PERCEPTION TOWARDS CURRENT ACCOUNTS OF HDFC BANK

A Project Report

On

“TO KNOW THE CUSTOMER’S SATISFACTION LEVEL AND THEIR PERCEPTION TOWARDS CURRENT ACCOUNTS

OF HDFC BANK”

Submitted in partial fulfillment of the requirement for the award of degree of

Master of Business Administration

Session 2012-2014

Under the supervision of: Submitted by:

Mr. Yoginder Kataria Ankur Mittal

(Associate Professor) MBA 2nd Year

Roll No. 12211

Panipat Institute of Engineering & Technology, Samalkha

Affiliated to K

ACKNOWLEDGEMENT

I would also like to thank Mr. Yoginder Kataria (Associate Professor) in P.I.E.T for his

support to carry this project and I am also thankful to Mrs. Priyanka Sehgal (HOD,

Management Studies) in P.I.E.T for her support.

Last but not the least; I would like to thank all the Department Heads who participated in the

project without which the project would have been nothing in terms of value and worth. I

sincerely hope my work would come up to the expectations of all those who are concerned and

will be of some practical help

Ankur Mittal

12211

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EXECUTIVE SUMMARY

In accordance with the resource project the topic chosen identify the corporate target market

(current account) and Costumers perception of in Panipat city. In this research the beginning of

the project is the assistance of various tools, techniques and information belong to the subject.

This research has been identified that there are no dependent and in depended various which

effecting the topic and problem relatively. The problem identified the corporate target market

(current account) and

Costumer’s perception in Panipat city and effect a particular consumer has been described in this

research.

Hence to observe the problem related response according to the questionnaire many of the

people queered. It is close ended question asked so the respondent field for the cognizance which

is beneficial for me and company.

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TABLE OF CONTENTS

Serial No. Index of Contents Page. No.

1. Chapter- 1 Introduction

The Industry

Background

SWOT

COMPETITION INFORMATION

Introduction of The Topic

06-45

06-09

10-17

18-19

19-22

23-44

2. Chapter -2 Literature Review 45-48

3. Chapter -3 Research Methodology

Objectives

Research Design

Collection Of Data

Tools for analysis

Limitation

49-53

50

50-51

51

52

53

4. Chapter- 4 Analysis And Interpretation

4.1: Customer Profiles of Surveyed Respondents.

4.2 Time period of stay in HDFC Bank

4.3 Major attraction of the bank

4.4 HDFC Bank is providing satisfaction to customers.

54-65

55

56

57

58

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4.5 Product of current account you prefer the most.

4.6 current account recommendation of HDFC Bank to others

4.7 Knowledge about extra services being provided by the bank.

4.8 Extra benefits asked by respondents from bank

4.9 Prompt services whenever visit to the branch.

4.10 Preference of other bank over HDFC Bank.

4.11 Overall satisfaction rating with HDFC Bank current account.

59

60

62

63

64

65

5. Chapter- 5 Findings, Conclusion & Suggestions

Findings and Learning

Suggestions

Conclusion

66-81

67-68

69

70

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6. Bibliography 71-72

7. Annexure 73-76

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Chapter - 1

Company

Introduction

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INTRODUCTION

1. INTRODUCTION TO BANKING INDUSTRY

1.1 BANK

Finance is the life blood of trade, commerce and industry. Now-a-days, bank money acts as the

backbone of modern business. Development of any country mainly depends upon the banking

system.

The term bank is derived from the French word Banco which means a Bench or Money

exchange table.

A bank is a financial institution which deals with deposits and advances and other related

services. It receives money from those who want to save in the form of deposits and it lends

money to those who need it.

Oxford Dictionary defines a bank as "an establishment for custody of money, which it pays out

on customer's order."

1.1.1Features of a Bank:

1. Dealing in Money

Bank is a financial institution which deals with other people's money i.e. money given by

depositors.

2. Individual / Firm / Company

A bank may be a person, firm or a company. A banking company means a company which is in

the business of banking.

3. Acceptance of Deposit

A bank accepts money from the people in the form of deposits which are usually repayable on

demand or after the expiry of a fixed period. It gives safety to the deposits of its customers. It

also acts as a custodian of funds of its customers.

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4. Giving Advances

A bank lends out money in the form of loans to those who require it for different purposes.

5. Payment and Withdrawal

A bank provides easy payment and withdrawal facility to its customers in the form of cheques

and drafts, It also brings bank money in circulation. This money is in the form of cheques, drafts,

etc.

6. Agency and Utility Services

A bank provides various banking facilities to its customers. They include general utility services

and agency services.

7. Profit and Service Orientation

A bank is a profit seeking institution having service oriented approach.

8. Connecting Link

A bank acts as a connecting link between borrowers and lenders of money. Banks collect money

from those who have surplus money and give the same to those who are in need of money.

9. Banking Business

A bank's main activity should be to do business of banking which should not be subsidiary to

any other business.

10. Name Identity

A bank should always add the word "bank" to its name to enable people to know that it is a bank

and that it is dealing in money.

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1.2INTRODUCTION TO HDFC BANK

1.2.1 HDFC BANK

HDFC Bank Limited is a major Indian financial services company based in India, incorporated

in August 1994, after the Reserve Bank of India allowed establishing private sector banks. The

Bank was promoted by the Housing Development Finance Corporation, a premier housing

finance company (set up in 1977) of India. HDFC Bank has 1,725 branches and over 5,000

ATMs, in 780 cities in India, and all branches of the bank are linked on an online real-time basis.

The headquarters of HDFC Bank is in Mumbai, India. And it’s area served is worldwide.

Organizational 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.

d) Provide consistently high returns to shareholders.

e) To grow through diversification by leveraging off the Existing client

1.2.2 Subsidiaries of HDFC Bank consist of:

1. HDFC Bank

2. HDFC Mutual Fund

3. HDFC Standard Life Insurance Company

4. HDFC Realty

5. HDFC Chubb General Insurance Company Limited.

6. Credit Information Bureau (India) Limited

7. Other Companies Co – Promoted by HDFC

a) HDFC Trustee Company Ltd.

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b) GRUH Finance Ltd

c) HDFC Developers Ltd.

d) HDFC Venture Capital Ltd.

e) HDFC Securities Ltd

f) HDFC Holding Ltd.

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HDFC BANK LIMITED – Background of HDFC Bank

BACKGROUND

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 RBI's 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 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, strong market reputation, large shareholder base and unique consumer

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

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BUSSINESS 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.

AMALGAMATION OF TIMES BANK & CENTURION BANK OF

PUNJAB WITH HDFC BANK

On May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC Bank was

formally approved by Reserve Bank of India to complete the statutory and regulatory approval

process. As per the scheme of amalgamation, shareholders of CBOP received 1 share of HDFC

bank for every 29 shares of CBOP.

The merged entity will have a strong deposit base of around Rs1, 22,000 crore and net advances

of around Rs89, 000 crore. The balance sheet size of the combined entity would be over Rs1,

63,000 crore. The amalgamation added significant value to HDFC Bank in terms of increased

branch network, geographic reach, and customer base, and a bigger pool of skilled manpower.

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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. This was the first merger of two private banks in

the New Generation Private Sector Banks. 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.

DISTRIBUTION NETWORK

HDFC Bank is headquartered in Mumbai. As on December 31, 2009, the Bank has a network of

1725 branches in 771 cities across India. All branches are linked on an online real-time basis.

Customers in over 500 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 centres where the NSE / BSE

have a strong and active member base.

The Bank also has a network of 3898 ATMs across India. 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.

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MANAGEMENT structure of HDFC Bank

Name Designation

C M Vasudev Chairman / Chair Person

Harish Engineer Executive Director

Renu Karnad Director

Pandit Palande Director

Bobby Parikh Director

Aditya Puri Managing Director

Paresh Sukthankar Executive Director

Ashim Samanta Director (up to 18.11.2012)

Partho Datta Director

Anami N Roy Director

Mr. Keki Mistry Director

Vijay Merchant Director (appointed on 14.03.2013)

TECHNOLOGY

HDFC Bank operates in a highly automated environment in terms of information technology and

communication systems. All the bank's branches have online connectivity, which enables the

bank to offer speedy funds transfer facilities to its customers. Multi-branch access is also

provided to retail customers through the branch network and Automated Teller Machines

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(ATMs).

The Bank has made substantial efforts and investments in acquiring the best technology

available internationally, to build the infrastructure for a world class bank. In terms of core

banking software, the Corporate Banking business is supported by Flexcube, while the Retail

Banking business by Finware, both from i-flex Solutions Ltd. The systems are open, scaleable

&web-enabled.

The Bank has prioritised its engagement in technology and the internet as one of its key goals

and has already made significant progress in web-enabling its core businesses. In each of its

businesses, the Bank has succeeded in leveraging its market position, expertise and technology

to create a competitive advantage and build market share.

