Service Quality Management And Client Profiling [Preferred Clients]
Submitted To Lovely Professional University

In Partial fulfilment of the requirements for the award of degree of
Master of Business Administration

Submitted By: Haziq Mushtaq Roll No: R-1804-B 51 Registration No: 1800085 DEPARTMENT OF MANAGEMENT LOVELY PROFESSIONAL UNIVERSITY PHAGWARA (2009)

I si c ly feel t t t e c edit of t is project work could not be narrowed to only one individual as t e whole work is outcome of integrated efforts of all those concerned with it through whose cooperation and effective guidance I could achieve its completion. I wish to place my profound indebtness and deep sense of obligation to Mr. Aati Andrabi, Senior Manager, HDFC Bank (Srinagar) for his kind permission for the study in his organization and for his supreme guidance throughout the project. I express my sincereness thanks to Mr. Omer Guroo, Relationship Manager HDFC Bank ± Preferred banking (Srinagar) for extending his cooperation and guidance. I wish to express my deep sense of gratitude to Prof. Lokesh Jasraj for valuable suggestions; guidance and constant encouragement in making this project a success. When emotions are involved words fail to mean. My heart full sincere gratitude to my parents, who have supported, encouraged and helped me throughout my life and academic career. I am also grateful to all those employees of the HDFC Bank who have been helpful throughout my project work.

Haziq Mushtaq.


MBA is a stepping-stone to the management carrier and to develop good managerial skills it is necessary that the theoretical aspects learnt in the class rooms must be supplemented with exposure to the real work environment. Theoretical knowledge just provides the base and is not sufficient to produce a good manager that¶s why practical knowledge is needed so as to enhance the working capabilities by working in a real work environment Therefore the research product is an essential requirement for the student of MBA. This research project not only helps the student to utilize his skills properly, learn field realiti s but also e provides a chance to the organization to find out the talent among the budding managers in the very beginning. In accordance with the requirement of MBA course I have done my summer training project on the topic ³Service Quality Management and Client Profiling´. The main objective of the research project was to know the satisfaction level of the preferred customers of HDFC Bank and to profile [i.e. maintain a record, detailed information] of the preferred customers according the format provided by the organisation. For conducting the research project a sample size of 50 customers of HDFC Bank were selected. The information regarding the project research was collected through the questionnaire. Regarding the profiling, the company provided me with the details of each customers and I used to call them so as to fill in the necessary details.

Executive Summary. h Objectives of the study. h Methodology adopted. h Data collection. h Limitations of the study.  History of banking. h Current Scenario.  Overview of banking. h Organisational structure of banks. h Broad classification of banks in India. h Foreign Banks in India. h Role of banks. h Role of reserve bank of India.  Landmarks in Indian banking industry. h Further evolution.  About HDFC [Housing Development Finance Corporation limited] h HDFC founder. h HDFC bank ±company profile snapshot.  History of HDFC bank.  Achievements and milestones.  Product range of the company. h Accounts and deposits. h Secured and easy transaction processing.  Cards offered by the bank. h Credit cards. h Debit cards. h Prepaid cards.  Loans offered by the bank.  Access your bank.  HDFC bank-A look at the financial status. h Brief summary. h Business update h Sum up. h Graph showing financial status.  Future plans.  Details regarding actual source of data.  Preferred banking h The preferred programme. h Benefits available to preferred customers. h Eligibility for entry into preferred programme. 



h Grouping Usefulness of the information. Service quality. h Dimensions of service quality. h Customer satisfaction and loyalty. h Zero defections. Finding out awareness of the services among customers. Analysis and interpretation. Recommendations. Conclusion. Bibliography.




Banking Industry which is basically my concern industry around which my project is revolved is really a very complex industry. Challenges which I faced while doing this project were the followingAlthough the banking sector provides almost similar products and services, the bank I was working with [HDFC BANK] provided the same with much better benefits and convenience and to communicate the same, during my initial stages of the project was bit complicated as I myself was not aware of the same. But within few days I gathered relevant information and was able to communicate the difference to the customers easily. Target customers and respondents were too busy persons that to get their time and view for specific questions was very difficult. But I really enjoyed motivating them to give responses and made them to provide me with the necessary details. Sensitivity of the industry was also a very frequent factor which was very important to measure correctly. Area covered for the project while doing job was very large and it was very difficult to correlate two different customers/respondents views in a one. So above challenges sometimes forced me to leave the project but any how I did my project in all circumstances.

To gain knowledge of the various products and their features through observation method and through secondary data. To understand daily operations of the bank. To study the perception of the customers banking with it. To know the satisfaction level of the preferred customers.

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To gain insight into the fact as to where does the bank [HDFC] stand with respect to other banks in the region. To gather the personal details of the preferred customers while drafting their profile for future study and use by the organisation. To form a database of the preferred customers by filling in the details on the format as provided by the organisation.

Knowing the requirements, approach was based on the persons who were the customers of the organisation I was working with i.e., they were the customers of HDFC bank. I approached them when they were about to leave the bank after finishing their own personal work at the bank. The interview was in the form of questionnaire hence it was not so flexible. Some people were not comfortable with filling the questionnaire, so I had to convince them for the same. Majority of times I succeeded but at times I failed to convince some. All the information was collected from primary and secondary data only. The information obtained from primary data was analyzed and interpreted and various conclusions were drawn. Measures of statistical analysis were not used as I have not used any hypothesis and not expressing any relationship between variables. Questionnaire Questionnaire was prepared keeping in the mind the objective of the project. It was seen that it was made as easy as possible so that there would not be any complications for the customers to understand as it was a general survey on customer satisfaction of customers of HDFC bank. There were both open ended and closed questions in the questionnaire Sample size 50 clients were interviewed which included 30 clients of the branch I was working with and 20 others from various other branches of the company operational in the region.


The data was collected from both primary data and secondary data source. Primary data: In the process of doing the project, the clients of different branches of the bank were met and the details were taken. These clients gave their views regarding branch office in terms of their services. They also told the influencing factors and various questions that were asked. Secondary data Secondary data was used in order to get the information about the company. Various facts and details about HDFC bank were got. The website gone through is


The study could have been more comprehensive and more representative of the universe, had the sample-size been larger, but it was not possible mainly due to lack of time and some other constraints. The areas covered were restricted to Srinagar city only and as such the results of questionnaires are valid for Srinagar city only. All this report has been an individual attempt and it involves the human process of interpretation and analysis, so there are chances of human error. While talking to customers over the telephone, regarding their profiling process it was never known whether I was speaking to the real intended individual. While filling up the questionnaire, not all the respondents were eagerly giving the responses. Chances are quite high that some of them might have given wrong or misleading answers.


There are three different phases in the history of banking in India.

In India the business of banking and credit was practices even in very early times. The remittance of money through Hundies, an indigenous credit instrument, was very popular. The hundies were issued by bankers known as Shroffs, Sahukars, Shahus or Mahajans in different parts of the country. The modern type of banking, however, was developed by the Agency Houses of Calcutta and Bombay after the establishment of Rule by the East India Company in 18th and 19th centuries. During the early part of the 19th Century, ht volume of foreign trade was relatively small. Later on as the trade expanded, the need for banks of the European type was felt and the government of the East India Company took interest in having its own bank. The government of Bengal took the initiative and the first presidency bank, the Bank of Calcutta (Bank of Bengal) was established in 180. In 1840, the Bank of Bombay and IN 1843, the Bank of Madras was also set up. These three banks are also known as ³Presidency Bank´. The Presidency Banks had their branches in important trading centers but mostly lacked in uniformity in their operational policies. In 1899, the Government proposed to amalgamate these three banks in to one so that it could also function as a Central Bank, but the Presidency Banks did not favor the idea. However, the conditions obtaining during world war period (1914-1918) emphasized the need for a unified banking institution, as a result of which the Imperial Bank was set up in1921. The Imperial Bank of India acted like a Central bank and as a banker for other banks. The RBI (Reserve Bank of India) was established in 1935 as the Central Bank of the Country. In 1949, the Banking Regulation act was passed and the RBI was nationalized and acquired extensive regulatory powers over the commercial banks. 

1) Pre-Natio alizatio





Po t Li eralizatio





Natio alizatio

Stage. Era.





Pr - Natio alizatio


In 1950, the Indian Banking system comprised of the RBI, the Imperial Bank of India, Cooperative banks, Exchange banks and Indian Joint Stock banks.

After Independence, in 1951, the All India Rural Credit survey, committee of Direction with Shri. A. D. Gorwala as Chairman recommended amalgamation of the Imperial Bank of India and ten others banks into a newly established bank called the State Bank of India (SBI). The Government of India accepted the recommendations of the committee and introduced the State Bank of India bill in the Lok Sabha on 16th April 1955 and it was passed by Parliament and got the president¶s assent on 8th May 1955. The Act came into force on 1st July 1955, and the Imperial Bank of India was nationalized in 1955 as the State Bank of India. The main objective of establishing SBI by nationalizing the Imperial Bank of India was ³to extend banking facilities on a large scale more particularly in the rural and semi-urban areas and to diverse other public purposes.´ In 1959, the SBI (Subsidiary Bank) act was proposed and the following eight state-associated banks were taken over by the SBI as its subsidiaries.

Name of the Bank

Su si iary with effect from

1. State Bank of Hyderabad 2. State Bank of Bikaner 3. State Bank of Jaipur 4. State Bank of Saurashtra 5. State Bank of Patiala 6. State Bank of Mysore 7. State Bank of Indore 8. State Bank of Travancore

1st October 1959 1st January 1960 1st January 1960 1st May 1960 1st April 1960 1st March 1960 1st January 1968 1st January 1960

With effect from 1st January 1963, the State Bank of Bikaner and State Bank of Jaipur with head office located at Jaipur. Thus, seven subsidiary banks State Bank of India formed the SBI Group. The SBI Group under statutory obligations was required to open new offices in rural and semiurban areas and modern banking was taken to these unbanked remote areas. 


2) Natio alizatio


On 19th July 1969, then the Prime Minister, Mrs. Indira Gandhi announced the nationalization of 14 major scheduled Commercial Banks each having deposits worth Rs. 50 crore and above. This was a turning point in the history of commercial banking in India.

Later the Government Nationalized six more commercial private sector banks with deposit liability of not less than Rs. 200 crores on 15th April 1980, viz. Andhra Bank. Corporation Bank. New Bank if India. Oriental Bank of Commerce. Punjab and Sind Bank. Vijaya Bank.

In 1969, the Lead Bank Scheme was introduced to extend banking facilities to every corner of the country. Later in 1975, Regional Rural Banks were set up to supplement the activities of the commercial banks and to especially meet the credit needs of the weaker sections of the rural society. Nationalization of banks paved way for retail banking and as a result there has been an alt round growth in the branch network, the deposit mobilization, credit disposals and of course employment. The first year after nationalization witnessed the total growth in the agricultural loans and the loans made to SSI by 87% and 48% respectively. The overall growth in the deposits and the advances indicates the improvement that has taken place in the banking habits of the people in the rural and semi-urban areas where the branch network has spread. Such credit expansion enabled the banks to achieve the goals of nationalization, it was however, achieved at the coast of profitability of the banks.

