape fast in order to handle

competition.

"Banks have been increasingly facing sliding margins and fierce competition. It is imperative for

them to increase the volumes and reduce the cost of operations," says K.P. Padmakumar,

Chairman, Federal Bank.

3.2.2 Differentiation

The customer is interested in how he/she can benefit from the bank and its products. That's why it

becomes necessary for a bank to differentiate its products from the others. Some of the ways in

which differentiation can be introduced are through specialization, new products, and increasing

the added value.

Specialization basically means that the bank gets involved only in selected areas. For example,

the bank might be getting involved only in housing finance. Or, it could be limiting its services


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just for corporate banking clients. Another way to specialize could be by handling just specific

sets of portfolios.

Banks can differentiate themselves by adding new products to their range of services. This will

provide the bank with better yields per contact. Increasing the added value of products is another

way of differentiation for banks. Operational excellence is also a key factor in effective

differentiation from the competition.

3.2.3 Customer-centric model

Indian banks have realized that it no longer pays to have a 'transaction-based' operating model.

This has led to the development of a relationship oriented model of operations focusing on

customer-centric services.

While banks have to ensure product superiority and operational excellence, the biggest challenge

today is to establish customer intimacy without which the other two are meaningless.


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OBJECTIVES

Objective of the Project:

Primary Objective

To find out the Satisfaction of the HDFC Bank Customers.

Secondary Objective

Sales of Saving Account


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Research Methodology

RESEARCH PLAN:

Preliminary Investigation:

In which data on the situation surrounding the problems shall be gathered to arrive at

The correct definition of the problem.

An understanding of its environment.

Exploratory Study:

To determine the approximate area where the problem lies.

RESEARCH DESIGN:

It is a plan of action to be carried out in connection with the research project. It is the guidelinefor the researcher to enable him to keep track of his action and to know whether he was moving in

the right direction or not. Research was initiated by examining the secondary data to gain insight

into the problem. By analyzing the secondary data, the study aim is to explore the short comings

of the present system and primary data will help to validate the analysis of secondary data besides

on unrevealing the areas which calls for improvement.

DEVELOPING THERESEARCH PLAN:

The data for this research project has been collected through self Administration. Due to time

limitation and other constraints direct personal interview method is used. A structured

questionnaire was framed as it is less time consuming, generates specific and to the point

information, easier to tabulate and interpret. Moreover respondents prefer to give direct answers.


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In questionnaires open ended and closed ended, both the types of questions has been used.

COLLECTIONOF DATA:

Secondary Data:

It was collected from internal sources. The secondary data was collected

on the basis of organizational file, official records, news papers, magazines, management books

preserved information in the companys database and website of the company.

Primary data:

All the people from different profession were personally visited and

interviewed. They were the main source of Primary data. The method of collection of primary

data was direct personal interview through a structured questionnaire.

SAMPLING PLAN:

Since it is not possible to study whole universe, it becomes necessary to take sample from the

universe to know about its characteristics.

Sampling Units:

Different professionals Chartered Accountants, Tax Consultants, Lawyers,

Business Man, Professionals and House Wives of NAGPUR.

Sample Technique: Random Sampling.

Research Instrument: Structured Questionnaire.

Contact Method: Personal Interview.


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SAMPLE SIZE:

My sample size for this project was 100 respondents. Since it was not possible to cover the whole

universe in the available time period, it was necessary for me to take a sample size of 100

respondents.

DATACOLLECTION INSTRUMENT DEVELOPMENT:

The mode of collection of data will be based on Survey Method and Field Activity. Primary

data collection will base on personal interview. I have prepared the questionnaire according to the

necessity of the data to be collected.

The purpose of the methodology section is to describe the research procedure. This includes the

overall research design, data collection, data interpretation and research report preparation


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DATAANALYSIS, RESULTS AND INTERPRETATION

Q1. Which type of account do you hold?

a. Current Account b. Saving Account c. Fixed Account d. Salary AccountType of account No of respondent Percentage

Current Account 15 15%

Saving Account 62 62%

Fixed Account 13 13%

Salary Account 10 10%

Objective: This question is to know about the type of account customer hold.

Interpretation: The above analysis shows majority of people hold saving account that is 62%

15% hold current account 13% hold fixed account and 10%hold salary account.

