SUMMER TRAINING REPORT ON

“A confirmation of SERVQUAL Model among customers of

HDFC BANK ”
AT
HDFC BANK

(KARNAL)

Submitted in the partial fulfillment for the Requirement of

Post Graduate Diploma in Management
(PGDM 2017-2019)
)(

SUBMITTED TO:
SUBMITTED BY:
Ms.Jyoti Kukreja Shubham Gambhir
(Internal Guide) 108/PGDM/KJ/2017
(2017-2019)
Mr.Ishant Arora
RM,HDFC BANK
(External Guide)

Jagannath International Management School

Kalkaji,New Delhi
 1

DECLARATION

I hereby declare that the Project report titled “A

confirmation of SERVQUAL Model among customers
of HDFC BANK” is my original work and it has not been
submitted elsewhere.

Shubham Gambhir
2
 CERTIFICATE FROM FACULTY GUIDE

This is to certify that Mr.SHUBHAM GAMBHIR of PGDM

has completed his summer training project on “A
confirmation of SERVQUAL Model among customers
of HDFC BANK”of his own. His work is up to my
satisfaction.

Ms. Jyoti Kukreja

(Internal Guide)

4
 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, “A confirmation of SERVQUAL Model among
customers of HDFC BANK ”.

I wish to express my gratitude to the Relationship

manager Mr.Ishant Arora of HDFC BANK, KARNAL 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
Ms. Jyoti Kukreja from JAGANNATH INTERNATIONAL
MANAGEMENT SCHOOL,KALKAJI 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.

Shubham Gambhir

5
 INDEX

CONTENTS PAGE
NO.

1. INTRODUCTION 7

2. COMPANY PROFILE 8

3. SERVICE QUALITY IN BANKS 17

4. RESEARCH OBJECTIVE 24

5. RESEARCH METHODOLOGY 27

6. DATA ANALYSIS 31

7. FINDINGS OF THE REPORT 59

8. CONCLUSION 60

9. RECOMMENDATIONS 61

10. BIBLIOGRAPHY 62

11. ANNEXURE: QUESTIONNAIRE 63

6
 INTRODUCTION OF BANKING

Service with a smile:

Today‟ s finicky banking customers will settle for nothing less. The
customer has come to realize somewhat belatedly that he is the king. 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 “A confirmation of SERVQUAL
Model among customers of HDFC BANK”.

7
COMPANY
PROFILE

8
The Housing Development Finance Corporation Limited (HDFC) was
amongst the first to receive an 'in principle' approval from the Reserve
Bank of India (RBI) to set up a bank in the private sector, as part of 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.

9
 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. HDFC Bank's business philosophy
is based on four core values - Operational Excellence, Customer Focus,
Product Leadership and People.

MISSION STATEMENT OF HDFC BANK


* World Class Indian Bank.
13

* Benchmarking against international standards.

* To build sound customer franchises across distinct businesses

* Best practices in terms of product offerings, technology,

service levels, risk management and
audit & compliance

VISION STATEMENT OF HDFC BANK

The HDFC Bank is committed to maintain the highest level of ethical

standards, professional integrity and regulatory compliance. HDFC
Bank‟ s business philosophy is based on four core values such as:-

1. Operational excellence.

2. Customer Focus.
10
3.Product leadership.

4. People.

The objective of the HDFC Bank is to provide its target market customers a
full range of financial products and banking services, giving the customer a
one-step window for all his/her requirements. The HDFC Bank plus and the
investment advisory services programs have been designed keeping in
mind needs of customers who seeks distinct financial solutions, information
and advice on various investment avenues.

BUSINESS STRATEGY


* Increasing market share in India‟s expanding banking

* Delivering high quality customer service

* Maintaining current high standards for asset quality

through disciplined credit risk management

* Develop innovative products and services that attract targeted

customers and address inefficiencies in the Indian
financial sector.

