Project report winter

1. 1.1 INTRODUCTION TO THE INDUSTRY
The Indian economy is emerging as a one of the strongest economy of the world with the
GDP growth of more than 8 % every year. A strongest banking industry is important in
every country and can have a significant affect in supporting economic development through
efficient financial services. Banking sector play a vital role in growth and development of
Indian economy. After liberalization the banking industry in India under gone major
changes. The process of liberalization and globalization has strongly influenced the Indian
banking sector. A stable and efficient banking sector is an essential precondition to increase
the economic level of a country. Liberalization policy introduced in the banking sector in
India led to consolidated competition, efficient allocation of resources and introducing
innovative methods for mobilizing of saving. The ability of banks to analyze its financial
position for improving its competitive position in the market place. Most banks in India are
currently focusing an expanding their service network. A growing Indian economy,
expanding their various segments. After the recommendations of Narshinham Committee
report with the entry of many private players. Indian banking industry has transformed into a
customer oriented market. It now consists of multiple products and customer groups and
various channels of distribution. It is well known fact that an effective and efficient banking
system is important for the long-run growth and development of the economy. So, there is
needed to make a comprehensive study into performance of banks in India.
A Banking Sector performs three primary functions in economy, the operation of the
payment system, the mobilization of savings and the allocation of saving to investment
products.1 Banking industry has been changed after reforms process.
The Government has taken this sector in a basic priority and this service sector has been
changed according to the need of present days. Banking sector reforms in India Strive to
Banking industry has been changed after reforms process. The Government has taken this
sector in a basic priority and this service sector has been India Strive to Banking industry has
been changed after reforms process.
The Government has taken this sector in a basic priority and this service sector has been
changed according to the need of present days. Banking sector reforms in India Strive to
increase efficiency and profitability of the banking institutions as well as brought the
existing banking institutions face to face with global competition in globalization process.
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2. Origin of the Word Bank’s:
There seems no uniformity amongst the economist about the origin of the word ''Bank''.
According to some authors the word ''Bank'', itself is derived from the word ''Bancus'' or
''Banque'' that is a bench. The early bankers, the Jews in Lombardy, transacted their business
on benches in the market place, when a banker failed, his 'Banco' was broken up by the
people; it was called 'Bankrupt'. This etymology is however, ridiculed by mcleod on the
ground that ''The Italian Money changers as such were never called Banchier in the middle
ages''.
It is generally said that the word "Bank" has been originated in Italy. In the middle of 12th
century there was a great financial crisis in Italy due to war. To meet the war expenses, the
government of that period a forced subscribed loan on citizens of the country at the interest
of 5% per annum. Such loans were known as 'Compare', 'minto' etc. The most common
name was "Monte'. In Germany the word 'Monte was named as 'Bank' or 'Banke'. According
to some writers, the word 'Bank' has been derived from the word bank.
It is also said that the word 'bank' has been derived from the word 'Banco' which means a
bench. The Jews money lenders in Italy used to transact their business sitting on benches at
different market places. When any of them used to fail to meet his obligations, his 'Banco' or
'banch' or bench would be broken by the angry creditors. The word 'Bankrupt' seems to be
originated from broken Banco. Since, the banking system has been originated from money
leading business; it is rightly argued that the word 'Bank' has been originated from the word
"Banco''. Whatever be the origin of the word 'Bank' as Professor Ram Chandra Rao says, It
would trace the history of banking in Europe from the middle Ages.
Today the word bank is used as a comprehensive term for a number of institutions carrying
on certain kinds of financial business. In practice, the word 'Bank' means which borrows
money from one class of people and again lends money to another class of people for
interest or profit.
Actually meaning of bank is not specifies in any regulation or act. In India, different people
have different type of meaning for bank. Normal salary earner knows means of bank that it
is a saving institution, for current account holder or businessman knows bank as a financial
institutions and many other. Bank is not for profit making, it creates saving activity in salary
earner.
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3. Corporate Details
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.
Incorporated in August 1994 as HDFC Bank Limited, as of December 31, 2006, the bank
had a India network of 684 branches in 316 cities in India and over 1663 ATM's.
Meaning of Bank:
A Bank is an institution which accepts deposits from the general public and extends loans to
the households, the firms and the government. Banks are those institutions which operate in
money. Thus, they are money traders, with the process of development functions of banks
are also increasing and diversifying now, the banks are not nearly the traders of money, they
also create credit. Their activities are increasing and diversifying. Hence it is very difficult to
give a universally acceptable definition of bank. "Banking business" means the business of
receiving money on current or deposit account, paying and collecting cheques drawn by or
paid in by customers, the making of advances to customers, and includes such other business
as the Authority may prescribe for the purposes of this Act''.
Definitions of Bank:
Indian Banking Regulation act 1949 section 5 (1) (b) of the banking Regulation Act 1949
Banking is defined as.
“Accepting for the purpose of the landing of investment of deposits of money
from public repayable on demand or other wise and withdraw able by cheques, draft, order
or otherwise”.
Bank means a bench or table for changing money.
-Greek History
Bank is an establishment for custody of money received from or on Behalf of
its customers. Its essential duty is to pay their drafts unit. Its profits arise from
the use of the money left employed them.
-Oxford Dictionary
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4. Banking means “Accepting deposits for the purpose of lending or Investing of deposits of
money from the public, repayable on demand or otherwise and withdraw by cheque, draft or
otherwise”.
-Banking Companies (Regulation) Act,1949
A banker is defined as a person who carries on the business of banking, which is specified as
conducting current accounts for his customers, paying cheques drawn on him, and collecting
cheques for his customers.
- English common law
“Banking in the most general sense,is meant the business of receiving, conserving and
utilising the funds of community or of any special section of it”.
-By H.Wills & J.Bogan
“A banker of bank is a person, a firm, or a company having a place of business where credits
are opened by deposits or collection of money or currency or where money is advanced and
waned”.
-By Findlay Sheras
ORIGIN OF WORD BANK:
The origin of the world bank is shrouded in mystery. According to one view point the Italian
business house carrying on crude from of being banking were called banchi bancheri.
According to another view point banking is derived from German word “Branck” which
means help heap or mound. In England, the issue of paper money by the government was
referred to as a raising a bank.
ORIGIN OF BANKING:
Its origin in the simplest form can be traced to the origin of an authentic history. After
recognizing the benefit of money as a medium of exchange, the importance of banking was
developed as it provides the safer place to store the money. This safe place ultimately
evolved in to financial institutions that accepts deposits and make loans i.e., modern
commercial banks.
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5. BANKING INDUSTRY
Introduction to Indian Banking System
History of Banking in India
Without a sound and effective banking system in India it cannot have a healthy economy.
The banking system of India should not only be hassle free but it should be able to meet new
challenges posed by the technology and any other external and internal factors. For the past
three decades India's banking system has several outstanding achievements to its credit. The
most striking is its extensive reach. It is no longer confined to only metropolitans or
cosmopolitans in India. In fact, Indian banking system has reached even to the remote
corners of the country. This is one of the main reasons of India's growth process. The
government's regular policy for Indian bank since 1969 has paid rich dividends with the
nationalization of 14 major private banks of India Not long ago, an account holder had to
wait for hours at the bank counters for getting a draft or for withdrawing his own money.
Today, he has a choice. Gone are days when the most efficient bank transferred money from
one branch to other in two days. Now it is simple as instant messaging or dials a pizza.
Money has become the order of the day. The first bank in India, though conservative, was
established in 1786. From 1786 till today, the journey of Indian Banking System can be
segregated into three distinct phases. They are as mentioned below:
➢ Early phase from 1786 to 1969 of Indian Banks
➢ Nationalization of Indian Banks and up to 1991 prior to Indian banking sector
Reforms.
➢ New phase of Indian Banking System with the advent of Indian Financial & Banking
Sector Reforms after 1991.
Deposits initially consisted of grain and later other goods including cattle, agricultural
implements, and eventually Precious metals such as gold, in the form of easy-to-carry
compressed plates. Temples and palaces were the safest places to store gold as they were
constantly attended and well built. As sacred places, temples presented an extra deterrent to
would-be thieves. There are extant records of loans from the 18th century BC in Babylon
that were made by temple priests/monks to merchants. By the time of Hammurabi`s Code,
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6. banking was well enough developed to justify the promulgation of laws governing banking
operations.
Ancient Greece holds further evidence of banking. Greek temples, as well as private and
civic entities, conducted financial transactions such as loans, deposits, currency exchange,
and validation of coinage. There is evidence too of credit, whereby in return for a payment
from a client, a moneylender in one Greek port would write a credit note for the client who
could "cash" the note in another City, saving the client the danger of carting coinage with
him on his journey. Pythius, who operated as a merchant banker throughout Asia Minor at
the beginning of the 5th century B.C., is the first individual banker of whom we have
records. Many of the early bankers in Greek city-states were ''metics'' or foreign residents.
The fourth century B.C. saw increased use of credit-based banking in the Mediterranean
world. In Egypt, from early times, grain had been used as a form Money in addition to
precious metals, and state granaries functioned as banks. When Egypt fell under the rule of a
Greek dynasty, the Ptolemies (33230 B.C.), the numerous scattered government granaries
were transformed into a network of grain banks, centralized in Alexandria where the main
accounts from all the state granary banks were recorded. This banking network functioned as
a trade credit system in which payments were affected by transfer from one account to
another without money passing.
To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and Phase
III.
Phase I
The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and
Bengal Bank. The East India Company established HDFC Bank(1809), Bank of Bombay
(1840) and Bank of Madras (1843) as independent units and called it Presidency Banks.
These three banks were amalgamated in 1920 and Imperial Bank of India was established
which started as private shareholders banks, mostly Europeans shareholders. In 1865
Allahabad Bank was established and first time exclusively by Indians, Punjab National Bank
Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, Bank of India,
Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore
were set up. Reserve Bank of India came in 1935.
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7. During the first phase the growth was very slow and banks also experienced periodic failures
between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline
the functioning and activities of commercial banks, the Government of India came up with
The Banking Companies Act, 1949 which was later changed to Banking Regulation Act
1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested
with extensive powers for the supervision of banking in India as the Central Banking
Authority.
During those day’s public has lesser confidence in the banks. As an aftermath deposit
mobilization was slow. Abreast of it the savings bank facility provided by the Postal
department was comparatively safer. Moreover, funds were largely given to traders.
Phase II
Government took major steps in this Indian Banking Sector Reform after independence. In
1955, it nationalized Imperial Bank of India with extensive banking facilities on a large scale
especially in rural and semi-urban areas. It formed State Bank of India to act as the principal
agent of RBI and to handle banking transactions of the Union and State Governments all
over the country. Seven banks forming subsidiary of State Bank of India was nationalized in
1960 on 19th July, 1969, major process of nationalization was carried out. It was the effort
of the then Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the
country were nationalized. Second phase of nationalization Indian Banking Sector Reform
was carried out in 1980 with seven more banks. This step brought 80% of the banking
segment in India under Government ownership. The following are the steps taken by the
Government of India to Regulate Banking Institutions in the Country:
 1949: Enactment of Banking Regulation Act.
 1955: Nationalization of State Bank of India.
 1959: Nationalization of HDFC BANK subsidiaries.
 1961: Insurance cover extended to deposits.
 1969: Nationalization of 14 major banks.
 1971: Creation of credit guarantee corporation.
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8.  1975: Creation of regional rural banks.
 1980: Nationalization of seven banks with deposits over 200 crores.
After the nationalization of banks, the branches of the public sector bank India rose to
approximately 800% in deposits and advances took a huge jump by 11,000%. Banking in the
sunshine of Government ownership gave the public implicit faith and immense confidence
about the sustainability of these institutions.
Phase III
This phase has introduced many more products and facilities in the banking sector in its
reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set
up by his name which worked for the liberalizations of banking practices. The country is
flooded with foreign banks and their ATM stations. Efforts are being put to give a
satisfactory service to customers. Phone banking and net banking is introduced. The entire
system became more convenient and swift. Time is given more importance than money. The
financial system of India has shown a great deal of resilience. It is sheltered from any crisis
triggered by any external macroeconomics shock as other East Asian Countries suffered.
This is all due to a flexible exchange rate regime, the foreign reserves are high, the capital
account is not yet fully convertible, and banks and their customers have limited foreign
exchange exposure
Banking system in India
The Indian banking can be broadly categorized into nationalized (government owned),
private banks and specialized banking institutions. The Reserve Bank of India acts a
centralized body monitoring any discrepancies and shortcoming in the system. Since the
nationalization of banks in 1969, the public sector banks or the nationalized banks have
acquired a place of prominence and has since then seen tremendous progress. The need to
become highly customer focused has forced the slow-moving public sector banks to adopt a
fast track approach. The unleashing of products and services through the net has galvanized
players at all levels of the banking and financial institutions market grid to look anew at their
existing portfolio offering. Conservative banking practices allowed Indian banks to be
insulated partially from the Asian currency crisis.Indian banks are now quoting al higher
valuation when compared to banks in other Asian countries (viz. Hong Kong, Singapore,
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9. Philippines etc.) that have major problems linked to huge Non Performing Assets (NPAs)
and payment defaults. Co-operative banks are nimble footed in approach and armed with
efficient branch networks focus primarily on the ‘high revenue’ niche retail segments.
The Indian banking has finally worked up to the competitive dynamics of the ‘new’ Indian
market and is addressing the relevant issues to take on the multifarious challenges of
globalization. Banks that employ IT solutions are perceived to be ‘futuristic’ and proactive
players capable of meeting the multifarious requirements of the large customers base.
Private banks have been fast on the uptake and are reorienting their strategies using the
internet as a medium The Internet has emerged as the new and challenging frontier of
marketing with the conventional physical world tenets being just as applicable like in any
other marketing medium. The Indian banking has come from a long way from being a sleepy
business institution to a highly proactive and dynamic entity. This transformation has been
largely brought about by the large dose of liberalization and economic reforms that allowed
banks to explore new business opportunities rather than generating revenues from
conventional streams (i.e. borrowing and lending). The banking in India is highly
fragmented with 30 banking units contributing to almost 50% of deposits and 60% of
advances. Indian nationalized banks (banks owned by the government) continue to be the
major lenders in the economy due to their sheer size and penetrative networks which assures
them high deposit mobilization. The Indian banking can be broadly categorized into
nationalized, private banks and specialized banking institutions.
The Reserve Bank of India act as a centralized body monitoring any discrepancies and
shortcoming in the system. It is the foremost monitoring body in the Indian financial sector.
The nationalized banks (i.e. government-owned banks) continue to dominate the Indian
banking arena. Industry estimates indicate that out of 274 commercial banks operating in
India, 223 banks are in the public sector and 51 are in the private sector. The private sector
bank grid also includes 24 foreign banks that have started their operations here. Under the
ambit of the nationalized banks come the specialized banking institutions. These co-
operatives, rural banks focus on areas of agriculture, rural development etc., unlike
commercial banks these co-operative banks do not lend on the basis of a prime lending rate.
They also have various tax sops because of their holding pattern and lending structure and
hence have lower overheads. This enables them to give a marginally higher percentage on
savings deposits. Many of these cooperative banks diversified into specialized areas like car
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10. finance, housing loans, truck finance etc. in order to keep pace with their public sector and
private counterparts, the co-operative banks too have invested heavily in information
technology to offer high-end computerized banking services to its clients.
TYPES OF BANKS
Central Bank
The Reserve Bank Of India is the central Bank that is fully owned by the Government. It is
governed by a central board (headed by a Governor) appointed by the Central Government.
It issues guidelines for the functioning of all banks operating within the country.
Co-operative Sector
The co-operative sector is very much usefuI for rural people. The co-operative banking
sector is divided into the following categories.
a. State co-operative Banks
b. Central co-operative banks
c. Primary Agriculture Credit Societies
Development Banks/Financial Institutions
 IFCI
 IDBI
 ICICI
 IIBI
 SCICI Ltd.
 NABARD
 Export-Import Bank of India
 National Housing Bank
 Small Industries Development Bank of India.
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11. PRIVATE SECTOR BANKS
a. Old generation private banks
b. New generation private banks
c. Foreign banks operating in India
d. Scheduled co-operative banks
e. Non- scheduled banks
Private Sector Banks
1. HDFC Bank
2. ICICI Bank
3. Federal Bank
4. ING Vysya Bank
5. Axis Bank (formerly UTI Bank)
6. Yes Bank
7. Bank of Rajasthan
8. Bharat Overseas Bank
9. Catholic Syrian Bank
10. Centurion Bank of Punjab
11. City Union Bank
12. Development Credit Bank
13. Dhanalakshmi Bank
14. Ganesh Bank of Kurundwad
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12. Access Your Bank
 Net Banking
 Mobile Banking
 ATM
 Phone Banking
After nationalization of 14 commercial banks in 1969, no new private banks were licensed
by RBI in the country, though there was no legal bank on entry of private sector banks. The
Narsimha committee report of 1991, has envisaged a larger role for private sector banks. In
recognition of need to introduce greater competition with a view to achieving higher
productivity and efficiency of banking system. RBI issued few guidelines in Jan 1993 for
entry of private sector banks.
It prescribed of minimum paid up capital of Rs.100 crores for new bank and shares to be
listed at stock exchanges new bank after being granted license under Banking Regulation
Act, shall be registered as Public ltd. Company under companies Act 1956. Subsequently
nine new commercial banks have been granted license to start banking operations. The new
private sector banks have been very aggressive in business expansion and are also reporting
higher profit levels taking advantage of technical and skilled manpower. In certain areas,
these banks have been out crossed the other group of banks including foreign banks.
FUNCTIONS OF BANKS:
Primary Function
✔ Acceptance of Deposits
✔ Making loans & advances
✔ Loans
✔ Overdraft
✔ Cash Credit
✔ Discounting of bills of exchange
Secondary Functions
✔ Agency functions
✔ Collection of cheques and bills etc.
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13. ✔ Collection of interest and dividends.
✔ Making payment on behalf of customers
✔ Purchase and sale of securities
✔ Facility of transfer of funds
✔ To act as trustee and executor.
Utility Functions
✔ Safe custody of customers valuable articles and securities.
✔ Underwriting facility
✔ Issuing of traveller's cheque letter of credit.
✔ Facility of foreign exchanges.
✔ Providing trade information
✔ Provide information regarding credit worthiness of their customer.
Activities
HDFC Bank mainly provides three kinds of banking services:
✔ Personal Banking
✔ NRI Banking
✔ Wholesale Banking
GUIDELINES FOR PRIVATE SECTOR BANKS
The RBI issued guidelines regarding the formation and functioning of private sector banks in
January 1993. These guidelines are as follows: The banks shall be governed by the
provisions of The Reserve Bank of India Act, 1934 The Banking Regulations Act, and 1949
other relevant statuaries. Private sector banks are required to be registered as public limited
companies in India. The authority to grant a license lies with the RBI. The shares of banks
are required to be listed on stock exchanges. Preference will be given to those banks whose
headquarters are proposed to be located in a center that does not have headquarters of any
other bank. Maximum voting rights of an individual shareholder would be limited to 1% of
total voting rights. The new bank would not be allowed to have as its director any person
who is already a director in a banking company.
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14. Role of Reserve Bank of India:
The Reserve Bank of India (RBI) is the central banking system of India and controls the
monetary policy of the Rupee as well as currency reserves. The institution was established
on 1 April 1935 during the British Raj in accordance with the provisions of the Reserve
Bank of India Act, 1934 and plays an important part in the development strategy of the
government. It is a member bank of the Asian Clearing Union. The Reserve Bank of India
was constituted under the reserve Bank of India Act, 1934 to regulate the issue of bank notes
and the maintenance of reserves with a view to securing the monetary stability in India and
generally to operate the currency and credit system of the country to its advantage.
Function of Reserve Bank of India:
As a central bank, the Reserve Bank has significant powers and duties to perform. For
smooth and speedy progress of the Indian Financial System, it has to perform some
important tasks. Among others it includes maintaining monetary and financial stability, to
develop and maintain stable payment system, to promote and develop financial infrastructure
and to regulate or control the financial institutions.
[A] Traditional Function
Traditional functions are those functions which every central bank of each nation performs
all over the world. Basically these functions are in line with the objectives with which the
bank is set up. It includes fundamental functions of the Central Bank. They comprise the
following tasks.
[B] Developmental Function
Along with the routine traditional functions, central banks especially in the developing
country like India have to perform numerous functions. These functions are country specific
functions and can change according to the requirements of that country. The RBI has been
performing as a promoter of the financial system since it’s inspection.
[C] Supervisory Function
The reserve bank also performs many supervisory functions. It has authority to regulate and
administer the entire banking and financial system.
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15. 1.2 INTRODUCTION TO COMPANY
HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian
Bank". They realized that only a single-minded focus on product quality and service
excellence would help them to get there.
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of
over 495 branches spread over 218 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 centres 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 centres where the NSE/BSE have a strong and active member base. The
authorized capital of HDFC Bank is Rs.450 crore (Rs.4.5 billion). The paid-up capital is
Rs.309.9 crore (Rs.3.09 billion). The HDFC Group holds 22.2% of the bank’s equity and
about 19.5% of the equity is held by the ADS Depository. The Bank has made substantial
efforts and investments in acquiring the best technology available internationally, to build
the infrastructure for a world class bank.
Vision
To be customer driven best managed enterprise that enjoy market leadership in providing
housing related finance.
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16. Mission
The mission of HDFC is to become “A world class Indian bank”, bench marking themselves
against international standards and best practices in terms of product offering, technology,
service levels, risk management and audit and compliance.
Objective
The objective is to build some customer franchises across district business so as to be a
preferred provider of banking services for target retail and wholesale customer segments and
to achieve a healthy growth in profitability, consistence with the Bank’s risk appetite. The
bank is committed to maintain the highest level of ethical standards, professional integrity,
corporate governance and regulatory compliance. HDFC Bank's business philosophy is
based on 5 core values: Operational Excellence, Customer focus, Product leadership, People
and Sustainability.
Establishment
The establishment of the HDFC Bank marked the advent of limited liability, joint-stock
banking in India. So was the associated innovation in banking, viz. the decision to allow the
HDFC Bank to issue notes, which would be accepted for payment of public revenues within
a restricted geographical area. This right of note issue was very valuable not only for the
HDFC Bank but also its two siblings, the Banks of Bombay and Madras. It meant an
accretion to the capital of the banks, a capital on which the proprietors did not have to pay
any interest. The concept of deposit banking was also an innovation because the practice of
accepting money for safekeeping (and in some cases, even investment on behalf of the
clients) by the indigenous bankers had not spread as a general habit in most parts of India.
But, for a long time, and especially upto the time that the three presidency banks had a right
of note issue, bank notes and government balances made up the bulk of the investible
resources of the banks.
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17. HDFC Bank. one amongst the firsts of the new generation. tech-savvy commercial banks of
India. was set up in august 1995 after the Reserve Bank of India allowed setting up of Banks
in the private sector. The Bank was promoted by the Housing Development Finance
Corporation Limited. a premier housing finance company (set up in 1977) of India. Net
Profit for the year ended March 31, 2006 was up 30.8% to Rs 870.8 crores.
Branch network
Currently (2007). HDFC Bank has 583 branches located in 263 cities of India. and all
branches of the bank are linked on an online real-time basis. The bank offers many
innovative products & services to individuals, corporates, trusts. government’s, partnerships.
financial institutions. mutual funds. insurance companies. The bank also has over 1471
ATMs. In the next few month the number of branches and ATMs should go up substantially.
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18. Recognition
Over a decade of its operations. HDFC Bank has been recognized. rated and awarded by a
number of organizations. which includes: Best Domestic Bank in India in The Asset Triple
A Country Awards 2005, 2004 and 2003. “Company of the Year" Award in The Economic
Times Awards for Corporate Excellence 2004-05.
Asiamoney's Awards for Best Domestic Commercial Bank as well as Best Cash
Management Bank India in 2005. The Asian Banker Excellence in Retail Banking Risk
Management Award in India for 2004. Finance Asia “Best Bank India“ in 2005. "Best
Domestic Commercial Bank- India'' in 1999, 2000 ,2001 respectively and "Best Local Bank
-India" in 2002 and 2003 .
Business Today “Best Bank in India” in 2003 and 2004. “Best Overall Local/Domestic Bank
India” in the Corporate Cash Management Poll conducted by Asiamoney magazine. Selected
by Business World as "one of India's Most Respected Companies" as part of The Business
World Most Respected Company Awards 2004. In 2004, Forbes Global named HDFC Bank
in its listing of Best under a Billion, 100 Best Smaller Size Enterprises in Asia/Pacific and
Europe. In 2004, HDFC Bank won the award for
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19. "Operational Excellence in Retail Financial Services”-India as part of the Asian Banker
Awards 2003. In 2003, Forbes Global named HDFC Bank in its ranking of
“Best Under a Billion, 200 Best Small Companies for 2003”. The Financial Express named
HDFC Bank the “Best New Private Sector Bank 2003” in the FE-Ernst & Young Best Banks
Survey 2003.
Outlook Money named HDFC Bank the “Best Bank in the Private Sector” for the year 2003.
NASSCOM and economictimes.com have named HDFC Bank the ‘Best IT User in
Banking’ at the IT Users Awards 2003.
Euromoney magazine gave HDFC Bank the award for "Best Bank – India” in 1999, “Best
Domestic Bank” in India in 2000, and “Best Bank in India” in 2001 and 2002. Asiamoney
magazine has named us “Best Commercial Bank in India 2002” For its use of information
technology, HDFC Bank has been recognized as a “Computerworld Honors Laureate” and
awarded the 21st Century Achievement Award in 2002 for Finance, Insurance & Real Estate
category by Computerworld, Inc., USA. Its technology initiative has been included as a case
study in their online global archives. Business India named HDFC Bank “India’s Best Bank”
in 2000.
Profile
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 liberalisation 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.
Business focus
HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound
customer 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 Bank's business philosophy is based on four core values
Operational Excellence, Customer Focus, Product Leadership and People.
19

20. Corporate Details
The Housing Development Finance Corporation Limited (HDFC) was amongst the rim
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 RBl's liberalization of the Indian Banking Industry in I994.
Incorporated in August 1994 as HDFC Bank Limited . as of December 31,2006. the bank
had 3 India network of 684 branches in 316 cities in India and over 1663 ATM's.
Activities
HDFC Bank mainly provides three kinds of banking services:
✔ Personal Banking
✔ NRI Banking
✔ Wholesale Banking
The following are the products and services provided by the HDFC bank
 HDFC Bank provides loans like Personal Loans. Home Loans , Educational Loans,
Two Wheeler Loans. New car Loans. Used Car Loans, Overdraft Against Car,
Express Loans. etc.
 HDFC Bank provides Credit. Debit and Prepaid Cards to help you meet your
financial objectives.
 HDFC Bank provides facilities like Mutual Funds . Insurance . General & Health
Insurance, Bonds, Financial Planning, Knowledge Center, Equities & Derivatives.
Mudra Gold bar.
If you need to deal in foreign currency and keep tabs on exchange rates every now and then.
transfer funds to India. make payments etc., HDFC Bank has a range of products and
services that you can choose from to transact smoothly. efficiently and in a timely manner.
With HDFC Bank's payment services, you can bid goodbye to queues and paper work.
HDFC 's range of payment options make it easy to pay for a variety of utilities and services.
HDFC Bank has designed two programs to make banking easier for the customers and they
are
 HDFC Bank Preferred Programme
 HDFC Bank Classic Programme.
HDFC Bank offers Private Banking services to high net worth individuals and institutions.
HDFC Bank offers you quick, economical and convenient options to remit and transfer
funds to India.
20

21. Corporate Banking reflects HDFC Bank 's strengths in providing our corporate clients in
India, a wide array of commercial, transactional and electronic banking products. HDFC
Bank acts as an active medium between the government and the customers by means of
various services.
Performance
Profit & Loss Account : Year ended March 31, 2007
For the year ended March 31, 2007, the Bank earned total income of Rs.8,405.3 crores as
against Rs.5,599.3 crores in the corresponding period of the previous year. Net revenues (net
interest income plus other income) for the year ended March 31, 2007 were Rs.5,225.8
crores, up 42.4% over Rs.3,669.8 crores for the year ended March 31, 2006. Net Profit for
year ended March 31, 2007 was Rs.1,141.5 crores, up 31.1%, over the corresponding year
ended March 31, 2006.
Organization
Mr. Aditya Puri is the Managing Director of HDFC Bank.
Contact Details
Registered address: HDFC Bank House , Senapati Bapat Marg, Lower Parel, Mumbai - 400
013, India.
21

22. HDFC BANK AND CENTURION BANK OF PUNJAB MERGER
Merger of Centurion Bank of Punjab with HDFC Bank at share swap ratio of 1:29. The
Scheme of Amalgamation envisages a share exchange ratio of one share of HDFC Bank for
twenty nine shares of Centurion Bank of Punjab. The combined entity would have a
nationwide network of 1,148 branches (the largest amongst private sector Banks) a strong
deposit base of around Rs. 1,200 billion and net advances of around Rs. 850 billion. The
balance sheet size of the combined entity would be over Rs. 1,500 billion. The share
exchange ratio approved by the respective Boards was based on the recommendations made
by M/s Dalal & Shah, Chartered Accountants, and Ernst & Young Private Ltd. who acted as
independent joint valuers to the transaction. The draft Scheme of Amalgamation, the due
diligence report and any other matters as required will be considered by the Board of HDFC
Bank in their meeting scheduled on February 28, 2008. The Board of CBOP will meet on the
same day in order to consider the draft Scheme of Amalgamation and any other matters as
required.
HDFC Bank’s Board noted that in the event of the merger of Centurion Bank of Punjab
with HDFC Bank being approved at its meeting on February 28, 2008, it would consider
making a preferential offer to its promoter Housing Development Finance Corporation
(HDFC), to enable HDFC to maintain its percentage shareholding in the merged entity.
Distribution network
HDFC Bank is headquartered 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 centres 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
centres where the NSE/BSE have a strong and active member base. The Bank also has a
network of about over 1,740 networked ATMs across these cities. 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.
22

23. Awards
 2019
FE Best Bank Awards Best Bank: New Private Sector
 2018
The Economic Times Corporate Excellence
Awards 2018
Company of the Year
Aadhaar Excellence Awards 2018 Best Performing Private Bank in Total
Aadhaar Generation & Update
Business Today Best Bank Awards Bank of the Year
Best in Innovation
Best Large Bank
Fastest Growing Large Bank
 2017
Business India 19th Best Bank survey Best Bank for the year 2017- HDFC Bank
The Asset Triple A Country Awards 2017 Best IPO, India
The Advertising Club Banking for Marquees
2017
Best Marketer in Banking sector
 2016
Institutional Investor All-Asia Executive
Team ranking 2016
Mr. Aditya Puri ranked Best CEO-HDFC
Bank ranked Best Company in Banks
sector of Asia ex-Japan
Business Today KPMG India's Best Banks 2015 Awards
 2015
National Payments Excellence Awards 2015 HDFC Bank wins NPCI National
Payments Excellence Awards
Business Today Award Best CEO Award-Mr.Aditiya Puri
Forbes Asia Fab 50 Companies list for the 9th
year
Finance Asia Awards Best Equity Deals in Asia Award
23

24. PRODUCTS AND SERVICES PROVIDED BY HDFC BANK
 Savings Accounts
Regular Savings Account Savings plus Account Savings ax Account No Frills Account
Retail Trust Account Salary Accounts
Payroll Classic Regular Premium
Defense Salary Account Kid's Advantage Account
Pension Saving Bank Account Family Savings Group
 Current Accounts
Plus Current Account Trade Current Account Premium Current Account Regular Current
Account Reimbursement Current Account RFC - Domestic Account
 Fixed Deposits
Regular Fixed Deposit Super Saver Account Sweep-in Account
 Loans
Personal Loans Home Loans
Two Wheeler Loans New Car Loans
Used Car Loans
Overdraft against Car Express Loans
Gold loan
Educational loan
Loan against securities
 Cards
----Credits Cards
 Silver Credit Card Gold
 Credit card
 Platinum plus credit card
----Debit Cards
 Easy shop International Debit Card Easy
 Shop gold debit card
 Easy Shop International Business Debit Card
Access Your Bank
✔ Net Banking
✔ Mobile Banking ATM
✔ Phone Banking
24

25. 1.3 INTRODUCTION TO TOPIC
The report contains the organizational study done at HDFC Bank. The report title is
“CUSTOMER SATISFACTION TOWARDS HDFC BANKING SERVICES”.
The report gives an overview of the banking Sector and company profile. And awareness of
customers about different types of products and services offered by HDFC Bank.
This study was conducted to find out the customer satisfaction towards HDFC bank. The
methodology adopted for the study was through a structured questionnaire, which is targeted
to the different persons in Rudrapur. For this purpose sample size of 100 was taken. The data
collected from the different persons was analyzed thoroughly and presented in the form of
charts and tables.
HDFC must advertise regularly and create brand value for its products and services. Most of
its competitors like ICICI, Axis, kotak Mahindra and nationalized banks use television
advertisements to promote their products. The Indian consumer has a false perception about
private banks – they feel that it would not safe.
Safety and returns are the two main reasons people invest in banks. On the whole HDFC
bank is a good place to work at. Every new recruit is provided with extensive training on the
products of HDFC. This training enables an advisor/sales manager to market the policies
better. The company should try to create awareness about itself in India. With an
improvement in the sales techniques used, a fair bit of advertising and modifications to the
existing product portfolio, HDFC would be all set to capture the banking market in India as
it has around the globe.
What is customer satisfaction?
Customer satisfaction refers to how satisfied customers are with the products or services
they receive from a particular agency. The level of satisfaction is determined not only by the
quality and type of customer experience but also by the customer’s expectations. A customer
may be defined as someone who
 has a direct relationship with or direct effects by your agency and
 Receive or relies on one or more of your agency’s services or products.
25

26. BUSINESS
HDFC bank provides a number of products and services including wholesale banking, retail
banking, treasury, auto loans, two wheeler loans, personal loans, loans against property
consumer durable loan, lifestyle loan and credit cards.
WHOLESALE BANKING SERVICES:
The Bank's target market ranges from large, blue-chip manufacturing companies in the
Indian corporate to small & mid-sized corporates and agri-based businesses. For these
customers, the Bank provides a wide range of commercial and transactional banking
services, including 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
recognised 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-stop window for all
his/her banking requirements. The products are backed by world-class service and delivered
to customers through the growing branch network, as well as through alternative delivery
channels like ATMs, Phone Banking, Net Banking and Mobile Banking.
The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus
and the Investment Advisory Services programs have been designed keeping in mind needs
of customers who seek distinct financial solutions, information and advice on various
investment avenues. The Bank also has a wide array of retail loan products including Auto
Loans, Loans against marketable securities, Personal Loans and Loans for Two-wheelers.
As a leader in various net based B2C opportunities including a wide range of internet
banking services for Fixed Deposits, Loans, Bill Payments, etc.
26

27. TREASURY:
Within this business, the bank has three main product areas - Foreign Exchange and
Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the
liberalisation of the financial markets in India, corporates need more sophisticated risk
management information, advice and product structures. These and fine pricing on various
treasury products are provided through the bank's Treasury team. To comply with statutory
reserve requirements, the bank is required to hold 25% of its deposits in government
securities. The Treasury business is responsible for managing the returns and market risk on
this investment portfolio.
PERSONAL LOAN:
In finance, unsecured debt refers to any type of debt or general obligation that is not
protected by a guarantor, or collateralized by a lien on specific assets of the borrower in the
case of a bankruptcy or liquidation or failure to meet the terms for repayment. That differs
from secured debt such as a mortgage, which is backed by a piece of real estate.
In the event of the bankruptcy of the borrower, the unsecured creditors have a general claim
on the assets of the borrower after the specific pledged assets have been assigned to the
secured creditors. The unsecured creditors usually realize a smaller proportion of their
claims than the secured creditors. In some legal systems, unsecured creditors who are also
indebted to the insolvent debtor are able (and, in some jurisdictions, required) to set off the
debts, which actually puts the unsecured creditor with a matured liability to the debtor in a
pre-preferential position.
CREDIT CARD:
A credit card is a payment card issued to users (cardholders) to enable the cardholder to pay
a merchant for goods and services based on the cardholder's promise to the card issuer to pay
them for the amounts plus the other agreed charges. The card issuer (usually a bank) creates
a revolving account and grants a line of credit to the cardholder, from which the cardholder
can borrow money for payment to a merchant or as a cash advance.
27

28. EDUCATION LOAN:
HDFC Bank also offers education loans at attractive interest rates to help the students pursue
education in their dream institute whether in India or abroad. Loans up to Rs. 10 Lakhs can
be availed at HDFC Bank which is also eligible for tax exemption under section 80(E) of the
Income Tax Act, 1961. For high-value loans, collateral security is required which includes
fixed deposit, LIC, NSC or a residential property. The bank also offers a flexible repayment
tenure- loans below Rs. 7.5 Lakhs can be paid within 10 years and those above Rs. 7.5
Lakhs have a maximum tenure of 15 years. Transparent procedure and doorstep services
make this a great option to fund higher education.
BUSINESS LOAN:
To help small and medium scale businesses grow and flourish more, HDFC Bank offers
business loans loaded with a host of benefits. These loans are tailor-made to suit the unique
needs of a business and are available at competitive interest rates. There is no need to pledge
an asset as collateral for business loans and the application process is also transparent.
Additional features like 60-second eligibility check, disbursal within 48 hours, dropline
overdraft facility and the credit protect plan together make this loan a great option for small
businesses. Business loans up to Rs. 50 Lakhs can be availed at HDFC Bank.
GOLD LOAN:
HDFC Bank offers gold loans to help its customers fulfil their immediate need for cash such
as wedding expenses, business expansion, education or medical needs. These loans require
minimal documentation and ensure quick funds disbursal. The pledged gold jewellery is kept
under secure storage to ensure safety. Some of its advantages include-
 Flexible rates of interest
 Minimal documentation
 Disbursal within 45 minutes
 Secure storage of the pledged gold
SAVINGS ACCOUNT:
Different types of savings accounts can be opened with HDFC Bank with the sole purpose of
saving money and earning interest, namely-
28

29.  Regular Savings Account
 Savings Max Account
 Women’s Savings Account
 Kids Advantage Account
 Senior Citizens Account
 Family Savings Group Account
 Basic Savings Bank Deposit Account
 Government/Institutional Savings Account
 BSBDA Small Account
 Government Scheme Beneficiary Savings Account
HOME LOAN:
Customers can avail home loan from HDFC Bank at highly competitive rates of interest.
This loan can be availed for the purpose of buying a house or to build one. Outstanding
home loan from other banks can also be transferred to HDFC Bank at lower rates of interest.
HDFC Bank ensures a hassle-free application process and easy documentation formalities.
You can also get pre-approved home loan and go house hunting with more confidence.
Some of the reasons why you must avail HDFC Bank home loan are-
 Attractive interest rates
 Special lower rates of interest for women borrowers
 Safe document storage
 Quick processing and disbursal
DEBIT CARD:
To save the customers from the hassles of withdrawing cash every time they want to make a
transaction, HDFC Bank offers a complimentary debit card to its savings account holders.
These cards are secured with a PIN and OTP secured at the time of making online
transactions. Times Points Debit Card, Easy Shop Platinum Debit Card, Jet Privilege HDFC
Bank Signature Debit Card and Repay Premium Debit Card are some popular debit cards by
HDFC Bank. Based on the type of debit card, you can avail benefits like fuel surcharge
waiver, cashback, high daily limit and air miles earnings. You can also customize your daily
limit by calling the bank’s customer service desk.
29

30. SERVICE QUALITY IN BANKS
In the days of intense competition, the banks are no different from any other consumer
marketing company. It has become essential for the service firms in general and banks in
particular to identify what the customer's requirements are and how those customer
requirements can be met effectively. In the days where product and price differences are
blurred, superior service by the service provider is the only differentiator left before the
banks to attract, retain and partner with the customers. Superior service quality enables a
firm to differentiate itself from its competition, gain a sustainable competitive advantage,
and enhance efficiency .The benefits of service quality 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. The construct of service quality has therefore been a subject of great
interest to service marketing researchers.
Service quality has been defined by various experts in various way as:
’Service Quality is the difference between customers' expectations for service performance
prior to the service encounter and their perceptions of the service received.' According to
Gefan „Service quality is the subjective comparison that customers make between the
qualities of service that they want to receive and what they actually get.' Parasuraman says,
'Service quality is determined by the differences between customer's expectations of services
provider’s performance and their evaluation of the services they received.
Service quality is recognized as a multidimensional construct. While the number of
dimensions often varies from researcher to researcher, there is some consensus that service
quality consists of three primary aspects: outcome quality, interaction quality, and physical
service environment quality.
The most popular dimensions of service quality--features five dimensions: tangibles,
reliability, responsiveness, empathy, and assurance. The tangibles dimension corresponds
to the aforementioned physical environment aspect, the reliability dimension corresponds to
the service outcome aspect, and the remaining three represent aspects of interaction quality.
Both the costs and the revenue of firms are affected by repeat purchases, positive word-of-
mouth recommendation, and customer feedback.
30

31. 2. LITERATURE REVIEW
Bharathi Pathak (2003)
Make a study of “The financial operations of new generation private sector banks in India”.
Five banks (Indusind bank, Centurion bank, HDFC bank, ICICI bank and UTI bank) are
taken up for financial analysis for a period of five years from 1996-97 to 2000-01. Their
financial performance is studied under four different parameters – financial, operating,
profitability and productivity. His conclusion is that the working of all banks is satisfactory
but HDFC bank comes at the top closely followed by ICICI bank.
Gilotra (2003)
In his study on retail lending, views that the success of retail lending of a bank depends on
factors like marketing efficiency, proper appraisal and follow-up. He also finds that HDFC
has become very excellent in housing finance solely due to the long term strategies adopted
by them.
S. Joy (2005)
His study “Performance evaluation of private sector scheduled banks in Kerala” suggests
that private sector banks in Kerala are far below the other banks in performance but above
other banks in growth proportions.
Bhayani (2005)
Conducted a study among 200 customers on the retail banking awareness of private banks,
nationalized and co-operative banks in the Rajkot city of Gujarat.So the banks should try to
create awareness among customers on technology and technology driven products for better
retail banking operations.
Arora and Kaur (2006)
Examined the financial performance of nationalized banks, private sector banks, state bank
group and foreign banks after the reforms. It was found that non-performing assets had an
adverse impact on the financial performance of public sector banks. It was recommended
that public sector banks should enhance the training of the employee, reduce non-performing
assets to improve financial performance.
31

32. Vanniarajan T. and Vikkraman P. (2006)
In their article, focused the link between customers’ satisfaction and organizational
performance. Three groups of banks namely, Associates of State Bank of India, Nationalized
Banks and Private Sector Banks were included in the study. The empirical data on
customers’ satisfaction on the quality of various services offered by the banks and its
business performance were collected through scheduled interview. Based on the empirical
data, authors identified the important items in the service quality of banks as Empathy,
Assurance, Reliability, Tangibles and Responsiveness. The study identified the positive
impact of customer satisfaction on service quality of banks resulting in its net profit. The
significant impact on net profit was created by the customers’ satisfaction on the service
quality factors, namely, Empathy, Assurance and Tangibles. The study suggested that the
suitable strategies to increase the profit among the banks were creating, maintaining and
enhancing appropriate service quality to the customers
Dharmendra Singh and Garima Kohli (2006)
The opinion that the new generation banks in India are different from the traditional banks.
They are the pioneers in the use of technology, utilization of manpower with professional
management and implementing corporate governance. The traditional banks follow the
technology adoption of these banks to retain customers.
Venkata Seshaiah and Vunyale Narender (2007)
Identify various factors affecting customer’s choice in their study “Factors affecting
customer’s choice of banking”. They probe into the psychology of the customer’s loyalty.
They identify different factors affecting the choice of banks through a survey. They conclude
that in order to achieve their corporate mission through customer orientation, retail banks
must reorganize their activities.
Dhandabani (2010)
Examined the nature of linkage between service quality and customer loyalty in Indian retail
banking. Study used confirmatory factor analysis to identify the service quality dimension.
The resulted dimensions are Reliability, Responsiveness, Knowledge and recovery; and
Tangibles. The service quality dimensions lead to customer satisfaction and the customers'
satisfaction leads loyalty. The structural equation model reveals that there is no significant
32

33. direct linkage between service quality and customers loyalty. At the same time, the service
quality has a significant indirect impact on customer's loyalty especially through customer's
satisfaction.
Kumar and Gulati (2010)
Analyzed performance of banks after reforms. It was argued that due to technology adoption
and competition the efficiency of banks have improved. It was argued that to leverage
technology, banks should focus on competition and market oriented strategies.
Dilip Kumar and Durga Sankar (2011)
Compare the performances of new generation banks in India. During the periods of slow-
down in the growth of credit, the private sector banks have been able to perform better on
account of the retail lending. The competition in the field is very high and the customers are
benefitted by it in the form of better service quality, product innovations and better bargains.
The retail segment has tremendous growth.
Kajal Chaudhary and Monika Sharma (2011)
In their article “Performance of Indian public sector banks and private sector banks: a
comparative study” suggests that banks should take adequate measures to escape from NPA
problem. Proper training should be given in documentation and creation of charge of
securities to the staff involved in loan sanctioning. Care should be exercised in the selection
of borrowers and projects.
Kalpesh (2011)
In his comparative study of financial performance of Indian banks points out that efficiency
and stability of the banking system in India is impacted by the reform measures. The
profitability and liquidity of both public and private sector banks have also improved a lot.
Ahmed (2011)
It is observed that there is a relation between customer satisfaction in online banking service
and tangibles as reliability, responsiveness and empathy. He made a survey with 21 bank
customers. The results showed that the customers are satisfied with Islamic Banking online
banking services in Ml.
33

34. Naveen Kumar and Gangal (2011)
To studied the level of customer satisfaction in new generation banks. To achieve the
objective of the study,the primary data have been collected through questionnaire from 100
customers of the Preet Vihar branch of HDFC Bank in Delhi. The study found that in the
most important categories such as managing account and handing the enquiries, the bank
performance is miserable and has totally failed to come true on the expectations of
customers. Regarding the quality of staff, the bank is in good position and something to
cheer. In almost in each parameter, the customers feel satisfied and also praise the efforts of
bank staff. Out of 31 parameters, the bank has failed to satisfy customers at 15 parameters
which include cost of services, privacy of transactions,response time, etc. The study suggests
that the bank should improve those parameters immediately to fulfill customer expectation
where the mean score of expectations is more than observations. The bank has to maintain
its services on those parameters where the mean score of expectations is equal to
observations with future improvement.
Singh and Kaur (2011)
His study focus on the factors that affect customer satisfaction in selected Indian universal
banks. Survey method was used for the study. A well-structured questionnaire was used fr
collecting data from sample respondents. He identifies seven factors that influence customer
satisfaction– employee responsiveness, appearance of tangibles, social responsibility, service
innovation, positive word-of-mouth, competence, and reliability. The variable social
responsibility, positive word-of-mouth, and reliability have major influences on the overall
satisfaction of the customers.
Nishit (2012)
In her comparative study on private sector banks in India analysed the performance of six
major private sector banks during the period 2008-09 to 2009-10. She found that profit
maximization and wealth maximization are the main concern for banks. The private sector
banks play an important role in the economic development of the country. The study also
contains the profitability analysis of the sample banks which can be used as a basis for
investment decision by the investors.
34

35. Nirmaljeet Virk and Prabhjot Kaur Mahal (2012)
Carried out a study on customer satisfaction in public and private banks of India. Private
bank mangers maintain better personal relationship with customers than the public bank
managers and this factor determines the customers’ satisfaction to a large extent.
Jain (2012)
In their study “Customer Perception on Service Quality in Banking Sector: With Special
Reference to Indian Private Banks in Moradabad Region” try to learn and understand the
customer perception regarding service quality and to learn and understand the different
dimension of service quality in banks. The Sample size used is 100 and the sample universe
is Moradabad. The service quality model developed by Zeithamal, Parsuraman and Berry
(1988) has been used in the present study. The analysis reveals that among the private sector
banks all the dimensions of service quality are equally important.
Maya Basant Lohani (2012)
Examined on service quality in selected banks and measured in five dimensions by using
SERVQUAL scale developed by Parasuraman et al (1988) and revealed that there exist a
small perceptual difference regarding overall service quality with the respective banks. The
study of found that banks have more concentration on the tangible factor like a
computerization, physical facilities, etc. to attract the customers. The dimensions Reliability,
Responsiveness and Assurance are found to be the most vital and strategic determinants of
service quality and customer satisfaction for both public and private sector banks. If banks
want to sustain customers on a long term basis, bankers should work towards 100%
customer satisfaction that automatically foster customer delight.
Mittal and Pachauri (2013)
In their study on promotional tools and techniques adopted for retail banking compared the
public sector banks and private sector banks. Their finding is that the perception of
customers with regard to the type of promotional tools and the techniques adopted
significantly vary between public sector and private sector banks.
35

36. Sujatha S. And Arumugam N. (2013)
In their study “Customer satisfaction in Indian banking sector” view that before introducing
various services to customers, banks should take care of their needs. To serve customers
with different occupations and educational backgrounds banks should adopt strategies. There
is a correlation between the satisfaction of the customer and the performance of the banks.
So it is important for banks to consider satisfaction of the customer as a relationship-
marketing strategy.
Sharma and Prasad (2014)
Analyzed the development and challenges of Indian banking after liberalization. It was
found that new opportunities have emerged due to liberalization in banking sector, at the
same time many challenges have emerged for the banks. It was recommended that banks
should increase the coverage to services masses and reduce cost and expand globally.
Dr. Rupa Rathee (2014)
Studied the service quality gaps in banks after nationalization of commercial banks. With the
entry of new generation, tech-savvy, private banks the banking sector has become too
competitive. Gap analysis was applied to find the gaps between expected and performed
service in private banks to find the difference between male and female perception. This
study provided an insight into which attributes of service quality in private bank were most
important in providing satisfaction to customers and areas where significant gaps existed.
The customers trust the public sector banks. These banks have existed in the market for a
longer period than the private sector banks. The reliability factor is a positive factor for these
banks.
Maken and Shekhar (2017)
Analyzed the performance of private and private sector bank. Performance of PNB and
HDFC was considered for the study. Time period of study was from 2012 to 2016. It was
concluded that HDFC had performed better as compared to PNB. The total income of HDFC
had increased by 118.18% as compared to 33.65% of PNB. Total investments of HDFC have
grown at a rate of 93.42% as compared to 28.72%.It was concluded that public sector banks
are lagging behind technology, as compared to private sector banks.
36

37. 3. RESEARCH METHODOLOGY
A simple way of solving the research problem is the Research Methodology. It can also be
said that research methodology is a science which is related with the study of knowing how
research can be done scientifically. We study about the different steps and the research
processes with the help of Research Methodology, which are generally adopted for the study
of research problem and also the basic logics which are behind them. The basic steps which
are performed in this research are as following:
Research Process
The steps of research process are as follows:
Step1. Formulation of the research problem.
Step 2. Literature survey
Step 3. Hypothesis development
Step 4. Research design preparations
Step 5. Proposal of the research
Step 6. Collection of data/ Field work
Step 7. Data preparation and its analysis
Step 8. Generalization and then Interpretation
Step 9. Written report’s preparations
Step 10. Presenting orally
There are two stages which are consisted in the research. The first stage is the conduction of
a survey for the collection of the data from the sample of people. In the second stage,
analysis of the data which was collected in the first stage is included.
37

38. 3.1 CONCEPTUALIZATION
In the present competitive economy banking sector has been facing dynamic challenges in
concerning both customer base and performance. The indispensable competitive strategic
role of this sector is vital one in managing the customers. Providing service quality is highly
significant function of service industry in today's competitive environment. Service quality
is the excellent strategy and plays a key role in service sector in general and banking sector
in particular to satisfy the customers' needs and retain them. The present study aims at
assessing the service quality that delivered by the banks in rural areas, using SERVQUAL
model.
With the phenomenal increase in the country's population and the increased demand for
banking services; speed, service quality and customer satisfaction are going to be key
differentiators for each bank's future success. Thus, it is imperative for banks to get useful
feedback on their actual response time and customers’ service quality perceptions of retail
banking, which in turn will help them take positive steps to maintain a competitive edge.
Basically, customer satisfaction is a psychological state; carefulness should then betaken
when measuring it. It has been a growing trend today, for banks to move away from a
transactional based marketing approach to a relationship-based approach that has its core the
recognition of the lifetime value of the customer. Satisfaction with banking services has been
an area of growing interests to researchers and managers.
Service quality has been defined as the degree and direction between customer service
expectations and perceptions.Service quality has an impact on profitability and costs, as
service quality influences customer satisfaction; it impacts customer retention, reduces costs
and increases profitability.
3.2 SIGNIFICANCE OF THE STUDY
The study would try to throw some insights into the existing services provided by the banks,
perceptions and the actual service 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. Superior service quality enables a firm to differentiate itself from its
competition, gain a sustainable competitive advantage, and enhance efficiency.
38

39. 3.3 OBJECTIVE OF THE STUDY
Main objective:
To study customer satisfaction towards HDFC banking services.
Sub objective:
 To examine the essential dimensions of service quality i.e. RATER-Reliability,
assurance, tangibles, empathy and responsiveness of HDFC bank and its effect on
customers’ satisfaction.
 To find out the level of perception of the customers from the service quality offered
by the banks.
 To know which service quality dimension of the bank is performing well.
 To identify which dimension of service quality needs improvement so that the quality
of service of HDFC banks is enhanced.
 Study the value of existing customers and reduced cost associated with servicing
them and way to increasing the overall efficiency of bank performance.
 Identifying the most profitable and least profitable customer(Banding)
 Receiving the customer feedback that leads to new and improved product and
services.
3.4 SCOPE OF THE STUDY
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.
A CRM program will allow a business to make new customers,service the
customers,increase the value of the customer to the company,retain good customers and
determine which customers can be retained or given a higher level of service and turning
them into loyal customers and ultimately increasing the profit for banks.
The customers satisfaction is also l mow why they preferred HDFC Bank and factor
influencing there satisfaction level. As Customer is very important for the company there
contribute profitability for company but it is not necessary that every customer generate
revenue for company.
39

40. 3.5 RESEARCH DESIGN
A Research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure.
It is a frame work, which determines the course of action towards the collection and analysis
of required data.
The methodology consisted of Descriptive research design in which the problem has to be
defined. Descriptive research is “aimed at throwing lights on current issues through a
process of data collection that will enable th3em in the description of the situation more
completely than was possible without employing this method” or in other words “descriptive
research may be features as a simple attempt to determine, describe or identify what is, while
analytical research attempts to establish why it is that way or how it came to be. The
Descriptive research design is used in this study. The descriptive study requires a clear
specification of who, what, when, where, why & how aspects of Research.
3.6 COLLECTION OF DATA
Secondary data
Secondary data are those data which are being already collected by someone else and which
have already been passed through the statistical process. It has been collected through
published date form:
 Internet
 Books
 Magazines
Research design Descriptive research
Sample size 100
Sampling method Random Convince Sampling
Sample unit Customer satisfaction towards HDFC
banking services
Measuring tools Questionnaire
40

41. 3.7 SOURCE OF DATA COLLECTION
 Internet: - Data can be collected by the internet survey. There is lot of data on the
internet which help to give views about the data.
 Magazines: - Data is collected through magazines by reading them. Magazines are
helpful to provide journals.
 Newspaper: - Data can be collected through newspaper. Newspaper is helpful to
provide current news.
 Questionnaire: - It implies framing a number of questions that to be filled by
respondents or customers.
 Interview: - Data can be collected by putting personally question. In interview
interviewer and interviewee are face to face each other. Interviews can range from
unstructured conversations to highly structured conversations in which specific
questions occurs in specified order. Interview technique has also been used in some
cases where it was difficult to draw the information through the questionnaire.
3.8 SAMPLING TECHNIQUE
Sampling is necessary because it is almost impossible to examine the entire parent
population or universe. Various factors such as time available, cost, purpose of study etc.
make it necessary for the researchers to choose a sample. Since it is not possible to study
whole universe, it becomes necessary to take sample from the universe to know about its
characteristics.
✔ Sampling Units: Customers of HDFC bank
✔ Sample Technique: Random Sampling.
✔ Research Instrument: Structured Questionnaire.
SAMPLE SIZE:
The work is a case of HDFC Bank, one of the largest bank of Indian banking industry
together representing over 25 per cent of the market share of Indian banking space. The
survey was conducted in the city of with two branches of HDFC Bank, with 100 customers
as respondent.
41

42. 3.9 ANALYTICAL TOOLS USED IN STUDY
➢ Tabulation method: This method is particularly used when minimizing functions are
having a number of variables.
➢ Percentage method: It is applied to create a contingency table from the frequency
distribution.
➢ Charts: Charts have been used to express that how much percentage of the
respondents have positive attitude and how much has negative attitude toward a
particular situation.
3.10 LIMITATIONS OF THE STUDY
➢ The study is only for the 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 banking industry.
➢ The study can also not be generalized for public and private sector banks of the
country.
➢ Respondents may give biased answers for the required data. Some of the
respondents did not like to respond.
➢ 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 analyse and come at a right conclusion.
➢ In our study we have included 100 customers of bank because of time limit.
42

43. 4. DATA ANALYSIS AND INTERPRETATION
4.1 SWOT ANALYSIS OF HDFC BANK
STRENGTHS
✔ HDFC bank is located in 1,174 cities in India and has more than 800 locations to
serve customers through Telephone banking.
✔ The bank’s ATM card is compatible with all domestic and international Visa/Master
card, Visa Electron/ Maestro, Plus and American Express. This is one reason for
HDFC cards to be the most preferred card for shopping and online transactions.
✔ HDFC bank has the high degree of customer satisfaction when compared to other
private banks.
✔ The attrition rate in HDFC is low and it is one of the best places to work in private
banking sector.
✔ HDFC has lots of awards and recognition, it has received ‘Best Bank’ award from
various financial rating institutions like Dun and Bradstreet, Financial express, Euro
money awards for excellence, Finance Asia country awards etc.
✔ HDFC has good financial advisors in terms of guiding customers towards right
investments.
43

44. WEAKNESS
✔ HDFC bank doesn’t have strong presence in Rural areas, where as ICICI bank its
direct competitor is expanding in rural market.
✔ HDFC cannot enjoy first mover advantage in rural areas. Rural people are hard core
loyal in terms of banking services.
✔ HDFC lacks in aggressive marketing strategies like ICICI.
✔ The bank focuses mostly on high end clients.
✔ Some of the bank’s product categories lack in performance and doesn’t have reach in
the market
✔ The share prices of HDFC are often fluctuating causing NEITHER AGREE NOR
DISAGREEty for the investors.
OPPORTUNITIES
✔ HDFC bank has better asset quality parameters over government banks, hence the
profit growth is likely to increase.
✔ The companies in large and SME are growing at very fast pace. HDFC has good
reputation in terms of maintaining corporate salary accounts.
✔ HDFC bank has improved it’s bad debts portfolio and the recovery of bad debts are
high when compared to government banks.
✔ HDFC has very good opportunities in abroad.
✔ Greater scope for acquisitions and strategic alliances due to strong financial position.
THREATS
✔ HDFC’s nonperforming assets (NPA) increased. Though it is a slight variation it’s
not a good sign for the financial health of the bank.
✔ The non banking financial companies and new age banks are increasing in India.
✔ The HDFC is not able to expand its market share as ICICI imposes major threat.
✔ The government banks are trying to modernize to compete with private banks.
✔ RBI has opened up to 74% for foreign banks to invest in Indian market.
44

45. 4.2 QUESTIONNAIRE ANALYSIS
4.2.1. For how long you are part of HDFC Bank?
Table 4.2.1
OBJECTIVE NO. OF RESPONDENTS PERCENT(%)
Less than 6 Months 20 20%
Less than 1 Year 34 34%
Less than 2 Years 30 30%
More than 2 Years 16 16%
TOTAL 100 100%
Fig.4.2.1
INTERPRETATION
From the above graph it is clear that majority of the respondents are part of HDFC Bank
from last one year i.e. 34. 16% respondents are part of HDFC Bank from last more than 2
years, 20%respondents from 6 months and remaining 30% respondents are part of HDFC
Bank for last two years.
45
20%
34%
30%
16%
NO. OF RESPONDENTS
18-23 Years
24-29 Years
30-35 Years
35 Years and above

46. TANGIBILITY DIMENSION OF SERVICE QUALITY
4.2.2 Physical facilities, equipments and appearance of personnel
A. HDFC bank has modern looking equipment.
Table 4.2.2 A
OBJECTIVE NO. OF RESPONDENTS PERCENT
STRONGLY DISAGREE 10 10%
DISAGREE 18 18%
NEITHER AGREE NOR
DISAGREE
22 22%
AGREE 50 50%
TOTAL 100 100%
Fig.4.2.2 A
INTERPRETATION
This chart show that majority of the respondents is agree with this statement. Among the
total respondents, 18% disagreed, 22% were neutral and 50% agreed. This shows that
majority of the respondents think that HDFC Bank has modern looking equipments or no hi-
tech equipments.
46
10%
18%
22%
50%
NO. OF RESPONDENTS
STRONGLY DISAGREE
DISAGREE
NEITHER AGREE NOR
DISAGREE
AGREE

47. B. The bank's physical features are visually appealing.
Table 4.2.2 B
OBJECTIVE NO. OF RESPONDENTS PERCENT
DISAGREE 8 8%
NEITHER AGREE NOR
DISAGREE
52 52%
AGREE 40 40%
TOTAL 100 100%
Fig.4.2.2 B
INTERPRETATION
This chart shows that majority of the respondents neither agree nor disagree about the
statement. Among the total respondents,, 8% disagreed and 40% agreed that HDFC bank
physical facilities are visually appealing. This shows that most of the respondents think
bank’s physical features are visually appealing.
47
8%
52%
40%
NO. OF RESPONDENTS
DISAGREE
NEITHER AGREE NOR
DISAGREE
AGREE

48. C. The bank's reception desk employees are neat appearing.
Table 4.2.2 C
OBJECTIVE NO. OF RESPONDENTS PERCENT
DISAGREE 10 10%
NEITHER AGREE NOR
DISAGREE
12 12%
AGREE 36 36%
STRONGLY AGREE 42 42%
TOTAL 100 100%
Fig.4.2.2 C
INTERPRETATION
This chart shows that majority of the respondent strongly agree about the statement. Among
the total respondent 48% respondents strongly agreed, 12% were neutral, 36% respondents
were agreed and rest disagreed.
48
10%
12%
36%
42%
NO. OF RESPONDENTS
DISAGREE
NEITHER AGREE NOR
DISAGREE
AGREE
STRONGLY AGREE

49. D. Materials associated with the service (such as pamphlets or statements) are visually
appealing at the bank.
Table 4.2.2 D
OBJECTIVE NO. OF RESPONDENTS PERCENT
DISAGREE 6 6%
NEITHER AGREE NOR
DISAGREE
44 44%
AGREE 36 36%
STRONGLY AGREE 14 14%
TOTAL 100 100%
Fig.4.2.2 D
INTERPRETATION
This chart shows that majority of 44% respondents were neutral about the statement.
Here 36% respondents were agreed, 14% respondents strongly agreed with this statement
and rest disagreed. Hence, in general it can be concluded that materials associated with the
services such as pamphlets or statements are visually appealing.
49
6%
44%
36%
14%
NO. OF RESPONDENTS
DISAGREE
NEITHER AGREE NOR
DISAGREE
AGREE
STRONGLY AGREE

50. RELIABILITY DIMENSION OF SERVICE QUALITY
4.2.3 Ability to perform the promised service dependably and accurately
A. When the bank promises to do something by a certain time, it does so
Table 4.2.3 A
OBJECTIVE NO. OF RESPONDENTS PERCENT
DISAGREE 48 48%
NEITHER AGREE NOR
DISAGREE
14 14%
AGREE 28 28%
STRONGLY AGREE 10 10%
TOTAL 100 100%
Fig.4.2.3 A
INTERPRETATION
This chart shows that majority of the respondents disagreed with this statement i.e 48%.
Among the total respondents, 28% respondents were agreed,14% respondents were neutral
and 10% strongly agreed. Hence, in general it can be concluded that majority of them
disagreed that the bank when promises to do something by certain time, it does so.
50
48%
14%
28%
10%
NO. OF REPONDENTS
DISAGREE
NEITHER AGREE NOR
DISAGREE
AGREE
STRONGLY AGREE

51. B. When you have a problem, the bank shows a sincere interest in solving it.
Table 4.2.3 B
OBJECTIVE NO. OF RESPONDENTS PERCENT
DISAGREE 10 10%
NEITHER AGREE NOR
DISAGREE
28 28%
AGREE 46 46%
STRONGLY AGREE 16 16%
TOTAL 100 100%
Fig. 4.2.3 B
INTERPRETATION
When you have a problem, HDFC bank shows sincere interest in solving it. This chart shows
that majority of the respondents were agreed with the statement i.e. 46%. Among the total
respondents, 10% disagreed, 16% strongly agreed and 28% respondents were neutral.
Hence,HDFC bank can be said to be reliable.
51
10%
28%
46%
16%
NO. OF RESPONDENTS
DISAGREE
NEITHER AGREE NOR
DISAGREE
AGREE
STRONGLY AGREE

52. C. The bank performs the service right the first time.
Table 4.2.3 C
OBJECTIVE NO. OF RESPONDENTS PERCENT
DISAGREE 16 16%
NEITHER AGREE NOR
DISAGREE
38 38%
AGREE 34 34%
STRONGLY AGREE 12 12%
TOTAL 100 100%
Fig.4.2.3 C
INTERPRETATION
This chart shows that majority of the respondents were neutral about this statement i.e. 38%.
Among the total respondents, 12% strongly agreed, 16% disagreed and rest 34% respondents
were agreed. This shows that majority of the respondents think that HDFC bank performs
the services right the first time.
52
16%
38%
34%
12%
NO. OF RESPONDENTS
DISAGREE
NEITHER AGREE NOR
DISAGREE
AGREE
STRONGLY AGREE

53. D. The bank insists on error free records.
Table 4.2.3 D
OBJECTIVE NO. OF RESPONDENTS PERCENT
DISAGREE 10 10%
NEITHER AGREE NOR
DISAGREE
25 25%
AGREE 41 41%
STRONGLY AGREE 24 24%
TOTAL 100 100%
Fig.4.2.3 D
INTERPRETATION
This chart shows that majority of the respondents were agreed with this statement i.e.
41%.Among the total respondents, 10% disagreed, 24% strongly agreed and rest 25%
respondents were neutral. Hence, this analysis shows that HDFC surely insist on error free
records.
53
10%
25%
41%
24%
NO. OF RESPONDENTS
DISAGREE
NEITHER AGREE NOR
DISAGREE
AGREE
STRONGLY AGREE

54. RESPONSIVENESS DIMENSION OF SERVICE
4.2.4 Willingness to help customers and provide prompt services
A. Employees in the bank tell you exactly when the services will be performed.
Table 4.2.4 A
OBJECTIVE NO. OF RESPONDENTS PERCENT
DISAGREE 16 16%
NEITHER AGREE NOR
DISAGREE
30 30%
AGREE 39 39%
STRONGLY AGREE 15 15%
TOTAL 100 100%
Fig. 4.2.4 A
INTERPRETATION
This chart shows that majority of the respondents were agreed with this statement i.e. 39%.
Among the total respondents,, 15% strongly agreed, 16% disagreed and rest 30%
respondents were neutral. This shows that employees in the bank tell you exactly when the
services will be performed.
54
16%
30% 39%
15%
NO. OF RESPONDENTS
DISAGREE
NEITHER AGREE NOR
DISAGREE
AGREE
STRONGLY AGREE

55. B. Employees in the bank give you prompt service.
Table 4.2.4 B
OBJECTIVE NO. OF RESPONDENTS PERCENT
DISAGREE 10 10%
NEITHER AGREE NOR
DISAGREE
32 32%
AGREE 44 44%
STRONGLY AGREE 14 14%
TOTAL 100 100%
Fig. 4.2.4 B
INTERPRETATION
This chart shows that majority of the respondents agreed with this statement i.e. 44%.
Among the total respondents,, 10% disagreed, 14% strongly agreed and 32% respondents
were neutral. Hence, employees in HDFC Bank give prompt service.
55
10%
32%
44%
14%
NO. OF RESPONDENTS
DISAGREE
NEITHER AGREE NOR
DISAGREE
AGREE
STRONGLY AGREE

56. C. Employees in the bank are always willing to help you
Table 4.2.4 C
OBJECTIVE NO. OF RESPONDENTS PERCENT
DISAGREE 14 14%
NEITHER AGREE NOR
DISAGREE
24 24%
AGREE 44 44%
STRONGLY AGREE 18 18%
TOTAL 100 100%
Fig. 4.2.4 C
INTERPRETATION
This chart shows that majority of the respondents were agreed about the statement i.e. 44%.
Among the total respondents,, 14% disagreed,18% strongly agreed and 24% respondents
were neutral. Hence ,this analysis show that employees in the bank are always willing to
help you.
56
14%
24%
44%
18%
NO. OF RESPONDENTS
DISAGREE
NEITHER AGREE NOR
DISAGREE
AGREE
STRONGLY AGREE

