A PROJECT REPORT ON

Awareness And Satisfaction Level Of Financial Products Offered By ICICI Bank And HDFC Bank
SUBMITTED TO GJU UNIVERSITY HISAR In the partial fulfillment of the requirement for the award of degree of

Masters of Business Administration

SUPERVISED BY:
(Lecturer) Department of Mgt. Studies

SUBMITTED BY:
Nitin Jain MBA 4th Sem.

Introduction
The project is an in-depth survey of products and services of ICICI Bank and HDFC Bank which gives us an insight of the awareness and satisfaction level of customers from the products and services availed by them from these banks. The project helps us in evaluating as to how these Banks can improve their products and services by fulfilling the demands of customers keeping in view the objectives of the company. The Project involves the information about the Financial Products and Services offered by ICICI Bank and HDFC Bank. These Banks provides better facilities to the customers. Most of the customers prefer the private banks because they are more tech-savvy and full of expertise. The private banks provide confidential and convenient access to a full range of personal and commercial financial services to their customers. There are two areas of competitions which banking industry is facing internationally and nationally. In the pre-liberalization era, Indian banks, could grow in a closed economy but the banking sector opened up for private competition. It is possible that private banks could become dominant players even within India. It has been recorded a rapid rise of the new private sector banks and it has tracked the transformation of the public sector banks as they grapple with the changes of financial deregulation. Use of ATM cards, Internet Banking, Phone Banking, Mobile Banking are the new innovative channels of banking which are being widely used as they result in saving both time and money which are two essential things that every one is short of and is running to catch hold of them. Moreover private sector banks are aligning its infrastructures, marketing quality and technology to build deep commitment in building consumer and retail banking. The main focus of these banks is on innovative range of services or products.

ICICI BANK
ICICI Bank started as a wholly owned subsidiary of ICICI Limited, an Indian financial institution, in 1994. Four years later, when the company offered ICICI Bank's shares to the public, ICICI's shareholding was reduced to 46%. In the year 2000, ICICI Bank offered made an equity offering in the form of ADRs on the New York Stock Exchange (NYSE), thereby becoming the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. In the next year, it acquired the Bank of Madura Limited in an all-stock amalgamation. Later in the year and the next fiscal year, the bank made secondary market sales to institutional investors.

PresentScenario
ICICI Bank has its equity shares listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited. Overseas, its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). As of December 31, 2008, ICICI is India's second-largest bank, boasting an asset value of Rs. 3,744.10 billion and profit after tax Rs. 30.14 billion, for the nine months, that ended on December 31, 2008.

Products & Services

Personal Banking Deposits NRI Banking Money Transfer Bank Accounts Investments Insurance Loans Cards Investments Insurance Demat Services Wealth Management

Loans

Business Banking
Corporate Net Banking Cash Management Trade Services FX Online SME Services Online Taxes Custodial Services

HDFC BANK
Housing Development Finance Corporation Limited, more popularly known as HDFC Bank Ltd, was established in the year 1994, as a part of the liberalization of the Indian Banking Industry by Reserve Bank of India (RBI). It was one of the first banks to receive an 'in principle' approval from RBI, for setting up a bank in the private sector. In 2008, RBI approved the amalgamation of Centurion Bank of Punjab with HDFC Bank. With this, the Deposits of the merged entity became Rs. 1,22,000 crore, while the Advances were Rs. 89,000 crore and Balance Sheet size was Rs. 1,63,000 crore. At present, HDFC Bank boasts of an authorized capital of Rs 550 crore (Rs5.5 billion), of this the paid-up amount is Rs 424.6 crore (Rs.4.2 billion). In terms of equity share, the HDFC Group holds 19.4%. Foreign Institutional Investors (FIIs) have around 28% of the equity and about 17.6% is held by the ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue). The bank has about 570,000 shareholders. Its shares find a listing on the Stock Exchange, Mumbai and National Stock Exchange, while its American Depository Shares are listed on the New York Stock Exchange (NYSE), under the symbol 'HDB'.