BUSINESS PROFILE

HDFC Bank caters to a wide range of banking services covering commercial and investment

banking on the wholesale side and transactional / branch banking on the retail side. The bank has

three key business segments:

a) Wholesale banking

The Bank's target market is primarily large, blue chip manufacturing companies in the Indian

corporate sector and to a lesser extent, small & mid-sized corporates and agro-based businesses.

For these customers, the Bank provides a wide range of commercial and transactional banking

services, including working capital finance, trade services, transactional services, cash

management, etc. The bank is also a leading provider of structured solutions, which combine

cash management services with vendor and distributor finance for facilitating superior supply

chain management for its corporate customers. Based on its superior product delivery / service

levels and strong customer orientation, the Bank has made significant inroads into the banking

consortia of a number of leading Indian corporates including multinationals, companies from the

domestic business houses and prime public sector companies. It is recognized as a leading

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provider of cash management and transactional banking solutions to corporate customers, mutual

funds, stock exchange members and banks.

b) Treasury

Within this business, the bank has three main product areas - Foreign Exchange and Derivatives,

Local Currency Money Market & Debt Securities, and Equities. With the liberalization of the

financial markets in India, corporates need more sophisticated risk management information,

advice and product structures. These and fine pricing on various treasury products are provided

through the bank's Treasury team. To comply with statutory reserve requirements, the bank is

required to hold 25% of its deposits in government securities. The Treasury business is

responsible for managing the returns and market risk on this investment portfolio.

c) Retail Banking

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

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

like ATMs, Phone Banking, NetBanking and Mobile Banking.

Mission and Business Strategy

Our mission is to be "a World Class Indian Bank", benchmarking ourselves against international

standards and best practices in terms of product offerings, technology, service levels, risk

management and audit & compliance. The objective is to build sound customer franchises across

distinct businesses. Our business strategy emphasizes the following:

Increase our market share in India’s expanding banking and financial services industry

by following a disciplined growth strategy focusing on quality and not on quantity and

delivering high quality customer service.

Leverage our technology platform and open scale able systems to deliver more products

to more customers and to control operating costs.

Maintain our current high standards for asset quality through disciplined credit risk

management.

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Develop innovative products and services that attract our targeted customers and address

inefficiencies in the Indian financial sector.

Continue to develop products and services that reduce our cost of funds.

Focus on high earnings growth with low volatility.

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PRODUCTS AND SERVICES

1) PERSONAL BANKING SERVICES

A) Account s & Depos i t s

Savings Account

• Regular Savings Account

• Savings plus Account

• Savings Max Account

• Senior Citizens Account

• Payroll Salary Account

• Regular Salary Account

• Kid's Advantage Account

• Pension Saving Bank Account

• Family Savings Account

Current Account

• Plus Current Account

• Trade Current Account

• Premium Current Account

• Regular Current Account

• Apex Current Account

• Max Current Account

B) Loans

• Personal Loans

• Home Loans

• Two Wheeler Loans

• New Car Loans

• Overdraft against C

• Loan against Securities

• Loan against Property

• Commercial Vehicle Finance

• Working Capital Finance

• Construction Equipment Finance

C) Investments & Insurance

• Mutual Funds

• Insurance

• Bonds

• Financial Planning

• Knowledge Centre

• Equities & Derivatives

D) Payment Services

• Net Safe

• Prepaid Refill

• Bill Pay

• Direct Pay

• Visa Money Transfer

• E-Monies Electronic Funds Transfer

• Excise & Service Tax Payment

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E) Access Your Bank - One View

• Instar Alerts

• Mobile Banking

• ATM

• Phone Banking

2) WHOLESALE BANKING SERVICES

• Funded Services

• Non Funded Services

• Value Added Services

• Internet Banking

• Clearing Sub-Membership

• RTGS – sub membership

• Fund Transfer

• ATM Tie-ups

• Corporate Salary a/c

• Tax Collection

• Financial Institutions

• Mutual Funds

• Stock Brokers

• Insurance Companies

• Commodities Business

• Trusts

3) NRI BANKING SERVICES

• Rupee Saving a/c • Rupee Current a/c

• Rupee Fixed Deposits • Foreign Currency Deposits

• Accounts for Returning Indians

4) PAYMENT SERVICES

• Net Safe • Bill Pay

• Insta Pay • Direct Pay

• Visa Money • Online Donation

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SWOT

1.2.4 SWOT ANALYSIS

STRENGTH:

1) Right strategy for the right products.

2) Superior customer service vs. competitors.

3) Great brand image.

4) High degree of customer satisfaction.

WEAKNESSES:

1) Some gaps in range for certain sectors.

2) Customer service staff needs training.

3) Sectorial 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) Could seek better customer deal.

4) An applied research center to create opportunities for developing techniques to provide value-

added services.

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THREATS:

1) Legislation could impact.

2) Great risk involved.

3) Very high competition prevailing in the market.

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1.2.5 COMPETITION INFORMATION

HDFC Bank’s main competitors are as follows:-

1) Axis Bank Ltd.

Axis Bank Limited, formerly UTI Bank, is a financial services firm that had begun operations in

1994, after the Government of India allowed new private banks to be established. The Bank's

Registered Office is at Ahmadabad and its Central Office is located at Mumbai. Axis Bank one

of the largest private sector financer in India for Agriculture loans.

2) ICICI Bank Ltd.

ICICI Bank Limited also known as Industrial Credit and Investment Corporation of India Bank is

the second largest financial service company headquartered at Mumbai, India. The Bank has a

network of 2,533 branches and 6,601 ATMs in India, and has a presence in 19 countries,

including India. ICICI Bank was established in 1994 by ICICI Limited, an Indian financial

institution, as a wholly owned subsidiary.

3) Kotak Mahindra.

The Kotak Mahindra group is a financial organization established in 1985 in India. It was

previously known as the Kotak Mahindra Finance Limited, a non-banking financial company. In

February 2003, Kotak Mahindra Finance Ltd was given the license to carry on banking business

by the Reserve Bank of India (RBI). Kotak Mahindra Finance Ltd. is the first company in the

Indian banking history to convert to a bank. Today it has more than 20,000 employees and Rs.

10,000 crore in revenue.

Page | 27

4) State Bank of India

State Bank of India (SBI) (is the largest Indian banking and financial services company (by

turnover and total assets) with its headquarters in Mumbai, India. It is state-owned. SBI provides

a range of banking products through its vast network of branches in India and overseas, including

products aimed at non-resident Indians (NRIs). The State Bank Group, with over 16,000

branches, has the largest banking branch network in India. SBI has 14 Local Head Offices and 57

Zonal Offices that are located at important cities throughout the country. It also has around 130

branches overseas.

5) Yes Bank Ltd.

YES Bank Limited is an Indian Bank, engaged in providing a range of banking and financial

services. The Bank’s business segments include Treasury, Corporate/Wholesale Banking, and

Retail Banking, Corporate Finance, Transaction Banking and a host of other Banking services. It

was founded by Rana Kapoor and his partner (Late) Ashok Kapur, with the duo holding a

collective financial stake of 27.16%.

6) IndusInd Bank

IndusInd Bank, which commenced operations in 1994, caters to the needs of both consumer and

corporate customers. Its technology platform supports multi-channel delivery capabilities. As on

June 30, 2013, IndusInd Bank had 530 branches, and 1003 ATMs spread across 380

geographical locations of the country. The Bank also has representative offices in London and

Dubai. The Bank believes in driving its business through technology. It enjoys clearing bank

status for both major stock exchanges - BSE and NSE - and major commodity exchanges in the

country, including MCX, NCDEX, and NMCE. IndusInd Bank on April 1, 2013 was included in

the NIFTY 50 benchmark index. IndusInd Bank also offers DP facilities for stock and

commodity segments.

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7) ING Vysya

ING Vysya Bank Ltd is a global financial institution of Dutch origin offering banking,

investments, life insurance and retirement services. More than 84,000 ING employees server

over 61 million private, corporate and institutional customers in over 40 countries in Europe,

North America, Latin America, Asia and Australia. We draw on our experience and expertise,

our commitment to excellent service and our global scale to meet the needs of a broad customer

base, comprising individuals, families, small, businesses, large corporations, institutions and

governments.

8) J&K

J&K Bank functions as a universal bank in Jammu & Kashmir and as a specialised bank in the

rest of the country. It is also the only private sector bank designated as RBI’s agent for banking

business, and carries out the banking business of the Central Government, besides collecting

central taxes for CBDT. The J&K Bank is rated P1, indicating the highest degree of safety by

Standard & Poor and CRISIL. J&K Bank operates on the principle of 'socially empowering

banking' and seeks to deliver innovative financial solutions for household, small and medium

enterprises.

