PROJECT REPORT ON - STUDY OF CUSTOMER

SATISFICATION TOWARDS HDFC BANK

Bachelor of Commerce (Banking & Insurance)

Semester (V)
(2023-2024)

Submitted By
NAME – RAJ PATEL
ROLL NUMBER – A031

Project Guide
PROF.VINAY JADAV

Mithibai College of Arts, Chauhan Institute of

Science & Amrutben Jivanlal College of
Commerce and Economics

Bhaktivedanta Swami Marg, Gulmohar Road,

SuvarnaNagar, Vile Parle (W), Mumbai,
Maharashtra 400056
1
“STUDY OF CUSTOMER SATISFICATION TOWARDS
HDFC BANK”

Bachelor of Commerce (Banking & Insurance)

Semester (V)

Submitted
In Partial Fulfillment of the requirements
For the Award of Degree of
Bachelor of Commerce (Banking & Insurance)

By:
Name -Raj Patel
Roll No.: A031

Mithibai College of Arts, Chauhan Institute of Science &

Amrutben Jivanlal College of Commerce and Economics

Bhaktivedanta Swami Marg, Gulmohar Road, Suvarna

Nagar, Vile Parle (W), Mumbai, Maharashtra 400056

2
 ACKNOWLEDGEMENT

To list who all have helped me is difficult because they

are so numerous, and the depth is so enormous.

I would like to acknowledge the following as being

idealistic channels and fresh dimensions in the
completion of this project.

I take this opportunity to thank Mithibai College for

giving me chance to do this project.

I would like to thank my Principal, Dr. Krutika Desai

for providing the necessary facilities required for
completion of this project.

I take this opportunity to thank our Head of

Department Dr. Jaison Thomas, for his moral support
and guidance.

I would also like to express my sincere gratitude

towards my project guide Asst. Prof. Vinay Jadav
whose guidance and care made the project successful.

Lastly, I would like to thank every person who directly

or indirectly helped me in the completion of the project
especially my Parents and Peers who supported me
throughout my project.

3
 DECLARATION

I, RAJ PATEL the student of T.Y.B.B.I. Semester V (2023-

2024) hereby declare that I have completed the project
on STUDY OF CUSTOMER SATISFICATION TOWARDS
HDFC BANK.

The information submitted is true and original to the

best of my knowledge.

(Raj Patel)
Roll No.A031

Mithibai College of Arts, Chauhan Institute of Science &

Amrutben Jivanlal College of Commerce and Economics

Bhaktivedanta Swami Marg, Gulmohar Road, Suvarna

Nagar, Vile Parle (W), Mumbai, Maharashtra 400056

4
 CERTIFICATE

This is to certify that RAJ PATEL, Roll No: A031 of Third Year
B.B.I., Semester V (2023-2024) has successfully completed the
project on

STUDY OF CUSTOMER SATISFICATION TOWARDS HDFC BANK

Under the guidance of Asst. Prof. VINAY JADAV

Project Guide/ Internal Examiner Principal

(Asst. Prof. VINAY JADAV) (Dr. Krutika Desai)

External Examiner

5
 INDEX

SR NO. TOPIC PG NO.

1 INTRODUCTION 7

2 SWOT ANALYSIS 26

3 OBJECTIVE OF STUDY 27

4 REVIEW OF LITERATURE 28

5 RESEARCH METHODOLOGY 30

6 DATA ANALYSIS 32

7 SUGGESTIONS AND RECOMMENDATIONS 42

8 REFERENCE 43

9 QUESTIONNAIRE 45

6
 BANKING INDUSTRY

Introduction to Indian Banking System

History of Banking In India

The Indian banking system is extremely important to the country's

economy and must be effective and flexible enough to keep up with new
technology and changing conditions. The Indian banking industry has
made significant strides over the past three decades, most notably
expanding its reach to include even the most rural regions of the country.
The economic growth of India has been profoundly influenced by this
expansion.

A pivotal moment in the history of Indian banking was the government's

policy of nationalization in 1969, which resulted in the takeover of 14
major private banks. Prior to this development, banking operations were
often lengthy and forced clients to wait in line at bank counters for routine
tasks like getting drafts or making a withdrawal. Money transfers between
bank branches, which once required two days, are now accomplished with
the same speed and ease as buying a pizza or using instant messaging.

Indian banking began in 1786 with the establishment of the first bank,
which was conservative by character. Since then, there have been three
main periods in the development of the Indian financial sector.

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1. Initial Phase (1786–1969): Indian banks performed prudently and
within a constrained scope at this time.

2. "Nationalization of Indian Banks (1969–1991”)" The government's

choice to nationalize 14 large private banks brought about a profound
change in the banking industry. Although there were improvements in the
financial industry at this time, conservatism remained still present.

3. New Phase (Since 1991): With the introduction of financial and banking
sector reforms in 1991, the Indian banking system entered a new era. The
banking industry underwent a wave of transformation, modernisation,
and liberalization as a result of these reforms, allowing it to adapt to the
changing economic environment.

