Dissertation Report on

New to Bank – Acquisition

Submitted to
Amity University Jharkhand

In partial fulfillment of the requirements for the award of the

degree of

MASTER OF BUSINESS ADMINISTRATION

By

SHUBHAM KUMAR SINGH

Enrolment No. A35101918041

Under the guidance of

Prof. Kumar Satyam

AMITY BUSINESS SCHOOL

AMITY UNIVERSITY JHARKHAND
RANCHI
MAY 2019
 DECLARATION

I, SHUBHAM KUMAR SINGH, student of Master of Business Administration hereby

declare that the Dissertation titled “New to Bank - Acquisition” which is submitted by me to
Department of Management, Amity Business School, Amity University Jharkhand, in partial
fulfilment of requirement for the award of degree of Master of Business Administration, has
not been previously formed the basis for the award of any degree, diploma or other similar
title or recognition.

Amity University Jharkhand, Ranchi

Date:

Sign. of the Student

Name of Student: Shubham Kumar Singh

Enrolment Number: A35101918041

1
 CERTIFICATE

On the basis of Dissertation submitted by SHUBHAM KUMAR SINGH, student of Master

of Business Administration, I hereby certify that the Dissertation “New to Bank -
Acquisition” which is submitted to Department of Management, Amity Business School,
Amity University Jharkhand in partial fulfilment of requirement for the award of the degree
of Master of Business Administration is an original contribution with existing knowledge and
faithful record of work carried out by him/her under my guidance and supervision.

To the best of my knowledge this work has not been submitted in part or full for any Degree
or Diploma to this University or elsewhere.

Amity University, Ranchi

Date:

Signature of Guide (Internal) Signature of Guide (External)

KUMAR SATYAM Name: HARISH KUMAR TAPARIA
Assistant Professor Designation: BRANCH MANAGER
Amity Business School Ranchi
Amity University Jharkhand, Ranchi

2
 LIST OF CONTENTS

PARTICULARS PAGE NO.

1. Introduction
1.1 Overview of Industry 4-5
1.2 Company profile 5-11
1.3 Importance of the study 11-12
1.4 Literature Review 12-13
13-15
1.5 Statement of the problem
15
1.6 Objective & Scope of the study 15
1.7 Limitations of the study
2. Research Methodology
2.1 Research Design 16
2.2 Sample Design 16-17
2.2.1 Sample Size 17
2.2.2 Sampling Method 17
2.3 Data Collection Method 17

3. Data Analysis & Interpretation 18-23

4. Findings, Conclusion & Recommendations

4.1Findings 23
4.2Conclusion 23-24
4.3Recommendations 24-25

5. Appendix & Bibliography

5.1 Sample Questionnaire 25-26
5.2 Bibliography 27

3
 1. INTRODUCTION

1.1 OVERVIEW OF THE INDUSTRY

As per the Reserve Bank of India (RBI), India’s banking sector is sufficiently capitalised and
well-regulated. The financial and economic conditions in the country are far superior to any
other country in the world. Credit, market and liquidity risk studies suggest that Indian banks
are generally resilient and have withstood the global downturn well.
Indian banking industry has recently witnessed the roll out of innovative banking models like
payments and small finance banks. RBI’s new measures may go a long way in helping the
restructuring of the domestic banking industry.
The digital payments system in India has evolved the most among 25 countries with India’s
Immediate Payment Service (IMPS) being the only system at level 5 in the Faster Payments
Innovation Index (FPII).

Market Size
The Indian banking system consists of 27 public sector banks, 21 private sector banks, 49
foreign banks, 56 regional rural banks, 1,562 urban cooperative banks and 94,384 rural co-
operative banks, in addition to cooperative credit institutions (FY17 data).  In FY07-18, total
lending increased at a CAGR of 10.94 per cent and total deposits increased at a CAGR of
11.66 per cent. India’s retail credit market is the fourth largest in the emerging countries. It
increased to US$ 281 billion on December 2017 from US$ 181 billion on December 2014.

Investments/developments
Key investments and developments in India’s banking industry include:

 As of September 2018, the Government of India launched India Post Payments Bank
(IPPB) and has opened branches across 650 districts to achieve the objective of
financial inclusion.

