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Summer Project Report

Study on process improvements of Transfer process In HDFC Bank





Department of Management
Birla Institute of Technology
Noida Campus


(Deemed University U/S of UGC Act, 1956)


This is to certify that the work presented in the project entitled “Study on process
improvements of Transfer process In HDFC Bank” in partial fulfillment of the
requirement for the award of degree of ‘Bachelor of Business Administration’ Birla
Institute of Technology, Mesra- Ranchi,, is an authentic work carried out under my
supervision and guidance.

To the best of my knowledge, the content of this project does not form a basis for the award
of any previous degree to anyone else.

Date: Mrs. Preeti Bajaj

Department of Management
Birla Institute of Technology
Noida (U.P)


The foregoing Project entitled “Study on process improvements of Transfer

process In HDFC Bank”, is hereby approved as a creditable study of research topic and
has been presented in satisfactory manner to
warrant its acceptance as prerequisite to the degree for which it has been submitted.

It is understood that by its approval, the undersigned do not necessarily endorse any
conclusion drawn or opinion expressed therein, but approve the project for the purpose for
which it is submitted.

Mrs Meenakshi Sharma Dr. S L Gupta

Co-ordinator- BBA Academic Coordinator


BIT- Noida


A task undertaken without offering prayers to almighty and talking blessings from the
elders is not a good beginning. Likewise the work completed without acknowledging the
assistance to those who were always by my sides to make my efforts fruitful in the task
left incomplete.

Special gratitude and appreciation goes to Mrs. Preety Bajaj Faculty Guide, for her
continuous support, guidance and motivation during the entire project.

Shantanu Dubey
BBA 4533/07
BBA Class of 2007-2010.


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 liberalisation of the Indian
Banking Industry in 1994. The bank was incorporated in August 1994 in the name of
'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank
commenced operations as a Scheduled Commercial Bank in January 1995.


HDFC 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 the 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.


HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build

sound customer franchises across distinct businesses so as to be the preferred
provider of banking services for target retail and wholesale customer segments, and
to achieve healthy growth in profitability, consistent with the bank's risk appetite. The
bank is committed to maintain the highest level of ethical standards, professional
integrity, corporate governance and regulatory compliance. HDFC Bank's business
philosophy is based on four core values - Operational Excellence, Customer Focus,
Product Leadership and People.


The authorized capital of HDFC Bank is Rs550 crore (Rs5.5 billion). The paid-up
capital is Rs424.6 crore (Rs.4.2 billion). The HDFC Group holds 19.4% of the bank's
equity and about 17.6% of the equity is held by the ADS Depository (in respect of the
bank's American Depository Shares (ADS) Issue). Roughly 28% of the equity is held
by Foreign Institutional Investors (FIIs) and the bank has about 570,000
shareholders. The shares are listed on the Stock Exchange, Mumbai and the
National Stock Exchange. The bank's American Depository Shares are listed on the
New York Stock Exchange (NYSE) under the symbol 'HDB'.


In a milestone transaction in the Indian banking industry, Times Bank Limited

(another new private sector bank promoted by Bennett, Coleman & Co./Times
Group) was merged with HDFC Bank Ltd., effective February 26, 2000. As per the
scheme of amalgamation approved by the shareholders of both banks and the
Reserve Bank of India, shareholders of Times Bank received 1 share of HDFC Bank
for every 5.75 shares of Times Bank. The acquisition added significant value to
HDFC Bank in terms of increased branch network, expanded geographic reach,
enhanced customer base, skilled manpower and the opportunity to cross-sell and
leverage alternative delivery channels.


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.


Mr. Jagdish Capoor took over as the bank's Chairman in July 2001. Prior to this, Mr.
Capoor was a Deputy Governor of the Reserve Bank of India.
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
The Bank's Board of Directors is composed of eminent individuals with a wealth of
experience in public policy, administration, industry and commercial banking. Senior
executives representing HDFC are also on the Board.

Senior banking professionals with substantial experience in India and abroad head
various businesses and functions and report to the Managing Director. Given the
professional expertise of the management team and the overall focus on recruiting
and retaining the best talent in the industry, the bank believes that its people are a
significant competitive strength.


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 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.


