The banking sector in India is the most dominant part of the financial system. It has significantly progressed since liberalization, with improved capital adequacy, profitability, and asset quality. Competition among banks has increased due to globalization. Banks now have opportunities to expand their market share by diversifying into investment banking, insurance, and other services. The Basel II accord introduced more stringent regulation for banks and a revised framework for managing credit risk and allocating capital reserves. Looking ahead, banks must focus on resolving undercapitalized institutions, improving rural cooperative credit, and enhancing governance and financial management.
The banking sector in India is the most dominant part of the financial system. It has significantly progressed since liberalization, with improved capital adequacy, profitability, and asset quality. Competition among banks has increased due to globalization. Banks now have opportunities to expand their market share by diversifying into investment banking, insurance, and other services. The Basel II accord introduced more stringent regulation for banks and a revised framework for managing credit risk and allocating capital reserves. Looking ahead, banks must focus on resolving undercapitalized institutions, improving rural cooperative credit, and enhancing governance and financial management.
The banking sector in India is the most dominant part of the financial system. It has significantly progressed since liberalization, with improved capital adequacy, profitability, and asset quality. Competition among banks has increased due to globalization. Banks now have opportunities to expand their market share by diversifying into investment banking, insurance, and other services. The Basel II accord introduced more stringent regulation for banks and a revised framework for managing credit risk and allocating capital reserves. Looking ahead, banks must focus on resolving undercapitalized institutions, improving rural cooperative credit, and enhancing governance and financial management.
The Indian economy is emerging as one of the strongest economy of the world with the GDP growth of more than 8% every year. This has given a great support for the development of banking industry in the country .Due to recession it has come down to .!%. "ut market now stabili#ing. Due to globali#ation$ competition among the banks has drastically been increased .%s India has a substantial upper and middle class income hence the banks have immense opportunities to increase their market shares. The consumer being on the receiving end is in the comfortable position but the banks trying to increase their market share have to continuously add value for consumers in order to increase market share and sustain their growth. BANKING SECTOR The banking sector is the most dominant sector of the financial system in India. &ignificant progress has been made with respect to the banking sector in the post liberali#ation period. The financial health of the commercial banks has improved manifolds with respect to capital ade'uacy$ profitability$ and asset 'uality and risk management. (urther$ deregulation has opened new opportunities for banks to increase revenue by diversifying into investment banking$ insurance$ credit cards$ depository services$ mortgage$ securiti#ation$ etc. )iberali#ation has created a more competitive environment in the banking sector 1 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES 1.2 INDUSTRY PROFILE a) ORIGIN AND DEVELOPMENT OF THE INDUSTRY The origin of banking in India is traceable in ancient time through the modern banking hardly *++ years old. The main function of bank is to accept deposits and grant loans. There is evidence of these functions being performed by a section of the community in the ,edic periods. There are many references of debt in the ,edic literature. During the -amayana and .ahabharata areas banking$ which was a side business during the ,edic period$ become a full/ time business activity for the people. During the smriti period$ which followed the ,edic period and the 0pic age$ bankers performed the function of the modern banks. The members of the ,aish community carried on the banking business and .anu speaks of earning through interest as the business of ,aishays. 1e accepted deposits from the public$ granted loans against pledges and personal security$ granted simple open loans$ acted as bailee for his customers$ subscribed to public loans by granting loans to kings$ acted as treasurer and banker to the state and managed the currency of the country. Indigenous bankers used to maintain a regular system of accounts and borrowers used to sign the loan deeds. 2 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES Retail a!"i!# %ccording to investopedia.com$ retail banking is typical mass/market banking where individual customers use local branches of larger commercial banks. &ervices offered include2 savings and checking accounts$ mortgages$ personal loans$ debit cards$ credit cards$ and so forth. Types of retail banks P$i%ate a!" Private "anks is a bank that is not incorporated. 0ither an individual or a general partner3s4 with limited partner3s4 owns a non/incorporated bank. In any such case$ the creditors can look to both the 5entirety of 6the bank7s8 assets5 as well as the entirety of the sole/proprietor7s9general/partners7 assets. These banks have a long tradition in &wit#erland$ dating back to at least the revocation of the 0dict of :antes 3;<84. C&''e$(ial a!"i!# % commercial bank is a type of financial intermediary and a type of bank. =ommercial bank has two possible meanings2 =ommercial bank is the term used for a normal bank to distinguish it from an investment bank. This is what people normally call a 5bank5. The term 3 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES 5commercial5 was used to distinguish it from an investment bank. &ince the two types of banks no longer have to be separate companies$ some have used the term 5commercial bank5 to refer to banks which focus mainly on companies. In some 0nglish/speaking countries outside :orth %merica$ the term 5trading bank5 was and is used to denote a commercial bank. It raises funds by collecting deposits from businesses and consumers via checkable deposits$ savings deposits$ and time 3or term4 deposits. It makes loans to businesses and consumers. It also buys corporate bonds and government bonds. Its primary liabilities are deposits and primary assets are loans and bonds. Detailed information on banks sectoral e>posure of credit reveals that over two/thirds of the credits flow has been on account of retail$ housing and other priority sector loans. "anks credit flow e>posure to large 0nterprises continues to remain buoyant with recent indications that credit to agriculture and .icro credit has also picked up. The Investment "anking and .arkets division brings together the advisory and financing$ e'uity securities$ asset management$ treasury and capital markets$ and private e'uity activities of the Group to complete the =I". structure and provide a complete range of financial products to our clients. Increasingly$ 0=% financing is being considered by customers and we work closely with our pro?ect e>port finance teams$ both onshore and offshore$ to provide structured solutions. 