A

PROJECT REPORT
ON
RETAIL BANKING
AT

(SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE DEGREE

OF
BACHELOR OF BUSINESS ADMINISTRATION
(SESSION 12-14)

SUBMITTED BY:UTKARSH JAISWAL

REG ID:-201224776

DECLARATION

I UTKARSH JAISWAL student of B.B.A. III year in I.B.(P.G.) College, Panipat hereby declare
that the project report entitled RETAIL BANKING AT HDFC BANK submitted for the
degree of B.B.A. III year is my original work and the project report has not formed the basis for
the award of any diploma, degree, associate ship, fellowship or similar other titles. It has not
been submitted to any other university or institution for the award of any degree or diploma.

(PRINCIPAL SIGNATURE)

UTKARSH JAISWAL

ACKNOWLEDGEMENT

Survey is an excellent tool for learning and exploration. No classroom routine can substitute
which is possible while working in real situations. Application of theoretical knowledge to
practical situations is the bonanzas of this survey.
Without a proper combination of inspection and perspiration, its not easy to achieve
anything. There is always a sense of gratitude, which we express to others for the help and
the needy services they render during the different phases of our lives. I too would like to do
it as I really wish to express my gratitude toward all those who have been helpful to me
directly or indirectly during the development of this project.
I would like to thank my professor MISS.NISHA GUPTA who was always there to help and
guide me when I needed help. Her perceptive criticism kept me working to make this project
more full proof. I am thankful to her for his encouraging and valuable support. Working
under her was an extremely knowledgeable and enriching experience for me. I am very
thankful to her for all the value addition and enhancement done to me.
No words can adequately express my overriding debt of gratitude to my parents whose
support helps me in all the way. Above all I shall thank my friends who constantly
encouraged and blessed me so as to enable me to do this work successfully.

UTKARSH JAISWAL

RETAIL BANKING

DEFINITION:
Retail banking is typical mass-market banking where individual customers use local
branches of larger commercial banks. Services offered include: savings and checking accounts,
mortgages, personal loans, debit cards, credit cards, and so
The Retail Banking environment today is changing fast. The changing customer
demographics demands to create a differentiated application based on scalable technology,
improved service and banking convenience. Higher penetration of technology and increase in
global literacy levels has set up the expectations of the customer higher than never before.
Increasing use of modern technology has further enhanced reach and accessibility.
The market today gives us a challenge to provide multiple and innovative contemporary
services to the customer through a consolidated window as so to ensure that the banks customer
gets Uniformity and Consistency of service delivery across time and at every touch point
across all channels. The pace of innovation is accelerating and security threat has become prime
of all electronic transactions. High cost structure rendering mass-market servicing is
prohibitively expensive.
Present day tech-savvy bankers are now more looking at reduction in their operating costs by
adopting scalable and secure technology thereby reducing the response time to their customers so
as to improve their client base and economies of scale.
The solution lies to market demands and challenges lies in innovation of new offering with
minimum dependence on branches a multi-channel bank and to eliminate the disadvantage of
an inadequate branch network. Generation of leads to cross sell and creating additional revenues
with utmost customer satisfaction has become focal point worldwide for the success of a Bank.

RETAIL BANKING AN INTRODUCTION

Retail banking is, however, quite broad in nature - it refers to the dealing of commercial
banks with individual customers, both on liabilities and assets sides of the balance sheet. Fixed,
current / savings accounts on the liabilities side; and mortgages, loans (e.g., personal, housing,
auto, and educational) on the assets side, are the more important of the products offered by
banks. Related ancillary services include credit cards, or depository services. Retail banking
refers to provision of banking services to individuals and small business where the financial

institutions are dealing with large number of low value transactions. This is in contrast to
wholesale banking where the customers are large, often multinational companies, governments
and government enterprise, and the financial institution deal in small numbers of high value
transactions.
The concept is not new to banks but is now viewed as an important and attractive market
segment that offers opportunities for growth and profits. Retail banking and retail lending are
often used as synonyms but in fact, the later is just the part of retail banking. In retail banking all
the needs of individual customers are taken care of in a well-integrated manner.

Todays retail banking sector is characterized by three basic characteristics:

o
o
o

Multiple products (deposits, credit cards, insurance, investments and securities)

Multiple channels of distribution (call center, branch, internet)
Multiple

customer

groups

(consumer,

small

business,

and

corporate).

ORIGIN OF BANKING
Banks are among the main participants of the financial system in India. Banking offers
several facilities and opportunities.
Banks in India were started on the British pattern in the beginning of the 19 th century. The first
half of the 19th century, The East India Company established 3 banks The Bank of Bengal, The
Bank of Bombay and The Bank of Madras. These three banks were known as Presidency Banks.
In 1920 these three banks were amalgamated and The Imperial Bank of India was formed. In
those days, all the banks were joint stock banks and a large number of them were small and
weak. At the time of the 2nd world war about 1500 joint stock banks were operating in India out
of which 1400 were non- scheduled banks. Bad and dishonest management managed quiet a
quiet a few of them and there were a number of bank failures. Hence the government had to step
in and the Banking Companys Act (subsequently named as the Banking Regulation Act) was
enacted which led to the elimination of the weak banks that were not in a position to fulfil the
various requirements of the Act. In order to strengthen their weak units and review public

confidence in the banking system, a new section 45 was enacted in the Banking Regulation Act
in the year 1960, empowering the Government of India to compulsory amalgamate weak units
with the stronger ones on the recommendation of the RBI. Today banks are broadly classified
into 2 groups namely
(a) Scheduled banks.
(b) Non-Scheduled banks.

BENEFITS OF RETAIL BANKING

Traditional lending to the corporate are slow moving along with high NPA risk, treasure
profits are now loosing importance hence Retail Banking is now an alternative available for the
banks for increasing their earnings. Retail Banking is an attractive market segment having a
large number of varied classes of customers. Retail Banking focuses on individual and small
units. Customize and wide ranging products are available. The risk is spread and the recovery is
good. Surplus deployable funds can be put into use by the banks. Products can be designed,
developed and marketed as per individual needs.
SCOPE FOR RETAIL BANKING IN INDIA

o
o

All round increase in economic activity

Increase in the purchasing power. The rural areas have the large purchasing power at their
disposal and this is an opportunity to market Retail Banking.

