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A report submitted to Panjab University, Chandigarh
In partial fulfillment of the requirement
For the degree of

(Session: 2013-14)



To achieve partial and concrete results, it is necessary that theoretical
knowledge must be supplemented with practical environment.

Keeping this view in mind, I have completed my research work regarding
topic name By doing this research work I have learnt a lot of things
which would be really helpful for me in future. This experience in decision
making and practical application of knowledge has contributed greatly to
my growth.



I _________________, hereby declare that the project entitled
________________ submitted for partial fulfillment for the award of
degree of MASTER OF COMMERCE (M.COM) is entirely original and has not
been submitted earlier by any one for any Degree or Diploma.

Place: Signature


I deem it a great privilege to thank all those people who helped me to
complete this project work. I express my sincere thanks to the
management of the ___________________________and our
respected Head of the Department Prof. __________________for
giving me this opportunity to undertake the project work.
I express my profound thanks to ___________________, HDFC Bank for
giving me valuable advice and guidance and sparing valuable time in
clarifying various points raised by me.


Chapter Title Page Number
1.1 Industry Profile
1.2 Indian Banking System
1.3 What is Consumer Perception?
1.4 Measuring Consumer Perception
1.5 The Need to Measure Consumer Perception

Company Profile :-
3.1 Background
3.2 Business Objectives
3.3 Organizational Goals
3.4 History of HDFC
3.5 Business Focus
3.6 HDFC Bank The Organization
3.7 Products & Services
3.8 Performance of HDFC Bank
3.9 Internet Banking in India

Review of Literature

Research Methodology
4.1 Problem Statement

4.2 Objective of Study
4.3 Need & Importance of the study
4.4 Scope of Study
4.5 Research Design
4.6 Sampling Tool
4.7 Data Collection Method
4.8 Statistical Tool
Data Interpretation
5.1 Factor Analysis

Findings & Conclusion
6.1 Findings from HDFC Customers
6.2 Findings from Non-HDFC Customers
6.3 Suggestions & Recommendations
6.4 Conclusion

References & Bibliography
List of Tables & Graphs
Copy of Questionnaire

The Banking Regulation Act 1949 defines banking as accepting the purpose of lending or
investment, of deposits of money from the public, repayable on demand or otherwise and
withdraw able by cheque, draft, order otherwise. The essential function of a bank is to
provide services related to the storing of value and the extending credit. The evolution of
banking dates back to the earliest writing, and continues in the present where a bank is a
financial institution that provides banking and other financial services. Currently the term
bank is generally understood an institution that holds a banking license. Banking licenses
are granted by financial supervision authorities and provide rights to conduct the most
fundamental banking services such as accepting deposits and making loans. There are
also financial institutions that provide certain banking services without meeting the legal
definition of a bank, a so called non-bank. Banks are a subset of the financial services
industry. The word Bank is derived from the Italian word banco signifying a bench,
which was erected in the market place, where it was customary to exchange money; the
first bench having been established in Italy A.D. 808. The basic functions of banks are to
accept deposits, lend money and act as collecting and paying agents. The Bank of
Barcelona in Spain (1401) was perhaps the first institution that could be called a bank in
this sense. The terms bankrupt and "broke" are similarly derived from banca rotta, which
refers to an out of business bank, having its bench physically broken. Money lenders in
Northern Italy originally did business in open areas, or big open rooms, with each lender
working from his own bench or table. Typically, a bank generates profits from
transaction fees on financial services or the interest spread on resources it holds in trust
for clients while paying them interest on the asset.

The Reserve Bank of India (RBI) is India's central bank. It is the sole authority for
issuing bank notes and the supervisory body for banking operations in India. It supervises
and administers exchange control and banking regulations, and administers the
government's monetary policy. It is also responsible for granting licenses for new bank
branches. Though the banking industry is currently dominated by public sector banks,
numerous private and foreign banks exist. India's government-owned banks dominate the
market. Their performance has been mixed, with a few being consistently profitable.
Several public sector banks are being restructured, and in some the government either
already has or will reduce its ownership.

1.2.1 Private and foreign banks
The RBI has granted operating approval to a few privately owned domestic banks; of
these many commenced banking business. Foreign banks operate more than 150 branches
in India. The entry of foreign banks is based on reciprocity, economic and political
bilateral relations. An inter-departmental committee approves applications for entry and

Customer Perception is an important component of an organizations relationship with
their customers. Customer satisfaction is a mental state which results from the customers
comparison of expectations prior to a purchase with performance perception after a
purchase. Strong customer service helps an organization to reach up to customers
expectations. Customer Perception on Service: Customer Service is the service provided
in support of a companys core products. Customer Service most often includes
answering questions, taking orders, dealing with billing issues, handling complaints, and
perhaps scheduling maintenance or repairs. Customer Service can occur on site, or it can
occur over the phone or via the internet. Many companies operate customer service call
centers, often staffed around the clock. Typically there is no charge for customer service.
Quality customer service is essential to building customer relationships. It should not,
however, be confused with the services provided for sale by a company. Services tend to
be more intangible than manufactured products. There is a growing market for services
and increasing dominance of services in economies worldwide. There are generally two
types of customer expectations. The highest can be termed as desired service: the level of
service the customer hopes to receive. The threshold level of acceptable service which the
customers will accept is adequate service. Yet there is hard evidence that consumers
perceive lower quality of service overall and are less satisfied. Possible reasons may be:
With more companies offering tiered service based on the calculated profitability
of different market segments, many customers are in fact getting less service than
they have in past.
Increasing use by companies of self-service and technology-based service is
perceived as less service because no human interaction or human personalization
is provided.
Technology-based services (Automated Voice Systems, Internet-Based Services,
Technology Kiosks) are hard to implement, and there are many failures and
poorly designed systems in place.
Customer expectations are higher because of the excellent service they receive
from some companies. Thus they expect the same from all and are frequently
Organizations have cut costs to the extent that they are too lean and are too
understaffed to provide quality service.
The intensely competitive job market results in less skilled people working in
frontline service jobs; talented workers soon get promoted or leave for better
Many companies give lip service to customer focus and service quality; but they
fail to provide the training, compensation, and support needed to actually deliver
quality service.
Delivering consistent, high-quality service is not easy, yet many companies
promise it.

1.4 Measuring Customer Perception in the Banking Industry
Banking operations are becoming increasingly customer dictated. The demand for
'banking super malls' offering one-stop integrated financial services is well on the rise.
The ability of banks to offer clients access to several markets for different classes of
financial instruments has become a valuable competitive edge. Convergence in the
industry to cater to the changing demographic expectations is now more than evident.
Banc assurance and other forms of cross selling and strategic alliances will soon alter the
business dynamics of banks and fuel the process of consolidation for increased scope of
business and revenue. The thrust on farm sector, health sector and services offers several
investment linkages. In short, the domestic economy is an increasing pie which offers
extensive economies of scale that only large banks will be in a position to tap. With the
phenomenal increase in the country's population and the increased demand for banking
services; speed, service quality and customer satisfaction are going to be key
differentiators for each bank's future success. Thus it is imperative for banks to get useful
feedback on their actual response time and customer service quality aspects of retail
banking, which in turn will help them take positive steps to maintain a competitive edge.
The working of the customer's mind is a mystery which is difficult to solve and
understanding the nuances of what perception the customer has to attain satisfaction is, a
challenging task. This exercise in the context of the banking industry will give us an
insight into the parameters of customer satisfaction and their measurement. This vital
information will help us to build satisfaction amongst the customers and customer loyalty
in the long run which is an integral part of any business. The customer's requirements
must be translated and quantified into measurable targets. This provides an easy way to
monitor improvements, and deciding upon the attributes that need to be concentrated on
in order to improve customer satisfaction. We can recognize where we need to make
changes to create improvements and determine if these changes, after implemented, have
led to increased customer satisfaction.

