Introduction

The monetary system of a country is a critical tool for development of the country, as it helps in making
of riches by connecting reserve funds with speculations. It encourages the stream of assets structure the
family units (savers) to business firms (financial specialists) to help in riches creation and improvement
of both the gatherings.

The monetary system of our nation is concerned with:

 Allocation of savings
 Provision of funds
 Straighten out the way for the financial transactions.
 Developing financial markets
 Provision of legal financial framework
 Provision of financial and advisory services

As indicated by Robinson, the essential capacity of money related framework is “to give a connection
among reserve funds and venture for formation of riches and to allow portfolio alteration in the
structure of existing riches”
A financial system involves diverse budgetary Institutions, Financial Markets, Financial Transactions,
standards and rules, liabilities and cases, etc.
A Financial system comprises of different budgetary Institutions, Financial markets, Financial
Transactions, principles and guidelines, liabilities and cases and so forth.

Highlights of Financial System:

 It assumes an indispensable job in monetary advancement of a nation

 It empowers the two reserve funds and venture

 It joins savers and speculators

 It helps in capital arrangement

 It helps in designation of hazard

 It encourages development of money related market

 It helps in Financial depending and Broadening

1
 Components of Indian Financial System

Private Bank
Commercial
Banks
Public Bank
Co-operative
Banking Banks
Financial Institutions Regional Rural
Institutions Non-Banking Banks
Institutions Foreign
Financial
Assets/instrument Banks
s Leasing,Hire Purchase ,Consumer Credit ,Bill
Financial Discounting ,Factoring,Insurance,etc
System Fund Based
Service Issue Management ,Merchant banking ,Credit
Financial Services Rating , Debt Restrucring Stock Stock Broking
Fee-Bases etc
Service
Unorgainize Secondary
d Capital Market
Financial Markets
Market
Organized Primary Market
Money
Market

1)Financial Institutions-Financial Foundations are the connection of money related markets that
encourage. The budgetary exchanges among people and monetary clients. It basically implies an
affiliation (set-up for Advantage) that accumulates money from individuals and puts that money in
budgetary assets, for Instance, stocks, securities, bank stores, progresses, etc and wins money out of the
cash related trade.

(2) There can be 2 kinds of financial organization:

 Banking institutions or depository institutions- these are banks and credit associations that
gather cash from people in general as an end-result of enthusiasm on cash stores and utilize that
cash to propel advances to money related clients. Also, give the profits to the clients.
 Non-banking establishments or non – store foundations – these are Brokerage firms, insurance
and basic backings associations that can’t assemble. Money stores anyway can pitch fiscal things
to can related customers.
2
 Financial Institutions

There are 3 categories:

 Regulatory – It incorporates establishments like SEBI,RBI ,IRDA and so on which direct the
budgetary markets and ensure the premiums of speculators the supplier of the money related
administration.

 Intermediaries- It incorporates mechanical banks like SBI,PNB and so on that give transient
advances and other money related administrations to people and corporate clients.

 Non- Intermediaries – It incorporates money related foundations like NABARD, IDBI and so on
that give long haul advances to corporate clients.

Indian banking system

3
Banking system in Indian: In India, the Reserve Bank is the focal financial organization. The RBI controls
and works the financial framework in India. It manages and directs trade control and banking guidelines
and oversees the administration’s money related strategy .The financial framework in India work as
indicated by the rules issued by the RBI.

The monetary part is the lifeline of the front line economy. The banks accept a basic occupation
inactivation of stores and installment of credit to various regions of the economy. A bank is a financial
foundation whose Explanation behind existing is to get stores and advances money to individuals and
associations, apportion portions, place resources in securities for returns, and ensure money. Its
organizations speculation assets and current records, offers acknowledge to borrowers as advances and
through charge cards and goes about as trustees of its clients.

India has an extensive banking network. The banking system in India has four tiers:

 Scheduled commercials banks: A scheduled bank in India refers to the bank which is listed in
the second schedule of the reserve bank of India act, 1934.Scheduled banks are usually private
sector banks, foreign banks and nationalized banks operating in India.

 Regional rural banks: These banks are also called Garmin banks. These are Indian scheduled
banks operating in rural areas. These banks were created to provide basic banking and financial
services in rural areas. However, their areas of operation include urban areas as well.

 Co-operative banks: These banksmainly lend to small business groups and provide finance to
the agriculture sector. They are located in rural, urban and semi-urban areas as well.

 Payment banks and small finance banks: These are newly modelled small finance banks
framed by the RBI. There are 11 payment banks and 10 small finance banks that operate in India.
These are sewage banks that are aimed at strengthening the existing channel of APY distribution
and provides a boost to the outreach of subscribers under APY (Atal Pension Yojana)

4
 Types of banks in India:

There are different types of banks in India are as follows:

 Commercial banks: business banks are the benefit making foundations and are a standout
amongst the most imperative sorts of banks. They gather stores from people in general and
loan cash to business firms, brokers, branches and customers.
Business banks meet the working capitals needs of exchange and industry and are a piece of
the currency show here.

 Development bank: They are particular monetary organizations which supply long haul
money to substantial and medium ventures. They likewise perform different limited time
exercises for quickening the rate of capital development in the nation. These banks advance
modern and financial improvement.

 Co-operative banks: The co-operative banks are gone for giving credit to essential
horticulture credit social orders at lower loan less.

 Land development banks: These banks for the most part support the rural area and give
long haul credit to branches for land improvement or for gaining new land.

 Investment banks: At the point when a corporate element needs to issues new value or
Obligation securities, a speculation bank serves the job of a middle person. In some cases, a
speculation is made in these organisations through buy of value shares.

 Merchant banks: A dealer bank enables an organization to sell its new offers in the securities
exchange to the overall population and help raise assets for the organization.

 Foreign banks: As the name prescribes these are non-Indian banks. An outside bank is
focused on seeking after the rules of both the country of birth-place and the host country
.Right now; there are 45 outside banks working in India.

 Central banks: The RBI acts as the central regulatory bank of India. It controls the entire
banking system of the country.

5
 Structure of Indian banking systems

A bank is an establishment that gives essential financial administrations like tolerating stores and giving
credits. The structure of Indian financial framework is given beneath.

RBI: The reserve bank supervises. Control and manages the movement of the financial area. The Reserve
bank of India is the currency issuing authority of the country.

The main functions of the RBI are given below:

 Welfare of people in general

 To keep up the money related strength of the nation.
 To execute the money related exchange securely and viably.
 To build up the money related foundation of the nation.
 To assign the assets viably with no favouritism

 Scheduled commercial bank: Among the banks, the business banks are one of the most
seasoned in the Nation. There are two sub kinds of business banks dependent on possession and
authority over administration.

They are:

 Public sector banks: The public sector banks are where the government owns either 50% or
more stake .Currently there are 27 commercial public sector banks operating in India.
 Public sector banks: The private area banks are the place most of stake is held by the investors
of the bank. Currently there are 15 private sector banks operating in India.
 Non- scheduled banks: The non-scheduled bank refers to the banks which are not listed in the
second schedule of the RBI. The banks are required to keep up money save necessities not with
RBI but rather with themselves. There are only 4 non-scheduled commercial banks operating in
India.
 Foreign banks: The foreign banks obtain a license from RBI to operate in India. These banks
besides financing foreign trade of the country, undertake normal banking business as well.
Currently there are 45 foreign banks operating in India.
 Co-operative banks: These banks are government sponsored, government supported and
government subsidized financial agencies in India. Unlike commercial banks which focus on
profit, cooperative banks are organized and managed on principles of Cooperation, self- help and
mutual help.

6
  List of Top 10 Private Banks in India

1. HDFC Bank
2. ICICI Bank
3. Axis
4. Kotak Mahindra Bank
5. YES Bank
6. Federal Bank
7. Induslnd Bank
8. RBL Bank
9. KarurVysya Bank
10. Bandhan Bank

 List of Top 10 Public Banks in India

1. State Bank of India

2. Bank of Baroda
3. Punjab National Bank
4. Canara Bank
5. Bank of India
6. Union Bank of India
7. Central Bank of India (CBI)
8. IDBI Bank
9. Syndicate Bank
10. Indian Bank

7
 Introduction to HDFC BANK

HDFC Bank (Housing Development Finance Corporation Limited) was established in 1994, with its

headquarters in Mumbai, Maharashtra. It is the number one ranked private banks in India, which does

not just provide withdraw facility and deposits. It also provides FOREX services, loans, credit cards,

insurance policies, and premium banking features. Its services are dispensed by competent employees

who are hired through various competitive examinations.

HDFC Bank Ltd is one of India's premier banks. Headquartered in Mumbai HDFC Bank is a new

generation private sector bank providing a wide range of banking services covering commercial and

investment banking on the wholesale side and transactional/branch banking on the retail side. As of 30

September 2017 the bank's distribution network was at 4729 branches and 12259 ATMs across 2669

cities and towns. HDFC Bank also has one overseas wholesale banking branch in Bahrain a branch in

Hong Kong and two representative offices in UAE and Kenya.

The Bank has two subsidiary companies namely HDFC Securities Ltd and HDB Financial Services Ltd.The

Bank has three primary business segments namely banking wholesale banking and treasury. The retail

banking segment serves retail customers through a branch network and other delivery channels. This

segment raises deposits from customers and makes loans and provides other services with the help of

specialist product groups to such customers. The wholesale banking segment provides loans non-fund

facilities and transaction services to corporate public sector units government bodies financial

institutions and medium-scale enterprises. The treasury segment includes net interest earnings on

investments portfolio of the Bank. The Bank's ATM network can be accessed by all domestic and

8
international Visa/MasterCard Visa Electron/Maestro Plus/Cirrus and American Express Credit/Charge

cardholders. The Bank's shares are listed on the Bombay Stock Exchange Limited and The National Stock

Exchange of India Ltd. The Bank's American Depository Shares (ADS) are listed on the New York Stock

Exchange (NYSE) and the Bank's Global Depository Receipts (GDRs) are listed on Luxembourg Stock

Exchange.HDFC Bank Ltd Was incorporated on August 30 1994 by Housing Development Finance

Corporation Ltd. In the year 1994 Housing Development Finance Corporation Ltd was amongst the first

to receive an 'in principle' approval from the Reserve Bank of India to set up a bank in the private sector

as part of the RBI's liberalization of the Indian Banking Industry. HDFC Bank commenced operations as a

Scheduled Commercial Bank in January 1995. Ramon House Church gate branch was inaugurated on 16

January 1995 as the first branch of the bank.

