A Study of Financial Analysis of Hdfc Bank of Poonam Mod

SUMMER TRAINING REPORT

A

PROJECT REPORT

ON

A STUDY OF FINANCIAL ANALYSIS OF HDFC BANKSubmitted in partial fulfilment of

MASTER of BUSINESS ADMINISTRATION

In the

Chandigarh Business SchoolPunjabi University, Patiala

CHANDIGARH UNIVERSITY, GHARUAN

(2013-2015)

Supervised by :-

Submitted by :-Kirti Awasthi

Sudhir Kumar(Assistant Professor)

MBA 4th Sem. 602

PREFACESomeone has rightly said that practical knowledge is far better than classroom teaching. During the course of this project we actually realized how true it is when we analyzed the Banking Industry. This project enabled us to know about the consumers needs and competitors activities in the real world of Banking.

The subject of my study is A STUDY OF FINANCIAL ANALYSIS OF HDFC BANK for which I have studied about the FINANCIAL ANALYSIS OF HDFC BANK and collected data of the bank for the last 10 years for its relevance.

The report contains at first, the brief introduction about the company, Industry Profile and introduction to banking.

I have expressed my experiences in my own simple way. I hope who goes through it will find it interesting and worth reading. All constructive feedback is cordially invited.

ACKNOWLEDGEMENTThis project report bears the imprint of those who had rendered their wholehearted support and encouragement without whose help this effort of mine would be in vain. I express my deep sense of gratitude and sincere thanks to my project guide Mrs Keriti Awasthi for his direction; suggestion and information provide which were of utmost importance for the successful completion of the project. I am also thankful to the employees of the HDFC Bank for assisting me in the timely completion of the project.

At last, I also thank to my family and my friends and also BM Manjinder Singh those helped me in my training period and in the completion of project.

DECLARATION

I Sudhir Kumar hereby that the research project report title A STUDY OF FINANCIAL ANALYSIS OF HDFC BANK is my own original research work and this report has not been submitted to any university/institute for the award of any professional degree or diploma. (SUDHIR KUMAR) CERTIFICATE

(WHOM SO EVER IT MAY CONCERN)

This is to certify that the seminar report entitled Customer Satisfaction in Birla Sunlife Insurance carried at School of Management Studies, Punjabi University, Patiala is a bonafide work done by Inderdeep Singh, Roll no. 507 and submitted the same in the partial fulfillment for the award of the degree of MASTER OF BUSINESS ADMINISTRATION .

I found him to be good in task and activities assigned to him. I wish him success in all future endeavors.

(SIGNATURE)

Ms. Sania singla (FACULTY GUIDE)

INDEX

Ch.No. ParticularsPage No.

1.A. Introduction to the industry 6-11

2. Objectives of Study

21-22

3.Review of Literature

4.Research methodology 23-28

5.Limitations of the study 29-30

6.Data analysis & Interpretataion 31

7.Findings , Conclusion and Recommendiation32-46

Bibliography47-50

Questionnaries51

52-55

CHAPTER-1INTRODUCTION

EXECUTIVE SUMMARYThe report contains the organizational study done at HDFC Bank. The report title is financial analysis of HDFC BANK. The report gives an overview of the banking Sector and company profile. And awareness ofcustomers about different types of products and services offered by HDFCBank. This study was conducted to find out the customer satisfaction regarding HDFC bank. The methodology adopted for the study was through a structured questionnaire, which is targeted to the different persons in Machhiwara. For this purpose sample size of 100 was taken. The data collected from the different persons was analyzed thoroughly and presented in the form of charts and tables.HDFC must advertise regularly and create brand value for its products and services. Most of its competitors like ICICI, Axis, Kotak Mahindra and nationalized banks use television advertisements to promote their products. The Indianconsumer has a false perception about private banks they feel thatit would not safe.Safety and returns are the two main reasons people invest in banks. On the whole HDFC bank is a good place to work at. Every new recruit is provided with extensive training on theproductsofHDFC.Thistrainingenablesanadvisor/salesmanagertomarketthe policies better.The company should tryto create awareness about itself in India. . With an improvement in the sales techniques used, a fair bit of advertising and modifications to the existing product portfolio, HDFC would be all set to capture the banking market in India as it has around the globe.The Salient Features of the Bank are: Leading Co-operative Bank of Northern India.

Competitive interest rates on deposits and loans.

All deposits are insured under DICGC Scheme.

Draft facility throughout India.

Micro-level advancing to individual borrowers in agriculture, small-scale industries and service sector.

Macro-level advancing to Societies and Self-Help Groups for social development.