11
DISTRIBUTION NETWORK

HDFC Bank is headquartered in Mumbai. The Bank at present has an

enviable network of over 1229 branches spread over 444 cities across
India. All branches are linked on an online real-time basis. Customers in
over 120 locations are also serviced through Telephone Banking. The
Bank's expansion plans take into account the need to have a presence in
all major industrial and commercial centers where its corporate customers
are located as well as the need to build a strong retail customer base for
both deposits and loan products. Being a clearing/settlement bank to
various leading stock exchanges, the Bank has branches in the centers
where the NSE/BSE has a strong and active member base.

The Bank also has a network of about over 2526 networked ATMs across
these cities. Moreover, HDFC Bank's ATM network can be accessed by all
domestic and international Visa/MasterCard, Visa Electron/Maestro,
Plus/Cirrus and American Express Credit/Charge cardholders.

PROMOTER

HDFC is India's premier housing finance company and enjoys an

impeccable track record in India as well as in international markets. Since
its inception in 1977, the Corporation has maintained a consistent and
healthy growth in its operations to remain a market leader in mortgages. Its
outstanding loan portfolio covers well over a million dwelling units. HDFC
has developed significant expertise in retail mortgage loans to different
market segments and also has a large corporate client base for its housing
related credit facilities. With its experience in the financial markets, a
strong market reputation, large shareholder base and unique consumer
franchise, HDFC was ideally positioned to promote a bank in the Indian
environment.

12
MANAGEMENT

Mr. C.M. Vasudev has been appointed as the Chairman of the Bank with
effect from 6th July 2010 subject to the approval of the Reserve Bank of
India and the shareholders. Mr. Vasudev has been a Director of the Bank
since October 2006. A retired IAS officer, Mr. Vasudev has had an
illustrious career in the civil services and has held several key positions in
India and overseas, including Finance Secretary, Government of India,
Executive Director, World Bank and Government nominee on the Boards
of many companies in the financial sector.
The Managing Director, Mr. Aditya Puri, has been a professional banker
for over 25 years, and before joining HDFC Bank in 1994 was heading
Citibank's operations in Malaysia.
The Bank's Board of Directors is composed of eminent individuals with a
wealth of experience in public policy, administration, industry and
commercial banking. Senior executives representing HDFC are also on
the Board.
Senior banking professionals with substantial experience in India and
abroad head various businesses and functions and report to the
Managing Director. Given the professional expertise of the management
team and the overall focus on recruiting and retaining the best talent in the
industry, the bank believes that its people are a significant competitive
strength.

TECHNOLOGY
HDFC Bank operates in a highly automated environment in terms of
information technology and communication systems. All the bank's
branches have online connectivity, which enables the bank to offer
speedy funds transfer facilities to its customers. Multi-branch access is
also provided to retail customers through the branch network and
Automated Teller(ATMs).
The Bank has made substantial efforts and investments in acquiring the
best technology available internationally, to build the infrastructure for a
world class bank. The Bank's business is supported by scalable and
robust systems which ensure that our clients always get the finest
services we offer.

13
QUALITY POLICY

SECURITY: The bank provides long term financial security to their policy. The
bank does this by offering life insurance and pension products.

TRUST: The bank appreciates the trust placed by their policy holders in the
bank. Hence, it will aim to manage their investments very carefully and live up to
this trust.

INNOVATION: Recognizing the different needs of our customers, the bank

offers a range of innovative products to meet these needs.

INTEGRITY

CUSTOMER CENTRIC

PEOPLE CARE “ONE FOR ALL AND ALL FOR ONE”

TEAM WORK

JOY AND SIMPLICITY

14
BUSINESS

HDFC Bank offers a wide range of commercial and transactional banking

services and treasury products to wholesale and retail customers. The
bank has three key business segments.

