ABSTRACT

The present study was undertaken to know the preference of the customers towards HDFC
Bank. The main problem of the customers is They are not well aware of the services provided
by their banks. The study also force on the customer perception that how the banking service
can be improved. In our study we have used both primary sources of data as well as
secondary sources of data. During project we came to know that the banks are highly
preferred by the customers but their preference is different up to some extent towards the
service of the banks.
 EXECUTIVE SUMMARY

The report contains the organizational study done at HDFC Bank. The report title is
“CUSTOMER SATISFACTION TOWARDS HDFC BANK”The report gives an overview
of the banking Sector and company profile. And awarenessof customers about different types
of products and services offered by HDFC Bank. This study was conducted to find out the
customer satisfaction regarding HDFC bank.

The methodology adopted for the study was through a structured questionnaire, which is
targeted to the different persons in Mumbai city. For this purpose sample size of 80 was
taken. The data collected from the different persons was analyzed thoroughly and
presented in the form of charts and tables.

HDFC must advertise regularly and create brand value for its products and services.
Most of its competitors like SBI.ICICI, Axis, kotak Mahindra and nationalized banks use
television advertisements to promote their products. The Indian consumer has a false
perception about private banks – they feel that it would not safe.

Safety and returns are the two main reasons people invest in banks. On the whole HDFC
bank is a good place to work at. Every new recruit is provided with extensive training on
the products of HDFC. This training enables an advisor/sales manager to market the
policies better. The company should try to create awareness about itself in India. . With
an improvement in the sales techniques used, a fair bit of advertising and modifications
to the existing product portfolio, HDFC would be all set to capture the banking market in
India as it has around the globe.

INDEX
CHAPTER NO. PARTICULARS PAGE NO.
1 INTRODUCTION

1.1 INTRODUCTION OF PROJECT

1.2 INTRODUCTION TO BANKING SECTOR
1.3 INTRODUCTION TO HDFC BANK
1.4 SCOPE OF THE STUDY
1.5 OBJECTIVE OF THE STUDY
2 REVIEW OF LITERATURE

3 COMPANY PROFILE

3.1 HDFC BANK

3.2 HISTORY OF HDFC BANK
3.3 KEY EXECUTIVE
3.4 TECHNOLOGY USED BY HDFC BANK
3.5 CHALLANGES FOR HDFC BANK
3.6 MARKETING MIX OF HDFC BANK
3.7ASSET QUALITY OF HDFC BANK
3.8 BUSINESS STRATEGY
3.9 BUSINESS SEGMENT
3.10 PRODUCT OF HDFC BANK
3.11 CORPORATE BANKING
3.12 NRI BANKING
3.13 HUMAN RESOURCES DEPARTMENT
3.14 INTRODUCTION OF FINANCE DEPARTMENT
3.15 ACHIEVEMENTS
3.15 VISION AND MISSION
3.16 SWOT ANALYSIS
4 RESEARCH METHODOLOGY

4.1 RESEARCH METHODOLOGY

4.2 RESEARCH DESIGN
4.3 VARIABLE OF THE STUDY
4.4 DATA COLLECTIONS
5 DATA ANALYSIS AND INTERPRETATIONS

6 FINDING OF THE STUDY

7 SUGGESTIONS & RECOMMENDATIONS

8 LIMITETIONS OF THE STUDY

9 CONCLUSIONS

10 BIBILOGRAPHY

11 WEBILOGRAPHY
12 QUESTIONEER

1. INTRODUCTION:-
1.1 INTRODUCTION OF PROJECT:-

 customer satisfaction :-

Customer satisfaction refers to how satisfied customers are with the products or
services they receive from a particular agency. The level of satisfaction is determined not
only by the quality and type of customer experience but also by the customer’s expectations.
A customer may be defined as someone who

• has a direct relationship with, or is directly affected by your agency and

• Receives or relies on one or more of your agency’s services or products.

 Customers in human services are commonly referred to as service users, consumers or

clients. They can be individuals or groups. An organization with a strong customer
service culture places the customer at the centre of service design, planning and
service delivery. Customer centric organizations will:
 Determine the customer’s expectations when they plan listen to the customer as they
design.
 Focus on the delivery of customer service activities value customer feedback when
they measure performance.

 Importance of cutomer satisfaction :-

 There are a number of reasons why customer satisfaction is important in Banking
Sector:

• Meeting the needs of the customer is the underlying rationale for the existence of
community service organizations. Customers have a right to quality services that deliver
outcomes.

• Organizations that strive beyond minimum standards and exceed the expectations of their
customers are likely to be leaders in their sector.

• Customers are recognized as key partners in shaping service development and assessing
quality of service delivery.

The process for measuring customer satisfaction and obtaining feedback on organizational
performance are valuable tools for quality and continuous service improvement

1.2 INTRODUCTION TO BANKING SECTOR:-

The banking sector is the lifeline of any modern economy. It is one of the important financial
pillars of the financial sector, which plays a vital role in the functioning of an economy. It is
very important for economic development of a country that its financing requirements of
trade, industry and agriculture are met with higher degree of commitment and responsibility.
Thus, the development of a country is integrally linked with the development of banking. In a
modern economy, banks are to be considered not as dealers in money but as the leaders of
development. They play an important role in the mobilization of deposits and disbursement of
credit to various sectors of the economy. The banking system reflects the economic health of
the country. The strength of an economy depends on the strength and efficiency of the
financial system, which in turn depends on a sound and solvent banking system. A sound
banking system efficiently mobilized savings in productive sectors and a solvent banking
system ensures that the bank is capable of meeting its obligation to the depositors. In India,
banks are playing a crucial role in socio-economic progress of the country after
independence. The banking sector is dominant in India as it accounts for more than half the
assets of the financial sector. Indian banks have been going through a fascinating phase
through rapid changes brought about by financial sector reforms, which are being
implemented in a phased manner. The current process of transformation should be viewed as
an opportunity to convert Indian banking into a sound, strong and vibrant system capable of
playing its role efficiently and effectively on their own without imposing any burden on
government. After the liberalization of the Indian economy, the Government has announced a
number of reform measures on the basis of the recommendation of the Narasimhan
Committee to make the banking sector economically viable and competitively strong. 2 The
current global crisis that hit every country raised various issue regarding efficiency and
solvency of banking system in front of policy makers. Now, crisis has been almost over,
Government of India (GOI) and Reserve Bank of India (RBI) are trying to draw some
lessons. RBI is making necessary changes in his policy to ensure price stability in the
economy. The main objective of these changes is to increase the efficiency of banking system
as a whole as well as of individual institutions. So, it is necessary to measure the efficiency of
Indian Banks so that corrective steps can be taken to improve the health of banking system

1.3 INTRODUCTION TO HDFC BANK:-

The Housing Development Finance Corporation Limited (HDFC) was amongst the firstto
receive an ‘in principle' approval from the Reserve Bank of India (RBI) to set up a bank in
the private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994.
The bank wasincorporated 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 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, a
strong market reputation, large shareholder base and unique consumer franchise, HDFC was
ideally positioned to promote a bank in the Indian environment.

HDFC Bank began operations in 1995 with a simple mission: to be a “World Class Indian
Bank.” We realized that only a single minded focus on product quality and service
excellence would help us get there. Today, we areproud to say that we are well on our way
towards that goal.

HDFC Bank Limited (the Bank) is an India-based banking company engaged in providing a
range of banking and financial services, including commercial banking and treasury
operations. The Bank has a network of 1412 branches and 3295 automated teller machines
(ATMs) in 528 cities and total employees are 52687.

1.4 SCOPE OF THE STUDY:-

A Study on customer satisfaction level regarding HDFC bank is study of customer
satisfaction level regarding various services provided by the HDFC bank. The HDFC bank
Provides various utility services to their customers. The purpose of this study is to analyze
The satisfaction level of the customer towards the sevices providing by the HDFC bank.
The research covers the customer opinion on banking services which will be helpful for
Further development and growth of banking venture of HDFC bank .
This research focuses on the level of satisfaction derived from banking services of HDFC
bank in Mumbai.

1.5 OBJECTIVES OF THE STUDY:-

  To identify the dimensions of SERVQUAL that ensure maximum satisfaction for
customers in the banking sector.

 To know the customer awareness regarding the bank’s products.

 To identify the dimensions of SERVQUAL that ensure maximum satisfaction for

customers in the banking sector.

 To identify the factors affecting customer satisfaction.

 To know the relationship of SERVQUAL Dimensions and customer satisfaction level

regarding HDFC Bank.

 To access whether customer satisfaction mediates the relationship between service

quality

 dimensions, situational factors and customer loyalty.

 To identify the degree of satisfaction of service quality via private sector banks
comparatively to public sector banks.

2 REVIEW OF LITERATURE:-
1. D. Srinivas, Prof. N. Hanumanth Rao (2018)-In their research paper titled 'Service
Quality In Commercial Banks: A Study Of Public Sector Banks In Warangal District' the
objectives of the study were to determine the perceptions of customers regarding the quality
of service delivered by public and
private bank, to determine the relevant dimensions of service quality for the banking sector
and to identify the dimensions of SERVQUAL that ensure maximum satisfaction for
customers in the banking sector. The study explores the service quality of the public sector
banks in Warangal district of Telangana.. As a pilot study data collected from 100
respondents from Warangal District , which is based on convenience sampling basis. For
measuring service quality, Likert type five point scale was used. Suitable score values was
assigned to the responses obtained for each point. The dissatisfied customers find
responsiveness and empathy dimension as the twin concept that is lacked by the bank. So far
as the satisfied customers are concerned, there exist a long gap between the expected service
quality (what type of services the customers
expect exactly from the bank) and actual service quality (what type of services the are getting
from bank in real sense).
2. E. Ashraf and Dr. K. Venugopalan (2018)- In their research paper 'Service Quality And
Customer Satisfaction: A Comparison Between Public And Private Sector Banks In Kerala'
the objectives were two fold- to compare the level of service quality dimensions of
commercial public sector banks and private
sector banks in Kerala and to examine the satisfaction level of customers of commercial
public sector banks and private sector banks in Kerala. This study was an analytical nature
based on primary. The primary data for the analysis were collected, by the researcher, from
the customers of commercial public sector banks and private sector banks in Kerala. It was
collected with the help of structured questionnaires. Questionnaire measures service quality
by implementing the five dimensions of the “SERVQUAL” instrument. The study result
indicates the high level of service quality in all dimensions (more than 5). It also reveals that,
there is no significant difference in level of service quality and customer satisfaction between
public sector and private sector banks in Kerala.

