CHAPTER -1

INTRODUCTION

Internet banking software provides enormous personal and corporate

banking services for easy access such as viewing account balances, obtaining
statements, checking recent transaction summary, making payments, etc.
HDFC Bank is the premier bank in the private banking service industry. It
has an enviable network of over 1416 branches spread over 550 cities across
India. All branches are linked on an online real–time basis and it has a
network of about 3382 networked ATMs across these cities. The promoter of
the company incepted Housing Development Finance Corporation in 1977
and enjoys an immaculate track record in India as well as in international
markets. Its huge investment in wireless banking made operations secure
and thereby made more customers rely on their virtual networking. It
showcased 'World Class Banking' to the Indian banking industry and is now
ranked No.1 by the overwhelming customers as per Forbes World's Best
Bank Survey.

In the present scenario online services have become an added feature in the
banking sector. Online banking or Internet banking allows customers to
conduct financial transactions on a secure website. Credit goes to internet
that provided ultimate ease to the customers at their door step. Online
banking allows people to perform all the banking related activities such as
money transfer, past transactional information, cash withdrawals and
deposits etc with a just one click of a mouse. Clients can easily check the
account balance every day just by visiting the website of their bank. This
provides the place and time utility to people provided if one has Internet
access. Online banking also eliminates unnecessary waste, which an
organization incurs in the form of office supplies. This facet has also helped
in meeting the social concerns. However, using internet for money
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transaction is never been free from risk. More importantly, security is always
been an issue with Internet transactions. Despite several counter measures
taken by the banks in the form of information encryption, firewalls,
encoding etc but still reluctance prevails in relaying totally at online banking
especially in developing countries like India. This led to the foundation of
this study. The core purpose of this research study was to figure out the most
critical factors having an impact on consumer perception towards online
banking in India with the help of Technology Acceptance Model (TAM)
(Davis and Venkatesh, 1996; Davis et al., 1989).Online banking was
introduced in the 80’s but its growth across the globe took place in the 90’s.
Europe has been and still is the leader in Online banking technology and
usage (Schneider, 2001). In Hyderabad city, many of banks introduce online
banking. By introducing online banking, its help to build reputation and
increasing the customers towards banks. Online banking, also known as
internet banking, e-banking or virtual banking, is an electronic payment
system that enables customers of a bank or other financial institution to
conduct a range of financial transactions through the financial institution's
website. The online banking system will typically connect to or be part of the
core banking system operated by a bank and is in contrast to branch banking
which was the traditional way customers accessed banking services. To
access a financial institution's online banking facility, a customer with
internet access will need to register with the institution for the service, and
set up a password and other credentials for customer verification. The
credentials for online banking is normally not the same as for telephone or
mobile banking. Financial institutions now routinely allocate customers
numbers, whether or not customers have indicated an intention to access
their online banking facility. Customer numbers are normally not the same
as account numbers, because a number of customer accounts can be linked to
the one customer number. Technically, the customer number can be linked

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to any account with the financial institution that the customer controls,
though the financial institution may limit the range of accounts that may be
accessed to, say, cheque, savings, loan, credit card and similar accounts.

OBJECTIVE
The main objective of this study is to examine the perception level of
customers HDFC bank in Hyderabad. In addition, the study's objective was
accomplished through the following objectives:
 To study the Socio -economic structure of demographical respondents
of HDFC bank
 To study the perception level of customers towards E- banking services
of HDFC bank

 To analyse the motivational factors influenced on customer perception

towards HDFC bank
 To identify the problems faced customers towards E-banking services of
HDFCB bank

 To study customer’s perception towards innumerable e-banking services

provided in HDFC bank.

 To identify the factors that influence customers towards e-banking

services provided in HDFC bank.

 To analyse the core attributes of e-banking services offered by HDFC

bank in Chennai City.

 To find out the opinion of customers towards the improvement of e-

services offered by HDFC bank.
 To study the Socio -economic structure of demographical respondents
of HDFC bank

SCOPE OF THE STUDY

A study on customer satisfaction level regarding HDFC bank is study of

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customer satisfaction level regarding various services provided by the
HDFC bank. The HDFC bank provides various utility services to their
customers. The purpose of this study is to analyze the satisfaction level of
the customer towards the services providing by the HDFC bank. The
research covers the customer’s opinions on banking services which will be
helpful for further development and growth of banking venture of HDFC
bank. This research focuses on the level of customer satisfaction derived
from banking services of HDFC Bank in Meerut district of Uttar Pradesh.
METHODOLOGY
The study is concerned with the customer perception towards online
banking services of HDFC bank based on that, primary data and secondary
data, the primary data were collected directly from the sample customers
through a well devised questionnaire in Hyderabad city. Secondary data
were collected from books, journals, research articles and magazines for the
purpose of review of literature. Convenience sampling method is used for
the study. The sample size of the bank customers is 162.The data analysed by
using percentage method, ANOVAs method used for data analysis. Data
was presented in the form of tables.

LIMITATION
 As the geographical area of the study is limited to Hyderabad area only,
Hence the findings and conclusion has its own limitations.
 A convenience sample method was used for the data collection, which
makes the results not readily generalizable
 The study carried out to understand the customer performance towards
online banking of HDFC.

CHAPTER-2
REVIEW OF LITERATURE
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Technology has always been a major driver of bringing changes and making
things easier in timely manner. Technological breakthroughs have brought
major changes especially from the last century. Internet is just one of the
contributions of technology that has reshaped almost every aspect of our
lives. Technology also changed banking of today from traditional banking to
online banking. There can be different factors that influence the use of online
banking.
Adoption of online banking services can be increased by the availability of
quality internet connections like broadband (Al-Somali et al., 2009). But
certain barriers exist that hinders the acceptance of online banking which
differ from environment to environment. As according to the study of Laforet
and Li (2005) perception of risks as well as computer and technological skills
are the main factors causing obstruction in online banking acceptance.

