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PROJECT REPORT
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A PROJECT REPORT ON
COMPARATIVE STUDY OF CUSTOMER’SSATISFACTION
TOWARDS HDFC BANK AND
STATE BANK OF INDIA
MINU CHARANIABMS III SEM VI
1085182012-2013
St. Francis College for Women, Begumpet, HyderabadDepartment of Business Management Studies
March 2012
DECLARATION
I,Minu Charania of BMS III, roll no 108518, declare that this project titled,“A comparative study
of customer’s Satisfaction Towards hdfc bank And State bank of india” submitted to St.Francis
College For Women is a bonafide work undertaken under the guidance of my mentor-Dr. Subi
Verghese and has not been submitted to any other college or university for award of any
degree/diploma.
DATE:
Signature of the Student
Name of the Student: Minu Charania
Roll No. 108518
B.M.S – V Semester
SUPERVISOR’S CERTIFICATE
This is to certify that the project work entitled “A comparative study of customer’s Satisfaction
Towards hdfc bank And State bank of India” is a bonafide work carried out by Ms Minu
Charania, student of BMS III, St. Francis College for Women, Begumpet during the academic
year 2011-2012 in partial fulfillment for the award of the Degree of Bachelor of Management
Studies.
I hereby certify that the results embodied in this work have not been submitted to any other
Institution or University for an award or diploma. This work has been done under my
supervision.
Date: Signature of the Project Work Guide
Name of the Guide: Dr. Subi Verghese
Lecturer
Dept. of B.M.S
ACKNOWLEDGEMENT
In the successful completion of this project inspiration and guidance of many people was
involved. A mere form of acknowledgement would be demeaning the status of this whole effort
which has had the blessings and supervision of the eminent person around me.
First of all I would like to thank Dr.Subi Varghese who was there to guide me at every
step during the course of this project. She gave me tips for the improvement in project whenever
required. Apart from this I feel indebted to all faculty members of St.Francis College For
Women, especially who have helped, developed the right kind of attitude and scholastic
excellence in me. Last but not the least; I am very much thankful to my parents, friends and all
those persons who made this research project possible, for their consistent guidance and
constructive criticism.
Minu Charania
BMS(VI sem)
Roll NO:108518
TABLE OF CONTENTS
Contents Page No:
I. INTRODUCTION 1-3
1.1 Research Problem 1
1.2 Significance of the Project 1
1.3 Objectives of the study 2
1.4 Methodology
1.4.1 Sources of information
1.4.2 Sample Design
1.4.3 Tools and Techniques of Analysis
2-3
1.5 Scope of the study 3-11
II. REVIEW OF LITERATURE 4
2.1 Theoretical back ground 4-9
2.2 Citing of past works 10-11
III. COMPANY PROFILE 12-14
IV. DATA ANALYSIS AND INFERENCES 15-28
V. SUMMARY AND CONCLUSION 29-30
ANNEXURES i-iv
WEBLIOGRAPHY AND BIBILOGRAPHY v
Chapter 1
INTRODUCTION
Bankers play very important role in the economic life of the nation. The health of the economy is closely
related to the soundness of its banking system. Although bankscreate no new wealth but their borrowing,
lending and related activities facilitate the process of production, distribution, exchange and consumption
of wealth. In this way they become very effective partners in the process of economic development. To-
day modern banks are very useful for the utilization of the resources of the country. Thebanks are mobi-
lizing the savings of the people for the investment purposes. If there would be no banks then a great por-
tion of a capital of the country would remain idle A bank as a matter of fact is just like a heart in the eco-
nomic structure and the Capital provided by it is like blood in it. As long as blood is in circulation the or-
gans will remain sound and healthy. If the blood is not supplied to any organ then that part would become
useless, so if the finance is not provided to Agricultural sector or industrial sector, it will be destroyed.
Loan facility provided by banks works as an incentive to the producer to increase the production. Many
difficulties in the international payments have been overcome and volume of transactions has been in-
creased. Cheques, drafts bills of exchange and letters of credit are very important instruments of
the banks. The banks collect these instruments drawn on banks in other cities or countries and proceeds
according to the accounts of the customer's concerns
1.1 Research problem:
Through this research i have identified and investigated the variables that affect consumer
behavior regarding the services provided by HDFC bank and SBI bank. This will allow banking
sector organizations to build an effective marketing strategy whereas awareness of the market
will help to improve and adjust their customer centric approach. Why different people choose
different bank and what are the features they look for while utilizing its services?
1.2 Significance of the Study:
Consumer behavior is the study of when, why, how, and where people do or do not buy a
service. It studies characteristics of individual consumers such as behavioral variables in an
attempt to understand people's wants. It also tries to assess influences on the consumer from
several factors like Advertisement, Wide variety of Usage, low interest, ATM facilities, mobile
banking, internet banking, sms services etc.