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 services, cash management, etc. The bank is also a
leading provider of structured solutions, which combine cash management
services with vendor and distributor finance for facilitating superior supply chain
management for its corporate customers. Based on its superior product
delivery / service levels and strong customer orientation, the Bank has made
significant inroads into the banking consortia of a number of leading Indian
corporates including multinationals, companies from the domestic business
houses and prime public sector companies. It is recognised as a leading
provider of cash management and transactional banking solutions to corporate
customers, mutual funds, stock exchange members and banks.
Retail Banking Services
The objective of the Retail Bank is to provide its target market customers a full
range of financial products and banking services, giving the customer a one-stop
window for all his/her banking requirements. The products are backed by world-

class service and delivered to customers through the growing branch network,
as well as through alternative delivery channels like ATMs, Phone Banking,
NetBanking and Mobile Banking.

The HDFC Bank Preferred program for high net worth individuals, the HDFC
Bank Plus and the Investment Advisory Services programs have been designed
keeping in mind needs of customers who seek distinct financial solutions,
information and advice on various investment avenues. The Bank also has a
wide array of retail loan products including Auto Loans, Loans against
marketable securities, Personal Loans and Loans for Two-wheelers. It is also a
leading provider of Depository Participant (DP) services for retail customers,
providing customers the facility to hold their investments in electronic form.

HDFC Bank was the first bank in India to launch an International Debit Card in
association with VISA (VISA Electron) and issues the Mastercard Maestro debit
card as well. The Bank launched its credit card business in late 2001. By March
2009, the bank had a total card base (debit and credit cards) of over 13 million.
The Bank is also one of the leading players in the “merchant acquiring” business
with over 70,000 Point-of-sale (POS) terminals for debit / credit cards
acceptance at merchant establishments. The Bank is well positioned as a leader
in various net based B2C opportunities including a wide range of internet
banking services for Fixed Deposits, Loans, Bill Payments, etc.
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.


• 2007

Business Today-Monitor Group One of India's "Most Innovative

survey Companies".

Financial Express-Ernst & Young Best Bank Award in the Private

Award Sector category.

Global HR Excellence Awards - ‘Employer Brand of the Year

Asia Pacific HRM Congress: 2007-2008’-Award- First Runner-

Business Today ‘Best Bank Award’.

Dun & Bradstreet – American ‘Corporate Best Bank’-Award.
Express Corporate Best Bank
Award 2007

The Bombay Stock Exchange and ‘Best Corporate Social

Nasscom Foundation's Business Responsibility Practice’ Award.
for Social Responsibility Awards

Outlook Money & NDTV Profit Best Bank Award in the Private
sector category.

The Asian Banker Excellence in Best Retail Bank in India.

Retail Financial Services Awards

Asian Banker Managing Director Aditya Puri

won the Leadership
achievement Award for India.

• 2006

Business Today Best Bank in India.

Forbes Magazine One of Asia Pacific's Best 50


Business world Best listed Bank of India.

The Asset Magazine's Triple A Best Domestic Bank.

Country Awards

Asiamoney Awards Best Local Cash Management

Bank in Large and Medium

Euromoney Awards "Best Bank" in India.

• 2005

Asiamoney Awards Best Domestic Commercial

Asiamoney Awards Best Cash Management Bank -

India .

The Asian Banker Excellence Retail Banking Risk

Management Award in India.

Hong Kong-based Finance Asia Best Bank in India


Economic Times Awards "Company of the Year" Award

for Corporate Excellence.

The Asset Triple A Country Awards Best Domestic Bank in India

Region - 2005

The Business Today-KPMG Best Local Cash Management

Survey Bank in India US$11-100m -

The Business Today-KPMG "Best Bank in India" for the

Survey third consecutive year in 2005.

Economic Times - Avaya Global "Most Customer Responsive

Connect Customer Company - Banking and
Responsiveness Awards Financial Services - 2005

• 2004

Asiamoney Awards Best Local Cash Management

Bank in India US$11-100m

Asiamoney Awards Best Local Cash Management

Bank in India >US$501m

Asiamoney Awards Best Local Cash Management

Bank in India 1989-2004 (poll of

Asiamoney Awards Best Overall Domestic Trade

Finance Services in India - 2004

Asiamoney Awards Most Improved company for

Best Management Practices in
India - 2004

Business World One of India's Most Respected
Companies - 2004

Forbes Global Best Under a Billion, 100 Best

Smaller Size Enterprises in
Asia/Pacific and Europe - 2004

Asian Banker Awards Operational Excellence in Retail

Financial Services - 2004

The Asset Triple A Country Best Domestic Bank in India -

Awards 2004


Job rotation is an approach to management development where an individual is

moved through a schedule of assignments designed to give him or her a breadth of
exposure to the entire operation.

