Professional Documents
Culture Documents
PROJECT REPORT
AT
(Industry Integrated)
TO
BY
Dr.Rejimon Thomas
STUDENT’S DECLARATION
I here by declare the Project Report conducted at
BANGALORE
Dr.Rejimon Thomas
Degree of
MASTER OF BUSINESS
ADMINISTRATION
(INDUSTRY INTEGRATED)
TO
MADURAI KAMARAJ UNIVERSITY,
MADURAI
It is my original work and the same has not been submitted for the award of my MBA.
CONTEN
CHAPTER 1 INTRODUCTION
1.1 General introduction about the sector.
Bibliography…………
ACKNOWLEDGEMENT
I extend my special gratitude to our beloved director Dr. Pattabhiram and Dean, Project Guide to Dr.
Rejimon Thomas, NIAM Training Officer Lila Mam for inspiring me to take up this project.
I wish to acknowledge my sincere gratitude and indebtedness to my project guide Dr. Rejiman Thomas
of Ramaiah Institute of Management Studies, Bangalore for her valuable guidance and constructive
I extend my gratitude to ING VASYA BANK LTD. And the manager Mr. Santanu Banerjee (Branch
Head),Mr.Basabraj (Seals Manager) and all my colleagues, friends for their encouragement, support,
guidance and assistance for undergoing industrial training and for preparing the project report.
CHAPTER- 1
MR. Roshan Kumar Shaw
HDFC Bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its
Registered its office in Mumbai, India. The Bank commenced operations as a Scheduled
The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive
An 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private
Sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994.
Headquartered in Mumbai, HDFC Bank, has a network of over 531 branches spread over 228
Cities across India. All branches are linked on an online real-time basis. Customers in over 120
Locations are serviced through Telephone Banking. The Bank also has a network of about over
1054 networked ATMs across these cities. HDFC Bank's ATM network can be accessed by all
Domestic and international Visa / MasterCard, Visa Electron / Maestro, Plus / Cirrus and
American Express Credit / Charge cardholders. Now, LORD KRISHNA BANK & CENTURIAN
HDFC Bank has won many awards for its excellent service. Major among them are "Best Bank
In India" by Hong Kong-based Finance Asia magazine in 2005 and "Company of the Year"
Years old. The main functions of a bank are to accept deposits and grant loans. There are evidences of
These functions being performed by a section of the community in the Vedic periods. There are many
References of Debt in the Vedic Literature. During the Ramayana and Mahabharata eras banking,
Which was a side businesses during the Vedic period, became a full-time business activity for the
People. During the Smriti period, which followed the Vedic period and the Epic age, bankers performed
The functions of the modern banks. The banking business was carried on by the members of the Vaish
Community and Manu speaks of earning through interest as the business of Vaishyas.
Loans from corporations or large businesses, as opposed to normal individual members of the public
(Retail banking). as in the Indian banking.. The most prominent on our minds in the context of banking
these days, perhaps, are the implications arising out of the Basel II accord. Banks, as we all know, are
Subjected to more intense regulation as compared to the non-financial firms. This is probably because
the banks possess certain 'special' characteristics: Banks are much more leveraged than the other
Firms due to their capacity to garner public deposits. The asset - liability structure of the banks is also
Different from not only the non-financial firms but also the financial firms. To illustrate, the risk in an
Insurance company arises mainly from the liability side of the balance sheet in the form of insurance
claims whereas for the bank the risk mainly comes from the diminution of asset values (for example,
Reflecting on future prospects in banking, immediate focus has to be on the cleaning up of the
credit system. It is also necessary to ensure improvements in their governance and financial
management. In the banking system as a whole, a healthy credit culture encompassing appropriate
The Reserve Bank of India has, in the service of our country, a proven track record and professionalism, which
have lent it considerable credibility - both domestically and globally. This credibility enables the RBI to
confidently carry the reforms forward to credibly maintain price and financial stability, while enabling self-
The Indian financial sector is ready for consolidation, said 95 per cent of the respondents. Given the increased
competition, and the implementation of Basel II norms in the near future, the banking industry of the country
would be better off with six to seven banks as big as State Bank of India, said the survey. However, voluntary
A majority of the public sector banks also demanded more autonomy to fix salary levels proportionate to
packages at all levels, the survey said. About 92 per cent of the public sector banks respondents voiced that
they do not have sufficient autonomy to offer attractive incentive packages to employees to ensure commitment
levels. Some banks also said that in one-year's time, banks should be permitted to issue preference shares.
According to the survey, some of the strengths of the banking industry are regulatory systems, economic growth,
CHAPTER-2
PROFILE OF THE ORGANIZATION
HDFC Bank began operations in 1995 with a simple mission: to be a ‘World-class Indian Bank’.
We realize that only a single-minded focus on product quality and service excellence would help us
get there.
It's been a long journey since then and the Bank has grown in size and stature to encompass every
area of present-day banking activity and has carved a distinct identity of being India's Premier Private
Sector Bank.
In 1980, the Bank completed fifty years of service to the nation and post 1985; the Bank made rapid
strides to reach the coveted position of being the number one private sector bank. In 1990, the bank
completed its Diamond Jubilee year. At the Diamond Jubilee Celebrations, the then Finance Minister
Prof. Madhu Dandavate, had termed the performance of the bank ‘Stupendous’. The 75th anniversary,
the Platinum Jubilee of the bank was celebrated during 2005.
Promoter
HDFC is India’s premier housing finance company and enjoys an impeccable track record in India as
well as in international markets. Since its inception is 1977, the Corporation has maintained a
consistent and healthy growth in its operations to remain a market leader in mortgages. Its outstanding
loan portfolio covers well over a million dwelling units. HDFC has developed significant expertise in
retail mortgage loans to different market segments and also has a large corporate client base for its
housing related credit facilities
Business Focus
HDFC Bank’s mission is to be a World-Class Indian Bank. The Bank’s aim is to build sound customer
franchises across distinct businesses so as to be the preferred provided of banking services in the
segments that the bank operates in and to achieve healthy growth in profitability, consistent with the
bank’s risk appetite. The bank is committed to maintain the highest level of ethical standards,
professional integrity and regulatory compliance. HDFC Bank’s business philosophy is based on four
core values: Operational Excellence, Customer Focus, Product Leadership and People.
Capital Structure
The authorized capital of HDFC Bank is Rs.450 crore (Rs.45 billion). The paid-up capital is Rs282
crore(Rs.28.2 billion). The HDFC Group holds 24.2% of the bank’s equity while about 13.1% of the
equity is held by the depository in respect of the bank’s issue of American Depository Shares
(ADS/ADR Issue). The Indian Private Equity Fund, Mauritius (IPEF) and Indocean Finical Holdings Ltd.,
Mauritius (IFHL) (both funds advised by J P Morgan Partners, formerly Chase Capital Partners)
together hold about 5.5% of the bank’s equity. Roughly
27.5% of the equity is held by FIIs, NRIs,/OCBs while the balance is widely held by about 2,14,000
shareholders. The shares are listed on The Stock Exchange, Mumbai and the National Stock
Exchange.
Distribution Network
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over 553
branches spread over 210 cities across the country. All branches are linked on an online real-time
basis. Customers in 90 locations are also serviced through Phone Banking. The Bank’s expansion
plans take into account the need to have a presence in al major industrial and commercial centers
where its corporate customers are located as well as the need to build a strong retail customer base for
both deposits and loan products. Being a clearing/settlement bank to various leading stock exchanges,
the Bank has branches in the centers where the NSE/BSE have a strong and active member base.
The Bank also has network of over 1069 networked ATMs across these cities. Moreover, HDFC Bank’s
ATM network can be accessed by all domestic and international Visa/Master Card, Visa
Electron/Maestro, Plus/Cirrus and American Express.
Management
Mr.Jagdish Capoor took over as the bank’s Chairman in July 2001, Prior to this, Mr.Capoor was a
Deputy governor of the Reserve Bank of India.
The Managing Director, Mr.Aditya Puri, has been a professional banker for over 25 years. And before
joining HDFC Bank in 1994 was heading Citibank’s operations in Malaysia.
The Bank’s Board of Directors is composed of eminent individuals with a wealth of experience in public
policy, administration, industry and commercial banking. Senior executive representing HDFC are also
on the Board Senior banking professionals with substantial experience in India and abroad head
various businesses and functions and report to the Managing Director. Given the professional expertise
of the management team and the overall focus on recruiting and retaining the best talent in the
industry, the bank believes that its people are a significant competitive strength.
