HDFC Bank

A Project Report OnA STUDY OF HDFC BANK SUBMITTED IN PARTIAL FULFILMENT OF MASTER OF BUSINESS ADMINISTRATION DEGREE MADURAI KAMRAJ UNIVERSITY, MADURAI SUBMITTED BY: NISAR HEMAL GOPAL MBA –II (FINANCE) Enrollment Number A9A7511826 THROUGH THE DIRECTOR DDE MADURAI KAMRAJ UNIVERSITY MADURAI- 625021 Batch 2008 - 2010 1 2ND Pg will be…. Admission order Xerox 2 CERTIFICATE I hereby certify that Mr. Nisar Hemal Gopal student of MBA (Finance) from M.K. University, Madurai has completed project work entitled as ‘A STUDY OF HDFC BANK ‘under my guidance. As per my knowledge this is his original work bases on available data and for partial fulfillment of MBA program. Date: 3 ACKNOWLEDGEMENT I take this opportunity to express my deep sense of gratitude. thanks and regards towards all of those who have directly or indirectly helped me in the successful completion of this project. Date: -10-8-2009 Place: . support and inspiration needed to prepare this report. Last but not the least I am indebted to my PARENTS & my WIFE who provided me their time.Mumbai Signature Nisar Hemal Gopal 4 . I am grateful to all my friends who have helped me in the successful completion of this project. ............. 1.2 MARKETING DEPARTMENT…………………… 3.2 LOANS……………………………………………..................6 PAYMENT SERVICES…………………………....3 FINANCE DEPARMENT………………………… 5 ......... 2.................6 BUSINESS SEGMENT……………………………......... 1.... DEPARMENT OF HDFC BANK………………………………… 3.4 INVESMENT&INSURANCE……………………. 1.......3 CARDS……………………………………………...... 2.... 3........... 2................. 2..5 INTEGRATED FINANCIAL SERVICES…………........ VISION AND BUSINESS STEATEGY….…... 1.4 AWARDS…………………………………………….. 2. 1..........3 BOARD OF DIRECTORS…………….. 2.......1 ACCOUNTS & DEPOSITES…………………….......1 HUMAN RESOURSE DEPARTMENT………....2 MISSION.7 PRIVATE BANKING……………………………… 3..1 HISTORY OF BANKING..... 1.… 2. INTRODUCTION...... PRODUCT OF HDFC BANK………………………………………. 2.....5 FOREX&TRADE SERVICE………………………..CONTENTS 1.... The bank of Venice was established in 1171 to help the government raise finance for a war. and with the level of political confidence and stability. The first record of minted metal coins was in Mesopotamia in about 2500B. Modern banking began in Venice. SWOT ANAYSIS…………………………………………………. BIBLIOGRAPHY…………………………………………… HISTORY OF BANKING Banking is nearly as old as civilization. instead of charging the merchants. which extended throughout Europe. The goldsmith realized that they could lend out some of the gold and silver that they had and charge interest. with many banks created to deal with increasing trade. 6 . The history of banking in each country runs in lines with the development of trade and industry. Asia and Africa. Cheques and printed paper money appeared in the 1700’s and 1800’s. as not all of the merchants would ask for the gold and silver back at the same time. The history of banking could be said to have started with the appearance of money. with the metal itself staying under lock and key. the first European banknotes. The word bank comes from the Italian word “ban co”. the goldsmiths paid them to deposit their gold and silver.4. in England merchant started to ask goldsmiths to hold gold and silver in their safes in return for a fee. in Sweden. because moneylenders worked on benches in market places. Eventually. At the same time.C. meaning bench. Receipts given to the Merchant were sometimes used to buy or sell. which was handwritten appeared in1661. 5. The ancient Romans developed an advanced banking system to serve their vast trade network. New technology transformed the banking industry in the 1900’s round the world.The bank of England was formed in 1694 to borrow money from the public for the government to finance the war of Augsburg against France. 7 . By 1709. banks merged into larger and fewer groups and expanded into other country. goldsmith were using bank of England notes of their own receipts. Banks fulfills the role of a financial intermediary. The Bank have introduced progressively more sophisticated versions of these services and have diversified introduction in numerable areas of activity not directly relating to this traditional trinity 8 . money transfer and making advances. This is what has lead to the very foundation of financial institution like banks. Taking deposits generates funds for lending and money transfer services are necessary for the attention of deposits. which is the profitable activity of the three. They have helped bring a draw of development on the world’s horizon and developing country like India is no exception. This means that it acts as a vehicle for moving finance from those who have surplus money to (however temporarily) those who have deficit. Without the intermediary of the banks both their depositors and their borrowers would have to contact each other directly.BANKING STRUCTURE IN INDIA: In today’s dynamic world banks are inevitable for the development of a country. Banks play a pivotal role in enhancing each and every sector. But a substantially high rate of interest was charged which made borrowing of money out of the reach of the majority of the people so there arose a need for a financial intermediate. In everyday branch terms the banks channel funds from depositors whose accounts are in credit to borrowers who are in debit. The Bank have developed their roles to such an extent that a direct contact between the depositors and borrowers in now known as disintermediation. the objective being to lend money. Before few decades there existed some influential people who used to land money. Those three are closely related to each other. This can and does happen of course. Banking industry has always revolved around the traditional function of taking deposits. State Bank of India and its Subsidiaries Other Nationalized Banks Regional Rural Banks 9 . ICICI etc. Societies Commercial Banks Indian Foreign Public Sector Banks Private Sector Banks HDFC.INDIAN BANKING SYSTEM Reserve Bank of India Schedule Banks Non-Schedule Banks State co-op Banks Commercial Banks Central co-op Banks and Primary Cr. 10 . Economy. Thus the whole of the banking system in the country has undergone a radical change. Let us see how banking has evolved in the past 57 years of independence. They mistakenly believed the technology would lead to retrenchment and eventually the marginalization of unions. while bank management stagnated. complaints increased and bank management was unable to item the rot. Slowly the unions grew in strength. the changes have been swift. from licensing to integration with Global Economics.INDIAN BANKING INDUSTRY ANALYSIS: The banking scenario in India has been changing at fast pace from being just the borrowers and lenders traditionally. In the meantime. All most all the sector operating in the economy was affected and banking sector is no exception to this. technology was becoming a global phenomenon lacking a vision of the future and the banks erred badly in opposing the technology up gradation of banks. from planned economy to market. After independence in 1947 and proclamation in 1950 the country set about drawing its road map for the future public ownership of banks was seen inevitable and SBI was created in 1955 to spearhead the expansion of banking into rural India and speed up the process of magnetization. The casualty was to the customer service declined. the focus has shifted to more differentiated and customized product/service provider from regulation to liberalization in the year 1991. Political compulsion’s brought about nationalization of bank in 1969 and lobbying by bank employees and their unions added to the list of nationalized banks a few years later. But the prevailing accounting practices unable banks to dodge the issue. It is increasingly becoming clear that the state ownership in bank is no longer sustainable. Assets classification and loan loss provisioning were put in place and capital adequacy ratio become mandatory. INDUSIND BANK LTD 11. PUNJAB NATOINAL BANK LTD 5. BANK OF BARODA LTD 6. HDFC BANK LTD 2. The amendment of banking regulation act in 1993 saw the entry of new private sector banks and foreign banks. Norms or income Recognition. MAJOR PLAYER IN INDIA 1.The problem faced by the banking industry soon surfaced in their balance sheets. AXIS BANK LTD 8. IDBI BANK LTD 10. The cumulative impact of all these changes has been on the concept of state ownership in banks. STATE BANK OF INDIA LTD 4. ICICI BANK LTD 3. FEDERAL BANK LTD 7. The rules of the game under which banks operated changed in 1993. ING VYSYA BANK LTD 9. YES BANK LTD 11 . INTRODUCTION INTRODUCTION 12 . Today. with its registered office in Mumbai. With its experience in the financial markets. The Bank has a network of 1412 branches and 3295 automated teller machines (ATMs) in 528 cities and total employees are 52687. HDFC Bank Limited (the Bank) is an India-based banking company engaged in providing a range of banking and financial services. we are proud to say that we are well on our way towards that goal. India. as part of the RBI's liberalization of the Indian Banking Industry in 1994. The bank was of 'HDFC Bank Limited'.” We realized that only a single minded focus on product quality and service excellence would help us get there. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. HDFC Bank began operations in 1995 with a simple mission: to be a “World Class Indian Bank. including commercial banking and treasury operations. HDFC is India’s premier housing finance company and enjoys an impeccable track record in India as well as in international markets.The Housing Development Finance Corporation Limited (HDFC) was amongst first the to receive an ‘in principle' approval from the Reserve Bank of India (RBI) to incorporated in August 1994 in the name set up a bank in the private sector. large shareholder base and unique consumer franchise. Its outstanding loan portfolio covers well over a million dwelling units. Since its inception in 1977. a strong market reputation. HDFC was ideally positioned to promote a bank in the Indian environment. 13 . the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader in mortgages. BRANCHES (NOS) 1412 1725 2009 2010 ATMs (Nos.) 4232 3295 2009 2010 SNAPSHOT Company Background Industry Business Group Incorporation Date Public Issue Date Face Value Company/Business Registration No Key Officials CEO Finance - Banks - Private Sector. HDFC Group 31/12/1994 31/12/1995 10.0000 INE040A01018 Aditya Puri HISTORY OF HDFC BANK FOUNDERS 14 MR.HASMUKHBHAI PAREKH If ever there was a man with a mission it was Hasmukhbhai Parekh, our Founder and ChairmanEmeritus, who left this earthly abode on November 18, 994. Born in a traditional banking family in Surat, Gujarat, Mr. Parekh started his financial career at Harkisandass Lukhmidass - a leading stock broking firm. The firm closed down in the late seventies, but, long before that, he went on to become a towering figure on the Indian financial scene. In 1956 he began his lifelong financial affair with the economic world, as General Manager of the newly-formed Industrial Credit and Investment Corporation of India (ICICI). He rose to become Chairman and continued so till his retirement in 1972. At the ripe age of 60, Hasmukhbhai started his second dynamic life, even more illustrious than his first. His vision for mortgage finance for housing, gave birth to the Housing Development Finance Corporation - it was a trend-setter for housing finance in the whole Asian continent. He was a true development banker. His building up HDFC without any government assistance, is itself a brilliant chapter in financial history. His wisdom and warmth drew people from all walks of life to him, for advice, guidance and inspiration. A soft spoken man of few words, Mr. Parekh nevertheless held strong and definite views with a quiet conviction. He was always concerned with building bridges, improving and encouraging communication between people. 15 He was also a writer in his own right. There are over 200 published articles by him, full of incisive comments on finance and economics. In 1953 he brought out a volume called: The Bombay Money Market. It detailed the intricate working of the Indian money market. His works in Gujarati - Hirane Patro, Hirane Vadhu Patro occupy pride of place in Gujarati literature. In 1992, the Government of India honoured him with the Padma Bhushan Award. The London School of Economics & Political Science conferred on him an Honorary Fellowship. But there was much more to the man than his financial genius. In his own unassuming way, Hasmukhbhai devoted all his life to raising resources for philanthropic causes. He was one of the Founder Members of the Centre for Advancement of Philanthropy, and its Chairman till 1993. He took active interest in the Bombay Community Public Trust, designed specifically to serve the needs of the city's underprivileged citizens. When Mr. Deepak Parekh took over as Chairman from Hasmukhbhai, he said: "Taking over from H.T. Parekh is a formidable task; his vision. brought about not only an institution, but an entire concept which has proved itself to be of lasting importance." In his last years, developments in the financial sector brought him some measure of satisfaction. Says ICICI Chairman, N. Vaghul: "The most gratifying aspect about his life is that values he cherished all his life, came into reality in the last years. opening up the financial sector, and deregulation of lending rates were issues he stood for all his life, and this happened before he passed away." Farewell dear Hasmukhbhai! All of us will miss not only H.T. Parekh the financial wizard, but much more so, the man. The only and best tribute we can pay to such an individual is to try and follow in his footsteps, keeping in mind his high ideals and philanthropic outlook. MR. DEEPAK PAREKH 16 He is also a non-executive. Deepak Parekh has won several awards including Businessman of the Year 1996 by Business India and the JRD Tata Corporate Leadership Award by All India Management Association (AIMA). the country’s leading housing finance company. A chartered accountant. Deepak Parekh joined HDFC in 1978. He was also Chairman of the Expert Committee constituted by the Ministry of Power to look into the reform efforts in the power sector. A pioneer in mortgage finance. independent Director of SingTel. He is instrumental in making the HDFC a premier housing finance institution in the country.Deepak Parekh is the Chairman of HDFC. he worked with Grindlays Bank and also Chase Manhattan Bank as its assistant representative for South Asia. which was tasked to compare the level of adherence to international standards in India with that in other countries. He was the first recipient of the Qimpro Platinum 17 . he has enabled scores of Indian middle class people owning their houses or apartments through affordable loans. Hindustan Lever. formed to recommend measures for strengthening the Unit Scheme – 1964. He was promoted as its Managing Director in 1985 and appointed its Chairman in 1993. Deepak Parekh began his career with Ernst & Ernst Management Consultancy Services in New York. Mahindra & Mahindra and Indian Hotels Company. He is also the Non-Executive Chairman of Glaxo India Ltd & Burroughs Wellcome (India) Ltd and on the Board of Castrol BP India. a Government of India enterprise for infrastructure projects in 1997. Deepak Parekh has been a member of various Committees set up by the Government of India. After returning to India. The Reserve Bank of India appointed him Chairman of the Advisory Group for Securities Market Regulation. Siemens Ltd. He was appointed Chairman of the high level expert committee. Deepak Parekh is also the Non-Executive Chairman of Infrastructure Development Finance Company Ltd (IDFC). with its registered office in Mumbai. MISSION I. HISTORY HDFC BANK LTD was incorporated in August 1994 in the name of 'HDFC Bank Limited’.Award for Quality for his contributions to the services sector and the youngest recipient of the prestigious Corporate Award for Life Time Achievement by the Economic Times. Since its inception in 1977. HDFC was ideally positioned to promote a bank in the Indian environment In a milestone transaction in the Indian banking industry. India. HDFC BANK LTD was amongst the first to set up a bank in the private sector. With its experience in the financial markets. The bank has grown consistently and is now amongst the leading players in the industry . HDFC is India's premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Its outstanding loan portfolio covers well over a million dwelling units. effective February 26. World Class Indian Bank 18 . the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader in mortgages. with its registered office in Mumbai. large shareholder base and unique consumer franchise.. Times Bank was merged with HDFC Bank Ltd. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. a strong market reputation. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. The bank was incorporated on 30th August 1994 in the name of ‘HDFC Bank Limited’. 2000. He was also conferred Padma Bhushan by the Government of India. It commenced operations as a Scheduled Commercial Bank on 16th January 1995. service levels. HDFC Bank’s business philosophy is based on four core values such as:1. Benchmarking against international standards. BUSINESS STRATEGY I. IV. technology. Increasing market share in India’s expanding banking Delivering high quality customer service 19 . To build sound customer franchises across distinct businesses Best practices in terms of product offerings. The objective of the HDFC Bank is to provide its target market customers a full range of financial products and banking services. 3. The HDFC Bank plus and the investment advisory services programs have been designed keeping in mind needs of customers who seeks distinct financial solutions. 2. risk management and audit & compliance VISION STATEMENT OF HDFC BANK The HDFC Bank is committed to maintain the highest level of ethical standards.II. information and advice on various investment avenues. Product leadership. II. III. professional integrity and regulatory compliance. Operational excellence. Customer Focus. People. giving the customer a one-step window for all his/her requirements. 4. Banking Services YEAR 2010 IDRBT Technology 2009 Awards ACI Excellence Awards 2010 20 . Pandit Palande DESIGNATIO N Chairman Managing Director Executive Director Executive Director Director Director Director Director Director Director Director Awards and Achievements . Maintaining current high standards for asset quality through disciplined credit risk management Develop innovative products and services that attract targeted customers and address inefficiencies in the Indian financial sector. Keki M. Jagdish Capoor Mr. C M Vasudev Mr. Harish Engineer Mr. Aditya Puri Mr. Arvind Pande Mrs.III. IV. BOARD OF DIRECTORS PERSON Mr. Renu Karnad Mr. Paresh Sukthankar Mr. Gautam Divan Dr. Mistry Mr. Ashim Samanta Mr. Ernst Youn Survey 2009-10 Asian Banker Excellence Awards 2009 The Asset Triple A Awards Euromoney Private Banking and Wealth Management Poll 2010 Financial Insights Innovation Awards 2010 Global Finance Award 2 Banking Technology Awards 2009 SPJIMR Marketing Impact Awards (SMIA) 2010 Business Today Best Employer 21 .Avaya Global Connect 2010 Financial Express . Survey YEAR-2009 EUROMONEY AWARDS 2009 Economic Times Brand Equity & Nielsen Research annual survey 2009 Asia Money 2009 Awards IBA Banking Technology Awards 2009 Global Finance Award IDRBT Banking Technology Excellence Award 2008 Asian Banker Excellence in Retail Financial Services 'Asian Banker Best Retail Bank in India Award 2009 ' Most Trusted Brand .Runner up' 'Best Trade Finance Bank in India for 2009 'Best IT Governance and Value Delivery' 22 .Runner Up 'BEST BANK IN INDIA' 'Best Domestic Bank in India' 'Best IT Governance Award . LTD.INTEGRATED FINANCIAL SERVICES SECURITISATION HDFC CHUBB GENERAL INSURANCE CO. Future Activities 23 DISTRIBUTION . trade services. The bank has three key business segments: WHOLESALE BANKING SERVICES: The Bank's target market ranges from large. For these customers. which combine cash management services with vendor and distributor finance for facilitating superior supply chain management for its corporate customers. transactional services. The bank is also a leading provider of structured solutions.BUSINESS SEGMENT HDFC Bank offers a wide range of commercial and transactional banking services and treasury products to wholesale and retail customers. blue-chip manufacturing companies in the Indian corporate to small & mid-sized corporate and agri-based businesses. the Bank provides a wide range of commercial and transactional banking services. etc. including working capital finance. cash management. Based on its superior product delivery / service levels and strong customer 24 . giving the customer a one-stop window for all his/her banking requirements. mutual funds. Personal Loans and Loans for Two-wheelers. The Bank launched its credit card business in late 2001. The Bank is also one of the leading players in the "merchant acquiring" business with over 50. providing customers the facility to hold their investments in electronic form. RETAIL BANKING SERVICES: The objective of the Retail Bank is to provide its target market customers a full range of financial products and banking services. It is also a leading provider of Depository Participant (DP) services for retail customers. 2005. HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (VISA Electron) and issues the Master card Maestro debit card as well.orientation. TREASURY: 25 . Phone Banking. as well as through alternative delivery channels like ATMs.000 Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant establishments. information and advice on various investment avenues. Net Banking and Mobile Banking. By September 30. the HDFC Bank Plus and the Investment Advisory Services programs have been designed keeping in mind needs of customers who seek distinct financial solutions. stock exchange members and banks. the bank had a total card base (debit and credit cards) of 5. The products are backed by world-class service and delivered to the customers through the growing branch network.2 million cards. Loans against marketable securities. The Bank also has a wide array of retail loan products including Auto Loans. companies from the domestic business houses and prime public sector companies. The HDFC Bank Preferred program for high net worth individuals. the Bank has made significant inroads into the banking consortia of a number of leading Indian corporate including multinationals. It is recognized as a leading provider of cash management and transactional banking solutions to corporate customers. Foreign Exchange and Derivatives. The Treasury business is responsible for managing the returns and market risk on this investment portfolio. These and fine pricing on various treasury products are provided through the bank's Treasury team. 26 . Local Currency Money Market & Debt Securities.Within this business. and Equities. the bank is required to hold 25% of its deposits in government securities. advice and product structures. the bank has three main product areas . To comply with statutory reserve requirements. With the liberalization of the financial markets in India. corporate need more sophisticated risk management information. PRODUCT OF HDFC BANK PERSONAL BANKING ACCOUNT & DEPOSITS SERVICE 27 . Safe deposits lockers. Phone Banking and Mobile Banking. the efforts are rewarding. but also can recommend products that can augment your planning for the future. Now you can get access to some of the finest banking facilities with HDFC Bank's 28 . Current accounts. Whether you're employed in a company and need a simple Savings account or run your own business and require a robust banking partner. There some saving accounts like: - Regular Saving Account: An easy-to-operate savings account that allows you to issue cheques. bank have confident that person will find the perfect banking solution. HDFC Bank not only has the perfect solution for you. Savings Accounts These accounts are primarily meant to inculcate a sense of saving for the future. Demat account. accumulating funds over a period of time. Check up on your balances from the comfort of your home or office through Net Banking. Saving plus Account Introducing the best banking option for you with HDFC Bank Savings plus Account.Banking should be effortless. Whatever person’s occupation. No matter what a customer's need and occupational status. we have a range of solutions that are second to none. With HDFC Bank. It includes these services: • • • • • Saving accounts. Fix deposits. There are 1977 ATM centers across the country. draw Demand Drafts and withdraw cash. If you need money urgently then you can take money from the ATM machine. bank has introduced the 'No Frills' Savings Account. No frills Account In an effort to make banking simpler and more accessible for customers. loaded with maximum benefits to make your banking experience a pleasure.000/. they present an account especially dedicated to customer.000/-. In this customer can put Zero Initial Pay-in and a Zero Balance account Institutional saving accounts A specially designed account that offers twin benefits of a savings as well as a current account. Mobile banking free of cost. Senior Citizen Account HDFC Bank appreciates your needs and endeavors. By maintaining an average quarterly balance of just Rs. 10. 25. Customer’s funds continue to earn you interest while he enjoys 29 . Saving Max Account Welcome to a world of convenience.Savings plus Account. which like a dutiful child will help you fulfill your needs in the best manner possible. Presenting Savings Max account. Customer can even avail of services like Net Banking. which offers customer all the basic banking facilities. which is why. All you have to do is maintain an Average Quarterly Balance of Rs.you get a host of premium services from HDFC Bank absolutely free. hassle-free banking & a host of other features. All this and more in a Zero Balance account. Salary Accounts In this account customer can get salary from where he/she doing such job and organization or company at where the customer of the bank in doing job deposit their salary in to the salary account a person can get salary. There are various kinds of saving accounts in the HDFC Bank like: • • • • • • • Pay roll account. Classic salary account. Regular salary account. Premium salary account. Defense salary account. No frills salary account. Reimbursement salary account. Kid’s advantage account Start saving for your child today and secure his/her future a sentence tells by the Hdfc bank. Open a Savings Account and transfer money every month into customer’s Kids Advantage Account and watch the savings grow as customer’s child grows. The accumulated savings in the Kids Advantage Account can over the years help in meeting customer child's needs. Main features and benefits of this account are as follow:For their Growing Needs 30 • Free Education Insurance cover of Rs. 1, 00,000/- in the event of death of the parent / guardian through vehicular accident by road, rail or air to safeguard the future of your child. • ATM/International Debit Card will be issued for children between 7-18 years of age in the child's name with your permission. The amount your child is able to withdraw is Rs. 2,500/- at ATMs or spend Rs. 2,500/- at merchant locations. • • • • • Free cash withdrawals on any other Bank's ATM* 1 free Personalised cheque book for your child. Monitor the transactions of your child's account with the free quarterly physical statement of account or free monthly Email Statement of account Free Net Banking for you to monitor your child's account. Free SMS/Email alerts informing you about the account transactions. For their Secured Future • Standing Instruction to transfer any amount from your account to your Kid's Advantage Account every month (Minimum value = Rs. 1,000/- & Minimum tenure = 1 year) (Mandatory). • Once the balance in the Kid's Advantage Account reaches/exceeds Rs. 35,000/-, the amount in excess of Rs. 25,000/- will automatically be transferred into a Fixed Deposit for 1 year 1 day, in your child's name, by signing in for our sweep-out facility. • You can also opt for systematic investments in mutual funds from the Kid's Advantage Account in your child's name. Current accounts HDFC Bank Current Account gives the power of inter-city banking with a single account and access to more than cities. From special cheques that get treated at par with local ones in any city where branch, faster collection of outstation cheques (payable at branch locations), free account to account funds transfer between HDFC Bank accounts to Free inter-city clearing of up to 100 lakhs per month, bank’s priority services have become the benchmark for banking efficiency. 