Internet banking services has not only reduced the operating costs to the
banks but it also helped in increasing the customer satisfaction and customer
retention (Polatoglu and Ekin, 2001), Safeena (2010) determined the
consumer attitude on internet banking adoption. Finding shows that
perceived usefulness, perceived ease of use, consumer awareness and
perceived risk are the important determinants of online banking adoption
and have strong and positive effect on customers to accept the online banking
system. Rao, K. Rama Mohana and Lakew, Tekeste Berhanu (2011)
examines the service quality perceptions of customers of public sector and
private sector banks in the city of Visakhapatnam, India. The study reveals
that the Reliability and Assurance dimensions of service quality scored the
highest ratings while the Tangibles dimension got the lowest score.
Moreover, the study found a strong dissimilarity in service quality
perceptions between customers of private sector and public sector banks.

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(Mohammad and Alhamadani, 2011) examined the level of service quality of
commercial banks in Jordan and its effect on customer satisfaction based on
the SERVQUAL model. Data was collected from 260 randomly selected
customers from thirteen commercial banks of Jordan and analysed through
multiple regression analysis. They found that five dimensions of service
quality viz. reliability, responsiveness, empathy, assurance, tangibles were
important antecedents of customer satisfaction.

(Mohammed Naved Khan, Naseem Abidi and Surabhi Singh, 2015)

identified and explored ways and means of the major concerns inhibiting the
adoption of IB in India. The research targeted 400 bank customers from the
Delhi NCR (National Capital Region). Multiple regression & Correlation
analysis were used to analyse the data. The study found that awareness and
safety & security would bring about positive changes in usage of IB and the
issues of comfort, satisfaction, physical presence would bring negative
impacts on intentions of usage of IB. They suggested that the banks should
focus on strategic consumer groups to maximize their revenues from IB and
concluded that concerns had a significant impact on the adoption of IB by
customers.

(Amola Bhatt, 2016) determined the usage pattern of mobile banking and the
factors which influence the adoption of mobile banking services. A sample
size of 200 was collected from public bank account holders and private bank
account holders and One-way ANOVA (analysis of variance) independent
sample t-test was used to test the hypothesis. She found frequent users of
mobile banking and identified time-efficient, safety, convenience, operational
Simplicity as the influencing key factors. The results found that the identified
factors could be the influencing mediators for increasing the reach of mobile
banking among the customers. The study also suggested that spreading

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awareness towards the identified factors would certainly help the banks.

Manish Mittal and Arunna Dhademade (2005) they found that higher
profitability is the only major parameter for evaluating banking sector
performance from the shareholders point of view. It is for the banks to
strike a balance between commercial and social objectives. They found
that public sector banks are less profitable than private sector banks. Foreign
banks top the list in terms of net profitability. Private sector banks earn
higher non-interest income than public sector banks, because these banks
offer more and more fee based services to business houses or corporate
sector. Thus there is urgent need for public sector banks to provide such
services to stand in competition with private sector banks

I.M. Pandey (2005): An efficient allocation of capital is the most important

financial function in modern times. It involves decision to commit the
firm's funds to the long term assets. The firm’s value will increase if
investments are profitable and add to the shareholders wealth. Financial
decisions are important to influence the firm’s growth and to involve
commitment of large amount of funds. The types of investment decisions
are expansion of existing business, expansion of new business and
replacement and modernization. The capital budgeting decisions of a firm
has to decide the way in which the capital project will be financed. The
financing or capital structure decision. The assets of a company can be
financed either by increasing the owners claims on the creditors’ claims. The
various means of financing represent the financialstructure of an enterprise.

Medhat Tarawneh (2006) financial performance is a dependent variable

and measured by Return on Assets (ROA) and the intent income size. The
independent variables are the size of banks as measured by total assets of
banks, assets management measured by asset utilization ratio (Operating

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income divided by total assets) operational efficiency measured by the
operating efficiency ratio (total operating expenses divided by net income)

Vasant desai (2007): The Reserve Bank of India plays a very vital role. It is
known as the banker’s bank. The Reserve Bank of India is the head of all
banks. All the money formulations of commercial banks are done under the
Reserve Bank of India. The RBI performs all the typicalfunctions of a good
central bank as it is involved in planning the economy of the country. The
main function is that the RBI should control their credit. It is mandatory for
the Bank to maintain the external value of the rupee. Major function is that it
should also control the currency.

K. C. Sharma (2007)
Banking has entered the electronic era. This has been due to reforms
introduced under the WTO compliances. Private sector banks have been
permitted to open their shops in the country. These banks are either foreign
or domestic banks with foreign partnerships. Some of them have been set up
by Development Financial Institutions in order to embrace concept of
universal banking, as practiced in advanced countries. The private sector on
the other hand have began their high tech operations from the initial stage
and made the elite of the country to taste the best banking practices that
happens in the western countries. They have foreseen the digital world and
have seen the emerging electronic market, which has encouraged them to
have a better customer service strategy that would be able to deliver the
things as per customer’s requirement.

CHAPTER-3
COMPANY PROFILE

Introduction of Banking Banks are institutions that accept deposits from

customers or the public to provide loans to the poor and expand other SD

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services. Now the private sector banks are introduced and their functions are
changed. Private sector banks have become profit centers, insurance
companies and mutual funds. However, nationalized banks provide loans for
rural development activities such as education and agriculture. Therefore,
they are always service-oriented. Banks offer facilities for depositing and
withdrawing money when needed. It provides a safe place to save money and
lends money to the borrower for the job well done. They provide savings
accounts, deposits and loans using these deposits.

It is a measure of a customer's satisfaction (how pleased the customer is) with

a service or product received from an agency. Satisfaction does not only
depend on the quality and type of customer experience, but also on its
expectations.

