CHAPTER -1

INTRODUCTION

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to
receive an ‘in principle’ approval from the Reserve Bank of India (RBI) to set up a bank in the
private sector, as part of RBI’s liberalization 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 operations as a Scheduled Commercial Bank in
January 1995.HDFC bank has a network of over 684 branches spread over 316 cities across
India. All branches are linked on an online real-time basis. Customers in over 120 locations are
serviced through telephone banking. The bank also has a network of about over 1605
networked ATMs across these cities.

HDFC Bank’s mission is to be a World Class Indian Bank. The objective is to build 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 risk 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 five core values: Operational
Excellence, Customer Focus, Product Leadership, People and Sustainability.

Saving, Fixed deposits, Current and saving Account, Demat Accounts etc.

A part from the usual facilities, you get a free ATM Card, Inter branch banking, Net Banking,
Bill Pay, Phone banking, Debit Card and Mobile Banking, among others.

A preferential Saving Account where you are assigned a dedicated Relationship, who is your
one – point contact. You also get privilege like fee waivers, enhanced ATM withdrawal limit,
privileges locker allotment, fee Demat Account and lower interest rates on loans, to name a
few.

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 Sweep-In Account
A fixed deposit liked to your saving Account. So, even if you’re saving Account runs a bit
short, you can issue a cheque (or use your ATM Card). The money is automatically swept
in form your fixed deposit into your Savings Account.

1) Super Saver Account: It gives you an overdraft facility up to 75% of your Fixed Deposit.
In an emergency, you can across your funds while your Fixed Deposit continues to earn
high interest.
2) HDFC Bank Plus: A part from regular and premium Current accounts we also have
HDFC Bank Plus, a current and then some more. You can transfer up to Rs.50 Lakh per
month at no extra charge, between the four metros. Get cash delivery/ pickup unto Rs.
25,000/-, home delivery of demand Draft, at- per cheque, outstation cheque clearance
facility, etc.
3) Demat Account: Conduct hassle – free transaction on your shares. You can also access
your Demat Account on the Internet.
4) International Debit Card: Through ATM Card you can shop in over 140 countries. You
can spend in any currency, and pay in Rupees.
5) Current Account: Get a personalized cheque book, monthly account statement; inter
branch banking and much more.
6) Mutual Funds: A part from a wide choice of mutual funds to suits your individual needs,
you benefits from expert advice on choosing the right finds based on in-depth market
analysis.
7) International Credit Card: Get on option of Silver, Gold or health Plus Credit card,
accepted worldwide from a world class Bank. If you have outstanding balance on your
other credit card, you can transfer that balance to this card at a lower interest etc.
8) NRI Services: A comprehensive range, backed by unmatched features and world-class
services, ensures NRIs all the banking support they need.
9) Forex Facilities: Avail of foreign currency, traveler’s cheques, and foreign exchange
demand draft, to meet your travel needs.

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10) Insurance: HDFC bank now brings you Life insurance and Pension Solution like Risk
Cover Scheme, Children’s Plan and Personal Plan from HDFC Standard Life Insurance
Co.Ltd.

PERSONAL BANKING

1) ACCOUNT & DEPOSITS SERVICE: Banking should be effortless. With HDFC Bank,
the efforts are rewarding. No matter what a customer's need and occupational status, we
have a range of solutions that are second to none. Whether you're employed in a company
and need a simple Savings account or run your own business and require a robust banking
partner, HDFC Bank not only has the perfect solution for you, but also can recommend
products that can augment your planning for the future.

It includes these services: -

a) Saving accounts.
b) Current accounts.
c) Fix deposits.
d) Demat account.
e) Safe deposits lockers.

2) Savings Accounts: These accounts are primarily meant to inculcate a sense of saving for the
future, accumulating funds over a period of time. Whatever person’s occupation, bank have
confident that person will find the perfect banking solution. There some saving accounts like: -

3) Regular Saving Account: An easy-to-operate savings account that allows you to issue
cheques, draw Demand Drafts and withdraw cash. Check up on your balances from the
comfort of your home or office through Net Banking, Phone Banking and Mobile Banking. If
you need money urgently then you can take money from the ATM machine. There are 1977
ATM centers across the country.

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4) Saving plus Account: Introducing the best banking option for you with HDFC Bank
Savings plus Account. Now you can get access to some of the finest banking facilities with
HDFC Bank's Savings plus Account. All you have to do is maintain an Average Quarterly
Balance of Rs. 10,000/-.

5) Saving Max Account: Welcome to a world of convenience. Presenting Savings Max

account, loaded with maximum benefits to make your banking experience a pleasure. By
maintaining an average quarterly balance of just Rs. 25,000/- you get a host of premium
services from HDFC Bank absolutely free.

6) Senior Citizen Account: HDFC Bank appreciates your needs and endeavors, which is why,
they present an account especially dedicated to customer, which like a dutiful child will help
you fulfill your needs in the best manner possible.

7) Salary Accounts: In this account customer can get salary from where he/she doing such job
and organization or company at where the customer of the bank in doing job deposit their
salary in to the salary account a person can get salary.

There are various kinds of saving accounts in the HDFC Bank like: -

a. Pay roll account.

b. Classic salary account.

c. Regular salary account.

d. Premium salary account.

e. Defense salary account.

f. No frills salary account.

g. Reimbursement salary account.

