PROJECT REPORT

ON

“PRODUCT & SEVICES OF HDFC BANK”

SUBMITTEED BY:

Anmol Saxena

B.COM(H)

Submitted to :- PROF. VANDANA MISHRA

ACKNOWLEDGEMENT:-

I would like to thank all those who have helped me in making this project directly as well as indirectly .To start with I would like to thank Dr.Vandana Mishra who provided me the opportunity to work on this project her guidance and suggestions made me possible to make this project complete.

ANMOL SAXENA

B.COM (Hons)

Anmolsaxena11021995@gmail.com

Admission number :- 13gsfc101001

Enrollment number:-1306102013

CONTENTS:-

1. Executive Summary2. Introduction of Banking3. Reason for selection of this topic4. Importance of company5. Learning from study6. Company profile7. Mission statements of HDFC bank8. Vision statements of HDFC bank9. Business strategy10. Product scope11. Product and services at glance12. Distribution13. Promoter14. Management15. Technology16. Quality policy17. Objectives, roles and limitations of study18. Findings19. Conclusions20. Recommendations21. References and Bibliography

SUMMARY

The Indian economy is highly influenced by rural economy, therefore the role of Regional Rural Banks (RRBs) in the Rural Banks in India are integral part of the rural credit structure of the country. Since the very beginning, when the RRBs were established in 2nd Oct 1975, these banks played a pivotal role in the economic development of Rural India.

The main goal of establishing regional rural banks in India was to provide credit to the rural people who are not economically strong enough especially the small and marginal farmers, artisans, agricultural labors, and even small entrepreneurs.

The history of Regional Rural Banks in India dates back to the year 1975. Regional Rural Banks were established under the provisions of an ordinance promulgated under the provisions of an ordinance promulgated on the 26th sept 1975 and the RRB act, 1975 with an objective to ensure sufficient institutional credit for agriculture and other rural/semi urban areas and grant loans and advances mostly to the small and marginal farmers. For the purpose of classification of bank branches, The Reserve Bank of India defines rural areas as a place with a population of less than 10,000. The RRBs are jointly owned by Government and Sponsor Banks; the issue capital of a RRB is shared by the owners in the proportion of Government and 50%, 15% and 35% respectively.

“DECLARATION”

I hereby declare that this project is the original piece of research work carried out by me under the guidance of Pro. Vandana Mishra pg GALGOTIAS UNIVERSITY .The information has been collected from the genuine source by me.

INTRODUCTION OF BANKING

The customer has come to realize somewhat belatedly that he is the king. The customer’s choice of one entity over another as his principal bank is determined by considerations of service quality rather than any other factor. He wants competitive loan rates but at the same time also wants his loan or credit card application processed in double quick time. He insists that he be promptly informed of changes in deposit rates and service charges and he bristles with “customary rage” if his bank is slow to redress any grievance he may have. He cherishes the convenience of impersonal net banking but during his occasional visits to the branch he also wants the comfort of personalized human interactions and facilities that make his banking experience pleasurable. In short he wants financial house that will more than just clear his cheques and updates his passbook: he wants a bank that cares and provides great services.

So does HDFC bank meet these heightened expectations? What are the customers “ perceptions of service quality of the banks? Which dimension of service quality of HDFC bank is performing well? To find out answers to these questions I undertook a survey of 2 branches of HDFC bank.

A lot of surveys have been done in the past to understand the aspect of customer satisfaction and to find out “SERVICE QUALITY OF HDFC BANK”.

HDFC Bank Limited

TYPE: public company

INDUSTRY: banking, financial services

FOUNDED: august 1994

HEADQUARTERS: Mumbai, Maharashtra, India

AREA SPREAD: worldwide

KEY PEOPLE: Aditya puri (MD)PRODUCTS: investment banking, investment management, wealth management, private Management, corporate banking, private equity, finance and insurance, consumer banking, mortgages, credit cards .HDFC bank limited is an Indian Banking and Financial Services company headquartered in Mumbai, Maharashtra incorporated in 1994, is the 5th largest bank in India as measured by assets.

