Conclusion

1. The interest expense is more, compared to operating expenses in the HDFC. Out of the total income of most of the revenue has been expanded as interest expense. Compared to HDFC Bank's interest is more HDFC. The reason for this is that as HDFC is a public bank pays more interest on deposits. 2. Measure that public banks have been asked to finance the weaker sections of society, the development of priority sectors and to provide credit under DRI scheme. Then, the priority fact a total progress is longer in the case of HDFC relative to banking HDFC. 3. In the case of profitability before the performance of HDFC Bank is better compared to the HDFC. 4. Return on assets is the fourth in HDFC bank. For large banks in the main rule of the ratio is greater than 1%. Until the bank performs much better than the norm. So these reasons mentioned above shows the evolution of both banks HDFC Bank and Bank HDFC.

Suggestion

Thus it is evident that both HDFC bank have tried to improve the upon their performance in terms of growth, profitability and productivity. However the performance of HDFC Bank on an average has been much impressive as compared to HDFC. This may be due to aggressive lending drives carried by bank, autonomy available to the bank managers and selection of suitable sites for opening new branches. Further private sector banks are more innovative in adopting latest technological changes in the field of banking. In view of conclusion following suggestions are forwarded to improve upon the performance of banks.

1. Banking is a service industry and marketing of such services depends upon selection of suitable marketing mix. Among the various elements of mix people (employees) is an essential element. Since the banking product is meant for human beings (customers), a proper dealing with them by the staff is a key to success. For this purpose there is need for having proper personnel policies which ensures placement of fully trained and motivated staff having specialized skill in dealing with people. It has been seen that private sector bank laid special stress on training of employees in such respects. However the behavior of public sector employees is generally less cordial and they are less trained in performing their jobs. Hence it is suggested that banks should follow proper personnel policies which lay stress on training of employees

2. Banking industry is changing very fast keeping in pace with changing requirement of the people. Banks are trying to formulate and provide customized products to their customers. This in turn requires a lot of autonomy available to the bank managers. It has been observed that HDFC bank to some extent have been able to provide autonomy to their managers. However HDFC proved unsuitable to meet their requirements. Thus to retain and grow existing strength of customers it becomes necessary that managers working in HDFC are also given sufficient powers to bring flexibility in the banking operations. This will help the bank in meeting competition from private sector bank more effectively.

3. Traditional banking and modern banking are two different extremes. Hence the banking processes planned for providing traditional services are ineffective in many cases for providing modern services to the customers. Traditional processes are sometimes unnecessary and time consuming thus harassing the customer and leading to unnecessary delay in operations. This requires a proper study of organizational methods to make the office processes, customer friendly and effective. Thus it is suggested that both the banks should to take the benefit of mechanization and adopt the customer friendly simplified process to bring efficiency and customer satisfaction.

4. Mobilizing deposits and providing advances are the most important activities of any bank. The profitability of the bank depends to a great extent on the effectiveness of its deposits mobilization accompanied by aggressive credit deployment. It has been observed that HDFC bank have been more aggressive in their credit deployment efforts. Sometimes they approach the customers at their residence, contact them on telephones to present a product which meet their specific requirements. All this has lead to higher productivity and profitability of such banks. So it is suggested that HDFC should also adopt this marketing strategy successfully to improve upon their profitability and productivity.

5. Customer satisfaction is the base for the success of any business activity. However customers requirements and expectations are varied and differ from time to time. So the banks should continuously strive to provide a wide variety of alternative products and make amendments or improvements in them from time to time. Further formation of grievance handling committee and regular contact with customers can help the banks in improving customer satisfaction and in turn improving profitability and productivity of banks.

6. Bank deal in money which has to be properly invested to earn profits. These need a well trained team work which is supported by regular supply of information with regard to market, economic policies and legal aspects etc. The investment committee of the bank should ensure good returns to the bank at desirable level of risk.