A Project Report On



2ND Pg will be…. Admission order Xerox


I hereby certify that Mr. Nisar Hemal Gopal student of MBA (Finance) from M.K. University, Madurai has completed project work entitled as ‘A STUDY OF HDFC BANK ‘under my guidance.

As per my knowledge this is his original work bases on available data and for partial fulfillment of MBA program.



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

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

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

The bank of England was formed in 1694 to borrow money from the public for the government to finance the war of Augsburg against France. New technology transformed the banking industry in the 1900’s round the world. goldsmith were using bank of England notes of their own receipts. By 1709. banks merged into larger and fewer groups and expanded into other country. 7 .

Taking deposits generates funds for lending and money transfer services are necessary for the attention of deposits. Without the intermediary of the banks both their depositors and their borrowers would have to contact each other directly. But a substantially high rate of interest was charged which made borrowing of money out of the reach of the majority of the people so there arose a need for a financial intermediate. Banks fulfills the role of a financial intermediary. Those three are closely related to each other. Before few decades there existed some influential people who used to land money. This is what has lead to the very foundation of financial institution like banks. Banks play a pivotal role in enhancing each and every sector. Banking industry has always revolved around the traditional function of taking deposits.BANKING STRUCTURE IN INDIA: In today’s dynamic world banks are inevitable for the development of a country. money transfer and making advances. This can and does happen of course. This means that it acts as a vehicle for moving finance from those who have surplus money to (however temporarily) those who have deficit. The Bank have introduced progressively more sophisticated versions of these services and have diversified introduction in numerable areas of activity not directly relating to this traditional trinity 8 . The Bank have developed their roles to such an extent that a direct contact between the depositors and borrowers in now known as disintermediation. They have helped bring a draw of development on the world’s horizon and developing country like India is no exception. which is the profitable activity of the three. the objective being to lend money. In everyday branch terms the banks channel funds from depositors whose accounts are in credit to borrowers who are in debit.

State Bank of India and its Subsidiaries Other Nationalized Banks Regional Rural Banks 9 .INDIAN BANKING SYSTEM Reserve Bank of India Schedule Banks Non-Schedule Banks State co-op Banks Commercial Banks Central co-op Banks and Primary Cr. Societies Commercial Banks Indian Foreign Public Sector Banks Private Sector Banks HDFC. ICICI etc.

All most all the sector operating in the economy was affected and banking sector is no exception to this. Thus the whole of the banking system in the country has undergone a radical change. Slowly the unions grew in strength. the changes have been swift. Political compulsion’s brought about nationalization of bank in 1969 and lobbying by bank employees and their unions added to the list of nationalized banks a few years later. while bank management stagnated. Economy.INDIAN BANKING INDUSTRY ANALYSIS: The banking scenario in India has been changing at fast pace from being just the borrowers and lenders traditionally. 10 . In the meantime. the focus has shifted to more differentiated and customized product/service provider from regulation to liberalization in the year 1991. from planned economy to market. Let us see how banking has evolved in the past 57 years of independence. The casualty was to the customer service declined. technology was becoming a global phenomenon lacking a vision of the future and the banks erred badly in opposing the technology up gradation of banks. complaints increased and bank management was unable to item the rot. They mistakenly believed the technology would lead to retrenchment and eventually the marginalization of unions. After independence in 1947 and proclamation in 1950 the country set about drawing its road map for the future public ownership of banks was seen inevitable and SBI was created in 1955 to spearhead the expansion of banking into rural India and speed up the process of magnetization. from licensing to integration with Global Economics.

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



The Housing Development Finance Corporation Limited (HDFC) was amongst first


to receive an ‘in principle' approval from the Reserve Bank of India (RBI) to incorporated in August 1994 in the name

set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. The bank was of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. 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, a strong market reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment. HDFC Bank began operations in 1995 with a simple mission: to be a “World Class Indian Bank.” We realized that only a single minded focus on product quality and service excellence would help us get there. Today, we are proud to say that we are well on our way towards that goal.

HDFC Bank Limited (the Bank) is an India-based banking company engaged in providing a range of banking and financial services, including commercial banking and treasury operations. The Bank has a network of 1412 branches and 3295 automated teller machines (ATMs) in 528 cities and total employees are 52687.


1412 1725



ATMs (Nos.)
4232 3295



Company Background Industry Business Group Incorporation Date Public Issue Date Face Value Company/Business Registration No Key Officials CEO Finance - Banks - Private Sector. HDFC Group 31/12/1994 31/12/1995 10.0000 INE040A01018 Aditya Puri


MR. our Founder and ChairmanEmeritus. 994. who left this earthly abode on November 18. gave birth to the Housing Development Finance Corporation . long before that. Hasmukhbhai started his second dynamic life. Born in a traditional banking family in Surat. At the ripe age of 60. 15 . but. His wisdom and warmth drew people from all walks of life to him. Gujarat. guidance and inspiration. for advice.HASMUKHBHAI PAREKH If ever there was a man with a mission it was Hasmukhbhai Parekh. He rose to become Chairman and continued so till his retirement in 1972. In 1956 he began his lifelong financial affair with the economic world. Mr. His building up HDFC without any government assistance. He was always concerned with building bridges.it was a trend-setter for housing finance in the whole Asian continent. Mr. as General Manager of the newly-formed Industrial Credit and Investment Corporation of India (ICICI). The firm closed down in the late seventies. he went on to become a towering figure on the Indian financial scene.a leading stock broking firm. Parekh nevertheless held strong and definite views with a quiet conviction. Parekh started his financial career at Harkisandass Lukhmidass . improving and encouraging communication between people. is itself a brilliant chapter in financial history. A soft spoken man of few words. even more illustrious than his first. His vision for mortgage finance for housing. He was a true development banker.

The only and best tribute we can pay to such an individual is to try and follow in his footsteps. There are over 200 published articles by him. In 1992. his vision. brought about not only an institution. The London School of Economics & Political Science conferred on him an Honorary Fellowship. and deregulation of lending rates were issues he stood for all his life. In 1953 he brought out a volume called: The Bombay Money Market. came into reality in the last years. He took active interest in the Bombay Community Public Trust. Deepak Parekh took over as Chairman from Hasmukhbhai. MR. and this happened before he passed away. He was one of the Founder Members of the Centre for Advancement of Philanthropy. but much more so.He was also a writer in his own right. Parekh the financial wizard. the man.T. opening up the financial sector. Hirane Vadhu Patro occupy pride of place in Gujarati literature. N. DEEPAK PAREKH 16 . Hasmukhbhai devoted all his life to raising resources for philanthropic causes. But there was much more to the man than his financial genius. Vaghul: "The most gratifying aspect about his life is that values he cherished all his life. Says ICICI Chairman. His works in Gujarati .T. keeping in mind his high ideals and philanthropic outlook." Farewell dear Hasmukhbhai! All of us will miss not only H. the Government of India honoured him with the Padma Bhushan Award. In his own unassuming way. When Mr. It detailed the intricate working of the Indian money market. Parekh is a formidable task. he said: "Taking over from H." In his last years. developments in the financial sector brought him some measure of satisfaction. and its Chairman till 1993. but an entire concept which has proved itself to be of lasting importance. designed specifically to serve the needs of the city's underprivileged citizens. full of incisive comments on finance and economics.Hirane Patro.

He was the first recipient of the Qimpro Platinum 17 . A chartered accountant. He is also a non-executive. He is also the Non-Executive Chairman of Glaxo India Ltd & Burroughs Wellcome (India) Ltd and on the Board of Castrol BP India. Hindustan Lever. Deepak Parekh is also the Non-Executive Chairman of Infrastructure Development Finance Company Ltd (IDFC). formed to recommend measures for strengthening the Unit Scheme – 1964. which was tasked to compare the level of adherence to international standards in India with that in other countries. a Government of India enterprise for infrastructure projects in 1997. A pioneer in mortgage finance. Deepak Parekh has won several awards including Businessman of the Year 1996 by Business India and the JRD Tata Corporate Leadership Award by All India Management Association (AIMA). Deepak Parekh joined HDFC in 1978. He was appointed Chairman of the high level expert committee. Deepak Parekh has been a member of various Committees set up by the Government of India. independent Director of SingTel. he has enabled scores of Indian middle class people owning their houses or apartments through affordable loans. Mahindra & Mahindra and Indian Hotels Company. the country’s leading housing finance company.Deepak Parekh is the Chairman of HDFC. After returning to India. He is instrumental in making the HDFC a premier housing finance institution in the country. Siemens Ltd. The Reserve Bank of India appointed him Chairman of the Advisory Group for Securities Market Regulation. Deepak Parekh began his career with Ernst & Ernst Management Consultancy Services in New York. he worked with Grindlays Bank and also Chase Manhattan Bank as its assistant representative for South Asia. He was also Chairman of the Expert Committee constituted by the Ministry of Power to look into the reform efforts in the power sector. He was promoted as its Managing Director in 1985 and appointed its Chairman in 1993.

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

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

Paresh Sukthankar Mr.Banking Services YEAR 2010 YEAR-2009 EUROMONEY AWARDS 2009 Economic Times Brand Equity & 20 'BEST BANK IN INDIA' Most Trusted Brand . Aditya Puri Mr. Keki M. IV. Ashim Samanta Mr. Pandit Palande DESIGNATIO N Chairman Managing Director Executive Director Executive Director Director Director Director Director Director Director Director Awards and Achievements .Runner Up . BOARD OF DIRECTORS PERSON Mr. Jagdish Capoor Mr. Gautam Divan Dr. Renu Karnad Mr. Harish Engineer Mr. Maintaining current high standards for asset quality through disciplined credit risk management Develop innovative products and services that attract targeted customers and address inefficiencies in the Indian financial sector.III. C M Vasudev Mr. Arvind Pande Mrs. Mistry Mr.

Nielsen Research annual survey 2009 Asia Money 2009 Awards IBA Banking Technology Awards 2009 Global Finance Award IDRBT Banking Technology Excellence Award 2008 Asian Banker Excellence in Retail Financial Services 'Asian Banker Best Retail Bank in India Award 2009 ' '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' 21 .



information and 24 . companies from the domestic business houses and prime public sector companies. cash management. The HDFC Bank Preferred program for high net worth individuals. For these customers. Based on its superior product delivery / service levels and strong customer orientation. which combine cash management services with vendor and distributor finance for facilitating superior supply chain management for its corporate customers. stock exchange members and banks. The products are backed by world-class service and delivered to the customers through the growing branch network. blue-chip manufacturing companies in the Indian corporate to small & mid-sized corporate and agri-based businesses. as well as through alternative delivery channels like ATMs. transactional services. The bank has three key business segments: WHOLESALE BANKING SERVICES: The Bank's target market ranges from large. RETAIL BANKING SERVICES: The objective of the Retail Bank is to provide its target market customers a full range of financial products and banking services. Phone Banking. trade services. the HDFC Bank Plus and the Investment Advisory Services programs have been designed keeping in mind needs of customers who seek distinct financial solutions. including working capital finance. Net Banking and Mobile Banking. the Bank provides a wide range of commercial and transactional banking services. mutual funds. The bank is also a leading provider of structured solutions. giving the customer a one-stop window for all his/her banking requirements. the Bank has made significant inroads into the banking consortia of a number of leading Indian corporate including multinationals. It is recognized as a leading provider of cash management and transactional banking solutions to corporate customers. etc.HDFC Bank offers a wide range of commercial and transactional banking services and treasury products to wholesale and retail customers.

HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (VISA Electron) and issues the Master card Maestro debit card as well. Personal Loans and Loans for Two-wheelers.000 Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant establishments. To comply with statutory reserve requirements.Foreign Exchange and Derivatives. Local Currency Money Market & Debt Securities. the bank has three main product areas .advice on various investment avenues. The Treasury business is responsible for managing the returns and market risk on this investment portfolio. corporate need more sophisticated risk management information. and Equities. the bank had a total card base (debit and credit cards) of 5. Loans against marketable securities. advice and product structures. By September 30. The Bank also has a wide array of retail loan products including Auto Loans. These and fine pricing on various treasury products are provided through the bank's Treasury team. the bank is required to hold 25% of its deposits in government securities. It is also a leading provider of Depository Participant (DP) services for retail customers.2 million cards. With the liberalization of the financial markets in India. providing customers the facility to hold their investments in electronic form. The Bank is also one of the leading players in the "merchant acquiring" business with over 50. The Bank launched its credit card business in late 2001. 2005. TREASURY: Within this business. 25 .


Fix deposits. but also can recommend products that can augment your planning for the future. draw Demand Drafts and withdraw cash. we have a range of solutions that are second to none. Savings Accounts These accounts are primarily meant to inculcate a sense of saving for the future. Phone Banking and Mobile Banking.Banking should be effortless. the efforts are rewarding. There some saving accounts like: - Regular Saving Account: An easy-to-operate savings account that allows you to issue cheques. If you need money urgently then you can take money from the ATM machine. HDFC Bank not only has the perfect solution for you. Demat account. No matter what a customer's need and occupational status. There are 1977 ATM centers across the country. Check up on your balances from the comfort of your home or office through Net Banking. Current accounts. Saving plus Account Introducing the best banking option for you with HDFC Bank Savings plus Account. Safe deposits lockers. With HDFC Bank. Now you can get access to some of the finest banking facilities with HDFC Bank's 27 . It includes these services: • • • • • Saving accounts. Whether you're employed in a company and need a simple Savings account or run your own business and require a robust banking partner. bank have confident that person will find the perfect banking solution. Whatever person’s occupation. accumulating funds over a period of time.

All you have to do is maintain an Average Quarterly Balance of Rs. 25. bank has introduced the 'No Frills' Savings Account. which offers customer all the basic banking facilities. Presenting Savings Max account. Customer can even avail of services like Net Banking. Saving Max Account Welcome to a world of convenience.you get a host of premium services from HDFC Bank absolutely free.000/-. No frills Account In an effort to make banking simpler and more accessible for customers. 10. Customer’s funds continue to earn you interest while he enjoys 28 .Savings plus Account. which is why. Mobile banking free of cost. Senior Citizen Account HDFC Bank appreciates your needs and endeavors. which like a dutiful child will help you fulfill your needs in the best manner possible. By maintaining an average quarterly balance of just Rs. In this customer can put Zero Initial Pay-in and a Zero Balance account Institutional saving accounts A specially designed account that offers twin benefits of a savings as well as a current account. they present an account especially dedicated to customer.000/. loaded with maximum benefits to make your banking experience a pleasure.

The accumulated savings in the Kids Advantage Account can over the years help in meeting customer child's needs. Premium salary account. Salary Accounts In this account customer can get salary from where he/she doing such job and organization or company at where the customer of the bank in doing job deposit their salary in to the salary account a person can get salary. There are various kinds of saving accounts in the HDFC Bank like: • • • • • • • Pay roll account. All this and more in a Zero Balance account. Open a Savings Account and transfer money every month into customer’s Kids Advantage Account and watch the savings grow as customer’s child grows. No frills salary account.hassle-free banking & a host of other features. Main features and benefits of this account are as follow:For their Growing Needs 29 . Kid’s advantage account Start saving for your child today and secure his/her future a sentence tells by the Hdfc bank. Reimbursement salary account. Regular salary account. Defense salary account. Classic salary account.

The amount your child is able to withdraw is Rs. free account to account funds transfer between HDFC Bank accounts to Free inter-city clearing of up to 100 lakhs per month.500/. • Once the balance in the Kid's Advantage Account reaches/exceeds Rs. From special cheques that get treated at par with local ones in any city where branch. • ATM/International Debit Card will be issued for children between 7-18 years of age in the child's name with your permission.• Free Education Insurance cover of Rs.000/.will automatically be transferred into a Fixed Deposit for 1 year 1 day.000/. the amount in excess of Rs. 30 .at ATMs or spend Rs. Monitor the transactions of your child's account with the free quarterly physical statement of account or free monthly Email Statement of account Free Net Banking for you to monitor your child's account. • You can also opt for systematic investments in mutual funds from the Kid's Advantage Account in your child's name. rail or air to safeguard the future of your child. For their Secured Future • Standing Instruction to transfer any amount from your account to your Kid's Advantage Account every month (Minimum value = Rs.500/.& Minimum tenure = 1 year) (Mandatory). by signing in for our sweep-out facility. 00. in your child's name. 35. 25. faster collection of outstation cheques (payable at branch locations). • • • • • Free cash withdrawals on any other Bank's ATM* 1 free Personalised cheque book for your child. 2.000/. 1. 1. bank’s priority services have become the benchmark for banking efficiency.in the event of death of the parent / guardian through vehicular accident by road. Current accounts HDFC Bank Current Account gives the power of inter-city banking with a single account and access to more than cities.at merchant locations. 2.000/-. Free SMS/Email alerts informing you about the account transactions.

40.000. you need to transfer funds across cities. and time is of the essence. Not only that. Premium current account 31 . HDFC Bank Trade Current Account gives power of intercity banking with a single account. From special cheques that get treated at par with local ones in any city where bank have a branch.000. experience the freedom of multi-city banking. Trade Current Account requires maintaining an average quarterly balance of Rs. to free inter-city clearing of up to 50 lacs per month. bank’s priority services have become the benchmark for banking efficiency. There are various kinds of current account in this bank like: - Plus current account HDFC Bank plus Current Account gives the power of inter-city banking with a single account and access to more than cities. Person can have the power of multi-location access to his account from any of our 761 branches in 327 cities. Plus Current Account requires maintaining an average quarterly balance of Rs. to free account to account funds transfer between HDFC Bank accounts. he can do most of his banking transactions from the comfort of his office or home without stepping out. 100.Now. Trade current account In today's changing business requirements. with an HDFC Bank Current Account.

With a vast network of branches in cities all over the country. It also facilitates FREE NEFT transactions & FREE RTGS collections for faster collections in account. and through direct access channels . customer can access account anytime.a hassle-free account that allows deposit the reimbursements receive from company/organization on a monthly basis. 10.000. To open this account a person has to follow these processes: Procure an Account Opening Document (AOD) from HDFC Bank. Regular current account A Current account is ideal for carrying out day-to-day business transactions. first request to company to open up a Salary Account for particular person). offers Payable-At-Par cheque book facility & FREE inter-city clearing transactions across our network up to Rs. pay using payable at par cheques or deposit cheque at any HDFC bank branch. no more receipts to keep track of .000. Internet and through the ATM. Regular Current Account requires to maintain an average quarterly balance of only Rs. A Current Account with the benefits of accessing account from a large network of branches. anywhere. mobile. With the HDFC Bank Regular Current Account.25 Lacs per month. customer can keep track of all transactions anytime. and access to a multitude of ATM's. 25. Form this account customer can avail benefits of inter-city banking account that requires an average quarterly balance of only Rs.Business needs a partner who can manage finances while concentrate on growing business. 32 . Reimbursement Current Account No more paperwork.the phone. (If person has just joined.

Request company to directly credit cash payments to the Reimbursement Account. With HDFC Bank Flexi Current Account Cash Deposit and Anywhere Transaction limits are a multiple of the balance you maintain in Current Account. What’s more. customer get the benefit of higher transaction limits due to the higher average balances maintained in account. 33 . during peak seasons. Great Britain Pound or Euro. So. Person can choose to set up your account either in US Dollar. open Resident Foreign Currency Domestic Account and manage foreign currency efficiently. RFC – Domestic Account Full name of this account is Resident foreign currency account. Salary Account as well as new Reimbursement Account. person need not worry about maintaining huge balances to enjoy high transaction limits. Have you accumulated foreign currency from traveling abroad frequently? Received gifts from relatives in foreign currency? Or earned it by any other means as approved by the Reserve Bank of India? If so. Open account with an initial amount as per the following-US Dollar = 250 Great Britain Pound = 200 Euro = 250 and maintain an Average Quarterly Balance of the same amount.Mention Salary Account number and Debit Card number on the AOD so that Debit card can be linked to both. To open this accounts a person as to follow this process: Choose the currency in which person wish to operate. Flexi current account Tired of static transaction limits during peak seasons? HDFC Bank Flexi Current Account is the answer to changing banking needs during peak seasons. during lean seasons.

which person anyway may not need. So. 10 lacs. free. On maintaining an average quarterly balance of Rs. With the Apex current account.000. 34 . Features like maximum free transaction limits including other beneficial features on this current account truly enhances business potential to the Maximum. Fix Deposits Long-term investments form the chunk of everybody's future plans. anywhere Banking experience at the APEX is reserved for person who joints this. Flexi Current Account requires to maintain a minimum Average Monthly Balance (AMB) of just Rs. Apex current account The top position is always the desirable position. Unlimited. this account makes sure person make the most of every business opportunities coming his way. People can invest his/her money into either in security market or gold or mutual fund or into a fix deposits. bank present to world of privileges that helps business expand and grow. fixed deposits allow to borrow from own funds for a limited period. take business to a new high. for this purpose he has a better chance to deposits money in to the fix deposit. People always go to that way where he/she can get more benefits and minimum risks. Max current account Maximum benefits and minimum hassles for customer with Max Current Account with a Rs. thus fulfilling needs as well as keeping savings secure. 5 lacs average quarterly balance requirement. 75. An alternative to simply applying for loans.

35 . Link Fixed Deposit to Savings or Current Account and use it to fall back on in case of emergencies.75% on HDFC Bank Fixed Deposit with an additional 0. now is the time to invest money in HDFC bank Fixed Deposit. and still take advantage of your Fixed Deposits? Then what you need is a Sweep-In Facility on savings account.If people believe in long-term investments and wish to earn higher interests on his/her savings. Get up to 9.000/. Supper saver facility Customer can enjoy a high rate of interest along with the liquidity of a Savings Account by opting for a Super Saver Facility on his or her savings account. customer will lose interest only for the actual amount that has been withdrawn. A deficit in Savings or Current Account is taken care of by using up an exact value from Fixed Deposit.00. Flexibility. Regular fix deposit As per the rules and regulation of the bank a person can deposit their money in to a fix deposit in the bank and can get the benefits of these facilities. Sweep-in facility Do you wish to avoid taking overdrafts. 1. Five year tax saving fix deposit In 2006. What's more NO PENALTY if withdraw part of the FD in times of need.50% for Senior Citizens.will be allowed exemption under Sec 80C of the Income Tax Act. Avail of an overdraft facility of up to 75% of the value of his or her Fixed Deposit. it was announced for the first time that Bank fixed deposits booked by an Individual/HUF for 5 years & up to Rs. Security and High Returns all bundled into one offering.1961 subject to necessary declarations taken from the Customer. Since deposits are broken down in units of Re 1/-.