Customer behavior study is based on consumer buying behavior, with the customer playing the
three distinct roles of user, payer and buyer. This study need to understand the behavior and
preferences of banking services of customers in the study area. The purpose of this study is to
investigate the factors affecting the customers’ decision made before purchase of a banking
service. My findings will help us give suggestions on what actions bankers might take in order to
fill the gap between consumer expectations and the company efforts.
1.3OBJECTIVES OF THE STUDY:
2. To know preference of customers regarding public sector banks and private sector banks.
3. To analyze which facility influences the customer most while selecting Bank.
4. To compare the various services provided by these banks.
5. To give suggestions and conclusions about the study.
1.4 Methodology:
Both Primary and Secondary research has been carried out for this study
Sample design
A random sample of 70 respondents was chosen for the research through the questionnaires
developed to find out the preferred brand of handset by the mobile phone users.
Sources of Data
o Primary data
The data, which has been collected for the first time and is original.
In this study the primary data is in the form of a structured questionnaire.
o Secondary Data
The secondary information is mostly taken from websites, books, journals and magazine
Tools and Techniques of Analysis:
The analysis done for the data obtained by the technique of random sampling is pri-
marily descriptive in nature.
1.5 Scope of the study
Personal visit to the branches of SBI and HDFC banks was done to collect the first hand
information. Study is done with the special reference to the area, Secunderabad city.
Chapter II
Review of Literature:
This chapter talks about evolution and history of banking, statistical data, awards, current
services provided by HDFC bank and SBI bank, major competitors in private sector and public
sector. This chapter is the base on which the objectives can be studied
Theoretical Background:
. The Indian banking can be broadly categorized into nationalized (government owned), private banks and
specialized banking institutions. The Reserve Bank of India acts a centralized body monitoring any
discrepancies and shortcoming in the system. Since the nationalization of banks in 1969, the public sector
banks or the nationalized banks have acquired a place of prominence and has since then seen tremendous
progress. The need to become highly customer focused has forced the slow-moving public sector banks to
adopt a fast track approach. The unleashing of products and services through the net has galvanized
players at all levels of the banking and financial institutions market grid to look anew at their existing
portfolio offering. Conservative banking practices allowed Indian banks to be insulated partially from the
Asian currency crisis.Indian banks are now quoting al higher valuation when compared to banks in other
Asian countries (viz. Hong Kong, Singapore, Philippines etc.) that have major problems linked to huge
Non Performing Assets (NPAs) and payment defaults. Co-operative banks are nimble footed in approach
and armed with efficient branch networks focus primarily on the ‘high revenue’ niche retail segments.
The Indian banking has finally worked up to the competitive dynamics of the ‘new’ Indian market and is
addressing the relevant issues to take on the multifarious challenges of globalization. Banks that employ
IT solutions are perceived to be ‘futuristic’ and proactive players capable of meeting the multifarious
requirements of the large customers base. Private banks have been fast on the uptake and are reorienting
their strategies using the internet as a medium The Internet has emerged as the new and challenging
frontier of marketing with the conventional physical world tenets being just as applicable like in any other
marketing medium.
The Indian banking has come from a long way from being a sleepy business institution to a highly
proactive and dynamic entity. This transformation has been largely brought about by the large dose of
liberalization and economic reforms that allowed banks to explore new business opportunities rather than
generating revenues from conventional streams (i.e. borrowing and lending). The banking in India is
highly fragmented with 30 banking units contributing to almost 50% of deposits and 60% of advances.
Indian nationalized banks (banks owned by the government) continue to be the major lenders in the
economy due to their sheer size and penetrative networks which assures them high deposit mobilization.
The Indian banking can be broadly categorized into nationalized, private banks and specialized banking
institutions.
The Reserve Bank of India act as a centralized body monitoring any discrepancies and shortcoming in the
system. It is the foremost monitoring body in the Indian financial sector. The nationalized banks (i.e.
government-owned banks) continue to dominate the Indian banking arena. Industry estimates indicate
that out of 274 commercial banks operating in India, 223 banks are in the public sector and 51 are in the
private sector. The private sector bank grid also includes 24 foreign banks that have started their
operations here. Under the ambit of the nationalized banks come the specialized banking institutions.
These co-operatives, rural banks focus on areas of agriculture, rural development etc., unlike commercial
banks these co-operative banks do not lend on the basis of a prime lending rate. They also have various
tax sops because of their holding pattern and lending structure and hence have lower overheads. This
enables them to give a marginally higher percentage on savings deposits. Many of these cooperative
banks diversified into specialized areas (catering to the vast retail audience) like car finance, housing
loans, truck finance etc. in order to keep pace with their public sector and private counterparts, the co-
operative banks too have invested heavily in information technology to offer high-end computerized
banking services to its clients.
