auto loan at hdfc

7/31/2019 auto loan at hdfc

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A

RESEARCH PROJECT REPORT

ON

AUTO LOAN

Submitted in partial fulfilment of the requirement

For the award of degree

Of

MASTERS OF BUSINESS ADMINISTRATION

(FINANCIAL SERVICES)

SESSION (2010-2012)

SUBMITED TO :- SUBMITED BY:-

PROF. KALPANA DINESH

MATHUR IVth SEMESTER

DEPARTMENT OF MANAGEMENT STUDIES,

FACULTY OF COMMERCE AND MANAGEMENET

STUDIES,

JAI NARAIN VYAS UNIVERSITY, JODHPUR


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ACKNOWLEDGEMENT

It is my pleasure to be indebted to various people,

who directly or indirectly contributed in the development of this

work and who influenced my thinking, behaviour, and acts

during the course of study.

I express my sincere gratitude to PROF. KALPNA

MATHUR (HOD), worthy Principal for providing me an

opportunity to undergo on Research Project Report on AutoLoan at HDFC Bank.

I am thankful to Mr. HIMANSHU SOOD (BM)

for his support, cooperation, and motivation provided to me

during the research for constant inspiration, presence and

blessings.

Lastly, I would like to thank the almighty and my

parents for their moral support and my friends with whom I

shared my day-to-day experience and received lots of

suggestions that improved my quality of work.

Mr. Dinesh

(Name of the student)


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DECLARTION

I, DINESH, STUDENT OF MBA (F.S.) IVTH

SEMESTER, STUDYING AT JAI NARAYAN

VYAS UNIVERSITY (FACULTY OF

MANAGEMENT) JODHPUR, HEREBY DECLARE

THAT THE RESEARCH PROJECT REPORT ON

AUTO LOAN AT HDFC BANK SUBMITTEDTO JAI NARAYAN VYAS UNIVERSITY,

JODHPUR IN PARTIAL FULFILLMENT OF

DEGREE OF MASTERS OF BUSINESS

ADMINISTRATION IS THE ORIGINAL WORK

CONDUCTED BY ME.

THE INFORMATION AND DATA GIVEN IN THE

REPORT IS AUTHENTIC TO THE BEST OF MY

KNOWLEGE.

THIS RESEARCH PORJECT REPORT IS NOT

BEING SUBMITTED TO ANY OTHER

UNIVERSITY FOR AWARD OF ANY OTHER

DEGREE, DIPLOMA AND FELLOWSHIP.

MR. DINESH


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TABLE OF CONTENTS

Page No.

1. INTRODUCTION

2. ABOUT AUTO LOAN

3. RESEARCH METHODOLOGY

RESEARCH DESIGN

STUDY

DATA COLLECTION OBJECTIVES OF THE METHOD

SOURCE OF DATA

SAMPLING CONCEPTS

SAMPLE DESIGN

SCOPE OF STUDY

LIMITATIONS

4. DATA ANALYSIS AND INTERPRETATIONS

5. SWOT ANALYSIS

6. RECOMMENDATION AND FINDINGS

7. CONCLUSIONS

8. APPENDIX

ANNEXUREI QUESTIONNAIRE

9. BIBLIOGRAPHY


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INTRODUCTION

1. The Urban Cooperative Banks (UCBs), along with other cooperative

banks, were brought under the regulatory ambit of RBI by extending

certain provisions of Banking Regulation Act, 1949, (B.R.Act) effective

from March 1, 1966. Since then, the urban banking sector has witnessed

phenomenal growth in terms of reach, size, volume of operations and the

quantum of public deposits held by it. In the past, two Expert Committees

had examined the role assigned to UCBs and the regulatory issues related

to them. Report of the Committee on Urban Cooperative Banks, 1978

(Madhava Das Committee) provided a well-documented study of urban

banking sector in India and set standards of viability for sustained growth

of urban banks. The last Committee on UCBs (Marathe Committee) which

submitted its Report in 1992, had come out with far reaching

recommendations, and it had, primarily aimed at removal of fetters on

UCBs freedom. RBI has accepted most of these recommendations and

implemented them.

2. RBI felt that it should take stock of the performance of urban cooperativebanking sector after the introduction of a fairly deregulated regime in 1993

in the light of the recommendations of Marathe Committee Report and the

more deregulated scenario of the commercial banking sector consequent

to the recommendations of Narasimham Committee Report on Banking

Sector Reforms. This review is to particularly focus on the entry point

capital prescription, proliferation of weak banks, implementation of

prudential norms, inadequate legal provisions and problems created by

dual control of UCBs by RBI under B.R.Act, and State Governments under

the respective State Cooperative Societies Acts. While announcing the

monetary policy for the year 1999-2000, the Governor, Reserve Bank of

India desired to constitute a High Power Committee to address these

issues. Accordingly, the present High Power Committee was constituted

by the Governor, Reserve Bank of India, in May 1999 to review the

performance of urban cooperative banks and suggest necessary

measures to strengthen them.


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Composition of the Committee

Shri K. Madhava Rao Chairman

(Ex-Chief Secretary to the Government of Andhra Pradesh,

Hyderabad) Shri Y.H. Malegam (Member Director, Central Board of RBI and

Chartered Accountant, Mumbai)

Shri Subhash S. Lalla (Member Commissioner for Cooperation &

Registrar of Cooperative Societies Government of Maharashtra, Pune)

Dr. Sawai Singh Sisodia (Member President, National Federation for

Urban Cooperative Banks & Cooperative Societies New Delhi)

Dr. Mukund L. Abhyankar (Member Director, Cosmos Co-op. Bank

Ltd., Pune)

Shri P.S. Vyas (Member Managing Director Gujarat State Co-op. Bank

Ltd., Ahmedabad)

7. Shri M.M.S. Rekhrao (Member Chief General Manager Reserve

Bank of India Urban Banks Department Central Office, Mumbai)

Shri O.P. Sharma (Member-Secretary Chief General Manager Reserve

Bank of India Urban Banks Department Mumbai Regional Office.

Mumbai)

3. Terms of Reference :

i. To evolve objective criteria to determine the need and potential for

organizing urban cooperative banks, review the existing entry point

norms and examine the relevance of special dispensation for less/least

developed areas etc.

ii. To review the existing policy pertaining to branch licensing and area of

operation of urban cooperative banks.

iii. To consider measures for determining the future set up of

weak/unlicensed banks.

iv. To examine the feasibility of introducing capital adequacy norms for

UCBs.

v. To examine the need for conversion of cooperative credit societies into

Primary Cooperative banks.


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vi. To suggest necessary legislative amendments to B.R.Act and

Cooperative Societies Act of various states for strengthening the urban

banking movement.

4. APPROACH OF THE COMMITTEE

The Committees approach to the task assigned to it by the RBI is

governed by three important considerations viz.,

i. Preserving cooperative character of UCBs,

ii. Protecting depositors interests and

iii. Ensuring systemic stability of the banking sector.

PRESERVING COOPERATIVE CHARACTER

It is necessary to recognize the strengths and weaknesses of urban

cooperative banks in the field of much needed micro credit and how best

to foster and encourage UCBs in rendering this service to the small

borrower who is not as welcome at the doors of commercial banks, as at

the hands of UCBs. The representatives of UCBs and their federations

constantly claim that they have a distinct role in the banking sector as theyand the small borrower are made for each other and that any amount of

expansion of branch net work of commercial banks, including RRBs, will

not solve the problem of the small borrower without the presence of UCBs.

The Committee made conscious efforts to go into the veracity of this claim

of UCBs. The Committee organized a survey of 103 clients that

approached 13 UCBs on two different dates. The response of these

clients is a resounding confirmation of the claims of UCBs. 85% of the

clients said that they had come to UCBs because they are not entertained

by the commercial banks; 85% of the clients stated that UCBs provide

faster service and 82% of clients felt that UCBs provide more personalised

service than commercial banks.