Products & Services

Personal Banking

 Savings Accounts NRI Banking Rupee Savings Accounts Rupee Current Accounts Rupee Fixed Deposits Foreign Currency Deposits Accounts for Returning Indians Cheque LockBox Telegraphic / Wire Transfer Funds Transfer through Cheques / DDs / TCs Mutual Funds Private Banking Portfolio Investment Schemes Loans Payment Services Salary Accounts Current Accounts Fixed Deposits Demat Account Safe Deposit Lockers Loans Credit & Debit Cards Prepaid Cards Investments & Insurance Forex Services Payment Services NetBanking MobileBanking ATM PhoneBanking

NetBanking MobileBanking ATM PhoneBanking

REVIEW OF LITERATURE
Lenka, Suar, Mohapatra, Service Quality, Customer Satisfaction, and Customer
Loyalty in Indian Commercial Banks in Journal of Entrepreneurship, Vol. 18, No. 1, 47-64 (2009) This article examines whether service quality of Indian commercial banks increases customer satisfaction that fosters customer loyalty. A questionnaire elicited information on socio demographic variables along with human, technical, and tangible aspects of service quality, customer satisfaction, and loyalty. Results suggest that better human, technical and tangible aspects of service quality of the bank branches increase customer satisfaction. Safeena, Abdullah, Date, Customer Perspectives on E-business Value: Case Study on Internet Banking in Journal of Internet Banking and Commerce April 2010, vol. 15, no.1 Information technology is considered as the key driver for the changes taking place around the world. This study determines the consumers perspective on internet banking adoption. Mukherjee, Nath, Nath Pal, Performance benchmarking and strategic homogeneity of Indian banks in International Journal of Bank Marketing Year 2002, Vlo. 2, Issue 3 This research paper explores the linkage between performance benchmarking and strategic homogeneity of Indian commercial banks. Devises a method of benchmarking performance of Indian commercial banks using their published financial information. Finds that the public sector banks generally outperform the private and foreign banks in this rapidly evolving and liberalizing sector. K. Nayan (1984) made a study and concluded that customer face a variety of difficulties in their dealings with banks, in respect of both credits and deposits. Customers also face many

difficulties namely, long waiting at the counters, unhelpful attitude of bank staff, non availability of necessary forms. Ramaswami (1985) evaluated the performance of PSBs after nationalisation and argued that to achieve the objective of social control, these is need for mobilising the savings of the community, structural transformation in the development of credit and support to priority and neglected sectors.

RESEARCH METHODOLOGY
MEANING OF RESEARCH Research comprises of defining and redefining problems, formulating hypothesis or suggested solutions, collecting, organizing and evaluating data making deductions and reaching conclusions. RESEARCH METHODOLOGY Research methodology is the base and systematic way of collecting and analyzing data in such a manner which gives us the relevant decision in economic way. Research methodology is the process of systematic and in-depth study or search for any subject or area of investigation, backed by collection, presentation, and interpretation of relevant details or data.

OBJECTIVES The general purpose of the study is to check how much aware the customers are about the financial products and how much satisfied they are from the services provided to them by ICICI Bank and HDFC Bank. This project would lead to the development of the following specific research objectives: To have an overview of the conceptual framework of ICICI Bank and To check the Awareness Level of people regarding the financial products HDFC Bank. and services offered by these banks. To study the pattern of investments made by the customers in HDFC Bank and ICICI Bank. To analyse the satisfaction level of people regarding the products and services provided by these banks. To study the factors influencing the choice of a Bank for availing services.

 To collect their suggestions about the improvement of banking sector in India.

RESEARCH DESIGN
Theory says that the research design must specify the data collection method, research instrument and sampling plan.

DATA COLLECTION METHOD In this case the data to be collected was Primary data & Secondary data i.e. the first hand response of the respondents & data collected from websites and magazines, respectively. The methodology for carrying out the survey was Personal Interviews with the help of an administered Questionnaire. Among the various methods of data collection viz. Observations, experimentation, mail questionnaire etc. the survey research method was used because it yields a broader range of information. SAMPLE SIZE 100

SAMPLING TECHNIQUE In order to trace the potential private banking customers the catchment areas in and around Muktsar and Bathinda was visited. The Convenient Sampling method was used to choose the sample for the survey DATA ANALYSIS Data was analyzed using MS-Excel. Results were drawn and some suggestions were also submitted, which were appreciated by the concerned personnel and many of them ought to be implemented as well. LIMITATIONS OF THE STUDY Although the study was carried out with extreme enthusiasm and careful planning there are several limitations, which handicapped the research viz, Time Constraints: The time stipulated for the project to be completed is less and thus there are chances that some information might have been left out, however due care is taken to include all the relevant information needed.

 Sample size: Due to time constraints the sample size was relatively small and would definitely have been more representative if I had collected information from more respondents. Accuracy: It is difficult to know if all the respondents gave accurate information; some respondents tend to give misleading information.

