PROJECT REPORTON

HRM IN PUBLIC ADMINISTRATION AND CORPORATE SECTOR,

EQUITY MARKET & INVESTMENT.

ATHDFC BANK PALAMPUR

Summer Training Project ReportSubmitted in the partial fulfillment of the Requirement for the

award of the 

Sri Sai University - Palampur (Session 2015-2016)

SUBMITTED TO::- SUBMITTED BY::-Mr. Hemraj Swati Awasthi MBA – 3rd SemesterDeptt. Of Management Reg. No. 614012030

DECLARATION

I hereby declare that the Project report titled “HRM in Public Administration and corporate Sector,Equity market and Investment” 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 fulfillment for the degree of Master of Business Administration.

Date: Swati Awasthi MBA – 3rd Semester

Reg. No. 614012030

PREFACE

This project report attempts to bring under one cover the entire hard work and dedication put in by

me in the completion of the project work on“HRM in Public Administration and corporate

Sector,Equity market and Investment” I have expressed my experiences in my own simple way. I hope

who goes it will find it interesting and worth reading. All constructive feedback is cordially invited.

.

Swati Awasthi

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, HRM in Public Administration

and corporate Sector,Equity market and Investment” is my original work and has not be “”.

I wish to express my gratitude to the branch manager Mr. NAVEEN SHARMA of HDFC BANK,

PALAMPUR for giving mean opportunity to be a part of their esteem organization and enhance my

knowledge by granting permission to do a summer training Project. 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.HEMRAJ from SRI SAI UNIVERSITY (PALAMPUR) for being a source of support

during this training 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.

Swati Awasthi

INDEX

CONTENTS PAGE NO.

1. INTRODUCTION

2. COMPANY PROFILE

3. HRM IN PUBLIC ADMINISTRATION AND CORPORATE SECTOR,EQUITY MARKET AND INVESTMENT

4. RESEARCH METHODOLOGY

5. DATA ANALYSIS

6. CONCLUSION

7. RECOMMENDATIONS

8.LIMITATIONS

9. REFERENCES

10. ANNEXURE: QUESTIONNAIRE

CHAPTER -1INTRODUCTION OF

BANKING

INTRODUCTION OF BANKINGToday‟s finicky banking customers will settle for nothing less. The customer has come to

realize somewhat belatedly that he is the king. The customer‟s choice of one entity over

another as his principal bank is determined by considerations of service quality rather than

any other factor. He wants competitive loan rates but at the same time also wants his loan or

credit card application processed in double quick time. He insists that he be promptly

informed of changes in deposit rates and service charges and he bristles with „customary

rage‟ if his bank is slow to redress any grievance he may have. He cherishes the

convenience of impersonal net banking but during his occasional visits to the branch he also

wants the comfort of personalized human interactions and facilities that make his banking

experience pleasurable. In short he wants financial house that will more than just clear his

cheque and updates his passbook: he wants a bank that cares and provides great services.

So does HDFC bank meet these heightened expectations? What are the customers‟

perceptions of service quality of the banks? Which dimension of service quality of HDFC

bank is 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 “, HRM in

Public Administration and corporate Sector,Equity market and Investment”

INTRODUCTION OF HDFC BANK

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 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. HDFC Bank comprises of a dynamic and enthusiastic team determined to accomplish the vision of becoming a World-class Indian bank. HDFC bank‟s business philosophy is based on our four core values - Customer Focus, Operational Excellence, Product Leadership and People. They believe that the ultimate identity and success of their bank will reside in the exceptional quality of people and their extraordinary efforts. They are committed to hiring, developing, motivating and retaining the best people in the industry.

