A PROJECT REPORT ON ANALYSING MARKET COMPETITION AND SATISFACTION AMONG CUSTOMERS OF HDFC BANK IN PASAN AREA AT HDFC BANK

(IN PASAN BANER, PUNE)

By YOGESH SAHU UNDER THE GUIDENCE OF MR. SANTOSH PALLEWAR

SUBMITTED TO INDIRA INSTITUTE OF MANAGEMENT,PUNE IN PARTIAL FUFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF POST GRADUATE DEPLOMA IN MANAGEMENT 2010-12

FOR INDIRA INSTITUTE IN MANAGEMENT, PUNE

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Acknowledgement

The summer training in HDFC Bank has been a truly remarkable experience. The experience gained during 8 weeks of training period have been quite enriching and the intensive exposure to market environment would prove beneficial in the long run as well as in the outlet of planning, building and shaping my career in future. It gives me immense pleasure in acknowledging the valuable guidance extended to me by various person of HDFC in successful completion of this project I am very thankful to Professor Santosh Pallewar, my internal project guide for having equipped me with the skills which contributed a great deal in the successful completion of the project. At last, but not the least, I would like to thank the customers to cooperate with me in giving me through and valuable information for the project.

YOGESH SAHU IIMP, PUNE (2010-2012)

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Executive Summary
Project Title: ANALYSING MARKET COMPETITION AND SATISFACTION AMONG CUSTOMERS OF HDFC BANK IN PASAN AREA

INDUSTRY OVERVIEW
The project was carried out for segmenting the market for saving Account of HDFC Bank. HDFC Bank was established in the year 1994, they are old player in banking sector. The bank has two principle client segments customer and asset management. The bank follows values such as Integrity, teamwork, respect, professionalism, & Mission. The segment of bank we are considering here is- Retail banking. The product which I have chosen for research is Saving Accounts. This research helps us in finding out type of customer who is using HDFC saving account. This also helps us in finding out customers view regarding the product and Services offered by the HDFC bank and also identifying the market potential of the product offered by the HDFC bank.

SIP DETAILS
I completed my summer internship from HDFC (pasan-baner link road). Marketing manager of HDFC assigned me to sale saving account in pasan-baner link road and my objective are Finding the market for saving account of HDFC Bank. To complete my SIP , I selected the title Analyzing market competition and satisfaction of among customers of HDFC Bank in pasan area and surveyed 450 persons.

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The topic plays an information role in providing knowledge about different people, their needs and their status .It also gives a brief knowledge how a bank works is there to establish a relation with the individual.

SIP OBJECTIVES:
To find out the level of satisfaction among saving account holders of HDFC Bank. To understand perception about HDFC products and services among customers in pasan.

RESEARCH METHODOLOGY RESEARCH DESIGN: 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. 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 UNIT: Different professionals Chartered Accountants, Tax Consultants, Lawyers, Business Man, Professionals and House Wives of Pune. Sample Technique: Random Sampling. Research Instrument: Structured Questionnaire. Contact Method: Personal Interview.

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SAMPLE SIZE: My sample size for this project was 450 respondents. Since it was not possible to cover the whole universe in the available time period, it was necessary for me to take a sample size of 450 respondents. FINDINGS The maximum no. of customer of HDFC Bank is of age group of 30 to 35 years and above. There is a market of age group of 18 to 23 year which is not targeted by the bank. The maximum no. of customer of HDFC Bank is businessman. People who are working with public sector is in negligible number as a customer of the HDFC Bank. The people who are having a/c in HDFC bank are satisfied with the product and services of the bank , and they believe that the same are lucrative . here out of 150 customer, 104 customer believe that the product is lucrative . The people who dont have a/c in HDFC bank even dont know about the product and services of the bank. Here in this survey 179 out of 300 customers dont have any idea about the banks product, while 82 people dont have proper knowledge about it.

RECOMMENDATION
The bank should also target the people of age group of 18 to 23 (teenager youths) because a large no. of population is there in that age group which are untargeted. Bank should have different product and services for them as their income level is not very high. With different products and services bank should also target the people who are working with public sector.