Job rotation is also practiced to allow qualified employees to gain more insights into
the processes of a company, and to reduce boredom and increase job satisfaction
through job variation.

At the senior management levels, job rotation - frequently referred to as

management rotation, is tightly linked with succession planning - developing a pool
of people capable of stepping into an existing job. Here the goal is to provide
learning experiences which facilitate changes in thinking and perspective equivalent
to the "horizon" of the level of the succession planning.

Importance of job rotation

Job rotation is the surest way of keeping the employee away from complacency
and boredom of routine. It is difficult for an employee to sustain his interest in a
given job for any substantial length of time as humans have the tendency of
outgrowing their jobs through the learning and experience that they gain over a
period of time. Stimulating human mind through diversity of challenges is a sure
way to bring to forefront its creative instincts and in taking the individual and
organizational performance to a higher plane. This is where job rotation can prove
to be a handy tool.

Potential of job rotation

A well planned job rotation programme in an organization has immense potential of

positive impact on job satisfaction, engagement of people and finally on retention of

people. Few of the outcomes of job rotation with respect to the individual are:

• Job enrichment
• Overall development
• Intrinsic motivation to perform caused by newer challenges
• Career development

Where as for an organization, the benefits could include some or all of the following:

• Leadership development
• Aligning competencies with organizational requirements
• Lower attrition rates
• Performance improvement driven by unique view points of new people

Job Rotation in HDFC Bank

In Hdfc bnk all employees are involved in the job rotation schedule. In HDFC Bank th
staff gets rotated in every 6 months and the officers get rotated in every 3 years.

The flexibility consideration is given to those employees who have physical difficulty,
for such employee there is no job rotation eg: Deaf & dumb, or physically

Job Rotation in Indian Overseas Bank

In IOB all the employees involved in the job rotation schedule, the staff, clerks &
officers. The staff and clerks have internal rotation and officers get rotation to other

As per the Bank staff rule the staff gets rotated in every 6 months and the officers get
rotated in every three years. The flexibility consideration is given to those employees
who have physical difficulty, for such employee there is no job rotation eg: Deaf &
dumb, or physically handicapped.

The employees involved in the rotation schedule for other individual to their talent
and to avoid malpractices and frauds. Meetings are held to know the employee which
firther position he will take place to determine interest and gain involvement.
According to the employee performance & response towards his job on that basis the
jobs are rotated.

Job rotation In RBI

In RBI the job rotation is mainly concerned with the officers. The officers in RBI get
their job rotated in every year. For such job rotation the employees who are going to
get rotated meetings are hed so that the officers get to know their future roles.

Job transfer

In business organizations employees are shifted from one post to another, from one
department to another etc. This is called as job transfer of employees. Such transfers
are quite common in case banks, govt, department, manufacturing units etc.

A transfer is defined as “a change in job whre the new job is substantially

equal to the old in term of pay, status, responsibilities”

Transfer of employee do create some resentment from the concerned employees.

This is natural as transfer may create certain personal and family problems. In
addition, an employee has to adjust with new situation. Finally it may be pointed out
the transfer is neither promotion or demotion but merely a horizontal and lateral
movement of an employee from one job to another.

Reasons for job transfer

1. Variation in volume of work

2. Providing training to employee
3. Rectification of poor placement
4. Satisfied the personal need of employee
5. Meeting mutual need of employee
6. Meeting organizational needs
7. Solution to poor performance
8. Avoid fatigue and monotony
9. Removing poor personal relations
10. Providing relief and o punish employees

Principles of Sound Transfer policy

Company management must frame a policy on transfers and apply it to all transfer
instead of treating each transfer on its own merits. Such a policy must be based on
the following principles of transfers:

1. Necessary Transfer: Transfer should be only done when required. The basis of
transfer should be decided properly and should be cleared to all the
2. Responsibility of transfers: Responsibility of initiating and approving transfer
should be clearly defined and properly located. The authority to handle
transfer should be decided clearly. The best course is to centralize the
authority handling transfers and make the personnel/HR department
responsible for all transfers

3. Fair transfer: Transfer should not be made as a punishment or as a revenge
on an employee or simply to trouble an employee and his family members.
4. Consideration of employees: Transfer should be done after taking concerned
employee into confidence and also after explaining how transfer is in the best
interest of the organization and employee.
5. Interest of the Organization: Alll transfers should be made in the best interest
of the organization. In addition, there should be sound justification in the case
of all transfers made. The management shoul be able to prove its objectivity
and impartiality as regards transfer made
6. Sound Transfer Policy: Management should prepare a sound transfer policy
for a long period. It should be given wide publicity for the information of the
employees. The interest of organization should not be forgotten while framing
the policy of transfers.
7. Employees View: n employee should be given an opportunity to appeal to an
appropriate authority with full opportunity to an employee to express his views.
8. Request Transfer: Request transfer on the basis of illness or family problem
should be considered sympathetically and granted promptly.