3.H.M.G.Y.J. Hennayake (2017)-In his research paper 'Impact of Service Quality on

Customer Satisfaction of Public Sector Commercial Banks: A Study on Rural Economic
Context' the objectives were to evaluate the relationship between service quality and
perceived customer satisfaction, to identify the impact of Human-Related service quality
factors towards the perceived customer satisfaction in commercial banking sector, to identify
the impact of Non-Human Related service quality factors towards the perceived customer
satisfaction in commercial banking sector to propose recommendations to enhance perceived
customer satisfaction in banking industry. Primary data was collected by distributing a
detailed questionnaire for 210 respondents who are the customers of state commercial banks
in Puttalam district. Findings revealed that the Human Related Factors of perceived service
quality have a greater impact on customer satisfaction whereas Reliability and
Responsiveness are the most influential factors on customer satisfaction. Managerial
implications and the research propositions were suggested for the service marketing sphere at
the conclusion.
4.Dr. Biju John M(2017)- In his research paper titled 'Dynamics Of Service Quality In The
Indian Banking Sector' the objectives were to evaluate the perceived service quality in
commercial banks, to ascertain the dimensions of service quality in banks and to offer
suggestions to improve the service quality in banks. The paper is based on a descriptive and
exploratory study based on primary data. Primary information is collected using survey
method. The customers of commercial banks in Thrissur District of Kerala State
forms the population of the study. The study used convenient sampling technique and
selected 200 customers of commercial banks from different areas of Thrissur district of the
state of Kerala. . It is suggested to the banking sector that apart from ensuring the trust of
customers, it should improve their
operations in providing the customers highly advanced technological services for easy access
and instant delivery of services.

5. Denise K. Conroy in his study titled (Customer satisfaction measures in the publicsector:
what do they tell us?) attempts to devise customer satisfaction measures, according to him
there are a number of factors which can affect the interpretation of results - the nature of the
customer, service provision, service quality and, for the public Sector, the extent to which
consumer sovereignty exists. Resources may be better directed towards setting and
maintaining high levels of standard of service. This study addresses the difficulties and
highlights the complex nature of a customer or service beneficiary who can be, at the same
time, a taxpayer, voter, recipient of financial benefits, with expectations of the public sector
and its delivery agent, yet cannot choose another provider.
6. Harry Nowka, Southwestern Oklahoma State University, Nancy Buddy, Southwestern
Oklahoma State University, Robert Reeder, Southwestern Oklahoma State University and
Daniel Hart, Southwestern Oklahoma State Universityin their study titled (Customer
responses: A COMPARATIVE STUDY) wants to determine various variables
whichinfluence customers of a bar and grill. This comparative analysis includes customer
responses with comparisons made to the major competitor's customer responses, student
customer responses, and responses of a panel of non customers assembled to assess potential
customer responses. This study indicates that location can be a significant deterrent to
expansion of the customer base. The personality of the owner can have a positive impact on
customer flow. Analysis of spending patterns indicates that food and pool were underutilized.
The male/female ratio was a determinate of customer flow.

7. Dawn Iacobucci, Amy Ostrom, Kent Graysonin their study titled(DistinguishingService

Quality and Customer Satisfaction: The Voice of the Consumer) presentstwo studies that rely
on divergent methodologies to examine whether or not quality and satisfaction have distinct
antecedent causes, consequential effects, or both (i.e., whether or not they should be
considered a single construct, or distinct, separable constructs). They focus on consumers’
understanding and use of the words quality and satisfaction; in both studies, respondents
report whether or not they think quality and satisfaction differ,and if so, on what dimensions
or under what circumstances. In the first study, they use the qualitative “critical incident”
technique to elicit service attributes that are salient to respondents when prompted to consider
quality and satisfaction as distinct. they code the responses to these open-ended survey
questions to examine whether quality can be teased apart from satisfaction, from the
respondents’ (consumers’) perspective. In the second study, to triangulate on the qualitative
data, they experimentally manipulated a number of service attributes drawn from both the
first study and from the literature to see whether or not they have differential impacts on
judgments of quality and satisfaction. They did not presuppose that quality and satisfaction
differ—rather, they asked respondents to make a judgment either of quality or of satisfaction,
defining the term as they saw fit.

8. Antreas D. Athanassopoulos in his study titled (Customer Satisfaction Cues To Support

Market Segmentation and Explain Switching Behavior) examined thecustomer satisfaction
cues in retail banking services in Greece. The study proposes an instrument of customer
satisfaction that contains service quality and such other attributes as price, convenience, and
innovation. The proposed framework of customer satisfaction was verified empirically
yielding four distinct facets for business customers and five for individual customers. The
performance implications of the customer satisfaction instrument are also explored. What is
shown is that customer segments, in fact, yield statistically different satisfaction scores,
which verifies the managerial value of customer segmentation practices. Finally, the facets of
customer satisfaction as explanatory cues for the switching behavior of individual and
business customers were tested successfully.

9. Rengasamy Elango and Vijaya Kumar Gudepin their studytitled(A ComparativeStudy on

the Service Quality and Customer Satisfaction among Private, Public andForeign Banks)
focuses on the service quality and customer satisfaction among theprivate, public and foreign
banks in India. An analysis is carried out to examine the level of awareness among customers
and to identify the best sector which provides qualitative customer service. This becomes
relevant in the context of recommendations of various committees constituted by the
Government of India and the RBI, from time to time, tosuggest measures to improve
customer service systems of the public sector commercial banks of India. A well-structured
questionnaire is used to collect the views of respondents across the three banking sectors. The
survey instrument includes various dimensions, pertaining to the quality of customer services
in terms of banking personnel, convenient working hours, Web-based services, error free
value-added services and efficient grievance redressal mechanism etc. Apart from the basic
statistical tools such as measures of central tendency, The authors also use `factor analysis'
and the `One-way Anova' classification. The idea behind this is to extract the relevant factors
and analyze whether there is any significant difference with respect to service quality within
the three banking sectors. The results indicate that the level of awareness among the
customers improved significantly during the study period. It is interesting to note that the
results are consistent with the previous studies conducted on customer service aspects, and it
has been observed that the foreign and the new generation private sector banks are serving
the customers better. This has larger implications on the public sector commercial banks in
India with respect to customer service delivery aspects. It is high time the public sector
commercial banks made efforts to revamp their approach towards customers, so as to perform
better and derive competitive advantage in the long run

3. COMPANY PROFILE:-
3.1 HDFC BANK:-

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

government departments, and Institutional customers. It offers deposit and transaction

banking products, Supply chain financing, working capital and term finance, agricultural
loans, and funded non-funded treasury, and foreign exchange products. This segment’s
services include trade services, cash management, and money Market, custodial, tax
collection, and electronic banking. In addition, it provides correspondent bank services to co-
operative banks, private banks, foreign banks, and regional rural banks. The Treasury
Services segment operates primarily in areas, such as foreign exchange, money market,
interest rate trading, and Equities. As of March 31, 2009 HDFC bank had a network of 1,142
branches And 3,295 automated teller machines in 528 cities in India. The company was
founded in 1994 and is based in Mumbai, India.

As of March 31, 2008, the Bank’s distribution network was at 761 Branches and 1977 ATMs
in 327 cities as against 684 branches and 1,605 ATMs in 316 cities as of March 31, 2007.
Against the regulatory approvals for new branches in hand, the Bank expects to further
expand the branch network by around 150 branches by June 30, 2008. During the year, the
Bank stepped up retail customer acquisition with deposit accounts increasing from 6.2
million to 8.7 million and total cards issued (debit and credit cards) increasing from 7 million
to 9.2 million. Whilst credit growth in the banking system slowed down to about 22% for the
year ended 2008-09, the Bank’s net advances grew by 35.1% with retail advances growing by
38.6% and wholesale advances growing by 30%, implying a higher market share in both
segments. The transactional banking business also registered healthy growth with cash
management volumes increased by around 80% and trade services volumes by around 40%
over the previous year. Portfolio quality as of March 31, 2008 remained healthy with gross
nonperforming assets at 1.3% and net non-performing assets at 0.4% of total customer assets.

3.2 HISTORY OF HDFC BANK:-

HDFC BANK LTD 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.

If ever there was a man with a mission it was Hasmukhbhai Parekh, Founder and
Chairman-Emeritus, of HDFC Group.HDFC BANK LTD was amongst the first to set
up a bank in the private sector. The bank was incorporated on 30th August 1994 in the
name of ‘HDFC Bank Limited’, with its registered office in Mumbai. It commenced
operations as a Scheduled Commercial Bank on 16th January 1995. The bank has
grown consistently and is now amongst the leading players in the industry .
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, a strong market reputation, large shareholder
base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the
Indian environment In a milestone transaction in the Indian banking industry, Times
Bank was merged with HDFC Bank Ltd., effective February 26, 2000.

