hdfc report manoj

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SUMMER TRAINING REPORTON

CUSTOMER SATISFACTION REGARDING HDFC BANK

In the partial fulfillment of the Degree requirement towards the

MASTER OF BUSINESS ADMINISTRATION (MBA)SESSION (2008-2010)

Submitted By: ManojMBA(G)Roll No:- 125


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DECLARATIONI hereby declare that project entitled CUSTOMER SATISFACTIONREGARDING HDFC BANK submitted to PUNJAB TECHNICALUNIVERSITY, JALANDHAR in partial fulfillment of the requirement for

Master Degree of business administration (SEMIIIrd) is my original work.

GUIDERS CERTIFICATEThis is to certify that the survey entitled, CUSTOMER SATISFACTIONREGARDING HDFC BANK submitted in partial fulfillment of the requirement forthe award of degree of Masters of Business Administration (MBA) from PunjabTechnical University, Jalandhar is a bonafide summer training project work carriedout by VARUN BAWA, under my supervision and guidance and to the best of myknowledge and information, no part of summer training project work has beensubmitted for any other degree or diploma.

AcknowledgementThis project report bears the imprint of those who had rendered their wholeheartedsupport and encouragement without whose help this effort of mine would be in vain. Iexpress my deep sense of gratitude and sincere thanks to my project guide Sr.Lect.Arti Mehta for his directions, suggestion and information provided which were ofutmost importance for the successful completion of the project. I am also thankful toMr. Rajiv Bhatia for his proper guidance. I thankful to the employees of HDFC Bankfor assisting me in the timely completion of project. At last, I also thank to my family

and my friends those helped me in my training period and in the completion ofproject.

PREFACEWithout practical training, management education is meaningless so long with thetheory; practical training is provided to management students to expose them to theactual working environment of any organization. Such training provides a frameworkof knowledge relating to the concepts and practices of the assigned topics in theorganization. The summer training is an integral part of the course curriculum ofMaster of Business Administration (M.B.A. 3rd). In this the student is in the position

to analyze the integral working of an organization with mature eyes and understandthe dynamics in a much better manner.This particular project has been conducted at HDFC Bank. In the first phase of theresearch project, there is a introduction of Banking, company profile and products ofHDFC Bank are given. After that a market research is performed with a sample sizeof 100 people. The research study was limited to Gurdaspur. Here, in my survey, Ihave contacted the respondents through personal interviews with the help ofquestionnaires.The main objective of the research is to know the customersatisfaction level and their perception regarding HDFC Bank and to know thecustomer awareness regarding the HDFC Banks products.HDFC Bank should lay more stress on advertisements, both in print as well as in

other media. Opening up the sector will certainly mean new products, betterpackaging and improved customer service. Both new and existing players will have


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to explore new distribution and marketing channels. Potential buyers for most ofBanks lie in the middle class. Competitors must segment the market carefully toarrive at appropriate products and pricing. Recognizing the potential, in the pastthree years, the nationalized Banks have already begun to target niches likepensions, women, children and rural peoples.

EXECUTIVE SUMMARYThe report contains the organizational study done at HDFC Bank. The report title isCUSTOMER SATISFACTION REGARDIND HDFC BANK.The report gives an overview of the banking Sector and company profile. Andawareness of customers about different types of products and services offered byHDFC Bank. This study was conducted to find out the customer satisfactionregarding HDFC bank. The methodology adopted for the study was through astructured questionnaire, which is targeted to the different persons in Gurdaspur. Forthis purpose sample size of 100 was taken. The data collected from the differentpersons was analyzed thoroughly and presented in the form of charts and tables.HDFC must advertise regularly and create brand value for its products and services.Most of its competitors like ICICI, Axis, kotak Mahindra and nationalized banks usetelevision advertisements to promote their products. The Indian consumer has afalse perception about private banks they feel that it would not safe.Safety and returns are the two main reasons people invest in banks. On the wholeHDFC bank is a good place to work at. Every new recruit is provided with extensivetraining on the products of HDFC. This training enables an advisor/sales manager tomarket the policies better. The company should try to create awareness about itselfin India. With an improvement in the sales techniques used, a fair bit of advertisingand modifications to the existing product portfolio, HDFC would be all set to capture

the banking market in India as it has around the globe.


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CONTENT

SrNo:-

Subject Pg No:-

1 Introduction to the study2 Introduction to the Banking3 History of Banking in India4 Banking structure in India5 Indian Banking Industry6 Upcoming Foreign Banks in

India7 HDFC BANK8 Company Profile9 Key Executives

10 Technology used in HDFC Bank11 Products and customersegments

12 Business strategy13 Inside HDFC Bank14 Human resource15 Rupees earned-Rupees spend16 Recent development17 Achievements18 SWOT Analysis19 Objectives

20 Research methodology21 Data analysis & interpretation22 Findings23 Suggestions24 Limitations25 Conclusion26 Bibliography


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INTRODUCATION TO BANKING

Banking means accepting the deposits from the customers for lending to the needyand extending the other services as to issue of dd etc.nowadays after introduction ofprivate 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. butnationalised banks are still service oriented in extending loans for Education loan,and rural development activities.

A Bank is an organization which lends money to the borrowers for a purposeful task,and provides a facility to deposit and withdraw money when needed and charge forit.

HISTORY OF BANKING IN INDIA

Phase IThe General Bank of India was set up in the year 1786. Next came Bank ofHindustan and Bengal Bank. The East India Company established Bank of Bengal(1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent unitsand called it Presidency Banks. These three banks were amalgamated in 1920 andImperial Bank of India was established which started as private shareholders banks,mostly Europeans shareholders.

