In the partial fulfillment of the Degree requirement towards the MASTER OF BUSINESS ADMINISTRATION (MBA)
SESSION (2008-2010) Submitted By: VARUN BAWA MBA-(3rd sem) Roll No. 81407317174 Faculty Guide: Sr. Lect. Arti Mehta CTIMIT Jalandhar



I hereby declare that project entitled “ CUSTOMER SATISFACTION REGARDING HDFC BANK” submitted to PUNJAB TECHNICAL UNIVERSITY, JALANDHAR in partial fulfillment of the requirement for Master Degree of business administration (SEM –IIIrd) is my original work. It is by my own and not copied one from other.

VARUN BAWA MBA 3RD SEM 81407317174 Dated: ___________




This is to certify that the survey entitled, “CUSTOMER SATISFACTION REGARDING HDFC BANK” submitted in partial fulfillment of the requirement for the award of degree of Masters of Business Administration (MBA) from Punjab Technical University, Jalandhar is a bonafide summer training project work carried out by VARUN BAWA, under my supervision and guidance and to the best of my knowledge and information, no part of summer training project work has been submitted for any other degree or diploma.

Sr. Lect. Arti Mehta



Acknowledgement This project report bears the imprint of those who had rendered their wholehearted support and encouragement without whose help this effort of mine would be in vain. I am also thankful to Mr. VARUN BAWA 4 . I express my deep sense of gratitude and sincere thanks to my project guide Sr. I thankful to the employees of HDFC Bank for assisting me in the timely completion of project. suggestion and information provided which were of utmost importance for the successful completion of the project.Lect. I also thank to my family and my friends those helped me in my training period and in the completion of project. Rajiv Bhatia for his proper guidance. At last. Arti Mehta for his directions.

management education is meaningless so long with the theory. The summer training is an integral part of the course curriculum of Master of Business Administration (M. In this the student is in the position to analyze the integral working of an organization with mature eyes and understand the dynamics in a much better manner. The research study was limited to Gurdaspur. 3rd). better packaging and improved customer service. Competitors must segment the market carefully to arrive at appropriate products 5 . both in print as well as in other media.PREFACE Without practical training.A. I have contacted the respondents through personal interviews with the help of questionnaires. Opening up the sector will certainly mean new products. Potential buyers for most of Banks lie in the middle class. company profile and products of HDFC Bank are given. The main objective of the research is to know the customer satisfaction level and their perception regarding HDFC Bank and to know the customer awareness regarding the HDFC Bank’s products. Such training provides a framework of knowledge relating to the concepts and practices of the assigned topics in the organization. Here. there is a introduction of Banking. After that a market research is performed with a sample size of 100 people. practical training is provided to management students to expose them to the actual working environment of any organization. Both new and existing players will have to explore new distribution and marketing channels. This particular project has been conducted at HDFC Bank.B. in my survey. In the first phase of the research project. HDFC Bank should lay more stress on advertisements.

Recognizing the potential. the nationalized Banks have already begun to target niches like pensions. This study was conducted to find out the customer satisfaction regarding HDFC bank. And awareness of customers about different types of products and services offered by HDFC Bank. EXECUTIVE SUMMARY The report contains the organizational study done at HDFC Bank. Safety and returns are the two main reasons people invest in banks. Axis. a fair bit of advertising and modifications to the existing product portfolio. . On the whole HDFC bank is a good place to work at. HDFC must advertise regularly and create brand value for its products and services. kotak Mahindra and nationalized banks use television advertisements to promote their products. in the past three years. 6 . which is targeted to the different persons in Gurdaspur. The report gives an overview of the banking Sector and company profile. children and rural peoples. The Indian consumer has a false perception about private banks – they feel that it would not safe. This training enables an advisor/sales manager to market the policies better.and pricing. For this purpose sample size of 100 was taken. Every new recruit is provided with extensive training on the products of HDFC. The company should try to create awareness about itself in India. With an improvement in the sales techniques used. women. The report title is “CUSTOMER SATISFACTION REGARDIND HDFC BANK”. The methodology adopted for the study was through a structured questionnaire. HDFC would be all set to capture the banking market in India as it has around the globe. The data collected from the different persons was analyzed thoroughly and presented in the form of charts and tables. Most of its competitors like ICICI.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Subject Covered Introduction to the study Introduction to the Banking History of Banking in India Banking structure in India Indian Banking Industry Upcoming Foreign Banks in India HDFC BANK Company Profile Key Executives Technology used in HDFC Bank Products and customer segments Business strategy Inside HDFC Bank Human resource Rupees earned-Rupees spend Recent development Page No. 1 2 3-4 5 6 7 8 9-10 11 12 13-16 17 18-22 23 24 25-26 7 . No.CONTENTS Sr.

17 18 19 20 21 22 23 24 25 26 Achievements in 2009 SWOT Analysis Objectives Research methodology Data analysis & interpretation Findings Suggestions Limitations Conclusion Bibliography 28 29-30 31 32-33 34-51 52 53 54 55 56 8 .

