A PROJECT REPORT ON

ANALYSIS OF CUSTOMER SATISFACTION WITH RESPECT TO SELECTED BANKING SERVICES OFFERED BY HDFC BANK

Project Report Submitted to Guru Gobind Indraprastha University in Partial Fulfillment of the Requirements for the Award Of BACHELOR OF BUSINESS ADMINISTRATION (2011-2014) By: AJAY SETHI Under The Guidance of: Mr. Ankur Budhiraja

New Delhi Institute of Management Tughlakabad Institutional Area New Delhi-110062

1

CERTIFICATE

This is to certify that AJAY SETHI has successfully completed the research project titled ANALYSIS OF CUSTOMER SATISFACTION WITH RESPECT TO SELECTED BANKING SERVICES OFFERED BY HDFC BANK as the partial fulfillment of the requirement for the award of degree of Bachelor Of Business

Administration by Guru Gobind Singh Indraprastha University, New Delhi (2011-2014)

To best of my knowledge the report is original and has not been copied or submitted anywhere else . It is an independent work done by him.

FACULTY:

ANKUR BUDHIRAJA

PLACE: 2

NEW DELHI INSTITUTE OF MANAGEMENT

ACKNOWLEDGEMENT

The present work is an effort to throw some light On ANALYSIS OF CUSTOMER SATISFACTION WITH RESPECT TO SELECTED BANKING SERVICES OFFERED BY HDFC BANK The work would not have been possible to come to the present shape without the able guidance, supervision and help to me by number of people.

With deep sense of gratitude I acknowledge the encouragement and guidance received by Mr. ANKUR BUDHIRAJA (Faculty Guide) who not only played the role of my Philosopher and Guide at New Delhi Institute of Management, New Delhi but also mentored me at every stage of my project work. I would like to extend my heartily thanks to entire Faculty of BBA department for their constant cooperation and support to take decision during the course of my research. Indeed I shall remain ever grateful to them. I would also like to thanks the help and assistances rendered to me during the period of the project by the institutes library and computer laboratory management and all those my friends whose name could not be mentioned. And last but not the least I would like to thanks my parents for their immense support and blessings without which I cannot dream of making this project. The experience I gained during this research project is of immense importance to me academically and more so professionally.

AJAY SETHI

TABLE OF CONTENTS

CHAPTER 1

INTRODUCTION Scope of the Study Objective of the Study Limitations of the Study

CHAPTER 3

RESEARCH METHODOLOGY Population Sample Size and Method Data Collection Questionnaire Data Presentation Tools

CHAPTER 4

26-61

BANKING INDUSTRY Company Profile Product and Services

CHAPTER 5

62-64

CUSTOMER SATISFACTION EFFORTS BY HDFC BANK

CHAPTER 6

65-101

DATA ANALYSIS AND INTERPRETATION SWOT Analysis

CHAPTER 7 CONCLUSION AND RECCMMENDATION

102-104

ANNEXURE Bibliography Sample Questionnaire

105-111

LIST OF TABLES
Page No. 1.1 List of particulars No. 14 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84

Study of customer satisfaction Age groups of the respondents Marital status of respondents Occupation of the respondents No. of yrs people have been associated with the HDFC bank: Services frequently used by the respondents Level of satisfaction enjoyed by the respondents Level of satisfaction with respect to the behavior of the bank staff. Level of satisfaction towards HDFC bank in comparison to other Indian private banks: Level of convenience while opening a savings account The frequency of using a savings bank account The modes of operation of saving bank accounts by the respondents Time span of depositing cash in savings bank account The time span to encash cheques from savings bank account The level of satisfaction towards the account statements Response of the customers with respect to the lower limit which is Rs. 5000 The level of convenience with respect to the ATM facility The response of the customers with respect to the ATMS nearness The response of the customers with respect to the failure of ATMs The responses regarding the usage of other banks ATM 5

6.1 6.2 6.3 : 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18 6.19

6.20

The number of times respondents used the ATM of other banks

85

6.21

The response of the respondents towards the fake note

86

6.22 6.23 6.24 6.25 6.26 6.27 6.28 6.29 6.30 6.31 6.32 6.33

The time span taken by the HDFC Bank The types of credit cards used by the respondents The frequency of the use of credit cards The level of satisfaction with respect to facilities of credit card The level of satisfaction towards the assistance rendered by the bank The response of customers towards the matter The category of loans availed by respondents The level of satisfaction with respect to loan processing experience The time span with respect to processing of loan The customer responses with respect to the difficulty faced by them The response of respondents with respect to availability of money as and when required The level of satisfaction with respect to interest rate

87 88 89 90 91 92 93 94 95 96 97 98

LIST OF FIGURES
Page List of particulars 1.1 No. 14 66 67 68 69 70 71 72 73 74 75 76 77

GURE

Study of customer satisfaction

6.1 Age groups of the respondents 6.2 Marital status of respondents 6.3 Occupation of the respondents 6.4 No. of yrs people have been associated with the HDFC bank: 6.5 Services frequently used by the respondents 6.6 Level of satisfaction enjoyed by the respondents 6.7 Level of satisfaction with respect to the behavior of the bank staff. 6.8 Level of satisfaction towards HDFC bank in comparison to other Indian private banks: 6.9 Level of convenience while opening a savings account 6.1 The frequency of using a savings bank account 6.11 The modes of operation of saving bank accounts by the respondents 6.12 Time span of depositing cash in savings bank account 6

6.13 The time span to encash cheques from savings bank account 6.14 The level of satisfaction towards the account statements 6.15 Response of the customers with respect to the lower limit which is Rs. 5000 6.16 The level of convenience with respect to the ATM facility 6.17 The response of the customers with respect to the ATMS nearness 6.18 The response of the customers with respect to the failure of ATMs 6.19 The responses regarding the usage of other banks ATM 6.20 The number of times respondents used the ATM of other banks 6.21 The response of the respondents towards the fake note

78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98

6.22 The time span taken by the HDFC Bank 6.23 The types of credit cards used by the respondents 6.24 The frequency of the use of credit cards 6.25 The level of satisfaction with respect to facilities of credit card 6.26 The level of satisfaction towards the assistance rendered by the bank 6.27 The response of customers towards the matter 6.28 The category of loans availed by respondents 6.29 The level of satisfaction with respect to loan processing experience 6.30 The time span with respect to processing of loan 6.31 The customer responses with respect to the difficulty faced by them 6.32 The response of respondents with respect to availability of money as and when required 6.33 The level of satisfaction with respect to interest rate

Chapter-1

INTRODUCTION

INTRODUCTION Customer satisfaction

Customer satisfaction is a post purchase experience that a customer gets after consumption of products and services and becomes deciding factor for customer to make rational decision of repurchase and to recommend it to others. But in a purely service industry service is provided, consumed and analyzed at the point of consumption of service. This study basically focuses on measurement of customer satisfaction related to Service offered and rendered at HDFC BANK. This study gives a birds eye view of the hard and soft services provided by HDFC BANK to their clients. Recommending the services, rating the experience with HDFC BANK, service charges and suggestions were some of the aspects explored. Rating the products, handling of compliant calls, response time, repeat calls

encounter and overall level of satisfaction were some of the issues were also discovered.

Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and service to service. The state of satisfaction depends on a number of both psychological and physical variables. The banking industry like many other financial service industries is facing a rapidly changing market, new technologies, economic uncertainties, fierce competition and more demanding customers and the changing climate has presented an unprecedented set of challenges . Banking is a customer oriented services industry, therefore, the customer is the focus and customer service is the differentiating factors.

MEASURING CUSTOMER SATISFACTION IN THE BANKING INDUSTRY

Introduction: Banking operations are becoming increasingly customer dictated. The demand for banking super malls' offering one-stop integrated financial services is well on the rise. The ability of banks to offer clients access to several markets for different classes of financial instruments has become a valuable competitive edge. Convergence in the industry to cater to the changing demographic expectations is now more than evident. Banc assurance and other forms of cross selling and strategic alliances will soon alter the business dynamics of banks and fuel the process of consolidation for increased scope of business and revenue. The thrust on farm sector, health sector and services offers several investment linkages. In short, the domestic economy is an increasing pie which offers extensive economies of scale that only large banks will be in a position to tap. With the phenomenal increase in the country's population and the increased demand for banking services; speed, service quality and customer satisfaction are going to be key differentiators for each bank's future success. Thus it is imperative for banks to get useful feedback on their actual response time and customer service quality aspects of retail banking, which in turn will help them take positive steps to maintain a competitive edge. The working of the customer's mind is a mystery which is difficult to solve and understanding the nuances of what customer satisfaction is, a challenging task. This exercise in the context of the banking industry will give us an insight into the parameters of customer satisfaction and their measurement. This vital information will help us to build satisfaction amongst the customers and customer loyalty in the long run which is an integral part of any business. The customer's requirements must be translated and quantified into measurable targets. This provides an easy way to monitor improvements, and deciding upon the attributes that need to be concentrated on 9

in order to improve customer satisfaction. We can recognize where we need to make changes to create improvements and determine if these changes, after implemented, have led to increased customer satisfaction. "If you cannot measure it, you cannot improve it." - Lord William Thomson Kelvin (1824-1907).

The Need to Measure Customer Satisfaction:

Satisfied customers are central to optimal performance and financial returns. In many places in the world, business organizations have been elevating the role of the customer to that of a key stakeholder over the past twenty years. Customers are viewed as a group whose satisfaction with the enterprise must be incorporated in strategic planning efforts. Forward-looking companies are finding value in directly measuring and tracking customer satisfaction (CS) as an important strategic success indicator. Evidence is mounting that placing a high priority on CS is critical to improved organizational performance in a global marketplace. With better understanding of customers' perceptions, companies can determine the actions required to meet the customers' needs. They can identify their own strengths and weaknesses, where they stand in comparison to their competitors, chart out path future progress and improvement. Customer satisfaction measurement helps to promote an increased focus on customer outcomes and stimulate improvements in the work practices and processes used within the company. When buyers are powerful, the health and strength of the company's relationship with its customers its most critical economic asset is its best predictor of the future. Assets on the balance sheet basically assets of production are good predictors only when buyers are weak. So it is no wonder that the relationship between those assets and future income is becoming more and more tenuous. As buyers become empowered, sellers have no choice but to adapt. Focusing on competition has its place, but with buyer power on the rise, it is more important to pay attention to the customer. Customer satisfaction is quite a complex issue and there is a lot of debate and confusion about what exactly is required and how to go about it. This article is an attempt to review the necessary requirements, and discuss the steps that need to be taken in order to measure and track customer satisfaction.

Service Quality and Customer Satisfaction:

There is a great deal of discussion and disagreement in the literature about the distinction between service quality and satisfaction. The service quality school view satisfaction as an antecedent of service quality satisfaction with a number of individual transactions "decay" into an overall attitude towards service quality. The satisfaction school holds the opposite view that assessments of service quality lead to an overall attitude towards the service that they call satisfaction. There is obviously a strong link between customer satisfaction and customer retention. Customer's perception of Service and Quality of product will determine the success of the product or service in the market. 10

If experience of the service greatly exceeds the expectations clients had of the service then satisfaction will be high, and vice versa. In the service quality literature, perceptions of service delivery are measured separately from customer expectations, and the gap between the two provides a measure of service quality.

Expectations and Customer Satisfaction:

Expectations have a central role in influencing satisfaction with services, and these in turn are determined by a very wide range of factors lower expectations will result in higher satisfaction ratings for any given level of service quality. This would seem sensible; for example, poor previous experience with the service or other similar services is likely to result in it being easier to pleasantly surprise customers. However, there are clearly circumstances where negative preconceptions of a service provider will lead to lower expectations, but will also make it harder to achieve high satisfaction ratings and where positive preconceptions and high expectations make positive ratings more likely. The expectations theory in much of the literature therefore seems to be an oversimplification.

Study of customer satisfaction

Figure 1.1

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Figure 1.1 shows various parameters through which a study of customer satisfaction can be gauged. These parameters are important for a bank to arrive at the level of customer satisfaction. The parameters are briefly explained as under:

Customer grievances: it is necessary to give utmost attention to customer grievances so that redressal measures can be taken without any loss of time. Customer property: it is the priority of the organization to take care of the property and assets of the customers. Time supply : it is the responsibility of the organization to make its products and services available to its customers at the time of their necessity and need. 12

Special requirement of customer: the organization must act as per the requirement and convenience of the customers. Customer feedback: for any organization customer feedback is very essential as it will provide a base for further improvement of products and services of the organization. Customer focus: nowadays organizations have become customer oriented and they focus on customers needs and satisfaction as their prime objective.

SCOPE OF THE STUDY

This study uncovers the impact, utility and effectiveness of customers satisfaction on the success of banking industry. A special emphasis is laid down on HDFC bank. The project begins with detailed information about customers satisfaction and the impact of measuring customer satisfaction in banking industry. Further, it covers topics as data as data collection tools used and research methodology used for the project. Then it gives a complete analysis of the data collected and it is then used to reach to a conclusion.

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The future usefulness of the project lies in the fact that the company itself can use the recommendations generated for the betterment of its advertising and promotional strategy.

For the purpose of study, the survey consists of the analysis of customer satisfaction with respect to the selected services offered by HDFC bank. The study aims at evaluating the customer satisfaction regarding the banking services rendered by HDFC bank.