In 1865 Allahabad Bank was established and first time exclusively by Indians,Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank,

Indian Bank, and Bank of Mysore were set up. Reserve Bank of India came in 1935.During the first phase the growth was very slow and banks also experienced periodicfailures between 1913 and 1948. There were approximately 1100 banks, mostlysmall. To streamline the functioning and activities of commercial banks, theGovernment of India came up with The Banking Companies Act, 1949 which waslater changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No.23 of 1965). Reserve Bank of India was vested with extensive powers for thesupervision of banking in India as the Banking Authority.

During those days public has lesser confidence in the banks. As an aftermathdeposit mobilisation was slow. Abreast of it the savings bank facility provided by thePostal department was comparatively safer. Moreover, funds were largely given totraders.

Phase IIGovernment took major steps in this Indian Banking Sector Reform afterindependence. In 1955, it nationalised Imperial Bank of India with extensive bankingfacilities on a large scale especially in rural and semi-urban areas. It formed StateBank of India to act as the principal agent of RBI and to handle banking transactionsof the Union and State Governments all over the country.

Seven banks forming subsidiary of State Bank of India was nationalised in 1960 on19th July, 1969, major process of nationalisation was carried out. It was the effort of


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the then Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks inthe country were nationalised.

Second phase of nationalisation Indian Banking Sector Reform was carried out in1980 with seven more banks. This step brought 80% of the banking segment in India

under Government ownership.The following are the steps taken by the Government of India to Regulate BankingInstitutions in the Country:

1949: Enactment of Banking Regulation Act.1955: Nationalisation of State Bank of India.1959: Nationalisation of SBI subsidiaries.1961: Insurance cover extended to deposits.1969: Nationalisation of 14 major banks.1971: Creation of credit guarantee corporation.1975: Creation of regional rural banks.

1980: Nationalisation of seven banks with deposits over 200 crore.

After the nationalisation of banks, the branches of the public sector bank India roseto approximately 800% in deposits and advances took a huge jump by 11,000%.Banking in the sunshine of Government ownership gave the public implicit faith andimmense confidence about the sustainability of these institutions.

Phase IIIThis phase has introduced many more products and facilities in the banking sector inits reforms measure. In 1991, under the chairmanship of M Narasimham, acommittee was set up by his name which worked for the liberalisation of bankingpractices. The country is flooded with foreign banks and their ATM stations. Effortsare being put to give a satisfactory service to customers. Phone banking and netbanking is introduced. The entire system became more convenient and swift. Time isgiven more importance than money.The financial system of India has shown a great deal of resilience. It is shelteredfrom any crisis triggered by any external macroeconomics shock as other East AsianCountries suffered. This is all due to a flexible exchange rate regime, the foreignreserves are high, the capital account is not yet fully convertible, and banks and theircustomers have limited foreign exchange exposure.


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BANKING STRUCTURE IN INDIAScheduled Banks in India(A) Scheduled Commercial BanksPublic sector

BanksPrivate sectorBanksForeign Banksin IndiaRegional RuralBank(28) (27) (29) (102)NationalizedBankOther PublicSector Banks(IDBI)SBI and itsAssociates

(B) Scheduled Cooperative BanksScheduled Urban CooperativeBanks (55)Scheduled State Cooperative

Banks (31)Here we more concerned about private sector banks and competition among them.Today,there are 27 private sector banks in the banking Sector: 19 old private sector banksand 8new private sector banks. These new banks have brought in state-of-the-arttechnology andaggressively marketed their products. The Public sector banks are facing a stiffcompetition from the new private sector banks. The banks which have been setup inthe1990s under the guidelines Of the Narasimham Committee are referred to as NEW

PRIVATE SECTOR BANKS.INDIAN BANKING INDUSTRIES13The Indian banking market is growing at an astonishing rate, with Assets expected toreachUS$1 trillion by 2010. An expanding Economy, middle class, and technologicalinnovations are all Contributing to this growth.The countrys middle class accounts for over 320 million people. In correlation withthegrowth of the economy, rising income levels, increased standard of living, andaffordabilityof banking products are promising factors for continued expansion.The Indian banking Industry is in the middle of an IT revolution, focusing on the


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expansion of retail and rural banking. Players are becoming increasingly customer -centric in their approach, which has resulted in innovative methods of offering newbanking products and services. Banks are now realizing the importance of being abigplayer 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. Indianbanking industry assets are expected to reach US$1 trillion by 2010 and are poisedtoreceive a greater infusion of foreign capital, says Prathima Rajan, analyst in Celent'sbanking group and author of the report.The banking industry should focus on havingasmall number of large players that can compete globally rather than having a largenumberof fragmented players."14

UPCOMING FOREIGN BANKS IN INDIABy 2009 to 2010 few more names is going to be added in the list of foreign banks inIndia.This is as an aftermath of the sudden interest shown by Reserve Bank of Indiapavingroadmap for foreign banks in India greater freedom in India. Among them is theworld'sbest private bank by Euro Money magazine, Switzerland's UBS.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 China15

WE UNDERSTAND YOUR WORLDThe Housing Development Finance Corporation Limited (HDFC) was amongst the

firstto receive an in principle' approval from the Reserve Bank of India (RBI) to set up abank in the private sector, as part of the RBI's liberalization of the Indian BankingIndustryin 1994. The bank was incorporated in August 1994 in the name of 'HDFC BankLimited',with its registered office in Mumbai, India. HDFC Bank commenced operations as aScheduled Commercial Bank in January 1995.HDFC is Indias premier housing finance company and enjoys an impeccable trackrecordin India as well as in international markets. Since its inception in 1977, the