TYPES OF BANKS
Central Bank
The Reserve Bank of India is the central Bank that is fully owned by the Government. It is governed by a
central board (headed by a Governor) appointed by the Central Government. It issues guidelines for the
functioning of all banks operating within the country.
Co-operative Sector
The co-operative sector is very much useful for rural people. The co-operative banking sector is divided
into the following categories.
a. State co-operative Banks
b. Central co-operative banks
c. Primary Agriculture Credit Societies
Development Banks/Financial Institutions
IFCI
IDBI
ICICI
IIBI
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
a. Old generation private banks
b. New generation private banks
c. Foreign banks operating in India
d. Scheduled co-operative banks
e. Non-scheduled banks
Private Sector Banks
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
10. Centurion Bank of Punjab
11. City Union Bank
12. Development Credit Bank
13. Dhanalakshmi Bank
14. Ganesh Bank of Kurundwad
15. IndusInd Bank
16. Jammu & Kashmir Bank
17. Karnataka Bank Limited
18. Karur Vysya Bank
19. Kotak Mahindra Bank
20. Lakshmi Vilas Bank
21. Nainital Bank
22. Ratnakar Bank
23. SBI Commercial and International Bank
24. South Indian Bank
25. Amazing Mercantile Bank
26. Punjab National Bank
27. Rupee Bank
28. Saraswat Bank
29. Tamilnad Mercantile Bank
30. Thane Janata Sahakari Bank
31. Bassein Catholic Bank
After nationalization of 14 commercial banks in 1969, no new private banks were licensed by
RBI in the country, though there was no legal bank on entry of private sector banks. The Narsimha
committee report of 1991, has envisaged a larger role for private sector banks. In recognition of need to
introduce greater competition with a view to achieving higher productivity and efficiency of banking
system. RBI issued few guidelines in Jan 1993 for entry of private sector banks. It prescribed of minimum
paid up capital of Rs.100 crores for new bank and shares to be listed at stock exchanges new bank after
being granted license under Banking Regulation Act, shall be registered as Public ltd. Company under
companies Act 1956. Subsequently nine new commercial banks have been granted license to start
banking operations. The new private sector banks have been very aggressive in business expansion and
are also reporting higher profit levels taking advantage of technical and skilled manpower. In certain
areas, these banks have been out crossed the other group of banks including foreign banks.
GUIDELINES FOR PRIVATE SECTOR BANKS
The RBI issued guidelines regarding the formation and functioning of private sector banks in January
1993. These guidelines are as follows:
The banks shall be governed by the provisions of The Reserve Bank of India Act, 1934
The Banking Regulations Act, 1949 other relevant statuaries.
Private sector banks are required to be registered as public limited companies in India.
The authority to grant a license lies with the RBI.
The shares of banks are required to be listed on stock exchanges.
Preference will be given to those banks whose headquarters are proposed to be located in
a center that does not have headquarters of any other bank.
Maximum voting rights of an individual shareholder would be limited to 1% of total
voting rights.
The new bank would not be allowed to have as its director any person who is already a
director in a banking company.
The bank will be subject to prudential norms in respect of banking operations, accounting policies
and other policies, as laid down by RBI. The bank will be required to adhere to the following:
Minimum paid up share capital of Rs. 1 bln. Promoters' contribution as determined by the RBI
Capital adequacy of 8% of the risk weighted assets Single borrower and group borrower exposure
limits in force Priority sector lending Export credit Loan policy within overall policy guidelines
laid down by the RBI.
The banks will be free to open branches anywhere once they satisfy the capital adequacy
and prudential accounting norms.
The banks would not be allowed to have investments in subsidiaries, mutual funds and
portfolio investments in other companies in excess of 20% of the banks' own paid up
capital and reserves.
The banks would be required to use modern infrastructural facilities in office equipment, computer,
telecommunications etc.
MAJOR PLAYERS IN PRIVATE SECTOR BANKS
ICICI Bank: ICICI Banking is commercial Banking arm of ICICI group. It received its banking license
from RBI on may 17 may 1994 and its branch was started in Madras in June 1994. ICICI Bank has a
network of about 560 branches and extension counters and over 1,900 ATMs. ICICI Bank offers a wide
range of banking products and financial services to corporate and retail customers through wide variety of
delivery channels and through its specialized subsidiaries and affiliates in the areas of investment
banking,life and non-life insurance, venture capital and asset management. ICICI Bank set up its
international banking group in fiscal 2002 to cater to cross border needs of clients and leverage on its
domestic banking strengths to offer product internationally. ICICI Bank’s equity shares are listed in India
on the Stock Exchange, Mumbai and the National Stock Exchange of India Limited and its American
Depositary Receipts are listed on New York Stock Exchange. It is the first bank to start Internet banking
service in India. In 1999, ICICI become the first Indian Company and the first bank or financial
institution from non-Japan Asia to be listed on NYSE.
