A

PROJECT REPORT
ON
A STUDY OF FINANCIAL ANALYSIS OF HDFC BANK
Submitted in partial fulfilment of

MASTER of BUSINESS ADMINISTRATION

In the

Chandigarh Business School

Punjabi University, Patiala

CHANDIGARH UNIVERSITY, GHARUAN

(2013-2015)
Supervised by :-

Submitted
by :Kirti Awasthi
Sudhir Kumar

(Assistant Professor)

MBA
th

Sem.

602

PREFACE
Someone has rightly said that practical knowledge is far better than classroom teaching.
During the course of this project we actually realized how true it is when we analyzed the
Banking Industry. This project enabled us to know about the consumers needs and
competitors activities in the real world of Banking.
The subject of my study is A STUDY OF FINANCIAL ANALYSIS OF HDFC BANK for
which I have studied about the FINANCIAL ANALYSIS OF HDFC BANK and collected
data of the bank for the last 10 years for its relevance.
The report contains at first, the brief introduction about the company, Industry Profile and
introduction to banking.
I have expressed my experiences in my own simple way. I hope who goes through it will find
it interesting and worth reading. All constructive feedback is cordially invited.

ACKNOWLEDGEMENT
This project report bears the imprint of those who had rendered their wholehearted support
and encouragement without whose help this effort of mine would be in vain. I express my
deep sense of gratitude and sincere thanks to my project guide Mrs Keriti Awasthi for his
direction; suggestion and information provide which were of utmost importance for the
successful completion of the project. I am also thankful to the employees of the HDFC Bank
for assisting me in the timely completion of the project.
At last, I also thank to my family and my friends and also BM Manjinder Singh those
helped me in my training period and in the completion of project.

DECLARATION
I Sudhir Kumar hereby that the research project report title A STUDY OF FINANCIAL
ANALYSIS OF HDFC BANK is my own original research work and this report has not been
submitted to any university/institute for the award of any professional degree or diploma.

(SUDHIR KUMAR)

CERTIFICATE
4

(WHOM SO EVER IT MAY CONCERN)

This is to certify that the seminar report entitled Customer Satisfaction in

Birla Sunlife Insurance

carried at School of Management Studies, Punjabi

University, Patiala is a bonafide work done by Inderdeep Singh, Roll no. 507 and
submitted the same in the partial fulfillment for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION .

I found him to be good in task and activities assigned to him. I wish him success
in all future endeavors.

(SIGNATURE)

Ms.
Sania singla
(FACULTY GUIDE)

INDEX

Ch.No.
1.

Particulars
A. Introduction to the industry

Page No.
6-11

21-22

2.

Objectives of Study

3.

Review of Literature

4.

Research methodology

23-28

5.

Limitations of the study

29-30

6.

Data analysis & Interpretataion

7.

Findings , Conclusion and Recommendiation

32-46

Bibliography

47-50

Questionnaries

31

51
52-55

CHAPTER-1
INTRODUCTION

EXECUTIVE SUMMARY
The report contains the organizational study done at HDFC Bank. The report title is financial
analysis of 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
7

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
questionnaire, which is targeted to the different persons in Machhiwara. 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 t

he 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.

The Salient Features of the Bank are:

Leading Co-operative Bank of Northern India.

Competitive interest rates on deposits and loans.

All deposits are insured under DICGC Scheme.

Draft facility throughout India.

Micro-level advancing to individual borrowers in agriculture, small-scale

industries and service sector.

Macro-level advancing to Societies and Self-Help Groups for social

development.
8

Financing infrastructure development of the State through HPSEB, HRTC,

HPFC, HPIDB, HPSCSC etc.

Disbursing pensions to HPSEB, HRTC, Defence personnel and freedom

fighters.

All borrowers extended Insurance facilities.

Fully computerised Bank head office, zonal offices and four main branches at
Dharamshala, Una, Hamirpur and Kullu.

INTRODUCTION TO BANKING
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
nationalized 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, and
provides a facility to deposit and withdraw money when needed and charge for it.

BANKING CHANNELS:
Banks offer many different channels to access their banking and other services:

ATM is a machine that dispenses cash and sometimes takes deposits without the need
for a human bank teller. Some ATMs provide additional services.

