Project Report on Personal Loan1

7/30/2019 Project Report on Personal Loan1

1/55

HDFC BANK LTD (PERSONAL LOAN) 1

CHAPTER-1

INTRODUCTION

1.1 GENERAL INTRODUCTION

The banking sector is the most dominant sector of the financial system in India. Significant

progress has been made with respect to the banking sector in the past liberalization period. The

financial health of the commercial banks has improved manifolds with respect to capital

adequacy, profitability, asset quality and risk management. Further, deregulation has opened new

opportunities for banks to increase revenue by diversifying into investment banking, insurance,

credit cards, depository services, mortgage, securitization, etc. Liberalization has created a more

competitive environment in the banking sector.

Indian Banking Sector:

Banking in India has its origin as early as the Vedic period. It is believed that the

transition from money lending to banking must have occurred even before Manu, the great

Hindu thinker, who has devoted a section of his work to deposits and advances and laid down

rules relating to rates of interest. During the Mogul period, the indigenous bankers played a very

important role in lending money and financing foreign trade and commerce. During the days of

the East India Company, it was the turn of the agency houses to carry on the banking business.

The General Bank of India was the first Joint Stock Bank to be established in the year 1786. The

others that followed were the Bank of Hindustan and the Bengal Bank. The Bank of Hindustan is

reported to have continued till 1906 while the other two failed in the meantime. In the first half

of the 19th century the East India Company established three banks; the Bank of Bengal in 1809,


2/55


the Bank of Bombay in 1840 and the Bank of Madras in 1843. These three banks also known as

Presidency Banks, were independent units and functioned well.

These three banks were amalgamated in 1920 and a new bank, the Imperial Bank of India

was established on 27th January 1921. With the passing of the State Bank of India Act in 1955

the undertaking of the Imperial Bank of India was taken over by the newly constituted State

Bank of India. The Reserve Bank which is the Central Bank was created in 1935 by passing

Reserve Bank of India Act 1934. In the wake of the Swadeshi Movement, a number of banks

with Indian management were established in the country namely, Punjab National Bank Ltd,

Bank of India Ltd, Canara Bank Ltd, Indian Bank Ltd, the Bank of Baroda Ltd, the Central Bank

of India Ltd. On July 19, 1969, 14 major banks of the country were nationalized and in 15 th April

1980 six more commercial private sector banks were also taken over by the government. Today

the commercial banking system in

Types of Banks in India:

In India the banking sector are mainly classified in to four categories are as follows

1.3.1 State Bank of India and its associate banks called the State Bank group

1.3.2 20 nationalized banks

1.3.3 Regional Rural Banks mainly sponsored by Public Sector Banks

1.3.4 Private Sector Banks

1. Old generation private banks

2. New generation private banks

3. Foreign banks in India

4. Scheduled Co-operative Banks


3/55


STATEMENT OF RESEARCH PROBLEM

In todays era of cut throat competition, it is very importance to gain a cutting edge over the

competition, and develop a large market share. This is only possible if there is a large customer

base for the company. The company must gain confidence of the customers and provide services

par excellence.

Therefore, undertaking the project helps in assessing the customer care level of HDFC BANK.

The study is applied descriptive as well as diagnostic in nature. It also tends to find the customer

view about important aspects of the services. At the same time it was intended to find the

customer view about the product and the quality of service improvement. In short this problem

can be defined as:

Are customers satisfied with the services at HDFC?


4/55


STATEMENT OF RESEARCH OBJ ECTIVES

The important research objectives are listed below:

1. To evaluate the expectations of customers towards personal loan with HDFC Bank.

2. To study the importance of customer relationship.

3. To study the impact of customer relationship management on bank customers.

4. To analyze the expectations of banking customers.

5. To analyze the satisfaction level of customers of HDFC bank on the following criteria:

Working environment

Customer care

Bank timings

Overall services

Special schemes provided


5/55


RESEARCH DESIGN AND METHODOLOGY

For any research, research design is of immense importance as it facilitates the smooth sailing of

various research operations. Themethod adopted by the researcher for completing the project is

called Research Methodology. In other words, Research Methodology is simply the plan of

action for a research which explains the detail, how data is to be collected, analyzed and

interpreted.

Data becomes information only when a proper methodology is adopted. Thus we can say

methodology is a tool which processes the data into reliable information.

