A SUMMER TRAINING PROJECT REPORT

ON

“A STUDY ON CUSTOMER PERCEPTION ON

HDFC BANK”
And
Client Profiling
[Preferred Clients]
“ADHARSHILA COLLEGE OF MANAGEMENT STUDIES”

Submitted in partial fulfillment of Award of the Degree of

MASTERS OF BUSINESS ADMINISTRATION

SESSION 2009-11

Under the supervision of

Mr. KUMAR SAJAN

(Manager credit card-sales, HDFC BANK, BIHAR)

Submitted By: Submitted To:

Ranveer pratap singh Dr. Desh Deepak Agarwal

Roll No. : 0956070024 H.O.D.- MBA Deptt.

M.B.A.-II Semester

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 DECLARATION

I hereby declare that this project report entitled as “ A study on customer Perception on HDFC Bank
AND CLIENT PROFILING ”, submitted to, ADHARSHILA COLLEGE OF MANAGEMENT STUDUES, in partial
fulfilment of the requirement of MBA is a bonfire work done by me and it was not submitted to any
other university or institution previously.

(RANVEER PRATAP SINGH)

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 PREFACE

MBA is a stepping-stone to the management carrier and to develop good managerial skills it is
necessary that the theoretical aspects learnt in the class rooms must be supplemented with
exposure to the real work environment.

Theoretical knowledge just provides the base and is not sufficient to produce a good manager
that’s why practical knowledge is needed so as to enhance the working capabilities by working
in a real work environment

Therefore the research product is an essential requirement for the student of MBA. This research
project not only helps the student to utilize his skills properly, learn field realities but also
provides a chance to the organization to find out the talent among the budding managers in the
very beginning.

In accordance with the requirement of MBA course I have done my summer training project on
the topic “A STUDY ON CUSTOMETR PERCEPTION ON HDFC BANK AND CLIENT PROFILING”.
The main objective of the research project was to know the satisfaction level of the preferred
customers of HDFC Bank and to profile [i.e. maintain a record, detailed information] of the
preferred customers according the format provided by the organisation.

For conducting the research project a sample size of 50 customers of HDFC Bank were
selected. The information regarding the project research was collected through the questionnaire.
Regarding the profiling, the company provided me with the details of each customers and I used
to call them so as to fill in the necessary details.

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 ACKNOWLEDGEMENT

It is our duty to acknowledge with gratitude the generous help that I have received from

MS.Akansha Rastogi we have had the advantages of his critical advice from his profound

knowledge in marketing (sales). He has indeed taken personal interest in preparing an

innovative Report on “A STUDY ON CUSTOMETR PERCEPTION ON HDFC BANK AND CLIENT

PROFILING”

He has helped us a lot in preparing the questionnaire.

I also want to thank Dr. Desh Deepak Agarwal H.O.D.- MBA Deptt. my company guide for his

enduring patience, valuable guidance and constant encouragement during the course of project

work.

My sincere thanks to all faculty members of Adharshila College of management studies. For

their worthy help and cooperation.

Finally, it’s my pleasure to acknowledge the kind help and cooperation of all the respondents of

BIHAR with whom I met throughout the duration of this project.

(RANVEER PRATAP SINGH)

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 TABLE OF CONTENTS

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

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  Eligibility for entry into preferred programme.
 Grouping
 Usefulness of the information.
 Service quality.
 Dimensions of service quality.
 Customer satisfaction and loyalty.
 Zero defections.
 Finding out awareness of the services among customers.
 Questionnaire
 Analysis and interpretation.
 Recommendations.
 Conclusion.
 Bibliography.

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 EXECUTIVE SUMMARY

The bases of the project was to understand the customers perception and client profiling about

the various schemes like Personal loans, Home loans, Car loans under asset products and

saving bank account, Current account and Salary account under liability products for retail

banking.

The project also encompasses, identifies the scope and various parameters, a customer would

look into while transacting with bank for certain scheme.

Overall analysis has been done, keeping in mind the various customer segments like

businessmen, salaried people, students and others, consideration while opting for any deposits

or borrowings.

The SWOT analysis shows the pitfalls and identifies the opportunities available for HDFC Bank.

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 OBJECTIVES OF THE STUDY

The prime objective of the study is to observe, interpret, and analyze the customer

perception on products and services offered by HDFC BANK, and to study their

Satisfaction Level.

To gain knowledge of the various products and their features through observation method

and through secondary data.

To understand daily operations of the bank.

To gain insight into the fact as to where does the bank [HDFC] stand with respect to other

banks in the region.

To gather the personal details of the preferred clients while drafting their profile for future

study and use by the organisation.

To form a database of the preferred clients by filling in the details on the format as

provided by the organisation.

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 RESEARCH METHODOLOGY

It is the arrangement of the conditions for collection and analysis of data in a manner that aims to
combine relevance to the research purpose with economy in procedure.

The research is explanatory in the beginning as the secondary data is collected mostly from the

higher management and some from middle management, from the employees of HDFC, through

personal investigation and observation, and through customers. This information is able to give

knowledge about the company and its share in the market.

The interview with the profiling clients of HDFC Bank was carried out in the form of
questionnaire hence it was not so flexible.

Some people were not comfortable with filling the questionnaire, so I convinced them for the
same. Majority of times I succeeded but at times I failed to convince some. All the information
was collected from primary and secondary data only.

The information obtained from primary data was analyzed and interpreted and various
conclusions were drawn.

Measures of statistical analysis were not used as I have not used any hypothesis and not
expressing any relationship between variables.

Questionnaire

Questionnaire was prepared keeping in the mind the objective of the project. It was seen that it
was made as easy as possible so that there would not be any complications for the customers to
understand as it was a general survey on customer satisfaction of customers of HDFC bank.
There were both open ended and closed questions in the questionnaire

Sample size

50 clients were interviewed which included 30 clients of the branch I was working with and 20
others from various other branches of the company operational in the region.

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DATA COLLECTION

The data was collected from both primary data and secondary data source.

Primary data:

In the process of doing the project, the clients of different branches of the bank were met and the
details were taken. These clients gave their views regarding branch office in terms of their
services. They also told the influencing factors and various questions that were asked.

Secondary data

Secondary data was used in order to get the information about the company. Various facts and
details about HDFC bank were got. The website gone through is www.hdfcbank.com

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 LIMITATIONS OF THE STUDY

The study could have been more comprehensive and more representative of the universe,

had the sample-size been larger, but it was not possible mainly due to lack of time and

some other constraints.

The areas covered were restricted to Srinagar city only and as such the results of

questionnaires are valid for Srinagar city only.

All this report has been an individual attempt and it involves the human process of

interpretation and analysis, so there are chances of human error.

While talking to customers over the telephone, regarding their profiling process it was

never known whether I was speaking to the real intended individual.

While filling up the questionnaire, not all the respondents were eagerly giving the

responses. Chances are quite high that some of them might have given wrong or

misleading answers.

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 HISTORY OF BANKING IN INDIA

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

1) Pre-Nationalization Era.

2) Nationalization Stage.

3) Post Liberalization Era.

1) Pre-Nationalization Era:

In India the business of banking and credit was practices even in very early times. The
remittance of money through Hundies, an indigenous credit instrument, was very popular. The
hundies were issued by bankers known as Shroffs, Sahukars, Shahus or Mahajans in different
parts of the country.

The modern type of banking, however, was developed by the Agency Houses of Calcutta and
Bombay after the establishment of Rule by the East India Company in 18th and 19th centuries.

During the early part of the 19 th Century, ht volume of foreign trade was relatively small. Later
on as the trade expanded, the need for banks of the European type was felt and the government
of the East India Company took interest in having its own bank. The government of Bengal took
the initiative and the first presidency bank, the Bank of Calcutta (Bank of Bengal) was
established in 180. In 1840, the Bank of Bombay and IN 1843, the Bank of Madras was also set
up.

These three banks are also known as “Presidency Bank”. The Presidency Banks had their
branches in important trading centers but mostly lacked in uniformity in their operational
policies. In 1899, the Government proposed to amalgamate these three banks in to one so that it
could also function as a Central Bank, but the Presidency Banks did not favor the idea. However,
the conditions obtaining during world war period (1914-1918) emphasized the need for a unified
banking institution, as a result of which the Imperial Bank was set up in1921. The Imperial Bank
of India acted like a Central bank and as a banker for other banks.

The RBI (Reserve Bank of India) was established in 1935 as the Central Bank of the Country. In
1949, the Banking Regulation act was passed and the RBI was nationalized and acquired
extensive regulatory powers over the commercial banks.

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

2) Nationalization Stages:

After Independence, in 1951, the All India Rural Credit survey, committee of Direction with
Shri. A. D. Gorwala as Chairman recommended amalgamation of the Imperial Bank of India and
ten others banks into a newly established bank called the State Bank of India (SBI). The
Government of India accepted the recommendations of the committee and introduced the State
Bank of India bill in the Lok Sabha on 16 th April 1955 and it was passed by Parliament and got
the president’s assent on 8th May 1955. The Act came into force on 1 st July 1955, and the
Imperial Bank of India was nationalized in 1955 as the State Bank of India.

The main objective of establishing SBI by nationalizing the Imperial Bank of India was “to
extend banking facilities on a large scale more particularly in the rural and semi-urban areas and
to diverse other public purposes.”

In 1959, the SBI (Subsidiary Bank) act was proposed and the following eight state-associated
banks were taken over by the SBI as its subsidiaries.

Name of the Bank Subsidiary with effect from

1. State Bank of Hyderabad 1st October 1959

2. State Bank of Bikaner 1st January 1960

3. State Bank of Jaipur 1st January 1960

4. State Bank of Saurashtra 1st May 1960

5. State Bank of Patiala 1st April 1960

6. State Bank of Mysore 1st March 1960

7. State Bank of Indore 1st January 1968

8. State Bank of Travancore 1st January 1960

With effect from 1st January 1963, the State Bank of Bikaner and State Bank of Jaipur with head
office located at Jaipur. Thus, seven subsidiary banks State Bank of India formed the SBI Group.

The SBI Group under statutory obligations was required to open new offices in rural and semi-
urban areas and modern banking was taken to these unbanked remote areas.
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On 19th July 1969, then the Prime Minister, Mrs. Indira Gandhi announced the nationalization of
14 major scheduled Commercial Banks each having deposits worth Rs. 50 crore and above. This
was a turning point in the history of commercial banking in India.

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

In 1969, the Lead Bank Scheme was introduced to extend banking facilities to every corner of
the country. Later in 1975, Regional Rural Banks were set up to supplement the activities of the
commercial banks and to especially meet the credit needs of the weaker sections of the rural
society.

Nationalization of banks paved way for retail banking and as a result there has been an alt round
growth in the branch network, the deposit mobilization, credit disposals and of course
employment.

The first year after nationalization witnessed the total growth in the agricultural loans and the
loans made to SSI by 87% and 48% respectively. The overall growth in the deposits and the
advances indicates the improvement that has taken place in the banking habits of the people in
the rural and semi-urban areas where the branch network has spread. Such credit expansion
enabled the banks to achieve the goals of nationalization, it was however, achieved at the coast
of profitability of the banks.