In March 1995 HDFC Bank launched Rs 50-crore initial public offer (IPO) (5 crore equity shares at Rs 10

each at par) eliciting a record 55 times oversubscription. HDFC Bank was listed on the Bombay Stock

Exchange on 19 May 1995. The bank was listed on the National Stock Exchange on 8 November 1995.In

the year 1996 the Bank was appointed as the clearing bank by the NSCCL. In the year 1997 the launched

retail investment advisory services. In the year 1998 they launched their first retail lending product

Loans against Shares. In the year 1999 the Bank launched online real-time Net Banking. In February

2000 Times Bank Ltd owned by Bennett Coleman & Co. / Times Group amalgamated with the Bank Ltd.

This was the first merger of two new generation private banks in India. The Bank was the first Bank to

launch an International Debit Card in association with VISA (Visa Electron). In the year 2001 they started

their Credit Card business. Also they became the first private sector bank to be authorized by the Central

Board of Direct Taxes (CBDT) as well as the RBI to accept direct taxes. During the year the Bank made a

strategic tie-up with a Bangalore-based business solutions software developer Tally Solutions Pvt Ltd for

developing and offering products and services facilitating on-line accounting and banking services to

SMEs.

On 20 July 2001 HDFC Bank's American depositary receipt (ADR) was listed on the New York Stock

9
Exchange under the symbol HDB. Also they made the alliance with LIC for providing online payment of

insurance premium to the customers. During the year 2002-03 the Bank increased the number of

branches from 171 No’s to 231 No’s and the size of the Bank's ATM network expanded from 479 No’s to

732 Nos. They also expanded their presence in the 'merchant acquiring' business. During the year 2003-

04 the Bank expanded the distribution network with the number of branches increased from 231 Nos to

312 Nos and the size of the Bank's ATM network increased from 732 Nos to 910 Nos. In September 2003

they entered the housing loan business through an arrangement with HDFC Ltd whereby they sell HDFC

Home Loan product.

During the year 2004-05 the Bank expanded the distribution network with the number of branches

increased from 312 Nos to 467 Nos and the size of the Bank's ATM network increased from 910 Nos to

1147 Nos. During the year 2005-06 the Bank launched the 'no-frills account' a basic savings account

offering to the customer. Also the distribution network was expanded with the number of branches

increased from 467 Nos (in 211 cities) to 535 Nos (in 228 cities) and the number of ATMs from 1147 Nos

to 1323 Nos.During the year 2006-07 the distribution network was expanded with the number of

branches increased from 535 Nos (in 228 cities) to 684 Nos (in 316 cities) and the number of ATMs from

1323 Nos to 1605 Nos.

They commenced direct lending to Self Help Groups. Also they opened a dedicated branch for lending to

SHGs in Thudiyalur village (Tamil Nadu). In September 28 2005 the Bank increased their stake in HDFC

Securities Ltd from 29.5% to 55%. Consequently HDFC Securities Ltd became a subsidiary of the Bank.

During the year 2007-08 the Bank added 77 Nos new branches take the total to 761 Nos branches. Also

372 Nos new ATMs were also added taking the size of the ATM network from 1605 Nos to 1977 Nos.

HDB Financial Services Ltd became a subsidiary company with effect from August 31 2007. In June 2

2007 the Bank opened 19 branches in a day in Delhi and the National Capital Region (NCR).During the

year 2008-09 the Bank expanded their distribution network from 761 branches in 327 cities to 1412

branches in 528 Indian cities. The Bank's ATMs increased from 1977 to 3295 during the year.

10
As per the scheme of amalgamation Centurion Bank of Punjab Ltd was amalgamated with the Bank with

effect from May 23 2008. The appointed date for the merger was April 01 2008. The amalgamation added

significant value to HDFC Bank in terms of increased branch network geographic reach and customer

base and a bigger pool of skilled manpower.

In October 2008 the bank opened their first overseas commercial branch in Bahrain. The branch offers

the bank's suite of banking services including treasury and trade finance products for corporate clients

and wealth management products for Non-resident Indians. During the year 2009-10 the Bank expanded

their distribution network from 1412 branches in 528 cities to 1725 branches in 779 cities. The Bank's

ATMs increased from 3295 Nos to 4232 Nos during the year. During the year 2010-11 the Bank

expanded their distribution network from 1725 branches in 779 cities to 1986 branches in 996 Indian

cities. The Bank's ATMs increased from 4232 to 5471 Nos. In the year 2014 HDFC Bank lunched the

missed call banking service allowing customers to use banking services without having to visit the Bank

or connect online.

On 16 June 2015 HDFC Bank launched the 10-second personal loan approval service thereby becoming

the first in the retail lending space to fully automate the process of loan approval and disbursement. In

2016 HDFC Bank introduced loans at ATMs as the country's first innovation to turn ATMs into Loan

Dispensing Machines (LDMs) further extending the functionality of the Bank's ATMs.

11
Shareholding belonging to the category:

"Public and holding more than 1% of the Total No. of Shares"

Shares as % of Total
No. Name of the Shareholder
No. of Shares
1 Non-Resident Indian (NRI) 0.1
2 Qualified Institutional Buyer 3.39
3 Life Insurance Coporation of India 2.75
4 Europacific Growth Fund 4.77
5 SBI-ETF Nifty 50 3.2
HDFC TRUSTEE COMPANY LTD - A/C HDFC HYBRID
6 1.36
EQUITY FUND
7 Government of Singapore 1.28
8 NRI Non Rept 0.32
9 Trusts 0.56
10 Overseas corporate bodies 0
11 Foreign Nationals 0
12 Clearing Members 0.12
13 Bodies Corporate 2.44
14 Unclaimed or Suspense or Escrow Account 0
15 IEPF 0.16

12
 STATE BANK OF INDIA

The State Bank of India (SBI) is an Indian multinational, public sector banking and financial
services statutory body. It is a government corporation statutory body headquartered
in Mumbai, Maharashtra. SBI is ranked as 236th in the Fortune Global 500 list of the world's
biggest corporations of 2019.[5] It is the largest bank in India with a 23% market share in assets,
besides a share of one-fourth of the total loan and deposits market.
The bank descends from the Bank of Calcutta, founded in 1806, via the Imperial Bank of India,
making it the oldest commercial bank in the Indian subcontinent. The Bank of Madras merged
into the other two "presidency banks" in British India, the Bank of Calcutta and the Bank of
Bombay, to form the Imperial Bank of India, which in turn became the State Bank of India in
1955. The Government of India took control of the Imperial Bank of India in 1955, with Reserve
Bank of India (India's central bank) taking a 60% stake, renaming it the State Bank of India.
The roots of the State Bank of India lie in the first decade of the 19th century when the Bank of
Calcutta later renamed the Bank of Bengal, was established on 2 June 1806. The Bank of Bengal
was one of three Presidency banks, the other two being the Bank of Bombay (incorporated on 15
April 1840) and the Bank of Madras (incorporated on 1 July 1843).
All three Presidency banks were incorporated as joint stock companies and were the result
of royal charters. These three banks received the exclusive right to issue paper currency till 1861
when, with the Paper Currency Act, the right was taken over by the Government of India. The

13
Presidency banks amalgamated on 27 January 1921, and the re-organised banking entity took as
its name Imperial Bank of India. The Imperial Bank of India remained a joint stock company but
without Government participation.

Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of India,
which is India's central bank, acquired a controlling interest in the Imperial Bank of India. On 1
July 1955, the Imperial Bank of India became the State Bank of India. In 2008, the Government of
India acquired the Reserve Bank of India's stake in SBI so as to remove any conflict of interest
because the RBI is the country's banking regulatory authority.
In 1959, the government passed the State Bank of India (Subsidiary Banks) Act. This made eight
banks that had belonged to princely states into subsidiaries of SBI. This was at the time of the
first Five Year Plan, which prioritised the development of rural India. The government integrated
these banks into the State Bank of India system to expand its rural outreach. In 1963 SBI merged
State Bank of Jaipur (est. 1943) and State Bank of Bikaner (est.1944).
SBI has acquired local banks in rescues. The first was the Bank of Bihar (est. 1911), which SBI
acquired in 1969, together with its 28 branches. The next year SBI acquired National Bank of
Lahore (est. 1942), which had 24 branches. Five years later, in 1975, SBI acquired
KrishnaramBaldeo Bank, which had been established in 1916 in Gwalior State, under the
patronage of Maharaja Madho Rao Scindia. The bank had been the DukanPichadi, a small
moneylender, owned by the Maharaja. The new bank's first manager was Jall N. Broacha, a Parsi.
In 1985, SBI acquired the Bank of Cochin in Kerala, which had 120 branches. SBI was the
acquirer as its affiliate, the State Bank of Travancore, already had an extensive network in Kerala.
There was, even before it actually happened, a proposal to merge all the associate banks into SBI
to create a single very large bank and streamline operations.
The first step towards unification occurred on 13 August 2008 when State Bank of
Saurashtra merged with SBI, reducing the number of associate state banks from seven to six. On
19 June 2009, the SBI board approved the absorption of State Bank of Indore, in which SBI held
%. (Individuals who held the shares prior to its takeover by the government held the
balance of 1.7 %.)
The acquisition of State Bank of Indore added 470 branches to SBI's existing network of
branches. Also, following the acquisition, SBI's total assets approached ₹10 trillion. The total
assets of SBI and the State Bank of Indore were ₹9,981,190 million as of March 2009. The

14
process of merging of State Bank of Indore was completed by April 2010, and the SBI Indore
branches started functioning as SBI branches on 26 August 2010.

 On 7 October 2013, Arundhati Bhattacharya became the first woman to be appointed

Chairperson of the bank. Mrs. Bhattacharya received an extension of two years of service to

 merge into SBI the five remaining associate banks.SBI was ranked 216th in the Fortune
Global 500

rankings of the world's biggest corporations for the year 2018.

