A Project Report On



2ND Pg will be…. Admission order Xerox


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.



thanks and regards towards all of those who have directly or indirectly helped me in the successful completion of this project. I am grateful to all my friends who have helped me in the successful completion of this project. Date: -10-8-2009 Place: . support and inspiration needed to prepare this report.Mumbai Signature Nisar Hemal Gopal 4 . Last but not the least I am indebted to my PARENTS & my WIFE who provided me their time.ACKNOWLEDGEMENT I take this opportunity to express my deep sense of gratitude.

........... INTRODUCTION..7 PRIVATE BANKING……………………………… 3.......3 FINANCE DEPARMENT………………………… 5 ..CONTENTS 1.....2 MARKETING DEPARTMENT…………………… 3..2 MISSION.. 3....… 2...2 LOANS…………………………………………….…...... 2...........1 HISTORY OF BANKING..1 ACCOUNTS & DEPOSITES……………………........... 1.6 PAYMENT SERVICES…………………………. 1.3 CARDS……………………………………………..... 2............5 FOREX&TRADE SERVICE………………………....... 2......3 BOARD OF DIRECTORS……………. 1.........................1 HUMAN RESOURSE DEPARTMENT………. DEPARMENT OF HDFC BANK………………………………… 3.4 INVESMENT&INSURANCE…………………….. 1... 2.............6 BUSINESS SEGMENT…………………………….... VISION AND BUSINESS STEATEGY…................. 1.. 2...... 2...... PRODUCT OF HDFC BANK………………………………………......5 INTEGRATED FINANCIAL SERVICES………….. 1..... 2..4 AWARDS…………………………………………….

instead of charging the merchants. Cheques and printed paper money appeared in the 1700’s and 1800’s. The history of banking could be said to have started with the appearance of money. meaning bench. The goldsmith realized that they could lend out some of the gold and silver that they had and charge interest. Asia and Africa. SWOT ANAYSIS…………………………………………………. 6 . the goldsmiths paid them to deposit their gold and silver. Receipts given to the Merchant were sometimes used to buy or sell.4. 5. which was handwritten appeared in1661. The bank of Venice was established in 1171 to help the government raise finance for a war. because moneylenders worked on benches in market places. in England merchant started to ask goldsmiths to hold gold and silver in their safes in return for a fee. which extended throughout Europe. The first record of minted metal coins was in Mesopotamia in about 2500B. The ancient Romans developed an advanced banking system to serve their vast trade network.C. the first European banknotes. At the same time. with the metal itself staying under lock and key. as not all of the merchants would ask for the gold and silver back at the same time. with many banks created to deal with increasing trade. Modern banking began in Venice. in Sweden. Eventually. The history of banking in each country runs in lines with the development of trade and industry. and with the level of political confidence and stability. The word bank comes from the Italian word “ban co”. BIBLIOGRAPHY…………………………………………… HISTORY OF BANKING Banking is nearly as old as civilization.

7 . banks merged into larger and fewer groups and expanded into other country. goldsmith were using bank of England notes of their own receipts.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. By 1709. New technology transformed the banking industry in the 1900’s round the world.

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 . Without the intermediary of the banks both their depositors and their borrowers would have to contact each other directly. the objective being to lend money. which is the profitable activity of the three. This means that it acts as a vehicle for moving finance from those who have surplus money to (however temporarily) those who have deficit. Banks play a pivotal role in enhancing each and every sector. In everyday branch terms the banks channel funds from depositors whose accounts are in credit to borrowers who are in debit. They have helped bring a draw of development on the world’s horizon and developing country like India is no exception. 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. This is what has lead to the very foundation of financial institution like banks. Before few decades there existed some influential people who used to land money. Those three are closely related to each other. money transfer and making advances.BANKING STRUCTURE IN INDIA: In today’s dynamic world banks are inevitable for the development of a country. The Bank have developed their roles to such an extent that a direct contact between the depositors and borrowers in now known as disintermediation. Banks fulfills the role of a financial intermediary. This can and does happen of course. Taking deposits generates funds for lending and money transfer services are necessary for the attention of deposits. Banking industry has always revolved around the traditional function of taking deposits.

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. Societies Commercial Banks Indian Foreign Public Sector Banks Private Sector Banks HDFC. State Bank of India and its Subsidiaries Other Nationalized Banks Regional Rural Banks 9 . ICICI etc.

All most all the sector operating in the economy was affected and banking sector is no exception to this. Thus the whole of the banking system in the country has undergone a radical change. 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. from licensing to integration with Global Economics. Slowly the unions grew in strength. The casualty was to the customer service declined. Economy. They mistakenly believed the technology would lead to retrenchment and eventually the marginalization of unions. In the meantime. Let us see how banking has evolved in the past 57 years of independence.INDIAN BANKING INDUSTRY ANALYSIS: The banking scenario in India has been changing at fast pace from being just the borrowers and lenders traditionally. 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. the changes have been swift. the focus has shifted to more differentiated and customized product/service provider from regulation to liberalization in the year 1991. while bank management stagnated. 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. 10 . from planned economy to market. complaints increased and bank management was unable to item the rot.

BANK OF BARODA LTD 6. ICICI BANK LTD 3. FEDERAL BANK LTD 7. STATE BANK OF INDIA LTD 4. It is increasingly becoming clear that the state ownership in bank is no longer sustainable. INDUSIND BANK LTD 11. Assets classification and loan loss provisioning were put in place and capital adequacy ratio become mandatory. The rules of the game under which banks operated changed in 1993. The cumulative impact of all these changes has been on the concept of state ownership in banks. HDFC BANK LTD 2. Norms or income Recognition. But the prevailing accounting practices unable banks to dodge the issue. ING VYSYA BANK LTD 9.The problem faced by the banking industry soon surfaced in their balance sheets. PUNJAB NATOINAL BANK LTD 5. YES BANK LTD 11 . MAJOR PLAYER IN INDIA 1. The amendment of banking regulation act in 1993 saw the entry of new private sector banks and foreign banks. IDBI BANK LTD 10. AXIS BANK LTD 8.


Its outstanding loan portfolio covers well over a million dwelling units. Today. including commercial banking and treasury operations. With its experience in the financial markets. The bank was of 'HDFC Bank Limited'. HDFC Bank began operations in 1995 with a simple mission: to be a “World Class Indian Bank.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. India. 13 . HDFC was ideally positioned to promote a bank in the Indian environment. we are proud to say that we are well on our way towards that goal. The Bank has a network of 1412 branches and 3295 automated teller machines (ATMs) in 528 cities and total employees are 52687. large shareholder base and unique consumer franchise. the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader in mortgages. HDFC Bank Limited (the Bank) is an India-based banking company engaged in providing a range of banking and financial services. 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.” We realized that only a single minded focus on product quality and service excellence would help us get there. HDFC is India’s premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1977. a strong market reputation. as part of the RBI's liberalization of the Indian Banking Industry in 1994. with its registered office in Mumbai.

1412 1725



ATMs (Nos.)
4232 3295



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


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.


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.


He was appointed Chairman of the high level expert committee. 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). Siemens Ltd.Deepak Parekh is the Chairman of HDFC. Mahindra & Mahindra and Indian Hotels Company. a Government of India enterprise for infrastructure projects in 1997. A pioneer in mortgage finance. The Reserve Bank of India appointed him Chairman of the Advisory Group for Securities Market Regulation. A chartered accountant. Deepak Parekh is also the Non-Executive Chairman of Infrastructure Development Finance Company Ltd (IDFC). the country’s leading housing finance company. independent Director of SingTel. Deepak Parekh has been a member of various Committees set up by the Government of India. Hindustan Lever. 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 . After returning to India. formed to recommend measures for strengthening the Unit Scheme – 1964. he worked with Grindlays Bank and also Chase Manhattan Bank as its assistant representative for South Asia. He was promoted as its Managing Director in 1985 and appointed its Chairman in 1993. He is instrumental in making the HDFC a premier housing finance institution in the country. He is also the Non-Executive Chairman of Glaxo India Ltd & Burroughs Wellcome (India) Ltd and on the Board of Castrol BP India. he has enabled scores of Indian middle class people owning their houses or apartments through affordable loans. He is also a non-executive. Deepak Parekh began his career with Ernst & Ernst Management Consultancy Services in New York. 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.

Its outstanding loan portfolio covers well over a million dwelling units. 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. with its registered office in Mumbai. With its experience in the financial markets. large shareholder base and unique consumer franchise. with its registered office in Mumbai. HDFC was ideally positioned to promote a bank in the Indian environment In a milestone transaction in the Indian banking industry. HISTORY HDFC BANK LTD was incorporated in August 1994 in the name of 'HDFC Bank Limited’. HDFC is India's premier housing finance company and enjoys an impeccable track record in India as well as in international markets. World Class Indian Bank 18 . He was also conferred Padma Bhushan by the Government of India. Since its inception in 1977. effective February 26. The bank has grown consistently and is now amongst the leading players in the industry . the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader in mortgages. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. a strong market reputation. The bank was incorporated on 30th August 1994 in the name of ‘HDFC Bank Limited’.. India. 2000. HDFC BANK LTD was amongst the first to set up a bank in the private sector.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. MISSION I. It commenced operations as a Scheduled Commercial Bank on 16th January 1995. Times Bank was merged with HDFC Bank Ltd.