Phase I:

The General Bank of India was founded in 1786, and the Bank of
Hindustan and Bengal Bank soon followed. This was Phase I in the
development of the Indian banking sector. After that, the East India
Company established three autonomous institutions that came to be
known as Presidency Banks: HDFC Bank (1809), Bank of Bombay (1840),
and Bank of Madras (1843). These three banks united in 1920 to become
the Imperial Bank of India, which at first operated as a privately held
organization with a mostly European shareholder base. Allahabad Bank
was founded in 1865 and is remarkable for being the first bank owned
solely by Indians. The Punjab National Bank Ltd. was founded in 1894 and
has its main office in Lahore. Between 1906 and 1913, a number of banks

8
were established, including the Bank of India, Central Bank of India, Bank
of Baroda, Canara Bank, Indian Bank, and Bank of Mysore. In 1935, the
Reserve Bank of India was founded. Between 1913 and 1948, there were
sporadic bank collapses during this early period of slow banking
expansion. The bulk of the roughly 1100 banks that were operating at the
time were tiny. The Government of India passed The Banking Companies
Act, 1949, subsequently renamed the Banking Regulation Act, 1949, by
Act No. 23 of 1965, in order to improve the operation and regulation of
commercial banks. As the central banking authority, the Reserve Bank of
India has been given broad responsibility to regulate banking operations.
During this time, there was not a lot of public faith in banks, which made
deposit mobilization difficult. The Postal Department's savings bank
facility was seen as safer, and money was mostly directed toward dealers.

Phase II:

After achieving independence, the Indian government began Phase II by

making substantial changes to the banking industry. The Imperial Bank of
India, which had a broad network of financial services, notably in rural
and semi-urban regions, was nationalized in 1955. Additionally, the State
Bank of India was founded to manage financial operations for the Union
and State and operate as the RBI's chief agent. Governments across the
nation. Further In 1960, seven banks that were State Bank of India
subsidiaries were nationalized when the government took control of
them. This action was taken to tighten control and regulation over the
Indian banking industry.

A large nationalization effort was started in July 1969 under the direction
of Mrs. Indira Gandhi, who was India's prime minister at the time. 14
significant commercial banks in the nation were nationalized as a result of
this action. After that, seven additional banks were taken under
government ownership as part of the second round of nationalization in
1980, thus giving the government control over 80% of India's banking
industry.

9
The Indian government took a number of important measures to control
financial institutions in the nation:

1. The Banking Regulation Act was passed in 1949.

2. The State Bank of India was made a national bank in 1955.

3. The HDFC Bank's subsidiaries were nationalized in 1959.

4. Bank savings were included to insurance coverage in 1961.

5. Fourteen big banks were nationalized in 1969.

6. The Credit Guarantee Corporation was founded in 1971.

7. Regional Rural Banks were established in 1975.

8. Seven banks with balances of more than 200 crores were nationalized
in 1980.

Following the nationalization of banks, deposits at the public sector

banks' branches in India increased by an impressive 800%, while
advances experienced a significant growth of 11,000%. The public now
has a high degree of faith and trust in the sustainability and stability of
these financial institutions as a result of this shift toward government
control.

Phase III :

A wide range of new goods and services, greatly upgrading the banking
industry, as a result of India's banking reforms. A group led by M.
Narasimhan was created in 1991 with the goal of promoting the
liberalization of banking operations.

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As a result, the nation has seen an increase in the number of international
banks and their ATM networks, all of which are working hard to offer
consumers top-notch service. The entire banking system is now more
streamlined and easy thanks to innovations like phone banking and online
banking. Time is now valued more highly than money and is thus
prioritized at this stage.

India's financial system has shown to be remarkably resilient, resisting

crises brought on by external macroeconomic shocks, as was the case in
other East Asian nations. A flexible currency rate system, sizable foreign
reserves, a capital account that is largely convertible, and banks and their
clients' low exposure to foreign exchange risks are all factors contributing
to this resilience.

THE BANKING SYSTEM IN INDIA

Government-owned (nationalized) banks, commercial banks, and

specialized financial institutions make up the bulk of the Indian banking
sector. The major organization in charge of keeping an eye on the system
and correcting any flaws or problems is the Reserve Bank of India. Public
sector banks since the nationalization of banks in 1969 also known as
nationalized banks, have earned much notoriety and have advanced
remarkably. These often more leisurely public sector banks have been
forced to change their conventional slow-moving ways in order to
prioritize client service. Players in the banking and financial business at
all levels have been prompted to review their current offers as a result of
the advent of online goods and services. Indian banks were partly
protected from the Asian currency crisis because to their conservative
banking procedures. In comparison to banks in other Asian nations like
Hong Kong, Singapore, and the Philippines, which struggle with serious

11
problems including sizable Non-Performing Assets (NPAs) and payment
failures, Indian banks are now valued higher. Cooperative banks, which
are renowned for their agility and effective branch networks, concentrate
mostly on high-revenue specialist retail markets.

In order to meet the complex difficulties of globalization, the Indian

banking industry has now adjusted to the competitive dynamics of the
"new" Indian market. Utilizing IT solutions allows banks to be seen as
progressive and proactive, capable of addressing the wide range of
demands of their large client base. Private banks have embraced this
trend quickly and are rethinking their approaches while using the internet
as a medium. Traditional marketing strategies from the real world are still
just as relevant in the new and challenging environment of the internet.