4
  The total value of mergers and acquisition during 2017 in NBFC diversified financial
services and banking was US$ 2,564 billion, US$ 103 million and US$ 79 million
respectively.
 The biggest merger deal of FY17 was in the microfinance segment of IndusInd Bank
Limited and Bharat Financial Inclusion Limited of US$ 2.4 billion.
 In May 2018, total equity funding's of microfinance sector grew at the rate of 39.88 to
Rs 96.31 billion (Rs 4.49 billion) in 2017-18 from Rs 68.85 billion (US$ 1.03 billion).

1.2COMPANY PROFILE: HDFC BANK

History of HDFC Bank:

The housing development Finance Corporation Limited (HDFC) was amongst the first to
receive as in principal 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.
The bank was incorporated in August 1994 in the name of HDFC Bank Limited, with its
registered office in Mumbai, India. The Bank commenced operation as a scheduled
Commercial Bank in January 1995.

Mission, Vision and Objectives

The mission of HDFC is to become “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 and compliance. The objective is to build sound
customer franchises across distinct business 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, consistence with the Bank’s risk appetite. The bank is committed to maintain the
highest level of ethical standards, professional integrity, corporate governance and regulatory
compliance. HDFC Bank’s business philosophy is based on five core values: Operational
Excellence, Customer Focus, Product Leadership, People and Sustainability.

HDFC Bank’s business objectives emphasize the following:

 Increase their market share in India’s expanding banking and financial services industry
by following a disciplined growth strategy and delivering high quality customer service.
 Leverage their technology platform and open, scale able systems to deliver more products
to more customers and to control operating costs.

5
 Maintain their current high standards for asset quality through disciplined credit risk
management.
 Develop innovative products and services that attract our targeted customers and address
inefficiencies in the Indian financial sector.
 Continue to develop product and services that reduce our cost of funds.
 Focus on high earning growth with low volatility.

Promoters
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 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 facilities. With its
experience in the financial markets, strong market reputation, large shareholder base and
unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian
environment.

Distribution Network

HDFC Bank is headquartered in Mumbai. It has 88,253 permanent employees as of 31 March

2018 and has a presence in Bahrain, Hong Kong and Dubai. HDFC Bank is India’s largest
private sector lender by assets. It is the largest bank in India by market capitalization as of
February 2016.As of October 9, 2018, the bank's distributions network was at 4,805 branches
and 12,260 ATMs across 2,657 cities and towns. The bank also installed 4.30 Lacs POS
terminals and issued 235.7 Lacs debit cards and 85.4 Lacs credit card in FY 2017.All
branches are linked on an online real-time basis. Customers across India are also serviced
through multiple delivery channels such as Phone Banking, Net Banking, Mobile Banking
and SMS based banking.

Management

The Managing Director, Mr. Aditya Puri, has been 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 of eminent individuals with a wealth of

6
experience in public policy, administration, industry and commercial banking. Senior
executives representing HDFC are also on the Board.

Senior banking professionals with substantial experience in India and abroad head various
businesses and functions and report to the Managing Director. Given the professional
expertise of the 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 bank to offer speedy funds transfer facilities 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. In terms of core
banking software, the Corporate Banking business is supported by Flexcube, while the Retail
Banking business by Finware, both from i-flex Solutions Ltd. The systems are open,
scaleable and web-enabled.
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.

Business Profile

HDFC Bank caters to a wide range of banking services covering commercial and investment
banking on the wholesale side and transactional / branch banking on the retail side. The bank
has three key business segments: 

Wholesale Banking Services

The Bank's target market ranges from large, blue-chip manufacturing companies in the Indian
corporate to small & mid-sized corporates and agri-based businesses. For these customers,
the Bank provides a wide range of commercial and transactional banking services, including

7
working capital finance, trade services, transactional services, cash management, etc. The
bank is also a leading provider of structured solutions, which combine cash management
services with vendor and distributor finance for facilitating superior supply chain
management for its corporate customers.

Retail Banking Services

The objective of the Retail Bank is to provide its target market customers a full range of
financial products and banking services, giving the customer a one-stop window for all
his/her banking requirements. The products are backed by world-class service and delivered
to customers through the growing branch network, as well as through alternative delivery
channels like ATMs, Phone Banking, Net Banking and Mobile Banking.