CHAPTER-2 COMPANY PROFILE

Equity Market

HISTORY OF EQUITY MARKET The history of the Indian equity market goes back to the 18th century when securities of the East India Company were traded. Till the end of the 19th century, the trading of securities was unorganized and the main trading centers were Calcutta.and.Bombay

Trade activities prospered with an increase in share price in India with Bombay becoming the main source of cotton supply during the American Civil War (1860-61). In 1865, there was drop in share prices. The stockbroker association established the Native Shares and Stock Brokers Association in 1875 to organize their activities. In 1927, the BSE recognized this association, under the Bombay Securities Contracts ControlAct,1925. The Indian Equity Market was not well organized or developed before independence. After independence, new issues were supervised. The timing, floatation costs, pricing, interest rates were strictly controlled by the Controller of Capital Issue (CII). For four and half decades, companies were demoralized and not motivated from going public due to the rigid rules of the Government. In the 1950s, there was uncontrollable speculation and the market was known as 'Satta Bazaar'. Speculators aimed at companies like Tata Steel, Kohinoor Mills, Century Textiles, Bombay Dyeing and National Rayon. The Securities Contracts (Regulation) Act, 1956 was enacted by the Government of India. Financial institutions and state financial corporation were developed through an established network. In the 60s, the market was bearish due to massive wars and drought. Forward trading transactions and 'Contracts for Clearing' or 'badla' were banned by the Government. With financial institutions such as LIC, GIC, some revival in the markets could be seen. Then in 1964, UTI, the first mutual fund of India was formed. In the 70's, the trading of 'badla' resumed in a different form of 'hand delivery contract'. But the Government of India passed the Dividend Restriction Ordinance on 6th July, 1974. According to the ordinance, the dividend was fixed to 12% of Face Value or 1/3 rd of the profit under Section 369 of The Companies Act, 1956 whichever is lower

EQUITY MARKETThe Indian Equity Market is more popularly known as the Indian Stock Market. The Indian equity market has become the third biggest after China and Hong Kong in the Asian region. According to the latest report by ADB, it has a market capitalization of nearly $600 billion. As of March 2009, the market capitalization was around $598.3 billion (Rs 30.13 lakh crore) which is one-tenth of the combined valuation of the Asia region. The market was slow since early 2007 and continued till the first quarter of 2009

A stock exchange has been defined by the Securities Contract (Regulation) Act, 1956 as an organization, association or body of individuals established for regulating, andcontrollingofsecurities.

The Indian equity market depends on three factors

Funding into equity from all over the world Corporate houses performance Monsoons

The stock market in India does business with two types of fund namely private equity

fund and venture capital fund. It also deals in transactions which are based on the

two major indices - Bombay Stock Exchange (BSE) and National Stock.

The market also includes the debt market which is controlled by wholesale dealers,

primary dealers and banks. The equity indexes are allied to countries beyond the

border as common calamities affect markets. E.g. Indian and Bangladesh stock

markets are affected by monsoons.

The equity market is also affected through trade integration policy. The country has

advanced both in foreign institutional investment (FII) and trade integration since

1995. This is a very attractive field for making profit for medium and long term

investors, short-term swing and position traders and very intra day traders.

The Indian market has 22 stock exchanges. The larger companies are enlisted with

BSE and NSE. The smaller and medium companies are listed with OTCEI (Over The

counter Exchange of India). The functions of the Equity Market in India are supervised

by SEBI (Securities Exchange Board of India).

INVESTMENT

Investment is sacrificing something in present for gaining something or benefiting

something later. Use of capital to create more money, either through income-producing

vehicles or through more risk-oriented ventures designed to result in capital gains.

Investment can refer to a financial investment (where an investor puts money into a vehicle)

or to an investment of effort and time on the part of an individual who wants to reap profits

from the success of his labor. Investment connotes the idea that safety of principal is

important. Speculation, on the other hand, is far riskier.

OBJECTIVE OF INVESTMENT

The basic objective of investment is earning benefits or profits. These are some objectives of

investment:

Safety

Perhaps there is truth to the axiom that there is no such thing as a completely safe and

secure investment. Yet we can get close to ultimate safety for our investment funds through

the purchase of government-issued securities in stable economic systems, or through the

purchase of the highest quality corporate bonds issued by the economy's top companies.

Such securities are arguably the best means of preserving principal while receiving a

specified rate of return

Income

However, the safest investments are also the ones that are likely to have the lowest rate of

income return or yield. Investors must inevitably sacrifice a degree of safety if they want to

increase their yields. This is the inverse relationship between safety and yield: as yield

increases, safety generally goes down, and vice versa.