Types of transfer.

Versatility Transfers: The objective of these transfers is to increase the versatility of

the employee by shifting it from one job to another. In this way, the employee is
provided a varied and broader job experience. This helps the employee through job
enrichment. It can also help him to get prepared for future promotions, besides, it
helps the organization also as enrichment of employee would make him not only
more effective but also ready for higher openings.

Jon Transfer In Bank Of Baroda.

In bank of baroda there is a different policy for clerks and officers, Clerks are
Transferred every 5 years from on branch to another branch, on the other hand
officers are transferred within the time span of every three years from one branch to
another and also to various zones(Zone indicates North, east, West, South zones of



To know the effects of transfers in the employees & also on the performance and
effectiveness and efficiency in the work field and also the effect on the organization.
And also on process improvement.


• To study the transfer process.

• To study the effects on employees.

• To increase the employee welfare and satisfaction of the bank by suggesting

improvements in the process.


All the findings and conclusions obtained are based on the survey done in the
working area within the time limit. I tried to select the sample representative of the
whole group during my job training. I have collected data from people linked with
different profession at Delhi.

Preliminary Investigation: In which data on the situation surrounding the problems
shall be gathered to arrive at
• The correct definition of the problem.
• An understanding of its environment.
Exploratory Study: To determine the approximate area where the problem lies.

Research was initiated by examining the secondary data to gain insight into the

problem. By analyzing the secondary data, the study aim is to explore the short
comings of the present system and primary data will help to validate the analysis of
secondary data besides on unrevealing the areas which calls for improvement.


The data for this research project has been collected through self Administration. Due
to time limitation and other constraints direct personal interview method &
Questionaire is used.

1. Secondary Data: It was collected from internal sources. The secondary data
was collected on the basis of organizational file, official records, news papers,
magazines, management books, preserved information in the company’s
database and website of the company.

2. Primary data: All the people from different profession were personally visited
and interviewed. They were the main source of Primary data. The method of
collection of primary data was direct personal interview


1) The employee gives the application of transfer to immediate superior.

2) The Supervisor gets the transfer request form duly filled by the employee and
forward it to the HR dept.

3) The HR dept seeks conformation from the HR head of the different department
or the location where the employee needs to be transferred.

4) After Both the HR of the dept agrees and the vacancy is there the the HR head
sends the transfer request form to the functional head for the approval of the

5) After getting the transfer approval from the functional head the transfer orders
are being issued and a tracker is initiated for the concerned employee.

6) The supervisor of the employee is informed and he informs the concerned


7) The transfer takes place

Interpretation & Analysis

Your Age: ____________________

Most Of the respondents were from the age group 20- 35 years

Education Qualification.
• Graduate 34%
• Post graduate 66%

Marital Status.

• Married 65%
• Single 35%

Majority of the employees are married and have a family to support.

Number Of years you are working with HDFC Bank.
• Less than five year’s 22%
• More than five year’s 78%

NumberOf yearsyouare workingwith


Less Than 5 years

More Than %

Majority of the employees have been associated with HDFC bank for more than
5 years, this means that atleast once they have gone through the transfe
process, and as per the personal interviews they didn’t face any problem in
regard of there transfers.

Your annual Income.
• <than 2 lack 5%
• Between 2 to 5 lack 25%
• Between 5 to 8 lack 50%
• >than 8 lack 20%

HDFC Bank is Having different pay scale levels and majority of the employees
are working in the payscale of 5-8 lacs per annum.

Are you a Satisfied With the prevailing transfer process in the bank?
• Yes 76%
• No 24%

As 76% of the people working with HDFC bank are satisfied with the prevailing
transfer process, but on the other hand 24% of the respondents are not
satisfied, which means there are some problems that the employees face
regarding transfer

What is your perception about the inter department job transfers?
• Lucrative 45%
• Not lucrative 40%
• No idea 15%

This survey had a mixed opinion regarding the attractiveness of the proposal
of working in different department as 45% of the respondents find the inter
department job transfer lucrative, where as nearing number i.e 40% of the
people found it Non Lucrative or unattractive. And 15% of the respondents
preferred not to say anything about it.

