Você está na página 1de 52

Product Penetration and Digitalization

Project Undertaken at
HDFC Bank Ltd

Project Mentors:

Mr. Ashish Verma, Branch Manager, HDFC Bank Phase 3B2, Mohali.

Mr. Dinesh Seth, Cluster Head Mohali.

Report submitted in Partial Fulfilments of the requirements for award of

Master of Business Administration (MBA) 2016-18


Nikhil Gharu

MBA, University Business School

Panjab University.
I take this opportunity to express my deep sense of gratitude, thanks and regards
towards all of those who have directly or indirectly helped me in the successful
completion of this project.
I am ineffably indebted to Mr. Ashish Verma, Branch Manager, HDFC Bank
Phase 3B2 Mohali and Mr. Ankush Taneja, Imperia Relationship Manager,
HDFC Bank Phase 3B2 Mohali and Mr. Dinesh Seth, Cluster Manager Mohali
for their conscientious guidance and encouragement to accomplish this assignment.
Their able guidance at each step of the project helped me to broaden my outlook on
the project and in successful completion of the project.

I am extremely thankful and pay my gratitude to my faculty Prof. Deepak Kapur

and Asst. Professor Purva Kansal for their valuable guidance and support on
completion of this project.

I would also like to thank HDFC bank Staff for their wonderful support & inspirable
I am grateful to all faculty members of UBS, Chandigarh and my friends who have
helped me in the successful completion of this project.
Last but not the least I am indebted to my parents and family who provided me their
time, support and inspiration needed to prepare this report.

Nikhil Gharu

I undersigned Nikhil Gharu student of MBA declare that I have done the project on
Product Penetration and Digitalization has been personally done by me under the
guidance of Mr. Ashish Verma (Branch Manager, HDFC Bank) in partial fulfillment
of MBA Program during academic year: 2016-18. All the data represented in this
project is true & correct to the best of my knowledge & belief.
I hope that this project will be beneficial to the Organization.

Nikhil Gharu
1. Introduction
1.1 History of Banking
1.2 Mission, Vision & Business Strategy
1.3 Board of Directors and Business Heads
1.4 Awards
1.5 Integrated financial Service
1.6 Business Statement
1.7 Objective of Study
1.8 Problem Definition
1.9 Importance of Study.

2. HDFC Bank Products for manufacturer and traders

3. Review of Literature

4. Research Methodology
4.1 Research Design
4.2 Sample
4.3 Sampling
4.4 Data Collection.
4.5 Data Analysis.

5. Analysis
5.1 Descriptive Analysis
5.2 Inferential Analysis

6. Findings
6.1 Conclusion.
6.2 Managerial Implication
6.3 Limitation



1.1 History of Banking

Banking is nearly as old as civilization. The history of banking could be said to have
started with the appearance of money. The first record of minted metal coins was in
Mesopotamia in about 2500B.C. the first European banknotes, which was handwritten
appeared in1661, in Sweden. Cheque and printed paper money appeared in the 1700s
and 1800s, with many banks created to deal with increasing trade.
The history of banking in each country runs in lines with the development of trade and
industry, and with the level of political confidence and stability. The ancient Romans
developed an advanced banking system to serve their vast trade network, which
extended throughout Europe, Asia and Africa.
Modern banking began in Venice. The word bank comes from the Italian word ban
co, meaning bench, because moneylenders worked on benches in market places. The
bank of Venice was established in 1171 to help the government raise finance for a
At the same time, in England merchant started to ask goldsmiths to hold gold and
silver in their safes in return for a fee. Receipts given to the Merchant were sometimes
used to buy or sell, with the metal itself staying under lock and key. The goldsmith
realized that they could lend out some of the gold and silver that they had and charge
interest, as not all of the merchants would ask for the gold and silver back at the same
time. Eventually, instead of charging the merchants, the goldsmiths paid them to
deposit their gold and silver.
The bank of England was formed in 1694 to borrow money from the public for the
government to finance the war of Augsburg against France. By 1709, goldsmith were
using bank of England notes of their own receipts.
New technology transformed the banking industry in the 1900s round the world,
banks merged into larger and fewer groups and expanded into other country.

Banking Structure in India
In todays dynamic world banks are inevitable for the development of a country.
Banks play a pivotal role in enhancing each and every sector. They have helped bring
a draw of development on the worlds horizon and developing country like India is no
Banks fulfills the role of a financial intermediary. This means that it acts as a vehicle
for moving finance from those who have surplus money to (however temporarily)
those who have deficit. In everyday branch terms the banks channel funds from
depositors whose accounts are in credit to borrowers who are in debit.
Without the intermediary of the banks both their depositors and their borrowers would
have to contact each other directly. This can and does happen of course. This is what
has lead to the very foundation of financial institution like banks.
Before few decades there existed some influential people who used to land money.
But a substantially high rate of interest was charged which made borrowing of money
out of the reach of the majority of the people so there arose a need for a financial
The Bank have developed their roles to such an extent that a direct contact between
the depositors and borrowers in now known as disintermediation.
Banking industry has always revolved around the traditional function of taking
deposits, money transfer and making advances. Those three are closely related to each
other, the objective being to lend money, which is the profitable activity of the three.
Taking deposits generates funds for lending and money transfer services are necessary
for the attention of deposits. The Bank have introduced progressively more
sophisticated versions of these services and have diversified introduction in numerable
areas of activity not directly relating to this traditional trinity.
Indian Banking System

Reserve Bank of India

Schedule Banks Non-Schedule

Central co-op
State co-op Commercial Banks and Commercial Banks
Banks Banks Primary Cr.

Indian Foreign

Public Sector
Banks Private Sector HDFC,
Banks ICICI etc.