Large and Extra Large with varying rents. So to avoid faulty processes demat account is really most important for the share market and for the safety of shares it is most important. over a period of time. firms. 36 . Lockers available in various sizes. Advantages of safe deposit locker in HDFC bank • • Wide Availability. without the hassle of handling physical documents that get mutilated or lost in transit. Eligibility An individual (not minor). HDFC Bank Demat services offers a secure and convenient way to keep track of securities and investments.e. limited company. clubs. Safe Deposit Lockers A Safe Deposit Locker with HDFC Bank is the solution to person’s fear. Small. etc may hire a locker. i. HDFC BANK is one of the leading Depository Participant (DP) in the country with over 8 Lac Demat accounts. Located at select branches in cities all over the country. societies. Medium. trusts. HDFC BANK is Depository participant both with -National Securities Depositories Limited (NSDL) and Central Depository Services Limited (CDSL). associations. bank’s lockers ensure the safe keeping of valuables.Demat Account Nowadays share market is becoming is the main occupation of the person.

LOAN In today’s competitive world every thing happens only with the help of money or through the money every person need money. In the case of a sole hirer of a safe deposit locker. Rent is payable in advance. nomination can be made in favor of only one individual. But some time a person has not cash 37 . Lockers can be allotted individually as well as jointly. Loss of Key is to be immediately informed to the concerned Branch. There is a nominal annual charge. Terms & Conditions • • • • For obtaining a Locker at HDFC Bank you must be an account holder with Bank.• • • Lockers are rented out for a minimum period of one year. which depends on the size of the locker and the centre in which the branch is located. Nomination for Safe Deposit Locker • • • • The Lockers and their contents can be nominated to people near and dear to you. Just open an account and get the locker facility. No deposits are required to avail a locker. Where the safe deposit locker is hired in the name of a minor. The Locker holder is permitted to add or delete names from the list of persons who can operate the Locker and can have access to it. the nomination shall be made by a person lawfully entitled to act on behalf of the minor. Nomination facility is available to individual hirer of Safe Deposit Locker.

so personal loan can be helpful in this entire requirement. a dedicated team of experts and a complete package to meet all housing finance needs. As person ordered in the hotel for tea or coffee and it is immediately came fast. time value is becoming more important so to reach at the destination of any business related occasion or for a boy to reach college or any where at the fix time there are so many requirement of vehicles. From this he/she can fulfill their needs or requirement. help people realize dream. here one solution for that person this is personal loan. With over 30 years of experience. HDFC Home Loans. As per the requirement of the every person there are much type of loans are there in the HDFC bank. So. It can be any thing either a dream of vacation or son/daughter’s admission to college or any wedding. same over here any person want to get a personal loan with the nominal documents he can get the loan. Home loan HDFC Bank brings HDFC home loans to doorstep. Lone dose not mean that only lower class person needs it but also upper class person it is needed.on hand at that time he needs lone either from any friend or from any financial institute. Vehicles loan Nowadays the life is being so fast. Personal loan A person has so many dreams but some time due to scarcity of money a dream can’t be satisfy. But 38 .

Gold loan With HDFC Bank's Gold Loan. The procedure is simple.every people have no capacity to purchase vehicles with cash so for that here in the HDFC bank vehicles loan is available. free international debit card. So. Express loan plus Bank offer Express Loans Plus at person Doorstep to help fulfill all his/her needs. School admission or also in the family holiday. A person can get 70% loan on the value of the gold jewellery and ornaments. It is helpful to person in repairing of house. Educational loan 39 . And commercial businessman can get the benefits of the commercial vehicles loans. New car loan. and free net banking phone banking services. Types of vehicles loan: • • • • • Two wheeler loans. documentation is minimal and approval is quick. There is also availability of the overdraft on the gold jewellery. There are many types of vehicles loan. The procedure is simple. Tractor loan (for agree culture business). Commercial vehicle loan. And also terms and condition are different as per the requirement. Thus as per the need of different people there are vehicle loans available. as per the requirement of the person there are these types of loans are available this are at the chip rate and hassel free from more documentation and other procedure. Used car loan. person can get an instant loan against gold jewellery and ornaments. documentation is minimal and approval is quick. With this a customer can get free additional services like free personalized cheque book.

Policies issued by LIC & Select Private Insurance Companies. Exclusive Telegraphic Transfer facility available for courses abroad.Nowadays important of education becoming very high. Debt. Loan available up to tenure of 7 years including moratorium period. Loans available for short duration/ job oriented courses also. to expand his business. Loan against property HDFC Bank brings Loan Against Property (LAP). Debt. UTI Bonds (ARS & US64 Bonds) and Gold Deposit Certificates. there is education loan is also available for the student. NSC. and fund his child's education and much more. dividends and bonuses Loan available to NRIs against Shares. A person can get loan up to 10 lacs to study in India and 20 lacs if he wants to study in abroad. Mutual Fund Units(Equity. Loans disbursed directly to the educational institution. So. while still retaining ownership. He can depend on bank to meet all his business requirements even to purchase a new shop or office for business. FMPs). Mutual Funds (equity. And the best part is that he can continue to enjoy all his shareholder benefits such as rights. and KVP. Loan to purchase Commercial Property (LCP) is a specially designed 40 . As it important becoming high it is becoming costly. NSC. US64 Bonds. It is released as per fee schedules of institutes. KVP. NABARD's Bhavishya Nirman Bonds. Person can now take a loan against residential or commercial property. Insurance Policies. Loan against security With HDFC Bank's Loan against Securities. Gold Exchange Traded Fund(ETF). person can get an overdraft against securities like Equity Shares. FMPs). plan a dream wedding. So in the higher education some time people can not effort a high price at a same time.

Value plus Credit Card. Bank ranges of Cards help to meet financial objectives. 41 . a trip to Bali. If a person wanted fulfills his wants he can get benefits from the HDFC bank’s credit cards facilities. Credit cards A person wants many things like. or budgeting his expenditure. These are loans services providing by HDFC bank which are very hassle free and really benefits for most of customer and most of customer are satisfied by the loan services providing by the bank. CARD SERVICES In today’s competitive and fast time card services providing by the banks are really very important to every person and every business needs or to take meal in to the hotel or to purchase jewellery from the jewellery shops cards are playing good role in the banking sectors. So whether persons are looking to add to his buying power. a diamond ring for wife's dreams. Some dreams can't wait. Different types of credit • • • • Classic cards Silver Credit Card.product to help person expand his business without reducing the capital from his business. he will find a card that suits him. If there's something person has always wanted. Health Plus Credit Card. conducting cashless shopping.

Types of debit card: • • • • • • • • • Classic card Easy shop international Debit card. Specialized card Easy Shop International Business Debit Card. Easy Shop Woman's Advantage Debit Card. Easy Shop NRO Debit Card.• • • • • • • • • Premium Cards: Gold Credit Card Titanium Credit Card Woman's Gold Card Platinum Plus Credit Card Visa Signature Credit Card World MasterCard Commercial Cards Corporate Credit Card Debit card HDFC Bank Debit Cards give person complete and instant access to the money in his accounts without the risk or hassle of carrying cash. Prepaid card Besides offering convenience. Kisan Card. 42 . Premium card Easy shop gold Debit card. Prepaid Cards have been tailored to answer travel and gifting needs.

Food Plus Cards Prepaid Food Plus card. Gift Plus Cards Prepaid Gift Card. but some time he is in to the difficult situation. for that bank help person invest wisely through financial and investment services. Person invest their money in to various schemes or in to the gold or share market etc. Types of investment: - Mutual Funds Invest through the Mutual Fund route to meet varied investment objectives. Insurance 43 . Money Plus Card The Corporate Payment card INVESMENT AND INSURANCE Nowadays a ward investment is becoming more popular.• • • • • • • • ForexPlus Cards Prepaid Travel Card.

HDFC Unit Linked Endowment Suvidha HDFC Unit Linked Enhanced Life Protection GENERAL AND HEALTH INSURANCE Complete protection for business. health. HDFC Assurance Plan. Bonds A secure investment avenue giving stable returns with tax benefits. HDFC Endowment Assurance Plan. Financial Planning Start Now Plan investments to meet financial goals Knowledge Centre Profit from research and make informed investment decisions. HDFC Single Premium Whole of Life Insurance Unit Linked Plans HDFC Unit Linked Young Star Plus II. HDFC Money Back Plan. HDFC Term Assurance Plan. HDFC Savings Assurance Plan.Traditional Plans HDFC children's PLAN. HDFC Unit Linked Young Star Suvidha. 44 . HDFC Unit Linked Pension Plus. travel & more. HDFC Loan Cover Term Assurance Plan. HDFC Unit Linked Young Star Suvidha Plus HDFC Unit Linked Pension. HDFC Unit Linked Endowment Suvidha. HDFC Unit Linked Endowment Plus II.

Equities & Derivatives Leverage bank’s vast information repository and transact online. Foreign Exchange and Trade Services 45 . HDFC Bank has a range of products and services that people can choose from to transact smoothly. FOREX AND TRADE SERVICE Nowadays businesses becoming worldwide e.. India to America but main problems are about monitory transaction because at every country the currency become changed so for that banks are playing a very important for the businesses. Bank offering following Foreign Exchange Products and Services.g. make payments etc. If people need to deal in foreign currency and keep tabs on exchange rates every now and then. transfer monies to India. efficiently and in a timely manner. Mudra Gold Bar Buy 24 Karat gold bars made in Switzerland and certified by Assay.

Remittances. but they have to payment for something so for that reason bank’s payment services become started. Foreign Currency Drafts. Verified By Visa 46 . Important guidelines and schedules. person can bid goodbye to queues and paper work. With HDFC Bank's payment services. PAYMENT SERVICE Nowadays life of a person become very stressful and he/she becoming busy with their own business.The following are different methods of transacting in Foreign Exchange and remitting money: • • • • • • • • Travelers Cheques. Cash to Master. people will need to understand his Foreign Exchange limits. Depending on the nature of transaction or point of travel. Trade Services. All Foreign Exchange transactions are conducted by strictly adhering to RBI guidelines. Forex Services Branch Locator. Bank’s range of payment options make it easy for pay for a variety of utilities and services. Foreign Currency Cash. Cheque Deposits.

What more. Net Safe Now shop online without revealing your HDFC Bank Credit Card number. Bill Pay Pay your telephone. Prepaid Mobile Refill If you are an HDFC Bank Account holder. Through the Internet. electricity and mobile phone bills at your convenience. you can now recharge your Prepaid Mobile Phone with this service. you can now use your HDFC Bank Debit Card also for online purchases. credit and Debit cards at your outlets through state of the art POS Machines or through your website and experience hassle free payment acceptance.with Bill Pay. MasterCard. your mobile phone and telephone . our comprehensive bill payments solution.Do you want to be worry free for your online purchases. Visa Bill Pay Pay your utility bills from the comfort of your home! Pay using your HDFC Bank Visa credit card and forget long queue and late payments forever Pay Now 47 . Now you can shop securely online with your existing Visa Debit/Credit card. ATMs. Merchant Services Accept all Visa.

