CHAPTER 1 INDUSTRY PROFILE
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1.1INTRODUCTION 1.1INTRODUCTION TO INDIAN BANKING SYSTEM
HISTORY OF BANKING IN INDIA Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors. For the past three decades India's India's banking system system has several outstanding outstanding achievements achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reasons of India's growth process. The government's regular policy for Indian bank since 1969 has paid rich dividends with the nationalization of 14 major private banks of India. Long time ago; an account holder had to wait for hours at the bank counters for getting a draft or for withdrawing his own money. Today, he has a choice. Gone are days when the most efficient bank transferred money from one branch to other in two days. Now it is simple as inst instan antt mess messag agin ing g or dial dialss a pizza pizza.. Mo Money ney has has beco become me the the order order of the the day. day. The first bank in India, though conservative, was established in 1786. From 1786 till today, the journey of Indian Banking System can be segregated into three distinct phases. They are as mentioned below: •
•
Early phase from 1786 to 1969 of Indian Banks Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms.
•
New phase of Indian Banking System with the advent of Indian Financial & Banking Sector Reforms after 1991.
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PHASE I The General Bank of India was set up in the year 1786. Next come Bank of Hindustan and Bengal Bank. The East India Company establishe established d Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks, mostly Europeans shareholders. In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canera Bank, Indian. Bank, and Bank of Mysore were set up. Reserve Bank of India came in 1935During the first first phase phase the growth growth was very very slow slow and banks banks also also experi experienc enced ed period periodic ic failur failures es between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the functioning and activities of commercial banks, the Government of India came up with The Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested with extensive extensive powers for the supervision supervision of banking banking in India .During .During thos thosee day’ day’ss pub publi licc has has less lesser er conf confid idenc encee in the the banks banks.. As an afte afterm rmat ath h depos deposit it mobilization was slow. Abreast of it the savings bank facility provided by the Postal department was comparatively safer. Moreover, funds were largely given to traders.
Phase II Government took major steps in this Indian Banking Sector Reform after independence. In 1955, it nationalized Imperial Bank of India with extensive banking facilities on a large scale especially in rural and semi-urban areas. It formed State Bank of India to act as the principal agent of RBI and to handle banking transactions of the Union and State Governments Governments all over the country country .Seven banks forming forming subsidiary subsidiary of State Bank of India was nationalized in 1960 on 19th July, 1969, major process of nationalization was carried out. It was the effort of the then Prime Minister of India, Mrs. India Gandhi major commer commercia ciall banks banks in the country country were were nation nationali alized zed Second Second phase phase of nation nationali alizat zation ion Indian Banking Sector Reform was carried out in 1980 with seven more banks. This step
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brought 80% of the banking segment in India under Government ownership. The following are the steps taken by the Government of India to Regulate Banking: •
1949: Enactment of Banking Regulation Act.
•
1955: Nationalization of State Bank of India.
•
1959: Nationalization of SBI subsidiaries.
•
1961: Insurance cover extended to deposits.
•
1969: Nationalization of 14 major banks.
•
1971: Creation of credit guarantee corporation.
•
1975: Creation of regional rural banks.
•
1980: Nationalization of seven banks with deposits over 200 cores.
After the nationalization of banks, the branches of the public sector bank India rose to appr approx oxim imat atel ely y 800% 800% in depo deposi sits ts and and adva advanc nces es took took a huge huge jump jump by 11,0 11,000 00%. %. Banking in the sunshine of Government ownership gave the public implicit faith and immense
confidence
about
t he
sustainability
of
these
institutions.
PHASE III This phase has introduced many more products and facilities in the banking sector in its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his name which worked for the liberalizations of banking practices. The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking ba nking and net banking is introduced. The entire system became more more convenient and swift. Time is is given more . Importance than money the financial system of India has shown a great deal of resilience. It is sheltered from any crisis triggered by any external macroecono mics shock as other East Asian Countries suffered. This is all due to a flexible exch ange rate regime, the foreign reserves are high, the capital account is not yet fully convertible, and banks
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1.2 Banking system in India The Indian banking can be broadly categorized into nationalized (government owned), private banks and specialized banking institutions. The Reserve Bank of India acts a centralized body monitoring any discrepancies and shortcoming in the system. Since the nationalization of banks in 1969, the public public sector banks or the nationalized nationalized banks have acquired a place of prominence and has since then seen tremendous progress. The need to become highly customer focused has forced the slow-moving public sector banks to adopt a fast track approach. The unleashing of products and services through the net has galvanized players at all levels of the banking and financial institutions market grid to look anew at their existing portfolio offering. Conservative banking practices allowed Indian banks to be insulated partially from the Asian currency crisis. Indian banks are now quoting al higher valuation when compared to banks in other Asian countries (viz. Hong Kong, Singapore, Philippines etc.) that have major problems linked to huge Non Performing Assets (NPAs) and payment defaults. Co-operative banks are nimble footed in approach and armed with efficient branch networks focus primarily on the ‘high reve revenu nue’ e’ nich nichee reta retail il segm segment ents. s. Th Thee Indi Indian an banki banking ng has has fina finall lly y work worked ed up to the the competitive dynamics of the ‘new’ Indian market and is addressing the relevant issues to take on the multifarious challenges of globalization. Banks that employ IT solutions are perceived to be ‘futuristic’ and proactive players capable of meeting the multifarious requirements of the large customer’s base. Private Banks have been fast on the uptake and are reorienting their strategies using the internet as a medium The Internet has emerged as the new and challenging frontier of marketing with the conventional physical world tenets being just as applicable like in any other marketing medium. The Indian banking has come from a long way from being a sleepy business institution to a highly proactive and dynamic entity. This transformation has been largely brought about by the large dose of liberalization and economic reforms that allowed banks to explore new business opportunities rather than generating revenues from conventional streams (i.e. borrowing and lending). The banking in India is highly fragmented with 30 banking units contributing to almost 50% of deposits and 60% of advances. Indian nationalized banks (banks owned by the government) continue to be b e the major lenders in the economy due to their their sheer sheer size size and penetr penetrati ative ve networ networks ks which which assure assuress them them high high deposit deposit 5
mobilizati mobilization. on. The Indian banking can be broadly broadly categorized categorized into nationalized, nationalized, private specialized banking institutions The Reserve Bank of India act as a centralized body monito mon itorin ring g any discrep discrepanc ancies ies and shortcom shortcoming ing in the system. system.