Scope of the study

As the competition level in the banking sector is ever increasing, it becomes indispensable for

the company (HDFC) to conduct the study on the perception and satisfaction level of its

customers. This study will help the company in making its new strategies to satisfy its customer

in the ways in which he or she wants to be satisfied and to the company its position in the

market.

The study on customer satisfaction has the geographical coverage limited to White Field area and

Indira Nagar only. This study will help the company to know in detail about the customer

perception and their attitude towards the company services and products. The company will gain

the feedback from the customer to improve its products and quality of service.

Methods used for data collection are:

1) Primary Data


6/55


2) Secondary Data

Primary data: Primary data are datas, which are original in nature, and are collected by the

researcher. The method used to collect the primary data was Survey Method. The survey method

included a structured questionnaire that was given to the respondent.

Secondary data: Secondary data are data, which has been collected and compiled in advance for

another needed purpose. Secondary data is an important method to know the present problem

faced by the account holders in the field of HDFC Bank.

Newspapers, articles, books, magazines etc. have been used to prepare the questionnaire.

Tools for data collection

The tool used for data collection is Primarily Questionnaire method. The questions contained:

a) Open-Ended Questions

Where the respondent was given a chance to reply or give suggestions to the Company. This

included Free Responses questions where the respondents were given the freedom to give

suggestions.

b) Close-Ended Questions

Where the respondent was given a lesser chance to reply. This includes Multiple Choice

Questionswhere the respondents were given a number of alternatives.


7/55


Sampling Method Used:

Non probability sampling, i.e., convenient sampling method was used to select a sample of 100

customers among the customers of the HDFC Bank.

Sample Size:

Sample size of 100 customers are taken from the White Field branch of HDFC Bank

Sampling Method Used:

Random sampling method was used to select a sample of 100 customers among the customers of

HDFC Bank.

Scales:

Respondents were given a scale whose positions range from Highly Satisfied to Highly

Dissatisfied

Area of survey:

The area selected to find the satisfactory level was in and around White Field area and Indra

Nagar.


8/55


1.2 INDUSTRY PROFILE

a. Origin and development of the industry

The origin of banking in India is traceable in ancient time through the modern banking hardly

200 years old. The main functions of a bank are to accept deposits and grant loans. There are

evidences of these functions being performed by a section o the community in the Vedic periods.

There are many references of Debt in the Vedic Literature. During the Ramayana and

Mahabharata eras banking, which was a side businesses during the Vedic period, became a full-

time business activity for the people. During the Smriti period, the banking business was carried

on by the members of the Vanish community and Manu speaks of earning through interest as the

business of Vaishyas. He accepted deposits from the public, granted loans against pledges and

personal security, granted simple open loans, acted as bailee for his customers, subscribed to

public loans by granting loans to kings, acted as treasurer and banker to the state and managed

the currency of the country. Indigenous bankers used to maintain a regular system of accounts

and borrowers used to sign the loan deeds.

Money changing came into vogue and the state regulation of the business became more

systematic.

Indigenous bills of exchange came also in use.

The maximum rates of interest were fixed.


9/55


Development from Independence until 1991

At the time of Independence in 1947, the banking system in India was fairly well developed with

over 600 commercial banks operating in the country. However, soon after Independence, the

view that the banks from the colonial heritage were biased in favor of working-capital loans for

trade and large firms and against extending credit to small-scale enterprises, agriculture and

commoners, gained prominence. To ensure better coverage of the banking needs of larger parts

of the economy and the rural constituencies, the Government of India (GOI) created the State

Bank of India (SBI) in 1955. Despite the progress in the 1950s and 1960s, it was felt that the

creation of the SBI was not far reaching enough since the banking needs of small scale industries

and the agricultural sector were still not covered sufficiently. Following the Nationalization Act

of 1969, the 14 largest public banks were nationalized which raised the Public Sector Banks'

(PSB) share of deposits from 31% to 86%. The two main objectives of the nationalizations were

rapid branch expansion and the channeling of credit in line with the priorities of the five-year

plans. To achieve these goals, the newly nationalized banks received quantitative targets for the

expansion of their branch network and for the percentage of credit they had to extend to certain

sectors and groups in the economy, the so-called priority sectors, which initially stood at 33.3%.

