Professional Documents
Culture Documents
PART-A
1. INDUSTRY PROFILE
INTRODUCTION
The banking section will navigate through all the aspects of the Banking System in India.
It will discuss upon the matters with the birth of the banking concept in the country to new
players adding their names in the industry in coming few years.
The banker of all banks, Reserve Bank of India (RBI), the Indian Banks Association (IBA)
and top 20 banks like IDBI, HSBC, ICICI, ABN AMRO, etc. has been well defined under
three separate heads with one page dedicated to each bank.
However, in the introduction part of the entire banking cosmos, the past has been well
explained under three different heads namely:
The first deals with the history part since the dawn of banking system in India.
Government took major step in the 1969 to put the banking sector into systems and it
nationalized 14 private banks in the mentioned year. This has been elaborated in
Nationalization Banks in India. The last but not the least explains about the scheduled and
unscheduled banks in India. Section 42 (6) (a) of RBI Act 1934 lays down the condition of
scheduled commercial banks. The descriptions along with a list of scheduled commercial
banks are given on this page.
Without a sound and effective banking system in India it cannot have a healthy economy.
The banking system of India should not only be hassle free but it should be able to meet
new challenges posed by the technology and any other external and internal factors.
For the past three decades India's banking system has several outstanding achievements to
its credit. The most striking is its extensive reach. It is no longer confined to only
metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even
to the remote corners of the country. This is one of the main reasons of India's growth
process. The government's regular policy for Indian bank since 1969 has paid rich
dividends with the nationalization of 14 major private banks of India.
Not long ago, an account holder had to wait for hours at the bank counters for getting a
draft or for withdrawing his own money. Today, he has a choice. Gone are days when the
most efficient bank transferred money from one branch to other in two days. Now it is
simple as instant messaging or dial a pizza. Money have become the order of the day.
The first bank in India, though conservative, was established in 1786. From 1786 till
today, the journey of Indian Banking System can be segregated into three distinct phases.
They are as mentioned below:
New phase of Indian Banking System with the advent of Indian Financial &
Banking Sector Reforms after 1991.
To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and
Phase III.
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.
In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab
National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and
1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank,
and Bank of Mysore were set up. Reserve Bank of India came in 1935.
During the first phase the growth was very slow and banks also experienced periodic
failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To
streamline the functioning and activities of commercial banks, the Government of India
came up with The Banking Companies Act, 1949 which was later changed to Banking
Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of
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India was vested with extensive powers for the supervision of banking in India as the
Central Banking Authority.
During those day’s public has lesser confidence in the banks. As an aftermath deposit
mobilization was slow. Abreast of it the savings bank facility provided by the Postal
department was comparatively safer. Moreover, funds were largely given to traders.
Phase II
Government took major steps in this Indian Banking Sector Reform after independence. In
1955, it nationalized Imperial Bank of India with extensive banking facilities on a large
scale especially in rural and semi-urban areas. It formed State Bank of India to act as the
principal agent of RBI and to handle banking transactions of the Union and State
Governments all over the country.
Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19th
July, 1969, major process of nationalization was carried out. It was the effort of the then
Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country
was nationalized.
Second phase of nationalization Indian Banking Sector Reform was carried out in 1980
with seven more banks. This step brought 80% of the banking segment in India under
Government ownership.
The following are the steps taken by the Government of India to Regulate Banking
Institutions in the Country:
After the nationalization of banks, the branches of the public sector bank India rose to
approximately 800% in deposits and advances took a huge jump by 11,000%.
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Banking in the sunshine of Government ownership gave the public implicit faith and
immense confidence about the sustainability of these institutions.
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 liberalization 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.
The financial system of India has shown a great deal of resilience. It is sheltered from any
crisis triggered by any external macroeconomics shock as other East Asian Countries
suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high,
the capital account is not yet fully convertible, and banks and their customers have limited
foreign exchange exposure.
BANKS IN INDIA
In India the banks are being segregated in different groups. Each group has their own
benefits and limitations in operating in India. Each has their own dedicated target market.
Few of them only work in rural sector while others in both rural as well as urban. Many
even are only catering in cities. Some are of Indian origin and some are foreign players.
All these details and many more is discussed over here. The banks and its relation with the
customers, their mode of operation, the names of banks under different groups and other
such useful information’s are talked about.
One more section has been taken note of is the upcoming foreign banks in India. The RBI
has shown certain interest to involve more of foreign banks than the existing one recently.
This step has paved a way for few more foreign banks to start business in India.
The first, the oldest, the largest, the biggest, get all such types of information’s about
Banking in India in this section.
The first bank in Northern India to get ISO 9002 certification for their
Punjab and Sind Bank
selected branches
The first Indian bank to have been started solely with Indian capital Punjab National Bank
India's second largest private sector bank and is now the largest
The Federal Bank Limited
scheduled commercial bank in India
The first Indian bank to open a branch outside India in London in 1946 Bank of India, founded in
and the first to open a branch in continental Europe at Paris in 1974 1906 in Mumbai
The oldest Public Sector Bank in India having branches all over India
Allahabad Bank
and serving the customers for the last 132 years
The first Indian commercial bank which was wholly owned and
Central Bank of India
managed by Indians
Bank of India was founded in 1906 in Mumbai. It became the first Indian bank to open a
branch outside India in London in 1946 and the first to open a branch in continental
Europe at Paris in 1974.
Among the Public Sector Banks in India, United Bank of India is one of the 14 major
banks, which were nationalized on July 19, 1969. Its predecessor, in the Public Sector
Banks, the United Bank of India Ltd., was formed in 1950 with the amalgamation of four
banks viz. Camilla Banking Corporation Ltd. (1914), Bengal Central Bank Ltd. (1918),
Camilla Union Bank Ltd. (1922) and Hooghly Bank Ltd.(1932).
• Allahabad Bank
• Andhra Bank
• Bank of Baroda
• Bank of India
• Bank of Maharastra
• Canara Bank
• Corporation Bank
• Dena Bank
• Indian Bank
• Syndicate Bank
• UCO Bank
• Vijaya Bank
List of State Bank of India and its subsidiary, a Public Sector Banks
Private banking in India was practiced since the beginning of banking system in India. The
first private bank in India to be set up in Private Sector Banks in India was IndusInd Bank.
It is one of the fastest growing Bank Private Sector Banks in India. IDBI ranks the tenth
largest development bank in the world as Private Banks in India and has promoted world
class institutions in India.