It is the foremos foremostt
monitoring body in the Indian financial financial sector. The nationalized banks (i.e. governmentowned banks) continue to dominate the the Indian banking arena. Industry estimates estimates indicate that out of 274 commercial banks operating in India, 223 banks are in the public sector and 51 are in the private sector. sector. The private private sector bank grid grid also includes includes 24 foreign banks that have hav e started their operations op erations here. Under the ambit of the nationalized banks bank s come the specialized specialized banking instituti institutions. ons. These co-operati co-operatives, ves, rural banks focus on areas of agriculture, rural development etc., unlike commercial banks these co-operative banks do not no t lend on the basis b asis of a prime lending rate. They also have various tax sops because of their holding pattern and lending structure and hence have lower overheads. This enables them to to give a marginally marginally higher percentage on savings deposits. Many of these cooperative banks diversified into specialized areas (catering to the vast retail audience) audience) like car finance, housing housing loans, truck truck finance etc. in order to keep pace with their public sector and private counterparts, the co-operative banks too have invested heavily in information technology to offer high-end computerized banking services
TYPES OF BANKS CentralBank The Reserve Bank of India is the central Bank that is fully owned by the Government. It is gov gover erned ned by a cent centra rall board board (hea (heade ded d by a Gove Govern rnor or)) appoi appoint nted ed by the the Cent Centra rall Government. It issues guidelines for the functioning of all banks operating within the country. CO-OPERATIVESECTOR::---
The co-operative sector is very much useful for rural people. The co-operative banking sector is divided into the following categories. a. Stat Statee coco-op oper erat ativ ivee Bank Bankss b. Central co-operative banks c. Primar Primary y Agricu Agricult lture ure Cred Credit it Soci Societi eties es 6
Development Banks/Financial Institutions •
IFCI
•
IDBI
•
ICICI
•
IIBI
•
SCICI Ltd.
•
•
•
•
•
NABARD Export-Import Bank of India National Housing Bank Small Industries Development Bank of India North Eastern Development Finance Corporation
1.3PRIVATE SECTOR BANKS Private Sector Banks 1. HDFC Bank 2. ICICI Ba Bank 3.
Fede ederal Ba Bank
4.
ING ING Vi Visas sas Ban Bank k
5.
Axis Axis Bank Bank (fo (form rmer erly ly UTI UTI Ban Bank) k)
6.
Yes Bank
7.
Bank Bank of Raja Rajast stha han n
8. Bhar Bharat at Over Overse seas as Bank Bank 9.
Cath Cathol olic ic Syr Syria ian n Bank Bank
10. Centurion Centurion Bank of Punjab Punjab 7
11. City Union Bank 12. Development Development Credit Credit Bank Bank 13. Dhanalakshmi Dhanalakshmi Bank 14. Ganesh Bank of Kurundw Kurundwad ad 15. IndusI IndusInd nd Bank Bank 16. Jammu & Kashmir Kashmir Bank 17. Karnataka Karnataka Bank Limit Limited ed 18. Karur Vysya Bank 19. Kotak Mahindr Mahindraa Bank 20. Lakshmi Lakshmi Vilas Vilas Bank 21. Nainit Nainital al Bank 22. Ratnaka Ratnakarr Bank 23. SBI Commercial Commercial and International International Bank 24. South Indian Bank 25. Amazing Amazing Mercantil Mercantilee Bank 26. Punjab National National Bank Bank 27. Rupee Rupee Bank Bank 28. Sarasw Saraswat at Bank 29. Tamilnad Tamilnad Mercantile Mercantile Bank Bank 30. Thane Janata Janata Sahakari Sahakari Bank Bank 31. Bassein Bassein Catholic Catholic Bank Bank
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MAJOR PLAYERS IN PRIVATE SECTOR BANKS ICICI Bank: ----ICICI Banking is commercial Banking arm of ICICI group. It received its banking license from RBI on May 17 may 1994 and its branch was started in Madras in June 1994. ICICI Bank has a network of about 560 branches and extension counters and over 1,900 ATMs. ICICI Bank offers a wide range of banking banking products products and financial financial services services to corporate and retail customers through wide variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI Bank set up its international banking group in fiscal 2002 to cater to cross border needs of clients and leverage on its domestic banking strengths to offer product internationally. ICICI Bank’s equity shares are listed in India on the Stock Exchange, Mumbai and the National Stock Exchange of India Limited and its American Depositary Receipts are listed on New York Stock Exchange. It is the first bank to start Internet banking service in India. In 1999, ICICI become the first Indian Company and the first bank or financial institution from non-Japan Asia to be listed on NYSE operations UTI Bank: - UTI Bank was the first of the new private banks to have begun operations in 1994, after the government of India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of the specified undertaking of the United Trust of India(UTI-I), Life Insurance Corporation of India(LIC) and General Insurance Corporation Ltd. and its associates viz. National Insurance Company Ltd., The New India Assurance Corporation, The Oriental Insurance Corporation and United Insurance Company Ltd. The bank today is capitalized to the extent of Rs.278.12 cores with public holding at 56.18 %. The bank’s registered office is at Ahmadabad and its central office is at Mumbai. The bank has wide network of more than 350 branch offices and Extension Counters. The Bank has network of over 1657 ATMs providing 24hrs a day banking convenience to its customers. The bank was setup with capital of Rs.115 core, core, with with UTI contrib contributi uting ng Rs.100 Rs.100 core, core, LIC-Rs LIC-Rs.7. .7.5 5 core core and its its four four sub subsid sidiar iaries ies contributing Rs. 1.5 core each.
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headquartered ered in Mumbai Bank at present present has an HDFC Bank :---- HDFC Bank is headquart enviable network of over 495 branches spread spread over 218 cities across India. 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 presen presence ce in all major major indust industri rial al and commer commercia ciall centers centers where where its corporate corporate customers customers are located as well as the need to build a strong retail customer 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 active member base. The authorize authorized d capital capital of HDFC HDFC Bank is Rs.450 Rs.450 core (Rs.4.5 (Rs.4.5 billion). The paid-up capital is Rs.309.9 core (Rs.3.09 billion). The HDFC Group holds 22.2% of the bank’s equity and about 19.5% of the equity is held by the ADS Depository. The Bank has made substantial substantial efforts efforts and investments investments in acquiring the best technology technology available internationally, to build the infrastructure for a world class bank.