A branch is a retail location.

Call centre.

Mobile banking is a method of using one's mobile phone to conduct banking

transactions.

Online banking is a term used for performing transactions, payments etc. over the
Internet.

10

CORPORATE TIE-UP:

National Insurance Company Limited

The Bank has signed a MOU with "National Insurance Company Limited" for Corporate
Agency Arrangement to provide non-life Insurance Services to Customers and General public
along with the Banking Services at a single window through various branches of the Bank.

Kotak Mahindra, Old Mutual Life Insurance Limited

We are pleased to inform you that Bank has entered into a Referral Agreement with Kotak
Mahindra, Old Mutual Life Insurance Limited. Under the agreement, the Bank will refer its
customers and prospective customers through its branches to the insurance company for
distribution and providing its life insurance products viz. Sukhi Jeewan and Eternal Life.

Hero
We are pleased to inform you that Bank has entered into an MOU with Hero Honda Motors
for financing Motor Cycles.

Tata Motors
We are pleased to inform you that Bank has entered into an MOU with Tata Motors for
financing Tata Vehicles.
.
AXIS,and ICICI Bank
The Bank has also corporate tie-up with AXIS, and ICICI Bank for remittance and collection
purposes.

11

Schedule of Banks (1.1)

Table 1.1

Scheduled banks in
India

Scheduled commercial
banks

Public
sector

Nationalize
d banks

Private
sector

SBI & its

associate
s
Source:-www.hdfc.com

Foreign
banks

Old
private
bank

Scheduled cooperative banks

Regional
rural
bank

New
private
bank

Scheduled
urban cooperative
banks

Scheduled
state cooperative
banks

At present there are (27) Public Sector Banks, about (30) Private Sector Banks, (40) Foreign
Banks and (196) RRBs, Urban Co-Operative Banks (52), State Co-Operative bank
(16), Nationalized Banks (19), State Bank of India Associates (8), there are about 68,000
branches that exist across country.
RBI as a Regulatory Body:
The central bank of the country is the Reserve Bank of India (RBI). It was established in April
1935 with a share capital of Rs. 5crores on the basis of the recommendations of the Hilton
Young Commission. The share capital was divided into shares of Rs. 100 each fully paid
12

which was entirely owned by private shareholders in the beginning. The Government held
shares of nominal value of Rs. 220,000. Reserve Bank of India was nationalized in the year
1949. The Bank was constituted for the need of following:

To regulate the issue of banknotes.

To maintain reserves with a view to securing monetary stability.

To operate the credit and currency system of the country to its advantage.

Functions

of

Reserve

Bank

of

India:-

The Reserve Bank of India Act of 1934 entrust all the important functions of a central bank
the Reserve Bank of India.
Bank of Issue:Under Section 22 of the Reserve Bank of India Act, the Bank has the sole right to issue bank
notes of all denominations. The distribution of one rupee notes and coins and small coins all
over the country is undertaken by the Reserve Bank as agent of the Government. The Reserve
Bank has a separate Issue Department which is entrusted with the issue of currency notes.
Banker to Government:The second important function of the Reserve Bank of India is to act as Government banker,
agent and adviser. The Reserve Bank is agent of Central Government and of all State
Governments in India.
Bankers' Bank and Lender of the Last Resort:The Reserve Bank of India acts as the bankers' bank. According to the provisions of the
Banking Companies Act of 1949, every scheduled bank was required to maintain with the
Reserve Bank a cash balance equivalent to 5% of its demand liabilities and 2 per cent of its
time liabilities in India. By an amendment of 1962, the distinction between demand and time
liabilities was abolished and banks have been asked to keep cash reserves equal to 3 per cent
of their aggregate deposit liabilities. The minimum cash requirements can be changed by the
Reserve Bank of India.

13

The Scheduled banks can borrow from the Reserve Bank of India on the basis of eligible
securities or get financial accommodation in times of need or stringency by rediscounting bills
of exchange. Since commercial banks can always expect the Reserve Bank of India to come to
their help in times of banking crisis the Reserve Bank becomes not only the banker's bank but
also

the

lender

of

the

last

resort.