3) Post-Li eralization Era---Thrust on Quality and Profitability:

By the beginning of 1990, the social banking goals set for the banking industry made most of the public sector resulted in the presumption that there was no need to look at the fundamental financial strength of this bank. Consequently they remained undercapitalized. Revamping this 

structure of the banking industry was of extreme importance, as the health of the financial sector in particular and the economy was a whole would be reflected by its performance. The need for restructuring the banking industry was felt greater with the initiation of the real sector reform process in 1992. the reforms have enhanced the opportunities and challenges for the real sector making them operate in a borderless global market place. However, to harness the benefits of globalization, there should be an efficient financial sector to support the structural reforms taking place in the real economy. Hence, along with the reforms of the real sector, the banking sector reformation was also addressed. The root causes for the lackluster performance of banks, formed the elements of the banking sector reforms. Some of the factors that led to the dismal performance of banks were. Regulated interest rate structure. Lack of focus on profitability. Lack of transparency in the bank¶s balance sheet. Lack of competition. Excessive regulation on organization structure and managerial resource. Excessive support from the government. Against this background, the financial sector reforms were initiated to bring about a paradigm shift in the banking industry, by addressing the factors for its dismal performance.

In this context, the recommendations made by a high level committee on financial sector, chaired by M. Narasimham, laid the foundation for the banking sector reforms. These reforms tried to enhance the viability and efficiency of the banking sector. The Narasimham Committee suggested that there should be functional autonomy, flexibility in operations, dilution of banking strangulations, reduction in reserve requirements and adequate financial infrastructure in terms of supervision, audit and technology. The committee further advocated introduction of prudential forms, transparency in operations and improvement in productivity, only aimed at liberalizing the regulatory framework, but also to keep them in time with international standards. The emphasis shifted to efficient and prudential banking linked to better customer care and customer services.



Currently (2009), overall, banking in India is considered as fairly mature in terms of supply, product range and reach-even though reach in rural India still remains a challenge for the private sector and foreign banks. Even in terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets-as compared to other banks in comparable economies in its region. The Reserve Bank of India is an autonomous body, with minimal pressure from the government. The stated policy of the Bank on the Indian Rupee is to manage volatility-without any stated exchange rate-and this has mostly been true. With the growth in the Indian economy expected to be strong for quite some time-especially in its services sector, the demand for banking services-especially retail banking, mortgages and investment services are expected to be strong. M&As, takeovers, asset sales and much more action (as it is unraveling in China) will happen on this front in India. In March 2008, the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been allowed to hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any stake exceeding 5% in the private sector banks would need to be vetted by them. Currently, India has 88 scheduled commercial banks (SCBs) - 28 public sector banks (that is with the Government of India holding a stake), 29 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 31 foreign banks. They have a combined network of over 53,000 branches and 17,000 ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively

Banking Regulation Act of India, 1949 defines Banking as ³accepting, for the purpose of lending or of investment of deposits of money from the public, repayable on demand or otherwise or withdrawable by cheque, draft order or otherwise.´ The Reserve Bank of India Act, 1934 and the Banking Regulation Act, 1949, govern the banking operations in India.

In India banks are classified in various categories according to differ rent criteria. The following charts indicate the banking structure:


Agricultural Credit


In India the banks are being segregated in different groups. Each group has their own benefits and limitations in operating in India. Each has their own dedicated target market. Few of them only work in rural sector while others in both rural as well as urban. Many even are only catering in cities. Some are of Indian origin and some are foreign players. 



Reserve Bank of India

Commercial Banks

Co-operative Banks

Development Banks


Short-term credit

Long-term credit

Urban Credit




Public sector banks in India

United Bank of India is one of the 14 major banks which were nationalised on July 19, 1969. Its predecessor, in the Public Sector Banks, the United Bank of India Ltd., was formed in 1950 with the amalgamation of four banks viz. Comilla Banking Corporation Ltd. (1914), Bengal Central Bank Ltd. (1918), Comilla Union Bank Ltd. (1922) and Hooghly Bank Ltd. (1932). Oriental Bank of Commerce (OBC), a Government of India Undertaking offers Domestic, NRI and Commercial banking services. OBC is implementing a GRAMEEN PROJECT in Dehradun District (UP) and Hanumangarh District (Rajasthan) disbursing small loans. This Public Sector Bank India has implemented 14 point action plan for strengthening of credit delivery to women and has designated 5 branches as specialized branches for women entrepreneurs.
Private Banking In India

It was practiced since the beginning of banking system in India. The first private bank in India to be set up in Private Sector Banks in India was IndusInd Bank. It is one of the fastest growing private sector Banks in India. IDBI ranks the tenth largest development bank in the world as Private Banks in India and has promoted world class institutions in India. The first Private Bank in India to receive an in principle approval from the Reserve Bank of India was Housing Development Finance Corporation Limited, to set up a bank in the private sector banks in India as part of the RBI's liberalisation of the Indian Banking Industry. It was incorporated in August 1994 as HDFC Bank Limited with registered office in Mumbai and commenced operations as Scheduled Commercial Bank in January 1995.

ING Vysya, yet another Private Bank of India was incorporated in the year 1930. Bangalore has a pride of place for having the first branch inception in the year 1934. With successive years of patronage, the private banks are constantly setting new standards in banking.
The Co Operative Banks In India

It started functioning almost 100 years ago. The Cooperative bank is an important constituent of the Indian Financial System, judging by the role assigned to co operative, the expectations the co operative is supposed to fulfill, their number, and the number of offices the cooperative bank operate. Though the co operative movement originated in the West, but the importance of such banks have assumed in India is rarely paralleled anywhere else in the world. The cooperative

banks in India play an important role even today in rural financing. The businesses of cooperative bank in the urban areas also have increased phenomenally in recent years due to the sharp increase in the number of primary co-operative banks. Co operative Banks in India are registered under the Co-operative Societies Act. The cooperative bank is also regulated by the RBI. They are governed by the Banking Regulations Act 1949 and Banking Laws (Co-operative Societies) Act, 1965.
Rural Banking In India

It started since the establishment of banking sector in India. Rural Banks in those days mainly focussed upon the agro sector. Regional rural banks in India penetrated every corner of the country and extended a helping hand in the growth process of the country. SBI has 30 Regional Rural Banks in India known as RRBs. The rural banks of SBI are spread in 13 states extending from Kashmir to Karnataka and Himachal Pradesh to North East. The total number of SBIs Regional Rural Banks in India branches is 2349 (16%). Till date in rural banking in India, there are 14,475 rural banks in the country of which 2126 (91%) are located in remote rural areas. Apart from SBI, there are other few banks which functions for the development of the rural areas in India. Few of them are as follows. Haryana State Cooperative Apex Bank Limited The Haryana State Cooperative Apex Bank Ltd. commonly called as HARCOBANK plays a vital role in rural banking in the economy of Haryana State and has been providing aids and financing farmers, rural artisans, agricultural labourers, entrepreneurs, etc. in the state and giving service to its depositors. Nabard National Bank for Agriculture and Rural Development (NABARD) is a development bank in the sector of Regional Rural Banks in India. It provides and regulates credit and gives service for the promotion and development of rural sectors mainly agriculture, small scale industries, cottage and village industries, handicrafts. It also finances rural crafts and other allied rural economic activities to promote integrated rural development. It helps in securing rural prosperity and its connected matters.

Sindhanur Urban Souharda Co-operative Bank Sindhanur Urban Souharda Co-operative Bank, popularly known as SUCO BANK is the first of its kind in rural banks of India. The impressive story of its inception is interesting and inspiring for all the youth of this country. United Bank of India United Bank of India (UBI) also plays an important role in regional rural banks. It has expanded its branch network in a big way to actively participate in the developmental of the rural and semi-urban areas in conformity with the objectives of nationalisation.

Syndicate Bank Syndicate Bank was firmly rooted in rural India as rural banking and have a clear vision of future India by understanding the grass root realities. Its progress has been abreast of the phase of progressive banking in India especially in rural banks


These always brought an explanation about the prompt services to customers. After the set up foreign banks in India, the banking sector in India also become competitive and accurative. New rules announced by the Reserve Bank of India for the foreign banks in India in this budget have put up great hopes among foreign banks which allow them to grow unfettered. Now foreign banks in India are permitted to set up local subsidiaries. The policy conveys that foreign banks in India may not acquire Indian ones (except for weak banks identified by the RBI, on its terms) and their Indian subsidiaries will not be able to open branches freely. Please see the list of foreign banks in India till date.
List of Foreign Banks in India

Abu Dhabi Commercial Bank ANZ Grindlays Bank Bank of America Bank of Ceylon BNP Citi Bank China Trust Commercial Bank

HSBC Standard Chartered Bank Taib Bank Bank of Nova Scotia ABN-AMRO Bank Deutsche Bank JPMorgan Chase Bank By the year 2009, the list of foreign banks in India is going to become more quantitative as number of foreign banks is still waiting with baggage to start business in India. By 2009 few more names is going to be added in the list of foreign banks in India. This is as an aftermath of the sudden interest shown by Reserve Bank of India paving roadmap for foreign banks in India greater freedom in India. Among them is the world's best private bank by EuroMoney magazine, Switzerland's UBS.

The following are the list of foreign banks going to set up business in India

Royal Bank of Scotland Switzerland's UBS US-based GE Capital Credit Suisse Group Industrial and Commercial Bank of China Merrill Lynch is having a joint venture in Indian investment banking space -- DSP Merrill Lynch. Goldman Sachs holds stakes in Kotak Mahindra arms. GE Capital is also having a wide presence in consumer finance through GE Capital India. India's GDP is seen growing at a robust pace of around 7% over the next few years, throwing up opportunities for the banking sector to profit from.

Banks play a positive role in economic development of a country as repositories of community¶s savings and as purveyors of credit. Indian Banking has aided the economic development during the last fifty years in an effective way. The banking sector has shown a remarkable responsiveness to the needs of planned economy. It has brought about a considerable progress in its efforts at deposit mobilization and has taken a number of measures in the recent past for accelerating the rate of growth of deposits. As recourse to this, the commercial banks opened

branches in urban, semi-urban and rural areas and have introduced a number of attractive schemes to foster economic development. By pooling the savings together, banks can make available funds to specialized institutions which finance different sectors of the economy, needing capital for various purposes, risks and durations. By contributing to government securities, bonds and debentures of term-lending institutions in the fields of agriculture, industries and now housing, banks are also providing these institutions with an access to the common pool of savings mobilized by them, to that extent relieving them of the responsibility of directly approaching the saver. This intermediation role of banks is particularly important in the early stages of economic development and financial specification. A country like India, with different regions at different stages of development, presents an interesting spectrum of the evolving role of banks, in the matter of inter-mediation and beyond. Mobilization of resources forms an integral part of the development process in India. In this process of mobilization, banks are at a great advantage, chiefly because of their network of branches in the country. And banks have to place considerable reliance on the mobilization of deposits from the public to finance development programmes. Further, deposit mobilization by banks in India acquired greater significance in their new role in economic development. Commercial banks provide short-term and medium-term financial assistance. The short-term credit facilities are granted for working capital requirements. The medium-term loans are for the acquisition of land, construction of factory premises and purchase of machinery and equipment. These loans are generally granted for periods ranging from five to seven years. They also establish letters of credit on behalf of their clients favoring suppliers of raw materials/machinery (both Indian and foreign) which extend the banker¶s assurance for payment and thus help their delivery. Certain transaction, particularly those in contracts of sale of Government Departments, may require guarantees being issued in lieu of security earnest money deposits for release of advance money, supply of raw materials for processing, full payment of bills on the assurance of the performance etc. Commercial banks issue such guarantees also.
The Role of Reserve Bank of India (RBI) ² Banker·s Bank

The Reserve Bank of India (RBI) is the central bank of India, and was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. Since its

inception, it has been headquartered in Mumbai. Though originally privately owned, RBI has been fully owned by the Government of India since nationalization in 1949. RBI is governed by a central board (headed by a Governor) appointed by the Central Government. The current governor of RBI is Dr.Y.Venugopal Reddy (who succeeded Dr. Bimal Jalan on September 6, 2003). RBI has 22 regional offices across India. The Reserve Bank of India was set up on the recommendations of the Hilton Young Commission. The commission submitted its report in the year 1926, though the bank was not set up for nine years.
Main Objective: Monetary Authority Formulates implements and monitors the monetary policy.

