HDFC Bank

Introduction:
HDFC Bank Limited is an Indian financial services company based in Mumbai,
Maharashtra. It was incorporated in 1994. HDFC Bank is the fifth largest bank in India by assets.
It is also the largest bank by market capitalization as of 1 November 2012. As on Jan 2 2014, the
market cap value of HDFC was around USD 26.88B, as compared to Credit Suisse Group with
USD 47.63B.
The bank was promoted by the Housing Development Finance Corporation, a premier
housing finance company (set up in 1977) of India. As of 31 March 2013, the bank had assets of
INR 4.08 trillion. For the fiscal year 2012-13, the bank has reported net profit of INR 69 billion,
up 31% from the previous fiscal year.
History:
HDFC Bank Limited was incorporated in August 1994. It was promoted by Housing
Development Finance Corporation Limited (HDFC), India's largest housing finance company. It
was among the first companies to receive an 'in principle' approval from the Reserve Bank of
India (RBI) to set up a bank in the private sector.

The Bank started operations as
a scheduled commercial bank in January 1995 under the RBI's liberalization policies.
On 26 February 2000, Times Bank Limited owned by The Times Group (Bennett,
Coleman & Co.) was merged with HDFC Bank Ltd. This was the first merger of two private
banks in India. Shareholders of Times Bank received 1 share of HDFC Bank for every 5.75
shares of Times Bank.
On 23 May 2008, HDFC Bank acquired Centurion Bank of Punjab taking its total
branches to more than 1,000. The amalgamated bank emerged with a base of about Rs. 1, 22,000
Crore and net advances of about Rs. 89,000 Crore. The balance sheet size of the combined entity
is more than Rs. 1, 63,000 Crore.
Products
HDFC Bank offers the following four core products:

HDFC's 4
Core
Products
Personal
Banking
NRI Banking
SME
Banking
Wholesale
Banking

