PROJECT REPORT

ON
PRODUCT & SEVICES OF HDFC BANK

SUBMITTEED BY:
Anmol Saxena
B.COM(H)

Submitted to :-

PROF. VANDANA MISHRA

ACKNOWLEDGEMENT:I would like to thank all those who have helped me in

making this project directly as well as indirectly .To start
with I would like to thank Dr.Vandana Mishra who provided
me the opportunity to work on this project her guidance and
suggestions made me possible to make this project complete.

ANMOL SAXENA
B.COM (Hons)

Anmolsaxena11021995@gmail.com
Admission number :- 13gsfc101001
Enrollment number:-1306102013

CONTENTS:1. Executive Summary

2. Introduction of Banking

3. Reason for selection of this topic

4. Importance of company
5. Learning from study
6. Company profile
7. Mission statements of HDFC bank
8. Vision statements of HDFC bank
9. Business strategy
10. Product scope
11. Product and services at glance
12. Distribution
13. Promoter
14. Management
15. Technology
16. Quality policy
17. Objectives, roles and limitations of study
18. Findings
19. Conclusions
20. Recommendations
21. References and Bibliography

SUMMARY

The Indian economy is highly influenced by rural economy, therefore the role of Regional Rural
Banks (RRBs) in the Rural Banks in India are integral part of the rural credit structure of the
country. Since the very beginning, when the RRBs were established in 2nd Oct 1975, these banks
played a pivotal role in the economic development of Rural India.
The main goal of establishing regional rural banks in India was to provide credit to the rural
people who are not economically strong enough especially the small and marginal farmers,
artisans, agricultural labors, and even small entrepreneurs.
The history of Regional Rural Banks in India dates back to the year 1975. Regional Rural Banks
were established under the provisions of an ordinance promulgated under the provisions of an
ordinance promulgated on the 26th sept 1975 and the RRB act, 1975 with an objective to ensure
sufficient institutional credit for agriculture and other rural/semi urban areas and grant loans and
advances mostly to the small and marginal farmers. For the purpose of classification of bank
branches, The Reserve Bank of India defines rural areas as a place with a population of less than
10,000. The RRBs are jointly owned by Government and Sponsor Banks; the issue capital of a
RRB is shared by the owners in the proportion of Government and 50%, 15% and 35%
respectively.

DECLARATION
I hereby declare that this project is the original piece of research
work carried out by me under the guidance of Pro. Vandana Mishra

pg GALGOTIAS UNIVERSITY .The information has been

collected from the genuine source by me.

INTRODUCTION OF BANKING
The customer has come to realize somewhat belatedly that he is the king. The customers choice
of one entity over another as his principal bank is determined by considerations of service quality
rather than any other factor. He wants competitive loan rates but at the same time also wants his
loan or credit card application processed in double quick time. He insists that he be promptly
informed of changes in deposit rates and service charges and he bristles with customary rage if
his bank is slow to redress any grievance he may have. He cherishes the convenience of
impersonal net banking but during his occasional visits to the branch he also wants the comfort
of personalized human interactions and facilities that make his banking experience pleasurable.
In short he wants financial house that will more than just clear his cheques and updates his
passbook: he wants a bank that cares and provides great services.
So does HDFC bank meet these heightened expectations? What are the customers perceptions
of service quality of the banks? Which dimension of service quality of HDFC bank is performing
well? To find out answers to these questions I undertook a survey of 2 branches of HDFC bank.
A lot of surveys have been done in the past to understand the aspect of customer satisfaction and
to find out SERVICE QUALITY OF HDFC BANK.
HDFC Bank Limited
TYPE: public company
INDUSTRY: banking, financial services
FOUNDED: august 1994
HEADQUARTERS: Mumbai, Maharashtra, India
AREA SPREAD: worldwide
KEY PEOPLE: Aditya puri (MD)PRODUCTS: investment banking, investment management,
wealth management, private Management, corporate banking, private equity, finance and
insurance, consumer banking, mortgages, credit cards .HDFC bank limited is an Indian Banking
and Financial Services company headquartered in Mumbai, Maharashtra incorporated in 1994, is
the 5th largest bank in India as measured by assets.

PROFILE OF THE COMPANY

HDFC is one of Indias leading long-term life insurance company that offers a range of
individual and group insurance solutions that meet various customer needs such as Protection,
Pension, Savings and Investment and Health, along with Children and Womens plan. HDFC life
is joint venture between Housing Development Finance Corporation Limited (HDFC), Indias
leading house finance institution and standard life plc, the leading provider of financial services
in the United Kingdom HDFC Ltd. Holds 70.64% and standard Life (Mauritius Holding) Ltd.
Holds 26.00% of equity in the joint venture, while the rest is held by others. HDFC Lifes
product portfolio comprises solutions, which meet various customer needs such as Protection,
Pension, Savings, Investment and Health. Customers have the added advantage of customizing
the life insurance plans, by adding optional benefits called riders, at a nominal price. The
company currently has 26 retail and 7 group products in its portfolio, along with 9 optional rider
benefits catering to the savings, investment, protection and retirement needs of customers .The
objective is to build sound customers 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 banks risk appetite. The bank is
committed to maintain the highest level of ethical standards, professional integrity, corporate
governance and regulatory compliance. HDFC Banks business philosophy is based on 4 core
values which are as follows:1.
2.
3.
4.

Operational Excellence
Customer Focus
Product Leadership
People

MISSION OF 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 and compliance

VISION OF BANK:The HDFC bank is committed to maintain the highest level of ethical standards, professional
integrity and regulatory compliance. HDFC Banks business philosophy is based on 4 core
values such as:
1.
2.
3.
4.

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

BUSINESS STRATEGY:

Increasing market share in Indias expanding banking

Delivering high quality customer service
Maintaining current high standards for assets quality through disciplined credit risk
management
Develop innovative products and services that attract targeted customers and address
inefficiencies in the Indian financial sector.

PRODUCT SCOPE:HDFC Bank offers a bunch of products and services to meet the every need of the
people. The company cares for both, individuals as well as corporate and small and medium
enterprises. For individuals, the company has a range accounts, investment, and pension scheme,
different types of loans and cards that assist the customers. The customers can choose
the suitable one from arrange of products which will suit their life-stage and needs. For
organizations the company has a h o s t o f c u s t o m i z e d s o l u t i o n s t h a t r a n g e f r o m
f u n d e d s e r v i c e s , N o n - f u n d e d s e r v i c e s , Val u e addition services, Mutual fund etc.
These affordable plans apart from providing long term value to the employees help in enhancing

goodwill of the company. The products of the company are categorized into various sections
which are as follows:1. Accounts and deposits.
2. Loans.
3. Investments and Insurance.
4. Forex and payment services.
5. Cards
6. Customer center

PRODUCTS AND SERVICES AT A GLANCE:1 . Personal banking services

2 . Accounts deposits and savings account
3 . Regular savings account
4 . Savings plus account
5 . Savings max account
6 . Senior citizens account
7 . No frills account
8 . Institutional savings account
9 . Payroll account
10. Classic Salary Account
11. Regular Salary Account
12. Premium Salary Account
13. Defense Salary Account
14. Kid's Advantage Account
15. Pension Saving Bank Account
16. Family Savings Account

Current Account:1.
2.
3.
4.
5.
6.

Plus Current Account

Trade Current Account
Premium Current Account
Regular Current Account
Apex Current Account
Max Current Account

7. Reimbursement Current Account

Fixed Deposit:1.
2.
3.
4.
5.

Regular Fixed Deposit

Super Saver Account
Sweep-in Account
Recurring Deposit Demand Account
Safe Deposit

Loans:1. Personal Loans

2. Home Loan
3. Two Wheeler Loans
4. New Car Loans
5. Used Car Loans
6. Overdraft against Car
7. Express Loans
8. Loan against Securities
9. Loan against Property
10. Commercial Vehicle Finance
11. Working Capital Finance
12. Construction Equipment Finance

Investments & Insurance:1.

2.
3.
4.
5.
6.
7.

Mutual Funds
Insurance
Bonds
Financial Planning
Knowledge Centre
Equities & Derivatives
Mudra Gold Bar

Forex Services:1.
2.
3.
4.
5.
6.
7.

Trade Finance
Travelers Cheque
Foreign Currency Cash
Foreign Currency Drafts
Foreign Currency Cheque Deposits
Foreign Currency Remittances
Forex Plus Card

Payment Services:1.
2.
3.
4.
5.

Net safe
Prepaid Refill
Bill Pay
Direct Pay
Visa Money Transfer

E-Monies Electronic Funds Transfer:1. Excise & Service Taxes

Access Your Bank - One View:1.

2.
3.
4.
5.

Instant Alerts
Mobile Banking
ATM
Phone Banking
Branch Network

Cards:1.
2.
3.
4.
5.
6.
7.
8.
9.

Silver Credit Card

Gold Credit Card
Woman's Gold Credit Card
Platinum plus Credit Card
Titanium Credit Card
Value plus Credit Card
Health plus Credit Card
HDFC Bank Idea Silver Card
HDFC Bank Idea Gold Card

WHOLESALE BANKING SERVICES:1. Funded Services

2. Non Funded Services
3. Value Added Services
4. Internet Banking

5.
6.
7.
8.
9.

Clearing Sub-Membership
RTGS sub membership
Fund Transfer
ATM Tie-ups
Corporate Salary a/c

Tax Collection:1.
2.
3.
4.
5.
6.

Financial Institutions
Mutual Funds
Stock Brokers
Insurance Companies
Commodities Business
Trusts

NRI BANKING SERVICES:1. Rupee Saving a/c

2. Rupee Current a/c
3. Rupee Fixed Deposits
4. Foreign Currency Deposits
5. Accounts for Returning Indians
6. Payment Services
7. Net Safe
8. Bill Pay
9. Instant Pay
10. Direct Pay
11. Visa Money
12. Online Donation
13. Remittances

DISTRIBUTION NETWORK:-

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over
1229 branches spread over 444 cities across India. All branches are linked on an online real-time
basis. Customers in over 120 locations are also serviced through Telephone banking. The banks
expansion plans take into account the needs to have a presence in all major industrial and
commercial centers where its corporate customers are located as well as the need to build a
strong retail customer base for both deposits and loan products. Being a clearing/ settlement bank
to various leading stock exchanges, the bank has branches in the centers where the NSE/BSE has
a strong and active member base.
The bank also has a network of about over 2526 networked ATMs across these cities. Moreover,
HDFC banks ATM network can be accessed by all domestic and international Visa/ Matercard,
Visa Electron/Maestro, etc.

PROMOTER:HDFC is Indias 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 mortgages 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 shareholders 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
had been a director of the bank since October 2006. A retired IAS officer, Mr. Vasudev has had
illustrated 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.

TECHNOLOGY:HDFC banks operates in a highly automated environment in terms of information technology

and communication systems. All the banks 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 sustained efforts and investments in acquiring the best technology available
internationally, to build the infrastructure for a world class bank. The banks 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 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.

*INTEGRITY
*CUSTOMER CENTRIC
*TEAM WORK
*JOY AND SIMPLICITY

OBJECTIVES, ROLES AND LIMITATIONS OF STUDY

OBJECTIVES:1. To examine the essential dimensions of service quality i.e., RATER- Reliability,
assurance, tangibles, empathy and responsiveness of HDFC bank and its effect on
customers satisfaction.
2. To find out the level of perception of the customers from the service quality offered by
the banks.
3. To know which service quality dimension of the bank is performing well.
4. To identify which dimension of service quality needs improvement so that the quality of
service of HDFC banks is enhanced.

IMPORTANCE:The study would try to throw some insights into the existing services provided by the banks,
perceptions and the actual services 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.
SCOPE:The scope of this research is to identify the service quality of HDFC bank. This research is based
on primary data and secondary data. This study only focuses on the dimensions of service quality
i.e., RATER. It aims to understand the skill of the company in the area of service quality that are

performing well and shows those areas which require improvement. The study was done taking
two branches of HDFC bank into consideration. The survey was restricted to the bank customers
in Delhi only.

LIMITATIONS:1. The study for 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
industry.
2. The study can also not be generalized for public and private sector banks of the
country.
3. Respondents may give biased answers for the required data. Some of the respondents
did not like to respond.
4. 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 analyses and come at a right conclusion.

FINDINGS:1. 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 hesitste 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 certain time as promised. The
employees should take this problem seriously and take steps to remove this.
2. As score for Assurance is at second place after responsiveness, so the customers
of HDFC bank are very confident and feel safe while transacting with the bank.
Moreover the employees of the bank have proved to be trustworthy. Employees
are also educated enough to answer all questions.
3. The score of Tangibility dimension of service quality of HDFC bank is the lowest.
The service quality factor tangible is defined by whether the physical facilities
and materials associated with the service are visually appealing at the bank. These
are all factors that customers notice before or upon entering the bank. Customers

4.

5.

6.

7.

expectations regarding visual appealing of HDFC bank. Respondents were

uncertain about the neat appearance of the reception desk employees. So they
should work on that and try to fulfill the gap.
According to my findings, the score of Empathy is not satisfactory but not
unsatisfactory also. HDFC bank is unable to give individual attention to its
customers and is unable to understand specific needs of its customers. But still
bank has taken steps to satisfy its customers by keeping operating hours
convenient to its customers and keeping their interest best at heart.
In HDFC bank, the score of Responsiveness is highest so they are focusing on
prompt services, 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. Overall HDFC
banks responsiveness dimension of service quality is the higher.
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 to dimension. They feel that the bank is unable to give them
individual attention and its equipments are 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.

CONCLUSIONS:Based on the study conducted it can be conducted that responsiveness, assurance

and reliability are the critical dimensions of service quality of HDFC bank and
they are directly related to overall service quality. The factors that may delight
customers tend to be concerned more with the intangible nature of the service,
commitment, attentiveness, friendliness, care and courtesy.
The employees give prompt services, always are ready to answer the questions
and are trustworthy. The main sources of dissatisfaction appear to be cleanliness,
up to date technology modern equipments, and neatly dressed up employees. The
tangibility dimension of service quality of HDFC bank is highly disappointing
and serious steps are needed to be taken to enhance this dimension. 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 employees,
the management and the policy makers of the industry. These are areas in which
customers are hugely dissatisfied with the services of the banks against their

expectation. This high degree of dissatisfaction resulting from the services

received clearly questions the design of services or subsequent response of the
bank employees. These limitations are too serious to be avoided as these question
the front-line people dealing with the customers and the approach of the
management in taking customers seriously.The management should understand
the benefits of service quality. It include increased customer satisfaction,
improved customer retention, positive word of mouth, reduced staff turnover,
decreased operating costs, enlarged market share, increased profitability, and
improved financial performance. In the days of instance competition, superior
service is only differentiator left before the banks to attract, retain and partner
with the customers. Superior service quality enables firm to differentiate itself
from its competition, gain a sustainable competitive advantage, and enhance
efficiency.

RECOMMENDATIONS:1. 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.
2. 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 drive to serve.
3. Intangibles please customers just as much as intangible in the banking
industry. People tend to visit the same branch of 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.
4. Learning to understand customer 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 customers oriented,
they will, in effect, become a useful and pleasant way to shop.
5. Keeping the bank with up-to-date technologically are important factors.
Modern equipments, new improved technology should be replaced with the

old ones. If the staff inside is pleasant and well-informed, in an aesthetically

pleasing environment, then customers satisfaction will be high.
6. The five-dimensional structure could possibly serve as a meaningful
framework for trading it against the performance of competitors. Items on
some dimensions should be expanded if that is necessary for reliability.
7. Thus, the banking industries must continuously measure and improve these
dimensions in order to gain customers loyalty.

REFERENCES AND BIBLIOGRAPHY

REFERANCES:
Kotler Philip, marketing management (Pearson Education)
WEBSITE:
www.hdfcbank.com
www.hdfcindia.com
www.wikipedia.org
www.marketresearch.com