1.4 PUBLIC SECTOR BANKS a. State Bank Bank of India India and its associa associate te banks called called the the State State Bank Group Group b. 20 nationalized banks c. Regional Regional rural rural banks banks mainly mainly sponsored sponsored by public public sector sector banks
PUBLIC SECTOR BANKS (NATIONALIZED BANKS): 1. State Bank of India (SBI) 2.State Bank of Bikaner & Jaipur 3.State Bank of Hyderabad 4.State Bank of Indore 5.State Bank of Mysore 6.State Bank of Patiala 7.State Bank of Saurashtra 8. State Bank of Travancore 9. Bank of India 10. Canara Bank 11. Central Central Bank of India 10
12. Corporation bank 13. Indian Bank 14. Indian overseas bank 15.Syndicate Bank 16.UCO Bank 17. Allahabad Bank 18.Andhra Bank 19.Bank of Baroda 20. Bank of Maharashtra 21. Dena Bank 22.Oriental Bank of Commerce 23. Punjab & Sind Bank 24. Union Bank of India
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CHAPTER 2 COMPANY PROFILE
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2.1EVOLUTION OF SBI The origin origin of the State State Bank of India goes back to the first first decade decade of the ninete nineteent enth h century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806.Three years later the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). A unique institution, it was the first joint-stock bank of British India sponsored by the Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. These three banks remained at the apex of modern banking in India till their amalgamation as the Imperial Bank of India on 27 January January 1921. Primarily Primarily Anglo-India Anglo-Indian n creations, creations, the three presidency presidency banks came into existence either as a result of the compulsions of imperial finance or by the felt needs of local European commerce and were not imposed from outside in an arbitrary manner to modernize India's economy. Their evolution was, however, shaped by ideas culled from similar developments in Europe and England, and was influenced by changes occurring in the structure of both the local trading environment and those in the relations of the Indian economy to the economy of Europe and the global economic framework.
The eight banking subsidiaries are: 1-State Bank of Bikaner and Jaipur (SBBJ) 2-State Bank of Hyderabad (SBH) 3-State Bank of India (SBI) 4-State Bank of Indore (SBIR) 5-State Bank of Mysore (SBM) 6-State Bank of Patiala (SBP) 7-State Bank of Saurashtra (SBS) 8-State Bank of Travancore (SBT)
2.2 PRODUCTS AND SERVICES PROVIDED BY SBI • • •
Savings Accounts Current Accounts Fixed Deposit 13
LOANS • • • • • • • • • • • •
Personal Loans Home Loans Two Wheeler Loans New Car Loans Used Car Loans Overdraft against Car Express Loans Gold Loan Educational Loan Loan against Securities Loan against Property Loans against Rental Receivables
CARDS • •
Credit Cards Debit Cards
ACCESS YOUR BANK •
•
Net Banking ATM
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2.3 SWOT ANALYSIS: STRENGTHS: 1. Brand Name : SBI Bank has earned a reputation in the market over the period
of time (Being the oldest bank in India tracing history back to 1806) 2. Market Leader : SBI is ranked at 380 in 2008 Fortune Global 500 list, and
ranked 219 in 2008 Forbes Global 2000. With an asset base of $126 billion and its reach, it is a regional banking behemoth. 3. Wide Distribution Network : Excellent penetration in the country with more
than than 100 10000 00 core core branch branches es and more than than 5100 branches branches of associ associate ate banks banks (subsidiaries). 4. Diversified Portfolio : SBI Bank has all the products under its belt, which help
it to extend the relationship with existing customer. SBI Bank has umbrella of products to offer their customers, if once customer has relationship with the bank. Some Products, which SBI Bank is offering are: Retail Banking Business Banking Merchant Establishment Services (EDC Machine) Personal loans & Car loans Insurance Housing Loans Government Owned: Government owns 60% stake in SBI. This gives SBI an edge over private banks in terms of customer security. w hich attracts small 5. Low Transition Costs -SBI offers very low transition costs which customers.
WEAKNESSES: 1. The existing hierarchical management structure of the bank, although strength in some respects, is a barrier to change. 2.Though SBI cards are the 2nd largest player in the credit card industry, it has the highest no performing assets (NPAs) in the industry, which stand out to be at 16.28 % (Dec 2007). 3. Modernisation : SBI lags with respect to private players in terms of modernisation of its processes, infrastructure, centralisation, etc.
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OPPORTUNITIES: 1. Merger of associate banks with SBI: Merger of all the associate banks (like
SBH, SBM, etc) into SBI will create a mega bank which streamlines operations and unlocks value. 2. Planning to add 2000 branches and 3000 ATMs in 2008-2009. This will further increase its reach. 3. Increasing trade and business relations and a large number of expatriate populations offers a great opportunity to expand on foreign soil.
THREATS: 1. Advent of MNC banks : Large numbers of MNC banks are mushrooming in
the Indian market due to the friendly policies adopted by the government. This can increase the level of competition and prove a potential threat for the market share of SBI bank. 2. Consumer expectations have increased many folds in last few years and the bank has not been responsive enough to meet them on time. 3. Private Banks have started venturing into the rural and semi-urban sector, which used to be the bastion of the State Bank and other PSU banks 4. Employee Employee Strike: There was an employee strike in the year 2006 which disrupted SBI’s activities. This can be repeated in the future.
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2.4 OVERVIEW OF HDFC BANK HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian Bank". They realized that only a single-minded focus on product quality and service excellence would help them to get there. HDFC Bank, one amongst the firsts of the new generation, tech-savvy commercial banks of India, was set up in august 1995 after the Reserve Bank of India allowed setting up of Banks in the private sector. The Bank was promoted by the Housing Development Finance Corporation Limited, a premier housing finance company (set up in 1977) of India. Net Profit for the year ended March 31, 2006 was up 30.8% to Rs 870.8 cores. Currently (2007), HDFC Bank has 583 branches located in 263 cities of India, and all branches of the bank are linked on an online real-time basis. The bank offers many innovative products & services to individuals, corporate, trusts, governments, governments, partnershi partnerships, ps, financial financial institut institutions, ions, mutual mutual funds, funds, insurance insurance companies. companies. Bank also has over 1471 ATMs. In the next few months the number of branches and ATMs ATMs sho should uld go up sub substa stanti ntiall ally. y. The Housin Housing g Develo Developme pment nt Finance Finance Corpor Corporati ation on 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. India. HDFC Bank commenced operations operations as a Scheduled Commercial Commercial Bank in January 1995.HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services for target retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent with the bank's risk appetite. The bank is committed to maintain the professional integrity, corporate governance and regulatory compliance. HDFC Bank's business philosophy is based on four core values Operational Exce Ex cell llen ence ce,,
Cust Custom omer er Focu Focus, s, Prod Produc uctt
Lead Leader ersh ship ip and and
Peop People le..
Thee Housing Th
Development 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. Incorp Incorpora orated ted in August August 1994 as HDFC Decemb mber er 31, 200 2006. 6. HDFC Bank Limited Limited,, as of Dece
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ACTIVITIES HDFC Bank mainly provides three kinds of banking services: a. Per Persona sonall Bank Bankiing b. NRI Banking c. Whol Wholes esal alee Bank Bankin ing g The following are the products and services provided by the HDFC bank •
HDFC Bank provides Bank provides loans like Personal Loans , Home Home Lo Loan anss , Ed Educ ucat atio iona nall Loans , Two Wheeler Loans , New car Loans, Used Car Loans, Overdraft Against Car, Express Loans, etc.
