PROJECT REPORT

ON

“SERVICE QUALITY OF HDFC

BANK” AT

HDFC BANK

(GOWLIOR)

Summer Training Project Report

Submitted in the partial fulfillment of the Requirement for
MANAGEMENT

Mr. C.M. Vasudev has been appointed as the Chairman of the

from
Bank 6th
withJuly 2010 subject to the approval of the Reserve Bank
effect
shareholders.
of India and the Mr. Vasudev has been a Director of the Bank
retired IAS officer,
since October 2006.Mr.A Vasudev has had an illustrious career in
and has held
the civil several key positions in India and overseas,
services
Secretary, Government of India, Executive Director, World
including Finance
nominee
Bank andon the Boards of many companies in the financial
Government
The Managing Director, Mr. Aditya Puri, has been a
sector.
25 years, andbanker
professional beforeforjoining
over HDFC Bank in 1994 was heading
operations
Citibank's in Malaysia.
The Bank's Board of Directors is composed of eminent
of experience
individuals within public policy, administration, industry and
a wealth
Senior executives
commercial banking. representing HDFC are also on the Board.
Senior banking professionals with substantial experience in
various
India and businesses
abroad head and functions and report to the Managing
professional
Director. Given expertise
the of the management team and the overall
and
focusretaining the best talent in the industry, the bank believes
on recruiting
significant competitive
that its people are a strength.

TECHNOLOGY

HDFC Bank operates in a highly automated environment in

technology and communication systems. All the bank's
terms of information
connectivity,
branches havewhichonlineenables the bank to offer speedy funds
customers. Multi-branch
transfer facilities to its access is also provided to retail
branch network
customers through andtheAutomated Teller(ATMs).
The Bank has made substantial efforts and investments in
technology
acquiring the available
best internationally, to build the infrastructure
bank.
for The
Theagoals
key world
businesses.
market
Bank Bank's
class
position,
and
has
In has business
prioritised
each
expertise
already isengagement
of its its supported
businesses,
made
and theby
technology
significant scalable
Bank
intoprogress and
technology
create robust
has succeeded
ain web-
and thein
ensure
systemsthat
internet
enabling
leveraging
competitive
build market
as our
which
itsone
its
coreclients
its always
advantage
share.
of and get the finest13 services we offer.
QUALITY POLICY

SECURITY: The bank provides long term financial security to their

bank does this by offering
policy. The life insurance and pension products.

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

INNOVATION: Recognizing the different needs of our customers, the bank

a range of innovative
offersproducts to meet these needs.

INTEGRITY

CUSTOMER CENTRIC

PEOPLE CARE “ONE FOR ALL AND ALL FOR ONE”

TEAM WORK

JOY AND SIMPLICITY

14
BUSINESS

HDFC Bank offers a wide range of commercial and

and treasury products
transactional to wholesale and retail customers. The
banking services
business
bank has segments.
three key

Wholesale Banking Services The Bank's target market ranges from large, blue-
chip manufacturing companies in the Indian corporate to small
corporates
& mid-sized and agri-based businesses. For these customers, the
wide
Bank range of commercial
provides a and transactional banking services,
capital
includingfinance,
working trade services, transactional services, cash
bank is also a etc.
management, leading
The provider of structured solutions, which
management
combine cashservices with vendor and distributor finance for
supply chain
facilitating management for its corporate customers. Based on
superior
product delivery / service levels and strong customer
its superior
made significant
orientation, inroads
the Bank has into the banking consortia of a number
corporates including multinationals, companies from the
of leading Indian
and primebusiness
domestic public sector companies. It is recognised as a leading
houses
management
provider of cash and transactional banking solutions to corporate
funds, stockmutual
customers, exchange members and banks.

Retail Banking Services

The objective of the Retail Bank is to provide its target market

range of financial
customers a full products and banking services, giving the
window
customerfor all his/her banking requirements. The products are
a one-stop
class
backed service and delivered to customers through the growing
by world-
well
branchas network,
through alternative
as delivery channels like ATMs, Phone
The HDFC
Bank
keeping
information
array of
Plus
retail
in and
mind
Bank
and
loan
the
advice
needs
Preferred
Investment
products
of
oncustomers
various
program
including
Advisory
investment
who
for
Auto
Services
high
seek
Loans,
net
avenues.
distinct
worth
programs
Loans
financial
The
Banking
Banking,and NetMobile Banking.
individuals,
have
solutions,
Bank
against
securities,
been
also
marketable
has
Personal
designed
thea HDFC
wideLoans and Loans for Two-wheelers.
15
It is also a leading provider of Depository Participant (DP)
customers,
services forproviding
retail customers the facility to hold their
form. HDFCinBank
investments was the first bank in India to launch an
electronic
in associationDebit
International with VISA
Card (VISA Electron) and issues the
card as well.Maestro
Mastercard The Bank launched its credit card business in late
debit
2010,
2001. the bank had a total card base (debit and credit cards) of
By March
Bank
over 14 is million.
also one The
of the leading players in the “merchant
over 90,000business
acquiring” Point-of-sale
with (POS) terminals for debit / credit
merchant establishments.
cards acceptance at The Bank is well positioned as a
based
leader B2C opportunities
in various net including a wide range of internet
Fixed
banking Deposits,
servicesLoans,
for Bill Payments, etc.