SERVICES
Wholesale banking services
HDFC Bank provides a range of commercial and transactional banking services, including
working capital finance, trade services, transactional services, cash management, etc to large,
small and mid-sized corporates and agriculture-based businesses in India. The bank is also a
leading provider of these services to its corporate customers, mutual funds, stock exchange
members and banks.
Retail banking services
HDFC Bank was the first bank in India to launch an International Debit Card in association with
VISA (Visa Electron). The bank also issues the Master Card Maestro debit card. The Bank
launched its credit card business in late 2001. By the end of June 2013, it had a credit card base
of 5.94 million. By March 2012, the bank had a total card base (debit and credit cards) of over
19.7 million The Bank is also one of the leading players in the "merchant acquiring" business
with over 240,000 point-of-sale (POS) terminals for debit / credit cards acceptance at merchant
establishments. The Bank is positioned in various net based B2C opportunities including a wide
range of Internet banking services for Fixed Deposits, Loans, Bill Payments, etc.
Treasury
The bank has three main product areas - Foreign Exchange and Derivatives, Local Currency
Money Market & Debt Securities, and Equities. These services are provided through the bank's
Treasury team. To comply with statutory reserve requirements, the bank is required to hold 25%
of its deposits in government securities. The Treasury business is responsible for managing the
returns and market risk on this investment portfolio.
OPERATIONS
As of 30 September 2013, HDFC Bank has 3,251 branches and 11,177 ATMs, in 2,022 cities in
India, and all branches of the bank are linked on an online real-time basis. The Bank has
overseas branch operations in Bahrain and Hong Kong.
HDFC Bank has two subsidiaries:
HDB Financial Services Limited (HDBFS): HDBFS is engaged in retail asset financing. It is
a non-deposit taking non-bank finance company (NBFC). Apart from lending to individuals, the
company grants loans to micro, small and medium business enterprises. It also runs call centers
for collection services to the HDFC Banks retail loan products. HDFC Bank holds 97.4% shares
in HDBFS. As of March 31, 2013, HDBFS has 230 branches in 184 cities. During the FY 2012-
13, HDBFS had turnover of INR 9.6 billion and profit after tax of INR 1 billion. It has 6,404
employees as of 31 March 2013.
HDFC Securities Limited (HSL): HSL is engaged in stock broking. As of March 31, 2013,
HDBFS has 194 branches across 150 cities. HDFC Bank has 62.1% shareholding in HSL.
During the FY 2012-13, HSL had turnover of INR 2.3 billion and profit after tax of INR 668
million. During the year, the Company received the Best e-Brokerage Award - 2012 in the
Outlook Money Awards in the runner up category.
AWARDS 2013
Outlook Money Awards 2013 Best Bank in Large Banks Category
IBA Innovation Awards Most Innovative Use of Technology
Dun & Bradstreet Polaris Financial Technology
Banking Award 2013
Best Private Sector Bank Technology Adoption
Best Private Sector Bank Retail
Overall Best Private Sector Bank
Institutional Investor
Best Bank in Asia
Mr. Aditya Puri Best CEO
Forbes Asia Fab 50 Companies List for the 7
th
year
Sunday Standard Best Banker Awards
Private Sector Bank: Large
Safest Bank: Large
Mr. Aditya Puri: Top Achiever
Asia Money 2013
Best Domestic Bank in India
Mr. Aditya Puri: Best Executive in India
MACCIA Awards 2013 Best in Financial Services: Bank Category
UTI Mutual Fund CNBC TV 18 Financial
Advisory Awards 2012
Best Performing Bank Private
Dun & Bradstreet Corporate Awards 2012 Best in Banking sector
NDTV Profit Business Leadership Awards
2012
Winner in the banking category
NASSCOM CNBCTV18 IT Innovation
Award
Best IT Driven Innovation in Banking (COMMERCIAL)
The National Quality Excellence Awards Best Customer Service Result
FE Best Bank Awards
Best Bank: New Private sector
Best in Strength & Soundness
Mr. Aditya Puri: Best Banker
Skoch Financial Inclusion Awards 2013 Organization of the Year
AWARDS 2012
DSCI Information Technology Award 2012
Security in Bank (2nd time in a row)
Security Leader of the Year (Banking)
Businessworld Awards for Banking Excellence 2012
Most tech-friendly Bank
Deal of the year (Rupee Bonds)
HT-Mars Customer satisfaction survey
Winner: Bank and Credit Card customer
satisfaction Survey
CSO Forum Information Technology Award 2012 Best Organization for Information Security
Practice(2nd time in a row)
Economic Times
ET Awards for Corporate Excellence -
Company of the Year 2012
CNBC TV18's India Best Banks and Financial
Institutions Awards 2012
Best Private Sector Bank
Mint-Aon Hewitt study on India's Best Managed Boards
2012
One of India's six best managed Boards 2012
Forbes Asia Fab 50 Companies - Winning for the 6th year
IBA Banking Technology Awards 2011
Best Online Bank
Best Use of Business Intelligence
Best Customer Relationship Initiative
Best Risk Management & Security Initiative
Best Use of Mobility Technology in Banking
Dun & Bradstreet Banking Awards 2012
Overall Best Bank
Best Private Sector Bank
Asset Quality - Private Sector
Retail Banking -Private Sector
IDRBT Banking Technology Excellence Awards 2011-
12
Best Bank in 'IT for Operational Effectiveness'
category
Asia Money 2012 Best Domestic Bank in India
India's Top 500 Companies -Dun & Bradstreet Corporate
Awards
Best Bank in India
Finance Asia
Best Managed Company
Best CEO - Mr. Aditya Puri
UTI Mutual Fund CNBC TV 18 Financial Advisor
Awards 2011
Best Performing Bank - Private
Asian Banker International Excellence in Retail
Financial Services Awards 2012
Best Retail Bank in India
Best Bancassurance
Best Risk Management
5th Loyalty Summit award Customer and Brand Loyalty
Skoch Financial Inclusion Award for 2012
Skoch Foundation Award for the SHG/JLG
Linkage Programme
ICAI Awards 2011 Excellence in Financial Reporting
Controversies
Money laundering allegations
On 14 March 2013 an online magazine named Cobrapost.com released video footage
from Operation Red Spider showing high-ranking officials and some employees of HDFC bank
and two other leading banks, willing to turn black money into white, a violation of Money
Laundering Control Act. Following the release of the footage, the Government of
India and RBI have ordered an inquiry. The banks under question also conducted investigations
of their own. HDFC appointed Deloitte Touche Tohmatsu to conduct a forensic inquiry. The
bank also appointed Amarchand & Mangaldas & Suresh A Shroff & Co (AMSS), a law firm
based in India, to investigate in association with the internal departmental inquiry, the breaches
in the banks code of conduct and ethical standards by the officials involved. On March 16,
2013, HDFC released a statement announcing the suspension of over 20 employees involved in
the videotape to ensure fair and unbiased investigation process.
The RBI forensic investigation did not reveal any prima facie evidence for the allegations of
money laundering. Deputy Governor at RBI, K.C. Chakrabarty, said in an interview that no
transactions had taken place. The Executive Director of HDFC, Paresh Sukthankar, also
confirmed that their investigations revealed the same on April 24, 2013, The issue is being
reviewed and investigated from multiple quarters. Clearly, all the investigations have shown that
there have been no instances of transactions actually taking place. Our belief is that the existing
processes seem to have worked in not allowing these transactions to happen.
However, RBI investigations revealed violations of KYC (Know Your Customer) norms, for
which the three banks were imposed penalty, with Rs. 4.5 crores imposed on HDFC.
HDFC Personal Banking
History:
The Housing Development Finance Corporation Limited (HDFC) was amongst the first to
receive an "in principle" approval from the Reserve Bank of India (RBI) to set up a bank in the
private sector, as part of RBI"s liberalisation of the Indian Banking Industry in 1994. The bank
was incorporated in August 1994 in the name of "HDFC Bank Limited", with its registered
office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank
in January 1995.
Promoter:
HDFC is India's premier housing finance company and enjoys an impeccable track record in
India as well as in international markets. Since its inception in 1977, the Corporation has
maintained a consistent and healthy growth in its operations to remain the market leader in
mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has
developed significant expertise in retail mortgage loans to different market segments and also
has a large corporate client base for its housing related credit facilities. With its experience in the
financial markets, strong market reputation, large shareholder base and unique consumer
franchise, HDFC was ideally positioned to promote a bank in the Indian environment.
Business Focus:
HDFC Bank's mission is to be a World Class Indian Bank. The objective is to build sound
customer franchises across distinct businesses so as to be the preferred provider of banking
services for target retail and wholesale customer segments, and to achieve healthy growth in
profitability, consistent with the banks risk appetite. The bank is committed to maintain the
highest level of ethical standards, professional integrity, corporate governance and regulatory
compliance. HDFC Banks business philosophy is based on five core values: Operational
Excellence, Customer Focus, Product Leadership, People and Sustainability.
Capital Structure:
As on 30th June, 2013 the authorized share capital of the Bank is Rs. 550 crore. The paid-up
capital as on the said date is Rs. 477, 74, 66, 370/- (2388733185 equity shares of Rs. 2/- each).
The HDFC Group holds 22.74% of the Bank's equity and about 17.02% of the equity is held by
the ADS / GDR Depositories (in respect of the bank's American Depository Shares (ADS) and
Global Depository Receipts (GDR) Issues). 34.49% of the equity is held by Foreign Institutional
Investors (FIIs) and the Bank has 4, 33,144 shareholders.