State Bank of Other Nationalized Regional Rural

India and its Banks Banks

Indian Banking Industry Analysis

The banking scenario in India has been changing at fast pace from being just the
borrowers and lenders traditionally, the focus has shifted to more differentiated and
customized product/service provider from regulation to liberalization in the year 1991,
from planned economy to market.
Economy, from licensing to integration with Global Economics, the changes have
been swift. All most all the sector operating in the economy was affected and banking
sector is no exception to this. Thus the whole of the banking system in the country has
undergone a radical change. Let us see how banking has evolved in the past 57 years
of independence.
After independence in 1947 and proclamation in 1950 the country set about drawing
its road map for the future public ownership of banks was seen inevitable and SBI was
created in 1955 to spearhead the expansion of banking into rural India and speed up
the process of magnetization.
Political compulsions brought about nationalization of bank in 1969 and lobbying by
bank employees and their unions added to the list of nationalized banks a few years
Slowly the unions grew in strength, while bank management stagnated. The casualty
was to the customer service declined, complaints increased and bank management was
unable to item the rot.
In the meantime, technology was becoming a global phenomenon lacking a vision of
the future and the banks erred badly in opposing the technology up gradation of
banks. They mistakenly believed the technology would lead to retrenchment and
eventually the marginalization of unions.
The problem faced by the banking industry soon surfaced in their balance sheets. But
the prevailing accounting practices unable banks to dodge the issue.
The rules of the game under which banks operated changed in 1993. Norms or income
Recognition, Assets classification and loan loss provisioning were put in place and
capital adequacy ratio become mandatory. The cumulative impact of all these changes
has been on the concept of state ownership in banks. It is increasingly becoming clear
that the state ownership in bank is no longer sustainable.
The amendment of banking regulation act in 1993 saw the entry of new private sector
banks and foreign banks.
About HDFC Bank
HDFC BANK LTD 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.
If ever there was a man with a mission it was Hasmukhbhai Parekh, Founder and
Chairman-Emeritus, of HDFC Group. HDFC BANK LTD was amongst the first
to set up a bank in the private sector. The bank was incorporated on 30th August 1994
in the name of HDFC Bank Limited, with its registered office in Mumbai. It
commenced operations as a Scheduled Commercial Bank on 16th January 1995. The
bank has grown consistently and is now amongst the leading players in the industry
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 In a milestone transaction in the Indian
banking industry, Times Bank was merged with HDFC Bank Ltd., effective February
26, 2000. The shares are listed on the Bombay Stock Exchange Limited and The
National Stock Exchange of India Limited. The Bank's American Depository Shares (
ADS ) are listed on the New York Stock Exchange (NYSE) under the symbol 'HDB'
and the Bank's Global Depository Receipts (GDRs) are listed on Luxembourg Stock
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 now holds a strong deposit base of around Rs. 1,22,000 Crore and
net advances of around Rs. 89,000 crore. The balance sheet size of the combined
entity would be over Rs. 1,63,000 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.
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
1.2 Mission, Vision and Business Strategy
I. World Class Indian Bank

II. Benchmarking against international standards.

III. To build sound customer franchises across distinct businesses
IV. Best practices in terms of product offerings, technology, service levels, risk
management and audit & compliance

Vision Statement
The HDFC Bank is committed to maintain the highest level of ethical standards,
professional integrity and regulatory compliance. HDFC Banks business philosophy
is based on four core values such as:-
1. Operational excellence.
2. Customer Focus.
3. Product leadership.
4. People.
The objective of the HDFC Bank is to provide its target market customers a full range
of financial products and banking services, giving the customer a one-step window for
all his/her requirements. The HDFC Bank plus and the investment advisory services
programs have been designed keeping in mind needs of customers who seeks distinct
financial solutions, information and advice on various investment avenues.

Business Strategy
I. Increasing market share in Indias expanding banking

II. Delivering high quality customer service
III. Maintaining current
high standards for asset quality through disciplined credit
risk management
IV. Develop innovative products and services that attract targeted customers and
address inefficiencies in the Indian financial sector.
1.3 Board of Directors and Business Heads

Mrs. Shyamala Gopinath Chairperson

Mrs. Shyamala Gopinath holds a Master's Degree in Commerce and is a CAIIB.

Mrs. Gopinath has over 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.
Mrs. Gopinath is a member of the following Committees of the Board of the Bank:
Audit Committee (Chairperson)

Nomination and Remuneration Committee

Risk Policy and Monitoring Committee

Customer Service Committee (Chairperson)

Fraud Monitoring Committee (Chairperson)

Mr. Aditya Puri - Managing Director

Mr. Aditya Puri holds a Bachelor's degree in Commerce from Punjab University
and is an Associate Member of the Institute of Chartered Accountants of India.
Prior to joining the Bank, Mr. Puri was the Chief Executive Officer of Citibank,
Malaysia . Mr. Puri has been the Managing Director of the Bank since September
1994. Mr. Puri has nearly 40 years of experience in the banking sector in India and
abroad. Mr. Puri has provided outstanding leadership as the Managing Director and
has contributed significantly to enable the Bank scale phenomenal heights under his
stewardship. The numerous awards won by Mr. Puri and the Bank are a testimony
to the tremendous credibility that Mr. Puri has built for himself and the Bank over
Mr. Puri is a member of the following Committees of the Board of the Bank:
Stakeholders' Relationship Committee

Corporate Social Responsibility Committee

Risk Policy and Monitoring Committee

Credit Approval Committee

Customer Service Committee

Fraud Monitoring Committee

Premises Committee

A N Roy Director

Bobby Parikh Director

Kaizad Bharucha Executive Director

Keki Mistry Director

Malay Patel Director

Paresh Sukthankar Deputy Managing Director

Partho Datta Director

Renu Karnad Director

Sanjay Dongre Exe. Vice President (Legal) & Co. Secretary

Sanjay Dongre Secretary

Sashidhar Jagdishan Chief Financial Officer

Umesh Chandra Sarangi Additional Director

1.4 Awards
12th BML Munjal Awards 2017 Sustained Excellence in Learning &

The Financial Express Indias Best Profitability Rank1

Strength & Soundness Rank1

Asia Money India Banking Awards 2017 Best Domestic Bank- India

Business Standard Annual Awards 2016 Banker of the year Mr. Aditya puri

IBA Banking Technology Awards 2017 Best IT Risk and cyber security

Outlook Money Awards 2016 Bank of the year

Finance Asia Poll on Asias Best Best CEO Mr. Aditya Puri
Companies 2016
Best at Investors relation Rank1

Best managed company Rank2

Best at CSR Rank8

National payments excellence awards Best Bank in cheque truncation system

2016 (CTS)

Best Bank in National Automated

Clearing House (NACH)

Best Bank in National Financial Switch


Institutional Investor All-Asia Executive Mr. Aditya Puri ranked Best CEO
Team ranking 2016 -HDFC Bank ranked Best Company in
Banks sector of Asia ex-Japan

Asiamoney FX Poll 2016 -Ranked No. 1 in the Best Domestic

Provider for FX Products and Services in
-Ranked No.2 in the Best Domestic
Provider of FX Services and for FX
Research and Market Coverage
-Ranked No. 1 in the Best Local Cash
Management Bank in India

BrandZ Top 50 Most Valuable Indian HDFC Bank has been ranked India's
Brands most valuable brand for the 3rd
consecutive year
1.5 Integrated Financial Services

1.6 Business Statement

HDFC Bank offers a wide range of commercial and transactional banking

services and treasury products to wholesale and retail customers. The bank has three
key business segments:

Wholesale Banking Services:

The Bank's target market ranges from large, blue-chip manufacturing companies in
the Indian corporate to small & mid-sized corporate and agri-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 corporate including multinationals, companies from the domestic

business houses and prime public sector companies. It is recognized as a leading
provider of cash management and transactional banking solutions to corporate.

