A STUDY ON SERVICE QUALITY OF HDFC BANK

A SUMMER INTERNSHIP REPORT

Submitted by

Mahak Manzoor
Roll No: 44

In partial fulfilment of the requirements for the award of the degree of

MASTERS OF BUSINESS ADMINISTRATION (MBA)

Department of Management
JAMIA HAMDARD
New Delhi - 110062
July, 2018
 CERTIFICATE
Copy of the certificate from the industry supervisor should be inserted here.
 DELCLARATION

1, MAHAK MANZOOR, Roll no. 44, Student of M.B.A 2nd year of Jamia Hamdard
hereby declare that the Summer Training Report entitled “A study on service quality of
HDFC bank” is an original work and the same has not been submitted to any other institute
for the award of any other degree. My work is carried out under the guidance of my Faculty
and Company Guide Mr. Muzamil Ashraf Branch manager, HDFC bank, Hotel Pine,
Raj Bagh, Srinagar, and Kashmir.

MAHAK MANZOOR
 ACKNOWLEDGEMENT

“It is not possible to prepare a project report without the assistance and encouragement
of other people. This one is certainly no exception.”

The success of this final report is the outcome of the valuable suggestions provided by all the
concerned without whom the report could not be completed. I would like to express my
sincere gratitude to my Faculty Dr. Fakhra Naeem and Company Guide Mr. Muzamil
Ashraf, for giving me an opportunity to do this project work and also providing me the
valuable inputs for preparing the final report, and also for providing me the necessary
facilities.

I am thankful to the staff of HDFC bank Srinagar for helping me in completion of this
project and all the customers who have been very humble in answering to my queries and
filling up of the questionnaire provided to them.

Last but not least, I would like to thank my parents who supported and encourage me at each
step of my project work.
 EXECUTIVE SUMMARY
Consumers all around the world have become more quality conscious; hence there has been
an increased customer demand for higher quality service. Service operations worldwide are
affected by this new wave of quality awareness and emphasis (Lee 2004). Therefore service
based companies like the banks are compelled to provide excellent services to their customers
in order to have sustainable competitive advantage, especially in the current trend of trade
liberalisation and globalisation.
High success of services depends on the level of satisfaction customers derive from a
service. Sales are directly related to customer satisfaction, sales increase requires
improvement in the quality of service delivery to encourage continuous success. Generally, it
is believed that services which continuously and consistently delight customers make them
happy and satisfied. In such situation, they become loyal customers and will continue to
demand the service which in turn will result in profit and growth of an organisation. Service
quality remains critical in the service industries, as businesses strive to maintain a
competitive advantage in the marketplace and achieving customer satisfaction. The financial
services, particularly banks, compete in the marketplace with generally undifferentiated
products; therefore service quality becomes a primary competitive weapon (USP).
The general objective of this project is to assess the level of service quality delivered at
HDFC bank. The focus was on the Raj bagh branch of HDFC bank located in Srinagar. The
outcome of study will enhance the banks competitive position in the banking industry and
ensure its survival. It helps us to understand what the shortcomings of the bank are and what
advantage it has over its competitors.
The project starts with the brief introduction of the banking industry. The theoretical
framework taken up for the study has been talked about. It mainly consists of service quality
of the bank as the basis of study.
Furthermore, a layout of the study structure has been presented. The method of sampling,
mood of questionnaire has been evaluated. The study is basically of descriptive nature. The
sample consisted of businessmen, salaried professional housewives and students. The area
taken for study was Srinagar city and the questionnaires were filled by 100 respondents. The
questionnaires were analysed and interpreted to reveal the key findings. Graphical
representation of each questions result has been undertaken. Further a list of suggestions is
provided to supplement the inferences drawn. The limitations faced in the project are also
enumerated. Lastly a list of references and secondary information is appended to validate the
study conducted.

INDEX
CONTENTS

• Introduction to Banking

• Company Profile

• Service Quality

• Literature Review

• Research Methodology

• Limitation of the Study

• Data Analysis and Interpretation

• Conclusion

• Recommendations

• References

• Appendices
 INTRODUCTION
Bank plays an important role in the economic development of a country. It is a financial
institution that expects deposits and channels those deposits into lending activities either
directly or through capital markets. A bank connects customers which have capital deficits to
those customers’ surpluses. The banking industry in India is facing certain challenges i.e
challenges of quality service, customer satisfaction, customer retention, customer loyalty.
Quality service plays a major role in achieving customer satisfaction and creating brand
loyalty in banking sector.

Provide service with a smile:

The present demanding saving money clients will agree to nothing less. The customer has
come to realize somewhat belatedly that the customer is the king.

Better quality of services provided by the bank has a positive influence on satisfaction of its
customers and it directly contributes to profitability of banking industry. Good quality of
service provides numerous benefits to banking industry like better corporate image,
enhancement in customer satisfaction, cross-selling opportunities, and increased chances of
word to mouth recommendation and facilitates the maintenance of log term and good
customer relationships.

The customer’s choice of one entity over another is determined by reflections of service
quality rather than any other factor in the industry. He/she wants competitive loan rates but at
the same time also wants his loan or credit card application processed in double quick time.

He/ she insists that he be promptly informed of changes in deposit rates and service charges
and he bristles with “customary rage” if his bank is slow to redress any grievance he may
have.

He/ she cherishes the convenience of impersonal net banking but during his occasional visits
to the branch he also wants the comfort of personalized human interactions and facilities that
make his banking experience pleasurable.

In short the customer wants financial house that will more than just clear his cheque and
updates his passbook: he/she wants a bank that cares and provides great services.

So des HDFC bank meet these expectations of customers?

What are the customer’s perceptions regarding service quality of the banks?
What are the dimensions of service quality where HDFC bank is performing well?

To find out answer to these questions I undertook survey of HDFC bank in Srinagar,
Kashmir.

A lot of surveys have been done in the past to understand the aspect of customer satisfaction
and to find out the service quality that customer friendly banks try to offer to clients.

My search is conducted to find out “SERVICE QUALITY OF HDFC BANK” with the help
of SERVQUAL model. The research is conducted on the basis of RATER scale.

History of Indian banking industry

Banking in India originated in the last decades of the 18th century.

The first bank was The General Bank of India, which started in 1786.
Bank of Hindustan was the 2nd bank, which started in 1790; both are now defunct.
The oldest bank in existence in India is the State Bank of India, which originated in the Bank
of Calcutta in June 1806, which almost immediately became the Bank of Bengal.
The period between 1906 and 1911, saw the establishment of banks inspired by the Swadeshi
movement. A number of banks established then have survived to the present such as Bank of
India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of
India. During the First World War (1914–1918) through the end of the Second World War
(1939–1945), and two years thereafter until the independence of India were challenging for
Indian banking.

