Introduction

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to
receive an 'in principle' approval from the Reserve Bank of India (RBI) toset up a bank in the
private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. The
bank was incorporated in August 1994 in the nameof 'HDFC Bank Limited', with its registered
office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank
in January 1995.
HDFC Bank began operations in 1995 with a simple mission: to be a"World-class Indian
Bank". They realised that only a single-minded focus on productquality and service excellence
would help them get there. Today, they are proud tosay that they are well on our way towards
that goal.It is extremely gratifying that their efforts towards providing customer conveniencehave
been appreciated both nationally and internationally.HDFC bank has been showered with a
number of awards, consisting of The BestEmployer Award in 2007-2008.
ABOUT THE SUBJECT
Organizational studies, organizational behavior, and organizational theory
Is the systematic study and careful application of knowledge about how people as individuals
and as groups - act within organization..Organizational studies encompasses the study of
organizations from multiple view points, methods, and levels of analysis.
Whenever people interact in organizations, many factors come into play. Modern organizational
studies attempt to understand and model these factors. Like all modernist social sciences,
organizational studies seeks tocontrol, predict, andexplain.

A HISTORY OF THE SUBJECT

DFC Bank Limited is an Indian banking and financial services company headquartered
in Mumbai, Maharashtra. It is the fifth largest bank in India by assets, incorporated in 1994. It is
the largest private sector bank in India by market capitalization as of 24 February 2014. As on
Jan 2 2014, the market cap value of HDFC was around US$26.88 billion, as compared to Credit
Suisse Group with US$47.63 billion. The bank was promoted by the Housing Development
Finance Corporation, a premier housing finance company (set up in 1977) of India.
As of 31 March 2013, the bank had assets of INR 4.08 trillion. For the fiscal year 2012-13, the
bank has reported net profit of INR 69 billion, up 31% from the previous fiscal year. Its customer
base stood at 28.7 million customers on 31 March 2013.
HDFC Bank was incorporated in August 1994 and currently has an nationwide network of 3,488
Branches and 11,426 ATM's in 2,231 Indian towns and cities.

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 RBIs 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.
Our single-minded focus on product quality and service excellence has helped us garner the
appreciation of both national and international organizations.
Join the workforce of India's leading private sector bank that has won accolades from top
national and international magazines, and explore a world of opportunities.
HDFC Bank's Corporate Governance Policy has been adopted keeping in mind the importance of
attaining fairness for all stakeholders, as well as achieving organizational efficiency.

Study of Important
ORGANIZATIONAL CULTURE
Organizational culture
is a concept in the field of Organizational studies and management which describes the attitudes,
experiences, beliefs and values of an organization. It has been defined as "the specific collection
of values and norms that are shared by people and groups in an organization and that control the
way they interact with each other and with stakeholders outside the organization.
Strong culture
is said to exist where staff respond to stimulus because of their alignment to organizational
values .Conversely, there is weak culture where there is little alignment with organizational
values and control must be exercised through extensive procedures and bureaucracy. Where
culture is strongpeople do things because they believe it is the right thing to dothere is a risk
of another phenomena on, Groupthink . "Groupthink" was described by Irving L. Janis. He
defined it as "...a quick and easy way to refer to a mode of thinking that people engage when
they are deeply involved in a cohesive in group, when members' strivings for unanimity override
their motivation to realistically appraise alternatives of action." This is a state where people, even

if

they have different ideas, do not challenge organizational thinking, and there fore there is a
reduced capacity for innovative thoughts. This could occur, for example, where there is heavy
reliance on a central charismatic figure in the organization, or where there is an evangelical bel
ief in the organizations values, or also in groups where a friendly climate is at the base of thei
r identity (avoidance of conflict). Infect groupthink is very common, it happens all the tim
e, in almost every group. Members that are defiant are often turned down or seen as a negative
influence by the rest of the group, because they bring conflict. Innovative organizations need
individuals who are prepared to challenge the statuesqu

ORGANIZATIONAL EFFECTIVENESS
Organizational effectiveness
is the concept of how effective an organization is in achieving the out comes the organization
intends to produce. The idea of organizational effectiveness is especially important for non-profit
organizations as most people who donate money to non-profit organizations and charities are
interested in knowing whether the organization is effective in accomplishing its goals. An
organization's effectiveness is also dependent on its communicative competence and ethics. The
relationship between these three is simultaneous. Ethics is a foundation found within
organizational effectiveness. An organization must exemplify respect, honesty, integrity and
equity to allow communicative competence with the participating members. Along with ethics
and communicative competence, members in that particular group can finally achieve their
intended goals. Organizational effectiveness is an abstract concept and is basically impossible to
measure. Instead of measuring organizational effectiveness, the organization determines proxy
measures which will be used to represent effectiveness. Proxy measures used may include such
things as number of people served, types an sizes of population segments served, and the demand
within those segments for the services the organization supplies.
For instance, a non-profit organization which supplies meals to house bound people may collect
statistics such as the number of meals cooked and served, the number of volunteers delivering
meals, the turnover and retention rates of volunteers, the demographics of the people served, the
turnover and retention of consumers, the number of requests for meals turned down due to lack
of capacity(amount of food, capacity of meal preparation facilities, and number of delivery
volunteers), and amount of wastage. Since the organization has as its goal the preparation of
meals and the delivery of those meals to house bound people, it measures its organizational
effectiveness by trying to determine what actual activities the people in the organization do in
order to generate the outcomes the organization wants to create. Activities such as fundraising or
volunteer training are important because they provide the support needed for the organization to
deliver its services but they are not the outcomes per se. These other activities are overhead
activities which assist the organization in achieving its desired outcomes.
EMPLOYEE ENGAGEMENT
8