The Indian banking industry has undergone a significant metamorphosis,

evolving from a slow commercial institution to a very proactive and
dynamic corporation. Liberalization and economic reforms have played a
significant role in this change by enabling banks to go beyond
conventional lending and borrowing for new business prospects. The
banking industry in India is highly fragmented, with 30 financial
institutions accounting for 60% of advances and close to 50% of deposits.
Due to their wide reach and capacity to raise deposits, public sector
banks, especially those owned by the government, continue to be
important lenders in the economy.

Nationalized banks, private banks, and specialized banking institutions

can be used to characterize the Indian banking industry generally. The
Reserve Bank of India is crucial to the system's oversight. Government-
owned nationalized banks continue to rule the Indian banking industry.
The public sector accounts for 223 of India's 274 commercial banks, while
the private sector accounts for 51. Additionally, 24 international banks
that have operations in the nation make up the private banking scene.
Cooperatives and rural banks are examples of specialized financial

12
entities that concentrate on topics like agriculture and rural development
Due to their ownership and lending structure, these cooperative banks
enjoy different tax perks, unlike commercial banks, which results in
cheaper operating expenses. They also do not base their lending decisions
on prime lending rates. They are able to offer savings deposits at a little
higher interest rate as a result. In order to remain competitive with public
sector and private banks, many cooperative banks have branched into
specialized fields including truck financing, home loans, and auto
financing. They have also made significant investments in information
technology to provide its customers cutting-edge computerized banking
services.

THE TYPES OF BANK IN INDIA

The Reserve Bank of India is the country's central bank; it is wholly

owned by the government and is governed by a central board whose
governor is chosen by the Central Government. All banks operating in
India must abide by rules established by the Reserve Bank of India.

The following segments make up India's cooperative sector, which

benefits rural communities especially.

State cooperative banks and central cooperative banks are two examples.

Society for Primary Agriculture Credit

India also has various development banks and financial institutions,

including:

- IFCI

- IDBI

- ICICI

- IIBI

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- SCICI Ltd.

- NABARD

- Export-Import Bank of India

- National Housing Bank

- Small Industries Development Bank of India

- North Eastern Development Finance Corporation

Private sector banks in India encompass several types:

a. Old generation private banks

b. New generation private banks

c. Foreign banks operating in India

d. Scheduled cooperative banks

e. Non-scheduled banks

Some prominent private sector banks in India include:

1. HDFC Bank

2. ICICI Bank

3. Federal Bank

4. ING Vysya Bank

5. Axis Bank (formerly UTI Bank)

6. Yes Bank

7. Bank of Rajasthan

8. Bharat Overseas Bank

9. Catholic Syrian Bank

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10. Centurion Bank of Punjab

11. City Union Bank

12. Development Credit Bank

13. Dhanalakshmi Bank

14. Ganesh Bank of Kurundwad

15. IndusInd Bank, among others.

The Reserve Bank of India (RBI) refused to provide new private banks
operating licenses after the nationalization of 14 commercial banks in
1969, despite the fact that there were no legislative restrictions on the
establishment of private sector banks. However, the 1991 Narsimha
committee report acknowledged the possibility of giving private sector
banks a bigger role. The RBI released recommendations in January 1993
to let private sector banks enter the banking system because it recognized
the need for more competition to raise the productivity and efficiency of
the banking system.

The following essential ideas were part of these rules:

1. The Banking rules Act of 1949, The Reserve Bank of India Act of 1934,
and other pertinent legislative rules will regulate the banks.

2. In India, private sector banks had to register as public limited

corporations.

3. The RBI had the power to issue a banking license.

4. These banks were required to list their shares on stock markets.

5. Banks wishing to locate their headquarters in areas where no other

bank already had one were given preference.

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6. The aggregate voting rights of each shareholder were limited to a
maximum of 1%.

7. Those who already served as directors of a banking organization were

ineligible to do so for the new bank.

8. The RBI-mandated prudential standards for banking operations,

accounting principles, and other rules were to be followed by banks. One
billion rupees in minimum paid-up share capital was one of these
requirements.

- The RBI's assessment of the contributions of promoters.

- A minimum of 8% of risk-weighted assets must be in capital.

- Restrictions on exposure to individual and borrower group borrowers.

- Lending requirements for key sectors.

- Export credit policies.

- Loan policies that adhere to the RBI's broad guidelines.

9. Banks were permitted to operate branches everywhere in the nation

after they complied with the capital adequacy and prudential accounting
standards.

10. Banks were prohibited from investing more than 20% of their own
paid-up capital and reserves in subsidiaries, mutual funds, and portfolio
investments in other businesses.

11. Banks were expected to make use of contemporary infrastructural

facilities for telecommunications, office equipment, and other technical
components.

These regulations made it possible for new private sector banks to

operate in India. These banks have taken the initiative to grow their
operations, post bigger profits, and take use of their competent
employees. They have done better than other financial organizations,
including international banks, in several sectors.

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 HDFC BANK

With one simple and obvious goal in mind when it started its journey in
1995: to become a "Exceptional Indian Bank on a Global Scale." They
understood that reaching this objective needed a steadfast dedication to
provide top-notch goods and services.

The Mumbai-based HDFC Bank has built a phenomenal network of more

than 495 branches spread throughout 218 cities in India. This enormous
branch network is connected to the internet in real-time. Additionally, the
bank offers Telephone Banking services to customers in more than 120
locations. The bank's expansion plan is specifically designed to nurture a
strong retail client base for both deposits and loan products as well as to
assure a presence in key industrial and commercial centres, harmonizing
with its corporate customer base.