HDFC Bank Ltd is one of India's premier banks. Headquartered in Mumbai HDFC Bank is a
new generation private sector bank providing a wide range of banking services covering
commercial and investment banking on the wholesale side and transactional/branch banking
on the retail side. As of 30 September 2017 the bank's distribution network was at 4729
branches and 12259 ATMs across 2669 cities and towns. HDFC Bank also has one overseas
wholesale banking branch in Bahrain a branch in Hong Kong and two representative offices
in UAE and Kenya. The Bank has two subsidiary companies namely HDFC Securities Ltd
and HDB Financial Services Ltd.The Bank has three primary business segments namely
banking wholesale banking and treasury. The retail banking segment serves retail customers
through a branch network and other delivery channels. This segment raises deposits from
customers and makes loans and provides other services with the help of specialist product
groups to such customers. The wholesale banking segment provides loans non-fund facilities
and transaction services to corporate public sector units government bodies financial
institutions and medium-scale enterprises. The treasury segment includes net interest earnings
on investments portfolio of the Bank.The Bank's ATM network can be accessed by all
domestic and international Visa/MasterCard Visa Electron/Maestro Plus/Cirrus and American
Express Credit/Charge cardholders. The Bank's shares are listed on the Bombay Stock
Exchange Limited and The National Stock Exchange of India Ltd. The Bank's American
Depository Shares (ADS) are listed on the New York Stock Exchange (NYSE) and the
Bank's Global Depository Receipts (GDRs) are listed on Luxembourg Stock
Exchange.HDFC Bank Ltd Was incorporated on August 30 1994 by Housing Development
Finance Corporation Ltd. In the year 1994 Housing Development Finance Corporation Ltd
was amongst the first to receive an 'in principle' approval from the Reserve Bank of India to
set up a bank in the private sector as part of the RBI's liberalization of the Indian Banking
Industry. HDFC Bank commenced operations as a Scheduled Commercial Bank in January
1995. Ramon House Churchgate branch was inaugurated on 16 January 1995 as the first
branch of the bank. In March 1995 HDFC Bank launched Rs 50-crore initial public offer
(IPO) (5 crore equity shares at Rs 10 each at par) eliciting a record 55 times oversubscription.
HDFC Bank was listed on the Bombay Stock Exchange on 19 May 1995. The bank was
listed on the National Stock Exchange on 8 November 1995.In the year 1996 the Bank was
appointed as the clearing bank by the NSCCL. In the year 1997 the launched retail
investment advisory services. In the year 1998 they launched their first retail lending product
Loans against Shares. In the year 1999 the Bank launched online real-time Net Banking. In
February 2000 Times Bank Ltd owned by Bennett Coleman & Co. / Times Group
amalgamated with the Bank Ltd. This was the first merger of two new generation private
banks in India. The Bank was the first Bank to launch an International Debit Card in
association with VISA (Visa Electron). In the year 2001 they started their Credit Card
business. Also they became the first private sector bank to be authorized by the Central Board
of Direct Taxes (CBDT) as well as the RBI to accept direct taxes. During the year the Bank
made a strategic tie-up with a Bangalore-based business solutions software developer Tally
Solutions Pvt Ltd for developing and offering products and services facilitating on-line
accounting and banking services to SMEs. On 20 July 2001 HDFC Bank's American
depositary receipt (ADR) was listed on the New York Stock Exchange under the symbol
HDB. Also they made the alliance with LIC for providing online payment of insurance
premium to the customers. During the year 2002-03 the Bank increased the number of
branches from 171 Nos to 231 Nos and the size of the Bank's ATM network expanded from
479 Nos to 732 Nos. They also expanded their presence in the 'merchant acquiring' business.
During the year 2003-04 the Bank expanded the distribution network with the number of
branches increased from 231 Nos to 312 Nos and the size of the Bank's ATM network
increased from 732 Nos to 910 Nos. In September 2003 they entered the housing loan
business through an arrangement with HDFC Ltd whereby they sell HDFC Home Loan
product. During the year 2004-05 the Bank expanded the distribution network with the
number of branches increased from 312 Nos to 467 Nos and the size of the Bank's ATM
network increased from 910 Nos to 1147 Nos. During the year 2005-06 the Bank launched
the 'no-frills account' a basic savings account offering to the customer. Also the distribution
network was expanded with the number of branches increased from 467 Nos (in 211 cities) to
535 Nos (in 228 cities) and the number of ATMs from 1147 Nos to 1323 Nos.During the year
2006-07 the distribution network was expanded with the number of branches increased from
535 Nos (in 228 cities) to 684 Nos (in 316 cities) and the number of ATMs from 1323 Nos to
1605 Nos. They commenced direct lending to Self Help Groups. Also they opened a
dedicated branch for lending to SHGs in Thudiyalur village (Tamil Nadu). In September 28
2005 the Bank increased their stake in HDFC Securities Ltd from 29.5% to 55%.
Consequently HDFC Securities Ltd became a subsidiary of the Bank.During the year 2007-
08 the Bank added 77 Nos new branches take the total to 761 Nos branches. Also 372 Nos
new ATMs were also added taking the size of the ATM network from 1605 Nos to 1977 Nos.
HDB Financial Services Ltd became a subsidiary company with effect from August 31 2007.
In June 2 2007 the Bank opened 19 branches in a day in Delhi and the National Capital
Region (NCR).During the year 2008-09 the Bank expanded their distribution network from
761 branches in 327 cities to 1412 branches in 528 Indian cities. The Bank's ATMs increased
from 1977 to 3295 during the year. As per the scheme of amalgamation Centurion Bank of
Punjab Ltd was amalgamated with the Bank with effect from May 23 2008. The appointed
date for the merger was April 01 2008. 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.

3.3 KEY EXECUTIVE:-

 BOARD OF DIRECTORS
PERSON DESIGNATION
Mr. Jagdish Capoor Vice President
Mr. Aditya Puri Managing Director
Mr. Paresh Sukthankar Executive Director
Mr. Harish Engineer Executive Director
Mr. Keki M. Mistry Director
Mr. Ashim Samanta Director
Mr. Arvind Pande Director
Mrs. Renu Karnad Director
Mr. C M Vasudev Director
Mr. Gautam Divan Director
Dr. Pandit Palande Director

Abhay Aima Equities & Private Banking and NRI Business

Anil Jaggia Information Technology and Legal
Ashish Parthasarth Treasury
Bharat Shah Merchant SeRvices
G Subramanian Audit & Compliance
Kaizad Maneck Credit & Market Risk
Mandeep Maitra H.R, Admin & Infrastructure
Navin Puri Branch Banking
Pralay Mondal Assets & CREDIT CARDS
Rahul N Bhagat Retail Liabilities, Marketing & Direct Banking Channels
Ananthanarayan Operations
Sashi Jagdishan Finance
Sudhir Joshi Treasury

3.4 TECHNOLOGY USED BY HDFC BANK:-

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.

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, saleable
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.

 Digital Strategy of HDFC Bank :-

The bank has been using the developments in the digital world to streamline operations. "The
changes in the operating model have brought in efficiencies in terms of faster turnaround and
lower cost as transactions are processed concurrently rather than sequentially," says Puri. The
bank has been investing a lot in data warehousing, social media linkages, data analytics and
mobile-based innovations. In retail banking, it now promises personal loans to existing
customers in 10 seconds and car loans in 30 minutes. There is also an instant top-up car loan.
It has also been tying up with ecommerce merchants for direct transactions. The ATM
strategy involves doing multiple things. For instance, it is increasingly using its ATM
machines for communication, especially for getting across messages on new offerings.

"There is nothing like competition to keep you on your toes," says Sukthankar, who also
heads the retail banking division. Puri pitches in by saying they are changing the banking
experience for retail customers. "Things that used to take days or hours now take minutes or
seconds. We have stemmed the tide of disrupters," he says. 

HDFCB’s digital strategy is centered around (a) increasing efficiency, (b)

acceleratinggeographic expansion, (c) raising customer convenience and ease, and
(d)competing against disruptive technology. It is already seeing strong success in 10-second
personal loans (20% of incremental sourcing through this channel), pre-approved auto loans
(8-10% of disbursements), and SmartBuy (10% of Amazon’svolumes). It plans to use
artificial intelligence for routine work and most initiativesare likely to be launched by
December 2016. With these initiatives gaining tractionand incremental business coming from
these channels, the management isconfident of reducing the cost-to-income ratio

3.5 CHALLENGES FOR HDFC BANK:-

The bank has a strong liabilities franchise. Its deposits have been growing at more than 20 per
cent a year. The slowdown in the economy and competition for the low-cost current and
savings account (CASA) deposits from new generation private sector banks is impacting the
established players. The bank's CASA deposits have also not moved up from the mid-40 per
cent range for the past five-six years. CASA is a source of low-cost funds for banks. A high
CASA number indicates high margins and profitability. One of the reasons for CASA not
improving is also the high proportion of fixed deposits, especially foreign currency deposits,
raised after September 2013, when Reserve Bank of India Governor Raghuram Rajan had
opened the window to stem the depreciation of the rupee. The banking sector had mobilized
over $30 billion through this window.

The bank, however, has a different take on this. "CASA is going up in absolute terms. In fact,
our CASA market share has gone up by 15-20 per cent," says Sukthankar. Analysts say if the
country's economy deteriorates and competition from payments and small finance banks
intensifies, the decline in CASA as a proportion of total deposits will hit the bank's cost of
funds. "There is going to be a fight for CASA when the new banks are operational," says an
analyst. Sukthankar, however, says the market is big enough.

The second challenge is the high cost-to-income ratio of 0.45 per cent. The figure for ICICI
Bank is 0.37 per cent. The bank says this is due to its bigger retail portfolio. "There is high
transaction intensity in retail because of smaller loan sizes," says Sukthankar. The other
reason is the huge investments the bank has undertaken in branch expansion and digitisation.
"We should gain in terms of cost in the next three-five years as digital banking picks up. Our
proportion of digital transactions is growing in a big way," says Sukthankar. Puri believes the
reasons for the high cost-to-income ratio are not bad per se as "consumer or retail businesses
also generate higher earnings and margins".