Treasury

Within this business, the bank has three main product areas -
and Derivatives,
Foreign Exchange Local Currency Money Market & Debt
With the liberalisation
Securities, and Equities. of the financial markets in India,
sophisticated
corporates need riskmore
management information, advice and product
and fine pricing
structures. Theseon various treasury products are provided
Treasury team.
through the To comply with statutory reserve requirements,
bank's
to
thehold
bank25% of its deposits in government securities. The
is required
responsible for managing
Treasury business is the returns and market risk on this .
investment portfolio

16
SERVICE
IN
QUALIT
BANKS
Y

17
In the days of intense competition, the banks are no different
consumer
from any othermarketing company. It has become essential for the
general and banks
service firms in in particular to identify what the customer's
are and how those customer requirements can be met
requirements
where product
effectively. anddays
In the price differences are blurred, superior
service provider
by the is the only differentiator left before the banks
retain and partner with the customers. Superior service quality
to attract,
to differentiate
enables a firm itself from its competition, gain a sustainable
advantage, and enhance efficiency .The benefits of service
competitive
increased customer satisfaction, improved customer retention,
quality include
of mouth,word
positive reduced staff turnover, decreased operating costs,
share,
enlargedincreased
market profitability, and improved financial
construct
performance. of service
The quality has therefore been a subject of great
service
interest marketing
to researchers.
Service quality has been defined by various experts in various
'Service
ways as:Quality is the difference between customers'
performance
expectations for prior to the service encounter and their
service
service received.'
perceptions of theAccording to Gefan „Service quality is the
comparison that customers make between the qualities of
subjective
want
serviceto that
receive
theyand what they actually get.' Parasuraman says,
is determined
'Service qualityby the differences between customer's
provider's
expectations performance
of servicesand their evaluation of the services they
Service
received.quality is 'the delivery of excellent or superior service
customer
relative toexpectations . Service quality is recognized as a multidimensional
construct. While the number of dimensions often varies from
researcher,
researcher to there is some consensus that service quality consists
primary
of three aspects: outcome quality, interaction quality, and
environment
physical service quality. Outcome quality refers to the customer's
the core service
assessment of which is the prime motivating factor for
services
obtaining(e.g.
the money received from ATM). Interaction quality
customer's
refers to theassessment of the service delivery process, which is
rendered via a physical interface between the service provider,
typically
via
consumer's
physical
evaluation
thattechnical
the service
in person, service
of
orevaluation
equipment,
any
isenvironment
tangible
provided
of and
the
aspect
in/attitude
the
quality
with.
customer.
associated
Itof
dimension
includes,
the Itservice
with
includes,
for
refers
theproviding
example,
facilities
to
forthe
instance,
staff.
consumer's
or
the
conditions
equipment
physical
Thethe of an ATM machine. 18
The most popular dimensions of service quality--features five dimensions:
tangibles, reliability, responsiveness, empathy, and The
tangibles
assurance. dimension corresponds to the aforementioned
environment aspect, the reliability dimension corresponds to
physical
outcome aspect, and the remaining three represent aspects of
the service
quality. Both the costs and the revenue of firms are affected by
interaction
purchases, positive word-of-mouth recommendation, and
repeat
Moreover, there is strong evidence that service quality has
customer feedback.
influence on the behavioral intentions of customers and/or an
either a direct
influence
indirect on such intentions, mediated through customer
RATER is an instrument that might be used to define and measure
satisfaction.
service quality
bankingand to create useful quality-assessment tools.

The RATER may finally provide the following benefits to the

HDFC bank:
1. It is the first approach to add and mix the customers religious beliefs and
cultural values with other quality dimensions.

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

3. It links quality with customers satisfaction and service encounter.

4. It provides information at several levels, already organized

groupings.
into meaningful

5. It is a proven approach, which results in usable answers to

customers needs.
meet

6. It is empirically grounded, systematic and well documented.

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

19
 RESPONSIVENES

TANGIBILIT RELIABILITY

EMPATHY ASSURANCE

DIMENSIONS OF SERVICE
QUALITY

20
DIMENSIONS OF SERVICE
QUALITY

TANGIBILITY: This dimension deal with modern looking equipments and

appealing part ofvisual
banks.

RELIABILITY : This dimension has a direct positive effect on perceived

quality and customer satisfaction in banking institutions. Banks
service
free
mustservice
provideand secure online transactions to make customers
error
feel comfortable.

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

ASSURANCE : Customer expects that the bank must be secured and the
of the employeesbehavior
must be encouraging.

EMPATHY: individual attention, customized service and convenient

hours are verybanking
much important in today s service .

In order to achieve better understanding of service quality in

the proposed
banking five service quality dimensions are conceptualized
sector,
the
to overall
illustrate
Banking
producer
interact
banking, service
thequality
personally
was
where
interactions,
in there
and
sector
are
sinceofinthe
thehigh ofbanking
featuring
use isinatrelation
customer-producer
banking,
goods
medium
consumers
goods
a mediumto service
interactions,
and level.
higher and
providers
customers
customer
providers
Hence,
the in perspective.
quality of 21
service is determined to a large extent by the skills and attitudes
producing
of people the service.