Corporation has


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maintained a Consistent and healthy growth in its operations to remain the marketleader inmortgages. Its outstanding loan portfolio covers well over a million dwelling units.HDFChas developed significant expertise in retail mortgage loans to different market

segmentsand also has a large corporate client base for its housing related credit facilities. Withitsexperience in the financial markets, a strong market reputation, large shareholderbase andunique consumer franchise, HDFC was ideally positioned to promote a bank in theIndianenvironment.HDFC Bank began operations in 1995 with a simple mission to be a World ClassIndianBank. It realized that only a single minded focus on product quality and service

excellence would help us get there. Today, the Bank is proud to say that it is well onitsway towards that goal.16

COMPANY PROFILESTRONG NATIONAL NETWORKHDFC BANKHDFC bank ltd provides various financial products and services. It operates in threesegments: Retail Banking, Wholesale Banking, and Treasury. The Retail bankingsegment

provides various deposit products, including savings Accounts, current accounts,fixeddeposits, and demat accounts. It also offers Auto, personal, commercial vehicle,home,gold, and educational loans; loans Against securities and property and health carefinanceWorking capital finance, construction equipment finance, and warehouse Receiptloans, aswell as credit cards, debit cards, depository, investment Advisory, bill payments, andtransactional services. In addition, this segment Sells third party financial products,such asmutual funds and insurance, as Well as distributes life and general insuranceproductsthrough its tie-ups with insurance companies and mutual fund houses. Thewholesalebanking Segment provides loans, non-fund facilities, and transaction services tolargeCorporate, emerging corporate, small and medium enterprise, supply chain, Publicsector17undertaking, central and state government departments, and Institutional customers.

It


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offers deposit and transaction banking products, Supply chain financing, workingcapitaland term finance, agricultural loans, and funded non-funded treasury, and foreignexchangeproducts. This segments services include trade services, cash management, and

moneyMarket, custodial, tax collection, and electronic banking. In addition, it providescorrespondent bank services to co-operative banks, private banks, foreign banks,andregional rural banks. The Treasury Services segment operates primarily in areas,such asforeign exchange, money market, interest rate trading, and Equities. As of March 31,2009HDFC bank had a network of 1,142 branches And 3,295 automated teller machinesin 528cities in India. The company was founded in 1994 and is based in Mumbai, India.

March 2006 March 2007 March 2008 March 2009Cities 228 316 327 528Branches 535 684 761 1142ATMs 1323 1605 1977 3295As ofMarch 31, 2008, the Banks distribution network was at 761 Branches and1977ATMs in 327 cities as against 684 branches and 1,605 ATMs in 316 cities as ofMarch 31,2007. Against the regulatory approvals for new branches in hand, the Bank expectsto

further expand the branch network by around 150 branches by June 30, 2008.During theyear, the Bank stepped up retail customer acquisition with deposit accountsincreasing from6.2 million to 8.7 million and total cards issued (debit and credit cards) increasingfrom 7million to 9.2 million. Whilst credit growth in the banking system slowed down toabout22% for the year ended 2008-09, the Banks net advances grew by 35.1% with retailadvances growing by 38.6% and wholesale advances growing by 30%, implying ahighermarket share in both segments.The transactional banking business also registered healthy growth with cashmanagementvolumes increased by around 80% and trade services volumes by around 40% overtheprevious year. Portfolio quality as of March 31, 2008 remained healthy with grossnonperforming assets at 1.3% and net non-performing assets at 0.4% of totalcustomerassets.18

KEY EXECUTIVESDeepak Parekh


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Executive ChairmanAditya PuriManaging Director, Director, Member of Investors Grievance (Share) Committee,Memberof Fraud Monitoring Committee, Member of Premises Committee, Member of Credit

Approval Committee and Member of Risk Monitoring CommitteeAdil PatrawalaChief Operating Officer of HDFC Securities Limited and Whole time Director ofHDFCSecurities Limited

Sunil ShahManaging Director of HDFC Securities Limited and Director of HDFC SecuritiesLimited.Harish EngineerHead of Wholesale Banking, Executive Director and Member of Customer ServiceCommittee.Paresh SukthankarHead of Credit, Market Risk & Investor Relations, Executive Director and Member ofRiskMonitoring Committee.Debajeet DasVP, Treasury19

TECHNOLOGY USED IN HDFC BANKIn the era of globalization each and every sector faced the stiff competition from theirrivals and world also converted into the flat from the globe. After the policy of

liberalization and RBI initiatives to take the step for the private sector banks, moreandmore changes are taking the part into it. That are create competition between theprivatesector banks and public sector bank. Private sector banks are today used the latesttechnology for the different transaction of day to day banking life. As we know thatInformation Technology plays the vital role in the each and every industry and givestheoptimum return from the limited resources.Banks are service industry and today it gives the innovative Technology applicationto

Banking industries. HDFC BANK is the leader in the industries and today IT andHDFCBANK together combined they reached the sky. New technology changed the mindof thecustomers and changed the queue concept from the history banking transaction.Todaythere are different channels are available for the banking transactions. There aredrasticallychanges seen in the use of Internet banking, in a year 2001 (2%) and in the year2008(25%). This type of technology gives the freedom to retail customers.