Financing infrastructure development of the State through HPSEB, HRTC, HPFC, HPIDB, HPSCSC etc.

Disbursing pensions to HPSEB, HRTC, Defence personnel and freedom fighters.

All borrowers extended Insurance facilities.

Fully computerised Bank head office, zonal offices and four main branches at Dharamshala, Una, Hamirpur and Kullu.

INTRODUCTION TOBANKINGBanking means accepting the deposits from the customers for lending to the needy and extending the other services as to issue of dd etc. nowadays after introduction of private sector banks thebanks have become aprofit centre andthe functions become changed and now banks are doing the insurance and mutual funds also. But nationalized banks are still service orientedin extending loans forEducation loan,and rural development activities.A Bankis an organization which lends money to the borrowers for a purposeful task, and provides a facility to deposit andwithdraw money when needed andcharge for it.BANKING CHANNELS:Banks offer many different channels to access their banking and other services:

ATM is a machine that dispenses cash and sometimes takes deposits without the need for a human bank teller. Some ATMs provide additional services.

A branch is a retail location. Call centre. Mobile banking is a method of using one's mobile phone to conduct banking transactions. Online banking is a term used for performing transactions, payments etc. over the Internet.CORPORATE TIE-UP:National Insurance Company Limited

The Bank has signed a MOU with "National Insurance Company Limited" for Corporate Agency Arrangement to provide non-life Insurance Services to Customers and General public along with the Banking Services at a single window through various branches of the Bank.

Kotak Mahindra, Old Mutual Life Insurance Limited

We are pleased to inform you that Bank has entered into a Referral Agreement with Kotak Mahindra, Old Mutual Life Insurance Limited. Under the agreement, the Bank will refer its customers and prospective customers through its branches to the insurance company for distribution and providing its life insurance products viz. Sukhi Jeewan and Eternal Life.

Hero We are pleased to inform you that Bank has entered into an MOU with Hero Honda Motors for financing Motor Cycles.

Tata MotorsWe are pleased to inform you that Bank has entered into an MOU with Tata Motors for financing Tata Vehicles..

AXIS,and ICICI BankThe Bank has also corporate tie-up with AXIS, and ICICI Bank for remittance and collection purposes.

Schedule of Banks (1.1)

Table 1.1

Source:-www.hdfc.comAt present there are (27) Public Sector Banks, about (30) Private Sector Banks, (40) Foreign Banks and (196) RRBs, Urban Co-Operative Banks (52), State Co-Operative bank

(16), Nationalized Banks (19), State Bank of India Associates (8), there are about 68,000 branches that exist across country.RBI as a Regulatory Body:

The central bank of the country is the Reserve Bank of India (RBI). It was established in April 1935 with a share capital of Rs. 5crores on the basis of the recommendations of the Hilton Young Commission. The share capital was divided into shares of Rs. 100 each fully paid which was entirely owned by private shareholders in the beginning. The Government held shares of nominal value of Rs. 220,000. Reserve Bank of India was nationalized in the year 1949. The Bank was constituted for the need of following:

To regulate the issue of banknotes.

To maintain reserves with a view to securing monetary stability.

To operate the credit and currency system of the country to its advantage.

Functions of Reserve Bank of India:-The Reserve Bank of India Act of 1934 entrust all the important functions of a central bank the Reserve Bank of India.

Bank of Issue:-

Under Section 22 of the Reserve Bank of India Act, the Bank has the sole right to issue bank notes of all denominations. The distribution of one rupee notes and coins and small coins all over the country is undertaken by the Reserve Bank as agent of the Government. The Reserve Bank has a separate Issue Department which is entrusted with the issue of currency notes. Banker to Government:-The second important function of the Reserve Bank of India is to act as Government banker, agent and adviser. The Reserve Bank is agent of Central Government and of all State Governments in India.

