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Organization Of Mr.Ravindra singh Finance Manager, HDFC BANK.






SITAPUR ROAD, LUCKNOW-21 (A Constitute College of G.B.T.U.)

This is certified that Mr. /Ms. Himanshu Pal, Roll No. 1105270022 Of MBA IIIrd (2011-2013) batch has completed his/her Summer Training Project Report at AN ANALYSIS OF CUSTOMER SATISFACTION OF BANK WITH SPECIAL REFERENCE TO HDFC BANK in partial fulfillment of the requirement for the award of degree of Master of Business Administration (MBA).


Prof. (Dr.) DN Kakkar Head MBA Department I.E.T. Lucknow

At the very outset I would like to express my sincere gratitude to HDFC BANK for providing me with the opportunity to work with them and to undertake this project on CUSTOMER SATISFACTION IN SPECIAL REFERENCE WITH HDFC BANK I feel proud to getting such opportunity to get myself associated with esteemed organization like I am gratefully to Dr.(prof.) D.N.Kakkar, Head,MBA, Institute Of Engineering & Technology, for providing me the platform and granting me the permission to undergo the summer training in HDFC BANK .. This project comes out to be a great source of learning and experience. A lot of efforts have been put by various people to make this project a success This has greatly enhanced my knowledge about the vast field of FINANCE that an individual prefers todays scenario I gratefully acknowledge my indebtedness to Mr.Ravindra Singh(Finance Manager) for allowing to me to undergo a training session in his DELHI(chandni chowk)branch and gather an in depth knowledge about me for customer satisfaction of HDFC BANK . He was supportive throughout the proceeding of this project and inspired me all the way I wish to express my deep sense to gratitude and indebtedness to Mr. MOHNISH KUMAR, my faculty mentor for providing me all facilities and constructive criticism, encouragement and parental guidance my project work. I also wish to thanks him providing me his precious any time I wanted I am extremely thankful to my team member who contributed their efforts and continuous encouragement in making this project successfully. Last but not the least; I am extremely thankful to my family members and my friends for their constant support and valuable guidance. I hope I can build upon the knowledge and experience that I have gained here and make a valuable contribution towards there industry coning in future (HIMANSHU PAL)

I HIMANSHU PAL student of M.B.A. here by declares that the project report titled AN ANALYSIS OF CUSTOMER SATISFACTION OF BANK WITH SPECIAL REFERENCE TO HDFC BANK is completed and submitted under the guidance of Mr. MOHNISH KUMAR(Faculty) is my work. The imperial finding in this report is based on the data collected by me. This project has not been submitted to Institute of Engineering and Technology, Lucknow. in partial fulfillment of Master of Business Administration for the purpose of compliance of any requirement of degree.

HIMANSHU PAL ROLL NO.-1105270022 MBA 2nd year.

The report contains the organizational study done at HDFC Bank. The report title is AN ANALYSIS OF CUSTOMER SATISFACTION OF BANK WITH SPECIAL REFERENCE TO HDFC BANK. The report gives an overview of the banking Sector and company profile. And awareness of customers about different types of products and services offered by HDFC Bank.This study was conducted to find out the customer satisfaction regarding HDFC bank.The methodology adopted for the study was through a structured,liket scale questionnaire, which is targeted to the different persons in delhi&noida. For this purpose sample size of 100 was taken. The data collected from the different persons was analyzed thoroughly and presented in the form of charts and tables. HDFC must advertise regularly and create brand value for its products and services. Most of its competitors like ICICI, Axis, kotak Mahindra and nationalized banks use television advertisements to promote their products. The Indian consumer has a false perception about private banks they feel that it would not safe.Safety and returns are the two main reasons people invest in banks. On the whole HDFC bank is a good place to work at. Every new recruit is provided with extensive training on the products of HDFC. This training enables an advisor/sales manager to market the policies better. The company should try to create awareness about itself in India. . With an improvement in the sales techniques used, a fair bit of advertising and modifications to the existing product portfolio, HDFC would be all set to capture the banking market in India as it has around the globe.

S.No .


P. No.
7 14 19 23 25 28 33 34 37 42 45 60 61 62 63 64 65


What is customer satisfaction?

Customer satisfaction refers to how satisfied customers are with the products or services they receive from a particular agency. The level of satisfaction is determined not only by the quality and type of customer experience but also by the customers expectations. A customer may be defined as someone who has a direct relationship with, or is directly affected by your agency and Receives or relies on one or more of your agencys services or products. Customers in human services are commonly referred to as service users, consumers or clients. They can be individuals or groups. An organization with a strong customer service culture places the customer at the centre of service design, planning and service delivery. Customer centric organizations will: Determine the customers expectations when they plan listen to the customer as they design. Focus on the delivery of customer service activities value customer feedback when they measure performance.

There are a number of reasons why customer satisfaction is important in Banking Sector: Meeting the needs of the customer is the underlying rationale for the existence of community service organizations. Customers have a right to quality services that deliver outcomes. Organizations that strive beyond minimum standards and exceed the expectations of their customers are likely to be leaders in their sector. Customers are recognized as key partners in shaping service development and assessing quality of service delivery. The process for measuring customer satisfaction and obtaining feedback on organizational performance are valuable tools for quality and continuous service improvement


Banking means accepting the deposits from the customers for lending to the needy and extending the other services as to issue of dd etc.nowadays after introduction of private sector banks the banks have become a profit centre and the functions become changed and now banks are doing the insurance and mutual funds also. but nationalised banks are still service oriented in extending loans for Education loan, and rural development activities.A Bank is an organization which lends money to the borrowers for a purposeful task, needed and charge for it. and provides a facility to deposit and withdraw money when


Phase I

The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks, mostly Europeans shareholders. In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. Reserve Bank of India came in 1935. During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the functioning and activities of commercial banks, the Government of India came up with The Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested with extensive powers for the supervision of banking in India as the Banking Authority. During those days public has lesser confidence in the banks. As an aftermath deposit mobilization was slow. Abreast of it the savings bank facility provided by the Postal department was comparatively safer. Moreover, funds were largely given to traders.