IDBI Bank: IDBI Ltd., the tenth largest development bank in the world has promoted world class
institutions in India. IDBI promoted IDBI bank to mark the formal foray of the IDBI group into
commercial Banking. IDBI begun with an equity capital base of Rs.1000 million, commenced its first
branch at Indore in November 1995. The birth of IDBI took place after RBI issued guidelines for entry of
new private sector banks in January 93. IDBI bank deployed Finacle, the e-age banking solution from
Infosys tio consolidate its position, meet challenges and quickly seize new business opportunities. IDBI
bank become the first to offer mobile refill/recharge using sms, launch of “ATM next”, which provide
online information about News, cricket scores, emergency numbers, bank’s products on ATMs.
UTI Bank: UTI Bank was the first of the new private banks to have brgun operations in 1994, after the
government of India allowed new private banks to be established. The Bank was promoted jointly by the
Administrator of the specified undertaking of the United Trust of India(UTI-I), Life Insurance
Corporation of India(LIC) and General Insurance Corporation Ltd. and its associates viz.National
Insurance Company Ltd.,The New India Assurance Corporation, The Oriental Insurance Corporation and
United Insurance Company Ltd. The bank today is capitalized to the extent of Rs.278.12 crores with
public holding at 56.18 %. The bank’s registered office is at Ahmedabad and its central office is at
Mumbai. The bank has wide network of more than 350 branch offices and Extension Counters. The Bank
has network of over 1657 ATMs providing 24hrs a day banking convenience to its customers. The bank
was setup with capital of Rs.115 crore, with UTI contributing Rs.100 crore, LIC-Rs.7.5 crore and its four
subsidiaries contributing Rs. 1.5 crore each.
HDFC Bank: HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of
over 495 branches spread over 218 cities across India. All branches are linked on an online real-time
basis. Customers in over 120 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 NSE/BSE have a strong and active member base. The
authorized capital of HDFC Bank is Rs.450 crore (Rs.4.5 billion). The paid-up capital is Rs.309.9 crore
(Rs.3.09 billion). The HDFC Group holds 22.2% of the bank’s equity and about 19.5% of the equity is
held by the ADS Depository. The Bank has made substantial efforts and investments in acquiring the best
technology available internationally, to build the infrastructure for a world class bank.
Public Sector Banks
a. State Bank of India and its associate banks called the State Bank Group
b. 20 nationalized banks
c. Regional rural banks mainly sponsored by public sector banks
Public Sector Banks (Nationalized banks):
1. State Bank of India (SBI)
2. State Bank of Bikaner & Jaipur
3. State Bank of Hyderabad
4. State Bank of Indore
5. State Bank of Mysore
6. State Bank of Patiala
7. State Bank of Saurashtra
8. State Bank of Travancore
9. Bank of India
10. Canara Bank
11. Central Bank of India
12. Corporation bank
13. Indian Bank
14. Indian overseas bank
15. Syndicate Bank
16. UCO Bank
17. Allahabad Bank
18. Andhra Bank
19. Bank of Baroda
20. Bank of Maharashtra
21. Dena Bank
22. Oriental Bank of Commerce
23. Punjab & Sind Bank
24. Union Bank of India
25. United Bank of India
CITING OF PAST WORK
This part of the chapter talks about past research studies that were conducted on consumer behavior
towards banking services , their attitudes towards different features services and other studies public
sector banks and private sector banks. These studies show how consumer attitudes have slowly turned
positive with regard to banking and its varied variety of services, be it online banking, ATM, or basic
services like deposit, loan, interest. The research studies covered here are national as well as
internationally conducted researches and results obtained from the analysis of such research.
1. Denise K. Conroy in his study titled (Customer satisfaction measures in the public sector: what do
they tell us?) attempts to devise customer satisfaction measures, according to him there are a number of
factors which can affect the interpretation of results - the nature of the customer, service provision, ser-
vice quality and, for the public sector, the extent to which consumer sovereignty exists. Resources may be
better directed towards setting and maintaining high levels of standard of service. This study addresses
the difficulties and highlights the complex nature of a customer or service beneficiary who can be, at the
same time, a taxpayer, voter, recipient of financial benefits, with expectations of the public sector and its
delivery agent, yet cannot choose another provider.
2.Harry Nowka, Southwestern Oklahoma State University,
Nancy Buddy, Southwestern Oklahoma State University,
Robert Reeder, Southwestern Oklahoma State University and
Daniel Hart, Southwestern Oklahoma State University in their study titled (Customer responses: A COMPARATIVE
STUDY) wants to determine various variables which influence customers of a bar and grill. This comparative analysis includes
customer responses with comparisons made to the major competitor's customer responses, student customer responses, and
responses of a panel of non customers assembled to assess potential customer responses. This study indicates that location can be
a significant deterrent to expansion of the customer base. The personality of the owner can have a positive impact on customer
flow. Analysis of spending patterns indicates that food and pool were underutilized. The male/female ratio was a determinate of
customer flow.