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8) Kid’s advantage account: Start saving for your child today and secure his/her future a
sentence tells by the Hdfc bank. Open a Savings Account and transfer money every month into
customer’s Kids Advantage Account and watch the savings grow as customer’s child grows.
The accumulated savings in the Kids Advantage Account can over the years help in meeting
customer child's needs.

9) Current accounts: HDFC Bank Current Account gives the power of inter-city banking with
a single account and access to more than cities. From special cheques that get treated at par
with local ones in any city where branch, faster collection of outstation cheques (payable at
branch locations), free account to account funds transfer between HDFC Bank accounts to Free
inter-city clearing of up to 100 lakhs per month, bank’s priority services have become the
benchmark for banking efficiency.

Now, with an HDFC Bank Current Account, experience the freedom of multi-city banking.
Person can have the power of multi-location access to his account from any of our 761
branches in 327 cities. Not only that, he can do most of his banking transactions from the
comfort of his office or home without stepping out.

There are various kinds of current account in this bank like: -

1. Plus current account: HDFC Bank plus Current Account gives the power of inter-city
banking with a single account and access to more than cities. Plus Current Account requires
maintaining an average quarterly balance of Rs. 100,000.

2. Trade current account: In today's changing business requirements, you need to transfer
funds across cities, and time is of the essence. HDFC Bank Trade Current Account gives power
of inter-city banking with a single account.

From special cheques that get treated at par with local ones in any city where bank have a
branch, to free account to account funds transfer between HDFC Bank accounts, to free inter-
city clearing of up to 50 lacks per month, bank’s priority services have become the benchmark
for banking efficiency. Trade Current Account requires maintaining an average quarterly
balance of Rs. 40,000.

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3. Premium current account: Business needs a partner who can manage finances while
concentrate on growing business. Form this account customer can avail benefits of inter-city
banking account that requires an average quarterly balance of only Rs. 25,000, offers Payable-
At-Par cheque book facility & FREE inter-city clearing transactions across our network up to
Rs.25 Lacs per month. A Current Account with the benefits of accessing account from a large
network of branches, and through direct access channels - the phone, mobile, Internet and
through the ATM.

4. Regular current account: A Current account is ideal for carrying out day-to-day business
transactions. With the HDFC Bank Regular Current Account, customer can access account
anytime, anywhere, pay using payable at par cheques or deposit cheque at any HDFC bank
branch. It also facilitates FREE NEFT transactions & FREE RTGS collections for faster
collections in account. Regular Current Account requires maintaining an average quarterly
balance of only Rs. 10,000.With a vast network of branches in cities all over the country, and
access to a multitude of ATM's, customer can keep track of all transactions anytime.

5. Flexi current account: Tired of static transaction limits during peak seasons? HDFC Bank
Flexi Current Account is the answer to changing banking needs during peak seasons.

With HDFC Bank Flexi Current Account Cash Deposit and Anywhere Transaction limits are a
multiple of the balance you maintain in Current Account. So, during peak seasons, customer
get the benefit of higher transaction limits due to the higher average balances maintained in
account. What’s more, during lean seasons, person need not worry about maintaining huge
balances to enjoy high transaction limits, which person anyway may not need. Flexi Current
Account requires maintaining a minimum Average Monthly Balance (AMB) of just Rs.
75,000.

6. Apex current account: The top position is always the desirable position. With the Apex
current account, take business to a new high. On maintaining an average quarterly balance of
Rs. 10 lacs, this account makes sure person make the most of every business opportunities
coming his way. Unlimited, free, anywhere Banking experience at the APEX is reserved for
person who joints this.

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7. Max current account: Maximum benefits and minimum hassles for customer with Max
Current Account with a Rs. 5 lakhs average quarterly balance requirement, bank present to
world of privileges that helps business expand and grow. Features like maximum free
transaction limits including other beneficial features on this current account truly enhances
business potential to the Maximum.

8. Fix Deposits: Long-term investments form the chunk of everybody's future plans. An
alternative to simply applying for loans, fixed deposits allow to borrow from own funds for a
limited period, thus fulfilling needs as well as keeping savings secure.

a. Regular fix deposit: As per the rules and regulation of the bank a person can deposit their
money in to a fix deposit in the bank and can get the benefits of these facilities.

b. Five year tax saving fix deposit: In 2006, it was announced a. for the first time that Bank
fixed deposits booked by an Individual/HUF for 5 years & up to Rs. 1,00,000/- will be allowed
exemption under Sec 80C of the Income Tax Act,1961 subject to necessary declarations taken
from the Customer.

c. Super saver facility: Customer can enjoy a high rate of interest along with the liquidity of a
Savings Account by opting for a Super Saver Facility on his or her savings account. Avail of
an overdraft facility of up to 75% of the value of his or her Fixed Deposit.

d. Sweep-in facility: Do you wish to avoid taking overdrafts, and still take advantage of your
Fixed Deposits Then what you need is a Sweep-In Facility on savings account. Link Fixed
Deposit to Savings or Current Account and use it to fall back on in case of emergencies. A
deficit in Savings or Current Account is taken care of by using up an exact value from Fixed
Deposit. Since deposits are broken down in units of Re 1/-, customer will lose interest only for
the actual amount that has been withdrawn.

