PROJECT REPORT

ON
“SERVICE QUALITY OF HDFC BANK”
AT AGRA
Submitted in Partial Fulfillment for the Award of the
Degree of Bachelor in Business Administration 2018-2019

Under the Guidance of Submitted By

Chandan Pal Singh Shalu Dixit
Head Of Department Enrolment no.:-A-17254498

MANORAMA INSTITUTE OF MANAGEMENT AND TECHNOLGY,

LADAMDA, FATEHPUR SIKRI ROAD, AGRA
Affiliated to Dr.Bhim Rao Ambedkar University,AgraPaliwal park,Agra

1
 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.

.
Chandan Pal Singh
 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”.

I wish to express my gratitude to the branch manager Mr.

NAVEEN SHARMA of 20/20 A, 1st Flr, Taj Rd Sadar Bazar
Agra-282001 for giving
mean opportunity to be a part of their esteem organization and
enhance my knowledge by granting permission to do a summer
training Project. They provided me with their assistance and
support whenever needed, which has been instrumental in
completion of this project. I am thankful to them, for their
support and encouragement throughout the tenure of the project.
Also I am thankful to my faculty guide MS.Chandan Pal Singh
from MIMT Collage,AGRA, for being a source of support
during this training period. Last but not the least I am grateful to
all the staff members of HDFC Bank for their kind cooperation
and help during the course of my project.

Chandan pal sing

 INDEX

CONTENTS PAGE NO.

1. INTRODUCTION 5

2. COMPANY PROFILE 6

3. SERVICE QUALITY IN BANKS 15

4. RESEARCH OBJECTIVE 23

5. RESEARCH METHODOLOGY 25

6. DATA ANALYSIS 29

7. FINDINGS OF THE REPORT 65

8. CONCLUSION 67

9. RECOMMENDATIONS 68

10. BIBLIOGRAPHY 70
 INTRODUCTION OF BANKING

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 loan 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 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”.
COMPANY
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.

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.
 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

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:-

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 credit risk management

* 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 1229 branches spread over 444 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 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 2526 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 enjoys an impeccable track
record in India as well as in international markets. Since its inception in 1977, the
Corporation has maintained a consistent and healthy growth in its operations to
remain a market leader in mortgages. Its outstanding loan portfolio covers well
over a million dwelling units. HDFC has developed significant expertise in retail
mortgage loans to different market segments and also has a large corporate client
base for its housing related credit facilities. With its experience in the financial
markets, a strong market reputation, large shareholder base and unique consumer
franchise, HDFC was ideally positioned to promote a bank in the Indian
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 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(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 prioritised 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
bank does this by offering life insurance and pension products.

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
a range 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 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 recognised 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. 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. By March
2010, the bank had a total card base (debit and credit cards) of over 14 million. The
Bank is also one of the leading players in the “merchant acquiring” business with
over 90,000 Point-of-sale (POS) terminals for debit / credit cards acceptance at
merchant establishments. 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 liberalisation 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. To comply with statutory reserve requirements, the bank is
required to hold 25% of its deposits in government securities. The Treasury
business is responsible for managing the returns and market risk on this investment
portfolio.
SERVICE QUALITY
IN
BANKS
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.
Service quality is 'the delivery of excellent or superior service relative to
customer expectations‟ . Service quality is recognized as a multidimensional
construct. While the number of dimensions often varies from researcher to
researcher, there is some consensus that service quality consists of three primary
aspects: outcome quality, interaction quality, and physical service environment
quality. Outcome quality refers to the customer's assessment of the core service
which is the prime motivating factor for obtaining the services (e.g. money
received from ATM). Interaction quality refers to the customer's assessment of
the service delivery process, which is typically rendered via a physical interface
between the service provider, in person, or via technical equipment, and the
customer. It includes, for instance, the consumer's evaluation of the attitude of the
service providing staff. The physical service environment quality dimension
refers to the consumer's evaluation of any tangible aspect associated with the
facilities or equipment that the service is provided in/ with. It includes, for
example, the physical conditions of an ATM machine.
The most popular dimensions of service quality--features five dimensions:
tangibles, reliability, responsiveness, empathy, and assurance. The tangibles
dimension corresponds to the 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 an indirect influence on such intentions, mediated through
customer satisfaction.
RATER is an instrument that might be used to define and measure banking
service quality and to 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.

