Title Training And Development in Banking

Sector with Reference to HDFC Bank

Name of the students ARPIT SHUKLA

Roll No 18301B0007

Course HR

Division BMS-C HR

Guide Name Nisha Dang

Guide Signature

1. TITLE: Training And Development in Banking Sector

With Reference To HDFC Bank
Introduction:
Financial performance is the process of measuring how effectively a company utilizes its
assets from primary mode of business to raise incomes it also measures organizations whole
financial health over a particular period of time. Financial performance of the organization
deals with the financial strength and weaknesses of bank accurately establishing a relationship
between the balance sheet and income statement. This process used to clearly understand
the growth of long-term and short-term of bank. There are several ways to analyse data the
researcher used ratio analysis in this research. This analysis also helpful determines the credit
worthiness of the bank to evaluate the market position among the competitors.
Review of Literature:

Nagalekshmi V S, Vineetha S Das (2018), found that the positive impact of merger Kotak
Mahindra Bank Ltd with ING-Vysya Bank. It also found that momentous increment in various
budgetary like operating profit, net profit, earnings per share, interest earned, return on assets,
equity share capital, income on investment etc.,

K. Dinesh Kumar and G. Venugopal (2018) revealed that ICICI Bank good performance of
balance sheet ratios and Debt coverage ratios and next position of HDFC Bank. SBI andKotak
Mahindra Bank performance is good in profitability ratios.

Murad Mohammad Galif Al-Kaseasbah and Abdel KarimSalimIssaAlbkour (2018) in their

paper entitled, financial performance of Indian Banking sector: A Case Study of SBI and ICICI
Bank. To examine the financial performance of SBI and ICICI Bank. During the study, it was
found that the SBI recorded fluctuating trend on the other hand ICICI failed to manage the
increasing trend.
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Vinoth Kumar and Bhawna Malhothra (2017), attempted has been made evaluate the
performance &financial soundness of selected private sector banks in India for the period
2007- 2017 CAMEL approach has been used. This study concluded that the Axis Bank is
ranked first under the CAMEL analysis followed by ICICI Bank. Kotak Mahindra Bank occupied
the third position. The fourth position occupied by HDFC Bank and the last position is occupied
by Induslnd bank amongst all the selected banks.

Suruchi Satsangi Prem Das Saini (2017) analyzed financial performance of Kotak

Mahindra Bank merger with ING Vysya Bank. The findings of the study showed the high

growth rate which is observed in the financial performance of the Kotak Mahindra Bank after

the mergers and acquisitions.

Priyanka Jha (2017) analyzed financial performance of Public Sector Banks (Punjab

National Bank) and Private Sector Banks (ICICI) in India. The researcher concludes her

research PNB has lower operational efficiency comparatively than ICICI Bank. In case of

dividend pay- out ratio, debt-equity ratio and interest expended to interest earned, ICICI

Bank has performed sounder as compare to PNB.

Jaiswal and Jain (2016) entitled a comparative study of financial performance SBI and

ICICI Bank in India. This study examines the financial performance of Indian Banks with the

help of CAMEL Model. This study compare the financial performance of SBI and ICICI from

2010-11 to 2014-15. The authors suggested that the SBI is performing well as compare to

the ICICI. Furthermore it was found that the market position of SBI is better than ICICI in

terms to earning per share, price ratio per share and dividend payout ratio. On the other

hand ICICI Bank performing well in terms of NPA and provision for NPA in comparison of

SBI bank.

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Tirkeyi and Salem (2013) analyzed a comparative study financial statement of ICICI and

HDFC through ratio analysis examined the financial position with the use of different ratios.

It was found that financial position of ICICI is much better than HDFC.

Research Methodology:

Descriptive research is used in this project report in order to understand the evolving
competitive environment in the banking sector in India and to make a comparative study
among few banks operating in public private and foreign sector. This is the most popular type
of research technique, generally used in survey research design and most useful in describing
the characteristics of consumers behavior.

The method used were following

 Questionnaire method.

Direct Interaction with the users.

Data collection.

