A

Summer Training Report

On
“A STUDY OF CUSTOMER PREFERENCES IN CONTEXT TO
ONLINE BANKING SERVICES OF HDFC BANK”

Submitted in Partial Fulfillment of the Requirements For the Award of the

Degree of Master in Business Administration
Session 2020-2022
Submitted To: Submitted By:-
Kurukshetra University, Gurvind
Kurukshetra MBA- 3rd Sem
University Roll No. 201161630

Asia Pacific Institute of Information & Technology, Panipat

Kurukshetra University, Kurukshetra

 DECLARATION

This is to certify that I Gurvind, the student of Asia Pacific Institute of Information &
Technology, Panipat studying in MBA 3rd Semester, Roll No – 201161630 has undergone
Summer Training at HDFC for 45 days and prepared a report entitled for the partial fulfillment
of degree of Banking finance service and Insurance.
I hereby declare that the Report work entitled “A STUDY OF CUSTOMER PREFERENCES
IN CONTEXT TO ONLINE BANKING SERVICES OF HDFC BANK” submitted to the
Kurukshetra University, is a record of an original work done by me under the guidance of Mr.
Sumit Chanana (Branch Manager, Panipat) and this report has not formed the basis for the
award of any other Degree.

Gurvind
 SUPERVISOR’S CERTIFICATE

This is to certify that the summer training report titled “A STUDY OF CUSTOMER
PREFERENCES IN CONTEXT TO ONLINE BANKING SERVICES OF HDFC BANK”
is an academic work done by Gurvind,(University roll no.:-201161630) submitted in the partial
fulfillment of the requirement for the award of the degree of “Master of Business
Administration” under my guidance and direction. To the best of my knowledge and belief, the
data and information presented by student in the report has not been submitted earlier elsewhere.

Supervisor Signature
 HOD CERTIFICATE

This is to certify that the summer training report titled “A STUDY OF CUSTOMER
PREFERENCES IN CONTEXT TO ONLINE BANKING SERVICES OF HDFC BANK”
is an academic work done by Gurvind,(University roll no.:-201161630) submitted in the partial
fulfillment of the requirement for the award of the degree of “Master of Business
Administration” under my guidance and direction. To the best of my knowledge and belief, the
data and information presented by student in the report has not been submitted earlier elsewhere.

Dr. KHEM CHAND

(Head Department o Management Studies)
Asia Pacific Institute of Information Technology
SD INDIA, PANIPAT
 ACKNOWLEDGEMENT

Gratitude of highest order is expressed to DR. KHEM CHAND, HOD of Department of

Management studies of Asia Pacific Institute of Information & Technology, Panipat, for
encouragement and support during my report. His care, endless support and trust motivate me for
opportunity to achieve. This report could not be completed without his insight and achieve.
I am neither expert nor a trend spotter. I am a management student with foundations of
management principles and theories who is keen in different industries, it's happening mainly in
HDFC.
I am highly obliged to Mr. Sumit Chanana Branch Manager my prime external guide for his
invaluable support, guidance and knowledge that he has shared with me thereby aiding me in
making this report a success along with other employees who provided their utmost working
knowledge, which has broaden my area of interest and benefited mostly in completing the report.
I am highly grateful to my Faculty Coordinator Ms. Ekta Malik (Assistant Professor) for her
inspiring guidance and blessings for fulfilling the report. I am very grateful for her research
advice, knowledge and many insightful discussion and suggestions.
Lastly, I thank faculty and staff members of Asia Pacific Institute of Information & Technology,
Panipat which gave me an opportunity regarding training purpose and helped me in building
some experience in my career.

Gurvind
 EXECUTIVE SUMMARY

My report aims at comparative study on Customer preferences towards online banking with
respect to HDFC bank. Today banks are using huge amount of funds to private differentiate
services to their customers from their competitors like by using new software or by providing
new innovative services like internet banking ,mobile banking and many others but still they are
focusing only to provide the innovative services to the customers not focusing too aware them
regarding these services & also there is a need to aware the customers about the use & benefits
to the services provided by the bank. Online banking is a modern banking system .It is changing
the ways of doing banking business with modern technologies & techniques. It is the
replacement of traditional tools such as papers and pencils with the electronic systems. Online
service quality is considered as an important part of any service organization especially to
customer centric system like bank.

The present study, based on data and responses received from the HDFC BANK and to
understand the concept of banking and sub classification of banking into traditional and modern
banking to identify the various types of services offered by the banks, the level of satisfaction
among the customers from different types of services, expectation about these services and the
different age group of the customers accessing online banking.

HDFC and ICICI are major financial and banking service organizations in India. HDFC stands
for Housing Development Finance Corporation. It was in 1990’s that the Government of India
upon a policy of liberalization under the leadership of Narsimha Rao. This policy allowed private
banks to become established in India although small in number. The first among these banks was
Global Trust Bank after which various others like Axis bank, HDFC bank, and ICICI bank
emerged. This gave a boost to the banking sector in India. HDFC was established in 1994 by
India’s largest Housing finance company.

Commercial Banking in its very nature is a very complex industry. It has under its fold thousands
of different products for varied requirements of the customers, but it investments, loans, safe
Custody, in form of bank lockers etc. After an exhaustive research, we found that there are
certain things HDFC Bank can do enhance its Services experiences & build Favourable brand
equity. The findings are there HDFC Bank & credit card, HDFC Bank & internet banking, Cash
pick up Vans, HDFC Bank & debit card.
 TABLE OF CONTENTS

CHAPTER NO. PARTICULARS PAGE NO.

1. Introduction
 Introduction to the Industry
 Introduction to the Company 1-30
 Introduction to the Topic

2. Literature review 31– 36

3. Research methodology
 Research
 Objectives of study
 Research Design
 Sources of data collection
 Data Analytical tool
37-40
 Sample size
 Justification of the study
 Scope of study
 Limitations of study

4. Data analysis and interpretation 41-56

5. Findings Suggestion & Conclusion

 Findings 57-60
 Suggestions
 Conclusion
Bibliography

Annexure
 CHAPTER- 1
INTRODUCTION

1
 INTRODUCTION TO INDUSTRY

BANKING IN INDIA
A Sound banking system can help any of the economy to grow and the past of banks in
India starts with the Start of colonial period and with the passage of time banking system in
INDIA has shown a movement on the upper Side only as people Start noticing the benefit
of banks.

HISTORY
From the early Stage when the first bank was establish in 1786 to the reform of 1991 and
from then to know the banking system in India can be divided into 3 phase.
· PHASE I - Early phase from 1786 to 1969 of Indian Banks
· PHASE II - Nationalization of Indian Banks and up to 1991
· PHASE III - Indian Financial & Banking Sector Reforms after 1991.

PHASE I:
In the year 1786 The General Bank of India was set up. Next Bank of Hindustan and
Bengal Bank were establishing.
The East India Company established the following:
Bank of Bengal (1809),
Bank of Mumbai (1840) and
Bank of Madras (1843) as independent units and called it Presidency Banks.
These three banks were amalgamated in 1920 and Imperial Bank of India was established
which Started as private Share holder banks, mostly Europeans Shareholder. During the
first phase the growth was very slow and banks also experienced periodic failures between
1913 and 1948. There were approximately 1100 banks, mostly small. To Streamline the
functioning and activities of commercial banks, the Government of India came up with The
Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949
as per amending Act of 1965 (Act No.23 of 1965). Reserve Bank of India was vested with
extensive powers for the supervision of banking in India as the Central Banking Authority.
During those day’s public has lesser confidence in the banks. AS an aftermath deposit
2
mobilization was Slow. Abreast of it the savings bank facility provided by the Postal
department was comparatively Safer. Moreover, funds were largely given to the traders.

PHASE II:
Government took major Steps in this Indian Banking Sector Reform after independence. In
1955, it nationalized Imperial Bank of India with extensive banking facilities on a large
Scale especially in rural and Semi-urban areas. Second phase of nationalization Indian
Banking Sector Reform was carried out in 1980 with Seven more banks. This Step brought
80% of the banking Segment in India under Government ownership.

The following are the Steps taken by the Government of India to Regulate Banking
Institutions in the Country:
· 1949: Enactment of Banking Regulation Act.
· 1955: Nationalization of State Bank of India.
· 1959: Nationalization of SBI subsidiaries.
· 1961: Insurance cover extended to deposits.
· 1969: Nationalization of 14 major banks.
· 1971: Creation of credit guarantee corporation.
· 1975: Creation of regional rural banks.
· 1980: Nationalization of Seven banks with deposits over 200 crores.
After the nationalization of banks, the branches of the public Sector bank India raised to
approximately 800% in deposits and advances took a huge jump by 11,000%.Banking in
the Sunshine of Government ownership gave the public implicit faith and immense
confidence about the Sustainability of these institutions.