India has 200 million households and 400 million middleclass population more than 90% of
the savings come from the house hold sector. Falling interest rates have resulted in a shift.
Now People Want To Save Less And Spend More.

Nuclear family concept is gaining much importance which may lead to large savings, large
number of banking services to be provided are day-by-day increasing.

Tax benefits are available for example in case of housing loans the borrower can avail tax
benefits for the loan repayment and the interest charged for the loan.

ADVANTAGES AND DISADVANTAGES OF RETAIL BANKING

ADVANTAGES
Retail banking has inherent advantages outweighing certain disadvantages. Advantages are
analyzed from the resource angle and asset angle.
RESOURCE SIDE

o
o
o
o

Retail deposits are stable and constitute core deposits.

They are interest insensitive and less bargaining for additional interest.
They constitute low cost funds for the banks.
Effective customer relationship management with the retail customers built a strong
customer base.

Retail banking increases the subsidiary business of the banks.

ASSETS SIDE
o Retail banking results in better yield and improved bottom line for a bank.

o
o
o
o
o
o
o

Retail segment is a good avenue for funds deployment.

Consumer loans are presumed to be of lower risk and NPA perception.
Helps economic revival of the nation through increased production activity.
Improves lifestyle and fulfils aspirations of the people through affordable credit.
Innovative product development credit.
Retail banking involves minimum marketing efforts in a demand driven economy.
Diversified portfolio due to huge customer base enables bank to reduce their dependence
on few or single borrower

Banks can earn good profits by providing non fund based or fee based services without
deploying their funds.

DISADVANTAGES

Designing own and new financial products is very costly and time consuming for the
bank.

Customers now-a-days prefer net banking to branch banking. The banks that are slow in
introducing technology-based products, are finding it difficult to retain the customers
who wish to opt for net banking.

o
o

Customers are attracted towards other financial products like mutual funds etc.
Though banks are investing heavily in technology, they are not able to exploit the same to
the full extent.

A major disadvantage is monitoring and follow up of huge volume of loan accounts

inducing banks to spend heavily in human resource department.

Long term loans like housing loan due to its long repayment term in the absence of
proper follow-up, can become NPAs.

The volume of amount borrowed by a single customer is very low as compared to

wholesale banking. This does not allow banks to to exploit the advantage of earning huge
profits from single customer as in case of wholesale banking.

OPPORTUNITIES
Retail banking has immense opportunities in a growing economy like India. As the
growth story gets unfolded in India, retail banking is going to emerge a major driver.
The rise of Indian middle class is an important contributory factor in this regard. The percentage
of middle to high-income Indian households is expected to continue rising. The younger
population not only wields increasing purchasing power, but as far as acquiring personal debt is
concerned, they are perhaps more comfortable than previous generations. Improving consumer
purchasing power, coupled with more liberal attitudes towards personal debt, is contributing to
Indias retail banking segment.

The combination of above factors promises substantial growth in retail sector, which at present is
in the nascent stage. Due to bundling of services and delivery channels, the areas of potential
conflicts of interest tend to increase in universal banks and financial conglomerates. Some of the
key policy issues relevant to the retail-banking sector are: financial inclusion, responsible
lending, and access to finance, long-term savings, financial capability, consumer protection,
regulation and financial crime prevention.

CHALLENGES TO RETAIL BANKING IN INDIA

The issue of money laundering is very important in retail banking. This compels all the
banks to consider seriously all the documents which they accept while approving the
loans.

The issue of outsourcing has become very important in recent past because various core
activities such as hardware and software maintenance, entire ATM set up and operation
(including cash, refilling) etc., are being outsourced by Indian banks.

o
o

Banks are expected to take utmost care to retain the ongoing trust of the public.
Customer service should be at the end all in retail banking. Someone has rightly said, It
takes months to find a good customer but only seconds to lose one. Thus, strategy of
Knowing Your Customer (KYC) is important.

So the banks are required to adopt

innovative strategies to meet customers needs and requirements in terms of

services/products etc.

The dependency on technology has brought IT departments additional responsibilities

and challenges in managing, maintaining and optimizing the performance of retail

banking networks. It is equally important that banks should maintain security to the
advance level to keep the faith of the customer.

The efficiency of operations would provide the competitive edge for the success in retail
banking in coming years.

The customer retention is of paramount important for the profitability if retail banking
business, so banks need to retain their customer in order to increase the market share.

One of the crucial impediments for the growth of this sector is the acute shortage of
manpower talent of this specific nature, a modern banking professional, for a modern
banking sector.

STRATEGIES FOR INCREASING RETAIL BANKING BUSINESS

Constant product innovation to match the requirements of the customer segments

The customer database available with the banks is the best source of their demographic and
financial information and can be used by the banks for targeting certain customer segments
for new or modified product. The banks should come out with new products in the area of
securities, mutual funds and insurance.

Quality service and quickness in delivery

As most of the banks are offering retail products of similar nature, the customers can easily
switchover to the one, which offers better service at comparatively lower costs. The quality
of service that banks offer and the experience that clients have, matter the most. Hence, to
retain the customers, banks have to come out with competitive products satisfying the desires
of the customers at the click of a button.

Introduction of new delivery channels

Retail customers like to interface with their bank through multiple channels. Therefore,
banks should try to give high quality service across all service channels like branches,
Internet, ATMs, etc.

Tapping of unexploited potential and increasing the volume of business

This will compensate for the thin margins. The Indian retail banking market still remains
largely untapped giving a scope for growth to the banks and financial institutions. With

changing psyche of Indian consumers, who are now comfortable with the idea of availing
loans for their personal needs, banks have tremendous potential lying in this segment.
Marketing departments of the banks be geared up and special training be imparted to them so
that banks are successful in grabbing more and more of retail business in the market.

Infrastructure outsourcing
This will help in lowering the cost of service channels combined with quality and quickness.

Detail market research

Banks may go for detail market research, which will help them in knowing what their
competitors are offering to their clients. This will enable them to have an edge over their
competitors and increase their share in retail banking pie by offering better products and
services.

Cross-selling of products
PSBs have an added advantage of having a wide network of branches, which gives them an
opportunity to sell third-party products through these branches.

Business process outsourcing

Outsourcing of requirements would not only save cost and time but would help the banks in
concentrating on the core business area. Banks can devote more time for marketing,
customer service and brand building. For example, Management of ATMs can be outsourced.
This will save the banks from dealing with the intricacies of technology.