15

62

13

10

NO OF RESPONDANCE

Current Account

Saving Account

Fixed Deposit

Salary Account


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Q2. What are the reason for selecting HDFC Bank?

a. Accessibility b. Service c. Companay A/C d. Brand Name

Reason No of respondent Percentage

Accessibility 18 18%

Service 32 32%

Companay A/C 12 12%

Brand Name 38 38%

Objective: This question is to know about the reason for selecting Hdfc bank.

Interpretation: The above analysis shows majority of people said that they select Hdfc bank

Because of brand name that is 38%, 32% customer said they select Hdfc bank because of service.18% said because of Accessibility and 12% because of Companay account.

18

32

12

38

No of Respondent

Accessibility

Service

Companay A/C

Brand Name


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Q3. Kindly rate the following on a scale of 1-5. Where 1 is least & 5 is Most.

1. Not Helpful 2. Less Helpful 3. Partially Helpful 4. Helpful 5. Very Helpful

3a) Behaviour of bank staff.

Scale No of respondent Percentage

Not Helpful 2 2%

Less Helpful 8 8%

Partially Helpful 12 12%

Helpful 10 10%

Very Helpful 68 68%

Objective: This question is to know about the behaviour of the bank staff.

Interpretation: The above analysis shows that the behaviour of the bank staff is very helpfulthat is 68%, 12% said the behaviour is partially helpful ,10% said it is helpful ,8% said less helpfull and 2%said not helpful.

28

12 10

68

2%

8%

12%10%

68%

0

10

20

30

40

50

60

70

80

Not

Helpful

Less

Helpful

Partially

Helpful

Helpful Very

Helpful

Percentage

No of respondent


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Q4.3b) Do you find Convenience in opening a bank A/C.

1. Yes 2. No

No of respondent Percentage

Yes 95 95%

No 5 5%

Objective: This question is to know that when customer goes to open a account do they find it

convenience..

Interpretation: The above analysis shows that 95% customer said that they find convenience in

opening a account and 5% said they dont find convenience in opening bank account.

0

10

20

30

40

5060

70

80

90

100

f res

e

terce

tage

95

95%5

5%

Yes


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Q5.3c.) Time taken to make a Pay order/DD

1. Less 2. More

No of respondent PercentageLess 93 93%

More 7 7%

Objective: This question is to know that when customer goes to bank for pay order or DD the

time taken is more or less.

Interpretation: The above analysis shows that the time taken is less 93% customer said, and 7%

said the time taken to make pay order or DD is more.

93

93%

7

7%0

10

20

30

40

50

60

70

80

90

100


Less

More


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Q6.3d.) Availability of A/C related Information

1. Yes 2. No

No of respondent PercentageYes 95 95%

No 5 5%

Objective: This question is to know that the availability of a/c related information when

Customer wants to know.

Interpretation: The above analysis shows that the availability of a/c related is given to them

When they ask for that is 95% and 5% said it is not .

0

10

20

30

40

50

60

70

80

90

100


95

95%

5

5%

No

Yes


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Q7.3e.) Location of the bank

1.Not important 2. Less important 3. Partially important 4. important 5. Very important

Scale No of respondent Percentage Not important 5 5%

Less important 8 8%

Partially important 9 9%

Important 30 30%

Very important 48 48%

Objective: This question is to know about the location of the bank.

Interpretation: The above analysis shows that majority of the customer said that theLocation of the bank is very important that 48%, 30% customer said it is important 9%Customer said it is partially important , 8% said it is less important and 5% said it is not important

to them.

58 9

30

48

5% 8% 9% 30% 48%0

10

20

30

40

50

60

Not important Less important Partially

important

important Very important

No of respondent

Percentage


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Q8.3f.) Ambience of the bank


Scale No of respondent Percentage Not important 2 2%

Less important 13 13%


Important 19 19%


Objective: This question is to know about the ambience of the bank.

Interpretation: The above analysis shows that 50% customer said it is very important,

19% said important 16% said partially important 13% said that it is less important and 2%Said it is not important to them.