The first Private Bank in India to receive an in principle approval from the Reserve Bank
of India was Housing Development Finance Corporation Limited, to set up a bank in the
private sector banks in India as part of the RBI's liberalization of the Indian Banking
Industry. It was incorporated in August 1994 as HDFC Bank Limited with registered
office in Mumbai and commenced operations as Scheduled Commercial Bank in January
1995.
ING Vysya, yet another Private Bank of India was incorporated in the year 1930.
Bangalore has a pride of place for having the first branch inception in the year 1934. With
successive years of patronage and constantly setting new standards in banking, ING Vysya
Bank has many credits to its account.
• Bank of Punjab
• Bank of Rajasthan
• Centurion Bank
• Dhanalakshmi Bank
• Federal Bank
• HDFC Bank
• ICICI Bank
• IDBI Bank
• IndusInd Bank
• Karnataka Bank
The Indian banking market is growing at an astonishing rate, with Assets expected to
reach US$1 trillion by 2010. An expanding economy, middle class, and technological
innovations are all contributing to this growth.
The country’s middle class accounts for over 320 million People. In correlation with the
growth of the economy, rising income levels, increased standard of living, and
affordability of banking products are promising factors for continued expansion.
The Indian banking market is growing at an astonishing rate, with Assets expected to
reach US$1 trillion by 2010. An expanding economy, middle class, and technological
innovations are all contributing to this growth.
having a small number of large players that can compete globally rather than having a
large number of fragmented players."
2. COMPANY PROFILE
Company History:
The HSBC Group is named after its founding member, The Hongkong and Shanghai
Banking Corporation Limited, which was established in 1865 to finance the growing trade
between Europe, India and China.
The inspiration behind the founding of the bank was Thomas Sutherland, a Scot who was
then working for the Peninsular and Oriental Steam Navigation Company. He realized that
there was considerable demand for local banking facilities in Hong Kong and on the China
coast and he helped to establish the bank, which opened in Hong Kong in March 1865 and
in Shanghai a month later.
Soon after its formation the bank opened agencies and branches around the world.
Although that network reached as far as Europe and North America, the emphasis was on
building up representation in China and the rest of the Asia-Pacific region. HSBC was a
pioneer of modern banking practices in a number of countries. In Japan, where a branch
was established in 1866, the bank acted as adviser to the government on banking and
currency. In 1888, it was the first bank to be established in Thailand, where it printed the
country’s first banknotes.
From the outset trade finance was a strong feature of the local and international business
of the bank, an expertise that has been recognized throughout its history. Bullion,
exchange, merchant banking and note issuing also played an important part. By the 1880s,
the bank was acting as banker to the Hong Kong government and also participated in the
management of British government accounts in China, Japan, Penang and Singapore. In
1874 the bank handled China’s first public loan and thereafter issued most of China’s
public loans.
What is HSBC?
Headquarters in London, HSBC is one of the largest banking & financial services
organization in the world.
HSBC’s international network comprises over 9500 offices in 76 countries & territories in
Europe, the Asia-Pacific region, the Americas, the Middle East & Africa.
With listings on the London, Hongkong, New York, Paris & Bermuda stock exchange
shares in HSBC holdings places are held by nearly 200,000 shareholders in some 100
countries & territories. The shares are traded on the New York stock exchange in the form
of American Depository Receipts.
The Hong Kong & Shanghai Banking Corporation Limited (HBAP) : 1867
HSBC Securities & Capital Markets (India) Private Limited (HBAP) : 1995
HSBC Operations & processing enterprise (India) Pvt. Ltd. (HOPE) : 2003
Canara HSBC Oriental bank of commerce Life insurance co. Ltd. : 2008
Personal Banking
HSBC offers a wide range of personal financial services, including personal lending and
deposit products, through its branch network in Ahmedabad, Bangalore, Chennai,
Chandigarh, Coimbatore, Gurgaon, Hyderabad, Jaipur, Kochi, Kolkata, Ludhiana,
Mumbai, New Delhi, Noida, Pune, Thane, Trivandrum and Visakhapatnam. Also offered
branch-wide are international Gold and Classic credit cards from VISA and MasterCard
and debit cards from Visa. Customers have access to 24-hour banking services through an
extensive network of automated teller machines (ATMs), an integrated Call Centre, and
internet banking - online@hsbc.
HSBC's Non Resident Indian Banking (NRI) centres located in Asia-Pacific, the Middle
East, Europe and North America, together with HSBC's offices worldwide, provide the
international Indian Diaspora access to a range of products and services. These include
NRI related investment (both international and domestic), transactional and deposit
products, together with a full range of personal and private banking products in India and
overseas. Internet banking also provides easy access to HSBC's services.
Services include investment and custodian management and access to stock broking and
insurance services, which are offered to resident as well as non-resident Indians.
Corporate Banking
HSBC has well-established, long-term corporate banking relationships with large domestic
Indian corporations and foreign multinationals operating in India. Services include term
and working capital finance, trade facilities, corporate deposits, syndications, payments
and cash management services and factoring.
Business Banking
HSBC's Extra Mile Business Banking offers two types of account to small and medium-
sized businesses - The Business Account and the BusinessVantage Account. Services
include Business Phone Banking, Business Doorstep Banking and Multi Branch Business
Banking.
HSBC provides integrated domestic and regional transaction support to corporate clients
through a sophisticated range of cash management solutions, including collection and
payment services and integration with customer back-end systems. Operations and client
services are ISO 9001 certified. Hexagon, the HSBC Group's dedicated electronic banking
service allows users to perform financial transactions, obtain international financial
markets information, and review details of their domestic and international accounts, from
anywhere in the world, 24 hours a day.
A wide range of solutions tailored to meet customer's requirements for both domestic and
international businesses is offered. HSBC is also one of the leading banks involved in the
bullion business through its offices in Ahmedabad, Bangalore, Chennai, Hyderabad,
Kolkata, New Delhi and is supported by the Group's global expertise in the precious metal
business. HSBC is the leading provider of trade services in India and its trade centres are
ISO 9002 certified.
Institutional Banking
Working closely with Group offices in India and overseas, trade services, payments and
cash management, treasury and capital markets, custody and clearing, and correspondent
and electronic banking activities are offered to banks, financial institutions, securities
houses, insurance companies, asset management companies and other non-banking
companies, non government and development organisations operating in India.
Clients consistently rate HSBC's Treasury business as one of the best in India. Its dealing
room in Mumbai is one of the largest in the country, serving clients in Mumbai and in the
major metropolitan centres across the country. It provides a comprehensive range of
products which include - foreign exchange, money market and fixed income products and
derivatives in both rupees and major currencies.
