CHAPTER-I INTRODUCTION

The project was carried out for understanding the customer preference towards the services of HDFC banks attributes towards saving Account of HDFC Bank and its market potential.HDFC Bank was established in the year 1994, they are old player in banking sector,HDFC Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches in Belgium and Germany. 1958: Mr.G.L.Mehta appointed the second Chairman of HDFC Ltd. 1960: HDFC building at 163, Backbay Reclamation, inaugurated. Functional Departments of the Organisation:The functional department of the organization consists of the HR department, the administrative department and the executive department. The HR department of the organization consists of the people who employ the Persons who they think would be able to do justice with the job handled.The administrative department of the organization consists of the director and the manager of the organization. They preside the organization and control all the operations of the organization such that the organization could run in a smooth and effective manner.The executive department of the organization consists of the various employees Who execute the job undertaken by them. The

employees consists of the team leaders, the Corporate financial consultants,. the telecallers, various staffs and junior staffs who are the main structural framework of the organization. HDFC Human Resources department plans and direct for the employee population as well as they are having the following functions as: Hiring Promotions Reassignments Position classification and grading Salary determination Performance appraisal review and processing Personnel data entry and records maintenance Policy development Work permitting immigration visa program Workers compensation Finance Department:

The Finance Manager is responsible for all aspects of the accounting and financial administration of the HDFC, the supervision of the implementation of the HDFC financial policies, directives and procedures and the initiation of the financial plans within the guidelines of HDFC The department 3

contains several distinct sections, each of which is responsible for a proportion of the activities taking place within the finance department.

Marketing Consultancy Department: The Marketing Consultancy Department plays and important role within the Fund as it studies and analyzes marketing information in order to build solid base for management decisions. The division also assists projects sponsors in formulating solid marketing strategies to improve their industries and strengthen their position in the local and international markets.

Research Department: The Research Department is having the capacity to act through four composing units i.e., the market research unit, economic studies unit, and statistical studies unit. It is the mission of the division to provide support BANK for information and consultancy to the senior management and division in the areas of economic, statistical and marketing information and consultancy through data analysis, processing of economic and statistical data, market research studies and publishing related periodical reports.

Organization Structure and Organization Chart:The organization structure of the company HDFC is such that it comprises of the departments and the employees in the hierarchical order so that they are able to perform their functions and duties smoothly and effectively doing their job in a manner in which it should be done. The organization is headed by the administrative department which coordinates and controls the executive

department. The executive department is a link from the top and the bottom comprising of the lower level employees such that they work together to fulfill the common objective of getting business from the persons who get in touch with them and see to it that they are provided with the best of the BANK which constitute giving financial advise to providing Account to the customers. The lower level employees and the corporate financial consultants work together to see to it that the database for providing financial BANK to sufficient number of people is made .They work together to see to it that this database is followed and worked upon such that more and more number of people get themselves avail the financial BANK of the organization. Team leaders who form the part of the administrative department of the Organization make sure that the clients that turn up for the financial BANK are dealt with most efficiently and effectively.

THE PRODUCTS OF THE COMPANY ARE CATEGORIZED INTO VARIOUS SECTIONS WHICH ARE AS FOLLOWS: A. Deposits: There are many products in HDFC BANK like Fixed Deposit, Savings Account, Current Account, Recurring Account, NRI Account, Corporate Salary Account, Free Demat Account, Kids Account, Senior Citizen Scheme, Cheque Facilities, Overdraft Facilities, Free Demand Draft Facilities, Locker Facilities, Cash Credit Facilities, etc. They are listed and explained as follows: 1. Fixed Deposit: The deposit with the bank for a period, which is specified at the time of making the deposit is known as fixed deposit. Such deposits are also known as FD or term deposit .A FD is repayable on the expiry of a specified period. The rate of interest and other terms and conditions on which the banks accepted FD were regulated by the RBI, in section 21 and 35A of the Banking 5

Regulation Act 1949.Each bank has prescribed their own rate of interest and has also permitted higher rates on deposits above a specified amount. RBI has also permitted the banks to formulate FD schemes specially meant for senior citizen with higher interest than normal.

2. Savings Account: Saving bank account is meant for the people who wish to save a part of their current income to meet their future needs and they can also earn in interest on their savings. The rate of interest payable on by the banks on deposits maintained in savings account is prescribed by RBI. Now-a-days the fixed deposit is also linked with saving account. Whenever there is excess of balance in saving account it will automatically transfer into Fixed deposit and if there is shortfall of funds in savings account , by issuing cheque the money is transferred from fixed deposit to saving account. Different banks give different name to this product. 3. Current Account: A current account is an active and running account, which may be operated upon any number of times during a working day. There is no restriction on the number and the amount of withdrawals from a current account. Current account, suit the requirements of a big businessmen, joint stock companies, institutions, public authorities and public corporation etc. 4. Recurring Deposit: A variant of the saving bank a/c is the recurring deposit or cumulative deposit a/c introduced by banks in recent years. Here, a depositor is required to deposit an amount chosen by him. The rate of interest on the recurring deposit account is higher than as compared to the interest on the saving account. Banks open such accounts for periods ranging from 1 to 10 years.. The recurring deposit account can be opened by any number of persons, more than one person jointly or severally, by a guardian in the name of a minor and even by a minor.