Tie-up arrangements
PSBs with regional concentration can reap the benefit of reaching customers across the
country by entering into strategic alliance with other such banks with intensive presence in
other regions. In the present regime of falling interest and stiff competition, banks are aware
that it is finally the retail banking which will enable them to hold the head above water.
Hence, banks should make all out efforts to boost the retail banking by recognizing the needs
of the customers. It is essential that banks would be imaginative in predicting the customers'
expectations in the ever-changing tastes and environments. It is the innovative and
competitive products coupled with high quality care for clients will only hold

SPECIAL FEATURES OF RETAIL CREDIT

One of the prominent features of Retail Banking products is that it is a volume driven
business. Further, Retail Credit ensures that the business is widely dispersed among a large
customer base unlike in the case of corporate lending, where the risk may be concentrated on a
selected few plans. Ability of a bank to administer a large portfolio of retail credit products
depends upon such factors :

Strong credit assessment capability

Because of large volume good infrastructure is required. If the credit assessment itself is
qualitative, than the need for follow up in the future reduces considerably.

o Sound documentation
A latest system for credit documentation is necessary pre-requisite for healthy growth of credit
portfolio, as in the case of credit assessment, this will also minimize the need to follow up at
future point of time.

Strong possessing capability

Since large volumes of transactions are involved, today transactions, maintenance of backups is
required

Regular constant follow- up

Ideally, follow up for loan repayments should be an ongoing process. It should start from
customer enquiry and last till the loan is repaid fully.

Skilled human resource

This is one of the most important pre-requisite for the efficient management of large and diverse
retail credit portfolio. Only highly skilled and experienced man power can withstand the river of
administrating a diverse and complex retail credit portfolio.

Technological support
This is yet another vital requirement. Retail credit is highly technological intensive in nature,
because of large volumes of business, the need to provide instantaneous service to the customer
large, faster processing, maintaining database, etc.

EMERGING ISSUES IN HANDLING RETAIL BANKING

O KNOWING CUSTOMER
Know your Customer is a concept which is easier said than practiced. Banks face
several hurdles in achieving this. In order to that the product lines are targeted at the
right customers-present and prospective-it is imperative that an integrated view of
customers is available to the banks. The benefits flowing out of cross-selling and upselling will remain a far cry in the absence of this vital input. In this regard the customer
databases available with most of the public sector banks, if not all, remain far from being
enviable.
What needs to be done is setting up of a robust data warehouse where from
meaningful data on customers, their preferences, there spending patterns, etc. can be
mined. Cleansing of existing data is the first step in this direction. PSBs have a long
way to go in this regard.

O TECHNOLOGY ISSUES
Retail banking calls for huge investments in technology. Whether it is setting up of a
Customer Relationship Management System or Establishing Loan Process Automation or

providing anytime, anywhere convenience to the vast number of customers or

establishing channel/product/customer profitability, technology plays a pivotal role. And
it is a long haul. The Issues involved include adoption of the right technology at the right
time and at the same time ensuring volumes and margins to sustain the investments.
It is pertinent to remember that Citibank, known for its deployment of technology,
took nearly a decade to make profits in credit cards. It has also to be added in the same
breath that without adequate technology support, it would be well nigh possible to
administer the growing retail portfolio without allowing its health to deteriorate. Further,
the key to reduction in transaction costs simultaneously with increase in ability to handle
huge volumes of business lies only in technology adoption.
PSBs are on their way to catch up with the technology much required for the
success of retail banking efforts. Lack of connectivity, stand alone models, concept of
branch customer as against bank customer, lack of convergence amongst available
channels, absence of customer profiling, lack of proper decision support systems, etc., are
a few deficiencies that are being overcome in a great way. However, the initiatives in this
regard should include creating flexible computing architecture amenable to changes and
having scalability, a futuristic approach, networking across channels, development of a
strong Customer Information Systems (CIS) and adopting Customer Relationship
Management (CRM) models for getting a 360 degree view of the customer.

O ORGANIZATIONAL ALIGNMENT
It is of utmost importance that the culture and practices of an institution support its stated
goals. Having decided to take a plunge into retail banking, banks need to have a well
defined business strategy based on the competitive of the bank and its potential. Creation
of a proper organization structure and business operating models which would facilitate
easy work flow are the needs of the hour. The need for building the organizational
capacity needed to achieve the desired results cannot be overstated.
This would mean a strong commitment at all levels, intensive training of the rank
and file, putting in place a proper incentive scheme, etc. As a part of organizational
alignment, there is also the need for setting up of an effective Corporate Marketing
Division. Most of the public sector banks have only publicity departments and not
marketing setup. A fully fledged marketing department or division would help in
evolving a brand strategy, address the issue of alienation from the upwardly mobile, high
net worth customer group and improve the recall value of the institution and its products
by arresting the trend of getting receded from public memory. The much needed tie-ups

with manufacturers/distributors/builders will also facilitated smoothly. It is time to break

the myth PSBs are not customer friendly. The attention is to be diverted to vast databases
of customers lying with the PSBs till unexploited for marketing.

O PRODUCT INNOVATION
Product innovation continues to be yet another major challenge. Even though bank after
bank is coming out with new products, not all are successful. What is of crucial
importance is the need to understand the difference between novelty and innovation?
Peter Drucker in his path breaking book: Management Challenges for the 21st Century
has in fact sounded a word of caution: innovation that is not in tune with the strategic
realities will not work; confusing novelty with innovation (should be avoided), test of
innovation is that it creates value; novelty creates only amusement. The days of selling
the products available in the shelves are gone. Banks need to innovate products suiting
the needs and requirements of different types of customers. Revisiting the features of the
existing products to continue to keep them on demand should not also be lost sight of.

O PRICING OF PRODUCT
The next challenge is to have appropriate policies in place. The industry today is
witnessing a price war, with each bank wanting to have a larger slice of the cake that is
the market, without much of a scientific study into the cost of funds involved, margins,
etc. The strategy of each player in the market seems to be: under cutting others and
wooing the clients of others. Most of the banks that use rating models for determining
the health of the retail portfolio do not use them for pricing the products. The much
needed transparency in pricing is also missing, with many hidden charges. There is a
tendency, at least on the part of few to camouflage the price. The situation cannot remain
his way for long. This will be one issue that will be gaining importance in the near
future.