9. Demat Account: Nowadays share market is becoming is the main occupation of the person.
So to avoid faulty processes Demat account is really most important for the share market and
for the safety of shares it is most important.

HDFC BANK is one of the leading Depository Participant (DP) in the country with over 8
Lakh Demat accounts.

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 HDFC Bank Demat services offers a secure and convenient way to keep track of securities and
investments, over a period of time, without the hassle of handling physical documents that get
mutilated or lost in transit.

HDFC BANK is Depository participant both with -National Securities Depositories Limited
(NSDL) and Central Depository Services Limited (CDSL).

Safe Deposit Lockers

A Safe Deposit Locker with HDFC Bank is the solution to person’s fear. Located at select
branches in cities all over the country, bank’s lockers ensure the safe keeping of valuables.

Eligibility

An individual (not minor), firms, limited company, associations, clubs, trusts, societies, etc
may hire a locker.

Advantages of safe deposit locker in HDFC bank

a. Wide Availability.
b. Lockers available in various sizes. i.e. Small, Medium, Large and Extra Large with
varying rents.
c. Lockers are rented out for a minimum period of one year. Rent is payable in advance.
d. No deposits are required to avail a locker. Just open an account and get the locker facility.
e. There is a nominal annual charge, which depends on the size of the locker and the centre
in which the branch is located.

Terms & Conditions

a) For obtaining a Locker at HDFC Bank you must be an account holder with Bank.
b) Lockers can be allotted individually as well as jointly.
c) The Locker holder is permitted to add or delete names from the list of persons who can operate
the Locker and can have access to it.
d) Loss of Key is to be immediately informed to the concerned Branch.

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 SERVICES PROVIDED BY THE BANK
a) Phone Banking
24-hour automated banking services with 39 Phone Banking Numbers available.

b) ATM 24 Hour Banking

Apart from routine transactions, you can also transfer funds, at any of our ATMs across the
country all year round.

c) Intercity / Inter Branch Banking

Access your account from any of our branches in cities.

d) Mobile Banking
Access your Bank Account on your Mobile Phone screen at no airtime cost. Use SMS
technology to conduct your banking transactions from your cell phone

e) Bill Pay
Pay your telephone, electricity and mobile phone bill through our ATMs, Internet, Phone or
Mobile Phone. No more standing in long queues or writing cheques.

Objectives of the study

To identify the satisfactional level of customers of Hdfc bank.

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 CHAPTER-2

COMPANY PROFILE

Background

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to
receive an ‘in principle’ approval from the Reserve Bank of India (RBI) to set up a bank in the
private sector, as part of RBI’s liberalization 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 operations as a Scheduled
Commercial Bank in January 1995

HDFC bank has a network of over 684 branches spread over 316 cities across India. All
branches are linked on an online real-time basis. Customers in over 120 locations are serviced
through telephone banking. The bank also has a network of about over 1605 networked ATMs
across these cities.

PROMOTER
HDFC is India’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 the market leader in
mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has
developed significant expertise in retail mortgage loans to different market segments and also
has a large corporate client base for its housing related credit facilities. With its experience in
the financial markets, strong market reputation, large shareholder base and unique consumer
franchise, HDFC was ideally positioned to promote a bank in the Indian environment.

BUSINESS FOCUS
HDFC Bank’s mission is to be a World Class Indian Bank. The objective is to build 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 risk appetite. The bank is committed to maintain the

10
highest level of ethical standards, professional integrity, corporate governance and regulatory
compliance. HDFC Bank’s business philosophy is based on five core values: Operational
Excellence, Customer Focus, Product Leadership, People and Sustainability.

CAPITAL STRUCTURE
March, 2015 the authorized share capital of the Bank is Rs. 550 crore. The paid-up share
capital of the Bank as on the said date is Rs 501,29,90,634/- ( 2506495317 ) equity shares of
Rs. 2/- each). The HDFC Group holds 21.67 % of the Bank's equity and about 18.87 % of the
equity is held by the ADS / GDR Depositories (in respect of the bank's American Depository
Shares (ADS) and Global Depository Receipts (GDR) Issues). 32.57 % of the equity is held
by Foreign Institutional Investors (FIIs) and the Bank has 4,41,457 shareholders.
The shares are listed on the Bombay Stock Exchange Limited and the National Stock
Exchange of India Limited. The Bank's American Depository Shares (ADS) are listed on the
New York Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's Global
Depository Receipts (GDRs) are listed on Luxembourg Stock Exchange under ISIN No
US40415F2002.
AMALGAMATION OF TIMES BANK & CENTURION BANK OF PUNJAB WITH
HDFC
On May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC Bank was
formally approved by Reserve Bank of India to complete the statutory and regulatory
approval. The amalgamation added significant value to HDFC Bank in terms of increased
branch network, geographic reach, and customer base, and a bigger pool of skilled manpower.
DISTRIBUTION NETWORK
HDFC Bank is headquartered in Mumbai. As of March 31, 2015, the Bank’s distribution
network was at 4,014 branches in 2,464 cities. All branches are linked on an online real-time
basis Customers. The Bank’s expansion plans take into account the need to have a presence in
all major 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. Being a
clearing / settlement bank to various leading stock exchanges, the Bank has branches in
centers where the NSE / BSE have a strong and active member base.
The Bank also has a network of 11,766 ATMs across India. HDFC Bank’s ATM network can

11
be accessed by all domestic and international Visa / MasterCard, Visa Electron / Maestro,
Plus / Cirrus and American Express Credit / Charge cardholders.
MANAGEMENT
Mrs. Shyamala Gopinath holds a Master’s Degree in Commerce and is a CAIIB. Mrs.
Gopinath has 39 years of experience in financial sector policy formulation in different
capacities at RBI. As Deputy Governor of RBI for seven years and member of the Board. Mrs.
Gopinath had been guiding and influencing the national policies in the diverse areas of
financial sector regulation and supervision, development and regulation of financial markets,
capital account management, management of government borrowings, Forex reserves
management and payment and settlement systems. The Managing Director, Mr. Aditya Puri,
has been a professional banker for over 25 years and before joining HDFC Bank in 1994 was
heading Citibank’s operations in Malaysia. The Bank's Board of Directors is composed of
eminent individuals with a wealth of experience in public policy, administration, industry and
commercial banking. Senior executives representing HDFC are also on the Board.
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 customers through the branch network and Automated Teller Machines
(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. In terms of core
banking software, the Corporate Banking business is supported by Flex cube, while the Retail
Banking business by Fin ware, both from I-flex Solutions Ltd. The systems are open, scale
able and web-enabled.
The Bank has prioritized its engagement in technology and the internet as one of its key goals
and has already made significant progress in web-enabling its core businesses. In each of its
businesses, the Bank has succeeded in leveraging its market position, expertise and
technology to create a competitive advantage and build market share.

Business Profile

12
HDFC Bank caters to a wide range of banking services covering commercial and investment
banking on the wholesale side and transactional / branch banking on the retail side. The bank
has three key business segments:

Wholesale Banking

The Bank’s target market is primarily large, blue-chip manufacturing companies in the Indian
corporate sector and to a lesser extent, small & mid-sized corporates and Agri-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 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. Based on its 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 corporates including
multinationals, companies from the domestic business houses and prime public sector
companies. It is recognized as a leading provider of cash management and transactional
banking solutions to corporate customers, mutual funds, stock exchange members and banks

Retail Banking

The objective of the Retail Bank 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 his/her
banking requirements. The products are backed by world-class service and delivered to
customers through the growing branch network, as well as through alternative delivery
channels like ATMs, Phone Banking, Net Banking and Mobile Banking.
The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and
the Investment Advisory Services programs have been designed keeping in mind needs of
customers who seek distinct financial solutions, information and advice on various investment
avenues. The Bank also has a wide array of retail loan products including Auto Loans, Loans
against marketable securities, Personal Loans and Loans for Two-wheelers. It is also a leading

13
provider of Depository Participant (DP) services for retail customers, providing customers the
facility to hold their investments in electronic form.
HDFC Bank was the first bank in India to launch an International Debit Card in association
with VISA (VISA Electron) and issues the MasterCard Maestro debit card as well. The Bank
launched its credit card business in late 2001. By March 2015, the bank had a total card base
(debit and credit cards) of over 25 million. The Bank is also one of the leading players in the
“merchant acquiring” business with over 235,000 Point-of-sale (POS) terminals for debit /
credit cards acceptance at merchant establishments. The Bank is well positioned as a leader in
various net based B2C opportunities including a wide range of internet banking services for
Fixed Deposits, Loans, Bill Payments, etc.

SWOT ANALAYSIS OF HDFC BANK

STRENGTH

a. Right strategy for the right products.

b. Superior customer service vs. competitors.
c. Great Brand Image.
d. Products have required accreditations.
e. High degree of customer satisfaction.
f. Good place to work
g. Lower response time with efficient and effective service.
h. Dedicated workforce aiming at making a long-term career in the field

WEAKNESSES
a. Some gaps in range for certain sectors.
b. Customer service staff need training.
c. Processes and systems, etc
d. Management cover insufficient.
e. Sectoral growth is constrained by low unemployment levels and competition for staff.

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OPPORTUNITIES

a. Profit margins will be good.

b. Could extend to overseas broadly.
c. New specialist applications.
d. Could seek better customer deals.
e. Fast-track career development opportunities on an industry-wide basis.
f. An applied research centre to create opportunities for developing techniques to provide
added-value services.

THREATS

a. Very high competition prevailing in the industry.

b. Vulnerable to reactive
c. Legislation could impact.
d. Lack of infrastructure in rural areas could constrain investment.

15
 CHAPTER 3

LITERATURE REVIEW

Gokilamani and Natarajan (2014)

In their study opine that customers of Indian commercial banks are positively responding to
retail banking. It was important for banks to focus on service quality for strengthening their
competitive edge and to allocate the limited resources to serve the personal banking division.
They further viewed that the success of a retail bank will depend on product innovation,
technological developments and strategies to retain the retail customers.

Irfana and Raghurama (2013)

This study tries to analyze the customer behavior towards e-banking services. It was found
that most of the respondents who used e-banking facility were in the age group of 30-40 years.
Also, majority of the respondents used e-banking facility for bill payment, sales, account
transfer, purchases, updating of savings account and online bank statement status.
Respondents followed basic safety measures while e-banking. Online safety measures are not
followed by majority of the respondents as they are not aware of them. Offline safety
measures are followed by the respondents to some extent. Over all safety measures followed
by the respondents while e-banking is very low. Majority of the respondents are not aware of
the frauds in e-banking and the security procurable and available to control internet warnings,
dangers and challenges.

Nishit (2012)

In her comparative study on private sector banks in India analyzed the performance of six
major private sector banks during the period 2008- 09 to 2009-10. She found that profit
maximisation and wealth maximisation are the main concern for banks. The private sector
banks play an important role in the economic development of the country. The study also

16
contains the profitability analysis of the sample banks which can be used as a basis for
investment decision by the investors banks.

Aashish Shashikant Jani (2012) in his comparative study on the use of technology in retail
banking among public and private sector banks argues that channels are preferred by
customers because of cost and time utility. Her suggestion is that in this era of information
technology, the public sector banks have to introduce more technology based products and
services to compete with other bank groups especially new generation.

Kalpesh (2011) in his comparative study of financial performance of Indian banks points out
that efficiency and stability of the banking system in India is impacted by the reform
measures. The profitability and liquidity of both public and private sector banks have also
improved a lot.

Ganguli and Roy (2011) studied the “Factors affecting customer satisfaction in the Indian
retail banking sector”. The factors affecting customer satisfaction were identified through
factor analysis. Their study also shows that the important factors affecting customer
satisfaction are customer service and technology usage, easiness and reliability.

Karim (2010) According to the study, Indian banking sector had to welcome the
transformation in order to match with the market that resulted from the acceptance of financial
liberalization by the Indian Government. After the transformation, banks have been very
much progressive to come up with those products that have a better match with customer
demands and they have been extremely successful in meeting up the customer needs. This fact
is evident from the continuous injection of products in the financial sphere of Indian economy
and accurateness in giving the customers what they want.” Another study depicts that the
reforms in banking sector have brought about perceptible improvement in the overall
performance of banks. Indian banking is now operating in a more competitive setting with
induction of new banks, both Indian and foreign who have brought in new work technology,
specialized expertise and a variety of new financing Instruments. The authorities have move
towards simplifying and deregulating the complex administered system of interest rates and
have brought rates into closer alignment with underlying market forces. There is greater

17
transparency and consistency in banks’ account. The capital status of banks has also got better
by accessing the capital market. Banks are attuning themselves to be market.

Rathamani.P (2002) in his study on “customer satisfaction towards private sector banks”
determines the changing dynamics of banking industry driven by the growth of increase in
personal consumption of customer on account rising income and increasing family incomes

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 CHAPTER-4

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

Research methodology is a process used to collect information and data for the purpose of
making business decisions. The methodology may include publication research, interviews,
surveys and other research techniques, and could include both present and historical
information.

RESEARCH DESIGN:

A research design is a systematic approach that a researcher uses to conduct a scientific study.
The function of research design is to provide for collection of relevant evidence with minimal
expenditure of time effort and money. The research was overall synchronization of identified
components and data resulting in a plausible outcome. To conclusively come up with an
authentic and accurate result, the research design follows a strategic methodology, in line with
the type of research chosen.
This study is a descriptive research that describes characteristics of a population or
phenomenon.

SAMPLING PROCEDURE

The sample was selected from the customers of Hdfc Bank. It was collected through mails and
personal visits to the known persons, by formal and informal talks and through filling up the
questionnaire prepared.

RESEARCH AREA AND SAMPLE SIZE: Basti (Uttar Pradesh)

The sample of the study consisted of 100 Hdfc Bank customers. Target population was the
city of Basti (Uttar Pradesh).

Sampling Method: The research is based on convenient sampling method. Convenience

sampling (also known as availability sampling) is a specific type of non-probability sampling

19
method that relies on data collection from population members who are conveniently
available to participate in study.

SOURCES OF DATA COLLECTION:

There are two sources of data collection i.e. Primary and Secondary. For this study both the
sources have been used.

(1) Primary sources:- It is the first hand information collected directly from the respondents.
A well structured questionnaire was used to collect the first hand data. Questionnaire is the
combination of a number of questions, which are of two types such as-
Open-ended: In it the respondent gives answers in descriptive way.

Close ended: In it the respondent gives answers in Yes or No types.

(2) Secondary source: Secondary data are the data which are available in the form of fact and figures.
The sources of secondary data were past studies, internet, books etc.

DATA ANALYSIS: The collected data is analyzed with the help of Percentile method .For
the analysis purpose Ms Excel has been used and the analyzed data is presented via tables and
charts.

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 Chapter 5

DATA ANALYSIS AND INTERPRETATION

1. What is your Occupation?

Table No 1.1 represents the occupation of the respondents.

Occupation No. of Respondent % of Respondent

Profession 32 32%
Self Employed 20 20%
Salary 38 38%
Other 10 10%
Total 100 100%

Figure No.1.2: Represents the occupation of the respondents

Response
10%
PROFESSION
32% SELF EMPLOYED
38% SALARY
20% OTHER

Interpretation: According to Table No. 1.1 analysis there are 38% persons from
salaried group 32% from professional, 20% are of self employed group and 10% are
associated with any other occupation.

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2. What is the reason for selecting the particular bank?

Table No. 2.1: represents reasons for selecting the particular bank by respondent.
Reasons No. of Respondent % of Respondent

Goodwill 44 44%

Services 36 36%

Nearness 20 20%

Total 100 100%

Figure No. 2.2: Represents the reasons for selecting the particular bank by respondent.

Response

20% Goodwill
Services
44%
Nearness

36%

Interpretation:
According to Table no. 2, 44% choose their bank due to its goodwill, 36% due to its
services and 20% are for nearness.

22
3. Which type of Account you Operate?

Table No. 3.1: Represents type of account respondent operates.

TYPE No. of Respondent % of Respondent

Current Account 38 38%

Saving Account 62 62%

Total 100 100%

Figure No. 3.2: Represents type of account respondent operates.

Resoponse

Current A/C
38% Saving A/C

62%

Interpretation:

According to Table No. 3.1 analysis 62% persons are operating saving account and
38% are operating current account.

23
 4. Are you satisfied with your Bank services?

Table No. 4.1: Represents respondent who are satisfied or unsatisfied with Bank services.

Rating Strongly Satisfied Neutral Unsatisfied Strongly Total

Satisfied Unsatisfied
No. of 16 25 18 29 12 100
Respondent

% of 16% 25% 18% 29% 12% 100%

Respondent

Figure No.: 4.2 Represents respondent who are satisfied or unsatisfied with Bank services

Response

12% 16%
Strongly Satisfied
Satisfied
Neutral
29%
25%
Unsatisfied
Strongly Unsatisfied

18%

Interpretations:
According to Table No.4.1 analysis 16%people are strongly satisfied 25% people are satisfied
29% are unsatisfied 12 % are strongly unsatisfied and 18% people are neither satisfied nor
unsatisfied with bank services.

24
5. The bank always provides the services at the time it promise to do so?

Table No 5.1: Represents the respondent who are agree or disagree with its timely service.

Rating Strongly Agreed Neutral Disagreed Strongly Total

Agreed Disagreed
No. of 25 20 11 10 34 100
Respondent
% of 25% 20% 11% 10% 34% 100%
Respondent

Figure No. 5.2: Represents the respondent who agree or disagree with its timely Service.

Response

Strongly Agreed
25% Agreed
34%
Neutral
20% Disagreed
10%
11% Strongly Disagreed

Interpretation:

According to Figure No 5 analysis 25% people strongly agreed with the fact that bank provides
timely services as it promises 20% people agreed 11% people were neutral 10% people disagreed
and rest 34% people strongly disagreed.

25
6. Employees of the bank are consistently courteous with you?

Table No .6.1: Represents the employee’s courtesy towards customers.

Rating Strongly Agreed Neutral Disagreed Strongly total

Agreed Disagreed
No. of 40 38 22 0 0 100
Respondent
% of 40% 38% 22% 0 0 100%
Respondent

Figure No. 6.2: Represents the employee’s courtesy towards customers.

Response

STRONGLY AGREED
22%
AGREED
40%
NEUTRAL
DISAGREED
38%
STRONGLY DISAGREED

Interpretation:

According to Table No 6.2 analysis 40% people strongly agreed with the fact that employee is
consistently courteous with customers 38% people agreed and rest 22% people were neutral.

26
7. When you have an account related problem, the bank shows a sincere interest in
solving it?

Table No. 7.1: Represents the level at which bank shows a sincere interest in solving customer
problems.

Rating Strongly Agreed Neutral Disagreed Strongly Total

Agreed Disagreed
No. of 20 25 20 20 15 100
Respondent
% of 20% 25% 20% 20% 15% 100%
Respondent

Figure No. 7.2: Represents the level at which bank shows a sincere interest in solving
customer problems.

RESPONSE

STRONGLY AGREED
15% 20%
AGREED
20% NEUTRAL
25% DISAGREED
20%
STRONGLY DISAGREED

Interpretation:

According to Table No 7.1 analysis 20% people strongly agreed that bank shows a
sincere interest in solving customers account related problem timely promises 25%
people agreed 20% people were neutral 20% people disagreed and rest 15% people

27
8. Banks sends you alert on your mobile for your transaction?

Table No.8.1 Represents alert ratio that bank sends to customers

Rating Strongly Agreed Neutral Disagreed Strongly Total

Agreed Disagreed
No. of 40 45 15 0 0 100
Respondent
% of 40% 45% 15% 0 0 100%
Respondent

Figure No. 8.2 Represents alert ratio that bank sends to customers

RESPONSE
0 0%

15% STRONGLY AGREED

40% AGREED
NEUTRAL
DISAGREED
45%
STRONGLY DISAGREED

Interpretation:

According to Table No 8.1 analysis 40% people strongly agreed that bank sends alert on
mobile to customers for their transaction 45% people agreed 15% people were neutral people.

28
9. Are you satisfied with interest rates provided by your bank?

Table No. 9.1 Represents interest rate provided by the bank.

Rating Strongly Agreed Neutral Disagreed Strongly Total

Agreed Disagreed
No. of 15 22 10 33 20 100
Respondent
% of 15% 22% 10% 33% 20% 100%
Respondent

Figure No. 9.2: Represents interest rate provided by the bank.

RESPONSE

STRONGLY SATISFIED
20% 15%
SATISFIED

22% NEUTRAL

33% UNSATISFIED
STRONGLY SATISFIED
10%

Interpretation:

According to Table No.9.1 analysis 15%people are strongly satisfied 22% people are satisfied
30% are unsatisfied 20 % are strongly unsatisfied and 10% people are neither satisfied nor
unsatisfied.

29
10. Is your bank charges any additional service charges to your account?

Table No. 10.1: Represents ratio of customer who agree or disagree with fact that bank charges
any additional service on their account.

Rating Strongly Agreed Neutral Disagreed Strongly Total

Agreed Disagreed

No. of 27 25 13 25 10 100
Respondent

% of 27% 25% 13% 25% 10 100%

Respondent

Figure No. 10.2: Represents ratio of customer who agree or disagree with fact that bank
charges any additional service on their account.

RESPONSE

10% STRONGLY AGREED

27%
AGREED
25% NEUTRAL
DISAGREED
13% 25%
STRONGLY DISAGREED

Interpretation:
According to Table No 10.1 analysis 27% people strongly agreed with the fact that bank
charges additional service charges to their account 25% people agreed 13% people were
neutral 25% people disagreed and rest 10% strongly Disagreed.

30
11. Bank provides additional services to your account (Bills/installment)?

Table No. 11.1: Presents bank ratio of respondent who agree with fact that Bank provides
additional services to their account.

Rating Strongly Satisfied Neutral Unsatisfied Strongly Total

Satisfied Unsatisfied

No. of 30 40 20 10 0 100
Respondent

% of 30% 40% 20% 10% 0 100%

Respondent

Figure No. 11.2: Presents bank ratio of respondent who agree with fact that Bank
provides additional services to their account

RESPONSE
0
SATISFIED
10%
30% UNSATISFIED
20%
NEUTRAL
UNSATISFIED
40% STRONGLY UNSATISFIED

Interpretation:
According to Table No.11.1 analysis 30% people are strongly satisfied 40% people are
satisfied 100% are unsatisfied and 10% people are neither satisfied nor unsatisfied with the
fact that bank provide additional service to their account.

31
 12. Bank provides you necessary instruction manual for financial services?

Table No. 12.1 Represents ratio of respondent who agree or disagree with fact that bank
provides necessary instruction manual for financial services.

Rating Strongly Agreed Neutral Disagreed Strongly Total

Agreed Disagreed
No. of 8 32 30 10 20 100
Respondent
% of 8% 32% 30% 10% 20% 100%
Respondent

Figure No 12.2 Represents ratio of respondent who agree or disagree with fact that bank
provides necessary instruction manual for financial services.

RESPONSE
8% STRONGLY AGREED
20%
AGREED
10% 32% NEUTRAL
DISAGREED
30% STRONGLY DISAGREED

Interpretation: According to Table No 12.1 analysis 8% people strongly agreed

with the fact that bank provides necessary instruction manual for financial services 32%
people agreed 30% people were neutral 10% people disagreed and rest 20% strongly
Disagreed.

32
13. You wish to change your bank in future due to better services?

Table No. 13.1 Represents Ratio of respondent who wish to change or do not change
their account.

No. of Respondent % of Respondent

Yes 45 45%

No 55 55%

Total 100 100%

Figure No. 13.2: Represents Ratio of respondent who wish to change their account

RESPONSE
YES
NO
45%
55%

Interpretation:
According to Figure No 13.1 analysis 45% of people wish to change their account and
rest 55% do not wish to change their account.

33
 CHAPTER 6

FINDINGS

1) The study highlighted that goodwill plays an important role in acquiring customers for
Hdfc bank; most of the people i.e., 44% chose HDFC bank because of its goodwill in
the market.
2) The study highlighted that almost 25% of the customers of Hdfc bank are satisfied. It
all depends on customer interaction with the branch staff and the attention given to
them and also how fast the problems are being resolved.
3) The study highlighted that the time management of HDFC is not satisfactory for the
customers. .About 34% customers are not satisfied Turnaround time of hdfc bank is
less as compared to other banks, this is the reason customers expect instant resolution
from the bank.
4) According to the study customers feel that employees are courteous with them,abput
40% customers agrees with this fact.
5) The study highlighted that generally the Hdfc bank is satisfied with the problem
solving capacity of the employees of bank. About 25% customers agreed to this fact.
6) According to the study 20% customers are satisfied with the timely service of Hdfc
bank.
7) The study highlighted the 22% of customer feels that their banks provide them a
minimum interest.
8) The study highlighted that 25% of Customers are in the favor that their bank collects
additional charges.
9) The study highlighted that 32% of customers agreed that bank provides necessary
instruction for financial services.
10) The study highlighted that about 32% customers of Hdfc bank were satisfied with its
services and do not wish to change their bank.

34
 CONCLUSION

The main objective of this study was to identify the satisfactional level of customers of
Hdfc Bank. On the basis of findings, the study concludes that Service quality of Hdfc bank
attracts customers towards itself here the goodwill plays an important role in acquiring
customers for Hdfc bank. The reason of selecting hdfc bank for most of the people is their
services. Most of the customers of Hdfc bank are satisfied. It all depends on customer
interaction with the branch staff and the attention given to them and also how fast the
problems are being resolved. Conclusion about services and charges is both favorable and
unfavorable. It is favorable when it is providing good services in low charges or charges
equal to the charges of the main competitor. It is unfavorable for the services and products
which HDFC Bank is not providing while provided by other leading banks. Banks are
providing the same service by charging minimum charges. This could prove unfavorable
to bank as this service can attract customers. The study highlighted that generally the Hdfc
bank is satisfied with the problem solving capacity of the employees of bank. Hdfc claims
to be no 1 private banks because it takes customer satisfaction as the utmost priority To
conclude at last HDFC bank is a bank, which provides attractive services, it has got a very
good name in the market. Lastly research concludes that HDFC bank keep up its name &
grows with a great speed. It was such a grateful opportunity to get training in such a
renowned bank.

35
 SUGGESTIONS

1. HDFC BANK should be having marketing campaign to make the people know about
the products and services which other banks are having, to increase penetration in the
market.’

2. Bank should also consider the reduction in the services pricing for attracting more
customers.

3. HDFC should also consider the inclusion of door step banking provided by the other
players for cash pick up and the other services for their esteemed customers.

4. The HDFC BANK should also reduce the minimum margin amount for saving
Account to capture the market in full.

36
 CHAPTER 7

LIMITATIONS

1. The time provided for the research is limited to cover the whole area of BASTI.
2. The research is conducted on a small group so chances of result variation might exist.
3. Limited sample size
4. The information given by respondents might be biased.
5. Some of respondent were reluctant to give information.

37
 BIBLIOGRAPHY

Books

Chaudhary K., and Sharma M. (2011), “Performance of Indian public sector banks and private

sector banks: a comparative study”

Ganguli and Roy (2011), “Factors affecting customer satisfaction in the Indian retail banking

sector”.

Irfana and Raghurama (2013), “Analysis of the customer behaviour towards e-banking

services”.

Jani Shashikant A. (2012), “Comparative study on the use of technology in retail banking

among public and private sector”.

Kalpesh (2011), “comparative study of financial performance of Indian banks”.

Mukhopadhy (2011), “Analysis of retail banking in India”.

Nishit (2012), “Comparative study on private sector banks in India”.

Rathamani P. (2002), “Customer satisfaction towards private sector banks”.

MAGAZINES:

Business Today

Business World.

INTERNET WEBSITE

www.hdfcbank.com
www.en.wikipedia.org
www.bankbazaar.com
www.marketing91.com

38
 ANNEXURE

QUESTIONNAIRE

Dear Sir/Madam

This is to inform you that all information given by you is purely for academic purpose
nothing shall be disclosed for any other purpose

PERSONAL DETAILS.

NAME-……………………………………………………………………...
AGE-………………………………………………………………………...
GENDER-…………………………………………………………………..
CONTACT NO-.............................................................................................
CITY-……………………………………………………………………….

1. What is your Occupation?

Professional ( ) Self-employed ( ) Salaried ( ) Others ( )

2. What is the reason for selecting the particular bank?

Goodwill ( ) Service ( ) Nearness ( )

3. Which type of account you operate?

Current account ( ) saving account ( )

4. Are you satisfied with your bank services?

39
 Strongly satisfy ( ) Satisfy ( ) Neutral ( ) Unsatisfied ( ) Strongly Unsatisfied ( )

5. The bank always provides the services at the time it promise to do so ?

Strongly agreed ( ) Agreed ( ) Neutral ( ) Disagreed ( ) Strongly Disagreed ( )

6. Employees of the bank are consistently courteous with you?

Strongly Agreed ( ) Agreed ( ) Neutral ( ) disagreed ( ) strongly disagreed ( )

7. When you have an account related problem, the bank shows a sincere interest in
Solving it?
Strongly Agreed ( ) Agreed ( ) Neutral ( ) disagreed ( ) strongly disagreed ( )

8. Banks sends you alert on your mobile for your transaction?

Strongly Agreed ( ) Agreed ( ) Neutral ( ) Disagreed ( ) strongly disagreed ( )

9. Are you satisfy with interest rates provided by your bank?

Strongly Satisfied ( ) Satisfied ( ) Neutral ( ) Unsatisfied ( ) Strongly Unsatisfied ( )

10. Is your bank charges any additional service charges to your account?
Strongly Agreed ( ) Agreed ( ) Neutral ( ) Disagreed ( ) Strongly Disagreed ( )

11. Banks provides you necessary instruction manual for financial services?
Strongly Agreed ( ) Agreed ( ) Neutral ( ) Disagreed ( ) strongly Disagreed ( )

12. Bank provide statement of your account timely?

40
Strongly Satisfied ( ) Satisfied ( ) Neutral ( ) Unsatisfied ( ) Strongly Unsatisfied ( )

13. You wish to change your bank in future due to better services?
Strongly Agreed ( ) Agreed ( ) Neutral ( ) Disagreed ( ) strongly disagreed ( )

14. What suggestions do you want to give for improvements in the bank services?

______________________________________________________________________

______________________________________________________________________

41