5. NRI Account: NRI accounts are maintained by banks in rupees as well as in foreign currency. Four types of Rupee account can be open in the names of NRI: a. Non Resident Rupee Ordinary Account (NRO) b. Non Resident External Account (NRE) c. Non Resident ( Non Repatriable Deposit Scheme ) ( NRNR) d. Non Resident ( special)Rupee Account Scheme ( NRSR) Apart from this, foreign currency account is the account in foreign currency. The account can be open normally in US Dollar, Pound Sterling, Euro. The accounts of NRIs are Indian millenium deposit, Resident foreign currency, housing finance scheme for NRI investment schemes. 6. Corporate Salary Account: Corporate Salary account is a new product by certain private sector banks, foreign banks and recently by some public sector banks also. Under this account salary is deposited in the account of the employees by debiting the account of employer. The only thing required is the account number of the employees and the amount to be paid them as salary. In certain cases the minimum balance required is zero. All other facilities available in savings a/c is also available in corporate salary account. 7. Demat Account: Dematerialization is a process by which physical share certificates / securities are taken back by the company or registrar and destroyed ultimately. An equivalent number of shares are credited electronically to customers depository account. Just like saving/current account with a bank one can open a securities account with the depository through a depository participant. 7

8. Kids Account ( Minor Account ) : Children are invited as customer by certain banks. Under this, Account is opened in the name of kids by parents or guardians. The features of kids account are free personalized cheque book which can be used as a gift cheque , internet banking , investment services etc. 9. Senior Citizenship Scheme: Senior citizens can open an account and on that account they can get interest rate somewhat more than the normal rate of interest. This is due to some social responsibilities of banks towards aged persons whose earnings are mainly on the interest rate.

B. Loans and Advances:

The main business of the banking company is lending of funds to the constituents, mainly traders, business and industrial enterprises. The major portion of a banks funds is employed by way of loans and advances, which is the most profitable employment of its funds. There are three main principles of bank lending that have been followed by the commercial banks and they are safety , liquidity, and profitability. Banks grant loans for different periods like short term, medium term, long term and also for different purpose. 1. Personal Loans: This is one of the major loans provided by the banks to the individuals. There the borrower can use for his/her personal purpose. This may be related to his/her business purpose. The amount of loan is depended on the income of the borrower and his/her capacity to repay the loan.

2. Housing Loans: NHB is the wholly own subsidiary of the RBI which control and regulate whole industry as per the guidance and information. The purpose of loan is mainly for purchase, extension, renovation, and land development. 3. Education Loans: Loans are given for education in country as well as abroad. 4. Vehicle Loans: Loans are given for purchase of scooter, auto-rickshaw, car, bikes etc. Low interest rates, increasing income levels of people are the factors for growth in this sector. Even for second hand car finance is available. 5. Professional Loans: Loans are given to doctor, C.A, Architect, Engineer or Management Consultant. Here the loan repayment is normally done in the form of equated monthly. 6. Consumer Durable Loans: Under this, loans are given for acquisition of T.V, Cell phones, A.C, Washing Machines, Fridge and other items. 7. Loans against Shares and Securities: Finance against shares are given by banks for different uses. Now-a-days finance against shares are given mostly in demat shares. A margin of 50% is normally accepted by the bank on market value. For these loans the documents required are normally DP notes, letter of continuing security, pledge form, power of attorney. This loan can be used for business or personal purpose.

RETAIL BANKING SERVICES

1. CREDIT CARDS: A credit card is an instrument, which provides immediate credit facilities to its holder to avail a variety of goods and services at the merchant outlets. It is made of plastic and hence popularly called as Plastic Money. Such cards are issued by bank to persons with minimum income ranging between RS 50000 and RS 100000 per annum and are accepted by a variety of business establishments which are notified by the card issuing bank. Some banks insist on the cardholder being their customers while others do not. Few banks do not charge any fee for issuing credit cards while others impose an initial enrollment fee and annual fee also. If the amount is not paid within the time duration the bank charges a flat interest of 2.5%. Leading Indian Banks such as : SBI, BOB, Canara Bank, ICICI, HDFC and a few foreign banks like CITIBANK, Standard Chartered etc are the important issuers of credit card in India. 2. DEBIT CARDS: It is a new product introduced in India by Citibank a few years ago in association with MasterCard. A debit card facilitates purchases or payments by the cardholder .It debits money from the account of the cardholder during a transaction. This implies that the cardholder can spend only if his account permits. 3. NET BANKING: This facilitates the customers to do all their banking operations from their home by using the internet facility. With Net Banking one can carry out all banking and shopping transactions safely and with total confidentiality. 10

With Net Banking one can easily perform various functions:

a. Check Account Balance b. Download Account Statement c. Request for a stop payment of a cheque. d. Request for a new cheque book. e. Access demat account f. Transfer funds. g. Facilitate bill Payments. h. Pay Credit Card dues instantly. 4. MOBILE BANKING: Using mobile banking facility one can a. Check Balance b. Check last three transactions. c. Request for a statement d. Request for a cheque book. e. Enquire on a cheque status. f. Instruct stock cheque payment. g. View FD details. h. Transfer funds. i. Pay Utility Bills.

5. PHONE BANKING: 11

It helps to conduct a wide range of banking transactions from the comfort of ones home or office. Using phone banking facility one can: a. Check Balance b. Check last three transactions. c. Request for a cheque book. d. Transfer funds. e. Enquire on a cheque status, and much more.

6. ANYWHERE BANKING: One can deposit or withdraw cash from any branch of a particular bank all over the country up to a prescribed limit. One can also transfer funds. 7. AUTOMATED TELLER MACHINES (ATM): ATMs features user-friendly graphic screens with easy to follow instructions. The ATMs interact with customers in their local language for increased convenience. HDFC Banks ATM network is one of the largest and most widespread ATM network in India. Following are the features available on ATMs which can be accessed from anywhere at anytime: a. Cash Withdrawal b. Cash Deposit c. Balance Enquiry d. Cheque Book Request e. Transaction at various merchant establishments. 8. SMART CARD:

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The smart card, a latest additional to the world of banking and information technology has emerged as the largest volume driven end-product in the world due to its data portability, security and convenience. Smart Card is similar in size to todays plastic payment card, it has a memory chip embedded in it. The chip stores electronic data and programmes that are protected by advanced security features. When coupled with a reader, the smart card has the processing power to serve many different applications. As an access-control device, smart cards make personal and business data available only to appropriate users. To ensure the confidentiality of all banking service, smart cards have mechanisms offering a high degree of security. These mechanisms are based on private and public key cryptography combined with a digital certificate, one of the most advanced security techniques currently available. Infact, it is possible to connect to the web banking service without a smart card.