•
HDFC Bank provides Bank provides Credit, Debit and Prepaid Cards to help you meet your financial objectives.
•
HDFC Bank provides provides facilities like Mutual Funds, Insurance , General & Health Insu Insurrance ance,, Bond Bondss , Fina Financ nciial Plan Planni ning ng,, Know Knowlledge edge Cent Center er,, Eq Equi uitties ies & Derivatives, Mudra Gold bar.
If you need to deal in foreign currency and keep tabs on exchange rates every now and then, transfer funds to India, make payments etc., HDFC Bank has Bank has a range of products and services that you can choose from to transact smoothly, efficiently and in a timely manner. HDFC Bank has Bank has designed two programs to make banking easier for the customers and they are •
HDFC Bank Preferred Bank Preferred Programme
•
HDFC Bank Classic Bank Classic Programme.
•
HDFC Bank offers Private Banking services to high net worth individuals and institutions.
•
HDFC Bank offers Bank offers you quick, economical and convenient options to remit and transfer funds to India.
•
Corporate Corporate Banking reflects reflects HDFC Bank ’s strengths in providing our corporate clients in India, a wide array of commercial, transactional and electronic banking products.
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•
HDFC Bank acts Bank acts as an active medium between the government and the customers by means of various services.
Distribution network HDFC Bank is headquartered 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 online real-t real-time ime basis. basis. Custom Customers ers in over over 120 locati locations ons are also also servic serviced ed through 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/s clearing/settlem ettlement ent bank to various leading stock exchanges, exchanges, the Bank has branches in the centers where the NSE/BSE have a strong and active member member base. The Bank also has a network of about over 1,740 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.HDFC Bank operates in a highly automated environment in terms of information technology and communication systems. All the bank's branches have online connectivity, which enables the bank to offer speedy funds transfer facilities to its customers. Multi-branch access is also provided to retail customers through the branch network and Automated Teller Machines. The Bank has made substantial efforts and investments in acquiring the best technology available internationally, to build the infras infrastru tructu cture re for a world world class class bank. bank. In terms terms of softwa software, re, the Corpor Corporate ate Bankin Banking g business is supported by Flex cube, while the Retail Banking business by Fin ware, both from I-flex Solutions Ltd. The systems are open, scalable and web-enabled. The Bank has prioritized its engagement in technology and the internet as one of its key goals and has already made significant progress in web-enabling its core businesses. In each of its businesses, the Bank has succeeded in leveraging its market position, expertise and technology to create a competitive advantage and build market share.
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2.5PRODUCTS AND SERVICES PROVIDED BY HDFC BANK SAVINGS ACCOUNTS
Regular Savings Account
Savings Plus Account
Savings Max Account
No Frills Account
Retail Trust Account
Salary Accounts
Payroll
Classic
Regular
Premium
Defense Salary Account
Kid's Advantage Account
Pension Saving Bank Account
Family Savings Group
CURRENT ACCOUNTS
Plus Current Account
Trade Current Account
Premium Current Account
Regular Current Account
Reimbursement Current Account
RFC - Domestic Account
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FIXED DEPOSITS
Regular Fixed Deposit
Super Saver Account
Sweep-in Account
LOANS
Personal Loans
Home Loans
Two Wheeler Loans
New Car Loans
Used Car Loans
Overdraft Against Car
Express Loans
Gold Loan
Educational Loan
Loan Against Securities
CARDS
Credit Cards
Silver Credit Card
Gold Credit Card
Platinum Plus Credit Card
Debit Cards
Easy Shop International Debit Card
Easy Shop Gold Debit Card
Easy Shop International Business Debit Card
ACCESS YOUR BANK
Net Banking
Mobile Banking
ATM
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Phone Banking
2.6 SWOT ANALYSIS STRENGTHS: 1. 2. 3. 4. 5. 6. 7. 8.
Rightt st Righ strat ateg egy y for for th thee rig right ht pr prod oduc uctts. Superior customer Superior customer service vs. competitors. Great Brand Image. Prod Pr oduc uctts hav havee requ requiire red d accr accred ediita tati tion on.. High Hi gh de degr gree ee of cu cust stom omer er sa sattis isfa fact ctiion on.. Good place to work Lower Lo wer re resp spons onsee tim timee wit with h eff effic icie ient nt an and d eff effec ecti tive ve ser servi vice ce.. Dedic Ded icat ated ed wor workf kfor orce ce aim aimin ing g at mak makin ing g a longlong-te term rm car caree eerr in the the fie field ld.. WEAKNESS: – 1. 2. 3. 4. 5.
Some gap Som gapss in in ran range ge fo forr cer certtai ain n sec secto torrs. Cusstom Cu omer er ser servi vice ce st staf afff nee needs ds tr trai aini ning ng.. Processes and sy systems, et etc Mana nag gemen entt co cover in insufficient. Sector Sect or gro growth wth is cons constra traine ined d by by low low une unempl mploym oyment ent lev levels els and com compet petiti ition on for staff OPPORTUNITIES: – 1. Profit ma margins wi will be be go good. 2. Cou oulld ex extend to to ov overseas br broadly. 3. New spec eciialist app ppllica cattions. 4. Cou oulld se seek be better cus custtomer de deals. 5. FastFas t-tr trac ack k caree careerr devel develop opme ment nt oppor opportu tuni niti ties es on an indu indust stry ry-w -wid idee basis basis.. 6. An appl applied ied res resear earch ch cent center er to to crea create te oppor opportun tuniti ities es for dev develo elopin ping g tech techniq niques ues to provide added-value services.
THREATS: 1. 2.
Legislation co could im impact. Great risk involved 22
3. 4. 5. 6.
Very hi Very high gh com compe peti titi tion on pre preva vail ilin ing g in in the the ind indus ustr try. y. Vuln Vu lner erab able le to to reac reacti tive ve att attac ack k by maj major or com compe peti tito tors rs.. Lack La ck of in infr fras astr truc uctu ture re in in rura rurall area areass coul could d cons constr trai ain n inve invest stme ment nt.. High Hi gh vol volum ume/ e/lo low w cos costt mar marke kett is is int inten ense sely ly co comp mpet etit itiv ive. e.
