Ankur hdfc bank 2


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report on customer satisfaction level in hdfc bank

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Ankur hdfc bank 2

  1. 1. ABSTRACTBanking in India has changed with time, it has seen a revolution and it has been growing. Indiahas experienced tremendous reform in financial and banking sector. The jump of economy fromthe manufacturer industry, which used to be the most revenue generating industry, to theservice industry has seen the makeover of the banking sector. The banking sector is one of thelargest service providing sectors in India.These services are of utmost importance to the customers as it takes care of their financialneeds, in fact even maintain them. HDFC bank was among the few private banks to havestarted their operations in 1994 after the government of India allowed new private banks toemerge in Indian banking sector. Housing development and Finance Corporation of India hasbeen credited with being one of the best financial bank in India with the track record of givingthe best financial advice to its customers and offering the best products and services in bankingarea.Due to its impeccable service offered to the customer as per their demand and convenience,HDFC bank has become one of the leading banks in India offering customer service. In factcustomers credit it for being one of the finest in customer service leading to easy andconvenient banking. With its experience in the financial markets, a strong market reputation,large shareholder base and unique consumer franchise, HDFC has positioned itself as beingthe bank that cares for the customers.HDFC Bank provides a variety of wholesale, retail, and depository financial services throughmore than 1,400 branches and some 3,000 ATMs throughout India. Established by the HousingDevelopment Finance Corporation in 1994, the bank offers deposit accounts, loans, creditcards, insurance, investments, and related services. HDFC Bank targets individual customers inthe middle and upper-class, as well as trusts, small businesses.1|Page
  2. 2. INTRODUCTION:HDFC bank is a commercial bank of India, promoted by the housing development financecorporation, a premier housing finance company of India. The company headquarters aresituated in Mumbai and has around all the branches in 528 cities which are all linked on anonline real- time basis. HDFC bank is a type of public company and was founded by Mr. DeepakParekh.The bank has approximately total assets of INR 1006.82 billion. For the fiscal year 2008-09, thebank has reported net profit of Rs.2, 244.9 crore, up 41% from the previous fiscal. Total annualearnings of the bank increased by 58% reaching at Rs.19, 622.8 crore in 2008-09. In amilestone transaction in the Indian banking industry, Times Bank Limited (promoted by Bennett,Coleman & Co. / Times Group) was merged with HDFC Bank Ltd., in 2000. This was the firstmerger of two private banks in India. As per the scheme of amalgamation approved by theshareholders of both banks and the Reserve Bank of India, shareholders of Times Bankreceived 1 share of HDFC Bank for every 5.75 shares of Times Bank.In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total branches to more than1,000. The amalgamated bank emerged with a strong deposit base of around Rs. 1, 22,000crore and net advances of around Rs. 89,000 crore. The balance sheet size of the combinedentity is over Rs. 1, 63,000 crore. The amalgamation added significant value to HDFC Bank interms of increased branch network, geographic reach, and customer base, and a bigger pool ofskilled manpower. The mergers can be termed as a quest for growth in the Indian bankingenvironment.Customer Service Committee:Committee monitors the quality of services rendered to the customers and also ensuresimplementation of directives received from RBI in this regard. The terms of reference of theCommittee are to formulate comprehensive deposit policy incorporating the issues arising out ofdeath of a depositor for operations of his account, the product approval process, and the annualsurvey of depositor satisfaction and the triennial audit of such services. The Committee met 4(four) times during the year.2|Page
  3. 3. Progress:The Bank’s staffing needs continued to increase during the year particularly in the retail bankingbusinesses in line with the business growth. Total number of employees increased from14878 as of March31, 2006 to 21477 as of March 31, 2007. The Bank continues to focus ontraining its employees on a continuing basis, both on the job and through training programsconducted by internal and external faculty. The Bank has consistently believed that broaderemployee ownership of its shares has a positive impact on its performance and employeemotivation. The Bank’s employee stock option scheme so far covers around 9000 employees.HDFC Bank has demonstrated very consistent delivery of performance over the last so manyyears and has already notched