3. Dawn Iacobucci, Amy Ostrom, Kent Grayson in their study titled(Distinguishing Service Quality and Customer
Satisfaction: The Voice of the Consumer) presents two studies that rely on divergent methodologies to examine whether or not
quality and satisfaction have distinct antecedent causes, consequential effects, or both (i.e., whether or not they should be
considered a single construct, or distinct, separable constructs). They focus on consumers’ understanding and use of the words
quality and satisfaction; in both studies, respondents report whether or not they think quality and satisfaction differ, and if so, on
what dimensions or under what circumstances. In the first study, they use the qualitative “critical incident” technique to elicit
service attributes that are salient to respondents when prompted to consider quality and satisfaction as distinct. they code the
responses to these open-ended survey questions to examine whether quality can be teased apart from satisfaction, from the
respondents’ (consumers’) perspective. In the second study, to triangulate on the qualitative data, they experimentally
manipulated a number of service attributes drawn from both the first study and from the literature to see whether or not they have
differential impacts on judgments of quality and satisfaction. They did not presuppose that quality and satisfaction differ—rather,
they asked respondents to make a judgment either of quality or of satisfaction, defining the term as they saw fit.
4. Antreas D. Athanassopoulos in his study titled (Customer Satisfaction Cues To Support Market Segmentation and
Explain Switching Behavior) examined the customer satisfaction cues in retail banking services in Greece. The study proposes
an instrument of customer satisfaction that contains service quality and such other attributes as price, convenience, and
innovation. The proposed framework of customer satisfaction was verified empirically yielding four distinct facets for business
customers and five for individual customers. The performance implications of the customer satisfaction instrument are also
explored. What is shown is that customer segments, in fact, yield statistically different satisfaction scores, which verifies the
managerial value of customer segmentation practices. Finally, the facets of customer satisfaction as explanatory cues for the
switching behavior of individual and business customers were tested successfully.
5. Rengasamy Elango and Vijaya Kumar Gudep in their study titled(A Comparative Study on the Service Quality and
Customer Satisfaction among Private, Public and Foreign Banks) focuses on the service quality and customer satisfaction
among the private, public and foreign banks in India. An analysis is carried out to examine the level of awareness among
customers and to identify the best sector which provides qualitative customer service. This becomes relevant in the context of
recommendations of various committees constituted by the Government of India and the RBI, from time to time, to suggest
measures to improve customer service systems of the public sector commercial banks of India. A well-structured questionnaire is
used to collect the views of respondents across the three banking sectors. The survey instrument includes various dimensions,
pertaining to the quality of customer services in terms of banking personnel, convenient working hours, Web-based services,
error free value-added services and efficient grievance redressal mechanism etc. Apart from the basic statistical tools such as
measures of central tendency, The authors also use `factor analysis' and the `One-way Anova' classification. The idea behind this
is to extract the relevant factors and analyze whether there is any significant difference with respect to service quality within the
three banking sectors. The results indicate that the level of awareness among the customers improved significantly during the
study period. It is interesting to note that the results are consistent with the previous studies conducted on customer service
aspects, and it has been observed that the foreign and the new generation private sector banks are serving the customers better.
This has larger implications on the public sector commercial banks in India with respect to customer service delivery aspects. It is
high time the public sector commercial banks made efforts to revamp their approach towards customers, so as to perform better
and derive competitive advantage in the long run.
Chapter III
Company profile:
This chapter deals with the overview of HDFC bank and SBH bank. There is a details study
about both the banks there achievements, services, functions, mergers, and subsidiaries.
3.1 Overview of SBI
The origin of the State Bank of India goes back to the first decade of the nineteenth century with
the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later the bank
received its charter and was re-designed as the Bank of Bengal (2 January 1809). A unique
institution, it was the first joint-stock bank of British India sponsored by the Government of
Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed
the Bank of Bengal. These three banks remained at the apex of modern banking in India till their
amalgamation as the Imperial Bank of India on 27 January 1921.
Primarily Anglo-Indian creations, the three presidency banks came into existence either as a
result of the compulsions of imperial finance or by the felt needs of local European commerce
and were not imposed from outside in an arbitrary manner to modernise India's economy. Their
evolution was, however, shaped by ideas culled from similar developments in Europe and
England, and was influenced by changes occurring in the structure of both the local trading
environment and those in the relations of the Indian economy to the economy of Europe and the
global economic framework.
