project report on the HDFC BANK LTD.

1.1 GENERAL INTRODUCTION ABOUT THE SECTOR

The Indian economy is emerging as one of the strongest economy of the world with the GDP growth of more than 8% every year. This has given a great support for the development of banking industry in the country .Due to recession it has come down to 5.7%. But market now stabilizing. Due to globalization, competition among the banks has drastically been increased .As India has a substantial upper and middle class income hence the banks have immense opportunities to increase their market shares. The consumer being on the receiving end is in the comfortable position but the banks trying to increase their market share have to continuously add value for consumers in order to increase market share and sustain their growth.

BANKING SECTOR The banking sector is the most dominant sector of the financial system in India. Significant progress has been made with respect to the banking sector in the post liberalization period. The financial health of the commercial banks has improved manifolds with respect to capital adequacy, profitability, and asset quality and risk management. Further, deregulation has opened new opportunities for banks to increase revenue by diversifying into investment banking,

insurance,

credit

cards,

depository

services,

mortgage,

securitization, etc. Liberalization has created a more competitive environment in the banking sector 1 MANAGEMENT STUDIES

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1.2 INDUSTRY PROFILE a) ORIGIN AND DEVELOPMENT OF THE INDUSTRY The origin of banking in India is traceable in ancient time through the modern banking hardly 200 years old. The main function of bank is to accept deposits and grant loans. There is evidence of these functions being performed by a section of the community in the Vedic periods. There are many references of debt in the Vedic literature. During the Ramayana and Mahabharata areas banking, which was a side business during the Vedic period, become a fulltime business activity for the people. During the smriti period, which followed the Vedic period and the Epic age, bankers performed the function of the modern banks. The members of the Vaish community carried on the banking business and Manu speaks of earning through interest as the business of Vaishays. He accepted deposits from the public, granted loans against pledges and personal security, granted simple open loans, acted as bailee for his customers, subscribed to public loans by granting loans to kings, acted as treasurer and banker to the state and managed the currency of the country. Indigenous bankers used to maintain a regular system of accounts and borrowers used to sign the loan deeds.

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Retail banking According to investopedia.com, retail banking is typical mass-market banking where individual customers use local branches of larger commercial banks. Services offered include: savings and checking accounts, mortgages, personal loans, debit cards, credit cards, and so forth.

Types of retail banks Private bank Private Banks is a bank that is not incorporated. Either an individual or a general partner(s) with limited partner(s) owns a non-incorporated bank. In any such case, the creditors can look to both the "entirety of [the bank's] assets" as well as the entirety of the sole-proprietor's/general-partners' assets. These banks have a long tradition in Switzerland, dating back to at least the revocation of the Edict of Nantes (1685).

Commercial banking A commercial bank is a type of financial intermediary and a type of bank. Commercial bank has two possible meanings: Commercial bank is the term used for a normal bank to distinguish it from an investment bank. This is what people normally call a "bank". The term 3 MANAGEMENT STUDIES

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"commercial" was used to distinguish it from an investment bank. Since the two types of banks no longer have to be separate companies, some have used the term "commercial bank" to refer to banks which focus mainly on companies. In some English-speaking countries outside North America, the term "trading bank" was and is used to denote a commercial bank. It raises funds by collecting deposits from businesses and consumers via checkable deposits, savings deposits, and time (or term) deposits. It makes loans to businesses and consumers. It also buys corporate bonds and government bonds. Its primary liabilities are deposits and primary assets are loans and bonds. Detailed information on banks sectoral exposure of credit reveals that over two-thirds of the credits flow has been on account of retail, housing and other priority sector loans. Banks credit flow exposure to large Enterprises continues to remain buoyant with recent indications that credit to agriculture and Micro credit has also picked up. The Investment Banking and Markets division brings together the advisory and financing, equity securities, asset management, treasury and capital markets, and private equity activities of the Group to complete the CIBM structure and provide a complete range of financial products to our clients. Increasingly, ECA financing is being considered by customers and we work closely with our project export finance teams, both onshore and offshore, to provide structured solutions.