4 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES ) GRO)TH AND PRESENT STATUS OF THE INDUSTRY =ommercial banking can also refer to a bank or a division of a bank that mostly deals with deposits and loans from corporations or large businesses$ as opposed to normal individual members of the public 3retail banking4. as in the Indian banking.. The most prominent on our minds in the conte>t of banking these days$ perhaps$ are the implications arising out of the "asel II accord. "anks$ as we all know$ are sub?ected to more intense regulation as compared to the non/financial firms. This is probably because the banks possess certain 7special7 characteristics2 "anks are much more leveraged than the other firms due to their capacity to garner public deposits. The asset / liability structure of the banks is also different from not only the non/financial firms but also the financial firms. To illustrate$ the risk in an insurance company arises mainly from the liability side of the balance sheet in the form of insurance claims whereas for the bank the risk mainly comes from the diminution of asset values 3for e>ample$ illi'uid loans that are not fully recoverable4. The deposits which constitute a ma?or part of the liability of banks are repayable on demand$ unsecured and their principal amount does not change in value whereas the loans of a bank are illi'uid and there can be erosion in the value of loans or of other assets. The li'uidity transformation by an insurance company is in the reverse direction as compared to a bank. The balance/sheet structure of an insurance company is the least likely to give rise 5 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES to systemic risk$ whereas banks due to their typical asset liability mismatches i.e. long term assets funded by short term liabilities$ may be prone to @runA and pose a very high degree of potential systemic risk. The resolution costs of systemic bank insolvencies and significant problems can be substantial. weighted differently. Ba*el I proposals forced the banks to look at credit risk and regulatory capital more closely than they had done earlier. %s banks found ways to arbitrage regulatory capital$ some of the provisions of "asel I became less relevant. &imultaneously$ banks in the G/;+ countries developed newer approaches to manage credit risk by building portfolio models for pricing$ provisioning and allocating economic capital for the credit portfolios. These developments made the weaknesses in the "asel I framework more apparent and this set the stage for the creation of 7International =onvergence of =apital .easurement and =apital &tandards2 % -evised (ramework7$ popularly known as "asel II. T+e Ba*el =ommittee on "anking &upervision has observed that the fundamental ob?ective in revising the ;B88 %ccord has been$ and I 'uote$ 7to develop a framework that would further strengthen the soundness and stability of the international banking system while maintaining sufficient consistency that capital ade'uacy regulation will not be a significant source of competitive ine'uality among internationally active banks. The 3"asel4 =ommittee believes that the revised (ramework will promote the adoption of stronger risk management practices by the banking industry$ and views this as one of its ma?or benefits7 Cn'uote 6 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES () F,t,$e &- t+e i!.,*t$/ -eflecting on future prospects in banking$ immediate focus has to be on the cleaning up of the remnants of undercapitali#ed banks$ while concentrating on improvements in the rural co/operative credit system. It is also necessary to ensure improvements in their governance and financial management. In the banking system as a whole$ a healthy credit culture encompassing appropriate pricing$ 'uality of service$ financial inclusion and contract/ enforcement would be vital. The -eserve "ank of India has$ in the service of our country$ a proven track record and professionalism$ which have lent it considerable credibility / both domestically and globally. This credibility enables the -"I to confidently carry the reforms forward to credibly maintain price and financial stability$ while enabling self/accelerating e'uitable growth at elevated levels The Indian financial sector is ready for consolidation$ said B per cent of the respondents. Given the increased competition$ and the implementation of "asel II norms in the near future$ the banking industry of the country would be better off with si> to seven banks as big as &tate "ank of India$ said the survey. 1owever$ voluntary mergers are better than forced ones. % ma?ority of the public sector banks also demanded more autonomy to fi> salary levels proportionate to performance. In order to improve employee productivity it is essential to offer competitive compensation packages at all levels$ the survey said. %bout B* per cent of the public sector banks 7 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES respondents voiced that they do not have sufficient autonomy to offer attractive incentive packages to employees to ensure commitment levels. &ome banks also said that in one/year7s time$ banks should be permitted to issue preference shares. %ccording to the survey$ some of the strengths of the banking industry are regulatory systems$ economic growth$ technological advancement$ risk assessment systems and credit 'uality. %reas that need improvement include diversification of markets beyond big cities$ human resources systems$ si#e of banks$ high transaction costs$ infrastructure and labour infle>ibilities. %s per the survey some strategies that can help India achieve a world class banking system are consolidation$ strict corporate governance norms$ regional e>pansion within the country and outside$ higher (DI limits and (ree Trade %greements with countries where India has comparative advantage in banking sector. 5%vailability and reach of 'uality products is confined to ?ust big cities. Thus it is essential now to e>pand the gamut of banking services both within India as well as outside$5 the survey said. 1owever$ banks in India are yet to effectively leverage technology. I=I=I "ank has been acknowledged to be among the first to e>plore new mediums like Internet. India has among the lowest penetration of retail loans in %sia. Though the sector has been growing at around ; per cent$ there is still a huge opportunity to tap into. .iddle and /high/income homes in India has increased from ;.;< crore 3;;.< million4 in ;BB to *.! crore 3*.! million4 in *++*. 8 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES Interest rates on retail loans have been dropping rapidly too. (or instance residential mortgages slumped by ! per cent over the last four years. &ector &hare of GDP % Growth of D; (E *++F Growth in D* (E *++F &ervices <.; !.G B.8 Industry *;.8 .8 <.F %griculture **.; ;.! !.G GDP .! 8.G 5The entry of a number of banks in India in the last few years has helped provide increased coverage and a number of new products in the market$5 says Hamath. banking sector today is estimated to be at -s ;! trillion and total deposits are estimated at -s ;F trillion.