“PROFILE OF THE COMPANY”

HDFC is one of India’s leading long-term life insurance company that offers a range of individual and group insurance solutions that meet various customer needs such as Protection, Pension, Savings and Investment and Health, along with Children and Women’s plan. HDFC life is joint venture between Housing Development Finance Corporation Limited (HDFC), India’s leading house finance institution and standard life plc, the leading provider of financial services in the United Kingdom HDFC Ltd. Holds 70.64% and standard Life (Mauritius Holding) Ltd. Holds 26.00% of equity in the joint venture, while the rest is held by others. HDFC Life’s product portfolio comprises solutions, which meet various customer needs such as Protection, Pension, Savings, Investment and Health. Customers have the added advantage of customizing the life insurance plans, by adding optional benefits called riders, at a nominal price. The company currently has 26 retail and 7 group products in its portfolio, along with 9 optional rider benefits catering to the savings, investment, protection and retirement needs of customers .The objective is to build sound customers 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 bank’s 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 4 core values which are as follows:-

1. Operational Excellence2. Customer Focus3. Product Leadership 4. People

MISSION OF BANK:-

World Class Indian Bank Benchmarking against international standards To build sound customer franchises across distinct businesses Best practices in terms of product offerings, technology, service levels, risk management

and audit and compliance

VISION OF BANK:-

The HDFC bank is committed to maintain the highest level of ethical standards, professional integrity and regulatory compliance. HDFC Bank’s business philosophy is based on 4 core values such as:

1. Operational excellence2. Customer Focus3. Product Leadership4. People

The objective of the HDFC Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one-step window for all his/her requirements. The HDFC Bank plus and the investment advisory services programs have been designed keeping in mind needs of customers who seeks distinct financial solutions, information and advice on various investment avenues.

BUSINESS STRATEGY:-

Increasing market share in India’s expanding banking Delivering high quality customer service Maintaining current high standards for assets quality through disciplined credit risk

management Develop innovative products and services that attract targeted customers and address

inefficiencies in the Indian financial sector.

PRODUCT SCOPE:-

HDFC Bank offers a bunch of products and services to meet the every need of the people. The company cares for both, individuals as well as corporate and small and medium enterprises. For individuals, the company has a range accounts, investment, and pension scheme, different types of loans and cards that assist the customers. The customers can choose the suitable one from arrange of products which will suit their life-stage and needs. For organizations the company has a hos t o f cus tomized so lu t i ons t ha t r ange f rom funded s e rv i ce s , Non- funded s e rv i ce s , Va lue addition services, Mutual fund etc. These affordable plans apart from providing long term value to the employees help in enhancing

goodwill of the company. The products of the company are categorized into various sections which are as follows:-

1. Accounts and deposits.2. Loans.3. Investments and Insurance.4. Forex and payment services.5. Cards6. Customer center

PRODUCTS AND SERVICES AT A GLANCE:- 

1 . Personal banking services2 . Accounts deposits and savings account3 . Regular savings account4 . Savings plus account5 . Savings max account6 . Senior citizens account7 . No frills account8 . Institutional savings account9 . Payroll account10. Classic Salary Account11. Regular Salary Account12. Premium Salary Account13. Defense Salary Account14. Kid's Advantage Account15. Pension Saving Bank Account16. Family Savings Account

Current Account:-

1. Plus Current Account2. Trade Current Account3. Premium Current Account4. Regular Current Account5. Apex Current Account6. Max Current Account

7. Reimbursement Current Account

Fixed Deposit:-

1. Regular Fixed Deposit2. Super Saver Account3. Sweep-in Account4. Recurring Deposit Demand Account5. Safe Deposit

Loans:-1. Personal Loans2. Home Loan3. Two Wheeler Loans4.  New Car Loans5. Used Car Loans6. Overdraft against Car 7. Express Loans8. Loan against Securities9. Loan against Property10. Commercial Vehicle Finance11. Working Capital Finance12. Construction Equipment Finance

Investments & Insurance:- 

1. Mutual Funds2. Insurance3. Bonds4. Financial Planning5. Knowledge Centre6. Equities & Derivatives7. Mudra Gold Bar 

Forex Services:-1. Trade Finance2. Travelers Cheque3. Foreign Currency Cash4. Foreign Currency Drafts5. Foreign Currency Cheque Deposits6. Foreign Currency Remittances7. Forex Plus Card

Payment Services:-1. Net safe2. Prepaid Refill3. Bill Pay4. Direct Pay5. Visa Money Transfer 

E-Monies Electronic Funds Transfer:-

1. Excise & Service Taxes

Access Your Bank - One View:- 

1. Instant Alerts2. Mobile Banking3. ATM4. Phone Banking5. Branch Network 

Cards:-

1. Silver Credit Card2. Gold Credit Card3. Woman's Gold Credit Card4. Platinum plus Credit Card5. Titanium Credit Card6. Value plus Credit Card7. Health plus Credit Card8. HDFC Bank Idea Silver Card9. HDFC Bank Idea Gold Card

WHOLESALE BANKING SERVICES:-

1. Funded Services2.  Non Funded Services3. Value Added Services4. Internet Banking

5. Clearing Sub-Membership6. RTGS – sub membership7. Fund Transfer 8. ATM Tie-ups9. Corporate Salary a/c

Tax Collection:-

1. Financial Institutions2. Mutual Funds3. Stock Brokers4. Insurance Companies5. Commodities Business6. Trusts

NRI BANKING SERVICES:-

1. Rupee Saving a/c2. Rupee Current a/c3. Rupee Fixed Deposits4. Foreign Currency Deposits5. Accounts for Returning Indians6. Payment Services7.  Net Safe8. Bill Pay9. Instant Pay10. Direct Pay11. Visa Money12. Online Donation13. Remittances

DISTRIBUTION NETWORK:-

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over 1229 branches spread over 444 cities across India. All branches are linked on an online real-time basis. Customers in over 120 locations are also serviced through Telephone banking. The banks expansion plans take into account the needs to have a presence in all major industrial and commercial centers where its corporate customers are located as well as the need to build a strong retail customer base for both deposits and loan products. Being a clearing/ settlement bank to various leading stock exchanges, the bank has branches in the centers where the NSE/BSE has a strong and active member base.

The bank also has a network of about over 2526 networked ATMs across these cities. Moreover, HDFC bank’s ATM network can be accessed by all domestic and international Visa/ Matercard, Visa Electron/Maestro, etc.

PROMOTER:-

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 a market leader in mortgages.Its outstanding loan portfolio covers well over a million dwelling units. HDFC has developed significant expertise in retail mortgages loans to different market segments and also has a large corporate client base for its housing related credit facilities. With its experience in the financial markets, a strong market reputation, large shareholders base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment.

MANAGEMENT:-

Mr. C.M . Vasudev has been appointed as the chairman of the bank with effect from 6th july 2010 subject to the approval of the Reserve Bank of India and the shareholders.Mr. Vasudev has had been a director of the bank since October 2006. A retired IAS officer, Mr. Vasudev has had illustrated career in the civil services and has held several key positions in India and overseas, including finance secretary, Government of India, Executive Director, World Bank and Government nominee on the Boards of many companies in the financial sector.

TECHNOLOGY:-

HDFC bank’s 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 (ATMs).

The bank has made sustained 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 provides 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.

*INNOVATION:-

Recognizing the different needs of our customers, the bank offers a range of innovative products to meet these needs.

*INTEGRITY

*CUSTOMER CENTRIC

*TEAM WORK

*JOY AND SIMPLICITY

“OBJECTIVES, ROLES AND LIMITATIONS OF STUDY”

OBJECTIVES:-

1. To examine the essential dimensions of service quality i.e., RATER- Reliability, assurance, tangibles, empathy and responsiveness of HDFC bank and its effect on customer’s satisfaction.

2. To find out the level of perception of the customers from the service quality offered by the banks.

3. To know which service quality dimension of the bank is performing well.4. To identify which dimension of service quality needs improvement so that the quality of

service of HDFC banks is enhanced.

IMPORTANCE:-

The study would try to throw some insights into the existing services provided by the banks, perceptions and the actual services quality of the bank. The results of the study would be able to recognize the lacunae in the system and thus provide key areas where improvement is required for better performance and success ratio. In the days of intense competition, superior service is the only differentiator left before the banks to attract, retain and partner with the customers.

SCOPE:-

The scope of this research is to identify the service quality of HDFC bank. This research is based on primary data and secondary data. This study only focuses on the dimensions of service quality

i.e., RATER. It aims to understand the skill of the company in the area of service quality that are performing well and shows those areas which require improvement. The study was done taking two branches of HDFC bank into consideration. The survey was restricted to the bank customers in Delhi only.

LIMITATIONS:-

1. The study for HDFC Bank confined to a particular location and a very small sample of respondents. Hence the findings cannot be treated as representative of the entire industry.

2. The study can also not be generalized for public and private sector banks of the country.

3. Respondents may give biased answers for the required data. Some of the respondents did not like to respond.

4. Respondents tried to escape some statements by simply answering “neither agree nor disagree” to most of the statements. This was one of the most important limitation faced, as it was difficult to analyses and come at a right conclusion.

FINDINGS:-

1. The Reliability dimension of service quality is better as compared to empathy and tangibility. Still the score is low. For most services, customer’s perceptions of whether the service has been performed correctly, and not provider-established criteria, are the major determinants of reliability. Customers of the bank hesitste to rely on the bank. Whenever they have a problem, the bank shows sincere interest in solving it but the services are not performed by certain time as promised. The employees should take this problem seriously and take steps to remove this.

2. As score for Assurance is at second place after responsiveness, so the customers of HDFC bank are very confident and feel safe while transacting with the bank. Moreover the employees of the bank have proved to be trustworthy. Employees are also educated enough to answer all questions.