Controller of Credit:The Reserve Bank of India is the controller of credit i.e. it has the power to influence the
volume of credit created by banks in India. It can do so through changing the Bank rate or
through open market operations. According to the Banking Regulation Act of 1949, the
Reserve Bank of India can ask any particular bank or the whole banking system not to lend to
particular groups or persons on the basis of certain types of securities. Since 1956, selective
controls of credit are increasingly being used by the Reserve Bank. The Reserve Bank of India
is armed with many more powers to control the Indian money market. Every bank has to get a
license from the Reserve Bank of India to do banking business within India, the license can be
cancelled by the Reserve Bank of certain stipulated conditions are not fulfilled. Every bank
will have to get the permission of the Reserve Bank before it can open a new branch. Each
scheduled bank must send a weekly return to the Reserve Bank showing, in detail, its assets
and liabilities. This power of the Bank to call for information is also intended to give it
effective control of the credit system. The Reserve Bank has also the power to inspect the
accounts of any commercial bank.
As supreme banking authority in the country, the Reserve Bank of India, therefore, has the
following powers:

(a) It holds the cash reserves of all the scheduled banks.

(b) It controls the credit operations of banks through quantitative and qualitative controls.

14

(c) It controls the banking system through the system of licensing, inspection and calling for
information.

(d) It acts as the lender of the last resort by providing rediscount facilities to scheduled banks.

Supervisory functions:In addition to its traditional central banking functions, the Reserve bank has certain nonmonetary functions of the nature of supervision of banks and promotion of sound banking in
India. The Reserve Bank Act, 1934, and the Banking Regulation Act, 1949 have given the
RBI wide powers of supervision and control over commercial and co-operative banks, relating
to licensing and establishments, branch expansion, liquidity of their assets, management and
methods of working, amalgamation, reconstruction, and liquidation. The RBI is authorized to
carry out periodical inspections of the banks and to call for returns and necessary information
from them.
Promotional functions:With economic growth assuming a new urgency since Independence, the range of the Reserve
Bank's functions has steadily widened. The Bank now performs variety of developmental and
promotional functions, which, at one time, were regarded as outside the normal scope of
central banking. The Reserve Bank was asked to promote banking habit, extend banking
facilities to rural and semi-urban areas, and establish and promote new specialized
Financing agencies.

Classification of RBIs functions:The monetary functions also known as the central banking functions of the RBI are related to
control and regulation of money and credit, i.e., issue of currency, control of bank credit,

15

control of foreign exchange operations, banker to the Government and to the money market.
Monetary functions of the RBI are significant as they control and regulate the volume of
money and credit in the country.

16

INTRODUCTION TO THE STUDY

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.

Why is it important?
17

There are a number of reasons why customer satisfaction is important in Banking Sector:
M e e t i n g t h e n e e d s o f t h e c u s t o m e r i s t h e u n d e r l yi n g r a t i o n a l e f o r t h e
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.

HDFC BANK
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 the RBI's liberalization of
the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name
of 'HDFC Bank Limited', w i t h i t s r e g i s t e r e d o ff i c e i n M u m b a i , I n p d i a .
H D F C B a n k c o m m e n c e d o p e r a t i o n s a s a Scheduled Commercial Bank in January
1995.
HDFC is Indias premier housing finance company and enjoys an impeccable track record in
India as well as in international markets. Since its inception in 1977, the Corporation has
maintained a Consistent and healthy growth in its operations to remain the market leader in
mortgages. 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

18

facilities. With its experience in the financial markets, a strong market reputation, large
shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a
bank in the Indian environment.
HDFC Bank began operations in 1995 with a simple mission to be a World Class Indian
Bank. It realized that only
a s i n g l e m i n d e d f o c u s o n p r o d u c t q u a l i t y a n d s e r v i c e excellence would
help us get there. Today, the Bank is proud to say that it is well on its way towards that goal.