9 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES 2.1 ORIGIN OF THE ORGANI0ATION T+e H&,*i!# De%el&1'e!t Fi!a!(e C&$1&$ati&! Li'ite. 31D(=4 was amongst the first to receive an 7in principle7 approval from the -eserve "ank of India 3-"I4 to set up a bank in the private sector$ as part of the -"I7s liberali#ation of the Indian "anking Industry in ;BBG. The bank was incorporated in %ugust ;BBG in the name of 71D(= "ank )imited7$ with its registered office in .umbai$ India. 1D(= "ank commenced operations as a &cheduled =ommercial "ank in Ianuary ;BB. 1D(= is India7s premier housing finance company and en?oys an impeccable track record in India as well as in international markets. &ince its inception in ;B!!$ the =orporation has maintained a consistent and healthy growth in its operations to remain the market leader in mortgages. Its outstanding loan portfolio covers well over a million dwelling units. 1D(= has developed significant e>pertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. 10 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES 2.2 GRO)TH AND DEVELOPMENT OF THE ORGANI0ATION 1D(= "ank is head 'uartered in .umbai. The "ank at present has an enviable network of over <8G branches spread over F;< cities across India. %ll branches are linked on an online real/time basis. =ustomers in over ;*+ locations are also serviced through Telephone "anking. The "ank7s e>pansion plans take into account the need to have a presence in all ma?or industrial and commercial centers where its corporate customers are located as well as the need to build a strong retail customer base for both deposits and loan products. "eing a clearing9settlement bank to various leading stock e>changes$ the "ank has branches in the centers where the :&09"&0 have a strong and active member base. The "ank also has a network of about over G+++ networked %T.s across these cities. .oreover$ 1D(= "ank7s %T. network can be accessed by all domestic and international ,isa9.aster=ard$ ,isa 0lectron9.aestro$ Plus9=irrus and %merican 0>press =redit9=harge cardholders. In a milestone transaction in the Indian banking industry$ Times "ank )imited 3another new private sector bank promoted by "ennett$ =oleman J =o.9Times Group4 was merged with 1D(= "ank )td.$ effective (ebruary *<$ *+++. %s per the scheme of amalgamation approved by the shareholders of both banks and the -eserve "ank of India$ shareholders of Times "ank received ; share of 1D(= "ank for every .! shares of Times "ank. 11 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES 2.2 PRESENT STATUS OF THE ORGANI0ATION %t present 1D(= "ank is the leading most bank in the housing and development sector and is growing very fast in the other banking sectors such as life insurance J mutual fund. The authori#ed capital of 1D(= "ank is -s.G+ crore 3-s.G. billion4. The paid/up capital is -s.F;;.B crore 3-s.F.; billion4. The 1D(= Group holds **.;% of the bank7s e'uity and about ;B.G% of the e'uity is held by the %D& Depository 3in respect of the bank7s %merican Depository &hares 3%D&4 Issue4. -oughly F;.F% of the e'uity is held by (oreign Institutional Investors 3(IIs4 and the bank has about ;B+$+++ shareholders. The shares are listed on The &tock 0>change$ .umbai and the :ational &tock 0>change. The bank7s %merican Depository &hares are listed on the :ew Eork &tock 0>change 3:E&04 under the symbol 51D". 1D(= )imited$ "ennett$ =oleman J =o. )td. and its group companies 3the promoters of erstwhile Times "ank )imited4 and =hase (unds had entered into tripartite agreement dated :ovember *<$ ;BBB for effecting amalgamation of Times "ank )imited with the "ank. Cnder this %greement$ "ennett =oleman Group has a right to nominate one Director on the "oard of the "ank as long as its holding e>ceeds % of the share capital of the "ank. =urrently$ as on .arch F;$ *++!$ the "ennett =oleman Group holds .;% of the share capital of the "ank and .r. ,ineet Iain represents the group on the "oard of the "ank. 12 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES 2.3 FUNTIONAL DEPARTMENT OF THE ORGANI0ATION 13 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES Chairman Managing Director Executive Director Regional ale! "ea# $rea !ale! "ea# $rea ale! Manager De%ut& ale! Manager 'eam (ea#er Contract ale! Executive 2.4 ORGANI0ATION STRUCTURE AND ORGANI0ATION CHART 14 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES Chairman Managing Director ) C E * +oint Managing Director ,-nternational .u!ine!!/ +oint Managing Director ,Dome!tic .an0ing/ Executive Director Executive Director Executive Director Executive Director r1 2eneral Manager! 2eneral Manager! 2.5 PRODUCT AND SERVICE PROFILE OF THE ORGANI0ATION )+&le*ale Ba!"i!# Se$%i(e* The "ank7s target market ranges from large$ blue/chip manufacturing companies in the Indian corporate to small J mid/si#ed corporate and agri/ based businesses. (or these customers$ the "ank provides a wide range of commercial and auctional banking services$ including working capital finance$ trade services$ transactional services$ cash management$ etc. The bank is also a leading provider of structured solutions$ which combine cash management services with vendor and distributor finance for facilitating superior supply chain management for its corporate customers. "ased on its superior product delivery 9 service levels and strong customer orientation$ the "ank has made significant inroads into the banking consortia of a number of leading Indian corporates including multinationals$ companies from the domestic business houses and prime public sector companies. It is recogni#ed as a leading provider of cash management and transactional banking solutions to corporate customers$ mutual funds$ stock e>change members and banks. Retail Ba!"i!