HDFC BANK

The Reserved Bank of India approved "in principle" the first housing
development company in the year 1944, HDFC who were the first among the
others to establish a private sector bank as part of the liberal Indian banking
sector by RBI. . On August 1944, it was registered with an office based
Mumbai and received the name of "HDFC bank limited". In January 1995,
HDFC Bank began operating as a planned commercial bank. HDFC is proud
of its incredible performance not only in India but also in other international
markets. It is well known as the premier executive housing finance company
in India. To be the leader in mortgage credit market the company has
maintained a reliable growth from its inception in 1977. HDFC has secured a
broad client base from the corporate sector for its homebased credit facilities
and retail mortgage expertise in advanced and other market segments. It is
well positioned to promote the bank in the Indian market because of its strong
market reputation and its highly qualified experience in the financial markets.

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In 1995, the facile mission, ‘World Class Indian Bank’ had been the starting
point for the HDFC bank to begin its operations. They soon came to the
realisation that an individually driven mind that put great emphasis on the
product quality and service excellence would be the only way to achieve their
mission. As for today, the bank can proudly declare that they are not far from
reaching their goals.

Definition of a customer:

 Someone who has a mutual relationship with an agency and effected

by an agency

 Require and depends on one or more products or services from an

agency.

Consumers, service users or customers are usually referred to as personal

services customers. Clients can be groups or individuals. Organizations that
are motivated to provide excellent service to their customers gather feedback
from consumers and work on delivering the best customer experience.
Customer- focused organizations can:

 Listen to the customers as they design advertisements determining

their expectation.

 Focus on evaluating customer feedback and customer service

activities and performance measurement.

VARIABLES OF THE STUDY

The SERVQUAL model was first introduced in 1985 and it is one of the
popular tools used to measure service quality. SERVQUAL Model
measures the gap that exists between customer expectation and actual
service received from the customer. This model consists of five service

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quality dimensions and they are:

 TANGIBLES-Tangibles refer to the factors which represents the

physical features of the bank. They are important for banking business
as tangibles make the indelible first impression during face to face
contact between the customer and the bank. Impressive tangibles fill
the customers with confidence that they are dealing with the bank
where their financial interests are safe and secure. Examples of
tangible factors are the use of cutting –edge technology and
equipment, modern amenities and physical facilities for customers
within bank premises, appearance and deportment of bank
personnel, and above all the physical features of bank building and
inner layout which presents an ambience attractive and appealing to
customers.
 RELIABILITY-Reliability refers to the customers’ perception with
regard to the redemption of commitment by bank to render the
service honestly, sincerely, timely, and satisfactorily as envisioned by
the customer. Factors included in the reliability dimensions are such
as, ‘performing what is promised’ and doing it ‘at the promised time’
by the bank. Most importantly, reliability perception aims at
inculcating in customers’ mind the belief that the financial records and
statements as maintained and presented to customers by bank are
error free, accurate and dependable.
 RESPONSIVENESS -The ‘Responsiveness’ dimension of service
quality includes factors conditioning the customers’ perception with
regard to banks’ attention and action to issues related to customers.
Factors reflecting to responsiveness are rendering instant services,
quickness in attending to problems, promptness in taking action,
sagaciousness in decision making, disposition of grievance within

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 committed time etc. With the advancement of technology, customers
expect that their problems will be responded as soon as possible. Lack
of responsiveness would make the customers switch over to the other
banks.
 ASSURANCE -Assurance refers to the service quality dimension that
makes the customer sure that the transaction dealings are fair and safe
with the bank. Assurance involves factors like trust on the bank
employees, keeping privacy of customers’ transactions, providing
access to information to genuine customers etc. An overall feeling of
confidence in customers that bank employees have professional
knowledge and experience and render answer to customers queries
which are genuine and trustworthy is also an important attribute of
assurance.
 EMPATHY-The service quality represented by Empathy indicates the
ability of the bank to understand customers’ feelings and the
situations they are in for help and assistance. The attribute of empathy
demands an inclination in the attitude of bank personnel to give
personal consideration and priority attention to customers. It deals
with the quality of personal interaction of the employees with their
customers as well as sympathetic response to their queries and
complaints.

CUSTOMER SATISFACTION-Customer satisfaction is defined as “the

individual’s perception of the performance of the products or services in
relation to his or her expectations”(Schiffman&Kanuk) Customer Satisfaction
helps in measuring whether the products and services supplied by company
meet or further exceed the expectations of customers. Customer satisfaction is
an indicator which shows whether the customers will make repurchase
decision or not along with their loyalty (Boonlertvanich, 2011). It also

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describes that the feeling of happiness which is gained by achieving his or her
goals can be considered as satisfaction.

CUSTOMER LOYALTY- In early days’ loyalty was viewed as brand royalty

of tangible goods. But later on, many studies were carried out and the field
of loyalty was expanded. However, only few studies covered the area of
customer loyalty of services (Oliver Richard, 1997) . Customer loyalty in a
general is somewhat that consumer may reveal to a particular brand and
service (Uncles et al., 2003) .Simply, customer loyalty can be explained as
power of relationship between relative and repeated patronage of an
individual. Dick &Basu (1994) highlighted that loyalty is based on customer
attitude as well as behavioral phenomenon. Customer loyalty has two
dimension and on the basis of these two dimensions four types of loyalty
were developed and they are:

 True Loyalty

 Latent Loyalty

 Spurious Loyalty

 No Loyalty

The figure below illustrates the relationship between service quality and
customer satisfaction, which leads to customer loyalty. From the above
figure, it is crystal clear that service quality is determined on the basis of

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customer’s perception of service quality dimensions such as reliability,
assurance, responsiveness, empathy and tangibility. So service quality is
based on evaluation of these dimension. Whereas, satisfaction is
comprehensive in nature and factors such as product quality, price,
service quality and other situational and personal factors have a great
impact. Therefore, service quality and satisfaction are correlated to each
other, which leads to customer loyalty.