In the case of services, because customers are often either

the production
direct observersprocess
of or active participants, how the process is
also has a strong influence on the overall impression of the
performed
A well-performed
quality of service. service encounter may even overcome the
impression caused by poor technical quality as well as generate
negative
word-of-mouth, particularly if customers can see that
positive
very hard tohave
employees satisfy them in the face of problems outside their
worked
Employees
control. are part of the process, which connects with the
point of sale,
customer and hence employees remain the key to success at
at the
encounters
these serviceor “moments of truth”. It is these encounters with
during a service that are the most important determinants of
customers
satisfaction, and a customer s experience with the service will be defined by
overall customer
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
check
persondeposit
at the 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

bank
defined performs
by whetherthe service
the right the first time, whether the
tell customers
employees exactly
of the bankwhen services will be performed,
to its promises,
whether the bank whether
lives upcustomers feel safe in their transactions
whether
with the thebank employees
and show a sincere interest in solving the
problems.
customers In short, this dimension is related to the banks ability to perform the
promised service accurately and dependably. Performing the
and
serviceaccurately is the heart of service marketing excellence.
dependably
performs
When a companya service carelessly, when it makes avoidable
to
in
It deliver
problem
satisfaction,
isitsvery
mistakes, onthe
and promises
capabilities
does
important
crop
company
whenandup,
to made to
it undermines
do
bythe
failscan attract
resolving
service customers,
significantly
itsthe
right
chances
problem
the toittime.
improve
of
first shakes
earning
the a case confidence
customer
In
customers
reputation
aexcellence.
customer
retention.
service for service 22 s
However, companies fare best when they prevent service
and fare worst
problems when service problems occur and the company
altogether
them
eitheror does not resolve them to the customer
ignores s satisfaction .

Performing the service accurately is perhaps the most important

service
factor inquality excellence. The cost of performing the service
includes not only the cost of redoing the service but also the
inaccurately
with negative word-of-mouth generated by displeased
cost associated
services,
customers. theInfactory
case ofis the field. Again, services are intangible
criteria
and hencefor the
flawless services are more subjective than the
free tangible
criteria goods. Hence for most services, customers
for defect- perceptions of
whether the service has been performed correctly, and not
established criteria, are the major determinants of reliability.
provider-

The service quality factor tangible is defined by whether the

and materials
physical associated with the service are visually appealing
facilities
These are all factors that customers notice before or upon
at the bank.
Such visual
entering the factors
bank. help consumers form their initial
challenge
impressions. in service marketing is that customers cannot see a
A crucial
see the various
service but can tangibles associated with it - all these tangibles,
facilities,
the serviceequipment and communication materials are clues
intangible
about the service. If unmanaged, these clues can send to the s
wrong
customermessages about the service and render ineffective the
strategy of the company. On the other hand, improving quality
marketing
tangibles means attention to the smallest details that
through
consider
competitorstrivial. Yet, these visible details can add up for
might
message
customersofand caring anda competence.
signal

Customers may reveal new aspects of service quality in

important to them,
banking that are and these would have to be incorporated in
to
thefurther explore
scale so as the concept of service quality in the banking
arena.

23
RESEARCH
OBJECTIV
AND
E
RESEARCH

METHODOLOGY24
RESEARCH OBJECTIVE

The objective of the study is as follows:

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

Reliability,
RATER- assurance, tangibles, empathy and responsiveness
its effect on
of HDFC customer
bank and s satisfaction.

To find out the level of perception of the customers from the

offered by the
service banks.
quality

To know which service quality dimension of the bank is

performing well.

To identify which dimension of service quality needs

quality of service of
improvement soHDFC
that thebanks is enhanced.

25
IMPORTANCE AND SCOPE OF THE
STUDY

The study would try to throw some insights into the

services provided by the banks, perceptions and the actual
existing
quality of the bank. The results of the study would be able
service
recognize the lacunae in the system and thus provide key
to
where improvement is required for better performance and
areas
ratio.
successIn the days of intense competition, superior service
differentiator
is the only left before the banks to attract, retain and
with the customers. Superior service quality enables a
partner
differentiate
firm to 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

research
HDFC bank. is based
Thison primary data and secondary data. This
on theonly
study dimensions
focuses of service quality i.e. RATER. It aims to
of the company
understand in the area of service quality that are
the skill
shows thosewell
performing areasand
which require improvement. The study was
two
donebranches
taking of HDFC bank into consideration. The survey
the
wasbank customers
restricted to in Delhi only.

26
RESEARCH METHODOLOGY

DATA SOURCE

Primary Data:
The primary data was collected by means of a survey.
prepared and customers
Questionnaires were of the banks at two branches were
up the questionnaires.
approached to fill The questionnaire contains 20 questions
on the reflect
which type and quality of services provided by the banks to the
The response of the customer and the is recorded on a grade
customers.
disagree, disagree, uncertain, agree and strongly agree for each
scale of strongly
filled up information
question. The was later analyzed to obtain the required
and the findings .
interpretation

Secondary Data:

In order to have a proper understanding of the service quality of

study
bank awas done from the various sources such as books, a lot of
depth
collected from the official websites of the banks and the articles
data is also
search engines like Google, yahoo search and answers.com.
from various

RESEARCH DESIGN

The research design is exploratory till identification of service

parameters.
quality Later it becomes descriptive when it comes to
customer perception of service quality of the banks.
evaluating
characteristics
Descriptive
Although
cannot describe
theresearch
data
about
what
description
the
answers
caused
population
athe
issituation.
factual,
questions
or phenomenon
accurate
Thus,
who,
descriptive
what,
andbeing
where,
Descriptive
studied.
when
systematic,
research research
andcannot
how.
the research
be , also known as statistical
27 research
, describes data and
used to create a causal relationship, where one variable affects
other words,
another. In descriptive research can be said to have a low
internal validity
requirement for .