Centralized Processing Units Derived Economies of Scale


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Electronic Straight ThroughProcessingReduced Transaction CostData Warehousing , CRM Improve cost efficiency, Cross

sellInnovative Technology Application Provide new or superiorproductsHDFC BANK is the very consistent player in the new private sector banks. Newprivatesector banks to withstand the competition from public sector banks came up withinnovative products and superior service.20

HDFC BANK PRODUCT AND CUSTOMER SEGMENTSPERSONAL BANKING

Loan Product Deposit Product Investment & InsuranceAuto LoanLoan AgainstSecurityLoan AgainstPropertyPersonal loanCredit card2-wheeler loanCommercial

vehicles financeHome loansRetail businessbankingTractor loanWorking CapitalFinanceConstructionEquipment FinanceHealth CareFinanceEducation LoanGold LoanSaving a/cCurrent a/cFixed depositDemat a/cSafe DepositLockersMutual FundBondsKnowledge CentreInsurance


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General and HealthInsuranceEquity and DerivativesMudra Gold Bar

Cards Payment Services Access To BankCredit CardDebit CardPrepaid CardNetSafeMerchantPrepaid RefillBillpayNetBankingOneViewInstaAlert

Mobile BankingATM21--------------------------------Forex Services--------------------------------Product & ServicesTrade ServicesForex serviceBranch Locater

RBI GuidelinesVisa BillpayInstaPayDirectPayVisaMoneyTransfereMoniesElectronic FundsTransferOnline Payment ofDirect TaxPhone BankingEmail StatementsBranch Network

WHOLESALE BANKINGCorporate Small and MediumEnterprisesFinancial Institutionsand TrustsFunded Services

Non FundedServices


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Value AddedServicesInternet BankingFunded ServicesNon Funded ServicesSpecialized ServicesValue added servicesInternet BankingBANKS

Clearing Sub-MembershipRTGS sub membershipFund TransferATM Tie-upsCorporate Salary a/cTax Collection

Financial InstitutionsMutual FundsStock BrokersInsurance CompaniesCommodities BusinessTrusts22

BUSINESS MIXTotal Deposits Gross Advances Net RevenueRetail Wholesale

HDFC Bank is a consistent player in the private sector Bank and have awell balanced product and business mix in the Indian as well as overseasmarkets.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

NRI SERVICES

Accounts & Deposits RemittancesRupee Saving a/cRupee Current a/cRupee Fixed DepositsForeign Currency DepositsAccounts for Returning IndiansNorth AmericaUKEuropeSouth East AsiaMiddle EastAfrica


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OthersQuick remitIndia LinkCheque LockboxTelegraphic/ Wire Transfer

Funds Transfer Cheques/DDs/TCsInvestment & Insurances LoansMutual FundsInsurancePrivate BankingPortfolio Investment SchemeHome LoansLoans Against SecuritiesLoans Against DepositsGold Credit Card

Payment Services Access To BankNet SafeBill PayInstaPayDirect PayVisa MoneyOnline DonationNet BankingOne ViewInstaAlert

ATMPhone BankingEmail StatementsBranch Network24

BUSINESS STRATEGYHDFC BANK mission is to be "a World Class Indian Bank", benchmarkingthemselvesagainst international standards and best Practices in terms of product offerings,technology, service levels, risk management and audit & compliance. The objective

is tobuild sound customer franchises across distinct businesses so as to be a preferredproviderof banking services for target retail and wholesale customer segments, and toachieve ahealthy growth in profitability, consistent with the Bank's risk appetite. Bank iscommittedto do this while ensuring the highest levels of ethical standards, professionalintegrity,corporate governance and regulatory compliance. Continue to develop new productand

technology is the main business strategy of the bank. Maintain good relation with thecustomers is the main and prime objective of the bank.


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HDFC BANK business strategy emphasizes the following:Increase market share in Indias expanding banking and financial servicesindustry by following a disciplined growth strategy focusing on quality and noton 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 riskmanagement.Develop innovative products and services that attract the targeted customersand address inefficiencies in the Indian financial sector.Continue to develop products and services that reduce banks cost of funds.Focus on high earnings growth with low volatility.25

INSIDE HDFC BANKFIVE S, PART OF KAIZEN

WORK PLACE TRANSFORMATIONFocus on effective work place organizationBelieve inSmall changes lead to large improvementEvery successful organization has their own strategy to win the race in thecompetitivemarket. They use some technique and methodology for smooth running of business.HDFC BANK also acquired the Japanese technique for smooth running of work andeffective work place organization.Five S Part of Kaizen is the technique which is used in the bank For easy and

systematicwork place and eliminating unnecessary things from the work place.

BENEFIT OF FIVE SIt 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.26

FIVE S Means:-

S-1 SORT SEIRIS-2 SYSTEMATIZE SEITONS-3 SPIC-N-SPAN SEIROS-4 STANDARDIZE SEIKETSUS-5 SUSTAIN SHITSUKE(1) SORT:-It focuses on eliminating unnecessary items from the work place.It is excellent way to free up valuable floor space.It segregates items as per require and wanted.

(2) SYSTEMATIZE:-Systematize is focus on efficient and effective Storage method.That means it identify, organize and arrange retrieval.


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It largely focuses on good labeling and identification practices.27

FrequentlyRequired

LessFrequentlyRemove Requiredeverything fromworkplace

JunkWanted but

not required JunkObjective: - A place for everything and everything in its place.

(3) SPIC- n - SPAN:-Spic-n-Span focuses on regular clearing and self inspection. It brings in the sense ofownership.

