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



I hereby declare that project entitled submitted “CUSTOMER SATISFACTION to PUNJAB TECHNICAL




UNIVERSITY, JALANDHAR in partial fulfillment of the requirement for Master Degree of business administration (SEM –IIIrd) is my original work. It is by my own and not copied one from other.

VARUN BAWA MBA 3RD SEM 81407317174 Dated: ___________




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

Sr. Lect. Arti Mehta



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

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

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

1 2 3-4 5 6 7 8 9-10 11 12 13-16 17 18-22 23 24 25-26 28 29-30 31 32-33 7 . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Subject Covered Introduction to the study Introduction to the Banking History of Banking in India Banking structure in India Indian Banking Industry Upcoming Foreign Banks in India HDFC BANK Company Profile Key Executives Technology used in HDFC Bank Products and customer segments Business strategy Inside HDFC Bank Human resource Rupees earned-Rupees spend Recent development Achievements in 2009 SWOT Analysis Objectives Research methodology Page No.CONTENTS Sr. No.

21 22 23 24 25 26 Data analysis & interpretation Findings Suggestions Limitations Conclusion Bibliography 34-51 52 53 54 55 56 INTRODUCATION TO THE STUDY 8 .

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

nowadays after introduction of private sector banks the banks have become a profit centre and the functions become changed and now banks are doing the insurance and mutual funds also. HISTORY OF BANKING IN INDIA 10 . and rural development activities. but nationalised banks are still service oriented in extending loans for Education loan. and provides a facility to deposit and withdraw money when needed and charge for it.Banking means accepting the deposits from the customers for lending to the needy and extending the other services as to issue of dd etc. A Bank is an organization which lends money to the borrowers for a purposeful task.

Seven banks forming subsidiary of State Bank of India was nationalised in 1960 on 19th July. During those days public has lesser confidence in the banks. 14 major commercial banks in the country were nationalised. was set up in 1894 with headquarters at Lahore. Bank of Baroda. funds were largely given to traders. It formed State Bank of India to act as the principal agent of RBI and to handle banking transactions of the Union and State Governments all over the country. 23 of 1965). The following are the steps taken by the Government of India to Regulate Banking Institutions in the Country: 1949: Enactment of Banking Regulation Act. Central Bank of India. Next came Bank of Hindustan and Bengal Bank. As an aftermath deposit mobilisation was slow. 1955: Nationalisation of State Bank of India. 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. the Government of India came up with The Banking Companies Act. Abreast of it the savings bank facility provided by the Postal department was comparatively safer. It was the effort of the then Prime Minister of India. mostly Europeans shareholders.Phase I The General Bank of India was set up in the year 1786. 1971: Creation of credit guarantee corporation. To streamline the functioning and activities of commercial banks. Moreover. This step brought 80% of the banking segment in India under Government ownership. Reserve Bank of India was vested with extensive powers for the supervision of banking in India as the Banking Authority. 1969: Nationalisation of 14 major banks. In 1955. major process of nationalisation was carried out. Mrs. Between 1906 and 1913. mostly small. In 1865 Allahabad Bank was established and first time exclusively by Indians. Indira Gandhi. 1969. These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks. it nationalised Imperial Bank of India with extensive banking facilities on a large scale especially in rural and semi-urban areas. 1961: Insurance cover extended to deposits. Bank of India. The East India Company established Bank of Bengal (1809). Reserve Bank of India came in 1935. 1959: Nationalisation of SBI subsidiaries. Canara Bank. 11 . Phase II Government took major steps in this Indian Banking Sector Reform after independence. Punjab National Bank Ltd. During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948. There were approximately 1100 banks. Second phase of nationalisation Indian Banking Sector Reform was carried out in 1980 with seven more banks. and Bank of Mysore were set up. Indian Bank. Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency Banks.

Time is given more importance than money. After the nationalisation of banks. the foreign reserves are high.000%. Banking in the sunshine of Government ownership gave the public implicit faith and immense confidence about the sustainability of these institutions. The financial system of India has shown a great deal of resilience. a committee was set up by his name which worked for the liberalisation of banking practices. the capital account is not yet fully convertible. under the chairmanship of M Narasimham. The entire system became more convenient and swift. 12 . and banks and their customers have limited foreign exchange exposure. This is all due to a flexible exchange rate regime. Efforts are being put to give a satisfactory service to customers. the branches of the public sector bank India rose to approximately 800% in deposits and advances took a huge jump by 11. Phase III This phase has introduced many more products and facilities in the banking sector in its reforms measure. Phone banking and net banking is introduced. The country is flooded with foreign banks and their ATM stations. In 1991. It is sheltered from any crisis triggered by any external macroeconomics shock as other East Asian Countries suffered.1975: Creation of regional rural banks. 1980: Nationalisation of seven banks with deposits over 200 crore.