Customers have a right to quality services that deliver outcomes. Organizations that strive beyond minimum standards and exceed the expectations of their customers are likely to be leaders in their sector. Customers in human services are commonly referred to as service users. Customer centric organizations will:  Determine the customer’s expectations when they plan listen to the customer as they design. consumers or clients. The level of satisfaction is determined not only by the quality and type of customer experience but also by the customer’s expectations.INTRODUCATION TO THE STUDY ℘ What is customer satisfaction? Customer satisfaction refers to how satisfied customers are with the products or services they receive from a particular agency. 9 • .  Focus on the delivery of customer service activities value customer feedback when they measure performance. planning and service delivery. An organization with a strong customer service culture places the customer at the centre of service design. A customer may be defined as someone who • • has a direct relationship with. or is directly affected by your agency and Receives or relies on one or more of your agency’s services or products. ℘ Why is it important? There are a number of reasons why customer satisfaction is important in Banking Sector: • Meeting the needs of the customer is the underlying rationale for the existence of community service organizations. They can be individuals or groups.

but nationalised banks are still service oriented in extending loans for Education loan. INTRODUCATION TO BANKING Banking means accepting the deposits from the customers for lending to the needy and extending the other services as to issue of dd etc.nowadays after introduction of private sector banks the banks have become a profit centre and the functions become changed and now banks are doing the insurance and mutual funds also. A Bank is an organization which lends money to the borrowers for a purposeful task. and rural development activities.• Customers are recognized as key partners in shaping service development and assessing quality of service delivery. 10 . and provides a facility to deposit and withdraw money when needed and charge for it. The process for measuring customer satisfaction and obtaining feedback on organizational performance are valuable tools for quality and continuous service improvement.

it nationalised Imperial Bank of India with extensive banking facilities on a large scale especially in rural and semi-urban areas. Bank of Baroda. 23 of 1965). As an aftermath deposit mobilisation was slow. Reserve Bank of India came in 1935. 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. 11 . Punjab National Bank Ltd. During those days public has lesser confidence in the banks. To streamline the functioning and activities of commercial banks. and Bank of Mysore were set up. mostly small. the Government of India came up with The Banking Companies Act. Moreover. Between 1906 and 1913. Central Bank of India. Indian Bank. Phase II Government took major steps in this Indian Banking Sector Reform after independence. Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. Canara Bank.HISTORY OF BANKING IN INDIA Phase I The General Bank of India was set up in the year 1786. There were approximately 1100 banks. These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks. funds were largely given to traders. In 1865 Allahabad Bank was established and first time exclusively by Indians. mostly Europeans shareholders. Bank of India. was set up in 1894 with headquarters at Lahore. Reserve Bank of India was vested with extensive powers for the supervision of banking in India as the Banking Authority. 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. Abreast of it the savings bank facility provided by the Postal department was comparatively safer. During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948. The East India Company established Bank of Bengal (1809). In 1955. Next came Bank of Hindustan and Bengal Bank.

under the chairmanship of M Narasimham. The following are the steps taken by the Government of India to Regulate Banking Institutions in the Country: 1949: Enactment of Banking Regulation Act. a committee was set up by his name which worked for the liberalisation of banking practices. Time is given more importance than money. 14 major commercial banks in the country were nationalised. 1969. Phase III This phase has introduced many more products and facilities in the banking sector in its reforms measure. 12 . Second phase of nationalisation Indian Banking Sector Reform was carried out in 1980 with seven more banks. The country is flooded with foreign banks and their ATM stations. 1961: Insurance cover extended to deposits. In 1991. This is all due to a flexible exchange rate regime. the foreign reserves are high. It was the effort of the then Prime Minister of India. Banking in the sunshine of Government ownership gave the public implicit faith and immense confidence about the sustainability of these institutions. 1980: Nationalisation of seven banks with deposits over 200 crore. It is sheltered from any crisis triggered by any external macroeconomics shock as other East Asian Countries suffered. Efforts are being put to give a satisfactory service to customers. The entire system became more convenient and swift. 1971: Creation of credit guarantee corporation. 1955: Nationalisation of State Bank of India. 1959: Nationalisation of SBI subsidiaries. the branches of the public sector bank India rose to approximately 800% in deposits and advances took a huge jump by 11. This step brought 80% of the banking segment in India under Government ownership. The financial system of India has shown a great deal of resilience. major process of nationalisation was carried out. and banks and their customers have limited foreign exchange exposure.Seven banks forming subsidiary of State Bank of India was nationalised in 1960 on 19th July. the capital account is not yet fully convertible. Indira Gandhi.000%. Mrs. Phone banking and net banking is introduced. After the nationalisation of banks. 1975: Creation of regional rural banks. 1969: Nationalisation of 14 major banks.

BANKING STRUCTURE IN INDIA Scheduled Banks in India (A) Scheduled Commercial Banks Public sector Banks (28) • Nationalized Bank • Other Public Sector Banks (IDBI) • SBI and its Associates Private sector Banks (27) Foreign Banks in India (29) Regional Rural Bank (102) (B) Scheduled Cooperative Banks 13 .

rising income levels. The Public sector banks are facing a stiff competition from the new private sector banks. In correlation with the growth of the economy. INDIAN BANKING INDUSTRIES The Indian banking market is growing at an astonishing rate. 14 . and affordability of banking products are promising factors for continued expansion. The banks which have been setup in the 1990s under the guidelines Of the Narasimham Committee are referred to as NEW PRIVATE SECTOR BANKS. and technological innovations are all Contributing to this growth. there are 27 private sector banks in the banking Sector: 19 old private sector banks and 8 new private sector banks. with Assets expected to reach US$1 trillion by 2010. middle class.Scheduled Urban Cooperative Banks (55) Scheduled State Cooperative Banks (31) Here we more concerned about private sector banks and competition among them. increased standard of living. Today. These new banks have brought in state-of-the-art technology and aggressively marketed their products. An expanding Economy. The country’s middle class accounts for over 320 million people.

analyst in Celent's banking group and author of the report.The Indian banking Industry is in the middle of an IT revolution. Banks are now realizing the importance of being a big player and are beginning to focus their attention on mergers and acquisitions to take advantage of economies of scale and/or comply with Basel II regulation. Players are becoming increasingly customer centric in their approach.” says Prathima Rajan. Among them is the world's best private bank by Euro Money magazine." UPCOMING FOREIGN BANKS IN INDIA By 2009 to 2010 few more names is going to be added in the list of foreign banks in India. The following are the list of foreign banks going to set up business in India:- • • • • • • • • • Royal Bank of Scotland Switzerland's UBS US-based GE Capital Credit Suisse Group Industrial and Commercial Bank of China 15 . This is as an aftermath of the sudden interest shown by Reserve Bank of India paving roadmap for foreign banks in India greater freedom in India. which has resulted in innovative methods of offering new banking products and services. Switzerland's UBS. focusing on the expansion of retail and rural banking.“The banking industry should focus on having a small number of large players that can compete globally rather than having a large number of fragmented players. “Indian banking industry assets are expected to reach US$1 trillion by 2010 and are poised to receive a greater infusion of foreign capital.

