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Transcript of FINAL_PROJECT report on HSBC
A Study on Customer Satisfaction Towards HSBC Bank
PART-A
1. INDUSTRY PROFILE
INTRODUCTION
The banking section will navigate through all the aspects of the Banking System in India.
It will discuss upon the matters with the birth of the banking concept in the country to new
players adding their names in the industry in coming few years.
The banker of all banks, Reserve Bank of India (RBI), the Indian Banks Association (IBA)
and top 20 banks like IDBI, HSBC, ICICI, ABN AMRO, etc. has been well defined under
three separate heads with one page dedicated to each bank.
However, in the introduction part of the entire banking cosmos, the past has been well
explained under three different heads namely:
History of Banking in India
Nationalization of Banks in India
Scheduled Commercial Banks in India
The first deals with the history part since the dawn of banking system in India.
Government took major step in the 1969 to put the banking sector into systems and it
nationalized 14 private banks in the mentioned year. This has been elaborated in
Nationalization Banks in India. The last but not the least explains about the scheduled and
unscheduled banks in India. Section 42 (6) (a) of RBI Act 1934 lays down the condition of
scheduled commercial banks. The descriptions along with a list of scheduled commercial
banks are given on this page.
HISTORY OF BANKING IN INDIA
Without a sound and effective banking system in India it cannot have a healthy economy.
The banking system of India should not only be hassle free but it should be able to meet
new challenges posed by the technology and any other external and internal factors.
For the past three decades India's banking system has several outstanding achievements to
its credit. The most striking is its extensive reach. It is no longer confined to only
metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even
to the remote corners of the country. This is one of the main reasons of India's growth
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process. The government's regular policy for Indian bank since 1969 has paid rich
dividends with the nationalization of 14 major private banks of India.
Not long ago, an account holder had to wait for hours at the bank counters for getting a
draft or for withdrawing his own money. Today, he has a choice. Gone are days when the
most efficient bank transferred money from one branch to other in two days. Now it is
simple as instant messaging or dial a pizza. Money have become the order of the day.
The first bank in India, though conservative, was established in 1786. From 1786 till
today, the journey of Indian Banking System can be segregated into three distinct phases.
They are as mentioned below:
Early phase from 1786 to 1969 of Indian Banks
Nationalization of Indian Banks and up to 1991 prior to Indian banking sector
Reforms.
New phase of Indian Banking System with the advent of Indian Financial &
Banking Sector Reforms after 1991.
To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and
Phase III.
Phase I
The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and
Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of
Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency
Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was
established which started as private shareholders banks, mostly Europeans shareholders.
In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab
National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and
1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank,
and Bank of Mysore were set up. Reserve Bank of India came in 1935.
During the first phase the growth was very slow and banks also experienced periodic
failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To
streamline the functioning and activities of commercial banks, the Government of India
came up with The Banking Companies Act, 1949 which was later changed to Banking
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Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of
India was vested with extensive powers for the supervision of banking in India as the
Central Banking Authority.
During those day’s public has lesser confidence in the banks. As an aftermath deposit
mobilization was slow. Abreast of it the savings bank facility provided by the Postal
department was comparatively safer. Moreover, funds were largely given to traders.
Phase II
Government took major steps in this Indian Banking Sector Reform after independence. In
1955, it nationalized Imperial Bank of India with extensive banking facilities on a large
scale especially in rural and semi-urban areas. It formed State Bank of India to act as the
principal agent of RBI and to handle banking transactions of the Union and State
Governments all over the country.
Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19th
July, 1969, major process of nationalization was carried out. It was the effort of the then
Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country
was nationalized.
Second phase of nationalization Indian Banking Sector Reform was carried out in 1980
with seven more banks. This step brought 80% of the banking segment in India under
Government ownership.
The following are the steps taken by the Government of India to Regulate Banking
Institutions in the Country:
1949: Enactment of Banking Regulation Act.
1955: Nationalization of State Bank of India.
1959: Nationalization of SBI subsidiaries.
1961: Insurance cover extended to deposits.
1969: Nationalization of 14 major banks.
1971: Creation of credit guarantee corporation.
1975: Creation of regional rural banks.
1980: Nationalization of seven banks with deposits over 200 crore.
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After the nationalization of banks, the branches of the public sector bank India rose to
approximately 800% in deposits and advances took a huge jump by 11,000%.
Banking in the sunshine of Government ownership gave the public implicit faith and
immense confidence about the sustainability of these institutions.
Phase III
This phase has introduced many more products and facilities in the banking sector in its
reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set
up by his name which worked for the liberalization of banking practices.
The country is flooded with foreign banks and their ATM stations. Efforts are being put to
give a satisfactory service to customers. Phone banking and net banking is introduced. The
entire system became more convenient and swift. Time is given more importance than
money.
The financial system of India has shown a great deal of resilience. It is sheltered from any
crisis triggered by any external macroeconomics shock as other East Asian Countries
suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high,
the capital account is not yet fully convertible, and banks and their customers have limited
foreign exchange exposure.
BANKS IN INDIA
In India the banks are being segregated in different groups. Each group has their own
benefits and limitations in operating in India. Each has their own dedicated target market.
Few of them only work in rural sector while others in both rural as well as urban. Many
even are only catering in cities. Some are of Indian origin and some are foreign players.
All these details and many more is discussed over here. The banks and its relation with the
customers, their mode of operation, the names of banks under different groups and other
such useful information’s are talked about.
One more section has been taken note of is the upcoming foreign banks in India. The RBI
has shown certain interest to involve more of foreign banks than the existing one recently.
This step has paved a way for few more foreign banks to start business in India.
Major Banks in India
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ABN-AMRO Bank
Abu Dhabi Commercial Bank
American Express Bank
Andhra Bank
Allahabad Bank
Bank of Baroda
Bank of India
Bank of Maharastra
Bank of Punjab
Bank of Rajasthan
Bank of Ceylon
BNP Paribas Bank
Canara Bank
Catholic Syrian Bank
Central Bank of India
Centurion Bank
China Trust Commercial Bank
Citi Bank
City Union Bank
Corporation Bank
Dena Bank
Deutsche Bank
Development Credit Bank
Dhanalakshmi Bank
Indian Overseas Bank
IndusInd Bank
ING Vysya Bank
Jammu & Kashmir Bank
JPMorgan Chase Bank
Karnataka Bank
Karur Vysya Bank
Laxmi Vilas Bank
Oriental Bank of Commerce
Punjab National Bank
Punjab & Sind Bank
Scotia Bank
South Indian Bank
Standard Chartered Bank
State Bank of India (SBI)
State Bank of Bikaner & Jaipur
State Bank of Hyderabad
State Bank of Indore
State Bank of Mysore
State Bank of Saurastra
State Bank of Travancore
Syndicate Bank
Taib Bank
UCO Bank
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Federal Bank
HDFC Bank
HSBC ICICI Bank
IDBI Bank
Indian Bank
Union Bank of India
United Bank of India
United Bank Of India
United Western Bank
UTI Bank
Fact Files of Banks in India
The first, the oldest, the largest, the biggest, get all such types of information’s about
Banking in India in this section.
The first bank in India to be given an ISO Certification Canara Bank
The first bank in Northern India to get ISO 9002 certification for their
selected branchesPunjab and Sind Bank
The first Indian bank to have been started solely with Indian capital Punjab National Bank
The first among the private sector banks in Kerala to become a
scheduled bank in 1946 under the RBI ActSouth Indian Bank
India's oldest, largest and most successful commercial bank, offering
the widest possible range of domestic, international and NRI products
and services, through its vast network in India and overseas
State Bank of India
India's second largest private sector bank and is now the largest
scheduled commercial bank in IndiaThe Federal Bank Limited
Bank which started as private shareholders banks, mostly Europeans
shareholdersImperial Bank of India
The first Indian bank to open a branch outside India in London in 1946
and the first to open a branch in continental Europe at Paris in 1974
Bank of India, founded in
1906 in Mumbai
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The oldest Public Sector Bank in India having branches all over India
and serving the customers for the last 132 yearsAllahabad Bank
The first Indian commercial bank which was wholly owned and
managed by IndiansCentral Bank of India
Bank of India was founded in 1906 in Mumbai. It became the first Indian bank to open a
branch outside India in London in 1946 and the first to open a branch in continental
Europe at Paris in 1974.
PUBLIC SECTOR BANKS:
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. Camilla Banking Corporation Ltd. (1914), Bengal Central Bank Ltd. (1918),
Camilla Union Bank Ltd. (1922) and Hooghly Bank Ltd.(1932).
Oriental Bank of Commerce (OBC), 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 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 Maharastra
Canara Bank
Central Bank of India
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Corporation Bank
Dena 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 Saurastra
o State Bank of Travancore
PRIVATE SECTOR BANKS:
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 tenth
largest development bank in the world as Private Banks in India and has promoted world
class institutions in India.
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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 liberalization 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 its account.
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
IDBI Bank
IndusInd Bank
ING Vysya Bank
Jammu & Kashmir Bank
Karnataka Bank
Karur Vysya Bank
Laxmi Vilas Bank
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South Indian Bank
United Western Bank
INDIAN BANKING INDUSTRY
The Indian banking market is growing at an astonishing rate, with Assets expected to
reach US$1 trillion by 2010. An expanding economy, middle class, and technological
innovations are all contributing to this growth.
The country’s middle class accounts for over 320 million People. In correlation with the
growth of the economy, rising income levels, increased standard of living, and
affordability of banking products are promising factors for continued expansion.