(4) STANDERDIZE:-It focuses on simplification and standardization. It involves standard rules andpolicies. Itestablish checklist to facilitate autonomous maintenance of workplace. It assignsresponsibility for doing various jobs and decides on Five S frequency.

(5) SUSTAIN:-It focuses on defining a new status and standard of organized work place. Sustainmeansregular training to maintain standards developed under S-4. It brings in self-discipline andcommitment towards workplace organization.28

LABELLING ON FILEFILE NUMBERSUBJECT

FROM DATETO DATEOWNER

BOX LABELFor Example1 / 3 / A / 61 Work Station (1)3 Drawer (3)A - Shelf (A)6 File Number (6)

29


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COLOUR CODING OF FILESDEPARTMENTWelcome DeskPersonal Banker

TellerRelationship ManagerBranch ManagerDematOthersIn the HDFC BANK each department has their different color coding apply on thedifferentfile. Due to this everyone aware about their particular color file which is coding on itandthey save their valuable time. It is a part of Kaizen and also included in the system of

theFive S. Logic behind it that, the color coding is always differentiating the things fromthesimilar one.30

HUMAN RESOURCESThe Banks staffing needs continued to increase during the year particularly in theretailbanking businesses in line with the business growth. Total number of employeesincreasedfrom 14878 as of March31, 2006 to 21477 as of March 31, 2007. The Bankcontinues tofocus on training its employees on a continuing basis, both on the job and throughtrainingprograms conducted by internal and external faculty.The Bank has consistently believed that broader employee ownership of its shareshas apositive impact on its performance and employee motivation. The Banks employeestockoption scheme so far covers around 9000 employees.31

RUPEE EARNED - RUPEE SPENTIt is more important for every organization to know about from where and where tospentmoney. And balanced between these two things rupee earned and rupee spent arerequiredfor smooth running of business and financial soundness. This type of watch cancontroland eliminate the unnecessary spending of business. In this diagram it include boththingsfrom where Bank earned Rupee and where to spent.HDFC BANK earned from the Interest from Advances 51.14 %, Interest from

Investment 27.12 %, bank earned commission exchange and brokerage of 15.25 %.These


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are the major earning Sources of the bank. Bank also earned from the Forex andDerivatives and some other Interest Income. Bank spent 39.75 % on InterestExpense,30.27 % on Operating Expense and 14.58 % on Provision. Bank also spent Dividendand

32Tax on dividend, Loss on Investment, Tax. As we discuss above that balancing ismustbetween these two for every organization especially in the era of globalization wherethereare stiff competition among various market players.

RECENT DEVELOPMENTThe Reserve Bank of India has approved the scheme of amalgamation ofCenturionBank of Punjab Ltd. with HDFC Bank Ltd. with effect from May 23, 2008.All the branches of Centurion Bank of Punjab will function as branches of HDFCBankwith effect from May 23, 2008. With RBIs approval, all requisite statutory andregulatoryapprovals for the merger have been obtained.33The combined entity would have a nationwide network of 1167 branches; a strongdepositbase of around Rs.1,22,000 crores and net advances of around Rs.89,000 crores.Thebalance sheet size of the combined entity would be over Rs.1,63,000 crores.

Merger with Centurion Bank of Punjab LimitedOn March 27, 2008, the shareholders of the Bank accorded their consent to ascheme ofamalgamation of Centurion Bank of Punjab Limited with HDFC Bank Limited. Theshareholders of the Bank approved the issuance of one equity share of Rs.10/- eachofHDFC Bank Limited for every 29 equity shares of Re. 1/- each held in CenturionBank of Punjab Limited. This is subject to receipt of Approvals from the ReserveBank ofIndia, stock exchanges and other requisite statutory and regulatory authorities. Theshareholders Also accorded their consent to issue equity shares and/or warrantsconvertibleinto equity shares at the rate of Rs.1,530.13 each to HDFC Limited and/or otherpromoter group companies on preferential basis, subject to final regulatory approvalsinthis regard. The Shareholders of the Bank have also approved an increase in theauthorized capital from Rs.450 crores to Rs.550 crores.Promoted in 1995 by Housing Development Finance Corporation (HDFC), India'sleading housing finance company, HDFC Bank is one of India's premier banksproviding awide range of financial products and services to its over 11 million customers acrosshundreds of Indian cities using multiple distribution channels including a pan-India

network of branches, ATMs, phone banking, net banking and mobile banking. Withina


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relatively short span of time, the bank has emerged as a leading player in retailbanking,wholesale banking, and treasury operations, its three principal business segments.Thebank's competitive strength clearly lies in the use of technology and the ability to

deliverworld-class service with rapid response time. Over the last 13 years, the bank hassuccessfully gained market share in its target customer franchises while maintaininghealthy profitability and asset quality.As on March 31, 2008, the Bank had a network of 761 branches and 1,977 ATMs in327cities. For the year ended March 31, 2008, the Bank reported a net profit of INR15.90billion (Rs.1590.2crore),up 39.3%, over the corresponding year ended March 31,2007. As of March 31, 2008 total deposits were INR 1007.69 billion,(Rs.100,769crore) up 47.5% over the corresponding year ended March 31, 2007. Total balance

sheetsize too grew by 46.0% to INR 1,331.77 billion (133177 crore). Leading Indian andinternational Publications have recognized the bank for its performance and quality.34Centurion Bank of Punjab is one of the leading new generations Private sector banksinIndia. The bank serves individual consumers, small and medium businesses andlargecorporations with a full range of financial products and services for investing, lendingandadvice on financial planning. The bank offers its customers an array of wealthmanagement products such as mutual funds, life and general insurance and hasestablisheda leadership position. The bank is also a strong player in foreign exchange services,personal loans, mortgages and agricultural loans.Additionally the bank offers a full suite of NRI banking products to Overseas Indians.On29th August 2007, Centurion Bank of Punjab merged with Lord Krishna Bank (LKB),postobtaining all requisite statutory and regulatory approvals. This merger has furtherstrengthened the geographical reach of the Bank in major towns and

cities across the country, especially in the State of Kerala, in addition to its existingdominance in the northern part of the country.Centurion Bank of Punjab now operates on a strong nationwide franchise of 404branchesand 452 ATMs in 190 locations across the country, supported by employee base ofover7,500 employees. In addition to being listed on the major Indian stock exchanges,theBanks shares are also listed on the Luxembourg Stock Exchange.35