1.5 The Need to Measure Customer Perception:
Satisfied customers are central to optimal performance and financial returns. In many
places in the world, business organizations have been elevating the role of the customer
to that of a key stakeholder over the past twenty years. Customers are viewed as a group
whose satisfaction with the enterprise must be incorporated in strategic planning efforts.
Forward-looking companies are finding value in directly measuring and tracking
customer satisfaction as an important strategic success indicator. Evidence is mounting
that placing a high priority on customer satisfaction is critical to improved organizational
performance in a global marketplace.
With better understanding of customers' perceptions, companies can determine the
actions required to meet the customers' needs. They can identify their own strengths and
weaknesses, where they stand in comparison to their competitors, chart out path future
progress and improvement. Customer satisfaction measurement helps to promote an
increased focus on customer outcomes and stimulate improvements in the work practices
and processes used within the company.
When buyers are powerful, the health and strength of the company's relationship with its
customers its most critical economic asset is its best predictor of the future. Assets on
the balance sheet basically assets of production are good predictors only when buyers
are weak. So it is no wonder that the relationship between those assets and future income
is becoming more and more tenuous. As buyers become empowered, sellers have no
choice but to adapt. Focusing on competition has its place, but with buyer power on the
rise, it is more important to pay attention to the customer.

2.1 Background
HDFC was incorporated in 1977 with the primary objective of meeting a social Need
that of promoting home ownership by providing long-term finance to households for their
housing needs. HDFC was promoted with an initial share capital of Rs. 100 million.
2.2 Business Objectives
The primary objective of HDFC is to enhance residential housing stock in the Country
through the provision of housing finance in a systematic and professional Manner, and to
promote home ownership. Another objective is to increase the flow of resources to the
housing sector by integrating the housing finance sector with the overall domestic
financial markets.
2.3 Organizational Goals
HDFCs main goals are to:-
a) Develop close relationships with individual households.
b) Maintain its position as the premier housing finance institution in the country.
c) Transform ideas into viable and creative solutions.
d) Provide consistently high returns to shareholders.
e) To grow through diversification by leveraging off the Existing client.
The Housing Development Finance Corporation Limited (HDFC) was amongst the first
to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a
bank in the private sector, as part of the RBI's liberalization of the Indian Banking
Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank
Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations
As a Scheduled Commercial Bank on 16th January 1995. In the year 1998 HDFC Bank
had tied up with the Ahmadabad Stock Exchange (ASE) to act as its clearing bank.

2.5 Business Focus:-
HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build
sound customer franchises across distinct businesses so as to be the preferred provider of
banking services for target retail and wholesale customer segments, and to achieve
healthy growth in profitability, consistent with the bank's risk appetite. The bank is
committed to maintain the highest level of ethical standards, professional integrity,
corporate governance and regulatory compliance.
Subsidiary and Associate Companies:-
The subsidiaries of HDFC consists of
1. HDFC Bank.
2. HDFC Mutual Fund.
3. HDFC Standard Life Insurance Company.
4. HDFC Realty.
5. HDFC Chubb General Insurance Company Limited.
6. Intel net Global Services Limited.
7. Credit Information Bureau (India) Limited.
8. Other Companies Co Promoted by HDFC
HDFC Trustee Company Ltd.
GRUH Finance Ltd.
HDFC Developers Ltd.
HDFC Venture Capital Ltd.
HDFC Venture Trustee Company Ltd
HDFC Securities Ltd.
HDFC Holding Ltd.
Home Loan Services India Pvt. Ltd.

The Organization:-
The Housing Development Finance Corporation Limited (HDFC) was amongst the first
to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a
bank in the private sector, as part of the RBI's liberalization of the Indian Banking
Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank
Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations
As a Scheduled Commercial Bank on 16th January 1995. In the year 1998 HDFC Bank
had tied up with the Ahmadabad Stock Exchange (ASE) to act as its clearing bank.
2.6.1 Tech-Savvy
HDFC Bank has always prided itself on a highly automated environment, be it in
terms of information technology or communication systems. All the braches of
the bank boast of online connectivity with the other, ensuring speedy funds
transfer for the clients. At the same time, the bank's branch network and
Automated Teller Machines (ATMs) allow multi-branch access to retail clients.
The bank makes use of its up-to-date technology, along with market position and
expertise, to create a competitive advantage and build market share.

2.6.2 Business Segments
The Bank has three primary business segments: banking, wholesale banking
and treasury. The retail banking segment serves retail customers through a
branch network and other delivery channels. This segment raises deposits from
customers and makes loans and provides other services wi th the help of specialist
product groups to such customers. The wholesale banking segment provides
loans, non-fund facilities and transaction services to corporate, public sector
units, government bodies, financial institutions and medium-scale enterprises.
The treasury segment includes net interest earnings on investments portfolio of
the Bank. As of March 31, 2011, the Bank operated1, 805 branches in 779 cities
and 4,256 automated teller machines (ATMs).

2.6.3 Capital Structure:-
The authorized capital of HDFC Bank is Rs.450 crore (Rs.4.5 billion). The paid-up
capital is Rs.311.9 crore (Rs.3.1 billion). The HDFC Group holds 22.1% of the bank's
equity and about 19.4% of the equity is held by the ADS Depository (in respect of the
bank's American Depository Shares (ADS) Issue). Roughly 31.3% of the equity is held
by Foreign Institutional Investors (FIIs) and the bank has about 190,000 shareholders.
The shares are listed on The Stock Exchange, Mumbai and the National Stock Exchange.
2.7 Products and Services HDFC Bank
Product range:
The following is the product range offered at HDFC: While various deposit products
offered by the bank are assigned different names, the deposit products can be categorized
broadly into the following types. Definition of major deposit schemes are as under: -
1. Demand deposits:
"Demand Deposits" means a deposit received by the bank which is withdrawn able on
Savings Account:
"Savings Deposits" means a form of Demand Deposit which is subject to restrictions as
to the number of withdrawals as also the amounts of withdrawals permitted by the bank
during any specified period; HDFC provides with saving bank account with the usual
facilities, and one also gets a free ATM card, interbank banking, bill payment facilities,
phone banking and mobile banking.
2. Term Deposits: "Term Deposit" means a deposit received by the bank for a fixed
period withdraw able only after the expiry of the fixed period and includes deposits such
as Recurring / Double Benefit Deposits.

3. Notice Deposit:
''Notice Deposit'' means Term Deposit for a specific period but which can be withdrawn
on giving at least one complete banking day's notice.
4. Current Account:
"Current Account" means a form of Demand Deposit wherefrom withdrawals are
allowed any number of times depending upon the balance in the account or up to a
particular agreed amount and will also include other deposit accounts which are neither
Savings Deposit nor Term Deposit; The account holder gets a personalized cheque book,
monthly account statements, and Inter-branch banking.
5. Corporate Account:-
These are more commonly known as Salary Accounts. These are account in HDFC bank
with zero balance. These are given to salaried people. These accounts are opened by the
employer for the employees to deposit the salary of the employee directly to the account.
6. HDFC Bank Preferred:-
A preferential Savings Account where in, one is assigned with a dedicated Relationship
Manager, whos youre the one point contact. One also get privileges like fee waivers,
enhanced ATM withdrawal limit, priority locker allotment, free Demat Account and
lower interest rates on loans.
7. Sweep-In Account:-
A Fixed Deposit linked to ones Savings Account. So, even if ones Savings Account
runs a bit short, one can issue a cheque (or use ATM Card).
8. Super Saver Account:-
It gives one an overdraft facility up to 75% of ones fixed deposit. In an emergency, you
can access your funds while your fixed deposit continues to earn high interest.
9. HDFC Bank plus:-
Apart from Regular and Premium Current Accounts HDFC also has HDFC Bank Plus, a
Current Account and then something extra for the HDFC bank customers. One can
transfer up to Rs. 50 lakh every month at no extra charges, between the four metros.
Demat Account:
One can conduct hassle-free transactions on the stock market for ones shares. The shares
held by the customer are protected from damage, loss and theft, by maintaining these
shares in electronic form. This account can be accessed through Internet too.
There are a variety of loan schemes offered like personal loans, new car loans, used car
loans, loan against shares, gold loan, consumer loans, two wheeler loans, and home loans.
2.8 Performance of HDFC Bank
Awards and Achievements:
HDFC Bank began operations in 1995 with a simple mission: to be a "World-class
Indian Bank". They realized that only a single-minded focus on product quality and
service excellence would help them get there. Today, we are proud to say that we are well
on our way towards that goal.
It is extremely gratifying that our efforts towards providing customer convenience have
been appreciated both nationally and internationally.
Strongest Bank in Asia Pacific
Asian Banker
Financial Leadership
Awards 2011
Best Bank
IBA Banking
Technology Awards
Winner -
1) Technology Bank of the Year
2) Best Online Bank
3) Best Customer Initiative
4) Best Use of Business Intelligence
5) Best Risk Management System
Runners Up -
Best Financial Inclusion
IDC FIIA Awards 2011 Excellence in Customer Experience

Outlook Money 2010
Best Bank
Business world Best
Bank Awards 2010
Best Bank (Large)
Teacher's Achievement
Awards 2010 (Business)
Mr. Aditya Puri
The Banker and PWM
2010 Global Private
Banking Awards
Best Private Bank in India
Economic Times
Awards for Corporate
Excellence 2010
Business Leader of the Year - Mr. Aditya Puri
Forbes Asia Fab 50 Companies - 5th year in a row
NDTV Business
Leadership Awards
Best Private Sector Bank
The Banker Magazine World's Top 1000 Banks
MIS Asia IT Excellence
Award 2010
Dun & Bradstreet
Banking Awards 2010

Overall Best Bank
Best Private Sector Bank
Best Private Sector Bank in SME Financing
Institutional Investor
Magazine Poll
HDFC Bank MD, Mr. Aditya Puri among "Asian Captains of Finance 2010"
IDRBT Technology
2009 Awards
Winner - 1) IT Infrastructure 2) Use of IT within the Bank
Runners-up - IT Governance (Large Banks)

3.9 E-banking:-
Internet banking (or E-banking) means any user with a personal
computer and a browser can get connected to his bank -s website to perform any of the
virtual banking functions. In internet banking system the bank has a centralized database
that is web-enabled. All the services that the bank has permitted on the internet are
displayed in menu. Any service can be selected and further interaction is dictated by the
nature of service. Once the branch offices of bank are interconnected through terrestrial
or satellite links, there would be no physical identity for any branch. It would a borderless
entity permitting anytime, anywhere and anyhow banking.
The delivery channels include direct dialup connections, private networks,
public networks, etc. with the popularity of computers, easy access to Internet and World
Wide Web (WWW), Internet is increasingly used by banks as a channel for receiving
instructions and delivering their products and services to their customers. This form of
banking is generally referred to as Internet Banking, although the range of products and
services offered by different banks vary widely both in their content and sophistication.

Meaning of E-Banking
E-bank is the electronic bank that provides the financial service for the individual client
by means of Internet.

For this booklet, e-banking is defined as the automated delivery of new and
traditional banking products and services directly to customers through electronic,
interactive communication channels. E-banking includes the systems that enable financial
institution customers, individuals or businesses, to access accounts, transact business, or
obtain information on financial products and services through a public or private
network, including the Internet. Customers access e-banking services using an intelligent
electronic device, such as a personal computer (PC), personal digital assistant (PDA),
automated teller machine (ATM), kiosk, or Touch Tone telephone. While the risks and
controls are similar for the various e-banking access channels, this booklet focuses
specifically on Internet-based services due to the Internets widely accessible public
network. Accordingly, this booklet begins with a discussion of the two primary types of
Internet websites: informational and transactional.
Convenience- Unlike your corner bank, online banking sites never close; theyre
available 24 hours a day, seven days a week, and theyre only a mouse click away. With
pressures on time and longer travelling periods, more and more people find it tiresome
waiting in queues. People want flexibility, and Internet banking offers just that.
Ubiquity- If youre out of state or even out of the country when a money problem
arises, you can log on instantly to your online bank and take care of business, 24\7.
Transaction speed- Online bank sites generally execute and confirm transactions at or
quicker than ATM processing speeds.
Efficiency-You can access and manage all of your bank accounts, including IRAs,
CDs, even securities, from one secure site.
Effectiveness- Many online banking sites now offer sophisticated tools, including
account aggregation, stock quotes, rate alert and portfolio managing program to help you
manage all of your assets more effectively. Most are also compatible with money
managing programs such as quicken and Microsoft money.
Cheaper alternative: - With increasing competition, it seems to be the cost factor that
is driving banks to offer the facility. The Internet is still a very cheap alternative to
opening a physical branch, and most of the push seems to be coming from the supply
side. The costs of a banking service through the Internet form a fraction of costs through
conventional methods.
From snob value to necessity:- A couple of years ago, there was a belief even among
bankers that customers opening new accounts wanted the online banking facility, just to
"feel good" and very few of them actually used the services. Today, bankers believe that
the trend from `nice to have' is changing to `need to have'. The "snob value" of banking
with an organisation that could offer service on the Internet has given way to a genuine
necessity, he feels. "It all depends on how busy a person is."

Start-up may take time-In order to register for your banks online program, you will
probably have to provide ID and sign a form at a bank branch. If you and your spouse
wish to view and manage their assets together online, one of you may have to sign a
durable power of attorney before the bank will display all of your holdings together.
Learning curves- Banking sites can be difficult to navigate at first. Plan to invest some
time and\or read the tutorials in order to become comfortable in your virtual lobby.
Bank site changes- Even the largest banks periodically upgrade their online programs,
adding new features in unfamiliar places. In some cases, you may have to re-enter
account information.

