A

PROJECT REPORT
ON
“A COMPARATIVE STUDY OF
CUSTOMER SATISFACTION AND BANK
PERFORMANCE SURVEY”

AT
HDFC BANK & KOTAK MAHINDRA BANK

-SUBMITTED BY-

VEDANT SANTOSH RAHATEKAR

SYBBA (SEMESTER-3)

-SUBMITTED TO-
SAVITRIBAI PHULE PUNE UNIVERSITY
FOR THE PARTIALFULFILLMENT OF BACHELOR
OF BUSINESS ADMINISTRATION(BBA)

- UNDER THE GUIDENCE OF –

Prof. SHREEYA GOKHALE

KTHM COLLEGE, NASHIK-

422004
2022-2023
 CERTIFICATE

This is to certify that Mr. VEDANT SANTOSH RAHATEKAR Roll No. [89] has worked
and duly completed his project work for the Degree of Bachelor of Business Administration
under the faculty of Commerce in the subject of customer satisfaction survey and his project is
entitled “A COMPARATIVE STUDY OF CUSTOMER SATISFACTION AND BANK
PERFORMANCE SURVEY AT HDFC BANK AND KOTAK MAHINDRA BANK”
under my supervision.

I further certify that the entire work has been done by the learner under my guidance and that
no part of it has submitted previously for any degree of diploma of any University.

It is his own work and facts reported by his personal findings and investigation.

Date- / /202

Mrs. Ashwini Kohok Dr. V.B. Gaikwad

HOD Principal

Prof. Shyeeya Gokhale

Project Guide
 ACKNOWLEDGEMENT

I take this opportunity to express my sincere gratitude to all who have directly and indirectly
contributed to the completion of my project

At the outset of this report I wish to thank the director of our institute DR. V. B. Gaikwad Sir,
my sincere thanks to my project guide, Prof. Shreeya Gokhale Madam for her constant
guidance and support through the project.
Lastly, I am grateful to my parents who have been my mentor and motivators. I am also
thankful to my friends who have been directly or indirectly involved in successful completion
of this project.

VEDANT S. RAHATEKAR
(SYBBA)
 INDEX

CHAPTER CONTENTS PAGE

NO.
1. EXECUTIVE SUMMARY 5

2. INTRODUCTION 6-7

3. INDUSTRY PROFILE 8-11

4. COMPANY PROFILE 12-18

5. RESEARCH METHODOLOGY 19-20

6. DATA ANALYSIS & 21-27

INTERPRETATIONS
. COMPARATIVE STUDY 28-29

7. FINDINGS 30

8. SUGGESTION 31

9. CONCLUSION 32

10. WEBSITES 33

ANNEXURE
 *CHAPTER ONE*

EXECUTIVE SUMMERY

The project report is to undertake customer satisfaction and customer relations

with a bank. This report will provide an assessment and analysis of the customers
satisfaction and bonding level. Service performance and staff behavior of the bank
using responses to the customer satisfaction survey questionnaire and visits to the
bank.

In the analysis, customers’ hand written feedback was used to get a critical review
of service provided by the bank. The feedback fetched us to a clear view of overall
performance of it.

The project was carried out to study out the service-related position of a bank and
our objective is studying the customer satisfaction and bonding of a customer with
the bank.

For this study, exploratory research design of a questionnaire and bank visits are
used. Secondary data is collected from banks magazines, final report and
customers online reviews and feedbacks. On the basis of the secondary data
analysis and the extensive analysis of the primary data, interpretations were drawn
for the questions and then conclusion is drawn.

This organization is a private bank, publicly traded company or limited bank.

The project carried out customer satisfaction analysis with the help of questionnaire
feedback at HDFC BANK. The good bonding level with customers is a wealth for
any bank. The performance of the bank against the standard of services they
provide. And asked some questions to the bank manger of HDFC BANK And
KOTAK MAHIDRA BANK

6
 *CHAPTER TWO*

INTRODUCTION

PROJECT TITLE;

“A COMPARATIVE STUDY OF CUSTOMER SATISFACTION AND BANK

PERFORMANCE SURVEY AT HDFC BANK AND KOTAK MAHINDRA BANK”

In the age of globalization, accomplishing the higher level of customer satisfaction

is the challenging task especially in the service sector. In order to face this
challenging task, many organizations have started to improve their service quality.
Service quality is one of the serious components in any service sector because
service quality helps to maintain competitive advantages in the market place.