The Indian banking market is growing at an astonishing rate, with Assets expected to
reach US$1 trillion by 2010. An expanding economy, middle class, and technological
innovations are all contributing to this growth.
The Indian banking Industry is in the middle of an IT revolution, Focusing on the
expansion of retail and rural banking. Players are becoming increasingly customer -
centric in their approach, which has resulted in innovative methods of offering new
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banking products and services. Banks are now realizing the importance of being a
big player and are beginning to focus their attention on mergers and acquisitions to
take advantage of economies of scale and/or comply with Basel II
regulation.“Indian banking industry assets are expected to reach US$1 trillion by 2010 and
are poised to receive a greater infusion of foreign capital,” says Prathima Rajan, analyst in
Celent's banking group and author of the report. “The banking industry should focus on
having a small number of large players that can compete globally rather than having a
large number of fragmented players."
2. COMPANY PROFILE
Company History:
The HSBC Group is named after its founding member, The Hongkong and Shanghai
Banking Corporation Limited, which was established in 1865 to finance the growing trade
between Europe, India and China.
The inspiration behind the founding of the bank was Thomas Sutherland, a Scot who was
then working for the Peninsular and Oriental Steam Navigation Company. He realized that
there was considerable demand for local banking facilities in Hong Kong and on the China
coast and he helped to establish the bank, which opened in Hong Kong in March 1865 and
in Shanghai a month later.
Soon after its formation the bank opened agencies and branches around the world.
Although that network reached as far as Europe and North America, the emphasis was on
building up representation in China and the rest of the Asia-Pacific region. HSBC was a
pioneer of modern banking practices in a number of countries. In Japan, where a branch
was established in 1866, the bank acted as adviser to the government on banking and
currency. In 1888, it was the first bank to be established in Thailand, where it printed the
country’s first banknotes.
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From the outset trade finance was a strong feature of the local and international business
of the bank, an expertise that has been recognized throughout its history. Bullion,
exchange, merchant banking and note issuing also played an important part. By the 1880s,
the bank was acting as banker to the Hong Kong government and also participated in the
management of British government accounts in China, Japan, Penang and Singapore. In
1874 the bank handled China’s first public loan and thereafter issued most of China’s
public loans.
What is HSBC?
We are the world’s local bank.
Headquarters in London, HSBC is one of the largest banking & financial services
organization in the world.
HSBC’s international network comprises over 9500 offices in 76 countries & territories in
Europe, the Asia-Pacific region, the Americas, the Middle East & Africa.
With listings on the London, Hongkong, New York, Paris & Bermuda stock exchange
shares in HSBC holdings places are held by nearly 200,000 shareholders in some 100
countries & territories. The shares are traded on the New York stock exchange in the form
of American Depository Receipts.
Through an international network linked by advertisement techniques, including a rapidly
growing e-commerce capability, HSBC provides a comprehensive range of financial
services like-
1. Personal financial services
2. Commercial Banking
3. Corporate Banking
4. Investment Banking
A) BACKGROUND AND INCEPTION
THE HSBC GROUP IN INDIA
Year of commencement of operations in India
The Mercantile Bank of India, China & London : 1853
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The Hong Kong & Shanghai Banking Corporation Limited (HBAP) : 1867
HSBC Securities & Capital Markets (India) Private Limited (HBAP) : 1995
HSBC Electronic Data Processing India Private Limited (HDPI) : 2000
HSBC Primary Dealership (India) Private Limited (HCPD) : 2001
HSBC Professional Services (India) Private Limited (HPSI) : 2001
HSBC Software Development (India) Private Limited (HSDI) : 2002
HSBC Asset Management (India) Private Limited (ISIN) : 2002
HSBC Insurance Brokers (India) Private Limited (ININ) : 2003
HSBC Operations & processing enterprise (India) Pvt. Ltd. (HOPE) : 2003
Canara HSBC Oriental bank of commerce Life insurance co. Ltd. : 2008
HSBC Group Entities in India
Commercial Banking
The Hongkong and Shanghai Banking Corporation Limited (HSBC)
Personal Banking
HSBC offers a wide range of personal financial services, including personal lending and
deposit products, through its branch network in Ahmedabad, Bangalore, Chennai,
Chandigarh, Coimbatore, Gurgaon, Hyderabad, Jaipur, Kochi, Kolkata, Ludhiana,
Mumbai, New Delhi, Noida, Pune, Thane, Trivandrum and Visakhapatnam. Also offered
branch-wide are international Gold and Classic credit cards from VISA and MasterCard
and debit cards from Visa. Customers have access to 24-hour banking services through an
extensive network of automated teller machines (ATMs), an integrated Call Centre, and
internet banking - online@hsbc.
Non Resident Indian Banking
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HSBC's Non Resident Indian Banking (NRI) centres located in Asia-Pacific, the Middle
East, Europe and North America, together with HSBC's offices worldwide, provide the
international Indian Diaspora access to a range of products and services. These include
NRI related investment (both international and domestic), transactional and deposit
products, together with a full range of personal and private banking products in India and
overseas. Internet banking also provides easy access to HSBC's services.
Financial Planning Services
Services include investment and custodian management and access to stock broking and
insurance services, which are offered to resident as well as non-resident Indians.
Corporate Banking
HSBC has well-established, long-term corporate banking relationships with large domestic
Indian corporations and foreign multinationals operating in India. Services include term
and working capital finance, trade facilities, corporate deposits, syndications, payments
and cash management services and factoring.
Business Banking
HSBC's Extra Mile Business Banking offers two types of account to small and medium-
sized businesses - The Business Account and the BusinessVantage Account. Services
include Business Phone Banking, Business Doorstep Banking and Multi Branch Business
Banking.
Payments and Cash Management
HSBC provides integrated domestic and regional transaction support to corporate clients
through a sophisticated range of cash management solutions, including collection and
payment services and integration with customer back-end systems. Operations and client
services are ISO 9001 certified. Hexagon, the HSBC Group's dedicated electronic banking
service allows users to perform financial transactions, obtain international financial
markets information, and review details of their domestic and international accounts, from
anywhere in the world, 24 hours a day.
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Trade (international and domestic) and Factoring Services
A wide range of solutions tailored to meet customer's requirements for both domestic and
international businesses is offered. HSBC is also one of the leading banks involved in the
bullion business through its offices in Ahmedabad, Bangalore, Chennai, Hyderabad,
Kolkata, New Delhi and is supported by the Group's global expertise in the precious metal
business. HSBC is the leading provider of trade services in India and its trade centres are
ISO 9002 certified.
Institutional Banking
Working closely with Group offices in India and overseas, trade services, payments and
cash management, treasury and capital markets, custody and clearing, and correspondent
and electronic banking activities are offered to banks, financial institutions, securities
houses, insurance companies, asset management companies and other non-banking
companies, non government and development organisations operating in India.
Treasury and Capital Markets
Clients consistently rate HSBC's Treasury business as one of the best in India. Its dealing
room in Mumbai is one of the largest in the country, serving clients in Mumbai and in the
major metropolitan centres across the country. It provides a comprehensive range of
products which include - foreign exchange, money market and fixed income products and
derivatives in both rupees and major currencies.
Custody and Clearing
The leading custodian in Asia, HSBC's custody and clearing services are available in 28
markets in Asia-Pacific and the Middle East. With experienced staff and the latest
technology, HSBC is the premier provider of sub-custodian and clearing services to
foreign institutional investors (FIIs) in India. HSBC clients include the domestic fund
management sector in both the retail and institutional segments. Institutional Fund
Services launched by the bank offers a comprehensive suite of products to domestic
mutual funds and insurance companies ranging from custody, fund administration
services, unit distribution and Cash Management Services.
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Technology
The HSBC Group develops and applies advanced technology to the efficient and
convenient delivery of banking and related financial services. In India, the Group
provides:
Self-Service Banking with over 150 in-branch and off-branch ATMs and 24-hour
Phone Banking.
Trade and Corporate Banking services with real-time access to a centralised
information database
Instantaneous inter-city transactions through online connections between all
branches
A state-of-the-art treasury dealing system
A sophisticated card system supporting debit and credit cards, domestic and
international VISA, MasterCard, and co-branded cards
A dedicated acquiring system for both MasterCard and Visa transactions
online@hsbc, HSBC's internet banking service, provides customers with an
integrated and secure platform to access their accounts.
Internet Payment Gateway handles credit card transactions on the internet
Asset Management
HSBC Asset Management (India) Private Limited provides a comprehensive range of
investment management solutions to a diverse client base and is committed for aiming to
deliver consistent investment performance, world-class service and a broad range of
solutions for all types of investors. Our range of offerings in India comes under two broad
categories Mutual Fund and Portfolio Management Services.
HSBC Global Resourcing
HSBC Global Resourcing is the largest, captive, banking and financial services off shoring
organization in the world. A vital part of the HSBC Group's global strategy, Global
Resourcing plays a key role in delivering shareholder value and seamlessly integrates and
helps the Group remain competitive in the ever changing world of banking and finance.
Global Resourcing is present in India as HSBC Electronic Data Processing India Pvt.
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Ltd., and operates out of 7 Group Service Centres (GSC) in Hyderabad, Bangalore,
Kolkata, and Vishakhapatnam.
Insurance
HSBC Insurance Brokers (India) Private Limited is licensed by the Insurance
Regulatory Development Authority (IRDA) to operate as a composite insurance broking
company, which will function as a direct and a reinsurance broker.
