project report on the HDFC BANK LTD.
-
Upload
preeyankagupta -
Category
Documents
-
view
208 -
download
8
Transcript of project report on the HDFC BANK LTD.
1.1 GENERAL INTRODUCTION ABOUT THE
SECTOR
The Indian economy is emerging as one of the strongest economy of the
world with the GDP growth of more than 8% every year. This has given a
great support for the development of banking industry in the country .Due to
recession it has come down to 5.7%. But market now stabilizing.
Due to globalization, competition among the banks has drastically been
increased .As India has a substantial upper and middle class income hence
the banks have immense opportunities to increase their market shares. The
consumer being on the receiving end is in the comfortable position but the
banks trying to increase their market share have to continuously add value for
consumers in order to increase market share and sustain their growth.
BANKING SECTOR
The banking sector is the most dominant sector of the financial system in
India. Significant progress has been made with respect to the banking sector
in the post liberalization period. The financial health of the commercial banks
has improved manifolds with respect to capital adequacy, profitability, and
asset quality and risk management. Further, deregulation has opened new
opportunities for banks to increase revenue by diversifying into investment
banking, insurance, credit cards, depository services, mortgage,
securitization, etc. Liberalization has created a more competitive environment
in the banking sector
1 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
1.2 INDUSTRY PROFILE
a) ORIGIN AND DEVELOPMENT OF THE INDUSTRY
The origin of banking in India is traceable in ancient time through the modern
banking hardly 200 years old. The main function of bank is to accept deposits
and grant loans. There is evidence of these functions being performed by a
section of the community in the Vedic periods. There are many references of
debt in the Vedic literature. During the Ramayana and Mahabharata areas
banking, which was a side business during the Vedic period, become a full-
time business activity for the people. During the smriti period, which followed
the Vedic period and the Epic age, bankers performed the function of the
modern banks. The members of the Vaish community carried on the banking
business and Manu speaks of earning through interest as the business of
Vaishays. He accepted deposits from the public, granted loans against
pledges and personal security, granted simple open loans, acted as bailee for
his customers, subscribed to public loans by granting loans to kings, acted as
treasurer and banker to the state and managed the currency of the country.
Indigenous bankers used to maintain a regular system of accounts and
borrowers used to sign the loan deeds.
2 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
Retail banking
According to investopedia.com, retail banking is typical mass-market banking
where individual customers use local branches of larger commercial banks.
Services offered include: savings and checking accounts, mortgages,
personal loans, debit cards, credit cards, and so forth.
Types of retail banks
Private bank
Private Banks is a bank that is not incorporated. Either an individual or a
general partner(s) with limited partner(s) owns a non-incorporated bank. In
any such case, the creditors can look to both the "entirety of [the bank's]
assets" as well as the entirety of the sole-proprietor's/general-partners'
assets.
These banks have a long tradition in Switzerland, dating back to at least the
revocation of the Edict of Nantes (1685).
Commercial banking
A commercial bank is a type of financial intermediary and a type of bank.
Commercial bank has two possible meanings:
Commercial bank is the term used for a normal bank to distinguish it from an
investment bank. This is what people normally call a "bank". The term
3 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
"commercial" was used to distinguish it from an investment bank. Since the
two types of banks no longer have to be separate companies, some have
used the term "commercial bank" to refer to banks which focus mainly on
companies. In some English-speaking countries outside North America, the
term "trading bank" was and is used to denote a commercial bank. It raises
funds by collecting deposits from businesses and consumers via checkable
deposits, savings deposits, and time (or term) deposits. It makes loans to
businesses and consumers. It also buys corporate bonds and government
bonds. Its primary liabilities are deposits and primary assets are loans and
bonds. Detailed information on banks sectoral exposure of credit reveals that
over two-thirds of the credits flow has been on account of retail, housing and
other priority sector loans. Banks credit flow exposure to large Enterprises
continues to remain buoyant with recent indications that credit to agriculture
and Micro credit has also picked up. The Investment Banking and Markets
division brings together the advisory and financing, equity securities, asset
management, treasury and capital markets, and private equity activities of the
Group to complete the CIBM structure and provide a complete range of
financial products to our clients. Increasingly, ECA financing is being
considered by customers and we work closely with our project export finance
teams, both onshore and offshore, to provide structured solutions.