The main policy changes were the introduction of Treasury Bills, the creation of money markets,

and a partial deregulation of interest rates. Besides the establishment of priority sector credits

and the nationalization of banks, the government took further control over banks' funds by

raising the statutory liquidity ratio (SLR) and the cash reserve ratio (CRR). From a level of 2%

for the CRR and 25% for the SLR in 1960, both witnessed a steep increase until 1991 to 15%

and 38.5% respectively. In summary, India's banking system was at least until an integral part of


10/55


the government's spending policies. Through the CRR and the SLR more than 50% of savings

had either to be deposited with the RBI or used to buy government securities. Of the remaining

savings, 40% had to be directed to priority sectors that were defined by the government. Besides

these restrictions on the use of funds, the government had also control over the price of the

funds, i.e. the interest rates on savings and loans. This was about to change at the beginning of

the 1990s when a balance-of-payments crisis was a trigger for far-reaching reforms.

Developments after 1991

The 1991 report of the Narasimham Committee served as the basis for the initial banking sector

reforms. In the following years, reforms covered the areas of interest rate deregulation, directed

credit rules, statutory pre-emptions and entry deregulation for both domestic and foreign banks.

The objective of banking sector reforms was in line with the overall goals of the 1991 economic

reforms of opening the economy, giving a greater role to markets in setting prices and allocating

resources, and increasing the role of the private sector.

Statutory pre-emption

The degree of financial repression in the Indian banking sector was significantly reduced with

the lowering of the CRR and SLR, which were regarded as one of the main causes of the low

profitability and high interest rate spreads in the banking system. During the 1960s and 1970s the

CRR was around 5%, but until 1991 it increased to its maximum legal limit of 15%. From its

peak in 1991, it has declined gradually to a low of 4.5% in June 2003. In October 2004 it was

slightly increased to 5% to counter inflationary pressures, but the RBI remains committed to


11/55


decrease the CRR to its statutory minimum of 3%. The SLR has seen a similar development. The

reduction of the CRR and SLR resulted in increased flexibility for banks in determining both the

volume and terms of lending.

Priority sector lending

Besides the high level of statutory pre-emption, the priority sector advances were identified as

one of the major reasons for the below average profitability of Indian banks. The Narasimham

Committee therefore recommended a reduction from 40% to 10%. However, this

recommendation has not been implemented and the targets of 40% of net bank credit for

domestic banks and 32% for foreign banks have remained the same.

Public Sector Banks

At the end of the 1980s, operational and allocation inefficiencies caused by the distorted market

mechanism led to a deterioration of Public Sector Banks' profitability. Enhancing the

profitability of PSBs became necessary to ensure the stability of the financial system. The

restructuring measures for PSBs were threefold and included recapitalization, debt recovery and

partial privatization. Prior to any privatization, the balance sheets of PSBs had to be cleaned up

through capital injections. In the fiscal years 1991/92 and 1992/93 alone, the GOI provided

almost Rs40 billion to clean up the balance sheets of PSBs. Between 1993 and 1999 another


12/55


Rs120 billion were injected in the nationalized banks. In total, the recapitalization amounted to

2% of GDP.

b. Growth and present status of the Industry

The financial sector is in a process of rapid transformation. Reforms are continuing as part of the

overall structural reforms aimed at improving the productivity and efficiency of the economy.

The role of an integrated financial infrastructure is to stimulate and sustain economic growth.

The Reserve Bank of India (RBI) has successfully introduced a regime where interest rates are

more in line with market forces.

Financial institutions have combated the reduction in interest rates and pressure on their margins

by constantly innovating and targeting attractive consumer segments. Banks and trade financiers

have also played an important role in promoting foreign trade of the country.

The Indian banking system has a large geographic and functional coverage. Presently the total

asset size of the Indian banking sector is US$ 270 billion while the total deposits amount to US$

220 billion with a branch network exceeding 66,000 branches across the country. Revenues of

the banking sector have grown at 6 per cent CAGR over the past few years to reach a size of US$

15 billion. While commercial banks cater to short and medium term financing requirements,

national level and state level financial institutions meet longer-term requirements. This

distinction is getting blurred with commercial banks extending project finance.


