A

PROJECT REPORT
ON

“SERVICE QUALITY OF HDFC BANK”

Submitted in the partial fulfillment for the

Award of the degree of
Master of Business Administration

UNDER THE GUIDANCE OF:

Mr. Sunil Kumar

(Lect. In Management Dept.)

SUBMITTED BY:
Manisha Gahlawat
Roll no. -12-MBA-09

SESSION-2012-14

Ganga Institute OF Technology and Management

1
 Kablana (Jhajjar)

CERTIFICATE

This is to certify that Miss. Manisha Gahlawat student ofGanga Institute OF

Technology And Management has completed her Project report on
“SERVICE QUALITY OFHDFC BANK” in the year 2012-2014in the
Partial fulfillment for the award of degree of Master of Business
Administration. She has successfully completed the project under my
constant guidance and support.

Signature of Project Guide

(Mr. Sunil Kumar)

2
 DECLARATION

I hereby declare that the Project report titled “SERVICE QUALITY OF

HDFCBANK” is my original work and has not been published or submitted for

anydegree, diploma or other similar titles elsewhere. This has been undertaken

for the purpose of partial fulfillment for the award of degree of Master of

Business Administration at Ganga Institute of Technology and Management.

Date:MANISHA GAHLAWAT

Roll no.:12-MBA-09

3
 PREFACE

This project report attempts to bring under one cover the entire hard work and

dedication put in by me in the completion of the project work on Service

Quality of HDFC bank.

I have expressed my experiences in my own simple way. I hope who goes

through it will find it interesting and worth reading. All constructive feedback is

cordially invited.

4
 ACKNOWLEDGMENT

It is really a matter of pleasure for me to get an opportunity to thank all the

persons who contributed directly or indirectly for the successful completion

of the project report, “Service Quality of HDFC bank”.

First of all I am extremely thankful to my college Ganga Institute OF

Technology And Management for providing me with this opportunity and

for all its cooperationand contribution. I also express my gratitude to my Project

mentor and guideMr. Sunil Sharma. I am highly thankful to our respected

project guidefor giving me the encouragement and freedom to conduct my

project.

I am also grateful to all my faculty members for their valuable guidance and
suggestions for my entire study.

I would also like to thank the HDFC team for extending their valuable time
and cooperation.

Manisha Gahlawat

5
Roll No.: 12-MBA-09

6
 INDEX

CONTENTS PAGE NO.

1. INTRODUCTION

2. LITERATURE REVIEW

3. COMPANY PROFILE

4. SERVICE QUALITY IN BANKS

5. RESEARCH OBJECTIVE

6. RESEARCH METHODOLOGY

7. DATA ANALYSIS

8. FINDINGS OF THE REPORT

9. CONCLUSION

10.RECOMMENDATIONS

11. ANNEXURE: BIBLIOGRAPHY

12. QUESTIONNAIRE

7
Service with a smile:

Today’s finicky banking customers will settle for nothing less. The customer has

come to realize somewhat belatedly that he is the king. The customer’s choice of

one entity over another as his principal bank is determined by considerations of

service quality rather than any other factor. He wants competitive loan rates but at

the same time also wants his loa n or credit card application processed in double

quick time. He insists that he be promptly informed of changes in deposit rates

and service charges and he bristles with „customary rage‟ if his bank is slow to

redress any grievance he may have. He cherishes the convenience of impersonal

net banking but during his occasional visits to the branch he also wants the

comfort of personalized human interactions and facilities that make his banking

experience pleasurable. In short he wants financial house that will more than just

8
clear his cheque and updates his passbook: he wants a bank that cares and

provides great services.

So does HDFC bank meet these heightened expectations? What are the customers‟

perceptions of service quality of the banks? Which dimension of service quality of

HDFC bank is performing well? To find out answers to these questions I

undertook a survey of 2 branches of HDFC bank.

A lot of surveys have been done in the past to understand the aspect of customer

satisfaction and to find out the customer friendly banks. My research is conducted

to find out “SERVICE QUALITY OF HDFC BANK”.

9
A Research Article entitled “Housing Credit Situation in Eighties” by Lall Vinay

(1984)

He has focused attention upon ‘formal factor’ (Permanent Construction) which served

10
mainly to the HIG and MIG, the loan meets only 47% of the price of the house, forcing the
borrowers to make very large down payments. Also the price of a typical house was above 3
times the annual families’ income of the borrowers. In spite of, the entire system of housing
allocation and credit the supply of affordable funds was much smaller than demand. Thus, large
growth in urban population and the historically low priority given to housing, supply falls very
short of demand and need.

The Research Study entitled “Housing in the New Millennium: A Home Without

Equity is Just a Rental with Debt” by Joshua Rosner (2001)

He studied the prospects of the U.S. housing / mortgage sector over the next several
years. Based on his analysis, he believes that, there are elements in place for the housing
sector to continue to experience growth well above GDP. However, he believes that there are
risks that can materially distort the growth prospects of the sector. Specifically, it appears that a
large portion of the housing sector’s growth in the 1990’s came from the easing of the credit
underwriting process. Such easing includes:

The drastic reduction of minimum down payment levels from 20% to 0%.
A focused effort to target the “low income” borrower.

A research article entitled “Housing Problem and Public Action: Continued

Incompatibility Experience from a South Indian State” by M. Mahadeva (2004).

In this article, the author has analysed the nature and distribution of the housing problem in

Karnataka and examined how the state has addressed this issue. In particular, it considers the

strategies adopted during the 90s and identifies a number of failures including the task force on

housing. Some of the major weaknesses, pertaining to incidence by type and by rural-urban areas,

on approaches, on financial requirements and issue of development and redevelopment are

examined to propose alternative policy strategies to effectively address the housing problem in the

state.

A study entitled “Performance of Housing Finance Companies” by Brar

Jasmindeep et.al. (2005)

11
 The objectives of this study were: to study the operational performance, and the
financial performance of the selected institutions.
The study covers three institutions viz. HDFC, LIC & PNB. The study is based on
secondary data that have been collected from the annual reports and web sites of the
institutions selected under study. It covers the period from 1990-91 to 2002-03. The
performance of the selected institutions has been studied by using percentages,
compound growths rates and various ratios.

A Paper entitled “Retail Banking – Emerging Issue in Home Loan” by Rao K. N.

et.al. (2005)

In this paper the authors revealed that during 2002-03 housing loans by banks grew at a

hefty growth rate of more than 100%. The factors that contributed to this aggressive growth in the

portfolio of housing loans of banks and HFC are: Tax intensives on repayment of principal and

interest, rising income level of middle class, falling interest rate, stable real estate prices, easy

availability of housing loans, low returns on the investment opportunities available in the market.