 SBI was 50th most trusted brand in India as per the Brand Trust Report 2013, an annual

study conducted by Trust Research Advisory, a brand analytics company and subsequently, in

the Brand Trust Report 2014, SBI finished as India's 19th most trusted brand in India

15
Shareholding belonging to the category:

"Public and holding more than 1% of the Total No. of Shares"

Shares as % of Total No.

No. Name of the Shareholder
of Shares

1 Bodies Corporate 0.7

2 LIFE INSURANCWE CORPORATION OF INDIA P&GS FUND 9.25
3 HDFC TRUSTEE COMPANY A/C HDFC TOP 100 FUND 3.39
Reliance Capital Trustee Company Limited A/C Reliance
4 1.73
Vision Fund
5 Non-Resident Indian (NRI) 0.13
6 SBI-ETF NIFTY BANK 2.16
7 Non Resident Non Repatriates’ 0.08
8 Overseas corporate bodies 0
9 ICICI PRUDENTIAL VALUE FUND-SERIES 9 2.04
10 Foreign Individuals 0
11 Trusts 0.75
12 Foreign Portfolio Investor (individual) 0
13 Clearing Members 0.1
14 Foreign Body 0
15 Unclaimed or Suspense or Escrow Account 0

16
  Non-banking subsidiaries

Apart from five of its associate banks (merged with SBI since 1 April 2017), SBI's non-banking
subsidiaries include:

 SBI Capital Markets Ltd

 SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)
 SBI Life Insurance Company Limited
In March 2001, SBI (with 74% of the total capital), joined with BNP Paribas (with 26% of the remaining
capital), to form a joint venture life insurance company named SBI Life Insurance company Ltd.

17
 ABSTRACT

HDFC Bank is the second largest private sector bank in the country (after ICICI Bank) in terms of asset

size. The bank has tripled its share from 1.2% of total non-food credit in FY02 to 4.2% in FY12. Retail

assets constituted 51.3% of advances in FY12. Its group companies, HDFC Standard Life (insurance), HDFC

AMC (mutual funds) and HDFC Securities (equities) add scalability to the bank's offerings.

SBI is India's largest bank in the country with an asset size of over Rs 13 trillion. Although the bank's loan book is

largely skewed towards corporate (large, mid and small) loans (50% of total advances in FY12), the retail side is

also fast catching up. SBI has a network of almost 14,270 branches and over 22,141 ATMs across the country.

The State Bank of India (SBI) is an Indian multinational, public sector banking and financial
services statutory body. It is a government corporation statutory body headquartered
in Mumbai, Maharashtra. SBI is ranked as 236th in the Fortune Global 500 list of the world's

biggest corporations of 2019.[5] It is the largest bank in India with a 23% market share in assets,

besides a share of one-fourth of the total loan and deposits market.

The bank descends from the Bank of Calcutta, founded in 1806, via the Imperial Bank of India,
making it the oldest commercial bank in the Indian subcontinent. The Bank of Madras merged
into the other two "presidency banks" in British India, the Bank of Calcutta and the Bank of
Bombay, to form the Imperial Bank of India, which in turn became the State Bank of India in
1955. The Government of India took control of the Imperial Bank of India in 1955, with Reserve Bank of
India (India's central bank) taking a 60% stake, renaming it the State Bank of India.
The roots of the State Bank of India lie in the first decade of the 19th century when the Bank of Calcutta
later renamed the Bank of Bengal, was established on 2 June 1806. The Bank of Bengal
was one of three Presidency banks, the other two being the Bank of Bombay (incorporated on 15 April
1840) and the Bank of Madras (incorporated on 1 July 1843).

All three Presidency banks were incorporated as joint stock companies and were the result
of royal charters.

18
 RESEARCH METHODOLOGY

Objective of the study

 To study and compare products offered by HDFC and State bank of India.

 To study and compare revenue statement of HDFC and State bank of India.

 To Study and Compare Balance sheet statement of HDFC and State bank of India.

 To study the growth of HDFC and State bank of India.

 To study and Compare customer satisfaction of HDFC and State bank of India.

 To study and compare SWOT Analysis of both the companies.

19
 Scope of the study

 The study deals in brief to evaluate and analyse various aspects of company‘s financial
position, liquidity position, so as to present a clear picture of performance.

 Also, the study enables customer satisfaction.

 A study like this would help the organization to make decisions based on the current
performance.

20
 REVIEW OF LITERATURE
 Satisfaction means a sense of preference because one has something or has attained somewhat. It
is an act of satisfying an essential, wish, request or hope. Every rationale client associates the cost
(price) and profit (utility) of any product or Amenities. Clients compare their opportunities about
precise product/services and its real benefits.

 This comparison results into 3 kinds of customers:

Disgruntled Customers (expectations-are quite actual performance of the service);

 Happy Customers (actual edges accomplished from services are equal to or more than
expectations);

 Indifferent customers (actual performance and expectation are exactly equal).

 Westbrook (1981) reported that overall satisfaction is that the outcome of customer’s evaluation
of a collection of experiences that square measure connected with the particular service supplier.
It is discovered that organisation’s concentration on client expectations resulted into greater
Satisfaction(Peters and Waterman,1982)

 Kolter (2000) outlined satisfaction as a person’s feelings of delight or disappointment resulting

from the comparison of product’s perceived performance in reference to expectation. Customer’s
feelings and Beliefs also affect their satisfaction level.

 It’s aforementioned that satisfaction could be a perform of Customers belief regarding honest
treatment (Hunt, 1991).client satisfaction has become vital because of enhanced competition
because it is considered important consider the determination of bank’s aggressiveness (Bartell,
1993; Haron et al .1994).

 Satisfaction could be a post purchase critical judgement related to a particular purchase decision
(Churchill and Supernant ,1992).

 The customer satisfaction is an indispensable for the successful survival of any organisation.
Continuous measurement of satisfaction level is necessary in systematic manner (Chakravarty
etal.1996 ; Chit wood,1996;Romano and sanfillipo,1996)

 Consumer loyalty in banking: money related progression and deregulating has improved the
challenge among banks to pull in potential clients.

 Each broker endeavours to give better administration than keep fulfilled clients.
21
 Fulfilled customer is that the genuine quality for any association that guarantees semi
permanent benefit even in the time of extraordinary challenge.

22
 Data Collection, Data Analysis and
Data Comparison

 To study and compare products offered by HDFC and State bank of India

HDFC Bank State bank of India

HDFC business Loan Business Loan

HDFC Bank Car Loan Car Loan

HDFC Bank Debit Card Debit Card

HDFC Bank Credit Card Credit Card

HDFC Bank Education Loan Education Loan

HDFC Bank Fixed Deposit Fixed Deposit

HDFC Bank Gold Loan Gold Loan

HDFC Bank Home Loan Home Loan

HDFC Bank Personal Loan Personal Loan

23
Analysis of Financial Products and Services offered by HDFC and SBI
Product HDFC SBI
Saving  Savings Max A/c
Account  Regular Saving A/c
 Women’s Saving A/c
 Kids advantage A/c
 Senior Citizens A/c
 Family Savings Group
A/c
 Basic Saving Bank
deposit A/c
 Institutional Saving
A/c
 BSBDA Small A/c
Deposit Regular fixed deposit
Account Scheme
 Overdraft Against
FD Scheme
 Sweep in facility
 5-Years Tax saving
Fixed Deposit
Cards  Millennia Cards
 Credit Cards
 Debit Cards
 Pre paid Cards
 Forex Cards
 Commercial Credit
Cards
Comparison
 Yuva Savings HDFC bank has 9 different
A/c kinds of savings A/c. On the
 Basic Savings other hand SBI has 4 type of
A/c savings A/c.
 Small Savings
A/c
 Savings A/c for
Minus
 SBI Term  The Minimum amount
Deposit of Deposit required in
 SBI Tax savings SBI is 1000rs
Scheme,2006
 SBI Multi option  The Minimum amount
Deposit scheme of deposit to be made
 Reinvestment into HDFC bank for
Plan Opening these
accounts ID Rs.10,000
for metro urban
branches Rs. 5,000 For
Semi urban branches
Rs. 2,500 for Rural
branches
 Travel Forex  There are 10 type of
cards debit card that SBI
 Pre paid cards provides whereas
 Gift Cards there are only 5 cards
 Credit Cards that HDFC provides
 Debit Cards
 Transactions limits for
SBI is
Rs.1,00,000 and HDFC
is Rs.70,000
 Daily Cash Withdrawal
for debit cards
24
 Rs.25,000 in case of
HDFC and in case of
SBI the limit is
Rs.40,000

Loans Personal Loan SBI Saral Personal  The Rate of Interest at

Loan HDFC Bank is around
10.75% to 22%

 The Rate of Interest at

SBI Bank is 12.50% to
16.60%

Home Loan Home loan  The Rate of Interest at

HDFC Bank is around
8.25% to 9.70%

 The Rate of Interest at

SBI Bank is 8.05% to
8.95%

Business Growth Loan Business laon  The Rate of Interest

at HDFC Bank is
15.65% for the
Business Growth .

 At interest rate of
11.20% per annum in
State Bank of India.
Two wheeler Loan  The Rate of Interest at
HDFC Bank is 14.03%
to 27.53% for super
Bike & Two wheeler.
Three Wheeler Loan  Get up to 90% finance
on three-wheeler loan
and repay the money
at attractive rates
 The Rate of Interest at
HDFC is around
14.03% to 27.53%

25
Car Loan Car Loan  As per current interest
rates, HDFC car loan
interest rates are in the
range of 9.25 % to
10.00%
 Lowest car loan
interest rate currently
offered by SBI is 8.70%

Rural Home Loan  The base rate currently

stands at 9.70% and
generally, banks
and home financing
companies offer a
floating interest rate of
9.75% for rural home
loans.

Easy EMI Consumer  Easy EMI Consumer

Loan Loan rate of Interest is
10.75% to 22% by
HDFC

SBI Xpress Credit  The SBI Xpress Credit

Personal Loan Personal Loan (rate of
interest is 11.55% to
12.05%)
SBI Pension Loan  The SBI provide the
Pension Loan and rate
of Interest is 11.60 pa.

Jai Jawan Pension  The rate of Interest at

Loan SBI is around 11.20%
to 12.50%.