 Product and Service Features-Customer satisfaction is heavily

influenced by evaluation of product and services features made by
customer. In case of banking sector, customer may evaluate service
features on the basis of price level, friendliness of personnel and
level of customization of services. Especially in service sector,
service is the core product sold by the service provider.
 Price-Quality of service can be determined on the basis of price of
the product and services. Usually customers believe that higher the
prices of product or services, higher will be the service quality and
vice versa. So, customer use price as a basis to judge quality.
 Situational Factors-Situational factors are also known as
environmental factors which also affect satisfaction while
consuming services. Michael et al. (1999) describes that individual
consumption behavior also depends on the situational or
environmental factor. Situation factors are one of the general
factors that influence customer satisfaction because buying
behavior always takes place in certain situational context (Engel et
al., 1993).

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  Personal Factors-Individual perceptions, values, attitudes and
belief also influence in customer level of satisfaction. Moreover,
personal factor plays vital role in individual’s way of consuming
goods and services. So consumer consume those products which
they believe can fulfill their own needs. Hence, personal factor such
as age, gender, education level, income level also influenceslevel of
satisfaction (Boundless, 2015). On the basis of aging, individual
buying behavior differs. For instance, demand for services,
recreation, clothes, food habits differ with changes in age.

Sampling Design
Convenience sampling method used for the study. The study is conformed
to only Hyderabad city and the sampling unit is selected from the different
branches of banking industry in selected area. For understanding the
influence of E - banking determinants on the customer’s perception level
towards selected banks. The researcher decided to select a sample size of 140
respondents from different branches of banking industries in selected area.
The processing, classification, tabulation, analysis and interpretation of the
data are done with the help of SPSS 20.0 Version, the followed statistical
techniques have been applied depending on the nature of the data collected
from the respondents, and ANOVAs was used.

SIGNIFICANCE OF THE STUDY

This research will provide a comprehensive framework for service quality
dimensions with respect to customer satisfaction and customer loyalty. It
also provides innovative ways to improve service quality to customers and
revise the current services provided by the banks, if necessary. The
agencies and planners can get data and information on customer
satisfaction which will help them to improve their services. These findings

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may help planners, policy makers and researchers to identify the banks
activities and to know the existing impact of bank in the study area. This
present research also guides future researchers by providing baseline data
for huge research which will be more reliable and can be generalized.

RESULTS AND DISCUSSION

Demographic Variables: The frequency distribution of demographic
variables is presented in the following table.

Table.1
Age
No of Responses Percentage
Below 20 years 24 16.7
21-30 years 49 30.2
31-40 years 58 35.8
41-50years 17 10.5
Above 50 years 4 6.8
Gender
Male 110 67.9
Female 52 32.1
Education
SSC 19 11.7
Intermediate 31 19.1
Degree 38 23.5
PG degree 50 30.9
M.Phil/ Ph.D 24 14.8
Occupation
Student 54 33.3

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 Govt employee 28 17.3
Private employee 60 37.3
Business 20 12.4
Income for month (in rupees)
Below Rs.10,000 8 4.9
Rs.10,001-20,000 37 22.8
Rs.20,001-30,000 53 32.7
Rs.30,001-40,000 25 15.4
Above Rs.40,001 39 24.1
Total 162 100.0
Author’s findings

The descriptive analysis of all the 162 demographical variables is exhibits in

the Table 1, from that more than 35% of respondents are belonged to the age
group of 31-40 years and 30% of respondents in the group of 21-30 years,
followed by 68% of the respondents belonged male and 32% of respondents
belonged female, and 30% of respondents studied PG and with followed 23%
of respondents studied degree, 37% of respondents working as a Private
Employees, 33% are the students, and 32% of respondents earned Rs.20,001-
30,000 for month and 24% of respondents earned above Rs.40,001
respectively.

ANOVAS
ANOVA is conducted in order to understand there is any significant
difference in perception of the respondents towards E- Banking services of
HDFC bank, and their opinion on the Source of information, Online banking
services, motivational factors and problems faced by the customer through
online service with respect of the demographically has been considered for
the study is explained in the table.
Sum of df Mean F Sig.
Squares Square
Age in years Between Groups 31.114 8 3.889 3.436 .001
Within Groups 156.206 154 1.132
Total 187.320 162
Gender Between Groups 7.359 8 .920 5.319 .000

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 Within Groups 23.866 154 .173
Total 31.224 162
Education Between Groups 82.396 8 10.300 10.225 .000
Within Groups 139.005 154 1.007
Total 221.401 162
Occupation Between Groups 56.606 8 7.076 4.848 .000
Within Groups 201.394 154 1.459
Total 258.000 162
Income Between Groups 15.195 8 1.899 1.323 .003
status Within Groups 198.111 154 1.436
Total 213.306 162
Author’s findings
In order to understand whether there is any significant difference in opinion
of respondents towards source of information towards e-banking service of
HDFC bank, with respect of the demographics i.e. Age, Gender, Education,
Occupation and Income in rupees.
It is observed that from the above table, the sum of the squares of the
difference between means of different respondents ages and source of
information towards e -banking service of HDFC bank, and the Between
groups variation 31.114 is due to interaction in samples between groups. If
sample means are the close to each other. The Within variation 156.206 is due
to difference within individual samples. The table also lists the F statistic
3.436, which is calculated by dividing the Between Groups Mean square by
the Within Groups Mean Square. The Significance level of 0.001 is less 0.05, so
its indicating that null hypothesis can be rejected. So age is influence on the
source of information towards e -banking service. And followed with
demographics like Gender, Education, Occupation and income status of
between groups variations are 7.359, 82.396, 56.606, 15.195, and their Within
group variations are 23.866, 139.005, 201.394, 198.111. Followed with
significant level are 0.00, 0.00, 0.02 and 0.003. This is less than 0.05. so its
indicating that null hypothesis can be rejected. So all the demographic
variables are influenced by the source of information towards e -banking
service of HDFC bank.
CHAPTER-4
DATA COLLECTION METHOD

In this research, internal and external source of data are used. The raw
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materials were collected through researchers. Collecting data from company
records and document, these are all internal data and other data are external.