Lastly, banks will always be exposed to people, governance, fraud as well as technology
risks. A frank Puri says cyber security risk will always remain a major concern. "The only
way to safeguard oneself is putting up more checks and balances," he says. In fact, the bank
was recently under the lens of regulators for violation of KYC norms and anti-money
laundering guidelines after a media expose that entangled some other banks too. "You can
never eliminate people fraud. Technology is not God. No management system is God. So, it
is wrong to presume that frauds will go away just because you have gone hi-tech," he says. 

3.6 MARKETING MIX OF HDFC BANK:-

Marketing Mix of HDFC Bank analyses the brand/company which covers 4Ps (Product,
Price, Place, Promotion) and explains the HDFC Bank marketing strategy. The article
elaborates the pricing, advertising & distribution strategies used by the company.

Product:

HDFC Bank is one of the leading banks in India. HDFC offers a wide range of products in its
marketing mix strategy, namely in personal and enterprise sector. The various services
offered by HDFC Bank are summarized as follows. Accounts and deposits which covers
savings accounts, salary accounts, current accounts, deposits, safe deposit lockers, rural
accounts and pension accounts. HDFC Bank offers loans to meet the diverse needs and it
cover personal loans, car loans, business loans etc. HDFC offers cards which includes credit
cards, debit cards, prepaid cards, credit card reward programs and loan on credit card. Demat
options for investors which includes demat account, 2 in 1 account, 3 in 1 account and
investment assist. Investment options covering Invest Track, investment products, investment
advisory group reports, PPF (public provident fund) and sukanya samriddhi account are
provided to HDFC customers. Insurances for various options like life, health, motor
insurance, travel, home, two wheeler and student travel - suraksha. Forex includes travel
solutions, remittance products, other forex services for help and purchase.
Price:

HDFC Bank follows a competitive pricing strategy in its marketing mix but maintains a
premium level at the same time. It is clearly visible that it enjoys maximum market capital in
terms of shares in India. The other domestic competitors are either PSUs or national bank,
HDFC Bank is always priced higher in terms of minimum cap required to open a new
account. RBI controls and regulates the pricing policies, like for any other bank in India.

Place:

HDFC banks have got a strong presence all across India. Till 2016, HDFC outreached 4500+
branches in approx. 2600 cities/towns with 12000 ATMs. HDFC Bank makes sure that its
presence is felt in each and every corner of the nation and every individual should avail its
facilities equally. HDFC has its major offices in cities and towns for smooth operation
process. Its website is well designed and well maintained. It facilitates ease of net banking,
online payment options, etc.

Promotion:

HDFC Bank focuses a lot on the promotional strategy in its marketing mix. HDFC is
involved in large number of CSR activities for sustainable livelihood, financial literacy,
education, training and community initiatives. HDFC has always made its presence feel in the
media through advertisements, hoardings, posters, ads in newspapers, magazines,
promotional events, sponsorships, etc. HDFC also has shareholdings in corporate bodies,
mutual funds, financial institutions, etc. which creates a sense of value and trust amongst the
shareholders and customers towards this particular brand.
3.7 ASSET QUALITY OF HDFC BANK:-

The asset quality of some of the country's best banks has been worsening for years now.
HDFC Bank is an exception to this. Its strong credit appraisal process is reflected in net non-
performing assets, or NPAs, which, at 0.25 per cent, are the lowest among all banks. The
figures are 2.12 per cent for State Bank of India and 1.61 per cent for ICICI Bank. This
makes HDFC Bank the winner on the asset quality front too.

One reason for this is guidance provided by the parent, HDFC Ltd, and the second is the
strong systems and processes introduced by Puri who, before joining HDFC Bank, was
heading Citibank in Malaysia.

"We have a clear system. Any portfolio exhibiting signs of delinquency or delayed payments
not in line with the programme is slowed or cut down," says Puri. The bank, for instance,
made early exit from small-ticket personal loans where the industry suffered huge losses after
the 2008 slowdown. Also, it first started offering credit cards to its existing customers, and
that too after a detailed analysis of their creditworthiness. More recently, it stayed from
infrastructure loans, a cause of stress at many banks. "It was difficult to evaluate all the
components that go into infrastructure projects," says Kaizad. Last, but not the least, it
forayed into semi-urban and rural areas after a lot of testing of products and pilot launches to
check for credit losses. The bank's seriousness about asset quality can be gauged from the
fact that the risk staff don't report to business heads and all the information about risk
converges at the CEO level.

But are there risks to asset quality if the economy plunges further due to the slowdown in
China? "As of now, there are no such signs," says Puri.

The bank has also beefed up its board by adding former Reserve Bank of India Deputy
Governor Shyamala Gopinath as chairman. Sukthankar was made deputy managing director
two years ago. Puri's term has been extended till 2020
3.8 BUSINESS STRATEGY:-

I. Increasing market share in India’s expanding banking

II. Delivering high quality customer service
III. Maintaining current high standards for asset quality through disciplined credit risk
management
IV. Develop innovative products and services that attract targeted customers and
address inefficiencies in the Indian financial sector.

3.9 BUSINESS SEGMENT:-

HDFC Bank offers a wide range of commercial and 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-chip manufacturing companies in the Indian
corporate to small & mid-sized corporate 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 corporate 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 Services:-

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 the 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 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 Master card Maestro debit card as
well. The Bank launched its credit card business in late 2001. By September 30, 2005, the
bank had a total card base (debit and credit cards) of 5.2 million cards. The Bank is also one
of the leading players in the "merchant acquiring" business with over 50,000 Point-of-sale
(POS) terminals for debit / credit cards acceptance at merchant establishments.

 Treasury:-

Within this business, the bank has three main product areas - Foreign Exchange and
Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the
liberalization of the financial markets in India, corporate need more sophisticated risk
management information, advice and product structures. These and fine pricing on various
treasury products are provided through the bank's Treasury team. To comply with statutory
reserve requirements, the bank is required to hold 25% of its deposits in government
securities. The Treasury business is responsible for managing the returns and market risk on
this investment portfolio.
3.10 PRODUCTS OF HDFC BANK:-

 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: -

 Saving account
 Current account
 Fix deposit
 Demat account
 Safe deposits lockers.

1. 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:

2. 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 centres across the
country.

3. 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/-.

4. 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.

5. Senior Citizen Account:

 HDFC Bank appreciates your needs and endeavours, which is why, they present an account
especially dedicated to customer, which like a dutiful child will help you fulfil your needs in
the best manner possible.

6. No frills Account:

In an effort to make banking simpler and more accessible for customers, bank has introduced
the 'No Frills' Savings Account, which offers customer all the basic banking facilities.
Customer can even avail of services like Net Banking, Mobile banking free of cost. In this
customer can put Zero Initial Pay-in and a Zero Balance account

7.  Institutional saving accounts:

 A specially designed account that offers twin benefits of a savings as well as a current
account. Customer’s funds continue to earn you interest while he enjoys hassle-free banking
& a host of other features. All this and more in a Zero Balance account.

8. 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: -

 Pay roll account.

 Classic salary account.
 Regular salary account.
 Premium salary account.
 Defence salary account.
 No frills salary account.
  Reimbursement salary account.

 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.

 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. 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.

 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 lakhs 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.

 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.

 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 to maintain 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. 

 Reimbursement Current Account:

 No more paperwork, no more receipts to keep track of - a hassle-free account that allows
deposit the reimbursements receive from company/organization on a monthly basis.

To open this account a person has to follow these processes:

Procure an Account Opening Document (AOD) from HDFC Bank. (If person has just joined,
first request to company to open up a Salary Account for particular person).

Mention Salary Account number and Debit Card number on the AOD so that Debit card can
be linked to both, Salary Account as well as new Reimbursement Account. Request company
to directly credit cash payments to the Reimbursement Account.

 RFC – Domestic Account:

 Full name of this account is Resident foreign currency account.

 Have you accumulated foreign currency from travelling abroad frequently? Received gifts
from relatives in foreign currency? Or earned it by any other means as approved by the
Reserve Bank of India? If so, open Resident Foreign Currency Domestic Account and
manage foreign currency efficiently. Person can choose to set up your account either in US
Dollar, Great Britain Pound or Euro.To open this accounts a person as to follow this process:
Choose the currency in which person wish to operate. Open account with an initial amount as
per the following-US Dollar = 250 Great Britain Pound = 200 Euro = 250 and maintain an
Average Quarterly Balance of the same amount.

 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 to maintain a minimum Average Monthly Balance
(AMB) of just Rs. 75,000. 

 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 lakhs, 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.

 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.

 Fix deposits service:-

 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.People can invest his/her money into either
in security market or gold or mutual fund or into a fix deposits. People always go to that way
where he/she can get more benefits and minimum risks. So, for this purpose he has a better
chance to deposits money in to the fix deposit.

If people believe in long-term investments and wish to earn higher interests on his/her
savings, now is the time to invest money in HDFC bank Fixed Deposit. Get up to 9.75% on
HDFC Bank Fixed Deposit with an additional 0.50% for Senior Citizens. What's more NO
PENALTY if withdraw part of the FD in times of need. Flexibility, Security and High
Returns all bundled into one offering. 

 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.

 Five year tax saving fix deposit:-

  In 2006, it was announced 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.

 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.

 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.

Demat account service:-

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 Lac demat accounts. 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 locker:-

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:-

1. Wide Availability.

2. Lockers available in various sizes.

i.e. Small, Medium, Large and Extra Large with varying rents.

Lockers are rented out for a minimum period of one year. Rent is payable in advance.

No deposits are required to avail a locker. Just open an account and get the locker facility.

There is a nominal annual charge, which depends on the size of the locker and the centre in
which the branch is located.

Nomination for Safe Deposit Locker:-

The Lockers and their contents can be nominated to people near and dear to you.

Nomination facility is available to individual hirer of Safe Deposit Locker. In the case of a
sole hirer of a safe deposit locker, nomination can be made in favor of only one individual.

Where the safe deposit locker is hired in the name of a minor, the nomination shall be made
by a person lawfully entitled to act on behalf of the minor.