Employee engagement is a concept that is generally viewed as managing discretionary effort,

that is, when employees have choices, they will act in a way that furthers their organization's
interests. An engaged employee is a person who is fully involved in, and enthusiastic about, his
or her work .Engaged employees care about the future of the company and are willing to invest
the discretionary effort. Engaged employees feel a strong emotional bond to the organization that
employs them.
FACTORS AFFECTING EMPLOYEE ENGAGEMENT:
Employee perceptions of job importance.
Employee clarity of job expectations. "If expectations are not clear and basic materials and
equipment not provided, negative emotions such as boredom or resentment may result, and the
employee may then become focused on surviving more than thinking about how he can help the
organization succeed."
Career advancement/improvement opportunities. "Plant supervisors and managers indicated that
many plant improvements were being made outside the suggestion system, where employees
initiated changes in order to reap the bonuses generated by the subsequent cost savings."
Regular feedback and dialogue with superiors. "Feedback is the key to giving employees a sense
of where theyre going, but many organizations are remarkably bad at giving it. "'What I really
wanted to hear was 'Thanks. You did a good job.' But all my boss did was hand me a check.'
Quality of working relationships with peers, superiors, and subordinates."...if employees'
relationship with their managers is fractured, amount of perks will persuade the employees to
perform at top levels. Employee engagement is a direct reflection of how employees feel about
their relationship with the boss."
Perceptions of the ethos and values of the organization.
Effective Internal Employee Communications - which convey a clear description of "what's
going on". "'If you that employees want to be involved in what they are doing then this trend is
clear (from small businesses to large global organizations). The effect of poor internal
communications is seen as its most destructive in global organizations which suffer from
employee annexation- where the head office in one country is buoyant (since they are closest to
the action, know what is going on, and are heavily engaged) but its annexes (who are furthest
away from the action and know little about what is happening) are dis-engaged. In the worst
9

case, employee annexation can be very destructive when the head office attributes the annex's
low engagement to its poor performance... when its poor performance is really due to its poor
communications.

Products

10

HDFC Bank offers the following core products:

NRI banking
Under NRI Banking, HDFC offers.

Accounts & Deposits

Money Transfer

Investments & Insurance

Research Reports

Payment Services

SME banking
Under SME Banking, HDFC offers:

Accounts & Deposits

Business Financing

Trade Services

Payments & Collections

Cards

Wholesale banking
HDFC offers Wholesale Banking for Corporates and Financial Institutions & Trusts. The Bank
also provides services such as Investment Banking and other services in the Government sector.

11

Services
Wholesale banking services
HDFC Bank provides a range of commercial and transactional banking services, including
working capital finance, trade services, transactional services, cash management, etc. to large,
small and mid-sized corporates and agriculture-based businesses in India. The bank is also a
leading provider of these services to its corporate customers, mutual funds, stock exchange
members and banks.
Retail banking services
HDFC Bank was the first bank in India to launch an International Debit Card in association with
VISA (Visa Electron). The bank also issues the MasterCard Maestro debit card. The Bank
launched its credit card business in late 2001. By the end of June 2013, it had a credit card base
of 5.94 million. By March 2012, the bank had a total card base (debit and credit cards) of over
19.7 million. The Bank is also one of the leading players in the "merchant acquiring" business
with over 240,000 point-of-sale (POS) terminals for debit / credit cards acceptance at merchant
establishments. The Bank is positioned in various net based B2C opportunities including a wide
range of Internet banking services for Fixed Deposits, Loans, Bill Payments, etc.
Treasury[
The bank has three main product areas - Foreign Exchange and Derivatives, Local Currency
Money Market & Debt Securities, and Equities. These services 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.
Operations

12

As of 30 September 2013, HDFC Bank has 3,251 branches and 11,177 ATMs, in 2,022 cities in
India, and all branches of the bank are linked on an online real-time basis. The Bank has overseas
branch operations in Bahrain and Hong Kong.