So What does Customer Preference Means? Customer Perception is an important component of an organizations relationship with their customers. Customer satisfaction is a mental state which results from the customers comparison of expectations prior to a purchase with performance perception after a purchase. Customer Perception on Service: Customer Service is the service provided in support of a companys core products. Customer Service most often includes answering questions, taking orders, dealing with billing issues, handling complaints, and perhaps

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scheduling maintenance or repairs. Customer Service can occur on site, or it can occur over the phone or via the internet. Many companies operate customer service call centers, often staffed around the clock. Typically there is no charge for customer service. Quality customer service is essential to building customer relationships. It should not, however, be confused with the services provided for sale by a company. Services tend to be more intangible than manufactured products. There is a growing market for services and increasing dominance of services in economies worldwide. There are generally two types of customer expectations. The highest can be termed as desired service: the level of service the customer hopes to receive. The threshold level of acceptable service which the customers will accept is adequate service. Yet there is hard evidence that consumers perceive lower quality of service overall and are less satisfied. Possible reasons may be With more companies offering tiered service based on the calculated profitability of different market segments, many customers are in fact getting less service than they have in past. Increasing use by companies of self-service and technology-based service is perceived as less service because no human interaction or human personalization is provided. Technology-based services (Automated Voice Systems, Internet-Based Services, Technology Kiosks) are hard to implement, and there are many failures and poorly designed systems in place. Customer expectations are higher because of the excellent service they receive from some companies. Thus they expect the same from all and are frequently disappointed. Organizations have cut costs to the extent that they are too lean and are too understaffed to provide quality service.

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 The intensely competitive job market results in less skilled people working in frontline service jobs; talented workers soon get promoted or leave for better opportunities. Many companies give lip service to customer focus and service quality; but they fail to provide the training , compensation, and support needed to actually deliver quality service. Delivering consistent, high-quality service is not easy, yet many companies promise it.

The gaps model positions the key concepts, strategies, and decisions in services marketing in a manner that begins with the customer and builds the organizations tasks around what is needed to close the gap between customer expectations and perceptions. The central focus of the gaps model is the customer gap, the difference between customer expectations and perceptions. Firms need to close this gap- between what customers expect and receive in order to satisfy their customers and build long term relationships with them. To close this all important customer gap, the model suggests that four gaps- the provider gaps- need to be closed.

The following four provider gaps, shown below are the underlying causes behind the customer gap: Gap 1: Not knowing what customers expect. Gap 2: Not selecting the right service designs and standards. Gap 3: Not delivering to service standards. Gap 4: Not matching performance to promise

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Strong customer service helps an organization to reach upto customers expectations. The bank has two principle client segments customer and asset management. The bank follows values such as Integrity, teamwork, respect, professionalism, & Mission. The segment of bank we are considering here is- Corporate banking. The product out of which have chosen for research is Saving Accounts. This research helps us in finding out the customers view regarding the product and Services offered by the HDFC bank and awareness by promotion and also identifying the market potential of the product offered by the HDFC bank. Banking in India originated in the first decade of 18th century. The first banks were The General Bank of India, which started in 1786, and Bank of Hindustan, both of which are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the "The Bank of Bengal" in Calcutta in June 1806. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras. The presidency banks were established under charters from the British East India Company. They merged in 1925 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India. For many years the Presidency banks acted as quasi-central banks, as did their successors. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935. After India's independence in 1947, the Reserve Bank was nationalized and given broader powers. A couple of decades later, foreign banks such as Credit Lyonnais started their Calcutta operations in the 1850s. At that point of time, Calcutta was the most active trading port, mainly due to the trade of the British Empire, and due to which banking activity took roots there and prospered. 16

First of all we must note the fact that these institutions have changed very much in character since their origin, and consequently nowadays perform many functions unknown to those of former times. The first banks seem to have arisen in connection with the business of exchanging money. In ancient times and especially in the Middle Ages the varieties of coins were greater even than at the present day, and they were much less perfectly and honestly minted. Specialists were, therefore, required to determine their exact value and equivalence and to exchange coins of one mintage for those of another, and their BANK were in great demand at fairs and other places where merchants of different nations met forpurposes of trade. Inasmuch as they kept their boxes or chests of coins on benches or "banken," the name bankers came to be applied to them. On account of their technical knowledge and the fact that they were obliged constantly to keep on hand considerable quantities of the precious metals, this business in the early Middle Ages was usually carried on by goldsmiths, but later it was sometimes assumed by the governments of large commercial cities, as, for example, by Amsterdam in 1609, by Hamburg in 1619, and by Nurnberg in 1621. Of these latter the Bank of Amsterdam was the most important and may be regarded as typical of these early institutions. From the earliest times also, bankers have been the chief agents through which foreign exchanges have been conducted. As dealers in coin and bullion they had international connections and knowledge of international affairs not possessed by other merchants, and were, therefore, in a position to undertake the settlement of international accounts by means of orders drawn on bankers in other countries or other cities with whom they had regular business transactions. As keepers of other people's money they also promoted saving, and banks thus became in time the chief savings institutions of the country.

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Currently (2011), banking in India is generally fairly mature in terms of supply, product range and reach-even though reach in rural India still remains a challenge for the private sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks in comparable economies in its region. The Reserve Bank of India is an autonomous body, with minimal pressure from the government. The stated policy of the Bank on the Indian Rupee is to manage volatility but without any fixed exchange rate-and this has mostly been true. With the growth in the Indian economy expected to be strong for quite some time-especially in its services sector-the demand for banking services, especially retail banking, mortgages and investment services are expected to be strong. One may also expect M&As, takeovers, and asset sales. In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been allowed to hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any stake exceeding 5% in the private sector banks would need to be vetted by them. Currently, India has 88 scheduled commercial banks (SCBs) - 27 public sector banks (that is with the Government of India holding a stake)after merger of New Bank of India in Punjab National Bank in 1993, 29 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 31 foreign banks. They have a combined network of over 53,000 branches and 17,000 ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively

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Introduction of 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.

