A PROJECT REPORT

ON
“STUDY ON INTERNET BANKING”
AT
HDFC BANK
(NARSIPATNAM)

Project Report
Submitted in the practical fulfilment for Govt. Degree & P.G College
(Batch 2018-2020)

SUBMITTED
BY

P.DAVEEDU
(Reg No: 118224606005)
M.com 4th Semester
Under the guidance of

G.SRINIVASA RAO
Head of the Dept. of Commerce
Govt. Degree college Narsipatnam
GOVERNMENT DEGREE COLLEGE
 NARSIPTNAM
Dept. of Commerce
NARSIPATNAM-531116 Visakhapatnam Dist. (Accredited with B by NAAC)

Ph: 08931- 235770 Email:narsipatnam1.jkc@gmail.com www.gdcnarsipatnam.co.nr

___________________________________________________________________

CERTIFICATE

Certified that this project report titled "THE STUDY

ON INTERNET BANKING TOWARDS SERVICES PROVIDED BY HDFC
BANK REFERENCE TO NARSIPATNAM BRANCH " is the Bonafide work
of MR. P.DAVEEDU (Register No. 1182246060055) who carried out the
project work under my supervision. Certified further, that to the best of
my knowledge the work reported herein does not form part of any
other project report Ordissertation on the basis of which a degree or
award was conferred on an earlier occasion on this or any other
candidate.

INTERNAL GUIDE HEAD OF THE DEPARTMENT

Date: ……………………
 DECLARATION

I hereby declare that the Project report titled “INTERNET Banking

in HDFC BANK” is my original work and has not been published or
submitted for any degree, diploma or other similar titles elsewhere.
This has been undertaken for the purpose of Projectwork of Govt
Degree &P.G COLLEGE NARSIPATNAM

Date: P.DAVEEDU
2ndM.COM
Reg.118224606005
 ACKNOWLEDGMENT

It is really a matter of pleasure for me to get an opportunity to thank

all the persons who contributed directly or indirectly for the
successful completion of the project report, “Service Quality of
HDFC bank”.

I wish to express my gratitude to the branch manager Mr. of HDFC

BANK, NARSIPATNAM for giving mean opportunity to be a part of
their esteem organization and enhance my knowledge by granting
permission to do a summer training Project. They provided me with
their assistance and support whenever needed, which has been
instrumental in completion of this project. I am thankful to Mr .Dr
P.VENKATA RAO principal of govt Degree College, for their support
and encouragement throughout the tenure of the project. Also I am
thankful to my faculty guide Mr. G .SRINIVAS RAO from GOVT
DEGREE COLLEGE NARSIPATNAM HEAD OF THE
DEPT.COMMERCE, and V.CHITTI BABU sir LECTURER IN
COMMERCE G.V.V.S PRASAD BABU sir LECTURER IN COMMERCE
for being a source of support during this training period. Last but
not the least I am grateful to all the staff members of HDFC Bank for
their kind cooperation and help during the course of my project.

P.DAVEEDU
2nd M.COM
Reg.118224606005
 INDEX

CONTENTS

1. INTRODUCTION

2. COMPANY PROFILE

3. SERVICE QUALITY IN BANKS

4. RESEARCH OBJECTIVE

5. RESEARCH METHODOLOGY

6. DATA ANALYSIS

7. FINDINGS OF THE REPORT

8. CONCLUSION

9. RECOMMENDATIONS

10. BIBLIOGRAPHY

11. ANNEXURE: QUESTIONNAIRE

 INTRODUCTION OF BANKING

Service with a smile:

Today’s finicky banking customers will settle for nothing less. The customer
has come to realize somewhat belatedly that he is the king. The customers
choice of one entity over another as his principal bank is determined by
considerations of service quality rather than any other factor. He wants
competitive loan rates but at the same time also wants his loan or credit card
application processed in double quick time. He insists that he be promptly
informed of changes in deposit rates and service charges and he bristles with
„customary rage‟ if his bank is slow to redress any grievance he may have. He
cherishes the convenience of impersonal net banking but during his
occasional visits to the branch he also wants the comfort of personalized
human interactions and facilities that make his banking experience
pleasurable. In short he wants financial house that will more than just clear
his cheque and updates his passbook: he wants a bank that cares and provides
great services.
So does HDFC bank meet these heightened expectations? What are the
customers‟ perceptions of service quality of the banks? Which dimension of
service quality of HDFC bank is performing well? To find out answers to these
questions I undertook a survey of 2 branches of HDFC bank. A lot of surveys
have been done in the past to understand the aspect of customer satisfaction
and to find out the customer friendly banks. My research is conducted to find
out “SERVICE QUALITY OF HDFC BANK
 GROWTH AND PRESENT STATUS OF THE INDUSTRY
By the 1960s the Indian banking industry has become an in important tool to
facilitate the development of the Indian economy. At the same time to Has as a
large employer, and a debate has ensued about the possibility to nationalize
the banking industry. Indira Gandhi, the-then Prime Minister of: India
expressed the intention of the GOI in the annual conference of the All India
Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalization”
The paper was received with positive enthusiasm. Thereafter, her move was
swift and sudden, and the GOI issued an ordinance and nationalized the 14
largest commercial banks with effect from the midnight of July 19, 1969.
Jayaprakash Narayan, a national leader of India, described the step as a
"masterstroke of political sagacity." Within two weeks of the issue of the
ordinance, the Parliament passed the Banking Companies (Acquition and
Transfer of Undertaking) Bill, and it received the presidential approval on 9th
August, 1969. A second dose of nationalization of 6 more commercial banks
followed in 1980. The stated reason for the nationalization was to give the
government more control of credit delivery. With the second dose of
nationalization, the GOI controlled around 91% of the banking business of
India. After this, until the 1990s, the nationalize banks grew at a pace of
around 4% closer to the average growth rate of the Indian economy.

FUTURE OF THE INDUSTRY:

A Healthy banking system is essential for any economy striving to achieve
good Growth and yet remain stable in an increasingly global business
environment. The Indian banking system, with one of the largest banking
networks in the world, has witnessed a series of reforms over the past few
years like the deregulation of interest rates, dilution of the government stake
in public sector banks (PSBs), and the increased participation of private sector
banks. The growth of the retail financial services sector has been a key
development on the market front. Indian banks (both public and private) have
not only been keen to tap the domestic market but also to compete in the
global market place. New foreign banks have been equally keen to gain a
foothold in the Indian market. The momentum in credit growth has been
maintained during 2015-16 due to two factors: The corporate sector has
stepped up its demand for credit to fund its expansion plans; there has also
been a growth in retail banking. However, even as the opportunities increase,
there are some issues and challenges that Indian banks will have to contend
with f they are to emerge successful in the medium to long term. This report
discusses these issues and challenges – both intrinsic and external

CONSOLIDATION:
Consolidation which has been on the counter over the last year or so is likely
to gather momentum in the coming years. Post April 2009, when the
restrictions on operations of foreign banks will go, the banking landscape is
expected to change dramatically. Foreign banks, which currently account for
5% of total deposits and 8% of total advances, are devising new business
models to capture the Indian market. Their full-fledged entry is expected to
transform the business of banking in many ways, which would be reflected in
terms of greater breadth of products. Depth in delivery channels and
efficiency in operations. Thus Indian banks have less than three years to
consolidate their position. Despite the stiff resistance from certain segments,
consolidation holds the key to future growth. This view is underpinned by the
following:
 Owing to greater scale and size, consolidation can help save costs and
Improve operational efficiency.
 Banks will also have to explore different avenues for raising capital to
meet Norms under Basel-II
 Owing to the diversified operations and credit profiles of merging
banks, consolidation is likely to serve as a risk-mitigation exercises as
much as a growth Engine. Though there is no confirmation yet,
speculative signals arising from the market point to the prospect of
consolidation involving banks such as Union Bank of India, Bank of
India, Bank of Baroda, HDFC Bank, Sta1; Bank of Patiala, and Punjab and
Sind Bank. Further, the case for merger between stronger banks has
also gained ground a clear deviation from the past when only weak
banks were thrust on stronger banks. There is a case being made for
mergers between banks with a distinct geographical presence coming
together to leverage their respective strengths.
 HISTORY