The banks which have been setup in the 1990s under the guidelines Of the Narasimham Committee are referred to as NEW PRIVATE SECTOR BANKS. These new banks have brought in state-of-the-art technology and aggressively marketed their products. there are 27 private sector banks in the banking Sector: 19 old private sector banks and 8 new private sector banks.BANKING STRUCTURE IN INDIA Scheduled Banks in India (A) Scheduled Commercial Banks Public sector Banks (28) • Nationalized Bank • Other Public Sector Banks (IDBI) • SBI and its Associates Private sector Banks (27) Foreign Banks in India (29) Regional Rural Bank (102) (B) Scheduled Cooperative Banks Scheduled Urban Cooperative Banks (55) Scheduled State Cooperative Banks (31) Here we more concerned about private sector banks and competition among them. INDIAN BANKING INDUSTRIES 13 . The Public sector banks are facing a stiff competition from the new private sector banks. Today.

Players are becoming increasingly customer centric in their approach. and technological innovations are all Contributing to this growth. increased standard of living. The country’s middle class accounts for over 320 million people. Banks are now realizing the importance of being a big player and are beginning to focus their attention on mergers and acquisitions to take advantage of economies of scale and/or comply with Basel II regulation. with Assets expected to reach US$1 trillion by 2010. analyst in Celent's banking group and author of the report. An expanding Economy. which has resulted in innovative methods of offering new banking products and services. focusing on the expansion of retail and rural banking.” says Prathima Rajan. “Indian banking industry assets are expected to reach US$1 trillion by 2010 and are poised to receive a greater infusion of foreign capital. middle class." 14 .“The banking industry should focus on having a small number of large players that can compete globally rather than having a large number of fragmented players.The Indian banking market is growing at an astonishing rate. The Indian banking Industry is in the middle of an IT revolution. In correlation with the growth of the economy. and affordability of banking products are promising factors for continued expansion. rising income levels.

The following are the list of foreign banks going to set up business in India:- • • • • • • • • • Royal Bank of Scotland Switzerland's UBS US-based GE Capital Credit Suisse Group Industrial and Commercial Bank of China 15 . This is as an aftermath of the sudden interest shown by Reserve Bank of India paving roadmap for foreign banks in India greater freedom in India. Switzerland's UBS.UPCOMING FOREIGN BANKS IN INDIA By 2009 to 2010 few more names is going to be added in the list of foreign banks in India. Among them is the world's best private bank by Euro Money magazine.

” It realized that only a single minded focus on product quality and service excellence would help us get there. India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. HDFC was ideally positioned to promote a bank in the Indian environment. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited'. HDFC is India’s premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Today. the Bank is proud to say that it is well on its way towards that goal. the Corporation has maintained a Consistent and healthy growth in its operations to remain the market leader in mortgages. a strong market reputation. HDFC Bank began operations in 1995 with a simple mission to be a “World Class Indian Bank. With its experience in the financial markets. Since its inception in 1977. large shareholder base and unique consumer franchise. as part of the RBI's liberalization of the Indian Banking Industry in 1994. 16 .WE UNDERSTAND YOUR WORLD The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an ‘in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. with its registered office in Mumbai.

It operates in three segments: Retail Banking. The wholesale banking Segment provides loans. gold. supply chain. The Retail banking segment provides various deposit products. and educational loans. commercial vehicle. and demat accounts. as well as credit cards. small and medium enterprise. emerging corporate.COMPANY PROFILE STRONG NATIONAL NETWORK HDFC BANK HDFC bank ltd provides various financial products and services. debit cards. personal. depository. and warehouse Receipt loans. and Treasury. home. investment Advisory. loans Against securities and property and health care finance Working capital finance. Public sector 17 . including savings Accounts. and transactional services. non-fund facilities. construction equipment finance. bill payments. fixed deposits. In addition. and transaction services to large Corporate. current accounts. this segment Sells third party financial products. It also offers Auto. such as mutual funds and insurance. as Well as distributes life and general insurance products through its tie-ups with insurance companies and mutual fund houses. Wholesale Banking.

295 automated teller machines in 528 cities in India.3% and net non-performing assets at 0. The Treasury Services segment operates primarily in areas.7 million and total cards issued (debit and credit cards) increasing from 7 million to 9. 2009 HDFC bank had a network of 1. It offers deposit and transaction banking products. This segment’s services include trade services.605 ATMs in 316 cities as of March 31. working capital and term finance. the Bank’s net advances grew by 35. March 2006 Cities Branches ATM’s 228 535 1323 March 2007 316 684 1605 March 2008 327 761 1977 March 2009 528 1142 3295 As of March 31.2 million. money market. India. such as foreign exchange. it provides correspondent bank services to co-operative banks. As of March 31. Against the regulatory approvals for new branches in hand.2 million to 8. foreign banks. tax collection. 2008. implying a higher market share in both segments.142 branches And 3. cash management. Whilst credit growth in the banking system slowed down to about 22% for the year ended 2008-09. The company was founded in 1994 and is based in Mumbai.6% and wholesale advances growing by 30%. 2008. the Bank’s distribution network was at 761 Branches and 1977 ATMs in 327 cities as against 684 branches and 1. and foreign exchange products. The transactional banking business also registered healthy growth with cash management volumes increased by around 80% and trade services volumes by around 40% over the previous year. central and state government departments. In addition. 2008 remained healthy with gross nonperforming assets at 1. agricultural loans.4% of total customer assets. and Equities. 18 .1% with retail advances growing by 38. and electronic banking. the Bank expects to further expand the branch network by around 150 branches by June 30. private banks. and funded non-funded treasury. the Bank stepped up retail customer acquisition with deposit accounts increasing from 6. Supply chain financing. and money Market. interest rate trading. and Institutional customers. Portfolio quality as of March 31. During the year. 2007. custodial.undertaking. and regional rural banks.