Objective: maintaining price stability and ensuring adequate flow of credit to productive sectors.
Regulator and supervisor of the financial system

Prescribes broad parameters of banking operations within which the country¶s banking and financial system functions. Objective: maintain public confidence in the system, protect depositors¶ interest and provide cost-effective banking services to the public. The Banking Ombudsman Scheme has been formulated by the Reserve Bank of India (RBI) for effective redressal of complaints by bank customers
Manager of Exchange Control

Manages the Foreign Exchange Management Act, 1999. Objective: to facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India.
Issuer of currency

Issues and exchanges or destroys currency and coins not fit for circulation. Objective: to give the public adequate quantity of supplies of currency notes and coins and in good quality.

Developmental role

Performs a wide range of promotional functions to support national objectives.
Related Functions

Banker to the Government: performs merchant banking function for the central and the state governments; also acts as their banker. Banker to banks: maintains banking accounts of all scheduled banks. Owner and operator of the depository (SGL) and exchange (NDS) for government bonds. There is now an international consensus about the need to focus the tasks of a central bank upon central banking. RBI is far out of touch with such a principle, owing to the sprawling mandate described above.

Changing the face of Indian banking It is a revolution that that has changed the face of banking in India. The core banking solution (CBS) enabled the concept of µanytime, anywhere¶ banking. The concept is all set to evolve from just being the IT infrastructure automating banking operations to the only way of doing banking in the future. CBS has had a dramatic affect on banking in India, as prior to the large Indian banks undergoing a core banking transformation, branches were the only viable banking channel for both businesses and consumers. ³Worse yet, these resource-constrained channels were localized with respect to the information that they possessed. For example, if a consumer opened an account at a branch near their home, that person would not be recognized at other bank branches. This decentralized model restricted the value of banking. Since most large banks and many other banks have transformed their back office, anywhere and anytime banking is driving higher levels of access and value to the end customers,´ stated Don Free, Research Director, Banking/Investments, and Gartner.


No other sector has benefited from IT as much as the financial sector, in particular banking. The process of bank automation started in the 1990s, and since then there has been constant evolution. The implementation of CBS has been marked by key milestones at every step. Indian banks have of course had the last mover advantage while their counterparts in Western countries have been struggling with the challenges of replacing legacy systems. Free added ³The key milestone for Indian banking was the ability to leapfrog technologies² bypassing the client- server technology era and entering the true multi-channel, Web-based and mobile banking age.´ The major developments have been anywhere banking, implementation of RTGS (Real Time Gross Settlement), growth of ATM and Internet banking, e-commerce, faster settlements in equity and commodity markets and now mobile banking. ³It has reduced the dependency of banks on diverse human efficiency across branches in different regions, thereby standardizing the quality of service. Enhanced efficiency has increased the competitiveness amongst the banks, ultimately benefiting the consumer. The risk management capability of banks has also been scaled up, making them more stable and robust institutions,´ said Sanjay Padode, CEO, and Religare Technova. Uppili Srinivasan, Senior Vice President & Head-Corporate Banking and Internet Solutions, Polaris Software, asserted that the keystone of core banking has been the achievements in the areas of networking and connectivity. Centralizing operations, offering value added services which ride on top of the core banking framework and outsourcing certain banking processes to third parties, have been the other major achievements. Cuts across all types of banks Irrespective of the size of the bank, the foundation of a successful consumer banking strategy rests on the core banking technologies that banks have implemented. While large banks have been able to simplify their back-office, launch products faster and perform better customer relationship management; the smaller ones have been able to succeed without making heavy technology investments and redeploying manpower in core operations. They can now expand using lesser capital on account of the reach provided by the data communications network and the ability to automate telling operations. Many small and medium banks have been consequently expanding rapidly to join the big league. ³Earlier, every branch

required substantial capital investment and working capital for establishment, but in today¶s time this has been reduced substantially,´ said Padode. While the public sector banks are largely onboard with the commoditized aspects of core banking, not all of them have exploited a significant possibilities opened up by this technology. ³The cooperative and the small banks are still quite the laggards in that they continue to grapple with this challenge at a more fundamental level,´ rued Srinivasan.

The number of co-operative Sector banks implementing CBS has however been increasing by the day with many vendors now offering CBS with an affordable TCO. Many cooperative banks are leveraging this opportunity to enhance their businesses and offering customers mobile and Internet banking. ³As some vendors are offering flexible CBS solutions that are modular and parameterized, cooperative banks have the choice of making a strategic decision on investing in the right solution that best meets their business needs,´ said Murthy Veeraghanta, Co-founder and President, VSoft Corporation. Driving the business CBS has brought about a sea change in the mindset of bankers. Location and geographic expansion is no longer a prerogative of a select few large, multinational banks. It has opened several channels of opportunities for innovative thinkers. ³It has been the magic key for the more adventurous and innovative banks in devising their goto-market strategy, their customer retention and product pricing strategies and their expansion plans,´ conceded Srinivasan. Most of the changes that banks have been experiencing relate to these fundamental core banking functions. Factors necessitating these changes are the forces of competition, productivity and efficiency of operations, reduced operating margins and the need for better asset liability management. ³The major challenges that banks face are the impact of competition and the falling margins in the transactions undertaken by them. With wafer-thin profit margins being the order of the day, the solution to this would lie in increasing volumes well beyond a critical mass so as to result in better operating results for banks. This is best achieved by exploiting the benefits of technology enabled core banking which facilitates handling of increased volumes with higher levels of efficiency,´ asserted Veeraghanta.

Centralization of operations, single-view of all information related to customer accounts and transactions, faster processes with fewer staff involved have also led to greater customer satisfaction. Benefits for bank customers Reduced transaction time and fees More innovative financial products enhancing the leveraging power of the consumer Convenience in accessing banking accounts through any branch, ATM, phone or the Internet. Reduced dependency on carrying cash thereby enhancing safety Enhanced competition amongst banks has led to aggressive products giving the ultimate benefit to the consumer in terms of cheaper loans and higher deposit interest rates Enhanced risk management capability has given the consumers safer banks and has empowered regulators to ensure better control on activities of the banking system


The scope of the banking system is increasing to cover all asset classes which interest the endcustomer for investing. Transaction business has become a significant part of banking topline and the core banking systems are fast adding functionality to cover insurance, equity, forex, mutual fund, real estate, art broking, etc. ³Going forward, e-payments, asset management and wealth management will become part of core banking,´ pointed out Padode. This apart, many intermediaries such as brokers will either become or merge with banks and all surviving banks will incorporate the intermediary function as part of their core operations. All of these changes will have to be factored in the new core banking systems. According to Free, ³Leading vendors are beginning to µdecompose¶ their banking products into smaller more granular components. Components that can be reused and configured for differing business support.´ This new approach will usher in an era of high levels of standardization and multi-vendor service bundles, leading to further increase in bank agility at lower maintenance costs. CBS today is not just about enabling efficiency and cost reduction in banking operations²its current tag of µany¶ is all set to be replaced by the term µmore¶, that is, more products and channels, more options, more real-time information, etc.


el ing Indians experience the joy of home ownership. The road to su ess is a tough and hallenging journe in the dark where onl obsta les light the path. Howe er, su ess on a terrain like this is not without a solution. As we found out nearl three de ades ago, in 1977, the solution for su ess is ustomer

satisfa tion. All ou need is the ourage to inno ate, the skill to understand our lientele and the desire to gi e them our best. Toda , nearl three million satisfied ustomers whose dream we helped realise, stand testimon to our su ess. Our obje ti e, from the beginning, has been to enhan e residential housing sto k and promote home ownership. Now, our offerings range from hassle-free home loans and deposit produ ts, to propert related ser i es and a training fa ilit . We also offer spe ialised finan ial ser i es to our ustomer base through partnerships with some of the best finan ial institutions worldwide.

Man with a Mission If e er there was a man with a mission it was asmukhbhai Parekh, our Founder and

Chairman-Emeritus, who left this earthl abode on No ember 18, 1994. Born in a traditional banking famil in Surat, Gujarat, Mr. Parekh started his finan ial areer at Harkisandass Lukhmidass - a leading sto k broking firm. The firm losed down in the late se enties, but, long before that, he went on to be ome a towering figure on the Indian finan ial s ene. In 1956 he began his lifelong finan ial affair with the e onomi worl , as General Manager of d the newl -formed Industrial Credit and In estment 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 unassum way, ing 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 it¶s 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." As Henry W. Longfellow said: Lives of great men all remind us We can make our life sublime, And, departing leave behind us Foot prints on the sands of time.

Company Profile Date of Establishment Exchanges: 2009 Sales Major Industry Sub Industry Ticker:
HDFC Bank Limited 1994 NYSE 4,261,400,000 Financial Commercial Banks HDB

Country: Headquarter Address

India HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai 400013, Maharashtra, India




HDFC Bank HDFC Mutual Fund HDFC Standard Life Insurance Company HDFC Sales HDFC ERGO General Insurance Company ltd (formerly HDFC General Insurance Company Ltd) Other Companies Co-Promoted by HDFC Financial Information with regard to Subsidiary Companies

The Group's principal activities are to provide banking and other financial services. The Group operates through four segments: Treasury, Retail Banking, Wholesale Banking and Other Banking Business. The Treasury Services segment consists of net interest earnings on investments portfolio of the bank and gains or losses on investment operations. The Retail Banking segment serves retail customers through a branch network and other delivery channels.

This segment raises deposits from customers and makes loans and provides advisory services to customers. The Wholesale Banking segment provides loans and transaction services to corporate and institutional customers. The Other Banking Operations segment provides services relating to credit cards, debit cards, third party product distribution and primary dealership business and other associated costs.

Background HDFC was incorporated in 1977 with the primary objective of meeting a social need - that of promoting home ownership by providing long-term finance to households for their housing needs. HDFC was promoted with an initial share capital of Rs. 100 million.

Business Objectives The primary objective of HDFC is to enhance residential housing stock in the country through the provision of housing finance in a systematic and professional manner, and to promote home ownership. Another objective is to increase the flow of resources to the housing sector by integrating the housing finance sector with the overall domestic financial markets.

Organisational Goals HDFC's main goals are to a) develop close relationships with individual households, b) maintain its position as the premier housing finance institution in the country, c) transform ideas into viable and creative solutions, d) provide consistently high returns to shareholders, and e) to grow through diversification by leveraging off the existing client base.

HDFC is a professionally managed organisation with a board of directors consisting of eminent persons who represent various fields including finance, taxation, construction and urban policy & development. The board primarily focuses on strategy formulation, policy and control, designed to deliver increasing value to shareholders.


Housing Development Finance Corporation Limited, more popularly known as HDFC Bank Ltd, was established in the year 1994, as a part of the liberalization of the Indian Banking Industry by Reserve Bank of India (RBI). It was one of the first banks to receive an 'in principle' approval from RBI, for setting up a bank in the private sector. The bank was incorporated with the name 'HDFC Bank Limited', with its registered office in Mumbai. The following year, it started its operations as a Scheduled Commercial Bank. Today, the bank boasts of as many as 1412 branches and over 3275 ATMs across India.

