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A PROJECT REPORT
ON
CONTENTS
1. INTRODUCTION
2. COMPANY PROFILE
4. RESEARCH OBJECTIVE
5. RESEARCH METHODOLOGY
6. DATA ANALYSIS
8. CONCLUSION
9. RECOMMENDATIONS
10. BIBLIOGRAPHY
INTRODUCTION
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 financial house that will more
than just clear his cheque and updates his passbook: he wants a bank that
cares and provides great services.
So does HDFC bank meet these heightened expectations? What are the
customers‟ perceptions of service quality of the banks? Which dimension
of service quality of HDFC bank is performing well? To find out answers to
these questions I undertook a survey of 2 branches of HDFC bank.
A lot of surveys have been done in the past to understand the aspect of
customer satisfaction and to find out the customer friendly banks. My
research is conducted to find out “SERVICE QUALITY OF HDFC BANK”.
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
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.
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
Bank's expansion plans take into account the need to have a presence in
all major industrial and commercial centers where its corporate customers
are located as well as the need to build a strong retail customer base for
both deposits and loan products. Being a clearing/settlement bank to
various leading stock exchanges, the Bank has branches in the centers
where the NSE/BSE has a strong and active member base.
The Bank also has a network of about over 2526 networked ATMs across
these cities. Moreover, HDFC Bank's ATM network can be accessed by all
domestic and international Visa/MasterCard, Visa Electron/Maestro,
Plus/Cirrus and American Express Credit/Charge cardholders.
PROMOTER
HDFC is India's premier housing finance company and enjoys an
impeccable track record in India as well as in international markets. Since
its inception in 1977, the Corporation has maintained a consistent and
healthy growth in its operations to remain a market leader in mortgages. Its
outstanding loan portfolio covers well over a million dwelling units. HDFC
has developed significant expertise in retail mortgage loans to different
market segments and also has a large corporate client base for its housing
related credit facilities. With its experience in the financial markets, a strong
market reputation, large shareholder base and unique consumer franchise,
HDFC was ideally positioned to promote a bank in the Indian environment.
MANAGEMENT
Mr. C.M. Vasudev has been appointed as the Chairman of the Bank with
effect from 6th July 2010 subject to the approval of the Reserve Bank of
India and the shareholders. Mr. Vasudev has been a Director of the Bank
since October 2006. A retired IAS officer, Mr. Vasudev has had an
illustrious career in the civil services and has held several key positions in
India and overseas, including Finance Secretary, Government of India,
Executive Director, World Bank and Government nominee on the Boards of
many companies in the financial sector. 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.
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 Machines (ATMs). The Bank has made substantial efforts and
investments in acquiring the best technology available internationally, to
build the infrastructure for a world class bank. The Bank's business is
supported by scalable and robust systems which ensure that our clients
always get the finest services we offer. The Bank has prioritised its
engagement in technology and the internet as one of its key goals and has
already made significant progress in web-enabling its core businesses. In
each of its businesses, the Bank has succeeded in leveraging its market
position, expertise and technology to create a competitive advantage and
build market share.
QUALITY POLICY
SECURITY: The bank provides long term financial security to their policy.
The bank does this by offering life insurance and pension products.
INTEGRITY
CUSTOMER CENTRIC
TEAM WORK
BUSINESS
HDFC Bank offers a wide range of commercial and transactional banking
services and treasury products to wholesale and retail customers. The
bank has three key business segments:
Wholesale Banking Services The Bank's target market ranges from large,
blue-chip manufacturing companies in the Indian corporate to small & mid-
sized corporates and 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
Treasury
Within this business, the bank has three main product areas - Foreign
Exchange and Derivatives, Local Currency Money Market & Debt
Securities, and Equities. With the liberalisation of the financial markets in
India, corporates need more sophisticated risk management information,
advice and product structures. These and fine pricing on various 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.
To find out the level of perception of the customers from the service
quality offered by the banks.
RESEARCH METHODOLOGY
DATA SOURCE
Primary Data:
The primary data was collected by means of a survey. Questionnaires were
prepared and customers of the banks at two branches were approached to
fill up the questionnaires. The questionnaire contains 20 questions which
reflect on the type and quality of services provided by the banks to the
customers. The response of the customer and the is recorded on a grade
scale of strongly disagree, disagree, uncertain, agree and strongly agree
for each question. The filled up information was later analyzed to obtain the
required interpretation and the findings.
Secondary Data:
In order to have a proper understanding of the service quality of bank a
depth study was done from the various sources such as books, a lot of data
is also collected from the official websites of the banks and the articles from
various search engines like Google, yahoo search and answers.com.
RESEARCH SAMPLE
SAMPLING PLAN:
Since it is not possible to study whole universe, it becomes necessary to
take sample from the universe to know about its characteristics.
Sampling Units: Customers of HDFC bank
SAMPLE SIZE:
The work is a case of HDFC Bank, one of the largest bank of Indian
banking industry together representing over 25 per cent of the market
share of Indian banking space. The survey was conducted in the city of
BBSR and Cuttack with two branches of HDFC Bank, with 50 customers as
respondent.
DATA COLLECTION TOOL Data was collected through a structured
questionnaire. Likert scale technique is used. The format of a typical five-
level Likert item is:
1. Strongly disagree
2. Disagree
4. Agree
5. Strongly agree
RESEARCH LIMITATIONS
The study is only for the HDFC Bank confined to a particular location and a
very small sample of respondents. Hence the findings cannot be treated as
representative of the entire banking industry.
The study can also not be generalized for public and private sector banks
of the country.
Respondents may give biased answers for the required data. Some of the
respondents did not like to respond.
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.
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
The employees give prompt services, always are ready to answer the
questions and are trustworthy. The main sources of dissatisfaction appear
to be cleanliness, up to date technology modern equipments, and neatly
dressed up employees. The Tangibility dimension of service quality of
HDFC bank is highly disappointing and serious steps are needed to be
taken to enhance this dimension. Customers of the bank are dissatisfied
with the empathy dimension. To satisfy these customers, the management
can take some attempts, noted earlier as recommendations.
The study brings about the areas which require urgent attention of the
employees, the management, and the policy makers of the industry. These
are areas in which customers are hugely dissatisfied with the services of
the banks against their expectation. This high degree of dissatisfaction
resulting from the services received clearly questions the design of services
or subsequent response of the bank employees. These limitations are too
serious to be avoided as these question the front-line people dealing with
the customers and the approach of the management in taking customers
seriously.
BIBLIOGRAPHY
References
Kotler Philip, marketing management, (Pearson education, 12th edition)
Malhotra K. Naresh, marketing research (An applied orientation), Research
design,
(Prentice hall of India pvt. 5th edition)
Zeithmal V. A., Grembler D.D., Bitner M.j., and Pandit A.: Service
Marketing Integrated customer Focus across the Firm” (4th Edition)
M.K. Rampal : Service Marketing
Websites
www.google.com
www.hdfcbank.com
www.hdfcindia.com
www.wikipedia.org
www.marketresearch.com