Mode of data collection:

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

 Secondary Data: - Secondary Data: In order to have a proper understanding of the service
quality of bank a depth study was done from the various sources such as books, a lot of data
is also collected from the official websites of the banks and the articles from various search
engines like Google, yahoo search and answers.com.

RESEARCH SAMPLE

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SAMPLING PLAN:

Since it is not possible to study whole universe, it becomes necessary to take sample from the
universe to know about its characteristics.

 Sampling Units: Customers of HDFC bank

 Sample Technique: Random Sampling.

 Research Instrument: Structured Questionnaire

 Contact Method: Personal Interview.

SAMPLE SIZE:

The work is a case of HDFC Bank, one of the largest bank of Indian banking industry together
representing over 25 per cent of the market share of Indian banking space. The survey was
conducted in the city of Mumbai with two branches of HDFC Bank, with 50 customers as
respondent.

COMPANY PROFILE :

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The Housing Development Finance Corporation (HDFC) Limited is a name that has been
associated with the Indian housing sector for the last four decades. As pioneers in housing
mortgages, it is a brand name that has been characterised by trust, solidity, both financial and
managerial and sound principles. Since the day of its incorporation in 1977, HDFC has defined
and set high standards in the housing finance sector.

HDFC Bank provides a number of products and services including wholesale banking, retail

banking, treasury, auto loans, two-wheeler loans, personal loans, loans against property,
consumer durable loan, lifestyle loan and credit cards. Along with this various digital products
are Payzapp and SmartBUY

Investment
In March 2020, HDFC (parent company of HDFC BANK) made an investment of ₹1,000 crores
in Yes bank. As per the scheme of reconstruction of Yes Bank, 75% of the total investment by
the corporation would be locked in for three years. On 14 March, Yes Bank allotted 100 crore
shares of the face value of ₹2 each for consideration of ₹10 per share (including ₹8 premium)
to the Corporation aggregating to 7.97 percent of the post issue equity share capital of Yes
bank.

HDFC’s founder, Mr. H T Parekh had a vision of a dynamic organisation, one that served the
customer first. This vision has also enabled HDFC to grow from a humble beginning to one of
the biggest players in the housing finance industry.

HDFC’s wide spread network of interconnected offices across India and outreach programs in
several towns and cities, ensures a seamless experience for home buyers and existing
customers. To cater to Non Resident Indians, HDFC has representative offices in London,
Dubai and Singapore and service associates in the Middle East.

Over the last four decades, HDFC has grown to become a multi-product financial
conglomerate, diversifying itself into banking, life insurance, general insurance, asset
management, real estate venture funding and education loans.

Values at the core

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HDFC has consistently striven for and developed an excellent reputation for transparency,
trust, integrity and an impeccable record of customer friendly services. These uncompromising
principles and core values are the unshakable elements that have provided the company with
the anchor to stay on course even during turbulent and changing times.

At HDFC, corporate governance is a voluntary, self-disciplining code, which not only includes
compliance with regulatory requirements, but also stresses on transparency and fairness as
well as responsiveness to customer needs.

Shareholders (as of 31 December

Shareholding[20]
2015)

Promoter group (HDFC) 26.14%

Foreign institutional investors (FII) 20.4%

Individual shareholders 8.5%

Bodies corporate 7.5%

Insurance companies 5.38%

Unit Trust of India 8.65%

NRI/OCB/others 0.29%

Financial institutions/banks 2.75%

ADS/GDRs 18.78%

Data Analysis:

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 a. Nature of study:
1. To assess the role of HRM in Banking Industry.

2. To analyze the Impact of Training and Development (T&D) for

Employees serving in banks.

The information about the problem is collected from the Research

Journals, Trade Magazines, Annual Reports of Banks and the Internet. For
Evaluating “The Impact of T&D in Banking Industry‟, I have focused on as
recent material as possible. In order to get access to the latest
developments in this area I have used a number of articles published in
academic journals and trade magazines. We have also used secondary
information from Internet based discussion forums.

b. Research Design :
It is always important to be critical of the information presented in sources,
especially since the material might have been gathered to address a
different problem area. Moreover, many secondary sources do not clearly
describe issues such as the purpose of a study, how the data has been
gathered, analysed and interpreted making it difficult for the researcher to
assess their usefulness. In order to address this problem I have tried to
triangulate the secondary data by using numerous independent sources.

A framework or blueprint for conducting the research project, it specifies the details of the
procedures necessary for obtaining the information needed to structure and/or solve research

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problems. A good research design lays the foundation for conducting the project. A good
research design will ensure that the research project is conducted effectively and efficiently.

Typically, a research design involves the following components, or tasks:

 Define the information needed.

 Design the research.

 Specify the measurement and scaling procedures.

 Construct and present a questionnaire or an appropriate form for data collection.

Specify the sampling process and sampling size.

 Develop a plan of data analysis

c. Method of data collection :

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

Secondary Data: - Secondary Data: In order to have a proper understanding of the service
quality of bank a depth study was done from the various sources such as books, a lot of data
is also collected from the official websites of the banks and the articles from various search
engines like Google, yahoo search and answers.com.

Sampling technique:

 Quota sampling

Quota sampling is a method for selecting survey participants. In quota sampling, a

population is first segmented into mutually exclusive sub-groups, just as in stratified
sampling. Then judgment is used to select the subjects or units from each segment
based on a specified proportion over here the sample are taken who are working or
studying in the medical field. Both the studying and working groups are targeted to
get an overall view of the training provided in the studying stage as well as the
working stage.

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 Data Collection Tool Used:

The data collection tool used for the research is “Questionnaires” to get the primary
data for the empirical research on HRM in the Banking sector concerning the State
Bank of India.

e. Rationale of study :

The objective of the study is as follows:

 To examine the essential dimensions of service quality i.e. RATER- Reliability,

assurance, tangibles, empathy and responsiveness of HDFC bank and its effect on
customer‟ s satisfaction.

 To find out the level of perception of the customers from the service quality offered
by the banks.

 To know which service quality dimension of the bank is performing well.

 To identify which dimension of service quality needs improvement so that the

quality of service of HDFC banks is enhanced

4. SCOPE OF THE STUDY :

There are many banks operating in our country. Some of they are public sector banks
some others are private sector banks where as some others are foreign banks. All
these banks are doing very good business all over the country and they have
acquired good market share in the country. They are offering good services and
products. Employee training and development in banking sector is not only an activity
that is desirable but also an activity that an organization must commit resources to if
it has to maintain a viable and a knowledgeable workforce. Training is an attempt to
improve the employee’s performance on the current job or prepare them for an
intended job. In other words training improves, changes, and molds the employee’s
knowledge, skill, behavior, aptitude and attitude towards the requirement of job and
organization. Thus training bridges the gap between the job requirements and
employee’s present specifications

5. Limitations (Problems) :

The study is only for the HDFC Bank confined to a particular location and a very
small sample of respondents. Hence the findings cannot be treated as representative
of the entire banking industry. The study can also not be generalized for public and
private sector banks of the country. Respondents may give biased answers for the
required data. Some of the respondents did not like to respond. Respondents tried to
escape some statements by simply answering “neither agree nor disagree” to most of
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 the statements. This was one of the most important limitation faced, as it was difficult
to analyse and come at a right conclusion. In our study we have included 50
customers of bank because of time limit.

6. Expected Outcome :

Based on the study conducted it can be concluded that responsiveness, assurance

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

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 References:

1.  "Balance Sheet of HDFC Bank". moneycontrol.

2.  "HDFC Bank Consolidated Profit & Loss account, HDFC Bank Financial Statement &
Accounts". Moneycontrol.com. Retrieved 24 August 2020.

3. "HDFC Bank Consolidated Balance Sheet, HDFC Bank Financial Statement &
Accounts". moneycontrol.com. Retrieved 24 August 2020.

4.  Bank, HDFC. "Annual Report". hdfcbank.com.

5. Securities, HDFC. "About Us". hdfcsec.com

6. "Stocks". Bloomberg L.P.

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