Retail Banking Services:

The objective of the Retail Bank is to provide its target market customers a full
range of financial products and banking services, giving the customer a one-stop
window for all his/her banking requirements. The products are backed by world-
class service and delivered to the customers through the growing branch network, as
well as through alternative delivery channels like ATMs, Phone Banking, Net
Banking and Mobile Banking.
The HDFC Bank Preferred program for high net worth individuals, the
HDFC Bank Plus and the Investment Advisory Services programs have been
designed keeping in mind needs of customers who seek distinct financial solutions,
information and advice on various investment avenues. The Bank also has a wide
array of retail loan products including Auto Loans, Loans against marketable
securities, Personal Loans and Loans for Two-wheelers. It is also a leading provider
of Depository Participant (DP) services for retail customers, providing customers the
facility to hold their investments in electronic form.
HDFC Bank was the first bank in India to launch an International Debit Card
in association with VISA (VISA Electron) and issues the Master card Maestro debit
card as well. The Bank launched its credit card business in late 2001. By September
30, 2005, the bank had a total card base (debit and credit cards) of 5.2 million cards.
The Bank is also one of the leading players in the "merchant acquiring" business
with over 50,000 Point-of-sale (POS) terminals for debit / credit cards acceptance at
merchant establishments.


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, corporate 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.
1.7 Objective of Study

The title of the project is Product Penetration and Digitalization. Under this I
have to do a market survey and scoping for bank products used by existing and
potential clients in the manufacturer and trader segment.
Following are the main objectives of our study
Collect details via survey of manufacturers, traders and merchants in our
catchment area.
Competition analysis- Market Share and recommendations to capture more
Analysis of working capital and its usage to banking industry.
Credit card usage pattern and recommendations for increasing its market
Lead Generation for working capital POS machines.
Create awareness about chiller and Payzapp.

1.8 Problem Definition

The following are some important terms in the project which need to be understood
before describing about the research.

Manufacturer and Trader.
The catchment area is phase 8,phase 9,phase 10 industrial area. The business may be
in sole propertiership or partnership. There are around 100+ manufacturer and traders
in combining these sectors.

Market Survey
The market survey was done for the traders through a proper conversation with them.
The aim was basically to find out who are there with the bank, who are not, what are
the main reasons of them using different banking product of either HDFC bank or any
other bank, what are their satisfaction level with the primary bank on different
parameters so that the potential clients can be targeted through the parameter with
which they dont feel satisfactory with primary bank.

The competitors analysis on various parameters was done according to the survey of
their clients. If we talk about Mohali industrial area , then its one of the oldest and
biggest industrial place of Mohali having a lots of competition in banking being the
major focus market .
1.9 Importance of Study

The study would try to throw some insights into the existing services provided by the
banks, perceptions and the actual service quality of the bank. The results of the study
would be able to recognize the lacunae in the system and thus provide key areas
where improvement is required for better performance and success ratio. In the days
of intense competition, superior service is the only differentiator left before the banks
to attract, retain and partner with the customers. Superior service quality enables a
firm to differentiate itself from its competition, gain a sustainable competitive
advantage, and enhance efficiency.
HDFC Bank products for Manufacturer and Trader

2.1 Current Accounts

HDFC Bank Current Account gives the power of inter-city banking with a single
account and access to more than cities. From special cheques that get treated at par
with local ones in any city where branch, faster collection of outstation cheques
(payable at branch locations), free account to account funds transfer between HDFC
Bank accounts to Free inter-city clearing of up to 100 lakhs per month, banks priority
services have become the benchmark for banking efficiency.
Now, with an HDFC Bank Current Account, experience the freedom of multi-city
banking. Person can have the power of multi-location access to his account from any
of our 761 branches in 327 cities. Not only that, he can do most of his banking
transactions from the comfort of his office or home without stepping out.
There are various kinds of current account in this bank like: -

Plus current account

HDFC Bank plus Current Account gives the power of inter-city banking with a single
account and access to more than cities. Plus Current Account requires maintaining an
average quarterly balance of Rs. 100,000.

Trade current account

In today's changing business requirements, you need to transfer funds across cities,
and time is of the essence. HDFC Bank Trade Current Account gives power of inter-
city banking with a single account.
From special cheques that get treated at par with local ones in any city where bank
have a branch, to free account to account funds transfer between HDFC Bank
accounts, to free inter-city clearing of up to 50 lakhs per month, banks priority
services have become the benchmark for banking efficiency. Trade Current Account
requires maintaining an average quarterly balance of Rs. 40,000.

Premium current account

Business needs a partner who can manage finances while concentrate on growing
business. Form this account customer can avail benefits of inter-city banking 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.25 Lacs per month.
A Current Account with the benefits of accessing account from a large network of
branches, and through direct access channels - the phone, mobile, Internet and through
the ATM.

Regular current account

A Current account is ideal for carrying out day-to-day business transactions. With the
HDFC Bank Regular Current Account, customer can access 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 account. Regular Current Account requires to maintain an average
quarterly balance of only Rs. 10,000.
With a vast network of branches in cities all over the country, and access to a
multitude of ATM's, customer can keep track of all transactions anytime.

Reimbursement Current Account

No more paperwork, no more receipts to keep track of - a hassle-free account that

allows deposit the reimbursements receive from company/organization on a monthly
To open this account a person has to follow these processes:
Procure an Account Opening Document (AOD) from HDFC Bank. (If person has just
joined, first request to company to open up a Salary Account for particular person).
Mention Salary Account number and Debit Card number on the AOD so that Debit
card can be linked to both, Salary Account as well as new Reimbursement Account.
Request company to directly credit cash payments to the Reimbursement Account.

RFC Domestic Account
Full name of this account is Resident foreign currency account.
Have you accumulated foreign currency from travelling abroad frequently? Received
gifts from relatives in foreign currency? Or earned it by any other means as approved
by the Reserve Bank of India?
If so, open Resident Foreign Currency Domestic Account and manage foreign
currency efficiently. Person can choose to set up your account either in US Dollar,
Great Britain Pound or Euro.
To open this accounts a person as to follow this process: -
Choose the currency in which person wish to operate. Open account with an initial
amount as per the following-US Dollar = 250 Great Britain Pound = 200 Euro = 250
and maintain an Average Quarterly Balance of the same amount.

Flexi current account

Tired of static transaction limits during peak seasons? HDFC Bank Flexi Current
Account is the answer to changing banking needs during peak seasons.
With HDFC Bank Flexi Current Account Cash Deposit and Anywhere Transaction
limits are a multiple of the balance you maintain in Current Account. So, during peak
seasons, customer get the benefit of higher transaction limits due to the higher average
balances maintained in account. Whats more, during lean seasons, person need not
worry about maintaining huge balances to enjoy high transaction limits, which person
anyway may not need. Flexi Current Account requires to maintain a minimum
Average Monthly Balance (AMB) of just Rs. 75,000.

Apex current account

The top position is always the desirable position. With the Apex current account, take
business to a new high. On maintaining an average quarterly balance of Rs. 10 lakhs,
this account makes sure person make the most of every business opportunities coming
his way. Unlimited, free, anywhere Banking experience at the APEX is reserved for
person who joints this.

Max current account

Maximum benefits and minimum hassles for customer with Max Current Account
with a Rs. 5 lakhs average quarterly balance requirement, bank present to world of
privileges that helps business expand and grow. Features like maximum free
transaction limits including other beneficial features on this current account truly
enhances business potential to the Maximum.

2.2 Limits

HDFC Bank offers a unique range of working capital facilities at door-step. It offers
affordable, convenient financial solutions which are of paramount importance in
running an efficient enterprise.
Types of Working Capital / Limit
Cash Credit / Overdraft- HDFC Bank offers Cash Credit / Overdraft
facilities to various segments of customers for their working capital
requirements. This is a fund based facility to help fund business inventory
(raw materials and finished goods) and receivables (debtors).

Letter of Credit (LC) - HDFC bank offer import financing through Letters of
Credit, which are well accepted globally and supported by a strong trade
finance set up. It is direct members of SWIFT and has correspondent banking
Bank Guarantee (BG) - Bank Guarantees are necessary for certain business
obligations. At HDFC Bank, Bank Guarantees are issued on customers behalf
under any business contract.

Packing Credit (PC)- Packing Credit is offered to exporters to help them

finance the purchase and import of raw materials, and the processing and
packing of the goods meant for export.
Post Shipment Finance
Bill Discounting
Customer Segment: SMEs including Traders,Manufacturers , Service Enterprises,
Retailers, Stockist, Distributors, Merchant Establishments,Departmental Stores,
Supermarkets, Restaurants, Multi Brand Outlets etc.

2.3 POS
In the technical world people are trying to keep as much less cash with themselves as
they can. So point-of-sales or swapping machines are a basic requirements for every

2.4 Other HDFC Bank products

Fix deposits service
Long-term investments form the chunk of everybody's future plans. An alternative to
simply applying for loans, fixed deposits allow to borrow from own funds for a
limited period, thus fulfilling needs as well as keeping savings secure.
People can invest his/her money into either in security market or gold or mutual fund
or into a fix deposits. People always go to that way where he/she can get more
benefits and minimum risks. So, for this purpose he has a better chance to deposits
money in to the fix deposit.
If people believe in long-term investments and wish to earn higher interests on his/her
savings, now is the time to invest money in HDFC bank Fixed Deposit. Get up to
9.75% on HDFC Bank Fixed Deposit with an additional 0.50% for Senior Citizens.
What's more NO PENALTY if withdraw part of the FD in times of need. Flexibility,
Security and High Returns all bundled into one offering.

Regular fix deposit
As per the rules and regulation of the bank a person can deposit their money in to a fix
deposit in the bank and can get the benefits of these facilities.

Five year tax saving fix deposit
In 2006, it was announced for the first time that Bank fixed deposits booked by an
Individual/HUF for 5 years & up to Rs. 1,00,000/- will be allowed exemption under
Sec 80C of the Income Tax Act,1961 subject to necessary declarations taken from the

Super saver facility
Customer can enjoy a high rate of interest along with the liquidity of a Savings
Account by opting for a Super Saver Facility on his or her savings account. Avail of
an overdraft facility of up to 75% of the value of his or her Fixed Deposit.

Sweep-in facility
Do you wish to avoid taking overdrafts, and still take advantage of your Fixed
Deposits? Then what you need is a Sweep-In Facility on savings account. Link Fixed
Deposit to Savings or Current Account and use it to fall back on in case of
emergencies. A deficit in Savings or Current Account is taken care of by using up an
exact value from Fixed Deposit. Since deposits are broken down in units of Re 1/-,
customer will lose interest only for the actual amount that has been withdrawn.

Demat account service
Nowadays share market is becoming is the main occupation of the person. So to
avoid faulty processes demat account is really most important for the share market
and for the safety of shares it is most important.
HDFC BANK is one of the leading Depository Participant (DP) in the country with
over 8 Lac demat accounts.
HDFC Bank Demat services offers a secure and convenient way to keep track of
securities and investments, over a period of time, without the hassle of handling
physical documents that get mutilated or lost in transit.
HDFC BANK is Depository participant both with -National Securities Depositories
Limited (NSDL) and Central Depository Services Limited (CDSL).

Safe deposit locker
A Safe Deposit Locker with HDFC Bank is the solution to persons fear. Located at
select branches in cities all over the country, banks lockers ensure the safe keeping of
An individual (not minor), firms, limited company, associations, clubs, trusts,
societies, etc may hire a locker.

Loan Services
In todays competitive world every thing happens only with the help of money or
through the money every person need money. But some time a person has not cash on
hand at that time he needs lone either from any friend or from any financial institute.
Lone dose not mean that only lower class person needs it but also upper class person it
is needed.
As per the requirement of the every person there are much type of loans are there in
the HDFC bank.

Personal loan
A person has so many dreams but some time due to scarcity of money a dream cant
be satisfy. So, here one solution for that person this is personal loan. From this he/she
can fulfill their needs or requirement. It can be any thing either a dream of vacation or
son/daughters admission to college or any wedding, so personal loan can be helpful
in this entire requirement.
As person ordered in the hotel for tea or coffee and it is immediately came fast, same
over here any person want to get a personal loan with the nominal documents he can
get the loan.

Home loan
HDFC Bank brings, HDFC home loans to doorstep. With over 30 years of
experience, a dedicated team of experts and a complete package to meet all housing
finance needs, HDFC Home Loans, help people realize dream.

Vehicles loan
Nowadays the life is being so fast, time value is becoming more important so to
reach at the destination of any business related occasion or for a boy to reach college
or any where at the fix time there are so many requirement of vehicles. But every
people have no capacity to purchase vehicles with cash so for that here in the HDFC
bank vehicles loan is available. There are many types of vehicles loan.
Types of vehicles loan:
Two wheeler loans.
New car loan.
Used car loan.
Tractor loan (for agree culture business).
Commercial vehicle loan.
So, as per the requirement of the person there are these types of loans are available
this are at the chip rate and hassel free from more documentation and other procedure.
And commercial businessman can get the benefits of the commercial vehicles loans.
Thus as per the need of different people there are vehicle loans available. And also
terms and condition are different as per the requirement.

Express loan plus

Bank offer Express Loans Plus at person Doorstep to help fulfill all his/her needs.
The procedure is simple, documentation is minimal and approval is quick. It is helpful
to person in repairing of house, School admission or also in the family holiday.

Card Services

In todays competitive and fast time card services providing by the banks are
really very important to every person and every business needs or to take meal in to
the hotel or to purchase jewellery from the jewellery shops cards are playing good role
in the banking sectors.
Bank ranges of Cards help to meet financial objectives. So whether persons are
looking to add to his buying power, conducting cashless shopping, or budgeting his
expenditure, he will find a card that suits him.