Post Independence• India observed the emergence of large number of institutions for
providing finance to different sectors of the economy.• The entry activities of private sector
and foreign banks were restricted through branch licensing and regulation norms. Steps taken
by Indian Govt. to regulate banking are: Reserve bank of India was nationalized on January
1, 1949 under the terms of Reserve bank of India. In 1949; the Banking Regulation Act was
enacted. The Banking Regulation Act also provided that no new bank or branch of an existing
bank could be opened without a license from the RBI. No two banks could have common
directors.
Nationalization The nationalization of banks in India took place in 1969 by Mrs. Indira
Gandhi. It nationalized 14 banks. Before the steps of nationalization of Indian banks, only
State Bank of India (SBI) was nationalized. Nationalization of Seven State Banks of India
(formed subsidiary) took place on 19th July, 1960.The second phase of nationalization of
Indian banks took place in the year 1980. Seven more banks were nationalized with deposits
over200 corers. The stated reason for the nationalization was to give the government more
control of credit delivery.

COMPANY PROFILE

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to
receive an ‘in principle’ approval from the Reserve Bank of India (RBI) to set up a bank in
the private sector, as part of 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.

As on 31st March, 2015 the authorized share capital of the Bank is Rs. 550 crore. The paid-
up share capital of the Bank as on the said date is Rs501, 29, 90,634/- (2506495317) equity
shares of Rs. 2/- each). The HDFC Group holds 21.67 % of the Bank's equity and about 18.87
% of the equity is held by the ADS / GDR Depositories (in respect of the bank's American
Depository Shares (ADS) and Global Depository Receipts (GDR) Issues). 32.57 % of the
equity is held by Foreign Institutional Investors (FIIs) and the Bank has 4, 41,457
shareholders.(corporate profile)

(https://www.hdfcbank.com/aboutus/News_Room/hdfc_profile.html)

As of June 30, 2017, the bank's distribution network was at 4,715 branches and 12,260 ATMs
across 2,657 cities and towns. The bank also installed 4.30 Lacs POS terminals and issued
235.7 Lacs debit cards and 85.4 Lacs credit card in FY 2017 (Wikipedia)

HDFC bank comprises of dynamic and enthusiastic team determined to accomplish the vision
of becoming a World-class India bank. HDFC bank’s business philosophy is based on our
four core values – Customer Focus, Operational Excellence, Product Leadership and People.
They believe that the ultimate identity and success of their bank will reside in the exceptional
quality of people and their extraordinary efforts. They are committed to hiring, motivating
and retaining the best people in the industry.

BUSINESS FOCUS

HDFC Bank’s mission is to be a World Class Indian Bank. The objective is to build sound
customer franchises across distinct businesses so as to be the preferred provider of banking
services for target retail and wholesale customer segments, and to achieve healthy growth in
profitability, consistent with the bank’s risk appetite. The bank is committed to maintain the
highest level of ethical standards, professional integrity, corporate governance and regulatory
compliance. HDFC Bank’s business philosophy is based on five core values: Operational
Excellence, Customer Focus, Product Leadership, People and Sustainability. (HDFC bank
limited profile)

Vision Statement

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 five core values: Operational Excellence, Customer Focus,
Product Leadership, People and Sustainability.

Mission Statement

To our share holders, our mission is to optimize returns.

To our customers, our mission is to provide a caring service by anticipating their
requirements and innovatively satisfying them beyond their expectations.
To our staff, our mission is to identify their multi-faceted talents, develop, motivate,
recognize and reward them towards fulfilment of the institutional and national housing
vision.
To the national economy and the industry regulator, we are the key driver and thought leader,
shaping and financing the national housing policy.
To our natural environment, we enforce sustainable practices across all our activities.

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

BUSINESS STRATEGY

• Increasing market share in India’s expanding banking.

• Delivering high quality customer service.

• Maintaining current high standards for asset quality through disciplined credit risk
management.

• Develop innovative products and services that attract targeted customers and address
inefficiencies in the India financial sector.

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.

DISTRIBUTION NETWORK

HDFC Bank is headquartered in Mumbai. As of March 31, 2015, the Bank’s distribution
network was at 4,014 branches in 2,464 cities. All branches are linked on an online real-time
basis. Customers across India are also serviced through multiple delivery channels such as
Phone Banking, Net Banking, Mobile Banking and SMS based 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 11,766 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.

MANAGEMENT

Mrs. Shyamala Gopinath holds a Master’s Degree in Commerce and is a CAIIB. Mrs.
Gopinath has 39 years of experience in financial sector policy formulation in different
capacities at RBI. As Deputy Governor of RBI for seven years and member of the Board.
Mrs. Gopinath had been guiding and influencing the national policies in the diverse areas of
financial sector regulation and supervision, development and regulation of financial markets,
capital account management, management of government borrowings, forex reserves
management and payment and settlement systems.
The Managing Director, Mr. Aditya Puri, has been a professional banker for over 25 years
and before joining HDFC Bank in 1994 was heading Citibank's operations in Malaysia.
The Bank's Board of Directors is composed 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.
Senior banking professionals with substantial experience in India and abroad head various
businesses and functions and report to the Managing Director. Given the professional
expertise of the management team and the overall focus on recruiting and retaining the best
talent in the industry, the bank believes that its people are a significant competitive strength.

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
(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 Flex cube, while the Retail
Banking business by Fin ware, both from i-flex Solutions Ltd. The systems are open, scalable
and 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.

IMPORTANCE OF SERVICE QUALITY

Service quality is considered as the most critical determinant of competitiveness for

establishing and sustaining satisfying relationship with customers (Lewis, 1989). Business
firms including banks have recognized the fact that the only one best way to manage the
competition is the quality differentiation. Advance technology, customer oriented corporate
culture, a well designed service-system and excellent information system are the major
factors that decide the superior quality of service of an organization. Providing excellent
service quality and maintaining the high customer satisfaction is the important issue and the
challenge facing contemporary service industry (Hung, 2003). Thus Service Quality is an
important subject in both public and private sectors business firms and service industries.
Banking sector is not an exception to this. Before independence the banking system in India
was in private sector and in very weak position. To strengthen the banking system then
government established Reserve Bank India (RBI) in 1935 and empowered to regulate
banking companies by issue of directive, inspection, amalgamation, mergers etc. Major
action was taken 1949 by passing the Banking regulation Act which was very important in
respect of structural reforms in the banking sector. This act had given extensive regulatory
powers to RBI over the banks in India. Nationalization of banks was another major step of
the government (14 banks on 19th July, 1969 and 6 banks on 15th April, 1980) to constitute
the public sector banks. These public sector banks occupied a vital role in Indian economy in
general and banking sector in particular. Government implemented many social welfare
schemes through these banks. Prior to globalization there was very little competition in the
banking sector and the public sector banks played dominating role in terms of size of assets?
Due to changing global scenario, the government recognized the need to introduce reforms to
make banking industry more competitive. Thus, the government had made policy changes
like deregulation of interest rates and dilution of consortium lending requirement. Moreover,
banking sector had been opened up to the private sector. With this, new banks have been set
up in private sector, called as new private sector banks, foreign banks have entered the Indian
banking sector and existing banks in private sector (old private sector banks) changed their
level of operations. All these increased the competition among the banks and efficiency of the
banking industry.