0

5

10

15

20

25

30

35

40

45

50

Not

important

Less

important

Partially

important

Important Very

important

2

13

16

19

50

1.40% 8.70% 10.70% 12.70% 33.40%

No of respondent

Percentage


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Q9.3g.) ATM Service of the bank


Scale No of respondent Percentage Not important - -

Less important - -


Important 15 15%


Objective: This question is to know about the ATM Service of the bank.

Interpretation: The above analysis shows that 80% customer said it is very important,

15% said important 5% said partially important.

0

10

20

30

40

50

60

70

80

90

Partially important important Very important

80

5%

15%

80%

Percentage -

No of respondent - -


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Q10.3h.) Phone banking Service of the bank


Scale No of respondent Percentage Not Helpful 43 43%

Less Helpful 32 32%


Helpful 9 9%

Very Helpful 10 10%

Objective: This question is to know about the Phone banking Service of the bank.

Interpretation: The above analysis shows that 43% customer said that it is not helpful

To them, 32% said less helpful 6% said partially helpful 9% said it is help ful and 10% said that itis very helpful to them.

43

32

6

9 10

0

5

10

15

20

25

30

35

40

45

50

Not Helpful Less Helpful Partially

Helpful

Helpful Very Helpful

No of respondent

Percentage


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Q11.3i.) Convenience of depositing/withdrawing money from bank

1.Yes 2. No


Yes 98% 98%

No 2% 2%

Objective: This question is to know about the Convenience of depositing/withdrawing money

from bank.

Interpretation: The above analysis shows that 98% customer said that they find Convenience of

depositing/withdrawing money from bank and 2% said that they dont find Convenience of

depositing/withdrawing money from bank

2 2%

98

98%

0

20

40

60

80

100

120


Yes

No


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Q12.3j.) Availability on information on various product of the bank


Scale No of respondent Percentage Not Helpful 10 10%

Less Helpful 12 12%


Helpful 20 20%

Very Helpful 39 39%

Objective: This question is to know about the availability on information on various product of

the bank.

Interpretation: The above analysis shows that 39% customer said that availability on

information on various product of the bank. is very helpful 20% customer said that it is helpful

and 19% said it is partially helpful 12% said that it is less helpful and 10% of the customer said

that it is not helpful to them.

0

5

10

15

20

25

30

35

40

Not Helpful Less Helpful Partially

Helpful

Helpful Very Helpful

1012

19 20

39

6.70% 8% 12.70% 13.40% 26%

No of respondent

Percentage


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Q13.

3k.) Problem Resolution

1. Yes No


Yes 95 95%

No 5 5%

Objective: This question is to know about the Problem Resolution which customer faces in bank.

.

Interpretation: The above analysis shows that 95% of the customer are satisfied when they faceproblem because the problem is being resolved by the bank staff and 5% said that they are

Not satisfied when they face problem.

0

10

20

30

40

50

6070

80

90

100


95

95%5

5%

Yes

No


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FINDINGS

y Customer are more concentrated towards saving a/c i.e. approx 62%.y The majority of people said that they select Hdfc bank, Because of brand name that is

38%, 32% customer said they select Hdfc bank because of service. 18% said because of

accessibility and 12% because of company account.

y The behaviour of the bank staff is very helpful that is 68%, 12% said the behaviour ispartially helpful, 10% said it is helpful, 8% said less help full and 2% said not helpful.

yThe above analysis shows that 95% customer said that they find convenience in opening aaccount and 5% said they dont find convenience in opening bank account.

y The time taken is less 93% customer said, and 7% said the time taken to make pay orderor DD is more.

y The availability of a/c related is given to them when they ask for that is 95% and 5% saidit is not.

y The majority of the customer said that the location of the bank is very important that 48%,30% customer said it is important, 9% Customer said it is partially important, 8% said it is

less important and 5% said it is not important to them.

y 50% customer said that ambience is very important, 19% said important 16% saidpartially important 13% said that it is less important and 2% said it is not important to

them.

y 80% customer said ATM services is very important, 15% said important 5% said partiallyimportant.

y 43% customer said that phone banking services is not helpful to them, 32% said lesshelpful 6% said partially helpful 9% said it is help full and 10% said that it is very helpful

to them.

y The analysis shows that 98% customer said that they find Convenience ofdepositing/withdrawing money from bank and 2% said that they dont find Convenience

of depositing/withdrawing money from bank.