4 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
b) GROWTH AND PRESENT STATUS OF THE
INDUSTRY
Commercial banking can also refer to a bank or a division of a bank that
mostly deals with deposits and loans from corporations or large businesses,
as opposed to normal individual members of the public (retail banking). as in
the Indian banking.. The most prominent on our minds in the context of
banking these days, perhaps, are the implications arising out of the Basel II
accord. Banks, as we all know, are subjected to more intense regulation as
compared to the non-financial firms. This is probably because the banks
possess certain 'special' characteristics: Banks are much more leveraged
than the other firms due to their capacity to garner public deposits. The asset -
liability structure of the banks is also different from not only the non-financial
firms but also the financial firms. To illustrate, the risk in an insurance
company arises mainly from the liability side of the balance sheet in the form
of insurance claims whereas for the bank the risk mainly comes from the
diminution of asset values (for example, illiquid loans that are not fully
recoverable). The deposits which constitute a major part of the liability of
banks are repayable on demand, unsecured and their principal amount does
not change in value whereas the loans of a bank are illiquid and there can be
erosion in the value of loans or of other assets. The liquidity transformation by
an insurance company is in the reverse direction as compared to a bank. The
balance-sheet structure of an insurance company is the least likely to give rise
5 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
to systemic risk, whereas banks due to their typical asset liability mismatches
i.e. long term assets funded by short term liabilities, may be prone to ‘run’ and
pose a very high degree of potential systemic risk. The resolution costs of
systemic bank insolvencies and significant problems can be substantial.
weighted differently.
Basel I proposals forced the banks to look at credit risk and regulatory capital
more closely than they had done earlier. As banks found ways to arbitrage
regulatory capital, some of the provisions of Basel I became less relevant.
Simultaneously, banks in the G-10 countries developed newer approaches to
manage credit risk by building portfolio models for pricing, provisioning and
allocating economic capital for the credit portfolios. These developments
made the weaknesses in the Basel I framework more apparent and this set
the stage for the creation of 'International Convergence of Capital
Measurement and Capital Standards: A Revised Framework', popularly
known as Basel II.
The Basel Committee on Banking Supervision has observed that the
fundamental objective in revising the 1988 Accord has been, and I quote, 'to
develop a framework that would further strengthen the soundness and
stability of the international banking system while maintaining sufficient
consistency that capital adequacy regulation will not be a significant source of
competitive inequality among internationally active banks. The (Basel)
Committee believes that the revised Framework will promote the adoption of
stronger risk management practices by the banking industry, and views this
as one of its major benefits' Unquote
6 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
c) Future of the industry
Reflecting on future prospects in banking, immediate focus has to be on the
cleaning up of the remnants of undercapitalized banks, while concentrating on
improvements in the rural co-operative credit system. It is also necessary to
ensure improvements in their governance and financial management. In the
banking system as a whole, a healthy credit culture encompassing
appropriate pricing, quality of service, financial inclusion and contract-
enforcement would be vital.
The Reserve Bank of India has, in the service of our country, a proven track
record and professionalism, which have lent it considerable credibility - both
domestically and globally. This credibility enables the RBI to confidently carry
the reforms forward to credibly maintain price and financial stability, while
enabling self-accelerating equitable growth at elevated levels
The Indian financial sector is ready for consolidation, said 95 per cent of the
respondents. Given the increased competition, and the implementation of
Basel II norms in the near future, the banking industry of the country would be
better off with six to seven banks as big as State Bank of India, said the
survey. However, voluntary mergers are better than forced ones.
A majority of the public sector banks also demanded more autonomy to fix
salary levels proportionate to performance. In order to improve employee
productivity it is essential to offer competitive compensation packages at all
levels, the survey said. About 92 per cent of the public sector banks
7 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
respondents voiced that they do not have sufficient autonomy to offer
attractive incentive packages to employees to ensure commitment levels.
Some banks also said that in one-year's time, banks should be permitted to
issue preference shares. According to the survey, some of the strengths of
the banking industry are regulatory systems, economic growth, technological
advancement, risk assessment systems and credit quality.
Areas that need improvement include diversification of markets beyond big
cities, human resources systems, size of banks, high transaction costs,
infrastructure and labour inflexibilities.
As per the survey some strategies that can help India achieve a world class
banking system are consolidation, strict corporate governance norms,
regional expansion within the country and outside, higher FDI limits and Free
Trade Agreements with countries where India has comparative advantage in
banking sector.
"Availability and reach of quality products is confined to just big cities. Thus it
is essential now to expand the gamut of banking services both within India as
well as outside," the survey said. However, banks in India are yet to effectively
leverage technology. ICICI Bank has been acknowledged to be among the
first to explore new mediums like Internet.