3. The score of Tangibility dimension of service quality of HDFC bank is the lowest. The service quality factor tangible is defined by whether the physical facilities and materials associated with the service are visually appealing at the bank. These are all factors that customers notice before or upon entering the bank. Customers expectations regarding visual appealing of HDFC bank. Respondents were uncertain about the neat appearance of the reception desk employees. So they should work on that and try to fulfill the gap.

4. According to my findings, the score of Empathy is not satisfactory but not unsatisfactory also. HDFC bank is unable to give individual attention to its customers and is unable to understand specific needs of its customers. But still bank has taken steps to satisfy its customers by keeping operating hours convenient to its customers and keeping their interest best at heart.

5. In HDFC bank, the score of Responsiveness is highest so they are focusing on prompt services, employees are willing to help the customers and say the exact time when the services will be performed. Employees at bank give their customers first preference and are always ready to help them. Overall HDFC bank’s responsiveness dimension of service quality is the higher.

6. According to the customer perception, HDFC bank is highly responsive. Customers are assured while transacting with the bank. The reliability dimension is lower than the first to dimension. They feel that the bank is unable to give them individual attention and its equipments are not modern and sufficient for the bank.

7. There is not much gap between all the dimensions, this shows that HDFC bank is a better service provider in all the dimensions i.e., reliability, assurance, tangibility, responsiveness and empathy. As a result of which, the customers are satisfied with the service offered by HDFC bank.

CONCLUSIONS:-

Based on the study conducted it can be conducted that responsiveness, assurance and reliability are the critical dimensions of service quality of HDFC bank and they are directly related to overall service quality. The factors that may delight customers tend to be concerned more with the intangible nature of the service, commitment, attentiveness, friendliness, care and courtesy. The employees give prompt services, always are ready to answer the questions and are trustworthy. The main sources of dissatisfaction appear to be cleanliness, up to date technology modern equipments, and neatly dressed up employees. The tangibility dimension of service quality of HDFC bank is highly disappointing and serious steps are needed to be taken to enhance this dimension. To satisfy

these customers, the management can take some attempts, noted earlier as recommendations. The study brings about the areas which require urgent attention of employees, the management and the policy makers of the industry. These are areas in which customers are hugely dissatisfied with the services of the banks against their expectation. This high degree of dissatisfaction resulting from the services received clearly questions the design of services or subsequent response of the bank employees. These limitations are too serious to be avoided as these question the front-line people dealing with the customers and the approach of the management in taking customers seriously.The management should understand the benefits of service quality. It include increased customer satisfaction, improved customer retention, positive word of mouth, reduced staff turnover, decreased operating costs, enlarged market share, increased profitability, and improved financial performance. In the days of instance competition, superior service is only differentiator left before the banks to attract, retain and partner with the customers. Superior service quality enables firm to differentiate itself from its competition, gain a sustainable competitive advantage, and enhance efficiency.

RECOMMENDATIONS:-

1. Reliability is an obvious place to start. Customers of the bank want to know their resources are safe and within trustworthy institutions. A way to ensure this peace of mind would be to take steps to ensure bank employees are well trained, so each bank associate is able to offer complete and comprehensive information at all times. Consistent policies combined with a knowledgeable staff will foster a high degree of institutional cohesion and reliability.

2. Responsiveness, again when associated with a well-trained staff and timely answers to service-related questions, would make significant inroads into causing HDFC bank be regarded as responsive. Staff should be encouraged to present relevant options to banking customers in a manner that does not resemble salesmanship so much as a drive to serve.

3. Intangibles please customers just as much as intangible in the banking industry. People tend to visit the same branch of bank over and over again. Usually, this is a location close to their home or their workplace. It is natural that customers become comfortable and habituated to these branch banks, for the same reason they develop familiarity with a neighborhood supermarket or convenience store. It makes sense that bank employees would be encouraged to learn to recognize these regular customers, learn their names, and begin to identify their basic service requirements.

4. Learning to understand customer needs will allow bank associates to offer enhanced services, perhaps lowering customers banking costs and increasing their investment potential. This could also open up the possibility of increased profits for banks, for when perceived as more service and customers oriented, they will, in effect, become a useful and pleasant way to shop.

5. Keeping the bank with up-to-date technologically are important factors. Modern equipments, new improved technology should be replaced with the old ones. If the staff inside is pleasant and well-informed, in an aesthetically pleasing environment, then customers satisfaction will be high.

6. The five-dimensional structure could possibly serve as a meaningful framework for trading it against the performance of competitors. Items on some dimensions should be expanded if that is necessary for reliability.

7. Thus, the banking industries must continuously measure and improve these dimensions in order to gain customers loyalty.

“REFERENCES AND BIBLIOGRAPHY”

REFERANCES:Kotler Philip, marketing management (Pearson Education)

WEBSITE:www.hdfcbank.comwww.hdfcindia.comwww.wikipedia.orgwww.marketresearch.com