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 Bank was the first bank in India to launch an International Debit Card in association
with VISA (VISA Electron) and issues the MasterCard Maestro debit card as well. The Bank
launched its credit card business in late 2001. By March 2015, the bank had a total card base
(debit and credit cards) of over 25 million. The Bank is also one of the leading players in the
“merchant acquiring” business with over 235,000 Point-of-sale (POS) terminals for debit /
credit cards acceptance at merchant establishments. The Bank is well positioned as a leader in
various net based B2C opportunities including a wide range of internet banking services for
Fixed Deposits, Loans, Bill Payments, etc.

Treasury
Within this business, the bank has three main product areas - Foreign Exchange and
Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the

8
liberalisation of the financial markets in India, corporates need more sophisticated risk
management information, advice and product structures. These and fine pricing on various
treasury products are provided through the bank's Treasury team. To comply with statutory
reserve requirements, the bank is required to hold 25% of its deposits in government
securities. The Treasury business is responsible for managing the returns and market risk on
this investment portfolio.

Products of HDFC Bank

HDFC bank provides very large range of financial product to the customer for their better
financial transaction. The product of HDFC bank are

Savings Account
Everyone needs a savings account to store away the surplus cash. The bank offers savings
accounts under various types starting from basic accounts to premium accounts with variety
of features. The interest rates on the Savings Account are 3.5% p.a. which is calculated daily
on the end of day balance

Salary Accounts
The bank offers multiple types of salary accounts to suit the needs of all types of corporate.
The salary accounts offer various features to the accountholders like free insurance coverage.

Current Accounts
Current accounts are required by businessmen and professionals who have regular
transactions through the bank. The account deals mainly in liquid deposits and allows
unlimited number of transactions every day like funds being withdrawn or cheques being
written against the account without worrying about the balance in the account. Professionals,
traders, SME businessmen, agricultural businesses can avail various benefits like fund
transfers between all HDFC Accounts, free local collections through cheque and fund
transfers as well as easy inter-city banking.

Deposits
Individuals who wish to save money for a longer term with a view to earn a higher rate of
interest seek to invest money in term deposit accounts which guarantee higher interest rates.
HDFC Bank also offers various types of deposit accounts promising high interest rates for
customers seeking deposit accounts.

9
Loans
HDFC bank is a leader in home loan sector and also offers various other kinds of loans at
attractive interest rates for various needs of the individuals.

Credit Cards
The bank has a wide range of credit cards for customers which promise special offers and
privileges on dining, movies, lounge access of airports, etc. The cards also offer Reward
Points on every spending made by the cardholder which can be redeemed for attractive
offers. The range of Credit Cards offered by the bank are as follows:

Debit Cards
HDFC Bank offers Debit cards with every Savings Account to customers which are safer
than carrying cash because they require a PIN every time they are used, they provide great
discounts and cash back on fuel, shopping, dining, entertainment, etc. and are used across
almost all outlets for payment. The range of debit cards issued by the bank are:

Demat Account
HDFC Bank issues Demat Account for investors like traders, long term investors as well as
beginners for a flexible and customized solution. The demat account offered by the bank is
safe and dependable for buying and storing a customer’s equity investments, mutual funds,
IPOs, ETF Exchange Traded Funds like Gold and Index, bonds and NCDs.

Investments
HDFC bank deals in various investment avenues to complete the financial portfolio of the
customer like Mutual Funds, Life Insurance products and General Insurance Products. The
investment products are further subdivided into the following categories:

Insurance
HDFC Bank offers both life and non-life products to its customers. The life insurance
products are issued in association with HDFC Life Insurance Company Limited and the non-
life insurance products are issued in association with HDFC Ergo. The following are the
heads of insurance and their respective plans:

10
Life and Health Insurance
The list of below mentioned plans range from term insurance, endowment insurance and
money-back plans to those of Unit Linked Insurance Plans (ULIPs) for a complete insurance
products basket for customers to choose from. Health Insurance falls under the purview of
general insurance and four types of health insurance plans are offered by the bank.

