PROJECT REPORT ON

“A STUDY ON FINANCIAL ANALYSIS AND PERFORMANCE OF HDFC BANK”

A RESEARCH PROPOSAL SUBMITTED TO

SUBMITTED BY

VENKATESH EMBADI
Registration Number: 120124028

UNDER THE SUPERVISION OF

DR.G. USHA SREE.

DEPARTMENT OF COMMERCE & BUSINESS MANAGEMENT

CHAITANYA DEEMED TO BE UNIVERSITY,
HANAMKONDA, WARANGAL URBAN TELANGANA STATE.

Meaning of bank:
A bank is a financial institution that accepts deposits from public and creates
credit.
Banking can be defined as the business activity of accepting and safeguarding
money owned by other individuals and then lending out this money in order to
earn profit.
A banker of a bank is a person, a firm, or a company engaged in the business of
landing and
accepting money.
Conclusion of bank:
Accept deposits of money from public.
Pays interest on money deposited with it.
Lend or invest money.
Repays amount on demand.

ABOUT THE BANKING INDUSTRY:

A bank is a financial institution who acts as a payment agent to customers and

to borrow and lend money. Banking in India originated in the last decades of the
18thcentury. The first bank was the General Bank of India, which started in the
year 1786, and The Bank of Hindustan. The banking regulation act of India,
1949 regulates the Indian banking industry, and it has classified the banks into
two major categories, namely, scheduled banks and non- scheduled banks

The banking industry is one of the huge sectors of banking and finance that has
existed in human civilization in some form for thousands of years. There are
many banks in the world and they all are usually regulated by the world’s
governments so as to curb corruption and also protect the money of the general
public.
In today’s world, the banking industry plays a major part in financial dealings,
as it is one of the biggest and most popular means for investing, borrowing, and
storing money. The oldest bank still in existence is the State Bank of India,
which originated in the Bank of Calcutta in June 1806.

Private Banks:
Private Banks in India is a part of Indian banking sector which are owned by
either an individual or a general partner. Private Banks are usually not
incorporated. These are the banks in which the greater part of stake or equity is
held by the private shareholders and not by the government.
The word “private” denotes that the customer service is rendered in a more
personalized manner.

Public Banks:
Public banks are the banks wherein the majority stake is held by the
government.
The banks in which more than 50% of stake is held by the government are calle
d the public sector banks. In India,there are 21 public sectorbanks in total. A pu
blic bank is a bank or a financial institution in which state or the public actors
are the owners. Thus, it is a company under the state control.

INTRODUCTION:

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.
The bank was incorporated in August 1994 in the name of 'HDFC Bank
Limited', with its registered office in Mumbai, India. HDFC Bank commenced
operations as a Scheduled Commercial Bank in January 1995. HDFC is India’s
premier housing finance company and enjoys an impeccable track record in
India as well as in international markets.
Since its inception in 1977, the Corporation has maintained a consistent and
healthy growth in its
operations to remain the market leader in mortgages. Its outstanding loan
portfolio covers well
over a million dwelling units. HDFC has developed significant expertise in
retail mortgage loans
to different market segments and also has a large corporate client base for its
housing related
credit facilities. With its experience in the financial markets, a strong market
reputation,
large shareholder base and unique consumer franchise, HDFC was ideally
positioned to promote
a bank in the Indian environment.
HDFC Bank began operations in 1995 with a simple mission: to be a “World
Class Indian
Bank.” We realized that only a single-minded focus on product quality and
service excellence
would help us get there. Today, we are proud to say that we are well on our way
towards that
goal.
HDFC Bank Limited (the Bank) is an India-based banking company engaged in
providing a
range of banking and financial services, including commercial banking and
treasury operations.
The Bank has a network of 1412 branches and 3295 automated teller machines
(ATMs) in 528
cities and total employees are 52687.

History of HDFC Bank:

HDFC BANK LTD was incorporated in August 1994 in the name of 'HDFC
Bank Limited’, with its registered office in Mumbai, India. HDFC Bank
commenced operations as a Scheduled Commercial Bank in January 1995.
If ever there was a man with a mission it was Hasmukh Bhai Parekh, Founder
and Chairman-Emeritus, of HDFC Group. HDFC BANK LTD was amongst the
first to set up a bank in the private sector. The bank was incorporated on 30th
August 1994 in the name of ‘HDFC Bank Limited’, with its registered
office in Mumbai. It commenced operations as a Scheduled
Commercial Bank on 16th January 1995.
The bank has grown consistently and is now amongst the leading players in the
industry HDFC is India’s premier housing finance company and enjoys an
impeccable track record in India as well as in international markets.

Since its inception in 1977, the Corporation has maintained a consistent

and healthy growth in its operations to remain the market leader in mortgages.
Its outstanding loan portfolio covers well over a million dwelling units. HDFC
has developed significant expertise in retail mortgage loans to different market
segments and also has a large corporate client base for its housing related credit
facilities. With its experience in the financial markets, a strong market
reputation, large shareholder base and unique consumer franchise, HDFC was
ideally positioned to promote a bank in the Indian environment in a milestone
transaction in the Indian banking industry, Times Bank was merged with HDFC
Bank Ltd., effective February 26, 2000

MISSION:

I. World Class Indian Bank

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

Sr. No. Name of Director Designation

1 Mr. Atana Chakraborty Part-Time Chairman and Independent Director
2 Mr. Malay Patel Independent Director
3 Mr. Umesh Chandra Sarangi Independent Director
4 Mrs. Reno Karna Non-Executive Director
5 Mr. Sanjiv Sachar Independent Director
6 Mr. Sandeep Parekh Independent Director
7 Mr. MD Ranganatha Independent Director
8 Rd. (Mrs). Sunita Maheshwari Independent Director
9 Mrs. Lily Vadra Independent Director
10 Mr. Shashidhar Jagdish an Managing Director & Chief Executive Officer
11 Mr. Keizai Bharuch Executive Director

Senior management team:

Board Of Directors
Name Designation
Mr. Kaizad Bharucha Executive Director
Mr. D Ranganath Independent Director
Ms. Sunita Maheshwari Independent Director
Mr. Umesh Chandra Sarangi Independent Director
Mrs. Lily Vadera Independent Director
Mr. Malay Patel Independent Director
Mr. Sanjiv Sachar Independent Director
Mr. Sandeep Parekh Independent Director
Mr. Shashidhar Jagdishan Managing Director & CEO
Mrs.Renu Karnad Non-Executive Director
Mr. Atanu Chakraborty Part Time Chairman & Independent Director
Business profile of hdfc bank.

WHOLESALE BANKING SERVICES:

The Bank's target is primary large blue-chip manufacturing companies in the

Indian corporate sector and to a lesser extent, emerging midsized corporate. For
these corporate the Bank provides a 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 provider of structure solution which combine cash management services
with vendors and distributor finance for facilitating superior supply chain
management for its corporate customers. Based on its superior product
delivery24
service levels and strong customer orientation, the Bank has made significant
inroads into the Banking consortia of a number of leading India corporate
including Multinationals, Companies from the domestic business house
and prime public 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 Bank

RETAIL BANKING SERVICES:

The objective of retail bank is to provide its target market customer a full
range of financial products and banking service, giving the customer a
one-stop window for all his/her banking requirements. The products are
backed by world-class services and delivered to the customers
through the growing branch network as well as though alternative
delivery channels like ATMs, phone banking, net banking and mobile banking.
The HDFC bank preferred programs for high-net-worth individuals, the HDFC
bank plus and the investment advisory services program have been
designed keeping in mind heads of customers who seek distinct
financial solutions information and advice on various investment avenues.
The also had a wide array of retail ban products including auto loans, loans
against marketable securities, personal loans and loans for two
wheelers. It is also a leading provider of depository service to retail
customers offering customers the facility to hold their investments in
electronic form. HDFC Bank was the first bank in India to launch an
international debit card in association with VISA (Visa election) and issue the
master card Maestro debit card as well. The debit card allows the use to directly
debit his account at the point of purchase at a merchant establishment, in India
and overseas. The bank launches its credit Cardin association with VISA in
November 2002. The bank is also one of the leading players in the "merchant
acquiring" business with 26,400point of sale (pops) terminals for debit/credit
cards acceptance at merchant establishments. The bank is well positioned as a
leader in various net based B2C opportunities including a wide range of interest
banking services for fixed deposit, loans, bill payments etc.

TREASURY OPERATIONS:

Within this business the bank has three main product areas foreign exchange
and derivative, local currency, money market & debt securities and
equities. With the liberalization of the financial market26 in India, corporate
need more sophisticated risk management information advice and product
structure. These and find pricing on various treasury product are provided
through the bank treasury team.

 BOARD OF DIRECTOR
 Mr. Jagdish Kapoor, (Chairman)
 Mr. Aditya Puri, (Managing Director)
 Mr. Keki Mistry
 Dr. Venkat Rao Gadwall
 Dr. Vineet Jain
 Mrs. Renu Karnad
 Mr. Arvind Pande
 Mr. Ranjan Kapoor (Resigned w.e.f. 29th March, 2006)
 Mr. Bobby Parikh (w.e.f. Jan. 9, 2004)
 Mr. Ashim Samantha
VICE PRESIDENT AND COMPANY SECRETARY

 Mr. Sanjany Dongre

AUDITOR

 M/s P.C Hansotia & Co.

 Chartered Accountant
 REGISTERED OFFICE
 HDFC BANK HOUSE
 Senapati Bapat Mart,
 Lower Parel,
 Mumbai 40013
 Tel. No. 66521000
 Fax No. 24960737
 Website: www. hdfcbank.com