Data Processing
HSBC Operations and Processing Enterprise (India) Private Limited, through two
centres in Mumbai and Chennai, provides operational processing services for HSBC
offices in India.
B) NATURE OF BUSINESS CARRIED
The HSBC Group is one of the largest banking and financial services organisations in the
world, with well-established businesses in Europe, the Asia-Pacific region, the Americas,
the Middle East and Africa.
C) VISION, MISSION AND QUALITY POLICY
Vision:
As a member of HSBC family which has been serving its millions of customers worldwide
since 1865, to take our place among Turkey’s most powerful, most profitable, most
admired leader banks.
Mission:Having regard to ethical values; to meet its customers financial needs in the
fastest and most appropriate way, to continue innovative works in order to achieve: human
resource with superior qualities, technological infrastructure and service packages.
Our Values:
1) To exceed customer expectations in service quality.
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2) To be a pioneer in the implementation of technologies those create distinction for its
customers, employees and shareholders.
3) To keep its reliability at the utmost level with the contribution of its strong capital
structure and liquid assets.
4) To make a positive contribution to the community
5) To respect meritocracy during hiring processes, improving knowledge and skills of its
employees, creating the mostly preferred work environment.
D) PRODUCTS AND SERVICES PROFILE
HSBC IRS Products
Paper Collection
Electronic Collections
Receivables Management System
Paper Collection
IRS is structured to offer quick realisation of your instruments, local or outstation. The
proceeds of all cheques deposited with HSBC can be concentrated into a designated
central account at any of our branches. Consequently you have better control on your cash
flows and the reconciliation and monitoring requirements associated with multiple
accounts are eliminated. Information on these collections is delivered to you through
HSBCnet.
IRS further delivers a variety of collection reports that can be used for automating the
reconciliation process at your end.
Electronic Collections
IRS helps your business process improvement objectives with a comprehensive array of
electronic collections, including
Domestic electronic funds transfer such as RTGS, NEFT, ECS
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International wire transfer
Direct debit
Receivables data accompanying these transactions is captured and delivered to you
electronically to support your customer order fulfillment, credit management and
reconciliation process.
Receivables Management System
Built with advanced modular technology, our receivables management system brings
together all the IRS components. Its automated reconciliation and information
management modules are fully integrated with the collections and processing features of
IRS. As the backbone of IRS, our receivables management system:
Consolidates receivables information across electronic and paper collections
Automates accounts receivables reconciliation using your pre-defined matching
parameters for funds received against various invoices
Delivers collection reports structured to meet your specified needs
Provides online transaction enquiry
HSBC Premier Products
Premier Checking
Premier Investor Savings Account and Preferred Rates on CDs
Premier Credit Card Privileges and Rewards
Premier Wealth Management1
Premier Mortgage and Home Equity
HSBC Premier Services
HSBC ATMs worldwide
Global View - monitor balances of your worldwide HSBC accounts online in one
convenient place with Global View2. Launch the demo to learn more.
Global Transfers -free instant fund transfers online between your worldwide HSBC
accounts, whichever country they are in2
Dedicated HSBC call centers will connect you to a qualified person who speaks your
language and can give you immediate assistance 24/7.
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As an HSBC Premier client, you have access to a Premier Relationship Manager who
you can contact for guidance, support and access to all that HSBC has to offer.
Receive personalized attention and global insights from your Relationship Manager,
no matter where in the world you are.
Connect with a Relationship Manager at any one of our Premier Centers worldwide3
Product IRS Services
Global Trade Solutions: Get the edge in the competitive international market
Cash Management: Manage your cash flow effectively.
Factoring Solutions: Financing that keeps up with your business growth.
Business Current Accounts: Give your business the superior service advantage.
Business Loans & Overdrafts: Propel your business to further growth.
Foreign Exchange Services: Gain from our 24-hour global coverage and knowledge of local markets.
E) AREA OF OPERATION:
The company is operated globally.
Australia
· HSBC Bank Australia
· HSBC Trustee (CI), Ltd.,
South America:
· HSBC Bank Brazil SA, Banco Multiplo
· HSBC Bank Argentina SA
· HSBC Bank Peru SA
· HSBC Bank Chile SA
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· HSBC Bank Uruguay SA
· HSBC Bank Paraguay SA
· HSBC Bank Colombia SA
Asia:
· HSBC Armenia
· HSBC Bangladesh
· HSBC Brunei
· HSBC Bank India
· HSBC Indonesia
· HSBC Sri Lanka
· HSBC Pakistan
Asia Pacific:
· The Hongkong and Shanghai Banking Corporation Ltd
· Hang Seng Bank Ltd
· HSBC Bank (China) Company Ltd
· HSBC Bank Malaysia Berhad
Europe:
· HSBC Algeria
· HSBC Global Assets Management Austria
· HSBC plc, Belgium HSBC Bank plc
· HSBC Bank Armenia
· HSBC France
· HSBC Trinkaus und Burkhardt AG
· HSBC Private Bank (UK) Ltd
· HSBC Bank Polska S.A.
· HSBC Bank A.Ş.
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· HSBC Bank Malta Plc
· HSBC Bank Kazakhstan
Middle East:
· HSBC Bank Middle East Ltd
· HSBC Bank Egypt SAE
· The Saudi British Bank
· HSBC Bank Kuwait
· HSBC Bahrain
North America:
· The Hongkong and Sanghai Banking Corporation Ltd.,Bahamas
· HSBC Bermuda
· HSBC International Trustee (BVI) Ltd.
· HSBC Bank Cayman
· HSBC Bank USA Inc
· HSBC Finance Corporation
· HSBC Bank Canada
· HSBC Mexico SA
f) OWNERSHIP PATTERN
Name Designation
Ajay Dua Director
Hardeep Singh Chairman / Chair Person
Kashmira Mathew Company Secretary
Kashmira Mathew Secretary
Louisa Cheang Additional Director
Manasije Mishra Managing Director & CEO
Manasije Mishra CEO
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Manasije Mishra Managing Director & CEO
Naina Lal Kidwai Director
Sonal Dave Director
Shareholding pattern - HSBC InvestDirect (India) Ltd.
Holder's Name No of Shares % Share Holding
Promoters 37317464 52.72%
ForeignPromoter 32071450 45.31%
GeneralPublic 660546 0.93%
OtherCompanies 563990 0.80%
NBanksMutualFunds 110253 0.16%
ForeignInstitutions 35657 0.05%
Others 25212 0.04%
ForeignNRI 4901 0.01%
FinancialInstitutions 300 0.00%
g) COMPETITORS INFORMATION
Main Competitors:
Barclays
Citigroup
Royal Bank of Scotland
Other competitors
Catholic Syrian Bank
Centurion Bank
City Union Bank
Development Credit Bank
Federal Bank
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HDFC Bank
ING Vysya Bank
ICICI Bank IndusInd Bank
United Western Bank
h) INFRASTRUCTURE FACILITY
Facilities provided to the employees of the BANK:
Statutory facilities:
The bank provides statutory facilities to its employees which are as follows:
Canteen:
There is a subsidized canteen in the bank which supplies tea, snacks and meals coupons
are provided to the employees and the canteen works round the clock.
First Aid:
It is well equipped with all the medical equipments required for first aid. An ambulance is
also provided for employees during emergency.
est room and Lunch room: The bank has provided a rest and lunch room for its
workers.
Other facilities provided by the bank:
Individual lockers are provided for each worker in their respective dept to keep their tools
and other belonging.
Open air Auditorium There is a huge open air auditorium, which can
accommodate 5000 peoples. Various cultural activities are conducted occasionally
over here and feature films are screened occasionally.
Guest House
The guest house is at amidst of lush green gardens, which provides suit for management
staff.
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i) ACHIEVEMENTS AND AWARDS
Awards Won in 2011
In March 2011 HSBC won Euromoney Rates Survey 2011 award.
In February 2011 Euroweek Syndicated Loan and Leveraged Finance Asia
Awards 2010
Awards Won in 2010
HSBC won the innovation in recruitment-Employer Branding award at the 4 th
Employer Branding Awards, 2009-10 ceremony.
HSBC was awarded with the first Capgemeni Leadership Award for innovation by
Capgemini, at the Nasscom-Capgemini Global Leadership Awards.
HSBC Asset Management India Private Limited(AMIN).
HSBC MIP-Savings was recently rated CPR~1 by CRISIL for its 2 year
performance for the period ended Mar 2010 in the open end aggressive MIP
category.
Past performance may or may not be sustained in the future and is no guarantee of
future results.
Awards Won in 2009
HSBC won the BML Munjal Award for Excellence in learning and development
for the year 2009 in the private sector category.
HSBC India was declared the winner of the Golden Peacock National Training
Award for 2009,an award that recognizes organizations that show real initiative
and commitment to development of their employees
HSBC was ranked second Best Bank in the Hewitt Best Employers Study of 2009
HSBC has been ranked second amongst the Financial Institutions and 22nd amongst
all companies in an Outlook business Hewitt Associations Study.
HSBC won the prestigious Green Globe Award in the business enterprise category
for its commitment to environment sustainability.
Commercial banking
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HSBC was the proud recipient of two awards at the first ever Dun & Brandstreet
Bank Awards-for Best Asset Quality-Foreign Banks and Best SME Financing-
Foreign Banks.
