SL - No Particulars Page No

CONTENTS
Sl.No PARTICULARS PAGE NO.

1
Introduction 11
2
Industry Profile 12
3
Company Profile 16
4
HDFC and Competitors 19
5
Area of study 22
6
Problem Statement 26
7
Research Objective 28
8
Research Methodology 30
9
Research Gap 33
10
Analysis and Data Interpretation 35
11
Recommendations 55
12
Annexure 60
13
Glossary 65
14
Bibliography 67
TOTAL QUALITY MANAGEMENT
EXECUTIVE SUMMARY
The most important objective of this study is to reduce the turnaround

time taken for a simple account opening. The tools used to determine
the main reasons for such delays are identified in the Pareto Charts,
Service Switching Diagram and surveys through questionnaires.
The major findings of this research highlight customer expectation

from the banks services, actual and expected turnaround time for
account opening and how they rate their bank in terms of service
provided. It was however found that change in RBI guidelines was
the main cause of such delays with other minor causes.
To eliminate the reasons for delays, separate instruction forms are

recommended titled “Help us to serve You better” that brings about
clarity while filling a form. Also the application forms can be
simplified to make it easy for a lay man to fill in. The following pages
give a detailed study on “Account Opening Delays” or AOD with
suitable recommendations.
2 SIKKIM MANIPAL UNIVERSITY

CHAPTER 1: INTRODUCTION

INTRODUCTION
Banking sector faces lot of challenges. It varies from improving profitability,
reinforcing technology, risk management, customer orientation to meeting international
standards. Each challenge faces a set of steps and procedures. Lot of care needs to be taken
while monitoring them. However, if at the initial steps, the performance deviates from the
expected standard, the entire process can go haywire.
HDFC wants to implement the concept the Total Quality Management (TQM) in the
process of account openings. A process is defines as a systematic series of actions directed to
the achievement of a goal. The process therefore has to be:
♦ Goal oriented
♦ Systematic
♦ Capable
♦ Legitimate
TQM also involves Services Process Design and is different from manufacturing
process design. They are-
♦ Output of service processes are not well defined as manufactured products.
♦ Most service processes involve greater interaction with customer.
♦ Customers cannot define their needs for services until after they have some reference
or comparison.
In the following pages, we will see how a primary function of the bank like account
opening, even though perceived simple, undergoes certain procedures. If this procedure is
not carried out effectively initially, it results in accumulation of delays and brings down the
efficiency of the bank and finally fails to meet the customer's expectation.
In the pages to come, Customer Relationship Management is leveraged to Account
Opening Delays at HDFC Bank to gain an insight into the banks problem. This detailed
report relates the issue of account opening delays to the customer.s perception of the bank.

INDUSTRY PROFILE

The Indian Banking Industry, which is governed by the Banking Regulation Act
of India, 1949 can be broadly classified into two major categories, non-scheduled banks and
scheduled banks. Scheduled banks comprise commercial banks and the co-operative banks.
In terms of ownership, commercial banks can be further grouped into nationalized banks, the
State Bank of India and its group banks, regional rural banks and private sector banks (the
old/ new domestic and foreign). These banks have over 67,000 branches spread across the
country.
The first phase of financial reforms resulted in the nationalization of 14 major banks
in 1969 and resulted in a shift from Class banking to Mass banking. This in turn resulted in a
significant growth in the geographical coverage of banks. Every bank had to earmark a
minimum percentage of their loan portfolio to sectors identified as .priority sectors..
Commercial banks are the oldest and fastest growing intermediaries in India. They
are also the most important depositories of public savings and most important disbursers of
finance. For a financial system to mobilize and allocate savings of the country successfully
and positively and productively
there must be a class of financial institutions. The structure and working of the banking
system are integral to a country’s financial stability and economic growth.

