FINAL EVALUATION OF MANAGEMENT THESIS

REPORT
BY
NAZMA SK
7NBGU017

Under the esteemed guidance of

Mr. SITA RAMAIAH, P.GURU PRASAD,

Center Head, Faculty Member,
ICFAI National College, ICFAI National College,
Guntur. Guntur.
 A COMPARITIVE STUDY ON CUSTOMER
SATISFACTION ON BUSINESS LOANS OFFERED BY
HDFC BANK AND ICICI BANK.

BY
NAZMA SK
7NBGU017
 COMPANY PROFILE
HDFC BANK
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.

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 Rs. 1,141 crores. 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.Currently HDFC Bank has 753
branches, 1,716 ATMs, in 320 cities in India.
 INTRODUCTION

 Business loans are meant for the people who are going to start a new
business and for the people who had already started their business and
wants to expand their business or to meet their current requirements.And
these type of loans are encouraging people to become entrepreneurs and
help them to build their future. Now a days business loans are known as
Working capital loans.
 Short term business loan
A short term business loan refers to a loan that should be reimbursed
within a year. Small businesses may experience temporary financial
deficits and shortfalls. This is where the need for short term business
loans fit in.
Short term business loans are used for minor business needs. The
borrowed money may be used by the small business owner for
purchasing supplies, stock or for paying employees' wages etc Short
term loan is secured for short term repayment. The repayment is
scheduled for a short period of time. Usually less than one year. There
maturity period is usually vary from 90-120 days to one to three years.
 PURPOSE OF THE STUDY
 The main purpose of the study is to know the customer
satisfaction on BUSINESS loans offered by HDFC bank
and ICICI bank , Guntur.
 In the present competitive environment it is very crucial to
every business firm to ensure satisfaction to its customers.
According to one survey it was found that it costs five times
more to attract a new customer than to retain an existing
customer. So with all these parameters taking into
consideration one can say that it is very important to
provide goods and services that satisfy customers needs or
wants irrespective of the industry or scale of the business
in which a firm is operating.
 Here the main purpose of the survey is to know the various
factors that are very important in satisfying the customers
needs and to know how HDFC and ICICI banks are
ensuring its customers satisfaction.
 OBJECTIVES
 To know the policy and performance of business loan at Guntur
 To know the perception of the customers towards Business loans of
HDFC bank and ICICI bank.
 To know whether it is positive opinion or negative
 To know the procedure of business loan
 To know the performance whether it is doing well or not
 To know the what are the problems facing by a banker while
processing
 findings
 HDFC bank customers are very much aware about business loans
than ICICI bank
 The customers who had taken working capital loan in HDFC are more
satisfied than ICICI bank customers
 The customers are feeling that these working capital loans are very
much helpful to them
 In present scenario there is lot of boom for these working capital loans
 The people prefer public sector banks more than the private sector
banks for security purpose
 These business loans are encouraging entrepreneurs
 It was found that 54% of customers preferred HDFC bank and 46%
customers preferred ICICI bank to take business loans.
 SUGGESIONS
 The company should give guidance for speedy
approval and sanction of the business loans
 even though most of the people aware of these
working capital loans most of the people don’t
know the procedure so it is better to create much
more awareness among the customers
 there is much more necessity to provide more
facilities to customers
 Bank has to take more steps for customer
convenience
 EMPERICAL ANALYSIS
 72% of the customers are aware of the business loans offered by
HDFC bank. In the case of ICICI bank only 48% of the customers
know about the business loans offered by them
 out of 18 customers 12 had taken business loan in HDFC bank
and out of 12 customers 8 had taken business loan in ICICI bank.
 54% customers preferred HDFC bank to take business loans and 46%
prefer ICICI bank to take business loans
 HDFC is charging 12% - 13% interest rate on business loans, where
as ICICI is charging 12% - 13.5%.
 75% of customers had given positive feed back on customer service of
HDFC bank and 25% had given negative feedback. 60% of customers
had given positive feed back about ICICI bank and 40% had given
negative feedback
 CONCLUSION
 During my study on HDFC Bank and ICICI bank I came to
know that HDFC bank is providing better business loan
services compared ICICI bank
 The impact of global/external economic conditions
creating impact on financial system of India, and reserve
bank, central government proposals of controlling inflation
rates by hiking the CRR,SLR,REPO RATES which creates
additional burden to clients and banks.
 HDFC Bank has been design keeping mind needs of
customers who seek distinct financial services information
and advice on various business loan services and ICICI
bank should have to take care of customer services to get
good value among people.
 This banks by providing business loans not only
helping those people who had already start their
businesses. These banks are encouraging people to
become enterapreneurs.
BY
NAZMA SK
7NBGU017