They also concluded that although there is strong growth in housing loans by financial situations in

India, we are still behind the developed countries in terms of housing loans to GDP ratio. In India it is

around 2.5% compared to 57% in the UK and 54% in the US.

A Research Article entitled “Housing Loan Frauds in Banks: Some Precautionary

Measures” by Phogat M. (2006)

This article gives the measures for the housing loan frauds in banks. The author
concluded that housing for all envisaged 2 million houses every year out of which 0.7
million are in the urban sector. Government provided certain relief under Income Tax Act. It
motivated many people to avail housing loan. The author thinks that different frauds
committed on various banks can be divided into the following two categories. I.e. Pre
sanction and Post Sanction. KYC related due weakness in pre inspection, Benami A/c,
forged title deeds, by selling same flat to different people, inflated salary certificate, filing of
IT return for the last three years in one lot and particularly by paying a nominal amount of
tax, valuation of the property is manipulated to manage margin money are post sanction

12
fraud.

A Paper entitled “Housing Finance – A Global Perspective” by Rao K.N. (2006)

According to Rao, housing finance is a long term proposition involving many risks for the

lenders, borrowers and even for the economy in general. As housing finance is a long term game, it

requires proper asset-liability management strategy, the borrowers also face interest rate risk,

especially when they are locked in fixed rates when interest rates are falling and floating rates are

rising. The author mentions in this article that home loans have been registering exponential growth

in India during the last six years. Easy liquidity conditions, low interest rates, availability of tax

shelters on repayment of principal and interest surging demand from middle income group

borrowers, lower regulatory capital, the comfort of tangible security have all collectivity contributed to

the spurt in home loans. HDFC, ICICI and SBI are the major players in disbursement of home loans.

A Paper entitled “Is Housing Finance Safe as House? Or Delinquency in Housing

Finance” Authored by Srinivas S.P. (2006)

The study revealed that disbursement of home loan increased at increasing

growth rate during the growth rate of disbursement in 2000-01 compared to the earlier
year was 13.7% which increased up to 76% in 2002-03. The reasons behind the growth
in housing loans are, Easy availability of housing loans

 Growing population

 Nuclear family system

 Newer segments for finance

 Urbanization of Indian economy

 Shortage of dwelling units

 Declining of cost of house to income ratio etc and,

 Tax benefits.

13
A Research Study entitled “Housing Advances and Commercial Banks: A Review”

Authored by Vimala P. (2007)

The objectives of the study were:

 To review the housing advances of commercial banks in Kerala.

 To compare the performance of different bank groups in respect of

Housing advances.

The study covered a period of seven years from March 2000 to March 2006 and the

secondary data are used in the study. For the purpose of the study, commercial banks are grouped

into four categories. The study revealed that there is no significant difference in the growth rate of

housing advances by different bank groups in state. Kruskal Wallis (H-Test) was applied to

arrive at this conclusion. The amount of housing loan disbursed by RRB which was ` 6.09

crore in 1999-2000 rose to 236.35 crore in 2005-06 showing a CGR of 85% which was the

highest amount of all categories.

A Research Paper entitled “Risk in Real Estate Financing” Authored by Bagchi S.

(2008)

The author has analyzed the factors affecting risk and suggests that real estate

financing will be the order of the day in a new age bank / Institution lending in the

interest of the development of the country. Real estate financing is no longer

“untouchable” as it used to be before 1990’s. It is also a fact that this sector contains a

higher order risk of “default” and lower order scope of eventual recovery since the fate

of real estate is interwoven with macro-economic fundamentals and volatility of asset

prices.

A Research Paper entitled “Prospects and Problems of Housing Microfinance in

India: Evidence from “Bhavanashree” Project in Kerala State” Authored by Manoj
P.K. (2010)

14
 He has examined the exact nature of housing microfinance in India, it’s problems
and prospects and particularly deterrents to its growth, with a view to suggesting
suitable remedial strategies for its faster development; based on an empirical study of
“Bhavanshree”. The Objectives of this study were:

To make an overall study of the housing microfinance initiatives the world over
their performance track record, trends and patterns.

To critically study the extent and nature of housing problem in India, and to
examine the need for alternative financing models.

A Research Study entitled “A Study on Customers Preference and Satisfaction of

Four Basic Banking Services in Coimbatore and Erode” Authored by Vetrivel T.
(2010)

The objectives of the study were:

To know the overall satisfaction and dissatisfaction levels of bank customers with
respect to four-dimensional banking services –Loan services, deposit scheme
services, Insurance services and value added services.

To know the customer’s opinion and preferences about various supporting

Factors of four dimensional banking services.

For this purpose, 300 customers of two major cities of Coimbatore and Erode
were selected at random and the study period was for nine months. (August 2009 to
April 2010). Chi-square test was used to analyze the data.

15
16
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.

HDFC Bank comprises of a dynamic and enthusiastic team determined to accomplish the vision

of becoming a World-class Indian bank. HDFC bank’s business philosophy is based on our four

core values - Customer Focus, Operational Excellence, Product Leadership and People. They

believe that the ultimate identity and success of their bank will reside in the exceptional quality

of people and their extraordinary efforts. They are committed to hiring, developing, motivating

and retaining the best people in the industry.

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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.

MISSION STATEMENT OF HDFC BANK

 World Class Indian Bank.

 Benchmarking against international standards.

 To build sound customer franchises across distinct businesses

 Best practices in terms of product offerings, technology, service levels, risk

management and audit & compliance

VISION STATEMENT OF HDFC BANK

18
The HDFC Bank is committed to maintain the highest level of ethical standards, professional

integrity and regulatory compliance. HDFC Bank’s business philosophy is based on four core

values such as:-

19
1. Operational excellence.

2. Customer Focus.

3. Product leadership.

4. People.

The objective of the HDFC Bank is to provide its target market customers a full range of

financial products and banking services, giving the customer a one-step window for all

his/her requirements. The HDFC Bank plus and the investment advisory services programs

have been designed keeping in mind needs of customers who seeks distinct financial

solutions, information and advice on various investment avenues.

BUSINESS STRATEGY

 Increasing market share in India’s expanding banking

 Delivering high quality customer service

 Maintaining current high standards for asset quality through disciplined cred
it risk management

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

DISTRIBUTION NETWORK

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over

3251 branches in India. All branches are linked on an online real- time basis. Customers in

over 120 locations are also serviced through Telephone Banking. The Bank's expansion

plans take into account the need to have a presence in all major industrial and commercial

centers where its corporate customers are located as well as the need to build a strong retail

customer base for both deposits and loan products. Being a clearing/settlement bank to

various leading stock exchanges, the Bank has branches in the centers where the NSE/BSE

has a strong and active member base.

The Bank also has a network of about over 3251 networked ATMs across these cities.

Moreover, HDFC Bank's ATM network can be accessed by all domestic and international

Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge

cardholders.

PROMOTER

HDFC is India's premier housing finance company and enjoyis 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 a market leader in

mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC
21
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

environment.

MANAGEMENT

Mr. C.M. Vasudev has been appointed as the Chairman of the Bank with effect from 6th

July 2010 subject to the approval of the Reserve Bank of India and the shareholders. Mr.

Vasudev has been a Director of the Bank since October 2006. A retired IAS officer, Mr.

Vasudev has had an illustrious career in the civil services and has held several key

positions in India and overseas, including Finance Secretary, Government of India,

Executive Director, World Bank and Government nominee on the Boards of many

companies in the financial sector.

The Managing Director, Mr. Aditya Puri, has been a professional banker for over 25

years and before joining HDFC Bank in 1994 was heading Citibank's operations in

Malaysia.

The Bank's Board of Directors is composed of eminent individuals with a wealth of

experience in public policy, administration, industry and commercial banking. Senior

executives representing HDFC are also on the Board.

Senior banking professionals with substantial experience in India and abroad head

various businesses and functions and report to the Managing Director. Given the

professional expertise of the management team and the overall focus on recruiting and

22
retaining the best talent in the industry, the bank believes that its people are a significant

competitive strength.

TECHNOLOGY

HDFC Bank operates in a highly automated environment in terms of information

technology and communication systems. All the bank's branches have online connectivity,

which enables the bank to offer speedy funds transfer facilities to its customers. Multi-

branch access is also provided to retail customers through the branch network and

Automated Teller Machines

(ATMs).

The Bank has made substantial efforts and investments in acquiring the best technology

available internationally, to build the infrastructure for a world class bank. The Bank's

business is supported by scalable and robust systems which ensure that our clients always

get the finest services we offer.

The Bank has prioritized its engagement in technology and the internet as one of its key

goals and has already made significant progress in web-enabling its core businesses. In

each of its businesses, the Bank has succeeded in leveraging its market position, expertise

and technology to create a competitive advantage and build market share.

QUALITY POLICY

SECURITY: The bank provides long term financial security to their policy. The

bankdoes this by offering life insurance and pension products.

23
 TRUST: The bank appreciates the trust placed by their policy holders in the

bank.Hence, it will aim to manage their investments very carefully and live up to

this trust.

INNOVATION: Recognizing the different needs of our customers, the bank offers

arange of innovative products to meet these needs.

INTEGRITY

CUSTOMER CENTRIC

PEOPLE CARE “ONE FOR ALL AND ALL FOR ONE”

TEAM WORK

JOY AND SIMPLICITY

BUSINESS

HDFC Bank offers a wide range of commercial and transactional banking services and

treasury products to wholesale and retail customers. The bank has three key business

segments:

Wholesale Banking Services

The Bank's target market ranges from large, blue-chip manufacturing companies in

the Indian corporate to small & mid-sized corporates and agri-based businesses. For

these customers, the Bank provides a wide range of commercial and transactional

banking services, including working capital finance, trade services, transactional

services, cash management, etc. The bank is also a leading provider of structured

24
 solutions, which combine cash management services with vendor and distributor

finance for facilitating superior supply chain management for its corporate

customers. Based on its superior product delivery / service levels and strong

customer orientation, the Bank has made significant inroads into the banking

consortia of a number of leading Indian corporates including multinationals,

companies from the domestic business houses and prime public sector companies. It

is recognized as a leading provider of cash management and transactional banking

solutions to corporate customers, mutual funds, stock exchange members and banks.

Retail Banking Services

The objective of the Retail Bank is to provide its target market customers a full range of

financial products and banking services, giving the customer a one-stop window for all

his/her banking requirements. The products are backed by world-class service and

delivered to customers through the growing branch network, as well as through alternative

delivery channels like ATMs, Phone Banking, Net Banking and Mobile Banking.

The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus

and the Investment Advisory Services programs have been designed keeping in mind

needs of customers who seek distinct financial solutions, information and advice on

various investment avenues. The Bank also has a wide array of retail loan products

including Auto Loans, Loans against marketable securities, Personal Loans and Loans for

Two-wheelers. It is also a leading provider of Depository Participant (DP) services for

retail customers, providing customers the facility to hold their investments in electronic

form.

25
HDFC Bank was the first bank in India to launch an International Debit Card in association

with VISA (VISA Electron) and issues the MasterCard Maestro debit card as well. The Bank

launched its credit card business in late 2001. The Bank is well positioned as a leader in

various net based B2C opportunities including a wide range of internet banking services for

Fixed Deposits, Loans, Bill Payments, etc.

Treasury

Within this business, the bank has three main product areas - Foreign Exchange and

Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the

liberalization of the financial markets in India, corporates need more sophisticated risk

management information, advice and product structures. These and fine pricing on various

treasury products are provided through the bank's Treasury team.

26
27
In the days of intense competition, the banks are no different from any other

consumer marketing company. It has become essential for the service firms in

general and banks in particular to identify what the customer's requirements are

and how those customer requirements can be met effectively. In the days where

product and price differences are blurred, superior service by the service provider

is the only differentiator left before the banks to attract, retain and partner with

the customers. Superior service quality enables a firm to differentiate itself from

its competition, gain a sustainable competitive advantage, and enhance

efficiency .The benefits of service quality include increased customer satisfaction,

improved customer retention, positive word of mouth, reduced staff turnover,

decreased operating costs, enlarged market share, increased profitability, and

improved financial performance. The construct of service quality has therefore

been a subject of great interest to service marketing researchers.

Service quality has been defined by various experts in various ways as: 'Service

Quality is the difference between customers' expectations for service

performance prior to the service encounter and their perceptions of the service

received.' According to Gefan „Service quality is the subjective comparison that

customers make between the qualities of service that they want to receive and

what they actually get.' Parasuraman says, 'Service quality is determined by the

differences between customer's expectations of services provider's performance

and their evaluation of the services they received.

The most popular dimensions of service quality--features five dimensions:

tangibles,reliability, responsiveness, empathy, and assurance. The tangibles

28
dimension corresponds tothe aforementioned physical environment aspect, the

reliability dimension corresponds to the service outcome aspect, and the

remaining three represent aspects of interaction quality.

Both the costs and the revenue of firms are affected by repeat purchases, positive

word-of- mouth recommendation, and customer feedback. Moreover, there is

strong evidence that service quality has either a direct influence on the behavioral

intentions of customers and/or a n indirect influence on such intentions, mediated

through customer satisfaction.

RATER is an instrument that might be used to define and measure banking

service quality andto create useful quality-assessment tools.

The RATER may finally provide the following benefits to the HDFC bank:

1. It is the first approach to add and mix the customers‟ religious beliefs and

cultural values with other quality dimensions.

2. It provides for multi- faced analysis of customer satisfaction.

3. It links quality with customers‟ satisfaction and service encounter.

4. It provides information at several levels, already organized into meaningful

groupings.

5. It is a proven approach, which results in usable answers to meet customers‟

needs.

6. It is empirically grounded, systematic and well documented.

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Banks managers can use the RATER model and its dimensions first to

identify the following issues:

To identify those areas where improvement should be made and resources can be

allocated. For instance, they need to know the level of quality in their banks and

they can manipulate to make bank-wide improvement in quality performance.

Also they can use benchmarking to compare their performance and other banks‟,

which have already implemented quality program that will help to priorities the

quality management efforts.

DIMENSIONS OF SERVICE QUALITY

TANGIBILITY: This dimension deal with modern looking equipment’s and

visual appealing part ofbanks.

RELIABILITY: This dimension has a direct positive effect on perceived

service quality andcustomer satisfaction in banking institutions. Banks must

provide error free service and secure online transactions to make customers

feel comfortable.

RESPONSIVENESS: Customers expect that the banks must respond their

inquiry promptly.Responsiveness describes how often a bank voluntarily

provides services that are important to its customers. Researchers examining the

responsiveness of banking services have highlighted the importance of perceived

service quality and customer satisfaction.

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ASSURANCE: Customer expects that the bank must be secured and the
behavior of the employeesmust be encouraging.

EMPATHY: individual attention, customized service and convenient banking

hours are very muchimportant in today’s service.

In order to achieve better understanding of service quality in banking sector,

the proposed five service quality dimensions are conceptualized to illustrate

the overall service quality of the banking in relation to customers‟ and

providers perspective.

Performing the service accurately is perhaps the most important factor in service

quality excellence. The cost of performing the service inaccurately includes not

only the cost of redoing the service but also the cost associated with negative

word-of-mouth generated by displeased customers. In case of services, the

factory is the field. Again, services are intangible and hence the criteria for

flawless services are more subjective than the criteria for defect- free tangible

31
32
RESEARCH OBJECTIVE

The objective of the study is as follows:

 To examine the essential dimensions of service quality i.e. RATER- Reliability,

Assurance, tangibles, empathy and responsiveness of HDFC bank and its effect on customers

Satisfaction.

 To know which service quality dimension of the bank is performing well.

 To identify which dimension of service quality needs improvement so that the quality of
service of HDFC banks is enhanced

IMPORTANCE AND SCOPE OF THE STUDY

The study would try to throw some insights into the existing services provided by the banks,

perceptions and the actual service quality of the bank. The results of the study would be able

33
to recognize the lacunae in the system and thus provide key areas where improvement is

required for better performance and success ratio. In the days of intense competition, superior

service is the only differentiator left before the banks to attract, retain and partner with the

customers. Superior service quality enables a firm to differentiate itself from its competition,

gain a sustainable competitive advantage, and enhance efficiency.

34
SCOPE OF STUDY

The scope of this research is to identify the service quality of HDFC bank. This research is based

on primary data and secondary data. This study only focuses on the dimensions of service quality

i.e. RATER. It aims to understand the skill of the company in the area of service quality that are

performing well and shows those areas which require improvement. The study was done taking

two branches of HDFC bank into consideration. The survey was restricted to the bank customers

in Jhajjar only.

35
RESEARCH METHODOLOGY

DATA SOURCE

Primary Data:

The primary data was collected by means of a survey. Questionnaires were prepared and

customers of the banks at two branches were approached to fill up the questionnaires. The

questionnaire contains 20 questions which reflect on the type and quality of services provided by

the banks to the customers. The response of the customer and the is recorded on a grade scale of

strongly disagree, disagree, uncertain, agree and strongly agree for each question. The filled up

information was later analyzed to obtain the required interpretation and the findings.

Secondary Data:

In order to have a proper understanding of the service quality of bank a depth study was done

from the various sources such as books, a lot of data is also collected from the official

websites of the banks and the articles from various search engines like Google, yahoo search

and answers.com.

RESEARCH DESIGN

The research design is exploratory till identification of service quality parameters. Later it

becomes descriptive when it comes to evaluating customer perception of service quality of the

banks.

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Descriptive research, also known as statistical research, describes data and

characteristicsabout the population or phenomenon being studied. Descriptive research

answers the questions who, what, where, when and how.

Although the data description is factual, accurate and systematic, the research cannot describe

what caused a situation. Thus, descriptive research cannot be used to create a causal

relationship, where one variable affects another. In other words, descriptive research can be said

to have a low requirement for internal validity.

RESEARCH SAMPLE

SAMPLING PLAN:

Since it is not possible to study whole universe, it becomes necessary to take sample from

the universe to know about its characteristics.

 Sampling Units: Customers of HDFC bank

 Sample Technique: Random Sampling.

 Research Instrument: Structured Questionnaire.

37

SAMPLE SIZE:

The work is a case of HDFC Bank, one of the largest banks of Indian banking industry

together representing over 25 per cent of the market share of Indian banking space. The

survey was conducted in the city of Delhi NCR with two branches of HDFC Bank, with 50

customers as respondent.

DATA COLLECTION TOOL

Data was collected through a structured questionnaire. Likert scale technique is used. The

format of a typical five- level Likert item is:

1. Strongly disagree

2. Disagree

3. Neither agree nor disagree

4. Agree

5. Strongly agree

Likert scaling is a bipolar scaling method, measuring either positive or negative response to a

statement. For evaluation of service quality of HDFC bank. Service quality dimension of

38
reliability, assurance, tangibility, empathy and responsiveness is used in order to evaluate the

actual service quality of HDFC bank.

ANALYSIS PATTERN:

The data after collection has to be processed and analyzed with the outline laid for the purpose
at the time of developing the research plan. This is essential for a scientific study and for
insuring that we have all relevant data for making contemplated comparison and analysis.
Technically speaking processing implies Editing,Coding, Classification and Tabulation of
collected data so that they are amenable to analysis. The term analysis refers to the computation
of certain measures along with searching for patterns of relationship that exist among data
groups. To analyze the data percentages, pie charts, graphs etc. are used.

Editing: It involves a careful scrutiny of the completed questionnaire. It is the process of

examining the collected raw data to detect error and omission to correct these when possible.

Data Tabulation:

It involves arranging the data in concise and logical order. It involves summarizing raw data
and displaying the same in compact form.

Analysis:

After tabulation we analyze the data with the help of pie chart because in pie chart it was easy to

Understand everything in percentage as well as it gives better picture.

RESEARCH LIMITATIONS

The study is only for the HDFC Bank confined to a particular location and a very small

sample of respondents. Hence the findings cannot be treated as representative of the entire

banking industry.

The study can also not be generalized for public and private sector banks of the country.

39
 Respondents may give biased answers for the required data. Some of the respondents did not

like to respond.

Respondents tried to escape some statements by simply answering “neither agree nor

disagree” to most of the statements. This was one of the most important limitations faced, as

it was difficult to analyses and come at a right conclusion.

In our study we have included 50 customers of bank because of time limit.

40
41
TANGIBILITY DIMENSION OF SERVICE QUALITY
Ques.1 HDFC bank has modern looking equipment.

PERCENTAG CUMULATIV
SCALE FREQUENCY E E
PERCENTAG
E

STRONGLY DISAGREE 5 10 10

DISAGREE 4 50 60

UNCERTAIN 16 32 92

AGREE 25 8 100

TOTAL 50 100

HDFC bank has modern looking

equipment’s

25

20

15

10

0
STRONGLY DISAGREE DISAGREE UNCERTAIN AGREE

INTERPETATION
HDFC bank has modern- looking and hi- tech equipment’s. Here analysis show that most of the
respondents agreed with this statement. Among the total respondents 50% agreed, 32% were

42
neutral and 8% disagreed. After analysis I found that majority of the respondents think that
HDFC Bank do not have modern looking equipment’s or no hi-tech equipment’s.

Ques.2 The bank's physical features are visually appealing.

PERCENTAG CUMULATIV
SCALE FREQUENCY E E
PERCENTAG
E

DISAGREE 4 8 8

UNCERTAIN 29 58 66

AGREE 17 34 100

TOTAL 50 100

The bank's physical features are visually

appealing

30

25

20

15

10

0
DISAGREE UNCERTAIN AGREE

INTERPRETATION

43
HDFC bank’s physical facilities are visually appealing. This means 58% people were uncertain

about this statement. Out of the total respondents only 4% disagreed and no one strongly

agreed or disagreed with the statement. 17% people agreed that HDFC bank’s physical

facilities are visually appealing.

Ques.3 The bank's reception desk employees are neat appearing.

PERCENTAG CUMULATIV
SCALE FREQUENCY E E
PERCENTAG
E

DISAGREE 5 10 10

UNCERTAIN 21 42 52

AGREE 18 36 88

STRONGLY AGREE 6 12 100

TOTAL 50 100

44
 The bank's reception desk
employees are neat appearing
25

20

15

10

0
DISAGREE UNCERTAIN AGREE STRONGLY AGREE

INTERPRETATION
HDFC bank’s employees appear neat. Here analysis shows that majority were neutral. Among

the total respondent 21 respondents were neutral, 18 people agreed and 6 respondents strongly

agreed. The rest disagreed.

45
Ques.4 Materials associated with the service (such as pamphlets or statements) are visually

appealing at the bank.

P
F E
R R
E C
Q E
S U N
C E T
A N A
L C G
E Y E CUMULATIVE

PERCENTAGE

D
I
S
A
G
R
E
E 7 14 14

U
N
C
E
R
T
A
I
N 22 44 58

AGREE 18 36 94

10
STRONGLY AGREE 3 6 0

TOTAL 50 100

46
 Materials associated with the services are visually appealing at the
bank

50% 44%
14%
36%

0%
6%
DISAGREE
UNCERTAIN
AGREE

STRONGLY
AGREE

INTERPRETATION

Materials associated with the service are visually appealing at HDFC bank. Here 36%

respondents agreed with this statement and 6% strongly agreed with this statement. 44% were

neutral that is most and 14% disagreed. There was no respondent who strongly disagreed.

47
RELIABILITY DIMENSION OF SERVICE QUALITY

Ques.5 when the bank promises to do something by a certain time, it does so.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

STRONGLY DISAGREE 2 4 4

DISAGREE 14 52 56

UNCERTAIN 5 10 66

AGREE 26 28 94

STRONGLY AGREE 3 6 100

TOTAL 50 100

When bank promises to do something by

certain time, it does so

30
25
20
15
10
5
0
EE E IN EE EE
GR GRE TA R R
SA SA R AG AG
DI DI CE Y
N GL
LY U N
NG RO
RO ST
ST

INTERPRETATION

My sample size was 50. Here analysis shows that among the total respondents 26 respondents

agreed and 14 respondents disagreed with this question. Also I found that 5 people were
48
neutral and 2 people strongly disagreed. Hence I concluded that majority of them are agreed.

49
Ques. 6 when you have a problem, the bank shows a sincere interest in solving it.

CUMULATIV
SCALE FREQUENCY PERCENTAGE E
PERCENTAG
E

DISAGREE 3 6 6

UNCERTAIN 14 28 34

AGREE 26 52 86

STRONGLY AGREE 7 14 100

TOTAL 50 100

When you have a problem, bank shows sincere

interest in solving it

30

20
26
1
0
14
7
3

0 STRONG
DISAGREE UNCERTAIN AGREE LY
AGREE

INTERPRETATION

When you have a problem, HDFC bank shows sincere interest in solving it. After analyzing

this statement I found that most of the respondents agreed i.e. 52% respondents agreed. Also I

50
found that 28% were neutral with this statement and 6% were committed with disagree. There

was no one who strongly disagreed. Hence HDFC bank can be said to be reliable.

Ques.7 The bank performs the service right the first time.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

STRONGLY DISAGREE 2 4 4

DISAGREE 8 16 20

UNCERTAIN 17 34 54

AGREE 17 34 88

STRONGLY AGREE 6 12 100

TOTAL 50 100

Bank performs the service right

the first time
20

15

10

0
.. E N E E
SA. RE AI RE RE
DI AG RT AG AG
Y IS CE LY
NGL D
UN G
N
RO RO
ST ST

INTERPRETATION

51
Total sample size was 50. Here analysis shows that among the total respondents 17 people

agreed with this statement. 6 people strongly agreed with this statement. Also 17 people were

neutral and the rest of the respondents disagreed and strongly disagreed.

Ques.8 The bank insists on error free records.

PERCENTAG CUMULATIV
SCALE FREQUENCY E E
PERCENTAG
E

DISAGREE 5 10 10

UNCERTAIN 10 20 30

AGREE 23 46 76

STRONGLY AGREE 12 24 100

TOTAL 50 100

Bank insists on error free records

25

20

15

10

0
DISAGREE UNCERTAIN AGREE STRONGLY AGREE

52
INTERPRETATION

Bank insists on error free records. HDFC bank has proved from my analysis that it surely insist

on error free records as 46% respondents agreed with this statement and 24% strongly agreed.

Only 10% respondents disagreed and no one strongly disagreed.

53
RESPONSIVENESS DIMENSION OF SERVICE QUALITY

Ques. 9 Employees in the bank tell you exactly when the services will be performed.

PERCENTAG CUMULATIV
SCALE FREQUENCY E E
PERCENTAG
E

STRONGLY
DISAGREE 6 12 12

DISAGREE 8 16 28

UNCERTAIN 13 26 54

AGREE 18 36 90

STRONGLY AGREE 5 10 100

TOTAL 50 100

Chart Title
16
12
8
4
0
E E N E E
GRE GRE T AI GRE GRE
SA SA R A A
DI DI CE Y
Y UN
NGL
NGL RO
RO ST
ST

INTERPRETATION

54
Employees in the bank tell you exactly when the services will be performed. Majority of the

respondents agreed with this statement. 26% respondents were uncertain. At the same time 16%

disagreed and 12% strongly disagreed with this statement.

Ques. 10 Employees in the bank give your prompt service.

PERCENTAG CUMULATIV
SCALE FREQUENCY E E
PERCENTAG
E

DISAGREE 5 16 28

UNCERTAIN 16 26 54

AGREE 27 36 90

STRONGLY AGREE 2 10 100

TOTAL 50 100

When you have a problem, bank shows sincere

interest in solving it

30

20
26
1
0
14
7
3

0 STRONG
DISAGREE UNCERTAIN AGREE LY
AGREE

55
INTERPRETATION

Most of the respondents agreed with this statement. According to my analysis, employees in

HDFC Bank give prompt service. Among the total respondents agreed respondents were 27

and strongly agreed, 16 people were neutral and 5 disagreed. There was no respondent who

strongly disagreed with this statement.

56
Ques.11 Employees in the bank are always willing to help you.

PERCENTAG CUMULATIV
SCALE FREQUENCY E E
PERCENTAG
E

UNCERTAIN 12 24 24

AGREE 29 58 82

STRONGLY AGREE 9 18 100

TOTAL 50 100

Employees in bank are willing to help you

29

12

57
 9

UNCERTAIN AGREE STRONGLY AGREE

INTERPRETATION

Employees in HDFC bank are willing to help you. With this statement no one disagreed or

strongly disagreed. Strongly agreed were 9 people i.e. 18% respondents strongly agreed,

29 people agreed i.e. 58% respondents agreed and 24% respondents were neutral.

58
Ques.12 Employees in the bank are never too busy to respond to your request.

PERCENTAG CUMULATIV
SCALE FREQUENCY E E
PERCENTAG
E

DISAGREE 1 2 2

UNCERTAIN 11 22 24

AGREE 27 54 78

STRONGLY AGREE 11 22 100

TOTAL 50 100

Employees at bank are never too busy to

respond to your request

30
25
20
15
10
5
0
DISAGREE UNCERTAIN AGREE STRONGLY AGREE

INTERPRETATION

Employees in HDFC Bank ltd are never too busy to respond to your request. After analyzing

this statement I found that most of the respondents agreed with this statement. Among the total

59
respondents 22% strongly agreed and 54% agreed. 11 respondents were neutral and 1

respondent disagreed. No one strongly disagreed.

ASSURANCE DIMENSION OF SERVICE QUALITY

Ques.13 the employees of the bank are trustworthy.

PERCENTAG CUMULATIV
SCALE FREQUENCY E E
PERCENTAG
E

DISAGREE 4 8 8

UNCERTAIN 13 26 34

AGREE 28 56 90

STRONGLY AGREE 5 10 100

TOTAL 50 100

Employees of the bank are

trustworthy

28
30
25
20 13
15
5
10 4
5
0
DISAGREE UNCERTAIN AGREESTRONGLY AGREE

60
INTERPRETATION

The employees of the bank are trustworthy. According to my findings, 54% respondents

agreed that employees at HDFC bank are trustworthy. 13% respondents were neutral and 4%

respondents disagreed with this statement.

Ques.14 The behavior of employees in the bank instills confidence in you.

PERCENTAG CUMULATIV
SCALE FREQUENCY E E
PERCENTAG
E

DISAGREE 28 56 56

UNCERTAIN 4 8 64

AGREE 13 26 90

STRONGLY AGREE 5 10 100

TOTAL 50 100

Behavior of employees in the bank instills confidence in you

28
30

20
13
10
4
0 5

DISAGREE
UNCERTAIN
AGREE
STRONGLY AGREE

61
INTERPRETATION

The behavior of employees in HDFC bank instills confidence in you. Here analysis shows that

most of the people disagreed. Among the total respondents 28 respondents disagreed, 13 agreed

and 5 strongly agreed. There was no respondent who strongly disagreed. This means 56%

respondent disagreed with this statement.

Ques.15 You feel safe in your transactions with the bank.

PERCENTAG
SCALE FREQUENCY E CUMULATIVE

PERCENTAGE

DISAGREE 5 10 10

UNCERTAIN 16 32 42

AGREE 23 46 88

STRONGLY AGREE 6 12 100

TOTAL 50 100

62
 You feel safe in your transactions with the
bank
25
20
15
10
5
0
DISAGREE UNCERTAIN AGREE STRONGLY AGREE

INTERPRETATION

With this statement most of the respondents agreed. Among the total respondents 23 agreed

with this statement and 6 strongly agreed. 32% respondents were neutral and 10% respondents

disagreed. But there no one who strongly disagreed.

Ques.16 Employees in the bank have the knowledge to answer your questions.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAG
E
DISAGREE 2 4 4

UNCERTAIN 9 18 22

AGREE 26 52 74

STRONGLY AGREE 13 26 100

TOTAL 50 100

63
 Employees in the bank have knowledge to answer your
questions

STRONGLY 13
AGREE

26
AGREE

9
UNCERTAIN

2
DISAGREE

INTERPRETATION

From my analysis I found that 54% respondents agreed that employees of HDFC bank

have complete knowledge to answer their questions. 26% respondents strongly agreed to

this statement and only 4% disagreed. 18% neither agreed nor disagreed.

64
EMPATHY DIMENSION OF SERVICE QUALITY

Ques.17 The bank gives you individual attention.

PERCENTAG CUMULATIV
SCALE FREQUENCY E E
PERCENTAG
E

DISAGREE 26 52 52

UNCERTAIN 12 24 76

AGREE 10 20 96

STRONGLY AGREE 2 4 100

TOTAL 50 100

Bank gives you individual attention

26

12
10

2
DISAGREE
UNCERTAIN
AGREE
STRONGLY AGREE

INTERPRETATION

HDFC bank is not able to give individual attention to its customers as out of the total

respondents 54% disagreed with this statement. 12% of the respondents were neutral and
65
only 12% agreed and 2% strongly agreed. From this finding it can be concluded that it is

unable to give individual attention to its customers.