3) Post-Liberalization Era---Thrust on Quality and Profitability:

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

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structure of the banking industry was of extreme importance, as the health of the financial sector
in particular and the economy was a whole would be reflected by its performance.
The need for restructuring the banking industry was felt greater with the initiation of the real
sector reform process in 1992. the reforms have enhanced the opportunities and challenges for
the real sector making them operate in a borderless global market place. However, to harness the
benefits of globalization, there should be an efficient financial sector to support the structural
reforms taking place in the real economy. Hence, along with the reforms of the real sector, the
banking sector reformation was also addressed.
The root causes for the lackluster performance of banks, formed the elements of the banking
sector reforms. Some of the factors that led to the dismal performance of banks were.

Regulated interest rate structure.

Lack of focus on profitability.
Lack of transparency in the bank’s balance sheet.
Lack of competition.
Excessive regulation on organization structure and managerial resource.
Excessive support from the government.

Against this background, the financial sector reforms were initiated to bring about a paradigm
shift in the banking industry, by addressing the factors for its dismal performance.

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

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 CURRENT SCENARIO

Currently (2009), overall, banking in India is considered as fairly mature in terms of supply,
product range and reach-even though reach in rural India still remains a challenge for the private
sector and foreign banks. Even in terms of quality of assets and capital adequacy, Indian banks
are considered to have clean, strong and transparent balance sheets-as compared to other banks
in comparable economies in its region. The Reserve Bank of India is an autonomous body, with
minimal pressure from the government. The stated policy of the Bank on the Indian Rupee is to
manage volatility-without any stated exchange rate-and this has mostly been true. With the
growth in the Indian economy expected to be strong for quite some time-especially in its services
sector, the demand for banking services-especially retail banking, mortgages and investment
services are expected to be strong. M&As, takeovers, asset sales and much more action (as it is
unraveling in China) will happen on this front in India.

In March 2008, the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak
Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been allowed
to hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any
stake exceeding 5% in the private sector banks would need to be vetted by them. Currently, India
has 88 scheduled commercial banks (SCBs) - 28 public sector banks (that is with the
Government of India holding a stake), 29 private banks (these do not have government stake;
they may be publicly listed and traded on stock exchanges) and 31 foreign banks.

They have a combined network of over 53,000 branches and 17,000 ATMs. According to a
report by ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total
assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5%
respectively

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OVERVIEW OF BANKING:

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

ORGANIZATIONAL STRUCTURE OF BANKS IN INDIA

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

Reserve Bank of India

Commercial Banks Co-operative Banks Development Banks

Nationalized Private Short-term Long-term

credit credit

Agricultural Urban EXIM Industrial Agricultural

Credit Credit

BROAD CLASSIFICATION OF BANKS IN INDIA:

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

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Public sector banks in India

United Bank of India is one of the 14 major banks which were nationalised on July 19, 1969. Its
predecessor, in the Public Sector Banks, the United Bank of India Ltd., was formed in 1950 with
the amalgamation of four banks viz. Comilla Banking Corporation Ltd. (1914), Bengal Central
Bank Ltd. (1918), Comilla Union Bank Ltd. (1922) and Hooghly Bank Ltd. (1932).

Oriental Bank of Commerce (OBC), a Government of India Undertaking offers Domestic, NRI
and Commercial banking services. OBC is implementing a GRAMEEN PROJECT in Dehradun
District (UP) and Hanumangarh District (Rajasthan) disbursing small loans. This Public Sector
Bank India has implemented 14 point action plan for strengthening of credit delivery to women
and has designated 5 branches as specialized branches for women entrepreneurs.

Private Banking In India

It was practiced since the beginning of banking system in India. The first private bank in India to
be set up in Private Sector Banks in India was IndusInd Bank. It is one of the fastest growing
private sector Banks in India. IDBI ranks the tenth largest development bank in the world as
Private Banks in India and has promoted world class institutions in India.

The first Private Bank in India to receive an in principle approval from the Reserve Bank of
India was Housing Development Finance Corporation Limited, to set up a bank in the private
sector banks in India as part of the RBI's liberalisation of the Indian Banking Industry. It was
incorporated in August 1994 as HDFC Bank Limited with registered office in Mumbai and
commenced operations as Scheduled Commercial Bank in January 1995.
ING Vysya, yet another Private Bank of India was incorporated in the year 1930. Bangalore has
a pride of place for having the first branch inception in the year 1934. With successive years of
patronage, the private banks are constantly setting new standards in banking.

The Co Operative Banks In India

It started functioning almost 100 years ago. The Cooperative bank is an important constituent of
the Indian Financial System, judging by the role assigned to co operative, the expectations the co
operative is supposed to fulfill, their number, and the number of offices the cooperative bank
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operate. Though the co operative movement originated in the West, but the importance of such
banks have assumed in India is rarely paralleled anywhere else in the world. The cooperative
banks in India play an important role even today in rural financing. The businesses of
cooperative bank in the urban areas also have increased phenomenally in recent years due to the
sharp increase in the number of primary co-operative banks.

Co operative Banks in India are registered under the Co-operative Societies Act. The cooperative
bank is also regulated by the RBI. They are governed by the Banking Regulations Act 1949 and
Banking Laws (Co-operative Societies) Act, 1965.

Rural Banking In India

It started since the establishment of banking sector in India. Rural Banks in those days mainly
focussed upon the agro sector. Regional rural banks in India penetrated every corner of the
country and extended a helping hand in the growth process of the country.

SBI has 30 Regional Rural Banks in India known as RRBs. The rural banks of SBI are spread in
13 states extending from Kashmir to Karnataka and Himachal Pradesh to North East. The total
number of SBIs Regional Rural Banks in India branches is 2349 (16%). Till date in rural banking
in India, there are 14,475 rural banks in the country of which 2126 (91%) are located in remote
rural areas.

Apart from SBI, there are other few banks which functions for the development of the rural areas
in India. Few of them are as follows.

Haryana State Cooperative Apex Bank Limited

The Haryana State Cooperative Apex Bank Ltd. commonly called as HARCOBANK plays a
vital role in rural banking in the economy of Haryana State and has been providing aids and
financing farmers, rural artisans, agricultural labourers, entrepreneurs, etc. in the state and giving
service to its depositors.

Nabard

National Bank for Agriculture and Rural Development (NABARD) is a development bank in the
sector of Regional Rural Banks in India. It provides and regulates credit and gives service for the
promotion and development of rural sectors mainly agriculture, small scale industries, cottage
and village industries, handicrafts. It also finances rural crafts and other allied rural economic
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activities to promote integrated rural development. It helps in securing rural prosperity and its
connected matters.

Sindhanur Urban Souharda Co-operative Bank

Sindhanur Urban Souharda Co-operative Bank, popularly known as SUCO BANK is the first of
its kind in rural banks of India. The impressive story of its inception is interesting and inspiring
for all the youth of this country.

United Bank of India

United Bank of India (UBI) also plays an important role in regional rural banks. It has expanded
its branch network in a big way to actively participate in the developmental of the rural and
semi-urban areas in conformity with the objectives of nationalisation.

Syndicate Bank

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

FOREIGN BANKS IN INDIA

These always brought an explanation about the prompt services to customers. After the set up
foreign banks in India, the banking sector in India also become competitive and accurative.

New rules announced by the Reserve Bank of India for the foreign banks in India in this budget
have put up great hopes among foreign banks which allow them to grow unfettered. Now foreign
banks in India are permitted to set up local subsidiaries. The policy conveys that foreign banks in
India may not acquire Indian ones (except for weak banks identified by the RBI, on its terms)
and their Indian subsidiaries will not be able to open branches freely. Please see the list of
foreign banks in India till date.

List of Foreign Banks in India

Abu Dhabi Commercial Bank

ANZ Grindlays Bank
Bank of America

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 Bank of Ceylon
BNP
Citi Bank
China Trust Commercial Bank
HSBC
Standard Chartered Bank
Taib Bank
Bank of Nova Scotia
ABN-AMRO Bank
Deutsche Bank
JPMorgan Chase Bank

By the year 2009, the list of foreign banks in India is going to become more quantitative as
number of foreign banks is still waiting with baggage to start business in India.

By 2009 few more names is going to be added in the list of foreign banks in India. This is as an
aftermath of the sudden interest shown by Reserve Bank of India paving roadmap for foreign
banks in India greater freedom in India. Among them is the world's best private bank by
EuroMoney magazine, Switzerland's UBS.

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

Royal Bank of Scotland

Switzerland's UBS
US-based GE Capital
Credit Suisse Group
Industrial and Commercial Bank of China

Merrill Lynch is having a joint venture in Indian investment banking space -- DSP Merrill
Lynch. Goldman Sachs holds stakes in Kotak Mahindra arms.

GE Capital is also having a wide presence in consumer finance through GE Capital India.

India's GDP is seen growing at a robust pace of around 7% over the next few years, throwing up
opportunities for the banking sector to profit from.

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ROLE OF BANKS

Banks play a positive role in economic development of a country as repositories of community’s

savings and as purveyors of credit. Indian Banking has aided the economic development during
the last fifty years in an effective way. The banking sector has shown a remarkable
responsiveness to the needs of planned economy. It has brought about a considerable progress in
its efforts at deposit mobilization and has taken a number of measures in the recent past for
accelerating the rate of growth of deposits. As recourse to this, the commercial banks opened
branches in urban, semi-urban and rural areas and have introduced a number of attractive
schemes to foster economic development.

By pooling the savings together, banks can make available funds to specialized institutions
which finance different sectors of the economy, needing capital for various purposes, risks and
durations. By contributing to government securities, bonds and debentures of term-lending
institutions in the fields of agriculture, industries and now housing, banks are also providing
these institutions with an access to the common pool of savings mobilized by them, to that extent
relieving them of the responsibility of directly approaching the saver. This intermediation role of
banks is particularly important in the early stages of economic development and financial
specification. A country like India, with different regions at different stages of development,
presents an interesting spectrum of the evolving role of banks, in the matter of inter-mediation
and beyond.

Mobilization of resources forms an integral part of the development process in India. In this
process of mobilization, banks are at a great advantage, chiefly because of their network of
branches in the country. And banks have to place considerable reliance on the mobilization of
deposits from the public to finance development programmes. Further, deposit mobilization by
banks in India acquired greater significance in their new role in economic development.

Commercial banks provide short-term and medium-term financial assistance. The short-term
credit facilities are granted for working capital requirements. The medium-term loans are for the
acquisition of land, construction of factory premises and purchase of machinery and equipment.
These loans are generally granted for periods ranging from five to seven years. They also
establish letters of credit on behalf of their clients favoring suppliers of raw materials/machinery
(both Indian and foreign) which extend the banker’s assurance for payment and thus help their
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delivery. Certain transaction, particularly those in contracts of sale of Government Departments,
may require guarantees being issued in lieu of security earnest money deposits for release of
advance money, supply of raw materials for processing, full payment of bills on the assurance of
the performance etc. Commercial banks issue such guarantees also.

The Role of Reserve Bank of India (RBI) – Banker’s Bank

The Reserve Bank of India (RBI) is the central bank of India, and was established on April 1,
1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. Since its
inception, it has been headquartered in Mumbai. Though originally privately owned, RBI has
been fully owned by the Government of India since nationalization in 1949.

RBI is governed by a central board (headed by a Governor) appointed by the Central

Government. The current governor of RBI is Dr.Y.Venugopal Reddy (who succeeded Dr.
Bimal Jalan on September 6, 2003). RBI has 22 regional offices across India. The Reserve
Bank of India was set up on the recommendations of the Hilton Young Commission. The
commission submitted its report in the year 1926, though the bank was not set up for nine years.

Main Objective:

Monetary Authority
Formulates implements and monitors the monetary policy.
Objective: maintaining price stability and ensuring adequate flow of credit to productive
sectors.

Regulator and supervisor of the financial system

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

Manager of Exchange Control

Manages the Foreign Exchange Management Act, 1999.
Objective: to facilitate external trade and payment and promote orderly development and
maintenance of foreign exchange market in India.
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Issuer of currency
Issues and exchanges or destroys currency and coins not fit for circulation.
Objective: to give the public adequate quantity of supplies of currency notes and coins
and in good quality.

Developmental role
Performs a wide range of promotional functions to support national objectives.

Related Functions
Banker to the Government: performs merchant banking function for the central and the
state governments; also acts as their banker.
Banker to banks: maintains banking accounts of all scheduled banks.
Owner and operator of the depository (SGL) and exchange (NDS) for government
bonds.

There is now an international consensus about the need to focus the tasks of a central bank upon
central banking. RBI is far out of touch with such a principle, owing to the sprawling mandate
described above.

LANDMARKS IN INDIAN BANKING INDUSTRY

Changing the face of Indian banking

It is a revolution that that has changed the face of banking in India. The core banking solution
(CBS) enabled the concept of ‘anytime, anywhere’ banking. The concept is all set to evolve from
just being the IT infrastructure automating banking operations to the only way of doing banking
in the future.

CBS has had a dramatic affect on banking in India, as prior to the large Indian banks undergoing
a core banking transformation, branches were the only viable banking channel for both
businesses and consumers. “Worse yet, these resource-constrained channels were localized with
respect to the information that they possessed. For example, if a consumer opened an account at
a branch near their home, that person would not be recognized at other bank branches. This
decentralized model restricted the value of banking. Since most large banks and many other
banks have transformed their back office, anywhere and anytime banking is driving higher levels
of access and value to the end customers,” stated Don Free, Research Director,
Banking/Investments, and Gartner.

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A LANDMARK IN INDIAN BANKING

No other sector has benefited from IT as much as the financial sector, in particular banking. The
process of bank automation started in the 1990s, and since then there has been constant
evolution. The implementation of CBS has been marked by key milestones at every step. Indian
banks have of course had the last mover advantage while their counterparts in Western countries
have been struggling with the challenges of replacing legacy systems.

Free added “The key milestone for Indian banking was the ability to leapfrog technologies—
bypassing the client- server technology era and entering the true multi-channel, Web-based and
mobile banking age.”

The major developments have been anywhere banking, implementation of RTGS (Real Time
Gross Settlement), growth of ATM and Internet banking, e-commerce, faster settlements in
equity and commodity markets and now mobile banking. “It has reduced the dependency of
banks on diverse human efficiency across branches in different regions, thereby standardizing
the quality of service. Enhanced efficiency has increased the competitiveness amongst the banks,
ultimately benefiting the consumer. The risk management capability of banks has also been
scaled up, making them more stable and robust institutions,” said Sanjay Padode, CEO, and
Religare Technova.

Uppili Srinivasan, Senior Vice President & Head-Corporate Banking and Internet Solutions,
Polaris Software, asserted that the keystone of core banking has been the achievements in the
areas of networking and connectivity. Centralizing operations, offering value added services
which ride on top of the core banking framework and outsourcing certain banking processes to
third parties, have been the other major achievements.

Cuts across all types of banks

Irrespective of the size of the bank, the foundation of a successful consumer banking strategy
rests on the core banking technologies that banks have implemented. While large banks have
been able to simplify their back-office, launch products faster and perform better customer
relationship management; the smaller ones have been able to succeed without making heavy
technology investments and redeploying manpower in core operations.
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They can now expand using lesser capital on account of the reach provided by the data
communications network and the ability to automate telling operations. Many small and medium
banks have been consequently expanding rapidly to join the big league. “Earlier, every branch
required substantial capital investment and working capital for establishment, but in today’s time
this has been reduced substantially,” said Padode.

While the public sector banks are largely onboard with the commoditized aspects of core
banking, not all of them have exploited a significant possibilities opened up by this technology.
“The cooperative and the small banks are still quite the laggards in that they continue to grapple
with this challenge at a more fundamental level,” rued Srinivasan.

The number of co-operative

Sector banks implementing CBS has however been increasing by the day with many vendors
now offering CBS with an affordable TCO. Many cooperative banks are leveraging this
opportunity to enhance their businesses and offering customers mobile and Internet banking. “As
some vendors are offering flexible CBS solutions that are modular and parameterized, co-
operative banks have the choice of making a strategic decision on investing in the right solution
that best meets their business needs,” said Murthy Veeraghanta, Co-founder and President, VSoft
Corporation.

Driving the business

CBS has brought about a sea change in the mindset of bankers. Location and geographic
expansion is no longer a prerogative of a select few large, multinational banks. It has opened
several channels of opportunities for innovative thinkers.

“It has been the magic key for the more adventurous and innovative banks in devising their go-
to-market strategy, their customer retention and product pricing strategies and their expansion
plans,” conceded Srinivasan.

Most of the changes that banks have been experiencing relate to these fundamental core banking
functions. Factors necessitating these changes are the forces of competition, productivity and
efficiency of operations, reduced operating margins and the need for better asset liability
management. “The major challenges that banks face are the impact of competition and the falling
margins in the transactions undertaken by them. With wafer-thin profit margins being the order
of the day, the solution to this would lie in increasing volumes well beyond a critical mass so as

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to result in better operating results for banks. This is best achieved by exploiting the benefits of
technology enabled core banking which facilitates handling of increased volumes with higher
levels of efficiency,” asserted Veeraghanta.

Centralization of operations, single-view of all information related to customer accounts and

transactions, faster processes with fewer staff involved have also led to greater customer
satisfaction. Benefits for bank customers

Reduced transaction time and fees

More innovative financial products enhancing the leveraging power of the consumer

Convenience in accessing banking accounts through any branch, ATM, phone or the
Internet.

Reduced dependency on carrying cash thereby enhancing safety

Enhanced competition amongst banks has led to aggressive products giving the ultimate
benefit to the consumer in terms of cheaper loans and higher deposit interest rates

Enhanced risk management capability has given the consumers safer banks and has
empowered regulators to ensure better control on activities of the banking system

FURTHER EVOLUTION

The scope of the banking system is increasing to cover all asset classes which interest the end-
customer for investing. Transaction business has become a significant part of banking topline
and the core banking systems are fast adding functionality to cover insurance, equity, forex,
mutual fund, real estate, art broking, etc. “Going forward, e-payments, asset management and
wealth management will become part of core banking,” pointed out Padode. This apart, many
intermediaries such as brokers will either become or merge with banks and all surviving banks
will incorporate the intermediary function as part of their core operations. All of these changes
will have to be factored in the new core banking systems.

According to Free, “Leading vendors are beginning to ‘decompose’ their banking products into
smaller more granular components. Components that can be reused and configured for differing
business support.” This new approach will usher in an era of high levels of standardization and
multi-vendor service bundles, leading to further increase in bank agility at lower maintenance
costs.

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CBS today is not just about enabling efficiency and cost reduction in banking operations—its
current tag of ‘any’ is all set to be replaced by the term ‘more’, that is, more products and
channels, more options, more real-time information, etc.

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ABOUT HDFC [HOUSING DEVELOPMENT FINANCE CORPORATION
LIMITED]

Helping Indians experience the joy of home ownership.

The road to success is a tough and challenging journey in the dark where only obstacles light the
path. However, success on a terrain like this is not without a solution.
As we found out nearly three decades ago, in 1977, the solution for success is customer
satisfaction. All you need is the courage to innovate, the skill to understand your clientele and
the desire to give them your best.
Today, nearly three million satisfied customers whose dream we helped realise, stand testimony
to our success.
Our objective, from the beginning, has been to enhance residential housing stock and promote
home ownership.
Now, our offerings range from hassle-free home loans and deposit products, to property related
services and a training facility.
We also offer specialised financial services to our customer base through partnerships with some
of the best financial institutions worldwide.

HDFC FOUNDER
Man with a Mission
If ever there was a man with a mission it was Hasmukhbhai Parekh, our Founder and
Chairman-Emeritus, who left this earthly abode on November 18, 1994.
Born in a traditional banking family in Surat, Gujarat, Mr. Parekh started his financial career at
Harkisandass Lukhmidass - a leading stock broking firm. The firm closed down in the late
seventies, but, long before that, he went on to become a towering figure on the Indian financial
scene.
In 1956 he began his lifelong financial affair with the economic world, as General Manager of
the newly-formed Industrial Credit and Investment Corporation of India (ICICI). He rose to
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become Chairman and continued so till his retirement in 1972.
At the ripe age of 60, Hasmukhbhai started his second dynamic life, even more illustrious than
his first. His vision for mortgage finance for housing gave birth to the Housing Development
Finance Corporation - it was a trend-setter for housing finance in the whole Asian continent.
He was a true development banker. His building up HDFC without any government assistance is
itself a brilliant chapter in financial history. His wisdom and warmth drew people from all walks
of life to him, for advice, guidance and inspiration.
A soft spoken man of few words, Mr. Parekh nevertheless held strong and definite views with a
quiet conviction. He was always concerned with building bridges, improving and encouraging
communication between people.
He was also a writer in his own right. There are over 200 published articles by him, full of
incisive comments on finance and economics. In 1953 he brought out a volume called: The
Bombay Money Market. It detailed the intricate working of the Indian money market. His works
in Gujarati - Hirane Patro, Hirane Vadhu Patro - occupy pride of place in Gujarati literature. In
1992, the Government of India honoured him with the Padma Bhushan Award. The London
School of Economics & Political Science conferred on him an Honorary Fellowship.
But there was much more to the man than his financial genius. In his own unassuming way,
Hasmukhbhai devoted all his life to raising resources for philanthropic causes. He was one of the
Founder Members of the Centre for Advancement of Philanthropy, and it’s Chairman till 1993.
He took active interest in the Bombay Community Public Trust, designed specifically to serve
the needs of the city's underprivileged citizens.
When Mr. Deepak Parekh took over as Chairman from Hasmukhbhai, he said: "Taking over
from H.T. Parekh is a formidable task; his vision brought about not only an institution, but an
entire concept which has proved itself to be of lasting importance."
In his last years, developments in the financial sector brought him some measure of satisfaction.
Says ICICI Chairman, N. Vaghul: "The most gratifying aspect about his life is that values he
cherished all his life came into reality in the last years. Opening up the financial sector, and
deregulation of lending rates were issues he stood for all his life and this happened before he
passed away."
As Henry W. Longfellow said:
Lives of great men all remind us
We can make our life sublime,
And, departing leave behind us

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 Foot prints on the sands of time.
HDFC BANK LIMITED - COMPANY PROFILE SNAPSHOT
Company Profile HDFC Bank Limited

Date of Establishment 1994

Exchanges: NYSE

2009 Sales 4,261,400,000

Major Industry Financial

Sub Industry Commercial Banks

Ticker: HDB

Country: India

Headquarter Address HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai -
400013, Maharashtra, India
Employees: 37836

SUBSIDIARIES AND ASSOCIATE COMPANIES

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

BUSINESS DESCRIPTION
The Group's principal activities are to provide banking and other financial services. The Group
operates through four segments: Treasury, Retail Banking, Wholesale Banking and Other
Banking Business. The Treasury Services segment consists of net interest earnings on
investments portfolio of the bank and gains or losses on investment operations. The Retail
Banking segment serves retail customers through a branch network and other delivery channels.
This segment raises deposits from customers and makes loans and provides advisory services to
customers. The Wholesale Banking segment provides loans and transaction services to corporate
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and institutional customers. The Other Banking Operations segment provides services relating to
credit cards, debit cards, third party product distribution and primary dealership business and
other associated costs.

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

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

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

HDFC is a professionally managed organisation with a board of directors consisting of eminent

persons who represent various fields including finance, taxation, construction and urban policy
& development. The board primarily focuses on strategy formulation, policy and control,
designed to deliver increasing value to shareholders.

HISTORY OF HDFC BANK

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

HDFC Bank in 1994

The Bank was incorporated on 30th August. A new private sector Bank promoted by housing
Development Corporation Ltd. (HDFC), a premier housing finance company. The bank is the
first of its kind to receive an in-principle approval from the RBI for establishment of a bank in
the private sector. Certificate of Commencement of Business was received on 10th October 1994
from RBI.

The Bank transacts both traditional commercial banking as well as investment banking. HDFC,
the promoter of the bank entered into an agreement with National Westminister Bank Pc. and its
subsidiaries (NatWest Group) for subscribing 20% of the banks issued capital and providing
technical assistance in relation to the banks proposed banking business.

HDFC Bank in 1995

70 No. of equity shares issued to subscribers to the Memorandum & Articles of Association on
30th August 1994. On the same date 500, 00,000 equity shares were allotted to HDFC
promoters. 509, 20,000 shares were allotted to HDFC Employees Welfare Trust and HDFC Bank
Employees Welfare Trust on 22nd December, 1994.

On 16.1.1995, 90, 79,930 No. of equity shares were allotted to Jarrington Pte. Ltd. Another 400,
00,000 equity shares were allotted on private placement basis to NatWest Group on 9.5.1995.
500, 00,000 shares were allotted to the public on 9.5.95 (all were taken up).

The Bank opened its first branch in Ramon House at Churchgate, Mumbai on January 16th.

The Bank created an efficient operating system using well tested state-of-the-art software.

HDFC Bank in 1996

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HDFC Bank entered the banking consortia of over 50 corporate, including some leading
multinational companies, flagship companies of local business houses and strong public sector
companies.

HDFC Bank set up a state-of-the-art dealing room to handle all transactions possible in Indian
financial markets.

The Certificates of Deposits were awarded a PP1+ rating which is the highest rating for short
term instruments indicating superior capacity for repayment.

HDFC Bank in 1997

The bank is one of the largest mobilisers of retail deposits through its network of 20 branches. Its
credit deposits ratio was 53.8%.

The bank set up an ultra-modern hub at Powai in Mumbai where the bank's central computer is
housed. This hub housed in 35,000 square feet of space, houses data of all the branches and
facilitates the introduction of new products and services.

HDFC installed state-of-the-art systems to facilitate inter-connectivity between branches and link
up with on line system.

The bank also signed up as a depository participant, under the newly set up NSDL, wherein the
members clearing accounts settlement for dematerialised shares can be done through the bank.

HDFC Bank, one of the nine new-generation private sector banks, planned to set up an all-India
on-line automated teller machine (ATM) network.

HDFC Bank proposed to launch tele-banking for the first time in June in Mumbai at its
Chandiveli branch.

HDFC Bank has drawn up plans to become a niche player in corporate banking by sticking to
top-rung corporate.

HDFC Bank becomes the first private sector bank to conclude a structured interest rate option
deal.

HDFC Bank on October 14 introduced ATMs that converse in a regional language.

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HDFC Bank launched an account in all its 28 branches across India that seeks to free depositors
from minimum balance requirement, for the first time in the country.

HDFC Bank in 1998

HDFC Bank tied up with the Ahmadabad Stock Exchange (ASE) to act as its clearing bank.

HDFC Bank proposed to strengthen its branch network in Calcutta with the addition of two new
branches in the first quarter of the next fiscal.

HDFC Bank signed an agreement with the National Stock Exchange (NSE) which will give it a
second charge over the brokers deposit for providing loan against share facility to NSE brokers.

The bank also entered into a similar understanding with the Bombay Stock Exchange (BSE)
whereby the bourse will provide support for recovery of money against the card for loan against
share facility.

The bank also entered into `Cirrus' arrangements by which all master card holders across the
globe will be able to transact at HDFC Bank in India.

The bank provided phone-banking facility in Bangalore. HDFC tied up with Visa International to
offer its Debit Card. - HDFC Bank Ltd entered into a memorandum of understanding for
strategic business collaboration with Chase Manhattan Bank.

HDFC Bank become the first bank in India to link up its automated teller machine (ATM)
network with all the three major payment systems world-wide.

HDFC Bank in 1999

The bank decided to issue 1, 33, 10,000 equity shares of Rs. 10 each to HDFC and a wholly-
owned subsidiary of it at a price of Rs. 94 per share.

The bank also issued 13,70,000 equity shares to India Private Equity Fund and 51,20,000 shares
to Indocean Financial Holding, the two equity funds controlled by Chase Manhattan Bank.

HDFC Bank tied up with BPL Ltd to offer Internet-enabled supply-chain management and
business-to-consumer (B2C) e-commerce services to corporate houses.

Hutchison Max Telecom and HDFC Bank introduced the country's first-ever mobile-banking
services in the city.

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HDFC Bank in 2000

HDFC Bank also signed a memorandum of understanding with Singapore Telecom's e-

commerce arm Sesami.Com Pvt Ltd. - The Bank latter also entered into a partnership agreement
with National Computer Systems, the e-commerce unit of Singtel.

A new company called SESAMi.com (India) had been formed by a strategic alliance between
HDFC Bank and Singapore Telecom's e-commerce company SESAMi.com, to offer e-commerce
solutions for the Indian market.

HDFC Bank had a tie-up with Maxtouch for giving the facility to the latter's customers in
Mumbai. This was the first and only service of this sort in the country.

HDFC Bank launched an online electronic banking solution called Enet which allowed
corporates to access their accounts over the net and carry out trade related transactions and cash
management functions.

HDFC Bank entered into a tie-up with Telco by which the bank would provide preferential
financing options for Tata's range of passenger cars including the Indica, Sumo, Safari, Estate
and Sierra.

HDFC Bank allotted 1.98 crore shares of Rs 10 each at an issue price of Rs 94 per share to
promoters and strategic investors on March 29.

HDFC Bank becomes the first bank in the country to offer wireless application protocol (WAP)
services to customers.

SkyCell Communications Ltd, one of the two cellular service providers in Chennai, launched
`Sky Banking', for which the company tied up with ICICI Bank and HDFC Bank.

The bank tied up with 12 utility companies nationwide including BSES, MSEB, BEST, Orange,
BPL and MTNL.

The Company introduced a new scheme whereby it will provide loans to individuals for payment
of self assessment tax on their properties in Bangalore.

HDFC Bank launched its 123rd outlet at Delhi Stock Exchange building at Asaf Ali Road.

The Bank launched `Freedom - The e-Age Savings Account' for cellular phone users.

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Spice Cell tied up with Citibank N A, HDFC Bank and ICICI Bank for mobile bill settlements.

HDFC Bank and Cosmos Bank launched a co-branded ATM card

HDFC Bank in 2001

The Bank opened its first branch in Aurangabad.

HDFC Standard Life Insurance entered into a memorandum of understanding with the Chennai-
based Indian Bank.

The Bank launched the international Maestro debit card in association with Master Card.

HDFC Bank launched its credit card in June through link-ups with MasterCard and Visa.

LTtrade.com entered into a strategic tie-up with HDFC Bank to provide Net banking services to
online investors.

HDFC Bank launched a new campaign for its ease savings account.

HDFC Bank entered into a strategic tie-up with Tally Solutions Pvt. Ltd. to offer online real time
accounting services to small and medium enterprises.

The Bank opened four ATMs outlets in Bangalore at Coles Road, RT Nagar, Rajaji Nagar and
Jaya Nagar on March 26.

HDFC Standard Life Insurance launched a `Development Insurance Plan' a low cost life
insurance product developed specifically to meet the needs of economically weaker sections.

HDFC Bank in 2002

HDFC Bank unveiled a new online account aggregation service `OneView'.

HDFC launched 'One View' service to customers

HDFC Bank launched its 9th branch in Karnataka.

HDFC opens its branch in Mangalore.

HDFC Bank unveils Silver card in Hyderabad.

HDFC Bank opens first overseas representative office.

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HDFC Bank unveils gold card.

HDFC Bank launched new products to its wealth management programme to increase its
customer base. The bank introduced a non-interactive product named "Financial Planner", which
would be available for all its customers for an annual fee starting from Rs 10,000. The bank is
offering fee based advisory programme to the "mass affluent" segment, which was earlier offered
to high net worth customers. The wealth management programme would cater to individual
needs taking into account various factors such as customer's age, financial goals and risk profile,
which includes equity, MFs and debt instruments such as RBI Relief Bonds.

HDFC Bank in 2003

HDFC Bank unveils resident foreign currency account.

HDFC Bank unveils co-branded credit card with e-Seva.

The Board of Directors of HDFC Bank Ltd at their meeting held on January 15, 2003 approved
the appointment of Mr. Arvind Pande as an Additional Director pursuant to section 260 of the
Companies Act, 1956.

EPFO JV with HDFC Bank for its pension distribution.

HDFC enters into agreement with HDFC Bank to source housing loans.

HDFC Bank, IRCTC in tie up for online railway booking.

HDFC Bank inks pact with ANB for remittance service

HDFC Bank introduces 'HDFC Bank Health Plus Credit Card'.

Uma Krishnan resigns HDFC Bank as country head.

Warburg Pincus sells 2% stake in HDFC for Rs 235 cr

HDFC Bank in 2004

Mr Ranjan Kapur & Mr Bobby Parikh appointed as Additional Directors

NMCE inks pact with HDFC Bank for warehouse receipts. HDFC Bank entered into an alliance
with Clearing Corporation of India Ltd (CCIL). The tie-up offered the latter's collateral

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borrowing and lending obligation (CBLO) product to cooperative banks that are not direct
members of the negotiated dealing system (NDS).

HDFC Bank repurchases HDFC loans worth Rs 208 cr

Andhra Bank entered into an alliance with HDFC Bank for sharing its network of automated
teller machines (ATMs). On March 29, 2004

HDFC Bank and Bahraini Saudi Bank (BSB) announced an alliance to cater to service the needs
of the non-resident Indians (NRIs) in Bahrain.

HDFC Bank launches new scheme for Maruti 800 buyers, providing 85 per cent finance on the
on-road price of the car for seven years.

HDFC Bank wins Asiamoney award for Best Domestic Bank

HDFC Bank in 2005

TMB forges alliance with HDFC Bank

HDFC Bank inaugurates first ATM in Hotel

HDFC Bank ties up with the International Bank of Qatar (IBQ) to launch banking services in
Qatar.

HDFC Bank launches loyalty rewards programme for its debit and credit cardholders under the
name InstaWonderz.

HDFC Bank in 2006

HDFC sets up two more branches in AP

HDFC Bank along with MasterCard International launched credit card targeted at small and
medium-sized enterprises

HDFC Bank tied up with US-based WL Ross and company LLC for investing in corporate
restructuring

HDFC Bank unveils credit card for farmers

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HDFC Bank in 2007

HDFC Bank signed an agreement with Tata Pipes to offer credit facilities to farmers across the
country.

HDFC Bank Ltd appointed Mr. Pandit Palande as an additional Director of the Bank at the Board
Meeting held today i.e. on 24th April 2007.

HDFC Bank Ltd informed that the Board of Directors of the Bank at its meeting held on October
12, 2007, has been appointed Mr. Paresh Sukthankar & Mr. Harish Engineer as Executive
Directors on the Board of Directors of the bank. Mr. Sukthankar & Mr. Engineer have been
senior employees of the Bank since 1994 and have held various positions of responsibility.

ACHEIVEMENTS AND MILESTONES

HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian Bank".
The bank realised that only a single-minded focus on product quality and service excellence
would help it get there. Today, the bank is proud to say that they are well on their way towards
that goal.

It is extremely gratifying that efforts towards providing customer convenience have been
appreciated both nationally and internationally.

However, the company is aware that all these awards are mere milestones in the continuing,
never-ending journey of providing excellent service to our customers. They are confident,
however, that with customer feedback and support, they will be able to maintain and improve our
services.

Following are the achievements that the company has achieved over the past few years.

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2
0
0
9

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41
2008

Finance Asia 'Best Bank and Best Cash Management Bank'

Country Awards for
Achievement 2008

CNN-IBN 'Indian of the Year (Business)'

Nasscom IT User 'Best IT Adoption in the Banking Sector'

Award 2008

Business India 'Best Bank 2008'

Forbes Asia Fab 50 companies in Asia Pacific

Asian Banker Best Retail Bank 2008

Excellence in Retail
Financial Srvices

Asiamoney Best local Cash Management Bank Award voted by Corporates

Microsoft & Indian Security Strategist Award 2008

Express Group

World Trade Centre For outstanding contribution to international trade services.

Award of honour

Business Today- One of India's "Most Innovative Companies"

Monitor Group
survey

Financial Express- Best Bank Award in the Private Sector category

Ernst & Young
Award

Global HR 'Employer Brand of the Year 2007 -2008' Award - First Runner up, &
Excellence Awards - many more
Asia Pacific HRM
Congress:

Business Today 'Best Bank' Award

2007

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 Dun & Bradstreet 'Corporate Best Bank' Award
– American
Express Corporate
Best Bank Award
2007

The Bombay Stock 'Best Corporate Social Responsibility Practice' Award

Exchange and
Nasscom
Foundation's
Business for Social
Responsibility
Awards 2007

Outlook Money & Best Bank Award in the Private sector category.
NDTV Profit

The Asian Banker Best Retail Bank in India

Excellence in
Retail Financial
Services Awards

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

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PRODUCT RANGE OF THE COMPANY

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

ACCOUNTS AND DEPOSITS

Banking should be effortless. With HDFC Bank, the efforts are rewarding. No matter what a
customer's need and occupational status, we have a range of solutions that are second to none.

Whether you're employed in a company and need a simple Savings account or run your own
business and require a robust banking partner, HDFC Bank not only has the perfect solution for
you, but also can recommend products that can augment your planning for the future.

SAVINGS ACCOUNT

These accounts are primarily meant to inculcate a sense of saving for the future,
accumulating funds over a period of time. Whatever your occupation, we are confident that
you will find the perfect banking solution.

Regular  Salary
Savings Plus    Classic 
SavingsMax    Payroll 
No Frills    Regular 
Senior Citizens    Premium 
Retail Trust    Defence
Kids Advantage    Kisan No Frills Savings
Pension Savings  Reimbursement
Family Savings     

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Kisan Club Savings     

CURRENT ACCOUNTS

Now, with an HDFC Bank Current Account, experience the freedom of multi-city banking! You
can have the power of multi-location access to your account from any of our 1412 branches in
528 cities. Not only that, you can do most of your banking transactions from the comfort of your
office or home without stepping out.

We make it our business to help you with your business by offering you a Current Account with
all the benefits you need to stay ahead of your competition.

At HDFC Bank, we understand that running a business requires time and money, also that your
business needs are constantly evolving. That's where we come in. We provide you with a choice
of Current Account options to exclusively suit your business - whatever the size or scope.

Open an HDFC Bank Current Account & control your business operations centrally.

Plus Trade Premium

Regular RFC Domestic Flexi Current 
Apex Max   

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FIXED DEPOSIT

Long-term investments form the chunk of everybody's future plans. An alternative to simply applying for
loans, fixed deposits allow you to borrow from your own funds for a limited period, thus fulfilling your
needs as well as keeping your savings secure.

Regular Fixed Deposit SuperSaver Sweep-In

5 Year Tax Saving Fixed Deposit

DEMAT ACCOUNT

HDFC BANK is one of the leading Depository Participant (DP) in the country with over 8 Lac
demat accounts.

HDFC Bank Demat services offers you a secure and convenient way to keep track of your
securities and investments, over a period of time, without the hassle of handling physical
documents that get mutilated or lost in transit.

HDFC BANK is Depository participant both with -National Securities Depositories Limited
(NSDL) and Central Depository Services Limited (CDSL).

Features and Benefits

As opposed to the earlier form of dealing in physical certificates with delays in transaction,
holding and trading in Demat form has the following benefits:

Settlement of Securities traded on the exchanges as well as off market transactions.

Shorter settlements thereby enhancing liquidity.

Pledging of Securities.

Electronic credit in public issue.

Auto Credit of Rights / Bonus / Public Issues / Dividend credit through ECS.

Auto Credit of Public Issue refunds to the bank account.

No stamp duties on transfer of securities held in demat form.

No concept of Market Lots.

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 Holding / Transaction details through Internet / email.

SECURED & EASY TRANSACTION PROCESSING

HDFC Bank Ltd provides convenient facility called 'SPEED-e' (Internet based transaction)
whereby account holder can submit delivery instructions electronically through SPEED-e
website (https://speed-e.nsdl.com). SPEED-e offers secured means of transaction processing
eliminating preparation of instruction slips and submission of the same across the counter to the
depository participant. The 'IDEAS' facility helps in viewing the current transactions and
balances (holdings) of Demat account on Internet on real time basis.

SAFE DEPOSIT LOCKERS

Looking for a safe storage place for your valuables?

A Safe Deposit Locker with HDFC Bank is the solution to your concern. Located at select
branches in cities all over the country, our lockers ensure the safe keeping of your valuables.

Advantages / Key Benefits

Wide Availability.

Lockers available in various sizes. i.e. Small, Medium, Large and Extra Large with

varying rents.

Lockers are rented out for a minimum period of one year. Rent is payable in advance.

No deposits are required to avail a locker. Just open an account and get the locker facility

OR

The rent may be conveniently paid from your deposit account with us.

Direct debits for locker rentals from your account rid you of the hassles in writing out

cheques.

There is a nominal annual charge, which depends on the size of the locker and the centre

in which the branch is located.

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HDFC Bank Imperia Banking

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

Be it a dedicated Client Relationship Manager, customised investment advisory or exclusive

privileges, Imperia takes care of every little detail to ensure a banking experience like no other.

HDFC Bank Preferred Banking

If you expect more from everything, even your bank, we invite you into the world of exclusive
banking. Where you will never again have to wait to be served. With our HDFC Bank Preferred
Programme, your comfort always comes first.

Ideal for seasoned professionals or businessmen, this programme will provide you with a banker
dedicated to take care of all your banking and investment needs. It also means you get
preferential rates on various banking products and other exclusive benefits.

HDFC Bank Classic Banking

If you want to experience banking beyond the ordinary, our HDFC Bank Classic Programme is
just for you.

Becoming an HDFC Bank Classic customer entitles you to a host of benefits, including a
bouquet of preferentially priced products and specialised Investment solutions.

CARDS OFFERED BY THE BANK

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

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CREDIT CARDS

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

Classic Cards Special Benefit Cards.

Silver credit card value Plus

Premium Cards Commercial Cards.

Gold Credit Card Corporate Platinum Credit Card

Titanium Credit Card Corporate Credit Card
Woman's Gold Card Business Credit Card
Platinum Plus Credit Card
Visa Signature Credit Card
World MasterCard Credit Card.

DEBIT CARDS

What if you could carry your bank account with you? HDFC Bank Debit Cards give you
complete and instant access to the money in your accounts without the risk or hassle of carrying
cash.

Choose from:

C P
l r
a e
s m
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49
s i
i u
c m
C
a C
r a
d r
s d
s

EasyShop International Debit Card EasyShop Gold Debit Card

Specialised Cards

EasyShop International Business Debit Card

EasyShop Woman's Advantage Debit Card

EasyShop NRO Debit Card

Kisan Card

EasyShop Pro Gold Debit Card

PREPAID CARDS

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

ForexPlus Cards  GiftPlus Cards 

Prepaid Travel Card - to manage your overseas Prepaid Gift Card - Gift the freedom of choice!
expenses.

FoodPlus Cards  MoneyPlus Card 

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 Prepaid FoodPlus Card - Freedom from The Corporate Payment Card - Freedom from
cumbersome meal vouchers. cash disbursement / administrative hassles.
LOANS OFFERED BY THE BANK.

Haven't you occasionally dreamt of buying a PC, a car of your choice or even travelling abroad?
Your dreams are now within your reach. Whatever your need, we offer an entire range of loan
products.

Personal Loans

A wedding in the family. Maybe your house needs renovation? Our range of Personal Loans
brings you one step closer to your dreams.

SmartDraft

Need additional funds? SmartDraft offers you an easy-to-use overdraft facility of up to 3 times
your salary

Home Loans

Get the home of your dreams - with a little help from us.

Two Wheeler Loans

With flexible payment options and easy repayment, our Two Wheeler Loan offers the perfect
excuse to purchase that bike you've always wanted.

New Car Loans

With flexible payment options and easy repayment, our Two Wheeler Loan offers the perfect
excuse to purchase that bike you've always wanted.

Gold Loans

With HDFC Bank's Gold Loan, you can get an instant loan against your gold jewellery and
ornaments. The procedure is simple, documentation is minimal and approval is quick.

Educational Loans

Bridging the gap between you and higher education.

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ACCESS YOUR BANK

Wherever you are, your bank is always accessible. Experience total control and convenience
with our range of innovative services.

NetBanking

NetBanking lets you manage your account from the comfort of your mouse - anytime, anywhere.

Credit Cards online

Access your Credit Cards account anytime, anywhere.

Phone Banking

Your phone is now tour Bank.

InstaAlerts

Get regular updates on your bank account on your mobile phone or email ID.

MobileBanking

Access your bank account and conduct a host of banking transactions and inquiries through your
mobile, with our unique MobileBanking service.

ATM

24-hour access to cash, view mini-statement, order cheque books, recharge your prepaid card...
all from our wide network of over 1200 ATMs.

Email Statements

HDFC Bank introduces Email Statements for all its Savings & Current account holders.

Branch Network

Our sophisticated computerised network gives you the flexibility of accessing your Savings or
Current Account from any of our over 1416 branches and over 3382 ATMs across India.

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HDFC BANK LTD. - FINANCIAL RESULTS (INDIAN GAAP)

A VIEW OF THE BALANCE SHEET

All amounts in millions except per share amounts.

03/2008 03/2007 03/2006 03/2005

(TTM) (TTM) (TTM) (TTM)
ASSETS
Cash and Due from Banks 3,678.40 1,868.80 1,606.10 861.50
Restricted Cash 0.00 0.00 0.00 199.40
Fed. Funds Sold/Securities Purchased 0.00 0.00 94.40 0.00
Interest-Bearing Dep at Other Banks 0.00 0.00 0.00 0.00
Investment Securities, Net 13,307.50 7,059.00 6,147.90 4,683.50
Loans 18,193.10 12,639.10 10,158.40 5,960.02
Unearned Premiums 0.00 0.00 0.00 0.00
Allowance for Loans and Lease Losses 318.40 185.90 1,271.90 80.02
NET LOANS 17,874.70 12,453.20 8,886.50 5,880.00
Premises and Equipment 348.90 241.20 195.90 162.40
Due from Customers Acceptance 0.00 0.00 0.00 0.00
Trading Account Securities 60.10 99.40 66.20 29.30
Other Receivables 0.00 0.00 0.00 0.00
Accrued Interest 282.30 365.30 194.80 112.60
eferred Acquisition Cost 0.00 0.00 0.00 0.00
Accrued Investment Income 0.00 0.00 0.00 0.00
Separate Account Business 0.00 0.00 0.00 0.00
Time Deposits Placed 147.90 297.40 0.00 0.00
Intangible Assets 0.00 0.00 0.00 0.00
Other Assets 1,981.20 1,123.40 590.80 209.20

TOTAL ASSETS 37,681.00 23,507.70 17,782.60 12,137.90

LIABILITIES
Non-Interest Bearing Deposits 7,178.00 4,589.40 3,307.60 2,437.10
Interest Bearing Deposits 17,957.20 11,242.30 9,221.70 5,897.20
Short Term Debt 3,235.30 2,215.10 1,701.40 1,423.20
Other Liabilities 3,984.70 2,515.00 1,735.70 134.00
Bankers Acceptance Outstanding 0.00 0.00 0.00 0.00
Fed. Funds Purchased/Securities Sold 1,099.50 243.60 0.00 0.00
Accrued Taxes 0.00 0.00 0.00 0.00
Accrued Interest Payables 418.30 395.30 185.80 1,000.00

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 Other Payables 0.00 0.00 0.00 0.00
Capital Lease Obligations 0.00 0.00 0.00 0.00
Claims and Claim Expense 0.00 0.00 0.00 0.00
Future Policy Benefits 0.00 0.00 0.00 0.00
Unearned Premiums 0.00 0.00 0.00 0.00
Policy Holder Funds 0.00 0.00 0.00 0.00
Participating Policyholder Equity 0.00 0.00 0.00 0.00
Separate Accounts Business 0.00 0.00 0.00 0.00
Minority Interest 11.50 7.50 5.00 0.00
Long Term Debt 816.70 779.60 382.80 115.30

TOTAL LIABILITIES 34,701.20 21,987.80 16,540.00 11,006.80

STOCKHOLDER'S EQUITY
Preferred Stock Equity 0.00 0.00 0.00 0.00
Common Stock Equity 2,979.80 1,519.90 1,242.60 1,131.10
Common Par 88.60 74.10 70.40 71.00
Additional Paid In Capital 1,766.00 701.30 602.60 591.20
Cumulative Translation Adjustment 0.00 0.00 0.00 0.00
Retained Earnings 776.30 568.50 411.10 295.10
Treasury Stock 0.00 0.00 0.00 0.00
Other Equity Adjustments 348.90 176.00 158.50 173.80
Foreign Currency Adjustments 0.00 0.00 0.00 0.00
Net Unrealized Loss/Gain on Investments 0.00 0.00 0.00 0.00
Net Unrealized Loss/Gain on Foreign Cur 0.00 0.00 0.00 0.00
Net Other Unearned Losses/Gains 0.00 0.00 0.00 0.00

TOTAL EQUITY 2,979.80 1,519.90 1,242.60 1,131.10

BRIEF SUMMARY

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

BUSINESS UPDATE

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

TO SUM UP

To conclude the above made analysis we can quite easily see that over the past few years the
financial position of the bank has moved up in a positive direction. There has been growth in
assets while as liabilities have been kept under control. This indicates the fact that the bank has
been able to meets its requirements without any difficulty. The bank has also gained recognition
as is quite evident from the fact that the number of deposits has increased significantly. There
has been increase in the number of credit and debit cards issued which provides support to the
fact that the bank is growing day by day. The spending power of the organisation is improving
year by year as is clear from the data relating to retained earnings. The bank has greater money at
its disposal which uses for gaining additional assets and strengthen its base. The bank also uses
the additional money for promotional purposes so that it can compete with its core competitors.
In short the bank is progressing very rapidly and is almost on the verge of becoming the best in
the market.

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GRAPH CHART INDICATING FINANCIAL STATUS

From the
graph
above it
follows
that the
company
over a
period of
six (6)
years has
been

successfully been able to pay dividend to its shareholders consistently. The very fact speaks
about the financial health of the company. A company pays out dividend if it gains sufficient
profits so as to meet the requirements of the organisation as well as its members. This means that
the company has been consistently been on the path of growth and success. Also that the
earnings per share has been increasing at an increasing rate signifies the fact that the company’s
shares have been valuing more with each passing year and thus adding to the growth and profits
of the organisation.

FUTURE PLANS

In the future, HDFC Bank plans a major thrust in the area of e-commerce. It plans to get into
both Business to Business (B to B) and Business to Customer (B to C) areas of e-commerce.
The Banks' strategy in the area of B to B is in three directions:
Sesami - (JV with Singapore Telecom, with a 40% stake of HDFC bank), where it will be setting

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up India's first truly B to B horizontal portal catering to E-Procurement, E-Auction and Supply
Chain Management for corporates. The Cash Management /Settlement for this portal would be
through HDFC Bank. Sesami India, due to linkage into Sesami Singapore is an inter-operable
portal due to their connectivity into BTT (UK), NTT (Japan), Marketsite.NET (USA), OPTUS
(Australia), etc. Additionally, this portal would be able to integrate with several other verticals
that are being set up in the country adding functionality and settlement mechanisms.

ENet - (Corporate Internet banking) where corporates can access their account relationships
(CC/OD, Trade, Bills, Foreign Exchange and Cash Management) through the Net and where
they can link up their suppliers through their back office ERP's and arrange for online settlement
of funds. ENet will closely integrate with Sesami for the funds settlement and will act as the Net-
based front end.

Settlement Bank for other E-com portals: Besides targeting corporates, the bank will facilitate
settlements of other E-Com portals coming up in the country that do not wish to link up with
Sesami. This is a huge segment considering the B to B business projections in Asia and India.
In the B to C area, the Bank has plans for a shopping mall. The bank will be setting up the first
online payment gateway in the country, in association with a subsidiary of SingTel (National
Computer Systems, Singapore) which will facilitate card payments for virtual transactions
thereby providing acquiring Bank services to other portals.
The bank also plans to set up an e- brokerage. The bank is the largest Clearing Bank to Stock
Exchanges in the country (NSE, BSE, CSE, DSE, ASE, HSE, and OTCEI) and has over 250,000
depository accounts. With the e-brokerage services, the bank will offer all the services required
to facilitate equity investments. Additionally, we would handle the payments (funds & securities
transfers from DP accounts) for other e-Brokerages being set-up in the country.

HDFC Bank to relocate branches to un-banked rural Punjab

HDFC Bank, after the merger with the Centurion Bank of Punjab, has chalked out a plan to
relocate about 25-30 branches in rural Punjab to tap the unbanked areas. The bank aims to
strengthen its distribution network by focusing on agriculture, commodity and retail business.

Sharing details about the future plan with FE, Govind Pandey, regional head- north, HDFC Bank
said, “We have acquired over 100 branches of Centurion Bank of Punjab in Punjab and Haryana

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through merger. But in order to reach out to the interiors we are relocating branches in rural
Punjab. We are also mapping the mandis in different districts as potential sites. Surveys are on
for finalising the new sites and relocation phase will start within the next 3 months. The
integration of systems of both the banks has already started and it is likely to be complete within
a month or so.”

HDFC Bank has achieved its target of opening new branches for this year with the inauguration
of a new branch in Chandigarh on Friday. This takes the count to 29 branches in Chandigarh,
Panchkula and Mohali Region. The bank now has about 130 branches in Punjab with over 50%
branches located in semi-urban and rural areas. Anticipating a further rise in the repo rate by RBI
by last week of July, HDFC bank is also gearing up to fight inflation. Govind added further,
“RBI is expected to increase the repo rate hence the interest rates will also go up. This correction
does slow down the growth of the banks but we are confident of achieving our growth target of
over 50% by the end of this fiscal year.”

HDFC Bank plans to open 300 new branches in India

Indian private sector bank HDFC Bank plans to open 300 new branches in the fiscal year 2009-
10, according to reports.

Currently, HDFC operates 1,412 branches and 3,295 ATMs in 528 cities in the country. With the
addition of the new locations the total branch count would increase to 1,712.

According to reports, the bank has obtained necessary regulatory approval to open the new
branches.

DETAILS RELATED WITH ACTUAL SOURCE OF DATA

The project that I had undertaken was of two folds. One was related to “service quality
management” and the other was “Client Profiling-Preferred customers”. Both the projects were
very challenging but I was able to get through both of them quite easily mainly due to the
guidance of my project guide and other members of the organisation.

I would first like to through some light on the topic related to Client Profiling which is related to
Preferred banking.

PREFERRED BANKING

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

THE PREFERRED PROGRAMME

The Preferred program has been designed to take care of the most profitable customers of the
bank. Currently since profitability data at customer level is not available, the liabilities
relationship balance is being used as a surrogate for profitability. Existing large value customers
will be upgraded into the Preferred program as and when they reach the required threshold to
enter the program.

The objectives of the Preferred program are:

Enhance the size of the relationship that the Preferred customers have with the bank.

Thus growth over the current relationship value remains the foremost objective.

Deepen the relationship by cross selling as many of the bank’s products and services to

the Preferred customers. This will result in higher loyalty and greater profitability of

these relationships.

Provide the best possible service to these customers. Thus each Preferred relationship

will have a Relationship Manager to take care of all service needs.

Through a process of referrals from existing Preferred customers and through targeted

programs on select customer databases, acquire new Preferred customers into the

program.

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BENEFITS AVAILABLE TO PREFERRED CUSTOMERS
The following benefits will be available to all Preferred customers:

All Preferred customers will have a dedicated Relationship Manager to look after their

relationship. The role of the RM will be to offer all products and services of the bank to the

customers and make it easy for the customers to avail of these services. The RM will also be

responsible to take care of all servicing needs to the Preferred customers.

Special price offs or discounts on products and services. The list below provides the discounts

available

Product Benefits to Preferred

All Preferred customers can open multiple Demat a/cs with the
annual Folio Maintenance charges waived

This waiver is available even if all the Demat a/cs are linked in
to a single SA a/c.
Demat account
The FMC charges will be waived from 2nd year onwards also
provided the account is funded with shares within the first year

Transaction charges are levied at 0.03% instead of 0.04% charged

to regular customers

All Preferred customers can avail of the HDFC Bank Preferred

Gold Debit Card for free as long as they are part of the
programme

Debit Card Women's Advantage Gold Debit Card is FREE as long as the
customer is a part of the Preferred programme

Normal Debit Card is free for lifetime with enhanced limits

Credit Card Customer can avail of a credit card with annual fees waived as

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 long as they are part of the programme. Card to be issued as per
eligibility

Annual Locker rental rates are reduced by 50% for Preferred

Locker
customers

Forex 8 paisa better rates

At Par Chequebook Free by default

All customers will receive a combined statement at a monthly

Combined Monthly frequency.

Statement The statement will provide details of all CASA and FD a/cs
where the customer is the 1st holder.

Bill Pay Free

Insta Alert Free

Service charges (Non

maintenance of AQB Waived as long as the customer is part of Preferred programme
charges)

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

Transactions on any
Free
non HDFC Bank ATM

Self/Third party Cash

deposit / Withdrawal at No limit for SB a/c's.
non home branches

Preferred customers can enjoy the convenience of anytime,

Free e-age banking anywhere banking via free Net Banking, Mobile Banking and
Phone Banking

Standing Instructions Free

HSL Discounted a/c opening at Rs.399

Gold Bars On Purchase of 5g-3%, 8g/10g/20g/50g – 5.25%

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 Service Charge waivers Up to Rs.2000 waiver on select charges. Facility of flexi-waiver
for following to waive higher amounts with approval, depending on group
transactions profitability

Cheque pick-up facility Free

Customers can nominate funding/ beneficiary accounts and link

CASA sweep-in facility
accounts in the group

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

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

Charges included in his list below:

S.No Item S.No

1. DD/MC charges 7. Hold mail charges

2. Interbranch funds transfer charges 8. Duplicate statement

3. Stop payment charges 9. Certificate of balance

4. Cheque return charges 10. FIRC

5. Cheque collection charges 11. Recovery of old records

6. DD cancellation charges

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ELIGIBILITY FOR ENTRY INTO THE PREFERRED PROGRAM

1. Following is the criteria to be eligible for the program

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

In case more than one customer is being grouped into a single relationship, then the grouping
should be as per the rules defined later in the product paper.

Note:

For the purpose of arriving at the relationship size for a single customer or a group

comprising of multiple customers, only those accounts in which the Customer(s) is/are the

first holder(s) should be considered i.e. The Customer ID necessarily has to be the first

holder Customer-ID

Once a customer has been grouped under one relationship, the same customer cannot form

part of another relationship.

At the time of entry of a Group into the Preferred program, all CASA accounts being

aggregated to arrive at the qualifying criteria should have been with the bank for one full

quarter. Even if one account has not been with the bank for one full quarter and is being

considered to reach the qualifying criteria, then the case needs to be approved as an exception

by the CH.

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 In case multiple FDs belonging to a Group are being aggregated to arrive at the qualifying

criteria, then all FDs need to be of tenors of at least 6 months. In case even if a single FD is

of a tenor less than 6 months then an exception approval needs to be obtained from the CH.

The RM and the BM who fill up and approve the Program Entry Form have to verify the

eligibility is as per the above criteria. The approval of CH has to be taken for any exceptions

on eligibility for racing the customer.

The entry into the Preferred program will be as per the criteria defined above. All relationships
will be continuously monitored every quarter to ensure that at least one of the eligibility criteria
is always satisfied by that relationship or group i.e. At least one of the eligibility criteria with
respect to SB, CA or Fixed Deposits has to be met.

GROUPING
Rules for grouping

S.No Entity satisfying

Who can be grouped?
. the entry criteria

1. Individual Spouse, children, father, mother, brother, sister

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

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

4. Pvt. Ltd. Company All Directors in their individual capacity and their family members
as per the grouping criteria for individuals

5. HUF The Karta and Co-parceners in their individual capacity

6. Trust/society None of the trustees and members of the society can be grouped

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Other conditions
The Customer ID of the main member in the group should be assigned as the Group ID.

Even if there is a single Customer ID in a group, it should be assigned as the Group ID

for the single Customer ID.

A maximum of 10 Customer ID’s can form part of a group, beyond which CH approval

is required.

A Customer ID cannot form part of 2 groups in its capacity as the first account holder id

e.g. If Customer ID C1 is part of group G1, then all accounts where C1 is the fist holder

can only be included in group G1. However, in case C1 is a joint holder in some

account, then that can be grouped in a different group.

Cases not satisfying the above grouping criteria need to be referred to the CH and the

BM for exception approval

Only one RM will service all members of a group

As stated in the section on eligibility criteria, the relationship size can be met at a group level. In
case the branch would like to induct a particular relationship/group that does not meet the entry
criteria into the Preferred program then the CH needs to approve the case as an exception.

Important
The Waiver of Rs. 2,000/ per annum on service charges will be available at a group level
All Customer ID’s within a group will enjoy the price discounts as available under the
program

Identification of customer
The Primary responsibility of identifying potential or qualifying customers for the Preferred
Program lies with the Relationship Managers.

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In addition to the RM’s identification of Potential/Qualifying customers, a list of
customers/accounts qualifying for the above program (by Branch), but not yet inducted into the
program will be put up by the Product team (HNW Help) at the beginning of each quarter after
AQB is computed. This will act as a trigger for the RM to race more customers into his portfolio.

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

To race a customer into the program the RM has to send the following forms duly
completed to the CPU:

Profiling Form for every individual customer ID in the Group

Profiling Form for every non-individual entity in the Group
Preferred Program Entry Form
Exception sign off from the CH wherever Relationship Size criteria is not met
Exception sign off from the Product Group wherever Grouping criteria is not met
Debit Card application from for the Preferred Gold Debit Card

In case any of the above forms are not sent or are incomplete, CPU will not race the
customer into the Preferred program.

On racing the customer into the Preferred program, the following updations/activities will get
triggered

The customer IDs belonging to the Group will be raced as Preferred OR Deemed Preferred
by CPU
Group ID will be populated for all customer IDs belonging to the Group by the CPU

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

Branch activities Post racing

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

Ongoing review of Customers in the Preferred program

All customers who have been raced into the program in a particular Quarter will be given the
next 2 full quarters to build /grow the relationship above the minimum criteria. A quarter is
defines as a calendar quarter i.e. Apr-June, Jul-Sep, Oct-Dec and Jan-March. Thus if a Group is
raced into the program mid-way through a quarter, that quarter will be ignored and the first full
quarter will commence from the next quarter.

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After the initial two full quarters, the relationship will be reviewed every quarter to ensure that
the minimum criteria are being maintained.

Incase the customer is not fulfilling the programme criteria, the following steps need to be
undertaken:

The RM will counsel the customer at the end of the first quarter in which the minimum
criteria of the program is not met after the initial first 2 quarters. The objective of the
counselling is to inform the customer that if the criteria are not met in the next
consecutive quarter, the facilities under the Preferred program will be withdrawn.
The RM will have to follow the deracing process and ensure that a caution letter is sent
to the customer.
The relationship is then reviewed only after a minimum of one full calendar month basis
the AMB post sending the caution letter sent to the customer.
If the customer still does not meet the eligibility criteria, then the process of deracing is
initiated by the BM, as per the Deracing Process which is available on the Branch Sales
Portal.

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

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

MIS for Reviewing and assisting racing

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

Process of exiting a customer from the program

The RM will have to send the Exit Form to CPU so that the customer can be exited from the
Preferred program. This form will also have to be signed by the Branch Manager.

To derace customers from the programme, the deracing process has to be followed. The same
has been uploaded on the Branch Sales Portal.

Based on the Exit request received from the Branch, the following actions will be triggered:

CPU will remove the Preferred race from all customer IDs belonging to the Group
The combined statement race will be removed so that all customers in the Group will stop
getting monthly statements and start getting quarterly statements from that quarter
The accounts belonging to the Group will get levied the min AQB charges from the same
quarter in case the accounts do not maintain the required product AQBs.
All preferential pricing and offers will be withdrawn from the customer.
The services of the Relationship Manager will be stopped.

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

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Ethnic codes

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

Treatment of existing portfolio

Customers in existing portfolio will be treated as explained in the below example:

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

Waivers and Flexi-Waivers

Waiver and Flexi-waiver will be at Group level

Standard waiver will be Rs 2,000/

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

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LOOK OF THE PROFILE SHEET PROVIDED BY THE ORGANISATION

WHICH WAS USED AS A BASE FOR QUESTIONING PREFERRED CLIENTS

INDIVIDUAL PROFILE INFORMATION

Group ID…………………………………Customer ID………………………………………….

Name………………………………………………………………………………………………

Tel(R)……………………………………..Tel(O)………………………………………………..

Mobile No………………………………..E-mail ID………………………………………………

Date of Birth………………………………………………..

Please tick mark the relevant boxes

Gender ……….Male Female

Martial status………Married Single

Education…………Undergraduate Graduate Postgraduate Doctorate Professional

Occupation………..Salaried Self –Employed Professional Business Retired

Student Others

Type of company you work in………….Proprietorship Partnership Public Ltd

Private Ltd Govt. Sector

Vehicle owned…………..4 wheeler 2 wheeler Both

Main Bank ……………HDFC BANK Pvt. Sector Bank Foreign Bank Purchased

against a loan

Bank 1…………………………………….Bank 2……………………………………………

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Bank 3……………………………………Bank 4……………………………………………..

Relation ship managers code and sign………………………………………………………

CUSTOMER RELATIONSHIP ANALYZER

Primary Customer ID…………………………………….

Primary Customer ID……………………………………..

No of Customers in Group………

RMs Name…………………………. Date of Preparation

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

PRODUCT
Y/N

DEMAT
HSL Account

Mutual Funds

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 Online Mutual funds

Advisory

Has the customer availed of:

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

Does the customer hold a credit card (Y/N)………….If yes is it active(Y/N)………..

Does the customer have term deposit with us(Y/N)………….

How many of his family members have the term deposits with us…………….

Does the customer /any of his family members have insurance with us? (Y/N)…………..Have

all his family members availed of an insurance policy through us(Y/N)………….

Does the customer have loan product(Y/N)………….

Based on the sensitivity of the relationship and the profile of the customer, define desired

frequency of contact

Daily Weekly Fortnightly Monthly

USEFULNESS OF THE INFORMATION

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The job that I had been given by the organisation was to call out these prestigious customers of
the bank and gather relevant information regarding them. The organisation was updating the
profile of its preferred customers so that it could know their current financial status and other
personal details. The purpose of the study was to gather enough information so that the same
could be used by the organisation in providing relevant services and products to its preferred
clients so as to keep them satisfied and loyal to the company.

The organisation gave me this information so that I could understand how beneficial and
important such clients were to the bank. Also that I might need to share relevant information
with the clients while talking to them, the organisation handed over this information to me.

In fact, the above information came in handy when many customers asked me about need for
profiling and grouping. Had the organisation not given me the required notes I would definitely
not been able to complete my required project.

The second project undertaken by me was “Service Quality Management”. The basic motive of
this project was to know the satisfaction level of the preferred customers banking with the
organisation. Since they were special to the organisation, hence the organisation thought of doing
survey so that any discrepancy or dis-satisfaction among the preferred clients could be removed.

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SERVICE QUALITY

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

The dimensions of service quality

Because business services are intangible and nonstandardized, buyers tend to have greater
difficulty in evaluating services than in evaluating goods. The inability to depend on consistent
service performance and quality may lead service buyers to experience' more perceived risk. As
a result, buyers utilize a variety of prepurchase information sources to reduce risk. Information
from 'a current user (word of mouth) is particularly important. In addition, the evaluation process
for services tends to be more abstract, more random, and more heavily based on symbology
rather than on concrete decision variables.

Research provides some valuable insights into how customers evaluate service quality. From the
below table we can know that customer focus on five dimensions in evaluating service quality:
reliability, responsiveness, assurance, empathy, and tangibles. Among these dimensions,
reliability- delivery on promises- is the most important to customers. High quality service
performance is also shaped by the way in which the service is provided by frontline service
personnel. To the customer, service quality represents a responsive employee, who can inspire
confidence and one who adapts -to _the unique needs or preferences of the customer- and
delivers the service in a professional manner.

In fact the performance of the employee who is in contact with the customer may compensate for
temporary service quality problem. By promptly acknowledging the error and responding
quickly to the problem, the service employee may even strengthen the firm’s relationship with
the customer.

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Customer Satisfaction and Loyalty

Four components of a firms offering and its customer linking processes affect customer
satisfaction.

The basic elements of the product or service that customers expect all competitors to
provide
Basic support services, such as technical assistance or training that makes the product or
service more effective or easier to use.
A recovery process for quickly fixing product or service problems
Extraordinary services that so excel in solving customers' unique problems or in

Leading service firms carefully measure and monitor customer satisfaction because it is linked to
customer loyalty and, in turn, to long-term profitability.

Zero Defections

The quality of service provided to business customers has a major effect on customer
“defections"-customers who will not come back. Service strategists point out that Customer
defections have a powerful impact on the bottom line. As a company's relationship with a
customer lengthens, profits rise-and generally rise considerably.

For example, one service firm found that profit from a fourth-year customer is triple that from a
first-year customer. Many additional benefits accrue to service companies that retain their
customers: They can charge more, the cost of doing business is reduced, and the long-standing
customer provides "free" advertising. The implications Ire clear: Service providers should
carefully track customer defections and recognize that continuous improvement in service
quality is not a cost, an investment in a customer who generates more profit than the margin on a
one time sale.

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FINDING OUT THE AWARENESS OF THE SRVICES BEING OFFERED
TO PREFERRED CLIENTS

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

It would help us to study as to what is the frequency of foot fall of various kinds of account
holders at the branch, what are the major issues for which they visit the branch and actually how
far is the branch form their home etc. In the later part of the questionnaire we kept questions that
would motivate people to enroll for the service on the spot, thus the purpose was to check for
awareness, educate customers about the service and motivate them to enroll for the same. The
questions were devised in such a manner that the satisfaction level of the clients could also be
known.

The questionnaire was mainly to target the walk ins at the branch and the people who already
have a bank account with HDFC Bank as otherwise the service will not make any sense to non
account holders.

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The questionnaire that as used is given below:-

 HOW OFTEN DO YOU VISIT THE BRANCH?

A) Daily B) Weekly C) Fortnightly D) Monthly

 HOW DID YOU COME TO KNOW ABOUT HDFC BANK?

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

 HOW DO YOU RATE YOUR EXPERIENCE WITH HDFC BANK?

A) Good B) Average

 WHAT ATTRACTS YOU MOST TOWARDS HDFC BANK?

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

Service

 WITH WHICH PRODUCT OF HDFC ARE YOU ASSOCIATED WITH?

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

Other

 ARE YOU SATISFIED WITH THE CURRENT PRODUCTS AND SERVICES

BEING PROVIDED TO YOU BY THE BANK?

A) Yes B) No

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 ARE YOU SATISFIED WITH THE AFTER SALE SERVICE OF THE
PRODUCTS BEING DELIVERED TO YOU?

A) Yes B) No

 HOW DO YOU RATE THE QUERY HANDLING/PROBLEM SOLVING

PROCEDURE OF HDFC BANK?

A) Excellent B) Good C) Average D) Below Average

 HOW DO YOU RATE HDFC WITH REGARDS TO THE OTHER BANK(S) YOU
HAVE BANKED WITH [IF ANY]?

A) Excellent B) Good C) satisfactory D) Same

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 ANALYSIS AND INTERPRETATION

 HOW OFTEN DO YOU VISIT THE BRANCH?

20% 0%
Daily
Weekly
Fortnightly
55%
25% Monthly

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

 HOW DID YOU COME TO KNOW ABOUT HDFC BANK?

25% 15% Advertisement

Branch

Internet
15%
45%
Friends

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

 HOW DO YOU RATE YOUR EXPERIENCE WITH HDFC BANK?

13%

Good
Average

87%

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

 WHAT ATTRACTS YOU MOST TOWARDS HDFC BANK?

30 % 30 %

Query Hand.

Products

Easy Access
20 %
20 % Cust. Service

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

 WITH WHICH PRODUCT OF HDFC ARE YOU ASSOCIATED WITH?

30% 15% Fixed Deposits

Saving A/C

Current A/C
18%
37%
Other

A large number of individuals were holding the savings account. All of them were of the view
that they want to save for a rainy day.” One never knows when you need cash immediately and
in lump sum”, said one customer. However, there were also many current account holders who
were primarily businessman. Some of them also had done fixed deposits.

 ARE YOU SATISFIED WITH THE CURRENT PRODUCTS AND SERVICES

BEING PROVIDED TO YOU BY THE BANK?

15%

YES
NO

85%

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A number of individuals were quite happy with the services and products offered by the bank.
However, some 15% individuals complained that their needs were not being fully filled by the
current products and demanded additional services to be offered. Their grievances were recorded
and brought before the management.

 ARE YOU SATISFIED WITH THE AFTER SALE SERVICE OF THE

PRODUCTS BEING DELIVERED TO YOU?

13%

YES
NO

87%

Almost a greater proportion of the individuals were happy with the after sale service being
offered to them. Some were so angry that they threatened to close ties with the bank. They
complained that they had applied for the credit cards but it had been 3 months and still they
hadn’t got it. There were other issues too which the 13% of the unsatisfied individuals
complained.

 HOW DO YOU RATE THE QUERY HANDLING/PROBLEM SOLVING

PROCEDURE OF HDFC BANK?

10%
20%

Excellent

Good

15% Average
55%
Below Avg.
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With regards to query handling and problem solving, almost all the customers were happy with
the way their queries were being solved and that too in due time. Only a few customers gave
negative feedback which is negligible with regards to the overall feedback.

 HOW DO YOU RATE HDFC WITH REGARDS TO THE OTHER BANK(S) YOU
HAVE BANKED WITH [IF ANY]?

20% 10%
Excellent

Satisfactory

10% Good
60%
Same

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

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 RECOMENDATIONS

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

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

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

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

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

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

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

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

Awareness On the net

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

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 CONCLUSION

The banking scenario has changed drastically. The changes which have taken place in the last ten
years are more than the changes took place in last fifty years because of the institutionalisation,
liberalisation, globalisation and automation in the banking industry.

Indian banking system has several outstanding achievements to its credit, the most striking of
which is its reach. Indian banks are now spread out into the remote corners of our country. In
terms of the number of branches, India’s banking system is one of the largest in the world.
According to the Banker 2004, India has 20 banks within the world’s top 1000 out of which only
6 are within the top 500 banks.

Today banking sector is marked by high customer expectations and technological innovations.
Technology is playing a crucial role in the day to day functioning of the banks. These banks that
have harnessed and leveraged technology best have a strategic advantage. To face competition it
is necessary for banks to absorb the technology and upgrade their services.

In today’s context banks are following the strategy of “relationship banking” which is need of
the hour. The customer services are playing a very significant role in banking business. In India
major events leading to deregulation, liberalisation and privatisation have unleashed forces of
competition, making the banks run for their business, not only to create the customer, but more
difficult to run for their business, not only to create the customer, but more difficult to retain the
customer. Prompt and efficient customer service, thus, has become very significant. Relationship
banking is the new paradigm for survival and success, embracing a ‘share of customer’ approach
to growth by identifying, protecting and expanding customer relationship.

Commercial banks are coming up with more and more vacancies, and the banking sector now
has more new jobs than any other sector. Right from the branch level to the highest level, there is
tremendous range of opportunities available in the sector. Jobs in this sector can be both
rewarding and enjoyable, as you get opportunities to learn about business, interact with people
and build up clientele. Both government and private players are currently offering a plenty of
jobs in this sector. So, this is great news for all those who are thinking to go into the banking
streams.

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 BIBLIOGRAAPHY

http://www.info.shine.com/company/HDFC-Bank-Ltd/133.aspx.

http://www.hdfcbank.com/personal/accounts/default.htm.

http://www.hdfcbank.com/personal/customer_center/offers_deals.htm.

http://www.hdfcbank.com/common/customer_center.htm.

http://www.pppinindia.com/financing.asp.

http://indiancorporateworld.com/hdfc.html.

http://www.hdfcbank.com/personal/default.htm.

http://www.hdfcbank.com/personal/investments/default.htm.

http://www.hdfcbank.com/personal/access/default.htm.

http://www.hdfcbank.com/aboutus/awards/Corporate_Governance_Rating.htm.

http://ww11w.moneycontrol.com/india/mutualfunds/mfinfo/05/29/detsnapshot/imdesc/H
DFC%20Top%20200%20Fund%20(G)/ffdesc/HDFC%20Asset%20Management%20Co.
%20Ltd./imid/MZU009/imffid/HD.

http://www.marketwatch.com/investing/stock/HDB/profile.

http://www.marketwatch.com/investing/stock/HDB/analystestimates.

http://www.tradingmarkets.com/hpad/index.cfm?purl=/.site/news/Stock
%20News/2431073/.

http://pulse.alacra.com/analyst-comments/HDFC_Bank_Limited-C1052559.

http://www.infolanka.com/org/diary/212.html.

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