TRAINING REPORT

ON
SERVICE QUALITY OF HDFC BANK
Submitted to:
Satyug Darshan Institute of Engineering and Technology
By:
TANYA BANSAL
Roll No :
Batch 2014 2017
In Partial Fulfillment of
Bachelor of Business Administration
(IIFSB)
MAHARSHI DAYANAND UNIVERSITY
ROHTAK (HARYANA)
(November, 2016)

Satyug Darshan Institute of Engineering and Technology

Bhupani Lalpur Road, Village Bhupani
Faridabad - 121002, NCR, Haryana, India

DECLARATION
I, Tanya Bansal hereby declare that this summer training report is the record of
authentic work carried out by me during the period from 15 th July 2016 to
12th November 2016 and has not been submitted to any other University or
Institute for the award of any degree / diploma etc.

(Signature)
Tanya Bansal
Date:

BONAFIDE CERTIFICATE
This is to certify that Tanya Bansal of Satyug Darshan Institute of
Engineering and Technology has successfully completed the project work
titled SERVICE AUALITY OF HDFC BANK in partial fulfillment of
requirement for the completion of Bachelor in Business Administration (BBA
IIFSB) course as prescribed by the Maharshi Dayanand University, Rohtak,
(HARYANA).

This project report is the record of authentic work carried out by him/her during
the period from 15th July 2016 to 12th November 2016. She has worked under
my guidance.

(Signature)
Mr. Paramjeet Singh Ahuja
Assistant Professor, BBA Department
Project Guide (Internal)
Date:

Counter signed by

(Signature)
Mr. Ravi Bakshi
Department Coordinator (BBA Department)
Date:
3

TABLE CONTENT

S.No.

PARTICULAR

1.

Introduction to the Study

2.

Company Profile
Research Methodology
Objective of the Study
Scope of the Study

3.

Research Design
Method of Data Collection
Limitation of the Study

4.

Data Processing & Analysis

5.

Findings, Conclusion and Suggestions

6.

Bibliography

7.

Annexure

Chapter - 1
Introduction to the Study

INTRODUCTION OF BANKING
Todays banking customers will settle for nothing less. The customer has come to realize
somewhat belatedly that he is the king. The customers choice of one entity over another as
his principal bank is determined by considerations of service quality rather than any other
factor. He wants competitive loan rates but at the same time also wants his loan or credit card
application processed in double quick time. He insists that he be promptly informed of
changes in deposit rates and service charges and he bristles with customary rage if his bank
is slow to redress any grievance he may have. He cherishes the convenience of impersonal
net banking but during his occasional visits to the branch he also wants the comfort of
personalized human interactions and facilities that make his banking experience pleasurable.
In short he wants financial house that will more than just clear his cheque and updates his
passbook: he wants a bank that cares and provides great services.
So does HDFC bank meet these heightened expectations? What are the customers
perceptions of service quality of the banks? Which dimension of service quality of HDFC
bank is performing well? To find out answers to these questions I undertook a survey of 2
branches of HDFC bank.
A lot of surveys have been done in the past to understand the aspect of customer satisfaction
and to find out the customer friendly banks. My research is conducted to find out SERVICE
QUALITY OF HDFC BANK.

Chapter - 2
COMPANY PROFILE

COMPANY PROFILE
7

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to
receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the
private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. The
bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its
registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled
Commercial Bank in January 1995.
HDFC Bank comprises of a dynamic and enthusiastic team determined to accomplish the
vision of becoming a World-class Indian bank. HDFC banks business philosophy is based on
our four core values - Customer Focus, Operational Excellence, Product Leadership and
People. They believe that the ultimate identity and success of their bank will reside in the
exceptional quality of people and their extraordinary efforts. They are committed to hiring,
developing, motivating and retaining the best people in the industry.
BUSINESS FOCUS
HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound
customer franchises across distinct businesses so as to be the preferred provider of banking
services for target retail and wholesale customer segments, and to achieve healthy growth in
profitability, consistent with the bank's risk appetite. The bank is committed to maintain the
highest level of ethical standards, professional integrity, corporate governance and regulatory
compliance. HDFC Bank's business philosophy is based on four core values - Operational
Excellence, Customer Focus, Product Leadership and People.
MISSION STATEMENT OF HDFC BANK
* World Class Indian Bank.
* Benchmarking against international standards.
* To build sound customer franchises across distinct businesses
* Best practices in terms of product offerings, technology, service levels, risk management
and audit & compliance
VISION STATEMENT OF HDFC BANK
8

The HDFC Bank is committed to maintain the highest level of ethical standards, professional
integrity and regulatory compliance. HDFC Banks 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.

BUSINESS STRATEGY
*

Increasing market share in Indias expanding banking

Delivering high quality customer service

Maintaining current high standards for asset quality through

Disciplined credit risk management

Develop innovative products and services that attract targeted

Customers and address inefficiencies in the Indian financial
Sector.

DISTRIBUTON NETWORK
9

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of
over 1229 branches spread over 444 cities across India. All branches are linked on an online
real-time basis. Customers in over 120 locations are also serviced through Telephone
Banking. The Bank's expansion plans take into account the need to have a presence in all
major industrial and commercial centers where its corporate customers are located as well as
the need to build a strong retail customer base for both deposits and loan products. Being a
clearing/settlement bank to various leading stock exchanges, the Bank has branches in the
centers where the NSE/BSE has a strong and active member base.
The Bank also has a network of about over 2526 networked ATMs across these cities.
Moreover, HDFC Bank's ATM network can be accessed by all domestic and international
Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge
cardholders.
PROMOTER
HDFC is India's premier housing finance company and enjoys an impeccable track record in
India as well as in international markets. Since its inception in 1977, the Corporation has
maintained a consistent and healthy growth in its operations to remain a 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.
MANAGEMENT
Mr. C.M. Vasudev has been appointed as the Chairman of the Bank with effect from 6th July
2010 subject to the approval of the Reserve Bank of India and the shareholders. Mr. Vasudev
has been a Director of the Bank since October 2006. A retired IAS officer, Mr. Vasudev has
had an illustrious career in the civil services and has held several key positions in India and
overseas, including Finance Secretary, Government of India, Executive Director, World Bank
and Government nominee on the Boards of many companies in the financial sector.

10

The Managing Director, Mr. Aditya Puri, has been a professional banker for over 25 years,
and before joining HDFC Bank in 1994 was heading Citibank's operations in Malaysia.
The Bank's Board of Directors is composed of eminent individuals with a wealth of
experience in public policy, administration, industry and commercial banking. Senior
executives representing HDFC are also on the Board.
Senior banking professionals with substantial experience in India and abroad head various
businesses and functions and report to the Managing Director. Given the professional
expertise of the management team and the overall focus on recruiting and retaining the best
talent in the industry, the bank believes that its people are a significant competitive strength.
TECHNOLOGY
HDFC Bank operates in a highly automated environment in terms of information technology
and communication systems. All the bank's branches have online connectivity, which enables
the bank to offer speedy funds transfer facilities to its customers. Multi-branch access is also
provided to retail customers through the branch network and Automated Teller(ATMs).
The Bank has made substantial efforts and investments in acquiring the best technology
available internationally, to build the infrastructure for a world class bank. The Bank's
business is supported by scalable and robust systems which ensure that our clients always get
the finest services we offer.
The Bank has prioritised its engagement in technology and the internet as one of its key goals
and has already made significant progress in web-enabling its core businesses. In each of its
businesses, the Bank has succeeded in leveraging its market position, expertise and
technology to create a competitive advantage and build market share.
BUSINESS
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 corporates and agribased 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
11

superior supply chain management for its corporate customers. Based on its superior product
delivery / service levels and strong customer orientation, the Bank has made significant
inroads into the banking consortia of a number of leading Indian corporates including
multinationals, companies from the domestic business houses and prime public sector
companies. It is recognised 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 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 Mastercard Maestro debit card as well. The Bank launched its
credit card business in late 2001. By March 2010, the bank had a total card base (debit and
credit cards) of over 14 million. The Bank is also one of the leading players in the merchant
acquiring business with over 90,000 Point-of-sale (POS) terminals for debit / credit cards
acceptance at merchant establishments. The Bank is well positioned as a leader in various net
based B2C opportunities including a wide range of internet banking services for Fixed
Deposits, Loans, Bill Payments, etc.
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
liberalisation of the financial markets in India, corporates need more sophisticated risk
management information, advice and product structures. These and fine pricing on various
12

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.
QUALITY POLICY
SECURITY: The bank provides long term financial security to

their policy. The bank does

this by offering life insurance and pension products.

TRUST: The bank appreciates the trust placed by their policy holders in the bank. Hence, it
will aim to manage their investments very carefully and live up to this trust.

INNOVATION: Recognizing the different needs of our customers, the bank offers a range of
innovative products to meet these needs.

13

Chapter - 3
RESEARCH OBJECTIVE AND
RESEARCH METHODOLOGY

14

RESEARCH OBJECTIVE
The objective of the study is as follows:

To examine the essential dimensions of service quality i.e. RATER- Reliability,

assurance, tangibles, empathy and responsiveness of HDFC bank and its effect on
customers satisfaction.

To find out the level of perception of the customers from the service quality offered
by the banks.

To know which service quality dimension of the bank is performing well.

To identify which dimension of service quality needs improvement so that the quality
of service of HDFC banks is enhanced.

IMPORTANCE AND SCOPE OF THE STUDY

The study would try to throw some insights into the existing services provided by the banks,
perceptions and the actual service quality of the bank. The results of the study would be able
to recognize the lacunae in the system and thus provide key areas where improvement is
required for better performance and success ratio. In the days of intense competition, superior
service is the only differentiator left before the banks to attract, retain and partner with the
customers. Superior service quality enables a firm to differentiate itself from its competition,
gain a sustainable competitive advantage, and enhance efficiency
SCOPE OF STUDY
The scope of this research is to identify the service quality of HDFC bank. This research is
based on primary data and secondary data. This study only focuses on the dimensions of
service quality i.e. RATER. It aims to understand the skill of the company in the area of
service quality that are performing well and shows those areas which require improvement.
The study was done taking two branches of HDFC bank into consideration. The survey was
restricted to the bank customers in Delhi only.

15

RESEARCH METHODOLOGY
DATA SOURCE
Primary Data
The primary data was collected by means of a survey. Questionnaires were prepared and
customers of the banks at two branches were approached to fill up the questionnaires. The
questionnaire contains 20 questions which reflect on the type and quality of services provided
by the banks to the customers. The response of the customer and the is recorded on a grade
scale of strongly disagree, disagree, uncertain, agree and strongly agree for each question.
The filled up information was later analyzed to obtain the required interpretation and the
findings.
Secondary Data
In order to have a proper understanding of the service quality of bank a depth study was done
from the various sources such as books, a lot of data is also collected from the official
websites of the banks and the articles from various search engines like Google, yahoo search
and answers.com.
RESEARCH DESIGN
The research design is exploratory till identification of service quality parameters. Later it
becomes descriptive when it comes to evaluating customer perception of service quality of
the banks.
Descriptive research, also known as statistical research, describes data and characteristics
about the population or phenomenon being studied. Descriptive research answers the
questions who, what, where, when and how.
Although the data description is factual, accurate and systematic, the research cannot describe
what caused a situation. Thus, descriptive research cannot be used to create a causal
relationship, where one variable affects another. In other words, descriptive research can be
said to have a low requirement for internal validity.
16

The description is used for frequencies, averages and other statistical calculations. Often the
best approach, prior to writing descriptive research, is to conduct a survey investigation.
Qualitative research often has the aim of description and researchers may follow-up with
examinations of why the observations exist and what the implications of the findings are
RESEARCH SAMPLE
SAMPLING PLAN
Since it is not possible to study whole universe, it becomes necessary to take sample from the
universe to know about its characteristics.

Sampling Units: Customers of HDFC bank

Sample Technique: Random Sampling.
Research Instrument: Structured Questionnaire.
Contact Method: Personal Interview.

SAMPLE SIZE
The work is a case of HDFC Bank, one of the largest bank of Indian banking industry
together representing over 25 per cent of the market share of Indian banking space. The
survey was conducted in the city of Delhi with two branches of HDFC Bank, with 50
customers as respondent.
DATA COLLECTION TOOL
1.

Strongly disagree

2.

Disagree

3.

Neither agree nor disagree

4.

Agree

5.

Strongly agree
17

Likert scaling is a bipolar scaling method, measuring either positive or negative response to a
statement. The questionnaire consists of two parts. The first part consists of three questions
concerning the demographic information of the respondent such as the name, age, educational
qualifications and income. The second part consisting of 18 questions exploring the
respondents perception about the service quality of HDFC. For evaluation of service quality
of HDFC bank service quality dimension of reliability, assurance, tangibility, empathy and
responsiveness is used in order to evaluate the actual service quality of HDFC bank.
LIMITATIONS OF THE STRATEGY

The study is only for the HDFC Bank confined to a particular location and a very
small sample of respondents. Hence the findings cannot be treated as representative of
the entire banking industry.

The study can also not be generalized for public and private sector banks of the
country.

Respondents may give biased answers for the required data. Some of the respondents
did not like to respond.

Respondents tried to escape some statements by simply answering neither agree nor
disagree to most of the statements. This was one of the most important limitation
faced, as it was difficult to analyse and come at a right conclusion.

In our study we have included 50 customers of bank because of time limit.

18

Chapter - 4
Data Processing & Analysis

Ques. Age
19

AGE CATEGORY

FREQUENC

PERCENTAGE

CUMULATIVE
PERCENTAGE

18-23 Years

10

20

20

24-29 Years

17

34

54

30-35 Years

15

30

84

35 Years and above

16

100

TOTAL

50

100

Sales

18-23 Year

24-29 Year

30-35 Year

INTERPRETATION
From the table and graph above it can be seen that

20% respondents age are 18 to 23 years.

34% respondents age are 24 to 29 years.

30% respondents age are 30 to 35 years..

16% respondents age are 35 to above years.

Ques. Educational qualifications

20

35 and above

CATEGORY

FREQUENCY

PERCENTAGE

CUMULATIVE
ERCENTAGE

13

26

26

20

40

66

17

34

100

50

100

UNDER GRADUATE
GRADUATE
POST GRADUATE

TOTAL

Sales

UNDERGARDUATE

GRADUATE

POST GRADUATE

INTERPRETATION
From the table above it can be seen that

26% respondents are under graduate.

40% respondents are Graduate.

34% respondents are Post graduate.

TANGIBILITY DIMENSION OF SERVICE QUALITY (Questions1 to 4):

21

Physical facilities, equipments and appearance of personnel

Ques.1 HDFC bank has modern looking equipment.

SCALE
FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

10

10

25

50

60

16

32

92

100

50

100

STRONGLY
DISAGREE
DISAGREE
UNCERTAIN
AGREE
TOTAL

Sales

STRONGLY DISAGREE

DISAGREE

UNCERTAIN

AGREE

INTERPRETATION
HDFC bank has modern-looking and hi-tech equipments. Here analysis show that most of the
respondents disagreed with this statement. Among the total respondents 50% disagreed, 32%
were neutral and 8% agreed. After analysis I found that majority of the respondents think that
HDFC Bank do not have modern looking equipments or no hi-tech equipments.

Ques.2 The bank's physical features are visually appealing.

22

SCALE

FREQUENCY

PERCENTAGE

CUMULATIVE
ERCENTAGE

29

58

66

17

34

100

50

100

DISAGREE
UNCERTAIN
AGREE
TOTAL

Sales

DISAGREE
UNCERTAIN
AGREE

INTERPRETATION
HDFC banks physical facilities are visually appealing. From this statement I found that 17
persons agreed. 29 persons were uncertain and 4 persons disagreed. This means 58% people
were uncertain about this statement. Out of the total respondents only 4% disagreed and no
one strongly agreed or disagreed with the statement. 17% people agreed that HDFC banks
physical facilities are visually appealing.

Ques.3 The bank's reception desk employees are neat appearing.

23

SCALE

FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

10

10

21

42

52

18

36

88

12

100

50

100

DISAGREE
UNCERTAIN
AGREE
STRONGLY
AGREE
TOTAL

Sales

DISAGREE

UNCERTAIN

AGREE

STRONGY AGREE

INTERPRETATION
HDFC banks employees appear neat. Here analysis shows that majority were neutral. Among
the total respondent 21 respondents were neutral, 18 people agreed and 6 respondents
strongly agreed. The rest disagreed. From analysis I found that some respondents agreed with
this statement but most of the respondents think the employees of the HDFC bank appear
neat.

Ques.4 Materials associated with the service (such as pamphlets or

statements) are visually appealing at the bank.
24

SCALE

FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

DISAGREE

14

14

UNCERTAIN

22

44

58

18

36

94

100

50

100

AGREE
STRONGLY
AGREE
TOTAL

Sales

DISAGREE

UNCERTAIN

AGREE

STRONGLY

AGREE

INTERPRETATION
Materials associated with the service are visually appealing at HDFC bank. Here 36%
respondents agreed with this statement and 6% strongly agreed with this statement. 44% were
neutral that is most and 14% disagreed. There was no respondent who strongly disagreed.
Hence, in general it can be concluded that materials associated with the services such as
pamphlets or statements are visually appealing.

RELIABILITY DIMENSION OF SERVICE QUALITY (Questions 5 to 8):

25

Ability to perform the promised service dependably and accurately

Ques.5 when the bank promises to do something by a certain time, it does
so.
SCALE

FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

STRONGLY
DISAGREE

26

52

56

10

66

14

28

94

100

50

100

DISAGREE
UNCERTAIN
AGREE
STRONGLY
AGREE
TOTAL

Sales
4

STRONGLY DISAGREE

28
DISAGREE

UNCERTAIN

AGREE
52

STRONGLY AGREE

10

INTERPRETATION
My sample size was 50. Here analysis shows that among the total respondents 26 respondents
disagreed and 14 respondents agreed with this question. Also I found that 5 people were
neutral and 2 people strongly disagreed. Hence I concluded that majority of them disagreed
that the bank when promises to do something by certain time, it does so.

26

Ques. 6 When you have a problem, the bank shows a sincere interest in
solving it.
SCALE

FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

14

28

34

26

52

86

14

100

50

100

DISAGREE
UNCERTAIN
AGREE
STRONGLY
AGREE
TOTAL

Sales

DISAGREE
UNCERTAIN
AGREE
STRONGLY AGREE

INTERPRETATION
When you have a problem, HDFC bank shows sincere interest in solving it. After analyzing
this statement I found that most of the respondents agreed i.e. 52% respondents agreed. Also I
found that 28% were neutral with this statement and 6% were committed with disagree. There
was no one who strongly disagreed. Hence HDFC bank can be said to be reliable.

27

Ques.7 The bank performs the service right the first time.
SCALE

FREQUENCY

STRONGLY
DISAGREE

PERCENTAGE

CUMULATIVE
PERCENTAGE

16

20

17

34

54

17

34

88

12

100

50

100

DISAGREE
UNCERTAIN
AGREE
STRONGLY
AGREE
TOTAL

Sales

STRONGLY DISAGREE

DISAGREE

AGREE

STRONGLY AGREE

UNCERTAIN

INTERPRETATION
Total sample size was 50. Here analysis shows that among the total respondents 17 people
agreed with this statement. They think that HDFC bank performs the services right the first
time. 6 people strongly agreed with this statement. Also 17 people were neutral and the rest of
the respondents disagreed and strongly disagreed.

28

Ques.8 The bank insists on error free records.

SCALE

FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

DISAGREE
5

10

10

10

20

30

23

46

76

STRONGLY
AGREE

12

24

100

TOTAL

50

100

UNCERTAIN
AGREE

Sales

DISAGREE

UNCERTAIN

AGREE

STRONGLY AGREE

INTERPRETATION
Bank insists on error free records. HDFC bank has proved from my analysis that it surely
insist on error free records as 46% respondents agreed with this statement and 24% strongly
agreed. Only 10% respondents disagreed and no one strongly disagreed.

29

RESPONSIVENESS DIMENSION OF SERVICE QUALITY (Question 9 to 12

Willingness to help customers and provide prompt services

Ques. 9 Employees in the bank tell you exactly when the services will be
performed.

SCALE
STRONGLY
DISAGREE

FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

12

12

16

28

13

26

54

18

36

90

10

100

50

100

DISAGREE
UNCERTAIN
AGREE
STRONGLY
AGREE
TOTAL

Sales

STRONGLY DISAGREE

DISAGREE

UNCERTAIN

STRONGLY AGREE

AGREE

INTERPRETATION
Employees in the bank tell you exactly when the services will be performed. Majority of the
respondents agreed with this statement. 26% respondents were uncertain. At the same time
16% disagreed and 12% Strongly disagreed with this statement.
30

Ques. 10 Employees in the bank give you prompt service.

SCALE

FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

10

10

16

32

42

27

54

96

100

50

100

DISAGREE
UNCERTAIN
AGREE
STRONGLY
AGREE
TOTAL

Sales

DISAGREE

UNCERTAIN

AGREE

STRONGLY AGREE

INTERPRETATION
Most of the respondents agreed with this statement. According to my analysis, employees in
HDFC Bank give prompt service. Among the total respondents agreed respondents were 27
and strongly agreed were 2. 16 people were neutral and 5 disagreed. There was no respondent
who strongly disagreed with this statement.

31

Ques.11 Employees in the bank are always willing to help you

SCALE

FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

12

24

24

29

58

82

18

100

50

100

UNCERTAIN
AGREE
STRONGLY
AGREE
TOTAL
.

Sales

UNCERTAIN
AGREE
STRONGLY AGREE

INTERPRETATION
Employees in HDFC bank are willing to help you. With this statement no one disagreed or
strongly disagreed. Strongly agreed were 9 people i.e. 18% respondents strongly agreed, 29
people agreed i.e. 58% respondents agreed and 24% respondents were neutral.

32

Ques.12 Employees in the bank are never too busy to respond to your
request.
SCALE

FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

11

22

24

27

54

78

11

22

100

50

100

DISAGREE
UNCERTAIN
AGREE
STRONGLY
AGREE
TOTAL

Sales

DISAGREE

UNCERTAIN

AGREE

STRONGLY AGREE

INTERPRETATION
Employees in HDFC Bank ltd are never too busy to respond to your request. After analyzing
this statement I found that most of the respondents agreed with this statement. Among the
total respondents 22% strongly agreed and 54% agreed. 11 respondents were neutral and 1
respondent disagreed. No one strongly disagreed.

33

ASSURANCE DIMENSION OF SERVICE QUALITY (Question13 to 16)

Knowledge and courtesy of employees and their ability to inspire trust and
confidence
Ques.13 the employees of the bank are trustworthy.
SCALE

FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

DISAGREE
4

13

26

34

28

56

90

10

100

50

100

UNCERTAIN
AGREE
STRONGLY
AGREE
TOTAL

Sales

DISAGREE
UNCERTAIN
AGREE
STRONGLY AGREE

INTERPRETATION
The employees of the bank are trustworthy. According to my findings, 54% respondents
agreed that employees at HDFC bank are trustworthy. 13% respondents were neutral and 4%
respondents disagreed with this statement.
34

Ques.14 The behavior of employees in the bank instills confidence in you.

SCALE

FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

28

56

56

4
1
3

64

26

90

10

100

50

100

DISAGREE
UNCERTAIN
AGREE
STRONGLY
AGREE
TOTAL

Sales

DISAGREE
UNCERTAIN
AGREE
STRONGLY AGREE

INTERPRETATION
The behavior of employees in HDFC bank instills confidence in you. Here analysis shows
that most of the people disagreed. Among the total respondents 28 respondents disagreed, 13
agreed and 5 strongly agreed. There was no respondent who strongly disagreed. This means
56% respondent disagreed with this statement.

35

Ques.15 You feel safe in your transactions with the bank.

SCALE

FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

10

10

16

32

42

23

46

88

12

100

50

100

DISAGREE
UNCERTAIN
AGREE
STRONGLY
AGREE
TOTAL

Sales

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

INTERPRETATION
With this statement most of the respondents agreed. Among the total respondents 23 agreed
with this statement and 6 strongly agreed. 32% respondents were neutral and 10%
respondents disagreed. But there no one who strongly disagreed.

36

Ques.16 Employees in the bank have the knowledge to answer your

questions.
SCALE

FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

18

22

26

52

74

13

26

100

50

100

DISAGREE
UNCERTAIN
AGREE
STRONGLY
AGREE
TOTAL

Sales

DISAGREE

UNCERTAIN

AGREE

STRONGLY AGREE

INTERPRETATION
From my analysis I found that 54% respondents agreed that employees of HDFC bank have
complete knowledge to answer their questions. 26% respondents strongly agreed to this
statement and only 4% disagreed. 18% neither agreed nor disagreed.

37

EMPATHY DIMENSION OF SERVICE QUALITY (Question17 to 20)

Caring and individualized attention that firm provides to its customers.
Ques.17 The bank gives you individual attention.
SCALE

FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

26

52

52

12

24

76

10

20

96

100

50

100

DISAGREE
UNCERTAIN
AGREE
STRONGLY
AGREE
TOTAL

Sales

DISAGREE

UNCERTAIN

AGREE

STRONGLY AGREE

INTERPRETATION
HDFC bank is not able to give individual attention to its customers as out of the total
respondents 54% disagreed with this statement. 12% of the respondents were neutral and only
12% agreed and 2% strongly agreed. From this finding it can be concluded that it is unable to
give individual attention to its customers.

38

Ques.18 The bank has operating hours convenient to all its customers.
SCALE

FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

DISAGREE

UNCERTAIN

14

28

32

AGREE

27

54

86

STRONGLY
AGREE

14

100

TOTAL

50

100

Sales
DISAGREE
UNCERTAIN
AGREE
STRONGLY AGREE

INTERPRETATION
HDFC bank has operating hours convenient to all its customers. Out of 50 respondents, 27
respondents agreed with this statement and only 2 respondents disagreed. Also 7 respondents
strongly agreed that the bank has operating hours convenient to its customers.

39

Ques.19 The bank has your interests best at heart.

SCALE

FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

STRONGLY
DISAGREE

10

16

10

20

36

25

50

86

14

100

50

100

DISAGREE
UNCERTAIN
AGREE
STRONGLY
AGREE
TOTAL

180
160
140
120

86

100
80

CUMULATIVE PERCENTAGE

PERCENTAGE

FREQUENCY
100

SCALE

60
36

40
20

16
6

0
1

INTERPRETATION
HDFC bank has your best interests at heart. Here analysis shows that 25 respondents agreed
and 7 respondents strongly agreed with this statement. 20% were neutral and the rest
disagreed and strongly disagreed.

40

Ques.20 The employees of the bank understand your specific needs.

SCALE

FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

10

10

21

42

52

20

40

92

100

50

100

DISAGREE
UNCERTAIN
AGREE
STRONGLY
AGREE
TOTAL

Sales

DISAGREE

UNCERTAIN

AGREE

STRONGLY AGREE

INTERPREATION
Employees of HDFC bank understand specific needs. With this statement most of the
respondents were neutral. Among the total respondents 20 respondents agreed and 4
respondents strongly agreed. 5 respondents disagreed with this statement.

41

MEASURING SERVICE QUALITY DIMENSIONS

Measuring the quality of a service can be a very difficult exercise. Unlike product where
there are specific specifications such as length, depth, width, weight, colour etc. a service can
have

numerous

intangible

or

qualitative

specifications.

Parasuraman, Zenithal, and Berry (1985) provide a list of determinants of service quality:
access, communication, competence, courtesy, credibility, reliability, responsiveness, security,
understanding, and tangibles. A total of five consolidated dimensions of service quality are:

Tangibles (ques.1 to 4) - Physical facilities, equipments and appearance of personnel

Reliability (ques.5 to 8) - Ability to perform the promised service dependably and

accurately

Responsiveness (ques.9 to 12) Willingness to help customers and provide prompt

services

Assurance (ques.13 to 16) (including competence, courtesy, credibility and security)

Knowledge and courtesy of employees and their ability to inspire trust and confidence

Empathy (ques.17 to 20) (including access, communication and understanding the

customer) Caring and individualized attention that firm provides to its customer.

In order to calculate which dimension of service quality is performing well, a sample of the
questions are used in the questionnaire. Using the questionnaire, obtain the score for each of
the 20 statements. After analysis of the data, Overall score to each statement is given on a
scale of 1 to 5 i.e. 1 is given to strongly disagreed i.e. the lowest score, then 2= disagreed, 3=
uncertain, 4= agreed and 5= strongly agreed.

42

Sum the score for each dimension of service quality to obtain a final score which tells which
Dimension is performing well and which dimension needs improvement.

The scores for each dimension are summed up and a final score is obtained

SERVICE QUALITY DIMENSION

Points

1. TANGIBILITY (1 TO 4)

11

2. RELIABILITY (5 TO 8)

13.5

3. RESPONSIVENESS (9 TO 12)

16

4. ASSURANCE (13 TO 16)

14

5. EMPATHY (17 TO 20)

13

43

Chapter - 5
Findings, Conclusion and
Suggestions

44

FINDINGS OF THE REPORT

The Reliability dimension of service quality is better as compared to empathy and
tangibility. Still the score is low. For most services, customers perceptions of whether
the service has been performed correctly, and not provider-established criteria, are the
major determinants of reliability. Customers of the bank hesitate to rely on the bank.
Whenever they have a problem, the bank shows sincere interest in solving it but the
services are not performed by a certain time as promised. The employees should take
this

problem

seriously

and

take

steps

to

remove

this.

As score for Assurance is at second place after responsiveness, so the customers of

HDFC bank are very confident and feel safe while transacting with the bank.
Moreover the employees of the bank have proved to be trustworthy. Employees are
also

educated

enough

to

answer

all

the

questions.

The score of Tangibility dimension of service quality of HDFC bank is the lowest.
The service quality factor tangible is defined by whether the physical facilities and
materials associated with the service are visually appealing at the bank. These are all
factors that customers notice before or upon entering the bank. Customer expectations
regarding visual appealing of HDFC is very high. From my study I found that
Physical facilities and modern looking equipment are not sufficient in HDFC bank.
Respondents were uncertain about the neat appearance of the reception desk
employees. So they should work on that and try to fulfill the gap.
According to my findings, the score of Empathy is not satisfactory but not
unsatisfactory also. HDFC bank is unable to give individual attention to its customers
and is unable to understand specific needs of its customers. But still bank has taken
steps to satisfy its customers by keeping operating hours convenient to its customers
and

keeping

their

interest

best

at

heart.

In HDFC bank, the score of Responsiveness is highest so they are focusing on

prompt service, employees are willing to help the customers and say the exact time
45

when the services will be performed. Employees at bank give their customers first
preference and are always ready to help them. Overall HDFC banks responsiveness
dimension

of

service

quality

is

the

highest.

CONCLUSION
Based on the study conducted it can be concluded that responsiveness, assurance and
reliability are the critical dimensions of service quality of HDFC bank and they are directly
related to overall service quality. The factors that may delight customers tend to be concerned
more with the intangible nature of the service, commitment, attentiveness, friendliness, care,
and courtesy.
The employees give prompt services, always are ready to answer the questions and are
trustworthy. The main sources of dissatisfaction appear to be cleanliness, up to date
technology modern equipments, and neatly dressed up employees. The Tangibility dimension
of service quality of HDFC bank is highly disappointing and serious steps are needed to be
taken to enhance this dimension. Customers of the bank are dissatisfied with the empathy
dimension. To satisfy these customers, the management can take some attempts, noted earlier
as recommendations.
The study brings about the areas which require urgent attention of the employees, the
management, and the policy makers of the industry. These are areas in which customers are
hugely dissatisfied with the services of the banks against their expectation. This high degree
of dissatisfaction resulting from the services received clearly questions the design of services
or subsequent response of the bank employees. These limitations are too serious to be
avoided as these question the front-line people dealing with the customers and the approach
of the management in taking customers seriously.
The management should understand the benefits of service quality. It include increased
customer satisfaction, improved customer retention, positive word of mouth, reduced staff
turnover, decreased operating costs, enlarged market share, increased profitability, and
improved financial performance. In the days of intense competition, superior service is the
only differentiator left before the banks to attract, retain and partner with the customers.
Superior service quality enables a firm to differentiate itself from its competition, gain a

46

sustainable competitive advantage, and enhance efficiency. Thus, improving service quality
leads to the customer satisfaction and, ultimately, to customer loyalty.

SUGGESTIONS
Reliability is an obvious place to start. Customers of the bank want to know their
resources are safe and within trustworthy institutions. A way to ensure this peace of
mind would be to take steps to ensure bank employees are well trained, so each bank
associate is able to offer complete and comprehensive information at all times.
Consistent policies combined with a knowledgeable staff will foster a high degree of
institutional cohesion and reliability.
Responsiveness, again when associated with a well-trained staff and timely answers to
service-related questions, would make significant inroads into causing HDFC bank be
regarded as responsive. Staff should be encouraged to present relevant options to
banking customers in a manner that does not resemble salesmanship so much as a
desire to serve.
Intangibles please customers just as much as tangibles in the banking industry. People
tend to visit the same branch of a bank over and over again. Usually, this is a location
close to their home or their workplace. It is natural that customers become
comfortable and habituated to these branch banks, for the same reason they develop
familiarity with a neighborhood supermarket or convenience store. It makes sense that
bank employees would be encouraged to learn to recognize these regular customers,
learn their names, and begin to identify their basic service requirements.
Learning to understand customers needs will allow bank associates to offer enhanced
services, perhaps lowering customers banking costs and increasing their investment
potential. This could also open up the possibility of increased profits for banks, for
when perceived as more service and customer oriented, they will, in effect, become a
useful and pleasant way to shop.
Keeping the bank with up-to-date technologically are important factors. Modern
equipments, new improved technology should be replaced with the old ones. If the
47

staff inside is pleasant and well-informed, in an aesthetically pleasing environment,

then customer satisfaction will be high.

BIBLIOGRAPHY
References
Kotler Philip, marketing management, (Pearson education, 12th edition)
Malhotra K. Naresh, marketing research (An applied orientation), Research design,
(Prentice hall of India pvt. 5th edition)
Zeithmal V. A., Grembler D.D., Bitner M.j., and Pandit A.: Service Marketing Integrated
customer Focus across the Firm (4th Edition)
M.K. Rampal : Service Marketing

Websites
www.hdfcbank.com
www.hdfcindia.com
www.wikipedia.org
www.marketresearch.com

48

ANNEXURE
QUESTIONNAIRE
Respected Sir/Madam
I am student of Satyug Darshan Institute of Engineering & Technology, conducting a survey
on SERVICE QUALITY OF HDFC BANK. The following statements relate to your
feelings about the HDFC bank. Please show the extent to which you believe HDFC bank has
the feature described in the statement. I request you to check the option which in your
opinion are believed to be true.

Name:
Age:
Educational Qualifications

QUESTIONS

Strongly
Disagree

Disagree

Neither
agree Nor
disagree

1.HDFC bank has modern looking

Equipment.
2. The bank's physical features are
visually
49

Agree

Strongly
Agree

appealing
3. The bank's reception desk
employees are neat appearing.
4. Materials associated with the
service (such as pamphlets or
statements) are visually Appealing
at the bank.
5. When the bank promises to do
something By a certain time, it
does so.
6. When you have a problem, the
bank Shows a sincere interest in
solving it.
7. The bank performs the service
right the First time.
8. The bank insists on error free
records.
9. Employees in the bank tell you
exactly When the services will be
performed.
10. Employees in the bank give
you prompt Service.
11. Employees in the bank are
always Willing to help you.
12. Employees in the bank are
never too busy to respond to your
13. The employees of the bank are
Trustworthy.
50

14. The behavior of employees in

the bank Instills confidence in
you.
15. You feel safe in your
transactions with The bank.
16. Employees in the bank have
the
Knowledge to answer your
questions.
17. The bank gives you individual
attention.
18. The bank has operating hours
convenient to all its customers
19. The bank has your best
interests at heart.
20. The employees of the bank
understand Your specific needs.

51

THANK YOU

52