Direct Pay Shop or Pay bills online without cash or card. no registration required. e-Monies National Electronic Funds Transfer Transfer funds from your account to other Bank accounts across India . Online Payment of Excise & Service Tax Make your Excise and Service Tax payments at your own convenience through HDFC Bank's Net Banking facility. Enjoy credit free period and reward points as per your credit card features. Religious Offerings Now donate to your favorite temple easily and securely using HDFC BANK's Net Banking. Debit your account directly with our Direct Pay service! Visa Money Transfer Transfer funds to any Visa Card (debit or credit) within India at your own convenience through HDFC Bank's Net Banking facility.Use your HDFC Bank Credit Card to pay your utility bills online. make donations and subscribe to magazines without going through the hassles of any registration. Insta Pay Pay your bills. 48 . make subscriptions and donations.FREE of cost.

Thus as retail banking service bank providing really good and beneficial services to their customer and as family member they are providing good services to every customer either they are came business related or anything. It makes you feel special at every step. so that the whole world can see.IMPERIA/PREFERRED/CLASSIC BANKING As a special customer bank providing a TAJ to customer with name imperia/preferred customer. HDFC Bank's preferred/imperia Programme is the royal decree that enhances the exclusivity that you are accustomed to. rises above the expected. the Government of India introduced in 1970 Non-Resident(External) Account Rules which are governed by the Exchange Control Regulations. pampering with services those others can only dream about. This service goes beyond the obvious. NRI BANKING With a view to attract the savings and other remittance into India through banking channels from the person of Indian Nationality / Origin who are residing abroad and bolster the balance of payment position. For that bank provide a special service to their customer. the grandeur and magnificence of royalty is alive and well. So for this reason HDFC bank playing a good role in the customer’s life for their monitory transaction. 49 . that even today.

Current or Fixed Deposits in Indian Rupees. Current or fixed deposits in Indian rupees. free repatriations facilities. namely US Dollars. NRE (Non Resident External Accounts) It can be in the form of Savings.The funds held in Non-Resident (External) Accounts (NRE Accounts) qualify for certain benefits like exemptions from taxes in India. The funds in this account are not repatriable (only interest accrued is repatriable). and Japanese Yen. GBP. 50 . The funds in this account are fully repatriable. FCNR (Foreign Currency Non Resident Accounts) It can be in the form of fixed Deposits only. Euro. DM. etc. in the five major currencies. Deposit types NRI-Banking facilitates the NRI customer to open the following account types. NRO (Non Resident Ordinary Accounts) It can be in the form of Savings. The funds in this account are fully repatriable.

real estate developers and investors. In essence. Bank also understands that business is anything but "small" and as demanding as ever. or employing new staff to cope with the demand. We achieve this through innovative product development and a well-integrated approach to relationship management. transactional and electronic banking products. That's why HDFC Bank has assembled products. which may lead to purchasing new. Also included is banking services offered to other financial institutions. • • • Large Corporate Supply Chain Partners Agricultural Lending Small & medium term enterprises HDFC Bank understands how much of hard work goes into establishing a successful SME.WHOLESALE BANKING Wholesale banking is the provision of services by banks to the like of large corporate clients. a wide array of commercial. person need to keep pace with the growing requests that come in. services. 51 . such as pension funds and government entities/agencies. mid-sized companies. resources and expert advice to help ensure that your business excels. Corporate service Corporate Banking reflects HDFC Bank's strengths in providing our corporate clients in India. or updating existing plant and equipment. And as business expands and enters new territories and markets. Wholesale banking compares with retail banking. international trade finance businesses and institutional customers. wholesale banking services usually involve high value transactions. which is the provision of banking services to individuals.

Value Added Services. 52 . Insurance Companies. Government sector HDFC Bank acts as an active medium between the government and the customers by means of various services. Indirect taxes and Sales Tax collections at their local HDFC Bank. E-Ticketing - Helps the customer by providing him a direct access to book a Railway Ticket online and get it home delivered. Commodity Businesses. Non-Funded Services. Financial Institutions. Trusts. Financial Institutions & Trusts HDFC Bank provides financial services to: • • • • • • • Banks. Internet Banking. • • • • • Funded Services. Specialized Services. These services include: Tax Collection wherein customers can directly pay their taxes like Direct taxes. Stock Brokers.The following links will help identify individual needs. Mutual Funds.

thus facilitating imports for the Government. Electronic Collection of fees on behalf of DGFT is done by the bank too. Collection of levies and taxes on behalf of Municipal Corporations i. Kolhapur.e. Nagpur. Pimpri. is undertaken by the Bank. Pune(FC Road). 53 . Mira Road. Lower Parel. Mints and Presses.Opening of L/C's is done by the bank on behalf of Government of India. Ratnagiri. The Stamp Duty Franking Facility is available at branches in Gujarat Disbursement of Pension to retired Employees of Central Govt and Defence is directly done by HDFC Bank along with the disbursement of pension to the members of EPFO (Employees Provident Fund Organisation). is done via franking mode in the state's of The Stamp Duty Franking Facility is available at following branches in Maharashtra Fort. Panvel. Thane (Talao Pali). Kalyan -Dombivli Municipal Corporation. Collection of stamp duty Maharashtra & Gujarat. Chembur.


in all business concerns. management is personnel administration. Because of the unique importance of HUMAN RESOURCE and its complexity due to ever changing psychology. HRM is concerned with the people’s dimension in organizations. In a sense.e. manpower management function is becoming increasingly specialized. Human personnel function. selection and training of the candidates. Ø Take decisions for approval regarding leave notes. Management is the development of people. I. behavior and attitudes of men and women at work. It is said that people are our single most important assets. train and develop members for an organization.e. He also does screening of the candidates.HUMAN RESOURCE DEPARTMENT “Human Resource Management function that helps managers recruit. Ø He takes the decision related to the recruitment. Personnel function is particularly interested in personnel relationship and interaction of employeeshuman relations. He talks to the consultant related to the recruitment of the qualified candidates.. select. The essential ingredient of management is the leadership and direction of people. The personnel function or system can be broadly defined as the management of people at work. Personnel management is not something you really turn over to personnel department staff. there is one common element. shortlist the candidate and takes the first round of the interview. 55 . Each manager of people has to be his own personnel man. Work force of an Organization is one of the most important inputs of components. Obviously. i. Responsibilities of Human Resource Department. Human capital is the greatest asset of a business enterprise.management of managers and management of workers. and not mere direction of material resources. Ø HRD maintain daily attendance record through branch manager via E-mail.

Then the planning of recruitment and training is done by training manager and recruiting manager which is approved from Head of HR Department.Ø He maintains the database of the candidates to come for an interview. Ø He is responsible for the monthly salary of the employees as per their attendants and passing to the Branch Manager. Every organization needs employee time by time because of promotion or retirement of an employee. Human Resource planning This is handled by doing the planning at the beginning of every year. He also completes the joining formalities of each new employee. As we know it is very important for an industrial concerns to have efficient and effective personnel with right quality and at right time and at right place available whenever they are needed. Ø They are taking surprising visit in every branch and collect information about employees. He also maintains personal file of each employee. 56 . For this purpose an organization need to search for the right candidate. Recruitment Recruitment is a process of searching for prospective candidates for the given job in the industry. Sources of Recruitment Ø Personal data of candidates and data bank maintain by the HR. At the end of the year. department Ø Campus Recruitment. And so it needs to encourage this type of right candidates whenever they require. the Human Resource department from each Branch receives the requirement for the person for whole year.

It is define as the process of differentiating between applicants in order to identify and hire those with a greater likelihood of success in a job. It makes employees more effective and skillful. Ø Advertisement in the news papers like Times of India. Ø Placement consultants. In present dynamic world of business training is more important there is an ever present need for training men. Training and Development Ø Training aims at increasing the aptitudes. Ø Employee reference. they are taking experienced person for 6 month’s probation and for fresher the probation period is 1 year.Ø Company’s own website. Gujarat Samachar. Ø Selection is based on probation base. Recruitment Process Applicant pool Profile Check Shortlist Screening Interview Selection Ø Selection is the process of taking individuals out of the pool of job applicants with requisite qualifications and competence to fill jobs in the organization. is taken by head office at Mumbai. 57 . Ø While the selection of the senior level post. skills and abilities of workers to perform specific job. A new and changed technique may be taken as an advantages and improvement affected in the old methods. So that new and changed techniques may be adopted.

They also provide training related to customer care and communication. 58 . Ø In case of sales persons to distribute their various products. Employee Remuneration and Incentive Payments Ø Remuneration is the compensation an employee receives in return for his/her contribution to the organization. After appraising the performance of the employee they put the grade of each employee in the following grade criteria. Performance Appraisal Ø An organization’s goals can be achieve only when people put in their best efforts. Performance appraisal may be understood as the assessment of an individual’s performance in a systematic way. Ø To appraise the performance of the employee they have developed a credit system on the basis of the given target to the employee. Ø They provide “on the job” training to their employees in the branch as they select these employees for selling various products of bank by direct marketing. Ø The time for training program for the candidate is depends up on the relevant position of his work area. they use to give them on the job work. Whenever they select new candidates for any post. Remuneration occupies an important place in the life of an employee.Ø Training is learning experience that seeks relatively permanent change in an individual that will improve his/her ability to perform on the job. in the beginning the person has to work under the observation of his senior then the have to go in market to have their own experience. It is define as the systematic evaluation of the individual with respect to his/her performance on the job and his/her potential for development.

All the employees get the incentive in the form cash reward. it is required that wages and salaries organization. Employees benefit The employees of HDFC automatically become HDFC bank salary account Holders with special benefit and privileges and receive instant salary credit. They have developed the incentive structure for the employees on the basis of point system. A proper compensation in terms of this is necessary for motivation employees for their continuous improved performance. • Wages and Salary Ø A part from various incentives and benefits. incentives.Ø At HDFC. Ø Wages and salary refers to the establishment and implementation of sound policies and practices of employee’s compensation. A wage and salary is the remuneration paid for the service of labor in production periodically to an employee. employees get incentives on the basis of the target given to each employee and their area of work. remuneration of an employee comprises – wages and salary. While other permanent staff are being given monthly salaries. • Incentive are provided well by In HDFC. The salary of branch manager is around 35000 per month. They use to hire certain salesman on commission base and they are provided their salaries on commission base. As HDFC bank is reputed bank in market the pay scale are as per the standard. the personnel are compensated only in terms of wages and salaries. For all this. While sales officer’s salary ranges from 15000 to 18000 per month. HDFC bank is also giving attractive incentives as per the target. Ø Sales executives (coax) are being given salary of 6000 to 8000 per month. The bank is in service industry so the salary is given on monthly basis. The benefit 59 .

demat accounts. Every employee is free to talk to the head of the particular department if they have any problem related to the job. like branch manager or team manager for better performance in the department. corporate card with individual liability (CCIL). 60 . and host of other services to complement their savings account. Here are some of the features of HDFC Motivation Motivation is willingness to do something conditioned by this action’s ability to satisfy some need. disputes mainly relate to the target only because if any employee is not achieving target he/she will not eligible for incentive which creates frustration among them. Firstly. access to phone banking and internet banking. Disputes and their resolution Disputes are common in organization.include international debit card. Bank’s salary account. In practice. Motivation is given by the responsible person. the problem is solved by the head of the particular department and if the problem does not solved by the head of that department then it is addressed to the HR Manager.