SERVICE QUALITY DIMENSION - SERVICE QUALITY GAP

MODEL (SERVQUAL)
The gap model (also known as the "5 gaps model") of service quality is an important
customer-satisfaction framework. In "A Conceptual Model of Service Quality and Its
Implications for Future Research" (The Journal of Marketing, 1985), A. Parasuraman, VA
Zeitham and LL Berry identify five major gaps that face organizations seeking to meet
customer's expectations of the customer experience. SERVQUAL is one the tools used in
measuring the quality of services. According to Buttle (1996), SERVQUAL is for the
measuring and managing the quality of service. Asubeonteng et al (1996) also intimated that
the model is used to measure the quality of service from the customer's point of view. The
originators of the model are Parasuraman, Zeithamal and Berry. It was developed in 1985 but
was polished in their subsequent articles (Parasuraman et al 1988). The main aim of
SERVQUAL is to have a standard and a reliable tool that can be used to measure the quality
of services in different service sectors. Originally, those who developed SERVQUAL
introduced ten service quality dimensions or attributes. These are: 1. Tangibles, 2. Reliability,
3. Responsiveness, 4. Competency, 5. Courtesy, 6. Communication, 7. Credibility, 8.
Security, 9. Access and 10. Understanding the customer.

Table – 1 Definition of Original Ten SERVQUAL Dimensions

Sl. No. Dimension Definition

1 Tangibles Appearance of physical facilities, equipment personnel and
communication materials.
2 Reliability Ability to perform the promised service dependably and
accurately.
 3 Responsiveness Willing to help customers and provide prompt service.

4 Competence Possession of the required skills and knowledge to perform the

service.
5 Courtesy Politeness, respect consideration and friendliness of contact
personnel.
6 Credibility Trustworthiness, believability, honesty of service provider.

7 Security Freedom from danger, risk of doubt.

8 Access Approachability and ease of contact

9 Communication Keeping customers informed in language they can understand

and listening to them.
10 Understanding Making the effort to know customers and their needs
the Customer
Source: Zeithmal, Parasuraman and Berry, (1988) Delivering Quality Service, New York,
Free Press, p 21 -22 (Modified)

However, in the 1988 article, these were pruned to five (Parasuraman et al 1988). These are,
1. Tangibles, 2. Reliability, 3. Responsiveness, 4. Assurance and 5. Empathy. Tangibility
refers to the physical environment in which the service provider operates. It comprises the
physical facilities available, workers, and equipment and communication materials.
Reliability concerns the ability with which the service organization can deliver the service
dependably and accurately. Empathy on the other hand, is about the special care and attention
given to individual customers when being served. Responsiveness is also the preparedness of
the service provider to assist customers and render as quick of prompt service as possible.
Assurance too is in connection with knowledge and the courteous attitude of staff and their
ability to in still, trust and confidence in customers.

Survival of banks, in heavy competition, depends upon how the banks are providing quality
services to their customers. Service quality is a comparison of expectations with performance.
From the viewpoint of business administration, service quality is an achievement in customer
service. It reflects at each service encounter (Bhatia, Assessment of Service Quality in Public
and Private Sector Banks of India with Special Reference to Lucknow City). A customer's
expectation of a particular service is determined by factors such as recommendations by
peers, personal needs and past experiences. The expected service and the perceived service
sometimes may not be equal, thus leaving a gap. The service quality model or the 'GAP
model' developed by the authors- Parasuraman, Zeithaml and Berry at Texas and North
Carolina in 1985, highlights the main requirements for delivering high service quality. It
identifies 'gaps' that cause unsuccessful delivery of service. Customers generally have a
tendency to compare the service they 'experience' with the service they 'expect'. If the
experience does not match the expectation, there arises a gap.

Table – 3 Definition of Service Quality Dimensions

Sl. No. Dimension Definition
1 Tangibles Appearance of physical facilities, equipment personnel
and communication materials.
2 Reliability Ability to perform the promised service dependably and
accurately.
3 Responsiveness Willing to help customers and provide prompt service.
4 Assurance Knowledge and courtesy of employees and their ability
of convey trust and confidence.
5 Empathy Caring, individualized attention the firm provides its
customers.
Source: Zeithmal, Parasuraman and Berry, (1988) Delivering Quality Service, New York,
Free Press, p 26.

SERVICE QUALITY DIMENSION IN BANKS

Several researchers have suggested that the search for universal conceptualization of the
service quality construct may be futile (Levist, 1981; Lovetock, 1983). The service quality
construct is either industry or context specific (Babakus and Boller, 1992). The measurement
of the service quality construct is multidimensional. In its original structure, service quality
consists of five dimensions (Parasuraman et al., 1988; Carman, 1990; Rust and Oliver, 1994).
These are:

1. The tangibility aspects of the service

2. The reliability of the service provider

3. The assurance provided by the service provider

4. The responsiveness of the service provider; and

5. The service provider's empathy with customers

The included variables to measure the service quality of commercial banks were ranging
from seventeen to fifty seven variables (Narul Islam, 2005; Verma and Vehra, 2000; Sharma
and Mehta, 2004; Elango and Gudep, 2006; Sharma and Sharma, 2007; Bhat, 2004; Levesque
and Gorden, 1996; Bhat, 2005; Zillur, 2005; Gani and Bhat, 2003). In the present study, the
included service quality variables are twenty. (Pacific Business Review International

Volume 9 Issue 11, May 2017)

REVIEW OF LITERATURE
It is relevant to refer briefly to the previous studies and research in the related areas of the
subject to find out and to fill up the research gaps. The following are the some studies
conducted by the eminent authors and practitioners on the area of service quality of banks.