The following chart gives the structure of the Indian Banking:
Industry-
The factors that influence the growth of banks are the following-
1. Increase in national income.
2. Increase in banking habit.
3. Expansion in banking facilities.
4. Inflows of deposits from Non Resident Indians.
Even though Public Sector Banking accounts for 78% of total banking industry, use
traditional ways of banking, Private sector banks have pioneered internet banking , phone
banking, ATM.s and so on..
The banking industry is currently dominated by the following five top players-
1. HDFC Bank . headed by Aditya Puri

2. ICICI Bank . headed by K.V.Kamath (MD & CEO)

3. State Bank of India . headed by A.K.Purwar (Chairman)

4. Citibank- headed by Walter Wriston (CEO)
5. Canara Bank- headed by Mr. M B N Rao (CMD)
The following pages will give a detailed insight in to HDFC Bank, its main competitors and
what problems the bank is facing with respect to account opening delays.

CHAPTER 2: PROFILE 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 began operations in 1995 with a simple
mission: to be a "World-class Indian Bank".
The Business Today-KPMG Survey published in the leading Indian

business magazine Business Today has named HDFC Bank "Best
Bank in India" for the third consecutive year in 2005.
The Asset magazine named HDFC Bank "Best Cash Management Bank" and "Best Trade
Finance Bank" in India, in 2006.
HDFC Bank named the "Most Customer Responsive Company - Banking and Financial
Services in The Economic Times – Avaya Global Connect Customer Responsiveness
Awards 2005"
HDFC Bank has been named Best Domestic Bank in India in The Asset Triple A Country
Awards 2005.
It has also received a CII-EXIM Bank Commendation Cert. for commitment to TQM- 2000.
Currently they have a net profit for the year quarter ended 31st March 2006 of Rs.870.8 Cr.

Background
HDFC was incorporated in 1977 with the primary objective of meeting a social need. That of
promoting home ownership by providing long-term finance to households for their housing
needs.
HDFC was promoted with an initial share capital of Rs. 100 million.
Business Objectives
The primary objective of HDFC is to enhance residential housing stock in the country
through the provision of housing finance in a systematic and professional manner, and to
promote home ownership.
Another objective is to increase the flow of resources to the housing sector by integrating the
housing finance sector with the overall domestic financial markets.
Organisational Goals
HDFC’s main goals are to a) develop close relationships with individual households, b)
maintain its position as the premier housing finance institution in the country, c) maintain its
position as the premier housing finance institution in the country d) provide consistently high
returns to shareholders, and e) to grow through diversification by leveraging off the existing
client base.
VISION STATEMENT-
To build a world class Indian bank.
MISSION STATEMENT -
Use enabling technologies to provide value added products and services to customers at
value for money price.
SUBSIDIARIES AND ASSOCIATE COMPANIES
♦ HDFC Bank
♦ HDFC Mutual Fund
♦ HDFC Standard Life Insurance Company

♦ HDFC Realty
♦ HDFC Chubb General Insurance Company Ltd.
♦ Credit Information Bureau (India) Limited
♦ Other Companies Co-Promoted by HDFC

HDFC AND ITS COMPETITORS

The immediate competitor of HDFC Bank is ICICI Bank. ICICI Bank is India's
second-largest bank with total assets of about Rs.1,676.59 billion(US$ 38.5 billion) at March
31, 2005 and profit after tax of Rs. 20.05 billion(US$ 461 million) for the year ended March
31, 2005 (Rs. 16.37 billion(US$ 376 million) in fiscal 2004). ICICI Bank has a network of
about 573 branches and extension counters and over 2,000 ATMs. ICICI Bank offers a wide
range of banking products and financial services to corporate and retail customers through a
variety of delivery channels and through its specialized subsidiaries and affiliates in the areas
of investment banking, life and non-life insurance, venture capital and asset management.
ICICI Bank set up its international banking group in fiscal 2002 to cater to the cross
border needs of clients and leverage on its domestic banking strengths to offer products
internationally. ICICI Bank currently has subsidiaries in the United Kingdom, Canada and
Russia, branches in Singapore and Bahrain and representative offices in the United States,
China, United Arab Emirates, Bangladesh and South Africa.
ICICI Bank's equity shares are listed in India on the Bombay Stock Exchange and the
National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are
listed on the New York Stock Exchange (NYSE)
The next competitor bank is State Bank Of India or SBI.SBI is the largest bank in
India with deposits of Rs 3,67,000 crore as on March 31, 2005. It dominates the Indian
banking sector with a market share of around 20% in terms of total banking sector deposits.
The increasing focus on upgrading the technology back-bone of the bank will enable
it to leverage its reach better, improve service levels, provide new delivery platforms, and
improve operating efficiency to counter the threat of competition effectively.
Once the core banking solution (CBS) is fully implemented, it will cover over 10,000
branches and ATMs of the State Bank group, and emerge as the strongest technology
enabled distribution network in India.