Indian banks are trying to make your life easier. Not just bill payment, you can make
investments, shop or buy tickets and plan a holiday at your fingertips. In fact, sources
from ICICI Bank tell us, "Our Internet banking base has been growing at an exponential
pace over the last few years. Currently around 78 per cent of the bank's customer base is
registered for Internet banking." To get started, all you need is a computer with a modem
or other dial-up device, a checking account with a bank that offers online service and the
patience to complete about a one-page application- which can usually be done online.
You can avail the following services.
1. Bill payment service: Each bank has tie-ups with various utility companies, service
providers and insurance companies, across the country. It facilitates the payment of
electricity and telephone bills, mobile phone, credit card and insurance premium bills. To
pay bills, a simple one-time registration for each biller is to be completed. Standing
instructions can be set, online to pay recurring bills, automatically. One-time standing
instruction will ensure that bill payments do not get delayed due to lack of time. Most
interestingly, the bank does not charge customers for online bill payment.
2. Fund transfer: Any amount can be transferred from one account to another of the
same or any another bank. Customers can send money anywhere in India. Payees
account number, his bank and the branch is needed to be mentioned after logging in the
account. The transfer will take place in a day or so, whereas in a traditional method, it
takes about three working days. ICICI Bank says that online bill payment service and
fund transfer facility have been their most popular online services.
3. Credit card customers: Credit card users have a lot in store. With Internet banking,
customers can not only pay their credit card bills online but also get a loan on their cards.
Not just this, they can also apply for an additional card, request a credit line increase and
God forbid if you lose your credit card, you can report lost card online.
4. Railway pass: This is something that would interest all the aam janta. Indian Railways
has tied up with ICICI bank and you can now make your railway pass for local trains
online. The pass will be delivered to you at your doorstep. But the facility is limited to
Mumbai, Thane, Nasik, Surat and Pune. The bank would just charge Rs 10 + 12.24
percent of service tax.
5. Investing through Internet banking: Opening a fixed deposit account cannot get
easier than this. An FD can be opened online through funds transfer. Online banking can
also be a great friend for lazy investors. Now investors with interlinked demat account
and bank account can easily trade in the stock market and the amount will be
automatically debited from their respective bank accounts and the shares will be credited
in their demat account. Moreover, some banks even give the facility to purchase mutual
funds directly from the online banking system. So it removes the worry about filling
those big forms for mutual funds, they will now be just a few clicks away. Nowadays,
most leading banks offer both online banking and demat account. However if the
customer have there demat account with independent share brokers, then need to sign a
special form, which will link your two accounts.
6. Recharging your prepaid phone: Now there is no need to rush to the vendor to
recharge the prepaid phone, every time the talk time runs out. Just top-up the prepaid
mobile cards by logging in to Internet banking. By just selecting the operator's name,
entering the mobile number and the amount for recharge, the phone is again back in
action within few minutes.
7. Shopping at your fingertips: Leading banks have tie ups with various shopping
websites. With a range of all kind of products, one can shop online and the payment is
also made conveniently through the account. One can also buy railway and air tickets
through Internet banking.
A large number of financial institutions maintains sites on the World Wide Web. Some
websites are strictly informational, while others also offer customers the ability to
perform financial transactions, such as paying bills or transferring funds between
Wireless banking is a delivery channel that can extend the reach and enhance the
convenience of Internet banking products and services. Wireless banking occurs when
customers access a financial institution's network(s) using cellular phones, pagers, and
personal digital assistants (or similar devices) through telecommunication companies
wireless networks. Wireless banking services in the United States typically supplement a
financial institution's e-banking products and services.
Person-to-Person Payments
Electronic person-to-person payments, also known as e-mail money, permit consumers to
send money to any person or business with an e-mail address. Under this scenario, a
consumer electronically instructs the person-to-person payment service to transfer funds
to another individual. The payment service then sends an e-mail notifying the individual
that the funds are available and informs him or her of the methods available to access the
funds including requesting a check, transferring the funds to an account at an insured
financial institution, or retransmitting the funds to someone else. Person-to-person
payments are typically funded by credit card charges transfer from the consumers
account at a financial institution. Since neither the payee nor the payer in the transaction
has to have an account with the payment service, such services may be offered by an
insured financial institution, but are frequently offered by other businesses as well.
Banking Services through Internet:
1. The Basic Level Service is the banks web sites which disseminate information on
different products and services offered to customers and members of public in
general. It may receive and reply to customers queries through e-mail
2. In the next level are Simple Transactional Web sites which allows customers to
submit their instructions, applications for different services, queries in their account
balances, etc. but do not permit any fund-based transactions on their accounts
3. The third level of Internet banking service are offered by Fully Transactional Web
sites which allow the customers to operate on their accounts for transfer of funds,
payment of different bills, subscribing to other products of the bank and to transact
purchase and sale of securities, etc. The above forms of Internet banking service the
customer or by new banks, who deliver banking service primarily through Internet
or other electronic delivery channels as the value added services. Some of these
banks are known as Virtual banks or Internet only banks and may not have
physical presence in a country despite offering different banking services.

The Indian Scenario: -
Internet banking, both as a medium of delivery of banking services and as a
strategic tool for business development.
At present, the total internet users in the country are estimated at 9 lakh. However,
this is expected to grow exponentially to 90 lakh by 2003. Only about 1 percent of
Internet users did banking online in 1998. This is increased to 16.7 percent in
March 2000.
- (India Research, May 29, 2000, Kotak Securities)
Cost of banking service through the Internet from a fraction of costs through
conventional methods. Rough estimates assume teller cost at Re.1 per transaction,
ATM transaction cost at 45 paise, phone banking at 35 paise, debit cards at 20 paise
and Internet banking at 10 paise per transaction.
Plastic Cards as Media for Payment: -
There are four types of plastic cards being used as media for making
payments. These are:
1. Credit Card
2. Debit Card
3. Smart Card
4. ATM Card

1. Credit Cards: -
The credit card enables the cardholders to: Purchase any item like clothes, jewellery,
railway/air tickets, etc.
Pay bills for dining in a restaurant or boarding and lodging in hotel
Avail of any service like car rental, etc.

2. Debit Cards: -
A debit card is issued on payment of a specified amount by the issuing company like a
telephone company to a customer on cash payment or on debiting his account by a bank.
Thus it is like an electronic purse, which can be read and debited by the required amount.
It may be noted that while through a credit card, the customer first makes a purchase or
avails service and pays later on, but for getting the debit card, a customer has to first pay
the due amount and then make a purchase or avail the service. For this reason, debit card
are not as popular as credit cards.

3. Smart Cards: -
Smart Cards have a built-in microcomputer chip, which can be used for storing and
processing information. For example, a person can have a smart card from a bank with
the specified amount stored electronically on it. As he goes on making transactions with
the help of the card, the balance keeps on reducing electronically. When the specified
amount is utilized by the customer, he can approach the bank to get his card validated for
a further specified amount. Such cards are used for paying small amounts like telephone
calls, petrol bills, etc.

4. ATM Cards: -
The card contains a PIN (Personal Identification Number) which is selected by the
customer or conveyed to the customer and enables him to withdraw cash up to the
transaction limit for the day. He can also deposit cash or cheque.
a. NET BANKING: Net Banking is HDFC Bank's Internet Banking service. Providing
up-to-the-second account information, Net Banking lets you manage your account from
the comfort of your mouse - anytime, anywhere.
b. HDFC Bank Net Banking Secure Access
HDFC Bank has implemented a new security solution for its customers Secure Access
.As your security is our top priority, we have initiated the Secure Access solution to
protect you from fraudsters and hackers - who are looking to find a way to access your
account. Currently following transactions are covered under Secure Access
Transfer from one HDFC Bank account to other HDFC Bank account holders (under
distinct customer ID)
Transfer from HDFC Bank account to any other Bank's account (also known as RTGS
Visa Money Transfer
Third Party Demand Draft through Net Banking
c. Third Party Transfer
Third-Party Transfer is a Net Banking feature for which you will need your unique
Customer ID and IPIN (password). Login to Net Banking to confirm that your ID is
active in our records.
No need to individually log on to internet banking of every account. Just log on to One
View and manage upto FIVE accounts in different banks.
Remember only ONE password.
No charges whatsoever
One View gives you the world class banking security and technology sophistication you'd
expect of HDFC Bank, with features such as:
Robust firewall protection makes it nearly impossible to break through.
All information is transmitted using advanced 128 bit Secure Socket Layer (SSL)
encryption technology.
Automatic time-outs ensure that your account details are not viewed by others.
You can only view your accounts and cannot transact, so your money is absolutely safe.
MOBILE BANKING: Your Mobile is now your bank! Now access your bank account
and conduct a host of banking transactions through your mobile, with our unique Mobile
Banking service. You can check your account level information such as balance details,
mini statement, and cheque status as well as carry out financial transactions such as
Funds Transfer using HDFC Bank Mobile Banking service.
Using our Mobile Banking service, you can avail of a host of features at your finger tips
Perform funds transfers
Get your balance details
Obtain your last 3 transaction details
Request a cheque book
Stop a cheque payment
Enquire cheque status
Request an account statement
Get Fixed Deposit details
Request for I-PIN generation
Request a cheque book
AUTOMATED TELLER MACHINE: With wide spread network of 4,000 ATMs
across India, enjoy the following benefits at your convenience.
24-hour access to Cash - Withdraw up to Rs.10, 000/- per day on your ATM Card and
up to Rs. 15,000 on your Debit Card.
Personalized Cash Withdrawals Save time on your cash withdrawal transactions by
pre-setting your preferred language / account / amount.
View Account Balances & Mini-statements - Get details of the last 9 transactions on
your account with the mini-statement, along with your account balance.
Change ATM PIN - Change your ATM PIN at any given point in time.
Order a Cheque Book / Account Statement
HDFC Bank Credit Card Payment - Make payment of your HDFC Bank Credit Card
dues using the ATM. The primary account of your Debit / ATM card will be debited.
Deposit Cash or Cheques - Deposit Cash or Cheques into your account without
visiting the Branch. Available at Non-Branch HDFC Bank ATMs
Transfer Funds between accounts Transfer money between your accounts. Both
accounts must be linked to your ATM / Debit Card. Maximum of 16 A/Cs (Savings /
Current) can be linked to a card.
REFILL YOUR PREPAID MOBILE Refill your prepaid mobile using Prepaid
Mobile Refill service instantly. HDFC Bank offers Prepaid Mobile Refill, which allows
you to recharge your prepaid mobile phone anytime from anywhere and pay directly from
your Bank account. Avoid hassles of withdrawing cash or searching for a retailer for
buying the recharge card.
You can avail of this service in two convenient ways:
Prepaid Mobile Refill on Internet
Prepaid Mobile Refill on ATM
PHONE BANKING: Your phone is now your bank. When you dial in to Phone
Banking, a voice prompt will guide you through the various transactions. You may also
talk to a Phone Banker, who will provide you with the required assistance. Avail of the
following services via Phone Banking:
a. Check your account balance - Get up-to-the-second details of your Savings or
Current Accounts and your Fixed Deposits. You can also get the details of the last 5
transactions on your account, or have a mini statement of last 9 transactions faxed across
to you.
b. Enquire on the cheque status - You can use Phone Banking to check on the status of
cheques issued or deposited from anywhere in India.
c. Order a Cheque Book / Account Statement - Just call Phone Banking and get your
Cheque Book or latest Account Statement delivered at your doorstep.
d. Stop Payment - Stop payment of a single cheque or a series of cheques, 24 hours a
day. Loan Related queries - Get details of the outstanding loan amount, enquire about
your loan account, request for an interest certificate and repayment schedule, etc. Just call
Phone Banking in your city and dial 4 to speak to our Phone Banker
e. Open a Fixed deposit or Enquire on your Fixed deposits / TDS*# - Talk to our
Phone Banker to easily open a Fixed Deposit over the phone, by simply authorizing a
transfer of funds from your Savings Account.
f. Transfer Funds between accounts*# - You can also transfer money from one of your
accounts to another. Both accounts must be linked to your Customer ID. You can transfer
amounts upto Rs 1 Lac in a single day.
g. Pay your bills - Pay your cellular, telephone, electricity and HDFC Bank Credit Card
bills through Phone Banking using Bill Pay, a comprehensive bill payments solution.
h. Report loss of your ATM / Debit Card / Forex Plus Card - If your ATM / Debit /
Forex plus Card are lost, call any Phone Banking number to deactivate your card(s).
i. Learn about all our other products - Get details on HDFC Bank products & services
by talking to our Phone Banker.
j. Enquire about latest Interest / Exchange rates - Get latest Interest rates on Deposits
and Foreign Exchange rates by talking to our Phone Banker.
k. Request a Demand Draft / Manager's Cheque #** - Call Phone Banking and get a
Demand Draft / Manager's Cheque delivered to your doorstep.
l. Demat Related Queries - Get the Account holding details, Transaction details, ISIN
Number of a scrip, Status of Depository Slips, details of Client Master list (Dividend
account, Charges Debit account, PAN etc.) & others. Call Phone Banking in your city &
dial 5 to speak to our Phone Banker.


Bauer , Malike and Falik , (2006) study revealed that the quality of e-banking
portals has a significant impact on the consumers quality perception in the
internet providing banks which serves a promising start for the best
establishment of an effective quality management .The empirical model study
validated a measurement model for web quality model based on security , trust,
basic service quality , value , trust ,responsiveness , buying service quality to
achieve the best customer satisfaction.

Reeti , Sanjay and Malhotra, (2009) investigated about the customers
perceptions about banking services in an emerging economy for which the
various determinants affecting the customer perception as well as attitude
towards banking services were predicted through study that was conducted on the
respondents taken from Northern part of India .Major findings depicted that
customer perceptions are influenced by the usage of e-banking services by the
kind of account they hold, age , profession , attached high degree of usefulness to
the balance enquiry service among e-banking services .It was also found that security and
truth are the most important factors in affecting their satisfaction levels and slow
transaction problem speed was the most frequent problem faced by majority of

Malhotra, Pooja and Singh, (2010) study examined various factors affecting
the banking services in India .The purpose of the study was to help in filling the
gap in knowledge about Banking Landscape in India. The study utilized sample
of 82 banks of India using the technique of Multiple Regression to explore the
determinants .The study reveled that bankers as well as society perceive that banking
services lag in terms of providing different products and services.

Kun-ho Lee, Shakir Ullah, (2011) studied consumer attitude towards Islamic Banking
in Pakistan. The purpose of this paper is to examine the different motivational factors that
lead to customers' Islamic bank selection decision in Pakistan. The paper presented
descriptive statistics and cross-tabulation analysis based on data collected from 357
customers. The findings revealed that Islamic banks' customers highly
value Shari'a compliance in their banks and that non-compliance with Shari'a principles
leads to disgruntled customers.

Goitom Tesfom, Nancy J. Birch, (2011) studied to examine whether switching barriers
in the retail banking industry affect different age groups differently. Questionnaires were
administered to 188 bank customers of different age groups, measuring their perception
of variables related to relational benefits, switching costs, availability and attractiveness
of alternatives, service recovery and retention. Results from independent two-sample t-
tests and logistic regression support all five hypotheses, confirming that young and older
bank customers differ significantly in their perception of switching barriers: relational
benefits, switching costs, availability and attractiveness of alternatives, service recovery
and the duration of time they intend to end their relationship with their banks. In terms of
practice the findings in this research highlight the need for managers to design different
switching barrier packages for each customer age group.
Bedman Narteh, Nana Owusu-Frimpong, (2011) study aimed to offers a deeper insight
into bank selection of Ghanaian students so as to offer bank managers the opportunity to
tailor-measure programmes aimed at attracting and retaining customers. The study
employed both qualitative and quantitative methods to investigate the problem. The drop
and pick convenience sampling method adopted resulted in 223 completed
questionnaires. The mean ranking and factor analysis methods were employed to identify
the major factors that influence the respondent bank selection. Over all, student
customers consider image, attitude and behavior of staff, core service delivery and
technology-related factors as the major issues that influence consumers' decision to open
and maintain an account. In a market where consumers respond differently to a marketing
offer, market segmentation becomes a necessity and therefore differences in male and
female consumers' selection criteria emanating from this study provide an excellent
opportunity for the banks to adopt segmentation-based strategies to serve the customers.
Riadh Ladhari, Ines Ladhari, Miguel Morales, (2011) The aim of their paper was to
compare perceptions of bank service quality among Tunisian and Canadian customers,
and to determine which dimensions of service quality make the greatest contribution to
overall customer satisfaction and loyalty. Data were collected using self-administered
questionnaires from two convenience samples of bank customers (250 in Canada and 222
in Tunisia). Service quality was measured using the five SERVQUAL dimensions of
tangibles, reliability, responsiveness, assurance, and empathy. Data were analyzed using
confirmatory factor analysis, ANOVA and linear regression. Respondents in both
countries reported high levels of perceived service quality in banks. However, Canadians
reported higher perceived service quality than Tunisians for all five SERVQUAL
dimensions, and for 21 of the 22 individual items. In the Canadian sample, empathy and
reliability were found to be the most important predictors of satisfaction and loyalty,
while in the Tunisian sample, reliability and responsiveness were the most important
predictors of satisfaction and loyalty.
Sergios Dimitriadis, et al (2011) studied to investigate the possibility of using trust in
two self-service bank channels: internet, and phone banking, to segment potential users of
these channels. Using data from a survey of 762 real bank customers discriminant
analysis is used to test variables differentiating two groups of customers having,
respectively, high and low trust in internet and phone banking. Results showed that
the groups of high and low channel-trustors are different in a number of attitudinal,
behavioral and psychographic criteria. In addition, the two groups react differently in
terms of intention to use internet, and phone banking.
Sergios Dimitriadis (2011) studied to explore benefits customers expect from a long-
term relationship with their bank and the costs associated with such a relationship; it
further tests these relational benefits and costs as segmentation variables. A qualitative
study based on three focus groups was designed to provide initial input on different types
of expected relational benefits and costs. Then, quantitative data were collected from a
survey of 209 real bank customers. Analysis revealed five types of expected benefits and
two types of costs. Four clusters were formed out of these seven expected benefits/costs.
These clusters are also different on demographic, behavioral and psychographic variables
and present clear and consistent relational profiles.
Sandy Ng, et al (2011) studied to investigate the effects of relationship benefits on
relationship quality and aspects of service quality, namely technical and functional
quality, and the subsequent influence on word-of-mouth behavior. The paper reports
results from a structural equation model that utilizes data from 591 consumers across a
range of services. The findings highlight the important role of relationship benefits in
driving customer perceptions of technical, functional and relationship quality. While
confidence, social and special treatment benefits drive technical and functional quality, it
is only confidence benefits that drive relationship quality. Furthermore, it is found that
functional and relationship quality drive word-of-mouth behavior.