Financial performance:
HDFC Bank is India's second-largest bank with total assets of Rs.
3,634.00billion (US$ 81 billion) at March 31, 2010 and profit after tax Rs.
40.25 Billion(US$ 896 million) for the year ended March 31, 2010. The Bank
has a network of 2016 branches and about 5,219 ATMs in India and presence
in 18 Countries. HDFC Bank offers a wide range of banking products and
financial services to corporate and retail customers through a variety of
delivery channels and through its specialized subsidiaries in the areas of
investment banking, life and non-life insurance, venture capital and asset
management. The Bank currently has subsidiaries in the United Kingdom,
Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong,
Sri Lanka, Qatar and Dubai International Finance Centre and representative
offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand,
Malaysia and Indonesia. Our UK subsidiary has established branches in
Belgium and Germany. HDFC Bank's equity shares are listed in India on
Bombay Stock Exchange and the National Stock Exchange of India Limited and
its American Depositary Receipts (ADRs) are listed on the New York Stock
Exchange (NYSE).Established in 1994, HDFC Bank is today the second largest
bank in India and among the top 150 in the world. In less than a decade, the
bank has become universal bank offering a well diversified portfolio of
financial services. It currently has assets of over US$ 79 billion and a market
capitalization of US$ 9billion and services over 14 million customers through
a network of about 950branches, 3300 ATM's and a 3200 seat call Center (as
of 2007). The hallmark of this exponential growth is HDFC Bank’s unwavering
focus on technology.

Branches & ATMs

HDFC Bank has a wide network both in Indian and abroad. In India alone the
bank has 1,420 branches and about 4,644 ATMs. Talking about foreign
countries, HDFC Bank has made its presence felt in 18 countries - United
States,78 Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai
International Finance Centre and representative offices in United Arab
Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia.
The Bank proudly holds its subsidiaries in the United Kingdom, Russia and
Canada out of which, the UK subsidiary has established branches in Belgium
and Germany

OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVE:
To study customer awareness about the Internet Banking services provided
by “ HDFC ” bank with special reference to Narsipatnam branch

SECONDARY OBJECTIVES:
 To analyze customer satisfaction level in the internet banking services
 To know the reason for preferring internet banking service in HDFC
bank
  To know the customers perception about the internet banking services.

NEED FOR THE STUDY:

HDFC bank offered Internet banking since 24th May 2008. But the fact is that
there are only limited customers who use this facility, compared to other
services. Hence to enable the awareness of this service in the minds of the
customers the researcher is interested to study "Customer awareness towards
the internet banking services provided by HDFC bank with special reference
to Narsipatnam branch" in terms of Factors determining customer awareness
towards the internet banking services. To identify the customers perception
about the internet banking service. To trace out the expectation of customer
towards the internet banking services.

SCOPE OF THE STUDY:

The study entitled "Customer awareness towards internet banking services
provided by HDFC bank with special reference to Narsipatnam branch" aims
to find out the awareness level and the effectiveness of Internet banking
service provided by Dent bank to the customers. The analysis will help to
know the awareness level of customers regarding the internet banking
services. Along with the satisfaction level of tie customers in the internet
banking services and the customer's perception regarding the internet
banking service at HDFC bank.
Industry Profile:
Banking in India originated in the first decade of 18th century. The General
Bank of India came into existence in 1786. This was followed by Bank of
Hindustan. Both these banks are now defunct. The oldest bank in existence in
India is the State Bank of India being established as "The Bank of Bengal" in
Calculate in June 1806. A couple of decades later, foreign banks like Credit
Lyonnais started their Calcutta operations in the 1850s. At that point of time,
Calcutta was the most active trading port, mainly due to the trade of the
British Empire, and due to which banking activity took roots there and
prospered. The first fully Indian owned bank was the Allahabad Bank, which
was established in 1865. By the 1900s, the market expanded with the
establishment of banks such as Punjab National Bank, in 1895 in Lahore and
Bank of India, in 1906, in Mumbai - both of which were founded under private
ownership. The Reserve Bank of India formally took on the responsibility of
regulating the Indian banking sector from 1935. After India's independence in
1947, the Reserve Bank was nationalized and given broader powers. The
banking in India was controlled aid combated by the presidency banks,
namely, the Bank of Bombay, the Bank of Bengal, and the Bank of Madras
which later on merged to form the Imperial Bank of India, and Imperial Bank
of India, upon India's independence, was rename the State Bank of India. The
presidency banks were like the central banks and discharged most old the
font tins of central banks. They were established under charters from the
British Eats India Company. The exchange banks, mostly owned by the
Europeans, concentrated on financing of foreign trade. Indian joint stock
banks were generally under copal lazed a i d lacked the experience and
maturity to compete with the presidency banks, and the exchange banks.
There was potential for many new banksias the economy was growing Under
these circumstances, many Indians came forward to set up banks, and many
banks were set up at that time, and a number of them set up around that time
continued o survive and prosper even now like Bank of India and Corporation
Bank, Indian Bank, Bank of Baroda, and Canada Bank

Growth and Present Status of the Industry

By the 1960s, the Indian banking industry has become an in important tool to
facilitate the development of the Indian economy. At the same time, it has
emerged as a large employer, and a debate has ensued about the possibility to
nationalize the7banking industry. Indira Gandhi, the-then Prime Minister o:
India expressed the intention of the GOI in the annual conference of the All
India Congress Meeting in a paper entitled "Stray thoughts on Bank
Nationalization” The paper was received with positive enthusiasm.
Thereafter, her move was swift and sudden, and the GOI issued an ordinance
and nationalized the 14 largest commercial banks with effect from the
midnight of July 19, 1969. Jayaprakash Narayan, a national leader of India,
described the step as a "masterstroke of political sagacity." Within two weeks
of the issue of the ordinance, the Parliament passed the Banking Companies
(Acquition and Transfer of Undertaking) Bill, and it received the presidential
approval on 9th August, 1969. A second dose of nationalization of 6 more
commercial banks followed in 1980. The stated reason for the nationalization
was to give the government more control of credit delivery. With the second
dose of nationalization, the GOI controlled around 91% of the banking
business of India. After this, until the 1990s, the nationalize banks grew at a
pace of around 4% closer to the average growth rate of the Indian economy.
Future of the Industry:-
A healthy banking system is essential for any economy striving to achieve
good Growth and yet remain stable in an increasingly global business
environment. The Indian banking system, with one of the largest banking
networks in the world, has witnessed a series of reforms over the past few
years like the deregulation of interest rates, dilution of the government stake
in public sector banks (PSBs), and the increased participation of private sector
banks. The growth of the retail financial\ services sector has been a key
development on the market front. Indian banks (both public and private) have
not only been keen to tap the domestic market but also to compete in the
global market place. New foreign banks have been equally keen to gain a
foothold in the Indian market. The momentum in credit growth has been
maintained during 2005-06 due to two factors: The corporate sector has
stepped up its demand for credit to fund its expansion plans; there has also
been a growth in retail\banking. However, even as the opportunities increase,
there are some issues and challenges that Indian banks will have to contend
with f they are to emerge successful8 in the medium to long term. This report
discusses these issues and challenges – both intrinsic and external, such as
Consolidation
Consolidation, which has been on the counter over the last year or so, is likely
to gather momentum in the coming years. Post April 2009, when the
restrictions on\ operations of foreign banks will go, the banking landscape is
expected to change dramatically. Foreign banks, which currently account for
5% of total deposits and 8% of total advances, are devising new business
models to capture the Indian market. Their full-fledged entry is expected to
transform the business of banking in many ways, which would be reflected in
terms of greater breadth of products. Depth in delivery channels and
efficiency in operations Thus Indian banks have less than three years to
consolidate their position. Despite the stiff resistance from certain segments,
consolidation holds the key to future growth. This view is underpinned by
the\ following: Owing to greater scale and size, consolidation can help save
costs and Improve operational efficiency. Banks will also have to explore
different avenues for raising capital to meet Norms under Basel-II Owing to
the diversified operations and credit profiles of merging banks, consolidation
is likely to serve as a risk-mitigation exercises as much as a growth Engine.
Though there is no confirmation yet, speculative signals arising from the
market point to the prospect of consolidation involving banks such as Union
Bank of\ India, Bank of India, Bank of Baroda, HDFC Bank, Sta1; Bank of
Patiala, and Punjab and Sind Bank. Further, the case for merger between
stronger banks has also gained ground a clear deviation from the past when
only weak banks were thrust on stronger banks. There is a case being made
for mergers between banks with a distinct geographical presence coming
together to leverage their respective strengths.
 COMPANY PROFILE

Origin of the Organization:

HDFC Bank was founded on 26th May, 1938 by the family of DevkaranNanjee
under the name Devkaran Nanjee Banking Company Ltd. It became a Public
Ltd. Company in December 1939 and later the name was changed to HDFC
Bank Ltd. In July 1969 HDFC Bank Ltd. along with 13 other major banks was
nationalized and is now a Public Sector Bank constituted under the Banking
Companies (Acquisition & Transfer of Undertakings) Act, 1970. Under the
provisions of the Banking Regulations Act 1949, in addition to the business of
banking, the Bank can undertake other business as specified in Section 6 of
the Banking Regulations Act, 1949.

