Introduction To Banking Services

Auditing

Semester V

(2015-2016)

Submitted

In partial fulfillment of the requirement of

Bachelors of Banking & Insurance

Submitted by,

Miss. Khushbu Devendra Pant

Roll no. 26

Under the guidance of

Prof. Shweta Deshmukh

Guru Nanak Khalsa College of Arts, Science & Commerce,

Matunga, Mumbai-400019.
 Guru Nanak Khalsa College of Arts, Science & Commerce,

Matunga, Mumbai-400019.

CERTIFICATE

This is to certify that Miss. Khushbu Devendra Pant , of TYBBI Semester V

(2015-2016) has successfully completed the project on Introduction to
Banking Services under the guidance of Prof. Shweta Deshmukh.

Course coordinator Principal

(Prof. Allan D’souza)

Project Guide/ Internal Examiner

( Prof. Shweta Deshmukh)

 DECLARATION

I Miss Khushbu D. Pant student of TYBBI Semester V (2015-2016) hereby

declare that I have completed the project on Introduction To Banking

Services. The information submitted is true and original to the best of my

knowledge.

Signature of student

Miss Khushbu D. Pant

Roll no. 26
 ACKNOWLEDGEMENT

The college, the classmate and the atmosphere, in the college were all right

from the point when the topic was to be selected till the final copy was

prepared. I feel privileged to take this opportunity to put on record my

gratitude towards them.

Prof. Shweta Deshmukh made sure that the resources were available in

time and also for immediate advice and guidance throughout making this

project.
 INDEX

CHAPTER TOPIC PAGE

NO. NO.
Chapter Introduction to banking services
no.1
1.1 banking services
1.2 Banking activities
1.3 Dimensions of service quality
1.4 Objective of the study
1.5 Scope of the study
1.6 Limitation of the study
1.7 Research methodology
1.8 Research sample

Chapter no. REVIEW OF THE LITERATURE

2
2.1 History of NRI banking
2.2 What is NRI banking?
2.3 Type of NRI account
2.4 Difference between accounts
2.5 Benefits of holding NRI banking

Chapter no. BANK’S PROFILE

3
3.1 Bank’s introduction
3.2 Services and products offered by the HDFC bank
3.3 Branches of HDFC bank
3.4 Key business segment caters by HDFC bank
3.5 Awards and achievements-banking services
3.6 Credit ratings
3.7 Corporate ratings

Chapter no. FINDINGS

4
4.1 Analysis of the data collected from the survey
conducted on the bank
Chapter no. Observations and suggestions
5
Chapter no. Conclusion
6
Bibliography
 CHAPTER 1

INTRODUCTION TO BANKING SERVICES

Banking is the business activity of accepting and safeguarding money owned by

other individuals and entities, and then lending out this money in order to earn a
profit. However, with the passage of time, the activities covered by banking
business have widened and now various other services are also offered by
banks. The banking services these days include issuance of debit and credit
cards, providing safe custody of valuable items, lockers, ATM services and
online transfer of funds across the country /world.

It is well said that banking plays a silent, yet crucial part in our day-to-day
lives. The banks perform financial intermediation by pooling savings and
channelizing them into investments through maturity and risk transformations,
thereby keeping the economy’s growth engine revving.

Banking business has done wonders for the world economy. The simple
looking method of accepting money deposits from savers and then lending the
same money to borrowers, banking activity encourages the flow of money to
productive use and investments. This in turn allows the economy to grow. In the
absence of banking business, savings would sit idle in our homes, the
entrepreneurs would not be in a position to raise the money, ordinary people
dreaming for a new car or house would not be able to purchase cars or houses.

1
 BANKING SERVICES

Banking covers many services, these basics services have always been
recognized as the hallmark of the genuine banker. These are:

 The receipts of the customer’s deposits.

 The collection of cheques drawn on the other banks.
 The payment of the customer’s cheques drawn on himself.

There are various types of banking services like:

 Advances-overdraft, cash credit, etc.

 Deposits- saving account, current account, etc.
 Financial services- bill discounting, etc.
 Foreign services- providing foreign currency, travelers cheques, etc.
 Money transmission- fund transfer etc.
 Savings- fixed deposits, etc.
 Services of place or time- ATM services.
 Status- debit cards, credit cards, etc.

