A PROJECT REPORT ON

COMPARATIVE STUDY OF CUSTOMERS SATISFACTION TOWARDS HDFC BANK AND STATE BANK OF INDIA

MINU CHARANIA BMS III SEM VI 108518 2012-2013

St. Francis College for Women, Begumpet, Hyderabad Department of Business Management Studies March 2012

DECLARATION

I,Minu Charania of BMS III, roll no 108518, declare that this project titled,A comparative study of customers Satisfaction Towards hdfc bank And State bank of india submitted to St.Francis College For Women is a bonafide work undertaken under the guidance of my mentor-Dr. Subi Verghese and has not been submitted to any other college or university for award of any degree/diploma.

DATE: Signature of the Student Name of the Student: Minu Charania Roll No. 108518

B.M.S V Semester

SUPERVISORS CERTIFICATE

This is to certify that the project work entitled A comparative study of customers Satisfaction Towards hdfc bank And State bank of India is a bonafide work carried out by Ms Minu Charania, student of BMS III, St. Francis College for Women, Begumpet during the academic year 2011-2012 in partial fulfillment for the award of the Degree of Bachelor of Management Studies. I hereby certify that the results embodied in this work have not been submitted to any other Institution or University for an award or diploma. This work has been done under my supervision.

Date:

Signature of the Project Work Guide Name of the Guide: Dr. Subi Verghese Lecturer Dept. of B.M.S

ACKNOWLEDGEMENT

In the successful completion of this project inspiration and guidance of many people was involved. A mere form of acknowledgement would be demeaning the status of this whole effort which has had the blessings and supervision of the eminent person around me. First of all I would like to thank Dr.Subi Varghese who was there to guide me at every step during the course of this project. She gave me tips for the improvement in project whenever required. Apart from this I feel indebted to all faculty members of St.Francis College For Women, especially who have helped, developed the right kind of attitude and scholastic excellence in me. Last but not the least; I am very much thankful to my parents, friends and all those persons who made this research project possible, for their consistent guidance and constructive criticism.

Minu Charania BMS(VI sem) Roll NO:108518

TABLE OF CONTENTS
Contents
I. INTRODUCTION 1.1 Research Problem 1.2 Significance of the Project 1.3 Objectives of the study 1.4 Methodology 1.4.1 1.4.2 1.4.3 Sources of information Sample Design Tools and Techniques of Analysis 3-11 4 4-9 10-11 12-14 15-28 29-30 i-iv v 2-3 1-3 1 1 2

Page No:

1.5 Scope of the study II. REVIEW OF LITERATURE 2.1 Theoretical back ground 2.2 Citing of past works III. IV. V. COMPANY PROFILE DATA ANALYSIS AND INFERENCES SUMMARY AND CONCLUSION ANNEXURES WEBLIOGRAPHY AND BIBILOGRAPHY

Chapter 1 INTRODUCTION
Bankers play very important role in the economic life of the nation. The health of the economy is closely related to the soundness of its banking system. Although bankscreate no new wealth but their borrowing, lending and related activities facilitate the process of production, distribution, exchange and consumption of wealth. In this way they become very effective partners in the process of economic development. Today modern banks are very useful for the utilization of the resources of the country. Thebanks are mobilizing the savings of the people for the investment purposes. If there would be no banks then a great portion of a capital of the country would remain idle A bank as a matter of fact is just like a heart in the economic structure and the Capital provided by it is like blood in it. As long as blood is in circulation the organs will remain sound and healthy. If the blood is not supplied to any organ then that part would become useless, so if the finance is not provided to Agricultural sector or industrial sector, it will be destroyed. Loan facility provided by banks works as an incentive to the producer to increase the production. Many difficulties in the international payments have been overcome and volume of transactions has been increased. Cheques, drafts bills of exchange and letters of credit are very important instruments of the banks. The banks collect these instruments drawn on banks in other cities or countries and proceeds according to the accounts of the customer's concerns

1.1 Research problem:

Through this research i have identified and investigated the variables that affect consumer behavior regarding the services provided by HDFC bank and SBI bank. This will allow banking sector organizations to build an effective marketing strategy whereas awareness of the market

will help to improve and adjust their customer centric approach. Why different people choose different bank and what are the features they look for while utilizing its services?