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Introduction to the Topic

Meaning of Current Account

Businessmen who have a high number of regular transactions with the bank open current bank

account. It also includes deposits, withdrawals & contra transactions. It is also known as

demand deposit account.

Type of Current Account of HDFC Bank

There are many types of current account of HDFC Bank, namely Regular Current Account,

Premium Current Account, Trade Current Account, Plus Current Account, Max Current

Account, Ultimo Current Account, Supreme Current Account, Apex Current account, Ezee

Current Account, Agri Current Account, Current Account for Hospitals and Nursing Homes,

Current Account for Professionals, Merchant Advantage Plus Current account, Merchant

Advantage Current account, Flexi Current Account, Institutional Current Account and HDFC

Bank of Panipat is offering most of them.

Regular Current Account

A Current account is ideal for carrying out day-to-day business transactions. With the HDFC

Bank Regular Current Account, you can access your account anytime, anywhere, pay using

payable at par cheques or deposit cheque at any HDFC bank branch. It also facilitates FREE

NEFT transactions & FREE RTGS collections for faster collections in your account. Regular

Current Account requires you to maintain an average quarterly balance of only Rs. 10,000.

Page | 30

Features and Benefits :

1) Convenient inter-city banking :

Free anywhere cheque payment

2) Free payments and collections through NEFT

3) Free RTGS collection. RTGS payment @ Rs.25/- per transaction

4) Inter-city Account to accounts funds transfer between HDFC Bank accounts at a

nominal charge of Rs.15/- per transactions

5) Free Demand Drafts (DD) above Rs.100,000/-. Demand drafts up to Rs.50,000/- at flat

cost of Rs.40/-. DDs above Rs.50,000/- & up to Rs.100,000/- at nominal cost of Rs.25/-

6) Free Pay Order (PO) above Rs.100,000/-. Pay Order up to Rs.50,000/- at flat cost of

Rs.40/-. POs above Rs.50,000/- & up to Rs.100,000/- at nominal cost of Rs.25/-

7) Free Pay Order (PO) above Rs.100,000/-. Pay Order up to Rs.50,000/- at flat cost of

Rs.40/-. POs above Rs.50,000/- & up to Rs.100,000/- at nominal cost of Rs.25/-

8) Payable at par cheque book at nominal price.

9) Register for Insta Alert service and receive updates on your account as and when the

select transaction happens - all this without visiting the branch or ATM!

10) HDFC Bank offers you Doorstep Banking, a channel, which is convenient, secure and

hassle-free. Now, you can enjoy the benefits of banking right at your doorstep. The Bank will

arrange to render the services like Cash & Cheque Pickup and Cash Delivery, through a

reputed agency.

11) Enjoy facilities like 24-hour Phone Banking, Net Banking and Mobile Banking that helps

you check your balance & transaction details, find out the status of your cheque or stop

cheque payment.

Premium Current Account

You can avail benefits of inter-city banking account with Premium Current Account that requires

an average quarterly balance of only Rs. 25,000 offers Payable-At-Par cheque book facility &

FREE inter-city clearing transactions across our network up to Rs.15 Lacks per month. A

Page | 31

Current Account with the benefits of accessing your account from a large network of branches,

and through direct access channels - the phone, mobile, Internet and through the ATM.

Features and Benefits:

1) Free anywhere collection & payment within HDFC Bank branch network (except Dahej),

up to Rs.15 lacs per month, incremental amount to be charged @ Rs.1.50 per Rs.1, 000/-, min

Rs.25/-

2) Free NEFT Transactions

3) Free RTGS collection. RTGS payment @ Rs.25/- per transaction.

4) Free Inter-city Account to accounts funds transfer between HDFC Bank accounts.


up to Rs.15 lacs per month, incremental amount to be charged @ Rs.1.50 per Rs.1,000/-, min

Rs.25/-


7) Free RTGS collection. RTGS payment @ Rs.25/- per transaction. Free anywhere

collection & payment within HDFC Bank branch network (except Dahej), up to Rs.15 lacs per

month, incremental amount to be charged @ Rs.1.50 per Rs.1, 000/-, min Rs.25/-



up to Rs.15 lacs per month, incremental amount to be charged @ Rs.1.50 per Rs.1, 000/-, min

Rs.25/-


11) Free RTGS collection. RTGS payment @ Rs.25/- per transaction.

12) Free Inter-city Account to accounts funds transfer between HDFC Bank accounts.

Page | 32

13) Free Demand Drafts (DD) above Rs.100,000/-. Demand drafts up to Rs.50, 000/- at flat

cost of Rs.40/-. DDs above Rs.50, 000/- & up to Rs.100, 000/- at nominal cost of Rs.25/- and can

be issued from any HDFC Bank Branch

14) Free Pay Order (PO) above Rs.100, 000/-. Pay Order up to Rs.50, 000/- at flat cost of

Rs.40/-. POs above Rs.50, 000/- & up to Rs.100, 000/- at nominal cost of Rs.25/- and can be

issued from any HDFC Bank Branch.

15) 100 "At Par" cheque leaves free per month

16) Register for Insta Alert service and receive updates on your account as and when the


17) HDFC Bank offers you Doorstep Banking*, a channel, which is convenient, secure and

hassle-free. Now, you can enjoy the benefits of banking right at your doorstep. The Bank will

arrange to render the services like Cash & Cheque Pickup and Cash Delivery, through a reputed

agency

18) Enjoy facilities like 24-hour Phone Banking, Net Banking and Mobile Banking to access

your account.

Trade Current Account

HDFC Bank Trade Current Account gives you the power of inter-city banking with a single

account. From special cheques that get treated at par with local ones in any city where we have a

branch, to free account to account funds transfer between HDFC Bank accounts, to free inter-city

cheque collection (through clearing) of up to Rs. 35 lakhs per month, our priority services have

become the benchmark for banking efficiency. Trade Current Account requires you to maintain

an average quarterly balance of Rs. 40,000.


1) Free Account to account funds transfer between HDFC Bank accounts.

2) Free RTGS/NEFT Transactions.

Page | 33

3) Free up to 30 Demand Drafts (DD) per month and can be issued from any HDFC Bank

Branch.

4) Free up to 30 Pay Orders (PO) per month and can be issued from any HDFC Bank

Branch.

5) Free anywhere cheque collection within HDFC Bank branch network (except Dahej), up

to Rs.35 lacs per month.

6) Free Outstation Cheque Collection through Speed Clearing (for instruments with value

upto Rs. 1 lac).

7) Convenience to withdraw & deposit cash at all our branches

8) 200 "At Par" cheque leaves per free month. Free at par cheque payments across all HDFC

Bank locations for unlimited value.

9) Register for InstaAlert service and receive updates on your account as and when the



hassle-free.

11) Enjoy facilities like 24-hour Phone Banking, Net Banking and Insta Query that helps you

check your balance & transaction details; find out the status of your cheque or stop cheque

payment.

Plus Current Account

In today's fast-paced world, your business regularly requires you to receive and send funds to

various cities in the country. From special cheques that get treated at par with local ones in any

city where we have a branch, faster collection of outstation cheques (payable at branch

locations), free account to account funds transfer between HDFC Bank accounts to Free inter-

city cheque collection (clearing) of up to 75 lakhs per month. Plus Current Account requires you

to maintain an average quarterly balance of Rs. 100,000.


Page | 34

1) Free Account to account funds transfer between HDFC Bank accounts

2) Free payment and collection through RTGS

3) Free payment and collection using NEFT

4) Free up to 50 Demand Drafts per month and can be issued from any HDFC Bank

Branch

5) Free up to 50 Pay Orders (PO) per month.

6) Free anywhere cheque collection (clearing) within HDFC Bank branch network (except

Dahej), up to Rs.75 lacs per month

7) Free Outstation Cheque Collection through Speed Clearing (for instruments with value

upto Rs. 1 lac).

8) Convenience to withdraw & deposit cash at all our branches

9) 300 "At Par" cheque leaves free per month. Free at par cheque payments across all HDFC

Bank locations for unlimited value

10) Free Cash Deposit upto Rs.10 lacs per month across all HDFC Bank Branches in your

city. What's more, Cash Deposit at HDFC Bank branches in other cities is also free upto Rs.2

lacs per month.

11) Register for InstaAlert service and receive updates on your account as and when the



hassle-free.

Ultima Current Account

Ultima Current Account is the right fit Current Account product for Manufacturers/large

Distributors/Stockiest/Multi specialty Hospitals and Dealers along with Business Banking /

Inventory Funding Customers. Avail a minimum free limit of Rs.2Cr on cash deposit at your

Home Branch Location and a free limit of Rs.50 Lac per month for cash deposit at Non-Home

Branch Location. Also, there is unlimited free local / anywhere cheque collections & payments

facility along with free RTGS/NEFT collections and payments and DD/PO for unlimited value

for your benefit.