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Table Of Contents
S.N.
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

CONTENTS
INTRODUCTION INDUSTRY OVERVIEW COMPANY OVERVIEW PRODUCT AND SERVICES OBJECTIVES RESEARCH METHODOLOGY DATA ANALYSIS CONCLUSION AND FINDING RECOMMENDATION LIMITATION ANEXURE BIBLIOGRAPHY

PAGE NO.
7-8 9-13 14-24 25-30 31-32 33-36 37-50 51-53 54 55 56-58 60

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CHAPTER 1 INTRODUCTION

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INTRODUCTION
ANALYSING MARKET COMPETITION AND SATISFACTION AMONG

CUSTOMERS OF HDFC BANK IN PASAN AREA At HDFC Bank, I was assigned with the topic as Market segmentation and selling of Savings Accounts of HDFC Bank for my project work. I joined the company as a management trainee. The selection of the topic was to know whichever segment is still not targeted by the HDFC Bank and, the customer perception towards HDFC Bank and about its product and services.

REASON FOR SELECTION OF THIS TOPIC:

The financial sector is one of the booming and increasing sectors in India. To know the preferences of the todays customers is very important, because as they are getting literate and start earning money, their need changes very rapidly. Many customers segments are even not aware of the products and services of the bank, so it is important to make them aware about it.

IMPORTANCE TO THE COMPANY:

The ultimate purpose of giving me this topic was to know about the customers perceptions about the different products of the bank, how these products can attract them and how the company can generate maximum profit. Company wants to know the segments where the product of HDFC bank is not being effective. They also want to know about the different behavior of the customer.
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LEARNING FROM THE STUDY:

Different products and services provided by the bank. Different segment of HDFC Bank Customers perception about the different products. The brand image of the bank. How to communicate with the customers. Different techniques of dealing with the customers. How to convince and convert a customer into a real customer.

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CHAPTER-2 INDUSTRY OVERVIEW

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HISTORY OF BANKING IN INDIA The first bank in India, though conservative, was established in 1786. From 1786 till today, for centuries, bank has played an important role in the financial system of any economy. That vital role continues even today although the forms of banking have changed with the changing needs of the economies. Banking in its crude form is an age-old phenomenon and its invention preceded that of coinage. As new and more sophisticated instruments of currency evolved, so did banking. It evolved as business expanded and barter system gave way to money, which needed safe deposited. In its simple from, it originated from temple and royal palaces around 1000 B.C in Babylon, as the strongest faith of people was in the places of worship and royal houses as safe places for keeping money and valuables. The practice of depositing personal valuables at these places, which were also functioning as treasuries against a receipt, was perhaps the earliest form of banking. When coins made of precious metal like gold and silver emerged as commonly accepted form of wealth. Lending activity at an interest began. Goldsmiths were the initial banker and their receipts for money received-grunted payments or goldsmith receipts were the earliest fans of bank instruments. Revilpout, a French writer mentions about banks and bank notes in Babylon in 600. The journey of Indian Banking System can be segregated into three distinct phases. They are as mention below: Early phase from 1786 to 1969 of Indian Banks Nationalization of Indian banks and up to 1991 prior to Indian Financial & Banking sector Reforms after 1991.

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PHASE I The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) As independent units and called it presidency Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks, mostly Europeans shareholders. Reserve Bank of India came in 1935. Reserve Bank of India was vested with Extensive powers for the supervision in India as the central banking.

PHASE II Government took major steps in this Indian Banking Sector Reform after independence. In 1955, it nationalizes Imperial Bank of India with extensive banking facilities on a large scale especially in rural and semi- urban area. It formed State Bank of act as the principal agent of RBI and handle banking transactions Of the Union and State governments all over the country. The following are steps taken by Government of the India to regulate Banking institutions in the country: 1949: Enactment of banking regulation Act. 1955: Nationalization of State Bank of India. 1959: Nationalization of SBI subsidiaries. 1969: Nationalization of 14 major banks. 1971: Creation of credit guarantee corporation. 1975: Creation of regional rural banks. 1980: Nationalization of seven banks with deposits over 200 Crore.
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PHASE III This phase has introduced many more products and facilities in the banking sector in its Reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his name which worked for the liberalizations of banking practices. The country is flooded with foreign banks and their ATM stations Efforts are being put to give a satisfactory service to customers. Phone banking and net banking is introduced. The entire system became more convenient and swift. Time is given more importance than money.