PhaseII Government took major steps in this Indian Banking Sector Reform after independence. In 1955, it nationalized Imperial Bank of India with extensive banking facilities on a large scale especially in rural and semi-urban areas. It formed State Bank of India to act as the principal agent of RBI and to handle banking transactions of the Union and State Governments all over the country.Seven banks forming subsidiary of State Bank of India was nationalised in 1960 on 19th July, 1969, major process of nationalisation was carried out. It was the effort of the then Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country were nationalised.Second phase of nationalisation Indian Banking Sector Reform was carried out in 1980 with seven more banks. This step brought 80% of the banking segment in India under Government ownership.The following are the steps taken by the Government of India to Regulate Banking Institutions in the Country: 1949: Enactment of Banking Regulation Act. 1955: Nationalisation of State Bank of India. 1959: Nationalisation of SBI subsidiaries. 1961: Insurance cover extended to deposits. 1969: Nationalisation of 14 major banks. 1971: Creation of credit guarantee corporation. 1975: Creation of regional rural banks. 1980: Nationalisation of seven banks with deposits over 200 crore. After the nationalisation of banks, the branches of the public sector bank India rose to approximately 800% in deposits and advances took a huge jump by 11,000%. Banking in the sunshine of Government ownership gave the public implicit faith and immense confidence about the sustainability of these institutions.


PhaseIII This phase has introduced many more products and facilities in the banking sector in its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his name which worked for the liberalisation of banking practices.The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and net banking is introduced. The entire system became more convenient and swift. Time is given more importance than money.The financial system of India has shown a great deal of resilience. It is sheltered from any crisis triggered by any external macroeconomics shock as other East Asian Countries suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high, the capital account is not yet fully convertible, and banks and their customers have limited foreign exchange exposure.



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 liberalization of Indian banking industry in 1994. The bank was in corporate in Aug. 1994 in the name of HDFC Bank Ltd. With its registered office in Mumbai, India, HDFC Bank commenced operations as scheduled commercial bank in January 1995.

HDFC is India's premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1997, the corporation has maintained a consistent and healthy growth in its operations to remain a market leader in mortgage. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. With its experience in the financial markets, a strong franchise, HDFC was ideally positioned to promote a bank in the Indian environment.

HDFC bank's mission is to be a world class Indian bank. The bank has aim to build sound customer franchises across district business so as to be the prefer provider of banking services in the segment that the bank operates in 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 and regulatory compliance. HDFC bank's business philosophy is based on four core values: 12

1. 2. 3. 4.

Operational Excellence Customer Focus Product Leadership People.

The authorized share capital of HDFC bank as on 31st march 2012 is Rs. 550 crores. The paid-up capital as on said date is 234,66,88,270 equity shares @ Rs.2/- each.


In a mile stone transaction in Indian banking industry, Times bank limited (another new private sector bank promoted by Bennett, Coleman & Co. times group) was merged with HDFC bank ltd., effective February 26, 2000. As per the scheme of amalgamation approved by the share holders of both banks and Reserve bank of India.


HDFC bank has its Headquarters in Mumbai. The bank at present has an enviable network of 2620 branches spread over 1454 cities across the country. All branches are linked on an online real time basis. Customer in 500 locations are also serviced through telephone banking. The banks expansion plans take into account the need to have a presence in all major industrial and commercial centers where its corporate customers are located as well as the need to build a strong retail customer base for both deposits and loans products. Being a clearing settlement bank to various leading stock exchanges, the bank has branches in centers where the NSE/BSE has a strong and active member base. The bank also has a network of 10,316ATM's across their cities.


HDFC bank operates in a highly automated environment in terms of information technology and communication systems. All the bank's branches have connectivity which enables the bank to offer speedy funds transfer facility to its customers. Multi branch access is also provided to retail customers through the branch network and automated teller machines (ATMs) The bank has made substantial efforts and investments in acquiring the best technology available internationally to build the infrastructure for a world class bank has prioritized its engagement in technology and the internet as one of its key goals and has already made significant progress in web enabling its core business. In each office its business, the Bank has succeeded in leveraging its market position, expertise and technology to create a competitive advantage and build market share.



HDFC bank ltd provides various financial products and services. It operates in three segments: Retail Banking, Wholesale Banking, and Treasury. The Retail banking segment provides various deposit products, including savings Accounts, current accounts, fixed deposits, and demat accounts. It also offers Auto, personal, commercial vehicle, home, gold, and educational loans; loans Against securities and property and health care finance Working capital finance, construction equipment finance, and warehouse Receipt loans, as well as credit cards, debit cards, depository, investment Advisory, bill payments, and transactional services. In addition, this segment Sells third party financial products, such as mutual funds and insurance, as Well as distributes life and general insurance products through its tie-ups with insurance companies and mutual fund houses. The wholesale banking Segment provides loans, non-fund facilities, and transaction services to large Corporate, emerging corporate, small and medium enterprise, supply chain, Public sector undertaking, central and state government departments, and Institutional customers. It offers deposit and transaction banking products, Supply chain financing, working capital and term finance, agricultural loans, and funded non-funded treasury, and foreign exchange products. This segments services include trade services, cash management, and money Market, custodial, tax collection, and electronic banking. In addition, it provides correspondent bank services to co-operative banks, private banks, foreign banks, and regional rural banks. The Treasury Services segment operates primarily in areas, such as foreign exchange, money market, interest rate trading, and Equities. As of March 31, 2009 HDFC bank had a network of 1,142 branches And 3,295 automated teller machines in 528 cities in India. The company was founded in 1994 and is based in Mumbai, India.