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CHAPTER II

SCOPE & IMPORTANCE

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SCOPE & IMPORTANCE

There are many benefits related to take this study. Some of the benefits of taking this study are as follows: By analyzing this information, the bank would be able to better design schemes & services & target right prospects needs & wants. More people will get aware about HDFC Bank that will increase profit level of HDFC Bank This study helps to identify the behavior of consumer when there are no offers & schemes from HDFC Bank.

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CHAPTER III

OBJECTIVES OF THE STUDY

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OBJECTIVES OF THE STUDY

To know about various services of HDFC bank To study whether the customers are satisfied with the services of HDFC Bank. To know about the Customer preferences to HDFC Bank.

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CHAPTER IV LITERATURE REVIEW

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The banking sector in India has made remarkable progress since the economic reforms in 1991. New private sector banks have brought the necessary competition into the industry and spearheaded the changes towards higher utilization of technology, improved customer service and innovative products. Customers are now becoming increasingly conscious of their rights and are demanding more than ever before. The recent trends show that most banks are shifting from a product-centric model to a customer-centric model as customer satisfaction has become one of the major determinants of business growth. In this context, prioritization of preferences and close monitoring of customer satisfaction have become essential for banks. Keeping these in mind, an attempt has been made in this study to analyze the factors that are essential in influencing the investment decision of the customers of the public sector banks. For this purpose, Factor Analysis, which is the most appropriate multivariate technique, has been used to identify the groups of determinants. Factor analysis identifies common dimensions of factors from the observed variables that link together the seemingly unrelated variables and provides insight into the underlying structure of the data. Secondly, this study also suggests some measures to formulate marketing strategies to lure customers towards banks.

A bank is a financial institutions whose primary activity is to act as a payment agent for customer and to borrow & lend money. Banks are important player in financial markets and offers financial services sucha s investment funds. Due to increasing competition in retail banking, understanding the customer perception about service quality is becoming indispensable. The private sector banks are posing a very stiff competition to the public sector banks through their initiatives for meeting customer expectations

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and gaining a cutting edge. This is reflected by the increasing market share and better profitability of private banks in comparison to that of public sector banks. At the same time, public sector banks have also responded to the challenges posed by the private sector banks through conscious efforts to enhance their service quality. This study (R.A.Ravi) compares public sector banks and private sector banks in terms of user perception of their retail banking services. In the age of consumerism, the customer is king. And the banking sector is latching on to this mantra of sales and marketing. Although the sector is part of the service industry, only recently have individual banks woken up to the fact that offering products and services tailored to meet the customers' specific needs can actually bring in more business. Banks today do much more than lend and borrow money. The new-age private sector banks can be said to be the forerunners in offering such customer-oriented service. Banks are even taking loans to the customers. Banks have also become a one-stop shop for selling products such as mutual funds, insurance and RBI bonds and offer service such as payment of utility bills and equity trading. Cross-selling also helps banks personalise products for their customers.

Key Words:

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Bank: A bank is a financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money. It is an institution for receiving, keeping, and lending money. Mobile Banking: Mobile banking (also known as M-Banking, mbanking, SMS Banking etc.) is a term used for performing balance checks, account transactions, payments etc. via a mobile device such as a mobile phone. Mobile banking today (2007) is most often performed via SMS or the Mobile Internet but can also use special programs called clients downloaded to the mobile device. Internet Banking: Online banking (or Internet banking) allows customers to conduct financial transactions on a secure website operated by their retail or virtual bank, credit union or building society. Core Banking System: Core Banking is a general term used to describe the services provided by a group of networked bank branches. Bank Customers may access their funds and other simple transactions from any of the menber branch offices. Atm: An automated teller machine (ATM) is a computerized telecommunications device that provides the customers of a financial institution with access to financial transactions in a public space without the need for a human clerk or bank teller. On most modern ATMs, the customer is identified by inserting a plastic ATM card with a magnetic stripe or a plastic smartcard with a chip, that contains a unique card number and some security information, such as an expiration date or CVC (CVV). Security is provided by the customer entering a personal identification number (PIN). 27

Using an ATM, customers can access their bank accounts in order to make cash withdrawals (or credit card cash advances) and check their account balances as well as purchasing mobile cell phone prepaid credit. ATMs are known by various other names including automated banking machine, money machine, bank machine, cash machine, hole-in-the-wall, cashpoint, Bancomat (in various countries in Europe and Russia), Multibanco (after a registered trade mark, in Portugal), and Any Time Money (in India).

Market profile of the organization:-

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HDFC Bank Limited 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, property, and rental receivables; 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. These segments services include trade services, cash management, money market, custodial, tax collection, and electronic banking. In addition, it provides correspondent bank services to co-operative banks, private banks, foreign banks, and regional rural banks; and wealth management products for non-resident Indians. 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 1,412 branches and 3,295 automated teller machines in 528 cities in India. The company was founded in 1994 and is based in Mumbai, India. In todays growing world everyone needs to diversify their business so as to keep in touch with the rapid development. By analyzing the growing concerns of the market, HDFC has clients varying 29

from investment banking sector, retail, web designing companies, etc. Due to this rapid development HDFC Group has many teams working for the above mentioned sectors. HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian Bank". We realised that only a single-minded focus on product quality and service excellence would help us get there. Today, we are proud to say that we are well on our way towards that goal.

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CHAPTER V RESEARCH METHODOLOGY

RESEARCH METHODOLOGY
RESEARCH Research is an organized and systematic way of finding answers to question.