III. giving the customer a one-step window for all his/her requirements. information and advice on various investment avenues. Benchmarking against international standards. BUSINESS STRATEGY I. HDFC Bank’s business philosophy is based on four core values such as:1. professional integrity and regulatory compliance. service levels. People. risk management and audit & compliance VISION STATEMENT OF HDFC BANK The HDFC Bank is committed to maintain the highest level of ethical standards. Product leadership. Operational excellence. Increasing market share in India’s expanding banking Delivering high quality customer service 19 . The objective of the HDFC Bank is to provide its target market customers a full range of financial products and banking services. IV. 2. 3. Customer Focus. To build sound customer franchises across distinct businesses Best practices in terms of product offerings. II.II. 4. technology. The HDFC Bank plus and the investment advisory services programs have been designed keeping in mind needs of customers who seeks distinct financial solutions.

Harish Engineer Mr.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 . Gautam Divan Dr.III. C M Vasudev Mr. Aditya Puri Mr. Renu Karnad Mr. Paresh Sukthankar Mr. Mistry Mr. Arvind Pande Mrs. IV. BOARD OF DIRECTORS PERSON Mr. 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. Ashim Samanta Mr. Keki M. Jagdish Capoor Mr.

Avaya Global Connect 2010 Financial Express .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 .

Runner Up 'BEST BANK IN INDIA' 'Best Domestic Bank in India' 'Best IT Governance Award .Runner up' 'Best Trade Finance Bank in India for 2009 'Best IT Governance and Value Delivery' 22 .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 .


the Bank provides a wide range of commercial and transactional banking services. trade services. including working capital finance. For these customers. etc. The bank has three key business segments: WHOLESALE BANKING SERVICES: The Bank's target market ranges from large. blue-chip manufacturing companies in the Indian corporate to small & mid-sized corporate and agri-based businesses. transactional services. cash management. 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. Based on its superior product delivery / service levels and strong customer 24 . which combine cash management services with vendor and distributor finance for facilitating superior supply chain management for its corporate customers.

the Bank has made significant inroads into the banking consortia of a number of leading Indian corporate including multinationals. Loans against marketable securities. TREASURY: 25 . By September 30. It is recognized as a leading provider of cash management and transactional banking solutions to corporate customers.2 million cards. companies from the domestic business houses and prime public sector companies. information and advice on various investment avenues. The Bank launched its credit card business in late 2001. Net Banking and Mobile Banking. It is also a leading provider of Depository Participant (DP) services for retail customers. 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. 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. The Bank also has a wide array of retail loan products including Auto Loans. mutual funds. 2005. stock exchange members and banks. The HDFC Bank Preferred program for high net worth individuals.000 Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant establishments. the HDFC Bank Plus and the Investment Advisory Services programs have been designed keeping in mind needs of customers who seek distinct financial solutions. providing customers the facility to hold their investments in electronic form. as well as through alternative delivery channels like ATMs. giving the customer a one-stop window for all his/her banking requirements. Personal Loans and Loans for Two-wheelers. The Bank is also one of the leading players in the "merchant acquiring" business with over 50. the bank had a total card base (debit and credit cards) of 5.orientation. The products are backed by world-class service and delivered to the customers through the growing branch network. Phone Banking.

The Treasury business is responsible for managing the returns and market risk on this investment portfolio. the bank is required to hold 25% of its deposits in government securities. and Equities. 26 . With the liberalization of the financial markets in India. To comply with statutory reserve requirements. the bank has three main product areas . corporate need more sophisticated risk management information.Within this business. Local Currency Money Market & Debt Securities. These and fine pricing on various treasury products are provided through the bank's Treasury team.Foreign Exchange and Derivatives. advice and product structures.


If you need money urgently then you can take money from the ATM machine. Phone Banking and Mobile Banking. No matter what a customer's need and occupational status. HDFC Bank not only has the perfect solution for you. Safe deposits lockers. we have a range of solutions that are second to none. Check up on your balances from the comfort of your home or office through Net Banking. bank have confident that person will find the perfect banking solution. accumulating funds over a period of time. Current accounts. With HDFC Bank. Savings Accounts These accounts are primarily meant to inculcate a sense of saving for the future. It includes these services: • • • • • Saving accounts.Banking should be effortless. There are 1977 ATM centers across the country. but also can recommend products that can augment your planning for the future. Whatever person’s occupation. Saving plus Account Introducing the best banking option for you with HDFC Bank Savings plus Account. Whether you're employed in a company and need a simple Savings account or run your own business and require a robust banking partner. the efforts are rewarding. draw Demand Drafts and withdraw cash. Now you can get access to some of the finest banking facilities with HDFC Bank's 28 . There some saving accounts like: - Regular Saving Account: An easy-to-operate savings account that allows you to issue cheques. Fix deposits. Demat account.

Customer can even avail of services like Net Banking. Customer’s funds continue to earn you interest while he enjoys 29 . Senior Citizen Account HDFC Bank appreciates your needs and endeavors. Presenting Savings Max account. which like a dutiful child will help you fulfill your needs in the best manner possible. which offers customer all the basic banking facilities.000/-. they present an account especially dedicated to customer. Mobile banking free of cost. loaded with maximum benefits to make your banking experience a pleasure. which is why.Savings plus Account.you get a host of premium services from HDFC Bank absolutely free. 25.000/. All you have to do is maintain an Average Quarterly Balance of Rs. By maintaining an average quarterly balance of just Rs. bank has introduced the 'No Frills' Savings Account. 10. Saving Max Account Welcome to a world of convenience. 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. No frills Account In an effort to make banking simpler and more accessible for customers.

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


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


offers Payable-At-Par cheque book facility & FREE inter-city clearing transactions across our network up to Rs. 10.a hassle-free account that allows deposit the reimbursements receive from company/organization on a monthly basis. (If person has just joined. 33 . With a vast network of branches in cities all over the country.Business needs a partner who can manage finances while concentrate on growing business. A Current Account with the benefits of accessing account from a large network of branches. Regular Current Account requires to maintain an average quarterly balance of only Rs. It also facilitates FREE NEFT transactions & FREE RTGS collections for faster collections in account. no more receipts to keep track of . To open this account a person has to follow these processes: Procure an Account Opening Document (AOD) from HDFC Bank. Regular current account A Current account is ideal for carrying out day-to-day business transactions. pay using payable at par cheques or deposit cheque at any HDFC bank branch. customer can access account anytime.000. customer can keep track of all transactions anytime.000. mobile. With the HDFC Bank Regular Current Account. and through direct access channels . Form this account customer can avail benefits of inter-city banking account that requires an average quarterly balance of only Rs. first request to company to open up a Salary Account for particular person). and access to a multitude of ATM's.the phone. anywhere. 25. Internet and through the ATM.25 Lacs per month. Reimbursement Current Account No more paperwork.

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. Request company to directly credit cash payments to the Reimbursement Account. RFC – Domestic Account Full name of this account is Resident foreign currency account. 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. during lean seasons. With HDFC Bank Flexi Current Account Cash Deposit and Anywhere Transaction limits are a multiple of the balance you maintain in Current Account. So. Salary Account as well as new Reimbursement Account. person need not worry about maintaining huge balances to enjoy high transaction limits. To open this accounts a person as to follow this process: Choose the currency in which person wish to operate. What’s more. during peak seasons. customer get the benefit of higher transaction limits due to the higher average balances maintained in account. 34 . open Resident Foreign Currency Domestic Account and manage foreign currency efficiently.Mention Salary Account number and Debit Card number on the AOD so that Debit card can be linked to both. Person can choose to set up your account either in US Dollar. Great Britain Pound or Euro. 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.

which person anyway may not need. On maintaining an average quarterly balance of Rs. bank present to world of privileges that helps business expand and grow. Max current account Maximum benefits and minimum hassles for customer with Max Current Account with a Rs. 35 . 10 lacs. With the Apex current account. So. 5 lacs average quarterly balance requirement. An alternative to simply applying for loans. fixed deposits allow to borrow from own funds for a limited period. Fix Deposits Long-term investments form the chunk of everybody's future plans. People always go to that way where he/she can get more benefits and minimum risks. 75. anywhere Banking experience at the APEX is reserved for person who joints this. Apex current account The top position is always the desirable position. free. Flexi Current Account requires to maintain a minimum Average Monthly Balance (AMB) of just Rs. Features like maximum free transaction limits including other beneficial features on this current account truly enhances business potential to the Maximum.000. thus fulfilling needs as well as keeping savings secure. Unlimited. this account makes sure person make the most of every business opportunities coming his way. take business to a new high. for this purpose he has a better chance to deposits money in to the fix deposit. People can invest his/her money into either in security market or gold or mutual fund or into a fix deposits.

1961 subject to necessary declarations taken from the Customer. A deficit in Savings or Current Account is taken care of by using up an exact value from Fixed Deposit.00. and still take advantage of your Fixed Deposits? Then what you need is a Sweep-In Facility on savings account. 36 . it was announced for the first time that Bank fixed deposits booked by an Individual/HUF for 5 years & up to Rs. What's more NO PENALTY if withdraw part of the FD in times of need. 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. Get up to 9. Avail of an overdraft facility of up to 75% of the value of his or her Fixed Deposit. customer will lose interest only for the actual amount that has been withdrawn. Flexibility. Sweep-in facility Do you wish to avoid taking overdrafts. 1. Five year tax saving fix deposit In 2006. Since deposits are broken down in units of Re 1/-. now is the time to invest money in HDFC bank Fixed Deposit.000/.If people believe in long-term investments and wish to earn higher interests on his/her savings.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. Security and High Returns all bundled into one offering. Link Fixed Deposit to Savings or Current Account and use it to fall back on in case of emergencies.50% for Senior Citizens.75% on HDFC Bank Fixed Deposit with an additional 0.

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.Demat Account Nowadays share market is becoming is the main occupation of the person. firms. societies. 37 .e. clubs. Large and Extra Large with varying rents. i. Advantages of safe deposit locker in HDFC bank • • Wide Availability. etc may hire a locker. Located at select branches in cities all over the country. HDFC BANK is one of the leading Depository Participant (DP) in the country with over 8 Lac Demat accounts. Medium. associations. bank’s lockers ensure the safe keeping of valuables. Small. HDFC Bank Demat services offers a secure and convenient way to keep track of securities and investments. without the hassle of handling physical documents that get mutilated or lost in transit. Safe Deposit Lockers A Safe Deposit Locker with HDFC Bank is the solution to person’s fear. Eligibility An individual (not minor). limited company. trusts. over a period of time. HDFC BANK is Depository participant both with -National Securities Depositories Limited (NSDL) and Central Depository Services Limited (CDSL). Lockers available in various sizes.

Loss of Key is to be immediately informed to the concerned Branch. the nomination shall be made by a person lawfully entitled to act on behalf of the minor. Rent is payable in advance. Lockers can be allotted individually as well as jointly. 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. Nomination facility is available to individual hirer of Safe Deposit Locker. No deposits are required to avail a locker. 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. LOAN In today’s competitive world every thing happens only with the help of money or through the money every person need money. But some time a person has not cash 38 . There is a nominal annual charge.• • • Lockers are rented out for a minimum period of one year. Where the safe deposit locker is hired in the name of a minor. which depends on the size of the locker and the centre in which the branch is located. In the case of a sole hirer of a safe deposit locker. nomination can be made in favor of only one individual. Just open an account and get the locker facility.

As person ordered in the hotel for tea or coffee and it is immediately came fast. HDFC Home Loans. So. help people realize dream. Lone dose not mean that only lower class person needs it but also upper class person it is needed. Home loan HDFC Bank brings HDFC home loans to doorstep. same over here any person want to get a personal loan with the nominal documents he can get the loan. 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. so personal loan can be helpful in this entire requirement. As per the requirement of the every person there are much type of loans are there in the HDFC bank. here one solution for that person this is personal loan. But 39 . Vehicles loan Nowadays the life is being so fast. From this he/she can fulfill their needs or requirement. a dedicated team of experts and a complete package to meet all housing finance needs. 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. With over 30 years of experience.

The procedure is simple. and free net banking phone banking services. Gold loan With HDFC Bank's Gold Loan. There is also availability of the overdraft on the gold jewellery. Educational loan 40 . There are many types of vehicles loan. person can get an instant loan against gold jewellery and ornaments. So. Commercial vehicle loan. The procedure is simple.every people have no capacity to purchase vehicles with cash so for that here in the HDFC bank vehicles loan is available. School admission or also in the family holiday. documentation is minimal and approval is quick. Thus as per the need of different people there are vehicle loans available. A person can get 70% loan on the value of the gold jewellery and ornaments. Used car loan. free international debit card. Types of vehicles loan: • • • • • Two wheeler loans. And commercial businessman can get the benefits of the commercial vehicles loans. New car loan. Express loan plus Bank offer Express Loans Plus at person Doorstep to help fulfill all his/her needs. With this a customer can get free additional services like free personalized cheque book. And also terms and condition are different as per the requirement. 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. Tractor loan (for agree culture business). It is helpful to person in repairing of house.

person can get an overdraft against securities like Equity Shares. NSC. Loan against security With HDFC Bank's Loan against Securities. US64 Bonds. Insurance Policies. FMPs). dividends and bonuses Loan available to NRIs against Shares.Nowadays important of education becoming very high. A person can get loan up to 10 lacs to study in India and 20 lacs if he wants to study in abroad. Policies issued by LIC & Select Private Insurance Companies. Mutual Fund Units(Equity. Loan against property HDFC Bank brings Loan Against Property (LAP). UTI Bonds (ARS & US64 Bonds) and Gold Deposit Certificates. there is education loan is also available for the student. NSC. So. plan a dream wedding. Debt. Exclusive Telegraphic Transfer facility available for courses abroad. He can depend on bank to meet all his business requirements even to purchase a new shop or office for business. NABARD's Bhavishya Nirman Bonds. while still retaining ownership. KVP. to expand his business. Gold Exchange Traded Fund(ETF). and fund his child's education and much more. And the best part is that he can continue to enjoy all his shareholder benefits such as rights. As it important becoming high it is becoming costly. Loan to purchase Commercial Property (LCP) is a specially designed 41 . and KVP. FMPs). It is released as per fee schedules of institutes. Person can now take a loan against residential or commercial property. Loans disbursed directly to the educational institution. So in the higher education some time people can not effort a high price at a same time. Debt. Mutual Funds (equity. Loans available for short duration/ job oriented courses also. Loan available up to tenure of 7 years including moratorium period.

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. If a person wanted fulfills his wants he can get benefits from the HDFC bank’s credit cards facilities. he will find a card that suits him. So whether persons are looking to add to his buying power. or budgeting his expenditure.product to help person expand his business without reducing the capital from his business. a diamond ring for wife's dreams. Credit cards A person wants many things like. a trip to Bali. 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. Bank ranges of Cards help to meet financial objectives. 42 . Some dreams can't wait. Health Plus Credit Card. Value plus Credit Card. If there's something person has always wanted. conducting cashless shopping. Different types of credit • • • • Classic cards Silver Credit Card.

Types of debit card: • • • • • • • • • Classic card Easy shop international Debit card. Prepaid card Besides offering convenience. 43 . Premium card Easy shop gold Debit card. Easy Shop NRO Debit Card. Easy Shop Woman's Advantage Debit 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. Prepaid Cards have been tailored to answer travel and gifting needs. Specialized card Easy Shop International Business Debit Card. Kisan Card.

but some time he is in to the difficult situation. Food Plus Cards Prepaid Food Plus card. Types of investment: - Mutual Funds Invest through the Mutual Fund route to meet varied investment objectives.• • • • • • • • ForexPlus Cards Prepaid Travel Card. Person invest their money in to various schemes or in to the gold or share market etc. Insurance 44 . Gift Plus Cards Prepaid Gift Card. Money Plus Card The Corporate Payment card INVESMENT AND INSURANCE Nowadays a ward investment is becoming more popular. for that bank help person invest wisely through financial and investment services.

HDFC Loan Cover Term Assurance Plan. HDFC Unit Linked Young Star Suvidha. HDFC Savings Assurance Plan. HDFC Unit Linked Endowment Plus II. Financial Planning Start Now Plan investments to meet financial goals Knowledge Centre Profit from research and make informed investment decisions. HDFC Endowment Assurance Plan. HDFC Single Premium Whole of Life Insurance Unit Linked Plans HDFC Unit Linked Young Star Plus II. HDFC Money Back Plan. HDFC Unit Linked Young Star Suvidha Plus HDFC Unit Linked Pension. HDFC Unit Linked Endowment Suvidha. HDFC Unit Linked Pension Plus. Bonds A secure investment avenue giving stable returns with tax benefits.Traditional Plans HDFC children's PLAN. HDFC Assurance Plan. HDFC Term Assurance Plan. 45 . HDFC Unit Linked Endowment Suvidha HDFC Unit Linked Enhanced Life Protection GENERAL AND HEALTH INSURANCE Complete protection for business. health. travel & more.