The description is used for frequencies, averages and other

Often the best
statistical approach, prior to writing descriptive research, is
calculations.
survey investigation.
to conduct a Qualitative research often has the aim of
researchers may follow-up with examinations of why the
description and
what the implications
observations exist andof the findings are

RESEARCH SAMPLE

SAMPLING PLAN:

Since it is not possible to study whole universe, it becomes

sample from
necessary the universe to know about its characteristics.
to take

Sampling Units: Customers of HDFC bank

Sample Technique: Random Sampling.

Research Instrument: Structured Questionnaire.

Contact Method: Personal Interview.

28
SAMPLE SIZE:

The work is a case of HDFC Bank, one of the largest bank of

industry together representing over 25 per cent of the market
Indian banking
banking space. The survey was conducted in the city of Delhi
share of Indian
HDFC Bank,
with two with 50
branches of customers as respondent.

DATA COLLECTION TOOL

1. Strongly disagree

2. Disagree

3. Neither agree nor disagree

4. Agree

5. Strongly agree

Likert scaling is a bipolar scaling method, measuring either

negative
positive orresponse to a statement. The questionnaire consists of
first part consists
two parts. The of three questions concerning the
of the respondent
demographic such as the name, age, educational
information
income.quality
service
assurance,Thetangibility,
second
s perception
of HDFC
part
empathy
consisting
bank
aboutservice
and
the responsiveness
service
of quality
18 questions
quality
dimension
of
isexploring
used
HDFC.
ofin For evaluation
qualifications and
respondent
the
reliability,
order
evaluate
to the actual
of service quality of HDFC29bank.
LIMITATIONS OF THE STRATEGY

The study is only for the HDFC Bank confined to a particular

very small
location andsample
a of respondents. Hence the findings cannot be
representative
treated as of the entire banking industry.

The study can also not be generalized for public and private
the country.
sector banks of

Respondents may give biased answers for the required data.

respondents
Some of the did not like to respond.

Respondents tried to escape some statements by simply

agree nor disagree”
answering “neither to most of the statements. This was one of
important
the most limitation faced, as it was difficult to analyse and
conclusion.
come at a right

In our study we have included 50 customers of bank because of

time limit.
30
DATA
ANALYSI
S

31
 Ques. Age

AGE CATEGORY FREQUENCY PERCENTAGE

CUMULATIVE
PERCENTAGE

18-23 Years
10 20 20
24-29 Years
17 34 54
30-35 Years 15 30 84

35 Years and above

8 16 100
TOTAL
50 100

Sales

16 % 20 %

18-23 Year
30 % 24-29 Year

34 %32 30-35 Year

35 and above
INTERPRETATION

From the table and graph above it can be seen that

20% respondent s age are 18 to 23 years.

34% respondent s age are 24 to 29 years.

30% respondent s age are 30 to 35 years..

16% respondent s age are 35 to above years.

Ques. Educational qualifications

CATEGORY FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

UNDER 13 26 26
GRADUATE

GRADUATE
20 40 66
17
50 100
34
POST GRADUATE
TOTAL 100 33
 Sales

26 %
34 % UNDERGARDUATE

GRADUATE

POST GRADUATE

40 %

INTERPRETATION

From the table above it can be seen that.

26% respondents are Under graduate.

40% respondents are Graduate.

34% respondents are Post graduate .

34
TANGIBILITY DIMENSION OF SERVICE
(Questions1
QUALITY to 4):

Physical facilities, equipments and appearance of personnel

Ques.1 HDFC bank has modern looking equipment .

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

STRONGLY 5 10 10
DISAGREE

DISAGREE
25 50 60
UNCERTAIN
16 32 92
AGREE
4 8 100
TOTAL
50 100

Sales

8 % 10 %

32 % STRONGLY DISAGREE

DISAGREE

50 % UNCERTAIN

AGREE
35
INTERPRETATION

HDFC bank has modern-looking and hi-tech equipments. Here

that mostshow
analysis of the respondents disagreed with this statement.
respondents
Among the total50% disagreed, 32% were neutral and 8% agreed.
IAfter
found that majority of the respondents think that HDFC Bank
analysis
do not have
modern looking equipments or no hi-tech equipments .

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

appealing

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

DISAGREE
4 8 8
UNCERTAIN
29 58 66
AGREE
17 34 100
TOTAL
50 100

36
 Sales

8%
34 %
DISAGREE

UNCERTAIN
58 % AGREE

INTERPRETATION

HDFC bank s physical facilities are visually appealing. From this statement
found that 17 Ipersons agreed. 29 persons were uncertain and 4
disagreed. This means 58% people
persons
were uncertain about this statement. Out of the total
disagreed
respondentsandonly
no one
4% strongly agreed or disagreed with the
people agreed
statement. 17%that HDFC bank s physical facilities are visually appealing.