TECHNOLOGY USED IN HDFC BANK

In the era of globalization each and every sector faced the stiff competition from their rivals.
And world also converted into the flat from the globe. After the policy of liberalization and
RBI initiatives to take the step for the private sector banks, more and more changes are taking
the part into it. And there are create competition between the private sector banks and public
sector bank. Private sector banks are today used the latest technology for the different
transaction of day to day banking life. As we know that Information Technology plays the
vital role in the each and every industry and gives the optimum return from the limited
resources. Banks are service industries and today IT gives the innovative Technology
application to Banking industries. HDFC BANK is the leader in the industries and today IT
and HDFC BANK together combined they reached the sky. New technology changed the
mind of the customers and changed the queue concept from the history banking transaction.
Today there are different channels are available for the banking transactions. We can see that
the how technology gives the best results in the below diagram. There are drastically changes
seen in the use of Internet banking, in a year 2001 (2%) and in the year 2008 (25%). This type
of technology gives the freedom to retail customers.
HDFC BANK is the very consistent player in the new private sector banks. New private
sector banks to withstand the competition from public sector banks came up with innovative
products and superior service.There are so many products in hdfc bank.

19

 Auto Loan

Saving a/c

Mutual Fund

Loan Against Security

Current a/c

Bonds

Loan Against Property

Fixed deposit

Knowledge Centre

Personal loan

Demat a/c

Insurance

Credit card

Safe Deposit General and Health

Insurance

Lockers

2-wheeler loan

Equity and Derivatives

Commercial vehicles finance

Mudra Gold Bar

Home loans
Retail business banking
Tractor loan

Construction

Equipment

Finance Working

Capital

Finance
Health Care Finance
Education Loan
Gold Loan Deposit Product
HDFC BANK PRODUCT AND CUSTOMER SEGMENTS
PERSONAL BANKING
Cards

Payment Services

Access To Bank

20

 Credit Card

NetSafe

NetBanking

Debit Card

Merchant

OneView

Prepaid Card

Prepaid Refill

InstaAlert MobileBanking

Billpay

ATM

Visa Billpay

Phone Banking

InstaPay

Email Statements

Forex Service

DirectPay

Branch Network

Product & Services

VisaMoney Transfer

Trade Services

Forex

service

Locater
RBI Guidelines

Branch

eMonies

Electronic

Funds Transfer
Online Payment of Direct
Tax

Corporate

Small and Medium Enterprises

Financial Institutions and Trusts

Funded Services

Funded Services

BANKS

21

 Non Funded Services

Non Funded Services

Clearing Sub Membership

Value Added Services

Specialized Services

RTGS submembership

Internet Banking

Value added services

Fund Transfer

Internet Banking

ATM Tie-ups
Corporate Salary a/c
Tax Collection
Financial Institutions
Mutual Funds
Stock Brokers
Insurance Companies
Commodities
Business
Trusts

WHOLESALE BANKING
BUSINESS STRETEGY
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
22

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 scalable 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.

INSIDE HDFC BA
FIVE

S,

PART

OF

KAIZEN

WORK PLACE TRANSFORMATION

23

Focus on effective work place organization

Believe in
Small changes lead to large improvement
Every successful organization has their own strategy to win the race in the competitive
market. They use some technique and methodology for smooth running of business. HDFC
BANK also acquired the Japanese technique for smooth running of work and effective work
place organization.

Five S Part of Kaizen is the technique which is used in the bank for easy and systematic
work place and eliminating unnecessary things from the work place.
BENEFIT OF FIVE S

It can be started immediately.

Every one has to participate.
Five S is an entirely people driven initiatives.
Brings in concept of ownership.
All wastage are made visible.

FIVE S Means:

Table 2.2

S-1

SORT

SEIRI

S-2

SYSTEMATIZE

SEITON
24

S-3

SPIC-N-SPAN

SEIRO

S-4

STANDARDIZE

SEIKETSU

S-5

SUSTAIN

SHITSUKE

(1) SORT :

It focuses on eliminating unnecessary items from the work place.

It is excellent way to free up valuable floor space.
It segregates items as per require and wanted.

