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A Project Report ON: The Study of Service Quaity of HDFC Bank
A Project Report ON: The Study of Service Quaity of HDFC Bank
PROJECT REPORT
ON
SESSION 2014-2017
STUDENT DECLARATION
I Robin Handa bearing university roll number 5114VBFG430032 hereby declare that I have
done the project report on the topic ‘TO STUDY THE SERVICE QUALITY OF HDFC
BANK AT SOLAN’ which is submitted in partial fulfilment of requirement of the award of
degree of BACHELOR OF BUSINESS ADMINISTRATION of Himachal Pradesh
University Shimla, and the data that is included in it is original. The assistance and help that
received during the course of this study has been duly acknowledged. It is further, declare
that is an original piece of work and it is worthy of the consideration for the degree of BBA.
ACKNOWLEDGEMENT
This project report is the culmination of several weeks of efforts. It is the combination of
ideas, suggestions and contribution of many minds. It is with a deepest sense of gratitude that
I reiterate my indebtedness to my guide Mrs. KHUSHBOO GOYAL for her valuable
guidance, constant encouragement and constructive criticism during the course of my study.
INTRODUCTION OF THE TOPIC
The housing development finance corporation limited (HDFC) was almost the first to receive
an ‘in principle’ approval from the reserve bank of India (RBI) to set up a bank in the private
sector, as part of the RBI’s liberalisation of the Indian banking industry in 1994.the bank was
Incorporated in August 1994 in the name of ‘HDFC Bank Limited’, with its registered office
in Mumbai, India. HDFC Bank commenced operation as a Schedule Commercial Bank in
January 1995.
HDFC Bank comprise of a dynamic and enthusiastic team determined to accomplish the
vision of becoming a World-class Indian Bank. HDFC Bank’s business philosophy is based
on our four core values i.e.
1. Customer Focus
2. Operational Excellence
3. Product Leadership and
4. People
They believe that the ultimate identity and success of their bank will reside in the exceptional
quality of people and their extraordinary efforts. They are committed to;
1. Hiring
2. Developing
3. Motivating and
4. Retaining the best people in the industry.
BUSINESS FOCUS
HDFC Bank’s mission is to be a world class Indian bank. The objective is to built sound
customer franchises across distinct businesses so as to be the preferred provider of banking
services for target retail and wholesale customer segments, and to achieve healthy growth in
profitability, consistent with the bank’s appetite. The bank is committed to maintain the
highest level of ethical standards, professional integrity, corporate governance and regulatory
compliance. HDFC Bank’s business philosophy is based on four core values- operational
excellence, customer focus, product leadership and people.
MANAGEMENT
Mr. C.M. Vasusdev has been appointed as the chairman of the bank with effect from 6th July
2010 subject to the approval of the reserve bank of India and the shareholders. Mr. Vasudev
has been a director of the bank since October 2006. A retired IAS officer, Mr. Vasudev has
had an illustrious career in the civil services and has held several keys position in India and
overseas, including finance secretary, government of India, executive director, World Bank
and government nominee on the board of many companies in the financial sector.
The managing director, Mr. Aditya puri, has been a professional banker for over 25 years,
before joining HDFC Bank in 1994 was heading Citibank’s operation in Malaysia
The bank’s board of director is composed of eminent individuals with a wealth in experience
in public policy, administration, industry and commercial banking. Senior executives
representing HDFC are also on the board.
Senior banking professionals with substantial experience in India and abroad head various
businesses and functions and report to managing director. The bank believes that its people
are a significant competitive strength.
TECHNOLOGY
HDFC Bank operates in a highly automated environment in terms of information technology
and communication systems. All the bank’s branches have online connectivity, which enables
the bank to offer speedy funds transfer facilities to its customers. Multi branch access is also
provided to retail customer through the branch network and automated teller (ATMs).
The bank has made substantial efforts and investments in acquiring the best technology
available internationally, to build the infrastructure for a world class bank. The bank’s
business is supported by scalable and robust system which ensures that our clients always get
the first service we offer.