India has among the lowest penetration of retail loans in Asia. Though the sector has
been growing at around 15 per cent, there is still a huge opportunity to tap into.
Middle and -high-income homes in India has increased from 1.16 crore (11.6 million)
in 1995 to 2.57 crore (25.7 million) in 2002. Interest rates on retail loans have been
8 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
dropping rapidly too. For instance residential mortgages slumped by 7 per cent over
the last four years.
Sector Share of GDP % Growth of Q1 FY 2003 Growth in Q2 FY 2003
Services 56.1 7.4 9.8
Industry 21.8 5.8 6.3
Agriculture 22.1 1.7 7.4
GDP 5.7 8.4
"The entry of a number of banks in India in the last few years has helped
provide increased coverage and a number of new products in the market,"
says Kamath.
banking sector today is estimated to be at Rs 17 trillion and total deposits are
estimated at Rs 13 trillion.
9 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
2.1 ORIGIN OF THE ORGANIZATION
The Housing Development Finance Corporation Limited (HDFC) was
amongst the first to receive an 'in principle' approval from the Reserve Bank of
India (RBI) to set up a bank in the private sector, as part of the RBI's
liberalization of the Indian Banking Industry in 1994. The bank was
incorporated in August 1994 in the name of 'HDFC Bank Limited', with its
registered office in Mumbai, India. HDFC Bank commenced operations as a
Scheduled Commercial Bank in January 1995.
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.
10 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
2.2 GROWTH AND DEVELOPMENT OF THE ORGANIZATION
HDFC Bank is head quartered in Mumbai. The Bank at present has an
enviable network of over 684 branches spread over 316 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 Bank's
expansion plans take into account the need 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 have a
strong and active member base. The Bank also has a network of about over
4000 networked ATMs across these cities. Moreover, HDFC Bank's ATM
network can be accessed by all domestic and international Visa/MasterCard,
Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge
cardholders.
In a milestone transaction in the Indian banking industry, Times Bank Limited
(another new private sector bank promoted by Bennett, Coleman & Co./Times
Group) was merged with HDFC Bank Ltd., effective February 26, 2000. As
per the scheme of amalgamation approved by the shareholders of both banks
and the Reserve Bank of India, shareholders of Times Bank received 1 share
of HDFC Bank for every 5.75 shares of Times Bank.
11 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
2.3 PRESENT STATUS OF THE ORGANIZATION
At present HDFC Bank is the leading most bank in the housing and
development sector and is growing very fast in the other banking sectors such
as life insurance & mutual fund.
The authorized capital of HDFC Bank is Rs.450 crore (Rs.4.5 billion). The
paid-up capital is Rs.311.9 crore (Rs.3.1 billion). The HDFC Group holds
22.1% of the bank's equity and about 19.4% of the equity is held by the ADS
Depository (in respect of the bank's American Depository Shares (ADS)
Issue). Roughly 31.3% of the equity is held by Foreign Institutional Investors
(FIIs) and the bank has about 190,000 shareholders. The shares are listed on
The Stock Exchange, Mumbai and the National Stock Exchange. The bank's
American Depository Shares are listed on the New York Stock Exchange
(NYSE) under the symbol "HDB.
HDFC Limited, Bennett, Coleman & Co. Ltd. and its group companies (the
promoters of erstwhile Times Bank Limited) and Chase Funds had entered
into tripartite agreement dated November 26, 1999 for effecting amalgamation
of Times Bank Limited with the Bank. Under this Agreement, Bennett
Coleman Group has a right to nominate one Director on the Board of the Bank
as long as its holding exceeds 5% of the share capital of the Bank. Currently,
as on March 31, 2007, the Bennett Coleman Group holds 5.15% of the share
capital of the Bank and Mr. Vineet Jain represents the group on the Board of
the Bank.