Member of Credit Approval Committee and Member of Risk Monitoring Committee Adil Patrawala Chief Operating Officer of HDFC Securities Limited and Whole time Director of HDFC Securities Limited Sunil Shah Managing Director of HDFC Securities Limited and Director of HDFC Securities Limited. Director. Member of Premises Committee. Executive Director and Member of Customer Service Committee. Member of Fraud Monitoring Committee. Executive Director and Member of Risk Monitoring Committee. Debajeet Das VP. Harish Engineer Head of Wholesale Banking. Treasury 19 . Paresh Sukthankar Head of Credit. Market Risk & Investor Relations.KEY Deepak Parekh Executive Chairman Aditya Puri EXECUTIVES Managing Director. Member of Investors Grievance (Share) Committee.

HDFC BANK is the leader in the industries and today IT and HDFC BANK together combined they reached the sky. Today there are different channels are available for the banking transactions. That are create competition between the private sector banks and public sector bank. As we know that Information Technology plays the vital role in the each and every industry and gives the optimum return from the limited resources. 20 . CRM Innovative Technology Application HDFC BANK is the very consistent player in the new private sector banks. After the policy of liberalization and RBI initiatives to take the step for the private sector banks. Banks are service industry and today it gives the innovative Technology application to Banking industries. more and more changes are taking the part into it. New technology changed the mind of the customers and changed the queue concept from the history banking transaction. Centralized Processing Units Electronic Processing Straight Through Derived Economies of Scale Reduced Transaction Cost Improve cost efficiency.TECHNOLOGY USED IN HDFC BANK In the era of globalization each and every sector faced the stiff competition from their rivals and world also converted into the flat from the globe. This type of technology gives the freedom to retail customers. There are drastically changes seen in the use of Internet banking. New private sector banks to withstand the competition from public sector banks came up with innovative products and superior service. Private sector banks are today used the latest technology for the different transaction of day to day banking life. in a year 2001 (2%) and in the year 2008 (25%). Cross sell Provide new or superior products Data Warehousing .

HDFC BANK PRODUCT AND CUSTOMER SEGMENTS PERSONAL BANKING Loan Product • • • • • • • • • • • • • • • Auto Loan Loan Against Security Loan Against Property Personal loan Credit card 2-wheeler loan Commercial vehicles finance Home loans Retail business banking Tractor loan Working Capital Finance Construction Equipment Finance Health Care Finance Education Loan Gold Loan Deposit Product • • • • • Saving a/c Current a/c Fixed deposit Demat a/c Safe Deposit Lockers Investment & Insurance • • • • • • • Mutual Fund Bonds Knowledge Centre Insurance General and Health Insurance Equity and Derivatives Mudra Gold Bar Cards • • • Credit Card Debit Card Prepaid Card Payment Services • • • • NetSafe Merchant Prepaid Refill Billpay Access To Bank • NetBanking • OneView • InstaAlert Mobile Banking • ATM 21 .

-------------------------------Forex Services -------------------------------• Product & Services • Trade Services • Forex service Branch Locater • RBI Guidelines • • • • • • Visa Billpay InstaPay DirectPay VisaMoney Transfer e–Monies Electronic Funds Transfer Online Payment of Direct Tax • • • Phone Banking Email Statements Branch Network WHOLESALE BANKING Corporate • • • • Funded Services Non Funded Services Value Added Services Internet Banking • • • • • Small and Medium Enterprises Funded Services Non Funded Services Specialized Services Value added services Internet Banking Financial Institutions and Trusts BANKS • Clearing Sub-Membership • RTGS – sub membership • Fund Transfer • ATM Tie-ups • Corporate Salary a/c • Tax Collection Financial Institutions Mutual Funds Stock Brokers Insurance Companies Commodities Business Trusts 22 .

BUSINESS MIX Total Deposits Gross Advances Net Revenue Retail Wholesale • HDFC Bank is a consistent player in the private sector Bank and have a well balanced product and business mix in the Indian as well as overseas markets. Customer segments (retail & wholesale) account for 84% of Net revenues (FY 2008) Higher retail revenues partly offset by higher operating and credit costs. Equally well positioned to grow both segments. 23 . • • • .


Accounts & Deposits
• • • • • Rupee Saving a/c Rupee Current a/c Rupee Fixed Deposits Foreign Currency Deposits Accounts for Returning Indians

• North America • UK • Europe • South East Asia • Middle East • Africa • Others Quick remit India Link Cheque Lockbox Telegraphic/ Wire Transfer Funds Transfer Cheques/DDs/TCs

Investment & Insurances
• • • • Mutual Funds Insurance Private Banking Portfolio Investment Scheme • • • •

Home Loans Loans Against Securities Loans Against Deposits Gold Credit Card

Payment Services
• • • • • • Net Safe Bill Pay InstaPay Direct Pay Visa Money Online Donation • • • • • • •

Access To Bank
Net Banking One View InstaAlert ATM Phone Banking Email Statements Branch Network



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

HDFC BANK business strategy emphasizes the following:

Increase market share in India’s expanding banking and financial services industry by following a disciplined growth strategy focusing on quality and not on quantity and delivering high quality customer service. Leverage our technology platform and open scaleable systems to deliver more products to more customers and to control operating costs. Maintain current high standards for asset quality through disciplined credit risk management. Develop innovative products and services that attract the targeted customers and address inefficiencies in the Indian financial sector. Continue to develop products and services that reduce bank’s cost of funds. Focus on high earnings growth with low volatility.

• • • • •



FIVE “S”, PART OF KAIZEN WORK PLACE TRANSFORMATION Focus on effective work place organization Believe in “Small changes lead to large improvement”
Every successful organization has their own strategy to win the race in the competitive market. They use some technique and methodology for smooth running of business. HDFC BANK also acquired the Japanese technique for smooth running of work and effective work place organization.

Five ‘S’ Part of Kaizen is the technique which is used in the bank For easy and systematic work place and eliminating unnecessary things from the work place.

• • • • • It can be started immediately. Every one has to participate. Five “S” is an entirely people driven initiatives. Brings in concept of ownership. All wastages are made visible.


Frequently Required Wanted but not required Remove everything from workplace Less Frequently Required Junk (2) SYSTEMATIZE:- Junk Systematize is focus on efficient and effective Storage method. 27 . That means it identify.FIVE ‘S’ Means:S-1 S-2 S-3 S-4 S-5 SORT SYSTEMATIZE SPIC-N-SPAN STANDARDIZE SUSTAIN SEIRI SEITON SEIRO SEIKETSU SHITSUKE (1) SORT:It focuses on eliminating unnecessary items from the work place. organize and arrange retrieval. It is excellent way to free up valuable floor space. It largely focuses on good labeling and identification practices. It segregates items as per “require and wanted”.

n . (3) SPIC. (4) STANDERDIZE:It focuses on simplification and standardization. It assigns responsibility for doing various jobs and decides on Five S frequency.discipline and commitment towards workplace organization.SPAN:Spic-n-Span focuses on regular clearing and self inspection. (5) SUSTAIN:It focuses on defining a new status and standard of organized work place. 28 . It brings in self. It brings in the sense of ownership. It involves standard rules and policies. It establish checklist to facilitate autonomous maintenance of workplace. Sustain means regular training to maintain standards developed under S-4.Objective: .“A place for everything and everything in its place”.

Shelf (A) 6 – File Number (6) 29 .LABELLING ON FILE FILE NUMBER SUBJECT FROM DATE TO DATE OWNER BOX LABEL For Example 1/3/A/6 1 – Work Station (1) 3 – Drawer (3) A .

It is a part of Kaizen and also included in the system of the Five ‘S’.COLOUR CODING OF FILES DEPARTMENT Welcome Desk Personal Banker Teller Relationship Manager Branch Manager Demat Others In the HDFC BANK each department has their different color coding apply on the different file. Logic behind it that. the color coding is always differentiating the things from the similar one. 30 . Due to this everyone aware about their particular color file which is coding on it and they save their valuable time.

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

And balanced between these two things rupee earned and rupee spent are required for smooth running of business and financial soundness.RUPEE SPENT It is more important for every organization to know about from where and where to spent money. In this diagram it include both things from where Bank earned Rupee and where to spent.25 %. Bank also spent Dividend and 32 .75 % on Interest Expense.27 % on Operating Expense and 14. These are the major earning Sources of the bank.14 %. Bank also earned from the Forex and Derivatives and some other Interest Income.RUPEE EARNED . This type of watch can control and eliminate the unnecessary spending of business. bank earned commission exchange and brokerage of 15. ‘Interest from Investment’ 27. 30. Bank spent 39. HDFC BANK earned from the ‘Interest from Advances’ 51.58 % on Provision.12 %.

33 . RECENT DEVELOPMENT The Reserve Bank of India has approved the scheme of amalgamation of Centurion Bank of Punjab Ltd.Tax on dividend. all requisite statutory and regulatory approvals for the merger have been obtained. As we discuss above that balancing is must between these two for every organization especially in the era of globalization where there are stiff competition among various market players. with effect from May 23. Tax. 2008. 2008. With RBI’s approval. with HDFC Bank Ltd. All the branches of Centurion Bank of Punjab will function as branches of HDFC Bank with effect from May 23. Loss on Investment.

Merger with Centurion Bank of Punjab Limited On March 27. The shareholders of the Bank approved the issuance of one equity share of Rs.63. phone banking. the Bank reported a net profit of INR 15. Leading Indian and international Publications have recognized the bank for its performance and quality. 2007. the Bank had a network of 761 branches and 1.000 crores. 34 .000 crores. stock exchanges and other requisite statutory and regulatory authorities.450 crores to Rs. 2008.69 billion.up 39. As of March 31. As on March 31.each of HDFC Bank Limited for every 29 equity shares of Re.1. net banking and mobile banking. The Shareholders of the Bank have also approved an increase in the authorized capital from Rs.each held in Centurion Bank of Punjab Limited.77 billion (133177 crore).530. The balance sheet size of the combined entity would be over Rs.1.1590.10/. 1/.1. Promoted in 1995 by Housing Development Finance Corporation (HDFC). subject to final regulatory approvals in this regard.100.000 crores and net advances of around Rs. a strong deposit base of around Rs. ATMs.13 each to HDFC Limited and/or other promoter group companies on preferential basis.(Rs. the bank has successfully gained market share in its target customer franchises while maintaining healthy profitability and asset quality. HDFC Bank is one of India's premier banks providing a wide range of financial products and services to its over 11 million customers across hundreds of Indian cities using multiple distribution channels including a pan-India network of branches. 2008.89. Within a relatively short span of time. India's leading housing finance company. Total balance sheet size too grew by 46. Over the last 13 years. 2007. the shareholders of the Bank accorded their consent to a scheme of amalgamation of Centurion Bank of Punjab Limited with HDFC Bank Limited. the bank has emerged as a leading player in retail banking.The combined entity would have a nationwide network of 1167 branches. The shareholders Also accorded their consent to issue equity shares and/or warrants convertible into equity shares at the rate of Rs. 2008. The bank's competitive strength clearly lies in the use of technology and the ability to deliver world-class service with rapid response time.977 ATMs in 327 cities.5% over the corresponding year ended March 31.22.90 billion (Rs.769 crore) up 47. over the corresponding year ended March 31.331.3%. This is subject to receipt of Approvals from the Reserve Bank of India. For the year ended March 31. and treasury operations. wholesale banking. 2008 total deposits were INR 1007.0% to INR 1.550 crores.2crore). its three principal business segments.

In addition to being listed on the major Indian stock exchanges. Additionally the bank offers a full suite of NRI banking products to Overseas Indians. This merger has further strengthened the geographical reach of the Bank in major towns and cities across the country. The bank is also a strong player in foreign exchange services. On 29th August 2007. especially in the State of Kerala. The bank offers its customers an array of wealth management products such as mutual funds.500 employees. Centurion Bank of Punjab merged with Lord Krishna Bank (LKB). lending and advice on financial planning. life and general insurance and has established a leadership ‘position’. The bank serves individual consumers. personal loans. supported by employee base of over 7. mortgages and agricultural loans. post obtaining all requisite statutory and regulatory approvals. Centurion Bank of Punjab now operates on a strong nationwide franchise of 404 branches and 452 ATMs in 190 locations across the country. the Bank’s shares are also listed on the Luxembourg Stock Exchange. small and medium businesses and large corporations with a full range of financial products and services for investing. in addition to its existing dominance in the northern part of the country.Centurion Bank of Punjab is one of the leading new generations Private sector banks in India. 35 .

Best in Strength and Soundness Award Euro money Awards 'Best Bank in India' 2009 Economic Times Brand Equity & Nielsen Research annual survey Most Trusted Brand .ACHIEVEMENT IN 2009 UTI MF-CNBC TV18 Financial Advisor Awards 2009 Best Performing Bank Business Standard Best Banker Award Mr.Runner Up 2009 Asia Money Awards IBA Technology 2009 2009 'Best Domestic Bank in India' Banking 'Best IT Governance Award . Aditya Puri 2009 Second Best Private Bank in India . HDFC Bank Fe Best Bank Awards . Aditya Puri.Runner up' Awards 'Best Trade Finance Bank in India for 2009 Global Finance Award IDRBT Banking 'Best IT Governance and Value Delivery' Technology Excellence Award 2008 Asian Banker 'Asian Banker Best Retail Bank in India Award 2009 ' Excellence in Retail Financial Services 36 .Best Innovator of the year award for MD Mr. MD.