Banks managers can use the RATER model and its dimensions first to identify the
following issues:
 RESPONSIVENES

TANGIBILIT RELIABILITY

EMPATHY ASSURANCE

DIMENSIONS OF SERVICE
QUALITY
DIMENSIONS OF SERVICE QUALITY

TANGIBILITY: This dimension deal with modern looking equipments and visual
appealing part of banks.

RELIABILITY: This dimension has a direct positive effect on perceived service

quality and customer 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.

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

EMPATHY: individual attention, customized service and convenient banking

hours are very much important 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.

Banking was in the sector featuring medium goods and higher customer producer
interactions, since in banking, consumers and service providers interact
personally and the use of goods is at a medium level. Hence, in banking, where
there are high customer-producer interactions, the quality of
service is determined to a large extent by the skills and attitudes of people
producing the service.

In the case of services, because customers are often either direct observers of the
production process or active participants, how the process is performed also has a
strong influence on the overall impression of the quality of service. A well-
performed service encounter may even overcome the negative impression caused
by poor technical quality as well as generate positive
word-of-mouth, particularly if customers can see that employees have worked very
hard to satisfy them in the face of problems outside their control.
Employees are part of the process, which connects with the customer at the point
of sale, and hence employees remain the key to success at these service encounters
or “moments of truth”. It is these encounters with customers during a service that
are the most important determinants of overall customer satisfaction, and a
customer‟ s experience with the service will be defined by the brief experience
with the firm‟ s personnel and the firm‟ s systems. The rudeness of the bank‟ s
customer service representative, the abruptness of the employee at the teller
counter, or the lack of interest of the person at the check deposit counter can alter
one‟ s overall attitude towards the service, perhaps even reversing the impression
caused by high technical quality.

Another important service quality factor, competence, is defined by whether the

bank performs the service right the first time, whether the employees of the bank
tell customers exactly when services will be performed, whether the bank lives up
to its promises, whether customers feel safe in their transactions with the bank and
whether the employees show a sincere interest in solving the customers‟
problems. In short, this dimension is related to the banks‟ ability to perform the
promised service accurately and dependably. Performing the service dependably
and accurately is the heart of service marketing excellence. When a company
performs a service carelessly, when it makes avoidable mistakes, and when it fails
to deliver on promises made to attract customers, it shakes customers‟ confidence
in its capabilities and undermines its chances of earning a reputation for service
excellence.

It is very important to do the service right the first time. In case a service
problem does crop up, by resolving the problem to the customer‟ s
satisfaction, the company can significantly improve customer retention.
However, companies fare best when they prevent service problems altogether and
fare worst when service problems occur and the company either ignores them or
does not resolve them to the customer‟ s satisfaction.

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
goods. Hence for most services, customers‟ perceptions of whether the service
has been performed correctly, and not provider- established criteria, are the
major determinants of reliability.

The 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. Such
visual factors help consumers form their initial impressions. A crucial challenge in
service marketing is that customers cannot see a service but can see the various
tangibles associated with it - all these tangibles, the service facilities, equipment
and communication materials are clues about the intangible service. If unmanaged,
these clues can send to the customer‟ s wrong messages about the service and
render ineffective the marketing strategy of the company. On the other hand,
improving quality through tangibles means attention to the smallest details that
competitors might consider trivial. Yet, these visible details can add up for
customers and signal a message of caring and competence.