Marketing. It includes advertising. There is a clear return on investment.Marketing Management The activities of a company associated with buying and selling a product or service. celebrity endorsements and general media exposure." said Kelkar. which specialises in predicting the behavior of the customers in the areas of risk and marketing. HDFC has chartered an extensive Customer Lifecycle based marketing campaign calendar for this and the forthcoming fiscal. packaging design. which from a functional point of view gives the team a stronger voice. Fractal. as these concepts are relatively new to people living in smaller towns and cities. selling and delivering products to people. said that these initiatives are especially targeted at those consumers who are not aware about the bank's various value added services such as direct banking facilities. Bank can measure the result of a campaign through the sales that they generate and the customers that are added. Head. HDFC Bank. would be partnering 62 . People who work in marketing departments of companies try to get the attention of target audiences by using slogans. Bank plan to invest close to Rs 12 crore to create the environment that is required to support customer intelligence that leads to data based marketing. Bank has also been able to reduce their ad spends by about 10-15 per cent and has also reduced the cost of acquisition Bank's focus in future would be to enhance its database marketing initiatives. The bank has also launched another initiative called Business Ki Baten. Ajay Kelkar. "We are going to demonstrate the advantages of net banking and mobile banking. which is targeted at areas where the bulk of the population comprises small businessmen. Kelkar said that the bank would get experts to talk on a number of issues such as value-add tax and sales tax.

etc. we have been able to intelligently use the 4-5 terabytes of customer data available in its warehouse. There are learnings that can immediately be 63 . testing every campaign every step of the way. media. thereby. usage patterns. cross selling various asset and liability products to the existing customers. leveraging the existing relationships and proactively retaining existing customers. Marketing Initiatives Taking By The Bank HDFC Bank is possibly the only bank in India. and one of the very few in Asia. Unica has been recognised by Gartner as the leading player in this field. preferences. Fractal will also help the bank solve the problem of ever-increasing customer acquisition costs and reducing customer loyalty. The marketing programmes would involve acquisition of customers profitably by reducing campaign costs. Fractal's analytics-based marketing solutions span which the entire lifecycle of customer relationship right from customer acquisition to customer retention to customer value management. nurture and maximize lasting customer relationships. However. We have set up a team to conduct marketing campaigns in a scientific manner using customer data. messages. the bank also conducts event-based marketing These initiatives also complement our media-based marketing as well as on-theground marketing activities. HDFC has been using analytics for taking informed marketing decisions. the marketing analytics initiative enables us to measure the efficacy of the campaigns. experimenting with creatives. which remain important in the bigger scheme of things. using marketing automation technology provided by Unica. Fractal will help the bank use information to reach new customers and to build. to have embarked on a data-led marketing analytics campaigns initiative. etc. Through this tool. lifecycle. is expected to give HDFC an upper hand in understanding the needs and circumstances of their customers.HDFC Bank's marketing team in various initiatives of growing the retail business quickly and cost effectively.

e-mails. it is homogenous within the segments (exhibits common attributes). it responds similarly to a market stimulus and it can be reached by a market intervention. Market Segmentation Market Segmentation is defined as the process of splitting customers. in a market into different groups. Media Vehicles Used For Send Message To Reach Target Audience HDFC Bank has been predominantly using direct mailers. i. and SMS for communicating our message to our target audience as they are the most costeffective routes of addressing our core target audiences with maximum degree of customization possible . positioning and the planning process. and these campaigns in a way provide us with information about customer choices and preferences that can be used for mass media communication. Market Segmentation simplifies the firm’s product. or potential customers. making those more effective . It is a key ingredient for successful marketing as it simplifies the targeting. it can be targeted separately from other segments of the market. promotion and distribution strategies and also facilitates planning and organizing function of management more easily and cost effectively. within which the customers share a similar level of interest in the same or comparable sets of needs satisfied by a distinct marketing proposition.e. a particular group that has its own distinct customer profile and buyer characteristics so that for marketing purposes. it is also explained as a marketing technique that targets a group of customers with specific characteristics.absorbed and incorporated in the next campaigns. A true Market Segment meets all of the following criteria: it is distinct from other segments (heterogeneity across segments). or segments. pricing. but it requires a 64 .

values. 2. 3. norms and standards of the organization.it should justify the expected profits and the growth potential. and various others factors like the mission. demographic environment. global perspective. gender and other measurable factors (Demographic Segmentation). Philip Kotler mentioned five criteria for an effective segmentation which states that Segmentation should be: 1. Market Segmentation can be done on the basis of the location (Geographic Segmentation). beliefs. 4. Relevant: . social and cultural factors. loyalty and responsiveness (Behavioral Segmentation). economic environment. .the target customers must be reachable and servable for the organization. attitudes.the target audiences must be diverse and able to show different reactions to different marketing mix.it should be possible to determine the values of the variable used for the segmentation. their internal strengths and weaknesses. as well as the competitors strategy. on the basis of lifestyle. external opportunities and threats. Accessible: . technological and political / legal aspects before deciding their own niche.the firm must have an ability to draw an effective marketing 65 program for its customers. vision. on the basis of age. and according to the history. 5. dislikes.thorough understanding of the customers needs. A business must analyze the different needs of the market segments. Measurable: . Distinguishable: . likes. Feasible: . taste and preferences (Psychological Segmentation). income. It is referred as a tool for defining markets and thereby allocating resources. it uses statistical techniques called factor analysis and cluster analysis to combine attitudinal and demographic data to develop segments that are easier to target.

Market segmentation is an effort to increase a company’s precision marketing. natural.Through proper market research and market segmentation (it is the process of pulling apart the entire market as a whole and separating it into manageable disparate units based on various demographic. political. return. global. tax benefits etc. It is generally studied and mapped by the organization through list and reports containing demographic information that may have an effect on the marketing of key products / services. economic. technological. following the market strategy of mass marketing”. demographic. geography.Identify the potential buyers: . economic and social factors.The factors that influence Targeting are the Internal and External Environment. values and objectives of the firm. whereas. socio-economic grouping. Internal environment includes the mission. gender. purchasing power. Target Marketing “Market Specialization is a business term meaning the market segment to which a particular good or service is marketed. A product focusing on a specific target market contrasts sharply with one. As HDFC bank is a service sector industry they introduce different schemes for different people. External factors are the social. or any other combination of demographics.Select the target audiences: . it can also be customer / product / competition related segmentation). A market segment consists of large identifiable group within a market with similar wants. cultural. buying attitudes or buying habits. Which are as follows: STEP 1: . It is mainly defined by age. liquidity. political and 66 . Each person is different in nature and each have differ criteria for investment like risk factor. STEP 2: . Targeting can be done by the firms by adopting a logical and systematic methodology / steps. task. vision.

an institution. Positioning Strategy “Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the target market’s mind. you position the product in the mind of prospect. image. Price. publicity. Place and Promotion and obtain the demographic. psychological. promotion. and competitors change over time. or even a person. It is accurate positioning strategy because it signifies a trust with its clients. That is. service.legal environment. Through appropriately compiling the customers profile to decide the 4 P’s – Product. Positioning can be in the form of product. advertising. Once the company has developed a clear positioning strategy. Positioning is what you do the mind of the prospect.After developing an appropriate segmentation and target strategy. Positioning starts with a product. positioning strategy can be worked out effectively. a service. gain competitive advantage and place the brand in the customers mind to enhance their goodwill and become the most preferred brand. distribution channel. public relation or selling differentiation. Positioning enables the firm to create a positive image. A company’s differentiating and positioning strategy must change as the product. HDFC bank have positioning strategy of “Continuing a Tradition of Trust”. products to be offered and appropriately positioning each product to the segment. Targeting is deciding the potential buyers. Here is special Relationship Manager dedicated towards customer service and satisfaction and give them guidance about various schemes which helps them to get right 67 . market.Proper positioning of the Product: . a company. But positioning is not what you do to a product. people. STEP 3: . price. A piece of merchandise. it must communicate that positioning effectively. geographic and behavioral information of the buyer.

scheme which suit their needs. FINANCIAL DEPARTMENT 68 . In this way it continues to maintain a trust with its clients.

69 .INTRODUCTION OF FINANCE DEPARTMENT In this modern era it is very easy to know how much important the finance is in the business. We can define financial management as a task of acquisition and utilization of funds needed in the business in a manner so that organizations goal can be achieved. ORGANIZATION OF FINANCIAL ACTIVITIES OF BANK For the bank finance itself is the product now it is not an easy task to manage this finance. For the bank as it is a Financial Institution we can consider finance as lifeblood of this business. As current position of the market is totally different from ancient where it was very easy to get the finance. of depositors who are there with the bank. As today people are facing lot of problem and have less confidence on the market so it is difficult to raise fund without proper planning. for the bank “Finance itself is business”. But now a days it is not so. As bank has to keep watch on the deposits of its millions of customers and also it has to manage its own large financial base. line organization. it is very difficult task to raise funds from market. In HDFC Bank. The company should manage to get sufficient finance. line and staff organization. authority passes from top to bottom and responsibility passes from bottom to top level management. There are different types of organizational structure such as group organization.e. As in recent it is popular “No finance no business”. its chief Financial Officer and Treasurer manage the finance. Due to proper policies and separate management the company can have proper operation of finance. HDFC Bank has line of authority and line of authority is vertical i. The company should use to keep proper planning for the finance of its own and also of the large no.

As HDFC Bank is very big company and it has large cliental base so it is very difficult and complicated to manage its finance in proper way. There we need of concrete and proper policies to have proper management of it. Because of big size of the bank one cannot manage all the accounts of it alone. So, company has to appoint many different persons so that there is proper maintenance of the funds of different persons is possible.

Rs. Lacs

Interest Income Interest Expense Net Interest Income Other Income Net Revenues Operating costs Operating Result Provisions and Contingencies Loan Loss Provisions Others Profit before tax Provision for taxation Profit after tax Funds : Deposits Subordinated debt Stockholders’ Equity Working Funds Loans Investments 70

2008 - 09
16,332,26 8,911,10 7,421,16 3,290,60 10,711,76 5,532,81 5,178,95 1,879,71 1,726,28 153,43 3,299,24 1,054,31 2,244,93 142,811,58 6,477,80 14,646,33 183,270,77 98,883,05 58,817,55

2009 – 10
16,172,90 7.786,30 8,386,60 3,807,61 12,194,21 5,764,48 6,429,73 2,140,59 1,938,93 201,66 4,289,14 1,340,44 2,948,70 167,404,44 6,353,10 21,519,58 222,458,57 125,830,59 58,607,62

Key Ratios : Earnings per share (Rs) Return on Average Net worth Tier 1 Capital Ratio Total Capital Ratio Dividend per share (Rs) Dividend payout ratio Book value per share as at March 31 (Rs) Market price per share as at March 31 (Rs)* Price to Earnings Ratio Rs. 10 Lac = Rs. 1 Million Rs. 1 Crore = Rs. 10 Million **Proposed *Source: NSE 52.85 16.12 % 10.58 % 15.69 % 10.00 22.17 % 344.31 973.40 18.42 67.60 16.80 % 13.26 % 17.44 % 12.00 ** 21.72 % 470.12 1933.50 28.62

Auditor's Report on Financial Statements
To The Board of Directors, HDFC Bank Limited


We have examined the attached Consolidated Balance Sheet of HDFC Bank Limited (“the Bank”) and its subsidiaries and associates (the Bank and its subsidiaries and associates constitute “the Group”) as at 31 March 2010 and also the Consolidated Profit and Loss Account and the Consolidated Cash Flow Statement for the year ended on that date annexed thereto. These consolidated financial statements are the responsibility of the Bank’s management and have been prepared by the management on the basis of separate financial statements and other financial information regarding components. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the 71

accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. We did not audit the financial statements of one of the subsidiaries, whose financial statements reflect total assets of Rs. 3,371,474 Thousands as at 31 March 2010, total revenue of Rs. 2,353,099 Thousands and net cash inflows amounting to Rs. 618,656 Thousands for the year then ended. These financial statements and other financial information have been audited by other auditors whose report has been furnished to us, and our opinion is based solely on the report of the other auditor. We have also relied on the unaudited financial statements of certain associates provided by the management and included in the consolidated financial statements. These unaudited financial statements reflect the Group’s share of net profit of Rs. 32,740 Thousands for the year then ended. We report that the Consolidated financial statements have been prepared by the Bank’s management in accordance with the requirements of Accounting Standard (AS) 21, Consolidated Financial Statements and Accounting Standard (AS) 23, Accounting for Investments in Associates in Consolidated Financial Statements issued by the Institute of Chartered Accountants of India. Based on our audit and on consideration of the report of other auditor on separate financial statements and on the consideration of the unaudited financial statements of the associates and on the other financial information of the components, and to the best of our information and according to the explanation given to us, we are of the opinion that the attached consolidated financial statements give a true and fair view in conformity with the accounting principles generally accepted in India; (i) in the case of the consolidated balance sheet, of the state of affairs of the group as at 31 March 2010; (ii) in the case of the consolidated profit and loss account, of the profits of the group for the year ended on that 72

* Softcell Technologies Ltd. Atlas Documentary Facilitators Company Private Ltd. 73 .e. HBL Global Private Ltd.0 Nil 12. i. SolutionNET India Private. * SolutionNET India Private Ltd. of the cash flows for the group for the year ended on that date. Ltd.0 29. International Asset Reconstruction Company Private Ltd. March 31. with its following subsidiaries and associates : Name HDFC Securities Ltd. HDB Financial Services Ltd. and (iii) in the case of the consolidated cash flow statement. ceased to be an associate with effect from May 5.3 29. 2010. Centillion Solutions and Services Private Ltd.0 95. The consolidated financial statements present the accounts of HDFC Bank Ltd.9 Nil The audited financial statements of the subsidiary companies and the un-audited financial statements of associate companies have been drawn up to the same reporting date as that of the Bank.4 29.date. 2009. Relation Subsidiary Subsidiary Associate Associate Associate Associate Associate Associate Country of Incorporation India India India India India India India India Ownership Interest (%) 59.

2010 74 .Consolidated Balance Sheet As at March 31.

Consolidated Profit and Loss Account As at March 31. 2010 75 .

Consolidated Cash Flow Statement As at March 31. 2010 76 .

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


79 .

80 .

81 .

82 .

83 .

84 .

The Bank consolidates its subsidiaries in accordance with AS-21. the bank lends monies against incoming pledge of securities. issued by the Institute of Chartered Accountants of India on a line-by-line basis by adding together the like items of assets. Accounting for Investments in Associates in Consolidated Financial Statements. the difference between the sale price and book value. In a reverse repo transaction. liabilities. which together constitute the ‘Group’. income and expenditure. Borrowing costs on repo transactions are accounted for as interest expense. is provided as a loss in the income statement. The securities purchased are debited to the investment account at the 85 . In respect of repo transactions outstanding at the balance sheet date. B. Further. the bank borrows monies against pledge of securities. by the equity method of accounting. The book value of the securities pledged is credited to the investment account. Consolidated Financial Statements. Repo and Reverse Repo Transactions: In a repo transaction. its subsidiaries and associates. (the Bank).NOTES ON PRINCIPAL ACCOUNTING POLICIES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS A. if the former is lower than the latter. Principles of Consolidation: The consolidated financial statements comprise the financial statements of HDFC Bank Ltd. the Bank accounts for investments in associates in accordance with AS-23. issued by the Institute of Chartered Accountants of India. Capital reserve on consolidation represents the difference between the Bank’s share in the net worth of the subsidiary and the cost of acquisition at the time of making the investment in the subsidiary.

Revenues thereon are accounted as interest income.market price on the date of the transaction. Revenues thereon are accounted as interest income. Current investments are valued at cost or market value. Current investments are valued at lower of cost and net realizable value. In respect of repo transactions under Liquidity Adjustment Facility with RBI (LAF). The provision is based on an independent external actuarial valuation at the balance sheet date. C. Investments which are long term in nature are stated at cost. In respect of reverse repo transactions under LAF. HDB Financial Services Ltd. 86 . monies paid to RBI are debited to investment account and reversed on maturity of the transaction. monies borrowed from RBI are credited to investment account and reversed on maturity of the transaction. HDFC Securities Ltd. in the value of long-term investments. whichever is lower. Costs thereon are accounted for as interest expense. Compensated Absences The Company does not have a policy of encashment of unavailed leaves for its employees. The Company provides for compensated absences in accordance with AS-15 (revised 2005) Employee Benefits. All investments of long-term nature are valued at cost. Provisions are made only in case of permanent diminution in the value of investment. Provision is made to recognise a diminution. other than temporary.

2008. 1949 which was approved by the shareholders of both the banks on March 27.83. 10/. 2009 the Centurion Bank of Punjab got merged with HDFC Bank Ltd.D. The excess of the value of net assets transferred over the paid up value of shares issued in consideration have been adjusted in Amalgamation Reserve as per the Scheme of Amalgamation.01. 1/. and was effective from May 23. 2008 was sanctioned by the RBI vide their order DBOD No. As per the Scheme. Merger of the Centurion Bank of Punjab Limited During the year ended March 31. 1949. E. in consideration of the transfer of and vesting of the undertaking of CBoP. As per the Scheme. 16197/16.each of CBoP held by them on the record date i. The Scheme of Amalgamation (‘the Scheme’) of Centurion Bank of Punjab Limited (‘CBoP’ or ‘eCBoP’) with HDFC Bank Ltd. one equity share of HDFC Bank of the face value of Rs. 2008. June 16. 2008. April 1. Geographic Segments Since the Group does not have material earnings emanating outside India.98.131/2007. PSBD. 2008.each fully paid-up was issued to members of the eCBoP for every twenty nine equity shares of the face value of Re.each of HDFC Bank were allotted at par to the shareholders of CBoP vide board resolution dated June 24. 2008.08 dated May 20. upon its coming into effect from the appointed date i. Accordingly 6. the Group is considered to operate in only the domestic segment (India). 10/. The appointed date of the merger was April 1.956 equity shares of Rs. 87 . Both the entities were banking companies incorporated under the Companies Act.e. (‘HDFC Bank’ or ‘the Bank’) under section 44 A (4) of the Banking Regulation Act.e. 1956 and licensed by the RBI under the Banking Regulation Act. 2008. the entire undertaking of CBoP including all its assets and liabilities stood transferred / deemed to be transferred to and vest in HDFC Bank.

15 ) (288.089. a surplus of Rs.The amalgamation has been accounted using the pooling of interest method.956 equity shares of face value of Rs. 2008 adjusted for options allotted by eCBoP between April 1. 88 . 1.03 lacs arose. Such adjustments. Accordingly. 2008 were accounted at the values at which they were appearing in the books of CBoP as on March 31.03) 1. After accounting the assets. lacs) Particulars Net Assets of eCBoP as on the reporting date of merger* Less : 6.17) 1. as per the Scheme. liabilities and reserves of CBoP and after effecting the above adjustments. 2008 and provisions arising out of harmonization of accounting policies and estimates.98. the assets and liabilities of CBoP that vested in HDFC Bank as on April 1. Also the Bank provided for merger related expenses on a best estimate basis. 10 each Less : Statutory Reserves taken over on amalgamation Excess of net assets over the paid-up value of shares issued and Statutory Reserve Less : Harmonization of accounting policies and estimates Less : Expenses related to merger Amalgamation Reserve (69.62) (62.049. as approved by the Board of Directors of HDFC Bank and as prescribed in the Scheme. which was credited to Amalgamation Reserve in accordance with the Scheme.83. were made for the difference between the net value appearing in the books of CBoP and the value as determined by HDFC Bank.82 (690. were made by the Bank against the reserves arising on amalgamation.88) (218. (Rs. 2008 till May 22. 2008.801.049.85 *Net assets taken over on April 1.03 Amoun t Amount 2.

As per AS-14, Accounting for Amalgamation, if the amalgamation is an “amalgamation in the nature of merger”, the identity of reserves of the amalgamating entity is required to be preserved in the books of HDFC Bank. However the balances in Profit and Loss Account (Rs. 246,49 lacs), Securities Premium Account (Rs. 1,354,60 lacs), Capital Reserve (Rs. 65 lacs) and Investment Reserve Account (Rs. 7,02 lacs) have been credited to Amalgamation Reserve in accordance with the scheme. As a result the balances in these accounts are lower by the aforesaid amounts.

F. Earnings Per Equity Share
Basic and Diluted earnings per equity share have been calculated based on the net profit after taxation of Rs. 3,003,65 lacs (previous year : Rs. 2,248,99 lacs) and the weighted average number of equity shares outstanding during the year amounting to 436,439,573 (previous year : 424,754,825).

G. Related Party Disclosures
As per AS-18, Related Party Disclosure, issued by the Institute of Chartered Accountants of India, the Bank’s related parties are disclosed below : Promoter Housing Development Finance Corporation Ltd. Enterprises under common control of the promoter HDFC Asset Management Company Ltd. HDFC Standard Life Insurance Company Ltd. HDFC Developers Ltd. HDFC Holdings Ltd. HDFC Investments Ltd. HDFC Trustee Company Ltd. GRUH Finance Ltd. 89

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

H. Small and Micro Industries
HDFC Bank Ltd.


Under the Micro, Small and Medium Enterprises Development Act, 2006 which came into force from October 2, 2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises. There have been no reported cases of delays in payments to micro and small enterprises or of interest payments due to delays in such payments. HDFC Securities Ltd. On the basis of the intimations received from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 there are five (previous year : nine) suppliers registered under the said Act, and there are no amounts unpaid to these suppliers as at the year end. HDB Financial Services Ltd. The Company has received intimation from a supplier regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and amount unpaid as at March 31, 2010 is Rs. 0.3 lacs (previous year : Rs. 36 lacs).


Capoor. are placed before the Committee for ratification. performance. Jagdish Capoor. Allotment of shares to the employees on exercise of stock options granted under the various Employees Stock Option Schemes which are made in terms of the powers delegated by the Board in this regard. Aditya Puri and Mr. transmission. Mr. retain and motivate employees. The Committee is chaired by Mr. The Bank’s compensation policy provides a fair and consistent basis for motivating and rewarding employees appropriately according to their job role / size. splitting and consolidation of shares. skill and competence. The Committee is chaired by Mr. Mr. Ashim Samanta. Pandit Palande are the members of the Committee. The Committee met 6 (Six) times during the year. The Committee also monitors redressal of complaints from shareholders relating to transfer of shares. etc. The powers to approve share 92 . Jagdish Capoor. Jagdish Capoor.NOTES ON CORPORATE GOVERNANCE Compensation Committee The Compensation Committee reviews the overall compensation structure and policies of the Bank with a view to attract. All the members of the Committee other than Mr. Investor Grievance (Share) Committee The Committee approves and monitors transfer. non-receipt of Annual Report. Gautam Divan. dividends. considers grant of stock options to employees and reviews compensation levels of the Bank’s employees vis-à-vis other banks and industry in general. contribution. Mr. Capoor are independent directors. Mr. The Committee consists of Mr. Gautam Divan and Dr.

907 letters were received from the shareholders relating to change of address. Aditya Puri. Vasudev and Mr.transfers and dematerialisation requests have been delegated to executives of the Bank to avoid delays that may arise due to non-availability of the members of the Committee. ECS / NECS Mandates. Renu Karnad. The Committee develops Bank’s credit and market risk policies and procedures. nomination requests. The Committee met 6 (six) times during the year. As on March 31. 93 . verifies adherence to various risk parameters and prudential limits for treasury operations and reviews its risk monitoring system. These letters have also been responded to. Paresh Sukthankar. The Committee also ensures that the Bank’s credit exposure to any one group or industry does not exceed the internally set limits and that the risk is prudentially diversified. 2010. M. Risk Monitoring Committee The Committee has been formed as per the guidelines of Reserve Bank of India on Asset Liability Management / Risk Management Systems. During the year under review 1888 complaints were received from the shareholders. Besides 10. Renu Karnad. queries relating to annual reports and amalgamation. The Committee consists of Mrs. Mr. Mr. C. requests for revalidation of dividend and fractional warrants and other investor related matters. The details of the transfers are reported to the Board of Directors from time to time. 78 instruments of transfer representing 4346 shares were pending and since then the same have been processed. The Committee met 15 (fifteen) times during the year. All the complaints were attended to and as on 31st March 2010 no complaints remained unattended. The Committee is chaired by Mrs.

all the directors. e) Training of Board Members The Bank’s Board of Directors consists of professionals with expertise in their respective fields and industry.COMPLIANCE WITH NON-MANDATORY REQUIREMENTS a) Board of Directors The Bank maintains the expenses relating to the office of non-executive Chairman of the Bank and reimburses all the expenses incurred in performance of his duties. 1949. cannot hold office continuously for a period exceeding 8 (eight) years. g) Whistle Blower Policy 94 . They endeavor to keep themselves updated with changes in global economy and legislation. b) Remuneration Committee The Bank has set-up a Compensation Committee of Directors to determine the Bank’s policy on remuneration packages for all employees. The Committee comprises majority of independent directors. The performance evaluation of the members of the Nomination Committee is done by the Board of Directors excluding the Directors being evaluated. f) Mechanism for evaluating non-executive Board Members The Nomination Committee evaluates the non-executive Board members every year. other than the Chairman and/or whole-time director. Pursuant to Section 10(2A) of the Banking Regulation Act. Mr. They attend various workshops and seminars to keep themselves abreast with the changes in the business environment. Jagdish Capoor is the Chairman of the Committee and is not an independent Director.

73 16.07 9. The Audit and Compliance Committee of the Bank has reviewed the functioning of the Whistle Blower mechanism.25 No. No. Category 1 2 3 4 5 6 7 8 9 10 Promoters * J P Morgan Chase Bank ( Depository for ADS ) Deutsche Bank Trust Company Americas ( Depository for GDR ) Foreign Institutional Investors Foreign Bodies / Foreign Nationals / Overseas Corporate Bodies and Non Resident Indians Financial Institutions / Banks Insurance Companies Mutual Funds / UTI Indian Companies Individuals TOTAL 220484 34892409 20004918 41503470 43959792 457743272 0.74 26. 2010 Sr.05 7.62 4.37 9.59 * None of the equity shares held by the Promoter Group are under pledge. CATEGORIES OF SHAREHOLDERS AS AT MARCH 31.The Bank has adopted a Whistle Blower Policy pursuant to which employees of the Bank can raise their concerns relating to fraud. of Shares 108643220 77694909 3407493 121692561 % to Share Capital 23.97 0.60 100. SHARE PRICE / CHART 95 .00 5724016 1. None of the personnel has been denied access to the Audit and Compliance Committee. malpractice or any other activity or event which is against the interest of the Bank or society as a whole.

The monthly high and low quotation of Bank’s equity shares traded on Bombay Stock Exchange Ltd (BSE) and National Stock Exchange of India Ltd (NSE) during FY 2009-10 and its performance vis-à-vis BSE SENSEX and S&P CNX NIFTY respectively is as under: 96 .


sec. The share dealing code. USA. etc. The shareholders can visit the Bank’s web-site for financial information.gov where the investors can view statutory filings of the Bank with the Securities and Exchange Commission. inter alia. dividend policy. CODE FOR PREVENTION OF INSIDER TRADING The Bank has adopted a share dealing code for the prevention of insider trading in the shares of the Bank. 98 . shareholding information.hdfcbank. key shareholders’ agreements. The web-site also gives a link to www. Memorandum and Articles of Association of the Bank.The quarterly and half-yearly unaudited financial results are published in 'Business Standard' in English and 'Mumbai Sakal' in Marathi (regional language).com. prohibits purchase / sale of shares of the Bank by employees while in possession of unpublished price sensitive information in relation to the Bank. The results are also displayed on the Bank’s web-site at www.

Crores) 183271 222459 2009 2010 ADVANCES (Rs. Crores) 98883 127262 2009 2010 99 .BALANCE SHEET SIZE (Rs.

Crores) 61154 72271 2009 2010 100 .RETAIL ASSETS (Rs.

DEPOSITS (Rs. Crores) 142812 167404 2009 2010 101 .

Crores) 49877 34915 2009 2010 102 .SAVINGS DEPOSITS (Rs.

Crores) 2245 1590 1141 871 510 120 210 297 388 666 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 103 .20% 16.RETURN ON CAPITAL (%) 16.80% 2009 2010 2949 PROFIT AFTER TAX (Rs.

9 13.12 DIVIDEND PER SHARE (Rs.5 1.) 8.8 18 5.2 36.5 10 7 5.9 8.6 EARNING PER SHARE (Rs.5 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 67.9 46.5 3.5 2.9 22.6 11 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 104 .3 27.) 52.) (Rs.6 2 3 4.

31% Interest expense 42.63% 7.30% tax prov isions div idend & Tax on Div idend Transfer to reserv e 4.09% 19.28% Operating Expense Shareholding Pattern as on 31st March. 2010 105 . Exchange & Brokerage Other interest income FX & Deriv e income ativ 14.48% 11.75% Interest from inv estment Others RUPEE SPENT 31.17% 1.93% Interest from adv ances Profit on inv estment 3.RUPEE EARNED 0.05% 0.55% Commission.46% 60.00% 3.

106 .

who led a convention at Stanford University in the 1960s and 1970s using data from Fortune 500 companies. Opportunities. Weaknesses. 107 . The technique is credited to Albert Humphrey. and Threats involved in a project or in a business venture.WHAT IS SWOT ANALYSIS? SWOT Analysis is a strategic planning method used to evaluate the Strengths. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective.

BPO. HDFC’s insurance.4 per cent Free float available. Products have required accreditations. competitors Large share of low-cost deposits. • • • • • • • • • High degree of customer satisfaction. AMC. The management of the bank is termed to be one of the best in the country. Besides the core business. Dedicated workforce aiming at making a long-term career in the field. • • • HDFC has differentiated itself from its peers with its diversified network and revamped distribution strategy HDFC has been highly proactive in passing on the cost and benefit to customers. NPA of 0. Superior customer service vs. Lower response time with efficient and effective service. and real estate private equity businesses are also growing at a rapid pace and the estimated value of its investments/subsidiaries explains ~30% of HDFC’s market capitalization. banking.SWOT ANALAYSIS OF HDFC BANK STRENGTHS • HDFC is the strongest and most venerable play on Indian mortgages over the long term. higher net interest margin Better quality of assets. FIIs can buy its stock Higher profitability 108 .

Could extend to overseas broadly Fast-track career development opportunities on an industry-wide basis. Processes and systems. • HDFC Bank plans to set up a non-banking finance company (NBFC) to undertake fund-based activities. An applied research centre to create opportunities for developing techniques to provide added-value services. HDFC Bank anticipates major cost savings whilst maintaining high levels of customer service thanks to new enterprise software agreement. Unique partnership to create job opportunities for IFBI’s PGDBO students HDFC bank automates business processes with Staff ware. etc need to be better managed Management covers insufficient. growing only organically Possible takeover target OPPORTUNITIES • • • • • • • Fast growing insurance business in the country.WEAKNESSES • • High dependence on individual loans. Untapped rural markets. Sectoral growth is constrained by low unemployment levels and competition for staff • • • • Marginal international presence No next line of leadership Not very aggressive in M&A space. Major stake held by American financial groups which are under stress due to economic slowdown. • • • • Customer service staff needs training. 109 .

which are known for their state of art working and keeping low operation costs. Varying and In-Convenient ECS dates. • After showing a significant growth overall. India is able to attract many international financial & banking institutes.10. Unlike Government Banks. High volume/low cost market is intensely competitive.• In recent times. Very high competition prevailing in the industry Extension overseas holds a lot of risk! Threat from credit card collections dept.000 110 . YES Bank etc which posses an external entrant threat to HDFC Bank – as this Banks are known for their art of working and maintain high standards of customer service. India has witnessed entry of many international banks like CITI Bank. THREATS • • • Loss of market share to commercial banks and HFC’s Higher than expected increase in funding cost Risk of fraud and NPA accretion due to increase in interest rates and fall in property prices is inherent to the mortgage business • • • • • • • Lack of infrastructure in rural areas could constrain investment. an account needs a minimum balance of Rs.

W – T Strategies Weakness: • Not Equal to International Standards. Opportunity: • Market Expansion. Opportunity: • Outsourcing of Non – Core Business. WEAKNESSES W – O Strategies Weakness: • Workforce Responsiveness. Strategy: • Consider additional benefits 111 . Strategy: • Deep Penetration into Rural Market.COMPETITIVE SWOT ANALYSIS STRENGTHS O P O R T U N I T I E S S – O Strategies Strength: • Large Capital base. Strategy: • Outsource Customer Care & other E-Helps. Strategy: • Steps to Ensure Loyalty by old Customers. S – T Strategies T H R E A T S Strength: • Low operating costs Threat: • Increased Competition from others Pvt. Threat: • Entry of many Foreign Banks. Banks.

Opportunity: Seeing the present financial & economic development of Indian Economy and also the tremendous growth of the Indian Companies including the acquisition spree followed by them.Detailed Analysis Strength . 19. Banks from a great gap.Threat Analysis 112 . Strategy: From the analysis of Strength & Opportunity the simple and straight possible strategy for HDFC Bank could be . it clearly states the expanding market for finance requirements and also the growth in surplus disposal income of Indian citizens has given a huge rise in savings deposits – from the above point it is clear that there is a huge market expansion possible in banking sector in India.to penetrate into the rural sector of India for expanding its market share as well as leading all other Pvt.e.Opportunity Analysis Strength: It is well know that HDFC Bank has the largest Authorised Capital Base in the Banking System in India i.000. Strength . having a total capacity to raise Rs.000.000 (Non – Premium Value).

Strategy: 113 . Opportunity: In the present world. India is able to attract many international financial & banking institutes. India is preferred one of the best places for out – sourcing of business process works and many more. therefore guaranteeing continuous business. Weakness . though HDFC Bank has better responsible staff but it still lacks behind its counterparts like HSBC. CITI BANK. Threat: After showing a significant growth overall.Strength: HDFC Bank is not only known for large capital but also for having a low operations cost though having huge number of branches and services provided. Strategy: To ensure that HDFC Bank keeps going on with low operation cost & have continuous business it should simply promote itself well & provide quality service so as to ensure customer loyalty. YES BANK etc. which are known for their state of art working and keeping low operation costs.Opportunity Analysis Weakness: It is well known that workforce responsiveness in banking sector is very low in Indian banking sector.

Weakness .As international companies are reaping huge benefits after out-sourcing there customer care & BPO’s. Strategy: After having new entrants threat. HDFC Bank has not been able to keep up the international standards in providing customer service as well as banking works. YES Bank etc which posses an external entrant threat to HDFC Bank – as this Banks are known for their art of working and maintain high standards of customer service. additional works of customers. HDFC Bank should come up with More additional benefits to its customer or may be even reduce some fees for any NEWS RELEASE 114 .Threat Analysis Weakness: Though having a international presence. India has witnessed entry of many international banks like CITI Bank. Threat: In recent times. this same strategy should be implemented by HDFC Bank so as to have proper customer service without hindering customer expectations.

can now have the satisfaction of instantaneously getting their donations reach Golden Temple through a user friendly secure website feature of HDFC Bank.Electronic Religious Offering HDFC Bank ties up with Golden Temple. Rajan. This tie-up will enable lakhs of devotees of Golden Temple spread across the world. said Mr. Country Head . Devotees of Golden Temple who were unable to make trip to Amritsar for any reason. Avtar Singh Makkar. A.Operations. A. to conveniently send their offerings to the holy shrine using HDFC Bank’s secured net banking services. Country Head-Operations. 2010: HDFC Bank. President Shiromani Gurdwara Parbandhak Committee formally launched the payment gateway. Rajan. President. said. “India is a spiritually enlightened country and HDFC Bank has always used technology that touches lives of our customers in all the spheres. HDFC Bank. Avatar Singh Makkar. Shiromani Gurdwara Parbandhak Committee. one of the premier banks in the country signed an agreement with Shiromani Gurdwara Parbandhak Committee for offering e-collection through HDFC Bank Payment Gateway. The website offers a variety of payment options to the devotees to make their offerings. or pay by a debit card or a credit card of any Bank. It also enables the devotees to select the specific purpose for which the donation is made." “We welcome this initiative by HDFC Bank as it offers devotees a convenient way of showering their gratitude”. February 8. which includes direct debit to their accounts with the HDFC Bank. Mr. Mr. Amritsar for online donation Mumbai. 115 . HDFC Bank and Mr. There are large numbers of devotees based across the globe who can now avail this facility. Speaking on the occasion.

Shree Anantha Padmanabha Temple etc. Guruvayuoor Temple. The survey also recognized HDFC Bank as the „Best Local Bank in India‟ for the second consecutive year. Nathdawara Mandir. HDFC Bank has designed a special product for Religious institutions to make the donation process simple and easy for devotees across the world. According to Euromoney. Some of the religious organizations already availing this facility through HDFC Bank are Mata Vaishnodevi Temple. 2010: HDFC Bank.HDFC Bank has pioneered the concept of electronic religious offering and is already offering this facility to major temples across the country. gurudwaras and mosques pan India. HDFC Bank now has 147 branches in Punjab. The Bank is well poised to offer its proven technology based products to all the leading temples in Punjab to enable them reach out to their devotees. Rama Krishna International Mission. one of India‟s premier banks. Shree Sidhivinayak Temple. 116 . The Bank has already tiedup with 37 religious organizations including. Shree Jagannath Temple. The Bank has also designed a special collections and payment services for the Temple Administration for its daily operations. temples. churches.2010. HDFC Bank's nomination as „Best Private Banking Services‟ indicates the Bank‟s excellence in both advisory and portfolio management across a range of asset classes and investment styles. For this purpose. Shirdi Sai Baba Sansthan. has been declared the „Best Private Banking Services overall„ in the Euromoney‟s annual global Private Banking and Wealth Management Poll . Shanta Durga Temple. SomnathTemple. Euromoney declares HDFC Bank ‘Best Private Banking Services overall’ in India -Also adjudged ’Best Local Bank in India’ for the 2nd year in a rowMumbai. February 17.

Euromoney Private Banking and Wealth Management Services is the global industry benchmark for the wealth management industry and cover over 60 countries every year.” He further added “In the process we have also outperformed all global private banks operating in India. as well as global and regional awards. Abhay Aima. This is the Bank's 8th ATM in the city 117 . Commenting on this recognition. The year Euromoney received a total of 1800 votes.8 trillion of assets under management. HDFC Bank opens its 4000th ATM in the country Mumbai. Group Head – Equities. 2010: HDFC Bank. we have moved up in rankings. up almost 10% on last year‟s poll. one of India’s premier banks. NRI & International Consumer Business said “It is an honor for us to be conferred with these awards. The results are based on combinations of performance figures and nominations. The survey also includes competitors' perceptions of the best performing providers in defined client and product categories. has opened its 4000th ATM in the country at Mangalore. Interestingly even in Asia. Votes cast represented $6. Third Party Products. The growth in private banking in India is inclusive and we are witnessing growth from Tier 2 and Tier 3 cities also.The rankings are based on qualitative and quantitative survey supported by quantitative data provided by the participating banks. February 21.” The survey results reflect a global trend where new regional/ national players along with a few leading international banks are now making good inroads in the global Private Banking space. At HDFC Bank. we understand the challenges in the market and strongly believe that we have the right business strategy to address the growing market needs and capitalize on opportunities to build partnerships for mutual development with our clients. Private Banking. in the private bank category. to 10th position in the current year from 23rd in the previous year.

“We have always believed in using technology to enhance customer experience and the fact that over 80% of our regular customers transact at the ATM is proof that adoption of such innovations is very high. Surathkal was inaugurated by Mr. Marketing & Direct Banking Channels said. viewing account balances and mini statements. 2010: HDFC Bank. cheque status enquiry. now do cash withdrawal at any HDFC Bank ATM in 40% less time. The time thus saved is utilized for logical cross sell and targeted marketing to the customers. The new ATM located at Vijaya Mahal.Retail Liabilities. the Bank has won the ’Best Retail Bank in India’ award for the fourth year in a row. Mangalore. Beating a host of other competitors in Asia Pacific. one of India’s premier banks. President. has won The Asian Banker's ’Best Retail Bank in India’ award this year. CAMPCO Ltd. NH 17. Padmanabha.and 1165th in the South overall. With the introduction of "Faster ATMs" an HDFC Bank customer can. Gulf and Central Asian regions Mumbai. 118 . Country Head . The customers can also do other transactions on the ATM like credit card payment. The Bank also emerged best in the “Automobile Lending” sector. Rahul Bhagat. at any time of the day. transfer funds between accounts. It is a matter of great satisfaction for us that we have 4. Gulf Cooperation Council (GCC) and Central Asia on a range of parameters.000 such ATMs in service today and will continue to expand in future.." “Best Retail Bank” The Asian Banker declares HDFC Bank the “Best Retail Bank” in India Ø HDFC Bank wins for the 4th year in a row Ø More than 130 retail financial institutions participated from 22 countries across the Asia Pacific. K. Speaking on the occasion Mr. March 29.

competitive and profitable over a period of time.” The Asian Banker Excellence in Retail Financial Services Programme was instituted in 2001 on the premise that an outstanding player in the retail financial services industry should build business franchises that are sustainable. the publication has observed in its communication to the company.Some of the parameters that winners were measured on: Ø Outstanding annual performance of the retail banking unit Ø Sustainability as a franchise over a long period of time and across economic cycles Ø A well-defined franchise in the chosen marketplace Ø Transparency and accountability of business model Ø Ethical banking Ø Clear sales and execution skills at the product level Ø Rigorous risk management capabilities Ø Superior business and operational processes and technology Ø Strong penetration and efficiency of distribution channels Ø Focus on developing human resources to support the bank’s strategy Announcing the Asian Banker Excellence awards 2009. . ”HDFC Bank has passed all stringent screening and requirements throughout the Excellence in Retail Financial Services evaluation process and been granted the awards.First bank ever to retail silver bars in India HDFC Bank retails silver bars this Akshaya Tritiya 119 .

HDFC Bank is the first ever bank to sell silver bars in India after following the huge success in gold coins / bars. 2010: HDFC Bank. one of the premier banks in the country will retail into silver bars on the auspicious occasion of Akshaya Tritya this year. India. HDFC Bank will keep its branches functional on Akshaya Tritya which falls on Sunday this year to enable its customers and the public at large purchase gold and silver on this auspicious day. The launch provides Indian customers an easy and reliable way of buying silver. a popular investment option. The bank aims to sell a total of 100 to 150 kgs of the silver bars through 80-85 of its branches spread over 21 cities.” BIBLIOGRAPHY BOOKS REFFERED: 120 . said.99% Assay certification. even today is amongst the highest consumers of Silver in the world. Mr. Through the „Pure Silver‟ offer we hope to provide customers a convenient and reliable way of purchasing silver. Seshan Ramakrishnan. HDFC Bank ”Pure Silver‟ bars will be imported from Switzerland. In fact. Last year it sold around 440kgs gold during Akshaya Tritya. signifying highest level of purity as per international industry standards. May 13.Mumbai. The bank is one of the leading players as far as gold is concerned. without any worries about the purity of the item purchased. Each bar weighing 50gms will carry a 99. Silver has been traditionally the most favoured form of investment for Indians next to gold. Retail Liabilities Product Group. “We have always endeavored to provide a variety of secured investment and saving products to our customers. Head.

com www.rbi.com • www.Bandgar • Research Methodology – C.com • • • www.wikipedia.nyse.in REPORTS/ARTICLES REFFERED: • Annual report of HDFC BANK 2010 121 .hdfcbank.in www.Kothari WEBSITES REFFERED: • www.R.• Management Accounting – Chaudhary & Chopde • Principles of Banking .google.co.

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