1.3 IMPORTANCE OF THE STUDY

Importance and Significance of the study The Indian banking industry is passing through a
phase of customers market. The customers have more choices in choosing their bank .The
competition has been established within the bank operating in India. With stiff competition and
advance technology, the service provided by the bank have become more easy and convenient
This Study will gave a base to the further research in this field.

ACQUISITION - A Definition of Customer Acquisition

Customer acquisition refers to gaining new consumers. Acquiring new customers involves
persuading consumers to purchase a company’s products and/or services. Companies and
organizations consider the cost of customer acquisition as an important measure in evaluating
how much value customers bring to their businesses. Customer acquisition management
refers to the set of methodologies and systems for managing customer prospects and inquiries
that are generated by a variety of marketing techniques. Some successful customer
acquisition strategies include customer referrals, customer loyalty programs, and the like.
One way to think about customer acquisition management is to consider it the link between
advertising and customer relationship management, as it is the critical connection that
facilitates the acquisition of targeted customers in an effective way.

Benefits of Customer Acquisition

Using appropriate customer acquisition strategies helps companies to grow, and targeted
customer acquisition programs help companies acquire the right customers in a cost effective
way. New companies or those with less established products especially need to place a
greater focus on customer acquisition. As companies mature, they can shift their focus to

11
customer retention. It’s important to keep in mind that customer acquisition costs often are
higher than customer retention costs and therefore require a thorough analysis of the
associated benefits. The acquisition benefits also need to be fully quantified in order for
companies to accurately gauge the relative value of their customer acquisition process. For
established companies to grow most effectively, they should find ways to attract, satisfy, and
retain customers.

1.4 LITERATURE REVIEW

Banking is a prime mover in the economic development of a nation and research is so

essential to improve its working results. The management without any right policy is like
"building a house on sand". It means an effective management always needs a thorough and
continuous search into the nature of the reasons for, and the consequences of organization. In
line with this, some related earlier studies conducted by individuals and institutions are
reviewed to have an in-depth insight into the problem and exploring the reformation of
banking policy. The main theme and essence of few relevant studies are presented below.

Godse (1987) in his essay, "Looking Afresh At Banking Productivity" observes that
productivity aspect is only at the conceptualization stage in the banking industry. He suggests
improvement in productivity through manpower aspects, system and procedures, costing of
operations, capital expenditures etc., looking into the future he observed that continued thrust
on branch expansion in rural and semi-urban areas at unbanked centres and backward
districts could result in a change in the concept of profit as a corporate objective and as the
indicator of productivity. All branches may not reach breakeven and a reduction in
operational deficit can be a measure of productivity. Godse suggested indicators of
productivity that may be used at various levels of management in bank. He further made
certain suggestions regarding improvement of productivity He expressed the view that for
preparing banking industry to face the environmental changes including changes in work
technology in a systematic manner, an integrated multi-disciplinary and total planning effort
is necessary.

Suresh Krishna Murthy (2002) stated, "Technology' progress has created a segment
between the banks, that e techno saved and those that are not. Almost all these, the go old,
distinguish with new private sector and old private sector banks continue to thrive. Here is an

12
analysis of the old private sector banks that have seen a decade of evaluation and now it and
at a crucial stage of their evolutions".

Pramod Guptha (2003) said, "Both public and private banks are spending large amounts of
money on technology to provide innovative products and services to their customers with
more convenience and satisfaction. Technology is reducing the cost of transaction and
helping to increase customer base and enable wider reach".

1.5 STATEMENT OF THE PROBLEM

 To know the current trends of banking sector in India.

 To know the basic functions of HDFC bank.
 To measure the status of customer’s perception based on satisfaction level, product
awareness, preferences and usage rate of banking service of HDFC bank in the mind
of customer.
 To find out how to retain customers.

The Customer Acquisition Challenge: How Banks Can Leverage Analytics to Compete

The market for financial products is more crowded now than ever, making it challenging to
capture new customers and meet performance goals. Many financial institutions (FIs) are
offering increasingly generous, eye-catching rewards promotions, as evidenced by the $22.6
billion issuers spent on credit card rewards in 2016.

