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CHAPTER-1

INTRODUCTION

Service with a smile:

Todays finicky banking customers will settle for nothing less. The customer has come to realize

somewhat belatedly that he is the king. The customers 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. n short he wants financial house that

will more than !ust clear his cheque and updates his passbook" he wants a bank that cares and

provides great services.

#o does H$%& bank meet these heightened expectations' (hat are the customers perceptions

of service quality of the banks' (hich dimension of service quality of H$%& bank is performing

well' To find out answers to these questions undertook a survey of ) branches of H$%& bank.

* lot of surveys have been done in the past to understand the aspect of customer satisfaction and

to find out the customer friendly banks. +y research is conducted to find out ,#-/&-

01*2T3 4% H$%& 5*678.

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COMPANY PROI!E

The Housing $evelopment %inance &orporation 2imited 9H$%&: was amongst the first to

receive an ;in principle; approval from the eserve 5ank of ndia 95: to set up a bank in the

private sector< as part of the 5;s liberalization of the ndian 5anking ndustry in =>>?. The

bank was incorporated in *ugust =>>? in the name of ;H$%& 5ank 2imited;< with its registered

office in +umbai< ndia. H$%& 5ank commenced operations as a #cheduled &ommercial 5ank

in @anuary =>>A.

H$%& 5ank comprises of a dynamic and enthusiastic team determined to accomplish the vision

of becoming a (orldBclass ndian bank. H$%& banks business philosophy is based on our four

core values B &ustomer %ocus< 4perational -xcellence< Croduct 2eadership and Ceople. 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.

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"USINESS OCUS

H$%& 5ank;s mission is to be a (orldB&lass ndian 5ank. The ob!ective 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. H$%& 5ank;s business philosophy is based on four core values B 4perational

-xcellence< &ustomer %ocus< Croduct 2eadership and Ceople.

MISSION STATEMENT O HDC "AN#

(orld &lass ndian 5ank.

5enchmarking against international standards.

To build sound customer franchises across distinct businesses

5est practices in terms of product offerings< technology< service levels< risk management and

audit D compliance

$ISION STATEMENT O HDC "AN#

The H$%& 5ank is committed to maintain the highest level of ethical standards< professional

integrity and regulatory compliance. H$%& 5anks business philosophy is based on four core

values such as"

=. 4perational excellence.

). &ustomer %ocus.

E. Croduct leadership.

?. Ceople.

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The ob!ective of the H$%& 5ank is to provide its target market customers a full range of

financial products and banking services< giving the customer a oneBstep window for all hisFher

requirements. The H$%& 5ank 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.

"USINESS STRATE%Y

ncreasing market share in ndias expanding banking

$elivering high quality customer service

+aintaining current high standards for asset quality through disciplined credit risk

management.

$evelop innovative products and services that attract targeted customers and address

inefficiencies in the ndian financial sector.

DISTRI"UTION NET&OR#

H$%& 5ank is headquartered in +umbai. The 5ank at present has an enviable network of over=))> branches spread over ??? cities across ndia. *ll branches are linked on an online realBtime

basis. &ustomers in over =)G locations are also serviced through Telephone 5anking. The 5ank;s

expansion plans take into account the need to have a presence in all ma!or 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. 5eing a clearingFsettlement bank

to various leading stock exchanges< the 5ank has branches in the centers where the 6#-F5#- has

a strong and active member base.

The 5ank also has a network of about over )A) networked *T+s across these cities. +oreover? was heading &itibank;s operations in +alaysia.

The 5ank;s 5oard of $irectors is composed of eminent individuals with a wealth of experience

in public policy< administration< industry and commercial banking. #enior executives

representing H$%& are also on the 5oard.

#enior banking professionals with substantial experience in ndia and abroad head various

businesses and functions and report to the +anaging $irector. Jiven 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.

TECHNO!O%Y

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H$%& 5ank operates in a highly automated environment in terms of information technology and

communication systems. *ll the bank;s branches have online connectivity< which enables the

bank to offer speedy funds transfer facilities to its customers. +ultiBbranch access is also

provided to retail customers through the branch network and *utomated Teller 9*T+s:.

The 5ank has made substantial efforts and investments in acquiring the best technology

available internationally< to build the infrastructure for a world class bank. The 5ank;s business is

supported by scalable and robust systems which ensure that our clients always get the finest

services we offer.

The 5ank has prioritized its engagement in technology and the internet as one of its key goals

and has already made significant progress in webBenabling its core businesses. n each of its

businesses< the 5ank has succeeded in leveraging its market position< expertise and technology to

create a competitive advantage and build market share.

'UA!ITY PO!ICY

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.

INNO$ATION: ecognizing the different needs of our customers< the bank offers a range of

innovative products to meet these needs.

INTE%RITY

CUSTOMER CENTRIC

PEOP!E CARE (ONE OR A!! AND A!! OR ONE)

TEAM &OR#

*OY AND SIMP!ICITY

"USINESS

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H$%& 5ank 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.

&h+lesale "a,i,. Services

The 5ank;s target market ranges from large< blueBchip manufacturing companies in the ndian

corporate to small D midBsized corporate and agroBbased businesses. %or these customers< the

5ank 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. 5ased on its superior product delivery F service levels and strong customer

orientation< the 5ank has made significant inroads into the banking consortia of a number of

leading ndian corporate including multinationals< companies from the domestic business houses

and prime public sector companies. t is recognized as a leading provider of cash management

and transactional banking solutions to corporate customers< mutual funds< stock exchange

members and banks.