Frequently
Required

Less Frequently
Required
Remove
everything from
workplace

Wanted but not

Required

Junk

(2) SYSTEMATIZE :
Systematize is focus on efficient and effective Storage method. That means it identify,
organize and arrange retrieval. It largely focuses on good labeling and identification
practices. Objective: - A place for everything and everything in its place.
(3) SPIC- n - SPAN :
Spic-n-Span focuses on regular clearing and self inspection. It brings in the sense of
ownership.
25

(4) STANDERDIZE :
It focuses on simplification and standardization. It involves standard rules and policies. It
establish checklist to facilitate autonomous maintenance of workplace. It assigns
responsibility for doing various jobs and decides on Five S frequency.
(5) SUSTAIN:
It focuses on defining a new status and standard of organized work place. Sustain means
regular training to maintain standards developed under S-4. It brings in self- discipline
and commitment towards workplace organization.

Table 2.3

LABELLING ON FILE

FILE NUMBER

SUBJECT

FROM DATE

TO DATE

OWNER

26

BOX LABEL
For Example
1/3/A/6
1 Work Station (1)
3 Drawer (3)
A - Shelf (A)
6 File Number (6)

COLOUR CODING OF FILES

Table 2.4
DEPARTMENT
Welcome Desk
Personal Banker
Teller
27

Relationship Manager
Branch Manager
Demat
Others

In the HDFC BANK each department has their different color coding apply on the different
file. Due to this everyone aware about their particular color file which is coding on it and they
save their valuable time. It is a part of Kaizen and also included in the system of the Five S.
Logic behind it that, the color coding are always differentiate the things from the similar one.

HUMAN RESOURCES
The Banks staffing needs continued to increase during the year particularly in the retail
banking businesses in line with the business growth. Total number of employees increased
from 14878 as of March31, 2006 to 21477 as of March 31, 2007. The Bank continues to focus
on training its employees on a continuing basis, both on the job and through training programs
conducted by internal and external faculty. The Bank has consistently believed that broader
employee ownership of its shares has a positive impact on its performance and employee
motivation. The Banks employee stock option scheme so far covers around 9000 employees.

RUPEE EARNED - RUPEE SPENT

28

It is more important for every organization to know about from where and where to spent
money. And balanced between these two things rupee earned and rupee spent are required for
smooth running of business and financial soundness. This type of watch can control and
eliminate the unnecessary spending of business. In this diagram it includes both things from
where bank earned Rupee and where to spent.
HDFC BANK earned from the Interest from Advances 51.14 % , Interest from Investment
27.12 %,bank earned commission exchange and brokerage of 15.25 %. These are the major
earning sources of the bank. Bank also earned from the Forex and Derivatives and some other
Interest Income. Bank spent 39.75 % on Interest Expense, 30.27 % on Operating Expense and
14.58 % on Provision. Bank also spent Dividend and Tax on dividend, Loss on Investment,
Tax. As we discuss above that balancing is must between these two for every organization

RECENT DEVELOPMENT

29

The Reserve Bank of India has approved the scheme of

amalgamation of Centurion Bank of Punjab Ltd. With
HDFC Bank Ltd. with effect from May 23, 2008.
All the branches of Centurion Bank of Punjab will function
as branches of HDFC Bank with effect from May 23,
2008. With RBIs approval, all requisite statutory and
regulatory approvals for the merger have been obtained.

30

The combined entity would have a nationwide network of 1167 branches; a strong deposit
base of around Rs.1, 22,000 crores and net advances of around Rs.89, 000 crores. The balance
sheet size of the combined entity would be over Rs.1, 63,000 crores.

Merger with Centurion Bank of Punjab Limited

On March 27, 2008, the shareholders of the Bank accorded their consent to a scheme of
amalgamation of Centurion Bank of Punjab Limited with HDFC Bank Limited. The
shareholders of the Bank approved the issuance of one equity share of Rs.10/- each of HDFC
Bank Limited for every 29 equity shares of Re. 1/- each held in Centurion Bank of Punjab
Limited. This is subject to receipt of Approvals from the Reserve Bank of India, stock
exchanges and Other requisite statutory and regulatory authorities. The shareholders Also
accorded their consent to issue equity shares and/or warrants convertible into equity shares at
the rate of Rs.1,530.13 each to HDFC Limited and/or other promoter group companies on
preferential basis, subject to final regulatory approvals in this regard. The
Shareholders of the Bank have also approved an increase in the authorized capital from
Rs.450 crores to Rs.550 crores.
Promoted in 1995 by Housing Development Finance Corporation (HDFC), India's
leading housing finance company, wide range of financial products and service

31

COMPANY PROFILE
COMPLETE NAME OF THE COMPANY
The Housing Development Finance Corporation Limited (HDFC Bank Ltd.)
BUSINESSOBJECTIVE
The primary objective of HDFC is to enhance residential housing stock in the country through
the provision of housing finance in a systematic and professional manner, and to promote
home ownership. Another objective is to increase the flow of resources to the housing sector
by integrating the housing finance sector with the overall domestic financial markets.

