DECLARATION

I hereby declare that project entitled "CUSTOMER SATISFACTION

REGARDING HDFC BANK" submitted to PUNJAB TECHNICAL UNIVERSITY,
JALANDHAR in partial fulfillment of the requirement for Master Degree of
business administration (SEM-IIIrd) is my original work. It is by my own
and not copied one from other.
VARUN BAWA
MBA 3RD SEM
81407317174
Dated:
CT INSTITUTEOF MGT. AND IT
Acknowledgement
This project report bears the imprint of those who had rendered their
wholehearted support and encouragement without whose help this effort
of mine would be in vain. I express my deep sense of gratitude and sincere
thanks to my project guide Sr. Lect. Arti Mehta for his directions, suggestion
and information provided which were of utmost importance for the
successful completion of the project. I am also thankful to Mr. Rajiv Bhatia
for his proper guidance. I thankful to the employees of HDFC Bank for
assisting me in the timely completion of project.
At last, I also thank to my family and my friends those helped me in my
training period and in the completion of project.
PREFACE
Without practical training, management education is meaningless so long
with the theory; practical training is provided to management students to
expose them to the actual working environment of any organization. Such
training provides a framework of knowledge relating to the concepts and
practices of the assigned topics in the organization.
The summer training is an integral part of the course curriculum of Master
of Business Administration (M.B.A. 3rd). In this the student is in the
position to analyze the integral working of an organization with mature
eyes and understand the dynamics in a much better manner.
This particular project has been conducted at HDFC Bank. In the first phase
of the research project, there is an introduction of Banking, company profile
and products of HDFC Bank are given. After that market research is
performed with a sample size of 100 people. The research study was
limited to Gurdaspur. Here, in my survey, I have contacted the respondents
through personal interviews with the help of questionnaires.
The main objective of the research is to know the customer satisfaction
level and their perception regarding HDFC Bank and to know the customer
awareness regarding the HDFC Bank's products.
HDFC Bank should lay more stress on advertisements, both in print as well
as in other media. Opening up the sector will certainly mean new products,
better packaging and improved customer service. Both new and existing
players will have to explore new distribution and marketing channels.
Potential buyers for most of Banks lie in the middle class. Competitors must
segment the market carefully to arrive at appropriate products and pricing.
Recognizing the potential, in the past three years, the nationalized Banks
have already begun to target niches like pensions, women, children and
rural peoples.
EXECUTIVE SUMMARY
The report contains the organizational study done at HDFC Bank. The
report title is "CUSTOMER SATISFACTION REGARDIND HDFC BANK”.
The report gives an overview of the banking Sector and company profile.
And awareness of customers about different types of products and services
offered by HDFC Bank.
This study was conducted to find out the customer satisfaction regarding
HDFC bank.
The methodology adopted for the study was through a structured
questionnaire, which is targeted to the different persons in Gurdaspur. For
this purpose sample size of 100 was taken. The data collected from the
different persons was analyzed thoroughly and presented in the form of
charts and tables.
HDFC must advertise regularly and create brand value for its products and
services. Most of its competitors like ICICI, Axis, kotak Mahindra and
nationalized banks use television advertisements to promote their
products. The Indian consumer has a false perception about private banks -
they feel that it would not safe.
Safety and returns are the two main reasons people invest in banks. On the
whole HDFC bank is a good place to work at. Every new recruit is provided
with extensive training on the products of HDFC. This training enables an
advisor/sales manager to market the policies better. The company should
try to create awareness about itself in India. . With an improvement in the
sales techniques used, a fair bit of advertising and modifications to the
existing product portfolio, HDFC would be all set to capture the banking
market in India as it has around the globe.
What is customer satisfaction?
Customer satisfaction refers to how satisfied customers are with the
products or services they receive from a particular agency. The level of
satisfaction is determined not only by the quality and type of customer
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.
Customers in human services are commonly referred to as service users,
consumers or clients. They can be individuals or groups. An organization
with a strong customer service culture places the customer at the centre of
service design, planning and service delivery. Customer centric
organizations will:
❖ Determine the customer's expectations when they plan listen to the
customer as they design.
❖ Focus on the delivery of customer service activities value customer
feedback when they measure performance.
Why is it important?
There are a number of reasons why customer satisfaction is important in
Banking Sector:
Meeting the needs of the customer is the underlying rationale for the
existence of community service organizations. Customers have a right to
quality services that deliver outcomes.
• Organizations that strive beyond minimum standards and exceed the
expectations of their customers are likely to be leaders in their sector.
• Customers are recognized as key partners in shaping service development
and assessing quality of service delivery.
The process for measuring customer satisfaction and obtaining feedback on
organizational performance are valuable tools for quality and continuous
service improvement.
INTRODUCATION TO BANKING