O PROCESS CHANGES
Business Process Re-engineering is yet another key requirement for banks to handle the
growing retail portfolio. Simplified processes and aligning them around delivery of
customer service impinging on reducing customer touch-points are of essence. A
realization has to drawn that automating the inefficiencies will not help anyone and
continuing the old processes with new technology would only make the organization an
old expensive one. Work flow and document management will be integral part of process

changes. The documentation issues have to remain simple both in terms of documents to
be submitted by the customer at the time of loan application and those to be executed
upon sanction.

1.1 GENERAL INTRODUCTION ABOUT THE

SECTOR

The Indian economy is emerging as one of the strongest economy of the world with the GDP
growth of more than 8% every year. This has given a great support for the development of
banking industry in the country .Due to recession it has come down to 5.7%. But market now
stabilizing.
Due to globalization, competition among the banks has drastically been increased .As India has a
substantial upper and middle class income hence the banks have immense opportunities to
increase their market shares. The consumer being on the receiving end is in the comfortable
position but the banks trying to increase their market share have to continuously add value for
consumers in order to increase market share and sustain their growth.
BANKING SECTOR
The banking sector is the most dominant sector of the financial system in India. Significant
progress has been made with respect to the banking sector in the post liberalization period. The
financial health of the commercial banks has improved manifolds with respect to capital
adequacy, profitability, and asset quality and risk management. Further, deregulation has opened
new opportunities for banks to increase revenue by diversifying into investment banking,
insurance, credit cards, depository services, mortgage, securitization, etc. Liberalization has
created a more competitive environment in the banking sector
1.2 INDUSTRY PROFILE
a) ORIGIN AND DEVELOPMENT OF THE INDUSTRY
The origin of banking in India is traceable in ancient time through the modern banking hardly
200 years old. The main function of bank is to accept deposits and grant loans. There is evidence

of these functions being performed by a section of the community in the Vedic periods. There
are many references of debt in the Vedic literature. During the Ramayana and Mahabharata areas
banking, which was a side business during the Vedic period, become a full-time business activity
for the people. During the smriti period, which followed the Vedic period and the Epic age,
bankers performed the function of the modern banks. The members of the Vaish community
carried on the banking business and Manu speaks of earning through interest as the business of
Vaishays. He accepted deposits from the public, granted loans against pledges and personal
security, granted simple open loans, acted as bailee for his customers, subscribed to public loans
by granting loans to kings, acted as treasurer and banker to the state and managed the currency of
the country. Indigenous bankers used to maintain a regular system of accounts and borrowers
used to sign the loan deeds.

Retail banking
According to investopedia.com, retail banking is typical mass-market banking where individual
customers use local branches of larger commercial banks. Services offered include: savings and
checking accounts, mortgages, personal loans, debit cards, credit cards, and so forth.

Types of retail banks

Private bank
Private Banks is a bank that is not incorporated. Either an individual or a general partner(s) with
limited partner(s) owns a non-incorporated bank. In any such case, the creditors can look to both
the "entirety of [the bank's] assets" as well as the entirety of the sole-proprietor's/generalpartners' assets.

These banks have a long tradition in Switzerland, dating back to at least the revocation of the
Edict of Nantes (1685).

Commercial banking
A commercial bank is a type of financial intermediary and a type of bank. Commercial bank has
two possible meanings:
Commercial bank is the term used for a normal bank to distinguish it from an investment bank.
This is what people normally call a "bank". The term "commercial" was used to distinguish it
from an investment bank. Since the two types of banks no longer have to be separate companies,
some have used the term "commercial bank" to refer to banks which focus mainly on companies.
In some English-speaking countries outside North America, the term "trading bank" was and is
used to denote a commercial bank. It raises funds by collecting deposits from businesses and
consumers via checkable deposits, savings deposits, and time (or term) deposits. It makes loans
to businesses and consumers. It also buys corporate bonds and government bonds. Its primary
liabilities are deposits and primary assets are loans and bonds. Detailed information on banks
sectoral exposure of credit reveals that over two-thirds of the credits flow has been on account of
retail, housing and other priority sector loans. Banks credit flow exposure to large Enterprises
continues to remain buoyant with recent indications that credit to agriculture and Micro credit
has also picked up. The Investment Banking and Markets division brings together the advisory
and financing, equity securities, asset management, treasury and capital markets, and private
equity activities of the Group to complete the CIBM structure and provide a complete range of
financial products to our clients. Increasingly, ECA financing is being
b) GROWTH AND PRESENT STATUS OF THE INDUSTRY

Commercial banking can also refer to a bank or a division of a bank that mostly deals with
deposits and loans from corporations or large businesses, as opposed to normal individual
members of the public (retail banking). as in the Indian banking.. The most prominent on our
minds in the context of banking these days, perhaps, are the implications arising out of the Basel
II accord. Banks, as we all know, are subjected to more intense regulation as compared to the
non-financial firms. This is probably because the banks possess certain 'special' characteristics:
Banks are much more leveraged than the other firms due to their capacity to garner public
deposits. The asset - liability structure of the banks is also different from not only the nonfinancial firms but also the financial firms. To illustrate, the risk in an insurance company arises
mainly from the liability side of the balance sheet in the form of insurance claims whereas for the
bank the risk mainly comes from the diminution of asset values (for example, illiquid loans that
are not fully recoverable). The deposits which constitute a major part of the liability of banks are
repayable on demand, unsecured and their principal amount does not change in value whereas
the loans of a bank are illiquid and there can be erosion in the value of loans or of other assets.
The liquidity transformation by an insurance company is in the reverse direction as compared to
a bank. The balance-sheet structure of an insurance company is the least likely to give rise to
systemic risk, whereas banks due to their typical asset liability mismatches i.e. long term assets
funded by short term liabilities, may be prone to run and pose a very high degree of potential
systemic risk. The resolution costs of systemic bank insolvencies and significant problems can be
substantial. weighted differently.
Basel I proposals forced the banks to look at credit risk and regulatory capital more closely than
they had done earlier. As banks found ways to arbitrage regulatory capital, some of the
provisions of Basel I became less relevant. Simultaneously, banks in the G-10 countries
developed newer approaches to manage credit risk by building portfolio models for pricing,
provisioning and allocating economic capital for the credit portfolios. These developments made
the weaknesses in the Basel I framework more apparent and this set the stage for the creation of
'International Convergence of Capital Measurement and Capital Standards: A Revised
Framework', popularly known as Basel II.
The Basel Committee on Banking Supervision has observed that the fundamental objective in
revising the 1988 Accord has been, and I quote, 'to develop a framework that would further
strengthen the soundness and stability of the international banking system while maintaining
sufficient consistency that capital adequacy regulation will not be a significant source of
competitive inequality among internationally active banks. The (Basel) Committee believes that