Terms & Conditions

For obtaining a Locker at HDFC Bank you must be an account holder with Bank.

Lockers can be allotted individually as well as jointly.

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.

Loss of Key is to be immediately informed to the concerned Branch.

 LOAN SERVICES

In today’s competitive world everything happens only with the help of money or through the
money every person need money. But some time a person has not cash on hand at that time
he needs lone either from any friend or from any financial institute. Lone does not mean that
only lower class person needs it but also upper class person it is needed.

As per the requirement of the every person there are much type of loans are there in the
HDFC bank. 

1. Personal loan:-

A person has so many dreams but some time due to scarcity of money a dream can’t be
satisfy. So, here one solution for that person this is personal loan. From this he/she can fulfil
their needs or requirement. It can be anything either a dream of vacation or son/daughter’s
admission to college or any wedding, so personal loan can be helpful in this entire
requirement.

 As person ordered in the hotel for tea or coffee and it is immediately came fast, same over
here any person want to get a personal loan with the nominal documents he can get the loan.
2. Home loan:-

HDFC Bank brings, HDFC home loans to doorstep. With over 30 years of experience, a
dedicated team of experts and a complete package to meet all housing finance needs, HDFC
Home Loans, help people realize dream.

3. Vehicles loan:-

Nowadays the life is being so fast, time value is becoming more important so to reach at the
destination of any business related occasion or for a boy to reach college or anywhere at the
fix time there are so many requirement of vehicles. But every people have no capacity to
purchase vehicles with cash so for that here in the HDFC bank vehicles loan is available.
There are many types of vehicles loan.

 Types of vehicles loan:

I. Two wheeler loans.
II. New car loan.
III. Used car loan.
IV. Tractor loan (for agree culture business).
V. Commercial vehicle loan.
 So, as per the requirement of the person there are these types of loans are available this are at
the chip rate and hassle free from more documentation and other procedure. And commercial
businessman can get the benefits of the commercial vehicles loans. Thus as per the need of
different people there are vehicle loans available. And also terms and condition are different
as per the requirement. 

4. Express loan plus:-

 Bank offer Express Loans Plus at person Doorstep to help fulfil all his/her needs. The
procedure is simple, documentation is minimal and approval is quick. It is helpful to person
in repairing of house, School admission or also in the family holiday. 

 5. Gold loan:-

With HDFC Bank's Gold Loan, person can get an instant loan against gold jewellery and
ornaments. The procedure is simple, documentation is minimal and approval is quick. A
person can get 70% loan on the value of the gold jewellery and ornaments. There is also
availability of the overdraft on the gold jewellery. With this a customer can get free
additional services like free personalized cheque book, free international debit card, and free
net banking phone banking services.  

6. Educational loan:-

 Nowadays important of education becoming very high. ASs it important becoming high it is
becoming costly. So in the higher education some time people cannot effort a high price at a
same time. So, there is education loan is also available for the student.

 A person can get loan up to 10 Lakhs to study in India and 20 lakhs if he wants to study in
abroad. Loan available up to tenure of 7 years including moratorium period.

Loans disbursed directly to the educational institution. It is released as per fee schedules of
institutes. Exclusive Telegraphic Transfer facility available for courses abroad. Loans
available for short duration/ job oriented courses also.

7. Loan against property:-

HDFC Bank brings Loan Against Property (LAP). Person can now take a loan against
residential or commercial property, to expand his business, plan a dream wedding, and fund
his child's education and much more. He can depend on bank to meet all his business
requirements even to purchase a new shop or office for business. Loan to purchase
Commercial Property (LCP) is a specially designed product to help person expand his
business without reducing the capital from his business.

 CARD SERVICES:-

In today’s competitive and fast time card services providing by the banks are really very
important to every person and every business needs or to take meal in to the hotel or to
purchase jewellery from the jewellery shops cards are playing good role in the banking
sectors.

Bank ranges of Cards help to meet financial objectives. So whether persons are looking to
add to his buying power, conducting cashless shopping, or budgeting his expenditure, he will
find a card that suits him.

1. Credit card:
A person wants many things like, a trip to Bali, a diamond ring for wife's dreams. Some
dreams can't wait. If there's something person has always wanted. If a person wanted fulfils
his wants he can get benefits from the HDFC bank’s credit cards facilities.    

 Different types of credit

 Classic cards
 Silver Credit Card.
 Value plus Credit Card.
 Health Plus Credit Card.
 Premium Cards:
 Gold Credit Card
 Titanium Credit Card
 Woman's Gold Card
 Platinum Plus Credit Card
 Visa Signature Credit Card
 World MasterCard
 Commercial Cards
 Corporate Credit Card
 Debit card:-

 HDFC Bank Debit Cards give person complete and instant access to the
money in his accounts without the risk or hassle of carrying cash.

 Types of debit card: -

 Classic card
 Easy shop international Debit card.
 Premium card
 Easy shop gold Debit card.
 Specialized card
 Easy Shop International Business Debit Card.
 Easy Shop Woman's Advantage Debit Card.
 Easy Shop NRO Debit Card.
 Kisan Card

 
 Prepaid card:-

Besides offering convenience, Prepaid Cards have been tailored to answer travel and gifting
needs.

 Frexplus card. 
 Prepaid Travel Card.
 Gift Plus Cards
 Prepaid Gift Card.
 Food Plus Cards
 Prepaid Food Plus card.
 Money Plus Card
 The Corporate Payment card

 PAYMENT SERVICE:-

 Nowadays life of a person become very stressful and he/she becoming busy with their own
business, but they have to payment for something so for that reason bank’s payment services
become started. With HDFC Bank's payment services, person can bid goodbye to queues and
paper work. Bank’s range of payment options make it easy for pay for a variety of utilities
and services.

 Verified By Visa:

 Do you want to be worry free for your online purchases. Now you can shop securely online
with your existing Visa Debit/Credit card. 

 Net Safe:

Now shop online without revealing your HDFC Bank Credit Card number. What more, you
can now use your HDFC Bank Debit Card also for online purchases. 

 Merchant Services:
Accept all Visa, MasterCard, credit and Debit cards at your outlets through state of the art
POS Machines or through your website and experience hassle free payment acceptance.  

 Bill Pay:

Pay your telephone, electricity and mobile phone bills at your convenience. Through the
Internet, ATMs, your mobile phone and telephone - with Bill Pay, our comprehensive bill
payments solution. 

 Visa Bill Pay:

Pay your utility bills from the comfort of your home! Pay using your HDFC Bank Visa credit
card and forget long queue and late payments forever 

 Pay Now:

Use your HDFC Bank Credit Card to pay your utility bills online, make subscriptions and
donations; no registration required. Enjoy credit free period and reward points as per your
credit card features. 

 Instant Pay:

Pay your bills, make donations and subscribe to magazines without going through the hassles
of any registration. 

 Direct Pay:

Shop or Pay bills online without cash or card. Debit your account directly with our Direct Pay
service! 

 Visa Money Transfer:

Transfer funds to any Visa Card (debit or credit) within India at your own convenience
through HDFC Bank's Net Banking facility. 

 Online Payment of Excise & Service Tax:

Make your Excise and Service Tax payments at your own convenience through HDFC Bank's
Net Banking facility.

3.11 CORPORATE BANKING:-

Corporate Banking reflects HDFC Bank's strengths in providing our corporate clients in
India, a wide array of commercial, transactional and electronic banking products. We achieve
this through innovative product development and a well-integrated approach to relationship
management.

We offer blue chip companies in India, a full range of client-focused corporate banking
services, including working capital finance, trade and transactional services, foreign
exchange and cash management, to name a few. The product offerings are suitably structured
taking into account a client's risk profile and specific needs. Based on our superior product
delivery, industry benchmark service levels and strong customer orientation, we have made
significant inroads into the formal banking consortia of a number of Indian companies
including multinationals, domestic business houses and prime public sector companies.

The corporate banking segment of banks typically serves a diverse range of clients, ranging
from small- to mid-sized local businesses with a few million in revenues to large
conglomerates with billions in sales and offices across the country. Commercial banks offer
the following products and services to corporations and other financial institutions:

 Loans and other credit products – this is typically the biggest area of business within
corporate banking, and as noted earlier, one of the biggest sources of profit and risk
for a bank.
 Treasury and cash management services – used by companies for managing
their working capital and currency conversion requirements.
 Equipment lending – commercial banks structure customized loans and leases for a
range of equipment used by companies in diverse sectors such as manufacturing,
transportation and information technology.
 Commercial real estate – services offered by banks in this area include real asset
analysis, portfolio evaluation, and debt and equity structuring.
 Trade finance – involves letters of credit, bill collection, and factoring. 
 Employer services – services such as payroll and group retirement plans are typically
offered by specialized affiliates of a bank.

Through their investment banking arms, commercial banks also offer related services to their
corporate clients, such as asset management and securities underwriters .
HDFC Bank, at the time of starting out a little more than two decades ago, had decided to
serve the top end of the market. The space was crowded then with government banks
dominating project finance and foreign banks catering to multinationals with their superior
products and service. HDFC Bank never built a large project finance book. Even today,
despite having a large balance sheet, it is predominantly into working capital loans. In
contrast, most banks' corporate portfolio is skewed towards project finance or term loans,
which are more risky.

The bank moved towards emerging as well as small and medium enterprises only in early
2000 after learning to serve big companies, the most demanding customers in the market.

"We now have a broad spectrum of products in wholesale banking such as cash management,
custodial services, investment banking , LCs (letters of credit) and guarantees," says Kaizad
Bharucha, Executive Director, HDFC Bank.

3.12 NRI BANKING:-

 With a view to attract the savings and other remittance into India through banking channels
from the person of Indian Nationality / Origin who are residing abroad and bolster the
balance of payment position, the Government of India introduced in 1970 Non-
Resident(External) Account Rules which are governed by the Exchange Control Regulations.

The funds held in Non-Resident (External) Accounts (NRE Accounts) qualify for certain
benefits like exemptions from taxes in India, free repatriations facilities, etc. 

Deposit types :-

 NRI-Banking facilitates the NRI customer to open the following account types.  
 NRE (Non Resident External Accounts)

It can be in the form of Savings, Current or fixed deposits in Indian rupees. The funds in this
account are fully reparable.

NRO (Non Resident Ordinary Accounts)

It can be in the form of Savings, Current or Fixed Deposits in Indian Rupees. The funds in
this account are not reparable (only interest accrued is reparable). 
3.13 HUMAN RESOURCES DEPARTMENT:-

“Human Resource Management function that helps managers recruit, select, train and
develop members for an organization. Obviously, HRM is concerned with the people’s
dimension in organizations.

Work force of an Organization is one of the most important inputs of components. It is said
that people are our single most important assets. Because of the unique importance of
HUMAN RESOURCE and its complexity due to ever changing psychology, behaviour and
attitudes of men and women at work, in all business concerns, there is one common element.
I.e. Human personnel function, i.e., manpower management function is becoming
increasingly specialized. The personnel function or system can be broadly defined as the
management of people at work- management of managers and management of workers.
Personnel function is particularly interested in personnel relationship and interaction of
employees-human relations.

In a sense, management is personnel administration. Management is the development of

people, and not mere direction of material resources. Human capital is the greatest asset of a
business enterprise. The essential ingredient of management is the leadership and direction of
people. Each manager of people has to be his own personnel man. Personnel management is
not something you really turn over to personnel department staff.

Responsibilities of Human Resource Department:

Ø HRD maintain daily attendance record through branch manager via E-mail.
Ø Take decisions for approval regarding leave notes.
Ø He takes the decision related to the recruitment, selection and training of the candidates.
He talks to the consultant related to the recruitment of the qualified candidates. He also
does screening of the candidates, shortlist the candidate and takes the first round of the
interview.
Ø He maintains the database of the candidates to come for an interview. He also maintains
personal file of each employee. He also completes the joining formalities of each new
employee.
Ø They are taking surprising visit in every branch and collect information about employees.
Ø He is responsible for the monthly salary of the employees as per their attendants and
passing to the Branch Manager.
  Human Resource planning:

This is handled by doing the planning at the beginning of every year. At the end of the year,
the Human Resource department from each Branch receives the requirement for the person
for whole year. Then the planning of recruitment and training is done by training manager
and recruiting manager which is approved from Head of HR Department.

 Recruitment:

Recruitment is a process of searching for prospective candidates for the given job in the
industry. As we know it is very important for an industrial concerns to have efficient and
effective personnel with right quality and at right time and at right place available whenever
they are needed. Every organization needs employee time by time because of promotion or
retirement of an employee. For this purpose an organization need to search for the right
candidate. And so it needs to encourage this type of right candidates whenever they require.

 Sources of Recruitment

 Personal data of candidates and data bank maintain by the HR Department

 Campus Recruitment.
 Company’s own website.
 Placement consultants.
 Advertisement in the newspapers like Times of India, Gujarat Samachar.
 Employee reference.

Recruitment Process

Applicant Profile Shortlist Screening Interview


pool Check
  Selection:-

Ø Selection is the process of taking individuals out of the pool of job applicants with
requisite qualifications and competence to fill jobs in the organization. It is define as the
process of differentiating between applicants in order to identify and hire those with a
greater likelihood of success in a job.
Ø Selection is based on probation base, they are taking experienced person for 6 months’
probation and for fresher the probation period is 1 year.
Ø While the selection of the senior level post, is taken by head office at Mumbai.

 Training and Development:-

Ø Training aims at increasing the aptitudes, skills and abilities of workers to perform
specific job. It makes employees more effective and skilful. In present dynamic world of
business training is more important there is an ever present need for training men. So that
new and changed techniques may be adopted. A new and changed technique may be
taken as an advantages and improvement affected in the old methods.
Ø Training is learning experience that seeks relatively permanent change in an individual
that will improve his/her ability to perform on the job.
Ø They provide “on the job” training to their employees in the branch as they select these
employees for selling various products of bank by direct marketing. Whenever they select
new candidates for any post, they use to give them on the job work.
Ø In case of sales persons to distribute their various products, in the beginning the person
has to work under the observation of his senior then they have to go in market to have
their own experience.
Ø The time for training program for the candidate is depends up on the relevant position of
his work area. They also provide training related to customer care and communication.

 Performance Appraisal:-

Ø An organization’s goals can be achieve only when people put in their best efforts.
Performance appraisal may be understood as the assessment of an individual’s
performance in a systematic way. It is define as the systematic evaluation of the
individual with respect to his/her performance on the job and his/her potential for
development.
Ø To appraise the performance of the employee they have developed a credit system on the
basis of the given target to the employee. After appraising the performance of the
employee they put the grade of each employee in the following grade criteria.

 Employee Remuneration and Incentive Payments:-

Ø Remuneration is the compensation an employee receives in return for his/her contribution

to the organization. Remuneration occupies an important place in the life of an employee.
Ø At HDFC, remuneration of an employee comprises – wages and salary, incentives.

 Wages and Salary:-

Ø A part from various incentives and benefits, the personnel are compensated only in terms
of wages and salaries. A proper compensation in terms of this is necessary for motivation
employees for their continuous
Ø Improved performance. For all this, it is required that wages and salaries are provided
well by organization.
Ø Wages and salary refers to the establishment and implementation of sound policies and
practices of employee’s comp.ensation. A wage and salary is the remuneration paid for
the service of labor in production periodically to an employee. The bank is in service
industry so the salary is given on monthly basis. They use to hire certain salesman on
commission base and they are provided their salaries on commission base. While other
permanent staff are being given monthly salaries. As HDFC bank is reputed bank in
market the pay scale are as per the standard.
Ø Sales executives (coax) are being given salary of 6000 to 8000 per month. While sales
officer’s salary ranges from 15000 to 18000 per month. HDFC bank is also giving
attractive incentives as per the target. The salary of branch manager is around 35000 per
month.
 Incentive:-
In HDFC, employees get incentives on the basis of the target given to each employee and
their area of work. They have developed the incentive structure for the employees on the
basis of point system. All the employees get the incentive in the form cash reward.
  Employees benefit:-

The employees of HDFC automatically become HDFC bank salary account Holders with
special benefit and privileges and receive instant salary credit. The benefit include
international debit card, corporate card with individual liability (CCIL), access to phone
banking and internet banking, demat accounts, and host of other services to complement their
savings account. Here are some of the features of HDFC Bank’s salary account.

 Motivation:-

Motivation is willingness to do something conditioned by this action’s ability to satisfy some

need. Motivation is given by the responsible person, like branch manager or team manager
for better performance in the department.

 Disputes and their resolution:-

Disputes are common in organization. In practice, disputes mainly relate to the target only
because if any employee is not achieving target he/she will not eligible for incentive which
creates frustration among them.

Every employee is free to talk to the head of the particular department if they have any
problem related to the job. Firstly, the problem is solved by the head of the particular
department and if the problem does not solved by the head of that department then it is
addressed to the HR Manager.

3.14 INTRODUCTION OF FINANCE DEPARTMENT:-

In this modern era it is very easy to know how much important the finance is in the business.
As current position of the market is totally different from ancient where it was very easy to
get the finance. But now a days it is not so, it is very difficult task to raise funds from
market. As today people are facing lot of problem and have less confidence on the market so
it is difficult to raise fund without proper planning.

For the bank as it is a Financial Institution we can consider finance as lifeblood of this
business. The company should manage to get sufficient finance. The company should use to
keep proper planning for the finance of its own and also of the large no. of depositors who are
there with the bank. We can define financial management as a task of acquisition and
utilization of funds needed in the business in a manner so that organizations goal can be
achieved. In HDFC Bank, its chief Financial Officer and Treasurer manage the finance. Due
to proper policies and separate management the company can have proper operation of
finance.

 ORGANIZATION OF FINANCIAL ACTIVITIES OF BANK:-

For the bank finance itself is the product now it is not an easy task to manage this finance.
As bank has to keep watch on the deposits of its millions of customers and also it has to
manage its own large financial base. As in recent it is popular “No finance no business”, for
the bank “Finance itself is business”. There are different types of organizational structure
such as group organization, line organization, line and staff organization. HDFC Bank has
line of authority and line of authority is vertical i.e. authority passes from top to bottom and
responsibility passes from bottom to top level management.