March 15




Cities Branches ATMs

2008 228 535 1323

2009 316 684 1605

2010 327 761 1977

2011 528 1142 3295

As of March 31, 2010, the Banks distribution network was at 761 Branches and 1977 ATMs in 327 cities as against 684 branches and 1,605 ATMs in 316 cities as of March 31, 2007. Against the regulatory approvals for new branches in hand, the Bank expects to further expand the branch network by around 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 credit cards) increasing from 7 million to 9.2 million. Whilst credit growth in the banking system slowed down to about 22% for the year ended 2010-11 the Banks net advances grew by 35.1% with retail advances growing by 38.6% and wholesale advances growing by 30%, implying a higher market share in both segments.The transactional banking business also registered healthy growth with cash management volumes increased 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% and net non-performing assets at 0.4% of total customer assets.



Scheduled Banks in India (A) Scheduled Commercial Banks

Public sector Banks (28) Nationalized Bank Other Public Sector Banks (IDBI) SBI and its Associates (B) Scheduled Cooperative Banks Scheduled Urban Cooperative Banks (55) Scheduled State Cooperative Banks (31) Private sector Banks (27) Foreign Banks in India (29) Regional Rural Bank (102)

Here we more concerned about private sector banks and competition among them. Today, there are 27 private 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-theart technology and aggressively marketed their products. The Public sector banks are facing a stiff competition from the new private sector banks. The banks which have been setup in the 1990s under the guidelines Of the Narasimham Committee are referred to as NEW PRIVATE SECTOR BANKS



Mr. C.M. Vasudev, (Chairman) Mr. Aditya Puri, (Managing Director) Mr. Keki Mistry Mr. Pandit Palande Mr. Partho Datta Mrs. Renu karnad Mr. A.N. Roy Mr. Harish Engineer Mr. Bobby Parikh (w.e.f. Jan. 9, 2004) Mr. Ashim Samanta Mr. Paresh Sukthankar


Mr. Sanjany Dongre

M/s P.C Hansotia & Co. Chartered Accountant

HDFC BANK HOUSE Senapati Bapat Mart, Lower Parel, Mumbai Tel. No. Fax No. 40013 66521000 24960737

Website : www.



We can identify three distinct phases in the history of Indian banking: 1. Early phase from 1786-1969. 2. Nationalization of banks and up to 1991 prior to banking sector reforms. 3. New phase of Indian banking with the advent of financial banking. Banking in India has its origin as early or Vedic period. It is believed that the transitions from many lending to banking must have occurred even before Manu, the great Hindu furriest, who has devoted a section of his work to deposit and advances and laid down rules relating to the rate of interest. During the mogul period, the indigenous banker played a very important role in lending money and financing foreign trade and commerce. During the days of the East India Company it was the turn of agency house to carry on the banking business. The General Bank of India was the first joint stock bank to be established in the year 1786. The other which followed was the Bank of Hindustan and Bengal Bank. The Bank of Hindustan is reported to have continued till 1906. While other two failed in the meantime. In the first half of the 19th century the East India Company established there banks, The bank of Bengal in 1809, the Bank of Bombay in 1840 and the Bank of Bombay in1843. These three banks also known as the Presidency banks were the independent units and functioned well. These three banks were amalgamated in 1920 and new bank, the Imperial Bank of India was established on 27th January, 1921. With the passing of the State Bank of India Act in 1955 the undertaking of the Imperial Bank of India was taken over by the newly constituted SBI. The Reserve Bank of India (RBI) which is the Central bank was established in April, 1935 by passing Reserve bank of India act 1935. The Central office of RBI is in Mumbai and it controls all the other banks in the country. In the wake of Swadeshi Movement, number of banks with the Indian management were established in the country namely, Punjab National Bank Ltd., Bank of India Ltd., Bank of Baroda Ltd., Canara Bank. Ltd. on 19th July 1969, 14 20

major banks of the country were nationalized and on 15th April 1980, 6 more commercial private sector banks were taken over by the government.

Last five years growth in India

If we look at 5 years historical performance of different types of players in the banking industry, public sector bank has grown its deposits, advances and business per employee by the highest rate 21.7%, 23% and 21.1% respectively. As far as net interest income is concerned, private banks are ahead in the race by reporting 24.2% growth, followed by pubic banks (21.4%) and then by foreign banks (14.8%). Though the growth in the business per employee and profit per employee has been the highest for public sector banks, in absolute terms, foreign banks have the highest business per employee as well as profit per employee.


In the last 5 years, foreign and private sector banks have earned significantly higher return on total assets as compared to their pubic peers. If we look at its trend, foreign banks show an overall decreasing trend, private banks an increasing trend and Public banks have been more or less stagnant. The net NPA of public sector bank was also significantly higher than that of private and foreign banks at the end of FY11, which indicates the asset quality of public banks is comparatively poor. The Capital Adequacy ratio was also very high for private and foreign bank as compared to public banks. In conclusion, we could say that the current position of ROA, Net NPA and CAR of different kinds of players in the industry indicates that going ahead; public banks will have to face relatively more problems as compared to private and foreign banks.


Acceptance of Deposits Making loans & advances Loans Overdraft Cash Credit Discounting of bills of exchange

Agency functions Collection of cheques & Bills etc. Collection of interest and dividends. Making payment on behalf of customers Purchase & sale of securities Facility of transfer of funds To act as trustee & executor.

Safe custody of customers valuable articles & securities.
Underwriting facility Issuing of traveller's cheque letter of credit Facility of foreign exchanges Providing trade information Provide information regarding credit worthiness of their customer.






Loan Product
Auto Loan Loan Against Security Loan Against Property Personal loan Credit card 2-wheeler loan Commercial vehicles finance Home loans Retail business banking Tractor loan Working Capital Finance Construction Equipment Finance Health Care Finance Education Loan Gold Loan

Deposit Product
Saving a/c Current a/c Fixed deposit Demat a/c Safe Deposit Lockers

Investment & Insurance

Mutual Fund Bonds Knowledge Centre Insurance General and Health Insurance Equity and Derivatives Mudra Gold Bar

Credit Card Debit Card Prepaid Card

Payment Services
NetSafe Merchant Prepaid Refill Billpay Visa Billpay

Access To Bank
NetBanking OneView InstaAlert Mobile Banking ATM


------------------------------Forex Services ------------------------------ Product & Services Trade Services Forex service Branch Locater RBI Guidelines

InstaPay DirectPay VisaMoney Transfer eMonies Electronic Funds Transfer Online Payment of Direct Tax

Phone Banking Email Statements Branch Network

Funded Services Non Funded Services Value Added Services Internet Banking

Small and Medium Enterprises

Funded Services Non Funded Services Specialized Services Value added services Internet Banking

Financial Institutions and Trusts


Clearing Sub-Membership RTGS sub membership Fund Transfer ATM Tie-ups Corporate Salary a/c Tax Collection Financial Institutions Mutual Funds Stock Brokers Insurance Companies Commodities Business Trusts


Accounts & Deposits
Rupee Saving a/c Rupee Current a/c Rupee Fixed Deposits Foreign Currency Deposits Accounts for Returning Indians

North America UK Europe South East Asia Middle East Africa Others Quick remit India Link Cheque Lockbox Telegraphic/ Wire Transfer Funds Transfer Cheques/DDs/TCs

Investment & Insurances

Mutual Funds Insurance Private Banking Portfolio Investment Scheme

Home Loans Loans Against Securities Loans Against Deposits Gold Credit Card

Payment Services
Net Safe Bill Pay InstaPay Direct Pay Visa Money Online Donation

Access To Bank
Net Banking One View InstaAlert ATM Phone Banking Email Statements Branch Network


HDFC BANK mission is to be "a World Class Indian Bank", benchmarking

themselves against international standards and best Practices in terms of product offerings, technology, service levels, risk management and audit & compliance. The objective is to build sound customer franchises across 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 Bank's risk appetite. Bank is committed to do this while ensuring the highest levels of ethical standards, professional integrity, corporate governance and regulatory compliance. Continue to develop new product and technology is the main business strategy of the bank. Maintain good relation with the customers is the main and prime objective of the bank.

HDFC BANK business strategy emphasizes the following:

Increase market share in Indias expanding banking and financial services industry by following a disciplined growth strategy focusing on quality and not on quantity and delivering high quality customer service. 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 address inefficiencies in the Indian financial sector. Continue to develop products and services that reduce banks cost of funds. Focus on high earnings growth with low volatility.

TYPES OF HDFC BANK LOANS At different stages of your life, you need money and look for financing from different sources. HDFC Bank India loans have been designed to meet various financing needs that borrowers may have. A variety of loans are available from HDFC Bank for customers coming from different tiers of the society.

About HDFC Bank India Loans

HDFC Bank India loans are known for fast approvals, flexible repayment terms and 29

attractive interest rates. There is a wide variety of loan products provided by HDFC Bank to serve different needs of the customers. Loans are available for individual customers, Non resident Indians, corporate clients, small and medium enterprises (SMEs) and others. HDFC Bank India loans Personal Banking The personal banking division of HDFC Bank offers the following types of personal loan products: Personal loans You can use this loan for financing a marriage or renovation of your home. Home loans These loans can help you make your dream of homeownership true by allowing you to finance the purchase of a new home. Smart Draft These loans come handy when you require extra funds for certain emergency purposes. This is basically a simple-to-use overdraft facility where you can withdraw upto 3 times of your salary. Two wheeler loans These are ideal financing options for purchasing two wheelers. With simple and flexible repayment terms, two wheeler loans offered by HDFC Bank allow you to buy the bike that you have always dreamt about. Used car loans HDFC Bank also offers financing to purchase any used car which has been manufactured in India. New car loans HDFC Bank car loans allow you to purchase new cars at an affordable rate. Educational loans These loans help you finance the higher education of your children. Gold loan With the Gold Loan offered by HDFC Bank, you can immediately avail financing against your gold ornaments. The loan process is easy, there is minimum paperwork and the loan approval is prompt. 30

Loans against property You can avail a loan against your commercial or residential property. You have the opportunity to select between an overdraft facility or an EMI based loan. Loans against securities You can get a loan from HDFC Bank against your securities such as mutual fund units, equity shares, LIC policies, Government of India Relief Bonds, Kisan Vikas Patra, NSC and UTI Bonds (US64 Bonds and 6.60% ARS Bonds). Health care finance HDFC Bank offers financing schemes for purchasing medical equipments to hospitals and diagnostic centers. Loans against rental receivables When you require supplementary financing for your business, HDFC Bank can solve your problems. You can secure a loan against rental receivables and this loan offers you the option to increase your usual cash flow. Commercial Vehicle Finance HDFC Bank also has loan programs for financing purchase of commercial vehicles. The loan procedure is absolutely hassle-free with one of the most attractive terms in India. Tractor Loans HDFC Bank has designed loan programs for financing purchase of tractors. Loan schemes are available with affordable rates and terms. Retail Agricultural Loans These are suitable and hassle-free financing products to fulfill your agricultural production and investment needs. Warehouse receipt loans HDFC Bank offers warehouse receipt loans that help you get better prices and stay away from distress selling of your goods. The process is easy, paperwork is nominal and approval is fast. Construction equipment finance When you are searching for loans for purchasing construction equipments, HDFC Bank is the right place for you. These loans are offered by HDFC Bank with hasslefree terms and conditions and affordable rates. 31

HDFC Bank India loans NRI banking The NRI banking division of HDFC Bank offers the following loan products:

Loan against securities

Home loan HDFC Bank India loans Corporate banking

The corporate banking division of HDFC Bank offers the following loan products:

Bill discounting Working capital finance Short term finance Export credit Term lending Structured finance Agricultural lending Channel financing Vendor financing Dealer financing Structured cash flow financing Credit substitutes




Search for the financial Institution

Evaluation of alternatives

Loan decision

Postpurchase behaviour



Primary objective:
To know the customer satisfaction level and their perception regarding HDFC Bank. To know the customer awareness regarding the Banks products. To know the level of interest of customer regarding the different schemes of bank. To know the preference of customer regarding the extra services. To know the problems of customer regarding bank.