2
 SERVICE ACTIVITIES

Service activities of banks may be categorized as follows:

 Agency services
 General services

 AGENCY SERVICES
 Collection of cheques, drafts, and bills of exchange on behalf of
customers.
 Collection of dividend and interest warrants of customers.
 Collection of pension of government employees.
 Purchase and sale of securities on the instructions of customers.
 Executing standing orders for payment of rent, electricity bill,
insurance premium etc.
 Acting as correspondent or representative of customers in dealing
with other banks.
 Acting as a trustee or executor when so nominated

3
  GENERAL SERVICES
 Issue of letter of credit, traveler’s cheques and circular notes.
 Safe custody of valuable gold, jewellery and important documents in safe
deposit vaults (lockers) available on hire.
 Supply of trade information.
 Acting as a referee as regards financial status of customers.
 Acceptance of bills of exchange on behalf of customers.
 Underwriting loans floated by government and public bodies.

4
 DIMENSIONS OF SERVICE QUALITY:

The most popular dimensions of services quality-features five dimensions:

Tangibles, reliability, responsiveness, empathy, and assurance. The

tangibles dimensions corresponds to the aforementioned physical environment
aspect, the reliability dimensions corresponds to the service outcome aspect, and
the remaining three represents aspects of interaction quality. Both the costs and
the revenue of firms are affected by repeat purchases, positive word-of-mouth
recommendation, and customer feedback. Moreover, there is strong evidence
that service quality has either a direct influence on the behavioral intentions of
customers and/or an indirect influence on such intentions, mediated through
customer satisfaction.

5
 DIMENSIONS OF SERVICE QUALITY

RESPONSIVENESS

TANGIBILITY RELIABILITY

EMPATHY ASSURANCE

DIMENSIONS OF SERVICE QUALITY:

TANGIBILITY: This dimension deal with modern looking equipments and

visual appealing part of banks.

6
RELIABILITY: This dimension has a direct positive effect on perceived
service quality and customer satisfaction in banking institutions. Banks must
provide error free service and secure online transactions to make customers feel
comfortable.

RESPONSIVENESS: Customers expect that the banks must respond their

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

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

EMPATHY: individual attention, customized service and convenient banking

hours are very much important in today‟ s service.

In order to achieve better understanding of service quality in banking sector, the

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

7
OBJECTIVE OF THE STUDY:

The above study is conducted with the following objectives by the research.

The objective of the study is as follows:

 To find out which all services are used by NRI customers.

 To find out the perception of the customers from the service quality
offered by the banks.
 To explore the NRI banking services of HDFC BANK.
 To find out the satisfaction level of the NRI customers.
 To make suggestions, if any, based on the study.
 To recognize the lacunae in the system and thus make suggestions for
better performance and success.

SCOPE OF THE STUDY:

The study would try to throw some insights into the existing services provided
by the bank.

The present study is restricted to “use of banking services” among the

people/NRI customers. The study will help to find the gap between the bank and
their customers.

It will also bring to light the perception of the customers of the bank regarding
the awareness and demand of various services presently offered by the bank to
its NRI customers.

8
LIMITATIONS OF THE STUDY:

In spite of best efforts to minimize all limitations that might creep in course of
the research, there were certain constraints within which the research was
completed. These are discussed below –

 The study is geographical limited to Mumbai city.

 The survey is conducted on small number of people.
 For primary data, non response error cannot be ruled out.
 The findings cannot be treated as representative of the entire banking
industry of HDFC BANK.
 The respondent may give biased answers for the required data.

9
 RESEARCH METHODOLOGY

A structure questionnaire was prepared. The questionnaire contains 20

questions which reflect on the type and quality of service that are provided by
the HDFC BANK to its NRI customers. Accordingly the research was
conducted among 10 respondents selected on random basis from the selected
areas. The questionnaire was administered to them who filled in the
information. The respondents were briefly interviewed. The filled up
information was later analyzed to obtain the required interpretation and the
findings.

The data collected was suitable for graphical representation and on the basis of
this observations were made and finally reduced to findings.

The collected data can be divided in two categories. They are as follows:

1) Primary Data

2) Secondary Data

10
  PRIMARY DATA:

The primary data was collected by means of a survey. Primary data was
collected from NRI customers of the HDFC BANK by interviewing through the
questionnaire directly.

 SECONDARY DATA:

In order to have a proper understanding of the services to its NRI customers of

bank in depth study was done from the various sources such as books, a lot of
data is also collected from the official websites of the banks and the articles
from the various search engines like Google, yahoo search. This helped to get
study material easily.

