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In the partial fulfillment of the Degree requirement towards the


SESSION (2008-2010)

Submitted By: Faculty Guide:

VARUN BAWA Sr. Lect. Arti Mehta

MBA-(3rd sem) CTIMIT

Roll No. 81407317174 Jalandhar



I hereby declare that project entitled “CUSTOMER SATISFACTION

UNIVERSITY, JALANDHAR in partial fulfillment of the requirement for
Master Degree of business administration (SEM –IIIrd) is my original work.
It is by my own and not copied one from other.



Dated: ___________


This is to certify that the survey entitled, “CUSTOMER SATISFACTION

REGARDING HDFC BANK” submitted in partial fulfillment of the requirement for
the award of degree of Masters of Business Administration (MBA) from Punjab
Technical University, Jalandhar is a bonafide summer training project work carried
out by VARUN BAWA, under my supervision and guidance and to the best of my
knowledge and information, no part of summer training project work has been
submitted for any other degree or diploma.

Sr. Lect. Arti Mehta



This project report bears the imprint of those who had rendered their wholehearted support
and encouragement without whose help this effort of mine would be in vain. I express my
deep sense of gratitude and sincere thanks to my project guide Sr.Lect. Arti Mehta for his
directions, suggestion and information provided which were of utmost importance for the
successful completion of the project. I am also thankful to Mr. Rajiv Bhatia for his proper
guidance. I thankful to the employees of HDFC Bank for assisting me in the timely
completion of project.

At last, I also thank to my family and my friends those helped me in my training

period and in the completion of project.



Without practical training, management education is meaningless so long with the theory;
practical training is provided to management students to expose them to the actual working
environment of any organization. Such training provides a framework of knowledge
relating to the concepts and practices of the assigned topics in the organization.

The summer training is an integral part of the course curriculum of Master of Business
Administration (M.B.A. 3rd). In this the student is in the position to analyze the integral
working of an organization with mature eyes and understand the dynamics in a much better
This particular project has been conducted at HDFC Bank. In the first phase of the research
project, there is a introduction of Banking, company profile and products of HDFC Bank
are given. After that a market research is performed with a sample size of 100 people. The
research study was limited to Gurdaspur. Here, in my survey, I have contacted the
respondents through personal interviews with the help of questionnaires.

The main objective of the research is to know the customer satisfaction level and their
perception regarding HDFC Bank and to know the customer awareness regarding the
HDFC Bank’s products.

HDFC Bank should lay more stress on advertisements, both in print as well as in other
media. Opening up the sector will certainly mean new products, better packaging and
improved customer service. Both new and existing players will have to explore new
distribution and marketing channels. Potential buyers for most of Banks lie in the middle
class. Competitors must segment the market carefully to arrive at appropriate products and
pricing. Recognizing the potential, in the past three years, the nationalized Banks have
already begun to target niches like pensions, women, children and rural peoples.

The report contains the organizational study done at HDFC Bank. The report title is

The report gives an overview of the banking Sector and company profile. And awareness of
customers about different types of products and services offered by HDFC Bank.

This study was conducted to find out the customer satisfaction regarding HDFC bank.

The methodology adopted for the study was through a structured questionnaire, which is
targeted to the different persons in Gurdaspur. For this purpose sample size of 100 was
taken. The data collected from the different persons was analyzed thoroughly and presented
in the form of charts and tables.

HDFC must advertise regularly and create brand value for its products and services. Most
of its competitors like ICICI, Axis, kotak Mahindra and nationalized banks use television
advertisements to promote their products. The Indian consumer has a false perception about
private banks – they feel that it would not safe.

Safety and returns are the two main reasons people invest in banks. On the whole HDFC
bank is a good place to work at. Every new recruit is provided with extensive training on
the products of HDFC. This training enables an advisor/sales manager to market the
policies better. The company should try to create awareness about itself in India. . With an
improvement in the sales techniques used, a fair bit of advertising and modifications to the
existing product portfolio, HDFC would be all set to capture the banking market in India as
it has around the globe.


Sr. No. Subject Covered Page No.

1 Introduction to the study 1

2 Introduction to the Banking 2

3 History of Banking in India 3-4

4 Banking structure in India 5

5 Indian Banking Industry 6

6 Upcoming Foreign Banks in India 7


8 Company Profile 9-10

9 Key Executives 11

10 Technology used in HDFC Bank 12

11 Products and customer segments 13-16

12 Business strategy 17

13 Inside HDFC Bank 18-22

14 Human resource 23

15 Rupees earned-Rupees spend 24

16 Recent development 25-26

17 Achievements in 2009 28

18 SWOT Analysis 29-30

19 Objectives 31

20 Research methodology 32-33

21 Data analysis & interpretation 34-51

22 Findings 52

23 Suggestions 53

24 Limitations 54

25 Conclusion 55

26 Bibliography 56


What is customer satisfaction?
Customer satisfaction refers to how satisfied customers are with the products or services
they receive from a particular agency. The level of satisfaction is determined not only by
the quality and type of customer experience but also by the customer’s expectations.
A customer may be defined as someone who

• has a direct relationship with, or is directly affected by your agency and

• Receives or relies on one or more of your agency’s services or products.

Customers in human services are commonly referred to as service users, consumers or

clients. They can be individuals or groups. An organization with a strong customer service
culture places the customer at the centre of service design, planning and service delivery.
Customer centric organizations will:

 Determine the customer’s expectations when they plan listen to the customer as
they design.

 Focus on the delivery of customer service activities value customer feedback when
they measure performance.

Why is it important?