ORGANISATIONAL GOALS
HDFC's main goals are to

(a) Develop close relationships with individual households

(b) Maintain its position as the premier housing finance institution in the country
(c) Transform ideas into viable and creative solutions

32

SWOT ANALYSIS OF HDFC BANK

Strengths: 1.

Right strategy for the right products.

2.

Superior customer service vs. competitors.

3.

Great Brand Image.

4.

Products have required accreditation.

5.

High degree of customer satisfaction.

6.

Good place to work

7.

Lower response time with efficient and effective service.

8.

Dedicated workforce aiming at making a long-term career in the field.

Weakness:
1.

Some gaps in range for certain sectors.

2.

Customer service staff needs training.

3.

Processes and systems, etc

4.

Management cover insufficient.

5.

Sectoral growth is constrained by low unemployment levels and competition for staff

Opportunities:
1.

Profit margins will be good.

2.

Could extend to overseas broadly.

3.

New specialist applications.

4.

Could seek better customer deals.

5.

Fast-track career development opportunities on an industry-wide basis.

6.

An applied research center to create opportunities for developing techniques to provide

added-value services.

Threats: 1.

Legislation could impact.

2.

Great risk involveVery high competition prevailing in the industry.

33

CHAPTER 2

REVIEW OF
LITRATURE

34

REVIEW OF LITRATURE
Ohlson (2000) Financial ratio analysis can help investors in making investment
decision and predicting firms future performance. It can also give early warning
about

the

slowdown

of

firms

financial

condition

Johnson and Soenen (2006) Research in finance shows that firms characteristics
(such as growth, company size, efficiency) can predict the future stock price. analyzed
478 firms in USA during 1982-1998 and concluded that big sized and profitable firms
with high level advertising expenditure have better performance
three

in terms of those
measurements.

Hobarth (2009) studied the correlation between financial indicators and firms
performance of listed firms in USA for 19 years period by using 17 financial indicators
and three variables to measure firms performance, namely market performance
(measured by changes in stock market value), cash flow performance (dividend per
share), and profitability (ROI). The result shows that firms.

35

CHAPTER-3
OBJECTIVES &
RESEARCH
METHODOLOGY

36

OBJECTIVES OF THE STUDY

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.

37

RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
DEFINATION
"Research comprises, defining an redefining, formulating hypothesis or suggested solutions,
collecting, organizing, evaluating data, making deductions and reaching conclusions and at
last carefully testing the conclusions to determine whether they fit the formulating hypothesis"
"CUFFORD WOODY"
RESEARCH PROBLEM
Here, the research is undertaken to know the level of customer satisfaction. Since the
customer is the King so his needs must be given the first priority. That's why customer
satisfaction has been chosen as a research problem.
RESEARCH DESIGNS
Personal interview technique was used to conduct the survey. The usual approach was to
identify the potential respondent and his cooperation in answering the list of predetermined
questions. Regarding the customer survey, I personally sit with our dealing assistant in the
bank to look after the whole working procedure of the deposit accounts / collected relevant
information regarding the queries and problems of customers of bank.
Personal interview technique also provided information such as customer knowledge,
intentions about the various deposits and demographic characteristics such as attitude, opinion
and lifestyle of the people.
SOURCES OF DATA
PRIMARY DATA
SECONDARY DATA