13/55


Banks, as we all know, are subjected to more intense regulation as compared to the non-financial

firms. Bank regulation is now increasingly getting risk-centric. This process had its origin in the

Cooke Committee or the Basel I proposals which for the first time prescribed a risk-based capital

adequacy framework for banks by recognizing that different counterparties had different risks

and therefore had to be risk-weighted differently

c. Future of the Industry

The interplay between policy and regulatory interventions and management strategies will

determine the performance of Indian banking over the next few years. Legislative actions will

shape the regulatory stance through six key elements:

1) industry structure and sector consolidation

2) freedom to deploy capital

3) regulatory coverage

4) labour reforms and human capital development

5) corporate governance

6) support for creating industry utilities and service bureaus.

Management success will be determined on three fronts:


14/55


1) fundamentally upgrading organizational capability to stay in tune with the changing

market

2) adopting value-creating M&A as an avenue for growth

3) Continuously innovating to develop new business models to access untapped

opportunities.

Changes in regulations and bank capabilities reduce intermediation costs leading to increased

growth, innovation and productivity. Banking becomes an even greater driver of GDP growth

and employment and large sections of the population gain access to quality banking products.

Management is able to overhaul bank organizational structures, focus on industry consolidation

and transform the banks into industry shapers.

The Reserve Bank of India has, in the service of our country, a proven track record and

professionalism, which have lent it considerable credibility - both domestically and globally.

This credibility enables the RBI to confidently carry the reforms forward to credibly maintain

price and financial stability, while enabling self-accelerating equitable growth at elevated levels

The Indian financial sector is ready for consolidation, said 95 per cent of the respondents. Given

the increased competition, and the implementation of Basel II norms in the near future, the

banking industry of the country would be better off with six to seven banks as big as State Bank

of India, said the survey.

Areas that need improvement include diversification of markets beyond big cities, human

resources systems, size of banks, high transaction costs, and infrastructure and labor

inflexibilities. some strategies that can help India achieve a world class banking system are


15/55


consolidation, strict corporate governance norms, and regional expansion within the country and

outside, higher FDI limits and Free Trade Agreements with countries where India has

comparative advantage in banking sector.

India has among the lowest penetration of retail loans in Asia. Though the sector has been

growing at around 15 per cent, there is still a huge opportunity to tap into. Retail loans and

lending to small and medium enterprises will emerge as the two biggest areas of growth in the

future for the Indian banking sector

The total assets in the banking sector today are estimated to be at Rs 17 trillion and total deposits

are estimated at Rs 13 trillion. There are over 290 scheduled banks in the country today, of

which 190 are regional rural banks. There are just 9 Indian private sector banks. Together the

banking industry offers 66,000 branches across India.


16/55


CHAPTER-2

PROFILE OF THE ORGANIZATION

2.1 ORIGIN OF THE ORGANIZATION

HDFC is India's premier housing finance company and enjoys an impeccable track record in

India as well as in international markets. Since its inception in 1977, the Corporation has

maintained a consistent and healthy growth in its operations to remain the market leader in

mortgages.

Its outstanding loan portfolio covers well over a million dwelling units. HDFC has developed

significant expertise in retail mortgage loans to different market segments and also has a large

corporate client base for its housing related credit facilities. With its experience in the financial

markets, a strong market reputation, large shareholder base and unique consumer franchise,

HDFC was ideally positioned to promote a bank in the Indian environment.

2.2 GROWTH AND DEVELOPMENT OF THE ORGANIZATION


17/55


HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over

1400 branches spread over 600 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 centers where its corporate customers are located as well as the need to build a

strong retail customer base for both deposits and loan products.

The Bank also has a network of about over 2000 networked ATMs across these cities. Moreover,

HDFC Bank's ATM network can be accessed by all domestic and international Visa/MasterCard,

Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.

2.3 PRESENT STATUS OF THE ORGANIZATION

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 RBIs liberalization 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.

Promoter

HDFC is Indias premier housing finance company and enjoys an impeccable track record in

India as well as in international markets. Since its inception is 1977, the Corporation has

maintained a consistent and healthy growth in its operations to remain a market leader in

mortgages.


18/55


Business Focus

HDFC Banks mission is to be a World-Class Indian Bank. The Banks aim is to build sound

customer franchises across distinct businesses so as to be the preferred provided of banking

services in the segments that the bank operates in and to achieve healthy growth in profitability,

consistent with the banks risk appetite.