Secondary objectives:
To find out advertisement effectiveness on customer. To know the satisfaction level of customers To know which class of customers is more attracted.

To know more about the overall experience of customers . To study consumer perceptions regarding various promotion schemes in this category and responses toward them.



This project is based on information collected from primary and secondary sources. After the detailed study, an attempt has been made to present comprehensive analysis of customer satisfaction with reference to HDFC bank etc. through various analysis tools to find the customer satisfaction level in areas covered under region. In collecting requisite data and information regarding the topic selected, I met 100 customer and collected the data.

Research Design is a systematic planning, organizing & executing a research project within specified time limit & resource allocation. After deciding the basic aspects of research project, example- formulating research problem, objectives of research, data requirement, sample design & before the commencement of work of research project, the researcher has to prepare research design. The research work will be conducted as per the research design prepared. It is logical & systematic outline of research project prepared for directing, guiding & controlling a research work. This research is DESCRIPTIVE in nature.



The success of any project or market survey depends heavily on the data collection and analysis. It is necessary that the data collected is a reliable data in order to achieve the research objective. All data sources can be classified into two data:


Primary data is the data which are fresh and collected for the first time, and are original in character. There are various Primary data collection techniques, which have helped in data gathering. The primary data collection techniques used in the project is as follows:


Secondary data are those data, which have been already collected or published for the purpose other than specific research need at hand .Secondary data has been collected from various books and internet. This data is simply used up by the researcher for his purpose of collected the data and its use is now not the same. The secondary data source here in this project are:



SAMPLE DESIGN Design is the plan, structure & strategy of investigation conceived so as to attain answer to questions to survey and to control the variances. According to this projects/ surveys the analytical, interpretive/objective design was chosen. Sample Size Our project Guide, keeping in view the time consideration, determined the size of the sample arbitrarily. The sample size have taken 100 CUSTOMER. Sampling Techniques The technique used for sampling is the simple random sampling. Probability sampling is a process of sample selection in which elements are chosen by chance methods such as flipping coins,drawing number of balls from an urn or through tables of random numbers. Research Instruments A printed questionnaire was their to make the survey. The statistical tools for analysis used in this report are bar graphs, pie charts etc. The whole report has been prepared by using Microsoft office 2007.. Sampling plan Sampling unit - Owners of the retail outlets. Sampling size- 100 outlets Sampling procedure- Simple random sampling
Method- Retailers survey.


Accounting to Parasuraman et al, the five dimensions of service quality are reliability, responsiveness, assurance, empathy, and quality of tangibles referred to as SERVQUAL. There are three types of customer expectations predicted service,desired service and adequate service which presents a comparison between customer evaluation of service quality and customer satisfaction (Valerie A. Zeithaml, Lonard L. Berry, and A. Parasuraman, 1993). SERVQUAL is widely used within service industries to understand the perceptions of target customers regarding their service need; it may also be applied internally to understand employee's perception of service quality with the objective of achieving service improvement (Zeithmal, Parasuraman and Berry 1988). SERVQUAL scale is a principal instrument in the services marketing literature forecastessing quality (Parasuraman vd., 1991; Parasuraman vd., 1988). This instrument has been widely utilized by both manager Parasuraman vd., 1991) and academics (Babakus and Boller, 1992; Carman, 1990) to assess customer perceptions of service quality for a variety of services (e.g. Banks, credit card companies, repair and maintenance companies)., The results of the initial published application of the SERVQUAL instrument indicated five dimensions of service quality emerged across a variety of services. These dimensions include tangibles, reliability, responsiveness ess, assurance and empathy (Zeithaml at al, 1990: 176; Brensinger and Lambert, 1990; Crompton and MacKaey, 1989). Tangibles are the physical evidence of service, reliability involves consistency of performance and dependability, responsiveness concerns the willingness or readiness of employees to provide services assurance corresponds to the knowledge and courtesy of employees and their ability to inspire trust and confidence, and finally, empathy pertains to caring, individualized attention that a firm provides it customers (Lassar at al., 2000. The main aim of study is to assess service quality of insurance companies. The study applying cronbach's alpha and Gap Model i.e.; the actual and the desired service quality. The questionnaire used in the study is comprised of three parts. Part A containes demographic profile of respondents including gender, age group, marital status, education, relevant sector. Part B includes experctations of respondents using a five-point Likert scale ranging from "strongly disagree=1" to "strongly agree". Part C consists perception. The data was analysed with the Statistical Package Program for 38

Social Sciences (SPSS 12 for Windows). The basic analysis and tests utilized in the study include reliability analysis, include frequency and percentage analysis.



1. KNOWLEDGE GAP: This gap arises when there is no direct interaction

with customers, unwillingness to ask customer about expectations lack of customer interaction and market segmentation to understand need of every arises when the difference arises what customer expects of a service and what management perceives the customers to expect.
2. STANDARD GAP :What customer receive from the bank absence of

customer deliver standards of service delivery ,absence of formal quality control goals, vague or undefined service design.
3. DELIVERY GAP: After undergoing with the different bank customer

finally undergo with the bank by considering that he will receive what he expect but due to lack of right employee or their training ,empowerment this gap arises.
4. COMMUNICATION GAP: Unrealistic communication to customer,

sometime the employee over promise to customer then what they are offering or advertising. The prime cause of the gap is the internal communication that may be between heads. 5. SERVICE GAP: This gap arises when the bank promises to give there best service to there customer but fail to offer the customer what they promise to there customer. Bank regularly follow them after providing loan they will pay less attention.



