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COMPARATIVE STUDY OF CUSTOMERS

SATISFACTION
TOWARDS HDFC BANK
AND
STATE BANK OF INDIA



1

DECLARATION
Hereby we declare that the project report entitled COMPARATIVE ST!" O#
CSTOMER$S SATIS#ACTIO% TO&AR!S H!#C 'A%( A%! STATE 'A%( O#
I%!IA) *+b,itted -or the de.ree o- Ma*ter o- '+*ine** Ad,ini*tration/ o+r ori.inal
wor0 and the project report ha* not -or,ed the ba*i* -or the award o- any diplo,a/
de.ree/ a**ociate *hip/ -ellow*hip or *i,ilar other title*1 It ha* not been *+b,itted to any
other +ni2er*ity or in*tit+tion -or the award o- any de.ree or diplo,a1

. . . . .



3

ABSTRACT
The pre*ent *t+dy wa* +nderta0en to 0now the pre-erence o- the c+*to,er* toward*
H!#C 'an0 and State 'an0 o- India 4S'I51 The ,ain proble, o- the c+*to,er* i*
they are not well aware o- the *er2ice* pro2ided by their ban0*1 The *t+dy al*o -orce
on the c+*to,er perception that how the ban0in. *er2ice can be i,pro2ed1 In o+r
*t+dy we ha2e +*ed both pri,ary *o+rce* o- data a* well a* *econdary *o+rce* o-
data1 !+rin. project we ca,e to 0now that both the ban0* are hi.hly pre-erred by the
c+*to,er* b+t their pre-erence i* di--erent +p to *o,e e6tent toward* the *er2ice o- the*e
ban0*1

7

ACKNOWLEDGEMENT
%o *erio+* and la*tin. achie2e,ent or *+cce** one e2er achie2e* witho+t the -riendly
.+idance and cooperation o- *o ,any people in2ol2ed in wor01
#ore,o*t o- all/ I e6pre** ,y .ratit+de to the Al,i.hty -or hi* ble**in.* and -or 2e*tin.
wi*do, in all ,y wi*he*1
A -eelin. o- elation in*i*t* +* on e6pre**in. o+r heartie*t .ratit+de to Mr1A,it
Mahendroo/ who allowed doin. o+r project +nder hi* *+per2i*ion1
I place o+r than0* to all tho*e who *pared their ti,e and ,ade it con2enient -or +* to
co,plete the re*earch1 &e deeply ac0nowled.e their concern -or o+r re*earch1 8a*t b+t
not the lea*t/ we al*o wi*h to red cord o+r .ratit+de -or any per*on/ o+r ,e,ory ha*
-ailed to recall/ who rendered hi*9her9their *+pport and *er2ice*1

:



TABLE OF CONTENTS
Chapter 1
Banking Industry
1.1 Introduction to banking Industry 7-10
1.2 Banking system in India 10-12
1.3 Private Sector Bank 12-17
1.4 Public Sector Bank 17-1
Chapter 2
om!any Pro"ile
2.1 #vervie$ on State Bank #" India %-24
2.2 Services !rovided by State Bank #" India 24-2&
2.3 S'#( analysis o" SBI 2&-2)
2.4 #vervie$ on *+, Bank 2)-34
2.& Services !rovided by *+, Bank 34-3)
2.) S'#( analysis o" *+, Bank 3)-37
Chapter 3 3.1- #b.ectives 3
3.2- Sco!e 3
3.3- literature revie$ 3--41
3.4- /esearc0 1et0odology 41-42
3.&- 2imitations o" t0e study 42
Chapter 4 +ata 3nalysis and ,indings
4.1 State Bank #" India bank analysis 43-&)
4.2 *+, Bank analysis &7-71
4.3 om!arative analysis 72--3
Chapter 5 &.1- &.1Suggestions and recommendations -4
&.2- &.2 3ssum!tions -4
Appendix

).1 4uestionnaire -&-
).2 Bibliogra!0y
;

Chapter
BANKING INDUSTRY
.I!tr"#$%t&"! t" I!#&a! Ba!'&!( S)*te+
H&*t"r) ", Ba!'&!( &! I!#&a
&itho+t a *o+nd and e--ecti2e ban0in. *y*te, in India it cannot ha2e a healthy econo,y1
The ban0in. *y*te, o- India *ho+ld not only be ha**le -ree b+t it *ho+ld be able to ,eet
new challen.e* po*ed by the technolo.y and any other e6ternal and internal -actor*1
#or the pa*t three decade* India<* ban0in. *y*te, ha* *e2eral o+t*tandin. achie2e,ent*
to it* credit1 The ,o*t *tri0in. i* it* e6ten*i2e reach1 It i* no lon.er con-ined to only
,etropolitan* or co*,opolitan* in India1 In -act/ Indian ban0in. *y*te, ha* reached e2en
to the re,ote corner* o- the co+ntry1 Thi* i* one o- the ,ain rea*on* o- India<* .rowth
proce**1
The .o2ern,ent<* re.+lar policy -or Indian ban0 *ince 1=>= ha* paid rich di2idend* with
the nationali?ation o- 1: ,ajor pri2ate ban0* o- India
%ot lon. a.o/ an acco+nt holder had to wait -or ho+r* at the ban0 co+nter* -or .ettin. a
dra-t or -or withdrawin. hi* own ,oney1 Today/ he ha* a choice1 @one are day* when the
,o*t e--icient ban0 tran*-erred ,oney -ro, one branch to other in two day*1 %ow it i*
*i,ple a* in*tant ,e**a.in. or dial* a pi??a1 Money ha* beco,e the order o- the day1
The -ir*t ban0 in India/ tho+.h con*er2ati2e/ wa* e*tabli*hed in 1AB>1 #ro, 1AB> till
today/ the jo+rney o- Indian 'an0in. Sy*te, can be *e.re.ated into three di*tinct pha*e*1
They are a* ,entioned belowC
Early pha*e -ro, 1AB> to 1=>= o- Indian 'an0*
%ationali?ation o- Indian 'an0* and +p to 1==1 prior to Indian ban0in. *ector
Re-or,*1
%ew pha*e o- Indian 'an0in. Sy*te, with the ad2ent o- Indian #inancial D
'an0in. Sector Re-or,* a-ter 1==11
>

To ,a0e thi* writeE+p ,ore e6planatory/ I pre-i6 the *cenario a* Pha*e I/ Pha*e II and
Pha*e III1
Pha*e I
The @eneral 'an0 o- India wa* *et +p in the year 1AB>1 %e6t ca,e 'an0 o- Hind+*tan
and 'en.al 'an01 The Ea*t India Co,pany e*tabli*hed 'an0 o- 'en.al 41BF=5/ 'an0 o-
'o,bay 41B:F5 and 'an0 o- Madra* 41B:75 a* independent +nit* and called it Pre*idency
'an0*1 The*e three ban0* were a,al.a,ated in 1=3F and I,perial 'an0 o- India wa*
e*tabli*hed which *tarted a* pri2ate *hareholder* ban0*/ ,o*tly E+ropean* *hareholder*1
In 1B>; Allahabad 'an0 wa* e*tabli*hed and -ir*t ti,e e6cl+*i2ely by Indian*/ P+njab
%ational 'an0 8td1 wa* *et +p in 1B=: with headG+arter* at 8ahore1 'etween 1=F> and
1=17/ 'an0 o- India/ Central 'an0 o- India/ 'an0 o- 'aroda/ Canara 'an0/ Indian 'an0/
and 'an0 o- My*ore were *et +p1 Re*er2e 'an0 o- India ca,e in 1=7;1
!+rin. the -ir*t pha*e the .rowth wa* 2ery *low and ban0* al*o e6perienced periodic
-ail+re* between 1=17 and 1=:B1 There were appro6i,ately 11FF ban0*/ ,o*tly *,all1 To
*trea,line the -+nctionin. and acti2itie* o- co,,ercial ban0*/ the @o2ern,ent o- India
ca,e +p with The 'an0in. Co,panie* Act/ 1=:= which wa* later chan.ed to 'an0in.
Re.+lation Act 1=:= a* per a,endin. Act o- 1=>; 4Act %o1 37 o- 1=>;51 Re*er2e 'an0 o-
India wa* 2e*ted with e6ten*i2e power* -or the *+per2i*ion o- ban0in. in India a* the
Central 'an0in. A+thority1
!+rin. tho*e day$* p+blic ha* le**er con-idence in the ban0*1 A* an a-ter,ath depo*it
,obili?ation wa* *low1 Abrea*t o- it the *a2in.* ban0 -acility pro2ided by the Po*tal
depart,ent wa* co,parati2ely *a-er1 Moreo2er/ -+nd* were lar.ely .i2en to trader*1
Pha*e II
@o2ern,ent too0 ,ajor *tep* in thi* Indian 'an0in. Sector Re-or, a-ter independence1
In 1=;;/ it nationali?ed I,perial 'an0 o- India with e6ten*i2e ban0in. -acilitie* on a
lar.e *cale e*pecially in r+ral and *e,iE+rban area*1 It -or,ed State 'an0 o- India to act
a* the principal a.ent o- R'I and to handle ban0in. tran*action* o- the nion and State
@o2ern,ent* all o2er the co+ntry1
Se2en ban0* -or,in. *+b*idiary o- State 'an0 o- India wa* nationali?ed in 1=>F on 1=th
A

H+ly/ 1=>=/ ,ajor proce** o- nationali?ation wa* carried o+t1 It wa* the e--ort o- the then
Pri,e Mini*ter o- India/ Mr*1 Indira @andhi1 1: ,ajor co,,ercial ban0* in the co+ntry
were nationali?ed1
Second pha*e o- nationali?ation Indian 'an0in. Sector Re-or, wa* carried o+t in 1=BF
with *e2en ,ore ban0*1 Thi* *tep bro+.ht BFI o- the ban0in. *e.,ent in India +nder
@o2ern,ent owner*hip1
The -ollowin. are the *tep* ta0en by the @o2ern,ent o- India to Re.+late 'an0in.
In*tit+tion* in the Co+ntryC
1=:=C Enact,ent o- 'an0in. Re.+lation Act1
1=;;C %ationali?ation o- State 'an0 o- India1
1=;=C %ationali?ation o- S'I *+b*idiarie*1
1=>1C In*+rance co2er e6tended to depo*it*1
1=>=C %ationali?ation o- 1: ,ajor ban0*1
1=A1C Creation o- credit .+arantee corporation1
1=A;C Creation o- re.ional r+ral ban0*1
1=BFC %ationali?ation o- *e2en ban0* with depo*it* o2er 3FF crore*1
A-ter the nationali?ation o- ban0*/ the branche* o- the p+blic *ector ban0 India ro*e to
appro6i,ately BFFI in depo*it* and ad2ance* too0 a h+.e j+,p by 11/FFFI1
'an0in. in the *+n*hine o- @o2ern,ent owner*hip .a2e the p+blic i,plicit -aith and
i,,en*e con-idence abo+t the *+*tainability o- the*e in*tit+tion*1
Pha*e III
Thi* pha*e ha* introd+ced ,any ,ore prod+ct* and -acilitie* in the ban0in. *ector in it*
re-or,* ,ea*+re1 In 1==1/ +nder the chair,an*hip o- M %ara*i,ha,/ a co,,ittee wa*
*et +p by hi* na,e which wor0ed -or the liberali?ation* o- ban0in. practice*1
The co+ntry i* -looded with -orei.n ban0* and their ATM *tation*1 E--ort* are bein. p+t
to .i2e a *ati*-actory *er2ice to c+*to,er*1 Phone ban0in. and net ban0in. i* introd+ced1
The entire *y*te, beca,e ,ore con2enient and *wi-t1 Ti,e i* .i2en ,ore i,portance
than ,oney1
The -inancial *y*te, o- India ha* *hown a .reat deal o- re*ilience1 It i* *heltered -ro, any
cri*i* tri..ered by any e6ternal ,acroecono,ic* *hoc0 a* other Ea*t A*ian Co+ntrie*
B

