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Final Draft For HDFC
Final Draft For HDFC
The Housing Development Finance Corporation (HDFC) was amongst the first to
receive an 'in-principle' approval from the Reserve Bank of India (RBI) to set up a bank
in the private sector, as part of RBI's liberalization of the Indian Banking industry in
1994. The Bank was incorporated in August 1994 in the name of 'HDFC Bank Limited'
with its registered office in Mumbai, India. HDFC Bank commenced operations as a
Scheduled Commercial Bank in January 1995
HDFC Bank, the pioneer of the retail-banking movement in India, is one of the fastest
growing and most profitable banks in India with a strong urban presence. The bank,
with a market share of 2.5% has a wide reach across the country with a branch network
of 425 branches and 950 ATMs. Strong understanding of the retail sphere (46% of total
advances in 9mFY05) and technology initiatives has made the bank the second largest
private sector bank in the country. The bank has largely outpaced the sector growth over
the last few years, but of late the growth momentum has been subdued due to
competitive reasons.
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network
of over 250 branches spread over 135 cities across the country. All branches are linked to
each other through an online real- time basis. Customers in 80 locations are also
serviced through Phone Banking. The Bank's expansion plans take into account the need
to have a presence in all major industrial and commercial centres where its corporate
customers are located as well as the need to build a strong retail customer base for both
deposits and loan products. Being a clearing/settlement bank to various leading stock
exchanges, the Bank has branches in the centres where the NSE/BSE have a strong and
active member base.
The Bank also has a chain of over 800 networked ATMs across these cities. Moreover,
HDFC Bank's ATM network can be accessed by all domestic and international
Visa/MasterCard,
Visa
credit/charge cardholders.
Electron/Maestro,
Plus/Cirrus
and
American
Express
Business Objectives
The primary objective of HDFC is to enhance residential housing stock in the country
through the provision of housing finance in a systematic and professional manner, and
to promote home ownership. Another objective is to increase the flow of resources to the
housing sector by integrating the housing finance sector with the overall domestic
financial markets.
Organizational Goals
HDFCs main goals are as follows:
Develop close relationships with individual households,
Maintain its position as the premier housing finance institution in the country,
Transform ideas into viable and creative solutions,
Provide consistently high returns to shareholders, and
To grow through diversification by leveraging off the existing client base.
e-Age Advantages
HDFC Bank uses state-of-the-art technology to give you an array of value-added
services.
ATM facility
Inter-city and inter-branch banking
Fund Transfers & Demand Drafts
sweep-In Account
Super Saver Account
Requirement for new account
2. Current account
The Advantages
You can access your account anytime and anywhere, to withdraw cash, deposit
cash/cheques, make balance inquiries or ask for mini-statements, or make a cheque
book request.
Useful inter-city banking
Safe & convenient intra-city banking
3. Sweep-In Account
With the Sweep-In Facility you can automatically transfer funds from your Fixed
Deposit to your Current Account whenever needed
4. Demat Account
Mutilated certificates, lost certificates, postal delays and counterfeit shares are a thing of
the past. Enter a world of safe, secure and convenient buying, selling and transacting
without suffering endless paperwork and delays. Convert your securities to electronic
format with the HDFC Bank Demat Account. It's as easy as opening a bank account.
HDFC Bank provides online access to your Demat Account, so that you can check your
holding using the Net Banking facility.
5. Private Banking
Private Banking is a comprehensive and exclusive service, offered by HDFC Bank, to
select high net worth individuals and institutions. The service is provided by an advisory
team specialized in financial and investment services. These experienced professionals
put together unbiased and objective guidance based on strong research and in-depth
analysis of financial instruments taking into account your financial goals and
requirements.
An experienced Relationship Manager serves as your one-point contact, for your
complete banking and investment needs and requirements.
6. Car loans
Car Loan - New Car Loans
HDFC Bank's Car Loans Scheme is the most convenient way to get a loan for your new
dream car.