37
Ques.3 The bank's reception desk employees are neat .
appearing

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

DISAGREE
5 10 10
UNCERTAIN
21 42 52
AGREE
18 36 88
STRONGLY AGREE
6 12 100
TOTAL
50 100

Sales

12 %
10 %

DISAGREE
36 % 42 % UNCERTAIN

AGREE

STRONGY AGREE

38
INTERPRETATION

HDFC bank s employees appear neat. Here analysis shows that majority
neutral. Amongwere
the total respondent 21 respondents were
agreed
neutral,and 6 respondents strongly agreed. The rest disagreed.
18 people
found that some
From analysis I respondents agreed with this statement but
respondents
most of the think the employees of the HDFC bank appear
neat.

Ques.4 Materials associated with the service (such as

statements)
pamphlets orare visually appealing at the bank .

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

DISAGREE
7 14 14
UNCERTAIN
22 44 58
AGREE
18 36 94
STRONGLY 3 6 100
AGREE

TOTAL
50 100

39
 Sales

6%
14 %

36 % DISAGREE

UNCERTAIN

AGREE
44 % STRONGLY

INTERPRETATION

Materials associated with the service are visually appealing at

Here
HDFC36%bank.respondents agreed with this statement and 6%
with this agreed
strongly statement. 44% were neutral that is most and 14%
was no respondent
disagreed. There who strongly disagreed. Hence, in general it
concluded
can be that materials associated with the services such as
statements
pamphlets or are visually appealing.

40
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
it does so.
certain time,

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

STRONGLY 2 4 4
DISAGREE

DISAGREE
26 52 56
UNCERTAIN
5 10 66
AGREE
14 28 94
STRONGLY AGREE
3 6 100
TOTAL
50 100

41
 Sales

STRONGLY DISAGREE

DISAGREE

UNCERTAIN

AGREE

STRONGLY AGREE

INTERPRETATION

My sample size was 50. Here analysis shows that among the
26 respondents
total respondentsdisagreed and 14 respondents agreed with this
Iquestion.
found that 5 people were neutral and 2 people strongly
Also
concluded that majority
disagreed. Hence I of them disagreed that the bank when
something
promises tobydocertain time, it does so.

42
Ques. 6 When you have a problem, the bank shows a
in solving
sincere it.
interest

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

DISAGREE
3 6 6
UNCERTAIN
14 28 34
AGREE
26 52 86
STRONGLY AGREE 7 14 100

TOTAL 50 100

Sales

6%
14 %
28 %
DISAGREE

UNCERTAIN

AGREE
52 %
STRONGLY AGREE

43
INTERPRETATION

When you have a problem, HDFC bank shows sincere interest

After analysing
in solving it. this statement I found that most of the
52% respondents
respondents agreed.
agreed i.e. Also I found that 28% were neutral
statement
with this and 6% were committed with disagree. There was no
strongly
one who disagreed. Hence HDFC bank can be said to be
reliable.

Ques.7 The bank performs the service right the first

time.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

STRONGLY 2 4 4
DISAGREE

DISAGREE
8 16 20
UNCERTAIN
17 34 54
AGREE
17 34 88
STRONGLY AGREE
6 12 100
TOTAL
50 100

44
 Sales

4%
16%
34%
STRONGLY DISAGREE

DISAGREE

34% AGREE

12% STRONGLY AGREE

UNCERTAIN

INTERPRETATION

Total sample size was 50. Here analysis shows that among the
respondents 17 people agreed with this statement. They think
total
performs
that HDFC thebank
services right the first time. 6 people strongly
statement.
agreed withAlso
this17 people were neutral and the rest of the
disagreed
respondentsand strongly disagreed.

45
Ques.8 The bank insists on error free
records.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

DISAGREE 5 10 10
UNCERTAIN 10 20 30
AGREE 23 46 76
STRONGLY AGREE 12 24 100

50 100
TOTAL

Sales

10%
24 %
20%
DISAGREE

UNCERTAIN
46% AGREE

STRONGLY AGREE

46
INTERPRETATION

Bank insists on error free records. HDFC bank has proved from
that it surely insist on error free records as 46% respondents
my analysis
statement
agreed with and 24% strongly agreed. Only 10% respondents
this
one strongly
disagreed anddisagreed.
no

RESPONSIVENESS DIMENSION OF
QUALITY
SERVICE (Question 9 to 12):

Willingness to help customers and provide prompt

services

Ques. 9 Employees in the bank tell you exactly when

be
theperformed.
services will

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

STRONGLY 6 12 12
DISAGREE

DISAGREE
8 16 28
UNCERTAIN
13 26 54
AGREE
18 36 90
STRONGLY AGREE
5 10100
50
TOTAL 100 47
 Sales

12%

36% STRONGLY DISAGREE

DISAGREE

UNCERTAIN
26% STRONGLY AGREE
10% AGREE

INTERPRETATION

Employees in the bank tell you exactly when the services will
Majority of the respondents agreed with this statement. 26%
be performed.
were uncertain. At the same time 16% disagreed and 12%
respondents
with this disagreed
Strongly statement .

48
Ques. 10 Employees in the bank give you prompt .
service

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

DISAGREE
5 10 10
UNCERTAIN
16 32 42
AGREE
27 54 96
STRONGLY AGREE
2 4 100
TOTAL
50 100

Sales

4% 10%

54% 32% DISAGREE

UNCERTAIN

AGREE

STRONGLY AGREE

49
INTERPRETATION

Most of the respondents agreed with this statement. According

employees in HDFC Bank give prompt service. Among the
to my analysis,
agreed respondents were 27 and strongly agreed were 2. 16
total respondents
neutral and 5 disagreed. There was no respondent who strongly
people were
with this statement .
disagreed

Ques.11 Employees in the bank are always willing to

help you

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

UNCERTAIN
12 24 24
AGREE
29 58 82
STRONGLY AGREE
9 18 100
TOTAL
50 100
.

