THE PROJECT

A REPORT

ON “Customer need analysis of HDFC Bank

: a comparative study with competitors

Product”

-Presented byBiswajit Kakati

IBS KolkataEnrolment no- 07bs1032

The sector

Banking- the catalyst for socio-economic development of a society.

Banking in India originated in the first decade of 18th century - The General Bank of India-1786-Bank of Hindustan.

The oldest bank –State Bank of India-established as "The Bank of Bengal" in Calcutta in June 1806.

fully Indian owned bank was the Allahabad Bank, which was established in 1865

The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935.

Source RBI

The change…..In 1949, the Banking Regulation Act was

enacted which empowered the Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in India.“

GOI issued an ordinance and nationalised the 14 largest commercial banks with effect from the midnight of July 19, 1969.

In the early 1990s - Narsimha Rao government - liberalisation -licences to a small number of private banks- New Generation tech-savvy banks-such as Global Trust Bank , Axis Bank, ICICI Bank and HDFC Bank

Source RBI

Current scenario-

81 scheduled commercial banks - 28 public sector banks , 24 private banks and 29 foreign banks-combined network of over 53,000 branches and 17,000 ATMs.

report by ICRA Limited, a rating agency,

public sector banks- over 75 percent of total assets of the banking industry,

private- 18.2% foreign banks- 6.5%

Source ICRA and RBI

Continues……A little data on commercial banks- ( RBI )

Rural Semi-urban

Urban/metropolitan

OFFICES 30,546 16,743 25,724

DEPOSITS 276,907 392,264 2271,808

CREDIT 168,804 211,103 1777,396

Source RBI

COMPANY PROFILEOne of the first to get “in principal approval” from RBI after Banking Industry Liberalisation

Number of branches – 753

Operates in 320 cities across India

For fifth time in a row “the best bank” in India( indiatoday survey )

The largest private sector bank after merger

Source hdfcbank.com

SHAREHOLDING PATTERN

Source hdfcbank.com

Guwahati, an analysis from banking perspectiveThe following are the Business hub in Guwahati city-GaneshguriFancy BazarChandmariNoonmatiDispurBeltolaMaligaonPaltan BazarUlubariBhangagarh

Continues..

HDFC bank presence- SBI presence -

Fancy BazarChandmariNoonmatiDispurBhangagarh

GaneshguriFancy BazarChandmariNoonmatiDispurBeltolaMaligaonPaltan BazarUlubariJalukbari

The flow of the analyses-

About the productcustomer`s most sought after servicesWhere they are satisfied and where they are

not.Judging customers awareness.Analysis of the gap in servicesThe SWOT analysisProblems and recommendations.

The product-The bank offers product in three broad categories-

Retail banking- for retail customers- deposit products, loans, debit cards, credit cards and others

Wholesale banking- for top , medium and small scale enterprises.

Treasury operation-manage balance sheet and provides foreign exchange facility to customers.

Continues….. The various benefits offered by HDFC Bank

with retail and wholesale banking are-Pay order facilityFacility of demand draftRTGS facilityNEFT facilityFacility of free cheque bookMobile bankingNet bankingInsta alert facility

customer`s most sought after services Online Fund Transfer Facility available of cash deposit for inter or intra

branch Banking and cash withdrawal Free cheque book Payable at par cheque book facility Phone banking facility Insta alert facility Free pay orders/ demand draft Monthly statement Availability of loan Working timing of the bank

Where dissatisfaction lies

Phone banking facility

Insta alert facility

Availability of loan

Working timing of HDFC

Where they are satisfied-Online Fund Transfer

 Facility available of cash deposit for inter or intra branch Banking and cash withdrawal

Free pay orders/ demand draft

Judging customer`s awarenessAre you aware of various banking terms like –

activation of account and AQB? 71.85% of the respondent say they are not.

no

Continues………..Are you aware of various benefit you can

get if you keep your account active ? 75.56% of the respondent say they are

not

no

yes

The bank`s strength and weakness

Strength- Online Fund Transfer  Facility available of cash deposit for inter or intra

branch Banking and cash withdrawal Free pay orders/ demand draft

Weakness- Working timing of HDFC Availability of loan Monthly statement Insta alert facility Phone banking facility Net banking facility

Analysis of gap in services-

Expected service

Perceived service

Service delivery

Translation of service into perceive quality

Management perception

Gap 3

Gap 2

Gap 1

Continues…The gapes in the services of HDFC Bank are as

follows-

Gap between consumer expectation and management perception - gap 1

Gap between management perceptions and service –quality specification - gap 2

Gap between service – quality specification and service delivery -gap 3

Some other areas of concern The following are some other areas causing

customersswitching to other banks- Location/working time Wait for service Unresponsive Reluctant response Cut-throat competition Business obligations

The SWOT analyses

STRENGHT- A complete range of product for retail banking.

A sound IT base.

A strong wholesale banking base by innovating on product offerings.

The efficient utilisation of cross selling.

Increased geographical presence.

A timely merger.

Wide range of product for wholesale banking.

continuesWEAKNESS-

Failure in providing prompt services.

Non responsive.

Less number of ATMs and branches.

Lack of modern equipment.

Working hours.

CONTINUES…..

OPPORTUNITY-Rise in upper and middle class population- due to

GDP growth

Liberalisation of trade and business.

Largely unexplored market in regions where only public sector banks operates.

Continues…

THREAT-may face increased competition as a result of revised

guidelines that relax restrictions on the presence of foreign banks in India.

If unable to manage rapid growth, business could be adversely affected.

Competition from large public sector banks as well as from private banks.

Retaining efficient management team in the face of competition.

Getting permission of RBI for opening up new branches.

Problems and recommendations Phone banking facility

Insta alert facility

Availability of loan

Working timing of HDFC

Wait for service

 

Continues… Reluctant response

Lack of knowledge among customers about various banking concepts.

Lack of knowledge among customers about various benefits

Less branches and ATMs

Not providing service at promised time

Continues…

Lack of modern equipment like reservation facility.

Reluctant in providing information to customers about various after sales requirement

recommendations Building of a robust phone network system.

Quick response to customers.

Introduction of facilities like reservation system which will cut waiting time for customer considerably.

Increase awareness among customers about various banking terms and conditions.

Continues… Extensive advertising where the bank enjoys

advantage like RTGS and NEFT etc.

Delivery of services at promised time.

Keeping customers informed as to when service will be performed.

Expansion of branches and ATMs in the areas which are business hub.

The areas where branch expansion is necessary-( mark)

(1)Beltola(2)Ganeshguri(3)Ulubari(4)Maligaon

1

2

34

Map source mapsofindia.com

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