Page | 35


1) Free Home Location Cash Deposit limit, which is higher of Rs. 2 Cr per month (100

transactions) or 8 times the AMB maintained in the previous month

2) Non Home Location Cash Deposit of Rs. 50 lac per month (25 transactions). Operational

Limit of Rs. 5 lac for cash deposit at non home branch

3) Free Cash Withdrawal from Home Branch. Free Cash Withdrawal of up to Rs. 75 lac per

month from Non Home Branches

4) 1500 free cheque per month

5) 2000 free bulk transactions per month

6) Unlimited free local / anywhere cheque collections and payments (through both Clearing

& Funds Transfer)

7) Unlimited Free RTGS / NEFT Collections and Payments

8) Unlimited Free DD / MC; Free Correspondent Bank DD of up to Rs. 30 lac per month

9) Free Outstation Cheque Collection at Bank Location / Speed Clearing Transactions

10) Free Debit Cards (all variants) / ATM Card / Bill Pay / Insta Alert; 5 free ATM

withdrawals from non HDFC Bank ATMs per month

11) Bank conveniently with facilities like Net Banking, Phone banking and Mobile Banking

– check your account balance, pay utility bills or stop cheque payments all via SMS.

12) Doorstep Banking* - a channel that is convenient, secure and hassle-free. We will

arrange to render services like cash and cheque pick-ups and cash deliveries, through a

reputed agency.

Supreme Current Account

For large traders operating across the country, this current account can help reduce transaction

cost. Plus free access to one of the most advanced and secure Net Banking and Mobile Banking

services.


Page | 36

1) Free cash deposits of up to Rs. 10 lakh per month or 10 times the Average Monthly

Balance (whichever is higher), across all HDFC Bank branches pan India.

2) Lower AQB requirements Semi-Urban and Rural Locations

3) Free account-to-account fund transfers between HDFC Bank accounts

4) Free cheque collections anywhere within the HDFC Bank branch network (except

Dahej), up to Rs. 100 lakhs per month.*

5) 200 free "at par" cheque leaves per month and free at par cheque payments of unlimited

value* across all HDFC Bank locations

6) Free outstation cheque collections through Speed Clearing (for instruments with a value

of up to Rs. 1 lakh)

7) Up to 30 free Demand Drafts (DD) or Pay Orders (PO) per month of any value can be

issued from any HDFC Bank branch.

8) Free RTGS (Real Time Gross Settlement) and NEFT (National Electronic Fund Transfer)

collections.

9) Convenient cash withdrawals and deposits at all our branches*

10) Free InstaAlert registration for updates on your account as and when transactions happen.

No need to visit a branch or ATM



reputed agency.



Apex Current account

A high end current account that caters to fast growing, large businesses who can derive

maximum advantage from the host of benefits offered.


Page | 37

1) Maximum transactional benefits with faster mobilization of funds

2) Maintain an Average Quarterly Balance of Rs. 10, 00,000.

3) Access to more than 3000 branches.

4) Faster collection of outstation cheques through Speed Clearing. Speed clearing is

absolutely free with your Apex Current Account.

5) Free Inter-city cheque collections and payments within HDFC Bank Network for

unlimited value (excluding Dame).

6) Free account to account funds transfers between HDFC Bank accounts.

7) Free payment and collection through RTGS.

8) Free payment and collection using NEFT.

9) Free Demand Drafts & Pay Orders that can be issued from any HDFC Bank branch.

10) Convenience to withdraw and deposit cash at all our branches*.

11) Free cash deposits up to Rs. 120 lakhs per month across all home branches (subject to a

maximum of 60 transactions per month and a per day limit of Rs. 3 lakh on cash deposits

at non-home branches). Cash deposits at HDFC Bank branches in other cities are also

free up to Rs. 30 lakhs per month*.

12) 1000 free payable-at-par cheque leaves per month.

13) Register for InstaAlert and receive updates on your account whenever transactions take

place.

14) Doorstep Banking* for your convenience and security. We will pick-up and deliver cash

and cheques through a reputed agency.

Ezee Current Account

For savvy traders operating across multiple cities, this current account can help reduce

transaction cost. Plus free access to one of the most advanced and secure Net Banking and

Mobile Banking services.


Page | 38

1) Free cash deposits of up to Rs. 4 lakh per month or 6 times the Average Monthly Balance

(whichever is higher), across all HDFC Bank branches pan India

2) Lower AQB requirements Semi-Urban and Rural Locations

3) Free account-to-account fund transfers between HDFC Bank accounts

4) Free cheque collections anywhere within the HDFC Bank branch network (except

Dahej), up to Rs. 25 lakh per month

5) 100 free "at par" cheque leaves per month and free at par cheque payments of unlimited

value* across all HDFC Bank locations

6) Free outstation cheque collections through Speed Clearing (for instruments with a value

of up to Rs. 1 lakh)

7) Up to 20 free Demand Drafts (DD) or Pay Orders (PO) per month of any value can be

issued from any HDFC Bank branch

8) Free RTGS (Real Time Gross Settlement) and NEFT (National Electronic Fund Transfer)

collections.

9) Convenient cash withdrawals and deposits at all our branches*

10) Free InstaAlert registration for updates on your account as and when transactions happen.

No need to visit a branch or ATM



reputed agency.

Max Current Account

High, dynamic cash deposit limit at any location makes this current account ideal for large

businesses operating across the country


1) Maximum transactional benefits with faster mobilization of funds

2) Average Quarterly Balance of Rs. 5,00,000

3) Access to more than 3000 branches

Page | 39

4) Faster collection of outstation cheques. No charges for outstation cheque collection at

HDFC Bank Locations.

5) Free account to account funds transfers between HDFC Bank accounts

6) Free payment and collection through RTGS and NEFT

7) Free Demand Drafts & Pay Orders that can be issued from any HDFC Bank branch

8) Free anywhere cheque collections (through clearing) up to Rs. 3.5 Crores per month

within the HDFC Bank branch network (except Dahej)

9) Faster collection of outstation cheques through Speed Clearing. Speed Clearing is

absolutely free with your Max Current Account

10) 500 free ‘at-par’ cheque leaves per month

11) Free at-par cheque payments across all HDFC Bank locations for any value*

12) Convenience to withdraw and deposit cash at all HDFC Bank branches*

13) Combined free limit for cash deposit across all HDFC Bank Branches (Home and non-

home locations) of Rs.60 lacs per month (subject to a maximum monthly free limit of

Rs.200 Lacs)*.

14) Register for InstaAlerts and receive updates on your account whenever transactions take

place.

Agri Current Account

A current account ideally suited for those in Agriculture related industries where the nature of

business is seasonal.


1) Agri Current Account offers those involved in Trading of agricultural commodities, the

benefit of Half Yearly Average Balance Requirement of Rs. 10000/-. As such, you need

not bother about AQB charges in non-business months.

2) Free unlimited cash withdrawals from Home Branch.

3) 50 free Payable–at–par cheque leaves per month.

Page | 40

4) Free Cash Deposits up to Rs.10 lacs per month across all branches in your home city*.

5) Free account to account funds transfers within HDFC bank.

6) Free Local cheque collections and payments.

7) Free payments and collections through NEFT.

8) Free RTGS collections. RTGS payments @ Rs. 25 per transaction.

9) Free payments (clearing transactions) at all HDFC bank locations.

10) Free issuance of Pay Orders(PO)/Demand Drafts(DD) for instruments above the value of

Rs.50,000/- on any HDFC Bank Locations


arrange to render the services like Cash & Cheque Pick-ups and Cash Deliveries, through

a reputed agency.

12) Free 24-hour Phone Banking, Net Banking and Mobile Banking so you can check your

balance and transaction details, find out the status of your cheques or stop cheque

payments.

13) InstaAlerts registration to get updates on your account as and when transactions happen.

No need to visit a branch or ATM.

Current Account for Hospitals and Nursing Homes

Best suited for Hospitals and Nursing Homes, this current account comes with higher cash

deposit limits.


1) Free Cash Deposit up to Rs. 10 lakhs per month at Home Location.

2) Free account to account funds transfers (local and anywhere) within HDFC bank.

3) Free Local cheque collections and payments.

Page | 41


5) Free payments and collections through RTGS.

6) Free cheque payments (clearing transactions) at all HDFC bank locations.

7) Free cash withdrawals at Home Branch.

8) 200 free Payable–at–par cheque leaves per month.

9) Up to 30 free Pay Orders (POs) per month can be issued from any HDFC bank branch.

10) Up to 30 free Demand Drafts (DDs) per month can be issued from any HDFC bank

branch.


arrange to render services like Cash & Cheque Pick-ups and Cash Deliveries, through a

reputed agency.



payments.

13) Register for InstaAlerts to get updates on your account as and when transactions happen.

No visiting a branch or ATM.

14) You can enjoy all the above mentioned facilities and many more by just maintaining an

Average Quarterly Balance (AQB) of Rs. 40,000.