Banking means accepting the deposits from the customers for lending to
the needy and extending the other services as to issue of dd etc.nowadays
after introduction of private sector banks the banks have become a profit
centre and the functions become changed and now banks are doing the
insurance and mutual funds also. but nationalised banks are still service
oriented in extending loans for Education loan, and rural development
activities.
A Bank is an organization which lends money to the borrowers for a
purposeful task, and provides a facility to deposit and withdraw money
when needed and charge for it.
History of banking in India

Phase I
The General Bank of India was set up in the year 1786. Next came Bank of
Hindustan and Bengal Bank. The East India Company established Bank of
Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as
independent units and called it Presidency Banks. These three banks were
amalgamated in 1920 and Imperial Bank of India was established which
started as private shareholders banks, mostly Europeans shareholders. In
1865 Allahabad Bank was established and first time exclusively by Indians,
Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore.
Between 1906 and 1913, Bank of India, Central Bank of India, Bank of
Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up.
Reserve Bank of India came in 1935.
During the first phase the growth was very slow and banks also
experienced periodic failures between 1913 and 1948. There were
approximately 1100 banks, mostly small. To streamline the functioning and
activities of commercial banks, the Government of India came up with The
Banking Companies Act, 1949 which was later changed to Banking
Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965).
Reserve Bank of India was vested with extensive powers for the supervision
of banking in India as the Banking Authority.
During those days public has lesser confidence in the banks. As an
aftermath deposit mobilisation was slow. Abreast of it the savings bank
facility provided by the Postal department was comparatively safer.
Moreover, funds were largely given to traders.
Phase II
Government took major steps in this Indian Banking Sector Reform after
independence. In 1955, it nationalised Imperial Bank of India with
extensive banking facilities on a large scale especially in rural and semi-
urban areas. It formed State Bank of India to act as the principal agent of
RBI and to handle banking transactions of the Union and State
Governments all over the country.
Seven banks forming subsidiary of State Bank of India was nationalised in
1960 on 19th July, 1969, major process of nationalisation was carried out. It
was the effort of the then Prime Minister of India, Mrs. Indira Gandhi. 14
major commercial banks in the country were nationalised.
Second phase of nationalisation Indian Banking Sector Reform was carried
out in 1980 with seven more banks. This step brought 80% of the banking
segment in India under Government ownership.
The following are the steps taken by the Government of India to Regulate
Banking Institutions in the Country:
1949: Enactment of Banking Regulation Act.
1955: Nationalisation of State Bank of India.
1959: Nationalisation of SBI subsidiaries.
1961: Insurance cover extended to deposits.
1969: Nationalisation of 14 major banks.
1971: Creation of credit guarantee corporation.
1975: Creation of regional rural banks.

After the nationalisation of banks, the branches of the public sector bank
India rose to approximately 800% in deposits and advances took a huge
jump by 11,000%.
Banking in the sunshine of Government ownership gave the public implicit
faith and immense confidence about the sustainability of these institutions.
Phase III
This phase has introduced many more products and facilities in the banking
sector in its reforms measure. In 1991, under the chairmanship of M
Narasimham, a committee was set up by his name which worked for the
liberalisation of banking practices.
The country is flooded with foreign banks and their ATM stations. Efforts
are being put to give a satisfactory service to customers. Phone banking and
net banking is introduced. The entire system became more convenient and
swift. Time is given more importance than money.
The financial system of India has shown a great deal of resilience. It is
sheltered from any crisis triggered by any external macroeconomics shock
as other East Asian Countries suffered. This is all due to a flexible exchange
rate regime, the foreign reserves are high, the capital account is not yet fully
convertible, and banks and their customers have limited foreign exchange
exposure.
BANKING STRUCTURE IN INDIA
Scheduled Banks in India
(A) Scheduled Commercial Banks
Public sector Banks
Private sector
Banks
Foreign Banks in India
Regional Rural Bank
(28)
(27)
(29)
(102)
Nationalized
Bank
Other Public
Sector Banks
(IDBI)
SBI and its
Associates
(B) Scheduled Cooperative Banks
Scheduled Urban Cooperative Banks (55)
Scheduled State Cooperative Banks (31)
Here we more concerned about private sector banks and competition
among them. Today, there are 27 private sector banks in the banking Sector:
19 old private sector banks and 8 new private sector banks. These new
banks have brought in state-of-the-art technology and aggressively
marketed their products. The Public sector banks are facing a stiff
competition from the new private sector banks. The banks which have been
setup in the 1990s under the guidelines Of the Narasimham Committee are
referred to as NEW PRIVATE SECTOR BANKS.