HDFC Bank has two subsidiaries:

HDB Financial Services Limited (HDBFS): HDBFS is engaged in retail asset financing. It is
a non-deposit taking non-bank finance company (NBFC). Apart from lending to individuals, the
company grants loans to micro, small and medium business enterprises. It also runs call centers
for collection services to the HDFC Banks retail loan products. HDFC Bank holds 97.4% shares
in HDBFS. As of March 31, 2013, HDBFS has 230 branches in 184 cities. During the FY 201213, HDBFS had turnover of INR 9.6 billion and profit after tax of INR 1 billion. It has 6,404
employees as of 31 March 2013.
HDFC Securities Limited (HSL): HSL is engaged in stock broking. As of March 31, 2013,
HDBFS has 194 branches across 150 cities. HDFC Bank has 62.1% shareholding in HSL.
During the FY 2012-13, HSL had turnover of INR 2.3 billion and profit after tax of INR 668
million. During the year, the Company received the Best e-Brokerage Award - 2012 in the
Outlook Money Awards in the runner up category.
Listings and shareholding
The equity shares of HDFC Bank are listed on the Bombay Stock Exchange, where it is a
constituent of the BSE SENSEX index, and the National Stock Exchange of India, where it is a
constituent of the CNX Nifty. Its American Depositary Shares are listed on the NYSE. Its Global
Depository Receipts (GDRs) are listed on the Luxembourg Stock Exchange where 2 GDRs
represent one underlying equity share of HDFC Bank.
Shareholding: On 30 September 2013, the promoter group Housing Development Finance
Corporation held 22.72% of its equity shares. 33.61% of the shares were owned by the Foreign
Institutional Investors (FII). Around 428,000 individual public shareholders own approx. 8.43%
of its shares. The remaining 35.24% shares are owned by others.

13

Contributing Fields to Organizational Behaviour

Psychology: Psychology is an applied science, which attempts to explain human behaviour
in a particular situation and predicts actions of individuals. Psychologists have been able
to modify individual behaviour largely with the help of various studies. It has contributed
towards various theories on learning, motivation, personality, training and development,
theories on individual decision making, leadership, job satisfaction, performance appraisal,
attitude, ego state, job design, work stress and conflict management. Studies of these
theories can improve personal skills, bring change in attitude and develop positive approach
to organizational systems. Various psychological tests are conducted in the organizations
for selection of employees, measuring personality attributes and aptitude. Various other
dimensions of human personality are also measured. These instruments are scientific in
nature and have been finalized after a great deal of research. Field of psychology continues.
ORGANIZATIONAL BEHAVIOUR
to explore new areas applicable to the field of organizational behaviour. Contribution of
psychology has enriched the organizational behaviour field.
Sociology: Science of Sociology studies the impact of culture on group behaviour and
has contributed to a large extent to the field of group-dynamics, roles that individual plays
in the organization, communication, norms, status, power, conflict management, formal
organization theory, group processes and group decision-making.
Political science: Political science has contributed to the field of Organizational
behaviour. Stability of government at national level is one major factor for promotion of
international business, financial investments, expansion and employment. Various
government rules and regulations play a very decisive role in growth of the organization.
All organizations have to abide by the rules of the government of the day.
Social psychology: Working organizations are formal assembly of people who are
14

assigned specific jobs and play a vital role in formulating human behaviour. It is a subject
where concept of psychology and sociology are blend to achieve better human behaviour in
organization. The field has contributed to manage change, group decision-making,
communication and ability of people in the organization, to maintain social norms.
Anthropology: It is a field of study relating to human activities in various cultural
and environmental frameworks. It understands difference in behaviour based on value
system of different cultures of various countries. The study is more relevant to organizational
behaviour today due to globalization, mergers and acquisitions of various industries. The
advent of the 21st century has created a situation wherein cross-cultural people will have
to work in one particular industry. Managers will have to deal with individuals and groups
belonging to different ethnic cultures and exercise adequate control or even channelise
behaviour in the desired direction by appropriately manipulating various cultural factors.
Organization behaviour has used the studies on comparative attitudes and cross-cultural
transactions. Environment studies conducted by the field of anthropology aims to
understand organizational human behaviour so that acquisitions and mergers are smooth.
Organizations are bound by its culture that is formed by human beings.

15

OBJECTIVES OF THE STUDY

The objective of the study is the purpose for which the study is conducted and it is undertaken.
The objective decides the procedure and the path which will betaken for the study. The objective
is the base on which the foundation of the study is built. The objective should be decided with
utmost concentration and due consideration. The objective of our study is:
To analyze the organizational culture in HDFC Bank
To analyze the employee engagement in HDFC Bank
To analyze organizational effectiveness in HDFC Bank
The study mainly aims at studying the housing activities in Hyderabad and
financing by LICHFL & HDFC in Hyderabad. In addition to measuring the service
quality being provided by LICHFL & HDFC.
The study specifically aims at :
1. Studying the importance of housing, demand for housing and house
finance in India.
2. Evaluation of the role of LICHFL & HDFC in financing of houses in
Hyderabad.
3. To identify the popular schemes of LICHFL & HDFC.
4. To analyze the trends in housing finance by LICHFL & HDFC.
5. To ascertain the problems of borrowers of LICHFL & HDFC while
availing housing loans.
6. To evaluate the impact of tax considerations on housing finance with
respect to LICHFL & HDFC.
7. Measuring the service quality being provided by LICHFL & HDFC to its
customers in Hyderabad.
16