the revised Framework will promote the adoption of stronger risk management practices by the
banking industry, and views this as one of its major benefits' Unquote

c) Future of the industry

Reflecting on future prospects in banking, immediate focus has to be on the cleaning up of the
remnants of undercapitalized banks, while concentrating on improvements in the rural cooperative credit system. It is also necessary to ensure improvements in their governance and
financial management. In the banking system as a whole, a healthy credit culture encompassing
appropriate pricing, quality of service, financial inclusion and contract-enforcement would be
vital.
The Reserve Bank of India has, in the service of our country, a proven track record and
professionalism, which have lent it considerable credibility - both domestically and globally.
This credibility enables the RBI to confidently carry the reforms forward to credibly maintain
price and financial stability, while enabling self-accelerating equitable growth at elevated levels
The Indian financial sector is ready for consolidation, said 95 per cent of the respondents. Given
the increased competition, and the implementation of Basel II norms in the near future, the
banking industry of the country would be better off with six to seven banks as big as State Bank
of India, said the survey. However, voluntary mergers are better than forced ones.
A majority of the public sector banks also demanded more autonomy to fix salary levels
proportionate to performance. In order to improve employee productivity it is essential to offer
competitive compensation packages at all levels, the survey said. About 92 per cent of the public
sector banks respondents voiced that they do not have sufficient autonomy to offer attractive
incentive packages to employees to ensure commitment levels.
Some banks also said that in one-year's time, banks should be permitted to issue preference
shares. According to the survey, some of the strengths of the banking industry are regulatory
systems, economic growth, technological advancement, risk assessment systems and credit
quality.
Areas that need improvement include diversification of markets beyond big cities, human
resources systems, size of banks, high transaction costs, infrastructure and labour inflexibilities.

As per the survey some strategies that can help India achieve a world class banking system are
consolidation, strict corporate governance norms, regional expansion within the country and
outside, higher FDI limits and Free Trade Agreements with countries where India has
comparative advantage in banking sector.
"Availability and reach of quality products is confined to just big cities. Thus it is essential now
to expand the gamut of banking services both within India as well as outside," the survey said.
However, banks in India are yet to effectively leverage technology. ICICI Bank has been
acknowledged to be among the first to explore new mediums like Internet.
India has among the lowest penetration of retail loans in Asia. Though the sector has been
growing at around 15 per cent, there is still a huge opportunity to tap into. Middle and -highincome homes in India has increased from 1.16 crore (11.6 million) in 1995 to 2.57 crore (25.7
million) in 2002. Interest rates on retail loans have been dropping rapidly too. For instance
residential mortgages slumped by 7 per cent over the last four years.

"The entry of a number of banks in India in the last few years has helped provide increased
coverage and a number of new products in the market," says Kamath.

banking sector today is estimated to be at Rs 17 trillion and total deposits are estimated at Rs 13
Sector
Share of GDP %
Growth of Q1 FY 2003
Growth in Q2 FY 2003
Services

56.1

7.4

9.8

Industry

21.8

5.8

6.3

Agriculture

22.1

1.7

7.4

5.7

8.4

GDP
trillion.

2.1 ORIGIN OF THE ORGANIZATION

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.
2.2 GROWTH AND DEVELOPMENT OF THE ORGANIZATION

HDFC Bank is head quartered in Mumbai. The Bank at present has an enviable network of over
684 branches spread over 316 cities across India. All branches are linked on an online real-time
basis. Customers in over 120 locations are also serviced through Telephone Banking. The Bank's
expansion plans take into account the need to have a presence in all major industrial and
commercial 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
have a strong and active member base. The Bank also has a network of about over 4000
networked ATMs across these cities. Moreover, HDFC Bank's ATM network can be accessed by

all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and

American Express Credit/Charge cardholders.
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. 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.

2.3 PRESENT STATUS OF THE ORGANIZATION

At present HDFC Bank is the leading most bank in the housing and development sector and is
growing very fast in the other banking sectors such as life insurance & mutual fund.
The authorized capital of HDFC Bank is Rs.450 crore (Rs.4.5 billion). The paid-up capital is
Rs.311.9 crore (Rs.3.1 billion). The HDFC Group holds 22.1% of the bank's equity and about
19.4% of the equity is held by the ADS Depository (in respect of the bank's American Depository
Shares (ADS) Issue). Roughly 31.3% of the equity is held by Foreign Institutional Investors
(FIIs) and the bank has about 190,000 shareholders. The shares are listed on The Stock
Exchange, Mumbai and the National Stock Exchange. The bank's American Depository Shares
are listed on the New York Stock Exchange (NYSE) under the symbol "HDB.
HDFC Limited, Bennett, Coleman & Co. Ltd. and its group companies (the promoters of
erstwhile Times Bank Limited) and Chase Funds had entered into tripartite agreement dated
November 26, 1999 for effecting amalgamation of Times Bank Limited with the Bank. Under
this Agreement, Bennett Coleman Group has a right to nominate one Director on the Board of
the Bank as long as its holding exceeds 5% of the share capital of the Bank. Currently, as on
March 31, 2007, the Bennett Coleman Group holds 5.15% of the share capital of the Bank and
Mr. Vineet Jain represents the group on the Board of the Bank.

2.4 FUNTIONAL DEPARTMENT OF THE ORGANIZATION

Chairman
Managing
Director
Executive Director

Regional Sales
Head
Area sales Head

Area Sales
Manager
Deputy Sales
Manager
Team Leader

Contract Sales
Executive

2.5 ORGANIZATION STRUCTURE AND ORGANIZATION CHART

Chairman

Managing Director & C E

O

Joint Managing Director

Joint Managing Director

(Domestic Banking)

(International Business)

Executive
Director

Executive
Director

Executive
Director

Sr. General Managers

General Managers

Executive
Director

2.6 PRODUCT AND SERVICE PROFILE OF THE ORGANIZATION

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 auctional banking services, including working
capital finance, trade services, transactional services, cash management, etc. The bank is also a
leading provider of structured solutions, which combine cash management services with vendor
and distributor finance for facilitating superior supply chain management for its corporate
customers. Based on its superior product delivery / service levels and strong customer
orientation, the Bank has made significant inroads into the banking consortia of a number of
leading Indian corporates including multinationals, companies from the domestic business
houses and prime public sector companies. It is recognized as a leading provider of cash
management and transactional banking solutions to corporate customers, mutual funds, stock
exchange members and banks.
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 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 MasterCard 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.

Deposits
I.

Savings Account

These accounts are primarily meant to inculcate a sense of saving for the future, accumulating
funds over a period of time. Whatever customer occupation, bank is confident that customer will
find the perfect banking solution.

II.

Debit-cum-ATM card

Auto Invest Account

Internet Banking

Phone banking

Anywhere Banking

Standing Instruction

Nomination facility

Doorstep service

Special savings account

Comprehensive banking
Solution with added features
Supplementary savings
Ideal for tax-exempt entities
Internet banking
Anywhere banking
Doorstep service
Inward remittance

III.

Senior Citizen Services

Higher interest rates
Special demand loans against deposit

 Free collection of outstation cheques drawn on our locations.

Debit-cum-ATM-card
Auto Invest Account
Internet banking
Phone banking
Anywhere banking
Standing instructions
Nomination facility
IV.

Fixed deposits
Wide range of tenures
Choice of investment plans
Partial withdrawal permitted
Safe custody of fixed deposit receipts
Auto renewal possible
Loan facility available

V.

D-Mat accounts
Free trading account
Online buying and selling of shares
Less documentation
Can control loss of money

2.7 MARKET PROFILE OF THE ORGANISATION

HDFC Bank has its deposit programmes rated by two rating agencies - Credit Analysis &
Research Limited. (CARE) and Fitch Ratings India Private Limited. The Bank's Fixed Deposit
programme has been rated 'CARE AAA (FD)' [Triple A] by CARE, which represents instruments
considered to be "of the best quality, carrying negligible investment risk". CARE has also rated
the Bank's Certificate of Deposit (CD) programme "PR 1+" which represents "superior capacity
for repayment of short term promissory obligations". Fitch Ratings India Pvt. Ltd. (100%
subsidiary of Fitch Inc.) has assigned the "tAAA (ind)" rating to the Bank's deposit programme,
with the outlook on the rating as "stable". This rating indicates "highest credit quality" where
"protection factors are very high". HDFC Bank also has its long term unsecured, subordinated

(Tier II) Bonds of Rs.4 billion rated by CARE and Fitch Ratings India Private Limited. CARE
has assigned the rating of "CARE AAA" for the Tier II Bonds while Fitch Ratings India Pvt. Ltd.
has assigned the rating "AAA (Ind)" with the outlook on the rating as "stable". In each of the
cases referred to above, the ratings awarded were the highest assigned by the rating agency for
those instruments?
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. To comply with statutory reserve requirements, the bank is
required to hold 25% of its deposits in government securities.

3.1

STUDENTS WORK PROFILE (Role and Responsibility).

I am working as contract sales executive in HDFC bank; my role is to find out people who want
to open savings A/c. I have to convince the customers to open savings account in our bank. After
convincing, I use to fill up the forms through customers and collect their documents to login the
form for opening their accounts. There are some targets in a month, which we need to reach in
bank. I have done many activities like park activities, ATM activities, Apartments activities etc to
generate my leads. By doing these activities we get customers for opening accounts. The roles
and responsibilities handled by me are:
1) Generating leads for opening accounts
2) Preparing daily sales report of daily activities
3) Answering to customer queries.
4) Verification of the documents given by the customers.

After three month working experience I came to know how to handle the people & task in the
organization. Now I feel much confident.
Being a sales executive I have to answer to the customers as well as team leader to the queries. I
have to fulfill my individual target.
3.2 DESCRIPTION OF LIVE EXPERIENCES.

This training has helped me a lot in understanding the realities of the outside world. I also came
to know the real meaning of the word marketing. There are both negative and positive
experiences of our training. Some of these are:

Real exposure to the corporate world, which helped me a lot in understanding the mind,
set of executives to a certain extent.

Learned about customer requirements, customer mind set how to convince others and
many.

It helped me in improving my communication skills, presentation skills and how to

behave in front of public.

Apart from these positive experiences I faced certain problems too

which I

would

like to discuss here:

It was quite difficult in the beginning to cope with both college studies and job.
Initially it took me sometime to understand the process of sales opening, closing,
however with time I understood the problem and worked on it

sincerely. Now I feel

much more confident in handling sales calls.

4.1 STATEMENT OF RESEARCH PROBLEM

The company must gain confidence of the customers and provide services par excellence.
Therefore, undertaking the project helps in assessing the customer care level of HDFC BANK.
The study is applied descriptive as well as diagnostic in nature. It also tends to find the customer
view about important aspects of the services. At the same time it was intended to find the
customer view about the product and the quality of service improvement. In short this problem
can be defined as: Are customers satisfied with the services at HDFC?
In todays era of cutthroat competition, it is of an uttermost importance to gain a cutting edge
over the competition, and develop a large market share. This is only possible if there is a large
customer base for the company.

4.2 RESEARCH OBJECTIVES:

1. To evaluate the perception level of the account holders towards HDFC BANK
2. To study the importance of customer relationship.
3. To study the impact of customer relationship management on bank customers.
4. To analyze the expectations of banking customers.
5. To suggest the banks under study to strengthen the customer relations.
6. To analyze the satisfaction level of customers of HDFC BANK on the following heads:

1.
2.
3.
4.
5.
6.