INDIAN BANKING INDUSTRIES

The Indian banking market is growing at an astonishing rate, with Assets

expected to reach US$1 trillion by 2010. An expanding Economy, middle
class, and technological innovations are all Contributing to this growth.
The country's middle class accounts for over 320 million people. In
correlation with the growth of the economy, rising income levels, increased
standard of living, and affordability of banking products are promising
factors for continued expansion.
Growth in Indian Banking Assets
(US$ Billions)

The Indian banking Industry is in the middle of an IT revolution, focusing

on the expansion of retail and rural banking. Players are becoming
increasingly customer centric in their approach, which has resulted in
innovative methods of offering new banking products and services. Banks
are now realizing the importance of being a big player and are beginning to
focus their attention on mergers and acquisitions to advantage of
economies of scale and/or comply with Basel II banking industry assets are
expected to reach US$1 trillion by 2010 receive a greater infusion of foreign
capital," says Prathima Rajan, analyst in Celent's banking group and author
of the report."The banking industry should focus on having a small number
of large players that can compete globally rather than having a large
number of fragmented players."
regulation. "Indian and are poised to receive a greater infusion of foreign
capital," says Prathima Rajan, analyst in Celent's banking group and author
of the report.“The banking industry should focus on having a small number
of large players that can compete globally rather than having a large
number of fragmented players."
UPCOMING FOREIGN BANKS IN INDIA
By 2009 to 2010 few more names is going to be added in the list of foreign
banks in India. This is as an aftermath of the sudden interest shown by
Reserve Bank of India paving roadmap for foreign banks in India greater
freedom in India. Among them is the world's best private bank by Euro
Money magazine, Switzerland's UBS.
The following are the list of foreign banks going to set up business in India:-
 Royal Bank of Scotland
 Switzerland's UBS
 US-based GE Capital
 Credit Suisse Group
 Industrial and Commercial Bank of China
HDFC Bank (logo)

The Housing Development Finance Corporation Limited (HDFC) was

amongst the first to receive an 'in principle' approval from the
Reserve Bank of India (RBI) to set up a bank in the private sector, as
part of the RBI's 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.
HDFC is India's premier housing finance company and enjoys an
impeccable track record in India as well as in international markets.
Since its inception in 1977, the Corporation has maintained a
Consistent and healthy growth in its operations to remain the market
leader in mortgages. Its outstanding loan portfolio covers well over a
million dwelling units. HDFC has developed significant expertise in
retail mortgage loans to different market segments and also has a
large corporate client base for its housing related credit facilities.
With its experience in the financial markets, a strong market
reputation, large shareholder base and unique consumer franchise,
HDFC was ideally positioned to promote a bank in the Indian
environment.
HDFC Bank began operations in 1995 with a simple mission to be a
"World Class Indian Bank." It realized that only a single minded focus
on product quality and service excellence would help us get there.
Today, the Bank is proud to say that it is well on its way towards that
goal.
HDFC bank ltd provides various financial products and services. It
operates in three segments: Retail Banking, Wholesale Banking, and
Treasury. The Retail banking segment provides various deposit
products, including savings Accounts, current accounts, fixed
deposits, and demat accounts. It also offers Auto, personal,
commercial vehicle, home, gold, and educational loans; loans Against
securities and property and health care finance Working capital
finance, construction equipment finance, and warehouse Receipt
loans, as well as credit cards, debit cards, depository, investment
Advisory, bill payments, and transactional services. In addition, this
segment Sells third party financial products, such as mutual funds
and insurance, as Well as distributes life and general insurance
products through its tie-ups with insurance companies and mutual
fund houses. The wholesale banking Segment provides loans, non-
fund facilities, and transaction services to large Corporate, emerging
corporate, small and medium enterprise, supply chain, Public sector