Ques.18 The bank has operating hours convenient to all its customers.

PERCENTAG CUMULATIV
SCALE FREQUENCY E E
PERCENTAG
E

DISAGREE 2 4 4

UNCERTAIN 14 28 32

AGREE 27 54 86

STRONGLY AGREE 7 14 100

TOTAL 50 100

Bank has operating hours convenient to all its customers

STRONGLY 7
AGREE

27
AGREE

14
UNCERTAIN

2
DISAGREE

0 5 10 15 20 25 30

INTERPRETATION

66
HDFC bank has operating hours convenient to all its customers. Out of 50 respondents, 27

respondents agreed with this statement and only 2 respondents disagreed. Also 7 respondents

strongly agreed that the bank has operating hours convenient to its customers.

67
Ques.19 The bank has your interests best at heart.

FREQUENC PERCENTAG CUMULATIV

SCALE Y E E
PERCENTAG
E

STRONGLY
DISAGREE 3 6 6

DISAGREE 5 10 16

UNCERTAI
N 10 20 36

AGREE 25 50 86

STRONGLY AGREE 7 14 100

TOTAL 50 100

30
25
20

10 10
3 5
7
0
STRONGLY DISAG
REE
DISAGREE
UNCERTAIN
AGREE
STRONGLY
AGREE
Bank has your interests best at heart

68
INTERPRETATION

HDFC bank has your best interests at heart. Here analysis shows that 25 respondents agreed and

7 respondents strongly agreed with this statement. 20% were neutral and the rest disagreed and

strongly disagreed.

Ques.20 The employees of the bank understand your specific needs.

PERCENTAG CUMULATIV
SCALE FREQUENCY E E
PERCENTAG
E

DISAGREE 5 10 10

UNCERTAIN 21 42 52

AGREE 20 40 92

STRONGLY AGREE 4 8 100

TOTAL 50 100

Employees of the bank understand your specific needs

2
1
20

5
4

69
 DISAGREE UNCERTAIN AGREE STRONGLY AGREE

INTERPREATION

Employees of HDFC bank understand specific needs. With this statement most of the

respondents were neutral. Among the total respondents 20 respondents agreed and 4 respondents

strongly agreed. 5 respondents disagreed with this statement.

MEASURING SERVICE QUALITY DIMENSIONS

Measuring the quality of a service can be a very difficult exercise. Unlike product where

there are specific specifications such as length, depth, width, weight, color etc. a service can

have numerous intangible or qualitative specifications.

Parasuraman, Zeithaml, and Berry (1985) provide a list of determinants of service quality: access,

communication, competence, courtesy, credibility, reliability, responsiveness, security,

understanding, and tangibles. A total of five consolidated dimensions of service quality are:

Tangibles (ques.1 to 4) - Physical facilities, equipment’s and appearance of personnel

Reliability (ques.5 to 8) - Ability to perform the promised service dependably and accurately

Responsiveness (ques.9 to 12) – Willingness to help customers and provide prompt services

Assurance (ques.13 to 16) – (including competence, courtesy, credibility and security)

Knowledge and courtesy of employees and their ability to inspire trust and confidence

70
Empathy (ques.17 to 20) – (including access, communication and understanding the

customer) Caring and individualized attention that firm provides to its customer.

In order to calculate which dimension of service quality is performing well, a sample of the

questions are used in the questionnaire. Using the questionnaire, obtain the score for each of the

20 statements. After analysis of the data, Overall score to each statement is given on a scale of 1

to 5 i.e. 1 is given to strongly disagreed i.e. the lowest score, then 2= disagreed, 3= uncertain, 4=

agreed and 5= strongly agreed.

Sum the score for each dimension of service quality to obtain a final score which tells which

71
Dimension is performing well and which dimension needs improvement.

The scores are shown in the following table:

Statement Score

1
. HDFC bank has modern looking equipment. 2

2
. The bank’s physical features are visually appealing. 3

3
. The bank’s reception desk employees are neat appearing. 3

4
. Materials associated with the service (such as pamphlets or statements) are 3

Visually appealing at the bank.

5
. When the bank promises to do something by a certain time, it does so. 2

6
. When you have a problem, the bank shows a sincere interest in solving it. 4

7
. The bank performs the service right the first time. 3.5

8
. The bank insists on error free records. 4

9
. Employees in the bank tell you exactly when the services will be performed. 4

1
0
. Employees in the bank give you prompt service. 4

1 Employees in the bank are always willing to help you. 4

1

72
.

1
2
. Employees in the bank are never too busy to respond to your request. 4

1
3
. The employees of the bank are trustworthy. 4

1
4
. The behavior of employees in the bank instills confidence in you. 2

1
5
. You feel safe in your transactions with the bank. 4

1
6
. Employees in the bank have the knowledge to answer your questions. 4

1
7
. The bank gives you individual attention. 2

1
8
. The bank has operating hours convenient to all its customers. 4

73
 Statement Score

1
9
. The bank has your best interests at heart. 4

2
0
. The employees of the bank understand your specific needs. 3

The scores for each dimension are summed up and a final score is obtained:

SERVICE QUALITY DIMENSION Points

1
. TANGIBILITY (1 TO 4) 11

2 13.
. RELIABILITY (5 TO 8) 5

3
. RESPONSIVENESS (9 TO 12) 16

4
. ASSURANCE (13 TO 16) 14

5
. EMPATHY (17 TO 20) 13

SERVICE QUALITY OF HDFC BANK

74
1
8
1
6
16
1
4
14
1 13.5
2 13
1
0 11

0 TANGIBILI RELIABILIT ASSURAN

TY Y RESPONSIVENESS CE EMPATHY

75
FINDINGS OF THE REPORT

 The Reliability dimension of service quality is better as compared to empathy and

tangibility. Still the score is low. For most services, customer’s perceptions of whether the

Service has been performed correctly, and not provider-established criteria, are the major

determinants of reliability. Customers of the bank hesitate to rely on the bank. Whenever they

have a problem, the bank shows sincere interest in solving it but the services are not performed

by a certain time as promised. The employees should take this problem m seriously and take

steps to remove this.

 As score for Assurance is at second place after responsiveness, so the customers of

HDFC bank are very confident and feel safe while transacting with the bank. Moreover the

Employees of the bank have proved to be trustworthy. Employees are also educated enough

to answer all the questions.

 The score of Tangibility dimension of service quality of HDFC bank is the lowest. The

76
service quality factor tangible is defined by whether the physical facilities and materials

Associated with the service are visually appealing at the bank. These are all factors that

customers notice before or upon entering the bank. Customer expectations regarding visual

appealing of HDFC is very high. From my study I found that Physical facilities and modern

looking equipment are not sufficient in HDFC bank. Respondents were uncertain about the neat

appearance of the reception desk employees. So they should work on that and try to fulfill the

gap.