31 Now, with an HDFC Bank Current Account, experience the freedom of multi-city banking. Person can have the power of multi-location access to his account from any of our 761 branches in 327 cities. Not only that, he can do most of his banking transactions from the comfort of his office or home without stepping out. There are various kinds of current account in this bank like: - Plus current account HDFC Bank plus Current Account gives the power of inter-city banking with a single account and access to more than cities. Plus Current Account requires maintaining an average quarterly balance of Rs. 100,000. Trade current account In today's changing business requirements, you need to transfer funds across cities, and time is of the essence. HDFC Bank Trade Current Account gives power of intercity banking with a single account. From special cheques that get treated at par with local ones in any city where bank have a branch, to free account to account funds transfer between HDFC Bank accounts, to free inter-city clearing of up to 50 lacs per month, bank’s priority services have become the benchmark for banking efficiency. Trade Current Account requires maintaining an average quarterly balance of Rs. 40,000. Premium current account 32 10. first request to company to open up a Salary Account for particular person). offers Payable-At-Par cheque book facility & FREE inter-city clearing transactions across our network up to Rs. 33 . customer can access account anytime. To open this account a person has to follow these processes: Procure an Account Opening Document (AOD) from HDFC Bank. Regular Current Account requires to maintain an average quarterly balance of only Rs.Business needs a partner who can manage finances while concentrate on growing business. and through direct access channels . It also facilitates FREE NEFT transactions & FREE RTGS collections for faster collections in account.a hassle-free account that allows deposit the reimbursements receive from company/organization on a monthly basis.000. 25. and access to a multitude of ATM's. pay using payable at par cheques or deposit cheque at any HDFC bank branch. customer can keep track of all transactions anytime. mobile. With the HDFC Bank Regular Current Account. A Current Account with the benefits of accessing account from a large network of branches. Internet and through the ATM.25 Lacs per month.the phone. With a vast network of branches in cities all over the country. Form this account customer can avail benefits of inter-city banking account that requires an average quarterly balance of only Rs. (If person has just joined. no more receipts to keep track of . Regular current account A Current account is ideal for carrying out day-to-day business transactions. anywhere.000. Reimbursement Current Account No more paperwork. With HDFC Bank Flexi Current Account Cash Deposit and Anywhere Transaction limits are a multiple of the balance you maintain in Current Account. What’s more. Flexi current account Tired of static transaction limits during peak seasons? HDFC Bank Flexi Current Account is the answer to changing banking needs during peak seasons. Open account with an initial amount as per the following-US Dollar = 250 Great Britain Pound = 200 Euro = 250 and maintain an Average Quarterly Balance of the same amount. during peak seasons. Request company to directly credit cash payments to the Reimbursement Account. during lean seasons. customer get the benefit of higher transaction limits due to the higher average balances maintained in account. 34 . Great Britain Pound or Euro. So. Salary Account as well as new Reimbursement Account. To open this accounts a person as to follow this process: Choose the currency in which person wish to operate. open Resident Foreign Currency Domestic Account and manage foreign currency efficiently. RFC – Domestic Account Full name of this account is Resident foreign currency account.Mention Salary Account number and Debit Card number on the AOD so that Debit card can be linked to both. person need not worry about maintaining huge balances to enjoy high transaction limits. Person can choose to set up your account either in US Dollar. Have you accumulated foreign currency from traveling abroad frequently? Received gifts from relatives in foreign currency? Or earned it by any other means as approved by the Reserve Bank of India? If so. On maintaining an average quarterly balance of Rs. for this purpose he has a better chance to deposits money in to the fix deposit. With the Apex current account. Unlimited. People can invest his/her money into either in security market or gold or mutual fund or into a fix deposits.000. Max current account Maximum benefits and minimum hassles for customer with Max Current Account with a Rs. An alternative to simply applying for loans. Features like maximum free transaction limits including other beneficial features on this current account truly enhances business potential to the Maximum. thus fulfilling needs as well as keeping savings secure. Apex current account The top position is always the desirable position. So. Flexi Current Account requires to maintain a minimum Average Monthly Balance (AMB) of just Rs. 5 lacs average quarterly balance requirement. 35 . People always go to that way where he/she can get more benefits and minimum risks. Fix Deposits Long-term investments form the chunk of everybody's future plans. anywhere Banking experience at the APEX is reserved for person who joints this. bank present to world of privileges that helps business expand and grow. fixed deposits allow to borrow from own funds for a limited period.which person anyway may not need. this account makes sure person make the most of every business opportunities coming his way. free. take business to a new high. 10 lacs. 75. Link Fixed Deposit to Savings or Current Account and use it to fall back on in case of emergencies.00. What's more NO PENALTY if withdraw part of the FD in times of need. and still take advantage of your Fixed Deposits? Then what you need is a Sweep-In Facility on savings account. Security and High Returns all bundled into one offering. Regular fix deposit As per the rules and regulation of the bank a person can deposit their money in to a fix deposit in the bank and can get the benefits of these facilities. Since deposits are broken down in units of Re 1/-. A deficit in Savings or Current Account is taken care of by using up an exact value from Fixed Deposit.75% on HDFC Bank Fixed Deposit with an additional 0. Five year tax saving fix deposit In 2006. now is the time to invest money in HDFC bank Fixed Deposit. 36 . it was announced for the first time that Bank fixed deposits booked by an Individual/HUF for 5 years & up to Rs.50% for Senior Citizens. Avail of an overdraft facility of up to 75% of the value of his or her Fixed Deposit. Get up to 9.000/. customer will lose interest only for the actual amount that has been withdrawn.will be allowed exemption under Sec 80C of the Income Tax Act. Supper saver facility Customer can enjoy a high rate of interest along with the liquidity of a Savings Account by opting for a Super Saver Facility on his or her savings account.If people believe in long-term investments and wish to earn higher interests on his/her savings. Sweep-in facility Do you wish to avoid taking overdrafts. Flexibility. 1.1961 subject to necessary declarations taken from the Customer. bank’s lockers ensure the safe keeping of valuables. So to avoid faulty processes demat account is really most important for the share market and for the safety of shares it is most important. i. trusts. clubs. HDFC BANK is one of the leading Depository Participant (DP) in the country with over 8 Lac Demat accounts. societies.e. Located at select branches in cities all over the country. etc may hire a locker.Demat Account Nowadays share market is becoming is the main occupation of the person. Small. 37 . Medium. over a period of time. associations. Lockers available in various sizes. Safe Deposit Lockers A Safe Deposit Locker with HDFC Bank is the solution to person’s fear. without the hassle of handling physical documents that get mutilated or lost in transit. Large and Extra Large with varying rents. HDFC BANK is Depository participant both with -National Securities Depositories Limited (NSDL) and Central Depository Services Limited (CDSL). firms. Eligibility An individual (not minor). HDFC Bank Demat services offers a secure and convenient way to keep track of securities and investments. Advantages of safe deposit locker in HDFC bank • • Wide Availability. limited company. In the case of a sole hirer of a safe deposit locker. which depends on the size of the locker and the centre in which the branch is located. But some time a person has not cash 38 . Nomination facility is available to individual hirer of Safe Deposit Locker.• • • Lockers are rented out for a minimum period of one year. Nomination for Safe Deposit Locker • • • • The Lockers and their contents can be nominated to people near and dear to you. Terms & Conditions • • • • For obtaining a Locker at HDFC Bank you must be an account holder with Bank. Rent is payable in advance. Just open an account and get the locker facility. The Locker holder is permitted to add or delete names from the list of persons who can operate the Locker and can have access to it. Loss of Key is to be immediately informed to the concerned Branch. There is a nominal annual charge. the nomination shall be made by a person lawfully entitled to act on behalf of the minor. No deposits are required to avail a locker. nomination can be made in favor of only one individual. Lockers can be allotted individually as well as jointly. LOAN In today’s competitive world every thing happens only with the help of money or through the money every person need money. Where the safe deposit locker is hired in the name of a minor. Lone dose not mean that only lower class person needs it but also upper class person it is needed. a dedicated team of experts and a complete package to meet all housing finance needs. here one solution for that person this is personal loan. Home loan HDFC Bank brings HDFC home loans to doorstep. Personal loan A person has so many dreams but some time due to scarcity of money a dream can’t be satisfy.on hand at that time he needs lone either from any friend or from any financial institute. It can be any thing either a dream of vacation or son/daughter’s admission to college or any wedding. As per the requirement of the every person there are much type of loans are there in the HDFC bank. But 39 . As person ordered in the hotel for tea or coffee and it is immediately came fast. same over here any person want to get a personal loan with the nominal documents he can get the loan. So. time value is becoming more important so to reach at the destination of any business related occasion or for a boy to reach college or any where at the fix time there are so many requirement of vehicles. From this he/she can fulfill their needs or requirement. help people realize dream. so personal loan can be helpful in this entire requirement. With over 30 years of experience. Vehicles loan Nowadays the life is being so fast. HDFC Home Loans. So. as per the requirement of the person there are these types of loans are available this are at the chip rate and hassel free from more documentation and other procedure. documentation is minimal and approval is quick. Used car loan. With this a customer can get free additional services like free personalized cheque book. free international debit card. The procedure is simple. And also terms and condition are different as per the requirement. School admission or also in the family holiday. The procedure is simple. Express loan plus Bank offer Express Loans Plus at person Doorstep to help fulfill all his/her needs. It is helpful to person in repairing of house. person can get an instant loan against gold jewellery and ornaments.every people have no capacity to purchase vehicles with cash so for that here in the HDFC bank vehicles loan is available. Commercial vehicle loan. Gold loan With HDFC Bank's Gold Loan. and free net banking phone banking services. Educational loan 40 . Tractor loan (for agree culture business). documentation is minimal and approval is quick. Types of vehicles loan: • • • • • Two wheeler loans. New car loan. There are many types of vehicles loan. A person can get 70% loan on the value of the gold jewellery and ornaments. Thus as per the need of different people there are vehicle loans available. And commercial businessman can get the benefits of the commercial vehicles loans. There is also availability of the overdraft on the gold jewellery. KVP. and fund his child's education and much more. plan a dream wedding. NSC. while still retaining ownership. Person can now take a loan against residential or commercial property. Gold Exchange Traded Fund(ETF). Loan against property HDFC Bank brings Loan Against Property (LAP). US64 Bonds. UTI Bonds (ARS & US64 Bonds) and Gold Deposit Certificates. NSC. person can get an overdraft against securities like Equity Shares. Loans available for short duration/ job oriented courses also. Debt. He can depend on bank to meet all his business requirements even to purchase a new shop or office for business. and KVP. dividends and bonuses Loan available to NRIs against Shares. NABARD's Bhavishya Nirman Bonds.Nowadays important of education becoming very high. As it important becoming high it is becoming costly. And the best part is that he can continue to enjoy all his shareholder benefits such as rights. Debt. Loan against security With HDFC Bank's Loan against Securities. It is released as per fee schedules of institutes. A person can get loan up to 10 lacs to study in India and 20 lacs if he wants to study in abroad. Insurance Policies. Policies issued by LIC & Select Private Insurance Companies. Mutual Fund Units(Equity. to expand his business. Mutual Funds (equity. FMPs). So in the higher education some time people can not effort a high price at a same time. Loan available up to tenure of 7 years including moratorium period. Loan to purchase Commercial Property (LCP) is a specially designed 41 . So. FMPs). Exclusive Telegraphic Transfer facility available for courses abroad. there is education loan is also available for the student. Loans disbursed directly to the educational institution. These are loans services providing by HDFC bank which are very hassle free and really benefits for most of customer and most of customer are satisfied by the loan services providing by the bank. Value plus Credit Card. Credit cards A person wants many things like. Bank ranges of Cards help to meet financial objectives.product to help person expand his business without reducing the capital from his business. If there's something person has always wanted. or budgeting his expenditure. If a person wanted fulfills his wants he can get benefits from the HDFC bank’s credit cards facilities. conducting cashless shopping. a trip to Bali. a diamond ring for wife's dreams. Some dreams can't wait. he will find a card that suits him. Health Plus Credit Card. So whether persons are looking to add to his buying power. Different types of credit • • • • Classic cards Silver Credit Card. 42 . CARD SERVICES In today’s competitive and fast time card services providing by the banks are really very important to every person and every business needs or to take meal in to the hotel or to purchase jewellery from the jewellery shops cards are playing good role in the banking sectors. Specialized card Easy Shop International Business Debit Card. Easy Shop NRO Debit Card. Premium card Easy shop gold Debit card. Prepaid Cards have been tailored to answer travel and gifting needs. Types of debit card: • • • • • • • • • Classic card Easy shop international Debit card. Prepaid card Besides offering convenience. Easy Shop Woman's Advantage Debit Card. Kisan Card.