# Se$%i(e* The ob?ective of the -etail "ank is to provide its target market customers a full range of financial products and banking services$ giving the customer a one/ stop window for all his9her banking re'uirements. The "ank also has a wide array of retail loan products including %uto )oans$ )oans against marketable 15 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES securities$ Personal )oans and )oans for Two/wheelers. It is also a leading provider of Depository Participant 3DP4 services for retail customers$ providing customers the facility to hold their investments in electronic form. 1D(= "ank was the first bank in India to launch an International Debit =ard in association with ,I&% 3,I&% 0lectron4 and issues the .aster=ard .aestro debit card as well. The "ank launched its credit card business in late *++;. "y &eptember F+$ *++$ the bank had a total card base 3debit and credit cards4 of .* million cards. The "ank is also one of the leading players in the 5merchant ac'uiring5 business with over +$+++ Point/of/sale 3PK&4 terminals for debit 9 credit cards acceptance at merchant establishments. De1&*it* I. Sa%i!#* A((&,!t These accounts are primarily meant to inculcate a sense of saving for the future$ accumulating funds over a period of time. Lhatever customer occupation$ bank is confident that customer will find the perfect banking solution. Debit/cum/%T. card %uto Invest %ccount Internet "anking Phone banking %nywhere "anking &tanding Instruction :omination facility 16 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES Doorstep service II. S1e(ial *a%i!#* a((&,!t =omprehensive banking &olution with added features &upplementary savings Ideal for ta>/e>empt entities Internet banking %nywhere banking Doorstep service Inward remittance III. Se!i&$ Citi6e! Se$%i(e* 1igher interest rates &pecial demand loans against deposit (ree collection of outstation che'ues drawn on our locations. Debit/cum/%T./card %uto Invest %ccount Internet banking Phone banking %nywhere banking &tanding instructions :omination facility 17 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES IV. Fi7e. .e1&*it* Lide range of tenures =hoice of investment plans Partial withdrawal permitted &afe custody of fi>ed deposit receipts %uto renewal possible )oan facility available V. D8Mat a((&,!t* (ree trading account Knline buying and selling of shares )ess documentation =an control loss of money 18 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES 2.9 MARKET PROFILE OF THE ORGANISATION 1D(= "ank has its deposit programmes rated by two rating agencies / =redit %nalysis J -esearch )imited. 3=%-04 and (itch -atings India Private )imited. The "ank7s (i>ed Deposit programme has been rated 7=%-0 %%% 3(D47 6Triple %8 by =%-0$ which represents instruments considered to be 5of the best 'uality$ carrying negligible investment risk5. =%-0 has also rated the "ank7s =ertificate of Deposit 3=D4 programme 5P- ;M5 which represents 5superior capacity for repayment of short term promissory obligations5. (itch -atings India Pvt. )td. 3;++% subsidiary of (itch Inc.4 has assigned the 5t%%% 3ind45 rating to the "ank7s deposit programme$ with the outlook on the rating as 5stable5. This rating indicates 5highest credit 'uality5 where 5protection factors are very high5. 1D(= "ank also has its long term unsecured$ subordinated 3Tier II4 "onds of -s.G billion rated by =%-0 and (itch -atings India Private )imited. =%-0 has assigned the rating of 5=%-0 %%%5 for the Tier II "onds while (itch -atings India Pvt. )td. has assigned the rating 5%%% 3Ind45 with the outlook on the rating as 5stable5. In each of the cases referred to above$ the ratings awarded were the highest assigned by the rating agency for those instrumentsN Lithin this business$ the bank has three main product areas / (oreign 0>change and Derivatives$ )ocal =urrency .oney .arket J Debt &ecurities$ and 0'uities. Lith the liberali#ation of the financial markets in India$ corporate 19 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES need more sophisticated risk management information$ advice and product structures. To comply with statutory reserve re'uirements$ the bank is re'uired to hold *% of its deposits in government securities. 2.1 STUDENTS )ORK PROFILE :R&le a!. Re*1&!*iilit/). I am working as contract sales e>ecutive in 1D(= bankO my role is to find out people who want to open savings %9c. I have to convince the customers to open savings account in our bank. %fter convincing$ I use to fill up the forms through customers and collect their documents to login the form for opening their accounts. There are some targets in a month$ which we need to reach in bank. I have done many activities like park activities$ %T. activities$ %partments activities etc to generate my leads. "y doing these activities we get customers for opening accounts. The roles and responsibilities handled by me are2 ;4 Generating leads for opening accounts *4 Preparing daily sales report of daily activities F4 %nswering to customer 'ueries. G4 ,erification of the documents given by the customers. %fter three month working e>perience I came to know how to handle the people J task in the organi#ation. :ow I feel much confident. "eing a sales e>ecutive I have to answer to the customers as well as team leader to the 'ueries. I have to fulfill my individual target. 