The increasing integration of SBI with its associate banks (associates) and
subsidiaries will further strengthen its dominant position in the banking sector and position it
as the country’s largest universal bank.
Both these banks apply TQM to the services they provide. Also there are independent audits,
such as Customer Operations Performance Center (COPC) and the eServices Capability
Model (eSCM). External certifications have two basic advantages.
First, because they are objective evaluations by credible, independent third parties that
measure on specific operational parameters, the certification process is quite rigorous and
adept at identifying problem areas. Second, they establish credibility with clients, as the
auditing bodies are neutral and not connected with the vendor in any way.

CHAPTER 3:CRITICAL ISSUE INVOLVED IN THE STUDY
A/C Opening delays at various branches of the bank (South region)

One of the important functions of the Bank is to accept deposits from the public for
the purpose of lending. In fact, depositors are the major stakeholders of the Banking System.
The depositors and their interests form the key area of the regulatory framework for banking
in India and this has been enshrined in the Banking Regulation Act, 1949.
The Reserve Bank of India is empowered to issue directives / advices on interest

rates on deposits and other aspects regarding conduct of deposit accounts from time to time.
With liberalization in the financial system and deregulation of interest rates, banks are now
free to formulate deposit products within the broad guidelines issued by the RBI.
This policy document on deposits outlines the guiding principles in respect of
formulation of various deposit products offered by the Bank and terms and conditions
governing the conduct of the account.
The document recognizes the rights of depositors and aims at dissemination of
information with regard to various aspects of acceptance of deposits from the members of the
public, conduct and operations of various deposits accounts, payment of interest on various
deposit accounts, closure of deposit accounts, method of disposal of deposits of deceased
depositors, etc., for the benefit of customers. It is expected that this document will impart
greater transparency in dealing with the individual customers and create awareness among
customers of their rights. The ultimate
objective is that the customer will get services they are rightfully entitled to receive without
demand.
While adopting this policy, the bank reiterates its commitments to individual
customers outlined in Bankers' Fair Practice Code of Indian Banks' Association. This
document is a broad framework under which the rights of common depositors are
recognized. Detailed operational instructions on various deposit schemes and related services
will be issued from time to time.
As we all know, the primary function of a bank is to accept funds from public and
henceforth, an account needs to be created. An account opening for a customer is easy as it
involves just filling in a form and submitting it with proper id proofs. However, for a bank
the processing of the application form involves a set of procedures with costs incurred at
every stage.

The RBI prescribes certain guidelines, which the bank has to necessarily follow while
opening an account.
The following flowchart gives the various procedures involved in opening an account with
the HDFC Bank.


At the presale stage, the customer has a choice of getting an Insta Account for an
immediate account number or can fill in the form for a normal one.
Once the form is filled in by the customer, it is verified by the PB (Personal Banker)
and is sent to Chennai for verification. The PB requires all documents relating to ID proof,
photographs and address proof. Once these are satisfactory, the funds to open the account are
deposited in a Dummy account and the form is sent to Chennai for further verification.
In the “Fulfill” step, DVU is Data Verification Unit that is located in Chennai for
south region (for north and west being Mumbai). Here, it is seen if the application and
documents comply with the rules of the RBI and depending on the outcome either the
account is opened or the form is sent bank to the branch (can even be put on hold) for
additional documents to be sent in.
The main branches wherein such issues reached an alarming rate were the following-
♦ Sarjapur
♦ Jaynagar
♦ Indiranagar
♦ M G Road
♦
The following pages will contain a detailed study on the branches and solutions will be
recommended.