1.2 Significance of the Study:

Consumer behavior is the study of when, why, how, and where people do or do not buy a service. It studies characteristics of individual consumers such as behavioral variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from several factors like Advertisement, Wide variety of Usage, low interest, ATM facilities, mobile banking, internet banking, sms services etc. Customer behavior study is based on consumer buying behavior, with the customer playing the three distinct roles of user, payer and buyer. This study need to understand the behavior and preferences of banking services of customers in the study area. The purpose of this study is to investigate the factors affecting the customers decision made before purchase of a banking service. My findings will help us give suggestions on what actions bankers might take in order to fill the gap between consumer expectations and the company efforts.

1.3OBJECTIVES OF THE STUDY:

2. To know preference of customers regarding public sector banks and private sector banks. 3. To analyze which facility influences the customer most while selecting Bank. 4. To compare the various services provided by these banks. 5. To give suggestions and conclusions about the study.

1.4 Methodology:
Both Primary and Secondary research has been carried out for this study

Sample design
A random sample of 70 respondents was chosen for the research through the questionnaires developed to find out the preferred brand of handset by the mobile phone users.

Sources of Data
o Primary data The data, which has been collected for the first time and is original.

In this study the primary data is in the form of a structured questionnaire. o Secondary Data The secondary information is mostly taken from websites, books, journals and magazine

Tools and Techniques of Analysis:

The analysis done for the data obtained by the technique of random sampling is primarily descriptive in nature.

1.5 Scope of the study

Personal visit to the branches of SBI and HDFC banks was done to collect the first hand information. Study is done with the special reference to the area, Secunderabad city.

Chapter II Review of Literature:

This chapter talks about evolution and history of banking, statistical data, awards, current services provided by HDFC bank and SBI bank, major competitors in private sector and public sector. This chapter is the base on which the objectives can be studied

Theoretical Background:
. 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 sector banks or the 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 revenue niche retail segments. The Indian banking has finally worked up to 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 customers 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 the major lenders in the economy due to their sheer size and penetrative networks which assures them high deposit mobilization. The Indian banking can be broadly categorized into nationalized, private banks and specialized banking institutions. The Reserve Bank of India act as a centralized body monitoring any discrepancies and shortcoming in the system. It is the foremost monitoring body in the Indian financial sector. The nationalized banks (i.e. government-owned banks) continue to dominate the Indian banking arena. Industry 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. The private sector bank grid also includes 24 foreign banks that have started their operations here. Under the ambit of the nationalized banks come the specialized banking institutions. These co-operatives, rural banks focus on areas of agriculture, rural development etc., unlike commercial banks these co-operative banks do not lend on the basis 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 give a marginally higher percentage on savings deposits. Many of these cooperative banks diversified into specialized areas (catering to the vast retail audience) like car finance, housing loans, 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 to its clients.

TYPES OF BANKS
Central Bank The Reserve Bank of India is the central Bank that is fully owned by the Government. It is governed by a central board (headed by a Governor) appointed by the Central Government. It issues guidelines for the functioning of all banks operating within the country. Co-operative Sector The co-operative sector is very much useful for rural people. The co-operative banking sector is divided into the following categories. a. State co-operative Banks b. Central co-operative banks c. Primary Agriculture Credit Societies 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

PRIVATE SECTOR BANKS a. Old generation private banks b. New generation private banks c. Foreign banks operating in India d. Scheduled co-operative banks e. Non-scheduled banks
Private Sector Banks 1. HDFC Bank 2. ICICI Bank 3. 4. 5. 6. 7. Federal Bank ING Vysya Bank Axis Bank (formerly UTI Bank) Yes Bank Bank of Rajasthan

8. Bharat Overseas Bank 9. Catholic Syrian Bank

10. Centurion Bank of Punjab

11. City Union Bank 12. Development Credit Bank 13. Dhanalakshmi Bank 14. Ganesh Bank of Kurundwad 15. IndusInd Bank 16. Jammu & Kashmir Bank 17. Karnataka Bank Limited 18. Karur Vysya Bank 19. Kotak Mahindra Bank 20. Lakshmi Vilas Bank 21. Nainital Bank 22. Ratnakar Bank 23. SBI Commercial and International Bank 24. South Indian Bank 25. Amazing Mercantile Bank 26. Punjab National Bank 27. Rupee Bank 28. Saraswat Bank 29. Tamilnad Mercantile Bank 30. Thane Janata Sahakari Bank 31. Bassein Catholic Bank

After nationalization of 14 commercial banks in 1969, no new private banks were licensed by RBI in the country, though there was no legal bank on entry of private sector banks. The Narsimha committee report of 1991, has envisaged a larger role for private sector banks. In recognition of need to introduce greater competition with a view to achieving higher productivity and efficiency of banking system. RBI issued few guidelines in Jan 1993 for entry of private sector banks. It prescribed of minimum paid up capital of Rs.100 crores for new bank and shares to be listed at stock exchanges new bank after being granted license under Banking Regulation Act, shall be registered as Public ltd. Company under companies Act 1956. Subsequently nine new commercial banks have been granted license to start banking operations. The new private sector banks have been very aggressive in business expansion and are also reporting higher profit levels taking advantage of technical and skilled manpower. In certain areas, these banks have been out crossed the other group of banks including foreign banks.

GUIDELINES FOR PRIVATE SECTOR BANKS The RBI issued guidelines regarding the formation and functioning of private sector banks in January 1993. These guidelines are as follows:

The banks shall be governed by the provisions of The Reserve Bank of India Act, 1934 The Banking Regulations Act, 1949 other relevant statuaries. Private sector banks are required to be registered as public limited companies in India. The authority to grant a license lies with the RBI.
The shares of banks are required to be listed on stock exchanges.

Preference will be given to those banks whose headquarters are proposed to be located in a center that does not have headquarters of any other bank.

 Maximum voting rights of an individual shareholder would be limited to 1% of total voting rights. The new bank would not be allowed to have as its director any person who is already a director in a banking company.
The bank will be subject to prudential norms in respect of banking operations, accounting policies and other policies, as laid down by RBI. The bank will be required to adhere to the following: Minimum paid up share capital of Rs. 1 bln. Promoters' contribution as determined by the RBI Capital adequacy of 8% of the risk weighted assets Single borrower and group borrower exposure limits in force Priority sector lending Export credit Loan policy within overall policy guidelines laid down by the RBI.

The banks will be free to open branches anywhere once they satisfy the capital adequacy and prudential accounting norms. The banks would not be allowed to have investments in subsidiaries, mutual funds and portfolio investments in other companies in excess of 20% of the banks' own paid up capital and reserves.
The banks would be required to use modern infrastructural facilities in office equipment, computer, telecommunications etc. 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 products and financial 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 Banks 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. IDBI Bank: IDBI Ltd., the tenth largest development bank in the world has promoted world class institutions in India. IDBI promoted IDBI bank to mark the formal foray of the IDBI group into commercial Banking. IDBI begun with an equity capital base of Rs.1000 million, commenced its first branch at Indore in November 1995. The birth of IDBI took place after RBI issued guidelines for entry of new private sector banks in January 93. IDBI bank deployed Finacle, the e-age banking solution from Infosys tio consolidate its position, meet challenges and quickly seize new business opportunities. IDBI bank become the first to offer mobile refill/recharge using sms, launch of ATM next, which provide online information about News, cricket scores, emergency numbers, banks products on ATMs.

UTI Bank: UTI Bank was the first of the new private banks to have brgun 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 crores with public holding at 56.18 %. The banks registered office is at Ahmedabad 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 crore, with UTI contributing Rs.100 crore, LIC-Rs.7.5 crore and its four

subsidiaries contributing Rs. 1.5 crore each. HDFC Bank: HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over 495 branches spread over 218 cities across India. All branches are linked on an online real-time basis. Customers in over 120 locations are also serviced through Telephone Banking. The Banks expansion plans take into account the need to have a presence in all major industrial and commercial centres where its corporate customers are located as well as the need to build a strong retail customer base for both deposits and loan products. Being a clearing/settlement bank to various leading stock exchanges, the Bank has branches in the centres where the NSE/BSE have a strong and active member base. The authorized capital of HDFC Bank is Rs.450 crore (Rs.4.5 billion). The paid-up capital is Rs.309.9 crore (Rs.3.09 billion). The HDFC Group holds 22.2% of the banks equity and about 19.5% of the equity is held by the ADS Depository. The Bank has made substantial efforts and investments in acquiring the best technology available internationally, to build the infrastructure for a world class bank.

Public Sector Banks

a. State Bank of India and its associate banks called the State Bank Group b. 20 nationalized banks c. Regional rural banks mainly sponsored by public 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 Bank of India 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 25. United Bank of India

CITING OF PAST WORK

This part of the chapter talks about past research studies that were conducted on consumer behavior towards banking services , their attitudes towards different features services and other studies public sector banks and private sector banks. These studies show how consumer attitudes have slowly turned positive with regard to banking and its varied variety of services, be it online banking, ATM, or basic

services like deposit, loan, interest. The research studies covered here are national as well as internationally conducted researches and results obtained from the analysis of such research.

1. Denise K. Conroy in his study titled (Customer satisfaction measures in the public sector: what do they tell us?) attempts to devise customer satisfaction measures, 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 expectations of the public sector and its delivery agent, yet cannot choose another provider.

2.Harry Nowka, Southwestern Oklahoma State University, Nancy Buddy, Southwestern Oklahoma State University, Robert Reeder, Southwestern Oklahoma State 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 comparisons made to the major competitor's customer responses, student customer 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 customer flow. Analysis of spending patterns indicates that food and pool were underutilized. The male/female ratio was a determinate of customer flow.

3. Dawn Iacobucci, Amy Ostrom, Kent Grayson in their study titled(Distinguishing Service Quality and Customer Satisfaction: The Voice of the Consumer) presents 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. they 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 saw fit. 4. Antreas D. Athanassopoulos in his study titled (Customer Satisfaction Cues To Support Market Segmentation and Explain Switching Behavior) examined the 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 individual customers. The performance implications of the customer satisfaction 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. Rengasamy Elango and Vijaya Kumar Gudep in their study titled(A Comparative Study on the Service Quality and
Customer Satisfaction among Private, Public and Foreign Banks) focuses on the service quality and customer satisfaction among the private, public and foreign banks in India. An analysis is carried 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 value-added services and efficient grievance redressal mechanism etc. Apart from the basic statistical tools such as measures of central tendency, The authors also use `factor analysis' and the `One-way Anova' 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 improved significantly during the study period. It is 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.

Chapter III
Company profile: This chapter deals with the overview of HDFC bank and SBH bank. There is a details study about both the banks there achievements, services, functions, mergers, and subsidiaries.

3.1 Overview of SBI

The origin of the State Bank of India goes back to the first decade of the nineteenth 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 1921.