*+--ered1 Thi* i* all d+e to a -le6ible e6chan.e rate re.i,e/ the -orei.n re*er2e* are hi.h/
the capital acco+nt i* not yet -+lly con2ertible/ and ban0* and their c+*to,er* ha2e
li,ited -orei.n e6chan.e e6po*+re
.- Ba!'&!( *)*te+ &! I!#&a
The Indian ban0in. can be broadly cate.ori?ed into nationali?ed 4.o2ern,ent owned5/
pri2ate ban0* and *peciali?ed ban0in. in*tit+tion*1 The Re*er2e 'an0 o- India act* a
centrali?ed body ,onitorin. any di*crepancie* and *hortco,in. in the *y*te,1 Since the
nationali?ation o- ban0* in 1=>=/ the p+blic *ector ban0* or the nationali?ed ban0* ha2e
acG+ired a place o- pro,inence and ha* *ince then *een tre,endo+* pro.re**1 The need to
beco,e hi.hly c+*to,er -oc+*ed ha* -orced the *lowE,o2in. p+blic *ector ban0* to
adopt a -a*t trac0 approach1 The +nlea*hin. o- prod+ct* and *er2ice* thro+.h the net ha*
.al2ani?ed player* at all le2el* o- the ban0in. and -inancial in*tit+tion* ,ar0et .rid to
loo0 anew at their e6i*tin. port-olio o--erin.1 Con*er2ati2e ban0in. practice* allowed
Indian ban0* to be in*+lated partially -ro, the A*ian c+rrency cri*i*1Indian ban0* are now
G+otin. al hi.her 2al+ation when co,pared to ban0* in other A*ian co+ntrie* 42i?1 Hon.
(on./ Sin.apore/ Philippine* etc15 that ha2e ,ajor proble,* lin0ed to h+.e %on
Per-or,in. A**et* 4%PA*5 and pay,ent de-a+lt*1 CoEoperati2e ban0* are ni,ble -ooted
in approach and ar,ed with e--icient branch networ0* -oc+* pri,arily on the Jhi.h
re2en+e$ niche retail *e.,ent*1
The Indian ban0in. ha* -inally wor0ed +p to the co,petiti2e dyna,ic* o- the Jnew$
Indian ,ar0et and i* addre**in. the rele2ant i**+e* to ta0e on the ,+lti-ario+* challen.e*
o- .lobali?ation1 'an0* that e,ploy IT *ol+tion* are percei2ed to be J-+t+ri*tic$ and
proacti2e player* capable o- ,eetin. the ,+lti-ario+* reG+ire,ent* o- the lar.e c+*to,er*
ba*e1 Pri2ate ban0* ha2e been -a*t on the +pta0e and are reorientin. their *trate.ie* +*in.
the internet a* a ,edi+, The Internet ha* e,er.ed a* the new and challen.in. -rontier o-
,ar0etin. with the con2entional phy*ical world tenet* bein. j+*t a* applicable li0e in any
other ,ar0etin. ,edi+,1
The Indian ban0in. ha* co,e -ro, a lon. way -ro, bein. a *leepy b+*ine** in*tit+tion to
a hi.hly proacti2e and dyna,ic entity1 Thi* tran*-or,ation ha* been lar.ely bro+.ht
=

abo+t by the lar.e do*e o- liberali?ation and econo,ic re-or,* that allowed ban0* to
e6plore new b+*ine** opport+nitie* rather than .eneratin. re2en+e* -ro, con2entional
*trea,* 4i1e1 borrowin. and lendin.51 The ban0in. in India i* hi.hly -ra.,ented with 7F
ban0in. +nit* contrib+tin. to al,o*t ;FI o- depo*it* and >FI o- ad2ance*1 Indian
nationali?ed ban0* 4ban0* owned by the .o2ern,ent5 contin+e to be the ,ajor lender* in
the econo,y d+e to their *heer *i?e and penetrati2e networ0* which a**+re* the, hi.h
depo*it ,obili?ation1 The Indian ban0in. can be broadly cate.ori?ed into nationali?ed/
pri2ate ban0* and *peciali?ed ban0in. in*tit+tion*1
The Re*er2e 'an0 o- India act a* a centrali?ed body ,onitorin. any di*crepancie* and
*hortco,in. in the *y*te,1 It i* the -ore,o*t ,onitorin. body in the Indian -inancial
*ector1 The nationali?ed ban0* 4i1e1 .o2ern,entEowned ban0*5 contin+e to do,inate the
Indian ban0in. arena1 Ind+*try e*ti,ate* indicate that o+t o- 3A: co,,ercial ban0*
operatin. in India/ 337 ban0* are in the p+blic *ector and ;1 are in the pri2ate *ector1 The
pri2ate *ector ban0 .rid al*o incl+de* 3: -orei.n ban0* that ha2e *tarted their operation*
here1 nder the a,bit o- the nationali?ed ban0* co,e the *peciali?ed ban0in.
in*tit+tion*1 The*e coEoperati2e*/ r+ral ban0* -oc+* on area* o- a.ric+lt+re/ r+ral
de2elop,ent etc1/ +nli0e co,,ercial ban0* the*e coEoperati2e ban0* do not lend on the
ba*i* o- a pri,e lendin. rate1 They al*o ha2e 2ario+* ta6 *op* beca+*e o- their holdin.
pattern and lendin. *tr+ct+re and hence ha2e lower o2erhead*1 Thi* enable* the, to .i2e
a ,ar.inally hi.her percenta.e on *a2in.* depo*it*1 Many o- the*e cooperati2e ban0*
di2er*i-ied into *peciali?ed area* 4caterin. to the 2a*t retail a+dience5 li0e car -inance/
ho+*in. loan*/ tr+c0 -inance etc1 in order to 0eep pace with their p+blic *ector and
pri2ate co+nterpart*/ the coEoperati2e ban0* too ha2e in2e*ted hea2ily in in-or,ation
technolo.y to o--er hi.hEend co,p+teri?ed ban0in. *er2ice* to it* client*1
TYPES OF BANKS
Ce!tra. Ba!'
The Re*er2e 'an0 o- India i* the central 'an0 that i* -+lly owned by the @o2ern,ent1 It
i* .o2erned by a central board 4headed by a @o2ernor5 appointed by the Central
@o2ern,ent1 It i**+e* .+ideline* -or the -+nctionin. o- all ban0* operatin. within the
co+ntry1
1F

C"/"perat&0e Se%t"r
The coEoperati2e *ector i* 2ery ,+ch +*e-+l -or r+ral people1 The coEoperati2e ban0in.
*ector i* di2ided into the -ollowin. cate.orie*1
a1State coEoperati2e 'an0*
b1Central coEoperati2e ban0*
c1Pri,ary A.ric+lt+re Credit Societie*
De0e."p+e!t Ba!'*1F&!a!%&a. I!*t&t$t&"!*
IFCI
IDBI
ICICI
IIBI
SCICI Lt#
NABARD
E2p"rt/I+p"rt Ba!' ", I!#&a
Nat&"!a. H"$*&!( Ba!'
S+a.. I!#$*tr&e* De0e."p+e!t Ba!' ", I!#&a
N"rth Ea*ter! De0e."p+e!t F&!a!%e C"rp"rat&"!
.3 PRIVATE SECTOR BANKS
a1 Old .eneration pri2ate ban0*
b1 %ew .eneration pri2ate ban0*
c1 #orei.n ban0* operatin. in India
d1 Sched+led coEoperati2e ban0*
e1 %onE*ched+led ban0*
11

Pr&0ate Se%t"r Ba!'*
11H!#C 'an0
31 ICICI 'an0
71 #ederal 'an0
:1 I%@ Vy*ya 'an0
;1 A6i* 'an0 4-or,erly TI 'an05
>1 "e* 'an0
A1 'an0 o- Raja*than
B1'harat O2er*ea* 'an0
=1 Catholic Syrian 'an0
1F1Cent+rion 'an0 o- P+njab
111City nion 'an0
131!e2elop,ent Credit 'an0
171 !hanala0*h,i 'an0
1:1@ane*h 'an0 o- (+r+ndwad
1;1 Ind+*Ind 'an0
1>1 Ha,,+ D (a*h,ir 'an0
1A1(arnata0a 'an0 8i,ited
1B1(ar+r Vy*ya 'an0
1=1 (ota0 Mahindra 'an0
3F1 8a0*h,i Vila* 'an0
311 %ainital 'an0
331 Ratna0ar 'an0
371 S'I Co,,ercial and International 'an0
13

3:1So+th Indian 'an0
3;1A,a?in. Mercantile 'an0
3>1 P+njab %ational 'an0
3A1R+pee 'an0
3B1Sara*wat 'an0
3=1Ta,ilnad Mercantile 'an0
7F1 Thane Hanata Saha0ari 'an0
711'a**ein Catholic 'an0
A-ter nationali?ation o- 1: co,,ercial ban0* in 1=>=/ no new pri2ate ban0* were
licen*ed by R'I in the co+ntry/ tho+.h there wa* no le.al ban0 on entry o- pri2ate *ector
ban0*1 The %ar*i,ha co,,ittee report o- 1==1/ ha* en2i*a.ed a lar.er role -or pri2ate
*ector ban0*1 In reco.nition o- need to introd+ce .reater co,petition with a 2iew to
achie2in. hi.her prod+cti2ity and e--iciency o- ban0in. *y*te,1 R'I i**+ed -ew
.+ideline* in Han 1==7 -or entry o- pri2ate *ector ban0*1 It pre*cribed o- ,ini,+, paid +p
capital o- R*11FF crore* -or new ban0 and *hare* to be li*ted at *toc0 e6chan.e* new ban0
a-ter bein. .ranted licen*e +nder 'an0in. Re.+lation Act/ *hall be re.i*tered a* P+blic
ltd1 Co,pany +nder co,panie* Act 1=;>1 S+b*eG+ently nine new co,,ercial ban0* ha2e
been .ranted licen*e to *tart ban0in. operation*1 The new pri2ate *ector ban0* ha2e been
2ery a..re**i2e in b+*ine** e6pan*ion and are al*o reportin. hi.her pro-it le2el* ta0in.
ad2anta.e o- technical and *0illed ,anpower1 In certain area*/ the*e ban0* ha2e been o+t
cro**ed the other .ro+p o- ban0* incl+din. -orei.n ban0*1
GUIDELINES FOR PRIVATE SECTOR BANKS
The R'I i**+ed .+ideline* re.ardin. the -or,ation and -+nctionin. o- pri2ate *ector
ban0* in Han+ary 1==71 The*e .+ideline* are a* -ollow*C
The ban0* *hall be .o2erned by the pro2i*ion* o- The Re*er2e 'an0 o- India Act/
1=7: The 'an0in. Re.+lation* Act/ 1=:= other rele2ant *tat+arie*1
17

Pri2ate *ector ban0* are reG+ired to be re.i*tered a* p+blic li,ited co,panie* in
India1
The a+thority to .rant a licen*e lie* with the R'I1
The *hare* o- ban0* are reG+ired to be li*ted on *toc0 e6chan.e*1
Pre-erence will be .i2en to tho*e ban0* who*e headG+arter* are propo*ed to be
located in a center that doe* not ha2e headG+arter* o- any other ban01
Ma6i,+, 2otin. ri.ht* o- an indi2id+al *hareholder wo+ld be li,ited to 1I o-
total 2otin. ri.ht*1
The new ban0 wo+ld not be allowed to ha2e a* it* director any per*on who i*
already a director in a ban0in. co,pany1
The ban0 will be *+bject to pr+dential nor,* in re*pect o- ban0in. operation*/
acco+ntin. policie* and other policie*/ a* laid down by R'I1 The ban0 will be
reG+ired to adhere to the -ollowin.C Mini,+, paid +p *hare capital o- R*1 1 bln1
Pro,oter*< contrib+tion a* deter,ined by the R'I Capital adeG+acy o- BI o- the
ri*0 wei.hted a**et* Sin.le borrower and .ro+p borrower e6po*+re li,it* in -orce
Priority *ector lendin. E6port credit 8oan policy within o2erall policy .+ideline*
laid down by the R'I1
The ban0* will be -ree to open branche* anywhere once they *ati*-y the capital
adeG+acy and pr+dential acco+ntin. nor,*1
The ban0* wo+ld not be allowed to ha2e in2e*t,ent* in *+b*idiarie*/ ,+t+al -+nd*
and port-olio in2e*t,ent* in other co,panie* in e6ce** o- 3FI o- the ban0*< own
paid +p capital and re*er2e*1
The ban0* wo+ld be reG+ired to +*e ,odern in-ra*tr+ct+ral -acilitie* in o--ice
eG+ip,ent/ co,p+ter/ teleco,,+nication* etc1
MA4OR PLAYERS IN PRIVATE SECTOR BANKS
ICICI Ba!'5 ICICI 'an0in. i* co,,ercial 'an0in. ar, o- ICICI .ro+p1 It recei2ed it*
ban0in. licen*e -ro, R'I on ,ay 1A ,ay 1==: and it* branch wa* *tarted in Madra* in
H+ne 1==:1 ICICI 'an0 ha* a networ0 o- abo+t ;>F branche* and e6ten*ion co+nter* and
o2er 1/=FF ATM*1 ICICI 'an0 o--er* a wide ran.e o- ban0in. prod+ct* and -inancial
*er2ice* to corporate and retail c+*to,er* thro+.h wide 2ariety o- deli2ery channel* and
1:

thro+.h it* *peciali?ed *+b*idiarie* and a--iliate* in the area* o- in2e*t,ent ban0in./li-e
and nonEli-e in*+rance/ 2ent+re capital and a**et ,ana.e,ent1 ICICI 'an0 *et +p it*
international ban0in. .ro+p in -i*cal 3FF3 to cater to cro** border need* o- client* and
le2era.e on it* do,e*tic ban0in. *tren.th* to o--er prod+ct internationally1 ICICI 'an0$*
eG+ity *hare* are li*ted in India on the Stoc0 E6chan.e/ M+,bai and the %ational Stoc0
E6chan.e o- India 8i,ited and it* A,erican !epo*itary Receipt* are li*ted on %ew "or0
Stoc0 E6chan.e1 It i* the -ir*t ban0 to *tart Internet ban0in. *er2ice in India1 In 1===/
ICICI beco,e the -ir*t Indian Co,pany and the -ir*t ban0 or -inancial in*tit+tion -ro,
nonEHapan A*ia to be li*ted on %"SE1
IDBI Ba!'5 . I!'I 8td1/ the tenth lar.e*t de2elop,ent ban0 in the world ha* pro,oted
world cla** in*tit+tion* in India1 I!'I pro,oted I!'I ban0 to ,ar0 the -or,al -oray o-
the I!'I .ro+p into co,,ercial 'an0in.1 I!'I be.+n with an eG+ity capital ba*e o-
R*11FFF ,illion/ co,,enced it* -ir*t branch at Indore in %o2e,ber 1==;1 The birth o-
I!'I too0 place a-ter R'I i**+ed .+ideline* -or entry o- new pri2ate *ector ban0* in
Han+ary =71 I!'I ban0 deployed #inacle/ the eEa.e ban0in. *ol+tion -ro, In-o*y* tio
con*olidate it* po*ition/ ,eet challen.e* and G+ic0ly *ei?e new b+*ine** opport+nitie*1
I!'I ban0 beco,e the -ir*t to o--er ,obile re-ill9rechar.e +*in. *,*/ la+nch o- ATM
ne6t)/ which pro2ide online in-or,ation abo+t %ew*/ cric0et *core*/ e,er.ency n+,ber*/
ban0$* prod+ct* on ATM*1
UTI Ba!'5 .TI 'an0 wa* the -ir*t o- the new pri2ate ban0* to ha2e br.+n operation* in
1==:/ a-ter the .o2ern,ent o- India allowed new pri2ate ban0* to be e*tabli*hed1 The
'an0 wa* pro,oted jointly by the Ad,ini*trator o- the *peci-ied +nderta0in. o- the
nited Tr+*t o- India4TIEI5/ 8i-e In*+rance Corporation o- India48IC5 and @eneral
In*+rance Corporation 8td1 and it* a**ociate* 2i?1%ational In*+rance Co,pany 8td1/The
%ew India A**+rance Corporation/ The Oriental In*+rance Corporation and nited
In*+rance Co,pany 8td1 The ban0 today i* capitali?ed to the e6tent o- R*13AB113 crore*
with p+blic holdin. at ;>11B I1 The ban0$* re.i*tered o--ice i* at Ah,edabad and it*
central o--ice i* at M+,bai1 The ban0 ha* wide networ0 o- ,ore than 7;F branch o--ice*
and E6ten*ion Co+nter*1 The 'an0 ha* networ0 o- o2er 1>;A ATM* pro2idin. 3:hr* a
day ban0in. con2enience to it* c+*to,er*1 The ban0 wa* *et+p with capital o- R*111;
crore/ with TI contrib+tin. R*11FF crore/ 8ICER*1A1; crore and it* -o+r *+b*idiarie*
1;

contrib+tin. R*1 11; crore each1
HDFC Ba!'5 . H!#C 'an0 i* headG+artered in M+,bai1 The 'an0 at pre*ent ha* an
en2iable networ0 o- o2er :=; branche* *pread o2er 31B citie* acro** India1 All branche*
are lin0ed on an online realEti,e ba*i*1 C+*to,er* in o2er 13F location* are al*o *er2iced
thro+.h Telephone 'an0in.1 The 'an0$* e6pan*ion plan* ta0e into acco+nt the need to
ha2e a pre*ence in all ,ajor ind+*trial and co,,ercial centre* where it* corporate
c+*to,er* are located a* well a* the need to b+ild a *tron. retail c+*to,er ba*e -or both
depo*it* and loan prod+ct*1 'ein. a clearin.9*ettle,ent ban0 to 2ario+* leadin. *toc0
e6chan.e*/ the 'an0 ha* branche* in the centre* where the %SE9'SE ha2e a *tron. and
acti2e ,e,ber ba*e1 The a+thori?ed capital o- H!#C 'an0 i* R*1:;F crore 4R*1:1;
billion51 The paidE+p capital i* R*17F=1= crore 4R*171F= billion51 The H!#C @ro+p hold*
3313I o- the ban0$* eG+ity and abo+t 1=1;I o- the eG+ity i* held by the A!S !epo*itory1
The 'an0 ha* ,ade *+b*tantial e--ort* and in2e*t,ent* in acG+irin. the be*t technolo.y
a2ailable internationally/ to b+ild the in-ra*tr+ct+re -or a world cla** ban01
.6 P$7.&% Se%t"r Ba!'*
a1State 'an0 o- India and it* a**ociate ban0* called the State 'an0 @ro+p
b13F nationali?ed ban0*
c1Re.ional r+ral ban0* ,ainly *pon*ored by p+blic *ector ban0*
P$7.&% Se%t"r Ba!'* 8Nat&"!a.&9e# 7a!'*:5
11 State 'an0 o- India 4S'I5
31 State 'an0 o- 'i0aner D Haip+r
71 State 'an0 o- Hyderabad
:1 State 'an0 o- Indore
;1 State 'an0 o- My*ore
>1 State 'an0 o- Patiala
A1 State 'an0 o- Sa+ra*htra
B1 State 'an0 o- Tra2ancore
=1 'an0 o- India
1>

1F1 Canara 'an0
111 Central 'an0
o- India
131 Corporation ban0
171 Indian 'an0
1:1 Indian o2er*ea* ban0
1;1 Syndicate 'an0
1>1 CO 'an0
1A1 Allahabad 'an0
1B1 Andhra 'an0
1=1 'an0 o- 'aroda
3F1 'an0 o- Mahara*htra
311 !ena 'an0
331 Oriental 'an0 o- Co,,erce
371 P+njab D Sind 'an0
3:1 nion 'an0
o- India
3;1 nited 'an0 o- India
3>1 Vijaya 'an0
3A1 I!'I 'an0
1A

Chapter -5 C"+pa!) Pr",&.e
-. O0er0&e; ", SBI
EVOLUTION OF SBI
The ori.in o- the State 'an0 o- India .oe* bac0 to the -ir*t decade o- the nineteenth
cent+ry with the e*tabli*h,ent o- the 'an0 o- Calc+tta in Calc+tta on 3 H+ne 1BF>1 Three
year* later the ban0 recei2ed it* charter and wa* reEde*i.ned a* the 'an0 o- 'en.al 43
Han+ary 1BF=51 A +niG+e in*tit+tion/ it wa* the -ir*t jointE*toc0 ban0 o- 'riti*h India
*pon*ored by the @o2ern,ent o- 'en.al1 The 'an0 o- 'o,bay 41; April 1B:F5 and the
'an0 o- Madra* 41 H+ly 1B:75 -ollowed the 'an0 o- 'en.al1 The*e three ban0* re,ained
at the ape6 o- ,odern ban0in. in India till their a,al.a,ation a* the I,perial 'an0 o-
India on 3A Han+ary 1=311
Pri,arily An.loEIndian creation*/ the three pre*idency ban0* ca,e into e6i*tence either
a* a re*+lt o- the co,p+l*ion* o- i,perial -inance or by the -elt need* o- local E+ropean
co,,erce and were not i,po*ed -ro, o+t*ide in an arbitrary ,anner to ,oderni*e
India<* econo,y1 Their e2ol+tion wa*/ howe2er/ *haped by idea* c+lled -ro, *i,ilar
de2elop,ent* in E+rope and En.land/ and wa* in-l+enced by chan.e* occ+rrin. in the
*tr+ct+re o- both the local tradin. en2iron,ent and tho*e in the relation* o- the Indian
econo,y to the econo,y o- E+rope and the .lobal econo,ic -ra,ewor01
E*ta7.&*h+e!t
The e*tabli*h,ent o- the 'an0 o- 'en.al ,ar0ed the ad2ent o- li,ited liability/ jointE
*toc0 ban0in. in India1 So wa* the a**ociated inno2ation in ban0in./ 2i?1 the deci*ion to
allow the 'an0 o- 'en.al to i**+e note*/ which wo+ld be accepted -or pay,ent o- p+blic
re2en+e* within a re*tricted .eo.raphical area1 Thi* ri.ht o- note i**+e wa* 2ery 2al+able
not only -or the 'an0 o- 'en.al b+t al*o it* two *iblin.*/ the 'an0* o- 'o,bay and
Madra*1 It ,eant an accretion to the capital o- the ban0*/ a capital on which the
proprietor* did not ha2e to pay any intere*t1 The concept o- depo*it ban0in. wa* al*o an
inno2ation beca+*e the practice o- acceptin. ,oney -or *a-e0eepin. 4and in *o,e ca*e*/
1B

e2en in2e*t,ent on behal- o- the client*5 by the indi.eno+* ban0er* had not *pread a* a
.eneral habit in ,o*t part* o- India1 '+t/ -or a lon. ti,e/ and e*pecially +pto the ti,e that
the three pre*idency ban0* had a ri.ht o- note i**+e/ ban0 note* and .o2ern,ent balance*
,ade +p the b+l0 o- the in2e*tible re*o+rce* o- the ban0*1
The three ban0* were .o2erned by royal charter*/ which were re2i*ed -ro, ti,e to ti,e1
Each charter pro2ided -or a *hare capital/ -o+rE-i-th o- which were pri2ately *+b*cribed
and the re*t owned by the pro2incial .o2ern,ent1 The ,e,ber* o- the board o- director*/
which ,ana.ed the a--air* o- each ban0/ were ,o*tly proprietary director* repre*entin.
the lar.e E+ropean ,ana.in. a.ency ho+*e* in India1 The re*t were .o2ern,ent
no,inee*/ in2ariably ci2il *er2ant*/ one o- who, wa* elected a* the pre*ident o- the
board1
B$*&!e**
The b+*ine** o- the ban0* wa* initially con-ined to di*co+ntin. o- bill* o- e6chan.e or
other ne.otiable pri2ate *ec+ritie*/ 0eepin. ca*h acco+nt* and recei2in. depo*it* and
i**+in. and circ+latin. ca*h note*1 8oan* were re*tricted to R*1one la0h and the period o-
acco,,odation con-ined to three ,onth* only1 The *ec+rity -or *+ch loan* wa* p+blic
*ec+ritie*/ co,,only called Co,pany<* Paper/ b+llion/ trea*+re/ plate/ jewel*/ or .ood*
<not o- a peri*hable nat+re< and no intere*t co+ld be char.ed beyond a rate o- twel2e per
cent1 8oan* a.ain*t .ood* li0e opi+,/ indi.o/ *alt woollen*/ cotton/ cotton piece .ood*/
,+le twi*t and *il0 .ood* were al*o .ranted b+t *+ch -inance by way o- ca*h credit*
.ained ,o,ent+, only -ro, the third decade o- the nineteenth cent+ry1 All co,,oditie*/
incl+din. tea/ *+.ar and j+te/ which be.an to be -inanced later/ were either pled.ed or
hypothecated to the ban01 !e,and pro,i**ory note* were *i.ned by the borrower in
-a2o+r o- the .+arantor/ which wa* in t+rn endor*ed to the ban01 8endin. a.ain*t *hare*
o- the ban0* or on the ,ort.a.e o- ho+*e*/ land or other real property wa*/ howe2er/
-orbidden1
Indian* were the principal borrower* a.ain*t depo*it o- Co,pany<* paper/ while the
b+*ine** o- di*co+nt* on pri2ate a* well a* *alary bill* wa* al,o*t the e6cl+*i2e
,onopoly o- indi2id+al* E+ropean* and their partner*hip -ir,*1 '+t the ,ain -+nction o-
1=

the three ban0*/ a* -ar a* the .o2ern,ent wa* concerned/ wa* to help the latter rai*e loan*
-ro, ti,e to ti,e and al*o pro2ide a de.ree o- *tability to the price* o- .o2ern,ent
*ec+ritie*1
Ma<"r %ha!(e &! the %"!#&t&"!*
A ,ajor chan.e in the condition* o- operation o- the 'an0* o- 'en.al/ 'o,bay and
Madra* occ+rred a-ter 1B>F1 &ith the pa**in. o- the Paper C+rrency Act o- 1B>1/ the
ri.ht o- note i**+e o- the pre*idency ban0* wa* aboli*hed and the @o2ern,ent o- India
a**+,ed -ro, 1 March 1B>3 the *ole power o- i**+in. paper c+rrency within 'riti*h
India1 The ta*0 o- ,ana.e,ent and circ+lation o- the new c+rrency note* wa* con-erred
on the pre*idency ban0* and the @o2ern,ent +ndertoo0 to tran*-er the Trea*+ry balance*
to the ban0* at place* where the ban0* wo+ld open branche*1 %one o- the three ban0* had
till then any branche* 4e6cept the *ole atte,pt and that too a *hortEli2ed one by the 'an0
o- 'en.al at Mir?apore in 1B7=5 altho+.h the charter* had .i2en the, *+ch a+thority1 '+t
a* *oon a* the three pre*idency band* were a**+red o- the -ree +*e o- .o2ern,ent
Trea*+ry balance* at place* where they wo+ld open branche*/ they e,bar0ed on branch
e6pan*ion at a rapid pace1 'y 1BA>/ the branche*/ a.encie* and *+b a.encie* o- the three
pre*idency ban0* co2ered ,o*t o- the ,ajor part* and ,any o- the inland trade centre* in
India1 &hile the 'an0 o- 'en.al had ei.hteen branche* incl+din. it* head o--ice/ *ea*onal
branche* and *+b a.encie*/ the 'an0* o- 'o,bay and Madra* had -i-teen each1
The e&(ht 7a!'&!( *$7*&#&ar&e* are5
1EState 'an0 o- 'i0aner and Haip+r 4S''H5
3EState 'an0 o- Hyderabad 4S'H5
7EState 'an0 o- India 4S'I5
:EState 'an0 o- Indore 4S'IR5
;EState 'an0 o- My*ore 4S'M5
>EState 'an0 o- Patiala 4S'P5
AEState 'an0 o- Sa+ra*htra 4S'S5
BEState 'an0 o- Tra2ancore 4S'T5
3F