The leading custodian in Asia, HSBC's custody and clearing services are available in 28
markets in Asia-Pacific and the Middle East. With experienced staff and the latest
technology, HSBC is the premier provider of sub-custodian and clearing services to
foreign institutional investors (FIIs) in India. HSBC clients include the domestic fund
management sector in both the retail and institutional segments. Institutional Fund
Services launched by the bank offers a comprehensive suite of products to domestic
mutual funds and insurance companies ranging from custody, fund administration
services, unit distribution and Cash Management Services.
➢ Technology
The HSBC Group develops and applies advanced technology to the efficient and
convenient delivery of banking and related financial services. In India, the Group
provides:
• Self-Service Banking with over 150 in-branch and off-branch ATMs and 24-hour
Phone Banking.
• A sophisticated card system supporting debit and credit cards, domestic and
international VISA, MasterCard, and co-branded cards
➢ Asset Management
HSBC Asset Management (India) Private Limited provides a comprehensive range of
investment management solutions to a diverse client base and is committed for aiming to
deliver consistent investment performance, world-class service and a broad range of
solutions for all types of investors. Our range of offerings in India comes under two broad
categories Mutual Fund and Portfolio Management Services.
➢ Insurance
HSBC Insurance Brokers (India) Private Limited is licensed by the Insurance
Regulatory Development Authority (IRDA) to operate as a composite insurance broking
company, which will function as a direct and a reinsurance broker.
➢ Data Processing
HSBC Operations and Processing Enterprise (India) Private Limited, through two
centres in Mumbai and Chennai, provides operational processing services for HSBC
offices in India.
The HSBC Group is one of the largest banking and financial services organisations in the
world, with well-established businesses in Europe, the Asia-Pacific region, the Americas,
the Middle East and Africa.
Top of Form
Vision:
As a member of HSBC family which has been serving its millions of customers worldwide
since 1865, to take our place among Turkey’s most powerful, most profitable, most
admired leader banks.
Mission:Having regard to ethical values; to meet its customers financial needs in the
fastest and most appropriate way, to continue innovative works in order to achieve: human
resource with superior qualities, technological infrastructure and service packages.
Our Values:
3) To keep its reliability at the utmost level with the contribution of its strong capital
structure and liquid assets.
5) To respect meritocracy during hiring processes, improving knowledge and skills of its
employees, creating the mostly preferred work environment.
• Electronic Collections
➢ Paper Collection
IRS is structured to offer quick realisation of your instruments, local or outstation. The
proceeds of all cheques deposited with HSBC can be concentrated into a designated
central account at any of our branches. Consequently you have better control on your cash
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flows and the reconciliation and monitoring requirements associated with multiple
accounts are eliminated. Information on these collections is delivered to you through
HSBCnet.
IRS further delivers a variety of collection reports that can be used for automating the
reconciliation process at your end.
➢ Electronic Collections
IRS helps your business process improvement objectives with a comprehensive array of
electronic collections, including
• Direct debit
E) AREA OF OPERATION:
Australia
South America:
Asia:
· HSBC Armenia
· HSBC Bangladesh
· HSBC Brunei
· HSBC Indonesia
· HSBC Pakistan
Asia Pacific:
· HSBC Algeria
· HSBC France
· HSBC Bahrain
North America:
· HSBC Bermuda
· HSBC Mexico SA
f) OWNERSHIP PATTERN
Name Designation
g) COMPETITORS INFORMATION
Main Competitors:
• Barclays
• Citigroup
• Royal Bank of Scotland
Other competitors
h) INFRASTRUCTURE FACILITY
Statutory facilities:
The bank provides statutory facilities to its employees which are as follows:
Canteen:
There is a subsidized canteen in the bank which supplies tea, snacks and meals coupons
are provided to the employees and the canteen works round the clock.
First Aid:
It is well equipped with all the medical equipments required for first aid. An ambulance is
also provided for employees during emergency.
est room and Lunch room: The bank has provided a rest and lunch room for its
workers.
Individual lockers are provided for each worker in their respective dept to keep their tools
and other belonging.
• Open air Auditorium There is a huge open air auditorium, which can
accommodate 5000 peoples. Various cultural activities are conducted occasionally
over here and feature films are screened occasionally.
• Guest House
The guest house is at amidst of lush green gardens, which provides suit for management
staff.
➢ HSBC won the BML Munjal Award for Excellence in learning and development
for the year 2009 in the private sector category.
➢ HSBC India was declared the winner of the Golden Peacock National Training
Award for 2009,an award that recognizes organizations that show real initiative
and commitment to development of their employees
➢ HSBC was ranked second Best Bank in the Hewitt Best Employers Study of 2009
➢ HSBC has been ranked second amongst the Financial Institutions and 22nd amongst
all companies in an Outlook business Hewitt Associations Study.
➢ HSBC won the prestigious Green Globe Award in the business enterprise category
for its commitment to environment sustainability.
Commercial banking
➢ HSBC was the proud recipient of two awards at the first ever Dun & Brandstreet
Bank Awards-for Best Asset Quality-Foreign Banks and Best SME Financing-
Foreign Banks.
➢ HSBC was adjusted as the Best Securities Services Provider in India by Asian
Investor in the Asian Investor Service Provider Awards, 2009.
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➢ Top Rated category in the Global Custodian Agent Banks Survey, for the 8th year
in a row, in 2009.
Marketing
➢ INM Marketing won Gold at the National Media Abbys 2009 for Best Use of
internet and new media for its compaign ‘Wimbledon Fever in your inbox’.
➢ Won IQPC award under ‘Best Innovative Six Sigma Project’ at the Prestigious
Asian Six Sigma Awards2009, Singapore.
➢ SCMHRD Lean Six Sigma Awards 2009, Pune.
➢ Winner of the ‘Bombay Chamber of Commerce Civic Awards’ under the Art,
Culture & Heritage category-all credit to the GCR and ADMN team
➢ HSBC INM branch at Vadodara was awarded with USGBC LEED ‘Platinum’
rating certificate in the Commercial Interiors Category in Dec 2009.This is the
highest rating that any building can achieve in LEED certification.
➢ HSBC Asset Management India Private Limited (AMIN).
➢ ICRA Mutual Fund Award 2009-HSBC Monthly Income Plan-Saving Plan has
been ranked a ‘five star fund’indicating performance among the top 10%in the
category of ‘open ended marginal equity’ for three-year period ending 31
December 2008.