INDUSTRY BACKGROUND: THE Indian Banking sector consists of public sectors, private sectors and foreign banks apart from smaller regional cooperative banks .public sectors banks dominate the banking sector in terms of market share but are hindered by legacy factors as well as services and quality issues private banks is constrained by the size factors as they are basically NICHE players .foreign banks have limited branch networks and capital commitment. HDFC bank is a part of HDFC group limited HDFC registered office is located at senpati BapatMarg ,lower parel ,Mumbai .HDFC bank started its operation in the year 1994,there is a saying opportunity knocks the door only once .to work with MNC is anybody s dreams come true. HDFC bank today is one of the leading banks in the private sectors .the branch offers services such as 24 hours banking through ATMs ,internet banking ,phone banking ,mobile banking ,etc it uses technology as a vehicle to open up new frontiers of internet banking , thus making its Operation location independent ,it uses all the modernized computerized system and equipment and thus cater to most part of the country.
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The bank is one of them ,which had grown at rapid pace and had scales new height and leadership position in terms of clients ,products, talents reach and capital all vital ingredients for continuous growth and profitability. The bank was selected as the best bank in India by the business world magazines for 4th consecutive year ,Forbes magazines named the bank :best listed bank in India at the assets magazines AAA country awards .today the bank starts at fare front of the Indian financial sector by compilers the best retail , corporate and treasury product with sound risk, human resource and state of the art technology support HDFC bank has more than 1725 branches in more than 780 cities and over more than 50 ATMs across the country. And so thus it caters to most of the parts of the country .the bank uses advance software and system to provide services like any where banking and ATM connectivity .it also offers international banking services of which some of them are connected to swift network.

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CHAPTER-3 COMPANY OVERVIEW

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ORIGIN OF THE ORGANIZATION:Housing Development Finance Corporation Limited, more popularly known as HDFC Bank Ltd, was established in the year 1994, As a part of the liberalization of the Indian Banking Industry by Reserve Bank of India (RBI). It was one of the first banks to receive an 'in principle' approval from RBI, for setting up a bank in the private sector. The bank was incorporated with the name 'HDFC Bank Limited', with its registered office in Mumbai. The following year, it started its operations as a Scheduled Commercial Bank. HDFC Bank Limited. The Group's principal activities are to provide banking and other financial BANK. The Group operates through four segments: Treasury, Retail Banking,

Wholesale Banking and Other Banking Business. The Treasury BANK segment consists of net interest earnings on investments portfolio of the bank and gains or losses on investment operations. The Retail Banking segment serves retail customers through a branch network and other delivery channels. This segment raises deposits from customers and makes loans and provides advisory BANK to customers. The Wholesale Banking segment provides loans and transaction BANK to corporate and institutional customers. The Other Banking Operations segment provides BANK relating to credit cards, debit cards, third party product distribution and primary dealership business and other associated costs. The Bank was incorporated on30th August 1994. A new private sector Bank promoted by housing Development Corporation Ltd. (HDFC), a premier housing finance company. The bank is the first of its kind to receive an in-principle approval from the RBI for establishment of a bank in the private sector.

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Certificate of Commencement of Business was received on10th October 1994 from RBI. The Bank transacts both traditional commercial banking as well as investment banking. HDFC, the promoter of the bank has entered into an agreement with National West minister Bank Pc. and its subsidiaries (Nat west Group) for subscribing 20% of the banks issued capital and providing technical assistance in relation to the banks proposed banking business.

Organizational structure Each team lead has a team comprising only of both senior as well as junior market research analyst who aid the team lead in the entire market research process as it has been discussed previously. This is the basic organizational structure followed by HDFC BANK

Operations

Treasury

Corporate banking

Retail banking

Savings
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Current

Salary

HDFC BANK
Premium Bank Premium Services Premium Charges

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995.

Retail Banking

Wholesale Banking

Treasury

Business Segments of HDFC

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BUSINESSES
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 Service The Bank's target market ranges from large, blue-chip manufacturing companies in the Indian corporate to small & mid-sized corporate 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 corporate including multinationals, companies from the domestic business houses and prime public sector companies. It is recognized as a leading provider of cash management and transactional banking solutions to corporate customers, mutual funds, stock exchange members and banks.

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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, Net Banking 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.

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 liberalization of the financial markets in India, corporate 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.

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Promoters
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.