In addition, HDFC Bank is essential as a clearing and settlement bank for

major stock exchanges. As a result, it has strategically placed branches in
regions where the NSE/BSE (National Stock Exchange/Bombay Stock
Exchange) retain a substantial and active member base.

With a paid-up capital of Rs. 309.9 crore (Rs. 3.09 billion), HDFC Bank has
an authorized capital of Rs. 450 crore (Rs. 4.5 billion). Approximately
19.5% of the bank's stock is controlled by the ADS Depository, with a
sizeable 22.2% holding held by the HDFC Group. To build a top-tier
banking infrastructure, HDFC Bank has made significant investments in
obtaining cutting-edge international technology.

The founding of HDFC Bank was a crucial turning point in Indian banking
since it brought the idea of limited liability joint-stock banking to the
nation. Additionally, the bank enjoyed the extraordinary right of issuing
notes that could be used to pay public taxes in a certain region. The Banks
of Bombay and Madras, two of HDFC Bank's sister institutions, also valued
this note-issuing ability. It increased the capital of the banks without

17
requiring interest payments to the owners. Furthermore, the notion of
deposit banking, in which banks took funds for customer investments or
safekeeping, was novel.. At the time, these behaviors were not common in
the majority of India. However, for a long time, especially before the
presidency gave banks the authority to create notes, bank notes and
government balances made up the majority of these institutions'
investable resources.

Following the Reserve Bank of India's approval for the formation of

private-sector banks, HDFC Bank was founded in August 1995 as one of
India's first new-generation, technologically advanced commercial banks.
The renowned home financing business home Development financing
Corporation Limited, which was founded in 1977, promoted the bank.

The HDFC Bank recorded a substantial 30.8% rise in net profit for the
fiscal year that ended on March 31, 2006, totaling Rs 870.8 crores.

Branch System

In 263 locations across India as of 2007, HDFC Bank had a network of 583
branches, all of which were seamlessly connected in real-time online
mode. The bank serves a variety of customer groups, including
individuals, corporations, trusts, governments, partnerships, financial
institutions, mutual funds, and insurance companies, by providing a
comprehensive range of cutting-edge products and services. Additionally,
HDFC Bank has a network of approximately 1471 ATMs, and in the
upcoming months, there are plans to significantly increase both the
number of branches and ATMs.

Recognition

HDFC Bank has received recognition, honors, and awards from several
organizations throughout the course of its ten years of existence,
including: - Best Domestic Bank in India at The Asset Triple A Country
Awards for 2005, 2004, and 2003.

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- The "Company of the Year" Award given at the 2004–2005 The
Economic Times Awards for Corporate Excellence.

– Best Domestic Commercial Bank and Best Cash Management Bank for
India in 2005, respectively, from Asiamoney.

- India's 2004 recipient of the Asian Banker Excellence in Retail Banking

Risk Management Award.

As the "Best Bank - India" in 2005, the "Best Domestic Commercial Bank -
India" in 1999, 2000, and 2001, and the "Best Local Bank - India" in 2002
and 2003, respectively, HDFC Bank has received recognition from Finance
Asia.

- HDFC Bank was crowned the "Best Bank in India" by Business Today in
2003 and 2004.

- As part of The Business World Most Respected Company Awards 2004,

HDFC Bank was named "one of India's Most Respected Companies" by
Business World.

- When compiling its list of the "Best under a Billion" in 2004, Forbes
Global named HDFC Bank as one of the top 100 smaller-sized businesses
in Asia/Pacific and Europe.

These honors and recognitions have been bestowed upon HDFC Bank in
recognition of its excellent contributions to the banking industry and
dedication to offering its clients the highest caliber financial services.

For its exceptional performance in the banking industry, HDFC Bank has
won various accolades and honors. As part of the Asian Banker Awards in
2003, it received the "Operational Excellence in Retail Financial Services -
India" award. In its 2003 lists of the "Best Under a Billion" and "200 Best
Small Companies for 2003," Forbes Global also honored HDFC Bank. The
FE-Ernst & Young Best Banks Survey 2003 awarded HDFC Bank the

19
distinction of being the "Best New Private Sector Bank 2003" by The
Financial Express.

For the year 2003, HDFC Bank received the accolade of "Best Bank in the
Private Sector" from Outlook Money. At the 2003 IT Users Awards, HDFC
Bank was named the "Best IT User in Banking" by NASSCOM and
economictimes.com. Aside from that, HDFC Bank received other honors
from Euromoney magazine, including "Best Bank - India" in 1999, "Best
Domestic Bank" in India in 2000, and "Best Bank in India" in 2001 and
2002. Additionally, Asiamoney magazine awarded it "Best Commercial
Bank in India 2002."

The "Computerworld Honors Laureate" award and the 21st Century

Achievement Award for the area of Finance, Insurance, & Real Estate were
given to HDFC Bank in 2002 for its creative use of information technology
by Computerworld, Inc., USA. In 2000, HDFC Bank was named "India's
Best Bank" by Business India. Additionally, HDFC Bank was listed by
Forbes Global as one of the "20 for 2001" top small businesses worldwide
and among "The 300 Best Small Companies" in the world in 2000.

