PROJECT PREPORT

ON
“ANALYTICAL STUDY ON PERFORMANCE OF HDFC BANK
WITH SPECIAL REFERENCE TO UTTAR PRADESH”

Submitted in partial fulfillment of the requirements for the award of the

degree of
BACHELOR OF BUSINESS ADMINISTRATION FINANCIAL SERVICES
To

Integral University, Lucknow

UNDER THE GUIDANCE OF: SUBMITTED BY:

MR.SAURABH BAJPAI ABU SAIF
(ASSISTANT PROFESSOR) BBA 6th SEMESTER
Enrollment No.
1700101077

Session
2017-20

Department of Commerce & Business Management

Faculty of Commerce & Management
Integral University, Lucknow

1
 ACKNOWLEDGMENT

It is really a matter of pleasure for me to get an

opportunity to thank all the persons who contributed
directly or indirectly for the successful completion of the
project report, “ANALYTICAL STUDY ON PERFORMANCE OF
HDFC BANK WITH SPECIAL REFERENCE TO UTTAR PRADESH”
I wish to express my gratitude to the branch manager
Mr. RAJIV KUMAR, of HDFC BANK, for giving mean
opportunity to be a part of their esteem organization and
enhance my knowledge by granting permission to do a
Project Report. They provided me with their assistance
and support whenever needed, which has been
instrumental in completion of this project. I am thankful
to them, for their support and encouragement
throughout the tenure of the project. Also I am thankful
to my faculty guide MR. SAURABH BAJPAI from
INURTURE, INTEGRAL UNIVERSITY, LUCKNOW,
for being a source of support during this research
period. Last but not the least I am grateful to all the staff
members of HDFC Bank for their kind cooperation and
help during the course of my project.

2
 ABU SAIF
BBA (FS)
[email protected]
c.in
CERTIFICATE BY GUIDE

This is to certify that the project entitled, ANALYTICAL STUDY

ON PERFORMANCE OF HDFC BANK WITH SPECIAL
REFERENCE TO UTTAR PRADESH submitted by ABU SAIF
in partial fulfillment of the requirements for the award of
BACHELOR OF BUSINESS ADMINISTRATION
FINANCIAL SERVICES at the INTEGRAL UNIVERSITY
LUCKNOW is an authentic work carried out by him under my
supervision and guidance.

Date:

MR. SAURABH BAJPAI

INTEGRAL UNIVERSITY LUCKNOW

3
 ABU SAIF
BBA (FS)
[email protected]
c.in

DECLARATION

I hereby declare that the Project report titled

ANALYTICAL STUDY ON PERFORMANCE OF
HDFC BANK WITH SPECIAL REFERENCE TO
UTTAR PRADESH is my original work and has not been
published or submitted for any degree, diploma or other
similar titles elsewhere. This has been undertaken for the
purpose of partial fulfilment of BACHELOR OF
BUSINESS ADMINISTRATION FINANCIAL
SERVICES f at INTEGRAL UNIVERSITY
LUCKNOW.

4
 ABU SAIF
BBA (FS)
[email protected]
c.in

INDEX
CONTENTS PAGE
NO.

5
1. INTRODUCTION
2. COMPANY PROFILE
3. SERVICE QUALITY IN BANKS
4. RESEARCH OBJECTIVE
5. RESEARCH METHODOLOGY
6. DATA ANALYSIS
7. FINDINGS OF THE REPORT
8. CONCLUSION
9. RECOMMENDATIONS
10. BIBLIOGRAPHY
11. ANNEXURE: QUESTIONNAIRE

INTRODUCTION OF BANKING
Service with a smile:

Today’s finicky banking customers will settle for nothing less. The
customer has come to realize somewhat belatedly that he is the king.

6
The customer’s choice of one entity over another as his principal
bank is determined by considerations of service quality rather than
any other factor. He wants competitive loan rates but at the same
time also wants his loan or credit card application processed in
double quick time. He insists that he be promptly informed of
changes in deposit rates and service charges and he bristles with
„customary rage‟ if his bank is slow to redress any grievance he
may have. He cherishes the convenience of impersonal net banking
but during his occasional visits to the branch he also wants the
comfort of personalized human interactions and facilities that make
his banking experience pleasurable. In short he wants financial
house that will more than just clear his cheque and updates his
passbook: he wants a bank that cares and provides great services.

So does HDFC bank meet these heightened expectations? What are

the customers‟ perceptions of service quality of the banks? Which
dimension of service quality of HDFC bank is performing well? To
find out answers to these questions I undertook a survey of 2
branches of HDFC bank.

A lot of surveys have been done in the past to understand the aspect
of customer satisfaction and to find out the customer friendly banks.
My research is conducted to find out “SERVICE QUALITY OF
HDFC BANK”.

7
 COMPANY
PROFILE

HDFC Bank was incorporated in August 1994. As of

September 30, 2019, the Bank had a nationwide distribution
network 5,314 branches and 13,514 ATM's in 2,768
cities/towns. 
8
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 liberalisation of
the Indian Banking Industry in 1994. The bank was
incorporated in August 1994 in the name of 'HDFC Bank
Limited', with its registered office in Mumbai, India. HDFC
Bank commenced operations as a Scheduled Commercial
Bank in January 1995.