As HDFC Bank is very big company and it has large cliental base so it is very difficult and
complicated to manage its finance in proper way. There we need of concrete and proper
policies to have proper management of it. Because of big size of the bank one cannot manage
all the accounts of it alone. So, company has to appoint many different persons so that there
is proper maintenance of the funds of different persons is possible.
3.15 ACHIEVEMENT:-

AWARD

YEAR- 2009

EUROMONEY 'BEST BANK IN INDIA'

AWARDS 2009
Economic Times Most Trusted Brand - Runner Up
Brand Equity &
Nielsen Research
annual survey
2009
Asia Money 2009 'Best Domestic Bank in India'
Awards
IBA Banking 'Best IT Governance Award - Runner up'
Technology
Awards 2009
Global Finance 'Best Trade Finance Bank in India for 2009
Award
IDRBT Banking 'Best IT Governance and Value Delivery'
Technology
Excellence Award
2008
Asian Banker 'Asian Banker Best Retail Bank in India Award 2009 '
Excellence in
Retail Financial
Services
 YEAR-2008

FINANCE ASIA 'BEST BANK AND BEST CASH MANAGEMENT BANK'

COUNTRY
AWARDS FOR
ACHIEVEMENT
2008
CNN-IBN 'Indian of the Year (Business)'
Nasscom IT User 'Best IT Adoption in the Banking Sector'
Award 2008
Business India 'Best Bank 2008'
Forbes Asia Fab 50 companies in Asia Pacific
Asian Banker Best Retail Bank 2008
Excellence in
Retail Financial
Services
Asiamoney Best local Cash Management Bank Award voted by Corporates
Microsoft & Security Strategist Award 2008
Indian Express
Group
World Trade For outstanding contribution to international trade services.
Center Award of
honour
Business Today One of India's "Most Innovative Companies"
Financial Express- Best Bank Award in the Private Sector category
Ernst & Young
Award
Global HR 'Employer Brand of the Year 2007 -2008' Award - First Runner
Excellence up, & many more
Awards - Asia
Pacific HRM
Business Today 'Best Bank' Award
3.16 VISION & MISSION:-

 MISSION

I. World Class Indian Bank

II. Benchmarking against international standards.
III. To build sound customer franchises across distinct businesses
IV. Best practices in terms of product offerings, technology, service levels, risk
management and audit & compliance

 VISION STATEMENT OF HDFC BANK

The HDFC Bank is committed to maintain the highest level of ethical standards, professional
integrity and regulatory compliance. HDFC Bank’s business philosophy is based on four core
values such as:-

1. Operational excellence.
2. Customer Focus.
3. Product leadership.
4. People.
The objective of the HDFC Bank is to provide its target market customers 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 needs of customers who seeks distinct financial
solutions, information and advice on various investment avenues.
3.17 SWOT ANALYSIS:-

MEANING:-

SWOT Analysis is a powerful technique for understanding your Strengths and Weaknesses,
and for looking at the Opportunities and Threats you face.Used in a business context, it helps
you carve a sustainable niche in your market. Used in apersonal context, it helps you develop
your career in a way that takes best advantage of your talents, abilities and opportunities.
 SWOT ANALAYSIS OF HDFC BANK

 STRENGTH

 Right strategy for the right products.

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

 WEAKNESSES

 Some gaps in range for certain sectors.

 Customer service staff need training.
 Processes and systems, etc.
 Management cover insufficient.
 Sectorial growth is constrained by low unemployment levels and competition
for staff 

 OPPORTUNITIES

 Profit margins will be good.

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

 THREATS

 Legislation could impact.

  Great risk involved
 Very high competition prevailing in the industry.
 Vulnerable to reactive
 attack by major competitors
 Lack of infrastructure in rural areas could constrain investment.
 High volume/low cost market is intensely competitive.

 KEY POINT

SWOT Analysis is a simple but powerful framework for analyzing company's Strengths and
Weaknesses, and the Opportunities and Threats you face. This helps you to focus on your
strengths, minimize threats, and take the greatest possible advantage of opportunities
available to you.
4. RESEARCH METHODOLOGY:-

4.1 MEANING:

Research methodology is way to systematically solve the research problem. It may be

understood as a science of studying now research is done systematically. In that various steps,
those are generally adopted by a researcher in studying his problem along with the logic
behind them.

It is important for researcher to know not only the research method but also know
methodology. The procedures by which researcher go about their work of describing,
explaining and predicting phenomenon are called methodology. Methods comprise the
procedures used for generating, collecting and evaluating data. All this means that it is
necessary for the researcher to design his methodology for his problem as the same may
differ from problem to problem.

Data collection is important step in any project and success of any project will be largely
depend upon now much accurate you will be able to collect and how much time, money and
effort will be required to collect that necessary data, this is also important step.

Data collection plays an important role in research work. Without proper data available for
analysis, you cannot do the research work accurately

Research is a careful investigation or inquiry especially through search for new facts in
branch of knowledge: market research specifies the information. Required to address these
issues: designs the method for collecting information: manage and implements the data
collection process analyses the results and communicates the finding and their implications.
Research problem is the one which requires a researcher to find out the best solution for the
given problem that is to find out the course of action, the action the objectives can be
obtained optimally in the context of a given environment.
4.2 RESEARCH DESIGN:-

A framework or blueprint for conducting the research project. It specifies the details of the
procedures necessary for obtaining the information needed to structure and/or solve research
problems. A good research design lays the foundation for conducting the project. A good
research design will ensure that the research project is conducted effectively and efficiently.
Typically, a research design involves the following components, or tasks:  Define the
information needed.

It describes the data collection method, the sampling plan, the tools of investigation, planning
and testing of questionnaire and the limitations of the study. The study requires the data to be
collected from two different sources i.e. the primary source and the secondary source. The
primary data is collected with the help of structured questioners which is being modified &
reliable and the secondary data through the various journals, newspapers and websites.

 Design the research.

 Specify the measurement and scaling procedures.

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

 Specify the sampling process and sampling size.

 Develop a plan of data analysis.

4.3 VARIABLES OF THE STUDY:-

The SERVQUAL model was first introduced in 1985 and it is one of the popular tools used
to measure service quality. SERVQUAL Model measures the gap that exists between
customer expectation and actual service received from the customer. This model consists of
five service quality dimensions and they are:
1. TANGIBLES-Tangibles refer to the factors which represents the physical features of the
bank. They are important for banking business as tangibles make the indelible first
impression during face to face contact between the customer and the bank. Impressive
tangibles fill the customers with confidence that they are dealing with the bank where their
financial interests are safe and secure. Examples of tangible factors are the use of cutting –
edge technology and equipment, modern amenities and physical facilities for customers
within bank premises, appearance and deportment of bank personnel, and above all the
physical features of bank building and inner layout which presents an ambience attractive and
appealing to customers.

2. RELIABILITY- Reliability refers to the customers’ perception with regard to the

redemption of commitment by bank to render the service honestly, sincerely, timely, and
satisfactorily as envisioned by the customer. Factors included in the reliability dimensions are
such as, ‘performing what is promised’ and doing it ‘at the promised time’ by the bank. Most
importantly, reliability perception aims at inculcating in customers’ mind the belief that the
financial records and statements as maintained and presented to customers by bank are error
free, accurate and dependable.

3.RESPONSIVENESS -The ‘Responsiveness’ dimension of service quality includes factors

conditioning the customers’ perception with regard to banks’ attention and action to issues
related to customers. Factors reflecting to responsiveness are rendering instant services,
quickness in attending to problems, promptness in taking action, sagaciousness in decision
making, disposition of grievance within committed time etc. With the advancement of
technology, customers expect that their problems will be responded as soon as possible. Lack
of responsiveness would make the customers switch over to the other banks.

4.ASSURANCE -Assurance refers to the service quality dimension that makes the customer
sure that the transaction dealings are fair and safe with the bank. Assurance involves factors
like trust on the bank employees, keeping privacy of customers’ transactions, providing
access to information to genuine customers etc. An overall feeling of confidence in customers
that bank employees have professional knowledge and experience and render answer to
customers queries which are genuine and trustworthy is also an important attribute of
assurance.
5. EMPATHY- The service quality represented by Empathy indicates the ability of the bank
to understand customers’ feelings and the situations they are in for help and assistance. The
attribute of empathy demands an inclination in the attitude of bank personnel to give personal
consideration and priority attention to customers. It deals with the quality of personal
interaction of the employees with their customers as well as sympathetic response to their
queries and complaints.

6.CUSTOMER SATISFACTION- Customer satisfaction is defined as “the individual’s

perception of the performance of the products or services in relation to his or her
expectations”(Schiffman&Kanuk) Customer Satisfaction helps in measuring whether the
products and services supplied by company meet or further exceed the expectations of
customers. Customer satisfaction is an indicator which shows whether the customers will
make repurchase decision or not along with their loyalty (Boonlertvanich, 2011). It also
describes that the feeling of happiness which is gained by achieving his or her goals can be
considered as satisfaction.

7. CUSTOMER LOYALTY- In early days’ loyalty was viewed as brand royalty of tangible
goods. But later on, many studies were carried out and the field of loyalty was expanded.
However, only few studies covered the area of customer loyalty of services (Oliver Richard,
1997) . Customer loyalty in a general is somewhat that consumer may reveal to a particular
brand and service (Uncles et al., 2003) .Simply, customer loyalty can be explained as power
of relationship between relative and repeated patronage of an individual. Dick &Basu (1994)
highlighted that loyalty is based on customer attitude as well as behavioral phenomenon.
Customer loyalty has two dimension and on the basis of these two dimensions four types of
loyalty were developed and they are:

 True Loyalty
 Latent Loyalty
 Spurious Loyalty
 No Loyalty

The figure below illustrates the relationship between service quality and customer
satisfaction, which leads to customer loyalty. From the above figure, it is crystal clear that
service quality is determined on the basis of customer’s perception of service quality
dimensions such as reliability, assurance, responsiveness, empathy and tangibility. So service
quality is based on evaluation of these dimension. Whereas, satisfaction is comprehensive in
nature and factors such as product quality, price, service quality and other situational and
personal factors have a great impact. Therefore, service quality and satisfaction are correlated
to each other, which leads to customer loyalty.

4.4 Data Collection: -

The objectives of the project are such that both primary and secondary data is required to
achieve them. So both primary and secondary data was used for the project. The mode of
collecting primary data is questionnaire mode and sources of secondary data are various
magazines, books, newspapers, & websites etc.

1. Primary Data: The primary data was collected to measure the customer satisfaction and
their perception regarding HDFC Bank. The primary data was collected by means of
questionnaire and analysis was done on the basis of response received from the
customers. The questionnaire has been designed in such a manner that the consumer’s
satisfaction level can be measured and consumer can enter his responses easily.
2. Secondary Data: The purpose of collecting secondary data was to achieve the objective
of studying the recent trends and developments taking place in banking.

Newspapers, magazines, journals and internet (details in bibliography)

Sampling Unit: - The sampling unit is an individual (non-staff member) who is having
account in HDFC BANK.

Sample Size: -The sample size for the study was 80 individuals, non-staff members

Sampling Procedure: - Due to the time and resource constraints the convenience sampling
technique was used. The individuals were selected according to convenience to fill the
questionnaires
5 DATA ANALYSIS & INTERPRETATIONS:-

 INTERPRETATIONS:-

From the above chart it is clearly show that majority of the respondents are
male 54.9% and 45.1% Respondents are female.
 INTERPRETATIONS:-

From the above graph it is shows that the majority of the respondents are the age group of
25-35 i.e 27.7% respondents are the age of 25-35 , 26.5% of respondents are the age
group of 35-45 , 24.1% respondents are the age group of less than 25 , 18.1% respondents
are the age group of 45-55.
INTERPRETATIONS:-

From the above graph it’s show that the majority respondents i.e:- 42.2% of the respondents
are doing service, 20.5% respondents are doing business , 18.1% respondents are
professionals and 14.5% respondents are students .
 INTERPRETATIONS:-

From the above graph it is clearly shows that the majority i.e 34.9%
respondents annual income is between 1,50,000 to 3,00,000 and 20.5%
redpondents income is between 50,000 to 1,50,000 only 8.4% respondents
annual icome is 5,00,000 and above.
 INTERPRETATIONS:-

From the above graph it is clear that majority of the respondents are part of
the HDFC bank from the last 3 TO 5 years i.e 40.2% , 29.3% respondents
are part of the HDFC bank from less than one year, 25.6% respondents are
parts of HDFC bank last 1 to 2 years and remaining 4.9% of the respondents
are dealing with the bank more than 5 years.
  INTERPRETATIONS:-

From the above chart it is clear that the majority respondents are using saving
account facility in the bank i.e 66.3% , 28.9% respondents are using fixed
deposit facility in the bank , 21.7% respondents are using current account
facility in the bank and remaining 1.2% respondents are using NRI account.
  INTERPRETATIONS:-

From the above chart it is clear that the majority of the respondents are dealing
with the sbi bank i.e 56.6%, 32.5% respondents are dealing with the hdfc bank
and remaining respondants are dealing with bank of india ,bank of baroda,
union bank and saraswat bank.
  INTERPRETATIONS:-

From the above chart it is clear show that the majority respondents are given
above average rates to Access facility and communication services of the bank.
 INTERPRETATIONS:-
 From the above chart it is clear show that the majority respondents are
given above average rates to confidentiality facility and courtesy services
of the bank.
 INTERPRETATIONS:-
 From the above chart it is clear show that the majority respondents are
given above average rates to reliability and security services of the bank.
 INTERPRETATIONS:-

From the above chart it is clear show that the majority respondents are given
above average rate to responsiveness service of the bank and also given
above average rate to waiting time for the services.
 INTERPRETATIONS:-

From the above chart it is clear shows that the majority of the respondents
are do not want to move the other bank i.e 46.3% , 29.3% respondents may
be move to other bank and remaining 24.4% respondents wants to move the
other bank.
 INTERPRETATIONS:-

From the above chart it is show that the majority respondents reason for
chose the HDFC bank is for the traditional bank account in the bank i.e
41.5%, 35.4% respondents reason for chose bank is for excellent service
offered by the bank, 32.9% respondents reason for chose the bank is net
banking facility and remaining 1.2% respondents chose the bank for fastest
service.
  INTERPRETATIONS:-

From the above chart it is show that the majority 54 respondents like overall service of the
HDFC bank i.e 66.7%, 12 respondents like overall service of HDFC bank i.e 14.8%, 9
respondents are like overall service of the HDFC bank i.e 11.1%, 4 respondents are like
overall service of the HDFC bank i.e 4.9% and remaining 2 respondents like overall service
of HDFC bank i.e 2.5%
6. FINDINGS OF THE STUDY:-

► Majority of the customers are satisfied with HDFC Bank.

► Majority of the customers are aware of services and extra services offered by HDFC
Bank. But not all the services.

► The majority of the customers found services of the bank are average.

► Majority of the respondents are found the bank is average in maintaining the good
customer relationship.

► Majority of the respondent said that they are facing the problem of timeliness and rest
are facing problem of customer relationship and infrastructure.

► The perception of the majority of the customer regarding the bank is good because
majority of the customers are satisfied with the bank and they also recommend the products
of the bank.

► The most preferable extra service is ATM’s and the less preferable services are bills
payment, net banking and phone banking.

► The majority of customers are more interested in FD’s, mutual funds and saving a/cs.

► The majority of the customers are satisfied with the dealing of the officials upto some
extent.

► Main factor that attract customers towards bank is the services of the bank.

► Services that are most used by the customer are saving a/c, FD’s, current a/c and
loans.
7. SUGGESTIONS & RECOMMENDATIONS:-

As it is said, there’s always room for improvement keeping this in mind customer satisfaction
level could be increased at HDFC Bank by focusing on the following:

 Empowering the employees.

 The Banks should make some efforts to improving good relationship with customer
 The banks should make its procedures less time consuming
 Providing great self – service support.
 Segment the client base and create personalized customer experiences.
 Staying consistent across all touch points.
 Educating the customers on financial literacy.
 Improving financial technology.
 Not just being a lender, but also being an advisor for small businesses.
 The bank should enhance their services according to the needs of customers.
8. LIMITATIONS OF THE STUDY

It is said, “Nothing is perfect” and if the quite is true, I am sure that there would be few
shortcoming in this project also. Sincere efforts have been made to eliminate discrepancies as
far as possible but few would have reminded due to limitations of the study. These are:

a. The research was carried out in a short period.

b. Limited sample size.
c. The information given by the respondent might be biased some of them might
not be interested to given correct information.
d. Some of the respondents of the survey were unwilling to share information.
9.. CONCLUSION:-

Overall HDFC Bank has a great working environment. All the new entrant is trained
completely on the services and products offered by HDFC Bank. The advisor/sales manager
of HDFC Bank market the policies better due to the extensive training that is given to them.
HDFC should attempt in creating more awareness by advertising itself in India. A bit more of
focus on customer satisfaction, slight improvement in sales techniques, an increase in
advertising activities and a little modification to the existing portfolio would surely help
HDFC Bank to capture a larger market in India. At the end I would like to conclude that The
Indian banking market is growing at an astonishing rate, with Assets expected to reach US$1
trillion by 2010. HDFC bank had a network of 1,142 branches And 3,295 automated teller
machines in 528 cities in India.. The majority of customers are satisfied. But the bank should
target on the rest of the customers who are not satisfied. The customers are aware about the
bank’s services but the Bank should try to create more awareness among people. HDFC Bank
should lay more stress on advertisements, both in print as well as in other media for this
purpose. Number of formalities should reduce, as customer feels irritated with lots of
formalities and it will save the time of customer and Bank also.
10. BIBLIOGRAPHY :-

BOOKS:

1. Jeffrey H. Gitomer, Customer satisfaction is worthless, Customer loyalty is priceless, Bard

press, 1998.

2. Ajit Rao, Subhash Chandra, The little book of big customer satisfaction measurement,

SAGE publications India, 2013.

3. Nigel Hill, Greg Roche, Rachel Allen, Customer satisfaction: the customer experience

through the customer's eyes, The leadership factor, 2007.

4. Nigel Hill, John Brierley, Rob Macdougall, How to measure customer satisfaction,

Gowers, 2003.

5. Richard F. Gerson, Measuring customer satisfaction, Crisp publications, 1993.

11. WEBILOGRAPHY:-

Websites:

www.en.wikipedia.com

www.hdfcbank.com

www.bnknetindia/com/banking/finance

www.hdfc/products/finance

www.google.com

www.moneycontrol.com

www.marketresearch.com
12. QUESTIONNERS:-

I. GENDER:-

 MALE
 FEMALE

II. WHAT WAS THE SINGLE MOST IMPORTANT REASON THAT YOU
CHOOSE THIS PARTICULAR BANK

 I HAVE A TRADITIONAL BANK ACCOUNT WITH THE SAME BANK

THE BRAND NAME OF THE BANK
 THE EXCELLENT SERVICE OFFERED BY THIS BANK ATM SERVICE
 NET BANKING FACILITY LOCATION ADVANTAGE
 OTHERS

III. SINCE HOW MANY YEARS YOU ARE DEALING WITH THIS BANK

 LESS THAN 1 YEAR

 1 TO 2 YEARS
 3 TO 5 YEARS
 MORE THAN 5 YEARS

IV. AGE

o LESS THAN 25
o 25-35
o 35-45
o 55 ABOVE
 V. OCCUPATION

I. SERVICE
II. BUSINESS
III. PROFESSIONAL
IV. STUDENT
V. HOUSE WIFE

VI. ANNUAL INCOME

 LESS THAN 50,000
 50,000 TO 1,50,000
 1,50,000 TO 3,00,000
 3,00,000 TO 5,00,000
 5,00,000 AND ABOVE

VII. BANK YOU ARE DEALING WITH ?

o HDFC
o SBI
o OTHERS

VIII. WHICH BANK FACILITY YOU ARE AVAILING IN THE BANK

 SAVING ACCOUNT
 CURRENT ACCOUNT
 FIXED DEPOSIT ACCOUNT
 NRI ACCOUNT
IX. HOW WOULD YOU RATE THE FOLLOWING BANKING SERVICES QUALITY
ON SCALE OF 1-5 PROVIDED BY HDFC BANK 1- EXCELLENT,2-GOOD,3-ABOVE-
AVERAGE,4-AVERAGE,5—BELOW AVERAGE

1 2 3 4 5

 ACCESS
 COMMUNICATION
 CONFIDENTIALITY
 COURSETY
 RELIABILITY
 SECURITY
 RESPONSIVNESS
 WAITING TIME

X. IF YOU PROVIDED WITH BETTER SERVICES BY OPTIONAL BANK. WOULD

YOU LIKE TO MOVE TO OTHER BANK?

o YES
o NO
o MAY BE

XI. HOW WOULD YOU RANK OVERALL SERVICE OF HDFC BANK

o 1
o 2
o 3
o 4
o 5