Milestones
One among six Public Sector Banks selected by the World Bank for
sanctioning a loan of Rs.72.3 Crores for augmentation of Tie-II Capital under
Financial Sector Developmental project in the year 1995.One among the few
Banks to receive the World Bank loan for technological up gradation and
training. Launched a Bond Issue of Rs.92.13 Crores in November 1996.Maiden
Public Issue of Rs.180 Crores in November 1996.Introduced Tele banking
facility of selected metropolitan Centers. HDFC Bank has been the first Bank to
introduce:
Minor Savings Scheme:
Credit card in rural India Known as "HDFC KRISHI SAKH PATRA”(DKSP)

Drive-in ATM counters of Juhu, Mumbai.

Smart card at selected branches in Mumbai.
Customer rating system for rating the Bank Services.
Growth and Development of the Organization:-
The evolve and position the bank as a world class, progressive, cost-effective
and customer friendly institution providing comprehensive financial and
related services: integrating frontiers of technology and serving various
segment of society especially the weaker section of the society: especially the
weaker section of the society: committed to excellence in serving the public
and also excelling in the corporate values. Corporate excellence ensnare from
good corporate governance exercised by adopting standard of transparency,
accountability, professionalism, social responsiveness, and ethical business
practices with this in view, the has been making efforts for adopting the best
practices. The bank commitment management and to ensure best
performance by staff at al the levels to maximize the operational efficiency.
Adopting the corporate governance as a work ethos, the bank is committed
to enhancing the stakeholder’s value.

Present Status of Organization:-

HDFC bank might just be another case of bank in trouble. Going by the recent
observations of the accounting department of the bank itself, the bank's
capital adequacy ratio (CAR) and profitability in serious doubts.
An analysis of the financial position of the bank for the year 2002-03, by the
accounts department of HDFC bank, copy of which is in the possession of
Indian Express, showed that the bank's CAR stood at 9.33% would go down as
low as 6.02%as per the latest RBI guidelines. In simple terms, a low CAR
implies that the bank would be trouble there is a run on it since it has
overexposed itself. Further, miscellaneous income, which also accounted for
the increase in profits, went up by Rs.32.92 crores of the miscellaneous
income was due to transfer of old credits over five years lying with the bank in
suspense receipts / unclaimed credits. Another element of doubts in the
results is the fact that the bank had reverse amount of Rs.18.40 crores to the
balance sheet as disputed tax liability. This was based on the expert opinions
received by bank on tax consultants and also on a high court together
accounted for Rs.83.40 crores of profit.

Functional Departments of the Organization:

HDFC Bank deals with the following functional departments:
1. Personal
In the HDFC Bank Personal Banking section, the organization offer its services
with a personal touch by reaching out to all in various manners, one of them is
through offering a basket of our Deposit Schemes which delivers a strong
return onaly you personal savings and our Loan Schemes which provides the
required financial assistance in your times of need.
2. Corporate
Corporate Finance
HDFC Bank provided financial assistance to the business entities engaged in
various activities of manufacturing, trading and service.
The financial assistance is provided for setting up new projects, acquiring
assets and also for meeting day to day working capital requirement of the
constituents. These assistances are termed as Long Term Finance & Short
Term Finance respectively.
Term Finance
Term Loan / Finance covers funds required for acquiring means of production
such as land, building and plant and machinery etc. These could be for setting
up new projects or expanding the present activities. Term finance is generally
give for a longer period and is repayable in installment’s over the period with
or without Moratorium. The period and the installments are determined
based on the repayment capacity of the project / borrower.12
Working Capital Finance
Working Capital Finance (WCF) is extended for carrying our normal trading /
manufacturing activities. The working capital finance is provided for a
relatively shorter period generally for a period of 1 year and renewed on
yearly basis considering the performance of the borrower.
The WCF is considered only after project nearing completion and after full tie
up of term loan requirement. The Working Capital limits of the borrower are
assessed by adopting various methods such as Projected Turnover Method
(Nayak Committee Recommendation),Permissible Bank Finance Method, Cash
Budget Method etc. depending upon the aggregate working capital limit
required / enjoyed from the banking system, nature of activity, production
cycle etc. Working Capital finance is in the form of pre-sale and
post-sale limit. In Pre Sale Finance the advance is granted for acquiring
Inventory for production / processing or trading purpose while the Post -Sale
Finance is extended against the receivable. HDFC Bank encourages Post-Sale
finance in the form of purchase / discounting of bills etc.
Pre Sales Finance:
 Cash Credit Hypothecation / Pledge against Stocks
 Packing Credit Hypothecation / Pledge against Stocks
 Clean packing Credit Limit
 Trust Receipts
 Working Capital Loan (Demand / Term)
Post Sales Finance:
 Bills discounting / purchase - Inland / Foreign
 Cash Credit Hypothecation against Book Debts
 Advances against Export Incentives
 Purchase of Cheques / Demand Draft
13Non Fund Based Credit Assistance
The Business units also require Credit Assistance for procurement of Goods,
where the funds are not involved. Such facilities are available against the
assured commitments / guarantee from the Lending Institutions.
HDFC Bank is extending such Non Fund Based assistance to me eligible units
in the form of:
 Issuance of Guarantee of various types like Performance, Financial, Bid
Bond, Tender Deposit / Earnest Money etc. and
 Issuance of Letter of Credit
 Deferred Payment Guarantee
Export Credit
Bank extends credit to Exporters at Competitive rates, at both Pre-shipment
and Post-shipment stages. Recently, Bank has introduced Gold Card Scheme
which provides cheaper export credits to the eligible borrowers. Selected
Clients engaged in exports are also suitably rewarded in the form of Export
Credit Denominated h Foreign Currency viz. PCFC (Pre Shipment) / REBA
(Post Shipment Credit).
Specific Schemes
The Bank has devised specific schemes for the following Sectors:
 Educational Institutions,
 Builders & Developers,
 Hospitals,
 Hotels & Restaurants &
 Entertainment Industry.
3. NRI Desk
With over 1100 branches spread across the country, HDFC Bank is your ideal
banking partner if you are a Non-Resident Indian.14All transactions by NRIs
in Indian Banks are governed by FBI Rules and Regulations.
4. Priority & SME
These are the sectors where has taken special care to ensure instant sanctions
and approvals for all applicants. Priority Sector Schemes:
 HDFC Rural Internet Kiosk Scheme
 HDFC Shakti Scheme
 HDFC Laugh Udyami Card Scheme
 HDFC Rural Artisan Credit Card Scheme
  HDFC Swarozgar Credit Card Scheme.
5. HDFC Bill pay:-
Auto Pay Just gives us your bill details; specify your bank account and we will
pay your Sill for you every month from that account. You can specify an upper
limit and bills above this limit will be paid only on you specific instructions.
Phone Pay
Get a SMS alert when bill is due and issue payment instructions in accordance.
Internet
If you have access to the internet, you can view and pay your bills online at
www.HDFCbank.com. You will receive new bill notifications, due date
reminders and payment confirmations via email.
6. HDFC ATM Services
HDFC Bank always stands in forefront in understanding it customer's need.
HDFC Bank Debit cum ATM Card offers you an easy and convenient way to do
all your transactions and that too within a fraction of seconds. Presently we
have more than
380 ATMs all across India. HDFC Debit cum ATM Card is your Bank Account in
your pocket. Get your HDFC Bank Debit cum ATM Card today and avail round
the clock uninterrupted service. Below is the simple procedure to use this
facility:
15Contact your Branch. If you don't have Saving or Current Account, first open
your account. Get the Debit/ATM Card Application form from the Branch, fill it
up and submit it to your Branch. Within 10 days, you will receive your Debit
cum ATM Card along with PIN(Personal Identification Number) and Debit
cum Al M Card Booklet. Activate your card immediately by withdrawing (ash
from HDFC Bank ATM. After that you can use your ca d on POS Terminal
( Merchant Establishments)
7. Other Services:-
HDFC Bank, your trusted family bank, now is proud to offer a range of
sophisticated banking services by way of Any-branch banking, Multi City
cheque, HDFC ATM's, HDFC Cards,
 Online remittance,
 Internet Banking,
 Mobile banking,
 Tele banking,
 Online utility Bill Payment,
 Value added Service through ATM,
 Kiosks, loans and many more.
With over 1100 branches across the country, we are always ready to serve our
customers, and to offer them the best of the technology-enabled banking
products and
services.
Organization Structure and Organization Chart Organization
Structure:-
HEAD OFFICEEGIONAL OFFICEBRANCHES
Executive cadres of the organization.
They are Executive Director, General Manager (GM), Deputy General
Managers (DGM), assistant General Managers (AGM), Chief Managers (CM),
Managers and other officers are in the hierarchy at the head office level
functioning in various Departments. The regional Managers heads the
Regional Officers who are assisted by other down in the hierarchy. The Branch
is headed by A.GM\CM\ Senior Managers/Managers depending upon the size
of the Branch activities and rendering of satisfactory customer service. The
bank has a very good system of delegating power to the different
functionaries in the hierarchy to facilitate speedy decision- making
process even up to the branch Level. As mentioned above, the organization
chart for a regional office is different from organization charts of a Head Office
as well as Branches. The organization chart for the regional office where the
training has taken place consists of various designations and responsibilities.
The various designations and the persons responsible for that designation's
responsibilities are described as under through the charts.