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b) GROWTH AND PRESENT STATUS OF THE INDUSTRY Commercial banking can also refer to a bank or a division of a bank that mostly deals with deposits and loans from corporations or large businesses, as opposed to normal individual members of the public (retail banking). as in the Indian banking.. The most prominent on our minds in the context of banking these days, perhaps, are the implications arising out of the Basel II accord. Banks, as we all know, are subjected to more intense regulation as compared to the non-financial firms. This is probably because the banks possess certain 'special' characteristics: Banks are much more leveraged than the other firms due to their capacity to garner public deposits. The asset liability structure of the banks is also different from not only the non-financial firms but also the financial firms. To illustrate, the risk in an insurance company arises mainly from the liability side of the balance sheet in the form of insurance claims whereas for the bank the risk mainly comes from the diminution of asset values (for example, illiquid loans that are not fully recoverable). The deposits which constitute a major part of the liability of banks are repayable on demand, unsecured and their principal amount does not change in value whereas the loans of a bank are illiquid and there can be erosion in the value of loans or of other assets. The liquidity transformation by an insurance company is in the reverse direction as compared to a bank. The

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balance-sheet structure of an insurance company is the least likely to give rise to systemic risk, whereas banks due to their typical asset liability mismatches i.e. long term assets funded by short term liabilities, may be prone to ‘run’ and pose a very high degree of potential systemic risk. The resolution costs of systemic bank insolvencies and significant problems can be substantial. weighted differently. Basel I proposals forced the banks to look at credit risk and regulatory capital more closely than they had done earlier. As banks found ways to arbitrage regulatory capital, some of the provisions of Basel I became less relevant. Simultaneously, banks in the G-10 countries developed newer approaches to manage credit risk by building portfolio models for pricing, provisioning and allocating economic capital for the credit portfolios. These developments made the weaknesses in the Basel I framework more apparent and this set the stage for the creation of 'International Convergence of Capital Measurement and Capital Standards: A Revised Framework', popularly known as Basel II. The Basel

Committee on Banking Supervision has observed that the

fundamental objective in revising the 1988 Accord has been, and I quote, 'to develop a framework that would further strengthen the soundness and stability of the international banking system while maintaining sufficient consistency that capital adequacy regulation will not be a significant source of competitive inequality among internationally active banks. The (Basel) Committee believes that the revised Framework will promote the adoption of

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stronger risk management practices by the banking industry, and views this as one of its major benefits' Unquote

Future of the industry Reflecting on future prospects in banking, immediate focus has to be on the cleaning up of the remnants of undercapitalized banks, while concentrating on improvements in the rural co-operative credit system. It is also necessary to ensure improvements in their governance and financial management. In the banking system as a whole, a healthy credit culture encompassing appropriate pricing, quality of service, financial inclusion and contractenforcement would be vital. The Reserve Bank of India has, in the service of our country, a proven track record and professionalism, which have lent it considerable credibility - both domestically and globally. This credibility enables the RBI to confidently carry the reforms forward to credibly maintain price and financial stability, while enabling self-accelerating equitable growth at elevated levels The Indian financial sector is ready for consolidation, said 95 per cent of the respondents. Given the increased competition, and the implementation of Basel II norms in the near future, the banking industry of the country would be better off with six to seven banks as big as State Bank of India, said the survey. However, voluntary mergers are better than forced ones.

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A majority of the public sector banks also demanded more autonomy to fix salary levels proportionate to performance. In order to improve employee productivity it is essential to offer competitive compensation packages at all levels, the survey said. About 92 per cent of the public sector banks respondents voiced that they do not have sufficient autonomy to offer attractive incentive packages to employees to ensure commitment levels. Some banks also said that in one-year's time, banks should be permitted to issue preference shares. According to the survey, some of the strengths of the banking industry are regulatory systems, economic growth, technological advancement, risk assessment systems and credit quality. Areas that need improvement include diversification of markets beyond big cities, human resources systems, size of banks, high transaction costs, infrastructure and labour inflexibilities. As per the survey some strategies that can help India achieve a world class banking system are consolidation, strict corporate governance norms, regional expansion within the country and outside, higher FDI limits and Free Trade Agreements with countries where India has comparative advantage in banking sector. "Availability and reach of quality products is confined to just big cities. Thus it is essential now to expand the gamut of banking services both within India as well as outside," the survey said. However, banks in India are yet to effectively leverage technology. ICICI Bank has been acknowledged to be among the first to explore new mediums like Internet.

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India has among the lowest penetration of retail loans in Asia. Though the sector has been growing at around 15 per cent, there is still a huge opportunity to tap into. Middle and -high-income homes in India has increased from 1.16 crore (11.6 million) in 1995 to 2.57 crore (25.7 million) in 2002. Interest rates on retail loans have been dropping rapidly too. For instance residential mortgages slumped by 7 per cent over the last four years. "The entry of a number of banks in India in the last few years has helped provide increased coverage and a number of new products in the market," says Kamath.