Wholesale Banking Services The Bank's target market ranges from

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

Retail Banking Services

The objective of the Retail Bank is to provide its target market customers
a full range of financial products and banking services, giving the
customer a one-stop window for all his/her banking requirements. The
products are backed by world-class service and delivered to customers
through the growing branch network, as well as through alternative
delivery channels like ATMs, Phone Banking, Net Banking and Mobile
Banking.
The HDFC Bank Preferred program for high net worth individuals, the
HDFC Bank Plus and the Investment Advisory Services programs have
been designed keeping in mind needs of customers who seek distinct
financial solutions, information and advice on various investment
avenues.
15
It is also a leading provider of Depository Participant (DP) services for retail
customers, providing customers the facility to hold their investments in
electronic form. HDFC Bank was the first bank in India to launch an
International Debit Card in association with VISA (VISA Electron) and
issues the Mastercard Maestro debit card as well. The Bank launched its
credit card business in late 2001. By March 2010, the bank had a total card
base (debit and credit cards) of over 14 million. The Bank is also one of the
leading players in the “merchant acquiring” business with over 90,000
Point-of-sale (POS) terminals for debit / credit cards acceptance at
merchant establishments. The Bank is well positioned as a leader in
various net based B2C opportunities including a wide range of internet
banking services for Fixed Deposits, Loans, Bill Payments, etc.

Treasury

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

16
SERVICE QUALITY
IN
BANKS

17
In the days of intense competition, the banks are no different from any
other consumer marketing company. It has become essential for the
service firms in general and banks in particular to identify what the
customer's requirements are and how those customer requirements can
be met effectively. In the days where product and price differences are
blurred, superior service by the service provider is the only differentiator
left before the banks to attract, retain and partner with the customers.
Superior service quality enables a firm to differentiate itself from its
competition, gain a sustainable competitive advantage, and enhance
efficiency .The benefits of service quality include increased customer
satisfaction, improved customer retention, positive word of mouth, reduced
staff turnover, decreased operating costs, enlarged market share,
increased profitability, and improved financial performance. The construct
of service quality has therefore been a subject of great interest to service
marketing researchers.
Service quality has been defined by various experts in various ways as:
'Service Quality is the difference between customers' expectations for
service performance prior to the service encounter and their perceptions of
the service received.' According to Gefan „Service quality is the subjective
comparison that customers make between the qualities of service that they
want to receive and what they actually get.' Parasuraman says, 'Service
quality is determined by the differences between customer's expectations
of services provider's performance and their evaluation of the services they
received. Service quality is 'the delivery of excellent or superior service
relative to customer expectations‟ . Service quality is recognized as a
multidimensional construct. While the number of dimensions often varies
from researcher to researcher, there is some consensus that service quality
consists of three primary aspects: outcome quality, interaction quality, and
physical service environment quality. Outcome quality refers to the
customer's assessment of the core service which is the prime motivating
factor for obtaining the services (e.g. money received from ATM).
Interaction quality refers to the customer's assessment of the service
delivery process, which is typically rendered via a physical interface
between the service provider, in person, or via technical equipment, and
the customer. It includes, for instance, the consumer's evaluation of the
attitude of the service providing staff.

18
The most popular dimensions of service quality--features five
dimensions: tangibles, reliability, responsiveness, empathy, and
assurance. The tangibles dimension corresponds to the aforementioned
physical environment aspect, the reliability dimension corresponds to the
service outcome aspect, and the remaining three represent aspects of
interaction quality. Both the costs and the revenue of firms are affected by
repeat purchases, positive word- of-mouth recommendation, and customer
feedback. Moreover, there is strong evidence that service quality has
either a direct influence on the behavioral intentions of customers and/or
an indirect influence on such intentions, mediated through customer
satisfaction. RATER is an instrument that might be used to define and
measure banking service quality and to create useful quality-assessment
tools.

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

1. It is the first approach to add and mix the customers‟ religious beliefs
and cultural values with other quality dimensions.

2. It provides for multi-faced analysis of customer satisfaction.

3. It links quality with customers‟ satisfaction and service encounter.

4. It provides information at several levels, already organized into

meaningful groupings.

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

meet customers‟ needs.

6. It is empirically grounded, systematic and well documented.

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

19
 RESPONSIVENES

TANGIBILITY RELIABILITY

EMPATHY ASSURANCE

DIMENSIONS OF SERVICE
QUALITY

20
DIMENSIONS OF SERVICE QUALITY

TANGIBILITY: This dimension deal with modern looking equipments and

visual appealing part of banks.

RELIABILITY: This dimension has a direct positive effect on perceived

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

RESPONSIVENESS: Customers expect that the banks must respond

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

ASSURANCE: Customer expects that the bank must be secured and the
behavior of the employees must be encouraging.

EMPATHY: individual attention, customized service and convenient

banking hours are very much important in today‟ s service.

In order to achieve better understanding of service quality in banking

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

Banking was in the sector featuring medium goods and higher customer
producer interactions, since in banking, consumers and service providers
interact personally and the use of goods is at a medium level. Hence, in
banking, where there are high customer-producer interactions, the quality of
21
service is determined to a large extent by the skills and attitudes of
people producing the service.

In the case of services, because customers are often either direct

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

Another important service quality factor, competence, is defined by

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

22
However, companies fare best when they prevent service problems
altogether and fare worst when service problems occur and the company
either ignores them or does not resolve them to the customer‟ s
satisfaction.

Performing the service accurately is perhaps the most important factor in

service quality excellence. The cost of performing the service
inaccurately includes not only the cost of redoing the service but also the
cost associated with negative word-of-mouth generated by displeased
customers. In case of services, the factory is the field. Again, services
are intangible and hence the criteria for flawless services are more
subjective than the criteria for defect-free tangible goods. Hence for most
services, customers‟ perceptions of whether the service has been
performed correctly, and not provider-established criteria, are the major
determinants of reliability.

The service quality factor tangible is defined by whether the physical

facilities and materials associated with the service are visually appealing at
the bank. These are all factors that customers notice before or upon
entering the bank. Such visual factors help consumers form their initial
impressions. A crucial challenge in service marketing is that customers
cannot see a service but can see the various tangibles associated with it -
all these tangibles, the service facilities, equipment and communication
materials are clues about the intangible service. If unmanaged, these clues
can send to the customer‟ s wrong messages about the service and render
ineffective the marketing strategy of the company. On the other hand,
improving quality through tangibles means attention to the smallest details
that competitors might consider trivial. Yet, these visible details can add up
for customers and signal a message of caring and competence.

Customers may reveal new aspects of service quality in banking that are
important to them, and these would have to be incorporated in the scale
so as to further explore the concept of service quality in the banking
arena.

23
RESEARCH OBJECTIVE

AND

RESEARCH

METHODOLOGY
24
RESEARCH OBJECTIVE

The objective of the study is as follows:

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


To find out the level of perception of the customers from the service quality
offered by the banks.


To know which service quality dimension of the bank is performing well.


To identify which dimension of service quality needs improvement so that the
quality of service of HDFC banks is enhanced.

25
IMPORTANCE AND SCOPE OF THE STUDY

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

SCOPE OF STUDY

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

26
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 15
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 and yahoo.

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.

27
RESEARCH SAMPLE

SAMPLING PLAN:

Since it is not possible to study whole universe, it becomes

necessary to take sample from the universe to know about its
characteristics.


Sampling Units: Customers of HDFC bank


Sample Technique: Random Sampling.


Research Instrument: Structured Questionnaire.


Contact Method: Personal Interview.

28
SAMPLE SIZE:

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

DATA COLLECTION TOOL

1. Strongly disagree

2. Disagree

3. Neither agree nor disagree

4. Agree

5. Strongly agree

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 15 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.

29
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.

In our study we have included 50 customers of bank because of time

limit.