PHASE III
This phase has introduced many more products and facilities in the banking Sector in its
reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set
up by his name which worked for the liberalization of banking practices.
The country is flooded with foreign banks and their ATM Stations. Efforts are being put to
give a satisfactory Service to customers. Phone banking and net banking is introduced. The

3
 entire system became more convenient and Swift. The financial System of India has Shown
a great deal of resilience. It is Sheltered from any crisis triggered by any external macro
economics Shock as other East Asian Countries Suffered. This is all due to a flexible
exchange rate regime, the Foreign Reserves are high, the capital account is not yet fully
convertible, and banks and their customers have limited foreign exchange exposure.

NATIONALIZED BANKS IN INDIA

Banking System in India is dominated by nationalized banks. The nationalization of banks in
India took place in 1969 by Mrs. Indira Gandhi the then prime minister. The major objective
behind nationalization was to Spread banking infrastructure in rural areas and make
available cheap finance to Indian farmers. Fourteen banks were nationalized in 1969.
Before 1969, State of India (SBI) was only public Sector bank in India. SBI was
nationalized in 1955 under the SBI Act of 1955. The Second phase of nationalization of
Indian banks took place in the year 1980. Seven more banks were nationalized with deposits
over 200 crores

PRIVATE BANKS
All the banks in India were earlier private banks. They were founded in the pre-
independence era to cater to the banking needs of the people. But after nationalization of
banks in 1969 public Sector banks came to occupy dominant role in the banking Structure.
Private Sector banking in India received a fillip in 1994 when Reserve Bank of India
encouraged Setting up to private banksas part of its policy of liberalization of the Indian
Banking Industry. 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.
Private Banks have played a major role in the development of Indian banking industry.
They have made banking more efficient and customer friendly. In the process they have
jolted public Sector banks out of complacency and forced them to become more
competitive.

4
BANK
Finance is the life blood of trade, commerce and industry. Now-a-days, bank money acts as
the backbone of modern business. Development of any country mainly depends upon the
banking System.
The term bank is derived from the French word Banco which means a Bench or Money
exchange table.
A bank is a financial institution which deals with deposits and advances and other related
services. It receives money from those who want to Save in the form of deposits and it
lends money to those who need it.

Oxford Dictionary defines a bank as "an establishment for custody of money, which it pay
out on customer's order."

Features of a Bank:
Dealing in Money
Bank is a financial institution which deals with other people's money i.e. money given by
depositors.

Individual / Firm / Company

A bank may be a person, firm or a company. A banking company means a company which
is in the business of banking.

Acceptance of Deposit
A bank accepts money from the people in the form of deposits which are usually repayable
on demand or after the expiry of a fixed period. It gives Safety to the deposits of its
customers. It also acts as a custodian of funds of its customers.

Giving Advances
A bank lends out money in the form of loans to those who require it for different purposes.

5
 Payment and Withdrawal
A bank provides easy payment and withdrawal facility to its customers in the form of
cheques and drafts, It also brings bank money in circulation. This money is in the form of
cheques, drafts etc.

Agency and Utility Services

A bank provides various banking facilities to its customers. They include general utility
Services and agency Services.

Profit and Service Orientation

A bank is a profit Seeking institution having Service oriented approach.

Connecting Link
A bank acts as a connecting link between borrowers and lenders of money. Banks collect
money from those who have Surplus money and give the Same to those who are in need of
money.

Banking Business
A bank's main activity Should be to do business of banking which Should not be
Subsidiary to any other business.

Name Identity
Bank Should always add the word "bank" to its name to enable people to know that it is a
bank and that it is dealing in money.
In the earlier societies functions of a bank were done by the corresponding institutions dealing
with loans and advances. Britishers brought into India the modern concept of banking by the start
of Bank of England in 1694. In 1708, the bank of England was given the monopoly for the issue of
currency notes by an Act. In nineteenth century various banks started operations, which primarily
were receiving money on deposits, lending money, transferring money from one place to another
and bill discounting.

6
Banking in India

Banking in India has a very old origin. It started in the Vedic period where literature shows
the giving of loans to others on interest. The interest rates ranged from two to five percent
per month. The payment of debt was made pious obligation on the heir of the dead person.

Modern banking in India began with the rise of power of the British. To raise the resources
for the attaining the power the East India Company on 2 nd June 1806 promoted the Bank
of Calcutta. In the mean while two other banks Bank of Bombay and Bank of Madras
were started on 15th April 1840 and 1st July, 1843 respectively. In 1862 the right to issue
the notes was taken away from the presidency banks. The government also withdrew the
nominee directors from these banks. The bank of Bombay collapsed in 1867 and was put
under the voluntary liquidation in 1868 and was finally wound up in 1872. The bank was
however able to meet the liability of public in full. A new bank called new Bank of
Bombay was started in 1867.

On 27th January 1921 all the three presidency banks were merged together to form the
Imperial Bank by passing the Imperial Bank of India Act, 1920. The bank did not have the
right to issue the notes but had the permission to manage the clearing house and hold
Government balances. In 1934, Reserve Bank of India came into being which was made
the Central Bank and had power to issue the notes and was also the banker to the
Government. The Imperial Bank was given right to act as the agent of the Reserve Bank of
India and represent the bank where it had no braches. In 1955 by passing the State Bank of
India 1955, the Imperial Bank was taken over and assets were vested in a new bank, the
State Bank of

Bank Nationalization

After the independence the major historical event in banking sector was the nationalization
of 14 major banks on 19th July 1969. The nationalization was deemed as a major step in
achieving the socialistic pattern of society. In 1980 six more banks were nationalized
taking the total nationalized banks to twenty.

7
Structure of schedule commercial banks

The composition of the board of directors of a scheduled commercial bank shall consist of
whole time chairman. Section 10A of the Banking Regulation Act, 1949 provides that not
less than fifty-one per cent, of the total number of members of the Board of directors of a
banking company shall consist of persons, who shall have special knowledge or practical
experience in respect of one or more of the matters including accountancy, agriculture and
rural economy, banking, co-operation, economics, finance, law, small-scale industry, or
any other matter the special knowledge of, and practical experience in, which would, in the
opinion of the Reserve Bank, be useful to the banking company. Out of the aforesaid
number of directors, not less than two shall be persons having special knowledge or
practical experience in respect of agriculture and rural economy, co-operation or small-
scale industry.

Besides the above the board of the scheduled bank shall consist of the directors
representing workmen and officer employees. The Reserve Bank of India and the Central
Government also has right to appoint their nominees into the board of the banks.

Present scenario of the banks in India:

Banks are extremely useful and indispensable in the modern community. The banks create
the purchasing power in the form of bank notes, cheques bills, drafts etc, transfers funds
bring borrows and lenders together, encourage the habit of saving among people.

The banks have played substantial role in the growth of Indian economy. From the
meager start in 1860 the banks have come to long way. At present in India there are 20
nationalized banks, State bank of India and its seven Associate banks, 21 old private sector
banks and 8 new private sector banks. Besides them there are more than 30 foreign banks
either operating themselves or having their branches in India. The statistical table
hereunder shows the financial position of the banks as on 31.03.2005.

The banks in India are operating through 55530 branches. All the banks together had the
net worth of Rs. 149385 crores as on 31st March, 2005. The banks also had the deposit
base of Rs. 1836985 crores and the advances of Rs. 1151113 crores taking the total
business to Rs. 2988098 crores. During the year 2004-05 the banks had earned the interest

8
income of Rs. 154761 crores. The average net NPA ratio of the banks was also less 3.84%
in year 2005.

Future is bright:

The Information Technology (IT) is becoming an important component of the banking

sector. The customers have become more demanding and they need value added services
from the banks. The foreign banks have raised the expectations of the customers causing
the bank to invest strongly on IT. The Indian banks have started to meet the expectations
of the people by opening both onsite and offsite ATMs. Banks have also started
telebanking, anytime/anywhere banking, mobile banking and Internet banking to give the
facilities to the customers. Banks have also following the RBI sponsored technology
programmes like mail messaging, Electronic fund transfers (EFT), Structured Financial
Messaging System (SFMS), (Real Time Gross Settlement (RTGS), Centralized Fund
Management System (CFMS) and Negotiated Dealing System / Public Debt Office
(NDS/PDO).

Banks have been given more teeth to tackle the Non performing assets by passing the
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest
Act, 2002. Under this Act, the banks can take over the assets of the defaulters either by
themselves or with the help of Court. The power is in addition to the power to recover
through the Debt Recovery Tribunal. The Asset Reconstruction Companies have been
formed which also take over the distress assets from the banks.