12 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
2.4 FUNTIONAL DEPARTMENT OF THE ORGANIZATION
13 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
Chairman
Managing Director
Executive Director
Regional Sales Head
Area sales Head
Area Sales Manager
Deputy Sales Manager
Team Leader
Contract Sales Executive
2.5 ORGANIZATION STRUCTURE AND ORGANIZATION CHART
14 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
Chairman
Managing Director & C E O
Joint Managing Director
(International Business)
Joint Managing Director
(Domestic Banking)
Executive Director
(Corporate Center)
Executive Director
(Wholesale Banking)
Executive Director
(Retail Banking)
Executive Director
(Project Finance)
Sr. General Managers
General Managers
2.6 PRODUCT AND SERVICE PROFILE OF THE
ORGANIZATION
Wholesale Banking Services
The Bank's target market ranges from large, blue-chip manufacturing
companies in the Indian corporate to small & mid-sized corporate and agri-
based businesses. For these customers, the Bank provides a wide range of
commercial and auctional banking services, including 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. Based on its
superior product delivery / service levels and strong customer orientation, the
Bank has made significant inroads into the banking consortia of a number of
leading Indian corporates including multinationals, companies from the
domestic business houses and prime public sector companies. It is
recognized as a leading provider of cash management and transactional
banking solutions to corporate customers, mutual funds, stock exchange
members and banks.
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-
15 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
stop window for all his/her banking requirements. 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 September
30, 2005, the bank had a total card base (debit and credit cards) of 5.2 million
cards. The Bank is also one of the leading players in the "merchant acquiring"
business with over 50,000 Point-of-sale (POS) terminals for debit / credit
cards acceptance at merchant establishments.
Deposits
I. Savings Account
These accounts are primarily meant to inculcate a sense of saving for the
future, accumulating funds over a period of time. Whatever customer
occupation, bank is confident that customer will find the perfect banking
solution.
Debit-cum-ATM card
Auto Invest Account
Internet Banking
Phone banking
Anywhere Banking
Standing Instruction
16 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
Nomination facility
Doorstep service
II. Special savings account
Comprehensive banking
Solution with added features
Supplementary savings
Ideal for tax-exempt entities
Internet banking
Anywhere banking
Doorstep service
Inward remittance
III. Senior Citizen Services
Higher interest rates
Special demand loans against deposit
Free collection of outstation cheques drawn on our locations.
Debit-cum-ATM-card
Auto Invest Account
Internet banking
Phone banking
Anywhere banking
Standing instructions
Nomination facility
17 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
IV. Fixed deposits
Wide range of tenures
Choice of investment plans
Partial withdrawal permitted
Safe custody of fixed deposit receipts
Auto renewal possible
Loan facility available
V. D-Mat accounts
Free trading account
Online buying and selling of shares
Less documentation
Can control loss of money
18 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
2.7 MARKET PROFILE OF THE ORGANISATION
HDFC Bank has its deposit programmes rated by two rating agencies - Credit
Analysis & Research Limited. (CARE) and Fitch Ratings India Private Limited.
The Bank's Fixed Deposit programme has been rated 'CARE AAA (FD)'
[Triple A] by CARE, which represents instruments considered to be "of the
best quality, carrying negligible investment risk". CARE has also rated the
Bank's Certificate of Deposit (CD) programme "PR 1+" which represents
"superior capacity for repayment of short term promissory obligations". Fitch
Ratings India Pvt. Ltd. (100% subsidiary of Fitch Inc.) has assigned the "tAAA
(ind)" rating to the Bank's deposit programme, with the outlook on the rating
as "stable". This rating indicates "highest credit quality" where "protection
factors are very high". HDFC Bank also has its long term unsecured,
subordinated (Tier II) Bonds of Rs.4 billion rated by CARE and Fitch Ratings
India Private Limited. CARE has assigned the rating of "CARE AAA" for the
Tier II Bonds while Fitch Ratings India Pvt. Ltd. has assigned the rating "AAA
(Ind)" with the outlook on the rating as "stable". In each of the cases referred
to above, the ratings awarded were the highest assigned by the rating agency
for those instruments?
Within this business, the bank has three main product areas - Foreign
Exchange and Derivatives, Local Currency Money Market & Debt Securities,
and Equities. With the liberalization of the financial markets in India, corporate
need more sophisticated risk management information, advice and product
19 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
structures. To comply with statutory reserve requirements, the bank is
required to hold 25% of its deposits in government securities.
3.1 STUDENTS WORK PROFILE (Role and Responsibility).
I am working as contract sales executive in HDFC bank; my role is to find out
people who want to open savings A/c. I have to convince the customers to
open savings account in our bank. After convincing, I use to fill up the forms
through customers and collect their documents to login the form for opening
their accounts. There are some targets in a month, which we need to reach in
bank. I have done many activities like park activities, ATM activities,
Apartments activities etc to generate my leads. By doing these activities we
get customers for opening accounts. The roles and responsibilities handled by
me are:
1) Generating leads for opening accounts
2) Preparing daily sales report of daily activities
3) Answering to customer queries.
4) Verification of the documents given by the customers.