The shares are listed on the Bombay Stock Exchange Limited and the National Stock Exchange
of India Limited. The Bank's American Depository Shares (ADS) are listed on the New York
Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's Global Depository Receipts
(GDRs) are listed on Luxembourg Stock Exchange under ISIN No US40415F2002.
Management:
Mr. C.M. Vasudev has been appointed as the Chairman of the Bank with effect from 6th July
2010. Mr. Vasudev has been a Director of the Bank since October 2006. A retired IAS officer,
Mr. Vasudev has had an illustrious career in the civil services and has held several key positions
in India and overseas, including Finance Secretary, Government of India, Executive Director,
World Bank and Government nominee on the Boards of many companies in the financial sector.

The Managing Director, Mr. Aditya Puri, has been a professional banker for over 25 years, and
before joining HDFC Bank in 1994 was heading Citibank's operations in Malaysia.

The Bank's Board of Directors is composed of eminent individuals with a wealth of experience
in public policy, administration, industry and commercial banking. Senior executives
representing HDFC are also on the Board.

Technology:
HDFC Bank operates in a highly automated environment in terms of information technology and
communication systems. All the bank's branches have online connectivity, which enables the
bank to offer speedy funds transfer facilities to its customers. Multi-branch access is also
provided to retail customers through the branch network and Automated Teller Machines
(ATMs).

The Bank has made substantial efforts and investments in acquiring the best technology available
internationally, to build the infrastructure for a world-class bank. In terms of core banking
software, the Corporate Banking business and the Retail Banking business are supported by
Flexcube, from Oracle Financial Services Software Limited. The systems are open, scalable and
web-enabled.


Businesses:
HDFC Bank caters to a wide range of banking services covering commercial and investment
banking on the wholesale side and transactional / branch banking on the retail side. The bank has
three key business segments:

Wholesale Banking
The Bank's target market is primarily large, blue-chip manufacturing companies in the Indian
corporate sector and to a lesser extent, small & mid-sized corporates and agri-based
businesses. For these customers, the Bank provides a wide range of commercial and
transactional banking services, including working capital finance, trade services,
transactional services, cash management, etc. The bank is also a leading provider of
structured solutions, which combine cash management services with vendor and distributor
finance for facilitating superior supply chain management for its corporate customers. Based
on its superior product delivery / service levels and strong customer orientation, the Bank has
made significant inroads into the banking consortia of a number of leading Indian corporates
including multinationals, companies from the domestic business houses and prime public
sector companies. It is recognised as a leading provider of cash management and
transactional banking solutions to corporate customers, mutual funds, stock exchange
members and banks.

Retail Banking
The objective of the Retail Bank is to provide its target market customers a full range of
financial products and banking services, giving the customer a one-stop window for all
his/her banking requirements. The products are backed by world-class service and delivered
to customers through the growing branch network, as well as through alternative delivery
channels like ATMs, Phone Banking, NetBanking and Mobile Banking.

The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and
the Investment Advisory Services programs have been designed keeping in mind needs of
customers who seek distinct financial solutions, information and advice on various
investment avenues. The Bank also has a wide array of retail loan products including Auto
Loans, Loans against marketable securities, Personal Loans and Loans for Two-wheelers. It
is also a leading provider of Depository Participant (DP) services for retail customers,
providing customers the facility to hold their investments in electronic form.

Treasury
Within this business, the bank has three main product areas - Foreign Exchange and
Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the
liberalization of the financial markets in India, corporate need more sophisticated risk
management information, advice and product structures. These and fine pricing on various
treasury products are provided through the banks Treasury team. To comply with statutory
reserve requirements, the bank is required to hold 25% of its deposits in government
securities. The Treasury business is responsible for managing the returns and market risk on
this investment portfolio.
Credit Ratings
HDFC Bank has its deposit programmes rated by two rating agencies - Credit Analysis &
Research Limited. (CARE) and Fitch Ratings India Private Limited. The bank's Fixed Deposit
programme has been rated 'CARE AAA (FD)' [Triple A] by CARE, which represents
instruments considered to be "of the best quality, carrying negligible investment risk".

HDFC Bank also has its long term unsecured, subordinated (Tier II) Bonds of Rs.4 billion rated
by CARE and Fitch Ratings India Private Limited. CARE has assigned the rating of "CARE
AAA" for the Tier II Bonds while Fitch Ratings India Pvt. Ltd. has assigned the rating "AAA (
ind )" with the outlook on the rating as "stable". In each of the cases referred to above, the ratings
awarded were the highest assigned by the rating agency for those instruments?




Career
Join the winning team
HDFC Bank is a young and dynamic bank, with a youthful and enthusiastic team determined to
accomplish the vision of becoming aworld-class Indian bank.
Our business philosophy is based on four core values - Customer Focus, Operational
Excellence, Product Leadership and People. We believe that the ultimate identity and success
of our bank will reside in the exceptional quality of our people and their extraordinary efforts.
For this reason, we are committed to hiring, developing, motivating and retaining the best people
in the industry.

Mission and Business Strategy


Our mission is to be "a World Class Indian Bank", benchmarking ourselves against international
standards and best practices in terms of product offerings, technology, service levels, risk
management and audit & compliance. The objective is to build sound customer franchises across
distinct businesses so as to be a preferred provider of banking services for target retail and
wholesale customer segments, and to achieve a healthy growth in profitability, consistent with
the Bank's risk appetite. We are committed to do this while ensuring the highest levels of ethical
standards, professional integrity, corporate governance and regulatory compliance.
Our business strategy emphasizes the following :

Increase our market share in Indias expanding banking and financial services industry by
following a disciplined growth strategy focusing on quality and not on quantity and delivering
high quality customer service.

Leverage our technology platform and open scaleable systems to deliver more products to
more customers and to control operating costs.

Maintain our current high standards for asset quality through disciplined credit risk
management.

Develop innovative products and services that attract our targeted customers and address
inefficiencies in the Indian financial sector.

Continue to develop products and services that reduce our cost of funds.

Focus on high earnings growth with low volatility.
Features and Benefits of Safe Deposit Locker
Nomination on safe-deposit lockers enables HDFC Bank to release the contents to the nominee
of the person hiring in the event of their death. If a locker is held jointly, and one of the people
hiring dies, the contents can only be removed jointly by the nominee(s) and the survivors
The nomination facility is available to anyone hiring a locker.
For those hiring on an individual basis; nomination can be made in favour of one individual
For those hiring jointly: nomination can be made in favour of two individuals
Unpaid locker rentals are recovered from the nominee
If a locker is hired for a minor, the nomination will be made by someone lawfully entitled to act
on behalf of the minor
Safe Deposit Locker Interest Rates & Charges
Enclosed below are HDFC Bank Safe Deposit Lockers Interest Rates & Charges
Locker rates vary based on location of branch and locker sizes. Rates are available at branches.
Locker rent is charged annually and rent is payable in advance.

Corporate Governance
HDFC Bank recognizes the importance of good corporate governance, which is generally
accepted as a key factor in attaining fairness for all stakeholders and achieving organizational
efficiency. This Corporate Governance Policy, therefore, is established to provide a direction and
framework for managing and monitoring the bank in accordance with the principles of good
corporate governance.

Types of Deposit Accounts
While various deposit products offered by the bank are assigned different names, the deposit
products can be categorised broadly into the following types. Definition of major deposit
schemes are as under : -

"Demand Deposits " means a deposit received by the bank which is withdrawable on
demand;

"Savings Deposits" means a form of Demand Deposit which is subject to restrictions as to
the number of withdrawals as also the amounts of withdrawals permitted by the bank during
any specified period;

"Term Deposit" means a deposit received by the bank for a fixed period withdrawable only
after the expiry of the fixed period and includes deposits such as Recurring / Double Benefit
Deposits / Short Deposits / Fixed Deposits / Monthly Income Certificate / Quarterly Income
Certificate etc.

''Notice Deposit'' means Term Deposit for a specific period but withdrawable on giving at
least one complete banking day's notice;

"Current Account" means a form of Demand Deposit wherefrom withdrawals are allowed
any number of times depending upon the balance in the account or up to a particular agreed
amount and will also include other deposit accounts which are neither Savings Deposit nor
Term Deposit;
Debit Cards
The bank will accept ATM card / Debit card hot listing instructions from customers through
Phone banking channel - 24 hours a day and from branch channel during customer hours. Phone
banking numbers are made available to customers whenever a Card is issued and all branches
contain a detailed leaflet with the numbers.
Nomination Facility
Nomination Facility: Bank offers nomination facility in deposit accounts, safe deposit lockers,
articles in safe custody etc. Nomination facility is available on all deposit accounts opened by the
individuals. Nomination is also available to a sole proprietary concern account. Nomination can
be made in favor of one individual only. Nomination so made can be cancelled or changed by the
account holder/s any time. While making nomination, cancellation or change thereof, it is
required to be witnessed by a third party. Nomination can be modified by the consent of account
holder/s. Nomination can be made in favor of a minor also subject to other major individual
being named appointee(s) during the minority period.


Account Opening and Operating
Before opening any Deposit Account, the bank will carry out due diligence as required under "Know Your
Customer" (KYC) guidelines issued by RBI and or such other norms or procedures adopted by the bank. If the
decision to open an account of a prospective depositor requires clearance at a higher level, reasons for any delay in
opening of the account will be informed to him and the final decision of the bank will be conveyed at the earliest to
him.
The account opening forms and other material would be provided to the prospective depositor by the bank. The
same will contain details of information to be furnished and documents to be submitted for verification and / or for
record. It is expected of the bank official to explain the procedural formalities and provide necessary clarifications
sought by the prospective depositor when he approaches the bank for opening a Deposit Account.
For deposit products like Savings Bank Account and Current Deposit Account, the bank will normally stipulate
certain minimum/average balances to be maintained as a part of the terms and conditions governing operation of
such accounts. Failure to maintain stipulated minimum/ average balance in the account will attract levy of charges
as specified by the bank. For Savings Bank Account, the bank may also restrict the number of transactions, cash
withdrawals, etc., for a given period. Similarly, the bank may specify charges for issue of cheque books, additional
statement of accounts, duplicate pass book, folio charges, etc. All such details, regarding terms and conditions for
operation of the accounts and schedule of charges for various services provided will be communicated to the
prospective depositor while opening the account.
Savings Bank Accounts can be opened for eligible person / persons and certain organizations / agencies (as advised
by Reserve Bank of India (RBI) from time to time).These accounts are designed to help the individual (personal
customers) to inculcate the habit of saving money and to meet their future requirement of money. The amounts can
be deposited / withdrawn from these accounts by way of cheques/ATM. It helps customers to keep minimum cash
at home besides earning interest.

Current Accounts can be opened by Individuals / Partnership firms / Private and Public Limited Companies / HUFs
/ Specified Associates / Societies / Trusts, etc.

Term Deposit Accounts can be opened by Individuals / Partnership firms / Private and Public Limited Companies /
HUFs/ Specified Associates / Societies / Trusts, etc. Bank has tailored various deposit schemes to suit the needs
and expectations of investing people in every walk of life.
Operation of Joint Account: The Joint Account opened by more than one individual can be operated by single
individual or by more than one individual jointly. The mandate for operating the account can be modified with the
consent of all account holders. The Savings Bank Account opened by minor jointly with natural guardian / guardian
can be operated by natural guardian only.
The joint account holders can give any of the following mandates for the disposal of balance in the above accounts
:
In case of joint Fixed Deposits with a survivorship clause, the Bank shall be discharged by paying the Fixed
Deposit proceeds prematurely to survivor/s on request, in the event of death of one or more Joint depositor


Interest Payments
Interest shall be paid on saving account at the rate specified by Reserve Bank of India directive
from time to time on daily product basis. Interest Rate revised from 3.50% p.a to 4.00% p.a
w.e.f. May 3, 2011

In terms of Reserve Bank of India Directives, interest shall be calculated at quarterly intervals on
Term Deposits and paid at the rate decided by the bank depending upon the period of deposits. In
case of Monthly Deposit Scheme, the interest shall be calculated for the quarter and paid
monthly at discounted value. The interest on Term Deposits is calculated by the bank in
accordance with the formulae and conventions advised by Indian Banks' Association.

The Bank computes interest based on the actual number of days in a year. In case, the Deposit is
spread over a leap and a non-leap year, the interest is calculated based on the number of days
i.e.,366 days in a leap year & 365 days in a non leap year.

The bank has statutory obligation to deduct tax at source if the total interest paid / payable on all
Term Deposits held by a person exceeds the amount specified under the Income Tax Act. The
bank will issue a tax deduction certificate (TDS Certificate) for the amount of tax deducted. The
depositor, if entitled to exemption from TDS can submit declaration in the prescribed format at
the beginning of every financial year.
Minor A/c
The minor can open a savings bank account and the same can be operated by the natural
guardian or by the minor himself / herself, if he/she is above the age of 12 years. The account
can also be opened jointly.

On attaining majority, the erstwhile minor should confirm the balance in his/her account and if
the account is operated by the natural guardian / guardian, fresh kyc documents and specimen
signature of erstwhile minor duly verified by the natural guardian would be obtained and kept on
record for all operational purposes.
To convert the account the following will be required:
AML section on the SB Regular AOF should be updated for the minor turned major
Customers will also fill up the Kids Advantage account conversion form
Address proof
Photograph
Proof of becoming major like Birth certificate, Passport etc.
Addition or Deletion of the name of Joint A/c
The bank may at the request of all the Joint Account holders allow addition or deletion of name/s
of Joint Account holder/s if the circumstances so warrant or allow an individual depositor to add
the name of another person as a Joint Account holder.
Premature Withdrawal of Term Deposits
The Bank on request from the depositor, will allow withdrawal of term deposit before
completion of the period of the deposit as per terms agreed upon at the time of placing the
deposit. Partial withdrawal is not allowed for term deposits booked under preferential rates.

The Interest rate applicable for premature closure will be lower of:
The base rate for the original /contracted tenure for which the deposit has been booked OR
The base rate applicable for the tenure for which the deposit has been in force with the Bank.
The base rate is the rate applicable to deposits of less than Rs.1 Cr as on the date of booking the
deposit.
For deposits > 5 Crs, the base rate is the rate applicable for 5 Cr deposits as on the date of
booking the deposit.
For such premature withdrawals, including sweep-ins and partial withdrawals, the Bank will levy
a penalty of 1%, on the applicable rate. However, penalty for premature withdrawal will not be
applicable for FDs booked for a tenor of 7-14 days.

Renewal of Term Deposits
When a term deposit is renewed on maturity, on renewed deposit interest rate for the period
specified by the depositor as applicable on the date of maturity would be applied. In the absence
of any maturity instructions or renewal instructions, all term deposits are automatically renewed
for a period equal to that of the original deposit at the rates prevailing at the time of renewal.
Advance against Deposits
The bank may consider requests of the depositor/s for loan / overdraft facility against Term
Deposits duly discharged by the depositor/s on execution of necessary security documents. The
bank may also consider Loan Against Deposit standing in the name of minor. However, a
suitable declaration stating that loan is for the benefit of the minor, is to be furnished by the
depositor / applicant.
Deceased Deposit Account
Settlement of Dues in Deceased Deposit Account

If the depositor has registered nomination with the bank, the balance outstanding in the
account of the deceased depositor will be transferred to the account of / paid to the nominee
after the bank is satisfied about the identity of the nominee, etc.

The above procedure will be followed even in respect of a joint Account where nomination is
registered with the bank.

In a Joint Deposit Account, when one of the Joint Account Holders passes away, the bank is
required to make payment jointly to the legal heirs of the deceased person and the surviving
depositor(s). However, if the Joint Account holders had given mandate for disposal of the
balance in the account in the forms such as "either or survivor, former / latter or survivor,
anyone of survivors or survivor, etc.," the payment will be made as per the mandate to avoid
delays in production of legal papers by the heirs of the deceased.

In the absence of nomination and when there are no disputes among the claimants, the bank
will pay the amount outstanding in the account of the deceased person against joint
application and indemnity by all legal heirs or the person mandated by the legal heirs to
receive the payment on their behalf without insisting on legal documents up to the limit
approved by the Bank's board. This is to ensure that the common depositors are not put to
hardship on account of delays in completing legal formalities.

Interest Payable on Term Deposit in Deceased Account

In the event of death of the depositor before the date of maturity of deposit and amount of the
deposit is claimed after the date of maturity, the bank shall pay interest at the contracted rate
till the date of maturity. From the date of maturity to the date of payment, the bank shall pay
simple interest at the applicable rate obtaining on the date of maturity, for the period for
which the deposit remained with the bank beyond the date of maturity; as per the Bank's
policy in this regard.

However, in the case of death of the depositor after the date of maturity of the deposit, the
bank shall pay interest at Savings Deposit rate (as on the date of maturity) from the date of
maturity till the date of payment.
Insurance Cover for Deposits
All Bank deposits are covered under the insurance scheme offered by Deposit Insurance and
Credit Guarantee Corporation of India (DICGC) subject to certain limits and conditions. The
details of the insurance cover in force, will be made available to the depositor.
Stop Payment Facility
The bank will accept Stop Payment Instruction from the depositors in respect of cheques issued
by them. Charges, as specified, will be recovered.
Dormant Accounts
Savings and Current account not operated for a continuous period of more than 2 years by
customer (excludes system generated transactions like credit interest/debit interest) will be
treated as a Dormant Account in the interest of the depositor as well as the Bank. The depositor
can request the bank to activate the account for operating it.
Pension Accounts
The bank offers a special product for pensioners with certain benefits. Details about the product
offering are available with all the branches.
Bank Deposit Account
The Bank offers a Basic Savings Bank Deposit Account with all the basic banking facilities with
Zero Initial Pay-In and Zero balance account. Details about the product offering are available
with all the branches.
Foreign Exchange Services
The Bank offers a wide range of Foreign Exchange Products and Services to all customers,
through its select branches. All Foreign Exchange transactions are conducted subject to Rules
and Regulations under the Foreign Exchange Management Act, 1999 (FEMA).
Dividend Policy
Your Bank has had a dividend policy that balances the dual objectives of appropriately
rewarding shareholders through dividends and retaining capital in order to maintain a healthy
capital adequacy ratio to support future growth. It has had a consistent track record of moderate
but steady increases in dividend declarations over its history with the dividend payout ratio
ranging between 20% and 25%. Consistent with this policy, and in recognition of the overall
performance during this financial year, your directors are pleased to recommend a dividend of
Rs. 5.50 per equity share of Rs.2 for the year ended March 31, 2013 as against Rs. 4.30 per
equity share of Rs.2 for the previous year ended March 31, 2012. This dividend shall be subject
to tax on dividend to be paid by the Bank.
Details of dividend declared by the Bank:


2012-2013 275%
2011-2012 215%
2010-2011 165%
2009-2010 120%
2008-2009 100%