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Research is careful inquiry or examination to discover new information or

relationships and to extend and to verify existing knowledge. systematized effort to gain new knowledge. METHODOLOGY "The analysis of the principles of methods, rules, and postulates employed Redman & Mory define research as a

by a discipline" The development of methods, to be applied within a discipline "A particular procedure or set of procedures."

RESEARCH PROCES

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REVIEW OF LITERATURE

Review concepts & theories Introduction to the problem Review Empirical Evidences Formulate hypothesis Design Research (including sampling plan

Suggestion

Interpretation

Finding & Analysis

Collect Data

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INTRODUCTION TO THE PROBLEM

The main task was to find out CUSTOMER PREFERNEC TOWARDS THE SERVICES OF HDFC BANKS & they are:-

Research Design
The framework of conducting research is known as the research design. 34

Research design is the plan, structure, and strategy of investigation conceived so as to obtain answer to research question and to control variation. A research design is the determination and statement of the general research approach or strategy adopted/or the particular project. It is the heart of planning. If the design adheres to the research objective, it will ensure that the client's needs will be served." According to Kerlinger"Research design in the plan, structure and strategy of investigation conceived so as to obtain answers to research questions and to control variance." According to Green and Tull "A research design is the specification of methods and procedures for acquiring the information needed. It is the over-all operational pattern or framework of the project that stipulates what information is to be collected from which source by what procedures."

TYPES OF RESEARCH DESIGN

Quantitative Research:- Quantitative research is descriptive and provides hard data on the numbers of people exhibiting certain behaviours, attitudes, etc. It provides information in breadth and allows you to sample large numbers of the population. It is, however, structured and does not yield the reasons behind behaviour or why people hold certain 35

attitudes. Techniques commonly used include postal surveys (particularly appropriate in the case of student populations where name and address information is available), telephone surveys (appropriate for surveys of employers), on-line or web-based surveys (very cost-effective for reaching audiences where e-mail penetration is high, such as students and university/college staff) and mystery shopping (in this case to test quantifiable aspects of the service). Qualitative Research:- Qualitative research allows you to explore perceptions, attitudes and motivations and to understand how they are formed. It provides depth of information which can be used in its own right or to determine what attributes will subsequently be measured in quantitative studies. Verbatim quotes are used in reports to illustrate points and this brings the subject to life for the reader. However, it relies heavily on the skills of the moderator, is inevitably subjective and samples are small. Techniques include group discussions/workshop sessions, paired interviews, individual in-depth interviews and mystery shopping (where the researcher plays the role of a potential student, etc in order to replicate the overall experience). Secondary or Desk research:- The collating and analysis of secondary data is called desk research. Secondary data is data that already exists and may be found within your own organisation or is published by another party and readily available. Exploratory Research Design: - The major emphasis in exploratory Research design is on

discovery of ideas and insights Descriptive Research Design: - The Descriptive Research Design study is typically concerned with determining the frequency with which something occurs or the relationship between two variables. 36

DATA COLLECTION Data collection is a term used to describe a process of preparing and collecting data - for example as part of a process improvement or similar project. A method of data collection in which the situation of interest is watched and the relevant facts, actions and behaviors are recorded. Primary Data source: All the people from different profession were personally visited and interviewed. They were the main source of Primary data. The method of collection of primary data was direct personal interview through a structured questionnaire. Secondary Data Source: It was collected from internal sources. The secondary data was collected on the basis of organizational file, official records, news papers, magazines, management books, preserved information in the companys database and website of the company.

Sampling Design
Sampling is the process of learning about the population on the basis of the sample. Sample is that part of the universe which we select for the purpose of investigation sample should exhibit the characteristics of the universe. All the items under considerable in any field of inquiry constitute a universe or population. Sampling Frame: - It is also known as source list from which sample is to be drawn. It

contains the name of all items of a universe It should be comprehensive, correct, and appropriate. Sample Size: - Sample size refers to the number of items to be selected from the universe

to constitute a sample. The size of sample should neither be excessivelylarge, nor too small. It should be optimum.

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Sampling Method: - It is of two types: Probability Sampling Non- Probability Sampling

Probability Sampling: - It is based on the concept of random selection of a controlled procedure that assures that each population element is given a non-zero chance of selection. Probability Sampling is of following types: 1. Simple Random 2. Systematic 3. Cluster 4. Stratified 5. Double Non-Probability Sampling: Non probability sampling is non-random and subjective. That is each member does not have a known non zero chance of being included. Types of Non-Probability Sampling. Convenience Judgment Quota

For this research work I have chosen Non Probability Random Sampling because general public is not free at all the time Sampling Method Non Probability 38

Sample Unit Sample Size Data Resources Research Instrument Tools Used Area of Research

General Public age between 18-80 years 30 Primary & secondary Questionnaire Charts Moradabad

CHAPTER VI
39

FINDINGS AND ANALYSIS

FINDINGS AND ANALYSIS

Q1:- What is the income Level of the respondents? Table 1 Frequency Rs.5,000-Rs.15,000 Rs.15,001-Rs.25,000 Rs.25,001-Rs.35,000 Above Rs.45,000 Total Graph -1 17 8 4 1 30 Percent 54.8 25.8 12.9 3.2 100

40

Interpretation: From the above table 54.8% of respondents are falling under the income range between Rs.5, 000Rs.15, 000. And 25.8% are falling under the income range between Rs.15, 001-Rs.25, 000. And 12.9% of respondents are falling under the income range between Rs.25, 001-Rs.35, 000. And 3.2% of respondents are falling under the income range between Above Rs.45, 000. Q2:- How many accounts do you have in HDFC bank? (a) 1 Table -2 Frequency One account Two account More that two account Dont wat to answer total Graph 2 15 9 3 3 30 Percentage 50 30 10 10 100 (b) 2 (c) more than 2 (d) dont want to answer