After three month working experience I came to know how to handle the
people & task in the organization. Now I feel much confident.
Being a sales executive I have to answer to the customers as well as team
leader to the queries. I have to fulfill my individual target.
20 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
3.2 DESCRIPTION OF LIVE EXPERIENCES.
This training has helped me a lot in understanding the realities of the outside
world. I also came to know the real meaning of the word marketing. There are
both negative and positive experiences of our training. Some of these are:
Real exposure to the corporate world, which helped me a lot in
understanding the mind, set of executives to a certain extent.
Learned about customer requirements, customer mind set how to
convince others and many.
It helped me in improving my communication skills, presentation skills
and how to behave in front of public.
Apart from these positive experiences I faced certain problems too
which I would like to discuss here:
It was quite difficult in the beginning to cope with both college studies
and job.
Initially it took me sometime to understand the process of sales
opening, closing, however with time I understood the problem and
worked on it sincerely. Now I feel much more confident in handling
sales calls.
21 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
4.1 STATEMENT OF RESEARCH PROBLEM
The company must gain confidence of the customers and provide services
par excellence. Therefore, undertaking the project helps in assessing the
customer care level of HDFC BANK. The study is applied descriptive as well
as diagnostic in nature. It also tends to find the customer view about
important aspects of the services. At the same time it was intended to find the
customer view about the product and the quality of service improvement. In
short this problem can be defined as: “Are customers satisfied with the
services at HDFC?”
In today’s era of cutthroat competition, it is of an uttermost importance to gain
a cutting edge over the competition, and develop a large market share. This
is only possible if there is a large customer base for the company.
22 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
4.2 STATEMENT OF RESEARCH OBJECTIVES:
1. To evaluate the perception level of the account holders towards HDFC BANK
2. To study the importance of customer relationship.
3. To study the impact of customer relationship management on bank customers.
4. To analyze the expectations of banking customers.
5. To suggest the banks under study to strengthen the customer relations.
6. To analyze the satisfaction level of customers of HDFC BANK on the following heads:
1. Working environment
2. Customer care
3. Personal care of the customers
4. Bank timings
5. Overall services
6. Special schemes provided
23 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
4.3 RESEARCH DESIGN AND METHODOLOGY.
THE METHOD USED OF DATA COLLECTION ARE:
Primary Data
Secondary Data
PRIMARY DATA: Primary data are data’s, which are original in nature, and
are collected by the researcher. The method used to collect the primary data
was Survey Method. The survey method included a structured questionnaire
that was given to the respondent.
SECONDARY DATA: Secondary data are data, which has been collected
and compiled in advance for another needed purpose. Secondary data is an
important method to know the present problem faced by the account holders
in the field of HDFC BANK. Newspaper, Articles, Books, Magazines etc. have
been used to prepare the questionnaire.
PLAN OF ANALYSIS :
Calculations have been done for interpretation such as percentages,
averages.
The data collected from respondents through questionnaire are organized,
coded, processed and tabulated in order to create graphs and charts to make
the project understandable. Chi Square Test is performed on the inferred data
to arrive at a statistical conclusion.
24 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
TOOLS FOR DATA COLLECTION
The tool used for data collection is Primarily “Questionnaire method”. The
questions contained:
Open- Ended Questions
Where the respondent was given a chance to reply or give suggestions to the
Company. This included Free Responses questions where the respondents
were given the freedom to give suggestions.
Close - Ended Questions
Where the respondent was given a lesser chance to reply. This includes
multiple Choice Questions where the respondents were given a number of
alternatives.
Scales
Respondents were given a scale whose positions range from “Highly
Satisfied” to “Highly Dissatisfied”
Area of survey
The area selected to find the satisfactory level was in and around
Bannerghatta Road.
Sample Unit
The sample was considered to be the Customers of HDFC BANK
SAMPLING:
Random sampling method to select a sample of 100 customers among the
customers of the HDFC BANK.
25 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
4.4 ANALYSIS OF DATA
As the competition level in the banking sector is ever increasing, it becomes
indispensable for the company (HDFC) to conduct the study on the perception
and satisfaction level of its customers. This study will help the company in
making its new strategies to satisfy its customer in the ways in which he or
she wants to be satisfied and to the company its position in the market.
The study on customer satisfaction has the geographical coverage limited to
Bannerghatta Road only. This study will help the company to know in detail
about the customer perception and their attitude towards the company
services and products. The company will gain the feedback from the
customer to improve its products and quality of service.