Capital Structure
As on 30th June, 2010 the authorized share capital of the Bank is Rs. 550 crore. The paid-up capital as on said date is Rs. 459,69,07,030/- (45,96,90,703 equity shares of Rs. 10/- each). The HDFC Group holds 23.63 % of the Bank's equity and about 17.05 % of the equity is held by the ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue). 27.45% of the equity is held by Foreign Institutional Investors (FIIs) and the Bank has about 4,33,078shareholders. The shares are listed on the Bombay Stock Exchange Limited and the National Stock Exchange of India Limited. The Bank's American Depository Shares (ADS) are listed on the New York Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's Global Depository Receipts (GDRs) are listed on Luxembourg Stock Exchange under ISIN No US40415F2002

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CBoP and Times Bank Amalgamation

On May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC Bank was formally approved by Reserve Bank of India to complete the statutory and regulatory approval process. As per the scheme of amalgamation, shareholders of CBoP received 1 share of HDFC Bank for every 29 shares of CBoP. The merged entity will have a strong deposit base of around Rs. 1,22,000crore and net advances of around Rs. 89,000 crore. The balance sheet size of the combined entity would be over Rs. 1,63,000crore. The amalgamation added significant value to HDFC Bank in terms of increased branch network, geographic reach, and customer base, and a bigger pool of skilled manpower.

Distribution Network
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of 2000 branches spread in 996 cities across India. All branches are linked on an online real-time basis. Customers in over 500 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
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and

active

member

base.

The Bank also has 5,998 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.

CSR 2010 Details of HDFC Bank Ltd.

CSR Areas 1. Community Welfare 2. Education 3. Environment 4. Poverty Eradication 5. Vocational Training 6. Othersa. b. c. Environmental Responsibility Employee Engagement Community Initiatives

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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. AdityaPuri, 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.

The Bank has prioritized its engagement in technology and the internet as one of its key goals
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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.

Ratings
The Bank has its deposit programs rated by two rating agencies - Credit Analysis & Research Limited (CARE) and Fitch Ratings India Private Limited. The Bank's Fixed Deposit programme has been rated 'CARE AAA (FD)' [Triple A] by CARE, which represents instruments considered to be "of the best quality, carrying negligible investment risk". CARE has also rated the bank's Certificate of Deposit (CD) programme "PR 1+" which represents "superior capacity for repayment of short term promissory obligations". Fitch Ratings India Pvt. Ltd. (100% subsidiary of Fitch Inc.) has assigned the "AAA (ind)" rating to the Bank's deposit programme, with the outlook

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CHAPTER-4 PRODUCTS & SERVICES

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PREMIUM SAVING ACCOUNT HDFC Premium Banking is especially for high net income people i.e. anybody earning more than 10 lakhs annually .it is an extension of saving account. Premium Banking is divided into three major categories.

HDFC Bank Imperia Banking -: HDFC Bank Imperia Premium Banking programme is designed for the royalty of today - you. It seeks to enhance the exclusivity that you are accustomed to and pampers you with services that other can only dream about. Be it a dedicated Client Relationship Manager, customized investment advisory or exclusive privileges, Imperia takes care of every little detail to ensure a banking experience like no other.

HDFC Bank Preferred Banking-: HDFC bank preferred banking is an exclusive banking, where customers will never again have to wait to be served. With HDFC Bank Preferred Programme, customer comfort always comes first. Ideal for seasoned professionals or businessmen, this programme will provide customers with a banker dedicated to take care of all your banking and investment needs. It also means you get preferential rates on various banking products and other exclusive benefits.

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HDFC Bank Classic Banking -: HDFC Bank Classic Banking experience banking beyond the ordinary,. Becoming an HDFC Bank Classic customer entitles customers to a host of benefits, including a bouquet of preferentially priced products and specialized Investment solutions. To ensure that customers make of all these offering , customers are assigned a PERSONAL BANKER who will be the one point contact for all their banking needs

SIMPLE SAVING ACCOUNTS-: Banking should be effortless. With HDFC Bank, the efforts are rewarding. No matter what a customer's need and occupational status, Whether you're employed in a company and need a simple Savings account or run your own business and require a robust banking partner, HDFC Bank not only has the perfect solution for the customer, but also can recommend products that can augment planning for the future.

SAVING MAX-: Savings Max account, loaded with maximum benefits to make customers banking experience a pleasure. By maintaining an average quarterly balance of just Rs. 25,000/-.

Features & Benefits FREE GOLD DEBIT CARD Free Payable-at-Par (PAP) chequebook, without any usage charges up to a limit of Rs. 2 lac per month.