The eight banking subsidiaries are:
1-State Bank of Bikaner and Jaipur (SBBJ)
2-State Bank of Hyderabad (SBH)
3-State Bank of India (SBI)
4-State Bank of Indore (SBIR)
5-State Bank of Mysore (SBM)
6-State Bank of Patiala (SBP)
7-State Bank of Saurashtra (SBS)
8-State Bank of Travancore (SBT)
2.2 PRODUCTS AND SERVICES PROVIDED BY SBI
Savings Accounts
Current Accounts
Fixed Deposits
Loans
Personal Loans
Home Loans
Two Wheeler Loans
New Car Loans
Used Car Loans
Overdraft Against Car
Express Loans
Gold Loan
Educational Loan
Loan Against Securities
Loan Against Property
Loans Against Rental Receivables
Cards
Credit Cards
Debit Cards
Access Your Bank
NetBanking
ATM
3.2 Overview of HDFC BANK
HDFC Bank began operations in 1995 with a simple mission: to be a "World-class
Indian Bank". They realized that only a single-minded focus on product quality
and service excellence would help them to get there.
HDFC Bank, one amongst the firsts of the new generation, tech-savvy commercial banks of
India, was set up in august 1995 after the Reserve Bank of India allowed setting up of Banks in
the private sector. 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 year
ended March 31, 2006 was up 30.8% to Rs 870.8 crores
Branch network
Currently (2007), HDFC Bank has 583 branches located in 263 cities of India, and all branches
of the bank are linked on an online real-time basis. The bank offers many innovative products &
services to individuals, corporates, trusts, governnments, partnerships, financial institutions,
mutual funds, insurance companies. The bank also has over 1471 ATMs. In the next few month
the number of branches and ATMs should go up substantially.
Profile
The Housing Development Finance Corporation Limited (HDFC) was amongst the first
to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the
private sector, as part of the RBI's liberalisation of the Indian Banking Industry in 1994. The
bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered
office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank
in January 1995.
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 governance and
regulatory compliance. HDFC Bank's business philosophy is based on four core values
Operational Excellence, Customer Focus, Product Leadership and People
PRODUCTS AND SERVICES PROVIDED BY HDFC BANK
HDFC Bank mainly provides three kinds of banking services:
Personal Banking
NRI Banking
Wholesale Banking
The following are the products and services provided by the HDFC bank
HDFC Bank provides loans like Personal Loans , Home Loans , Educational Loans , Two
Wheeler Loans , New car Loans, Used Car Loans, Overdraft Against Car, Express Loans,
etc.
HDFC Bank provides Credit, Debit and Prepaid Cards to help you meet your financial
objectives.
HDFC Bank provides facilities like Mutual Funds , Insurance , General & Health
Insurance, Bonds , Financial Planning, Knowledge Center, Equities & Derivatives,
Mudra Gold bar.
If you need to deal in foreign currency and keep tabs on exchange rates every now and then,
transfer funds to India, make payments etc., HDFC Bank has a range of products and services
that you can choose from to transact smoothly, efficiently and in a timely manner.
With HDFC Bank 's payment services, you can bid goodbye to queues and paper work. HDFC 's
range of payment options make it easy to pay for a variety of utilities and services.
HDFC Bank has designed two programs to make banking easier for the customers and they are
HDFC Bank Preferred Programme
HDFC Bank Classic Programme.
HDFC Bank offers Private Banking services to high net worth individuals and institutions.
HDFC Bank offers you quick, economical and convenient options to remit and transfer funds to
India.
Corporate Banking reflects HDFC Bank 's strengths in providing our corporate clients in India, a
wide array of commercial, transactional and electronic banking products.
HDFC Bank acts as an active medium between the government and the customers by means of
various services
Savings Accounts
Regular Savings Account
Savings Plus Account
SavingsMax Account
No Frills Account
Retail Trust Account
Salary Accounts
Payroll
Classic
Regular
Premium
Defence Salary Account
Kid's Advantage Account
Pension Saving Bank Account
Family Savings Group
Current Accounts
Plus Current Account
Trade Current Account
Premium Current Account
Regular Current Account
Reimbursement Current Account
Chapter IV
Data Analysis and Interpretation
This chapter deals with analysis and discussions of the study . For the purpose of analyzing,
raw data was summarized in a master table and from this table the results have been carried out.
The questions having multiple/ alternative choices were analyzed by taking percentages. In the
case of questions on likert scale, the mean scores were calculated.
In case of ranking questions the total score has been added and final ranking is given by
calculating mean. In case of checklist questions the average of total no. of responses was
calculated. In case of explanatory questions, the general suggestions were summarized
This chapter analyses the comparative study of customer’s Satisfaction towards HDFC bank And
State bank of India
PRIMARY DATA ANALYSIS:
The figures below show the data collected and the interpretation of all such data.