41

50 45 40 35 30 25 20 15 10 5 0 1 a/c 2 a/c more dont that2 a/c want to answer

one account two account more that two account dont want to answer

Interpretation: From that above table it is calculated that 60% of that people have 1 account in the bank , and 2 a/c were using by that 30 % of people, weather only 10 % of people were using more than 2 a/c in HDFC bank Q3:- What type of services do you prefer the most of HDFC BANK? Table -3 Frequency ATM SERVICE INTERNET BANKING MOBILE BANKING CORE BANKING SYSTEM Total 18 3 3 6 30 Percent 60 10 10 20 100

42

Graph3

Interpretation: From the above table 61.3% of respondents prefer the ATM service. And 9.7% of respondents are preferred the internet banking and mobile banking. And 16.1% of respondents prefer the core banking system. Q4. From how much time you are using the services of HDFC bank? 43

(a) 0-2 years (b) 3-5 years (c) more than 5 years (d) dont want to answer Table-4 Frequence 0-2 year 3-5 years More that 5 yaers Dont want to answer Total Graph 4
40 35 30 25 20 15 10 5 0 0-2 years 3-5years more than 5 years dont want to answer 0-2 years 3-5 years more than dont want 5 years to answer

Percentage 20 40 30 10 100

6 12 9 3 30

Interpretation: From that above table it is decided that from 0-2 years 20 % of the respondents are using services of HDFC bank and from 3-5 year 40 % of the respondents using service of the bank weather from more than 5 year 30 % of the respondent using service of HDFC bank. And 10 % of the respondent doesnt answer.

Q5. Are you aware about all services of the bank.? (a) Yes (b) no (c) cant say (d) almost all 44

Table 5 Yes No Cant say Almost all Total Graph -5 40 35 30 25 20 15 10 5 0 yes no cant say almost all yes no cant say almost all Frequency 9 12 3 6 30 Percent 30 40 10 20 100

Interpretation: From the above it is concluded that 30 % of the respondents are well known about all services of HDFC bank , weather 40 % of the respondents are still unknown about all services of HDFC bank. And 10 % of the respondent cant say anything and 20 % of the respondent sai that they almost know all services of bank Q6- What type of services you are using most which are provided by HDFC bank? a) ATM service b) Internet Banking c) Mobile Banking d) Core banking system e) Others _____________ pls specify 45

Table -6 Frequency Atm servive Internet banking Mobile banking Core banking system Total Graph-6 50 45 40 35 30 25 20 15 10 5 0 14 12 3 1 30 Percent 46.5 40 10 3.5 100

atm internet mobile core banking system

atm

internet

mobile

core banking system

Interpretation: From the above table it is decided that 46.5of the respondents use atm services , weather 40 % respondent use internet banking , only 10 and 3.5 % respondent using mobile banking and core banking system. Q7.What is the reason to choose the services of HDFC bank?

Table -7

46

Options
EFFICIENT CUSTOMER SERVICE TIME SAVING TRANSCATION COSTS TECHNOLOGY MORE ATMS

Frequency 14 8 3 1 4 30

Percent
46.666667 26.666667 10-Jan 3.3333333 13.333333 100

Total Graph -7

Interpretation: From the above table 46.2% of respondents are saying that the reason to choose HDFC is they are providing efficient customer service. And 26.8% of respondents are saying that the reason to choose HDFC is they are reducing our waiting time. And 10.7% of respondents are saying that the reason to choose HDFC is Transaction costs. And 3.3% of respondents are saying that the reason to choose HDFC is Technology. And 13.9% of respondents are saying that the reason to choose HDFC is they are provided more ATM facility.

Q8-.How many times you are using the services of HDFC bank during 1 month? (a) 0-5 Table -8 (b) 5 -10 (c) more than 10 times (d) cant say

47

Frequence 0-5times 5-10 times More than 10 times Cant say total Graph -8 15 6 3 6 30

Percentage 50 20 10 20 100

Interpretation: from the above table 50 % of the respondents are using the services of bank from 0-5 times in a month , 20 % of the respondents are using 5 10 times services of the bank and 10 % of the respondent are using more than 10 times services of the bank. And 20% of the respondent doest not clear about the use . Q9- Which services you want improvement by the side of HDFC bank? a) ATM service b) Internet Banking c) Mobile Banking d) Core banking system e) Others _____________ pls specify Table -9 48

Frequency Atm service Internet banking Mobile banking Core banking system Total Graph -9 3 18 6 3 30

Percent 10 60 20 10 100

Interpretation: from the above table 10 % of the respondents want to improve service of bank , 60 % of the respondents want to improve internet banking service , 20% want to improve service of mobile banking and 10 percent want to improve core banking system. Q10- Are you satisfy with the problem solving procedure of the HDFC bank? (a) Yes Table -10 Frequency Yes 15 49 Percent 50 (b) no (c) cant say (d) almost

No Cant say Almost all Total

6 3 6 30

20 10 20 100

Graph10

Interpretation: From the above table its verified that 50% respondents are satisfy with the problem solving procedure of the bank weather 20% of the respondents are not satisfy , 10 % of the respondent cant say about the question and 20% of the respondent are almost satisfy with the bank. Q11-Please rate the courtesy level shown by the HDFC staff.? (a) Good
TABLE 11Rating Good Very Good Frequency 5 15 Percent 16.67 50 `(b)Very good (c)Excellent (d)Poor

50

Excellent Poor Total

9 1 30

30 3.33 100

Graph-11

Interpretation From the above table its verified that 50% respondents are satisfy with the courtesy level of employees in bank whether 30% of the are saying its excellent & 16.67% are saying its good & 3.33% of the respondent are almost not satisfy with the courtey level of employees.

Q.12- Rating the Knowledge of Bank Staff in answering the queries. A)Average B)Good C)Very good D)Execellent Table-12
Rating Good Very Good Frequency 6 10 Percent 20 33.333333

51

Excellent Poor Total

13 1 30

43.333333 3.3333333 100

Graph-12

INTERPRETATION From the above table it is verified that 43% of respondents are saying that employees are excellent in solving the queries while says its very gud 20% says its gud and 3 % says the knowledge is poor.

Q13-: Rating the fastness of the personnel in responding/ attending to the customers. A)Average B)Good C)Very good D)Execellent Table-13
Rating Good Very Good Frequency 6 13 Percent 20 43.333333

52

Excellent Poor Total

9 2 30

30 6.6666667 100

Graph-13

INTERPRETATION From the above table its verified that 43% respondents are satisfy(very good) with the fastness of the personnel in responding/ attending to the customers.whether 30% of the respondents are saying its excellent and satisfy , 20 % of the respondent saying its good and 3% says its poor.

Q-14 Rating the Transaction Time taken for Cash deposit. A)Average B)Good c)Very good D)Execellent TABLE-14
Rating Good Very Good Excellent Frequency 9 11 8 Percent 30 36.666667 26.666667

53

Poor Total

2 30

6.6666667 100

GRAPH-14

INTERPRETATIONFrom the above table its verified that 36% respondents are saying that transaction time taken for cash deposit is very good whether 30% of the respondents are saying its good and 26% are saying its excellent and 3% says its poor..

Q15-Rating the easiness to open an account with the bank. A)Average B)Good c)Very good D)Execellent TABLE-15
Rating Good Very Good Excellent Frequency 11 8 7 Percent 36.666667 26.666667 23.333333

54

Poor Total

4 30

13.333333 100

GRAPH-15

INTERPRETATION From the above table its verified that 36% respondents are saying that to open an account is a good procedure here whether 26% of the respondents are saying its very good and 23% are saying its excellent and 13% says its poor..

Q16- Rating the product/ service innovation in the past two years. A)Average B)Good c)Very good D)Execellent TABLE-16
Rating Good Very Good Excellent Frequency 7 9 11 Percent 23.333333 30 36.666667

55

Poor Total

3 30

10 100

GRAPH-13

INTERPRETATION From the above table its verified that 36% respondents are saying execllent innovation i done in last 2 years whether 10% of the respondents says no or poor innovation is done in last 2 years

Q17- Rating the banks promptness in informing the deposit rates/ charges. A)Average B)Good C)Very good D)Execellent TABLE-17
Rating Good Very Good Excellent Poor Frequency 13 8 7 2 Percent 43.333333 26.666667 23.333333 6.6666667

56

Total

30

100

GRAPH-13

INTERPRETATION From the above table 43 % of the respondents says that the banks promptness in informing the deposit rates/ charges. While 26 % of the respondents rate good and 6% rate poor.

Q18- Rating the banks facility in terms of the comfort facilities it offers. A)Average B)Good C)Very good D)Execellent TABLE-18
Rating Good Very Good Excellent Poor Total Frequency 6 14 8 2 30 Percent 20 46.666667 26.666667 6.6666667 100

57

GRAPH-18

INTERPRETATION From the above table 46 % of the respondents rate that the banks facility in terms of the comfort facilities it offers is good,while 26% rate excellent and 6% rate poor. .

Q19- Rating the quality of the banks ATM services. A)Average B)Good C)Very good D)Execellent TABLE-19
Rating Good Very Good Excellent Poor Total Frequency 4 8 17 1 30 Percent 13.333333 26.666667 56.666667 3.3333333 100

GRAPH-19 58

INTERPRETATION From the above table 56 % of the respondents rate that the quality of the banks ATM services. Is excellent,while 26% rate good and 3% rate poor.

Q20- Rating the internet/ mobile banking facility offered by the bank. A)Average B)Good C)Very good D)Execellent Table-20
Rating Good Very Good Excellent Poor Total Frequency 6 9 14 1 30 Percent 20 30 46.666667 3.3333333 100

GRAPH-20 59

INTERPRETATION From the above table 46 % of the respondents rate that the internet/ mobile banking facility offered by the bank is excellent while 30% rate very good and 3% rate poor.

Q21- Reasons which influenced the customers choose a bank for the loan. A)Good Customer services B)Low interest rate D)Customer satisfaction TABLE-21
Rating Good Customer Services Low Interest rate Quick processing Customer satisfaction Promptnes & knowledge of staff Frequency 7 8 4 5 6 Percent 23.333333 26.666667 13.333333 16.666667 20

C)Quick processing

E)Promptness & knowledge of staff

60

Total

30

100

GRAPH-21

INTERPRETATION From the above table 26 % of the respondents says that low interest rate influenced the customers choose a bank for the loan.while 16% says customer satisfaction,20% says promptness & knowledge of staff.

Q22- Preferences of the respondents (ranks provided) towards the various loans from HDFC? A)Personal Loan D)Education Loan TABLE-22
Rating Personal Loan Gold Loan Vehicle loan Education Loan Vehicle loan Agriculture Loan House loan Frequency 3 4 8 7 5 Percent 10 13.333333 26.666667 23.333333 16.666667

B)Gold loan E)Agricultural loan

C)Vehicle Loan F)House Loan

2 1

6.66666 67 3.33333 33

61

Total

30

100

GRAPH-22

INTERPRETATION From the above table 26 % of the respondents says that Preferences is towards the vehicle loan while 23% says towards education loan,6% says towards agriculture loan.

62

CHAPTER VII CONCLUSION

CONCLUSION

Almost all the Banks offer similar features and facilities with their Savings accounts. There are certain reasons for existing customers of Saving Account of any Bank to shift to another Bank.

The level of service in terms of delivering whatever is promised, fast response in case of problems, is the most important benefit that the customers seek, from the Bank they 63

have a Saving Account with network reach and visibility of a Bank is a very important criterion for the customer while opening a Saving Account. Customers always look for more user- friendly products and better interest rates when compared to other banks they have account with, so, through product innovation and competitive pricing strategy the bank can foster business relationship with its customers. The gap analyzed can be minimized by better technology, customer service and also by creating awareness about the various services; thereby increasing the customer base. 54% of the respondents have Rs. 5000- 15000 as their income level per month. 27.33% of the respondents are associated with the bank from the past 10- 13 years. 48% of the respondents have rated the bank good with regard to the courtesy level of the banks personnel/ staff. 50.67% of the respondents have rated the bank good with regard to the bank staffs knowledge in answering/ solving the customers queries. 50% of the respondents have rated the bank good with regard to the transaction time taken for cash deposit. Majority of the respondents have found to have not received any privileges/ benefits for being a regular/ long term customer. Only 30% and 23.3% of the respondents use the mobile and internet banking facility of the bank respectively.

64

65

CHAPTER VIII RECOMMENDATIONS

RECOMMENDATIONS

Since many of the respondents are not aware of there key services. The bank has to take some initiatives. The bank can post a list of services that they are rendered to the customers inside the bank Premises. And they can post demo of all these services in their bank website. They can concentrate more on the respondents are falling under the age group 25yrs 35yrs. The HDFC Bank can concentrate on customer complaints handling. 66

 The HDFC Bank can concentrate on the female gender. The bank can also send a post to there customers by informing there services and how to proceed with that and all details they can mention it in the post. Since a large number of the respondents are unaware of the services provided through Internet(66%)/ mobile(56.7%) banking; initiatives, such as posting a list of services that are rendered to the customers inside the bank premises, demo of the services in the bank website; can be done to make the customers aware, and use the services provided through ATM, internet and mobile banking of the bank.

67

CHAPTER IX LIMITATIONS

LIMITATIONS

Some of the limitations of the project are listed as below: The time bound period is the major limitation in research projects. Due to the financial and time constraints a cluster analysis of the population so as to get better results was not feasible. It was difficult to break the ice with the common people initially. It was a daunting task to convince them to fill in the personal details of the questionnaire where they have to mention the number of accounts in bank. 68

 To convince the people for a proper interviewing process is also difficult. Compilation of data on competitor analysis was difficult due to non-availability of correct information.. The figures have been taken as approximations.

69

CHAPTER X BIBLIOGRAPHY

BIBLIOGRAPHY Books:

1. Kotler Philip Marketing Management; Prentice-Hall India (PHI); 11th Edition; 2007, New Delhi. 2. Kotler Philip, Armstrong Gary Principle of Marketing; Prentice-Hall India (PHI); 10th Edition; 2009, New Delhi.

70

3. Rathore B.S., Advertisement Management, Himalaya Publishing House, 5th Edition, 2008, New Delhi.

Webliography: www.hdfcbank.com www.slideshare.com www.scribd.com

71

CHAPTER XI ANNEXURES

QUESTIONNAIRE

Personal details 1. Income level: a) Rs.5, 000 Rs.15, 000 c) Rs.25, 001- Rs.35, 000 b) Rs.15, 001-Rs.25, 000 d) Rs.35, 001-Rs.45, 000

72

e) Above Rs. 45,000 2. How many accounts do you have? (a) 1 (b) 2 (c) more than 2 (d) dont want to answer

3. What type of services you prefer while opening an account in bank? a) ATM service b) Internet Banking c) Mobile Banking d) Core banking system e) Others _____________ pls specify 4. From how much time you are using the services of your bank? (a) 0-2 years (b) 3-5 years (c) more than 5 years (d) dont want to answer 5. Are you aware about all services of the bank ? (a) Yes (b) no (c) cant say (d) almost all

6. What type of services you are using which are provided by your bank? a) ATM service b) Internet Banking c) Mobile Banking d) Core banking system e) Others _____________ pls specify 7. What is the reason to select the bank? a) Efficient customer service b) efficient complaints handling c) Time saving d) transaction costs e) technology f) Others _________ pls specify 8.how many times you are using the services of bank during 1 month? (a) 0-5 (b) 5 -10 (c) more than 10 times (d)cant say

9. Which services you want improvement by the site of bank? a) ATM service b) Internet Banking c) Mobile Banking d) Core banking system e) Others _____________ pls specify 10. Are you satisfy with the problem solving procedure of the bank?

73

(a) Yes

(b) no

(c) cant say

(d) almost

11.Please rate the courtesy level shown by the HDFC staff.? (a) Good ` (b)Very good c)Excellent (d)Poor

12. Rating the Knowledge of Bank Staff in answering the queries. A)Average B)Good C)Very good D)Execellent 13.Rating the fastness of the personnel in responding/ attending to the customers. A)Average B)Good C)Very good D)Execellent 14.Rating the Transaction Time taken for Cash deposit. A)Average B)Good c)Very good D)Execellent 15.Rating the easiness to open an account with the bank. A)Average B)Good c)Very good D)Execellent 16.Rating the product/ service innovation in the past two years. A)Average B)Good c)Very good D)Execellent 17.Rating the banks promptness in informing the deposit rates/ charges. A)Average B)Good C)Very good D)Execellent 18.Rating the banks facility in terms of the comfort facilities it offers. A)Average B)Good C)Very good D)Execellent 19.Rating the quality of the banks ATM services. A)Average B)Good C)Very good D)Execellent 20. Rating the internet/ mobile banking facility offered by the bank. A)Average B)Good C)Very good D)Execellent 21.Reasons which influenced the customers choose a bank for the loan.

74

A)Good Customer services B)Low interest rate D)Customer satisfaction

C)Quick processing

E)Promptness & knowledge of staff

22.Preferences of the respondents (ranks provided) towards the various loans from HDFC? A)Personal Loan D)Education Loan B)Gold loan E)Agricultural loan C)Vehicle Loan F)House Loan

75