Primarily Anglo-Indian creations, the three 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 modernise 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 Loans Personal Loans Home Loans Two Wheeler Loans New Car Loans Used Car Loans Overdraft Against Car Express Loans Gold Loan Savings Accounts Current Accounts Fixed Deposits

 Cards Access Your Bank

Educational Loan Loan Against Securities Loan Against Property Loans Against Rental Receivables

Credit Cards Debit Cards

NetBanking ATM

3.2 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 crores

Branch network 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, corporates, trusts, governnments, partnerships, financial institutions, mutual funds, insurance companies. The bank also has over 1471 ATMs. In the next few month the number of branches and ATMs should go up substantially.

Profile 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 liberalisation 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. Business focus 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 highest level of ethical standards, professional integrity, corporate governance and regulatory compliance. HDFC Bank's business philosophy is based on four core values Operational Excellence, Customer Focus, Product Leadership and People PRODUCTS AND SERVICES PROVIDED BY HDFC BANK

HDFC Bank mainly provides three kinds of banking services:

Personal Banking NRI Banking Wholesale Banking

The following are the products and services provided by the HDFC bank

HDFC Bank provides loans like Personal Loans , Home Loans , Educational Loans , Two Wheeler Loans , New car Loans, Used Car Loans, Overdraft Against Car, Express Loans, etc.

HDFC Bank provides Credit, Debit and Prepaid Cards to help you meet your financial objectives.

HDFC Bank provides facilities like Mutual Funds , Insurance , General & Health Insurance, Bonds , Financial Planning, Knowledge Center, Equities & 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 a range of products and services that you can choose from to transact smoothly, efficiently and in a timely manner. With HDFC Bank 's payment services, you can bid goodbye to queues and paper work. HDFC 's range of payment options make it easy to pay for a variety of utilities and services. HDFC Bank has designed two programs to make banking easier for the customers and they are

HDFC Bank Preferred Programme HDFC Bank Classic Programme.

HDFC Bank offers Private Banking services to high net worth individuals and institutions. HDFC Bank offers you quick, economical and convenient options to remit and transfer funds to India. Corporate Banking reflects HDFC Bank 's strengths in providing our corporate clients in India, a wide array of commercial, transactional and electronic banking products.

HDFC Bank acts as an active medium between the government and the customers by means of various services Savings Accounts Regular Savings Account Savings Plus Account SavingsMax Account No Frills Account Retail Trust Account Salary Accounts Payroll Classic Regular Premium Defence 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

Chapter IV Data Analysis and Interpretation

This chapter deals with analysis and discussions of the study . For the purpose of analyzing, raw data was summarized in a master table and from this table the results have been carried out. The questions having multiple/ alternative choices were analyzed by taking percentages. In the case of questions on likert scale, the mean scores were calculated. In case of ranking questions the total score has been added and final ranking is given by calculating mean. In case of checklist questions the average of total no. of responses was calculated. In case of explanatory questions, the general suggestions were summarized This chapter analyses the comparative study of customers Satisfaction towards HDFC bank And State bank of India

PRIMARY DATA ANALYSIS:

The figures below show the data collected and the interpretation of all such data.

Table 4.1: Showing the age group of respondents who utilize the services of HDFC bank & SBI bank AGE LESS THAN 25 25-35 35-45 45-55 55 & ABOVE SBI 10 16 12 24 8 (SOURCE: Questionnaire) HDFC 8 24 14 18 6

Fig 4.1: Showing the age group of respondents who utilize the services of HDFC bank & SBI bank

25 20 15 SBI 10 5 0 LESS THAN 25 25-35 35-45 45-55 55 & ABOVE HDFC

(SOURCE: Questionnaire)

Table 4.2: Showing the gender of respondents who utilize the services of HDFC bank & SBI bank

GENDER MALE FEMALE

SBI 56 14

HDFC 54 16

(SOURCE: Questionnaire)

Fig: 4.2 Showing the gender of respondents who utilize the services of HDFC bank & SBI bank

HDFC

FEMALE MALE SBI

10

20

30

40

50

60

(SOURCE: Questionnaire)

Table & fig :4.3 Comparative study of the customers of sbi and hdfc bank regarding their occupation

Occupation
HOUSEWIFE

STUDENT

PROFESSIONAL

BUSINESMAN

SERVICE

0 HDFC SBI SERVICE 24 30

10

15

20

25

30

35 STUDENT 6 16

40

45 HOUSEWIFE 4 6

50

BUSINESMAN 46 12

PROFESSIONAL 10 6

(SOURCE: Questionnaire)

From the above data it can be clearly understood from table 4.3 that the customers that utilize the services from HDFC bank and SBH bank are from occupations like service, business, professions, student, and housewives.

Table:4.4 Comparative study of the customers of sbi and hdfc bank regarding their income INCOME NIL LESS THAN 50000 50000-150000 150000-300000 300000-500000 500000-ABOVE SBI 0 16 14 20 12 8 HDFC 4 8 18 16 18 6

(SOURCE: Questionnaire)

Fig : 4.4 Comparative study of the customers of SBI and HDFC bank regarding their income

Income
SBI 16 0 4 8 18 HDFC 20 16 18 8 6

14

12

(SOURCE: Questionnaire) From the above data (fig: 4.4) it can b interpreted that the customers income group consisting nil income is zero in SBH nil income group are those customers who are students by occupation.

Table: 4.5 Comparative study of most important reason choosing the particular bank

Reason of choosing a particular bank

Location advantage

Net banking facility

ATM service

The excellent service offered by this bank

The brand name of the bank

I have a traditional bank account with the same bank

FACTORS 0 5 10 15 20 Net banking facility 4 6 25 Location advantage 14 8 30

FACTORS 0 0

I have a The excellent traditional bank The brand name service offered account with of the bank by this bank the same bank 6 12 24 24 8 10

ATM service 10 14

(SOURCE: Questionnaire)

From the above data analysis in fig:4.5 the factors affecting in choosing a particular bank for HDFC bank the most important factor is the excellent service offered by the bank and the most important factor for SBI bank is I have a traditional bank account with the same bank

Table 4.6: 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 36 10 24 0 HDFC 42 14 13 1

(SOURCE: Questionnaire) Fig: 4.6 Comparative study of the customers of SBI and HDFC bank regarding the account facilities provided

Account facility availing in the bank

HDFC 1 0 13 10 14 42 24 SBI

NRI account Fixed deposit Current account Savings account

36

(SOURCE: Questionnaire) From the above fig:4.6 we can interpret that the number of savings account is more with HDFC than with SBI and the number of fixed deposits are more with SBI bank than HDF

Table 4.7: 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 14 24 14 18

HDFC 14 18 26 12

(SOURCE: Questionnaire) Fig 4.7: Comparative study of the time period of customers dealing with SBI And HDFC bank

TIME PERIOD
9 8 7 6 5 4 3 2 1 0 5 10 15 HDFC SBI 20 25 30

(SOURCE: Questionnaire)

From the above data analysis we can interpret that most accounts held by HDFC bank is for 3-5 years and the most number of accou nts held by SBI bank is for 1-2 years.

Table 4.8 Comparative 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 (SOURCE: Questionnaire) Fig: 4.8 Comparative study of reason that make customer to typically visit bank branch SBI 28 4 14 24 HDFC 34 6 10 20

Visit To The Bank

SBI 34 28 14 4 6 24 10 20 HDFC

To make a deposit

To get advice for investment options

To inquire about a balance

To withdraw cash

(SOURCE: Questionnaire) From the above data interoperated in figure 4.8 it is clearly observed that most of the customers visiting HDFC bank is to make a deposit. whereas, the reason for visit for most of the SBI customers is to withdraw cash.

Table: 4.9 Comparative study of most satisfying facility Offered by them

Most Satisfying Facility

14

12

10 Number of customers

ATM

Loan

SBI HDFC

13 10

7 4

Early cheque clearance 2 8

Preparati on of drafts 3 2

Interest package 3 3

Net banking 3 5

Phone banking 4 3

(SOURCE: Questionnaire)

Table 4.10 . Customers want to shift to another bank if they are provided with better service

CHANGE YES NO

SBI 6 29

HDFC 9 26

(SOURCE: Questionnaire) Fig: 4.10 Customers want to shift to another bank if they are provided with better service

Shift To Another Bank If Provided Better Service

YES 29 NO

26

SBI

HDFC

(SOURCE: Questionnaire)

Table 4.11: . 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

(SOURCE: Questionnaire) Fig 4.11: Comparison regarding the overall satisfaction of the customers

Overall Satisfaction
SBI 7 6 12 18 HDFC

8 3

3 0

(SOURCE: Questionnaire)

Chapter 5

5.1 Suggestions and Recommendations

1. Both the customers from SBI and HDFC bank have suggested that the bank should open one of its branch in industrial area like focal point. 2. One of the most common suggestion was to lower down the minimum balance required in the saving s account. 3. Staff should be more co-operative to the customers. 4. Customers were not fully aware of the services and the various charges which they have to pay. Therefore Banks should try to give some more information to its existing customers

Assumptions The project report is based on the preference of the customers and the level of satisfaction towards SBI and HDFC bank. During project we come to know that both the banks are highly preferred by the customers but their preference is different up to some extend towards the service of these banks. Following are the assumptions of the project.

1. Range of the survey is limited to Patial city. It may not hold the same result in the different city. 2. The sample size for the survey is restricted up to 70. Out of Which 35 questionnaire was filled by the customers of SBI and 35 was filled by customers of HDFC bank.

3. Survey is done in a very short period of time. This may have impact on the final result of the survey.

Chapter VI
Appendix

QUESTIONNAIRE CUSTOMER PREFERENCE TOWARDS SBI AND HDFC BANK

1. Name____________________

2. Gender

Male

Female

3. Age Less than 25 35-45 55-above 25-35 45-55

4. Occupation

Service Professional Housewife

Business Student

5. Income

Nil 50,000 to 1,50,000 3,00,000 to 5,00,000

Less than 50,000 1,50,000 to 3,00,000 5,00,000 and above

6. Bank you are dealing with

HDFC

SBI

7. What was the single most important reason that you chose this particular Bank

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 Any other please specify_______________________________________

8. Which account facility you are availing in the Bank

Savings account Fixed deposit

Current account NRI account

9. Since how many years you are dealing with this Bank

Less than 1 year 3 to 5 years

1 to 2 years More than 5 years

10. What is the main reason that you typically visit your bank branch (please choose the single most important reason)

To make a deposit To get advice for investment options To inquire about a balance To withdraw cash Any other please specify______________________________________________

11. How would you rate the following banking service quality on scale of 1-5 provided by bank where 1-excellent, 2-good, 3 above-average, 4-average, 5-below average

Access Confidentiality Reliability Responsiveness

Communication Courtesy Security Waiting time

12. Which facility satisfies you most

ATM Loan Early cheque clearance Preparation of drafts

Interest package Net banking Phone banking

13. If you are provided with better services by optional bank. Would you like to move to other bank.

Yes

No

14. 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

BIBLIOGRAPHY

WEBSITE USED

www.hdfcindia.com www.statebankofindia.com http://www.banknetindia.com/banking/index_1.htm http://www.asiatradehub.com/india/banking/finance.html http://www.en.wikipedia.org/wiki/Standard_Chartered_Bank http://www.finance.indiamart.com/investment_in_india/standard_chartered_bank. http://www.essays.se/about/literature+review+of+customer+satisfaction/ http://www.emeraldinsight.com html

http://www.essays.se/about/literature+review+of+customer+satisfaction

http://www.essays.se/about/literature+review+of+customer+satisfaction/?startrecord6

BOOKS FOLLOWED

Research methodology by C.R. Kothari

NEWS PAPERS

Business standard

Economic Times