bilal 26.07.15 finalsain

PROJECT REPORT ON
COMPARISON OF HDFC BANK SERVICES OVER NATIONALISED
BANKS WITH RESPECT TO DIGITALIZATION
IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE
DEGREE OF MASTERS IN BUSINESS ADMINISTRATION
Submitted by
BILAL AHMAD BHAT
MBA- GENERAL 2014-16
Under the guidance of
Mr. SHAAD HABEEB
1

JULY 2015
DEPARTMENT OF MANAGEMENT
Jamia Hamdard University, New Delhi – 62
DECLARATION
I hereby declare that the Project report entitled “COMPARISON OF HDFC BANK
SERVICES OVER NATIONATIOLIZED BANKS WITH RESPECT TO
DIGITILIZATION” is my original work and has not been published or submitted for
anydegree, diploma or other similar titles elsewhere. This has been undertaken for thepurpose
of partial fulfillment of Master of business administration at Jamia Hamdard (Hamdard
University), New Delhi .
Dated: 28.07.15
BILAL AHMAD BHAT
2

ACKNOWLEDGMENT
It is really a matter of pleasure for me to get an opportunity to thank all the people who
directly or indirectly helped me to complete my project report , “Comparison of HDFC
Bank Services over Nationalized Bank Services with respect to Digitalization”.First of all I
am extremely thankful to my University ,Jamia Hamdard for providing me with this
opportunity and for all its cooperationand contribution. I also express my gratitude to my
project mentor and guide Mr. Shaad Habeeb. I am highly thankful to our respected project
guidefor giving me the encouragement and freedom to conduct my project.I am also grateful
to all my faculty members for their valuable guidance andsuggestions for my entire study.I
would also like to thank the HDFC team for extending their valuable time andcooperation.
Last,but not the least I thank my project supervisor Mr.Asif Iqbal, Branch Head,Bijbehara
branch of HDFC bank for his kind guidance and co-operation. My sincere thanks goes to
Mrs.Nighat who also guided me during my internship.
4

EXECUTIVE SUMMARY
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 “Comparison of HDFC Bank Services
Over Nationalized Banks with respect to Digitalization”.
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 performingwell?
To find out answers to these questions I undertook a survey of HDFC and SBI branches of
banks at Bijbehara, Anantnag. 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 “Comparison of HDFC Bank Services over Nationalized Bank Services
with respect to Digitalization”.
5

TABLE OF CONTENTS
ACKNOWLEGEDMENT.......................................................................................................3
EXECUTIVE SUMMARY......................................................................................................4
CERTIFICATE........................................................................................................................5
CHAPTER 2.........................................................................................................................................................21
REVIEW OF LITERATURE..................................................................................................................................21
DIGITALIZATION: "BANKS ARE AT A CROSSROADS.".....................................................................................................21
ATOM IS A NEW UK BANK THAT'LL HAVE NO BRANCHES, JUST APPS...........................................................27
INTRODUCTION
6

Chapter 1
INTRODUCTION
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 depositrates 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 hisoccasional 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 thatwill more than just clear his cheque and
updates his passbook: he wants a bank that cares andprovides great services.So does HDFC
bank meet these heightened expectations? What are the customers perceptions of service‟
7

quality of the banks? Which dimension of service quality of HDFC bank is performingwell?
To find out answers to these questions I undertook a survey of HDFC and SBI branches of
banks at Bijbehara, Anantnag.A lot of surveys have been done in the past to understand the
aspect of customer satisfaction andto find out the customer friendly banks. My research is
conducted to find out “Comparison ofHDFC Bank Services over Nationalized Bank Services
with respect to Digitalization”.
8

COMPANY PROFILE
HDFC Bank
The Housing Development Finance Corporation Limited (HDFC) was amongst the first
toreceive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in
theprivate sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994.
Thebank 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 Banking 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
soundcustomer franchises across distinct businesses so as to be the preferred provider of
bankingservices for target retail and wholesale customer segments, and to achieve healthy
growth inprofitability, 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.
9

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
managementand 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
corevalues 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.
10

 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 4014 branches spread over 2464 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 astrong 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 11760 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
inIndia 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
inmortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC
hasdeveloped significant expertise in retail mortgage loans to different market segments and
alsohas a large corporate client base for its housing related credit facilities. With its
experience in thefinancial markets, a strong market reputation, large shareholder base and
unique consumerfranchise, HDFC was ideally positioned to promote a bank in the Indian
environment.
11