26 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
TABLE 1: SHOWING DISTRIBUTION OF AGE
AGE GROUP NO. OF RESPONDENTS PERCENTAGE
20 – 30 22 22%
30 – 40 43 43%
40 AND ABOVE 35 35%
TOTAL 100 100%
ANALYSIS
The above table shows that 22% of the respondents fall under the
age group of 20 – 30 years ,43% of the respondents fall under age
group of 30 – 40 years and 35% of the respondents belonging to age
group of 40 and above years.
INFERENCE
Hence it clearly shows that the majority of the respondents fall under
the age group of 30 – 40 years i.e. 43%.
27 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
28 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
GRAPH-1
TABLE 2: SHOWING DISTRIBUTION OF SEX OR
GENDER
GENDER NO. OF RESPONDENTS PERCENTAGE
FEMALE 43 43%
MALE 57 57%
TOTAL 100 100%
ANALYSIS
The table shows that there are 57% of male respondents and 43% of
female respondents.
INFERENCE
Thus the table clearly shows that the majority of the respondents are
male i.e. 57%.
29 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
30 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
GRAPH-2
TABLE 3: SHOWING THE DISTRIBUTION OF THE
MONTHLY HOUSEHOLD INCOME
MONTHLY HOUSEHOLD
INCOME
NO. OF RESPONDENTS PERCENTAGE
LESS THAN RS 10,000 0 0%
RS 10,000 – RS 20,000 23 23%
MORE THAN RS 20,000 77 77%
TOTAL 100 100%
ANALYSIS
The above table shows that there are no respondents who have a
monthly household income of less than Rs 10,000, there are 23% of
the respondents who fall under Rs 10,000 – Rs 20,000 household income
and 77% fall under the more than Rs 20,000 household income
category.
INFERENCE
The table clearly shows that the majority of the respondents have more
than Rs 20,000 of monthly household income, that is 77%.
31 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
32 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
GRAPH-3
TABLE 4: SHOWING THE IMPORTANCE OF A
SMILING EMPLOYEE ACCORDING TO A CUSTOMER
IMPORTANCE NO. OF RESPONDENTS PERCENTAGE
VERY IMPORTANT 55 55%
SOMEWHAT IMPORTANT 20 20%
NOT SO IMPORTANT 20 20%
NOT AT ALL IMPORTANT 5 5%
TOTAL 100 100%
ANALYSIS
According to the table 55% of the respondents feel its extremely
important for a employee to welcome a customer with a smile,20%
respondents think its somewhat important while 20% feel its not so
important and 5% think its not at all important.
INFERENCE
Hence when a customer enters the bank , he looks for a smiling
employee to welcome him, its extremely important to him(55% of
respondents think its very important).
33 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
34 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
GRAPH-4
TABLE 5: SHOWING THE IMPORTANCE OF THE SIZE
OF THE CHEQUE BOOK ACCORDING TO THE
CUSTOMERS
IMPORTANCE NO. OF RESPONDENTS PERCENTAGE
VERY IMPORTANT 20 20%
SOMEWHAT IMPORTANT 45 45%
NOT SO IMPORTANT 30 30%
NOT AT ALL IMPORTANT 5 5%
TOTAL 100 100%
ANALYSIS
The table shows that according to the 20% of the respondents its very
important that the cheque book size is appropriate,30% of the
respondents think its not so important, 5% of the respondents think its
not at all important while 45% of the respondents think its somewhat
important.
INFERENCE
Hence the table clearly shows that the majority of the respondents
think its somewhat important for the cheque book size to be
appropriate.
35 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
36 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
GRAPH-5
TABLE 6: SHOWING THE IMPORTANCE OF THE BANK TIMING ACCORDING TO THE
CUSTOMERS
IMPORTANCE NO.OF RESPONDENTS PERCENTAGE
VERY IMPORTANT 65 65%
SOMEWHAT IMPORTANT 20 20%
NOT SO IMPORTANT 15 15%
NOT AT ALL IMPORTANT 0 0%
TOTAL 100 100%
ANALYSIS
The above table relates that the 65% of the respondents think its
extremely important for the bank timing to be convenient,20% of the
respondents think its somewhat important,15% of the respondents think
its not so important while none of them think its not at all important.