2.7 LITERATURE REVIEW 1. Denise K. Conroy :- In his study titled (Customer satisfaction measures in the public
sect sector or:: what what do they they tell tell us?) attempt attemptss to devise devise custom customer er satisf satisfact action ion measur measures, es, according to him there are a number of factors which can affect the interpretation of results - the nature of the customer, service provision, service quality and, for the public sector, the extent to which consumer sovereignty exists. Resources may be better directed towards setting and maintaining high levels of standard of service. This study addresses the difficulties and highlights the complex nature of a customer or service beneficiary who can be, at the same time, a taxpayer, voter, recipient of financial benefits, with expecta expectatio tions ns of the public public sector sector and its delivery delivery agent, agent, yet cannot cannot choose choose another another provider. 2. Harry Nowka, Southwestern Oklahoma State University, Nancy Buddy, Southwestern
Oklahoma State University Robert Reeder, Southwestern Oklahoma S tate University and Daniel Hart, Southwestern Oklahoma State University in their study titled (Customer Responses: A Comparative Study) wants to determine various variables which influence customers of a bar and grill. This comparative analysis includes customer responses with compar compariso isons ns made made to the major major compet competito itor's r's custom customer er respon responses ses,, student student custom customer er responses, and responses of a panel of non customers assembled to assess potential customer responses. This study indicates that location can be a significant deterrent to expansion of the customer base. The personality of the owner can have a positive impact on custom customer er flow. flow. Analys Analysis is of spendi spending ng patter patterns ns indica indicates tes that that food food and pool were underutilized. The male/female ratio was a determinate of cu stomer flow. 3. Dawn Iacobucci, Amy Ostrom, Kent Grayson:- In their study titled ( Distinguishing Service Quality and Customer Satisfaction: The Voice of the Consumer ) presents
23
two studies that rely on divergent methodologies to examine whether or not quality and satisfaction have distinct antecedent causes, consequential effects, or both (i.e., whether or not they should be considered a single construct, or distinct, separable constructs). They focus on consumers’ understanding and use of the words quality and satisfaction; in both studies, respondents report whether or not they think quality and satisfaction differ, and if so, on what dimensions or under what circumstances. In the first study, they use the qualitative “critical incident” technique to elicit service attributes that are salient to respondents when prompted to consider quality and satisfaction as distinct. The code the responses to these open-ended survey questions to examine whether quality can be teased apart from satisfaction, from the respondents’ (consumers’) perspective. In the second study, to triangulate on the qualitative data, they experimentally manipulated a number of service attributes drawn from both the first study and from the literature to see whether or not they have differential impacts on judgments of quality and satisfaction. They did not presuppose that quality and satisfaction differ—rather, they asked respondents to make a judgment either of quality or of satisfaction, defining the term as they they saw fit. 4. Entrees D. Athanassopoulos:- In this study titled (Customer Satisfaction Cues To examined d the Support Sup port Market Market Segmenta Segmentation tion and Explain Explain Switchi Switching ng Beh Behavio avior) r) examine customer satisfaction cues in retail banking services in Greece. The study proposes an instrument of customer satisfaction that contains service quality and such other attributes as price, convenience, and innovation. The proposed framework of customer satisfaction was verified empirically yielding four distinct facets for business customers and five for indivi individua duall custom customers ers.. The perfor performan mance ce implic implicati ations ons of the custom customer er satisf satisfact action ion instrument are also explored. What is shown is that customer segments, in fact, yield statistically different satisfaction scores, which verifies the managerial value of customer segmentation practices. Finally, the facets of customer satisfaction as explanatory cues for the switching behavior of individual and business customers were tested successfully.
5. Reng Rengas asam amy y Elan Elango go and and Vija Vijaya ya Ku Kuma marr Gu Guid ide: e:--
In thei theirr stud study y titled(A
Comp Compara arativ tivee Stu Study dy on the Serv Service ice Qu Quali ality ty and Custo Custome merr Satisf Satisfac actio tion n amon among g
focusess on the servic servicee qualit quality y and custom customer er Private Private,, Public Public and Foreig Foreign n Banks) Banks) focuse satisfaction among the private, public and foreign banks in India. An analysis is carried 24
out to examine the level of awareness among customers and to identify the best sector which provides qualitative customer service. This becomes relevant in the context of recommendations of various committees constituted by the Government of India and the RBI, from time to time, to suggest measures to improve customer service systems of the public sector commercial banks of India. A well-structured questionnaire is used to collect the views of respondents across the three banking sectors. The survey instrument includes various dimensions, pertaining to the quality of customer services in terms of banking personnel, convenient working hours, Web-based services, error free valueadded services and efficient grievance redressed mechanism etc. Apart from the basic statistical tools such as measures of central tendency, authors also use `factor analysis' and the `One-way ANOVAs' classification. The idea behind this is to extract the relevant factors and analyze whether there is any significant difference with respect to service quality within the three banking sectors. The results indicate that the level of awareness among the customers customers improved significantly significantly during the study period. It is interesting interesting to note that the results are consistent with the previous studies conducted on customer service aspects, and it has been observed that the foreign and the new generation private sector banks are serving the customers better. This has larger implications on the public sector commercial banks in India with respect to customer service delivery aspects. It is high time the public sector commercial banks made efforts to revamp their approach towards customers, so as to perform better and derive competitive advantage in the long run.
25
CHAPTER3 RESEARCH METHODOLOGY
26
3.1 RESEARCH METHODOLOGY It describes the data collection method, the sampling plan, the tools of investigation, planning and testing of questionnaire and the limitations of the study. The study requires the data to be collected from two different sources i.e. the primary source and the secondary source. The primary data is collected with the help of structured questioners which is being modified & reliable reliable and the secondary secondary data through the various journals, journals, newspapers and websites
3.2OBJECTIVES OF THE STUDY 1. To study study the prefere preference nce of custome customers rs regardin regarding g SBI bank and HDFC HDFC bank. 2. To analyze analyze which facili facility ty influences influences the the customer customer most while while selecti selecting ng a Bank. 3. To compare compare the the various various services services provided provided by these these banks. banks. 4. To make aware about the various services provided provided by the banks. 5. To know the which type of facilities preferred by customers
DATA SOURCE: (a) Primary Data:- Primary data was collected by means of questionnaires
Secondary data: - Secon Seconda dary ry data data coll collect ected ed by refe referr rrin ing g to vario various us boo books ks,, (b) Secondary newspapers, magazines, journals and internet (details in bibliography)
RESEARCH DESIGN:--
27
Present study enquired and brought forward the results concerning the set objectives specified before which relates to description of the state of affairs as a result it clearly states that it was a DESCRIPTIVE STUDY, which included fact finding enquiries of different kinds.
SAMPLING DESIGN Universe: - The universe was infinite in this study, since the population of Chandigarh City is uncertain.
Sampling Unit: - The sampling unit is an individual (non-staff member) who is having account in SBI and HDFC Banks.
Sample Size: - The sample size for the study was 70 individuals, non-staff members of SBI and HDFC Banks, Chandigarh Out of which 35 belongs to SBI and 35 belongs to HDFC bank.