20 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES 2.2 DESCRIPTION OF LIVE E;PERIENCES. This training has helped me a lot in understanding the realities of the outside world. I also came to know the real meaning of the word marketing. There are both negative and positive e>periences of our training. &ome of these are2 -eal e>posure to the corporate world$ which helped me a lot in understanding the mind$ set of e>ecutives to a certain e>tent. )earned about customer re'uirements$ customer mind set how to convince others and many. It helped me in improving my communication skills$ presentation skills and how to behave in front of public. %part from these positive e>periences I faced certain problems too which I would like to discuss here2 It was 'uite difficult in the beginning to cope with both college studies and ?ob. Initially it took me sometime to understand the process of sales opening$ closing$ however with time I understood the problem and worked on it sincerely. :ow I feel much more confident in handling sales calls. 21 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES 3.1 STATEMENT OF RESEARCH PROBLEM The company must gain confidence of the customers and provide services par e>cellence. Therefore$ undertaking the pro?ect helps in assessing the customer care level of 1D(= "%:H. The study is applied descriptive as well as diagnostic in nature. It also tends to find the customer view about important aspects of the services. %t the same time it was intended to find the customer view about the product and the 'uality of service improvement. In short this problem can be defined as2 <A$e (,*t&'e$* *ati*-ie. =it+ t+e *e$%i(e* at HDFC>? In todayAs era of cutthroat competition$ it is of an uttermost importance to gain a cutting edge over the competition$ and develop a large market share. This is only possible if there is a large customer base for the company. 22 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES 3.2 STATEMENT OF RESEARCH OB@ECTIVESA ;. To evaluate the perception level of the account holders towards 1D(= "%:H *. To study the importance of customer relationship. F. To study the impact of customer relationship management on bank customers. G. To analy#e the e>pectations of banking customers. . To suggest the banks under study to strengthen the customer relations. <. To analy#e the satisfaction level of customers of 1D(= "%:H on the following heads2 ;. Lorking environment *. =ustomer care F. Personal care of the customers G. "ank timings . Kverall services <. &pecial schemes provided 23 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES 3.2 RESEARCH DESIGN AND METHODOLOGY. THE METHOD USED OF DATA COLLECTION AREA P$i'a$/ Data Se(&!.a$/ Data PRIMARY DATAA Primary data are dataAs$ which are original in nature$ and are collected by the researcher. The method used to collect the primary data was &urvey .ethod. The survey method included a structured 'uestionnaire that was given to the respondent. SECONDARY DATAA &econdary data are data$ which has been collected and compiled in advance for another needed purpose. &econdary data is an important method to know the present problem faced by the account holders in the field of 1D(= "%:H. :ewspaper$ %rticles$ "ooks$ .aga#ines etc. have been used to prepare the 'uestionnaire. PLAN OF ANALYSIS 2 =alculations have been done for interpretation such as percentages$ averages. The data collected from respondents through 'uestionnaire are organi#ed$ coded$ processed and tabulated in order to create graphs and charts to make the pro?ect understandable. =hi &'uare Test is performed on the inferred data to arrive at a statistical conclusion. 24 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES TOOLS FOR DATA COLLECTION The tool used for data collection is Primarily PDuestionnaire methodQ. The 'uestions contained2 O1e!8 E!.e. B,e*ti&!* Lhere the respondent was given a chance to reply or give suggestions to the =ompany. This included (ree -esponses 'uestions where the respondents were given the freedom to give suggestions. Cl&*e 8 E!.e. B,e*ti&!* Lhere the respondent was given a lesser chance to reply. This includes multiple =hoice Questions where the respondents were given a number of alternatives. S(ale* -espondents were given a scale whose positions range from P1ighly &atisfiedQ to P1ighly DissatisfiedQ A$ea &- *,$%e/ The area selected to find the satisfactory level was in and around "annerghatta -oad. Sa'1le U!it The sample was considered to be the =ustomers of 1D(= "%:H SAMPLINGA -andom sampling method to select a sample of ;++ customers among the customers of the 1D(= "%:H. 25 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES 3.3 ANALYSIS OF DATA %s the competition level in the banking sector is ever increasing$ it becomes indispensable for the company 31D(=4 to conduct the study on the perception and satisfaction level of its customers. This study will help the company in making its new strategies to satisfy its customer in the ways in which he or she wants to be satisfied and to the company its position in the market.