PM Mudra Yojana  The rate of Interest is

10.99% to 20.70%

 Maximum INR 15 lakhs

Gold Loan Gold Loan  HDFC Bank offers one

of lowest gold loan
rate of 10.50%
(Private Banks)

 The bank's one-year

26
 MCLR stands at 8.5%
with effect from 10
April 2019, according
to the bank's website.
It means an interest
rate of 9.75% is
applicable for
the SBI personal gold
loan scheme. SBI charg
es 0.50% of
the loan amount and
minimum Rs.500
(applicable GST on
both) as processing
fees for the gold loans.

27
HDFC Balance sheet As at March 31, 2019 in ‘000
As at As at
Schedule 31-Mar-19 31-Mar-18
CAPITAL AND LIABILITIES
Capital 1 5,446,613 5,190,181
Reserves and 2 1,486,616,908 1,057,759,776
surplus Deposits 3
9,231,409,284 7,887,706,396
Borrowings 4
1,170,851,238 1,231,049,700
Other liabilities and provisions 5
551,082,863 457,637,181
Total
12,445,406,906 10,639,343,234

ASSETS
Cash and balances with Reserve Bank of India 6
467,636,184 1,046,704,730
Balances with banks and money at call and 7
345,840,208 182,446,097
shortnotice Investments 8
2,905,878,784 2,422,002,416
Advance 9
8,194,012,167 6,583,330,908
s Fixed 10
40,300,043 36,072,045
assets 11
491,739,520 368,787,038
Other Total
12,445,406,906 10,639,343,234
assets
12
10,247,151,183 8,754,882,292
499,528,010 427,538,250
Contingent
liabilities Bills for 17 & 18
collection

Significant accounting policies and notes to the financial statements

The schedules referred to above form an integral part of the Balance
Sheet.

As per our report of even date. For and on behalf of the Board

For S. R. BATLIBOI & CO. LLP Shyamala Gopinath Aditya Puri Keki Mistry
Chartered Accountants Chairperson Managing Director Malay Patel
Firm Registration No. 301003E/E300005
Umesh Sarangi
Sanjiv Sachar
Sandeep Parekh
per Sudhir Soni Kaizad Bharucha
M D Ranganath
Partner Executive Director
Membership No.: 41870 Directors

Santosh Haldankar Sashidhar Jagdishan

Vice President (Legal) Chief Financial Officer
Mumbai, April 20, 2019 & Company Secretary
28
 ` in ‘000

As at As at
31- 31-
SCHEDULE 1 - CAPITAL Mar-19 Mar-18
Authorised capital
3,25,00,00,000 (31 March, 2018: 3,25,00,00,000) Equity Shares of ` 2/-each
Issued, subscribed and paid-up capital 6,500,0 6,500,0
00 00
2,72,33,06,610 (31 March, 2018: 2,59,50,90,267) Equity Shares of ` 2/- each
Total
5,446,613 5,190,181
SCHEDULE 2 - RESERVES AND SURPLUS
5,446,613 5,190,181
I Statutory reserve
Opening balance
Additions during theyear
227,475,6 183,758,8
Total 79 58
II General reserve 52,695,4 43,716,8
Opening balance 13 21
Additions during theyear 280,171,092 227,475,679
Total
89,155,8 71,669,1
III Balance in profit and loss account 78 50
21,078,1 17,486,7
65 28
IV Share premium
110,234,043 89,155,878
Opening balance
Additions during the year
492,233,022 404,534,155
Deductions during the year [Refer Schedule 18 (4)]
Total
V Amalgamation reserve
311,457,3 284,263,301
Opening balance 10 27,194,009
Additions during the year 258,910,7 -
Total 28
VI Capital reserve (1,262,85
Opening balance 8)
Additions during the year 569,105,180 311,457,310
Total
VII Investment reserve account 10,635,564 10,635,564
Opening balance - -
Additions during the year 10,635,564 10,635,564
Deductions during the year
Total 14,355,9 12,000,6
10 83
VIII Investment fluctuation reserve
1,053,3 2,355,2
Opening balance
54 27
Additions during the year 15,409,264 14,355,910
Total
IX Foreign currency translation account - 442,018
162,297 45,086
Opening balance (162,237) (487,104)
Additions / (deductions) during the year
Total - -
Total

29
 ` in ‘000

As at As at
31-Mar-19 31-Mar-18
SCHEDULE 3 - DEPOSITS
A I Demand deposits
(i) From banks 34,189,112 27,237,788
(ii) From others 1,390,788,586 1,165,587,962
Total 1,424,977,698 1,192,825,750
II Savings bank deposits 2,487,003,765 2,238,102,098
III Term deposits
(i) From banks 60,287,319 72,775,645
(ii) From others 5,259,140,502 4,384,002,903
Total 5,319,427,821 4,456,778,548
Total
9,231,409,284 7,887,706,396

B I Deposits of branches in India 9,173,767,517 7,847,886,299

II Deposits of branches outside India 57,641,767 39,820,097
Total
9,231,409,284 7,887,706,396

SCHEDULE 4 - BORROWINGS
I Borrowings in India
(i) Reserve Bank of India 174,000,000 138,000,000
(ii) Other banks 9,155,858 47,848,399
(iii) Other institutions and agencies 278,316,800 342,299,500
(iv) Upper and lower tier II capital and innovative perpetual debts 182,320,000 211,070,000
(v) Bonds and Debentures (excluding subordinated debt)
186,750,000 126,750,000
Total
830,542,658 865,967,899
II Borrowings outside India
340,308,580 365,081,801
Total
1,170,851,238 1,231,049,700
Secured borrowings included in I and II above: Nil (March 31, 2018: Nil) other than borrowings of ` 17,400.00
crore (March 31, 2018: ` 14,239.95 crore) under Collateralised Borrowing and Lending Obligation and
transactions under Liquidity Adjustment Facility and Marginal Standing Facility.

I Bills payable
II Interest accrued 70,403,952 82,217,908
III Others (including provisions) 69,509,400 56,278,541
IV Contingent provisions against standard assets 374,772,935 289,244,562
36,396,576 29,896,170
551,082,863 457,637,181

30
 ` in ‘000

As at As at
31-Mar-19 31-Mar-18
SCHEDULE 6 - CASH AND BALANCES WITH RESERVE BANK OF INDIA
I Cash in hand (including foreign currency notes) 73,914,902 75,323,281
II Balances with Reserve Bank of India:
(a) In current accounts 391,721,282 364,381,449
(b) In other accounts 2,000,000 607,000,000
Total 393,721,282 971,381,449
Total
467,636,184 1,046,704,730
SCHEDULE 7 - BALANCES WITH BANKS AND MONEY AT CALL AND SHORT NOTICE
I In India
(i) Balances with banks:
(a) In current accounts 3,236,030 8,369,114
(b) In other deposit accounts 175,545 1,169,512
Total 3,411,575 9,538,626
(ii) Money at call and short notice:
(a) With banks 18,000,000 -
(b) With other institutions
77,213,500 45,018,623
Total
95,213,500 45,018,623
Total
98,625,075 54,557,249
II Outside India
(i) In current accounts
83,970,273 26,124,304
(ii) In deposit accounts
2,863,017 6,191,625
(iii) Money at call and short notice
160,381,843 95,572,919
Total
247,215,133 127,888,848
Total
345,840,208 182,446,097
SCHEDULE 8 - INVESTMENTS
A Investments in India in
(i) Government securities
2,396,593,098 1,883,648,036
(ii) Other approved securities
- -
(iii) Shares
3,980,968 1,197,947
(iv) Debentures and bonds
286,969,969 347,873,284
(v) Subsidiaries / joint ventures
38,264,875 38,264,875
(vi) Others (Units, CDs, CPs, PTCs and security receipts)
165,017,843 135,541,438
Total
2,890,826,753 2,406,525,580
B Investments outside India in
(i) Government securities (including Local Authorities)
7,236,612 4,218,786
(ii) Other investments
(a) Shares
35,024 28,375
(b) Debentures and bonds
7,780,395 11,229,675
Total
15,052,031 15,476,836
Total

31
 in ‘000

As at As at
31-Mar-19 31-Mar-18
SCHEDULE 9 - ADVANCES
A (i) Bills purchased and discounted 320,438,660 216,592,055
(ii) Cash credits, overdrafts and loans repayable on demand 2,022,142,263 1,681,643,640
(iii) Term loans 5,851,431,244 4,685,095,213
Total 8,194,012,167 6,583,330,908

B (i) Secured by tangible assets* 5,705,087,854 4,712,405,892

(ii) Covered by bank / government guarantees 278,716,962 191,682,760
(iii) Unsecured 2,210,207,351 1,679,242,256
Total 8,194,012,167 6,583,330,908
* Including advances against book debts

C I Advances in India
(i) Priority sector 2,174,223,445 1,728,666,886
(ii) Public sector 270,921,248 137,708,318
(iii) Banks 9,754,795 8,357,208
(iv) Others 5,489,286,340 4,505,343,473
Total 7,944,185,828 6,380,075,885
C I Advances outside India
(i) Due from banks 35,655,221 33,046,352
(ii) Due from others
860,526 1,052,278
(a) Bills purchased and discounted
16,686,474 18,265,990
(b) Syndicated loans
196,624,118 150,890,403
(c) Others
249,826,339 203,255,023
Total To
8,194,012,167 6,583,330,908

(Advances are net ofprovisions)

32
 ` in ‘000
As at As at
31-Mar-19 31-Mar-18
SCHEDULE 10 - FIXED ASSETS

A Premises (including land)

Gross block

At cost on 31 March of the preceding 17,011,976 16,110,799

year Additions during the year 1,079,471 978,572

Deductions during the year (106,705) (77,395)

Total
17,984,742 17,011,976

Depreciation
5,296,456 4,778,473
As at 31 March of the preceding year
579,806 592,562
Charge for the year
(89,465) (74,579)
On deductions during the year Total
5,786,797 5,296,456

12,197,945 11,715,520
Net block

B Other fixed assets (including furniture and fixtures)

Gross block
87,766,853 80,918,907
At cost on 31 March of the preceding
14,702,443 7,988,185
year Additions during the year
(1,541,302) (1,140,239)
Deductions during the year Total
100,927,994 87,766,853

Depreciation
63,410,328 55,983,854
As at 31 March of the preceding year
10,826,104 8,471,338
Charge for the year (1,410,536) (1,044,864)
Total
On deductions during the year 72,825,896 63,410,328

28,102,098 24,356,525
Net block

C Assets on lease (plant and machinery)

Gross block 4,546,923 4,546,923

- -
At cost on 31 March of the preceding
Total 4,546,923 4,546,923
year Additions during the year

HDFC Bank LLiimited Annual Report 2018 - 2019

33
 ` in ‘000
As at As at
31-Mar-19 31-Mar-18
Depreciation

As at 31 March of the preceding year 4,104,467 4,104,467

Charge for the year - -
Total 4,104,467 4,104,467
Lease adjustment account
As at 31 March of the preceding year 442,456 442,456
Charge for the year - -
Total
442,456 442,456
Unamortised cost of assets on lease
- -
Total
40,300,043 36,072,045
SCHEDULE 11 - OTHER ASSETS

I Interest accrued 118,313,579 90,737,523

II Advance tax / tax deducted at source (net of provisions) 19,441,857 18,456,556
III Stationery and stamps
345,677 333,306
IV Non banking assets acquired in satisfaction of claims
- -
V Bond and share application money pending allotment
146,197 -
VI Security deposit for commercial and residential property
5,112,892 5,004,128
VII Others*
348,379,318 254,255,525
Total
491,739,520 368,787,038
*Includes deferred tax asset (net) of ` 4,352.14 crore (previous year: ` 3,344.02 crore) and deposits
placed with NABARD / SIDBI / NHB on account of shortfall in lending to priority sector of ` 10,832.25
crore (previous year: ` 13,357.25 crore)

SCHEDULE 12 - CONTINGENT LIABILITIES

I Claims against the bank not acknowledged as debts - taxation

12,612,436 11,359,333
II Claims against the bank not acknowledged as debts - others 1,190,364 1,042,772
III Liability on account of outstanding forward exchange contracts 5,561,859,469 4,344,675,713
IV Liability on account of outstanding derivative contracts 3,639,008,146 3,482,687,822
V Guarantees given on behalf of constituents:

- In India 536,870,994 448,741,092

- Outside India 752,190 557,296
VI Acceptances, endorsements and other obligations
475,617,760 395,452,699
VII Other items for which the Bank is contingently liable
19,239,824 70,365,565
Total 10,247,151,183 8,754,882,292

34
 ` in ‘000
Year ended Year ended
31-Mar-19 31-Mar-18
SCHEDULE 13 - INTEREST EARNED
I Interest / discount on advances / bills 775,441,902 626,617,888
II Income from investments 199,974,579 162,223,679
III Interest on balance with RBI and other inter-bank funds 6,357,012 5,238,842
IV Others 7,947,012 8,333,141
Total
989,720,505 802,413,550

SCHEDULE 14 - OTHER INCOME

I Commission, exchange and brokerage 138,055,432 113,938,744
II Profit / (loss) on sale of investments (net) 4,020,717 10,817,025
III Profit / (loss) on revaluation of investments (net) (152,437) (1,570,448)
IV Profit / (loss) on sale of building and other assets (net)
64,341 (3,102)
V Profit / (loss) on exchange / derivative transactions (net)
17,203,935 15,234,978
VI Income earned by way of dividends from subsidiaries / associates and /
or joint ventures abroad / in India 2,044,422 2,416,454
VII Miscellaneous income
15,022,439 11,369,391
Total
176,258,849 152,203,042

SCHEDULE 15 - INTEREST EXPENDED

I Interest on deposits
410,518,998 327,713,471
II Interest on RBI / inter-bank borrowings
95,063,879 72,903,298
III Other interest
1,705,408 848,144
Total
507,288,285 401,464,913

SCHEDULE 16 - OPERATING EXPENSES

I Payments to and provisions for employees
77,617,595 68,057,439
II Rent, taxes and lighting
14,821,006 14,197,682
III Printing and stationery
5,244,100 4,803,103
IV Advertisement and publicity
1,573,670 1,652,205
V Depreciation on bank's property
11,401,037 9,063,418
VI Directors' fees / remuneration, allowances and expenses
32,788 29,596
VII Auditors' fees and expenses
36,230 26,301
VIII Law charges
1,419,023 1,648,413
IX Postage, telegram, telephoneetc.
4,074,980 4,456,040
X Repairs and maintenance
XI Insurance 12,618,088 12,933,744

XII Other expenditure* 10,414,269 8,273,244

Total 121,940,914 101,762,636

35
State Bank of India
Balance Sheet as at 31stMarch, 2019

(000s omitted)
Schedule As at31.03.2019 As at31.03.2018
No. (CurrentYear) (PreviousYear)
` `
CAPITAL AND LIABILITIES
Capital 1 892,46,12 892,45,88
Reserves & Surplus 2 220021,36,33 218236,10,15
Deposits 3 2911386,01,07 2706343,28,50
Borrowings 4 403017,11,82 362142,07,45
Other Liabilities and Provisions 5 145597,29,55 167138,07,68
TOTAL 3680914,24,89 3454751,99,66
ASSETS
Cash and Balances with Reserve Bank of India 6 176932,41,75 150397,18,14
Balances with Banks and money at call and short notice 7 45557,69,40 41501,46,05
Investments 8 967021,94,75 1060986,71,50
Advances 9 2185876,91,77 1934880,18,91
Fixed Assets 10 39197,56,94 39992,25,11
Other Assets 11 266327,70,28 226994,19,95
TOTAL 3680914,24,89 3454751,99,66
Contingent Liabilities 12 1116081,45,94 1162020,69,30
Bills for Collection - 70022,53,97 74027,90,24
Significant Accounting Policies 17
Notes to Accounts 18
Schedules referred to above form an integral part of the Balance Sheet.

Signedby: Smt.AnshulaKant ShriArijitBasu Shri DineshKumarKhara Shri P. K.Gupta

Managing Managing Managing Director Managing Director
Director(Stressed Director(Commercia (Global Banking & (Retail & Digital Banking
Assets, Risk & l Clients Group & IT) Subsidiaries)
Compliance)

Directors:
Dr. Girish Kumar Ahuja
Shri B. Venugopal
Dr. Purnima Gupta
Shri Chandan Sinha
Shri Sanjiv
Malhotra Dr.
Pushpendra Rai
ShriBasant Seth Shri RajnishKumar

ShriBhaskarPramanik Place: Mumbai Date: 10th May 2019 Chairman

36
Schedule 1 - Capital
(000s omitted)
As at 31.03.2019 As at 31.03.2018
(Current Year) (Previous Year)
` `
Authorised Capital : 5000,00,00 5000,00,00
5000,00,00,000 shares of ` 1 each
(Previous Year 5000,00,00,000 shares of ` 1 each)
Issued Capital : 892,54,05 892,54,05
892,54,05,164 Equity Shares of ` 1 each
(Previous Year 892,54,05,164 Equity Shares of ` 1 each)
Subscribed and Paid-up Capital : 892,46,12 892,45,88
892,46,11,534 Equity Shares of ` 1 each
(Previous Year 892,45,87,534 Equity Shares of ` 1 each)
[The above includes 12,10,71,350 Equity Shares of ` 1 each
(Previous Year 12,62,48,980 Equity Shares of ` 1 each) represented by 1,21,07,135
(Previous Year 1,26,24,898) Global Depository Receipts]
TOTAL 892,46,12 892,45,88

Schedule 2 - Reserves & Surplus

(000s omitted)
As at 31.03.2019 As at 31.03.2018
(Current Year) (Previous Year)
` `
I. Statutory Reserves
Opening Balance 65336,98,37 53969,83,67
Additions during the year 258,66,89 11367,14,70
Deductions during the year - -
65595,65,26 65336,98,37
II. Capital Reserves
Opening Balance 9391,65,88 3688,17,59
Additions during the year 379,20,76 5703,48,29
Deductions during the year - -
9770,86,64 9391,65,88
III. Share Premium
Opening Balance 79124,21,51 55423,23,36
Additions during the year 37,92 23718,58,11
Deductions during the year 9,12,38 17,59,96
79115,47,05 79124,21,51
IV. Foreign Currency Translation Reserve
Opening Balance 5720,58,73 4428,63,94
Additions during the year 1077,13,19 1482,65,84
Deductions during the year 66,75,03 190,71,05
6730,96,89 5720,58,73
V. Revenue and Other Reserves*
Opening Balance 48893,23,87 38392,85,99
Additions during the year 563,88,56 14888,94,48
Deductions during the year 76,60,48 4388,56,60
49380,51,95 48893,23,87

36
 (000s omitted)
As at 31.03.2019 As at 31.03.2018
(Current Year) (Previous Year)
` `
VI. Revaluation Reserve
Opening Balance 24847,98,65 31585,64,99
Additions during the year 4670,63,97
Deductions during the year 194,04,57 11408,30,31
24653,94,08 24847,98,65
VII. Balance of Profit and Loss Account (15226,05,54) (15078,56,86)

* Note: Revenue and Other Reserves

include
(i) ` 5,00,00 thousand (Previous Year
` 5,00,00 thousand) of Integration
and Development Fund (maintained
under Section 36 of the State Bank
of India Act, 1955)
(ii) Special Reserve under Section 36(1)
(viii) of the Income Tax Act, 1961
` 13421,76,76 thousand (Previous
Year ` 13421,76,76 thousand)
(iii) Investment Reserves Current Year
` 371,84,01 (Previous Year Nil)
TOTAL 220021,36,33 218236,10,15

Additions during the previous year includes receipt from erstwhile ABs and BMBL on acquisition

Schedule 3 - Deposits
(000s omitted)
As at 31.03.2019 As at 31.03.2018
(Current Year) (Previous Year)
` `
A. I. Demand Deposits
(i) From Banks 6894,62,06 5326,82,76
(ii) From Others 198980,62,74 184847,05,92
II. Savings Bank Deposits 1091751,97,36 1013774,47,09
III. Term Deposits
(i) From Banks 8234,15,28 15218,78,64
(ii) From Others 1605524,63,63 1487176,14,09
TOTAL 2911386,01,07 2706343,28,50
B I. Deposits of Branches in India 2814243,42,48 2599393,43,21
II. Deposits of Branches outside India 97142,58,59 106949,85,29
TOTAL 2911386,01,07 2706343,28,50

37
Schedule 4 - Borrowings
(000s omitted)
As at 31.03.2019 As at 31.03.2018
(Current Year) (Previous Year)
` `
I. Borrowings in India
(i) Reserve Bank of India 94319,00,00 94252,00,00
(ii) Other Banks 260,00,00 1603,85,43
(iii) Other Institutions and Agencies 27853,89,24 2411,83,26
(iv) Capital Instruments :
a. Innovative Perpetual Debt 19152,30,00 11835,00,00
Instruments (IPDI)
b. Subordinated Debt 28256,73,80 32540,83,80
47409,03,80 44375,83,80
TOTAL 169841,93,04 142643,52,49
II. Borrowings outside India
(i) Borrowings and Refinance outside India 231100,53,78 217543,29,96
(ii) Capital Instruments :
Innovative Perpetual Debt 2074,65,00 1955,25,00
Instruments (IPDI)
TOTAL 233175,18,78 219498,54,96

GRAND TOTAL 403017,11,82 362142,07,45

Secured Borrowings included in I & II above 124028,25,70 106637,02,05

Schedule 5 - Other Liabilities & Provisions

(000s omitted)
As at 31.03.2019 As at 31.03.2018
(Current Year) (Previous Year)
` `
I. Bills payable 23875,66,31 26617,74,90
II. Inter-office adjustments (Net) 21735,74,61 40734,57,50
III. Interest accrued 14479,87,48 16279,62,96
IV. Deferred Tax Liabilities (Net) 2,33,15 2,80,59
V. Others (including provisions)* 85503,68,00 83503,31,73
* Includes prudential provision for Standard Assets
` 12396,67,91 thousand (Previous Year `12499,46,35 thousand)
TOTAL 145597,29,55 167138,07,68

Schedule 6 - Cash and Balances With Reserve Bank of India

(000s omitted)
As at 31.03.2019 As at 31.03.2018
(Current Year) (Previous Year)
` `
I. Cash in hand (including foreign currency notes and gold) 18777,94,34 15472,42,20
II. Balance with Reserve Bank of India
(i) In Current Account 158154,47,41 134924,75,94
(ii) In Other Accounts - -
TOTAL 176932,41,75 150397,18,14

38
Schedule 7 - Balances With Banks And Money At Call & Short Notice
(000s omitted)
As at 31.03.2019 As at 31.03.2018
(Current Year) (Previous Year)
` `
I. In India
(i) Balances with banks
(a) In Current Accounts 87,02,70 48,59,90
(b) In Other Deposit Accounts - -
(ii) Money at call and short notice
(a) With banks 4608,88,73 1614,44,26
(b) With other institutions - -
TOTAL 4695,91,43 1663,04,16
II. Outside India
(i) In Current Accounts 19667,07,18 28528,09,13
(ii) In Other Deposit Accounts 2870,14,73 1226,43,94
(iii) Money at call and short notice 18324,56,06 10083,88,82
TOTAL 40861,77,97 39838,41,89
GRAND TOTAL (I and II) 45557,69,40 41501,46,05

Schedule 8 - Investments
(000s omitted)
As at 31.03.2019 As at 31.03.2018
(Current Year) (Previous Year)
` `
I. Investments in India in :
(i) Government Securities 761883,12,15 848395,84,44
(ii) Other approved securities - -
(iii) Shares 9878,74,38 10516,69,01
(iv) Debentures and Bonds 84948,36,68 77962,93,46
(v) Subsidiaries and/ or Joint Ventures (including Associates) 5608,00,04 5077,97,43
(vi) Others (Units of Mutual Funds, Commercial Papers etc.) 53388,53,85 72882,56,59
TOTAL 915706,77,10 1014836,00,93
II. Investments outside India in :
(i) Government Securities (including local authorities) 11644,84,99 10520,45,85
(ii) Subsidiaries and/ or Joint Ventures abroad 4298,49,28 2712,22,30
(iii) Other Investments (Shares, Debentures etc.) 35371,83,38 32918,02,42
TOTAL 51315,17,65 46150,70,57
GRAND TOTAL (I and II) 967021,94,75 1060986,71,50
III. Investments in India :
(i) Gross Value of Investments 926650,59,97 1026438,36,91
(ii) Less: Aggregate of Provisions / Depreciation 10943,82,87 11602,35,98
(iii) Net Investments (vide I above) TOTAL 915706,77,10 1014836,00,93
IV. Investments outside India :
(i) Gross Value of Investments 51473,39,76 46658,94,18
(ii) Less: Aggregate of Provisions / Depreciation 158,22,11 508,23,61
(iii) Net Investments (vide II above) TOTAL 51315,17,65 46150,70,57
GRAND TOTAL (III and IV) 39 967021,94,75 1060986,71,50
Schedule 9 - Advances
(000s omitted)
As at 31.03.2019 As at 31.03.2018
(Current Year) (Previous Year)
` `
A. I. Bills purchased and discounted 80278,87,21 67613,55,55
II. Cash credits, overdrafts and loans repayable on demand 776633,45,81 746252,38,11
III. Term loans 1328964,58,75 1121014,25,25
TOTAL 2185876,91,77 1934880,18,91
B. I. Secured by tangible assets (includes advances against Book Debts) 1582764,41,50 1505988,72,17
II. Covered by Bank/ Government Guarantees 80173,16,17 68651,16,60
III. Unsecured 522939,34,10 360240,30,14
TOTAL 2185876,91,77 1934880,18,91
C. I. Advances in India
(i) Priority Sector 520729,77,60 448358,95,60
(ii) Public Sector 240295,89,39 161939,24,46
(iii) Banks 9174,06,50 2845,19,97
(iv) Others 1114679,73,28 1023464,39,00
TOTAL 1884879,46,77 1636607,79,03
II. Advances outside India
(i) Due from banks 69975,74,47 77109,63,56
(ii) Due from others
(a) Bills purchased and discounted 26740,94,11 14539,04,35
(b) Syndicated loans 138191,25,40 120685,86,16
(c) Others 66089,51,02 85937,85,81
TOTAL 300997,45,00 298272,39,88
GRAND TOTAL [C (I) and C (II)] 2185876,91,77 1934880,18,91

Schedule 10 - Fixed Assets

(000s omitted)
As at 31.03.2019 As at 31.03.2018
(Current Year) (Previous Year)
` `
I. Premises (including Revalued Premises)
At cost/revalued as at 31st March of the 30201,53,82 35961,29,86
preceding year
Additions:
- during the year 669,84,09 1056,24,24
- for Revaluation - 4477,39,82
Deductions during the year 39,60,68 11293,40,10
Depreciation to date:
- on cost 714,18,98 614,08,31
- on Revaluation 497,17,97 308,66,78
29620,40,28 29278,78,73

40
 (000s omitted)
As at 31.03.2019 As at 31.03.2018
(Current Year) (Previous Year)
` `
II. Other Fixed Assets (including furniture
and fixtures)
At cost as at 31st March of the preceding year 30114,90,96 21856,35,33
Additions during the year 2404,25,97 9232,65,68
Deductions during the year 1444,39,63 974,10,05
Depreciation to date 22186,23,44 20192,98,49
8888,53,86 9921,92,47
III. Assets under Construction (Including 688,62,80 791,53,91
Premises)
TOTAL (I, II, and III ) 39197,56,94 39992,25,11

Additions during the previous year includes receipt from erstwhile ABs and BMBL on acquisition

Schedule 11 - Other Assets

(000s omitted)
As at 31.03.2019 As at 31.03.2018
(Current Year) (Previous Year)
` `
I. Inter-Office adjustments (net) - -
II. Interest accrued 26141,97,03 25714,46,61
III. Tax paid in advance / tax deducted at source 24376,29,42 17546,11,08
IV. Deferred Tax Assets (Net) 10422,49,17 11368,79,19
V. Stationery and Stamps 102,14,03 107,05,92
VI. Non-banking assets acquired in satisfaction of claims 73,71 4,64,72
VII. Others* 205284,06,92 172253,12,43
*Includes Deposits placed with NABARD/SIDBI/NHB amounting to
` 138245,29,37 thousand (Previous Year ` 95643,16,91 thousand)
TOTAL 266327,70,28 226994,19,95

Schedule 12 - Contingent Liabilities

(000s omitted)
As at 31.03.2019 As at 31.03.2018
(Current Year) (Previous Year)
` `
I. Claims against the bank not acknowledged as debts 43357,92,57 35153,03,00
II. Liability for partly paid investments / Venture Funds 472,87,61 619,44,30
III. Liability on account of outstanding forward exchange contracts 596621,66,74 644102,45,28
IV. Guarantees given on behalf of constituents
(a) In India 157186,66,27 148866,54,48
(b) Outside India 72425,94,84 67469,26,89
V. Acceptances, endorsements and other obligations 124194,94,04 121238,94,74
VI. Other items for which the bank is contingently liable* 121821,43,87 144571,00,61
*Includes Derivatives ` 117435,24,87 thousand (Previous Year
` 141154,40,39 thousand)
TOTAL 1116081,45,94 1162020,69,30

41
Schedule 13 - Interest Earned
(000s omitted)
Year ended 31.03.2019 Year ended 31.03.2018
(Current Year) (Previous Year)
` `
I. Interest / discount on advances / bills 161640,23,23 141363,16,78
II. Incom e on investments 74406,16,37 70337,61,67
III.Interest on balances with Reserve Bank of India and other inter-bank 1179,06,59 2249,99,69
funds
IV. Others 5643,19,16 6548,53,42
TOTAL 242868,65,35 220499,31,56

Schedule 14 - Other Income

(000s omitted)
Year ended 31.03.2019 Year ended 31.03.2018
(Current Year) (Previous Year)
` `
I. Commission, exchange and brokerage 23303,89,22 22996,80,04
II. Profit/ (Loss) on sale of investm ents (Net)1 3146,86,06 13423,34,83
III. Profit/ (Loss) on revaluation of investments (Net) (2124,03,82) (1120,61,02)
IV. Profit/ (Loss) on sale of land, buildings and other assets (Net) (34,98,24) (30,03,00)
V. Profit/ (Loss) on exchange transactions (Net) 2155,75,29 2484,59,52
VI. Incom e earned by way of dividends etc., from subsidiaries/ companies 348,01,18 448,51,70
and/ or joint ventures abroad/ in India
VII. Incom e from financial lease - -
VIII. Miscellaneous Incom e 2 9979,39,09 6398,06,64
TOTAL 36774,88,78 44600,68,71
1 Profit/ (Loss) on sale of investm ents (Net) includes exceptional item of ` 473.12 crore (Previous year ` 5,436.17 crore).
2 Miscellaneous Incom e includes exceptional item of ` 1,087.43 crore (Previous year nil) and Recoveries made in write-off accounts
` 8,344.61 crore (Previous year ` 5,333.20 crore).

Schedule 15 - Interest Expended

(000s omitted)
Year ended 31.03.2019 Year ended 31.03.2018
(Current Year) (Previous Year)
` `
I. Interest on deposits 140272,36,59 135725,70,41
II. Interest on Reserve Bank of India/ Inter-bank borrowings 9838,95,98 5312,42,79
III. Others 4408,45,23 4607,46,80
TOTAL 154519,77,80 145645,60,00

Schedule16-Operating Expenses
(000s omitted)
Year ended 31.03.2019 Year ended 31.03.2018
(Current Year) (Previous Year)
` `
I. Payments to and provisions for employees 41054,70,68 33178,67,95
II. Rent, taxes and lighting 5265,65,95 5140,43,15
III. Printing and stationery 498,94,99 518,13,63
IV. Advertisem ent and publicity 354,05,58 358,32,54
V. Depreciation on Bank's property 3212,30,65 2919,46,63
VI. Directors' fees, allowances and expenses 1,34,65 61,93
VII. Auditors' fees and expenses (including branch auditors' fees and expenses) 293,67,65 289,18,07
VIII. Law charges 261,84,28 199,03,48
IX. Postages, Telegrams, Telephones etc. 387,01,81 506,83,11
X. Repairs and maintenance 904,08,56 826,93,29
XI. Insurance 2845,44,78 2759,88,05
XII. Other expenditure 14608,64,16 13245,92,81
TOTAL 69687,73,74 59943,44,64

42
 COMPARISON OF BALANCE SHEET HDFC AND
STATE BANK OF INDIA
BALANCE SHEET DATA

Rs
Advances 8,692,227 22,268,537 39.0%
m

Rs
Deposits 9,225,027 29,405,411 31.4%
m

Credit/Deposit
x 94.2 75.7 124.4%
ratio

Yield on advances % 9.6 7.5 129.1%

Cost of deposits % 4.4 4.8 92.8%

Net Interest
% 4.2 2.7 152.3%
Margin

Rs
Net fixed assets 42,198 407,031 10.4%
m

Rs
Share capital 5,447 8,925 61.0%
m

Rs
Free reserves 1,531,280 2,336,032 65.6%
m

Rs
Net worth 1,536,727 2,344,957 65.5%
m

Rs
Borrowings 1,577,328 4,137,477 38.1%
m

43
 BALANCE SHEET DATA

Rs
Investments 2,869,177 11,192,478 25.6%
m

Rs
Total assets 12,928,057 38,884,671 33.2%
m

Debt/equity ratio x 7.0 14.3 49.1%

Return on assets % 1.7 0.1 2,920.9%

Return on equity % 14.5 1.0 1,481.9%

Capital adequacy
% 17.1 12.9 133.1%
ratio

Net NPAs % 0.4 3.0 13.0%

44
State Bank of India
Profit and Loss Account for the year ended 31 st March, 2019

(000s omitted)
Schedule Year ended 31.03.2019 Year ended 31.03.2018
No. (Current Year) (Previous Year)
` `
I. INCOME
Interest earned 13 242868,65,35 220499,31,56
Other Income 14 36774,88,78 44600,68,71
TOTAL 279643,54,13 265100,00,27
II. EXPENDITURE
Interest expended 15 154519,77,80 145645,60,00
Operating expenses 16 69687,73,74 59943,44,64
Provisions and contingencies 54573,79,61 66058,41,00
TOTAL 278781,31,15 271647,45,64
III. PROFIT
Net Profit/(Loss) for the year 862,22,98 (6547,45,37)
Add: Profit/(Loss) brought forward (15078,56,86) 31,68
Loss of eABs & BMB on amalgamation - (6407,68,97)
TOTAL (14216,33,88) (12954,82,66)
IV. APPROPRIATIONS
Transfer to Statutory Reserve 258,66,89 -
Transfer to Capital Reserve 379,20,76 3288,87,88
Transfer to Revenue and other Reserves 371,84,01 (1165,13,68)
Balance carried over to Balance Sheet (15226,05,54) (15078,56,86)
TOTAL (14216,33,88) (12954,82,66)
Basic Earning per Share: ` 0.97 ` -7.67
Diluted Earning per Share: ` 0.97 ` -7.67
Significant Accounting Policies 17
Notes to Accounts 18
The schedules referred to above form an integral part of the Profit & Loss Account.

Signed by: Smt. Anshula Kant Shri Arijit Basu Shri Dinesh Kumar Khara Shri P. K. Gupta
Managing Director Managing Director Managing Director Managing Director
(Stressed Assets, Risk (Commercial Clients (Global Banking & (Retail & Digital Banking)
& Compliance) Group & IT) Subsidiaries)

Directors:
Dr. Girish Kumar Ahuja
Shri B. Venugopal
Dr. Purnima Gupta
Shri Chandan Sinha
Shri Sanjiv Malhotra
Dr. Pushpendra Rai
Shri Basant Seth Shri Rajnish Kumar
Shri Bhaskar Pramanik Chairman

Place: Mumbai 45
Date: 10th May 2019
 hdfc
Profit and Loss Account for the year ended 31st March, 2019
Rs (in Crores)
Mar'19 Mar'18
12Months 12Months

INCOME:
Sales Turnover 98972.05 80241.35
Excise Duty .00 .00
NET SALES 98972.05 80241.35
Other Income 17625.8849 15220.3042
TOTAL INCOME 116597.94 95461.66
EXPENDITURE:
Manufacturing Expenses .00 .00
Material Consumed .00 .00
Personal Expenses 7761.76 6805.74
Selling Expenses 157.37 165.22
Administrative Expenses 17060.14 14813.08
Expenses Capitalized .00 .00
Provisions Made 7550.08 5927.49
TOTAL EXPENDITURE 32529.35 27711.53
Operating Profit 23263.96 18310.82
EBITDA 91618.67 73677.62
Depreciation 1140.10 906.34
Other Write-offs .00 .00
EBIT 90478.57 72771.28
Interest 50728.83 40146.49
EBT 32199.66 26697.30
Taxes 11121.49 9210.57
Profit and Loss for the Year 21078.17 17486.73
Non Recurring Items .00 .00
Other Non Cash Adjustments .00 .00
Other Adjustments .00 .00
REPORTED PAT 21078.17 17486.73
KEY ITEMS
Preference Dividend .00 .00
Equity Dividend 4052.59 .00
Equity Dividend (%) 744.05 .00
Shares in Issue (Lakhs) 27233.07 25950.90
EPS - Annualized (Rs) 77.40 67.38
Rs (in Crores)

46
 SBI is India's largest bank in the country with an asset size of over Rs 13 trillion.

Although the bank's loan book is largely skewed towards corporate (large, mid and small)

loans (50% of total advances in FY12), the retail side is also fast catching up. SBI has a

network of almost 14,270 branches and over 22,141 ATMs across the country.

HDFC Bank is the second largest private sector bank in the country (after ICICI Bank) in

terms of asset size. The bank has tripled its share from 1.2% of total non-food credit

in FY02 to 4.2% in FY12. Retail assets constituted 51.3% of advances in FY12. Its group

companies, HDFC Standard Life (insurance), HDFC AMC (mutual funds) and HDFC

Securities (equities) add scalability to the bank's offerings.

47
 To compare the customer satisfaction

As per the secondary data collected from different websites on the basis of treatment of
customers, redressed of grievance, availability of financial and banking services following
pie charts is made.

customer satisfaction of HDFC bank

excellent good average poor

8%

19%
48%

25%

48% customers believed that the services provided by the banks were excellent. 25% said the service is
good. 19% said the service is average while the others said the service was poor.

customer satisfaction of State bank of India

excellent good average poor

2%

15%

25% 58%

58% customers believed that the services provided by the banks were excellent. 25% said the service is
good. 15% said the service is average while the others said the service was poor.

48
1. Does the bank provide different saving account /deposit account as per requirement of
customers?

SBI

28%

Yes
No

72%

HDFC

30%

Yes
No

70%

49
2. How would you rate the interest rate that bank offers on deposits with the bank?

HDFC
2%

4%

Highly satisfied

36% satisfied
not satisfied
58%
other

State bank of India

3%
12%

Highly Satisfied
satisfied
not satisfied
55%
30% others

50
3. Does the branch staff have adequate knowledge of banks product and services?

HDFC

25%

Product
Services

75%

SBI

35%

Product
Services

65%

75% customers of HDFC were of the opinion that the bank personnel have through knowledge of the product and
35% State bank of India customers believe that the bank personnel have adequate knowledge about bank product.

51
4. The branches have convenient working hours and are located at convenient location to serve
you?

HDFC

35%
yes
No
65%

SBI

21%

yes
No

79%

65% customers of HDFC bank and 79% customers of State bank of India, think that the respective banks
have convenient working hours.

52
5. Do the branch staff behave in a courteous manner while dealing with the customers?

HDFC
Yes No

10%

90%

State bank of India

Yes No

15%

85%

90% of the respondents of HDFC and 85% of the respondent of State bank of India said that the staff
behaves in a very polite and courteous manner with them .

53
6. Do you find frequent ATM’s of the bank?

HDFC

No
40%

Yes
60%

State bank of India

Yes No

50% 50%

60% of HDFC banks and 50% respondents said that they find the ATM of their bank and ATM is easy to
locate

54
7. How would you rate ease of access and the usefulness of our online banking / channels?

HDFC

4%

22%
Excellent
48% Good
average
poor

26%

SBI

4%
10%

Excellent
good

28% average
58%
poor

 48% of HDFC bank customers found excellent access and the usefulness of our Online
banking/channels while 26% said it –was good and 22% said it was average 4% said poor.

 58% of State bank of India found excellent access and the usefulness of our online banking /
channels while 28% said it was good and 10% said it was average and 4. % said poor.

55
8. How would rate the grievance redressal centre of the bank?

HDFC

10%

Excellent
20% 40%
good
average
poor

30%

SBI

5%

15%
Excellent
45% good
average
poor
35%

 40% of HDFC bank customers found excellent grievance redressal centre of the bank while 30%
said was good and 15% said it was average and 10% said it was poor.
 45% of SBI bank customers found Excellent and 35% said it was good, 25% said it was average
and 5% said it was poor.

56
9. How long does it take for the bank to solve the grievances?

HDFC

5%
9%

Within a day's

18% Within a 2 days

Within a 3 days
more than 3 days
68%

State Bank of India

7%

10%
Within a day's
within a 2 days
within a 3 days
13%
more than 3 days

70%

68% respondents oh HDFC and 70% of the customers of SBI said that the grievance is solved within
a day’s time. 16% customers of HDFC and 15% customers said that the grievance is solving in 2
days. A 10% of SBI and 9% said that the problems are solved in 3 days. 7 % of the HDFC bank’s
customers and 5 % customer take more than 3 days.

57
10. How would you rate the customer’s experience of the bank?

HDFC

7%

13%
Excellent

50% Good
average
poor
30%

State Bank of India

6%
13%
Excellent
Good
50%
average

31% poor

49% customers of HDFC bank and 55 % of SBI believe that they have excellent customers
experience.
30% customers of HDFC bank customers and 31% SBI bank employees say that they have good
customers experience. 13% employees say that they have average customer experience.
7% customers of HDFC bank and 6% of SBI bank employees say that they have poor customer
experience.

58
 HDFC Bank SWOT Analysis

SWOT analysis is a vital strategic planning tool that can be used by HDFC Bank Limited managers to do a

Situational analysis of the firm. It is an important technique to map out the present Strengths (S),

59
Weakness (W), Opportunities (O) & Threats (T) HDFC Bank Limited is facing in its current business
environment.

The HDFC Bank Limited is one of the leading organizations in its industry. HDFC Bank Limited maintains

its dominant position in market by critically analyzing and reviewing the SWOT analysis. SWOT analysis

a highly interactive process and requires effective coordination among various departments within the

company such as – marketing, finance, operations, management information systems and strategic

planning.

As one of the leading companies in its industry, HDFC Bank Limited has numerous strengths that help it

to thrive in the market place. These strengths not only help it to protect the market share in existing

markets but also help in penetrating new markets.

60
 State Bank of India SWOT Analysis

SBI is the largest bank in India in terms of market share, revenue and assets.
As per recent data the bank has more than 13,000 outlets and 25,000 ATM centres
the bank has its presence in 32 countries engaging currency trade all over the world.
Lack of proper technology driven services when compared to private banks
Employees show reluctance to solve issues quickly due to higher job security and customers’ waiting
period is long when compared to private banks
The banks spends a huge amount on its rented buildings

61
 Corporate Social Responsibility
HDFC
HDFC Life believes that the edifice of long-term sustainable business growth can be
established only on a foundation of ethical social responsibility.
We pro-actively contribute towards social development through our various initiatives
under the realm of Corporate Social Responsibility (CSR).
While Corporate Social Responsibility activities have been implemented in the
organization since 2010, the CSR Policy of HDFC Life has been revised in 2016- 17 to
ensure sharper alignment with Section 135 of the Companies Act, 2013.
We actively strive to encourage our employees to volunteer and collaborate with the eco-
system by building a sense of social responsibility and contributing to the society.

We have undertaken various projects under the education framework that focus on
impacting underprivileged children with a primary aim of promoting better quality of
education

Health is a crucial area of intervention to aid the underprivileged sections of the society.
HDFC Life has tied up for a large project with a focus on reducing and preventing protein
energy malnutrition.

HDFC Life has been responding to situations to help restore the self esteem of the
underprivileged by providing them a sustainable housing solution. In addition, we have
also taken efforts to reach out to the elderly, who form an important pillar of our society.

We understand fully that our identity as a world class Indian bank is shaped by our
stakeholders and customers. They are at the heart of of everything we do. Which is why we
leave no stone unturned in delivering value to our customers, to the community, or to our
workforce? We ensure a fair recruitment process that helps us identify and hire people
with the right values, who are then groomed, encouraged and retained through a
combination of financial and non- financial incentives.

We strive towards the progress of society, through our Corporate Social Responsibility
(CSR) policy. Our Umbrella of Social Initiatives ‘Parivartan’ has touched millions of lives
and helped empower and strengthen entire communities. Activities under the Parivartan

62
banner are spread across a diverse range of intervention areas and we have spent ` 443.8
crore on the development and empowerment of our communities, reaching out to more
than

5.4 crore beneficiaries in the process.

The Sustainable Livelihood Initiative (SLI) has been a key driver in pushing for financial
inclusion among families, especially women, in un-banked and under-banked areas. The
initiative has had a major socio-economic impact by focusing on lending financial aid to
Self Help Groups (SHG) for women. Besides providing credit, we also train people in
occupational skills, financial literacy, credit counseling and market linkage.

We have been able to meet the critical needs of communities across the country by
designing and deploying multi-faceted interventions through our Holistic Rural
Development Programmed (HRDP). As part of this program, we enable and empower
communities with natural resource management, education, healthcare and sanitation, to
skill training targeted at livelihood enhancement.

63
 Corporate Social Responsibility
State bank of India
SBI Life believes in ‘Protection of Life’, which is blatantly reflected in its services, and that the
development of children holds the key to progress of the nation. We thus promote and facilitate children
to emerge as productive assets, in a sustained and scalable manner. The company has concentrated
majorly towards providing education to the financially disadvantaged children, supporting preventive
healthcare and wellness, rural development and environmental upgrade.

Impact of CSR in FY 2017-18:

• 256 Projects undertaken

• CSR presence in 22 states

• 2.2 lakh+ lives impacted

• 50,000 trees planted

Corporate social responsibility is a systematic business approach and ethical part of the organization. It
is also referred to as corporate citizenship, sustainable development, corporate accountability, and
corporate shared value. Corporate social responsibility is a self- regulated and continuous process. It is a
concept where the bank decides to contribute to a better society.

The World Business Council for Sustainable Development defines Corporate Social Responsibility as the
“continuing commitment by business to behave ethically and contribute to economic development while
improving the quality of life of the workforce and their families as well as of the local community and
society at large”.

 Corporate: means doing business for wealth creation.

 Social: means to take care of society or community.

64
  Responsibility: means accountability towards the welfare or development of the economy.

SBI (State Bank of India) is a nationalized bank. State Bank Group formed SBI foundation for all the CSR
activities to bring smile to the socio-economically backward sections of the society.

SBI works with SBI foundation which aims on promoting growth, equality, responsive to the relevant
needs of communities where it operates.

After the merger of SBBJ bank with SBI, they will now contribute two percent of the annual net profit on
Corporate Social Responsibility. Earlier SBI bank was spending one percent of the profit on Corporate
Social Responsibility activities.

In 2018, SBI contributed towards the construction of a residential school building in Patna, Bihar. SBI
also provides support for the education and overall development of underprivileged children from Dabok
village, Udaipur (Rajasthan). The provision of electrical appliances and equipments to a NGO was done by
SBI in Chandigarh to improve its infrastructure and sanitation facilities were also provided to girls.

In Bikaner, SBI distributed T-shirts and caps in 2017 and spent Rs.62999/-. They donated Rs.71000/- to
APNA GHAR ASHRAM RBO-1 in Bikaner.

The AGM of SBI (Bikaner branch) Mr. Harish Raj pal distributed gifts to all the employees on New Year, as
a token of appreciation and also for the motivation of employees to work harder in future, as a result of
which a tremendous hike was seen in the business
Corporate Social Responsibility is most important part of banking sector because it increases the revenue

and also removes the negative image of the organization. It builds a long term relationship with society

as well as improve the brand image of the banking sector. After the analysis, we can suggest that the

public sector works more than the private sector in social welfare but there is more need for creation of

awareness among Corporate Social Responsibility. At present the banking sectors are working more

effectively as compared to past years. After the involvement of RBI and Government of India, banking

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Sectors are more aware of the policies and activities related to Corporate Social Responsibility.

In 2018, SBI contributed towards the construction of a residential school building in

Patna, Bihar.

SBI is India's largest bank in the country with an asset size of over Rs 13 trillion.

Although the bank's loan book is largely skewed towards corporate (large, mid and small)

loans (50% of total advances in FY12), the retail side is also fast catching up. SBI has a

network of almost 14,270 branches and over 22,141 ATMs across the country.

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 CONCLUSIONS AND FINDINGS

 The products that HDFC banks offer is varied that is more options are available to
customers but the minimum balances that are to be maintained are higher
 In HDFC banks and the rate of interest on loans that is offered by State Bank of
India is high.
 The Balance sheet the Balance sheet items show and increasing trend for both.
 Customers satisfaction the customers of HDFC bank are comparatively more
satisfied because the employees of the banks are very generous while addressing
the customers , there are large number of ATMs available of HDFC various product
are available according to the needs of the customers.
 While hub bank has been appearing great money related outcomes and has been
growing itself and its administrations with a solid advertiser base while its benefits
demonstrated a declining result could result in terrible pictures in investors or
speculators.
 The agreeable bank segment needs to confront the twin difficulties of gathering the
rivalry at the household level and at universal dimension. The State bank of India
rather than bowing to the difficulties should skip back and take up the challenges
and use the new chances.

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 SUGGESTION
 The financial products of both the companies are competent enough and offer
almost similar products but the products offered by SBI caters a large portion of
customers and HDFC bank should also design its policies for handicapped ,military
personnel etc.
 The Balance sheet of HDFC Bank and shows an increasing trend but the HDFC bank
should try to cope up with its profits.
 State bank of India the bank has an increasing trend of profit but it should spread its
business across India and not just the six cities.
 Though HDFC has a declining trend in the Balance sheet should give importance to
CSR activities.

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 BIBILIOGRAPHY & REFERENCE

www.equitymaster.com

www.GObanking.com

www.paisabazaar.com

www.MyLoanCare.in

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