7. Personal Loans
A wedding in the family. Maybe your house needs renovation. Or your daughter has
obtained admission to a medical college. These are moments in life when you may need
a helping hand. That's when you can rely on HDFC Bank Personal Loan. We offer all
kind of personal loan meeting your personal requirements in India.
The procedures are simple, documentation is minimal and approval is quick.
8. Home loans
Buying a property requires a complete knowledge of real estate and in today's complex
financial market it is difficult to choose the appropriate home loan company. HDFC
Bank brings home loans at your doorstep. With over 25 years of experience of our
parent company HDFC Ltd. and their dedicated team of experts offering a complete
package to meet your housing finance needs, and ever eager to guide you with a basket
of value added products and services.
9. Credit cards
To help you keep up with the changing times, HDFC Bank offers the finest payment
solutions, from Debit Cards to Credit Cards, all internationally valid.
Specifically, the HDFC Bank Credit Cards are available as two variants, the HDFC Bank
International Silver Card and the HDFC Bank International Gold Card
DEPARTMENTWISE STUDY
1. FINANCE DEPARTMENT
1.1. INTRODUCTION OF FINANCE DEPARTMENT
In this modern era it is very easy to know how much important the finance is in the
business. As current position of the market is totally different from ancient where it was
very easy to get the finance. But now a days it is not so, it is very difficult task to raise
funds from market. 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.
For the bank as it is a Financial Institution we can consider finance as lifeblood of this
business. The company should manage to get sufficient finance. The company should
use to keep proper planning for the finance of its own and also of the large no. of
depositors who are there with the bank. 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. In HDFC Bank, its chief Financial Officer and
Treasurer manage the finance. Due to proper policies and separate management the
company can have proper operation of finance.
For the bank finance itself is the product now it is not an easy task to manage this
finance. 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. As in recent it is popular No finance no
business, for the bank Finance itself is business.
organizational structure such as group organization, line organization, line and staff
organization. HDFC Bank has line of authority and line of authority is vertical i.e.
authority passes from top to bottom and responsibility passes from bottom to top level
management.
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. There we need of concrete and
proper policies to have proper management of it. Because of big size of the bank one
cannot manage all the accounts of it alone. So, company has to appoint many different
persons so that there is proper maintenance of the funds of different persons is possible.
1.1
People had played a critical role in HDFCs success. Their skills and commitment had
proved to be one of HDFCs most important assets. Yet, in its desire to develop
human resources, HDFC consciously discouraged 'stars'. As a matter of policy, the
company did not recruit fresh MBAs from the top-rated schools-the favorite hunting
ground for most financial services companies in India. By doing so, HDFC avoided
the baggage that typically
competitive
came
along-ego,
jealousies,
and
an
aggressively
tended to have more subdued personalities and were able to work jointly with
others. The management had a firm belief
harmonious
team-based
operations
that
the
efficiencies
and
synergy
of
intellectuals.
HDFC invested in augmenting the knowledge and skills of its frontline staff with a
focus on customers. A program me on Creating Value for HDFC Customers was
designed and offered to all frontline staff.
The HDFC School, an initiative that began in 2001, provided insights to frontline
staff, into the operations of HDFC, its products and processes and was facilitated by
senior line managers.
The
newcomers
as
well
HDFC
Intranet
supported
self-paced
learning
for
information on products, processes, policies and procedures and the general business
environment.
principles
included
and
and
Line managers were trained in the art of facilitation and the latest
methods
managerial
of
skills,
experiential learning.
effective
Other
training
programmes
self-motivation for the recoveries staff and team building programmes for
branches/departments.
2. MARKETING DEPARTMENT
3.1. INTRODUCTION OF MARKETING ACTIVITY BY BANK
As we know today in this competitive era marketing plays an important role for any
business to be with the market. As each and every small business should know skill of
marketing as it is one of the most important part of management. So for every company
it is important to have separate marketing department. We can define marketing as an
activity of satisfying human need by process of exchanging goods and services from
producer to consumers. The success of organization depends upon the marketing
activity.
Marketing involves activities related to the products. The activity which are done to
satisfy customer need in better way, it includes activities such advertising, publicity,
marketing research, distribution of products and services, sales promotion efforts etc. in
HDFC Bank marketing of its product is done by the different officers who are handling
that products. Here different services are allotted to different persons and they do
marketing of those products as per their requirement.
3.2
Marketing department consist of different persons with their unique position. Each and
every company has its own marketing department. Marketing organization is consisting
of people, activity, authority, responsibility and relationship for the purpose achieving
marketing objectives.
HDFC Bank has several branch. Here HDFC Bank has its own marketing department at
its main office but in branch the various officers do the marketing activity, which are
handling different products in the branch. It is mixture of line and staff organization.
The main authority is lying with branch manager only. Various officers have to take his
permission to carry out the various activities in these regards.
Simple Organization Chart of Marketing Activity.
We can see from the chart that in each department of the branch there is one senior
officer. The departments are allotted as per different products types. So each senior
officer had appointed one Customer Advisory Team officer who handles different types
ADVERTISING SRATEGY
With so many financial services in the fray and all of whom advertise extensively, HDFC
makes a deliberate effort to differentiate itself from the rest. The bank's key strength lies
in their ability to consistently deliver a superior banking product. Not one to swagger
unlike some banks which announce products first and then figure out how to deliver
them, HDFC Bank believes in investing money in ensuring that the product is perfect.
That is one of the reasons behind its success and profitability.
TARGET CUSTOMER:
The youth who is eager to settle down in life and the target customers are in the age
group of 24 to 30 years segment.
1. PRODUCT MIX
A)DEPOSITS:
Savings Account:
ICICI Bank offers a potheyr packed Savings Account with a host of
convenient features and banking channels to transact through, without the
stress of waiting in queues.
Senior Citizen Services:
ICICI understands that a Savings Account needs to do more after one
reaches the age of seniority. They have an ideal Savings Bank Service for
those who are 60 years and above
Fixed Deposits:
Safety, Flexibility, Liquidity and Returns. A combination of unbeatable
features of the Fixed Deposit from ICICI Bank.
Recurring Deposits:
Through ICICI Bank Recurring Deposit one can invest small amounts of
money every month that ends up with a large saving on maturity. So one
can enjoy twin advantages- affordability and higher earnings.
B) INVESTMENTS:
1. Loan on Phone for Customers: If you are an ICICI Bank customer, Go for
a pre-approved car loan. Call Customer Care numbers or sms "carloan "
to567676.
2. Loan on the Strength of Ytheir Income: Submit income proofs as
required and avail of finance up to 100% of the `on-road' cost of the car!*
3. Loan in the absence of Income Proof: ICICI offer car loan for customers
without income proof on producing the bank statement, loan repayment
track record, etc.
4. Car Loans with Fixed and Floating Interest Rates: ICICI Bank now offers
new car loans with both fixed and floating interest rate options. The
customer can opt for fixed interest rate or floating interest rate for taking a
car loan from ICICI Bank according to his/her discretion.
Farm Equipment Loans
Preferred financier for almost all leading tractor manufacturers in the
country. Financing farm equipments in over 381 locations spread across the
country. Fast processing of files with easy documentation. Flexible
repayment options in tandem with the farmer's seasonal liquidity. Monthly,
Quarterly and Half-yearly repayment patterns to choose from. Comfortable
repayment tenures from 1 year to 6 years.
Loan against Property
Loan against Property is the perfect way to unlock the hidden value of
ytheir property. With this loan, you can fully benefit from life's little
surprises you may have earlier passed over due to lack of funds. Live ytheir
dreams with a This multi-purpose loan puts funds at ytheir disposal to use
as you wish. This loan is available at a reasonable rate and can be repaid
comfortably over as many as 15 years. The ICICI Bank's Loan against
Property can be used for any purpose.
Expand ytheir business - No longer do you have to stifle ytheir creative
ideas. With funds at ytheir disposal, you can now expand ytheir business
without hesitation. ICICI helps you to meet all ytheir expenses with ease-when you take an ICICI Bank Loan against Property.
Commercial cards
ICICI Bank Commercial Cards have been designed as payment solutions
for large & mid-sized organizations. A widely accepted concept
internationally, Commercial Cards help to better streamline payment
processes & thus increase efficiencies.
Business Card
The ICICI Bank Business Card is aimed at SMEs as an enabler for their
business. The Business card is a smart alternative to cheques, cash, and
personal credit cards. With its purchasing convenience, cost savings,
available credit, and detailed reporting facilities, the ICICI Bank Business
Credit Card offers what ytheir business needs to stay on top.
Travel Card
Presenting ICICI Bank Travel Card. The hassle free way to Travel the
world. Traveling with US Dollar, Euro, Pound Sterling or Swiss Francs;
Looking for security and convenience; take ICICI Bank Travel Card. Issued
in duplicate. Offers the Pin based security. Has the convenience of usage of
Credit or Debit card.
Debit Cards
The ICICI Bank Debit Card is a revolutionary form of cash that allows
customers to access their bank account around the clock, around the world.
The ICICI Bank Debit Card can be used for shopping at more than 3.5 Lakh
merchants in India and 24 million merchants worldwide.
F) DEMAT SERVICES:
ICICI Bank Demat Services boasts of an ever-growing customer base of
over 7 lacs account holders. In their continuous endeavor to offer best of
the class services to customers they offer the following features:
E-Instructions:
Transfer securities 24 htheirs a day, 7 days a theyek through Internet &
Interactive Voice Response (IVR) at a lotheyr cost.
2. PRICING MIX:
The pricing decisions or the decisions related to interest and fee or
commission charged by banks are found instrumental in motivating or
influencing the target market. The RBI and the IBA are concerned with
regulations. The rate of interest is regulated by the RBI and other charges
are controlled by IBA. The pricing policy of a bank is considered important
for raising the number of customers vis--vis the accretion of deposits. Also
the quality of service provided has direct relationship with the fees charged.
Thus while deciding the price mix customer services rank the top position.
The banking organizations are required to frame two- fold strategies. First,
the strategy is concerned with interest and fee charged and the second
strategy is related to the interest paid. Since both the strategies throw a
vice- versa impact, it is important that banks attempt to establish a
correlation bettheyen two. It is essential that both the buyers as theyll as
the sellers have feeling of winning.
Pricing Bank Products Starts With Three Basic Questions.
1. What rate does the bank need to meet its financial objectives?
The answer is, it depends.
Some considerations for loan and deposit pricing are:
Equity-to-asset ratio
Pricing for the activities and risks associated with the product
Another element to consider in the pricing of earning assets is the risk of loss. Most
notably, this is relevant in loan pricing. A Many banks assign a risk weighting to
individual loans over a certain size or based on loan type and assign a credit risk charge
based on those ratings.
Customer relationships are difficult to assign a value to in the pricing process. A
Customers will generally press for some price concessions in consideration of other
relationships they have with the bank.
Asset and liability mix also impacts pricing results. Generally speaking, banks operating
with higher loan-to-asset ratios are able to afford to pay more for deposits. A Likewise,
banks can afford to be more competitive on certain deposit products if they have fewer
maturities in a particular timeframe or less total outstanding balances in a product line.
3. PLACE MIX:
This component of marketing mix is related to the offering of services. The
services are sold through the branches. The 2 important decision making
areas are:
Making available the promised services to the ultimate users
Selecting a suitable place for bank branches.
The number of branches OF ICICI: 1900 in India and 33 in Mumbai.
4. PROMOTION MIX:
The different components of promotion help bank professionals in
promotion the banking business.
Advertising: Television, radio, movies, theatres. ICICI uses this
component of the promotion mix with the motto of informing, sensing and
refusal to open deposit accounts without any valid reason for refusal;