INFERENCE
Table number 7 clearly shows that majority of the customers think that
its very important that the bank timings are convenient i.e. 65%
37 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
38 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
TABLE 7: SHOWING THE IMPORTANCE OF THE
( ZERO BALANCE SAVINGS ACCOUNTS ) FACILITY
ACCORDING TO THE CUSTOMERS
IMPORTANCE NO. OF
RESPONDENTS
PERCENTAGE
VERY IMPORTANT 80 80%
SOMEWHAT IMPORTANT 20 20%
NOT SO IMPORTANT 0 0%
NOT AT ALL IMPORTANT 0 0%
TOTAL 100 100%
ANALYSIS
According to the table above none of the respondents think its not at
all or not so important that the ZERO BANLANCE CURRENT ACCOUNT
SHOULD be provided, while 80% of the respondents think its very
important and 20% of the respondents think its somewhat important.
INFERENCE
39 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
Hence the table clearly shows that the majority of the customers think
its very important that the ZERO BALANCE SAVINGS ACCOUNT facility
should be provided that is 80%.
40 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
GRAPH-7
TABLE 8: SHOWING THE IMPORTANCE OF
TRANSACTION TIMING IN HDFC BANK ACCORDING
TO CUSTOMRES
VARAIBLES RESPONDENTS PERCENTAGE
HIGHLY SATISFIED 10 10%
SATISFIED 62 62%
NEUTRAL 23 23%
DISSATISFIED 5 5%
HIGHLY DISSATISFIED 0 0%
100 100%
ANALYSIS
From the above table , it can be analyzed that out of 100 respondents
10% only are highly satisfied with the Transaction timing of the Bank ,
62% of them are satisfied , 23% of them are on the neutral side .
Moreover 5% of them are dissatisfied and none are highly dissatisfied.
INFERENCE
41 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
Therefore, it can be inferred that almost 5% of the respondents are not
happy with the time taken for transaction . This indicates that the
customers are not satisfied with the speed of the transaction .
42 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
GRAPH-8
TABLE 9: SHOWING THE IMPORTANCE OF
CUSTOMER CARE IN HDFC BANK ACCORDING TO
CUSTOMRES
VARAIBLES RESPONDENTS PERCENTAGE
HIGHLY SATISFIED 12 12%
SATISFIED 63 63%
NEUTRAL 21 21%
DISSATISFIED 4 4%
HIGHLY DISSATISFIED 0 0%
TOTAL 100 100%
ANALYSIS
The above table shows that out of 100 respondents 12% are highly
satisfied with the Customer Care of the HDFC Bank, 63% of them are
satisfied and 21% are neutral, moreover 4% of them are dissatisfied and
none of them are highly dissatisfied.
INFERENCE
43 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
In today’s world customer care is one of the most important criteria as
it helps the organization to retain their or add market share . Therefore ,
HDFC should work towards the 4% dissatisfied customers either by
training the employees or making the procedure customer friendly
44 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
GRAPH-9
TABLE 10: SHOWING THE IMPORTANCE OF HDFC
BANK SERVICE ACCORDING TO CUSTOMRES
VARAIBLES RESPONDENTS PERCENTAGE
EXCEPTIONALY SATISFIED 54 54%
SATISFIED 40 40%
NEUTRAL 6 6%
ANALYSIS
The above table shows that out of 100 respondents 54% are
exceptionaly satisfied with the Service of the HDFC Bank, 40% of
them are satisfied and 6% are neutral.
INFERENCE
In today’s world Bank Service is one of the most important criteria as it
helps the organization to retain their or add market share . Therefore ,
45 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
HDFC should work towards the 6% neutral customers either by training
the employees or making the procedure customer friendly
46 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
4.5 SUMMARY OF FINDINGS
Most of the customers of the bank are satisfied, but there is a minority
of customers who are still looking for improvement in this aspect of
service area as well in the field of working environment.
One area of strength of the bank which it can really boast off as most of
the customers are satisfied when it comes to customer care.
Overall the result of survey has shown a positive sign for the
overall services from where on they can increase their customer
base with the exception of a few dissatisfied customers which
needs to be looked after.
The bank has caused a lot of inconvenience to the customers
regarding its banking hours as shown from the result of the
survey. Flexible banking hours should be achieved to attain higher
customer satisfaction again lot of them are even satisfied .
There is a mixed response when it comes to transaction time. A certain
section or respondents seem to be satisfied but a substantial number
of customers are looking for faster transaction time.
47 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
V.1 SUMMARY OF LEARNIG EXPERIENCE.
I went through a good learning practice in my HDFC Bank for the past eight
months which has developed me to heights of understanding the customers
mind as well their taste and preferences in the field of services sector.