8. Finally to suggest certain measures to housing loan policy makers of

LICHFL & HDFC for increasing the service quality to its customers so as
to increase its base
RESEARCH METHODOLOGY
The procedure adopted for conducting the research requires a lot of attentionas it has direct
bearing on accuracy, reliability and adequacy of resultsobtained. It is due to this reason that
research methodology, which we
usedat the time of conducting the research, needs to be elaborated upon.Research Methodology i
s a way to systematically study and solve theresearch problems. If a researcher wants to claim his
study as a good study,he must clearly state the methodology adapted in conducting the research
theresearch so that it way be judged by the reader whether the methodology of work done is
sound or not.
The Research Methodology here includes.
.Meaning of Research.
.Research Problem.
.Research Design.
.Sampling Design.
.Data Collection method.
.Analysis and interpretation of Data
.Meaning Research:
Research is defined as ascientific and systematic search for
pertinentinformation on a specific topic.
Research is an art of scientificinvestigation. Research is a systematized effort to gain now
knowledge. It isa careful investigation or inquiry especially through search for new facts inany
branch of knowledge. Research is an academic activity and this term
should be used in a technical sense. Research comprises defining andredefining problems,
formulating hypothesis or suggested solutions.
Makingdeductions and reaching conclusions to determine whether they if theformulating hypoth
esis. Research is thus, an original contribution to theexisting stock of knowledge making for its
advancement. The search for knowledge through objective and systematic method of finding so
17

Research Problem
The first step while conducting research is careful definition of Research Problem. To ERR IS
THE HUMAN is a proverb which indicates that no one is perfect in this world. Every
researcher has to face many problems which conducting any research thats why problem
statement is defined to know which type of problems a researcher has to face while conducting
an
Problem well defined is problem half solved.
Basically, a problem statement refers to some difficulty, which
researcher experiences in the context of either a theoretical or practical situation
andwants to obtain the solution for the same.The problem statement here is:
To make a Financial Analysis of Financial statements of HDFC BANK
KURUKSHETRA.
Research Design
A research designs is the arrangement of conditions for collection andanalysis data in a manner
that aims to combine relevance to the
research purpose with economy in procedure. Research Design is the conceptualstructure with in
which research in conducted. It constitutes the blueprint for the collection measurement and
analysis of data. Research Design includesand outline of what the researcher will do form
writing the hypothesis and itoperational implication to the final analysis of data. A research
design is aframework for the study and is used as guide in collection and analyzing thedata. It is
a strategy specifying which approach will be used for gatheringand analyzing the data. It also
include the time and cost budget since moststudies are done under these two cost budget since
most studies are doneunder theses tow constraints.The design is such studies must be rigid and
not flexible and most focus.

18

TYPES OF RESEARCH DESIGN :

EXPERIMENTAL RESEARCH DESIGN
EXPLORATORY RESEARCH DESIGN
DESCRIPTIVE& DIAGNOSTIC RESEARCH Exploratory Research Design:
This research design is preferred when researcher has a vague idea about the problem the
researcher has to explore the subject.
Experimental Research Design
The research design is used to provide strong basis for the existence of casual relationship
between two or more variables.
Descriptive Research Design
It seeks to determine the answers to who, what, where, when and how questions. It is based on
some previous understanding of the matter.
Diagnostic Research Design
It determines the frequency with whichsomething occurs or its association with something else.

19

DATA COLLECTIONS
The process of data collection begins after a research problem has been defined and research
design ahs been chalked out. There are two types of data
PRIMARY DATA It is first hand data, which is collected by researcher itself. Primary data is collected by various
approaches so as to get a precise, accurate, realistic and relevant data. The main tool in gathering
primary data was investigation and observation. It was achieved by a direct approach and
observation from theofficials of the company.
SECONDARY DATA it is the data which is already collected by someone else. Researcher has to analyze the data and
interprets the results. Ithas always been important for the completion of any report. It provides
reliable, suitable, adequate and specific knowledge. I took data comprise annual reports and post
records. Bank has provided meannual reports from 2004-05 to 2007-08 by help of which, I
prepared report. The valuable cooperation extended by staff members contributed a lot to fulfill
the requirements in the collection of data in order to complete
the project. Various statistical tools are applied depending on the research problem. In this study
ratio analysis, comparative financial statementsanalysis, common size statements and Trend
Analysis has been used for and interpreting the result.

20

Facts And Finding

HDFC Expects More Sops From RBI For Bank Merger
RBI is keen that all large financial institutions lend themselves to greater regulation by turning
into a bank as, globally, non-bank players in finance are seen to be engaged in shadow banking.
The last of non-government financial institutions is HDFC, the largest housing finance company.
But unlike other institutions that received a bank licence ICICI, IDBI and now IDFC
HDFC is neither constrained for resources nor for growth opportunities.
To make a merger more attractive, RBI had offered HDFC a sop by recognizing home loans on a
par with infrastructure lending, which allows it to raise funds without reserve requirements.
Since this only addresses half the problem, the HDFC group is now looking for a special
dispensation in line with what was offered to IDBI, to allow it a longer time frame to meet
reserve requirements.
HDFC has better CDR than other banks in J&K
J&K state has been recovering gradually from the economic slowdown over the years. The

economic growth has encouraged many banks to invest in the states overall development.
After establishing its base in J&K state in 2005, HDFC bank increased its branch strength to 70
ensuring wide reach the state.In the recent floods, the bank was first to resume its operation and
provide mobile banking services people.In an interview with Rising Kashmirs Sajad Kralyari,
Branch Banking Head West & North, HDFC Bank Ravi Narayanan talks about rephrasing and
rescheduling of loans to the flood-affected businessmen.

Role of HDFC bank during floods

21

In the aftermath of the devastating floods, the immediate objective was to ensure resumption of
banking

We

were

among

the

first

banks

to

make

our

branches

operational.

On September 9, when a large part of Srinagar was still under water, about 10 branches and 10
ATMs were

made

operational.Despite the extensive damage to the infrastructure, we used

VSATs across branches to ensure normal

operations.We were also among the first bank to

provide relief material/medicines to people in affected areas like Batmaloo, Bemina, Kursso
Rajbagh, Solina etc. We set up a control room at our Barzulla Branch to co-ordinate all our relief
efforts from there.
Emergency Services
Our immediate priority was to ensure that our customers have access to banking services,
through our ATMs and branches. We airlifted equipment and cash from Delhi and Jammu. Senior
officers from IT/infrastructure and administration were on the ground to help us in re-opening
branches and ATMs. We set up a dedicated toll free number for J&K customers to access
information

on

banking

services,

address

requests

and

transaction-related

queries.

We also pressed into service two mobile ATMs and stationed them across areas like Pampore,
Hari Singh High Street, Sanant Nagar.These mobile ATMs witnessed a huge rush of people and
on an average, about 800-1000 transactions were taking place at these mobile ATMs every day.

Relief to flood affected people

As a responsible corporate citizen, HDFC Bank realises the importance of providing succor and
assistance to the people of J&K in such trying circumstances. We have a multi-pronged approach
to not only help people but also our customers. We donated medicines to Help Poor Voluntary
Trust and organized free medical camp in association with them in some of the affected areas for
one week. We also distributed relief materials like blankets, woolens, clothes and utility kits
among people.Moratorium aWe have released a policy giving an option of moratorium and rephasement of loans to affected borrowers.We have nominated a Nodal Officer for channelizing
this policy in a better way. We are committed to serving the people of Valley and J&K. We stand
by them in this hour of grief.
22

Non-availability of special services

There are some services which are not available in Kashmir due to some technical problems. We
could not provide instant money transfer services through ATMs because the service was not
technologicall supported.SMS services were not available in J&K on consistent basis which
J&K.If we get all the technological support or basic infrastructure within a state the bank will
have no problem in providing all the banking facilities which are already available in major cities
in India.Now as the state government has lifted ban on SMS services, we will start providing
such services.

Participation in local economy

We have been able to find our participation in local economy in a meaningful manner.
As we realized the potential of participating in the local economy, we jumped into it with good
products and services and expanded our branch strength.There has been restrained growth during
six to eight years but it has done exceptionally well since the beginning of 2011.We just had
two years to understand the local economy and we infused credit into various economic sectors
in J&K. our CDR was just 40 per cent two years back which has grown to 51 per cent. Our
robust growth in the state over the past few years has been as a result of the hassle-free services
provided to customers.We not only have efficient services but our products are also best and a
customer is seamlessly sitting in his room and getting all kinds of banking services.
We want to help local economy grow. The growth of economy in Kashmir is encouraging and we
can act as strong facilitators.

Better CDR than other banks

23

Our CRD lifted as we provided best services even when there was disturbance in the summers of
2008 and 2010 in Kashmir.We have received lot of appreciation from our customers and
weprovided

services

even

when

there

were

curfews

and

strikes.

Even though, most of our branches are young and not more than two or two-and-half-year
old,our current CDR in J&K stands at 51 per cent.Our CDR in Kashmir is 40 per cent and while
it is 65 per cent in Jammu.It is comparatively higher than other banks including SBI, J&K Bank.
It is really appreciable that our CDR is better than local J&K Bank.
Branch Strength

Right now we have 70 operational branches and 160 ATMs that have been established mostly
during last three years. We just had 10 branches in J&K in February, 2011.
During three years of time our branch strength has grown seven times in J&K while as in other
states like Chhattisgarh branches have seen six time increase and in Goa it has increased just by
three. We must also thank regulators for liberalizing branch authorization policy and left it to
the wisdom of bank to distribute the footprints.

Customized products for Kashmir

We want to make Kashmir centric products for the sector like handicrafts, horticulture. We
identified segments for small handicraft makers so that we have products for them. We have
taken a quantum leap in returning back the trust the local customers have reposed on us. We will
soon participate in some of the government sponsored schemes so that we infuse more credit for
the local investors.
Local manpower

24

We take pride in the fact that most of our employees are the sons of the soil. We have currently
employed around 1200 people of the state in our branches and it is a matter of great satisfaction
for us. Many of the local employees have performed better and have risen to good managerial
levels in the bank. We give emphasis to meritocracy and have seen many senior supervisors
from Kashmir.

Dealing with bad debtors

We have fairly strong central credit appraisal mechanism rather than branch mechanism. If there
is stress in any credit repayment, we educate and council customer. We try to understand the
customer needs and help him find solutions.

CSR in Kashmir
Social development and employment generation is the biggest CSR that an organization can
achieve. We have participated with local NGOs for some works in Kashmir. In Ladakh, we have
partnered with another NGO and helped in setting up library in Leh. Whenever we find
opportunity,

During floods, we organized medical and relief camps to pay back to people and

customers as part of social responsibility.

HDFC Bank sets Guinness World Record

HDFC has created a new Guiness World Record. The Annual Blood Donation Drive organised
by the bank in December 2013 has been recognised as the largest effort of its kind across the
globe."The largest blood donation (multiple venues) involved 61,902 participants and was
25

achieved by HDFC Bank Ltd. (India), with 1,115 blood donation camps held across 709
locations in India on December 6, 2013," states the official citation from Guiness World Record.
Aditya Puri, MD, HDFC Bank said that sustainability is a core value at the Bank and the blood
drive is one of many such initiatives that focus on this value.
Among other sustainability initiatives, HDFC Bank also provides access to finance and skills
training to families at the Bottom of the Pyramid, and access to education and financial literacy,
which is the life-blood of financial independence. They aim to cover 10 million people to be
moved from below poverty line to above the poverty line in the next 2-3 years.
Further, the Bank is also tying up with universities to enable students pursue industry-ready
courses and secure employment. For instance, courses such in areas like foreign exchange,
technology and wealth management will be taught by faculty who have been trained by the
Bank.
Once the students complete the course and pass a test, they will be given jobs. Puri explained
that apart from HDFC Bank, the students have also have been employed by other corporates.
Private sector bank, HDFC Bank has created a new Guinness World Record. The annual blood
donation drive organized by the bank in December 2013 has been recognized as the largest effort
of its kind across the globe.
"The largest blood donation (multiple venues) involved 61,902 participants and was achieved by
HDFC Bank Ltd. (India), with 1,115 blood donation camps held across 709 locations in India on
December 6, 2013", states the official citation from Guinness World Record.
This unique record was possible only due to the support of the volunteers that came forward to
be a part of the campaign. Through this campaign which is now in its seventh year, HDFC Bank
is providing a critical resource for sustaining lives which is blood.

Features

26

A 'with profits' regular premium paying endowment plan to safeguard the financial
interests of your loved ones in your absence

Provides additional protection with Inbuilt Accidental Death Cover enhancing your
familys security

Regular savings over a long period ensures that a corpus is built to meet financial goals at
various life stages

Option to buy policy without going for medicals by just filling Short Medical
Questionnaire
Know more

Benefits

On Maturity get Sum Assured plus accrued bonuses

Flexibility to choose policy term from 15 to 30 years

Boost your maturity benefits with revisionary bonus and terminal bonus, if any.
HDFC Savings account HDFC Savings account
HDFC Savings accounts are primarily meant to inculcate a sense of saving for the future,
accumulating funds Over a period of time. Whatever your occupation, HDFC is confident that
you will find the perfect banking Solution.
USPs Of HDFC BANK
CBS Branch &Issue of PAP Cheques ( Payable at Par) by default Up to a limit.
Free RTGS/NEFT Transactions.
Sweep in- Sweep out facility.
Special Womens Advantage Debit Card that offers women products at special prices.
The leading credit card issuers in India .

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Hdfc credit card

offers you the best rates and more discounts.
The only provider of Forex Products & services
Option to invest in Mutual Funds.
Convenient & Hassle free banking options like installers.
IVR facilities such as Phone banking, Net banking, Mobile banking free for all products.
Flexible Lunch timings provide uninterrupted services to HDFC customers.

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Problems Of Hdfc Bank

Money laundering allegations
On 14 March 2013 an online magazine named Cobrapost.com released video footage
from Operation Red Spider showing high-ranking officials and some employees of HDFC bank
and two other leading banks, willing to turn black money into white, a violation of Money
Laundering Control Act.
Following the release of the footage, the Government of India and RBI ordered an inquiry. The
banks under question also conducted investigations of their own. HDFC appointed Deloitte
Touche Tohmatsu to conduct a forensic inquiry. The bank also appointed Amarchand &
Mangaldas & Suresh A Shroff & Co (AMSS), a law firm based in India, to investigate in
association with the internal departmental inquiry, the breaches in the banks code of conduct and
ethical standards by the officials involved. On March 16, 2013, HDFC released a statement
announcing the suspension of over 20 employees involved in the videotape to ensure fair and
unbiased investigation process.
The RBI forensic investigation did not reveal any prima facie evidence for the allegations of
money laundering. Deputy Governor at RBI, K.C. Chakra barty, said in an interview that no
transactions had taken place. The Executive Director of HDFC, Paresh Sukthankar, also
confirmed that their investigations revealed the same on April 24, 2013, The issue is being
reviewed and investigated from multiple quarters. Clearly, all the investigations have shown that
there have been no instances of transactions actually taking place. Our belief is that the existing
processes seem to have worked in not allowing these transactions to happen.
However, RBI investigations revealed violations of KYC (Know Your Customer) norms, for
which the three banks were imposed penalty, with Rs. 4.5 crores imposed on HDFC.

29

Money laundering case: HDFC Bank suspends 20 employees pending investigation

MUMBAI: HDFC Bank, the country's second largest private sector bank has suspended around
20 employees pending enquiry into the allegations made by Cobrapost representatives, stating
that the bank employees are encouraging customers to evade income tax payments. The sting
operation by Cobrapost.com, an online news provider, claimed that staff at ICICI Bank, HDFC
Bank and Axis Bankwere helping customers do deals that violate income-tax, enforcement and
banking laws.
xis Bank earlier directed 16 of its staff caught in sting operation that suggested violation of
various laws, HDFC Bank hired auditors Deloitte Touche Tohmatsu India Pvt Ltd to audit the
branches, and ICICIsuspended 18 pending the outcome of an internal inquiry.
``Axis Bank's internal enquiry is already underway to look in to all aspects of the matter and the
findings are expected shortly,'' a statement said. ``Pending the enquiry, the Bank has advised 16
concerned employees to report to respective administrative offices. A senior level committee has
been constituted to monitor and supervise the entire investigation process on a daily basis.''
The top private banks and various investigating agencies, including the regulator Reserve Bank
of India are probing whether the banks and their staff helped people evade taxes, siphon off
funds and help launder money. The probe follows a sting operation by Cobrapost.com., an online
news provider, which showed bankers suggesting ways to circumvent law.
The country's second largest private sector bank, HDFC Bank has hired Amarchand &
Mangaldas & Suresh A Shroff & Co to examine the breaches, if any of the bank's code of
conduct & ethical standards, by any bank officials.

30

``The bank will also conduct special audit of some of its branches, where the reported
videotaping was done. This is being done without prejudice to the authentication of the video
recordings or electronic data,'' HDFC Bank said.
The Bank is also detailing the efficacy of induction and ongoing training provided for ingraining
ethical behaviour and conduct rules, as preventive and protective measures.
Rajiv Tukru, secretary, department of financial services, said that the government would come up
with strict penalties if these banks were found violating guidelines.
``All government agencies and regulators are working together to probe charges. In case
violations are found, there would be a very severe reaction and we would come down with a very
heavy hand,'' said Tukru.
The internal and external audits and inspections undertaken previously, and the action taken
reports in this regard are being compiled and reviewed once again, to enable the Bank to reiterate
that the internal checks and balances and processes for ensuring compliance with KYC norms
and for prevention and detection of, and protection against money laundering activity are robust
and adequate,'' said the bank.

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Data Analysis
Primary Data:
The primary data was collected from the Area Office of LICHFL, Hyderabad
and HDFC Main Branch, Hyderabad. Also data was collected from the branches of
LICHFL & HDFC located in Hyderabad. The data was collected from the LICHFL &
HDFC from selected loan applicants through a structured questionnaire based on the
rational construct criteria. The questionnaire is presented to a sample of 500
respondents representing the cross section of the society from LICHFL and HDFC.
Secondary Data:
The sources of secondary data include Annual Reports, manuals, official
records, and other published sources pertaining to LICHFL & HDFC.
Informal discussions held with the borrowers and officials to elicit the
information with a view to gain deeper in-sights into the operational aspects of
housing finance in the selected areas of the study.
Limitations of the study
The following are the limitations of the study
1.The study was based on the perception of customers of only five branches of State Bank of
India in Coimbatore district.
2.The study concentrates only on qualitative aspects.

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3.Non-probability convenience sampling technique was applied in the selection of bank

customers.

33

34

Questionnaire
Personal Detail:Name :
Occupation
Mobile no
Address
Educational Qualification :
a) Illiterate
b) School
c) UG
2 Have you visited your branch in the last year?
1. yes 2. no
3.Approximately how many times have you visited your branch in last 3 months:
1. First time 2. 4 9 time 3.never
4.BRANCH FACILITIES
How satisfied were you with the following aspects of the branch facility?
Very
satisfied

Satisfied Neutral Dissatisfied

Clean & well cared facilities

Efficient, no wait service
No long line ups at counter

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Very
dissatisfied

Availability of information
brochures
Pleasant & attractive decor
Automatic bank machines in
convenient locations

5.STATEMENTS AND MAILED DOCUMENTATION

Do you receive statements monthly?
Yes

No

6.In terms of your expectations regarding mailed statements, please indicate your
satisfaction with the following.
Very satisfied Satisfied Neutral Dissatisfied Very dissatisfied
Sent out reliably and on time
Complete record of transactions
Accurate
Easy to read and understand

7.LOAN/MORTGAGES
Have you applied for credit (a loan, line of credit or mortgage) in the last year?
Yes
No
In terms of the service you recieved from the lending officer(s), how satisfied were you
36

with the following?

Very
Very
Satisfied Neutral Dissatisfied
satisfied
dissatisfied
Friendly and courteous
manner
Knowledge of bank's products
& Services
Willingness to listen and
respond to your need
Fast and efficient service
Recognition of you as valued
customer
Available to customers when
needed
Offer of other services or
alternative means to meet
your needs

8.MUTUAL FUNDS
In terms of the service you received from the Bank's mutual funds representatives, please
rate the following criteria.
Very
Very
Satisfied Neutral Dissatisfied
satisfied
dissatisfied
Friendly and courteous manner
Knowledge of bank's mutual fund
products & Services
Willingness to listen and help
identify your need
Provide guidance and advices
Recognition of you as valued
customer
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Offer of other services or alternative

means to meet your needs
Have you contacted your branch by telephone in the last year?
1. YES 2. NO
.

Approximately how often do you contact the branch by telephone in a year?

Never

1-3 times

4-9 times

10-19 times

20 or more times

9.FINAL REMARKS
Would you like to be contacted by a bank representative?
Yes
No

Would you recommend this branch to a friend or business associate?

Yes

Maybe

No

10.Why would you not recommend this branch?

11. Your complete satisfaction is very important to us. Would you like someone from the
bank to contact you?
No thanks
Yes please

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Your contact Information

optional
Your Name:
Phone number:

Conclusion
The main objective of the current study is to find the interrelationships between service quality,
customer satisfaction and customer loyalty in the retail banking sector in Bangladesh. The study
sought to identify the most important attributes in bank settings, which may be used to review
characteristics of the banks as experienced by customers.Based on hypothesis H1aa and H1a0, a
medium positive correlation was found between tangibility and customer satisfaction. It means
that as banks tangibility increase, customer satisfaction also increases. According to hypothesis
H1ba and H1b0, reliability and customer satisfaction has medium positive correlation. This
positive relation means that as bank employees performance and reliability increase, customer
satisfaction also increases. Hypothesis H1ca and H1c0 demonstrate the medium positive
correlation between responsiveness and customer satisfaction. It means that as the willingness
and ability of bank employees increase, customer satisfaction also increases. Hypothesis H1da
and H1d0 shows the large positive correlation between assurance and customer
Applications and Discussion of Findings
The applicability of the SERVQUAL measure is well established in the retail banking industry.
Angur et al.(1999) stated that SERVQUAL instruments are the best measure of service quality
perceptions in the retail banking industry in developing country. The current study also uses the
SERVQUAL instruments to measure the service quality perceptions in the retail banking sector
39

in Bangladesh. This study uses the SERVQUAL model to determine the relative importance of
each of the service quality attributes which influence customer overall quality perceptions.
The hypotheses test confirms that all the service quality attributes are positively correlated with
customer satisfaction. Empathy shows the highest positive correlation with customer satisfaction
and Assurance demonstrates the second highest positive correlation with customer satisfaction.
Tangibility reveals the least positive correlation with customer satisfaction. A large positive
relationship between customer satisfaction and customer loyalty was demonstrated in the
hypotheses test. The discussion of the findings is as follows:
Empathy
Service customers often have expectations with regard to the extent to which the service provider
appears to understand and be concerned about their individual needs and wants. The more the
service provider can see things from the customers point of view, the better. The core concept of
empathy is to understand the needs of
References list
www.google.com
www.yahoo.com
Ahmed, I., Nawaz, M., Usman, A., Shaukat, M., Ahmad, N., and Iqbal, H. (2010). Impact of
Service Quality on
Customers' Satisfaction: Empirical evidence from telecom sector of Pakistan. Interdisciplinary
Journal of
Contemporary Research in Business,

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