Table 4.1:
Showing the age group of respondents who utilize the services of HDFC bank & SBI
bank
AGE SBI HDFC
LESS THAN 25 10 8
25-35 16 24
35-45 12 14
45-55 24 18
55 & ABOVE 8 6
(SOURCE: Questionnaire)
Fig 4.1:
Showing the age group of respondents who utilize the services of HDFC bank & SBI
bank
LESS THAN 25
25-35 35-45 45-55 55 & ABOVE
0
5
10
15
20
25
SBIHDFC
(SOURCE: Questionnaire)
Table 4.2:
Showing the gender of respondents who utilize the services of HDFC bank & SBI bank
GENDER SBI HDFC
MALE 56 54
FEMALE 14 16
(SOURCE: Questionnaire)
Fig: 4.2
Showing the gender of respondents who utilize the services of HDFC bank & SBI bank
SBI
HDFC
0 10 20 30 40 50 60
FEMALEMALE
(SOURCE: Questionnaire)
Table & fig :4.3
Comparative study of the customers of sbi and hdfc bank regarding their occupation
SERVICE
BUSINESMAN
PROFESSIONAL
STUDENT
HOUSEWIFE
2.5 7.5 12.5 17.5 22.5 27.5 32.5 37.5 42.5 47.5SERVICE BUSINESMAN PROFESSIONAL STUDENT HOUSEWIFE
SBI 30 12 6 16 6
HDFC 24 46 10 6 4
Occupation
(SOURCE: Questionnaire)
From the above data it can be clearly understood from table 4.3 that the customers that utilize the
services from HDFC bank and SBH bank are from occupations like service, business,
professions, student, and housewives.
Table:4.4
Comparative study of the customers of sbi and hdfc bank regarding their income
INCOME SBI HDFC
NIL 0 4
LESS THAN 50000 16 8
50000-150000 14 18
150000-300000 20 16
300000-500000 12 18
500000-ABOVE 8 6
(SOURCE: Questionnaire)
Fig : 4.4
Comparative study of the customers of SBI and HDFC bank regarding their income
NIL LESS THAN 50000
50000-150000
150000-300000
300000-500000
500000-ABOVE
0
16 14
20
128
48
18 16 18
6
IncomeSBI HDFC
(SOURCE: Questionnaire)
From the above data (fig: 4.4) it can b interpreted that the customers income group consisting nil
income is zero in SBH nil income group are those customers who are students by occupation.
Table: 4.5
Comparative study of most important reason choosing the particular bank
FACTORS
I have a traditional bank account with the same bank
The brand name of the bank
The excellent service offered by this bank
ATM service
Net banking facility
Location advantage
2.5 7.5 12.5 17.5 22.5 27.5FAC-TORS
I have a tradi-tional
bank ac-count
with the same bank
The brand
name of the bank
The ex-cellent service offered by this bank
ATM service
Net banking facility
Location advan-
tage
Se-ries1
0 24 8 10 14 6 8
Se-ries2
0 6 12 24 10 4 14
Reason of choosing a particular bank
(SOURCE: Questionnaire)
From the above data analysis in fig:4.5 the factors affecting in choosing a particular bank for
HDFC bank the most important factor is “the excellent service offered by the bank” and the most
important factor for SBI bank is “I have a traditional bank account with the same bank”
Table 4.6:
Comparative study of the customers of SBI and HDFC bank regarding the account facilities
provided to them
(SOURCE: Questionnaire)
Fig: 4.6
Comparative study of the customers of SBI and HDFC bank regarding the account
facilities provided
Savings account
Current account
Fixed deposit
NRI account
36
10
24
0
42
14
13
1
Account facility availing in the bankHDFC SBI
(SOURCE: Questionnaire)
From the above fig:4.6 we can interpret that the number of savings account is more with HDFC
than with SBI and the number of fixed deposits are more with SBI bank than HDF
Table 4.7:
FACILITY SBI HDFC
Savings account 36 42
Current account 10 14
Fixed deposit 24 13
NRI account 0 1
Comparative study of the time period of customers dealing with SBI And HDFC bank
(SOURCE: Questionnaire)
Fig 4.7:
Comparative study of the time period of customers dealing with SBI And HDFC bank
1234
0 5 10 15 20 25 30
TIME PERIOD
HDFC SBI
(SOURCE: Questionnaire)
From the above data analysis we can interpret that most accounts held by HDFC bank is for 3-5
years and the most number of accou nts held by SBI bank is for 1-2 years.
Table 4.8
YEARS SBI HDFC
Less than 1 year 14 14
1 to 2 years 24 18
3 to 5 years 14 26
More than 5 years 18 12
Comparative study of reason that make customer to typically visit bank branch
(SOURCE: Questionnaire)
Fig: 4.8
Comparative study of reason that make customer to typically visit bank branch
28
414
2434
6 1020
Visit To The BankSBI HDFC
(SOURCE: Questionnaire)
From the above data interoperated in figure 4.8 it is clearly observed that most of the customers
visiting HDFC bank is to make a deposit. whereas, the reason for visit for most of the SBI
customers is to withdraw cash.