If people need to deal in foreign currency and keep tabs on exchange rates every now and then. make payments etc. efficiently and in a timely manner.. FOREX AND TRADE SERVICE Nowadays businesses becoming worldwide e. transfer monies to India. Bank offering following Foreign Exchange Products and Services. 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. Foreign Exchange and Trade Services 46 . Mudra Gold Bar Buy 24 Karat gold bars made in Switzerland and certified by Assay.Equities & Derivatives Leverage bank’s vast information repository and transact online. HDFC Bank has a range of products and services that people can choose from to transact smoothly.g.

With HDFC Bank's payment services. Important guidelines and schedules. Depending on the nature of transaction or point of travel. but they have to payment for something so for that reason bank’s payment services become started.The following are different methods of transacting in Foreign Exchange and remitting money: • • • • • • • • Travelers Cheques. Forex Services Branch Locator. Trade Services. PAYMENT SERVICE Nowadays life of a person become very stressful and he/she becoming busy with their own business. Bank’s range of payment options make it easy for pay for a variety of utilities and services. people will need to understand his Foreign Exchange limits. Foreign Currency Drafts. Verified By Visa 47 . All Foreign Exchange transactions are conducted by strictly adhering to RBI guidelines. Remittances. Cheque Deposits. person can bid goodbye to queues and paper work. Foreign Currency Cash. Cash to Master.

Bill Pay Pay your telephone. our comprehensive bill payments solution.Do you want to be worry free for your online purchases. Merchant Services Accept all Visa. Net Safe Now shop online without revealing your HDFC Bank Credit Card number. Through the Internet. you can now recharge your Prepaid Mobile Phone with this service. electricity and mobile phone bills at your convenience. credit and Debit cards at your outlets through state of the art POS Machines or through your website and experience hassle free payment acceptance. you can now use your HDFC Bank Debit Card also for online purchases.with Bill Pay. ATMs. 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 . Prepaid Mobile Refill If you are an HDFC Bank Account holder. your mobile phone and telephone . Now you can shop securely online with your existing Visa Debit/Credit card. What more. MasterCard.

Use your HDFC Bank Credit Card to pay your utility bills online. e-Monies National Electronic Funds Transfer Transfer funds from your account to other Bank accounts across India . make subscriptions and donations.FREE of cost. Online Payment of Excise & Service Tax Make your Excise and Service Tax payments at your own convenience through HDFC Bank's Net Banking facility. Direct Pay Shop or Pay bills online without cash or card. 49 . no registration required. Insta Pay Pay your bills. 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. Religious Offerings Now donate to your favorite temple easily and securely using HDFC BANK's Net Banking. make donations and subscribe to magazines without going through the hassles of any registration. Enjoy credit free period and reward points as per your credit card features.

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. so that the whole world can see.IMPERIA/PREFERRED/CLASSIC BANKING As a special customer bank providing a TAJ to customer with name imperia/preferred customer. So for this reason HDFC bank playing a good role in the customer’s life for their monitory transaction. the Government of India introduced in 1970 Non-Resident(External) Account Rules which are governed by the Exchange Control Regulations. 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. pampering with services those others can only dream about. 50 . It makes you feel special at every step. HDFC Bank's preferred/imperia Programme is the royal decree that enhances the exclusivity that you are accustomed to. This service goes beyond the obvious. the grandeur and magnificence of royalty is alive and well. rises above the expected. that even today.

NRE (Non Resident External Accounts) It can be in the form of Savings. etc. The funds in this account are not repatriable (only interest accrued is repatriable).The funds held in Non-Resident (External) Accounts (NRE Accounts) qualify for certain benefits like exemptions from taxes in India. NRO (Non Resident Ordinary Accounts) It can be in the form of Savings. The funds in this account are fully repatriable. and Japanese Yen. FCNR (Foreign Currency Non Resident Accounts) It can be in the form of fixed Deposits only. 51 . Current or Fixed Deposits in Indian Rupees. Euro. in the five major currencies. GBP. The funds in this account are fully repatriable. free repatriations facilities. namely US Dollars. DM. Current or fixed deposits in Indian rupees. Deposit types NRI-Banking facilitates the NRI customer to open the following account types.

Corporate service Corporate Banking reflects HDFC Bank's strengths in providing our corporate clients in India. real estate developers and investors. • • • 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. a wide array of commercial. Bank also understands that business is anything but "small" and as demanding as ever. which may lead to purchasing new. 52 . which is the provision of banking services to individuals. services. Also included is banking services offered to other financial institutions. such as pension funds and government entities/agencies. In essence. wholesale banking services usually involve high value transactions. That's why HDFC Bank has assembled products. mid-sized companies. Wholesale banking compares with retail banking. transactional and electronic banking products.WHOLESALE BANKING Wholesale banking is the provision of services by banks to the like of large corporate clients. resources and expert advice to help ensure that your business excels. or updating existing plant and equipment. or employing new staff to cope with the demand. person need to keep pace with the growing requests that come in. And as business expands and enters new territories and markets. international trade finance businesses and institutional customers. We achieve this through innovative product development and a well-integrated approach to relationship management.

These services include: Tax Collection wherein customers can directly pay their taxes like Direct taxes. Financial Institutions. Indirect taxes and Sales Tax collections at their local HDFC Bank. Insurance Companies. Value Added Services. Government sector HDFC Bank acts as an active medium between the government and the customers by means of various services. Non-Funded Services. Stock Brokers. Mutual Funds. Financial Institutions & Trusts HDFC Bank provides financial services to: • • • • • • • Banks.The following links will help identify individual needs. Trusts. Specialized Services. 53 . • • • • • Funded Services. Commodity Businesses. E-Ticketing - Helps the customer by providing him a direct access to book a Railway Ticket online and get it home delivered. Internet Banking.

Panvel. Nagpur. Mira Road. is undertaken by the Bank.e. Collection of levies and taxes on behalf of Municipal Corporations i. 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). Pune(FC Road). thus facilitating imports for the Government. 54 . Thane (Talao Pali). Ratnagiri. Mints and Presses. Kalyan -Dombivli Municipal Corporation. Collection of stamp duty Maharashtra & Gujarat. Electronic Collection of fees on behalf of DGFT is done by the bank too. Chembur. Lower Parel.Opening of L/C's is done by the bank on behalf of Government of India. is done via franking mode in the state's of The Stamp Duty Franking Facility is available at following branches in Maharashtra Fort. Pimpri. Kolhapur.


select. i.. HRM is concerned with the people’s dimension in organizations.HUMAN RESOURCE DEPARTMENT “Human Resource Management function that helps managers recruit. Obviously.management of managers and management of workers. Ø He takes the decision related to the recruitment. there is one common element. I. The essential ingredient of management is the leadership and direction of people. manpower management function is becoming increasingly specialized. Human capital is the greatest asset of a business enterprise. Work force of an Organization is one of the most important inputs of components. In a sense. Ø Take decisions for approval regarding leave notes. shortlist the candidate and takes the first round of the interview. It is said that people are our single most important assets. Responsibilities of Human Resource Department. He also does screening of the candidates. and not mere direction of material resources. He talks to the consultant related to the recruitment of the qualified candidates. 56 . The personnel function or system can be broadly defined as the management of people at work. Management is the development of people. train and develop members for an organization. behavior and attitudes of men and women at work. in all business concerns. Human personnel function. management is personnel administration. Each manager of people has to be his own personnel man.e. 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. selection and training of the candidates. Ø HRD maintain daily attendance record through branch manager via E-mail. Personnel function is particularly interested in personnel relationship and interaction of employeeshuman relations.e.

the Human Resource department from each Branch receives the requirement for the person for whole year. He also completes the joining formalities of each new employee. Sources of Recruitment Ø Personal data of candidates and data bank maintain by the HR. Recruitment Recruitment is a process of searching for prospective candidates for the given job in the industry. And so it needs to encourage this type of right candidates whenever they require. At the end of the year. Ø He is responsible for the monthly salary of the employees as per their attendants and passing to the Branch Manager. department Ø Campus Recruitment. 57 .Ø He maintains the database of the candidates to come for an interview. For this purpose an organization need to search for the right candidate. 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. He also maintains personal file of each employee. Then the planning of recruitment and training is done by training manager and recruiting manager which is approved from Head of HR Department. Every organization needs employee time by time because of promotion or retirement of an employee. Ø They are taking surprising visit in every branch and collect information about employees. Human Resource planning This is handled by doing the planning at the beginning of every year.

Ø Company’s own website. Ø Advertisement in the news papers like Times of India. Ø Placement consultants. 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. Gujarat Samachar. A new and changed technique may be taken as an advantages and improvement affected in the old methods. 58 . Ø Selection is based on probation base. It makes employees more effective and skillful. is taken by head office at Mumbai. skills and abilities of workers to perform specific job. In present dynamic world of business training is more important there is an ever present need for training men. Ø Employee reference. Training and Development Ø Training aims at increasing the aptitudes. 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. Ø While the selection of the senior level post. 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 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. Remuneration occupies an important place in the life of an employee. 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 To appraise the performance of the employee they have developed a credit system on the basis of the given target to the employee. 59 . Whenever they select new candidates for any post. 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. 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. 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. After appraising the performance of the employee they put the grade of each employee in the following grade criteria. they use to give them on the job work.Ø Training is learning experience that seeks relatively permanent change in an individual that will improve his/her ability to perform on the job. Ø In case of sales persons to distribute their various products.