HDFC Bank in 1994 The Bank was incorporated on 30th August. A new private sector Bank promoted by housing Development Corporation Ltd. (HDFC), a premier housing finance company. The bank is the first of its kind to receive an in-principle approval from the RBI for establishment of a bank in the private sector. Certificate of Commencement of Business was received on 10th October 1994 from RBI. The Bank transacts both traditional commercial banking as well as investment banking. HDFC, the promoter of the bank entered into an agreement with National Westminister Bank Pc. and its subsidiaries (NatWest Group) for subscribing 20% of the banks issued capital and providing technical assistance in relation to the banks proposed banking business. HDFC Bank in 1995 70 No. of equity shares issued to subscribers to the Memorandum & Articles of Association on 30th August 1994. On the same date 500, 00,000 equity shares were allotted to HDFC promoters. 509, 20,000 shares were allotted to HDFC Employees Welfare Trust and HDFC Bank Employees Welfare Trust on 22nd December, 1994. On 16.1.1995, 90, 79,930 No. of equity shares were allotted to Jarrington Pte. Ltd. Another 400, 00,000 equity shares were allotted on private placement basis to NatWest Group on 9.5.1995. 500, 00,000 shares were allotted to the public on 9.5.95 (all were taken up). The Bank opened its first branch in Ramon House at Churchgate, Mumbai on January 16th. The Bank created an efficient operating system using well tested state-of-the-art software.

HDFC Bank in 1996 HDFC Bank entered the banking consortia of over 50 corporate, including some leading multinational companies, flagship companies of local business houses and strong public sector companies. HDFC Bank set up a state-of-the-art dealing room to handle all transactions possible in Indian financial markets. The Certificates of Deposits were awarded a PP1+ rating which is the highest rating for short term instruments indicating superior capacity for repayment. HDFC Bank in 1997 The bank is one of the largest mobilisers of retail deposits through its network of 20 branches. Its credit deposits ratio was 53.8%. The bank set up an ultra-modern hub at Powai in Mumbai where the bank's central computer is housed. This hub housed in 35,000 square feet of space, houses data of all the branches and facilitates the introduction of new products and services. HDFC installed state-of-the-art systems to facilitate inter-connectivity between branches and link up with on line system. The bank also signed up as a depository participant, under the newly set up NSDL, wherein the members clearing accounts settlement for dematerialised shares can be done through the bank. HDFC Bank, one of the nine new-generation private sector banks, planned to set up an all-India on-line automated teller machine (ATM) network. HDFC Bank proposed to launch tele-banking for the first time in June in Mumbai at its Chandiveli branch. HDFC Bank has drawn up plans to become a niche player in corporate banking by sticking to top-rung corporate. HDFC Bank becomes the first private sector bank to conclude a structured interest rate option deal. HDFC Bank on October 14 introduced ATMs that converse in a regional language.

HDFC Bank launched an account in all its 28 branches across India that seeks to free depositors from minimum balance requirement, for the first time in the country. HDFC Bank in 1998 HDFC Bank tied up with the Ahmadabad Stock Exchange (ASE) to act as its clearing bank. HDFC Bank proposed to strengthen its branch network in Calcutta with the addition of two new branches in the first quarter of the next fiscal. HDFC Bank signed an agreement with the National Stock Exchange (NSE) which will give it a second charge over the brokers deposit for providing loan against share facility to NSE brokers. The bank also entered into a similar understanding with the Bombay Stock Exchange (BSE) whereby the bourse will provide support for recovery of money against the card for loan against share facility. The bank also entered into `Cirrus' arrangements by which all master card holders across the globe will be able to transact at HDFC Bank in India. The bank provided phone-banking facility in Bangalore. HDFC tied up with Visa International to offer its Debit Card. - HDFC Bank Ltd entered into a memorandum of understanding for strategic business collaboration with Chase Manhattan Bank. HDFC Bank become the first bank in India to link up its automated teller machine (ATM) network with all the three major payment systems world-wide. HDFC Bank in 1999 The bank decided to issue 1, 33, 10,000 equity shares of Rs. 10 each to HDFC and a whollyowned subsidiary of it at a price of Rs. 94 per share. The bank also issued 13,70,000 equity shares to India Private Equity Fund and 51,20,000 shares to Indocean Financial Holding, the two equity funds controlled by Chase Manhattan Bank. HDFC Bank tied up with BPL Ltd to offer Internet-enabled supply-chain management and business-to-consumer (B2C) e-commerce services to corporate houses. Hutchison Max Telecom and HDFC Bank introduced the country's first-ever mobile-banking services in the city.

HDFC Bank in 2000 HDFC Bank also signed a memorandum of understanding with Singapore Telecom's ecommerce arm Sesami.Com Pvt Ltd. - The Bank latter also entered into a partnership agreement with National Computer Systems, the e-commerce unit of Singtel. A new company called (India) had been formed by a strategic alliance between HDFC Bank and Singapore Telecom's e-commerce company, to offer e-commerce solutions for the Indian market. HDFC Bank had a tie-up with Maxtouch for giving the facility to the latter's customers in Mumbai. This was the first and only service of this sort in the country. HDFC Bank launched an online electronic banking solution called Enet which allowed corporates to access their accounts over the net and carry out trade related transactions and cash management functions. HDFC Bank entered into a tie-up with Telco by which the bank would provide preferential financing options for Tata's range of passenger cars including the Indica, Sumo, Safari, Estate and Sierra. HDFC Bank allotted 1.98 crore shares of Rs 10 each at an issue price of Rs 94 p share to er promoters and strategic investors on March 29. HDFC Bank becomes the first bank in the country to offer wireless application protocol (WAP) services to customers. SkyCell Communications Ltd, one of the two cellular service providers in Chennai, launched `Sky Banking', for which the company tied up with ICICI Bank and HDFC Bank. The bank tied up with 12 utility companies nationwide including BSES, MSEB, BEST, Orange, BPL and MTNL. The Company introduced a new scheme whereby it will provide loans to individuals for payment of self assessment tax on their properties in Bangalore. HDFC Bank launched its 123rd outlet at Delhi Stock Exchange building at Asaf Ali Road. The Bank launched `Freedom - The e-Age Savings Account' for cellular phone users.

Spice Cell tied up with Citibank N A, HDFC Bank and ICICI Bank for mobile bill settlements. HDFC Bank and Cosmos Bank launched a co-branded ATM card HDFC Bank in 2001 The Bank opened its first branch in Aurangabad. HDFC Standard Life Insurance entered into a memorandum of understanding with the Chennaibased Indian Bank. The Bank launched the international Maestro debit card in association with Master Card. HDFC Bank launched its credit card in June through link-ups with MasterCard and Visa. entered into a strategic tie-up with HDFC Bank to provide Net banking services to online investors. HDFC Bank launched a new campaign for its ease savings account. HDFC Bank entered into a strategic tie-up with Tally Solutions Pvt. Ltd. to offer online real time accounting services to small and medium enterprises. The Bank opened four ATMs outlets in Bangalore at Coles Road, RT Nagar, Rajaji Nagar and Jaya Nagar on March 26. HDFC Standard Life Insurance launched a `Development Insurance Plan' a low cost life insurance product developed specifically to meet the needs of economically weaker sections. HDFC Bank in 2002 HDFC Bank unveiled a new online account aggregation service `OneView'. HDFC launched 'One View' service to customers HDFC Bank launched its 9th branch in Karnataka. HDFC opens its branch in Mangalore. HDFC Bank unveils Silver card in Hyderabad. HDFC Bank opens first overseas representative office.

HDFC Bank unveils gold card. HDFC Bank launched new products to its wealth management programme to increase its customer base. The bank introduced a non-interactive product named "Financial Planner", which would be available for all its customers for an annual fee starting from Rs 10,000. The bank is offering fee based advisory programme to the "mass affluent" segment, which was earlier offered to high net worth customers. The wealth management programme would cater to individual needs taking into account various factors such as customer's age, financial goals and risk profile, which includes equity, MFs and debt instruments such as RBI Relief Bonds. HDFC Bank in 2003 HDFC Bank unveils resident foreign currency account. HDFC Bank unveils co-branded credit card with e-Seva. The Board of Directors of HDFC Bank Ltd at their meeting held on January 15, 2003 approved the appointment of Mr. Arvind Pande as an Additional Director pursuant to section 260 of the Companies Act, 1956. EPFO JV with HDFC Bank for its pension distribution. HDFC enters into agreement with HDFC Bank to source housing loans. HDFC Bank, IRCTC in tie up for online railway booking. HDFC Bank inks pact with ANB for remittance service HDFC Bank introduces 'HDFC Bank Health Plus Credit Card'. Uma Krishnan resigns HDFC Bank as country head. Warburg Pincus sells 2% stake in HDFC for Rs 235 cr HDFC Bank in 2004 Mr Ranjan Kapur & Mr Bobby Parikh appointed as Additional Directors NMCE inks pact with HDFC Bank for warehouse receipts. HDFC Bank entered into an alliance with Clearing Corporation of India Ltd (CCIL). The tie-up offered the latter's collateral

borrowing and lending obligation (CBLO) product to cooperative banks that are not direct members of the negotiated dealing system (NDS). HDFC Bank repurchases HDFC loans worth Rs 208 cr Andhra Bank entered into an alliance with HDFC Bank for sharing its network of automated teller machines (ATMs). On March 29, 2004 HDFC Bank and Bahraini Saudi Bank (BSB) announced an alliance to cater to service the needs of the non-resident Indians (NRIs) in Bahrain. HDFC Bank launches new scheme for Maruti 800 buyers, providing 85 per cent finance on the on-road price of the car for seven years. HDFC Bank wins Asiamoney award for Best Domestic Bank HDFC Bank in 2005 TMB forges alliance with HDFC Bank HDFC Bank inaugurates first ATM in Hotel HDFC Bank ties up with the International Bank of Qatar (IBQ) to launch banking services in Qatar. HDFC Bank launches loyalty rewards programme for its debit and credit cardholders under the name InstaWonderz. HDFC Bank in 2006 HDFC sets up two more branches in AP HDFC Bank along with MasterCard International launched credit card targeted at small and medium-sized enterprises HDFC Bank tied up with US-based WL Ross and company LLC for investing in corporate restructuring HDFC Bank unveils credit card for farmers

HDFC Bank in 2007 HDFC Bank signed an agreement with Tata Pipes to offer credit facilities to farmers across the country. HDFC Bank Ltd appointed Mr. Pandit Palande as an additional Director of the Bank at the Board Meeting held today i.e. on 24th April 2007. HDFC Bank Ltd informed that the Board of Directors of the Bank at its meeting held on October 12, 2007, has been appointed Mr. Paresh Sukthankar & Mr. Harish Engineer as Executive Directors on the Board of Directors of the bank. Mr. Sukthankar & Mr. Engineer have been senior employees of the Bank since 1994 and have held various positions of responsibility.



HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian Bank". The bank realised that only a single-minded focus on product quality and service excellence would help it get there. Today, the bank is proud to say that they are well on their way towards that goal. It is extremely gratifying that efforts towards providing customer convenience have been appreciated both nationally and internationally. However, the company is aware that all these awards are mere milestones in the continuing, never-ending journey of providing excellent service to our customers. They are confident, however, that with customer feedback and support, they will be able to maintain and improve our services. Following are the achievements that the company has achieved over the past few years.

Fe Best Bank Awards 2009
Best Innovator of the year award for our MD Mr. Aditya Puri Second Best Private Bank in India Best in Strength and Soundness Award Best Bank in India'

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

Most Trusted Brand - Runner Up

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'

'Asian Banker Best Retail Bank in India Award 2009 '

Finance Asia Country Awards for Achievement 2008 CNN-IBN Nasscom IT User Award 2008 Business India Forbes Asia Asian Banker Excellence in Retail Financial Srvices Asiamoney Microsoft & Indian Express Group World Trade Centre Award of honour Business TodayMonitor Group survey Financial ExpressErnst & Young Award Global HR Excellence Awards - Asia Pacific HRM Congress:
'Best Bank and Best Cash Management Bank'

'Indian of the Year (Business)' 'Best IT Adoption in the Banking Sector'

'Best Bank 2008' Fab 50 companies in Asia Pacific Best Retail Bank 2008

Best local Cash Management Bank Award voted by Corporates Security Strategist Award 2008

For outstanding contribution to international trade services.

One of India's "Most Innovative Companies"

Best Bank Award in the Private Sector category

'Employer Brand of the Year 2007 -2008' Award - First Runner up, & many more

Business Today

'Best Bank' Award

Dun & Bradstreet ± American Express Corporate Best Bank Award 2007 The Bombay Stock Exchange and Nasscom Foundation's Business for Social Responsibility Awards 2007 Outlook Money & NDTV Profit The Asian Banker Excellence in Retail Financial Services Awards Asian Banker
'Corporate Best Bank' Award

'Best Corporate Social Responsibility Practice' Award

Best Bank Award in the Private sector category.

Best Retail Bank in India

Our Managing Director Aditya Puri wins the Leadership Achievement Award for India


Banking should be effortless. With HDFC Bank, the efforts are rewarding. No matter what a customer's need and occupational status, we have a range of solutions that are second to none. Whether you're employed in a company and need a simple Savings account or run your own business and require a robust banking partner, HDFC Bank not only has the perfect solution for you, but also can recommend products that can augment your planning for the future.

Banking should be effortless. With HDFC Bank, the efforts are rewarding. No matter what a ustomer's need and o upational status, we ha e a range of solutions that are se ond to none. Whether ou're emplo ed in a ompan and need a simple Sa ings a ount or run our own business and require a robust banking partner, HDFC Bank not onl has the perfe tsolution for ou, but also an re ommend produ ts that an augment our planning for the future.

These a ounts are primaril meant to in ul ate a sense of sa ing for the future, a umulating funds o er a period of time. Whate er our o upation, we are onfident that ou will find the perfe t banking solution.

Savi gsMax No Frills Senior Citizens Retail Trust Ki s Advantage Pension Savings Family Savings Kisan Club Savings

Payroll Regular Premium Defence Kisan No Frills Savings Reimbursement


i gs Plus



#! " 


%$ "







Cl ssi

Now, with an HDFC Bank Current A ount, experien e the freedom of multi it banking! You an ha e the power of multi-lo ation a ess to our a ount from an of our 1412 bran hes in 528 ities. Not onl that, ou an do most of our banking transa tions from the omfort of our offi e or home without stepping out. We make it our business to help ou with our business b offering ou a Current A ount with all the benefits ou need to sta ahead of our ompetition. At HDFC Bank, we understand that running a business requires time and mone , also that our business needs are onstantl e ol ing. That's where we ome in. We pro ide ou with a hoi e of Current A ount options to ex lusi el suit our business - whate er the si e or s ope.

Open an HDFC Bank Current Account & control your business operations centrally. Plus Regular Apex Trade RFC Domestic Max Premium Flexi Current

FI ED DEPOSIT Long-term in estments form the hunk of e er bod 's future plans. An alternati e to simpl appl ing for loans, fixed deposits allow ou to borrow from our own funds for a limited period, thus fulfilling our needs as well as keeping our sa ings se ure. Regular Fixed Deposit 5 Year Tax Saving Fixed Deposit SuperSaver Sweep-In







HDFC BANK is one of the leading Depository Participant (DP) in the country with over 8 Lac demat accounts. HDFC Bank Demat services offers you a secure and convenient way to keep track of your securities and investments, over a period of time, without the hassle of handling physical documents that get mutilated or lost in transit. HDFC BANK is Depository participant both with -National Securities Depositories Limited (NSDL) and Central Depository Services Limited (CDSL). Features and Benefits As opposed to the earlier form of dealing in physical certificates with delays in transaction, holding and trading in Demat form has the following benefits: Settlement of Securities traded on the exchanges as well as off market transactions. Shorter settlements thereby enhancing liquidity. Pledging of Securities. Electronic credit in public issue. Auto Credit of Rights / Bonus / Public Issues / Dividend credit through ECS. Auto Credit of Public Issue refunds to the bank account. No stamp duties on transfer of securities held in demat form. No concept of Market Lots. Holding / Transaction details through Internet / email.


HDFC Bank Ltd provides convenient facility called 'SPEED-e' (Internet based transaction) whereby account holder can submit delivery instructions electronically through SPEED-e website ( SPEED-e offers secured means of transaction processing

eliminating preparation of instruction slips and submission of the same across the counter to the depository participant. The 'IDEAS' facility helps in viewing the current transactions and balances (holdings) of Demat account on Internet on real time basis.

Looking for a safe storage place for your valuables?

A Safe Deposit Locker with HDFC Bank is the solution to your concern. Located at select branches in cities all over the country, our lockers ensure the safe keeping of your valuables. Advantages / Key Benefits Wide Availability. Lockers available in various sizes. i.e. Small, Medium, Large and Extra Large with varying rents. Lockers are rented out for a minimum period of one year. Rent is payable in advance. No deposits are required to avail a locker. Just open an account and get the locker facility OR The rent may be conveniently paid from your deposit account with us. Direct debits for locker rentals from your account rid you of the hassles in writing out cheques. There is a nominal annual charge, which depends on the size of the locker and the centre in which the branch is located.

HDFC Bank Imperia Banking

HDFC Bank Imperia Premium Banking programme is designed for the royalty of today - you. It seeks to enhance the exclusivity that you are accustomed to and pampers you with services that others can only dream about.

Be it a dedicated Client Relationship Manager, customised investment advisory or exclusive privileges, Imperia takes care of every little detail to ensure a banking experience like no other.

HDFC Bank Preferred Banking

If you expect more from everything, even your bank, we invite you into the world of exclusive banking. Where you will never again have to wait to be served. With our HDFC Bank Preferred Programme, your comfort always comes first. Ideal for seasoned professionals or businessmen, this programme will provide you with a banker dedicated to take care of all your banking and investment needs. It also means you get preferential rates on various banking products and other exclusive benefits.

HDFC Bank Classic Banking

If you want to experience banking beyond the ordinary, our HDFC Bank Classic Programme is just for you. Becoming an HDFC Bank Classic customer entitles you to a host of benefits, including a bouquet of preferentially priced products and specialised Investment solutions.


Our range of Cards helps you meet your financial objectives. So whether you are looking to add to your buying power, conducting cashless shopping, or budgeting your expenditure, you will find a card that suits you.


Besides arming you with unmatched spending power, our Credit Cards are designed to meet your unique needs. Choose one that's tailored for you. The best credit cards are available here, including even the online credit cards service Netsafe.

Classic Cards Sil er redit ard alue Plus

Special Benefit Cards.

Premium Cards Gold Credit Card Titanium Credit Card Woman's Gold Card Platinum Plus Credit Card Visa Signature Credit Card World MasterCard Credit Card.

Commercial Cards. Corporate Platinum Credit Card Corporate Credit Card Business Credit Card

What if

omplete and instant a ess to the mone in our a ounts without the risk or hassle of arr ing ash. Choose from: Classic Cards Eas Shop International Debit Card Specialised Cards Eas Shop International Business Debit Card Eas Shop Woman's Ad antage Debit Card Eas Shop NRO Debit Card Kisan Card Eas Shop Pro Gold Debit Card Premium Cards Eas Shop Gold Debit Card



ARDS our bank a ount with ou? HDFC Bank Debit Cards gi e ou

ou ould arr


Besides offering convenience, our Prepaid Cards have been tailored to answer your travel and gifting needs.

ForexPlus Cards GiftPlus Cards Prepaid Gift Card - Gift the freedom of choice! Prepaid Travel Card - to manage your overseas expenses. FoodPlus Cards Prepaid FoodPlus Card - Freedom from cumbersome meal vouchers. MoneyPlus Card The Corporate Payment Card - Freedom from cash disbursement / administrative hassles.


Haven't you occasionally dreamt of buying a PC, a car of your choice or even travelling abroad? Your dreams are now within your reach. Whatever your need, we offer an entire range of loan products. Personal Loans A wedding in the family. Maybe your house needs renovation? Our range of Personal Loans brings you one step closer to your dreams. SmartDraft Need additional funds? SmartDraft offers you an easy-to-use overdraft facility of up to 3 times your salary Home Loans Get the home of your dreams - with a little help from us. Two Wheeler Loans With flexible payment options and easy repayment, our Two Wheeler Loan offers the perfect excuse to purchase that bike you've always wanted.

New Car Loans With flexible payment options and easy repayment, our Two Wheeler Loan offers the perfect excuse to purchase that bike you've always wanted. Gold Loans With HDFC Bank's Gold Loan, you can get an instant loan against your gold jewellery and ornaments. The procedure is simple, documentation is minimal and approval is quick. Educational Loans Bridging the gap between you and higher education.




Wherever you are, your bank is always accessible. Experience total control and convenience with our range of innovative services. NetBanking NetBanking lets you manage your account from the comfort of your mouse - anytime, anywhere. Credit Cards online Access your Credit Cards account anytime, anywhere. Phone Banking Your phone is now tour Bank. InstaAlerts Get regular updates on your bank account on your mobile phone or email ID. MobileBanking Access your bank account and conduct a host of banking transactions and inquiries through your mobile, with our unique MobileBanking service.

ATM 24-hour access to cash, view mini-statement, order cheque books, recharge your prepaid card... all from our wide network of over 1200 ATMs. Email Statements HDFC Bank introduces Email Statements for all its Savings & Current account holders. Branch Network Our sophisticated computerised network gives you the flexibility of accessing your Savings or Current Account from any of our over 1416 branches and over 3382 ATMs across India.



All amounts in millions except per share amounts.
ASSETS 03/2008 03/2007 03/2006 03/2005





Cash and Due from Banks Restricted Cash Fed. Funds Sold/Securities Purchased Interest-Bearing Dep at Other Banks Investment Securities, Net Loans Unearned Premiums Allowance for Loans and Lease Losses

3,678.40 1,868.80 1,606.10 861.50 0.00 0.00 0.00 199.40 0.00 0.00 94.40 0.00 0.00 0.00 0.00 0.00 13,307.50 7,059.00 6,147.90 4,683.50 18,193.10 12,639.10 10,158.40 5,960.02 0.00 0.00 0.00 0.00 318.40 185.90 1,271.90 80.02
17,874.70 12,453.20 8,886.50 5,880.00

Premises and Equipment Due from Customers Acceptance Trading Account Securities Other Receivables Accrued Interest eferred Acquisition Cost Accrued Investment Income Separate Account Business Time Deposits Placed

348.90 0.00 60.10 0.00 282.30 0.00 0.00 0.00 147.90

241.20 0.00 99.40 0.00 365.30 0.00 0.00 0.00 297.40

195.90 0.00 66.20 0.00 194.80 0.00 0.00 0.00 0.00

162.40 0.00 29.30 0.00 112.60 0.00 0.00 0.00 0.00

Intangible Assets Other Assets

0.00 0.00 1,981.20 1,123.40
37,681.00 23,507.70

0.00 590.80

0.00 209.20

17,782.60 12,137.90

Non-Interest Bearing Deposits Interest Bearing Deposits Short Term Debt Other Liabilities Bankers Acceptance Outstanding Fed. Funds Purchased/Securities Sold Accrued Taxes Accrued Interest Payables Other Payables Capital Lease Obligations Claims and Claim Expense Future Policy Benefits Unearned Premiums Policy Holder Funds Participating Policyholder Equity Separate Accounts Business Minority Interest Long Term Debt

7,178.00 17,957.20 3,235.30 3,984.70 0.00 1,099.50 0.00 418.30 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 11.50 816.70

4,589.40 11,242.30 2,215.10 2,515.00 0.00 243.60 0.00 395.30 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 7.50 779.60

3,307.60 9,221.70 1,701.40 1,735.70 0.00 0.00 0.00 185.80 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5.00 382.80

2,437.10 5,897.20 1,423.20 134.00 0.00 0.00 0.00 1,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 115.30

16,540.00 11,006.80

Preferred Stock Equity Common Stock Equity Common Par Additional Paid In Capital Cumulative Translation Adjustment Retained Earnings Treasury Stock Other Equity Adjustments Foreign Currency Adjustments Net Unrealized Loss/Gain on Investments Net Unrealized Loss/Gain on Foreign Cur Net Other Unearned Losses/Gains

0.00 0.00 0.00 0.00 2,979.80 1,519.90 1,242.60 1,131.10 88.60 74.10 70.40 71.00 1,766.00 701.30 602.60 591.20 0.00 0.00 0.00 0.00 776.30 568.50 411.10 295.10 0.00 0.00 0.00 0.00 348.90 176.00 158.50 173.80 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2,979.80 1,519.90 1,242.60 1,131.10



Total balance sheet size increased by 33.8% to Rs.2979.80 million as of June 30, 2008 over June 30, 2007. Total deposits were Rs. 17,957.20 million, an increase of 22.1% over Rs. 11,242.30 million as of June 30, 2004. Savings Account deposits which remain core to the bank¶s strategy of building stable, low-cost source of funds and reflect the strength of the retail liability franchise, were at Rs.12, 925 million, an increase of 48.1% over June 30, 2007. Current account deposits as of June 30, 2008 were Rs.10, 320 million, up 31.0% over June 30, 2007. The Bank¶s total customer assets (including advances, corporate debentures, securitised paper, etc) increased from 23507.70 million as of June 30, 2007 to Rs.37681.00 million as of June 30, 2008, a growth 39.6%. Retail loans grew 35.8% on a year-on-year basis to Rs.18193.10 million and now form 50.5% of gross advances as against 45.2% of gross advances as at June 30, 2007. There has been an increase in the retained earnings from June 2007 [Rs. 568.50 million] to Rs 776.30 million in June 2008.

During the current financial year so far, the branch network has been expanded to 495 outlets in 217 cities from 330 outlets in 169 cities in June 2008. As of June 2008, the number of debit cards issued by the bank crossed 3.1 million while credit cards issued touched the1.5 million mark. Portfolio quality as of June 30, 2008 remained healthy with net non-performing assets at 0.2% of customer assets and 0.3% of advances. Capital Adequacy Ratio (CAR) was 11.9% against the regulatory minimum of 9%. Tier I CAR was at 9.5%.


To conclude the above made analysis we can quite easily see that over the past few years the financial position of the bank has moved up in a positive direction. There has been growth in assets while as liabilities have been kept under control. This indicates the fact that the bank has been able to meets its requirements without any difficulty. The bank has also gained recognition as is quite evident from the fact that the number of deposits has increased significantly. There has been increase in the number of credit and debit cards issued which provides support to the

fa t that the bank is growing da b da . The spending power of the organisation is impro ing ear b ear as is lear from the data relating to retained earnings. The bank has greater mone at its disposal whi h uses for gaining additional assets and strengthen its base. The bank also uses the additional mone for promotional purposes so that it an ompete with its ore ompetitors. In short the bank is progressing er rapidl and is almost on the erge of be oming the best in the market.

From the graph abo e it follows that the ompan o er a period of six (6) ears has been su essfull been able to pa di idend to its shareholders onsistentl . The er fa t speaks about the finan ial health of the ompan . A ompan pa s out di idend ifit gains suffi ient profits so as to meet the requirements of the organisation as well as its members. This means that the ompan has been onsistentl been on the path of growth and su ess. Also that the






earnings per share has been increasing at an increasing rate signifies the fact that the company¶s shares have been valuing more with each passing year and thus adding to the growth and profits of the organisation.


In the future, HDFC Bank plans a major thrust in the area of e-commerce. It plans to get into both Business to Business (B to B) and Business to Customer (B to C) areas of e-commerce. The Banks' strategy in the area of B to B is in three directions:

Sesami - (JV with Singapore Telecom, with a 40% stake of HDFC bank), where it will be setting up India's first truly B to B horizontal portal catering to E-Procurement, E-Auction and Supply Chain Management for corporates. The Cash Management /Settlement for this portal would be through HDFC Bank. Sesami India, due to linkage into Sesami Singapore is an inter-operable portal due to their connectivity into BTT (UK), NTT (Japan), Marketsite.NET (USA), OPTUS (Australia), etc. Additionally, this portal would be able to integrate with several other verticals that are being set up in the country adding functionality and settlement mechanisms. ENet - (Corporate Internet banking) where corporates can access their account relationships (CC/OD, Trade, Bills, Foreign Exchange and Cash Management) through the Net and where they can link up their suppliers through their back office ERP's and arrange for online settlement of funds. ENet will closely integrate with Sesami for the funds settlement and will act as the Netbased front end. Settlement Bank for other E-com portals: Besides targeting corporates, the bank will facilitate settlements of other E-Com portals coming up in the country that do not wish to link up with Sesami. This is a huge segment considering the B to B business projections in Asia and India. In the B to C area, the Bank has plans for a shopping mall. The bank will be setting up the first online payment gateway in the country, in association with a subsidiary of SingTel (National Computer Systems, Singapore) which will facilitate card payments for virtual transactions thereby providing acquiring Bank services to other portals.

The bank also plans to set up an e- brokerage. The bank is the largest Clearing Bank to Stock Exchanges in the country (NSE, BSE, CSE, DSE, ASE, HSE, and OTCEI) and has over 250,000 depository accounts. With the e-brokerage services, the bank will offer all the services required

to facilitate equity investments. Additionally, we would handle the payments (funds & securities transfers from DP accounts) for other e-Brokerages being set-up in the country.

HDFC Bank to relocate branches to un-banked rural Punjab HDFC Bank, after the merger with the Centurion Bank of Punjab, has chalked out a plan to relocate about 25-30 branches in rural Punjab to tap the unbanked areas. The bank aims to strengthen its distribution network by focusing on agriculture, commodity and retail business. Sharing details about the future plan with FE, Govind Pandey, regional head- north, HDFC Bank said, ³We have acquired over 100 branches of Centurion Bank of Punjab in Punjab and Haryana through merger. But in order to reach out to the interiors we are relocating branches in rural Punjab. We are also mapping the mandis in different districts as potential sites. Surveys are on for finalising the new sites and relocation phase will start within the next 3 months. The integration of systems of both the banks has already started and it is likely to be complete within a month or so.´ HDFC Bank has achieved its target of opening new branches for this year with the inauguration of a new branch in Chandigarh on Friday. This takes the count to 29 b ranches in Chandigarh, Panchkula and Mohali Region. The bank now has about 130 branches in Punjab with over 50% branches located in semi-urban and rural areas. Anticipating a further rise in the repo rate by RBI by last week of July, HDFC bank is also gearing up to fight inflation. Govind added further, ³RBI is expected to increase the repo rate hence the interest rates will also go up. This correction does slow down the growth of the banks but we are confident of achieving our growth target of over 50% by the end of this fiscal year.´ HDFC Bank plans to open 300 new branches in India Indian private sector bank HDFC Bank plans to open 300 new branches in the fiscal year 200910, according to reports. Currently, HDFC operates 1,412 branches and 3,295 ATMs in 528 cities in the country. With the addition of the new locations the total branch count would increase to 1,712. According to reports, the bank has obtained necessary regulatory approval to open he new t branches.


The project that I had undertaken was of two folds. One was related to ³servi e qualit

management´ and the other was ³Client Profiling-Preferred customers´. Both the projects were very challenging but I was able to get through both of them quite easily mainly due to the guidance of my project guide and other members of the organisation. I would first like to through some light on the topic related to Client Profiling which is related to Preferred banking.


If you expect more from everything, even your bank, we invite you into the world of exclusive banking. Where you will never again have to wait to be served. With our HDFC Bank Preferred Programme, your comfort always comes first. Ideal for seasoned professionals or businessmen, this programme will provide you with a banker dedicated to take care of all your banking and investment needs. It also means you get preferential rates on various banking products and other exclusive benefits.


The Preferred program has been designed to take care of the most profitable customers of the bank. Currently since profitability data at customer level is not available, the liabilities relationship balance is being used as a surrogate for profitability. Existing large value customers will be upgraded into the Preferred program as and when they reach the required threshold to enter the program. The objectives of the Preferred program are: Enhance the size of the relationship that the Preferred customers have with the bank. Thus growth over the current relationship value remains the foremost objective.



Deepen the relationship by cross selling as many of the bank¶s products and services to the Preferred customers. This will result in higher loyalty and greater profitability of these relationships. Provide the best possible service to these customers. Thus each Preferred relationship will have a Relationship Manager to take care of all service needs. Through a process of referrals from existing Preferred customers and through targeted programs on select customer databases, acquire new Preferred customers into the program.


The following benefits will be available to all Preferred customers: All Preferred customers will have a dedicated Relationship Manager to look after their relationship. The role of the RM will be to offer all products and services of the bank to the customers and make it easy for the customers to avail of these services. The RM will also be responsible to take care of all servicing needs to the Preferred customers. Special price offs or discounts on products and services. The list below provides the discounts available Product Benefits to Preferred All Preferred customers can open multiple Demat a/cs with the annual Folio Maintenance charges waived Demat account This waiver is available even if all the Demat a/cs are linked in to a single SA a/c.

The FMC charges will be waived from 2nd year onwards also provided the account is funded with shares within the first year Transaction charges are levied at 0.03% instead of 0.04% charged to regular customers All Preferred customers can avail of the HDFC Bank Preferred Gold Debit Card for free as long as they are part of the programme Women's Advantage Gold Debit Card is FREE as long as the customer is a part of the Preferred programme Normal Debit Card is free for lifetime with enhanced limits

Debit Card

Customer can avail of a credit card with annual fees waived as Credit Card long as they are part of the programme. Card to be issued as per eligibility Annual Locker rental rates are reduced by 50% for Preferred customers 8 paisa better rates Free by default All customers will receive a combined statement at a monthly Combined Statement Monthly frequency. The statement will provide details of all CASA and FD a/cs where the customer is the 1st holder. Bill Pay Free


Forex At Par Chequebook

Insta Alert Service charges (Non maintenance charges) DD/MC charges Transactions on any


of AQB Waived as long as the customer is part of Preferred programme

Free DD/ MCs up to Rs.1lac per day

non HDFC Bank ATM Self/Third party Cash


deposit / Withdrawal at No limit for SB a/c's. non home branches Preferred customers can enjoy the convenience of anytime, Free e-age banking anywhere banking via free Net Banking, Mobile Banking and Phone Banking Standing Instructions HSL Gold Bars Free Discounted a/c opening at Rs.399 On Purchase of 5g-3%, 8g/10g/20g/50g ± 5.25%

Service Charge waivers Up to Rs.2000 waiver on select charges. Facility of flexi-waiver for transactions Cheque pick-up facility following to waive higher amounts with approval, depending on group profitability Free Customers can nominate funding/ beneficiary accounts and link accounts in the group

CASA sweep-in facility

1. Service charge waivers of up to Rs. 2,000/- annuall


In addition to the above mentioned Price offs/Discounts, Preferred customers will be entitled to a waiver of up to Rs. 2,000/- annually on service charges that the Bank recovers on a whole host of services. Charges included in his list below:

S.No 1. 2. 3. 4. 5. 6.

Item DD/MC charges Interbranch funds transfer charges Stop payment charges Cheque return charges Cheque collection charges DD cancellation charges

S.No 7. 8. 9. 10. 11. Hold mail charges Duplicate statement Certificate of balance FIRC Recovery of old records


1. Following is the criteria to be eligible for the program Savings AQB of 2 lakhs OR Current AQB of 5 lakhs OR FD Relationship of 15 lakhs with at least one CASA account. The tenor of the FD should be at least 6 months. In case more than 1 FD is aggregated to arrive at the 15 lacs limit then all aggregated FD¶s should have a tenor of at least 6 months. The CASA account can be a zero balance CASA account. The criteria for entry into the Preferred program can be satisfied by a single customer (i.e. a single Customer ID) or by multiple customers belonging to a relationship or Group (i.e. A set of multiple Customer ID) belonging to a single group.

In case more than one customer is being grouped into a single relationship, then the grouping should be as per the rules defined later in the product paper. Note: For the purpose of arriving at the relationship size for a single customer or a group comprising of multiple customers, only those accounts in which the Customer(s) is/are the first holder(s) should be considered i.e. The Customer ID necessarily has to be the first holder Customer-ID Once a customer has been grouped under one relationship, the same customer cannot form part of another relationship. At the time of entry of a Group into the Preferred program, all CASA accounts being aggregated to arrive at the qualifying criteria should have been with the bank for one full quarter. Even if one account has not been with the bank for one full quarter and is being considered to reach the qualifying criteria, then the case needs to be approved as an exception by the CH. In case multiple FDs belonging to a Group are being aggregated to arrive at the qualifying criteria, then all FDs need to be of tenors of at least 6 months. In case even if a single FD is of a tenor less than 6 months then an exception approval needs to be obtained from the CH. The RM and the BM who fill up and approve the Program Entry Form have to verify the eligibility is as per the above criteria. The approval of CH has to be taken for any exceptions on eligibility for racing the customer. The entry into the Preferred program will be as per the criteria defined above. All relationships will be continuously monitored every quarter to ensure that at least one of the eligibility criteria is always satisfied by that relationship or group i.e. At least one of the eligibility criteria with respect to SB, CA or Fixed Deposits has to be met.


Rules for grouping S.No Entity . 1. 2. satisfying

the entry criteria Individual

Who can be grouped?

Spouse, children, father, mother, brother, sister

Proprietorship firm Proprietor in the individual capacity and family members as per the grouping criteria for individuals


Partnership firm

All partners in their individual capacity and their family members as per the grouping criteria for individuals


Pvt. Ltd. Company

All Directors in their individual capacity and their family members as per the grouping criteria for individuals

5. 6.

HUF Trust/society

The Karta and Co-parceners in their individual capacity None of the trustees and members of the society can be grouped

Other conditions The Customer ID of the main member in the group should be assigned as the Group ID. Even if there is a single Customer ID in a group, it should be assigned as the Group ID for the single Customer ID. A maximum of 10 Customer ID¶s can form part of a group, beyond which CH approval is required. A Customer ID cannot form part of 2 groups in its capacity as the first account holder id e.g. If Customer ID C1 is part of group G1, then all accounts where C1 is the fist holder

can only be included in group G1. However, in case C1 is a joint holder in some account, then that can be grouped in a different group. Cases not satisfying the above grouping criteria need to be referred to the CH and the BM for exception approval Only one RM will service all members of a group

As stated in the section on eligibility criteria, the relationship size can be met at a group level. In case the branch would like to induct a particular relationship/group that does not meet the entry criteria into the Preferred program then the CH needs to approve the case as an exception. Important The Waiver of Rs. 2,000/ per annum on service charges will be available at a group level All Customer ID¶s within a group will enjoy the price discounts as available under the program

Identification of customer

The Primary responsibility of identifying potential or qualifying customers for the Preferred Program lies with the Relationship Managers. In addition to the RM¶s identification of Potential/Qualifying customers, a list of customers/accounts qualifying for the above program (by Branch), but not yet inducted into the program will be put up by the Product team (HNW Help) at the beginning of each quarter after AQB is computed. This will act as a trigger for the RM to race more customers into his portfolio.

Process of Racing

Branch should forward all requests to CPU for racing Any case that does not meet the relationship size requirement needs to be approved by the CH as an exception before being sent to CPU. CPU will not process any exception cases not signed by the CH. Any case where the grouping logic does not meet the program criteria needs to be approved by the product group before sending to CPU for racing. CPU will not process such cases if not approved by the product group.

To race a customer into the program the RM has to send the following forms duly completed to the CPU: Profiling Form for every individual customer ID in the Group Profiling Form for every non-individual entity in the Group Preferred Program Entry Form Exception sign off from the CH wherever Relationship Size criteria is not met Exception sign off from the Product Group wherever Grouping criteria is not met Debit Card application from for the Preferred Gold Debit Card

In case any of the above forms are not sent or are incomplete, CPU will not race the customer into the Preferred program. On racing the customer into the Preferred program, the following updations/activities will get triggered The customer IDs belonging to the Group will be raced as Preferred OR Deemed Preferred by CPU Group ID will be populated for all customer IDs belonging to the Group by the CPU RM code will be populated in the RM code field by the CPU. The RM can check whether the customer has been raced or not in the host system, 3 days after the Program Entry Form reaches the CPU. In case all customers in the group have signed the Gold debit card form, they will be sent a Gold debit card with higher limits along with a new pin. The existing Debit/ATM card will be hotlisted after 10 days from the date of mailing of the gold debit card The combined statement race will be set for all customers who have been raced into the Preferred program and they will start getting a monthly combined statement for all those CASA and FD accounts where they are the primary holders. In order to get a combined statement the customer should have at least 1 CASA account. All CASA accounts that belong to customer IDs raced into the Preferred Program, will start enjoying a zero balance waiver from the end of that quarter.

Branch activities Post racing Branch Manager/Relationship Manager should check after 3 days whether the Group/Customers have been raced in Finware The BM is required to send a Letter (updated on the Branch Sales Portal) to customers who have been raced into the Preferred Program. The Welcome letter should be sent only to the main cust id in the group i.e. the customer whose cust id has also been used as the Group id of the Group. The Welcome letter will outline the features and facilities available on the product program as well as the process to avail of these facilities. In addition it will also introduce the RM and list his contact details. It will also provide a list of all customer IDs and accounts that have been included in the program.

Ongoing review of Customers in the Preferred program

All customers who have been raced into the program in a particular Quarter will be given the next 2 full quarters to build /grow the relationship above the minimum criteria. A quarter is defines as a calendar quarter i.e. Apr-June, Jul-Sep, Oct-Dec and Jan-March. Thus if a Group is raced into the program mid-way through a quarter, that quarter will be ignored and the first full quarter will commence from the next quarter. After the initial two full quarters, the relationship will be reviewed every quarter to ensure that the minimum criteria are being maintained. Incase the customer is not fulfilling the programme criteria, the following steps need to be undertaken: The RM will counsel the customer at the end of the first quarter in which the minimum criteria of the program is not met after the initial first 2 quarters. The objective of the counselling is to inform the customer that if the criteria are not met in the next consecutive quarter, the facilities under the Preferred program will be withdrawn. The RM will have to follow the deracing process and ensure that a caution letter is sent to the customer. The relationship is then reviewed only after a minimum of one full calendar month basis the AMB post sending the caution letter sent to the customer.

If the customer still does not meet the eligibility criteria, then the process of deracing is initiated by the BM, as per the Deracing Process which is available on the Branch Sales Portal.

Example Customer meets criteria in February and is raced as a Preferred customer during the month of February The 2 full quarters that the customer will get are Apr-June and Jul-Sep. The relationship will first be reviewed in the Oct-Dec quarter and if the criteria are not maintained, the customer needs to be counselled and a caution letter needs to be sent to the customer along with the programme brochure. If the caution letter was sent in the month of January, then the AMB of February will be reviewed. If the customer still does not meet the eligibility criteria, then the BM needs to send the customer details for deracing to HNW Help with a CC to CH/ZH. Once HNW Help confirms that the customer is eligible for racing, the CH/ZH to accord his approval and the Programme Exit Form is sent to CPU by the RM/BM. The documents that have to be attached along with the Programme Exit Form are mentioned on the Branch Sales Portal under the Deracing Process. Please note that the deracing request will be rejected in case the complete set of documents is not provided to the CPU.

Customers who do not maintain the minimum criteria for 2 consecutive quarters will be exited from the program. Any case that is to be continued in the program after not meeting criteria for 2 consecutive quarters, will need to be recommended for approval to the product group. These cases can continue in the program only after obtaining the approval of the Product Manager.

MIS for Reviewing and assisting racing

Besides the Quarterly list of Customers who meet the criteria but have not been raced as Preferred, the Product Team will also publish every quarter (after AQB is computed) on the Retail MIS, the list of customers who have not maintained the minimum criteria for one quarter.

Process of exiting a customer from the program The RM will have to send the Exit Form to CPU so that the customer can be exited from the Preferred program. This form will also have to be signed by the Branch Manager. To derace customers from the programme, the deracing process has to be followed. The same has been uploaded on the Branch Sales Portal. Based on the Exit request received from the Branch, the following actions will be triggered: CPU will remove the Preferred race from all customer IDs belonging to the Group The combined statement race will be removed so that all customers in the Group will stop getting monthly statements and start getting quarterly statements from that quarter The accounts belonging to the Group will get levied the min AQB charges from the same quarter in case the accounts do not maintain the required product AQBs. All preferential pricing and offers will be withdrawn from the customer. The services of the Relationship Manager will be stopped.

Once a Group has been exited from the Preferred Program, there will be a cooling period of 6 months before re-inducting the same Group in the Preferred Program.

Ethnic codes

There will be separate ethnic codes to track Preferred customers and Deemed Customers.

Treatment of existing portfolio

Customers in existing portfolio will be treated as explained in the below example: Customers that meet the Program criteria as on Jan 1, 2008 will follow the above guidelines for review effective Jan 1 i.e. these customers will get 2 full quarters beginning Jan 1 before the next review. Customers who do not meet the program criteria as on Jan 1, 2008, will be put on review for the Jan-March quarter and will need to be exited from the program in April if they do not meet criteria in the Jan-Mar quarter.

Waivers and Flexi-Waivers

Waiver and Flexi-waiver will be at Group level Standard waiver will be Rs 2,000/ Higher waiver amount can be offered to large value relationships, through exception sign-offs. These cases can be waived only with the approval of the Product Head. These waivers will be based on profitability of the relationship and will be approved by the Product Head based on the RM¶s request. The total waiver amount will be lower of 20% of Profitability or Rs 20,000/. Maximum waiver amount will be Rs 20,000/ The above charges must be computed and stored at the respective branch to track the waiver limit.



Group ID«««««««««««««Customer ID««««««««««««««««. Name«««««««««««««««««««««««««««««««««««« Tel(R)««««««««««««««..Tel(O)««««««««««««««««««.. Mobile No««««««««««««..E-mail ID«««««««««««««««««« Date of Birth««««««««««««««««««..

Please tick mark the relevant boxes Gender «««.Male Martial status«««Married Education««««Undergraduate Female Single Graduate Postgraduate Doctorate Professional

Occupation«««..Salaried Student Others

Self ±Employed




Type of company you work in««««.Proprietorship Private Ltd Govt. Sector 2 wheeler Pvt. Sector Bank


Public Ltd

Vehicle owned««««..4 wheeler Main Bank «««««HDFC BANK against a loan

Both Foreign Bank Purchased

Bank 1««««««««««««««.Bank 2««««««««««««««««« Bank 3««««««««««««««Bank 4«««««««««««««««««..

Relation ship managers code and sign«««««««««««««««««««««


Primary Customer ID««««««««««««««. Primary Customer ID««««««««««««««.. No of Customers in Group««« RMs Name««««««««««. Date of Preparation

Does the customer invest in mutual funds/shares (Y/N)if yes does the customer have



DEMAT HSL Account Mutual Funds Online Mutual funds Advisory

Has the customer availed of:

PRODUCT Forex Gold bar Gold Debit Bar Net Banking Phone Banking/Mobile Banking Insta Alert/Bills Pay


Does the customer hold a credit card (Y/N)««««.If yes is it active(Y/N)«««.. Does the customer have term deposit with us(Y/N)««««. How many of his family members have the term deposits with us«««««. Does the customer /any of his family members have insurance with us? (Y/N)««««..Have all his family members availed of an insurance policy through us(Y/N)««««. Does the customer have loan product(Y/N)««««.

Based on the sensitivity of the relationship and the profile of the customer, define desired frequency of contact Daily Weekly Fortnightly Monthly


The job that I had been given by the organisation was to call out these prestigious customers of the bank and gather relevant information regarding them. The organisation was updating the profile of its preferred customers so that it could know their current financial status and other personal details. The purpose of the study was to gather enough information so that the same could be used by the organisation in providing relevant services and products to its preferred clients so as to keep them satisfied and loyal to the company. The organisation gave me this information so that I could understand how beneficial and important such clients were to the bank. Also that I might need to share relevant information with the clients while talking to them, the organisation handed over this information to me. In fact, the above information came in handy when many customers asked me about need for profiling and grouping. Had the organisation not given me the required notes I would definitely not been able to complete my required project. The second project undertaken by me was ³Service Qualit Management´. The basic motive of this project was to know the satisfaction level of the preferred customers banking with the organisation. Since they were special to the organisation, hence the organisation thought of doing survey so that any discrepancy or dis-satisfaction among the preferred clients could be removed.



Quality standards are ultimately defined by the business customers. Actual performance by the service provider or the providers perception of quality are of little relevance compared with the customer perception of the service.´ Good´ service results when the service provider meets or exceeds the customer expectations. As a result, many management experts argue that service companies should carefully position themselves so that customers expect a little less than the firm can actually deliver. The strategy: under promise and over deliver.

The dimensions of service quality Because business services are intangible and nonstandardized, buyers tend to have greater difficulty in evaluating services than in evaluating goods. The inability to depend on consistent service performance and quality may lead service buyers to experience' more perceived risk. As a result, buyers utilize a variety of prepurchase information sources to reduce risk. Information from 'a current user (word of mouth) is particularly important. In addition, the evaluation process for services tends to be more abstract, more random, and more heavily based on symbology rather than on concrete decision variables. Research provides some valuable insights into how customers evaluate service quality. From the below table we can know that customer focus on five dimensions in evaluating service quality: reliability, responsiveness, assurance, empathy, and tangibles. Among these dimensions, reliability- delivery on promises- is the most important to customers. High quality service performance is also shaped by the way in which the service is provided by frontline service personnel. To the customer, service quality represents a responsive employee, who can inspire confidence and one who adapts -to _the unique needs or preferences of the customer- and delivers the service in a professional manner. In fact the performance of the employee who is in contact with the customer may compensate for temporary service quality problem. By promptly acknowledging the error and responding quickly to the problem, the service employee may even strengthen the firm¶s relationship with the customer.

Customer Satisfaction and Loyalty Four components of a firms offering and its customer linking processes affect customer satisfaction. The basic elements of the product or service that customers expect all com petitors to provide Basic support services, such as technical assistance or training that makes the product or service more effective or easier to use. A recovery process for quickly fixing product or service problems Extraordinary services that so excel in solving customers' unique problems or in Leading service firms carefully measure and monitor customer satisfaction because it is linked to customer loyalty and, in turn, to long-term profitability.

Zero Defections The quality of service provided to business customers has a major effect on customer ³defections"-customers who will not come back. Service strategists point out that Customer defections have a powerful impact on the bottom line. As a company's relationship with a customer lengthens, profits rise-and generally rise considerably. For example, one service firm found that profit from a fourth-year customer is triple that from a first-year customer. Many additional benefits accrue to service companies that retain their customers: They can charge more, the cost of doing business is reduced, and the long-standing customer provides "free" advertising. The implications Ire clear: Service providers should carefully track customer defections and recognize that continuous improvement in service quality is not a cost, an investment in a customer who generates more profit than the margin on a one time sale.


In order to find out the awareness of the service being offered a questionnaire was prepared that locked into various aspects of the service.

It would help us to study as to what is the frequency of foot fall of various kinds of account holders at the branch, what are the major issues for which they visit the branch and actually how far is the branch form their home etc. In the later part of the questionnaire we kept questions that would motivate people to enroll for the service on the spot, thus the purpose was to check for awareness, educate customers about the service and motivate them to enroll for the same. The questions were devised in such a manner that the satisfaction level of the clients could also be known. The questionnaire was mainly to target the walk ins at the branch and the people who already have a bank account with HDFC Bank as otherwise the service will not make any sense to non account holders.

Th questionn i e th t as used is given below: -


A) Advertisement B) Branch C) Friends D) Internet

A) Good B) Average

A) Query handling Service B) Easy access C) Products D) Customer


A) Dail

B) Weekl

C) Fo tnightl

D) Monthl








A) Saving Account Other B) Current Account C) Fixed Deposit D) 


A) Yes

B) No


A) Yes

B) No


A) Excellent

B) Good

C) Average D) Below Average


A) Excellent

B) Good

C) satisfactory

D) Same




0% Daily

Almost 55% respondents visit the branch weekly followed by 25% respondents who visit the branch fortnightly while only 20% of the respondents visit the branch monthly. Large proportions of the respondents visit the branch weekly and fortnightly which is a high frequency. 





Branch Internet
15% 45%


The pie chart indicates that a large proportion of the individuals came to know about the bank with the onset of the branch itself. This indicates that emphasis needs to be done on other marketing strategies so that people become aware of the new branch well before its coming into being.  HOW DO YOU RATE YOUR EXPERIENCE WITH HDFC BANK?


A large number of respondents were happy doing banking with HDFC. However, some were not so happy and were of the view that the bank at times tends to be lethargic in its approach and that a lot of their time gets wasted due to carelessness of the employees.  WHAT ATTRACTS YOU MOST TOWARDS HDFC BANK?

30 %

30 % Query Hand. Products Easy Access

20 %
20 %

Cust. Service

Reports showed that a large number of individuals were happy with the products being offered by the bank. Also the query handling procedure was appreciated by many. Overall, the customers felt that the bank had a variety of things to offer that attracted them towards it.  WITH WHICH PRODUCT OF HDFC ARE YOU ASSOCIATED WITH?



Fixed Deposits

Saving A/C

A large number of individuals were holding the savings account. All of them were of the view that they want to save for a rainy day.´ One never knows when you need cash immediately and in lump sum´, said one customer. However, there were also many current account holders who were primarily businessman. Some of them also had done fixed deposits.  ARE YOU SATISFIED WITH THE CURRENT PRODUCTS AND SERVICES BEING PROVIDED TO YOU BY THE BANK?


YES NO 85%

A number of individuals were quite happy with the services and products offered by the bank. However, some 15% individuals complained that their needs were not being fully filled by the current products and demanded additional services to be offered. Their grievances were recorded and brought before the management.  ARE YOU SATISFIED WITH THE AFTER SALE SERVICE OF THE PRODUCTS BEING DELIVERED TO YOU?


Almost a greater proportion of the individuals were happy with the after sale service being offered to them. Some were so angry that they threatened to close ties with the bank. They complained that they had applied for the credit cards but it had been 3 months and still they hadn¶t got it. There were other issues too which the 13% of the unsatisfied individuals complained.  HOW DO YOU RATE THE QUERY HANDLING/PROBLEM SOLVING PROCEDURE OF HDFC BANK?

10% 20%

Excellent Good
15% 55%

Average Below Avg.

With regards to query handling and problem solving, almost all the customers were happy with the way their queries were being solved and that too in due time. Only a few c ustomers gave negative feedback which is negligible with regards to the overall feedback.  HOW DO YOU RATE HDFC WITH REGARDS TO THE OTHER BANK(S) YOU HAVE BANKED WITH [IF ANY]?



Almost more than 50 % of the individuals were happy with HDFC bank. They were of the view that HDFC was able to give them better services and products than their earlier bank. Some were of the view that their previous bank and HDFC provided almost similar products and services. They were not able to find any distinguishing feature between their previous and current bank. Overall, more than not individuals were happy with the change of bank.


I would hereby like to share some view points of mine with the organisation which according to me, if brought into action can prove beneficial.


By encouraging people to use our service form the branch is very important but the habit needs to be changed and the branch is the first place from where it should start. By putting up corporate drop boxes at the branch, lot of convenience can be provided to the customers as well as for the employees working in the organisation.

Queue Generally due to heavy traffic at the branch customers have to wait, executives should take advantage of this time to explain and enroll customers for the latest services and products.

Banners Banners do catch the eyes of existing customers for sure; banners must be put up at the ATM¶s as people do tend to read things at the ATM¶s

ATM Slips After any transaction from the ATM customers generally do take the slips to check balance. The back side of the slip can be used to provide information to the customers about the advantages of banking with them with respect to other banks-just a medium for promotion.

Positioning The bank must consider positioning and mapping themselves on the minds of the people that they are customer oriented and always explore ways to make banking easier for them.

Television Ads Television Ads will definitely make a difference in the attitude of the people; however financial part needs to be considered.

News paper ads News paper ads will allow us to reach out and educate maximum customers about our bank and thus create a scene of awareness among the masses.

Awareness On the net

We can give out information regarding our bank at various popular e-mail sites or even auction sites.


The banking scenario has changed drastically. The changes which have taken place in the last ten years are more than the changes took place in last fifty years because of the institutionalisation, liberalisation, globalisation and automation in the banking industry. Indian banking system has several outstanding achievements to its credit, the most striking of which is its reach. Indian banks are now spread out into the remote corners of our country. In terms of the number of branches, India¶s banking system is one of the largest in the world. According to the Banker 2004, India has 20 banks within the world¶s top 1000 out of which only 6 are within the top 500 banks. Today banking sector is marked by high customer expectations and technological innovations. Technology is playing a crucial role in the day to day functioning of the banks. These banks that have harnessed and leveraged technology best have a strategic advantage. To face competition it is necessary for banks to absorb the technology and upgrade their services. In today¶s context banks are following the strategy of ³relationship banking´ which is need of the hour. The customer services are playing a very significant role in banking business. In India major events leading to deregulation, liberalisation and privatisation have unleashed forces of competition, making the banks run for their business, not only to create the customer, but more difficult to run for their business, not only to create the customer, but more difficult to retain the customer. Prompt and efficient customer service, thus, has become very significant. Relationship banking is the new paradigm for survival and success, embracing a µshare of customer¶ approach to growth by identifying, protecting and expanding customer relationship. Commercial banks are coming up with more and more vacancies, and the banking sector now has more new jobs than any other sector. Right from the branch level to the highest level, there is tremendous range of opportunities available in the sector. Jobs in this sector can be both rewarding and enjoyable, as you get opportunities to learn about business, interact with people and build up clientele. Both government and private players are currently offering a plenty of

jobs in this sector. So, this is great news for all those who are thinking to go into the banking streams.

BIBLIOGRAAPHY DFC%20Top%20200%20Fund%20(G)/ffdesc/HDFC%20Asset%20Management%20Co. %20Ltd./imid/MZU009/imffid/HD. 73/.

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