CONCLUSIONS AND SUGGESTIONS

FINDINGS Out of the sample of the investors so taken, It is clear that : 40% are Service Persons, 20% are Businessmen, 6% are Professionals, 18% are Retired, 4% are Housewives, 12% are Students. 62% are the persons who have family income < 5 Lacs, 20% are the persons who have family income between 5 -10 Lacs, 6% are the persons who have family income between 10-15 lacs, 12% are the persons who have family income > 15 Lacs. 38% are the persons who save <50000 p.a., 24% are the persons between 50000-1 lac p.a., 14% are the persons who save 1-2 lacs, 24% are the persons who save > 2 lacs. CONCLUSION The project entitled Awareness And Satisfaction Level Of Financial Products Offered By ICICI Bank And HDFC Bank has helped me in studying satisfaction about services and products offered to consumers. Since the opening up of the banking sector, private banks are in the fray each one trying to cover more market share than the other. The customers now days are not only exposed of what type of service is being provided by banks in India but in the world as a whole. They expect much more than what is actually being provided. So the new coming banking sector has to provide and cater to all the needs of the customers otherwise it is difficult to survive in the competition coming up. The customers not only expect the safety of money but also best ways to invest that money which need needs to be fulfilled. Banks need to have a better outlook towards to actually what customers are requiring. Entry of the private sector banks have made the competition more tough. If a bank is not functioning properly it is being merged into some other bank or

being closed. So it is difficult to face these types of conditions. Here a simple philosophy can work that customers are God and we need to follow this to survive and serve better. In this prevailing scenario, HDFC Bank and ICICI Bank have emerged as the leading private sector banks. The banking sector is poised for explosive growth. In this, scenario, it is imperative that banks adopt technology and use innovative strategies at an aggressive pace, if they wish to remain competitive

SUGGESTIONS These are some of the suggestions given by the customers of how the modern banking should be. These are the comments given by them about the improvement of the banking sector in India. Banks should obey the RBI norms and provide facilities as per the norms, which are not being followed by the banks. While the customer must be given the prompt services and the bank officer should not have any fear on mind to provide the facilities as per RBI norms to the units going sick. Banks should increase the interest rate of savings account. Banks should provide loans at the lower interest rates and education loans should be given with ease without much documentation. All the banks must provide loans against shares. Fair dealing with the customers. More contributions from the employees of the bank. The staff should be co-operative, friendly and must be capable of understanding the problems of the customers. Internet Banking facility must be made available in all the banks. Each section of every bank should be computerized even in rural areas also. Door to door service especially for the senior citizens of the country. New account opening can be clubbed to the insurance policies either life or general. Personalized banking should be given a thrust as more and more banks are achieving in usual services. Real Time Gross Settlement can play a very important role. Covering up the towns in rural areas with ATMs so that the people in those areas can also avail better services. No limit on cash withdrawal on ATM cards.

 Indian Banks should compete with international banks regarding Interest rates and services. One counter service and 24-Hour banking. Banking sector is improving by big leaps but still it needs to be improved. Proper and efficient relationship staffs having knowledge for one stop banking, customer friendly atmosphere, and better rate of interest are need of the hour. The concept of privatization has overall improved the services in all the banks. Home banking will be order of the day.

Annexure
1) What is your profession? Service Person Businessman Professional Retired Housewife Student Others (please specify) __________________ 2) What is your family income? Below 5 lacs p.a. 10 lacs - 15 lacs p.a. 5 lacs - 10 lacs p.a. Above 15 lacs p.a.

3) How much you save out of your earning? Below 50,000 p.a. 1 lac - 2 lacs p.a. 50,000 1 lac p.a. Above 2 lacs p.a

4) What sort of account you own at ICICI bank And HDFC Bank? Saving account Current account HNI accoun 5) Would you like to switch from your present investment plans to another? _______(Yes/no). 6) What type of returns you seek while investing? Minimum returns with minimum risk Constant returns High returns with high risk 7) How you manage your investments? Manage it myself. Handled by professional investment advisors.

8) Products you currently hold at ICICI bank And HDFC Bank?

Mutual fund investments Banking and deposit products

Investment in insurance products Demat account

If any other, please specify _______________________ 9) Are you satisfied with the services provided to you by ICICI Bank And HDFC Bank regarding the products you hold? _______(Yes/no).

Bibliography
C. R. Kothari, Business Research Methodology Phillip Kotler, Marketing www.google.com www.wikipedia.com www.icicibank.com www.hdfcbank.com www.investopedia.com www.business.mapsofindia.com www.bloomberg.com