Working environment
Customer care
Personal care of the customers
Bank timings
Overall services
Special schemes provided

4.3 RESEARCH DESIGN AND METHODOLOGY.

THE METHOD USED OF DATA COLLECTION ARE:
Primary Data
Secondary Data
PRIMARY DATA: Primary data are datas, which are original in nature, and are collected by
the researcher. The method used to collect the primary data was Survey Method. The survey
method included a structured questionnaire that was given to the respondent.
SECONDARY DATA: Secondary data are data, which has been collected and compiled in
advance for another needed purpose. Secondary data is an important method to know the present
problem faced by the account holders in the field of HDFC BANK. Newspaper, Articles, Books,
Magazines etc. have been used to prepare the questionnaire.
PLAN OF ANALYSIS:
Calculations have been done for interpretation such as percentages, averages.
The data collected from respondents through questionnaire are organized, coded, processed and
tabulated in order to create graphs and charts to make the project understandable. Chi Square
Test is performed on the inferred data to arrive at a statistical conclusion.
TOOLS FOR DATA COLLECTION
The tool used for data collection is Primarily Questionnaire method. The questions contained:
Open- Ended Questions
Where the respondent was given a chance to reply or give suggestions to the Company. This
included Free Responses questions where the respondents were given the freedom to give
suggestions.
Close - Ended Questions
Where the respondent was given a lesser chance to reply. This includes multiple Choice
Questions where the respondents were given a number of alternatives.

Scales
Respondents were given a scale whose positions range from Highly Satisfied to Highly
Dissatisfied
Area of survey
The area selected to find the satisfactory level was in and around Bannerghatta Road.
Sample Unit
The sample was considered to be the Customers of HDFC BANK
SAMPLING:
Random sampling method to select a sample of 100 customers among the customers of the
HDFC BANK.
4.4 ANALYSIS OF DATA

As the competition level in the banking sector is ever increasing, it becomes indispensable for
the company (HDFC) to conduct the study on the perception and satisfaction level of its
customers. This study will help the company in making its new strategies to satisfy its customer
in the ways in which he or she wants to be satisfied and to the company its position in the
market.
The study on customer satisfaction has the geographical coverage limited to Bannerghatta Road
only. This study will help the company to know in detail about the customer perception and their
attitude towards the company services and products. The company will gain the feedback from
the customer to improve its products and quality of service.
TABLE 1: SHOWING DISTRIBUTION OF AGE

AGE GROUP

NO. OF RESPONDENTS

PERCENTAGE

20 30

22

22%

30 40

43

43%

40 AND ABOVE

35

35%

TOTAL

100

100%

ANALYSIS

The above table shows that 22% of the respondents fall under the age group of 20 30
years ,43% of the respondents fall under age group of 30 40 years and 35% of the
respondents belonging to age group of 40 and above years.

INFERENCE

Hence it clearly shows that the majority of the respondents fall under the age group of
30 40 years i.e. 43%.

GRAPH-1

TABLE 2: SHOWING DISTRIBUTION OF SEX OR GENDER

GENDER

NO. OF RESPONDENTS

PERCENTAGE

FEMALE

43

43%

MALE

57

57%

TOTAL

100

100%

ANALYSIS
The table shows that there are 57% of male respondents and 43% of female respondents.
INFERENCE
Thus the table clearly shows that the majority of the respondents are male i.e. 57%.

GRAPH-2

TABLE 3: SHOWING THE DISTRIBUTION OF THE MONTHLY HOUSEHOLD

INCOME

MONTHLY HOUSEHOLD

NO. OF RESPONDENTS

PERCENTAGE

LESS THAN RS 10,000

0%

RS 10,000 RS 20,000

23

23%

MORE THAN RS 20,000

77

77%

TOTAL

100

100%

INCOME

ANALYSIS

The above table shows that there are no respondents who have a monthly household
income of less than Rs 10,000, there are 23% of the respondents who fall under Rs
10,000 Rs 20,000 household income and 77% fall under the more than Rs 20,000
household income category.

INFERENCE
The table clearly shows that the majority of the respondents have more than Rs 20,000
of monthly household income, that is 77%.

GRAPH-3

TABLE 4: SHOWING THE IMPORTANCE OF A SMILING EMPLOYEE ACCORDING

TO A CUSTOMER

IMPORTANCE

NO. OF RESPONDENTS

PERCENTAGE

VERY IMPORTANT

55

55%

SOMEWHAT IMPORTANT

20

20%

NOT SO IMPORTANT

20

20%

NOT AT ALL IMPORTANT

5%

TOTAL

100

100%

ANALYSIS

According to the table 55% of the respondents feel its extremely important for a
employee to welcome a customer with a smile,20% respondents think its somewhat
important while 20% feel its not so important and 5% think its not at all important.
INFERENCE

Hence when a customer enters the bank , he looks for a smiling employee to welcome
him, its extremely important to him(55% of respondents think its very important).

GRAPH-4

TABLE 5: SHOWING THE IMPORTANCE OF THE SIZE OF THE CHEQUE BOOK

ACCORDING TO THE CUSTOMERS

IMPORTANCE

NO. OF RESPONDENTS

PERCENTAGE

VERY IMPORTANT

20

20%

SOMEWHAT IMPORTANT

45

45%

NOT SO IMPORTANT

30

30%

NOT AT ALL IMPORTANT

5%

TOTAL

100

100%

ANALYSIS

The table shows that according to the 20% of the respondents its very important that the
cheque book size is appropriate,30% of the respondents think its not so important, 5% of
the respondents think its not at all important while 45% of the respondents think its
somewhat important.

INFERENCE

Hence the table clearly shows that the majority of the respondents think its somewhat
important for the cheque book size to be appropriate.

GRAPH-5

TABLE 6: SHOWING THE IMPORTANCE OF THE BANK TIMING ACCORDING TO

THE CUSTOMERS
IMPORTANCE

NO.OF RESPONDENTS

PERCENTAGE

VERY IMPORTANT

65

65%

SOMEWHAT IMPORTANT

20

20%

NOT SO IMPORTANT

15

15%

NOT AT ALL IMPORTANT

0%

TOTAL

100

100%

ANALYSIS

The above table relates that the 65% of the respondents think its extremely important for
the

bank

timing

to

be

convenient,20%

of

the

respondents

think

its

somewhat

important,15% of the respondents think its not so important while none of them think its
not at all important.

INFERENCE

Table number 7 clearly shows that majority of the customers think that its very
important that the bank timings are convenient i.e. 65%

TABLE 7: SHOWING THE IMPORTANCE OF THE ( ZERO BALANCE SAVINGS

ACCOUNTS ) FACILITY ACCORDING TO THE CUSTOMERS
IMPORTANCE

NO.