(Dhandabani, 2010) Examined the nature of linkage between service quality and customer
loyalty in Indian retail banking. Study used confirmatory factor analysis to identify the
service quality dimension. The resulted dimensions are Reliability, Responsiveness,
Knowledge and recovery; and Tangibles. The service quality dimensions lead to customer
satisfaction and the customers' satisfaction leads to customer's loyalty. The structural
equation model reveals that there is no significant direct linkage between service quality and
customers loyalty. At the same time, the service quality has a significant indirect impact on
customer's loyalty especially through customer's satisfaction.

(Maya Basant Lohani, 2012) Examined on service quality in selected banks and measured
in five dimensions by using SERVQUAL scale developed by Parasuraman et al (1988 and
revealed that there exist a small perceptual difference regarding overall service quality with
the respective banks. The study of found that banks have more concentration on the tangible
factor like a computerization, physical facilities, etc. to attract the customers.

(Jain, 2012) In their study “Customer Perception on Service Quality in Banking Sector: With
Special Reference to Indian Private Banks in Moradabad Region” try to learn and understand
the customer perception regarding service quality and to learn and understand the different
dimension of service quality in banks.

(Thakur, 2011) has presented that how service quality and customer satisfaction is related to
customer’s loyalty in Indian Banking sector’s perspective. He found that customer
satisfaction is significantly and positively related with customer loyalty and customer
satisfaction is an important mediator between service quality and customer loyalty. In the last
of the study he have discussed that banking service providers should follow right course of
action to win customer satisfaction by providing better service quality in order to create loyal
customer base.

(Desta, 2011) Studied by assessing and measuring the banking service quality perception of
the SBI branch customers; and examining the relationship between service quality, customer
satisfaction and positive word of mouth and found that the expectations of bank customers
were not met and that the largest gap was found in the reliability dimension. This dimension
also had the largest influence on customer satisfaction and overall satisfaction of bank
customers had a positive effect on their word-of-mouth. The study also suggested that input
from employees on what constitutes “service excellence” will be beneficial. The bank need to
reassess “what customers expect from the bank” and provide client specific services. It needs
to invest on employee training programs that will provide employees with an understanding
of service culture and service excellence particularly at front line levels. Employee training
programs should focus on interpersonal communication and customer care factors in order to
be able to meet the customers' need for personalized service.

(Kheng, et al. 2010) studied on the impact of service quality on customer loyalty of the
banks customers in Penang, Malaysia. They opined that a lot of competitive factors in the
form of substitutes are forcing bankers to explore the importance of customer loyalty.
Therefore, studies need to focus on the changing role of the banking system. They also found
that improvement in service quality can enhance customer loyalty.

(Dr. Rupa Rathee, 2014), studied the service quality gaps in banks after nationalization of
commercial banks. With the entry of new generation, tech-savvy, private banks the banking
sector has become too competitive. Gap analysis was applied to find the gaps between
expected and performed service in private banks to find the difference between male and
female perception and expectation. This study provided an insight into which attributes of
service quality in private bank were most important in providing satisfaction to customers
and areas where significant gaps existed. It concluded that the highest gap was found in the
dimension of reliability and empathy and suggested that the banks have to reduce this gap
giving individual personal attention to understand customer specific needs. The customers
trust the public sector banks. These banks have existed in the market for a longer period than
the private sector banks. The reliability factor is a positive factor for these banks. Therefore
private banks should position themselves in the market on the basis of this dimension and
promote themselves aggressively. It becomes imperative for the private sector banks to train
their employees to treat the customers with empathy. Statement of Problem Extensive
research has been done by eminent scholars, academicians and practitioners on service
quality in the banking industry. All these studies have concentrated on urban areas only. No
concrete study found out the perceptions of rural customers about the quality of banks'
services in India. There is a need for an extensive study on the rural customers' perceptions
on the service quality in banking service offered in rural areas. Hence this research study was
undertaken.

Mosahab, et al. (2010) presented a research that was conducted in a bank in Tehran, Iran.
This report aimed to determine the quality of services offered by Sepah Bank, and also to
study the relationship between the service quality, satisfaction and loyalty. The results of this
research showed that in all aspects, customers’ expectation, are higher than their perceptions
of the Bank’s operation, and in fact the quality of offered services is low. Besides, this
research findings show that the customer satisfaction plays the role of a mediator in the
effects of service quality on service loyalty.

Afsar, et al. (2010) worked on the determinants of customer loyalty in the banking sector of
Pakistan. They argued that banking industry needs high interaction with the customers and
that’s why managers must understand the factors which influence the loyalty. They attempted
to find the factors of customer loyalty and their relationships with the banking industry in
developing countries. They examined and found that perceived quality, satisfaction, trust,
switching cost and commitment are the factors which influence the loyalty of the customers.

J. Joshua Selvakumar (2010) studies the impact of Service Quality on Customer

Satisfaction in Public Sector and Private Sector Banks. The study examines the effect of
service quality determinants on the degree of customer satisfaction in public and private
banks in India. By realizing the gap between the perceived and actual service quality,
customer satisfaction can be extremely improved.
Dr. Manasa Nagabhushanam (2010) conducted a research study on service quality of banks
in India. The study encompasses the service quality of all the banks i.e., public sector, private
sector, and foreign banks and measures the attributes on SERVQUAL scale. The study was
conducted to analyze the expected and perceived gap among customers and bankers.

Mukta Dewan and Dr. Sadhana Mahajan (2009) studied the study of the perceived
Service Quality and its Dimensions in Private Sector Banks. The study examines that there
was a significant difference in the perception of service quality and its dimensions for the
private sector bank customers for different categories of demographic factors. The perception
of male and female customers varied significantly for the overall service quality and its
dimensions – reliability, responsiveness, assurance and empathy. It was found that the male
customers had a more positive perception of service quality as compared to the female
counterparts.

Maya Basant Lohani and Dr. POOJA Bhatia (2011) studied the Assessment of Service
Quality in Public and Private Sector Banks of India. The study was conducted to ascertain
service quality variations across selected banks by demographic variations and to measure the
customer satisfaction in selected public and private sector banks by analyzing the gap
between expectations and their perceptions of banking services.

Vibhor Jain, Dr. Sonia Gupta and Smrita Jain (2014) studied customer perception of
service quality in banking sector with special reference to India private banks. The study
examines to learn and understand the customer perception regarding service quality and
understand the different dimension of service quality in banks. The customers trust the public
sector banks. These banks have existed in the market for a longer period than the private
sector banks. There is an urgent need for the banking services to reaffirm themselves in view
of the cut-throat competition, which is close on the anvil.