The Bank has been the first among the nationalized banks to
establish a fully computerized branch and ATM facility at the Mahalaxmi
Branch at Mumbai way back in 1989. The Bank is also a Founder Member of
SWIFT in India. It pioneered the introduction of the Health Code System if
1982, for evaluating/ rating its credit portfolio.
Different Bank Parameters:-
Name of the Bank
Last Price Market Cap(Rs. Cr)
Net Interest Income
Net Profit Total Assts
SBI 2,266.45 143,892.43 63,788.43 9,121.24 964,432.08
PNB 917.45 28,927.43 19,326.16 3,090.88 246,918.62
Bank Of India 387.50 20,350.54 16,347,36 3,007.35 225,501,75
Bank of Baroda 499.50 18,195.11 15,091.58 2,227.20 227,406.73
Market Profile Of The Organization:-
HDFC Bank is an India-based company which is engaged in treasury,
corporate/wholesale banking, retail banking, and other banking operations.
The deposit schemes offered by the Company include Premium Savings
Account Scheme, Premium Current Account Scheme, HDFC Savefix Deposit
Scheme, HDFC Freedom Deposit Scheme, HDFC Samruddhi Deposit Scheme,
HDFC Fixed. Deposit Scheme, HDFC Senior Citizen Scheme, HDFC Recurring
Deposit Scheme, HDFC Loan Linked Recurring Deposit Scheme, HDFC Minor
Savings Scheme, and HDFC AlpaBachatKhata. It offers services, such as any
branch banking, multi city cheque. automated
teller machines (ATMs), HDFC Cards, online remittance, Interr.et banking,
mobile banking, tele-banking, online utility bill payment, and value-added
Service. During the fiscal year ended March 31, 2009, the total number of
branches comprised of1184.HDFC Bank. The Company's principal activity is
to provide commercial banking and other related services. The Company also
provides in merchant banking, asset management and other related services.
The company's banking products and services are provided through 1184
branches offices, 387 ATMs all over India. The Company operates only in
India.21The Company's principal activity is to provide commercial banking
and other related services. The Company also provides in merchant banking,
asset management and other related services. The company's banking
product:; and services are provided through 1184 branches offices, 387 ATMs
all over India. The Company operates only in India.
Fiscal Yr Ends: March Share Outstanding: 286,823,200
Share Type : Ordinary Closely Held
REVIEW OF LITERATURE
INTRODUCTION
The process of development along with the expanding globalization and
liberalization process has increased the number of customer related issues.
Customer protection has earned an important place in the political, economic
and social agendas of many nations. In India, the Government has taken many
steps including legislative, to protect customers. Education is a lifelong
process of constantly acquiring relevant information, knowledge and skills.
Customer education is an important part of this process and is basic customer
right that must be introduced at the school level. Customers by definition
include all citizens who are, by and large the biggest group, who are affected
by almost ail go.vernment, public or private decisions. The most important
step in customer education is awareness of customer rights. However,
customer education is incomplete without the responsibilities and duties of
customers, and this influences individual behavior to a great extent. Customer
awareness is the knowledge that a customer should have about his/herlegal
rights and duties. It is must for a customer to follow these rights. It is
implemented for the protection of the customer, so that the customer is not
exploited by the seller of the products. Customer awareness, which refers to a
buyers knowledge of a particular productor company, allows the buyer to get
the most from what he buys. Customers know more about their choices when
they have product information and benefit from knowing their rights, hearing
about alerts and warnings and finding out about safety issues. Anyone who
consumes goods is a customer. Customers get exploited in the market. They
respond to advertisements and buy goods. Generally advertisements donot
give all the information that a customer needs to know or wants to know
about aproduct.24Customer awareness is a marketing concept that measures
customers' knowledge of abrand's existence. At the aggregate (brand) level, it
refers to the proportion of customers who know of the brand. Customer
awareness remains fundamental to customer life us the interaction initiation
point to the brands. The approach takes into account sources of brand equity -
customer awareness, customer/brand loyalty, and image
(perceptions/associations) in the minds of customer.

Measurement driven conceptualization

Customer awareness means the extent to which a brand associated with a
particular product is documented by potential and existing customers either
positively or negatively. Creation customer awareness is the primary goal of
advertising at the beginning of any product's life cycle in target markets, and
has influence on buying behavior of a buyer. All of these calculations are, at
best, approximations. A more complete understanding of the brand can occur
if multiple measures are used. Brand equity is the positive effect of the brand
on the difference between the prices that the customer accepts to pay when
the brand known compared to the value of the benefit received. There are two
schools of thought regarding the existence of negative brand equity. One
perspective states brand equity cannot be negative, hypothesizing only
positive brand equity is created by marketing activities such as advertising,
PR, and promotion. A second perspective is that negative equity can exist, due
to catastrophic events to the brand, such as a wide product recall or continued
negative presanttention. Colloquially, the term "negative brand equity" may
be used to describe a product or service where a brand has a negligible effect
on a product level when compared to a no-name or private label product. The
brand-related negative intangible assets are called "brand liability", compared
with "brand equity".
Brand recognition - Either the brand name or both the brand name and
category name are presented to respondents.
25Brand recall - the product category name is given to respondents who are
asked to recall as many brands as possible that are members of the category.
Top of mind awareness - as above, but only the first brand recalled is
recorded (also known as spontaneous brand recall).
Research on metrics
There has been discussion in industry and practice about the meaning and
value of various customer awareness metrics. Recently, an empirical study
appeared to put this debate to rest by suggesting that all awareness metrics
were systematically related, simply reflecting their difficulty, in the same way
that certain questions are more difficult in academic exams.
Brand recall
Brand Recall is the extent to which a brand name is recalled as a member of a
brand, product or service class, as distinct from brand recognition.
Common market research usage is that pure b -and recall requires "unaided
recall". For example a respondent may be asked to recall the names of any
cars he may know, or any whisky brands he may know. Some researchers
divide recall into both "unaided" and "aided" recall. "Aided recall" measures
the extent to which a brand name is remembered when the actual brand name
is prompted. An example of such a question is "Do you know of the "Honda
brand?"In terms of brand exposure, companies want to look for high levels of
un aided recall in relation to their competitors. The first recalled brand name
(often called "top of mind") has a distinct competitive advantage in brand
space, as it has the first chance of evaluation for purchase.