Ø Sales executives (coax) are being given salary of 6000 to 8000 per month. Employees benefit The employees of HDFC automatically become HDFC bank salary account Holders with special benefit and privileges and receive instant salary credit. The bank is in service industry so the salary is given on monthly basis. They use to hire certain salesman on commission base and they are provided their salaries on commission base. They have developed the incentive structure for the employees on the basis of point system. • Incentive are provided well by In HDFC. remuneration of an employee comprises – wages and salary. employees get incentives on the basis of the target given to each employee and their area of work. As HDFC bank is reputed bank in market the pay scale are as per the standard. incentives. • Wages and Salary Ø A part from various incentives and benefits. The salary of branch manager is around 35000 per month. For all this. HDFC bank is also giving attractive incentives as per the target. All the employees get the incentive in the form cash reward. it is required that wages and salaries organization. A proper compensation in terms of this is necessary for motivation employees for their continuous improved performance. A wage and salary is the remuneration paid for the service of labor in production periodically to an employee. The benefit 60 .Ø At HDFC. the personnel are compensated only in terms of wages and salaries. While other permanent staff are being given monthly salaries. While sales officer’s salary ranges from 15000 to 18000 per month. Ø Wages and salary refers to the establishment and implementation of sound policies and practices of employee’s compensation.

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. corporate card with individual liability (CCIL). access to phone banking and internet banking. Firstly. In practice. Every employee is free to talk to the head of the particular department if they have any problem related to the job. like branch manager or team manager for better performance in the department. Disputes and their resolution Disputes are common in organization. and host of other services to complement their savings account. 61 . 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. demat accounts. Bank’s salary account.include international debit card. Motivation is given by the responsible person. 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.


celebrity endorsements and general media exposure. 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. as these concepts are relatively new to people living in smaller towns and cities. People who work in marketing departments of companies try to get the attention of target audiences by using slogans. HDFC has chartered an extensive Customer Lifecycle based marketing campaign calendar for this and the forthcoming fiscal. Marketing. Ajay Kelkar. It includes advertising. 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." said Kelkar. 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. "We are going to demonstrate the advantages of net banking and mobile banking. which from a functional point of view gives the team a stronger voice. packaging design. Fractal. selling and delivering products to people. would be partnering 63 . The bank has also launched another initiative called Business Ki Baten. Bank can measure the result of a campaign through the sales that they generate and the customers that are added. which specialises in predicting the behavior of the customers in the areas of risk and marketing. 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. Head.Marketing Management The activities of a company associated with buying and selling a product or service. HDFC Bank. which is targeted at areas where the bulk of the population comprises small businessmen.

etc. experimenting with creatives. using marketing automation technology provided by Unica.HDFC Bank's marketing team in various initiatives of growing the retail business quickly and cost effectively. Fractal will also help the bank solve the problem of ever-increasing customer acquisition costs and reducing customer loyalty. messages. Through this tool. The marketing programmes would involve acquisition of customers profitably by reducing campaign costs. and one of the very few in Asia. HDFC has been using analytics for taking informed marketing decisions. the bank also conducts event-based marketing These initiatives also complement our media-based marketing as well as on-theground marketing activities. However. lifecycle. we have been able to intelligently use the 4-5 terabytes of customer data available in its warehouse. We have set up a team to conduct marketing campaigns in a scientific manner using customer data. cross selling various asset and liability products to the existing customers. media. testing every campaign every step of the way. thereby. Fractal will help the bank use information to reach new customers and to build. Unica has been recognised by Gartner as the leading player in this field. the marketing analytics initiative enables us to measure the efficacy of the campaigns. leveraging the existing relationships and proactively retaining existing customers. is expected to give HDFC an upper hand in understanding the needs and circumstances of their customers. 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. nurture and maximize lasting customer relationships. preferences. There are learnings that can immediately be 64 . Marketing Initiatives Taking By The Bank HDFC Bank is possibly the only bank in India. to have embarked on a data-led marketing analytics campaigns initiative. which remain important in the bigger scheme of things. usage patterns. etc.

it responds similarly to a market stimulus and it can be reached by a market intervention. it is homogenous within the segments (exhibits common attributes). making those more effective . in a market into different groups. It is a key ingredient for successful marketing as it simplifies the targeting. A true Market Segment meets all of the following criteria: it is distinct from other segments (heterogeneity across segments).absorbed and incorporated in the next campaigns. or segments. and these campaigns in a way provide us with information about customer choices and preferences that can be used for mass media communication. within which the customers share a similar level of interest in the same or comparable sets of needs satisfied by a distinct marketing proposition. Market Segmentation Market Segmentation is defined as the process of splitting customers. pricing. it is also explained as a marketing technique that targets a group of customers with specific characteristics. Market Segmentation simplifies the firm’s product. or potential customers. it can be targeted separately from other segments of the market.e. 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 . a particular group that has its own distinct customer profile and buyer characteristics so that for marketing purposes. promotion and distribution strategies and also facilitates planning and organizing function of management more easily and cost effectively. positioning and the planning process. e-mails. Media Vehicles Used For Send Message To Reach Target Audience HDFC Bank has been predominantly using direct mailers. but it requires a 65 . i.

external opportunities and threats. Philip Kotler mentioned five criteria for an effective segmentation which states that Segmentation should be: 1. taste and preferences (Psychological Segmentation). global perspective. 3. demographic environment. dislikes. It is referred as a tool for defining markets and thereby allocating resources. and various others factors like the mission. likes. social and cultural factors. values. norms and standards of the organization. on the basis of lifestyle. as well as the competitors strategy. Accessible: . and according to the history.thorough understanding of the customers needs. vision. 2. loyalty and responsiveness (Behavioral Segmentation). gender and other measurable factors (Demographic Segmentation).it should justify the expected profits and the growth potential. technological and political / legal aspects before deciding their own niche. their internal strengths and weaknesses. Relevant: .it should be possible to determine the values of the variable used for the segmentation. A business must analyze the different needs of the market segments.the target customers must be reachable and servable for the organization.the target audiences must be diverse and able to show different reactions to different marketing mix. Feasible: . 4. economic environment. it uses statistical techniques called factor analysis and cluster analysis to combine attitudinal and demographic data to develop segments that are easier to target. Market Segmentation can be done on the basis of the location (Geographic Segmentation).the firm must have an ability to draw an effective marketing 66 program for its customers. . on the basis of age. attitudes. 5. income. Measurable: . Distinguishable: . beliefs.

gender. economic. As HDFC bank is a service sector industry they introduce different schemes for different people. technological.Market segmentation is an effort to increase a company’s precision marketing. whereas. A market segment consists of large identifiable group within a market with similar wants. demographic. Internal environment includes the mission. 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. Which are as follows: STEP 1: .The factors that influence Targeting are the Internal and External Environment. buying attitudes or buying habits. It is mainly defined by age. purchasing power. liquidity. it can also be customer / product / competition related segmentation). political. political and 67 . tax benefits etc. task. return. or any other combination of demographics. cultural. geography. global. vision. Each person is different in nature and each have differ criteria for investment like risk factor. STEP 2: . External factors are the social.Identify the potential buyers: .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. natural. A product focusing on a specific target market contrasts sharply with one. socio-economic grouping. economic and social factors. following the market strategy of mass marketing”. Targeting can be done by the firms by adopting a logical and systematic methodology / steps. values and objectives of the firm.Select the target audiences: . Target Marketing “Market Specialization is a business term meaning the market segment to which a particular good or service is marketed.

psychological.Proper positioning of the Product: . promotion. 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. you position the product in the mind of prospect. service. Price. people. A piece of merchandise. image. market. gain competitive advantage and place the brand in the customers mind to enhance their goodwill and become the most preferred brand. Positioning is what you do the mind of the prospect. an institution. Positioning can be in the form of product. But positioning is not what you do to a product. Targeting is deciding the potential buyers. publicity. Positioning starts with a product. 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 . positioning strategy can be worked out effectively. HDFC bank have positioning strategy of “Continuing a Tradition of Trust”.legal environment. geographic and behavioral information of the buyer. distribution channel. products to be offered and appropriately positioning each product to the segment. a company. or even a person. That is. it must communicate that positioning effectively. Positioning enables the firm to create a positive image. public relation or selling differentiation. price. a service. advertising. STEP 3: . and competitors change over time. Once the company has developed a clear positioning strategy. A company’s differentiating and positioning strategy must change as the product. Place and Promotion and obtain the demographic. Through appropriately compiling the customers profile to decide the 4 P’s – Product. It is accurate positioning strategy because it signifies a trust with its clients.After developing an appropriate segmentation and target strategy.

scheme which suit their needs. FINANCIAL DEPARTMENT 69 . In this way it continues to maintain a trust with its clients.