➢ HSBC Equity Fund was ranked 5 star fund by Value Research Online in March
2009.
j) WORKFLOW MODEL:
APPLICATION
REFERENCE CHECKS
TELEPHONIC VERIFICATION
Emerging markets will continue to outperform developed economies this year, but policy-
makers will continue to face the challenge of rising inflationary pressure, said Fred
Neumann, managing director and co-chief of Asian Economics Research for the Hong
Kong and Shanghai Bank (HSBC).
He also remains optimistic about Thai economy, saying political uncertainty is only a
short-term issue.
"Emerging markets re-accelerated in the fourth quarter last year," Neumann said, referring
to the HSBC emerging markets index (EMI) quarterly weighted composite indicators
based on 20 manufacturing and service sectors derived from the Purchasing Managers
Index (PMIs) surveys conducted across 16 emerging markets. The EMI rose to 55.7 in the
fourth quarter versus 54.2 in the third quarter, he said in a teleconference from Hong
Kong.
Manufacturing has rebounded especially in China, India, Israel, Poland and Turkey, he
explained, adding that India had recorded strongest growth in new exports in the fourth
quarter, while China's new exports growth was modest but fastest in three quarters.
Neumann said domestic demand in emerging market has been driving growth. Domestic
demand outperformed exports last year, and two of the top 10 markets showing export
growth were the emerging markets of India and Czech Republic, which reflected
continued weak demand from the West.
This demonstrates a de-coupling from the West as trade among emerging markets has
increased, and if more trade barriers were dismantled, trade between these markets would
even rise higher, Neumann added.
"I do believe the de-coupling will remain, growth of spending by Chinese consumers is
higher than US consumers," he said in response to a question on whether de-coupling
would remain in the next few years. However, he warned that the biggest risk was
inflationary pressure. If policy-makers are unable to tame inflation to prevent overheating
of their economies, it could lead to the bursting of the asset bubble. Then emerging
economies would become vulnerable and suffer a slump for many years.
Yet, Neumann said he did not think inflation would spiral upward as it did in 2008, when
crude oil prices exceeded $100 a barrel, but that the increase would be gradual.
He said he expected central banks in Asia to tighten monetary policy rates in order tame
inflation. Neumann also said he did not believe that Bank of Thailand would raise the
policy rate in the next meeting as it could afford a bit of inflationary pressure in order to
let the economy grow. He is also opti?mistic about the future of the Thai economy.
"Political headwinds are a short-term problem and the fundamentals of Thai economy is
very sound," Neumann said.
Thailand is expected to be among the top 30 largest economies in the world, led by China,
in 2050, according to HSBC's long-term projections. Thailand should climb by seven
places and be ranked at 22 among 30. The size of the economy is expected to be worth
$856 billion in 2050 and per capita income should rise to $11,674 from $2,744 in 2010.
There are many management approaches which talk about managing the things and
Operation in an organization. One of the famous modes to analyze the pattern of
management is Mc 7’s frame work. The 7’s model is better known as Mc Kinsey’s, this is
because the two persons who developed this module. Tompetus & Robert waterman has
been consultant at Mc Kinsey’s and co.
They described that an organization is not that just structured but consist of 7’s elements.
This can be distinguished into so called Hard S’s & Soft S’s. The model is very much
helpful in viewing the interrelationship of strategy formation and interpretation it focus
manger attention to a verification of activities. That may effect the implementation of any
strategy as the model originally developed as a way of thinking more broadly about the
problem of organizing effectively. It is a judge tool for the implementation of the strategy.
1. Hard S model
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2. Soft S model
The hardest elements are visible and easy to identify as they can be found in a
strategy elements, corporate plans, organization charts and other documentation of the
company. They are
1. Strategy
2. System
3. Structure
The soft element involves difficulty in describing there capabilities, values, and
elements of corporate culture. They are.
1. Style
2. Staff
3. Skills
4. Shared values
These Mc Kenzy’s framework is used in this research study to study about HSBC BANK.
➢ STRUCTURE:
The head office of HSBC bank is CHENNAI HSBC bank has various branches in &
around India. HSBC has various branches in Delhi, Calcutta, Chennai, Bangalore etc
covering various networks.HSBC has the client driven channel provides callers with easy
access to credit cards, banking as well as demat &clients can enquire about the products
offering of HSBC.
Functions:
Share Holders
Board members
Service Delivery
A Study on Customer Satisfaction Towards HSBC Bank
MARKETING DEPARTMENT
Functions:
FINANCE DEPARTMENT
Functions:
3. To allocate the costs incurred into 3 main categories namely factory, office, and
selling overhead.
4. To compare budged cost with actual cost and calculate the variance if any.
5. To advice the production department to decrease the cost, minimize wastage and
idle time.
6. To implement cost control technique and methods.
➢ STYLE:
Style refers to the employee’s shared & common ways of thinking & behaving unwritten
norms of behavior & thought. Style also refers to the way management behaves
&collectively spends its time to achieve organizational goals.
Sharing leadership is key to the white stag philosophy of leadership, because overtly
promotes the distribution of the function of the leader among the group.
An individual style in interacting with others is an outward sign of the substance within
experience, we can really tell a lot about people’s capabilities by looking at them but it is
better to watch them in action.
It has been observed in HSBC BANK that the behavior of superior towards the
subordinate is much decent & pleasant. The superior motivate the fresher who are working
under them. The superior tells the subordinate what exactly he has to do, the objective of
the work is clearly defined to them, any difficulty in accomplishing the task the superior
can be consulted & he/she guides in a proper direction.
It is also observed that while speaking to their subordinate, superiors move very friendly &
affectionately & moreover the views of subordinates are considered for decision making.
As a fresher I observed that the superiors respect our efficiency & they view us an
important participant in the objectives of the company as well as relationship with
subordinates. The superior in charge periodically conducts meetings with their
subordinates & set the tasks ahead, periodically seminars are conducted to get the new
updated information. SO THE LEADERSHIP STYLE FOLLOWED IN HSBC BANK IS
PARTICIPATIVE STYLE.
➢ STRATERGY:
The word strategy has been derived from Greek word “Strategos” which means general.
Strategy is the pattern of objectives, purposes, or goals stated in such a way as to define
what business the company is in or are to be in & the kind of company it is or it is to be
strategy is a systematic action & allocation of resources to achieve company aims.
Strategy of HSBC BANK: HSBC BANK seeks to perform its role in the social sector
through a dedication, not a profit group they are the social initiative group. The strategies
include the following initiatives:
This is in recognition of the fact that resources being limited, the efficient use is
imperative if the maximum number is to be benefited.
Cost effectiveness
The initiative drawn must be scalable; scalability implies the ability to draw upon
the important elements, it should be possible to do so at national level, even if the
program itself is not directly scalable it should be possible to take away significant
lessons from it in order to enrich work in other settings.