57. D. Employees in the bank are never too busy to respond to your request.
Table 4.2.4 D
OBJECTIVE NO. OF RESPONDENTS PERCENT
DISAGREE 13 13%
NEITHER AGREE NOR
DISAGREE
27 27%
AGREE 41 41%
STRONGLY AGREE 19 19%
TOTAL 100 100%
Fig. 4.2.4 D
INTERPRETATION
This chart shows that majority of the respondents agreed about this statement i.e. 41%.
Among the total respondents,, 13% disagreed, 19% strongly agreed and rest 27%
respondents were neutral. Hence, majority of the respondents think that employees in HDFC
Bank are never too busy to respond to your request.
57
13%
27%
41%
19%
NO. OF RESPONDENTS
DISAGREE
NEITHER AGREE NOR
DISAGREE
AGREE
STRONGLY AGREE

58. ASSURANCE DIMENSION OF SERVICE QUALITY
4.2.5 Knowledge and courtesy of employees and their ability to inspire trust and confidence
A. The employees of the bank are trustworthy.
Table 4.2.5 A
OBJECTIVE NO. OF RESPONDENTS PERCENT
DISAGREE 12 12%
NEITHER AGREE NOR
DISAGREE
22 22%
AGREE 46 46%
STRONGLY AGREE 20 20%
TOTAL 100 100%
Fig. 4.2.5 A
INTERPRETATION
This chart shows that majority of the respondents agreed with this statement i.e. 46%.
Among the respondents 12% disagreed, 20% strongly agreed and 22% respondents were
neutral. Hence, majority of the respondents think that employees of the bank are trustworthy.
58
12%
22%
46%
20%
NO. OF RESPONDENTS
DISAGREE
NEITHER AGREE NOR
DISAGREE
AGREE
STRONGLY AGREE

59. B. The behavior of employees in the bank instills confidence in you.
Table 4.2.5 B
OBJECTIVE NO. OF RESPONDENTS PERCENT
DISAGREE 21 21%
NEITHER AGREE NOR
DISAGREE
39 39%
AGREE 30 30%
STRONGLY AGREE 10 10%
TOTAL 100 100%
Fig. 4.2.5 B
INTERPRETATION
This chart shows that majority of the respondents were neutral with this statement i.e. 39%.
Among the total respondents,, 10% strongly agreed, 21% disagreed and 30% respondents
were agreed. Hence, this analysis shows that the behavior of employees in HDFC bank
instills confidence in you.
59
21%
39%
30%
10%
NO. OF RESPONDENTS
DISAGREE
NEITHER AGREE NOR
DISAGREE
AGREE
STRONGLY AGREE

60. C. You feel safe in your transactions with the bank.
Table 4.2.5 C
OBJECTIVE NO. OF RESPONDENTS PERCENT
DISAGREE 10 10%
NEITHER AGREE NOR
DISAGREE
32 32%
AGREE 42 42%
STRONGLY AGREE 16 16%
TOTAL 100 100%
Fig.4.2.5 C
INTERPRETATION
This chart shows that majority of the respondents were agreed with the statement. Among
the total respondents,, 10% disagreed, 16% strongly agreed and rest 32% respondents were
neutral. Majority of the respondents feel safe for their transactions with the bank.
60
10%
32%
42%
16%
NO. OF RESPONDENTS
DISAGREE
NEITHER AGREE NOR
DISAGREE
AGREE
STRONGLY AGREE

61. D. Employees in the bank have the knowledge to answer your questions.
Table 4.2.5 D
OBJECTIVE NO. OF RESPONDENTS PERCENT
DISAGREE 14 14%
NEITHER AGREE NOR
DISAGREE
18 18%
AGREE 42 42%
STRONGLY AGREE 26 26%
TOTAL 100 100%
Fig.4.2.5 D
INTERPRETATION
This chart shows that majority of the respondents were agreed with this statement. Among
the total respondents,, 14% disagreed, 18% were neutral and 26% respondents strongly
agreed. Hence, most of the respondents think that employees in the bank have the knowledge
to answer your questions.
61
14%
18%
42%
26%
NO. OF RESPONDENTS
DISAGREE
NEITHER AGREE NOR
DISAGREE
AGREE
STRONGLY AGREE

62. EMPATHY DIMENSION OF SERVICE QUALITY
4.2.6 Caring and individualized attention that firm provides to its customers.
A. The bank gives you individual attention.
Table 4.2.6 A
OBJECTIVE NO. OF RESPONDENTS PERCENT
DISAGREE 42 42%
NEITHER AGREE NOR
DISAGREE
28 28%
AGREE 20 20%
STRONGLY AGREE 10 10%
TOTAL 100 100%
Fig. 4.2.6 A
INTERPRETATION
This chart shows that majority of the respondents disagreed with this statement. Among the
total respondents,, 10% strongly agreed, 20% were agreed and 28% were neutral. From this
finding it can be concluded that it is unable to give individual attention to its customers.
62
42%
28%
20%
10%
NO. OF RESPONDENTS
DISAGREE
NEITHER AGREE NOR
DISAGREE
AGREE
STRONGLY AGREE

63. B. The bank has operating hours convenient to all its customers.
Table 4.2.6 B
OBJECTIVE NO. OF RESPONDENTS PERCENT
DISAGREE 6 6%
NEITHER AGREE NOR
DISAGREE
28 28%
AGREE 52 52%
STRONGLY AGREE 14 14%
TOTAL 100 100%
Fig.4.2.6 B
INTERPRETATION
This chart shows that majority of the respondents were agreed with this statement. Among
the total respondents,, 6% disagreed, 14% strongly agreed and 28% respondents were
neutral. Hence,this analysis shows that the bank has operating hours convenient to its
customers.
63
6%
28%
52%
14%
NO. OF RESPONDENTS
DISAGREE
NEITHER AGREE NOR
DISAGREE
AGREE
STRONGLY AGREE

64. C. The bank has your interests best at heart.
Table 4.2.6 C
OBJECTIVE NO. OF RESPONDENTS PERCENT
STRONGLY DISAGREE 6 6%
DISAGREE 10 10%
NEITHER AGREE NOR
DISAGREE
20 20%
AGREE 50 50%
STRONGLY AGREE 14 14%
TOTAL 100 100%
Fig. 4.2.6 C
INTERPRETATION
This chart show that majority of the respondents were agreed with this statement. Among the
total respondents 6% strongly disagreed, 10% disagreed, 14% strongly agreed and 20%
respondents were neutral. Hence, this analysis shows that the bank has your interests best at
heart.
64
6%
10%
20%
50%
14%
NO. OF RESPONDENTS
STRONGLY DISAGREE
DISAGREE
NEITHER AGREE NOR
DISAGREE
AGREE
STRONGLY AGREE

65. D. The employees of the bank understand your specific needs.
Table 4.2.6 D
OBJECTIVE NO. OF RESPONDENTS PERCENT
DISAGREE 20 20%
NEITHER AGREE NOR
DISAGREE
35 35%
AGREE 30 30%
STRONGLY AGREE 15 15%
TOTAL 100 100%
Fig. 4.2.6 D
INTERPRETATION
This chart shows that majority of the respondents were neutral with this statement. Among
the total respondents,, 15% strongly agreed, 20% disagreed and 30% respondents were
agreed with this statement. Hence, most of the respondents think that the employees of the
bank understand your specific needs.
65
20%
35%
30%
15%
NO. OF RESPONDENTS
DISAGREE
NEITHER AGREE NOR
DISAGREE
AGREE
STRONGLY AGREE

66. 4.2.7 Are you satisfied with the bank?
Table 4.2.7
OBJECTIVE NO. OF RESPONDENTS PERCENT
DISAGREE 11 11%
NEITHER AGREE NOR
DISAGREE
21 21%
AGREE 48 48%
STRONGLY AGREE 20 20%
TOTAL 100 100%
Fig. 4.2.7
INTERPRETATION
This chart shows that majority of the respondents were agreed with this statement. Among
the total respondents,, 11% disagreed, 20% strongly agreed and 21% respondents were
neutral. Hence, most of the respondents were satisfied with the services of HDFC bank.
66
11%
21%
48%
20%
NO. OF RESPONDENTS
DISAGREE
NEITHER AGREE NOR
DISAGREE
AGREE
STRONGLY AGREE

67. 5.1 FINDINGS
➢ Majority i.e. 34% respondents are a part of HDFC bank for last one year.
➢ Majority i.e. 52% respondents agree that the bank has good equipments.
➢ Among various source of service quality dimensions responsiveness is highest scored
shown by the respondents.
➢ Majority i.e. 52% respondents neither agree nor disagree that the bank physical
features are visually appealing.
➢ Most of the respondents agree that the bank's reception desk employees are neat
appearing that is 36%.
➢ Most of the respondents neither agree nor disagree that the material associated with
the service are visually appealing that is 44%.
➢ Majority i.e. 46% respondents agree that the bank can be said to be reliable.
➢ Majority i.e. 41% respondents agree that the bank insists on error-free records.
➢ Majority i.e. 39% respondents agree that employees in the bank tell you exactly
when the service will be performed.
➢ Majority i.e. 44% respondents agree that the employees in the bank are always
willing to help you.
➢ Majority i.e. 46% respondents agree that the employees of the bank are trustworthy.
➢ Majority i.e. 42% respondents feel safe for their transaction with the bank.
➢ Most of the respondents i.e. 52% agree that the bank has operating how was
convenient to its customers.
➢ Majority i.e. 48% respondents satisfied with banking services.
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68. 5.2 SUGGESTIONS
➢ 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.
➢ 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
desire to serve.
➢ Intangibles please customers just as much as tangibles in the banking industry.
People tend to visit the same branch of a 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.
➢ Learning to understand customers‟ 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 customer oriented, they will, in effect,
become a useful and pleasant way to “shop.”
➢ The five-dimensional structure could possibly serve as a meaningful framework for
tracking a bank’s service quality performance over time and comparing it against the
performance of competitors. Items on some dimensions should be expanded if that is
necessary for reliability.
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69. 5.3 CONCLUSION
Based on the study conducted it can be concluded 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. Customers of the bank are
dissatisfied with the empathy 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 the 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. 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 intense
competition, superior service is the only differentiator left before the banks to attract, retain
and partner with the customers. Superior service quality enables a firm to differentiate itself
from its competition, gain a sustainable competitive advantage, and enhance efficiency.
Thus, improving service quality leads to the customer satisfaction and ultimately to customer
loyalty.
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