Sampling Procedure: - Due to the time and resource constraints the convenience sampling technique was used. The individuals were selected according to convenience to fill the questionnaires.
Research Instrument used:: --- Questionnaires. 3.3 LIMITATIONS
1. Som Someti etimes mes res respond ponden ents ts did did not not res respond pond well well to all all the the ques questtions ions in the questionnaire. 2. Low coopera cooperatio tion n from the bank executi executives ves make to struggl strugglee more, due to which we were forced to restrict our sample size to 70. 3. Some Some bias biasne nesss migh mightt have have occu occurr rred ed in anal analys ysis is.. Beca Becaus usee of lack lack of expe expert rt knowledge.
28
4. Best efforts efforts were were made to incorporat incorporatee all-importa all-important nt variables variables in study, study, yet chances of some of variables not appearing in study are not ruled out. 5. Frequen Frequentt developm development entss in this sector sector can be a major major reason reason of limitat limitation ion in the study 6. Biasness Biasness in in views views of respondents respondents can’t be ruled ruled out 7. Resistance Resistance to change change sometim sometimes es affects affects view view of respondents respondents..
CHAPTER 4 DATA ANALYSIS & INTERPRETATION
29
4.1 DATA ANALYSIS OF SBI Sample Size 35 WITH SBI1. AGE GROUP AND DISTRIBUTION OF MALE AND FEMALE CUSTOMERSDEALING
(a) AGE AGE GROU GROUP P
AGE LESS THAN 25 25-35 35-45 45-55 55 & ABOVE
NO. OF PERSONS 5 8 6 12 4
30
NO. OFPERSONS
INTERPRETATION:According to survey, 5 persons is less than 25 years,8 persons is 25-35 years, 6 persons 35-45,12 persons 45-55 and the only 4 person 55 & above dealing with SBI bank. In a 45-55 age group more persons dealing with SBI bank.
(b)
GENDER NO. OF
GENDER
PERSONS
MALE
28
FEMALE
7
31
INTERPRETATION:-
According to survey, 28 male and only 7 female customers dealing with with SBI bank. Female customer very less compare to male customers.
2. OCCUPATION OF THE CUSTOMERS OF SBI
OCCUPATION SERVICEMEN BUSINESMEN PROFESSIONALS S T U D E N TS HOUSEWIIVES
NO. OF PERSONS 15 6 3 8 3
32
INTERPRETATION:-
According this to survey the occupation of SBI customer in out of 35, 15 customer in serviceman, 6 customers are businessmen,3 customers are professional,8 customers are student and only 3 customers are housewives.
3. DISTRIBUTION OF THE INCOME OF CUSTOMERS OF OF SBI PER YEAR
INCOME
NO. OF PERSONS 8 5 7 5 6 4
NIL LESS THAN 50000 50000-150000 150000-300000 300000-500000 500000-ABOVE
33
INTERPRETATION:According this survey, the income of SBI S BI customers are 8 customers income less than
50000,7 customers income are 50000-150000,10 customers income are 150000-300000,6 customers income are 300000-500000 and only 4 persons income are above 500000 and above.
4. MOST IMPORTANT REASON FOR CHOOSING SBI
NO. OF FACTORS I have a traditional bank account with the same bank The brand name of the bank The excellent service offered by this bank ATM service Net banking facility Location advantage
34
PERSONS 12 4 5 7 3 4
INTERPRETATION:According this to survey when asked the respondent most important reason for choosing
SBI bank they said 12 persons said traditional bank account with same bank, 4 persons said brand name.5 excellent service offered by bank,7 persons said ATM location, 3 persons said net banking facilities and 4 persons location advantage.
5. ACCOUNT FACILITY AVAILING AVAILING IN THE SBI
FACILITY Savings account Current account Fixed deposit NRI account
NO. OF PERSONS 18 5 12 0
35
INTERPRETATION:According to survey, when I asked the respondent which facility availing in the bank they said 18 persons said saving account,5 persons said current account,12 persons said fixed account.
6.NO. OF YEARS, CUSTOMERS DEALING SBI
NO. OF YEARS Less than 1 year 1 to 2 years 3 to 5 years More than 5 years
PERSONS 7 12 7 9
36
INTERPRETATION:-
According the survey, when asked the respondent, how many years dealing with SBI bank 7 persons said less than 1 year,12 person said 1to 2 years, 7 persons said 3 to 5 years and 9 person said more than 5 years.
7. REASON FOR TYPICALLY VISITING VISITING THE BANK BRANCH BRANCH
NO. OF REASONS To make a deposit To get advice for investment
options To inquire about a balance To withdraw cash
PERSONS 14
2 7 12 37
INTERPRETATION:-
According to survey, when asked the respondent, reason for visiting the branch, they said persons 14 persons said to make a deposit, 2 persons said to get advice for investment, 7 persons said to inquire about a balance and 12 persons said to withdraw cash.
8.WHICH FACILITY SATISFIES YOU MOST FACILITY
NO. OF PERSONS 13 7 2 3 3 3 4
ATM Loan Early cheque clearance Preparation of drafts Interest package Net banking Phone banking
38
INTERPRETATION:-
According the survey, when I asked the customer which facilities satisfied you , 13 persons said ATM,7 person said loan,3 persons said early cheque clearance ,3 persons said preparation of drafts, 3 person said interest package, 3 person said net banking and 4 persons said phone banking.
9.IF YOU ARE PROVIDED WITH BETTER SERVICES BY OPTIONAL BANK. WOULD YOU LIKE TO MOVE TO OTHER BANK
Y ES NO
6 29
39
INTERPRETATION:-
According to survey when I asked the SBI bank customer, if you are provided with better services by optional bank. Would you like to move to other bank in out of 35 , 6 said yes and 29 said no.
10.OVERALL SATISFACTION SATISFACTION OF THE CUSTOMERS WITH THE PERFORMANCE OF SBI
NO. OF SATISFCTION EXCELLENT GOOD SATISFACTORY AVERAGE BELOW AVERAGE
PERSONS 8 6 18 3 0
40
SATISFACTION LEVEL
INTERPRETATION:According to survey, when I asked Of Overall Satisfaction Of The Customers With The
Performance SBI 8 persons said excellent, excellent, 6 persons said good, 18 person said said satisfactory 3 persons said average and no one said below average.
4.2DATA ANALYSIS HDFC BANK SAMPLE SIZE 35 1. AGE GROUP AND DISTRIBUTION DISTRIBUTION OF MALE AND FEMALE CUSTOMERS DEALING WITH HDFC a) Age Group NO. OF AGE LESS THAN 25 25-35 35-45 45-55 55 & ABOVE
PERSONS 4 12 7 9 3
41
INTERPRETATION:According to survey, 4 persons is less than 25 years,12 persons is 25-35 years, 7 persons 35-45,19 persons 45-55 and the only 3 person 55 & above dealing with HDFC bank. In a 45-55 age group more persons dealing with SBI.