In order to achieve the achieve the desired objectives or goals in there focus areas,
the SIG (SOCIAL INTIATIVE GROUP) tends to support reasonably larged sized
initiatives so that issues such as cost effectiveness, scalability & impact assessment
can be dealt directly
➢ SYSTEMS:
In McKinsey’s 7s model, systems means any procedures & processes such as
manufacturing processes, management information system, budgeting & control
processes. In HSBC BANK the branch managers, relationship managers, & business
development executives are periodically reviewed of their performance and each branches
are ranked as per their branch performance & based on performance the branches ranked.
➢ SHARED VALUES:
Are the values shared by the members of an organization, shared values means that the
employees share the same guiding values. Values are things that you would strive for even
if they were demonstrably not profitable. Values act as an organization’s role in the larger
community in which it functions.
The organizations main values are stated in its VISION & MISSION STATEMENTS.
So it is the responsibility of every employee of the organization to share these values, so
that every employee of the organization can give their best for the achievements of these
values.
➢ STAFF:
Staff means that the company has hired able people, trains them well as per the job
specifications & assign them the right jobs. It is also observed that staff is given adequate
trainings to get exposed to recent techniques in their respective areas. The staff members
are also often job rotated to get exposed to various new tasks. Selection, training, reward,
recognition, retention, motivation & assignment to appropriate work are all key issues. So
it means how an organization effectively recruits, trains their people & assigns them the
right job.
Human capital is very important at HSBC; the numbers of employees are increasing
rapidly. HSBC BANK had just 445 employees in 1997, but in year 2002 the figures stood
at 7700, &presently the strength has increased to 14000 employees. Training is a big thing
at HSBC; each employee spends at least 69 hours during the year recharging himself.
(1) Receiving Teller's Department (Teller) - Receives, receipts for and proves deposits,
distributes checks to bookkeepers and other departments, prepares exchanges for clearing
houses, and turns cash over to the paying teller at end of day.
(2) Collection Department (Teller) - Collects notes, drafts and other "time" items when
payable out of town, and credits accounts of depositors when collections are advised paid.
(3) General Ledger Department (Bookkeepers) - Keeps the general or control accounts of
the bank, and makes up the bank's statement of condition.
(4) Auditor's Department (Executive) - This department is responsible for the settlement of
the various departments, reconciles the accounts with other banks, and certifies interest
calculations.
(5) Loan or Discount Department (Executive) - Receives notes submitted for discount or
makes loans, figures discount and interest, and has charge of collateral securing loans.
➢ SKILLS:
Skills refer to the fact that employees have the skills needed to carry out the company’s
strategy. Training and development help employees to do their jobs to perfection and also
helps in getting acquainted with latest techniques. The skill required in HSBC BANK
depends on the nature of work, their grades and designation.
4. SWOT analysis:
Humphrey, who led a research project at Stanford University in the 1960s and 1970s using
data from the Fortune 500 companies.
The aim of any SWOT analysis is to isolate the key environmental factors that are
important to the marketing plans of the organization. SWOT groups key pieces of
information into two main categories:
• Internal factors - The 'strengths' and 'weaknesses' internal to the organization, i.e.,
its strategies and its position in relation to its competitors.
STRENGTHS:-
1. Brand Name:
The biggest strength is the tag of HSBC is going to be the largest group of MNC’s.
2. Compatible Price:
Prices of different schemes of HSBC are much more compatible than others.
3. Diversified Schemes:
We have diversified schemes, which is an exception case of HSBC.
4. Less Risk:
Our debt schemes are 100% free form market risk. Even as our portfolio is that
diversified so equities are also less risky than others.
The main advantage of HSBC’s Debit cum ATM card is that you can access this
card through any VISA supported ATM’s & withdraw your amount, without any
single charge to be paid.
WEAKNESS:-
2 Tough Competitions:
There is a very tough competition because of large number of Asset Management
Companies.
3 Incapability of Customers:
HSBC only provides 2 types of account opening of which one is PVA (Power
Vantage Account) under which an aqb of 1 lakh is to be maintained & the second
one is Premier Account, under which an aqb of 25 lakh is to be maintained. This is
sometimes beyond the reach of a middle class person.
OPPORTUNITIES:-
1 Hoarding:
Most of the Indians have black money that too in huge amount i.e. the do not
have money in banks, so approaching them is beneficial, so that through the
opening of this account they can make further investment.
THREATS:-
1 Tough Competition:
As there are so many banks having almost same kind of schemes, so it’s tough to
compete with.
2 Unawareness:
Majority of population is not aware of HSBC brand name and even because of
other banking facilities which are much cheaper than HSBC’s services, so it’s
hard to convince people.
3 Changing Scenario:
Our market scenario is changing day-by-day i.e. our market is fluctuating, so this
makes investor hard to invest.
ASSETS
Cash and balances with Reserve Bank of India 39,716,165 37,123,770
Balances with banks and money at call and short notice 41,823,856 75,202,428
Investments 412,890,656 311,538,200
Advances 234,747,670 275,886,858
Fixed assets 8,928,756 8,353,196
Other assets 166,146,821 238,099,414
TOTAL 904,253,924 946,203,866
Contingent liabilities 8,509,535,228 8,147,158,513
Bills for collection 9,817,220 84,293,895
SUMMARY
From the above we can determine the financial position of the concern.
When comparing balance sheet of 2009 and 2010 the net worth of the company has been
increased in the year 2010 when compared to 2009. The total has been increased from
946,203,866Rs to 904,253,924Rs
It shows that the company is growing year by year.
Profit and loss account for the India Branches for the year ended 31 March 2010
31-Mar-10 31-Mar-09
INCOME:
Interest earned 51,658,815 63,269,285
Other income 21,354,836 26,994,218
TOTAL 73,013,651 90,263,503
EXPENDITURE
Interest expended 19,146,572 26,610,018
Operating expenses 19,501,215 21,946,691
Provisions and contingencies 26,266,735 28,793,982
APPROPRIATIONS
Less:
Transfer to statutory reserve 2,024,782 3,228,203
Transfer (from)/to investment reserve (335,667) 335,667
Transfer to specific reserve 206,523 84,427
1,377,429
Transfer to capital reserves ---
Balance carried over to balance sheet 15,468,006 9,264,515
TOTAL 17,363,644 14,290,241
When comparing Profit and loss account of 2009 and 2010, the net worth of the company
has been increased in the year 2010 when compared to 2009. The total has been increased
from 14,290,241Rs to 17,363,644Rs.It shows that the company is growing year by year.
6. LEARNING EXPERIENCE
The ten weeks summer project have helped me in learning a lot. This program helped me
in understanding the various aspects of banking industry. The training, at HSBC bank was
a new and challenging experience. It always remains as a dream, to get an opportunity to
take up such study at a private banking sector. Unlike private sectors, the employees
working in Public/Government sector do not have the right to take decision by themselves.
It was a great knowledge based and an excellent training program had in HSBC bank.
While at training exposure was gained on the working environment and also the decision
making process. It was a great learning experience working with the professional
personalities.
I collected all the required information of the second part of the Part A that is Company
profile and this gave me knowledge about the organization like their mission, vision, their
background, history etc...
The Part B of the project it was more like a practical experience. The staff member’s
encourage and guided me in understanding the internal aspect of the bank like how their
bank structure is, their various department and their functions. They gave me a complete
insight into their strategies-like what is strategy they are adopting now and in the future to
achieve goals of the company.
The bank structure which prescribes the formal relationship among various position &
activities were clearly defined. HSBC bank develops such kind of relationship which
creates confidential understanding between the staff and department. The members in the
bank were friendly and co-operative, disciplined, and prompt in their work. They make
performance appraisal once in a year for promoting the employees. Decision is taken by
taking the views of all the concerned employees who are affected by that decision.
Employee’s suggestions are well-come and rewarded. They conduct training and
development programs after identifying need for that. They organize both internal and
external training.
The style which company is following is participative in nature. The decisions were made
in the company and the report will be submitted to all departments. The staff members
were well co-ordinate and supportive with each other.
I learnt what is the present position of the bank through the SWOT analysis.
It is very much necessary to understand the theoretical concepts of the subject. These will
make an ease for the study and also helps to work efficiently. But during the training
period it is needless to say that the theoretical knowledge gained at class room is entirely
different from actual practice within the organization.
To conclude we may say that, to study the complete organization, pertaining to the nature
of the business that they carry, nature of the work flow, ten weeks is very short, there was
PART-B
CHAPTER-1
1. GENERAL INTRODUCTION
Customer Satisfaction:
Customer satisfaction is equivalent to making sure that product and service performance
meets customer expectations. It is the perception of the customer that the outcome of a
business transaction is equal to or greater than his/her expectation. Customer satisfaction
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A Study on Customer Satisfaction Towards HSBC Bank
occurs when the acquisition of products and /or services provides a minimum negative
departure from expectations when compared with other acquisitions and when the
marginal utility of a transaction is equal to or greater than preceding acquisitions.
Customer satisfaction occurs when the perception of the reward from the purchase of
goods or services by the customer meets or exceeds his/her perceived sacrifice. The
perception is a consequence of matching past purchase and consumption experience with
the current purchase.
When we talk about customer service and/or satisfaction, we talk about creativity.
Creativity allows us to handle or diffuse problems at hand or later on rather in the process
of conducting the everyday business. We talk about how, or what, does the organization
have to do to gain not only the sale but also the loyalty of the customer. We want to know
the payoff of the transaction both in the short and long term. We want to know what our
customers Want? We want to know if our customers are satisfied. Satisfaction, Of course,
means that what we delivered to a customer met the customer’s Approval. We want to
know if customers are delighted and willing to come
Back, and so on. Fleiss 2 and Feldman 3 present examples of that delightfulness in their
writings. Fleiss has written about Ben and Jerry’s ice cream and Feldman has discussed
excellence in a cab ride. As important as delightfulness is, some of us minimize it, or even
totally disregard it. At this point, we fail. Some of the issues that will guarantee failure in
sales, satisfaction, and loyalty are:
The customer is the person or unit receiving the output of a process on the system. In fact,
it is worth emphasizing that a customer can be the immediate, intermediate, or ultimate
Level 1. Expectations are very simple and take the form of assumptions, must have, or
take it for granted. For example, I expect the airline to be able to take off, fly to my
destination, and land safely. I expect to get the correct blood for my blood transfusion and
I expect the bank to deposit my money to my account and to keep a correct tally for me.
Level 2. Expectations are a step higher than that of level 1 and they require some form of
satisfaction through meeting the requirements and/or specifications. For example, I expect
to be treated courteously by all airline personnel. I went to the hospital expecting to have
my hernia repaired, to be in some pain after it was done, to be out on the same day, and to
receive a correct bill. And I went to the bank expecting the bank teller to be friendly,
informative, and helpful with my transactions.
Level 3. Expectations are much higher than for levels 1 and 2. Level 3 requires some kind
of delightfulness or a service that is so good that it attracts me to it. For example, an
airline gives passengers traveling coach class the same superior food service that other
airlines provide only for first-class passengers. In fact, I once took a flight where the flight
attendants actually baked
cookies for us right there on the plane. When I went to the hospital, I expected staff to
treat me with respect and they carefully explained things to me. But I was surprised when
they called me at home the next day to find out how I was doing. And at my house closing,
the bank officer, representing the bank holding my mortgage, not only treated me with
respect and answered all my questions about my new mortgage, but just before we shook
hands to close the deal, he gave me a housewarming gift.
Increase revenue.
Reduce costs.
➢ It also helps the company to understand the level of customer satisfaction and
feedback from the customers regarding their services and sales of the products.
➢ The data collected and interpreted will be useful for the company and the reader of
the project. Various findings, observations and valuable suggestions,
recommendations help the company to materialize its future plans.
➢ The research study also helps to find out the demand potential for HSBC bank.
The first part is a study of the banking industry, HSBC Bank using secondary data
sources. This secondary information has been sourced from the internet and from business
related magazines and newspapers.
The second part of the study has been done using an exploratory research process and a
structured questionnaire was developed for this purpose. For the collection of primary
data this was the only method used. The reason I used this method is because a need was
felt for the free influx of information about the products. Also this method allowed the use
of skills gained in class.
Sample Design:
The population considered for the purpose of the survey was people residing in Bangalore.
Since the information required was not of a very technical nature and also looking at the
scope of the project and the extent of the target segment, the sampling technique employed
was Convenience Sampling. I administered the questionnaires.
Sample Size:
I have restricted the sample size to 50 respondents. This was done keeping in mind the
time constraints and the fact that I felt that this number would be enough to serve the
information needs required to show the trends.
• The time constraint was that the respondents gave only limited time for the data
collection.
• Due to limited time period and constrained working hours for most of the
respondents, the answers at times were vague.
• The finding of this study was based on the assumptions that the respondents have
diverged true and honest information.
• Sampling size is restricted to 50 respondents only.
• The study also limited due to various constraints like time, manpower resources
and financial availability and also primary data.
• Making accurate predictions relating to customer behavior is very difficult.
• The views and responses of the respondents may change over a period of the time.
• The bias of the respondents may have introduced errors in the survey findings.
TABLE-1
Analysis:
The above table shows that out of 100% respondents, 54% of the Male respondents and
46% of the Female respondents.
CHART-1
Interpretation:
• From the survey it is observed that majority of the respondents are Male that is 54%.
TABLE-2
1 20-30 6 12%
2 30 – 40 24 48%
3 40 – 50 13 26%
4 Above 50 7 14%
TOTAL 50 100%
Analysis:
From the above we observe that 6 respondent are from the age 20-30,
CHART-2
Interpretation:
From the above we observe that 12% of respondent are from the age 20-30,
TABLE-3
2 160001 to 500000 35 70
TOTAL 50 100
Analysis:
CHART-3
Interpretation
From the above table
• 26% of the respondents are annual income up to 1600000
• 70% of the respondents are annual income from 160001 to 500000
TABLE-4
2 Professional 7 14
3 salaried person 26 52
4 Student 3 6
5 Other’s 5 10
TOTAL 50 100
Analysis:
From above graph 26 respondents from salaried persons, 9 respondents from businesses men, 7
respondents from professionals, 3 students and 5 others include housewives.
CHART-4
Interpretation:
From above graph 52% of the respondents from salaried persons, 18% of the
respondents from businesses men, 14% of the respondents from professionals, 6%
are from students and 10% others include housewives.
TABLE-5
Table-5: Showing attributes compelled you to most open saving account in any bank
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Bangalore Page 54
A Study on Customer Satisfaction Towards HSBC Bank
TOTAL 50 100%
Analysis: The above tables showing out of 50 respondents, 15 choose the bank based on
the attribute of ATM and DEBIT CARDS, 10 respondents choose the bank on the attribute
of Cheque Book, 6 respondents choose the bank on the basis of INTERNET
BANKING/PHONE BANKING, 9 respondents choose the bank on the attribute of
WORKING HOURS, 10 respondents choose on the attributes of VALUE ADDED
SERVICES.
CHART-5
Chart-5: Showing attributes compelled you to most open saving account in any bank.
Interpretation: - The above pie chart states that 20% of the total sample choose the bank
on the attribute of Cheque Book, 12% of the respondents choose the bank on the attribute
of Internet Banking, 18% of the respondents choose the bank on the basis of Working
Hours, 20% of the respondents choose the bank on the basis of Value Added services,
30% of the total sample select the bank on the basis of ATM cum DEBIT Cards.
TABLE-6
SBI 20 40%
Others 5 10%
TOTAL 50 100%
Analysis: The above tables showing out of 50 respondents, 20 respondents are having
their bank account in SBI Bank, 11 respondents are having their bank account in HSBC
Bank, 8 respondents are having their bank account in HDFC Bank, 6 respondents are
having their bank account in Axis bank, and 5 respondents are having their bank account
in other Banks.
CHART-6
Interpretation: The above bar graph showing out of 100%, 40% respondents are having
their bank account in SBI Bank, 22% respondents are having their bank account in HSBC
Bank, 16% respondents are having their bank account in HDFC Bank, 12% respondents
are having their bank account in Axis bank, and 10% respondents are having their bank
account in other Banks.
TABLE-7
Saving 20 40%
Current 5 10%
Fixed 15 30%
NRI 6 12%
Others 4 8%
Total 50 100%
Analysis: The above tables showing out of 50 respondents, 20 respondents are having
saving account, 5 respondents are having current account, 15 respondents are having fixed
bank account, 6 respondents are having their NRI account and 4 respondents are having
other type of bank account.
CHART-7
Interpretation: The above graph showing out of 100% respondents, 40% of respondents
are having saving account, 10% of respondents are having current account, 30% of
respondents are having fixed bank account, 12% respondents are having their NRI account
and 8% of respondents are having other type of bank account.
TABLE-8
Table-8: Shows the respondents response towards HSBC Bank whether it provides
better facilities than SBI and HDFC Bank.
YES 19 38%
NO 22 44%
TOTAL 50 100%
Analysis: The above table showing that out of 50 respondents, 19 respondents agrees that
HSBC Bank provides better facilities than the SBI and HDFC bank. 22 respondents don’t
agree that HSBC Bank provides better facilities than the SBI and HDFC bank and 9
respondents are not in a position to say anything about Banks.
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A Study on Customer Satisfaction Towards HSBC Bank
CHART-8
Chart-8: Shows the respondents response towards HSBC Bank whether it provides
better facilities than SBI and HDFC Bank.
Interpretation: The above pie chat that out of 100% population, 38% population agrees
that HSBC Bank provides better facilities than the SBI and HDFC bank. 44% population
doesn’t agree that HSBC Bank provides better facilities than the SBI and HDFC bank and
18% population is not in a position to say anything about Banks.
TABLE-9
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Bangalore Page 60
A Study on Customer Satisfaction Towards HSBC Bank
Table-9: Showing the rank of product offered by HSBC Bank than other with
reference to respondents.
Rating 5 4 3 2 1
Good 14 28%
Moderate 9 18%
Less 6 12%
Poor 4 8%
TOTAL 50 100%
Analysis: The above table shows that out of 50 respondents, 17 respondents says that
HSBC Bank products are Very Good than others, 14 respondents says Good, 9
respondents says the products are Moderate, 6 respondents says the products are less
satisfactory one and only 4 respondents says the products are poor.
CHART-9
Chart-9: Showing the rank of product offered by HSBC Bank than other with
reference to respondents.
Interpretation: The above Pie graph shows that out of 100% population, 34% population
says that HSBC Bank products are Very Good than others, 28% population says good,
18% population says the products are Moderate, 12% population says the products are less
satisfactory one and only 8% population says the products are poor.
TABLE-10
Table-10: Showing the number of points given by the respondents to HSBC Bank
based upon the service.
Flexibility 43 43%
Others 8 8%
Analysis: The above table shows that out of 100 points, 28 points are given to the less
formality of service, 43 points are given to the flexibility, 21 points are given to the less
documentation and only 8 points are given to the other services.
CHART-10
Chart-10: Showing the number of points given by the respondents to HSBC Bank
based upon the service.
Interpretation: The above pie chart shows that out of 100%, 28% is given to the less
formality of service, 43% is given to the flexibility, 21% is given to the less
documentation and only 8% points are given to the other services.