India. a strong market reputation. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. as part of the RBI's liberalization of the Indian Banking Industry in 1994. Since its inception in 1977. HDFC was ideally positioned to promote a bank in the Indian environment. HDFC is India’s premier housing finance company and enjoys an impeccable track record in India as well as in international markets.WE UNDERSTAND YOUR WORLD 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. Its outstanding loan portfolio covers well over a million dwelling units. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited'. with its registered office in Mumbai. With its experience in the financial markets. 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. the Corporation has maintained a Consistent and healthy growth in its operations to remain the market leader in mortgages. 16 . large shareholder base and unique consumer franchise.

the Bank is proud to say that it is well on its way towards that goal. COMPANY PROFILE STRONG NATIONAL NETWORK HDFC BANK 17 . Today.” It realized that only a single minded focus on product quality and service excellence would help us get there.HDFC Bank began operations in 1995 with a simple mission to be a “World Class Indian Bank.

bill payments. Against the regulatory approvals for new branches in hand. The company was founded in 1994 and is based in Mumbai. such as mutual funds and insurance. 2008.HDFC bank ltd provides various financial products and services. The Treasury Services segment operates primarily in areas. and regional rural banks. central and state government departments.7 million and total cards issued (debit and credit cards) increasing from 7 million to 9.142 branches And 3.2 million.605 ATMs in 316 cities as of March 31.2 million to 8. In addition. and demat accounts. personal. it provides correspondent bank services to cooperative banks. including savings Accounts. and money Market. It offers deposit and transaction banking products. and foreign exchange products. commercial vehicle. debit cards. gold. During the year. Supply chain financing. and Institutional customers. money market. agricultural loans. foreign banks. depository. It also offers Auto. 2009 HDFC bank had a network of 1. Whilst credit growth in the banking system 18 . loans Against securities and property and health care finance Working capital finance. cash management. the Bank stepped up retail customer acquisition with deposit accounts increasing from 6. and Treasury. as well as credit cards. the Bank’s distribution network was at 761 Branches and 1977 ATMs in 327 cities as against 684 branches and 1. fixed deposits. and electronic banking. As of March 31. In addition. investment Advisory. the Bank expects to further expand the branch network by around 150 branches by June 30. such as foreign exchange. custodial. non-fund facilities. and educational loans. Public sector undertaking. home. and Equities. The wholesale banking Segment provides loans. and warehouse Receipt loans. supply chain. working capital and term finance. tax collection. this segment Sells third party financial products. The Retail banking segment provides various deposit products. construction equipment finance. March 2006 Cities Branches ATM’s 228 535 1323 March 2007 316 684 1605 March 2008 327 761 1977 March 2009 528 1142 3295 As of March 31. as Well as distributes life and general insurance products through its tie-ups with insurance companies and mutual fund houses. This segment’s services include trade services.295 automated teller machines in 528 cities in India. It operates in three segments: Retail Banking. private banks. interest rate trading. India. emerging corporate. and transactional services. current accounts. and funded non-funded treasury. and transaction services to large Corporate. Wholesale Banking. small and medium enterprise. 2008. 2007.

Portfolio quality as of March 31. Member of Premises Committee. The transactional banking business also registered healthy growth with cash management volumes increased by around 80% and trade services volumes by around 40% over the previous year.1% with retail advances growing by 38. the Bank’s net advances grew by 35. Member of Fraud Monitoring Committee. KEY Deepak Parekh Executive Chairman Aditya Puri EXECUTIVES Managing Director. Director. implying a higher market share in both segments. Harish Engineer 19 . 2008 remained healthy with gross nonperforming assets at 1.3% and net non-performing assets at 0.slowed down to about 22% for the year ended 2008-09.4% of total customer assets. Member of Credit Approval Committee and Member of Risk Monitoring Committee Adil Patrawala Chief Operating Officer of HDFC Securities Limited and Whole time Director of HDFC Securities Limited Sunil Shah Managing Director of HDFC Securities Limited and Director of HDFC Securities Limited.6% and wholesale advances growing by 30%. Member of Investors Grievance (Share) Committee.

New technology changed the mind of the customers and changed the queue concept from the history banking transaction.Head of Wholesale Banking. As we know that Information Technology plays the vital role in the each and every industry and gives the optimum return from the limited resources. Today there are different channels are available for the banking transactions. Market Risk & Investor Relations. Treasury TECHNOLOGY USED IN HDFC BANK In the era of globalization each and every sector faced the stiff competition from their rivals and world also converted into the flat from the globe. more and more changes are taking the part into it. That are create competition between the private sector banks and public sector bank. Executive Director and Member of Customer Service Committee. There are 20 . After the policy of liberalization and RBI initiatives to take the step for the private sector banks. Banks are service industry and today it gives the innovative Technology application to Banking industries. HDFC BANK is the leader in the industries and today IT and HDFC BANK together combined they reached the sky. Paresh Sukthankar Head of Credit. Executive Director and Member of Risk Monitoring Committee. Debajeet Das VP. Private sector banks are today used the latest technology for the different transaction of day to day banking life.

drastically changes seen in the use of Internet banking. Centralized Processing Units Electronic Processing Straight Through Derived Economies of Scale Reduced Transaction Cost Improve cost efficiency. This type of technology gives the freedom to retail customers. Cross sell Provide new or superior products Data Warehousing . New private sector banks to withstand the competition from public sector banks came up with innovative products and superior service. HDFC BANK PRODUCT AND CUSTOMER SEGMENTS PERSONAL BANKING Loan Product • • • • • • Auto Loan Loan Against Security Loan Against Property Personal loan Credit card 2-wheeler loan Deposit Product • • • • • Saving a/c Current a/c Fixed deposit Demat a/c Safe Deposit Lockers Investment & Insurance • • • • • • • Mutual Fund Bonds Knowledge Centre Insurance General and Health Insurance Equity and Derivatives Mudra Gold Bar 21 . CRM Innovative Technology Application HDFC BANK is the very consistent player in the new private sector banks. in a year 2001 (2%) and in the year 2008 (25%).

• • • • • • • • • Commercial vehicles finance Home loans Retail business banking Tractor loan Working Capital Finance Construction Equipment Finance Health Care Finance Education Loan Gold Loan Cards • • • Credit Card Debit Card Prepaid Card Payment Services • • • • • • • • • • NetSafe Merchant Prepaid Refill Billpay Visa Billpay InstaPay DirectPay VisaMoney Transfer e–Monies Electronic Funds Transfer Online Payment of Direct Tax Access To Bank • NetBanking • OneView • InstaAlert Mobile Banking • ATM • Phone Banking • Email Statements • Branch Network -------------------------------Forex Services -------------------------------• Product & Services • Trade Services • Forex service Branch Locater • RBI Guidelines WHOLESALE BANKING Corporate Small and Medium Enterprises Financial Institutions and Trusts 22 .

• • • • Funded Services Non Funded Services Value Added Services Internet Banking • • • • • Funded Services Non Funded Services Specialized Services Value added services Internet Banking BANKS • Clearing Sub-Membership • RTGS – sub membership • Fund Transfer • ATM Tie-ups • Corporate Salary a/c • Tax Collection Financial Institutions Mutual Funds Stock Brokers Insurance Companies Commodities Business Trusts BUSINESS MIX 23 .

Customer segments (retail & wholesale) account for 84% of Net revenues (FY 2008) Higher retail revenues partly offset by higher operating and credit costs. NRI SERVICES Accounts & Deposits • • • • • Rupee Saving a/c Rupee Current a/c Rupee Fixed Deposits Foreign Currency Deposits Accounts for Returning Indians Remittances • North America • UK • Europe • South East Asia • Middle East • Africa • Others Quick remit 24 .Total Deposits Gross Advances Net Revenue Retail Wholesale • HDFC Bank is a consistent player in the private sector Bank and have a well balanced product and business mix in the Indian as well as overseas markets. Equally well positioned to grow both segments. • • • .

The objective is to build sound customer franchises across distinct businesses so as to be a preferred 25 . risk management and audit & compliance. service levels. benchmarking themselves against international standards and best Practices in terms of product offerings. technology.India Link Cheque Lockbox Telegraphic/ Wire Transfer Funds Transfer Cheques/DDs/TCs Investment & Insurances • • • • Mutual Funds Insurance Private Banking Portfolio Investment Scheme • • • • Loans Home Loans Loans Against Securities Loans Against Deposits Gold Credit Card Payment Services • • • • • • Net Safe Bill Pay InstaPay Direct Pay Visa Money Online Donation • • • • • • • Access To Bank Net Banking One View InstaAlert ATM Phone Banking Email Statements Branch Network BUSINESS STRATEGY HDFC BANK mission is to be "a World Class Indian Bank".

Maintain current high standards for asset quality through disciplined credit risk management. and to achieve a healthy growth in profitability. Maintain good relation with the customers is the main and prime objective of the bank. professional integrity. Develop innovative products and services that attract the targeted customers and address inefficiencies in the Indian financial sector. • • • • • INSIDE HDFC BANK FIVE “S”. Bank is committed to do this while ensuring the highest levels of ethical standards. corporate governance and regulatory compliance. consistent with the Bank's risk appetite. Leverage our technology platform and open scaleable systems to deliver more products to more customers and to control operating costs. PART OF KAIZEN WORK PLACE TRANSFORMATION 26 . Continue to develop new product and technology is the main business strategy of the bank. Continue to develop products and services that reduce bank’s cost of funds. Focus on high earnings growth with low volatility.provider of banking services for target retail and wholesale customer segments. HDFC BANK business strategy emphasizes the following: • Increase market share in India’s expanding banking and financial services industry by following a disciplined growth strategy focusing on quality and not on quantity and delivering high quality customer service.

They use some technique and methodology for smooth running of business. Brings in concept of ownership. BENEFIT OF FIVE “S” • • • • • It can be started immediately.Focus on effective work place organization Believe in “Small changes lead to large improvement” Every successful organization has their own strategy to win the race in the competitive market. Five “S” is an entirely people driven initiatives. All wastages are made visible. Five ‘S’ Part of Kaizen is the technique which is used in the bank For easy and systematic work place and eliminating unnecessary things from the work place. HDFC BANK also acquired the Japanese technique for smooth running of work and effective work place organization. FIVE ‘S’ Means:S-1 S-2 S-3 S-4 S-5 SORT SYSTEMATIZE SPIC-N-SPAN STANDARDIZE SUSTAIN SEIRI SEITON SEIRO SEIKETSU SHITSUKE 27 . Every one has to participate.

n . organize and arrange retrieval. It largely focuses on good labeling and identification practices. Objective: . That means it identify. Frequently Required Wanted but not required Remove everything from workplace Junk Less Frequently Required Junk (2) SYSTEMATIZE:Systematize is focus on efficient and effective Storage method. It is excellent way to free up valuable floor space. It segregates items as per “require and wanted”.(1) SORT:It focuses on eliminating unnecessary items from the work place.SPAN:Spic-n-Span focuses on regular clearing and self inspection.“A place for everything and everything in its place”. (4) STANDERDIZE:- 28 . (3) SPIC. It brings in the sense of ownership.

(5) SUSTAIN:It focuses on defining a new status and standard of organized work place. It brings in self.It focuses on simplification and standardization. Sustain means regular training to maintain standards developed under S-4. It assigns responsibility for doing various jobs and decides on Five S frequency. It involves standard rules and policies.discipline and commitment towards workplace organization. LABELLING ON FILE 29 . It establish checklist to facilitate autonomous maintenance of workplace.

FILE NUMBER SUBJECT FROM DATE TO DATE OWNER BOX LABEL For Example 1/3/A/6 1 – Work Station (1) 3 – Drawer (3) A .Shelf (A) 6 – File Number (6) COLOUR CODING OF FILES 30 .

It is a part of Kaizen and also included in the system of the Five ‘S’. Due to this everyone aware about their particular color file which is coding on it and they save their valuable time.DEPARTMENT Welcome Desk Personal Banker Teller Relationship Manager Branch Manager Demat Others In the HDFC BANK each department has their different color coding apply on the different file. Logic behind it that. the color coding is always differentiating the things from the similar one. HUMAN RESOURCES 31 .

2007. 32 .The Bank’s staffing needs continued to increase during the year particularly in the retail banking businesses in line with the business growth. The Bank continues to focus on training its employees on a continuing basis. both on the job and through training programs conducted by internal and external faculty. The Bank has consistently believed that broader employee ownership of its shares has a positive impact on its performance and employee motivation. Total number of employees increased from 14878 as of March31. 2006 to 21477 as of March 31. The Bank’s employee stock option scheme so far covers around 9000 employees.

14 %. Bank spent 39. Loss on Investment. HDFC BANK earned from the ‘Interest from Advances’ 51. These are the major earning Sources of the bank.12 %. In this diagram it include both things from where Bank earned Rupee and where to spent. ‘Interest from Investment’ 27. Tax. And balanced between these two things rupee earned and rupee spent are required for smooth running of business and financial soundness. 33 .RUPEE SPENT It is more important for every organization to know about from where and where to spent money. As we discuss above that balancing is must between these two for every organization especially in the era of globalization where there are stiff competition among various market players.75 % on Interest Expense.25 %.27 % on Operating Expense and 14.58 % on Provision. Bank also spent Dividend and Tax on dividend. This type of watch can control and eliminate the unnecessary spending of business. bank earned commission exchange and brokerage of 15. 30. Bank also earned from the Forex and Derivatives and some other Interest Income.RUPEE EARNED .

34 . 2008.RECENT DEVELOPMENT The Reserve Bank of India has approved the scheme of amalgamation of Centurion Bank of Punjab Ltd. 2008. with effect from May 23. with HDFC Bank Ltd. All the branches of Centurion Bank of Punjab will function as branches of HDFC Bank with effect from May 23. With RBI’s approval. all requisite statutory and regulatory approvals for the merger have been obtained.

2008.450 crores to Rs.each of HDFC Bank Limited for every 29 equity shares of Re. stock exchanges and other requisite statutory and regulatory authorities.90 billion (Rs. The shareholders of the Bank approved the issuance of one equity share of Rs.000 crores and net advances of around Rs. This is subject to receipt of Approvals from the Reserve Bank of India. the Bank reported a net profit of INR 15.1.3%.69 billion.977 ATMs in 327 cities.1. subject to final regulatory approvals in this regard.each held in Centurion Bank of Punjab Limited.530.550 crores.63.100. 2008 total deposits were INR 1007.1590.up 39.000 crores. The Shareholders of the Bank have also approved an increase in the authorized capital from Rs. The shareholders Also accorded their consent to issue equity shares and/or warrants convertible into equity shares at the rate of Rs. 1/. Leading Indian and international Publications have recognized the bank for its performance and quality. India's leading housing finance company. its three principal business segments. Total balance sheet size too grew by 46.77 billion (133177 crore). wholesale banking.331.000 crores. a strong deposit base of around Rs.0% to INR 1. (Rs.1.769 crore) up 47. As of March 31. 2007. 35 . and treasury operations. phone banking. the shareholders of the Bank accorded their consent to a scheme of amalgamation of Centurion Bank of Punjab Limited with HDFC Bank Limited. 2007.22. Within a relatively short span of time. the bank has emerged as a leading player in retail banking.2crore). HDFC Bank is one of India's premier banks providing a wide range of financial products and services to its over 11 million customers across hundreds of Indian cities using multiple distribution channels including a pan-India network of branches. 2008.13 each to HDFC Limited and/or other promoter group companies on preferential basis.The combined entity would have a nationwide network of 1167 branches. net banking and mobile banking. The balance sheet size of the combined entity would be over Rs. Promoted in 1995 by Housing Development Finance Corporation (HDFC).89. 2008. the bank has successfully gained market share in its target customer franchises while maintaining healthy profitability and asset quality. the Bank had a network of 761 branches and 1. Merger with Centurion Bank of Punjab Limited On March 27. As on March 31.5% over the corresponding year ended March 31. Over the last 13 years. The bank's competitive strength clearly lies in the use of technology and the ability to deliver world-class service with rapid response time. ATMs. For the year ended March 31. over the corresponding year ended March 31.10/.

The bank is also a strong player in foreign exchange services. Centurion Bank of Punjab merged with Lord Krishna Bank (LKB). personal loans. post obtaining all requisite statutory and regulatory approvals.Centurion Bank of Punjab is one of the leading new generations Private sector banks in India. mortgages and agricultural loans. 36 . in addition to its existing dominance in the northern part of the country. life and general insurance and has established a leadership ‘position’. On 29th August 2007. In addition to being listed on the major Indian stock exchanges. Additionally the bank offers a full suite of NRI banking products to Overseas Indians. Centurion Bank of Punjab now operates on a strong nationwide franchise of 404 branches and 452 ATMs in 190 locations across the country. lending and advice on financial planning. especially in the State of Kerala. This merger has further strengthened the geographical reach of the Bank in major towns and cities across the country. small and medium businesses and large corporations with a full range of financial products and services for investing. supported by employee base of over 7. the Bank’s shares are also listed on the Luxembourg Stock Exchange. The bank serves individual consumers. The bank offers its customers an array of wealth management products such as mutual funds.500 employees.

Best in Strength and Soundness Award Euro money Awards 'Best Bank in India' 2009 Economic Times Brand Equity & Nielsen Research annual survey Most Trusted Brand .Runner Up 2009 Asia Money Awards IBA Technology 2009 2009 'Best Domestic Bank in India' Banking 'Best IT Governance Award .Best Innovator of the year award for MD Mr.Runner up' Awards 'Best Trade Finance Bank in India for 2009 Global Finance Award IDRBT Banking 'Best IT Governance and Value Delivery' Technology Excellence Award 2008 Asian Banker 'Asian Banker Best Retail Bank in India Award 2009 ' Excellence in Retail Financial Services 37 .ACHIEVEMENT IN 2009 UTI MF-CNBC TV18 Financial Advisor Awards 2009 Best Performing Bank Business Standard Best Banker Award Mr. Aditya Puri. HDFC Bank Fe Best Bank Awards . MD. Aditya Puri 2009 Second Best Private Bank in India .

SWOT ANALYSIS STRENGTH • Right strategy for the right products. Sectoral growth is constrained by low unemployment levels and competition for staff service staff needs accreditations. competitors. • • Great Brand Image Products have required • • • • • WEAKNESSES Some gaps in range for certain sectors. 38 . Customer training. • Dedicated workforce aiming at making a long-term career in the field. • High degree of customer satisfaction. Processes and systems. • • Good place to work Lower response time with efficient and effective service. • Superior customer service vs. etc Management cover insufficient.

Opportunities • • • • • Threats • • • Profit margins will be good. • An applied research centre to create opportunities for developing techniques to provide added-value services. • Vulnerable to reactive attack by major competitors opportunities on an industry-wide • Lack of infrastructure in rural areas could constrain investment. Could seek better customer deals. Great risk involved Very high competition prevailing in the industry. New specialist applications. Fast-track basis. 39 . • High volume/low cost market is intensely competitive. Could extend to overseas broadly. career development Legislation could impact.

To know the preference of customer regarding the extra services.OBJECTIVES OF THE STUDY • To know the customer satisfaction level and their perception regarding HDFC Bank. • • To know the level of interest of customer regarding the different schemes of bank. 40 . To know the customer awareness regarding the Bank’s products. • • To know the problems of customer regarding bank.

 Construct and present a questionnaire or an appropriate form for data collection. or tasks:  Define the information needed. Typically. a research design involves the following components. 41 . It specifies the details of the procedures necessary for obtaining the information needed to structure and/or solve research problems. A good research design lays the foundation for conducting the project.  Specify the sampling process and sampling size. A good research design will ensure that the research project is conducted effectively and efficiently.RESEARCH METHODOLOGY Research is a careful investigation or inquiry especially through search for new facts in branch of knowledge: market research specifies the information.  Develop a plan of data analysis. RESEARCH DESIGN A framework or blueprint for conducting the research project. the action the objectives can be obtained optimally in the context of a given environment.  Specify the measurement and scaling procedures. Research problem is the one which requires a researcher to find out the best solution for the given problem that is to find out the course of action.  Design the research. Required to address these issues: designs the method for collecting information: manage and implements the data collection process analyses the results and communicates the finding and their implications.

& websites etc.The objectives of the project are such that both primary and secondary data is required to achieve them.Data Collection: . Sampling Unit – Gurdaspur Sampling Technique – Convenient sampling. 2. Then the task of drawing inferences was accomplished with the help of percentage and graphic method. The primary data was collected by means of questionnaire and analysis was done on the basis of response received from the customers. The questionnaire has been designed in such a manner that the consumer’s satisfaction level can be measured and consumer can enter his responses easily. 1. The mode of collecting primary data is questionnaire mode and sources of secondary data are various magazines. newspapers. Sample size – 100 customers were selected. books. Secondary Data: The purpose of collecting secondary data was to achieve the objective of studying the recent trends and developments taking place in banking. it was compiled. Primary Data: The primary data was collected to measure the customer satisfaction and their perception regarding HDFC Bank. classified and tabulated manually and with help of computer. 42 . So both primary and secondary data was used for the project. Analysis and Interpretation After the data collection.

of Respondents 20 37 14 29 100 Response Less than 6 Months Less than 1 Year Less than 2 Years More than 2 Years Total %age of Respondents 20% 37% 14% 29% 100% 20% 29% 14% 37% Less than 6 Months Less than 2 Years Less than 1 Year More than 2 Years Interpretation: 43 . For how long you are part of HDFC Bank? No.1.

What are reasons that attract you to be a customer of the bank? Response Image Extra Services Services All of above No.From the above graph it is clear that majority of the respondents are part of HDFC Bank from last one year i. 20% respondents from 6 months and remaining 14% respondents are part of HDFC Bank for last two years. 29% of the respondents are part of HDFC Bank from last more than 2 years. 2.e. 37%. of Respondents 25 25 45 5 %age of Respondents 25% 25% 45% 5% 45 40 35 30 25 20 15 10 5 0 image Extra services services all of above image 44 .