5. Not satisfied with this evidence, the Committee talked to the field officers

of RBI who are now in service as well as some who retired from service.

They also confirmed that UCBs predominantly cater to the persons of


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small means and they unhesitatingly stated that UCBs must be

encouraged to continue and expand. Our interaction with some of the

senior level officers of commercial banks netted the same result. The

State Government Officers have the same word of praise for the UCBs.

The data with RBI also shows that 84.1% of UCBs fulfill the stipulated

priority sector lending of 60% of the banks total advances. Very few UCBs

asked for reduction of 60% target though the priority sector target for

commercial banks is only 40% and which is not always achieved. This

shows what darlings UCBs are in the context of giving micro credit to a

multitude of small borrowers.

6. The yeomen service being rendered by UCBs to micro credit enterprises

and small borrower comes as sweet music to the ears of the Committee.

But the Committee also hears some harsh and unpleasant notes in the

background. Some of them are too jarring to be ignored even as one loves

to concentrate on hearing the sweet notes.

7. Enormous increase in the number of UCBs in the last 6 years is

something which requires a serious focus by the RBI. If the increase is

due to relaxed entry norms and the promoters are genuine cooperators,we can relax. If the new entrants are not genuine cooperators and if some

of them are promoted by the people who had to quit the NBFC sector

because of stringent regulatory framework put in place by RBI, then we

have a lot to worry about. The Committee has no wherewithal to go into

this sensitive but important aspect. It would urge RBI to take appropriate

steps to probe into the whispers we hear that some of the NBFCs are

getting into UCB sector through the backdoor.

8. The second cause of our concern is the number of weak UCBs. It is just

not the number. We should also look at the causes for the sickness. If the

sickness is due to some genuine commercial decisions going wrong, the

problem is less serious. But if a large number of banks became weak due

to motivated actions of the Managing Committees, then there is greater

cause for concern. Theoretically, Managing Committees are answerable to

the General Body. This answerability works if the membership of the


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UCBs is genuine and the members take active interest in the affairs of the

UCBs. Here again we hear some deep throats conveying things to the

contrary that low entry capital norms have facilitated small group of

persons or a few families establishing UCBs by raising the capital and

taking names of voiceless persons on the membership rolls. We also hear

more open complaints that the attendance at the General Body meetings

is alarmingly low. If the low turn out at the General Body meetings is due

to the confidence of the genuine members in the impartiality, integrity and

efficiency of Managing Committee to deliver the goods, the problem is less

serious. But if it is because of bogus membership, the problem becomes

acute.

9. The third cause for concern is the quality of professionalism. If there is

predominant presence of genuine cooperators in the Management

Committee and General Body, their experience, common sense and

commitment to the bank can partly compensate for lack of

professionalism. But if what the deep throats say is true, lack of

professionalism can be fatal to the health of the UCBs.

10. Thus, we find that UCBs have their great strengths but not without theirshare of deficiencies. The Committee has, therefore, to keep this mixed

bag in mind while recommending certain facilities and concessions from

RBI and State Governments and at the same time suggest stringent

norms to be fulfilled by UCBs.

PROTECTING DEPOSITORS INTEREST

11. An UCB is not like any other cooperative society. The good and bad

aspects of a normal cooperative society benefit or harm only its members,

since these societies are organized and run by the members and for the

members. But UCBs do more than that. UCBs accept deposits from the

public and, hence, their actions affect the interests of the depositors. Since

depositors place their funds with UCBs in good faith, the UCBs become

trustees of the depositors money. Hence, service to depositors becomes

a higher duty than service to members. Thus, the moment a cooperativesociety graduates into a bank, its actions and discipline have to be judged


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in altogether a different context. Champions of cooperative movement

claim that since cooperatives are democratic organizations, they should

be left to self-discipline and outside bodies should not trample their

democratic rights. This argument makes perfect sense as long as they

remain normal cooperative societies. But when they aspire to take on

banking functions their democratic rights have to be subordinated to the

interests of the depositors. Safeguarding the interest of depositors cannot

be left only to the Management Committee and General Body. We need

an external agency to play the role of an umpire. If the cooperators are not

prepared to accept external discipline they are free to remain as normal

cooperatives. If some existing UCBs feel uncomfortable with external

discipline they have all the freedom in the world to return the deposits of

the public and revert to the status of a normal society. The banking

function necessitates subordination of democratic rights of the members to

the duty of serving the depositors. Even the Fundamental Rights of an

individual enshrined in the Constitution of a great democratic country like

India are subject to the similar rights of another individual. The inalienable

and the unalterable Fundamental Rights of one individual end when the

Fundamental Right of another individual begins. UCBs, therefore, cannot

complain when stricter financial norms are prescribed or professional

content in the composition of Management Committee is stipulated to

safeguard the interests of the depositors.

ENSURING SYSTEMIC STABILITY

12. No bank can act in isolation. Banking activity is by nature a network. Acts

of one bank have a ripple effect on the system as a whole. Moreover, thebanking activity of UCBs is fairly large. The deposits and advances of

UCBs constituted 7% and 8.8% respectively of the deposits and loans of

scheduled commercial banks as at the end of 31 March, 1999. What is

more, the rate of growth of deposits as well as loans of UCBs is much

higher than commercial banks. With such considerable share in banking

sector, failure or serious sickness in UCB sector will have serious

adverse effect on banking system. Failure of a bank like BCCI in U.K.,

Loans and Saving Societies in U.S. became a matter of great concern for


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other countries. It is, therefore, of utmost importance that the regulator

prescribes and strictly enforces financial and managerial discipline in

such a way that the performance of UCBs contributes to the over all

stability of the banking sector. Each UCB may not know or may not care

for the consequences of its action on the systemic stability. Herein lies

the role of the Regulator to delineate the road map and install the green,

amber and red lights.

13. In making our recommendations regarding the area of operation of the

bank we have, therefore, been guided by the principle that a bank will

initially operate within a district or within adjoining districts because it is

mainly people within a district or within adjoining districts who are likely to

have a common need and a common identity which creates the

environment in which it becomes necessary for an UCB to emerge. As

the bank extends its area of operation, this cooperative character tends to

weaken and it assumes more and more the character of a commercial

bank. Therefore, such extension must be accompanied by prescription of

conditions under which commercial banks are allowed to operate.

14. Ideally, the members of an UCB should have the same or nearly the same

stake in the capital of the bank. However, the need to build up a sizeable

capital structure and the unequal borrowing needs of the members

inevitably result in some members holding a larger part of the capital than

others. This also weakens the cooperative character and, therefore,

creates the need to have some restriction on individual holdings.

15. Ideally also, all depositors and borrowers should be members. However,

the need to increase the deposit base as also to gainfully employ the

funds generated have made it necessary for an UCB to have a large

number of depositors and borrowers. If all borrowers become members it

would place a considerable strain on the administrative requirements

attached to the rights of members to elect the Board of Directors and to

participate in the governance of the bank. Therefore, the concept of

nominal membership has developed whereby such members do not enjoy


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the essential rights of membership to participate in the governance of the

bank. This development also weakens the cooperative character of the

bank and, therefore, it becomes necessary to restrict the extent of nominal

membership.

16. To protect the interests of the depositors it is necessary to ensure that:-

i. only those banks are licensed which are financially sound and

efficiently managed;

ii. there are systems in place to identify, at an early stage, incipient signs

of weakness in the bank;

iii. timely remedial action is taken so that a weak bank is not allowed to

become a sick bank; and

iv. Sickness in a bank is not allowed to progress beyond the stage where

it would prejudice the interests of the depositors.

17. At the inception, financial soundness of the bank can be ensured by

adequate entry point norms. These norms have to be evolved taking into

account relevant criteria like the location of the bank and the area of its

operation. Entry point norms can also be used as an instrument to

encourage the growth of such banks in areas where greater need exists

and to discourage their growth in areas where such a need is not

perceived. Efficient management of the bank could also be ensured by

initially specifying other non-financial criteria like the composition of the

board of directors, the suitability of the promoters and the adequacy of the

proposed management.

18. The systems to identify, at an early stage, incipient signs of weaknessrequire:-

i. reliability and adequacy of the financial information periodically

produced by the bank;

ii. an independent and efficient audit;

iii. periodic and adequate inspection by the regulatory authority; and

iv. A set of tools by which the financial strength of the bank can be

measured.


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19. It is, therefore, necessary that the annual financial statements of UCBs

are, in terms of their context and disclosure, comparable, as far as

possible, with the financial statements of commercial banks and that they

are prepared with the same discipline as regards provisioning and

valuation norms. It is also necessary that these financial statements are

subjected to audit by independent external auditors in exactly the same

manner as the financial statements of commercial banks are subjected to

audit. UCBs also need to be inspected by the regulatory authority in

exactly the same way as commercial banks are inspected and, in so far as

off-sight inspection is concerned, they must be required to furnish to the

regulatory authority the same information as is required from commercial

banks.

20. Finally, the tools by which the financial soundness of commercial banks is

measured must also be made applicable to UCBs. These would includes:

i. capital adequacy norms

ii. permissible limits of non-performing assets

iii. exposure limits

iv. Avoidance of interest rate and maturity mis-matches and the like.

21. In the case of commercial banks, the regulatory authority i.e. the RBI has

a number of options by virtue of the powers conferred on the RBI by the

Banking Regulation Act, 1949 to adequately monitor performance, control

the development of sickness and take remedial action.

These include:

i. The power to give directions to the bank (Section 35A);

ii. The need for RBI approval for appointment or re-appointment or

termination of appointment of the Chairman, Managing or Whole-time

Director, Manager or Chief Executive Officer (Section 35B);

iii. The power to caution or prohibit a banking company from entering into

any particular transaction or class of transactions, to appoint an

observer on the Board of Directors and to require the banking

company to make desired changes in the management (Section 36);


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iv. The power to remove managerial and other personnel and to appoint

additional directors (Part II - A),

The power to acquire undertakings of banking companies in certain

cases (Part II- ), and

v. The power to ask the High Court to order suspension of the business

of the banking company or its winding up or to ask the Government of

India for an order for reconstitution or amalgamation of the banking

company (Part III).

22. These options provide the RBI with the tools, whereby, after weakness in

a banking company is detected, it can take timely action to prevent a weak

bank becoming sick. Unfortunately Sections 35B, 36 (in so far as it relates

to changes in management) and Parts II-A, II-C and the relevant clauses

of Part III have been made inapplicable to urban cooperative banks.

Therefore, the tools available to the RBI to rehabilitate weak UCBs are

severely restricted.

23.However, RBIs obligation to ensure that sickness in an UCB is not

allowed to spread beyond the point at which the interests of the depositors

are not prejudiced, remains. If, therefore, RBI is not able orwillingto stop

the urban cooperative bank from carrying on banking business when it has

become sick, it becomes equally incumbent on the RBI to provide that a

scheme is formulated which ensures that any further sickness does not

prejudice the interests of the depositors.

24. Urban cooperative banks form a significant segment of the financial

system both in terms of their number and also their share in the totaldeposits of the banking system. Continued weakness or failure of a

significant number of urban cooperative banks reflect adversely on the

financial system as a whole. Therefore, RBI has a responsibility to ensure

that the UCB sector functions in a healthy manner.

25. As pointed out by the Marathe Committee, with greater liberalisation of the

commercial banking sector, the urban cooperative banking sector will

need to operate in a more competitive environment. It is, therefore,


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necessary that it has a reasonable ground level treatment and is not

saddled with irksome restrictions regarding its operations.

26. Perhaps the most significant factor which adversely affects the

performance of urban cooperative banks and which prevents timely and

adequate remedial action to prevent sickness is the dual control over the

urban cooperative banking sector. The Committee is convinced that

unless the dual control, is replaced by unitary control, it will not be

possible for a healthy urban cooperative banking sector to subsist. This

unitary control must recognize that whereas the cooperative character of

UCBs may be controlled by the Registrar of Cooperative Societies, its

banking functions must necessarily be under the sole control of the RBI.

27. It is equally important to recognize that an UCB can function effectively in

a competitive environment only if it has freedom to operate and is allowed

to carry on all the activities which are permissible to a commercial bank.

The forms of business in which banking companies may engage are spelt

out in Section 6 of the Banking Regulation Act. The judicious exercise of

these powers is controlled by the RBI through its power to give directions

(Section 35A) and its power to caution or prohibit a banking company from

entering into any particular transaction or class of transactions (Section

36). All these sections are equally applicable to an UCB. Subject to the

normal regulatory safeguards, an UCB must be allowed to operate in all

lines of business available to a commercial bank and must be given such

freedom in its operating practices as is necessary, so long as it does not

dilute the essential cooperative character of the bank.

28. In its interaction with a cross section of the representatives of State

Governments, the urban cooperative banking sector, and eminent

cooperators connected with urban banking movement, the Committee

dwelt on certain operational and regulatory issues raised by these

participants which are strictly not within the realm of Terms Of Reference

of this Committee but which have a considerable bearing on the Terms Of

Reference and healthy functioning of UCBs. These issues are addressed

by the Committee in the Chapter titled Other Related Issues.


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29. The Committee has more or less followed the methodology adopted by

the earlier two Committees. It has devised a comprehensive questionnaire

on each of the Terms Of Reference to elicit the views of select urban

banks, select commercial banks, Indian Banks Association, Government

of India, State governments, State and National Federations of Urban

Cooperative Banks, eminent cooperators and people interested in the

UCB sector.

30. The Committee also had extensive interaction with a cross section of the

above groups at Ahmadabad, Bangalore, Bhopal, Calcutta, Chennai,

Delhi, Guwahati, Hyderabad, Mumbai and Pune to have a grass root feel

on the Terms Of Reference and the region specific issues concerning

urban cooperative banks. These interface sessions have provided

invaluable inputs to the Committee. The Committee also had an

opportunity, in these interface sessions, to gauge the efficacy of the

existing regulatory dispensation and irritants therein. Besides, the

responses to questionnaire and interface sessions, the Committee has

also relied on reports of various Expert Committees and circulars issued

by RBI.

31. With a view to have a focused study on the Terms of Reference, the

Committee constituted three Working Groups to separately examine the

issues pertaining to Terms of Reference. After an indepth examination of

existing policies, these Working Groups have submitted their approach

papers to the Committee. The approach papers were deliberated at length

in the meetings of the Committee and, thereafter, it arrived at its

recommendations set out in this Report.


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PUBLIC SECTOR AND PRIVATE SECTOR BANKING

A private sector is an economy is made up of all businesses and firms owned

by ordinary members of the general public. It also consist of all the private

households in which people live, whereas, public sector is an economy is

owned and controlled by a government. It consist of government businesses

and firms ,and goods and services provided by the government, such as the

national health service, state education, jobs, roads, public parks and law and

order.

Private Sector are generally small business organizations run by private

individuals or groups (not shareholders) and are not listed in the StockExchange. Private companies are also unregulated by a federal authority.

The Public Sector are companies owned by shareholders and available for

public purchase through the stock exchange. Public companies are regulated

by a federal exchange commission, but are available for purchase by foreign

investors - such as China's current shares in GM.

For instance; A public company can become private by having ALL shares inits Stock Exchange purchased by an individual, a small group of investors, or

another company that is privately held.

PUBLIC SECTOR BANKING

Among the Public Sector Banks in India, United Bank of India is one of the

14 major banks which were nationalized on July 19, 1969. Its

predecessor, in the Public Sector Banks, the United Bank of India Ltd.,was formed in 1950 with the amalgamation of four banks viz. Comilla

Banking Corporation Ltd. (1914), Bengal Central Bank Ltd. (1918), Comilla

Union Bank Ltd. (1922) and Hooghly Bank Ltd. (1932).

Oriental Bank of Commerce (OBC), a Government of India Undertaking

offers Domestic, NRI and Commercial banking services. OBC is

implementing a GRAMEEN PROJECT in Dehradun District (UP) and

Hanumangarh District (Rajasthan) disbursing small loans. This Public


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Sector Bank India has implemented 14 point action plan for strengthening

of credit delivery to women and has designated 5 branches as specialized

branches for women entrepreneurs.

The following are the list of Public Sector Banks in India.

Allahabad Bank

Andhra Bank

Bank of Baroda

Bank of India

Bank of Maharashtra

Canara Bank

Central Bank of India

Corporation Bank

Dena Bank

IDBI Bank

Indian Bank

Indian Overseas Bank

Oriental Bank of Commerce

Punjab & Sind Bank Punjab National Bank

Syndicate Bank

UCO Bank

Union Bank of India

United Bank of India

Vijaya Bank

List of State Bank of India and its subsidiary, a Public Sector Banks

State Bank of India

o State Bank of Bikaner & Jaipur

o State Bank of Hyderabad

o State Bank of Indore

o State Bank of Mysore

o State Bank of Saurastrao State Bank of Travancore
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PRIVATE SECTOR BANKING

Private banking in India was practiced since the beginning of banking

system in India. The first private bank in India to be set up in Private

Sector Banks in India was IndusInd Bank. It is one of the fastest growing

Bank Private Sector Banks in India. IDBI ranks the length largest

development bank in the world as Private Banks in India and has

promoted a world class institutions in India.

The first Private Bank in India to receive an in principle approval from the

Reserve Bank of India was Housing Development Finance Corporation

Limited, to set up a bank in the private sector banks in India as part of the

RBI's liberalisation of the Indian Banking Industry. It was incorporated in

August 1994 as HDFC Bank Limited with registered office in Mumbai and

commenced operations as Scheduled Commercial Bank in January 1995.

ING Vysya, yet another Private Bank of India was incorporated in the year

1930. Bangalore has a pride of place for having the first branch inception

in the year 1934. With successive years of patronage and constantly

setting new standards in banking, ING Vysya Bank has many credits to itsaccount.

List of Private Banks in India

Bank of Punjab

Bank of Rajasthan

Catholic Syrian Bank

Centurion Bank

City Union Bank

Dhanalakshmi Bank

Development Credit Bank

Federal Bank

HDFC Bank

ICICI Bank

IndusInd Bank

ING Vysya Bank
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20/65

Banks like HDFC, standard chartered, ICICI, and Citibank now bring your

Bank Account and Debit card to your fingertips. With Mobile commerce, you

can perform a wide range of query-based transactions from your Mobile

Phone, without even making a call.

HDFC bank one of India's leading financial institutions, offering complete

financial solutions that encompass every sphere of life. From commercial

banking, to stock broking, to mutual funds, to life insurance, to investment

banking, the group caters to the financial needs of individuals and corporate.

The group has a net worth of over Rs. 2,500 crore, employs around 6,700

people in its various businesses and has a distribution network of branches,

franchisees, representative offices and satellite offices across 250 cities and

towns in India and offices in New York, London, Dubai and Mauritius. The

Group services over 1.6 million customer accounts.

CREATING BANKING HISTORY:

Established in 1984, The HDFC bank group has long been one of India's

most reputed financial organizations. In February 2003, HDFC bank Finance

Ltd, the group's flagship company was given the license to carry on banking

business by the Reserve Bank of India (RBI). This approval creates banking

history since HDFC bank Finance Ltd. is the first company in India to convert

to a bank.

THE COMPLETE BANK:

At HDFC Bank, we address the entire spectrum of financial needs for

individuals and corporate. From Retail Finance to Equities, Mutual Funds to

Life Insurance and Investment Banking, we have the products, the

experience, the infrastructure and most importantly the commitment to deliver

pragmatic, end-to-end solutions that really work.


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BUSINESS

HDFC Bank Ltd

HDFC Bank Ltd is a one stop shop for all banking needs. The bank offers

personal finance solutions of every kind from savings accounts to credit

cards, distribution of mutual funds to life insurance products. HDFC Bank

offers transaction banking, operates lending verticals, manages IPOs and

provides working capital loans. HDFC bankhas one of the largest and most

respected Wealth Management teams in India, providing the widest range of

solutions to high net worth individuals, entrepreneurs, business families and

employed professionals.

HDFC bankOld Mutual Life Insurance Ltd

HDFC bankOld Mutual Life Insurance Ltd is a 74:26 joint venture between

HDFC Bank Ltd., its affiliates and Old Mutual plc. A Company that combines

its international strengths and local advantages to offer its customers a wide

range of innovative life insurance products, helping them takes important

financial decisions at every stage in life and stays financially independent.

The company covers over 3 million lives and is one of the fastest growing

insurance companies in India.

HDFC bankSecurities Ltd

HDFC bankSecurities is one of the largest broking houses in India with a wide

geographical reach.

HDFC banksecurities operations include stock broking and distribution of

various financial products including private and Secondry placement of debt,

equity and mutual funds.

HDFC bankSecurities operate in five main areas of business:

Stock Broking (retail and institutional)

Depository Services

Portfolio Management Services

Distribution of Mutual Funds


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BANK'S VISION AND MISSION

The Bank has codified its ethos, values, culture and aspirations in the

following Vision and Mission statements:

Vision:

To be a values driven modern bank aspiring for excellence in customer

service, perpetually enhancing shareholders value and contributing to the

economic development of society.

Mission:

To continue to be a premier bank of Rajasthan with all India presence,

committed to empower its personnel for providing excellent, personalised and

quality customer service by adoption of modern technology, achieving

sustained and profitable growth in business thereby increasing shareholders

value and contributing to the welfare of the society.

SENIOR MANAGEMENT

Mr. Uday S. Kotak

Executive Vice Chairman and Managing Director

Mr. Uday HDFC bankis the Executive Vice-Chairman and Managing Director

of the Bank, and its principal founder and promoter. Mr. HDFC bankis an

alumnus of Jamnalal Bajaj Institute of Management Studies.

In 1985, when he was still in his early twenties, Mr. HDFC bankthought of

setting up a bank when private Indian banks were not even seen in the game.

First HDFC bankCapital Management Finance Ltd (which later became HDFC

bankFinance Ltd), and then with HDFC bankFinance Ltd, HDFC bankbecame

the first non-banking finance company in India's corporate history to be

converted into a bank. Over the years, HDFC bankGroup grew into several

areas like stock broking and investment banking to car finance, life insurance

and mutual funds.

Among the many awards to Mr Kotak's credit are the CNBC TV18 Innovator

of the Year Award in 2006 and the Ernst & Young Entrepreneur of the Year


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Award in 2003. He was featured as one of the Global Leaders for Tomorrow

at the World Economic Forum's annual meet at Davos in 1996. He was also

featured among the Top Financial Leaders for the 21st Century by Euro

money magazine. He was named as CNBC TV18 India Business Leader of

the Year 2008 and as the most valued CEO by business world in 2010.

Mr. C Jayaram

Joint Managing Director

Mr. C. Jayaram, is a Joint Managing Director of the Bank and is currently in

charge of the Wealth Management Business of the HDFC bankGroup. An

alumnus of IIM Kolkata, he has been with the HDFC bankGroup since 1990

and member of the HDFC bankboard in October 1999. He also oversees the

international subsidiaries and the alternate asset management business of

the group. He is the Director of the Financial Planning Standards Board,

India. He has varied experience of over 25 years in many areas of finance

and business, has built numerous businesses for the Group and was CEO of

HDFC bankSecurities Ltd. An avid player and follower of tennis, he also has a

keen interest in psychology.

Mr. Dipak Gupta

Joint Managing Director

An electronics engineer and an alumnus of IIM Ahmadabad, Mr. Gupta has

been with the HDFC bankGroup since 1992 and joined the board in October

1999.

He heads commercial banking, retail asset businesses and looks after group

HR function. Early on, he headed the finance function and was instrumental inthe joint venture between HDFC bankand Ford Credit International. He was

the first CEO of the resulting entity, HDFC bankPrimus Ltd.

AWARDS

At HDFC bankGroup we take a client-centric view and constantly innovate to

provide you with the best of services and infrastructure. We have regularly

received accolades that stand testimony to our success in this endeavor.

Some of our recent achievements are:


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Banking

ICAI Award

Excellence in Financial Reporting under Category 1 - Banking Sector

for the year ending 31st March, 2010

Asiamoney

Best Local Cash Management Bank 2010

IDG India

HDFC bank won the CIO 100 'The Agile 100' award 2010

IDRBT

Banking Technology Excellence Awards Best Bank Award in IT

Framework and Governance Among Other Banks' - 2009

Banking Technology Award for IT Governance and Value Delivery,

2008

IR Global Rankings

Best Corporate Governance Practices - Ranked among the top 5

companies in Asia Pacific, 2009

Finance Asia

Best Private Bank in India, for Wealth Management business, 2009

HDFC bank Royal Signature Credit Card

Was chosen "Product of the Year" in a survey conducted by Nielsen in

2009

IBA Banking Technology Awards

Best Customer Relationship Achievement - Winner 2008 & 2009

Best overall winner, 2007

Best IT Team of the Year, 4 years in a row from 2006 to 2009

Best IT Security Policies & Practices, 2007

Euro money

Best Private Banking Services (overall), 2009


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Investment Bank Best Investment Bank in India, 2010

Best Equity House in India, 2010

Best Broker in India, 2010

Asia money

Best Domestic Equity House, 2010

Best Local Brokerage in the Asia money Brokers Poll 2010

Global Finance

Best Investment Bank in India, 2010

Euro money Real Estate Poll

Best Bank for Equity Finance in India, 2010

Asset Asian Awards

Best Domestic Investment Bank, 2010

Finance Asia Country Awards for Achievement

Best Investment Bank in India, 2006, 2007, 2008, 2009 & 2010

Best Equity House in India, 2008 & 2010

Asia money Best Domestic Bank Awards

Best Domestic Equity House, 2008, 2009 & 2010

IFR Asia

India Equity House of the Year, 2008

Global Finance

Best Investment Bank in India, 2008, 2009 & 2010

Asset Asian Awards

Best Domestic Investment Bank, 2006, 2007, 2008 & 2009

CORPORATE RESPONSIBILITY

Community investment and development HDFC bankviews Corporate Social

Responsibility as an investment in society and in its own future. HDFC


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EDGE SAVINGS ACCOUNT:HDFC Banks Edge Savings Account is acomplete financial package customized to suit individual banking needs.

Its constant endeavor is to enable regular financial transactions through

online platform so that most of payments can be made directly through

your account or card.Features & Benefits

Wide ATM access through the HDFC Bank Debit Card

One can walk into any HDFC BANKor HDFC Bank ATMs to withdraw

cash or enquire balance at no extra charge!

Multiple Access Channels Access

An account through phone, mobile phone or internet to get information

about account balance or track transactions. One can even transfer funds

through Phone Banking or Net Banking.

Financial payments facilitated through the savings account

Use the free Payment Gateway to make online payments for utility bills,

credit cards online trading of shares or even online shopping.

Quick and easy funds transfer

Quick funds transfer to a third party account with another Bank is available

across 15 locations through Net Banking. Also get a multi-city cheque

book so that money from account is received by the beneficiary in the

fastest possible time.

Free investment account

One can open an investment account, and use the Net Banking facility to

purchase/redeem mutual funds online while directly debiting / crediting

your Bank Account. Besides this you get a consolidated view of all your

mutual fund investments across schemes with updated returns status,

latest NAV information and research reports.

Attractive returns


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Earn better returns in your savings account, with our 2-Way Sweep facility

that automatically sweeps out idle funds, above a threshold, from your

account into Term Deposits. These Term Deposits sweep back into your

account to meet fund requirements when your withdrawals exceed the

balance available in your account, thereby providing you maximum

liquidity.

PRO SAVINGS ACCOUNT

HDFC Banks Pro Savings Account is an account packed with powerful

features to provide a superior banking experience at a very comfortable

balance requirement. They provide a relationship manager who will

specifically take care of banking and investment needs.

Features & Benefits

Free ATM access all domestic VISA ATM network

Walk into any VISA ATM in India to check balance or withdraw cash

absolutely free. no longer have to worry about locating your Bank or

Partner Bank ATM Use the first VISA ATM that you spot, for cash

withdrawal or balance enquiry transactions.

Multiple access channels

Access your account through phone, mobile phone or internet to get

information on your account balance or track your transactions. You can

even transfer funds through Phone Banking or Net Banking.

Free investment account

One can open an investment account, and use the Net Banking facility to

purchase/redeem mutual funds online while directly debiting / crediting

bank account. Besides this get a consolidated view of all the mutual fund

investments across schemes with updated returns status, latest NAV

information and research reports.



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Use our free Payment Gateway to make online payments for utility bills,

credit cards, online trading of shares or even online shopping.


Quick funds transfer to a third party account with another Bank is available

across 15 locations through Net Banking. Also get a multi-city cheque

book so that money from account is received by the beneficiary in the

fastest possible time

Attractive returns



account into Term Deposits. These Term Deposits sweep back into your

account to meet fund requirements when your withdrawals exceed the

balance available in your account, thereby providing you maximum

liquidity.

Dedicated relationship manager

You get a one point contact for all your banking related queries and

transactions. Your relationship manager will also help you with financial

planning and sound investment decisions.

Free banking transactions

You can issue demand drafts or send cheques for collection on branch

locations without any charge to your account.

ACE SAVINGS ACOUNT

HDFC Bank's Ace Savings Account has been designed as a gateway to a

world of financial benefits and privileged banking transactions. The

account carries benefits ranging from personal investment advisory

services to concierge services to free banking transactions. Onewill find

that this package of services and privileges is unmatched by any other

savings account in the market.


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Features & Benefits

Free access at all domestic and international VISA ATMs

No longer have to worry about locating your Bank or Partner Bank ATM -

Use the first VISA ATM that you spot, for free cash withdrawal or balance

enquiry transactions. So walk into any VISA ATM in India or abroad to

withdraw cash or for balance enquiry.

Multiple access channels

Access the account anytime through land line, mobile phone or internet to

get information on account balance or track transactions. One can even

transfer funds through Phone Banking or Net Banking.


Use the free HDFC bankPayment Gateway to make online payments for

utility bills, credit cards, online trading of shares or even online shopping.

All this at the click of a mouse!


Transfer funds easily and with speed, to a beneficiary account at anotherbank. One can avail of this facility by walking into any of branches or by

simple logging on to Net Banking. Also get a free multi-city cheque book

so that money from your account is transferred to the beneficiary's

account at any of branch locations, in the fastest possible time.

Free banking transactions

One can issue demand drafts or send cheques for collection at all

branches for no extra charge.

Attractive returns



account into Term Deposits. These Term Deposits sweep back into

account to meet fund requirements when withdrawals exceed the balance

available in the account, thereby providing maximum liquidity.


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CURRENT ACCOUNT

HDFC Bank offers unparalleled advantages with its three Current Account

offerings. Whether small/ mid size business or an enterprise spread

across multiple locations in the country, would find a Current Account

that's just designed for you. These Current accounts offer attractive

returns along with personalized banking services at three convenient

average quarterly balances(AQB)levels of Rs. 25000 (HDFC BANKEDGE

SAVINGS ACCOUNT),Rs. 50000 (HDFC BANKPRO SAVINGS

ACCOUNT) and at Rs250000(HDFC BANKACE SAVINGS

ACCOUNT).The average quarterly balance levels as well the

corresponding services and benefits try to ensure the various customer

needs and requirements. With features ranging from Free DDs, Free

Cheque Collection, Free At -Par Cheque facility to Free Trading Account &

free Demat Account, and more!

Thus the three account opening options in savings account are as

mentioned above:

1. Edge Current AccountIn need of a well equipped bank account to keep pace in all the

business endeavors. They offer the HDFC bank Edge Current

Account, armed with HDFC bank2-Way Sweep and the entire gamut of

Banking Privileges, providing that extra edge to get ahead. The feature

rich HDFC bankEdge Current Account is the ideal way to make money

work harder.

Features & Benefits

Multi City Banking

Current account/s with HDFC Bank will be recognized in every other

branch. One can just walk into a HDFC Bank branch in any of our

branches across country to satisfy all the banking needs.

2. 2 - Way Sweep: Term Deposit linked Current Account

HDFC bank2-Way Sweep ensures that money never stops workingfor you. Daily balances, above a threshold level, in Current Account


32/65

are automatically swept out into Term Deposits (TD). This 'swept

out amount' is brought back into account to meet fund requirements

when withdrawals exceed the balance available in the account (or

when the account balance goes below the specified threshold

level.) With HDFC bank2-Way Sweep you enjoy the twin

advantages of attractive returns & maximum liquidity.

Free Demand Drafts and Pay Orders

Enjoy the benefit of our free Demand Drafts, payable at HDFC Bank

Branch location in India.

At-par ChequesGet free At-par Cheques that are treated as 'local clearing' cheques

across all branch locations. All these at nominal costs.

Cheque Collection

All Outstation cheques, drawn on any of branch locations, are collected 'at

nominal charge' for you. The strong network of correspondent banks

enables us to collect cheques from 1600 locations across India at faster

speed and minimal cost.

Mobile Banking and Alerts

Our Mobile Banking & Alerts service enables to access bank account on

Mobile Phone. One can access all your standing instructions (SI), any

large credits or debits, available balance, balance below AQB, any SI

failure and SIs successfully executed will be intimated to you via SMS


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AUTO LOAN

As per the various Auto Loan reviews, there is a general format observed in

the way automobile finance products are designed. This is a loan scheme thatis designed specifically to enable borrowers to acquire their own vehicles.

Auto Loan is usually secured, with either a charge on the valuation of the vehicle

to be acquired or collateral, in the form of securities owned.

It is usually in the form of a term loan.

According to many Auto Loan reviews, since the easy availability of loans, there

has been 60% increase in the sale of automobiles, through Auto Loan options.

The term, auto loan is different from the term car loan and encompasses allkinds of vehicles, such as two-wheelers, used and new cars etc.

The two-wheeler segment has a smaller part in the market share of auto loans,

as the cost of acquisition of vehicles is less.

All FIs offering loans have a screening procedure or auto loan eligibility norms

that varies with each bank.

Auto Loan Interest Rates:

Many banks offer you automobile loans at auto loan rates that vary between 9%

per annum to about 15% per annum. This bunch includes all popular banks,

namely:

a) HDFC Bank: 12.75% p.a.

b) ICICI Bank: 14.25% p.a.

c) Dena Bank: 11% p.a.

d) Punjab and Sind Bank: 12.75% p.a.e) Dhanalakshmi Bank: 13.5% p.a.

The auto loan rates are determined as per the base rate that is set according to

the benchmark rate by the Reserve Bank of India.


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Auto Loan Eligibility Norms:

Both Auto Loan reviews and official websites of the banks state that following

are persons and institutions eligible for loan at the auto loan interest rates, as

per auto loan eligibility norms:

Salaried employees of PSUs, government bodies (state/central), reputed

companies, firms, educational institutions, reputed private sector

companies

Above should be permanent employees

Non-salaried class:

a) Self-employed, such as businessmen and entrepreneurs.

b) Professionals, like doctors, MBAs, engineers etc

c) Agriculturists

Retired persons: who should preferably have their pension account with

the concerned bank.

Many banks even have differential auto loan rates of interest as per the

professional profile of the prospective borrower.

Quantum of Auto Loan:

Permissible quantum of loan to purchase automobiles is determined by

the earning and the repayment capacity of the borrower, in case of

individuals.

In case of institutional borrowers, the determinant is the amount of

revenue earned in the past couple of financial years.

Thus permissible quantum of loan is generally equal to 2 or 3 times of the

net annual income of borrower.

Above amount is in the range of Rs.5lacs to over Rs.25 lacs.

Above amount is subject to a margin that falls in the range of 5% to 25%

on loan amount.

According to many Auto Loan reviews, some banks, such as HDFC Bank

do not consider any margin before disbursement of loan.


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HDFC BANK HOME LOAN INTEREST RATE:

HDFC Bank Home loan rate offered is variable and fixed.

HDFC Bank Home loan interest rate is based on base rate system. HDFC

Bank Home loan rate is based on 8.50% base rate.

HDFC Bank Home loan interest rate offer reduced interest rates during the

intervening period. HDFC Bank Home loan rate which offers this facility is by

opting for adjustable interest rates.

HDFC Bank Home loan rate keep changing periodically. One can get updated

information on HDFC Bank Home loan rate from the bank.

HDFC Bank Home loan interest rate is attractive even for NRIs. HDFC Bank

Home loan interest rate are similar for home loan as well as home

improvement loan.

HDFC BANK HOME LOAN ELIGIBILITY:

HDFC bank Home Loan Eligibility Criteria For Salaried People:

As per the HDFC bank home loan review the eligibility depends on the

persons repayment capacity. HDFC bank home loan applicant should have

salary certificate. As per the HDFC bank home loan eligibility a salaried

customer should present his 6 months bank statement.

HDFC bank Home Loan Eligibility Criteria For Self Employed:

HDFC bank home loan review shows the self employed person has to show

proof of income. HDFC bank home loan self employed applicant needs to

show audited balance sheet and PL account of 3 years. As per the HDFC

bank home loan eligibility an applicant should have 3 years of minimum work

experience.


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HDFC bank Home Loan Documents:

HDFC bank home loan review shows that one has to submit

Identity proof

Address proof

Filled application form

Two photographs

HDFC bank home loan Documents for salaried

Form 16

Bank Statement

Latest Salary slip

HDFC bank home loan Documents for self employed

IT papers

Bank Statement

Proof of Business existence

Profit and Loss Account/ Balance Sheet

Procedure and Options to Apply For the Loan:

The customer needs to submit duly filled form and attach related documents

and submit it to the bank authorities for processing. The form is available at

the branches or can be downloaded from the official website of the bank.

Maximum and Minimum Tenor of the Loan:

As per the HDFC bank home loan review one can get a maximum repayment

period of 10 years.

What would be the repayment options/facilities?

The customer can pay back his loan in equated monthly installments.


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RESRACH MEHTDOLOGY

RESEARCH DESIGN

STUDY

DATA COLLECTION OBJECTIVES OF

THE METHOD

SOURCE OF DATA

SAMPLING CONCEPTS

SAMPLE DESIGN

SCOPE OF STUDY

LIMITATIONS

RESEARCH METHODOLOGY

Survey research is the systematic gathering of information from respondents

for the purpose of understanding and/or predicting some aspects of the

behaviours of the population of interest. It is the most common method of

collecting primary data for marketing decisions. Survey can provide data on

attitudes, feelings, beliefs, past and intended behaviours, knowledge,

ownership, personal characteristics and other descriptive items.

Survey research is concerned with administration of questionnaires

(interviewing). The survey research must be concerned with sampling,

questionnaire design, questionnaire administration and data analysis. The

administration of questionnaire to an individual or group of individuals is

called an interview. A questionnaire is simply a formalized set of questions for


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eliciting information. As such, its function is measurement and it represents

the most common form of measurement in marketing research.

The report has been prepared on the basis of information collected from

different sources. In order to achieve the objective of the project proper

research method was applied. After giving through brain storming session,

objectives were selected and the set on the base of these objectives, A

questionnaire was designed major emphasis of which was gathering new

ideas or insight so as to determine and bind out solution to the problems.

RESEARCH DESIGN

This study is a mix of explorative and formal methodologies adopting

monitoring and observing to study the customer satisfaction for loan

preference at HDFC Bank to elicit responses from customers. This is a cross

sectional study.

The study also aims at findings out the customer satisfaction level for loan of

HDFC Bank. For the customer satisfaction study a questionnaire was

formulated containing 23 questions which were sent out for response mainly

through personal interviews of customers. Results of this step formed the

basis of the recommendations given to the company.

OBJECTIVES OF THE STUDY

This study aims to examine research that sought to identify whether the

customers are satisfied or not by products and services offered by bank.


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To give an insight into Field project to bridge gap between theory and

practical.

The survey aims at finding out various dimensions and factors which form

components of grievance handling of customers.

To provide suggestion based on the survey, which can be incorporated by

the organization.

To study Company image of HDFC Bank and Survey research to

measure customer satisfaction towards HDFC Bank.

To understand customer attitude for loan towards HDFC Bank.

To measure customer satisfaction of HDFC Bank.

To know the market share of HDFC bank.

DATA COLLECTION METHOD

Researcher instruments is the tool by which the researcher can do research

on specific problems or objective. The most popular researcher instrument for

collection data is Questionnaire for a particular investigation. It is simple for

a moiled set of questions presented to respondents for their answers. Due to

this flexibility, it is most common instrument used to collect the primary data.

During the pre- testing of questionnaire, I seen the reaction of respondents

and suggestions required to make change in research instrument.

The questionnaire contains three types of questions.

1. OPEN-ENDED QUESTIONS: - It is helpful in knowing what is uppermost

in the mind of the respondents. It gives complete freedom to the

respondent.

2. DICHOTOMOUS QUESTIONS:- It has only two answers in form yes or

no, true or false, use or do not use. So the respondent is offered two

or more choice.

3. MULTIPLE-CHOICE QUESTION:-In this, the respondent is offered two or

more choice.

SOURCE OF DATA


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The report has been prepared as per the information obtained from two

sources. They are:

Primary data

Secondary data1. PRIMARY DATA:

The primary data is that which details we collect first time from the market

and also used first time in the research. To collect the primary data

structured non disguise questionnaire is prepared. Primary Data was very

crucial to collect so as to know various past & present consumer views

about bikes/scooter and to calculate the market share of this brand in

regards to other brands. Fresh primary data was collected by taking direct

filling of a questionnaire from customer which involved face to face, all the

Suzuki customer who visited the dealership showroom for the service of

their bikes/scooters were questioned in order to find out the behavior of

customer.

2. SECONDARY DATA:

Secondary dataare those which has been collected by some one else andwhich already have been passed through statistical process. When the

secondary data are sufficient, the researcher has to be satisfied with the

primary sources of data. Secondary data can be used as bases for

comparison with primary data have been collected by questionnaire.

Secondary data has been taken from internet, newspaper, magazines and

companies web sites.

SAMPLING CONCEPTS

What is a sample?

A sample is a finite part of a statistical population whose properties are

studied to gain information about the whole (Webster 1985). When dealing

with the people it can be defined as a set of respondents (people) selected

from a larger population for the purpose of a survey.


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A population is a group of individuals persons, objects, or items from which

samples are taken for measurement for example a population of presidents or

professors, books or students.

What is Sampling

Sampling is an act, process or techniques of selecting a suitable sample or s

representative part of a population for the purpose of determining parameters

or characteristics of the whole population.

What is the purpose of Sampling

To draw conclusions about populations from sample, we must use inferential

statistics, which enables us to determine a populations characteristics by

directly observing only a portion ( or sample) of the population. We obtain a

sample rather than a complete enumeration ( a census) of the population for

many reasons. Obviously, it is cheaper to observe a part rather than the

whole, but we should prepare ourselves to cope with the dangers of using

samples. In this tutorial, we wil investigate various types of sampling

procedures. Some are better than others but all may yield samples that areinaccurate and unreliable. We will learn how to minimize these dangers, but

some potential error is the price we must pay for the convenience and

savings the samples provide.

There would be no need for statistical theory if a census rather than a sample

was always used to obtain information about populations. But a census may

not be practical and is almost never economical. There are six main reasons

for sampling instead of doing a census. These are:- Economy-timeliness-the

large size of many populations- inaccessibility of some of the population-

destructiveness of the observation- accuracy.

The economic advantage of using a sample in research obviously, taking a

sample requires fewer resources than census. For eg. Let us assume that

you are one of the very curious students around. You have heard so much

about the famous Cornell and now that you ate there, you want to hear form


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insiders. You want to know what all students at Cornell think about the quality

of teaching they receive, you should know what all the students are different

so they are likely to have different perceptions and you believe you must get

all these perceptions so you decide because you want an in-depth view of

every student, you will conduct personal interviews with each of them and you

want results in 20 days only, let us assume this particular time you are doing

your research Cornell has only 20,000 students and those who are helping

are so fast at interviewing art that together you can interview at least 10

students per person per day in addition to your 18 credit hrs of course work.

You will require 100 research assistants for 20 days and since you are paying

them minimum wage of $ 5.00 per hour for ten hrs ($50.00) per person per

day, you will require $10000.00 just to complete the interviews, analysis will

just be possible. You may decide to hire additional assistants to help with the

analysis at another $10000.00 and so on assuming you have that amount on

your account.

Selecting the Sample

The preceding section has covered the most common problems associatedwith the statistical studies. The desirability of a sampling procedure depends

on both its vulnerability to error and its cost. However, economy and reliability

are competing ends, because, to reduce error often requires an increased

expenditure of resources. Of the two types of statistical errors, only sampling

error can be controlled by exercising care in determining the method for

choosing the sample. The previous section has shown that sampling section

may be due to either bias or chance. The chance component ( sometimes

called random error) exists no matter how carefully the selection procedures

are implemented, and the only way to minimize chance sampling errors is to

select a sufficiency large sample (sample size is discussed towards the end

of his tutorial). Sampling bias on the other hand may be minimized by the

wise choice of a sampling procedure.

Types of Samples


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There are three primary kinds of samples: the convenience, the judgement

sample, and the random sample. They differ in the manner in which the

elementary units are chosen.

The convenient sample

The convenience sample results when the more convenient elementary units

are chosen from a population for observation.

The judgment sample

The judgment sample is obtained according to the discretion of someone who

is familiar with the relevant characteristics of the population.

The random sample

This may be the most important type of sample. A random sample allows a

known probability that each elementary unit will be chosen. For this reason, it

is sometimes referred to as a probability sample. This is the type of sampling

that is used in lotteries and raffles. For eg. If u want to select 10 players

randomly from a population of 100, you can write their names, fold them up,

mix them thoroughly then pick ten. In case, every name had any equal

chance of being picked.

Types of Random Sample

It is obtained by choosing elementary units in search a way that each unit in

the population has an equal chance of being selected. A simple random

sample is free from sampling bias. However, using a random no. table tochoose the elementary units can be cumbersome. If the sample is to be

collected by a person untrained In statistics, then instructions may be

misinterpreted and selections may be improperly. Instead of using a least of

random numbers, data collections can be simplified by selecting say every

10th or 100th unit after the first unit has been chosen randomly as discussed

below. Such a procedure is called systematic random sampling.

A Systematic Random Sample


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Selecting one unit on a random basis and choosing additional elementary

units at evenly spaced intervals until the desired no. of units is obtained

obtains a systematic random sample. For eg. There are 100 students in your

class. You want a sample of 20 from these 100 and you have their names

listed on a piece of paper may be in an alphabetical order. If you choose to

use systematic random sampling, divide 100 by 20, you will get 5. Randomly

select any no. between 1 and 5. Suppose the number you have picked is 4 ,

that will be your starting number. So student number 4 has been selected.

From there you will select every 5th name until you reach the last one, number

one hundred. You will end up with 20 selected students.

A stratified sample: It is obtained by independently selecting a separate

simple random sample from each population stratum. A population can be

divided into different groups may be based on some characteristic or variable

like income of education. Like any body with ten years of education will be in

group A, between 10 and 20 group B and between 20 and 30 group C. These

groups are referred to as strata. You can then randomly select from each

stratum a given number of units which may be based on proportion like if

group A has 100 persons while group B has 50, and C has 30 you may

decide you will take 10% of each. So you end up with 10 from group A, 5 from

group B, and 3 from group C.

A cluster sample: It is obtained by selecting clusters from the population

on basis of simple random sampling. The sample comprises a census of each

random cluster selected. For example a cluster may be some thing like a

village a school , a state. So you decide all the elementary schools in NewYork state are clusters. You want 20 schools selected. You can use simple or

systematic random sampling to select the schools, and then every school

selected becomes a cluster. If u are interested is to interview teachers on

their opinion of some new program, which has been introduced, then all the

teachers in a cluster must be interviewed. Though very economical cluster

sampling is very susceptible to sampling bias. Like for the above case, you

are likely to get similar responses from teachers in one school due to the fact

that they interact with one another.


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Survey research is one of the most important areas of measurement areas of

measurement in applied research. The broad area of survey research

encompasses any measurement procedures that involve asking questions of

respondents. A survey can be anything forms a short paper and pencil

feedback form to an expensive one-on one in depth interview.

SAMPLE DESIGN:

Sampling is a process of obtaining. The information about the entire

population by examine a part of it .The effectiveness of the research depends

on the sample size selected for the survey purpose. For the customer

satisfaction study a sample of 50 persons was chosen from the HDFC Bank.

SAMPLING PLAN:

Data collected has been analyzed and interpreted by using simple percentage

method and finally the data is presented in graphs and charts.

SAMPLING FRAME:

Customers visiting bank for getting loan and depositing their cash or

withdrawal of cash.

SAMPLE SITE:-

The survey was conducted in Jodhpur city.

SAMPLING UNIT:-

It means Who is to be surveyed. Here target population is decided and it is

who are interested to purchase Scooter and sampling frame is developed so

that every one in the target population has known chance of being sampled.

So the survey is conducted particularly in jodhpur City.

SAMPLE SIZE:-


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For the purpose of proper survey, there is need of perfect research

instruments to find out sample size for more accurate result about buying

behavior of scooter. The sample size is 100 respondents.

SAMPLING METHOD :-

A Stratified random sample is one where the population is divided in to

mutually exhaustive strata or sub-group and then a simple random is selected

within each of strata on age groups, occupation etc. It may be noted that

stratification does not means absence of randomness. I use a simple random

sampling method.

SCOPE OF STUDY

The scope of the study is limited to the Jodhpur city. This study is aimed at

providing loan facility with an insight on the customer satisfaction pattern of

HDFC Bank as well as the customers response and awareness towards the

products and services of HDFC BANK it studies about the grievances

handling procedures , customers satisfaction. I had covered 50 customers of

the organization.

The data has been analyzed and presented in a simple and precise way on

the basis of which pertinent recommendations have been made to the

company to better the services, policies and strategies of the company in

India. Companies also want the Suggestion for improvement from

users of HDFC Bank & get Feedback from customer.

Limitations of the study

The research had the city constraint , as the location was limited so the

research could not be done on a wide scope.

The research had the sample size constraint, as the organizations

were not large in size so it has a narrow scope.

The research had the time constraint, as it had to be completed in a

month so much data could not be collected and analyzed.


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Analysis and data interpretation

Customers Review

1) Do you have any vehicle ?

a) car

b) two wheelerc) others

d) none

ANALYSIS:

The above pie chart shows that 30% of the customers have cars, 40% are

having two wheeler, 10% have others (i.e. no car no two wheeler) and rest

10% have no vehicle.

30%

40%

10%

10%

percentage

car two wheeler other none


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2) Reason for taking loan from HDFC Bank?

a) Faster processing

b) Interest rate

c) Brand image of the bank

d) Margin amount

ANALYSIS:

This pie states that 20% of the customers take loan from HDFC

Bank because it have faster processing.

40% customers statement is that it provides interest rates more as

compared to other banks.

30% customers states that it have good brand image.

10% of the customers states that it have margin amount

20%

40%

30%

10%

Percentage

faster processing Interest rate Brand image of the bank Margin amount


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3) How do you rate the interest rates charged by HDFC Bank?

a) Highly Satisfactory

b) Satisfactory

c) Averagely Satisfactory

d) Dissatisfactory

e) Highly Dissatisfactory

ANALYSIS

In the above pie chart 10% of the customers are highly satisfied

with interest rate of the bank.

60% are satisfied with interest rates

20% of the customers are averagely satisfied

10% of the customers are dissatisfied

10% of the customers are Highly dissatisfied

60%

20%

10%

10%

PERCENTAGEHighly satisfactory satisfactory averagely satisfactory dissatisfactory highly dissatisfactory


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4) How do you rate the EMI of HDFC Bank?


b) Satisfactory


d) Dissatisfactory


ANALYSIS

This pie chart shows that 20% of the customers are highly satisfied

with emi rate of HDFC Bank.

40% customers are satisfied with the emi rate of HDFC Bank.

40% customers are averagely satisfied with emi rate of HDFC Bank.

20%

40%

40%

0 0 percentage

highly satisfactory satisfactory averagely satisfactory dissatifactory highly dissatifactory


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5) How do you rate the documentation procedure of HDFC Bank?


b) Satisfactory


d) Dissatisfactory


ANALYSIS

In the above pie chart 40% of the customers are highly satisfied with

the documentation procedure of HDFC Bank

30% of the customers are satisfied with the documentation procedure

of HDFC Bank

10% of the customers are averagely satisfied with the documentation

procedure of HDFC Bank

10% of the customers are dissatisfied with the documentation


10% of the customers are Highly Dissatisfied with the documentation


40%

30%

10%

10%

10%

Percentagehighly satisfactory satisfactory averagely satisfactory

dissatisfactory highly dissatisfactory


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6) How do you rate the processing fees of HDFC Bank?


b) Satisfactory


d) Dissatisfactory


ANALYSIS

30% of the customers are Highly satisfied with the processing fee of

the HDFC Bank

30% of the customers are satisfied with the processing fee of the

HDFC Bank

30% of the customers are Averagely satisfied with the processing fee

of the HDFC Bank

10% of the customers are dissatisfied with the processing fee of the

HDFC Bank

30%

30%

30%

10%

0 PercentageHighly Satisfactory B)Satisfactory C)Averagely Satisfactory

D)Dissatisfactory E)Highly Dissatisfactory


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7) How do you rate the Sanctioning Procedure of HDFC Bank?


b) Satisfactory


d) Dissatisfactory

e) Hi