Capital Structure

The authorized capital of HDFC Bank is Rs.450 crore (Rs.45 billion). The paid-up capital is

Rs282 crore (Rs.28.2 billion). The HDFC Group holds 24.2% of the banks equity while about

13.1% of the equity is held by the depository in respect of the banks issue of American

Depository Shares (ADS/ADR Issue)..

Distribution Network


1400 branches spread over 600 cities across the country. All branches are linked on an online

real-time basis. Customers in 90 locations are also serviced through Phone Banking. The Banks



strong retail customer base for both deposits and loan products.


19/55


Management

Mr.Jagdish Kapoor took over as the banks Chairman in July 2001, Prior to this, Mr.Kapoor was

a Deputy governor of the Reserve Bank of India.

The Managing Director, Mr.Aditya Puri, has been a professional banker for over 25 years. And

before joining HDFC Bank in 1994 was heading Citibanks operations in Malaysia.

The Banks Board of Directors is composed of eminent individuals with a wealth of experience

in public policy, administration, industry and commercial banking. Senior executive representing

HDFC are also on the Board Senior banking professionals with substantial experience in India

and abroad head various businesses and functions and report to the Managing Director.

2.4 FUNCTIONAL DEPARTMENTS OF THE ORGANIZATION

The bank has three key business areas:

1. Wholesale Banking Services

Here our target market is primarily large, blue-chip companies and to a lesser extent, emerging

mid-sized corporate. For these corporate, we provide a wide range of services, including working

capital finance, trade services, transactional services, cash management, etc. We are a leading

provider of structured solutions, which combine cash management services with vendor and

distributor finance, for facilitating superior supply chain management for our corporate

customers. We are also recognized as a leading provider of cash management and transactional

banking solutions to mutual funds, stock exchange members and banks.


20/55


2. Retail Banking Services

The objective of the Retail Bank is to provide our target market customers a full range of

financial products and banking services, giving the customer a one-stop window for all his/her

banking requirements. The products are backed by world-class service and delivered to the

customers through the growing branch network, as well as through alternative delivery channels

like ATMs, Phone Banking, Net Banking and Mobile Banking. The HDFC Bank Preferred

program for high net worth individuals, the HDFC Bank Plus and the Investment Advisory

Services programs have been designed keeping in mind needs of customers who seek distinct

financial solutions, information and advice on various investment avenues. We have a wide array

of retail loan products including Auto Loans, Loans against Securities, Personal Loans and

Loans for Two-wheelers.

3. Treasury Operations

Within this business, the bank has three main product areas -

a) Foreign Exchange and Derivatives

b)Local Currency Money Market &

c) Debt Securities and Equities.

With the liberalization of the financial markets in India, corporate need more sophisticated risk

management information, advice and product structures. These are provided through the bank's

Treasury team. The Treasury business is responsible for managing the returns and market risk on

the bank's investment portfolio.


21/55


The above business groups are supported by the following groups:

Audit & Compliance

Credit & Market Risk

Finance, Administration & Legal

Human Resources

Information Technology

Operations

4. Systems & Technology

The Bank uses state-of-the-art technology for both internal and external customers.

a) Banking Applications

In terms of software, the Corporate Banking business is supported by UBS, while the Retail

Banking business by Finware. These world-class systems have been specially customized for

HDFC Bank by i-flex Solutions Ltd. which is a Citigroup company. The Bank also uses various

other systems to support other infrastructure

b).Lotus Notes

Lotus Notes is the system that HDFC bank uses for internal communication.

c) Facilities Management

Wipro is the company appointed to give HDFC Bank the on-site support required at different

locations / cities.


22/55


2.5 ORGANIZATION STRUCTURE AND ORGANIZATION CHART

HDFC Bank Board of Directors comprises of eminent individuals with a wealth of experience in

public policy, administration, industry and commercial banking. Senior executives representing

HDFC are also on the Board.

