Beruflich Dokumente
Kultur Dokumente
ON
SERVICE QUALITY OF
HDFC BANK
DECLARATION
PRAGUN GUPTA
BBA 3RD SEM
SECTION A
EVENING
PREFACE
This project report attempts to bring under one cover the entire hard
work and dedication put in by me in the completion of the project work
on Service Quality of HDFC bank.
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.
PRAGUN GUPTA
BBA 3RD SEM
SECTION A
EVENING
ACKNOWLEDGEMENT
I would like to express my special thanks of gratitude to my
teacher Ms. Anjali as well as our Director General Prof. Col.
(Retd.) Mahander Singh who gave me the golden opportunity to
do this wonderful project on the topic VARIOUS SCHEMES
AND SERVICES OF HDFC BANK, which also helped me in
doing a lot of Research and I came to know about so many new
things.
am
really
thankful
to
them.
INDEX
1. PREFACE
2. ACKNOWLEDGEMENT
3. INTRODUCTION TO BANKING
4. BANKING SYSTEM IN INDIA
5. PROFILE OF HDFC BANK
6. OBJECTIVES OF STUDY
7. RESEARCH METHODOLOGY
8. SWOT ANALYSIS
9. SUGGESTIONS
10. LIMITATIONS
11. QUESTIONNAIRE
12. BIBLIOGRAPHY
INTRODUCTION OF BANKING
Thus,
A Bank:
Accepts deposits of money from public
Pays interest on money deposited with it.
Lends or invests money
Repays the amount on demand
Allow the money deposited to be withdrawn by cheque or draft
A HISTERICAL PERSPECTIVE
We can identify distinct phases in the history of Indian banking:
1. Early phases 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 own origin as early as Vedic period. It is
believed that the transactions from many lending to banking must
have occurred even before Manu, the great Hindu furriest, who has
developed 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 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
The Bengal Bank. The bank of Hindustan is reported to have been
continued till 1906. While the other two failed in the mean time. 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
1804 and the Bank of Bombay in 1843. 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 27 th
january1921.
With the passing of the State Bank of India Act in 1955, the
undertaking of 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.
Indian management was 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 major banks of the country
were nationalized and on 15th April 1980, 6 more commercial
private sector banks were taken over by the government.
BUSINESS FOCUS
HDFC Banks mission is to be a World-class Indian Bank. The objective
is to build sound customer franchises across distinct businesses so as to
be the preferred provider of banking services for target retail and
wholesale customer segments, and to achieve healthy growth in
profitability, consistent with the banks risk appetite. The bank is
committed to maintain the highest level of ethical standards,
professional integrity, corporate governance and regulatory compliance.
HDFC Banks business philosophy is based on four core values
Operational excellence, Customer Focus, Product Leadership and
People.
Operational excellence
Customer focus
Product leadership
People
BUSINESS STRATEGY
Increasing market share in Indias expanding banking
Delivering high quality customer service
Maintaining current high standards for asset quality through
disciplined credit risk management
Develop innovative products and services that attract targeted
customers and address inefficiencies in the Indian financial sector.
DISTRIBUTION NETWORK
PROMOTER
HDFC is India's premier housing finance company and enjoys
an impeccable track record in I n d i a a s w e l l a s i n
international markets. Since its inception in 1977, the
C o r p o r a t i o n h a s 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 facilities. With its
experience in the f i n a n c i a l m a r k e t s , a s t r o n g m a r k e t
reputation,
l a r ge
shareholder
base
and
unique
c o n s u m e r franchise, HDFC was ideally positioned to promote a bank
in the Indian environment.
MANAGEMENT
Mr. Jagdish Capoor took over as the bank's Chairman in July 2001. Prior
to this, Mr. Capoor was a Deputy Governor of the Reserve Bank of
India. The Managing Director, Mr. Aditya Puri, has b e e n a
professional banker for over 25 years and before joining
HDFC Bank in 1994 was heading Citibank's operations
in Malaysia. The Bank's Board of Directors is composed
o f eminent individuals with a wealth of experience in public
policy, administration, industry and c o m m e r c i a l b a n k i n g .
Senior executives representing HDFC are also on the Bo
a r d . S e n i o r banking professionals with substantial experience
in India and abroad head various businesses a n d f u n c t i o n s
a n d r e p o r t t o t h e M a n a g i n g D i r e c t o r. G i v e n t h e
p r o f e s s i o n a l e x p e r t i s e o f t h e management team and the overall
focus on recruiting and retaining the best talent in the industry, the bank
believes that its people are a significant competitive strength.
TECHNOLOGY
HDFC Bank operates in a highly automated environment in terms of
information technology and communication systems. All the bank's
branches
have
online
connectivity,
which
enables
the b a n k t o o f f e r s p e e d y f u n d s t r a n s f e r f a c i l i t i e s t o i t s c u
stomers. Multibranch access is also provided to retail cu
stomers through the branch network and
Au t o m a t e d
Tel l e r M a c h i n e s (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. The
Bank's business is supported by scalable and robust systems
which ensure that our clients always get the finest services we
offer. The 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 businesses. In each of its businesses, the
Bank has succeeded in leveraging its market position, expertise
and technology to create a competitive advantage and build market
share.
QUALITY POLICY
SECURITY: The bank long term financial security to their policy. The
bank does this by offering life insurance and pension products.
TRUST: The bank appreciates the trust placed by their policy holders in
the bank. Hence, it will aim to manage their investments very carefully
and live up to this trust.
INNOGVATION: Recognizing the different needs of our customers, the
bank offers a range of innovative products to meet these needs.
INTEGRITY
CUSTOMER CENTRIC
PEOPLE CARE ONE FOR ALL AND ALL FOE ONE
TEAM WORK
JOY AND SIMPLICITY
BUSINESS
The HDFC Bank Preferred program for high net worth individuals, the
HDFC Bank Plus and the Investment Advisory Services programs have
been designed keeping in mind needs of customers who seek distinct
financial solutions, information and advice on various investment
avenues. The bank also has a wide array of retail loan products including
Auto Loans, Loans against marketable securities, Personal Loans and
Loans for Two-Wheelers.
It is also a leading provider of Depository Participant (DP) services for
retail customers, providing customers the facility to hold their
investments in electronic form. HDFC was the first bank in India to
launch an International Debit Card in association with VISA (VISA
Electron) and issues the MasterCard Maestro debit card as well. The
bank launched its credit card business in late 2001. By March 2010, the
bank had a total card base (debit and credit cards) of over 14 million.
The bank is also one of the leading players in merchant acquiring
business with over 90,000 Point-to-sale (POS) terminals for debit/credit
cards acceptance at merchant establishments. The bank is well
positioned as a leader in various net based B2C opportunities including a
wide range of internet banking services for Fixed Deposits, Loans< Bill
payments, etc.
TREASURY
Within this business, the bank has three main products areas- Foreign
Exchange and Derivatives, Local Currency Money Market and Debit
Securities, and Equities. With the liberalization of the financial markets
in Indi, corporate need more sophisticated risk management information,
advice and product structures. These and fine pricing on various treasury
products are provided through the banks Treasury team. To comply with
statutory reserve requirements, the bank is required to hold 25% of its
RESEARCH OBJECTIVE
AND
RESEARCH
METHODOLOGY
RESEARCH METHODOLOGY
Collection of data
Analysis of data
Interpretation of data
Preparation of report
RESEARCH DESIGN
A research design is like arrangement of conditions for collections
& analysis of data in a manual that aims to combine relevance to the
research purpose with economy in procedures.
A research design is purely & simply the framework of plans for a
study that guides the collections & analysis of data the research design is
the conceptual structure within which the research is conducted. It
constitutes the blue print for the collection, measurement & analysis of
the data.
Sources
Friends
Marketing
Advertisement
Exhibitions
Others
Percentage of respondents
35
40
10
10
5
As shown by the table above, people who come to know about the
HDFC Bank through friends are 35%, through Marketing are 40%,
through Advertisement are 10%, through Exhibitions are 10% and
through Others are 5%.
PERCENTAGE
SOURCES OF AWARENESS
40
40
35
35
30
25
20
15
10
10
10
5
0
Friends
Marketing
ADS
SOURCES
Exhibitions
Other
Helping Group
Marketing Executives
HDFC Branch
Others
Percentage of Respondents
40
55
5
PERCENTAGE
60%
50%
40%
40%
30%
20%
10%
0%
5%
HDFC Branch
MarketingGROUP
Exec.
HELPING
Others
Q.3.
Factors
Percentage of the Respondents
Advertisement
20
Special Offer
30
Operational Staff
15
Convincing Power
20
of executives
Credibility
of
15
Bank
After conducting the survey advertisement plays 20%, Special
Offer plays 30%, Operational Staff plays 15%, Convincing Power of
Executives plays 20% and Credibility of Bank plays 15% role while
opening an account in HDFC Bank.
Thus study shows that special offer plays the most important
role while opening an account according to the respondents.
% of Respondents
ADV; 20%
Convicing
ADV Sp. Offer
PowerOperational
of executives;
Staff 20%
Convicing Power of executives Credi. Of Bank
Sp. Offer; 30%
Operational Staff ; 15%
Q.4.
Product Name
Saving A/c
Current A/c
Fixed Deposit
Others
Percentage of Respondents
44
22
28
6
This table shows that the people who are using Saving A/c are
44%, Current A/c are 22%, Fixed Deposit are 28% and Others are 6%
Thus the study shows that Saving A/c is the most preferred
product of HDFC Bank by respondents.
This can be shown by this Graph.
% of Respondents
Other; 6%
FD; 28%
Saving
Current
FD
Saving; 44%
Other
Current; 22%
Q.5.
FD Scheme
Reinvestment
Super Saver
Sweep in A/c
This Table shows that people are using reinvestment are 30%,
Super Saver are 45% and Sweep in A/c are 25%.
Thus the study shows that Super Saver is the most popular FD
Scheme by the respondents.
PERCENTAGE
% of Respondents
50
45
40
30
30
25
20
10
0
Reinsvestment
Super Saver
FD SCHEMES
Sweepin
Q.6.
Yes
65
70
60
50
40
30
20
PERCENTAGE
% of Respondents
65
35
10
0
Yes
No
Q.7.
you
DBC Facilities
ATM
Phone Banking
Net Banking
Mobile Banking
PERCENTAGE
45
40
35
30
25
20
15
10
5
0
PERCENTAGE OF RESPONDENTS
45
35
20
10
1 1 1
ATM
2 2 2
Phone
3 3 3
Net Banking
4 4 4
Mobile Banking
DBC FACILITIES
Q.8. What are the causes for not using any of the Direct Banking
Channels?
Causes responsible for not using DBC
Causes
Percentage of the Respondents
Unwareness
32
Lack of Knowledge
42
Feel more secure while
21
banking personally
Unsatisfied
5
% of Respondents
Unsatisfied
Unawareness
Feel more secure banking personal ; 21%
Unawareness; 32%
This Graph shows that the main cause for not using DBC by
respondents is lack of knowledge.
Q.9. How will you rate performance of direct banking channels you are
using?
Rate performance of the DBC.
Performance of DBC
Best
Good
Fair
Poor
Very Poor
% of Respondents
Fair; 20%
Good
Fair
Be st; 40%
Poor
Very Poor
Good; 30%
The Graph shows that 40% people says DBC Best , 30% says
DBC is good, 20% says DBC Fair, 7% says DBC is poor and 3%
says DBC is very poor in its performance.
Q.10.
Rate Performance
Best
Good
Fair
Poor
Very Poor
% of Respondents
Poor; 3% Very Poor; 2%
Best
Fair; 20%
Good
Fair
Poor
Best; 40%
Very Poor
Good; 35%
This Graph shows that 40% people says HDFC is Best in its
performance, 35% people says HDFC is Good, 20% says it is Fair, 3%
says it is poor and 2% people says it is Very Poor in its performance.
Q.11. Did you face any problems while maintaining your account at
bank?
Percentage of the respondents facing the problems while
maintaining were account.
Yes
45
Percentage of Respondents
No
55
PERCENTAGE
% of Respondents
60
55
45
50
40
30
20
10
0
Yes
No
This Graph shows that 45% people says they are facing the
problem while maintaining the Account and 55% people says they are
not facing any of the problem while maintaining the Account in HDFC
Bank.
Q.12.
Facilities
Better
Plan
Selusen
Agents
Others
Percentage
20
30
30
15
5
% of Respondents
30
30
PERCENTAGE
30
25
20
20
15
15
10
5
0
Better
Plan
Selusen
FACILITIES
Agents
Others
15
Yes
No
85
Q.14.
What extra service would you like to avail form the bank?
% of Respondents
10
20
Phone Banking
Bills Pay
Other
40
30
SWOT ANALYSIS
STRENGHTS:
It has an extensive distribution network comprising of 319
branches in 166 cities & one international office in Dubai this
provides a competitive edge over the competitions.
The Bank has a strong retail depository base & has more than
million customers.
WEAKNESS:
Account opening and delivery of cheque book take comparatively
more time.
Lack of availability of different credit products like CC Limit, Bill
discounting facilities.
OPPORTUNITY:
Branch expansion
Door step services
Greater liberalization in foreign ownership via FDI in Indian Pvt.
Sector Banks.
CC/ OF Facilities.
Infrastructure improvements & better systems for trading &
settlement in the govt. securities & foreign exchange markets.
THREATS:
The bank has started facing competition from players like SBI,
PNB Bank in the finance market itself. This reduce the profit
margins in the future.
Some Pvt. Banks have 7 days banking.
SUGGESTIONS
The bank should provide for regular and frequent calls to their
profitable customers to retain clientele & to make them feel more
comfortable and attached to the bank (CRM)
HDFC Bank should also bring a new feature of CC (Cash credit)
limit.
CONCLUSION
Saving account is the most important product Next comes FD, then
current and lastly Demat.
Super saver scheme is the most popular scheme in FD.
Around 65% of respondents are able to maintain their AQB of
Rs.5000 in savings account.
80% of respondents are satisfied with their Demat A/c.
ATM facility is used the most among all direct banking channels
45% respondents agreed to this.
Lack of knowledge about DBC is the most important reason for
not using DBC. Also unawareness about them is the reason DBC
performance is rated as satisfactory.
HDFC Bank's performance is rated as satisfactory.
Executives have satisfactory knowledge about products.
55% of respondents faced no problem while maintaining their
account.
HDFC Bank is preferred the most because of higher returns and
better plans and services.
85% of respondents agree that private sector banks are better than
public sector banks.
Respondents require new facilities as bills pay, phone banking,
online trading of shares.
QUESTIONNAIRE
NAME
AGE
SEX
OCCUPATION
PHONE NO.
1.
2.
Marketing
Ads
HDFC Bank
No
5.
One
Two
Three
Special Offers
Other
4.
Other
3.
Exhibitions
Operational Staff
Credibility of bank
Current Account
FD
Others
7.
8.
9.
Sweep in account
No
Net Banking
Phone Banking
Mobile
Banking
10.
What are the causes for not using any of the Direct Banking
channels?
11.
Unawareness
Unsatisfied
Others
How will you rate performance of direct banking channels you are
using?
Best
Good
Poor
Very Poor
Fair
12.
13.
14.
Good
Fair
Poor
Very Poor
Good
Fair
Poor
Very Poor
bank?
If 'yes' please mention what problems you faced.
Yes
No
15.
16.
Better returns
Attractive Plans
Agent Known
Others
Do you think private sector banks are better than public sector
banks?
Yes
17.
No
What extra service would you like to avail from the bank?
______________________________________________________
______________________________________________________
___.
18.
Suggestion: ______________________________________________________
______________________________________________________
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PLACE:_________________
DATE:__________________
BIBLIOGRAPHY
Books:
Research Methodology
Marketing Management
Magazine:
Business Today
Business World