RESEARCH SAMPLE

SAMPLING PLAN:

Since the study is related and independent on the primary data source an
effective plan of sampling is designed for the purpose of the study.

 Sampling units: Customers of HDFC bank.

 Sample technique: Random sampling.
 Research instrument: structured questionnaire.
 Contact method: personal interaction.

11
SAMPLING SIZE:

The survey was conducted in the city of Mumbai with only one branch
(SANDOZ HOUSE) of HDFC bank, with 10 customers as respondent.

12
 CHAPTER 2

REVIEW OF THE LITERATURE

HISTORY OF NRI BANKING

In order to provide a safe haven for the incomes earned by Indians, who work in
foreign countries, Government of India in association with RBI launched NRI
banking services in 1970. This is a special banking service offered only to those
Indian citizens, who work or hold business outside the country, and are looking
forward for a banking channel for savings and remittances.

In India banking terminology, the term NRI Account refers to funds deposited
by a Non-Resident Indian or NRI with a financial institutions authorized by the
Reserve Bank of India to provide such services. A Non-Resident Indian is an
Indian citizen who primarily resides outside of India.

13
WHAT IS NRI BANKING?

• To meet the specific needs of non-resident Indians related to their remittances,

savings, earnings, investments and repatriation, the Government of India
introduced in 1970 Non-Resident (External) Account Rules which are governed
by the Exchange Control Regulations.

• The Foreign Exchange Management Act, 1999 determines the laws regulating
foreign exchange and enlists the various deposit schemes available to Non-
Resident Indians.

Based on the underlying currency and mode of use, NRI Banking permits 3
types of accounts, which are available with private as well as public sector
banks. All of them are governed by Exchange Control Regulations.

Who qualifies as a Non-Resident Indians (NRI)?

An NRI is a person residing outside India but who is a citizen of India or is a

person of Indian origin. Under the Foreign Exchange Management Act
(FEMA), generally, a person is residing outside India if the Person is in India
for less than 182 days during the course of the preceding financial year and also
includes any person who stays abroad:

14
 for employment, or
 for carrying on any business or vocation, or
 for any other purpose indicating an intention of stay outside India for an
uncertain period
 for education*
* provided the student has stayed overseas for more than 182 days in the
preceding financial year

TYPES OF ACCOUNT OF NRIs

 NRE
 NRNR
 FCNR (B)
 NRO

 NRE ACCOUNT:

NRI are permitted to maintain Non Resident External Rupee account

with Banks / Authorised dealers. In this account they may have permitted
credits like transfers from other account, refunds, share / debenture
refunds etc. If there is a credit other then permitted credit, they have to
obtain approval from RBI. They can also make permitted debits including
local payments. Account can be of any type – savings / current.

15
 FCNR (B) ACCOUNT:

It is called Foreign Currency Non Resident bank account. This account

can be in rupee or in designated currencies. Debits and Credits are as per
RBI guidelines generally repatriation is not permitted from this account.
Besides NRIs, Overseas Corporate Bodies can also open this account.

 NRNR ACCOUNT:

Non resident non-repatriation account – this can be opened by any NRI

(non-resident Indian) – repatriation is not permitted. Debits and credits as
per RBI approved modes are permitted.

 NRO ACCOUNT:

Non Resident Ordinary Account – debits and credits to permitted heads

only (as per RBI rules). When an Indian goes out of India, his ordinary
account will convert into NRO account. Repatriation is not permitted
from this account.

16
  RFC ACCOUNT Resident Foreign Currency Account :

When NRIs / PIOs return back to India, they may maintain their foreign
exchange / currency in Resident Foreign currency account. They may get
their NRNR / NRO / FCNR account into RFC account.

PIO= persons of Indian origin

FEMA guidelines As per Foreign Exchange Management Act Indian

authorised dealers must ensure that no Indian is bringing any money from any
non-resident. Authorised dealers must also ensure that only permitted debits and
credits are allowed. If any money is repatriated out of India, it was earned /
brought from out of India. At the same time NRIs are permitted to have foreign
currencies as per their requirements as per law.

17
 BANK ACCOUNTS

Non-Resident Foreign Non-Resident

(External) Rupee Currency Ordinary
Account (Non-Resident) Account
Bank Account
Popularly NRE Account FCNR (B) NRO Account
known as Account
Currency in Rupees Rupees Pound sterling,
which the US Dollar,
account can be Deutsche Mark,
maintained Japanese Yen,
Euro
Who can open NRI/PIO NRI/PIO Any person
Resident
outside India(
i.e. even
foreigners)
Type of account Current account, Term (fixed) Current
savings account, deposit period account, savings
recurring of fixed deposit account,
deposits, fixed is between 1 recurring
deposits and 3 years deposit, fixed
only. deposit
Joint accounts Only between Only between Account be held
NRIs/ PIOs NRIs/PIOs jointly with
residents.
When the Non-  Account to NRI can ask for Account to be
Resident be re- redemption of re-designated as
becomes a designated the deposit, or Resident
Resident as Resident deposit is Account i.e.
Account allowed to normal bank
i.e. normal continue till its account in
bank due date and India.
account in then redeemed
India, deposit is
Or converted into
 Funds in resident Foreign
the Currency
accounts Account on
can be maturity.
transferred
to Resident
Foreign
Currency
Account

19
 BENEFITS OF HOLDING NRI ACCOUNT

 It is account, which is ideal for Indians residing abroad.

 In case of NRE Account, the currency to be maintained is Indian rupee
and the interest earned on savings is not taxable.
 Balances held in the account as well as interest accrued on the deposit are
exempt from Wealth Tax in India.
 Interest on the deposits is free of Indian Income Tax.
 Loan is available against the deposits as per extant RBI guidelines from
time to time.
 Use of NRE/FCNR is obligatory for channelizing funds for all repatriable
investments in India (including investments in shares and securities).
 NRI Banking offers you various mediums to invest such as NRE/NRI
savings accounts, fixed deposits, recurring deposits, home loans and easy
money transfer options helping your family.

20
 CHAPTER 3

BANK’S PROFILE

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 RBI's
liberalization of the Indian Banking Industry in 1994. The bank was
incorporated in August 1994 in the name of 'HDFC Bank Limited', with
its registered office in Mumbai, India. HDFC Bank commenced
operations as a Scheduled Commercial Bank in January 1995.

HDFC bank comprises of a dynamic and enthusiastic team determined to

accomplish the vision of becoming a World-class Indian bank. HDFC
BANK’s business philosophy is based on our four core values- Customer
Focus, Operational Excellence, Product Leadership and People. They
believe that the ultimate identity and success of their bank will reside in
the exceptional quality of people and their extraordinary efforts. They are
committed to hiring, developing, motivating and retaining the best people
in the industry.

22
 SERVICES AND PRODUCTS OFFERED BY HDFC
BANK

 Accounts And Deposits

 Loans
 Cards
 Demat
 Investments
 Insurance
 Forex
 Premier Banking
 Private Banking
 Research Reports
 Money Transfer
 Payment Services
 Ways To Bank

23
 BRANCHES OF HDFC BANK

HDFC Bank is headquartered in Mumbai. As of June 30, 2015, the Bank’s

distribution network was at 4,101 branches. All branches are linked on an online
real-time basis. Customers across India are also serviced through multiple
delivery channels such as Phone Banking, Net Banking, Mobile Banking and
SMS based banking. The Bank’s expansion plans take into account the need to
have a presence in all major industrial and commercial centres, where its
corporate customers are located, as well as the need to build a strong retail
customer base for both deposits and loan products. Being a clearing / settlement
bank to various leading stock exchanges, the Bank has branches in centres
where the NSE / BSE have a strong and active member base.

The Bank also has a network of 11,962 ATMs across India. HDFC Bank’s
ATM network can be accessed by all domestic and international Visa /
MasterCard, Visa Electron / Maestro, Plus / Cirrus and American Express
Credit / Charge cardholders

24
 KEY BUSINESS SEGMENTS CATERS BY HDFC BANK

HDFC Bank caters to a wide range of banking services covering commercial

and investment banking on the wholesale side and transactional / branch
banking on the retail side. The bank has three key business segments:

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

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

RETAIL BANKING

The objective of the Retail Bank is to provide its target market customers a full
range of financial products and banking services, giving the customer a one-stop
window for all his/her banking requirements. The products are backed by
world-class service and delivered to customers through the growing branch
network, as well as through alternative delivery channels like ATMs, Phone
Banking, Net Banking and Mobile Banking.

26
The HDFC Bank Preferred program for high net worth individuals, the HDFC
Bank Plus and the Investment Advisory Services programs have been designed
keeping in mind needs of customers who seek distinct financial solutions,
information and advice on various investment avenues. The Bank also has a
wide array of retail loan products including Auto Loans, Loans against
marketable securities, Personal Loans and Loans for Two-wheelers. It is also a
leading provider of Depository Participant (DP) services for retail customers,
providing customers the facility to hold their investments in electronic form.
HDFC Bank was the first bank in India to launch an International Debit Card in
association with VISA (VISA Electron) and issues the MasterCard Maestro
debit card as well. The Bank launched its credit card business in late 2001. By
March 2015, the bank had a total card base (debit and credit cards) of over 25
million. The Bank is also one of the leading players in the "merchant acquiring"
business with over 235,000 Point-of-sale (POS) terminals for debit / credit cards
acceptance at merchant establishments. The Bank is well positioned as a leader
in various net based B2C opportunities including a wide range of internet
banking services for Fixed Deposits, Loans, Bill Payments, etc.

27
 AWARDS AND ACHIEVEMENTS – BANKING SERVICE

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 product
quality and service excellence would help us get there. Today, they are proud to
say that we are well on our way towards that goal.

It is extremely gratifying that their efforts towards providing customer

convenience have been appreciated both nationally and internationally.

HDFC Bank is the newly crowned winner of this year’s BEST ASIAN BANK
AWARD, a standout among the 15 winners of 2015 FINANCEASIA’S
COUNTRY AWARDS programme for generating high growth and steady
profitability as well as maintaining a low non-performing loans ratio and high
asset quality.

28
 CREDIT RATING

HDFC Bank has its deposit programmes rated by two rating agencies - Credit
Analysis & Research Limited (CARE) and Fitch Ratings India Private Limited.
The bank's Fixed Deposit programme has been rated 'CARE AAA (FD)' [Triple
A] by CARE, which represents instruments considered to be "of the best
quality, carrying negligible investment risk".

CARE has also rated the bank's Certificate of Deposit (CD) programme "PR
1+" which represents "superior capacity for repayment of short term promissory
obligations". Fitch Ratings India Pvt. Ltd. (100% subsidiary of Fitch Inc.) has
assigned the "tAAA ( ind )" rating to the bank's deposit programme, with the
outlook on the rating as "stable". This rating indicates "highest credit quality"
where "protection factors are very high".

HDFC Bank also has its long term unsecured, subordinated (Tier II) Bonds of
Rs.4 billion rated by CARE and Fitch Ratings India Private Limited. CARE has
assigned the rating of "CARE AAA" for the Tier II Bonds while Fitch Ratings
India Pvt. Ltd. has assigned the rating "AAA( ind )" with the outlook on the
rating as "stable". In each of the cases referred to above, the ratings awarded
were the highest assigned by the rating agency for those instruments.

29
 CORPORATE GOVERNANCE RATING

The bank was among the first four companies, which subjected itself to a
Corporate Governance and Value Creation (GVC) rating by the rating
agency, the Credit Rating Information Services of India Limited
(CRISIL).

The rating provides an independent assessment of an entity’s current

performance and an expectation on its “balanced value creation and
corporate governance practices” in future. The bank has been assigned a
‘CRISIL GVC Level 1’ rating, which indicates that the bank’s capability
with respect to wealth creation for all its stakeholders whole adopting
sound corporate governance practices is the highest.

30
 CHAPTER 4

FINDINGS

ANALYSIS OF THE DATA COLLECTED FROM THE

SURVEY HELD ON THE HDFC BANK (SANDOZ
HOUSE)

The survey included 10 customers of the bank. It included both male and
female. The survey was conducted on few selected number of customers. The
customers were from different age, occupations, religion. The customers
included businessman, professionals, self- employed, and serviceman.

The survey sheet or the questionnaire was held to customers who filled in the
information. The information was regarding their banking activities and general
awareness related to bank which was the main motive behind to conduct the
survey.

The questionnaire included 20 questions. The customers were supposed to tick

any one of them in each question as their answer.

Observations or findings were derived after carefully analyzing the

questionnaire. This survey will help us to find the banking habits of the people
of this bank.

Followings are the analysis of the data collected from the survey conducted on
HDFC bank’s customers.

31
1. Gender

The table shows the gender of the customers who were included in survey.

Female customers Male customers Total number of

customers

4 6 10

DIAGRAMATICAL REPRESENTATION:

GENDER

FEMALE-4

MALE-6

INTERPRETATION:

From the above table it can be observed that out of 10 respondents, the number
of female respondents were 4 whereas the number of male respondents were 6.

32
2. The table shows the current residence of the respondents.

Country Respondent
Usa 2
Dubai 2
Australia 2
Hong kong 1
Belgium 1
South Africa 1
Canada 1

DIAGRAMATICAL REPRESENTATION:

COUNTRY OF RESIDENCE

USA-2
DUBAI-2
AUSTRALIA-2
HONG KONG-1
BELGIUM-1
SOUTH AFRICA-1

Interpretation:

The respondents were from different countries as they were NRI customers.

33
3. The table shows the profession of the NRI customers.

Profession Respondents
Business & finance 2
Professional 1
Self employed 2
Service 5

DIAGRAMATICAL REPRESENTATION:

PROFESSION

BUSINESS & FINANCE-2

PROFESSIONAL-1
SELF EMPLOYED-2
SERVICE-5

INTERPRETATION:

From the above pie chart it is concluded that majority of respondent belonged to
service category with 5 respondent whereas 1 respondent is a professional, the 2
respondent hailed from business and finance and the rest 2 were self employed.

34
4. The table shows the type of account the respondent has maintained with the
bank.

Type of account No. of respondent

NRE 6
NRO 4
FCNR Nil

DIAGRAMATICAL REPRESENTATION:

TYPE OF ACCOUNT

NRE-6
NRO-4
FCNR-NIL

INTERPRETATION:

From the survey conducted it shows that 6 respondent had maintained NRE
account whereas the rest 4 respondent had NRO account. There were no FCNR
customers.

35
5. The table shows the type of accounts the NRI respondents are using.

ACCOUNTS USED BY RESPONDENT

SAVINGS ACCOUNT-9

CURRENT ACCOUNT-NIL

DEPOSISTS-NIL

RECURRING ACCOUNT-1

ACCOUNT FOR RETURNING

INDIANS-NIL

INTERPRETATION:

From the above pie charts it is observed that the most of the respondents, 9
respondents, use savings account for saving purpose and the rest 1 respondent
use recurring account according to their need.

36
6. The table shows how the NRI customers operate their account.

MODE OF OPERATING ACCOUNT

NET BANKING-5
IN PERSON-NIL
PHONE BANKING-3
OTHER-2

INTERPRETATION:

From observing the above pie chart it is concluded that the 5 respondents
operate their account with the help of net banking whereas 3 respondent uses
phone banking and the rest two respondents used proxy holder and authority
letter hand over to operate their accounts.

37
7. The table shows if the respondents are using their payment services which
includes InstaPay, DirectPay etc.

No. of respondent
Yes 3
No 7

DIAGRAMATICAL REPERSENTATION:

SUBSCRIPTION TO PAYMENT SERVICES

YES-3
NO-7

INTERPRETATION:

From the above pie chart it is concluded that very less( 3 respondent) customers
has subscribed to the payment services whereas the rest 7 respondent do not
wish to use these services.

38
8. The table shows if any of the respondent taken any loan from this bank.

No. of respondent
Yes 3
No 7

DIAGRAMATICAL REPRESENTATION:

LOAN TAKEN FROM RESPONDEDNT

YES-3
NO-7

INTERPRETATION:

From the above it can be seen that only 3 respondent has taken loan from this
bank whereas the rest 7 respondent never took any loan from this bank.

39
9. The table shows the type of loan was taken by the respondent.

Type of loan No. of respondent

Personal loan 2
Car loan 1
Home loan Nil

DIAGRAMATICAL REPRESENTATION:

TYPE OF LOAN

PERSONAL LOAN-2
CAR LOAN-1
HOME LOAN-NIL

INTERPRETATION:

From the above it can derived that the type of loan previous respondents who
took loan from the bank. This shows that 2 respondent has taken personal loan
and the rest 1 respondent took car loan.

40
10. The table shows whether the respondent would like to invest in India due to
rise in infrastructure, modern & world class facility available.

No. of respondent
Yes 7
No 3

DIAGRAMATICAL REPRESENTATION:

WHETHER THE RESPONDENT WILL INVEST IN

INDIA

YES-7
NO-3

INTERPRETATION:

The above pie shows that the majority of the respondent i.e., 7 respondent are
willing to invest in India whereas the rest don’t wish to invest in India despite
the rise in same facility available to NRI people.

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11. The table shows if the respondents have ever purchased any Life Insurance
policy via hdfc bank.

No. of respondent
Yes 7
No 3

DIAGRAMATICAL REPRESENTATION:

RESPONDENT WHO PURCHASED LIFE

INSURANCE POLICY VIA BANK

YES-7
NO-3

INTERPRETATION:

From observing the above pie chart it is concluded that the 7 respondent has
purchased policy via bank and the rest 3 respondent did not took the life
insurance policy.

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12. The table shows if the respondent trade in Indian stock market .

No. of respondent
Yes 7
No 3

DIAGRAMATICAL REPRESENTATION:

RESPONDENT TRADING IN INDIAN STOCK

MARKET

YES-7
NO-3

INTREPRETATION:

By observing the above pie chart it can be seen that the most of the respondent,
7 respondents, actually trade in Indian stock market whereas the rest 3
respondents do not wish to trade in Indian stock market.

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13. The table shows which all problems were faced by respondents.

Problems No. of respondent

More paper work 6
Time consuming procedure 4
Employee attitude Nil
Communication gap Nil

DIAGRAMATICAL REPRESENTATION:

PROBLEMS FACED WHILE VISITING BANK

MORE PAPER WORK-6

TIME CONSUMING
PROCEDURE-4
EMPLOYEE ATTITUDE-NIL

COMMUNICATION GAP-NIL

INTERPRETATION:

From the above it can be observed that most of the customers (6 respondents)
faced paper work problems whereas the rest 4 respondents think it is a time
consuming procedure. None of the respondent felt that there was any problem
with employee attitude or communication gap.

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14. The table shows if the bank charges for the service they provide.

No. of respondent
Yes 3
No 7

DIAGRAMATICAL REPRESENTATION:

BANK CHARGES FOR SERVICE

YES-3
NO-7

INTERPRETATION:

From the above diagrammatical representation it is observed that 3 respondent

think the bank charges them for the services they provide whereas the rest 7
respondent think that the bank never charged them for the services.

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15. The table shows whether the bank offers competitive interest rate according
to the respondents.

No. of respondent
Yes 10
No Nil

DIAGRAMATICAL REPRESENTATION:

COMPETITIVE INTEREST RATE

YES-10
NO-NIL

INTERPRETATION:

From the above table and pie chart it is clearly indicated that the all the 10
respondents think that the bank offers them competitive interest rate.

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16. The table shows whether the respondents feel that the bank’s money transfer
service is quick, safe and easy.

No. of respondent
Yes 10
No Nil

DIAGRAMATICAL REPESENTATION:

MONEY TRANSFER BEING QUICK,SAFE &

EASY

YES-10
NO-NIL

INTERPRETATION:

It can observed from the above diagrammatical representation that the all the 10
respondent thinks that the money transfer service is quick, safe and easy.

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17. The shows whether the bank’s redresser of grievances responds quickly on
time and with proper solutions according to respondents.

No. of respondent
Strongly agree 2
Agree 8
Average Nil
Strongly disagree Nil

DIAGRAMATICAL REPRESENTATION:

REDRESSAL OF GRIEVANCES

STRONGLY AGREE-2
AGREE-8
AVERAGE-NIL
STRONGLY DISAGREE-NIL

INTERPRETATION:

From the above pie chart it is concluded that the 2 respondent strongly agreed
that their bank redress their problem with proper solutions whereas the rest 8
respondent agrees the same.

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18. The table shows overall service quality of bank according to the respondent.

Service quality No. of respondent

Excellent 4
Good 6
Average Nil
Poor Nil;

DIAGRAMATICAL REPRESENTATION:

OVERALL SERVICE QUALITY

EXCELLENT-4
GOOD-6
AVERAGE-NIL
POOR-NIL

INTERPRETATION:

By observing the above pie chart it is concluded that 4 respondent felt the
overall service quality was excellent whereas the rest 6 respondent felt the
service was just good. None of the respondent rated their service quality poor.

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19. The table shows the banking service in terms of satisfaction.

Rating No. of respondent

Highly satisfied 4
Satisfied 6
Neutral Nil
Dissatisfied Nil
Strongly dissatisfied Nil

DIAGRAMATICAL REPRESENTATION:

BANKING SERVICES IN TERMS OF

SATISFACTION

HIGHLY SATISFIED-4
SATISFIED-6
NEUTRAL-NIL
DISSATISFIED-NIL
STRONGLY DISSATISFIED-NIL

INTERPRETATION:

From the above pie chart it is concluded that the customers or the respondent
are satisfied with the banking services offered by bank. The pie shows 4
respondents are highly satisfied with the banking service whereas the rest 6
respondents are satisfied.

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20. The table shows whether the NRO customers have availed the DTAA
benefits or not.

Use of DTAA benefits No. of respondent

Yes 1
No 9

DIAGRAMATICAL REPRESENTATION:

DTAA BENEFIT

YES-1
NO-9

INTERPRETATION;

The above pie chart clearly indicates that only 1 respondent has availed DTAA
benefits whereas rest 9 respondent have not availed it. Though this benefit can
only be enjoyed by NRO customers but out of 4 NRO respondents only 1 has
availed it.

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21. The table shows whether the respondent will recommend this bank to their
friends, relatives or associates or not.

Recommendation No. of customers

Yes 10
No Nil

DIAGRAMATICAL REPRESENTATION:

RECOMMENDATION TO FRIENDS, RELATIVES

OR ASSOCIATES

YES-10
NO-NIL

INTERPRETATION:

From the above pie chart it is clearly indicated that the customers are satisfied
with the bank and its service and therefore will recommend it to their friends,
relative or associates. None of the respondent said no. All the 10 respondent
answered yes.

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 Chapter 5

OBSERVATIONS AND SUGGESTIONS

OBSERVATION AND FINDINGS AFTER BRIEFLY

ANALYZING THE SURVEY

This observation will help us to find out whether the customers are aware of the banking
service provided to them. This will also allow us to know whether the bank is working with
today’s time and its relationship with customers.

Following are the observations and the suggestions which were derived after carefully
studying the data from the survey held on bank:

 The bank provides individual customer attention which good for its business. In
today’s time it is very important to maintain the customers.
 The NRI customers are well aware of net banking, phone banking therefore they
easily handle their accounts without any hindrance.
 The bank should promote their payment service among the NRI customers as it is
for convenience because very few respondents had subscribed to such services.
 The bank with their competitive interest rate has managed to retain their
customers for long period. Thus bank should make sure that they’ll offer such
rates in future as well.
 Since all the respondent trade in Indian stock market, they should offer them with
services which will easy their burden while trading in Indian stock market. The
bank should provide information regarding listing in stock exchange, their
expansions, new products and services so that they can get aware of it and use it
as per their requirement.
 Also all the respondents wish to invest in India due to its rise in infrastructure and
availability of world class facility. This is a good sign for the nation as the NRI
customers think it’s safe to invest in their own hometown.
 The bank has already come up with new schemes which are the NRI customers are
subscribed already. Bank should adopt new policies which is suitable for every type
of the customer. This will help the bank to expand.
 Since very few respondents took loan from bank, the bank should offer attractive
loan policy which will ease and help more NRI customers to get loan.
 Since the NRI banking is considered as more of paper work and time consuming
procedure among the respondent, the bank should find new ways to reduce such
problems.
 The bank knows how make money transfer easy and safe for its customers which
is leading them to earn few brownie points comparing to other bank.
 Also the bank’s redressal of grievance is working properly and finds solution to
the customers on time promised.
 The NRI respondents were happy with the overall services which were offered to
them. This is the main thing which the bank has managed to balance efficiently.
 The observation also shows that the customers are satisfied with the bank and its
banking service.
 After analyzing the survey it is realized that very few respondent were not aware
of the DTAA benefits which are offered to its NRE customers. Therefore the bank
should create awareness of such benefits among the customers.

54
 Chapter 6

CONCLUSION

Today’s finicky banking customers will settle for nothing less. The customer
has come to realize somewhat belatedly that he is the king. The customer’s
choice of one entity over another as his principal bank is determined by
considerations of service quality rather than any other factor. He wants
competitive interest 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 about the changes in deposit rates and service charges and he bristles
with “customary rage” if his bank is slow to redress any grievance he may have.
He cherishes the convenience of impersonal net banking but during his
occasional visits to the branch he also wants the comfort of personalized human
interactions and facilities that make his banking experience pleasurable. In short
he wants financial house that will more than just clear his cheques and updates
his passbook: he wants a bank that cares and provides great services.

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 Bibliography

 www.google.com
 www.hdfcbank.com

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