In data collection, there are 2 types-

Primary Data

In this, questionnaire is used for collecting the data.

Secondary Data

It is gathered from standard books, internal sources, newspapers and

magazines, also collecting data from external and internal sources from the
company annual reports, company additional profile and company website.

DATA ANALYSIS AND FINDINGS

 OBJECTIVE 1.To identify the dimensions of SERVQUAL that
ensure maximum satisfaction for customers in the banking sector
by using the Multiple Regression Analysis and to test the
significance of the results CHI-SQUARE TEST is used as it is useful
to establish relationship between independent(SERVQUAL) and
dependent variables(CUSTOMER SATISFACTION) with the help
of contingency table. Test of goodness of fit has been executed with
chi-square.
CUSTOMER SATISFACTION=f(Tangibility, Reliability,
Responsiveness, Assurance and Empathy)

I)TANGIBILITY-PHYSICAL FACILITIES AT THE BANK

H0-There is no significant relationship between tangibility
and customer satisfaction.
H1-There is significant relationship between tangibility

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 and customer satisfaction.

Test Statistics
a)
PHYSICAL a) PHYSICAL
a) PHYSICAL FACILITIES FACILITIES AT a) PHYSICAL
FACILITIES AT a) PHYSICAL a) PHYSICAL a) PHYSICAL THE FACILITIES
AT THE FACILITIES FACILITIES FACILITIES AT THE
BANK- Well THE AT THE AT THE AT THE BANK- BANK- Proper
designed BANK- BANK-Fan and BANK- BANK- Cleanliness and display
counter Elegant drinking Parking space Adequate staff upkeep boards at all
available. furniture water available. available. at the bank. of desks.
for seating branch
and writing premises.
available
Chi- 495.560 403.947 429.033 216.347 391.933 501.933 269.973
Square
Df 5 3 4 3 4 4 3
Asymp. .000 .000 .000 .000 .000 .000 .000
Sig.

INTERPRETATION-It is found that in all the cases the p-value is 0.000

which is less than the level of significance i.e 0.05.Hence null hypothesis
is rejected and alternative hypothesis is accepted and so there is
significant relationship between tangibility and customer satisfaction.

Reliability
H0-There is no significant relationship between reliability and
customer satisfaction. H1-There is significant relationship
between reliability and customer satisfaction.
Test Statistics
b)Reliability-Bank b) Reliability-Bank provides its b) Reliability-
performs services at the right time, Bank invests
it promises to do. on error
the service right the free records.
first time.
Chi-Square 406.567 322.267 286.427
df 4 3 3
Asymp. Sig. .000 .000 .000

INTERPRETATION- It is found that in all the cases the p-value is 0.000

which is less than the level of significance i.e 0.05.Hence null hypothesis
is rejected and alternative hypothesis is accepted and so there is
significant relationship between reliability and customer satisfaction.
Attitude of staff-Responsiveness
H0-There is no significant relationship between responsiveness
and customer satisfaction.

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 H1-There is significant relationship between responsiveness and
customer satisfaction.
c) Attitude of staff- c) Attitude of staff- c) Attitude of staff- c) Attitude of staff-
Responsiveness-Staff Responsiveness-Good Responsiveness- Responsiveness-
behaviour with the co-ordination among Prompt service by Personal interest taken
customer. staff. staff at counters. by staff in service/
solving problems.
Chi- 412.967 358.667 373.767 402.100
Square
df 4 3 4 4
Asymp. .000 .000 .000 .000
Sig.

INTERPRETATION- It is found that in all the cases the p-value is 0.000

which is less than the level of significance i.e 0.05.Hence null hypothesis
is rejected and alternative hypothesis is accepted and so there is
significant relationship between responsiveness and customer
satisfaction.

II) Empathy
H0-There is no significant relationship between empathy
and customer satisfacti on.

H1-There is significant relationship between empathy and

customer satisfaction.
Test Statistics
e)Empathy-Bank
employees will e)Empathy- e)Empathy- e) Empathy-Bank
provide customized Bank employees have the Bank employees opening hours is
services to their enthusiasm to understand the consider customer appropriate to the
customers. customer specific needs. needs in the first place. customers.
Chi- 396.567 476.800 268.960 284.347
Square
df 4 4 3 3
Asymp. .000 .000 .000 .000
Sig.

INTERPRETATION-It is found that in all the cases the p-value is 0.000

which is less than the level of significance i.e 0.05.Hence null hypothesis
is rejected and alternative hypothesis is accepted and so there is
significant relationship between empathy and customer satisfaction.
PERCENTAGE FREQUENCY DISTRIBUTION OF DEMOGRAPHIC
VARIABLES

TABLE- 1: DEMOGRAPHIC PROFILE

Page | 21
 Particu Freque Percent
lars ncy age
Gender
Male 55 55.8
Age
20-30 years 72 70.6
Educational Qualification
Undergraduates 51 50
Occupation
Private sector employees 51 50
Annual Income
Rs 1,00,000 – Rs 48 47.1
3,00,000

CUSTOMERS’ INFORMATION RELATED TO USAGE OF E-SERVICES

OFFERED BY HDFC BANK
TABLE-2: GENERAL FINDINGS

Particulars Freque Percent

ncy age
Customers of HDFC bank
2-4 years 51 50
Account type
Saving Account 85 83.3
Preference of HDFC e-banking
Sometimes 55 53.9
Preferred mode to perform e-banking
Bank app 91 89.2
Most preferred e- service
Mobile banking 48 47.1
PayZapp Usage
Yes 48 47.1
The official rating for e-banking
4 stars 24 50

Page | 22
 Security and Privacy
4 stars 59 57.6
Overall Satisfaction
Satisfied 60 55.9

CORE ATTRIBUTES OF E-BANKING SERVICES IN HDFC BANK

TABLE-3: MEAN SCORES OF CORE ATTRIBUTES THROUGH HENRY

GARRETT RANKING ANALYSIS

Particu Mean Rank

lars Scores
User-friendly service 53.51 I
Secured banking 50.74 II
Available 24*7 50.68 III
Speedy service compared to traditional 49.76 IV
banking
Effortless payment of bill 49.21 V
Nominal transaction fee 48.63 VI
Incoming and outgoing can be monitored 47.71 VII
Simple & convenient service worldwide 47.30 VII
Protect me in case of cybercrime or if cards 46.71 IX
lost/stolen
Earn cashback & bonus point 45.27 X

Table 3 shows that Rank I was assigned to the most preferred factor 'User-
friendly service’ to the customer. Rank II had been assigned to ‘Secured
banking’. The least Rank X was assigned to factor 'Earn cashback & bonus
point’.

