1. “Satisfaction Level for Banking Services: A Case
Study of HDFC Bank Customers”
Prepared By:
Nawa Raj Karki
Under supervision of :
Dr. Renuka Sharma
In partial fulfilment of the requirements for the award of degree of
Master of Business Administration
Submitted to :
Chitkara Business School

2. Bank
 Equation (Income = Consumption + Saving)
 Bank is an institution to gather the household saving and channelize
that saving to the deficit unit or section who requires capital or fund.
RBI the Watchdog
RBI was established on 1 April 1935 during the British Raj in accordance
with the provisions of the Reserve Bank of India Act, 1934
The Bank was constituted for the need of following:
To regulate the issue of banknotes
To maintain reserves with a view to securing monetary stability and
To operate the credit and currency system of the country to its advantage.

3. Rates Current Rates
Bank Rate 8.25%
Cash Reserve Ratio (CRR) 4.00%
Statutory Liquidity Ratio (SLR) 23%
Repo Rate under LAF(Liquidity
adjustment Facility)
7.25%
Reverse Repo Rate under LAF * 6.25%
Current Policy Rates
RBI decides these Rates by considering Liquidity, Inflation and Credit
supply in Economy.

4. Types of Risk
Financial Risk Non Financial Risk
Strategic Risk
Operational Risk
Political Risk
Legal Risk
Market RiskCredit Risk
Liquidity Risk
Interest Rate Risk
Exchange rate Risk
Counter Part or
Borrower Risk
Portfolio or
concentration risk
Risk in Banking

5. Banks like HDFC, SBI & ICICI are too big fail
Basel II Integrated Risk Management system
Three Pillars of Basel II
Minimum Capital Requirement
It states the Capital Adequacy that bank should maintain to cover three types of risks
it defined; credit risk, market risk and operational risk. According to the Basel II the
CAR should >8% but in India its 9%.
Supervisory review Process
It sets out the new supervisory review process. It requires financial institutions to
have their own internal process to access their overall capital adequacy ratio in
relation to their risk profile.
Market Discipline
It requires transparency and the obligations of the banks to disclosure meaningful
information to all stakeholders. Clients and shareholders should have sufficient
understanding of activities of banks and the way they manage the risks.

6. Capital Adequacy Ratio
• CAR is also called Capital to Risk (weighted) assets ratio (CRAR), is a ratio of
a bank’s capital to its risk. RBI tracks bank’s CAR to ensure that it can absorb a
reasonable amount of loss and complies with statutory requirements.
Tier 1 Capital +Tier 2 Capital
CAR
Risk Adjusted Assets
Capital elements
Tier 1
(a) Paid-up share capital/common
stock
(b) Disclosed reserves
Tier 2
(a) Undisclosed reserves
(b) Asset revaluation reserves
(c) General provisions/general loan-
loss reserves
(d) Hybrid (debt/equity) capital
instruments
(e) Subordinated debt

7. HDFC Bank an Introduction
Incorporated in 1994 under the name HDFC Bank Limited.
It started its operations after one year of commencement since
January 1995, with the mission to be “World-class Indian Bank”.
Name Designation
C M Vasudev Chairman
Aditya Puri Managing Director
Harish Engineer Executive Director
Paresh Sukthankar Executive Director
Renu Karnad Director
Partho Datta Director
Pandit Palande Director
Bobby Parikh Director
Anami N Roy Director
Keki Mistry Director
Vijay Merchant Additional Director
Management Team HDFC Bank

8. Retail Product Matrix
Accounts and Deposits
Saving Accounts
Salary Accounts
Demat Account
Safe Deposit Locker
Rural Accounts
Loans
Personal Loans
Business loans
Home loan
Car Loans
Two wheelers Loans
Loans against Assets
Educational Loan
Rural Loans
Cards & Forex
Credit Cards
Debit Cards
Prepaid Cards
Credit Card reward program
Travel Solutions
Remittance Products
Other Forex Services
Investments and Insurance
Wealth Service
Investment Products
Life Insurance
Health Insurance
Motor Insurance
Travel Insurance
Home Insurance

9. Business Segmentation
Wholesale
In this segment HDFC Bank targets for big projects and blue-chip companies.
Retail:
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.
Treasury
Within this business, the bank has three main product areas - Foreign Exchange and
Derivatives, Local Currency Money Market & Debt Securities, and Equities.

10. Branch Structure
3Man Branches
Teller, Authorizer and BM– objective cost cutting --- In rural Area
4 Man Branches
PB, teller, PB& Teller Authorizer and BM
5 Man Branches
Like 4 man branches only addition is relationship manager.