B) GENDER
NO. OF GENDER
PERSONS
MALE
27
FEMALE
8
42
INTERPRETATION:According to survey, 8 male and only 27 female customers dealing with SBI bank. Female customer very less compare to male customers.
2. OCCUPATION OF THE CUSTOMERS OF HDFC
NO. OF OCCUPATION SERVICE BUSINESMAN PROFESSIONAL ST U D E N T
PERSONS 12 13 5 3
43
HOUSEWIFE
2
INTERPRETATION:-
According this to survey the occupation of HDFC customer in out of 35, 12 customers in service, 13 customers are businessman,5 customers are professional,3 customers are student and only 2 customers are housewife.
3. DISTRIBUTION OF THE INCOME OF THE CUSTOMERS CUSTOMERS OF HDFC PER YEAR
INCOME
NO. OF PERSONS 0 4 9 8 9 5
NIL LESS THAN 50000 50000-150000 150000-300000 300000-500000 500000-ABOVE
44
INTERPRETATION:-
According this survey, the income of HDFC customers are 4 customers income less than 50000,9 customers income are 50000-150000,8 customers income are 150000-300000,9 customers income are 300000-500000 and only 5 persons income are above 500000 and above.
4. MOST IMPORTANT REASON FOR CHOOSING HDFC FACTORS I have a traditional bank account with the same
bank The brand name of the bank The excellent service offered by this bank ATM service Net banking facility Location advantage
NO. OF PERSONS
3 6 12 5 2 7
45
INTERPRETATION:-
According this to survey when asked the respondent most important reason for choosing HDFC bank they said 3 persons said traditional bank account with same bank, 6 persons said brand name.12 persons excellent service service offered by bank , 5 persons said ATM service, 2 persons said net banking facilities and 7 persons location advantage.
5. ACCOUNT FACILITY FACILITY AVAILING AVAILING IN THE HDFC HDFC
FACILITY Savings account Current account Fixed deposit NRI account
NO. OF PERSONS 21 7 6 1
46
INTERPRETATION:-
According to survey, when I asked the respondent which facility availing in the bank they said 21 persons said saving account,7 persons said current account,6 person said fixed account, only 1 person have NRI account.
6. NO. OF YEARS, CUSTOMERS DEALING WITH HDFC
NO. OF YEARS Less than 1 year 1 to 2 years 3 to 5 years More than 5 years
PERSONS 7 9 13 6
47
INTERPRETATION:-
According the survey, when asked the respondent, how many years dealing with HDFC bank 7 persons said less than 1 year,9 person said 1to 2 years, 13 persons said 3 to 5 years and 6 persons said more than 5 years.
7. REASON FOR TYPICALLY VISITING VISITING THE BANK BRANCH BRANCH NO. OF REASONS To make a deposit To get advice for investment
PERSONS 17
options To inquire about a balance To withdraw cash
3 5 10
48
INTERPRETATION:-
According to survey, when asked the respondent, reason for visiting the branch, they said persons 17 persons said to make a deposit, 3 persons said to get advice for investment, 5 persons said to inquire about a balance and 10 persons said to withdraw cash.
8.WHICH FACILITY SATISFIES YOU MOST
NO. OF FACILITY
PERSONS 10 4 8 2 3 5 3
ATM Loan Early cheque clearance Preparation of drafts Interest package Net banking Phone banking
49
INTERPRETATION:According the survey, when I asked the customer which facilities satisfied you , 10 persons said ATM,4 person said loan,8persons said early cheque clearance ,2persons said preparation of drafts, 3 person said interest package, 5 person said net banking and 3 persons said phone banking
9.IF YOU ARE PROVIDED WITH BETTER SERVICES BY OPTIONAL BANK. WOULD YOU LIKE TO MOVE TO OTHER BANK
Y ES NO
9 26
50
INTERPRETATION: -
According to survey when I asked the HDFC bank customer, if you are provided with better services by optional bank. Would you like to move to other bank in out of 35 , 9 said yes and 26 said no.
10.OVERALL SATISFACTION SATISFACTION OF THE CUSTOMERS WITH THE PERFORMANCE OF HDFC BANK SATISFCTION EXCELLENT GOOD SATISFACTORY AVERAGE BELOW AVERAGE
NO. OF PERSONS 7 12 8 5 3
51
SATISFACTION SATISFACTION LEVEL INTERPRETATION:According to survey, when I asked Of Overall Satisfaction Of The Customers With The Performance HDFC 7 persons said excellent, 12 persons said good, 8person said satisfactory 5 persons said said average and 3 persons said said below av
4.3DATA ANALYSIS COMPARATIVE STUDY OF SBI AND HDFC BANKS Sample Size 70 1. COMPARATIVE STUDY OF AGE GROUP WITH GENDER OF CUSTOMERS LINKING WITH SBI AND HDFC BANK a) AGE GROUP AGE LESS THAN
SBI 5
HDFC 4
52
25 25-35 35-45 45-55 55 & ABOVE
8 6 12 4
12 7 9 3
INTERPRETATION :-
According to survey, when compare to age group of SBI and HDFC bank. In SBI bank the more persons 12 belong to 45-55 and in HDFC bank more 12 person belong to 25-35 years
b) GENDER
GENDER MALE FEMALE
SBI 28 7
HDFC 27 8
53
INTERPRETATION:-
According to survey, when we compare to gender of SBI and HDFC bank, in SBI bank more 28 customers belong to male and 7 female customers but in HDFC 27 customers belong to male and 8 customer belong to female.
2. COMPARATIVE STUDY OF THE CUSTOMERS OF SBI AND HDFC BANK REGARDING THEIR OCCUPATION
OCCUPATION SERVICE
SBI 15
HDFC 12
54
BUSINESMAN PROFESSIONAL ST U D E N T HOUSEWIFE
6 3 8 3
13 5 3 2
INTERPRETATION:-
According to survey when compare to occupation of SBI and HDFC banks. In SBI Bank most of customer occupation is is service but in HDFC bank most of customer’s occupation is businessman.
3. COMPARATIVE STUDY OF THE CUSTOMERS OF SBI AND HDFC BANK REGARDING THEIR INCOME PER YEAR
INCOME
NIL LESS THAN 50000 50000-150000 150000-300000 300000-500000 500000-ABOVE
SBI 0 8 7 10 6 4
HDFC 2 4 9 8 9 3
55
INTERPRETATION:-
According to survey, compare to Income of SBI and HDFC banks. In SBI bank 10 customer income lie 150000-300000 and In HDFC bank 9 customer income between 50000-150000 and 300000-500000.