26 Brand Recognition
Brand Recognition is the extent to which a brand is recognized for stated
brand attributes, parts, offerings, or communications.
In some cases brand recognition is defined as aided recall - and as a subset of
brand recall. In this case, brand recognition is the extent to which a brand
name is recognized when prompted with the actual name.
A broader view of brand recognition is the extent to which a. brand is
recognized within a product class for certain attributes. Logo and tagline
testing can be seen as a form of brand recognition testing. For example, if a
product name can be associated with a certain tagline, logo or attribute a
certain level of brand recognition is present.

Stability of responses
While customer awareness scores tend to be quite stable at aggregate (level)
level, individual customers show considerable propensity to change their
responses to recall based customer awareness measures. For top of mind
recall measures, customers give the same answer in two interviews typically
only 50% the time. Similar low levels of consistency in response have been
recorded for other cues to elicit brand name responses
DEFINITION:
Making existing and potential customers knowledgeable about
products/services, customer awareness programs create more informed
buying decisions Customers cannot purchase products and service if they do
not know they exist .A lack of customer awareness in any industry can harm
sales. If specific products and services are better known, those products and
services will remain on the

27 front line in sales: Therefore, it is important to implement customer

awareness programs that will introduce and make the target audience aware
of the products and services accompany offers. Customer awareness is the
process of notifying the public or target customers about new products,
recalls on products, disease outbreaks, public service information and many
other types of news. Many companies use certain advertising mediums like
newspapers or radio ads to promote customer awareness. Informing the
public about vital information or new products plus positive word-of-mouth
experiences can have; assien ergistic effect on disseminating information
amidst the public. Following are some steps you can take to create customer
awareness about your product or public service information.
Need for Customer Awareness:
1) It has been observed that the people for whom various schemes have been
taken up by Bureau of Indian Standards (BIS), in fact, do not get benefit as
expected. This is mainly because they are not fully aware of these schemes
and their benefits. Also, only knowledgeable and alert customers aware of
their rights and responsibilities can protect themselves effectively. The need
of the hour is, therefore, to educate the common customers particularly those
in rural are as who are more susceptible to exploitation. Once they are
educated and made aware of the schemes that have been drawn up for their
benefit and also there dressed forum that is available, the benefit of various
schemes, in true sense, will reach the common customers of the country.
It is, therefore, our bounden duty to play our part jointly and effectively in
disseminating various schemes to the common customers of the country. In
this regard, the role of the voluntary customer organizations, customer
activists, non-governmental organizations, educational institutions and media
cannot be ignored. Making existing and potential customers knowledgeable
about products/services, customer awareness programs create more
informed buying decisions. Customers cannot purchase products and services
if they do not know they exist. A lack of customer awareness in any industry
can harm sales. If specific products and services are. better known, those
products and services will remain on the front line in sales. Therefore, it is
important to implement customer awareness programs that will introduce
and make the target audience aware of the products and services a company
offers. Customer awareness programs can be initiated through the utilization
of flyers, brochures, television, radio, guides, fact sheets, information posted
to a Web site, school programs, and other sources depending upon the topic
and the message delivered. We need it so we will not be misled by producers,
it explains if what we buy is worth to our money and not harmful to us and to
environment.
Many people are ignorant of their rights to get protected against the
exploitation by so many others. So when there is a forum for such redress of
grievances there seems to be no such exploitation by many; and becomes a
rare one. So in Older to get a clear picture of the level of exploitation of
customers, the awareness is required.
Importance of Customer Awareness
Customer awareness is a term used to describe the awareness of a potential or
current buyer about a particular product or company. Customer awareness
can be as simple as a shopper remembering a television commercial or as
specific as a customer delving into the manufacturing origins of a specific
product.
Function
Customer awareness plays a key role in customer decision making. By
increasing a potential or current customer's knowledge about a product,
service or business, a healthy economic environment is established in which
customers are informed and protected and businesses are accountable.

29 Considerations
Customer education is an ongoing process that considers a variety of factors,
including price, reputation, personal knowledge, history, social issues and
other factors.
Benefits
There are several significant benefits to customer awareness for both
individuals and society as a whole. The benefits of customer awareness for
individuals include enhanced critical thinking, improved life skills and
increased self-confidence. Customer awareness benefits society by promoting
customer satisfaction, increasing economic stability and creating realistic
customer expectations.
Types
There are several different types of customer awareness Media awareness
involves a customer's knowledge of the advertising surrounding a given
product or company. Media awareness also encompasses independent
product reviews online or in print publications. Cost awareness involves
comparing the prices of a similar product among different competitors.
Creating customer awareness:
Decide whom you want to target about your product or public service
announcement. Determine which advertising medium or methods you can use
to reach your target audience. Have those various media companies send you
a media kit on their circulation, readership or reach as well as the price of all
types of promotions. Develop a website to include in your advertising.

30Design a logo that distinctly identifies your product or public service

company. Create a memorable character like Mr. Clean or Smokey the Bear to,
respectively, promotes your product or public service announcement.
Develop a small booklet that contains vital information about your product or
information that you want distributed. Have it printed at a local print shop.
Hire people to hand these booklets out at retail outlets or high traffic areas,
inviting customer to try the product or read more about a particular issue.
Schedule a seminar at schools, office complexes or manufacturing plants if
you have information that is vital to students or workers. Discuss the
particular topic and explain the steps people can take to resolve any particular
issues. Advertise your product or public service announcement on radio
stations that appeal to your target audience. Run the advertisement frequently
in the early stages of your product introduction or public service message to
build customer awareness among customers.
Promote your product or public service message on television when your
target audience is most likely to view it. Place full-page ads in the newspaper
in the business section or in a section related to your product or public service
message.
Brand equity:
Brand equity is the marketing effects and outcomes that accrue to a product
with its brand name compared with those that would accrue if the same
product did not have the brand name. Fact of the well-known brand name is
that, the company can sometimes charge premium prices from the customer.
And, at the root of these marketing effects is customers' knowledge. In other
words, customers' knowledge about a brand makes manufacturers and
advertisers respond differently or adopt appropriately adept measures
for the marketing of the brat d. The study of brand equity is increasingly
popular as some marketing researchers have concluded that brands are one of
the most valuable
assets a company has. Brand equity is one of the factors which can increase
the financial value of a brand to the brand owner, although not the only one.
Elements that can be included in the valuation of brand equity include (but
not limited to):changing market share, profit margins, customer recognition of
logos and other visual elements,

31brand language associations made by customers, customers' perceptions of

quality and other relevant brand values.
There have been three different perspectives for considering brand equity;
The customer- based perspectives, the financial perspectives and combined
perspectives. While this study focus on the customer based perspectives.

Customer- Based Brand Equity.

The advantage of conceptualizing brand equity from the Customer- based
perspective is that it enables managers to consider specifically how their
marketing programs improves the value of their brands in the minds of
customers. Within the marketing literature, operationalization of customer
based-brand equity usually falls into two groups. Customer perception
(customer awareness, brand associations, perceived quality) and customer
behavior (brand loyalty, willingness to pay a high price).
Customer- Based Brand Equity is defined as "a set of Brand asses aid
liabilities linked to a brand, its name and symbol that add to or subtract from
the value provided by a product or service to a firm's customers.
Factors influencing Customer awareness:
Customer Awareness refers to the strength of a brand's presence in the
customer's mind. Awareness is measured according to the different ways in
which customers remember a brand, ranging from recognition to recall to top
of the mind. Some of the major factors affecting customer awareness are
Brand Name: One of the most important factors affecting Customer
awareness is the brand name. Brand name plays an important part in
creating awareness for a brand. Also whether the name is really very
meaningful or completely baseless they both affect customer awareness.

Advertising: Advertising also helps to create Customer awareness in a big

way. Take any brand name Fevicol, Vicks, Pepsi all have used ads for creating
awareness among their customers.

Celebrity: Another important factor affecting Customer awareness is the

celebrities endorsing the Brand. Whenever you see a celebrity you love
endorsing abrand you tend to propagate the Brand.