As banks invest heavily and compete fiercely to acquire customers and create enduring
relationships, they also must carefully develop strategies to acquire the right customers – that
is, build the relationships that will add the most value in the long-term. However, this is often
easier said than done, as FIs face several key challenges in customer acquisition.
First, it can be difficult to accurately project account value. In order to invest strategically,
banks must understand the incremental impact of their promotions on the overall bottom line,
which can be challenging to measure. For example, will investing in competitive signup
promotions and rewards offers pay off? As value varies widely by account, the answer to this
question may not be readily apparent.

13
Further, the true value of an account doesn’t become clear until months or years after the
initial signup, making it difficult to immediately comprehend a new customer’s true value.  A
lack of clear insight can be paralyzing, and lead organizations to make only reactive decisions
or small changes at the margins.

So how can banks forecast account value to better inform targeting for campaigns – reaching
not just the customers that will respond, but those that will respond profitably? A robust
analytics program is instrumental for FIs to unlock the potential of their data and identify
actionable insights to inform their acquisition strategies.
For most banks, the sheer volume of campaigns – spanning multiple products, channels and
offers each month – and the complexity of analysing them effectively makes it impossible to
rigorously measure the individual impact of each. Even fewer banks can aggregate analysis
across campaigns to uncover insights into overall customer journeys and engagement
strategies.

Optimizing campaign investments is particularly challenging due to the dozens or even

hundreds of potential offer and product combinations. Refining customer acquisition strategy
entails fine-tuning each of the different outreach levers involved. To execute campaigns
effectively, banks must make a series of decisions, including:

 Which customers and prospects to target

 What the right offer and structure combination is for each tier, card type, and
customer segment
 What actions should be taken given changes in volume goals, budgets, and spend
targets

These levers can also be applied to different offers and promotions, including:

 Introductory and regular APR rates

 Signup bonus terms, including minimum spending requirements, spending
requirement terms, and airline miles vs. cash rewards
 Annual and balance transfer fees
Developing or enhancing analytic capabilities allows banks to hone in on the right levers to
pull with the right customers. Leveraging insights from past campaign performance through

14
test vs. control analysis with well-matched sample groups enables banks to predict future
behaviour, while uncovering financial risks before they can negatively impact the bottom
line.

In addition to each of these considerations for refining and optimizing individual campaigns,
FIs must also consider which mix of campaigns and offers will yield the greatest ROI. For
example, should a credit card issuer offer 25,000, 40,000, or 50,000 points for new customers
next month? What should the spend minimum be? Should that vary by card type, customer
segment and channel? To check all of these boxes, organizations need a scalable analytics
solution to incorporate findings and data from different acquisition campaigns.
With the stakes higher than ever for banks to optimize their acquisition strategy and reach the
right customers with the right offers, investing in analytics is critical. Leveraging data-driven
insights to inform outreach will empower banks to make better decisions, drive higher
acquisition ROI and react to ever-evolving market dynamics ahead of the competition.

1.6 OBJECTIVES AND SCOPE OF THE STUDY

 To know the customer awareness regarding the bank’s products.

 To know the type of account use by customers.
 To know the preference of customer regarding the extra services.
 To know the problems of customer regarding bank.

1.7 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 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.

15
  Some of the respondents of the survey were unwilling to share information.

2. RESEARCH METHODOLOGY

Research is a careful investigation or inquiry especially through search for new facts in
branch of knowledge: market research specifies the information. Required to address these
issues: designs the method for collecting information: manage and implements the data
collection process analyses the results and communicates the finding and their implications.

Research problem is the one which requires a researcher to find out the best solution for the
given problem that is to find out the course of action, the action the objectives can be
obtained optimally in the context of a given environment.

2.1 RESEARCH DESIGN

A framework or blueprint for conducting the research project. It specifies the details of the
procedures necessary for obtaining the information needed to structure and/or solve research
problems. A good research design lays the foundation for conducting the project. A good
research design will ensure that the research project is conducted effectively and efficiently.
Typically, a research design involves the following components, or tasks:

 Define the information needed.

 Design the research.
 Specify the measurement and scaling procedures.
 Construct and present a questionnaire or an appropriate form for data collection.
 Specify the sampling process and sampling size.
 Develop a plan of data analysis.