Bankers' Bank and Lender of the Last Resort:-The Reserve Bank of India acts as the bankers' bank. According to the provisions of the Banking Companies Act of 1949, every scheduled bank was required to maintain with the Reserve Bank a cash balance equivalent to 5% of its demand liabilities and 2 per cent of its time liabilities in India. By an amendment of 1962, the distinction between demand and time liabilities was abolished and banks have been asked to keep cash reserves equal to 3 per cent of their aggregate deposit liabilities. The minimum cash requirements can be changed by the Reserve Bank of India. The Scheduled banks can borrow from the Reserve Bank of India on the basis of eligible securities or get financial accommodation in times of need or stringency by rediscounting bills of exchange. Since commercial banks can always expect the Reserve Bank of India to come to their help in times of banking crisis the Reserve Bank becomes not only the banker's bank but also the lender of the last resort. Controller of Credit:-The Reserve Bank of India is the controller of credit i.e. it has the power to influence the volume of credit created by banks in India. It can do so through changing the Bank rate or through open market operations. According to the Banking Regulation Act of 1949, the Reserve Bank of India can ask any particular bank or the whole banking system not to lend to particular groups or persons on the basis of certain types of securities. Since 1956, selective controls of credit are increasingly being used by the Reserve Bank. The Reserve Bank of India is armed with many more powers to control the Indian money market. Every bank has to get a license from the Reserve Bank of India to do banking business within India, the license can be cancelled by the Reserve Bank of certain stipulated conditions are not fulfilled. Every bank will have to get the permission of the Reserve Bank before it can open a new branch. Each scheduled bank must send a weekly return to the Reserve Bank showing, in detail, its assets and liabilities. This power of the Bank to call for information is also intended to give it effective control of the credit system. The Reserve Bank has also the power to inspect the accounts of any commercial bank. As supreme banking authority in the country, the Reserve Bank of India, therefore, has the following powers:

(a) It holds the cash reserves of all the scheduled banks.

(b) It controls the credit operations of banks through quantitative and qualitative controls.

(c) It controls the banking system through the system of licensing, inspection and calling for information.

(d) It acts as the lender of the last resort by providing rediscount facilities to scheduled banks.

Supervisory functions:-In addition to its traditional central banking functions, the Reserve bank has certain non-monetary functions of the nature of supervision of banks and promotion of sound banking in India. The Reserve Bank Act, 1934, and the Banking Regulation Act, 1949 have given the RBI wide powers of supervision and control over commercial and co-operative banks, relating to licensing and establishments, branch expansion, liquidity of their assets, management and methods of working, amalgamation, reconstruction, and liquidation. The RBI is authorized to carry out periodical inspections of the banks and to call for returns and necessary information from them.

Promotional functions:-With economic growth assuming a new urgency since Independence, the range of the Reserve Bank's functions has steadily widened. The Bank now performs variety of developmental and promotional functions, which, at one time, were regarded as outside the normal scope of central banking. The Reserve Bank was asked to promote banking habit, extend banking facilities to rural and semi-urban areas, and establish and promote new specialized Financing agencies.

Classification of RBIs functions:-The monetary functions also known as the central banking functions of the RBI are related to control and regulation of money and credit, i.e., issue of currency, control of bank credit, control of foreign exchange operations, banker to the Government and to the money market. Monetary functions of the RBI are significant as they control and regulate the volume of money and credit in the country.

INTRODUCTION TO THE STUDYCustomer satisfaction refers to how satisfied customers are with the products or services they receive from a particular agency. The level of satisfaction is determined not only by the quality and type of customer experiencebut also by the customers expectations.A customer may be defined as someone who has a direct relationship with, or is directly affected by your agency and

Receives or relies on one or more of your agencys services or products.

Customers in human services are commonly referred to as service users, consumers orclients. They can be individuals or groups. An organization with a strong customer service culture places the customer at the centre of service design, planning and service delivery. Customer centric organizations will: Determine the customers expectations when they plan listen to the customer as they design.

Focus on the delivery of customer service activities value customer feedback when they measure performance.

Why is it important?There are a number ofreasons why customer satisfaction is important in Banking Sector:Meetingthe needsofthe customer isthe underlyingrationalefor the existence of community service organizations. Customers have a right to quality services that deliver outcomes.

Organizations that strive beyond minimum standards and exceed the expectations of their customers are likely to be leaders in their sector.

Customers are recognized as key partners in shaping service development and assessing quality of service delivery.

