Market Research….

PROBLEM DEFINITION/OBJECTIVE

Primary objective:
To study the perception of customers’ about HDFC Bank via intra products comparison
& How HDFC Bank differentiates its products and services.
Secondary objective:
1. To do a comparative study of various attributes of HDFC Bank products and services.
2. To study the loop holes if any of HDFC BANK.

RESEARCH METHODOLOGY

I) Research Design: Definition "A research design is the arrangement of condition for collection
and analysis of data in a manner that to combine relevance to research purpose with economy in
procedure”. The research design helps the researcher organize his ideas in a form whereby it will
be possible for him/her to look for flaws and inadequacies.

II) Objective of the Project:

The major objectives of the research study are
 Examine the psychographics of potential HDFC Bank users and non users
 Prove the perception of customers towards the commercial banks.
 To judge awareness level HDFC Bank products & services, amongst people.
 To find out the customer expectations from HDFC Bank.

III) Sources of Primary and Secondary Data

One major aim of this project was to analyze the competition on retail banking market with
respect to HDFC and their products & offerings. Therefore I had to gain knowledge about the
different products of its products and their various functionalities with respect to HDFC Bank
and how the other nabks are doing well in the same aspect. In order to accumulate this
knowledge. I had to go through a lot of secondary data namely ( Indian banking System)
HDFC Banks' Annual Report and products & services of HDFC bank collected from internet.
The only way this project could have been done was' by collecting primary data from the
common man For this purpose a detailed structured questionnaire was made and tested before
being put to use.

IV) Sampling Design

a) Target Segment: - Those customers who are the users of HDFC Bank especially corporates.
b) Time boundary: 2nd May 2008 to 30th June [Link] these people can be met only at offices,
Banks, ATMs and shopping complex during bank working hours, I took their interviews from
10. 00 AM to 6. 00 PM .on weekdays.
C) Characteristics: - To know the perception of customers for using HDFC Bank products &
services
d) Environmental condition: Feasible in all possible economic scenarios.
e) Tools & Techniques: - SPSS package & Excel Sheet.
f) Who should be interviewed: -Major concern was to interview the right person, at the right
time and the right place.
g) Demographics of Respondents:-
Age : (20-50+) years
Occupations : Student or business or service or others
Sex : Male or Female
Marital Status : Married or Single

V). Sampling method

Sample size 101
Data
I analysis….

DATA ANALYSIS & OBSERVATION

FINDINGS:
Question no 1: How long have you been using a product of HDFC?

Output

Statistics
 N Valid 99
Missing 2
Mean 3.17
Median 2.00
Mode 1
Std. Deviation 2.511

Frequen Valid Cumulative

cy Percent Percent Percent
Valid <6
7 6.9 7.1 7.1
months
1 26 25.7 26.3 33.3
2 17 16.8 17.2 50.5
3 14 13.9 14.1 64.6
4 10 9.9 10.1 74.7
5 5 5.0 5.1 79.8
6 7 6.9 7.1 86.9
7 4 4.0 4.0 90.9
8 4 4.0 4.0 94.9
9 5 5.0 5.1 100.0
Total 99 98.0 100.0
Missin System
2 2.0
g

Duration

< 6 months
2 1
. 7.07%
5.05 2
0
% 2
% 3
…
4… 4
5
7.07%
6
26.26% 7
8
5.05%
9
Missing
10.10%

17.17%
14.14%

The above table shows that from the sample, the maximum number of respondents have started
using HDFC bank from 1– 4 years. Having a total percentage of 67.67%.This means that from
last four years HDFC is growing and it has become more familiar to the public in private sector
banking .But if you closely look at the pie-chart you can see the majority of the sample hold an
account with HDFC only for an year.

Question no 2: Tick the most widely used product by you among the following.

Statistics

N Valid 100
Missing 1
Mean 4.25
Median 5.00
Mode 5
Std. Deviation 1.282

Cumulative
Frequency Percent Valid Percent Percent
Valid Dmat 8 7.9 8.0 8.0
FD 4 4.0 4.0 12.0
Mutual fund 8 7.9 8.0 20.0
Credit cards 19 18.8 19.0 39.0
SB/CA 57 56.4 57.0 96.0
Loans 4 4.0 4.0 100.0
Total 100 99.0 100.0
Missing System 1 1.0
Total 101 100.0
 Histogram

60

50 Dmat 1
FD 2
40
Mutual Funds 3
Credit Cards 4
Frequency

SB/CA/Sal 5
30
57
Loans 6

20

10 8 19

8 8
Mean =4.25
4 4
Std. Dev. =1.282
0 N =100
0 2 4 6
Tick the most widely used product by you among the
following

According to the data collected, on which the mean/median / std deviation analysis was run using
the SPSS tool , the median tends to indicate that the most widely used product in the sample size
is SB/CA/Sal a/c . This is indicated in the mean/median table and the histogram .this being an
ordinal scale median is the best measure.(refer to the histogram above)
Here we can also check how gender influences the choice of a product using the SPSS tool-
Compare means.
Report
Tick the most widely used product by you among the following
Sex Mean N Std. Deviation Median Skewness
Male 4.25 80 1.307 5.00 -1.456
Female 4.37 19 1.116 5.00 -1.641
Total 4.27 99 1.268 5.00 -1.480
 From the above table it can be inferred that the score of the two means are approximately similar
so gender does not quite influence the choice of the product. Though if you closely look at the
distribution of the male and female sample collected you can see a considerable difference in the
number but even that does not effect to the choice of the products made.
We can also look at it from a different perspective, which is the ANOVA(Analysis of variance)
H0: There is no significant difference between the two genders in choosing the product.
Against
H1: There is a significant difference between the two genders in choosing the product.
ANOVA Table
Sum of Mean
Squares df Square F Sig.
Tick the most widely Between (Combined)
.215 1 .215 .133 .716
used product by you Groups
among the following * Within Groups 157.421 97 1.623
Sex Total 157.636 98

Here we can conclude that the significance value is considerably more than (0.05) which says
that we can accept H0(null hypothesis).
Hence, there is no influence of gender in the choice of the product.