HISTORY
Pre*&#e!%) Ba!'* A%t
The pre*idency 'an0* Act/ which ca,e into operation on 1 May 1BA>/ bro+.ht the three
pre*idency ban0* +nder a co,,on *tat+te with *i,ilar re*triction* on b+*ine**1 The
proprietary connection o- the @o2ern,ent wa*/ howe2er/ ter,inated/ tho+.h the ban0*
contin+ed to hold char.e o- the p+blic debt o--ice* in the three pre*idency town*/ and the
c+*tody o- a part o- the .o2ern,ent balance*1 The Act al*o *tip+lated the creation o-
Re*er2e Trea*+rie* at Calc+tta/ 'o,bay and Madra* into which *+,* abo2e the *peci-ied
,ini,+, balance* pro,i*ed to the pre*idency ban0* at only their head o--ice* were to be
lod.ed1 The @o2ern,ent co+ld lend to the pre*idency ban0* -ro, *+ch Re*er2e
Trea*+rie* b+t the latter co+ld loo0 +pon the, ,ore a* a -a2o+r than a* a ri.ht1
Ba!' ", Ma#ra*
The deci*ion o- the @o2ern,ent to 0eep the *+rpl+* balance* in Re*er2e Trea*+rie*
o+t*ide the nor,al control o- the pre*idency ban0* and the connected deci*ion not to
.+arantee ,ini,+, .o2ern,ent balance* at new place* where branche* were to be
opened e--ecti2ely chec0ed the .rowth o- new branche* a-ter 1BA>1 The pace o-
e6pan*ion witne**ed in the pre2io+* decade -ell *harply altho+.h/ in the ca*e o- the 'an0
o- Madra*/ it contin+ed on a ,ode*t *cale a* the pro-it* o- that ban0 were ,ainly deri2ed
-ro, trade di*per*ed a,on. a n+,ber o- port town* and inland centre* o- the pre*idency1
India witne**ed rapid co,,erciali*ation in the la*t G+arter o- the nineteenth cent+ry a* it*
railway networ0 e6panded to co2er all the ,ajor re.ion* o- the co+ntry1 %ew irri.ation
networ0*
in Madra*/ P+njab and Sind accelerated the proce** o- con2er*ion o- *+b*i*tence crop*
into ca*h crop*/ a portion o- which -o+nd it* way into the -orei.n ,ar0et*1 Tea and co--ee
plantation* tran*-or,ed lar.e area* o- the ea*tern Terai*/ the hill* o- A**a, and the
%il.iri* into re.ion* o- e*tate a.ric+lt+re par e6cellence1 All the*e re*+lted in the
e6pan*ion o- India<* international trade ,ore than *i6E-old1 The three pre*idency ban0*
were both bene-iciarie* and pro,oter* o- thi* co,,erciali*ation proce** a* they beca,e
in2ol2ed in the -inancin. o- practically e2ery tradin./ ,an+-act+rin. and ,inin. acti2ity
in the *+bEcontinent1 &hile the 'an0* o- 'en.al and 'o,bay were en.a.ed in the
31

-inancin. o- lar.e ,odern ,an+-act+rin. ind+*trie*/ the 'an0 o- Madra* went into the
-inancin. o- lar.e ,odern ,an+-act+rin. ind+*trie*/ the 'an0 o- Madra* went into the
-inancin. o- *,allE*cale ind+*trie* in a way which had no parallel el*ewhere1 '+t the
three ban0* were ri.oro+*ly e6cl+ded -ro, any b+*ine** in2ol2in. -orei.n e6chan.e1 %ot
only wa* *+ch b+*ine** con*idered ri*0y -or the*e ban0*/ which held .o2ern,ent
depo*it*/ it wa* al*o -eared that the*e ban0* enjoyin. .o2ern,ent patrona.e wo+ld o--er
+n-air co,petition to the e6chan.e ban0* which had by then arri2ed in India1 Thi*
e6cl+*ion contin+ed till the creation o- the Re*er2e 'an0 o- India in 1=7;1
AWARDS
Chair,an Mr1 O P 'hatt/ ha* been declared the C%%EI'% Indian o- the "ear 3FFA in the
'+*ine** cate.ory ahead o- Vijay Mallya and the A,bani* 1
A-ter ,+ch deliberation/ the j+ry 2oted -or the ,a2eric0 ban0er Shri O P 'hatt/ at the
hel, o- the State 'an0 o- India *ince 3FF>/ a* the C%%EI'%<* b+*ine**,an o- the "ear1
He ha* been credited with doin. the i,po**ible1
Shri 'hatt too0 o2er at a ti,e when India<* lar.e*t ban0 wa* -aced with to+.h
co,petition -ro, -a*t .rowin. pri2ate player*1 The ,a,,oth challen.e wa* to arre*t
S'I<* -allin. ,ar0et *hare/ rai*e -+nd* -or e6pan*ion and loo0 -or new a2en+e* o- .rowth1
In another darin. ,o2e/ Shri 'hatt ha* *tarted the ,er.er o- all *e2en a**ociate ban0*
with the parent ban01 Once the ,er.er i* co,pleted/ the co,bined entity will ha2e a
balance *heet o- o2er B la0h crore r+pee*/ and a co+ntrywide networ0 o- 1:/FFF branche*
E eno+.h to ta0e on .lobal ban0* loo0in. to penetrate the Indian ,ar0et a-ter 3FF=1
'hatt i* the only S'I chair,an *ince liberali*ation who ha* been .i2en a -i2e year ter,1
He i* *ettin. hi,*el- *o,e to+.h tar.et*1 One o- the tar.et* i* to +p S'I<* ,ar0et *hare by
one per cent e2ery year1 nder hi, the ban0 i* al*o loo0in. at new b+*ine** *trea,* li0e
.eneral in*+rance/ pen*ion -+nd* D ,obile ban0in.1
It<* a 2i*ion to ,a0e S'I a tr+ly .lobal ban0 and the ,an behind that drea, i* C%%E
I'%<* Indian o- the "ear in the '+*ine** cate.ory -or 3FFA1
33

BEST BANK OF THE YEAR -==>
State 'an0 o- India wa* adj+d.ed the 'e*t 'an0 o- the "ear 3FFB by 8ondon ba*ed JThe
'an0er$ ,a.a?ine o- #inancial Ti,e* @ro+p1
Thi* award i* decided on the ba*i* o- inten*i2e re*earch and analy*i* o- -inancial* and
per-or,ance o- pro,inent 'an0*/ and clearly S'I e,er.ed a* the winner D 'e*t 'an0 in
the co+ntry1
Thi* year$* Ann+al 'an0 o- the year 3FFB award* pre*entation wa* held at the 'allroo,
o- The !orche*ter Hotel/ 8ondon on 3> o- %o2e,ber 3FFB in an i,pre**i2e cere,ony
th
attended by CEO* D Head* o- co,,ercial 'an0* -ro, o2er 11> co+ntrie*
-.- PRODUCTS AND SERVICES PROVIDED BY SBI
Sa2in.* Acco+nt*
C+rrent Acco+nt*
#i6ed !epo*it*
L"a!*
Per*onal 8oan*
Ho,e 8oan*
Two &heeler 8oan*
%ew Car 8oan*
*ed Car 8oan*
O2erdra-t A.ain*t Car
E6pre** 8oan*
@old 8oan
Ed+cational 8oan
8oan A.ain*t Sec+ritie*
8oan A.ain*t Property
8oan* A.ain*t Rental Recei2able*
Car#*
37

Credit Card*
!ebit Card*
A%%e** Y"$r Ba!'
%et'an0in.
ATM
-.3 SWOT a!a.)*&*5
Stre!(th*5
.BRAND NAMEC S'I 'an0 ha* earned a rep+tation in the ,ar0et o2er the
period o- ti,e4'ein. the olde*t ban0 in India tracin. hi*tory bac0 to 1BF>5
-.Mar'et Lea#erC S'I i* ran0ed at 7BF in 3FFB #ort+ne @lobal ;FF li*t/ and
ran0ed 31= in 3FFB #orbe* @lobal 3FFF1 &ith an a**et ba*e o- K13> billion and it*
reach/ it i* a re.ional ban0in. behe,oth1
3.W&#e D&*tr&7$t&"! Net;"r'C E6cellent penetration in the co+ntry with ,ore
than 1FFFF core branche* and ,ore than ;1FF branche* o- a**ociate ban0*
4*+b*idiarie*51
6. D&0er*&,&e# P"rt,".&"C S'I 'an0 ha* all the prod+ct* +nder it* belt/ which help
it to e6tend the relation*hip with e6i*tin. c+*to,er1 S'I 'an0 ha* +,brella o-
prod+ct* to o--er their c+*to,er*/ i- once c+*to,er ha* relation*hip with the ban01
So,e Prod+ct*/ which S'I 'an0 i* o--erin. areC Retail 'an0in. '+*ine** 'an0in.
Merchant E*tabli*h,ent Ser2ice* 4E!C Machine5 Per*onal loan* D Car loan*
In*+rance Ho+*in. 8oan*
@o2ern,ent OwnedC @o2ern,ent own* >FI *ta0e in S'I1 Thi* .i2e* S'I an
ed.e o2er pri2ate ban0* in ter,* o- c+*to,er *ec+rity1
?. L"; Tra!*&t&"! C"*t*ES'I o--er* 2ery low tran*ition co*t* which attract* *,all
c+*to,er*1
Wea'!e**e*5
11The e6i*tin. hierarchical ,ana.e,ent *tr+ct+re o- the ban0/ altho+.h *tren.th
in *o,e re*pect*/ i* a barrier to chan.e1
3:

31Tho+.h S'I card* are the 3nd lar.e*t player in the credit card ind+*try/ it ha*
the hi.he*t non per-or,in. a**et* 4%PA*5 in the ind+*try/ which *tand o+t to be at
1>13B I 4!ec 3FFA51
71 M"#er!&*at&"!C S'I la.* with re*pect to pri2ate player* in ter,* o-
,oderni*ation o- it* proce**e*/ in-ra*tr+ct+re/ centrali*ation/ etc1
Opp"rt$!&t&e*5
. Mer(er ", a**"%&ate 7a!'* ;&th SBI5 Mer.er o- all the a**ociate ban0* 4li0e
S'H/ S'M/ etc5 into S'I will create a ,e.a ban0 which *trea,line* operation*
and +nloc0* 2al+e1
31 Plannin. to add 3FFF branche* and 7FFF ATM* in 3FFBE3FF=1 Thi* will -+rther
increa*e it* reach1
71 Increa*in. trade and b+*ine** relation* and a lar.e n+,ber o- e6patriate
pop+lation* o--er* a .reat opport+nity to e6pand on -orei.n *oil1
Threat*5
. A#0e!t ", MNC 7a!'*C 8ar.e n+,ber* o- M%C ban0* are ,+*hroo,in. in
the Indian ,ar0et d+e to the -riendly policie* adopted by the .o2ern,ent1 Thi*
can increa*e the le2el o- co,petition and pro2e a potential threat -or the ,ar0et
*hare o- S'I ban01
31 Con*+,er e6pectation* ha2e increa*ed ,any -old* in la*t -ew year* and the
ban0 ha* not been re*pon*i2e eno+.h to ,eet the, on ti,e1
71 Pri2ate ban0* ha2e *tarted 2ent+rin. into the r+ral and *e,iE+rban *ector/ which
+*ed to be the ba*tion o- the State 'an0 and other PS ban0*
:1 E+p.")ee Str&'eC There wa* an e,ployee *tri0e in the year 3FF> which
di*r+pted S'I$* acti2itie*1 Thi* can be repeated in the -+t+re1
-.6 O0er0&e; ", HDFC BANK
H!#C 'an0 be.an operation* in 1==; with a *i,ple ,i**ionC to be a L&orldEcla** Indian
'an0L1 They reali?ed that only a *in.leE,inded -oc+* on prod+ct G+ality and *er2ice
e6cellence wo+ld help the, to .et there1
3;