Are you Comfortable working in any department due to transfer?
• Yes 60%

• No 20%

• Cant Say 20%

Majority of the respondents 60% are comfortable in working in any department

due to transfer, this shown that HDFC bank is taking care of the welfare and the
after transfer process of the employees very well though 20% of the
respondents don’t find themselves comfortable to work in any and every
department, and 20% remained unavailable for this question.

Do You Consider Job Rotation Good For an Organisation?
• Yes 78%
• No 22%

Majority of the respondents i.e. 78% Find and support the fact that Job rotation
is good for the organisation. This means that the employees working with
HDFC Bank are willing to accept transfers.

Are you satisfied with the transfer request format of HDFC bank?
• Yes 62%
• No 48%

HDFC Bank transfer request form is a form that iis used by the employees to
request transfer fom the HR department, it has many questions out of which
many are irrelevant, but still 62% of the respondents find it satisfactory, but
still there are 42% of the respondents are not satisfied, which shows there is a
great scope of improvement in the transfer process of the bank.

During the transfer process have you experienced any trouble or any kind of

YES 22%
NO 88%

After the transfer takes place the employees are given a joining time and some
benefits like if they are being transferred to some another city then they can

get travelling and transportation allowances. In here majority of the employees
are satisfied and claim that they didn’t faced any trouble in the complete
process, on the other hand a few suffered some problems which unfortunately
they didn’t mentioned due to the Organisation guidelines. So again there is a
scope of improvements in the prevailing transfer process of the organisation.


Hdfc bank, the banking arm of HDFC is expected to go on stream. The bank already
has good numbers of employees on board and is recruiting personal banker heavily
to take the headcount to many more. It is in brim of increasing its employees.

Through this project this can be concluded that the employees in the organization
are in favour of transfers and thinking of continuing ther services with the bank for a
longer period The employees of he organization and management are happy with
the working of the organization and also for the welfare and care provided to them by
the management
The employees have a mixed opinion about the transfer process that is
prevailing in the organization, but out of which the complete analysis shows
that 65% of the employees are satisfied with the process, but still there are a
good 35% of the employees who have queries and concerns regarding the
transfer process, Hence there is a scope of improvemet in the transfer process
of the Bank.


1. The organisation should remove some of the irrelevant questions from its
2. The organization should try to find out the excat reason from the employee for
the request of their transfer.
3. There should be periodic transfers of the employees to give them more
exposure in the bank and its operations.
4. The Transfers should be taken as a healthy policy by the employees in the
organisation and not as a mode of punishment.

Every work has its own limitation. Limitations are extent to which the process should
not exceed. Limitations of this project are:-

• The project was constrained by time limit of two months.

• Mindset of people may very depending upon their age, gender, income
• Getting appointment from the concern person was very difficult.
• People mind set about the survey was an obstacle in acquiring
complete information & positive interaction.
• Respondents were very busy in their schedule. So it was very time
consuming for them to answer all the questions properly.


Dear Sir/Madam,

I am a student of Birla Instt Of Technology, Mesra Ranchi and presently doing

a project on “Process Improvement In Transfer Process”. I request you to kindly
fill the questionnaire below and I assure you that the data generated shall be kept

Name: ………………………………………………………………………..
Address: ……………………………………………………………………..
Contact No :®………………( O)……………… (M)………………………
City: ………...............Pin: ………………….State: ……………………….

1. Your Age: ____________________

2. Education Qualification.
• Graduate □
• Post graduate □

3. Marital Status.
• Married □
• Single □
No. of Children: __________

4. Number Of years you are working with HDFC Bank.

• Less than five year’s □
• More than five year’s □

5. Designation:………………………………………..

6. Your annual Income.

• <than 2 lack □
• Between 2 to 5 lack □
• Between 5 to 8 lack □
• >than 8 lack □

7. Are you a Satisfied With the prevailing transfer process in the bank?
• Yes □
• No □

8. What is your perception about the inter department job transfers?

• Lucrative □
• Not lucrative □
• No idea □

9. Are you Comfortable working in any department due to transfer?

• Yes

• No

• Cant Say

10. Do You Consider Job Rotation Good For an Organisation?
• Yes □
• No □
11. Are you satisfied with the transfer request format of HDFC bank?
• Yes □
• No □
During the transfer process have you experienced any trouble or any kind of


Place: Signature