REASONS SBI HDFC
To make a deposit 28 34
To get advice for investment options 4 6
To inquire about a balance 14 10
To withdraw cash 24 20
Table: 4.9
Comparative study of most satisfying facility Offered by them
ATM Loan Early cheque clearance
Preparation of drafts
Interest package
Net banking Phone bank-ing
SBI 13 7 2 3 3 3 4
HDFC 10 4 8 2 3 5 3
1
3
5
7
9
11
13
Most Satisfying Facility
Num
ber o
f cus
tom
ers
(SOURCE: Questionnaire)
Table 4.10
. Customers want to shift to another bank if they are provided with better service
(SOURCE: Questionnaire)
Fig: 4.10
Customers want to shift to another bank if they are provided with better service
SBI HDFC
69
2926
Shift To Another Bank If Provided Better Service
YES NO
(SOURCE: Questionnaire)
Table 4.11:
CHANGE SBI HDFC
YES 6 9
NO 29 26
. Comparison regarding the overall satisfaction of the customers
(SOURCE: Questionnaire)
Fig 4.11:
Comparison regarding the overall satisfaction of the customers
EXCELL
ENT
GOOD
SATIS
FACTO
RY
AVERAGE
BELOW
AVERAGE
86
18
30
712
85
3
Overall SatisfactionSBI HDFC
(SOURCE: Questionnaire)
Chapter 5
SATISFCTION SBI HDFC
EXCELLENT 8 7
GOOD 6 12
SATISFACTORY 18 8
AVERAGE 3 5
BELOW AVERAGE 0 3
5.1 Suggestions and Recommendations
1. Both the customers from SBI and HDFC bank have suggested that the bank should open
one of its branch in industrial area like focal point.
2. One of the most common suggestion was to lower down the minimum balance required
in the saving s account.
3. Staff should be more co-operative to the customers.
4. Customers were not fully aware of the services and the various charges which they have
to pay. Therefore Banks should try to give some more information to its existing
customers
Assumptions
The project report is based on the preference of the customers and the level of satisfaction
towards SBI and HDFC bank. During project we come to know that both the banks are highly
preferred by the customers but their preference is different up to some extend towards the service
of these banks. Following are the assumptions of the project.
1. Range of the survey is limited to Patial city. It may not hold the same result in the
different city.
2. The sample size for the survey is restricted up to 70. Out of Which 35 questionnaire was
filled by the customers of SBI and 35 was filled by customers of HDFC bank.
3. Survey is done in a very short period of time. This may have impact on the final result of
the survey.
Chapter VI
Appendix
QUESTIONNAIRE
CUSTOMER PREFERENCE TOWARDS SBI AND HDFC BANK
1. Name____________________
2. Gender
Male Female
3. Age
Less than 25 25-35
35-45 45-55
55-above
4. Occupation
Service Business
Professional Student
Housewife
5. Income
Nil Less than 50,000
50,000 to 1,50,000 1,50,000 to 3,00,000
3,00,000 to 5,00,000 5,00,000 and above
6. Bank you are dealing with
HDFC SBI
7. What was the single most important reason that you chose this particular Bank
I have a traditional bank account with the same bank
The brand name of the bank
The excellent service offered by this bank
ATM service
Net banking facility
Location advantage
Any other please specify_______________________________________
8. Which account facility you are availing in the Bank
Savings account Current account
Fixed deposit NRI account
9. Since how many years you are dealing with this Bank
Less than 1 year 1 to 2 years
3 to 5 years More than 5 years
10. What is the main reason that you typically visit your bank branch
(please choose the single most important reason)
To make a deposit
To get advice for investment options
To inquire about a balance
To withdraw cash
Any other please specify______________________________________________
11. How would you rate the following banking service quality on scale of 1-5 provided by bank
where 1-excellent, 2-good, 3 above-average, 4-average, 5-below average
Access Communication
Confidentiality Courtesy
Reliability Security
Responsiveness Waiting time
12. Which facility satisfies you most
ATM Interest package
Loan Net banking
Early cheque clearance Phone banking
Preparation of drafts
13. If you are provided with better services by optional bank. Would you like to move to other
bank.
Yes No
14. How would you rank the overall service
Excellent Good
Satisfactory Average Below Average
Suggestions
If any______________________________________________
signature
Thank you very much for your time, cooperation & patient
BIBLIOGRAPHY
WEBSITE USED
www.hdfcindia.com
www.statebankofindia.com
http://www.banknetindia.com/banking/index_1.htm
http://www.asiatradehub.com/india/banking/finance.html
http://www.en.wikipedia.org/wiki/Standard_Chartered_Bank
http://www.finance.indiamart.com/investment_in_india/standard_chartered_bank. html
http://www.essays.se/about/literature+review+of+customer+satisfaction/
http://www.emeraldinsight.com
http://www.essays.se/about/literature+review+of+customer+satisfaction
http://www.essays.se/about/literature+review+of+customer+satisfaction/?startrecord6
BOOKS FOLLOWED
Research methodology by C.R. Kothari
NEWS PAPERS
Business standard
Economic Times