H!#C 'an0/ one a,on.*t the -ir*t* o- the new .eneration/ techE*a22y co,,ercial ban0*
o- India/ wa* *et +p in a+.+*t 1==; a-ter the Re*er2e 'an0 o- India allowed *ettin. +p o-
'an0* in the pri2ate *ector1 The 'an0 wa* pro,oted by the Ho+*in. !e2elop,ent
#inance Corporation 8i,ited/ a pre,ier ho+*in. -inance co,pany 4*et +p in 1=AA5 o-
India1 %et Pro-it -or the year ended March 71/ 3FF> wa* +p 7F1BI to R* BAF1B crore*1
Bra!%h !et;"r'
C+rrently 43FFA5/ H!#C 'an0 ha* ;B7 branche* located in 3>7 citie* o- India/ and all
branche* o- the ban0 are lin0ed on an online realEti,e ba*i*1 The ban0 o--er* ,any
inno2ati2e prod+ct* D *er2ice* to indi2id+al*/ corporate*/ tr+*t*/ .o2ernn,ent*/
partner*hip*/ -inancial in*tit+tion*/ ,+t+al -+nd*/ in*+rance co,panie*1 The ban0 al*o ha*
o2er 1:A1 ATM*1 In the ne6t -ew ,onth the n+,ber o- branche* and ATM* *ho+ld .o +p
*+b*tantially1
Re%"(!&t&"!
O2er a decade o- it* operation*/ H!#C 'an0 ha* been reco.ni?ed/ rated and awarded by
a n+,ber o- or.ani?ation*/ which incl+de*C 'e*t !o,e*tic 'an0 in India in The A**et
Triple A Co+ntry Award* 3FF;/ 3FF: and 3FF71 Co,pany o- the "ear) Award in The
Econo,ic Ti,e* Award* -or Corporate E6cellence 3FF:EF;1
A*ia,oney<* Award* -or 'e*t !o,e*tic Co,,ercial 'an0 a* well a* 'e*t Ca*h
Mana.e,ent 'an0 E India in 3FF;1 The A*ian 'an0er E6cellence in Retail 'an0in. Ri*0
Mana.e,ent Award in India -or 3FF:1 #inance A*ia 'e*t 'an0 E India) in 3FF;/ L'e*t
!o,e*tic Co,,ercial 'an0 M India) in 1===/ 3FFF and 3FF1 re*pecti2ely and 'e*t
8ocal 'an0 M India) in 3FF3 and 3FF71
'+*ine** Today 'e*t 'an0 in India) in 3FF7 and 3FF:1 'e*t O2erall
8ocal9!o,e*tic 'an0 India) in the Corporate Ca*h Mana.e,ent Poll cond+cted by
A*ia,oney ,a.a?ine1 Selected by '+*ine** &orld a* Lone o- India<* Mo*t Re*pected
Co,panie*L a* part o- The '+*ine** &orld Mo*t Re*pected Co,pany Award* 3FF:1 In
3FF:/ #orbe* @lobal na,ed H!#C 'an0 in it* li*tin. o- 'e*t +nder a 'illion/ 1FF 'e*t
S,aller Si?e Enterpri*e* in A*ia9Paci-ic and E+rope1 In 3FF:/ H!#C 'an0 won the
3>

award -or Operational E6cellence in Retail #inancial Ser2ice*) EIndia a* part o- the
A*ian 'an0er Award* 3FF71 In 3FF7/ #orbe* @lobal na,ed H!#C 'an0 in it* ran0in. o-
'e*t nder a 'illion/ 3FF 'e*t S,all Co,panie* -or 3FF7)1 The #inancial E6pre**
na,ed H!#C 'an0 the 'e*t %ew Pri2ate Sector 'an0 3FF7) in the #EEErn*t D "o+n.
'e*t 'an0* S+r2ey 3FF71
O+tloo0 Money na,ed H!#C 'an0 the 'e*t 'an0 in the Pri2ate Sector) -or the year
3FF71 %ASSCOM and econo,icti,e*1co, ha2e na,ed H!#C 'an0 the J'e*t IT *er in
'an0in.$ at the IT *er* Award* 3FF71
E+ro,oney ,a.a?ine .a2e H!#C 'an0 the award -or L'e*t 'an0 M India) in 1===/
'e*t !o,e*tic 'an0) in India in 3FFF/ and 'e*t 'an0 in India) in 3FF1 and 3FF31
A*ia,oney ,a.a?ine ha* na,ed +* 'e*t Co,,ercial 'an0 in India 3FF3) #or it* +*e o-
in-or,ation technolo.y/ H!#C 'an0 ha* been reco.ni?ed a* a Co,p+terworld Honor*
8a+reate) and awarded the 31*t Cent+ry Achie2e,ent Award in 3FF3 -or #inance/
In*+rance D Real E*tate cate.ory by Co,p+terworld/ Inc1/ SA1 It* technolo.y initiati2e
ha* been incl+ded a* a ca*e *t+dy in their online .lobal archi2e*1 '+*ine** India na,ed
H!#C 'an0 India$* 'e*t 'an0) in 3FFF1 In 3FFF/ #orbe* @lobal na,ed H!#C 'an0 in
it* li*t o- The 7FF 'e*t S,all Co,panie*) in the world and a* one o- the 3F -or 3FF1)
be*t *,all co,panie* in the world1
Pr",&.e
The Ho+*in. !e2elop,ent #inance Corporation 8i,ited 4H!#C5 wa* a,on.*t
the -ir*t to recei2e an <in principle< appro2al -ro, the Re*er2e 'an0 o- India 4R'I5 to *et
+p a ban0 in the pri2ate *ector/ a* part o- the R'I<* liberali*ation o- the Indian 'an0in.
Ind+*try in 1==:1 The ban0 wa* incorporated in A+.+*t 1==: in the na,e o- <H!#C 'an0
8i,ited</ with it* re.i*tered o--ice in M+,bai/ India1 H!#C 'an0 co,,enced operation*
a* a Sched+led Co,,ercial 'an0 in Han+ary 1==;1
B$*&!e** ,"%$*
H!#C 'an0<* ,i**ion i* to be a &orldECla** Indian 'an01 The objecti2e i* to
b+ild *o+nd c+*to,er -ranchi*e* acro** di*tinct b+*ine**e* *o a* to be the pre-erred
pro2ider o- ban0in. *er2ice* -or tar.et retail and whole*ale c+*to,er *e.,ent*/ and to
achie2e healthy .rowth in pro-itability/ con*i*tent with the ban0<* ri*0 appetite1 The ban0
i* co,,itted to ,aintain the hi.he*t le2el o- ethical *tandard*/ pro-e**ional inte.rity/
3A

corporate .o2ernance and re.+latory co,pliance1 H!#C 'an0<* b+*ine** philo*ophy i*
ba*ed on -o+r core 2al+e* Operational E6cellence/ C+*to,er #oc+*/ Prod+ct 8eader*hip
and People
C"rp"rate Deta&.*
The H"$*&!( De0e."p+e!t F&!a!%e C"rp"rat&"! L&+&te# 4 HDFC 5 wa* a,on.*t the
-ir*t to recei2e an <in principle< appro2al -ro, the Re*er2e 'an0 o- India 4R'I5 to *et +p a
ban0 in the pri2ate *ector/ a* part o- the R'I<* liberali?ation o- the Indian 'an0in.
Ind+*try in 1==:1 Incorporated in A+.+*t 1==: a* HDFC Ba!' L&+&te# / a* o- !ece,ber
71/ 3FF>/ the ban0 had a India networ0 o- >B: branche* in 71> citie* in India and o2er
1>>7 ATM<*1
A%t&0&t&e*
H!#C 'an0 ,ainly pro2ide* three 0ind* o- ban0in. *er2ice*C
Per*onal 'an0in.
%RI 'an0in.
&hole*ale 'an0in.
The -ollowin. are the prod+ct* and *er2ice* pro2ided by the H!#C ban0
H!#C 'an0 pro2ide* loan* li0e Per*onal 8oan* / Ho,e 8oan* / Ed+cational
8oan* / Two &heeler 8oan* / %ew car 8oan*/ *ed Car 8oan*/ O2erdra-t A.ain*t
Car/ E6pre** 8oan*/ etc1
H!#C 'an0 pro2ide* Credit/ !ebit and Prepaid Card* to help yo+ ,eet yo+r
-inancial objecti2e*1
H!#C 'an0 pro2ide* -acilitie* li0e M+t+al #+nd* / In*+rance / @eneral D Health
In*+rance/ 'ond* / #inancial Plannin./ (nowled.e Center/ EG+itie* D
!eri2ati2e*/ M+dra @old bar1
I- yo+ need to deal in -orei.n c+rrency and 0eep tab* on e6chan.e rate* e2ery now and
then/ tran*-er -+nd* to India/ ,a0e pay,ent* etc1/ H!#C 'an0 ha* a ran.e o- prod+ct*
and *er2ice* that yo+ can choo*e -ro, to tran*act *,oothly/ e--iciently and in a ti,ely
,anner1
&ith H!#C 'an0 <* pay,ent *er2ice*/ yo+ can bid .oodbye to G+e+e* and paper wor01
H!#C <* ran.e o- pay,ent option* ,a0e it ea*y to pay -or a 2ariety o- +tilitie* and
*er2ice*1
3B

H!#C 'an0 ha* de*i.ned two pro.ra,* to ,a0e ban0in. ea*ier -or the c+*to,er* and
they are
H!#C 'an0 Pre-erred Pro.ra,,e
H!#C 'an0 Cla**ic Pro.ra,,e1
H!#C 'an0 o--er* Pri2ate 'an0in. *er2ice* to hi.h net worth indi2id+al* and
in*tit+tion*1
H!#C 'an0 o--er* yo+ G+ic0/ econo,ical and con2enient option* to re,it and tran*-er
-+nd* to India1
Corporate 'an0in. re-lect* H!#C 'an0 <* *tren.th* in pro2idin. o+r corporate client* in
India/ a wide array o- co,,ercial/ tran*actional and electronic ban0in. prod+ct*1
H!#C 'an0 act* a* an acti2e ,edi+, between the .o2ern,ent and the c+*to,er* by
,ean* o- 2ario+* *er2ice*1
Per,"r+a!%e
Profit & Loss Account : Year ended March 31, 2007
#or the year ended March 71/ 3FFA/ the 'an0 earned total inco,e o- R*1B/:F;17 crore* a*
a.ain*t R*1;/;==17 crore* in the corre*pondin. period o- the pre2io+* year1 %et re2en+e*
4net intere*t inco,e pl+* other inco,e5 -or the year ended March 71/ 3FFA were
R*1;/33;1B crore*/ +p :31:I o2er R*17/>>=1B crore* -or the year ended March 71/ 3FF>1
%et Pro-it -or year ended March 71/ 3FFA wa* R*11/1:11; crore*/ +p 7111I/ o2er the
corre*pondin. year ended March 71/ 3FF>1
Or(a!&9at&"!
Mr1 Aditya P+ri i* the Mana.in. !irector o- H!#C 'an0 .1
C"!ta%t Deta&.*
Re.i*tered addre**C H!#C 'an0 Ho+*e /
Senapati 'apat Mar./ 8ower Parel/
M+,bai E :FF F17/
India1
3=

HDFC BANK AND CENTURION BANK OF PUN4AB MERGER
Mer.er o- Cent+rion 'an0 o- P+njab with H!#C 'an0 at *hare *wap ratio o- 1C3=1 The
Sche,e o- A,al.a,ation en2i*a.e* a *hare e6chan.e ratio o- one *hare o- H!#C 'an0
-or twenty nine *hare* o- Cent+rion 'an0 o- P+njab1
The co,bined entity wo+ld ha2e a nationwide networ0 o- 1/1:B branche* 4the lar.e*t
a,on.*t pri2ate *ector 'an0*5 a *tron. depo*it ba*e o- aro+nd R*1 1/3FF billion and net
ad2ance* o- aro+nd R*1 B;F billion1 The balance *heet *i?e o- the co,bined entity wo+ld
be o2er R*1 1/;FF billion1
The *hare e6chan.e ratio appro2ed by the re*pecti2e 'oard* wa* ba*ed on the
reco,,endation* ,ade by M9* !alal D Shah/ Chartered Acco+ntant*/ and Ern*t D
"o+n. Pri2ate 8td1 who acted a* independent joint 2al+er* to the tran*action1
The dra-t Sche,e o- A,al.a,ation/ the d+e dili.ence report and any other ,atter* a*
reG+ired will be con*idered by the 'oard o- H!#C 'an0 in their ,eetin. *ched+led on
#ebr+ary 3B/ 3FFB1 The 'oard o- C'OP will ,eet on the *a,e day in order to con*ider
the dra-t Sche,e o- A,al.a,ation and any other ,atter* a* reG+ired1
H!#C 'an0$* 'oard noted that in the e2ent o- the ,er.er o- Cent+rion 'an0 o- P+njab
with H!#C 'an0 bein. appro2ed at it* ,eetin. on #ebr+ary 3B/ 3FFB/ it wo+ld con*ider
,a0in. a pre-erential o--er to it* pro,oter Ho+*in. !e2elop,ent #inance Corporation
4H!#C5/ to enable H!#C to ,aintain it* percenta.e *hareholdin. in the ,er.ed entity1
H!#C 'an0$* 'oard al*o noted that Mr1 Rana Talwar ha* been o--ered a *eat on the
'oard a* non e6ec+ti2e director and Mr1 Shailendra 'handari will be in2ited to join the
'oard a* E6ec+ti2e !irector1
Co,,entin. on the propo*ed ,er.er/ Mr1 !eepa0 Pare0h/ Chair,an/ H!#C *aid/ &e
were a,on.*t the -ir*t to .et a ban0in. licen*e/ the -ir*t to do a ,er.er in the pri2ate
*ector with Ti,e* 'an0 in 1===/ and now i- thi* deal happen*/ it wo+ld be the lar.e*t
,er.er in the pri2ate *ector ban0in. *pace in India1 H!#C 'an0 wa* loo0in. -or an
appropriate ,er.er opport+nity that wo+ld add *cale/ .eo.raphy and e6perienced *ta-- to
it* -ranchi*e1 Thi* opport+nity aro*e and we tho+.ht it i* an attracti2e ro+te to *+pple,ent
7F

H!#C 'an0$* or.anic .rowth1 &e belie2e that Cent+rion 'an0 o- P+njab wo+ld be the
ri.ht -it in ter,* o- c+lt+re/ *trate.ic intent and approach to b+*ine**1
D&*tr&7$t&"! !et;"r'
H!#C 'an0 i* headG+artered in M+,bai1 The 'an0 at pre*ent ha* an en2iable
networ0 o- o2er >B: branche* *pread o2er 71> citie* acro** India1 All branche* are lin0ed
on an online realEti,e ba*i*1 C+*to,er* in o2er 13F location* are al*o *er2iced thro+.h
Telephone 'an0in.1 The 'an0<* e6pan*ion plan* ta0e into acco+nt the need to ha2e a
pre*ence in all ,ajor ind+*trial and co,,ercial centre* where it* corporate c+*to,er* are
located a* well a* the need to b+ild a *tron. retail c+*to,er ba*e -or both depo*it* and
loan prod+ct*1 'ein. a clearin.9*ettle,ent ban0 to 2ario+* leadin. *toc0 e6chan.e*/ the
'an0 ha* branche* in the centre* where the %SE9'SE ha2e a *tron. and acti2e ,e,ber
ba*e1
The 'an0 al*o ha* a networ0 o- abo+t o2er 1/A:F networ0ed ATM* acro** the*e citie*1
Moreo2er/ H!#C 'an0<* ATM networ0 can be acce**ed by all do,e*tic and international
Vi*a9Ma*terCard/ Vi*a Electron9Mae*tro/ Pl+*9Cirr+* and A,erican E6pre**
Credit9Char.e cardholder*1
H!#C 'an0 operate* in a hi.hly a+to,ated en2iron,ent in ter,* o- in-or,ation
technolo.y and co,,+nication *y*te,*1 All the ban0<* branche* ha2e online
connecti2ity/ which enable* the ban0 to o--er *peedy -+nd* tran*-er -acilitie* to it*
c+*to,er*1 M+ltiEbranch acce** i* al*o pro2ided to retail c+*to,er* thro+.h the branch
networ0 and A+to,ated Teller Machine*1 The 'an0 ha* ,ade *+b*tantial e--ort* and
in2e*t,ent* in acG+irin. the be*t technolo.y a2ailable internationally/ to b+ild the
in-ra*tr+ct+re -or a world cla** ban01 In ter,* o- *o-tware/ the Corporate 'an0in.
b+*ine** i* *+pported by #le6c+be/ while the Retail 'an0in. b+*ine** by #inware/ both
-ro, iE-le6 Sol+tion* 8td1 The *y*te,* are open/ *caleable and webEenabled1
The 'an0 ha* prioriti?ed it* en.a.e,ent in technolo.y and the internet a* one o- it* 0ey
.oal* and ha* already ,ade *i.ni-icant pro.re** in webEenablin. it* core b+*ine**e*1 In
each o- it* b+*ine**e*/ the 'an0 ha* *+cceeded in le2era.in. it* ,ar0et po*ition/ e6perti*e
and technolo.y to create a co,petiti2e ad2anta.e and b+ild ,ar0et *hare1
AWARDS
71

-==>
C%%EI'%
@I!#&a! ", the Year 8B$*&!e**:@
%a**co, IT *er Award 3FFB
@Be*t IT A#"pt&"! &! the Ba!'&!( Se%t"r@
'+*ine** India
@Be*t Ba!' -==>@
#orbe* A*ia
Fa7 ?= %"+pa!&e* &! A*&a Pa%&,&%
A*ian 'an0er E6cellence in Retail #inancial Ser2ice*
Be*t Reta&. Ba!' -==>
A*ia,oney
Be*t ."%a. Ca*h Ma!a(e+e!t Ba!' A;ar# 0"te# 7) C"rp"rate*
Micro*o-t D Indian E6pre** @ro+p
Se%$r&t) Strate(&*t A;ar# -==>
&orld Trade Center Award o- hono+r
F"r "$t*ta!#&!( %"!tr&7$t&"! t" &!ter!at&"!a. tra#e *er0&%e*
'+*ine** TodayEMonitor @ro+p *+r2ey
O!e ", I!#&a@* AM"*t I!!"0at&0e C"+pa!&e*A
#inancial E6pre**EErn*t D "o+n. Award
Be*t Ba!' A;ar# &! the Pr&0ate Se%t"r %ate("r)
@lobal HR E6cellence Award* E A*ia Paci-ic HRM
Con.re**C
73

@E+p.")er Bra!# ", the Year -==B /-==>@ A;ar# / F&r*t R$!!er $pC D +a!) +"re
'+*ine** Today
@Be*t Ba!'@ A;ar#
-==B
!+n D 'rad*treet M A,erican E6pre** Corporate 'e*t 'an0 Award 3FFA
@C"rp"rate Be*t Ba!'@ A;ar#
The 'o,bay Stoc0 E6chan.e and %a**co, #o+ndation<* '+*ine** -or Social
Re*pon*ibility Award* 3FFA
@Be*t C"rp"rate S"%&a. Re*p"!*&7&.&t) Pra%t&%e@ A;ar#
O+tloo0 Money D %!TV Pro-it
Be*t Ba!' A;ar# &! the Pr&0ate *e%t"r %ate("r)
The A*ian 'an0er E6cellence in Retail #inancial Ser2ice* Award*
Be*t Reta&. Ba!' &! I!#&a
A*ian 'an0er
O$r Ma!a(&!( D&re%t"r A#&t)a P$r& ;&!* the Lea#er*h&p A%h&e0e+e!t A;ar# ,"r
I!#&a

-.? PRODUCTS AND SERVICES PROVIDED BY HDFC BANK
Sa0&!(* A%%"$!t*
Re.+lar Sa2in.* Acco+nt
Sa2in.* Pl+* Acco+nt
77

Sa2in.*Ma6 Acco+nt
%o #rill* Acco+nt
Retail Tr+*t Acco+nt
Salary Acco+nt*
Payroll
Cla**ic
Re.+lar
Pre,i+,
!e-ence Salary Acco+nt
(id<* Ad2anta.e Acco+nt
Pen*ion Sa2in. 'an0 Acco+nt
#a,ily Sa2in.* @ro+p
C$rre!t A%%"$!t*
Pl+* C+rrent Acco+nt
Trade C+rrent Acco+nt
Pre,i+, C+rrent Acco+nt
Re.+lar C+rrent Acco+nt
Rei,b+r*e,ent C+rrent Acco+nt
R#C E !o,e*tic Acco+nt
F&2e# Dep"*&t*
Re.+lar #i6ed !epo*it
S+per Sa2er Acco+nt
SweepEin Acco+nt
L"a!*
Per*onal 8oan*
Ho,e 8oan*
Two &heeler 8oan*
%ew Car 8oan*
*ed Car 8oan*
7:

O2erdra-t A.ain*t Car
E6pre** 8oan*
@old 8oan
Ed+cational 8oan
8oan A.ain*t Sec+ritie*
Car#*
Cre#&t Car#*
Sil2er Credit Card
@old Credit Card
Platin+, Pl+* Credit Card
De7&t Car#*
Ea*yShop International !ebit Card
Ea*yShop @old !ebit Card
Ea*yShop International '+*ine** !ebit Card
A%%e** Y"$r Ba!'
%et'an0in.
Mobile'an0in.
ATM
Phone'an0in.
-.E SWOT a!a.)*&*
STRENGTH
Ri.ht *trate.y -or the ri.ht prod+ct*
- *+perior c+*to,er *er2ice 2* co,petitior*
3 .reat brand i,a.e
6 hi.h de.ree o- c+*to,er *ati*-action
7;

? .ood place to wor0
E lower re*pon*e ti,e with e--icient D e--ecti2e *er2ice
B dedicated wor0 -orce ,a0in. a lon. ter, career in the -ield
WEAKNESSES
11C+*to,er *er2ice *ta-- need trainin.
OPPORTUNITIES
15Pro-it* ,ar.in* will be .ood
35 Co+ld e6tent to o2er*ea* broadly1
75 Co+ld *ee0 better c+*to,er deal*
THREATS
11 8e.i*lation co+ld i,pact
11 .reat ri*0 in2ol2ed
11 2ery hi.h co,petition pre2ailin. in the ind+*try
11 lac0 o- in-ra*tr+ct+re in r+ral area* co+ld con*train
in2e*t,ent1
7>

Chapter 3
3..OB4ECTIVES OF THE STUDY
11To 0now pre-erence o- c+*to,er* re.ardin. p+blic *ector ban0* and pri2ate *ector
ban0*1
31 to analy?e which -acility in-l+ence* the c+*to,er ,o*t while *electin. 'an0/
71 to co,pare the 2ario+* *er2ice* pro2ided by the*e ban0* and
:1to ,a0e aware abo+t the 2ario+* *er2ice* pro2ided by the ban01
3.- SCOPE OF THE PRO4ECT
Per*onal 2i*it to the branche* o- S'I and H!#C ban0* wa* done to collect the -ir*t hand
in-or,ation1 St+dy i* done with the *pecial re-erence to the area/ Cha!#&(arh C&t).
3.3 LITERATURE REVIEW
. De!&*e K. C"!r") in hi* *t+dy titled 4C+*to,er *ati*-action ,ea*+re* in the p+blic
*ectorC what do they tell +*F: atte,pt* to de2i*e c+*to,er *ati*-action ,ea*+re*/
accordin. to hi, there are a n+,ber o- -actor* which can a--ect the interpretation o-
re*+lt* E the nat+re o- the c+*to,er/ *er2ice pro2i*ion/ *er2ice G+ality and/ -or the p+blic
7A

*ector/ the e6tent to which con*+,er *o2erei.nty e6i*t*1 Re*o+rce* ,ay be better directed
toward* *ettin. and ,aintainin. hi.h le2el* o- *tandard o- *er2ice1 Thi* *t+dy addre**e*
the di--ic+ltie* and hi.hli.ht* the co,ple6 nat+re o- a c+*to,er or *er2ice bene-iciary
who can be/ at the *a,e ti,e/ a ta6payer/ 2oter/ recipient o- -inancial bene-it*/ with
e6pectation* o- the p+blic *ector and it* deli2ery a.ent/ yet cannot choo*e another
pro2ider1
-.Harr) N";'aC S"$th;e*ter! O'.ah"+a State U!&0er*&t)C
Na!%) B$##)C S"$th;e*ter! O'.ah"+a State U!&0er*&t)C
R"7ert Ree#erC S"$th;e*ter! O'.ah"+a State U!&0er*&t) a!#
Da!&e. HartC S"$th;e*ter! O'.ah"+a State U!&0er*&t) in their *t+dy titled 4C$*t"+er
re*p"!*e*5 A COMPARATIVE STUDY5 want* to deter,ine 2ario+* 2ariable* which
in-l+ence c+*to,er* o- a bar and .rill1 Thi* co,parati2e analy*i* incl+de* c+*to,er
re*pon*e* with co,pari*on* ,ade to the ,ajor co,petitor<* c+*to,er re*pon*e*/ *t+dent
c+*to,er re*pon*e*/ and re*pon*e* o- a panel o- non c+*to,er* a**e,bled to a**e**
potential c+*to,er re*pon*e*1 Thi* *t+dy indicate* that location can be a *i.ni-icant
deterrent to e6pan*ion o- the c+*to,er ba*e1 The per*onality o- the owner can ha2e a
po*iti2e i,pact on c+*to,er -low1 Analy*i* o- *pendin. pattern* indicate* that -ood and
pool were +nder+tili?ed1 The ,ale9-e,ale ratio wa* a deter,inate o- c+*to,er -low1
3. Da;! Ia%"7$%%&C A+) O*tr"+C Ke!t Gra)*"! in their *t+dy titled4D&*t&!($&*h&!(
Ser0&%e G$a.&t) a!# C$*t"+er Sat&*,a%t&"!5 The V"&%e ", the C"!*$+er5 pre*ent*
two *t+die* that rely on di2er.ent ,ethodolo.ie* to e6a,ine whether or not G+ality and
*ati*-action ha2e di*tinct antecedent ca+*e*/ con*eG+ential e--ect*/ or both 4i1e1/ whether
or not they *ho+ld be con*idered a *in.le con*tr+ct/ or di*tinct/ *eparable con*tr+ct*51
They -oc+* on con*+,er*$ +nder*tandin. and +*e o- the word* quality and satisfaction; in
both *t+die*/ re*pondent* report whether or not they thin0 G+ality and *ati*-action di--er/
7B

and i- *o/ on what di,en*ion* or +nder what circ+,*tance*1 In the -ir*t *t+dy/ they +*e
the G+alitati2e critical incident) techniG+e to elicit *er2ice attrib+te* that are *alient to
re*pondent* when pro,pted to con*ider G+ality and *ati*-action a* di*tinct1 they code the
re*pon*e* to the*e openEended *+r2ey G+e*tion* to e6a,ine whether G+ality can be tea*ed
apart -ro, *ati*-action/ -ro, the re*pondent*$ 4con*+,er*$5 per*pecti2e1 In the *econd
*t+dy/ to trian.+late on the G+alitati2e data/ they e6peri,entally ,anip+lated a n+,ber o-
*er2ice attrib+te* drawn -ro, both the -ir*t *t+dy and -ro, the literat+re to *ee whether or
not they ha2e di--erential i,pact* on j+d.,ent* o- G+ality and *ati*-action1 They did not
pre*+ppo*e that G+ality and *ati*-action di--erNrather/ they a*0ed re*pondent* to ,a0e a
j+d.,ent either o- G+ality or o- *ati*-action/ de-inin. the ter, a* they *aw -it1
:1 A!trea* D Atha!a**"p"$."* in hi* *t+dy titled 8C$*t"+er Sat&*,a%t&"! C$e* T"
S$pp"rt. .Mar'et. .Se(+e!tat&"!. .a!#. .E2p.a&!. .S;&t%h&!(. .Beha0&"r:. e6a,ined the
c+*to,er *ati*-action c+e* in retail ban0in. *er2ice* in @reece1 The *t+dy propo*e* an
in*tr+,ent o- c+*to,er *ati*-action that contain* *er2ice G+ality and *+ch other attrib+te*
a* price/ con2enience/ and inno2ation1 The propo*ed -ra,ewor0 o- c+*to,er *ati*-action
wa* 2eri-ied e,pirically yieldin. -o+r di*tinct -acet* -or b+*ine** c+*to,er* and -i2e -or
indi2id+al c+*to,er*1 The per-or,ance i,plication* o- the c+*to,er *ati*-action
in*tr+,ent are al*o e6plored1 &hat i* *hown i* that c+*to,er *e.,ent*/ in -act/ yield
*tati*tically di--erent *ati*-action *core*/ which 2eri-ie* the ,ana.erial 2al+e o- c+*to,er
*e.,entation practice*1 #inally/ the -acet* o- c+*to,er *ati*-action a* e6planatory c+e*
-or the *witchin. beha2ior o- indi2id+al and b+*ine** c+*to,er* were te*ted *+cce**-+lly1
?. . Re!(a*a+) E.a!(" a!# V&<a)a K$+ar G$#ep in their *t+dy t&t.e#8A C"+parat&0e
St$#) "! the Ser0&%e G$a.&t) a!# C$*t"+er Sat&*,a%t&"! a+"!( Pr&0ateC P$7.&% a!#
F"re&(! Ba!'*:. -oc+*e* on the *er2ice G+ality and c+*to,er *ati*-action a,on. the
pri2ate/ p+blic and -orei.n ban0* in India1 An analy*i* i* carried o+t to e6a,ine the le2el
o- awarene** a,on. c+*to,er* and to identi-y the be*t *ector which pro2ide* G+alitati2e
c+*to,er *er2ice1 Thi* beco,e* rele2ant in the conte6t o- reco,,endation* o- 2ario+*
co,,ittee* con*tit+ted by the @o2ern,ent o- India and the R'I/ -ro, ti,e to ti,e/ to
7=

*+..e*t ,ea*+re* to i,pro2e c+*to,er *er2ice *y*te,* o- the p+blic *ector co,,ercial
ban0* o- India1 A wellE*tr+ct+red G+e*tionnaire i* +*ed to collect the 2iew* o- re*pondent*
acro** the three ban0in. *ector*1 The *+r2ey in*tr+,ent incl+de* 2ario+* di,en*ion*/
pertainin. to the G+ality o- c+*to,er *er2ice* in ter,* o- ban0in. per*onnel/ con2enient
wor0in. ho+r*/ &ebEba*ed *er2ice*/ error -ree 2al+eEadded *er2ice* and e--icient
.rie2ance redre**al ,echani*, etc1 Apart -ro, the ba*ic *tati*tical tool* *+ch a*
,ea*+re* o- central tendency/ The a+thor* al*o +*e O-actor analy*i*< and the OOneEway
Ano2a< cla**i-ication1 The idea behind thi* i* to e6tract the rele2ant -actor* and analy?e
whether there i* any *i.ni-icant di--erence with re*pect to *er2ice G+ality within the three
ban0in. *ector*1 The re*+lt* indicate that the le2el o- awarene** a,on. the c+*to,er*
i,pro2ed *i.ni-icantly d+rin. the *t+dy period1 It i* intere*tin. to note that the re*+lt* are
con*i*tent with the pre2io+* *t+die* cond+cted on c+*to,er *er2ice a*pect*/ and it ha*
been ob*er2ed that the -orei.n and the new .eneration pri2ate *ector ban0* are *er2in.
the c+*to,er* better1 Thi* ha* lar.er i,plication* on the p+blic *ector co,,ercial ban0*
in India with re*pect to c+*to,er *er2ice deli2ery a*pect*1 It i* hi.h ti,e the p+blic *ector
co,,ercial ban0* ,ade e--ort* to re2a,p their approach toward* c+*to,er*/ *o a* to
per-or, better and deri2e co,petiti2e ad2anta.e in the lon. r+n1
3.6 RESEARCH METHODOLOGY
It de*cribe* the data collection ,ethod/ the *a,plin. plan/ the tool* o- in2e*ti.ation/
plannin. and te*tin. o- G+e*tionnaire and the li,itation* o- the *t+dy1 The *t+dy reG+ire*
the data to be collected -ro, two di--erent *o+rce* i1e1 the pri,ary *o+rce and the
*econdary *o+rce1 The pri,ary data i* collected with the help o- *tr+ct+red G+e*tioner*
which i* bein. ,odi-ied D reliable and the *econdary data thro+.h the 2ario+* jo+rnal*/
new*paper* and web*ite*1
Data S"$r%e5
8a: Pr&+ar) Data5 Pri,ary data wa* collected by ,ean* o- G+e*tionnaire*
87 :. Se%"!#ar). .#ataC Secondary data collected by re-errin. to 2ario+* boo0*/
new*paper*/ ,a.a?ine*/ jo+rnal* and internet 4detail* in biblio.raphy5
Re*ear%h De*&(!
:F

Pre*ent *t+dy enG+ired and bro+.ht -orward the re*+lt* concernin. the *et objecti2e*
*peci-ied be-ore which relate* to de*cription o- the *tate o- a--air* a* a re*+lt it clearly
*tate* that it wa* a !ESCRIPTIVE ST!"/ which incl+ded -act -indin. enG+irie* o-
di--erent 0ind*1
Sa+p.&!( De*&(!
U!&0er*e5 / The +ni2er*e wa* -inite in thi* *t+dy/ *ince the pop+lation o- Patiala City i*
certain and can be co+nted1
Sa+p.&!( U!&t5 / The *a,plin. +nit i* an indi2id+al 4nonE*ta-- ,e,ber5 who i* ha2in.
acco+nt in S'I and H!#C 'an0*1
Sa+p.e S&9e5 / The *a,ple *i?e -or the *t+dy wa* AF indi2id+al*/ nonE*ta-- ,e,ber* o-
S'I and H!#C 'an0*/ Chandi.arh O+t o- which 7; belon.* to S'I and 7; belon.* to
H!#C ban01
Sa+p.&!(. .Pr"%e#$re5 ./. !+e to the ti,e and re*o+rce con*traint* the con2enience
*a,plin. techniG+e wa* +*ed1 The indi2id+al* were *elected accordin. to con2enience to
-ill the G+e*tionnaire*1
Re*ear%h I!*tr$+e!t $*e#5 G$e*t&"!!a&re*
3.E LIMITATIONS
Tho+.h e2ery e--ort wa* ,ade to ,a0e the report a+thentic in e2ery *en*e/ yet there are
-ew -actor* which ,i.ht ha2e their in-l+ence on the -inal report1
11There wa* ti,e *horta.e1 Ti,e pro2ided to +* wa* 2ery *hort which ,a0e it
di--ic+lt -or +* to cond+ct *+r2ey at wider ran.e1
31 So,eti,e* re*pondent* did not re*pond well to all the G+e*tion* in the
G+e*tionnaire1
71 8ow cooperation -ro, the ban0 e6ec+ti2e* ,a0e to *tr+..le ,ore/ d+e to which
we were -orced to re*trict o+r *a,ple *i?e to BF1
:1So,e bia*ne** ,i.ht ha2e occ+rred in analy*i*1 'eca+*e o- lac0 o- e6pert
0nowled.e1
:1

;1'e*t e--ort* were ,ade to incorporate allEi,portant 2ariable* in *t+dy/ yet chance*
o- *o,e o- 2ariable* not appearin. in *t+dy are not r+led o+t1
>1#reG+ent de2elop,ent* in thi* *ector can be a ,ajor rea*on o- li,itation in the
*t+dy
A1'ia*ne** in 2iew* o- re*pondent* can$t be r+led o+t
B1Re*i*tance to chan.e *o,eti,e* a--ect* 2iew o- re*pondent*1
Chapter 6.
FINDINGS
!ATA A%A8"SIS
STATE 'A%( O# I%!IA
:3


Sa,ple Si?e 7;
SAMPLE SIHE
SBI 3?
HDFC 3?
:7


. AGE GROUP AND DISTRIBUTION OF MALE AND FEMALE CUSTOMERS
DEALING WITH SBI
8a: A(e Gr"$p
AGE NO. OF PERSONS
LESS THAN 25 5
25-35 8
35-45 6
45-55 12
55 & ABOVE 4
::



NO. OF PERSONS
8a:Ge!#er
GENDER
NO. OF
PERSONS
MALE 28
FEMALE 7
:;


-. OCCUPATION OF THE CUSTOMERS OF SBI
OCCUPATION NO. OF
:>



PERSONS
SERVICE 15
BUSINESMAN 6
PROFESSIONAL 3
STUDENT 8
HOUSEIFE 3
3. DISTRIBUTION OF THE INCOME OF THE CUSTOMERS OF SBI
INCOME NO. OF PERSONS
NIL 8
LESS THAN 5!!!! 5
5!!!!-15!!!! 7
15!!!!-3!!!!! 5
3!!!!!-5!!!!! 6
:A



5!!!!!-ABOVE 4
6. MOST IMPORTANT REASON FOR CHOOSING SBI
FACTORS
NO. OF
PERSONS
I "#$% # &'#()&)*+#, -#+. #//*0+& 1)&" &"% 2#3%
-#+. 12
T"% -'#+( +#3% *4 &"% -#+. 4
T"% %5/%,,%+& 2%'$)/% *6%'%( -7 &")2 -#+. 5
ATM 2%'$)/% 7
:B



N%& -#+.)+8 4#/),)&7 3
L*/#&)*+ #($#+&#8% 4
?. ACCOUNT FACILITY AVAILING IN THE SBI
FACILIT9 NO. OF PERSONS
S#$)+82 #//*0+& 18
C0''%+& #//*0+& 5
F)5%( (%:*2)& 12
NRI #//*0+& !
:=


E. NO. OF YEARSC CUSTOMERS DEALING SBI
9EARS
NO. OF
PERSONS
L%22 &"#+ 1 7%#' 7
1 &* 2 7%#'2 12
3 &* 5 7%#'2 7
M*'% &"#+ 5 7%#'2 ;
;F


B. REASON FOR TYPICALLY VISITING THE BANK BRANCH
REASONS NO. OF
;1



PERSONS
T* 3#.% # (%:*2)& 14
T* 8%& #($)/% 4*' )+$%2&3%+&
*:&)*+2 2
T* )+<0)'% #-*0& # -#,#+/% 7
T* 1)&"('#1 /#2 12
> HOW WOULD YOU RATE THE FOLLOWING BANKING SERVICE
GUALITY ON SCALE OF /? PROVIDED BY BANK WHERE /EICELLENTC
-/GOODC 3 ABOVE/AVERAGEC 6/AVERAGEC ?/BELOW AVERAGE
ACCE
SS
COMMU
NICATIO
N
C*+=(%+
&)#,)&7 C*0'&%27
R%,)#-),)&
7 S%/0')&7
R%2:*+2)
$%+%
#)&)+8
&)3%
;3



E>CELLENT 13 7 15 12 14 17 ; 5
GOOD ; 11 1! ; ; 12 7 6
ABOVE
AVERAGE 6 13 6 7 4 4 12 4
AVERGE 5 3 3 5 5 1 5 ;
BELO
AVERAGE 2 1 1 2 3 1 2 11
J WHICH FACILITY SATISFIES YOU MOST
FACILIT9 NO. OF PERSONS
ATM 13
L*#+ 7
E#',7 /"%<0% /,%#'#+/% 2
P'%:#'#&)*+ *4 ('#4&2 3
I+&%'%2& :#/.#8% 3
N%& -#+.)+8 3
P"*+% -#+.)+8 4
;7



= IF YOU ARE PROVIDED WITH BETTER SERVICES BY OPTIONAL
BANK. WOULD YOU LIKE TO MOVE TO OTHER BANK
9ES 6
NO 2;
;:


OVERALL SATISFACTION OF THE CUSTOMERS WITH THE
PERFORMANCE OF SBI
SATISFCTION
NO. OF
PERSONS
E>CELLENT 8
GOOD 6
SATISFACTOR9 18
AVERAGE 3
BELO AVERAGE !
;;

SATISFACTION LEVEL
Chapter 6.-
;>

FINDINGS
!ATA A%A8"SIS
H!#C 'A%(
Sa,ple Si?e 7;
;A



SAMPLE SIHE
HDFC 3?
SBI 3?
. AGE GROUP AND DISTRIBUTION OF MALE AND FEMALE CUSTOMERS
DEALING WITH HDFC
;B



8a: A(e Gr"$p
AGE NO. OF PERSONS
LESS THAN 25 4
25-35 12
35-45 7
45-55 ;
55 & ABOVE 3
87: Ge!#er
;=


GENDER
NO. OF
PERSONS
MALE 27
FEMALE 8
-. OCCUPATION OF THE CUSTOMERS OF HDFC
>F


OCCUPATION
NO. OF
PERSONS
SERVICE 12
BUSINESMAN 13
PROFESSIONAL 5
STUDENT 3
HOUSEIFE 2
>1



3. DISTRIBUTION OF THE INCOME OF THE CUSTOMERS OF HDFC
INCOME NO. OF PERSONS
NIL 2
LESS THAN 5!!!! 4
5!!!!-15!!!! ;
15!!!!-3!!!!! 8
3!!!!!-5!!!!! ;
5!!!!!-ABOVE 3
6. MOST IMPORTANT REASON FOR CHOOSING HDFC
>3


FACTORS NO. OF PERSONS
I 0ave a traditional bank account $it0 t0e same bank 3
T"% -'#+( +#3% *4 &"% -#+. 6
T"% %5/%,,%+& 2%'$)/% *6%'%( -7 &")2 -#+. 12
ATM 2%'$)/% 5
N%& -#+.)+8 4#/),)&7 2
L*/#&)*+ #($#+&#8% 7
?. ACCOUNT FACILITY AVAILING IN THE HDFC
>7


FACILIT9 NO. OF PERSONS
S#$)+82 #//*0+& 21
C0''%+& #//*0+& 7
F)5%( (%:*2)& 6
NRI #//*0+& 1
E. NO. OF YEARSC CUSTOMERS DEALING WITH HDFC
>:


9EARS
NO. OF
PERSONS
L%22 &"#+ 1 7%#' 7
1 &* 2 7%#'2 ;
3 &* 5 7%#'2 13
M*'% &"#+ 5 7%#'2 6
>;



B. REASON FOR TYPICALLY VISITING THE BANK BRANCH
REASONS
NO. OF
PERSONS
(o make a de!osit 17
T* 8%& #($)/% 4*' )+$%2&3%+&
*:&)*+2 3
T* )+<0)'% #-*0& # -#,#+/% 5
T* 1)&"('#1 /#2 1!
>>


> HOW WOULD YOU RATE THE FOLLOWING BANKING SERVICE
GUALITY ON SCALE OF /? PROVIDED BY BANK WHERE /
EICELLENTC -/GOODC 3 ABOVE/AVERAGEC 6/AVERAGEC ?/BELOW
AVERAGE
AC
CE
SS
COMM
UNICAT
ION
C*+=(%+
&)#,)&7
C*0'&%
7
R%,)#-),)
&7
S%/0')
&7
R%2:*+
)$%+%
#)&)+8
&)3%
E>CE
LLEN
T 24 6 22 6 15 17 14 3
GOOD 6 12 22 1! 8 7 8 2
ABOV
E
AVER
AGE 3 14 4 12 6 6 6 8
AVER
AGE 2 2 2 2 4 4 4 17
BELO

AVER
AGE ! 1 ! 5 2 1 3 5
>A

>B



J WHICH FACILITY SATISFIES YOU MOST
FACILIT9
NO. OF
PERSONS
3(1 1!
L*#+ 4
E#',7 /"%<0% /,%#'#+/% 8
P'%:#'#&)*+ *4 ('#4&2 2
I+&%'%2& :#/.#8% 3
N%& -#+.)+8 5
P"*+% -#+.)+8 3
>=



= IF YOU ARE PROVIDED WITH BETTER SERVICES BY OPTIONAL
BANK. WOULD YOU LIKE TO MOVE TO OTHER BANK
9ES ;
NO 26
AF



OVERALL SATISFACTION OF THE CUSTOMERS WITH THE
PERFORMANCE OF HDFC BANK
SATISFCTION
NO. OF
PERSONS
E>CELLENT 7
GOOD 12
SATISFACTOR9 8
AVERAGE 5
BELO AVERAGE 3
SATISFACTION LEVEL
A1

Chapter 6.3
!ATA A%A8"SIS
COMPARATIVE ST!"
O#
S'I
A%!
H!#C 'A%(
Sa,ple Si?e AF
A3



. COMPARATIVE STUDY OF AGE GROUP WITH GENDER OF
CUSTOMERS LINKING WITH SBI AND HDFC BANK
8a:.AGE GROUP
AGE SBI HDFC
LESS THAN 25 5 4
25-35 8 12
35-45 6 7
45-55 12 ;
55 & ABOVE 4 3
A7



87:.GENDER
GENDER SBI HDFC
MALE 28 27
FEMALE 7 8

A:



-. COMPARATIVE STUDY OF THE CUSTOMERS OF SBI AND HDFC
BANK REGARDING THEIR OCCUPATION
OCCUPATION SBI HDFC
SERVICE 15 12
BUSINESMAN 6 13
PROFESSIONAL 3 5
STUDENT 8 3
HOUSEIFE 3 2
A;



3. COMPARATIVE STUDY OF THE CUSTOMERS OF SBI AND HDFC
BANK REGARDING THEIR INCOME
INCOME SBI HDFC
NIL ! 2
LESS THAN 5!!!! 8 4
5!!!!-15!!!! 7 ;
15!!!!-3!!!!! 1! 8
3!!!!!-5!!!!! 6 ;
5!!!!!-ABOVE 4 3
A>



4 COMPARITIVE STUDY OF MOST IMPORTANT REASON CHOOSING
THE PARTICULAR BANK
FACTORS SBI HDFC
I "#$% # &'#()&)*+#, -#+. #//*0+& 1)&" &"%
2#3% -#+. 12 3
T"% -'#+( +#3% *4 &"% -#+. 4 6
T"% %5/%,,%+& 2%'$)/% *6%'%( -7 &")2 -#+. 5 12
ATM 2%'$)/% 7 5
N%& -#+.)+8 4#/),)&7 3 2
L*/#&)*+ #($#+&#8% 4 7
AA



?. COMPARATIVE STUDY OF THE CUSTOMERS OF SBI AND HDFC BANK
REGARDING THE ACCOUNT FACILITIES PROVIDED TO THEM
FACILIT9 SBI HDFC
S#$)+82 #//*0+& 18 21
C0''%+& #//*0+& 5 7
F)5%( (%:*2)& 12 6
NRI #//*0+& ! 1
AB



E. COMPARATIVE STUDY OF THE TIME PERIOD OF CUSTOMERS
DEALING WITH SBIAND HDFC BANK
9EARS SBI HDFC
L%22 &"#+ 1 7%#' 7 7
1 &* 2 7%#'2 12 ;
3 &* 5 7%#'2 7 13
M*'% &"#+ 5 7%#'2 ; 6
A=



B. COMPARITIVE STUDY OF REASON THAT MAKE CUSTOMER TO
TYPICALLY VISIT BANK BRANCH
REASONS SBI HDFC
T* 3#.% # (%:*2)& 14 17
T* 8%& #($)/% 4*' )+$%2&3%+& *:&)*+2 2 3
T* )+<0)'% #-*0& # -#,#+/% 7 5
T* 1)&"('#1 /#2 12 1!
BF



>. COMPARITIVE STUDY OF MOST SATISFYING FACILITY
OFFERED BY THEM
FACILIT9 SBI HDFC
ATM 13 1!
L*#+ 7 4
E#',7 /"%<0% /,%#'#+/% 2 8
P'%:#'#&)*+ *4 ('#4&2 3 2
I+&%'%2& :#/.#8% 3 3
N%& -#+.)+8 3 5
P"*+% -#+.)+8 4 3
B1



J. CUSTOMERS WANT TO SHIFT TO ANOTHER BANK IF THEY ARE
PROVIDED WITH BETTER SERVICE
CHANGE SBI HDFC
9ES 6 ;
NO 2; 26
=. COMPARISON REGARDING THE OVERALL SATISFACTION
OF THE CUSTOMERS
B3


SATISFCTION SBI HDFC
E>CELLENT 8 7
GOOD 6 12
SATISFACTOR9 18 8
AVERAGE 3 5
BELO AVERAGE ! 3
B7

Chapter ?
?. S$((e*t&"!* a!# Re%"++e!#at&"!*
11'oth the c+*to,er* -ro, S'I and H!#C ban0 ha2e *+..e*ted that the ban0
*ho+ld open one o- it* branch in ind+*trial area li0e -ocal point1
31 One o- the ,o*t co,,on *+..e*tion wa* to lower down the ,ini,+, balance
reG+ired in the *a2in. * acco+nt1
71 Sta-- *ho+ld be ,ore coEoperati2e to the c+*to,er*1
:1C+*to,er* were not -+lly aware o- the *er2ice* and the 2ario+* char.e* which
they ha2e to pay1 There-ore 'an0* *ho+ld try to .i2e *o,e ,ore in-or,ation to it*
e6i*tin. c+*to,er*
A**$+pt&"!*
The project report i* ba*ed on the pre-erence o- the c+*to,er* and the le2el o- *ati*-action
toward* S'I and H!#C ban01 !+rin. project we co,e to 0now that both the ban0* are
hi.hly pre-erred by the c+*to,er* b+t their pre-erence i* di--erent +p to *o,e e6tend
toward* the *er2ice o- the*e ban0*1 #ollowin. are the a**+,ption* o- the project1
11Ran.e o- the *+r2ey i* li,ited to Patiala city1 It ,ay not hold the *a,e re*+lt in
the di--erent city1
31 The *a,ple *i?e -or the *+r2ey i* re*tricted +p to AF1 O+t o- &hich 7;
G+e*tionnaire wa* -illed by the c+*to,er* o- S'I and 7; wa* -illed by c+*to,er*
o- H!#C ban01
71 S+r2ey i* done in a 2ery *hort period o- ti,e1 Thi* ,ay ha2e i,pact on the -inal
re*+lt o- the *+r2ey1
B:

Chapter E
Appe!#&2
GUESTIONNAIRE
CUSTOMER PREFERENCE TOWARDS SBI AND HDFC BANK
Name55555555555555555555
2.kGender
1ale ,emale
3.kAge
2ess t0an 2& 2&-3&
3&-4& 4&-&&
&&-above
4. Occupation
Service Business
Pro"essional Student
*ouse$i"e
5. Income
6il 2ess t0an &07000
&07000 to 17&07000 17&07000 to 37007000
37007000 to &7007000 &7007000 and above
B;

. Bank !ou are dea"ing #ith
*+, SBI
$. %hat #a& the &ing"e mo&t important rea&on that !ou cho&e thi& particu"ar Ban
I 0ave a traditional bank account $it0 t0e same bank
(0e brand name o" t0e bank
(0e e8cellent service o""ered by t0is bank
3(1 service
6et banking "acility
2ocation advantage
3ny ot0er !lease s!eci"y555555555555555555555555555555555555555

'. %hich account (aci"it! !ou are a)ai"ing in the Ban
Savings account urrent account
,i8ed de!osit 6/I account
*. Since ho# man! !ear& !ou are dea"ing #ith thi& Ban
2ess t0an 1 year 1 to 2 years
3 to & years 1ore t0an & years
1+. %hat i& the main rea&on that !ou t!pica""! )i&it !our ,ank ,ranch
-p"ea&e choo&e the &ing"e mo&t important rea&on.

(o make a de!osit
(o get advice "or investment o!tions
(o in9uire about a balance
(o $it0dra$ cas0
3ny ot0er !lease
s!eci"y5555555555555555555555555555555555555555555555
B>

11./o# #ou"d !ou rate the (o""o#ing ,anking &er)ice 0ua"it! on &ca"e o( 115 pro)ided
,! ,ank #here 11exce""ent2 21good2 3 a,o)e1a)erage2 41a)erage2 51,e"o# a)erage
3ccess ommunication
on"identiality ourtesy
/eliability Security
/es!onsiveness 'aiting time
12.%hich (aci"it! &ati&(ie& !ou mo&t
3(1 Interest !ackage
2oan 6et banking
:arly c0e9ue clearance P0one banking
Pre!aration o" dra"ts
171 I( !ou are pro)ided #ith ,etter &er)ice& ,! optiona" ,ank. %ou"d !ou "ike to mo)e
to other ,ank.
;es 6o
14. /o# #ou"d !ou rank the o)era"" &er)ice
:8cellent <ood
Satis"actory 3verage Belo$ 3verage
Sugge&tion&
I" any5555555555555555555555555555555555555555555555
signature
(0ank you very muc0 "or your time7 coo!eration = !atient
BA

BIBLIOGRAPHY
WEBSITE USED
www1hd-cindia1co,
www1*tateban0o-india1co,
httpC99www1ban0netindia1co,9ban0in.9inde6P11ht,
httpC99www1a*iatradeh+b1co,9india9ban0in.9-inance1ht,l
httpC99www1en1wi0ipedia1or.9wi0i9StandardPCharteredP'an0
httpC99www1-inance1india,art1co,9in2e*t,entPinPindia9*tandardPcharteredPban01
ht,l
httpC99www1e**ay*1*e9abo+t9literat+reQre2iewQo-Qc+*to,erQ*ati*-action9
httpC99www1e,eraldin*i.ht1co,
httpC99www1e**ay*1*e9abo+t9literat+reQre2iewQo-Qc+*to,erQ*ati*-action
httpC99www1e**ay*1*e9abo+t9literat+reQre2iewQo-Qc+*to,erQ*ati*-action9R*tartrecord>

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