HSBC Securities Services
HSBC was adjusted as the Best Securities Services Provider in India by Asian
Investor in the Asian Investor Service Provider Awards, 2009.
Top Rated category in the Global Custodian Agent Banks Survey, for the 8 th year
in a row, in 2009.
Marketing
INM Marketing won Gold at the National Media Abbys 2009 for Best Use of
internet and new media for its compaign ‘Wimbledon Fever in your inbox’.
HSBC Technology Services
Won IQPC award under ‘Best Innovative Six Sigma Project’ at the Prestigious
Asian Six Sigma Awards2009, Singapore.
SCMHRD Lean Six Sigma Awards 2009, Pune.
Winner of the ‘Bombay Chamber of Commerce Civic Awards’ under the Art,
Culture & Heritage category-all credit to the GCR and ADMN team
HSBC INM branch at Vadodara was awarded with USGBC LEED ‘Platinum’
rating certificate in the Commercial Interiors Category in Dec 2009.This is the
highest rating that any building can achieve in LEED certification.
HSBC Asset Management India Private Limited (AMIN).
ICRA Mutual Fund Award 2009-HSBC Monthly Income Plan-Saving Plan has
been ranked a ‘five star fund’indicating performance among the top 10%in the
category of ‘open ended marginal equity’ for three-year period ending 31
December 2008.
HSBC Equity Fund was ranked 5 star fund by Value Research Online in March
2009.
j) WORKFLOW MODEL:
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LEAD SHEET COMPLETION
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APPLICATION
MINIMUM CREDIT PARAMETERS CHECKS
ORIGINAL DOCUMENTS VERIFIED
FIELD VERIFICATION AS PER VERIFICATION STRATEGY
REFERENCE CHECKS
TELEPHONIC VERIFICATION
FILE SENT FOR APPROVAL
AGREEMENT AND PDCs TO BE SIGNED BY THE CUSTOMER
SCRUTINIZED AND SENT TO OPERATIONS
CHEQUE IS PRINTED AND CASE IS DISBURSED
k) FUTURE GROWTH AND PROSPECTS:
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Emerging markets will continue to outperform developed economies this year, but policy-
makers will continue to face the challenge of rising inflationary pressure, said Fred
Neumann, managing director and co-chief of Asian Economics Research for the Hong
Kong and Shanghai Bank (HSBC).
He also remains optimistic about Thai economy, saying political uncertainty is only a
short-term issue.
"Emerging markets re-accelerated in the fourth quarter last year," Neumann said, referring
to the HSBC emerging markets index (EMI) quarterly weighted composite indicators
based on 20 manufacturing and service sectors derived from the Purchasing Managers
Index (PMIs) surveys conducted across 16 emerging markets. The EMI rose to 55.7 in the
fourth quarter versus 54.2 in the third quarter, he said in a teleconference from Hong
Kong.
Manufacturing has rebounded especially in China, India, Israel, Poland and Turkey, he
explained, adding that India had recorded strongest growth in new exports in the fourth
quarter, while China's new exports growth was modest but fastest in three quarters.
Neumann said domestic demand in emerging market has been driving growth. Domestic
demand outperformed exports last year, and two of the top 10 markets showing export
growth were the emerging markets of India and Czech Republic, which reflected
continued weak demand from the West.
This demonstrates a de-coupling from the West as trade among emerging markets has
increased, and if more trade barriers were dismantled, trade between these markets would
even rise higher, Neumann added.
"I do believe the de-coupling will remain, growth of spending by Chinese consumers is
higher than US consumers," he said in response to a question on whether de-coupling
would remain in the next few years. However, he warned that the biggest risk was
inflationary pressure. If policy-makers are unable to tame inflation to prevent overheating
of their economies, it could lead to the bursting of the asset bubble. Then emerging
economies would become vulnerable and suffer a slump for many years.
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Yet, Neumann said he did not think inflation would spiral upward as it did in 2008, when
crude oil prices exceeded $100 a barrel, but that the increase would be gradual.
He said he expected central banks in Asia to tighten monetary policy rates in order tame
inflation. Neumann also said he did not believe that Bank of Thailand would raise the
policy rate in the next meeting as it could afford a bit of inflationary pressure in order to
let the economy grow. He is also opti?mistic about the future of the Thai economy.
"Political headwinds are a short-term problem and the fundamentals of Thai economy is
very sound," Neumann said.
Thailand is expected to be among the top 30 largest economies in the world, led by China,
in 2050, according to HSBC's long-term projections. Thailand should climb by seven
places and be ranked at 22 among 30. The size of the economy is expected to be worth
$856 billion in 2050 and per capita income should rise to $11,674 from $2,744 in 2010.
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3. MCKENSY’S 7S FRAME WORK:
There are many management approaches which talk about managing the things and
Operation in an organization. One of the famous modes to analyze the pattern of
management is Mc 7’s frame work. The 7’s model is better known as Mc Kinsey’s, this is
because the two persons who developed this module. Tompetus & Robert waterman has
been consultant at Mc Kinsey’s and co.
They described that an organization is not that just structured but consist of 7’s elements.
This can be distinguished into so called Hard S’s & Soft S’s. The model is very much
helpful in viewing the interrelationship of strategy formation and interpretation it focus
manger attention to a verification of activities. That may effect the implementation of any
strategy as the model originally developed as a way of thinking more broadly about the
problem of organizing effectively. It is a judge tool for the implementation of the strategy.
The 7’s model is mainly distinguished into two types.
1. Hard S model
2. Soft S model
The hardest elements are visible and easy to identify as they can be found in a
strategy elements, corporate plans, organization charts and other documentation of the
company. They are
1. Strategy
2. System
3. Structure
The soft element involves difficulty in describing there capabilities, values, and
elements of corporate culture. They are.
1. Style
2. Staff
3. Skills
4. Shared values
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These Mc Kenzy’s framework is used in this research study to study about HSBC BANK.
STRUCTURE:
The head office of HSBC bank is CHENNAI HSBC bank has various branches in &
around India. HSBC has various branches in Delhi, Calcutta, Chennai, Bangalore etc
covering various networks.HSBC has the client driven channel provides callers with easy
access to credit cards, banking as well as demat &clients can enquire about the products
offering of HSBC.
HUMAN RESOURCE DEPARTMENT
Functions:
1. An effective utilization of human resource in the achievement of organization
goals.
2. Maintain a desirable working relationship among all the members of the
organization.
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3. Generate maximum individual and group development within in the organization.
4. Develops the human resource and their knowledge, skills and potentialities.
5. Creating the right attitude among the employees through effective motivation.
``
Organizational Structure of HSBC Bank
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Share Holders
Board members
Chief Executive officer
Risk Mgmt Financial Control
HTS HRM Commercial banking
Internal Audit
Lean Mgmt unit
PFS Credit card
Legal Dept
Operations
Finance
Treasury admin
IT OPNS
Software delivery
Change Delivery
Procurement
Property/security
Recruitment and Selection
Pay and Compensation
Training and Development
Trade and Service
Payments and Cash
Cash Counter Contact Center and Front End Collection
Back End Collections
Payments Bank operations ATM &Merchant acquiring
Facility documentation
Service Delivery
Processing Account Maintainance Mailing/scanning
Global banking and
Markets
Dealing
Corporate and institutional
Dept.
Marketing
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MARKETING DEPARTMENT
Functions:
1. Increase sales volume.
2. Carry out the promotional activities.
3. Increase profitability.
4. Train and motivate the work force.
5. Motivates distributor, retailers, and other middlemen.
6. Carry out sales promotion activities.
FINANCE DEPARTMENT
Functions:
1. To ascertain the expenses incurred in producing a product.
2. To find the cost per unit that is by taking into the account of the total cost and
production of a particular product.
3. To allocate the costs incurred into 3 main categories namely factory, office, and
selling overhead.
4. To compare budged cost with actual cost and calculate the variance if any.
5. To advice the production department to decrease the cost, minimize wastage and
idle time.
6. To implement cost control technique and methods.
STYLE :
Style refers to the employee’s shared & common ways of thinking & behaving unwritten
norms of behavior & thought. Style also refers to the way management behaves
&collectively spends its time to achieve organizational goals.
There are various ways of leadership style which can be adopted.
Sharing leadership is key to the white stag philosophy of leadership, because overtly
promotes the distribution of the function of the leader among the group.
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An individual style in interacting with others is an outward sign of the substance within
experience, we can really tell a lot about people’s capabilities by looking at them but it is
better to watch them in action.
Leadership style in HSBCBANK:
It has been observed in HSBC BANK that the behavior of superior towards the
subordinate is much decent & pleasant. The superior motivate the fresher who are working
under them. The superior tells the subordinate what exactly he has to do, the objective of
the work is clearly defined to them, any difficulty in accomplishing the task the superior
can be consulted & he/she guides in a proper direction.
It is also observed that while speaking to their subordinate, superiors move very friendly &
affectionately & moreover the views of subordinates are considered for decision making.
As a fresher I observed that the superiors respect our efficiency & they view us an
important participant in the objectives of the company as well as relationship with
subordinates. The superior in charge periodically conducts meetings with their
subordinates & set the tasks ahead, periodically seminars are conducted to get the new
updated information. SO THE LEADERSHIP STYLE FOLLOWED IN HSBC BANK IS
PARTICIPATIVE STYLE.
STRATERGY :
The word strategy has been derived from Greek word “Strategos” which means general.