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Primary Data All the collection of primary data was done in the personal presence to
ensure the completeness of the process.
QUESTIONNIARE METHOD:
The communication method ,in effect ,is the method of designing questionnaire with a view to collect
the requisite information. The questionnaires can be classified into main four types.
1. structured non distinguished
2. structured distinguished
3. Non structured-Non distinguished
4. Non Structured distinguished
A structured questionnaire is a formal list of questions framed so as to get the facts. The in reviewer
asks the questions strictly in accordance with a pre arranged order. This classification is based on
whether the object or purpose of the survey is revealed to the respondent .Most Marketing Research
studies use this type of questionnaire, in the case of a structured
-distinguished Questionniare, the researcher does not disclose the object of the survey. He may not be
objective in giving the necessary information and, as such its purpose may be defeat. He is therefore
very particular not to divulge the purpose of the investigation

A non-structured questionnaire is one in which the questions are not structured and the order in which
they are to be asked from the respondent is left entirely to the researcher. He asks
The questions in the manner in which he deems fit in a particular situation .In fact; he may only have
certain main points on which he may develop the question at the time of actual interview. As it will be
seen, a non- structured questionnaire id devoid of rigidity and allows considerable freedom to the
researcher in choosing the order as well as the specific contents of questions .Normally, unstructured
questionnaires are used in explanatory research when some respondents are contacted. It is only
subsequently, on the basis of answers received; that a well structured questionnaire is hand only after
the explanatory research. Questionniare of this type can be split into two types. when the purpose of the
enquiry

is disclosed to the respondent, the questionnaire are known as non-structured and non39

distinguished while in other cases, the questionnaire are classified as non-structured and disguised
questionnaires.
Types of Questions
An important aspect in the designing of a questionnaire is to decide which type of questions is to be
used. Questions can be classified in various ways. One way of classification is as follows.

Open-ended question.

Dichotomous Question.

Multiple-Choice Questions.

Secondary Data The secondary source of information was obtained from the annual reports
of the banks, their website, manual of instructions on deposits accounts and brouchers as well.
Sources of secondary data
Secondary data can be obtained internally, i.e within the firm. Or externally. i.e from one or more
outside agencies.
Internal source of secondary data
Internal source can be classified under four broad categories- accounting records. Sales force
reports, miscellaneous report and internal experts.
External source of secondary Data:
The external secondary data do not originate in the firm and are obtained from outside sources.
Secondary data can be collected from the originating sources or from secondary sources.Generally the
originating source of secondary data should be preferred on account of several reasons. First the
originating source is more likely to explain the object and procedure of data collection.
Government Publications
Non-Government Publication
Syndicated Services

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Consumer Research services

TOOL OF ANALYSIS
Pie charts, Graphs and Percentage tools were used to analyze the collected data
SAMPLING
Sampling Unit- The population in question was the customers of the bank having their
account in this bank.
Sampling SizeThe survey was conducted in the town of Machhiwara with 100 customers as respondent.
SAMPLING PROCEDURE
Convenience sampling was done for the questionnaire to be filled within the bank as it was
affected by time availability of customers. It was difficult to use a statistical procedure for
sampling.
RESEARCH VARIABLES
1. Rate of interest
2. Fees and other charges
3. Behavior of staff
4. Amount of deposit
5. Existing relationship
6. Procedural aspect.

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FINDINGS OF THE STUDY

Majority of the customer are satisfied with the bank.

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 are average.
Majority
of the
respondents
are found
the
bank is

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 is good because

average

majority of the customers are satisfied with the bank and they also recommend the

products of 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.

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CHAPTER-4
DATA
INTERPRETATI
ON AND
ANALYSIS
43

Figure 3.1

Q.No.1:- service received from the customer service representative?

Source :- Primary data

INTERPRETATION

From the data it can be concluded that the HDFC customers are more satisfied to the service
provided by the bank

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Figure 3.2
Q.No.2:- Service received from Supervisors & Management?

Source:- Primary data

INTERPRETATION
It is clear from the above chart that HDFC customers are satisfied but some percent is also
dissatisfied with the management because they said the staff should a friendly relation with
any type of customer.

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Figure 3.3
Q.No.3:- Do you agree that minimum account limit is not high and easy to maintain?

Source: Primary Data

INTERPRETATION
From the above data it can be concluded that most of the customers are satisfied with the
account limit but some percent of customers are dissatisfied with the account limit that means
they said its difficult to maintain as AQB charges are very high.

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Figure 3.4

Q.No.4:- How satisfied were you with the following aspects of the branch facility?

Source: Primary Data

INTERPRETATION
From the above data given in a chart we can easily say that majority of the customers of the
HDFC bank are satisfied with the facility provided by the branh.they should maintain the
same pace of service constantly to attract more and more customers.

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figure 3.5

Q. No.5:- Do you receive statements monthly?

Source: Primary Data

INTERPRETATION
Most of the Customers of HDFC bank said that they are receiving monthly statement from the
bank and the rest of the customers said that they dont need of the monthly statement.

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Figure 3.6
Q.No:-6 In terms of your expectation regarding mailed statements?

Source: Primary Data

INTERPRETATION
From the above data it could be easily said that majority of the HDFC customers seeks the
benefit of mail service.

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figure 3.7
Q.No.7:- Are you using other facilities provided by the bank, like internet banking, Phone
banking etc.

Source: Primary Data

INTERPRETATION
From the above chart we can predict easily that HDFC customers are using other perks
provided by the bank

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figure 3.8
Q.No 8:- Have you applied for credit card?

Source: Primary Data

INTERPRETATION
From the above chart we can clearly say that majority of the HDFC Bank customers seeks the
benift of credit card and many more are likely to apply for that it is because of no surcharges
and other benefits as compare with the other banks credit card.

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Figure 3.9

Q.No 9:- Service you received from the lending officer(s), how satisfied were you with
following?

Source: Primary Data

INTERPRETATION
Majority of the HDFC Bank customers are satisfied with the relation of the lending officer.
According of the satisfied customers they said that lending officer is always keen to listen the
grievance and complaint of the customers and try to solve it within a specified time.

Figure 3.10
52

Q.No.10 Do you feel the procedure to open an account with the bank was difficult?

Source: Primary Data

INTERPRETATION
From the above data it is clearly seen that majority of the HDFC Bank customers are
dissatisfied with the procedure of opening of an account it is because it took a lot of time to
open an account and the customers has to wait more than a specified time

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CHAPTER-5
FINDINGS,
SUGGESTIONS
AND CONCLUSION

54

SUGGESTIONS AND RECOMMENDATIONS

More stress should give on the advertisement and promotional activities.

The Bank should make some efforts to improving good relationship with customer.

The bank makes its procedures less time consuming.

Contract Sales Executive (CSE) should be trained to explain the product features and
its value added services to make customers product selection convenient.

The bank should make effort to aware the customers about their all the extra services.
Contract Sales Executive (CSE) should recommend right product to the right customer

so as to ensure a high degree of satisfaction among the customer.

The bank needs to make people aware about their products and the basic benefits they
can derive out of it. And also the differential features of its savings account as
compared to other banks.70% of the people did not even know about the concept,

benefits and features of its saving accounts.

The bank should also target small business unit for whom maintenance of the AQB is

not a problem as this segment is not much penetrated.

Though the bank offers free doorstep banking once a day this fact is also not known to
many customers or they still do not trust this service whatever the reason the bank can
popularize this service to gain an edge over nationalized banks and Co-operative

Banks.
The bank should enhance their services according to the needs of the customer.

LIMITATIONS OF THE STUDY

It is said, Nothing is perfect and if the quite is true, I am sure that there would
be few shortcoming in this project also. Sincere efforts have been made to eliminate
55

discrepancies as far as possible but few would have reminded due to limitations of the study.
These are:

The research was carried out in a short period.

Limited sample size.
The information given by the respondent might be biased some of them

might not be interested to given correct information.

Some of the respondents of the survey were unwilling to share information.

CONCLUSION
A t t h e e n d I w o u l d l i k e t o c o n c l u d e t h a t T h e I n d i a n b a n k i n g ma r k e t i s
g r o w i n g a t a n astonishing rate, with Assets expected to reach US$1 trillion by
56

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 advertisement, 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.

BIBLIOGRAPHY

Financial Accounting By Jain &Narang

Research Methodology by C.R.Kothari

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Annual Reports of Punjab State Cooperative Bank

NEWSPAPPERS & MAGAZINES:

The Economic Times

The Hindustan Times

Times Of India

Indian Today

www.google.com

www.pbcooperatives.gov.in

www.hdfcbank.com

www.hdfcbank/product/finance

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