There are a number of reasons why customer satisfaction is important in Banking Sector:

• Meeting the needs of the customer is the underlying rationale for the
existence of community service organizations. Customers have a right to
quality services that deliver outcomes.

• Organizations that strive beyond minimum standards and exceed the

expectations of their customers are likely to be leaders in their sector.

• Customers are recognized as key partners in shaping service development

and assessing quality of service delivery.

The process for measuring customer satisfaction and obtaining feedback on organizational
performance are valuable tools for quality and continuous service improvement.

Banking means accepting the deposits from the customers for lending to the needy and
extending the other services as to issue of dd etc.nowadays after introduction of private
sector banks the banks have become a profit centre and the functions become changed
and now banks are doing the insurance and mutual funds also. but nationalised banks
are still service oriented in extending loans for Education loan, and rural development

A Bank is an organization which lends money to the borrowers for a purposeful task,
and provides a facility to deposit and withdraw money when needed and charge for it.


Phase I

The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and
Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of
Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency
Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was
established which started as private shareholders banks, mostly Europeans shareholders.
In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab
National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and
1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank,
and Bank of Mysore were set up. Reserve Bank of India came in 1935.
During the first phase the growth was very slow and banks also experienced periodic
failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To
streamline the functioning and activities of commercial banks, the Government of India
came up with The Banking Companies Act, 1949 which was later changed to Banking
Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of
India was vested with extensive powers for the supervision of banking in India as the
Banking Authority.
During those days public has lesser confidence in the banks. As an aftermath deposit
mobilisation was slow. Abreast of it the savings bank facility provided by the Postal
department was comparatively safer. Moreover, funds were largely given to traders.

Phase II

Government took major steps in this Indian Banking Sector Reform after independence. In
1955, it nationalised Imperial Bank of India with extensive banking facilities on a large
scale especially in rural and semi-urban areas. It formed State Bank of India to act as the
principal agent of RBI and to handle banking transactions of the Union and State
Governments all over the country.
Seven banks forming subsidiary of State Bank of India was nationalised in 1960 on 19th
July, 1969, major process of nationalisation was carried out. It was the effort of the then
Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country
were nationalised.
Second phase of nationalisation Indian Banking Sector Reform was carried out in 1980
with seven more banks. This step brought 80% of the banking segment in India under
Government ownership.

The following are the steps taken by the Government of India to Regulate Banking
Institutions in the Country:

1949: Enactment of Banking Regulation Act.

1955: Nationalisation of State Bank of India.
1959: Nationalisation of SBI subsidiaries.
1961: Insurance cover extended to deposits.
1969: Nationalisation of 14 major banks.
1971: Creation of credit guarantee corporation.

1975: Creation of regional rural banks.
1980: Nationalisation of seven banks with deposits over 200 crore.

After the nationalisation of banks, the branches of the public sector bank India rose to
approximately 800% in deposits and advances took a huge jump by 11,000%.
Banking in the sunshine of Government ownership gave the public implicit faith and
immense confidence about the sustainability of these institutions.

Phase III

This phase has introduced many more products and facilities in the banking sector in its
reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set
up by his name which worked for the liberalisation of banking practices.
The country is flooded with foreign banks and their ATM stations. Efforts are being put to
give a satisfactory service to customers. Phone banking and net banking is introduced. The
entire system became more convenient and swift. Time is given more importance than

The financial system of India has shown a great deal of resilience. It is sheltered from any
crisis triggered by any external macroeconomics shock as other East Asian Countries
suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high,
the capital account is not yet fully convertible, and banks and their customers have limited
foreign exchange exposure.


Scheduled Banks in India

(A) Scheduled Commercial Banks

Public sector Private sector Foreign Banks Regional Rural

Banks Banks in India Bank

(28) (27) (29) (102)

• Nationalized
• Other Public
Sector Banks
• SBI and its

(B) Scheduled Cooperative Banks

Scheduled Urban Cooperative Scheduled State Cooperative

Banks (55) Banks (31)

Here we more concerned about private sector banks and competition among them. Today,
there are 27 private sector banks in the banking Sector: 19 old private sector banks and 8
new private sector banks. These new banks have brought in state-of-the-art technology and
aggressively marketed their products. The Public sector banks are facing a stiff
competition from the new private sector banks. The banks which have been setup in the
1990s under the guidelines Of the Narasimham Committee are referred to as NEW


The Indian banking market is growing at an astonishing rate, with Assets expected to reach
US$1 trillion by 2010. An expanding Economy, middle class, and technological
innovations are all Contributing to this growth.

The country’s middle class accounts for over 320 million people. In correlation with the
growth of the economy, rising income levels, increased standard of living, and affordability
of banking products are promising factors for continued expansion.

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

expansion of retail and rural banking. Players are becoming increasingly customer -
centric in their approach, which has resulted in innovative methods of offering new
banking products and services. Banks are now realizing the importance of being a big
player and are beginning to focus their attention on mergers and acquisitions to take
advantage of economies of scale and/or comply with Basel II regulation. “Indian
banking industry assets are expected to reach US$1 trillion by 2010 and are poised to
receive a greater infusion of foreign capital,” says Prathima Rajan, analyst in Celent's
banking group and author of the report.“The banking industry should focus on having a
small number of large players that can compete globally rather than having a large number
of fragmented players."


By 2009 to 2010 few more names is going to be added in the list of foreign banks in India.
This is as an aftermath of the sudden interest shown by Reserve Bank of India paving
roadmap for foreign banks in India greater freedom in India. Among them is the world's
best private bank by Euro Money magazine, Switzerland's UBS.