Promoter
HDFC is India's premier housing finance company and enjoys
an impeccable track record in India as well as in
international markets. Since its inception in 1977, the
Corporation has maintained a consistent and healthy growth
in its operations to remain 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 unique consumer
franchise, HDFC was ideally positioned to promote a bank in
the Indian environment.

Business Focus

HDFC Bank’s mission is to be a World Class Indian Bank. The

objective is to build sound customer franchises across

9
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 five core values: Operational
Excellence, Customer Focus, Product Leadership, People and
Sustainability.

Capital Structure
As on 30-June-2019, the authorized share capital of the Bank
is Rs. 650 crore. The paid-up share capital of the Bank as on
the said date is Rs. 546,56,24,542 /- which is comprising of
273,28,12,271 equity shares of the face value of Rs 2/-
each. The HDFC Group holds 21.31% of the Bank's equity and
about 18.81% of the equity is held by the ADS / GDR
Depositories (in respect of the bank's American Depository
Shares (ADS) and Global Depository Receipts (GDR) Issues).
31.37% of the equity is held by Foreign Institutional Investors
(FIIs) and the Bank has 6,53,843 shareholders.
The shares are listed on the BSE Limited and The National
Stock Exchange of India Limited. The Bank's American
Depository Shares (ADS) are listed on the New York Stock
Exchange (NYSE) under the symbol 'HDB' and the Bank's
Global Depository Receipts (GDRs) are listed on Luxembourg
Stock Exchange under ISIN No US40415F2002.

10
Amalgamation of Times Bank & CBoP
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, shareholders of CBoP received 1
share of HDFC Bank for every 29 shares of CBoP.
The amalgamation added significant value to HDFC Bank in terms
of increased branch network, geographic reach, and customer base,
and a bigger pool of skilled manpower.
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 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 shareholders of
both banks and the Reserve Bank of India, shareholders 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 of September 30,
2019, the Bank's distribution network was at 5,314 branches
across 2,768 cities. All branches are linked online on a real-
time basis. Customers across India are also serviced through
multiple delivery channels such as Phone Banking, Net

11
Banking, Mobile Banking, and SMS based banking. The Bank's
expansion plans take into account the need to have a
presence in all major industrial and commercial centers,
where its corporate customers are located, as well as the
need to build a strong retail customer base for both deposits
and loan products. Being a clearing / settlement bank to
various leading stock exchanges, the Bank has branches in
centres where the NSE / BSE have a strong and active
member base. The Bank also has a network of 13,514 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
HDFC Bank's Board of Directors comprises eminent
individuals with a wealth of experience in public policy,
administration, industry and commercial banking. Senior
executives representing HDFC Ltd. are also on the Board. 
Various businesses and functions in the Bank are headed by
senior executives with work experience in India and abroad.
They report to the Managing Director. The Bank is focussed
on recruiting and retaining the best talent in the industry as
it believes that its people are a competitive strength.

Technology
HDFC Bank operates in a highly automated environment in
terms of information technology and communication
12
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. In terms of
core banking software, the Corporate Banking business is
supported by Flexcube, while the Retail Banking business by
Finware, both from i-flex Solutions Ltd. The systems are
open, scaleable and web-enabled.
The Bank has prioritised its engagement in technology and
the internet as one of its key goals and has already made
significant progress in web-enabling its core businesses. In
each of its businesses, the Bank has succeeded in leveraging
its market position, expertise and technology to create a
competitive advantage and build market share.

Businesses
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.
Wholesale 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
13
wide range of commercial and transactional banking
services, including working capital finance, trade services,
transactional services, cash management, etc. The bank is
also a leading provider of structured solutions, which
combine cash management services with vendor and
distributor finance for facilitating superior supply chain
management for its corporate customers. Based on its
superior product delivery / service levels and strong
customer orientation, the Bank has made significant inroads
into the banking consortia of a number of leading Indian
corporates including multinationals, companies from the
domestic business houses and prime public sector
companies. It is recognised as a leading provider of cash
management and transactional banking solutions to
corporate customers, mutual funds, stock exchange
members and banks.

Treasury
Within this business, the bank has three main product areas
- Foreign Exchange and Derivatives, Local Currency Money
Market & Debt Securities, and Equities. With the
liberalisation of the financial markets in India, corporates
need more sophisticated risk management information,
advice and product structures. These and fine pricing on
various treasury products are provided through the bank’s
Treasury team. To comply with statutory reserve
requirements, the bank is required to hold 25% of its
deposits in government securities. The Treasury business is
responsible for managing the returns and market risk on this
investment portfolio.

14
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, NetBanking and
Mobile Banking.
The HDFC Bank Preferred program for high net worth
individuals, the HDFC Bank Plus and the Investment Advisory
Services programs have been designed keeping in mind
needs of customers who seek distinct financial solutions,
information and advice on various investment avenues. The
Bank also has a wide array of retail loan products including
Auto Loans, Loans against marketable securities, Personal
Loans and Loans for Two-wheelers. It is also a leading
provider of Depository Participant (DP) services for retail
customers, providing customers the facility to hold their
investments in electronic form.
HDFC Bank was the first bank in India to launch an
International Debit Card in association with VISA (VISA
Electron) and issues the MasterCard Maestro debit card as
well. The Bank launched its credit card business in late
2001. By March 2015, the bank had a total card base (debit
and credit cards) of over 25 million. The Bank is also one of
the leading players in the “merchant acquiring” business
with over 235,000 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.