• Dedicated workforce aiming at making a long-term career in the field. Processes and systems. competitors. Customer training.SWOT ANALYSIS STRENGTH • Right strategy for the right products. • High degree of customer satisfaction. • Superior customer service vs. • • Good place to work Lower response time with efficient and effective service. Sectoral growth is constrained by low unemployment levels and competition for staff service staff needs accreditations. 37 . etc Management cover insufficient. • • Great Brand Image Products have required • • • • • WEAKNESSES Some gaps in range for certain sectors.

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

OBJECTIVES OF THE STUDY • To know the customer satisfaction level and their perception regarding HDFC Bank. • • • • 39 . To know the customer awareness regarding the Bank’s products. To know the level of interest of customer regarding the different schemes of bank. To know the problems of customer regarding bank. To know the preference of customer regarding the extra services.

the action the objectives can be obtained optimally in the context of a given environment. Data Collection: . newspapers. books. Typically. So both primary and secondary data was used for the project.  Construct and present a questionnaire or an appropriate form for data collection. A good research design lays the foundation for conducting the project. & websites etc.The objectives of the project are such that both primary and secondary data is required to achieve them.  Develop a plan of data analysis. or tasks:  Define the information needed.  Design the research. a research design involves the following components. RESEARCH DESIGN A framework or blueprint for conducting the research project.  Specify the measurement and scaling procedures. A good research design will ensure that the research project is conducted effectively and efficiently. Required to address these issues: designs the method for collecting information: manage and implements the data collection process analyses the results and communicates the finding and their implications. The mode of collecting primary data is questionnaire mode and sources of secondary data are various magazines.  Specify the sampling process and sampling size. Research problem is the one which requires a researcher to find out the best solution for the given problem that is to find out the course of action. It specifies the details of the procedures necessary for obtaining the information needed to structure and/or solve research problems. 40 .RESEARCH METHODOLOGY Research is a careful investigation or inquiry especially through search for new facts in branch of knowledge: market research specifies the information.

The primary data was collected by means of questionnaire and analysis was done on the basis of response received from the customers. 41 . Primary Data: The primary data was collected to measure the customer satisfaction and their perception regarding HDFC Bank. The questionnaire has been designed in such a manner that the consumer’s satisfaction level can be measured and consumer can enter his responses easily.1. 2. it was compiled. Sample size – 100 customers were selected. Secondary Data: The purpose of collecting secondary data was to achieve the objective of studying the recent trends and developments taking place in banking. classified and tabulated manually and with help of computer. Then the task of drawing inferences was accomplished with the help of percentage and graphic method. Sampling Unit – Gurdaspur Sampling Technique – Convenient sampling. Analysis and Interpretation After the data collection.

For how long you are part of HDFC Bank? No. 37%.e. 20% respondents from 6 months and remaining 14% respondents are part of HDFC Bank for last two years. of Respondents 20 37 14 29 100 Response Less than 6 Months Less than 1 Year Less than 2 Years More than 2 Years Total %age of Respondents 20% 37% 14% 29% 100% 20% 29% 14% 37% Less than 6 Months Less than 2 Years Less than 1 Year More than 2 Years Interpretation: From the above graph it is clear that majority of the respondents are part of HDFC Bank from last one year i. 29% of the respondents are part of HDFC Bank from last more than 2 years.1. 42 .

2. 25% because of its image. 45% are become part of HDFC Bank because of its services. of Respondents 25 25 45 5 %age of Respondents 25% 25% 45% 5% 45 40 35 30 25 20 15 10 5 0 image Extra services services all of above image Interpretation: From the above graph it is clear that majority of the respondents i. 43 .e. What are reasons that attract you to be a customer of the bank? Response Image Extra Services Services All of above No. 25% because of its extra services and rest because of all the three factors.

91% and 9% respondents are not aware of services offered by HDFC Bank. of Respondents 91 9 100 Response Yes No Total %age of Respondents 91% 9% 100% 9% 91% Yes No Interpretation: From the above graph it is clear that majority of the respondents are aware of products and services offered by HDFC Bank i. 44 .3. Are you aware of the different services offered by HDFC Bank? No.e.

100%.e.4. 5% demat a/c. 25% credit card. Do you know about these following services of the bank? Response Saving a/c Fixed deposits Current a/c Demat a/c Credit cards Mutual funds Loans 120 100 80 60 40 20 0 No. of Respondents 100 100 53 5 25 16 95 %age of Respondents 100% 100% 53% 5% 25% 16% 95% saving a/c fixed deposits current a/c demat a/c credit cards mutual funds loans Interpretation: From the above graph it is clear that majority of the respondents are aware of saving a/c & FD’s i. 45 . 16% mutual fund and 95% are aware of loans.53% are aware about current a/c.

10% mutual fund and 47% are aware of loans. 40% current a/c. Which of these services are you using? Response Saving a/c Fixed deposits Current a/c Demat a/c Credit cards Mutual funds Loans No. 46 . 65%.e. 3% demat a/c. 0% credit card. of Respondents 65 58 40 3 0 10 47 %age of Respondents 65% 58% 40% 3% 0% 10% 47% 70 60 50 40 30 20 10 0 saving a/c saving a/c fixed deposits current a/c demat a/c credit card mutual funds loans Interpretation: From the above graph it is clear that majority of the respondents are using saving a/c i.58% are using FD’s.5.