The current study taken into account to meet the following objectives:
To know and analyze the level of satisfaction of customers with regard to 4 selected banking services of HDFC i.e., savings bank account, ATM- cum debit card, credit cards and loans. To understand the nature of problems faced by customers of HDFC in context to the banking services offered by the bank and the redressal system of the bank in this regard. To understand the nature of customer satisfaction efforts implemented by HDFC bank for its customers. To know the areas where HDFC has not been able to come up to the level the other banks have achieved.

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Limitations of the study

The research suffers from the following limitations:

Geographical scope of the study was limited to a small area, which may not represent the whole sector of India. Size of the sample is 50, which is, of course, small in comparison to entire population. Due to limitation of time only few people were selected for the study. So the sample of consumer was not enough to generalize the findings of the study. There can be many interpretations and explanation to the data collected. This is empirical study and the research provides the explanation as understood by the researcher only. A wide range of products offered and services rendered have been mentioned but services rendered by the same banks in the international market have not been included. The source of data for the study was primary data with the help of self-administered questionnaire. Hence, the chances of unbiased information are less. People were hesitant to disclose the true facts. The chance of biased response can not be eliminated though all necessary steps were taken to avoid the same.

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CHAPTER 2

REVIEW OF LITERATURE

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Review of Literature
A lot of research papers, articles and journals have been referred to get a better direction for the current study. Asher Mike, Measuring Customer Satisfaction (1989), The TQM Magazine, Vol. 1, Issue 2, studied that to maintain the competitive edge, organizations must move quickly to identify and then meet customer satisfaction. Examines methods of identifying customer satisfaction, measuring and using the results to improve the quality of products and services. Sees customer satisfaction as the end product. Advises on how to identify and implement a quality improvement programme. Contends that complete customer satisfaction is only possible when there is full information about customer requirements in the hands of all and everyone who has influence on how they are met. Concludes that, by getting it right first time, the whole customer/supplier chain focuses on meeting the needs of the external customer, and providing customer satisfaction.

Bargal Hitendra, Role of Service Marketing in Banking Sector (2008), Journal of Services Marketing, Vol. 6, studied that the banks are the trusted places of customers, and have come across many changes in their functioning. There is a high degree of competition among the banks. In this regard, the service quality plays an important role. The public sector banks should also bring changes in their functioning. The role of technology has become as crucial as never before. The banks will have to adopt a full-fledged marketing strategy. Customer satisfaction is crucial for the future of any banking organization.

Edward Manoj, George Babu P, Cognitive Dissonance and Purchase Involvement in the Consumer Behavior context (2007), Journal of Marketing Management, Vol. 8, studied that the degree of personal involvement in a purchase decision affects the information needed to reduce cognitive dissonance associated with that purchase. It has been argued that, highly involved individuals, because of their high involvement in purchase decisions, are rigid their preconceived cognitions that led to the purchase. Consequently, they tend to downplay the new cognition and actively look out for purchase supportive information, rather than changing the old cognition that led to the purchase decision. Also, it is ;proposed that, to overcome the cognitive dissonance 17

associated with a high involvement purchase, more supportive information is needed to overcome the cognitive dissonance associated with a low involvement purchase.,

Faulhaber Gerald R, Banking Markets: Productivity, Risk and Customer Satisfaction (1995), Emerald New Publishing House, vol.8, studied that a structural model is developed which incorporates bank decisions on productivity, risk taking and customer satisfaction into an equilibrium model of banking markets. This structural model is estimated directly for 219 large U.S. banks, 1984-1992. The results are: (i) banks differ widely in their ability to manage risk; (ii) there are substantial inefficiencies due to demand/capacity mismatches; (iii) greater customer satisfaction correlates with greater profitability, principally due to higher levels of demand; (iv) very large bank-specific effects that previous research discovered appears to have been largely captured in the structural model. Hazra Sandip Ghosh, Srivastava Kailash B L, Impact of Service Quality on Customer Loyalty, Commitment and Trust in the Indian Banking Sector(2007), Journal of Marketing Management, Vol.8, studied that in the present Indian banking scenario, service quality is an indispensable competitive strategy to retain customer base. Banks are trying to win customer satisfaction and loyalty by providing better quality services. This study examines the relationship of service quality with customer loyalty, commitment and trust from the customers perspective in the Indian banking sector. Mengi Pooja, Satisfaction with Service Quality: An Empirical Study of Public and Private Sector Banks (2009), Journal of Management Research, Vol. 8, studied that customer service is an integral part of any facet of banking and it defines the future of any banking organization. In India, this realm has undergone vast changes induced by regulatory and competitive forces and the banking industry has undergone revolutionary changes since 1991. For a service sector like banking industry, the whole range of activity and generation of income swivels around the customer. It is necessary to identify the key success factors in the banking industry, in terms of customer satisfaction keeping in view the increasing market size and intense competition. This study compares customers perceptions of service quality of public and private banks of Jammu. The service quality of both the banks has been measured using SERVQUAL (service quality) scale. SERVQUAL scale was used to determine different dimensions of service quality and chi-square analysis was used to understand the impact of SERVPERF (service performance) dimensions (tangibility, reliability, responsiveness, assurance and empathy) on customer satisfaction. It was found that customers of public sector banks are more satisfied with the service quality, than those of private sector banks.

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Mylonakis John, Customer Relationship Management Functions: A Survey of Greek Bank Customer Satisfaction Perceptions (2009), Journal of Bank Management, Vol. 8, proposed that in a competitive and globalized banking era, customers constitute one of the most important and valuable assets of a bank. Banks technological developments are interpreted as the intensive use of information technology and facilitating massive collection of information and their direct and integral processing. The aim of this paper is to present Customer Relationship Management (CRM) functions, as applied in the banking sector, examined from a bank marketing point of view. The study was carried out in 2007 on a convenience sample of 300 respondents through the distribution of structured questionnaires to bank customers within the area of Athens, Greece. The main finding of the study reveals that a majority of customers are satisfied with their bank. Most bank customers believe that the use of new technologies helps their communication with banks. They trust the bank employees for obtaining information on the existing banking products and services, while for new programs; they prefer to choose alternative channels, such as the Internet, phone services, brochures and press releases. The Greek banking market has adopted CRM solutions in recent years, as banks have realized the need to maintain their customer base and to better use their resources in order to promote their products and services. In general, there is a positive attitude towards CRM

Tripe David W L, The Relative Efficiency of Banks, Taking into Account a Customer Satisfaction Rating

(2007), Emerald New Publishing House, Vol.4, show customer satisfaction scores generated for a New Zealand wid

survey of consumers to augment analysis of bank efficiency, and to achieve greater consistency with shareholder valu

analysis. It is found that the customer satisfaction score needs to be adjusted for the number of locations (branches

through which customers are served. Once this is done, the extent of divergence in efficiency is significantly reduced

consistent with propositions that a large divergence in efficiency scores should not be sustainable in a competitiv market.

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CHAPTER 3

RESEARCH METHODOLOGY

20

RESEARCH METHODOLOGY
Population: For the current study customers availing different services of HDFC bank have been covered. A total of 70 respondents were approached. Out of these 70 it was found that 50 respondents were availing all the 4 services of the HDFC bank, for which this analysis is being made. Thus a sample of 50 respondents was taken finally for the study. Sample size and method: It is not feasible to cover all the customers availing HDFC bank services. So for the purpose of our study 50 customers residing in south Delhi area using 4 banking services i.e. savings bank account, ATM- cum debit card, credit cards and loans of HDFC bank were selected using convenience sampling. Data collection: For the study, both primary and secondary data were collected. For primary data, a questionnaire was developed and administered to the respondents who are customers of various branches of HDFC bank in south Delhi. For secondary data, existing literature in form of magazines, papers, company literature, book, web sources were consulted. Questionnaire: To collect first hand/ primary data a structured, closed-ended, multiple choice questionnaire was prepared and was administered to the sample of respondents selected for the study. Questions related general behavior with respect to banking services, customer satisfaction level related to HDFCs banking services etc. were included. Data presentation tools: The data has been presented by way of s, pie charts and graphs. These have been specifically used to present the data collected from respondents through questionnaire.

CHAPTER- 4
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BANKING INDUSTRY AND COMPANY PROFILE

An overview of Banking Industry

The banking industry in India has undergone sea change since post independence. More recently, liberalization, the opening up of the economy in the 90s and the government's decision to privatize banks by reduction in state ownership culminated in the banking reforms based on the recommendations of Narasimha Committee. The prime mover for banks today is profit, with clear indications from the government to 'perform or perish'. Banks have also started realizing that business depends on client service and the satisfaction of the customer and this is compelling them to improve customer service and build up relationship with customers.

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With the current change in the functional orientation of banks, the purpose of banking is redefined. The main driver of this change is changing customer needs and expectations. Customers in urban India no longer want to wait in long queues and spend hours in banking transactions. This change in customer attitude has gone hand in hand with the development of ATMs, phone and net banking along with availability of service right at the customer's doorstep. With the emergence of universal banking, banks aim to provide all banking product and service offering under one roof and their endeavor is to be customer centric. With the emergence of economic reforms in world in general and in India in particular, private banks have come up in a big way with prime emphasis on technical and customer focused issues.

For centuries banks have played an important role in financial system of the country. The vital role continues even today although the forms of banking have changed today with changing need of the economy and individuals. With expansion of trade and commerce, the concept of banking gained importance. The banking transcended from individuals to groups and later to companies. During the Moghul period the indigenous bankers played a very important role in lending money and financing foreign trade in India. During British rule the agency houses carried on the banking business. The Banking system in India has three tiers. There are scheduled commercial banks; the regional rural banks; and the cooperative banks. The scheduled commercial banks constitute those banks which are included in the second schedule of RBI Act 1934. In the organized segment, banking system occupies an important place in nations economy. It plays a pivotal role in the economic development of a country and forms the core of the money market in an advanced country. The commercial banks in India comprise of both Public sector as well as private sector banks. There are total 28 Public sector and 27 private sector banks are functioning in the country presently. Banks have to deal with many customers everyday and render various types of services to its customer. It's a well known fact that no business can exist without customers. PUBLIC SECTOR BANKS: Among the Public Sector Banks in India, United Bank of India is one of the 14 major banks, which were nationalized on July 19, 1969. Its predecessor, in the Public Sector Banks, the United Bank of India Ltd., was formed in 1950 with the amalgamation of four banks viz. Camilla Banking Corporation Ltd. (1914), Bengal Central Bank Ltd. (1918), Camilla Union Bank Ltd. (1922) and Hooghly Bank Ltd. (1932). Oriental Bank of Commerce (OBC), Government of India Undertaking offers Domestic, NRI and Commercial banking services. OBC is implementing a GRAMEEN PROJECT in Dehradun District (UP) and Hanumangarh District (Rajasthan) disbursing small loans. This Public Sector Bank India has implemented 14 point action plan for strengthening of credit delivery to women and has designated 5 branches as specialized branches for women entrepreneurs. PRIVATE SECTOR BANKS: 23

Private banking in India was practiced since the beginning of banking system in India. The first private bank in India to be set up in Private Sector Banks in India was IndusInd Bank. It is one of the fastest growing Private Sector Banks in India. IDBI ranks the tenth largest development bank in the world as Private Banks in India and has promoted world class institutions in India. The first Private Bank in India to receive an in principle approval from the Reserve Bank of India was Housing Development Finance Corporation Limited, to set up a bank in the private sector banks in India as part of the RBI's liberalization of the Indian Banking Industry. It was incorporated in August 1994 as HDFC Bank Limited with registered office in Mumbai and commenced operations as Scheduled Commercial Bank in January 1995. ING Vysya, yet another Private Bank of India was incorporated in the year 1930. Bangalore has a pride of place for having the first branch inception in the year 1934. With successive years of patronage and constantly setting new standards in banking, ING Vysya Bank has many credits to its account. MAJOR PRIVATE BANKING PLAYERS Banking industry has grown a lot over these years in India. From a few banks existing pre independent era like: bank of Bengal, bank of Bombay, bank of Madras, Imperial bank of India, Allahabad bank, Alliance bank of simla, etc., today there are 96 numbers of scheduled commercial banks in India, out of which 31 number of private banks are existing today. THE MAJOR PLAYERS are: Axis Bank Bank of Rajasthan Catholic Syrian Bank City Union Bank Development Credit Bank Dhanalakshmi Bank Federal Bank HDFC Bank ICICI Bank IndusInd Bank ING Vysya Bank Jammu & Kashmir Bank Karnataka Bank Karur Vysya Bank Kotak Mahindra Bank Laxmi Vilas Bank Nainital Bank Ltd 24

 Ratnagar Bank SBI Commercial and International Bank South Indian Bank Ltd Tamil Nadu Mercantile Bank Yes Bank

COMPANY PROFILE Introduction to HDFC Bank

Housing Development Finance Corporation Limited, more popularly known as HDFC Bank Ltd, was established in the year 1994, as a part of the liberalization of the Indian Banking Industry by Reserve Bank of India (RBI). It was one of the first banks to receive an 'in principle' approval from RBI, for setting up a bank in the private sector. The bank was incorporated with the name 'HDFC Bank Limited', with its registered office in Mumbai. The following year, it started its operations as a Scheduled Commercial Bank. Today, the bank boasts of as many as 1,725 branches and over 4000 ATMs in 771 Indian towns and cities The Bank was promoted by the Housing Development Finance Corporation Limited, a premier housing finance company (set up in 1977) of India. Net Profit for the quater ended March 31, 2009 was up Rs.630.9 corers, up 33.9%. Headquartered in Mumbai,

Capital Structure
.As on 31st December, 2009 the authorized share capital of the Bank is Rs. 550 crore. The paid-up capital as on said date is Rs. 455, 23, 65,640/- (45, 52, 36,564 equity shares of Rs. 10/- each). The HDFC Group holds 23.87 % of the Bank's equity and about 16.94 % of the equity is held by the ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue). 27.46 % of the equity is held by Foreign Institutional Investors (FIIs) and the Bank has about 4, 58,683 shareholders. The shares are listed on the Bombay Stock Exchange Limited and The National Stock Exchange of India Limited. The Bank's American Depository Shares (ADS) are listed on the New York Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's Global Depository Receipts (GDRs) are listed on Luxembourg Stock Exchange under ISIN No US40415F2002 25

History of the company

HDFC Bank India, announced the arrival of the new generation, technology driven commercial banks in India. HDFC Bank in India was set up in August 1994 with the approval of RBI. HDFC Bank was inaugurated in Mumbai February 17, 1995. No event was happened in the history of bank as well as Indian banking sector in Feb. 2000, the Times Bank was amalgamated with HDFC bank. This was an important milestone, being the first merger of two private sector banks. On January 7, 2002, MUL announced the launch of Maruti Finance, a consortium of eight financiers. Memberpartners were ABN Amro Bank, HDFC Bank, ICICI Limited, Kotak Mahindra, Standard Chartered Bank and Sundaram Finance. The biggest recent reshuffle of the index took place on November 10, 2003, when Castrol, Colgate-Palmolive, GlaxoSmithKline Pharma, HCL Technologies and Nestle were replaced by Bharti Tele-Ventures, HDFC Bank, ONGC, Tata Power and Wipro On April 8, 2005, the group, whose members include the top five credit card issuers ICICI Bank, Citibank, State Bank of India, HDFC Bank and Standard Chartered Bank presented its report. The report notes undesirable/ objectionable. ICICI Bank, HDFC Bank, UTI Bank and State Bank of India sold shares this year to meet accelerating credit demand in an economy. This was the biggest domestic merger in the history of India Inc that of HDFC Bank with Centurion Bank of Punjab. Boards of both banks met to give their in-principle approval.