2.2 SAMPLE DESIGN

16
A sample design is the framework, or road map, that serves as the basis for the selection of a
survey sample and affects many other important aspects of a survey as well. In a broad
context, survey researchers are interested in obtaining some type of information through a
survey for some population, or universe, of interest. One must define a sampling fr ame that
represents the population of interest, from which a sample is to be drawn.

2.2.1 SAMPLE SIZE

Sample size measures the number of individual samples measured or observations used in a
survey or experiment.

To carry out this study 100 respondents were questioned.

2.2.2 SAMPLING METHOD

To carry out this research convenience sampling method was used.

Convenience sampling (also known as availability sampling) is a specific type of

nonprobability sampling method that relies on data collection from population members who
are conveniently available to participate in study.

2.3 DATA COLLECTION

The objectives of the project are such that both primary and secondary data is required to
achieve them. So both primary and secondary data was used for the project. The mode of
collecting primary data is questionnaire mode and sources of secondary data are various
magazines, books, newspapers, & websites etc.

1. Primary data: The primary data was collected to measure the customer satisfaction and
their perception regarding HDFC bank. The primary data was collected by means of
questionnaire and analysis was done on the basis of response received from the customers.
The questionnaire has been designed in such a manner that the consumer’s satisfaction level
can be measured and consumer can enter his responses easily.

2. Secondary data: The purpose of collecting secondary data was to achieve the objective of
studying the recent trends and developments taking place in banking. The sources of
secondary data are:-

 Websites
 Magazines

17
  Articles

3. DATA ANALYSIS

Q1. In which bank do you have your account ?

UBI
Syndicate Bank
SBI
PNB
Kotak Mahindra
Indian Bank
IDBI
ICICI
HDFC
Central Bank of India
Canara Bank
BOI
Bank of Baroda
Axis Bank
0 5 10 15 20 25 30 35 40

Interpretation:-

Thus from the above graph we can interpret that there is a high competition between SBI and
HDFC Bank as they have equal number of customers.

Q2. What is the reason for choosing this bank?

Zero balance account

Rate of interest

Incentive scheme

Good service
18

0 10 20 30 40 50 60 70 80 90 100
Interpretation:-

From the above graph it is analysed that most of the customers choose their respective bank
because of the good services offered.

Q3. Do you have account in HDFC bank ?

33%
No
Yes

67%

Interpretation:-

From the above chart, it can be interpreted that out of 100%, 67% of the population have their
account in HDFC bank.

19
 Total

(blank)

More than 6 years

Less than 1 yr

4-6 years

1-3 years

0 5 10 15 20 25

Interpretation:-

From the above graph, it can be interpreted that most of the customers of HDFC bank has
been using the banking services for less than 1 year. This shows that HDFC is attracting more
customers recently through its good services.

20
 Q5. What type of account do you have in that bank ?
100
90
80
70
60
50
40
30
20
10
0
BSBD Current account Salary account Saving account

Interpretation:-

From the above graph it can be analysed that out of 100 respondents, 90 respondents have a
saving account in their respective banks.

Q6. Are you aware of the services offered by HDFC

bank ?

No
Yes
50% 50%

Interpretation:-

From the above chart it can be analysed that 50% of the population are aware of the services
provided by the HDFC bank.

21
 Q.7 From where you get to know about the product offered
by any bank ?

Social media

Office

Friends and relatives

Bank

Advertisement

0 5 10 15 20 25 30 35 40 45 50

Interpretation:-

From the above graph, it can be interpreted that most of the customers are made aware of the
products offered by the bank through their friends and relatives.

Interpretation:-

From the above graph it can be interpreted that out of 100% population 36.9 % of the
customers use the bank products on a moderate basis.

22
 Q9. What services do you expect from your bank ?

23% 21%

10 sec loan service

Instant update
Personalized service
Wide network

25%
30%

Interpretation:-

From the above chart it can be interpreted that 30% of the customers look for personalised
services from the bank whereas 25% look for instant update.

Q10. Are you satisfi ed With your bank services ?

12%

No
Yes

88%

Interpretation:-

From the above Pie-chart it can be interpreted that the 88% of customers are satisfied with
their bank services.