The Reserve Bank of India's (RBI) 'in principle' clearance to create a bank
in the private sector in 1994 marked the beginning of HDFC Bank's
journey. Under the name "HDFC Bank Limited," the bank was formally
established in August 1994, with its registered office in Mumbai, India. In
January 1995, HDFC Bank started conducting business as a Scheduled
Commercial Bank.

The primary goal of the bank is to establish itself as a top-tier Indian bank
by establishing solid clientele across several industries, catering to both
retail and wholesale clientele, and attaining sustainable profitability while
upholding the highest ethical, professional, and regulatory standards.
Operational Excellence, Customer Focus, Product Leadership, and People
are the four guiding principles of HDFC Bank.

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By having a network of 684 branches in 316 locations around India as of
December 31, 2006, and more than 1663 ATMs, HDFC Bank cemented its
place as a major participant in the Indian banking sector.

Personal banking, NRI banking, and wholesale banking are just a few of
the financial services provided by HDFC Bank. Loans (personal loans,
home loans, educational loans, etc.), credit, debit, and prepaid cards,
mutual funds, insurance, bonds, financial planning, knowledge center,
stocks & derivatives, and payment services are just a few of the goods and
services offered by HDFC Bank. To provide its clients with a smooth and
effective banking experience, HDFC Bank also handles payments, cash
transfers, and other financial operations.

In order to increase client convenience, HDFC Bank offers two customer

programs:

- The HDFC Bank Preferred Program

HDFC Bank Classic Program

Additionally, the bank offers Private Banking services for high net worth
individuals and organizations.

Quick, affordable, and convenient fund transfers and remittances are

made possible by HDFC Bank to India

In the area of corporate banking, HDFC Bank specializes in offering its

corporate clients in India a variety of commercial, transactional, and
electronic banking solutions.

Between the government and its clients, HDFC Bank acts as a crucial
middleman by providing a variety of crucial services.

Highlights of Performance for the Year Ended March 31, 2007:

- Total income was Rs. 8,405.3 crores, up from Rs. 5,599.3 crores the year
before.

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- Net revenues: Rs. 5,225.8 crores (a 42.4% increase over the prior year);
net interest income plus other income.

- Net Profit: 1,141.5 crores rupees (up 31.1% from the prior year)

Major Organizational Information:

Mr. Aditya Puri serves as the company's managing director. The

company's registered address is HDFC Bank House, Senapati Bapat Marg,
Lower Parel, Mumbai, India.

Merger of HDFC Bank and Centurion Bank of Punjab: At a share swap ratio
of 1:29, HDFC Bank and Centurion Bank of Punjab merged. With 1,148
branches across the country, the merged company has the greatest
national branch network among private sector banks. It also has a sizable
deposit base of over Rs. 1,200 billion and net advances of about Rs. 850
billion. The financial sheet of the combined company reaches Rs. 1,500
billion.

To preserve its percentage interest in the combined company, HDFC

Bank's Board contemplated making a preferential offer to its promoter,
Housing Development Finance Corporation (HDFC). Additionally, Mr.
Shailendra Bhandari was requested to join the Board as Executive
Director, and Mr. Rana Talwar was granted a position as a non-executive
director.

Distribution Network:

With its main office in Mumbai, HDFC Bank has a vast network of more
than 684 branches in 316 Indian cities, all of which are linked up online in
real-time.

- Over 120 sites offer telephone banking services to their clients.

22
In order to serve corporate clients and develop a strong retail customer
base for deposits and loans, the bank's development plan intends to have
a presence in significant industrial and commercial areas.

- HDFC Bank has locations where the NSE and BSE stock exchanges have
sizable and vibrant member bases.

- The bank has more than 1,740 networked ATMs that are open to users of
Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus, and American
Express Credit/Charge cards both domestically and abroad.

Technology and automation are priorities for HDFC Bank, and all
branches have internet access for quick money transactions. To build a
top-notch financial infrastructure, it has made major investments in
cutting-edge technologies.

The bank uses software from i-flex Solutions Ltd., namely Flexcube for
corporate banking and Finware for retail banking. These solutions are
adaptable, open, and web-based.

To obtain a competitive edge and increase its market share across a range
of industry sectors, HDFC Bank is dedicated to utilizing its position in the
market, industry knowledge, and technology.

AWARDS

Awards and Recognitions:

'Indian of the Year (Business)' on CNN-IBN in 2008.

23
2. "Best IT Adoption in the Banking Sector," winner of the 2008 Nasscom
IT User Award

3. "Best Bank 2008" according to Business India

4. Forbes Asia: Named one of Asia Pacific's "Fab 50" firms.

5. Best Retail Bank Honored by Asian Banker Excellence in Retail

Financial Services 2008

6. Asiamoney: Awarded Best Local Cash Management Bank by Corporate

Voters.

7. Security Strategist Award 2008 from Microsoft and Indian Express

Group

8. World Trade Center Award of Honor: Awarded for exceptional service

to international trade

9. One of India's "Most Innovative Companies" according to a Business

Today-Monitor Group survey.

10. Best Bank Award in the Private Sector: Awarded by Financial Express-
Ernst & Young.

11. Asia Pacific Regional Awards for Global HR Excellence 'Employer

Brand of the Year 2007-2008' Award (First Runner-up) and several more
awards from HRM Congress

12. The 'Best Bank' Award from Business Today

2007:

1. "Corporate Best Bank" Award, given by Dun & Bradstreet and American
Express in 2007.