TABLE-11
Satisfied 34 34%
Moderate 20 20%
Dissatisfied 26 26%
Extremely Dissatisfied 8 8%
Analysis: The above table shows out of 100 points the respondent given rating according
to his satisfactory level, 12 points are given to Extremely Satisfied, 34 points are given to
satisfied attribute, 20 points are given to Moderate attribute, 26 points are given to
dissatisfied and 8 points are given to Extremely dissatisfied attribute.
CHART-11
Interpretation: The above pie graph shows out of 100% the respondent given rating
according to his satisfactory level, 12% is given to Extremely Satisfied, 34% is given to
satisfied attribute, 20% is given to Moderate attribute, 26% is given to dissatisfied and 8%
is given to Extremely dissatisfied attribute.
TABLE-12
Excellent 6 12%
Good 25 50%
Average 9 18%
Bad 6 12%
Very bad 4 8%
Total 50 100%
Analysis:
From the above table overall experience of respondents with HSBC Bank
6 of the respondents had an excellent experience in HSBC Bank,
25 of the respondents had good experience in HSBC Bank,
9 of the respondents had Average experience in HSBC Bank
6 of the respondents felt remain neutral,
4 of the respondent’s bad experience in HSBC Bank
CHART-12
Interpretations:
From the above chart overall experience of respondents with HSBC Bank
12% of the respondents had an excellent experience in HSBC Bank,
50% of the respondents had good experience in HSBC Bank,
18% of the respondents had Average experience in HSBC Bank
12% of the respondents felt remain neutral,
TABLE-13
Table-13: Showing specific brand awareness about HSBC Bank among respondents.
Analysis: The above tables showing out of 50 respondents, 43 respondents know about
HSBC Bank Only 7 respondents are not aware of it.
CHART- 13
Chart-13: Showing specific brand awareness about HSBC Bank among respondents.
Interpretation: - The above pie chart states that 86% of the total sample knows about
HSBC Bank. Only 14% of the total population does not know about HSBC Bank. From
the above interpretation it is clear that although HSBC Bank is a strong brand amongst the
financial investors, people of Bangalore-city do not know much about the company.
TABLE-14
Total 50 100%
Analysis: The above table showing that out of 50 respondents, 45 respondents trusts on
HSBC Bank and only 5 respondents does not trust on HSBC Bank.
CHART-14
Interpretation: 90% of the respondents have a trust at HSBC Bank, 10% of the
respondents don’t have a trust at HSBC Bank.
TABLE-15
Table-15: Showing that the respondents opinion about using sales promotional
activity.
Analysis: the above table showing that out of 50 respondents, 28 respondents suggested
that bank has to use sales promotional activity.
CHART-15
Chart-15: Showing that the respondents opinion about using sales promotional
activity
Interpretation: The bank still needs a lot to be done as far as publicity is concerned. The
following chart depicts that 55% people says that the bank needs more publicity
TABLE-16
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Bangalore Page 68
A Study on Customer Satisfaction Towards HSBC Bank
Table-16: Showing that the respondents opinion about using suitable media by the
bank for advertisement.
Analysis: the above table showing that out of 50 respondents, 24 respondents suggested
that television as an effective media for advertisement.
CHART-16
Chart-16: Showing that the respondents opinion about using suitable media by the
bank for advertisement.
Interpretation: The most preferred media chosen by most of the people is television as
they more deeply come to know about the features of the product through it.
6) From the study it is observed that most of the respondents have their account in
SBI Bank.
7) From the study it is observed that 20of the respondents have saving type of
account.
8) Out of the 50 respondents interviewed it is found that 19 of the respondents are
agreeing that HSBC is providing better facilities.
9) From the study it is observed that 17of the respondents have rated very good for
the product offered by HSBC.
10)From the study it is observed that 43 points are given by the respondents towards
flexibity service of HSBC Bank.
11) From the study it is observed that 34% of the respondents are satisfied by the
service offered by HSBC Bank.
12) From the study it is observed that 25 respondents have good experience in HSBC
Bank.
13) From the study it is observed that majority of the respondents are aware of HSBC
Bank.
14) From the study it is observed that majority of the respondents agree that HSBC
Bank is a trust worthy bank.
15)From the study it is observed that 56% of the respondents says that the bank still
needs publicity.
16)From the study it is observed that 48%of the respondents say’s that television is the
suitable media for the advertisement of HSBC Bank.
3.2 SUGGESTIONS
1) HSBC as a player focused on maintaining and /or improving Market share in key
business segments, particularly retail lending- Will, in our view, benefit immensely form a
positive operating Environment.
2.) Pricing power in consumer financing segment profitability against potential shocks.
3.) HSBC enjoys a dominant market position across customer Categories in retail
lending. The strong market position and robust Demand for consumer financing vests
significant pricing power With HSBC is believed either by allowing a hike in lending
rates, Negotiating higher subvention form manufacturers of cutting Distribution costs.
4.) Strong pricing power and a balance sheet that is significantly biased towards retail
lending buffers HSBC profitability from in the bank's funding cost.
5.) In line with consensus, we recommend buy HSBC for growth Reasons and not for the
relative valuation appeal. It is not so much about HSBC but about their respective
operating metrics and growth conditions. Market has rewarded both strategies: HSBC
broad-based strategy allows capturing value across the Value chain in a customer segment;
and HSBC like other large players in the private sector, enjoys favorable conditions
arising from a restrictive regulatory/policy Environment towards new entrants and foreign
banks and slow Pace of reforms for state-owned banks is believed.
4.CONCLUSION:
Thus, HSBC has been able to use technology to provide value-added service to its
customers during the last few years. For HSBC, technology is an integral part of their
business. However, their overall progress could have been smoother but for certain
internal and extraneous factors and also a pressure on spread due to a competitive market
(Annual report, 2000 –01). E-banking has become a necessary survival weapon and is
fundamentally changing the banking industry worldwide. Today, the click of the mouse
offers customers banking services at a much lower cost and also empowers them with
unprecedented freedom in choosing vendors for their financial service needs. No country
today has a choice- whether to implement E-banking or not given the global and
competitive nature of the economy. HSBC have to upgrade and constantly think of new
innovative customized packages and services to remain competitive. The invasion of
banking by technology has created an information age and commoditization of banking
services. HSBC have come to realize that survival in the new e-economy depends on
delivering some or all of their banking services on the Internet while continuing to support
their traditional infrastructure. The rise of E-banking is redefining business relationships
and the most successful banks will be those that can truly strengthen their relationship
with their customers. Without any doubt, the international scope of E-banking provides
new growth perspectives and Internet business is a catalyst for new technologies and new
business processes.