SUMMER TRAINING REPORT ON CUSTOMER SATISFACTION REGARDING HDFC BANK SUBMITTED TO

In the partial fulfillment of the Degree requirement towards the MASTER OF BUSINESS ADMINISTRATION (MBA)
SESSION (2008-2010) Submitted By: VARUN BAWA MBA-(3rd sem) Roll No. 81407317174 Faculty Guide: Sr. Lect. Arti Mehta CTIMIT Jalandhar

CT INSTITUTE OF MANAGEMENT AND IT

DECLARATION

hereby

declare

that

project

entitled submitted

CUSTOMER SATISFACTION to PUNJAB TECHNICAL

REGARDING

HDFC

BANK

UNIVERSITY, JALANDHAR in partial fulfillment of the requirement for Master Degree of business administration (SEM IIIrd) is my original work. It is by my own and not copied one from other.

VARUN BAWA MBA 3RD SEM 81407317174 Dated: ___________

CT INSTITUTEOF MGT. AND IT

GUIDERS CERTIFICATE
2

This is to certify that the survey entitled, CUSTOMER SATISFACTION REGARDING HDFC BANK submitted in partial fulfillment of the requirement for the award of degree of Masters of Business Administration (MBA) from Punjab Technical University, Jalandhar is a bonafide summer training project work carried out by VARUN BAWA, under my supervision and guidance and to the best of my knowledge and information, no part of summer training project work has been submitted for any other degree or diploma.

Sr. Lect. Arti Mehta

CTIMIT
Jalandhar

Acknowledgement
3

This project report bears the imprint of those who had rendered their wholehearted support and encouragement without whose help this effort of mine would be in vain. I express my deep sense of gratitude and sincere thanks to my project guide Sr.Lect. Arti Mehta for his directions, suggestion and information provided which were of utmost importance for the successful completion of the project. I am also thankful to Mr. Rajiv Bhatia for his proper guidance. I thankful to the employees of HDFC Bank for assisting me in the timely completion of project. At last, I also thank to my family and my friends those helped me in my training period and in the completion of project.

VARUN BAWA

PREFACE

Without practical training, management education is meaningless so long with the theory; practical training is provided to management students to expose them to the actual working environment of any organization. Such training provides a framework of knowledge relating to the concepts and practices of the assigned topics in the organization. The summer training is an integral part of the course curriculum of Master of Business Administration (M.B.A. 3rd). In this the student is in the position to analyze the integral working of an organization with mature eyes and understand the dynamics in a much better manner. This particular project has been conducted at HDFC Bank. In the first phase of the research project, there is a introduction of Banking, company profile and products of HDFC Bank are given. After that a market research is performed with a sample size of 100 people. The research study was limited to Gurdaspur. Here, in my survey, I have contacted the respondents through personal interviews with the help of questionnaires. The main objective of the research is to know the customer satisfaction level and their perception regarding HDFC Bank and to know the customer awareness regarding the HDFC Banks products. HDFC Bank should lay more stress on advertisements, both in print as well as in other media. Opening up the sector will certainly mean new products, better packaging and improved customer service. Both new and existing players will have to explore new distribution and marketing channels. Potential buyers for most of Banks lie in the middle class. Competitors must segment the market carefully to arrive at appropriate products and pricing. Recognizing the potential, in the past three years, the nationalized Banks have already begun to target niches like pensions, women, children and rural peoples.

EXECUTIVE SUMMARY

The report contains the organizational study done at HDFC Bank. The report title is CUSTOMER SATISFACTION REGARDIND HDFC BANK. The report gives an overview of the banking Sector and company profile. And awareness of customers about different types of products and services offered by HDFC Bank. This study was conducted to find out the customer satisfaction regarding HDFC bank. The methodology adopted for the study was through a structured questionnaire, which is targeted to the different persons in Gurdaspur. For this purpose sample size of 100 was taken. The data collected from the different persons was analyzed thoroughly and presented in the form of charts and tables. HDFC must advertise regularly and create brand value for its products and services. Most of its competitors like ICICI, Axis, kotak Mahindra and nationalized banks use television advertisements to promote their products. The Indian consumer has a false perception about private banks they feel that it would not safe. Safety and returns are the two main reasons people invest in banks. On the whole HDFC bank is a good place to work at. Every new recruit is provided with extensive training on the products of HDFC. This training enables an advisor/sales manager to market the policies better. The company should try to create awareness about itself in India. . With an improvement in the sales techniques used, a fair bit of advertising and modifications to the existing product portfolio, HDFC would be all set to capture the banking market in India as it has around the globe.

CONTENTS Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Subject Covered Introduction to the study Introduction to the Banking History of Banking in India Banking structure in India Indian Banking Industry Upcoming Foreign Banks in India HDFC BANK Company Profile Key Executives Technology used in HDFC Bank Products and customer segments Business strategy Inside HDFC Bank Human resource Rupees earned-Rupees spend Recent development Achievements in 2009 SWOT Analysis Objectives Research methodology Data analysis & interpretation Page No. 1 2 3-4 5 6 7 8 9-10 11 12 13-16 17 18-22 23 24 25-26 28 29-30 31 32-33 34-51 7

22 23 24 25 26

Findings Suggestions Limitations Conclusion Bibliography

52 53 54 55 56

INTRODUCATION TO THE STUDY

What is customer satisfaction?