The bank has prioritised its engagement in technology and the internet as one of its key goal
and has already made significant progress in web-enabling its core business.
1. Operational Excellence
2. Customer Focus
3. Product Leadership
4. People
The objective of the HDFC Bank is to provide its target market customer a full range of
financial products and banking services, giving the customer a one step window for all
his/her requirements. The HDFC Bank plus and the investment advisory services programs
have been designed keeping in mind need of customer who seeks distinct financial solutions,
information and advice on various investment avenues.
BUSINESS
HDFC Banks offers a wide range of commercial transactional banking services and treasury
products to wholesale and retail customers. The bank has three key business segments.
WHOLESALE BANKING SERVICES- The bank’s target market ranges from large blue
ship manufacturing companies in the Indian corporate to small and mid-sized corporate and
anti-based businesses. For these customers, the bank provides a wide range of commercial
and transactional banking services, including working capital finance, trade services,
transactional services, cash management etc. The bank is also leading provider of structured
solution, which combine cash management services with vendor and distributor finance for
facilitating superior product delivery/service levels and strong customer orientation, the bank
has made significant inroads into the banking consortia of a number of leading Indian
corporate including multinationals, companies from the domestic business house and prime
public sector companies. It is recognised as a leading provider of cash management and
transactional banking solutions to corporate customer, mutual funds, stock exchange
members and banks.
BUSINESS STRATEGY
1. Increasing market share in India’s expanding banking
2. Delivering high quality customer services
3. Maintain current high standards for assets quality through disciplined credit risk
management
4. Develop innovative products and services that attract target customer and address
inefficiencies in the Indian financial sector.
DISTRIBUTION NETWORK
HDFC Bank is headquartered in Mumbai. The bank at present have a enviable network over
1229 branches spread over 444 cities across India. All branches is linked on an online real
time basis. Customers in over 120 locations are also serviced through telephone banking. The
bank’s expansion plans take into account the need to have a presence in all major industrial
and commercial centres where its corporate customers are located as well as the need to built
a strong retail customer base for both deposit and loan products. Being a clearing/settlement
bank to various leading stock exchange, the bank has branches in the centres where the
NSE/BSE has a strong and active member base.
The bank also has a network of about over 2526 networked ATMs across these cities.
Moreover, HDFC Bank’s ATM network can be accessed by all domestic and international
visa/master card, visa electron/maestro, plus/cirrus and American express credit/charge
cardholders.
PROMOTER
HDFC Bank’s premier housing finance company and enjoys an impeccable track record in
India as well as in international markets. Since its inception in 1977, the corporation has
maintained a consistent and healthy growth in its operations to remain a, market leader in
mortgagees. Its outstanding loan portfolio covers well over a million dwelling units. HDFC
has developed a significant expertise in retail mortgage loan to different market segments and
also has a large corporate client base for its housing related facilities. With its experience in
the financial franchise, HDFC was ideally positioned to promote a bank in the Indian
environment.
CSR activities
HDFC Bank has taken several steps as a part of their Corporate Social Responsibility. It has
collaborated with several NGOs to assist in its activities.
Sustainable Provide
Conducts training for occupational skills, credit
Livelihood empowerment to the
counselling, capacity building program, sustainable
rural section of the
country, especially livelihood initiative
women.
Financial literacy in
Financial 600 schools across Rural financial literacy programs under the aegis of
Literacy Andhra Pradesh and RBI.
Odisha.
Aimed at formal
training and ETASHA, support SGBS Trust, tied up with Hope
Training
development of Foundation
youth
Focused on
Partnered with Watershed Organisation Trust
Community sustainable
(WOTR), promote rain water harvesting, blood
Initiatives development with
donation campaigns
economic growth
QUALITY POLICY
1. SECURITY- The bank provides the long term financial security to their policy. The
bank does this by offering life insurance and pension products.
2. TRUST – The bank appreciates the trust places by their policy holder in the bank.
Hence, it will aim to manage their investment very carefully and live up to this trust.
3. INNOVATION – Recognizing the different needs of our customers, the bank offer a
range of innovative products to meet these needs.
4. INTEGRITY
5. CUSTOMER CENTRIC
7. TEAM WORK
Outcome quality refers to the customer assessment of the core service which is the prime
motivating factor for obtaining the services.
Interaction quality refers to the customer assessment of the service delivery process, which is
typically rendered via a physical interface between the service provider, in person, or via
technical equipments and the customers.
The physical service environment quality dimension refers to customer’s evaluation of any
tangible aspects associated with the facilities or equipments that the service provider in/with.
It includes, for example, the physical condition of an ATM machine.
RESPONSIVENESS
TANGIBILTY REALIBILITY
EMPATHY ASSURANCE
DIMENSIONS OF SERVICEQUALITY
1. RESPONSIVENESS- Customer expects that the bank must respond their inquiry
promptly. Responsiveness describes how often a bank voluntarily provides services
that are important to its customers. Researcher examining the responsiveness of
banking services has highlighted the importance of perceived service quality and
customer satisfaction.
2. TANGIBILITY- This dimension deals with modern looking equipments and visual
appealing part of banks.
4. ASSURANCE- Customer expects that the bank must be secured and the behaviour of
the employees must be encouraging.
RESEARCH OBJECTIVES
2. To find out the level of perception of the customers from the service quality offered
by the bank.
RESEARCH METHODOLOGY
DATA SOURCE
PRIMARY DATA-
The primary data was collected by means of a survey. Questionnaires were prepared and
customers of the banks at two branches were approached to fill up the questionnaires. The
questionnaire contains 20 questions which reflect on the type and quality of the service
provided by the bank to the customers. The response of the customers is recorded on a grade
scale of strongly disagree, disagree, uncertain, agree and strongly agree for each question.
The filled up information was later analyzed to obtain the required interpretation and the
findings.
SECONDARY DATA-
In order to have proper understanding of the service quality of the bank a depth study was
done from the various sources such as books, a lot of data also collected from the official
website of the bank and the articles from various search engines like Google, yahoo search
and answer.com.
RESEARCH DESIGN-
The research design is exploratory till identification of service quality parameters. Later it
becomes descriptive when it comes to evaluating customer perception of service quality of
the banks.
Descriptive research also known as statistical research describes data and characteristics
about the population or phenomenon being studied.
Descriptive research answer the question who, what, where, when and how.
Although the data description is actual, accurate and systematic, the research cannot describe
what caused a situation. Thus, descriptive research cannot be used to create a casual
relationship, where one variable affects another. In other words, descriptive research can be
said to have a low requirements for internal validity.
The description is used for frequencies, average and other statistical calculations. Often the
best approach prior to writing descriptive research is to conduct a survey investigation.
Qualitative research often the aim of description and researchers may follow-up with
examination of why the observation exists and what the implications of the findings are.
RESEARCH SAMPLE
SAMPLING PLAN-
Sample is not possible to study whole universe, it becomes necessary to take sample from the
universe to know about its characteristics.
1. The work is case of HDFC bank, one of the largest banks of Indian banking industry
together representing over 25 percent of the market space of Indian banking space.
The survey was conducted in the city of soaln with two branches of HDFC Bank, with
50 customers as respondent.
2. Disagree
4. Strongly agree
Likert scaling is a bipolar scaling method, measuring either positive or negative response to a
statement. The questionnaires contain two parts. The first part consists of question concerning
the demographic information of the respondent such as the name, age, education qualification
and income. The second part consisting of 18 questions exploring the respondent’s perception
about the service quality of the HDFC Bank. For evaluation of service quality of HDFC Bank
service quality dimension of reliability, assurance, tangibility, empathy and responsiveness is
used in order to evaluate the actual service quality of HDFC Bank.
2. The study can also not be recognized for public and private sector banks of the
country.
3. Respondent can give biased answers for the required data. Some of the respondent did
not like to respond.
4. Respondent try to escape some statement by simply ‘neither agree nor disagree’ to
most of the statements. This was one of the most important limitations faced, as it was
difficult to analyze and come at a right conclusion.
5. In this study, included 50 customers of bank because of time limit.