The study on customer satisfaction has the geographical coverage limited to "annerghatta -oad only. This study will help the company to know in detail about the customer perception and their attitude towards the company services and products. The company will gain the feedback from the customer to improve its products and 'uality of service. 26 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES TABLE 1A SHO)ING DISTRIBUTION OF AGE %G0 G-KCP :K. K( -0&PK:D0:T& P0-=0:T%G0 *+ R F+ ** **% F+ R G+ GF GF% G+ %:D %"K,0 F F% TKT%) ;++ ;++% ANALYSIS The above table shows that **% of the respondents fall under the age group of *+ R F+ years $GF% of the respondents fall under age group of F+ R G+ years and F% of the respondents belonging to age group of G+ and above years. INFERENCE 1ence it clearly shows that the ma?ority of the respondents fall under the age group of F+ R G+ years i.e. GF%. 27 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
28 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES 2R$3"41 TABLE 2A SHO)ING DISTRIBUTION OF SE; OR GENDER G0:D0- :K. K( -0&PK:D0:T& P0-=0:T%G0 (0.%)0 GF GF% .%)0 ! !% TKT%) ;++ ;++% ANALYSIS The table shows that there are !% of male respondents and GF% of female respondents. INFERENCE Thus the table clearly shows that the ma?ority of the respondents are male i.e. !%. 29 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES 30 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES 2R$3"42 TABLE 2A SHO)ING THE DISTRIBUTION OF THE MONTHLY HOUSEHOLD INCOME .K:T1)E 1KC&01K)D I:=K.0 :K. K( -0&PK:D0:T& P0-=0:T%G0 )0&& T1%: -& ;+$+++ + +% -& ;+$+++ R -& *+$+++ *F *F% .K-0 T1%: -& *+$+++ !! !!% TKT%) ;++ ;++% ANALYSIS The above table shows that there are no respondents who have a monthly household income of less than -s ;+$+++$ there are *F% of the respondents who fall under -s ;+$+++ R -s *+$+++ household income and !!% fall under the more than -s *+$+++ household income category. INFERENCE The table clearly shows that the ma?ority of the respondents have more than -s *+$+++ of monthly household income$ that is !!%. 31 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES TABLE 3A SHO)ING THE IMPORTANCE OF A SMILING EMPLOYEE ACCORDING TO A CUSTOMER 32 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES 2R$3"43 I.PK-T%:=0 :K. K( -0&PK:D0:T& P0-=0:T%G0 ,0-E I.PK-T%:T % &K.0L1%T I.PK-T%:T *+ *+% :KT &K I.PK-T%:T *+ *+% :KT %T %)) I.PK-T%:T % TKT%) ;++ ;++% ANALYSIS %ccording to the table % of the respondents feel its e>tremely important for a employee to welcome a customer with a smile$*+% respondents think its somewhat important while *+% feel its not so important and % think its not at all important. INFERENCE 1ence when a customer enters the bank $ he looks for a smiling employee to welcome him$ its e>tremely important to him3% of respondents think its very important4. 33 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES TABLE 4A SHO)ING THE IMPORTANCE OF THE SI0E OF THE CHEBUE BOOK ACCORDING TO THE CUSTOMERS I.PK-T%:=0 :K. K( -0&PK:D0:T& P0-=0:T%G0 ,0-E I.PK-T%:T *+ *+% 34 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES 2R$3"44 &K.0L1%T I.PK-T%:T G G% :KT &K I.PK-T%:T F+ F+% :KT %T %)) I.PK-T%:T % TKT%) ;++ ;++% ANALYSIS The table shows that according to the *+% of the respondents its very important that the che'ue book si#e is appropriate$F+% of the respondents think its not so important$ % of the respondents think its not at all important while G% of the respondents think its somewhat important. INFERENCE 1ence the table clearly shows that the ma?ority of the respondents think its somewhat important for the che'ue book si#e to be appropriate. 35 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES TABLE 5A SHO)ING THE IMPORTANCE OF THE BANK TIMING ACCORDING TO THE CUSTOMERS I.PK-T%:=0 :K.K( -0&PK:D0:T& P0-=0:T%G0 ,0-E I.PK-T%:T < <% &K.0L1%T I.PK-T%:T *+ *+% :KT &K I.PK-T%:T ; ;% :KT %T %)) I.PK-T%:T + +% TKT%) ;++ ;++% 36 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES 2R$3"45 ANALYSIS The above table relates that the <% of the respondents think its e>tremely important for the bank timing to be convenient$*+% of the respondents think its somewhat important$;% of the respondents think its not so important while none of them think its not at all important. INFERENCE Table number ! clearly shows that ma?ority of the customers think that its very important that the bank timings are convenient i.e. <% 37 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES TABLE 9A SHO)ING THE IMPORTANCE OF THE : 0ERO BALANCE SAVINGS ACCOUNTS ) FACILITY ACCORDING TO THE CUSTOMERS I.PK-T%:=0 :K. K( -0&PK:D0:T& P0-=0:T%G0 ,0-E I.PK-T%:T 8+ 8+% &K.0L1%T I.PK-T%:T *+ *+% :KT &K I.PK-T%:T + +% :KT %T %)) I.PK-T%:T + +% TKT%) ;++ ;++% ANALYSIS %ccording to the table above none of the respondents think its not at all or not so important that the S0-K "%:)%:=0 =C--0:T %==KC:T 38 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES &1KC)D be provided$ while 8+% of the respondents think its very important and *+% of the respondents think its somewhat important. INFERENCE 1ence the table clearly shows that the ma?ority of the customers think its very important that the S0-K "%)%:=0 &%,I:G& %==KC:T facility should be provided that is 8+%. 39 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES 2R$3"47