15
 SERVICE
QUALITY IN
BANKS

In the days of intense competition, the banks are no

different from any other consumer marketing company. It
16
has become essential for the service firms in general and
banks in particular to identify what the customer's
requirements are and how those customer requirements can
be met effectively. In the days where product and price
differences are blurred, superior service by the service
provider is the only differentiator left before the banks to
attract, retain and partner with the customers. Superior
service quality enables a firm to differentiate itself from its
competition, gain a sustainable competitive advantage, and
enhance efficiency .The benefits of service quality include
increased customer satisfaction, improved customer
retention, positive word of mouth, reduced staff turnover,
decreased operating costs, enlarged market share, increased
profitability, and improved financial performance. The
construct of service quality has therefore been a subject of
great interest to service marketing researchers. Service
quality has been defined by various experts in various ways
as: 'Service Quality is the difference between customers'
expectations for service performance prior to the service
encounter and their perceptions of the service received.'
According to Gefan „Service quality is the subjective
comparison that customers make between the qualities of
service that they want to receive and what they actually
get.' Parasuraman says, 'Service quality is determined by the
differences between customer's expectations of services
provider's performance and their evaluation of the services
they received. Service quality is 'the delivery of excellent or
superior service relative to customer expectations‟. Service
quality is recognized as a multidimensional construct. While
the number of dimensions often varies from researcher to
researcher, there is some consensus that service quality
consists of three primary aspects: outcome quality,
interaction quality, and physical service environment
quality. Outcome quality refers to the customer's assessment

17
of the core service which is the prime motivating factor for
obtaining the services (e.g. money received from ATM).
Interaction quality refers to the customer's assessment of
the service delivery process, which is typically rendered via
a physical interface between the service provider, in person,
or via technical equipment, and the customer. It includes,
for instance, the consumer's evaluation of the attitude of
the service providing staff. The physical service environment
quality dimension refers to the consumer's evaluation of any
tangible aspect associated with the facilities or equipment
that the service is provided in/ with. It includes, for
example, the physical conditions of an ATM machine.

The most popular dimensions of service quality--features

five dimensions: tangibles, reliability, responsiveness,
empathy, and assurance. The tangibles dimension
corresponds to the aforementioned physical environment
aspect, the reliability dimension corresponds to the service
outcome aspect, and the remaining three represent aspects
of interaction quality. Both the costs and the revenue of
firms are affected by repeat purchases, positive word-of-
mouth recommendation, and customer feedback. Moreover,
there is strong evidence that service quality has either a
direct influence on the behavioral intentions of customers
and/or an indirect influence on such intentions, mediated
through customer satisfaction. RATER is an instrument that
might be used to define and measure banking service quality
and to create useful quality-assessment tools.

18
 The RATER may finally provide the following benefits
to the HDFC bank:

1. It is the first approach to add and mix the

customers‟ religious beliefs and cultural values with
other quality dimensions.

2. It provides for multi-faced analysis of

customer satisfaction.

3. It links quality with customers‟ satisfaction

and service encounter.

4. It provides information at several levels,

already organized into meaningful groupings.

5. It is a proven approach, which results in usable

answers to meet customers‟ needs.

6. It is empirically grounded, systematic and well

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

19
 DIMENSIONS OF
SERVICE QUALITY

20
DIMENSIONS OF SERVICE QUALITY

TANGIBILITY: This dimension deal with modern looking

equipments and visual appealing part of banks.

RELIABILITY: This dimension has a direct positive effect on

perceived service quality and customer satisfaction in
banking institutions. Banks must provide error free service
and secure online transactions to make customers feel
comfortable.

RESPONSIVENESS: Customers expect that the banks must

respond their inquiry promptly. Responsiveness describes
how often a bank voluntarily provides services that are
important to its customers. Researchers examining the
responsiveness of banking services have highlighted the
importance of perceived service quality and customer
satisfaction.

ASSURANCE: Customer expects that the bank must be

secured and the behavior of the employees must be
encouraging.

EMPATHY: individual attention, customized service and

convenient banking hours are very much important in today’s
service.

In order to achieve better understanding of service quality

in banking sector, the proposed five service quality
21
dimensions are conceptualized to illustrate the overall
service quality of the banking in relation to customers‟ and
providers perspective.

Banking was in the sector featuring medium goods and

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

In the case of services, because customers are often either

direct observers of the production process or active
participants, how the process is performed also has a strong
influence on the overall impression of the quality of service.
A well-performed service encounter may even overcome the
negative impression caused by poor technical quality as well
as generate positive word-of-mouth, particularly if
customers can see that employees have worked very hard to
satisfy them in the face of problems outside their control.
Employees are part of the process, which connects with the
customer at the point of sale, and hence employees remain
the key to success at these service encounters or “moments
of truth”. It is these encounters with customers during a
service that are the most important determinants of overall
customer satisfaction, and a customer’s experience with the
service will be defined by the brief experience with the
firms personnel and the firm’s systems. The rudeness of the
banks 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.