9
SWOT ANALYSIS

10
STRENGTH OF ONLINE BANKING
 Quality product and friendly service.
 Online banking provides a quality service.
 Low cost structure due to no physical presence of branches.
 Serving customers efficiently, quickly and efficient.
 Web trust seal security.
 High asset grow.
 24 hours and 7 days call centers.
 Right strategy for the right products.
 Great brand image.
 High degree of customersatisfaction.
 More convenient services by online account.

11
WEAKNESS OF ONLINE BANKING
 No personal human touch
 Chances of confusion due to sevral options
 Presence of complex banking operation
 Difficult for person with lessknowleadge
 Implementing online banks require huge investments
 Online banking is not accepted by the society properly
 Some gaps in range for certain sectors.
 Customer service staff needs training.

12
OPPORTUNITIES FOR ONLINE BANKING
 To be proved as user-friendly
 To be proved as value added service
 Reduction in cost
 Gain in efficiency
 Faster flow of information
 Profit margins will be good.
 It Could extend to overseas broadly.
 It Could seek better customer deal.

13
THREATS TO ONLINE BANKING
 Shorter life of technology
 Lack of technical staff
 Online divide in society
 Location risk
 Cyber crimes
 Great risk involved.
 Very high competition prevailing in the market.

14
 INTRODUCTION TO COMPANY

HDFC BANK
HDFC Bank Limited is a major Indian financial services company based in India,
incorporated in August 1994, after the Reserve Bank of India allowed establishing private
Sector banks. The Bank was promoted by the Housing Development Finance Corporation,
a premier housing finance company (Set up in 1977) of India. HDFC Bank has 1,725
branches and over 5,000 ATMS, in 780 cities in India, and all branches of the bank are
linked on an online real-time basis.
The headquarters of HDFC Bank is in Mumbai, India. And its area Served is worldwide.

Organizational Goals
HDFC’S main goals are to:
a) To have close relation with customer.
b) Be a good premier housing finance institution
c) To covert idea into a proper working.
d) Providing high returns to Shareholder.
e) To grow via diversification by leveraging off the Existing client.

The Subsidiaries of HDFC consist of:

1. HDFC Bank
2. HDFC Mutual Fund
3. HDFC Standard Life Insurance Company
4. HDFC Realty
5. HDFC Chubb General Insurance Company Limited.
6. Credit Information Bureau (India) Limited

7. Other Companies Co – Promoted by HDFC

a) HDFC Trustee Company Ltd.
b) GRUH Finance Ltd
15
c) HDFC Developers Ltd.
d) HDFC Venture Capital Ltd.
e) HDFC Securities Ltd
f) HDFC Holding Ltd.
g) Home Loan Services India Pvt. Ltd

HDFC BANK LIMITED – PROFILE

BACKGROUND
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 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 operationas a Scheduled
Commercial Bank in January 1995.

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 operation to remain the market leader in
mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC
has developed Significant expertise in retail mortgage loans to different market Segments
and also has a large corporate client base for its housing related credit facilities. With its
experience in the financial markets, Strong market reputation, large Shareholder base and

16
unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian
environment.

BUSSINESS 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.

AMALGAMATION OF TIMES BANK & CENTURION BANK OF

PUNJAB
WITH HDFC BANK

On May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC Bank was
formally approved by Reserve Bank of India to complete the Statutory and regulatory
approval process. AS per the Scheme of amalgamation, Shareholder of CBOP received 1
Share of HDFC.
The merged entity will have a Strong deposit base of around RS1,22,000 crore and net
advances of around RS89,000 crore. The balance Sheet Size of the combined entity would
be over RS1,63,000 crore. The amalgamation added Significant value to HDFC Bank in
terms of increased branch network, geographic reach, and customer base, and a bigger pool
In a milestone transaction in the Indian banking industry, Times Bank Limited (another
new private Sector bank promoted by Bennett, Coleman & Co. / Times Group) was merged
17
with HDFC Bank Ltd., effective February 26, 2000. This was the first merger of two
private banks in the New Generation Private Sector Banks. AS per the Scheme of
amalgamation approved by the Shareholder of both banks and the Reserve Bank of India,
Shareholder of Times Bank received 1 Share of HDFC Bank for every 5.75 Shares of
Times Bank.

DISTRIBUTION NETWORK
HDFC Bank is headquartered in Mumbai. AS on December 31, 2009, the Bank has a
network of 1725 branches in 771 cities across India. All branches are linked on an online
real-time basis. Customers in over 500 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
The Bank also has a network of 3898 ATMS across India. 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.

MANAGEMENT

Name Designation

Shyamala Gopinath Chairman / Chair Person

Parsh Sukthankar Deputy Managing Director

Bobby Parikh Director

Partho Datta Director

Umesh Chandra Sarangi Director

Aditya Puri Managing Director

Kaizad Puri Executive Director

Keki Mistry Director

Malay Patel Director

Srikanth Nadhamuni Director

18
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
AutomatedTellerMachines(ATMS).

BUSINESS PROFILE
HDFC Bank caters to a wide range of banking Services covering commercial and
investment banking on the wholesale Side and transactional branch banking on the retail
Side. The bank has three key business Segments:
1) Whole sale Banking
The Bank's target market is primarily large, blue-chip manufacturing companies in the
Indian corporate Sector and to a lesser extent, 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.
2) 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. 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.

19
 3) Retail Banking
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.

Mission and Business Strategy

Our mission is to be "a World Class Indian Bank", benchmarking ourselves against
international Standards and best practices in terms of product offerings, technology,
Service levels, risk management and audit & compliance. The objective is to build Sound
customer franchises across distinct businesses. Our business Strategy emphasizes the
following:
1. Increase our market Share in India expanding banking and financial Services industry by
following a disciplined growth Strategy focusing on quality and not on quantity and
delivering high quality customer Service.
2. Leverage our technology platform and open Scale able System to deliver more product to
more customers and to control operating cost.
3. Maintain our current high Standard for asset quality through disciplined credit risk
management.
4. Develop innovative product and Services that attract our targeted customers and address
inefficiencies in the Indian financial Sector.
5. Continue to develop product and Services that reduce our cost of fund.
6. Focus on high earning growth with low volatility.

PRODUCTS AND SERVICES

1) PERSONAL BANKING SERVICE
A) Account & Deposits
Savings Account
i. Regular Saving Account
ii. Saving Plus Account
20
 iii. Saving Max Account
iv. Senior Citizen Account
v. Payroll Salary Account
vi. Regular Salary Account
vii. Kid Advantage Account
viii. Pension Saving Bank Account
ix. Family Savings Account

Current Account
a. Plus Current Account
b. Trade Current Account
c. Premium Current Account
d. Regular Current Account
e. Apex Current Account
f. Max Current Account

B) Loans
a. Personal Loans
b. Home Loans
c. Two Wheeler Loans
d. New Car Loans
e. Overdraft against C
f. Loan against Securities
g. Loan against Property
h. Commercial Vehicle Finance
i. Working Capital Finance
j. Construction Equipment Finance

C) Investments& Insurance
• Mutual Fund

21
D) Payment Services
a. Net Safe
b. Payzapp
c. Bill Pay
d. Direct Pay
e. Visa Money Transfer
f. Chiller
g. Excise & Service Tax Payment

E) Access Your Bank - One View

a. SMS Alerts
b. Mobile Banking

2) WHOLESALE BANKING SERVICES

a. Funded Services
b. Non Funded Services
c. Value Added Services
d. Internet Banking
e. Clearing Sub-Membership
f. RTGS – Sub membership
g. Fund Transfer
h. ATM Tie-up
i. Corporate Salary a/c
j. Tax Collection
k. Financial Institution
l. Mutual Fund
m. Stock Broker
n. Insurance Companies
o. Commodities Business
p. Trust

22
 3) Product of HDFC Bank:
i. Payzapp
ii. Chillers
iii. Mobile banking app
iv. Smart buy
v. Miss call banking
vi. SMS Banking
vii. Phone Banking

23
 INTRODUCTION TO TOPIC

ONLINE BANKING
Banking where banking Services are delivered over the internet is called online banking.
Its main focuses on digitalize the “core” aspects of banking. The main advantage is it
provide banks and customers more convenient and faster banking Services. The Shift from
traditional to online banking has been a great Step and Should be rather described as
degrees of Service online than through a categorization into yes and no. It involves high
levels of process automation and web-based Services and may include composition to
deliver banking products and provide transaction. It provides the power for users to access
data through desktop, mobile and ATM Services.

ADVANTAGES OF ONLINE BANKING

Quality product and friendly Service:
Online banking help the customer to avail quality Service and to have a friendly link with
the bank.
Low cost Structure :
It is a low cost Structure as it does not require any of the physical assets as building or
machines and it also can be done in a Small phone to a large computer.
Serving customers efficiently, quickly and effectively:
Online banking has been Serving a customer in a faster effective and efficient manner like
never before which has make banking even more fun.
Check balances:
On accounts and view records of your balances.
Web trust Seal Security:
Online banking has been trusted with a Secure manner of work with a minimum chance of
fraud any mishappening.
24 hours and 7 days call centers:
Call center or customer care facility is provided all time to the customer in case of any
problem or for any guidance.
Pay your Bills Online :
Automatically each month with easy-to-set-up auto payment.

24
DISADVANTAGE OF ONLINE BANKING

NO PERSONAL HUMAN TOUCH

The biggest drawback of digital banking is that it does not include any human touch or we
can say it as a relation of human with machine.

CHANCES OF CONFUSION DUE TO SEVERAL OPTIONS

There are lot of confusion as due to availability of many options that might look like
Similar to each other.

PRESENCE OF COMPLEX BANKING OPERATION

There are many complex operation that is out of the understanding of any unprofessional
person this can create problem to the customer.

DIFFICULT FOR PERSON WITH LESS KNOWLEADGE

If a person don’t have exact knowledge of internet than Online banking become difficult
for Such person and chances of cyber fraud also rises.

IMPLEMENTING ONLINE BANKS REQUIRE HUGE INVESTMENTS

Implementing the online banks don’t require everyday cost but the one time cost require is
very high that cannot be afford by everyone.

ONLINE BANKING IS NOT ACCEPTED BY THE SOCIETY PROPERLY

In Some area of India Society is not able to accept the online of bank properly due to
different reason

Online banking in HDFC bank

HDFC bank, one of the major private bank in India has launched a new Scheme of
‘BANK APKI MUTHI ME’x
Under the Scheme of ‘GO DIGITAL’ campaigns

25
26
This Scheme was launched with a hope to turn a Smartphone into a bank to provide
maximum Service to the customer in easiest way. Bank has been providing over 75%
banking transaction in its online banking System.
HDFC Bank also attracts a large Share of market toward ONLINE banking by different
ways as credit points, heavy discount on online deals like Shopping, dining, movies and
much more. Being providing So much of deals to the customers HDFC is able to maintain
its position in the ranking among different financial institute.
In an interview Nitin Chugh, HEAD-ONLINE BANKING, HDFC said,”The initiative also
extends to basic feature-phone user with SMS and missed-call banking as well as a mobile
Site. All that a customer need to do is, Send a text or call a toll-free number to know his
account balance, get a mini Statement, request a check book, or detailed account
Statement. The latter of course is a popular channel for a large number of rural and Semi-
urban customers. The SMS banking Service (and the Android app) is also available in
Hindi for a broader demographic. "With 'Bank Aap Ki Muththi Mein', you can do
everything other than access you locker, and deposit or withdraw cash. Customer
convenience is central to our concept of online. And, there is no bigger convenience than
bringing your bank to the palm of your hand. We are very excited to unveil our 'Bank Aap
Ki Muththi Mein' offering and with it world class experience of banking to our customers.”
5 BROAD FACILITIES THAT E-BANKING PROVIDES:
a) Lower manpower and back office cost.
b) 24*7 Service bank online Services are provided 24 hours a day, 7 days a week and 52
weeks a year.
c) No more QS- there are no queues in an online bank.
d) Convenience.
e) Time Saving
ONLINE SERVICES:
a) Internet Banking.
b) Phone Banking.
c) Mobile Banking.
d) SMS Banking.
e) Missed call Banking.
f) ATMS.

27
g) Watch Banking.
Now monitor, transact and control your bank account online with our net banking
Service.
You can do multiple things from the comfort of our home or office through HDFC
Net Banking. This is our one Stop Solution for all our banking need.

1.5 How Online banking Service provide benefit to us?

a) Internet Banking: Now monitor, transact and control your bank account online with
our net banking Service. You can do multiple things from the comforts of your home or
office through HDFC Net Banking your one Stop Solution for all your banking needs.
Get all account details, Submit requests and undertake a wide range of transaction
online through our HDFC Bank Net Banking Services. Our E-Banking Service makes
banking a lot more easy and effective.
b) Phone Banking: Phone Banking offers you all the conveniences you need to access
your Account, Credit Card, Loans, Demat & Investment Services from the comfort of your
home, office or on the move, all this in your preferred language. Phone Banking Services
are a combination of IVR and Agent offering, depending on the type of transaction. For all
transaction that cannot be completed on the IVR, Phone Banker Services are available.
c) SMS Banking: SMS banking is a form of mobile banking. It is a facility used by Some
banks or other financial institution to Send message (also called notifications or alerts) to
customer mobile phone using SMS messaging, or a Service provided by them which
enables its customers to perform Some financial transaction using SMS.
d) Mobile Banking: Mobile banking is a Service provided by a bank or other financial
institution that allows its customers to conduct a range of financial transaction remotely
using a mobile device Such as a mobile phone or tablet, and using Software, usually called
an app, provided by the financial institution for the purpose. Mobile banking is usually
available on a 24-hour basis.

APPLICATIONS OR PRODUCTS OF HDFC:

PAYZAPP :

28
HDFC BANK LTD has launched PAYZAPP a mobile app that allows the customer to
broadly do 5 things- manage debit/ credit card details, recharge and pay bills, use virtual
card, Send money through wallet and Shop. The app is available only for HDFC BANK
customers and can be downloaded from GOOGLE PLAY STORE this app is available
only for android phone users. PAYZAPP contain a prepaid wallet and a virtual prepaid
card. Bank customers can also Store their credit or debit card in a dematerialized form in
the app and use them for electronic payments. Customers can also Send money to peer
through the app using the IMPS platform. With PayZapp, we can Shop on our mobile at
partner app, buy movie ticket, music and groceries, compare and book flight tickets and
hotels, pay bills and recharge our mobile, DTH and data card.
This Application has help customer to pay and enjoy very easily anywhere and anytime.
CHIILR:

29
India’s leading private Sector bank HDFC has introduced an innovative mobile app called
CHILLR. This app has been introduced by the bank partnering with Mob ME, a Kochi
based technology firm. With this app one can Send money to any mobile phone contacts
like a SMS on 24*7 basis instantly. No information is needed of the recipient, one just
need to follow 3 Steps to access the application: a) Choose the recipient from the list of
chillr contact. b) Enter the amount to be transferred and a message to recipient. c) Enter
Secret M-PIN & press PAY. The recipient will instantly receive money in the bank
account. Chillrs a first of its kind application that is linked directly to the customer bank
account, So there is no need to worry about filling up a prepaid wallet,hence it is highly
Secured. At the moment this app is available on both IOS and Android platform.

DIGITAL WALLET:

HDFC Bank has launched their own digital wallet- merchant payment Service in India,
which they have termed as “The future of mobile payment” and it can be used across
various online retailer outlets. Customers can make payments for their purchase on various
website by remembering their HDFC bank digital wallet detailApart from HDFC bank
account holder, non HDFC bank customers are also eligible to apply for this Service. To
make it easier for merchants to accept payment via digital wallet, HDFC has enabled Near
Field Communication (NFC) based contact less payment facility as well.

30
 CHAPTER -2
LITERATURE REVIEW

31
Review of literature is necessary as it familiarities the researcher with concepts and
conclusions already but earlier analysts. It also enables the present researcher to measure
the scope for future study and to frame appropriate objectives for the proposed evaluation.
Some of the related studies are:
Rahul Bhandari (2019) In their research paper titled “Adoption and diffusion of internet
banking: case of Tunisian banking sector “tried to observe the embracing of Internet
banking in the Tunisian banking industry. The aim is to make out factors that accelerate or
slow down the implementation process. The literature review enables identifying a set of
variables: organizational, individual and structural. The research methodology used within
this study is the case study. Five case studies in banking sector were executed. The sample
is shaped by banks that adopted the Internet Baking as a modernization. The analysis
allowed the willpower of the related dimensions of the aforesaid variables (competition,
perceived benefits, and organizational compatibility). Indeed, this research has exposed
some variables that hamper the implementation of technological innovations.
kartikeyabolar (2018) In their research paper “End-user Acceptance of Technology
Interface In Transaction Based Environment “This paper presents Creators and investors of
technology need information about the customers’ assessment of their technology interface
based on the features and various quality dimensions to make strategic decisions in
improving technology interfaces and compete on various quality dimensions. The research
study identifies the technology interface dimensions as perceived by the end-users in a
transaction based environment (viz. Internet banking) in India, using exploratory factor
analysis. The influence of these dimensions on the utility of technology interface and
hence the usage is examined by Structural Equation Modeling. The moderating role of user
0demographics and technology comfort is also tested. Managerial implications are
discussed.
Anil Kumar and Manoj Kumar Dash (2017) In their research paper “Constructing a
Measurement in Service Quality for Indian Banks: Structural Equation Modeling
Approach”...The aim of this paper is to construct a measure in service quality for Indian
banks and establishes a causal relationship of service attributes performance with customer
satisfaction. The SERVQUAL model is used. The quantification of service quality led to
the attempt to construct an index. The index is constructed using Structural Equation
Modeling (SEM) and American Customer Satisfaction Index (ACSI) as the underlying
frameworks. The analysis is based on data of 200 bank customers from the DelhiNCR. An
adapted ACSI is enhanced and improved to accommodate two exogenous constructs. The

32
results indicate that service quality variables are important antecedents of customer
satisfaction and retention. These antecedents of service quality have a positive significantly
relationship with customer satisfaction. The study concludes with an analysis of how
different dimensions of service quality performance attribute impact on customer
satisfaction and retention. Such a framework should provide valuable insights to the bank
manager to identify key service performance indicators and to design more effective and
efficient marketing and management strategies to satisfy their customer.
Donnelie K Muzividzi, RangariraiMbizi & Tinashe Mukwazhe (2016) In their research
paper “An Analysis of Factors That Influence Internet Banking Adoption among
Intellectuals: Case of Chinhoyi University of Technology“. This paper investigate the
adoption on internet banking has remained sluggish despite the efforts by banks to promote
the technology. The purpose of the research project was to identify the factors that affect
the adoption of internet banking in a bid to construct ways to salvage the situation. The
research focused on intellectuals who better understand technology than the general public.
Rakesh H M & Ramya T J (2015) In their research paper titled “A Study on Factors
Influencing Consumer Adoption of Interne Net Banking in India” tried to examine the
factors that influence internet banking adoption. Using PLS, a model is successfully
proved and it is found that internet banking is influenced by its perceived reliability,
Perceived ease of use and Perceived usefulness. In the marketing process of internet
banking services marketing expert should emphasize these benefits its adoption provides
and awareness can also be improved to attract consumers’ attention to internet banking
services.
Shaza W. Ezzi (April 2014) In their research paper titled “A Theoretical Model for
Internet Banking: Beyond Perceived Usefulness and Ease of Use” tried to inquired
different types of electronic banking like ATM’s, telephone banking, and electronic funds
transfer, Internet banking like has evolved from consumers’ needs to have superior access
to banking services clear of most banks teller-staffed, normal operating hours. This study
presents a theoretical model considered to help researchers and practitioners better
understand the acceptance and adoption of Internet Banking consumer acceptance and
adoption. The paper concludes with discussions of the managerial implications and
avenues for future research
Mr. Vijay Prakash Gupta & Dr. P. K. Agarwal (2013) in their research paper
“Comparative Study of Customer Satisfaction in Public Sector and Private Sector Banks in
India”. This paper gives with the introduction of liberalization policy and RBI's easy norms

33
several private and foreign banks have entered in Indian banking sector which has given
birth to cut throat competition amongst banks for acquiring large customer base and market
share.The purpose of th.is research article is to examine the customer satisfaction among
group of customer towards the public sector& private sector banking industries in India.
Study is cross-sectional and descriptive in nature. The researcher tries to makes an effort to
clarify the Customer Service satisfaction in Indian banking Sector. Descriptive research
design is used for this study, where the data is collected through the questionnaire
Ms. Nisha Malik & Mr. Chand Prakash Saini (Jul 2013) In their research titled on
“Private Sector Banks Service Quality and Customer Satisfaction” A Empirical Study two
Private Sector Banks”. This research paper is an effort to examine the relationship between
service quality and customer satisfaction of two private sectors bank of India. Service
quality has been described as a form of attitude that results from the comparison of
prospect with recital (Cronin and Taylor, 1992, Parasuraman et al, 1985). Gronroos 1982)
argued that customers, while evaluating the quality of service, compare the service they
expect with perceptions of the services they actually receive.
Nabil Hussein Al-Fahim (2012) In his research titled “An tentative Study of Factors
distressing the Internet Banking espousal: A Qualitative Study among Postgraduate
Students” tried to find out the factors that affect the internet banking espousal among
postgraduate’ students in International Islamic University Malaysia (IIUM).Approach-
Semi structured interviews with eight informant; four adopters and four non-adopters on
postgraduate’ students were conducted to explore this issue. The results revealed that
adopters non-adopters realized that internet banking (IB) has quite a lot of benefits and
amenities. However, non adopters were concerned about some factors like trust, ease of
use, awareness and security. The results also showed that adopters had positive influence
on use of online banking and they did not have problems with these factors because they
had sufficient knowledge and experience in using online banking.
Vijay M. Kumbhar (2011) In his research paper “Factors Affecting the Customer
satisfaction In E-Banking: Some evidences Form Indian Banks”. This study evaluates
major factors (i.e. service quality, brand perception and perceived value) affecting on
customers’ satisfaction in e-banking service settings. This study also evaluates influence of
service quality on brand perception, perceived value and satisfaction in e-banking.
Required data was collected through customers’ survey. For conducting customers’ survey
liker scale based questionnaire was developed after review of literature and discussions
with bank managers as well as experts in customer service and marketing.

34
Amruth Raj Nippatlapalli (2010) in his research paper “A Study on Customer
Satisfaction of Commercial Banks: Case Study on State Bank of India”. This paper present
Customer satisfaction, a term frequently used in marketing, is a measure of how products
and services supplied by a company meet or surpass customer expectation. Customer
satisfaction is defined as "the number of customers, or percentage of total customers,
whose reported experience with a firm, its products, or its services (ratings) exceeds
specified satisfaction goals. “Banking in India originated in the last decades of the 18th
century.
Pooja Malhotra & Balwinder Singh (2009) In their research paper “The Impact of
Internet Banking on Bank Performance and Risk: The Indian Experience”. The paper
describes the current state of Internet banking in India and discusses its implications for the
Indian banking industry. Particularly, it seeks to examine the impact of Internet banking on
banks’ performance and risk. Using information drawn from the survey of 85 scheduled
commercial bank’s websites, during the period of June 2007, the results show that nearly
57 percent of the Indian commercial banks are providing transactional Internet banking
services.
Nyangosietal. (2008) In their collected customers opinions regarding the importance of
internet banking and the adoption levels of different internet banking technologies in india
and Kenya. The study highlighted the trends of internet banking indicators in both
countries. The overall result indicated that customers in both countries had developed a
positive attitude and they give much importance to the emergence of internet banking.
Asirvatham (2007) In the journal of internet banking and commerce, said that the hunting
problems of internet banking in Malaysia was the slowness in acceptance of this innovative
distribution channel for banking products & services. This paper addressed the perceived
e-commerce security influence on adoption, of internet banking , the role of national
environment factors such as attitude, subjective norms, perceived behavioural control
factors towards adoption and compared these factors with Singapore internet banking
adoption.
Santhi, C.T. (2006) In her dissertation, pointed out that the customers were benefited by
long term profitable by long term profitable relationship with banks in terms of improved
service quality, personalized care reduction of customer stress, customer empowerment
and so on. It also increased retention, loyalty & satisfaction. The significant impact on net
profit was created by the customers satisfaction on the service quality of various services

35
offered by the banks and its business performance were collected through factors, namely,
empathy assurance and tangibles.
Mushtaq A.Bhat, (2005) In their research paper, offered suggestions to make overall
service quality in banks more effective and efficient. The results of the study led us to the
conclusion that service quality of foreign banks, was comparatively much better than that
of Indian banks and there were service quality variations across demographic variations.
Gopalakrishnan.V.(2004) In this research paper ,revealed that potential customers had
started moving towards foreign banks. The banking prospectus of our public sector banks
had gradually started shrinking. He concluded his paper by saying that to succeed banks
must identify their marketing areas, develop adequate resources, convert these resources
into healthy and efficient services and distribute them effectively satisfying the manifold
tastes of customers.
Sathya Swaroop Debasish (2003) In his paper revealed that the foreign banks operating
in Delhi provided better service quality as compared to private and public sector banks.
Also, he pointed a disappointing fact that the public sector banks which accounted for over
three-fourth of banking business in the country had failed to ease their customers. The
customer service was not set up to the mark. There was a delay in encashment of cheque
book and so on.
Sureshchandar, Rajendran & Anantharaman (2002) In research stated that a positive
relationship between service quality and satisfaction was well established in the literature
in the banking sector. The study also found that the higher likelihood of adopting active
internet banking activities way by large banks, banks with higher involvement in off-
balance sheet activities ,past performance and higher branch network.
Mahadevan ,S. and Dr. Balasubramanian (2001) In their research paper, explained that
interest in the need and measurement of quality was understandably high and most
important. The important relationship between service quality customer satisfaction and
purchasing behaviour remain largely unexplored.
Paulin , M. Ferguson ,R. and Payaud , M. (2000) In their research paper, reported
was their changing account managers were negatively associated with the banks
external effectiveness as measured by the customers judgements of satisfaction and
SQ, their purchase intentions and their willingness to recommended the bank. And
it was indicated that credit unions rate was significantly higher than banks on service
quality like: access, courtesy, communication credibility, security, empathy, tangible
,basic services, fairness.

36
 CHAPTER 3
RESEARCH
METHODOLOGY

37
 3.1 RESEARCH
This topic describes the methods of the study of the Report . Research is defined is a
careful investigation or inquiry especially through search for new facts in branch of
knowledge, market research specifies the information. Research problem is the one which
requires a researcher to find out the best solution for the given problem that is to find out
the course of action, the action the objectives can be obtained optimally in the context of a
given environment. The term research is also used to describe an entire collection of
information about a particular subject.

3.2 OBJECTIVES OF THE STUDY

Main objective of research is to study about the online of HDFC bank.
A.) To know the customer’s preferences and their level of satisfaction towards online
banking services of HDFC Bank.
B.) To know that whether the customer’s getting prompt services from the bank or not.
C.) To know the level of interest of customer towards different products.

3.3 RESEARCH DESIGN

A framework or blueprint for conducting the research project. It specifies the details of the
procedures necessary for obtaining the information needed to structure and/or solve
research problems.

sign the research.

Specify the measurement and scaling procedures.
struct and present a questionnaire or an appropriate form for data collection.
Specify the sampling process and sampling size.
sis.

3.4 Source of Data Collection:

The data are collected by the primary and secondary sources both to know the customer’s
satisfaction level towards present Account holder of HDFC Bank.

38
a) Primary sources:-
The primary sources are those through which data can be collected by first hand. The data
has been collected directly from respondents with the help of questionnaires and analysis
was done on the basis of response received from the customers. The questionnaire has been
designed in such a manner that the consumer’s satisfaction level can be measured easily.

b) Secondary sources:-
The secondary sources are those through which data can be collected by second hand
or already exists. The data has been collected from internet services, books, etc.

3.5 DATA ANALYTICAL TOOL

The data is analyzed on the basis of questioner that was filled by the customers and on
some pre done researches.

3.6 RESEARCH PERIOD

Research work is done in 6 weeks from 2 August to 16 September2021.

3.7 AREA OF STUDY

The area of survey is Panipat City.

3.8 SAMPLE SIZE

Survey of 80 individuals was conducted on the basis of convenience.

3.9 JUSTIFICATION OF THE STUDY

The present study is aimed at to know about level of satisfaction of the customers from
ONLINE marketing of HDFC Bank. There are large numbers of banks available for the
customer which is a challenge for the company. An attempt has been made to find out the
Customer’s perception and their levels of Satisfaction towards HDFC Bank. This study can
be benefited as:
1) Company can know about the level of satisfaction of the customers from ONLINE
banking.
2) Company can attract more customers and can increase their account with different
schemes.
39
3) Company can beat the competition.
4) Company can satisfy its loyal customers by more active working.

3.10 SCOPE OF THE STUDY

The main focus of the study why organization is not aware of level of satisfaction of the
existing customers also wants to know the reasons why customers are not using the net
banking. In some Account there are very low transaction of funds. Organization is even
not aware that for what reasons customer prefers this bank.

3.11 LIMITATIONS OF THE STUDY

All efforts have been made to present a true picture of the satisfaction level of customers
towards online banking of HDFC Bank, but there are certain limitations to be kept in mind
while going through the report.

1) SAMPLE SIZE:-
The size of samples greatly affects the survey results, but the size may not be substantial,
may be too short for the conduct of survey in market.
2) TIME:-
Time constraints were a great barrier as the work was to be completed in a given time
period.
3) INFORMATION MAY BE BAISED:-
Respondent’s answer may be biased; it may be influenced by other factors such as
advertisements, brand ambassador, family members, relatives etc.
4) LIMITED AREA OF STUDY:-
The area of study is also greatly affecting the study done; this study is done in
limited area only in Panipat city.

40
 CHAPTER 4
DATA ANALYSIS &
INTERPRETATION

41
 4.1 What is your Occupation.
Table 4.1 ; Occupation
Feedback No. of Percentage of
Respondents Respondents(N=80)
Business 74 92%

Profession 6 8%

Services 00 0%

Total 80 100%

Soruce:primary soruce

Figure 4.1
INTERPRETATION:
According to the above analysis it is concluded that out of sample of 80 people, 92%
respondents were businessman, 8% respondents were having profession and 0%
respondents were in service.

42
 4.2 For how long you are having an active account in HDFC Bank.
Table 4.2; CUSTOMER AS A PART OF HDFC
Feedback No. of Percentage
Respondents of
Respondents
(N=80)
Less 16 20%
Than 6
Months

Less 30 37%
Than 1
Year

Less 11 14%
Than 2
Years

More 23 29%
Than 2
Years

Total 80 100%

Source:primary source

Percentage of respondents
20%
29%

Less Than 6 Months

Less Than 1 year
Less Than 2 Years
More Than 2 Years
14%
37%

Figure 4.2

43
 INTERPRETATION: The above diagram shows that 20% respondents were a
part of bank for less than 6 months, 37% respondents were a part of bank for less
than 1 year, 14% respondents were a part of bank for less than 2 years and 29%
respondents were a part of bank for more than 2 years.

4.3 What are the reasons that attract you to be a customer of the bank.
Table 4.3; REASON OF ATTRACTION
Feedback No. of Percentage of
Respondents Respondents
(N=80)
Its Image 32 40%

Its Services 24 30%

Its Product 16 20%

All Above 8 10%

Total 80 100%

Source:primary source

Percentage of respondents
50% 40%

40% 30%
30%
20%
20% Percentage Of Respondents
10%
10%

0%
0 1 2 3 4 5

Figure 4.3
INTERPRETATION:
The above diagram shows that 40% respondents were attracted to the bank because
of its image, 30% were attracted because of its services, 20% were attracted because
of its products, and 10% were attracted because of all three reasons.

44
4.4 HDFC Online Banking is providing 100% satisfaction to customers.
Table 4.4; CONSUMER SATISFACTION OF ONLINE BANKING
Feedback No. of Percentage
Respondents of
Respondents
(N=80)
Strongly 18 22%
Agree

Agree 47 47%

Neutral 23 29%

Disagree 2 2%

Strongly 0 0%
Disagree

Total 80 100%

Source:primary source

Percentage of respondents
50% 47%

40%
29% Percentage Of Respondents
30% 22%
20% Column1

10% Column2
2% 0%
0% Column3
Strongly Agree Neutral Disagree Strongly
Agree Disagree

Figure 4.4

INTERPRETATION:
From the above analysis it is concluded that 22% respondents were strongly agree
with the statement , 47% respondents only agree with the statement, 29%
respondents were neutral, 2% respondents were disagree but no respondent was
strongly disagree with the above statement.

45
 4.5 Are you are satisfied with the features and benefits of the products of
HDFC Onine banking.
Table 4.5CONSUMER SATISFACTION OF PRODUCTS
Feedback No. of Percentage of
Respondents Respondents(N=80)
Yes 67 84%

No 13 16%

Total 80 100%

Source:primary source

Percentage of Respondents

16%

Yes
No

84%

Figure 4.5

INTERPRETATION:
The above diagram shows that 84% respondents were satisfied with benefits and
features of online banking products and 16% respondents was not satisfied with
benefits and features of online banking product of the HDFC Bank.

46
 4.6 Using other bank account than HDFC Bank.
Table 4.6 USING OTHER ACCOUNTS
Feedback No. of Percentage of
Respondents Respondents(N=80)
Yes 44 56%

No 36 44%

Total 80 100%

Percentage of Respondents
44%

56% Yes
No

Figure 4.6

INTERPRETATION:
The above diagram shows that 56% respondents were using other bank account than
HDFC Bank and 44% respondents were not using other bank account than HDFC
Bank and it was easy for them how HDFC bank service is better than others.

47
 4.7 Do you know about extra services being provided by the bank.
Table 4.7 INFO. ABOUT EXTRA SERVICES
Feedback No. of Percentage of
Respondent Respondents(N=8
s 0)
Yes 100 100%

No 0 0%

Total 80 100%

Source:primary source

4 Percentage of Respondents
i
g
u Yes
100%
r No

4
Figure 4.7

INTERPRETATION:
From the above analysis it is concluded that all respondents know about extra
services being provided by the bank. It may be because we consider that HDFC has
very good policy regarding customer education, under the campaign GO ONLINE.

48
 4.8 Which of the following extra services of the bank would you like to go
in for.
Table 4.8 MORE ATTRACTIVE SERVICE
Feedback No. of Percentage of
Respondents Respondents(N=80)

Phone 4 5%
Banking

ATM 32 40%

Net 4 5%
Banking

Bill 8 10%
Payment

All Above 32 40%

Total 80 100%

Source:primary source

Percentage of Respondents
40% 40%
40%
35%
30%
25%
20%
15% 10%
5% 5% Percentage Of
10%
5% Respondents
0%

Figure 4.8
INTERPRETATION: From the above analysis of given sample of 80 respondents , 40%
respondents know about ATM services , 5% respondents know about Phone banking , 5%
respondents know about Net Banking, 10% respondents know about Bill Payment and 40%
respondents know about all services.

49
4.9 Do you always get prompt services whenever you use HDFC Online
Banking .
Table 4.9 INFO. ABOUT TYPE OF SERVICE
Feedback No. of Percentae
Respondets of
Respondts
(N=80)

Always 24 30%

Often 27 34%

Sometimes 22 27%

Rarely 6 7%

Never 1 2%

Total 80 100%

Source:primary source

Percentage of Respondents
34%
30% Always
40% 27%
30% Often
Sometimes
20% 7%
2% Rarely
10%
Never
0%
No. Of Respondents

Figure 4.9

INTERPRETATION:
From the above analysis it is concluded that 30% respondents always get prompt
services whenever they use online banking, 34% respondents often get prompt
services and 27% respondents get sometimes prompt services and 7% get rarely
prompt services whenever they use online banking and 2% respondents never get
prompt services whenever they use online banking.

50
 4.10 If another bank provides you same facilities, would you like to switch
to other bank.
Table 4.10 USERS READY TO SWITCH
Fe Feedback No. of Percentage of
Respondents Respondents(N=80)

No, Not At 38 48%

All

I May 18 22%
Consider

Yes, Surely 1 2%

Can’t Say 23 28%

Total 80 100%

Source:primary source

Percentage of Respondents
48%
50%
40%
28%
30% 22%
20% Percentage Of Respondents

10% 2%
0%
No, Not At I May Yes, Surely Can't Say
All Consider

Figure 4.10

INTERPRETATION:
According to the above analysis, it is concluded that most of the respondents would
not like to switch to other bank and 2% respondents would surely switch to other
bank and 28% respondents can’t say anything but 22% respondents may consider
other bank.

51
 4.11 Would you preference to recommend product of HDFC Bank to
Others.
Table 4.11PRODUCT RECOMMENDATION
Feedback No. of Percentage of
Respon Respondents(N=80)
dents
Definitely 38 48%

Probably 18 22%

Might or 22 27%
might not

Probably Not 2 3%

Definitely 0 0%
Not

Total 80 100%

Source:primary source

Percentage of Respondents
48%
50%
40% 27%
30% 22%
20% Percentage Of Respondents
3% 0%
10%
0%
Definitely Probably Might or Probably Definitely
might not Not Not

Figure 4.11
INTERPRETATION:
From the above analysis of given sample of 100 respondents, 48% respondents will
definitely recommend product to others, 22% respondents will probably recommend
product to others, 27% respondents will might or might not recommend, 3%
respondents will probably not recommend, but no respondent will definitely not
recommend product to others.

52
 4.12 What is your overall satisfaction rating with HDFC Bank.
Table 4.12OVERALL SATISFACTION
Feedback No. of Percentage of
Respondents Respondents(N=80)
Very 0 0%
Dissatisfied

Somewhat 1 2%
Dissatisfied

Neutral 24 29%

Somewhat 37 47%
Satisfied

Very 18 22%
Satisfied

Total 80 100%

Source:primary source

Percentage of Respondents
50% 47%
40% 29%
30% 22%
20% 2%
10% 0%
0% Percentage Of Respondents

Figure 4.12
INTERPRETATION:
The above diagram shows that no respondent is very dissatisfied with HDFC Bank,
only 2% respondent is somewhat dissatisfied with the bank, 29% respondents were
neutral and 47% respondents were somewhat satisfied and 22% respondents were
very satisfied with the HDFC Bank.

53
4.13 Which application do you use more frequently for online
transactions.
Table 4.13 application used
Feedback No.of Percentage of
Respondents respondents
(N=80)
Payzapp 30 33%
Paytm 41 47%
Phonepay 4 9%
Others 5 11%

Total 80 100%

Source:primary source

Percentage of Respondents

PayTm
Payzapp

PhnePay
Others

Figure 4.13
INTERPRETATION:
The above diagram shows that, When it was asked for the application they use for
online transactions, response came in a way which was quite surprising. It was found
that 47% of the people are using Paytm, 9% are active on Phonepay, 11% are active
on other platform, whereas Payzapp has gained a popularity of 33%

54
 It was concluded that, within a short span of time the Payzapp application of HDFC
bank has positioned itself strongly in the market.
4.14 Which online service feature of the bank do you use frequently.
Table 4.14 Online feature
Feedback No. of Percentage of
Respondents Respondents
(N=80)
Transfer of funds 50 54%
Download/ view 15 22%
account statement
Make bill 6 11%
payments
Booking tickets 9 13%
Total 80 100%
Source:primary source

percentage of respondents
13%

Transfer of funds
54%
account statement
bill payments
11%
booking tickets

22%

Figure 4.14
INTERPRETATION:
Response show that in a way ,54% of the people were active on online banking for
fund transfer , 22% for account statement, 11% for payment of various bills, & 13%
used medium for the purpose of booking tickets only.
The analysis was recorded that, majority of the section was from business class
which was active on platform for the sole platform of fund transfer.

55
4.15 How frequently do you use online banking.
Table 4.15 Frequently used
Feedback No. of Percentage of
Respondents Respondents
Daily 60 62%
Weekly 8 12%
Monthly 6 11%
Once in a year 5 9%
Never 1 6%
Total 80 100%
Source:primary source

Percentage of Respondents
6%
9% Daily
11%
Weekly
12% 62% Monthly
Once in a year
Never

Figure 4.15

INTERPRETATION :
The analysis was made based upon the use of online banking, & it was found that
62% of the people were using the online facility of the bank on a daily basis, 12% on
a weekly basis, 11% on a monthly basis, 9% were using it for once in a year, & 6%
of them were such that were never been in touch of the online banking.
Conclusion was made that HDFC bank has been successful to a great extent in
adding more &more customers to its online services.

56
 CHAPTER 5
FINDINGS
SUGGESTIONS AND
CONCLUSIONS

57
FINDINGS OF THE STUDY
1) Out of 80 respondents were attracted to the bank because of its earning image. In
their 92% were businessman & 8 % were profession.
2) Out of 80 respondents, most of the respondents were a part of the bank for less than
1 year.
3) Most of the respondents were attracted of HDFC Bank that is providing
100% satisfaction.
4) According to my survey that only 47% respondents were agree of online
banking & 2% respondents were disagree.
5) Only 84% respondents were satisfied with benefits and features of online
banking products of the HDFC Bank & 16% respondents were not satisfied.
6) 56% respondents were using other bank account than HDFC Bank and 44%
respondents were not using other bank account than HDFC Bank.
7) All customers are aware of extra services offered by HDFC Bank.
8) According to my survey that Most of the respondents are know about & go
for ATM services & 5% respondents know about phone banking.
9) The prompt service quality & security leads to customer satisfaction &
ultimately, to customer loyalty.In the survey only 30% respondents always get
prompt services & 2% respondents never get prompt services whenever they use
online banking.
10) It is concluded that most of the respondents would not like to switch to other
bank & only 2% respondents would surely switch to other bank.
11) Out of 80 respondents 48% of the respondents will definitely recommend
product to others.
12) According to my survey that no respondent is very dissatisfied with HDFC
Bank, and most of the only 2% respondents were somewhat dissatisfied with the
HDFC Bank.
13) Majority of the Respondents were using the online Banking applications offered
by the bank.
14) Majority of the section which was active on online banking because it providing
the best facilities in comparison to other bank.
15) Most of the people were still not sure about the safety and security of going
online for availing banking services on a daily basis .

58
SUGGESTIONS

1) Bank should try to retain the loyal customers.

2) Bank should try to attract customers by its services and products.
3) Bank should try to change the perception of the customers in a positive way
that it provides 100% satisfaction to its customers.
4) The bank should enhance their services according to the needs of the
customers so that they can be satisfied with benefits and features of the current
account.
5) Bank should satisfy the customer in such a way that they could not switch to
other bank.
6) Bank should focus on net banking and phone banking.
7) The bank should make its procedures less time consuming.
8) Bank should try to satisfy its customers in overall performance
9) The bank should make some efforts to familiarize the customers to various
services through demonstration.
10) The bank should take steps to create a trust in mind of customers towards
security of their accounts.
11) The HDFC bank should introduce more services which can be accessed
through ONLINE banking, net banking like advice on investment ,TDS etc..
12) The bank should be more flexible in order to compete with other rival banks.
13) HDFC bank should also strive to increase its reach to the rural areas for
increasing its customer base.
14) The bank should make effort to familiarise the customers to various services
through demonstration.
15) The website should be made mobile frequently & should be updated on a
regular basis.

59
CONCLUSION

Online banking, which is the modern technology which is offered by the banks to their
customers so that they can conveniently conduct their banking transactions at a time that
suits them and can access their bank account 24 hours a day and 7 days a week . Latest
and better ways of customer service are essential for the growth of the bank and for the
banking system as a whole. The effect of online banking on worldwide banking system is
to augment or facilitate existing banking and payment mechanisms, primarily by making
many transactions cheaper, faster, more secure, and more convenient.
Moreover, the growth of information technologies in the world has been phenomenal as
well. Because of these technologies, banks are being able to reach their customers
anywhere at any time.
Banks must be concerned about the attitudes of customers with regard to acceptance of
online banking. The importance of security and privacy for the acceptance of online baking
is a very important issue and it was found that people have weak understanding of online
banking, although they are aware about risk. The present study shows that customers more
reluctant to join new technologies or methods that might contain little risk.
Hence, banks should design the website to address security and trust issues as well. To
sum up , opportunities in online banking are immense but he only need is to explore them.
The nature of banking services may still be the same but the way in which they are being
offered has been changed dramatically. Online banking needs to shift now from product
centric to customer centric i.e. to design services according to the needs dreams and
expectations of the customers. The main aim of online banking is to making transactions
through online poses and make customer more beneficial. Providing online banking is
increasingly becoming a “need to have” than “nice to have” services. This means the
application server easily deployable and accessible.

60
BIBLIOGRAPHY
 BIBLIOGRAPHY
BOOKS
1. MACMILLAN , Legal and regulatory aspects of banking, 2 nd edition
2. ARIHANT PUBLICATIONS , Banking Awareness , Seventh Edition
3. COOPER & SCHINDLER, Research Methodology Method, TMH,”6th Edition”.
4. KOTHARI, C.R; Research Methodology, Wishawa Parkashan, “2nd Edition”.
5. SALKIND, NEIL, Exploring Research, 3rd Edition, Prentice Hall, NJ, 1997.

REFERENCES
o Malhotra, P., & Singh, B. (2009). The impact of internet banking on bank
performance and risk: The Indian experience. Eurasian Journal of Business and
Economics, 2(4), 43-62.

o Nyangosi.,(2008)..online banking as a tool for customer relationship

management, volume (2) issue ,pp 187-190

o Paulin.,(2000)..A theoretical Model for Internet banking: beyond perceived

usefulness and ease of use. Archives of Business Research, 2(2), 31-46.

o BOLAR, K.,(2014).. End-user Acceptance of Technology Interface In Transaction

Based Environment. Journal of Internet Banking & Commerce, 19(1).

o Gherib, D. (2014). Adoption and diffusion of internet banking: case of Tunisian

banking sector. Global Business and Economics Research Journal, 3(6), 1-29..

o Al-Fahim, N. H. (2013). An exploratory study of factors affecting the internet

banking adoption: A qualitative study among postgraduate students. Global Journal
of Management and Business Research.

o Bhandari Rahul., “HDFC Bank bags the ‘Best Bank in India’ title by Finance
Asia magazine- expect this big measures in ( 2019) from the lender”. Over
the next few years, it also plans to expand its virtual relationship managers
from 5.7 million to 20 million. International Journal of Business information
Systems .,3 (4).
o Kartikeybolar Ismail A.,Gokhru A.(2018) A study on cutomers preferences on
services provided by banks in the city. The Journal of Banking Studies ,New
delhi -Customer satisfaction on usage of internet banking, innovative
banking60-86.
o Kumar, A., & Dash, M. K. (2016). Using DEMATEL to construct influential
network relation map of consumer decision-making in e-marketplace. International
Journal of Business Information Systems, 21(1),

o H. M.J.D.,Ramya Rakesh.,(2015). An analysis of customers satisfaction to inquire

information and carry out most banking services such as account balance inquiry.
9(1), 60-67.

o H. M.,Rakesh, & Ramya, T. J. (2014). A Study on Factors Influencing Consumer

Adoption of Internet Banking in India. International Journal of Business and
General Management, 3,

o Dahake, A. G., Ghugal, Y. M., Wankhade, R. L., Landage, A. B., Vashi, J. M.,
Desai, A. K., ... & Dubey, S. K. (2013). Chemical, Civil and Mechanical
Engineering Tracks of 3rd Nirma University International Conference on
Engineering (NUiCONE2012)

o Nabil Hussein (2012) customer perspective on online business value ; A case

study on online banking , volume 1 ,no.pp 12

o HON'BLE, M. R., MR, E., AHMED, J. B. D., HON'BLE, M. R., DB III HON'BLE,
M. R., NANDRAJOG, P., ... & HON'BLE, M. R. The Roster of seating of Hon'ble
the Chief Justice and Hon'ble Judges wef 29.04. 2014.

o Kumbhar, V. M. (2011). Factors affecting the customer satisfaction in e-banking:

Some evidences form Indian banks. Management Research & Practice, 3(4).

o Amruth Raj. (2010)., Journals of online banking and commerce ,Volume (12),no.2
pp,2f Srauds in bank are online with phishing.

o Gupta, S. H. O. B. H. A. N. A., & Verma, S. H. I. L. P. I. (2007). Impact of KVK on

knowledge level of farm women. J Rural Agric Res, 13(2), 87-89.

o Muzividzi, D. K., Mbizi, R., & Mukwazhe, T. (2005). An analysis of factors that
influence internet banking adoption among intellectuals: case of chinhoyi university
of technology. Interdisciplinary journal of contemporary research in
business, 4(11), 350-369.
Websites
1) www.hdfcbank.com
2) www.scribed.com
3) www.google.co.in
4) www.hdfcbank.com/personal/prd_glance.htm
5) www.slideshare.com

6) www.profit.ndtv.com
7) www.en.wikipedia.org.
8) www.rbi.org.
9) www.moneycontrol.com
10) www.yesbank.in.
ANNEXURE
 SURVEY QUESTIONNAIRE FOR THE TOPIC
A STUDY OF
ONLINE BANKING SERVICES IN CONTEXT TO
HDFC BANK

Sir/Ma’am,
This questionnaire is meant for educational purposes only.
The information provided by you will be kept secure and confidential.

NAME- __________________________________________________
CONTACT- ______________________________________________
GENDER-________________________________________________

Q1. What is your Occupation?

a) Business _____________
b) Profession _____________
c) Service _____________

Q2. For how long you are having an active account in HDFC Bank?
a) Less than 6 months ____________
b) Less than 1 year ____________
c) Less than 2 years ____________
d) More than 2 years _____________

Q3. What are the reasons that attract you to be a customer of the
bank?
a) Its image _____________
b) Its service _____________
c) Its product _____________
d) All of the above _____________
 Q4. HDFC online Banking is providing 100% satisfaction to
customers?
a) Strongly agree ____________
b) Agree ____________
c) Neutral ____________
d) Disagree ____________
e) Strongly disagree ____________

Q5. Are you are satisfied with the features and benefits of the
products of HDFC online banking?
a) Yes ____________
b) No ____________

Q6. Other bank account than HDFC Bank?

a) Yes ____________
b) No ____________

Q7. Do you know about extra services being provided by the bank?
a) Yes ____________
b) No ____________

Q8. Which of the following extra services of the bank would you like
to go for?
a) Phone banking ____________
b) ATM ____________
c) Net banking ____________
d) Bill payment ____________
e) All of the above ____________
 Q9. Do you always get prompt services whenever you use HDFC
online Banking?
a) Always _____________
b) Often _____________
c) Sometimes _____________
d) Rarely _____________
e) Never _____________

Q10. If another bank provides you same facilities, would you like to
switch to other bank?
a) No, not all _____________
b) I may consider _____________
c) Yes ,I will _____________
d) Can’t say _____________

Q11. Would you recommend product of HDFC Bank to others?

a) Definitely ______________
b) Probably ______________
c) Might or might not ______________
d) Probably not ______________
e) Definitely not ______________

Q12. What is your overall satisfaction rating with HDFC Bank?

a) Very dissatisfied _____________
b) Somewhat dissatisfied _____________
c) Neutral _____________
d) Somewhat satisfied _____________
e) Very satisfied _____________
 Q13. In general, what do you feel about online banking as a new
system of delivering banking services ?
a) Vital _____________
b) Essential ______________
c) Desirable ______________
d) Cannot say exactly ______________

Q14. How do you let your customers know about online banking
Services you provide?
a) Through bank officials ____________
b) Advertisements in print media____________
c) TV & Radio ____________

Q15 Indicate by ticking the services offered through ATM in your

Bank?
a) Withdrawl of cash _____________
b) Deposit of cash & cheque _____________
c) Balance check _____________
d) Order cheque book _____________