2. The 'Best Corporate Social Responsibility Practice' Award was

presented at the 2007 Bombay Stock Exchange and Nasscom Foundation
Business for Social Responsibility Awards.

3. The Best Bank Award in the Private Sector was given by Outlook Money
and NDTV Profit.

24
 4. Indian bank named the best retail bank at the Asian Banker Excellence
in Retail Financial Services Awards

5. Asian Banker: India's Leadership Achievement Award went to

Managing Director Aditya Puri.

PRODUCT AND SERVICE PROVIDED BY HDFC BANK

Banking Services Offered:

 Savings Accounts:
 The following savings accounts are available: Regular Savings Account,
Savings Plus Account, Savings Max Account, No Frills Account, Retail Trust
Account, and Salary Accounts (Payroll Classic, Regular, and Premium).
 - Family Savings Group - Pension Savings Bank Account - Kid's Advantage
Account - Defense Salary Account
 Current Accounts:
 - Trade Current Account, Premium Current Account, Regular Current Account,
Plus Current Account, and Reimbursement Domestic Account - Current Account -
RFC
 Fixed Deposits:
 Super Saver Account, Regular Fixed Deposit, and Sweep-in Account
 Loans:
 Personal loans, home loans, two-wheeler loans, new car loans, used car
loans, and overdrafts against automobiles are all available.
 Express Loans, Loans Against Securities, Loans for Education, Loans for Gold
 Cards:
 - Credit Cards (Platinum Credit Card, Platinum Plus Credit Card,
and Silver Credit Card)
 – Debit Cards (Easy Shop International Debit Card, Easy Shop
Gold Debit Card, and Easy Shop International Business Debit
Card)

25
  Access Your Bank:

- Phone banking, ATMs, mobile banking, and the internet

26
 SWOT ANALYSIS

 The following:

1. The best product approach for the intended markets.

2. Superior customer service in comparison to rivals.

3. A powerful and admirable brand reputation.

4. Extremely satisfied customers.
5. Known as a top-notch workplace.
6. Quick reaction times and efficient and effective services.
7. A dedicated team determined to staying in the sector for the long haul.

 Weaknesses:

1. Customer service representatives might need further training

 Opportunities:

1. Expected favorable profit margins.

2. Possibility of worldwide business expansion.

3. Possibility to bargain better client agreements

 Threats:

1. The potential effects of new law.

2. The operations carry a high level of risk.

3. There is fierce rivalry in the sector.

4. Rural locations may have poor infrastructure, which might deter

investment

27
 OBJECTIVES OF THE STUDY

1. Compare consumer preferences for banks in the public and

private sectors.

2. Examine the elements that have the biggest impact on

clients' decisions about banks.

3. Compare and contrast the services that these institutions

provide.

4. Increase public knowledge of the bank's array of services.

28
 LITERATURE REVIEW

1. Customer satisfaction metrics were sought for in a research by Denise

K. Conroy titled "Customer Satisfaction Measures in the Public Sector:
What Do They Tell Us?" He emphasized a number of variables that
determine how results should be interpreted, including customer
characteristics, service delivery, service quality, and the presence of
consumer sovereignty in the public sector. This study focused on the
difficulties in determining customer satisfaction in the public sector, since
customers frequently have little options.

2. "Customer Responses: A Comparative Study," a research by Harry

Nowka, Nancy Buddy, Robert Reeder, and Daniel Hart, sought to pinpoint
the elements that affect patrons of a bar and grill. In the study, consumer
feedback was compared to that of significant rivals, student customers,
and a panel of non-customers. The results of the study showed that client
flow was significantly influenced by location and the owner's personality,
and spending patterns highlighted underused sections like food and pool.

3. The researchers Dawn Iacobucci, Amy Ostrom, and Kent Grayson

carried out a study named "Distinguishing Service Quality and Customer
Satisfaction: The Voice of the Consumer." They investigated whether
service quality and customer happiness are independent or related
concepts using a variety of approaches. The investigations looked at how
consumers perceived these phrases and if they thought they differed in
particular situations or dimensions.

4. In the context of Greek retail banking services, Antreas D.

Athanassopoulos carried out a research titled "Customer Satisfaction Cues
to Support Market Segmentation and Explain Switching Behavior." The
study suggested a measure of customer satisfaction that took into account
service quality as well as additional factors including cost, ease of use, and
innovation. It provided alternative perspectives for corporate clients and
individual clients by scientifically validating this concept. The study

29
investigated the link between switching behavior and customer
satisfaction indicators.

5. A research named "A Comparative Study on the Service Quality and

Customer Satisfaction among Private, Public, and Foreign Banks" was
carried out by Rengasamy Elango and Vijaya Kumar Gudep to evaluate the
service quality and customer happiness in Indian banks. The study looked
at many aspects of service quality with the goal of identifying the industry
offering the greatest customer service. The results showed that private
sector banks from outside and those of a new generation outperformed
public sector banks in terms of providing customer service, indicating the
need for development in this area.

30
 RESEARCH METHODOLOGY

This section describes the methodology used in the study, including the
techniques for gathering data, the sampling strategy, the instruments used
for the inquiry, the creation of the questionnaire, and study restrictions.

