A Summer Internship Project Report on

“To Find Out The Satisfaction Level Of Hdfc Bank

Customer’s In Butibori Area”
submitted in partial fulfillment of the requirements for the degree of

Post Graduate Diploma in Management (Marketing)

by

ABDUL RAZAK SHEIKH

(Roll No.C-53)

Under the guidance of

Kumendra Raheja

A Study Conducted for

HDFC Bank Ltd.
Trimurti Tower, Opposite 5 star MIDC
Gate,Butibori Square
Butibori-441108

at
Indira School of Business Studies,
Tathawade, Pune 411033

(2009-11)
 ACKNOWLEDGEMENTS

The satisfaction and excitement that go together with the successful

completion of any work be incomplete without mentioning of the people, whose competent
guidance and encouragement serve as inspirational light to help along the path of success

Firstly, I express my gratitude to Dr. Renu Bhargava, Director, Indira School of

Business Studies, Pune for giving me the valid opportunity to undertake this project. I also thank
Mr. Kumendra Raheja for continuous guidance & support.

I would like to express my heartfelt gratitude to Mr. Pankaj khamankar (B.M

HDFC Bank Ltd). I am extremely thankful to all time supportive Mr. Tushar Takale (PBA
Manager) for his inspiring guidance and scholarly supervision. My special appreciation goes to
Mr. Ramukumar Choubey (Asst Manager) for guidance and support throughout the project.

I take this opp

Associates (CSA) for providing me required information, and time which made me accomplish
my project successfully.
Abdul .R. Sheikh

Date:-
Indira School of Business Studies,
Pune.

FORMAT OF CERTIFICATE FROM THE COLLEGE

This is to certify that Mr. Abdul .R. Sheikh is a bonafide student of this institute and has
successfully completed his project entitled “Customer’s Perception Towards the Product and
Service Offered by HCDF Bank in Rural Areas And Comparative Analysis” at HDFC Bank
Ltd. , Butibori for partial fulfillment of course Post Graduate Diploma in Management
(Marketing) from Indira School of Business Studies.
Dr. Renu Bhargava

Prof. _______
Director, ISBS

Internal Guid

FORMAT OF COMPLETEION CERTIFICATE FROM

THE COMPANY (Company’s Letterhead)

This is to certify that Mr./Ms. __________________________student of Post Graduate Diploma

in Management from Indira School of Business Studies has satisfactorily completed his/her
project work entitled
______________________________________________________________________________
__________________________________________ in ___________________Department of
_____________________ from _____to_______.

Authorized Signature

**********************

EXECUTIVE SUMMARY

The bases of the project were to understand customer perception about the various
schemes like Current account and Salary account under liability products for retail banking.

The project also encompasses, identify and parameter, a customer would look into while
transacting with bank for certain scheme.
Overall analysis has been done, keeping in mind the various customer segments like businessmen,
salaried people, students and others, consideration while opting for any deposits or borrowings.

The analysis shows the pitfalls and identifies the opportunities available for HDFC Bank and
competitor analysis has been done by considering four other close competing commercial banks
like ICICI, SBI, UTI, IDBI banks at Nagpur , analysis has been done by taking the profitability
and performance indicator, it says there are several potentials available for HDFC bank to be the
market favorite. After the analysis it is found that the major part of the deposits from HDFC Bank
, Nagpur is formed by businessmen followed by salaried people and professionals and its nearest
competitors are ICICI Bank & SBI.

Table of Contents
SN Contents Pg No

1 Introduction

2 Industry / Company overview

 Industry overview

Company profile

3 Review of Literature/ Theoretical Background

4 Objectives

5 Research Methodology

6 Data Analysis , Results and Interpretation

7 Findings

8 Conclusion

9 Limitations of the project

10 Recommendations

11 Appendix

12 Bibliography

Introduction

The project is on to find out the satisfaction level of Hdfc bank customer’s in
butibori area. The purpose of the project was to increase footfalls, find out flaws within the
system and suggest corrective measures to increase footfalls.
 The project aims at finding out Customer wives between Current Service standards
at HDFC Bank Ltd and Customers expectations. Current service standards were clear by
personally visiting HDFC Bank and observing the behavior of customers, the services offered to
customers and thereby understanding the shortcomings of the Bank.

The next phase was Customers Expectations Survey. Customers Expectation

survey was basically carried out with the aim of finding out customers’ satisfaction level with
respect to services provided and category of products offered. The secondary purpose was to find
out the effect of promotion by HDFC Bank. To get a deeper understanding of the expectations of
customers the internal customers (employees) satisfaction was also determined. The customer
satisfaction survey helped to determine the knowledge on products and company possessed by
front end staff.

The results from the survey helped to understand customers’ expectations from
HDFC Bank. It also helped in determining the extent of marketing efforts needed. The results
from employee satisfaction survey helped to understand the concerns of the front end staff.