Customer satisfaction refers to how satisfied customers are with the products or services they receive from a particular agency. The level of satisfaction is determined not only by the quality and type of customer experience but also by the customers expectations. A customer may be defined as someone who has a direct relationship with, or is directly affected by your agency and Receives or relies on one or more of your agencys services or products.

Customers in human services are commonly referred to as service users, consumers or clients. They can be individuals or groups. An organization with a strong customer service culture places the customer at the centre of service design, planning and service delivery. Customer centric organizations will: Determine the customers expectations when they plan listen to the customer as they design. Focus on the delivery of customer service activities value customer feedback when they measure performance.

Why is it important?
There are a number of reasons why customer satisfaction is important in Banking Sector: Meeting the needs of the customer is the underlying rationale for the existence of community service organizations. Customers have a right to quality services that deliver outcomes. Organizations that strive beyond minimum standards and exceed the expectations of their customers are likely to be leaders in their sector. Customers are recognized as key partners in shaping service development and assessing quality of service delivery.

The process for measuring customer satisfaction and obtaining feedback on organizational performance are valuable tools for quality and continuous service improvement.

INTRODUCATION TO BANKING

Banking means accepting the deposits from the customers for lending to the needy and extending the other services as to issue of dd etc.nowadays after introduction of private sector banks the banks have become a profit centre and the functions become changed and now banks are doing the insurance and mutual funds also. but nationalised banks are still service oriented in extending loans for Education loan, and rural development activities. A Bank is an organization which lends money to the borrowers for a purposeful task, and provides a facility to deposit and withdraw money when needed and charge for it.

HISTORY OF BANKING IN INDIA

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Phase I The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks, mostly Europeans shareholders. 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 India was vested with extensive powers for the supervision of banking in India as the Banking Authority. During those days public has lesser confidence in the banks. As an aftermath deposit mobilisation 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 nationalised 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 nationalised in 1960 on 19th July, 1969, major process of nationalisation was carried out. It was the effort of the then Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country were nationalised. Second phase of nationalisation 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: 1949: Enactment of Banking Regulation Act. 1955: Nationalisation of State Bank of India. 1959: Nationalisation of SBI subsidiaries. 1961: Insurance cover extended to deposits. 1969: Nationalisation of 14 major banks. 1971: Creation of credit guarantee corporation. 1975: Creation of regional rural banks.

11

1980: Nationalisation of seven banks with deposits over 200 crore. After the nationalisation 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%. 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 liberalisation 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.

BANKING STRUCTURE IN INDIA

12

Scheduled Banks in India (A) Scheduled Commercial Banks Public sector Banks
(28) Nationalized Bank Other Public Sector Banks (IDBI) SBI and its Associates

Private sector Banks

(27)

Foreign Banks in India

(29)

Regional Rural Bank

(102)

(B) Scheduled Cooperative Banks

Scheduled Urban Cooperative Banks (55) Scheduled State Cooperative Banks (31)

Here we more concerned about private sector banks and competition among them. Today, there are 27 private sector banks in the banking Sector: 19 old private sector banks and 8 new private sector banks. These new banks have brought in state-of-the-art technology and aggressively marketed their products. The Public sector banks are facing a stiff competition from the new private sector banks. The banks which have been setup in the 1990s under the guidelines Of the Narasimham Committee are referred to as NEW PRIVATE SECTOR BANKS.

INDIAN BANKING INDUSTRIES

13

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 countrys 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 Industry is in the middle of an IT revolution, focusing on the expansion of retail and rural banking. Players are becoming increasingly customer - centric in their approach, which has resulted in innovative methods of offering new banking products and services. Banks are now realizing the importance of being a big player and are beginning to focus their attention on mergers and acquisitions to take advantage of economies of scale and/or comply with Basel II regulation. Indian banking industry assets are expected to reach US$1 trillion by 2010 and are poised to receive a greater infusion of foreign capital, says Prathima Rajan, analyst in Celent's banking group and author of the report.The banking industry should focus on having a small number of large players that can compete globally rather than having a large number of fragmented players."

UPCOMING FOREIGN BANKS IN INDIA

14

By 2009 to 2010 few more names is going to be added in the list of foreign banks in India. This is as an aftermath of the sudden interest shown by Reserve Bank of India paving roadmap for foreign banks in India greater freedom in India. Among them is the world's best private bank by Euro Money magazine, Switzerland's UBS.

The following are the list of foreign banks going to set up business in India:-

Royal Bank of Scotland Switzerland's UBS US-based GE Capital Credit Suisse Group Industrial and Commercial Bank of China

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WE UNDERSTAND YOUR WORLD

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. HDFC is Indias premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1977, the Corporation has maintained a Consistent and healthy growth in its operations to remain the market leader in mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. With its experience in the financial markets, a strong market reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment. HDFC Bank began operations in 1995 with a simple mission to be a World Class Indian Bank. It realized that only a single minded focus on product quality and service excellence would help us get there. Today, the Bank is proud to say that it is well on its way towards that goal.

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COMPANY PROFILE

STRONG NATIONAL NETWORK

HDFC BANK

HDFC bank ltd provides various financial products and services. It operates in three segments: Retail Banking, Wholesale Banking, and Treasury. The Retail banking segment provides various deposit products, including savings Accounts, current accounts, fixed deposits, and demat accounts. It also offers Auto, personal, commercial vehicle, home, gold, and educational loans; loans Against securities and property and health care finance Working capital finance, construction equipment finance, and warehouse Receipt loans, as well as credit cards, debit cards, depository, investment Advisory, bill payments, and transactional services. In addition, this segment Sells third party financial products, such as mutual funds and insurance, as Well as distributes life and general insurance products through its tie-ups with insurance companies and mutual fund houses. The wholesale banking Segment provides loans, non-fund facilities, and transaction services to large Corporate, emerging corporate, small and medium enterprise, supply chain, Public sector undertaking, central and state government departments, and Institutional customers. It offers deposit and transaction banking products, Supply chain financing, working capital and term finance, agricultural loans, and funded non-funded treasury, and foreign exchange products. This segments 17

services include trade services, cash management, and money Market, custodial, tax collection, and electronic banking. In addition, it provides correspondent bank services to cooperative banks, private banks, foreign banks, and regional rural banks. The Treasury Services segment operates primarily in areas, such as foreign exchange, money market, interest rate trading, and Equities. As of March 31, 2009 HDFC bank had a network of 1,142 branches And 3,295 automated teller machines in 528 cities in India. The company was founded in 1994 and is based in Mumbai, India.

March 2006 Cities Branches ATMs

228 535 1323

March 2007
316 684 1605

March 2008
327 761 1977

March 2009
528 1142 3295

As of March 31, 2008, the Banks distribution network was at 761 Branches and 1977 ATMs in 327 cities as against 684 branches and 1,605 ATMs in 316 cities as of March 31, 2007. Against the regulatory approvals for new branches in hand, the Bank expects to further expand the branch network by around 150 branches by June 30, 2008. During the year, the Bank stepped up retail customer acquisition with deposit accounts increasing from 6.2 million to 8.7 million and total cards issued (debit and credit cards) increasing from 7 million to 9.2 million. Whilst credit growth in the banking system slowed down to about 22% for the year ended 2008-09, the Banks net advances grew by 35.1% with retail advances growing by 38.6% and wholesale advances growing by 30%, implying a higher market share in both segments. The transactional banking business also registered healthy growth with cash management volumes increased by around 80% and trade services volumes by around 40% over the previous year. Portfolio quality as of March 31, 2008 remained healthy with gross nonperforming assets at 1.3% and net non-performing assets at 0.4% of total customer assets.

KEY
Deepak Parekh

EXECUTIVES

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Executive Chairman Aditya Puri Managing Director, Director, Member of Investors Grievance (Share) Committee, Member of Fraud Monitoring Committee, Member of Premises Committee, Member of Credit Approval Committee and Member of Risk Monitoring Committee Adil Patrawala Chief Operating Officer of HDFC Securities Limited and Whole time Director of HDFC Securities Limited

Sunil Shah
Managing Director of HDFC Securities Limited and Director of HDFC Securities Limited. Harish Engineer Head of Wholesale Banking, Executive Director and Member of Customer Service Committee. Paresh Sukthankar Head of Credit, Market Risk & Investor Relations, Executive Director and Member of Risk Monitoring Committee. Debajeet Das VP, Treasury

TECHNOLOGY USED IN HDFC BANK

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In the era of globalization each and every sector faced the stiff competition from their rivals and world also converted into the flat from the globe. After the policy of liberalization and RBI initiatives to take the step for the private sector banks, more and more changes are taking the part into it. That are create competition between the private sector banks and public sector bank. Private sector banks are today used the latest technology for the different transaction of day to day banking life. As we know that Information Technology plays the vital role in the each and every industry and gives the optimum return from the limited resources. Banks are service industry and today it gives the innovative Technology application to Banking industries. HDFC BANK is the leader in the industries and today IT and HDFC BANK together combined they reached the sky. New technology changed the mind of the customers and changed the queue concept from the history banking transaction. Today there are different channels are available for the banking transactions. There are drastically changes seen in the use of Internet banking, in a year 2001 (2%) and in the year 2008 (25%). This type of technology gives the freedom to retail customers.

Centralized Processing Units Electronic Processing Straight Through

Derived Economies of Scale Reduced Transaction Cost Improve cost efficiency, Cross sell Provide new or superior products

Data Warehousing , CRM Innovative Technology Application

HDFC BANK is the very consistent player in the new private sector banks. New private sector banks to withstand the competition from public sector banks came up with innovative products and superior service.

HDFC BANK PRODUCT AND CUSTOMER SEGMENTS

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PERSONAL BANKING

Loan Product
Auto Loan Loan Against Security Loan Against Property Personal loan Credit card 2-wheeler loan Commercial vehicles finance Home loans Retail business banking Tractor loan Working Capital Finance Construction Equipment Finance Health Care Finance Education Loan Gold Loan

Deposit Product
Saving a/c Current a/c Fixed deposit Demat a/c Safe Deposit Lockers

Investment & Insurance

Mutual Fund Bonds Knowledge Centre Insurance General and Health Insurance Equity and Derivatives Mudra Gold Bar

Cards
Credit Card Debit Card Prepaid Card

Payment Services
NetSafe Merchant Prepaid Refill Billpay Visa Billpay InstaPay DirectPay VisaMoney Transfer eMonies Electronic Funds

Access To Bank
NetBanking OneView InstaAlert Mobile Banking ATM Phone Banking Email Statements Branch Network

-------------------------------Forex Services ------------------------------- Product & Services Trade Services

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Forex service Branch Locater RBI Guidelines

Transfer Online Payment of Direct Tax

WHOLESALE BANKING
Corporate
Funded Services Non Funded Services Value Added Services Internet Banking

Small and Medium Enterprises

Funded Services Non Funded Services Specialized Services Value added services Internet Banking

Financial Institutions and Trusts

BANKS Clearing Sub-Membership RTGS sub membership Fund Transfer ATM Tie-ups Corporate Salary a/c Tax Collection Financial Institutions Mutual Funds Stock Brokers Insurance Companies Commodities Business Trusts

BUSINESS MIX

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Total Deposits

Gross Advances

Net Revenue

Retail

Wholesale

HDFC Bank is a consistent player in the private sector Bank and have a well balanced product and business mix in the Indian as well as overseas markets. Customer segments (retail & wholesale) account for 84% of Net revenues (FY 2008) Higher retail revenues partly offset by higher operating and credit costs. Equally well positioned to grow both segments.

NRI SERVICES

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Accounts & Deposits

Rupee Saving a/c Rupee Current a/c Rupee Fixed Deposits Foreign Currency Deposits Accounts for Returning Indians

Remittances
North America UK Europe South East Asia Middle East Africa Others Quick remit India Link Cheque Lockbox Telegraphic/ Wire Transfer Funds Transfer Cheques/DDs/TCs

Investment & Insurances

Mutual Funds Insurance Private Banking Portfolio Investment Scheme

Loans
Home Loans Loans Against Securities Loans Against Deposits Gold Credit Card

Payment Services
Net Safe Bill Pay InstaPay Direct Pay Visa Money Online Donation

Access To Bank
Net Banking One View InstaAlert ATM Phone Banking Email Statements Branch Network

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BUSINESS STRATEGY

HDFC BANK mission is to be "a World Class Indian Bank", benchmarking themselves against international standards and best Practices in terms of product offerings, technology, service levels, risk management and audit & compliance. The objective is to build sound customer franchises across distinct businesses so as to be a preferred provider of banking services for target retail and wholesale customer segments, and to achieve a healthy growth in profitability, consistent with the Bank's risk appetite. Bank is committed to do this while ensuring the highest levels of ethical standards, professional integrity, corporate governance and regulatory compliance. Continue to develop new product and technology is the main business strategy of the bank. Maintain good relation with the customers is the main and prime objective of the bank.

HDFC BANK business strategy emphasizes the following:

Increase market share in Indias expanding banking and financial services industry by following a disciplined growth strategy focusing on quality and not on quantity and delivering high quality customer service. Leverage our technology platform and open scaleable systems to deliver more products to more customers and to control operating costs. Maintain current high standards for asset quality through disciplined credit risk management. Develop innovative products and services that attract the targeted customers and address inefficiencies in the Indian financial sector. Continue to develop products and services that reduce banks cost of funds. Focus on high earnings growth with low volatility.

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INSIDE HDFC BANK

FIVE S, PART OF KAIZEN WORK PLACE TRANSFORMATION Focus on effective work place organization Believe in Small changes lead to large improvement
Every successful organization has their own strategy to win the race in the competitive market. They use some technique and methodology for smooth running of business. HDFC BANK also acquired the Japanese technique for smooth running of work and effective work place organization.

Five S Part of Kaizen is the technique which is used in the bank For easy and systematic work place and eliminating unnecessary things from the work place.

BENEFIT OF FIVE S
It can be started immediately. Every one has to participate. Five S is an entirely people driven initiatives. Brings in concept of ownership. All wastages are made visible.

FIVE S Means:26

S-1 S-2 S-3 S-4 S-5

SORT SYSTEMATIZE SPIC-N-SPAN STANDARDIZE SUSTAIN

SEIRI SEITON SEIRO SEIKETSU SHITSUKE

(1) SORT:It focuses on eliminating unnecessary items from the work place. It is excellent way to free up valuable floor space. It segregates items as per require and wanted.

Frequently Required

Wanted but not required

Remove everything from workplace

Junk

Less Frequently Required

Junk

(2) SYSTEMATIZE:Systematize is focus on efficient and effective Storage method. That means it identify, organize and arrange retrieval. It largely focuses on good labeling and identification practices. Objective: - A place for everything and everything in its place.

(3) SPIC- n - SPAN:27

Spic-n-Span focuses on regular clearing and self inspection. It brings in the sense of ownership.

(4) STANDERDIZE:It focuses on simplification and standardization. It involves standard rules and policies. It establish checklist to facilitate autonomous maintenance of workplace. It assigns responsibility for doing various jobs and decides on Five S frequency.

(5) SUSTAIN:It focuses on defining a new status and standard of organized work place. Sustain means regular training to maintain standards developed under S-4. It brings in self- discipline and commitment towards workplace organization.

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LABELLING ON FILE

FILE NUMBER SUBJECT FROM DATE TO DATE OWNER

BOX LABEL
For Example
1/3/A/6 1 Work Station (1) 3 Drawer (3) A - Shelf (A) 6 File Number (6)

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COLOUR CODING OF FILES

DEPARTMENT Welcome Desk Personal Banker Teller Relationship Manager Branch Manager Demat Others

In the HDFC BANK each department has their different color coding apply on the different file. Due to this everyone aware about their particular color file which is coding on it and they save their valuable time. It is a part of Kaizen and also included in the system of the Five S. Logic behind it that, the color coding is always differentiating the things from the similar one.

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HUMAN RESOURCES

The Banks staffing needs continued to increase during the year particularly in the retail banking businesses in line with the business growth. Total number of employees increased from 14878 as of March31, 2006 to 21477 as of March 31, 2007. The Bank continues to focus on training its employees on a continuing basis, both on the job and through training programs conducted by internal and external faculty. The Bank has consistently believed that broader employee ownership of its shares has a positive impact on its performance and employee motivation. The Banks employee stock option scheme so far covers around 9000 employees.

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RUPEE EARNED - RUPEE SPENT

It is more important for every organization to know about from where and where to spent money. And balanced between these two things rupee earned and rupee spent are required for smooth running of business and financial soundness. This type of watch can control and eliminate the unnecessary spending of business. In this diagram it include both things from where Bank earned Rupee and where to spent.

HDFC BANK earned from the Interest from Advances 51.14 %, Interest from Investment 27.12 %, bank earned commission exchange and brokerage of 15.25 %. These are the major earning Sources of the bank. Bank also earned from the Forex and Derivatives and some other Interest Income. Bank spent 39.75 % on Interest Expense, 30.27 % on Operating Expense and 14.58 % on Provision. Bank also spent Dividend and Tax on dividend, Loss on Investment, Tax. As we discuss above that balancing is must between these two for every organization especially in the era of globalization where there are stiff competition among various market players.

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RECENT DEVELOPMENT

The Reserve Bank of India has approved the scheme of amalgamation of Centurion Bank of Punjab Ltd. with HDFC Bank Ltd. with effect from May 23, 2008.

All the branches of Centurion Bank of Punjab will function as branches of HDFC Bank with effect from May 23, 2008. With RBIs approval, all requisite statutory and regulatory approvals for the merger have been obtained.

The combined entity would have a nationwide network of 1167 branches; a strong deposit base of around Rs.1,22,000 crores and net advances of around Rs.89,000 crores. The balance sheet size of the combined entity would be over Rs.1,63,000 crores.

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Merger with Centurion Bank of Punjab Limited

On March 27, 2008, the shareholders of the Bank accorded their consent to a scheme of amalgamation of Centurion Bank of Punjab Limited with HDFC Bank Limited. The shareholders of the Bank approved the issuance of one equity share of Rs.10/- each of HDFC Bank Limited for every 29 equity shares of Re. 1/- each held in Centurion Bank of Punjab Limited. This is subject to receipt of Approvals from the Reserve Bank of India, stock exchanges and other requisite statutory and regulatory authorities. The shareholders Also accorded their consent to issue equity shares and/or warrants convertible into equity shares at the rate of Rs.1,530.13 each to HDFC Limited and/or other promoter group companies on preferential basis, subject to final regulatory approvals in this regard. The Shareholders of the Bank have also approved an increase in the authorized capital from Rs.450 crores to Rs.550 crores.

Promoted in 1995 by Housing Development Finance Corporation (HDFC), India's leading housing finance company, HDFC Bank is one of India's premier banks providing a wide range of financial products and services to its over 11 million customers across hundreds of Indian cities using multiple distribution channels including a pan-India network of branches, ATMs, phone banking, net banking and mobile banking. Within a relatively short span of time, the bank has emerged as a leading player in retail banking, wholesale banking, and treasury operations, its three principal business segments. The bank's competitive strength clearly lies in the use of technology and the ability to deliver world-class service with rapid response time. Over the last 13 years, the bank has successfully gained market share in its target customer franchises while maintaining healthy profitability and asset quality.

As on March 31, 2008, the Bank had a network of 761 branches and 1,977 ATMs in 327 cities. For the year ended March 31, 2008, the Bank reported a net profit of INR 15.90 billion (Rs.1590.2crore),up 39.3%, over the corresponding year ended March 31, 2007. As of March 31, 2008 total deposits were INR 1007.69 billion,(Rs.100,769 crore) up 47.5% over the corresponding year ended March 31, 2007. Total balance sheet size too grew by 46.0% to INR 1,331.77 billion (133177 crore). Leading Indian and international Publications have recognized the bank for its performance and quality.

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Centurion Bank of Punjab is one of the leading new generations Private sector banks in India. The bank serves individual consumers, small and medium businesses and large corporations with a full range of financial products and services for investing, lending and advice on financial planning. The bank offers its customers an array of wealth management products such as mutual funds, life and general insurance and has established a leadership position. The bank is also a strong player in foreign exchange services, personal loans, mortgages and agricultural loans. Additionally the bank offers a full suite of NRI banking products to Overseas Indians. On 29th August 2007, Centurion Bank of Punjab merged with Lord Krishna Bank (LKB), post obtaining all requisite statutory and regulatory approvals. This merger has further strengthened the geographical reach of the Bank in major towns and cities across the country, especially in the State of Kerala, in addition to its existing dominance in the northern part of the country. Centurion Bank of Punjab now operates on a strong nationwide franchise of 404 branches and 452 ATMs in 190 locations across the country, supported by employee base of over 7,500 employees. In addition to being listed on the major Indian stock exchanges, the Banks shares are also listed on the Luxembourg Stock Exchange.

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ACHIEVEMENT IN 2009

UTI MF-CNBC TV18 Financial Advisor Awards 2009

Best Performing Bank

Business Standard Best Banker Award Mr. Aditya Puri, MD, HDFC Bank Fe Best Bank Awards - Best Innovator of the year award for MD Mr. Aditya Puri 2009 Second Best Private Bank in India - Best in Strength and Soundness Award Euro 2009 money Awards 'Best Bank in India'

Economic Times Brand Equity & Nielsen Research annual survey Most Trusted Brand - Runner Up 2009 Asia Money Awards IBA Technology 2009 2009 'Best Domestic Bank in India' Banking 'Best IT Governance Award - Runner up' Awards 'Best Trade Finance Bank in India for 2009

Global Finance Award

IDRBT Banking 'Best IT Governance and Value Delivery' Technology Excellence Award 2008 Asian Banker 'Asian Banker Best Retail Bank in India Award 2009 ' Excellence in Retail Financial Services

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SWOT ANALYSIS

STRENGTH
Right strategy for the right products. Superior customer service vs. competitors. Great Brand Image Products have required

WEAKNESSES
Some gaps in range for certain sectors. Customer training. Processes and systems, etc Management cover insufficient. Sectoral growth is constrained by low unemployment levels and competition for staff service staff needs

accreditations. High degree of customer

satisfaction. Good place to work Lower response time with

efficient and effective service. Dedicated workforce aiming at making a long-term career in the field.

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Opportunities

Threats

Profit margins will be good. Could extend to overseas broadly. New specialist applications. Could seek better customer deals. Fast-track basis. career development

Legislation could impact. Great risk involved Very high competition prevailing in the industry.

Vulnerable to reactive attack by major competitors

opportunities on an industry-wide

Lack of infrastructure in rural areas could constrain investment.

An applied research centre to create opportunities for developing techniques to provide added-value services.

High volume/low cost market is intensely competitive.

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OBJECTIVES OF THE STUDY

To know the customer satisfaction level and their perception regarding HDFC Bank. To know the customer awareness regarding the Banks products. To know the level of interest of customer regarding the different schemes of bank. To know the preference of customer regarding the extra services. To know the problems of customer regarding bank.

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RESEARCH METHODOLOGY
Research is a careful investigation or inquiry especially through search for new facts in branch of knowledge: market research specifies the information. Required to address these issues: designs the method for collecting information: manage and implements the data collection process analyses the results and communicates the finding and their implications. Research problem is the one which requires a researcher to find out the best solution for the given problem that is to find out the course of action, the action the objectives can be obtained optimally in the context of a given environment.

RESEARCH DESIGN
A framework or blueprint for conducting the research project. It specifies the details of the procedures necessary for obtaining the information needed to structure and/or solve research problems. A good research design lays the foundation for conducting the project. A good research design will ensure that the research project is conducted effectively and efficiently. Typically, a research design involves the following components, or tasks:

Define the information needed. Design the research. Specify the measurement and scaling procedures. Construct and present a questionnaire or an appropriate form for data collection. Specify the sampling process and sampling size. Develop a plan of data analysis.

Data Collection: - The objectives of the project are such that both primary and secondary
data is required to achieve them. So both primary and secondary data was used for the project. The mode of collecting primary data is questionnaire mode and sources of secondary data are various magazines, books, newspapers, & websites etc.

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1. Primary Data: The primary data was collected to measure the customer satisfaction
and their perception regarding HDFC Bank. The primary data was collected by means of questionnaire and analysis was done on the basis of response received from the customers. The questionnaire has been designed in such a manner that the consumers satisfaction level can be measured and consumer can enter his responses easily.

2. Secondary Data: The purpose of collecting secondary data was to achieve the
objective of studying the recent trends and developments taking place in banking.

Sample size
100 customers were selected.

Sampling Unit
Gurdaspur

Sampling Technique
Convenient sampling.

Analysis and Interpretation

After the data collection, it was compiled, classified and tabulated manually and with help of computer. Then the task of drawing inferences was accomplished with the help of percentage and graphic method.

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1.

For how long you are part of HDFC Bank?

No. of Respondents
20 37 14 29 100

Response
Less than 6 Months Less than 1 Year Less than 2 Years More than 2 Years Total

%age of Respondents
20% 37% 14% 29% 100%

20% 29%

14%

37%

Less than 6 Months Less than 2 Years

Less than 1 Year More than 2 Years

Interpretation:
From the above graph it is clear that majority of the respondents are part of HDFC Bank from last one year i.e. 37%; 29% of the respondents are part of HDFC Bank from last more than 2 years; 20% respondents from 6 months and remaining 14% respondents are part of HDFC Bank for last two years.

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2. What are reasons that attract you to be a customer of the bank?

Response
Image Extra Services Services All of above

No. of Respondents
25 25 45 5

%age of Respondents
25% 25% 45% 5%

45 40 35 30 25 20 15 10 5 0 image Extra services services all of above

image

Interpretation:
From the above graph it is clear that majority of the respondents i.e. 45% are become part of HDFC Bank because of its services; 25% because of its image; 25% because of its extra services and rest because of all the three factors.

3.

Are you aware of the different services offered by HDFC Bank?

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Response
Yes No Total

No. of Respondents
91 9 100

%age of Respondents
91% 9% 100%

9%

91%
Yes No

Interpretation:
From the above graph it is clear that majority of the respondents are aware of products and services offered by HDFC Bank i.e. 91% and 9% respondents are not aware of services offered by HDFC Bank.

4. Do you know about these following services of the bank?

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Response
Saving a/c Fixed deposits Current a/c Demat a/c Credit cards Mutual funds Loans

No. of Respondents
100 100 53 5 25 16 95

%age of Respondents
100% 100% 53% 5% 25% 16% 95%

120 100 80 60 40 20 0

saving a/c fixed deposits current a/c demat a/c credit cards mutual funds loans

Interpretation:
From the above graph it is clear that majority of the respondents are aware of saving a/c & FDs i.e. 100%.53% are aware about current a/c, 5% demat a/c, 25% credit card, 16% mutual fund and 95% are aware of loans.

5. Which of these services are you using?

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Response
Saving a/c Fixed deposits Current a/c Demat a/c Credit cards Mutual funds Loans

No. of Respondents
65 58 40 3 0 10 47

%age of Respondents
65% 58% 40% 3% 0% 10% 47%

70 60 50 40 30 20 10 0

saving a/c

saving a/c fixed deposits current a/c demat a/c credit card mutual funds loans

Interpretation:
From the above graph it is clear that majority of the respondents are using saving a/c i.e. 65%.58% are using FDs, 40% current a/c, 3% demat a/c, 0% credit card, 10% mutual fund and 47% are aware of loans.

6. Which of these services are you further interested in?

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Response
Saving a/c Fixed deposits Current a/c Demat a/c Credit cards Mutual funds Loans

No. of Respondents
20 24 10 0 0 23 19

%age of Respondents
20% 24% 10% 0% 0% 23% 19%

30 25 20 15 10 5 0 saving a/c FD's current a/c demat a/c credit cards mutual funds loans

Interpretation:
From the above graph it is clear that majority of the respondents are interesting in FDs i.e. 24%,20% are interesting in saving a/c, 40% current a/c, 23% mutual fund, 19% in loans and no body is interesting in credit cards and demat a/cs.

7. Which service of the bank would you rate the best?

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Response
Saving a/c Fixed deposits Current a/c Demat a/c Credit cards Mutual funds Loans

No. of Respondents
33 40 12 0 0 10 5

%age of Respondents
33% 40% 12% 0% 0% 10% 5%

40 35 30 25 20 15 10 5 0
Interpretation:
From the above graph it is clear that 33% of the respondent rate saving a/c, the best product. 40% said FDs are best. 12% said current a/c.10% said about mutual funds.5% said about loans and no one rate demat a/c & credit card.

saving a/c FD's current a/c demat a/c credit cards mutual funds loans

8. Do you know about the Extra services being provided by the bank?
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Response
Yes No

No. of Respondents
69 41

%age of Respondents
69% 41%

69%

yes no

Interpretation:
From the above graph it is clear that 69% of the respondents are known about the innovative services and the rest is unknown about it.

9. Which of the following Extra service of the bank would you like to go in for?

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Response
Phone banking ATM Net banking Bill payment Non of these All of these

No. of Respondents
5 60 10 10 5 10

%age of Respondents
5% 60% 10% 10% 5% 10%

all of these non of these bill payment net banking ATM phone banking

20

40

60

80

Interpretation:
From the above graph it is clear that 5% of the respondents would like to go for phone banking, 60% for ATMs, 10% for net banking, 10% for bills payment, 5% dont want any innovative services and 10% want all these services.

10. What is your perception about the service of the bank?

Response No. of Respondents %age of Respondents
50

Good Average Poor

35 55 10

35% 55% 10%

60 50 40 30 20 10 0 Good Average Poor

Interpretation:
From the above graph it is clear that 35% of the respondents found the service of HDFC Bank good, 55% found it average and 10% found it poor.

11. Are you satisfied with the dealing of the bank officials?
Response
Yes No

No. of Respondents
30 25

%age of Respondents
30% 25% 51

To some extent

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45%

45 40 35 30 25 20 15 10 5 0 TO some extent Yes NO

Interpretation:
From the above graph it is clear that 30% of the respondents are satisfied with the dealing of the bank officials, 45% are not fully satisfied and 25% are dissatisfied.

12. Any problem you are facing regarding the bank?

Response No. of Respondents %age of Respondents
52

Timeliness Customer relationship Infrastructure Others

78 12 10 0

78% 12% 10% 0%

80 70 60 50 40 30 20 10 0
Interpretation:
From the above graph it is clear that 78% of the respondent facing the problem of timeliness, 12% customer relationship and 10% of infrastructure.

Timeliness Customer relationship Infrastrusture Other

13. How likely are you to recommend Bank services to a friend or colleague?
Response
Very unlikely Somewhat unlikely Neither likely nor unlikely Somewhat likely

No. of Respondents
8 30 17 35

%age of Respondents
8% 30% 17% 35% 53

Very likely

10

10%

very unlikely somewhat unlikely neither likely nor unlikely somewhat likely very likely

Interpretation:
From the above graph it is clear that 8% of the respondents are unlikely to recommend the products of HDFC Bank to their friends and colleagues, 30% said somewhat unlikely, 17% said neither likely nor unlikely, 35% said somewhat likely and 10% said very likely.

14. How will you rate the HDFC Bank in maintaining good customer relationship?
Response
Good Average Poor

No. of Respondents
20 57 33

%age of Respondents
20% 57% 33%

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bad Average good

Interpretation:
From the above graph it is clear that 20% of the respondents said HDFC Bank is good in maintaining customer relationship, 57% said it is average and rest 33% said it is poor in the maintenance.

15. What is your overall satisfaction rating with our bank?

Response
Very dissatisfied Somewhat dissatisfied Neither satisfied nor dissatisfied Very satisfied Somewhat satisfied

No. of Respondents
2 9 21 48 20

%age of Respondents
2% 9% 21% 48% 20%

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Rating of the company

very dissatisfied somewhat dissatisfied neither satisfied very satisfied 150 somewhat satisfied 21 48 20 9 2 0

50

100

Interpretation:
From the above graph it is clear that 48% of the respondents are very satisfied with the bank, 20% are somewhat satisfied, 21% are neither satisfied nor dissatisfied, 9% are somewhat dissatisfied and 2% are very much dissatisfied with the bank.

FINDINGS OF THE STUDY

Majority of the customers are satisfied with HDFC Bank.

Majority of the customers are aware of services and extra services offered by HDFC Bank. But not all the services. The majority of the customers found services of the bank are average.

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Majority of the respondents are found the bank is average in maintaining the good customer relationship.

Majority of the respondent said that they are facing the problem of timeliness and rest are facing problem of customer relationship and infrastructure.

The perception of the majority of the customer regarding the bank is good because majority of the customers are satisfied with the bank and they also recommend the products of the bank.

The most preferable extra service is ATMs and the less preferable services are bills payment, net banking and phone banking.

The majority of customers are more interested in FDs, mutual funds and saving a/cs. The majority of the customers are satisfied with the dealing of the officials upto some Main factor that attract customers towards bank is the services of the bank. Services that are most used by the customer are saving a/c, FDs, current a/c and

extent.

loans.

SUGGESTIONS AND RECOMMENDATIONS

More stress should give on the advertisement and promotional activities. The Bank should make some efforts to improving good relationship with customer. The bank should enhance their services according to the needs of the customer.

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The bank makes its procedures less time consuming. The bank should make effort to aware the customers about their all the extra services.

LIMITATIONS OF THE STUDY

It is said, Nothing is perfect and if the quite is true, I am sure that there would be few shortcoming in this project also. Sincere efforts have been made to eliminate discrepancies as far as possible but few would have reminded due to limitations of the study. These are: The research was carried out in a short period.

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 Limited sample size. The information given by the respondent might be biased some of them might not be interested to given correct information. Some of the respondents of the survey were unwilling to share information.

CONCLUSION
At the end I would like to conclude that The Indian banking market is growing at an astonishing rate, with Assets expected to reach US$1 trillion by 2010. HDFC bank had a

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network of 1,142 branches And 3,295 automated teller machines in 528 cities in India.. The majority of customers are satisfied. But the bank should target on the rest of the customers who are not satisfied. The customers are aware about the banks services but the Bank should try to create more awareness among people. HDFC Bank should lay more stress on advertisements, both in print as well as in other media for this purpose. Number of formalities should reduce, as customer feels irritated with lots of formalities and it will save the time of customer and Bank also.

BIBLIOGRAPHY

www.bnknetindia/com/banking/finance http://en.wikipedia.org/wiki/bankingfinancialcompany www.hdfcbank.com

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www.hdfcbank/products/finance www.google.com

www.iloveindia.com.

QUESTIONNAIRE
Name ______________________ Gender _____________________ Age _______________________ Occupation _________________ 61

Annually Income _____________

e-mail _____________________

Address _____________________________________________________

1.

For how long you are part of HDFC Bank? Less than 6 Months Less than 2 Years ( ) ( ) Less than 1 Year More than 2 Years ( ) ( )

2. What are reasons that attract you to be a customer of the bank? a) its image b) its service c) products d) all of the above 3. ( ) ( ) ( ) ( )

Are you aware of the different services offered by HDFC Bank? Yes ( ) No ( )

4. Do you know about these services of the banking industry? a) Savings a/c b) Fixed deposits c) Current a/cs d) Demat a/cs Yes/no yes/no yes/no yes/no 62

e) Credit card f) Insurances g) Mutual funds h) Loans

yes/no yes/no yes/no yes/no

5. Which of these products are you using? a) Savings a/c b) Fixed deposits c) Current a/c d) De-mat a/c e) Credit card a/c f) Insurance g) Mutual finds h) Loans yes/no yes/no yes/no yes/no yes/no yes/no yes/no yes/no

6. Which of these products are you more interested in? a) Savings a/c B) Fixed deposits c) Current a/c d) De-mat a/c e) Credit card a/c f) Insurance g) Mutual finds h) Loans yes/no yes/no yes/no yes/no yes/no yes/no yes/no yes/no

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7. Which services of the banks would you rate the best? a) Saving a/c b) Fixed deposits c) Current a/c d) De-mat a/c e) Credit card a/c f) Insurance g) Mutual finds h) Loans

8. Do you know about the extra services being provided by the bank? a) Yes b) No

9. Which of the following extra service of the banks would you Like to go in for? a) Phone banking b) ATM c) Net banking ( ) ( ) ( )

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d) Mobile banking e) Bill payment f) None of these g) All of these

( ) ( ) ( ) ( )

10. What is your perception regarding the service of the bank? a) Good b) Average c) Poor ( ) ( ) ( )

11. Are you satisfied with the dealing of the bank officials? a. Yes b. No c. To some extend ( ) ( ) ( )

12. Any problem you are facings regarding the bank? Timeliness ( ) Customer relationship ( ) Infrastructure ( ) Others ( )

13. How likely are you to recommend Bank services to a friend or colleague? (1) Very unlikely (2) Somewhat unlikely (3) Neither likely nor unlikely (4) Very likely (5) Somewhat likely ( ( ( ( ( ) ) ) ) )

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14. How will you rate the HDFC Bank in maintaining good customer relationship? (1) Good ( ) (2) Average ( ) (3) Poor ( ) 15. What is your overall satisfaction rating with our company? (1) Very dissatisfied ( ) (2) Somewhat dissatisfied ( ) (3) Nether satisfied nor dissatisfied ( ) (4) Very satisfied ( ) (5) Somewhat satisfied ( )

Thanks for participating in the survey.

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