 Data Sources:
- Primary Data: The study used structured questionnaires to collect primary
data. These tests were altered and made to be trustworthy.
- Secondary Data: Secondary data was gathered from a variety of sources,
including books, newspapers, magazines, journals, and the internet (the
bibliography includes a list of specific sources).
 Research Design:
The study's descriptive design was made with the goal of fulfilling the set
objectives connected to comprehending the existing situation.
 Research Instrument:
- Structured questionnaires served as the study's main research tool.
 Limitations:

Although every attempt was taken to assure the report's legitimacy, a

number of things might have affected the results:

1. The survey's and data collection's reach was constrained by time.

2. It's possible that some survey participants didn't fully answer all of the
questions.

3. Because bank officials didn't cooperate very well, the sample size was
only 80.

4. The analysis may be biased because of a lack of subject-matter

expertise.

5. It's possible that some crucial factors were left out of the study.

6. Ongoing industry advancements could eventually reduce the study's

applicability.

31
7. The prejudices of the respondents could have shaped their opinions.

8. Respondents' resistance to change could have influenced how they saw

things.

32
 Data analysis for primary data

I conducted my research by distributing a Google form to 49 willing

participants. Using platforms like Instagram , WhatsApp and LinkedIn, I
collected responses to a series of questions. Here are the questions, their
answers, and my research findings.

1. Age

Interpretation: : : As we can observe that participants in this survey

were more of people between the age group 18-25 (79.6%), this maybe
because people of this age were more aware about banking sector, also
it can be assumed that these are the people who are student or early
workers. . After that the age group 24-35 (10.2%) has participated in
this survey more this people also have bank account but according to
my survey the people between 18-25 have responded more rather then
other age group. The age group of 36-45 only (4.1%) had responded and
the people between 45+ (6.1%) had responded.

33
2. Gender

Interpretation: From the above diagram we can conclude that

participants in this survey was the male are more (59.2 %) rather then
Female (40.8%). According to the survey we can assume that both male
and female are equal interested in survey.

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3. Occupation

Interpretation:- Students (73.5%): According to your poll, this group

has a sizable majority. It shows that a significant proportion of the
respondents to your survey are now enrolled in school, whether it is
high school, college, or other types of learning. This may indicate that
the majority of the people in your social circle or the group you
questioned are in the age bracket where schooling is the primary
employment. Business (14.3%): Compared to students in your poll,
fewer persons (14.3%) are involved in business. This implies that there
are fewer people who are actively engaged throughout a range of
business sectors, which might include everything from entrepreneurs
to corporate workers.

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4. Banks You are dealing with ?

Interpretation:- Most of the people according to our survey dealing

with HDFC bank and SBI ( State Bnak Of India).There are many other
banks people are dealing with other bank also.
SBI (State Bank of India) and HDFC Bank:
HDFC Bank is one of India's top private sector banks, with a large branch
network and a diverse variety of financial products and services. The
huge number of individuals dealing with HDFC Bank may be attributed
to the bank's strong presence and reputation.
SBI (State Bank of India): SBI is a big public sector bank in India with a
large client base. Individuals working with SBI may have long-standing
contacts with the bank or prefer public sector banking services.
It implies that many of the respondents in your poll have a need for
financial services such as savings accounts, loans, or investment
possibilities.
These banks may provide competitive goods and services to meet their
clients' different financial demands.
Factors such as these might impact the decision between HDFC Bank
and SBI.

36
5. What led you to select this specific bank as your choice, and if you had
to pinpoint one crucial factor, what would it be?

Interpretation:- Most of the people select bank because the service provide
by bank is very much good (42.9%) people select bank because of excellent
service.(30.6%) people have selected bank because of online banking
services is better. Some respondents chose a bank because it is physically
close to their home or place of employment, which eliminates the need for
long commutes.For those who place a high value on location, convenience
is important since it makes using financial services quicker and easier.
Those who like in-person banking transactions should pay special attention
to this element.

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6. Which banking services or account features are you currently utilizing at the
bank?

Interpretation:- There is a clear preference for this specific form of banking

product, as seen by the fact that 85.7% of respondents to your study use
savings accounts.According to your poll, 6.1% of respondents hold current
accounts, which shows that fewer people have selected this sort of banking
product than savings accounts. 6.1% of respondents to your poll reported
using fixed deposit accounts, which shows that fewer people than those
who picked savings accounts or current accounts have chosen this form of
banking product. The result that 2% of respondents use Non-Resident
Indian (NRI) accounts in your survey suggests that a tiny proportion of
respondents have unique banking demands because of their non-resident
status or connections to the global financial system.

38
7. For how long have you been a customer or client of this bank?

Interpretation:- According to your survey's results, the distribution of

people's bank account holding times sheds light on the stability and
relationship between people and their banks. 36.7% of respondents, the
majority, said they had retained their bank accounts for three to five
years. This amount of time shows that they are quite stable and happy
with their present financial arrangements.People who have kept their
accounts open for a while probably value the ease, reliability, and
services provided by their banks. 30.6% of those polled said they had
retained their bank accounts for one to two years. This shows that a
substantial number of people have lately moved banks or created new
financial ties. 22.4% of respondents, a sizable share, have kept their
bank accounts open for more than five years. This shows a high degree
of allegiance to and faith in their banks, as well as a track record of
satisfying banking encounters.Long-term account holders frequently
have a strong bond with their banks and feel at ease with them, which
makes it less likely that they would move to other providers. 10.2% of
respondents, a lesser but still sizable share, have had their bank
accounts for less than a year. People who recently started banking ties
or changed banks are included in this category.Owners of short-term
accounts may have been drawn to their present banks by better deals,
advancements in technology, or convenience.

39
8. What is the primary motive behind your visits to the bank
branch, and if you had to select one key reason, what would it be?

Interpretation:- Your survey's findings on the causes of people's bank

branch visits reveal information about their financial priorities and
routines. The majority of respondents, or 40.8%, visit a bank branch to
make deposits, indicating that many individuals still prefer or require
making deposits in person. This could be done for a number of reasons,
such depositing cash or checks or carrying out significant transactions.
The considerable number of people (30.6%) who visit bank locations to
withdraw cash emphasizes the enduring value of real currency for
everyday transactions and individual preferences for handling cash.
There is a substantial interest in financial planning and monitoring, as
seen by the number of people who seek advise on potential investments
and checking account balances. Many individuals go to bank locations
to get advice on handling their money. There is a substantial interest in
financial planning and monitoring, as seen by the number of people who
seek advise on potential investments and checking account balances.
Many individuals go to bank locations to get advice on handling their
money. The modest number of people (2%) who visit bank offices to fix
problems shows that mistakes can happen, but they don't happen very
often. These mistakes could involve anomalies in account balances,
mistakes with transactions, or other problems that need for manual
intervention.

40
9. Which service or facility provides you with the highest level
of satisfaction?

Interpretation:- The survey findings on respondents' satisfaction

with various banking services reveal important information about
respondents' preferences and experiences. 34.7% of respondents, a
sizable majority, said they were happy with the ATM facility. This
shows that a large number of consumers find the convenience of
ATM services for cash withdrawals and other standard banking
operations. About 28.6% of those surveyed said they are happy with
the net banking feature. This demonstrates a moderate degree of
satisfaction with online banking services, which provide easy access
to a variety of financial services through computer or mobile device.
About 24.5% of respondents said they were happy with the phone
banking options. This shows that some customers regard banking
services offered over the phone, such account enquiries and cash
transfers, to be practical and effective. 8.2% of respondents, a lower
percentage, are happy with the loan facility, suggesting that just a
tiny fraction of respondents have had good luck getting loans from
their banks. The interest bundle facility has the lowest satisfaction
rate (4.1%). According to this, just a tiny portion of respondents are
happy with the interest rates and other aspects of their banking
products.

41
10. If another bank offers superior services, would you consider
switching to that bank

Interpretation:- Customer loyalty and the elements that affect

banking decisions are shown through survey findings on people's
readiness to switch banks if another bank offers better service.
Customer loyalty and the elements that affect banking decisions are
shown through survey findings on people's readiness to switch
banks if another bank offers better service. However, a sizable
proportion of respondents, 40.8%, claim that they are loyal to their
present bank and would not leave even if a rival bank provided
superior customer care. This implies that some clients prioritize
elements other than quality of service, such as enduring connections,
trust, or convenience.

42
 Suggestion and Recommendations

1. Customers of HDFC Bank and HDFC Bank have both recommended

that the bank build a branch in an industrial area similar to a focal
point.

2. One of the suggestions that was made the most frequently was to
reduce the minimum balance needed in the savings account.

3. Employees should be more helpful to consumers.

4. The services offered and the numerous fees that customers must
pay were not adequately disclosed to them. Therefore, banks should
aim to provide their current clients with additional information.

43
 Reference

Website visited

www.hdfcindia.com
http://www.en.wikipedia.org/wiki/Standard_Chartered_Bank
www.finance.indiamart.com

Books followed

Research methodology by C.R. Kothari

Newspaper

Business standard

Economic Times

44
 QUESTIONNAIRE

1. Age?

Under 18

18 - 25

26 - 35

36 - 45

45+

Other:

2. Gender ?

Male

Female

Prefer not to say

3. Occupation?

Service

Professional

Business

Student

45
4. Banks you are dealing with ?

HDFC

SBI

Other:

5. What led you to select this specific bank as your choice, and if you had to
pinpoint one crucial factor, what would it be?

I maintain a conventional bank account with the bank that bears the specific brand
name mentioned.

The outstanding customer service provided by this bank

Online banking services

Location advantage

Other:

6. Which banking services or account features are you currently utilizing at

the bank?

Fixed Deposit

Saving Account

NRI Account

Current Account

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Other:

7. For how long have you been a customer or client of this bank?

Less then 1 year

1 to 2 years

3 to 5 years

more then 5 years

8. What is the primary motive behind your visits to the bank

branch, and if you had to select one key reason, what would it be?

Is the primary purpose of your visits to the bank branch to seek advice
on investment opportunities, or is it mainly to check your account
balance?

To make deposit

To withdraw cash any

Other:

9. Which service or facility provides you with the highest level of

satisfaction?

ATM

Interest package

loan

Net banking

Phone banking

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Other:

10. .If another bank offers superior services, would you consider
switching to that bank?

Yes
No

11. On a scale of preference, how would you rate the overall

service quality?

Excellent
Good
Satisfactory
Average
below Average

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