4. Findings, Conclusion & Recommendations

23
4.1 Findings

Following are the key findings of the study:-

 From the survey it was found that HDFC & SBI two most popular banks in which
respondent have their account.
 Good service was one of the most important reason, on the basis of which
respondents chose their respective banks.
 From the study it was found that the customers of HDFC bank have grown in recent
past as many of them have opened their account in less than 1 year.
 Among the respondent most commonly they are having saving bank account.

Some of the general findings observed are:-

 There is a cut throat competition between SBI and HDFC Bank
 Sometimes it is very difficult to convince customers to purchase bank
products/services.
 People are very conscious about their investments and don’t want to take risk by
investing in new schemes.
 Generally Senior Citizens are more interested in Fixed Deposits as compared to
Youths or Middle Aged People.
 In general, HDFC Bank has tie-up with big companies for Salary Account of their
employees.

4.2 Conclusion
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$4 trillion by 2030. HDFC bank had a
network of 5103 branches and 13,160 automated teller machines in 2,748 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 bank’s 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.

24
Efforts should be made to reduce paperwork and complexities so that banking operations
become more user friendly and easily accessible.
Modern banking customers are different than the traditional customers of several years
ago. Customer acquisition in the banking sector is more difficult now, more than ever. Here,
there is an increased urgency for banks to provide a customer experience that meets customer
expectations.
Thanks to the spread of social networks and the internet, customers have a wider selection of
products and services to choose from, and they are more demanding when it comes to
performance and the quality of the customer experience they are receiving.
Another phenomenon that pushes banking institutions to focus their efforts on improving the
customer experience is the growth of so-called Financial Technologies. The birth and success
of such companies that provide user-friendly and innovative banking services have changed
the landscape of the sector, introducing an unusual and very aggressive competitor.
In some ways, this has created a new standard. Many consumers have tried this type of
service and have been particularly satisfied with the customer experience provided, which is
faster and more intuitive, and for this reason, they are more likely to recommend this new
type of operator over c the traditional banking institutions.

4.3 RECOMMENDATION

 Bank should focus on different products which could target all the age groups and
income level customers.
 More emphasis should be given on promotion and advertisement of the product.
 More awareness about the products should spread to attract customers.
 Proper customer interaction team should be hired that will help bank to put more
emphasis on knowing customers point of view toward different services and the
performance of employees.
 The bank should make its procedures less time consuming.
 Many of the respondent suggested that the average minimum balance (AMB) should
be reduced.

5. Appendix & Bibliography

25
5.1 Sample Questionnaire

1. In which bank do you have your account?

 HDFC
 ICICI
 SBI
 BOI
 OTHERS

2. What is the reason for choosing this bank?

 Good Service
 Incentive Scheme
 Rate Of Interest
 Others

3. Do you have account in HDFC bank?

 YES
 NO

4. If yes, how long have you been a customer in HDFC bank?

 Less than 1 year
 1-3 years
 4-6 years
 More than 6 years

5. What type of account do you have in that bank?

 Saving Account
 Current Account
 De-mat Account
 Loan Account

26
 6. Are you aware of the services offered by HDFC bank?
 YES
 NO

7. From where you get to know about the product offered by any
bank?
 Advertisement
 Friends and relatives
 Social media
 Bank

8. How often do you use the product offered by any bank?

 Never
 Very often

9. What services do you expect from your bank?

 10 sec loan service
 Instant update
 Personalized service
 Wide network

10. Are you satisfied with your bank services?

 Yes
 No

5.2 Bibliography
 www.hdfcbank.com
 www.hdfcbank/products/finance

27
 Research Methodology, Methods and Techniques (CR Kothari & Gaurav Garg,
New Age International Publishers
 Business Research Methodology (J.K. Sachdeva, Himalaya Publishing House)
 www.bnknetindia/com/banking/finance
 http://en.wikipedia.org/wiki/bankingfinancialcompany
 Reichheld, F. F., & Kenny, D. W. (1990). The hidden advantages of customer
retention. Journal of Retail Banking, 12(4), 19-24.
 Chitra, K., & Subashini, B. (2011). Customer retention in banking sector using
predictive data mining technique. In ICIT 2011 The 5th International Conference
on Information Technology.
 Alnsour, M. S. (2013). How to Retain a Bank Customer: A Qualitative Study of
Jordanian Banks Relational Strategies. International Journal of Marketing
Studies, 5(4), 123.

28