report on customer satisfaction level in hdfc bank

1. ABSTRACT
Banking in India has changed with time, it has seen a revolution and it has been growing. India
has experienced tremendous reform in financial and banking sector. The jump of economy from
the manufacturer industry, which used to be the most revenue generating industry, to the
service industry has seen the makeover of the banking sector. The banking sector is one of the
largest service providing sectors in India.
These services are of utmost importance to the customers as it takes care of their financial
needs, in fact even maintain them. HDFC bank was among the few private banks to have
started their operations in 1994 after the government of India allowed new private banks to
emerge in Indian banking sector. Housing development and Finance Corporation of India has
been credited with being one of the best financial bank in India with the track record of giving
the best financial advice to its customers and offering the best products and services in banking
area.
Due to its impeccable service offered to the customer as per their demand and convenience,
HDFC bank has become one of the leading banks in India offering customer service. In fact
customers credit it for being one of the finest in customer service leading to easy and
convenient banking. With its experience in the financial markets, a strong market reputation,
large shareholder base and unique consumer franchise, HDFC has positioned itself as being
the bank that cares for the customers.
HDFC Bank provides a variety of wholesale, retail, and depository financial services through
more than 1,400 branches and some 3,000 ATMs throughout India. Established by the Housing
Development Finance Corporation in 1994, the bank offers deposit accounts, loans, credit
cards, insurance, investments, and related services. HDFC Bank targets individual customers in
the middle and upper-class, as well as trusts, small businesses.
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2. INTRODUCTION:
HDFC bank is a commercial bank of India, promoted by the housing development finance
corporation, a premier housing finance company of India. The company headquarters are
situated in Mumbai and has around all the branches in 528 cities which are all linked on an
online real- time basis. HDFC bank is a type of public company and was founded by Mr. Deepak
Parekh.
The bank has approximately total assets of INR 1006.82 billion. For the fiscal year 2008-09, the
bank has reported net profit of Rs.2, 244.9 crore, up 41% from the previous fiscal. Total annual
earnings of the bank increased by 58% reaching at Rs.19, 622.8 crore in 2008-09. In a
milestone transaction in the Indian banking industry, Times Bank Limited (promoted by Bennett,
Coleman & Co. / Times Group) was merged with HDFC Bank Ltd., in 2000. This was the first
merger of two private banks in India. 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.
In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total branches to more than
1,000. The amalgamated bank emerged with 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 is 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. The mergers can be termed as a quest for growth in the Indian banking
environment.
Customer Service Committee:
Committee monitors the quality of services rendered to the customers and also ensures
implementation of directives received from RBI in this regard. The terms of reference of the
Committee are to formulate comprehensive deposit policy incorporating the issues arising out of
death of a depositor for operations of his account, the product approval process, and the annual
survey of depositor satisfaction and the triennial audit of such services. The Committee met 4
(four) times during the year.
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3. Progress:
The Bank’s staffing needs continued to increase during the year particularly in the retail banking
businesses in line with the business growth. Total number of employees increased from
14878 as of March31, 2006 to 21477 as of March 31, 2007. The Bank continues to focus on
training its employees on a continuing basis, both on the job and through training programs
conducted by internal and external faculty. The Bank has consistently believed that broader
employee ownership of its shares has a positive impact on its performance and employee
motivation. The Bank’s employee stock option scheme so far covers around 9000 employees.
HDFC Bank has demonstrated very consistent delivery of performance over the last so many
years and has already notched up its place as the one of the largest private sector bank in the
country and the growth momentum is expected to continue. The bank has stepped up to retail
customer acquisition with deposit accounts increasing from 6.2 million to 8.7 million and total
cards issued (debit and credit cards) increasing from 7 million to 9.2 million (approx). Not only
the retail banking of HDFC is blooming day by day but its services offered in wholesale banking
has also given tremendous growth to the bank. The online banking system i.e. net banking has
been an eye attraction for the customers as it gives them fast and convenient banking. As
already mentioned about its growing distribution network the bank is continually planning for
expansion of the branches of the bank. Customers are efficiently serviced through telephone
banking also. The Bank's expansion plans take into account the need to have a presence in all
major industrial and commercial centers where its corporate customers are located as well as
the need to build a strong retail customer base for both deposits and loan products. Being a
clearing/settlement bank to various leading stock exchanges, the Bank has branches in the
centers where the NSE/BSE has a strong and active member base. With the excellent
distribution network HDFC aspires to have as strong position in the market and with the
customers.
HDFC bank has always aspired to become a world class bank and has been trying to adopt an
efficient and effective approach to understand the ever changing customer demands and to
offer them superior service. HDFC thus has been marketing itself with the tagline saying “we
understand your world”.
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4. Business strategy:
HDFC BANK mission is to be “a World Class Indian Bank. The objective is to build sound
customer franchises across distinct businesses so as to be a preferred provider of banking
services for target retail and wholesale customer segments, and to achieve a healthy growth in
profitability, consistent with the Bank's risk appetite. Continue to develop new product and
technology is the main business strategy of the bank. Maintain good relation with the customers
is the main and prime objective of the bank. Increase market share in India’s expanding
banking and financial services industry by following a disciplined growth strategy
focusing on quality and not on quantity and delivering high quality customer service.
a) HDFC bank is a leader among Indian banks in the use of technology
Since the bank’s inception, it has made substantial investments in technology platform and
systems. Bank has built multiple distribution channels, including an electronically linked branch
network, automated telephone banking, Internet banking and banking by mobile phone, to offer
customers convenient access to our products. Technology platform has driven the development
of innovative products and reduced operating costs.
b) HDFC bank delivers high quality service with superior execution
Bank tries to deliver efficient service with rapid response time. Bank’s focus on personalized
service tries to draws customers to the products and increases existing customer loyalty.
c) HDFC offer a wide range of products
Whether in retail or wholesale banking, the bank tries to be a “one-stop shop” for the
Customers’ banking needs. The wide range of products creates multiple cross-selling
opportunities for bank and improves customer retention rates.
d) HDFC claims to have an experienced management team
According to HDFC, many of the members of senior management team who have been with the
bank; since inception seem to have substantial experience in multinational banking.
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5. The HDFC bank provides the following benefits to its customer:
1. It is the first approach to add and mix the customers religious beliefs and cultural
values with other quality dimensions.
2. It links with customer’s satisfaction and service counter.
3. It provides the customer those types of services which they want.
4. The banks send various information which may be helpful for its customer.
Statement of the problem:
The study aims to examine the satisfaction level of customer in HDFC bank.
PURPOSE OF STUDY:
What types of services are there which affects the customer satisfaction?
To determine factors that influences services on the basis of customer needs?
Does the service is responsible for change in behaviour of the customer’s?
ASSUMPTIONS OF THE STUDY:
It is assumed that all customers may honestly complete the questionnaires. To explain
customer satisfaction better, it may be important to look at additional factors or seek
better measures of the constructs. Today’s time banking industry is in a boom period.
There are various banks available to them so people can change their mind to shift
them to some other bank who will give them more benefits and good service. Service
affects a lot to these banking sectors.
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6. Literature review:
The fundamental aim of studying the customer satisfaction towards services offered by HDFC
bank is like, to know what a customer feels about the services offered by the bank ?The main motive
behind this is to measure the satisfaction level of the customers i.e. how much a customer is
satisfied? Previous studies have identified the benefits that customer retention delivers to an
organization.
For example, the longer a customer stays with a bank the more utility the customer generates. This is an
outcome of a number of factors relating to the time the customer spends with the
organization. These include the higher initial costs of introducing and attracting a new customer,
increases in both the value and number of purchases, the customer's better understanding of the
organization, and positive word-of mouth promotion.
A part from the benefits that the longevity of customers brings, research findings also suggest that the
costs of customer retention activities are less than the costs of acquiring new customers. The
financial implications of attracting new customers may be five times as costly as keeping existing
customers.
However, maintaining high levels of satisfaction will not, by itself, ensure customer loyalty. Banks
lose satisfied customers who have moved, retired, or no longer need certain services. As a consequence,
retaining customers becomes a priority. Previous research shows, however, that longevity does
not automatically leads to profitability.
References for literature review:
www.canberra.edu
faculty.mwsu.edu
www.cssp.org
www.studymode.com
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7. Branches of HDFC bank in pune :
Branch
Bank Branch Address Contact
Code
HDFC PUNE - AUNDH 000052 93, Rajyog Creations, Anand Tel: 020-25893528, Fax: 020-25885592
Bank Park, Off ITI Road, Aundh, Pune
- 411007, Maharashtra
City: PUNE
District: PUNE
State: MAHARASHTRA
HDFC PUNE - 000103 1182 / 13, Bu Bhandari Tel: 020 4120 0977, Fax: 020-25539080
Bank FERGUSSON Showroom, , Opposite Hotel
COLLEGE LalitMahal, , F C Road, Pune -
ROAD 411005, Maharashtra
City: PUNE
District: PUNE
State: MAHARASHTRA
HDFC PUNE - 000223 CaspBhavan, , 132 / 2 - Plot No. Tel: 020-25862356, Fax: 020-25862354
Bank PASHAN 3, , Pashan - Baner Link Road,
Pune - 411021, Maharashtra
City: PUNE
District: PUNE
State: MAHARASHTRA
HDFC PIMPRI - PUNE 000437 Kamala Crossroads, Unit Nos. 1 Tel: 020-46706601,
Bank To 4 & 26 To 29, Wing - A, , 46706603/46706604/46706605/46706606/46
FinolexChowk, Opposite Pcmc 706607/46706608, Fax: 020-46706602
Office, Pimpri, Mumbai - Pune
Road, Pune - 411018,
Maharashtra
City: PUNE
District: PUNE
State: MAHARASHTRA
HDFC PUNE - KIRKEE 000447 Shop No 1 - 4, Royal Residency, Tel: 020 25690754, Fax: 020 25690755
Bank (KHADKI) 48 Aundh Road, Next To Ganesh
Temple, Khadki, Pune - 411020,
Maharashtra
City: PUNE
District: PUNE
State: MAHARASHTRA
HDFC PUNE - 000486 Destination Centre, Upper Tel: 020-64005487/89, Fax: 020-26823022
Bank HADAPSAR - Ground Floor, Magarpatta City
MAGARPATTA Branch, Hadapsar, Pune -
411013, Maharashtra
City: PUNE
District: PUNE
State: MAHARASHTRA
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8. RESEARCH METHODOLOGY:
Objective of the study:
To find out the level of satisfaction of the customers from the service quality
offered by the HDFC bank.
To identify the behaviour of the service given by staff.
Does there is any effect of services on customer behaviour.
Data source:
Primary data:
The primary data was collected by a means of survey. Questionnaires were prepared
after a telephonic interview, by which it was analyze that why they more preferred the
services of HDFC bank. The questionnaires were of 10 questions which tell us why they
prefer the HDFC bank. The response of the customer is recorded on a grade scale for
each question (where 1=strongly disagree, 2=disagree 3=no opinion 4=agree and
5=strongly agree).
Secondary data:
In order to have a proper understanding of the service quality of bank a depth study was
done from the various sources such as books, a lot data is also collected from official
websites of the banks from various search engines like Google, yahoo search and
answers.com.
Instrumentation:
Likert scale was used for the purpose of survey.
Used Minitab software to analyze the data.
Sampling units: customers of HDFC bank, focus study.
Sample technique: random sampling
Contact method: online survey, telephonic interview.
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9. Data analysis:
To analyze the questions I have used factor analysis so that the questions which affect
the services can be analyzed. I have also used mean, median, mode, standard
deviation.
Descriptive Statistics: Response, Response, The bank per, Employees in, ...
N for
Variable Mean CoefVar Median Mode Mode
The bank performs the se 3.600 22.60 4.000 4 18
Employees in the bank gi 3.433 22.54 4.000 4 15
The bank gives you indiv 3.3 22.72 3.000 3 20
This bank does not make 3.233 21.00 3.000 3 21
Are you satisfied with y 3.467 22.39 4.000 4 15
How would you describe y 3.80 17.48 4.000 4 22
How would you describe y 3.467 21.07 3.000 3 17
How would you rate produ 3.367 26.43 3.000 3 15
how you will rate the ex 3.533 19.29 4.000 4 16
What do you feel about o 3.900 18.26 4.000 4 18
Factor Analysis: The bank per, Employees in, The bank giv, This bank do, Are yo
Principal Component Factor Analysis of the Correlation Matrix
Unrotated Factor Loadings and Communalities
Variable Factor1 Factor2 Communality
The bank performs the service r 0.895 0.070 0.806
Employees in the bank give you 0.880 0.132 0.792
The bank gives you individual a 0.525 -0.627 0.668
This bank does not make its cus 0.517 0.455 0.474
Are you satisfied with your fin 0.638 -0.327 0.514
How would you describe your vie 0.643 0.241 0.472
How would you describe your v_1 0.623 -0.290 0.472
How would you rate product offe 0.238 0.865 0.662
how you will rate the experienc 0.858 -0.012 0.736
What do you feel about overall 0.789 0.085 0.630
Variance 4.7034 1.3213 6.0247
% Var 0.470 0.132 0.602
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10. Interpretation:
From factor 1:
From factor analysis result, we can say that first time service,
staff service, prompt service increases the customer
satisfaction.
From factor 2:
From this factor we can say that product also helps in
increasing the customer satisfaction.
Factor Score Coefficients
Variable Factor1 Factor2
The bank performs the service r 0.190 0.053
Employees in the bank give you 0.187 0.100
The bank gives you individual a 0.112 -0.474
This bank does not make its cus 0.110 0.344
Are you satisfied with your fin 0.136 -0.248
How would you describe your vie 0.137 0.182
How would you describe your v_1 0.132 -0.220
How would you rate product offe 0.029 0.504
how you will rate the experienc 0.182 -0.009
What do you feel about overall 0.168 0.064
S cr e e P l o t o f T he b a n k p e r f o r m s the s e r v i c e r , . . . , W h a t d o y o u f e e l a b o u t o v e r a l l
5
4
3
Eige nv a lue
2
1
0
1 2 3 4 5 6 7 8 9 10
Fa c t o r Nu mb e r
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11. QUESTIONNAIRE ANALYSIS:
Which age group do you belong to?
Age category frequency Percentage
18-25 years 6 20%
25-35 years 15 50%
35-45 years 5 16.6%
45 years and above 4 13.3%
Total 30 100
Age Category
13.3% 20%
18-25 years
16.6%
25-35 years
35-45 years
45 years and above
50%
The bank performs the service right the first time?
Frequency Percentage
Strongly disagree 0 0%
Disagree 4 13%
Neutral 6 20%
Agree 18 60%
Strongly agree 2 7%
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12. Employees in the bank give you prompt service?
Frequency Percentage
Strongly disagree 0 0%
Disagree 4 13%
Neutral 9 15%
Agree 16 33%
Strongly agree 1 3%
The bank gives you individual attention?
Frequency Percentage
Strongly disagree 0 0%
Disagree 2 7%
Neutral 20 67%
Agree 5 17%
Strongly agree 3 10%
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13. This bank does not make its customers stand in a queue for a long time?
Frequency Percentage
Strongly disagree 1 3%
Disagree 0 0%
Neutral 21 70%
Agree 7 24%
Strongly agree 1 3%
Are you satisfied with your financial transactions with the bank?
Frequency Percentage
Strongly disagree 1 3%
Disagree 1 3%
neutral 12 40%
Agree 15 50%
Strongly agree 1 3%
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14. How would you describe your views about Internet Banking services?
Frequency Percentage
Strongly disagree 0 0%
Disagree 2 7%
neutral 4 13%
Agree 22 73%
Strongly agree 2 7%
How would you describe your views about ATM Banking services?
Frequency Percentage
Strongly disagree 0 0%
Disagree 1 3%
neutral 17 57%
Agree 9 30%
Strongly agree 3 10%
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15. How would you rate product offered HDFC Bank than other?
Frequency Percentage
Strongly disagree 2 7%
Disagree 0 0%
neutral 15 50%
Agree 11 37%
Strongly agree 2 7%
How you will rate the experience with the staff of HDFC bank?
Frequency Percentage
Strongly disagree 0 0%
Disagree 2 7%
Neutral 11 38%
Agree 15 52%
Strongly agree 1 3%
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16. What do you feel about overall service quality of HDFC bank?
Frequency Percentage
Strongly disagree 0 0%
Disagree 1 3%
neutral 6 20%
Agree 18 60%
Strongly agree 5 17%
Findings:
When the customer comes for the first time to their bank they give a proper attention to
customer, so that the customer can be fully satisfied. There is a huge role of staff in the
satisfaction of customer as the staff provides them good service. Customer also feels
safe while doing any transaction with the bank.
Conclusions:
They should more focus to their first time customer. The products are also giving a
huge satisfaction to customer, so they should provide that product which is more in
favour of them.
According to questionnaire:
 Internet banking facilities was more preferable by the customer.
 Overall service quality of the bank is also good.
 Customer feels safe while doing transaction with the bank.
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17. Recommendations:
Staff should be encouraged to present relevant options to banking customers, so those
customers become more comfortable. Some customers are there who like to go to their
nearby branch and sometimes they become their regular customer. So the staff should
know the name of the people and they should identify their basic service requirements.
During the telephonic interview some people came out with technology that government
banks are not having those technology which private bank is having. Therefore
technology services are also preferred by customers.
References:
www.google.com
www.researchersworld.com
www.studymode.com
finance.taaza.com
www.ukessays.com
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