To determining growth direction of online banking service.
Promoting E-banking services in banking industry.
Customer perception will be taken into consideration about the internet banking.

To study about the factors that affects the customer perception towards ebanking
of HDFC bank.
To know about the current and future prospects of E-Banking to the customers.
To find out the major problems faced by the customers while using e-banking

4.1 Problem Statement: - The HDFC Bank is one of the private banks which started its
operations in the Ludhiana State; therefore the need arises to know what consumers
perceive about HDFC bank.

Title: - The title of study is Consumer Perception towards HDFC bank.

4.2 Objectives of the Study:-
1) To understand the customers perception on the service delivery of the bank.
2) To know why consumers dont have account with HDFC bank.

4.3 Need and Importance of the Study:-
One of the most important developments in banking sector has been the growth of the
financial industry over the past two decades. The benefits of financial industry can be
seen in the form of large scale industrial development, increased employment
opportunities, higher turnover as well as revenue generation to the government and also
increase in export of goods and services.
Banking industry in India has undergone a process of evolution with the package of time.
To count or to depend on a bank merely by the function it is supposed to perform would
be insufficient in the world that we live today. Investments play a vital role on the part of
the customers. A real investor does not simply throw his or her money random
investment; he or she performs through analysis and commits capital only when there is a
reasonable expectation of profit. Hence they both are interdependent i.e., it all depends
upon the customer. Customer knows what to expect. Today banks have a relationship
management approach with their clients. Banks are offering more customized solutions to
their clients. The need of the hour is not only to introduce more value added products for
which the customers are willing to pay here but also to innovate & enter new segments
like small business & periodical finance. Everything resolves around the customer and
banks via with their innovative and quality products to suit their clients. Today the
bottom line for any customer is convenience understanding and evaluating the customers
perception on the service & products of a bank has without doubt become a need, which
propels the body to structure itself for better performance and service. Thus delivering
high quality service to clients is just as important as delivering performance that meets or
exceeds their expectations. It is in this context that a study is necessary to know about
awareness levels on the services provided by the HDFC Bank and the customer
perception towards the bank.

4.4 Scope of Study:-
The scope of study for this research is the Ludhiana city and the sample size for this
research is 100.
4.5 Research Design:-
The design used for this research is descriptive research methodology. The term
descriptive research refers to the type of research question, design, and data analysis that
will be applied to a given topic. Descriptive statistics tell what is, while inferential
statistics try to determine cause and effect.
Descriptive research can be either quantitative or qualitative. It can involve collections of
quantitative information that can be tabulated along a continuum in numerical form, such
as scores on a test or the number of times a person chooses to use a-certain feature of a
multimedia program, or it can describe categories of information such as gender or
patterns of interaction when using technology in a group situation. Descriptive research
involves gathering data that describe events and then organizes, tabulates, depicts, and
describes the data collection.

4.6 Sampling Tool:-
The sampling tool used in this research is Questionnaire. A questionnaire is a means of
eliciting the feelings, beliefs, experiences, perceptions, or attitudes of some sample of
individuals. As a data collecting instrument, it could be structured or unstructured.
The questionnaire is most frequently a very concise, preplanned set of questions designed
to yield specific information to meet a particular need for research information about a
pertinent topic.


Economy - Expense and time involved in training interviewers and sending them to
interview are reduced by using questionnaires.

Uniformity of questions - Each respondent receives the same set of questions phrased
in exactly the same way. Questionnaires may, therefore, yield data more comparable
than information obtained through an interview.

Standardization - If the questions are highly structured and the conditions under which
they are answered are controlled, then the questionnaire could become standardized.

Respondents motivation is difficult to assess, affecting the validity of response.

Unless a random sampling of returns is obtained, those returned completed may
represent biased samples.

4.6.1 Sampling Design:-
The study has used Non- Probability sampling design.
Non- Probability sampling involves deliberate selection of a particular unit of the
population for constituting a sample.

4.6.2 Sampling Method:-
The sampling method used in this study is Convenience sampling. Convenience
sampling is a non-probability sampling technique where subjects are selected because of
their convenient accessibility and proximity to the researcher. The subjects are
selected just because they are easiest to recruit for the study and the researcher did not
consider selecting subjects that are representative of the entire population.
In all forms of research, it would be ideal to test the entire population, but in most cases,
the population is just too large that it is impossible to include every individual. This is the
reason why most researchers rely on sampling techniques like convenience sampling, the
most common of all sampling techniques. Many researchers prefer this sampling
technique because it is fast, inexpensive, easy and the subjects are readily available.
4.7 Data Collection Method:-
Primary Data: The primary data was collected by means of a survey. Questionnaire was
prepared and the sample unit was approached to fill up the questionnaire. The filled up
information was later analyzed to obtain the required information.
Secondary Data: In order to have a proper understanding of the sector of Banking, an in
depth study was done from the various books, magazines, journals and articles written on
the subject. Information was also taken from the internet related to industry, company,

4.8 Statistical Tool
The study has used statistical tool for the analysis of data. The tool used in this research is
the Factor Analysis tool which is used for data reduction. Factor analysis is a method for
investigating whether a number of variables of interest Y1 , Y2 , :: :, Yl, are linearly
related to a smaller number of unobservable factors F1, F2, : ::, Fk .
Factor analysis is a statistical method used to describe variability among
observed variables in terms of a potentially lower number of unobserved variables
called factors. In other words, it is possible, for example, that variations in three or four
observed variables mainly reflect the variations in a single unobserved variable, or in a
reduced number of unobserved variables. Factor analysis searches for such joint
variations in response to unobserved latent variables. The observed variables are modeled
as linear combinations of the potential factors, plus "error" terms. The information gained
about the interdependencies between observed variables can be used later to reduce the
set of variables in a dataset. Factor analysis originated in psychometrics, and is used in
behavioral sciences, social sciences, marketing, product management, operations
research, and other applied sciences that deal with large quantities of data.
4.9 Limitation of the Study
The data from the sample may not reflect the universe; since it is restricted only to the
area Ludhiana city and only 100 Respondents. There was also a time limitation. As the
topic is wide, all matters regarding the study could not be analyzed.

Factor Analysis:-

KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .551
Bartlett's Test of Sphericity Approx. Chi-Square 238.155
Df 105
Sig. .000
Table 5.1

In order to determine if the data is appropriate for factor analysis, it is required to check
the data adequately for analysis. This is accomplished by using the KMO and Bartletts
test. A KMO value of 0.90 is best and below 0.50 is unacceptable. The figure for KMO
in the above table (Table 5.1) i.e. (.551) is greater than 0.50 (minimum value) which
means data is appropriate for factor analysis.


Initial Extraction
Ease of opening new account
1.000 .783
Ease of operating account 1.000 .655
Minimum balance required (AQB)
1.000 .711
Security of money at bank 1.000 .652
Attitude of bank staff 1.000 .480
Location of bank branches 1.000 .557
Listening to complaints 1.000 .776
Feeling of warmth & friendliness
1.000 .620
Credit card facility provided by the
1.000 .842
Debit card facility provided by the bank
1.000 .648
Net banking facility provided by the
1.000 .721
Loan facility provided by the bank
1.000 .541
Reputation of the bank 1.000 .816
Interest rates provided by the bank
1.000 .579
Effectiveness of Customer care cell
1.000 .610
Extraction Method: Principal Component Analysis.
Table 5.2
From the above communalities table the factors having value closer to 1(Initial) are Ease
of opening new account (.738), Minimum Balance Required (AQB) (.711), Listening to
Complaints (.776), Credit card facility (.842), Net Banking facility (.721) and Reputation
of bank (.816) which these factors were considered the most important factors.

Graph 5.1

The above graph represents the combination of the Eigen values and the component
numbers. The graph is useful for determining how many factors to retain, where the curve
start to flat it highlights the interest point. it can be seen that the curve begins to flatten
between factors 2 and 3.The factor 6 has an Eigen value less than 1 so only five factors
have been retained.

Component Matrix


1 2 3 4 5 6
Ease of opening new account
.227 .837 -.107 -.036 .085 -.111
Ease of operating account .328 .659 -.216 .185 -.104 -.147
Minimum balance required
.557 .012 .182 -.604 -.015 -.052
Security of money at bank .345 .291 .164 .549 -.287 .193
Attitude of bank staff .288 .328 .219 -.429 -.208 .117
Location of bank branches .530 -.384 -.245 .215 .059 -.139
Listening to complaints .517 -.102 -.042 -.385 .427 .407
Feeling of warmth &
.471 -.279 .325 .369 .004 .280
Credit card facility provided by
the bank
.031 .222 -.638 .094 .393 .470
Debit card facility provided by
the bank
-.077 .675 .280 .090 -.023 .315
Net banking facility provided by
the bank
.243 .084 .770 .042 .221 -.103
Loan facility provided by the
.598 .171 -.268 .002 -.173 -.230
Reputation of the bank .388 -.022 .122 .306 .651 -.365
Interest rates provided by the
.574 -.175 -.308 -.093 -.274 -.202
Effectiveness of Customer care
.451 -.417 .036 .124 -.292 .361
Extraction Method: Principal Component Analysis.

a. 6 components extracted.

Table 5.3
The table shows the combination of 15 variables. The higher the absolute value of
loading the more the factor contributes to variable. The gape of the variables is less than
0.5 this makes easy to analyze the table. We cover up all the values having values less
than 0.5.

Rotated Component Matrix


1 2 3 4 5 6
Ease of opening new account
.819 -.061 .187 -.222 .105 .114
Ease of operating account .785 .179 -.006 -.032 .034 .067
Minimum balance required
.016 .258 .792 -.012 .072 -.110
Security of money at bank .505 .005 -.155 .603 -.010 -.095
Attitude of bank staff .276 -.052 .592 .026 -.180 -.130
Location of bank branches -.116 .618 -.048 .277 .262 .118
Listening to complaints -.141 .084 .637 .177 .238 .504
Feeling of warmth & friendliness
-.087 .075 .064 .735 .247 -.033
Credit card facility provided by
the bank
.182 -.012 -.106 -.039 -.020 .892
Debit card facility provided by
the bank
.555 -.552 .114 .123 -.079 .027
Net banking facility provided by
the bank
.058 -.310 .318 .265 .515 -.429
Loan facility provided by the
.402 .584 .178 .070 .049 .009
Reputation of the bank .086 .164 -.049 .032 .881 .047
Interest rates provided by the
.076 .720 .188 .116 -.070 -.019
Effectiveness of Customer care
-.210 .304 .143 .651 -.163 .051
Rotated Component Matrix


1 2 3 4 5 6
Ease of opening new account
.819 -.061 .187 -.222 .105 .114
Ease of operating account .785 .179 -.006 -.032 .034 .067
Minimum balance required
.016 .258 .792 -.012 .072 -.110
Security of money at bank .505 .005 -.155 .603 -.010 -.095
Attitude of bank staff .276 -.052 .592 .026 -.180 -.130
Location of bank branches -.116 .618 -.048 .277 .262 .118
Listening to complaints -.141 .084 .637 .177 .238 .504
Feeling of warmth & friendliness
-.087 .075 .064 .735 .247 -.033
Credit card facility provided by
the bank
.182 -.012 -.106 -.039 -.020 .892
Debit card facility provided by
the bank
.555 -.552 .114 .123 -.079 .027
Net banking facility provided by
the bank
.058 -.310 .318 .265 .515 -.429
Loan facility provided by the
.402 .584 .178 .070 .049 .009
Reputation of the bank .086 .164 -.049 .032 .881 .047
Interest rates provided by the
.076 .720 .188 .116 -.070 -.019
Effectiveness of Customer care
-.210 .304 .143 .651 -.163 .051
Rotation Method: Varimax with Kaiser Normalization.

Table 5.4


The idea of rotation is to reduce the number of factors of those variables which have high
rating it makes the interpretation of the analysis easier. The next step is to look at the
content of questions that load on to some factor so as to identify the common themes. In
one the common name given to ease of opening new account and operating account is
Do you have an account with HDFC bank?

Frequency Percent Valid Percent Cumulative Percent
Valid yes 79 79.0 79.0 79.0
No 21 21.0 21.0 100.0
Total 100 100.0 100.0

Table 5.5

Graph 5.2
The above graph indicates that 79% of the respondents were having account with HDFC
bank and the rest 21% were not having account with HDFC bank. This shows that the
number of account holders of HDFC bank is good numbers in Ludhiana city as the bank
has opened several branches in the Ludhiana city and ATMs as well.
Which type of account do you have?

Frequency Percent Valid Percent Cumulative Percent
Valid Current A/c 22 22.0 27.8 27.8
Saving A/c 42 42.0 53.2 81.0
Demat A/c 6 6.0 7.6 88.6
Salary A/c 9 9.0 11.4 100.0
Total 79 79.0 100.0

Missing System 21 21.0

Total 100 100.0

Table 5.6

Graph 5.3
The above graph indicates that the out of 100 respondents 22 were having current A/c, 42
were having saving account, 6 were having demat A/c and 9 were having salary accounts
in HDFC bank. This shows that the saving A/c holders are in large numbers as compared
to other account holders.

Time you are associated with HDFC bank?

Frequency Percent Valid Percent
Valid 3 Months 13 13.0 16.5 16.5
6 Months 31 31.0 39.2 55.7
1 Year 20 20.0 25.3 81.0
More Than 1 Year 15 15.0 19.0 100.0
Total 79 79.0 100.0

Missing System 21 21.0

Total 100 100.0

Table 5.7

Graph 5.4
The above graph indicates that 40% of the respondents are associated with HDFC bank
from last 6months while 25% respondents are associated with HDFC bank from one year.
This show that the number of account holders has increased in the Ludhiana city as the
bank widened its network in this region.

Do you have an account with other bank?

Frequency Percent Valid Percent Cumulative Percent
Valid Yes 66 66.0 83.5 83.5
No 13 13.0 16.5 100.0
Total 79 79.0 100.0

Missing System 21 21.0

Total 100 100.0

Table 5.8

Graph 5.5
The above graph indicates that the respondents who are having account with HDFC bank,
80% are having account with other bank and the 20% are having HDFC bank account
only. This shows that the customers of other banks have switched over to HDFC bank
and the number tends to increase day by day.

In which bank you have an account?

Frequency Percent Valid Percent
Valid J&K Bank 29 29.0 43.9 43.9
SBI 12 12.0 18.2 62.1
PNB 22 22.0 33.3 95.5
J&K Co-operative Bank 3 3.0 4.5 100.0
Total 66 66.0 100.0

Missing System 34 34.0

Total 100 100.0

Table 5.9

Graph 5.6
The above graph indicates that the HDFC accounts holders are having account with
HDFC bank(43%), SBI(18%), PNB(33%) and 6% are having account with HDFC bank.
This shows that maximum customers of HDFC bank are having account with HDFC
bank and in future the number is going to increase with the opening of more branches.

Reason for not having account with HDFC bank?

Frequency Percent Valid Percent
Valid Security 3 3.0 14.3 14.3
Less No. of branches 8 8.0 38.1 52.4
Unawareness of products 3 3.0 14.3 66.7
Reputation of the bank 2 2.0 9.5 76.2
Satisfied with your bank 5 5.0 23.8 100.0
Total 21 21.0 100.0

Missing System 79 79.0

Total 100 100.0

Table 5.10

Graph 5.7
The above graph indicates that the reason why customers are not having account with
HDFC bank.40% of the respondents say that due to the less number of branches they
dont prefer banking with HDFC bank.25% of respondents say they are satisfied with the
banks in which they have account.


Frequency Percent Valid Percent Cumulative Percent
Valid Male 87 87.0 87.0 87.0
Female 13 13.0 13.0 100.0
Total 100 100.0 100.0

Table 5.11

Graph 5.8
The above graph indicates that out of 100 respondents 85% were male and 15% were
female respondents.


Frequency Percent Valid Percent Cumulative Percent
Valid 18-25 6 6.0 6.0 6.0
25-30 28 28.0 28.0 34.0
30-35 27 27.0 27.0 61.0
35-40 24 24.0 24.0 85.0
40-45 13 13.0 13.0 98.0
Above 45 2 2.0 2.0 100.0
Total 100 100.0 100.0

Table 5.12

Graph 5.9
The above graph indicates that the maximum number of respondents belonged to the age
group 25-30(29%),and 27% belonged to age group 30-35.This shows that 75%
respondents belonged to age group 25-40.


Frequency Percent Valid Percent Cumulative Percent
Valid Govt. Employee 27 27.0 27.0 27.0
Private Employee 43 43.0 43.0 70.0
Businessman 30 30.0 30.0 100.0
Total 100 100.0 100.0

Table 5.13

Graph 5.10
The above graph indicates that 28% of respondents are Govt. employees while 45% are
Private employees and 27% are businessman.

Monthly Income

Frequency Percent Valid Percent Cumulative Percent
Valid 10000-15000 11 11.0 11.0 11.0
15000-25000 40 40.0 40.0 51.0
25000-35000 29 29.0 29.0 80.0
35000-45000 15 15.0 15.0 95.0
Above 45000 5 5.0 5.0 100.0
Total 100 100.0 100.0

Table 5.14

Graph 5.11
The above graph indicates that 40% of the respondents are having monthly income in the
range of 15000-25000, 28% are having income of range 25000-35000, and 16 % are
having income in the range 35000-45000.

6.1 Findings from HDFC Customers:-

HDFC Bank has maintained their customer relationship very well and it has
proved to be one of their best strategies in todays era of challenge and
competitive environment and giving them better chances of growth and survival.

HDFC Bank is offering services to its customers as per the expectations of the
customers themselves, thereby proving to be their one of the core competency.

Currently HDFC Banks main source of revenue is through saving and that of the
current accounts which is increasing day by day.

HDFC Bank is meeting overall satisfaction of their customer class to a very good
level, which is every banks prime concern and I can say that there is always room
for improvement as HDFC Bank to take customer satisfaction to the level of

HDFC Bank is meeting standards which they have set in advance as their strategy
of providing services to their customers in very les time.

It was found that physical evidence is the major contributor that gains the
attention of the people when they enter the HDFC Bank but I cannot nullify the
facts like employee friendliness and immediate attention also contributes heavily
in capturing minds of the customer to a great extent.

The sales people of HDFC Bank are dedicated towards the goals of the company
in a way where they always cross sell other products to different existing
customers thereby giving the company more chances of profit leverage without
striving for different sources.

6.2 Findings from Non-HDFC Bank Customers:-

It was found that the brand recall of J&K Bank is more than other banks including
HDFC Bank in J&K State.

Most of the Non-HDFC Bank customers are self motivated and are willing to start
banking with HDCF Bank provided they get better services from HDFC Bank as
compared to their current bank.

More than Fifty percent of Non-HDFC Bank customers perceive HDFC Bank as a
bank that is best at providing better service quality to customers.

Many Non-HDFC Bank customers do want to continue banking with their current
banks because of several reasons like security, brand loyalty, and ongoing
transactions with their respective banks.

6.3 Suggestions & Recommendations:-

HDFC Bank is meeting overall satisfaction needs of their customer class to good
extent but they need to take their overall satisfaction to the level of excellence.
More than 50% of Non-HDFC Bank customers perceive HDFC Bank as a
company that is best at providing better service quality. So, there is an
opportunity for HDFC Bank to motivate those Customers and make them switch
from their current bank towards the HDFC Bank.
Contract sales executives should be trained to pitch the product features and its
values added services to make customers product selection convenient.
Majority of the Non-HDFC customers complained that they have never been
approached by the sales people of HDFC Bank. So, I suggest that the sales people
of HDFC Bank need to approach more and more customers and inform them
regarding the products of HDFC Bank.
There are less number of branches and ATMs of HDFC Bank in valley. So, my
suggestion would be to open more branches and ATMs across the valley in order
to capture more potential customers and thereby increasing their brand awareness.

6.4 Conclusion:-

Products offered by the other banks are cheaper as compared to the HDFC Bank.
The network (branches and ATMs) of HDFC Bank in Ludhiana is lagging behind
than its competitors like SBI and PNB.
Majority of the respondents are of the opinion that the employees at HDFC Bank
have a very professional approach towards their work.
The level of service in terms of delivering whatever is promised and fast response
in case of problems, are the most important benefits that the customer seek from
the bank, they have a Current Account with.
Customers in Ludhiana are not well aware about HDFC Bank and its services and
products, as compared to its competitors.
The modern technology like Net Banking, Phone Banking used by the HDFC
Bank for providing banking services has sent positive signals in the minds of
Most of the customers feel the charges which are associated with AQB
maintenance are too high, and the AQB to be maintained is also very high.


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Topic:-Consumer Perception towards HDFC bank
Dear Respondent,
Q1:- Do you have an account with HDFC bank?
Yes No
If (No) then Go to Q7.
Q2:- Which type of account do you have?
Current A/c Saving A/c Demat A/c Salary A/c
Other (Specify) ______________
Q3:- Time you are associated with HDFC bank?
3 Months 6 Months 1 Year More than 1 Year
Q4:- Rate the following attributes given below according to the scale 1-5
1 Very Bad 2 Bad 3 Average 4 Good 5
Very Good
Attributes 1 2 3 4 5
Ease of opening new account
Ease of operating account
Minimum balance required (AQB)
Security of money at bank
Attitude of bank Staff
Location of bank branches
Listening of Complaints
Feeling of warmth & friendliness
Credit Card facility provided by the bank
Debit Card facility provided by the bank
Net banking facility provided by the bank
Loan facility provided by the bank
Reputation of the bank
Interest rates provided by the bank
Effectiveness of customer care cell

Q5:- Do you have an account with other bank?
Yes No
Q6:- In which bank you have an account?
J&K Bank SBI PNB J&K Co-operative Bank
Go to Q8.
Q7:- Reason for not having account with HDFC bank? (Only one particular reason)
Security Less no. Of branches Unawareness of the products
Reputation of the bank Satisfied with your bank
Q8:- Gender: Male Female
Q9:- Age: 18-25 25-30 30-35 35-40 40-45 Above
Q10:- Occupation: Govt. Employee Private Employee
Businessman Q11:- Monthly Income:
10000-15000 15000-25000 25000-35000 35000-45000
Above 45000