Right strategy for the right products. Superior customer service vs. competitors. Great Brand Image Products have required

Some gaps in range for certain sectors. Customer service staff needs training. Processes and systems, etc Management insufficient. cover

accreditations. High degree of customer




satisfaction. Good place to work Lower response time with efficient and effective service.
Dedicated workforce aiming

constrained by low unemployment levels and competition for staff


making a long-term

career in the field.



Profit margins will be good. Could extend to overseas 41

Legislation could impact. Great risk involved

broadly. New specialist applications. Could seek better customer deals. Fast-track career development opportunities on an industrywide basis. An applied research centre to create opportunities techniques for to developing

Very 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 competitive.

provide added-value services.


Mumbai, Jan 17, 2012: HDFC Bank has been featured by Harvard Business Review on an elite list of 10 companies globally which have grown their net income by 5% every year for the 10-year period ended 2012. A report titled How The Growth Outliers Do It by Rita Gunther. McGrath, a professor at Columbia Business School, says only 10 of the surveyed 2,347 organizations, all with market capitalization of US$1 billion and above, have achieved this consistent performance. What makes this even more special is that HDFC Bank is the only Bank on the list. While there were three companies from the US, 2 each from India and Spain, and one each from Japan, Slovenia and China. Infosys is the other Indian company on the list. Yahoo Japan (Japan), Cognizant (US), and Atmos Energy (US) are some of other prominent names on the list. These companies have been recognized for prosper(ing) over the long term and forbeing more stable and innovative than their competition, as the report puts it.Steady, predictable growth is what every big company strives for and what investors prize above all else Steady, consistent growth is difficult to achieve even at modest rates, never mind by the double digits that corporate leaders are fond of promising, the report says. According to the report, these companies stand out from for the rest due to the following traits: They make small bets early and diversify their portfolios, are active acquirers, have processes that support speed and flexibility, build innovations into everyday operations, and hold on to their talent and keep their senior leadership stable. The report further observed: HDFC's (sic) history of entering new growth markets is illustrative. In 1998 HDFC joined the Cirrus interbank network so that Master card holders worldwide could use its ATMs. In 2001 it became the first bank in India to launch an international debit card, in association with Visa. It introduced various credit card innovations, including a card specifically for farmers... HDFC (sic) moved early and built from initial success in other markets as well, including tele-banking, mobile banking, and foreign exchange services.


About HDFC BANK Promoted in 1995 by Housing Development Finance Corporation (HDFC), India's leading housing finance company, HDFC Bank is one of India's premier banks providing a wide range of financial products and services to its 21 million customers Across hundreds of Indian cities using multiple distribution channels including a panIndia network of branches, ATMs, phone banking, net banking and mobile banking. Within a relatively short 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 16 years, the bank has successfully gained market share in its target customer franchises while maintaining healthy profitability and asset quality.As of September 30, 2011, the Bank had a distribution network with 2,150 branches and 6,520 ATMs in 1,141 locations.For the quarter ended September 30, 2011, the Banks total income was INR 79.294 billion (`7,929.4 crore) as against INR 57.707 billion (`5,770.7 crore) for the quarter ended September 30, 2010. Net revenues (net interest income plus other income) were INR 41.562 billion (`4,156.2 crore) for the quarter ended September 30, 2011, as against INR 34.87 billion (`3,487.0 crore) for the corresponding quarter of the previous year. Net Profit for the quarter ended September 30, 2011, was INR 11.993 billion (`1,199.3 crore), up by 31.5% over the corresponding quarter ended September 30, 2010.



Economic Political ecological/environmental issues current legislation home market future legislation European/international legislation regulatory bodies and processes government policies government term and change trading policies funding, grants and initiatives home market lobbying/pressure groups international pressure groups interest and exchange rates home economy situation home economy trends overseas economies and trends general taxation issues taxation specific to product/services seasonality/weather issues market and trade cycles specific industry factors market routes and distribution trends customer/end-user drivers

Technological Social lifestyle trends demographics consumer attitudes and opinions media views law changes affecting social factors brand, company, technology image consumer buying patterns fashion and role models major events and influences buying access and trends ethnic/religious factors competing technology development research funding associated/dependent technologies replacement technology/solutions maturity of technology manufacturing maturity and capacity information and communications consumer buying mechanisms/technology technology legislation innovation potential technology access, licencing.

advertising and publicity


Data Analysis and Interpretation

After the data collection, it was compiled, classified and tabulated manually and with help of computer. Then the task of drawing inferences was accomplished with the help of percentage and graphic method.

1. For how long you are part of HDFC Bank?

Less than 6 Months Less than 1 Year Less than 2 Years More than 2 Years Total

No. of Respondents
20 37 14 29 100

%age of Respondents
20% 37% 14% 29% 100%

20% 29%



Less than 6 Months Less than 2 Years

Less than 1 Year More than 2 Years

From the above graph it is clear that majority of the respondents are part of HDFC Bank from last one year i.e. 37%; 29% of the respondents are part of HDFC Bank


from last more than 2 years; 20% respondents from 6 months and remaining 14% respondents are part of HDFC Bank for last two years.

2. What are reasons that attract you to be a customer of the bank?

Image Extra Services Services All of above

No. of Respondents
25 25 45 5

%age of Respondents
25% 25% 45% 5%

From the above graph it is clear that majority of the respondents i.e. 45% are become part of HDFC Bank because of its services; 25% because of its image; 25% because of its extra services and rest because of all the three factors.


3. Are you aware of the different services offered by HDFC Bank?

Yes No Total

No. of Respondents
91 9 100

%age of Respondents
91% 9% 100%


Ye s No

From the above graph it is clear that majority of the respondents are aware of products and services offered by HDFC Bank i.e. 91% and 9% respondents are not aware of services offered by HDFC Bank.


4. Do you know about these following services of the bank?

Saving a/c Fixed deposits Current a/c Demat a/c Credit cards Mutual funds Loans

No. of Respondents
100 100 53 5 25 16 95

%age of Respondents
100% 100% 53% 5% 25% 16% 95%

From the above graph it is clear that majority of the respondents are aware of saving a/c & FDs i.e. 100%.53% are aware about current a/c, 5% demat a/c, 25% credit card, 16% mutual fund and 95% are aware of loans.


5. Which of these services are you using?

Saving a/c Fixed deposits Current a/c Demat a/c Credit cards Mutual funds Loans

No. of Respondents
65 58 40 3 0 10 47

%age of Respondents
65% 58% 40% 3% 0% 10% 47%

From the above graph it is clear that majority of the respondents are using saving a/c i.e. 65%.58% are using FDs, 40% current a/c, 3% demat a/c, 0% credit card, 10% mutual fund and 47% are aware of loans.


6. Which of these services are you further interested in?

Saving a/c Fixed deposits Current a/c Demat a/c Credit cards Mutual funds Loans

No. of Respondents
20 24 10 0 0 23 19

%age of Respondents
20% 24% 10% 0% 0% 23% 19%

From the above graph it is clear that majority of the respondents are interesting in FDs i.e. 24%,20% are interesting in saving a/c, 40% current a/c, 23% mutual fund, 19% in loans and no body is interesting in credit cards and demat a/cs.


7. Which service of the bank would you rate the best?

Saving a/c Fixed deposits Current a/c Demat a/c Credit cards Mutual funds Loans

No. of Respondents
33 40 12 0 0 10 5

%age of Respondents
33% 40% 12% 0% 0% 10% 5%

From the above graph it is clear that 33% of the respondent rate saving a/c, the best product. 40% said FDs are best. 12% said current a/c.10% said about mutual funds.5% said about loans and no one rate demat a/c & credit card.


8. Do you know about the Extra services being provided by the bank?
Yes No

No. of Respondents
69 41

%age of Respondents
69% 41%

From the above graph it is clear that 69% of the respondents are known about the innovative services and the rest is unknown about it.


9. Which of the following Extra service of the bank would you like to go in for?
Phone banking ATM Net banking Bill payment Non of these All of these

No. of Respondents
5 60 10 10 5 10

%age of Respondents
5% 60% 10% 10% 5% 10%

From the above graph it is clear that 5% of the respondents would like to go for phone banking, 60% for ATMs, 10% for net banking, 10% for bills payment, 5% dont want any innovative services and 10% want all these services.


10. What is your perception about the service of the bank?

Good Average Poor

No. of Respondents
35 55 10

%age of Respondents
35% 55% 10%

From the above graph it is clear that 35% of the respondents found the service of HDFC Bank good, 55% found it average and 10% found it poor.


11. Are you satisfied with the dealing of the bank officials?
Yes No To some extent

No. of Respondents
30 25 45

%age of Respondents
30% 25% 45%

From the above graph it is clear that 30% of the respondents are satisfied with the dealing of the bank officials, 45% are not fully satisfied and 25% are dissatisfied.


12. Any problem you are facing regarding the bank?

Timeliness Customer relationship Infrastructure Others

No. of Respondents
78 12 10 0

%age of Respondents
78% 12% 10% 0%

From the above graph it is clear that 78% of the respondent facing the problem of timeliness, 12% customer relationship and 10% of infrastructure.


13. How likely are you to recommend Bank services to a friend or colleague?
Very unlikely Somewhat unlikely Neither likely nor unlikely Somewhat likely Very likely

No. of Respondents
8 30 17 35 10

%age of Respondents
8% 30% 17% 35% 10%

From the above graph it is clear that 8% of the respondents are unlikely to recommend the products of HDFC Bank to their friends and colleagues, 30% said somewhat unlikely, 17% said neither likely nor unlikely, 35% said somewhat likely and 10% said very likely.


14. How will you rate the HDFC Bank in maintaining good customer relationship?
Good Average Poor

No. of Respondents
20 57 33

%age of Respondents
20% 57% 33%

From the above graph it is clear that 20% of the respondents said HDFC Bank is good in maintaining customer relationship, 57% said it is average and rest 33% said it is poor in the maintenance.


15. What is your overall satisfaction rating with our bank?

Very dissatisfied Somewhat dissatisfied Neither satisfied nor dissatisfied Very satisfied Somewhat satisfied

No. of Respondents
2 9 21 48 20

%age of Respondents
2% 9% 21% 48% 20%

From the above graph it is clear that 48% of the respondents are very satisfied with the bank, 20% are somewhat satisfied, 21% are neither satisfied nor dissatisfied, 9% are somewhat dissatisfied and 2% are very much dissatisfied with the bank.



Majority of the customers are satisfied with HDFC Bank loan system. Majority of the customers are aware of services and extra services offered by HDFC Bank. But not all the services.
The majority of the customers found services of the bank on an average.

Majority of the respondents are found the bank is average in maintaining the good customer relationship. Majority of the respondent said that they are facing the problem of timeliness and rest are facing problem of customer relationship and infrastructure.
The perception of the majority of the customer regarding the bank loan is good

because majority of the customers are satisfied with the bank loan system and they also recommend other for the bank. The most preferable extra service is ATMs and the less preferable services are bills payment, net banking and phone banking. The majority of customers are more interested in FDs, mutual funds and saving a/cs.
The majority of the customers are satisfied with the dealing of the officials up to

some extent. Main factor that attract customers towards bank is the services of the bank. Services that are most used by the customer are saving a/c, FDs, current a/c and loans.



At the end I would like to conclude that The Indian banking market is growing at an astonishing rate, with Assets expected to reach US$1 trillion by 2010. HDFC bank had a network of 1,142 branches And 3,295 automated teller machines in 528 cities in India.The majority of customers are satisfied. But the bank should target on the rest of the customers who are not satisfied. The customers are aware about the banks services but the Bank should try to create more awareness among people. HDFC Bank should lay more stress on advertisements, both in print as well as in other media for this purpose. Number of formalities should reduce, as customer feels irritated with lots of formalities and it will save the time of customer and Bank also.


The two point remedies for H.D.F.C through which it can recover its lost grounds are: 1. Retailing is the new mantra in marketing these days, H.D.F.C should come up with its exclusive branches in metros and sub-urban areas. In this way it can not only decrease number of intermediaries but also direct contact with the consumer can be established. 2. H.D.F.C should identify that there are two segments in Indian banking market that have vast potential which are youth and rural market. So, H.D.F.C should introduce product specifically to this segment, there is specific consumer services in the market which leverages on the youth and rural aspect of India. The organizational pressure, tight financial control and overall dull ness make the marketers to sulk and squeeze. But, marketers have to be more focused just apply themselves. Then they can rejoice that the spring will not be too far. Apart from the usual 4Ps, its all in the recessionary 3Ps, perception, planning and plundering of the market to find growth out of de-growth. One who finds the opportunity reaps the benefit. Some time, slow down may be a blessing in disguise for some companies. Upon compulsions, some companies may be forced to enter some new categories and either knowingly or unknowingly they may end up having hit the jackpot with some niche brand winners! Consumers become a rare commodity in a slow down. Increase promotions and incentives to lure them. The Indian market has become so intense that every player, including the local brand player has become intelligent enough to come out with some scheme or the other. As a great brand builder and with principles of strategic marketing, companies may have a tendency to give a stoic smile on the lesser mortals. Its a trap and do not ever dare to miss the race. Its time to be an Indian in India.



1-The study was confined to DELHI & NOIDA only and differences in perception and profile may exist for other parts of the country. 2-The sampling was based on convenience that could have given rise to errors. 3-This result may not be appropriate for the whole population (i.e. universe). customers were reluctant to answer certain questions. 4-The result generated out of the study is completely dependent on the nature of the response given by the customers. 5-Short span of time was a limiting factor. 6-Customer satisfaction varies from time to time. It will not remain constant. 7The collected data could be bias as the respondents might have also given fake information. 8-There is possibility of ambiguous doing this Project replies or omission of replies altogether to certain questions, interpretation of omission is difficult. 9- It is difficult to know whether willing respondents are truly representative.


Books Kothari C R Research Methodology Methods & Techniques, New Delhi: New Age International Publisher 2th edition 2004 Kotlar, Keller, Marketing Management, Pearson Publication, 12th edition 2011 Panneerselvam R., Research Methodology, PHI Learning Pvt. Ltd.,9th edition 2011




Name ______________________ Gender _____________________ Annually Income _____________ Age _______________________ Occupation _________________ e-mail _____________________

Address _____________________________________________________


For how long you are part of HDFC Bank? ( ) ( ) Less than 1 Year More than 2 Years ( ) ( )

Less than 6 Months Less than 2 Years

2. What are reasons that attract you to be a customer of the bank? a) b) c) d) 3. Yes 4. a) Savings a/c c) Current a/cs e) Credit card g) Mutual funds a) Savings a/c b) Fixed deposits c) Current a/c d) De-mat a/c 67 its image its service products all of the above ( ) ( ) ( ) ( )

Are you aware of the different services offered by HDFC Bank? ( ) Yes/no yes/no yes/no yes/no No b) Fixed deposits d) Demat a/cs f) Insurances h) Loans ( ) yes/no yes/no yes/no yes/no Do you know about these services of the banking industry?

5. Which of these products are you using? yes/no yes/no yes/no yes/no

e) Credit card a/c f) Insurance g) Mutual finds h) Loans a) Savings a/c b) Fixed deposits c) Current a/c d) De-mat a/c e) Credit card a/c f) Insurance g) Mutual finds h) Loans a) Saving a/c b) Fixed deposits c) Current a/c d) De-mat a/c e) Credit card a/c f) Insurance g) Mutual finds h) Loans

yes/no yes/no yes/no yes/no yes/no yes/no yes/no yes/no yes/no yes/no yes/no yes/no

6. Which of these products are you more interested in?

7. Which services of the banks would you rate the best?

8. Do you know about the extra services being provided by the bank? a) Yes b) No 9. Which of the following extra service of the banks would you Like to go in for? a) Phone banking b) ATM c) Net banking d) Mobile banking e) Bill payment 68 ( ) ( ) ( ) ( ) ( )

f) None of these g) All of these

( ) ( )

10. What is your perception regarding the service of the bank? a) b) c) 11. Good Average Poor ( ) ( ) ( )

Are you satisfied with the dealing of the bank officials? a) Yes b) No c) To some extend a) Timeliness b) Customer relationship c) Infrastructure d) Others a) (1) Very unlikely b) (2) Somewhat unlikely c) (3) Neither likely nor unlikely d) (4) Very likely e) (5) Somewhat likely ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( )

12. Any problem you are facings regarding the bank?

13. How likely are you to recommend Bank services to a friend or colleague?

14. How will you rate the HDFC Bank in maintaining good customer relationship? a) (1) Good b) (2) Average c) (3) Poor ( ( ) ) ( )


15. What is your overall satisfaction rating with our company? a) b) c) d) e) Very dissatisfied Somewhat dissatisfied Nether satisfied nor dissatisfied Very satisfied Somewhat satisfied ( ) ( ) ( ) ( ) ( )