ORGANIZATION CHART

Chairman

Managing Director & CEO

Joint Managing Director

(Domestic Banking)

Joint Managing Director

(International Business)

Executive Director

(Corporate

Center)

Executive Director

(Wholesale

Banking)

Executive Director

(Project Finance)

Executive Director

(Retail Banking)


23/55


Sr. General Managers

SALES SALES SALESSales

TEAM

LEADER

BDE 1 BDE 2

TEAM

LEADER

TEAM

LEADER

TEAM

LEADER

BDE 1 BDE 2BDE 1 BDE 2BDE 1 BDE 2


24/55


PRODUCT AND SERVICE PROFILE OF THE ORGANIZATION

Products of HDFC Bank includes the following:

Deposits:

1) Savings Account

These accounts are primarily meant to inculcate a sense of saving for the future, accumulating

funds over a period of time. Whatever your occupation, we are confident that you will find the

perfect banking solution. Open an account in your name or register for one jointly with a family

member today. Some of its features are:

Debit-cum-ATM card

Auto Invest Account

Internet Banking

Phone banking

Anywhere Banking

Standing Instruction

Nomination facility

Doorstep service

Mobile banking

Monthly free E-Mail statement

3) Personal Loan


25/55


Loans up to Rupees one million for any purpose.

Flexible Repayment Options ranging from 12 to 48 months.

Repayment through Easy Monthly Installments (EMIs).

Low Rate of Interest

Hassle free loans - No guarantor/security/collateral required

Speedy loan approval

Service at the customer's doorstep

Further, there are additional privileges for HDFC Bank account holders like:

Special rates of interest.

For existing Auto Loan customers with a clear repayment of 12 months or more from

even any of the approved financiers of HDFC Bank, a hassle free personal loan without

income documentation can be obtained.

For existing HDFC Bank Personal Loan customer with a clear repayment of 12 months or

more, personal loan can be enhanced.

4) Senior Citizen Services


26/55


5) Fixed deposits

Wide range of tenures

Choice of investment plans

Partial withdrawal permitted

Safe custody of fixed deposit receipts

Auto renewal possible

Loan facility available

6) Easy deposit

7) Recurring deposit

Encourage savings

High interest rates of interest

Loans against deposits available

Non-applicability of tax deduction at source (TDS)

8) Special savings account

Bank @ campus

9) Direct Banking Account

10) TaxSaver Fixed Deposits


27/55


11) Roaming Current Account

12) Young Stars or Kids Account

13) Savings Max Account / Regular Account / Plus Account

14) D-Mat Account

15) Family Account

16) NRI account

SERVICES:

a) Retail Banking Services

The objective of the Retail Bank is to provide its target market customers a full range of financial

products and banking services, giving the customer a one-stop window for all his/her banking

requirements. The products are backed by world-class service and

delivered to the customers through the growing branch network, as well as through alternative

delivery channels like ATMs, Phone Banking, Net Banking and Mobile Banking.


28/55


b) Wholesale Banking Services

Here our target market is primarily large, blue-chip companies and to a lesser extent, emerging

mid-sized corporate. For these corporate, we provide a wide range of services, including working

capital finance, trade services, transactional services, cash management, etc. We are a leading

provider of structured solutions, which combine cash management services with vendor and

distributor finance, for facilitating superior supply chain management for our corporate

customers. We are also recognized as a leading provider of cash management and transactional

banking solutions to mutual funds, stock exchange members and banks.

MARKET PROFILE OF THE ORGANIZATION

HDFC is India's premier housing finance company and it is the largest private bank in India.

HDFC Bank enjoys an impeccable track record in India as well as in international markets. Since

its inception in 1977, the Corporation has maintained a consistent and healthy growth in its

operations to remain the market leader in mortgages. Its outstanding loan portfolio covers well

over a million dwelling units. HDFC has developed significant expertise in retail mortgage loans

to different market segments and also has a large corporate client base for its housing related

credit facilities. With its experience in the financial markets, a strong market reputation, large

shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a

bank in the Indian environment.

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


29/55


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.

In a milestone transaction in the Indian banking industry, Times Bank Limited (another new

private sector bank promoted by Bennett, Coleman & Co./Times Group) was merged with

HDFC Bank Ltd., effective February 26, 2000. As per the scheme of amalgamation approved by

the shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank

received 1 share of HDFC Bank for every 5.75 shares of Times Bank. The acquisition added

significant value to HDFC Bank in terms of increased branch network, expanded geographic

reach, enhanced customer base, skilled manpower and the opportunity to cross-sell and leverage

alternative delivery channels.


1400 branches spread over 600 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



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 centers where the NSE/BSE has

a strong and active member base.