30
DATA

ANALYSIS
31
 Ques. 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

20 %
16 %
18-23 Year

30 % 24-29 Year
30-35 Year
34 % 35 and above

32
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
GRADUATE 13 26 26

UNDER 20 40 66
GRADUATE

POST 17 34 100
GRADUATE

50 100
TOTAL

33
 Sales

26 %
34 % UNDERGARDUATE
GRADUATE
POST GRADUATE

40 %

INTERPRETATION

From the table above it can be seen that.


26% respondents are Under graduate.

40% respondents are Graduate.

34% respondents are Post graduate.

34
TANGIBILITY DIMENSION OF SERVICE
QUALITY (Questions1 to 4):

Physical facilities, equipments and appearance of personnel

Ques.1 HDFC bank has modern looking equipment .

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

STRONGLY 5 10 10
DISAGREE

DISAGREE 25 50 60

UNCERTAIN 16 32 92

AGREE 4 8 100

TOTAL 50 100

Sales

8 % 10 %
STRONGLY DISAGREE
32 % DISAGREE

50 % UNCERTAIN AGREE

35
INTERPRETATION

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

Ques.2 The bank's physical features are visually

appealing.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

DISAGREE 4 8 8

UNCERTAIN 29 58 66

AGREE 17 34 100

TOTAL 50 100
36
 Sales

8%
34 %
DISAGREE
UNCERTAIN

58 % AGREE

INTERPRETATION

HDFC bank‟ s physical facilities are visually appealing. From this

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

37
Ques.3 The bank's reception desk employees are
neat appearing.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

DISAGREE 5 10 10

UNCERTAIN 21 42 52

AGREE 18 36 88

STRONGLY AGREE 6 12 100

TOTAL 50 100

Sales

10 %
12 %
DISAGREE
36 % 42 % UNCERTAIN
AGREE
STRONGY AGREE

38
INTERPRETATION

HDFC bank‟ s employees appear neat. Here analysis shows that majority
were neutral. Among the total respondent 21 respondents were neutral, 18
people agreed and 6 respondents strongly agreed. The rest disagreed.
From analysis I found that some respondents agreed with this statement
but most of the respondents think the employees of the HDFC bank appear
neat.

Ques.4 Materials associated with the service

(such as pamphlets or statements) are visually
appealing at the bank.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

DISAGREE 7 14 14

UNCERTAIN 22 44 58

AGREE 18 36 94
STRONGLY 3 6 100
AGREE

TOTAL 50 100

39
 Sales

6%
14 %
DISAGREE
36 % UNCERTAIN
AGREE
44 % STRONGLY

INTERPRETATION

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

40
RELIABILITY DIMENSION OF SERVICE QUALITY (Questions 5
to 7):

Ability to perform the promised service dependably and accurately

Ques.5 When the bank promises to do something by a

certain time, it does so.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

STRONGLY 2 4 4
DISAGREE

DISAGREE 26 52 56

UNCERTAIN 5 10 66

AGREE 14 28 94

STRONGLY AGREE 3 6 100

TOTAL 50 100

41
 Sales

STRONGLY DISAGREE
DISAGREE
UNCERTAIN
AGREE
STRONGLY AGREE

INTERPRETATION

My sample size was 50. Here analysis shows that among the total
respondents 26 respondents disagreed and 14 respondents agreed with
this question. Also I found that 5 people were neutral and 2 people strongly
disagreed. Hence I concluded that majority of them disagreed that the
bank when promises to do something by certain time, it does so.

42
Ques. 6 When you have a problem, the bank shows
a sincere interest in solving it.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

DISAGREE 3 6 6

UNCERTAIN 14 28 34

AGREE 26 52 86

STRONGLY AGREE 7 14 100

TOTAL 50 100

Sales

6%
14 %
28 %
DISAGREE
UNCERTAIN
AGREE
52 % STRONGLY AGREE

43
INTERPRETATION

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

Ques.7 The bank performs the service right the first

time.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

STRONGLY 2 4 4
DISAGREE

DISAGREE 8 16 20

UNCERTAIN 17 34 54

AGREE 17 34 88

STRONGLY AGREE 6 12 100

TOTAL 50 100
44
 Sales

4%
16%
34% STRONGLY DISAGREE
DISAGREE
AGREE
34% STRONGLY AGREE
12% UNCERTAIN

INTERPRETATION

Total sample size was 50. Here analysis shows that among the total
respondents 17 people agreed with this statement. They think that HDFC
bank performs the services right the first time. 6 people strongly agreed
with this statement. Also 17 people were neutral and the rest of the
respondents disagreed and strongly disagreed.
45
RESPONSIVENESS DIMENSION OF
SERVICE QUALITY (Question 8 to 11):

Willingness to help customers and provide prompt services

Ques. 8 Employees in the bank tell you exactly

when the services will be performed.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

STRONGLY 6 12 12
DISAGREE

DISAGREE 8 16 28

UNCERTAIN 13 26 54

AGREE 18 36 90

STRONGLY AGREE 5 10 100

TOTAL 50 100

46
 Sales

12%

36% STRONGLY DISAGREE

DISAGREE
UNCERTAIN
26% STRONGLY AGREE
10% AGREE

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

47
Ques. 9 Employees in the bank give you prompt
service.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

DISAGREE 5 10 10

UNCERTAIN 16 32 42

AGREE 27 54 96

STRONGLY AGREE 2 4 100

TOTAL 50 100

Sales

4%
10%
54% 32% DISAGREE
UNCERTAIN
AGREE
STRONGLY AGREE

48
INTERPRETATION

Most of the respondents agreed with this statement. According to my

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

Ques.10 Employees in the bank are always willing

to help you

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

UNCERTAIN 12 24 24

AGREE 29 58 82

STRONGLY AGREE 9 18 100

TOTAL 50 100

.
49
 Sales

18% 24%
UNCERTAIN
AGREE

58% STRONGLY AGREE

INTERPRETATION

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

50
Ques.11 Employees in the bank are never too
busy to respond to your request.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

DISAGREE 1 2 2

UNCERTAIN 11 22 24

AGREE 27 54 78

STRONGLY AGREE 11 22 100

TOTAL 50 100

Sales

22% 22%

DISAGREE
UNCERTAIN
AGREE
54%
STRONGLY AGREE

51
INTERPRETATION

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

ASSURANCE DIMENSION OF SERVICE

QUALITY (Question 12 to 15):

Knowledge and courtesy of employees and their ability to

inspire trust and confidence

Ques.12 The employees of the bank are trustworthy.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

DISAGREE 4 8 8

UNCERTAIN 13 26 34

AGREE 28 56 90

STRONGLY AGREE 5 10 100

TOTAL 50 100

52
 Sales

10% 8%
26%
DISAGREE
56%
UNCERTAIN
AGREE
STRONGLY AGREE

INTERPRETATION

The employees of the bank are trustworthy. According to my findings, 54%

respondents agreed that employees at HDFC bank are trustworthy. 13%
respondents were neutral and 4% respondents disagreed with this statement.

53
Ques.13 The behavior of employees in the bank
instills confidence in you.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

DISAGREE 28 56 56

UNCERTAIN 4 8 64

AGREE 13 26 90

STRONGLY AGREE 5 10 100

TOTAL 50 100

Sales

10%
56%
26% DISAGREE
UNCERTAIN
AGREE
8% STRONGLY AGREE

54
INTERPRETATION

The behavior of employees in HDFC bank instills confidence in you. Here

analysis shows that most of the people disagreed. Among the total
respondents 28 respondents disagreed, 13 agreed and 5 strongly agreed.
There was no respondent who strongly disagreed. This means 56%
respondent disagreed with this statement.

Ques.14 You feel safe in your transactions

with the bank.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

DISAGREE 5 10 10

UNCERTAIN 16 32 42

AGREE 23 46 88

STRONGLY AGREE 6 12 100

TOTAL 50 100

55
 Sales

10%
12%
46%
32% 1st Qtr
2nd Qtr

3rd Qtr
4th Qtr

INTERPRETATION

With this statement most of the respondents agreed. Among the total
respondents 23 agreed with this statement and 6 strongly agreed. 32%
respondents were neutral and 10% respondents disagreed. But there no
one who strongly disagreed.

56
Ques.15 Employees in the bank have the
knowledge to answer your questions.

SCALE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE

DISAGREE 2 4 4

UNCERTAIN 9 18 22

AGREE 26 52 74

STRONGLY AGREE 13 26 100

TOTAL 50 100

Sales

4%
18%
26%
DISAGREE
UNCERTAIN
52% AGREE
STRONGLY AGREE

57
INTERPRETATION

From my analysis I found that 54% respondents agreed that employees

of HDFC bank have complete knowledge to answer their questions.
26% respondents strongly agreed to this statement and only 4%
disagreed. 18% neither agreed nor disagreed .
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.

59
CONCLUSION

Based on the study conducted it can be concluded that responsiveness,

assurance and reliability are the critical dimensions of service quality of
HDFC bank and they are directly related to overall service quality. The
factors that may delight customers tend to be concerned more with the
intangible nature of the service, commitment, attentiveness, friendliness,
care, and courtesy.
The employees give prompt services, always are ready to answer
the questions and are trustworthy. The main sources of dissatisfaction
appear to be cleanliness, up to date technology modern equipments, and
neatly dressed up employees. The Tangibility dimension of service quality
of HDFC bank is highly disappointing and serious steps are needed to be
taken to enhance this dimension. Customers of the bank are dissatisfied
with the empathy dimension. To satisfy these customers, the management
can take some attempts, noted earlier as recommendations.
The study brings about the areas which require urgent attention
of the employees, the management, and the policy makers of the industry.
These are areas in which customers are hugely dissatisfied with the
services of the banks against their expectation. 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.

60
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.

61
BIBLIOGRAPHY

References

Kotler Philip, marketing management,

Malhotra K. Naresh, marketing research (An applied orientation), Research
design, (Prentice hall of India pvt)

Zeithmal V. A., Grembler D.D., Bitner M.j., and Pandit A.: Service
Marketing Integrated customer Focus across the Firm”
M.K. Rampal : Service Marketing

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

62
ANNEXURE

QUESTIONNAIRE

Respected Sir/Madam
I am student of JAGANNATH INTERNATIONAL
MANAGEMENT SCHOOL,KALKAJI, conducting a survey on “A
confirmation of SERVQUAL among customers of HDFC
BANK”. The following statements relate to your feelings about
the HDFC bank. Please show the extent to which you believe
HDFC bank has the feature described in the statement. I request
you to the option which in your opinion are believed to be true.

Name:
Age:
Educational Qualifications

Strongly Disagree Neither Agree Strongly

QUESTIONS Disagree agreeNor Agree
disagree

1.HDFC bank has modern looking

equipment.

2. The bank's physical features are visually

Appealing

3. The bank's reception desk employees are

neat appearing.

4. Materials associated with the service (such

as pamphlets or statements) are visually
appealing at the bank.

5. When the bank promises to do something

by a certain time, it does so.

63
6. When you have a problem, the bank
shows a sincere interest in solving it.

7. The bank performs the service right the

first time.

8. Employees in the bank tell you exactly

when the services will be performed.

9. Employees in the bank give you prompt

service.

10. Employees in the bank are always

willing to help you.

11. Employees in the bank are never too

busy to respond to your request.

12. The employees of the bank are

trustworthy.

13. The behavior of employees in the bank

instills confidence in you.

14. You feel safe in your transactions with

the bank.

15. Employees in the bank have the

knowledge to answer your questions.

64