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 variousbusinesses 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 Machines
(ATMs).The Bank has made substantial efforts and investments in acquiring the best
technology available internationally, to build the infrastructure for a world class bank. The
Bank's business is supported by scalable and robust systems which ensure that our clients
always get the finestservices we offer. The Bank has prioritized its engagement in technology
and the internet as one of its key goalsand has already made significant progress in web-
enabling its core businesses. In each of itsbusinesses, the Bank has succeeded in leveraging
12

its market position, expertise and technology tocreate 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 arrange 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
treasuryproducts 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 theIndian
corporate to small & mid-sized corporate 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
13

management for its corporate customers. Based on its superiorproduct delivery / service
levels and strong customer orientation, the Bank has made significant inroads into the
banking consortia of a number of leading Indian corporate including multinationals,
companies from the domestic business houses and prime public sector companies. It is
recognized as a leading provider of cash management and transactional banking solutions to
corporate customers, mutual funds, stock exchange members and banks.
Retail Banking Services
The objective of the Retail Bank is to provide its target market customers a full range
offinancial products and banking services, giving the customer a one-stop window for
allhis/her banking requirements. The products are backed by world-class service and
deliveredto 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. Its
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 Master Card 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.
14

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 qualityinclude 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 asubject of great interest to
service marketing researchers.Service quality has been defined by various experts in various
ways as: 'Service Quality is thedifference between customers' expectations for service
performance prior to the serviceencounter 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 thedifference 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
customerexpectations .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 consistsof 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).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 theprime motivating factor for obtaining the services (e.g. money
15

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 theattitude 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 ATM machine.The most popular dimensions of service
quality--features five dimensions: tangibles, reliability, responsiveness, empathy, and
assurance. The tangibles dimension corresponds tothe aforementioned physical environment
aspect, the reliability dimension corresponds to the service outcome aspect, and the remaining
three represent aspects of interaction quality.Both the costs and the revenue of firms are
affected by repeat purchases, positive word-of- mouth recommendation, and customer
feedback. Moreover, there is strong evidence that service qualityhas either a direct influence
on the behavioral intentions of customers and/or a n indirect influence on such intentions,
mediated through customer satisfaction.RATER is an instrument that might be used to define
and measure banking service quality 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‟
withother 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. Bank managers can use the
RATER model and its dimensions first to identify the followingissues:
To identify those areas where improvement should be made and resources can be allocated.
Forinstance, they need to know the level of quality in their banks and they can manipulate to
makebank-wide improvement in quality performance. Also they can use benchmarking to
16

comparetheir performance and other banks , which have already implemented quality‟
program that willhelp to prioritize the quality management efforts.
17

Dimensions of service quality:
• RESPONSIVENESS
• RELIABILITY
• ASSURANCE
• EMPATHY
• TANGIBILITY
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
andcustomer satisfaction in banking institutions. Banks must provide error free service and
secureonline 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 itscustomers. Researchers examining the responsiveness of banking services
have highlighted theimportance of perceived service quality and customer satisfaction.
Assurance: Customer expects that the bank must be secured and the behavior of the
employeesmust be encouraging.
Empathy:Individual attention, customized service and convenient banking hours are very
muchimportant in today’s service.
In order to achieve better understanding of service quality in banking sector, the proposed
five service quality dimensions are conceptualized to illustrate the overall service quality of
the banking in relation to customers and providers perspective. Banking was in the sector‟
18

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 firms 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 customer’s 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
19

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.
20

Chapter 2
REVIEW OF LITERATURE
Digitalization: "Banks are at a crossroads."
Digitalization is forcing banks to undergo the most extensive transformation in their history, says
Holger Spielberg. Credit Suisse's new "Head of Innovation" for its Digital Private Bank explains
the financial revolution.
Mr. Spielberg, in an industry report, PwC writes the following: "Banks find themselves in the
midst of a transition with the term 'digital' at its core"; in another report, McKinsey &
Co. write: "Getting digital banking right is a matter of life and death." Are we in the
midst of the greatest revolution in the history of banking?
Holger Spielberg: That was a long question. The answer is much shorter: Yes, that's right.
Why?
Banks today are at a crossroads. On the one hand, they are still processing their recent
history. On the other hand, we can already see the first effects of a digitalization of society,
an issue that banks are still struggling with. Bank branches are hardly needed any longer.
Payments and money transfers can be handled by platforms and robots. These basic functions
will be open and free, they do not necessarily require a bank. And soon, we will be able to
pay our telephone bills using social media.
The retail business is under pressure.
Yes , and the banks are in a bad position. The competition is closer to the clients and comes
mostly from outside of the world of finance – Apple, Face book, or Swisscom in Switzerland,
21

which is making a strong push into finance. Add to that the fact that "fin techs," startup
companies in the financial area, are springing up like mushrooms. Worldwide, around seven
billion francs are being invested in these companies annually. We are seeing a lot of fin techs
in the retail area right now, as well as increasingly exciting approaches in wealth
management.
But isn't the outlook in private banking better?
In this area, we find ourselves in a relatively strong position – for now. This business is much
more complex and the usually quite exclusive clients are less price-sensitive than in the retail
business. Security, relevance, expertise and protection of the private realm are just as
important. But here, too, there is a digital revolution.
One hears a lot about the "Digital Private Bank." Until now, though, this has seldom meant
more than graphically attractive portfolio analyses and access to the client's own data
using any device. Is that a revolution?
First of all, yes, you are right that user interfaces and mobile access are truly the first things to
have changed. But it was necessary. Our interaction with the digital world has undergone
enormous changes in a very short time. No one was demanding a screen that could be
manipulated by swiping back and forth, but once it was here, everyone thought it was cool.
Innovations like this will continue to come. They aren't specifically related to banking, but
we are affected by them and have to do our part. Otherwise, we run the risk of becoming
alienated from our clients.
Secondly?
Banks have been forced to change their business model in recent years due to the financial
crisis and more stringent regulatory requirements. In addition, there is a huge amount of
pressure on the relationship of costs to revenue. It's about achieving a whole new level of
efficiency on the one hand, while also presenting new growth. The digital world offers an
opportunity here, but many European banks are still reacting too hesitantly. Visually
augmented graphics are just a band-aid, but not a model for the future.
What will it take?
That is the third part of the answer. I believe that we need to somewhat rethink banking,
consistently with clients in mind. With all the buzz about fin techs, banks have the potential
to establish themselves sustainably for the future. So we have to rethink our services from a
22

push to a pull model. My vision is to see banking become integrated in the lives of our
clients, with more relevance and a great deal of trust. For the banks, this means investing
intelligently in new strategic competencies, such as partnering. If the banks really trust in
themselves, they can be better than any start-up.
Why are American banks more advanced in this regard?
For a long time the American banking system was very inefficient and was still functioning
in part on a manual level – think checks, for example. There was extreme pressure to
innovate, compounded by the fact that digitalization was much more advanced in other areas.
In addition, the economic crisis hit earlier, and US banks were forced to cut costs, which is
achieved through digitalization. Besides, regulations and data protection are less stringent
than they are here. And, finally, the American banks are serving an enormous market, which
is a very important aspect for digitalization since economies of scale are what count here.
You don't earn much for individual clients; you need high volumes to pay off the high
development costs and expensive software solutions.
Is it also a question of mindset?
Yes. The way I see it, US banks have fewer reservations about Silicon Valley, fintech
ventures and technological innovations; we could learn something from them in that regard.
How is Credit Suisse responding to the digital challenge?
By taking specific steps: In order to really change things, we are changing the way we work
and approach the topic. This starts with our team, which we are augmenting with talented
people from other industries, startups and with digital backgrounds. I'm also trying to set the
tone, based on my 15 years of experience in Silicon Valley. We are transforming all of our
activities to be more agile, and with our office layout we've put the business and developer
teams together. We can point to the measurable, positive experiences we've had with our
"factory" in Singapore in this regard.
What's ahead for the long term?
Zurich and Silicon Valley will have innovation labs after 2020. There, we hope to create
interfaces with other developments in society, technology and research, as well as realize
projects and prototypes for shaping our own banking future. These labs should also become
sources of disruptive thinking and impulses, which will redefine banking and completely
reconfigure processes and added value for clients in Wealth Management, for example. With
23

the Digital Private Bank, we find ourselves at the beginning of the bank's transformation. A
number of other banks are currently also taking on digitalization for themselves. I am
convinced that, in the long term, the banks that will be successful are not those that offer the
coolest features right now. Rather, success must be measured by the bank's ability to
implement digital changes sensibly and efficiently on an organizational level.
What will the role of the client advisor be?
In our philosophy, the client advisor will play an important personal role. But roles and tasks
have to change in order to remain more relevant to the lives of our clients in the future. The
fact is that we are not taking the right approach with the 30-year-old Google millionaires or
the Millennials. A traditional "wine and dine" approach is working less and less in this
segment, where the advisor is seen as more of a coach. These clients want support in how to
handle money in general, how to set financial goals and how to make them achievable.
Will Credit Suisse be on a first-name basis with its clients, addressing them using the
informal "you"?
We are a global company, so "you" is already just "you"! But that should ultimately be left up
to the client. After all, using digital channels in addition to client advisors also creates a much
more personal relationship with our clients.
Swiss banks stand for discretion. The digital world stands for the opposite: absolute
openness. Isn't that a contradiction?
"Swissness" is a strong value established over centuries and which, at its core, remains a solid
one. Especially these days when so much is "shared," trust and security mean a lot. This is
what the Swiss banks should build upon, redefining discretion in a digital world.
How?
If I want to transfer money from one social media platform to another, as previously
mentioned, the underlying platform must be able to guarantee data security. That could be a
Swiss bank. The exciting thing is that digital also means direct person-to-person interaction.
New technologies can help here and represent an opportunity for Swiss banks with their
tradition and international reputation.
Where is mobile payment actually ideal?
24

Number one in mobile payment is my former employer PayPal, simply because a significant
portion of e-commerce is conducted using mobile end devices and PayPal is innovative. Yet
Starbucks is number two. They are not actually even involved in the mobile payment areas,
but they have an app for ordering a latte, earning loyalty points or buying someone a coffee –
and along the way you can also pay the bill. It works like Uber, where everything is
integrated in a single app: ordering a taxi, displaying wait times, entering the destination,
rating the driver – and paying, too, including a digital receipt which can be automatically
saved in an expense report. The payment function is successful because it is embedded in the
app. Really , why should I carry cash?
Consequences of Digitalization in future
By 2016, the number of bank branches is expected to reduce by over 50% in northern Europe
and by 15% in southern Europe compared to 10 years before. This means that not
only basic bank account services (e.g. wire transfers and payments) will be only
offered through remote channels of communication, but also for instance investments,
mortgages and any type of service that currently is or in the future will be offered by
banks.
But in countries like Italy where regulations still require the written signature and in some
cases the certification by a public notary for the validity of certain documents, the
opportunity of relying on so called digital signature tools and other remote systems of
execution is crucial. Indeed, such tools provide the same evidentiary value of written
signatures effective towards any third party which the consequential major advantage for
banks that through their Internet banking platforms will be also able for instance sell financial
instruments of third parties.
However, the implementation of such tools requires to rely on third party providers that act
as “certification entities” and therefore certify the link between the signature tool and the
relative holder that is “presumed” i.e. the burden of proof to challenge such link will be on
the customer. Additionally, stringent obligations shall be complied with in relation to the
provision of information to customers also to avoid that the signature is then challenged.
Most of the obligations relating to such functionalities can be outsourced though but since the
25

bank is still the primary contact with customers, this change also requires an ad hoc training
of internal staff and the implementation of adequate policies.
Likewise remote channels of communications can be used for notifications and in this respect
Italy has introduced the so called “certified email” tool whose evidentiary value is the same
as a registered letter with return receipt and is now compulsory for all Italian companies and
to deal with public entities.
The digital challenge for banks needs also a new approach on communications with
customers which requires not only the provision of financial data and of consultancy and
customer support services on mobile platforms (e.g. video communications with a dedicated
consultant), but also for instance the usage of social media to set up and maintain the
relationship with customers. However, the usage of social media can trigger some legal risks
especially for the “viral” effect of activities performed on the Internet. Adequate internal
rules shall be adopted to avoid misconducts that might have a major negative impact on the
bank’s reputation.
As far as Italy is concerned, the Internet banking sector is still behind some European
countries but according to estimates the number of customers using an home or corporate
Internet banking account will be by 2017 almost 50%. Therefore major potentials are out
there and it appears that digitalization is not anymore an option but an obligation.
Digitalization in HDFC Bank
MUMBAI: HDFC Bank is working on digitizing every process that does not require a
statutory `wet signature'. The bank will digitize submission of Form 15H which presently has
to be physically submitted by senior citizens to the branch to avoid tax deduction at source.
Speaking to Times of India, Nitin Chugh, head of the bank's digital banking said that the
bank was moving to a system where customers would be required to use physical forms only
where there is a legal requirement for the customer to sign such as on an account opening
form. Besides this, other digital initiatives are aimed at migrating more customers to
26

transacting through mobile phones. The bank mobile banking application has seen a sharp
increase in usage after it improved the utility of the platform facilitating as many as 75
operations through the mobile interface. The value of transactions on the mobile platform
increased five-fold between June and October 2014 to Rs 3540 making it the market leader in
terms of value."We are seeing very quick adoption of mobile banking. Although many senior
citizens still continue to use only branches, those in their 40s are using the internet and ATM.
Those in their 30s use both mobile and internet while those born earlier use only the mobile,"
said Chugh. He added that mobile banking already had more functionality as compared to the
website as customers now get location based offers coupled with directions to the nearest
ATM or branch using the map feature. The other big trend that the bank is riding according to
Chug is tie-ups where it provides third-parties, often start-ups, space on its online platform.
The bank shares its application programming interfaces (APIs) allowing accountholders to
seamlessly buy third party products. Users of social media are already experiencing such
partnerships where social media platforms tie-up with other service providers. The advantage
is that the customer need not provide any of his details and need not authenticate himself. For
instance, if one chooses to buy a health insurance policy from HDFC Bank online the
personal details are automatically captured and the customer has to only select the cover. "IT
experts describe this trend as API-fication, where we provide secured access to third-parties,
“said Chugh. According to Chugh expectations from customers are changing and it not
necessarily to do with what competition is offering on banking. "This is why we are
reworking our net banking site in a way that makes it as intuitive as using an iPad without a
manual," said Chugh.
Recent advancements in Banking
AtomisanewUKbankthat'llhavenobranches,justapps
Banking is a bit of an old boys' club dominated by a few huge, lumbering corporations, but
up-start Atom thinks it's time for a new player with a different approach. Atom wants to take
mobile banking seriously; so seriously, in fact, that it aims to exist almost solely as a mobile
app. The company has just been granted a UK banking licence and plans to launch later this
27

year, first using mobile apps to offer its services before graduating to desktops in due course.
Atom will have a 24-hour support team available by phone, email, web chat and social
networks, but the idea is you can do everything, even open an account, from within the
mobile app.
By focusing on the mobile experience, Atom hopes it can make dealing with your finances
altogether more convenient. Its apps won't simply be for checking your balance and pushing
money around, too. They'll include support for biometric security and will feature "unique
and engaging ways to manage money." Atom will effectively be "branch-free," but by launch
it'll have a traditional, high-street bank partner that will accept cheque and cash deposits from
Atom customers -- similar to how the branchless bank First Direct operates, though it's
owned by HSBC, making the logistics a little simpler. Of course, you'll get a standard debit
card, too, for paying with plastic or extracting cash from ATMs.
Atom isn't the only company pursuing a fresh approach to banking. Simple and
Movenbank are digital-first banks already operating in the States, and Mondo is another UK
outfit that wants to place all emphasis on the mobile experience, with apps that also try to
help you manage your money better. Mondo's doing things a little differently from Atom,
though. Instead of using existing banking infrastructure and layering its front-end over the
top, Mondo is starting from scratch (building what's known as the "full stack"). It might mean
Mondo will be later to launch, but it argues that having immediate access to your real-time
data through its own systems will allow it to make the customer experience that little bit
better.
Britain just gave the green light to a bank with no branches and no website just an apps
Atom Bank, the online-only challenger bank, just won a banking licence to operate in the UK
and plans to launch later this year.
Unlike traditional banks - and even some challengers - Atom Bank won't have any branches
or even a website initially, operating purely though a mobile app.
Customers will be able to open accounts and carry out all their banking activity just from
their smart phone. The 1-year-old startup said it wants to "set new standards for the banking
28

sector" when it comes to technology. The company plans to use 3D visualizations and
gaming technology for its app, and plans to integrate cutting edge biometric security.
CEO Mark Mullen says: "We've set about designing a banking app that's in tune with how
people think about their money. Taking an app-based approach allows us to use all the
features of your mobile device to provide a slick and highly personalized experience. It will
offer total control and transparency with a depth that is beyond anything else on offer in the
market today."
Mullen previously ran HSBC's telephone banking branch First Direct. He was recruited to
run Durham-based Atom Bank by founder Anthony Thomson, who also co-
founded challenger bank Metro Bank.
Atom Bank is backed by financial heavyweights including star fund manager Neil
Woodford and Jim O'Neill, the former Goldman Sachs economist famous for coining the
term BRICs to refer to Brazil, Russia, India and China. The company raised £25 million
($39.4 million) last year.
29

Chapter 3
RESEARCH METHODOLOGY
OBJECTIVE OF THE STUDY
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 any
nationalized bank.
 To find out and compare the level of perception of the customers from the service
quality offered by the banks.
 To compare which service quality dimension of the HDFC or nationalized 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
torecognize the lacunae in the system and thus provide key areas where improvement is
requiredfor 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 sustainablecompetitive advantage, and enhance efficiency.
Scope of study
The scope of this research is to compare the service quality of HDFC bank and State Bank of
India (SBI). This research is basedon primary data and secondary data. This study has only
focused on the dimensions of servicequality i.e. RATER. It aims to understand the skill of the
30

company in the area of service quality that are performing well and shows those areas which
require improvement. The study was done taking only one branch of HDFC bank and SBI
into consideration. The survey was restricted to the bank customers in Bijbehara, Anantnag,
Jammu and Kashmir.
METHOD OF DATA COLLECTION
Data source
Primary Data:
The primary data was collected by means of a survey. Questionnaires were prepared
andcustomers of the banks at two branches were approached to fill up the questionnaires.
Thequestionnaire contains 20 questions which reflect on the type and quality of services
provided by the banks to the customers. The response of the customer is recorded on a grade
scale of strongly disagree, disagree, uncertain, agree and strongly agree for each question.
The filled upinformation 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
donethe various sources such as books, a lot of data is also collected from the official
websitesof the banks and the articles from various search engines like Google, yahoo search
andanswers.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
31

questionswho, 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?
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 and SBI.
 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 largestbank of Indian banking industry together
representing over 25 per cent of the market share of Indian banking space. The survey was
conducted in the Bijbehara town of Dist Anantnag at branch of HDFC Bank, with 50
customers as respondents.
Data collection tool
Data was collected through a structured questionnaire. Likert scale technique is used. The
format of a typical five- level Likert item is:
1. Strongly disagree
2. Disagree
32

3. Neither agree nor disagree
4. Agree
5. Strongly agree
33

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 issued in order to evaluate the actual service quality of HDFC bank.
34

Chapter 4
DATA ANALYSIS AND INTERPRETATION
Question: Age (HDFC customers).
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
35

Age (HDFC customers)
18-23
24-29
30-35
≥ 35
Question :Age of SBI customers.
36

37
AGE
CATEGORY
FREQUENCY PERCENTAGE CUMULATIVE
PERCENTAGE
18-23 Years 15 30 30
24-29 Years 17 34 64
30-35 Years 12 24 88
35 Years and
above
6 12 100
TOTAL 50 100

INTERPRETATION:
From the table and graph above it can be seen that20% 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 in case of HDFC. SBI customer data can be
interpreted in the same way.
Question.: Educational qualifications
38

INTERPRETATION
From the table and graph above it can be seen that 26% respondents are Under graduate, 40%
respondents are Graduate, 34% respondents are Post graduate students
Question.1: Did HDFC bank or SBI has modern looking equipment?
Figure 3
40

Figure 4
INTERPRETATION
HDFC bank has modern-looking and hi-tech equipment’s. 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 has modern looking equipments or hi-tech equipments compared to
SBI.
41

.
Question 2: Are physical features of HDFC bank visually appealing compared to SBI?
Figure 5 represents visually appealing features of HDFC compared to SBI
Interpretation: From the above graph it is evident that HDFC bank has visually appealing
physical features than SBI.
Question.3: Are the bank's reception desk employees neat appearing?
42

Figure 6
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 than SBI.
43

Ques.4: When the bank promises to do something by a certain time, it does so.
SCALE FREQUENCY PERCENTAGE CUMULATIVE
PERCENTAGE
STRONGLY
DISAGREE
2 4 4
DISAGREE 26 52 56
UNCERTAIN 5 10 66
AGREE 14 28 94
STRONGLY
AGREE
3 6 100
TOTAL 50 100
Table shows percentage of customers of HDFC bank strongly agreeing. Disagreeing,
uncertain, agreeing and strong agreeing that banks fulfills its promise
SCALE FREQUENCY PERCENTAGE CUMULATIVE
PERCENTAGE
44

STRONGLY
DISAGREE
4 8 8
DISAGREE 24 48 56
UNCERTAIN 5 6 62
AGREE 15 30 92
STRONGLY
AGREE
4 8 100
TOTAL 50 100
Table SBI
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 .Here respondents
have shown dissatisfaction about SBI.
Question 5: When you have a problem, the bank shows a sincere interest in solving it.
45

Figure 7
INTERPRETATION
After analyzing the above graph we 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 than SBI.
46

Ques.6: The bank insists on error free records.
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.SBI is lagging
behind.
47

Ques. 07: Employees in the bank give you prompt service.
Figure 8
Figure shows percentage of prompt services of HDFC Bank
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.
48

Question 8.The loan disbursals and issuance of ATM cards is very fast.
Figure 9
49

Ques.09: Employees in the bank are always willing to help you:
Figure 10
INTERPRETATION
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. Willingness shown by by SBI employs is lower than SBI.
Ques.10The employees of the bank are trustworthy.
50

Figure 11
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.11: You feel safe in your transactions with the bank.
Figure 12
51

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.12: The bank gives you individual attention.
Figure 13
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.
52

Question13: The bank has operating hours convenient to all its customers.
Figure 14
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.14: The employees of the bank understand your specific needs.
53

Figure 15
INTERPRETATION
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. While in case of
SBI, 58% of the respondents disagreed with the statement.,18% of the respondents were
uncertain, 12% of the respondents agreed and remaining agreed strongly.
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 7) - Ability to
perform the promised service dependably and accurately Responsiveness (ques.8 to 10) –
Willingness to help customers and provide prompt services Assurance (ques.10 to 11) –
54

(including competence, courtesy, credibility and security) Knowledge and courtesy of
employees and their ability to inspire trust and confidence Empathy (ques.12 to 14) –
(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.
55

Chapter 5
CONCLUSION & LIMITATIONS
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 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.
56

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.
57

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.
Limitations
The study is only for the HDFC Bank confined to a particular location and a very small
sample of respondents. Hence the findings cannot be treated as representative of the entire
banking industry. The study can also not be generalized for public and private sector banks of
the country. Respondents may give biased answers for the required data. Some of the
respondent’s 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 analyze and come at a right conclusion. In our
study we have included 50 customers of bank because of time limit
58

Chapter 6
BIBLIOGRAPHY
• Kotler Philip, marketing management, (Pearson education, 12th edition)
• Malhotra K. Naresh, marketing research (An applied orientation), Research design,
(Prentice hall of India pvt. 5th edition).
Websites
www.google.com
www.hdfcbank.com
www.hdfcindia.com
www.wikipedia.org
www.marketresearch.com
http://www.hdfcbank.com
http://www.hdfcbank.com/aboutus/general/default.htm
http://www.hdfcbank.com/aboutus/general/Promoter.htm
http://www.hdfcbank.com/aboutus/general/business_focus.htm
http://www.hdfcbank.com/aboutus/general/capital_structure.htm
http://www.hdfcbank.com/common/pdf/corporate/annualreport_05-06.pdf
http://www.blonnet.com/2006/02/09/stories/2006020904010100.htm
http://www.hdfcbank.com/aboutus/cg/annual_reports.htm
http://www.hdfcbank.com/common/pdf/corporate/Accounts.pdf
http://www.hdfcbank.com/personal/accounts/classic_sal_acc.htm
www.bankofscotland.co.uk/business/as/creditcards/ - 13k
www.bankrate.com/brm/news/cc/19980417a.asp?prodtype=
59

bilal 26.07.15 finalsain

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (20)

Similaire à bilal 26.07.15 finalsain

Similaire à bilal 26.07.15 finalsain (20)

bilal 26.07.15 finalsain