Technology
HDFC Bank operates in a highly automated environment in terms of information technology and
communication systems. All the bank’s branches have connectivity which enables the bank to offer
speedy funds transfer facilities to its customers. Multi-branch access is also provided to retail
customers through the branch network and Automated Teller Machines (ATMs).
Business Profile
HDFC Bank caters to a wide range of banking services covering both commercial and investment
banking on the wholesale side and transactional/ branch banking on the retail side. The bank has three
key business areas:-
wide range of commercial and transactional banking services, including working capital finance, trade
services, transactional services, cash management, etc. the bank is also a leading provided of
structured solutions which combine cash
management services with vendor and distributor finance for facilitating superior supply chain
management for its corporate customers. Based on its superior product delivery / service levels and
strong customer orientation, the Bank has made significant inroads into the banking consortia of a
number of leading Indian corporate Sector companies. It is recognized as a leading provider of cash
management and transactional banking solutions to corporate customers, mutual funds, stock
exchange members and banks.
The products are backed by world-class service and delivered to the customers through the growing
branch network, as well as though alternative delivery channels like ATM’s Phone Banking, Net
Banking and Mobile Banking.
The HDFC Bank preferred program for high net worth individuals, the HDFC Bank plus and the investment
Advisory Services programs have been designed keeping in mind needs of customers who seek distinct financial
solutions, information and advice on various investment avenues. The Bank also has a wide array of retail loan
products including Auto Loans, Loans against marketable securities, Personal Loans and Loans for Two-
wheelers. It is also a leading provided of Depository Services to retail customers, offering customers the facility
to hold their investments in electronic form.
Member Chairperson
Chairman
Mr.B.S.Mehta Independent 14 9 5
Mr.D.M.Sukthankar Independent 5 2 1
Mr.D.N.Ghosh Independent 3 1 1
Dr.S.A.Dave Independent 10 8 2
Mr.S.Venkitaramanan Independent 3 1 0
Mr.N.M.Munjee Independent 14 9 4
Mr.D.M.Satwalekar Non-Executive 6 2 2
Chairman
General Managers
Savings Accounts
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. Open an account in your name or register for one jointly with a family member today.
An easy-to-operate savings account that allows you to issue cheques, draw Demand Drafts and withdraw cash.
Check up on your balances from the comfort of your home or office through NetBanking, PhoneBanking and
MobileBanking.
Need money urgently? Withdraw cash from any of the 1977ATM centres spread across the country.
1. Wide network of branches and over thousand ATMs to meet all your banking needs no matter where you
are located.
2. Bank conveniently with facilities like NetBanking and MobileBanking- check your account balance, pay
utility bills or stop cheque payment, through SMS.
3. Never overspend- Shop using your International Debit Card that reflects the actual balance in your
savings account.
4. Personalised cheques with your name printed on each cheque leaf for enhanced security.
5. Take advantage of BillPay, an instant solution to all your frequent utility bill payments. Instruct for
payment over the phone or through the Internet.
6. Avail of facilities like Safe Deposit Locker, Sweep-In and Super Saver facility on your account.
8. Free Payable-at-Par chequebook, without any usage charges upto a limit of Rs.50,000/- per month.
9. Free InstaAlerts for all account holders for lifetime of the account.
10. Free Passbook facility available at home branch for account holders (individuals).
Eligibility
4. If you are a Foreign National residing in India, you may open a Savings Account by temporarily attaching
an undertaking (QA 22 form), stating sources of credit and a copy of your Residence Permit.
Upto Rs. 50,000 pm - No charges, Above Rs. 50,000 - Rs. 2.90 per 1000 on full amount.
Rs.100 at Branch, Rs.50 per statement through Phonebanking (Non-IVR) & ATM, Rs.30 per
statement through Netbanking, Phonebanking (IVR), & Mobilebanking.
Free
Rs 100/-
Rs. 50
Upto Rs. 10,000 Rs. 40 (Senior Citizens / Individuals in Rural areas)
Rs. 30 through Phonebanking
Above Rs. 1 Lakh Rs. 2 per 1000 or part thereof (Min Rs. 250 & Max Rs. 5000)
(*Third Party Registration required.Customers registered for Third Party Transfers have a
maximum limit of 5 lacs per cust id and hence can issue multiple DDs of 1 lacs upto 5 lacs
and send it to the benefiacry address)
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