22
Another important service quality factor, competence, is
defined by whether the bank performs the service right the
first time, whether the employees of the bank tell
customers exactly when services will be performed, whether
the bank lives up to its promises, whether customers feel
safe in their transactions with the bank and whether the
employees show a sincere interest in solving the customers‟
problems. In short, this dimension is related to the banks‟
ability to perform the promised service accurately and
dependably. Performing the service dependably and
accurately is the heart of service marketing excellence.
When a company performs a service carelessly, when it
makes avoidable mistakes, and when it fails to deliver on
promises made to attract customers, it shakes customers‟
confidence in its capabilities and undermines its chances of
earning a reputation for service excellence.

It is very important to do the service right the first time. In

case a service problem does crop up, by resolving the
problem to the customer’s satisfaction, the company can
significantly improve customer retention.

However, companies fare best when they prevent service

problems altogether and fare worst when service problems
occur and the company either ignores them or does not
resolve them to the customer’s satisfaction.

Performing the service accurately is perhaps the most

important factor in service quality excellence. The cost of
performing the service inaccurately includes not only the
cost of redoing the service but also the cost associated with
negative word-of-mouth generated by displeased customers.

23
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.

24
RESEARCH
OBJECTIVE

The objective of the study is as follows:

25
 To examine the essential dimensions of
service quality i.e. RATER- Reliability,
assurance, tangibles, empathy and
responsiveness of HDFC bank and its effect
on customer’s satisfaction.

 To find out the level of perception of the

customers from the service quality offered
by the banks.

 To know which service quality dimension of

the bank is performing well.

 To identify which dimension of service

quality needs improvement so that the
quality of service of HDFC banks is
enhanced.

26
IMPORTANCE AND SCOPE OF THE STUDY

The study would try to throw some insights into the

existing services provided by the banks, perceptions
and the actual service quality of the bank. The results
of the study would be able to recognize the lacunae
in the system and thus provide key areas where
improvement is required for better performance and
success ratio. In the days of intense competition,
superior service is the only differentiator left before
the banks to attract, retain and partner with the
customers. Superior service quality enables a firm to
differentiate itself from its competition, gain a
sustainable competitive advantage, and enhance
efficiency.

SCOPE OF STUDY

The scope of this research is to identify the service

quality of HDFC bank. This research is based on
primary data and secondary data. This study only
focuses on the dimensions of service quality i.e.
RATER. It aims to understand the skill of the company
in the area of service quality that are performing well
and shows those areas which require improvement.
The study was done taking two branches of HDFC
bank into consideration. The survey was restricted to
the bank customers in Delhi only.
27
RESEARCH
METHODOL
OGY

28
DATA SOURCE
Primary Data:

The primary data was collected by means of a survey.

Questionnaires were prepared and customers of the
banks at two branches were approached to fill up the
questionnaires. The questionnaire contains 20
questions which reflect on the type and quality of
services provided by the banks to the customers. The
response of the customer and the is recorded on a
grade scale of strongly disagree, disagree, uncertain,
agree and strongly agree for each question. The filled
up information was later analyzed to obtain the
required interpretation and the findings.

Secondary Data:

In order to have a proper understanding of the service

quality of bank a depth study was done from the
various sources such as books, a lot of data is also
collected from the official websites of the banks and
the articles from various search engines like Google,
yahoo search and answers.com.

29
RESEARCH DESIGN

The research design is exploratory till

identification of service quality parameters.
Later it becomes descriptive when it comes to
evaluating customer perception of service
quality of the banks.
Descriptive research, also known as statistical
research, describes data and characteristics
about the population or phenomenon being
studied. Descriptive research answers the
questions who, what, where, when and how.
Although the data description is factual,
accurate and systematic, the research cannot
describe what caused a situation. Thus,
descriptive research cannot be used to create a
causal relationship, where one variable affects
another. In other words, descriptive research
can be said to have a low requirement for
internal validity.

30
RESEARCH SAMPLE

SAMPLING PLAN:

Since it is not possible to study whole universe, it

becomes necessary to take sample from the universe
to know about its characteristics.

Sampling Units: Customers of HDFC

bank.

Sample Technique: Random Sampling.

Research Instrument: Structured

Questionnaire.
Contact Method: Personal Interview.

31
SAMPLE SIZE:
The work is a case of HDFC Bank, one of the
largest bank of Indian banking industry together
representing over 25 per cent of the market
share of Indian banking space. The survey was
conducted in the city of Delhi with two branches
of HDFC Bank, with 50 customers as respondent.

DATA COLLECTION TOOL

1. Strongly disagree

2. Disagree

3. Neither agree nor

disagree

4. Agree

5. Strongly agree
32
Likert scaling is a bipolar scaling method,
measuring either positive or negative response to
a statement. The questionnaire consists of two
parts. The first part consists of three questions
concerning the demographic information of the
respondent such as the name, age, educational
qualifications and income. The second part
consisting of 18 questions exploring the
respondent’s perception about the service quality
of HDFC. For evaluation of service quality of
HDFC bank service quality dimension of
reliability, assurance, tangibility, empathy and
responsiveness is used in order to evaluate the
actual service quality of HDFC bank.

LIMITATIONS OF THE STRATEGY

 The study is only for the HDFC Bank

confined to a particular location and a
very small sample of respondents.
Hence the findings cannot be treated as
representative of the entire banking
industry.

33
 The study can also not be generalized
for public and private sector banks of
the country.

 Respondents may give biased answers

for the required data. Some of the
respondents did not like to respond.

 Respondents tried to escape some

statements by simply answering “neither
agree nor disagree” to most of the
statements. This was one of the most
important limitation faced, as it was
difficult to analyse and come at a right
conclusion.

 In our study we have included 50

customers of bank because of time
limit.

34
 DATA
ANALYSIS

35
 Ques. Age

AGE CUMULATIVE
CATEGORY FREQUENCY PERCENTAG PERCENTAGE
E

10 20 20
18-23 Years

24-29 Years 17 34 54

30-35 Years 15 30 84

35 Years and 08 16 100

above
50 100
TOTAL

36
 Sales
18-23 YEARS 24-29 YEARS 30-35 YEARS 35 YEARS AND ABOVE

16% 20%

30%
34%

INTERPRETATION

From the table and graph above it can be seen

that

 20% respondent’s age are 18 to 23 years.

 34% respondent’s age are 24 to 29 years.

 30% respondent’s age are 30 to 35 years.

 16% respondent’s age are 35 to above years.

37
 Ques. Educational qualifications
FREQUENC
CATEGORY Y PERCENTAG CUMULATIVE
E PERCENTAGE
UNDER 13 26 26
GRADUATE
20 40 66
GRADUATE
POST 17 34 100
GRADUATE
50 100
TOTAL

Sales
UNDER GRADUATE GRADUATE POST GRADUATE

26%
34%

40%

38
INTERPRETATION

From the table above it can be seen

that.

 26% respondents are Under

Graduate.

 40% respondents are Graduate.

 34% respondents are Post

graduate.

39
TANGIBILITY DIMENSION OF SERVICE
QUALITY (Questions1 to 4):

Physical facilities, equipments and appearance

of personnel
Ques.1 HDFC bank has modern looking
equipment.

CUMULATIVE
SCALE FREQUENCY PERCENTAGE PERCENTAGE

STRONGLY 5 10 10
DISAGREE

DISAGREE 25 50 60

UNCERTAIN 16 32 92

AGREE 4 8 100

TOTAL 50 100

40
 Sales
STRONGLY DISAGREE DISAGREE UNCERTAIN AGREE

8% 10%

32%

50%

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

41
 Ques.2 The bank's physical features are visually
appealing.
CUMULATIVE
SCALE FREQUENCY PERCENTAGE PERCENTAGE

DISAGREE 4 8 8

UNCERTAIN 29 58 66

AGREE 17 34 100

TOTAL 50 100

42
 Sales
DISAGREE UNCERTAIN AGREE

8%
34%

58%

INTERPRETATION
HDFC bank’s physical facilities are visually appealing.
From this statement I found that 17 persons agreed. 29
persons were uncertain and 4 persons disagreed. This means
58% people were uncertain about this statement. Out of the
total respondents only 4% disagreed and no one strongly
agreed or disagreed with the statement. 17% people agreed
that HDFC bank’s physical facilities are visually appealing.

Ques.3 The bank's reception desk employees

are neat appearing.

CUMULATIVE
SCALE FREQUENCY PERCENTAGE PERCENTAGE
DISAGREE 5 10 10

43
UNCERTAIN 21 42 52

AGREE 18 36 88
STRONGLY 6 12 100
AGREE
TOTAL 50 100

Sales
DISAGREE UNCERTAIN AGREE STRONGLY AGREE

10%
12%

36% 42%

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.

44
Ques.4 Materials associated with the service (such as
pamphlets or statements) are visually appealing at
the bank.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

DISAGREE 7 14 14

UNCERTAIN 22 44 58

AGREE 18 36 94

STRONGLY 3 6 100
AGREE
TOTAL 50 100

Sales
DISAGREE UNCERTAIN AGREE STRONGLY AGREE

6%
14%

36%

44%

45
INTERPRETATION
Materials associated with the service are visually
appealing at HDFC bank. Here 36% respondents
agreed with this statement and 6% strongly agreed
with this statement. 44% were neutral that is most
and 14% disagreed. There was no respondent who
strongly disagreed. Hence, in general it can be
concluded that materials associated with the services
such as pamphlets or statements are visually
appealing.

46
RELIABILITY DIMENSION OF SERVICE QUALITY
(Questions 5 to 8):
Ability to perform the promised service dependably and
accurately
Ques.5 When the bank promises to do something by a
certain time, it does so.

SACLE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

STRONGLY 2 4 4
DISAGREE
DISAGREE 26 52 56

UNCERTAIN 5 10 66

AGREE 14 28 94

STRONGLY 3 6 100
AGREE
TOTAL 50 100

47
 Sales
STRONGLY DISAGREE DISAGREE UNCERTAIN
AGREE STRONGLY AGREE
6% 4%

28%

52%
10%

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.

48
Ques. 6 When you have a problem, the bank shows
a sincere interest in solving it.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

DISAGREE 3 6 6

UNCERTAIN 14 28 34

AGREE 26 52 86

STRONGLY 7 14 100
AGREE
TOTAL 50 100

Sales
DISAGREE UNCERTAIN AGREE STRONGLY AGREE

6%
14%
28%

52%

49
INTERPRETATION
When you have a problem, HDFC bank shows sincere interest in
solving it. After analyzing this statement I found that most of the
respondents agreed i.e. 52% respondents agreed. Also I found that
28% were neutral with this statement and 6% were committed with
disagree. There was no one who strongly disagreed. Hence HDFC
bank can be said to be reliable.

Ques.7 The bank performs the service right the first

time.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

STRONGLY 2 4 4
DISAGREE
DISAGREE 8 16 20
UNCERTAIN 17 34 54
AGREE 17 34 88
STRONGLY 6 12 100
AGREE
TOTAL 50 100

50
 Sales
STRONGLY DISAGREE DISAGREE UNCERTAIN
AGREE STRONGLY AGREE
12%
4% 16%

34%

34%

INTERPRETATION
Total sample size was 50. Here analysis shows that among
the total respondents 17 people agreed with this statement.
They think that HDFC bank performs the services right the
first time. 6 people strongly agreed with this statement. Also
17 people were neutral and the rest of the respondents
disagreed and strongly disagreed.

51
Ques.8 The bank insists on error free records.
SCALE FREQUENCY PERCENTAGE CUMULATIVE
PERCENTAGE
DISAGREE 5 10 10
UNCERTAIN 10 20 30
AGREE 23 46 76
STRONGLY 12 24 100
AGREE
TOTAL 50 100

Sales
DISAGREE UNCERTAIN AGREE STRONGLY AGREE

24% 10%
20%

46%

INTERPRETATION

52
Bank insists on error free records. HDFC bank has proved from my
analysis that it surely insist on error free records as 46% respondents
agreed with this statement and 24% strongly agreed. Only 10%
respondents disagreed and no one strongly disagreed.

RESPONSIVENESS DIMENSION OF SERVICE QUALITY

(Question 9 to 12):
Willingness to help customers and provide prompt services

Ques. 9 Employees in the bank tell you exactly when the

services will be performed.
SCALE FREQUENCY PERCENTAGE CUMULATIVE
PERCENTAGE
STRONGLY 6 12 12
DISAGREE
DISAGREE 8 16 28
UNCERTAIN 13 26 54
AGREE 18 36 90
STRONGLY 5 10 100
AGREE
TOTAL 50 100

53
 Sales
STRONGLY DISAGREE DISAGREE UNCERTAIN AGREE STRONGLY AGREE

10% 12%
16%

36%

26%

INTERPRETATION
Employees in the bank tell you exactly when the services
will be performed. Majority of the respondents agreed with
this statement. 26% respondents were uncertain. At the same
time 16% disagreed and 12% Strongly disagreed with this
statement.

Ques. 10 Employees in the bank give you prompt

service.

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

Sales
DISAGREE UNCERTAIN AGREE STRONGLY AGREE

4% 10%

32%

54%

INTERPRETATION
55
Most of the respondents agreed with this statement.
According to my analysis, employees in HDFC Bank give
prompt service. Among the total respondents agreed
respondents were 27 and strongly agreed were 2. 16 people
were neutral and 5 disagreed. There was no respondent who
strongly disagreed with this statement.

Ques.11 Employees in the bank are always willing to

help you.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

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

56
 Sales
UNCERTAIN AGREE STRONGLY AGREE

18% 24%

58%

INTERPRETATION
Employees in HDFC bank are willing to help you. With this
statement no one disagreed or strongly disagreed. Strongly
agreed were 9 people i.e. 18% respondents strongly agreed,
29 people agreed i.e. 58% respondents agreed and 24%
respondents were neutral.

57
Ques. 12 Employees in the bank are never too busy
to respond to your request.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

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

Sales
DISAGREE UNCERATIN AGREE STRONGLY AGREE
2% 22%
22%

54%

58
INTERPRETATION
Employees in HDFC Bank ltd are never too busy to respond to your
request. After analyzing this statement I found that most of the
respondents agreed with this statement. Among the total
respondents 22% strongly agreed and 54% agreed. 11 respondents
were neutral and 1 respondent disagreed. No one strongly disagreed.

EMPATHY DIMENSION OF SERVICE QUALITY

(Question13 to 16):
Caring and individualized attention that firm provides
to its customers.
Ques.13 The bank gives you individual attention.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE
DISAGREE 26 52 52
UNCERTAI 12 24 76
N
AGREE 10 20 96
STRONGLY 2 4 100
AGREE
TOTAL 50 100

59
 Sales
DISAGREE UNCERTAIN AGREE STRONGLY AGREE

4%
20%

52%

24%

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.

60
Ques.14 The bank has operating hours convenient to
all its customers.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE
DISAGREE 2 4 4
UNCERTAI 14 28 32
N
AGREE 27 54 86
STRONGLY 7 14 100
AGREE
TOTAL 50 100

Sales
DISAGREE UNCERTAIN AGREE STRONGLY AGREE
14%
4%
28%

54%

61
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.15 The bank has your interests best at heart.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE
STRONGLY 3 6 6
DISAGREE
DISAGREE 5 10 16
UNCERTAIN 10 20 36
AGREE 25 50 86
STRONGLY 7 14 100
AGREE
TOTAL 50 100

62
 Sales
STRONGLY DISAGREE DISAGREE UNCSERATIN
AGREE STRONGLY AGREE
10%
14% 6%

20%

50%

INTERPRETATION
HDFC bank has your best interests at heart. Here analysis
shows that 25 respondents agreed and 7 respondents
strongly agreed with this statement. 20% were neutral and
the rest disagreed and strongly disagreed.

63
Ques.16 The employees of the bank understand your
specific needs.

SACLE FREQUENC PERCENTAG CUMULATIVE

Y E PERCENTAG
E
DISAGREE 5 10 10
UNCERTAI 21 42 52
N
AGREE 20 40 92
STRONGLY 4 8 100
AGREE
TOTAL 50 100

Sales
DIAGREE NCERTAIN AGREE STRONGLY AGREE

8% 10%

40%
42%

64
INTERPREATION
Employees of HDFC bank understand specific needs. With
this statement most of the respondents were neutral. Among
the total respondents 20 respondents agreed and 4
respondents strongly agreed. 5 respondents disagreed with
this statement.

MEASURING SERVICE QUALITY

DIMENSIONS

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

Unlike product where there are specific specifications such as
length, depth, width, weight, colour etc. a service can have
numerous intangible or qualitative specifications. Parasuraman,
Zeithaml, and Berry (1985) provide a list of determinants of service
quality: access, communication, competence, courtesy, credibility,
reliability, responsiveness, security, understanding, and tangibles. A
total of five consolidated dimensions of service quality are:
Tangibles (ques.1 to 4) - Physical facilities, equipments and
appearance of personnel Reliability (ques.5 to 8) - Ability to
perform the promised service dependably and accurately
Responsiveness (ques.9 to 12) – Willingness to help customers and
provide prompt services Assurance (ques.13 to 16) – (including
competence, courtesy, credibility and security) Knowledge and
courtesy of employees and their ability to inspire trust and
confidence Empathy (ques.17 to 20) – (including access,
communication and understanding the customer) Caring and
individualized attention that firm provides to its customer. In order
to calculate which dimension of service quality is performing well, a
65
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.

66
The scores for each dimension are summed up
and a final score is obtained:

SERVICE QUALITY DIMENSION Points

1. TANGIBILITY (1 TO 4) 11

2. RELIABILITY (5 TO 8) 13.5

3. RESPONSIVENESS (9 TO 12) 16

4. ASSURANCE (13 TO 16) 14

5. EMPATHY (17 TO 20) 13

67
FINDINGS
OF THE
REPORT

68
 The Reliability dimension of service quality is better as
compared to empathy and tangibility. Still the score is low.
For most services, customer‟ s perceptions of whether the
service has been performed correctly, and not provider-
established criteria, are the major determinants of reliability.
Customers of the bank hesitate to rely on the bank. Whenever
they have a problem, the bank shows sincere interest in
solving it but the services are not performed by a certain time
as promised. The employees should take this problem
seriously and take steps to remove this.

 As score for Assurance is at second place after responsiveness,

so the customers of HDFC bank are very confident and feel
safe while transacting with the bank. Moreover the employees
of the bank have proved to be trustworthy. Employees are also
educated enough to answer all the questions.

 The score of Tangibility dimension of service quality of

HDFC bank is the lowest. The service quality factor tangible
is defined by whether the physical facilities and materials
associated with the service are visually appealing at the bank.
These are all factors that customers notice before or upon
entering the bank. Customer expectations regarding visual
appealing of HDFC is very high. From my study I found that
Physical facilities and modern looking equipment are not
sufficient in HDFC bank. Respondents were uncertain about
the neat appearance of the reception desk employees. So they
should work on that and try to fulfill the gap.

 According to my findings, the score of Empathy is not

satisfactory but not unsatisfactory also. HDFC bank is unable
to give individual attention to its customers and is unable to
understand specific needs of its customers. But still bank has
taken steps to satisfy its customers by keeping operating hours

69
 convenient to its customers and keeping their interest best at
heart.

 In HDFC bank, the score of Responsiveness is highest so they

are focusing on prompt service, employees are willing to help
the customers and say the exact time when the services will be
performed. Employees at bank give their customers first
preference and are always ready to help them. Overall HDFC
bank‟ s responsiveness dimension of service quality is the
highest.

 According to the customer perception, HDFC bank is highly

responsive. Customers are assured while transacting with the
bank. The reliability dimension is lower than the first to
dimension. They feel that the bank is unable to give them
individual attention and its equipments are not modern and
sufficient for the bank.
 There is not much gap between all the dimensions, this shows
that HDFC BANK is a better service provider in all the
dimensions i.e. reliability, assurance, tangibility,
responsiveness and empathy. As a result of which, the
customers are satisfied with the service offered by HDFC
bank.

70
CONCLUSI
ON

71
Based on the study conducted it can be concluded that
responsiveness, assurance and reliability are the critical
dimensions of service quality of HDFC bank and they are
directly related to overall service quality. The factors that
may delight customers tend to be concerned more with the
intangible nature of the service, commitment, attentiveness,
friendliness, care, and courtesy.

The employees give prompt services, always are ready to

answer the questions and are trustworthy. The main sources
of dissatisfaction appear to be cleanliness, up to date
technology modern equipments, and neatly dressed up
employees. The Tangibility dimension of service quality of
HDFC bank is highly disappointing and serious steps are
needed to be taken to enhance this dimension. Customers of
the bank are dissatisfied with the empathy dimension. To
satisfy these customers, the management can take some
attempts, noted earlier as recommendations.

The study brings about the areas which require urgent

attention of the employees, the management, and the policy
makers of the industry. These are areas in which customers
are hugely dissatisfied with the services of the banks against
their expectation. This high degree of dissatisfaction
resulting from the services received clearly questions the
design of services or subsequent response of the bank
employees. These limitations are too serious to be avoided
as these question the front-line people dealing with the
customers and the approach of the management in taking
customers seriously.

72
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.

73
RECOMME
NDATIONS

74
 Reliability is an obvious place to start. Customers of
the bank want to know their resources are safe and
within trustworthy institutions. A way to ensure this
peace of mind would be to take steps to ensure bank
employees are well trained, so each bank associate is
able to offer complete and comprehensive information
at all times. Consistent policies combined with a
knowledgeable staff will foster a high degree of
institutional cohesion and reliability.
 Responsiveness, again when associated with a well-
trained staff and timely answers to service-related
questions, would make significant inroads into causing
HDFC bank be regarded as responsive. Staff should be
encouraged to present relevant options to banking
customers in a manner that does not resemble
salesmanship so much as a desire to serve.

 Intangibles please customers just as much as tangibles

in the banking industry. People tend to visit the same
branch of a bank over and over again. Usually, this is a
location close to their home or their workplace. It is
natural that customers become comfortable and
habituated to these branch banks, for the same reason
they develop familiarity with a neighborhood
supermarket or convenience store. It makes sense that
bank employees would be encouraged to learn to
recognize these regular customers, learn their names,
and begin to identify their basic service requirements.

75
 Learning to understand customers‟ needs will allow
bank associates to offer enhanced services, perhaps
lowering customers‟ banking costs and increasing their
investment potential. This could also open up the
possibility of increased profits for banks, for when
perceived as more service and customer oriented, they
will, in effect, become a useful and pleasant way to
“shop.”

 Keeping the bank with up-to-date technologically are

important factors. Modern equipments, new improved
technology should be replaced with the old ones. If the
staff inside is pleasant and well-informed, in an
aesthetically pleasing environment, then customer
satisfaction will be high.
 The five-dimensional structure could possibly serve as
a meaningful framework for tracking a bank‟ s service
quality performance over time and comparing it against
the performance of competitors. Items on some
dimensions should be expanded if that is necessary for
reliability.
 Thus, the banking industries must continuously
measure and improve these dimensions in order to gain
customers‟ loyalty.

76
BIBLIOGRAPHY
References
Kotler Philip, marketing management, (Pearson
education, 12th edition)
Malhotra K. Naresh, marketing research (An applied
orientation), Research design, (Prentice hall of
India pvt. 5th edition)

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

A.: Service Marketing
Integrated customer Focus across the Firm” (4th
Edition)
M.K. Rampal : Service Marketing

Websites
www.hdfcbank.com
www.hdfcindia.com
www.wikipedia.org
www.marketresearch.com
www.hdfcup.in

77
 ANNEXURE
QUESTIONNAIRE

Respected Sir/Madam
I am student of INTEGRAL
UNIVERSITY,LUCKNOW, conducting a survey
on “ANLYTICAL STUDY ON PERFORMANCE OF
HDFC BANK WITH SPECIAL REFERENCE TO
UTTAR PRADESH”. The following statements
relate to your feelings about the HDFC bank.
Please show the extent to which you believe
HDFC bank has the feature described in the
statement. I request you to the option which in
your opinion are believed to be true.

Name:
Age:
Education Qualifications:

STRONGLY DISAGREE NEITHER AGREE STRONGL

QUESTIONS DIAGREE AGREE NOR

78
 DISAGREE Y AGREE

1 .HDFC bank has modern

looking equipment.

2. The bank's physical

features are visually
appealing

3. The bank's reception desk

employees are neat
appearing.

4. Materials associated with

the service (such as
pamphlets or statements) are
visually appealing at the
bank.
5. When the bank promises to
do something by a certain
time, it does so.

6. When you have a problem,

the bank shows a sincere
interest in solving it.

7. The bank performs the

service right the first time.

8. The bank insists on error

free records.
9. Employees in the bank tell

79
you exactly when the
services will be performed.

10. Employees in the bank

give you prompt service.

11. Employees in the bank are

always willing to help
you

12. Employees in the bank

are never too busy to
respond to your request.

13. The employees of the

bank are trustworthy.

14. The behavior of

employees in the bank
instills confidence in you

15. You feel safe in your

transactions with the
bank.

16. Employees in the bank

have the knowledge to
answer your questions.

17. The bank gives you

individual attention.
18. The bank has operating
80
hours convenient to all its
customers.

19. The bank has your best

interests at heart.

20. The employees of the

bank understand your
specific needs.

THANK
YOU
81