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 Self/Third Party Cash Deposit/Withdrawal at non-home branches, up to Rs 50,000/- per day free. Free Net Banking, Phone Banking & Mobile Banking. Optional "Money Maximize" Insurance benefits up to 1 lac per annum.

SAVING REGULAR ACCOUNT-: An easy-to-operate savings account that allows you to issue cheques, draw Demand Drafts and withdraw cash. Check up on your balances from the comfort of your home or office through Net Banking, Phone Banking and Mobile Banking. . By maintaining an average quarterly balance of just Rs. 10,000/-.Need money urgently? Withdraw cash from any of the 4,393 ATM centers spread across the country.

FEATURES & BENEFITS Wide network of branches and over thousand ATMs to meet all your banking needs no matter where you are located. Bank conveniently with facilities like Net Banking and Mobile Banking- check your account balance, pay utility bills or stop cheque payment, through SMS. Avail of facilities like Safe Deposit Locker, Sweep-In and Super Saver facility on your account. Free Payable-at-Par chequebook, without any usage charges up to a limit of Rs.50,000/per month. Free Insta Alerts for all account holders for lifetime of the account..
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KIDS ADVANTAGES ACCOUNT -: Children these days are way ahead of their times. Make sure your investments don't fall short. Now through HDFC Bank's Kid's Advantage Account you can ensure your child's secured future and fulfill all his dreams in time. The Kid's Advantage Account presents you a great way to accumulate savings for your child and provide him the head-start required to succeed in life. It's an account which grows with your child to meet his future monetary requirements.

FEATURES AND BENEFITS Free Education Insurance cover of Rs. 1,00,000/ ATM/International Debit Card will be issued for children between 7-18 years of age in the child's name with parents permission. Free cash withdrawals on any other Bank's ATM. 1 free personalized cheque book for your child. Free Net Banking for you to monitor your child's account. Free SMS/Email alerts informing you about the account transactions. Once the balance in the Kid's Advantage Account reaches/exceeds Rs. 35,000/-, the amount in excess of Rs. 25,000/- will automatically be transferred into a Fixed Deposit for 1 year 1 day, in your child's name, by signing in for our sweep-out facility.

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SENIOR CITIZENS ACCOUNT-: HDFC Bank appreciates your needs and Endeavours, which is why, HDFC BANK present an account especially dedicated to senior citizens, which like a dutiful child will help you fulfill your needs in the best manner possiblle

FEATURES & BENEFITS Shop with pride with your Easy Shop International Debit Card. Payable-at-Par (PAP) cheque books are issued free. Avail of free Passbook facility at your account branch. Avail free SMS alerts to know the transactions in your account. Get preferential rates on FDs. Get Accidental Hospitalization cover of Rs.50,000/- per annum. This is a reimbursement cover for the first applicant. Gold Credit Card free.

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CHAPTER-5 RESEARCH OBJECTIVE

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RESEARCH OBJECTIVES

To find out the level of satisfaction among saving account holders of HDFC Bank. To understand perception about HDFC products and services among customers.

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CHAPTER-6

RESEARCH METHODOLY

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RESEARCH METHODOLOGY
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 Pune.

RESEARCH DESIGN: 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.

DEVELOPING THE RESEARCH PLAN: The data for this research project has been collected through self Administration. Due to time limitation and other constraints direct personal interview method is used. A structured questionnaire was framed as it is less time consuming, generates specific and to the point information, easier to tabulate and interpret. Moreover respondents prefer to give direct answers. In questionnaires open ended and closed ended, both the types of questions has been used.

COLLECTION OF DATA: 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 companys database and website of the company.
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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 through a structured questionnaire.

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: Different professionals Chartered Accountants, Tax Consultants, Lawyers, Business Man, Professionals and House Wives of Pune.

Sample Technique: Random Sampling. Research Instrument: Structured Questionnaire. Contact Method: Personal Interview.

SAMPLE SIZE: My sample size for this project was 450 respondents. Since it was not possible to cover the whole universe in the available time period, it was necessary for me to take a sample size of 450 respondents.