OPINIONS TO IMPROVE E-BANKING SERVICES

TABLE-4: MEAN SCORES OF OPINIONS TOWARDS

IMPROVEMENTS THROUGH HENRY GARRETT RANKING
ANALYSIS

Page | 23
 Particu Mean Ran
lars Scores k
Avoid server issues 51.85 I
Make the customer care services more 51.79 II
user friendly
Protect customer from cybercrime 49.24 III
Minimize the charges for credit cards 48.93 IV
Reduce transaction cost 48.54 V
The existing interest rate can be 48.18 VI
improved for the account holder
Strengthen the security of e-wallet 47.97 VII
Build more trust 47.40 VIII

Table 4 shows that Rank I was assigned to the most preferred factor ‘Avoid
server issues. Rank II had been assigned to ‘Make the customer care services
more user friendly. The least Rank VIII to factor ‘Build more trust.’

TABLE NO – 1: Respondents divided on gender.

No. OF PERCENTAGE OF
SI No. PARTICULARS
RESPONDENTS RESPONDENTS

1 Male 68 68%

2 Female 32 32%

Page | 24
 3 Total 100 100%

Analysis: As per survey out of 100 respondents, there are 68% of male
responders and 32% of female responders.

Chart No - 1:
Respondents divided on gender
80%
70%68%
60%
50%

40% Male
32% Female
30%

20%
10%
0%

Male Female

Interpretation: For this survey among 100 respondents 68% of responders

(majority) are males.

Page | 25
 TABLE NO – 2: Respondents divided on age.

No. OF PERCENTAGE OF
SI No. PARTICULARS
RESPONDENTS RESPONDENTS

1 Within 25 18 18%

2 25 to 40 40 40%

3 40 to 50 25 25%

4 Above 50 17 17%

5 Total 100 100%

Analysis: As per survey out of 100 respondents, 18% of responders were

within the age of 25, 40% of responders were from the age of 25 to 40,
25% of responders were from the age of 40-50 and 17% of responders
were above 50.

Chart No -2:
Respondents divided on age

45%
40% 40%
35%
30%
25%
20% 25% Within 25
15% 25-40
10% 18% 40-50
17%
5% Above 50
0%

Within 2525-4040-50Above 50

Interpretation: For this survey the majority of the respondents, 40% of

respondents (majority) between the ages of 25-40.

Page | 26
 TABLE NO – 3: Respondents divided on occupation.

No. OF PERCENTAGE OF
SI No. PARTICULARS
RESPONDENTS RESPONDENTS

1 Student 14 14%

2 Business 32 32%

3 Employee 45 45%

4 None of the above 8 8%

5 Total 100 100%

Analysis: As per survey out of 100 respondents, 14% of responders were

students, 32% of responders had their businesses, 45% of responders were
employees and 8% of responders didn’t fall in any of these categories.

Chart No - 3:
Respondents divided on occupation
50% 45%
45%
40%
35% 32%
30%
25%
20%
15% 14%
10%
5% 8%
0%

StudentBusinessEmployeeNone of the above

Student Business Employee None of the above

Interpretation: For this survey majority, 45% of respondents (majority)

are employees when it comes to occupation.

Page | 27
 TABLE NO – 4: Respondents divided income.

No. OF PERCENTAGE OF
SI No. PARTICULARS
RESPONDENTS RESPONDENTS

1 0 to 25,000 32 32%

2 25,000 to 50,000 45 45%

3 50,000 to 75,000 13 13%

4 More than 75,000 10 10%

5 Total 100 100%

Analysis: As per survey out of 100 respondents, 32% of responders

were earning between 0 to 25,000, 45% of responders were earning
between 25000 to 50,000, 13% of responders were earning between
50,000 to 75,000 and 10% of responders were earning more than 75000.

Chart No - 4:
Respondents divided income
50% 45%
45%
40%
35%32%
30% 0 - 25,000
25% 25,000-50,000
20%
15% 50,000-75,000
10% 13%
10% More than 75,000
5%
0%

0 - 25,00025,000-50,00050,000-75,000More than
75,000

Interpretation: For this survey majority, 45% of respondents

(majority) have an income between 25,000 to 50,000.
Page | 28
 TABLE NO – .5: Preferred sector of banks.

No. OF PERCENTAGE OF
SI No. PARTICULARS
RESPONDENTS RESPONDENTS

1 Public sector banks 38 38%

2 Private sector banks 62 62%

3 Total 100 100%

Analysis: As per survey out of 100 respondents, 38% of responders

preferred public sector banks and 62% of responders preferred
private sector banks.

Chart No - 5:
Preferred sector of banks
70%
62%
60%

50%
38%
40%
30%

20%

10%

0%
Public sector banks Private sector banks

Interpretation: According to this survey 62% of respondents (majority)

prefer private sector banks.

Page | 29
TABLE NO – 6: Which service or product is preferred the most.