Current Account for Professionals

Doctors, Architects, Chartered Accountants and other professionals can derive maximum value

from this current account.


1) Average Quarterly Balance (AQB) requirement of Rs. 10,000.

Page | 42

2) Free Cash Deposits up to Rs.10 lacs per month across all branches in your home city*

3) Free account to account funds transfers (local and anywhere) within HDFC bank.

4) Free Local cheque collection and payment.


6) Free payments and collections through RTGS.

7) Free cheque payments (clearing transactions) at all HDFC bank locations.

8) Free cash withdrawals at your home branch.

9) 50 free payable –at–par cheque leaves per month.

10) 30 free Pay Orders (PO's) per month can be issued from any HDFC bank branch.

11) 30 free Demand Drafts (DDs) per month can be issued from any HDFC bank branch.


arrange to render the services like Cash & Cheque Pick-ups and Cash Deliveries, through

a reputed agency.



payments.

14) Register for InstaQuery so you get updates on your account as and when transactions

happen. No need to visit a branch or ATM.

Merchant Advantage plus Current account

Best suited for large retail outlets. Cash deposit limits are linked to transaction volumes on card

swipe machines, making this current account cost effective.

Features and Benefits:Page | 43

1) Enjoy a free monthly Cash Deposit limit* at your home branch that is four times the

amount swiped at the HDFC Bank EDC Machine linked to the Merchant Advantage Plus

Current Account.

2) Get free Regular and Business Debit Cards with your Merchant Advantage plus Current

Account.

3) Pay your vendors and suppliers across the country using multiple remittance options like

local, at-par cheques, Demand Drafts, Pay Orders, RTGS (Real Time Gross Settlement)

for greater convenience and reduced cost.

4) Enjoy 24-hour access to Net Banking, Phone Banking, ATMs and Mobile Banking.

5) Enjoy special privileges with Doorstep Banking services like cash and cheque pick-ups

and cash deliveries at nominal rates.

6) Get special offers and a host of privileges with your Business Debit Card.

7) Make your utility bill payments with Bill Pay. This service is absolutely free.

8) Get free monthly account statements.

9) Use InstaAlerts and get free balances and transaction alerts on your mobile phone and via

email.

10) Average Minimum Balance requirement is Rs.1, 00,000 per month. Non maintenance

charges for the minimum balance is Rs. 1,000/- per month



Merchant Advantage Current account

Ideal current account for retail outlets. Cash deposit limits are linked to transaction volumes on

card swipe machines, making this account cost effective.

Page | 44


1) Enjoy a free monthly Cash Deposit limit* at your home branch location that is four times

the amount swiped at the HDFC Bank EDC Machine linked to your Merchant Advantage

Current Account

2) Pay your vendors and suppliers across the country using multiple remittance options like

local, at-par cheques, Demand Drafts, Pay Orders, RTGS (Real Time Gross Settlement)

for greater convenience and reduced cost.

3) Enjoy 24-hour access to your account through Net Banking, Phone Banking, ATMs and

Mobile Banking

4) Enjoy special privileges with Doorstep Banking services like cash and cheque pick-ups

and cash deliveries at nominal rates

5) Get a free Regular Debit Card, which comes with a host of privileges and benefits

6) Make your utility bill payments with BillPay. This is absolutely free.

7) Get free monthly account statements

8) Use InstaAlerts and get free balance and transaction alerts on your mobile phone and

email.

9) Average Minimum Balance requirement is Rs.25, 000 per month. Non maintenance

charges for the minimum balance is Rs. 300/- per month.



Flexi Current Account

Page | 45

Ideal for businesses with high seasonal requirement. This current account offers dynamic cash

deposit limits to match business seasonality thereby reducing cost.


1) Enjoy dynamic free limits on Intercity Cheque Collections & Account to Account Funds

Transfer as well as Cash Deposit at home location branches based on the AMB (Average

Monthly Balance) maintained*

2) Take for example your AMB in a particular month is Rs.2,00,000 then your dynamic free

transaction limit for that month will be as per follows:

3) Transaction Dynamic Free Limits*

4) Cash deposit at home branch Rs. 20,00,000 (10 times AMB)

5) Collections and funds transfers anywhere (except Dahej) Rs. 70,00,000 (35 times

AMB)

6) Free RTGS/NEFT Transactions.

7) 40 free Demand Drafts and 40 free Pay Orders issued from any HDFC Bank branch*

8) Convenience to withdraw and deposit cash at all HDFC Bank branches*.

9) Competitive pricing on Demand Drafts drawn on Correspondent Banking Locations and

Outstation Cheque Collection at HDFC Bank Locations

10) InstaAlerts receive updates on your account whenever transactions happen.

11) Enjoy 24-hour Phone Banking, Net Banking and InstaQuery that helps you check your

balance and transaction details, find out the status of cheques or stop cheque payments.

12) Doorstep Banking* for your convenience and security. We will arrange for cash and

cheque pick-ups and cash deliveries, through a reputed agency.

Page | 46

Institutional Current Account

Institutional Current Account is a specially designed current account product for Trusts,

Associations, Societies, Clubs, Non-Profit Organizations and Government Department

Municipal Bodies. It has features which are specially designed keeping in mind the requirement

of the Institutional segment.


1) Free local and anywhere fund transfer facility within HDFC Bank.

2) Free local and anywhere cheque payment facility.

3) Free anywhere cheque collection of Rs. 350 lac per month, above which charges at Rs.

1.50/1000 subject to minimum of Rs. 50 per transaction.

4) Free bulk transaction of 300 transactions per month, beyond which Rs. 10 per transaction.

5) Free Outstation cheque collection at Bank location.

6) Minimum free limit for cash deposit at home location is Rs. 50 lac per month or 50

transactions, whichever is lower, beyond which charges at Rs. 4 / 1000.

7) Free cash withdrawal at Home Branch.

8) Free DD/PO payable at Bank location.

9) Free 25 RTGS / NEFT payment transactions per month.

10) Free collections through RTGS / NEFT.

11) Free 500 payable at par cheque leaves per month, beyond which Rs. 2 per cheque leave.

12) Free InstaAlerts registration for updates on your account as and when transactions

happen. No need to visit a branch or ATM.


arrange to render services like Cash & Cheque pick-ups and Cash Deliveries, through a

reputed agency.

Page | 47

1.2.3 PROBLEMS OF THE ORGANIZATION

1) Organization is not aware of level of satisfaction of the existing customers.

2) Customers are switching to other banks.

3) In some Current Account there are very low transactions of funds.

4) Organization is not aware that for what reasons customer prefers this bank.

5) Organization wanted to know that customer is aware of the extra services or not.

1.3 Introduct ion to customer sat is fact ion

Customer satisfaction is essential for the survival of any business. The best way to find out

whether customers are satisfied or not is to ask them their opinions about your products and

services, what's most important to them, and then make improvements to those areas that have

the biggest impact on their satisfaction.

Customer satisfaction, however, is when the customer is satisfied with aproduct/service that

meets the customer’s needs, wants, and expectations.

The level of satisfaction is determined not only by the quality and type of customer

experience but also by the customer’s 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 agency’s services or products.

Page | 48

The ultimate aim of measuring customer satisfaction must be to act on the information gathered,

close the “gaps” between the customer’s perception of service and the actual service provided.

An organization with a strong customer serviceculture places the customer at the centre of

service design, planning and service delivery.Customer centric organizations will:

Determine the customer’s expectations when they plan listen to the customer

asthey design.

Focus on the delivery of customer service activities value customer feedback whenthey

measure performance.

1.3.1 Measure Customer Satisfaction.

In today’s competitive environment, every organization is trying to attract the

customers by assuring highest degree of satisfaction. Satisfied customers are the main

determinants of success or failure of the business of an organization.

Customer satisfaction measurement helps the organization to know:

How well are the products and services able to meetcustomer needs and expectations?

How well is the business process working?

Where to make the changes to improve the performance of product or process?

What is the effect of the changes made for improvements?

Page | 49

1.3.2 Information search

Once the consumer has recognized a problem, they search for information on products and

services that can solve that problem. Belch and Belch (2007) explain that consumers undertake

both an internal (memory) and an external search.

Sources of information include: -

Personal sources

Commercial sources

Public sources

Personal experiences

The relevant internal psychological process that is associated with information search is

perception. Perception is defined as the process by which an individual receives, selects,

organizes, and interprets information to create a meaningful picture of the world.

1.3.3 The selective consumer behavior process

Stage Description

- Selective exposure consumers select which promotional messages they will expose

themselves to.

- Selective attention consumers select which promotional messages they will pay attention

to

- Selective comprehension consumer interpret messages in line with their beliefs, attitudes,

motives and experiences

- Selective retention consumers remember messages that are more meaningful or important

to them

The implication of the process helps develop an effective promotional strategy, and select which

sources of information are more effective for the brand.

Page | 50

1.3.4 Information evaluation

At this time the consumer compares the brand and products that are in their evoked set. How can

the marketing organization increase the likelihood that their brand is part of the consumer’s

evoked set? Consumers evaluate alternatives I terms of the functional and psychological benefits

that they offer. The marketing organization needs to understand what benefits consumers are

seeking and therefore which attributes are most important in terms of making a decision.

Purchase decision

Once the alternatives have been evaluated, the consumer is ready to make a purchase decision.

Sometimes purchase intention doesn’t result in an actual purchase. The marketing organization

must facilitate the consumer to act on their purchase intention. The organization can use variety

of technique to achieve this. The provision of credit or payment terms may encourage purchase,

or a sales promotion such as the opportunity to receive a premium or enter a competition may

provide an incentive to buy now. The relevant internal psychological process that is associated

with purchase decision is integration. Once the integration achieved, the organization can

influence the purchase decisions much more easily.

Post purchase evaluation

It is common for the customers to experience concerns after making a purchase decision. This

arises from a concept that is known as “cognitive dissonance”. The customer, having bought a

product, may feel that an alternative would have been preferable. In these circumstances that

customer will not repurchase immediately, but is likely to switch brands next time.

To manage the post-purchase stage, it is the job of the marketing team to persuade the potential

customer that the product will satisfy his or her needs. Then after having made a purchase, the

customer should be encouraged that he or she has made the right decision. It is not affected by

advertisement.

Internal influences

Consumer behavior is influenced by demographics, psychographics, personality, motivation,

knowledge, attitudes, beliefs and feelings. Consumer behavior concern with consumer need

Page | 51

consumer actions in the direction of satisfying needs leads to his behavior of every individual

depend on thinking.

External influences

Consumer behavior is influenced by: culture, sub-culture, locality, royalty, ethnicity, family,

social class, reference groups, lifestyle, sex and all.

Page | 52

Chapter – 2

LITERATURE

REVIEW

Page | 53

3.1 LITERATURE REVIEW

Both the technical and the functional dimensions of service management were shown to correlate

with customer satisfaction. Thus, SMEs seem to evaluate their banking relationship not only on

the basis of the effectiveness and quality of banks' service outcomes but also on the care and

manner in which the bankers deliver services. (Nicolas Lundahl, Fatima Vegholm, Lars

Silver, Managing Service Quality Volume: 19 Issue: 5 2009)

The purpose of this paper is to explore the relationship between corporate social responsibility

(CSR) and customer outcomes. This paper reviews the literature on CSR effects and satisfaction,

noting gaps in the literature. A series of propositions is put forward to guide future research

endeavors. By understanding the likely impact on customer satisfaction of CSR initiatives vis-à-

vis customer-centric initiatives, the academic research community can assist managers to

understand how to best allocate company resources in situations of low customer satisfaction.

Such endeavors are managerially relevant and topical. Researchers seeking to test the

propositions put forward in this paper would be able to gain links with, and possibly attract

funding from, banks to conduct their research. Such endeavors may assist researchers to redefine

the stakeholder view by placing customers at the center of a network of stakeholders. An

understanding of how to best allocate company resources to increase the proportion of satisfied

customers will allow bank marketers to reduce customer churn and hence increase market share

and profits. (Lynette M. McDonald, Sharyn Rundle-Thiele, International Journal of Bank

Marketing Volume: 26 Issue: 3 2008)

Ethics have always played a crucial role in the realm of business and commerce. This paper aims to

extract the principle factors of ethical practices to develop a model for competitive advantage in banking

and to show the relation between ethical practice and customer satisfaction and the linked reason for

satisfaction as a tool for competitive advantage. Based on the literature review, ethical issues in banking

have been identified as a foundation work. Then an empirical study using survey research has been

completed. The survey questionnaire has been designed using the literature and pilot survey input. Factor

analysis has been conducted to derive ethical factors for competitive advantage from the survey data,

which included 186 responses. ?2 tests were also carried out to show the linked .From the analysis; two

Page | 54

principle factors have been extracted: the cost leveraging factor; and the value leveraging factor which

lead to competitive advantage. Moreover, it also revealed that high ethical practice results in high

customer satisfaction and performance. ( Goitom Tesfom, Nancy J. Birch Journal of Services

Marketing Volume: 25 Issue: 5 2011)

This research investigated the relationship between three elements – core service quality,

relational service quality- and perceived value – and customer satisfaction and future intentions

across four services. The results revealed that core service quality (the promise) and perceived

value were the most important drivers of customer satisfaction with relational service quality (the

delivery) a significant but less important driver. A direct link between customer satisfaction and

future intentions was established. The relative importance of the three drivers of satisfaction

varied among services. Specifically, the importance of core service quality and perceived value

was reversed depending on the service. A major conclusion was that both perceived value and

service quality dimensions should be incorporated into customer satisfaction models to provide a

more complete picture of the drivers of satisfaction. . (Gordon H.G. McDougall, Birch Journal

of Services Marketing Volume: 25 Issue: 5 2011)

Results from independent two-sample t-tests and logistic regression support all five hypotheses,

confirming that young and older bank customers differ significantly in their perception of switching

barriers: relational benefits, switching costs, availability and attractiveness of alternatives, service

recovery and the duration of time they intend to end their relationship with their banks. This study was

conducted among employees of two higher education institutions. Thus, further research needs to test the

research results in a diverse population. Since younger customers are more likely to change their banks

easily, if retail banks want to retain younger customers they need to offer more meaningful incentives to

younger customers than they offer to older customers. In terms of practice the findings in this research

highlight the need for managers to design different switching barrier packages for each customer age

group. ( Goitom Tesfom, Nancy J. Birch Journal of Services Marketing Volume: 25 Issue:

5 2011)

This research investigated the relationship between three elements – core service quality,

relational service quality- and perceived value – and customer satisfaction and future intentions

across four services. The results revealed that core service quality (the promise) and perceived

value were the most important drivers of customer satisfaction with relational service quality (the Page | 55

delivery) a significant but less important driver. A direct link between customer satisfaction and

future intentions was established. The relative importance of the three drivers of satisfaction

varied among services. Specifically, the importance of core service quality and perceived value

was reversed depending on the service. A major conclusion was that both perceived value and

service quality dimensions should be incorporated into customer satisfaction models to provide a

more complete picture of the drivers of satisfaction. (Gordon H.G. McDougall, (Professor of

Marketing, School of Business and Economics, Wilfred Laurier University, Waterloo,

Ontario, Canada), Terrence Levesque, (Professor of Economics, School of Business and

Economics, Wilfrid Laurier University, Waterloo, Ontario, Canada)

Page | 56

Chapter – 2

RESEARCH

METHODOLOGY

Page | 57

RESEARCH METHODOLOGY

3.1 OBJECTIVES OF THE STUDY

Main objective:

To know the customer’s satisfaction level and their perception towards of HDFC Bank

services.

Sub objectives:

To know that whether the customer is getting prompt services from the bank or not.

To know the level of interest of customer towards differentproducts of current account.

To know the reasons that attracts the customers to be a part of the bank.

To know the customer awareness regarding the Bank’s extra services.

3.2 RESEARCH METHODOLOGY

This topic describes the methods of the study of the project. Research is a careful

investigation or inquiry especially through search for new facts in branch of

knowledge: market research specifies the information.Research problem is the one which

requires a researcher to find out the best solution for the g iven p rob l em tha t i s t o f i nd

ou t t he cou r se o f a c t i on , t he a c t i on t he ob j ec t i ve s c an be obtained optimally in

the context of a given environment.

RESEARCH DESIGN

Page | 58

A framework or blueprint for conducting the research project. It specifies the details of the

procedures necessary for obtaining the information needed to structure and/or solve research

problems.

Define the information needed.

Design the research.

Specify the measurement and scaling procedures.

Construct and present a questionnaire or an appropriate form for data collection.

Specify the sampling process and sampling size.

Develop a plan of data analysis.

3.3 Data Collection: -

The data are collected by the primary and secondary sources both to know the customer’s

satisfaction level towards Current Account of HDFC Bank.

a) Primary sources:-

The primary sources are those through which data can be collected by first hand. The data

has been collected directly from respondents with the help of questionnaires and analysis was

done on the basis of response received from the customers.The questionnaire has been

designed in such a manner that the consumer’s satisfaction level can be measured easily.

SECONDARY DATA:-

Secondary data means data that are already available i.e. they refer the data which have already

been collected and analyzed by someone else. When the researcher utilizes secondary data, than

he has to look into various sources from where he can obtain them, in this case he is certainly not

confronted with the problems that are usually associated with the collection of original data.

Secondary data may either be published data or unpublished data. Usually published data are

available in:

The main source of information for the project was

Weekly magazine;

Internet

Newspapers

RESEARCH PERIOD

Page | 59

Research work is done in 6 weeks from 08 June to 08 July 2013.

AREA OF STUDY

The area of survey is Panipat City.

SAMPLE SIZE

The sample of 100 persons was taken on the basis of convenience.

Tools for analysis

Graphical tools:

Graphical tools used are

Pie chart

Bar diagram

Page | 60

LIMITATIONS

All efforts have been made to present a true picture of the satisfaction level of customers towards current

account of hdfc bank, but there are certain limitations to be kept in mind while going through the report.

1) SAMPLE SIZE:-

The size of samples greatly affects the survey results, but the size may not be substantial, may be

too short for the conduct of survey in market.

2) TIME:-

Time constraints were a great barrier as the work was to be completed in a given time period.

3) INFORMATION MAY BE BIASED:-

Respondent’s answer may be biased; it may be influenced by other factors such as

advertisements, brand ambassador, family members, relatives etc.

4) LIMITED AREA OF STUDY:-

The area of study is also greatly affecting the study done;this study is done in limited area

only in Panipat city.

Page | 61

Chapter – 4

Data Analysis

AndPage | 62

Interpretation

Data Analysis

Q. 1 CUSTOMER PROFILE OF SURVEYED RESPONDENTS

Table 4.1 Customer Profiles of Surveyed Respondents.

Feedback No. of Respondents Percentage of

Respondents(N=100)

Business 92 92%

Profession 8 8%

Services 0 0%

Total 100 100%

Source: questionnaire survey

Page | 63

BusinessProfession

Service

0%

20%

40%

60%

80%

100%92%

8%0%

Percentage of Respondents


Figure 4.1 OCCUPATIONS OF THE RESPONDENTS

INTERPRETATION:

According to the above analysis it is concluded that out of sample of 100 people, 92%

respondents were businessman, 8% respondents were having profession and 0% respondents

were serviceman.

Q. 2 HOW LONG YOU ARE A PART OF HDFC BANK?

Table 4.2


Respondents (N=100)

Less Than 6 Months 20 20%

Less Than 1 Year 37 37%

Less Than 2 Years 14 14%

More Than 2 Years 29 29%

Page | 64

Total 100 100%

20%

37%14%

29%

Percentage of respondents

Less Than 6 MonthsLess Than 1 yearLess Than 2 YearsMore Than 2 Years

Figure 4.2 Time period of stay in HDFC Bank

INTERPRETATION:

The above diagram shows that 20% respondents were a part of bank for less than 6 months, 37%

respondents were a part of bank for less than 1 year, 14% respondents were a part of bank for

less than 2 years and 29% respondents were a part of bank for more than 2 years.

Q. 3. WHAT ARE THE REASONS THAT ATTRACT YOU TO BE A CUSTOMER OF

THE BANK?

Table 4.3


Respondents (N=100)

Its Image 40 40%

Page | 65

Its Services 30 30%

Its Product 20 20%

All Above 10 10%

Total 100 100%

0.5 1 1.5 2 2.5 3 3.5 4 4.50%5%

10%15%20%25%30%35%40%45%

100%

100%

100%

100%


Percentage Of Respondents

Figure 4.3 Major attraction of the bank

INTERPRETATION:

The above diagram shows that 40% respondents were attracted to the bank because of its image,

30% were attracted because of its services, 20% were attracted because of its products, and 10%

were attracted because of all three reasons.

Q.4. ARE YOU SATISFIED WITH THE FEATURES AND BENEFITS OF THE

PRODUCTS OF CURRENT ACCOUNT?

Table 4.4

Page | 66


Respondents (N=100)

Strongly Agree 22 22%

Agree 47 47%

Neutral 29 29%

Disagree 2 2%

Strongly Disagree 0 0%

Total 100 100%


Strongly Agree

Agree Neutral Disagree Strongly Disagree

0%

10%

20%

30%

40%

50%

22%

47%

29%

2% 0%



Figure 4.4 HDFC Bank is providing satisfaction to customers.

INTERPRETATION:

From the above analysis it is concluded that 22% respondents were strongly agree with the

statement , 47% respondents only agree with the statement, 29% respondents were neutral, 2%

respondents were disagree but no respondent was strongly disagree with the above statement.

Q 5. Which product of current account you prefer?Page | 67

Table 4.5


Respondents(N=100)

Regular Current

Account

25 25%

Premium Current

Account

46 46%

Trade Current Account 15 15%

Plus Current Account 14 14%

Total 100 100%


Regular Current Ac-

count




0%

10%

20%

30%

40%

50%

25%

46%

15% 14%



Figure 4.5 Product of current account you prefer the most.

INTERPRETATION:

From the above analysis it is concluded that most of the respondents preferred Premium Current

Account, 25% respondents preferred Regular Current Account, 15% respondents preferred Trade

Current Account and 14% respondents preferred Plus Current Account.

Page | 68

Q 6. Would you recommend current account of HDFC Bank to others?

Table 4.6


Respondents(N=100)

Definitely 48 48%

Probably 22 22%

Might or might not 27 27%

Probably Not 3 3%

Definitely Not 0 0%

Total 100 100%

Definitely Probably Might or might not

Probably Not

Definitely Not

0%10%20%30%40%50%

48%

22%27%

3% 0%



Figure 4.6 current account recommendation of HDFC Bank to others

Page | 69

INTERPRETATION:

From the above analysis of given sample of 100 respondents, 48% respondents will definitely

recommend product to others, 22% respondents will probably recommend product to others,

27% respondents will might or might not recommend, 3% respondents will probably not

recommend, but no respondent will definitely not recommend product to others.

Ques 7. Do you know about extra services being provided by the bank?

Table 4.7


Respondents(N=100)

Yes 100 100%

No 0 0%

Total 100 100%


1


Yes No

Figure 4.7 Knowledge about extra services being provided by the bank.

Page | 70

INTERPRETATION:

From the above analysis it is concluded that all respondents know about extra services being

provided by the bank.

Q 8. Which of the following extra services of the bank would you like to go in

for?

Table 4.8


Respondents(N=100)

Phone Banking 5 5%

ATM 40 40%

Net Banking 5 5%

Bill Payment 10 10%

All Above 40 40%

Total 100 100%


Page | 71

Phone Ban

king

ATM

Net Ban

king

Bill Pay

ment

All Above

0%10%20%30%40%

5%

40%

5% 10%

40%Percentage of Respondents


Figure 4.8 Extra benefits asked by respondents from bank.

INTERPRETATION:

From the above analysis of given sample of 100 respondents , 40% respondents know about

ATM services , 5% respondents know about Phone banking , 5% respondents know about Net

Banking, 10% respondents know about Bill Payment and 40% respondents know about all

services.

Ques 9. Do you always get prompt services whenever you visit the branch?

Table 4.9


Respondents(N=100)

Always 30 30%

Often 34 34%

Sometimes 27 27%

Rarely 7 7%

Never 2 2%

Page | 72

Total 100 100%

Prompt services whenever visit to the branch.

No. Of Respondents0%5%

10%15%20%25%30%35%

30%34%

27%

7%2%


AlwaysOftenSometimesRarelyNever

Figure 4.9

INTERPRETATION:

From the above analysis it is concluded that 30% respondents always get prompt services

whenever they visit the branch, 34% respondents often get prompt services and 27% respondents

get sometimes prompt services and 7% get rarely prompt services whenever they visit the branch

and 2% respondents never get prompt services whenever they visit the branch.

Ques10. If another bank provides you same facilities, would you like to switch

to other bank?

Table 4.10


Respondents(N=100)

No, Not At All 48 48%

I May Consider 22 22%

Page | 73

Yes, Surely 2 2%

Can’t Say 28 28%

Total 100 100%

ANALYSIS 11: Preference of other bank over HDFC Bank.

No, Not At All

I May Consider

Yes, Surely Can't Say0%5%

10%15%20%25%30%35%40%45%50%

48%

22%

2%

28%



Figure 4.10

INTERPRETATION:

According to the above analysis, it is concluded that most of the respondents would not like to

switch to other bank and 2% respondents would surely switch to other bank and 28%

respondents can’t say anything but 22% respondents may consider other bank.

Q. 11. What is your overall satisfaction rating with HDFC Bank ?

Table 4.11


Respondents(N=100)

Very Dissatisfied 0 0%

Page | 74

Somewhat Dissatisfied 2 2%

Neutral 29 29%

Somewhat Satisfied 47 47%

Very Satisfied 22 22%

Total 100 100%

ANALYSIS11: Overall satisfaction rating with HDFC Bank current account.

Very Diss

atisfi

ed

Somew

hat Diss

atisfi

ed

Neutra

l

Somew

hat Sa

tisfied

Very Sa

tisfied

0%15%30%45%

0% 2%

29%

47%

22%



Figure 4.11

INTERPRETATION:

The above diagram shows that no respondent is very dissatisfied with HDFC Bank, only 2%

respondent is somewhat dissatisfied with the bank, 29% respondents were neutral and 47%

respondents were somewhat satisfied and 22% respondents were very satisfied with the HDFC

Bank.

Page | 75

Chapter – 5

Finding

Suggestion

Conclusion

FINDING & LEARNING

1) It is concluded that out of sample of 100 people, 92% respondents were businessman, 8%

respondents were having profession and 0% respondents were serviceman.

Page | 76

2) It is concluded that 20% respondents were a part of bank for less than 6 months, 37%

respondents were a part of bank for less than 1 year, 14% respondents were a part of bank for

less than 2 years and 29% respondents were a part of bank for more than 2 years.

3) It is concluded that 40% respondents were attracted to the bank because of its image, 30%

were attracted because of its services, 20% were attracted because of its products, and 10% were

attracted because of all three reasons.

4) It is concluded that 84% respondents were satisfied with benefits and features of current

account and 16% respondents was not satisfied with benefits and features of current account of

the HDFC Bank.

5) It is concluded that most of the respondents preferred Premium Current Account, 25%

respondents preferred Regular Current Account, 15% respondents preferred Trade Current

Account and 14% respondents preferred Plus Current Account.

6) It is concluded out of given sample of 100 respondents, 48% respondents will definitely

recommend product to others, 22% respondents will probably recommend product to others,

27% respondents will might or might not recommend, 3% respondents will probably not

recommend, but no respondent will definitely not recommend product to others.

7) It is concluded that all respondents know about extra services being provided by the bank.

8) It is concluded that out of given sample of 100 respondents , 40% respondents use ATM

services , 5% respondents use Phone banking , 5% respondents use Net Banking, 10%

respondents use Bill Payment and 40% respondents use all services.

9) It is concluded that 30% respondents always get prompt services whenever they visit the

branch, 34% respondents often get prompt services and 27% respondents get sometimes prompt

services and 7% get rarely prompt services whenever they visit the branch and 2% respondents

never get prompt services whenever they visit the branch.

10) It is concluded that most of the respondents (48%) would not like to switch to other bank and

2% respondents would surely switch to other bank and 28% respondents can’t say anything but

22% respondents may consider other bank.

Page | 77

11) It is concluded that no respondent is very dissatisfied with HDFC Bank, only 2% respondent

is somewhat dissatisfied with the bank, 29% respondents were neutral and 47% respondents were

somewhat satisfied and 22% respondents were very satisfied with the HDFC Bank.

OTHER FINDINGS:

1) Out of 100 respondents, most of the respondents were a part of the bank for less than 1

year.

2) Most of the respondents were attracted to the bank because of its image.

3) Most of the respondents were agree that HDFC Bank is providing 100% satisfaction.

4) Only 84% respondents were satisfied with benefits and features of current account of the

HDFC Bank.

5) Most of the respondents preferred Premium Current Account.

6) 56 respondents were using other bank account than HDFC Bank and 44 respondents were

not using other bank account than HDFC Bank.

7) All customers are aware of extra services offered by HDFC Bank.

8) Most of the respondents are go in for ATM services

9) It is concluded that most of the respondents would not like to switch to other bank.

10) Most of the respondents will definitely recommend product to others.

SUGGESTIONS

1. Bank should try to retain the loyal customers.

Page | 78

2. Bank should try to attract customers by its services and products

3. Bank should try to change the perception of the customers in a positive way that it

provides 100% satisfaction to its customers.

4. The bank should enhance their services according to the needs of the customer so that

they can be satisfied with benefits and features of the current account.

5. Bank should satisfy the customer in such a way that they could not switch to other bank.

6. Bank should focus on net banking and phone banking.

7. The bank should make its procedures less time consuming.

8. Bank should try to satisfy its customers in overall performance.

CONCLUSION

Page | 79

5.2.1 CONSUMER RESEARCH:

Consumer research deals with consumer and their problem and solution to the problem. This

study helps to know about the consumers need and expectation levels regarding products and

ascertainable levels of consumer satisfaction.

5.2.2 PRODUCT RESEARCH:

Under product research I came to know about the modification which consumers want so the

features and benefits of the product of the current account.

BIBLIOGRAPHY

BOOKS:

Page | 80

Kotler, P., ‘Marketing Management, South Asian Perspective” 12th Edition, 2007,

Dorling Kindersley (India) Pvt. Ltd., New Delhi Pp-45-57.

Icmr, “Marketing Management” Ifcai University, 2004, Banjara Hills, Hyderabad.

Philip Kotler, Marketing Management, 11th Ed, Princeton-Hall India 2003

Marketing Research-Naresh .K.Malhotra

Marketing Management : ICMR Publication

Business Research methods : ICMR Publication

Marketing Management - V.S. Ramaswamy,

Research

Operation Research – Vittal

Magazine:

Business Today

Business World

WEBSITES:

1. www.hdfcbank.com

2. www.scribed.com ̀

3. www.google.co.in

4. www.hdfcbank.com/personal/prd_glance.htm

5. http://en.wikipedia.org/wiki/Yes_Bank

6. http://en.wikipedia.org/wiki/State_Bank_of_India

7. http://en.wikipedia.org/wiki/Kotak_Mahindra_Bank

8. http://en.wikipedia.org/wiki/Axis_Bank

9. http://en.wikipedia.org/wiki/ICICI_Bank

10. http://www.hdfcbank.com/personal/accounts/current_accounts/plus_current_account/

plus_acc.htm

11. http://www.hdfcbank.com/personal/accounts/current_accounts/trade_current_account/

trade_acc.htm

Page | 81

http://www.hdfcbank.com/personal/accounts/current_accounts/trade_current_account/trade_acc.htm

http://www.hdfcbank.com/personal/accounts/current_accounts/trade_current_account/trade_acc.htm

http://www.hdfcbank.com/personal/accounts/current_accounts/plus_current_account/plus_acc.htm

http://www.hdfcbank.com/personal/accounts/current_accounts/plus_current_account/plus_acc.htm

http://en.wikipedia.org/wiki/ICICI_Bank

http://en.wikipedia.org/wiki/Axis_Bank

http://en.wikipedia.org/wiki/Kotak_Mahindra_Bank

http://en.wikipedia.org/wiki/State_Bank_of_India

http://en.wikipedia.org/wiki/Yes_Bank

http://www.hdfcbank.com/personal/prd_glance.htm

http://www.google.co.in/

http://www.scribed.com/

http://www.hdfcbank.com/

12. http://www.hdfcbank.com/personal/accounts/current_accounts/

premium_current_account/premium_acc.htm

13. http://www.hdfcbank.com/personal/accounts/current_accounts/regular_current_account/

regularcc_acc.htm

QUESTIONNAIRE

Page | 82

http://www.hdfcbank.com/personal/accounts/current_accounts/regular_current_account/regularcc_acc.htm

http://www.hdfcbank.com/personal/accounts/current_accounts/regular_current_account/regularcc_acc.htm

http://www.hdfcbank.com/personal/accounts/current_accounts/premium_current_account/premium_acc.htm

http://www.hdfcbank.com/personal/accounts/current_accounts/premium_current_account/premium_acc.htm

PERSONAL INFORMATION:-

NAME :-

CONTACT NUMBER :-

ADDRESS :-

OCCUPATION : - 1) Business 2) Profession 3) Service

Q. 1 Customer Profile of Surveyed Respondents

Business

Profession

Services

Total

Ques 2. HOW LONG YOU ARE A PART OF HDFC BANK?

Less than 6 months

Less than 1 year

Less than 2 years

More than 2 years

Ques 3. What are the reasons that attract you to be a customer of the bank?

Page | 83

It’s Image

It’s Services

It’s Products

All Above

Ques4. Are you satisfied with the features and benefits of the products of current account?

Yes

No

Ques 5. Which product of current account you prefer?

Regular Current Account




Ques 6 Would you recommend product of HDFC Bank to others?

Definitely

Probably

Might or might not

Probably Not

Definitely Not

Ques 7. Do you know about extra services being provided by the bank?

Page | 84

Yes

No

Ques8. Which of the following extra services of the bank would you like to go in for?

Phone Banking

ATM

Net Banking

Bill Payment

All Above

Ques9. Do you always get prompt services whenever you visit the branch?

Always

Often

Sometimes

Rarely

Never

Ques10. If another bank provides you same facilities, would you like to switch to other bank?

No, not at all

I may consider

Yes, surely

Can’t say

Page | 85

Ques11. What is your overall satisfaction rating with HDFC Bank?

Very Dissatisfied

Somewhat Dissatisfied

Neutral

Somewhat Satisfied

Very Satisfied

Page | 86

Economy & Finance

PERCEPTION TOWARDS CURRENT ACCOUNTS OF HDFC BANK