Question no 3: Comparing other bank products the products of HDFC

Statistics

N Valid 100
Missing 1
Mean 1.16
Median 1.00
Mode 1
Std. Deviation .707
 Skewness -1.640
Std. Error of Skewness .241

Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly dissatisfactory 1 1.0 1.0 1.0
Dissatisfactory 4 4.0 4.0 5.0
Satisfactory 68 67.3 68.0 73.0
Strongly satisfactory 27 26.7 27.0 100.0
Total 100 99.0 100.0
Missing System 1 1.0
Total 101 100.0

Comparing other bank products, the produtcs of HDFC

strongly dissatisfactory
1
. dissatisfactory
0 4.0
0 0% satisfactory
% strongly satisfactory
Missing

27.00%

68.00%

Mean is almost equal to Median (1=1.16) here in the [Link] we can conclude by saying the
that most of the customers of HDFC bank are satisfied with the products.

Question no 4: The service of which among the following products do you prefer in HDFC
Statistics
 N Valid 98
Missing 3
Mean 4.14
Median 5.00
Mode 5
Std. Deviation 1.308
Skewness -.749
Std. Error of Skewness .244

Cumulative
Frequency Percent Valid Percent Percent
Valid Dmat 3 3.0 3.1 3.1
FD 14 13.9 14.3 17.3
Mutual Funds 8 7.9 8.2 25.5
Credit Card 23 22.8 23.5 49.0
SB/CA 41 40.6 41.8 90.8
Loans 9 8.9 9.2 100.0
Total 98 97.0 100.0
Missing System 3 3.0
Total 101 100.0

Histogram

50

40
Dmat 1
FD 2
Mutual Funds 3
F re q u e n c y

30 Credit Cards 4
SB/CA/Sal 5
Loans 6
20

10

Mean =4.14
Std. Dev. =1.308
0 N =98
0 2 4 6
The service of which among the following products do
you prefer in hdfc
 The analysis pertaining to Q4 , where in the mean = 4.14 and median = 5 , reveals that credit
cards and SB/CA/Sal A/C are clearly preferred in HDFC . Also it means to suggest that the
penetration of HDFC in this segment in much higher in the market . The data also suggests
that the most SB/CA/Sal A/C users of HDFC bank prefer the same banks Credit Card . This
also can be seen the HDFC has been successful in penetrating across the requirements of its
customers instead of loosing some of its services to competitors .

Question no 5: Basing on what parameters do you choose a product

Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
Basing on what
parameters do you 99 1 6 2.39 1.743
choose a product
Valid N (listwise) 99

Statistics
N Valid 98
Missing 3
Mean 4.14
Median 5.00
Mode 5
Std. Deviation 1.308
Skewness -.749
Std. Error of Skewness .244
 Cumulative
Frequency Percent Valid Percent Percent
Valid Dmat 3 3.0 3.1 3.1
FD 14 13.9 14.3 17.3
Mutual Funds 8 7.9 8.2 25.5
Credit Card 23 22.8 23.5 49.0
SB/CA 41 40.6 41.8 90.8
Loans 9 8.9 9.2 100.0
Total 98 97.0 100.0
Missing System 3 3.0
Total 101 100.0

The service of which among the following products do you prefer in hdfc

dmat
fd
mutual funds
3 3 credit card
9 sb/ca
loans
14
Missing

41

23

Again looking at the median ,it being a ordinal scale we can conclude that customers look
from service when they want to choose a [Link] can clearly see that the service has
occupied more that 50% of the sample size,brand and features being the second important
factor for choosing a bank.
Question no 6
Analyze the performance of Credit Cards on the following parameters
 Convenient ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ Not Convenient
Costly ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ Less costly
Efficient ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __Less Efficient
Aware ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ Not Aware
Low TAT ___ ___ ___ ____ _____ ___ ___ ___ ____ ____ ___ High

Descriptive Statistics
Std.
N Minimum Maximum Mean Deviation Skewness Kurtosis
Statistic Statistic Statistic Statistic Statistic Statistic Std. Error Statistic Std. Error
Convenient 79 1 7 5.59 2.003 -1.237 .271 .184 .535
Costly 80 1 7 4.59 2.265 -.388 .269 -1.304 .532
Efficient 80 1 7 5.49 1.987 -1.152 .269 .038 .532
Aware 80 1 7 5.25 2.053 -.824 .269 -.622 .532
TAT 80 1 7 5.01 2.161 -.580 .269 -1.197 .532
Valid N
79
(listwise)

Statistics

Convenient Costly Efficient Aware TAT

N Valid 79 80 80 80 80
Missing 22 21 21 21 21
Median 7.00 5.00 6.50 6.00 6.00

Convenient

Cumulative
Frequency Percent Valid Percent Percent
Valid Not
6 5.9 7.6 7.6
Convenient(1)
2 5 5.0 6.3 13.9
3 3 3.0 3.8 17.7
4 3 3.0 3.8 21.5
5 12 11.9 15.2 36.7
6 5 5.0 6.3 43.0
Convenient(7) 45 44.6 57.0 100.0

Costly
 Cumulative
Frequency Percent Valid Percent Percent
Valid Costly(1) Cumulative
13 12.9 16.3 16.3
Frequency Percent Valid Percent Percent
2 8 7.9 10.0 26.3
Valid Less
3Efficient(1) 36 5.9
3.0 7.5
3.8 7.5
30.0
24 116 5.9
10.9 7.5
13.8 15.0
43.8
35 131 1.0
12.9 1.3
16.3 16.3
60.0
46 47 6.9
4.0 8.8
5.0 25.0
65.0
5Less costly 10
28 9.9
27.7 12.5
35.0 37.5
100.0
6 10 9.9 12.5 50.0
Efficient(7) 40 39.6 50.0 100.0