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y The analysis shows that 39% customer said that availability on information on variousproducts of the bank is very helpful 20% customer said that it is helpful and 19% said it is

partially helpful 12% said that it is less helpful and 10% of the customer said that it is not

helpful to them.

y The analysis shows that 95% of the customer are satisfied when they face problem because the problem is being resolved by the bank staff and 5% said that they are not

satisfied when they face problem.


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CONCLUSIONS

Through this project, it could be concluded that people are not aware about the variousproducts of the bank.

Report also explores that, Customer choose the Bank because of Brand name.

The survey throws light on Issues that the customer faces while operating account.

The major competitors for HDFC bank are State Bank of India, Icici bank,

By this report, company can understand the requirement of customers.

Most of customer are satisfied with HDFC Bank .


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LIMITATIONS

y Survey was only conducted in BUTIBORI & MIDCy Only 100 questionnaires were filled in different age and occupation groups due to time

constraint.

y Combining question 1 and 2 it becomes obvious that most people are satisfied about theSaving A/C of HDFC. The interpretation doesnt reveal the satisfaction of other products.

y Since 70% of my sample are CASA A/C holders so its wrong to conclude that very fewpeople use FD, Mutual Fund, Dmat.

y Since my study did not include the income of the people I was not able to categorize theuse of the product with the income group and study if any correlation existed.


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RECOMMENDATIONS

y More number of ATMs in the Butibori & MIDC.

y More aggressive sale is needed for professors, lecturers, and staff members who the bestcustomer of savings accounts. A Special students' savings account with AQB of fewer

amounts could be launched Savings account for working professionals and self employed

youths could be started with facilities like free registration in top business consultancies,

job consultancies, hassle-free personal loans, free dmat account and discounted

membership in some reputed clubs.

y Ensure the best after sale services by replacing the faulty ones immediately after gettingcomplain.

y A group promotional activity aiming, encouraging card holder to use their card to itsfullest should be undertaken.

y The timings of the bank to be extended from 8a.m to 6p.m.

y With every purchase, card holders be awarded with some credit points and on the end ofevery quarter , special gifts should be given or discount offers on some items produced by

some company can be given, which will be sponsored by the producer, the shopkeeper and

the banker.

y There should be no hidden charges and to be explained when demanded for.


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APPENDIX

QuestionnaireRespected/Sir/Madam,

I am a student of INDIRA SCHOOL OF BUSINESS STUDIES hereby

conducting a survey on Customers Perception Towards the Product and Service Offered by

HCDF Bank in Rural Areas And Comparative AnalysisI assure you this information will be

used for education purpose only.

Q1. Which type of A/C do you hold?

a. Current Account b. Saving Account c. FD d. Salary Account

Q2. What are the reason for selecting HDFC Bank?

a. Accessibility b. Service c. Companay A/C d. Brand Name

Q3. Kindly rate the following on a scale of 1-5. Where 1 is least & 5 is Most.


3 a) Behaviour of bank staff.

3 b.) Convenience in opening a bank A/C.

1. Yes 2. No

3 c.) Time taken to make a Pay order/DD

1. Less 2. More

3 d.) Availability of A/C related Information

1. Yes 2. No

3 e.) Location of the bank


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3 f.) Ambience of the bank


3 g.) ATM Service of the bank


3 h.) Phone banking Service of the bank


3 i.) Convenience of depositing/withdrawing money from bank

1.Yes 2. No

3 j.) Availability on information on various product of the bank


3 k.) Problem Resolution

1. Yes No

Personal Information:

Name:-...................................................................................

AgeGender:-M/F.

Designation:-Company name:-

Address:-...

Phone No:-E-mail address:-..


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BIBLOGRAPHY

Kotler Philip (2001) Marketing Management (10TH and 12th Edition) Prentice Hall IndiaPrivate Limited, New Delhi.

Krishnaswami O. R. & Ranganatham M. (2007) Methodology Of Research In SocialSciences (2nd Revised) Himalaya Publication House, New Delhi.

Kothari C. R. (2004) Research methodology (2nd Edition) New Age InternationalPublishers, New Delhi.

Websites:-

y www.hdfcbank.comy www.icicibank.comy www.axisbank.comy www.sbi.comy www.google.comy www.kotak.comy www.yahoofinance.com

Hdfc Bank Final

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