PROJECT REPORT

ON

HRM IN PUBLIC
ADMINISTRATION AND
CORPORATE SECTOR,
EQUITY MARKET & INVESTMENT.
AT
HDFC BANK
PALAMPUR

Summer Training Project Report

Submitted in the partial fulfillment of the Requirement for the
award of the

Sri Sai University - Palampur

(Session 2015-2016)

SUBMITTED TO::Mr. Hemraj

SUBMITTED BY::Swati Awasthi

MBA 3rd Semester

Deptt. Of Management

Reg. No. 614012030

DECLARATION

I hereby declare that the Project report titled HRM in Public Administration and corporate
Sector,Equity market and Investment is my original work and has not been published or submitted for
any degree, diploma or other similar titles elsewhere. This has been undertaken for the purpose of partial
fulfillment for the degree of Master of Business Administration.

Date:

Swati Awasthi
MBA 3rd Semester
Reg. No. 614012030

PREFACE
This project report attempts to bring under one cover the entire hard work and dedication put in by
me in the completion of the project work onHRM in Public Administration and corporate
Sector,Equity market and Investment I have expressed my experiences in my own simple way. I hope
who goes it will find it interesting and worth reading. All constructive feedback is cordially invited.

.
Swati Awasthi

ACKNOWLEDGMENT

It is really a matter of pleasure for me to get an opportunity to thank all the persons who contributed
directly or indirectly for the successful completion of the project report, HRM in Public Administration
and corporate Sector,Equity market and Investment is my original work and has not be .
I wish to express my gratitude to the branch manager Mr. NAVEEN SHARMA of HDFC BANK,
PALAMPUR for giving mean opportunity to be a part of their esteem organization and enhance my
knowledge by granting permission to do a summer training Project. They provided me with their assistance
and support whenever needed, which has been instrumental in completion of this project. I am thankful to
them, for their support and encouragement throughout the tenure of the project. Also I am thankful to my
faculty guide MR.HEMRAJ from SRI SAI UNIVERSITY (PALAMPUR) for being a source of support
during this training period. Last but not the least I am grateful to all the staff members of HDFC Bank for
their kind cooperation and help during the course of my project.

Swati Awasthi

INDEX
CONTENTS

PAGE NO.

1. INTRODUCTION
2. COMPANY PROFILE
3. HRM IN PUBLIC ADMINISTRATION AND CORPORATE
SECTOR,EQUITY MARKET AND INVESTMENT
4. RESEARCH METHODOLOGY
5. DATA ANALYSIS
6. CONCLUSION
7. RECOMMENDATIONS
8.LIMITATIONS
9. REFERENCES
10. ANNEXURE: QUESTIONNAIRE

CHAPTER -1
INTRODUCTION OF
BANKING

INTRODUCTION OF BANKING
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. In short he wants financial house that will more than just clear his
cheque and updates his passbook: he wants a bank that cares and provides great services.
So does HDFC bank meet these heightened expectations? What are the customers
perceptions of service quality of the banks? Which dimension of service quality of HDFC
bank is performing well? To find out answers to these questions I undertook a survey of 2
branches of HDFC bank.
A lot of surveys have been done in the past to understand the aspect of customer satisfaction
and to find out the customer friendly banks. My research is conducted to find out , HRM in
Public Administration and corporate Sector,Equity market and Investment

INTRODUCTION OF
HDFC BANK

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 the RBI's 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.
HDFC Bank comprises of a dynamic and enthusiastic team determined to accomplish the
vision of becoming a World-class Indian bank. HDFC banks 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.

CHAPTER-2

COMPANY
PROFILE

Equity Market

HISTORY OF EQUITY
MARKET

The history of the Indian equity market

goes back to the 18th century when securities of the East India Company
were traded. Till the end of the 19th century, the trading of securities was
unorganized and the main trading centers were Calcutta.and.Bombay
Trade activities prospered with an increase in share price in India with
Bombay becoming the main source of cotton supply during the American
Civil War (1860-61). In 1865, there was drop in share prices. The
stockbroker association established the Native Shares and Stock Brokers
Association in 1875 to organize their activities. In 1927, the BSE
recognized this association, under the Bombay Securities Contracts
ControlAct,1925.
The Indian Equity Market was not well organized or developed before
independence. After independence, new issues were supervised. The
timing, floatation costs, pricing, interest rates were strictly controlled by
the Controller of Capital Issue (CII). For four and half decades, companies
were demoralized and not motivated from going public due to the rigid
rules
of
the
Government.
In the 1950s, there was uncontrollable speculation and the market was
known as 'Satta Bazaar'. Speculators aimed at companies like Tata Steel,
Kohinoor Mills, Century Textiles, Bombay Dyeing and National Rayon. The
Securities Contracts (Regulation) Act, 1956 was enacted by the
Government of India. Financial institutions and state financial corporation
were
developed
through
an
established
network.
In the 60s, the market was bearish due to massive wars and drought.
Forward trading transactions and 'Contracts for Clearing' or 'badla' were
banned by the Government. With financial institutions such as LIC, GIC,
some revival in the markets could be seen. Then in 1964, UTI, the first
mutual
fund
of
India
was
formed.
In the 70's, the trading of 'badla' resumed in a different form of 'hand
delivery contract'. But the Government of India passed the Dividend
Restriction Ordinance on 6th July, 1974. According to the ordinance, the
dividend was fixed to 12% of Face Value or 1/3 rd of the profit under
Section 369 of The Companies Act, 1956 whichever is lower

EQUITY MARKET

The Indian Equity Market is more popularly known as the Indian Stock
Market. The Indian equity market has become the third biggest after
China and Hong Kong in the Asian region. According to the latest report
by ADB, it has a market capitalization of nearly $600 billion. As of March
2009, the market capitalization was around $598.3 billion (Rs 30.13 lakh
crore) which is one-tenth of the combined valuation of the Asia region.
The market was slow since early 2007 and continued till the first quarter
of 2009

A stock exchange has been defined by the Securities Contract

(Regulation) Act, 1956 as an organization, association or body of
individuals established for regulating, andcontrollingofsecurities.
The Indian equity market depends on three factors

Funding into equity from all over the world

Corporate houses performance
Monsoons
The stock market in India does business with two types of fund
namely private equity fund and venture capital fund. It also deals in
transactions which are based on the two major indices - Bombay
Stock Exchange (BSE) and National Stock.

The market also includes the debt market which is controlled by

wholesale dealers, primary dealers and banks. The equity indexes
are allied to countries beyond the border as common calamities
affect markets. E.g. Indian and Bangladesh stock markets are
affected by monsoons.

The equity market is also affected through trade integration policy.

The country has advanced both in foreign institutional investment
(FII) and trade integration since 1995. This is a very attractive field
for making profit for medium and long term investors, short-term
swing and position traders and very intra day traders.

The Indian market has 22 stock exchanges. The larger companies

are enlisted with BSE and NSE. The smaller and medium companies
are listed with OTCEI (Over The counter Exchange of India). The
functions of the Equity Market in India are supervised by SEBI
(Securities Exchange Board of India).

INVESTMENT
Investment is sacrificing something in present for gaining something
or benefiting something later. Use of capital to create more money, either
through

income-producing

vehicles

or

through

more

risk-oriented

ventures designed to result in capital gains. Investment can refer to a

financial investment (where an investor puts money into a vehicle) or to
an investment of effort and time on the part of an individual who wants
to reap profits from the success of his labor. Investment connotes the
idea that safety of principal is important. Speculation, on the other hand,
is far riskier.

OBJECTIVE OF INVESTMENT
The basic objective of investment is earning benefits or profits. These are
some objectives of investment:

Safety
Perhaps there is truth to the axiom that there is no such thing as a
completely safe and secure investment. Yet we can get close to ultimate
safety for our investment funds through the purchase of governmentissued securities in stable economic systems, or through the purchase of
the highest quality corporate bonds issued by the economy's top
companies. Such securities are arguably the best means of preserving
principal while receiving a specified rate of return

Income

However, the safest investments are also the ones that are likely to have
the lowest rate of income return or yield. Investors must inevitably
sacrifice a degree of safety if they want to increase their yields. This is
the inverse relationship between safety and yield: as yield increases,
safety generally goes down, and vice versa.

Marketability / Liquidity
Many of the investments we have discussed are reasonably illiquid,
which means they cannot be immediately sold and easily converted into
cash. Achieving a degree of liquidity, however, requires the sacrifice of a
certain level of income or potential for capital gains.

Tax Minimization
An investor may pursue certain investments in order to adopt tax
minimization as part of his or her investment strategy. A highly-paid
executive, for example, may want to seek investments with favorable tax
treatment in order to lessen his or her overall income tax burden.

Basis two decision of Investment

The decision of investment is based on two things related to investment

1 Return
2 Risk

What is Return

Return is the basic objective of investment which we divided under the

heading of benefits earlier. The gain or loss of a security in a particular
period. The return consists of the income and the capital gains relative on
an investment. It is usually quoted as a percentage The return can be
calculated according to following:
Income Received + Price Change
Return: Purchase Price of Asset

What is risk
Risk is the volatility in occurrence of an expected incident. The chance
that an investment's actual return will be different than expected. This
includes the possibility of losing some or all of the original investment. It
is usually measured by calculating the standard deviation of the historical
returns or average returns of a specific investment

CHAPTER -2
REVIEW
LITRETURE

OF

George H. Pendleton: Senator from Ohio sponsored the Civil Service

Reform Act in 1883, which sought to implement a merit-based program in
the federal government. Its principal tenets include:

Hiring employees by merit

Receiving pay according to position, not personal characteristics

Protection from political interference and dismissal via regime

changes

Government
(transparency)

workers

have

an

obligation

to

accountability

Chester Barnard: taught an organization was the cooperation of human

activity and to survive an organization needed to have efficiency and
effectiveness. His definition of effectiveness: being able to accomplish
the goals that were set and efficiency if the goals are reached by the
individuals of the organization then cooperation among them will
continue.
Paul C. Light: discusses the Shadow Government and how it is used to
make the Federal government appear smaller, even as the Federal
government grows. The Shadow Government is made up of those entities
that produce goods or services for the government under contracts,
grants, or mandates.
Volcker Commission: also known as the National Commission on Public
Service was established in 1989, to rebuild the federal civil service. The
commission was established by the United States Chairman of the
Federal Reserve Paul A. Volcker. The main concern of the commission
was morale because it was beginning to fall as were recruitment and
retention among civil service employees and would soon become a crisis.
This possible crisis was believed to be hindering the ability of the
government to function effectively as the demand on the government
began to grow.

CHAPTER-3
RESEARCH
METHODOLOGY

MEANING OF RESEARCH: Research in common parlance refers to a search for knowledge. And
according to Redman and Mory systematized effort to gain new knowledge. And
some people consider research as movement, a movement from known to the
unknown.
Thus Research is an original contribution to the existing stock of
knowledge making for its advancement. It is the pursuit of truth with the help of
study, Observation, comparison and experiment. In short, the search for knowledge
through objective and systematic method of finding solution to a problem is research.

OBJECTIVES OF RESEARCH:The purpose of research is to discover answers to questions through the

application of scientific procedures. The main aim of research is to find out the truth
which is hidden and which has not been discovered as yet. Research objectives as
falling into a number of following broad groupings.The objectives of study as follows :
1. To gain familiarity with a phenomenon or to achieve new insights into it (studies
with this object in view are termed as exploratory or formulative research
studies).
2. To portray accurately the characteristics of a particular individual, situation or a
group (studies with this object in view are known as descriptive research
studies).
1. To determine the frequency with which something occurs or with which it is
associated with The description is used for frequencies, averages and other statistical
calculations. Often the best approach, prior to writing descriptive research, is to conduct a survey
investigation. Qualitative research often has the aim of description and researchers may follow-up
with examinations of why the observations exist and what the implications of the
findingssomething else ( studies with this object in view are known as diagnostic
research studies)

TYPE OF RESEARCH: Our Research is a fact-finding research. So for the fact-finding we use Descriptive
Research.

DESCRIPTIVE RESEARCH: Descriptive research includes survey and fact-finding enquiries of

different kinds. The major purpose of descriptive research is description of the state
of affairs, as it exists at present.

TYPE OF DATA:The core finding of the study are based on the information collected
through both primary data & secondary data.

PROCEDURE IN COLLECTION OF DATA:The information was collected from the investors with the help of a
structured questionnaire and also interviews were conducted with the
brokers and officials of trading or brokerage companies. And several
books and web sites are use as a secondary source of information.

SAMPLING DESIGN
SAMPLING UNIT:The people are those who invest money in different investment
alternatives.

SAMPLE SIZE:50 persons were visited for the purpose of the study

SAMPLING TECHNIQUE:In this study, the respondents were chosen through convenience &
Judgment sampling.

SAMPLE AREA:palampur

STATISTICAL TOOL:-

Data collection through survey was analyzed with the help of simple %
Tabular & graphic method that includes Pie Charts. Correlation is also
used to determine relationship between variables.

IMPORTANCE AND SCOPE OF THE STUDY

The study would try to throw some insights into the existing services provided by the banks, perceptions and
the actual service quality of the bank. The results of the study would be able to recognize the lacunae in the
system and thus provide key areas where improvement is required for better performance and success ratio.
In the days of intense competition, superior service is the only differentiator left before the banks to attract,
retain and partner with the customers. Superior service quality enables a firm to differentiate itself from its
competition, gain a sustainable competitive advantage, and enhance efficiency

SCOPE OF STUDY
The scope of this research is to identify the service HRM in Public administration and corporative
sector,Equity market and investment. This research is based on primary data and secondary data. T. It aims
to understand the skill of the company in the area of service quality that are performing well and shows
those areas which require improvement. The study was done taking two branches of HDFC bank into
consideration. The survey was restricted to the bank customers in Palampur only.

RESEARCH METHODOLOGY
DATA SOURCE
Primary Data:
The primary data was collected by means of a survey. Questionnaires were prepared and customers of the
banks at two branches were approached to fill up the questionnaires. The questionnaire contains 20
questions which reflect on the type and quality of services provided by the banks to the customers. The
response of the customer and the is recorded on a grade scale of strongly disagree, disagree, uncertain, agree
and strongly agree for each question. The filled up information was later analyzed to obtain the required
interpretation and the findings.

Secondary Data:
In order to have a proper understanding of the service quality of bank a 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 various search engines like Google, yahoo search and answers.com.

RESEARCH DESIGN

The research design is exploratory till identification of service quality parameters. Later it becomes
descriptive when it comes to evaluating customer perception of service quality of the banks.
Descriptive research, also known as statistical research, describes data and characteristics about the
population or phenomenon being studied. Descriptive research answers the questions who, what, where,
when and how.
Although the data description is factual, accurate and systematic, the research cannot describe what caused a
situation. Thus, descriptive research cannot be used to create a causal relationship, where one variable
affects another. In other words, descriptive research can be said to have a low requirement for internal
validity.
: Structured Questionnaire.
Contact Method: Personal Interview.
Research Instrument

Likert scaling is a bipolar scaling method, measuring either positive or negative response to a statement. The
questionnaire consists of two parts. The first part consists of three questions concerning the demographic
information of the respondent such as the name, age, educational qualifications and income. The second part
consisting of 18 questions exploring the respondents perception about the service quality of HDFC. For
evaluation of service quality of HDFC bank service quality dimension of reliability, assurance, tangibility,
empathy and responsiveness is used in order to evaluate the actual service quality of HDFC bank.

LIMITATIONS OF THE STRATEGY

The study is only for the HDFC Bank confined to a particular location and a very small sample of
respondents. Hence the findings cannot be treated as representative of the entire banking industry.

The study can also not be generalized for public and private sector banks of the country.

Respondents may give biased answers for the required data. Some of the respondents did not like to
respond.

Respondents tried to escape some statements by simply answering neither agree nor disagree to
most of the statements. This was one of the most important limitation faced, as it was difficult to
analyse and come at a right conclusion.

CHAPTER -4
DATA
ANALYSIS

DATA ANALYSIS
Ques. Age

AGE CATEGORY

FREQUENCY

PERCENTAGE

CUMULATIVE PERCENTA

18-23 Years

10

20

20

24-29 Years

17

34

54

30-35 Years

15

30

84

35 Years and above

16

100

TOTAL

50

100

Sales

18-23 Year
24-29 Year
30-35 Year
35 and above

INTERPRETATION
From the table and graph above it can be seen that

20% respondents age are 18 to 23 years.

34% respondents age are 24 to 29 years.

30% respondents age are 30 to 35 years.

16% respondent s age are 35 to above years.

Ques. Educational qualifications

CATEGORY

FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

UNDER
GRADUATE

13

26

26

GRADUATE

20

40

66

POST
GRADUATE

17

34

100

TOTAL

50

100

Sales

UNDERGARDUATE
GRADUATE
POST GRADUATE

INTERPRETATION
From the table above it can be seen that.
26% respondents are Under graduate.
40% respondents are Graduate.
34% respondents are Post graduate.

Ques.1 HDFC bank has modern looking equipment.

SCALE

FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

STRONGLY
DISAGREE

10

10

DISAGREE

25

50

60

UNCERTAIN

16

32

92

AGREE

100

TOTAL

50

100

Sales

STRONGLY DISAGREE
DISAGREE
UNCERTAIN
AGREE

INTERPRETATION
HDFC bank has modern-looking and hi-tech equipments. Here analysis show that most of the respondents
disagreed with this statement. Among the total respondents 50% disagreed, 32% were neutral and 8%
agreed. After analysis I found that majority of the respondents think that HDFC Bank do not have modern
looking equipments or no hi-tech equipments.

Q2.Do you invest in share market?

People

60
50
People

40
30
20
10
0
Yes

No

Interpretation
Do you invest in share market.Here analysis shows that most of
respondents agree with the statement.Among total respondents 60%
agree and 40 % disagree.
After analysis I found that majority of the respondents think that invest in share market.

Q3.Which company do you like invest in?

Company

10

10

Public
Govt
20

Private
Semi private

60

INTERPRETATION
Which company do you like to invest in. Here analysis show that most of the respondents disagreed with
this statement. Among the total respondents 60% invest in private company , 20% in govt,and 10% in public
and 10% in semi private. After analysis I found that majority of the respondents think that people invest in
private company

Q4. Which one of these you invested your money?

Money

IPO

8.2
10

Equity
Bonds
Commodity

40

20

Mutual Fund
Forex

15

INTERPRETATION
Which one of these you like invested your money . Here analysis show that most of the respondents
disagreed with this statement. Among the total respondents 40% invest in mutual fund , 15% in
commodity,and 20% in bonds and 10% in equity,8.2% in ipo and 5%in Forex.. After analysis I found that
majority of the respondents think that invest money in mutual fund or bonds.

Q5. Your purpose of investment.

Purpose
40
35
30
25

Purpose

20
15
10
5
0
Safty

High Return Liquidity Tax Saving Any Other

INTERPRETATION
Your purpose of investment.. Here analysis show that most of the respondents agreed with the High
return.The purpose of people to investment is 40% agree with high return, 20% agree with safety, 15% with
saving, 10% with liquidity. After analysis I found that majority of the respondents think that purpose of
investment is high return

Q6. Give one basic purpose on which your investment decision based

Series 1
30
25
20

Series 1

15
10
5
0
Safety

High Return

Liquidity

Tax saving

Any other

INTERPRETATION
Give one basic purpose on which your investment decision based. Here
analysis show that most of the respondents agreed with safety. Among the total respondents 30% agree with
safety , 20% with liquidity,20% in high return,20% in tax saving and 10% others.. After analysis I found
that majority of the respondents think that purpose of investment is safety

Q7.

following according to your preferred attribute on which you

are willing to invest in these investment.
Investme Safe
nts
IPO
Equity
Bonds
Commodit
y
Mutual
Fund
Forex

ty

High
Retur
n

Liquidi
ty

Tax
Savi
ng

Othe
rs

Q8.what return do u expect from equity investment compared to other

market

Return

High
Medium
Low
8.2

Q9.What are the factors that influence your decision making investment

9
8
7
6
5
4
3
2
1
0
Broker

Friends

Institute

Q10 Are you satisfied for HDFC bank services

Services

Satisfied
Fullsatisfied
Semisatisfied

CHAPTER-6
FINDINGS OF THE
REPORT

FINDINGS OF THE REPORT

The Reliability dimension of service quality is better as compared to empathy and tangibility. Still the
score is low. For most services, customer s perceptions of whether the service has been performed
correctly, and not provider-established criteria, are the major determinants of reliability. Customers of the
bank hesitate to rely on the bank. Whenever they have a problem, the bank shows sincere interest in solving
it but the services are not performed by a certain time as promised. The employees should take this problem
seriously and take steps to remove this.
As score for Assurance is at second place after responsiveness, so the customers of HDFC bank are very
confident and feel safe while transacting with the bank. Moreover the employees of the bank have proved to
be trustworthy. Employees are also educated enough to answer all the questions.
The score of Tangibility dimension of service quality of HDFC bank is the lowest. The service quality
factor tangible is defined by whether the physical facilities and materials associated with the service are
visually appealing at the bank. These are all factors that customers notice before or upon entering the bank.
Customer expectations regarding visual appealing of HDFC is very high. From my study I found that
Physical facilities and modern looking equipment are not sufficient in HDFC bank. Respondents were
uncertain about the neat appearance of the reception desk employees. So they should work on that and try to
fulfill the gap.
A ccording to my findings, the score of Empathy is not satisfactory but not unsatisfactory also. HDFC
bank is unable to give individual attention to its customers and is unable to understand specific needs of its

customers. But still bank has taken steps to satisfy its customers by keeping operating hours convenient to
its customers and keeping their interest best at heart.
I n HDFC bank, the score of Responsiveness is highest so they are focusing on prompt service, employees
are willing to help the customers and say the exact time when the services will be performed. Employees at
bank give their customers first preference and are always ready to help them. Overall HDFC bank s
responsiveness dimension of service quality is the highest.
A ccording to the customer perception, HDFC bank is highly responsive. Customers are assured while
transacting with the bank. The reliability dimension is lower than the first to dimension. They feel that the
bank is unable to give them individual attention and its equipments are not modern and sufficient for the
bank.
There is not much gap between all the dimensions, this shows that HDFC BANK is a better service
provider in all the dimensions i.e. reliability, assurance, tangibility, responsiveness and empathy. As a result
of which, the customers are satisfied with the service offered by HDFC bank.

CHAPTER-7
CONCLUSION

CONCLUSION
Based on the study conducted it can be concluded that responsiveness, assurance and reliability are the
critical dimensions of service quality of HDFC bank and they are directly related to overall service quality.
The factors that may delight customers tend to be concerned more with the intangible nature of the service,
commitment, attentiveness, friendliness, care, and courtesy.
The employees give prompt services, always are ready to answer the questions and are
trustworthy. The main sources of dissatisfaction appear to be cleanliness, up to date technology modern
equipments, and neatly dressed up employees. The Tangibility dimension of service quality of HDFC bank
is highly disappointing and serious steps are needed to be taken to enhance this dimension. Customers of the
bank are dissatisfied with the empathy dimension. To satisfy these customers, the management can take
some attempts, noted earlier as recommendations.
The study brings about the areas which require urgent attention of the employees, the
management, and the policy makers of the industry. These are areas in which customers are hugely
dissatisfied with the services of the banks against their expectation. This high degree of dissatisfaction
resulting from the services received clearly questions the design of services or subsequent response of the
bank employees. These limitations are too serious to be avoided as these question the front-line people
dealing with the customers and the approach of the management in taking customers seriously.
The management should understand the benefits of service quality. It include increased customer
satisfaction, improved customer retention, positive word of mouth, reduced staff turnover, decreased
operating costs, enlarged market share, increased profitability, and improved financial
performance. In the days of intense competition, superior service is the only differentiator left before the
banks to attract, retain and partner with the customers. Superior service quality enables a firm to
differentiate itself from its competition, gain a sustainable competitive advantage, and enhance efficiency.
Thus, improving service quality leads to the customer satisfaction and, ultimately, to customer loyalty.

CHAPTER-8
RECOMMENDATIONS

RECOMMENDATIONS
Reliability

is an obvious place to start. Customers of the bank want to know their resources are safe and
within trustworthy institutions. A way to ensure this peace of mind would be to take steps to ensure bank
employees are well trained, so each bank associate is able to offer complete and comprehensive information
at all times. Consistent policies combined with a knowledgeable staff will foster a high degree of
institutional cohesion and reliability.
R esponsiveness, again when associated with a well-trained staff and timely answers to service-related
questions, would make significant inroads into causing HDFC bank be regarded as responsive. Staff should

be encouraged to present relevant options to banking customers in a manner that does not resemble
salesmanship so much as a desire to serve.
I ntangibles please customers just as much as tangibles in the banking industry. People tend to visit the
same branch of a bank over and over again. Usually, this is a location close to their home or their workplace.
It is natural that customers become comfortable and habituated to these branch banks, for the same reason
they develop familiarity with a neighborhood supermarket or convenience store. It makes sense that bank
employees would be encouraged to learn to recognize these regular customers, learn their names, and begin
to identify their basic service requirements.
Learning to understand customers needs will allow bank associates to offer enhanced services, perhaps
lowering customers banking costs and increasing their investment potential. This could also open up the
possibility of increased profits for banks, for when perceived as more service and customer oriented, they
will, in effect, become a useful
and pleasant way to shop.
K eeping the bank with up-to-date technologically are important factors. Modern equipments, new
improved technology should be replaced with the old ones. If the staff inside is pleasant and well-informed,
in an aesthetically pleasing environment, then customer satisfaction will be high.
The five-dimensional structure could possibly serve as a meaningful framework for tracking a bank s
service quality performance over time and comparing it against the performance of competitors. Items on
some dimensions should be expanded if that is necessary for reliability.
Thus, the banking industries must continuously measure and improve these dimensions in order to gain
customers loyalty.

CHAPTER-9
BIBLIOGRAPHY

BIBLIOGRAPHY
References
Kotler Philip, marketing management, (Pearson education, 12th edition)
Malhotra K. Naresh, marketing research (An applied orientation), Research design,
(Prentice hall of India pvt. 5th edition)
Zeithmal V. A., Grembler D.D., Bitner M.j., and Pandit A.: Service Marketing Integrated customer Focus
across the Firm (4th Edition)
M.K. Rampal : Service Marketing
Websites
www.hdfcbank.com
www.hdfcindia.com
www.wikipedia.org
www.marketresearch.com

CHAPTER -5

CONCLUSION :Organizations are coming to realize the bottom-line benefits of incorporating

sustainability into their DNA. Its beneficial for attraction and retention and its the
right thing to do. HR is a key organizational leader and can take the lead or partner
with other executives to work cross-functionally to integrate CSR objectives into how
business gets conducted. HR practitioners can act as translators of the organizations
CSR commitment vertically and horizontally across departments. Most will find upon
reading this report that they have many good practices underway. Many will find they
have a new structure for their thinking they can apply practically in the workplace.
Some will believe the current economic downturn will put these ideas on the
backburner until the economy rebounds, while others think that organizations which
abandon their CSR integration in the downturn will lose ground and breed cynicism in
brighter times. Regardless of the point of view, all agree that effective HR leadership
on CSR integration requires Board, CEO and executive commitment to be successful.
Indeed, the roadmap is predicated on the assumption of this top level commitment.
However, more and more organizations are committing to sustainability and to
embedding CSR into all that we do, so it is hoped the 10 steps provide some
guidance as to how to go about doing this. The firm of the future is expected to have
undergone significant transformation such that CSR no longer becomes managed as a
separate deliverable, but is part of the experience of being an employee in an
organization that lives its values. For human resource professionals embarking on
CSR or deepening their CSR experience, this roadmap can help them understand their

role in sustainability and CSR and how they can foster an environment that embeds a
CSR ethic in the way we do business.

Employee Satisfaction
Definition:
Employee satisfaction is the terminology used to describe whether
employees are happy and contented and fulfilling their desires and needs
at work. Many measures purport that employee satisfaction is a factor in
employee
motivation,
employee
goal
achievement,
and
positive employee morale in the workplace.
Employee satisfaction, while generally a positive in your organization,
can also be a downer if mediocre employees stay because they are
satisfied with your work environment.
Factors contributing to employee satisfaction include treating employees
with respect, providing regula remployee recognition, empowering
employees, offering above industry-average benefits and compensation,
providing employee perks and company activities, and positive
management within a success framework of goals, measurements, and
expectations.
Employee satisfaction is often measured by anonymous employee
satisfaction surveys administered periodically that gauge employee
satisfaction. (I do not support these.) Employee satisfaction is looked at
in areas such as:

management,

understanding of mission and vision,

empowerment,

teamwork,

communication, and

coworker interaction.
The facets of employee satisfaction measured vary from company to
company.

A second method used to measure employee satisfaction is meeting with

small groups of employees and asking the same questions verbally.
Depending on the culture of the company, either method can contribute
knowledge about

Services and products offered by banks :Broad Classification of Products in a bank:

The different products in a bank can be broadly classified into:

Retail Banking.

Trade Finance.

Treasury Operations.
Retail Banking and Trade finance operations are conducted at the branch
level while the wholesale banking operations, which cover treasury
operations, are at the hand office or a designated branch.

Retail Banking:

Deposits

Loans, Cash Credit and Overdraft

Negotiating for Loans and advances

Remittances

Book-Keeping (maintaining all accounting records)

Receiving all kinds of bonds valuable for safe keeping

Trade Finance:

Issuing and confirming of letter of credit.

Drawing, accepting, discounting, buying, selling, collecting of bills of

exchange, promissory notes, drafts, bill of lading and other securities.

Treasury Operations:

Buying and selling of bullion. Foreign exchange

Acquiring, holding, underwriting and dealing in shares, debentures,

etc.

Purchasing and selling of bonds and securities on behalf of

constituents.
The banks can also act as an agent of the Government or local authority.
They insure, guarantee, underwrite, participate in managing and carrying
out issue of shares, debentures, etc.
Apart from the above-mentioned functions of the bank, the bank provides
a whole lot of other services like investment counseling for individuals,
short-term funds management and portfolio management for individuals
and companies. It undertakes the inward and outward remittances with
reference to foreign exchange and collection of varied types for the
Government.
Common Banking Products Available:
Some of common available banking products are explained below:
1) Credit Card: Credit Card is post paid or pay later card that draws
from a credit line-money made available by the card issuer (bank) and
gives one a
grace period to pay. If the amount is not paid full by the
end of the period, one is charged interest. A credit card is nothing but a
very small card containing a means of identification, such as a signature
and a small photo. It authorizes the holder to change goods or services to
his account, on which he is billed. The bank receives the bills from the
merchants and pays on behalf of the card holder. These bills are
assembled in the bank and the amount is paid to the bank by the card
holder totally or by installments. The bank charges the customer a small
amount for these services. The card holder need not have to carry
money/cash with him when he travels or goes for purchasing. Credit
cards have found wide spread acceptance in the metros and big cities.
Credit cards are joining popularity for online payments. The major players
in the Credit Card market are the foreign banks and some big public
sector banks like SBI and Bank of Baroda. India at present has about 3
million credit cards in circulation.
2) Debit Cards: Debit Card is a prepaid or pay now card with some
stored value. Debit Cards quickly debit or subtract money from ones
savings account, or if one were taking out cash. Every time a person uses
the card, the merchant who in turn can get the money transferred to his
account from the bank of the buyers, by debiting an exact amount of
purchase from the card. To get a debit card along with a Personal
Identification Number (PIN). When he makes a purchase, he enters this
number on the shops PIN pad. When the card is swiped through the
electronic terminal, it dials the acquiring bank system either Master
Card or Visa that validates the PIN and finds out from the issuing bank
whether to accept or decline the transaction.

3) Automatic Teller Machine: The introduction of ATMs has given the

customers the facility of round the clock banking. The ATMs are used by
banks for making the customers dealing easier. ATM card is a device that
allows customer who has an ATM card to perform routine banking
transaction at any time without interacting with human teller. It provides
exchange services. This service helps the customer to withdraw money
even when the banks ate closed. This can be done by inserting the card
in the ATM and entering the Personal Identification Number and secret
Password.
ATMs are currently becoming popular in India that enables the customer
to withdraw their money 24 hours a day and 365 days. It provides the
customers with the ability to withdraw or deposit funds, check account
balances, transfer funds and check statement information. The
advantages of ATMs are many. It increases existing business and
generates new business. It allows the customers.

To transfer money to and from accounts.

To view account information.

To order cash.

To receive cash.

Advantages of ATMs:
To the Customers

ATMs provide 24 hrs., 7 days and 365 days a year service.

Service is quick and efficient

Privacy in transaction

Wider flexibility in place and time of withdrawals.

The transaction is completely secure you need to key in Personal

Identification Number (Unique number for every customer).

To Banks

Alternative to extend banking hours.

Crowding at bank counters considerably reduced.

Alternative to new branches and to reduce operating expenses.

Relieves bank employees to focus an more analytical and innovative

work.

Increased market penetration.

ATMs can be installed anywhere like Airports, Railway Stations,

Petrol Pumps, Big Business arcades, markets, etc. Hence, it gives easy
access to the customers, for obtaining cash.
The ATM services provided first by the foreign banks like Citibank,
Grind lays bank and now by many private and public sector banks in
India like ICICI Bank, HDFC Bank, SBI, UTI Bank etc. The ICICI has
launched ATM Services to its customers in all the Metropolitan Cities in
India. By the end of 1990 Indian Private Banks and public sector banks
have come up with their own ATM Network in the form of SWADHAN.
Over the past year upto 44 banks in Mumbai, Vashi and Thane, have
became a part of SWADHAN a system of shared payments networks,
introduced by the Indian Bank Association (IBA).
4) E-Cheques: The e-cheques consists five primary facts. They are the
consumers, the merchant, consumers bank the merchants bank and the
e-mint and the clearing process. This cheaqing system uses the network
services to issue and process payment that emulates real world
chaquing. The payer issue a digital cheaques to the payee ant the entire
transactions are done through internet. Electronic version of cheaques
are issued, received and processed. A typical electronic cheque
transaction takes place in the following manner:

The customer accesses the merchant server and the merchant

server presents its goods to the customer.

The consumer selects the goods and purchases them by sending an

e-cheque to the merchant.

The merchant validates the e-cheque with its bank for payment
authorisation.

The merchant electronically forwards the e-cheque to its bank.

The merchants bank forwards the e-cheque to the clearing house

for cashing.

The clearing house jointly works with the consumers bank clears
the cheque and transfers the money to the merchants banks.

The merchants bank updates the merchants account.

The consumers bank updates the consumers account with the
withdrawal information.
The e-chequing is a great boon to big corporate as well as small
retailers. Most major banks accept e-cheques. Thus this system offers
secure means of collecting payments, transferring value and managing
cash flows.

5) Electronic Funds Transfer (EFT): Many modern banks have

computerised their cheque handling process with computer networks and
other electronic equipments. These banks are dispensing with the use of
paper cheques. The system called electronic fund transfer (EFT)
automatically transfers money from one account to another. This system
facilitates speedier transfer of funds electronically from any branch to
any other branch. In this system the sender and the receiver of funds
may be located in different cities and may even bank with different
banks. Funds transfer within the same city is also permitted. The scheme
has been in operation since February 7, 1996, in India. The other
important type of facility in the EFT system is automated clearing houses.
These are the computer centers that handle the bills meant for deposits
and the bills meant for payment. In big companies pay is not disbursed
by issued cheques or issuing cash. The payment office directs the
computer to credit an employees account with the persons pay.
6) Telebanking: Telebanking refers to banking on phone services.. a
customer can access information about his/her account through a
telephone call and by giving the coded Personal Identification Number
(PIN) to the bank. Telebanking is extensively user friendly and effective in
nature.

To get a particular work done through the bank, the users may leave
his instructions in the form of message with bank.

Facility to stop payment on request. One can easily know about the
cheque status.

Information on the current interest rates.

Information with regard to foreign exchange rates.

Request for a DD or pay order.

DeMat Account related services.

And other similar services.

5) Mobile Banking: A new revolution in the realm of e-banking is the

emergence of mobile banking. On-line banking is now moving to the
mobile world, giving everybody with a mobile phone access to real-time
banking services, regardless of their location. But there is much more to
mobile banking from just on-lie banking. It provides a new way to pick up
information and interact with the banks to carry out the relevant banking
business. The potential of mobile banking is limitless and is expected to
be a big success. Booking and paying for travel and even tickets is also
expected to be a growth area. According to this system, customer can
access account details on mobile using the Short Messaging System

(SMS) technology6 where select data is pushed to the mobile device. The
wireless application protocol (WAP) technology, which will allow user to
surf the net on their mobiles to access anything and everything. This is a
very flexible way of transacting banking business. Already ICICI and HDFC
banks have tied up cellular service provides such as Airtel, Orange, Sky
Cell, etc. in Delhi and Mumbai to offer these mobile banking services to
their customers.
6) Internet Banking: Internet banking involves use of internet for
delivery of banking products and services. With internet banking is now
no longer confirmed to the branches where one has to approach the
branch in person, to withdraw cash or deposits a cheque or request a
statement of accounts. In internet banking, any inquiry or transaction is
processed online without any reference to the branch (anywhere
banking) at any time. The Internet Banking now is more of a normal
rather than an exception due to the fact that it is the cheapest way of
providing banking services. As indicated by McKinsey Quarterly research,
presently traditional banking costs the banks, more than a dollar per
person, ATM banking costs 27 cents and internet banking costs below 4
cents approximately. ICICI bank was the first one to offer Internet
Banking in India.

Benefits of Internet Banking:

Reduce the transaction costs of offering several banking services

and diminishes the need for longer numbers of expensive brick and
mortar branches and staff.

Increase convenience for customers, since they can conduct many

banking transaction 24 hours a day.

Increase customer loyalty.

Improve customer access.

Attract new customers.

Easy online application for all accounts, including personal loans and
mortgages

Financial Transaction on the Internet:

Electronic Cash: Companies are developing electronic replicas of

all existing payment system: cash, cheque, credit cards and coins.

Automatic Payments: Utility companies, loans payments, and

other businesses use on automatic payment system with bills paid
through direct withdrawal from a bank account.

Direct
Deposits: Earnings
(or
Government
payments)
automatically deposited into bank accounts, saving time, effort and
money.
Stored Value Cards: Prepaid cards for telephone service, transit
fares, highway tolls, laundry service, library fees and school lunches.
Point of Sale transactions: Acceptance of ATM/Cheque at retail
stores and restaurants for payment of goods and services. This system
has made functioning of the stock Market very smooth and efficient.
Cyber Banking: It refers to banking through online services. Banks
with web site Cyber branches allowed customers to check balances,
pay bills, transfer funds, and apply for loans on the Internet.
9) Demat: Demat is short for de-materialisation of shares. In short,
Demat is a process where at the customers request the physical stock is
converted into electronic entries in the depository system. In January
1998 SEBI (Securities and Exchange Board of India) initiated DEMAT
ACCOUNTANCY System to regulate and to improve stock investing. As on
date, to trade on shares it has become compulsory to have a share
demat account and all trades take place through demat.
How to Operate DEMAT ACCOUNT?
One needs to open a Demat Account with any of the branches of the
bank. After opening an account with any bank, by filling the demat
request form one can handover the securities. The rest will be taken care
by the bank and the customer will receive credit of shares as soon as it is
confirmed by the Company/Register and Transfer Agent. There is no
physical movement of share certification any more. Any buying or selling
of shares is done via electronic transfers.
If the investor wants to sell his shares, he has to place an order with
his broker and give a Delivery Instruction to his DP (Depository
Participant). The DP will debit hi s account with the number of shares sold
by him.
If one wants to buy shares, he has to inform his broker about his
Depository Account Number so that the shares bought by him are
credited in to his account.
Payment for the electronic shares bought or sold is to be made in the
same way as in the case of physical securities employee satisfaction to
managers and employees.

CHAPTER -8
REFERENCES :1 Data collected from websites:

www.google.com
www.fivepaise.com
www.moneycontrol.com
www.valuenotes.com

ANNEXURES
1. QUESTIONNAIRE
Dear Sir/Madam,
Name:
State:
I am a student of Sri Sai University Palampur presently doing a project on HRM in Public
Administration and corporate Sector,Equity market and Investment

I request you to kindly fill the questionnaire below and I assure you that the data generated shall be kept
confidential.

Q1.Do you invest in share market?

Ans. Yes( )

No( )

Q2.Which company do you like invest in?

Ans. Public( ) Govt.( ) Private( ) Semi private( )

Q3. Which one of these you invested your money?

Ans. IPO (

Equity (

Commodity (

Bonds (

Mutual Fund (

Forex (

Q4. Your purpose of investment.

Ans. Safety (

High Return (

Liquidity (

)Tax Saving (

)Any

other :
Q5. Give one basic purpose on which your investment decision based
Ans. Safety (

High Return (

Tax Saving (

Liquidity (

Any other :

Q6.

following according to your preferred attribute on which you

are willing to invest in these investment.

Investme Safe
nts

ty

High
Retur
n

Liquidi
ty

Tax
Savi
ng

Othe
rs

IPO
Equity
Bonds
Commodit
y
Mutual
Fund
Forex

Q7.

following according to your perception about their Return

RETURN

Investme Hig Modera Low

nts
h
IPO
Equity
Bonds
Commodit

te

y
Mutual
Fund
Forex

Q8.what return do u expect fromequity investment compared to other

market
Hjgh

Medium

Low

Q9.What are the factors that influence your decissionin making

investment
Broker

Friends

Q10 Are you satisfied for HDFC bank services

Satisfied fullsatisfied unsatisfied

Institute