An Online Peer Reviewed / Refereed Journal

Volume 2 | Issue 8 | August 2024

ISSN: 2583-973X (Online)
Website: www.theacademic.in

An Analysis of Customer Satisfaction with SBI and HDFC Bank

1
Vasudeva D.M & 2Rajesh Naik
1
Research Scholar, DOSR In Commerce, Tumkur University Tumkur, Karnataka
2
Research Scholar, DOSR in Commerce, Tumkur University, Tumkur

ARTICLE DETAILS ABSTRACT

Research Paper The three fundamental types of banking in India are commercial banks,
nationalised banks, and specialised financial organisations. The RBI
Keywords:
operates as a centralised organisation that keeps an eye out for systemic
Public Sector Banks
inconsistencies and abnormalities. Public sector banks or nationalised
(PSBS), Private Sector
banks have grown significantly in prominence since the nationalisation
Banks, Financial
of banks. Slow-moving public sector banks have been forced to adopt a
Performance, Banking
more assertive strategy in order to become more customer-focused.
Sector
The purpose of this survey is to find out which banks in the public and
private sectors people prefer. to ascertain which facility has the greatest
influence on a customer's choice of bank to compare the many services
these banks provide. to increase knowledge of the bank's many
offerings.

INTRODUCTION
From a sluggish commercial institution, Indian banking has evolved into a very proactive and dynamic
one. A significant amount of economic and liberalisation reforms have made it possible for banks to
pursue fresh commercial prospects as opposed to obtaining funding from more conventional sources,
greatly facilitating this transition. With 30 banking institutions responsible for roughly 60% of deposits
and 50% of advances, banking in India is incredibly dispersed. Indian nationalised banks continue to be
the leading lenders in the economy due to their size and extensive networks, which supports robust

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 The Academic Volume 2 | Issue 8 | August 2024
deposit mobilisation. The three fundamental types of banking in India are commercial banks,
nationalised banks, and specialised financial organisations.

This paper compares two separate bank sectors to show you the facilities and the differences between
the services provided and to increase your awareness of the wide range of services that banks offer.

The following banks have been the subject of the surveys:

1. SBI
2. HDFC

LITERATURE REVIEW

Denise K. Conroy: According to him, a variety of elements, such as the type of customer, service
delivery, quality, and, in the case of the public sector, the extent of consumer sovereignty, might
influence how findings are interpreted. He seeks to construct customer satisfaction metrics in his paper,
"Customer satisfaction measures in the public sector: what do they tell us?".

Dawn Iacobucci, Amy Ostrom, Kent Grayson: presents two research that investigate whether quality
and satisfaction have separate causes at the outset, separate effects at the outset, or both (that is, whether
they should be viewed as separate constructs or as a single construct). They carry out this in their study,
"Distinguishing Customer Satisfaction and Service Quality: The Voice of the Consumer."

Fulwari A.A: According to "Concentration and Competition in the Indian Banking Sector: A Bank
Group wise study," different banking groups compete with one another by implementing aggressive
pricing and product strategies in an effort to increase their market share.

S. Gurusamy (2009): The pension fund is one of the primary factors that has a significant impact on how
a nation's financial system is shaped. The pension fund is a fund that helps a nation's social security
programmes develop. The fund aids in the growth of a nation's social security system. For the purpose of
paying retirement benefits, private businesses, municipalities, or unions establish a fund. Pension plans
are made to alleviate poverty and smooth out spending, among other things. Pension funds serve a larger
purpose than just compensating employees for their devoted previous service.

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RESEARCH METHODOLOGY

This section explains the methods for collecting data, the sampling plan, the investigative instruments,
the questionnaire's creation and testing, and the study's constraints. The study requires data from two
separate sources: the primary source and the secondary source. Primary data is gathered using
modified and reliable structured questioners, and secondary data is gathered from journals,
newspapers, and websites.
DATA SOURCE:

primary data : Questionnaires were used to collect primary data

Secondary data: Secondary information acquired from a variety of publications, including books,
newspapers, magazines, journals, and the internet

DATA ANALYSIS AND INTERPRETATION

The analysis of the financial services provided by SBI and HDFC Bank is the main goal of this section
of the study. Furthermore, the survey was conducted at every branch of Tumkur..

1. Comparative analysis of the key factors influencing the decision to use a specific bank

Factors SBI HDFC

I bank with the sane bank using a regular 11 04
account.
The bank's brand 5 5
The exceptional support provided by this bank 6 11
Debit Card Services 6 6
Mobile Banking 6 11
Location advantages 5 6

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 The Academic Volume 2 | Issue 8 | August 2024

12
10
8
6
4
2 SBI
0 HDFC

People have been seen to choose SBI more because it offers traditional bank accounts, Debit card
services , and mobile banking services all under one roof. People also select HDFC because of the
bank's location advantage, services, and brand name.

2. An analysis of the differences between SBI and HDFC bank clients' account facilities

FACILITY SBI HDFC

SB A/C 19 20

CA A/C 6 6

FD A/C 11 7

NRI A/C 0 1

50

40

30
HDFC
20
SBI
10

0
SB A/C CA A/C FD A/C NRI A/C

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 The Academic Volume 2 | Issue 8 | August 2024

Customers are seen to like SBI over HDFC bank when it comes to fixed deposits. Additionally, they
favour HDFC Bank over SBI for current, savings, and NRI accounts.

3 An analysis that compares the length of time that clients have dealt with SBI and HDFC banks

YEAR SBI HDFC

Less than 2 year 6 8
2to 3 year 13 10
3 to 6 years 8 12
More than 6 years 10 5

14
2to 3 year, 13
12 3 to 6 years, 12
More than 6
10 2to 3 year, 10
years, 10
Less than 2
8 3 to 6 years, 8
year, 8
Less than 2
6 More than 6
year, 6
4 years, 5

2
0
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5

4. Comparative analysis of the factors that influence customers' decision to visit a bank branch

REASONS SBI HDFC

To Make a deposit 14 17
To get a device for investment option 2 3
To inquire about a balance 7 5
To withdraw cash 12 10

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Customers have been seen to visit SBI Bank regularly for cash withdrawals and to get investment
advice, balance inquiries, and deposit enquiries from HDFC Bank.

5. Comparative study of most satisfying facility offered by them

FACILITY SBI HDFC

ATM 13 10
loan 7 4
Early cheque clearance 2 8
Preparation of drafts 3 2
Interest package 3 3
Net banking 3 5
UPI 4 3

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Comparative study of most satisfying

facility offered by them
SBI HDFC

10 4 2 3 5 3
8
13 7 3 3 3 4
2

Comparative analysis It has been observed that customers are more satisfied with SBI's phone banking,
interest package, lending, and ATM services. HDFC clients have also expressed satisfaction with the net
baking and early check clearance services. of their most satisfying facilities

6. Customers want to shift to another bank if they are provided with better service

CHANGE SBI HDFC

YES, 7 8
NO, 28 27

30 28
27

25

20
YES
15
NO

10 8
7

0
SBI HDFC

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It has been noted that the majority of both banks' clients are unwilling to switch banks in search of better
offerings.

7. A comparison of the customers overall satisfaction

SATISFCTION SBI HDFC

VERY EXCELLENT 7 8

VERY GOOD 7 11

GOOD 19 7

AVERAGE 2 4

BELOWAVERAGE 1 2

30

25
7
20

15
11
10 8 HDFC
SBI
5
4
2
0

It is observed that the majority of SBI clients have satisfactory ratings for the bank's services, and the
majority of HDFC customers rated the bank's services favourably to average.

SUGESSTIONS AND ASSUMPTIONS

SUGESSTIONS

• Customers of HDFC Bank and SBI Bank have proposed that the banks open a branch in an industrial
location, such as a focal point.
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• Employees ought to be more accommodating to clients.
• Clients were unaware of the services and the range of fees they would need to pay. As a result, banks
ought to make an effort to provide their current clients with additional information.

ASSUMPTIONS

The project report is predicated on consumer preferences and satisfaction levels with SBI and HDFC
banks. We learn from the experiment that while clients greatly value both banks, they have quite varied
preferences when it comes to these banks' services. The project's underlying presumptions are as
follows:

1. The survey's scope is restricted to Tumkur City. It could have resulted in a different city.
2. The survey's sample size is limited to 70 respondents. Of them, 35 questionnaires were
completed by SBI customers and 35 by HDFC bank customers.

REFERENCE:

1. Goyal, K. A., & Joshi, V. (2012). Impact of merger on stress level of employees (A case
study of Erstwhile Bank of Rajasthan Ltd.). International Journal of Business Research
and Management (IJBRM), 3(5), 247.

2. Hema, M. K., ArunRenganathan, R. R., Nanjundaswamy, S., Karthik, C. S., Mohammed,

Y. H. I., Alghamdi, S., ... & Mallu, P. (2020). N- (4-bromobenzylidene)-2, 3-dihydrobenzo
[b][1, 4] dioxin-6-amine: Synthesis, crystal structure, docking and in-vitro
3. Inhibition of PLA2. Journal of Molecular Structure, 1218, 128441.

4. Tamragundi, A. N., & Devarajappa, S. (2016). Impact of mergers on Indian Banking

Sector: A comparative study of Public and Private Sector merged Banks. International
Journal of Research in Management, Social Sciences & Technology, 13(13), 1-18.

5. Mubarak, Mohammed. (2021). "Recent Mergers in Banking Sector -An Indian Scenario".

6. https://www.sbi.in/shareholders-corner/annual-reports

7. Mubarak, Mohammed. (2021). "Recent Mergers in Banking Sector -An Indian Scenario".

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