11. SWOT Analysis
Competent Human Resources
High Customer Driven system
Popular brand
Wide coverage, also International
presence too
Strengths
High A/c maintenance or
Monthly average balance (MAB)
Weakness
Rising per capita income along with
disposable income
The recent government provision that
bank a/c is mandatory for avail direct cash
subsidy brings more people in formal
banking channel.
The rising standard of rural India and still
out of formal banking system.
Opportunities
Financial industry is dominated by
shadow banking and offering alternative
investment scheme.
Government is considering giving
license to new entity that definitely
snatches the market share.
Basel III implementation will hurt the
profitability as banks are required to
increase their paid up capital for safety of
depositor’s. money
Threats

12. Competitors Analysis
Leader State Bank of India
Challenger HDFC Bank
Followers ICICI, Axis and
others

13. Comparing Mcap
Market Capitalization as on 27th April
2013
Bank M.cap in CRs
SBI 164,975.31
HDFC 164027.85
ICICI 132020.79
Axis 69614.84
Kotak Mahindra 53076.44
IndusInd 23962.05
0.00
20,000.00
40,000.00
60,000.00
80,000.00
100,000.00
120,000.00
140,000.00
160,000.00
180,000.00

14. Net Profit Comparison
Net Profit in CRs
Banks 2012 2011 2010 2009 2008
SBI 11686.9 7370.35 9166.05 9121.23 6729.12
HDFC 5167.09 3926.4 2948.7 2244.94 1590.18
ICICI 6465.26 5151.38 4024.98 3758.13 4157.73
0
2000
4000
6000
8000
10000
12000
14000
SBI
HDFC
ICICI
2008
Net
Profit in
crores
2012 2011 2010 2009

15. Profitability Analysis and Trend Analysis
Year ROA In % EPS
2010 1.53 13.5
2011 1.58 17
2012 1.77 22.1
13.5
17
22.1
0
5
10
15
20
25
2010 2011 2012
EPSinRS.
EPS
2010 2011 2012
1.53
1.58
1.77ROA In %

16. Net NPA and Gross NPA
Year Gross NPA% Net NPA %
2010 1.43 0.31
2011 1.05 0.19
2012 1.02 0.18
1.43
1.05 1.02
0.31
0.19 0.18
0
0.5
1
1.5
2
2010 2011 2012
NPA
Gross NPA% Net NPA %

17. Research
“Satisfaction Level for Banking Services: A Case Study of
HDFC Bank Customers”

18. Research Methodology
Type of Research: Exploratory
Population(N) People who have HDFC Bank a/c
Sample Size(n): 250 Respondents
Sample Design: Convenience
Questionnaire type: Likert Scale
Statistical Tools ; Mean, Percentage & standard Deviation.
Points of Scale Assigned Score
Very Satisfied 5
Satisfied 4
Neither Satisfied Nor Dissatisfied 3
Dissatisfied 2
Very Dissatisfied 1
Likert Scale

19. Objective and Limitations of the Study
Objectives of the Study
•To find out the current customer satisfaction level.
•To find out the weakest facet of Bank that is hurting customer satisfaction.
•To suggest bank to improve where required.
Limitations of the Study
•Respondents are selected on Convenience basis
•The study covers only the satisfaction level among customers who have bank
account in sector 8 branch CHD.

20. Gender No of Respondents %
Male 187 74.8
Female 63 25.2
Total 250 100
Demographic distribution of Respondents
75%
25%
Gender Male Female
Age group
No of
Respondents %
Below 20 13 5.2
20-35 137 54.8
35-60 83 33.2
60above 17 6.8
Total 250 100
5%
55%
33%
7%
AGE Below 20 20-35 35-60 60above
Age group
Gender

21. Education
No of
Respondents %
Diploma and
Below 85 34.4
Graduation 129 51.6
P.G and Above 36 14.4
Total 250 250
0
20
40
60
80
100
120
140
Diploma and
Below
Graduation P.G and Above
Income
Class
No of
Respondents %
0-5 L 187 74.8
5-10 L 56 22.4
Above 10 L 7 2.28
Total 250 100
0
50
100
150
200
0-5 L 5-10 L Above 10 L
Education
Income Class

22. Results and Interpretation
S.N. Dimensions Mean score Standard Deviation
1 Accounts and Deposits 3.48 1.03
2 Investments 3.12 0.97
3 Health Plans 3.32 1.11
4 Loans 3.08 1.22
5 Credit Cards 3.39 1.20
1 Product Features
Accounts and Deposit has the maximum mean that is 3.48, on the contrast the loans of
HDFC bank has got the mean score of 3.08 that shows it is product which is least
preferred by the customers of HDFC Bank.
Similarly, the S.D. of Loans and the S.D. of Investments are highest and lowest in this
product features category. The S.D. shows the consistency in the response of the
customers which participate in this research.

23. S.N
.
Dimensions Mean
score
Standard
Deviation
1 Location of the Branches 4.10 0.93
2 Infrastructure 3.70 1.01
3 Waiting Lounge 3.57 1.06
4 Lolly Pops (Signage’s) 3.4 0.87
5 Parking Facilities 3.32 1.10
2 Infrastructure and Accessibility
Here in the above table the means Score of Location of the bank is highest and the
Parking facilities get the minimum mean scores.
Customers believe the bank is in the right place and people say the parking doesn’t
belong to bank so they still show quite satisfactory response. At the same time the
S.D. of parking facility is highest and the Lolly pop gets the lowest S.D.

24. S.N. Dimensions Mean
score
Standard
Deviation
1 Helpfulness 3.44 1.05
S2 Attentiveness 3.60 0.93
3 Politeness 3.68 0.89
4 Knowledge of the Staff 3.72 0.93
5 Presentation of the Staff 3.72 0.81
6 Honesty and Trustworthiness of the staff 3.60 1.01
7 Preference to the Senior Citizen 3.58 0.84
3 The Level of Customer Satisfaction
The dimension knowledge of the staff and the presentation has
the highest mean score that’s indicates customer feel the staff
have good knowledge and the present in a good manner at same
time they feel they staffs are not helpful enough

25. S.N. Dimensions Mean
score
Standard
Deviation
1 Quick Dealings 3.44 0.88
2 Query Resolve 3.66 0.98
3 Educating Customer 3.64 0.96
4 Desire to listen customer
queries / Complaint
3.60 0.86
5 Satisfactory Closure of a
Compliant
3.52 1.13
4. Efficiency of the Staff
Query resolve has the highest mean score and the Quick
in dealings get sthe low mean score.

26. S.
N.
Dimensions Mean
score
Standard
Deviation
1 A/c Maintenance charges 3.16 0.97
2 Competitive Interest Rate 3.37 0.85
3 Misc. Charges(Instant alert, cheque return or
bounce)
3.34 0.83
4 Service charges on Loan 3.53 0.97
5 Compensation policy- Redressal 3.02 1.02
5. Interest and Charges
The mean score of dimension called competitive interest rate
highest and the compensation policy has the lowest mean
score.

27. S.N
.
Dimensions Mean score Standard
Deviation
1 Net Banking 3.29 1.14
2 Phone Banking 3.60 0.91
3 Mobile Banking 3.67 1.14
6 Ways of banking-Techno Banking
The mean score of e-banking ways are given above among three the
Mobile banking gets the highest and net banking gets the lowest mean
score. The standard deviation of phone banking is lowest among other
two alternatives.

28. Combined mean factor wise
S.N. FACTORS Mean Score
1 Product Features 3.28
2 Infrastructure & Accessibility 3.62
3 The Level of Customer Service 3.62
4 Efficiency of the Staff 3.57
5 Interest and Charges 3.29
6 Techno Banking 3.52

29. Findings:
As per the study suggests people are less satisfied with the charges it charge against
the service, HDFC a big brand but the bank have to act before it is too late while
others bank offering same products in a lower Charges.
The loan product gets lower means score among 38 dimensions which are asked in
the questionnaires that points the bank should give wider range of investment options
and financial education to the customers.
Every dimension of Each factors which ere asked have mean more than three that
shows customers are not dissatisfied but there is lot of room for improvement.

30. Recommendations:
We find some customers are extremely dissatisfied with the staffs’ behaviour so HDFC
Bank can offer the Staffs some courses like behaviour modification and anger
management.
People don’t want lock their money and the HDFC Bank account require to maintain
Rs.10000 MAB that is not suitable for customers. So if it really wants to serve the
bottom of pyramid segment they should lower its MAB it definitely gives bank more
market share.
Staffs who are given target for month should think for years ahead. They are hunting
customers with insufficient knowledge about product the product and services to meet the
short term target.

31. Bibliography
Patanaik Ila, Shah Ajay(2004);interest rate volatility & risk in Indian banking
Tirupathi Kanchu, Kumar Manoj (2013); Risk management in Indian Banking sector:
An empricical study Volume No 2 , ISSN 2277-3622
Fawzi AI-Khatib, Abdullah Al-Khulaifi, Khalid Al-Sulaiti; Banking services and
customer's satisfaction in Qatar :A statistical analysis
Mesay Sata Shanka (2012): Bank Service Quality, Customer Satisfaction andLoyalty in
Ethiopian,Banking Sector: Journal of Business Administration and Management Sciences
Research Vol. 1(1), pp. 001-009
Ayyanar G.(2012); Customers’ Satisfaction in Public and Private Sector Banks and their
Comparison: Vol. 5 (11) Nov. (2012)
Federation Of Indian Chambers Of Commerce & Industry: Indian banking system: the
current state & road ahead
Hdfcbank.com
rbi.org.in
economist.com
financeindiamart.com
allbanking.com

32. Thank you for your Patience!!!