25% because of its extra services and rest because of all the three factors.e. 3. 25% because of its image.Interpretation: From the above graph it is clear that majority of the respondents i. 45% are become part of HDFC Bank because of its services. Are you aware of the different services offered by HDFC Bank? Response Yes No Total No. of Respondents 91 9 100 %age of Respondents 91% 9% 100% 9% 91% Yes No 45 .

of Respondents 100 100 53 5 25 16 95 %age of Respondents 100% 100% 53% 5% 25% 16% 95% 120 100 80 60 40 20 0 saving a/c fixed deposits current a/c demat a/c credit cards mutual funds loans 46 . 4. Do you know about these following services of the bank? Response Saving a/c Fixed deposits Current a/c Demat a/c Credit cards Mutual funds Loans No. 91% and 9% respondents are not aware of services offered by HDFC Bank.e.Interpretation: From the above graph it is clear that majority of the respondents are aware of products and services offered by HDFC Bank i.

53% are aware about current a/c.Interpretation: From the above graph it is clear that majority of the respondents are aware of saving a/c & FD’s i. Which of these services are you using? Response Saving a/c Fixed deposits Current a/c Demat a/c Credit cards Mutual funds Loans No. 16% mutual fund and 95% are aware of loans. 5. 25% credit card. 100%. of Respondents 65 58 40 3 0 10 47 %age of Respondents 65% 58% 40% 3% 0% 10% 47% 47 .e. 5% demat a/c.

0% credit card.e. 3% demat a/c. 65%. 10% mutual fund and 47% are aware of loans. of Respondents 20 24 10 0 0 23 19 %age of Respondents 20% 24% 10% 0% 0% 23% 19% 48 .58% are using FD’s. Which of these services are you further interested in? Response Saving a/c Fixed deposits Current a/c Demat a/c Credit cards Mutual funds Loans No.70 60 50 40 30 20 10 0 saving a/c saving a/c fixed deposits current a/c demat a/c credit card mutual funds loans Interpretation: From the above graph it is clear that majority of the respondents are using saving a/c i. 6. 40% current a/c.

23% mutual fund.30 25 20 15 10 5 0 saving a/c FD's current a/c demat a/c credit cards mutual funds loans Interpretation: From the above graph it is clear that majority of the respondents are interesting in FD’s i. 24%. 7.e. 19% in loans and no body is interesting in credit cards and demat a/c’s. Which service of the bank would you rate the best? Response Saving a/c Fixed deposits Current a/c Demat a/c Credit cards Mutual funds Loans No.20% are interesting in saving a/c. 40% current a/c. of Respondents 33 40 12 0 0 10 5 %age of Respondents 33% 40% 12% 0% 0% 10% 5% 49 .

40% said FD’s are best.40 35 30 25 20 15 10 5 0 Interpretation: From the above graph it is clear that 33% of the respondent rate saving a/c. saving a/c FD's current a/c demat a/c credit cards mutual funds loans 8. Do you know about the Extra services being provided by the bank? Response Yes No No.5% said about loans and no one rate demat a/c & credit card. of Respondents 69 41 %age of Respondents 69% 41% 50 .10% said about mutual funds. 12% said current a/c. the best product.

69% yes no Interpretation: From the above graph it is clear that 69% of the respondents are known about the innovative services and the rest is unknown about it. Which of the following Extra service of the bank would you like to go in for? Response Phone banking ATM Net banking Bill payment Non of these All of these No. 9. of Respondents 5 60 10 10 5 10 %age of Respondents 5% 60% 10% 10% 5% 10% 51 .

of Respondents 35 55 10 %age of Respondents 35% 55% 10% 52 .all of these non of these bill payment net banking ATM phone banking 0 20 40 60 80 Interpretation: From the above graph it is clear that 5% of the respondents would like to go for phone banking. 60% for ATM’s. 10. 5% don’t want any innovative services and 10% want all these services. 10% for bills payment. 10% for net banking. What is your perception about the service of the bank? Response Good Average Poor No.

Are you satisfied with the dealing of the bank officials? Response Yes No To some extent No. 55% found it average and 10% found it poor.60 50 40 30 20 10 0 Good Average Poor Interpretation: From the above graph it is clear that 35% of the respondents found the service of HDFC Bank good. of Respondents 30 25 45 %age of Respondents 30% 25% 45% 53 . 11.

45 40 35 30 25 20 15 10 5 0 TO some extent Yes NO

From the above graph it is clear that 30% of the respondents are satisfied with the dealing of the bank officials, 45% are not fully satisfied and 25% are dissatisfied.

12. Any problem you are facing regarding the bank?

No. of Respondents

%age of Respondents


Customer relationship Infrastructure Others

12 10 0

12% 10% 0%

80 70 60 50 40 30 20 10 0
From the above graph it is clear that 78% of the respondent facing the problem of timeliness, 12% customer relationship and 10% of infrastructure.

Timeliness Customer relationship Infrastrusture Other

13. How likely are you to recommend Bank services to a friend or colleague?
Very unlikely Somewhat unlikely Neither likely nor unlikely Somewhat likely

No. of Respondents
8 30 17 35

%age of Respondents
8% 30% 17% 35% 55

Very likely



very unlikely somewhat unlikely neither likely nor unlikely somewhat likely very likely

From the above graph it is clear that 8% of the respondents are unlikely to recommend the products of HDFC Bank to their friends and colleagues, 30% said somewhat unlikely, 17% said neither likely nor unlikely, 35% said somewhat likely and 10% said very likely.

14. How will you rate the HDFC Bank in maintaining good customer relationship?
Good Average Poor

No. of Respondents
20 57 33

%age of Respondents
20% 57% 33%


bad Average good Interpretation: From the above graph it is clear that 20% of the respondents said HDFC Bank is good in maintaining customer relationship. 57% said it is average and rest 33% said it is poor in the maintenance. 15. What is your overall satisfaction rating with our bank? Response Very dissatisfied Somewhat dissatisfied Neither satisfied nor No. of Respondents 2 9 21 %age of Respondents 2% 9% 21% 57 .

21% are neither satisfied nor dissatisfied. Majority of the customers are aware of services and extra services offered by HDFC Bank. 58 . 9% are somewhat dissatisfied and 2% are very much dissatisfied with the bank. But not all the services. FINDINGS OF THE STUDY Majority of the customers are satisfied with HDFC Bank.dissatisfied Very satisfied Somewhat satisfied 48 20 48% 20% Rating of the company very dissatisfied somewhat dissatisfied neither satisfied very satisfied 150 somewhat satisfied 21 48 20 9 2 0 ► ► 50 100 Interpretation: From the above graph it is clear that 48% of the respondents are very satisfied with the bank. 20% are somewhat satisfied.

► ► ► Main factor that attract customers towards bank is the services of the bank. FD’s. SUGGESTIONS AND RECOMMENDATIONS ► More stress should give on the advertisement and promotional activities. ► The perception of the majority of the customer regarding the bank is good because majority of the customers are satisfied with the bank and they also recommend the products of the bank.► ► The majority of the customers found services of the bank are average. ► ► The majority of customers are more interested in FD’s. net banking and phone banking. Majority of the respondents are found the bank is average in maintaining the good customer relationship. Services that are most used by the customer are saving a/c. 59 . mutual funds and saving a/cs. The majority of the customers are satisfied with the dealing of the officials upto some extent. current a/c and loans. ► The most preferable extra service is ATM’s and the less preferable services are bills payment. Majority of the respondent said that they are facing the problem of timeliness and rest are facing problem of customer relationship and infrastructure.

LIMITATIONS OF THE STUDY 60 . ► ► ► ► The bank should enhance their services according to the needs of the customer. The bank should make effort to aware the customers about their all the extra services. The bank makes its procedures less time consuming.The Bank should make some efforts to improving good relationship with customer.

It is said.  Limited sample size. 61 .  Some of the respondents of the survey were unwilling to share information. “Nothing is perfect” and if the quite is true.  The information given by the respondent might be biased some of them might not be interested to given correct information. Sincere efforts have been made to eliminate discrepancies as far as possible but few would have reminded due to limitations of the study. I am sure that there would be few shortcoming in this project also. These are:  The research was carried out in a short period.

295 automated teller machines in 528 cities in India. The majority of customers are satisfied. HDFC Bank should lay more stress on advertisements. both in print as well as in other media for this purpose.. as customer feels irritated with lots of formalities and it will save the time of customer and Bank also. with Assets expected to reach US$1 trillion by 2010. 62 . The customers are aware about the bank’s services but the Bank should try to create more awareness among people. Number of formalities should reduce. But the bank should target on the rest of the customers who are not satisfied.142 branches And 3.CONCLUSION At the end I would like to conclude that The Indian banking market is growing at an astonishing rate. HDFC bank had a network of 1. • • www.BIBLIOGRAPHY • • • www. 63 .com • www.

For how long you are part of HDFC Bank? Less than 6 Months Less than 2 Years ( ) ( ) Less than 1 Year More than 2 Years ( ) ( ) 2.QUESTIONNAIRE Name ______________________ Gender _____________________ Annually Income _____________ Age _______________________ Occupation _________________ e-mail _____________________ Address _____________________________________________________ 1. ( ) ( ) ( ) ( ) Are you aware of the different services offered by HDFC Bank? Yes ( ) No ( ) 64 . What are reasons that attract you to be a customer of the bank? a) its image b) its service c) products d) all of the above 3.

Which of these products are you more interested in? a) Savings a/c yes/no 65 .4. Which of these products are you using? a) Savings a/c b) Fixed deposits c) Current a/c d) De-mat a/c e) Credit card a/c f) Insurance g) Mutual finds h) Loans yes/no yes/no yes/no yes/no yes/no yes/no yes/no yes/no 6. Do you know about these services of the banking industry? a) Savings a/c b) Fixed deposits c) Current a/c’s d) Demat a/c’s e) Credit card f) Insurances g) Mutual funds h) Loans Yes/no yes/no yes/no yes/no yes/no yes/no yes/no yes/no 5.

Do you know about the extra services being provided by the bank? a) Yes b) No 66 .B) Fixed deposits c) Current a/c d) De-mat a/c e) Credit card a/c f) Insurance g) Mutual finds h) Loans yes/no yes/no yes/no yes/no yes/no yes/no yes/no 7. Which services of the banks would you rate the best? a) Saving a/c b) Fixed deposits c) Current a/c d) De-mat a/c e) Credit card a/c f) Insurance g) Mutual finds h) Loans 8.

Any problem you are facings regarding the bank? Timeliness ( ) Customer relationship ( ) Infrastructure ( ) 67 . Are you satisfied with the dealing of the bank officials? a. No c. Yes b.9. Which of the following extra service of the banks would you Like to go in for? a) Phone banking b) ATM c) Net banking d) Mobile banking e) Bill payment f) None of these g) All of these ( ) ( ) ( ) ( ) ( ) ( ) ( ) 10. What is your perception regarding the service of the bank? a) Good b) Average c) Poor ( ) ( ) ( ) 11. To some extend ( ) ( ) ( ) 12.

Others ( ) 13. 68 . What is your overall satisfaction rating with our company? (1) Very dissatisfied ( ) (2) Somewhat dissatisfied ( ) (3) Nether satisfied nor dissatisfied ( ) (4) Very satisfied ( ) (5) Somewhat satisfied ( ) Thanks for participating in the survey. How likely are you to recommend Bank services to a friend or colleague? (1) Very unlikely (2) Somewhat unlikely (3) Neither likely nor unlikely (4) Very likely (5) Somewhat likely ( ( ( ( ( ) ) ) ) ) 14. How will you rate the HDFC Bank in maintaining good customer relationship? (1) Good ( ) (2) Average ( ) (3) Poor ( ) 15.

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