Marketability / Liquidity

Many of the investments we have discussed are reasonably illiquid, which means they

cannot be immediately sold and easily converted into cash. Achieving a degree of liquidity,

however, requires the sacrifice of a certain level of income or potential for capital gains.

Tax Minimization

An investor may pursue certain investments in order to adopt tax minimization as part of his

or her investment strategy. A highly-paid executive, for example, may want to seek

investments with favorable tax treatment in order to lessen his or her overall income tax

burden.

Basis two decision of Investment The decision of investment is based on two things related to investment

1. Return

2. Risk

What is Return Return is the basic objective of investment which we divided under the heading of benefits

earlier. The gain or loss of a security in a particular period. The return consists of the income

and the capital gains relative on an investment. It is usually quoted as a percentage The

return can be calculated according to following:

Income Received + Price Change Return: -

Purchase Price of Asset

What is risk

Risk is the volatility in occurrence of an expected incident. The chance that an investment's actual return will be different than expected. This includes the possibility of losing some or all of the original investment. It is usually measured by calculating the standard deviation of the historical returns or average returns of a specific investment

CHAPTER -2

REVIEW OF LITRETURE

George H. Pendleton: Senator from Ohio sponsored the Civil Service Reform Act in 1883, which sought to implement a merit-based program in the federal government. Its principal tenets include:

Hiring employees by merit Receiving pay according to position, not personal characteristics Protection from political interference and dismissal via regime changes Government workers have an obligation to accountability (transparency)

Chester Barnard: taught an organization was the cooperation of human activity and to survive an organization needed to have efficiency and effectiveness. His definition of effectiveness: being able to accomplish the goals that were set and efficiency – if the goals are reached by the individuals of the organization then cooperation among them will continue.

Paul C. Light: discusses the Shadow Government and how it is used to make the Federal government appear smaller, even as the Federal government grows. The Shadow Government is made up of those entities that produce goods or services for the government under contracts, grants, or mandates.

Volcker Commission: also known as the National Commission on Public Service was established in 1989, to rebuild the federal civil service. The commission was established by

the United States Chairman of the Federal Reserve Paul A. Volcker. The main concern of the commission was morale because it was beginning to fall as were recruitment and retention among civil service employees and would soon become a crisis. This possible crisis was believed to be hindering the ability of the government to function effectively as the demand on the government began to grow.

CHAPTER-3 RESEARCH METHODOLOGY

MEANING OF RESEARCH: -Research in common parlance refers to a search for knowledge. And according to Redman

and Mory “systematized effort to gain new knowledge.” And some people consider research as movement, a movement from known to the unknown.

Thus Research is an original contribution to the existing stock of knowledge making for its advancement. It is the pursuit of truth with the help of study, Observation, comparison and experiment. In short, the search for knowledge through objective and systematic method of finding solution to a problem is research.

OBJECTIVES OF RESEARCH:-

The purpose of research is to discover answers to questions through the application of scientific procedures. The main aim of research is to find out the truth which is hidden and which has not been discovered as yet. Research objectives as falling into a number of following broad groupings.The objectives of study as follows :

1. To gain familiarity with a phenomenon or to achieve new insights into it (studies with this object in

view are termed as exploratory or formulative research studies).

2. To portray accurately the characteristics of a particular individual, situation or a group (studies with

this object in view are known as descriptive research studies).

1. To determine the frequency with which something occurs or with which it is associated with The

description is used for frequencies, averages and other statistical calculations. Often the best

approach, prior to writing descriptive research, is to conduct a survey investigation. Qualitative

research often has the aim of description and researchers may follow-up with examinations of why

the observations exist and what the implications of the findingssomething else ( studies with this

object in view are known as diagnostic research studies)

TYPE OF RESEARCH: -Our Research is a fact-finding research. So for the fact-finding we use Descriptive Research.

DESCRIPTIVE RESEARCH: -Descriptive research includes survey and fact-finding enquiries of different kinds. The major

purpose of descriptive research is description of the state of affairs, as it exists at present.

TYPE OF DATA:-The core finding of the study are based on the information collected through both primary

data & secondary data.

PROCEDURE IN COLLECTION OF DATA:-The information was collected from the investors with the help of a structured

questionnaire and also interviews were conducted with the brokers and officials of trading

or brokerage companies. And several books and web sites are use as a secondary source of

information.

