UNIVERSITY OF JAMMU

PROJECT REPORT

ON

“PERCEPTION OF CUSTOMER REGARDING SERVICE

QUALITY OF HDFC BANK’’
Submitted in fulfillment for the award of degree of bachelor in business

Administration to the university of Jammu

(2020-2021)

Submitted To: Submitted by:

Ajay Sharma Kritma Sharma

University Roll No: 603150007

DEPARTMENT OF BUSINESS MANAGBEMENT

GOVERNMENT DEGREE COLLEGE, KATHUA

(J&K)
 PREFACE

As a part of our course, I had to go through a summer training project report on any topic
to get the practical aspects of business management.

I want to express my gratitude for experience and practical knowledge that I learn during
the summer internship. In this report, I had presented my great experience in the form of
words.

The project flow logically of questionaries and face-to-face interaction with customer and
employees to collect information require for project. I have tried my upmost to make this
report a reader friendly and try to fulfill my objective of study.

KRITMA SHARMA
 CERTIFICATE

This is to certify that _______________________________

D/o ___________________________________ student of BBA part 3 rd

Bearing roll no.____________________ has completed his project on the

Topic ____________________________________________________________

_________________________________________________________________

Under my guidance and supervision during the academic year 2015-16

In the partial fulfillment of requirements for awarding the degree of Bachelors of business
administration by the university of Jammu.

To the best of my knowledge, the work done by student is original and will be a valuable
source of scholars and organization to carry advance research work.

SIGNATURE

KRITIMA SHARMA
 ACKNOWLEDGEMENT

I wish to express my gratitude to HDFC BANK for giving me an opportunity to do a

project with them. Working with such a great market leader was an appreciable experience

The Project topic “PERCEPTION OF CUSTOMER REGARDING SERVICE

QUALITY OF HDFC BANK’’ offered a great learning experience. During the tenure of
the project, I was fortunate to have interacted with people who in their own capacities have
encouraged, motivated and guided me.

Firstly, I take this opportunity to thank Mr. Ashok kumar branch manager and my external
project guide at HDFC BANK who has been contributory, influential and instrumental in
my process from the very beginning of my internship. I thank him for guiding my
judgment, constantly pushing the upper limits of my capabilities, encouraging and
invigorating me to deliver more.

I also express my deep sense of gratitude to MR. JASVINDER SINGH [HOD] and other
teachers and staff members who extended their guidance and support from time to time.

It is my duty to express gratitude to the HDFC BANK which has provided me the
opportunity to complete project work in the organization.

I express my sincere gratitude and indebtedness towards my mentor Mr. AJAY SHARMA
for their able guidance because of which I was able to conclude and complete my project
report without any sort of hindrances and impediments.

Last but not the least, I pay my thanks to all my friends, sidekicks, and family members for
their kind support and cooperation. I would also like to thank all respondents who rendered
their precious time to fill the questionnaires which made my project more appealing and
authentic.

KRITIMA SHARMA
 DECLARATION

I do hereby declare that the report title “PERCEPTION OF CUSTOMER

REGARDING SERVICE QUALITY OF HDFC BANK’’ is a record of bonafide work
done by me under the supervision of Mr. Ajay sharma and submitted to Govt. Degree
College, Kathua in partial fulfilment of the requirements for the award of degree of
Bachelor of Business Administration.

KRITMA SHARMA
 INDEX

CONTENTS PAGE NO.1

1.INTRODUCTION

1.1 SERVICE OF HDFC BANK

2. REVIEW OF LITERATURE

3. INDUSTRY AND COMPANY PROFILE

4. RESEARCH METHODOLOGY

4.1 OBJECTIVES

4.2 IMPORTANCE AND SCOPE OF STUDY

4.3 RESEARCH SAMPLE

5. DATA ANALYSIS AND INTERPRETATION

6. FINDINGS, SUGGESTION AND CONCLUSION

6.1 MAJOR FINDINGS OF THE REPORT

6.2 SUGGESTION

6.3 CONCLUSION
ANNEXURE

BIBLIOGRAPHY

REFERENCES

QUESTIONNAIRE
 CHAPTER 1

INTRODUCTION:-

1
 INTRODUCTION TO BANKING

Banks play an important role in the economic development 0f the country. It is a financial
institution that accepts deposits and channels those deposits into lending activities either
directly or through the capital market. A bank connects customers which have capital
deficits to those customers surpluses. The banking industry in India is facing certain
challenges i.e., challenges of quality service, customer satisfaction, customer retention,
customer loyalty. Quality service plays a major role in achieving customer satisfaction
and creating brand loyalty in the banking sector.

Service with a smile:

HDFC Bank Ltd. is an Indian banking and financial services company headquartered in
Mumbai, maharashtra. It has a base of 120,000 permanent employees as of April 2021.
HDFC Bank is India's largest private sector lender by assets. It is the largest bank in India
by market capitalization as of march 2021.

Key people

Shyamala Gopinath

(Non-Ex Chairperson) [1]

Aditya puri

(Managing Director) [2][3]

Products

credit cards, consumer banking, banking, finance and insurance, investment banking,
mortgage loans, private banking, private equity, wealth management [4]

Revenue

₹147,068.27 crores (us$21 billion) (2020) [5]

2
Operating income

₹114,032.21 crore (us$16 billion) (2020) [5]

Net income

₹27,253.95 crore (us$3.8 billion) (2020) [5]

Total assets

₹1,580,830.44 crore (US$220 billion) (2020) [6]

Today’s finicky banking customers will settle for nothing less. The customer has
come to realize somewhat belatedly that he is the king. The customer’s 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 a financial house that will more than
just clear his cheque and update 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
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 “PERCEPTION OF A CUSTOMER REGARDING SERVICE QUALITY OF HDFC
BANK”.

3
 CHAPTER 2

REVIEW OF LITERATURE: -

4
In the days of intense competition, the banks are no different from any other consumer
marketing company. It has become essential for the service firms in general and banks in
particular to identify what the customer's requirements are and how those customer
requirements can be met effectively. In the days where product and price differences are
blurred, superior service by the service provider 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. The benefits of service quality 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. The construct of service quality has therefore been a subject of great
interest to service marketing researchers.

Service quality has been defined by various experts in various ways as: 'Service
Quality is the difference between customers' expectations for service performance prior to
the service encounter and their perceptions of the service received.' According to Gefan
„Service quality is the subjective comparison that customers make between the qualities of
service that they want to receive and what they actually get.' Parasuraman says, 'Service
quality is determined by the differences between customer's expectations of a service
provider's performance and their evaluation of the services they received.

Service quality is 'the delivery of excellent or superior service relative to

customer expectations‟. Service quality is recognized as a multidimensional construct.
While the number of dimensions often varies from researcher to researcher, there is some
consensus that service quality consists of three primary aspects: outcome quality,
interaction quality, and physical service environment quality. Outcome quality refers to the
customer's assessment of the core service which is the prime motivating factor for obtaining
the services (e.g., money received from ATM). Interaction quality refers to the customer's
assessment of the service delivery process, which is typically rendered via a physical
interface between the service provider, in person, or via technical equipment, and the
customer. It includes, for instance, the consumer's evaluation of the attitude of the service
providing staff. The physical service environment quality dimension refers to the
consumer's evaluation of any tangible aspect associated with the facilities or equipment
that the service is provided in/ with. It includes, for example, the physical conditions of an
ATM machine.

5
 The most popular dimensions of service quality--features five dimensions:
tangibles, reliability, responsiveness, empathy, and assurance. The tangible dimension
corresponds to the aforementioned physical environment aspect, the reliability dimension
corresponds to the service outcome aspect, and the remaining three represent aspects of
interaction quality. Both the costs and the revenue of firms are affected by repeat purchases,
positive word-of-mouth recommendation, and customer feedback. Moreover, there is
strong evidence that service quality has either a direct influence on the behavioral
intentions of customers and/or an indirect influence on such intentions, mediated through
customer satisfaction.

RATER is an instrument that might be used to define and measure banking service
quality and to create useful quality-assessment tools.

The RATER may finally provide the following benefits to the HDFC bank:

• It is the first approach to add and mix the customers‟ religious beliefs and cultural
values with other quality dimensions.

• It provides for multi-faced analysis of customer satisfaction.

• It links quality with customers‟ satisfaction and service encounters.

• It provides information at several levels, already organized into meaningful

groupings.

• It is a proven approach, which results in usable answers to meet customer’s needs.

• It is empirically grounded, systematic and well documented.

Banks’s managers can use the RATER model and its dimensions first to identify the
following issues:

6
DIMENSIONS OF SERVICE QUALITY: -

TANGIBILITY: This dimension deals with modern looking equipment and visually
appealing parts of banks.

RELIABILITY: This dimension has a direct positive effect on perceived service quality
and customer satisfaction in banking institutions. Banks must provide error free service
and secure online transactions to make customers feel comfortable.

RESPONSIVENESS: Customers expect that the banks must respond to their inquiry
promptly. Responsiveness describes how often a bank voluntarily provides services that
are important to its customers. Researchers examining the responsiveness of banking
services have highlighted the importance of perceived service quality and customer
satisfaction.

ASSURANCE: Customers expect that the bank must be secured and the behavior of the
employees must be encouraging.

EMPATHY: individual attention, customized service and convenient banking hours are
very much important in today’s service.

In order to achieve better understanding of service quality in the banking sector, the
proposed five service quality dimensions are conceptualized to illustrate the overall service
quality of the banking in relation to customers‟ and providers perspective.

Banking was in the sector featuring medium goods and higher customer producer
interactions, since in banking, consumers and service providers interact personally and the
use of goods is at a medium level. Hence, in banking, where there are high customer-
producer interactions, the quality of service is determined to a large extent by the skills and
attitudes of people producing the service.

In the case of services, because customers are often either direct observers of the
production process or active participants, how the process is performed also has a strong
influence on the overall impression of the quality of service. A well-performed service
encounter may even overcome the negative impression caused by poor technical quality as

7
well as generate positive word-of-mouth, particularly if customers can see that employees
have worked very hard to satisfy them in the face of problems outside their control.
Employees are part of the process, which connects with the customer at the point of sale,
and hence employees remain the key to success at these service encounters or “moments
of truth”. It is these encounters with customers during a service that are the most important
determinants of overall customer satisfaction, and a customer’s experience with the service
will be defined by the brief experience with the firm’s personnel and the firm’s systems.
The rudeness of the bank’s customer service representative, the abruptness of the employee
at the teller counter, or the lack of interest of the person at the check deposit counter can
alter one’s overall attitude towards the service, perhaps even reversing the impression
caused by high technical quality.

Another important service quality factor, competence, is defined by whether the

bank performs the service right the first time, whether the employees of the bank tell
customers exactly when services will be performed, whether the bank lives up to its
promises, whether customers feel safe in their transactions with the bank and whether the
employees show a sincere interest in solving the customers‟ problems. In short, this
dimension is related to the banks‟ ability to perform the promised service accurately and
dependably. Performing the service dependably and accurately is the heart of service
marketing excellence. When a company performs a service carelessly, when it makes
avoidable mistakes, and when it fails to deliver on promises made to attract customers, it
shakes customers‟ confidence in its capabilities and undermines its chances of earning a
reputation for service excellence.

It is very important to do the service right the first time. In case a service problem
does crop up, by resolving the problem to the customers satisfaction, the company can
significantly improve customer retention. However, companies fare best when they prevent
service problems altogether and fare worse when service problems occur and the company
either ignores them or does not resolve them to the customers satisfaction.

Performing the service accurately is perhaps the most important factor in service
quality excellence. The cost of performing the service inaccurately includes not only the
cost of redoing the service but also the cost associated with negative word-of-mouth

8
generated by displeased customers. In the case of services, the factory is the field. Again,
services are intangible and hence the criteria for flawless services are more subjective than
the criteria for defect-free tangible goods. Hence for most services, customers‟ perceptions
of whether the service has been performed correctly, and not provider-established criteria,
are the major determinants of reliability.

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. Such visual factors help consumers
form their initial impressions. A crucial challenge in service marketing is that customers
cannot see a service but can see the various tangibles associated with it - all these tangibles,
the service facilities, equipment and communication materials are clues about the
intangible service. If unmanaged, these clues can send to the customers wrong messages
about the service and render ineffective the marketing strategy of the company. On the
other hand, improving quality through tangibles means attention to the smallest details that
competitors might consider trivial. Yet, these visible details can add up for customers and
signal a message of caring and competence.

Customers may reveal new aspects of service quality in banking that are important
to them, and these would have to be incorporated in the scale so as to further explore the
concept of service quality in the banking arena

9
 CHAPTER 3

INDUSTRY

AND

COMPANY PROFILE

10
INDUSTRY PROFILE:-

Indian Banking Sector is extremely critical for the economic development of the country.
The last decade witnessed unprecedented growth and value creation in India’s banking
sector with little impact from the global financial crisis due to strong regulation and
discipline. However, the scenario is now changing due to various reasons. Tightening of
increased monetary policy, a burgeoning fiscal and current account deficit, the need for
infrastructure lending, de-regulation of interest rates on savings accounts, etc. have diluted
the robust performance of banks in comparison to other sectors. The RBI had increased
lending rates 13 times between March 2010 and October 2011 in a bid to rein in inflation.
A direct result of this has been the impact on demand, leading to reduced revenue, lower
margins and an increase in non –performing assets (NPAs) of banks. Today, there are
various concerns facing the Indian Banking Industry. However, some of the issues that
need immediate attention are as follows: Financial Inclusion – Financial inclusion refers to
delivery of banking services at an affordable cost to the vast sections of disadvantaged and
low-income groups.

Priority Sector Lending – It is based on bringing unbanked into the banking community.
While sectors included under PSL meet this overarching agenda, it also has to be feasible
and self-sustaining. Banks are being asked to use Banking Correspondents (BCs) to help
meet with their PSL targets.
Payment System - The Reserve Bank aims to develop a more efficient and integrated
payment system in the country. In its 'Payment Systems in India: Vision 2012-15'
document, main focus of RBI is to provide a modern electronic payments system that is
safe, simple and low-cost for use by all. Investments in Physical Gold and Real Estate -
Today, a lot of money is invested by Indian households in acquiring physical gold and real
estate industry that involves huge cash transactions. It is therefore extremely essential for
the government to look at ways to reduce high cash transactions so that the money could
be channelized by the banks in other revenue generation schemes and liquidity in the
system remains intact. On the other hand, though investments in the real estate sector
contribute to employment creation, it should be made more transparent so that the black

11
money flowing into this sector is controlled and becomes accountable. There should be
more Digitization of data.

COMPANY PROFILE

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 a dynamic and enthusiastic team determined to accomplish

the vision of becoming a World-class Indian bank. HDFC bank's business philosophy is
based on our five core values - Customer Focus, Operational Excellence, Product
Leadership, People and sustainability. 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.

12
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 five core values -
Operational Excellence, Customer Focus, Product Leadership, People and Sustainability.

CAPITAL STRUCTURE

As on 30-June-2019, the authorized share capital of the Bank is Rs. 650 crores. The
paid-up share capital of the Bank as on the said date is Rs. 546,56,24,542 /- which is
composed of 273,28,12,271 equity shares of the face value of Rs 2/- each. The HDFC
Group holds 21.31% of the Bank's equity and about 18.81% of the equity is held by the
ADS / GDR Depositories (in respect of the bank's American Depositary Shares (ADS) and
Global Depository Receipts (GDR) Issues). 31.37% of the equity is held by Foreign
Institutional Investors (FIIs) and the Bank has 6,53,843 shareholders.

The shares are listed on the BSE Limited and The National Stock Exchange of
India Limited. The Bank's American Depositary Shares (ADS) are listed on the New York
Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's Global Depository
Receipts (GDRs) are listed on Luxembourg Stock Exchange under ISIN No
US40415F2002.

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

13
VISION STATEMENT OF HDFC BANK: -

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: -

• Operational excellence.

• Customer Focus.

• Product leadership.

• 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 the needs of customers who seek distinct
financial solutions, information and advice on various investment avenues.

BUSINESS STRATEGY: -

• Increasing market share in India’s 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.

DISTRIBUTION OF NETWORK: -

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network
of over 5,314 branches spread over 2,768 cities across India. All branches are linked on an
online real-time basis. Customers Across India are also serviced through multiple delivery
channels such as Phone Banking, Net Banking, Mobile Banking, and SMS based banking,

14
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 13,514 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.

15
 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.

MERGERS

HDFC Bank merged with Times Bank in February 2000. This was the first merger
of two private banks in the New Generation private sector banks category. Times Bank was
established by Bennett, Coleman and Co. Ltd., commonly known as The Times Group,
India's largest media conglomerate.

In 2008, Centurion Bank was acquired by HDFC Bank. HDFC Bank Board approved
the acquisition of CBOsxP for 95.1 billion INR in one of the largest mergers in the financial
sector in India.

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

16
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 prioritized its engagement in technology and the internet as one of
its key goals and has already made significant progress in web-enabling its core businesses.
In each of its businesses, the Bank has succeeded in leveraging its

market position, expertise and technology to create a competitive advantage and build
market share.

QUALITY POLICY: -

SECURITY: The bank provides long term financial security to their policyholders. The
bank does this by offering life insurance and pension products.

TRUST: The bank appreciates the trust placed by their policyholders 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.

INTEGRITY

CUSTOMER CENTRIC

PEOPLE CARE “ONE FOR ALL AND ALL FOR ONE”

TEAM WORK

JOY AND SIMPLICITY

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.

17
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 Agri-based businesses. For these
customers, the Bank provides a wide range of commercial and transactional banking
services, including working capital finance, trade services, transactional services, cash
management, etc. The bank is also a leading provider of structured solutions, which
combine cash management services with vendor and distributor finance for facilitating
superior supply chain management for its corporate customers. Based on its superior
product delivery / service levels and strong customer orientation, the Bank has made
significant inroads into the banking consortia of a number of leading Indian corporates
including multinationals, companies from the domestic business houses and prime public
sector companies. It is recognized as a leading provider of cash management and
transactional banking solutions to corporate customers, mutual funds, stock exchange
members and banks.

Retail Banking 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 the 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.

18
HDFC Bank was the first bank in India to launch an International Debit Card in association
with VISA (VISA Electron) and issued 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
liberalization of the financial markets in India, corporates need more sophisticated risk
management information, advice and product structures. These and fine pricing on various
treasury products are provided through the bank's Treasury team. To comply with statutory
reserve requirements, the bank is required to hold 25% of its deposits in government
securities. The Treasury business is responsible for managing the returns and market risk
on this investment portfolio.

Awards and Accolades: -

HDFC Bank began operations in 1995 with a simple mission: to be a "World-class

Indian Bank". We realized that only a single-minded focus on product quality and service
excellence would help us get there. Today, we are proud to say that we are well on our way
towards that goal.

Over the years, the Bank has received recognition and awards from several leading
organizations and publications, both domestic and international.

19
 CHAPTER 4

RESEARCH METHODOLOGY: -

20
RESEARCH OBJECTIVE: -

The objective of the study is as follows:

• To examine the essential dimensions of service quality i.e., Reliability, Assurance,

Tangibility, Empathy and Responsiveness of HDFC bank and its effect on
customers satisfaction.

• 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 is 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 Jammu Only.

21
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 19 questions which reflect on the type and
quality of services provided by the banks to the customers. The response of the customer
and this 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 a bank
a depth study was done from 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 of 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.

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

22
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 the whole universe, it becomes
necessary to take samples 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 survey was conducted in the city of kathua with branch of HDFC Bank hatli
morh, with 100 customers as respondents.

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 bank
customers 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
limitations faced, as it was difficult to analyses and come to a right conclusion.

• In our study I have included 100 customers of the bank because of the time limit.

23
 CHAPTER 5

DATA ANALYSIS

AND

INTERPRETATION

24
DATA ANALYSIS: -

I have conducted a market survey on 100 customers to analyses their satisfaction

level, for this purpose I have prepared a questionnaire to collect the information from
them.

Ques. Age of Respondent

AGE CATEGORY NO. OF RESPONDENT NO. OF RESPONDENT

IN (%)
18-23 Years 25 25%

24-29 Years 23 23%

30-35 Years 33 33%

35 Years and above 19 19%

TOTAL 100 100

INTERPRETATION

From the table and graph above it can be seen that

• 25% of respondents are 18 to 23 years old.

• 23% of respondents are 24 to 29 years old.

• 33% of respondents are 30 to 35 years.

• 19% of respondents are 35 to above years.

25
Ques. Educational qualifications

QUALIFICATION NO. OF NO. OF

RESPONDENT RESPONDENT IN
(%)
UNDER 41 41
GRADUATE

GRADUATE 34 34

POST GRADUATE 25 25

TOTAL 100 100

INTERPRETATION

From the table above it can be seen that.

⮚ 41% respondents are Under graduate.

⮚ 34% respondents are Graduate.

⮚ 25% respondents are Post graduate.

26
TANGIBILITY DIMENSION OF SERVICE QUALITY (Questions1 to 4):

Physical facilities, equipment’s and appearance of personnel

Ques.1 HDFC bank has modern looking equipment.

SCALE NO. OF NO. OF

RESPONDENT RESPONDENT IN (%)
STRONGLY 15 15
DISAGREE

DISAGREE 18 18

UNCERTAIN 9 09

AGREE 23 23

TOTAL 100 100

INTERPRETATION

HDFC bank has modern-looking and hi-tech equipment. Here analysis shows that
most of the respondents disagreed with this statement. Among the total
respondents ⮚ 18% disagreed, 9% were neutral, 23% agreed, 35% strongly agreed.
After analysis I found that the majority of the respondents think that HDFC Bank has
modern looking equipment or no hi-tech equipment.

27
Ques.2 The bank's physical features are visually appealing.

SCALE NO. OF NO. OF

RESPONDENT RESPONDENT IN
(%)
STRONGLY 12 12
DISAGREE

DISAGREE 10 10

UNCERTAIN 8 08

AGREE 25 25

STRONGLY 45 45
AGREE

TOTAL 100 100

INTERPRETATION

HDFC bank's physical facilities are visually appealing. From this statement I found
that 45%strongly agreed. 8 % were uncertain and 10% disagreed.
Out of the total respondents only 10% disagreed with the statement. 45% people
agreed that HDFC bank's physical facilities are visually appealing.

28
Ques.3 The bank's reception desk employees are neat appearing.

SCALE NO. OF NO. OF

RESPONDENT RESPONDENT IN
(%)
STRONGLY 10 10
DISAGREE
DISAGREE 15 15
UNCERTAIN 20 20
AGREE 35 35
STRONGLY AGREE 25 25
TOTAL 100 100

INTERPRETATION

HDFC bank employees appear neat. Here analysis shows that the majority agreed.
Among the total respondents 20% were neutral, 35% people agreed and 25%
respondents strongly agreed, 10% strongly disagreed and the rest disagreed. From
analysis I found that most of the respondents agreed with this statement that the bank
reception desk of the employees of the HDFC bank appeared neat.

29
Ques.4 Materials associated with the service (such as pamphlets or statements) are
visually appealing at the bank.

SCALE NO. OF NO. OF RESPONDENT

RESPONDENT (%)

STRONGLY 10 10
DISAGREE
DISAGREE 16 16

UNCERTAIN 25 25

AGREE 20 20

STRONGLY 29 29
AGREE

TOTAL 100 100

INTERPRETATION

Materials associated with the service are visually appealing at HDFC bank. Here 20%
respondents agreed with this statement and 29% strongly agreed with this
statement. 25% were neutral and 16% disagreed and 10% strongly disagreed. Hence,
in general it can be concluded that materials associated with the services such as
pamphlets or statements are visually appealing.

30
RELIABILITY DIMENSION OF SERVICE QUALITY (Questions 5 to 8):

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 NO. OF No. OF

RESPONDENT RESPONDENT IN
(%)
STRONGLY 15 15
DISAGREE
DISAGREE 13 13
UNCERTAIN 17 17
AGREE 19 19
STRONG AGREE 36 36
TOTAL 100 100

INTERPRETATION

My sample size was 100. Here analysis shows that among the total respondents 13
respondents disagreed and 15 respondents agreed with this question. Also, I found
that 17 people were neutral and 13 people strongly disagreed. Hence, I concluded
that the majority of them strongly agreed that the bank, when it promises to do
something by a certain time, does so.

31
Ques. 6 When you have a problem, the bank shows a sincere interest in solving it.

SCALE NO. OF NO. OF

RESPONDENT RESPONDENT IN
(%)
STRONGLY 21 21
DISAGREE
DISAGREE 11 11

UNCERTAIN 23 23

AGREE 25 25

STRONGLY 20 20
AGREE
TOTAL 100 100

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., 21
respondents agreed. Also, I found that 22 were neutral with this statement and 11
were committed to disagree. There were 21 who strongly disagreed. Hence HDFC
bank can be said to be reliable.

32
Ques.7 The bank performs the service right the first time.

SCALE NO. OF NO. OF

RESPONDENT RESPONDENT IN
(%)
STRONGLY 9 9
DISAGREE

DISAGREE 11 11

UNCERTAIN 20 20

AGREE 35 35

STRONGLY AGREE 25 25

TOTAL 100 100

INTERPRETATION

Total sample size was 100. Here analysis shows that among the total respondents
35% people agreed with this statement. They think that HDFC bank performs the
services right the first time. 25% of people strongly agreed with this statement. Also
20% people were neutral and the rest of the respondents 11 disagreed and 9 strongly
disagreed.

33
Ques.8 The bank insists on error free records.

SCALE NO. OF NO. OF

RESPONDENT RESPONDENT IN
(%)
STRONGLY DISAGREE 13 13
DISAGREE 15 15
UNCERTAIN 10 10
AGREE 33 33
STRONGLY AGREE 29 29
TOTAL 100 100

INTERPRETATION

Bank insists on error free records. HDFC bank has proved from my analysis that it
surely insists on error free records as 33% respondents agreed with this statement
and 29% strongly agreed. Only 15% of respondents disagreed and 13% strongly
disagreed and the rest of the respondents were neutral.

34
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 NO. OF RESPONDENT NO. OF

RESPONDENT IN %
STRONGLY DISAGREE 6 6
DISAGREE 18 18
UNCERTAIN 20 20
AGREE 39 39
STRONGLY AGREE 17 17
TOTAL 100 100

INTERPRETATION

Employees in the bank tell you exactly when the services will be performed. Majority
of the respondents agreed with this statement. 39% of respondents agreed and 17%
of respondents strongly agreed. At the same time 18% disagreed and 6% respondent
were Strongly disagreed with this statement. So, most of the respondent were agree this
statement that employees in the bank tell you exactly when the services will be performed

35
Ques. 10 Employees in the bank give your prompt service.

SCALE NO. OF RESPONDENT NO. OF RESPONDENT

IN (%)
STRONGLY DISAGREE 14 14
DISAGREE 18 18
UNCERTAIN 16 16
AGREE 27 27
STRONGLY AGREE 25 25
TOTAL 100 100

INTERPRETATION

employees in HDFC Bank give prompt service. Among the total respondents, 27% and
strongly agreed where 25% .16% people were NE utmost of the respondents agreed
with this statement. According to my analysis, rail and 18% disagreed. There was
14% respondent who strongly disagreed with this statement. SO, most of the
respondents agreed with this statement.

36
Ques.11 Employees in the bank are always willing to help you

SCALE NO. OF NO. OF

RESPONDENT RESPONDENT IN
(%)

STRONGLY 15 15
DISAGREE
DISAGREE 8 8
UNCERTAIN 29 29

AGREE 20 20

STRONGLY 28 28
AGREE

TOTAL 100 100

INTERPRETATION

Employees in HDFC bank are willing to help you. With this statement 8% disagreed,
15% strongly disagreed. 28% were Strongly agreed, 20% people agreed and 29%
respondents were neutral. So, most of the respondents were neutral.

37
Ques.12 Employees in the bank are never too busy to respond to your request.

SCALE NO. OF NO. OF

RESPONDENT RESPONDENT
IN (%)

STRONGLY DISAGREE 2 2
DISAGREE 8 8
UNCERTAIN 21 21

AGREE 37 37
STRONGLY AGREE 32 32
TOTAL 100 100

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 32 strongly agreed and 37agreed. 21
respondents were neutral, 8 respondents disagreed and 2 were strongly disagree.

38
ASSURANCE DIMENSION OF SERVICE QUALITY (Question13 to 15):

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

Ques.13 The behavior of employees in the bank instills confidence in you.

SCALE NO. OF NO. OF RESPONDENT IN

RESPONDENT %

STRONGLY DISAGREE 6 6
DISAGREE 13 13

UNCERTAIN 20 20

AGREE 39 39

STRONGLY AGREE 22 22

TOTAL 100 100

INTERPRETATION

The behavior of employees in HDFC bank instills confidence in you. Here analysis shows
that most of the people agreed. Among the total respondents 13 respondents disagreed, 39
agreed and 22 strongly agreed. There were 6 respondents who strongly disagreed.

39
Ques.14 You feel safe in your transactions with the bank.

SCALE NO. OF NO. OF

RESPONDENT RESPONDENT %

STRONGLY 16 16
DISAGREE
DISAGREE 9 9

UNCERTAIN 35 35

AGREE 23 23

STRONGLY 17 17
AGREE

TOTAL 100 100

INTERPRETATION

With this statement most of the respondents are neutral. Among the total
respondents 23 agreed with this statement and 17 strongly agreed. 35 respondents
were neutral and 16 respondents strongly disagreed and 9 disagreed but most of the
respondents were neutral.

40
Ques.15 Employees in the bank have the knowledge to answer your questions.

SCALE NO. OF NO. OF

RESPONDENT RESPONDENT %

STRONGLY 12 12
DISAGREE
DISAGREE 16 16

UNCERTAIN 21 21

AGREE 32 32

STRONGLY 19 19
AGREE

TOTAL 100 100

INTERPRETATION

From my analysis I found that 32 respondents agreed that employees of HDFC bank
have complete knowledge to answer their questions. 19 respondents strongly agreed
to this statement and only 16 disagreed and 12 strongly disagreed. 21were neutral.

41
EMPATHY DIMENSION OF SERVICE QUALITY (Question16 to 20):

Caring and individualized attention that firm provides to its customers.

Ques.16 The bank gives you individual attention.

SCALE NO. OF NO. OF

RESPONDENT RESPONDENT IN
%
STRONGLY 1O 10
DISAGREE
DISAGREE 13 13

UNCERTAIN 21 21

AGREE 32 32

STRONGLY 24 24
AGREE

TOTAL 100 100

INTERPRETATION

HDFC bank is able to give individual attention to its customers as out of the total
respondents 32 agreed with this statement. 21 of the respondents were neutral and

42
only 13 disagreed and 10 strongly disagreed. From this finding it can be concluded
that it gives individual attention to its customers.

Ques.17The bank has operating hours convenient to all its customers.

SCALE NO. OF NO. OF

RESPONDENT RESPONDENT IN
%
STRONGLY 9 9
DISAGREE
DISAGREE 12 12
UNCERTAIN 18 18
AGREE 37 37
STRONGLY 24 24
AGREE
TOTAL 100 100

INTERPRETATION

HDFC bank has operating hours convenient to all its customers. Out of 100
respondents, 37 respondents agreed with this statement and only 12 respondents
disagreed. Also 24 respondents strongly agreed that the bank has operating hours
convenient to its customers.

43
Ques.18 The bank has your interests best at heart.

SCALE NO. of respondent NO. OF

RESPONDENT IN
%
STRONGLY 13 13
DISAGREE

DISAGREE 10 10

UNCERTAIN 23 23

AGREE 29 29

STRONGLY 25 25
AGREE

TOTAL 100 100

INTERPRETATION

HDFC bank has your best interests at heart. Here analysis shows that 29 respondents
agreed and 25 respondents strongly agreed with this statement. 23 were neutral and
the rest disagreed and strongly disagreed.

44
Ques.19 The employees of the bank understand your specific needs.

SCALE NO. OF NO. OF

RESPONDENT RESPONDENT IN
%
STRONGLY 6 6
DISAGREE
DISAGREE 8 8

UNCERTAIN 25 25

AGREE 34 34

STRONGLY 27 27
AGREE

TOTAL 100 100

INTERPRETATION

Employees of HDFC bank understand specific needs. With this statement most of the
respondents agreed. Among the total respondents 34 respondents agreed and 27
respondents strongly agreed. 8 respondents disagreed and 6 strongly disagreed with
this statement.

45
 MEASURING SERVICE QUALITY DIMENSIONS

Tending, and tangibles. A total of five consolidated dimensions of service quality are:
Tangibles (ques.1 to 4) - Physical facilities, equipment’s 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 for 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.
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.

46
 CHAPTER:-

FINDINGS ,SUGGESTIOM

AND

CONCLUSION

47
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.
• The 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 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 the visual appeal of HDFC are 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 the
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
when the services will be performed. Employees at banks give their customers first

48
 preference and are always ready to help them. Overall HDFC banks responsiveness
dimension of service quality is the highest.
• According to the customer perception, HDFC bank is highly responsive. Customers
are assured while transacting with the bank. The reliability dimension is lower than
the first dimension. They feel that the bank is unable to give them individual
attention and its equipment is not modern and sufficient for the bank.
• There is not much gap between all the dimensions, this shows that HDFC BANK
is a better service provider in all the dimensions i.e., reliability, assurance,
tangibility, responsiveness and empathy. As a result of which, the customers are
satisfied with the service offered by HDFC bank.

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 to 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.

49
 • 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 up-to-date technologically are important factors. Modern
equipment’s, new improved technology should be replaced with the old ones. If the
staff inside is pleasant and well-informed, in an aesthetically pleasing environment,
then customer satisfaction will be high.

• Thus, the banking industries must continuously measure and improve these
dimensions in order to gain customers‟ loyalty.

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 equipment, and neatly dressed 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

50
of services or subsequent response of the bank employees. These limitations are too serious
to be avoided as this 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 includes

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

51
ANNEXURE:-

52
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)

• Zeithaml V. A., Gremler D.D., Bitner M.j., and Pandit A.: Service Marketing
Integrated Customer Focus across the Firm” (4th Edition)

Websites

• www.hdfcbank.com

• www.wikipedia.org

QUESTIONNAIRE

Respected Sir/Madam

I am a student of Govt. Degree College, Udhampur, conducting a survey on “perception of

customers regarding 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 √ the option which in your
opinion is believed to be true.

Name:
Age:
Educational Qualifications

53
QUESTIONS Strongly Disagree Neither Agree Strongly
Disagree agree Agree
nor
disagree
1.HDFC bank has modern
looking equipment.
2. The bank's physical features
are visually 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
your 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 request.
13. The behavior of employees
in the bank instills confidence
in you.
14. You feel safe in your
transactions with the bank.
15. Employees in the bank have
the knowledge to answer your
questions.
16. The bank gives you
individual attention.

54
17. The bank has operating
hours convenient to all its
customers
18. The bank has your best
interests at heart.
19. The employees of the bank
understand your specific needs.

55