• • • • • • • • • Premium Cards: Gold Credit Card Titanium Credit Card Woman's Gold Card Platinum Plus Credit Card Visa Signature Credit Card World MasterCard Commercial Cards Corporate Credit Card Debit card HDFC Bank Debit Cards give person complete and instant access to the money in his accounts without the risk or hassle of carrying cash. 43 . Insurance 44 . Money Plus Card The Corporate Payment card INVESMENT AND INSURANCE Nowadays a ward investment is becoming more popular. Food Plus Cards Prepaid Food Plus card. Types of investment: - Mutual Funds Invest through the Mutual Fund route to meet varied investment objectives. but some time he is in to the difficult situation. Gift Plus Cards Prepaid Gift Card. Person invest their money in to various schemes or in to the gold or share market etc.• • • • • • • • ForexPlus Cards Prepaid Travel Card. for that bank help person invest wisely through financial and investment services. Financial Planning Start Now Plan investments to meet financial goals Knowledge Centre Profit from research and make informed investment decisions.Traditional Plans HDFC children's PLAN. Bonds A secure investment avenue giving stable returns with tax benefits. HDFC Unit Linked Endowment Suvidha. HDFC Loan Cover Term Assurance Plan. HDFC Savings Assurance Plan. HDFC Unit Linked Endowment Suvidha HDFC Unit Linked Enhanced Life Protection GENERAL AND HEALTH INSURANCE Complete protection for business. HDFC Assurance Plan. HDFC Unit Linked Pension Plus. HDFC Unit Linked Endowment Plus II. HDFC Single Premium Whole of Life Insurance Unit Linked Plans HDFC Unit Linked Young Star Plus II. HDFC Unit Linked Young Star Suvidha Plus HDFC Unit Linked Pension. travel & more. HDFC Endowment Assurance Plan. HDFC Unit Linked Young Star Suvidha. 45 . health. HDFC Money Back Plan. HDFC Term Assurance Plan. g. transfer monies to India. HDFC Bank has a range of products and services that people can choose from to transact smoothly.Equities & Derivatives Leverage bank’s vast information repository and transact online. Bank offering following Foreign Exchange Products and Services. Foreign Exchange and Trade Services 46 . efficiently and in a timely manner. make payments etc. If people need to deal in foreign currency and keep tabs on exchange rates every now and then. Mudra Gold Bar Buy 24 Karat gold bars made in Switzerland and certified by Assay.. FOREX AND TRADE SERVICE Nowadays businesses becoming worldwide e. India to America but main problems are about monitory transaction because at every country the currency become changed so for that banks are playing a very important for the businesses. Cash to Master. PAYMENT SERVICE Nowadays life of a person become very stressful and he/she becoming busy with their own business. Foreign Currency Cash. Cheque Deposits.The following are different methods of transacting in Foreign Exchange and remitting money: • • • • • • • • Travelers Cheques. but they have to payment for something so for that reason bank’s payment services become started. Bank’s range of payment options make it easy for pay for a variety of utilities and services. person can bid goodbye to queues and paper work. All Foreign Exchange transactions are conducted by strictly adhering to RBI guidelines. Verified By Visa 47 . Remittances. Important guidelines and schedules. people will need to understand his Foreign Exchange limits. Depending on the nature of transaction or point of travel. Foreign Currency Drafts. Trade Services. Forex Services Branch Locator. With HDFC Bank's payment services. credit and Debit cards at your outlets through state of the art POS Machines or through your website and experience hassle free payment acceptance.Do you want to be worry free for your online purchases. Prepaid Mobile Refill If you are an HDFC Bank Account holder. Through the Internet. you can now use your HDFC Bank Debit Card also for online purchases. you can now recharge your Prepaid Mobile Phone with this service. your mobile phone and telephone . Visa Bill Pay Pay your utility bills from the comfort of your home! Pay using your HDFC Bank Visa credit card and forget long queue and late payments forever Pay Now 48 . Merchant Services Accept all Visa. MasterCard. Bill Pay Pay your telephone. ATMs. our comprehensive bill payments solution. electricity and mobile phone bills at your convenience. Now you can shop securely online with your existing Visa Debit/Credit card.with Bill Pay. What more. Net Safe Now shop online without revealing your HDFC Bank Credit Card number. make donations and subscribe to magazines without going through the hassles of any registration. Religious Offerings Now donate to your favorite temple easily and securely using HDFC BANK's Net Banking. Enjoy credit free period and reward points as per your credit card features. make subscriptions and donations. Direct Pay Shop or Pay bills online without cash or card.Use your HDFC Bank Credit Card to pay your utility bills online. Online Payment of Excise & Service Tax Make your Excise and Service Tax payments at your own convenience through HDFC Bank's Net Banking facility. Debit your account directly with our Direct Pay service! Visa Money Transfer Transfer funds to any Visa Card (debit or credit) within India at your own convenience through HDFC Bank's Net Banking facility. 49 . no registration required.FREE of cost. Insta Pay Pay your bills. e-Monies National Electronic Funds Transfer Transfer funds from your account to other Bank accounts across India . the grandeur and magnificence of royalty is alive and well. HDFC Bank's preferred/imperia Programme is the royal decree that enhances the exclusivity that you are accustomed to.IMPERIA/PREFERRED/CLASSIC BANKING As a special customer bank providing a TAJ to customer with name imperia/preferred customer. so that the whole world can see. For that bank provide a special service to their customer. NRI BANKING With a view to attract the savings and other remittance into India through banking channels from the person of Indian Nationality / Origin who are residing abroad and bolster the balance of payment position. 50 . So for this reason HDFC bank playing a good role in the customer’s life for their monitory transaction. Thus as retail banking service bank providing really good and beneficial services to their customer and as family member they are providing good services to every customer either they are came business related or anything. the Government of India introduced in 1970 Non-Resident(External) Account Rules which are governed by the Exchange Control Regulations. It makes you feel special at every step. This service goes beyond the obvious. that even today. rises above the expected. pampering with services those others can only dream about. The funds in this account are fully repatriable. Current or fixed deposits in Indian rupees. The funds in this account are not repatriable (only interest accrued is repatriable). 51 . namely US Dollars. in the five major currencies. DM.The funds held in Non-Resident (External) Accounts (NRE Accounts) qualify for certain benefits like exemptions from taxes in India. Current or Fixed Deposits in Indian Rupees. Euro. FCNR (Foreign Currency Non Resident Accounts) It can be in the form of fixed Deposits only. free repatriations facilities. GBP. etc. The funds in this account are fully repatriable. NRE (Non Resident External Accounts) It can be in the form of Savings. and Japanese Yen. Deposit types NRI-Banking facilitates the NRI customer to open the following account types. NRO (Non Resident Ordinary Accounts) It can be in the form of Savings. international trade finance businesses and institutional customers. Also included is banking services offered to other financial institutions. transactional and electronic banking products. such as pension funds and government entities/agencies. which may lead to purchasing new. real estate developers and investors. or employing new staff to cope with the demand. wholesale banking services usually involve high value transactions.WHOLESALE BANKING Wholesale banking is the provision of services by banks to the like of large corporate clients. • • • Large Corporate Supply Chain Partners Agricultural Lending Small & medium term enterprises HDFC Bank understands how much of hard work goes into establishing a successful SME. services. Wholesale banking compares with retail banking. And as business expands and enters new territories and markets. or updating existing plant and equipment. mid-sized companies. Bank also understands that business is anything but "small" and as demanding as ever. a wide array of commercial. person need to keep pace with the growing requests that come in. resources and expert advice to help ensure that your business excels. 52 . Corporate service Corporate Banking reflects HDFC Bank's strengths in providing our corporate clients in India. That's why HDFC Bank has assembled products. We achieve this through innovative product development and a well-integrated approach to relationship management. which is the provision of banking services to individuals. In essence. Specialized Services. Mutual Funds. Trusts. Internet Banking.The following links will help identify individual needs. E-Ticketing - Helps the customer by providing him a direct access to book a Railway Ticket online and get it home delivered. Financial Institutions & Trusts HDFC Bank provides financial services to: • • • • • • • Banks. Financial Institutions. Indirect taxes and Sales Tax collections at their local HDFC Bank. Value Added Services. Government sector HDFC Bank acts as an active medium between the government and the customers by means of various services. Commodity Businesses. Insurance Companies. These services include: Tax Collection wherein customers can directly pay their taxes like Direct taxes. Non-Funded Services. • • • • • Funded Services. 53 . Stock Brokers. The Stamp Duty Franking Facility is available at branches in Gujarat Disbursement of Pension to retired Employees of Central Govt and Defence is directly done by HDFC Bank along with the disbursement of pension to the members of EPFO (Employees Provident Fund Organisation). Kolhapur. Collection of stamp duty Maharashtra & Gujarat. Mints and Presses. Ratnagiri. Panvel. Collection of levies and taxes on behalf of Municipal Corporations i. Electronic Collection of fees on behalf of DGFT is done by the bank too. is undertaken by the Bank. Lower Parel.e.Opening of L/C's is done by the bank on behalf of Government of India. 54 . Thane (Talao Pali). Pune(FC Road). Mira Road. Chembur. Nagpur. thus facilitating imports for the Government. is done via franking mode in the state's of The Stamp Duty Franking Facility is available at following branches in Maharashtra Fort. Pimpri. Kalyan -Dombivli Municipal Corporation. HUMAN RESOURCE DEPARTMENT 55 . HUMAN RESOURCE DEPARTMENT “Human Resource Management function that helps managers recruit. Responsibilities of Human Resource Department. in all business concerns. HRM is concerned with the people’s dimension in organizations. Human personnel function. Ø Take decisions for approval regarding leave notes. shortlist the candidate and takes the first round of the interview. i. Because of the unique importance of HUMAN RESOURCE and its complexity due to ever changing psychology. Personnel management is not something you really turn over to personnel department staff. Ø HRD maintain daily attendance record through branch manager via E-mail. 56 . selection and training of the candidates. I. The personnel function or system can be broadly defined as the management of people at work. and not mere direction of material resources. The essential ingredient of management is the leadership and direction of people. He also does screening of the candidates. behavior and attitudes of men and women at work. Management is the development of people. there is one common element. In a sense. It is said that people are our single most important assets. management is personnel administration. He talks to the consultant related to the recruitment of the qualified candidates. Each manager of people has to be his own personnel man. Personnel function is particularly interested in personnel relationship and interaction of employeeshuman relations.e.management of managers and management of workers. Obviously. train and develop members for an organization. Work force of an Organization is one of the most important inputs of components. select. manpower management function is becoming increasingly specialized.. Human capital is the greatest asset of a business enterprise.e. Ø He takes the decision related to the recruitment. 57 . Every organization needs employee time by time because of promotion or retirement of an employee. As we know it is very important for an industrial concerns to have efficient and effective personnel with right quality and at right time and at right place available whenever they are needed. Sources of Recruitment Ø Personal data of candidates and data bank maintain by the HR. Ø He is responsible for the monthly salary of the employees as per their attendants and passing to the Branch Manager. the Human Resource department from each Branch receives the requirement for the person for whole year. Recruitment Recruitment is a process of searching for prospective candidates for the given job in the industry. Ø They are taking surprising visit in every branch and collect information about employees. Then the planning of recruitment and training is done by training manager and recruiting manager which is approved from Head of HR Department. At the end of the year. Human Resource planning This is handled by doing the planning at the beginning of every year. For this purpose an organization need to search for the right candidate. And so it needs to encourage this type of right candidates whenever they require. He also maintains personal file of each employee. He also completes the joining formalities of each new employee. department Ø Campus Recruitment.Ø He maintains the database of the candidates to come for an interview. Ø Placement consultants. Ø Selection is based on probation base. skills and abilities of workers to perform specific job. Training and Development Ø Training aims at increasing the aptitudes. 