The following are the list of foreign banks going to set up business in India:-

• Royal Bank of Scotland

• Switzerland's UBS

• US-based GE Capital

• Credit Suisse Group

• Industrial and Commercial Bank of China

The Housing Development Finance Corporation Limited (HDFC) was amongst the first
to receive an ‘in principle' approval from the Reserve Bank of India (RBI) to set up a
bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry
in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited',
with its registered office in Mumbai, India. HDFC Bank commenced operations as a
Scheduled Commercial Bank in January 1995.

HDFC is India’s premier housing finance company and enjoys an impeccable track record
in India as well as in international markets. Since its inception in 1977, the Corporation has
maintained a Consistent and healthy growth in its operations to remain the market leader in
mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC
has developed significant expertise in retail mortgage loans to different market segments
and also has a large corporate client base for its housing related credit facilities. With its
experience in the financial markets, a strong market reputation, large shareholder base and
unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian

HDFC Bank began operations in 1995 with a simple mission to be a “World Class Indian
Bank.” It realized that only a single minded focus on product quality and service
excellence would help us get there. Today, the Bank is proud to say that it is well on its
way towards that goal.




HDFC bank ltd provides various financial products and services. It operates in three
segments: Retail Banking, Wholesale Banking, and Treasury. The Retail banking segment
provides various deposit products, including savings Accounts, current accounts, fixed
deposits, and demat accounts. It also offers Auto, personal, commercial vehicle, home,
gold, and educational loans; loans Against securities and property and health care finance
Working capital finance, construction equipment finance, and warehouse Receipt loans, as
well as credit cards, debit cards, depository, investment Advisory, bill payments, and
transactional services. In addition, this segment Sells third party financial products, such as
mutual funds and insurance, as Well as distributes life and general insurance products
through its tie-ups with insurance companies and mutual fund houses. The wholesale
banking Segment provides loans, non-fund facilities, and transaction services to large
Corporate, emerging corporate, small and medium enterprise, supply chain, Public sector

undertaking, central and state government departments, and Institutional customers. It
offers deposit and transaction banking products, Supply chain financing, working capital
and term finance, agricultural loans, and funded non-funded treasury, and foreign exchange
products. This segment’s services include trade services, cash management, and money
Market, custodial, tax collection, and electronic banking. In addition, it provides
correspondent bank services to co-operative banks, private banks, foreign banks, and
regional rural banks. The Treasury Services segment operates primarily in areas, such as
foreign exchange, money market, interest rate trading, and Equities. As of March 31, 2009
HDFC bank had a network of 1,142 branches And 3,295 automated teller machines in 528
cities in India. The company was founded in 1994 and is based in Mumbai, India.

March 2006 March 2007 March 2008 March 2009

Cities 228 316 327 528
Branches 535 684 761 1142
ATM’s 1323 1605 1977 3295

As of March 31, 2008, the Bank’s distribution network was at 761 Branches and 1977
ATMs in 327 cities as against 684 branches and 1,605 ATMs in 316 cities as of March 31,
2007. Against the regulatory approvals for new branches in hand, the Bank expects to
further expand the branch network by around 150 branches by June 30, 2008. During the
year, the Bank stepped up retail customer acquisition with deposit accounts increasing from
6.2 million to 8.7 million and total cards issued (debit and credit cards) increasing from 7
million to 9.2 million. Whilst credit growth in the banking system slowed down to about
22% for the year ended 2008-09, the Bank’s net advances grew by 35.1% with retail
advances growing by 38.6% and wholesale advances growing by 30%, implying a higher
market share in both segments.

The transactional banking business also registered healthy growth with cash management
volumes increased by around 80% and trade services volumes by around 40% over the
previous year. Portfolio quality as of March 31, 2008 remained healthy with gross
nonperforming assets at 1.3% and net non-performing assets at 0.4% of total customer


Deepak Parekh

Executive Chairman

Aditya Puri

Managing Director, Director, Member of Investors Grievance (Share) Committee, Member

of Fraud Monitoring Committee, Member of Premises Committee, Member of Credit
Approval Committee and Member of Risk Monitoring Committee

Adil Patrawala

Chief Operating Officer of HDFC Securities Limited and Whole time Director of HDFC
Securities Limited

Sunil Shah

Managing Director of HDFC Securities Limited and Director of HDFC Securities Limited.

Harish Engineer

Head of Wholesale Banking, Executive Director and Member of Customer Service


Paresh Sukthankar

Head of Credit, Market Risk & Investor Relations, Executive Director and Member of Risk
Monitoring Committee.

Debajeet Das

VP, Treasury


In the era of globalization each and every sector faced the stiff competition from their
rivals and world also converted into the flat from the globe. After the policy of
liberalization and RBI initiatives to take the step for the private sector banks, more and
more changes are taking the part into it. That are create competition between the private
sector banks and public sector bank. Private sector banks are today used the latest
technology for the different transaction of day to day banking life. As we know that
Information Technology plays the vital role in the each and every industry and gives the
optimum return from the limited resources.

Banks are service industry and today it gives the innovative Technology application to
Banking industries. HDFC BANK is the leader in the industries and today IT and HDFC
BANK together combined they reached the sky. New technology changed the mind of the
customers and changed the queue concept from the history banking transaction. Today
there are different channels are available for the banking transactions. There are drastically
changes seen in the use of Internet banking, in a year 2001 (2%) and in the year 2008
(25%). This type of technology gives the freedom to retail customers.

Centralized Processing Units Derived Economies of Scale

Electronic Straight Through Reduced Transaction Cost


Data Warehousing , CRM Improve cost efficiency, Cross

Innovative Technology Application Provide new or superior

HDFC BANK is the very consistent player in the new private sector banks. New private
sector banks to withstand the competition from public sector banks came up with
innovative products and superior service.



Loan Product Deposit Product Investment & Insurance

• Auto Loan • Saving a/c • Mutual Fund

• Loan Against • Current a/c • Bonds
Security • Fixed deposit • Knowledge Centre
• Loan Against • Demat a/c • Insurance
Property • Safe Deposit • General and Health
• Personal loan Lockers Insurance
• Credit card • Equity and Derivatives
• 2-wheeler loan • Mudra Gold Bar
• Commercial
vehicles finance
• Home loans
• Retail business
• Tractor loan
• Working Capital
• Construction
Equipment Finance
• Health Care
• Education Loan
• Gold Loan

Cards Payment Services Access To Bank

• Credit Card • NetSafe • NetBanking

• Debit Card • Merchant • OneView
• Prepaid Card • Prepaid Refill • InstaAlert
• Billpay Mobile Banking

• Visa Billpay • Phone Banking
• InstaPay • Email Statements
-------------------------------- • DirectPay • Branch Network
Forex Services • VisaMoney
-------------------------------- Transfer
• Product & Services • e–Monies
• Trade Services Electronic Funds
• Forex service Transfer
Branch Locater • Online Payment of
• RBI Guidelines Direct Tax


Corporate Small and Medium Financial Institutions

Enterprises and Trusts

• Funded Services • Funded Services BANKS

• Non Funded • Non Funded Services • Clearing Sub-Membership
Services • Specialized Services • RTGS – sub membership
• Value Added • Value added services • Fund Transfer
Services • Internet Banking • ATM Tie-ups
• Internet Banking • Corporate Salary a/c
• Tax Collection
Financial Institutions

Mutual Funds

Stock Brokers

Insurance Companies

Commodities Business



Total Deposits Gross Advances Net Revenue

Retail Wholesale

• HDFC Bank is a consistent player in the private sector Bank and have a
well balanced product and business mix in the Indian as well as overseas

• Customer segments (retail & wholesale) account for 84% of Net revenues
(FY 2008)

• Higher retail revenues partly offset by higher operating and credit costs.

• Equally well positioned to grow both segments.


Accounts & Deposits Remittances

• Rupee Saving a/c • North America

• Rupee Current a/c • UK
• Rupee Fixed Deposits • Europe
• Foreign Currency Deposits • South East Asia
• Accounts for Returning Indians • Middle East
• Africa
• Others
Quick remit
India Link
Cheque Lockbox
Telegraphic/ Wire Transfer
Funds Transfer Cheques/DDs/TCs

Investment & Insurances Loans

• Mutual Funds • Home Loans

• Insurance • Loans Against Securities
• Private Banking • Loans Against Deposits
• Portfolio Investment Scheme • Gold Credit Card

Payment Services Access To Bank

• Net Safe • Net Banking

• Bill Pay • One View
• InstaPay • InstaAlert
• Direct Pay • ATM
• Visa Money • Phone Banking
• Online Donation • Email Statements
• Branch Network


HDFC BANK mission is to be "a World Class Indian Bank", benchmarking themselves
against international standards and best Practices in terms of product offerings,
technology, service levels, risk management and audit & compliance. The objective is to
build sound customer franchises across distinct businesses so as to be a preferred provider
of banking services for target retail and wholesale customer segments, and to achieve a
healthy growth in profitability, consistent with the Bank's risk appetite. Bank is committed
to do this while ensuring the highest levels of ethical standards, professional integrity,
corporate governance and regulatory compliance. Continue to develop new product and
technology is the main business strategy of the bank. Maintain good relation with the
customers is the main and prime objective of the bank.

HDFC BANK business strategy emphasizes the following:

• Increase market share in India’s expanding banking and financial services

industry by following a disciplined growth strategy focusing on quality and not
on quantity and delivering high quality customer service.

• Leverage our technology platform and open scaleable systems to deliver more
products to more customers and to control operating costs.

• Maintain current high standards for asset quality through disciplined credit risk

• Develop innovative products and services that attract the targeted customers
and address inefficiencies in the Indian financial sector.

• Continue to develop products and services that reduce bank’s cost of funds.

• Focus on high earnings growth with low volatility.




Focus on effective work place organization

Believe in

“Small changes lead to large improvement”

Every successful organization has their own strategy to win the race in the competitive
market. They use some technique and methodology for smooth running of business.
HDFC BANK also acquired the Japanese technique for smooth running of work and
effective work place organization.

Five ‘S’ Part of Kaizen is the technique which is used in the bank For easy and systematic
work place and eliminating unnecessary things from the work place.


• It can be started immediately.

• Every one has to participate.
• Five “S” is an entirely people driven initiatives.
• Brings in concept of ownership.
• All wastages are made visible.

FIVE ‘S’ Means:-



(1) SORT:-

It focuses on eliminating unnecessary items from the work place.

It is excellent way to free up valuable floor space.

It segregates items as per “require and wanted”.

Frequently Less
Required Frequently
Remove Required
everything from
Wanted but
not required Junk

Systematize is focus on efficient and effective Storage method.

That means it identify, organize and arrange retrieval.

It largely focuses on good labeling and identification practices.

Objective: - “A place for everything and everything in its place”.

(3) SPIC- n - SPAN:-

Spic-n-Span focuses on regular clearing and self inspection. It brings in the sense of


It focuses on simplification and standardization. It involves standard rules and policies. It

establish checklist to facilitate autonomous maintenance of workplace. It assigns
responsibility for doing various jobs and decides on Five S frequency.


It focuses on defining a new status and standard of organized work place. Sustain means
regular training to maintain standards developed under S-4. It brings in self- discipline and
commitment towards workplace organization.








For Example


1 – Work Station (1)

3 – Drawer (3)
A - Shelf (A)
6 – File Number (6)



Welcome Desk

Personal Banker


Relationship Manager

Branch Manager



In the HDFC BANK each department has their different color coding apply on the different
file. Due to this everyone aware about their particular color file which is coding on it and
they save their valuable time. It is a part of Kaizen and also included in the system of the
Five ‘S’. Logic behind it that, the color coding is always differentiating the things from the
similar one.


The Bank’s staffing needs continued to increase during the year particularly in the retail
banking businesses in line with the business growth. Total number of employees increased
from 14878 as of March31, 2006 to 21477 as of March 31, 2007. The Bank continues to
focus on training its employees on a continuing basis, both on the job and through training
programs conducted by internal and external faculty.

The Bank has consistently believed that broader employee ownership of its shares has a
positive impact on its performance and employee motivation. The Bank’s employee stock
option scheme so far covers around 9000 employees.


It is more important for every organization to know about from where and where to spent
money. And balanced between these two things rupee earned and rupee spent are required
for smooth running of business and financial soundness. This type of watch can control
and eliminate the unnecessary spending of business. In this diagram it include both things
from where Bank earned Rupee and where to spent.

HDFC BANK earned from the ‘Interest from Advances’ 51.14 %, ‘Interest from
Investment’ 27.12 %, bank earned commission exchange and brokerage of 15.25 %. These
are the major earning Sources of the bank. Bank also earned from the Forex and
Derivatives and some other Interest Income. Bank spent 39.75 % on Interest Expense,
30.27 % on Operating Expense and 14.58 % on Provision. Bank also spent Dividend and

Tax on dividend, Loss on Investment, Tax. As we discuss above that balancing is must
between these two for every organization especially in the era of globalization where there
are stiff competition among various market players.


The Reserve Bank of India has approved the scheme of amalgamation of Centurion
Bank of Punjab Ltd. with HDFC Bank Ltd. with effect from May 23, 2008.

All the branches of Centurion Bank of Punjab will function as branches of HDFC Bank
with effect from May 23, 2008. With RBI’s approval, all requisite statutory and regulatory
approvals for the merger have been obtained.

The combined entity would have a nationwide network of 1167 branches; a strong deposit
base of around Rs.1,22,000 crores and net advances of around Rs.89,000 crores. The
balance sheet size of the combined entity would be over Rs.1,63,000 crores.
Merger with Centurion Bank of Punjab Limited

On March 27, 2008, the shareholders of the Bank accorded their consent to a scheme of
amalgamation of Centurion Bank of Punjab Limited with HDFC Bank Limited. The
shareholders of the Bank approved the issuance of one equity share of Rs.10/- each of
HDFC Bank Limited for every 29 equity shares of Re. 1/- each held in Centurion
Bank of Punjab Limited. This is subject to receipt of Approvals from the Reserve Bank of
India, stock exchanges and other requisite statutory and regulatory authorities. The
shareholders Also accorded their consent to issue equity shares and/or warrants convertible
into equity shares at the rate of Rs.1,530.13 each to HDFC Limited and/or other
promoter group companies on preferential basis, subject to final regulatory approvals in
this regard. The Shareholders of the Bank have also approved an increase in the
authorized capital from Rs.450 crores to Rs.550 crores.

Promoted in 1995 by Housing Development Finance Corporation (HDFC), India's

leading housing finance company, HDFC Bank is one of India's premier banks providing a
wide range of financial products and services to its over 11 million customers across
hundreds of Indian cities using multiple distribution channels including a pan-India
network of branches, ATMs, phone banking, net banking and mobile banking. Within a
relatively short span of time, the bank has emerged as a leading player in retail banking,
wholesale banking, and treasury operations, its three principal business segments. The
bank's competitive strength clearly lies in the use of technology and the ability to deliver
world-class service with rapid response time. Over the last 13 years, the bank has
successfully gained market share in its target customer franchises while maintaining
healthy profitability and asset quality.

As on March 31, 2008, the Bank had a network of 761 branches and 1,977 ATMs in 327
cities. For the year ended March 31, 2008, the Bank reported a net profit of INR 15.90
billion (Rs.1590.2crore),up 39.3%, over the corresponding year ended March 31,
2007. As of March 31, 2008 total deposits were INR 1007.69 billion,(Rs.100,769
crore) up 47.5% over the corresponding year ended March 31, 2007. Total balance sheet
size too grew by 46.0% to INR 1,331.77 billion (133177 crore). Leading Indian and
international Publications have recognized the bank for its performance and quality.

Centurion Bank of Punjab is one of the leading new generations Private sector banks in
India. The bank serves individual consumers, small and medium businesses and large
corporations with a full range of financial products and services for investing, lending and
advice on financial planning. The bank offers its customers an array of wealth
management products such as mutual funds, life and general insurance and has established
a leadership ‘position’. The bank is also a strong player in foreign exchange services,
personal loans, mortgages and agricultural loans.

Additionally the bank offers a full suite of NRI banking products to Overseas Indians. On
29th August 2007, Centurion Bank of Punjab merged with Lord Krishna Bank (LKB), post
obtaining all requisite statutory and regulatory approvals. This merger has further
strengthened the geographical reach of the Bank in major towns and
cities across the country, especially in the State of Kerala, in addition to its existing
dominance in the northern part of the country.