The process for measuring customer satisfaction and obtaining feedback on organizational performance are valuable tools for quality andcontinuous service improvement.HDFC BANKThe Housing Development Finance Corporation Limited (HDFC) was amongstthe first to receive anin principle'approvalfromthe ReserveBank ofIndia(RBI)to set up a bank in the private sector, as part of theRBI's liberalization of the Indian Banking Industry in 1994. The bankwasincorporated in August1994 in thename of 'HDFCBank Limited', withits registeredoffice inMumbai,Inpdia.HDFCBankcommencedoperationsasa Scheduled Commercial Bank in January 1995.HDFC is Indias premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1977, the Corporation has maintained a Consistent and healthy growth in its operations to remain the market leader in mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has developed significant expertise in retail mortgage loans to different market segments and alsohasalargecorporateclientbase foritshousingrelatedcreditfacilities.Withits experience in the financial markets, a strong market reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment.HDFC Bank began operations in 1995 with a simple mission to be a World Class Indian Bank.It realizedthatonly asinglemindedfocusonproductqualityand service excellence would help us get there. Today, the Bank is proud to say that it is well on its way towards that goal.TECHNOLOGY USED IN HDFC BANKIn the era of globalization each and every sector faced the stiff competition from their rivals. And world also converted into the flat from the globe. After the policy of liberalization and RBI initiatives to take the step for the private sector banks, more and more changes are taking the part into it. And there are create competition between the private sector banks and public sector bank. Private sector banks are today used the latest technology for the different transaction of day to day banking life. As we know that Information Technology plays the vital role in the each and every industry and gives the optimum return from the limited resources. Banks are service industries and today IT gives the innovative Technology application to Banking industries.HDFC BANKis the leader in the industries and today IT andHDFC BANKtogether combined they reached the sky. New technology changed the mind of the customers and changed the queue concept from the history banking transaction. Today there are different channels are available for the banking transactions. We can see that the how technology gives the best results in the below diagram. There are drastically changes seen in the use of Internet banking, in a year 2001 (2%) and in the year 2008 (25%). This type of technology gives the freedom to retail customers.HDFC BANKis the very consistent player in the new private sector banks. New private sector banks to withstand the competition from public sector banks came up with innovative products and superior service.There are so many products in hdfc bank. Auto Loan

Loan Against Security

Loan Against Property

Personal loan

Credit card

2-wheeler loan

Commercial vehicles finance

Home loans

Retail business banking

Tractor loan

Construction Equipment Finance Working Capital Finance

Health Care Finance

Education Loan

Gold Loan Deposit Product Saving a/c

Current a/c

Fixed deposit

Demat a/c

Safe Deposit Lockers Mutual Fund

Bonds

Knowledge Centre

Insurance

General and Health Insurance

Equity and Derivatives

Mudra Gold Bar

HDFC BANK PRODUCT ANDCUSTOMER SEGMENTS

PERSONAL BANKING

CardsPayment ServicesAccess To Bank

Credit Card

Debit Card

Prepaid Card

Forex Service

Product & Services

Trade Services

Forex service Branch Locater

RBI Guidelines

NetSafe

Merchant

Prepaid Refill

Billpay

Visa Billpay

InstaPay

DirectPay

VisaMoney Transfer

eMonies Electronic Funds Transfer

Online Payment of Direct Tax

NetBanking

OneView

InstaAlert MobileBanking

ATM

Phone Banking

Email Statements

Branch Network

CorporateSmall and Medium EnterprisesFinancial Institutions and Trusts

Funded Services

Non Funded Services

Value Added Services

Internet Banking

Funded Services

Non Funded Services

Specialized Services

Value added services

Internet BankingBANKS

Clearing Sub Membership

RTGS submembership

Fund Transfer

ATM Tie-ups

Corporate Salary a/c

Tax Collection

Financial Institutions

Mutual Funds

Stock Brokers

Insurance Companies

Commodities

Business

Trusts

WHOLESALE BANKINGBUSINESS STRETEGYHDFC BANKmission is to be "a World Class IndianBank", benchmarking themselves against international standards and best practices in terms of product offerings, technology, service levels, risk management and audit & compliance. The objective is to build soundcustomer franchises across distinct businesses so as to be a preferred provider of banking services for target retail and wholesalecustomersegments, and to achieve a healthy growth in profitability, consistent with the Bank's risk appetite.Bankis committed to do this while ensuring the highest levels of ethical standards, professional integrity, corporate governance and regulatory compliance. Continue to develop new product and technology is the main business strategy of thebank. Maintain good relation with the customers is the main and prime objective of thebank.

HDFC BANKbusiness strategy emphasizes the following: Increase market share in Indias expanding banking and financial services industry by following a disciplined growth strategy focusing on quality and not on quantity and delivering high qualitycustomerservice.

Leverage our technology platform and open scalable systems to deliver more products to more customers and to control operating costs.

Maintain current high standards for asset quality through disciplined credit risk management. Develop innovative products and services that attract the targeted customers and address inefficiencies in the Indian financial sector.

Continue to develop products and services that reduce banks cost of funds. Focus on high earnings growth with low volatility.INSIDEHDFC BAFIVE S, PART OF KAIZENWORK PLACE TRANSFORMATION

Focus on effective work place organization

Believe in

Small changes lead to large improvement

Every successful organization has their own strategy to win the race in the competitive market. They use some technique and methodology for smooth running of business.HDFC BANKalso acquired the Japanese technique for smooth running of work and effective work place organization.