 According to my findings, the score of Empathy is not satisfactory but not unsatisfactory
also. HDFC bank is unable to give individual attention to its customers and is unable to

77
Understand specific needs of its customers. But still bank has taken steps to satisfy its customers by

keeping operating hours convenient to its customers and keeping their interest best at heart.

 In HDFC bank, the score of Responsiveness is highest so they are focusing on prompt
service, employees are willing to help the customers and say the exact time when the services

Will be performed. Employees at bank give their customers first preference and are always

ready to help them. Overall HDFC bank’s responsiveness dimension of service quality is the

highest.

 According to the customer perception, HDFC bank is highly responsive. Customers are
assured while transacting with the bank. The reliability dimension is lower than the first to

Dimension. They feel that the bank is unable to give them individual attention and its

equipment’s are not modern and sufficient for the bank.

 There is not much gap between all the dimensions, this shows that HDFC BANK is a better
service provider in all the dimensions i.e. reliability, assurance, tangibility, responsiveness

78
And empathy. As a result of which, the customers are satisfied with the service offered by

HDFC bank.

79
CONCLUSION
Based on the study conducted it can be concluded that responsiveness, assurance and reliability are

the critical dimensions of service quality of HDFC bank and they are directly related to overall

service quality. The factors that may delight customers tend to be concerned more with the

intangible nature of the service, commitment, attentiveness, friendliness, care, and courtesy.

The employees give prompt services, always are ready to answer the questions and are

trustworthy. The main sources of dissatisfaction appear to be cleanliness, up to date technology

modern equipment’s, and neatly dressed up employees. The Tangibility dimension of service

quality of HDFC bank is highly disappointing and serious steps are needed to be taken to

enhance this dimension. Customers of the bank are dissatisfied with the empathy dimension.

To satisfy these customers, the management can take some attempts, noted earlier as

recommendations.

The study brings about the areas which require urgent attention of the employees, the

management, and the policy makers of the industry. These are areas in which customers are

hugely dissatisfied with the services of the banks against their expectation. This high degree of

dissatisfaction resulting from the services received clearly questions the design of services or

subsequent response of the bank employees. These limitations are too serious to be avoided as

these question the front- line people dealing with the customers and the approach of the

management in taking customers seriously.

The management should understand the benefits of service quality. It include increased customer

satisfaction, improved customer retention, positive word of mouth, reduced staff turnover, decreased

operating costs, enlarged market share, increased profitability, and improved financial

Performance.
80
RECOMMENDATIONS

 Reliability is an obvious place to start. Customers of the bank want to know their resources
are safe and within trustworthy institutions. A way to ensure this peace of mind would

Be to take steps to ensure bank employees are well trained, so each bank associate is able to

offer complete and comprehensive information at all times. Consistent policies combined with a

knowledgeable staff will foster a high degree of institutional cohesion and reliability.

 Responsiveness, again when associated with a well-trained staff and timely answers to
service-related questions, would make significant inroads into causing HDFC bank be regarded

as responsive. Staff should be encouraged to present relevant options to banking customers in

a manner that does not resemble salesmanship so much as a desire to serve.

 Intangibles please customers just as much as tangibles in the banking industry. People
tend to visit the same branch of a bank over and over again. Usually, this is a location close to

81
Their home or their workplace. It is natural that customers become comfortable and habituated

to these branch banks, for the same reason they develop familiarity with a neighborhood

supermarket or convenience store. It makes sense that bank employees would be encouraged to

learn to recognize these regular customers, learn their names, and begin to identify their basic

service requirements.

 Learning to understand customers‟ needs will allow bank associates to offer enhanced

Services, perhaps lowering customers‟ banking costs and increasing their investment potential.

This could also open up the possibility of increased profits for banks, for when perceived as

more service and customer oriented, they will, in effect, become a useful

And pleasant way to “shop.”

⮚
keeping the bank with up-to-date technologically are important factors. Modern

82
Equipment’s, new improved technology should be replaced with the old ones. If the staff inside

is pleasant and well- informed, in an aesthetically pleasing environment, then customer

satisfaction will be high.

 The five-dimensional structure could possibly serve as a meaningful framework for

Tracking a bank’s service quality performance over time and comparing it against the

performance of competitors. Items on some dimensions should be expanded if that is

necessary for reliability.

⮚
Thus, the banking industries must continuously measure and improve these dimensions in
order to gain customers‟ loyalty.

83
ANNEXURE
BIBLIOGRAPHY

● Kotler Philip, marketing management, (Pearson education, 12th

edition)

● Malhotra K. Naresh, marketing research (An applied orientation),

Research design,(Prentice hall of India pvt. 5th edition)

● Zeithmal V. A., Grembler D.D., Bitner M.j., and Pandit A.: Service

Marketing Integrated customer Focus across the Firm” (4th Edition)

● www.google.com

● www.hdfcbank.com

● www.hdfcindia.com

● www.wikipedia.org

● www.marketresearch.com

84
QUESTIONNAIRE

Respected Sir/Madam

I am student of Ganga Institute of Technology And Management, conducting a survey on

“SERVICE QUALITY OF HDFC BANK”. The following statements relate to your feelings

about the HDFC bank. Please show the extent to which you believe HDFC bank has the feature

described in the statement. I request you to √ the option which in your opinion are believed to

be true. All data will be kept confidential.

Name:

Strongly Disagree Disagree Neither agree Agree Strongly

Agree
Nor disagree
1
. HDFC bank has modern looking equipment.
2
. The bank's physical features are visually appealing.
3
. The bank's reception desk employees are neat

Appearing.
4
. Materials associated with the service (such as

pamphlets or statements) are visually appealing at

the bank.
5
. When the bank promises to do something by a certain

Time, it does so.

6
. When you have a problem, the bank shows a sincere

Interest in solving it.

85
 Strongly Disagree Disagree Neither agree Agree Strongly
Agree
Nor disagree

7
. The bank performs the service right the first time.
8
. The bank insists on error free records.
9
. Employees in the bank tell you exactly when the

Services will be performed.

1
0
. Employees in the bank give you prompt service.
1
1
. Employees in the bank are always willing to help

You.
1
2
. Employees in the bank are never too busy to respond

To your request.
1
3
. The employees of the bank are trustworthy.
1
4
. The behavior of employees in the bank instills

Confidence in you.
1
5
. You feel safe in your transactions with the bank.
1
6
. Employees in the bank have the knowledge to answer

Your questions.
1
7
. The bank gives you individual attention.
1
8
. The bank has operating hours convenient to all its

86
 Customers.
1
9
. The bank has your best interests at heart.
2
0
. The employees of the bank understand your

Specific needs.

87