Efficient

Aware

Cumulative
Frequency Percent Valid Percent Percent
Valid Not
7 6.9 8.8 8.8
aware(1)
2 4 4.0 5.0 13.8
3 5 5.0 6.3 20.0
4 12 11.9 15.0 35.0
5 8 7.9 10.0 45.0
6 6 5.9 7.5 52.5
Aware(7) 38 37.6 47.5 100.0

TAT
Cumulative
Frequency Percent Valid Percent Percent
Valid Low
6 5.9 7.5 7.5
TAT(7)
6 10 9.9 12.5 20.0
5 8 7.9 10.0 30.0
4 5 5.0 6.3 36.3
 3 10 9.9 12.5 48.8
2 6 5.9 7.5 56.3
TAT(1) 35 34.7 43.8 100.0
Total 80 79.2 100.0

50.0
45.0
40.0
35.0
Convenient
30.0 Costly
25.0 Efficient
20.0 Awareness
TAT
15.0
10.0
5.0
0.0
1 2 3 4 5 6 7

This question gives us a descriptive analysis of the credit cards of HDFC throughout the various
parameters of the credit cards The various tables gives us a n exhaustive but and easy way to
understand the perception of customers with respect to various parameters mentioned in the
[Link] if you look at the Bar-chart we can clearly say that customers look for
convenience as their major parameter in choosing a credit card. But they we can also see that
customers are not very ahppy with the rates of the credit card and they find it [Link] is a
bipolar scale where we are using a 7-point rating scale..

Question no 7: The sweep-in facility of FD is ___________ to the customers

Statistics
 N Valid 94
Missing 7
Mean 2.29
Std. Error of Mean .079
Median 2.00
Mode 2
Std. Deviation .771
Kurtosis .385
Percentiles 25 2.00
50 2.00
75 3.00

Cumulative
Frequency Percent Valid Percent Percent
Valid Less beneficial 9 8.9 9.6 9.6
Beneficial 58 57.4 61.7 71.3
More beneficial 18 17.8 19.1 90.4
Most beneficial 9 8.9 9.6 100.0
Total 94 93.1 100.0
Missing System 7 6.9
Total 101 100.0
 The sweep in facility of FD

60 58

50
F re q u e n c y

40

30

20 18

10 9 9

0
less bebeficail beneficial more beneficail most beneficial
The sweep in facility of FD

Question no 8: Rate the following features of FD on a scale of 5.(1=Poor and 5= excellent)

Altering period of deposit _____
Maturity and payment instructions _____
Principal amount _____
Roll over mode _____

Altering period of deposit

Cumulative
Frequency Percent Valid Percent Percent
Valid 1 4 4.0 5.3 5.3
2 13 12.9 17.3 22.7
3 18 17.8 24.0 46.7
4 23 22.8 30.7 77.3
5 17 16.8 22.7 100.0
Total 75 74.3 100.0

Maturity and payment instructions

 Cumulative
Frequency Percent Valid Percent Percent
Valid 2 18 17.8 22.8 22.8
3 14 13.9 17.7 40.5
4 22 21.8 27.8 68.4
5 25 24.8 31.6 100.0
Total 79 78.2 100.0

Principal amount

Cumulative
Frequency Percent Valid Percent Percent
Valid 1 10 9.9 13.2 13.2
2 6 5.9 7.9 21.1
3 26 25.7 34.2 55.3
4 14 13.9 18.4 73.7
5 20 19.8 26.3 100.0
Total 76 75.2 100.0

Roll over mode

Cumulative
Frequency Percent Valid Percent Percent
Valid 1 5 5.0 6.5 6.5
2 15 14.9 19.5 26.0
3 14 13.9 18.2 44.2
4 23 22.8 29.9 74.0
5 20 19.8 26.0 100.0
Total 77 76.2 100.0

Features of FD

100%

80%
Roll over Mode
60% Principal Amonut
Percentages
40% Maturity
Altering Period of Deposits
20%

0%
Poor Execellent
My objective behind formulating this question was to find out whether the customers are happy
with the features offered by HDFC Bank. So while having to do the analysis part we could
analyze via the frequency tables. And my main motive was to find out the poor and the excellent
scale on a 5 point scale. So the graph above gives us a study of only the poor and the excellent
scale. So if you closely look at it you would see that the entire sample size of 100 are happy with
the maturity and payment instructions. And also the excellent bar shows equal distribution o
all the factors, forcing us to conclude that the customers are more or less happy with the FD as a
product

Question no 9: Rate on a scale of 5 the performance of HSL as a suitable room for

investment
Statistics
N Valid 72
Missing 29
Mean 3.67
Median 4.00
Std. Deviation 1.035

Cumulative
Frequency Percent Valid Percent Percent
Valid 1 3 3.0 4.2 4.2
2 4 4.0 5.6 9.7
3 24 23.8 33.3 43.1
4 24 23.8 33.3 76.4
5 17 16.8 23.6 100.0
Total 72 71.3 100.0

(1=Poor, 5=Excellent)
 Performance of HSL

4%
6%
24%
1
2
3
33%
4
5

33%

This doughnut area chart show us in terms of percentages as to how much they like or dislike
the performance of HSL (HDFC Securities Limited) on a 5 point rating
scale(1=Poor,5=Excellent).What we can see here is that rating 3&4 have equal
importance(33%) from the point of view customer preference. And 24% of people also have
find it excellent. So the customers are happy with the HSL.
Question no 10: Please rank from 1 to 5 the features that you like about loans in HDFC
TAT ________
Availability ________
Service ________
Rate of interest _________

Statistics

TAT Availability Service Rate of interest

N Valid 85 88 86 86
Missing 16 13 15 15
Mean 3.44 3.82 3.22 3.40
Median 4.00 3.00 3.00 4.00
Mode 4 5 3(a) 4
Std. Deviation 1.248 4.430 1.375 1.348
 TAT
Cumulative
Frequency Percent Valid Percent Percent
Valid 1 5 5.0 5.9 5.9
2 19 18.8 22.4 28.2
3 16 15.8 18.8 47.1
4 24 23.8 28.2 75.3
5 21 20.8 24.7 100.0
Total 85 84.2 100.0
Missing System 16 15.8
Total 101 100.0

Availability

Cumulative
Frequency Percent Valid Percent Percent
Valid 1 7 6.9 8.0 8.0
2 20 19.8 22.7 30.7
3 20 19.8 22.7 53.4
4 14 13.9 15.9 69.3
5 26 25.7 29.5 98.9
43 1 1.0 1.1 100.0
Total 88 87.1 100.0
Missing System 13 12.9
Total 101 100.0

Service

Cumulative
Frequency Percent Valid Percent Percent
Valid 1 11 10.9 12.8 12.8
2 17 16.8 19.8 32.6
3 23 22.8 26.7 59.3
4 12 11.9 14.0 73.3
5 23 22.8 26.7 100.0
Total 86 85.1 100.0
Missing System 15 14.9
 Total 101 100.0

Rate of interest
Cumulative
Frequency Percent Valid Percent Percent
Valid 1 10 9.9 11.6 11.6
2 15 14.9 17.4 29.1
3 14 13.9 16.3 45.3
4 25 24.8 29.1 74.4
5 22 21.8 25.6 100.0
Total 86 85.1 100.0
Missing System 15 14.9
Total 101 100.0

Performance of Loans

100%
90%
80%
70%
60% Rate of Interest
Percentages 50% Service
40%
Availability
30%
20% TAT
10%
0%
Poor Good Execellent

A similar interpretation like Q8,but here I have amalgamated all the scales from (1-5).Here
we can see that service is the most important factor and the customers are not happy with the
service provided by the loans department in HDFC occupying major chunk of the bar in the
[Link] in the excellent and very god bar u can see the arte of interest and TAT occupying
most of the [Link] we can conclude saying the loans department need to work hard with the
service they give to their customers.
Question no 11:Rate on a 5point rating scale your preferences regarding the
Savings/Current A/C
 Accessibility _______
Flexibility _______
Features ________
Service ________
Question no [Link] the features of Savings(SB) A/C on a 5-point rating scale.
1 2 3 4 5
Average Quarterly Balance(AQB)
Payable at Par(PAP) cheque book
Sweep in facility
Free SBI/ANDHRA bank ATM Transactions
Net/Phone Banking
Taking both these questions together and applying factor analysis we can narrow down to a
set of few components which play a major role in the functioning of a savings account.
FACTOR ANALYSIS

In principal components analysis and factor analysis one wishes to extract from a set of p
variables a reduced set of m components or factors that accounts for most of the variance in the p
variables. In other words, we wish to reduce a set of p variables to a set of m underlying super
ordinate dimensions.
These underlying factors are inferred from the correlations among the p variables. Each
factor is estimated as a weighted sum of the p variables. The ith factor is thus

Fi  Wi 1X 1  Wi 2 X 2    Wip X p

One may also express each of the p variables as a linear combination of the m factors,

X j  A1 j F1  A2 j F2    Amj Fm  U j

Where, Uj is the variance that is unique to variable j, variance that cannot be explained by any of
the common factors. FA simply reduces a set of p variables to m components or factors prior to
further analyses on those m factors.
 Extracting Principal Components

From 9 variables we can extract 9 components. This will involve solving 9 equations with 9
unknowns. The variance in the correlation matrix is “repackaged” into 9 Eigen values. Each
Eigen value represents the amount of variance that has been captured by one component Eigen
values.

Each of the 9 variable’s variance is standardized to one. With 9 variables there is 10x1 =
9variance to distribute. The principal components extraction will produce 9 components which
in the aggregate account for all of the variance in the 9 variables. That is, the sum of the 9 Eigen

values will be equal to 9, the number of variables. The proportion of variance accounted for by
one component equals its Eigen value divided by 9.

Total Variance Explained

Component Initial Eigenvalues Extraction Sums of Squared Loadings

Total % of Variance Cumulative % Total % of Variance Cumulative %
1 3.497 38.859 38.859 3.497 38.859 38.859
2 1.931 21.457 60.316 1.931 21.457 60.316
3 1.015 11.273 71.589 1.015 11.273 71.589
4 .672 7.471 79.060
5 .518 5.756 84.816
6 .440 4.885 89.701
7 .399 4.431 94.131
8 .293 3.256 97.388
9 .235 2.612 100.000

Deciding on how many components to retain rule of thumb is to retain only components with
Eigen values of one or more. That is, drop any component that accounts for less variance than
does a single variable.

 We can infer from the table that 3 components have Eigen values > 1
 So there can be three factors or principal components.
 Total of 71.589% variation is explained by these four factors.
Component Matrix

Component
1 2 3
Accessibility .635 -.545 -.085
Flexibility .646 -.584 -.197
Features .700 -.402 .055
Service .652 -.431 .242
AQB .267 .170 .923
PAP-Cheque Book .638 .408 -.055
Sweep in facility-FD .706 .554 -.042
Free ATM transactions .653 .470 -.189
Net Banking .599 .471 -.121
.

The entries in this matrix, loadings, are correlations between the components and the
variables. Since the two components are orthogonal, these correlation coefficients are also
X j  A1 j F1  A2 j F2  A3 j F3  U j
beta weights, that is, , thus A1 equals the number of
standard deviations that Xj changes for each one standard deviation change in Factor 1.

If we happen to look at the 1 st component we can see that the factors which are positively
loaded are the ones which are highly loaded among the three components.

The variables loaded (positively) well on the first component, sweep-in facilityFD
Features,Free ATM transactions, Service
The second component is loaded by Net Banking and Payable at Par(PAP) cheque book.
The third component is loaded positively by AQB,

Component 1 seems to reflect that the workings of the savings account accounts to easy
accessibility
Component 2 seems to the various features given by the Bank through flexible transactions.
Component 3 reflects to the primary features of the savings account

Conclusion:

While choosing a bank for a savings account the customers look for accessibility ,flexibility,
feartues.
And the factors contributing to these are-Sweep in facility-FD, Free ATM transactions, Net
Banking, PAP , AQB and Service.
 Now, incorporating the Q2 (Tick the most widely used product by you) and the age
group of the collected sample, we test whether there is a correlation between the two
variables?

We now use the cross tabulation and the chi-square (test for independence),so we have the
cross tabulation
Tick the most widely used product by you among the following * Age Cross tabulation

Age Total
between between between 35 between
Under 18 18 to 25 25 to 35 to 50 50 to 75
Dmat Count 0 0 8 0 0 8
Expected Count .1 1.9 4.0 1.5 .6 8.0
% within Tick the most
widely used product by .0% .0% 100.0% .0% .0% 100.0%
you among the following
% within Age .0% .0% 16.3% .0% .0% 8.1%
% of Total .0% .0% 8.1% .0% .0% 8.1%
FD Count 0 0 1 0 2 3
Expected Count .0 .7 1.5 .6 .2 3.0
% within Tick the most
widely used product by .0% .0% 33.3% .0% 66.7% 100.0%
you among the following
% within Age .0% .0% 2.0% .0% 28.6% 3.0%
% of Total .0% .0% 1.0% .0% 2.0% 3.0%
Mutual Fund Count 0 3 4 1 0 8
Expected Count .1 1.9 4.0 1.5 .6 8.0
% within Tick the most
widely used product by .0% 37.5% 50.0% 12.5% .0% 100.0%
you among the following
% within Age .0% 13.0% 8.2% 5.3% .0% 8.1%
% of Total .0% 3.0% 4.0% 1.0% .0% 8.1%
Credit Cards Count 1 5 11 2 0 19
Expected Count .2 4.4 9.4 3.6 1.3 19.0
% within Tick the most
widely used product by 5.3% 26.3% 57.9% 10.5% .0% 100.0%
you among the following
% within Age 100.0% 21.7% 22.4% 10.5% .0% 19.2%
% of Total 1.0% 5.1% 11.1% 2.0% .0% 19.2%
SB/CA Count 0 14 23 15 5 57
Expected Count .6 13.2 28.2 10.9 4.0 57.0
% within Tick the most
widely used product by .0% 24.6% 40.4% 26.3% 8.8% 100.0%
you among the following
 % within Age .0% 60.9% 46.9% 78.9% 71.4% 57.6%
% of Total .0% 14.1% 23.2% 15.2% 5.1% 57.6%
Loans Count 0 1 2 1 0 4
Expected Count .0 .9 2.0 .8 .3 4.0
% within Tick the most
widely used product by .0% 25.0% 50.0% 25.0% .0% 100.0%
you among the following
% within Age .0% 4.3% 4.1% 5.3% .0% 4.0%
% of Total .0% 1.0% 2.0% 1.0% .0% 4.0%
Count 1 23 49 19 7 99
Expected Count 1.0 23.0 49.0 19.0 7.0 99.0
% within Tick the most widely used
product by you among the following 1.0% 23.2% 49.5% 19.2% 7.1% 100.0%

% within Age 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

% of Total 1.0% 23.2% 49.5% 19.2% 7.1% 100.0%

The cross tabulation above is certainly exhaustive but if you look at it closely you can see
that across all age groups w can find the proportion of SB/CA/Sal A/C to be the highest with
the age group 25yrs-35yrs having the highest SB/CA/Sal A/C holders
 Bar Chart

25 Age
Under 18
between 18 to 25
between 25 to 35
between 35 to 50
20
between 50 to 75

15
Count

10

0
Dmat FD Mutual Fund Credit Cards SB/CA Loans
Tick the most widely used product by you among the
following

Chi-Square Tests
Asymp. Sig.
Value df (2-sided)
Pearson Chi-Square 35.788(a) 20 .016
Likelihood Ratio 31.632 20 .047
Linear-by-Linear
.067 1 .795
Association
N of Valid Cases
99
 Null hypothesis:
H0: There is no correlation between the two variables (the age and the choice of products)
Against
H1: There is a significant correlation between the two variables (the age and the choice of
products)
The chi-square measures test the hypothesis that the row and column variables in a cross
tabulation are independent . A low significance value (typically below 0.05) indicates that
there may be some relationship between the two [Link] as our significant value is
0.16,which is not lower than the significant value we cannot say that there is a relation
between the age and the choice of the product so we reject our null hypothesis.
Question no 15:Rate on a scale of 5 the comfort zone of customers in using a HDFC
product.
Descriptives
95% Confidence Interval for
N Mean Std. Deviation Std. Error Mean

Lower Bound Upper Bound

Under 18 1 2.00 . . . .
between 18 to 25 21 3.71 1.189 .260 3.17 4.26
between 25 to 35 46 3.70 1.227 .181 3.33 4.06
between 35 to 50 17 3.35 .786 .191 2.95 3.76
between 50 to 75 7 3.86 .378 .143 3.51 4.21
Total 92 3.63 1.107 .115 3.40 3.86

ANOVA
Sum of
Squares df Mean Square F Sig.
Between Groups 4.670 4 1.168 .951 .438
Within Groups 106.764 87 1.227

Looking at the descriptive we can see that the means of the ages groups 18-25yrs & 25-
35yrs
Are very close, hence said they have low [Link] if we run Students F-test the F-
statistic would compute the sample variances. Even the mean plot below clearly shows this.
H0:σ1= σ2(variance of ages group 18-25yrs is equal to variance of 25-35yrs )
Against
 M e a n o f C o m f o r t z o n e o f c u s t o m e r s in
H1: σ1≠σ2(variance of ages group 18-25yrs is not equal to variance of 25-35yrs )

u s in g a p r o d u c t o f H D F C 4

3.5

2.5

Under 18 between between between between

18 to 25 25 to 35 35 to 50 50 to 75
Age

Between Groups represents variation of the group means around the overall mean. Within
Groups represents variation of the individual scores around their respective group means. Sig
indicates the significance level of the F-test. Small significance values (<.05) indicate group
[Link] if u look at the significance vakue in the table you can see that the value is
greater than(0.05) which shows that there is no group difference between the two samples(18-
25yrs & 25-35yrs). So we accept H0(null hypothesis).

Question no 16: The merger with Centurion Bank of Punjab has made the workings of
HDFC
more flexible and easily accessible to customers.
Strongly Agree Strongly Disagree
Agree Disagree
Merger with CBP made workings of HDFC more flexible and easily accessible to customers

Cumulative
Frequency Percent Valid Percent Percent
Valid strongly dissatisfactory 2 2.0 2.1 2.1
dissatisfactory 2 2.0 2.1 4.2
satisfactory 68 67.3 70.8 75.0
strongly satisfactory 24 23.8 25.0 100.0
Total 96 95.0 100.0
Missing System 5 5.0
Total 101 100.0

Merger of CBP and HDFC Bank

70.0

60.0

50.0
40.0

30.0
Percentages
20.0
10.0

0.0
strongly satisfactory
dissatisfactory
Parameters

The merger of HDFC with CBP has satisfied the customers to 67.3% which ha occupied more
than 50% of the sample.

Question no 18: A bank that you would prefer other than HDFC
ICICI Andhra Bank
SBI IDBI
ING Vysa
 age Total
between between between between 50
Under 18 18 to 25 25 to 35 35 to 50 to 75
ICICI Count 0 5 17 3 4 29
% within which bank
would you prefer .0% 17.2% 58.6% 10.3% 13.8% 100.0%
% within age .0% 21.7% 34.7% 15.8% 57.1% 29.3%
% of Total .0% 5.1% 17.2% 3.0% 4.0% 29.3%
IDBI Count 0 1 7 1 0 9
% within which bank
would you prefer .0% 11.1% 77.8% 11.1% .0% 100.0%
% within age .0% 4.3% 14.3% 5.3% .0% 9.1%
% of Total .0% 1.0% 7.1% 1.0% .0% 9.1%
Andhra Count 0 3 5 3 2 13
% within whcich bank
would you prefer .0% 23.1% 38.5% 23.1% 15.4% 100.0%
% within age .0% 13.0% 10.2% 15.8% 28.6% 13.1%
% of Total .0% 3.0% 5.1% 3.0% 2.0% 13.1%
ING Count 0 3 3 5 1 12
% within whcich bank
would you prefer .0% 25.0% 25.0% 41.7% 8.3% 100.0%
% within age .0% 13.0% 6.1% 26.3% 14.3% 12.1%
% of Total .0% 3.0% 3.0% 5.1% 1.0% 12.1%
SBI Count 1 11 17 7 0 36
% within whcich bank
would you prefer 2.8% 30.6% 47.2% 19.4% .0% 100.0%
% within age 100.0% 47.8% 34.7% 36.8% .0% 36.4%
% of Total 1.0% 11.1% 17.2% 7.1% .0% 36.4%
Count 1 23 49 19 7 99
% within which bank would you
prefer 1.0% 23.2% 49.5% 19.2% 7.1% 100.0%
% within age 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
% of Total 1.0% 23.2% 49.5% 19.2% 7.1% 100.0%

Which bank would you prefer * Age Cross-tabulation

Age Total
between 18 between 25 between 35 between 50
Under 18 to 25 to 35 to 50 to 75
Which bank ICICI 0 5 17 3 4 29
would you IDBI 0 1 7 1 0 9
prefer
ANDHRA 0 3 5 3 2 13
ING-VYSA 0 3 3 5 1 12
SBI 1 11 17 7 0 36
Total 1 23 49 19 7 99
 Bar Chart

20 Age
Under 18
between 18 to 25
between 25 to 35
between 35 to 50
between 50 to 75
15
Count

10

0
ICICI IDBI ANDHRA ING-VYSA SBI
Which bank would you prefer

Yet a different way to analyze the competition of HDFC bank with the other competitors in
the market. Through this question I wanted to see which is the other bank that the HDFC
users prefer so that I could conclude a specific bank and tell the HDFC to use a particular
strategy where it could over come its loop holes. And with a combined effect of age with this
question we can figure out which target group to use which strategy to survive the
competition. So in this case you can see out of a sample size of 101 SBI has a frequency of
36 with ICICI being second having a count of 29.
The spread of HDFC Bank in the corporate sector (private&public)
This is the study of the various sectors tapped by HDFC bank in the city .All the sectors are
broadly categorized into 5 categories below. The column chart would help us understand
where and in which sector the bank is doing good.(Refer to the Excel in the Annexure).We
even have a segregation of all the various products that the corporates hold with HDFC
bank. A product wise bifurcation is shown in the excel sheet.(Refer to the Annexure) CSRM
[Link]
Category Number Percentages
Telecom 207 5.00%
Financial Services 499 12.10%
Central Government 1908 46.60%
Pharmaceuticals 1024 25.00%
Others 456 11.10%
Total 4094 100.00%

50.00%
45.00%
40.00%
35.00% Telecom
30.00% Financial Services
25.00% Central Government
20.00% Pharmaceuticals
15.00% Others
10.00%
5.00%
0.00%
Percentages

The graph above shows us that the HDFC has been successful in spreading across all the
central government sector. This tell us that this bank has been able to tap the important sector
with a 46.60% with the pharmaceutical companies following the trend with a 25%
RECOMMENDATIONS
 More number of ATMs in the city .

 More aggressive sale is needed for professors, lecturers, and staff members who the best
customer of savings accounts. A Special students' savings account with AQB of fewer
amounts could be launched Savings account for working professionals and self employed
youths could be started with facilities like free registration in top business consultancies,
job consultancies, hassle-free personal loans, free demat account and discounted
membership in some reputed clubs.

 Ensure the best after sale services by replacing the faulty ones immediately after getting
complain.

 A group promotional activity aiming, encouraging card holder to use their card to its
fullest should be undertaken.

 The timings of the bank to be extended from 8a.m to 8p.m.

 With every purchase, card holders be awarded with some credit points and on the end of
every quarter , special gifts should be given or discount offers on some items produced by
some company can be given, which will be sponsored by the producer, the shopkeeper
and the banker.

 There should be no hidden charges and to be explained when demanded for.

LIM1TATIONS OF THE RESEARCH
 Survey was only conducted in VISAKHAPATNAM
 Only 101 questionnaires were filled in different age and occupation groups due to time
constraint.
 Combining question 1 and 2 it becomes obvious that most people are satisfied about the
SB/CA /Sal A/C of HDFC. The interpretation doesn’t reveal the satisfaction of other
products.
 Since 70% of my sample are Sal A/C holders so its wrong to conclude that very few
people use FD, Mutual Fund, Dmat.
 Since my study did not include the income of the people I was not able to categorize the
use of the product with the income group and study if any correlation existed.
Swot Analysis….
SWOT ANALYSIS
In applying the SWOT analysis it is necessary to minimize or avoid both weaknesses and threats
of HDFC bank. Weaknesses should be looked at in order to convert them into strength. Like
wised, threat should be converted into opportunities. Lastly, strengths and opportunities should
be matched to optimize the potential of HDFC bank.

Strength:
 Low average loan to value ratio & debt averse nature of borrowers.
 Growth in urban market/ salaried class & Quality of underwriting.
 Strong Brand - customer base of over 2million.
 The bank has the power attorney of the client and executes on his/her behalf once it
gets written instructions from its clients.
 It offers custodial services which will include services such as receiving dividend
of shares and other entitlements such as buyback proposals.
 Customers don’t have to worry about tracking dividends of companies or
subscribing to buybacks.
 No threshold limit for offering its services.
 Cash of Rs. 100000 delivered at your doorstep
 Offers free Gold International Debit card, a free International Titanium card or a free
international Gold Credit card.
 It offers e-broking
 Free standing instructions available only in HDFC Bank.
 Avail of locker at just 50 % of the annual fee.
 Preferential pricing for loan against securities, home loans.
 As a preferred customer you are entitled to a waiver of up to Rs. 2000 per annum on a
host of service charges like
 Demand Draft/ Managers Cheque charges
 Inter-branch funds charges
 Stop payment charges
  Cheque return/collection charges
 DD cancellation charges
 Hold mail charges
 Duplicate statement charges
 Certificate of balance charges
 Recovery of old records charges
 FIRC charges
.
Weakness:
 Charges customers on the various services it offers.
 The bank does not charge any fixed fees, it earns commission on the products the
customer buys.
 Cash withdrawal limit up to Rs. 25000/day.
 Door step banking available only twice a month and only in metros.
 Does not provide 24 hours banking transactions by phone.
 Does not provide 365 days of banking transactions
 Not so focusing more on rural areas.

Opportunity
 Growth in demand-driven by improved affordability
 Rising disposable income
 Affordable interest rates
 Generally stable property prices
 Fiscal incentives on both interest and principal repayments.
 Increasing urbanization & Increased network of outlets.
 Can target to the small investors not only in urban areas but also to the rural area.
 Can Provide a zero balance savings account to the customers
 Can provide the interest on deposits as provided by the co-operatives
 Can trap the students segment by providing a very low AQB or Zero balance.
HDFC Bank can have a professional savings account with the following benefits.
  Free registration in reputed consultancies.
 Easy personal loan, car loans, to the account holder.

 A Dmat account free with every current & savings accounts (without any registration fee
and stamp fee)
 Free membership facility to the top rated club members in India.

Threats
 Competition from other banks is very high .
 Some banks provide 24 hour banking transaction over phone.
 Some banks provide transactions for 365 days.
 Less number of branches as compared to others.
 As third party cash deposits is not accepted there is a fear that HDFC bank may loose
some customers.
A Comparative Study Among
the Emerging Commercial Banks
Indian banking sector: Is it on the right track?

Performance indicators
Commonly-used measures to asses the performance of the banking sector are: Return on Asset
(ROA), Operating Profit Ratio (OPR), Net Interest Margin (NIM), Operating Cost Ratio (OCR)
and Staff Expenditure Ratio (SER). The first-two are generally considered profitability
measures, while the others, the efficiency indices.

Overall performance improvement

A comparison of performance indices that the reform measures helped to improve the overall
performance of industry. This is reflected in the improvement of all performance indicators
barring the net interest margin. Interestingly, the ROA, treated as a proxy for risk-adjusted
return, increased from (-) 0.28 percent in the pre-liberalization period to 0.79 percent (against
more than 1 percent in other merging markets such as Singapore , Malaysia and Korea) post-
liberalization ,indicating a significant rise in the ability of banks to convert their assets into net
earnings. Another interesting aspect is that despite a marginal fall in the net interest margin from
2.84 to 2.73 ( which might be due to policy change) , the banking industry has managed to
improve its OPR by increasing its non-interest fee-based income and reducing its operating
costs/staff expenses. The evidence indicates that after the reform initiation period, the banks have
increasingly been providing off balance sheet items such as derivatives, which generate major
part of non-interest income. The proportion of operating cost/staff expenses has declined mainly
due to computerization and the voluntary retirement scheme.

Apart from the overall improvement across the board, another important
criterion to evaluate the success story is to check whether the competitive force has led to
any convergence in the performance of different ownership group’s in the post-
liberalization period. Exposure to the competitive forces is often argued as a panacea to
shake poorly performing banks out of their slumber. Although the public banks compared
 poorly with private banks during the initial period , they made a significant improvement
in the latter period by responding well to the new challenges of competition and

consolidation , mostly following a gradual and cautious approach . The pay off is well
reflected in the increase in their ROA, OPR and NIM. Some possible reasons for the
better performance of public banks could be

 They still undertake most of the government borrowing programmers, thereby

generating significant fee based income;

 The market discipline imposed by the listing of most public sector banks has also
probably contributed to this improved performance; and

 The reform measures have changed their business strategies particularly greater
diversification of non-fund based business and emergence of treasury and foreign
exchange business.
The study reveals that the OPR across four ownership groups tend to converge. The NIM
tends to converge across private and public sectors while the OCR continues to remain
significantly different across ownership groups.
Conclusion….
Conclusion
The SWOT analysis shows the competitive strategy of HDFC bank especially in
widening its networks, continuous up gradation of technology (Fine wire by i-flex) for reduction
in OCR and its specific geographical(Rural banking),demographical strategy will bring to serve
as a best bank in India.

The Competitor Analysis show that it has to focus more to increase its NIM. The percentage of
net IPA and capital adequacy ratios are very good relative to its competitors.

The survey throws light on various Issues that the customer faces in the market.

Analyzing the findings it can be said that good customer relationship raises awareness among the
people. There are tough competitions and thus there exists a lot of room to improve so as to

become the market leader from all aspects. The only thing is the making of and implementation
of the proper strategy in the best effective way. By understanding the steps of competitors before
they were implemented is the way lead to the market.

The HDFC Bank believes in adopting and adhering to the best corporate governance practices
and continuously benchmarking itself against each such practices in the industry. The Bank
understands and respects its fiduciary role and responsibility to shareholders and strives hard to
meet their expectations. I believe that the best board practices. Transparent disclosures and
shareholder empowerment are necessary for creating shareholder value. The cardinal principles
such as independence, Accountability, responsibility, transparency ,fair and timely disclosures,
credibility serve as the means for implementing the philosophy of corporate governance in letter
and in spirit. The banks employees are very friendly among their coordinates and also to their
customers.
 BIBLIOGRAPHY

A. Annual Report of HDFC Bank

B. Marketing Management by Philip Kotler &Keller

C. Marketing Research by Naresh Malhotra

D. Websites:-

 [Link]
 [Link]
 [Link]
 [Link]
 [Link]
 [Link]
 [Link]
Annexures
 QUESTIONNAIRE
1. How long have you been using a product of HDFC__________

2. Tick the most widely used product by you among the following.
Dmat/Hsl A/c FD Mutual Fund
Credit Cards SB/CA/Sal A/C Loans
3 Comparing other bank products the products of HDFC are
Strongly satisfactory Dissatisfactory
Satisfactory Strongly Dissatisfactory

[Link] service of which among the following products do you prefer in HDFC
(Tick as many as below)
Dmat/ HSL A/c FD Mutual Fund
Credit Card SB/CA/Sal A/c Loans
5 Basing on what parameters do you choose a product
Service Features
Rate of interest/ return Market Value
Brand Accessibility

6. Analyze the performance of Credit Cards on the following parameters

Convenient ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ Not Convenient
Costly ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ Less costly
Efficient ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __Less Efficient
Aware ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ Not Aware
Low TAT ___ ___ ___ ____ _____ ___ ___ ___ ____ ____ ___ High
7 .The sweep-in facility of FD is ___________ to the customers
Less Beneficial More Beneficial
 Beneficial Most Beneficial

8. Rate the following features of FD on a scale of 5.(1=Poor and 5= excellent)

Altering period of deposit _____
Maturity and payment instructions _____
Principal amount _____
Roll over mode _____
[Link] on a scale of 5 the performance of HSL as a suitable room for investment
__________________________
10. Please rank from 1 to 5 the features that you like about loans in HDFC
TAT ________
Availability ________
Service ________
Rate of interest _________
11. Rate on a 5point rating scale your preferences regarding the Savings/Current A/C
Accessibility _______
Flexibility _______
Features ________
Service ________
[Link] the features of Savings(SB) A/C on a 5-point rating scale.
1 2 3 4 5
Average Quarterly Balance(AQB)
Payable at Par(PAP) cheque book
Sweep in facility
Free SBI/ANDHRA bank ATM Transactions
Net/Phone Banking

13.A Current(CA) A/c provides you with the reach and flexibility that your business
 demands.
Strongly Agree Strongly Disagree
Agree Disagree
[Link] products of HDFC work in the benefit of customers
Strongly Agree Strongly Disagree
Agree Disagree
 [Link] on a scale of 5 the comfort zone of customers in using a HDFC product.____

[Link] merger with Centurion Bank of Punjab has made the workings of HDFC
more flexible and easily accessible to customers.
Strongly Agree Strongly Disagree
Agree Disagree
[Link] us one thing that you would want to add to the functionality of the HDFC
Bank.

18.A bank that you would prefer other than HDFC

ICICI IDBI
Andhra Bank ING Vysa
SBI

Personal Information
Name:
Age: Sex: M F
Ph:
Email id: