International Journal of Business Administration and Management.

ISSN 2278-3660 Volume 7, Number 1 (2017),

© Research India Publications http://www.ripublication.com

Training and Development scenario at HDFC Bank

Jyoti
Ph.D Scholar (Management)
(2014-2017)
K alinga University, Raipu r, C.G.
En r ol l me n t No. 1 5 0 8 6 4 1 8 ( K U0 0 2M MX I V0 2 0 10 5 9 6)

Abstract

The HDFC Bank has regular ly been focusing on t he t raining o f it s

emplo yees, bot h ont he- jo b as well as t hrough t raining programmes
conduct ed by int er nal and ext ernal facult y. T he bank list s and recognizes
it s human resources as one o f it s st at ed core values. T he Bank has built a
st rong t raining infrast ruct ure, which seeks t o upgrad e skill levels across
grades and funct io ns t hrough a co mbinat io n o f in - house and ext er na l
programmes. The flagship in - house programmes include t he I nduct io n
Programmes for new ent rant s and Credit and Foreign E xchange
Programmes for building up a pool of sp ecia list s in t he respect ive
domains. E xt ernal Programmes enco mpass value -added programmes o n
Team Building and Leader ship, Organizat io nal Development , Management
Develo pment Programmes, People Management Programmes; al l
conduct ed by pr emier inst it ut es like t he IIMs, Administ rat ive St aff
Co llege of I ndia ( ASCI) and ISB Hyder abad. Senior funct ionar ies have
also been deput ed over seas t o at t end specialized programmes int ended t o
keep t hem updat ed on develop ment s in t he wor ld econo my. T his st ud y
aims at analys ing t he t raining and development pract ices in HDFC bank.

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 International Journal of Business Administration and Management. ISSN 2278-3660 Volume 7, Number 1 (2017),
© Research India Publications http://www.ripublication.com

1. Introduction

The HDFC Bank was pro mot ed by t he Housing Development Finance

Corporat ion, a premier housing finance company o f I ndia (set up in 1977)
wit h an init ial share capit al o f Rs. 100 millio n. At present HDFC Bank
has o ver 2500 br anches and o ver 3000 ATMs in o ver 550 cit ies in I ndia;
and all br anches of t he bank are linked on an o nline r eal -t ime basis.
Init ia lly, Housing Development Finance Corporat io n L imit ed or HDFC
was fo unded in 1977 by Rav i Maur ya and Hasmukhbhai Par ekh. It is an
Indian Non- Banking Finance Corporat ion (NBFC) focusing on ho me
mort gages. HDFC's dist r ibut ion net work spans 243 out let s t hat include 49
offices o f HDFC's dist r ibut ion co mpany, HDFC S ales Pr ivat e Limit ed. To
cat er to non-resident Indians, HDFC has an o ffice each in Lo ndon and
Dubai; and ser vice associat es in Kuwait , Oman, Qat ar, Shar jah, Abu
Dhabi, Al Kho bar, Jeddah and Riyadh in S audi Ar abia.

The bank believes in empower ing it s emplo yees and const ant ly t akes
var ious measures t o achieve t his. T he Human Resources (HR) agenda o f
t he bank aims t o creat e a t eam o f empowered emp lo yees -or ient ed for t he
realizat io n of bank's vis io n. Dur ing it s life span, t he key human resource
issues t hat were addressed relat ed t o lear ning a nd skill development ,
management o f per for mance, ensur ing an enhanced work - life balance and
att rit io n management . T he emp lo yee engagement init iat ives o f t he bank
are focused on provid ing opport unit ies t o st aff t o seek as operat ional ro les
t hrough int ernal jo b post ings and per iodic jo b rot at ions, making t he
co mpensat io n st ruct ure more co mpet it ive, st reamlining t he per for mance -
linked rewards and incent ives, and gener ally sending a clear message o f
mer it ocrac y.

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International Journal of Business Administration and Management. ISSN 2278-3660 Volume 7, Number 1 (2017),
© Research India Publications http://www.ripublication.com

2 Objectives and Research Methodology

Objectives of study:

1. To st udy t he pro file o f HDFC Bank

2. To explore .t he HRM pract ices being fo llo wed at HDFC Bank
3. To analyze t he Training and Development (T&D) scenar io at HDFC
Bank.

Research Methodology

It is always import ant to be cr it ical o f t he infor mat io n pr es ent ed in

sources, especia lly since t he mat er ial might have been gat her ed t o address
a differ ent problem area. Moreover, many secondar y sources do not
clear ly descr ibe issues such as t he purpose o f a st udy, how t he dat a has
been gat hered, analysed and int er pr et ed making it difficult for t he
resear cher t o assess t heir usefulness. I n order to address t his proble m I
have t r ied to t riangulat e t he seco ndar y dat a by using numerous
independent sources.

The infor mat io n about t he problem is collect ed fro m t he Resear c h

Journals, Trade Magazines, Annual Report s of Banks and t he I nt ernet . For
evaluat ing t he T &D pract ices be ing fo llo wed at HDFC bank , I have
focused on as recent mat er ial as possible. In order t o get access t o t he
T&D pract ices be ing fo llowed in t his bank, I have explor ed a number o f
art icles published in academic jour nals and t rade magazines. We have also
used seco ndar y infor mat io n fro m I nt ernet based discussio n forums.

3. HDFC Bank Profile

The Housing Development Finance Corporat ion Limit ed (HDFC) was

amo ngst t he fir st to receive an ‗in pr inc iple‘ approval fro m t he Reser ve
Bank o f I ndia (RBI) to set up a bank in t he pr ivat e sect or, as part of RBI ‘s

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 International Journal of Business Administration and Management. ISSN 2278-3660 Volume 7, Number 1 (2017),
© Research India Publications http://www.ripublication.com

liber alisat ion o f t he I ndian Banking I ndust r y in 1994. T he bank was

incorporat ed in August 1994 in t he name o f 'HDFC Bank Limit ed', wit h it s
regist ered o ffice in Mumba i, I ndia. HDFC Bank co mmenced operat ions as
a Scheduled Co mmer cial Bank in Januar y 1995.

The r eport published in sit e o f NDTV Pr ofit 1 st at es t hat t he HDFC Bank

was incorporat ed on August 1994 by t he name o f 'HDFC Bank Limit ed',
wit h it s regist er ed office in Mumbai, India. HDFC Bank co mmenced
operat ions as a Scheduled Co mmercial Bank in Januar y 1995. T he
Housing Develo pment Finance Corporat ion (HDFC) was amo ngst t he fir st
to receive an 'in pr inciple' approval fro m t he Reser ve Bank o f I ndia ( RBI)
to set up a bank in t he pr ivat e sect or, as part of t he RBI 's libera lizat io n o f
t he Indian Banking I ndust r y in 1994.

HDFC Bank is headquart ered in Mumba i. The Bank at present has an

enviable net work of o ver 1416 branches spread over 550 cit ies across
India. All branches are linked o n an online real –t ime basis. Cust o mers in
over 500 lo cat ions are also ser viced t hrough Telepho ne Banking. T he
Bank also has a net work of about over 3382 net worked ATMs across t hese
cit ies.

The pro mot er of t he co mpany HDFC was incept ed in 1977 is I ndia's

premier housing finance co mpany and enjo ys an impeccable t rack record
in I ndia as well as in int er nat io nal market s. HDFC has developed
significant expert ise in ret ail mort gage lo ans t o d iffer ent market segment s
and also has a large corporat e client base for it s housing relat ed credit
facilit ies. Wit h it s exper ience in t he financial market s, a st rong market
reput at ion, large shareho lder base and unique consumer fr anchise, HDFC
was ideally posit io ned t o promot e a bank in t he I ndian environment .

1
NDTV Profit website, http://profit.ndtv.com/stock/hdfc-bank-ltd_hdfcbank/reports, accessed in August
2016

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International Journal of Business Administration and Management. ISSN 2278-3660 Volume 7, Number 1 (2017),
© Research India Publications http://www.ripublication.com

Figur e 1: Profit aft er Tax o f HDFC Bank

Source: Annual Report HDFC Bank 2015 - 16

4. Human Resource Management Policies and Practices at

HDFC Bank

HDFC Bank uses a co mprehensive human resources po lic y fr amework to

respond t o changing human r esources requirement s. Rapid growt h in a
burgeoning new market should be t he cause for celebrat io n, unless t he
organizat io n t hat 's growing can't keep up wit h t he demands o f an
expanding workforce or simp lify t he management o f mu lt iple dat abases.
But Mumba i based HDFC Bank did not let t hat happen. I nit ially, t he
premier bank in t he corporat e sect or, HDFC Bank began it s expansio n int o
t he ret ail market in 1995 and has added t housands o f new cust omers each
day and managed dramat ic incr eases in it s ret ail lo an port fo lio.

The bank faced t he challenges t hat came wit h rapid success. HDFC Bank
has est ablished it self as a leader in eliminat ing t he inefficienc y
t radit io nally associat ed wit h resource planning and management , and bank
management knew just what t o do. Due t o significant growt h in t he
number o f it s e mplo yees over t he past few year s, t he bank could no lo nger
handle it s human capit al management on Microso ft Excel spreadsheet s and
ho me grown report s. In addit io n, t he management well under st ood t hat

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 International Journal of Business Administration and Management. ISSN 2278-3660 Volume 7, Number 1 (2017),
© Research India Publications http://www.ripublication.com

high growt h rat es might have jeopardized it s capacit ies and ser vicing
qualit y, while t ensio n about relat ive compensat ion levels bet ween t he
sales personnel in t he branch and operat ions could have t hreat ened HDFC
Bank's cult ure. T he bank has also imple ment ed Oracle Human Resources
applicat io ns so t hat human resource planning and t racking could be
handled more effic ient ly. T he bank had already co mpiled large amount s o f
dat a about it s emplo yees, but it lacked a workable way t o store ot her
kinds o f infor mat ion, such as dat a about family me mber s and career pat hs
at HDFC Bank.

The b ank can now cap ture ever ything, w hich g ives senior management b etter
data for per for mance evaluations and help s them d o better career p lanning.
The s olution als o allows the bank to compensate on the b as is of per formance
and pr ovide targ eted car eer d evelopment, which r ais es cred ib ilit y w ith
emp lo yees and helps the b ank attract and r etain top cand idates. HDFC Bank
has als o imp lemented Or acle's app licatio ns for human r es our ces analys is and
rep orting acr oss the enterpr is e, pr ovid ing management w ith the ab ility to
dr ill d ow n into p er for mance and cos t on an exceed ing ly g ranu lar level. This
gave the bank the flex ib ilit y to tailor - made emp lo yee record keep ing w h ile
maintaining r egu lar comp liance w ith labour laws. In add ition to the
automation of actions such as war nings, e -mail notifications, and vacation
hour balances g ives the bank a comp lete profile for each emp lo yee. The
ex isting compr ehens ive rep or ting capab ilities save a lot of staff time and
allow the b ank to hand le pr ofiles, s kill sets, and training and integrate them
with the p ayr oll s ystem.

5. Training and Development Scenario at HDFC Bank

The HDFC Bank has regular ly been focusing on t he t raining o f it s

emplo yees, bot h on t he- jo b as well as t hrough t raining programmes
conduct ed by int er nal and ext ernal facult y. T he bank list s and recognizes
it s human resources as one o f it s st at ed core values. T he Bank has built a
st rong t raining infrast ruct ure, which se eks t o upgrade skill levels across

40
 International Journal of Business Administration and Management. ISSN 2278-3660 Volume 7, Number 1 (2017),
© Research India Publications http://www.ripublication.com

grades and funct io ns t hrough a co mbinat io n o f in - house and ext er na l

programmes. The flagship in - house programmes include t he I nduct io n
Programmes for new ent rant s and Credit and Foreign E xchange
Programmes for building up a pool of specia list s in t he respect ive
domains. E xt ernal Programmes enco mpass value -added programmes o n
Team Building and Leader ship, Organizat io nal Development , Management
Develo pment Programmes, People Management Programmes; al l
conduct ed by pr emier in st it ut es like t he IIMs, Administ rat ive St aff
Co llege of I ndia ( ASCI) and ISB Hyder abad. Senior funct ionar ies have
also been deput ed over seas t o at t end specialized programmes int ended t o
keep t hem updat ed on develop ment s in t he world econo my.

The bank also has a co mprehensive e- learning module concept ualized and
developed inhouse and administ er ed t hrough t he int ranet . Keeping pace
wit h t he growt h in t he diversit y o f product s on t he one hand and
manpower on t he ot her, t he t raining man - day shave increased fro m 57,317
in 2008-09 t o 65,378 dur ing t he year 2009 -10 , regist er ing a growt h o f
14% over t he years.

R Padmanabhan, senior vice -president , HR, lear ning and development ,

HDFC Ban k, sa ys t he t r ick in managing a successful programme is t o do
―more wit h less‖. So impact ing more emplo yees effect ively, wit hout
spend ing t oo much is t he answer t o successfu l t raining. T he key t o
effect ive t raining funct ion, he adds, is act ive part icipat io n by all st ake
ho lders, including lear ning manager s, HR managers and lear ner ‘s
manager s. Senior leader s are act ively engaged at ever y st age, r ight fro m
need ident ificat ion, concept ualis ing t he t raining programmes...and while
conduct ing sessio ns. At HDFC Bank — wit h it s induct io n, on-boarding
and behavioural t raining programmes like se r vice excellence and
leader ship programmes for var ious levels — emplo yees are mapped t o a
t raining manager and t he lear ning graph of a ll emplo yees is t racked wit h

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 International Journal of Business Administration and Management. ISSN 2278-3660 Volume 7, Number 1 (2017),
© Research India Publications http://www.ripublication.com

updat es available t hrough int ranet . The exer cise ensures t hat al l
concer ned part icipant s inve st t ime and effort in t he t racking process.

HR managers or t he t eam t hat assesses training needs in an organisat io n

and designs and manages such programmes must remember t hat while t he
main ingredient s of a t raining module ma y remain const ant , t he
met hodology used needs t o evo lve cont inuously given t he pace at whic h
t echno logy is evo lving.

6. Conclusion

The HDFC Bank focuses on t raining o f it s emplo yees on a co nt inuous

basis, bot h on t he jo b and t hrough t raining programmes conduct ed b y
int er nal and ext er na l facult y. T he Bank has consist ent ly believed t hat
broader emp lo yee ownership o f it s shar e has a posit ive impact on it s
per for mance and emplo yee mot ivat ion.

Pr ior it izing senior it y over per for mance is not a good pract ice fo r
att ract ing t he best t alent in a co mpet it ive environment . However,
recruit ment pract ices as well as o n-t he jo b t raining and redeplo yment are
considered as one o f t hose many improvement s o f HR in t he I ndian banks.

In nut shell, it can be said t hat T&D po licies and pract ices o f t he select ed
bank in t he above background concent rat ed on t raining and deve loping,
and mot ivat ing emp lo yees t o work for ensur ing t hat t hese po licies are
proper ly designed and implement ed, t her eby helping t he workers t o set
and achieve individual and organisat ional goals.

7. References

1. Annual Report HDFC Bank 2015 -16.

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International Journal of Business Administration and Management. ISSN 2278-3660 Volume 7, Number 1 (2017),
© Research India Publications http://www.ripublication.com

2. Donavan Whyt e (2016), ―Training trends for 2016‖,

h t t p s: / / w w w . t r a i n i n g j o u r n a l . c o m/ b l o g / t r a i n i n g - t r e n d s - 2 0 1 6 -0 .

3. Dr. K. Kart hike yan, R. Kart hi (2010), ―I mpact of Training in I ndia n

Banking Sect or – An E mpir ical I nvest igat io n‖, I nt ernat io nal Jour nal
of Business and Management Vo l. 5, No. 7, pp.77 -83.

4. Dr. S. Shahul Hameed, J. Rajinikanth (2014), ―A Conceptual Study on Training

and Development Programs of Bank Employees‖, International Journal of
Advance Research in Computer Science and Management Studies, Vol 2 No. 5,
pp. 80-85.

5. ht t ps://t rainingmag.co m/5 -t rends- fut ure- learning-and-development

6. ht t ps://www.ukessays. co m/essays/ management /t raining - and-

development - in- icic i- bank- management -essay.p hp.

7. Kavit a Rani, Diksha Garg (2014), ― A St udy on Training and

Develo pment in Public S ect or Banks‖, Int ernat io nal Journal o f
Management and Social S ciences Resear ch. Vo l 3 No.1, pp. 33 -36.

8. Madhuri Gupta, KavitaAggarwal (2012), ―Talent Management Strategy: A Study

of Private Banks In India‖, Asian Journal of Multidimensional Research, Vol 1
No.4, pp 30-58.

9. Mr s. B.Vijaya laks hmi Mur t hy ( 2013 -201 5), ―Innovat ive HR Pr actices in
IT Industr y I n I ndia - An E mp ir ica l Study‖, Minor UGC Spons or ed
Res ear ch Pr oject.

10. NDTV Profit website, http://profit.ndtv.com/stock/hdfc-bank-

ltd_hdfcbank/reports, accessed in August 2016

11.R. Suhasini, Dr. T. Sugant halakshmi (2015), ―E mer ging Trends i n

Training and Deve lopment ‖, I nt ernat io nal Journal o f Scient ific and
Research Publicat io ns, Vo l 5, No. 3, pp. 1 -10.

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International Journal of Business Administration and Management. ISSN 2278-3660 Volume 7, Number 1 (2017),
© Research India Publications http://www.ripublication.com

12. Sontakke Rajratna Laxmanrao (2015), ―An Analytical Study on Training and
Development Practices in Public Sector Banks‖, Indian Streams Research Journal,
Vol4 No. 12, pp. 1-7.

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