The uncertain world or market structure existing in India has very typical way
of expectation when it comes to private bank and the banks have realized
their needs and desires and working towards satisfying their requirements and
my bank is also in its run for customer satisfaction
The working environment was excellent which enabled me to learn the
products and services features as well as the internal aspects of management
level in my bank.
This project has opened up the new window of learning, which enables me
into the clear understanding of corporate world
The proper understanding of customers is must when it comes to service
industry and that exactly what I went through in this period of management
training period.
48 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
V.2 CONCLUSIONS AND RECOMMENDATIONS.
CONCLUSION
Hence, I conclude by understanding that marketing concepts is essentially
about the few things which contribute to the banks success:
The bank cannot exist without customer.
The purpose of a bank is to create, win and keep a customer. The
customer is and should be the central focus of everything the bank
does.
Ultimate aim of a bank is to deliver satisfaction to the customers.
Customer satisfaction is affected by the performance of all the
personnel of the bank.
It is also a way of organizing the bank. The starting point for the organizational
design should be the customer and the bank should ensure that the services
49 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
are performed and delivered in the most effective way. Service facility should
also be designed for customer convenience.
RECOMMENDATIONS
The environment of the bank can be made more customers friendly and the
working of the bank should be more organized and efficient by training the
employees of the bank.
2. Improving customer care facilities by providing 24 hours banking facilities
more effective.
3. More number of CURRENT ACCOUNTS With different features are looked
forward from public.
4. Proper and general insturuction about the maintenance and working of
current account and its benefits should be made clearer.
5. The banking hours should be more customers friendly it should close little
later in the evening.
50 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
6. The banking process needs to be more systematic so that the transaction
time can be reduced.
7. There should be more branches especially in smaller towns and
cities .
8. Special schemes should be provided for smaller retail shops as well new
package of offers and discounts should be provided for high network people
and senior citizens .
ANNEXURE
5.4 QUESTIONNAIRE5.4 QUESTIONNAIRE
1. Name ______________________________________
2. Age
20-30
30-40
40<
3. Gender
Male
Female
51 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
4. Marital Status
Married
Single
5. Income Level
<Rs.10, 000
Rs.10, 000-Rs.20, 000
>Rs.20, 000
6. How important is it for an employee to greet you with a smile?
Very important
Somewhat important
Not so important
Not at all important
7. How important is the size of cheque book to you?
Very important
Somewhat important
Not so important
52 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
Not at all important
8. How important are the bank timings according to you?
Very important
Somewhat important
Not so important
Not at all important
9. How important are the ZERO BALANCE CURRENT ACCOUNT facility provided
by HDFC to you?
Very important
Somewhat important
Not so important
Not at all important
10. What is your level of satisfaction with respect to the transaction timing of the
bank?
Highly satisfied
Satisfied
53 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
Neutral
Dissatisfied
Highly dissatisfied
11. What is your level of satisfaction with respect to customer care measures
undertaken by the bank?
Highly satisfied
Satisfied
Neutral
Dissatisfied
Highly dissatisfied
12. What is your level of satisfaction with respect to the quality of overall service
provided by the bank?
Highly satisfied
Satisfied
Neutral
Dissatisfied
Highly dissatisfied
54 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
13. What is your level of satisfaction with respect to special schemes offered by the
bank?
Highly satisfied
Satisfied
Neutral
Dissatisfied
Highly dissatisfied
14. What is your level of satisfaction with respect to the response time for grievance
handling?
Highly satisfied
Satisfied
Neutral
Dissatisfied
Highly dissatisfied
15. What is your level of satisfaction with respect to the cheque book facility provided
by the bank?
55 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
Highly satisfied
Satisfied
Neutral
Dissatisfied
Highly dissatisfied
16. What is your level of satisfaction with respect to flexibility of operation?
Highly satisfied
Satisfied
Neutral
Dissatisfied
Highly dissatisfied
56 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
BIBLIOGRAPHY
BOOKS AND MAGAZINES
1) Tull S. Donald et al Hawkins I. Del --Marketing Research Measurement &
Methods 6th edition
Published by Asoke K. Ghosh , Prentice-Hall of India pvt. Ltd.
2) Cooper R. Donald et al Schindler S.Pamela –Business Research Method logy 2006 edition
Published by TATA McGraw HILL Publishing Company limited
India Today
Business world, Economic Times, Business world , Money regulator and Business
Line
NEWSPAPERS
The Times of India
The Economic Times
Business Standard
INTERNET
www.hdfcbank.com
www.google.com
57 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES