SUMMER TRAINING PRESENTATION

On
Study Of Retail Banking Services Of
Hdfc Bank With Reference To Customer
Satisfaction
At

Presented By:
 Anamika Badyal (08)
 Pallavi Suri (38)
 111-MBA-15
THE BUSINESS SCHOOL UNIVERSITY OF JAMMU
10/18/2019 1
HISTORY OF BANKING
 First European banknotes, which was handwritten
appeared in 1661, in Sweden

 Cheque and printed paper money appeared in the

1700’s and 1800’s

 The word bank comes from the Italian word “ban

co”, meaning bench, because moneylenders worked
on benches in market places.

 New technology transformed the banking industry in

the 1900’s round the world, banks merged into larger
and fewer groups and expanded into other country.

2
 BANKING STRUCTURE IN
INDIA:

State co-op Banks

Schedule Banks Foreign

Private Sector
Commercial Banks
Banks
Reserve Bank of India
Indian
Central co-op
Banks and Primary Public Sector Banks
Cr. Societies
Non-Schedule
Banks
Commercial Banks

3
Major Players In India:-
 HDFC BANK LTD.
 ICICI BANK LTD.
 STATE BANK OF INDIA LTD.
 PUNJAB NATOINAL BANK LTD.
 BANK OF BARODA LTD.
 FEDERAL BANK LTD.
 AXIS BANK LTD.
 ING VYSYA BANK LTD.
 IDBI BANK LTD.
 INDUSIND BANK LTD.
 YES BANK LTD.

4
HISTORY OF HDFC BANK
 HDFC Bank commenced operations as a
Scheduled Commercial Bank in January 1995

 Hasmukhbhai Parekh, Founder and Chairman-

Emeritus, of HDFC Group

 HDFC BANK LTD. was amongst the first to

set up a bank in the private sector.

 In a milestone transaction in the Indian banking

industry, Times Bank was merged with HDFC
Bank Ltd., effective February 26, 2000

5
Introduction to hdfc bank

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.

6
HDFC Bank comprises of 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 four

core values - Customer Focus, Operational Excellence,
Product Leadership and People. They believe that the
ultimate identity and success of their bank will reside in
the exceptional quality of people and their extraordinary
efforts.

They are committed to hiring, developing, motivating and

retaining the best people in the industry.

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

1. Operational excellence.

2. Customer Focus.

3. Product leadership.

4. People.

The objective of the HDFC Bank is to provide its target market customers
a full range of financial products and banking services, giving the customer
a one-step window for all his/her requirements.

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 MISSION
•World Class Indian Bank

•Benchmarking against international standards.

•To build sound customer franchises across distinct

businesses

•Bestpractices in terms of product offerings,

technology, service levels, risk management and audit
& compliance
9
 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.

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 HDFC Bank Focuses on…
 Understanding the needs of customers and offering
them superior product and service.

 Leveraging technology to service customers quickly

and conveniently.

 To create quality of consumers and not quantity of

Consumers.

 Providing and enabling environment to foster growth

and learning for the employees.

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DISTRIBUTION NETWORK

 HDFC Bank is headquartered in Mumbai

 4,541 branches spread over 2,464 cities across India

 Customers in over 120 locations are also serviced

through Telephone Banking

 Over 12,013 networked ATMs across these cities

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

 TRUST: The bank appreciates the trust placed

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

 INNOVATION: Recognizing the different needs

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

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THE THREE MAJOR FUNCTIONS OF
HDFC BANK:-

HDFC Bank deals with three key business

segments:-

 Retail Banking Services

 Wholesale Banking Services
 Treasury Operations

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15
 PRODUCT DETAILS
 Accounts and Deposits:

1.) Savings Accounts-

a. Regular saving account: An easy-to-operate savings
account that allows you to issue cheques, draw Demand
Drafts and withdraw cash.

b. Saving plus Account: All you have to do is maintain an

Average Quarterly Balance of Rs. 10,000/-

c. Saving Max Account: By maintaining an average quarterly

balance of just Rs. 25,000/- you get a host of premium
services from HDFC Bank absolutely free.