up its place as the one of the largest private sector bank in thecountry and the growth momentum is expected to continue. The bank has stepped up to retailcustomer acquisition with deposit accounts increasing from 6.2 million to 8.7 million and totalcards issued (debit and credit cards) increasing from 7 million to 9.2 million (approx). Not onlythe retail banking of HDFC is blooming day by day but its services offered in wholesale bankinghas also given tremendous growth to the bank. The online banking system i.e. net banking hasbeen an eye attraction for the customers as it gives them fast and convenient banking. Asalready mentioned about its growing distribution network the bank is continually planning forexpansion of the branches of the bank. Customers are efficiently serviced through telephonebanking also. The Banks expansion plans take into account the need to have a presence in allmajor industrial and commercial centers where its corporate customers are located as well asthe need to build a strong retail customer base for both deposits and loan products. Being aclearing/settlement bank to various leading stock exchanges, the Bank has branches in thecenters where the NSE/BSE has a strong and active member base. With the excellentdistribution network HDFC aspires to have as strong position in the market and with thecustomers.HDFC bank has always aspired to become a world class bank and has been trying to adopt anefficient and effective approach to understand the ever changing customer demands and tooffer them superior service. HDFC thus has been marketing itself with the tagline saying “weunderstand your world”.3|Page
  4. 4. Business strategy:HDFC BANK mission is to be “a World Class Indian Bank. The objective is to build soundcustomer franchises across distinct businesses so as to be a preferred provider of bankingservices for target retail and wholesale customer segments, and to achieve a healthy growth inprofitability, consistent with the Banks risk appetite. Continue to develop new product andtechnology is the main business strategy of the bank. Maintain good relation with the customersis the main and prime objective of the bank. Increase market share in India’s expandingbanking and financial services industry by following a disciplined growth strategyfocusing on quality and not on quantity and delivering high quality customer service.a) HDFC bank is a leader among Indian banks in the use of technologySince the bank’s inception, it has made substantial investments in technology platform andsystems. Bank has built multiple distribution channels, including an electronically linked branchnetwork, automated telephone banking, Internet banking and banking by mobile phone, to offercustomers convenient access to our products. Technology platform has driven the developmentof innovative products and reduced operating costs.b) HDFC bank delivers high quality service with superior executionBank tries to deliver efficient service with rapid response time. Bank’s focus on personalizedservice tries to draws customers to the products and increases existing customer loyalty.c) HDFC offer a wide range of productsWhether in retail or wholesale banking, the bank tries to be a “one-stop shop” for theCustomers’ banking needs. The wide range of products creates multiple cross-sellingopportunities for bank and improves customer retention rates.d) HDFC claims to have an experienced management teamAccording to HDFC, many of the members of senior management team who have been with thebank; since inception seem to have substantial experience in multinational banking.4|Page
  5. 5. The HDFC bank provides the following benefits to its customer: 1. It is the first approach to add and mix the customers religious beliefs and cultural values with other quality dimensions. 2. It links with customer’s satisfaction and service counter. 3. It provides the customer those types of services which they want. 4. The banks send various information which may be helpful for its customer.Statement of the problem:The study aims to examine the satisfaction level of customer in HDFC bank.PURPOSE OF STUDY:What types of services are there which affects the customer satisfaction?To determine factors that influences services on the basis of customer needs?Does the service is responsible for change in behaviour of the customer’s?ASSUMPTIONS OF THE STUDY:It is assumed that all customers may honestly complete the questionnaires. To explaincustomer satisfaction better, it may be important to look at additional factors or seekbetter measures of the constructs. Today’s time banking industry is in a boom period.There are various banks available to them so people can change their mind to shiftthem to some other bank who will give them more benefits and good service. Serviceaffects a lot to these banking sectors.5|Page