Therefore, service quality is the strategic tool to reinforce competitive advantages

and increase profitability in business. So many service sectors are using this
strategic component to attract and retain customers. Hence, service quality is
determined through customer satisfaction and customer satisfaction is determined
through customer bonding.

Similarly, in order to provide superior services to the clients, at first service

providers must understand how clients perceived and evaluated their services. After
that, service providers can assume clients are facilitated by various services
provided by service sectors. Affinity between both service quality and customer
satisfaction is highlighted in empirical research. Therefore, relationship between
customer satisfaction and service quality is very critical in service sector like
banking.

In case of banking sector, clients are attracted by high quality services. Moreover,
advancement in technology helps banking sector to upgrade their service quality
example: ATM, Online Banking, Mobile Banking, and Visa card. The point is that
clients are loyal to those products which have a greater value as compared to those
of competitors. Thus, banks can earn higher profit if they are one step ahead of their
competitors in terms of services provided by them. For this reason, every Banking
Institution Should Focus on Service Quality So as To Satisfy Customer and
Retain Customer Loyalty.

7
SCOPE OF THE STUDY
A study on customer satisfaction level regarding HDFC bank is a 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 services provided by the HDFC bank. The research covers the
customer’s opinions 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 customer satisfaction derived from banking
services of HDFC Bank in Nashik district of Maharashtra.

OBJECTIVES OF THE STUDY

The general objective of this proposed research is to study the customer satisfaction,
quality services and customer bonding in the Bank in India in Nashik district.
Moreover, the specific objectives are:

1. To identify the dimensions of that ensure maximum satisfaction for customers in

the banking sector.

2. To identify the factors affecting customer satisfaction.

3. To know the relationship of dimensions and customer satisfaction level regarding

to the Bank.

4. To access whether customer satisfaction mediates the relationship between

service quality dimensions, situational factors and customer bonding.

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

8
 *CHAPTER THREE*

INDUSTRY PROFILE

The Industry Basics: -

Banks play a key role in the entire financial system by mobilizing deposits from
households spread across the nation and making these funds available for
investment, either by lending or buying securities.
Today the banking industry has become an integral part of any nation’s economic
progress and is critical for the financial wellbeing of individuals, businesses,
nations, and the entire globe. In this article, we will provide an overview of key
industry concepts, main sectors, and key aspects of the banking industry’s
business model and trends.
A bank is a financial institution that provides banking and other financial services
to their customers. Banks are a subset of the financial services industry and play
an important role in the global economies.
They are a key player in stimulating economic growth. Banking is an important
undertaking. The movement of capital handled by banks allows economies to
grow and prosper. Businesses and governments need money to operate, and banks
act as intermediaries between the suppliers of funds and users of funds.

9
Customer Profiles: -

Banks are large and complex organizations. Their clients range from individuals
and institutions, all the way up to the governments and central banks of entire
countries. This industry builds and maintains financial relationships with a variety
of customers ranging from individuals to governments to supply financial products
and services. Given below are the major classification of banking customers.

• Individual Consumers
• Small Businesses & Traders
• Farmers & Rural Consumers
• Corporates and Corporations
• Banks – Domestic & International
• Governments
• Institutional Investors
• Non-Profit Organizations
• International Clients

Functions of the Banking Industry:-

The banking industry is growing rapidly. It's estimated that the assets of the 1,000
largest banks are worth almost $100 trillion. With the growth in the industry,
banks manage a diverse portfolio of functions. Bank provides various services and
offers many products. The following discussion explains the key functions of the
bank.

 Provide security to the savings of customers by safeguarding it.

 Offering interest on the deposits kept with it.
 Control the supply of money and credit.
 Arrange funds to the parties who need them by borrowing from parties who
have surplus.
 Encourage public confidence in the working of the financial system.
 Increase savings speedily and efficiently.
 Avoid focus of financial powers in the hands of a few individuals and
institutions.
 Set equal norms and conditions to all types of customers.

10
Banking Products & Services:-

The Banking sector offers several facilities to their customers including

safeguarding their money and valuables and providing them with numerous types
of credit loans to meet their many needs like home loans, consumer loans, personal
loans, etc. Banks also provide additional services like credit, and payment
services, such as checking accounts, money orders, and cashier's cheques. The
banks also offer investment and insurance products. The key operational activities
are listed below;

 Acceptance of Deposits
 Lending of Funds
 Clearing of Cheques
 Remittance of Funds
 Lockers & Safe Deposits
 Bill Payment Services
 Online Banking
 Credit & Debit Cards
 Overseas Banking Services
 Wealth Management
 Investment Banking
 Social Objectives

11
CENTRAL BANK OF INDIA:-

Reserve Bank of India (RBI)

The Reserve Bank of India, chiefly known as RBI, is India's central bank and
regulatory body responsible for regulation of the Indian banking system. It is
under the ownership of Ministry of Finance, Government of India.

It is responsible for the control, issue and maintaining supply of the Indian
rupee. It also manages the country's main payment systems and works to promote
its economic development.

Bharatiya Reserve Bank Note Mudran (BRBNM) is a specialized division of RBI

through which it prints and mints Indian currency notes (INR) in two of its
currency printing presses located in Nashik (Western India) and Dewas (Central
India). Coins are minted at the four Indian government mints at Mumbai, Alipore
(Kolkata), Saifabad (Hyderabad), Cherlapally (Hyderabad) and Noida (UP).

RBI established the National Payments Corporation of India as one of its

12
specialized division to regulate the payment and settlement systems in India.
Deposit Insurance and Credit Guarantee Corporation was established by RBI as
one of its specialized division for the purpose of providing insurance of deposits
and guaranteeing of credit facilities to all Indian banks.

*CHAPTER FOUR*

COMPANY PROFILE

HDFC Bank Limited is an Indian banking and financial services company headquartered in
Mumbai. It is India's largest private sector bank by assets and world's 10th largest bank by
market capitalization as of April 2021. It is the third largest company by market
capitalization of $122.50 billion on the Indian stock exchanges. It is also the fifteenth largest
employer in India with nearly 150,000 employees.

HDFC Bank was incorporated in 1994 as a subsidiary of the Housing Development

Finance Corporation, with its registered office in Mumbai, Maharashtra, India. Its first
corporate office and a full-service branch at Sandoz House, Worli were inaugurated by the
then Union Finance Minister, Manmohan Singh. It has a base of 1,52,511 permanent
employees as of 30 June 2022.

Location of Company:
The headquarter located in the India’s financial capital, Mumbai, Maharashtra, India

13
 Vision:
“to be the prefered provider of banking services for target retail a wholesale customer
segments”

Mission:

 HDFC Bank’s mission is to be a world class Indian bank.

 We are committed to satisfy our customers by providing world class services at affordable
price.

 The bank is committed to maintaining the highest level of ethical standards, professional
integrity, corporate governance and regulatory compliance.

 To achieve healthy growth in profitability, consistent with the bank’s risk appetite

 We commit ourselves to continue growth, to fulfill the aspirations of our customers,

Employees & Shareholders & all people related to the company.

Financial information: -

 Revenue – ₹1,67,695 crores (2022)

14
  Operating income – ₹68,798 crores (2022)

 Net income – ₹38,151 crores (2022)

 Total assets – ₹21,22,934 crores (2020)

 Total equity – ₹2,46,771 crores (2020)

Board of directors: -

Subsidiaries of HDFC; -

15
Products and services

HDFC Bank provides a number of products and services including

1. Wholesale Banking

16
 2. Retail Banking
3. Treasury
4. Auto Loans
5. Two-Wheeler Loans
6. Personal Loans
7. Loans Against Property
8. Consumer Durable Loan
9. Lifestyle Loan
10. Credit Cards

Along with these various digital products are PAYZAPP and SMARTBUY.

Awards;-

 2016
1] Best Banking Performer, India in 2016 by Global Brands Magazine Award
2] KPMG study of India's Best Banks, Bank of the year & best digital banking
initiative award 2016.

 2018
1] Company of the year: The Economic Times Corporate Excellence Awards
(2018)

17
  2019
1] Best Bank in India 2019, by Global magazine Finance Asia (2019)

 2020
1] Best Bank in India: Euromoney Awards (2020)
2] Best Bank in India: Finance Asia Country Awards. (2020)

 2021
1] Best bank in India: Finance Asia Country Awards (2021)
2] Best bank for SMEs: Asia money best bank awards (2021)

 2022
1] Best Bank In India: Euromoney Awards for Excellence 2022

KOTAK MAHINDRA BANK

KOTAK MAHINDRA BANK LIMITED is an Indian banking and financial

services company headquartered in Mumbai. It offers banking products and
financial services for corporate and retail customers in the areas of personal
finance, investment banking, life insurance, and wealth management. It is India's
third largest private sector bank by market capitalization as of November 2021. As
of February 2021, the bank has 1600 branches and 2519 ATMs.

Location of Company:
The headquarter located in the India’s financial capital, Mumbai, Maharashtra, India.
18
 Subsidiaries of KOTAK MAHINDAR BANK; -

Financial information: -

 Revenue – ₹58,882 crores (2022)

 Operating income – ₹16,719 crores (2022)

 Net income – ₹11,932 crores (2022)

 Total assets – ₹5,46,497 crores (2020)

 Total equity – ₹95,641 crores (2020)

Board of directors: -

19
20
 *CHAPTER FIVE*

RESEARCH
METHODOLOGY

“A careful investigation enquiry especially through search for new facts in any branch of
knowledge.”

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

understood as a science of study how research is done scientifically. The various steps that
are generally adopted by researcher in study his research problem along with the logic behind
them. It is necessary for the researcher to know not only the research method or techniques
but also the methodology.

Thus when we talk of research methodology we not only talk of the research methods but
also consider the logic behind the methods we use in the contest of our research and explain
why we are using a particular method or technique and why we are not using others so that
research are capable of being evaluated either by research himself or by others.

There is different source of collection data. This is the first stage in statistics. Before deciding
the source to collect the data one has to make a proper planning of investigation and the
purpose of inquiry.

 Primary Data: -

Primary data are original and first-hand information. The source of such information is the
individuals and the incidents around them generally.

Primary data is generated with the help of following:

 Information relating to the project was collected through the survey.
 More of the data is the hard copy form.
 Queries arising in due course of the project brought into the notice of concerned
21
 authority and necessary explanation and solutions are adapted.

 Secondary Data: -

The source of information through documents concerning individuals and institutions are
known as secondary data or documentary source.

Secondary data is generated with the help of following:

 Majority of information gathered from the banks magazines, final report and
customers online reviews and feedback.

Research Design:-

 Separating the satisfied and non-satisfied customers.

 Analyzing the feedback.
 Analyzing & interpreting the data.
 Research Finding

Research Question:-

It is challenge for the banking sector to provide them with the quality services by
identifying their needs, taking continuous feedback.
Hence, the major concerns of our study regarding customer satisfaction are:

A. What are the major factors affecting customer satisfaction ?

B.What is the level of customer loyalty in the bank ?
C.What are the factors associated with customer satisfaction in the bank?

22
 *CHAPTER SIX*

DATA ANALYSIS AND INTERPRETATION

Customer Questionnaire

Q. Name of Bank?

Customers Bank Name

6

3
2

H D FC BANK I C I C I BANK SBI OTH ER

Interpretation: -

The large number of customers is of HDFC BANK because of we conducted

the survey in HDFC BANK and other banks customers like ICICI BANK
and SBI are there for the interbank transactions.
23
Q. Are you satisfied with the services provided by your bank?

SATISFACTION LEVEL

VERY GOOD GOOD POOR

VERY POOR

Interpretation: -

The total majority number of customers is satisfied [9]. After that not
24
 satisfied customers are 3.

Q. Type of Bank Account You Have Opened?

Account Type

Savings account Current Account Joint Account

Interpretation:-

The majority of customers visited to the bank are Saving Bank Account
holders with number of 8 customers and their percentage is 67%. And
secondly the Current Account Holders with number of 3 and their percentage
is 25%. Lastly the Joint Account Holders with number of only 1 customer.

25
Q. are you satisfied with the net banking services of this bank?

Sati sfacti on of Net banking

6
5

Yes No n o t p r o v i d ed

Interpretation:-

The majority of customers are not satisfied with net banking services because
there are servers issue many times while transactions. And some are satisfied
26
with this service.

Q. How easy is it to find an ATM of your bank nearby your area or location?

Finding location of ATM

9

0
Very Easy Easy Very Hard

Finding location of ATM

Interpretation:-

The majority of customers says to find the HDFC BANKS ATM is very
easy. They are frequently available for the good ATM service.

27
Q. Are you satisfied with the behavior of the bank staff?

Staff Behavior

satisfied not satsfied

Interpretation:-

28
The majority of customers are satisfied with the behavior of the bank staff.

Q. Will you suggest this bank to others?

Suggest bank to others

Suggest bank to others
9

Yes No

29
Interpretation: -

The majority of customers says they will recommend this bank to others
because of the services and the values of the bank.
Manager Questionnaire

[Comparative Survey]

Questions HDFC BANK KOTAK MAHINDRA BANK

1. Types of loan services All types of loans, loans against
provided at your bank? assets, credit cards,
Jansamartha Portal, PM Mudra
Yojana, Stand Up India Scheme,
etc.
2. Is there any Portfolio Active, passive, discretionary,
Management at your and non-discretionary portfolio
branch? management.
Education, home, gold,
personal, loan against property,
agriculture, two-wheeler, etc.
Yes.
The bank offers only feveral
services in portfolio
mangement.

3. Does your bank charge Within limit: Rs. 20 /- plus taxes, Yes,
any transaction/ Above the limit Rs. 21/- plus 1000+0.5%.
processing fees on ATM taxes.
services?
4. Does your bank charge No such charges are applied on No.
any amount for foreign Foreign Currency Cash; Up to
transactions? USD 500 or equivalent - Rs.
500/- per transaction and above
USD 500 or equivalent - Rs.
1000/- per transaction and GST
is levied additionally.
5. Do you provide the Yes, access to ‘the sweep facility. Yes
facility of ‘Zero Balance An average of ₹ 5,000 is Kotak Mahindra bank have 0
A/c.’? What is the required and an average balance bank account.
minimum balance to be monthly balance of ₹ 10,000.
maintained by the If the amount goes below the
customer? Are there any minimum balance, a penalty of
charges incurred if the Rs. 150/- is applied.
amount goes below the
minimum balance?
6. At what rate of interest, FD: The rates range between RD
30
 do the FD and RD
accounts provide
returns?
7. Does the customer get
any locker facility? If yes,
what are the maintenance
charges?
8. What and how many
government schemes are
provided at your bank
(especially for SSIs and
MSIs)
9. Are any charges applied
on NEFT and RTGS?
10. Any special facilities for
minors or students?
11. Lastly, what measures do
you undertake for the
motivation and security,
and engagement of your
employees?
2.5% and 5.5% for regular
citizens and between 3% and
6.25% for senior citizens.
RD: The range of 3.5% to
5.5%, and for senior citizens, it
is in the range of 4%-6%.
The wide availability
of lockers from small, medium,
large, and extra-
large locker sizes at various
locations. Large Locker: INR
10000+service charges
PMEGP, PM SVANidhi,
CMEGP, NULM, MSY
UYEGP are some of the
schemes.
Charges up to Rs. 1,00,000/- are
Rs. 2/- per transaction and
above that are Rs. 10/- per
transaction.
(Both include GST).
For RTGS, Rs. 15/- is applied
minimum balance of Rs.
2,00,000/- and no upper ceiling.
Children loans, children’s
insurance, student education
loans, and children’s account.
Employee engagement Employee
wellness and safety, learning and
development, response and
mitigation, maintain high-level
of ongoing employee connect
and periodically obtain feedback
through dipsticks and surveys,
focus on various aspects of
employee wellness through
the HDFC Bank Cares’
initiative.
Indian Citizens = 6.40%.
Senior Citizens = 6.90%.
[For 30m]
FD
3.25-7.00%
Yes.
The charges for the same are
1500-5000/- per annum.
None.
For RTGS and NEFT, 2 lakhs
and below are Rs. 25/- per
transaction and above 10 lakhs
are Rs. 12/- per transaction.
We have junior account for
kids.
Else, all the facilities are the
same.
We provide RNRs, monthly
targets, achievement parties,
get-togethers, recognitions,
awards, incentives, bonuses,
gifts, refreshments, etc.
We also provide Mediclaim
health insurance, provident
funds, etc.
Special training and
educational programs and
lectures are arranged for the
employees too.
31
 *CHAPTER SEVEN*

FINDINGS

 The majority of customers satisfied with the bank’s services. But some are not.

 The more customers have opened the Savings Bank Account. And others have
Current Account and Joint Accounts.

 In net banking the bank is poor in nature because the customers saying the net
banking server of the bank is always down.

 ATM services have good feedback from the customers. They are available
frequently and easily.

 The good number of customers are satisfied with the behavior of the bank staff.

 Customers want to suggest this bank to other.

 The kotal Mahindra bank have the ₹0 balance Savings Account facility for their
customers.

 Comparatively the HDFC BANK is larger than KOTAL MAHINDRA BANK.

 The HDFC BANK provides more services than the KOTAK MAHINDRA BANK.

32
 *CHAPTER EIGHT*

SUGGESSIONS

 Management must concentrate on the not satisfied customers and find what are
their difficulties and solve them.

 Management also needs to concentrate on Saving and Current Bank Account

holders because they have majority.

 Company should maintain good quality and services in net banking. The big
number of customers are unsatisfied because the constant server issues.

 Management also need to improve the good behavior of the staff. Because some
customers are not satisfied with the behavior of staff.

 The HDFC BANK need to launch ₹0 balance Savings Account.

 .The KOTAK MAHINDRA need to improve the services.

33
 *CHAPTER NINE*

CONCLUSIO
N

The main purpose of conducting this research was to identify the important factors of
customer satisfaction and customer bonding in the context of HDFC Bank.
Many similar researches have been conducted in different setting like European,
America, African countries and in few Asian countries, but only few data are available
for India. Furthermore, banking sector in India is emerging. It plays vital role in the
economic development of the country.

 Reliability is the main factor that improves customer satisfaction.

 There is positive relationship between customer satisfaction and customer bonding in

HDFC Bank.

 Situational factors do not have positive impact on customer satisfaction.

 The majority of the respondents regarded that the most important reason for which
they are not satisfied is not getting good loan conditions.

 The another motive of this survey to findout the comparative performance of the
HDFC BANK and KOKAT MAHINDRA BANK.

34
 WEBSITES

1. www.wikipedia.org

2. www.hdfc.in

3. hdfcbank.com

4. google.com

5. Kottak Mahindra.com
6. kotak bank.com
7. konakonakotak.com

35
 Annexure:

Questionnaire for managers:

Que 1. Types of loan services provided by your bank. (Education, home, gold, etc.)

Que 2. Is there any Portfolio Management at your branch? If yes, then how?

Que 3. Does your bank charge transaction or processing fees on ATM services?

Que 4. Does your bank charge any amount for foreign transactions? If yes, how many?

Que 5. Do you provide ‘Zero Balance A/c’? What is the minimum amount that is to be
maintained by the customer? Are any charges applied if the amount resides in the
minimum balance amount?

Que 6. At what rate of interest do the FD and RD accounts provide returns?

Que 7. Does the customer get a locker facility? If yes, then the yearly charge, FD, and
interest on FDs?

Que 8. What and how many Govt. schemes are provided at your bank? (Especially for
SSIs and MSIs)

Que 9. Are there any charges incurred via NEFT and RTGS? If yes, then how many?

Que 10. Any special facilities/schemes for minors or students?

Que 11. Lastly, what measures do you undertake for the motivation, security, and
engagement of employees?

36
Questionnaire for customers:

Que.1: Name of Bank?

Que.2: Are you satisfied with the services provided by your bank? Yes, why/No, why?

Que.3: Type of bank account you have opened?

Que.4: Various facilities your bank provides? Are you happy with them? Yes, Why / No,
why?

Que.5: How easy is it to find an ATM of your branch nearby your

area/locality?

Que.6: Are you satisfied with the behavior of the bank staff?

Que.7: In your opinion, what are the things you like the most about your current bank?

Que.8: In your opinion, what are the things you like the least about your current bank?

Que.9: While considering a new bank, what would be the top two or three things you
would consider price, brand, innovation, quality value other?

37