CHAPTER 4 : PROBLEM STATEMENT

HDFC Bank has 379 branches and 900 ATMs in 183 cities. It has grown at a
blistering pace since 1995, with its net profit growing at an annualised average rate of 104
per cent. Its retail loans have risen from Rs 845 crore in 2001 to Rs 7,325 crore in 2004. Its
size is now comparable to some of the smaller public sector banks which dominate India's
landscape.
The bank opens, on an average atleast 25-30 accounts per week for its customers
compared to its competitors who have an average of just 15-25 (for ICICI) and 10-12 (for
SBI). However, the recent changes in the RBI rules with respect to account opening have
reduced the efficiency of the bank thereby causing delays.
Account opening involves various steps and hence processing expenses and delays
occur if the documents do not suffice. The RBI does not specify the documents to be
obtained. For ensuring this, banks have followed know your customer norms (KYC). It is for
the individual banks to determine list of acceptable documents. RBI has lately mandated that
certain information pertaining to the applicant (individual/corporate) need to necessarily be
captured at the time of account opening. This is called the AML/KYC form (AML-Anti
Money Laundering i.e. source or destination of money is not revealed to the bank).
The list of documents acceptable is dependent on the type of accounts being opened.
The bank has a comprehensive list of those documents which are acceptable for various
account types on the basis of type of entity, utility of accounts and facilities provided. These
recent changes brought in by the RBI with respect to account opening have brought in a
problem of delay in account opening.

CHAPTER 5 : RESEARCH OBJECTIVE

The project is undertaken with the following objective –
i. Identifying the branches that are a victim to the RBI’s new rules.
ii. Identifying the main reasons for the delays in account opening.
iii. Application of various statistical models to minimize the delays.
iv. Customer expectations about their bank through a survey with the help of a
questionnaire.

CHAPTER 6: RESEARCH METHODOLOGY

The bank has divided the south region as S1 and S2 with branches under it. Some of
these branches have a really high rate of delays in account opening.
The methodology used to conduct the research for the purpose of this dissertation
includes:
♦ Sample survey of bank customers to gauge an idea on Customer Satisfaction
♦ Explore reasons for delays in account opening.
♦ Study the database of the bank to get an insight into the working of the bank and its
policies.
To make the above observations, the following tools of Total Quality Management were
used-
Pareto analysis- is a bar chart that illustrates the frequency recurrence of a set of items. It is
a technique based on Pareto principle of .the vital few and trivial many. It is also called the
80-20 rule.
Root-Cause analysis- It is a diagram that gives the relationship between quality

characteristic and its factors. It is a pictorial representation and is also called Fish Bone
Diagram or Ishikawa diagram.
Quality Function Deployment- It refers to that concept that integrates a firms TQM efforts
by unifying the four functional strategies-
1. Marketing
2. Sales
3. Product design
4. Operations management

The main quality characteristic is chosen and the major causes for the same are listed. Each
cause is analysed thoroughly to find the most influential cause resulting in poor quality of
service delivery. This will vary from place to place and environment to environment.
Sample Survey- A questionnaire titled “Total Quality Management in HDFC”
The questionnaire aims at getting a perception about the services provided by the bank to the
customers and leverage it to the efficiency of in account opening. The respondents included
customers from HDFC, ICICI, SBI, Citibank, Canara bank. A sample questionnaire is
enclosed at the end in Annexure.
The confidence level taken in this study is 95% i.e. z is greater than 1.96 or less than -1.96,
and the difference is statistically significant. That is, it is so unlikely that the sample came
from this population (5% chance or less) that we reject the null hypothesis and say that the
sample is different from the population.
All the data was fed into an excel sheet and necessary calculations for Z were done. It
included average, median, mode and standard deviation. The in built statistical functions for
a Z test was used to determine the values and conclusions were drawn based on the same.

RESEARCH GAP

The research includes analyzing the process of account opening. This procedure
itself is divided into separate functions and is distribute in two places (Bangalore and
Chennai). Hence, the study is focused mainly on problems at Bangalore and the problems
faced in Chennai remain undiscovered.
Also, the survey was used to gauge customers’ perceptions about their banks, the size
of the sample is not very large and hence any predictions made on the population, may at
times be inaccurate.
However, despite the gaps, an effort has been made to throw light on the process of
account opening and the defects related to it. This had been leveraged to the concept of
Customer Relationship Management.

CHAPTER 7: ANALYSIS AND DATA INTERPRETATION

Survey of the Questionnaire:
The survey done with the help of questionnaire was aimed at knowing the customers
perception about their bank. The questionnaire was filled in by customers of the following
banks to facilitate a comparative study of their efficiencies and leveraging it to account
opening.
The banks were-

♦ HDFC Bank
♦ ICICI Bank
♦ SBI
♦ Citibank
♦ Canara Bank

TABLE 1
1. Type of accounts held:
• Savings Bank
• Current account
• Term Deposit
• Recurring Deposit
Sl.No Types of accounts No of Percentage

Respondents
1 Savings Bank 30 65%
2 Current account 8 17%
3 Term Deposit 5 14%
4 Recurring Deposit 2 4%
Total 45 100%
Interpretation:
From the above table it can be seen that 65% of the respondents are savings bank account
holders and 17% of the respondents are holding current account while 14% of the
respondents are holding term deposit and remaining 4% of the respondents are recurring
deposit holders.

Table 2
Time taken by your bank to open your account:
The table will correlate the time taken by the three banks (HDFC, ICICI and SBI) to open an
account. This will show the efficiency of the banks and will indicate which bank has a
competitive advantage.
Interpretation
From the above tabulated data, it is seen that most of the banks open accounts of their
customers in more than two days. HDFC Bank has the highest reading of “within one day”
category. Inspite of this, it faces problems in certain branches that have been identified
before. However it faces close competition with ICICI and SBI bank in the “within one
day” category. From the z test done for the sample, all the values lie between +1.96 to -1.96,

and hence it the null hypothesis can be accepted and it can be said that the sample does not
differ from the population.
Table 3 : Perceived levels of services by customers at their banks (out of 9).
Graph 2
Source-Field Investigation
Interpretation
We see that HDFC is perceived to be the safest bank while Citibank is perceived to be the
most prompt bank. This is because Citibank encourages net banking and imposes a fine on
the customer if he enters the branch for a simple query. ICICI though is a close competitor of
HDFC. However, it was found in the survey that the traits of .courteous employees. and
.caring for customers’ Were deteriorating. SBI is not perceived to be visually appealing. Old

customers are used to the banks ways and are satisfied. However, the new customers expect
more from the bank.
Overall rating of the banks
Source-Field Investigation
Interpretation
According to a recent survey, it was revealed that the top most respected bank in India today
is SBI after which ranks HDFC, Citibank, ICICI Bank and finally Punjab National Bank.
However, when it comes to customer satisfaction in this survey, Citibank customers were the
most satisfied as Net banking saved them lot of time and money. Hence it has the highest
rating.

Table 4 : Appearance of the HDFC bank’s physical facilities, Fixtures,
personnel and communications material.
No of
Particulars Respondents Percentage
Poor. 2 4%
Average. 6 13%
Good. 20 45%
Very Good. 17 38%
Total 45 100%
Interpretation
From the above table it can be seen that 4% of the respondents has rated poor and 6% of the
respondents has rated as average while 45% of the respondents has rated Good and
remaining 38% of the respondents has rated as Very Good.

Table 5 : The bank’s ability to perform the promised services dependably and
accurately
No of
Particulars Respondents percentage
Poor. 2 4%
Average. 4 9%
Good. 20 45%
Very Good. 19 42%
Total 45 100%
Inference:
Table: 6

The bank’s willingness to help the customers and provide prompt services
No of
Respondents Percentage
Poor. 0 0%
Average. 2 4%
Good. 10 22%
Very Good. 33 74%
TOTAL 45 100%
WILLINGNESS TO HELP CUSTOMERS
Interpretation:

Table 7: The knowledge and courtesy of the bank’s employees and their ability to
convey trust and confidence.
Particulars No of Respondents Percentage

Poor. 0 0%
Average. 0 0%
Good. 15 33%
Very Good. 30 67%
TOTAL 45 100%
Ability to convey trust and confidence by the bank employees
Interpretation:
From the above table it can be seen that no customer has rated as poor and average while
33% of the respondents has rated Good and remaining 67% of the respondents has rated as
Very Good.
Table 8: The caring, individualized attention the bank provides

Particulars No of Respondents Percentage

Poor. 1 2%
Average. 1 2%
Good. 14 32%
very good 29 64%
TOTAL 45 100%
Interpretation:
Table 9:

Rating of the overall quality of services provided by the bank?

(Tick one number below the bank)
RATING HDFC ICICI SBI CITIBANK CANARA BANK
1
2 
3 
4
5 
6 
7
8 
9
Interpretation:
From the total survey , it can be seen that HDFC has been rated as the top in providing
overall quality of services to their customers as compared to other banks like ICICI
which is rated as 3 , SBI which is rated as 6, CITIBANK which is rated as 2 and
CANARA BANK rated as 5.

CHAPTER 8:

RECOMMENDATIONS & SUGGESSTIONS
The main causes of delays are identified now. If the very initial step of .filling in. the
application form is taken care of, the rate of delays will reduce. It resembles the proverb “A
battle well begun is half won”.
Hence the following suggestions are recommended-
♦ Separate time slots can be allotted initially for accepting application forms, or even a
separate counter can be maintained at the beginning to facilitate individual attention.
This assistance provided to the customer will make sure that the form will be defect
free.
♦ All details regarding the id proof can be explained to him. It was found in the survey
that many of them forget how they have signed in the application form. Hence, a
counterfoil can be given to the customer that contains his signature that he can refer
to in future if he forgets the way he has signed. Also, the bank can explain their
inability to the customer to process the application form if his signature differs from
the documents presented for id proof. In such cases, a fresh form is filled that irks the
customer too.
♦ If the bank is not able to do the above, then when the application form is handed over
to the customer, a separate instruction titled .Help us serve You better. can be given
that contains all the requirements of the bank with respect to types of id proofs
needed and other requirements based on customer type (i.e. individual, joint,
company accounts etc.)
♦ The Personal Banker needs to verify the documents before it is sent to the head office
at Chennai. If he is doubtful about the form being accepted, (yet it is sent Chennai) he
may ask the customer to keep additional documents ready as id proof rather than wait
till the form is sent back to the respective branch.

♦ When the customer is asked to fill in the application form, it has to be found out if he
is an existing or a new customer. Existing customers’ details are already keyed into
the system and hence the bank can take advantage of this and reduce the time taken
to process the account opening. Separate application forms can be designed for
existing customers and the processing of these can be diverted to a separate
department so that the Data Verification Unit and Imaging departments can
concentrate on the forms of new customers. This will also reduce the work load of the
departments and increase efficiency and accuracy.
♦ In the survey, customers revealed that they found the filling in of application forms a
labourious job. Also, they were apprehensive about filling in the form by themselves
and preferred to fill in, in the presence of a bank official to avoid mistakes. Hence the
bank can encourage net banking or simplify the application form to reduce the
customers. Apprehensions.
♦ The bank needs to courier the application forms to Chennai. Inspite, it can fax it or
scan it to the head office. If this does not work out, the bank can think of setting up a
separate branch in Bangalore itself so that the turnaround time (presently 4 working
days) can be reduced. Aspects like time and cost can be reduced and thereby the
bank.s efficiency can be leveraged.
♦ It was found in the survey that Citibank had a very innovative idea to receive
feedback from its customers. They send out a periodic questionnaire to its customers
and every filled and submitted form would receive an incentive in the form of small
gift like pens, diaries, desk calendars etc.. HDFC bank can apply the same procedure
to reduce their costs and at the same time get back valuable feedback. Also, it can
discourage customers to come to branch for any queries as it will cost the bank to
attend a customer just for a simple issue. Customer friendly websites can be designed
to facilitate easy net banking to allow the bank to concentrate on other important
issues. If this is not feasible for all customers, this can be encouraged among senior
citizens and working officials.

It can be said that HDFC Bank is one of the most popular banks when it comes to customer
satisfaction despite its conventional method of banking. It lives up to its punch line-
Unmatched features “World class services” It is India.s leading private sector bank. (An
established brand in itself.)
A customer enters into a bank with a decision to open an account only if he feels it is safe to
transact with it and if he feels that the bank will live up to his expectations. Hence, account
opening procedures can be simplified by the above suggestions and points to ponder on are
highlighted in the Root
Cause diagram and the Service Switching Diagram.
Macro-level recommendations:
♦ Provide the bank employees first-hand best corporate practices
♦ Expose the bank employees to the environment in which the bank customers use the
bank's services
♦ Constantly retrain the bank staff in the theory and practice of TQM
♦ Showcase the customer quality
♦ Establish a continuous improvement culture in the Bank
♦ Initiate vigorously continuous process improvement in the Bank.
The process improvement can be brought about by;

(a) Breakthrough thinking;
(b) process stabilization; and
(c) Incremental improvement.

The following tools for continuous improvement in the quality of service in the Bank are
quite helpful:
1. Brainstorming
2. Process mapping
3. Cause and effect diagrams
4. Asking why (five times)
5. Check sheets
6. Pareto analysis
7. Matrix analysis
8. Consensus building
9. Paired comparisons/emphasis on curve ranking
10. Force field analysis
11. Team purpose analysis
12. Cost/benefit analysis
13. Priorities grid
14. Time-cost analysis

ANNEXURE
A sample questionnaire is given below that was used in the survey.
I am a student of Sikkim Manipal University, pursuing my MBA program. As a part of the

MBA curriculum, I have taken up a research project on “Total Quality Management in
HDFC”. In this connection I need some information from you. The questionnaire is,
herewith, enclosed. Kindly give your responses to the questions. I sincerely assure you that
your responses will be kept strictly confidential and shall only be used for academic purpose.
I shall greatly appreciate your cooperation.
1. Name:
2. Gender:
3. Age:
4. Occupation:
5. Name of your Banks you hold your accounts with:
a.
b.
c.
6. Type of accounts held:
• Savings Bank
• Current account
• Term Deposit
• Recurring Deposit
7. Time taken by your bank to open your account:
CITI BANK CANARA

TIME HDFC ICICI SBI
BANK
INSTANTLY
WITHIN ONE HOUR
WITHIN ONE DAY
MORE THAN TWO DAYS

8. Services perceived from yours banks, rate them from 1 to 9:
STATEMENTS HDFC ICICI SBI CITIBANK CANARA BANK

PROMPT SERVICE
COURTEOUS EMPLOYEES
CARING EMPLOYEES
SERVICES AT PROMISED
TIME
VISUALLY APPEALING
WILLINGNESS TO HELP
INSTILLS CONFIDENCE
FEEL SAFE WHILE
TRANSACTING
9. How long have you been a customer of HDFC?
• Less than a year

• One to two years
• Two to five years
• More than five years
10. The appearance of the bank’s physical facilities, Fixtures, personnel and communications
material.
a. Poor.
b. Average.
c. Good.
d. Very Good.
11. The bank’s ability to perform the promised services dependably and accurately
a. Poor.
b. Average.
c. Good.
d. Very Good.
12. The bank’s willingness to help the customers and provide prompt services
a. Poor.
b. Average.
c. Good.
d. Very Good.

13. The knowledge and courtesy of the bank’s employees and their ability to convey thrust
and confidence.
a. Poor.
b. Average.
c. Good.
d. Very Good.
14. The caring, individualized attention the bank provides to you .

a. Poor.
b. Average.
c. Good.
d. Very Good.
15. How would you rate the overall quality of services provided by the bank?
(Tick one number below the bank)
RATING HDFC ICICI SBI CITIBANK CANARA BANK
1
2
3
4
5
6
7
8
9
THANK YOU FOR SPARING YOUR VALUABLE TIME IN GIVING YOUR

RESPONSES
GANESH .H

GLOSSARY

The study includes few banking terminologies. Their meanings are given below-
No Posting- Funds that need to be parked in dummy account are not yet done i.e. not
posted.
AML- Anti Money Laundering. A set of procedures, laws or regulations designed to
stop the practice of generating income through illegal actions. In most cases money
launderers hide their actions through a series of steps that make it look like money coming
from illegal or unethical sources was earned legitimately.
Pan form 60- Permanent Account Number is a number by which the Assessing Officer
can identify any person. Presently the Income Tax Department is allotting PAN under the
New Series to all assesses which consists of ten alphanumeric characters and is issued in the
form of a laminated card. The General Index Register Number is a number given an
Assessing Officer to the assesses in the General Index Register maintained by him which
also contains the designation and the particulars of the Assessing Officer.

BIBLIOGRAPHY
This research project is well supported by facts from the following journals and websites-

Books:
• "Total Quality Management" by Mr. Sridhar Bhatt (7th Edition)
• "Banks and Financial Institutions" by Mr. L M Bhole , Tata McGraw -Hill Publications,
4th Edition
• "Total Quality Management" by Oakland John S, Heinemann publications, 1980
• "How to Lead Your Business Beyond TQM" by Michel E Joyce, Pitman Publications,
1995
• "Quality Improvement through Standards" by Dale Barrie G and Oakland John S, Stanley
Thornes Publishers Ltd., London 2000
• "What is Total Quality Control" by Ishikawa Kaoru (Translated by David J Luj), Prentice
Hall Publications NJ, 2004
• "Quality, Productivity and Competitive Position" by Deming Walter F, MIT Cambridge,
Mass Publications, 20
Business Magazines:
• Business World
• Business Standard
• Economic Times
• Financial Express
• Business India
• Fortune
Websites Used:
www.google.com
www.hdfcbank.com
www.businessweek.com

SL - No Particulars Page No

Uploaded by

Copyright:

Available Formats

SL - No Particulars Page No

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

SL - No Particulars Page No

Uploaded by

Copyright:

Available Formats

CONTENTS

Sl.No PARTICULARS PAGE NO.

The most important objective of this study is to reduce the turnaround

The major findings of this research highlight customer expectation

To eliminate the reasons for delays, separate instruction forms are

2 SIKKIM MANIPAL UNIVERSITY

3 SIKKIM MANIPAL UNIVERSITY

4 SIKKIM MANIPAL UNIVERSITY

5 SIKKIM MANIPAL UNIVERSITY

6 SIKKIM MANIPAL UNIVERSITY

The following chart gives the structure of the Indian Banking:

1. HDFC Bank . headed by Aditya Puri

7 SIKKIM MANIPAL UNIVERSITY

3. State Bank of India . headed by A.K.Purwar (Chairman)

8 SIKKIM MANIPAL UNIVERSITY

CHAPTER 2: PROFILE OF HDFC BANK

9 SIKKIM MANIPAL UNIVERSITY

The Business Today-KPMG Survey published in the leading Indian

10 SIKKIM MANIPAL UNIVERSITY

11 SIKKIM MANIPAL UNIVERSITY

12 SIKKIM MANIPAL UNIVERSITY

HDFC AND ITS COMPETITORS

13 SIKKIM MANIPAL UNIVERSITY

14 SIKKIM MANIPAL UNIVERSITY

15 SIKKIM MANIPAL UNIVERSITY

CHAPTER 3:CRITICAL ISSUE INVOLVED IN THE STUDY

A/C Opening delays at various branches of the bank (South region)

16 SIKKIM MANIPAL UNIVERSITY

The Reserve Bank of India is empowered to issue directives / advices on interest

17 SIKKIM MANIPAL UNIVERSITY

18 SIKKIM MANIPAL UNIVERSITY

19 SIKKIM MANIPAL UNIVERSITY

20 SIKKIM MANIPAL UNIVERSITY

CHAPTER 4 : PROBLEM STATEMENT

21 SIKKIM MANIPAL UNIVERSITY

22 SIKKIM MANIPAL UNIVERSITY

CHAPTER 5 : RESEARCH OBJECTIVE

23 SIKKIM MANIPAL UNIVERSITY

The project is undertaken with the following objective –

iii. Application of various statistical models to minimize the delays.

24 SIKKIM MANIPAL UNIVERSITY

CHAPTER 6: RESEARCH METHODOLOGY

25 SIKKIM MANIPAL UNIVERSITY

Root-Cause analysis- It is a diagram that gives the relationship between quality

26 SIKKIM MANIPAL UNIVERSITY

Sample Survey- A questionnaire titled “Total Quality Management in HDFC”

27 SIKKIM MANIPAL UNIVERSITY

28 SIKKIM MANIPAL UNIVERSITY

29 SIKKIM MANIPAL UNIVERSITY

CHAPTER 7: ANALYSIS AND DATA INTERPRETATION

30 SIKKIM MANIPAL UNIVERSITY

Survey of the Questionnaire:

The banks were-

31 SIKKIM MANIPAL UNIVERSITY

1. Type of accounts held:

Sl.No Types of accounts No of Percentage

32 SIKKIM MANIPAL UNIVERSITY

Time taken by your bank to open your account: