1. RETAIL BANKING in HDFC BANK
PROJECT SUBMITTED TO THE UNIVERSITY OF MUMBAI FOR THE
PARTIAL FULFILLMENT OF THE DEGREE OF
BACHELOR OF COMMERCE
BANKING & INSURANCE
BY
MASTER GURPREET SINGH GURMUKH SINGH
ROLL NO - 72014
UNDER THE GUIDANCE OF
MRS. ABHA MAHESHWARI
DEPARTMENT OF COMMERCE
TILAK COLLEGE OF SCIENCE & COMMERCE
NAVI MUMBAI - 400703
YEAR 2016-2017
2. INTRODUCTION
Retail banking also known as Consumer Banking is the provision
of services by a bank to individual consumers, rather than to companies,
corporations or other banks. Services offered include savings and
transactional accounts, mortgages, personal loans, debit cards, and credit
cards.
Retail banking encompasses the services offered to consumers by
commercial banks. The term “retail" refers to the almost storefront-
shopping nature of commercial banking services.
Retail banking is, however, quite broad in nature – it refers to the dealing of
commercial banks with individual customers, both on liabilities and assets
sides of the balance sheet. Fixed, current / savings accounts on the
liabilities side; and mortgages, loans (e.g., personal, housing, auto, and
educational) on the assets side, are the more important of the products
offered by banks. Related ancillary services include credit cards, or
depository services.
Retail banking refers to provision of banking services to individuals and
small business where the financial institutions are dealing with large
number of low value transactions. This is in contrast to wholesale banking
where the customers are large, often multinational companies,
governments and government enterprise, and the financial institution deal
in small numbers of high value transactions.
The concept is not new to banks but is now viewed as an important and
attractive market segment that offers opportunities for growth and profits.
Retail banking and retail lending are often used as synonyms but in fact,
the later is just the part of retail banking. In retail banking all the needs of
individual customers are taken care of in a well-integrated manner.
3. NEED AND IMPORTANCE OF RETAIL BANKING
Traditional lending to the corporate are slow moving along with high NPA
risk, treasure profits are now loosing importance hence Retail Banking is
now an alternative available for the banks for increasing their earnings.
Retail Banking is an attractive market segment having a large number of
varied classes of customers. Retail Banking focuses on individual and
small units. Customize and wide ranging products are available. The risk is
spread and the recovery is good. Surplus deployable funds can be put into
use by the banks. Products can be designed, developed and marketed as
per individual needs.
Today’s retail banking sector is characterized by three basic
characteristics:
Multiple products (deposits, credit cards, insurance, investments and
securities)
Multiple channels of distribution (call center, branch and internet)
Multiple customer groups (consumer, small business and corporate).
SCOPE OF STUDY:
The scope of this research is to identify the banking services of HDFC
Bank. This research is based on primary and secondary data. This study
only focuses on the dimensions of the banking services rather it aims to
understand the skill of the company in the area of retail banking that shows
the areas which require improvement and which are performing well. This
study was done taking two branches of HFDC in Mumbai. The survey was
restricted to the bank customers of HDFC only.
4. OBJECTIVES:
To understand Optimization of retail banking channels.
To explore various schemes and services offeredby HDFC Bank.
To analyze satisfactionlevel of customers forvarious services.
To suggeststrategies for improvementin CustomerService.
To estimate the future growth of Indian retail banking.
5. PRODUCT RANGE OF RETAIL BANKING IN HDFC BANK
New Private sector banks have great resource mobilizing and asset
expansion capabilities which cannot be undermined by the fact these banks
volume. Which have taken decades of option for the old private sector
bank to build. These bank are dominating the market with new product,
services and ideas. Information technology has enabled many private
banks are emerging strong in banking and financial services with the
marketing of new product and service based on technological capabilities.
In the present scenario HDFC bank Ltd. is a fast emerging bank.
Now the emergence of the retail concept of the banking customers are
expecting more and better services. Today customer prefer private banks
because they can have personal relationship with the bank personnel, with
lesser hierarchy and It is possible for these banks to forget closer ties with
customers also.
HDFC Bank provide the following service :-
1. Current A/C
2. Loan
3. Corporate Salary A/C
4. Online A/C
5. Debit Card
6. Phone Banking
7. Intercity/ Inter Branch Banking
8. Net Banking
9. Bill Pay
6. LITERATURE REVIEW
The present study is accordingly, devoted to a detailed probe into the retail
banking inIndia. It also focuses to make a comparative study, on the basis
of quality dimensions,between public sector banks and private sector
banks. The study has set its scope toevaluate the nature, prospects and
challenges as well as organization and working ofretail banking in India.
Before embarking upon the actual conduct of the study, a survey of
availableand pertinent published work on the subject of this study is made
in order to have aninsight into the depth of Retail Banking and also the
specific aspects covered in thework. The Review of Literature presented
below recounts the work so far done in thefield of present study, the nature
of the work, the aspects dealt with as well as briefoutcome emerging from
the studies.
1. Bayel & Janalgie (1994) had set their goals of services quality
dimensions inRetail Banking. First the study investigates & identifies the
services qualitydimensions pertaining to financial services. Secondly, it
examines therelationship between perception accorded to these
dimensions & the overall attitude towards the banking. Thirdly, it examines
the important discriminationin service quality factors among the different
group of banks by pairedcomparison.
2. The market research report by RNCOS (2006), entitled as “Booming
IndianRetail Banking Sector” provides extensive research and rational
analysis of theopportunities, challenges and drivers critical to the growth of
the retailbanking Industry in India. The future overview of the industry in
terms ofasset size, number of financial cardholders and various other
importantfeatures. The future forecastdiscussed the prospects of different
arms ofbanking Industry, including rural banking by bank assurance,
financial cards,mobile banking and role of technology in retail banking,
pension fund and futurecourse of action or strategies for Retail Banking.
3. Capegemini & Efma (2007) in the article entitled as, “Transforming
OperatingModels in Retail Banking” focuses why bank managers went for
transforming operating models, increasing revenue growth, improving
7. customer servicesand cutting costs. The major findings of this article
conducted by survey relateto what Retail Banking operating models look
like today and what drives theirinformation and what these models will look
like in five years in the area ofretail banking operations conducted. The
retail banks managers would focuson five key success factors to globalize
their operating models.Developinginternational governance, ensuring
consistency with market and productstrategy investing upfront in IT
transformation building a very thorough HRvision and focusing on
execution quality.
4. A.B Arnoud (2008) in this article, entitled as, “Review of Competition in
theDutch Retail Banking Sector” presents the details of retail banking
sector inservice quality quoting the model of service in Netherland that has
one of theworld’s most concentrated banking sectors. This document
explores keypractices and regulatory issues for the Dutch Retail Banking
Sector which isfollowing the concept of cross-selling to make consumer
banking profitable.The study in general gives the overall experience of
retail banking consumersegment in the Netherland.
5. Manoj Kamar Joshi (2008) in his article entitled as “Customer Service
inRetail Banking in India” deals with the service aspects of banks in
retailbanking. It attempts to highlight that customerservice of high standard
andquality implemented through the use of modern technologyhelps banks
tosucceed in the competitive world of retail banking. Banks should also
providecomprehensive information to the borrowers with regard to the fees
/ chargeslevied while processing the loans. Banks, by standardizing the
procedures,shall make the customer’s visit to banks hassle free and direct
them to the rightofficials to save the customers from making time-
consuming enquiries.
6. Bahia and Natel (2009) proposed a specific scale, the BSQ (Bank
ServiceQuality) for measuring perceived service quality in retail banking
consisting ofsize dimensions: effectiveness and assurance, access price,
tangibles, serviceportfolio and reliability.
8. LIMITATIONS OF THE STUDY
1. It was difficult to collect data from all over the country on account
ofrestraints of time and finance. Yet best endeavors have been made to
collectlatest information and data from as many sources as have been
possible.
2. The study has used convenience sample. Banks are not willing to share
theinformation about customer’s profile because of privacy policies.
3. As the sample size is very small, geographical and regional differences
couldnot be made.
4. Because of the time constraint, this study includes only few districts
within Mumbai
9. RESEARCH METHODOLOGY
DATA SOURCE:
Primary Data:
The primary data was collected bythe means of a survey. Questionnaires
were prepared and customers of the banks ate two branches were
approached to fill up the questionnaires.The Questionnaires contains 20
questions which reflecton the type and quality of services provided by the
banks to the customers.The response of the customeris recorded on the
grade scale of Agree,Strongly Agree, Uncertain, Disagree and Strongly
Disagree for each question. The filled up information was later analyzed to
obtain the required interpretation and the findings.
SecondaryData:
Inorderto have a proper understanding of the service quality of bank a
depth study was done from the various sources such as books,a lot of data
is also collected from the officialwebsites of the banks and the articles from
various search engines like google,yahoosearch and wiki.com