No. OF PERCENTAGE OF
SI No. PARTICULARS
RESPONDENTS RESPONDENTS

1 Business Loan 6 6%

2 Credit Card 2 2%

3 Personal Loan 4 4%

4 Debit Card 9 9%

5 Educational Loan 5 5%

6 Fixed Deposit 8 8%

7 Savings Account 23 23%

8 Gold Loan 4 4%

9 Home Loan 21 21%

10 Car Loan 18 18%

11 Total 100 100%

Analysis: As per survey out of 100 respondents, 6% of the responders

preferred HDFC Bank Business Loan, 2% of responders preferred HDFC
Bank Credit Card, 4% of the responders preferred HDFC Bank Personal
Loan, 9% of responders preferred HDFC Bank Debit Card, 5% of
responders preferred HDFC Bank Educational Loan, 8% of responders
preferred HDFC Bank Fixed Deposit, 23% of responders preferred HDFC
Bank Savings Account, 4% of responders preferred HDFC Bank Gold
Loan, 21% of responders preferred HDFC Bank Home Loan and 18% of
responders preferred HDFC Bank Car Loan.

Page | 30
 CHART NO - 6: Service or product preferred the most.

Business Loan Credit Card Personal Loan Debit Card Educational Loan Fixed Deposit Savings Account Gold Loan
Home Loan
HDFC Bank Car Loan

Interpretation: According to this survey 23% of respondents (majority)

prefer HDFC Savings account out of the others.

Page | 31
 TABLE NO – 7: Rate the staff on the basis of required skills and knowledge
regarding the product.

No. OF PERCENTAGE OF
SI No. PARTICULARS
RESPONDENTS RESPONDENTS

1 Poor 4 4%

2 Average 34 34%

3 Good 40 40%

4 Excellent 22 22%

5 Total 100 100%

Analysis: As per survey out of 100 respondents, on the basis of required

skills and knowledge regarding the product 4% of responders rate the
staff as poor, 34% of responders rate the staff as average, 40% of
responders rate the staff as good and 22% of responders rate the staff as
excellent.

Chart No - 7:
Rate the staff on the basis of skills and knowledge

50%
40%
40% 34%
30%
22%
20%
10%
4%
0%
Poor Average Good Excellent

Interpretation: According to the survey 40% of respondents (majority) rate the

staff as good on the basis of knowledge and skills regarding the product.

Page | 32
 TABLE NO – 4.8: Rate the staff on the basis of being friendly and
behaving in a courteous manner while dealing.

No. OF PERCENTAGE OF
SI No. PARTICULARS
RESPONDENTS RESPONDENTS

1 Poor 6 6%

2 Average 34 34%

3 Good 57 57%

4 Excellent 3 3%

5 Total 100 100%

Analysis: As per survey out of 100 respondents, on the basis of being

friendly and behaving in a courteous manner while dealing 6% of
responders rate the staff as poor, 34% of responders rate the staff as
average, 57% of responders rate the staff as good and 3% of responders
rate the staff as excellent.

Chart No - 8:
Rate the staff on the basis of being friendly and behaving in a courteous manner while dealing
60%57%

40% 34%

20%
6% 3%
0%
Poor Average Good Excellent

Interpretation: According to the survey 57% of respondents (majority)

rate the staff as good on the basis of being friendly and behaving in a

Page | 33
courteous manner while dealing.

Page | 34
 TABLE NO – 4.9: Rate the staff on the basis of behaving professional
and having a pleasing and presentable appearance.

No. OF PERCENTAGE OF
SI No. PARTICULARS
RESPONDENTS RESPONDENTS

1 Poor 2 2%

2 Average 33 33%

3 Good 45 45%

4 Excellent 20 20%

5 Total 100 100%

Analysis: As per survey out of 100 respondents, on the basis of

behaving professional and having a pleasing and presentable
appearance 2% of responders rate the staff as poor, 33% of responders
rate the staff as average, 45% of responders rate the staff as good and
20% of responders rate the staff as excellent.

Chart No - 4.9:
aff on the basis of behaving professional and having a pleasing and presentable a

60%

40% 33%
20%
20%
2%
0%
Poor Average Good Excellent

Interpretation: According to this survey 45% (majority) of respondents

rate the staff as good on the basis of behaving professional and having a
pleasing and presentable appearance.
Page | 35
 TABLE NO – 4.10: Rate the staff on the basis of willingness to listen
and respond to needs on time.

No. OF PERCENTAGE OF
SI No. PARTICULARS
RESPONDENTS RESPONDENTS

1 Poor 3 3%

2 Average 22 22%

3 Good 53 53%

4 Excellent 22 22%

5 Total 100 100%

Analysis: As per survey out of 100 respondents, on the basis of

willingness to listen and respond to needs on time 3% of responders rate
the staff as poor, 22% of responders rate the staff as average, 53% of
responders rate the staff as good and 22% of responders rate the staff as
excellent.

Chart No - 10:
Rate the staff on the basis of willingness to listen and respond to needs on time
60%53%
40%
22%22%
20%
0%
PoorAverageGoodExcellent

3%

Interpretation: According to this survey 53% of respondents (majority)

rate the staff as good on the basis of willingness to listen and respond to
needs on time.

Page | 36
TABLE NO – 11: Is the appearance of the branch neat and orderly.

No. OF PERCENTAGE OF
SI No. PARTICULARS
RESPONDENTS RESPONDENTS

1 Yes 78 78%

2 No 22 22%

3 Total 100 100%

Analysis: As per survey out of 100 respondents, 78% of responders say

yes the branch is neat and orderly and 22% of responders say no the
branch is not neat and orderly.

Chart No - 11:
Is the apperance of the branch neat and orderly
YesNo

22%

78%

Interpretation: According to this survey 78% of respondents (majority)

say yes the appearance of the branch is neat and orderly.