Credit cards
A person wants many things like, a trip to Bali, a diamond ring for wife's dreams.
Some dreams can't wait. If there's something person has always wanted. If a person
wanted fulfill his wants he can get benefits from the HDFC banks credit cards
facilities. different types of credit
Classic cards
Silver Credit Card.
Value plus Credit Card.
Health Plus Credit Card.
Premium Cards:
Gold Credit Card
Titanium Credit Card
Woman's Gold Card
Platinum Plus Credit Card
Visa Signature Credit Card
World MasterCard
Commercial Cards
Corporate Credit Card

Debit card
HDFC Bank Debit Cards give person complete and instant access to the money in his
accounts without the risk or hassle of carrying cash.
Types of debit card: -
Classic card
Easy shop international Debit card.
Premium card
Easy shop gold Debit card.
Specialized card
Easy Shop International Business Debit Card
Easy Shop Woman's Advantage Debit Card
Easy Shop NRO Debit Card
Kisan Card

Prepaid card
Besides offering convenience, Prepaid Cards have been tailored to answer travel and
gifting needs.
ForexPlus Cards
Prepaid Travel Card.
Gift Plus Cards
Prepaid Gift Card
Food Plus Cards
Prepaid Food Plus card.
Money Plus Card
The Corporate Payment card

Payment Services

Nowadays life of a person become very stressful and he/she becoming busy with their
own business, but they have to payment for something so for that reason banks
payment services become started. With HDFC Bank's payment services, person can
bid goodbye to queues and paper work. Banks range of payment options make it easy
for pay for a variety of utilities and services.

Verified By Visa
Do you want to be worry free for your online purchases. Now you can shop securely
online with your existing Visa Debit/Credit card.

Net Safe
Now shop online without revealing your HDFC Bank Credit Card number. What
more, you can now use your HDFC Bank Debit Card also for online purchases.

Merchant Services
Accept all Visa, MasterCard, credit and Debit cards at your outlets through state of the
art POS Machines or through your website and experience hassle free payment

Prepaid Mobile Refill

If you are an HDFC Bank Account holder, you can now recharge your Prepaid Mobile
Phone with this service.
Review of Literature

Analysis of customer behaviour is an essential input in planning marketing strategies.

Consumer behaviour guides in market segmentation, one of the important tools in bank
marketing. The behavioural aspects of a bank customer are given less importance in the
financial analysis of bank products. It cannot be ignored that it is the customer who
creates the demand for products and any change in these needs would affect the demand
also. Customers have different preferences and a purchase decision is effected after
considering the range of services offered by the banks. These variations may be related
to the psychological differences among individuals on aspects such as attitude, motives,
social class needs, culture, etc. This can be studied only with the help of market research
studies on customer behaviour and their preference patterns.
Customer behaviour is influenced by three sets of factors, viz., external factors, internal
factors, and the consumer process. Culture, occupation, social class and geographic
location are factors which externally influence customers. Culture is a mix of beliefs,
attitudes, and ways of doing things by reasonably homogenous set of people. 23 Culture
explains how and why people behave as they do and also transcends to their buying
behaviour. Education, upbringing, religious beliefs, and living conditions are the factors
that would shape up the culture of a person. Origin of private banks in India can be
largely attributed to the needs of specific cultural or communal groups. Even now some
banks survive only on this aspect of customer behaviour, though, of late they have
realised the need expanding outwardly. breaking the boundaries of their small segments.
In the United Kingdom, not less than several hundred small bank branches exist. just to
cater to the needs of various ethnic groups. This aspect serves as a key factor in the
overseas market development of Banks.
A key segmenting dimension in banking is the social class to which a customer belongs.
It influences the usage pattern and attitude to the lending instruments and deposits.
People having higher education and socio-economic status have more favorable attitude
towards credit products than others. They tend to use products like credit cards more
frequently. ' Attitude to saving also shows variations across different social classes.
People belonging to lower strata of the society tend to perceive savings accounts or bank
deposits as a tangible security shield. This may be due to the fact that education equips
people to evaluate the options and thus optimise their purchase decisions. However.
sometimes-behavioural characteristics might overshadow such influences.
Customer Satisfaction

Customer satisfaction is increasingly becoming a corporate goal as more and more

companies strive for quality in their product and services"(Bitner and Hubbert, 1994,
p.78). There is an intense competition in the market to capture the customers. Therefore
the global leaders cannot think competing in the market, only with the price factor alone.
They realised that the customer satisfaction is the most important factor to become the
business leader. The ability of the firm to remain in the business is necessary to win
customers over competition since the customer is the foundation of the business. For
example "The retailer Tesco focusing on the customer, managed itself to increase its
market share and profitability by becoming the market leader in the highly competitive
and cost-conscious market place"(Cook, 2002, p. 4). Today the customers were more
educated and well informed. They will not be diverted from their expectation. They have
wide range of option to choose the product and services. To achieve the complete
satisfaction from product and services the customer makes active comparison between
different product and services. The customer's expectation rises gradually when they
begin to use a better services. Therefore the organisation have challenges to maintain the
high level of customer satisfaction always. The competitive market force the firm to
raise their customer satisfaction always.
Customer satisfaction is the measure of how the needs and responses are collaborated
and delivered to excel customer expectation. It can only be attained if the customer has
an overall good relationship with the supplier. In todays competitive business
marketplace, customer satisfaction is an important performance exponent and basic
differentiator of business strategies. Hence, the more is customer satisfaction; more is the
business and the bonding with customer. Customer satisfaction is a part of customers
experience that exposes a suppliers behavior on customers expectation. It also depends
on how efficiently it is managed and how promptly services are provided. This
satisfaction could be related to various business aspects like marketing, product
manufacturing, engineering, quality of products and services, responses customers
problems and queries, completion of project, post delivery services, complaint
management etc. Customer satisfaction is the overall essence of the impression about the
supplier by the customers. This impression which a customer makes regarding supplier is
the sum total of all the process he goes through, right from communicating supplier
before doing any marketing to post delivery options and services and managing queries
or complaints post delivery. During this process the customer comes across working
environment of various departments and the type of strategies involved in the
organization. This helps the customer to make strong opinion about the supplier which
finally results in satisfaction or dissatisfaction. Customers perception on supplier helps
the customer choose among the supplier on basis of money value and how well the
delivered products suit all the requirements. The suppliers services never diminishes
after the delivery as customer seeks high values post marketing services which could
help them use and customize the delivered product more efficiently. If he is satisfied
with the post marketing services then there are good chances for supplier to retain the
customers to enhance repeated purchases and make good business profits.
In the current banking scenario it is obvious that banks gain competitive advantage by
rendering efficient service and thereby enhancing customer relationship. More emphasis
on creating loyal customers is the need of the hour. It is pivotal for all players in the
financial service industry to understand the needs of the customer and customize services
based on their needs. This in turn will pave way for achieving customer satisfaction to a
larger extent. The measurement of the same is an important factor in banking sector.
In this ICT (Information, Communication and Technology) era, the mode of direct pay,
online financial services has gained value. Now a day, customers need flexible hours of
operation, customization and transparency. Due to increased market competition,
customers defection rates are higher. Thus, research on service quality and satisfaction
of customers in banking sector is considered important.
In this research paper, the researchers have focused on service quality and customer
satisfaction literature that has been receiving significant attention over the last few years.
This research paper is classified in two fold namely Quality of Service and satisfaction
of customers in banks across various countries.

Consumer Perception
Different social classes exist and target marketing would enable banks to tap the
potential in such segments Income need not be the most determinant factor in
segmentation. Psychological differences largely remain unexplored in the Indian
markets. In the financial products marketing, the opinion of reference groups has
considerable influence on customer's choices. A customer is more

likely to share the attitude of his or her reference group. If information obtained by a
customer contradicts with what the reference groups believes in, the customer will also
develop unfavourable attitude towards the product. Marketing people can identify
suitable reference groups to build up favourable image and opinion. This is especially
true in marketing to retail segments which often look for reliable sources of information.
The over dependence of customers on image in the services industry can be best
explained by the problem of credibility of information sources and the intangible nature
of the service. In the case of banks, studies have shown that customer choice is largely
decided by the opinion of peers, parents and relatives.

Family plays an important role in the choice of a bank. Youngsters tend to choose the
banks of their parents. Martineau (1958) conducted a study among students opening
account for the first time in their life and found
that parental influence ranked second to
'location_ of banks in their choice of bank.
Product needs also vary across different life cycle stages of a family Rajashekar and
Paul(1999) have found the relative importance of the choice criteria across life cycle
segments. 3 Individuals in the bachelor stage (young.
single people not living at

home) emphasise the importance of such criteria as

'nearness to home. overall quality of service.

Reputation. ease of qualifying for free checking accounts by maintaining a

minimum balance, and fast service and being able to obtain all financial services at
one location For newly married couples (with children under 6 yearstermed as full
nest I), attributes such as 'location', reputation, availability of mortgage loans, low
interest rates on loans and good financial advices were found to be the important
choice criteria. For older couples, 'location', good financial advice, experienced
personnel, safety of funds, paying highest rates on savings and overall quality of
services were important. The study revealed interesting attitudinal pattern among
members of different life cycle stages. Those in the bachelor stage are ambitious as
their goal is to double their money in the future and they appear to be less loyal to
their financial institutions as it makes no difference to them whether they deal with a
local bank or a new bank. Meanwhile, members of full nest I and II stages have great
desire to provide money needed by their children to go to college, invest in a safe
avenue with steady returns and offering convenience and are bargain oriented. Older
members are more value oriented than empty nest 1 counter parts. The findings
clearly suggest that bankers have opportunity in targeting the different groups with
suitable market
mix variables particularly with respect to product, pricing and location
Psychological Influences- Aspects such as motivations. perceptions. attitudes and
beliefs are the psychological influences. Influences of these factors may not be

obviously pronounced in the case of choice behaviours. But it may
influence the customer satisfaction deregulation and service quality expectations of
specific customer segments.

The Consume. Frocess and Loyalty- Consumer purchase decisions are made
haphazardly, though certain dominant features might influence the choice of financial
institutions in general. Choice of specific financial products may involve a decision
making process consisting of different phases such as getting aware of the need,
searching for alternatives, evaluation of the options, choice of a product and post-
purchas evaluation. At each stage, their information needs may also change.
Understanding the information needs of customers at these different phases is hence
essential for planning marketing communications. However. it has been observed that
customers do not often seek the finer details of schemes and services through the
advertisements. Most ofthe information required is passed over the counter by bank
personnel. Counter staff should have good product knowledge and communication
skills to take up this responsibility. The post purchase phase is also crucial in the sense
that a bank staff should be able to provide assurance to the customers about the
benefits and reinforce their purchase decision so as to ensure loyalty of the customer.

Banks in India generally enjoy good patronage by customers. Despite the introduction
of many new schemes, bank deposit still reign superiority in the household savings.
This clearly illustrates popularity of banks among common people. Interestingly,
products like National Savings Certif1cates(NSC), Unit Trust of India schemes(UTI),
etc, though carry higher returns, have not been as popular as bank deposits. Some
banks are pat.-cnised by customers irrespective of the service quality levels they
maintain. These are a few aspects that makes one to probe into the reasons of
customer loyalty in banking industry. From the perspective of bankers ensuring
customer loyalty is important for the following reasons.

Customer turnover is costly to banks as processing is time consuming and labour

intensive, which, in turn, affects their profitability too.

Existing customers may help in cross selling a bank's products and in doing word-of-
mouth advertising to potential customers. Fry (1973) conducted a study among
university graduates to identify banks patronised by them at specified periods before.

during. And after their time at the university. Also questions pertaining to
Respondents location, loan status, parents socio-economic classification, etc. were
included. The study made some important conclusions such as
If a person is non-mobile (stays in one place) the branch coverage has effect on
Prior patronage increases the likelihood of loyalty in future.
Students tend to patronise the same bank as their parents.
Conceptual Model

IDV: Consumer Perception.

DV: Customer Satisfaction.


Interest Customer
Rates Interest


Forex WC
Services Provisions
Research Methodology

4.1 Research Design

As the study is for markets survey of products of HDFC Bank so our research design is
exploratory. In this we are having some knowledge about the manufacturer & traders as
they use current a/c, POS, limits etc. But there are still lack of satisfaction regarding
various factors, so this study is going to find out what are they and how can be they

4.2 Sample Size

The catchment area is phase ,8 phase 9 phase 10 industrial area. The business may be in
sole propertiership or partnership. There are around 100+ manufacturer and traders in
combining these sectors, but due to various constraints the sample size got limited to 97

4.3 Sampling technique

There was a predetermined sample of phase 8, phase 9, phase 10 industrial area. So

basically I covered the whole market of these two sectors, but the sample got to be only
97 due to unavailability of information.

4.4 Data Collection

There was a proper structured interview method based on a questionnaire (in annexure)
by visiting shop-to-shop. The questionnaire was prepared by mentors help and with
some references, done earlier. So all the data collected is primary data. These
information was provided either by traders themselves or by the one who manage shops
account and financial activities.

4.5 Data Analysis

The data analysis has been done in basically two steps.

Descriptive Analysis- In this basically the raw data has been analysed which was
obtained based on questionnaires. It simply hives some graphs. Tables and
diagrams and there simple interpretation.
Hypothesis of the Study:
H1: Consumer Perception has a significant impact on customer Satisfaction.

H2: Product and Services has a significant relationship with customer satisfaction.

H3: Customer Interest has a significant relationship with the customer satisfaction.

H4: Working Capital Provision has a significant relationship with the customers

H5: Forex Services has a significant relationship with the customer satisfaction.

H6: Interest Rates has a significant relationship with the customer satisfaction.
Data Analysis:
The following Data analysis is performed on the basis of the data filled in the
questionnaires. There are various tools of data analysis that helps the researcher to
interpret data into final results. Various tools have been used to analyse the data and for
the testing of Hypothesis.

Checking the Normality of the data collected:

Normality test was applied.

Tests of Normality
Kolmogorov-Smirnov Shapiro-Wilk

Statistic df Sig. Statistic df Sig.

CUSTOMER SATISFACTION .360 97 .401 .770 97 .797

a. Lilliefors Significance Correction

Tests of Normality
Kolmogorov-Smirnov Shapiro-Wilk

Statistic Df Sig. Statistic df Sig.

CONSUMERPERCEP .213 97 .365 .826 97 .752


a. Lilliefors Significance Correction

Mean values of collected responses for each section was calculated and used for applying
normality test.

Since the sample size < 2000, Shapiro-Wilk test has been used for ascertaining the
normality of the data at hand.

Thus the p-values are well above 0.05; therefore the data under consideration is normal.
Thus, parametric tests shall be used for analysis.

Testing the reliability of questionnaires

Reliability Statistics

Cronbach's Alpha N of Items The scales are 77.8% reliable according to Cronbachs
alpha and it means that there is .778 probability that
.778 5
we are going to measure customer satisfaction

CONSUMER Pearson Correlation 1 .782**
PERCEPTION Sig. (2-tailed) .000
N 97 97
CUSTOMER Pearson Correlation .782** 1
Sig. (2-tailed) .000
N 97 97
**. Correlation is significant at the 0.01 level (2-tailed).

H1: Consumer Perception has a significant impact on customer Satisfaction.

From table, The p value is .000 which is less than .05 this means that the correlation is

Correlation coefficient is 0.782 which means that there is a highly positive degree of
correlation between Service Quality and Customer Satisfaction.

Thus, the hypothesis is accepted.


PS Pearson Correlation 1 .632**
Sig. (2-tailed) .000
N 97 97
CUSTOMER Pearson Correlation .632** 1
Sig. (2-tailed) .000
N 97 97
H2: Product and Services has a significant impact on customer Satisfaction.

From table, The p value is .000 which is less than .05 this means that the correlation is

Correlation coefficient is 0.632 which means that there is a highly positive degree of
correlation between Service Quality and Customer Satisfaction.

Thus, the hypothesis is accepted.

CI Pearson Correlation 1 .805**
Sig. (2-tailed) .000
N 97 97
CUSTOMER Pearson Correlation .805** 1
Sig. (2-tailed) .000
N 97 97
**. Correlation is significant at the 0.01 level (2-tailed).

H3: Customer Interest has a significant impact on customer Satisfaction.

From table, The p value is .000 which is less than .05 this means that the correlation is

Correlation coefficient is 0.805 which means that there is a highly positive degree of
correlation between Service Quality and Customer Satisfaction.

Thus, the hypothesis is accepted.


WC Pearson Correlation 1 .625**
Sig. (2-tailed) .000
N 97 97
CUSTOMER Pearson Correlation .625** 1
Sig. (2-tailed) .000
N 97 97
**. Correlation is significant at the 0.01 level (2-tailed).
H4: Working Capital Provisions has a significant impact on customer Satisfaction.

From table, The p value is .000 which is less than .05 this means that the correlation is

Correlation coefficient is 0.625 which means that there is a highly positive degree of
correlation between Service Quality and Customer Satisfaction.

Thus, the hypothesis is accepted.

FS Pearson Correlation 1 .683**
Sig. (2-tailed) .000
N 97 97
CUSTOMER Pearson Correlation .683** 1
Sig. (2-tailed) .000
N 97 97
**. Correlation is significant at the 0.01 level (2-tailed).

H5: Forex Services has a significant impact on customer Satisfaction.

From table, The p value is .000 which is less than .05 this means that the correlation is

Correlation coefficient is 0.683 which means that there is a highly positive degree of
correlation between Service Quality and Customer Satisfaction.

Thus, the hypothesis is accepted.

IR Pearson Correlation 1 .697**
Sig. (2-tailed) .000
N 97 97
CUSTOMER Pearson Correlation .797** 1
SATISFACTION Sig. (2-tailed) .000
N 97 97
**. Correlation is significant at the 0.01 level (2-tailed).

H6: Interest Rates has a significant impact on customer Satisfaction.

From table, The p value is .000 which is less than .05 this means that the correlation is

Correlation coefficient is 0.697 which means that there is a highly positive degree of
correlation between Service Quality and Customer Satisfaction.

Thus, the hypothesis is accepted.

Statistical Analysis
Top of Mind


Manufacturers HDFC

Traders Induslnd

Since it can be observed that the bank with highest recall values are ICICI, HDFC, SBI.
HDFC stood second on the Top of the mind test. Top of the mind tests signify the recall
value of a brand. Mainly means what does comes to a consumers mind when they heard of
the word bank.

In the manufacturer segment HDFC stood on the third position, which means HDFC is not
that prevalent in the areas surveyed.

In the traders segment HDFC stood on the first position. It means among traders HDFC is
the most recalled brand i.e it is quite popular with the traders associated in the survey.
Market Share

Primary Bank


37 Axis
100 11

Vijay Bank
4 Central Bank

Out of the Data Collected from 97 respondents we found that 37 of them were having
HDFC Bank as their PRIMARY BANK. More than 50% of the market share was captured
by HDFC, Canara & ICICI Bank

Family Accounts

Family Accounts

NO, 11, 30%

YES, 26, 70%

Out of the Manufacturers and traders with HDFC as Primary Bank, Approximatley 70
percent of them have bank accounts with HDFC. This thus proves HDFC bank has good
Credibility with its existing customers.
Factors for choosing Primary Bank


9% 1
14% 3
19% 6

24 Percent of the sample selected location as the most important factor while choosing a
bank. 29 of the sample picked location as second most important. Thus it can be concluded
that location is a important factor while choosing bank. So easy accessibility of branches
will help in increasing customers.

Good Customer Service


10% 1
30% 2

30 Percent of the sample selected location as the most important factor while choosing a
bank. 28 of the sample picked location as second most important. Thus it can be concluded
that good customer service is a important factor while choosing bank.
Reputation and Corporate Image


24% 21% 2
23% 22%

23 percent of people have choosen Reputation and corporate Image as their first factor for
choosing primary bank.

Products Offered

17% 15% 1
11% 3
21% 6

15 percent of people have choosen Reputation and corporate Image as their first factor for
choosing primary bank.

Lack of Information regarding other



11% 16% 2
26% 22% 4
16 percent of people have choosen Reputation and corporate Image as their first factor for
choosing primary bank.

Interest Rate

41% 8%
33% 6

9 percent of people have chosen Interest Rate as their first factor for choosing primary
Awareness about Payzapp/Chillr

Payzapp and Chillr




Only 22 percent of the sample is aware about Payzapp and chillr

Awareness about Smart Hub

Smart Hub




Only 12 percent of sample is aware about Smart Hub

Factors for Switching Bank

Factors for switching Bank

22% 8% 2
11% 4
19% 6
17% 8

1: Minimum Balance Requirement

2: Customer Service Level

3: Customized Banking Services

4: Interest Rates on Savings and Fixed Deposits

5: Mobile and Internet Platforms

6: Minimum Service Charges

7: Interest rates on Loans

8: Perks for new clients and long term clients

As seen from the above Pie Chart it is observed that 22 percent of the customers has opted
for perks for new clients and long term clients as the most important factor for switching
to a new bank.
Customer Perception has a positive correlation with Customer Satisfaction, thus
bank should use marketing techniques to promote a good image in the eyes of the
customer this will increase the customer satisfaction, thus helping to increase
market share.

Customer Interest has a positive correlation with Customer Satisfaction, thus bank
should use marketing techniques to promote a good image in the eyes of the
customer this will increase the customer satisfaction, thus helping to increase
market share.

The Top of Mind recall in the manufacturing is too low i.e. 3 position. So HDFC
Bank should target to the manufacturing sector to increase awareness and increase
it market share among this segment.

In the banking information, first section was for primary bank. Here around 25%
of the sample is having primary bank as HDFC Bank, which is a very less in
competitive terms, as here HDFC has one of the oldest branch. Still there are
various factors due to which traders are banking with most of the public sector

banks. All the traders were having current a/c with their primary banks, but still
very less are having limits from there bank, either it be HDFC or any other bank.
When asked about the reason for having a particular bank, people who are having
public sector bank they said either he knows someone in banks or the trust level is
very high with them but none of them said that I am getting very good service so
that I am with a particular public sector bank. So still there is the trust lack among
peoples regarding HDFC Bank, which is a major reason for lacking behind to
grab the market share.
Managerial Implications

The trust level among traders for private sector bank is very less. So HDFC
Bank should be the first in private sector to have some day-to-day meets with
traders. They should be provided with some constructive thinkingfor their
business regarding banking and provide them relevant information.

Cost is the one factor which is reason for considering public sector banks, for
solving these traders should be informed what the services extra to public
sector bank HDFC Bank is providing if it is having a higher cost. The traders
should be informed about all type of charges and then the services provided in
response to that charge.

The money deduction without informing is a major problem causing
dissatisfaction with any bank. HDFC should try to use technology in that term
and they should have a proper receipt system if any charge for any service is
cut and instant message should be delivered to traders phone with e-reciepts.

Multiple banking can be also taken as a challange. Traders should be informed
personally about paying more charges by having multiple banking by

personalized ways, so they can get attracted towards banks relationship easily.

Limit is the one product which is still undiscovered in market by major banks.
EMI options, working capital etc. are also about people dont have information.
There can be a day in bank in which all the sales officers should be available
just for giving consultation for free especially for traders. It can be named as
financial health consultation camp. It should can be organised in middle of a

There is need of standardization in providing services and in dealing with
customers. There should be a proper protocol while dealing with a specific set
of customer.
1. 'SERVQUAL: A Multiple-Items Scale For Measuring Consumer Perceptions Of
Service Quality, Journal of kcrailing, o.64 (Spring 1988).

2. Ramesha, K., 'Banking Expectations and Bank Selection, IBA Bulletin, Vol.21, No. 9, 1999.

3. Roy, Ghosh D., Customer Knowledge Management: Branch Level Significance, Vinimaya, Vol. II, No.

4. Rust, R.T. and A.J.Zahorik, Customer Satisfaction, Customer Retention and

Market Share, Journal of Retailing, Vol.69, 1993.

5. Rust R.T., A.J.Zahorik, and T.L Keiningham, Return on Quality: Measuring the Financial Impact of your
Companys Quest for Quality, Probus, Chicago,

6. Mattila, Anna S., The role of culture in the Service Evaluation Process, Journal of Service Research, Vol. 1,
No 3, pp. 50-61, 1999.

7. Morgan R.M and S.D Hunt, The Commitment-Trust Theory of Relationship Marketing, Journal of
Marketing, Vol.58, 1994.

8. Nagadevara, \/.,and S. Jagadeesh, Total Branch Automation Customer

Perceptions, IBA Bulletin, Special issue, March 1997.

9. Nicholls, J. A. F., S. Roslow, J. Tsolikis, Time is Central, International Journal ofBank Marketing, Vol.11,

10. Lepak. Greg M., ' Bayesian approach for analysing the services of banking institutions, The Journal of
Consumer Affairs: Vol 32., No.1, Summer 1998

Questionnaire HNW Scoping and Market Survey

Name any three banks

1. ________________ 2. ________________ 3. ________________

Which is your primary bank and how long have you been associated with this bank?


What factors made you choose your primary bank? (Rank according to your preference)

Location near to home/office [ ]

Better interest rates [ ]
Reputation and Corporate image [ ]
Good Customer Service [ ]
Lack of information regarding alternate Banks [ ]
Products offered by the bank. [ ]

Does your family have accounts with the same bank? YES / NO

What products/services are you availing from the Bank?

1 2 3 4 5
Credit Card POS/Merchant Working Capital RTFX Online Banking
Swipe Machine Limits (FOREX) Services (ENET)

6 7 8 9 10
Net Banking Doorstep Cheque Salary Accounts Mobile Banking Digital Wallets

Any Other Asset, Please Specify____________________.

Youre Current Account Limit

S.NO Amount Bank Rate of Interest

Any On-going/Existing Loans

With HDFC bank With Other banks

Any other requirement? ROI Service/Product

How frequently do you use these Products/Services?

1. 3 4 times a week 2. Weekly Basis 3. 2 3 times a month 4. Once a month 5. Never.

How satisfied are you from these products and services?

1. Very Satisfied 2. Satisfied 3. Neutral 4. Dissatisfied 5. Very Dissatisfied

Perception about HDFC Bank

I consider HDFC banks overall services and products to be excellent.

1 Strongly Disagree 2- Disagree 3- Neutral 4- Agree 5- Strongly Agree

HDFC bank puts the customers interest first

1 Strongly Disagree 2- Disagree 3- Neutral 4- Agree 5- Strongly Agree

Working Capital provisions provided by HDFC bank is satisfactory

1 Strongly Disagree 2- Disagree 3- Neutral 4- Agree 5- Strongly Agree

FOREX products and services provided by HDFC bank is satisfactory.

1 Strongly Disagree 2- Disagree 3- Neutral 4- Agree 5- Strongly Agree

Interest Rates on FDs and CASA offered by HDFC are competitive as compared to other banks.

1 Strongly Disagree 2- Disagree 3- Neutral 4- Agree 5- Strongly Agree

Are you aware of digital wallets like PayZapp or Chillr? YES/NO

Are you aware of Smart Hub? YES/NO

What are the most important factors you are going to consider if you are to switch your bank? Pick any four.

Minimum Balance requirements Customer Service Level Customized Banking services

Interest Rates on Savings and Fixed Mobile and Internet Platforms Minimum Service charges
Deposits /Recurring Deposits provided by banks

Interest rates on Loans Perks for New clients and Long

time clients





Annual Income Below 5 Lacs 5 8 Lacs 8 12 Lacs 12 15 Lacs above 15 Lacs

Contact Number-