Ms. Nisha Malik and Mr. Chand Prakash Saini (2011) studied Private Sector Banks
Service Quality and Customer Satisfaction by conducting an Empirical Study of two Private
Sector Banks. The aim of proposed study was to find out perception of HDFC and ICICI
bank customers regarding to the service quality parameter and gap analysis of expected and
acknowledged quality parameters, and also revels the relationship between psychographic
factors and satisfaction levels of rural and urban customers.
Akte S. and Ghosh S.K. (2006) examine the gap between expectations and perceptions of
customers in Dhaka city of Bangladesh regarding banking services with a special focus on
SERVQUAL model. The study concludes that in four dimensions like reliability, empathy,
tangibility, assurance, the gap between perceptions and expectations is significant except
responsiveness where it is insignificant means banks do not extent that level of services
which will satisfy the customers expectations. The study also suggests some
recommendations to minimize this gap.

Chapter 5
RESEARCH METHODOLOGY
Objective of the Study :

To examine the Customer satisfaction of HDFC Bank through analysing the essential
dimensions of service quality i.e. (RATER)

To identify in which service quality dimension the bank is performing sound and which part
needs improvement and suggestions so as to enhance overall service quality.

To identify the customer grievance if any.

To help bank to know what customer needs/wants from bank, such that they can transform
themselves accordingly.”

Research Design:

I decided to employ blend of exploratory research and descriptive research, as it is concerned

with discovering the general nature of the problem and the variables that relate to it. It turned
out to be descriptive while evaluating customer perceptions related to service quality of
HDFC BANK.

Source of Data:

1. Primary data

Questionnaire, Personal interview and observations.

2. Secondary data

Books, Journals, Brochures, Google, Internet & Websites etc.

DATA COLLECTION TOOL

Likert scaling is a bipolar scaling method, measuring either positive or negative response to
a statement. The questionnaire consists of two parts. The first part consists of three questions
concerning the demographic information of the respondent such as the name, age, educational
qualifications and income. The second part consisting of 18 questions exploring the
respondent’s perception about the service quality of HDFC. For evaluation of service quality
of HDFC bank service quality dimension of reliability, assurance, tangibility, empathy and
responsiveness is used in order to evaluate the actual service quality of HDFC bank. The
scale use in the study is a 5 point Likert scale which follows the pattern;

1. Strongly disagree

2. Disagree

3. Neither agree nor disagree

4. Agree

5. Strongly agree

Data Collection Method:

Data collection is done mainly through two sources namely primary and secondary.
Secondary source is nothing but utilizing somebody else’s earlier effort and work. Primary
source is when the data collection is done for the first time. I had taken up both secondary
database and to have greater accuracy I decided to go in for collection of primary database.

To tap secondary database I went through the brochures of the companies and even through
the web sites of the company.

To tap the primary database I decided to go in for Survey Method. Various tools can be used
to conduct a survey. These tools are very important to trigger a stimulus, which would bring
out their attitude and ideas. I have used Questionnaire as a tool for the above-mentioned
purpose.

A close-ended Questionnaire has been used in this Project to know the satisfaction level of
the customers of the Bank in order to improve the services in the near future.

SAMPLE DESIGN

SAMPLE SIZE: 100

SURVEY AREA: The survey was carried out in Srinagar.

SAMPLING TECHNIQUE: The sampling technique used in this research is non

probability sampling and under non probability sampling, judgemental sampling is used.
TIME FRAME: The time frame has been eight weeks.

Limitations of the Study

 “100 samples do not reflect the opinion of customers as whole.

 The data was collected only by conducting quantitative research method – distributing
questionnaires.

 Due of time constraints it is impossible to find the true calculation & there may be
possibility of committing a general error.”
 The study is only restricted to a particular location. So, it cannot be taken as a whole
representative of the banking industry.

 Many respondents can be baised towards the questions asked and there can be a lot of
reasons for not responding at all.

 Some respondents wanted to play safe and used ‘’uncertain’’ as a option which made
it difficult to arrive at a right conclusion.

DATA COLLECTION & ANALYSIS

Q. Gender

Gender Response Response in % (Sample

Size 100)

Male 72 72%

Female 28 28%
 Gender

28%
Male
Female

72%

INTERPRETATION:

From the above table and graph it is seen that

 72% respondents are male.

 28% respondents are female

Q. Age of the respondent

Age Response Response in % (Sample

Size 100)

Under 25 years 18 18%

25 - 49 years 60 60%

49– 55 years 10 10%

55 years and above 12 12%

 Age of the Respondent

12%
18%
Under 25 years
10% 25 - 49 years
49 -55 years
55 years and above

60%

INTERPRETATION:

From the above table and graph it is seen that

 18% respondent’s age are under 25.

 60%respondent’s age are 25 to 49 years.
 10%respondent’s age are 49 to 55 years.
 12%respondent’s age are 55 years and above.

Q. Annual Income

Annual Income Response Response in % (Sample

Size 100)

2 Lac 32 32%

2 – 4 Lac 26 26%

4 – 5 Lac 24 24%

Above 7 Lac 18 18%

 Annual Income

18% 2 Lac

32% 2 - 4 Lac
4 - 5 Lac
above 7 Lac

24%

26%

INTERPRETATION:

From the above table and graph it is seen that

 32% respondent’s annual income is 2 lakhs.

 60% respondent’s annual income is 2 to 4 lakhs.
 10% respondent’s annual income is 4 to 5 lakhs.
 12% respondent’s annual income is 7 lakhs above.

Q. Occupation

Occupation Response Response in % (Sample

Size 100)

Business 42 42%

Retired 10 10%

Student 8 8%

Salary based 40 40%

 Occupation

Business
Retired
40% 42% Student
Salary based

8% 10%

INTERPRETATION:

From the above table and graph it is seen that

 42% respondent’s occupation is business.

 10% respondents are retired.
 8% respondent’s are students.
 40% respondent’s are salary based.

Q. Education qualification of the respondent

Education qualification Response Response in % (Sample

Size 100)

Under Graduate 14 14%

Graduate 30 30%

Post Graduate 52 52%

Others 4 4%
 Education Qualification of the respondent

4%
14% Under Graduate
Graduate
Post Graudat
Others

52% 30%

INTERPRETATION:

From the above table and graph it is seen that

 14% respondent’s are under graduates.

 30% respondent’s are graduates.
 52% respondent’s are post graduates.
 4% respondent’s are those who have opted other options as their educational
qualifications.

Q.1. I am satisfied with the premises of the bank and it is visually appealing.