Retail "a,i,. Services

The ob!ective of the etail 5ank is to provide its target market customers a full range of financial

products and banking services< giving the customer a oneBstop window for all hisFher banking

requirements. The products are backed by worldBclass service and delivered to customers

through the growing branch network< as well as through alternative delivery channels like *T+s persons were uncertain and ? persons disagreed. 6o one strongly agreed or

disagreed with the statement. This means"

ALK people were uncertain about this statement.

4ut of the total respondents only LK disagreed

E?K people agreed that H$%& banks physical facilities are visually appealing.

'/es69 The 3a,s rece5ti+, 2es em5l+0ees are ,eat a55eari,.6

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SCA!E RE'UENC

Y

PERCENTA%E CUMU!ATI$E PERCENTA%E

DISA%REE A =G =G

UNCERTAIN )= ?) A)A%REE =L E LL

STRON%!Y

A%REE

=) =GG

TOTA! AG =GG

Sales

'ISAGREE

UNCERTAIN

AGREE

STRONGY AGREE

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INTERPRETATION:

H$%& banks employees appear neat. Here analysis shows that ma!ority were neutral. *mong

the total respondent )= respondents were neutral< =L people agreed and respondents strongly

agreed. The rest disagreed. %rom analysis found that some respondents agreed with this

statement but most of the respondents think the employees of the H$%& bank appear neat.

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'/es6< Materials ass+ciate2 with the service s/ch as 5am5hlets +r stateme,ts are vis/all0

a55eali,. at the 3a,.

SCA!E RE'UENCY PERCENTA%E CUMU!ATI$E PERCENTA%E

DISA%REE I =? =?

UNCERTAIN )) ?? AL

A%REE =L E >?

STRON%!Y

A%REE

E =GG

TOTA! AG =GG

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Sales

'ISAGREE

UNCERTAIN

AGREE

STRONGLY

AGREE

INTERPRETATION:

+aterials associated with the service are visually appealing at H$%& bank. Here EK

respondents agreed with this statement and K strongly agreed with this statement. ??K were

neutral that is most and =?K disagreed. There was no respondent who strongly disagreed. Hence 1>>

Sales

'ISAGREE

UNCERTAIN

AGREE

STRONGLY AGREE

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INTERPRETATION:

%rom my analysis found that A?K respondents agreed that employees of H$%& bank have

complete knowledge to answer their questions. )K respondents strongly agreed to this

statement and only ?K disagreed. =LK neither agreed nor disagreed.

EMPATHY DIMENSION O SER$ICE 'UA!ITY '/esti+,1B t+ 7>:

&aring and individualized attention that firm provides to its customers.

'/es61B The 3a, .ives 0+/ i,2ivi2/al atte,ti+,6


DISA%REE 7 ?7 ?7

UNCERTAIN 17 7< B

A%REE 1> 7> =

STRON%!Y

A%REE

7 < 1>>

TOTA! ?> 1>>

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Sales

'ISAGREEUNCERTAIN

AGREE

STRONGLY AGREE

INTERPRETATION:

H$%& bank is not able to give individual attention to its customers as out of the total

respondents A?K disagreed with this statement. =)K of the respondents were neutral and only

=)K agreed and )K strongly agreed. %rom this finding it can be concluded that it is unable to

give individual attention to its customers.

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'/es61; The 3a, has +5erati,. h+/rs c+,ve,ie,t t+ all its c/st+mers6


DISA%REE 7 < >

TOTA! ?> 1>>

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Sales

'ISAGREE

UNCERTAIN

AGREE

STRONGLY AGREE

INTERPRETATION:

H$%& bank has operating hours convenient to all its customers. 4ut of AG respondents< )I

respondents agreed with this statement and only ) respondents disagreed. *lso I respondents

strongly agreed that the bank has operating hours convenient to its customers.

'/es61= The 3a, has 0+/r i,terests 3est at heart6


STRON%!Y 9

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DISA%REE

DISA%REE ? 1> 1

UNCERTAIN 1> 7> 9

A%REE 7? ?> ;

STRON%!Y A%REE B 1< 1>>

TOTA! ?> 1>>

Sales

S)!%",. '/(,!ee

'/(,!ee

U"e!)/"

A,!ee

S)!%",. '/(,!ee

INTERPRETATION:

H$%& bank has your best interests at heart. Here analysis shows that )A respondents agreed and

I respondents strongly agreed with this statement. )GK were neutral and the rest disagreed and

strongly disagreed.

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'/es67> The em5l+0ees + the 3a, /,2ersta,2 0+/r s5eciic ,ee2s6


DISA%REE ? 1> 1>

UNCERTAIN 71 =7

STRON%!Y

A%REE

< ; 1>>

TOTA! ?> 1>>

Sales

'ISAGREE

UNCERTAIN

AGREE

STRONGLY AGREE

INTERPREATION:

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-mployees of H$%& bank understand specific needs. (ith this statement most of the

respondents were neutral. *mong the total respondents )G respondents agreed and ? respondents

strongly agreed. A respondents disagreed with this statement.

MEASURIN% SER$ICE 'UA!ITY DIMENSIONS

+easuring the quality of a service can be a very difficult exercise. 1nlike product where there

are specific specifications such as length< depth< width< weight< colour etc. a service can have

numerous intangible or qualitative specifications.

Carasuraman< Meithaml< and 5erry 9=>LA: provide a list of determinants of service quality"

access< communication< competence< courtesy< credibility< reliability< responsiveness< security

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