Parent Company: To a large extent the parent company helps in

promoting a brand. The parent company in many cases is so popular that its
brand automatically become popular and people become aware about the
product.
Sales Promotions and Offers: It also helps in making the customers
aware of the brand. Some of the sales promotion activities that companies
carry out
help their in a big way to make their target aware of the brand.
First Mover Advantage: Usually the company that enters a product
category first has good awareness about its brand. Usually people tend to
remember the first player to enter the market.
Public Relations: The coverage that the fourth estate and magazines
provide a brand also helps in building awareness about a brand.
Direct Selling: Some of the companies use direct selling as a platform to
create customer awareness.
Peer Group Opinion: Peer group opinion also plays an important part in
the whole brandy awareness exercise. Usually people tend to discuss a lo:
about the brand and tend to share their experiences or some recent ad's they
have seen which in
urn increases customer awareness of their peers.

33 Recall of Ads: In some cases the customer awareness is also high due to
specific ad recall, which is very high. It indicates stronger brand position in
the mind. Still a; a higher level is the top of the mind recall; it is the brand,
which comes first to the mind. The top of mind awareness indicates a relative
superiority a brand enjoys above others. Sometimes a brand becomes so
dominant that it becomes the only recalled brand in the product category.
Very few brands are able to achieve dominance.
Brand Association:
The association's customers make with brand support brand equity. These
associations may include product attributes, a celebrity spokesperson or a
symbol. Brand associations are driven by brand identity-what the:
organization wants the brand to stand for in the customers mind. A key to
brand building then is to develop and implement brand identity.
One key to successful brand building is to develop a brand identity - to know
what the brand stands for and to effectively express that identity.
Invariably all brands come to acquire a meaning in the mini of the customer.
Customers associate different dimensions of the product including its use and
use situations to the brands. Brand association, therefore, is anything linked to
the memory of a brand.

Brand identity:
Brand identity is a unique set of brand associations that the braid strategist
aspires to create or maintain. These associations represent what the brand
stands for and imply a promise to customers from the organization members.
Brand identity should establish a relationship between the brand and the
customer by generating a value proposition involving functional, emotional or
self expressive benefits.
34 Factors in Customer Adoption of Internet Banking
In this section, we first describe the theoretical framework and second,
provide findings relating to some important gender differences discovered.
The theoretical framework was developed from the themes identified in the
analysis results, as follows. We first observed that some themes were deemed
more important than oth0ers by participants when making their banking
service delivery channel choices and selected these as factors in the model.
Second, we noted that several of these factors appeared
Interrelated. Third, a temporal sequence for some factors was suggested by
the way participants linked these factors in the data. A summary of the
framework follows, with more important factors as indicated by the analysis
noted in the relevant descriptions. At the top of figure 1, the framework shows
that a bank must first attract banking customer attention to the internet
banking service before the customer, will consider internet banking. However,
unless the customer has a high level of internet accessibility at home or at
work, she is unlikely to consider using internet banking. The customer also
assesses whether it is convenient to conduct her banking that way
(Convenience), how usable die application appears (usability), and her
perceived competence at internet use and banking application use (self-
efficacy). The four factors of accessibility, self-efficacy, convenience and
usability are interrelated. The customer also considers whether the perceived
relative advantages of internet banking compared with other banking forms
outweigh perceived risks and costs. In addition, the availability of sufficient
support and in depth knowledge from the bank and its employees contribute
significantly to the adoption decision.
Rights and Duties of Customers:
As codified under the Indian Laws the Customers have the following Rights:
 Right to Safety—to protect against hazardous goods
 Right to be Informed—about price, quality, purity
 Right to choose—access to a variety of goods and services at
competitive prices.
 Right to be Heard—customers interest and welfare must be taken care
of
 Right to seek Redressed—protection against unfair trade practices and
settling
 genuine grievances.
 Right to Customer Education.—Knowledge about goods and issues
related tocustomers.35
Duties:
 Get a bill for every important purchase and also the Warranty card
 Check the ISI mark or Ag mark on the goods
 Form customer awareness groups
 Make a complaint on genuine grievances.
 Customers must know to exercise their rights.

Research Methodology
Research Methodology is a way systematically to solve the research problem.
It may be understood as a science of studying how research is done
scientifically. It is necessary for the researcher to know not only the methods
or techniques b A also the methodology.
Research design:
Research design is the plan, structure, and strategy of investigation conceived
so as to obtained answers to research questions. Research design is purely a
framework or a plan for study that guides in the collection of data. Descriptive
research design is adopted for analyzing the data.
Research Method:
The research design is a Descriptive Research. Descriptive statistics was
tabular, graphical & numerical summaries of data. Its main purpose is to
facilitate the presentation and INFERENCE of data. Descriptive Research
design involves description of the variables making up the demographic and
geographic profile of the sample

Source of data:
Primary Data:
Primary data has collected directly from customers through structured
questionnaires (Individual sample units)
Secondary Data:
Secondary data has collected from the various magazines, journals, website of
HDFC BANK and various websites.
Sampling Method:
The population includes male and female customers residing in the area of
Narsipatnam with the criteria: Customers with HDFC bank. In this project
convenience sampling method is followed.
38 Definition: Convenience.
In convenience sampling, a sample is obtained by selecting convenient
population elements from the population.
Sample Size:
Our Sample size was 150, who fulfill the basis criteria- Customers with HDFC
bank.
Sampling unit:
A sample unit is a single individual, who is having HDFC bank accounts.
Data collection method:
Self-administered Personal survey method was used to collect the necessary
data. For this purpose appropriate questionnaires were designed.
Data collection instrument:
Appropriately designed questionnaire to facilitate self-administered surveys
with simple standard questions were used to collect data.
Structure of Questionnaire:
The questions formulated were structured and non-disguised. The questions
were asked in order to get all the necessary information and to see that the
respondents could answer them with case. This pattern adopted facilitated in
analyzing the data.

Types of questions asked:

1. Multiple choice questions
Many choices of responses are given and the respondent chooses one
response. The advantage of this type is easy tabulation and quick response by
the respondent.

2. Dichotomous questions
This type of questions is of 'Yes' or 'No' format. There are only two choices of
answers and the respondent has to choose either 'Yes' or 'No'.
3. Open questions
These are also known as 'free-answer' type questions. 40

The statistical tool used for analysis of the data is Chi-square test.
Based on the answer received on the question in the questionnaire, the
following analysis and findings have been derived.
Chi-square test:
Chi-square is a non-parametric test which can be used to determine
categorical data shows dependency or that two classification are
independent. It can also make comparisons between the theoretical
population and actual data, when categories are used. It is mostly used most
frequently by marketing researches to test hypothesis. This test is employed
for testing hypothesis when distributed population is not known and when
nominal data is to be analyzed. Chi-square aims at determining whether the
difference exists among graphs of data or whether the differences are due to
sampling. Chi-square analysis is used to find out dependency between two
different attributes.
Where,
 Oi = Observed frequency
 Ei = Expected frequency
The Ei can be calculated as,
Ei = (Row total * Column total)/ Grand total
The calculated value of 2 is compared with table value of 2 for given
degrees of freedom at specified level of significance. It is accepted when the
calculated value is lesser than tabulated value and rejected when the
calculated value is greater than the table value
 DATA ANALYSIS

AGE CATEGORY FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

18-23 Years 10 20 20

24-29 Years 17 34 54

30-35 Years 15 30 84

35 Years and above 8 16 100

TOTAL 50 100

Sales

18-23 Year
24-29 Year
30-35 Year
35 and above

INTERPRETATION
From the table and graph above it can be seen that

 20% respondent’s age are 18 to 23 years.

 34% respondent’s age are 24 to 29 years.

 30% respondent’s age are 30 to 35 years.

 16% respondent’s age are 35 to above years.

Ques. Educational qualifications

 CATEGORY FREQUENCY PERCENTAGE CUMULATIVE
PERCENTAGE

UNDER 13 26 26
GRADUATE

GRADUATE 20 40 66

POSTGRADUATE 17 34 100

TOTAL 50 100

Sales

UNDERGARDUATE
GRADUATE
POST GRADUATE

INTERPRETATION

From the table above it can be seen that.

  26% respondents are Under graduate.
 40% respondents are Graduate.
 34% respondents are Post graduate.

TANGIBILITY DIMENSION OF SERVICE QUALITY (Questions1 to 4):

Physical facilities, equipments and appearance of personnel
Ques.1 HDFC bank has modern looking equipment.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

STRONGLY 5 10 10
DISAGREE
DISAGREE 25 50 60

UNCERTAIN 16 32 92

AGREE 4 8 100
TOTAL 50 100
 Sales

STRONGLY DISAGREE
DISAGREE
UNCERTAIN
AGREE

INTERPRETATION

HDFC bank has modern-looking and hi-tech equipments. Here analysis show
that most of the respondents disagreed with this statement. Among the total
respondents 50% disagreed, 32% were neutral and 8% agreed. After analysis
I found that majority of the respondents think that HDFC Bank do not have
modern looking equipments or no hi-tech equipments.
Ques.2 The bank's physical features are visually appealing.
SCALE FREQUENCY PERCENTAGE CUMULATIVE
PERCENTAGE

DISAGREE 4 8 8

UNCERTAIN 29 58 66

AGREE 17 34 100

TOTAL 50 100

Sales

DISAGREE
UNCERTAIN
AGREE
INTERPRETATION
HDFC bank’s physical facilities are visually appealing. From this statement I
found that 17 persons agreed. 29 persons were uncertain and 4 persons
disagreed. This means 58% people
were uncertain about this statement. Out of the total respondents only 4%
disagreed and no one strongly agreed or disagreed with the statement. 17%
people agreed that HDFC bank physical facilities are visually appeal in
Ques.3 The bank's reception desk employees are neat appearing.
SCALE FREQUENCY PERCENTAGE CUMULATIVE
PERCENTAGE

DISAGREE 5 10 10

UNCERTAIN 21 42 52

AGREE 18 36 88

STRONGLY 6 12 100
AGREE
TOTAL 50 100
 Sales

DISAGREE
UNCERTAIN
AGREE
STRONGY AGREE

INTERPRETATION
HDFC bank employees appear neat. Here analysis shows that majority were
neutral. Among the total respondent 21 respondents were neutral, 18 people
agreed and 6 respondents strongly agreed. The rest disagreed. From analysis I
found that some respondents agreed with this statement but most of the
respondents think the employees of the HDFC bank appear neat.
Ques.4 Materials associated with the service (such as pamphlets or
statements) are visually appealing at the bank.
SCALE FREQUENCY PERCENTAGE CUMULATIVE
PERCENTAGE

DISAGREE 7 14 14

UNCERTAIN 22 44 58

AGREE 18 36 94

STRONGLY 3 6 100
AGREE
TOTAL 50 100

Sales

DISAGREE
UNCERTAIN
AGREE
STRONGLY
AGREE

INTERPRETATION
Materials associated with the service are visually appealing at HDFC bank.
Here 36% respondents agreed with this statement and 6% strongly agreed
with this statement. 44% were neutral that is most and 14% disagreed. There
was no respondent who strongly disagreed. Hence, in general it can be
concluded that materials associated with the services such as pamphlets or
statements are visually appealing

RELIABILITY DIMENSION OF SERVICE QUALITY (Questions 5 to 8):

Ability to perform the promised service dependably and accurately
Ques.5 When the bank promises to do something by a certain time, it does so.
SCALE FREQUENCY PERCENTAGE CUMULATIVE
PERCENTAGE

STRONGLY 2 4 4
DISAGREE
DISAGREE 26 52 56

UNCERTAIN 5 10 66

AGREE 14 28 94

STRONGLY 3 6 100
AGREE
TOTAL 50 100
 Sales

STRONGLY DISAGREE
DISAGREE
UNCERTAIN
AGREE
STRONGLY AGREE

INTERPRETATION
My sample size was 50. Here analysis shows that among the total respondents
26 respondents disagreed and 14 respondents agreed with this question. Also
I found that 5 people were neutral and 2 people strongly disagreed. Hence I
concluded that majority of them disagreed that the bank when promises to do
something by certain time, it does so.
Ques. 6 When you have a problem, the bank shows a sincere interest in
solving it.
SCALE FREQUENCY PERCENTAGE CUMULATIVE
PERCENTAGE

DISAGREE 3 6 6

UNCERTAIN 14 28 34

AGREE 26 52 86

STRONGLY 7 14 100
AGREE
TOTAL 50 100

Sales

DISAGREE
UNCERTAIN
AGREE
STRONGLY AGREE

INTERPRETATION
When you have a problem, HDFC bank shows sincere interest in solving it.
After analysing this statement I found that most of the respondents agreed i.e.
52% respondents agreed. Also I found that 28% were neutral with this
statement and 6% were committed with disagree. There was no one who
strongly disagreed. Hence HDFC bank can be said to be reliable.

Ques.7 The bank performs the service right the first time.
SCALE FREQUENCY PERCENTAGE CUMULATIVE
PERCENTAGE

STRONGLY 2 4 4
DISAGREE
DISAGREE 8 16 20

UNCERTAIN 17 34 54

AGREE 17 34 88

STRONGLY 6 12 100
AGREE
TOTAL 50 100
 Sales

STRONGLY DISAGREE
DISAGREE
AGREE
STRONGLY AGREE
UNCERTAIN

INTERPRETATION
Total sample size was 50. Here analysis shows that among the total
respondents 17 people agreed with this statement. They think that HDFC bank
performs the services right the first time. 6 people strongly agreed with this
statement. Also 17 people were neutral and the rest of the respondents
disagreed and strongly disagreed.
Ques.8 The bank insists on error free records

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE
DISAGREE 5 10 10

UNCERTAIN 10 20 30

AGREE 23 46 76

STRONGLY 12 24 100
AGREE
50 100
TOTAL

Sales

DISAGREE
UNCERTAIN
AGREE
STRONGLY AGREE
Bank insists on error free records. HDFC bank has proved from my analysis
that it surely insist on error free records as 46% respondents agreed with this
statement and 24% strongly agreed. Only 10% respondents disagreed and no
one strongly disagreed.

RESPONSIVENESS DIMENSION OF SERVICE QUALITY (Question 9 to 12):

Willingness to help customers and provide prompt services
Ques. 9 Employees in the bank tell you exactly when the services will be
performed.
SCALE FREQUENCY PERCENTAGE CUMULATIVE
PERCENTAGE

STRONGLY 6 12 12
DISAGREE
DISAGREE 8 16 28

UNCERTAIN 13 26 54

AGREE 18 36 90

STRONGLY 5 10 100
AGREE
TOTAL 50 100
 Sales

STRONGLY DISAGREE
DISAGREE
UNCERTAIN
STRONGLY AGREE
AGREE

INTERPRETATION
Employees in the bank tell you exactly when the services will be performed.
Majority of the respondents agreed with this statement. 26% respondents
were uncertain. At the same time 16% disagreed and 12% Strongly disagreed
with this statement.

MEASURING SERVICE QUALITY DIMENSIONS

Measuring the quality of a service can be a very difficult exercise. Unlike
product where there are specific specifications such as length, depth, width,
weight, colour etc. a service can have numerous intangible or qualitative
specifications. Parasuraman, Zeithaml, and Berry (1985) provide a list of
determinants of service quality: access, communication, competence,
courtesy, credibility, reliability, responsiveness, security, understanding, and
tangibles. A total of five consolidated dimensions of service quality are:
Tangibles (ques.1 to 4) - Physical facilities, equipments and appearance of
personnel Reliability (ques.5 to 8) - Ability to perform the promised service
dependably and accurately Responsiveness (ques.9 to 12) – Willingness to
help customers and provide prompt services Assurance (ques.13 to 16) –
(including competence, courtesy, credibility and security) Knowledge and
courtesy of employees and their ability to inspire trust and confidence
Empathy (ques.17 to 20) – (including access, communication and
understanding the customer) Caring and individualized attention that firm
provides to its customer. In order to calculate which dimension of service
quality is performing well, asample of the questions are used in the
questionnaire. Using the questionnaire, obtain the score for each of the 20
statements. After analysis of the data, Overall score to each statement is given
on a scale of 1 to 5 i.e. 1 is given to strongly disagreed i.e. the lowest score,
then 2= disagreed, 3= uncertain, 4= agreed and 5= strongly agreed. Sum the
score for each dimension of service quality to obtain a final score which tells
which dimension is performing well and which dimension needs
improvement.
The scores for each dimension are summed up and a final score is
obtained:
SERVICE QUALITY DIMENSION Points

11
1. TANGIBILITY (1 TO 4)
13.5
2. RELIABILITY (5 TO 8)
16
3. RESPONSIVENESS (9 TO 12)
14
4. ASSURANCE (13 TO 16)
13
5. EMPATHY (17 TO 20)

FINDINGS OF THE REPORT

The Reliability dimension of service quality is better as compared to empathy
and tangibility. Still the score is low. For most services, customer’s
perceptions of whether the service has been performed correctly, and not
provider-established criteria, are the major determinants of reliability.
Customers of the bank hesitate to rely on the bank. Whenever they have a
problem, the bank shows sincere interest in solving it but the services are not
performed by a certain time as promised. The employees should take this
problem seriously and take steps to remove this.