Industry / Company Overview

HDFC Bank 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 from Housing Development Finance Corporation
Limited (HDFC), in 1994 during the period of liberalization of the banking sector in India. HDFC
India was incorporated in August 1994 in the name of 'HDFC Bank Limited'. HDFC Bank , one
amongst the firsts of the new generation, tech-savvy commercial banks of India, was set up in
august 1994 after the Reserve Bank of India allowed setting up of Banks in the private sector
.
The Bank was promoted by the Housing Development Finance Corporation Limited, a premier
housing finance company (set up in 1977) of India. Net Profit for the year ended March 31, 2007
was up Rs.1,141.5 crores, up 31.1%. Headquartered in Mumbai,

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

The other bank in Private sector are:-

1. ICICI BANK:- ICICI Bank is India's #2 bank (after State Bank of India) and its largest
private bank, with some 1,500 branches and 4,900 ATMs nationwide. It also has
locations in about 20 other countries. ICICI's retail banking group offers lending and
deposit services to small businesses and individuals; larger businesses are served by the
corporate banking group, which offers finance services and treasury products. The rural
and government banking unit offers micro-loans and agricultural banking. Foreign
operations, as well as services related to international trade finance and expatriate
Indians, fall under the international banking group. Other offerings include online
banking, asset management, and insurance.

2. AXIS BANK:- Axis Bank was the first of the new private banks to have begun
operations in 1994.
 The Bank today is capitalized to the extent of Rs. 358.97 crores with the public holding
(other than promoters) at 57.59%.Presently, the Bank has a very wide network of more
than 729 branch offices and Extension Counters. The Bank has a network of over 3171
ATMs providing 24 hrs a day banking convenience to its customers. This is one of the
largest ATM networks in the country.

The Bank has strengths in both retail and corporate banking and is committed to adopting
the best industry practices internationally in order to achieve excellence.

3. YES BANK:- The Company's principal activities are to provide treasury, banking and
other banking services to corporate and institutional clients, small and medium sized
businesses and retails customers. The Company operates in four segments: Treasury,
Corporate/wholesale Banking, Retail Banking and Other Banking Operations. It accepts
deposits and extends loans as well other value-added products and services to its
customers, including financial markets products and services, transactional banking
products and services, investment banking advisory services and wealth management
products. The Company operates through 123 branches and over 200 ATMs in India.

4. HSBC BANK:- HSBC Bank is a subsidiary of HSBC Holdings plc, a London based
banking giant which, according to the Forbes magazine, is the largest banking group in
the world, and the 6th largest company in the world as of April 2009. HSBC Holdings
had been established in Hong Kong in the year 1990 as the parent company to the
Hongkong and Shanghai Banking Corporation (HSBC). Further, the bank moved its
headquarters from Hong Kong to London. In India, the introduction of HSBC Bank can
be dated as early as the year 1853, with the establishment of the Mercantile Bank of India
in Mumbai. Currently, HSBC Group operates through a number of its subsidiaries in
 India, viz. The Hongkong and Shanghai Banking Corporation Limited (HSBC), HSBC
Asset Management (India) Private Limited, HSBC Global Resourcing / HSBC Electronic
Data Processing (India) Private Limited, HSBC Insurance Brokers (India) Private
Limited, HSBC Operations and Processing Enterprise (India) Private Limited, HSBC
Private Equity Management (Mauritius) Limited. HSBC Bank is well known for having
established the first ATM (Automatic Teller Machine) in India in the year 1987. As of
April 2009, the bank is present in many prominent cities of the country including
Mumbai, New Delhi, Bangalore, Hyderabad, Jaipur, Chandigarh etc.

COMPANY PROFILE
 Housing Development Finance Corporation Limited, more popularly known
as HDFC Bank Ltd, was established in the year 1994, as a part of the liberalization of the Indian
Banking Industry by Reserve Bank of India (RBI). It was one of the first banks to receive an 'in
principle' approval from RBI, for setting up a bank in the private sector. The bank was
incorporated with the name 'HDFC Bank Limited', with its registered office in Mumbai. The
following year, it started its operations as a Scheduled Commercial Bank. Today, the bank boasts
of as many as 1412 branches and over 3275 ATMs across India.

Amalgamations
In 2002, HDFC Bank witnessed its merger with Times Bank Limited (a private sector bank
promoted by Bennett, Coleman & Co. / Times Group). With this, HDFC and Times became the
first two private banks in the New Generation Private Sector Banks to have gone through a
merger. In 2008, RBI approved the amalgamation of Centurion Bank of Punjab with HDFC Bank.
With this, the Deposits of the merged entity became Rs. 1,22,000 crore, while the Advances were
Rs. 89,000 crore and Balance Sheet size was Rs. 1,63,000 crore.

Tech-Savvy
HDFC Bank has always prided itself on a highly automated environment, be it in terms of
information technology or communication systems. All the braches of the bank boast of online
connectivity with the other, ensuring speedy funds transfer for the clients. At the same time, the
bank's branch network and Automated Teller Machines (ATMs) allow multi-branch access to
retail clients. The bank makes use of its up-to-date technology, along with market position and
expertise, to create a competitive advantage and build market share.

Capital Structure
At present, HDFC Bank boasts of an authorized capital of Rs 550 crore (Rs5.5 billion), of this the
paid-up amount is Rs 424.6 crore (Rs.4.2 billion). In terms of equity share, the HDFC Group
holds 19.4%. Foreign Institutional Investors (FIIs) have around 28% of the equity and about
17.6% is held by the ADS Depository (in respect of the bank's American Depository Shares
(ADS) Issue). The bank has about 570,000 shareholders. Its shares find a listing on the Stock
Exchange, Mumbai and National Stock Exchange, while its American Depository Shares are
listed on the New York Stock Exchange (NYSE), under the symbol 'HDB'.
BRIEF HISTORY

HDFC Bank Ltd. (BSE: 500180, NYSE: HDB) is a major Indian financial services company
based in Mumbai, incorporated in August 1994, after the Reserve Bank of India allowed
establishing private sector banks. The Bank was promoted by the Housing Development Finance
Corporation, a premier housing finance company (set up in 1977) of India. HDFC Bank has 1,412
branches and over 3,295 ATMs, in 528 cities in India, and all branches of the bank are linked on
an online real-time basis. As of September 30, 2008 the bank had total assets of INR 1006.82
billion.[4] For the fiscal year 2008-09, the bank has reported net profit of Rs.2,244.9 crore, up 41%
from the previous fiscal. Total annual earnings of the bank increased by 58% reaching at
Rs.19,622.8 crore in 2008-09.

HDFC Bank is one of the Big Four Banks of India, along with State Bank of India, ICICI Bank
and Axis Bank — its main competitors.

HDFC Bank was incorporated in the year of 1994 by Housing Development Finance Corporation
Limited (HDFC), India's premier housing finance company. It was among the first companies to
receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the
private sector.The Bank commenced its operations as a Scheduled Commercial Bank in January
1995 with the help of RBI's liberalization policies.

In a milestone transaction in the Indian banking industry, Times Bank Limited (promoted by
Bennett, Coleman & Co. / Times Group) was merged with HDFC Bank Ltd., in 2000. This was
the first merger of two private banks in India. As per the scheme of amalgamation approved by
the shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank
received 1 share of HDFC Bank for every 5.75 shares of Times Bank.

In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total branches to more than
1,000. The amalgamated bank emerged with a strong deposit base of around Rs. 1,22,000 crore
and net advances of around Rs. 89,000 crore. The balance sheet size of the combined entity is
over Rs. 1,63,000 crore. 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.

Business focus

HDFC Bank deals with three key business segments - Wholesale Banking Services, Retail
Banking Services, Treasury. It has entered the banking consortia of over 50 corporates for
providing working capital finance, trade services, corporate finance and merchant banking. It is
also providing sophisticated product structures in areas of foreign exchange and derivatives,
money markets and debt trading and equity research.

Wholesale banking services

The Bank's target market ranges from large, blue-chip manufacturing companies in the Indian
corp to small & mid-sized corporates and agri-based businesses. For these customers, the Bank
provides a wide range of commercial and transactional banking services, including working
capital finance, trade services, transactional services, cash management, etc. The bank is also a
leading provider of structured solutions, which combine cash management services with vendor
and distributor finance for facilitating superior supply chain management for its corporate
customers. HDFC Bank has made significant inroads into the banking consortia of a number of
leading Indian corporates including multinationals, companies from the domestic business houses
and prime public sector companies. It is recognized as a leading provider of cash management and
transactional banking solutions to corporate customers, mutual funds, stock exchange members
and banks.
Retail banking 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, NetBanking and Mobile Banking.

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 2009, the bank had a total card base (debit and
credit cards) of over 13 million. The Bank is also one of the leading players in the “merchant
acquiring” business with over 70,000 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. These services 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.

Distribution Network
HDFC Bank is headquartered in Mumbai. The Bank has an network of 1,725 branches spread in
771 cities across India. All branches are linked on an online real-time basis. Customers in over
500 locations are also serviced through Telephone Banking. The Bank has a presence in all major
industrial and commercial centres across the country. Being a clearing/settlement bank to various
leading stock exchanges, the Bank has branches in the centres where the NSE/BSE have a strong
and active member base.

The Bank also has 3,898 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

WIDE RANGE OF PRODUCTS

Personal Banking

 Savings Accounts
 Salary Accounts
 Current Accounts
 Fixed Deposits
 Dmat Account
 Safe Deposit Lockers
 Loans
 Credit Cards
 Debit Cards
 Prepaid Cards
 Investments & Insurance
 Forex Services
 Payment Services
 NetBanking
  InstaAlerts
 MobileBanking
 InstaQuery
 ATM
 PhoneBanking

NRI Banking

 Rupee Savings Accounts

 Rupee Current Accounts
 Rupee Fixed Deposits
 Foreign Currency Deposits
 Accounts for Returning Indians
 Quickremit (North America, UK, Europe, Southeast Asia)
 IndiaLink (Middle East, Africa)
 Cheque LockBox
 Telegraphic / Wire Transfer
 Funds Transfer through Cheques / DDs / TCs
 Mutual Funds
 Private Banking
 Portfolio Investment Schemes
 Loans
 Payment Services
 NetBanking
 InstaAlerts
 MobileBanking
 InstaQuery
 ATM
 PhoneBanking
 REVIEW OF LITERATURE

Theoretical framework, background theory:

The literature review examines recent research studies, company data, or industry
reports that acts as a basis for the proposed study. The literature review may also explain the need
for the proposed work to appraise the shortcomings and/or informational gaps in secondary data
sources. in this research project theoretical framework consist terms which is useful for research
analysis.

Market Mapping:
Market mapping is used to develop a clear understanding of how a market actually
works, looking at both the routes or channels to market and the role of influencers. A key stage in
market mapping is to identify who makes the decision between alternative offers, as it is on these
individuals/departments that the segmentation review will focus.

Market Research:
Market research involves the systematic gathering, recording and analyzing of data
about customers, competitors and the market. This links marketers to consumers by supplying
essential information to solve marketing challenges and help with marketing decisions.

The global trend towards consolidation in the financial sector has focused the attention of
policymakers on its potential economic consequences. This can be daunting, because the range of
issues is expansive and the economic literature is by no means conclusive. To appropriately
address consolidation, policy-makers need to consider how it could affect their overall objective
for the financial system, which is to maximize social welfare. Although the financial system
comprises financial institutions, financial markets, and infrastructure arrangements such as the
clearing and settlement systems, this paper focuses on financial institutions, specifically banks. To
understand how the banking system can contribute to social welfare, consider the function of
banks. They provide financial services necessary for enterprises and consumers to undertake their
business: among other things, they provide a means to hold and exchange financial assets, they
intermediate savings to productive investment through the supply of credit to businesses and
consumers, and they enable risk-sharing. Efficient functioning of these activities contributes to
economic growth. Indeed, the fundamental importance to growth of a well-functioning financial
system generally, and of a banking sector specifically, has been established for some time in the
empirical literature on growth.

1. CUSTOMER RELATIONSHIP MANAGEMENT:

Today, many businesses such as banks, insurance companies, and other service providers realize
the importance of Customer Relationship Management (CRM) and its potential to help them
acquire new customers, retain existing ones and maximize their lifetime value. At this point, close
relationship with customers will require a strong coordination between IT and marketing
departments to provide a long-term retention of selected customers. This paper deals with the role
of Customer Relationship Management in banking sector and the need for Customer Relationship
Management to increase customer value by using some analitycal methods in CRM applications.
1.1 CRM Objectives in Banking Sector

The idea of CRM is that it helps businesses use technology and human resources gain insight into
the behavior of customers and the value of those customers. If it works as hoped, a business can:
provide better customer service, make call centers more efficient, cross sell products more
effectively, help sales staff close deals faster, simplify marketing and sales processes, discover
new customers, and increase customer revenues. It doesn't happen by simply buying software and
installing it. For CRM to be truly effective, an organization must first decide what kind of
customer information it is looking for and it must decide what it intends to do with that
information. For example, many financial institutions keep track of customers' life stages in order
to market appropriate banking products like mortgages or IRAs to them at the right time to fit
their needs. Next, the organization must look into all of the different ways information about
customers comes into a business, where and how this data is stored and how it is currently used.
One company, for instance, may interact with customers in a myriad of different ways including
mail campaigns, Web sites, brick-and-mortar stores, call centers, mobile sales force staff and
marketing and advertising efforts. Solid CRM systems link up each of these points. This collected
data flows between operational systems (like sales and inventory systems) and analytical systems
that can help sort through these records for patterns. Company analysts can then comb through the
data to obtain a holistic view of each customer and pinpoint areas where better services are
needed. In CRM projects, following data should be collected to run process engine:
1) Responses to campaigns
2) Shipping and fulfillment dates
3)Sales and purchase data
4) Account information
5) Web registration data
6) Service and support records
7) Demographic data
8) Web sales data.

2. CUSTOMER SATISFACTION IN BANKING SECTOR

Banking operations are becoming increasingly customer dictated. The demand for 'banking
supermalls' offering one-stop integrated financial services is well on the rise. The ability of banks
to offer clients access to several markets for different classes of financial instruments has become
a valuable competitive edge. Convergence in the industry to cater to the changing demographic
expectations is now more than evident. Bancassurance and other forms of cross selling and
strategic alliances will soon alter the business dynamics of banks and fuel the process of
consolidation for increased scope of business and revenue. The thrust on farm sector, health sector
and services offers several investment linkages. In short, the domestic economy is an increasing
pie which offers extensive economies of scale that only large banks will be in a position to tap.
With the phenomenal increase in the country's population and the increased demand for banking
services; speed, service quality and customer satisfaction are going to be key differentiators for
each bank's future success. Thus it is imperative for banks to get useful feedback on their actual
response time and customer service quality aspects of retail banking, which in turn will help them
take positive steps to maintain a competitive edge

2.1 The Need to Measure Customer Satisfaction:

Satisfied customers are central to optimal performance and financial returns. In many places in
the world, business organizations have been elevating the role of the customer to that of a key
stakeholder over the past twenty years. Customers are viewed as a group whose satisfaction with
the enterprise must be incorporated in strategic planning efforts. Forward-looking companies are
finding value in directly measuring and tracking customer satisfaction (CS) as an important
strategic success indicator. Evidence is mounting that placing a high priority on CS is critical to
improved organizational performance in a global marketplace.

With better understanding of customers' perceptions, companies can determine the actions
required to meet the customers' needs. They can identify their own strengths and weaknesses,
where they stand in comparison to their competitors, chart out path future progress and
improvement. Customer satisfaction measurement helps to promote an increased focus on
customer outcomes and stimulate improvements in the work practices and processes used within
the company.

3. TECHNOLOGY IN BANKING SECTOR

The Banking sector in India has experienced a rapid transformation. Just about a decade back this
sector was limited to the sarkari (read nationalized) and co-operative banks. Then came the multi-
nationalbanks,but
these were confined to serving an elite few.

One could regard the past as the 'medieval ages' in the banking industry, wherein every branch of
the same bank acted as an independent information silo, and multi-channel banking (ATMs, Net
banking, tele-banking, etc) was almost non-existent.

3.1 Pressing issues

Today banks have to look much beyond just providing a multi-channel service platform for its
customers. There are other pressing issues that banks need to address in order to chalk-out a
roadmap for the future. Here are the top three concerns in the mind of every bank's CEO.
3.1.1 Customer retention: Customer retention is one of the main priorities for banks today. With
the entry of new players and multiple channels, customers have become more discerning and less
'loyal' to banks. Given the various options, it is now possible to open a new account within
minutes. Or for that matter shift accounts within a couple of hours. This makes it imperative that
banks provide best levels of service to ensure customer satisfaction.

3.1.2 Cost pressures: Cost pressures come into play when banks are not able to afford the cost of a
certain service or initiative although they want to or need to have it in place. This is primarily
because the cost structure at the backend is not efficient enough to offer that kind of service to the
marketplace.

As Gunit Chadha, MD & CEO, IDBI Bank puts it, "In today's world of narrowing margins, a
serious look at costs is definitely an imperative."

3.1.3 Increased competition: The entry of new players into the banking space is leading to
increased competition. A recent example would be of Kotak Mahindra Finance Limited (KMFL)
—a financial services company focused on investment consulting, auto finance, insurance, etc—
morphing into Kotak Bank. Many other such players are waiting on the sidelines.

Technology makes it easier for any company with the right channel infrastructure and money
reserves to get into banking. This has been one of the major reasons behind this kind of
competition from players who do not have a banking background. Kotak Bank overcame the
initial costs of setting up its own ATM network by getting into a sharing agreement with UTI
bank.

3.2 REDEFINING OBJECTIVES

To cope with cost pressures and increased competition as well as to retain existing customers,
banks have started venturing into newer territories.

This is one of the main reasons why banks are focused on retail banking in a big way. The main
advantage of getting into retail banking is that the risks involved are lesser in this segment. There
are lower Non Performing Assets (NPAs) in retail banking. This is one of the reasons why loans
such as those for housing, automotive, etc are being touted by banks like never before. Credit
cards and debit cards is another focus area for banks.

With this banks have redefined their business priorities. They are now focused on:

 Cost reduction
 Product differentiation
 Customer-centric services

Although the ways in which banks implement these vary, the underlying objectives remain the
same.

3.2.1 Cost reductions

Reduced costs basically translate to higher profit margins. If banks can reduce costs, it can go a
long way in increasing profits.

The focus is on increasing the profit margins by cutting costs where it matters—on the operations
side. Banks have woken up to the fact that they need to get into shape fast in order to handle
competition.

"Banks have been increasingly facing sliding margins and fierce competition. It is imperative for
them to increase the volumes and reduce the cost of operations," says K.P. Padmakumar,
Chairman, Federal Bank.

3.2.2 Differentiation

The customer is interested in how he/she can benefit from the bank and its products. That's why it
becomes necessary for a bank to differentiate its products from the others. Some of the ways in
which differentiation can be introduced are through specialization, new products, and increasing
the added value.

Specialization basically means that the bank gets involved only in selected areas. For example, the
bank might be getting involved only in housing finance. Or, it could be limiting its services just
for corporate banking clients. Another way to specialize could be by handling just specific sets of
portfolios.

Banks can differentiate themselves by adding new products to their range of services. This will
provide the bank with better yields per contact. Increasing the added value of products is another
way of differentiation for banks. Operational excellence is also a key factor in effective
differentiation from the competition.

3.2.3 Customer-centric model

Indian banks have realized that it no longer pays to have a 'transaction-based' operating model.
This has led to the development of a relationship oriented model of operations focusing on
customer-centric services.

While banks have to ensure product superiority and operational excellence, the biggest challenge
today is to establish customer intimacy without which the other two are meaningless.
 OBJECTIVES

Objective of the Project:

Primary Objective
To find out the Satisfaction of the HDFC Bank Customers.

Secondary Objective
Sales of Saving Account
 Research Methodology

RESEARCH PLAN:

Preliminary Investigation:
In which data on the situation surrounding the problems shall be gathered to arrive at

· The correct definition of the problem.

· An understanding of its environment.

Exploratory Study:
To determine the approximate area where the problem lies.

RESEARCH DESIGN:

It is a plan of action to be carried out in connection with the research project. It is the guideline
for the researcher to enable him to keep track of his action and to know whether he was moving in
the right direction or not. Research was initiated by examining the secondary data to gain insight
into the problem. By analyzing the secondary data, the study aim is to explore the short comings
of the present system and primary data will help to validate the analysis of secondary data besides
on unrevealing the areas which calls for improvement.

DEVELOPING THE RESEARCH PLAN:

The data for this research project has been collected through self Administration. Due to time
limitation and other constraints direct personal interview method is used. A structured
questionnaire was framed as it is less time consuming, generates specific and to the point
information, easier to tabulate and interpret. Moreover respondents prefer to give direct answers.
 In questionnaires open ended and closed ended, both the types of questions has been used.

COLLECTION OF DATA:

Secondary Data:
It was collected from internal sources. The secondary data was collected
on the basis of organizational file, official records, news papers, magazines, management books
preserved information in the company’s database and website of the company.

Primary data:
All the people from different profession were personally visited and
interviewed. They were the main source of Primary data. The method of collection of primary
data was direct personal interview through a structured questionnaire.

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:
Different professionals Chartered Accountants, Tax Consultants, Lawyers,
Business Man, Professionals and House Wives of NAGPUR.

Sample Technique: Random Sampling.

Research Instrument: Structured Questionnaire.

Contact Method: Personal Interview.

SAMPLE SIZE:

My sample size for this project was 100 respondents. Since it was not possible to cover the whole
universe in the available time period, it was necessary for me to take a sample size of 100
respondents.

DATA COLLECTION INSTRUMENT DEVELOPMENT:

The mode of collection of data will be based on Survey Method and Field Activity. Primary
data collection will base on personal interview. I have prepared the questionnaire according to the
necessity of the data to be collected.
The purpose of the methodology section is to describe the research procedure. This includes the
overall research design, data collection, data interpretation and research report preparation
DATA ANALYSIS, RESULTS AND INTERPRETATION

Q1. Which type of account do you hold?

a. Current Account b. Saving Account c. Fixed Account d. Salary Account

Type of account No of respondent Percentage

Current Account 15 15%
Saving Account 62 62%
Fixed Account 13 13%
Salary Account 10 10%

NO OF RESPONDANCE
10
15

13
Current Account
Saving Account
Fixed Deposit
Salary Account

62

Objective: This question is to know about the type of account customer hold.
Interpretation: The above analysis shows majority of people hold saving account that is 62%
15% hold current account 13% hold fixed account and 10%hold salary account.

Q2. What are the reason for selecting HDFC Bank?

 a. Accessibility b. Service c. Companay A/C d. Brand Name

Reason No of respondent Percentage

Accessibility 18 18%
Service 32 32%
Companay A/C 12 12%
Brand Name 38 38%

No of Respondent

18

Accessibility
38
Service
Companay A/C
Brand Name

32

12

Objective: This question is to know about the reason for selecting Hdfc bank.
Interpretation: The above analysis shows majority of people said that they select Hdfc bank
Because of brand name that is 38%, 32% customer said they select Hdfc bank because of service.
18% said because of Accessibility and 12% because of Companay account.

Q3. Kindly rate the following on a scale of 1-5. Where 1 is least & 5 is Most.
 1. Not Helpful 2. Less Helpful 3. Partially Helpful 4. Helpful 5. Very Helpful

3a) Behaviour of bank staff.

Scale No of respondent Percentage

Not Helpful 2 2%
Less Helpful 8 8%
Partially Helpful 12 12%
Helpful 10 10%
Very Helpful 68 68%

80

70 68%

60

50

40
68
30 Percentage
No of respondent
20

12%
10 10%
8%
12 10
8
2%
2
0
l l l
ul ul pfu fu fu
lp
f
lp
f l le p le p
He He He H yH
t s lly r
No Le
s
rti
a Ve
Pa

Objective: This question is to know about the behaviour of the bank staff.
Interpretation: The above analysis shows that the behaviour of the bank staff is very helpful
that is 68%, 12% said the behaviour is partially helpful ,10% said it is helpful ,8% said less help
full and 2%said not helpful.

Q4.
 3b) Do you find Convenience in opening a bank A/C.

1. Yes 2. No
No of respondent Percentage
Yes 95 95%
No 5 5%

9500%
100
90
80
70
60
Yes
50 No
40
30
20
500%
10 95% 5%
0
No of respondent Percentage

Objective: This question is to know that when customer goes to open a account do they find it
convenience..
Interpretation: The above analysis shows that 95% customer said that they find convenience in
opening a account and 5% said they don’t find convenience in opening bank account.

Q5.
 3c.) Time taken to make a Pay order/DD

1. Less 2. More

No of respondent Percentage
Less 93 93%
More 7 7%

100
9300%
90

80

70

60

50 Less
More
40

30

20

10 700%
93% 7%
0
No of respondent Percentage

Objective: This question is to know that when customer goes to bank for pay order or DD the
time taken is more or less.
Interpretation: The above analysis shows that the time taken is less 93% customer said, and 7%
said the time taken to make pay order or DD is more.

Q6.
 3d.) Availability of A/C related Information

1. Yes 2. No

No of respondent Percentage
Yes 95 95%
No 5 5%

500%
100
90
80
70
60 No
50 Yes
9500%
40
30
20
10 5%
0 95%
No of respondent Percentage

Objective: This question is to know that the availability of a/c related information when
Customer wants to know.
Interpretation: The above analysis shows that the availability of a/c related is given to them
When they ask for that is 95% and 5% said it is not .

Q7.
3e.) Location of the bank

1.Not important 2. Less important 3. Partially important 4. important 5. Very important

Scale No of respondent Percentage

Not important 5 5%
Less important 8 8%
Partially important 9 9%
Important 30 30%
Very important 48 48%

60

50 48

40
30
30

20
No of respondent
8 9 Percentage
10 5
5% 8% 9% 30% 48%
0
nt nt nt nt nt
rta rta rta rta r ta
po po po p o po
im im im im im
t ss lly r y
No Le tia Ve
r
Pa

Objective: This question is to know about the location of the bank.

Interpretation: The above analysis shows that majority of the customer said that the
Location of the bank is very important that 48%, 30% customer said it is important 9%
Customer said it is partially important , 8% said it is less important and 5% said it is not important
to them.

Q8.
 3f.) Ambience of the bank

1.Not important 2. Less important 3. Partially important 4. important 5. Very important

Scale No of respondent Percentage

Not important 2 2%
Less important 13 13%
Partially important 16 16%
Important 19 19%
Very important 50 50%

50
50
45
40
35
30
25
19
20 16 No of respondent
13 Percentage
15
10
5 2
1.40% 8.70% 10.70% 12.70% 33.40%
0

Objective: This question is to know about the ambience of the bank.

Interpretation: The above analysis shows that 50% customer said it is very important,
19% said important 16% said partially important 13% said that it is less important and 2%
Said it is not important to them.

Q9.
3g.) ATM Service of the bank

1.Not important 2. Less important 3. Partially important 4. important 5. Very important

Scale No of respondent Percentage

Not important - -
Less important - -
Partially important 5 5%
Important 15 15%
Very important 80 80%

90
80%
80

70

60

50 Percentage -
80 No of respondent - -
40

30

20 15%

10 5%

0
Partially important important Very important

Objective: This question is to know about the ATM Service of the bank.
Interpretation: The above analysis shows that 80% customer said it is very important,
15% said important 5% said partially important.

Q10.
3h.) Phone banking Service of the bank

1. Not Helpful 2. Less Helpful 3. Partially Helpful 4. Helpful 5. Very Helpful

Scale No of respondent Percentage

Not Helpful 43 43%
Less Helpful 32 32%
Partially Helpful 6 6%
Helpful 9 9%
Very Helpful 10 10%

50
45 43
40
35 32
30
25
20
No of respondent
15 Percentage
9 10
10
6
5
0
l l l l l
fu fu fu fu fu
lp lp lp lp le p
e e e e
tH H yH H yH
No ess all Ve
r
L r ti
Pa

Objective: This question is to know about the Phone banking Service of the bank.
Interpretation: The above analysis shows that 43% customer said that it is not helpful
To them, 32% said less helpful 6% said partially helpful 9% said it is help ful and 10% said that it
is very helpful to them.

Q11.
 3i.) Convenience of depositing/withdrawing money from bank

1.Yes 2. No

No of respondent Percentage

Yes 98% 98%

No 2% 2%

120

100 9800%

80

60 Yes
No

40

20

200% 2% 98%
0
No of respondent Percentage

Objective: This question is to know about the Convenience of depositing/withdrawing money

from bank.
Interpretation: The above analysis shows that 98% customer said that they find Convenience of
depositing/withdrawing money from bank and 2% said that they don’t find Convenience of
depositing/withdrawing money from bank

Q12.
3j.) Availability on information on various product of the bank

1. Not Helpful 2. Less Helpful 3. Partially Helpful 4. Helpful 5. Very Helpful

Scale No of respondent Percentage

Not Helpful 10 10%
Less Helpful 12 12%
Partially Helpful 19 19%
Helpful 20 20%
Very Helpful 39 39%

39
40

35

30

25
20
19
20 No of respondent
Percentage
15 12
10
10

5
7% 8% 13% 13% 26%
0
Not Helpful Less Helpful Partially Helpful Helpful Very Helpful

Objective: This question is to know about the availability on information on various product of
the bank.

Interpretation: The above analysis shows that 39% customer said that availability on
information on various product of the bank. is very helpful 20% customer said that it is helpful
and 19% said it is partially helpful 12% said that it is less helpful and 10% of the customer said
that it is not helpful to them.

Q13.
3k.) Problem Resolution

1. Yes No
No of respondent Percentage
Yes 95 95%
No 5 5%

9500%
100
90
80
70
60 Yes
50 No
40
30
20 500%
95% 5%
10
0
No of respondent Percentage

Objective: This question is to know about the Problem Resolution which customer faces in
bank. .

Interpretation: The above analysis shows that 95% of the customer are satisfied when they face
problem because the problem is being resolved by the bank staff and 5% said that they are
Not satisfied when they face problem.

FINDINGS
 Customer are more concentrated towards saving a/c i.e. approx 62%.
 The majority of people said that they select Hdfc bank, Because of brand name that is
38%, 32% customer said they select Hdfc bank because of service. 18% said because of
accessibility and 12% because of company account.
 The behaviour of the bank staff is very helpful that is 68%, 12% said the behaviour is
partially helpful, 10% said it is helpful, 8% said less help full and 2% said not helpful.
 The above analysis shows that 95% customer said that they find convenience in opening a
account and 5% said they don’t find convenience in opening bank account.
 The time taken is less 93% customer said, and 7% said the time taken to make pay order
or DD is more.
 The availability of a/c related is given to them when they ask for that is 95% and 5% said
it is not.
 The majority of the customer said that the location of the bank is very important that 48%,
30% customer said it is important, 9% Customer said it is partially important, 8% said it is
less important and 5% said it is not important to them.
 50% customer said that ambience is very important, 19% said important 16% said
partially important 13% said that it is less important and 2% said it is not important to
them.
 80% customer said ATM services is very important, 15% said important 5% said partially
important.
 43% customer said that phone banking services is not helpful to them, 32% said less
helpful 6% said partially helpful 9% said it is help full and 10% said that it is very helpful
to them.
 The analysis shows that 98% customer said that they find Convenience of
depositing/withdrawing money from bank and 2% said that they don’t find Convenience
of depositing/withdrawing money from bank.
 The analysis shows that 39% customer said that availability on information on various
products of the bank is very helpful 20% customer said that it is helpful and 19% said it is
 partially helpful 12% said that it is less helpful and 10% of the customer said that it is not
helpful to them.
 The analysis shows that 95% of the customer are satisfied when they face problem
because the problem is being resolved by the bank staff and 5% said that they are not
satisfied when they face problem.
 CONCLUSIONS

 Through this project, it could be concluded that people are not aware about the various
products of the bank.

 Report also explores that, Customer choose the Bank because of Brand name.

 The survey throws light on Issues that the customer faces while operating account.

 The major competitors for HDFC bank are State Bank of India, Icici bank,

 By this report, company can understand the requirement of customers.

 Most of customer are satisfied with HDFC Bank .

 LIMITATIONS

 Survey was only conducted in BUTIBORI & MIDC

 Only 100 questionnaires were filled in different age and occupation groups due to time
constraint.
 Combining question 1 and 2 it becomes obvious that most people are satisfied about the
Saving A/C of HDFC. The interpretation doesn’t reveal the satisfaction of other products.
 Since 70% of my sample are CASA A/C holders so its wrong to conclude that very few
people use FD, Mutual Fund, Dmat.
 Since my study did not include the income of the people I was not able to categorize the
use of the product with the income group and study if any correlation existed.
 RECOMMENDATIONS

 More number of ATMs in the Butibori & MIDC.

 More aggressive sale is needed for professors, lecturers, and staff members who the best
customer of savings accounts. A Special students' savings account with AQB of fewer
amounts could be launched Savings account for working professionals and self employed
youths could be started with facilities like free registration in top business consultancies,
job consultancies, hassle-free personal loans, free dmat account and discounted
membership in some reputed clubs.

 Ensure the best after sale services by replacing the faulty ones immediately after getting
complain.

 A group promotional activity aiming, encouraging card holder to use their card to its
fullest should be undertaken.

 The timings of the bank to be extended from 8a.m to 6p.m.

 With every purchase, card holders be awarded with some credit points and on the end of
every quarter , special gifts should be given or discount offers on some items produced by
some company can be given, which will be sponsored by the producer, the shopkeeper and
the banker.

 There should be no hidden charges and to be explained when demanded for.

 APPENDIX
Questionnaire
Respected/Sir/Madam,
I am a student of INDIRA SCHOOL OF BUSINESS STUDIES hereby
conducting a survey on “Customer’s Perception Towards the Product and Service Offered by
HCDF Bank in Rural Areas And Comparative Analysis” I assure you this information will be
used for education purpose only.

Q1. Which type of A/C do you hold?

a. Current Account b. Saving Account c. FD d. Salary Account

Q2. What are the reason for selecting HDFC Bank?

a. Accessibility b. Service c. Companay A/C d. Brand Name

Q3. Kindly rate the following on a scale of 1-5. Where 1 is least & 5 is Most.
1. Not Helpful 2. Less Helpful 3. Partially Helpful 4. Helpful 5. Very Helpful

3 a) Behaviour of bank staff.

3 b.) Convenience in opening a bank A/C.

1. Yes 2. No

3 c.) Time taken to make a Pay order/DD

1. Less 2. More

3 d.) Availability of A/C related Information

1. Yes 2. No

3 e.) Location of the bank

1.Not important 2. Less important 3. Partially important 4. important 5. Very important
3 f.) Ambience of the bank
1.Not important 2. Less important 3. Partially important 4. important 5. Very important

3 g.) ATM Service of the bank

1.Not important 2. Less important 3. Partially important 4. important 5. Very important

3 h.) Phone banking Service of the bank

1. Not Helpful 2. Less Helpful 3. Partially Helpful 4. Helpful 5. Very Helpful

3 i.) Convenience of depositing/withdrawing money from bank

1.Yes 2. No

3 j.) Availability on information on various product of the bank

1. Not Helpful 2. Less Helpful 3. Partially Helpful 4. Helpful 5. Very Helpful

3 k.) Problem Resolution

1. Yes No

Personal Information:

Name:-………………………………………...................................................................................
Age…………………………………………Gender:-M/F…………………………………….
Designation:-………………………………Company name:-…………………………………
Address:-………………………………………………………………………………………...
Phone No:-……………………………………E-mail address:-………………………………..
 BIBLOGRAPHY

 Kotler Philip (2001) Marketing Management (10TH and 12th Edition) Prentice Hall India
Private Limited, New Delhi.
 Krishnaswami O. R. & Ranganatham M. (2007) Methodology Of Research In Social
Sciences (2nd Revised) Himalaya Publication House, New Delhi.
 Kothari C. R. (2004) Research methodology (2nd Edition) New Age International
Publishers, New Delhi.

 Websites:-

 www.hdfcbank.com
 www.icicibank.com
 www.axisbank.com
 www.sbi.com
 www.google.com
 www.kotak.com
 www.yahoofinance.com