TABLE CA SHO)ING THE IMPORTANCE OF TRANSACTION TIMING IN HDFC BANK ACCORDING TO CUSTOMRES ,%-%I")0& -0&PK:D0:T& P0-=0:T%G0 1IG1)E &%TI&(I0D ;+ ;+% &%TI&(I0D <* <*% :0CT-%) *F *F% DI&&%TI&(I0D % 1IG1)E DI&&%TI&(I0D + +% ;++ ;++% ANALYSIS (rom the above table $ it can be analy#ed that out of ;++ respondents ;+% only are highly satisfied with the Transaction timing of the "ank $ <*% of them are satisfied $ *F% of them are on the neutral side . .oreover % of them are dissatisfied and none are highly dissatisfied. 40 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES INFERENCE Therefore$ it can be inferred that almost % of the respondents are not happy with the time taken for transaction . This indicates that the customers are not satisfied with the speed of the transaction . 41 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES 2R$3"48 TABLE DA SHO)ING THE IMPORTANCE OF CUSTOMER CARE IN HDFC BANK ACCORDING TO CUSTOMRES ,%-%I")0& -0&PK:D0:T& P0-=0:T%G0 1IG1)E &%TI&(I0D ;* ;*% &%TI&(I0D <F <F% :0CT-%) *; *;% DI&&%TI&(I0D G G% 1IG1)E DI&&%TI&(I0D + +% TKT%) ;++ ;++% ANALYSIS The above table shows that out of ;++ respondents ;*% are highly satisfied with the =ustomer =are of the 1D(= "ank$ <F% of them are satisfied and *;% are neutral$ moreover G% of them are dissatisfied and none of them are highly dissatisfied. INFERENCE 42 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES In todayAs world customer care is one of the most important criteria as it helps the organi#ation to retain their or add market share . Therefore $ 1D(= should work towards the G% dissatisfied customers either by training the employees or making the procedure customer friendly 43 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES 2R$3"49 TABLE 1EA SHO)ING THE IMPORTANCE OF HDFC BANK SERVICE ACCORDING TO CUSTOMRES ,%-%I")0& -0&PK:D0:T& P0-=0:T%G0 0T=0PTIK:%)E &%TI&(I0D G G% &%TI&(I0D G+ G+% :0CT-%) < <% ANALYSIS The above table shows that out of ;++ respondents G% are e>ceptionaly satisfied with the &ervice of the 1D(= "ank$ G+% of them are satisfied and <% are neutral. INFERENCE In todayAs world "ank &ervice is one of the most important criteria as it helps the organi#ation to retain their or add market share . Therefore $ 1D(= should work towards the <% neutral customers either by training the employees or making the procedure customer friendly 44 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES 45 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES 3.4 SUMMARY OF FINDINGS .ost of the customers of the bank are satisfied$ but there is a minority of customers who are still looking for improvement in this aspect of service area as well in the field of working environment. Kne area of strength of the bank which it can really boast off as most of the customers are satisfied when it comes to customer care. Kverall the result of survey has shown a positive sign for the overall services from where on they can increase their customer base with the e>ception of a few dissatisfied customers which needs to be looked after. The bank has caused a lot of inconvenience to the customers regarding its banking hours as shown from the result of the survey. (le>ible banking hours should be achieved to attain higher customer satisfaction again lot of them are even satisfied . There is a mi>ed response when it comes to transaction time. % certain section or respondents seem to be satisfied but a substantial number of customers are looking for faster transaction time. V.1 SUMMARY OF LEARNIG E;PERIENCE. 46 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES I went through a good learning practice in my 1D(= "ank for the past eight months which has developed me to heights of understanding the customers mind as well their taste and preferences in the field of services sector. The uncertain world or market structure e>isting in India has very typical way of e>pectation when it comes to private bank and the banks have reali#ed their needs and desires and working towards satisfying their re'uirements and my bank is also in its run for customer satisfaction The working environment was e>cellent which enabled me to learn the products and services features as well as the internal aspects of management level in my bank. This pro?ect has opened up the new window of learning$ which enables me into the clear understanding of corporate world The proper understanding of customers is must when it comes to service industry and that e>actly what I went through in this period of management training period. V.2 CONCLUSIONS AND RECOMMENDATIONS. 47 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES CONCLUSION 1ence$ I conclude by understanding that marketing concepts is essentially about the few things which contribute to the banks success2 The bank cannot e>ist without customer. The purpose of a bank is to create$ win and keep a customer. The customer is and should be the central focus of everything the bank does. Cltimate aim of a bank is to deliver satisfaction to the customers. =ustomer satisfaction is affected by the performance of all the personnel of the bank. It is also a way of organi#ing the bank. The starting point for the organi#ational design should be the customer and the bank should ensure that the services are performed and delivered in the most effective way. &ervice facility should also be designed for customer convenience. 48 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES RECOMMENDATIONS The environment of the bank can be made more customers friendly and the working of the bank should be more organi#ed and efficient by training the employees of the bank. *. Improving customer care facilities by providing *G hours banking facilities more effective. F. .ore number of =C--0:T %==KC:T& Lith different features are looked forward from public. G. Proper and general insturuction about the maintenance and working of current account and its benefits should be made clearer. . The banking hours should be more customers friendly it should close little later in the evening. <. The banking process needs to be more systematic so that the transaction time can be reduced. !. There should be more branches especially in smaller towns and cities . 8. &pecial schemes should be provided for smaller retail shops as well new package of offers and discounts should be provided for high network people and senior citi#ens . 49 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES ANNE;URE 4.3 BUESTIONNAIRE 4.3 BUESTIONNAIRE ;. :ame UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU *. %ge *+/F+ F+/G+ G+V F. Gender .ale (emale G. .arital &tatus .arried &ingle . Income )evel 50 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES V-s.;+$ +++ -s.;+$ +++/-s.*+$ +++ W-s.*+$ +++ <. 1ow important is it for an employee to greet you with a smileN ,ery important &omewhat important :ot so important :ot at all important !. 1ow important is the si#e of che'ue book to youN ,ery important &omewhat important :ot so important :ot at all important 8. 1ow important are the bank timings according to youN 51 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES ,ery important &omewhat important :ot so important :ot at all important B. 1ow important are the S0-K "%)%:=0 =C--0:T %==KC:T facility provided by 1D(= to youN ,ery important &omewhat important :ot so important :ot at all important ;+. Lhat is your level of satisfaction with respect to the transaction timing of the bankN 1ighly satisfied &atisfied :eutral 52 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES Dissatisfied 1ighly dissatisfied ;;. Lhat is your level of satisfaction with respect to customer care measures undertaken by the bankN 1ighly satisfied &atisfied :eutral Dissatisfied 1ighly dissatisfied ;*. Lhat is your level of satisfaction with respect to the 'uality of overall service provided by the bankN 1ighly satisfied &atisfied :eutral Dissatisfied 53 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES 1ighly dissatisfied ;F. Lhat is your level of satisfaction with respect to special schemes offered by the bankN 1ighly satisfied &atisfied :eutral Dissatisfied 1ighly dissatisfied ;G. Lhat is your level of satisfaction with respect to the response time for grievance handlingN 1ighly satisfied &atisfied :eutral Dissatisfied 1ighly dissatisfied 54 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES ;. Lhat is your level of satisfaction with respect to the che'ue book facility provided by the bankN 1ighly satisfied &atisfied :eutral Dissatisfied 1ighly dissatisfied ;<. Lhat is your level of satisfaction with respect to fle>ibility of operationN 1ighly satisfied &atisfied :eutral Dissatisfied 1ighly dissatisfied
55 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES BIBLIOGRAPHY BOOKS AND MAGA0INES ;4 Tull &. Donald et al 1awkins I. Del //.arketing -esearch Measurement & Methods < th edition Published by %soke H. Ghosh $ Prentice/1all of India pvt. )td. *4 =ooper -. Donald et al &chindler &.Pamela R"usiness -esearch .ethod logy *++< edition Published by T%T% .cGraw 1I)) Publishing =ompany limited India Today "usiness world$ 0conomic Times$ "usiness world $ .oney regulator and "usiness )ine
NE)SPAPERS The Times of India The 0conomic Times "usiness &tandard
56 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES INTERNET www.hdfcbank.com www.google.com 57 RAMAIAH INSTITUTE OF MANAGEMENT STUDIES