As score for Assurance is at second place after responsiveness, so the

customers of HDFC bank are very confident and feel safe while transacting
with the bank. Moreover the employees of the bank have proved to be
trustworthy. Employees are also educated enough to answer all the questions.

The score of Tangibility dimension of service quality of HDFC bank is the

lowest. The service quality factor tangible is defined by whether the physical
facilities and materials associated with the service are visually appealing at
the bank. These are all factors that customers notice before or upon entering
the bank. Customer expectations regarding visual appealing of HDFC is very
high. From my study I found that Physical facilities and modern looking
equipment are not sufficient in HDFC bank. Respondents were uncertain
about the neat appearance of the reception desk employees. So they should
work on that and try to fulfill the gap.

According to my findings, the score of Empathy is not satisfactory but not

unsatisfactory also. HDFC bank is unable to give individual attention to its
customers and is unable to understand specific needs of its customers. But
still bank has taken steps to satisfy its customers by keeping operating hours
convenient to its customers and keeping their interest best at heart.

In HDFC bank, the score of Responsiveness is highest so they are focusing on

prompt service, employees are willing to help the customers and say the exact
time when the services will be performed. Employees at bank give their
customers first preference and are always ready to help them. Overall HDFC
bank‟s responsiveness dimension of service quality is the highest.

According to the customer perception, HDFC bank is highly responsive.

Customers are assured while transacting with the bank. The reliability
dimension is lower than the first to dimension. They feel that the bank is
unable to give them individual attention and its equipments are not modern
and sufficient for the bank.

There is not much gap between all the dimensions, this shows that HDFC
BANK is a better service provider in all the dimensions i.e. reliability,
assurance, tangibility, responsiveness and empathy. As a result of which, the
customers are satisfied with the service offered by HDFC bank.
 CONCLUSION

Based on the study conducted it can be concluded that responsiveness,

assurance and reliability are the critical dimensions of service quality of HDFC
bank and they are directly related to overall service quality. The factors that
may delight customers tend to be concerned more with the intangible nature
of the service, commitment, attentiveness, friendliness, care, and courtesy.
The employees give prompt services, always are ready to answer
the questions and are trustworthy. The main sources of dissatisfaction appear
to be cleanliness, up to date technology modern equipments, and neatly
dressed up employees. The Tangibility dimension of service quality of HDFC
bank is highly disappointing and serious steps are needed to be taken to
enhance this dimension. Customers of the bank are dissatisfied with the
empathy dimension. To satisfy these customers, the management can take
some attempts, noted earlier as recommendations.
The study brings about the areas which require urgent attention
of the employees, the management, and the policy makers of the industry.
These are areas in which customers are hugely dissatisfied with the services
of the banks against their expectation. This high degree of dissatisfaction
resulting from the services received clearly questions the design of services or
subsequent response of the bank employees. These limitations are too serious
to be avoided as these question the front-line people dealing with the
customers and the approach of the management in taking customers
seriously.
The management should understand the benefits of service quality. It include
increased customer satisfaction, improved customer retention, positive word
of mouth, reduced staff turnover, decreased operating costs, enlarged market
share, increased profitability, and improved financial
performance. In the days of intense competition, superior service is the only
differentiator left before the banks to attract, retain and partner with the
customers. Superior service quality enables a firm to differentiate itself from
its competition, gain a sustainable competitive advantage, and enhance
efficiency. Thus, improving service quality leads to the customer satisfaction
and, ultimately, to customer loyalty.
 RECOMMENDATIONS

Reliability is an obvious place to start. Customers of the bank want to know

their resources are safe and within trustworthy institutions. A way to ensure
this peace of mind would be to take steps to ensure bank employees are well
trained, so each bank associate is able to offer complete and comprehensive
information at all times. Consistent policies combined with a knowledgeable
staff will foster a high degree of institutional cohesion and reliability.

Responsiveness, again when associated with a well-trained staff and timely

answers to service-related questions, would make significant inroads into
causing HDFC bank be regarded as responsive. Staff should be encouraged to
present relevant options to banking customers in a manner that does not
resemble salesmanship so much as a desire to serve.

Intangibles please customers just as much as tangibles in the banking

industry. People tend to visit the same branch of a bank over and over again.
Usually, this is a location close to their home or their workplace. It is natural
that customers become comfortable and habituated to these branch banks, for
the same reason they develop familiarity with a neighborhood supermarket or
convenience store. It makes sense that bank employees would be encouraged
to learn to recognize these regular customers, learn their names, and begin to
identify their basic service requirements.

Learning to understand customers‟ needs will allow bank associates to offer

enhanced services, perhaps lowering customers‟ banking costs and increasing
their investment potential. This could also open up the possibility of increased
profits for banks, for when perceived as more service and customer oriented,
they will, in effect, become a useful
and pleasant way to “shop.” Keeping the bank with up-to-date technologically
are important factors. Modern equipments, new improved technology should
be replaced with the old ones. If the staff inside is pleasant and well-informed,
in an aesthetically pleasing environment, then customer satisfaction will be
high. The five-dimensional structure could possibly serve as a meaningful
framework for tracking a bank’s service quality performance over time and
The five-dimensional structure could possibly serve as a meaningful
framework for tracking a bank’s service quality performance over time and
comparing it against the performance of competitors. Items on some
dimensions should be expanded if that is necessary for reliability. Thus, the
banking industries must continuously measure and improve these dimensions
in order to gain customers‟ loyalty.
 BIBLIOGRAPHY

References Kotler Philip, marketing management, (Pearson education, 12th

edition) Malhotra K. Naresh, marketing research (An applied orientation),
Research design, (Prentice hall of India pvt. 5th edition) Zeithmal V. A.,
Grembler D.D, BitnerM.j, and Pandit A.: Service Marketing Integrated
customer Focus across the Firm (4th Edition)
M.K. Rampal : Service Marketing
Websites
www.hdfcbank.com
www.hdfcindia.com
www.wikipedia.org
www.marketresearch.com
 ANNEXURE QUESTIONNAIRE
Respected Sir/Madam
I am student of WORLD COLLEG OF TECHNOLOGY AND MANAGEMENT,
conducting a survey on “SERVICE QUALITY OF HDFC BANK”. The following
statements relate to your feelings about the HDFC bank. Please show the
extent to which you believe HDFC bank has the feature described in the
statement. I request you to √ the option which in your opinion are believed to
be true.
Name:
Age:
Educational Qualifications

QUESTIONS Strongly Disagree Neither Agree Strongly

Disagree agree Agree
Nor
disagree

1.HDFC bank has modern

looking
equipment.

2. The bank's physical

features are visually
appealing

3. The bank's reception

desk employees are
neat appearing.

4. Materials associated with

the service (such
as pamphlets or
statements) are visually
appealing at the bank.

5. When the bank promises

to do something
by a certain time, it does
so.

6. When you have a

problem, the bank
shows a sincere interest
in solving it.

7. The bank performs the

service right the
first time.

8. The bank insists on

error free records.

9. Employees in the bank

tell you exactly
when the services will
be performed.

10. Employees in the bank

give you prompt
service.

11. Employees in the bank

are always
willing to help you.

12. Employees in the bank

are never too
busy to respond to your
request.

13. The employees of the

bank are
trustworthy.

14. The behavior of

employees in the bank
instills confidence in
you.

15. You feel safe in your

transactions with
the bank.

16. Employees in the bank

have the
knowledge to answer
your questions.

17. The bank gives you

individual attention.

18. The bank has operating

hours convenient
to all its customers
19. The bank has your best
interests at heart.

20. The employees of the

bank understand
your specific needs.