4. MOST IMPORTAT REASON CHOOSING BANK FACTORS I have a traditional bank account with the same bank The brand name of the bank The excellent service offered by this bank ATM service Net banking facility Location advantage
56
SBI 12 4 5 7 3 4
HDFC 3 6 12 5 2 7
INTERPRETATION:-
According to survey, when I compare to most reason to chosen a particular bank. In SBI most of customer said the reason of chosen to traditional bank account and in HDFC most of the customer said reason to chosen bank for excellent service offered by this bank.
5. COMPARATIVE STUDY OF THE CUSTOMERS OF SBI AND HDFC BANK REGARDING THE ACCOUNT FACILITIES PROVIDED TO THEM
FACILITY Savings account Current account Fixed deposit NRI account
SBI 18 5 12 0
HDFC 21 7 6 1
57
INTERPRETATION:-
According to survey , Comparative Study S tudy Of The Customers Of SBI And HDFC Bank Regarding type of account, most of SBI customers have saving account and HDFC customers have also saving account.
6. COMPARATIVE STUDY OF THE TIME PERIOD OF CUSTOMERS DEALING WITH SBI AND HDFC BANK
YEARS Less than 1 year 1 to 2 years 3 to 5 years More than 5 years
SBI 7 12 7 9
HDFC 7 9 13 6
58
INTERPRETATION:-
According to survey, when I compare to time time period of customers customers dealing with SBI and HDFC bank. IN SBI bank Most of customers dealing with bank 1 to 2 years and IN HDFC bank 3 to 5 years.
7. COMPARITIVE STUDY OF REASON THAT MAKE CUSTOMER TO TYPICALLY VISIT BANK BRANCH
REASONS To make a deposit To get advice for investment options To inquire about a balance To withdraw cash
SBI 14 2 7 12
59
HDFC 17 3 5 10
INTERPRETATION :According to survey, when I compare reason that make customer customer to typically visit bank branch. In SBI bank most of the customer visit the branch to make a deposit and in HDFC bank customer also visit to make a deposit .
8. COMPARITIVE STUDY OF MOST SATISFYING FACILITY OFFERED BY THEM FACILITY
ATM Loan Early cheque clearance Preparation of drafts Interest package Net banking Phone banking
SBI 13 7 2 3 3 3 4
HDFC 10 4 8 2 3 5 3
60
INTERPRETATION:-
According to survey, I compare to most satisfying facility Offered by them. In SBI bank most of the customer satisfied the ATM facilities and Ii HDFC customer also satisfied the ATM facilities.
9. CUSTOMERS WANT TO SHIFT TO ANOTHER BANK IF THEY ARE PROVIDED WITH BETTER SERVICE
CHANGE Y ES NO
SBI 6 29
HDFC 9 26
61
INTERPRETATION: -
According to survey, when I compare c ompare customers want to shift to another bank if they are provided with better service. In SBI bank 6 said yes and 29 said no but in HDFC bank 9 said yes 26 said no.
10. COMPARISON REGARDING THE OVERALL SATISFACTION OF THE CUSTOMERS
SATISFCTION EXCELLENT GOOD SATISFACTORY AVERAGE BELOW AVERAGE
SBI 8 6 18 3 0
HDFC 7 12 8 5 3
62
INTERPRETATION:-
According to survey, when I compare to regarding the overall satisfaction of the customers. In SBI most of customer said customers satisfactory satisfactory and in HDFC bank most of the customers said good.
63
CHAPTER5 CONCLUSION, SUGGESTIONS SUGGESTIONS & RECOMMENDATIONS
CON CO NCLUSI LU SION ON5. 5.1 1 After conducting market research for comparative comparative study of customer’s customer’s satisfacti satisfaction on towards towards HDFC HDFC bank bank and and
state state bank of India India we came to to know different different needs needs of
consumers, consumers, their valuable valuable suggestions, suggestions, and responses responses to the different different questions. questions. With this this inform informat atio ion n we can can conclu conclude de that Custo Custome merr
sati satisf sfac acti tion on
level level
of
mostt mos
respondents is higher for SBI and HDFC banks which is provided by survey. Higher satisf satisfact action ion level level of SBI
and HDFC HDFC banks. banks.SBI SBI and HDFC HDFC provides provides good good servic servicee
facilities facilities benefit for the customers like like ATM service Net banking banking facility facility Location Location advantage etc.
5.2 SUGGESTIONS AND RECOMMENDATIONS 64
1. Both the the customers customers from from SBI SBI and HDFC HDFC bank have have suggested suggested that that the bank bank should open one of its branches in industrial area like like focal point. 2. One of the the most common common suggestions suggestions was to lower down down the minimum minimum balance balance required in the saving s account. 3. Staff should should be more co-operative co-operative to the the customer customers. s. 4. Customers Customers were were not fully fully aware of the the services services and the the various various charges charges which they have to pay. Therefore Banks should try to give some more information to its existing customers
BIBLIOGRAPHY WEBSITE USED http:// www.statebankofindia.com http://www.banknetindia.com/banking/index_1.htm http://www.banknetindia.com/banking/index_1.htm http://www.asiatradehub.com/india/banking/finance.html http://www.asiatradehub.com/india/banking/finance.html http://www.finance.indiamart.com/investment_in_india/standard_chartered_bank.
BOOKS FOLLOWED
65
Research methodology by C.R. Kothari
ANNEXURE QUESTIONNAIRE Name ____________________ 1.a )Gender
Male
Female
25-35
45-55
b) Age group
Less than 25
35-45
55-above
2. Occupation
66
Service
Professional
Housewife
Nil
50,000 to 1, 50,000
3, 00,000 to 5, 00,000
Business
Student
3.Income
Less than 50,000
1, 50,000 to 3, 00,000
5, 00,000 and above
4. What was the single most important reason that you chose this particular Bank?
I have a traditional bank account with the same bank
A brand name of the bank
ATM service
Net banking facility
Location advantage
5. Which account facility you are availing in the Bank?
Savings account
Current account
Fixed deposit
NRI account
6. Since how many years you are dealing with this Bank
Less than 1 year
3 to 5 year
1 to 2 years More than 5 years
7. What is the main reason that you typically visit your bank branch?
To make a deposit
To get advice for investment options
To inquire about a balance
To withdraw cash any other please
8. Which facility satisfies you most?
ATM
Loan
Early cheque clearance
Interest package
Net banking
67
Phone banking
Preparation of drafts
9.If you are provided with better services by optional bank. Would you like to move to other bank?
Yes
No
10. How would you rank the overall service?
Excellent
Satisfactory
Good
Average
below Average
Suggestions
If any______________________________________________ Signature
Thank you very much for your time, cooperation & patient
68