Five S Part of Kaizen is the technique which is used in thebank for easy and systematic work place and eliminating unnecessary things from the work place.

BENEFIT OF FIVE S

It can be started immediately. Every one has to participate.

Five S is an entirely people driven initiatives.

Brings in concept of ownership.

All wastage are made visible.

FIVE S Means: Table 2.2S-1SORTSEIRI

S-2SYSTEMATIZESEITON

S-3SPIC-N-SPANSEIRO

S-4STANDARDIZESEIKETSU

S-5SUSTAINSHITSUKE

(1) SORT : It focuses on eliminating unnecessary items from the work place.

It is excellent way to free up valuable floor space.

It segregates items as per require and wanted.

(2) SYSTEMATIZE :Systematize is focus on efficient and effective Storage method. That means it identify, organize and arrange retrieval. It largely focuses on good labeling and identification practices. Objective: - A place for everything and everything in its place.

(3) SPIC- n - SPAN :

Spic-n-Span focuses on regular clearing and self inspection. It brings in the sense of ownership.

(4) STANDERDIZE :

It focuses on simplification and standardization. It involves standard rules and policies. It establish checklist to facilitate autonomous maintenance of workplace. It assigns responsibility for doing various jobs and decides on Five S frequency.

(5) SUSTAIN: It focuses on defining a new status and standard of organized work place. Sustain means regular training to maintain standards developed under S-4. It brings in self- discipline and commitment towards workplace organization.

Table 2.3

BOX LABEL

For Example1/3/A/6

1 Work Station (1)

3 Drawer (3)

A - Shelf (A)

6 File Number (6)

Table 2.4DEPARTMENT

Welcome Desk

Personal Banker

Teller

Relationship Manager

Branch Manager

Demat

Others

In the HDFC BANK each department has their different color coding apply on the different file. Due to this everyone aware about their particular color file which is coding on it and they save their valuable time. It is a part of Kaizen and also included in the system of the Five S. Logic behind it that, the color coding are always differentiate the things from the similar one.

HUMAN RESOURCESThe Banks staffing needs continued to increase during the year particularly in the retail banking businesses in line with the business growth. Total number of employees increased from 14878 as of March31, 2006 to 21477 as of March 31, 2007. The Bank continues to focus on training its employees on a continuing basis, both on the job and through training programs conducted by internal and external faculty. The Bank has consistently believed that broader employee ownership of its shares has a positive impact on its performance and employee motivation. The Banks employee stock option scheme so far covers around 9000 employees.

RUPEE EARNED - RUPEE SPENT

It is more important for every organization to know about from where and where to spent money. And balanced between these two things rupee earned and rupee spent are required for smooth running of business and financial soundness. This type of watch can control and eliminate the unnecessary spending of business. In this diagram it includes both things from where bankearned Rupee and where to spent.

HDFC BANK earned from the Interest from Advances 51.14 % , Interest from Investment 27.12 %,bank earned commission exchange and brokerage of 15.25 %. These are the major earning sources of the bank. Bank also earned from the Forex and Derivatives and some other Interest Income.Bankspent 39.75 % on Interest Expense, 30.27 % on Operating Expense and 14.58 % on Provision.Bankalso spent Dividend and Tax on dividend, Loss on Investment, Tax. As we discuss above that balancing is must between these two for every organization

RECENT DEVELOPMENT

The combined entity would have a nationwide network of 1167 branches; a strong deposit base of around Rs.1, 22,000 crores and net advances of around Rs.89, 000 crores. The balance sheet size of the combined entity would be over Rs.1, 63,000 crores.

Merger with Centurion Bank of Punjab Limited

On March 27, 2008, the shareholders of the Bank accorded their consent to a scheme of amalgamation of CenturionBankof Punjab Limited with HDFC BankLimited. The shareholders of theBank approved the issuance of one equity share of Rs.10/- each ofHDFC Bank Limited for every 29 equity shares of Re. 1/- each held in CenturionBank of Punjab Limited. This is subject to receipt of Approvals from the ReserveBank of India, stock exchanges and Other requisite statutory and regulatory authorities. The shareholders Also accorded their consent to issue equity shares and/or warrants convertible into equity shares at the rate of Rs.1,530.13 each to HDFC Limited and/or other promoter group companies on preferential basis, subject to final regulatory approvals in this regard. The

Shareholders of the Bank have also approved an increase in the authorized capital from Rs.450 crores to Rs.550 crores.Promoted in 1995 by Housing Development Finance Corporation (HDFC), India's leading housing finance company, wide range of financial products and serviceCOMPANY PROFILE

COMPLETE NAME OF THE COMPANY

The Housing Development Finance Corporation Limited (HDFC Bank Ltd.)

BUSINESSOBJECTIVEThe primary objective ofHDFC is to enhance residential housing stock in the country through the provision of housing finance in a systematic and professional manner, and to promote home ownership. Another objective is to increase the flow of resources to the housing sector by integrating the housing finance sector with the overall domestic financial markets.

ORGANISATIONAL GOALS HDFC's main goals are to (a) Develop close relationships with individual households

(b) Maintain its position as the premier housing finance institution in the country

(c) Transform ideas into viable and creative solutions SWOT ANALYSIS OF HDFC BANKStrengths: -1. Right strategy for the right products.

2. Superiorcustomer servicevs. competitors.

3. Great Brand Image.

4. Products have required accreditation.

5. High degree of customer satisfaction.

6. Good place to work

7. Lower response time with efficient and effective service.

8. Dedicated workforce aiming at making a long-term career in the field.

Weakness: 1. Some gaps in range for certain sectors.

2. Customer service staff needs training.

3. Processes and systems, etc

4. Management cover insufficient.

5. Sectoral growth is constrained by low unemployment levels and competition for staff

Opportunities: 1. Profit margins will be good.

2. Could extend to overseas broadly.

3. New specialist applications.

4. Could seek better customer deals.

5. Fast-track career development opportunities on an industry-wide basis.

6. An applied research center to create opportunities for developing techniques to provide added-value services.

Threats: -1. Legislation could impact.

2. Great risk involveVery high competition prevailing in the industry.

CHAPTER 2REVIEW OF LITRATURE

REVIEW OF LITRATUREOhlson (2000) Financial ratio analysis can help investors in making investment decision and predicting firms future performance. It can also give early warning about the slowdown of firms financial condition

Johnson and Soenen (2006) Research in finance shows that firms characteristics (such as growth, company size, efficiency) can predict the future stock price. analyzed 478 firms in USA during 1982-1998 and concluded that big sized and profitable firms with high level advertising expenditure have better performance in terms of those three measurements.

Hobarth (2009) studied the correlation between financial indicators and firmsperformance of listed firms in USA for 19 years period by using 17 financial indicators and three variables to measure firms performance, namely market performance (measured by changes in stock market value), cash flow performance (dividend per share), and profitability (ROI). The result shows that firms.CHAPTER-3

OBJECTIVES & RESEARCH METHODOLOGY

OBJECTIVES OF THE STUDY To know the customer satisfaction level andtheir perception regarding HDFC Bank To know the customer awareness regarding the Banks products. To know the level of interest of customer regarding the different schemes of bank. To know the preference of customer regarding the extra services.

To know the problems of customer regarding bank.

RESEARCH METHODOLOGY

RESEARCH METHODOLOGYDEFINATION

"Research comprises, defining an redefining, formulating hypothesis or suggested solutions, collecting, organizing, evaluating data, making deductions and reaching conclusions and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis"

"CUFFORD WOODY"

RESEARCH PROBLEM

Here, the research is undertaken to know the level of customer satisfaction. Since the customer is the King so his needs must be given the first priority. That's why customer satisfaction has been chosen as a research problem.

RESEARCH DESIGNS

Personal interview technique was used to conduct the survey. The usual approach was to identify the potential respondent and his cooperation in answering the list of predetermined questions. Regarding the customer survey, I personally sit with our dealing assistant in the bank to look after the whole working procedure of the deposit accounts / collected relevant information regarding the queries and problems of customers of bank.

Personal interview technique also provided information such as customer knowledge, intentions about the various deposits and demographic characteristics such as attitude, opinion and lifestyle of the people.SOURCES OF DATA PRIMARY DATA

SECONDARY DATA

Primary Data All the collection of primary data was done in the personal presence to ensure the completeness of the process. QUESTIONNIARE METHOD:

The communication method ,in effect ,is the method of designing questionnaire with a view to collect the requisite information. The questionnaires can be classified into main four types.1. structured non distinguished

2. structured distinguished

3. Non structured-Non distinguished

4. Non Structured distinguishedA structured questionnaire is a formal list of questions framed so as to get the facts. The in reviewer asks the questions strictly in accordance with a pre arranged order. This classification is based on whether the object or purpose of the survey is revealed to the respondent .Most Marketing Research studies use this type of questionnaire, in the case of a structured

-distinguished Questionniare, the researcher does not disclose the object of the survey. He may not be objective in giving the necessary information and, as such its purpose may be defeat. He is therefore very particular not to divulge the purpose of the investigation

A non-structured questionnaire is one in which the questions are not structured and the order in which they are to be asked from the respondent is left entirely to the researcher. He asks

The questions in the manner in which he deems fit in a particular situation .In fact; he may only have certain main points on which he may develop the question at the time of actual interview. As it will be seen, a non- structured questionnaire id devoid of rigidity and allows considerable freedom to the researcher in choosing the order as well as the specific contents of questions .Normally, unstructured questionnaires are used in explanatory research when some respondents are contacted. It is only subsequently, on the basis of answers received; that a well structured questionnaire is hand only after the explanatory research. Questionniare of this type can be split into two types. when the purpose of the enquiry is disclosed to the respondent, the questionnaire are known as non-structured and non- distinguished while in other cases, the questionnaire are classified as non-structured and disguised questionnaires.Types of Questions

An important aspect in the designing of a questionnaire is to decide which type of questions is to be used. Questions can be classified in various ways. One way of classification is as follows.

Open-ended question.

Dichotomous Question.

Multiple-Choice Questions.Secondary Data The secondary source of information was obtained from the annual reports of the banks, their website, manual of instructions on deposits accounts and brouchers as well. Sources of secondary dataSecondary data can be obtained internally, i.e within the firm. Or externally. i.e from one or more outside agencies.

Internal source of secondary dataInternal source can be classified under four broad categories- accounting records. Sales force reports, miscellaneous report and internal experts.External source of secondary Data:

The external secondary data do not originate in the firm and are obtained from outside sources. Secondary data can be collected from the originating sources or from secondary sources.Generally the originating source of secondary data should be preferred on account of several reasons. First the originating source is more likely to explain the object and procedure of data collection. Government Publications

Non-Government Publication

Syndicated Services

Consumer Research servicesTOOL OF ANALYSISPie charts, Graphs and Percentage tools were used to analyze the collected dataSAMPLING

Sampling Unit- The population in question was the customers of the bank having their account in this bank.

Sampling Size- The survey was conducted in the town of Machhiwara with 100 customers as respondent.SAMPLING PROCEDURE

Convenience sampling was done for the questionnaire to be filled within the bank as it was affected by time availability of customers. It was difficult to use a statistical procedure for sampling.

RESEARCH VARIABLES

1. Rate of interest

2. Fees and other charges

3. Behavior of staff

4. Amount of deposit

5. Existing relationship

6. Procedural aspect.Findings of the study Majority of the customer are satisfied with the bank.

Majority of the customers are aware of services and extra services offered by HDFC Bank. But not all the services.

The majority of the customers found services of the bank are average.

Majority ofthe respondents arefound the bankis average inmaintainingthe good customer relationship.

Majority of the respondent said that they are facing the problem of timeliness and rest are facing problem of customer relationship and infrastructure.

The perception of the majority of the customer regarding the bank is good because majority of the customers are satisfied with the bank and they also recommend the products of the bank.

The most preferable extra service is ATMs and the less preferable services are bills payment, net banking and phone banking.

The majority of customers are more interested in FDs, mutual funds and saving a/cs.

The majority of the customers are satisfied with the dealing of the officials up to some extent.

Main factor that attract customers towards bank is the servicesof the bank.

Services that are most used by the customer are saving a/c, FDs, current a/c and loans.

CHAPTER-4DATA INTERPRETATION AND ANALYSISFigure 3.1

Q.No.1:- service received from the customer service representative?

Source :- Primary dataINTERPRETATION

From the data it can be concluded that the HDFC customers are more satisfied to the service provided by the bank Figure 3.2Q.No.2:- Service received from Supervisors & Management?

Source:- Primary dataINTERPRETATION

It is clear from the above chart that HDFC customers are satisfied but some percent is also dissatisfied with the management because they said the staff should a friendly relation with any type of customer.Figure 3.3Q.No.3:- Do you agree that minimum account limit is not high and easy to maintain?

Source: Primary Data

INTERPRETATION

From the above data it can be concluded that most of the customers are satisfied with the account limit but some percent of customers are dissatisfied with the account limit that means they said its difficult to maintain as AQB charges are very high.Figure 3.4Q.No.4:- How satisfied were you with the following aspects of the branch facility?


INTERPRETATION

From the above data given in a chart we can easily say that majority of the customers of the HDFC bank are satisfied with the facility provided by the branh.they should maintain the same pace of service constantly to attract more and more customers.figure 3.5Q. No.5:- Do you receive statements monthly?


INTERPRETATION

Most of the Customers of HDFC bank said that they are receiving monthly statement from the bank and the rest of the customers said that they dont need of the monthly statement.Figure 3.6Q.No:-6 In terms of your expectation regarding mailed statements?


INTERPRETATION

From the above data it could be easily said that majority of the HDFC customers seeks the benefit of mail service.figure 3.7Q.No.7:- Are you using other facilities provided by the bank, like internet banking, Phone banking etc.


INTERPRETATION

From the above chart we can predict easily that HDFC customers are using other perks provided by the bankfigure 3.8Q.No 8:- Have you applied for credit card?


INTERPRETATION

From the above chart we can clearly say that majority of the HDFC Bank customers seeks the benift of credit card and many more are likely to apply for that it is because of no surcharges and other benefits as compare with the other banks credit card.Figure 3.9Q.No 9:- Service you received from the lending officer(s), how satisfied were you with following?


INTERPRETATION

Majority of the HDFC Bank customers are satisfied with the relation of the lending officer. According of the satisfied customers they said that lending officer is always keen to listen the grievance and complaint of the customers and try to solve it within a specified time.Figure 3.10Q.No.10 Do you feel the procedure to open an account with the bank was difficult?


INTERPRETATION

From the above data it is clearly seen that majority of the HDFC Bank customers are dissatisfied with the procedure of opening of an account it is because it took a lot of time to open an account and the customers has to wait more than a specified timeCHAPTER-5FINDINGS, SUGGESTIONS AND CONCLUSIONSUGGESTIONS AND RECOMMENDATIONS More stress should give on the advertisement and promotional activities.

The Bank should make some efforts to improving good relationship with customer.

The bank makesits procedures less time consuming.

Contract Sales Executive (CSE) should be trained to explain the product features and its value added services to make customers product selection convenient. The bank should make effort to aware the customers about their all the extra services. Contract Sales Executive (CSE) should recommend right product to the right customer so as to ensure a high degree of satisfaction among the customer.

The bank needs to make people aware about their products and the basic benefits they can derive out of it. And also the differential features of its savings account as compared to other banks.70% of the people did not even know about the concept, benefits and features of its saving accounts.

The bank should also target small business unit for whom maintenance of the AQB is not a problem as this segment is not much penetrated.

Though the bank offers free doorstep banking once a day this fact is also not known to many customers or they still do not trust this service whatever the reason the bank can popularize this service to gain an edge over nationalized banks and Co-operative Banks.

The bank should enhance their services according to the needs of the customer.LIMITATIONS OF THE STUDYIt is said, Nothing is perfect and if the quite is true, I am sure that there would be few shortcoming in this project also. Sincere efforts have been made to eliminate discrepancies as far as possible but few would have reminded due to limitations of the study. These are: The research was carried outin a short period.

Limited sample size.

The information given by the respondent might be biased some of them might not be interested to given correct information.

Some of the respondents of thesurvey were unwilling to share information.CONCLUSIONAt the end I would like to conclude that The Indian banking market is growing at an astonishing rate, with Assets expected to reach US$1 trillion by 2010. HDFC bank had a network of 1,142 branches And 3,295 automated teller machines in 528 cities in India. The majority of customers are satisfied. But the bank should target on the rest of the customers who are not satisfied. The customers are aware about the banks services but the Bankshould try to create more awareness among people. HDFC Bank should lay more stress on advertisement, both in print as well as in other media for this purpose. Number of formalities should reduce, as customer feels irritated with lots of formalities and it will save the time of customer and Bank also. BIBLIOGRAPHY Financial Accounting By Jain &Narang

Research Methodology by C.R.Kothari

Annual Reports of Punjab State Cooperative Bank

NEWSPAPPERS & MAGAZINES:- The Economic Times

The Hindustan Times

Times Of India

Indian Today

www.google.com www.pbcooperatives.gov.in www.hdfcbank.com

www.hdfcbank/product/financeScheduled banks in India

Scheduled commercial banks

Nationalized banks

Scheduled co-operative banks

Public sector

Scheduled urban co-operative banks

Old private bank

SBI & its associates

Regional rural bank

Foreign banks

Private sector

Scheduled state co-operative banks

New private bank

Frequently Required

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LABELLING ON FILE

FILE NUMBER

SUBJECT

FROM DATE

TO DATE

OWNER

COLOUR CODING OF FILES

The Reserve Bank of India has approved the scheme of amalgamation of Centurion Bank of Punjab Ltd. With HDFC Bank Ltd. with effect from May 23, 2008.

All the branches of Centurion Bank of Punjab will function as branches of HDFC Bank with effect from May 23, 2008. With RBIs approval, all requisite statutory and regulatory approvals for the merger have been obtained.

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Documents

A Study of Financial Analysis of Hdfc Bank of Poonam Mod