  6. 6. Literature review:The fundamental aim of studying the customer satisfaction towards services offered by HDFCbank is like, to know what a customer feels about the services offered by the bank ?The main motivebehind this is to measure the satisfaction level of the customers i.e. how much a customer issatisfied? Previous studies have identified the benefits that customer retention delivers to anorganization.For example, the longer a customer stays with a bank the more utility the customer generates. This is anoutcome of a number of factors relating to the time the customer spends with theorganization. These include the higher initial costs of introducing and attracting a new customer,increases in both the value and number of purchases, the customers better understanding of theorganization, and positive word-of mouth promotion.A part from the benefits that the longevity of customers brings, research findings also suggest that thecosts of customer retention activities are less than the costs of acquiring new customers. Thefinancial implications of attracting new customers may be five times as costly as keeping existingcustomers.However, maintaining high levels of satisfaction will not, by itself, ensure customer loyalty. Bankslose satisfied customers who have moved, retired, or no longer need certain services. As a consequence,retaining customers becomes a priority. Previous research shows, however, that longevity doesnot automatically leads to profitability.References for literature review:www.canberra.edufaculty.mwsu.eduwww.cssp.orgwww.studymode.com6|Page
  7. 7. Branches of HDFC bank in pune : Branch Bank Branch Address Contact CodeHDFC PUNE - AUNDH 000052 93, Rajyog Creations, Anand Tel: 020-25893528, Fax: 020-25885592Bank Park, Off ITI Road, Aundh, Pune - 411007, Maharashtra City: PUNE District: PUNE State: MAHARASHTRAHDFC PUNE - 000103 1182 / 13, Bu Bhandari Tel: 020 4120 0977, Fax: 020-25539080Bank FERGUSSON Showroom, , Opposite Hotel COLLEGE LalitMahal, , F C Road, Pune - ROAD 411005, Maharashtra City: PUNE District: PUNE State: MAHARASHTRAHDFC PUNE - 000223 CaspBhavan, , 132 / 2 - Plot No. Tel: 020-25862356, Fax: 020-25862354Bank PASHAN 3, , Pashan - Baner Link Road, Pune - 411021, Maharashtra City: PUNE District: PUNE State: MAHARASHTRAHDFC PIMPRI - PUNE 000437 Kamala Crossroads, Unit Nos. 1 Tel: 020-46706601,Bank To 4 & 26 To 29, Wing - A, , 46706603/46706604/46706605/46706606/46 FinolexChowk, Opposite Pcmc 706607/46706608, Fax: 020-46706602 Office, Pimpri, Mumbai - Pune Road, Pune - 411018, Maharashtra City: PUNE District: PUNE State: MAHARASHTRAHDFC PUNE - KIRKEE 000447 Shop No 1 - 4, Royal Residency, Tel: 020 25690754, Fax: 020 25690755Bank (KHADKI) 48 Aundh Road, Next To Ganesh Temple, Khadki, Pune - 411020, Maharashtra City: PUNE District: PUNE State: MAHARASHTRAHDFC PUNE - 000486 Destination Centre, Upper Tel: 020-64005487/89, Fax: 020-26823022Bank HADAPSAR - Ground Floor, Magarpatta City MAGARPATTA Branch, Hadapsar, Pune - 411013, Maharashtra City: PUNE District: PUNE State: MAHARASHTRA 7|Page
  8. 8. RESEARCH METHODOLOGY:Objective of the study: To find out the level of satisfaction of the customers from the service quality offered by the HDFC bank. To identify the behaviour of the service given by staff. Does there is any effect of services on customer behaviour.Data source:Primary data:The primary data was collected by a means of survey. Questionnaires were preparedafter a telephonic interview, by which it was analyze that why they more preferred theservices of HDFC bank. The questionnaires were of 10 questions which tell us why theyprefer the HDFC bank. The response of the customer is recorded on a grade scale foreach question (where 1=strongly disagree, 2=disagree 3=no opinion 4=agree and5=strongly agree).Secondary data:In order to have a proper understanding of the service quality of bank a depth study wasdone from the various sources such as books, a lot data is also collected from officialwebsites of the banks from various search engines like Google, yahoo search Likert scale was used for the purpose of survey. Used Minitab software to analyze the data. Sampling units: customers of HDFC bank, focus study. Sample technique: random sampling Contact method: online survey, telephonic interview.8|Page
  9. 9. Data analysis:To analyze the questions I have used factor analysis so that the questions which affectthe services can be analyzed. I have also used mean, median, mode, standarddeviation.Descriptive Statistics: Response, Response, The bank per, Employees in, ... N forVariable Mean CoefVar Median Mode ModeThe bank performs the se 3.600 22.60 4.000 4 18Employees in the bank gi 3.433 22.54 4.000 4 15The bank gives you indiv 3.3 22.72 3.000 3 20This bank does not make 3.233 21.00 3.000 3 21Are you satisfied with y 3.467 22.39 4.000 4 15How would you describe y 3.80 17.48 4.000 4 22How would you describe y 3.467 21.07 3.000 3 17How would you rate produ 3.367 26.43 3.000 3 15how you will rate the ex 3.533 19.29 4.000 4 16What do you feel about o 3.900 18.26 4.000 4 18Factor Analysis: The bank per, Employees in, The bank giv, This bank do, Are yoPrincipal Component Factor Analysis of the Correlation MatrixUnrotated Factor Loadings and CommunalitiesVariable Factor1 Factor2 CommunalityThe bank performs the service r 0.895 0.070 0.806Employees in the bank give you 0.880 0.132 0.792The bank gives you individual a 0.525 -0.627 0.668This bank does not make its cus 0.517 0.455 0.474Are you satisfied with your fin 0.638 -0.327 0.514How would you describe your vie 0.643 0.241 0.472How would you describe your v_1 0.623 -0.290 0.472How would you rate product offe 0.238 0.865 0.662how you will rate the experienc 0.858 -0.012 0.736What do you feel about overall 0.789 0.085 0.630Variance 4.7034 1.3213 6.0247% Var 0.470 0.132 0.6029|Page
  10. 10. Interpretation: From factor 1: From factor analysis result, we can say that first time service, staff service, prompt service increases the customer satisfaction. From factor 2: From this factor we can say that product also helps in increasing the customer satisfaction. Factor Score Coefficients Variable Factor1 Factor2 The bank performs the service r 0.190 0.053 Employees in the bank give you 0.187 0.100 The bank gives you individual a 0.112 -0.474 This bank does not make its cus 0.110 0.344 Are you satisfied with your fin 0.136 -0.248 How would you describe your vie 0.137 0.182 How would you describe your v_1 0.132 -0.220 How would you rate product offe 0.029 0.504 how you will rate the experienc 0.182 -0.009 What do you feel about overall 0.168 0.064S cr e e P l o t o f T he b a n k p e r f o r m s the s e r v i c e r , . . . , W h a t d o y o u f e e l a b o u t o v e r a l l 5 4 3 Eige nv a lue 2 1 0 1 2 3 4 5 6 7 8 9 10 Fa c t o r Nu mb e r 10 | P a g e
  11. 11. QUESTIONNAIRE ANALYSIS:Which age group do you belong to? Age category frequency Percentage 18-25 years 6 20% 25-35 years 15 50% 35-45 years 5 16.6% 45 years and above 4 13.3% Total 30 100 Age Category 13.3% 20% 18-25 years 16.6% 25-35 years 35-45 years 45 years and above 50%The bank performs the service right the first time? Frequency PercentageStrongly disagree 0 0%Disagree 4 13%Neutral 6 20%Agree 18 60%Strongly agree 2 7%11 | P a g e
  12. 12. Employees in the bank give you prompt service? Frequency PercentageStrongly disagree 0 0%Disagree 4 13%Neutral 9 15%Agree 16 33%Strongly agree 1 3%The bank gives you individual attention? Frequency PercentageStrongly disagree 0 0%Disagree 2 7%Neutral 20 67%Agree 5 17%Strongly agree 3 10%12 | P a g e
  13. 13. This bank does not make its customers stand in a queue for a long time? Frequency PercentageStrongly disagree 1 3%Disagree 0 0%Neutral 21 70%Agree 7 24%Strongly agree 1 3%Are you satisfied with your financial transactions with the bank? Frequency PercentageStrongly disagree 1 3%Disagree 1 3%neutral 12 40%Agree 15 50%Strongly agree 1 3%13 | P a g e
  14. 14. How would you describe your views about Internet Banking services? Frequency PercentageStrongly disagree 0 0%Disagree 2 7%neutral 4 13%Agree 22 73%Strongly agree 2 7%How would you describe your views about ATM Banking services? Frequency PercentageStrongly disagree 0 0%Disagree 1 3%neutral 17 57%Agree 9 30%Strongly agree 3 10%14 | P a g e
  15. 15. How would you rate product offered HDFC Bank than other? Frequency PercentageStrongly disagree 2 7%Disagree 0 0%neutral 15 50%Agree 11 37%Strongly agree 2 7%How you will rate the experience with the staff of HDFC bank? Frequency PercentageStrongly disagree 0 0%Disagree 2 7%Neutral 11 38%Agree 15 52%Strongly agree 1 3%15 | P a g e
  16. 16. What do you feel about overall service quality of HDFC bank? Frequency PercentageStrongly disagree 0 0%Disagree 1 3%neutral 6 20%Agree 18 60%Strongly agree 5 17%Findings:When the customer comes for the first time to their bank they give a proper attention tocustomer, so that the customer can be fully satisfied. There is a huge role of staff in thesatisfaction of customer as the staff provides them good service. Customer also feelssafe while doing any transaction with the bank.Conclusions: They should more focus to their first time customer. The products are also giving a huge satisfaction to customer, so they should provide that product which is more in favour of them.According to questionnaire:  Internet banking facilities was more preferable by the customer.  Overall service quality of the bank is also good.  Customer feels safe while doing transaction with the bank.16 | P a g e
  17. 17. Recommendations:Staff should be encouraged to present relevant options to banking customers, so thosecustomers become more comfortable. Some customers are there who like to go to theirnearby branch and sometimes they become their regular customer. So the staff shouldknow the name of the people and they should identify their basic service requirements.During the telephonic interview some people came out with technology that governmentbanks are not having those technology which private bank is having. Thereforetechnology services are also preferred by | P a g e