50
 Sales

18% 24%
UNCERTAIN

AGREE

58% STRONGLY AGREE

INTERPRETATION

Employees in HDFC bank are willing to help you. With this

disagreed
statement or
no strongly
one disagreed. Strongly agreed were 9 people
respondents
i.e. 18% strongly agreed, 29 people agreed i.e. 58%
and 24% respondents
respondents agreed were neutral.

51
Ques.12 Employees in the bank are never too busy to
your request.
respond to

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

DISAGREE
1 2 2
UNCERTAIN 11 22 24

AGREE
27 54 78
STRONGLY AGREE
11 22 100
TOTAL 50 100

Sales

22% 22%
DISAGREE

UNCERTAIN

54% AGREE

STRONGLY AGREE

52
INTERPRETATION

Employees in HDFC Bank ltd are never too busy to respond to

After analyzing this statement I found that most of the
your request.
with this statement.
respondents agreed Among the total respondents 22% strongly
54% agreed.
agreed and 11 respondents were neutral and 1 respondent
one strongly
disagreed. Nodisagreed .

ASSURANCE DIMENSION OF SERVICE

(Question13
QUALITY to 16):

Knowledge and courtesy of employees and their ability to

and confidence
inspire trust

Ques.13 The employees of the bank are trustworthy.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

DISAGREE
4 8 8
UNCERTAIN
13 26 34
AGREE
28 56 90
STRONGLY AGREE
5 10 100
TOTAL
50 100 53
 Sales

10% 8%

56% 26% DISAGREE

UNCERTAIN

AGREE

STRONGLY AGREE

INTERPRETATION

The employees of the bank are trustworthy. According to my

respondents
findings, 54%agreed that employees at HDFC bank are
respondents
trustworthy. were
13% neutral and 4% respondents disagreed with
this statement.

54
Ques.14 The behavior of employees in the bank instills
you.
confidence in

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

DISAGREE
28 56 56
UNCERTAIN
4 8 64
AGREE
13 26 90
STRONGLY AGREE
5 10 100
TOTAL
50 100

Sales

10%
26% 56%
DISAGREE

UNCERTAIN

AGREE
8% STRONGLY AGREE

55 S
INTERPRETATION

The behavior of employees in HDFC bank instills confidence

shows
in you.that
Heremost of the people disagreed. Among the total
analysis
respondents disagreed,
28 13 agreed and 5 strongly agreed. There
was
who no respondent
strongly disagreed. This means 56% respondent disagreed .
with this statement

Ques.15 You feel safe in your transactions

with the bank.
SCALE FREQUENCY PERCENTAGE CUMULATIVE
PERCENTAGE

DISAGREE
5 10 10
UNCERTAIN
16 32 42
AGREE
23 46 88
STRONGLY AGREE
6 12 100
TOTAL
50 100

56
 Sales

12% 10%
46%
32% 1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

INTERPRETATION

With this statement most of the respondents agreed. Among the

respondents
total 23 agreed with this statement and 6 strongly
respondents
agreed. 32%were neutral and 10% respondents disagreed. But
who
therestrongly
no one disagreed.

57
Ques.16 Employees in the bank have the knowledge to
questions.
answer your

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

DISAGREE
2 4 4
UNCERTAIN
9 18 22
AGREE
26 52 74
STRONGLY AGREE
13 26 100
TOTAL
50 100

Sales

4%
26% 18%
DISAGREE

UNCERTAIN
52% AGREE

STRONGLY AGREE

58
INTERPRETATION

From my analysis I found that 54% respondents agreed that

HDFC bankofhave complete knowledge to answer their
employees
respondents strongly agreed to this statement and only 4%
questions. 26%
disagreed.
neither 18%nor disagreed
agreed .

EMPATHY DIMENSION OF SERVICE QUALITY

20):
(Question17 to

Caring and individualized attention that firm provides to

its customers.
Ques.17 The bank gives you individual attention.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

DISAGREE
26 52 52
UNCERTAIN
12 24 76
AGREE
10 20 96
STRONGLY
100 AGREE
2 4100
50
TOTAL 59
 Sales

4%
20%
52%
DISAGREE
24% UNCERTAIN

AGREE

STRONGLY AGREE

INTERPRETATION

HDFC bank is not able to give individual attention to its

the total respondents
customers as out of 54% disagreed with this statement. 12%
respondents
of the were neutral and only 12% agreed and 2% strongly
From this finding it can be concluded that it is unable to give
agreed.
attention to its customers.
individual

60
Ques.18 The bank has operating hours convenient to
customers.
all its

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

DISAGREE
2 4 4
UNCERTAIN
14 28 32
AGREE
27 54 86
STRONGLY AGREE
7 14 100
TOTAL
50 100

Sales

14% 4%
28%
54% DISAGREE

UNCERTAIN

AGREE

STRONGLY AGREE

61
 INTERPRETATION

HDFC bank has operating hours convenient to all its customers. Out of 50
respondents, 27 respondents agreed with this statement and
respondents
only 2 disagreed. Also 7 respondents strongly agreed that
operating hours convenient to its customers
the bank has .

Ques.19 The bank has your interests best at

heart.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

STRONGLY 3 6 6
DISAGREE

DISAGREE
5 10 16
UNCERTAIN
10 20 36
AGREE
25 50 86
STRONGLY AGREE
7 14 100
TOTAL
50 100 62
INTERPRETATION

HDFC bank has your best interests at heart. Here analysis

respondents
shows that 25agreed and 7 respondents strongly agreed with this
20% were neutral and the rest disagreed and strongly disagreed
statement. .

Ques.20 The employees of the bank

needs.
understand your specific

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

DISAGREE
5 10 10
UNCERTAIN
21 42 52
AGREE
20 40 92
STRONGLY AGREE
4 8 100
TOTAL
50 100 63
 Sales

8% 10%

40% 42%
DISAGREE

UNCERTAIN

AGREE

STRONGLY AGREE

INTERPREATION

Employees of HDFC bank understand specific needs. With this

of the respondents
statement most were neutral. Among the total respondents
agreed and 4 respondents strongly agreed. 5 respondents
20 respondents
. this
disagreed with
statement

64
 MEASURING SERVICE QUALITY
DIMENSIONS

Measuring the quality of a service can be a very difficult

product
exercise.where
Unlikethere are specific specifications such as length,
weight, colour etc. a service can have numerous intangible or
depth, width,
specifications.
qualitative
Parasuraman, Zeithaml, and Berry (1985) provide a list of
service quality:
determinants of access, communication, competence, courtesy,
reliability, responsiveness, security, understanding, and
credibility,
five consolidated
tangibles. A total of dimensions of service quality are:
Tangibles (ques.1 to 4) - Physical facilities, equipments and
personnel
appearance of
Reliability (ques.5 to 8) - Ability to perform the promised
and accurately
service dependably
Responsiveness (ques.9 to 12) – Willingness to help customers
prompt services
and provide
Assurance (ques.13 to 16) – (including competence, courtesy,
security)
credibilityKnowledge
and and courtesy of employees and their
trust
abilityand
to confidence
inspire
Empathy (ques.17 to 20) – (including access, communication
understanding the customer) Caring and individualized
and
provides
attention tothatitsfirm
customer.
In order to calculate which dimension of service quality is
sample
performingof the questions
well, a are used in the questionnaire. Using the
questionnaire, obtain the score for each of the 20 statements.
the data,
After Overall
analysis of score to each statement is given on a scale of 1
given to1strongly
to 5 i.e. is disagreed i.e. the lowest score, then 2=
uncertain,
disagreed, 4= 3= agreed and 5= strongly agreed.
Sum the score
dimension for each dimension
is performing of service
well and which quality needs
dimension to obtain a
which
final tells which
score
improvement. 65
The scores for each dimension are summed
score
up andis aobtained:
final

SERVICE QUALITY DIMENSION Points

11
1. TANGIBILITY (1 TO 4)

13.5
2. RELIABILITY (5 TO 8)

16
3. RESPONSIVENESS (9 TO 12)

14
4. ASSURANCE (13 TO 16)

13
5. EMPATHY (17 TO 20)

66
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, s perceptions of
whether
customerthe service has been performed correctly, and not
criteria, are the major determinants of reliability. Customers of
provider-established
rely on the
the bank bank. Whenever
hesitate to they have a problem, the bank
in solving
shows it butinterest
sincere the services are not performed by a certain time
employees
as promised. should
The take this problem seriously and take steps to
remove this.
As score for Assurance is at second place after responsiveness, so the
customers of HDFC bank are very confident and feel safe while
the bank. Moreover
transacting with the employees of the bank have proved to
Employees are also educated enough to answer all the
be trustworthy.
questions.
The score of Tangibility dimension of service quality of HDFC bank is the
lowest. The service quality factor tangible is defined by
facilities
whether theandphysical
materials associated with the service are visually
bank. These
appealing at are
the all factors that customers notice before or upon
Customer
entering theexpectations
bank. regarding visual appealing of HDFC is
study I found
very high. Fromthatmy
Physical facilities and modern looking
sufficient
equipmentinare HDFC
not bank. Respondents were uncertain about
the reception desk employees.
neat appearance of So they should work on that and
gap.
try to fulfill the

According to my findings, the score of Empathy is not satisfactory but not

unsatisfactory also. HDFC bank is unable to give individual
customers
attention toand
its is unable to understand specific needs of its
bank has taken
customers. But steps
still to satisfy its customers by keeping
prompt
when
preference
to the
service,
services
and
its customers are
employees
andwill
always
be performed.
ready
keepingare willing
tointerest
their help
Employees
tothem.
help
best the
Overall
at at
customers
bank
heart. HDFC
give
operating hours convenient
and say
their
bank
responsiveness
In
customers
HDFC
the exact
bank,
dimension
first
timethe score
of service
of Responsiveness
qualityis
67is
highest
the highest.
so they are focusing son
 According to the customer perception, HDFC bank is highly
Customers are assured while transacting with the bank. The
responsive.
lower thandimension
reliability the first toisdimension. They feel that the bank is
individual attention
unable to give them and its equipments are not modern and
sufficient for the bank.
There is not much gap between all the dimensions, this shows
BANK thatisHDFC
a better service provider in all the dimensions i.e.
tangibility, responsiveness and empathy. As a result of which,
reliability, assurance,
satisfied with the
the customers are service offered by HDFC bank.

68
CONCLUSION

Based on the study conducted it can be concluded that

assurance
responsiveness,and reliability are the critical dimensions of service
bank
quality andofthey
HDFC are directly related to overall service quality. The
may delight
factors that customers tend to be concerned more with the
of the service,
intangible naturecommitment, attentiveness, friendliness, care,
The employees give prompt services, always are ready to
and courtesy.
the questions and are trustworthy. The main sources of
answer
to be cleanliness,
dissatisfaction up to date technology modern equipments,
appear
dressed
and neatly up employees. The Tangibility dimension of service
bank
quality is of
highly
HDFC disappointing and serious steps are needed to be
enhance
taken to this dimension. Customers of the bank are dissatisfied
empathy
with the dimension. To satisfy these customers, the
some attempts,
management cannoted
take earlier as recommendations.
The study brings about the areas which require urgent attention
of the employees, the management, and the policy makers of
These are areas in which customers are hugely dissatisfied with
the industry.
of
thethe banks against their expectation. This high degree of
services
resulting from the services received clearly questions the design
dissatisfaction
subsequent
of services or response of the bank employees. These limitations
to
arebetooavoided
seriousas these question the front-line people dealing
customers
with the and the approach of the management in taking
seriously.
customers
The management should understand the benefits of service
increased
quality. It customer
include satisfaction, improved customer retention,
of mouth,word
positive reduced staff turnover, decreased operating costs,
share,
enlarged increased
market profitability, and improved financial
performance. In the days of intense competition, superior
differentiator
customers.
its
efficiency.
competition,
service Thus,
Superior
is the leftgain
only improving
before
service
a sustainable
the service
quality
banks competitive
toenables
quality
attract,leads
aretain
firm
advantage,
toto
and
the partner
and
with ultimately,
differentiate
enhance
customer
and, the satisfaction
itself
to from
customer loyalty. 69
RECOMMENDATIONS

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

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

Responsiveness, again when associated with a well-trained staff

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

Intangibles please customers just as much as tangibles in the

People tend toindustry.
banking visit the same branch of a bank over and over
aagain.
location closethis
Usually, to their
is home or their workplace. It is natural
become comfortable and habituated to these branch banks, for
that customers
they develop
the same familiarity with a neighborhood supermarket or
reason
makes sense that
convenience store.bank
It employees would be encouraged to learn
regular customers,
to recognize these learn their names, and begin to identify their
requirements.
basic service

Learning to understand customers needs will allow bank associates to offer

enhanced services, perhaps lowering customersbanking costs and increasing
their investment potential. This could also open up the
profits
Modern
ones. Keeping
Iffor
the
equipments,
banks,
staff
theinside
bank
for when
new
with
is pleasant
improved
perceived
up-to-date
and
technology
aswell-informed,
technologically
more service
shouldand
inare
beanimportant
possibility of increased
customer
will,
and
replaced
aesthetically
environment,
pleasant
factors.
in effect,
with
oriented,
way
pleasing
then
the
become
tocustomer
old
they
“shop.”
a useful
satisfaction will70be high.
 The five-dimensional structure could possibly serve as a
framework for tracking a bank s service quality performance over time and
meaningful
comparing it against the performance of competitors. Items on
should be expanded if that is necessary for reliability.
some dimensions

Thus, the banking industries must continuously measure and

dimensions
improveinthese
order to gain customers loyalty .

71
BIBLIOGRAPHY

References

Kotler Philip, marketing management, (Pearson education, 12th

Malhotra
edition) K. Naresh, marketing research (An applied
(Prentice hallResearch
orientation), of India pvt. 5th edition)
design,

Zeithmal V. A., Grembler D.D., Bitner M.j., and Pandit A.:

Integrated customer Focus across the Firm” (4th Edition)
Service Marketing
M.K. Rampal : Service Marketing

Websites
www.hdfcbank.com
www.hdfcindia.com
www.wikipedia.org
www.marketresearch.com

72
 ANNEXURE
MANAGEMENT, conducting a survey on “SERVICE
QUESTIONNAIRE
QUALITY OF

Respected Sir/Madam
HDFC BANK”. The following statements relate to your
I am student of INSTITUTE OF
feelings about
 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 you prompt

service.

theEmployees
11. HDFC bank. Please
in the bank show the extent to which you
are always
willing
bank
believe to
hashelp
theyou.
HDFC feature described in the statement. I request
the
youoption
to v which in your opinion are believed to be true
12. Employees in the bank are never too .
busy to respond to your request.

Name:
13. The employees of the bank are
trustworthy.
Age:
Educational
14. The behavior Qualifications
of employees in the bank
instills confidence in you.

15. You feel safe in your transactions with

the bank.
QUESTIONS Strongly Disagree Neither Agree Strongly
Disagree agreeNor Agree
16. Employees in the bank have the disagree
knowledge to answer your questions.
1.HDFC bank has modern looking
equipment.
17. The bank gives you individual attention.

2.
18.The
Thebank's physical
bank has features
operating areconvenient
hours visually
appealing
to all its customers

3.
19.The
Thebank's reception
bank has deskinterests
your best employees are
at heart.
neat appearing.
20. The employees of the bank understand
4. When
as
appealing
5.
by
your
Materials
pamphlets
a certain
specific
the
at time,
associated
bank
the
needs.
or statements)
bank.
itpromises
doeswith
so.to
are
thedovisually
service
something
(such 73
74
75