Sector

Share of GDP %

Growth of Q1 FY 2003 Growth in Q2 FY 2003

Services

56.1

7.4

9.8

Industry

21.8

5.8

6.3

Agriculture

22.1

1.7

7.4

5.7

8.4

GDP

banking sector today is estimated to be at Rs 17 trillion and total deposits are estimated at Rs 13 trillion.

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2.1 ORIGIN OF THE ORGANIZATION The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. HDFC is India's premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1977, the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader in mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities.

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2.2 GROWTH AND DEVELOPMENT OF THE ORGANIZATION HDFC Bank is head quartered in Mumbai. The Bank at present has an enviable network of over 684 branches spread over 316 cities across India. All branches are linked on an online real-time basis. Customers in over 120 locations are also serviced through Telephone Banking. The Bank's expansion plans take into account the need to have a presence in all major industrial and commercial centers where its corporate customers are located as well as the need to build a strong retail customer base for both deposits and loan products. Being a clearing/settlement bank to various leading stock exchanges, the Bank has branches in the centers where the NSE/BSE have a strong and active member base. The Bank also has a network of about over 4000 networked ATMs across these cities. Moreover, HDFC Bank's ATM network can be accessed by all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders. In a milestone transaction in the Indian banking industry, Times Bank Limited (another new private sector bank promoted by Bennett, Coleman & Co./Times Group) was merged with HDFC Bank Ltd., effective February 26, 2000. As per the scheme of amalgamation approved by the shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank.

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2.3 PRESENT STATUS OF THE ORGANIZATION At present HDFC Bank is the leading most bank in the housing and development sector and is growing very fast in the other banking sectors such as life insurance & mutual fund. The authorized capital of HDFC Bank is Rs.450 crore (Rs.4.5 billion). The paid-up capital is Rs.311.9 crore (Rs.3.1 billion). The HDFC Group holds 22.1% of the bank's equity and about 19.4% of the equity is held by the ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue). Roughly 31.3% of the equity is held by Foreign Institutional Investors (FIIs) and the bank has about 190,000 shareholders. The shares are listed on The Stock Exchange, Mumbai and the National Stock Exchange. The bank's American Depository Shares are listed on the New York Stock Exchange (NYSE) under the symbol "HDB. HDFC Limited, Bennett, Coleman & Co. Ltd. and its group companies (the promoters of erstwhile Times Bank Limited) and Chase Funds had entered into tripartite agreement dated November 26, 1999 for effecting amalgamation of Times Bank Limited with the Bank. Under this Agreement, Bennett Coleman Group has a right to nominate one Director on the Board of the Bank as long as its holding exceeds 5% of the share capital of the Bank. Currently, as on March 31, 2007, the Bennett Coleman Group holds 5.15% of the share capital of the Bank and Mr. Vineet Jain represents the group on the Board of the Bank.

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2.4 FUNTIONAL DEPARTMENT OF THE ORGANIZATION

Chairman Managing Director Executive Director

Regional Sales Head Area sales Head

Area Sales Manager Deputy Sales Manager Team Leader

Contract Sales Executive

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2.5 ORGANIZATION STRUCTURE AND ORGANIZATION CHART Chairman

Managing Director & C E O

Joint Managing Director

Joint Managing Director

(Domestic Banking)

(International Business)

Executive Director

Executive Director

Executive Director

Executive Director

Sr. General Managers

General Managers

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2.6 PRODUCT AND SERVICE PROFILE OF THE ORGANIZATION Wholesale Banking Services The Bank's target market ranges from large, blue-chip manufacturing companies in the Indian corporate to small & mid-sized corporate and agribased businesses. For these customers, the Bank provides a wide range of commercial and auctional banking services, including working capital finance, trade services, transactional services, cash management, etc. The bank is also a leading provider of structured solutions, which combine cash management services with vendor and distributor finance for facilitating superior supply chain management for its corporate customers. Based on its superior product delivery / service levels and strong customer orientation, the Bank has made significant inroads into the banking consortia of a number of leading Indian corporates including multinationals, companies from the domestic business houses and prime public sector companies. It is recognized as a leading provider of cash management and transactional banking solutions to corporate customers, mutual funds, stock exchange members and banks.