SAMPLING DESIGN SAMPLING UNIT:-

The people are those who invest money in different investment alternatives.

SAMPLE SIZE:-

50 persons were visited for the purpose of the study

SAMPLING TECHNIQUE:-

In this study, the respondents were chosen through convenience & Judgment

sampling.

SAMPLE AREA:-

palampur

STATISTICAL TOOL:-Data collection through survey was analyzed with the help of simple % Tabular & graphic

method that includes Pie Charts. Correlation is also used to determine relationship between

variables.

.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 HRM in Public administration and corporative sector,Equity market and investment. This research is based on primary data and secondary data. T. 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 Palampur only.

RESEARCH METHODOLOGY

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.

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. : Structured Questionnaire.

Contact Method: Personal Interview. Research Instrument

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.

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.

CHAPTER -4 DATA ANALYSIS

DATA ANALYSISQues. Age

AGE CATEGORY FREQUENCY PERCENTAGE CUMULATIVE PERCENTAGE

18-23 Years 10 20 20

24-29 Years 17 34 54

30-35 Years 15 30 84

35 Years and above 8 16 100

TOTAL 50 100

Sales

18-23 Year24-29 Year30-35 Year35 and above

20 %

34 %30 %

16 %

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.

Ques. Educational qualifications

CATEGORY FREQUENCY PERCENTAGE CUMULATIVE PERCENTAGE

UNDER GRADUATE

13 26 26

GRADUATE 20 40 66

POST GRADUATE

17 34 100

TOTAL 50 100

Sales

UNDERGARDUATEGRADUATEPOST GRADUATE

26 %

40 %

34 %

I NTERPRETATION

From the table above it can be seen that.

26% respondents are Under graduate.

40% respondents are Graduate.

34% respondents are Post graduate.

Ques.1 HDFC bank has modern looking equipment.

SCALE FREQUENCY PERCENTAGE CUMULATIVE PERCENTAGE

STRONGLY DISAGREE

5 10 10

DISAGREE

25 50 60

UNCERTAIN 16 32 92

AGREE 4 8 100

TOTAL 50 100

Sales

STRONGLY DISAGREEDISAGREEUNCERTAINAGREE50 %

32 %

10 %8 %

INTERPRETATIONHDFC 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.

Q2.Do you invest in share market?

Yes No0

10

20

30

40

50

60

People

People

InterpretationDo you invest in share market.Here analysis shows that most of respondents agree with

the statement.Among total respondents 60% agree and 40 % disagree.

After analysis I found that majority of the respondents think that invest in share market.

Q3.Which company do you like invest in?

10

20

60

10

Company

PublicGovtPrivateSemi private

INTERPRETATION

Which company do you like to invest in. Here analysis show that most of the respondents disagreed with this statement. Among the total respondents 60% invest in private company , 20% in govt,and 10% in public and 10% in semi private. After analysis I found that majority of the respondents think that people invest in private company

Q4. Which one of these you invested your money?

8.2

10

20

15

40

5

Money

IPOEquityBondsCommodityMutual FundForex

INTERPRETATIONWhich one of these you like invested your money . Here analysis show that most of the respondents disagreed with this statement. Among the total respondents 40% invest in mutual fund , 15% in commodity,and 20% in bonds and 10% in equity,8.2% in ipo and 5%in Forex.. After analysis I found that majority of the respondents think that invest money in mutual fund or bonds.

Q5. Your purpose of investment.

Safty High Return Liquidity Tax Saving Any Other0

5

10

15

20

25

30

35

40

Purpose

Purpose

INTERPRETATIONYour purpose of investment.. Here analysis show that most of the respondents agreed with the High return.The purpose of people to investment is 40% agree with high return, 20% agree with safety, 15% with saving, 10% with liquidity. After analysis I found that majority of the respondents think that purpose of investment is high return

Q6. Give one basic purpose on which your investment decision based

Safety High Return Liquidity Tax saving Any other0

5

10

15

20

25

30

Series 1

Series 1

INTERPRETATIONGive one basic purpose on which your investment decision based. Here analysis show that most of the respondents agreed with safety. Among the total respondents 30% agree with safety , 20% with liquidity,20% in high return,20% in tax saving and 10% others.. After analysis I found that majority of the respondents think that purpose of investment is safetyQ7. √ following according to your preferred attribute on which you are willing to invest in these investment.

Investments SafetyHigh

Return Liquidity

Tax

Saving Others

IPO

Equity

Bonds

Commodity

Mutual Fund

Forex

Q8.what return do u expect from equity investment compared to other market

8.2

Return

HighMediumLow

Q9.What are the factors that influence your decision making investment

Broker Friends Institute0

1

2

3

4

5

6

7

8

9

Q10 Are you satisfied for HDFC bank services

Services

SatisfiedFullsatisfiedSemisatisfied

CHAPTER-6

FINDINGS OF THE REPORT

FINDINGS OF THE REPORT

The Reliability dimension of service quality is better as compared to empathy and tangibility. Still the score is low. For most services, customer‟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 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.

CHAPTER-7

CONCLUSION

CONCLUSIONBased 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. 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.

CHAPTER-8

RECOMMENDATIONS

RECOMMENDATIONS

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.

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.

CHAPTER-9

BIBLIOGRAPHY

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

CHAPTER -5

CONCLUSION :-

Organizations are coming to realize the bottom-line benefits of incorporating sustainability into their DNA. It’s beneficial for attraction and retention and it’s the right thing to do. HR is a key organizational leader and can take the lead or partner with other executives to work cross-functionally to integrate CSR objectives into how business gets conducted. HR practitioners can act as translators of the organization’s CSR commitment vertically and horizontally across departments. Most will find upon reading this report that they have many good practices underway. Many will find they have a new structure for their thinking they can apply practically in the workplace. Some will believe the current economic downturn will put these ideas on the backburner until the economy rebounds, while others think that organizations which abandon their CSR integration in the downturn will lose ground and breed cynicism in brighter times. Regardless of the point of view, all agree that effective HR leadership on CSR integration requires Board, CEO and executive commitment to be successful. Indeed, the roadmap is predicated on the assumption of

this top level commitment. However, more and more organizations are committing to sustainability and to embedding CSR into “all that we do”, so it is hoped the 10 steps provide some guidance as to how to go about doing this. The firm of the future is expected to have undergone significant transformation such that CSR no longer becomes managed as a separate deliverable, but is part of the experience of being an employee in an organization that lives its values. For human resource professionals embarking on CSR or deepening their CSR experience, this roadmap can help them understand their role in sustainability and CSR and how they can foster an environment that embeds a CSR ethic in “the way we do business.

Employee Satisfaction

Definition:Employee satisfaction is the terminology used to describe whether employees are

happy and contented and fulfilling their desires and needs at work. Many measures purport that employee satisfaction is a factor in employee motivation, employee goal achievement, and positive employee morale in the workplace.

Employee satisfaction, while generally a positive in your organization, can also be a downer if mediocre employees stay because they are satisfied with your work environment.

Factors contributing to employee satisfaction include treating employees with respect, providing regula remployee recognition, empowering employees, offering above industry-average benefits and compensation, providing employee perks and company activities, and positive management within a success framework of goals, measurements, and expectations.Employee satisfaction is often measured by anonymous employee satisfaction surveys administered periodically that gauge employee satisfaction. (I do not support these.) Employee satisfaction is looked at in areas such as:

management, understanding of mission and vision, empowerment, teamwork, communication, and coworker interaction.

The facets of employee satisfaction measured vary from company to company.

A second method used to measure employee satisfaction is meeting with small groups of employees and asking the same questions verbally. Depending on the culture of the company, either method can contribute knowledge about

Services and products offered by banks :-

Broad Classification of Products in a bank:The different products in a bank can be broadly classified into:

Retail Banking.

Trade Finance.

Treasury Operations.

Retail Banking and Trade finance operations are conducted at the branch level while the wholesale banking operations, which cover treasury operations, are at the hand office or a designated branch.

Retail Banking: Deposits

Loans, Cash Credit and Overdraft

Negotiating for Loans and advances

Remittances

Book-Keeping (maintaining all accounting records)

Receiving all kinds of bonds valuable for safe keeping

Trade Finance: Issuing and confirming of letter of credit.

Drawing, accepting, discounting, buying, selling, collecting of bills of exchange, promissory notes, drafts, bill of lading and other securities.

Treasury Operations: Buying and selling of bullion. Foreign exchange

Acquiring, holding, underwriting and dealing in shares, debentures, etc.

Purchasing and selling of bonds and securities on behalf of constituents.

The banks can also act as an agent of the Government or local authority. They insure, guarantee, underwrite, participate in managing and carrying out issue of shares, debentures, etc.

Apart from the above-mentioned functions of the bank, the bank provides a whole lot of other services like investment counseling for individuals, short-term funds management and portfolio management for individuals and companies. It undertakes the inward and outward remittances with reference to foreign exchange and collection of varied types for the Government.

Common Banking Products Available:Some of common available banking products are explained below:

1) Credit Card: Credit Card is “post paid” or “pay later” card that draws from a credit line-money made available by the card issuer (bank) and gives one a grace period to pay. If the amount is not paid full by the end of the period, one is charged interest. A credit card is nothing but a very small card containing a means of identification, such as a signature and a small photo. It authorizes the holder to change goods or services to his account, on which he is billed. The bank receives the bills from the merchants and pays on behalf of the card holder. These bills are assembled in the bank and the amount is paid to the bank by the card holder totally or by installments. The bank charges the customer a small amount for these services. The card holder need not have to carry money/cash with him when he travels or goes for purchasing. Credit cards have found wide spread acceptance in the ‘metros’ and big cities. Credit cards are joining popularity for online payments. The major players in the Credit Card market are the foreign banks and some big public sector banks like SBI and Bank of Baroda. India at present has about 3 million credit cards in circulation.2) Debit Cards: Debit Card is a “prepaid” or “pay now” card with some stored value. Debit Cards quickly debit or subtract money from one’s savings account, or if one were taking out cash. Every time a person uses the card, the merchant who in turn can get the money transferred to his account from the bank of the buyers, by debiting an exact amount of purchase from the card. To get a debit card along with a Personal Identification Number (PIN). When he makes a purchase, he enters this number on the shop’s PIN pad. When the card is swiped through the electronic terminal, it dials the acquiring bank system – either Master Card or Visa that validates the PIN and finds out from the issuing bank whether to accept or decline the transaction. 3) Automatic Teller Machine: The introduction of ATM’s has given the customers the facility of round the clock banking. The ATM’s are used by banks for making the customers dealing easier. ATM card is a device that allows customer who has an ATM card to perform routine banking transaction at any time without interacting with human teller. It provides exchange services. This service helps the customer to withdraw money even when the banks ate closed. This can be done by inserting the card in the ATM and entering the Personal Identification Number and secret Password.

ATM’s are currently becoming popular in India that enables the customer to withdraw their money 24 hours a day and 365 days. It provides the customers with the ability to withdraw or deposit funds, check account balances, transfer funds and check statement information. The advantages of ATM’s are many. It increases existing business and generates new business. It allows the customers.

To transfer money to and from accounts.

To view account information.

To order cash.

To receive cash.

Advantages of ATM’s:To the Customers

ATM’s provide 24 hrs., 7 days and 365 days a year service.

Service is quick and efficient

Privacy in transaction

Wider flexibility in place and time of withdrawals.

The transaction is completely secure – you need to key in Personal Identification Number (Unique number for every customer).

To Banks Alternative to extend banking hours.

Crowding at bank counters considerably reduced.

Alternative to new branches and to reduce operating expenses.

Relieves bank employees to focus an more analytical and innovative work.

Increased market penetration.

ATM’s can be installed anywhere like Airports, Railway Stations, Petrol Pumps, Big Business arcades, markets, etc. Hence, it gives easy access to the customers, for obtaining cash.

The ATM services provided first by the foreign banks like Citibank, Grind lays bank and now by many private and public sector banks in India like ICICI Bank, HDFC Bank, SBI, UTI Bank etc. The ICICI has launched ATM Services to its customers in all the Metropolitan Cities in India. By the end of 1990 Indian Private Banks and public sector banks have come up with their own ATM Network in the form of “SWADHAN”. Over the past year upto 44 banks in Mumbai, Vashi and Thane, have became a part of “SWADHAN” a system of shared payments networks, introduced by the Indian Bank Association (IBA).

4) E-Cheques: The e-cheques consists five primary facts. They are the consumers, the merchant, consumer’s bank the merchant’s bank and the e-mint and the clearing process. This cheaqing system uses the network services to issue and process payment that emulates real world chaquing. The payer issue a digital cheaques to the payee ant the entire transactions are done through internet. Electronic version of cheaques are issued, received and processed. A typical electronic cheque transaction takes place in the following manner:

The customer accesses the merchant server and the merchant server presents its goods to the customer.

The consumer selects the goods and purchases them by sending an e-cheque to the merchant.

The merchant validates the e-cheque with its bank for payment authorisation.

The merchant electronically forwards the e-cheque to its bank.

The merchant’s bank forwards the e-cheque to the clearing house for cashing.

The clearing house jointly works with the consumer’s bank clears the cheque and transfers the money to the merchant’s banks.

The merchant’s bank updates the merchant’s account.

The consumer’s bank updates the consumer’s account with the withdrawal information.

The e-chequing is a great boon to big corporate as well as small retailers. Most major banks accept e-cheques. Thus this system offers secure means of collecting payments, transferring value and managing cash flows.

5) Electronic Funds Transfer (EFT): Many modern banks have computerised their cheque handling process with computer networks and other electronic equipments. These banks are dispensing with the use of paper cheques. The system called electronic fund transfer (EFT) automatically transfers money from one account to another. This system facilitates speedier transfer of funds electronically from any branch to any other branch. In this system the sender and the receiver of funds may be located in different cities and may even bank with different banks. Funds transfer within the same city is also permitted. The scheme has been in operation since February 7, 1996, in India. The other important type of facility in the EFT system is automated clearing houses. These are the computer centers that handle the bills meant for deposits and the bills meant for payment. In big companies pay is not disbursed by issued cheques or issuing cash. The payment office directs the computer to credit an employee’s account with the person’s pay.6) Telebanking: Telebanking refers to banking on phone services.. a customer can access information about his/her account through a telephone call and by giving the coded Personal Identification Number (PIN) to the bank. Telebanking is extensively user friendly and effective in nature.

To get a particular work done through the bank, the users may leave his instructions in the form of message with bank.

Facility to stop payment on request. One can easily know about the cheque status.

Information on the current interest rates.

Information with regard to foreign exchange rates.

Request for a DD or pay order.

DeMat Account related services.

And other similar services.

5) Mobile Banking: A new revolution in the realm of e-banking is the emergence of mobile banking. On-line banking is now moving to the mobile world, giving everybody with a mobile phone access to real-time banking services, regardless of their location. But there is much more to mobile banking from just on-lie banking. It provides a new way to pick up information and interact with the banks to carry out the relevant banking business. The potential of mobile banking is limitless and is expected to be a big success. Booking and paying for travel and even tickets is also expected to be a growth area. According to this system, customer can access account details on mobile using the Short Messaging System (SMS) technology6 where select data is pushed to the mobile device. The wireless application protocol (WAP) technology, which will allow user to surf the net on their mobiles to access anything and everything. This is a very flexible way of transacting banking business. Already ICICI and HDFC banks have tied up cellular service provides such as Airtel, Orange, Sky Cell, etc. in Delhi and Mumbai to offer these mobile banking services to their customers.6) Internet Banking: Internet banking involves use of internet for delivery of banking products and services. With internet banking is now no longer confirmed to the branches where one has to approach the branch in person, to withdraw cash or deposits a cheque or request a statement of accounts. In internet banking, any inquiry or transaction is processed online without any reference to the branch (anywhere banking) at any time. The Internet Banking now is more of a normal rather than an exception due to the fact that it is the cheapest way of providing banking services. As indicated by McKinsey Quarterly research, presently traditional banking costs the banks, more than a dollar per person, ATM banking costs 27 cents and internet banking costs below 4 cents approximately. ICICI bank was the first one to offer Internet Banking in India.

Benefits of Internet Banking: Reduce the transaction costs of offering several banking services and diminishes the need

for longer numbers of expensive brick and mortar branches and staff.

Increase convenience for customers, since they can conduct many banking transaction 24 hours a day.

Increase customer loyalty.

Improve customer access.

Attract new customers.

Easy online application for all accounts, including personal loans and mortgages

Financial Transaction on the Internet: Electronic Cash: Companies are developing electronic replicas of all existing payment

system: cash, cheque, credit cards and coins. Automatic Payments: Utility companies, loans payments, and other businesses use on

automatic payment system with bills paid through direct withdrawal from a bank account. Direct Deposits: Earnings (or Government payments) automatically deposited into bank

accounts, saving time, effort and money. Stored Value Cards: Prepaid cards for telephone service, transit fares, highway tolls,

laundry service, library fees and school lunches. Point of Sale transactions: Acceptance of ATM/Cheque at retail stores and restaurants for

payment of goods and services. This system has made functioning of the stock Market very smooth and efficient.

Cyber Banking: It refers to banking through online services. Banks with web site “Cyber” branches allowed customers to check balances, pay bills, transfer funds, and apply for loans on the Internet.9) Demat: Demat is short for de-materialisation of shares. In short, Demat is a process where at the customer’s request the physical stock is converted into electronic entries in the depository system. In January 1998 SEBI (Securities and Exchange Board of India) initiated DEMAT ACCOUNTANCY System to regulate and to improve stock investing. As on date, to trade on shares it has become compulsory to have a share demat account and all trades take place through demat.How to Operate DEMAT ACCOUNT?One needs to open a Demat Account with any of the branches of the bank. After opening an account with any bank, by filling the demat request form one can handover the securities. The rest will be taken care by the bank and the customer will receive credit of shares as soon as it is confirmed by the Company/Register and Transfer Agent. There is no physical movement of share certification any more. Any buying or selling of shares is done via electronic transfers.

If the investor wants to sell his shares, he has to place an order with his broker and give a “Delivery Instruction” to his DP (Depository Participant). The DP will debit hi s account with the number of shares sold by him.

If one wants to buy shares, he has to inform his broker about his Depository Account Number so that the shares bought by him are credited in to his account.

Payment for the electronic shares bought or sold is to be made in the same way as in the case of physical securities employee satisfaction to managers and employees.

CHAPTER -8

REFERENCES :-

1. Data collected from websites:

www.google.com

www.fivepaise.com

www.moneycontrol.com

www.valuenotes.com

ANNEXURES1. QUESTIONNAIRE

Dear Sir/Madam,

Name: ……………………

State: ……………………

I am a student of “Sri Sai University Palampur” presently doing a project on “ HRM in Public

Administration and corporate Sector,Equity market and Investment”

I request you to kindly fill the questionnaire below and I assure you that the data generated shall be kept

confidential.

Q1.Do you invest in share market?

Ans. Yes( ) No( )

Q2.Which company do you like invest in?

Ans. Public( ) Govt.( ) Private( ) Semi private( )

Q3. Which one of these you invested your money?

Ans. IPO ( ) Equity ( ) Bonds ( )

Commodity ( ) Mutual Fund ( ) Forex ( )

Q4. Your purpose of investment.

Ans. Safety ( ) High Return ( ) Liquidity ( )Tax Saving ( )Any other :……………………

Q5. Give one basic purpose on which your investment decision based

Ans. Safety ( ) High Return ( ) Liquidity ( )

Tax Saving ( ) Any other :………………

Q6. √ following according to your preferred attribute on which you are willing to invest in these investment.

Investments SafetyHigh

Return Liquidity

Tax

Saving Others

IPO

Equity

Bonds

Commodity

Mutual Fund

Forex

Q7. √ following according to your perception about their Return

RETURN

Investments High Moderate Low

IPO

Equity

Bonds

Commodity

Mutual Fund

Forex

Q8.what return do u expect fromequity investment compared to other market

Hjgh Medium Low

Q9.What are the factors that influence your decissionin making investment

Broker Friends Institute

Q10 Are you satisfied for HDFC bank services

Satisfied fullsatisfied unsatisfied