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. The company should use to keep proper planning for the finance of its own and also of the large no.e. There are different types of organizational structure such as group organization. line organization. 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. it is very difficult task to raise funds from market. For the bank as it is a Financial Institution we can consider finance as lifeblood of this business. of depositors who are there with the bank. As in recent it is popular “No finance no business”. for the bank “Finance itself is business”. its chief Financial Officer and Treasurer manage the finance. But now a days it is not so. Due to proper policies and separate management the company can have proper operation of finance. 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. HDFC Bank has line of authority and line of authority is vertical i. authority passes from top to bottom and responsibility passes from bottom to top level management. The company should manage to get sufficient finance. 70 . line and staff organization. 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. In HDFC Bank. As current position of the market is totally different from ancient where it was very easy to get the finance.INTRODUCTION OF FINANCE DEPARTMENT In this modern era it is very easy to know how much important the finance is in the business.

607.726.386.81 5.44 2.55 2009 – 10 16.48 6.883.10 21.477.95 1.28 153.172.646.270.44 6.879.421. 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 .911.332.30 8.62 .93 142.43 3.938.09 16.77 98.290.73 2.811. company has to appoint many different persons so that there is proper maintenance of the funds of different persons is possible. FINANCIAL HIGHLIGHTS Rs.458.711.24 1.786.948.90 7.10 7.80 14.70 167.429.57 125.830.26 8.59 58.054.05 58.58 222.61 12.76 5.353.807.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.140. There we need of concrete and proper policies to have proper management of it. So.71 1.21 5.66 4.194.58 6.299.60 10.93 201.244.60 3.59 1.519. Because of big size of the bank one cannot manage all the accounts of it alone.31 2.817.340.289.404.33 183.14 1.764.16 3.532.178.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. 10 Lac = Rs.12 1933.60 16.42 67.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. on a test basis.31 973.00 22. 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. 1 Crore = Rs.44 % 12.62 Auditor's Report on Financial Statements To The Board of Directors. 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.58 % 15.50 28.72 % 470. An audit includes examining.85 16. Our responsibility is to express an opinion on these financial statements based on our audit. 10 Million **Proposed *Source: NSE 52.12 % 10. We conducted our audit in accordance with auditing standards generally accepted in India.40 18. evidence supporting the amounts and disclosures in the financial statements.26 % 17.17 % 344.00 ** 21.80 % 13.69 % 10. 1 Million Rs. An audit also includes assessing the 72 .

We believe that our audit provides a reasonable basis for our opinion. Accounting for Investments in Associates in Consolidated Financial Statements issued by the Institute of Chartered Accountants of India. We did not audit the financial statements of one of the subsidiaries. and our opinion is based solely on the report of the other auditor. 32. 3. of the state of affairs of the group as at 31 March 2010. total revenue of Rs.740 Thousands for the year then ended. (i) in the case of the consolidated balance sheet.371. 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. whose financial statements reflect total assets of Rs. (ii) in the case of the consolidated profit and loss account. 618. These unaudited financial statements reflect the Group’s share of net profit of Rs. as well as evaluating the overall financial statement presentation. These financial statements and other financial information have been audited by other auditors whose report has been furnished to us. 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. of the profits of the group for the year ended on that 73 .656 Thousands for the year then ended.474 Thousands as at 31 March 2010.353.accounting principles used and significant estimates made by the management.099 Thousands and net cash inflows amounting to Rs. 2. We have also relied on the unaudited financial statements of certain associates provided by the management and included in the consolidated financial statements. 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. Consolidated Financial Statements and Accounting Standard (AS) 23. and to the best of our information and according to the explanation given to us.

SolutionNET India Private.date. March 31. of the cash flows for the group for the year ended on that date.0 95. The consolidated financial statements present the accounts of HDFC Bank Ltd. * SolutionNET India Private Ltd. and (iii) in the case of the consolidated cash flow statement.4 29. HBL Global Private Ltd. 74 . 2010. 2009.0 Nil 12. Atlas Documentary Facilitators Company Private Ltd. with its following subsidiaries and associates : Name HDFC Securities Ltd.e. Ltd.0 29. Relation Subsidiary Subsidiary Associate Associate Associate Associate Associate Associate Country of Incorporation India India India India India India India India Ownership Interest (%) 59. ceased to be an associate with effect from May 5. i.* Softcell Technologies Ltd.3 29. International Asset Reconstruction Company Private Ltd. HDB Financial Services Ltd. Centillion Solutions and Services Private Ltd.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.

Consolidated Balance Sheet As at March 31. 2010 75 .

2010 76 .Consolidated Profit and Loss Account As at March 31.

2010 77 .Consolidated Cash Flow Statement As at March 31.

Consolidated Cash Flow Statement As at March 31. 2010 78 .


80 .

81 .

82 .

83 .

84 .

85 .

which together constitute the ‘Group’. the Bank accounts for investments in associates in accordance with AS-23. Borrowing costs on repo transactions are accounted for as interest expense. if the former is lower than the latter. the bank lends monies against incoming pledge of securities. (the Bank). Further. its subsidiaries and associates. liabilities. Accounting for Investments in Associates in Consolidated Financial Statements. is provided as a loss in the income statement. In respect of repo transactions outstanding at the balance sheet date. the bank borrows monies against pledge of securities. The securities purchased are debited to the investment account at the 86 . 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. The book value of the securities pledged is credited to the investment account. Principles of Consolidation: The consolidated financial statements comprise the financial statements of HDFC Bank Ltd. In a reverse repo transaction. The Bank consolidates its subsidiaries in accordance with AS-21. by the equity method of accounting. issued by the Institute of Chartered Accountants of India. Consolidated Financial Statements. Repo and Reverse Repo Transactions: In a repo transaction. B.NOTES ON PRINCIPAL ACCOUNTING POLICIES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS A. the difference between the sale price and book value. income and expenditure. issued by the Institute of Chartered Accountants of India on a line-by-line basis by adding together the like items of assets.

The provision is based on an independent external actuarial valuation at the balance sheet date. Provisions are made only in case of permanent diminution in the value of investment. monies paid to RBI are debited to investment account and reversed on maturity of the transaction. Current investments are valued at lower of cost and net realizable value. Provision is made to recognise a diminution. Revenues thereon are accounted as interest income. HDFC Securities Ltd. The Company provides for compensated absences in accordance with AS-15 (revised 2005) Employee Benefits. Costs thereon are accounted for as interest expense. All investments of long-term nature are valued at cost.market price on the date of the transaction. In respect of reverse repo transactions under LAF. Investments which are long term in nature are stated at cost. monies borrowed from RBI are credited to investment account and reversed on maturity of the transaction. Compensated Absences The Company does not have a policy of encashment of unavailed leaves for its employees. whichever is lower. HDB Financial Services Ltd. In respect of repo transactions under Liquidity Adjustment Facility with RBI (LAF). C. Current investments are valued at cost or market value. in the value of long-term investments. Revenues thereon are accounted as interest income. other than temporary. 87 .

PSBD. Geographic Segments Since the Group does not have material earnings emanating outside India. The appointed date of the merger was April 1. 2008. Accordingly 6. 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.01. and was effective from May 23.e. the Group is considered to operate in only the domestic segment (India). (‘HDFC Bank’ or ‘the Bank’) under section 44 A (4) of the Banking Regulation Act. Both the entities were banking companies incorporated under the Companies Act. Merger of the Centurion Bank of Punjab Limited During the year ended March 31. 10/.each fully paid-up was issued to members of the eCBoP for every twenty nine equity shares of the face value of Re. 16197/16. 1/. 1956 and licensed by the RBI under the Banking Regulation Act. one equity share of HDFC Bank of the face value of Rs.08 dated May 20.each of HDFC Bank were allotted at par to the shareholders of CBoP vide board resolution dated June 24. the entire undertaking of CBoP including all its assets and liabilities stood transferred / deemed to be transferred to and vest in HDFC Bank. 2009 the Centurion Bank of Punjab got merged with HDFC Bank Ltd. 2008.D.956 equity shares of Rs. June 16. 2008.98. in consideration of the transfer of and vesting of the undertaking of CBoP. 10/.each of CBoP held by them on the record date i. 2008. E. upon its coming into effect from the appointed date i.131/2007. 2008 was sanctioned by the RBI vide their order DBOD No. April 1. 88 . The Scheme of Amalgamation (‘the Scheme’) of Centurion Bank of Punjab Limited (‘CBoP’ or ‘eCBoP’) with HDFC Bank Ltd.83. 2008. As per the Scheme. 2008. 1949 which was approved by the shareholders of both the banks on March 27.e. 1949. As per the Scheme.

2008 till May 22.83. 2008. After accounting the assets. Such adjustments. a surplus of Rs.03 lacs arose. 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 (69.089. 2008 and provisions arising out of harmonization of accounting policies and estimates. 1.82 (690. as approved by the Board of Directors of HDFC Bank and as prescribed in the Scheme. (Rs.98.801.88) (218. Accordingly. were made for the difference between the net value appearing in the books of CBoP and the value as determined by HDFC Bank. 89 . 2008 were accounted at the values at which they were appearing in the books of CBoP as on March 31. as per the Scheme. Also the Bank provided for merger related expenses on a best estimate basis.03) 1. lacs) Particulars Net Assets of eCBoP as on the reporting date of merger* Less : 6. liabilities and reserves of CBoP and after effecting the above adjustments.85 *Net assets taken over on April 1. 2008 adjusted for options allotted by eCBoP between April 1.956 equity shares of face value of Rs. which was credited to Amalgamation Reserve in accordance with the Scheme.15 ) (288.049.62) (62. the assets and liabilities of CBoP that vested in HDFC Bank as on April 1.049.The amalgamation has been accounted using the pooling of interest method.03 Amoun t Amount 2. were made by the Bank against the reserves arising on amalgamation.17) 1.

HDFC Trustee Company Ltd.65 lacs (previous year : Rs.003. 65 lacs) and Investment Reserve Account (Rs. However the balances in Profit and Loss Account (Rs.02 lacs) have been credited to Amalgamation Reserve in accordance with the scheme. Related Party Disclosure.248. G.60 lacs). HDFC Developers Ltd. HDFC Standard Life Insurance Company Ltd. 1. Securities Premium Account (Rs. GRUH Finance Ltd. 90 .As per AS-14. As a result the balances in these accounts are lower by the aforesaid amounts. F. Capital Reserve (Rs. HDFC Holdings Ltd. Enterprises under common control of the promoter HDFC Asset Management Company Ltd. 7. the Bank’s related parties are disclosed below : Promoter Housing Development Finance Corporation Ltd.99 lacs) and the weighted average number of equity shares outstanding during the year amounting to 436.354. 246.754.439. if the amalgamation is an “amalgamation in the nature of merger”.49 lacs). 2.825). HDFC Investments Ltd. 3. Related Party Disclosures As per AS-18. Earnings Per Equity Share Basic and Diluted earnings per equity share have been calculated based on the net profit after taxation of Rs. issued by the Institute of Chartered Accountants of India.573 (previous year : 424. the identity of reserves of the amalgamating entity is required to be preserved in the books of HDFC Bank. Accounting for Amalgamation.

HDFC Ergo General Insurance Company Ltd. Ltd. (ceased to be an associate from May 5. Director Harish Engineer. 2009) International Asset Reconstruction Company Pvt. Ltd. HBL Global Pvt. HDFC Venture Capital Ltd. Ltd. 91 . Ltd. Ltd. Key Management Personnel Aditya Puri. 2009) Softcell Technologies Ltd. HDFC Property Ventures Ltd. Managing Director Paresh Sukthankar. (ceased to be an associate from March 30. Griha Investments Associates SolutionNET India Pvt. Small and Micro Industries HDFC Bank Ltd. Kairoleaf Analytics Pvt. HDFC Sales Pvt.HDFC Realty Ltd. Ltd. Ltd. HDFC Asset Management Company (Singapore) Pte. HDFC Ventures Trustee Company Ltd. Centillion Solutions and Services Pvt. Ltd. Ltd. Director Related Party to Key Management Personnel Salisbury Investments Pvt. Atlas Documentary Facilitators Company Pvt. Sudha Engineer H.

and there are no amounts unpaid to these suppliers as at the year end. Small and Medium enterprises. HDB Financial Services Ltd. certain disclosures are required to be made relating to Micro.3 lacs (previous year : Rs. 36 lacs). Small and Medium Enterprises Development Act. 2006 and amount unpaid as at March 31.Under the Micro. On the basis of the intimations received from suppliers regarding their status under the Micro. 2006. HDFC Securities Ltd. 2006 there are five (previous year : nine) suppliers registered under the said Act. Small and Medium Enterprises Development Act. 92 . Small and Medium Enterprises Development Act. 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 which came into force from October 2. 2010 is Rs. The Company has received intimation from a supplier regarding their status under the Micro. 0.

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. The Bank’s compensation policy provides a fair and consistent basis for motivating and rewarding employees appropriately according to their job role / size. Aditya Puri and Mr. Ashim Samanta. 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. non-receipt of Annual Report. The powers to approve share 93 . Capoor. Pandit Palande are the members of the Committee. splitting and consolidation of shares. The Committee is chaired by Mr. The Committee is chaired by Mr. The Committee also monitors redressal of complaints from shareholders relating to transfer of shares. Mr. The Committee met 6 (Six) times during the year. contribution. All the members of the Committee other than Mr. Investor Grievance (Share) Committee The Committee approves and monitors transfer. are placed before the Committee for ratification. retain and motivate employees. 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. skill and competence. Mr. Mr. performance. Gautam Divan. Jagdish Capoor. Jagdish Capoor. Gautam Divan and Dr. etc. Mr. Capoor are independent directors. transmission. Jagdish Capoor. The Committee consists of Mr.

C. Renu Karnad. Risk Monitoring Committee The Committee has been formed as per the guidelines of Reserve Bank of India on Asset Liability Management / Risk Management Systems. The details of the transfers are reported to the Board of Directors from time to time. Renu Karnad. Aditya Puri. 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. Besides 10. During the year under review 1888 complaints were received from the shareholders. Mr. requests for revalidation of dividend and fractional warrants and other investor related matters.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. Paresh Sukthankar. 78 instruments of transfer representing 4346 shares were pending and since then the same have been processed. The Committee met 15 (fifteen) times during the year.907 letters were received from the shareholders relating to change of address. queries relating to annual reports and amalgamation. All the complaints were attended to and as on 31st March 2010 no complaints remained unattended. These letters have also been responded to. The Committee develops Bank’s credit and market risk policies and procedures. 2010. Mr. M. Vasudev and Mr. ECS / NECS Mandates. 94 . The Committee is chaired by Mrs. The Committee consists of Mrs. The Committee met 6 (six) times during the year. As on March 31. verifies adherence to various risk parameters and prudential limits for treasury operations and reviews its risk monitoring system. nomination requests.

1949. g) Whistle Blower Policy 95 .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. cannot hold office continuously for a period exceeding 8 (eight) years. 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. They attend various workshops and seminars to keep themselves abreast with the changes in the business environment. f) Mechanism for evaluating non-executive Board Members The Nomination Committee evaluates the non-executive Board members every year. The performance evaluation of the members of the Nomination Committee is done by the Board of Directors excluding the Directors being evaluated. Mr. e) Training of Board Members The Bank’s Board of Directors consists of professionals with expertise in their respective fields and industry. Jagdish Capoor is the Chairman of the Committee and is not an independent Director. other than the Chairman and/or whole-time director. all the directors. They endeavor to keep themselves updated with changes in global economy and legislation. The Committee comprises majority of independent directors. Pursuant to Section 10(2A) of the Banking Regulation Act.

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. 2010 Sr.60 100.73 16.62 4. SHARE PRICE / CHART 96 . No.The Bank has adopted a Whistle Blower Policy pursuant to which employees of the Bank can raise their concerns relating to fraud. of Shares 108643220 77694909 3407493 121692561 % to Share Capital 23.74 26. The Audit and Compliance Committee of the Bank has reviewed the functioning of the Whistle Blower mechanism.07 9. CATEGORIES OF SHAREHOLDERS AS AT MARCH 31.05 7.25 No.37 9.59 * None of the equity shares held by the Promoter Group are under pledge. malpractice or any other activity or event which is against the interest of the Bank or society as a whole. None of the personnel has been denied access to the Audit and Compliance Committee.00 5724016 1.97 0.

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 .


hdfcbank.com. Memorandum and Articles of Association of the Bank. The web-site also gives a link to www.sec. The share dealing code. The shareholders can visit the Bank’s web-site for financial information. key shareholders’ agreements. prohibits purchase / sale of shares of the Bank by employees while in possession of unpublished price sensitive information in relation to the Bank. 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. shareholding information. The results are also displayed on the Bank’s web-site at www. dividend policy. etc. 99 .The quarterly and half-yearly unaudited financial results are published in 'Business Standard' in English and 'Mumbai Sakal' in Marathi (regional language).gov where the investors can view statutory filings of the Bank with the Securities and Exchange Commission. USA.

Crores) 98883 127262 2009 2010 100 .BALANCE SHEET SIZE (Rs. Crores) 183271 222459 2009 2010 ADVANCES (Rs.

Crores) 61154 72271 2009 2010 101 .RETAIL ASSETS (Rs.

DEPOSITS (Rs. Crores) 142812 167404 2009 2010 102 .

SAVINGS DEPOSITS (Rs. Crores) 49877 34915 2009 2010 103 .

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.20% 16.RETURN ON CAPITAL (%) 16.

5 2.5 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 67.6 11 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 105 .6 2 3 4.8 18 5.5 1.2 36.9 22.9 46.3 27.6 EARNING PER SHARE (Rs.) 8.5 10 7 5.12 DIVIDEND PER SHARE (Rs.9 13.9 8.) (Rs.5 3.) 52.

63% 7.46% 60.55% Commission.17% 1.93% Interest from adv ances Profit on inv estment 3.31% Interest expense 42.00% 3.RUPEE EARNED 0.75% Interest from inv estment Others RUPEE SPENT 31.28% Operating Expense Shareholding Pattern as on 31st March.30% tax prov isions div idend & Tax on Div idend Transfer to reserv e 4. Exchange & Brokerage Other interest income FX & Deriv e income ativ 14. 2010 106 .48% 11.05% 0.09% 19.

107 .

108 .WHAT IS SWOT ANALYSIS? SWOT Analysis is a strategic planning method used to evaluate the Strengths. and Threats involved in a project or in a business venture. who led a convention at Stanford University in the 1960s and 1970s using data from Fortune 500 companies. 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. Weaknesses. The technique is credited to Albert Humphrey.

Besides the core business. competitors Large share of low-cost deposits. • • • 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. banking. • • • • • • • • • High degree of customer satisfaction. Dedicated workforce aiming at making a long-term career in the field. Lower response time with efficient and effective service. BPO. 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 0.4 per cent Free float available. Products have required accreditations. 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. AMC. HDFC’s insurance. 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. Superior customer service vs.

• HDFC Bank plans to set up a non-banking finance company (NBFC) to undertake fund-based activities. 110 . growing only organically Possible takeover target OPPORTUNITIES • • • • • • • Fast growing insurance business in the country. An applied research centre to create opportunities for developing techniques to provide added-value services. Processes and systems. • • • • Customer service staff needs training. Could extend to overseas broadly Fast-track career development opportunities on an industry-wide basis.WEAKNESSES • • High dependence on individual loans. etc need to be better managed Management covers insufficient. HDFC Bank anticipates major cost savings whilst maintaining high levels of customer service thanks to new enterprise software agreement. 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. Untapped rural markets. Unique partnership to create job opportunities for IFBI’s PGDBO students HDFC bank automates business processes with Staff ware. Major stake held by American financial groups which are under stress due to economic slowdown.

which are known for their state of art working and keeping low operation costs. Very high competition prevailing in the industry Extension overseas holds a lot of risk! Threat from credit card collections dept. Unlike Government Banks. • After showing a significant growth overall. India has witnessed entry of many international banks like CITI Bank.10. an account needs a minimum balance of Rs. High volume/low cost market is intensely competitive. 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. Varying and In-Convenient ECS dates.• In recent times. India is able to attract many international financial & banking institutes. 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 .

Threat: • Entry of many Foreign Banks. Strategy: • Deep Penetration into Rural Market. Strategy: • Steps to Ensure Loyalty by old Customers. Strategy: • Consider additional benefits 112 . WEAKNESSES W – O Strategies Weakness: • Workforce Responsiveness. Strategy: • Outsource Customer Care & other E-Helps. S – T Strategies T H R E A T S Strength: • Low operating costs Threat: • Increased Competition from others Pvt. W – T Strategies Weakness: • Not Equal to International Standards. Opportunity: • Outsourcing of Non – Core Business. Banks. Opportunity: • Market Expansion.COMPETITIVE SWOT ANALYSIS STRENGTHS O P O R T U N I T I E S S – O Strategies Strength: • Large Capital base.

000 (Non – Premium Value).e.Opportunity Analysis Strength: It is well know that HDFC Bank has the largest Authorised Capital Base in the Banking System in India i. 19. Strategy: From the analysis of Strength & Opportunity the simple and straight possible strategy for HDFC Bank could be . 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.to penetrate into the rural sector of India for expanding its market share as well as leading all other Pvt.Threat Analysis 113 .Detailed Analysis Strength . 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. Banks from a great gap. having a total capacity to raise Rs.000. Strength .000.

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. India is preferred one of the best places for out – sourcing of business process works and many more. which are known for their state of art working and keeping low operation costs. 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. Threat: After showing a significant growth overall.Opportunity Analysis Weakness: It is well known that workforce responsiveness in banking sector is very low in Indian banking sector. Strategy: 114 . Weakness . therefore guaranteeing continuous business. India is able to attract many international financial & banking institutes. though HDFC Bank has better responsible staff but it still lacks behind its counterparts like HSBC. YES BANK etc. Opportunity: In the present world. CITI BANK.

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
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.

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.

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


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.


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

Interestingly even in Asia. The results are based on combinations of performance figures and nominations.” He further added “In the process we have also outperformed all global private banks operating in India. to 10th position in the current year from 23rd in the previous year. The survey also includes competitors' perceptions of the best performing providers in defined client and product categories. Private Banking. Third Party Products. one of India’s premier banks. HDFC Bank opens its 4000th ATM in the country Mumbai. At HDFC Bank. Commenting on this recognition.” 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. up almost 10% on last year‟s poll. Group Head – Equities. in the private bank category. as well as global and regional awards. Abhay Aima. Votes cast represented $6. Euromoney Private Banking and Wealth Management Services is the global industry benchmark for the wealth management industry and cover over 60 countries every year.8 trillion of assets under management. February 21. has opened its 4000th ATM in the country at Mangalore. This is the Bank's 8th ATM in the city 118 . The growth in private banking in India is inclusive and we are witnessing growth from Tier 2 and Tier 3 cities also. 2010: HDFC Bank. The year Euromoney received a total of 1800 votes.The rankings are based on qualitative and quantitative survey supported by quantitative data provided by the participating banks. NRI & International Consumer Business said “It is an honor for us to be conferred with these awards. we have moved up in rankings. 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.

The Bank also emerged best in the “Automobile Lending” sector. NH 17. 119 . viewing account balances and mini statements. Marketing & Direct Banking Channels said. Beating a host of other competitors in Asia Pacific.000 such ATMs in service today and will continue to expand in future. CAMPCO Ltd. Rahul Bhagat.Retail Liabilities. Padmanabha. March 29. The new ATM located at Vijaya Mahal..and 1165th in the South overall. K. With the introduction of "Faster ATMs" an HDFC Bank customer can. at any time of the day. transfer funds between accounts. one of India’s premier banks. now do cash withdrawal at any HDFC Bank ATM in 40% less time. Gulf Cooperation Council (GCC) and Central Asia on a range of parameters. has won The Asian Banker's ’Best Retail Bank in India’ award this year. It is a matter of great satisfaction for us that we have 4. 2010: HDFC Bank. President. The customers can also do other transactions on the ATM like credit card payment. “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. Surathkal was inaugurated by Mr. the Bank has won the ’Best Retail Bank in India’ award for the fourth year in a row. cheque status enquiry. Speaking on the occasion Mr. Country Head ." “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. Mangalore. Gulf and Central Asian regions Mumbai. The time thus saved is utilized for logical cross sell and targeted marketing to the customers.

.” 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.First bank ever to retail silver bars in India HDFC Bank retails silver bars this Akshaya Tritiya 120 .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. ”HDFC Bank has passed all stringent screening and requirements throughout the Excellence in Retail Financial Services evaluation process and been granted the awards. the publication has observed in its communication to the company.

2010: HDFC Bank. HDFC Bank is the first ever bank to sell silver bars in India after following the huge success in gold coins / bars. signifying highest level of purity as per international industry standards. Head. without any worries about the purity of the item purchased.” BIBLIOGRAPHY BOOKS REFFERED: 121 . Through the „Pure Silver‟ offer we hope to provide customers a convenient and reliable way of purchasing silver. Last year it sold around 440kgs gold during Akshaya Tritya. “We have always endeavored to provide a variety of secured investment and saving products to our customers. In fact. The launch provides Indian customers an easy and reliable way of buying silver.99% Assay certification. India. said. The bank is one of the leading players as far as gold is concerned. Silver has been traditionally the most favoured form of investment for Indians next to gold. HDFC Bank ”Pure Silver‟ bars will be imported from Switzerland. Each bar weighing 50gms will carry a 99. May 13.Mumbai. a popular investment option. even today is amongst the highest consumers of Silver in the world. Mr. one of the premier banks in the country will retail into silver bars on the auspicious occasion of Akshaya Tritya this year. Retail Liabilities Product Group. Seshan Ramakrishnan. 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. 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.

wikipedia.com • • • www.R.com • www.• Management Accounting – Chaudhary & Chopde • Principles of Banking .google.Kothari WEBSITES REFFERED: • www.co.in www.com www.hdfcbank.rbi.nyse.in REPORTS/ARTICLES REFFERED: • Annual report of HDFC BANK 2010 122 .Bandgar • Research Methodology – C.

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