Retail Banking Services The objective of the Retail Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one15 MANAGEMENT STUDIES

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stop window for all his/her banking requirements. The Bank also has a wide array of retail loan products including Auto Loans, Loans against marketable securities, Personal Loans and Loans for Two-wheelers. It is also a leading provider of Depository Participant (DP) services for retail customers, providing customers the facility to hold their investments in electronic form. HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (VISA Electron) and issues the MasterCard Maestro debit card as well. The Bank launched its credit card business in late 2001. By September 30, 2005, the bank had a total card base (debit and credit cards) of 5.2 million cards. The Bank is also one of the leading players in the "merchant acquiring" business with over 50,000 Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant establishments.

Deposits I.

Savings Account

These accounts are primarily meant to inculcate a sense of saving for the future, accumulating funds over a period of time. Whatever customer occupation, bank is confident that customer will find the perfect banking solution. •

Debit-cum-ATM card

•

Auto Invest Account

•

Internet Banking

•

Phone banking

•

Anywhere Banking

•

Standing Instruction 16

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II.

•

Nomination facility

•

Doorstep service

Special savings account  Comprehensive banking  Solution with added features  Supplementary savings  Ideal for tax-exempt entities  Internet banking  Anywhere banking  Doorstep service  Inward remittance

III.

Senior Citizen Services  Higher interest rates  Special demand loans against deposit  Free collection of outstation cheques drawn on our locations.  Debit-cum-ATM-card  Auto Invest Account  Internet banking  Phone banking  Anywhere banking  Standing instructions 17

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 Nomination facility

IV.

Fixed deposits  Wide range of tenures  Choice of investment plans  Partial withdrawal permitted  Safe custody of fixed deposit receipts  Auto renewal possible  Loan facility available

V.

D-Mat accounts  Free trading account  Online buying and selling of shares  Less documentation  Can control loss of money

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2.7 MARKET PROFILE OF THE ORGANISATION HDFC Bank has its deposit programmes rated by two rating agencies - Credit Analysis & Research Limited. (CARE) and Fitch Ratings India Private Limited. The Bank's Fixed Deposit programme has been rated 'CARE AAA (FD)' [Triple A] by CARE, which represents instruments considered to be "of the best quality, carrying negligible investment risk". CARE has also rated the Bank's Certificate of Deposit (CD) programme "PR 1+" which represents "superior capacity for repayment of short term promissory obligations". Fitch Ratings India Pvt. Ltd. (100% subsidiary of Fitch Inc.) has assigned the "tAAA (ind)" rating to the Bank's deposit programme, with the outlook on the rating as "stable". This rating indicates "highest credit quality" where "protection factors are very high". HDFC Bank also has its long term unsecured, subordinated (Tier II) Bonds of Rs.4 billion rated by CARE and Fitch Ratings India Private Limited. CARE has assigned the rating of "CARE AAA" for the Tier II Bonds while Fitch Ratings India Pvt. Ltd. has assigned the rating "AAA (Ind)" with the outlook on the rating as "stable". In each of the cases referred to above, the ratings awarded were the highest assigned by the rating agency for those instruments?

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Within this business, the bank has three main product areas - Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the liberalization of the financial markets in India, corporate need more sophisticated risk management information, advice and product structures. To comply with statutory reserve requirements, the bank is required to hold 25% of its deposits in government securities.

3.1

STUDENTS WORK PROFILE (Role and Responsibility).

I am working as contract sales executive in HDFC bank; my role is to find out people who want to open savings A/c. I have to convince the customers to open savings account in our bank. After convincing, I use to fill up the forms through customers and collect their documents to login the form for opening their accounts. There are some targets in a month, which we need to reach in bank. I have done many activities like park activities, ATM activities, Apartments activities etc to generate my leads. By doing these activities we get customers for opening accounts. The roles and responsibilities handled by me are: 1) Generating leads for opening accounts 2) Preparing daily sales report of daily activities 3) Answering to customer queries. 4) Verification of the documents given by the customers.

After three month working experience I came to know how to handle the people & task in the organization. Now I feel much confident. Being a sales executive I have to answer to the customers as well as team leader to the queries. I have to fulfill my individual target. 20 MANAGEMENT STUDIES

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3.2 DESCRIPTION OF LIVE EXPERIENCES.

This training has helped me a lot in understanding the realities of the outside world. I also came to know the real meaning of the word marketing. There are both negative and positive experiences of our training. Some of these are: •

Real exposure to the corporate world, which helped me a lot in understanding the mind, set of executives to a certain extent.

•

Learned about customer requirements, customer mind set how to convince others and many.

•

It helped me in improving my communication skills, presentation skills and how to behave in front of public.

•

Apart from these positive experiences I faced certain problems too which I would like to discuss here:

•

It was quite difficult in the beginning to cope with both college studies and job.

•

Initially it took me sometime to understand the process of sales opening, closing, however with time I understood the problem and 21

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worked on it

sincerely. Now I feel much more confident in handling

sales calls.

4.1 STATEMENT OF RESEARCH PROBLEM

The company must gain confidence of the customers and provide services par excellence. Therefore, undertaking the project helps in assessing the customer care level of HDFC BANK. The study is applied descriptive as well as diagnostic in nature.

It also tends to find the customer view about

important aspects of the services. At the same time it was intended to find the customer view about the product and the quality of service improvement. In short this problem can be defined as: “Are customers satisfied with the services at HDFC?” In today’s era of cutthroat competition, it is of an uttermost importance to gain a cutting edge over the competition, and develop a large market share. This is only possible if there is a large customer base for the company.

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4.2 STATEMENT OF RESEARCH OBJECTIVES:

1. To evaluate the perception level of the account holders towards HDFC BANK 2. To study the importance of customer relationship. 3. To study the impact of customer relationship management on bank customers. 4. To analyze the expectations of banking customers. 5. To suggest the banks under study to strengthen the customer relations. 6. To analyze the satisfaction level of customers of HDFC BANK on the following heads:

1. Working environment 2. Customer care 3. Personal care of the customers 4. Bank timings 5. Overall services 6. Special schemes provided

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4.3 RESEARCH DESIGN AND METHODOLOGY. THE METHOD USED OF DATA COLLECTION ARE:  Primary Data  Secondary Data PRIMARY DATA: Primary data are data’s, which are original in nature, and are collected by the researcher. The method used to collect the primary data was Survey Method. The survey method included a structured questionnaire that was given to the respondent. SECONDARY DATA: Secondary data are data, which has been collected and compiled in advance for another needed purpose. Secondary data is an important method to know the present problem faced by the account holders in the field of HDFC BANK. Newspaper, Articles, Books, Magazines etc. have been used to prepare the questionnaire.

PLAN OF ANALYSIS:

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 Calculations have been done for interpretation such as percentages, averages.  The data collected from respondents through questionnaire are organized, coded, processed and tabulated in order to create graphs and charts to make the project understandable. Chi Square Test is performed on the inferred data to arrive at a statistical conclusion.

TOOLS FOR DATA COLLECTION The tool used for data collection is Primarily “Questionnaire method”. The questions contained:

Open- Ended Questions Where the respondent was given a chance to reply or give suggestions to the Company. This included Free Responses questions where the respondents were given the freedom to give suggestions.

Close - Ended Questions Where the respondent was given a lesser chance to reply. This includes multiple Choice Questions where the respondents were given a number of alternatives.

Scales Respondents were given a scale whose positions range from “Highly Satisfied” to “Highly Dissatisfied”

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Area of survey The area selected to find the satisfactory level was in and around Bannerghatta Road.

Sample Unit The sample was considered to be the Customers of HDFC BANK

SAMPLING: Random sampling method to select a sample of 100 customers among the customers of the HDFC BANK.

4.4 ANALYSIS OF DATA As the competition level in the banking sector is ever increasing, it becomes indispensable for the company (HDFC) to conduct the study on the perception and satisfaction level of its customers. This study will help the company in making its new strategies to satisfy its customer in the ways in which he or she wants to be satisfied and to the company its position in the market.

The study on customer satisfaction has the geographical coverage limited to Bannerghatta Road only. This study will help the company to know in detail about the customer perception and their attitude towards the company services and products.

The company will gain the feedback from the

customer to improve its products and quality of service.

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TABLE 1: SHOWING DISTRIBUTION OF AGE

AGE GROUP

NO. OF RESPONDENTS

PERCENTAGE

20 – 30

22

22%

30 – 40

43

43%

40 AND ABOVE

35

35%

TOTAL

100

100%

ANALYSIS

The above table shows that

22% of the respondents fall

under the

age group of 20 – 30 years ,43% of the respondents fall under age group of 30 – 40 years and 35% of the respondents belonging to age group of 40 and above years.

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INFERENCE

Hence it clearly shows that the majority of the respondents fall under the age group of 30 – 40 years i.e. 43%.

CHART SHOWING DISTRIBUTION OF AGE GROUP 50 45 40 35 30 25 20 15 10 5 0

43% 35% 22% 20 - 30 30 - 40 40 and above

20 - 30

30 - 40

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40 and a bove

GRAPH-1

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TABLE 2: SHOWING DISTRIBUTION OF SEX OR GENDER

GENDER

NO. OF RESPONDENTS

PERCENTAGE

FEMALE

43

43%

MALE

57

57%

TOTAL

100

100%

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ANALYSIS

The table shows that there are 57% of male respondents and 43% of female respondents.

INFERENCE

Thus the table clearly shows that the majority of the respondents are male i.e. 57%.

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GRAPH2

TABLE 3: SHOWING THE DISTRIBUTION OF THE MONTHLY HOUSEHOLD INCOME

MONTHLY HOUSEHOLD

NO. OF RESPONDENTS

PERCENTAGE

LESS THAN RS 10,000

0

0%

RS 10,000 – RS 20,000

23

23%

MORE THAN RS 20,000

77

77%

INCOME

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TOTAL

100

100%

ANALYSIS

The above table shows that there are no respondents who have a monthly household income of less than Rs 10,000, there are 23% of the respondents who fall under Rs 10,000 – Rs 20,000 household income and

77%

fall

under the

more

than

Rs 20,000

household

income

category.

INFERENCE The table clearly shows that the majority of the respondents have more than Rs 20,000 of monthly household income, that is 77%.

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GRAPH-3

TABLE

4: SHOWING

THE

IMPORTANCE OF

A

SMILING EMPLOYEE ACCORDING TO A CUSTOMER

IMPORTANCE

NO. OF RESPONDENTS

PERCENTAGE

VERY IMPORTANT

55

55%

SOMEWHAT IMPORTANT

20

20%

NOT SO IMPORTANT

20

20%

NOT AT ALL IMPORTANT

5

5%

TOTAL

100

100%

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ANALYSIS

According to the table 55% of the respondents feel its extremely important for a employee to welcome a customer with a smile,20% respondents think its somewhat important while 20% feel its not so important and 5% think its not at all important.

INFERENCE

Hence when a customer enters the bank , he looks for a smiling employee to

welcome him, its

extremely

important to him(55%

respondents think its very important).

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of

CHART SHOWING THE IMPORTANCE OF A SMILING EMPLOYEE 60%

55%

GRAPH-4

50% 40% 30%

20%

20%

very important

20%

10%

5%

0%

somewhat important not so important

TABLE 5: SHOWING THE IMPORTANCE OF THE SIZE OF THE CHEQUE BOOK ACCORDING TO THE CUSTOMERS IMPORTANCE

NO. OF RESPONDENTS

PERCENTAGE

VERY IMPORTANT

20

20%

SOMEWHAT IMPORTANT

45

45%

NOT SO IMPORTANT

30

30%

NOT AT ALL IMPORTANT

5

5%

TOTAL

100

100%

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ANALYSIS

The table shows that according to the 20% of the respondents its very important

that

the

cheque

book

size

is

appropriate,30%

of

the

respondents think its not so important, 5% of the respondents think its not at all important while 45% of the respondents think its somewhat important.

INFERENCE

Hence the table clearly shows that the majority of the respondents think

its

somewhat

important

for

the

cheque

book

size

to

appropriate.

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be

CHART SHOWING THE IMPORTANCE OF THE SIZE OF THE CHEQUE BOOK 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

Series1

GRAPH-5

TABLE 6: SHOWING THE IMPORTANCE OF THE BANK TIMING ACCORDING TO THE CUSTOMERS IMPORTANCE

NO.OF RESPONDENTS

PERCENTAGE

VERY IMPORTANT

65

65%

SOMEWHAT IMPORTANT

20

20%

NOT SO IMPORTANT

15

15%

NOT AT ALL IMPORTANT

0

0%

TOTAL

100

100%

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ANALYSIS

The above table relates that the 65% of the respondents think its extremely important for the bank timing to be convenient,20% of the respondents think its somewhat important,15% of the respondents think its not so important while none of them think its not at all important.

INFERENCE

Table number 7 clearly shows that majority of the customers think that its very important that the bank timings are convenient i.e. 65%

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CHART SHOWING THE IMPORTANCE OF THE BANK TIMING 100% 0%

Seri…

TABLE 7: SHOWING THE IMPORTANCE OF THE ( ZERO BALANCE SAVINGS ACCOUNTS ) FACILITY ACCORDING TO THE CUSTOMERS IMPORTANCE

NO.

OF PERCENTAGE

RESPONDENTS VERY IMPORTANT

80

80%

SOMEWHAT IMPORTANT

20

20%

NOT SO IMPORTANT

0

0%

NOT AT ALL IMPORTANT

0

0%

TOTAL

100

100%

ANALYSIS

According to the table above none of the respondents think its not at all or not so important that the ZERO BANLANCE CURRENT ACCOUNT

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SHOULD be provided, while 80% of the respondents think its very important and 20% of the respondents think its somewhat important.

INFERENCE

Hence the table clearly shows that the majority of the customers think its very important that the ZERO BALANCE SAVINGS ACCOUNT facility should be provided that is 80%.

CHART SHOWING THE IMPORTANCE OF THE ZERO BALANCE SAVINGS ACCOUNT FACILITY 100%

GRAPH-7

80% 60%

very important

40%

somewhat important

20% 0% very somewhat not so not at all important important important important

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TABLE

8:

SHOWING

THE

IMPORTANCE

TRANSACTION TIMING IN HDFC

OF

BANK ACCORDING

TO CUSTOMRES VARAIBLES

RESPONDENTS

PERCENTAGE

HIGHLY SATISFIED

10

10%

SATISFIED

62

62%

NEUTRAL

23

23%

DISSATISFIED

5

5%

HIGHLY DISSATISFIED

0

0%

100

100%

ANALYSIS From the above table , it can be analyzed that out of 100 respondents 10% only are highly satisfied with the Transaction timing of the Bank , 62% of them are satisfied , 23% of them are on the neutral side . Moreover 5% of them are dissatisfied and none are highly dissatisfied.

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INFERENCE Therefore, it can be inferred that almost 5% of the respondents are not happy with the time taken for transaction . This indicates that the customers are not satisfied with the speed of the transaction .

70% 60% 50% 40% 30% 20% 10% 0%

CHART ON SATISFACTION LEVEL REGARDING TRANSACTION TIMING 62%

HIGHLY SATISFIED

23% 10%

5%

0%

SATISFIED

GRAPH-8

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TABLE

9:

SHOWING

THE

IMPORTANCE

OF

CUSTOMER CARE IN HDFC BANK ACCORDING TO CUSTOMRES VARAIBLES

RESPONDENTS

PERCENTAGE

HIGHLY SATISFIED

12

12%

SATISFIED

63

63%

NEUTRAL

21

21%

DISSATISFIED

4

4%

HIGHLY DISSATISFIED

0

0%

TOTAL

100

100%

ANALYSIS

The above table shows that out of 100 respondents 12% are highly satisfied with the Customer Care of the HDFC Bank, 63% of them are satisfied and 21% are neutral, moreover 4% of them are dissatisfied and none of them are highly dissatisfied.

INFERENCE 43 MANAGEMENT STUDIES

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In today’s world customer care is one of the most important criteria as it helps the organization to retain their or add market share . Therefore , HDFC should work towards the 4% dissatisfied customers either by training the employees or making the procedure customer friendly

80% 60% 40% 20% 0%

CHART ON SATISFACTION LEVEL REGARDING CUSTOMER CARE

63%

12%

21%

HIGHLY SATISFIED

4%

0%

SATISFIED

GRAPH-9

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TABLE 10: SHOWING THE IMPORTANCE OF HDFC BANK SERVICE ACCORDING TO CUSTOMRES VARAIBLES

RESPONDENTS

PERCENTAGE

EXCEPTIONALY SATISFIED

54

54%

SATISFIED

40

40%

NEUTRAL

6

6%

ANALYSIS

The

above

table

shows

that

out

of

exceptionaly satisfied with the Service

100

respondents

54%

are

of the HDFC Bank, 40% of

them are satisfied and 6% are neutral.

INFERENCE In today’s world Bank Service is one of the most important criteria as it helps the organization to retain their or add market share . Therefore , HDFC should work towards the 6% neutral customers either by training the employees or making the procedure customer friendly

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4.5 SUMMARY OF FINDINGS

 Most of the customers of the bank are satisfied, but there is a minority of customers who are still looking for improvement in this aspect of service area as well in the field of working environment.  One area of strength of the bank which it can really boast off as most of

the customers are satisfied when it comes to customer care.  Overall the result of survey has shown a positive sign for the overall services from where on they can increase their customer base with the exception of a few dissatisfied customers which needs to be looked after.  The bank has caused a lot of inconvenience to the customers regarding its banking hours as shown from the

result of the

survey. Flexible banking hours should be achieved to attain higher customer satisfaction again lot of them are even satisfied .  There is a mixed response when it comes to transaction time. A certain

section or respondents seem to be satisfied but a substantial number of customers are looking for faster transaction time.

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V.1 SUMMARY OF LEARNIG EXPERIENCE. I went through a good learning practice in my HDFC Bank for the past eight months which has developed me to heights of understanding the customers mind as well their taste and preferences in the field of services sector. The uncertain world or market structure existing in India has very typical way of expectation when it comes to private bank and the banks have realized their needs and desires and working towards satisfying their requirements and my bank is also in its run for customer satisfaction The working environment was excellent which enabled me to learn the products and services features as well as the internal aspects of management level in my bank. This project has opened up the new window of learning, which enables me into the clear understanding of corporate world The proper understanding of customers is must when it comes to service industry and that exactly what I went through in this period of management training period.

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V.2 CONCLUSIONS AND RECOMMENDATIONS.

CONCLUSION

Hence, I conclude by understanding that marketing concepts is essentially about the few things which contribute to the banks success:

•

The bank cannot exist without customer.

•

The purpose of a bank is to create, win and keep a customer. The customer is and should be the central focus of everything the bank does.

•

Ultimate aim of a bank is to deliver satisfaction to the customers.

•

Customer satisfaction is affected by the performance of all the personnel of the bank.

It is also a way of organizing the bank. The starting point for the organizational design should be the customer and the bank should ensure that the services are performed and delivered in the most effective way. Service facility should also be designed for customer convenience.

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RECOMMENDATIONS

The environment of the bank can be made more customers friendly and the working of the bank should be more organized and efficient by training the employees of the bank. 2. Improving customer care facilities by providing 24 hours banking facilities more effective. 3. More number of CURRENT ACCOUNTS With different features are looked forward from public. 4. Proper and general insturuction about the maintenance and working of current account and its benefits should be made clearer. 5. The banking hours should be more customers friendly it should close little later in the evening. 6. The banking process needs to be more systematic so that the transaction time can be reduced. 7. There should be more branches especially in smaller towns and cities .

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8. Special schemes should be provided for smaller retail shops as well new package of offers and discounts should be provided for high network people and senior citizens .

ANNEXURE 5.4 QUESTIONNAIRE 1. Name

______________________________________

2. Age

 20-30  30-40  40<

3. Gender

 Male  Female

4. Marital Status

 Married

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 Single

5. Income Level

 Rs.20, 000

6. How important is it for an employee to greet you with a smile?

 Very important  Somewhat important  Not so important  Not at all important

7. How important is the size of cheque book to you?

 Very important  Somewhat important  Not so important 52 MANAGEMENT STUDIES

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 Not at all important

8. How important are the bank timings according to you?

 Very important  Somewhat important  Not so important  Not at all important

9. How important are the ZERO BALANCE CURRENT ACCOUNT facility provided by HDFC to you?

 Very important  Somewhat important  Not so important  Not at all important

10. What is your level of satisfaction with respect to the transaction timing of the bank?

 Highly satisfied 53 MANAGEMENT STUDIES

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 Satisfied  Neutral  Dissatisfied  Highly dissatisfied

11. What is your level of satisfaction with respect to customer care measures undertaken by the bank?

 Highly satisfied  Satisfied  Neutral  Dissatisfied  Highly dissatisfied

12. What is your level of satisfaction with respect to the quality of overall service provided by the bank?

 Highly satisfied  Satisfied

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 Neutral  Dissatisfied  Highly dissatisfied

13. What is your level of satisfaction with respect to special schemes offered by

the

bank?

 Highly satisfied  Satisfied  Neutral  Dissatisfied  Highly dissatisfied

14. What is your level of satisfaction with respect to the response time for grievance handling?

 Highly satisfied  Satisfied  Neutral

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 Dissatisfied  Highly dissatisfied

15. What is your level of satisfaction with respect to the cheque book facility provided by the bank?

 Highly satisfied  Satisfied  Neutral  Dissatisfied  Highly dissatisfied

16. What is your level of satisfaction with respect to flexibility of operation?

 Highly satisfied  Satisfied  Neutral  Dissatisfied 56 MANAGEMENT STUDIES

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 Highly dissatisfied

BIBLIOGRAPHY

BOOKS AND MAGAZINES 1) Tull S. Donald et al Hawkins I. Del --Marketing Research

Measurement &

th

Methods 6 edition Published by Asoke K. Ghosh , Prentice-Hall of India pvt. Ltd. 2) Cooper R. Donald et al Schindler S.Pamela –Business Research Method logy 2006 edition Published by TATA McGraw HILL Publishing Company limited

India Today Business world, Economic Times, Business world , Money regulator and Business Line

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NEWSPAPERS The Times of India The Economic Times Business Standard

INTERNET www.hdfcbank.com www.google.com

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