Strategy is the pattern of objectives, purposes, or goals stated in such a way as to define
what business the company is in or are to be in & the kind of company it is or it is to be
strategy is a systematic action & allocation of resources to achieve company aims.
Strategy of HSBC BANK: HSBC BANK seeks to perform its role in the social sector
through a dedication, not a profit group they are the social initiative group. The strategies
include the following initiatives:
This is in recognition of the fact that resources being limited, the efficient use is
imperative if the maximum number is to be benefited.
Cost effectiveness
The initiative drawn must be scalable; scalability implies the ability to draw upon
the important elements, it should be possible to do so at national level, even if the
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program itself is not directly scalable it should be possible to take away significant
lessons from it in order to enrich work in other settings.
In order to achieve the achieve the desired objectives or goals in there focus areas,
the SIG (SOCIAL INTIATIVE GROUP) tends to support reasonably larged sized
initiatives so that issues such as cost effectiveness, scalability & impact assessment
can be dealt directly
SYSTEMS :
In McKinsey’s 7s model, systems means any procedures & processes such as
manufacturing processes, management information system, budgeting & control
processes. In HSBC BANK the branch managers, relationship managers, & business
development executives are periodically reviewed of their performance and each branches
are ranked as per their branch performance & based on performance the branches ranked.
Management information system: This is an interlocking frame work of hardware of
people and procedures. The strategic day to day running of the business repairs the speedy
collection and flexible interval of information. This help in day to day activities of trading
for buying & selling of shares.
SHARED VALUES :
Are the values shared by the members of an organization, shared values means that the
employees share the same guiding values. Values are things that you would strive for even
if they were demonstrably not profitable. Values act as an organization’s role in the larger
community in which it functions.
The organizations main values are stated in its VISION & MISSION STATEMENTS.
So it is the responsibility of every employee of the organization to share these values, so
that every employee of the organization can give their best for the achievements of these
values.
STAFF :
Staff means that the company has hired able people, trains them well as per the job
specifications & assign them the right jobs. It is also observed that staff is given adequate
trainings to get exposed to recent techniques in their respective areas. The staff members
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are also often job rotated to get exposed to various new tasks. Selection, training, reward,
recognition, retention, motivation & assignment to appropriate work are all key issues. So
it means how an organization effectively recruits, trains their people & assigns them the
right job.
Human capital is very important at HSBC; the numbers of employees are increasing
rapidly. HSBC BANK had just 445 employees in 1997, but in year 2002 the figures stood
at 7700, &presently the strength has increased to 14000 employees. Training is a big thing
at HSBC; each employee spends at least 69 hours during the year recharging himself.
As a rapidly growing organization HSBC BANK gives opportunities to induct PG students
from various graded business schools across the country. HSBC is very proud of its ability
to nurture the individuals & to develop in them new talents which they possess. “If we are
in the verge of completing the management education and believe that the amazing world
of banking is for us, there is no better place to start OUR CAREER IN HSBC BANK”
(1) Receiving Teller's Department (Teller) - Receives, receipts for and proves deposits,
distributes checks to bookkeepers and other departments, prepares exchanges for clearing
houses, and turns cash over to the paying teller at end of day.
(2) Collection Department (Teller) - Collects notes, drafts and other "time" items when
payable out of town, and credits accounts of depositors when collections are advised paid.
(3) General Ledger Department (Bookkeepers) - Keeps the general or control accounts of
the bank, and makes up the bank's statement of condition.
(4) Auditor's Department (Executive) - This department is responsible for the settlement of
the various departments, reconciles the accounts with other banks, and certifies interest
calculations.
(5) Loan or Discount Department (Executive) - Receives notes submitted for discount or
makes loans, figures discount and interest, and has charge of collateral securing loans.
SKILLS :
Skills refer to the fact that employees have the skills needed to carry out the company’s
strategy. Training and development help employees to do their jobs to perfection and also
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helps in getting acquainted with latest techniques. The skill required in HSBC BANK
depends on the nature of work, their grades and designation.
4. SWOT analysis:
A SWOT Analysis is a strategic planning tool used to evaluate the Strengths,
Weaknesses, Opportunities, and Threats involved in a project or in a business venture or
in any other situation requiring a decision. It involves monitoring the marketing
environment internal and external to the company. The technique is credited to Albert
Humphrey, who led a research project at Stanford University in the 1960s and 1970s using
data from the Fortune 500 companies.
Strengths: attributes of the organization that is helpful to achieving the objective.
Weaknesses: attributes of the organization that is harmful to achieving the
objective.
Opportunities: external conditions those are helpful to achieving the objective.
Threats: external conditions those are harmful to achieving the objective.
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The aim of any SWOT analysis is to isolate the key environmental factors that are
important to the marketing plans of the organization. SWOT groups key pieces of
information into two main categories:
Internal factors - The 'strengths' and 'weaknesses' internal to the organization, i.e.,
its strategies and its position in relation to its competitors.
External factors - The 'opportunities' and 'threats' presented by the external
environment and the competition.
Strengths and Weaknesses: financial, intellectual, locational, Customer service,
Efficiency Competitive advantages, Infrastructure, Quality, Staff, Management, rice
Delivery time, Cost Capacity etc,.
Opportunities and Threats: Economic condition, Expectations of stakeholders,
Technology, Public expectations etc,.
STRENGTHS:-
1. Brand Name: The biggest strength is the tag of HSBC is going to be the largest group of MNC’s.
2. Compatible Price:
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Prices of different schemes of HSBC are much more compatible than others.
3. Diversified Schemes:
We have diversified schemes, which is an exception case of HSBC.
4. Less Risk:
Our debt schemes are 100% free form market risk. Even as our portfolio is that
diversified so equities are also less risky than others.
5. Easy procedures for account opening too:
We have an easy system for opening the account as it includes investment & being
named as saving account for the costumer future benefits.
6. Debit cum ATM card facility:
The main advantage of HSBC’s Debit cum ATM card is that you can access this
card through any VISA supported ATM’s & withdraw your amount, without any
single charge to be paid.
WEAKNESS:-
1 Prone to Market Risk:
Mutual Funds depend on overall macroeconomic condition and market scenario.
2 Tough Competitions:
There is a very tough competition because of large number of Asset Management
Companies.
3 Incapability of Customers:
HSBC only provides 2 types of account opening of which one is PVA (Power
Vantage Account) under which an aqb of 1 lakh is to be maintained & the second
one is Premier Account, under which an aqb of 25 lakh is to be maintained. This is
sometimes beyond the reach of a middle class person.
OPPORTUNITIES:-
1 Hoarding:
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Most of the Indians have black money that too in huge amount i.e. the do not
have money in banks, so approaching them is beneficial, so that through the
opening of this account they can make further investment.
2 Indian Capital Market is Growing:
So more & more new investors are interested in investments.
3 Tailor Made Products:
We have tailor made products like sector specified schemes & even diversified schemes.
4 Branch Expansion:
Large no. of branches are opening day by day and even we are traping the
countries having almost same type of socio-economic condition & even same
culture etc.
THREATS:-
1 Tough Competition:
As there are so many banks having almost same kind of schemes, so it’s tough to
compete with.
2 Unawareness:
Majority of population is not aware of HSBC brand name and even because of
other banking facilities which are much cheaper than HSBC’s services, so it’s
hard to convince people.
3 Changing Scenario:
Our market scenario is changing day-by-day i.e. our market is fluctuating, so this
makes investor hard to invest.
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5. ANALYSIS OF FINANCIAL STATEMENT:
Balance sheet for the India Branches as at 31 March 2010
(Currency: Indian rupees in thousands)
31-Mar-10 31-Mar-09
CAPITAL AND LIABILITIES
Amount of deposit kept with Reserve Bank of India
under section 11(2) (b) of the Banking Regulation Act,
1949
Capital 44,991,660 44,991,660
Reserves and surplus 76,360,692 67,151,465
Deposits 557,478,247 499,702,753
Borrowings 59,208,139 84,684,459
Other liabilities and provisions 166,215,186 249,673,529
TOTAL 904,253,924 946,203,866
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ASSETS
Cash and balances with Reserve Bank of India 39,716,165 37,123,770
Balances with banks and money at call and short notice 41,823,856 75,202,428
Investments 412,890,656 311,538,200
Advances 234,747,670 275,886,858
Fixed assets 8,928,756 8,353,196
Other assets 166,146,821 238,099,414
TOTAL 904,253,924 946,203,866
Contingent liabilities 8,509,535,228 8,147,158,513
Bills for collection 9,817,220 84,293,895
SUMMARY
From the above we can determine the financial position of the concern.
When comparing balance sheet of 2009 and 2010 the net worth of the company has been
increased in the year 2010 when compared to 2009. The total has been increased from
946,203,866Rs to 904,253,924Rs
It shows that the company is growing year by year.
Profit and loss account for the India Branches for the year ended 31 March 2010
(Currency: Indian rupees in
thousands)
31-Mar-10 31-Mar-09
INCOME:
Interest earned 51,658,815 63,269,285
Other income 21,354,836 26,994,218
TOTAL 73,013,651 90,263,503
EXPENDITURE
Interest expended 19,146,572 26,610,018
Operating expenses 19,501,215 21,946,691
Provisions and contingencies 26,266,735 28,793,982
TOTAL 64,914,522 77,350,691
Net profit for the year 8,099,129 12,912,812
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Profit brought forward 9,264,515 1,377,429
TOTAL 17,363,644 14,290,241
APPROPRIATIONS
Less:
Transfer to statutory reserve 2,024,782 3,228,203
Transfer (from)/to investment reserve (335,667) 335,667
Transfer to specific reserve 206,523 84,427
Transfer to capital reserves --- 1,377,429
Balance carried over to balance sheet 15,468,006 9,264,515
TOTAL 17,363,644 14,290,241
When comparing Profit and loss account of 2009 and 2010, the net worth of the company
has been increased in the year 2010 when compared to 2009. The total has been increased
from 14,290,241Rs to 17,363,644Rs.It shows that the company is growing year by year.
6. LEARNING EXPERIENCE
The ten weeks summer project have helped me in learning a lot. This program helped me
in understanding the various aspects of banking industry. The training, at HSBC bank was
a new and challenging experience. It always remains as a dream, to get an opportunity to
take up such study at a private banking sector. Unlike private sectors, the employees
working in Public/Government sector do not have the right to take decision by themselves.
It was a great knowledge based and an excellent training program had in HSBC bank.
While at training exposure was gained on the working environment and also the decision
making process. It was a great learning experience working with the professional
personalities.
I collected all the required information of the second part of the Part A that is Company
profile and this gave me knowledge about the organization like their mission, vision, their
background, history etc...
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The Part B of the project it was more like a practical experience. The staff member’s
encourage and guided me in understanding the internal aspect of the bank like how their
bank structure is, their various department and their functions. They gave me a complete
insight into their strategies-like what is strategy they are adopting now and in the future to
achieve goals of the company.
The bank structure which prescribes the formal relationship among various position &
activities were clearly defined. HSBC bank develops such kind of relationship which
creates confidential understanding between the staff and department. The members in the
bank were friendly and co-operative, disciplined, and prompt in their work. They make
performance appraisal once in a year for promoting the employees. Decision is taken by
taking the views of all the concerned employees who are affected by that decision.
Employee’s suggestions are well-come and rewarded. They conduct training and
development programs after identifying need for that. They organize both internal and
external training.
The style which company is following is participative in nature. The decisions were made
in the company and the report will be submitted to all departments. The staff members
were well co-ordinate and supportive with each other.
I learnt what is the present position of the bank through the SWOT analysis.
It is very much necessary to understand the theoretical concepts of the subject. These will
make an ease for the study and also helps to work efficiently. But during the training
period it is needless to say that the theoretical knowledge gained at class room is entirely
different from actual practice within the organization.
To conclude we may say that, to study the complete organization, pertaining to the nature
of the business that they carry, nature of the work flow, ten weeks is very short, there was
a time constraints. It is a great memorable experience for me that getting experience in
Corporate Environment. The project has given an opportunity to learn those practical
skills. The project had helped to get familiar with the working environment which is most
essential to start the career.
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A Study on Customer Satisfaction Towards HSBC Bank
PART-B
CHAPTER-1
1. GENERAL INTRODUCTION
Customer Satisfaction:
Customer satisfaction is equivalent to making sure that product and service performance
meets customer expectations. It is the perception of the customer that the outcome of a
business transaction is equal to or greater than his/her expectation. Customer satisfaction
occurs when the acquisition of products and /or services provides a minimum negative
departure from expectations when compared with other acquisitions and when the
marginal utility of a transaction is equal to or greater than preceding acquisitions.
Customer satisfaction occurs when the perception of the reward from the purchase of
goods or services by the customer meets or exceeds his/her perceived sacrifice. The
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perception is a consequence of matching past purchase and consumption experience with
the current purchase.
Customer Service and Satisfaction:
When we talk about customer service and/or satisfaction, we talk about creativity.
Creativity allows us to handle or diffuse problems at hand or later on rather in the process
of conducting the everyday business. We talk about how, or what, does the organization
have to do to gain not only the sale but also the loyalty of the customer. We want to know
the payoff of the transaction both in the short and long term. We want to know what our
customers Want? We want to know if our customers are satisfied. Satisfaction, Of course,
means that what we delivered to a customer met the customer’s Approval. We want to
know if customers are delighted and willing to come
Back, and so on. Fleiss 2 and Feldman 3 present examples of that delightfulness in their
writings. Fleiss has written about Ben and Jerry’s ice cream and Feldman has discussed
excellence in a cab ride. As important as delightfulness is, some of us minimize it, or even
totally disregard it. At this point, we fail. Some of the issues that will guarantee failure in
sales, satisfaction, and loyalty are:
Employees must adhere to a rigid chain of command
Employees are closely supervised
Conflict—in whatever form—is not allowed
Rewards are based on carrot-and-stick principles
Wrong objectives are measure.
We must understand customer expectation levels concerning quality. We must also
understand the strategy for customer service quality, and next we must understand the
measurement and feedback cycles of Customer satisfaction.
The customer is the person or unit receiving the output of a process on the system. In fact,
it is worth emphasizing that a customer can be the immediate, intermediate, or ultimate
customer. Also, a customer may be a person or persons, or a process or processes.
Customer satisfaction, however, is when the customer is satisfied with a product/service
that meets the customer’s needs, wants, and expectations.
There are at least three levels of customer expectations about quality:
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Level 1. Expectations are very simple and take the form of assumptions, must have, or
take it for granted. For example, I expect the airline to be able to take off, fly to my
destination, and land safely. I expect to get the correct blood for my blood transfusion and
I expect the bank to deposit my money to my account and to keep a correct tally for me.
Level 2. Expectations are a step higher than that of level 1 and they require some form of
satisfaction through meeting the requirements and/or specifications. For example, I expect
to be treated courteously by all airline personnel. I went to the hospital expecting to have
my hernia repaired, to be in some pain after it was done, to be out on the same day, and to
receive a correct bill. And I went to the bank expecting the bank teller to be friendly,
informative, and helpful with my transactions.
Level 3. Expectations are much higher than for levels 1 and 2. Level 3 requires some kind
of delightfulness or a service that is so good that it attracts me to it. For example, an
airline gives passengers traveling coach class the same superior food service that other
airlines provide only for first-class passengers. In fact, I once took a flight where the flight
attendants actually baked
cookies for us right there on the plane. When I went to the hospital, I expected staff to
treat me with respect and they carefully explained things to me. But I was surprised when
they called me at home the next day to find out how I was doing. And at my house closing,
the bank officer, representing the bank holding my mortgage, not only treated me with
respect and answered all my questions about my new mortgage, but just before we shook
hands to close the deal, he gave me a housewarming gift.
Customer satisfaction surveys help to:
Improve customer, client, or employee loyalty.
React quickly to changes in the market.
Identify and capitalize on opportunities.
Beat the competition.
Retain or gain market share.
Increase revenue.
Reduce costs.
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A Study on Customer Satisfaction Towards HSBC Bank
1.1 STATEMENT OF THE PROBLEM:
The study attempts to study, Analyze and determine the customer satisfaction on HSBC
bank. The study helps to obtain suggestions for improvement of services and also helps for
finding out satisfaction level of consumer.
The comprehensive statement of the problem can be stated as “CUSTOMER
SATISFACTION ON HSBC BANK”.
1.2 OBJECTIVES OF THE STUDY
Primary Objective:
To analyze the customer satisfaction on HSBC bank services.
Secondary Objectives:
To study customer perception about HSBC BANK.
To identify and study the various ways of ensuring customer satisfaction adopted
by SBC BANK Vs HDFC & SBI.
To know the factors which influence customers to choose HSBC bank?
To find out the satisfaction level of the different types of customers.
To know the parameters influencing the customers.
To study the current image of HSBC bank and its Competitors.
To obtain the suggestions for improvement of the HSBC bank. .
1.3 SCOPE OF THE STUDY:
This study helps in understanding the satisfaction level of the customer about
HSBC bank in Bangalore city
It also helps the company to understand the level of customer satisfaction and
feedback from the customers regarding their services and sales of the products.
The data collected and interpreted will be useful for the company and the reader of
the project. Various findings, observations and valuable suggestions,
recommendations help the company to materialize its future plans.
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The research study also helps to find out the demand potential for HSBC bank.
1.4 RESEARCH METHODOLOGY
Data Collection Techniques:
This project consists of two parts.
The first part is a study of the banking industry, HSBC Bank using secondary data
sources. This secondary information has been sourced from the internet and from business
related magazines and newspapers.
The second part of the study has been done using an exploratory research process and a
structured questionnaire was developed for this purpose. For the collection of primary
data this was the only method used. The reason I used this method is because a need was
felt for the free influx of information about the products. Also this method allowed the use
of skills gained in class.
Sample Design:
The population considered for the purpose of the survey was people residing in Bangalore.
Sampling Technique Used:
Since the information required was not of a very technical nature and also looking at the
scope of the project and the extent of the target segment, the sampling technique employed
was Convenience Sampling. I administered the questionnaires.
Sample Size:
I have restricted the sample size to 50 respondents. This was done keeping in mind the
time constraints and the fact that I felt that this number would be enough to serve the
information needs required to show the trends.
1.5 LIMITATIONS OF THE STUDY
The study was confined to Bangalore city only
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The time constraint was that the respondents gave only limited time for the data
collection.
Due to limited time period and constrained working hours for most of the
respondents, the answers at times were vague.
The finding of this study was based on the assumptions that the respondents have
diverged true and honest information.
Sampling size is restricted to 50 respondents only.
The study also limited due to various constraints like time, manpower resources
and financial availability and also primary data.
Making accurate predictions relating to customer behavior is very difficult.
The views and responses of the respondents may change over a period of the time.
The bias of the respondents may have introduced errors in the survey findings.
2. DATA ANALYSIS & INTERPRETATION
TABLE-1
Table-1: Showing gender group of respondents.
GENDER GROUP NO. OF RESPONDENTS PERCENTAGE
Male 27 54%
Female 23 46%
Total 50 100%
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Analysis:
The above table shows that out of 100% respondents, 54% of the Male respondents and
46% of the Female respondents.
CHART-1
Chart-1: Showing gender group of respondents
MALE FEMALE42%
44%
46%
48%
50%
52%
54%
PERCENTAGE
PERCENTAGE
Interpretation:
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From the survey it is observed that majority of the respondents are Male that is 54%.
TABLE-2
Table-2: Showing Age group of the respondents.
Sl. No. Response No. of Respondents % of Respondents
1 20-30 6 12%
2 30 – 40 24 48%
3 40 – 50 13 26%
4 Above 50 7 14%
TOTAL 50 100%
Analysis:
From the above we observe that 6 respondent are from the age 20-30,
24 respondents are from the age of 30-40
13 respondents are from the age of 40-50
7 respondents are from the age of above 50
CHART-2
Chart-2: Showing Age group of the respondents.
Interpretation:
From the above we observe that 12% of respondent are from the age 20-30,
48% of the respondents are from the age of 30-40
26% of the respondents are from the age of 40-50
14% of the respondents are from the age of above 50
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TABLE-3
Table-3: Showing ANNUAL INCOME of respondents:
SI. No. Income(annual) No. Of
Respondents
% of Respondents
1 Up to 160000 13 26
2 160001 to 500000 35 70
3 Rs. 500001 to 800000 2 4
4 800001 and above 0 0
TOTAL 50 100
Analysis:
From the above table
13 respondents annual income is up to 1600000
35 respondents annual income is from 160001 to 500000
2 respondents annual income is from 500001 to 800000
0 respondent annual income is from 800000 and above.
Department of Management Studies, M.S.Engineering College. Bangalore Page 53
12%
48%
26%
14%
1 20-30 2 30 – 40
3 40 – 50 4 Above 50
A Study on Customer Satisfaction Towards HSBC Bank
CHART-3
Chart-3: Showing ANNUAL INCOME of respondents:
Up to 160000 160001 to 500000 500001 to 800000 800000 and above
Series 1 0.26 0.700000000000001 0.04 0
5%
15%
25%
35%
45%
55%
65%
Annual Income
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Interpretation
From the above table
26% of the respondents are annual income up to 1600000
70% of the respondents are annual income from 160001 to 500000
4% of the respondents are annual income from 500001 to 800000
0% of the respondents are annual income from 800000 and above.
TABLE-4
Table-4 Showing OCCUPATION of respondents:
SI. No. Response No. Of
Respondents
% of Respondents
1 Businessman 9 18
2 Professional 7 14
3 salaried person 26 52
4 Student 3 6
5 Other’s 5 10
TOTAL 50 100
Analysis:
From above graph 26 respondents from salaried persons, 9 respondents from businesses men, 7
respondents from professionals, 3 students and 5 others include housewives.
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CHART-4
Chart-4: Showing OCCUPATION of respondents:
Businessman Professional salaried person Student Other’s0%
10%
20%
30%
40%
50%
60%
Occupation
Interpretation:
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From above graph 52% of the respondents from salaried persons, 18% of the
respondents from businesses men, 14% of the respondents from professionals, 6%
are from students and 10% others include housewives.
TABLE-5
Table-5: Showing attributes compelled you to most open saving account in any bank
Attributes No. of Respondents % of Respondents
ATM cum DEBIT Cards 15 30%
Cheque Book 10 20%
Internet Banking/ Phone
Banking
6 12%
Working Hours 9 18%
Value Added Services 10 20%
TOTAL 50 100%
Analysis : The above tables showing out of 50 respondents, 15 choose the bank based on
the attribute of ATM and DEBIT CARDS, 10 respondents choose the bank on the attribute
of Cheque Book, 6 respondents choose the bank on the basis of INTERNET
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BANKING/PHONE BANKING, 9 respondents choose the bank on the attribute of
WORKING HOURS, 10 respondents choose on the attributes of VALUE ADDED
SERVICES.
CHART-5
Chart-5: Showing attributes compelled you to most open saving account in any bank.
20%
12%
18%20%
30%
cheque bookInternet Banking/ Phone Bank-ingWorking HoursValue Added Services ATM cum DEBIT Cards
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Interpretation: - The above pie chart states that 20% of the total sample choose the bank
on the attribute of Cheque Book, 12% of the respondents choose the bank on the attribute
of Internet Banking, 18% of the respondents choose the bank on the basis of Working
Hours, 20% of the respondents choose the bank on the basis of Value Added services,
30% of the total sample select the bank on the basis of ATM cum DEBIT Cards.
TABLE-6
Table-6: Showing respondents having their Bank Account in different Bank
Bank Name No. of Respondents % of Respondents
SBI 20 40%
HSBC Bank 11 22%
HDFC Bank 8 16%
Axis Bank 6 12%
Others 5 10%
TOTAL 50 100%
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Analysis : The above tables showing out of 50 respondents, 20 respondents are having
their bank account in SBI Bank, 11 respondents are having their bank account in HSBC
Bank, 8 respondents are having their bank account in HDFC Bank, 6 respondents are
having their bank account in Axis bank, and 5 respondents are having their bank account
in other Banks.
CHART-6
Chart-6: Showing respondents having their Bank Account in different Bank
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SBI HSBC Bank HDFC Bank Axis Bank Others
100% 0.4 0.22 0.16 0.12 0.1
3%
8%
13%
18%
23%
28%
33%
38%
43%Y-
Axis
Interpretation: The above bar graph showing out of 100%, 40% respondents are having
their bank account in SBI Bank, 22% respondents are having their bank account in HSBC
Bank, 16% respondents are having their bank account in HDFC Bank, 12% respondents
are having their bank account in Axis bank, and 10% respondents are having their bank
account in other Banks.
TABLE-7
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Table-7: Showing that type of account respondents having.
Account Type No. Of Respondents % of Respondents
Saving 20 40%
Current 5 10%
Fixed 15 30%
NRI 6 12%
Others 4 8%
Total 50 100%
Analysis : The above tables showing out of 50 respondents, 20 respondents are having
saving account, 5 respondents are having current account, 15 respondents are having fixed
bank account, 6 respondents are having their NRI account and 4 respondents are having
other type of bank account.
CHART-7
Chart-7: Showing that type of account respondents having.
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A Study on Customer Satisfaction Towards HSBC Bank
Saving Current Fixed NRI Others
Series 1 0.4 0.1 0.3 0.12 0.08
3%
8%
13%
18%
23%
28%
33%
38%
43%
Interpretation : The above graph showing out of 100% respondents, 40% of respondents
are having saving account, 10% of respondents are having current account, 30% of
respondents are having fixed bank account, 12% respondents are having their NRI account
and 8% of respondents are having other type of bank account.
TABLE-8
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A Study on Customer Satisfaction Towards HSBC Bank
Table-8: Shows the respondents response towards HSBC Bank whether it provides
better facilities than SBI and HDFC Bank.
Response No. Of Respondents % Of Response
YES 19 38%
NO 22 44%
Can’t Say 9 18%
TOTAL 50 100%
Analysis: The above table showing that out of 50 respondents, 19 respondents agrees that
HSBC Bank provides better facilities than the SBI and HDFC bank. 22 respondents don’t
agree that HSBC Bank provides better facilities than the SBI and HDFC bank and 9
respondents are not in a position to say anything about Banks.
CHART-8
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A Study on Customer Satisfaction Towards HSBC Bank
Chart-8: Shows the respondents response towards HSBC Bank whether it provides
better facilities than SBI and HDFC Bank.
YES38%
NO44%
Can't Say18%
Interpretation: The above pie chat that out of 100% population, 38% population agrees
that HSBC Bank provides better facilities than the SBI and HDFC bank. 44% population
doesn’t agree that HSBC Bank provides better facilities than the SBI and HDFC bank and
18% population is not in a position to say anything about Banks.
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TABLE-9
Table-9: Showing the rank of product offered by HSBC Bank than other with reference to respondents.
Very Good Good Moderate Less Poor
Rating 5 4 3 2 1
Factors No. of Respondents % of Response
Very Good 17 34%
Good 14 28%
Moderate 9 18%
Less 6 12%
Poor 4 8%
TOTAL 50 100%
Analysis: The above table shows that out of 50 respondents, 17 respondents says that
HSBC Bank products are Very Good than others, 14 respondents says Good, 9
respondents says the products are Moderate, 6 respondents says the products are less
satisfactory one and only 4 respondents says the products are poor.
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CHART-9
Chart-9: Showing the rank of product offered by HSBC Bank than other with
reference to respondents.
Very Good34%
Good28%
Moderate18%
Less12% Poor
8%
Ranking of Product
Interpretation: The above Pie graph shows that out of 100% population, 34% population
says that HSBC Bank products are Very Good than others, 28% population says good,
18% population says the products are Moderate, 12% population says the products are less
satisfactory one and only 8% population says the products are poor.
TABLE-10
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A Study on Customer Satisfaction Towards HSBC Bank
Table-10: Showing the number of points given by the respondents to HSBC Bank
based upon the service.
Factors/services Points given by Respondents % Of Response
Less formality 28 28%
Flexibility 43 43%
Less documentation 21 21%
Others 8 8%
TOTAL 100 100%
Analysis: The above table shows that out of 100 points, 28 points are given to the less
formality of service, 43 points are given to the flexibility, 21 points are given to the less
documentation and only 8 points are given to the other services.
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CHART-10
Chart-10: Showing the number of points given by the respondents to HSBC Bank
based upon the service.
28%
43%
21%
8%
PointsLess Formality Flexibility Less documentation Others
Interpretation: The above pie chart shows that out of 100%, 28% is given to the less
formality of service, 43% is given to the flexibility, 21% is given to the less
documentation and only 8% points are given to the other services.
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TABLE-11
Table-11: Shows that respondents rank to HSBC services.
Attributes Rating by Respondents % of Rating
Extremely Satisfied 12 12%
Satisfied 34 34%
Moderate 20 20%
Dissatisfied 26 26%
Extremely Dissatisfied 8 8%
TOTAL 100 100%
Analysis: The above table shows out of 100 points the respondent given rating according
to his satisfactory level, 12 points are given to Extremely Satisfied, 34 points are given to
satisfied attribute, 20 points are given to Moderate attribute, 26 points are given to
dissatisfied and 8 points are given to Extremely dissatisfied attribute.
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A Study on Customer Satisfaction Towards HSBC Bank
CHART-11
Chart-11 shows that respondents rank to HSBC services.
Extremely Satisfaction12%
Satisfaction34%
Moderate20%
Dissatisfaction26%
Extremely Dissatisfaction8%
Satisfaction
Interpretation: The above pie graph shows out of 100% the respondent given rating
according to his satisfactory level, 12% is given to Extremely Satisfied, 34% is given to
satisfied attribute, 20% is given to Moderate attribute, 26% is given to dissatisfied and 8%
is given to Extremely dissatisfied attribute.
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TABLE-12
Table-12: Shows the overall experience in HSBC Bank.
Ratings No. of Respondents % of Respondents
Excellent 6 12%
Good 25 50%
Average 9 18%
Bad 6 12%
Very bad 4 8%
Total 50 100%
Analysis:
From the above table overall experience of respondents with HSBC Bank
6 of the respondents had an excellent experience in HSBC Bank,
25 of the respondents had good experience in HSBC Bank,
9 of the respondents had Average experience in HSBC Bank
6 of the respondents felt remain neutral,
4 of the respondent’s bad experience in HSBC Bank
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CHART-12
Chart-12: Shows the overall experience in HSBC Bank.
Excellent Good Average Bad Very bad 0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Interpretations:
From the above chart overall experience of respondents with HSBC Bank
12% of the respondents had an excellent experience in HSBC Bank,
50% of the respondents had good experience in HSBC Bank,
18% of the respondents had Average experience in HSBC Bank
12% of the respondents felt remain neutral,
8% of the respondent’s bad experience in HSBC Bank
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TABLE-13
Table-13: Showing specific brand awareness about HSBC Bank among respondents.
Brand awareness No. of respondents Percentage
YES 43 86%
NO 7 14%
Total 50 100%
Analysis: The above tables showing out of 50 respondents, 43 respondents know about
HSBC Bank Only 7 respondents are not aware of it.
CHART- 13
Chart-13: Showing specific brand awareness about HSBC Bank among respondents.
86%
14%
YES
NO
Interpretation: - The above pie chart states that 86% of the total sample knows about
HSBC Bank. Only 14% of the total population does not know about HSBC Bank. From
the above interpretation it is clear that although HSBC Bank is a strong brand amongst the
financial investors, people of Bangalore-city do not know much about the company.
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TABLE-14
Table-14: Showing that respondents opinion about HSBC as a trustworthy Bank.
Opinion No. of respondents Percentage
Trustworthy 45 90%
Non Trustworthy 5 10%
Total 50 100%
Analysis: The above table showing that out of 50 respondents, 45 respondents trusts on
HSBC Bank and only 5 respondents does not trust on HSBC Bank.
CHART-14
Chart-14: Showing that respondent’s opinion about HSBC as a trustworthy Bank.
90%
10%
Trustworthy
Non Trustworthy
Interpretation: 90% of the respondents have a trust at HSBC Bank, 10% of the
respondents don’t have a trust at HSBC Bank.
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TABLE-15
Table-15: Showing that the respondents opinion about using sales promotional
activity.
Publicity No. of respondents Percentage
Yes 28 56%
No 22 44%
Total 50 100%
Analysis: the above table showing that out of 50 respondents, 28 respondents suggested
that bank has to use sales promotional activity.
CHART-15
Chart-15: Showing that the respondents opinion about using sales promotional
activity
56%
44%yes
no
Interpretation: The bank still needs a lot to be done as far as publicity is concerned. The
following chart depicts that 55% people says that the bank needs more publicity
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TABLE-16
Table-16: Showing that the respondents opinion about using suitable media by the
bank for advertisement.
Media No. of respondents Percentage
Television 24 48%
Radio 10 20%
Newspaper 12 24%
MYNL representative 4 8%
Total 50 100%
Analysis: the above table showing that out of 50 respondents, 24 respondents suggested
that television as an effective media for advertisement.
CHART-16
Chart-16: Showing that the respondents opinion about using suitable media by the
bank for advertisement.
48%
20%
24%
8%
Television
Radio
Newspaper
MNYL Representative
Interpretation: The most preferred media chosen by most of the people is television as
they more deeply come to know about the features of the product through it.
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3. FINDINGS AND SUGGESTIONS
3.1 Findings:
1) It was found that out of 50 respondents, 27 of them were male and 23 of them were
female.
2) Out of the 50 respondents interviewed it is found that majority of the respondents
were in the age group of 30-40 years.
3) Out of the 50 respondents interviewed it is found that 35 respondents annual
income is from 160001-500000.
4) From the study it is observed that 26 of the respondent’s occupation is salaried
person.
5) From the study it is observed that 20% of the respondents will open their saving
account based upon value added services given by the bank.
6) From the study it is observed that most of the respondents have their account in
SBI Bank.
7) From the study it is observed that 20of the respondents have saving type of
account.
8) Out of the 50 respondents interviewed it is found that 19 of the respondents are
agreeing that HSBC is providing better facilities.
9) From the study it is observed that 17of the respondents have rated very good for
the product offered by HSBC.
10) From the study it is observed that 43 points are given by the respondents towards
flexibity service of HSBC Bank.
11) From the study it is observed that 34% of the respondents are satisfied by the
service offered by HSBC Bank.
12) From the study it is observed that 25 respondents have good experience in HSBC
Bank.
13) From the study it is observed that majority of the respondents are aware of HSBC
Bank.
14) From the study it is observed that majority of the respondents agree that HSBC
Bank is a trust worthy bank.
15) From the study it is observed that 56% of the respondents says that the bank still
needs publicity.
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16) From the study it is observed that 48%of the respondents say’s that television is the
suitable media for the advertisement of HSBC Bank.
3.2 SUGGESTIONS
A. Best play in a buoyant environment Favorable macro, buoyant Market related
revenues and a benign environment for asset quality.
1) HSBC as a player focused on maintaining and /or improving Market share in key
business segments, particularly retail lending- Will, in our view, benefit immensely form a
positive operating Environment.
2.) Pricing power in consumer financing segment profitability against potential shocks.
3.) HSBC enjoys a dominant market position across customer Categories in retail
lending. The strong market position and robust Demand for consumer financing vests
significant pricing power With HSBC is believed either by allowing a hike in lending
rates, Negotiating higher subvention form manufacturers of cutting Distribution costs.
4.) Strong pricing power and a balance sheet that is significantly biased towards retail
lending buffers HSBC profitability from in the bank's funding cost.
5.) In line with consensus, we recommend buy HSBC for growth Reasons and not for the
relative valuation appeal. It is not so much about HSBC but about their respective
operating metrics and growth conditions. Market has rewarded both strategies: HSBC
broad-based strategy allows capturing value across the Value chain in a customer segment;
and HSBC like other large players in the private sector, enjoys favorable conditions
arising from a restrictive regulatory/policy Environment towards new entrants and foreign
banks and slow Pace of reforms for state-owned banks is believed.
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A Study on Customer Satisfaction Towards HSBC Bank
4.CONCLUSION:
Thus, HSBC has been able to use technology to provide value-added service to its
customers during the last few years. For HSBC, technology is an integral part of their
business. However, their overall progress could have been smoother but for certain
internal and extraneous factors and also a pressure on spread due to a competitive market
(Annual report, 2000 –01). E-banking has become a necessary survival weapon and is
fundamentally changing the banking industry worldwide. Today, the click of the mouse
offers customers banking services at a much lower cost and also empowers them with
unprecedented freedom in choosing vendors for their financial service needs. No country
today has a choice- whether to implement E-banking or not given the global and
competitive nature of the economy. HSBC have to upgrade and constantly think of new
innovative customized packages and services to remain competitive. The invasion of
banking by technology has created an information age and commoditization of banking
services. HSBC have come to realize that survival in the new e-economy depends on
delivering some or all of their banking services on the Internet while continuing to support
their traditional infrastructure. The rise of E-banking is redefining business relationships
and the most successful banks will be those that can truly strengthen their relationship
with their customers. Without any doubt, the international scope of E-banking provides
new growth perspectives and Internet business is a catalyst for new technologies and new
business processes.
Department of Management Studies, M.S.Engineering College. Bangalore Page 80