OF PERCENTAGE

RESPONDENTS
VERY IMPORTANT

80

80%

SOMEWHAT IMPORTANT

20

20%

NOT SO IMPORTANT

0%

NOT AT ALL IMPORTANT

0%

TOTAL

100

100%

ANALYSIS

According to the table above none of the respondents think its not at all or not so
important that the ZERO BANLANCE CURRENT ACCOUNT SHOULD be provided, while
80% of the respondents think its very important and 20% of the respondents think its
somewhat important.

INFERENCE
Hence the table clearly shows that the majority of the customers think its very important
that the ZERO BALANCE SAVINGS ACCOUNT facility should be provided that is 80%.

GRAPH-7

TABLE 8: SHOWING THE IMPORTANCE OF TRANSACTION TIMING IN HDFC

BANK ACCORDING TO CUSTOMRES
VARAIBLES

RESPONDENTS

PERCENTAGE

HIGHLY SATISFIED

10

10%

SATISFIED

62

62%

NEUTRAL

23

23%

DISSATISFIED

5%

HIGHLY DISSATISFIED

0%

100

100%

ANALYSIS
From the above table , it can be analyzed that out of 100 respondents 10% only are
highly satisfied with the Transaction timing of the Bank , 62% of them are satisfied , 23%
of them are on the neutral side . Moreover 5% of them are dissatisfied and none are
highly dissatisfied.

INFERENCE
Therefore, it can be inferred that almost 5% of the respondents are not happy with the
time taken for transaction . This indicates that the customers are not satisfied with the
speed of the transaction .

GRAPH-8

TABLE 9: SHOWING THE IMPORTANCE OF CUSTOMER CARE IN HDFC BANK

ACCORDING TO CUSTOMRES
VARAIBLES

RESPONDENTS

PERCENTAGE

HIGHLY SATISFIED

12

12%

SATISFIED

63

63%

NEUTRAL

21

21%

DISSATISFIED

4%

HIGHLY DISSATISFIED

0%

TOTAL

100

100%

ANALYSIS

The above table shows that out of 100 respondents 12% are highly satisfied with the
Customer Care of the HDFC Bank, 63% of them are satisfied and 21% are neutral,
moreover 4% of them are dissatisfied and none of them are highly dissatisfied.

INFERENCE
In todays world customer care is one of the most important criteria as it helps the
organization to retain their or add market share . Therefore , HDFC should work towards
the 4% dissatisfied customers either by training the employees or making the procedure
customer friendly

GRAPH-9

TABLE 10: SHOWING THE IMPORTANCE OF HDFC BANK SERVICE ACCORDING

TO CUSTOMRES
VARAIBLES

RESPONDENTS

PERCENTAGE

EXCEPTIONALY SATISFIED

54

54%

SATISFIED

40

40%

NEUTRAL

6%

ANALYSIS

The above table shows that out of 100 respondents 54% are exceptionaly satisfied with
the Service of the HDFC Bank, 40% of them are satisfied and 6% are neutral.

INFERENCE
In todays world Bank Service is one of the most important criteria as it helps the
organization to retain their or add market share . Therefore , HDFC should work towards
the 6% neutral
customer friendly

customers either by training the employees or making the procedure

4.5 SUMMARY OF FINDINGS

Most of the customers of the bank are satisfied, but there is a minority of customers who
are still looking for improvement in this aspect of service area as well in the field of
working environment.
One area of strength of the bank which it can really boast off as most of the customers are
satisfied when it comes to customer care.

 Overall the result of survey has shown a positive sign for the overall services
from where on they can increase their customer base with the exception of a few
dissatisfied customers which needs to be looked after.
The bank has caused a lot of inconvenience to the customers regarding its
banking hours as shown from the

result of the survey. Flexible banking hours

should be achieved to attain higher customer satisfaction again lot of them are
even satisfied .
There is a mixed response when it comes to transaction time. A certain section or
respondents seem to be satisfied but a substantial number of customers are looking for
faster transaction time.

V.1

SUMMARY OF LEARNIG EXPERIENCE.

I went through a good learning practice in my HDFC Bank for the past eight months which has
developed me to heights of understanding the customers mind as well their taste and preferences
in the field of services sector.
The uncertain world or market structure existing in India has very typical way of expectation
when it comes to private bank and the banks have realized their needs and desires and working
towards satisfying their requirements and my bank is also in its run for customer satisfaction
The working environment was excellent which enabled me to learn the products and services
features as well as the internal aspects of management level in my bank.
This project has opened up the new window of learning, which enables me into the clear
understanding of corporate world

The proper understanding of customers is must when it comes to service industry and that
exactly what I went through in this period of management training period.

V.2

CONCLUSIONS AND RECOMMENDATIONS.

CONCLUSION

Hence, I conclude by understanding that marketing concepts is essentially about the few things
which contribute to the banks success:

The bank cannot exist without customer.

The purpose of a bank is to create, win and keep a customer. The customer is and should
be the central focus of everything the bank does.

Ultimate aim of a bank is to deliver satisfaction to the customers.

Customer satisfaction is affected by the performance of all the personnel of the bank.

It is also a way of organizing the bank. The starting point for the organizational design should be
the customer and the bank should ensure that the services are performed and delivered in the
most effective way. Service facility should also be designed for customer convenience.

RECOMMENDATIONS

The environment of the bank can be made more customers friendly and the working of the bank
should be more organized and efficient by training the employees of the bank.
2. Improving customer care facilities by providing 24 hours banking facilities more effective.
3. More number of CURRENT ACCOUNTS With different features are looked forward from
public.
4. Proper and general insturuction about the maintenance and working of current account and its
benefits should be made clearer.
5. The banking hours should be more customers friendly it should close little later in the evening.
6. The banking process needs to be more systematic so that the transaction time can be reduced.

7. There should be more branches especially in smaller towns and cities .

8. Special schemes should be provided for smaller retail shops as well new package of offers
and discounts should be provided for high network people and senior citizens .

BIBLIOGRAPHY

BOOKS AND MAGAZINES

1) Tull S. Donald et al Hawkins I. Del --Marketing Research Measurement & Methods 6th
edition
Published by Asoke K. Ghosh , Prentice-Hall of India pvt. Ltd.
2) Cooper R. Donald et al Schindler S.Pamela Business Research Method logy 2006 edition
Published by TATA McGraw HILL Publishing Company limited

India Today

Business world, Economic Times, Business world , Money regulator and Business Line

NEWSPAPERS
The Times of India
The Economic Times
Business Standard

INTERNET
www.hdfcbank.com
www.google.com