23% mutual fund. of Respondents 20 24 10 0 0 23 19 %age of Respondents 20% 24% 10% 0% 0% 23% 19% Interpretation: From the above graph it is clear that majority of the respondents are interesting in FD’s i. 24%. Which of these services are you further interested in? Response Saving a/c Fixed deposits Current a/c Demat a/c Credit cards Mutual funds Loans 30 25 20 15 10 5 0 saving a/c FD's current a/c demat a/c credit cards mutual funds loans No.20% are interesting in saving a/c.e. 40% current a/c. 47 . 19% in loans and no body is interesting in credit cards and demat a/c’s.6.

7.5% said about loans and no one rate demat a/c & credit card. the best product. of Respondents 33 40 12 0 0 10 5 %age of Respondents 33% 40% 12% 0% 0% 10% 5% 40 35 30 25 20 15 10 5 0 saving a/c FD's current a/c demat a/c credit cards mutual funds loans Interpretation: From the above graph it is clear that 33% of the respondent rate saving a/c. 48 . Which service of the bank would you rate the best? Response Saving a/c Fixed deposits Current a/c Demat a/c Credit cards Mutual funds Loans No. 12% said current a/c.10% said about mutual funds. 40% said FD’s are best.

of Respondents 69 41 %age of Respondents 69% 41% 69% yes no Interpretation: From the above graph it is clear that 69% of the respondents are known about the innovative services and the rest is unknown about it. 49 . Do you know about the Extra services being provided by the bank? Response Yes No No.8.

What is your perception about the service of the bank? 50 .9. 10. 5% don’t want any innovative services and 10% want all these services. 10% for net banking. 60% for ATM’s. 10% for bills payment. Which of the following Extra service of the bank would you like to go in for? Response Phone banking ATM Net banking Bill payment Non of these All of these No. of Respondents 5 60 10 10 5 10 %age of Respondents 5% 60% 10% 10% 5% 10% all of these non of these bill payment net banking ATM phone banking 0 20 40 60 80 Interpretation: From the above graph it is clear that 5% of the respondents would like to go for phone banking.

55% found it average and 10% found it poor. of Respondents 35 55 10 %age of Respondents 35% 55% 10% 60 50 40 30 20 10 0 Good Average Poor Interpretation: From the above graph it is clear that 35% of the respondents found the service of HDFC Bank good. Are you satisfied with the dealing of the bank officials? 51 .Response Good Average Poor No. 11.

45% are not fully satisfied and 25% are dissatisfied. 52 . of Respondents 30 25 45 %age of Respondents 30% 25% 45% 45 40 35 30 25 20 15 10 5 0 TO some extent Yes NO Interpretation: From the above graph it is clear that 30% of the respondents are satisfied with the dealing of the bank officials.Response Yes No To some extent No.

How likely are you to recommend Bank services to a friend or colleague? 53 . of Respondents 78 12 10 0 %age of Respondents 78% 12% 10% 0% 80 70 60 50 40 30 20 10 0 Timeliness Customer relationship Infrastrusture Other Interpretation: From the above graph it is clear that 78% of the respondent facing the problem of timeliness.12. 12% customer relationship and 10% of infrastructure. Any problem you are facing regarding the bank? Response Timeliness Customer relationship Infrastructure Others No. 13.

35% said somewhat likely and 10% said very likely. 17% said neither likely nor unlikely.Response Very unlikely Somewhat unlikely Neither likely nor unlikely Somewhat likely Very likely No. of Respondents 8 30 17 35 10 %age of Respondents 8% 30% 17% 35% 10% very unlikely somewhat unlikely neither likely nor unlikely somewhat likely very likely Interpretation: From the above graph it is clear that 8% of the respondents are unlikely to recommend the products of HDFC Bank to their friends and colleagues. 14. 30% said somewhat unlikely. How will you rate the HDFC Bank in maintaining good customer relationship? 54 .

of Respondents 20 57 33 %age of Respondents 20% 57% 33% bad Average good Interpretation: From the above graph it is clear that 20% of the respondents said HDFC Bank is good in maintaining customer relationship. of Respondents %age of Respondents 55 .Response Good Average Poor No. 57% said it is average and rest 33% said it is poor in the maintenance. 15. What is your overall satisfaction rating with our bank? Response No.

9% are somewhat dissatisfied and 2% are very much dissatisfied with the bank. 20% are somewhat satisfied. 56 . FINDINGS OF THE STUDY Majority of the customers are satisfied with HDFC Bank. 21% are neither satisfied nor dissatisfied.Very dissatisfied Somewhat dissatisfied Neither satisfied nor dissatisfied Very satisfied Somewhat satisfied 2 9 21 48 20 2% 9% 21% 48% 20% Rating of the company very dissatisfied somewhat dissatisfied neither satisfied very satisfied 150 somewhat satisfied 21 48 20 9 2 0 ► 50 100 Interpretation: From the above graph it is clear that 48% of the respondents are very satisfied with the bank.

► The most preferable extra service is ATM’s and the less preferable services are bills payment.Majority of the customers are aware of services and extra services offered by HDFC Bank. Majority of the respondent said that they are facing the problem of timeliness and rest are facing problem of customer relationship and infrastructure. ► The perception of the majority of the customer regarding the bank is good because majority of the customers are satisfied with the bank and they also recommend the products of the bank. ► ► The majority of customers are more interested in FD’s. But not all the services. Majority of the respondents are found the bank is average in maintaining the good customer relationship. current a/c and loans. ► ► ► Main factor that attract customers towards bank is the services of the bank. net banking and phone banking. The majority of the customers are satisfied with the dealing of the officials upto some extent. Services that are most used by the customer are saving a/c. ► ► ► The majority of the customers found services of the bank are average. SUGGESTIONS AND RECOMMENDATIONS 57 . mutual funds and saving a/cs. FD’s.

The bank should enhance their services according to the needs of the customer.► ► ► ► ► More stress should give on the advertisement and promotional activities. LIMITATIONS OF THE STUDY 58 . The Bank should make some efforts to improving good relationship with customer. The bank makes its procedures less time consuming. The bank should make effort to aware the customers about their all the extra services.

 The information given by the respondent might be biased some of them might not be interested to given correct information. These are:  The research was carried out in a short period. Sincere efforts have been made to eliminate discrepancies as far as possible but few would have reminded due to limitations of the study. 59 .  Some of the respondents of the survey were unwilling to share information.It is said.  Limited sample size. I am sure that there would be few shortcoming in this project also. “Nothing is perfect” and if the quite is true.

HDFC Bank should lay more stress on advertisements. Number of formalities should reduce.. The customers are aware about the bank’s services but the Bank should try to create more awareness among people.142 branches And 3. both in print as well as in other media for this purpose. as customer feels irritated with lots of formalities and it will save the time of customer and Bank also. The majority of customers are satisfied.CONCLUSION At the end I would like to conclude that The Indian banking market is growing at an astonishing rate.295 automated teller machines in 528 cities in India. HDFC bank had a network of 1. 60 . But the bank should target on the rest of the customers who are not satisfied. with Assets expected to reach US$1 trillion by 2010.

hdfcbank/products/finance • www.bnknetindia/com/banking/finance http://en.BIBLIOGRAPHY • • • • • 61 .org/wiki/bankingfinancialcompany www.

QUESTIONNAIRE Name ______________________ Gender _____________________ Annually Income _____________ Age _______________________ Occupation _________________ e-mail _____________________ Address _____________________________________________________ 1. For how long you are part of HDFC Bank? Less than 6 Months Less than 2 Years ( ) ( ) Less than 1 Year More than 2 Years ( ) ( ) 2. ( ) ( ) ( ) ( ) Are you aware of the different services offered by HDFC Bank? Yes ( ) No ( ) 62 . What are reasons that attract you to be a customer of the bank? a) its image b) its service c) products d) all of the above 3.

Do you know about these services of the banking industry? a) Savings a/c b) Fixed deposits c) Current a/c’s d) Demat a/c’s e) Credit card f) Insurances g) Mutual funds h) Loans Yes/no yes/no yes/no yes/no yes/no yes/no yes/no yes/no 5. Which of these products are you using? a) Savings a/c b) Fixed deposits c) Current a/c d) De-mat a/c e) Credit card a/c f) Insurance g) Mutual finds h) Loans yes/no yes/no yes/no yes/no yes/no yes/no yes/no yes/no 6. Which of these products are you more interested in? a) Savings a/c B) Fixed deposits c) Current a/c yes/no yes/no yes/no 63 .4.

Which services of the banks would you rate the best? a) Saving a/c b) Fixed deposits c) Current a/c d) De-mat a/c e) Credit card a/c f) Insurance g) Mutual finds h) Loans 8. Do you know about the extra services being provided by the bank? a) Yes b) No 64 .d) De-mat a/c e) Credit card a/c f) Insurance g) Mutual finds h) Loans yes/no yes/no yes/no yes/no yes/no 7.

Which of the following extra service of the banks would you Like to go in for? a) Phone banking b) ATM c) Net banking d) Mobile banking e) Bill payment f) None of these g) All of these ( ) ( ) ( ) ( ) ( ) ( ) ( ) 10. To some extend ( ) ( ) ( ) 12. What is your perception regarding the service of the bank? a) Good b) Average c) Poor ( ) ( ) ( ) 11. No c. Yes b.9. Are you satisfied with the dealing of the bank officials? a. Any problem you are facings regarding the bank? Timeliness ( ) Customer relationship ( ) Infrastructure ( ) Others ( ) 65 .

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