Scale Response Response in % (Sample

Size 100)

Strongly Disagree 0 0%

Disagree 4 4%

Uncertain 12 12%

Agree 48 48%

Strongly Agree 36 36%

 I am satisfied with the the premises of the bank
and it is visually appealing

4%
12% Strongly Disagree
Disagree
36% Uncertain
Agree
Strongly Agree

48%

INTERPRETATION:

Here analysis show that most of the respondents agreed with this statement. Among the total
respondents 0% strongly disagreed, 4%disagreed, 12%were uncertain, 48%agreed and
36%strongly agreed. After analysis I found that majority of the respondent’s think that HDFC
Bank has the contemporary premises which are visually appealing.

Q.2. I am satisfied with the technological up-to-date equipment’s of the bank like ATM’S.

Scale Response Response in % (Sample

Size 100)

Strongly Disagree 0 0%

Disagree 6 6%

Uncertain 12 12%

Agree 48 48%

Strongly Agree 34 34%

 I am satisfied with the technological up-to-date
equipment's of the bank like ATM'S

6%
12% Strongly Disagree
Disagree
34%
Uncertain
Agree
Strongly Agree

48%

INTERPRETATION:

HDFC Bank is having technologically modern fit equipments. From the above statement I
found out that respondent’s 0% strongly disagreed, 6%disagreed, 12%were uncertain,
48%agreed and 34%strongly agreed. Hence after analysis it is found that most of the
customers are satisfied with the technological up to date equipments.

Q.3.I am satisfied with the way the employees dress up and present themselves.

Scale Response Response in % (Sample

Size 100)

Strongly Disagree 4 4%

Disagree 8 8%

Uncertain 12 12%

Agree 42 42%

Strongly Agree 34 34%

 I am satisfied with the the way the employees
dress up and present themselves

4%
8%
Strongly Disagree
Disagree
34% 12% Uncertain
Agree
Strongly Agree

42%

INTERPRETATION:

Majority of the customers believe that the employees dress up formally and neat. The
analysis shows that respondent’s 4% strongly disagreed, 8%disagreed, 12%were neutral,
42%agreed and 34%strongly agreed. Hence after analysis it is found that most of the
customers are satisfied with the way employees present themselves.

Q.4.I am satisfied with the pamphlets distributed by the bank and they give clear and complete
information.

Scale Response Response in % (Sample

Size 100)

Strongly Disagree 10 10%

Disagree 16 16%

Uncertain 28 28%

Agree 32 32%

Strongly Agree 14 14%

 I am satisfied with the the pamphelts distrib-
uted by the bank and they give clear and
complete information

14% 10% Strongly Disagree

Disagree
Uncertain
16% Agree
Strongly Agree

32%

28%

INTERPRETATION:

Materials like pamphlets are well distributed by the Bank. The analysis shows that
respondent’s 10% strongly disagreed, 16%disagreed, 28%were neutral, 32%agreed and
14%strongly agreed. It can be concluded by saying that bank needs to work more on this
aspect as many customers were not agreeing to the fact that they receive any pamphlets. So,
they should try to make them widely available.

Q.5.When the bank staffs promises to do something by a certain time, it is delivered as promised.

Scale Response Response in % (Sample

Size 100)

Strongly Disagree 0 0%

Disagree 14 14%

Uncertain 10 10%

Agree 44 44%

Strongly Agree 32 32%

 When the bank staffs promises to do
something by a certain time, it is delivered
as promised

14% Strongly Disagree

Disagree
32% Uncertain
10% Agree
Strongly Agree

44%

INTERPRETATION:

The analysis shows that among the total respondent’s 0% strongly disagreed, 14%disagreed,
10%were neutral, 44%agreed and 32%strongly agreed. HDFC Bank has proved from my
analysis that if bank staff promises to do something by a certain time, it is delivered as
committed.

Q.6. When I face problems, the bank staff is sympathetic and reassuring.

Scale Response Response in % (Sample

Size 100)

Strongly Disagree 8 8%

Disagree 8 8%

Uncertain 10 10%

Agree 40 40%

Strongly Agree 34 34%

 When I face problems, the bank staff is sym-
pathetic and reassuring

8%
8% Strongly Disagree
Disagree
34%
Uncertain
10% Agree
Strongly Agree

40%

INTERPRETATION:

Employees in the bank are courteous at all. Whenever a customer faces any problem, they
show sincere efforts to solve it. The analysis shows that among the total respondent’s 8%
strongly disagreed, 8%disagreed, 10%were neutral, 40%agreed and 34%strongly agreed.
Hence it can be concluded that employees of the bank are highly reliable and sympathetic.

Q.7. I am satisfied with the way staff responds to my queries.

Scale Response Response in % (Sample

Size 100)

Strongly Disagree 0 0%

Disagree 6 6%

Uncertain 4 4%

Agree 64 64%

Strongly Agree 26 26%

 I am satisfied with the way staff responds to my
queries

6%
4%
26% Strongly Disagree
Disagree
Uncertain
Agree
Strongly Agree

64%

INTE RPRETATION:

The analysis shows that among the total respondent’s 0% strongly disagreed, 6%disagreed,
4%were neutral, 64%agreed and 26%strongly agreed. Customers of HDFC Bank highly
believe that the employees are able to respond to all the queries put forth.

Q.8. I am satisfied with the way the bank handles my documents and records.

Scale Response Response in % (Sample

Size 100)

Strongly Disagree 0 0%

Disagree 6 6%

Uncertain 4 4%

Agree 54 54%

Strongly Agree 36 36%

 I am satisfied with the way the bank handles
my documents and records

6%
4%
Strongly Disagree
Disagree
36% Uncertain
Agree
Strongly Agree

54%

INTERPRETATION:

HDFC Bank has proved to provide expedite records. The analysis shows that 36%of the
customers think that they are satisfied with the maintenance procedure of their account,
54%agreed, 4%were neutral, 6%disagreed and 0%strongly disagreed with the statement.

Q.9.The bank provides quick services.

Scale Response Response in % (Sample

Size 100)

Strongly Disagree 2 2%

Disagree 8 8%

Uncertain 6 6%

Agree 52 52%

Strongly Agree 32 32%

 The bank provides quick services

2%
8%
6%
32% Strongly Disagree
Disagree
Uncertain
Agree
Strongly Agree

52%

INTERPRETATION:

The analysis shows that 32%of the customers think that they are satisfied with the
maintenance procedure of their account, 52%agreed, 6%were neutral, 8%disagreed and
2%strongly disagreed with the statement. Hence it can be concluded that bank staff tells the
customer the exact timing of providing the services which is observed to be very quick every
time.

Q.10.Employees in the bank is never too busy to respond to my request.

Scale Response Response in % (Sample

Size 100)

Strongly Disagree 2 2%

Disagree 27 27%

Uncertain 18 18%

Agree 40 40%

Strongly Agree 18 18%

 Employees in the bank is never too busy to
respond to my request

2%
18%
Strongly Disagree
27% Disagree
Uncertain
Agree
Strongly Agree

40% 18%

INTERPRETATION:

As per the analysis of the data collected by me, 18% strongly agreed, 40% agreed, 18% were
neutral, 22% disagreed and only 2% strongly disagreed with the statement. Hence, we can
conclude by saying that employees of HDFC Bank manage to provide prompt service.

Q.11.The Employees are willing and ready to help customers.

Scale Response Response in % (Sample

Size 100)

Strongly Disagree 0 0%

Disagree 4 4%

Uncertain 8 8%

Agree 48 48%

Strongly Agree 40 40%

 The Employees are willing and ready to help
customers

4%
8%
Strongly Disagree
Disagree
Uncertain
40%
Agree
Strongly Agree

48%

INTERPRETATION:

Employees in the HDFC bank are willing and ready to help the customers. As per the
analysis of my data it is shown that 40% of the respondents strongly agreed 48% agreed 8%
of were neutral and there was no respondent who strongly disagreed with the statement. This
shows that HDFC bank focuses on maintaining the correct policy and for the establishment of
healthy relationships with the customers.

Q.12.I am satisfied with the bank service of sending timely bank statement and other information
related to my account.

Scale Response Response in % (Sample

Size 100)

Strongly Disagree 0 0%

Disagree 4 4%

Uncertain 12 12%

Agree 50 50%

Strongly Agree 34 34%

 I am satisfied with the bank service of sending
timely bank statement and other information
related to my account

4% Strongly Disagree
12% Disagree
Uncertain
34%
Agree
Strongly Agree

50%

INTERPRETATION:

As per the analysis there was no respondent who strongly disagreed with the statement 4%
disagreed 12% were uncertain and 50% agreed and 34% strongly agreed with the fact that
they are satisfied with the bank service of providing timely bank statement and other
information related to their accounts. So we can conclude that the satisfaction level of the
customers with respect to the statement is rated high.

Q.13.The employees of the bank are trustworthy.

Scale Response Response in % (Sample

Size 100)

Strongly Disagree 0 0%

Disagree 0 0%

Uncertain 18 18%

Agree 44 44%

Strongly Agree 38 38%

 The employees of the bank are trustworthy

18%

Strongly Disagree
38% Disagree
Uncertain
Agree
Strongly Agree

44%

INTERPRETATION:

As per the findings 38% of the respondents strongly agreed 44% agreed 18% were answered
and 0% disagreed with the statement. It was well observed during the research that the
customers had full faith and trust on the employees because I had personally seen that many
of the customers used to provide sensitive information with ultimate trust.

Q.14.The employees put a lot of effort to retain the customers.

Scale Response Response in % (Sample

Size 100)

Strongly Disagree 0 0%

Disagree 8 8%

Uncertain 10 10%

Agree 44 44%

Strongly Agree 38 38%

 The employees put a lot of effort to retain the
customers

8%

10% Strongly Disagree

Disagree
38% Uncertain
Agree
Strongly Agree

44%

INTERPRETATION:

Among the total customers 38% strongly agreed 44% agreed were uncertain and 8%
disagreed with the fact that employs of HDFC bank put a lot of effort to retain the customers.
I have observed that if any of the customers faces any problem and the employees are liable
for it, the employees make sure that they talk in a very positive and polite manner to solve the
problem and in order to retain the customer permanently.

Q.15.I feels safe in doing transactions with the bank.

Scale Response Response in % (Sample

Size 100)

Strongly Disagree 0 0%

Disagree 2 2%

Uncertain 6 6%

Agree 50 50%

Strongly Agree 42 42%

 I feels safe in doing transaction with the bank

2% 6%

Strongly Disagree
Disagree
42% Uncertain
Agree
Strongly Agree

50%

INTERPRETATION:

Safeties always have been a major concern for a customer while choosing the right bank. The
customers of HDFC bank feel very safe while doing transactions with the bank. As it is very
evident from the data collected 42% strongly agreed with the statement and 50% agreed with
the statement and there was no respondent who strongly disagreed with the statement.

Q.16. Employees in the bank has the knowledge to answer my questions.

Scale Response Response in % (Sample

Size 100)

Strongly Disagree 0 0%

Disagree 0 0%

Uncertain 12 12%

Agree 62 62%

Strongly Agree 26 26%

 Employees in the bank has the knowledge to
answer my questions

12%
26% Strongly Disagree
Disagree
Uncertain
Agree
Strongly Agree

62%

INTERPRETATION:

No doubt all the employees in HDFC bank are very knowledgeable to answer all the queries
of the customers as nowadays banks have made criteria to recruit only trained employees who
are going to be considered as an asset for the company. As per the findings 26% strongly
agreed 62% agreed 12% were neutral and 0% disagreed with the statement.

Q.17.The bank gives me individual attention.

Scale Response Response in % (Sample

Size 100)

Strongly Disagree 0 0%

Disagree 6 6%

Uncertain 8 8%

Agree 66 66%

Strongly Agree 20 20%

 The bank gives me individual attention

6%
20% 8%
Strongly Disagree
Disagree
Uncertain
Agree
Strongly Agree

66%

INTERPRETATION:

HDFC bank has been able to provide individual attention to its customers. As per the data
collected it shows that 20% strongly agreed 66% agreed with the statement 8% were neutral
6% disagreed and 0% strongly disagreed with the statement.

Q.18.The operating hours of the bank is convenient to me.

Scale Response Response in % (Sample

Size 100)

Strongly Disagree 0 0%

Disagree 6 6%

Uncertain 10 10%

Agree 58 58%

Strongly Agree 26 26%

 The operating hours of the bank is convenient
to me

6%
10% Strongly Disagree
26%
Disagree
Uncertain
Agree
Strongly Agree

58%

INTERPRETATION:

The operating hours of the bank are convenient to the customers. The data collected shows
that 58% agree with the statement and 6% disagree with the statement 10% will neutral and
0% strongly disagreed.

Q.19.The bank staff provides me with the products and services that are best suited to me.

Scale Response Response in % (Sample

Size 100)

Strongly Disagree 0 0%

Disagree 14 14%

Uncertain 26 26%

Agree 40 40%

Strongly Agree 20 20%

 The bank staff provides me with the products
and services that are best suited to me

14%
20% Strongly Disagree
Disagree
Uncertain
Agree
Strongly Agree
26%

40%

INTERPRETATION:

The data analysis shows that 20% of the respondents strongly agreed 40% agreed 26% were
uncertain 14% disagreed and No respondent strongly disagreed with the statement. Somehow
it has been seen that the bank staff has not been able to provide the correct choice of products
and services to the customers. Hence they should try to fill the gap in order to position right
image of the company in the eyes of the customers.

Q.20.The employees of the bank understand my specific needs.

Scale Response Response in % (Sample

Size 100)

Strongly Disagree 0 0%

Disagree 2 2%

Uncertain 26 26%

Agree 48 48%

Strongly Agree 24 24%

 The employees of the bank understand my
specific needs

2%
24% Strongly Disagree
26% Disagree
Uncertain
Agree
Strongly Agree

48%

INTERPRETATION:

As per the analysis 26% were uncertain and 48% agreed 24% strongly agreed 2% disagreed
and 0% strongly disagreed with the fact that employees of the bank understand our specific
needs.

Q.21.I am satisfied with the overall service quality of HDFC bank.

Scale Response Response in % (Sample

Size 100)

Strongly Disagree 0 0%

Disagree 0 0%

Uncertain 2 2%

Agree 56 56%

Strongly Agree 42 42%

 I am satisfied with the overall service quality of
HDFC bank

2%
Strongly Disagree
Disagree
Uncertain
42% Agree
Strongly Agree

56%

INTERPRETATION:

The respondents were satisfied with the overall service quality of HDFC bank. As it is quite
evident from the research that 56% of the respondents agreed with the statement 42%
strongly agreed 2% were neutral 0% disagreed and there was no respondent who strongly
disagreed with the statement.

Learnings

1. A satisfied customer in 10 years will bring 100 more customers to the

company.

2. It costs 7 times more to attract a new customer than to serve an old one.

3. 20% of the company’s loyal customers account for 80% of its revenues.

(Pareto’s principle).

4. The chances of selling to an existing customer are 1 in 2, the chances of

selling to a new customer are 1 in 16.

5. Every part of the company’s marketing effort should be geared towards

building lifetime relationships.

 6. People want to do business with friendly people. To have effective relations a

friendly attitude must permeate in the organization.

7. Information technology developments should be positively used to serve the

customers.

8. The company should always be flexible to bend its rules and procedures in

the client’s favour.

9. The company should communicate with its customers even when it is not

trying to sell something.

10. The company can communicate and develop stronger customer bonding by

providing financial and social benefits.

11. The company should try to know all its customers including their lifestyles,

hobbies, likes and dislikes etc.

12. The company should make it a point to deliver more than what is promised.

Conclusion

“Customer satisfaction depends on the performance relative to a expectations. A key

premise in customer satisfaction is understanding the needs and meeting or exceeding the
expectations of customers. Furthermore, this is done while optimally using resources. While
most companies have developed strategies to improve quality and external customer
service,” “internal customer satisfaction is a much neglected component of quality
improvement. To this end, it is important to emphasize that total customer satisfaction can
be attained only if all employees devoted to external customer satisfaction can work
together and assist each other to achieve the common objective, when the internal customer
isn't satisfied, Relationships with the external customer suffer. So, it is suggested to adopt
customer oriented approach to keep the internal customer satisfied and motivated, who in
turn will focus their attention and energy upon meeting the requirements of their customers,
thereby maximizing the customer, thereby maximizing the customer satisfaction.”
Customer satisfaction survey is the process to monitor the satisfaction quotient of their
people. In internal satisfaction surveys therefore tracks the return on your investments in
keeping your people happy, high salaries, a quality culture, a healthy work environment.”
The services and products of HDFC bank have been capturing the customer interest &it has
grown substantially in a short course of time. “

Recommendations

 “HDFC Bank can open and expand its branches in rural areas to trap more customers for
the bank.”
 “The forthcoming schemes should be sent to the customers along with their quarterly
&monthly statements.”
 “Banks would have to find the way to provide door-to-door services for its customers, as
it is very much convenient for any businessman & shopkeeper of any particular area.”
 Competitive strategy can be adopted so that the market could be captured.
 “Customers generally prefer funding from Loans, therefore more emphasis should be
given on loan provisions.”

BIBLIOGRAPHY
References:
Lovelock, C (2001). Service marketing: People, technology, Prentice Hall.
Kotler Philip, marketing management, (Pearson education, 12th edition)
Gronroos, C. (1984), “A service quality model and its marketing implications.
Malhotra K. Naresh, marketing research (An applied orientation), Research design, (Prentice
hall of India Pvt. 5th edition)
Zeitham & Gupta. (2006). Customer Metrics and Their Impact on Financial Performance
Marketing Science. 25 (6), 718-739
M.K. Rampal: Service Marketing.

Websites:
www.slideshare.net
www.pbr.co.in
www.skprojectwork.com
www.oaji.net
ANNEXURE

QUESTIONNAIRE
Survey regarding the assessment of the service quality of HDFC bank:

DIRECTIONS: This survey asks you about how well HDFC bank serves customers. Show
your opinion by circling one of the five (5) numbers next of each statement. If you think the
HDFC bank extremely dissatisfies you select 1. If the bank extremely satisfies you select (5).
If your feelings are not strong, circle one of the numbers in the middle.

Gender:
Age:
Annual Income:
Occupation:
Educational Qualifications:

1 2 3 4 5
Strongly Disagree Uncertai Agree Strongly
Disagree n Agree

Q.1. I am satisfied with the premises

of the bank and it is visually
appealing.

Q.2. I am satisfied with the

technological up-to-date
equipment’s of the bank like
ATM’S.

Q.3.I am satisfied with the way the

employees dress up and present
themselves.
Q.4.I am satisfied with the
pamphlets distributed by the bank
and they give clear and complete
information.

Q.5.When the bank staffs promises

to do something by a certain time, it
is delivered as promised.

Q.6. When I face problems, the bank

staff is sympathetic and reassuring.

Q.7. I am satisfied with the way staff

responds to my queries.

Q.8. I am satisfied with the way the

bank handles my documents and
records.

Q.9.The bank provides quick

services.

Q.10.Employees in the bank is never

too busy to respond to my request.

Q.11.The Employees are willing and

ready to help customers.

Q.12.I am satisfied with the bank

service of sending timely bank
statement and other information
related to my account.

Q.13.The employees of the bank are

trustworthy.

Q.14.The employees put a lot of

effort to retain the customers.

Q.15.I feels safe in doing

transactions with the bank.

Q.16. Employees in the bank has the

knowledge to answer my questions.

Q.17.The bank gives me individual

attention.
Q.18.The operating hours of the
bank is convenient to me.

Q.19.The bank staff provides me

with the products and services that
are best suited to me.

Q.20.The employees of the bank

understand my specific needs.

Q.21.I am satisfied with the overall

service quality of HDFC bank.