30/55



31/55


CHAPTER 4

STUDY OF SELECTED RESEARCH PROBLEM

ANALYSIS OF DATA

The study on customer satisfaction has the geographical coverage limit to White Fieldarea only.

This study will help the company to know in detail about the customer perception and their

attitude towards the company services and products. The company will gain the feedback from

the customer to improve its products and quality of service

1) TABLE SHOWING DISTRIBUTION OF AGE

AGE GROUP NO. OF RESPONDENTS PERCENTAGE

2030 22 22%

3040 43 43%

40 AND ABOVE 35 35%

TOTAL 100 100%


32/55


ANALYSIS

The above table shows that 22% of the respondents fall under the age group of 2030 years,

43% of the respondents fall under age group of 30 40 years and 35% of the respondents

belonging to age group of 40 and above years.

INFERENCE

Hence it clearly shows that he majority of the respondents fall under the age group of 3040

years i.e. 43%.


33/55


2) TABLE SHOWING DISTRIBUTION OF GENDER

ANALYSIS

The table shows that there are 57% of male respondents and 43% of female respondents

INFERENCE

Thus the table clearly shows that the majority of the respondents are male i.e. 57%.

GENDER NO. OF RESPONDENTS PERCENTAGE

FEMALE 43 43%

MALE 57 57%

TOTAL 100 100%


34/55


3). THE DISTRIBUTION OF THE MONTHLY NET TAKE HOME SALARY

MONTHLY HOUSEHOLD

INCOME

NO. OF RESPONDENTS PERCENTAGE

LESS THAN RS 15,000 0 0%

RS 15,000RS 30,000 23 23%

MORE THAN RS 30,000 77 77%

TOTAL 100 100%


35/55


ANALYSIS

The above table shows that there are no respondents who have a monthly net take home salary

of less than Rs 15,000; there are 23% of the respondents who fall under Rs 15,000 Rs 30,000

household income and 77% fall under the more than Rs 30,000 net take home salary category.

INFERENCE

The table clearly shows that the majority of the respondents have more than Rs 20,000 of

monthly net take home salary that is 77%

4).THE IMPORTANCE OF THE INTEREST RATE ACCORDING TO THE

CUSTOMERS


36/55


IMPORTANCE NO.OF RESPONDENTS PERCENTAGE

VERY IMPORTANT 65 65%

SOMEWHAT IMPORTANT 20 20%

NOT SO IMPORTANT 15 15%

NOT AT ALL IMPORTANT 0 0%

TOTAL 100 100%

ANALYSIS

The above table relates that the 65% of the respondents think its extremely important for the

interest rate to be convenient, 20% of the respondents think it is somewhat important, 15% of the

respondents think its not so important while none of them think its not at all important.

INFERENCE

Table number 7 clearly shows that majority of the customers think that it is very important that

the interest rate are convenient i.e. 65%.


37/55


5) THE IMPORTANCE OF PROCESSING FEES AND TIME IN HDFC BANK

ACCORDING TO CUSTOMRES

VARAIBLES RESPONDENTS PERCENTAGE

HIGHLY SATISFIED 10 10%

SATISFIED 62 62%

NEUTRAL 23 23%

DISSATISFIED 5 5%

HIGHLY DISSATISFIED 0 0%

TOTAL 100 100%

ANALYSIS


38/55


From the above table it can be analyzed that out of 100 respondents 10% are highly satisfied

with the processing fees & time of the bank, 62% are satisfied, 23% are neutral, 5% are

dissatisfied and none are highly dissatisfied.

INFERENCE

Therefore, it can be inferred that almost 5% of the respondents are not happy with the processing

fees & time.This indicates that the customers are not satisfied with the processing fees & time

7)TABLE SHOWING SIZE OF THE EASY MONTHLY INSTALLMENT


39/55


IMPORTANCE NO. OF RESPONDENTS PERCENTAGE

VERY IMPORTANT 30 30%

SOMEWHAT

IMPORTANT

45 45%

NOT SO IMPORTANT 20 20%

NOT AT ALL

IMPORTANT

5 5%

TOTAL 100 100%

ANALYSIS

The table shows that according to 30% of the respondents it is very important that the size of the

EMI is appropriate, 45% of the respondents think it is somewhat important, 20 % of the

respondents said it is not so important while 5% of the respondents replied that it is not at all

important.