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DATA COLLECTION INSTRUMENT DEVELOPMENT: The mode of collection of data will be based on Survey Method and Field Activity. Primary data collection will base on personal interview. I have prepared the questionnaire according to the necessity of the data to be collected. RESEARCH PROCESS I completed my summer internship from HDFC (pasan-baner link road). Marketing manager of HDFC assigned me to sale saving account in pasan-baner link road and my objective are Finding the market for saving account of HDFC Bank. To complete my SIP, I selected the title Analyzing market competition and satisfaction of among customers of HDFC Bank in pasan area and surveyed 450 persons. 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 pune. All the findings and conclusions obtained are based on the survey done in the working area. RESEARCH LIMITATIONS:

Limitation of time and money of the student researcher, so at times proper assistance for the researchers project is not obtained.

Communication problem with some of customers are comfortable in their mother tongue so substantial percentage of customers are not ready to spare their time and attention to fill the relevant information into the questionnaire.

It was difficult to take appointment with some business person as they have busy schedule.
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CHAPTER-7 DATA ANALYSIS

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Qu.1) Do you have account in HDFC bank NO. OF RESPONDENTS OPTIONS YES NO TOTAL 150 300 450

respondant

33% yes no 67%

INTREPRETRATION This shows that market penetration of HDFC bank is about 33 percentage. As the AQB of nationalized and cooperative bank is very low. Most of the customers are not actual customers of HDFC Bank (66% customers).

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Q2. Which Factors do you consider before opening an Account? Category Min. opening balance Maintaining AQB Services & Offers Transaction Charges Distance from Branch Total
Base 200 respondents
Min. opening balance Transaction Charges 12% 8% 41% Maintaining AQB Distance from Branch 9% 30% Services & Offers

No. of Respondents 135 184 36 54 41 450

Percentage 30% 41% 8% 12% 9% 100%

Interpretation From our survey, we found customers considered AQB (Annual Quarter Balance) as one of the prime factor in opening an account (41%). Minimum opening balance is preferred as a second factor in opening saving A/C. Other factor like services, offers, transaction charges, and distance from branch are not given much importance for opening an saving account.
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Q3. What is the first thing that comes to your mind when you think of HDFC Bank? Category Branches in city ATMs nearby Industrial Bank Housing Loan Bank No response Total
Base 200 respondents
Branches in city House Loan Bank ATMs nearby No response Industrial Bank

No. of Respondents 72 36 48 41 247 450 16% 8% 12% 9% 55%

Percentage

100%

16% 8% 55% 9% 12%

Interpretation: We targeted some rural market also where customers of HDFC bank are less in number so there was no response of people because some PSU banks are near to them. Awareness of HDFC banks and its services are low among people. Branch in a city is prime factor that comes in customers mind first (16%).
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Q4. In which bank do you find relevant products to your need? TABLE Category HDFC bank Axis bank ICICI bank SBI bank Cooperative bank Total No. of Respondents 77 126 81 67 99 450 17% 28% 18% 15% 22% 100% Base 200 respondents GRAPH
HDFC bank Axis bank ICICI bank SBI bank Cooperative bank

Percentage

22% 15% 18%

17% 28%

Interpretation Most of the person was in favor of AXIS bank as they find more customize/personalize services or products in this bank. Some of the customers were not in favor of nationalized bank to find the relevant product to their need.
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Q5.Your Age Having A/C in HDFC OPTIONS Bank 18-23 Years 24-29 Years 30-35 Years 35 Years and above TOTAL 25 35 60 30 150 120 65 40 75 300 Not Having A/C in HDFC Bank

Chart Title
140 120 100 80 60 40 20 0 18 - 23 24 - 29 30 - 35 35 & above Having a/c Not having a/c

INTREPRETATION This shows those maximum customers who are having a/c in HDFC bank is of 30 to 35 years of age. The maximum no. customers who dont have a/c in HDFC bank is of 18-23 years of age which is the minimum age group for a/c holder in HDFC.

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Q6. Educational Qualification. Not having A/C in HDFC OPTIONS Having A/C in HDFC bank bank Undergraduate Graduate Post graduate TOTAL 18 58 74 150 147 72 81 300

160 140 120 100 80 60 40 20 0 Undergraduate Graduate Post graduate Having a/c Not having a/c

INTREPRETATION This show that maximum no. of customer who are having a/c is post graduate, while undergraduate customer is very low in number. Some of people who dont have a/c in HDFC bank is undergraduate.

