A

PROJECT REPORT ON
“CUSTOMER SATISFACTION
REGARDING HDFC BANK”
BY
AMAN KUMAR VERMA (HRD1815373)

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT

OF PGDM PROGRAM OF BIMHRD, PUNE

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 DECLARATION

I hereby declare that the following project report titled “Customer Satisfaction
regarding HDFC Bank” is an authentic work done by me. It is to the best of my
knowledge and belief.

This is to declare that all my work indulged in the completion of this Project
Report such as research, analysis and lead generation is a profound and honest
work of mine.
AMAN KUMAR VERMA
(HRD1815373)

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 Acknowledgement

I would like to express my special gratitude to my mentor Mr. Rupesh Tamboli (Branch
Manager) as well as Mr. Sachin Tgbate (PB Authorizer) who gave me the great opportunity
to do this project on the topic, which also helped me in doing a lot of Research and I came
to know about so many new things new things, I am really thankful to them.
Along with them I would like to thank our director Dr, G Gopalakrishnan and other
faculties for the constant support and help.
At last, I also thank to my family and my friends those helped me in my training period and
in the completion of project.

AMAN KUMAR VERMA

(HRD1815373)

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 PREFACE

Without practical training, management education is meaningless so long with the theory;
practical training is provided to management students to expose them to the actual working
environment of any organization. Such training provides a framework of knowledge
relating to the concepts and practices of the assigned topics in the organization.

The summer training is an integral part of the course curriculum of PGDM program. 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.
This particular project has been conducted at HDFC Bank. In the first phase of the research
project, there is an introduction of Banking, company profile and products of HDFC Bank
are given the research study was limited to Mahadwar Road branch Kolhapur.

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.

HDFC Bank should lay more stress on advertisements, both in print as well as in other
media. Opening up the sector will certainly mean new products, better packaging and
improved customer service. Both new and existing players will have to explore new
distribution and marketing channels. Potential buyers for most of Banks lie in the middle
class. Competitors must segment the market carefully to arrive at appropriate products and
pricing. Recognizing the potential, in the past three years, the nationalized Banks have
already begun to target niches like pensions, women, children and rural peoples.

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 EXECUTIVE SUMMARY
The report contains the organizational study done at HDFC Bank. The report title is
“CUSTOMER SATISFACTION REGARDIND HDFC BANK”.

The report gives an overview of the banking Sector and company profile. And awareness of
customers about different types of products and services offered by HDFC Bank.

This study was conducted to find out the customer satisfaction regarding HDFC bank.

The methodology adopted for the study was through observation method under qualitative
research procedures, which is targeted to the different persons in Mahadwar Road Branch
Kolhapur.

HDFC must advertise regularly and create brand value for its products and services. Most
of its competitors like ICICI, Axis, kotak Mahindra and nationalized banks use television
advertisements to promote their products. The Indian consumer has a false perception about
private banks – they feel that it would not safe.

Safety and returns are the two main reasons people invest in banks. On the whole HDFC
bank is a good place to work at. Every new recruit is provided with extensive training on
the products of HDFC. This training enables an advisor/sales manager to market the
policies better. The company should try to create awareness about itself in India. . With an
improvement in the sales techniques used, a fair bit of advertising and modifications to the
existing product portfolio, HDFC would be all set to capture the banking market in India as
it has around the globe.

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 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. The level of satisfaction is determined not only by
the quality and type of customer experience but also by the customer’s expectations.
A customer may be defined as someone who

 Has a direct relationship with, or is directly affected by your agency and

 Receives or relies on one or more of your agency’s services or products.

Customers in human services are commonly referred to as service users, consumers or

clients. They can be individuals or groups. An organization with a strong customer service
culture places the customer at the centre of service design, planning and service delivery.
Customer centric organizations will:

 Determine the customer’s expectations when they plan listen to the customer as
they design.

 Focus on the delivery of customer service activities value customer feedback when
they measure performance.

 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. 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 are recognized as key partners in shaping service development

and assessing quality of service delivery.

The process for measuring customer satisfaction and obtaining feedback on organizational
performance are valuable tools for quality and continuous service improvement.

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 BANKING STRUCTURE IN INDIA

Scheduled Banks in India

(A) Scheduled Commercial Banks

Public sector Private sector Foreign Banks Regional Rural

Banks Banks in India Bank

(28) (27) (29) (102)

 Nationalized
Bank
 Other Public
Sector Banks
(IDBI)
 SBI and its
Associates

(B) Scheduled Cooperative Banks

Scheduled Urban Cooperative Scheduled State Cooperative

Banks (55) Banks (31)

Here we more concerned about private sector banks and competition among them. Today,
there are 27 private sector banks in the banking Sector: 19 old private sector banks and 8
new private sector banks. These new banks have brought in state-of-the-art technology and
aggressively marketed their products. The Public sector banks are facing a stiff
competition from the new private sector banks. The banks which have been setup in the
1990s under the guidelines Of the Narasimham Committee are referred to as NEW
PRIVATE SECTOR BANKS.

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 INDIAN BANKING INDUSTRIES

The Indian banking market is growing at an astonishing rate, with Assets expected to reach
US$1 trillion by 2010. An expanding Economy, middle class, and technological
innovations are all Contributing to this growth.

The country’s middle class accounts for over 320 million people. In correlation with the
growth of the economy, rising income levels, increased standard of living, and affordability
of banking products are promising factors for continued expansion.

The Indian banking Industry is in the middle of an IT revolution, focusing on the

expansion of retail and rural banking. Players are becoming increasingly customer -
centric in their approach, which has resulted in innovative methods of offering new
banking products and services. 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. “Indian
banking industry assets are expected to reach US$1 trillion by 2010 and are poised to
receive a greater infusion of foreign capital,” says Prathima Rajan, analyst in Celent's
banking group and author of the report.“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."

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 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, 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. With its
experience in the financial markets, a strong market reputation, large shareholder base and
unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian
environment.

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

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 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. After the policy of
liberalization and RBI initiatives to take the step for the private sector banks, more and
more changes are taking the part into it. That are create competition between the private
sector banks and public sector bank. Private sector banks are today used the latest
technology for the different transaction of day to day banking life. 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.

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. New technology changed the mind of the
customers and changed the queue concept from the history banking transaction. Today
there are different channels are available for the banking transactions. There are drastically
changes seen in the use of Internet banking, in a year 2001 (2%) and in the year 2008
(25%). This type of technology gives the freedom to retail customers.

Centralized Processing Units Derived Economies of Scale

Electronic Straight Through Reduced Transaction Cost

Processing

Data Warehousing , CRM Improve cost efficiency, Cross

sell
Innovative Technology Application Provide new or superior
products

HDFC BANK is the very consistent player in the new private sector banks. New private
sector banks to withstand the competition from public sector banks came up with
innovative products and superior service.

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 BUSINESS STRATEGY

HDFC BANK mission is to be "a World Class Indian Bank", benchmarking themselves
against international standards and best Practices in terms of product offerings,
technology, service levels, risk management and audit & compliance. The objective is to
build sound customer franchises across distinct businesses so as to be a preferred provider
of banking services for target retail and wholesale customer segments, and to achieve a
healthy growth in profitability, consistent with the Bank's risk appetite. Bank is committed
to do this while ensuring the highest levels of ethical standards, professional integrity,
corporate governance and regulatory compliance. Continue to develop new product and
technology is the main business strategy of the bank. Maintain good relation with the
customers is the main and prime objective of the bank.

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.

 Leverage our technology platform and open scaleable systems to deliver more
products to more customers and to control operating costs.

 Maintain current high standards for asset quality through disciplined credit risk
management.

 Develop innovative products and services that attract the targeted customers
and address inefficiencies in the Indian financial sector.

 Continue to develop products and services that reduce bank’s cost of funds.

 Focus on high earnings growth with low volatility.

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 OBJECTIVES OF THE STUDY

To know the customer satisfaction level and their perception regarding HDFC
Bank.

To know the customer awareness regarding the Bank’s products.

To know the level of interest of customer regarding the different schemes of bank.

To know the preference of customer regarding the extra services.

To know the problems of customer regarding bank.

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 FINDINGS OF THE STUDY
► Majority of the customers are satisfied with HDFC Bank.

► Majority of the customers are aware of services and extra services offered by HDFC
Bank. But not all the services.

► The majority of the customers found services of the bank are average.

► Majority of the observant are found the bank is average in maintaining the good
customer relationship.

► Majority of the respondent said that they are facing the problem of timeliness and
rest are facing problem of customer relationship and infrastructure.

► 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 most preferable extra service is ATM’s and the less preferable services are bills
payment, net banking and phone banking.

► The majority of customers are more interested in FD’s, mutual funds and saving
a/cs.

► The majority of the customers are satisfied with the dealing of the officials upto
some extent.

► Main factor that attract customers towards bank is the services of the bank.

► Services that are most used by the customer are saving a/c, FD’s, current a/c and
loans.

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 SUGGESTIONS AND RECOMMENDATIONS

► More stress should give on the advertisement and promotional activities.

► The bank should make some efforts to improving good relationship with customer.

► The bank should enhance their services according to the needs of the customer.

► The bank makes its procedures less time consuming.

► The bank should make effort to aware the customers about their all the extra
services.

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 LIMITATIONS OF THE STUDY

 The research was carried out in a short period.

 Observation doesn’t serve to authenticity.

 Communication was the biggest hindrance to the research.

 Bank Data was not used as was not authorized and allowed to use.

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 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 5103 branches And 13,160 automated teller
machines in 2749 cities in India. The majority of customers are satisfied. But the bank
should target on the rest of the customers who are not satisfied. The customers are aware
about the bank’s services but the Bank should try to create more awareness among people.
HDFC Bank should lay more stress on advertisements, both in print as well as in other
media for this purpose. Number of formalities should reduce, as customer feels irritated
with lots of formalities and it will save the time of customer and Bank also.

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