58 . A new and changed technique may be taken as an advantages and improvement affected in the old methods. It makes employees more effective and skillful. Recruitment Process Applicant pool Profile Check Shortlist Screening Interview Selection Ø Selection is the process of taking individuals out of the pool of job applicants with requisite qualifications and competence to fill jobs in the organization. Ø While the selection of the senior level post. In present dynamic world of business training is more important there is an ever present need for training men. Ø Employee reference. is taken by head office at Mumbai. Gujarat Samachar.Ø Company’s own website. So that new and changed techniques may be adopted. they are taking experienced person for 6 month’s probation and for fresher the probation period is 1 year. It is define as the process of differentiating between applicants in order to identify and hire those with a greater likelihood of success in a job. Ø Advertisement in the news papers like Times of India. in the beginning the person has to work under the observation of his senior then the have to go in market to have their own experience. It is define as the systematic evaluation of the individual with respect to his/her performance on the job and his/her potential for development. They also provide training related to customer care and communication. Performance Appraisal Ø An organization’s goals can be achieve only when people put in their best efforts.Ø Training is learning experience that seeks relatively permanent change in an individual that will improve his/her ability to perform on the job. they use to give them on the job work. 59 . Ø In case of sales persons to distribute their various products. Remuneration occupies an important place in the life of an employee. Employee Remuneration and Incentive Payments Ø Remuneration is the compensation an employee receives in return for his/her contribution to the organization. Ø The time for training program for the candidate is depends up on the relevant position of his work area. Ø They provide “on the job” training to their employees in the branch as they select these employees for selling various products of bank by direct marketing. Performance appraisal may be understood as the assessment of an individual’s performance in a systematic way. After appraising the performance of the employee they put the grade of each employee in the following grade criteria. Whenever they select new candidates for any post. Ø To appraise the performance of the employee they have developed a credit system on the basis of the given target to the employee. While other permanent staff are being given monthly salaries. As HDFC bank is reputed bank in market the pay scale are as per the standard. remuneration of an employee comprises – wages and salary. The bank is in service industry so the salary is given on monthly basis. For all this. HDFC bank is also giving attractive incentives as per the target. A proper compensation in terms of this is necessary for motivation employees for their continuous improved performance.Ø At HDFC. incentives. employees get incentives on the basis of the target given to each employee and their area of work. Employees benefit The employees of HDFC automatically become HDFC bank salary account Holders with special benefit and privileges and receive instant salary credit. They have developed the incentive structure for the employees on the basis of point system. The benefit 60 . it is required that wages and salaries organization. Ø Wages and salary refers to the establishment and implementation of sound policies and practices of employee’s compensation. the personnel are compensated only in terms of wages and salaries. While sales officer’s salary ranges from 15000 to 18000 per month. Ø Sales executives (coax) are being given salary of 6000 to 8000 per month. A wage and salary is the remuneration paid for the service of labor in production periodically to an employee. The salary of branch manager is around 35000 per month. • Wages and Salary Ø A part from various incentives and benefits. They use to hire certain salesman on commission base and they are provided their salaries on commission base. All the employees get the incentive in the form cash reward. • Incentive are provided well by In HDFC. 61 . Disputes and their resolution Disputes are common in organization. like branch manager or team manager for better performance in the department. Bank’s salary account. corporate card with individual liability (CCIL). access to phone banking and internet banking. Here are some of the features of HDFC Motivation Motivation is willingness to do something conditioned by this action’s ability to satisfy some need. In practice. Firstly.include international debit card. demat accounts. and host of other services to complement their savings account. Motivation is given by the responsible person. Every employee is free to talk to the head of the particular department if they have any problem related to the job. disputes mainly relate to the target only because if any employee is not achieving target he/she will not eligible for incentive which creates frustration among them. the problem is solved by the head of the particular department and if the problem does not solved by the head of that department then it is addressed to the HR Manager. MARKETING DEPARTMENT 62 . Bank plan to invest close to Rs 12 crore to create the environment that is required to support customer intelligence that leads to data based marketing. Marketing. Kelkar said that the bank would get experts to talk on a number of issues such as value-add tax and sales tax. There is a clear return on investment. Head.Marketing Management The activities of a company associated with buying and selling a product or service. HDFC has chartered an extensive Customer Lifecycle based marketing campaign calendar for this and the forthcoming fiscal. Bank has also been able to reduce their ad spends by about 10-15 per cent and has also reduced the cost of acquisition Bank's focus in future would be to enhance its database marketing initiatives. The bank has also launched another initiative called Business Ki Baten. Fractal. which is targeted at areas where the bulk of the population comprises small businessmen. as these concepts are relatively new to people living in smaller towns and cities. which from a functional point of view gives the team a stronger voice. packaging design. "We are going to demonstrate the advantages of net banking and mobile banking. which specialises in predicting the behavior of the customers in the areas of risk and marketing. Bank can measure the result of a campaign through the sales that they generate and the customers that are added. said that these initiatives are especially targeted at those consumers who are not aware about the bank's various value added services such as direct banking facilities. People who work in marketing departments of companies try to get the attention of target audiences by using slogans. HDFC Bank. selling and delivering products to people." said Kelkar. would be partnering 63 . It includes advertising. celebrity endorsements and general media exposure. Ajay Kelkar. Unica has been recognised by Gartner as the leading player in this field. which remain important in the bigger scheme of things. the bank also conducts event-based marketing These initiatives also complement our media-based marketing as well as on-theground marketing activities. We have set up a team to conduct marketing campaigns in a scientific manner using customer data. messages. using marketing automation technology provided by Unica. HDFC has been using analytics for taking informed marketing decisions.HDFC Bank's marketing team in various initiatives of growing the retail business quickly and cost effectively. and one of the very few in Asia. to have embarked on a data-led marketing analytics campaigns initiative. we have been able to intelligently use the 4-5 terabytes of customer data available in its warehouse. leveraging the existing relationships and proactively retaining existing customers. thereby. is expected to give HDFC an upper hand in understanding the needs and circumstances of their customers. usage patterns. Fractal's analytics-based marketing solutions span which the entire lifecycle of customer relationship right from customer acquisition to customer retention to customer value management. The marketing programmes would involve acquisition of customers profitably by reducing campaign costs. Fractal will also help the bank solve the problem of ever-increasing customer acquisition costs and reducing customer loyalty. preferences. There are learnings that can immediately be 64 . nurture and maximize lasting customer relationships. experimenting with creatives. media. Marketing Initiatives Taking By The Bank HDFC Bank is possibly the only bank in India. However. testing every campaign every step of the way. lifecycle. cross selling various asset and liability products to the existing customers. Fractal will help the bank use information to reach new customers and to build. etc. the marketing analytics initiative enables us to measure the efficacy of the campaigns. Through this tool. etc. and SMS for communicating our message to our target audience as they are the most costeffective routes of addressing our core target audiences with maximum degree of customization possible .e. pricing. making those more effective . it can be targeted separately from other segments of the market.absorbed and incorporated in the next campaigns. It is a key ingredient for successful marketing as it simplifies the targeting. e-mails. or potential customers. in a market into different groups. and these campaigns in a way provide us with information about customer choices and preferences that can be used for mass media communication. A true Market Segment meets all of the following criteria: it is distinct from other segments (heterogeneity across segments). i. but it requires a 65 . it is homogenous within the segments (exhibits common attributes). a particular group that has its own distinct customer profile and buyer characteristics so that for marketing purposes. within which the customers share a similar level of interest in the same or comparable sets of needs satisfied by a distinct marketing proposition. or segments. Media Vehicles Used For Send Message To Reach Target Audience HDFC Bank has been predominantly using direct mailers. positioning and the planning process. Market Segmentation simplifies the firm’s product. it is also explained as a marketing technique that targets a group of customers with specific characteristics. it responds similarly to a market stimulus and it can be reached by a market intervention. promotion and distribution strategies and also facilitates planning and organizing function of management more easily and cost effectively. Market Segmentation Market Segmentation is defined as the process of splitting customers. 3. Accessible: . It is referred as a tool for defining markets and thereby allocating resources. beliefs. likes.the target audiences must be diverse and able to show different reactions to different marketing mix. demographic environment. Feasible: . their internal strengths and weaknesses.it should be possible to determine the values of the variable used for the segmentation. external opportunities and threats. values. social and cultural factors. attitudes. 4. 5. and various others factors like the mission. Relevant: . and according to the history. Distinguishable: . economic environment. 2.it should justify the expected profits and the growth potential. A business must analyze the different needs of the market segments. dislikes. . it uses statistical techniques called factor analysis and cluster analysis to combine attitudinal and demographic data to develop segments that are easier to target. technological and political / legal aspects before deciding their own niche. gender and other measurable factors (Demographic Segmentation). global perspective. Measurable: . as well as the competitors strategy.thorough understanding of the customers needs. Philip Kotler mentioned five criteria for an effective segmentation which states that Segmentation should be: 1. taste and preferences (Psychological Segmentation). Market Segmentation can be done on the basis of the location (Geographic Segmentation). norms and standards of the organization. income.the target customers must be reachable and servable for the organization. on the basis of lifestyle. on the basis of age. loyalty and responsiveness (Behavioral Segmentation). vision.the firm must have an ability to draw an effective marketing 66 program for its customers. technological. As HDFC bank is a service sector industry they introduce different schemes for different people. tax benefits etc. demographic. A product focusing on a specific target market contrasts sharply with one. buying attitudes or buying habits.Through proper market research and market segmentation (it is the process of pulling apart the entire market as a whole and separating it into manageable disparate units based on various demographic. it can also be customer / product / competition related segmentation). geography. liquidity. economic and social factors. It is mainly defined by age. task. global.Market segmentation is an effort to increase a company’s precision marketing. or any other combination of demographics. cultural. Which are as follows: STEP 1: . whereas. political and 67 . Each person is different in nature and each have differ criteria for investment like risk factor. political. following the market strategy of mass marketing”. STEP 2: . External factors are the social. socio-economic grouping.Identify the potential buyers: . Targeting can be done by the firms by adopting a logical and systematic methodology / steps. return. gender. natural. values and objectives of the firm. Target Marketing “Market Specialization is a business term meaning the market segment to which a particular good or service is marketed.Select the target audiences: . It is generally studied and mapped by the organization through list and reports containing demographic information that may have an effect on the marketing of key products / services. vision. Internal environment includes the mission.The factors that influence Targeting are the Internal and External Environment. economic. purchasing power. A market segment consists of large identifiable group within a market with similar wants. market. you position the product in the mind of prospect. people. gain competitive advantage and place the brand in the customers mind to enhance their goodwill and become the most preferred brand. promotion. A company’s differentiating and positioning strategy must change as the product. psychological. image. public relation or selling differentiation. That is. geographic and behavioral information of the buyer. Positioning can be in the form of product. Positioning starts with a product. Positioning is what you do the mind of the prospect. Here is special Relationship Manager dedicated towards customer service and satisfaction and give them guidance about various schemes which helps them to get right 68 . But positioning is not what you do to a product. It is accurate positioning strategy because it signifies a trust with its clients. a company.Proper positioning of the Product: . it must communicate that positioning effectively.legal environment. advertising. HDFC bank have positioning strategy of “Continuing a Tradition of Trust”. Place and Promotion and obtain the demographic. Price. price. service. Positioning Strategy “Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the target market’s mind. Once the company has developed a clear positioning strategy. publicity. an institution. a service. distribution channel. STEP 3: . Through appropriately compiling the customers profile to decide the 4 P’s – Product. A piece of merchandise. positioning strategy can be worked out effectively.After developing an appropriate segmentation and target strategy. Positioning enables the firm to create a positive image. and competitors change over time. products to be offered and appropriately positioning each product to the segment. Targeting is deciding the potential buyers. or even a person. FINANCIAL DEPARTMENT 69 .scheme which suit their needs. In this way it continues to maintain a trust with its clients. line and staff organization. As in recent it is popular “No finance no business”. its chief Financial Officer and Treasurer manage the finance. As today people are facing lot of problem and have less confidence on the market so it is difficult to raise fund without proper planning. As bank has to keep watch on the deposits of its millions of customers and also it has to manage its own large financial base. The company should use to keep proper planning for the finance of its own and also of the large no. ORGANIZATION OF FINANCIAL ACTIVITIES OF BANK For the bank finance itself is the product now it is not an easy task to manage this finance. For the bank as it is a Financial Institution we can consider finance as lifeblood of this business. There are different types of organizational structure such as group organization. In HDFC Bank. it is very difficult task to raise funds from market. We can define financial management as a task of acquisition and utilization of funds needed in the business in a manner so that organizations goal can be achieved. The company should manage to get sufficient finance. But now a days it is not so. of depositors who are there with the bank. line organization.INTRODUCTION OF FINANCE DEPARTMENT In this modern era it is very easy to know how much important the finance is in the business. authority passes from top to bottom and responsibility passes from bottom to top level management. As current position of the market is totally different from ancient where it was very easy to get the finance. HDFC Bank has line of authority and line of authority is vertical i.e. Due to proper policies and separate management the company can have proper operation of finance. 70 . for the bank “Finance itself is business”. Because of big size of the bank one cannot manage all the accounts of it alone.726.807.24 1.43 3.830.58 222.81 5.421.09 16.59 58.70 167.21 5.911.As HDFC Bank is very big company and it has large cliental base so it is very difficult and complicated to manage its finance in proper way.386.44 6.519.10 21.26 8.054.290.62 .71 1.31 2. There we need of concrete and proper policies to have proper management of it.458.938.532.60 3.477.429. So.57 125.194.59 1.95 1.55 2009 – 10 16.77 98.607.244. FINANCIAL HIGHLIGHTS Rs.90 7.404. Lacs Particulars Interest Income Interest Expense Net Interest Income Other Income Net Revenues Operating costs Operating Result Provisions and Contingencies Loan Loss Provisions Others Profit before tax Provision for taxation Profit after tax Funds : Deposits Subordinated debt Stockholders’ Equity Working Funds Loans Investments 71 2008 .76 5.270.30 8.883.340.353.60 10.14 1.140.948.48 6.646.879.58 6.44 2.61 12.289.172.66 4.786.299.93 142.93 201.73 2.28 153.33 183.80 14.178.332.811.711.817. company has to appoint many different persons so that there is proper maintenance of the funds of different persons is possible.10 7.05 58.764.16 3. evidence supporting the amounts and disclosures in the financial statements.50 28. 1 Million Rs.00 ** 21.60 16.12 % 10. These consolidated financial statements are the responsibility of the Bank’s management and have been prepared by the management on the basis of separate financial statements and other financial information regarding components. HDFC Bank Limited Consolidated We have examined the attached Consolidated Balance Sheet of HDFC Bank Limited (“the Bank”) and its subsidiaries and associates (the Bank and its subsidiaries and associates constitute “the Group”) as at 31 March 2010 and also the Consolidated Profit and Loss Account and the Consolidated Cash Flow Statement for the year ended on that date annexed thereto.42 67.31 973.Key Ratios : Earnings per share (Rs) Return on Average Net worth Tier 1 Capital Ratio Total Capital Ratio Dividend per share (Rs) Dividend payout ratio Book value per share as at March 31 (Rs) Market price per share as at March 31 (Rs)* Price to Earnings Ratio Rs.17 % 344. on a test basis. 10 Lac = Rs. An audit also includes assessing the 72 . 10 Million **Proposed *Source: NSE 52.44 % 12.00 22.80 % 13. Our responsibility is to express an opinion on these financial statements based on our audit.12 1933.85 16.62 Auditor's Report on Financial Statements To The Board of Directors.40 18. 1 Crore = Rs. An audit includes examining.58 % 15. We conducted our audit in accordance with auditing standards generally accepted in India.69 % 10.26 % 17.72 % 470. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. and to the best of our information and according to the explanation given to us. 3. as well as evaluating the overall financial statement presentation. and our opinion is based solely on the report of the other auditor. whose financial statements reflect total assets of Rs.474 Thousands as at 31 March 2010. 32.740 Thousands for the year then ended. of the state of affairs of the group as at 31 March 2010.353. Based on our audit and on consideration of the report of other auditor on separate financial statements and on the consideration of the unaudited financial statements of the associates and on the other financial information of the components. 618.371. Accounting for Investments in Associates in Consolidated Financial Statements issued by the Institute of Chartered Accountants of India. We report that the Consolidated financial statements have been prepared by the Bank’s management in accordance with the requirements of Accounting Standard (AS) 21. 2. Consolidated Financial Statements and Accounting Standard (AS) 23. (i) in the case of the consolidated balance sheet. we are of the opinion that the attached consolidated financial statements give a true and fair view in conformity with the accounting principles generally accepted in India.099 Thousands and net cash inflows amounting to Rs.accounting principles used and significant estimates made by the management.656 Thousands for the year then ended. total revenue of Rs. We believe that our audit provides a reasonable basis for our opinion. We did not audit the financial statements of one of the subsidiaries. These unaudited financial statements reflect the Group’s share of net profit of Rs. (ii) in the case of the consolidated profit and loss account. of the profits of the group for the year ended on that 73 . We have also relied on the unaudited financial statements of certain associates provided by the management and included in the consolidated financial statements. These financial statements and other financial information have been audited by other auditors whose report has been furnished to us. and (iii) in the case of the consolidated cash flow statement. Centillion Solutions and Services Private Ltd. 74 . March 31.9 Nil The audited financial statements of the subsidiary companies and the un-audited financial statements of associate companies have been drawn up to the same reporting date as that of the Bank. * SolutionNET India Private Ltd. 2010. The consolidated financial statements present the accounts of HDFC Bank Ltd. Relation Subsidiary Subsidiary Associate Associate Associate Associate Associate Associate Country of Incorporation India India India India India India India India Ownership Interest (%) 59. Ltd. of the cash flows for the group for the year ended on that date. HDB Financial Services Ltd. 2009.0 29. HBL Global Private Ltd. Atlas Documentary Facilitators Company Private Ltd.e. with its following subsidiaries and associates : Name HDFC Securities Ltd. International Asset Reconstruction Company Private Ltd.date.4 29. i. ceased to be an associate with effect from May 5.0 95.0 Nil 12.3 29. SolutionNET India Private.* Softcell Technologies Ltd. 2010 75 .Consolidated Balance Sheet As at March 31. Consolidated Profit and Loss Account As at March 31. 2010 76 . 2010 77 .Consolidated Cash Flow Statement As at March 31. 2010 78 .Consolidated Cash Flow Statement As at March 31. NOTES TO ACCOUNTS 79 . 80 . 81 . 82 . 83 . 84 . 85 . Borrowing costs on repo transactions are accounted for as interest expense. Accounting for Investments in Associates in Consolidated Financial Statements. In a reverse repo transaction. The book value of the securities pledged is credited to the investment account. B. The Bank consolidates its subsidiaries in accordance with AS-21.NOTES ON PRINCIPAL ACCOUNTING POLICIES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS A. Further. by the equity method of accounting. the Bank accounts for investments in associates in accordance with AS-23. is provided as a loss in the income statement. the bank borrows monies against pledge of securities. issued by the Institute of Chartered Accountants of India on a line-by-line basis by adding together the like items of assets. its subsidiaries and associates. which together constitute the ‘Group’. The securities purchased are debited to the investment account at the 86 . the difference between the sale price and book value. Capital reserve on consolidation represents the difference between the Bank’s share in the net worth of the subsidiary and the cost of acquisition at the time of making the investment in the subsidiary. issued by the Institute of Chartered Accountants of India. In respect of repo transactions outstanding at the balance sheet date. if the former is lower than the latter. liabilities. Consolidated Financial Statements. Principles of Consolidation: The consolidated financial statements comprise the financial statements of HDFC Bank Ltd. (the Bank). income and expenditure. Repo and Reverse Repo Transactions: In a repo transaction. the bank lends monies against incoming pledge of securities. Investments which are long term in nature are stated at cost. C. HDFC Securities Ltd. In respect of repo transactions under Liquidity Adjustment Facility with RBI (LAF). Costs thereon are accounted for as interest expense. The Company provides for compensated absences in accordance with AS-15 (revised 2005) Employee Benefits. HDB Financial Services Ltd. Current investments are valued at lower of cost and net realizable value. Compensated Absences The Company does not have a policy of encashment of unavailed leaves for its employees.market price on the date of the transaction. Provisions are made only in case of permanent diminution in the value of investment. In respect of reverse repo transactions under LAF. Current investments are valued at cost or market value. The provision is based on an independent external actuarial valuation at the balance sheet date. All investments of long-term nature are valued at cost. monies borrowed from RBI are credited to investment account and reversed on maturity of the transaction. monies paid to RBI are debited to investment account and reversed on maturity of the transaction. Revenues thereon are accounted as interest income. 87 . Revenues thereon are accounted as interest income. Provision is made to recognise a diminution. whichever is lower. in the value of long-term investments. other than temporary. 2008. E. 1956 and licensed by the RBI under the Banking Regulation Act. The appointed date of the merger was April 1. and was effective from May 23.08 dated May 20. Merger of the Centurion Bank of Punjab Limited During the year ended March 31.131/2007. April 1. PSBD.each of HDFC Bank were allotted at par to the shareholders of CBoP vide board resolution dated June 24. 2008 was sanctioned by the RBI vide their order DBOD No. 1949.98. 10/. (‘HDFC Bank’ or ‘the Bank’) under section 44 A (4) of the Banking Regulation Act. The Scheme of Amalgamation (‘the Scheme’) of Centurion Bank of Punjab Limited (‘CBoP’ or ‘eCBoP’) with HDFC Bank Ltd. 2008. 1/. 2008.each of CBoP held by them on the record date i. in consideration of the transfer of and vesting of the undertaking of CBoP. the Group is considered to operate in only the domestic segment (India).e. 2008. The excess of the value of net assets transferred over the paid up value of shares issued in consideration have been adjusted in Amalgamation Reserve as per the Scheme of Amalgamation. 1949 which was approved by the shareholders of both the banks on March 27.D. upon its coming into effect from the appointed date i. Geographic Segments Since the Group does not have material earnings emanating outside India. the entire undertaking of CBoP including all its assets and liabilities stood transferred / deemed to be transferred to and vest in HDFC Bank. 2008.01. 10/. As per the Scheme.956 equity shares of Rs. Accordingly 6. 88 .83. June 16. 2008. As per the Scheme. 16197/16.e.each fully paid-up was issued to members of the eCBoP for every twenty nine equity shares of the face value of Re. one equity share of HDFC Bank of the face value of Rs. 2009 the Centurion Bank of Punjab got merged with HDFC Bank Ltd. Both the entities were banking companies incorporated under the Companies Act. 2008 were accounted at the values at which they were appearing in the books of CBoP as on March 31.62) (62. a surplus of Rs.801. 2008 and provisions arising out of harmonization of accounting policies and estimates. as per the Scheme.The amalgamation has been accounted using the pooling of interest method. Accordingly.049. as approved by the Board of Directors of HDFC Bank and as prescribed in the Scheme.88) (218. which was credited to Amalgamation Reserve in accordance with the Scheme.03 Amoun t Amount 2. 89 .956 equity shares of face value of Rs. liabilities and reserves of CBoP and after effecting the above adjustments.83.15 ) (288. (Rs. were made by the Bank against the reserves arising on amalgamation. 1.089. 2008 adjusted for options allotted by eCBoP between April 1.17) 1. After accounting the assets.82 (690. 10 each Less : Statutory Reserves taken over on amalgamation Excess of net assets over the paid-up value of shares issued and Statutory Reserve Less : Harmonization of accounting policies and estimates Less : Expenses related to merger Amalgamation Reserve (69. 2008. were made for the difference between the net value appearing in the books of CBoP and the value as determined by HDFC Bank. 2008 till May 22.049. the assets and liabilities of CBoP that vested in HDFC Bank as on April 1. Also the Bank provided for merger related expenses on a best estimate basis. Such adjustments.98.03) 1. lacs) Particulars Net Assets of eCBoP as on the reporting date of merger* Less : 6.03 lacs arose.85 *Net assets taken over on April 1. if the amalgamation is an “amalgamation in the nature of merger”. 7. 2. HDFC Trustee Company Ltd. 1. 246. Accounting for Amalgamation. 90 . the Bank’s related parties are disclosed below : Promoter Housing Development Finance Corporation Ltd.354. Earnings Per Equity Share Basic and Diluted earnings per equity share have been calculated based on the net profit after taxation of Rs. F. As a result the balances in these accounts are lower by the aforesaid amounts. HDFC Holdings Ltd.825).As per AS-14.573 (previous year : 424.65 lacs (previous year : Rs. 3. 65 lacs) and Investment Reserve Account (Rs. Related Party Disclosure.248.02 lacs) have been credited to Amalgamation Reserve in accordance with the scheme. the identity of reserves of the amalgamating entity is required to be preserved in the books of HDFC Bank.003. issued by the Institute of Chartered Accountants of India.439. Capital Reserve (Rs. HDFC Developers Ltd. Securities Premium Account (Rs. GRUH Finance Ltd. G. HDFC Standard Life Insurance Company Ltd.99 lacs) and the weighted average number of equity shares outstanding during the year amounting to 436.60 lacs).754.49 lacs). However the balances in Profit and Loss Account (Rs. HDFC Investments Ltd. Related Party Disclosures As per AS-18. Enterprises under common control of the promoter HDFC Asset Management Company Ltd. Ltd. Director Harish Engineer. 2009) Softcell Technologies Ltd. HDFC Asset Management Company (Singapore) Pte. Ltd. Key Management Personnel Aditya Puri. HDFC Ventures Trustee Company Ltd. HDFC Venture Capital Ltd. Ltd. Ltd. 2009) International Asset Reconstruction Company Pvt. Small and Micro Industries HDFC Bank Ltd. Ltd. Sudha Engineer H. Ltd. Director Related Party to Key Management Personnel Salisbury Investments Pvt. Managing Director Paresh Sukthankar. HBL Global Pvt. HDFC Sales Pvt. 91 . Ltd. HDFC Ergo General Insurance Company Ltd. Atlas Documentary Facilitators Company Pvt. (ceased to be an associate from March 30. Ltd. Griha Investments Associates SolutionNET India Pvt. (ceased to be an associate from May 5. Kairoleaf Analytics Pvt.HDFC Realty Ltd. HDFC Property Ventures Ltd. Ltd. Centillion Solutions and Services Pvt. and there are no amounts unpaid to these suppliers as at the year end. 2006 which came into force from October 2. 2006 there are five (previous year : nine) suppliers registered under the said Act. Small and Medium enterprises. HDFC Securities Ltd. Small and Medium Enterprises Development Act. On the basis of the intimations received from suppliers regarding their status under the Micro. 2006 and amount unpaid as at March 31. HDB Financial Services Ltd. 0. There have been no reported cases of delays in payments to micro and small enterprises or of interest payments due to delays in such payments. 2006. certain disclosures are required to be made relating to Micro.Under the Micro. 92 . 2010 is Rs.3 lacs (previous year : Rs. The Company has received intimation from a supplier regarding their status under the Micro. Small and Medium Enterprises Development Act. Small and Medium Enterprises Development Act. 36 lacs). etc. performance. retain and motivate employees. The Committee consists of Mr. Jagdish Capoor. Capoor are independent directors. transmission. Mr. Jagdish Capoor. are placed before the Committee for ratification. The Committee is chaired by Mr. The Committee met 6 (Six) times during the year. Mr. Pandit Palande are the members of the Committee. skill and competence. Jagdish Capoor. non-receipt of Annual Report. dividends.NOTES ON CORPORATE GOVERNANCE Compensation Committee The Compensation Committee reviews the overall compensation structure and policies of the Bank with a view to attract. Allotment of shares to the employees on exercise of stock options granted under the various Employees Stock Option Schemes which are made in terms of the powers delegated by the Board in this regard. The Bank’s compensation policy provides a fair and consistent basis for motivating and rewarding employees appropriately according to their job role / size. considers grant of stock options to employees and reviews compensation levels of the Bank’s employees vis-à-vis other banks and industry in general. Investor Grievance (Share) Committee The Committee approves and monitors transfer. Aditya Puri and Mr. Ashim Samanta. All the members of the Committee other than Mr. Gautam Divan. splitting and consolidation of shares. The powers to approve share 93 . The Committee is chaired by Mr. contribution. Mr. Gautam Divan and Dr. The Committee also monitors redressal of complaints from shareholders relating to transfer of shares. Mr. Capoor. 94 . requests for revalidation of dividend and fractional warrants and other investor related matters. The Committee consists of Mrs. C. The Committee is chaired by Mrs. 78 instruments of transfer representing 4346 shares were pending and since then the same have been processed. The Committee met 6 (six) times during the year. During the year under review 1888 complaints were received from the shareholders. Renu Karnad. Mr. Renu Karnad. queries relating to annual reports and amalgamation. Paresh Sukthankar.transfers and dematerialisation requests have been delegated to executives of the Bank to avoid delays that may arise due to non-availability of the members of the Committee. verifies adherence to various risk parameters and prudential limits for treasury operations and reviews its risk monitoring system. nomination requests. The Committee develops Bank’s credit and market risk policies and procedures. Aditya Puri. These letters have also been responded to. Mr. Risk Monitoring Committee The Committee has been formed as per the guidelines of Reserve Bank of India on Asset Liability Management / Risk Management Systems. As on March 31. The details of the transfers are reported to the Board of Directors from time to time. ECS / NECS Mandates. Besides 10. 2010. The Committee also ensures that the Bank’s credit exposure to any one group or industry does not exceed the internally set limits and that the risk is prudentially diversified. Vasudev and Mr. M. The Committee met 15 (fifteen) times during the year.907 letters were received from the shareholders relating to change of address. All the complaints were attended to and as on 31st March 2010 no complaints remained unattended. They endeavor to keep themselves updated with changes in global economy and legislation. g) Whistle Blower Policy 95 . Mr.COMPLIANCE WITH NON-MANDATORY REQUIREMENTS a) Board of Directors The Bank maintains the expenses relating to the office of non-executive Chairman of the Bank and reimburses all the expenses incurred in performance of his duties. The Committee comprises majority of independent directors. Pursuant to Section 10(2A) of the Banking Regulation Act. e) Training of Board Members The Bank’s Board of Directors consists of professionals with expertise in their respective fields and industry. other than the Chairman and/or whole-time director. Jagdish Capoor is the Chairman of the Committee and is not an independent Director. f) Mechanism for evaluating non-executive Board Members The Nomination Committee evaluates the non-executive Board members every year. They attend various workshops and seminars to keep themselves abreast with the changes in the business environment. The performance evaluation of the members of the Nomination Committee is done by the Board of Directors excluding the Directors being evaluated. 1949. all the directors. b) Remuneration Committee The Bank has set-up a Compensation Committee of Directors to determine the Bank’s policy on remuneration packages for all employees. cannot hold office continuously for a period exceeding 8 (eight) years. 05 7. SHARE PRICE / CHART 96 .62 4. 2010 Sr.25 No. No.The Bank has adopted a Whistle Blower Policy pursuant to which employees of the Bank can raise their concerns relating to fraud.07 9.37 9. CATEGORIES OF SHAREHOLDERS AS AT MARCH 31.59 * None of the equity shares held by the Promoter Group are under pledge.73 16.74 26.97 0. of Shares 108643220 77694909 3407493 121692561 % to Share Capital 23.60 100. None of the personnel has been denied access to the Audit and Compliance Committee. malpractice or any other activity or event which is against the interest of the Bank or society as a whole. Category 1 2 3 4 5 6 7 8 9 10 Promoters * J P Morgan Chase Bank ( Depository for ADS ) Deutsche Bank Trust Company Americas ( Depository for GDR ) Foreign Institutional Investors Foreign Bodies / Foreign Nationals / Overseas Corporate Bodies and Non Resident Indians Financial Institutions / Banks Insurance Companies Mutual Funds / UTI Indian Companies Individuals TOTAL 220484 34892409 20004918 41503470 43959792 457743272 0.00 5724016 1. The Audit and Compliance Committee of the Bank has reviewed the functioning of the Whistle Blower mechanism. The monthly high and low quotation of Bank’s equity shares traded on Bombay Stock Exchange Ltd (BSE) and National Stock Exchange of India Ltd (NSE) during FY 2009-10 and its performance vis-à-vis BSE SENSEX and S&P CNX NIFTY respectively is as under: 97 . MEANS OF COMMUNICATION 98 . com. dividend policy. 99 . The results are also displayed on the Bank’s web-site at www. The web-site also gives a link to www. prohibits purchase / sale of shares of the Bank by employees while in possession of unpublished price sensitive information in relation to the Bank.sec. shareholding information. CODE FOR PREVENTION OF INSIDER TRADING The Bank has adopted a share dealing code for the prevention of insider trading in the shares of the Bank. inter alia. key shareholders’ agreements. USA. Memorandum and Articles of Association of the Bank.gov where the investors can view statutory filings of the Bank with the Securities and Exchange Commission.The quarterly and half-yearly unaudited financial results are published in 'Business Standard' in English and 'Mumbai Sakal' in Marathi (regional language). The share dealing code. etc.hdfcbank. The shareholders can visit the Bank’s web-site for financial information. BALANCE SHEET SIZE (Rs. Crores) 98883 127262 2009 2010 100 . Crores) 183271 222459 2009 2010 ADVANCES (Rs. Crores) 61154 72271 2009 2010 101 .RETAIL ASSETS (Rs. Crores) 142812 167404 2009 2010 102 .DEPOSITS (Rs. SAVINGS DEPOSITS (Rs. Crores) 49877 34915 2009 2010 103 . 20% 16. Crores) 2245 1590 1141 871 510 120 210 297 388 666 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 104 .80% 2009 2010 2949 PROFIT AFTER TAX (Rs.RETURN ON CAPITAL (%) 16. ) (Rs.) 52.) 8.5 3.6 EARNING PER SHARE (Rs.6 11 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 105 .9 46.9 22.5 2.9 8.6 2 3 4.9 13.5 1.2 36.5 10 7 5.3 27.8 18 5.5 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 67.12 DIVIDEND PER SHARE (Rs. 2010 106 .28% Operating Expense Shareholding Pattern as on 31st March.93% Interest from adv ances Profit on inv estment 3. Exchange & Brokerage Other interest income FX & Deriv e income ativ 14.55% Commission.48% 11.17% 1.05% 0.RUPEE EARNED 0.75% Interest from inv estment Others RUPEE SPENT 31.09% 19.63% 7.31% Interest expense 42.46% 60.30% tax prov isions div idend & Tax on Div idend Transfer to reserv e 4.00% 3. 107 . and Threats involved in a project or in a business venture. The technique is credited to Albert Humphrey.WHAT IS SWOT ANALYSIS? SWOT Analysis is a strategic planning method used to evaluate the Strengths. Opportunities. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. who led a convention at Stanford University in the 1960s and 1970s using data from Fortune 500 companies. 108 . Weaknesses. FIIs can buy its stock Higher profitability 109 .SWOT ANALAYSIS OF HDFC BANK STRENGTHS • HDFC is the strongest and most venerable play on Indian mortgages over the long term. Dedicated workforce aiming at making a long-term career in the field. banking. AMC. • • • • • • • • • High degree of customer satisfaction. BPO. Besides the core business.4 per cent Free float available. • • • HDFC has differentiated itself from its peers with its diversified network and revamped distribution strategy HDFC has been highly proactive in passing on the cost and benefit to customers. HDFC’s insurance. Superior customer service vs. Lower response time with efficient and effective service. and real estate private equity businesses are also growing at a rapid pace and the estimated value of its investments/subsidiaries explains ~30% of HDFC’s market capitalization. higher net interest margin Better quality of assets. The management of the bank is termed to be one of the best in the country. NPA of 0. competitors Large share of low-cost deposits. Products have required accreditations. 110 . Major stake held by American financial groups which are under stress due to economic slowdown. HDFC Bank anticipates major cost savings whilst maintaining high levels of customer service thanks to new enterprise software agreement. Processes and systems. • • • • Customer service staff needs training. Could extend to overseas broadly Fast-track career development opportunities on an industry-wide basis. Unique partnership to create job opportunities for IFBI’s PGDBO students HDFC bank automates business processes with Staff ware. Untapped rural markets. growing only organically Possible takeover target OPPORTUNITIES • • • • • • • Fast growing insurance business in the country. • HDFC Bank plans to set up a non-banking finance company (NBFC) to undertake fund-based activities.WEAKNESSES • • High dependence on individual loans. Sectoral growth is constrained by low unemployment levels and competition for staff • • • • Marginal international presence No next line of leadership Not very aggressive in M&A space. An applied research centre to create opportunities for developing techniques to provide added-value services. etc need to be better managed Management covers insufficient. Varying and In-Convenient ECS dates. YES Bank etc which posses an external entrant threat to HDFC Bank – as this Banks are known for their art of working and maintain high standards of customer service.000 111 . THREATS • • • Loss of market share to commercial banks and HFC’s Higher than expected increase in funding cost Risk of fraud and NPA accretion due to increase in interest rates and fall in property prices is inherent to the mortgage business • • • • • • • Lack of infrastructure in rural areas could constrain investment. an account needs a minimum balance of Rs. Unlike Government Banks. which are known for their state of art working and keeping low operation costs.10. Very high competition prevailing in the industry Extension overseas holds a lot of risk! Threat from credit card collections dept. High volume/low cost market is intensely competitive. India is able to attract many international financial & banking institutes. • After showing a significant growth overall. India has witnessed entry of many international banks like CITI Bank.• In recent times. Opportunity: • Outsourcing of Non – Core Business. Strategy: • Consider additional benefits 112 . S – T Strategies T H R E A T S Strength: • Low operating costs Threat: • Increased Competition from others Pvt. Opportunity: • Market Expansion. Threat: • Entry of many Foreign Banks. Strategy: • Steps to Ensure Loyalty by old Customers. Strategy: • Deep Penetration into Rural Market. Strategy: • Outsource Customer Care & other E-Helps. WEAKNESSES W – O Strategies Weakness: • Workforce Responsiveness. Banks. W – T Strategies Weakness: • Not Equal to International Standards.COMPETITIVE SWOT ANALYSIS STRENGTHS O P O R T U N I T I E S S – O Strategies Strength: • Large Capital base. Banks from a great gap. Strength .Detailed Analysis Strength . it clearly states the expanding market for finance requirements and also the growth in surplus disposal income of Indian citizens has given a huge rise in savings deposits – from the above point it is clear that there is a huge market expansion possible in banking sector in India.000. Opportunity: Seeing the present financial & economic development of Indian Economy and also the tremendous growth of the Indian Companies including the acquisition spree followed by them.Opportunity Analysis Strength: It is well know that HDFC Bank has the largest Authorised Capital Base in the Banking System in India i.to penetrate into the rural sector of India for expanding its market share as well as leading all other Pvt.Threat Analysis 113 .000 (Non – Premium Value). Strategy: From the analysis of Strength & Opportunity the simple and straight possible strategy for HDFC Bank could be . having a total capacity to raise Rs. 19.000.e. India is preferred one of the best places for out – sourcing of business process works and many more.Strength: HDFC Bank is not only known for large capital but also for having a low operations cost though having huge number of branches and services provided. YES BANK etc. CITI BANK. Strategy: 114 . India is able to attract many international financial & banking institutes. Weakness . Opportunity: In the present world.Opportunity Analysis Weakness: It is well known that workforce responsiveness in banking sector is very low in Indian banking sector. which are known for their state of art working and keeping low operation costs. though HDFC Bank has better responsible staff but it still lacks behind its counterparts like HSBC. Strategy: To ensure that HDFC Bank keeps going on with low operation cost & have continuous business it should simply promote itself well & provide quality service so as to ensure customer loyalty. therefore guaranteeing continuous business. Threat: After showing a significant growth overall. As international companies are reaping huge benefits after out-sourcing there customer care & BPO’s, this same strategy should be implemented by HDFC Bank so as to have proper customer service without hindering customer expectations. Weakness - Threat Analysis Weakness: Though having a international presence, HDFC Bank has not been able to keep up the international standards in providing customer service as well as banking works. Threat: In recent times, India has witnessed entry of many international banks like CITI Bank, YES Bank etc which posses an external entrant threat to HDFC Bank – as this Banks are known for their art of working and maintain high standards of customer service. Strategy: After having new entrants threat, additional works of customers. HDFC Bank should come up with More additional benefits to its customer or may be even reduce some fees for any NEWS RELEASE 115 Electronic Religious Offering HDFC Bank ties up with Golden Temple, Amritsar for online donation Mumbai, February 8, 2010: HDFC Bank, one of the premier banks in the country signed an agreement with Shiromani Gurdwara Parbandhak Committee for offering e-collection through HDFC Bank Payment Gateway. Mr. A. Rajan, Country Head-Operations, HDFC Bank and Mr. Avtar Singh Makkar, President Shiromani Gurdwara Parbandhak Committee formally launched the payment gateway. Devotees of Golden Temple who were unable to make trip to Amritsar for any reason, can now have the satisfaction of instantaneously getting their donations reach Golden Temple through a user friendly secure website feature of HDFC Bank. There are large numbers of devotees based across the globe who can now avail this facility. The website offers a variety of payment options to the devotees to make their offerings, which includes direct debit to their accounts with the HDFC Bank, or pay by a debit card or a credit card of any Bank. Speaking on the occasion, Mr. A. Rajan, Country Head - Operations, HDFC Bank, said, “India is a spiritually enlightened country and HDFC Bank has always used technology that touches lives of our customers in all the spheres. This tie-up will enable lakhs of devotees of Golden Temple spread across the world, to conveniently send their offerings to the holy shrine using HDFC Bank’s secured net banking services. It also enables the devotees to select the specific purpose for which the donation is made." “We welcome this initiative by HDFC Bank as it offers devotees a convenient way of showering their gratitude”, said Mr. Avatar Singh Makkar, President, Shiromani Gurdwara Parbandhak Committee. 116 HDFC Bank has pioneered the concept of electronic religious offering and is already offering this facility to major temples across the country. The Bank has already tiedup with 37 religious organizations including, temples, churches, gurudwaras and mosques pan India. Some of the religious organizations already availing this facility through HDFC Bank are Mata Vaishnodevi Temple, Shree Jagannath Temple, Shree Sidhivinayak Temple, Shanta Durga Temple, Shirdi Sai Baba Sansthan, Nathdawara Mandir, SomnathTemple, Guruvayuoor Temple, Rama Krishna International Mission, Shree Anantha Padmanabha Temple etc. HDFC Bank now has 147 branches in Punjab. The Bank is well poised to offer its proven technology based products to all the leading temples in Punjab to enable them reach out to their devotees. For this purpose, HDFC Bank has designed a special product for Religious institutions to make the donation process simple and easy for devotees across the world. The Bank has also designed a special collections and payment services for the Temple Administration for its daily operations. Euromoney declares HDFC Bank ‘Best Private Banking Services overall’ in India -Also adjudged ’Best Local Bank in India’ for the 2nd year in a rowMumbai, February 17, 2010: HDFC Bank, one of India‟s premier banks, has been declared the „Best Private Banking Services overall„ in the Euromoney‟s annual global Private Banking and Wealth Management Poll - 2010. The survey also recognized HDFC Bank as the „Best Local Bank in India‟ for the second consecutive year. According to Euromoney, HDFC Bank's nomination as „Best Private Banking Services‟ indicates the Bank‟s excellence in both advisory and portfolio management across a range of asset classes and investment styles. 117 HDFC Bank opens its 4000th ATM in the country Mumbai. February 21. to 10th position in the current year from 23rd in the previous year.” He further added “In the process we have also outperformed all global private banks operating in India. Third Party Products. The growth in private banking in India is inclusive and we are witnessing growth from Tier 2 and Tier 3 cities also. we understand the challenges in the market and strongly believe that we have the right business strategy to address the growing market needs and capitalize on opportunities to build partnerships for mutual development with our clients.8 trillion of assets under management. The year Euromoney received a total of 1800 votes. as well as global and regional awards. up almost 10% on last year‟s poll. This is the Bank's 8th ATM in the city 118 .” The survey results reflect a global trend where new regional/ national players along with a few leading international banks are now making good inroads in the global Private Banking space. Group Head – Equities. we have moved up in rankings.The rankings are based on qualitative and quantitative survey supported by quantitative data provided by the participating banks. one of India’s premier banks. The survey also includes competitors' perceptions of the best performing providers in defined client and product categories. Abhay Aima. At HDFC Bank. in the private bank category. The results are based on combinations of performance figures and nominations. Private Banking. Votes cast represented $6. has opened its 4000th ATM in the country at Mangalore. 2010: HDFC Bank. Euromoney Private Banking and Wealth Management Services is the global industry benchmark for the wealth management industry and cover over 60 countries every year. Interestingly even in Asia. Commenting on this recognition. NRI & International Consumer Business said “It is an honor for us to be conferred with these awards. Marketing & Direct Banking Channels said. Gulf and Central Asian regions Mumbai. Gulf Cooperation Council (GCC) and Central Asia on a range of parameters. “We have always believed in using technology to enhance customer experience and the fact that over 80% of our regular customers transact at the ATM is proof that adoption of such innovations is very high. one of India’s premier banks. at any time of the day. viewing account balances and mini statements. the Bank has won the ’Best Retail Bank in India’ award for the fourth year in a row. now do cash withdrawal at any HDFC Bank ATM in 40% less time.Retail Liabilities. The new ATM located at Vijaya Mahal. The Bank also emerged best in the “Automobile Lending” sector. Rahul Bhagat. cheque status enquiry. K..and 1165th in the South overall.000 such ATMs in service today and will continue to expand in future. Beating a host of other competitors in Asia Pacific. The time thus saved is utilized for logical cross sell and targeted marketing to the customers. Speaking on the occasion Mr. The customers can also do other transactions on the ATM like credit card payment. 119 . President. With the introduction of "Faster ATMs" an HDFC Bank customer can. Padmanabha. Mangalore. March 29. 2010: HDFC Bank. It is a matter of great satisfaction for us that we have 4. Country Head . Surathkal was inaugurated by Mr. CAMPCO Ltd. has won The Asian Banker's ’Best Retail Bank in India’ award this year. transfer funds between accounts. NH 17." “Best Retail Bank” The Asian Banker declares HDFC Bank the “Best Retail Bank” in India Ø HDFC Bank wins for the 4th year in a row Ø More than 130 retail financial institutions participated from 22 countries across the Asia Pacific. the publication has observed in its communication to the company. .Some of the parameters that winners were measured on: Ø Outstanding annual performance of the retail banking unit Ø Sustainability as a franchise over a long period of time and across economic cycles Ø A well-defined franchise in the chosen marketplace Ø Transparency and accountability of business model Ø Ethical banking Ø Clear sales and execution skills at the product level Ø Rigorous risk management capabilities Ø Superior business and operational processes and technology Ø Strong penetration and efficiency of distribution channels Ø Focus on developing human resources to support the bank’s strategy Announcing the Asian Banker Excellence awards 2009. competitive and profitable over a period of time.First bank ever to retail silver bars in India HDFC Bank retails silver bars this Akshaya Tritiya 120 .” The Asian Banker Excellence in Retail Financial Services Programme was instituted in 2001 on the premise that an outstanding player in the retail financial services industry should build business franchises that are sustainable. ”HDFC Bank has passed all stringent screening and requirements throughout the Excellence in Retail Financial Services evaluation process and been granted the awards. Through the „Pure Silver‟ offer we hope to provide customers a convenient and reliable way of purchasing silver. HDFC Bank ”Pure Silver‟ bars will be imported from Switzerland. even today is amongst the highest consumers of Silver in the world. Mr. Seshan Ramakrishnan. Silver has been traditionally the most favoured form of investment for Indians next to gold. signifying highest level of purity as per international industry standards. Last year it sold around 440kgs gold during Akshaya Tritya.Mumbai. In fact. one of the premier banks in the country will retail into silver bars on the auspicious occasion of Akshaya Tritya this year. without any worries about the purity of the item purchased. HDFC Bank is the first ever bank to sell silver bars in India after following the huge success in gold coins / bars. Each bar weighing 50gms will carry a 99. The bank aims to sell a total of 100 to 150 kgs of the silver bars through 80-85 of its branches spread over 21 cities. HDFC Bank will keep its branches functional on Akshaya Tritya which falls on Sunday this year to enable its customers and the public at large purchase gold and silver on this auspicious day. 2010: HDFC Bank. The launch provides Indian customers an easy and reliable way of buying silver. India. Retail Liabilities Product Group. said. a popular investment option.99% Assay certification. “We have always endeavored to provide a variety of secured investment and saving products to our customers. May 13.” BIBLIOGRAPHY BOOKS REFFERED: 121 . Head. The bank is one of the leading players as far as gold is concerned. com • • • www.in REPORTS/ARTICLES REFFERED: • Annual report of HDFC BANK 2010 122 .com • www.wikipedia.nyse.R.hdfcbank.google.Bandgar • Research Methodology – C.rbi.Kothari WEBSITES REFFERED: • www.com www.co.• Management Accounting – Chaudhary & Chopde • Principles of Banking .in www.