PROMOTER
HDFC is India's premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1977, the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader in mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. With its experience in the financial markets, a strong market reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment.

BUSINESS FOCUS
HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services for target retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent with the bank's risk appetite. The bank is committed to maintain the highest level of ethical standards, professional integrity, corporate 26

governance and regulatory compliance. HDFC Bank's business philosophy is based on four core values Operational Excellence, Customer Focus, Product Leadership and People.

TIMES BANK AMALGAMATION

In a milestone transaction in the Indian banking industry, Times Bank Limited (another new private sector bank promoted by Bennett, Coleman & Co. /Times Group) was merged with HDFC Bank Ltd., effective February 26, 2000. As per the scheme of amalgamation approved by the shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank. The acquisition added significant value to HDFC Bank in terms of increased branch network, expanded geographic reach, enhanced customer base, skilled manpower and the opportunity to cross-sell and leverage alternative delivery channels.

TECHNOLOGY
HDFC Bank operates in a highly automated environment in terms of information technology and communication systems. All the bank's branches have online connectivity, which enables the bank to offer speedy funds transfer facilities to its customers. Multi-branch access is also provided to retail customers through the branch network and Automated Teller Machines (ATMs).

The Bank has made substantial efforts and investments in acquiring the best technology available internationally, to build the infrastructure for a world class bank. In terms of software, the Corporate Banking business is supported by Flex cube, while the Retail Banking business by Fin ware, both from I-flex Solutions Ltd. The systems are open, scaleableandweb-enabled.

The Bank has prioritized its engagement in technology and the internet as one of its key goals and has already made significant progress in web-enabling its core businesses. In each of its businesses, the Bank has succeeded in leveraging its market position, expertise and technology to create a competitive advantage and build market share.

DISTRIBUTION NETWORK
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of 1,725 branches spread in 771 cities across India. All branches are linked on an online real-time basis. Customers in over 500 locations are also serviced through Telephone Banking. The Bank's expansion plans take into account the need to have a presence in all major industrial and commercial centres where its corporate customers are located as well as the need to build a strong retail customer base for both deposits and loan products. Being a clearing/settlement bank to various leading stock exchanges, the Bank has branches in the centres where the 27

NSE/BSE

has

strong

and

active

member

base.

The Bank also has 4,000 networked ATMs across these cities. Moreover, HDFC Bank's ATM network can be accessed by all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.

BUSINESSES
HDFC Bank offers a wide range of commercial and transactional banking services and treasury products to wholesale and retail customers. The bank has three key business segments: Wholesale Banking Services The Bank's target market ranges from large, blue-chip manufacturing companies in the Indian corporate to small & mid-sized corporate and agri-based businesses. For these customers, the Bank provides a wide range of commercial and transactional banking services, including working capital finance, trade services, transactional services, cash management, etc. The bank is also a leading provider of structured solutions, which combine cash management services with vendor and distributor finance for facilitating superior supply chain management for its corporate customers. Based on its superior product delivery / service levels and strong customer orientation, the Bank has made significant inroads into the banking consortia of a number of leading Indian corporates including multinationals, companies from the domestic business houses and prime public sector companies. It is recognized as a leading provider of cash management and transactional banking solutions to corporate customers, mutual funds, stock exchange members and banks. Retail Banking Services The objective of the Retail Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one-stop window for all his/her banking requirements. The products are backed by world-class service and delivered to the customers through the growing branch network, as well as through alternative delivery channels like ATMs, Phone Banking, Net Banking and Mobile Banking. The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and the Investment Advisory Services programs have been designed keeping in mind needs of customers who seek distinct financial solutions, information and advice on various investment avenues. The Bank also has a wide array of retail loan products including Auto Loans, Loans against marke securities, Personal Loans and Loans for Two-wheelers. It is also a leading provider of Depository Participant (DP) services for retail customers, providing customers the facility to hold their investments in electronic form.

HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (VISA Electron) and issues the MasterCard Maestro debit card as well. The Bank launched its credit card business in late 2001. By March 2009, the bank had a total card base (debit and credit cards) of over 13 million. The Bank is also one of the leading players in the merchant acquiring business with over 70,000 Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant establishments. The Bank is well positioned as a leader 28

in various net based B2C opportunities including a wide range of internet banking services for Fixed Deposits, Loans, Bill Payments, etc.

Treasury Within this business, the bank has three main product areas - Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the liberalization of the financial markets in India, corporates need more sophisticated risk management information, advice and product structures. These and fine pricing on various treasury products are provided through the bank's Treasury team. To comply with statutory reserve requirements, the bank is required to hold 25% of its deposits in government securities. The Treasury business is responsible for managing the returns and market risk on this investment portfolio.

AWARDS and ACHIEVEMENTS- BANKING SERVICES

HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian Bank". We realized 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. The Asset magazine named HDFC Bank "Best Cash Management Bank" and "Best Trade Finance Bank" in India, in 2006. HDFC Bank named the "Most Customer Responsive Company - Banking and Financial Services in the Economic Times - Avaya Global Connect Customer Responsiveness Awards 2005". HDFC Bank has been named Best Domestic Bank in India in The Asset Triple A Country Awards 2005. In 2004, HDFC Bank was selected by Business World as "One of India's Most Respected Companies" as part of The Business World Most Respected Company Awards 2004. In 2004, HDFC Bank won the award for "Operational Excellence in Retail Financial Services" - India as part of the Asian Banker Awards 2003. It also bagged the award for Most Tech-savvy Bank at Businessworld Best Bank Awards 2009. It was declared the Most Technology- friendly Bank at the Business Best Bank Awards. These annual awards are given to top performing Banks in the category of Best Banks, Fastest Growing Bank, Most Tech- savvy Bank, Best Banker and Lifetime Achievement, among others. HDFC Bank was also rated 2nd in the Best Bank (Large) and 3rd in the Fastest Growing (Large) Bank categories At the retail, personal and individual levels, HDFC Bank stands as the leading bank when it comes to customer use of electronic payment systems and Net banking, says the magezine in its December 28 issue dedicated to Indias Best Banks 2009. Even as a percentage of revenues, HDFC B anks investment in hardware and software is not just close to the best in India, but also in Asia. 29

CREDIT RATING
HDFC Bank has its deposit programmes rated by two rating agencies - Credit Analysis & Research Limited. (CARE) and Fitch Ratings India Private Limited. The bank's Fixed Deposit programme has been rated 'CARE AAA (FD)' [Triple A] by CARE, which represents instruments considered to be "of the best quality, carrying negligible Investment risk". CARE has also rated the bank's Certificate of Deposit (CD) programme "PR 1+" which represents "superior capacity for repayment of short term promissory obligations". Fitch Ratings India Pvt. Ltd. (100% subsidiary of Fitch Inc.) has assigned the "tAAA (ind)" rating to the bank's deposit programme, with the outlook on the rating as "s". This rating indicates "highest credit quality" where "protection factors are very high".

.CORPORATE GOVERNANCE RATING

The bank was among the first four companies, which subjected itself to a Corporate Governance and Value Creation (GVC) rating by the rating agency, The Credit Rating Information Services of India Limited (CRISIL). The rating provides an independent assessment of an entity's current performance and an expectation on its "balanced value creation and corporate governance practices" in future. The bank has been assigned a 'CRISIL GVC Level 1' rating, which indicates that the bank's capability with respect to wealth creation for all its stakeholders while adopting sound corporate governance practices is the highest. These awards are mere milestones in the continuing, never-ending journey of providing excellent services to the customers. With the feedback and support of customers, the bank will be able to maintain and improve their services.

FINANCIAL RESULTS (INDIAN GAAP) FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2009
The Board of Directors of HDFC Bank Limited approved the Banks (Indian GAAP) accounts for the quarter and nine months ended December 31, 2009 at their meeting held in Mumbai on Friday, January 15, 2010. The accounts have been subjected to limited review by the Banks statutory auditors.

FINANCIAL RESULTS:
Profit & Loss Account: Quarter ended December 31, 2009 For the quarter ended December 31, 2009, the bank posted net revenues of Rs.3, 076.9 crores as against Rs.2, 918.6 crores for the corresponding quarter of the previous year. Net interest income (interest earned less interest expended) for the quarter ended December 31, 2009 increased by 12.4% to Rs.2, 223.9 crores, driven by asset growth and a core net interest margin (NIM) of over 4.3% for the quarter ended December 31, 2009, as against a 30

NIM of 4.2% for the corresponding quarter ended December 31, 2008 and for the preceding quarter ended September 30, 2009. Other income for the quarter ended December 31, 2009 was Rs.853.0 crores, accounting for 27.7% of net revenues. Fees and commission at Rs.723.7 crores was the main contributor to other income and increased by 12.4% over the corresponding quarter of the previous year and by 4.5% over the preceding quarter ended September 30, 2009. Foreign exchange/derivative revenues for the quarter ended December 31, 2009 were Rs.154.3 crores as against Rs.62.8 crores for the corresponding quarter ended December 31, 2008 and against Rs. 151.0 crores for the quarter ended September 30, 2009. With an increase in bond yields, there was a loss of Rs.26.5 crores on revaluation/sale of investments for the quarter ended December 31, 2009, as against a profit of Rs.232.1 crores for the quarter ended December 31, 2008 and a profit of Rs.162.9 crores for the quarter ended September 30, 2009. Operating expenses for the quarter ended December 31, 2009 at Rs. 1,453.2 crores, were 47.2% of net revenues as against 50.0% in the corresponding quarter of the previous

PRODUCT AND SERVICES

I. PERSONAL BANKING
A. SAVINGS ACCOUNT

1) Regular savings a/c: An easy-to-operate savings account that allows customers to issue cheques, draw Demand Drafts and withdraw cash. Check up on their balances from the comfort of their home or office through Net Banking, Phone Banking and Mobile Banking. 2) No frills savings a/c: In an effort to make banking simpler and more accessible for its customers, they have introduced the 'No Frills' Savings Account, which offers its customers the basic banking facilities. They can even avail of services like Net Banking, Mobile banking free of cost. 3) Retail trust a/c: The Retail Trust Account is beneficial for Trusts and Societies as it earns them a compared to a conventional Current Account that offers no interest. 4) Salary a/c: a) Payroll salary a/c: Nil Interest payout on account balance Free Payroll Debit Card - (max cash withdrawal at ATMs- Rs 15,000/- and Rs 25,000 at shopping avenues) b) Classic salary a/c: 31 higher interest as

Zero Balance Account Free personalized cheque books.

c) Regular salary a/c: No minimum balance required. Free International Debit card with ATM cash withdrawal limit of up to Rs. 15,000 and Rs. 25,000 (non-cash) at shopping avenues. 5) Kids advantage a/c: Automatically increases the balance in its customers Kids Advantage Account by transferring a fixed sum from their Savings Account every month. Amounts in excess of Rs. 5,000/- over and above a balance of Rs. 10,000/- gets converted into Fixed Deposits for a specified period in theirr child's name. Free International Debit Card for their child (above 7 years of age) with a maximum drawing capability of Rs. 2,500/- per day. Free Education Insurance cover of up to Rs. 1,00,000/- for your child with every Kids Advantage Account 6) Pension savings a/c: The Pension saving account is a Zero Balance Account. Timely credit of receivables Free International Debit Card. Enjoy facilities such as Net Banking, Phone Banking, Bill Pay, and ATM facility, inter-city and interbranch banking. Pension Accounts are transferable from one branch/bank to another.

B. CURRENT ACCOUNT:

1) Plus Current a/c: HDFC Bank plus Current Account gives its customers the power of inter-city banking with a single account and access to more than 220 cities. 2) Trade Current a/c: In today's changing business requirements, people need to transfer funds across cities and time is of the essence. HDFC Bank Trade Current Account gives its customers the power of inter-city banking with a single account. From special cheques that get treated at par with local ones in any city where they have a branch, to free 32

collection of outstation cheques (payable at branch locations), to free inter-city funds transfers of up to 25 lakhs, their priority services have become the benchmark for banking efficiency.

3) Premium Current a/c: A Current Account with the benefits of accessing its customers account from a large network of branches, and through direct access channels - the phone, mobile, Internet and through the ATM. 4) Regular Current a/c A Current account is ideal for carrying out day-to-day business transactions. With the HDFC Bank Regular Current Account, one can access his/her account anytime, anywhere. Withdraw and deposit cash, issue and encash cheques, make balance-inquiries or ask for mini statements, and even request for cheque books any time, anywhere. 5) Reimbursement Current a/c: No more paperwork, no more receipts to keep track of - a hassle-free account that allows one to deposit the reimbursements he/she receives from their company on a monthly basis. How to Open a Reimbursement Account:

Procure an Account Opening Document (AOD) from HDFC Bank. (If one has just joined, first request the company to open up a Salary Account).

Mention Salary Account number and Debit Card number on the AOD so that Debit card can be linked to both, Salary Account as well as new Reimbursement Account.

6) RFC-Domestic a/c: How to Open a RFC Domestic Account

Choose the currency in which one wishes to operate. Open an account with an initial amount as per the following-US Dollar = 250 | Great Britain Pound = 200 | Euro = 250 and maintain an Average Quarterly Balance of the same amount.

C. FIXED ACCOUNT

1) Super saver a/c: 33

It's like two Accounts working in tandem to give the better returns. Choose between a Savings Account or Current Account to link to Fixed Deposit. Avail an overdraft facility to supplement household or business needs Pay back with interest only on the drawn amount, while the remaining Fixed Deposit continues to earn interest. Flexibility in altering period of deposit, maturity and payment instructions, principal amount and rollover mode.

2) Sweep in a/c: Choose between a Savings Account and Current Account to link to Fixed Deposit. Earn higher interest on the money till it is swept-in, while the remaining Fixed Deposit continues to earn interest. Only an exact amount required to make up for the deficit in the Savings account is withdrawn from Fixed Deposit (units of Re. 1/-) thereby minimizing interest loss. Multiple deposits can be linked to the Savings account. Flexibility in altering the period of deposit, maturity and payment instructions, principal amount and rollover mode.

D. DEMAT ACCOUNT: HDFC BANK is one of the leading Depository Participant (DP) in the country with over 8 Lac demat accounts. HDFC Bank Demat services offer their customers a secured and convenient way to keep track of their securities and investments, over a period of time, without the hassle of handling physical documents that get mutilated or lost in transit. HDFC BANK is Depository participant both with -National Securities Depositories Limited (NSDL) and Central Depository Services Limited (CDSL).

E. LOANS 1) PERSONAL LOAN Borrow up to Rs 10, 00,000 for any purpose depending on customers requirements. Flexible Repayment options, ranging from 12 to 48 months. Repay with easy EMIs. One of the lowest interest rates. Hassle free loans - No guarantor/security/collateral required. Speedy loan approval. Convenience of service at customers doorstep. Customer privileges 34

2) HOME LOAN Home Loan HDFC bank offer home loans for individuals to purchase (fresh / resale) or construct houses. Home loans can be applied for individually or jointly. HDFC finances up to 85% maximum of the cost of the property (Agreement value + Stamp duty + Registration charges). Home Improvement Loan - HIL facilitates internal and external repairs and other structural improvements like painting, waterproofing, plumbing and electric works, tiling and flooring, grills and aluminum windows. HDFC finances up to 85% of the cost of renovation (100% for existing customers). Flexible repayment options to suit the customers individual needs.

3) NEW CAR LOAN Covers the widest range of cars and multi-utility vehicles in India. Avail 100% finance on customers favorite car Flexible repayment options, ranging from 12 to 84 months. Borrow up to 3 times annual salary (for salaried professionals) and 6 times annual income (for self employed professionals). Speedy processing - within 48 hours Repay with easy EMIs. Attractive car loan plans - To Fastrack customers loan.. Attractive Interest rates

4) USED CAR LOANS Choose any car manufactured in India within a certain age. Borrow up to 80% of the value of the car Flexible repayment options, ranging from 12 to 60 months. Borrow up to 3 times annual salary (for salaried professionals) and 6 times annual income (for self employed professionals). Additional loan on existing loan - If anyone is an existing HDFC Bank Auto loan customer with a clear track record of 12 months or more, then he/she can get an additional loan to the extent of his/her existing loan amount at attractive rate of interest.

5) LOAN AGAINST SECURITIES With HDFC Bank's Loan against Securities, one can get an overdraft against securities like Equity Shares, Mutual Fund Units, GOI Relief Bonds, LIC Policies, NSC, KVP, UTI Bonds (6.60% ARS & US64 Bonds) and Gold Deposit Certificates, while still retaining ownership. And the best part is that one can continue to enjoy all shareholder benefits such as rights, dividends and bonuses 35

6) LOAN AGAINST PROPERTY HDFC Bank brings their customers Loan Against Property (LAP). One can now take a loan against residential or commercial property, to expand his/her business, plan a dream wedding, fund childs education and much more. Loan to purchase Commercial Property (LCP) is a specially designed product to help expand their business without reducing the capital from their business.

7) COMMERCIAL VEHICLE FINANCE Truck? Tempo? Or a Tipper? If some one is looking for finance to buy commercial vehicle. HDFC bank

offer hassle-free Commercial Vehicle Loan with the best terms for funding at the most attractive rates in India.

8) WORKING CAPITAL FINANCE HDFC a bank with substantial appetite for recognized credits. They have a team of customer-driven relationship managers with wide industry experience in various segments. HDFC provide working capital finance by way of cash credit or loans suitably structured for the transporter to fund day-to-day operations like fuel, tyre replacement, repairs, salary, maintenance, etc.

9) CONSTRUCTION EQUIPMENT FINANCE Forklifts?WheelLoaders?Excavators? If some one is looking for finance to buy construction equipment. HDFC bank offers hassle-free Construction Equipment Loan with the best terms for funding at the most attractive rates in India.

F. CARDS CREDIT CARDS: Besides arming one with unmatched spending power, HDFC Banks Credit Cards are designed to meet ones unique needs. 1) INTERNATIONAL SILVER CREDIT CARD Rewards points, Insurance to suit ones needs! Loyalty does definitely reap rewards with HDFC Bank with lower interest rates and privilege pricing on its products. Add on cards One can get up to 3 supplementary cards for his/her spouse, parents, siblings (own brother/sister), son and/or daughter (over 18 years) and allow them to enjoy the many benefits of a HDFC Bank International Silver Credit Card.

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Zero liability on lost card One can report the credit card loss immediately to the executives at the HDFC bank 24-hour call centers. After reporting to the bank, one carries zero liability on any fraudulent transactions on his/her card.

Widely accepted Accepted at over 110,000 merchant establishments across India and Nepal and close to 18 million merchant establishments around the world.

2) GOLD CREDIT CARD Up to 5% cash back on air ticketing: Get whopping 5% cash back on any domestic air ticket purchased with HDFC Bank Gold Credit Card directly from the Airline Company's website, for transactions above Rs 10000. For transactions up to Rs 10000, get 2.5% cash back. 5% cash back on train ticketing Get 5% cash back on railway tickets purchased with HDFC Bank Gold Credit Card at the Indian Railway. Insurance benefits HDFC Banks provide air accident cover of Rs.25 lakhs, rail/road accident cover of Rs 3 lakhs and accidental hospitalization cover of Rs 50,000 absolutely free on the card. Greater reward points With the HDFC Bank Gold Credit Card one can earn 2 reward points for every Rs. 100 spent on the card. Revolving credit facility Pay a minimum amount, which is 5% (subject to a minimum amount of Rs.200) of total bill amount or any higher amount whichever is convenient and carry forward the balance to a better financial month. For this facility one can pay a nominal charge of just 2.95% per month (35.4% annually) (2.85% per month 34.2% annually for HDFC Bank Account Holders).

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3) TITANIUM CREDIT CARD The HDFC Bank Titanium Credit Card is quite simply the most exclusive Credit card one could ask for. Find out all it can do for its customers. And one could never be satisfied with anything less. Discounts on hotel tariff Enjoy flat 50% discounts on 150 hotels in India and 1500 hotels worldwide, with the complimentary membership to International Business Travelers' Club. Conversion of reward points to air miles one can redeem his/her accumulated reward points for air miles on India's top airlines - Jet Airways, Indian, Air Sahara & Kingfisher Airlines. Lowest ever interest rates If one choose to use the Revolving Credit Facility, he/she would pay the lowest-ever interest rate of 1.95% per month. This would translate to ample flexibility in terms of financial planning at his/her convenience. Zero petrol surcharge One can earn while spending on fuel!!! As a HDFC Bank Titanium Card customer, one can enjoy not only a full waiver of the fuel surcharge that would be normally applicable otherwise; one can also get the benefit of earning reward points on these spends. Lost card liability In case anyone lose his/her card, intimate the bank immediately. If any fraudulent transactions happen after the intimation, the individual is fully absolved of any liability on those transactions up to Rs. 2.00 lacs. Interest free credit facility The Card now get their customers highest Free Credit Period of up to 55 days from the date of purchase (subject to the submission of the charge by the Merchant).

4) VALUE PLUS CREDIT CARD Its power packed with a host of unmatched features that provides customers family with true Value and savings. No wonder HDFC bank call it the HDFC Bank International Value plus Credit Card Like the name suggests, the Value plus Credit Card bring their customers added value unlike any other card. It is Guaranteed Cash Back cards which enable their customers to earn up to 5% Cash Back.

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Children Future Secured HDFC Bank values the commitment and has designed a comprehensive insurance package of Rs. 1 Lakh enabling children to continue their education in the unfortunate event of loss of ones life due to accident.

Household Insurance HDFC Bank Value plus Credit Card also comes with a comprehensive House Hold Insurance Policy that covers damage caused to household contents by fire and burglary up to a value of Rs 1 Lakh.

Worldwide acceptance The HDFC Bank International Value Plus Credit Card is accepted at over 23 million Merchant Establishments around the world, including 110,000 Merchant Establishments in India.

Cash Advance One can just step into any one of HDFC bank ATMs or VISA Member ATMs and withdraw cash up to 30% of his/her credit limit at a very nominal charge.

Accidental Death In case of death in an air accident customers nominated next of kin will receive a compensation of Rs.2, 00,000. And in case of death in a rail or road accident, customers nominated next of kin will receive a compensation of Rs.1, 00,000.

5) HEALTH PLUS CREDIT CARD Imagine a Credit Card that takes care of financial health as well as family's health and fitness. This is not just a card but a guarantee of a healthy and secure future. Cashless Mediclaim This card comes with a free cashless mediclaim cover of Rs.50, 000 plus a critical illness cover of Rs.1.5 lakhs. The critical illness cover includes open heart surgery, cancer, kidney failure and vascular stroke. One can avail cashless mediclaim facility at any of more than 3000 networked hospitals of the Third Party Administrator (TPA) across the country. Extra protection for customers family-Add-on Float Cover An individual has the option of extending the Rs.50,000 mediclaim plus the critical illness cover of

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Rs.1.5 lakhs cover to the add-on cardholders, be it his/her spouse, children, brothers or sisters. What's more, the add-on cardholders can also avail the discounts at participating hospitals. Protection through insurance The HDFC Bank Health plus International Credit Card offer their customers a comprehensive insurance package at no additional cost. In case of death in an air accident, the nominated kin will receive a compensation of Rs.10 lakhs. In the case of a rail or road accident the nominated kin will receive a compensation of Rs.2 lakhs. Cash Advance one can just step into any one of HDFC bank ATMs or any ATM displaying MasterCard logo or Maestro Cirrus logo and withdraw cash up to 30% of his/her credit limit at a very nominal charge (Please refer to the Schedule of charges). Third Party Administrator (TPA) The TPA is an intermediately between the hospital, the Insurer and the card member. Under the TPA system, the mediclaim policyholders need not pay the medical bills upfront. Instead the settlement is to be done between the hospital and the TPA. For the customer, medical expenditure becomes a cashless transaction. For the HDFC Bank Health Plus International Credit Card, the insurer United India Insurance company (UIIC) has appointed Family Health Plan Limited (FHPL) as the TPA.

G. ATM- cum DEBIT CARDS ATM The Bank has 4,000 networked ATMs across these cities. Moreover, HDFC Bank's ATM network can be accessed by all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders. The ATMs of HDFC bank provide multiple facilities to its customers including cheque drop facility, withdrawal of cash and coins anytime, mini statement of their balance and all account related information. DEBIT CARDS What if one could carry the bank account with oneself? HDFC Bank Debit Cards give the complete and instant access to the money in the accounts without the risk or hassle of carrying cash. Choose from: 1) Classic Cards (Easy shop International Debit Card) 2) Specialized Cards(Easy shop Womans Advantage Debit Card) 3) Premium Cards(Easy shop Gold Debit Card)

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1) Easy shop International Debit Card Daily Limits: Rs. 15000 at ATMs for Withdrawal and Rs. 25000 at merchant establishments for shopping. One can access his/her bank account at over 8, 00,000 Visa/Maestro/Cirrus ATMs in India and abroad. Shop at more than 3, 50,000 outlets in India and 13 million worldwide. The amount is debited directly to the customers account. One can use his/her card overseas. His/her account is debited in Rupees regardless of the currency in which he/she spends. Worldwide assistance from Visa and MasterCard on customers card. 2) Easy shop Womans Advantage Debit Card HDFC Bank Easy Shop Woman's Advantage Debit Card is India's first Woman's Debit Card of its kind. Not only does it replace its customers ATM card, it also opens a world of privileges that match his/her status and lifestyle. Features & benefits Cash Back of Re. 1 for every Rs. 200 spent: For every Rs. 200 that the individual will spend , he/she will receive Re. 1 as cash back .This cash back is valid on all purchases made through the card, at all times of the year. Specialized Services: A unique service number will be available for Woman's Debit Card customers to avail information / booking for the services listed ahead. Just call, quote the card number and use any of the services. Entertainment assistance: Dining Referral and Reservation Assistance Flower & Gift Delivery Movie Tickets Home assistance: Financial Planning & Advisory Services Assistance Electrical & Electronic Gadget Repair Assistance Pest Control Assistance Home Cleaning Assistance Wellness: Medical Check up Packages Nursing Care Arrangement

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3) Easy shop Gold Debit Card HDFC Bank Easy Shop Gold Debit Card not only replaces customers ATM / Regular Debit Card, it also opens a world of privileges that match the customers status and lifestyle. Daily Limits: Rs. 25000 at ATMs for Withdrawal and Rs. 50000 at merchant establishments for shopping. Cash Back: For every Rs. 100 that an individual will spend, he/she will receive Re. 1 as cash back. This cash back is valid on all purchases made through the card, at all times of the year!!! 0 % petrol surcharge at select Petrol pumps*: As a Gold Card holder, any petrol surcharge levied on customers Card at any petrol pump in India will be reversed in the subsequent month. Insurance cover*: The following are included in the insurance covers: Death Cover by Air / Road - Sum assured Rs. 5, 00,000 Fire & Burglary for the items purchased under Debit Card (up to 6 months)

H. PREPAID CARDS

1) ForexPlus Card HDFC Bank brings their customers the ForexPlus Travel Card - a pre-paid travelers card designed to give its customer a secure and hassle-free travel experience. No more chasing moneychangers. Or paying transaction charges for shopping abroad. The ForexPlus Travel Card is ideal for travelers since it can be blocked if stolen and reloaded, while the customers are still abroad! In fact, it is the perfect answer to all their foreign exchange needs.

2) Gift Plus Card The card has been packaged to suit any gifting occasion and is available for any denomination of the customers choice. It gives gifting the personal touch that everyone desire and also gives the beneficiary the freedom to choose the way they want to use it!

I. INVESTMENTS & INSURANCE HDFC Bank ensures its customers money is not just in safe hands; it also works to their advantage. It helps them to invest wisely through its financial and investment services. 42

 Mutual funds Mutual funds are funds that pool the money of several investors to invest in equity or debt markets. Mutual Funds could be Equity funds, Debt funds or balanced funds. Funds are selected on quantitative parameters like volatility, FAMA Model, risk adjusted returns, rolling return coupled with a qualitative analysis of fund performance and investment styles through regular interactions / due diligence processes with fund managers. Advantages of investing into a Mutual Fund A large part of the success of mutual funds is also the advantages they offer in terms of diversification, professional management and liquidity. Flexibility - Mutual Fund investments also offer customers a lot of flexibility with features such as systematic investment plans, systematic withdrawal plans & dividend reinvestment. Affordability - They are available in units so this makes it very affordable. Because of the large corpus, even a small investor can benefit from its investment strategy. Liquidity - In open ended schemes, one has the option of withdrawing or redeeming his/her money at any point of time at the current NAV. Diversification - Risk is lowered with Mutual Funds as they invest across different industries & stocks. Professional Management - Expert Fund Managers of the Mutual Fund analyse all options based on experience & research.

INSURANCE
HDFC Bank offers a world of choice in insurance. One can now avail of Life - Insurance plans from HDFC Standard Life Insurance. Life Insurance Unit Linked Insurance Plans For your child: Give your children a head start by growing your savings. Invest in HDFC Unit Linked Young Star that gives double benefit. For retirement 43

Earn a pension for life by maximizing your returns. Invest in HDFC Unit Linked Pension. For the long-term Invest in a savings plan with a long-term horizon and get life cover too. Invest in HDFC Unit Linked Endowment. Conventional Insurance Plans To realize your child's goals Make your child's dreams come true by investing in a plan that fetches a lump sum amount at maturity. Invest in HDFC Children's Plan. For a long-term horizon Invest in HDFC Savings Assurance Plan which is a pure investment product having tax sops of an insurance product.

For cash flow Get cash lump sums at regular intervals to meet your financial needs. Invest in HDFC Money Back Plan. Term Assurance Plan For life cover Secure the future of your loved ones by providing for their financial security. Buy HDFC Term Assurance Plan.

Financial Planning
The Financial Planning service is offered as an option to long term investors. The portfolio is advised on in a passive investment style with the asset category as mutual funds. The planner is sui for investors who wish to take a asset allocation based, long term investment outlook, ignoring the short term volatilities of financial markets. Financial Planning takes into account: Desired asset allocation, risk profile and return expectations

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Building cash flows correlating all expenses and income. Inflation and outflows due to loans are considering building the financial plan

Future goals like retirement, housing and children's education / marriage or other needs

Equities & Derivatives In financial markets, the only constant thing is change. At such times, HDFC Securities offer their customers a unique gamut of services designed to put them in charge of their finances and let them trade in the comfort of their home or office. Finally, one can trade with complete ease. The HDFC Securities trading account has a unique 3-in-1 feature that integrates his/her HDFC Securities trading account with his/her existing HDFC bank savings account and existing Demat account. At his/her instructions, funds / shares can be seamlessly moved from his/her linked Demat/Bank account to execute his/her transactions.

Mudra Gold Bar HDFC Bank presents Mudra, an offering worth its weight in gold. Mudra is a 24 Karat, 99.99% pure gold bar that one can purchase for investment or gifting. Gold continues to be one asset that appreciates steadily. HDFC Bank now offers Pure Gold bars imported from Switzerland with an Assay certification, signifying the highest level of purity as per international standards. Pure and Reliable

Mudra is great value for money. These 24 K Gold Bars are made in Switzerland and come with an Assay certification, signifying the highest level of purity as per international standards. Convenience

Mudra Gold Bars are currently available in 5 g, 10 g* and 50 g* weight. The Gold Bars are presented in tamperproof certicard packs. Price

Mudra Gold Bars are competitively priced based on the daily prices in the international bullion market. The price is inclusive of customs duty and other charges involved in the retailing of gold bars.

J. FOREX AND TRADE SERVICES If one needs to deal in foreign currency and keep tabs on exchange rates every now and then, transfer monies to India, make payments etc., HDFC Bank has a range of products and services that one can choose from to transact smoothly, efficiently and in a timely manner. Foreign Exchange and Trade Services 45

The following are different methods of transacting in Foreign Exchange and remitting money. Travelers Cheques Foreign Currency Cash Foreign Currency Drafts Cheque Deposits Remittances Cash to Master Trade Services Forex Services Branch Locator

K. PAYMENT SERVICES With HDFC Bank's payment services, one can bid goodbye to queues and paper work. The bank range of payment options make it easy so that one can pay for a variety of utilities and services. Net Safe: One can now shop online without revealing his/her HDFC Bank Credit Card number. Bill Pay: Payment of telephone, electricity and mobile phone bills at customers convenience. Through the Internet, ATMs, mobile phone and telephone - with BillPay, banks comprehensive bill payments solution. InstaPay: Payment of bills, make donations and subscribe to magazines without going through the hassles of any registration. Direct Pay: Shop or Pay bills online without cash or card. Debit the account directly with the banks Direct Pay service! Visa Money Transfer: Transfer funds to any Visa Card (debit or credit) within India at customers convenience through HDFC Bank's Net Banking facility. E-Monies National Electronic Funds Transfer: Transfer funds from the account to other Bank accounts across India - FREE of cost! Online Payment of Excise & Service Tax: Make the Excise and Service Tax payments at customers convenience through HDFC Bank's Net Banking facility.

46

II.

PRIVATE BANKING

HDFC Bank offers Private Banking services to high net worth individuals and institutions. Its team of seasoned financial and investment professionals provide objective guidance backed by thorough research and in-depth analysis keeping in mind customers financial goals. Multiple Recognition from Euro money: At HDFC Bank have always strived towards providing exceptional service to each of its esteemed customers. As testament to this dedication, the bank has earned the following ranks in a recently conducted Euro money Survey. Rated as the Best Private Bank in the Super Affluent Category in India.

III. NRI BANKING

1. NRO FIXED DEPOSIT Features & Benefits Open the deposit jointly with a Resident Indian. Avail of a loan on up to 75% of your deposit. Repatriate the interest on customers deposit Interest credited at least every three months Nomination Facility available

2. Cluster Deposit: The NRO Deposit is held in clusters of Re.1, thus allowing to encash part of the deposit amount, making it possible to withdraw part of the deposit before the maturity date, while the balance continues to earn interest at the contract rate. Initial Fixed Deposit: Rs. 25,000/Add-on Fixed Deposits: Rs. 10,000/-

3. NRE FIXED DEPOSITS Open the deposit jointly with any other NRI Avail of a loan of up to 75% of customers deposit Repatriate customers complete deposit (principal and interest) at any time. The entire deposit (principal and interest) is exempt from tax.

IV. WHOLESALE BANKING

CORPORATES 47

Corporate Banking reflects HDFC Bank's strengths in providing its corporate clients in India, a wide array of commercial, transactional and electronic banking products. The bank has achieved this through innovative product development and a well-integrated approach to relationship management. LARGE CORPORATES HDFC bank offer blue chip companies in the India, a full range of client-focused corporate banking services, including working capital finance, trade and transactional services, foreign exchange and cash management, to name a few. The product offerings are suitably structured taking into account a client's risk profile and specific needs. Based on its superior product delivery, industry benchmark service levels and strong customer orientation, the bank have made significant inroads into the formal banking consortia of a number of Indian companies including multinationals, domestic business houses and prime public sector companies.

Funded Services Working Capital Finance Bill Discounting Export Credit Short Term Finance Structured Finance Term Lending

Non Funded Services Letter of Credit Collection of Documents Bank Guarantees

Value Added Services Syndication Services Real Time Gross Settlement Cash Management Services Channel Financing Vendor Financing Corporate Salary Accounts Reimbursement Account Forex Desk Money Market Desk Derivatives Desk Employees Trusts Cash Surplus Corporates Tax Collection Bankers to Right/Public Issue

V. Internet Banking
Supply Chain Management Payment Gateway Services Corporate Internet Banking 48

Supply Chain Partners At HDFC Bank they create Supply Chain Finance solutions that enable their clients to automate supply chain management resulting in operational efficiency and supply chain gains. Their vast array of services and supply chain solutions help in seamless transfer of funds, faster delivery of goods and reduction of processing costs. And all this from their website or their revolutionary ENet service.

Agricultural Lending Everyone who is involved in agricultural industry knows that the business is not usual. Each agribusiness faces different challenges and has unique needs. From the fluctuating cash flows to the unpredictability of the weather, managing a successful agribusiness requires a distinctive approach. Thats why the HDFC Bank has solutions that are chiefly dedicated to agribusiness.

Small & Medium Enterprises At HDFC Bank they understand how much of hard work goes into establishing a successful SME. They also understand that customers business is anything but "small" and as demanding as ever. And as customers business expands and enters new territories and markets, he/she need to keep pace with the growing requests that come in, which may lead to purchasing new, or updating existing plant and equipment, or employing new staff to cope with the demand. That's why HDFC Bank has assembled products, services, resources and expert advice to help ensure that customers business excels. Their solutions are designed to meet customers varying needs. The following links will help identify his/her individual needs.

Funded Services Funded Services from HDFC Bank are meant to directly bolster the day-to-day working of a small and a medium business enterprise. From working capital finance to credit substitutes; from export credit to construction equipment loan - they cater to virtually every business requirement of an SME.

Non-Funded Services Under Non-Funded services HDFC Bank offers solutions that act as a catalyst to propel customers business. Imagine a situation where one have a letter of credit and need finance against the same or one have a tender and need to equip himself/herself with a guarantee in order to go ahead. This is exactly where the bank can help their customers so that they dont face any roadblocks when it comes to their business.

Specialized Services 49

HDFC Bank is one of the most trusted entities when it comes to specialized services like selling of precious metals to customers. Under specialized services one can also avail customized control of his/her value chain through its internet banking platform. Value Added Services There is a plethora of services that the bank offer under value added services. There's corporate salary account which ensures smooth payment methods to customers staff. One can avail an assortment of credit cards and debit cards from its merchant services. Internet Banking Internet banking is a revolutionary service under the banking sector and HDFC Bank is a forerunner in providing with this service. We provide state-of-the-art payment gateway services to industries and companies in order to ease transaction processing. This in turn enhances the credibility of customers business and makes banking extremely cost-efficient. Financial Institutions & Trusts HDFC Bank provides correspondent bank services to Co-operative Banks, Private Banks, and Foreign Banks & RRB's. Banks can leverage HDFC banks branch network, technology and product capability. The bank has a wide range of products engineered to suit the needs of the banking sector this is backed up by a dedicated Relationship Management Team and dedicated servicing department. Institutions need a bank that uses its financial skills to streamline performance and build business. Therefore HDFC Bank focuses on responding to the unique environments of each and every client, configuring its core capabilities to satisfy those needs within locations or sectors.

Government Sector HDFC Bank acts as an active medium between the government and the customers by means of various services. These services include: Tax Collection wherein customers can directly pay their taxes like Direct taxes, Indirect taxes and Sales Tax collections at their local HDFC Bank. E-Ticketing - Helps the customer by providing him a direct access to book a Railway Ticket online and get it home delivered. Opening of L/C's is done by the bank on behalf of Government of India, Mints and Presses, thus facilitating imports for the Government. Collection of levies and taxes on behalf of Municipal Corporations i.e. Kalyan -Dombivli Municipal Corporation, is undertaken by the Bank. Disbursement of Pension to retired Employees of Central Govt and Defence is directly done by HDFC Bank along with the disbursement of pension to the members of EPFO (Employees Provident Fund Organization). 50

Electronic Collection of fees on behalf of DGFT is done by the bank too.

CHAPTER- 5

CUSTOMER SATISFACTION EFFORTS BY BANK

HDFC

51

Customer satisfaction efforts by HDFC

In todays world of cut throat competion, all the organizations aim at customer satisfaction in order to reap maximum profits, which is their primary objective. Customer satisfaction lays the foundation of HDFC bank and the bank strives hard to make its customers happy and content in every possible way. So far HDFC bank has been successful in achieving its underlying goals which has resulted in the increase in the number of its customers. As HDFC has grown spectacularly in the past two decades it has also widened the range of its products and services according to the requirements and needs of the customers. The customer satisfaction efforts of HDFC bank have been understood and presented through 4 Ps of marketing mix which is as follows:

Product/ Services
HDFC bank offers a wide range of banking services. The products and services offered by the bank are mainly designed to suit customers needs. These can range from Personal banking, Private banking, NRI banking, Wholesale banking, Internet banking etc. Anyone who aims to open a bank account can approach HDFC bank for assistance availing of services.

Price/ Charges
HDFC bank provides attractive discounts on various product and services offered by them. Similarly they also allure their customers by providing their facilities at concessional prices. During festival seasons or on special occasions the bank always comes up with new and customer friendly schemes.

Promotion
Promotion is a means of informing perspective customers about various product and services of the organization and through this only customers get to know the various facilities of an organization. So a company should carefully formulate and design its promotional strategies as it act as the force to boost the companys sales. 52

HDFC bank follows various kinds of promotional strategies like personal selling; advertisements in newspapers, journals, magazines, radio etc. and they also attract and inform people about their upcoming products via hoardings.

Place/ distribution
HDFC bank has set up a large number of outlets in different regions and locality of the country and not only this, the bank has also set up various ATMs so that people can have an easy access to their cash and their account related informations. The ATMs of HDFC bank provide multiple facilities to its customers including cheque drop facility, withdrawal of cash and coins anytime, mini statement of their balance and all account related information. The bank has also opened various customer care centers

Chapter 6
53

DATA ANALYSIS & OBSERVATION

Age
6.1: Age groups of the respondents
no. of Age 18-23 24-29 30-35 35 & above Percentage 16% 20% 30% 34% people 8 10 15 17

Figure 6.1: Age groups of the respondents

54

Percentage

16% 34% 18-23 24-29 20% 30-35 35 & above

30%

From 6.1 and figure 6.1 it can be seen that 16% of respondents i.e. 8 persons come under the age group of 1823, 20% of respondents i.e. 10 persons come under the age group of 24-29, 30% respondents i.e. 15 persons come under the age group of 30-35 and 34% respondents i.e. 17 are above 35 years of age.

Marital status
6.2 Marital status of respondents
Marital status Married Unmarried Percentage 70% 30% no. of people 35 15

Figure 6.2 Marital status of respondents

55

Percentage

unmarried 30% Married unmarried Married 70%

From 6.2 and figure 6.2 it can be seen that 70% of respondents i.e. 35 persons are married and 30% of respondents i.e. 15 persons are unmarried.

Occupation
6.3 Occupation of the respondents
no. of Occupation Business Service Others Percentage 32% 44% 24% people 16 22 12

Figure 6.3 Occupation of the respondents

56

Percentage

24% 32% Business Service Others

44%

From 6.3 and figure 6.3 it can be seen that 32% respondents i.e. 16 persons belong to the category business class, whereas 44% of respondents i.e. 22 persons belong to the category of service class, while 24% of respondents i.e. 12 person belong to the other category of occupation

Association of respondents with HDFC bank

: 6.4 No. of yrs people have been associated with the HDFC bank: no. of years 0-2 2-4 4-6 6-8 8& above 14% 7 Percentage 10% 30% 28% 18% people 5 15 14 9

Figure: 6.4 No. of yrs people have been associated with the HDFC bank: 57

Percentage

14%

10% 0-2

18%

2-4 30% 4-6 6-8 8 & above 28%

From 6.4 and figure 6.4 it can be seen that 10 % of respondents i.e. 5 persons have been associated with the bank for 0-2 years, 30 % of respondents i.e. 15 persons have been associated for a period of 2-4 years, 28 % of respondents i.e. 14 persons have been associated for a period of 4-6 years, 18 % of respondents i.e.9 persons have been associated for 6-8 years and 14 % of respondents i.e. 7 persons have been associated for as long as 8 years and above with the bank.

Services used by the respondents more frequently

6.5 Services frequently used by the respondents

No. of Services Saving ATM- cum debit card credit card Loans Percentage people 56% 50% 32% 12% 28 25 16 6

Figure 6.5 Services frequently used by the respondents

58

Percentage

12% 32% 56% saving ATM- cum debit card credit card loans 50%

From 6.5 and figure 6.5 it can be seen that 56% of respondents i.e. 28 persons are using savings account, 50% of respondents i.e. 25 persons are using ATM- cum debit card, whereas 32% of respondents i.e., 16 persons are using credit cards and 12 % of respondents i.e. 6 persons are using loans, more frequently.

Level of satisfaction enjoyed by the respondents towards the services under study.
6.6 Level of satisfaction enjoyed by the respondents no. of Level of satisfaction Very satisfying Satisfying neither satisfying nor dissatisfying Dissatisfying Very dissatisfying 4-6 2-4 1-2 20% 14% 8% 10 7 4 Scale 8-10 6-8 Percentage people 30% 28% 15 14

Figure 6.6 Level of satisfaction enjoyed by the respondents

59

Percentage

8% 14% 30%

very satisfying 8-10 satisfying 6-8 neither satisfying nor dissatiafying 4-6

20% 28%

dissatisfying 2-4 very dissatisfying 1-2

From s 6.6 and figure 6.6 it can be seen that 30% of respondents i.e. 15 persons are very satisfied with the services of the bank so far and fall under the bracket of 8-10 against the scale of 1 to 10, 28% of respondents i.e. 14 persons are satisfied and fall under the bracket of 6-8, 20% of respondents i.e. 10 persons are neither satisfied nor dis-satisfied with the services and fall under the bracket of 4-6, 14% of respondents i.e. 7 persons are dissatisfied with the services, fall under the bracket of 2-4 and 8% of respondents i.e. 4 persons are very dissatisfied and fall under the bracket of 1-2 against the said scale of 1-10. Note:- the chosen scale 1-10 deliberately ignores 0 because persons falling in the zero bracket would not like to remain with the HDFC bank and may switch over to other bank(s)

Behavioral response of the staff of the HDFC bank towards its customers.
6.7 Level of satisfaction with respect to the behavior of the bank staff. no. of Level of satisfaction Very satisfying Satisfying neither satisfying nor dissatisfying Dissatisfying very dissatisfying 4-6 2-4 1-2 26% 6% 2% 13 3 1 Scale 8-10 6-8 Percentage people 34% 32% 17 16

Figure 6.7 Graphical representation of the above data

60

Percentage

6% 2% 34% 26%

very satisfying 8-10 satisfying 6-8 neither satisfying nor dissatisfying 4-6 dissatisfying 2-4 very dissatisfying 1-2

32%

From 6.7 and figure 6.7 it can be seen that 34% of respondents i.e. 17 persons are very satisfied with the behavior of the HDFC bank staff and fall under the bracket of 8-10 against the scale of 1-10, 32% of respondents i.e. 16 persons are satisfied and fall under the bracket of 6-8, 26% of respondents i.e. 13 persons are neither satisfied nor dissatisfied with the bank staff and fall under the bracket of 4-6, 6% of respondents i.e. 3 persons are dissatisfied and fall under the bracket of 2-4 and 2% of respondents i.e. 1 person is very dissatisfied with the behavior of the HDFC bank staff and falls under the bracket of 1-2 against the scale of 110.

Rating of HDFC bank in comparison to other Indian private banks

6.8 Level of satisfaction towards HDFC bank in comparison to other Indian private banks: no. of level of satisfaction very satisfying Satisfying neither satisfying nor dissatisfying Dissatisfying very dissatisfying 4-6 2-4 1-2 16% 12% 6% 8 6 3 Scale 8-10 6-8 Percentage people 28% 38% 14 19

Figure 6.8 Level of satisfaction towards HDFC bank in comparison to other Indian private banks:

61

Percentage

6% 12% very satisfying 8-10 28% satisfying 6-8 neither satisfying nor dissatisfying 4-6 dissatisfying 2-4 very dissatisfying 1-2 38%

16%

From 6.8 and figure 6.8 it can be seen that 28% of respondents i.e. 14 persons are very satisfied with the HDFC bank in comparison to other Indian private banks and fall under the bracket of 8-10 against the scale of 1-10, 38% of respondents i.e. 19 persons are satisfied and fall under the bracket of 6-8, 16% of respondents i.e. 8 persons are neither satisfied nor dissatisfied and fall under the bracket of 4-6 , 12% of respondents i.e. 6 persons are dissatisfied and fall under the bracket of 2-4 and 6% of respondents i.e. 3 persons are very dissatisfied with the HDFC bank in comparison to other Indian private banks and fall under the bracket of 1-2 against the scale of 1-10.

Experience of respondents while opening a savings account in HDFC bank.

6.9 Level of convenience while opening a savings account: no. of Level of convenience very convenient Convenient Inconvenient Percentage people 60% 30% 10% 30 15 5

Figure 6.9 The graphical representation of the above data

62

Percentage

10%

very covenient 60% 30% 60% convenient 30% inconvenient 10%

From 6.9 and figure 6.9 it can be seen that the experience of various respondents, while opening the savings bank acco

varied. 60% of respondents i.e. 30 persons felt the experience of opening the savings account very convenient, while 30

respondents i.e.15 persons felt the experience just convenient while opening a savings account, where as 10% of respon persons felt the experience inconvenient while opening a savings account in HDFC bank.

Frequency of using the savings bank account by the respondents in HDFC bank
6.10 The frequency of using a savings bank account no. of Category twice a week once a week once a month any other Percentage people 26% 42% 18% 14% 13 21 9 7

Figure 6.10 The frequency of using a savings bank account

63

Percentage

14% 26% twice a week 18% once a week once a month any other

42%

From 6.10 and figure 6.10 it can be seen that 26% of respondents i.e. 13 persons operated their savings bank accounts

week, 42% of respondents i.e. 21 persons operated their savings bank accounts once a week, whereas 18% of responde

persons operated their savings bank accounts once a month, while 14% of respondents i.e. 7 persons operated their sav bank accounts at varied intervals not covered above.

Modes of operation of the accounts by respondents in HDFC bank.

6.11 The modes of operation of saving bank accounts by the respondents: no. of Category through ATM- cum debit card through cheque by visiting bank personally 86% 90% 20% 43 45 10 Percentage people

Figure 6.11 The modes of operation of saving bank accounts by the respondents:

64

Percentage

20% through ATM- cum debit card 86% through cheque by visiting bank 90%

From 6.11 and figure 6.11 it can be seen that 86% of respondents i.e. 43 persons operated their savings bank accounts

ATM-cum debit cards, whereas 90% of respondents i.e. 45 persons operated their savings bank accounts through chequ 20% of respondents i.e. 10 persons preferred to visit the bank personally for the purpose.

Note. The percentages of the respondents are seen to be overlapping for the reason that many people choose to make us multiple modes of operation.

Time taken by the HDFC bank while depositing cash in savings bank account as reported by the respondents
6.12 Time span of depositing cash in savings bank account no. of Time span Up to 5 mins. Up to10 mins. More than 10 mins. Percentage people 16% 40% 44% 8 20 22

Figure 6.12 Time span of depositing cash in savings bank account

65

Percentage

16%

44%

up to 5 mins. up to10 mins. more than 10 mins. 40%

From 6.12 and figure 6.12 it can be seen that 16% of respondents i.e. 8 persons said that the bank takes up to 5 minute accept the transaction in savings bank account, while 40% of respondents i.e. 20 persons said that the bank takes up to

minutes to accept the transaction, whereas 44% of respondents i.e. 22 persons said that the bank takes more than 10 mi accept the transaction in savings bank account.

Time taken by the HDFC bank to encash cheques from savings bank account as reported by the respondents
6.13 The time span to encash cheques from savings bank account no. of Time span Up to 5 mins. Up to 10 mins. More than 10 mins. Percentage people 12% 42% 46% 6 21 23

Figure 6.13 The time span to encash cheques from savings bank account

66

Percentage

12%

46%

up to 5 mins. up to 10 mins. more than 10 mins. 42%

From 6.13 and figure 6.13 it can be seen that 12% of respondents i.e. 6 persons said that the bank takes up to 5 minute

encash cheques from the savings bank account, while 42% of respondents i.e. 21 persons said that the bank takes up to

minutes to encash cheques, whereas 46% of respondents i.e. 23 persons said that the bank takes more than 10 minutes t encash cheques from the savings bank account.

Level of satisfaction of respondents with respect to account statements instead of conventional p book in HDFC bank
6.14 The level of satisfaction towards the account statements no. of Level of satisfaction very satisfying Satisfying neither satisfying nor dissatisfying Dissatisfying very dissatisfying 4-6 2-4 1-2 10% 30% 12% 5 15 6 Scale 8-10 6-8 Percentage people 22% 26% 11 13

Figure 6.14 The level of satisfaction towards the account statements 67

Percentage

12%

very satisfying 8-10 22% satisfying 6-8 neither satisfying nor dissatisfying 4-6 dissatisfying 2-4 26% very dissatisfying 1-2

30%

10%

From 6.14 and figure 6.14 it can be seen that 22% of respondents i.e.11 persons are very satisfied with the system of is account statements instead of conventional pass book and fall under the bracket of 8-10 against the scale of 1-10, 26% respondents i.e. 13 persons are just satisfied with this system and fall under the bracket of 6-8, 10% of respondents i.e.

persons are neither satisfied nor dissatisfied with the system and fall under the bracket of 4-6, whereas 30% of respond

i.e.15 persons are dissatisfied with the system and fall under the bracket of 2-4, while 12% of respondents i.e. 6 person

very dissatisfied with the system of issuing account statements instead conventional pass books and fall under the brack 2 against the scale of 1-10.

Note: respondents who are very dissatisfied with this system is because they feel that these account statements keep pil and are very difficult to manage

Response of the customers with respect to the lower limit for opening a savings account in HDFC which is Rs. 5000.
6.15 Response of the customers with respect to the lower limit which is Rs. 5000 no. of Category Yes No Percentage people 70% 30% 35 15

Figure 6.15 Response of the customers with respect to the lower limit which is Rs. 5000

68

Percentage

30% yes no 70%

From 6.15 and figure 6.15 it can be seen that 70% of respondents i.e.35 persons are satisfied with the lower limit whic

5000 for opening a savings bank account, while on the other hand 30% of respondents i.e. 15 persons are not satisfied w limit as they sometimes found it unaffordable.

Response of the customers towards the ATM facility of HDFC bank

6.16 The level of convenience with respect to the ATM facility no. of Level of convenience very convenient Convenient Inconvenient Percentage people 32% 56% 12% 16 28 6

Figure 6.16 The level of convenience with respect to the ATM facility

69

Percentage

12% 32% very convenient 32% convenient 56% inconvenient 12%

56%

From 6.16 and figure 6.16 it can be seen that 32% of respondents i.e. 16 persons found the ATM facility of the bank v respondents i.e. 6 persons didnt find the ATM facility of the bank convenient.

convenient, while on the other hand 56% of respondents i.e. 28 persons found the facility just convenient, whereas 12%

Response of the customers regarding the HDFC ATM outlets distance from their residents
6.17 The response of the customers with respect to the ATMS nearness no. of Category Yes No Percentage people 88% 12% 44 6

Figure 6.17 The response of the customers with respect to the ATMS nearness

70

Percentage

12%

yes no

88%

From 6.17 and figure 6.17 it can be seen that 88% of respondents i.e. 44 persons said that the ATM outlet of the bank their residents and 12% respondents i.e. 6 persons said that the ATM outlets are far from their residents

Response of the customers in the event of failure of ATMs of HDFC bank

6.18 The response of the customers with respect to the failure of ATMs no. of Category Yes No Percentage people 32% 68% 16 34

6.18 The response of the customers with respect to the failure of ATMs

71

Percentage

32% yes no 68%

From 6.18 and figure 6.18 it can be seen that 32% of respondent i.e. 16 persons said that there was an occasion when t

of the bank was out of order, while 68% of respondents i.e. 34 persons said that there wasnt any occasion when the AT the bank was out of order.

Responses regarding the usage of other banks ATM in the event of failure of HDFC ATM
6.19 The responses regarding the usage of other banks ATM no. of Category Yes No Percentage people 28% 72% 14 36

Figure 6.19 The responses regarding the usage of other banks ATM

72

Percentage

28% yes no 72%

From 6.19 and figure 6.19 it can be seen that 28% of respondents i.e. 14 persons have used the ATM of other banks in

event of failure of HDFC bank ATM, while 72% of respondents i.e. 36 persons did not use the ATM of any other ban

Number of times respondents used the ATM of other banks

6.20 The number of times respondents used the ATM of other banks no. of Frequency 1-5 times 5-10 times more than 10 times Percentage people 10% 10% 8% 5 5 4

Figure 6.20 The number of times respondents used the ATM of other banks

73

Percentage

8% 10% 1-5 times 5-10 times more than 10 times

10%

From 6.20 and figure 6.20 it can be seen that 10% of respondents i.e. 5 persons have used the ATM of other banks 1-5 whereas 10% of respondents i.e. 5 persons have used the ATM of other banks 5-10 times and 8% of respondents i.e. 4 have used the ATM of other banks more than 10 times.

Experience of respondents with the fake note(s) along with legal currency from the ATM of HDF

6.21 The response of the respondents towards the fake note no. of Category Yes No Percentage people 2% 98% 1 49

Figure 6.21 The response of the respondents towards the fake note

74

Percentage

2%

yes no

98%

From 6.21 and figure 6.21 it can be seen that 2% of respondents i.e. 1 person had an encounter with the fake note alon legal currency from the ATM of HDFC, whereas 98% of respondents i.e. 49 persons did not face such a problem.

Time taken to receive credit card by respondents from the HDFC bank
6.22 The time span taken by the HDFC Bank no. of Time span one week two weeks more than two weeks Percentage people 60% 36% 4% 30 18 2

Figure 6.22 The time span taken by the HDFC Bank

75

Percentage

4%

36% 60%

one week two weeks more than two weeks

From 6.22 and figure 6.22S it can be seen that 60% of respondents i.e. 30 persons received their credit card in the time

one week, whereas 36% of respondents i.e. 18 persons received their credit card in the time span of two weeks and 4% respondents i.e. 2 persons received their cards after two weeks.

Types of credit cards used by the respondent

6.23 The types of credit cards used by the respondents no. of Category international silver credit card gold credit card titanium credit card value plus credit card 10% 34% 16% 40% 5 17 8 20 Percentage people

Figure 6.23 The types of credit cards used by the respondents

76

Percentage

10% international silver credit card 40% 34% gold credit card titanium credit card value plus credit card 16%

From 6.23 and figure 6.23 it can be seen that 10% of respondents i.e. 5 persons used international silver credit card, 34 respondents i.e. 17 persons used gold credit card, 16% of respondents i.e. 8 persons used titanium credit card and 40% respondents i.e. 20 persons used value plus credit card.

Frequency of the use of credit cards by the respondents

6.24 The frequency of the use of credit cards no. of Frequency Weekly Monthly any other Percentage people 62% 28% 10% 31 14 5

Figure 6.24 The frequency of the use of credit cards

77

Percentage

10%

weekly 28% 62% monthly any other

From 6.24 and figure 6.24 it can be seen that 62% of respondents i.e. 31 persons used their card weekly, 28% of respo

i.e. 14 persons used their card monthly and 10% of respondents used their credit card at varied intervals not covered ab

Experience of respondents towards the facilities of credit cards offered by HDFC bank
6.25 The level of satisfaction with respect to facilities of credit card no. of Level of satisfaction very satisfying Satisfying neither satisfying nor dissatisfying Dissatisfying 4-6 2-4 8% 6% 4 3 Scale 8-10 6-8 Percentage people 40% 46% 20 23

Figure 6.25 The level of satisfaction with respect to facilities of credit card

78

Percentage

8%

6% very satisfying 8-10 40% satisfying 6-8 neither satisfying nor dissatisfying 4-6

46%

dissatisfying 2-4

From 6.25 and figure 6.25 it can be seen that the experience of various respondents varied, 40% of respondents i.e. 20

felt the experience very satisfying and fall under the bracket of 8-10 against the scale of 1-10, 46% of respondents i.e. 2

persons felt the experience just satisfying an fall under the bracket of 6-8, whereas 8% of respondents i.e. 4 persons fel

satisfied nor dissatisfied and fall under the bracket of 4-6, while 6% of respondents i.e. 3 persons felt dissatisfied with t facilities of credit card and fall under the bracket of 2-4 against the scale of 1-10.

Response of the customers towards the assistance rendered by the HDFC bank in the event of th of credit card
6.26 The level of satisfaction towards the assistance rendered by the bank No, of Level of satisfaction very satisfying Satisfying neither satisfying nor dissatisfying Dissatisfying very dissatisfying 4-6 2-4 1-2 12% 6% 4% 6 3 2 Scale 8-10 6-8 Percentage people 36% 42% 18 21

Figure 6.26 The level of satisfaction towards the assistance rendered by the bank

79

Percentage

6% 4% 12% 36%

very satisfying 8-10 satisfying 6-8 neither satisfying nor dissatisfying 4-6 dissatisfying 2-4

42%

very dissatisfying 1-2

From 6.26 and figure 6.26 it can be seen that 36% of respondents i.e. 18 persons are very satisfied with the assistance

by the bank in the event of loss of credit card and fall under the bracket of 8-10 against the scale of 1-10, 42% of respo

i.e. 21 persons are just satisfied with the assistance by the bank and fall under the bracket of 6-8, 12% of respondents i.

persons are neither satisfied nor dissatisfied and fall under the bracket of 4-6, 6% of respondents i.e. 3 persons are dissa

with assistance of the bank and fall under the bracket of 2-4 and 4% of respondents i.e. 2 persons are very dissatisfied w assistance rendered by the bank in the event of the loss of credit card and fall under the bracket of 1-2 against the scale

Response of the customers towards the financial loss on account of the loss of credit card, althou matter was immediately reported to the concerned bank authorities without any loss of time

6.27 The response of customers towards the matter no. of Category Yes No Percentage people 2% 98% 1 49

Figure 6.27 The response of customers towards the matter

80

Percentage

2%

yes no

98%

From 6.27 and figure 6.27 it can be seen that 2% of respondents i.e. 1 person suffered the financial loss on account of of credit card, while 98% of respondents i.e. 49 persons did not face such a situation.

Category in which respondents have availed the loan from HDFC bank

6.28 The category of loans availed by respondents no. of Category personal loan home loan car loan loan against property Percentage people 40% 26% 22% 12% 20 13 11 6

Figure 6.28 The category of loans availed by respondents

81

Percentage

12%

40% 22%

personal loan home loan car loan loan against property

26%

From 6.28 and figure 6.28 it can be seen that 40% of respondents i.e. 20 persons have availed personal loan, 26% of

respondents i.e. 13 persons have availed home loan, 22% of respondents i.e. 11 persons have availed car loan and 12% respondents i.e. 6 persons have availed loan against property.

Loan processing experience of respondents in HDFC bank

6.29 The level of satisfaction with respect to loan processing experience no. of Level of satisfaction Very satisfying Satisfying neither satisfying nor dissatisfying Dissatisfying Very dissatisfying 4-6 2-4 1-2 22% 14% 10% 11 7 5 Scale 8-10 6-8 Percentage people 22% 32% 11 16

Figure 6.26 The level of satisfaction with respect to loan processing experience

82

Percentage

10% 14%

very satisfying 8-10 22% satisfying 6-8 neither satisfying nor dissatisfying 4-6 dissatisfying 2-4

22%

32%

very dissatisfying 1-2

From 6.29 and figure 6.29 it can be seen that 22% of respondents i.e. 11 persons felt the loan processing experience ve

satisfying and fall under the bracket of 8-10 against the scale of 1-10, 32% of respondents i.e. 16 persons felt the exper

just satisfying and fall under the bracket of 6-8, 22% of respondents i.e. 11 persons felt the experience neither satisfyin

dissatisfying and fall under the bracket of 4-6, whereas 14% of respondents i.e. 7 persons felt the experience dissatisfyi

fall under the bracket of 2-4, while 10% of respondents i.e. 5 persons felt the loan processing experience very dissatisfy fall under the bracket of 1-2 against the scale of 1-10.

Time taken by the HDFC bank to process the loan

6.30 The time span with respect to processing of loan no. of Time span very quick Delayed very long Percentage people 24% 44% 32% 12 22 16

Figure 6.30 The time span with respect to processing of loan

83

Percentage

24% 32% very quick delayed very long

44%

From 6.27 and figure 6.27 it can be seen that 24% of respondents i.e. 12 persons felt that the time taken to process the the bank was very quick, whereas 44% of respondents i.e. 22 persons felt that the process was delayed, while 32% of respondents i.e. 16 persons felt that the time taken to process the loan was very long.

Response of customers with respect to difficulty faced by them in case of paper work for loan in bank

6.31 The customer responses with respect to the difficulty faced by them no. of Category Yes No Percentage people 12% 88% 6 44

Figure 6.31 The customer responses with respect to the difficulty faced by them

84

Percentage

12%

yes no

88%

From 6.31 and figure 6.31 it can be seen that 12% of respondents i.e. 6 persons found difficulty in case of paper work while 88% of respondents i.e. 44 persons did not find any difficulty.

Response of the respondents regarding the availability of loan money at the time of their require
6.32 The response of respondents with respect to availability of money as and when required no. of Category Yes No Percentage people 76% 24% 38 12

Figure 6.32 The response of respondents with respect to availability of money as and when required

85

Percentage

24%

yes no

76%

From 6.32 and figure 6.32 it can be seen that 76% of respondents i.e. 38 persons said that the loan money was availabl time of requirement, whereas 24% of respondents i.e. 12 persons said that the money was not available at the time of requirement.

Views of respondents towards the rate of interest charged by HDFC bank on loans
6.33 The level of satisfaction with respect to interest rate no. of Level of satisfaction very satisfying Satisfying Neither satisfying nor dissatisfying 1-4 20% 10 Scale 7-10 4-7 Percentage people 34% 46% 17 23

Figure 6.33 The level of satisfaction with respect to interest rate

86

Percentage

20% 34% very satisfying 7-10 satisfying 4-7 neither satisfying nor dissatisfying 1-4 46%

From 6.33 and figure 6.33 it can be seen that 34% of respondents i.e. 17 persons are very satisfied with the interest rat

charged by the bank and fall under the bracket of 7-10 against the scale of 1-10, whereas 46% of respondent i.e. 23 per

just satisfied with the interest rate of the bank and fall under the bracket of 4-7, while 20% of respondents i.e. 10 person

neither satisfied nor dissatisfied with the rate of interest charged by the bank and fall under the bracket of 1-4 against t of 1-10.

Note: The level of dissatisfaction is not mentioned here because customers always have other choices, if they do not fin of interest appropriate then they may switch to other banks. SWOT ANALYSIS In applying the SWOT analysis it is necessary to minimize or avoid both weaknesses and threats of HDFC bank. Weaknesses should be looked at in order to convert them into strength. Like wised, threat should be converted into opportunities. Lastly, strengths and opportunities should be matched to optimize the potential of HDFC bank.

Strength: Low average loan to value ratio & debt adverse nature of borrowers. Growth in urban market/ salaried class & Quality of underwriting. Strong Brand - customer base of over 2million. The bank has the power attorney of the client and executes on his/her behalf once it gets written instructions from its clients. It offers custodial services which will include services such as receiving dividend of shares and other entitlements such as buyback proposals. 87

Customers dont have to worry about tracking dividends of companies or subscribing to buybacks. No threshold limit for offering its services. Cash of Rs. 100000 delivered at your doorstep Offers free Gold International Debit card, a free International Titanium card or a free international Gold Credit card. It offers e-broking Free standing instructions available only in HDFC Bank. Avail of locker at just 50 % of the annual fee. Preferential pricing for loan against securities, home loans. As a preferred customer you are entitled to a waiver of up to Rs. 2000 per annum on a host of service charges like Demand Draft/ Managers Cheque charges Inter-branch funds charges Stop payment charges Cheque return/collection charges DD cancellation charges Hold mail charges Duplicate statement charges Certificate of balance charges Recovery of old records charges FIRC charges

. Weakness: Charges customers on the various services it offers. The bank does not charge any fixed fees, it earns commission on the products the customer buys. Cash withdrawal limit up to Rs. 25000/day. Door step banking available only twice a month and only in metros. Does not provide 24 hours banking transactions by phone. Does not provide 365 days of banking transactions Not so focusing more on rural areas.

Opportunity Growth in demand-driven by improved affordability 88

Rising disposable income Affordable interest rates Generally s property prices Fiscal incentives on both interest and principal repayments.

Increasing urbanization & Increased network of outlets. Can target to the small investors not only in urban areas but also to the rural area. Can Provide a zero balance savings account to the customers Can provide the interest on deposits as provided by the co-operatives Can trap the students segment by providing a very low AQB or Zero balance. HDFC Bank can have a professional savings account with the following benefits.

Free registration in reputed consultancies. Easy personal loan, car loans, to the account holder. A D-MAT account free with every current & savings accounts (without any registration fee and stamp fee) Free membership facility to the top rated club members in India.

Threats Competition from other banks is very high . Some banks provide 24 hour banking transaction over phone. Some banks provide transactions for 365 days. Less number of branches as compared to others. As third party cash deposits is not accepted there is a fear that HDFC bank may loose some customers.

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CHAPTER-7

CONCLUSION AND RECOMMENDATION

90

Conclusions
Analyzing the findings it can be said that good customer relationship raises awareness among the people. There are tough competitions and thus there exists a lot of room to improve so as to become the market leader from all aspects. The only thing is the making of and implementation of the proper strategy in the best effective way. By understanding the steps of competitors before they were implemented is the way lead to the market. The HDFC Bank believes in adopting and adhering to the best corporate governance practices and continuously benchmarking itself against each such practices in the industry. The Bank understands its responsibility towards its customers and strives hard to meet their expectations. Transparent disclosures are necessary for creating customer satisfaction. The cardinal principles such as independence, Accountability, responsibility, transparency, fair and timely disclosures, and credibility serve as the means for implementing the philosophy of corporate governance in letter and in spirit. The banks employees are very friendly among their coordinates and also to their customers. HDFC is focusing on building long term relationship with the customers as result of which most of the people perceive HDFC as one of the best banks in Delhi. The initiatives taken by HDFC in CRM have helped HDFC to achieve a great amount of success.

The SWOT analysis shows the competitive strategy of HDFC bank especially in widening its networks, continuous up gradation of technology for reduction in OCR and its specific geographical (Rural banking), demographical strategy will bring to serve as a best bank in India. The Competitor Analysis show that it has to focus more to increase its NIM. The capital adequacy ratios are very good relative to its competitors. The survey throws light on various Issues that the customer faces in the market.

RECOMMENDATIONS:

There should be more number of ATMs in the city.

91

More aggressive sale is needed for professors, lecturers, and staff members who the best customer of savings accounts. Ensure the best after sale services by replacing the faulty ones immediately after getting complain. A group promotional activity aiming, encouraging card holder to use their card to its fullest should be undertaken. The timings of the bank to be extended from 8a.m to 8p.m. With every purchase, card holders be awarded with some credit points and on the end of every quarter , special gifts should be given or discount offers on some items produced by some company can be given, which will be sponsored by the producer, the shopkeeper and the banker.

E-mails can be used effectively for disseminating information among customers. Since application of this is most cost effective, the organization can mail the required information to their customer. There should be no hidden charges and to be explained when demanded for. Customer satisfaction is the base for success of any business activity. The bank should continuously strive to provide a wide variety of alternative banking products and make amendments and improvement from time to time.

This study is an earnest effort to enhance the practical knowledge by measuring the customer satisfaction as well as contributing to the organizational efficiency by suggesting ways to manage and improve the same profitably in the highly competitive time to come.

ANNEXURE
BIBLIOGRAPHY
Books: Desai Vasant, Banks and Institutional Management, First Edition: 2006, Himalayan Publishing House, pp.347-358. JHA.S.M. BANK MARKETING, Millennium Edition 2000, Himalayan Publishing House, pp.276-286. Kotler Philip, Marketing Management, Twelfth Edition, Prentice- Hall of India Pvt. Limited, pp. 9-26. 92

 Srivastava P.K., Banking Theory and Practice Tenth Revised and Enlarged Edition, Himalayan Publishing House, pp.107-116.

Research papers and journal: Asher Mike, Measuring Customer Satisfaction (1989), The TQM Magazine, Vol. 1, Issue 2 Bargal Hitendra, Role of Service Marketing in Banking Sector (2008), Journal of Services Marketing, Vol. 6 Edward Manoj, George Babu P, Cognitive Dissonance and Purchase Involvement in the Consumer Behavior context (2007), Journal of Marketing Management, Vol. 8 Faulhaber Gerald R, Banking Markets: Productivity, Risk and Customer Satisfaction (1995), Emerald New Publishing House, vol.8 Hazra Sandip Ghosh, Srivastava Kailash B L, Impact of Service Quality on Customer Loyalty, Commitment and Trust in the Indian Banking Sector(2007), Journal of Marketing Management, Vol.8 Mengi Pooja, Satisfaction with Service Quality: An Empirical Study of Public and Private Sector Banks (2009), Journal of Management Research, Vol. 8 Mylonakis John, Customer Relationship Management Functions: A Survey of Greek Bank Customer Satisfaction Perceptions (2009), Journal of Bank Management, Vol. 8

Tripe David W L, The Relative Efficiency of Banks, Taking into Account a Customer Satisfaction Rating (20 Emerald New Publishing House, Vol.4

Web Sources: www.rbi.org.in www.moneycontrol.com www.nseindia.com www.hdf.com

Magazines and newspapers 93

Economic times Business world

QUESTIONNAIRE

Dear Respondents, I am a student of MBE. I m working on the project of Analysis of customer satisfaction with respect to selected banking services of HDFC bank. You are required to fill the questionnaire to enable, to undertake the study on the said project.

NAME:

AGE

18-23 24- 29 30- 35 35& above

Percentage:

15

20

30

35

MARITAL STATUS: Percentage:

Married

Unmarried

70

30

OCCUPATION:

Business Service Others 94

Percentage

32

44

24

Q1). For how long have you been associated with HDFC bank? a. 0-2yrs d. 6-8 yrs b. 2-4yrs e. 8 & above c. 4-6 yrs

Q2). Out of the four services which one(s) have you been using most frequently? a. saving a/c c. credit card b. ATM- cum debit card d. loans

Q3). How was your experience with HDFC bank services so far? (Scale 1:10) a. very satisfying(8-10) c. neither satisfying nor dissatisfying(4-6) e. very dissatisfying(1-2) b. satisfying(6-8) d. dissatisfying(2-4)

Q4). As a customer of HDFC bank how did you find the behavior of bank staff? (Scale 1:10) a. very satisfying(8-10) c. neither satisfying nor dissatisfying(4-6) e. very dissatisfying(1-2) b. satisfying(6-8) d. dissatisfying(2-4)

Q5).How would you rate HDFC bank vis--vis other Indian private banks? (Scale 1:10) a. very satisfying(8-10) c. neither satisfying nor dissatisfying(4-6) e. very dissatisfying(1-2) SAVINGS ACCOUNT Q6). How was the experience at the time of opening a saving account in HDFC bank? a. very convenient b. convenient c. inconvenient b. satisfying(6-8) d. dissatisfying(2-4)

Q7). How often do you use your account in HDFC? a. once a week c. once a month b. twice a week d. any other

Q8).How do you operate the saving account in HDFC bank? 95

a. through ATM- cum debit card c. by visiting bank

b. through cheque

Q9). How much time does it take while depositing cash in your saving bank account in HDFC? a. up to 5 mins. c. more than 10 mins. Q10). How much time does it take to encash your cheque from saving account in HDFC bank? a. up to 5 mins. c. more than 10 mins. b. up to 10 mins. b. up to 10 mins.

Q11). HDFC bank issues account statements instead of conventional pass books, is this system: (Scale 1:10) a. very satisfying(8-10) c. neither satisfying nor dissatisfying(4-6) e. very dissatisfying(1-2) b. satisfying(6-8) d. dissatisfying(2-4)

Q12). To maintain saving bank account in HDFC bank, the minimum balance required is Rs. 5000. Are you satisfied with this lower limit? a. yes b. no

ATM Q13). How do you find the ATM facility of HDFC bank?

a. very convenient c. inconvenient

b. convenient

Q14). Is the HDFC ATM outlet near to your residence? a. yes b. no

Q15). Was there an occasion when you found the HDFC ATM out of order? a. yes b. no

Q16). When you found that the HDFC ATM is out of order did you use ATMs of other banks? a. yes b. no

96

Q17). How many times did it happen that you had to use ATMs of other banks? a.1-5 times c. 10 & above b. 5-10 times

Q18). Did you happen have withdrawn any fake note(s) along with legal currency from the ATM of HDFC? a. yes b. no

CREDIT CARDS Q19). How much time did it take to receive your credit card after applying for it to the HDFC? a. one week c. more than two weeks b. two weeks

Q20). What type of credit cards do you use? a. international silver credit card c. titanium credit card b. gold credit card c. value plus credit card

Q21). How often do you use your credit card? a. weekly c. any other b. monthly

Q22). Rate your experience regarding the facilities of credit card offered by HDFC bank? (Scale1:10) a. very satisfying(8-10) c. neither satisfying nor dissatisfying(4-6) b. satisfying(6-8) d. dissatisfying(2-4) (Scale 1:10)

Q23). Rate the assistance rendered by the HDFC bank in the event of the loss of credit card a. very satisfying(8-10) c. neither satisfying nor dissatisfying(4-6) e. very dissatisfying(1-2) b. satisfying(6-8) d. dissatisfying(2-4)

Q24). Did you suffer any financial loss on account of the loss of your credit card, although the matter was immediately reported to the concerned bank authorities without any loss of time? a. yes b. no

LOAN Q25).In what category have you availed the loan? 97

a. personal loan c. car loan

b. home loan d. loan against property

Q26). How would you rate the loan processing experience of HDFC bank? (Scale 1:10) a. very satisfying(8-10) c. neither satisfying nor dissatisfying(4-6) e. very dissatisfying(1-2) b. satisfying(6-8) d. dissatisfying(2-4)

Q27).What time did the people of HDFC bank take to process the loan? a. very quick c. very long b. delayed

Q28). Did you find any difficulty in case of paper work for loan in HDFC? a. yes b. no

Q29). Was the loan money available as and when required? a. yes b. no

Q30). What do you say about the rate of interest charged by HDFC bank? (Scale 1:10) a. very satisfying(7-10) c. neither satisfying nor dissatisfying(1-4) b. satisfying(4-7)

98