Centurion Bank of Punjab now operates on a strong nationwide franchise of 404 branches
and 452 ATMs in 190 locations across the country, supported by employee base of over
7,500 employees. In addition to being listed on the major Indian stock exchanges, the
Bank’s shares are also listed on the Luxembourg Stock Exchange.



Financial Advisor
Awards 2009 Best Performing Bank

Business Standard Best

Banker Award Mr. Aditya Puri, MD, HDFC Bank
Fe Best Bank Awards - Best Innovator of the year award for MD Mr. Aditya Puri
2009 - Second Best Private Bank in India
- Best in Strength and Soundness Award

Euro money Awards 'Best Bank in India'

Economic Times Brand
Equity & Nielsen
Research annual survey Most Trusted Brand - Runner Up
Asia Money 2009
Awards 'Best Domestic Bank in India'
IBA Banking 'Best IT Governance Award - Runner up'
Technology Awards
Global Finance Award 'Best Trade Finance Bank in India for 2009
IDRBT Banking 'Best IT Governance and Value Delivery'
Technology Excellence
Award 2008
Asian Banker 'Asian Banker Best Retail Bank in India Award 2009 '
Excellence in Retail
Financial Services



• Right strategy for the right • Some gaps in range for certain
products. sectors.

• Superior customer service vs. • Customer service staff needs

competitors. training.

• Great Brand Image • Processes and systems, etc

• Products have required • Management cover insufficient.

accreditations. • Sectoral growth is

constrained by low
• High degree of customer unemployment levels and
satisfaction. competition for staff

• Good place to work

• Lower response time with

efficient and effective service.

• Dedicated workforce aiming at

making a long-term career in
the field.

Opportunities Threats

• Profit margins will be good. • Legislation could impact.

• Could extend to overseas broadly. • Great risk involved

• New specialist applications. • Very high competition prevailing in

• Could seek better customer deals. the industry.

• Fast-track career development • Vulnerable to reactive

opportunities on an industry-wide attack by major competitors

basis. • Lack of infrastructure in rural areas

• An applied research centre to create could constrain investment.

opportunities for developing
• High volume/low cost market is
techniques to provide added-value
intensely competitive.


• To know the customer satisfaction level and their perception regarding HDFC

• To know the customer awareness regarding the Bank’s products.

• To know the level of interest of customer regarding the different schemes of bank.

• To know the preference of customer regarding the extra services.

• To know the problems of customer regarding bank.


Research is a careful investigation or inquiry especially through search for new facts in
branch of knowledge: market research specifies the information. Required to address these
issues: designs the method for collecting information: manage and implements the data
collection process analyses the results and communicates the finding and their implications.

Research problem is the one which requires a researcher to find out the best solution for the
given problem that is to find out the course of action, the action the objectives can be
obtained optimally in the context of a given environment.


A framework or blueprint for conducting the research project. It specifies the details of the
procedures necessary for obtaining the information needed to structure and/or solve
research problems. A good research design lays the foundation for conducting the project.
A good research design will ensure that the research project is conducted effectively and
efficiently. Typically, a research design involves the following components, or tasks:

 Define the information needed.

 Design the research.

 Specify the measurement and scaling procedures.

 Construct and present a questionnaire or an appropriate form for data collection.

 Specify the sampling process and sampling size.

 Develop a plan of data analysis.

Data Collection: - The objectives of the project are such that both primary and
secondary data is required to achieve them. So both primary and secondary data was used
for the project. The mode of collecting primary data is questionnaire mode and sources of
secondary data are various magazines, books, newspapers, & websites etc.

1. Primary Data: The primary data was collected to measure the customer satisfaction
and their perception regarding HDFC Bank. The primary data was collected by means of
questionnaire and analysis was done on the basis of response received from the customers.
The questionnaire has been designed in such a manner that the consumer’s satisfaction
level can be measured and consumer can enter his responses easily.

2. Secondary Data: The purpose of collecting secondary data was to achieve the
objective of studying the recent trends and developments taking place in banking.

Sample size –

100 customers were selected.

Sampling Unit –


Sampling Technique –

Convenient sampling.

Analysis and Interpretation

After the data collection, it was compiled, classified and tabulated manually and with help
of computer. Then the task of drawing inferences was accomplished with the help of
percentage and graphic method.

1. For how long you are part of HDFC Bank?

Response No. of Respondents %age of Respondents

Less than 6 Months 20 20%
Less than 1 Year 37 37%
Less than 2 Years 14 14%
More than 2 Years 29 29%
Total 100 100%



Less than 6 Months Less than 1 Year

Less than 2 Years More than 2 Years


From the above graph it is clear that majority of the respondents are part of HDFC Bank
from last one year i.e. 37%; 29% of the respondents are part of HDFC Bank from last more
than 2 years; 20% respondents from 6 months and remaining 14% respondents are part of
HDFC Bank for last two years.

2. What are reasons that attract you to be a customer of the
Response No. of Respondents %age of Respondents
Image 25 25%
Extra Services 25 25%
Services 45 45%
All of above 5 5%

30 image
25 Extra services
20 services
15 all of above


From the above graph it is clear that majority of the respondents i.e. 45% are become part
of HDFC Bank because of its services; 25% because of its image; 25% because of its extra
services and rest because of all the three factors.

3. Are you aware of the different services offered by HDFC

Response No. of Respondents %age of Respondents

Yes 91 91%
No 9 9%
Total 100 100%



Yes No


From the above graph it is clear that majority of the respondents are aware of products and
services offered by HDFC Bank i.e. 91% and 9% respondents are not aware of services
offered by HDFC Bank.

4. Do you know about these following services of the bank?

Response No. of Respondents %age of Respondents

Saving a/c 100 100%
Fixed deposits 100 100%
Current a/c 53 53%
Demat a/c 5 5%
Credit cards 25 25%
Mutual funds 16 16%
Loans 95 95%


saving a/c
80 fixed deposits
current a/c
60 demat a/c
credit cards
40 mutual funds


From the above graph it is clear that majority of the respondents are aware of saving a/c &
FD’s i.e. 100%.53% are aware about current a/c, 5% demat a/c, 25% credit card, 16%
mutual fund and 95% are aware of loans.

5. Which of these services are you using?

Response No. of Respondents %age of Respondents

Saving a/c 65 65%
Fixed deposits 58 58%
Current a/c 40 40%
Demat a/c 3 3%
Credit cards 0 0%
Mutual funds 10 10%
Loans 47 47%

saving a/c
70 fixed deposits
60 current a/c
40 demat a/c
20 credit card
10 mutual funds
0 saving a/c


From the above graph it is clear that majority of the respondents are using saving a/c i.e.
65%.58% are using FD’s, 40% current a/c, 3% demat a/c, 0% credit card, 10% mutual fund
and 47% are aware of loans.

6. Which of these services are you further interested in?

Response No. of Respondents %age of Respondents

Saving a/c 20 20%
Fixed deposits 24 24%
Current a/c 10 10%
Demat a/c 0 0%
Credit cards 0 0%
Mutual funds 23 23%
Loans 19 19%


saving a/c
20 FD's
current a/c
15 demat a/c
credit cards
mutual funds
5 loans


From the above graph it is clear that majority of the respondents are interesting in FD’s i.e.
24%,20% are interesting in saving a/c, 40% current a/c, 23% mutual fund, 19% in loans
and no body is interesting in credit cards and demat a/c’s.

7. Which service of the bank would you rate the best?

Response No. of Respondents %age of Respondents

Saving a/c 33 33%
Fixed deposits 40 40%
Current a/c 12 12%
Demat a/c 0 0%
Credit cards 0 0%
Mutual funds 10 10%
Loans 5 5%

saving a/c
current a/c
20 demat a/c
15 credit cards
mutual funds


From the above graph it is clear that 33% of the respondent rate saving a/c, the best
product. 40% said FD’s are best. 12% said current a/c.10% said about mutual funds.5%
said about loans and no one rate demat a/c & credit card.

8. Do you know about the Extra services being provided by the

Response No. of Respondents %age of Respondents

Yes 69 69%
No 41 41%

69% no


From the above graph it is clear that 69% of the respondents are known about the
innovative services and the rest is unknown about it.

9. Which of the following Extra service of the bank would you
like to go in for?

Response No. of Respondents %age of Respondents

Phone banking 5 5%
ATM 60 60%
Net banking 10 10%
Bill payment 10 10%
Non of these 5 5%
All of these 10 10%

all of these
non of these
bill payment
net banking
phone banking

0 20 40 60 80


From the above graph it is clear that 5% of the respondents would like to go for phone
banking, 60% for ATM’s, 10% for net banking, 10% for bills payment, 5% don’t want any
innovative services and 10% want all these services.

10. What is your perception about the service of the bank?

Response No. of Respondents %age of Respondents
Good 35 35%
Average 55 55%
Poor 10 10%



30 Average



From the above graph it is clear that 35% of the respondents found the service of HDFC
Bank good, 55% found it average and 10% found it poor.

11. Are you satisfied with the dealing of the bank officials?

Response No. of Respondents %age of Respondents
Yes 30 30%
No 25 25%
To some extent 45 45%

30 Yes

25 NO
TO some


From the above graph it is clear that 30% of the respondents are satisfied with the dealing
of the bank officials, 45% are not fully satisfied and 25% are dissatisfied.

12. Any problem you are facing regarding the bank?

Response No. of Respondents %age of Respondents

Timeliness 78 78%
Customer relationship 12 12%
Infrastructure 10 10%
Others 0 0%

50 Customer
20 Other



From the above graph it is clear that 78% of the respondent facing the problem of
timeliness, 12% customer relationship and 10% of infrastructure.

13. How likely are you to recommend Bank services to a

friend or colleague?

Response No. of Respondents %age of Respondents
Very unlikely 8 8%
Somewhat unlikely 30 30%
Neither likely nor unlikely 17 17%
Somewhat likely 35 35%
Very likely 10 10%

very unlikely

neither likely
nor unlikely
very likely


From the above graph it is clear that 8% of the respondents are unlikely to recommend
the products of HDFC Bank to their friends and colleagues, 30% said somewhat
unlikely, 17% said neither likely nor unlikely, 35% said somewhat likely and 10% said
very likely.

14. How will you rate the HDFC Bank in maintaining good
customer relationship?

Response No. of Respondents %age of Respondents
Good 20 20%
Average 57 57%
Poor 33 33%





From the above graph it is clear that 20% of the respondents said HDFC Bank is good in
maintaining customer relationship, 57% said it is average and rest 33% said it is poor in the

15. What is your overall satisfaction rating with our bank?

Response No. of Respondents %age of Respondents

Very dissatisfied 2 2%
Somewhat dissatisfied 9 9%
Neither satisfied nor 21 21%
Very satisfied 48 48%
Somewhat satisfied 20 20%

Rating of the company

very dissatisfied

neither satisfied

very satisfied



somewhat satisfied
0 50 100 150


From the above graph it is clear that 48% of the respondents are very satisfied with the
bank, 20% are somewhat satisfied, 21% are neither satisfied nor dissatisfied, 9% are
somewhat dissatisfied and 2% are very much dissatisfied with the bank.


► Majority of the customers are satisfied with HDFC Bank.

► Majority of the customers are aware of services and extra services offered by HDFC
Bank. But not all the services.

► The majority of the customers found services of the bank are average.

► Majority of the respondents are found the bank is average in maintaining the good
customer relationship.

► Majority of the respondent said that they are facing the problem of timeliness and
rest are facing problem of customer relationship and infrastructure.

► The perception of the majority of the customer regarding the bank is good because
majority of the customers are satisfied with the bank and they also recommend the products
of the bank.

► The most preferable extra service is ATM’s and the less preferable services are
bills payment, net banking and phone banking.

► The majority of customers are more interested in FD’s, mutual funds and saving

► The majority of the customers are satisfied with the dealing of the officials upto
some extent.

► Main factor that attract customers towards bank is the services of the bank.

► Services that are most used by the customer are saving a/c, FD’s, current a/c and


► More stress should give on the advertisement and promotional activities.

► The Bank should make some efforts to improving good relationship with customer.

► The bank should enhance their services according to the needs of the customer.

► The bank makes its procedures less time consuming.

► The bank should make effort to aware the customers about their all the extra


It is said, “Nothing is perfect” and if the quite is true, I am sure that there would be few
shortcoming in this project also. Sincere efforts have been made to eliminate discrepancies
as far as possible but few would have reminded due to limitations of the study. These are:

 The research was carried out in a short period.

 Limited sample size.

 The information given by the respondent might be biased some of them might not
be interested to given correct information.

 Some of the respondents of the survey were unwilling to share information.


At the end I would like to conclude that The Indian banking market is growing at an
astonishing rate, with Assets expected to reach US$1 trillion by 2010. HDFC bank had a
network of 1,142 branches And 3,295 automated teller machines in 528 cities in India.. The
majority of customers are satisfied. But the bank should target on the rest of the customers
who are not satisfied. The customers are aware about the bank’s services but the Bank
should try to create more awareness among people. HDFC Bank should lay more stress on
advertisements, both in print as well as in other media for this purpose. Number of
formalities should reduce, as customer feels irritated with lots of formalities and it will save
the time of customer and Bank also.

• www.bnknetindia/com/banking/finance

• http://en.wikipedia.org/wiki/bankingfinancialcompany

• www.hdfcbank.com

• www.hdfcbank/products/finance

• www.google.com

• www.iloveindia.com.


Name ______________________ Age _______________________

Gender _____________________ Occupation _________________

Annually Income _____________ e-mail _____________________

Address _____________________________________________________

1. For how long you are part of HDFC Bank?

Less than 6 Months ( ) Less than 1 Year ( )
Less than 2 Years ( ) More than 2 Years ( )

2. What are reasons that attract you to be a customer of the bank?

a) its image ( )

b) its service ( )

c) products ( )

d) all of the above ( )

3. Are you aware of the different services offered by HDFC Bank?

Yes ( ) No ( )

4. Do you know about these services of the banking industry?

a) Savings a/c Yes/no

b) Fixed deposits yes/no

c) Current a/c’s yes/no

d) Demat a/c’s yes/no

e) Credit card yes/no

f) Insurances yes/no

g) Mutual funds yes/no

h) Loans yes/no

5. Which of these products are you using?

a) Savings a/c yes/no

b) Fixed deposits yes/no

c) Current a/c yes/no

d) De-mat a/c yes/no

e) Credit card a/c yes/no

f) Insurance yes/no

g) Mutual finds yes/no

h) Loans yes/no

6. Which of these products are you more interested in?

a) Savings a/c yes/no

B) Fixed deposits yes/no

c) Current a/c yes/no

d) De-mat a/c yes/no

e) Credit card a/c yes/no

f) Insurance yes/no

g) Mutual finds yes/no

h) Loans yes/no

7. Which services of the banks would you rate the best?

a) Saving a/c

b) Fixed deposits

c) Current a/c

d) De-mat a/c

e) Credit card a/c

f) Insurance

g) Mutual finds

h) Loans

8. Do you know about the extra services being provided by

the bank?

a) Yes

b) No

9. Which of the following extra service of the banks would you

Like to go in for?

a) Phone banking ( )

b) ATM ( )

c) Net banking ( )

d) Mobile banking ( )

e) Bill payment ( )

f) None of these ( )

g) All of these ( )

10. What is your perception regarding the service of the bank?

a) Good ( )

b) Average ( )

c) Poor ( )

11. Are you satisfied with the dealing of the bank officials?

a. Yes ( )

b. No ( )

c. To some extend ( )

12. Any problem you are facings regarding the bank?

Timeliness ( )
Customer relationship ( )
Infrastructure ( )
Others ( )

13. How likely are you to recommend Bank services to a friend or colleague?

(1) Very unlikely ( )

(2) Somewhat unlikely ( )
(3) Neither likely nor unlikely ( )
(4) Very likely ( )
(5) Somewhat likely ( )

14. How will you rate the HDFC Bank in maintaining good customer relationship?
(1) Good ( )
(2) Average ( )
(3) Poor ( )

15. What is your overall satisfaction rating with our company?

(1) Very dissatisfied ( )
(2) Somewhat dissatisfied ( )
(3) Nether satisfied nor dissatisfied ( )
(4) Very satisfied ( )
(5) Somewhat satisfied ( )

Thanks for participating in the survey.