INFERENCE

Hence the table clearly shows that the majority of the respondents think it is somewhat important

for the EMI to be appropriate.


40/55


7) IMPORTANCE OF DEVELOPMENT EXECUTIVE IN HDFC BANK WITH REGARD

TO PERSONAL LOAN ACCORDING TO CUSTOMER

VARIABLES RESPONDENTS PERCENTAGE

HIGHLY SATISFIED 15 15%

SATISFIED 55 55%

NEUTRAL 20 20%

DISSATISFIED 10 10%

HIGHLY DISSATISFIED 0 0%

TOTAL 100 100%


41/55


ANALYSIS

The above table shows that out of 100 respondents,15 % of the respondents are highly satisfied

with the development executive of HDFC Bank, 555 are satisfied, 20% are neutral while 10%

are dissatisfied with the customer care and none are highly dissatisfied..

INFERENCE

Development Executive is of immense importance in todays world and a key tool for an

organization in order to gain new customers and boost up sales and market share. Therefore,

HDFC Bank should work towards the dissatisfied customerby regular training to its employees

or making the procedure more customer friendly.


42/55


SUMMARY OF FINDINGS

1. Most of the customers of the bank are satisfied, but there is a minority of customers who

are still looking for improvement.

2. The bank has strong customer relationship, whether it is customer service or post sales

service, HDFC Bank serves the customer well.

3. However the bank timigs are not very convenient for the customers. Hence, flexible

banking hours shoud be adopted to meet customers requirements.

4. When it comes to the processing fees & time , it shows mix response. More customers

would prefer a change in the. processing fees & time

5. The only draw back that HDFC bank has in compare to other banks is only regarding

the interest rates which is considered to be low in comparison to other bank. While most

of the banks charges high monthly installment for the repayment of loan with compare to

HDFC bank.

6. Enable customers to get personal loan easily and provide variety of other banking scheme

to the personal loan customer .


43/55


CHAPTER 5

SUMMARY AND CONCLUSION

5.1 SUMMARY OF LEARNING EXPERIENCE

My experience with HDFC Bank as a Business Develoment Executive during the three months

internship period has helped me to a great extent in dealing with customers and with their tastes

and expectations.

With the changing market scenario and increased competition, it is very important to treat the

customer as the king and to keep him happy When it comes to sales, customer relationship plays

a significant role. To cater to each customer is an art to learn. Having gone through continuous

interactions with customers and working for the sales team in the bank, I have learnt that it is

very important to understand the needs and requirements of the customer and accordingly sell

him the product.

Working with HDFC Bank was a good learning opportunity which enabled me to learn about its

wide range of products and services. The project has helped me to have an understanding of

customer requirements and of the service industry.


44/55


5.2 CONCLUSION AND RECOMMENDATIONS

Conclusion

It is important in todays competitive world to create loyal customers and retain them. Hence

customer service is an area where every organization put emphasis on. The quality of products

along with the quality of services influences customers to choose a particular bank.

HDFC Bank, as its punch line says, we understand your world, is the largest private sector

bank in India which has shown tremendous growth in the past couple of years .Its customer

centric focus and aim to satisfy every customer with wide range of products and services as

mentioned in the report has helped the bank to have an edge above its competitors.

Recommendations

1. The processing time which is now 10 days , must be reduce to 9 days ,so more and more

people can apply for the urgent loan for unforeseen calamities

2. Scheduling regular promotional activities like canopies, company visit etc. to know the more

and more people about the loan facilities based on their salary i.e. Personal Loan.

3. More number of scheme is provided to the current salary holder cutomer with HDFC Bank

with different features .


45/55


4. Proper and general instruction about the product with latest changes and working provides to

the executive .

5. The interest rates made to be more liberal to cutomer to customer on the basis of their salary

and company profile .

6. The process of funding the loan needs to be more simple so that the customer can understand

the product according to their needs.

7. There should be more executive especially inbig and crowded branches in the main part of the

town.

8. Special schemes should be provided for small scale sector business employees as well new

package of offers and discounts should be provided for high network people


46/55


ANNEXURE

5.4 Questionnaire

1. Name ______________________________________

2. Age

20-30

30-40

40

Documents

Project Report on Personal Loan1