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d. Senior Citizen Account: presenting an
account especially dedicated to customer,
which like a dutiful child will help you fulfill
your needs in the best manner possible.

e. No frills Account: In this customer can put

Zero Initial Pay-in and a Zero Balance
account and avail services like Net Banking,
Mobile banking free of cost.

f. Institutional saving accounts: offering twin

benefits of a savings as well as a current
account. All this and more in a Zero Balance
account.
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g. Kid’s advantage account: Open a Savings Account and
transfer money every month into customer’s Kids
Advantage Account and watch the savings grow as
customer’s child grows.

h. Salary Accounts:
 Pay roll account.
 Classic salary account.
 Regular salary account.
 Premium salary account.
 Defense salary account.
 No frills salary account.
 Reimbursement salary account.

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2.) Current Accounts-
a. Plus current account:
 HDFC Bank plus Current Account gives the power of
inter-city banking with a single account and access to
more than cities.
 Plus Current Account requires maintaining an average
quarterly balance of Rs. 100,000.

b. Trade current account: Free inter-city clearing of up to 50

lakhs per month, maintaining an average quarterly
balance of Rs. 40,000.

c. Premium current account: inter-city banking account

that requires an average quarterly balance of only Rs.
25,000, offers Payable-At-Par cheque book facility & FREE
inter-city clearing transactions across our network up to
Rs.25 Lacs per month.

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

e. Regular current account: A Current account is ideal

for carrying out day-to-day business transactions, it
requires to maintain an average quarterly balance of
only Rs. 10,000.

f. RFC – Domestic Account: Resident foreign currency

account. To manage foreign currency efficiently.
Person can choose to set up your account either in
US Dollar, Great Britain Pound or Euro.

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g. Flexi current account: With HDFC Bank Flexi Current
Account Cash Deposit and Anywhere Transaction
limits are a multiple of the balance you maintain in
Current Account, maintaining a minimum Average
Monthly Balance (AMB) of just Rs. 75,000.

h. Apex current account: On maintaining an average

quarterly balance of Rs. 10 lakhs, Unlimited, free,
anywhere Banking experience at the APEX is
reserved for person who joints this.

i. Max current account: With a Rs. 5 lakhs average

quarterly balance requirement, bank present to world
of privileges that helps business expand and grow.
Includes Features like maximum free transaction
limits.

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3.) Fix Deposits Service: If people believe in long-term
investments and wish to earn higher interests on his/her
savings, now is the time to invest money in HDFC bank Fixed
Deposit.
Get up to 9.75% on HDFC Bank Fixed Deposit with an
additional 0.50% for Senior Citizens.

a. Regular fix deposit: deposit money in to a fix deposit in

the bank and get the benefits of these facilities.

b. Five year tax saving fix deposit: fixed deposits booked by

an Individual/HUF for 5 years & up to Rs. 1,00,000/- will be
allowed exemption under Sec 80C of the Income Tax
Act,1961.

c. Super saver facility: Avail of an overdraft facility of up to

75% of the value of his or her Fixed Deposit.

d. Sweep-in facility: Link Fixed Deposit to Savings or Current

Account and use it to fall back on in case of emergencies.
22
4.) DEMAT ACCOUNT SERVICE: Nowadays share market
is becoming is the main occupation of the person. So to
avoid faulty processes demat account is really most
important for the share market and for the safety of shares it
is most important.

 HDFC BANK is one of the leading Depository Participant

(DP) in the country with over 8 Lac demat accounts.

 HDFC Bank Demat services offers a secure and convenient

way to keep track of securities and investments, over a
period of time, without the hassle of handling physical
documents that get mutilated or lost in transit.

 HDFC BANK is Depository participant both with -National

Securities Depositories Limited (NSDL) and Central
Depository Services Limited (CDSL).

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5.) SAFE DEPOSIT LOCKER:
 Eligibility:- An individual (not minor), firms, limited
company, associations, clubs, trusts, societies, etc may
hire a locker.

 Advantages of safe deposit locker in HDFC bank:-

 Wide Availability.
 Lockers available in various sizes. i.e. Small, Medium,
Large and Extra Large with varying rents.
 Lockers are rented out for a minimum period of one
year. Rent is payable in advance.
 No deposits are required to avail a locker. Just open
an account and get the locker facility.
 There is a nominal annual charge, which depends on
the size of the locker and the centre in which the
branch is located.

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 Loans:
 Personal loans -
 Auto loans
 Home loans
 Gold loans
 Educational loans
 Commercial vehicle finance
 Vehicle working capital finance
 Loans against rental receivables

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FOREX AND TRADE SERVICE
If people need to deal in foreign currency and keep tabs on
exchange rates every now and then, transfer monies to India,
make payments etc., HDFC Bank has a range of products and
services that people can choose from to transact smoothly,
efficiently and in a timely manner.

The following are different methods of transacting in Foreign

Exchange and remitting money.
 Travelers Cheques.
 Foreign Currency Cash.
 Foreign Currency Drafts.
 Cheque Deposits.
 Remittances.
 Cash to Master.
 Trade Services.
 Forex Services Branch Locator.
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PAYMENT SERVICES-
DIGITIZATION
 Verified By Visa: Now you can shop securely online with your
existing Visa Debit/Credit card.

 Net Safe: Now shop online without revealing your HDFC Bank
Credit Card number.

 Merchant Services: Experience hassle free payment acceptance.

 Prepaid Mobile Refill: Recharge your Prepaid Mobile Phone with

this service.

 Bill Pay: Pay your telephone, electricity and mobile phone bills at
your convenience.

 Visa Bill Pay: Pay using your HDFC Bank Visa credit card and forget
long queue and late payments forever
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 Pay Now: Use your HDFC Bank Credit Card to pay your utility bills online,
make subscriptions and donations; no registration required.

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

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

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

 e-Monies National Electronic Funds Transfer : Transfer funds from your

account to other Bank accounts across India - FREE of cost.

 Online Payment of Excise & Service Tax : Make your Excise and Service Tax
payments at your own convenience through HDFC Bank's Net Banking
facility.

 Religious Offerings : Now donate to your favorite temple easily and

securely using HDFC BANK's Net Banking.

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10/18/2019 29
HDFC Bank Apps:
 SMARTBUY: It is the first of its kind website offering a one-stop-
shop for online deals, bill payments, travel booking and much more.
Customers get to explore the expanse of categories across
electronics, dinings, sports, books and much more.

 PAYZAPP: It is a payment app solution for HDFC bank customers.

It allows instant payments, access to great deals all in one place,
instant money transfer and much more…just with a single click on
your registered mobile device. Limit for payzapp transfers- day
limit- Rs. 5000/- and Monthly limit-Rs 10000/-.

 SMARTPAY: SmartPay is the smartest way to pay your utility bills

using your Credit Card. Get 5% CashBack* for the first 6 months
of registration. No transaction processing fee.

 CHILLR: Chillr is a revolutionary new app that lets you send money
immediately to anyone in your phone book, 24 hours a day, 7 days a
week. No more hassles of adding beneficiaries! As an HDFC Bank
customer, you can also transfer money to your contacts having
other bank accounts.
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 Cards:
 Credit cards-
 Silver credit card - Gold credit card
 Woman’s gold credit card - Platinum plus credit card
 Corporate credit card - Business credit card
 Titanium credit card - Value plus credit card
 Health plus credit card - Visa signature credit card

 Debit Cards-
 Easy shop International Debit Card
 Easy shop Gold Debit Card
 Easy shop International Business Debit Card
 Easy shop Woman’s Advantage Debit Card

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

NRI-Banking facilitates the NRI customer to open the following

account types:-
 NRE (Non Resident External Accounts): It can be in the form of
Savings, Current or fixed deposits in Indian rupees. The funds in this
account are fully repatriable.

 NRO (Non Resident Ordinary Accounts): It can be in the form of

Savings, Current or Fixed Deposits in Indian Rupees. The funds in
this account are not repatriable (only interest accrued is
repatriable).

 FCNR (Foreign Currency Non Resident Accounts): It can be in the

form of fixed Deposits only, in the five major currencies, namely US
Dollars, GBP, DM, Euro, and Japanese Yen. The funds in this account
are fully repatriable.
35
On job training
 We have done operational work during training.

 Anamika Badyal: connected 6 members by opening their

respective account in the HDFC bank, and 3 members
to avail credit card services of the bank.

 Pallavi Suri: connected 11 members by opening their

respective account in the HDFC bank, 4 members to
avail credit card services of the bank and 3 members
with loan services (personal and auto)

 We have evaluated the satisfactory level of services to

customers of bank by telephonic interviews .

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CUSTOMER SATISFACTION
 “SATISFACTION is a person’s feelings of pleasure or
disappointment resulting from comparing product’s perceived
performance(or outcome) in relation to his or her expectations”.

 As this definition makes clear, Satisfaction is a function of perceived

performance & expectations. If the performance falls short of
expectation, the customer is dissatisfied. If the performance
matches the expectation, the customer is highly satisfied or
delighted.

 Many companies are aiming for high satisfaction because customers

who are just satisfied still find it easy to switch when a better offer
comes along. Those who are highly satisfied are much less ready to
switch. High satisfaction or delight creates an emotional bond with
the brand, not just a rational preference.
37
 OBJECTIVES OF STUDY
The objective of the study is as follows:

 To examine the essential dimensions of service quality i.e.

RATER- Reliability, assurance, tangibles, empathy and
responsiveness of HDFC bank and its effect on customer’s
satisfaction.
 To find out the level of perception of the customers from the
service quality offered by the banks.
 To know which service quality dimension of the bank is
performing well.
 To identify which dimension of service quality needs
improvement so that the quality of service of HDFC banks is
enhanced.

38
 IMPORTANCE 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

consumer demands 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.

39
SCOPE OF STUDY
 The scope of this research is to identify the service
quality of HDFC bank with reference too customer
satisfaction.

 This research is based on primary data and secondary

data. This study only focuses on the dimensions of
customer satisfaction.

 It aims to understand the skill of the company in the

area of service quality that are performing well and
shows those areas which require improvement.

 The study was done taking two branches of HDFC bank

into consideration.

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RESEARCH METHODOLOGY
DATA SOURCE
 Primary Data:
Questionnaires were prepared and customers of the banks at branch were
approached to fill up the questionnaires. The questionnaire contains 23
questions which reflect on the type and quality of services provided by the
banks to the customers. The response of the customer is recorded on a grade
scale of strongly disagree, disagree, uncertain, agree and strongly agree for
each question. The filled up information was later analyzed to obtain the
required interpretation and the findings.
 Secondary Data:
In order to have a proper understanding of the service quality of bank a depth
study was done by taking information from staff at the bank. 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.

41
RESEARCH DESIGN
 The research design is exploratory till identification of service
quality parameters.

 Later it becomes descriptive when it comes to evaluating customer

perception of service quality of the banks.

 Descriptive research, also known as statistical research,

describes data and characteristics about the population or
phenomenon being studied. Descriptive research answers the
questions who, what, where, when and how.

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RESEARCH SAMPLE

 SAMPLING PLAN:
Sampling Units: Customers of HDFC bank
Sample Technique: Random Sampling.
Research Instrument: Structured Questionnaire.
Contact Method: Personal Interview.

 SAMPLE SIZE:
The work is a case of HDFC Bank, one of the
largest bank of Indian banking industry together
representing over 25 per cent of the market share
of Indian banking space. The survey was conducted
in the two branches of HDFC Bank, with 140
customers as respondents.
43
 LIMITATIONS
 The study is only for the HDFC Bank confined to a
particular location. Hence the findings cannot be treated as
representative of the entire banking industry.
 The study can also not be generalized for public and private
sector banks of the country.
 Respondents may give biased answers for the required data.
Some of the respondents did not like to respond.
 Respondents tried to escape some statements by simply
answering “neither agree nor disagree” to most of the
statements. This was one of the most important limitation
faced, as it was difficult to analyze and come at a right
conclusion.
 In our study we have included 140 customers of bank
because of time limit and convenience of the customers.

44
 DATA ANALYSIS
Question . Age

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

18.5% respondent’s age are 18 to 23 years.

42.9% respondent’s age are 24 to 29 years.
15% respondent’s age are 30 to 35 years.
45
23.6% respondent’s age are 35 to above years.
Question . Educational qualifications

INTERPRETATION

From the above table it can be seen that.

13.7% respondents are Undergraduate.

57.8% respondents are Graduate.
28.5% respondents are Post graduate. 46
TANGIBILITY DIMENSION OF SERVICE QUALITY (Questions1 to 4): Physical
facilities, equipment and appearance of personnel

Ques.1 HDFC bank has modern looking equipment.

INTERPRETATION
HDFC bank has modern-looking and hi-tech equipment. Here analysis show that
most of the respondents agreed with this statement. Among the total respondents
only 2.9% disagreed, 17.9% were neutral and 41.4% agreed. After analysis it is found
that majority of the respondents think that HDFC Bank do have modern looking
equipment or hi-tech equipment. 47
Ques.2 The bank's physical features are visually appealing.

INTERPRETATION
HDFC bank’s physical facilities are visually appealing. From this statement I found that
41.4% persons agreed. 17.1% persons were uncertain and 7.9% persons disagreed.
Out of the total respondents only 2.9% strongly disagreed with the statement.
48
Ques.3 Materials associated with the service (such as pamphlets or statements) are
visually appealing at the bank.

INTERPRETATION
Materials associated with the service are visually appealing at HDFC bank. Here 55
respondents agreed with this statement and 46 strongly agreed with this statement.
22 were neutral that is most and 12 disagreed. Only 5 respondents strongly disagreed.
Hence, in general it can be concluded that materials associated with the services such
as pamphlets or statements are visually appealing. 49
Ques.4 The bank's reception desk employees are neat appearing.

INTERPRETATION
HDFC bank’s employees appear neat. Here analysis shows that majority were neutral.
Among the total respondent 24 respondents were neutral, 58 people agreed and 44
respondents strongly agreed. The rest disagreed. From analysis It is found that some
respondents disagreed with this statement but most of the respondents think the
employees of the HDFC bank appear neat. 50
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.

INTERPRETATION
Here analysis shows that among the total respondents 9 respondents disagreed and
63 respondents agreed with this question. Also It is found that 24 people were neutral
and 5 people strongly disagreed. Hence it can be concluded that majority of them
agreed that the bank when promises to do something by certain time, it does so. 51
 Ques. 6 When you have a problem, the bank shows a sincere interest in
solving it.

INTERPRETATION
When you have a problem, HDFC bank shows sincere interest in solving it. After
analyzing this statement It is found that most of the respondents agreed i.e. 35%
respondents agreed. Also I found that 20.7% were neutral with this statement and 5.7%
were committed with disagree. There were only 2.1% who strongly disagreed. Hence 52
Ques.7 The bank performs the service right the first time.

INTERPRETATION
Here analysis shows that among the total respondents 60 people agreed with this
statement. They think that HDFC bank performs the services right the first time. 40
people strongly agreed with this statement. Also 26 people were neutral and the rest
of the respondents disagreed and strongly disagreed. 53
Ques.8 The bank insists on error free records.

INTERPRETATION
Bank insists on error free records. HDFC bank has proved from my analysis that it
surely insist on error free records as 36.4% respondents agreed with this statement
and 32.1% strongly agreed. Only 7.1% respondents disagreed and 2.1% strongly
disagreed. 54
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.

INTERPRETATION
Employees in the bank tell you exactly when the services will be performed. Majority
of the respondents agreed with this statement. 21.4% respondents were uncertain. At
55
the same time 3.6% disagreed and 2.1% Strongly disagreed with this statement.
Ques. 10 Employees in the bank give you prompt service.

INTERPRETATION
Most of the respondents agreed with this statement. According to the analysis,
employees in HDFC Bank give prompt service. Among the total respondents agreed
respondents were 53 and 52 strongly agreed were 23 people were neutral and 9
disagreed. There were only 3 respondents who strongly disagreed with this 56
Ques.11 Employees in the bank are always willing to help you

INTERPRETATION
Employees in HDFC bank are willing to help you. With this statement only 3
disagreed and 11 strongly disagreed. Strongly agreed were 63 people i.e. 45%
respondents.
57
 Ques.12 Employees in the bank are never too busy to respond to your
request.

INTERPRETATION
Employees in HDFC Bank ltd are never too busy to respond to your request. After
analyzing this statement It is found that most of the respondents agreed with this
statement. Among the total respondents 30.7% strongly agreed and 39.3% agreed. 25
respondents were neutral and 16respondent disagreed. Only one strongly disagreed.58
ASSURANCE DIMENSION OF SERVICE QUALITY (Question13 to 16):
Knowledge and courtesy of employees and their ability to inspire trust and
confidence
Ques.13. The employees of the bank are trustworthy.

INTERPRETATION
The employees of the bank are trustworthy. According to my findings, 33.6%
respondents agreed that employees at HDFC bank are trustworthy. 24.3%
respondents were neutral and 7.1% respondents disagreed with this statement. 59
Ques.14 The behavior of employees in the bank instills confidence in
you.

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 7 respondents
disagreed, 55 agreed and 46 strongly agreed. There were only 2 respondents who
strongly disagreed.This means 5% respondent disagreed with this statement.
60
Ques.15 You feel safe in your transactions with the bank.

INTERPRETATION
With this statement most of the respondents agreed. Among the total respondents 60
agreed with this statement and 42 strongly agreed. 19.3% respondents were neutral
and 5.7% respondents disagreed.
61
Ques.16 Employees in the bank have the knowledge to answer your
questions.

INTERPRETATION
From the analysis It is found that 54% respondents agreed that employees of HDFC
bank have complete knowledge to answer their questions. 26% respondents strongly
agreed to this statement and only 4% disagreed. 18% neither agreed nor disagreed.
62
EMPATHY DIMENSION OF SERVICE QUALITY (Question17 to 20): Caring and
individualized attention that firm provides to its customers.
Ques.17 The bank gives you individual attention.

INTERPRETATION
HDFC bank is not able to give individual attention to its customers as out of the total
respondents 3.6% disagreed with this statement. 15.8% of the respondents were
neutral and 46.8% agreed and 31.7% strongly agreed. From this finding it can be
63
concluded that it does give individual attention to its customers.
Ques.18 The bank has operating hours convenient to all its
customers.

INTERPRETATION
HDFC bank has operating hours convenient to all its customers. Out of all
respondents, 61 respondents agreed with this statement and only 3 respondents
disagreed. Also 46 respondents strongly agreed that the bank has operating hours
convenient to its customers. 64
Ques.19 The bank has your interests best at heart.

INTERPRETATION
HDFC bank has your best interests at heart. Here analysis shows that 65
respondents agreed and 42 respondents strongly agreed with this statement. 18.1%
were neutral and the rest disagreed and strongly disagreed.
65
Ques.20 The employees of the bank understand your specific needs.

INTERPREATION
Employees of HDFC bank understand specific needs. With this statement most of
the respondents were neutral. Among the total respondents 58 respondents agreed
and 51 respondents strongly agreed. 5 respondents disagreed with this statement. 66
Ques. 21-23: To judge the digitalization feasibility of the bank.

Ques.21 NET BANKING facility by the bank is easily accessible.

INTERPREATION
Employees of HDFC bank understand specific needs. With this statement most of the
respondents agreed. Among the total respondents 42 respondents strongly agreed
and 2 respondents strongly disagreed. 2 respondents disagreed with this statement.67
Ques.22 It is convenient to use bank’s apps to make transactions.

INTERPREATION
Employees of HDFC bank understand specific needs. With this statement most of
the respondents were neutral. Among the total respondents 53 respondents agreed
and 59 respondents strongly agreed. 7 respondents disagreed with this statement. 68
 Ques.23 You would prefer to use net banking to make
transactions.

INTERPREATION
Employees of HDFC bank understand specific needs. With this statement most of the
respondents were neutral. Among the total respondents 62 respondents agreed and
54 respondents strongly agreed. 8 respondents disagreed with this statement. 69
The scores for each dimension are summed up and a final score is
obtained:

SERVICE QUALITY DIMENSION Points

16
1.TANGIBILITY (1 TO 4)

17
2. RELIABILITY (5 TO 8)

16
3. RESPONSIVENESS (9 TO 12)

17
4.ASSURANCE (13 TO 16)

16
5. EMPATHY (17 TO 20)

70
 FINDINGS
 The Reliability dimension of service quality is better as compared to
empathy and tangibility. For most services, customer’s perceptions of
whether the service has been performed correctly, and not provider-
established criteria, are the major determinants of reliability. Whenever
they have a problem, the bank shows sincere interest in solving.

 As score for Assurance is at second place after reliability, so the

customers of HDFC bank are very confident and feel safe while transacting
with the bank. Moreover the employees of the bank have proved to be
trustworthy. Employees are also educated enough to answer all the
questions.

 The score of Tangibility dimension of service quality of HDFC bank is

also rated well. The service quality factor tangible is defined by whether
the physical facilities and materials associated with the service are visually
appealing at the bank. These are all factors that customers notice before or
upon entering the bank. Customer expectations regarding visual appealing
of HDFC is very high. From my study It is found that Physical facilities and
modern looking equipment are quite sufficient in HDFC bank.

71
 According to the findings, the score of Empathy is also
satisfactory. HDFC bank gives individual attention to its customers
and understands specific needs of its customers.

 In HDFC bank, the score of Responsiveness is well rated too 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 bank give their customers first preference
and are always ready to help them.

 According to the customer perception, HDFC bank is highly

reliable. Customers are assured while transacting with the bank.
They feel that the bank is able to give them individual attention and
its equipment are 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.

72
 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
satisfaction appear to be cleanliness, up to date technology
modern equipment’s, and neatly dressed up employees. The
Tangibility dimension of service quality of HDFC bank is
satisfactory too. Customers of the bank seem to be satisfied
with the empathy dimension. To satisfy these customers, the
management can take some attempts to always keep improving.

73
 The study brings about the areas which require urgent attention of the
employees, the management, and the policy makers of the industry. These
are areas in which customers are hugely dissatisfied with the services of
the banks against their expectation. This high degree of dissatisfaction
resulting from the services received clearly questions the design of
services or subsequent response of the bank employees.

 The management should understand the benefits of service quality. It

include increased customer satisfaction, improved customer retention,
positive word of mouth, reduced staff turnover, decreased operating
costs, enlarged market share, increased profitability, and improved
financial performance.

 In the days of intense competition, superior service is the only

differentiator left before the banks to attract, retain and partner with the
customers. Superior service quality enables a firm to differentiate itself
from its competition, gain a sustainable competitive advantage, and
enhance efficiency. Thus, improving service quality leads to the customer
satisfaction and, ultimately, to customer loyalty.
74
 RECOMMENDATIONS

 Reliability is an obvious place to start. Customers of the bank want to know

their resources are safe and within trustworthy institutions. A way to ensure this
peace of mind would be to take steps to ensure bank employees are well trained,
so each bank associate is able to offer complete and comprehensive information
at all times. Consistent policies combined with a knowledgeable staff will foster a
high degree of institutional cohesion and reliability.

 Responsiveness, again when associated with a well-trained staff and timely

answers to service-related questions, would make significant inroads into causing
HDFC bank be regarded as responsive. Staff should be encouraged to present
relevant options to banking customers in a manner that does not resemble
salesmanship so much as a desire to serve.

 Intangibles please customers just as much as tangibles in the banking industry.

People tend to visit the same branch of a bank over and over again. Usually, this is
a location close to their home or their workplace. It is natural that customers
become comfortable and habituated to these branch banks, for the same reason
they develop familiarity with a neighborhood supermarket or convenience store.

75
 Learning to understand customers’ needs will allow bank associates to
offer enhanced services, perhaps lowering customers’ banking costs and
increasing their investment potential. This could also open up the
possibility of increased profits for banks, for when perceived as more
service and customer oriented, they will, in effect, become a useful and
pleasant way to “shop.”

 Keeping the bank with up-to-date technologically are important factors.

Modern equipment, 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.

 The five-dimensional structure could possibly serve as a meaningful

framework for tracking a bank’s service quality performance over time
and comparing it against the performance of competitors. Items on some
dimensions should be expanded if that is necessary for reliability.

 Thus, the banking industries must continuously measure and improve

these dimensions in order to gain customers’ loyalty.

76
SWOT ALALYSIS
STRENGTHS

 It has a highly automated environment in terms of information

technology & communication system.
 The bank has a near competitive edge in area of operations.
 Infrastructure is best.
 It has many innovative products like kids Advantage scheme, Demat,
NRI services
 Right strategy for the right products.
 Great Brand Image
 Products have required accreditations.
 High degree of customer satisfaction.
 Good place to work
 Lower response time with efficient and effective service.
 Dedicated workforce aiming at making a long-term career in the field.

77
WEAKNESS
 Account opening and delivery of cheque book take comparatively more time.
 Lack of availability of different credit products like CC Limit, Bill discounting
facilities.
 Some gaps in range for certain sectors.
 Customer service- staff needs training.
 Sectorial growth is constrained by low unemployment levels and
competition for staff

OPPORTUNITY
 Branch expansion
 Door step services
 Greater liberalization in foreign ownership via FDI in Indian Pvt. Sector Banks.
 Profit margins will be good.
 Could extend to overseas broadly.
 New specialist applications.
 Could seek better customer deals.
 Fast-track career development opportunities on an industry-wide basis.

78
THREATS
 The bank has started facing competition from players
like SBI, ICICI Bank in the finance market itself. This
reduce the profit margins in the future.
 Some Pvt. Banks have 7 days banking.
 Very high competition prevailing in the industry.
 Vulnerable to reactive
 ASttack by major competitors
 Lack of infrastructure in rural areas could constrain
investment.
 High volume/low cost market is intensely competitive.

79
COMPETITION ANALYSIS

80
 Table showing the Growth in Deposits (`In crores)

Particular MARCH’16

HDFC 546,424.19

ICICI 421,425.71

KOTAK 138,643.02

AXIS 322,441.94

INDUSIND 93,000.01

Source: Annual reports of the banks for the period MARCH’16

81
 SALES TURNOVER
Table showing the Sales turnover (`In crores)

Particular MARCH’16
HDFC 16,516.02
ICICI 13,330.25
KOTAK 4,386.85
AXIS 11,113.90
INDUSIND 3,291.60

Source: Annual reports of the banks for the period MARCH’16

82
 BORROWINGS
Table showing the Borrowings (`in crores)

Particular MARCH’16
HDFC 53,018.47
ICICI 174,807.38
KOTAK 20,975.34
AXIS 79,758.27
INDUSIND 22,155.86

Source: Annual reports of the banks for the period MARCH’16

83
GROWTH IN ATM MACHINES
Table showing the Growth in ATM Machines (No. of machines)

Particular MARCH’16
HDFC 12013
ICICI 14103
KOTAK 1159
AXIS 12922
INDUSIND 1500

Source: Annual reports of the banks for the period MARCH’16

84
NUMBER OF BRANCHES
Table showing the Number of Branches

Particular MARCH’16
HDFC 4541
ICICI 4,450
KOTAK 641
AXIS 3062
INDUSIND 800

Source: Annual reports of the banks for the period MARCH’16

85
 NUMBER OF EMPLOYEES
Table showing the number of employees

Particular MARCH’16
HDFC 76286
ICICI 56969
KOTAK 29200
AXIS 42420
INDUSIND 8054

Source: Annual reports of the banks for the period MARCH’16

86
EARNINGS PER SHARE
Table showing the Earnings per Share

Particular MARCH’16
HDFC 48.64
ICICI 16.73
KOTAK 11.39
AXIS 31.04
INDUSIND 38.40

Source: Annual reports of the banks for the period MARCH’16.

87
 BIBLIOGRAPHY
BOOKS REFFERED:

 Kotler Philip, marketing management, (Pearson education, 12th edition)

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

WEBSITES REFFERED:

 www.hdfcbank.com
 www.hdfcindia.com
 www.wikipedia.org
 www.google.co.in

REPORTS/ARTICLES REFFERED:
 Annual reports of HDFC BANK
 Performance Comparison of Private Sector Banks with the Public Sector Banks in
India, International Journal of Emerging Research in Management &Technology ISSN:
2278-9359 (Volume-3, Issue-2) 88
89