Page | 37
 CHAPTER-5
FINDINGS

 For this survey among 100 respondents 68% of responders

(majority) are males.
 For this survey the majority of the respondents, 40% of
respondents (majority) between the ages of 25-40.
 For this survey majority, 45% of respondents (majority) are
employees when it comes to occupation.
 For this survey majority, 45% of respondents (majority) have
an income between 25,000 to 50,000.
 According to this survey 62% of respondents (majority) prefer
private sector banks.
 According to this survey 23% of respondents (majority)
prefer HDFC Savings account out of the others.
 According to the survey 40% of respondents (majority) rate
the staff as good on the basis of knowledge and skills
regarding the product.
 According to the survey 57% of respondents (majority) rate
the staff as good on the basis of being friendly and behaving
in a courteous manner while dealing.
 According to this survey 45% (majority) of respondents rate
the staff as good on the basis of behaving professional and
having a pleasing and presentable appearance.
 According to this survey 53% of respondents (majority) rate
the staff as good on the basis of willingness to listen and
respond to needs on time.
 According to this survey 78% of respondents (majority)
say yes the appearance of the branch is neat and orderly.
 According to this survey 53% of respondents (majority)

Page | 38
 RECOMMENDATION
1. Empower Your Employees-Your customer service employees are
your frontline. As such, they need to have the right resources to
provide exceptional customer service.
2. Improve the Local Branch Experience-In a post so heavily focused
on customer-centered banking technology, it seems strange to start
with the in-person experience. But here we are, and we’ll tell you
why: This is your chance to shine.
3. By understanding their customers' needs better, the bank can
perform more effectively and efficiently.
4. By identifying the needs of customers and fulfilling them.

SUGGESTIONS
 Bank has to ensure their customers about the usage of PayZapp
service.
 It can work in flexible hours to provide better customer service
specially to aged people.
 It can make payment systems more secure and ensure proper alerts to
customers while doing a transaction.
 Bank can bring awareness among its customers about the 24/7
helpdesk to handle their queries effectively and promptly.
 It can provide attractive offers in the form of cash back or coupons to
mobile app users to promote online transactions.

CONCLUSION

Page | 39
 Now days, E-banking services have become a major weapon for survival of
banking industries. The major theme of the research was to study consumer
perception on E-banking services towards HDFC bank in the Hyderabad
city. There are four major objective and data collected with through
questionnaire. It was analysed by the percentages and ANOVAs. As per the
results 35% respondents from the 31-40 years group and 30% respondents
from the 21-30 years group, followed with that 68% of the respondents
belonged male and 32% of respondents belonged female, and 30% of
respondents studied PG and with followed 23% of respondents studied
degree, 37% of respondents working as a Private Employees, 33% are the
students, and 32% of respondents earned Rs.20,001-30,000 for month and
24% of respondents earned above Rs.40,001 respectively. The results of the
ANOVAs from the HO1 found that there is a significant impact on
demographical variable except income status by the source of information of
HDFC E- banking services, followed with that HO2 found that there is a
significant impact of E- banking services on demographical variables
respondents, HO3 found that there is a significant impact of demographical
variable except education by the problems towards E- banking services,
finally HO4 results indicated that there is significant impact of motivational
factor on age group, gender and occupation, except Education and income
status of respondents.

The main purpose of conducting this research was to identify the important
factors of customer satisfaction and customer loyalty in the context of H.D.F.C
Bank. Many similar researches have been conducted in different setting like
European, America, African countries and in few Asian countries, but only
few data are available for India. Furthermore, banking sector in India is
emerging. It plays vital role in the economic development of the country.

It has been found that-

Page | 40
  SERVQUAL Dimensions plays a vital role to ensure customer
satisfaction in banking sector.
 Reliability is the main factor that affects customer satisfaction.
 There is positive relationship between SERVQUAL Dimensions
and customer satisfaction in H.D.F.C Bank.
 There is positive relationship between customer satisfaction and
customer loyalty in H.D.F.C Bank.
 Situational factors does not have positive impact on customer
satisfaction.
The majority of the respondents regarded that the most important reason for
which they are not satisfied is not getting good loan conditions

Bibliography

1. Jeffrey H. Gitomer, Customer satisfaction is worthless, Customer loyalty is

Page | 41
 priceless, Bard press, 1998.
2. Ajit Rao, Subhash Chandra, The little book of big customer satisfaction
measurement, SAGE publications India, 2013.

3. Nigel Hill, Greg Roche, Rachel Allen, Customer satisfaction: the customer
experience through the customer's eyes, The leadership factor, 2007.

4. Nigel Hill, John Brierley, Rob Macdougall, How to measure customer

satisfaction, Gowers, 2003.

5. Richard F. Gerson, Measuring customer satisfaction, Crisp publications, 1993.

6. Ajzen I., and Fishbein M, (1975), “Beliefs, Attitude, Intention, and
Behavior: An Introduction to Theory and Research”, MA, USA: Addison-
Wesley.
7. Ajzen, I. (1991), “The Theory of Planned Behavior “ Organizational
Behavior and Human Decision Processes 50, 179-211.
8. Al-Somali, S.A., Gholami, R. and Clegg B., (2009), “An investigation into
the acceptance of online banking in Saudi Arabia”, Technovation, Vol.
29, pp. 130–141.
9. Casalo, L.V., Flavian, C. and Guinaliu, M., (2007), “The role of security,
privacy, usability and reputation in the development of online
banking”, Online Information Review, Vol. 31 No. 5, pp. 583-603.
10. Davis, F.D., Bagozzi, R.P. and Warshaw, P.R. (1989), “User acceptance of
computer

WEB REFERENCES
https://www.hdfcbank.com/aboutus/cg/annual_reports.htm
https://www.moneycontrol.com/company-facts/hdfcbank/history/HDF0
1
https://wealthhow.com/history-of-internet-banking
https://www.mymoneymantra.com/blog/these-are-the-top-10-largest-
banks-in-india/

Contents

Chapter-1 1-4

Page | 42
  Introduction
 Objective
 Need and Importance of The Study
 Research methodology
 Limitation of the study
Chapter-2 5-8

 Review of Literature
Chapter-3 9-18

 Company Profile
Chapter-4 19-36

 Analysis of Data and Interpretation

Chapter-5 37-41

 Finding and Suggestions

 Conclusion
 Bibliography

**********************

Page | 43