Customers may reveal new aspects of service quality in banking that are important
to them, and these would have to be incorporated in the scale so as to further
explore the concept of service quality in the banking arena.
RESEARCH OBJECTIVE

AND

RESEARCH

METHODOLOGY
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 customer‟ s satisfaction.

 To find out the level of perception of the customers from the service
quality offered by the banks.

 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 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

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
Agra only.
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.

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

characteristics about 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.

The description is used for frequencies, averages and other statistical calculations.
Often the best approach, prior to writing descriptive research, is to conduct a
survey investigation. Qualitative research often has the aim of description and
researchers may follow-up with examinations of why the observations exist and
what the implications of the findings are

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.

 Contact Method: Personal Interview.

SAMPLE SIZE:

The work is a case of HDFC Bank, one of the largest bank 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 Agra with two branches of
HDFC Bank, with 50 customers as respondent.

DATA COLLECTION TOOL

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. The questionnaire consists of two parts. The first part
consists of three questions concerning the demographic information of the
respondent such as the name, age, educational qualifications and income. The
second part consisting of 18 questions exploring the
respondent‟ s perception about the service quality of HDFC. For evaluation of
service quality of HDFC bank service quality dimension of reliability, assurance,
tangibility, empathy and responsiveness is used in order to evaluate the actual
service quality of HDFC bank.
LIMITATIONS OF THE STRATEGY

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.

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 limitation faced, as it was difficult to analyse and come at a right
conclusion.

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

 DATA
ANALYSIS
 Ques. Age

AGE CATEGORY FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

18-23 Years 10 20 20

24-29 Years 17 34 54

30-35 Years 15 30 84

35 Years and above 8 16 100

TOTAL 50 100

Sales

20 %
16 %
18-23 Year
24-29 Year
30 % 30-35 Year
34 % 35 and above
INTERPRETATION

From the table and graph above it can be seen that

20% respondent‟ s age are 18 to 23 years.

34% respondent‟ s age are 24 to 29 years.

30% respondent‟ s age are 30 to 35 years..

16% respondent‟s age are 35 to above years.

Ques. Educational qualifications

CATEGORY FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

UNDER
GRADUATE 13 26 26

GRADUATE
20 40 66
POST GRADUATE
17 34 100
TOTAL
50 100
 Sales

26 %
34 % UNDERGARDUATE
GRADUATE POST GRADUATE

40 %

INTERPRETATION

From the table above it can be seen that.

 26% respondents are Under graduate.

 40% respondents are Graduate.

 34% respondents are Post graduate.

TANGIBILITY DIMENSION OF SERVICE QUALITY
(Questions1 to 4):

Physical facilities, equipments and appearance of personnel

Ques.1 HDFC bank has modern looking equipment.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

STRONGLY 5 10 10
DISAGREE

DISAGREE 25 50 60
UNCERTAIN 16 32 92
AGREE 4 8 100
TOTAL 50 100

Sales

8 % 10 %
STRONGLY DISAGREE
32 % DISAGREE UNCERTAIN
AGREE

50 %
INTERPRETATION

HDFC bank has modern-looking and hi-tech equipments. Here analysis show that
most of the respondents disagreed with this statement. Among the total
respondents 50% disagreed, 32% were neutral and 8% agreed. After analysis I
found that majority of the respondents think that HDFC Bank do not have modern
looking equipments or no hi-tech equipments.

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

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

DISAGREE 4 8 8
UNCERTAIN 29 58 66
AGREE 17 34 100
TOTAL 50 100
 Sales

8%
34 %
DISAGREE
UNCERTAIN AGREE

58 %

INTERPRETATION

HDFC bank‟ s physical facilities are visually appealing. From this statement I
found that 17 persons agreed. 29 persons were uncertain and 4 persons disagreed.
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.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

DISAGREE 5 10 10
UNCERTAIN 21 42 52
AGREE 18 36 88
STRONGLY AGREE 6 12 100
TOTAL 50 100

Sales

12 % 10 %
DISAGREE

36 % 42 %
UNCERTAIN
AGREE
STRONGY 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. From analysis I found that
some respondents agreed with this statement but most of the respondents think the
employees of the HDFC bank appear neat.

Ques.4 Materials associated with the service (such as pamphlets or

statements) are visually appealing at the bank.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

DISAGREE 7 14 14
UNCERTAIN 22 44 58
AGREE 18 36 94
STRONGLY 3 6 100
AGREE

TOTAL 50 100
 Sales

6%
14 %
DISAGREE
36 % UNCERTAIN AGREE
STRONGLY

44 %

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. Hence, in general it can be concluded that
materials associated with the services such as pamphlets or statements are visually
appealing.
RELIABILITY DIMENSION OF SERVICE QUALITY (Questions 5 to 8):

Ability to perform the promised service dependably and accurately

Ques.5 When the bank promises to do something by a certain time, it

does so.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

STRONGLY 2 4 4
DISAGREE

DISAGREE 26 52 56
UNCERTAIN 5 10 66
AGREE 14 28 94
STRONGLY AGREE 3 6 100
TOTAL 50 100
 Sales

STRONGLY DISAGREE DISAGREE UNCERTAIN

AGREE
STRONGLY AGREE

INTERPRETATION

My sample size was 50. Here analysis shows that among the total respondents 26
respondents disagreed and 14 respondents agreed with this question. Also I found
that 5 people were neutral and 2 people strongly disagreed. Hence I concluded that
majority of them disagreed that the bank when promises to do something by
certain time, it does so.
Ques. 6 When you have a problem, the bank shows a sincere interest
in solving it.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

DISAGREE 3 6 6
UNCERTAIN 14 28 34
AGREE 26 52 86
STRONGLY AGREE 7 14 100
TOTAL 50 100

Sales

6%
14 %
28 %
DISAGREE
UNCERTAIN AGREE
STRONGLY AGREE

52 %
INTERPRETATION

When you have a problem, HDFC bank shows sincere interest in solving it. After
analysing this statement I found that most of the respondents agreed i.e. 52%
respondents agreed. Also I 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 2 4 4
DISAGREE

DISAGREE 8 16 20
UNCERTAIN 17 34 54
AGREE 17 34 88
STRONGLY AGREE 6 12 100
TOTAL 50 100
 Sales

4%
16%
34% STRONGLY DISAGREE
DISAGREE

AGREE
34% STRONGLY AGREE UNCERTAIN
12%

INTERPRETATION

Total sample size was 50. Here analysis shows that among the total respondents 17
people agreed with this statement. They think that HDFC bank performs the
services right the first time. 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.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

DISAGREE 5 10 10
UNCERTAIN 10 20 30
AGREE
23 46 76
STRONGLY AGREE
12 24 100

TOTAL
50 100

Sales

10%
24 %
20%
DISAGREE
UNCERTAIN AGREE
STRONGLY AGREE
46%
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.

RESPONSIVENESS DIMENSION OF SERVICE

QUALITY (Question 9 to 12):

Willingness to help customers and provide prompt services

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

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

STRONGLY 6 12 12
DISAGREE

DISAGREE 8 16 28
UNCERTAIN 13 26 54
AGREE 18 36 90
STRONGLY AGREE 5 10 100
TOTAL 50 100
 Sales

12%
STRONGLY DISAGREE
36% DISAGREE UNCERTAIN STRONGLY AGREE AGREE

26%
10%

INTERPRETATION
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 you prompt service.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

DISAGREE 5 10 10
UNCERTAIN 16 32 42
AGREE 27 54 96
STRONGLY AGREE 2 4 100
TOTAL 50 100

Sales

4% 10%

54% DISAGREE
32% UNCERTAIN AGREE
STRONGLY AGREE
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 were 2. 16 people were neutral
and 5 disagreed. There was no respondent who strongly disagreed with this
statement.

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

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

UNCERTAIN 12 24 24
AGREE 29 58 82
STRONGLY AGREE 9 18 100
TOTAL 50 100

.
 Sales

18% 24%
UNCERTAIN
AGREE
STRONGLY AGREE
58%

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

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

DISAGREE 1 2 2
UNCERTAIN 11 22 24
AGREE 27 54 78
STRONGLY AGREE 11 22 100
TOTAL 50 100

Sales

22% 22%
DISAGREE
UNCERTAIN
AGREE
54% 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 respondents 22% strongly agreed and 54%
agreed. 11 respondents were neutral and 1 respondent disagreed. No one
strongly disagreed.

ASSURANCE DIMENSION OF SERVICE QUALITY

(Question13 to 16):

Knowledge and courtesy of employees and their ability to inspire trust

and confidence

Ques.13 The employees of the bank are trustworthy.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

DISAGREE 4 8 8
UNCERTAIN 13 26 34
AGREE 28 56 90
STRONGLY AGREE 5 10 100
TOTAL 50 100
 Sales

10% 8%
26% DISAGREE
56% UNCERTAIN AGREE
STRONGLY AGREE

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.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

DISAGREE 28 56 56
UNCERTAIN 4 8 64
AGREE 13 26 90
STRONGLY AGREE 5 10 100
TOTAL 50 100

Sales

10%
26% 56%
DISAGREE
UNCERTAIN AGREE
STRONGLY AGREE

8%

S
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.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

DISAGREE 5 10 10
UNCERTAIN 16 32 42
AGREE 23 46 88
STRONGLY AGREE 6 12 100
TOTAL 50 100
 Sales

12% 10%
46%
1st Qtr
32% 2nd Qtr 3rd Qtr
4th Qtr

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

PERCENTAGE

DISAGREE 2 4 4
UNCERTAIN 9 18 22
AGREE 26 52 74
STRONGLY AGREE 13 26 100
TOTAL 50 100

Sales

4%
26% 18%
DISAGREE
UNCERTAIN AGREE
STRONGLY AGREE
52%
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.

EMPATHY DIMENSION OF SERVICE QUALITY (Question17 to

20):

Caring and individualized attention that firm provides to its customers.

Ques.17 The bank gives you individual attention.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

DISAGREE 26 52 52
UNCERTAIN 12 24 76
AGREE 10 20 96
STRONGLY AGREE 2 4 100
TOTAL 50 100
 Sales

4%
20%
52%
DISAGREE
UNCERTAIN AGREE
24% 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 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.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

DISAGREE 2 4 4

UNCERTAIN 14 28 32

AGREE 27 54 86

STRONGLY AGREE 7 14 100

TOTAL 50 100

Sales

4%
14%
28%
54% DISAGREE
UNCERTAIN AGREE
STRONGLY AGREE
INTERPRETATION

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.

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

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

STRONGLY
DISAGREE
3 6 6

DISAGREE
5 10 16
UNCERTAIN
10 20 36
AGREE
25 50 86
STRONGLY AGREE
7 14 100
TOTAL
50 100
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.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

DISAGREE
5 10 10
UNCERTAIN
21 42 52
AGREE
20 40 92
STRONGLY AGREE
4 8 100
TOTAL
50 100
 Sales

8% 10%

DISAGREE
40% 42% 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, colour 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, equipments 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
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
dimension is performing well and which dimension needs improvement.
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. RELIABILITY (5 TO 8)
13.5

3. RESPONSIVENESS (9 TO 12)
16

4. ASSURANCE (13 TO 16)

14

5. EMPATHY (17 TO 20)

13
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 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 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 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 equipments 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 and empathy. As a result of which, the customers are
satisfied with the service offered by HDFC bank.
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 equipments, 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. 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.
Thus, improving service quality leads to the customer satisfaction and,
ultimately, to customer loyalty.
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 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 equipments, 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.
BIBLIOGRAPHY

References

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)
M.K. Rampal : Service Marketing

Websites
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