ACHIEVEMENT IN 2009UTI MF-CNBC TV18Financial Advisor


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Awards 2009Best Performing BankBusiness Standard BestBanker AwardMr. Aditya Puri, MD, HDFC Bank

Fe Best Bank Awards2009- Best Innovator of the year award for MD Mr. Aditya Puri- Second Best Private Bank in India- Best in Strength and Soundness AwardEuro money Awards2009'Best Bank in India'Economic Times BrandEquity & NielsenResearch annual survey

2009Most Trusted Brand - Runner UpAsia Money 2009Awards 'Best Domestic Bank in India'IBA BankingTechnology Awards2009'Best IT Governance Award - Runner up'Global Finance Award 'Best Trade Finance Bank in India for 2009IDRBT BankingTechnology ExcellenceAward 2008'Best IT Governance and Value Delivery'Asian BankerExcellence in RetailFinancial Services'Asian Banker Best Retail Bank in India Award 2009 '36

SWOT ANALYSISSTRENGTHRight strategy for the right

products.Superior customer service vs.competitors.Great Brand ImageProducts have requiredaccreditations.High degree of customersatisfaction.Good place to workLower response time with

efficient and effective service.Dedicated workforce aiming at


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making a long-term career inthe field.

WEAKNESSESSome gaps in range for certainsectors.Customer service staff needstraining.Processes and systems, etcManagement cover insufficient.Sectoral growth isconstrained by lowunemployment levels andcompetition for staff37

OpportunitiesProfit margins will be good.Could extend to overseas broadly.New specialist applications.Could seek better customer deals.Fast-track career developmentopportunities on an industry-widebasis.An applied research centre to createopportunities for developingtechniques to provide added-valueservices.

ThreatsLegislation could impact.Great risk involvedVery high competition prevailing inthe industry.Vulnerable to reactiveattack by major competitorsLack of infrastructure in rural areascould constrain investment.High volume/low cost market isintensely competitive.

38OBJECTIVES OF THE STUDYTo know the customer satisfaction level and their perception regarding HDFCBank.To know the customerawareness regarding the Banks products.To know the level of interest of customer regarding the different schemes of bank.To know the preference of customer regarding the extra services.To know the problems of customer regarding bank.39

RESEARCH METHODOLOGYResearch is a careful investigation or inquiry especially through search for new factsin


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branch of knowledge: market research specifies the information. Required toaddress theseissues: designs the method for collecting information: manage and implements thedatacollection process analyses the results and communicates the finding and their

implications.Research problem is the one which requires a researcher to find out the bestsolution for thegiven problem that is to find out the course of action, the action the objectives can beobtained optimally in the context of a given environment.

RESEARCH DESIGNA framework or blueprint for conducting the research project. It specifies the detailsof theprocedures necessary for obtaining the information needed to structure and/or solveresearch problems. A good research design lays the foundation for conducting theproject.A good research design will ensure that the research project is conducted effectivelyandefficiently. Typically, a research design involves the following components, or tasks:

Define the information needed.

Design the research.

Specify the measurement and scaling procedures.

Construct and present a questionnaire or an appropriate form for data collection.

Specify the sampling process and sampling size.

Develop a plan of data analysis.

Data Collection: - The objectives of the project are such that both primary andsecondary data is required to achieve them. So both primary and secondary datawas usedfor the project. The mode of collecting primary data is questionnaire mode andsources ofsecondary data are various magazines, books, newspapers, & websites etc.40

1. Primary Data: The primary data was collected to measure the customersatisfactionand their perception regarding HDFC Bank. The primary data was collected bymeans ofquestionnaire and analysis was done on the basis of response received from thecustomers.The questionnaire has been designed in such a manner that the consumerssatisfactionlevel can be measured and consumer can enter his responses easily.

2. Secondary Data: The purpose of collecting secondary data was to achievetheobjective of studying the recent trends and developments taking place in banking.

Sample size100 customers were selected.


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Sampling UnitGurdaspur

Sampling TechniqueConvenient sampling.

Analysis and InterpretationAfter the data collection, it was compiled, classified and tabulated manually and withhelpof computer. Then the task of drawing inferences was accomplished with the help ofpercentage and graphic method.41

1. For how long you are part of HDFC Bank?Response No. of Respondents %age of RespondentsLess than 6 Months 20 20%Less than 1 Year 37 37%Less than 2 Years 14 14%

More than 2 Years 29 29%Total 100 100%20%37%14%29%Less than 6 Months Less than 1 YearLess than 2 Years More than 2 Years

Interpretation:From the above graph it is clear that majority of the respondents are part of HDFCBankfrom last one year i.e. 37%; 29% of the respondents are part of HDFC Bank from last

morethan 2 years; 20% respondents from 6 months and remaining 14% respondents arepart ofHDFC Bank for last two years.42

2. What are reasons that attract you to be a customer ofthebank?Response No. of Respondents %age of Respondents

Image 25 25%Extra Services 25 25%Services 45 45%All of above 5 5%image051015202530

354045


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imageExtra servicesservicesall of above

Interpretation:

From the above graph it is clear that majority of the respondents i.e. 45% arebecome partof HDFC Bank because of its services; 25% because of its image; 25% because ofits extraservices and rest because of all the three factors.43

3. Are you aware of the different services offered by HDFCBank?Response No. of Respondents %age of RespondentsYes 91 91%

No 9 9%Total 100 100%91%9%Yes No

Interpretation:From the above graph it is clear that majority of the respondents are aware ofproducts andservices offered by HDFC Bank i.e. 91% and 9% respondents are not aware ofservicesoffered by HDFC Bank.44

4. Do you know about these following services of thebank?Response No. of Respondents %age of RespondentsSaving a/c 100 100%Fixed deposits 100 100%Current a/c 53 53%Demat a/c 5 5%Credit cards 25 25%Mutual funds 16 16%Loans 95 95%020406080100120saving a/cfixed depositscurrent a/cdemat a/c

credit cardsmutual funds


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loans

Interpretation:From the above graph it is clear that majority of the respondents are aware of savinga/c &FDs i.e. 100%.53% are aware about current a/c, 5% demat a/c, 25% credit card,

16%mutual fund and 95% are aware of loans.45

5. Which of these services are you using?Response No. of Respondents %age of RespondentsSaving a/c 65 65%Fixed deposits 58 58%Current a/c 40 40%Demat a/c 3 3%Credit cards 0 0%

Mutual funds 10 10%Loans 47 47%010203040506070

saving a/csaving a/cfixed depositscurrent a/cdemat a/ccredit cardmutual fundsloans

Interpretation:From the above graph it is clear that majority of the respondents are using saving a/c

i.e.65%.58% are using FDs, 40% current a/c, 3% demat a/c, 0% credit card, 10%mutual fundand 47% are aware of loans.46

6. Which of these services are you further interested in?Response No. of Respondents %age of RespondentsSaving a/c 20 20%Fixed deposits 24 24%Current a/c 10 10%Demat a/c 0 0%Credit cards 0 0%


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Mutual funds 23 23%Loans 19 19%051015202530saving a/cFD'scurrent a/cdemat a/ccredit cardsmutual fundsloans

Interpretation:

From the above graph it is clear that majority of the respondents are interesting inFDs i.e.24%,20% are interesting in saving a/c, 40% current a/c, 23% mutual fund, 19% inloansand no body is interesting in credit cards and demat a/cs.47

7. Which service of the bank would you rate the best?Response No. of Respondents %age of RespondentsSaving a/c 33 33%Fixed deposits 40 40%Current a/c 12 12%Demat a/c 0 0%Credit cards 0 0%Mutual funds 10 10%Loans 5 5%051015202530

3540saving a/cFD'scurrent a/cdemat a/ccredit cardsmutual fundsloans

Interpretation:From the above graph it is clear that 33% of the respondent rate saving a/c, the bestproduct. 40% said FDs are best. 12% said current a/c.10% said about mutual

funds.5%said about loans and no one rate demat a/c & credit card.


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48

8. Do you know about the Extra services being provided bythebank?

Response No. of Respondents %age of RespondentsYes 69 69%No 41 41%yes69% no

Interpretation:From the above graph it is clear that 69% of the respondents are known about theinnovative services and the rest is unknown about it.49

9. Which of the following Extra service of the bank would

youlike to go in for?Response No. of Respondents %age of RespondentsPhone banking 5 5%ATM 60 60%Net banking 10 10%Bill payment 10 10%Non of these 5 5%All of these 10 10%0 20 40 60 80

all of thesenon of thesebill paymentnet bankingATMphone banking

Interpretation:From the above graph it is clear that 5% of the respondents would like to go forphonebanking, 60% for ATMs, 10% for net banking, 10% for bills payment, 5% dont want

anyinnovative services and 10% want all these services.

10. What is your perception about the service of the bank?50

Response No. of Respondents %age of RespondentsGood 35 35%Average 55 55%Poor 10 10%010203040


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5060GoodAveragePoor

Interpretation:From the above graph it is clear that 35% of the respondents found the service ofHDFCBank good, 55% found it average and 10% found it poor.

11. Are you satisfied with the dealing of the bank officials?51

Response No. of Respondents %age of RespondentsYes 30 30%No 25 25%To some extent 45 45%

051015202530354045

YesNOTO someextent

Interpretation:From the above graph it is clear that 30% of the respondents are satisfied with thedealingof the bank officials, 45% are not fully satisfied and 25% are dissatisfied.52

12. Any problem you are facing regarding the bank?

Response No. of Respondents %age of RespondentsTimeliness 78 78%Customer relationship 12 12%Infrastructure 10 10%Others 0 0%01020304050

6070


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80TimelinessCustomerrelationshipInfrastrusture

OtherInterpretation:From the above graph it is clear that 78% of the respondent facing the problem oftimeliness, 12% customer relationship and 10% of infrastructure.

13. How likely are you to recommend Bank services to afriend or colleague?53

Response No. of Respondents %age of RespondentsVery unlikely 8 8%Somewhat unlikely 30 30%Neither likely nor unlikely 17 17%Somewhat likely 35 35%Very likely 10 10%very unlikelysomewhatunlikelyneither likelynor unlikelysomewhatlikely

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

14. How will you rate the HDFC Bank in maintaining goodcustomer relationship?54

Response No. of Respondents %age of RespondentsGood 20 20%Average 57 57%Poor 33 33%good

Averagebad

Interpretation:From the above graph it is clear that 20% of the respondents said HDFC Bank isgood inmaintaining customer relationship, 57% said it is average and rest 33% said it is poor

in themaintenance.


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15. What is your overall satisfaction rating with our bank?Response No. of Respondents %age of Respondents55Very dissatisfied 2 2%Somewhat dissatisfied 9 9%Neither satisfied nordissatisfied21 21%Very satisfied 48 48%Somewhat satisfied 20 20%Rating of the company2 92148200 50 100 150very dissatisfied

somewhatdissatisfiedneither satisfiedvery satisfiedsomewhat satisfied

Interpretation:From the above graph it is clear that 48% of the respondents are very satisfied withthebank, 20% are somewhat satisfied, 21% are neither satisfied nor dissatisfied, 9% aresomewhat dissatisfied and 2% are very much dissatisfied with the bank.

FINDINGS OF THE STUDYMajority of the customers are satisfied with HDFC Bank.56Majority of the customers are aware of services and extra services offered byHDFCBank. But not all the services.The majority of the customers found services of the bank are average.Majority of the respondents are found the bank is average in maintaining the goodcustomer relationship.Majority of the respondent said that they are facing the problem of timeliness andrest 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 theproductsof the bank.The most preferable extra service is ATMs and the less preferable services arebills payment, net banking and phone banking.The majority of customers are more interested in FDs, mutual funds and savinga/cs.The majority of the customers are satisfied with the dealing of the officials uptosome extent.Main factor that attract customers towards bank is the services of the bank.Services that are most used by the customer are saving a/c, FDs, current a/c andloans.


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SUGGESTIONS AND RECOMMENDATIONS57More stress should give on the advertisement and promotional activities.The Bank should make some efforts to improving good relationship with customer.The bank should enhance their services according to the needs of the customer.The bank makes its procedures less time consuming.The bank should make effort to aware the customers about their all the extraservices.

LIMITATIONS OF THE STUDY58It is said, Nothing is perfect and if the quite is true, I am sure that there would befewshortcoming in this project also. Sincere efforts have been made to eliminatediscrepanciesas far as possible but few would have reminded due to limitations of the study.

These are:The research was carried out in a short period.

Limited sample size.

The information given by the respondent might be biased some of them might not

be interested to given correct information.

Some of the respondents of the survey were unwilling to share information.

59

CONCLUSIONAt the end I would like to conclude that The Indian banking market is growing at anastonishing rate, with Assets expected to reach US$1 trillion by 2010. HDFC bankhad anetwork of 1,142 branches And 3,295 automated teller machines in 528 cities inIndia.. Themajority of customers are satisfied. But the bank should target on the rest of thecustomerswho are not satisfied. The customers are aware about the banks services but theBankshould try to create more awareness among people. HDFC Bank should lay morestress on

advertisements, both in print as well as in other media for this purpose. Number offormalities should reduce, as customer feels irritated with lots of formalities and it willsavethe time of customer and Bank also.60

BIBLIOGRAPHYwww.bnknetindia/com/banking/financehttp://en.wikipedia.org/wiki/bankingfinancialcompanywww.hdfcbank.comwww.hdfcbank/products/financewww.google.com


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www.iloveindia.com .61

QUESTIONNAIREName ______________________ Age _______________________

Gender _____________________ Occupation _________________Annually Income _____________ e-mail _____________________Address _____________________________________________________1. For how long you are part of HDFC Bank?Less than 6 Months ( ) Less than 1 Year ( )Less than 2 Years ( ) More than 2 Years ( )2. 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. Are you aware of the different services offered by HDFC Bank?Yes ( ) No ( )624. Do you know about these services of the banking industry?a) Savings a/c Yes/nob) Fixed deposits yes/noc) Current a/cs yes/nod) Demat a/cs yes/noe) Credit card yes/nof) Insurances yes/nog) Mutual funds yes/no

h) Loans yes/no5. Which of these products are you using?a) Savings a/c yes/nob) Fixed deposits yes/noc) Current a/c yes/nod) De-mat a/c yes/noe) Credit card a/c yes/nof) Insurance yes/nog) Mutual finds yes/noh) Loans yes/no6. Which of these products are you more interested in?a) Savings a/c yes/noB) Fixed deposits yes/noc) Current a/c yes/no63d) De-mat a/c yes/noe) Credit card a/c yes/nof) Insurance yes/nog) Mutual finds yes/noh) Loans yes/no7. Which services of the banks would you rate the best?

a) Saving a/cb) Fixed deposits


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c) Current a/cd) De-mat a/ce) Credit card a/cf) Insuranceg) Mutual finds

h) Loans8. Do you know about the extra services being provided bythe bank?a) Yesb) No649. Which of the following extra service of the banks would youLike to go in for?a) Phone banking ( )b) ATM ( )c) Net banking ( )

d) Mobile banking ( )e) Bill payment ( )f) None of these ( )g) All of these ( )10. What is your perception regarding the service of the bank?a) Good ( )b) Average ( )c) Poor ( )11. Are you satisfied with the dealing of the bank officials?a. Yes ( )b. No ( )c. To some extend ( )12. Any problem you are facings regarding the bank?Timeliness ( )Customer relationship ( )Infrastructure ( )Others ( )6513. 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 ( )


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Thanks for participating in the survey.66

hdfc report manoj

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