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Q7. What is your Occupation? Not having A/C in HDFC OPTIONS Having A/C in HDFC bank bank Business Profession Private Service Public Service TOTAL 63 38 42 07 150 74 63 66 97 300

100 90 80 70 60 50 40 30 20 10 0 Business Profession Private Service Public Service Having a/c Not having a/c

INTREPRETATION We segmented on the basis of occupation and found out that businessman are major customer of HDFC Bank. This show that maximum no. of customer of HDFC is businessman, while people who works in public sector having lowest share in a/c holders.
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Q8.Your annual household income. Not having A/C in HDFC OPTIONS Having A/C in HDFC bank bank Less than 2 lacks Between 2 to 5 lacks Between 5 to 8 lacks More than 8 lacks TOTAL 7 23 51 69 150 127 83 47 43 300

140 120 100 80 60 40 20 0 Less than 2 lacks Between 2 to 5 Between 5 to 8 lacks lacks More than 8 lacks Having a/c Not having a/c

INTERPRETETION This shows that the maximum no. of customer of HDFC bank having annual income of more than 8 lacks, the people who have annual income of less than 2 lacks cant maintain the AQB of HDFC bank. As the people who have less than 8 lacks is minimum for not having a/c in HDFC, means HDFC is taping the higher income class people.

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Q9.How much do you personally give importance to the business banking relationship? Not having A/C in HDFC OPTIONS Having A/C in HDFC bank bank Highly Very Much So So Not Much No Importance TOTAL 77 33 24 14 2 150 153 67 49 29 2 300

160 140 120 100 80 60 40 20 0 Highly Very Much So - So Not much No Importance Having a/c Not having a/c

INTERPRETATION This shows that the customer of HDFC bank give highly importance to banking relationship because they understand the benefits such as credit card, loan etc. Most of the customers who are not having HDFC A/C also give importance to business banking relationship (153 person out of 300).
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Q10. Do you want to open a savings account with HDFC Bank? Not having A/C in HDFC OPTIONS Having A/C in HDFC bank bank Yes No Will Tell Later TOTAL 150 32 234 34 300

opening a/c with HDFC

15% 10%

Yes No Will Tell Later

75%

INTERPRETATION Most of the customers who are not customer of HDFC bank are not ready to open account in HDFC bank because of high A/C opening charges (Rs. 5000-100000). Some customers want to open A/C because they aware about HDFC product and services and benefits like ATM and branch bank is near to the home, transaction charges etc.
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Q11.What is your perception about different product & services offered by HDFC Bank? OPTIONS Having A/C in HDFC Not having A/C in HDFC bank Lucrative Not Lucrative No Idea TOTAL 104 19 27 150 bank 39 82 179 300

200 150 100 50 0 Lucrative Not Lucrative No Idea Having a/c Not having a/c

INTERPRETATION This shows that the customers of HDFC bank are satisfied with the offered products and services and their perception towards HDFC bank is lucrative. Opinion of Some customers about products and services offered are no lucrative and no idea because lack of awareness. Most of the customers who do not having A/C said that there is no idea about HDFC products and services (179 out of 300).

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Q12. Would you like to maintain long-lasting relationship with HDFC Bank? OPTIONS Having A/C in HDFC bank Not having A/C in HDFC bank Yes May be Depends on Situation No TOTAL 63 27 37 23 150 300

maintaining Relationship with HDFC

15% 42% yes 25% May be Depends on Situation 18% No

INTERPRETATION This shows that a large number of HDFC banks customer want to maintain their relationship for long time with the bank. Irrespective of some dissatisfaction people are still thinking to look forward for the HDFC banks plan.
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Q13. Are you satisfied with HDFC Banks services? OPTIONS Having A/C in HDFC bank Not having A/C in HDFC bank Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied TOTAL 32 28 47 27 16 150 300 -

SATISFACTION LEVEL OF CUSTOMER

11% 21% highly satiafied 18% satisfied neutral 19% dissatisfied highly dissatified 31%

INTERPRETATION This shows that large number of customers is neutral but a large segment of people are satisfied with the banking services of HDFC.
The data shows that HDFC bank is either not taking care of their particular segment of customers. To capture the market more HDFC bank has to improve their some basic services. - 52 -

CHAPTER-8 FINDING, RECOMMENDATION & SUGGESION

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FINDINGS

The maximum no. of customer of HDFC Bank is of age group of 30 to 35 years and above. There is a market of age group of 18 to 23 year which is not targeted by the bank. The maximum no. of customer of HDFC Bank is businessman. People who are working with public sector is in negligible number as a customer of the HDFC Bank. The people who are having a/c in HDFC bank are satisfied with the product and services of the bank , and they believe that the same are lucrative . here out of 150 customer, 104 customer believe that the product is lucrative . The people who dont have a/c in HDFC bank even dont know about the product and services of the bank. Here in this survey 179 out of 300 customers dont have any idea about the banks product, while 82 people dont have proper knowledge about it. Asking about the lasting of the relationship with the bank, result is not good for the bank in the future. Because only 63 out of 150 responded that YES they want a long lasting relationship with the bank. While the remaining are confused about it. Asking about changing the bank only 53 out of 150 customer of HDFC Bank responded as NO, while remaining are not that much satisfied so they are confused.

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Conclusion

The project opportunities provided to find out market competitors for HDFC Banks saving a/c and identifying prospective customers. By the method of questionnaire survey I also tried to find the effectiveness of the banks product, services and facilities in terms of its customer satisfaction. I tried to find out the different behavior of customer who is using services of HDFC Bank. I also tried to understand perception about HDFC products and services among its customers.

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Suggestion and recommendation

The bank should also target the people of age group of 18 to 23 (teenager youths) because a large no. of population is there in that age group which are untargeted. Bank should have different product and services for them as their income level is not very high. With different products and services bank should also target the people who are working with public sector. The bank needs to make people aware about their products and the basic benefits they can derive out of it. And also the differential features of its saving account as compared to other banks. Company should organize the program in the society, so that people will be aware about the company and different products of the bank HDFC needs to improve the services provided to its existing customers before attracting more in the future and use word of mouth as a promotional tool to increase the sales potential of its saving account. It is very important for the bank to retain the existing customer and maintaining a good relationship with them. For this bank can provide them some facility which other banks not providing , like membership fee of any club or gymkhana as more than 80% of customer of the bank is a member of any club or gymkhana.

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ANEXURE
THE QUESTIONNAIRE: Dear Sir/Madam, I am a student of INDIRA INSTITUTE OF MANAGEMENT,PUNE and presently doing a project on ANALYSING MARKET COMPETITION AND SATISFACTION AMONG CUSTOMERS OF HDFC BANK IN PASAN AREA . I request you to kindly fill the questionnaire below and I assure you that the data generated shall be kept confidential. Name: .. Address: .. Contact No :( O) (M) City: ...............Pin: .State: .

1) do you have account in HDFC bank?

a) yes b) no

2)

Which factors do you consider before opening an account? a) Minimum opening balance. b) Maintaining AQB c) Services and Offers d) Transaction charges e) Distance from branches - 58 -

. 3.) What is the first thing that comes to your mind when you think of HDFC Bank? a) Branches in a city b) ATM nearby c) Industrial Bank d) Housing Loan Bank. 4.) In which bank do you find relevant products to your need? a) HDFC Bank b) Axis Bank c) ICICI d) SBI e) Co-operative Bank. 5.) Your Age? a) 18-23 Years b) 24-29 Years c) 30-35 Years d) 35 Years and above 6.) Education Qualification? a) Undergraduate b) Graduate c) Post graduate

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7.) Occupation? a) Business b) Profession c) private Services d) public services 8.) Your annual house hold income? a) < than 2 lack b) Between 2 to 5 lack c) Between 5 to 8 lack d) > than 8 lack 9.) How much do you personally give importance to business banking relationship? a) Highly b) Very much c) So-So d) Not much e) No importance 10.) Do you want to open saving account with HDFC Bank? a) Yes b) No c) Will tell later. 11.) What is your perception about different product and services offered by HDFC Bank? a) Lucrative b) Not lucrative c) No idea

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12.) Would you like to maintain long-lasting relationship with HDFC Bank? a) Yes b) May be c) Depends on situation d) No 13.) Are you satisfied with HDFC banks services? a) Highly satisfied b) Satisfied c) Partially satisfied d) Not satisfied

Date: Place: Signature: Thank You

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BIBLIOGRAPHY

1.BOOKS Marketing Management (10th Edition) Marketing Management (3rd Edition) Research Methodology (2nd Edition) Research Methodology

AUTHORS Philip Kotler V.S. Ramaswamy C.R.Kothary M.V. KULKARNI

2. NEWS PAPERS Times of India Financial Express

3.WEBSITES

www.hdfcbank.com www.hdfc.com www.crisil.com www.wikipedia.com www.rbi.com

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