An Analytical Study of HDFC

PROJECT ON
AN ANALYTICAL STUDY OF HDFC BANK
SUBMITTED BY
PARUL SATYANARAYAN CHAURASIA
M.COM PART II SEM 3
2023-24
SEAT NO:- 6540300
PROJECT GUIDE
PROF. YUSUF FAROOQUI & PROF. SAMEER NAIK
SUBMITTED TO
UNIVERSITY OF MUMBAI
Anjuman-I-Islam's
AKBAR PEERBHOY COLLEGE OF COMMERCE & ECONOMICS
M/S SHAUKAT ALI ROAD, DO TAAKI, GRANT ROAD
MUMBAI-08
1
Anjuman-I-Islam's
AKBAR PEERBHOY COLLEGE OF COMMERCE &
ECONOMICS
M/S SHAUKAT ALI ROAD, DO TAAKI, GRANT
ROAD
MUMBAI-08
Certificate
MISS. PARUL SATYANARAYAN CHAURASIA of M.COM 2 Semester

III has undertaken & completed the project work titled An AN ANALYTICAL
STUDY OF HDFC BANK , During the academic year 2022-2023 under the
guidance of PROF. YUSUF FAROOQUI & PROF SAMEER NAIK
submitted to this college in fulfillment of the curriculum of Masters of
Commerce (Advance Accountancy), University of Mumbai.
This is a bonafide project work & the information presented is true and original
to the best of our knowledge and belief.
Project Course External Principal

Guide Co-Ordinator Examiner
2
Anjuman-I-Islam's
AKBAR PEERBHOY COLLEGE OF COMMERCE & ECONOMICS
M/S SHAUKAT ALI ROAD, DO TAAKI, GRANT ROAD
MUMBAI-08
DECLARATION
I, PARUL CHAURASIA student of Anjuman-I-Islam's Akbar Peerbhoy

College Of Commerce & Economics,M.COM (Part-II) Semester III hereby
declare that I have completed the project on AN ANALYTICAL STUDY OF
HDFC BANK " in academic year 2023-2024.
The information submitted is true and original to the best of my knowledge.
Signature of the Student
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ACKNOWLEDGMENT
To list who all have helped me is difficult because they are so

numerous and the depth is so enormous.
I would like to acknowledge the following as being idealistic

channels.
And fresh dimensions in the completion of this project.
I take this opportunity to thank the University of Mumbai forgiving

me chance to do this project.
I would like to thank my principal, Prof. (Dr.) Shaukat Ali for

providing the necessary facilities. required for completion of this
project.
I take this opportunity to thank our Coordinator Dr. Anzar for his
moral support and guidance.
I would also like to express my sincere gratitude towards my project

guide Prof. Yusuf Farooqui & Prof. Sameer Naik and care made the
project successful.
I would like to thank my College Library, for having provided various

reference books and magazines related to my project.
Lastly, I would like to thank each and every person who directly or
indirectly helped me in the completion of the project especially my
Parents and Peers who supported me throughout my project.
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TABLE OF CONTENT
1. AN ANYLYICAL STUDY OF HDFC BANK
2. INTRODUCTION OF THE TOPIC
3. IMPORTANCE TO THE COMPANY
4. HISTORY OF HDFC BANK
5. SERVICE QUALITY IN BANK
6. REVIEW OF LITERATURE
7. RESEARCH DESIGH
8. GROWTH OF BANKING INDUSTRY IN IN DIA
9. DATA ANALYSIS AND INTERPRETATION
10 TABULATION OD INDIA
11 DIRECTOR’S REPORT
12 SWOT ANALYSIS
13 SUGGESTION
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14 REFERNCES
15 CONCLUSION
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AN ANALYTICAL STUDY OF HDFC BANK
This study has been carried out to evaluate the financial performance of HDFC Bank 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. The bank at present has an enviable network of
over 4,805 branches spread over cities across India. All branches are linked on an online real
time basis. Customers in over 500 locations are also servicing through telephone banking.
The bank also has a network of about over 12.860 networked ATMs 2,657 across cities and
towns. HDFC Bank provides a number of products and services including wholesale banking
and retail banking. treasury, auto loans, two-wheeler loans, personal loans, loans against
property, consumer durable loans, life style loan, credit cards and the various digital products.
The financial performance of above-mentioned bank has been evaluated for the past five
years i.e.,2015, 2016, 2017, 2018 and 2019. The data analysed by ratio analysis such as
current ratio, cash position ratio, fixed assets ratio, debt-equity ratio and proprietary ratio and
give interpretation to each ratio. To conclude this article the financial soundness of the bank
is satisfactory during the study period.
 INTRODUCTION
Financial performance is the process of measuring how effectively a company utilizes its
assets from primary mode of business to raise incomes it also measures organizations whole
financial health over a particular period of time. Financial performance of the organization
deals with the financial strength and weaknesses of bank accurately establishing a
relationship between the balance sheet and income statement. This process used to clearly
understand the growth of long- term and short-term of bank There are several ways to analyse
data the researcher used ratio analysis in this research. This analysis also helpful determines
the credit worthiness of the bank to evaluate the market position among the competitors.
At HDFC Bank, I was assigned with the topic as "Opening Savings Accounts by Meeting
Customers" for my project work. I joined the company as a Sales Executive. The selection of
the topic was to know how the company generates business through them.
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Sales Executives are those sources of a company who have their own relations and personal
contacts among common public that they use to generate business through. Company has
certain criteria to recruit these Sales Executives. The steps are as follows.
 He should be at least 12 passed.

 He should have good personal contacts.
 He should have convincing power.
 He should be above 18 year old.
Once he through all these steps of recruitment, he becomes the Sales Executive of the
company and reserve the right to sale the various products to any prospect client also he is
paid the commission a certain percentage. There are some reward and tour package also.
Board of Directors
HDFC is a professionally managed organization with its Boardconsisting of eminent persons,
professionals who represent various segments including finance, taxation, construction and
urban policy & development. The Board primarily focuses on strategy formulation, policy
and control, designed to deliver increasing value to the various stakeholder
 Mrs. Shyamala Gopinath
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Mrs. Shyamala Gopinath holds a Master's Degree in Commerce and is a CAIIB. Mrs.
Gopinathhas over 39 years of experience in financial sector policy formulation in different
capacities at RBI. Mrs. Gopinath is a member of the following Committees of the Board of
the Bank.
Audit Committee
 Nomination and Remuneration Committee

 Risk Policy and Monitoring Committee
 Customer Service Committee (Chairperson)
 Fraud Monitoring Committee (Chairperson)
Mr. Keki Mistry
Mr. Keki Mistry holds a Bachelor's Degree in Commerce from the Mumbai University. Mr.
Mistry is a Fellow Member of the Institute of Chartered Accountants of India.
Mr. Mistry is a member of the following Committees of the Board of the Bank:
 Fraud Monitoring Committee

 Customer Service Committee
 Credit Approval Committee (Chairman)
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 Mrs.Renu Karnad
Mrs. Renu Karnad is a graduate in law from the Mumbai University and also holds a
Master's Degree in Economics from Delhi University. Mrs. Karnad is a Parvin
Fellow-Woodrow Wilson School of International Affairs, Princeton University,
U.S.A. Mrs. Karnad is a member on the following Committees of the Board of the
Bank:
 Stakeholders' Relationship Committee

 Corporate Social Responsibility Committee (Chairperson)
 Risk Policy and Monitoring Committee (Chairpersorn .
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 Mr. Paresh Sukthankar
Mr. Paresh Sukthankar completed his graduation from Sydenham College, Mumbai and holds
a Bachelor of Commerce (B.Com) degree from University of Mumbai. He has done his
Masters in Management Studies (MMS) from Jamnalal Bajaj Institute (Mumbai). Mr.
Sukthankar has also completed the Advanced Management Program (AMP) from the
Harvard Business School.
 Mr. Sukthankar is a member on the following Committees of the Board of the Bank:
 Corporate Social Responsibility Committee
 Stakeholders' Relationship Committee
 Risk Policy and Monitoring Committee
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Mr. Kaizad Bharucha
Mr. Kaizad Bharucha holds a Bachelor of Commerce degree from University of Mumbai, He
has been associated with the Bank since 1995. In his current position as Executive Director,
he is responsible for Wholesale Banking covering areas of Corporate Banking. Emerging
Corporate Group, Business Banking, Capital Markets & Commodities Business. Agri
Lending. Investment Banking, Financial Institutions & Government Business and
Department for Special Operations. Mr. Bharucha is a member on the following Committees
of the Board of the Bank:
 Credit Approval Committee
REASON FOR SELECTION OF THIS TOPIC:-

The financial sector is one of the booming and increasing sectors in India. The Sales
Executives are one of the most powerful, efficient and effective channel through which the
company sales its various types of financial products. It is really difficult to convince
customers and sell a single product but since these executives have their own personal
contacts which make the entire task casier to sell a product. Whereas in my entire project
work I found my interest in working in a team, dealing with customers and finally convincing
them to open an account with the bank.
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 IMPORTANCE TO THE COMPANY:-
The ultimate purpose of giving me this topic was to know about the customer's perceptions
about the different products of the bank, how these products can attract them and how the
company can generate maximum profit by convincing them through sales executives.
LEARNING FROM THE STUDY:
 The process of recruitment for Sales Executives of HDFC Bank.

 Different products and services provided by the bank.
 Customers' perception about the different products.
 The brand image of the bank.
 What are the problems faced by these sales executives daily basis.
 How to communicate with the customers.
 Different techniques of dealing with the customers.
 How to convince and convert a customer into a real customer.
MISSION STATEMENT OF HDFC BANK.
*World Class Indian Bank.
* Benchmarking against international standards.
* To build sound customer franchises across distinct businesses
* Best practices in terms of product offerings, technology, service levels, risk management
and audit & compliance
VISION STATEMENT OF HDEC 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
core values such as:-
1. Operational excellence.
2. Customer Focus.
 HISTORY OF HDFC BANK
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HDFC Bank Limited (Housing Development Finance Corporation) was incorporated in
August 1994 with its registered office in Mumbai, India. HDFC Bank commenced operations
as a scheduled commercial bank in January 1995. 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. The bank at present has an enviable network of over 4,805 branches spread over cities
across India All branches are linked on an online real time basis. Customers in over 500
locations are also servicing through telephone banking. The bank also has a network of about
over 12,860 networked ATMs 2,657 across cities and towns. HDFC Bank provides a number
of products and services including wholesale banking and retail banking, treasury, auto loans,
two-wheeler loans, personal loans, loans against property, consumer durable loans, life style
loan, credit cards and the various digital products,
 ORGANIZATION PROFILE
COMPANY HISTORY
FORMATION OF THE COMPANY
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.
 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 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.
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• CAPITAL STRUCTURE
The authorized capital of HDFC Bank is Rs550 crore (Rs5.5 billion). The paid-up capital is
Rs424.6 crore (Rs.4.2 billion). The HDFC Group holds 19.4% of the bank's equity and about
17.6% of the equity is held by the ADS Depository (in respect of the bank's American
Depository Shares (ADS) Issue). Roughly 28% of the equity is held by Foreign Institutional
Investors (FIIs) and the bank has about 570,000 shareholders. The shares are listed on the
Stock. Exchange, Mumbai and the National Stock Exchange. The bank's American
Depository Shares are listed on the New York Stock Exchange (NYSE) under the symbol
"HDB'.
 TIMES BANK AMALGAMATION
In a milestone transaction in the Indian banking industry, Times Bank Limited (another new
private sector bank promoted by Bennett, Coleman & Co./Times Group) was merged with
HDFC Bank Ltd., effective February 26, 2000. As per the scheme of amalgamation approved
by the shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank
received 1 share of HDFC Bank for every 5,75 shares of Times Bank. The acquisition added
significant value to HDFC Bank in terms of increased branch network, expanded geographic
reach, enhanced customer base, skilled manpower and the opportunity to cross-sell and
leverage alternative delivery channels.
 DISTRIBUTION NETWORK
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of
over 1229 branches spread over 444 cities across India. All branches are linked on an online
real-time basis. Customers in over 120 locations are also serviced through Telephone
Banking. The Bank's expansion plans take into account the need to have a presence in all
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 has a strong and active member base.
The Bank also has a network of about over 2526 networked ATMs across these cities.
Moreover, HDFC Bank's ATM network can be accessed by all domestic and international
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Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge
cardholders.
• 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
executives 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 online 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).
The Bank has made substantial efforts and investments in acquiring the best technology
available internationally, to build the infrastructure for a world class bank. The Bank's
business is supported by scalable and robust systems which ensure that our clients always get
the finest services we offer.
The Bank has prioritized its engagement in technology and the internet as one of its key goals
and has already made significant progress in web-enabling its core businesses. In each of its
businesses, the Bank has succeeded in leveraging its market position, expertise and
technology to create a competitive advantage and build market share.
 BUSINESS FOCUS
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HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound
customer franchises across distinct businesses so as to be the preferred provider of banking
services for target retail and wholesale customer segments, 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, corporate governance and regulatory
compliance, HDFC Bank's business philosophy is based on four core values - Operational
Excellence, Customer Focus, Product Leadership and People.
 RATING
1. Credit Rating
The Bank has its deposit programs rated by two rating agencies - Credit Analysis & Research
Limited (CARE) and Fitch Ratings India Private Limited. The Bank's Fixed Deposit
programme has been rated 'CARE AAA (FD)' [Triple A] by CARE, which represents
instruments considered to be "of the best quality, carrying negligible investment risk". CARE
has also rated the bank's Certificate of Deposit (CD) programme "PR 1+" which represents
"superior capacity for repayment of short term promissory obligations", Fitch Ratings India
Pvt. Ltd. (100% subsidiary of Fitch Inc.) has assigned the "tAAA (ind)" rating to the Bank's
deposit programme, with the outlook on the rating as "stable". This rating indicates "highest
credit quality" where "protection. factors are very high".
The Bank also has its long term unsecured, subordinated (Tier II) Bonds rated by CARE and
Fitch Ratings India Private Limited and its Tier I perpetual Bonds and Upper Tier II Bonds
rated by CARE and CRISIL Lid. CARE has assigned the rating of "CARE AAA" for the
subordinated Tier II Bonds while Fitch Ratings India Pvt. Ltd. has assigned the rating "AAA
(ind)" with the outlook on the rating as "stable". CARE has also assigned "CARE AAA
[Triple A]" for the Banks Perpetual bond and Upper Tier II bond issues, CRISIL has assigned
the rating "AAA/ Stable" for the Bank's Perpetual Debt programme and Upper Tier II Bond
issue. In each of the cases referred to above, the ratings awarded were the highest assigned by
the rating agency for those instruments.
II. Corporate Governance Rating
The bank was one of the first four companies, which subjected itself to a Corporate
Governance and Value Creation (GVC) rating by the rating agency, The Credit Rating
Information Services
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of India Limited (CRISIL). The rating provides an independent assessment of an entity's
current performance and an expectation on its "balanced value creation and corporate
governance practices" in future. The bank has been assigned a 'CRISIL GVC Level 1' rating
which indicates that the bank's capability with respect to wealth creation for all its
stakeholders while adopting sound corporate governance practices is the highest.
2.2 PRODUCT SCOPE:
HDFC Bank offers a bunch of products and services to meet the every need of the people.
The company cares for both, individuals as well as corporate and small and medium
enterprises.
For individuals, the company has a range accounts, investment, and pension scheme, different
types of loans and cards that assist the customers. The customers can choose the suitable one
from a range of products which will suit their life-stage and needs.
For organizations the company has a host of customized solutions that range from Funded
services, Non-funded services, Value addition services. Mutual fund etc. These affordable
plans apart from providing long term value to the employees help in enhancing goodwill of
the company.
The products of the company are categorized into various sections which are as follows:
 Accounts and deposits.

 Loans.
 Investments and Insurance.
 Forex and payment services.
 Cards.
 Customer center.
 PRODUCTS AND SERVICES AT A GLANCE
1. PERSONAL BANKING
A. Accounts & Deposits
 Regular Savings Account

 Savings Plus Account
 SavingsMax Account
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 Senior Citizens Account
 No Frills Account
 Institutional Savings Account
 Payroll Salary Account
 Classic Salary Account
 Regular Salary Account
 Premium Salary Account
 Defence Salary Account
 Kid's Advantage Account
 Pension Saving Bank Account
 Family Savings Account.
 Kisan No Frills Savings Account
 Kisan Club Savings Account
 Plus Current Account
 Trade Current Account
 Premium Current Account
 Regular Current Account
 Apex Current Account
 Max Current Account
 Reimbursement Current Account
 RFC Domestic Account
 Regular Fixed Deposit
 Super Saver Account
 Sweep-in Account
 HDFC Bank Preferred
 Private Banking
B. Loans
 Personal Loans
 Home Loans
 Two Wheeler Loans
 New Car Loans
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 Used Car Loans
 Overdraft against Car
 Express Loans
 Loan against Securities.
 Loan against Property
 Commercial Vehicle Finance
 Working Capital Finance
 Construction Equipment Finance
 Offers & Deals
 Customer Center
C. Investments & Insurance
 Mutual Funds
 Insurance
 Bonds.
 Financial Planning
 Knowledge Centre
 Equities & Derivatives
 Mudra Gold Bar
D. Forex Services
 Trade Finance
 Travelers' Cheques
 Foreign Currency Cash
 Foreign Currency Drafts
 Foreign Currency Cheque Deposits
 Foreign Currency Remittances.
 Cash To Master
 ForexPlus Card
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E. Payment Services
 Net Safe
 Prepaid Refill
 Bill Pay
 Direct Pay
 Visa Money Transfer
 E-Monies Electronic Funds Transfer
 Excise & Service Tax Payment
F. Access Your Bank
 One View
 Insta Alerts
 Mobile Banking
 ATM
 Phone Banking
 Branch Network
G. Cards
 Silver Credit Card

 Gold Credit Card
 Woman's Gold Credit Card
 Platinum plus Credit Card
 Titanium Credit Card
 Value plus Credit Card
 Health plus Credit Card
 HDFC Bank Idea Silver Card
 HDFC Bank Idea Gold Card
 Compare Cards
 Transfer & Safe
 Track your Credit Card
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H. Get More from Your Card
 Offers & Savings

 My Rewards
 Insta Wonderz
 dd-On Cards
 Credit Card Usage Guide
 Easy EMI
 Net safe
 Smart Pay
 Secure Plus
 My City Benefit Card
 Debit Cards
 Easy Shop International Debit Card
 Easy Shop Gold Debit Card
 Easy Shop International Business Debit Card
 Easy Shop Woman's Advantage Debit Card
 Prepaid Cards
 Forex Plus Card
 Kisan Card
L. Customer Centre
 Offers & Deals

 Winners of Contests & Promotions
2. Wholesale Banking
A.Corporate
 Funded Services
 Non Funded Services
 Value Added Services
 Internet Banking
B. Small & Medium Enterprises
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 Funded Services.
 Non-Funded Services.
 Specialized Services
 Internet Banking
C. Financial Institutions & Trusts
 Banks
 Financial Institutions.
 Mutual Funds
 Stock Brokers
 MILESTONES IN THE HISTORY

HDFC Bank began its operations in 1995 with a simple mission: to be a "World-class Indian
Bank". They realized that only a single-minded focus on product quality and service
excellence. would help us get there. Today, they are proud to say that they are well on our
way towards that goal.
It is extremely gratifying that their efforts towards providing customer convenience have
been appreciated both nationally and internationally.
2007.
Business Today-Monitor Group survey One of India's "Most Innovative
Companies"
Financial Express-Ernst & Young Award Best Bank Award in the Private Sector
category.
Global HR Excellence Awards - Asia 'Employer Brand of the Year 2007- 2008-
Pacific HRM Congress Award- First Runner-up.
Business Today Best Bank Award'.
Dun & Bradstreet American Express Corporate Best Bank -Award

Corporate Best Bank Award 2007
The Bombay Stock Exchange and Nasscom Best Corporate Social Responsibility
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Foundation's Business for Social Practice Award.
Responsibility Awards 2007
Outlook Money & NDTV Profit Best Bank Award in the Private sector
category.
The Asian Banker Excellence in Retail Best Retail Bank in India.

Financial Services Awards
Asian Banker Managing Director Aditya Puri won the

Leadership achievement Award for India.
2006.
Business Today Best Bank in India.
Forbes Magazine One of Asia Pacific's Best 50 companies.
Business world Best listed Bank of India
The Asset Magazine's Triple A Country Best Domestic Bank.
Awards
Asiamoney Awards Best Local Cash Management Bank in Large and
Medium segments.
Euromoney Awards "Best Bank" in India.
2005.
Asiamoney Awards Best Domestic Commercial Bank
Asiamoney Awards Best Cash Management Bank - India.
The Asian Banker Excellence Retail Banking Risk Management Award in
India.
Hong Kong-based Finance Asia magazine Best Bank in India
Economic Times Awards "Company of the Year" Award for
Corporate Excellence.
The Asset Triple A Country Awards Best Domestic Bank in India Region - 2005
The Business Today-KPMG Survey Best Local Cash Management Bank in India
US$11-100m-2005
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The Business. Today-KPMG Survey "Best Bank in India" for the third
consecutive year in 2005.
Economic Times Avaya Global Connect "Most Customer Responsive Company
Customer Responsiveness Awards Banking and Financial Services - 2005
2004.
Asiamoney Awards Best Local Cash Management Bank in India
US$11-100m
Asiamoney Awards Best Local Cash Management Bank In India
US$501m
Asiamoney Awards Best Local Cash Management Bank in India
1989-2004 (poll of polls)
Asiamoney Awards Best Overall Domestic Trade Finance
Services in India - 2004
Asiamoney Awards Most Improved company for Best
Management Practices In India - 2004
Business World One of India's Most Respected Companies-
2004
Forbes Global Best Under a Billion, 100 Best Smaller Size
Enterprises in Asia/Pacific and Europe -
2004
Asian Banker Awards Operational Excellence in Retail Financial
Services - 2004
The Asset Triple A Country Awards Best Domestic Bank in India - 2004
2003.
Forbes Global Best Under a Billion. 200 Best Small
Companies-2003
The Asset Triple A Country Awards Best Domestic Bank in India -2003
Business World - The Business World Most One of India's Most Respected Companies
Respected Company Awards
The Asset magazine Best Cash Management Bank
The Asset magazine Best Trade Finance Bank
FE-Ernst & Young Best Banks SurveyFE- Best New Private Sector Bank - 2003
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Ernst & Young Best Banks Survey
Outlook Money Best Bank in the Private Sector 2003
Business Today Best Bank in India -2003
NASSCOM & economictimes.com-IT Users Best IT User in Banking -2003
Awards.
2002.
Ho Best Local Bank - India
ng Kong-based Finance Asia magazine
Hong Kong-based Finance Asia magazine Best Local Bank - India
Euromoney magazine "Best Bank in India
Asiamoney magazine Commercial Bank in India 2002
2001.
Hong Kong-based Finance Asia magazine Best Domestic Commercial Bank India
Hong Kong-based Finance Asia magazine Best Domestic Commercial Bank India
Euromoney magazine "Best Bank in India
Forbes Global Named in The 300 Best Small Companies
one of the "20 for 2001" best FE-E&Y Best
Banks small companies
The Economic Times Awards for Corporate Excellence as the
Emerging Company of the Year
2000.
Hong Kong-based Finance Asia magazine Best Domestic Commercial Bank - India
Hong Kong-based Finance Asia magazine Best Domestic Commercial Bank - India
Euromoney magazine Best Domestic Bank
Business India "India's Best Bank"
Forbes Global Named in The 300 Best Small Companies
one of the "20 for 2001" best FF-E&Y Best
Banks small companies.
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 SERVICE QUALITY IN BANKS
In the days of intense competition, the banks are no different from any other consumer
marketing company. It has become essential for the service firms in general and banks in
particular to identify what the customer's requirements are and how those customer
requirements can be met effectively. In the days where product and price differences are
blurred, superior service by the service provider is the only differentiator left before the banks
to attract, retain and partner with the customers. Superior service quality enables a firm to
differentiate itself from its competition, gain a sustainable competitive advantage, and
enhance efficiency. The benefits of service quality include increased customer satisfaction,
improved customer retention, positive word of mouth, reduced staff turnover, decreased
operating costs, enlarged market share, increased profitability, and improved financial
performance. The construct of service quality has therefore been a subject of great interest to
service marketing researchers..
Service quality has been defined by various experts in various ways as: 'Service Quality is the
difference between customers' expectations for service performance prior to the service
encounter and their perceptions of the service received." According to Gefan „Service quality
is the subjective comparison that customers make between the qualities of service that they
want to receive and what they actually get.' Parasuraman says, 'Service quality is determined
by the differences between customer's expectations of services provider's performance and
their evaluation of the services they received. Service quality is 'the delivery of excellent or
superior service relative to customer expectations". Service quality is recognized as a
multidimensional construct. While the number of dimensions often varies from researcher to
researcher, there is some consensus that service quality consists of three primary aspects:
outcome quality, interaction quality, and physical service environment quality. Outcome
quality refers to the customer's assessment of the core service which is the prime motivating
factor for obtaining the services (e.g. money received from ATM). Interaction quality refers
to the customer's assessment of the service delivery process, which is typically rendered via a
physical interface between the service provider, in person, or via technical equipment, and the
27
customer. It includes, for instang consumer's evaluation of the attitude of the service
providing sta physical service environment quality dimension refers to the con evaluation of
any tangible aspect associated with the facilities or Save that the service is provided in/ with.
It includes, for example, the physican conditions of an ATM machine.
The most popular dimensions of service quality--features five dimensions: tangibles,

reliability, responsiveness, empathy, and assurance. The tangibles dimension corresponds to
the aforementioned physical environment aspect, the reliability dimension corresponds to the
service outcome aspect, and the remaining three represent aspects of interaction quality. Both
the costs and the revenue of firms are affected by repeat purchases, positive word-of-mouth
recommendation, and customer feedback. Moreover, there is strong evidence that service
quality has either a direct influence on the behavioral intentions of customers and/or an
indirect influence on such intentions, mediated through customer satisfaction. RATER is an
instrument that might be used to define and measure banking service quality and to create
useful quality-assessment tools.
The RATER may finally provide the following benefits to the HDFC bank:
 It is the first approach to add and mix the customers" religious beliefs and cultural
values with other quality dimensions.
 It provides for multi-faced analysis of customer satisfaction.
 It links quality with customers" satisfaction and service encounter.
 It provides information at several levels, already organized into meaningful

groupings.
 It is a proven approach, which results in usable answers to meet customers" needs.
 It is empirically grounded, systematic and well documented. Banks managers can use
the RATER model and its dimensions fir the following issues.
 DIMENSIONS OF SERVICE QUALITY
28
TANGIBILITY: This dimension deal with modern looking equipments and visual appealing
part of banks.
RELIABILITY: This dimension has a direct positive effect on perceived service quality and
customer satisfaction in banking institutions. Banks must provide error free service and
secure online transactions to make customers feel comfortable.
RESPONSIVENESS: Customers expect that the banks must respond their inquiry promptly.
Responsiveness describes how often a bank voluntarily provides services that are important
to its customers. Researchers examining the responsiveness of banking services have
highlighted the importance of perceived service quality and customer satisfaction.
ASSURANCE: Customer expects that the bank must be secured and the behavior of the
employees must be encouraging.
EMPATHY: individual attention, customized service and convenient banking hours are very
much important in today s service.
In order to achieve better understanding of service quality in banking sector, the proposed
five service quality dimensions are conceptualized to illustrate the overall service quality of
the banking in relation to customers" and providers perspective.
Banking was in the sector featuring medium goods and higher customer producer
interactions, since in banking, consumers and service providers interact personally and the
use of goods is at a medium level. Hence, in banking, where there are high customer-
producer interactions, the quality of service is determined to a large extent by the skills and
attitudes of people producing the service.
In the case of services, because customers are often either direct observers of the production
process or active participants, how the process is performed also has a strong influence on the
overall impression of the quality of service. A well-performed service encounter may even
overcome the negative impression caused by poor technical quality as well as generate
positive word-of-mouth, particularly if customers can see that employees have worked very
hard to satisfy them in the face of problems outside their control. Employees are part of the
29
process, which connects with the customer at the point of sale, and hence employees remain
the key to success at these service encounters or "moments of truth". It is these encounters
with customers. during a service that are the most important determinants of overall customer
satisfaction, and a customer s experience with the service will be defined by the brief
experience with the firm" s personnel and the firm" s systems. The rudeness of the bank s
customer service representative, the abruptness of the employee at the teller counter, or the
lack of interest of the person at the check deposit counter can alter one" s overall attitude
towards the service, perhaps even reversing the impression caused by high technical quality.
Another important service quality factor, competence, is defined by whether the bank
performs the service right the first time, whether the employees of the bank tell customers
exactly when services will be performed, whether the bank lives up to its promises, whether
customers feel safe in their transactions with the bank and whether the employees show a
sincere interest in solving the customers" problems. In short, this dimension is related to the
banks" ability to perform the promised service accurately and dependably, Performing the
service dependably and accurately is the heart of service marketing excellence. When a
company performs a service carelessly, when it makes avoidable mistakes, and when it fails
to deliver on promises made to attract customers, it shakes customers" confidence in its
capabilities and undermines its chances of earning a reputation for service excellence.
It is very important to do the service right the first time. In case a service problem does crop
up, by resolving the problem to the customer" s satisfaction, the company can significantly
improve customer retention service is determined to a large extent by the skills and attitudes
of people producing the service.
In the case of services, because customers are often either direct observers of the production
process or active participants, how the process is performed also has a strong influence on the
overall impression of the quality of service. A well-performed service encounter may even
overcome the negative impression caused by poor technical quality as well as generate
positive word-of-mouth, particularly if customers can see that employees have worked very
hard to satisfy them in the face of problems outside their control. Employees are part of the
process, which connects with the customer at the point of sale, and hence employees remain
the key to success at these service encounters or "moments of truth". It is these encounters
with customers during a service that are the most important determinants of overall customer
satisfaction, and a customer" s experience with the service will be defined by the brief
30
experience with the firm" s personnel and the firm" s systems. The rudeness of the bank" s
customer service representative, the abruptness of the employee at the teller counter, or the
lack of interest of the person at the check deposit counter can alter one s overall attitude
towards the service, perhaps even reversing the impression caused by high technical quality.
Another important service quality factor, competence, is defined by whether the bank
performs the service right the first time, whether the employees of the bank tell customers
exactly when services will be performed, whether the bank lives up to its promises, whether
customers feel safe in their transactions with the bank and whether the employees show a
sincere interest in solving the customers" problems. In short, this dimension is related to the
banks" ability to perform the promised service accurately and dependably. Performing the
service dependably and accurately is the heart of service marketing excellence. When a
company performs a service carelessly, when it makes avoidable mistakes, and when it fails
to deliver on promises made to attract customers, it shakes customers" confidence in its
capabilities and undermines its chances of earning a reputation for service excellence.
It is very important to do the service right the first time. In case a service problem does crop
up, by resolving the problem to the customer" s satisfaction, the company can significantly
improve customer retention.
However, companies fare best when they prevent service problems altogether and fare worst
when service problems occur and the company either ignores them or does not resolve them
to the customer" s satisfaction.
Performing the service accurately is perhaps the most important factor in service quality
excellence. The cost of performing the service inaccurately includes not only the cost of
redoing the service but also the cost associated with negative word-of-mouth generated by
displeased customers. In case of services, the factory is the field. Again, services are
intangible and hence the criteria for flawless services are more subjective than the criteria for
defect- free tangible goods. Hence for most services, customers" perceptions of whether the
service has been performed correctly, and not provider- established criteria, are the major
determinants of reliability.
31
The service quality factor tangible is defined by whether the physical facilities and materials
associated with the service are visually appealing at the bank. These are all factors that
customers notice before or upon entering the bank. Such visual factors help consumers form
their initial impressions. A crucial challenge in service marketing is that customers cannot see
a service but can see the various tangibles associated with it all these tangibles, the service
facilities, equipment and communication materials are clues about the intangible service. If
unmanaged, these clues can send to the customer" s wrong messages about the service and
render ineffective the marketing strategy of the company. On the other hand, improving
quality through tangibles means attention to the smallest details that competitors might
consider trivial. Yet, these visible details can add up for customers and signal a message of
caring and competence.
Customers may reveal new aspects of service quality in banking that are important to them,
and these would have to be incorporated in the scale so as to further explore the concept of
service quality in the banking arena.
 MERGER
HDFC Bank and Centurion Bank of Punjab merger at share swap ratio of 1:29
The Boards of HDFC Bank and Centurion Bank of Punjab met on 25 February, 2008 and
approved, subject to due diligence, the share swap ratio for the proposed merger of Centurion
Bank of Punjab with HDFC Bank. The Scheme of Amalgamation envisages a share exchange
ratio of one share of HDFC Bank for twenty nine shares of Centurion Bank of Punjab.
The combined entity would have a nationwide network of 1.148 branches (the largest
amongst private sector Banks) a strong deposit base of around Rs. 1,200 billion and net
advances of around Rs. 850billion. The balance sheet size of the combined entity would be
over Rs. 1.500 billion.
Commenting on the proposed merger, Mr. Deepak Parekh, Chairman, HDFC said, "We were
amongst the first to get a banking license, the first to do a merger in the private sector with
Times Bank in 1999, and now if this deal happens, it would be the largest merger in the
32
private sector banking space in India. HDFC Bank was looking for an appropriate merger
opportunity that would add scale, geography and experienced staff to its franchise. This
opportunity arose and we thought it is an attractive route to supplement HDFC Bank's
organic growth. We believe that Centurion Bank of Punjab would be the right fit in terms of
culture, strategic intent and approach to business."
Mr. Aditya Puri, Managing Director, HDFC Bank said, "These are exciting times for the
Indian banking industry. The proposed merger will position the combined entity to
significantly
exploit opportunities in a market globally recognized as one of the fastest growing. I'm
particularly bullish about the potential of business synergies and cultural fit between the two
organizations. The combined entity will be an even greater force in the market."
Mr. Rana Talwar, Chairman, Centurion Bank of Punjab stated, "Over the last few years,
Centurion Bank of Punjab has set benchmarks for growth. The bank today has a large
nationwide network, an extremely valuable franchise, 7,500 talented employees, and strong
leadership positions in the market place. I believe that the merger with HDFC Bank will
create a world class bank in quality and scale and will set the stage to compete with banks
both locally as well on a global level."
Mr. Shailendra Bhandari, Managing Director and CEO, Centurion Bank of Punjab
said, "We are extremely pleased to receive the go ahead from our board to pursue this
opportunity. A merger between the banks provides significant synergies to the combined
entity. The proposed merger would further improve the franchise and customer proposition
offered by the individual banks."
33
 FINANCIAL FIGURE
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2008
Particular Quarter Quarter Year
ended ended ended
30.06.08 30.06.07 31.03.08
Unaudited Unaudited Audited
1 Interest Earned (a)+(b)+(c)+(d) 362173 206916 1011500
a) Interest/discount on advances/bills 263638 145536 696673
b) Income on Investments 95121 56047 287204
c) Interest on balances with Reserve
Bank of India and other interbank funds 2426 5337 27239
d) Others
2 Other income 59342 57254 228315
3 A)TOTAL INCOME (1)+(2) 421515 264170 1239815
4 Ineterst expended 189826 108364 488712
5 Operating Expenses (i) + (ii) 1289826 77438 374562
i) Employees cost 54058 28388 130135
ii) Other operating expenses 74880 49050 244427
6 B) TOTAL EXPENDITURE (4)+(5) (excluding 318764 185802 863274
Provisions & Contingencies)
7 Operating Profit before Provisions and 102751 78368 376541
Contingencies (3) -(6)
8 Provisions (Other than tax) and Contingencies 34447 30712 148478
9 Exceptional Items _ _ _
10 Profit/(Loss) from ordinary activities. before tax (7- 68304 47656 228063
8-9)
11 Tax Expense 21869 15533 69045
12 Net Profit/ (Loss) from Ordinary 12 Activities after 46435 32123 159018
tax (10-11)
13 Extraordinary items (net of tax expense) _ _ _
14 Net Profit/(Loss) (12-13) 46435 32123 159018
15 Paid up equity share capital (Face Value of Rs.10/- 42462 33319 35443
each)
16 Reserves excluding revaluation reserves (as per _ _ 1114280
balance sheet of previous 16 accounting year)
17 Analytical Ratios
(i)Percentage of shares held by Government of
India.
34
(ii) Capital Adequacy Ratio NIL NIL NIL
(iii) Earnings per share (Rs.). 12.2% 13.1% 13.6%
(a) Basic EPS before & after extraordinary
items (net of tax expense)-not annualized
(b) Diluted EPS before & after extraordinary
items (net of tax expense) -not annualized 11.0 10.0 46.2
iv) NPA Ratios 10.8 10.0 45.6
(a) Gross NPA
(b) Net NPA 150274 71016 90697
(c) % of Gross NPA to Gross Advances 49607 21424 29852
(d) % of Net NPA to Net Advances 1.5% 1.3% 1.3%
(v) Return on assets (average) not annualized 0.5% 0.4% 0.5%
(vi) Public Shareholding
(a) No. of shares 0.3% 0.3% 1.3%
18 18-Percentage of Shareholding 342173776 250744008 271989920

80.6% 75.3% 76.7%
 REVIEW OF LITERATURE
Nagalekshmi V S, Vineeth S Das (2018), found that the positive impact of merger Kotak
Mahindra Bank Ltd with ING-Vysya Bank. It also found that momentous increment in
various budgetary like operating profit, net profit, earnings per share, interest earned, return
on assets, equity share capital, income on investment etc,
K. Dinesh Kumar and G. Venugopal (2018) revealed that ICICI Bank good performance of
balance sheet ratios and Debt coverage ratios and next position of HDFC Bank. SBI and
Kotak Mahindra Bank performance is good in profitability ratios.
Murad Mohammad Galif Al-Kaseasbah and Abdel KarimSalimissaAlbkour (2018) in

their paper entitled, financial performance of Indian Banking sector: A Case Study of SBI
and ICICI Bank. To examine the financial performance of SBlandICICI Bank. During the
study, it was found that the SBI recorded fluctuating trend on the other hand ICICI failed to
manage the increasing trend...
Vinoth Kumar and Bhawna Malhotra (2017), attempted has been made evaluate the
performance & financial soundness of selected private sector banks in India for the period
2007- 2017 CAMEL approach has been used. This study concluded that the Axis Bank is
ranked first under the CAMEL analysis followed by ICICI Bank Kotak Mahindra Bank
35
occupied the third position. The fourth position occupied by HDFC Bank and the last position
is occupied by IndusInd bank amongst all the selected banks.
SuruchiSatsangi Prem Das Saini (2017) analysed financial performance of Kotak Mahindra
Bank merger with ING Vysya Bank. The findings of the study showed the high growth rate
which is observed in the financial performance of the Kotak Mahindra Bank after the mergers
and acquisitions.
Priyanka Jha (2017) analysed financial performance of Public Sector Banks (Punjab
National Bank) and Private Sector Banks (ICICI) in India. The researcher concludes her
research PNB has lower operational efficiency comparatively than ICICI Bank. In case of
dividend pay- out ratio, debt-equity ratio and interest expended to interest earned, ICICI Bank
has performed sounder as compare to PNB.
Jaiswal and Jain (2016) entitled a comparative study of financial performance SBI and
ICICI Bank in India. This study examines the financial performance of Indian Banks with the
help of CAMEL Model. This study compares the financial performance of SBI and ICICI
from 2010-11 to 2014-15.
The authors suggested that the SBI is performing well as compare to the ICICI. Furthermore,
it was found that the market position of SBI is better than ICICI in terms to earning per share,
price ratio per share and dividend pay-out ratio. On the other hand, ICICI Bank performing
well in terms of NPA and provision for NPA in comparison of SBI bank.
Gupta (2014) entitled an empirical study of financial performance of ICICI bank a

comparative analysis focused on operational control profitability and solvency etc., this
research paper aimed to analysis and compare the financial performance of ICICI bank and
offer suggestions for the improvement of efficiency in the bank. This study suggested that
NPAs of the ICICI Bank is more than I percent. Therefore, ICICI should control NPAs
Turkey and Salem (2013) analysed a comparative study financial statement of ICICI and
HDFC through ratio analysis examined the financial position with the use of different ratios.
It was found that financial position of ICICI is much better than HDFC
36
 RESEARCH DESIGN
Methodology
This study is quantitative nature meaning it primarily deals with financial statement of HDFC
Bank for the past five years. This study is based on secondary data which is taken from banks
website and the annual reports. The data is analysed by the ratio analysis and the performance
of the bank is clearly explained for the study period.
Objectives of the study

 To evaluate the financial performance of HDFC Bank.
 To analyse the liquidity and solvency position of the bank.
 To find the changes in the trends of the bank using trend analysis
Limitations of the study

 The study is restricted only the five financial years i.e., 2015,2016,2017,2018 and
2019.
 The study completely based on secondary data and the accuracy of the analysis
depends on the data obtained.
 This study may not be extensive enough to cover all the ratios to be considered in
evaluating the financial soundness of the bank accurately.
Data analysis
37
Some of the major ratios have been evaluated and interpreted for the purpose of
understanding the financial performance of the bank.
SHORT-TERM SOLVENCY RATIOS
CURRENT RATIO
Current ratio establishes relationship between current assets and current liabilities. Current
assets mean any asset is converted in to cash within a year or 12 months. Current liabilities
are those liabilities are settled or repay within a year
Current Ratio = Current Assets/ Current Liabilities.

The standard norm or rule of thumb for current ratio is 2:1. It means that let the total amount
of current liabilities. When a bank's current ratio is 2 or more it means that its liquidity
position is good.
Table 1: Current Ratio
Year 2016-17 2015-16 2014-15

2018-19 2017-18
CR 6.74 7.97 4.64 5.52 6.24
Source: Annual Report
38
able 1 shows that the current ratio was 6.24 in the year 2014-15 it was increased to 5.52 and
4.64 in the years 2015-16 and 2016-17. In the year 2017-18 the ratio was increased 7.97
except in the year 2018-19. It indicates that banks liquidity and its repayment of debts are
sound during the period of study.
CASH POSITION RATIO

This ratio is also called "Absolute Liquidity Ratio" or Super Quick Ratio. This is a variation
of quick ratio. This ratio is calculated when liquidity is highly restricted in terms of cash and
cash equivalents. This ratio measures liquidity in terms of cash and near cash items and short-
term current liabilities. Cash position ratio is calculated with the help of the following
formula.
Cash Position ratio Cash and Bank Balances + Marketable

Securities / Current Liabilities
An ideal cash position ratio is 0.75 1. This ratio is a more rigorous measure of a firm’s
liquidity position.
Table 2: Cash Position Ratio
Year 2018-19 2017-18 2016-17 2015-16 2014-15

CPR 1.47 2.68 0.86 1.05 1.11
Source Annual Report.
39
Table 2 explains ability of bank to meet its financial obligations it gives better position of the
bank. Cash Position Ratio in the year 2014-15 is 1 11 which had decreased by 1.05 and 0.86
in the year 2015-16 and 2016-17 respectively. But in the year 2017-18 it had increased to
268. In the year 2018-19 it had decreased 1.47. During the study period the bank liquidity
position is good.
LONG-TERM SOLVENCY RATIOS
FIXED ASSETS RATIO

This ratio deals the relationship between fixed assets and long-term funds. The primary motto
of this ratio is to ascertain the proportion of long-term funds invested in fixed assets.
Fixed Assets Ratio = Fixed Assets/Long-Term Funds

An ideal fixed assets ratio is 0.67. The ratio must not be more than 1, if the ratio is less than
lit indicates that a portion of working capital had financed by long-term funds.
Table 3: Fixed Assets Ratio
Year 2018-19 2017-18 2016-17 2015-16 2014-15

FAR 7.39 6.95 7.07 6.61 6.22
40
Table 3 reveals that fixed assets and long-term funds of the bank. In the year 2014-15 fixed
assets ratio is 6.22 which has increased to 6.61 in the year 2015-16. During the year 2016-17
the ratio was 7.07 and in the year 2017-18 it had decreased by 6. 95. 2018-19 the ratio was
increased to 7.39 These ratios are compared with standard norm of fixed assets ratio; it is
very high. Hence a portion of working capital had financed by long-term funds during the
study period.
DEBT-EQUITY RATIO
This ratio is otherwise called as "External-Internal Equity Ratio". Mainly it is calculated to
assess the financial soundness of long-term policies and to determine the relative shares of
outsiders and shareholders. It determines relationship between the debt and equity
Debt-Equity Ratio = Shareholders Funds/Total Long-Term Funds

A high debt-equity ratio shows the highest claims of creditors over assets of the firm than
those of shareholders. A high ratio reveals an unfavourable position of the company. A low
debt-equity ratio indicates lesser claim of creditors and a higher margin is safe for them. The
standard norm of this ratio 2:1 is satisfactory.
Table 4: Debt-Equity Ratio
Year 2018-19 2017-18 2016-17 2015-16 2014-15

DER 1.27 0.86 1.20 1.37 1.37
41
Table 4 explains debt-equity relationship. In the year 2014-15 the ratio was 1.37 and it was
same in the year 2015-16 followed by this it was decreased by 1.20 during the year 2016-17.
In 2017- 18 it was decreased by 0.86 But it was increased in the year 2018-19 was 1.27.
These ratios are less than the standard norm of 2:1 Hence, the creditors are safe during the
study period.
PROPRIETARY RATIO
This ratio is called as owners fund ratio or net worth ratio. This ratio points out relationship
between the stake holder's funds and total tangible assets.
Proprietary Ratio = Shareholders funds/Total tangible assets

This ratio is very useful to determine the long-term solvency of the company. It is important
to the creditors who can ascertain the proportion of shareholders' funds in the total assets
employed in the company. Standard norm of this ratio 0.5, below this standard norm the
creditors may have to loss heavily in the event of winding up of the company.
Table 5: Proprietary Ratio
Year 2018-19 2017-18 2016-17 2015-16 2014-15

Proprietary 2.80 2.62 1.95 1.75 2.79
ratio
Source: Annual Report.
42
Table 5 clearly explains that long-term solvency of the company. In the year 2014-15 the
ratio was 2.79 which have decreased by 1.75 in the year 2015-16. But it was increased to 1.95
during the year 2016-17 Followed by this in the year 2017-18 and 2018-19 it was increased to
2.62 and 2.80 respectively. These ratios are more than the standard norm of 0.5. It is clearly
shows that the creditors are highly safe during the study period.
FINDINGS
1. Current ratio indicates that banks liquidity and its repayment of debts are sound during the
period of study.
2. Cash position ratio or Absolute Liquidity Ratio is shows during the study period liquidity
position is good.
3. Fixed assets ratio explains portion of working capital had financed by long-term funds
during the study period.
4. Debt equity ratio explains the creditors are safe during the study period.
5. Proprietary ratio reveals that the bank long-term solvency position is good in the study
period.
43
HDFC Bank is an Indian banking and financial services company headquartered in Mumbai,
Maharashtra. The MD and CEO of the company is Amitabh Chaudhry, ED and CFO is Vibha
Padalkar It is largest bank in India by market capitalization as of February 2016.
Born 1964 (age 58–59)
Kaithal, Haryana, India
Education Birla Institute of Technology and

Science,Pilani
Indian Institute of Management
Ahmedabad
AMITABH CHAUDHRY
Occupation Banker
(8/9/2018 To 11/11/2019)
Title MD and CEO, HDFC BANK
Term 2019-till date
Predecessor Shikha Sharma
Amitabh Chaudhry is an Indian banker, and the managing director (MD) and chief
executive officer (CEO) of HDFC Life the third largest private sector bank in India. He
joined Axis in January 2019, after heading HDFC Life Insurance for nine years.
Education
Chaudhry is an engineer from Birla Institute of Technology and Science, Pilani, and pursued
post-graduation in business management from Indian institute of Management Ahmedabad.
Career
Prior to HDFC Life Chaudhry was the MD and CEO of Infosys BPO and the Head of testing
unit of In. Chaudhry began his career with Bank of America in 1987 and undertook diverse
roles such as Head of Technology Investment Banking for Asia, Regional Finance Head for
Wholesale Banking and Global Markets, and Chief Finance Officer of Bank of America
44
(India). Later, he moved to Crédit Lyonnais Securities in 2001 as the Head of Investment
Banking franchise for South East Asia.
compliance. HDFC Bank's business philosophy is based on four core values - Operational
Excellence, Customer Focus, Product Leadership and People.
HDFC Bank Ltd. is an Indian banking and financial services company headquartered in
Mumbai, Maharashtra. It has a base of 111,208 permanent employees as of 30 September
2019. HDFC Bank is India's largest private sector lender by assets. It is the largest bank in
India by market capitalisation as of February 2016. It was ranked 60th in 2019 Brand Top
100 Most Valuable Global Brands.
HDFC Bank was incorporated in 1994, with its registered office in Mumbai, Maharashtra,
India. Its first corporate office and a full service branch at Sandoz
House, Worli were inaugurated by the then Union Finance Minister, Manmohan Singh.
As of June 30, 2019, the Bank's distribution network was at 5,130 branches across 2.764
cities. The bank also installed 4.30 Lakhs POS terminals and issued 235.7 Lakhs debit cards
and 85.4 Lakhs credit cards in FY 2017.
HDFC Bank merged with Times Bank in February 2000. This was the first merger of two
private banks in the New Generation private sector banks category. In 2008, Centurion Bank
was acquired by HDFC Bank. HDFC Bank Board approved the acquisition of CBoP for 95.1
billion INR in one of the largest mergers in the financial sector in India.
HDFC Bank 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 from Housing Development
Finance Corporation Limited (HDFC), in 1994 during the period of liberalisation of the
banking sector in India. HDFC India was incorporated in August 1994 in the name of 'HDFC
45
Bank Limited'. HDFC India commenced operations as a Scheduled Commercial Bank in
January 1995.
HDFC Bank merged with Times Bank in February 2000. This was the first merger of two
private banks in the New Generation private sector banks category. In 2008, Centurion Bank
was acquired by HDFC Bank. HDFC Bank Board approved the acquisition of CBoP for 95.1
billion INR in one of the largest mergers in the financial sector in India.
HDFC Bank 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 from Housing Development
Finance Corporation Limited (HDFC), in 1994 during the period of liberalisation of the
banking sector in India. HDFC India was incorporated in August 1994 in the name of 'HDFC
Bank Limited'. HDFC India commenced operations as a Scheduled Commercial Bank in
January 1995.
HDFC India deals in varieties of products like home loan, standard life insurance, mutual
fund, securities, credit cards, etc. HDFC has branch offices in all major cities in India like
Calcutta, Chennai, Delhi, Bangalore, Hyderabad, Ahmedabad apart from HDFC Mumbai.
The banking industry has experienced mixed results in the post-crisis period from 2008 to
2010. Industry growth has slowed considerably; the growth rate of assets of the top 1000
banks globallyl in the post-crisis period remained 3.7%, compared to the double digit rise in
Rates shown during the pre-crisis years of 2005 to 2007. On the other hand, when looking at
Risk management and profitability, there has been great recovery. Profits have returned to
pre-
Crisis levels and the solvency of the industry has witnessed great result with growth of 3.8%
Registered in capital adequacy ratio during 2005 to 2010.
The industry has also entered era of advance regulation. More capital adequacy and risk
Management standards are now being utilized with banks, along with a related rise in strain
On their traditional business models and operating margins. Looking forward, certain key
Priorities have appeared for the banking industry, classification among them are: restoration
Of customer confidence; showing problem such as low efficiency of existing channels:
ageing
46
Technology: high operating costs and the existence of complex processes. Technology.
Including the development of consumer related solutions, is rising being seen as a key to
Meeting these standards.
The global banking industry has experienced healthy growth in recent years, registering a
Compound annual growth rate (CAGR) of 4.7% between 2012 and 2016 to reach a value of
$134.1 trillion, according to data from research firm Market Line.
HDFC Bank's business objectives emphasize the following:
 Increase their market share in India's expanding banking and financial services
industry by following a disciplined growth strategy and delivering high quality
customer service.
 Leverage their technology platform and open, scale able systems to deliver more
products to more customers and to control operating costs.
 Maintain their current high standards for asset quality through disciplined credit risk
management.
 Develop innovative products and services that attract our targeted customers and
address inefficiencies in the Indian financial sector.
 Continue to develop product and services that reduce our cost of funds.
 Focus on high earning growth with low volatility.
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.
available internationally, to build the infrastructure for a world class bank. In terms of core
banking software, the Corporate Banking business is supported by Flex cube, while the Retail
47
Banking business by Fin ware, both from I-flex Solutions Ltd. The systems are Open,
saleable and web-enabled.
compliance. HDFC Bank's business philosophy is based on four core values
OperationalHDFC Bank's business objectives emphasize the following:
Increase their market share in India's expanding banking and financial services industry by
following a disciplined growth strategy and delivering high quality customer service.
Leverage their technology platform and open, scale able systems to deliver more products to
more customers and to control operating costs.
Maintain their current high standards for asset quality through disciplined credit risk
management.
Develop innovative products and services that attract our targeted customers and address
inefficiencies in the Indian financial sector.
Continue to develop product and services that reduce our cost of funds.
Focus on high earning growth with low volatility.
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.
available internationally, to build the infrastructure for a world class bank. In terms of core
banking software, the Corporate Banking business is supported by Flex cube, while the Retail
48
Banking business by Fin ware, both from I-flex Solutions Ltd. The systems are Open,
saleable and web-enabled.
compliance. HDFC Bank's business philosophy is based on four core values Operational
Excellence, Customer Focus. Product Leadership and People. MISSION STATEMENT OF

HDFC BANK World Class Indian Bank. Benchmarking against international standards. To
build sound customer franchises across distinct businesses Best practices in terms of product
offerings, technology, service levels, risk management and audit & compliance.
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.
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of
over 1229 branches spread over 444 cities across India. All branches are linked on an online
real- time basis. Customers in over 120 locations are also serviced through Telephone
Banking. The Bank's expansion plans take into account the need to have a presence in all
major industrial and commercial centres 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
centres where the NSE/BSE has a strong and active member base. The Bank also has a
network of about over 2526 networked ATMs across these cities. Moreover, 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.
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 a market leader in
49
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.
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 liberalisation 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 Bank comprises of a dynamic and enthusiastic
team determined to accomplish the vision of becoming a World-class Indian bank. HDFC
bank" s business philosophy is based on our four core values - Customer Focus, Operational
Excellence, Product Leadership and People. They believe that the ultimate identity and
success of their bank will reside in the exceptional quality of people and their extraordinary
efforts. They are committed to hiring, developing, motivating and retaining the best people in
the industry.
So does HDFC bank meet these heightened expectations? What are the customers"
perceptions of service quality of the banks? Which dimension of service quality of HDFC
bank is performing well? To find out answers to these questions I undertook a survey of 2
branches of HDFC bank. A lot of surveys have been done in the past to understand the aspect
of customer satisfaction and to find out the customer friendly banks. My research is
conducted to find out "SERVICE QUALITY OF HDFC BANK"
Banking in India has a long and elaborate history of more than 200 years. The beginning of
this industry can be traced back to 1786, when the country's first bank. Bank of Bengal, was
established. But the industry changed rapidly and drastically, after the nationalization of
banks in 1969.
Indian Banking sector is dominated by Public sector banks (PSBs) which accounted for
72.6% of total advances for all SCBs as on 31st March 2008. PSBs have rapidly expanded
50
their foot prints after nationalisation of banks in India in 1969 and further in 1980. Although
there is a restrictive entry/expansion for private and foreign banks in
India, these banks have increased their presence and business over last 5 years.
Peculiar characteristic of Indian banks unlike their western counterparts such as high share of
household savings in deposits (57.4% of total deposits), adequate capitalization, stricter
regulations and lower leverage makes them less prone to financial crisis, as was seen in the
western world in mid FY09.
 FUNCTIONS OF BANKS
Primary Functions
 Acceptance of Deposits
 Making loans & advances
 Loans
 Overdraft
 Cash Credit
 Discounting of bills of exchange
Secondary Functions
 Agency functions
 Collection of cheques & Bills etc, Collection of interest and dividends.
 Making payment on behalf of customers
 Purchase & sale of securities
 Facility of transfer of funds
 To act as trustee & executor.
51
Utility Functions
 Safe custody of customer's valuable articles & securities.
 Underwriting facility
 Issuing of travellers cheque letter of credit.
 Providing trade information
 Provide information regarding credit worthiness of their customer.
 STRUCTURE OF HDFC BANK
The Indian banking system can be classified into nationalized banks, private banks and
specialized banking institutions. The industry is highly fragmented with 30 banking units.
contributing to almost 50% of deposits and 60% of advances. The Reserve Bank of India is
the foremost monitoring g body in the Indian Financial sector. It is a Centralized body that
monitors discrepancies and shortcomings in the system.
Banking segment in India functions under the umbrella of Reserve Bank of India (RBI)-
The regulatory, central bank.
This segment broadly consists of:-
1.Commercial Banks
2. Co-operative Banks
The commercial banking structure in India consists of:
1. Schedule Commercial Banks
2. Unscheduled Banks
Schedule Commercial Banks constitute of those banks, which have included second Schedule
of Reserve Bank of India (RBI) act 1934. RBI in turn includes only those banks in this
schedule that satisfy the criteria laid down vide section 42 (60 of the act) this sub sector can
broadly classified into:
52
1. Public Sector
2. Private Sector
3. Foreign Sector
Public sector banks have either government of India Reserve Bank of India (RBI) as the
Majority shareholder.
This segment comprises of:
1. State Bank of India (SBI) and its subsidiaries
2. Other Nationalized Banks
Industry estimates indicate that out of 274 commercial banks operating in the Country, 223
banks are in the public sector and 51 are in the private sector. These private sector banks
include 24 foreign banks that have begun their operations here. The specialized banking
institutions that include cooperatives, rural banks, etc. form a part of the nationalized banks
category.
 GROWTH OF BANKING INDUSTRY IN INDIA
Investments/developments:
Key investments and developments in India's banking industry include:
The bank recapitalization plan by Government of India is expected to push credit growth in
the country to 15 per cent and as a result help the GDP grow by 7 percent in FY19.
Public sector banks are lining up to raise funds via qualified institutional placements (QIP).
backed by better investor sentiment after the Government of India's bank recapitalization plan
and an upgrade in India's sovereign rating by Moody's Investor Service.
In May 2018, total equity funding's of microfinance sector grew at the rate of 39.88 to
Rs96.31 billion (Rs4.49 billion) in 2017-18 from Rs68.85 billion (USS 1.03 billion).
53
Government Initiatives:
A new portal named 'Udyami Mitra' has been launched by the Small Industries Development
Bank of India (SIDBI) with the aim of improving credit availability to Micro, Small and
Medium Enterprises' (MSMEs) in the country.
Mr Arun Jaitley, Minister of Finance, Government of India, introduced The Banking

Regulation (Amendment) Bill, 2017, which will replace the Banking Regulation
(Amendment) Ordinance, 2017, to allow the Reserve Bank of India (RBI) to guide banks for
resolving the problems of stressed assets.
As on January 4, 2018, the Lok Sabha has approved recapitalization bonds worth Rs80,000
crore (USS 12.62 billion) for public sector banks, which will be accompanied by a series of
reforms.
The government and the regulator have undertaken several measures to strengthen the Indian
banking sector:
A two-year plan to strengthen the public sector banks through reforms and capital infusion of
USS 32.5 billion, has been unveiled by the Government of India that will enable these banks
to play a much larger role in the financial system and give a boost to the MSME sector. In
this regard, the Lok Sabha has approved recapitalization bonds worth US$ 12.62 billion for
public sector banks, which will be accompanied by a series of reforms, according to Mr Arun
Jaitley, Minister of Finance, and Government of India.
The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2017 Bill has been passed by
Rajya Sabha and is expected to strengthen the banking sector.
Further initiatives:
The advancements in technology have brought the mobile and internet banking services to
the fore. The banking sector is laying greater emphasis on providing improved services to
their clients and also upgrading their technology infrastructure, in order to enhance the
customer's overall experience as well as give banks a competitive edge.
Many banks, including HDFC, ICICI and AXIS are exploring the option to launch contact-
less credit and debit cards in the market shortly. The cards, which use near field
54
communication (NFC) mechanism, will allow customers to transact without having to insert
or swipe.
Exchange Rate Used: INR 1 US$ 0.016 as on FY2018.
OBJECTIVES OF HDFC BANK
1. To know which service quality dimension of bank is performing well.
2. To examine the essential dimension of service quality like reliability, assurance,

tangibility, empathy and responsiveness of hdfc bank and its effect on customer satisfaction.
3. To evaluate and analyse various facts of the performance of company.
4. To determine the liquidity, profitability and efficiecy of the project.
5. To study the financial system position of the hdfc bank.
6.To study the organizational structure of the hdfe bank.
IMPORTANCE AND SIGNIFICANCE
1. To develop close relationship with individuals households.
2. To maintain its position as premiere housing finance institution in the country.
3. To provide consistently high returns to the shareholders.
4. To transforms ideas into variable and creative situation.
5. To know customer view points and expectation about the product and services of bank.
SCOPE OF RESEARCH STUDY
The scope of this research is to identify the service quality of HDFC bank. This research is
based on primary data and secondary data. This study only focuses on the dimensions of
service quality i.e. RATER. It aims to understand the skill of the company in the area of
service quality that are performing well and shows those areas which require improvement.
55
The study was done taking two branches of HDFC bank into consideration. The survey was
restricted to the bank customers in Delhi only.
HYPOTHESIS:
Ho: There is no significant difference among return on assert ratio of HDFC & ICICI.
Ha: There is significant difference among return on assert ratio of HDFC & ICICI.
 REVIEW OF LITERATURE
A literature review is a description of the literature relevant to a particular field or topic. It

gives an overview of what has been said, who the key writers are, what are the prevailing
theories and hypotheses, what questions are being asked and what methods and
methodologies are appropriate and useful. As such, it is not in itself primary research, but
rather it reports on other findings.
Article 1
Title: Kotler Philip marketing management, (Pearson Education, 12 edition)
Author: Baldinger and Rubinson
About the Research:
In their article, perceived that customer loyalty was concerned with the likelihood of a
customer returning, making business referrals, providing strong word-of-mouth references
and publicity. Loyal customers were less likely to switch to a competitor due to price
inducement, and these customers made more purchases compared to less loyal customers.
However, customers who were retained may not always be satisfied and satisfied customers
may not always be retained. Customers may be loyal due to high switching barriers or the
lack of real alternatives; customers may also be loyal because they were satisfied, thus
wishing to continue with the relationship.
Article 2
Title: Marketing Strategies (Apllied Orientation, 5th Edition)
56
Author: Royne Mercurio.
About the Research:
In his article, provided the initial direction in determining the proper SQ attributes to focus on
promotional efforts when banks have a target market at least partially defined by gender and
age. Further, gender and age were not the only characteristics on which marketing efforts
should be based. Therefore, other segmentation variables, such as psychographics,
geographies and benefits sought must be considered when developing marketing and
advertising strategies.
Article 3
Title: Customer Loyality is Powerful Tool (Integrated Customer, 6 edition)
Author: Kandampully
About the Research:
In his article, focused that the customers at the time of service delivery interact closely with
the service providers and got an inside knowledge of the service organization. This
knowledge gave them an opportunity to critically assess the services provided and the service
provider. Thus service quality plays an important role in adding value to the overall service
experience. Also customers seek organizations that were service loyal i.e. aim to provide
consistent and superior quality of service for present and long term and organizations aiming
for this are bound to get customers' loyalty.
Article 4
Title: Customer Seek Organization for Service Loyality, 4th Edition.
Author: M.K. Rampal
About the Research:
57
Acknowledged that the internet banking was an innovative distribution channel that offered
less waiting time and a higher spatial convenience than traditional branch banking with
significantly lower cost structure than traditional delivery channels. Internet banking reduced
not only operational cost to the bank but also led to higher levels of customers' satisfaction
and retention. As a result internet banking was very attractive to banks and consumers', who
had higher acceptance to new technology.
Article 5
Title: Consumer Expectation of Service Provider (Integrated Customer, 5th edition)
Author: Natarajan, R. Balaram, A. and Venkata Ramana, S.
About the Research:
In their article, reported on the development and application of a service template as a

diagnostic tool for identifying opportunities for improvements in the service package. The
operations in the branch of a bank in Bangalore, India, provide the context. For twenty one
service attributes, the gap between the expectations of a target customer group and the actual
service experience was assessed through a customer survey. A service template graphically
displaying the mean values of the responses for the expectations and the perceived service
was constructed.
Article 6
Title: Service Marketing Strategies (Integrated Customer, 4ª edition)
Author: Clinton O. Longenecker, Joseph A. Scazzero
About the Research:
In their article, indicated that a successful facility exhibited greater attention to the human
aspects of the quality process than the unsuccessful facility. For example, a greater degree of
management support for TOM, communication and teamwork between managers and
workers, effective corrective action procedures and follow-up of quality problems. While this
study was limited in scope to two operations within the same organization, lessons for the
successful implementation of service quality could be drawn from this case study.
58
RESEARCH METHODOLOGY:
Research methodology is a process used to collect information and data for the purpose of
making business decisions. The methodology may include publication research, interviews,
surveys and other research techniques, and could include both present and historical
information.
RESEARCH DESIGN
A research design is a systematic approach that a researcher uses to conduct a scientific

study. It is the overall synchronization of identified components and data resulting in a
plausible outcome. To conclusively come up with an authentic and accurate result, the
research design should follow a strategic methodology, in line with the type of research
chosen.
In this report I have used descriptive research technique. Descriptive research is used to
describe characteristics of a population or phenomenon being studied. This research includes
survey and fact-finding inquiries of different kind.
SOURCE OF DATA
Primary data is the data which is collected through personal contact. Through questionnaire-
The questionnaire is written set of questions through personal contact- in personal contact- in
personal interaction ask question in face-to-face contact to other person Secondary data is the
data which are available in the form of fact and figures. The source of secondary data are:
Websites
Magazines
Articles
Data collection
1. Primary data sources
 Through interaction with banking care consultant.
59
 Through questionnaire filled from the banking care consultant.
2. Secondary data sources
 Through internet, various official sites of the companies.
 Through pamphlets and brochures of the companies.
 Through books which cover the banking factors.
1. Primary data
The primary data are the first hand information gathered for research to solve the need by
surveying the sampling units and collection of feedback from them involves the primary data
with structured queries will be prepared for the customers. There will be survey within the
customers giving the questionnaire. The questionnaire were structured non disguised
questionnaire which the questionnaire contained, were arranged in a specific order besides
the questions asked were logical for the study, no questions can be termed as irrelevant.
Sources of primary data:
 Personal interview
 Questionnaire
Personal interview
This method was the most appropriate way of survey, because by personal interview I came
to know about how the respondents feel about the banking companies. The personal interview
is conducting mainly for collecting information for fulfill of the questionnaire.
Questionnaire
This method proved to be even better because it was not possible to interview every one and
it was less time consuming to fill up the questionnaire rather than answering the interviewer's
questions. The questionnaire is to prepare to know the awareness level. The questionnaire is
60
fully focused for collecting the brand awareness information and findings the market
potential of Banking Company.
In this method questionnaire were distributed to the respondence and they were asked to
answer the questions in the questionnaire. The questionnaire were structured non disguised
questionnaire because the questions which the questionnaire contained, were arranged in a
specific order every besides every questions asked were logical for the study, no questions
can be termed as irrelevant,
2. Secondary data
The secondary data is collected from the company websites and other websites, through
listing by personal observation. The secondary data are collected by some other people for
their work and it is already exit. The researcher started investigation by first examining the
secondary data to see whether the problem can be partly or fully solved by without collecting
primary data. Since the secondary data were not sufficient to solve the entire problem, so
primary data were not sufficient were collected to fill the gap.
Sources of secondary data:
 Through internet, various officials sites of the companies and other search engines.
 Through pamphlets and brochures of the companies.
 Journals and magazine.
Data collection instruments
Questionnaire were designed as a main instrument to conduct survey. A questionnaire

constraint of 9 set of questions presented to respondents for their answers. The questionnaire
was non-disguised because the questionnaire was constructed so that the objective is clear to
the respondent. The respondents were aware of the objectives. They knew why they were
asked to fill the questionnaire. The questionnaire is used for the purpose is used for the
purpose of knowing the brand awareness among Banking Company and changing investment
pattern of people of Mumbai city.
61
Field work
Field work is done in this project individually with no biasness. The field work comprises of
filling of questionnaire by different sector individuals. The framed questionnaire was
presented for approval for to college internal guide and company external guide. The study
involved a fieldwork where the consumer contacted individually and were persuaded to
discharge the information through the questionnaire.
 DATA ANALYSIS AND INTERPRETATION
1) Since how many year you are dealing with HDFC BANK?
Years Response
Less than 1 year 7
1 to 2 year 9
3 to 5 year 13
More than 5 year 6
Total 35
Interpretation:
62
 26% Respondents have their account in HDFC bank for more than 5 years.
 17% Respondents are new account holders in bank.
2) What kind of facility are you using at HDFC bank?
Services Response
Saving a/c 11
Current a/c 15
Salary a/c 6
Other Demat a/c 3
:
 From above chart it is clear that 31% respondents are saving account holder.
 Major respondents are current account holder.
63
 9% respondents are other account holders which includes D-mat account and others.
 17% are salary account holders.
3)’Are you aware of other services provided by HDFC bank?
Option Response
Yes 21
No 14
Total 35
Interpretation:
 This chart shows that 60% Respondents are aware of other different facilities
provided by HDFC bank while other are unknown.
4) What kind of additional service would like to have?

Services Response
Mobile banking 7
64
ATM 8
Net banking 14
Bill payment 6
Total 35
Interpretation:
 Chart shows that most of respondents are interested in banking with 40% strength.
 7% interested in ATM service.
 20% like to use mobile banking.
 23% have to like bill payment.
5) Are you aware of any other extra services?
Services Response
Loan 16
Insurance 8
FD 4
Mutual Funds 7
Total 35
65
Interpretation:
 46% respondent selected loans which show highest level of awareness.
 Few respondent are aware about fixed deposit with 11% strength.
 23% respondent selected insurance while 20% has selected mutual fund.
6) What is your perception regarding service of HDFC bank?
Ratings Response
Very satisfactory 10
Satisfactory 18
Good 5
Poor 2
Total 35
66
Interpretation:
 53% respondent are satisfy with HDFC bank while 6% say that services are poor
 15%,26% respondents says that services are good and satisfactory.
7) How likely you will recommended HDFC bank Services?
Issue Response
Employee Behavior 5
Facility 12
Time issue 13
Other 5
Total 35
67
Interpretation:
 37% respondents has issue regarding time spend on waiting
 34% has says facility is poor
 15% and 14% respondent are facing problem with employees and other issues.
8) How likely you will recommended HDFC bank Services?
Rating Sales
Very likely 11
Likely 13
Somewhat 8
Unlikely 3
Total 35
68
Interpretation:
 37% respondents are willing to suggest their friend to join HDFC bank.
 8% are unwilling to recommend.
9) What is your overall satisfaction rating with bank?
Issue Response
Employee 5
Behavior
Facility 12
Time issue 13
Other 5
Total 35
69
Interpretation:
 37% respondent says that they are satisfy with services while 31% are very satisfy
with HDFC bank's facility.
 9% respondents provide poor rating.
 TABULATION OF DATA:
BALANCE SHEET OF HDFC BANK
BALANCE SHEET OF MAR 19 MAR 19 MAR 18 MAR 18 MAR 17
HDFC BANK (in Rs.
Cr.)
12 mths 12 mths 12 mths 12 mths 12 mths
EQUITIES AND
LIABILITIES
SHAREHOLDER S
FUNDS
Equity Share Capital 544.66 544.66 519.02 519.02 512.51
TOTAL SHARE 544.066 544.66 519.02 519.02 512.51
CAPITAL
Revaluation Reserve 0.00 0.00 0.00 0.00 0.00
Reserves and Surplus 148,661.69 148,661.66 105,775.98 105,775.98 88,949.84
Total Reserves and 148,661.69 148,661.66 105,775.98 105,775.98 88,49.84
Surplus
TOTAL 149,661.69 149,206.32 106,295.00 106,295.00 89,462.35
SHAREHOLDERS
FUNDS
Deposits 923,140.93 923,140.93 788,770.64 788,770.64 643,639.66
Borrowings 117,085.12 117,085.12 123,104.97 123,104.97 74,028.87
Other Liabilities and 55,108.29 55,108.33 45,763.72 45,763.72 56,709.32
Provisions
TOTAL CAPITAL 1,244,540.6 1,244,540.71 1,063,934.32 1,063,934.32 863,840.19
AND LIABILITIES 9
ASSETS
Cash and Balances with 46,763.62 46,763.62 104,670.47 104,670.47 37,896.88
Reserve Bank of India
Balances with Banks 34,584.02 34,584.02 18,244.61 18,244.61 11,055.22
Money at Call and
70
Short Notice
Investments 290,587.88 290,587.88 242,200.24 242,200.24 214,463.34
Advances 819,401.22 819,401.22 658,333.09 658,333.09 554,568.20
Fixed Assets 4,030.00 4,030.01 3,607.20 3,607.20 3,626.74
Other Assets 49,173.95 49,173.97 36,878.70 36,878.70 42,229.82
TOTAL ASSETS 1,224,540.6 1,244,540.71 1,063,934.32 1,063,934.32 863,840.19
9
OTHER
ADDITIONAL
INFORMATION
Number of Branches 5,103.00 0.00 4,787.00 4,787.00 4,715.00
Number of Employees 98,061.00 0.00 88,253.00 88,253.00 84,325.00
Capital Adequacy 17.00 17.00 15.00 15.00 15.00
Ratios (%)
KEY PERFORMANCE
INDICATORS
Tier 1 (%) 16.00 0.00 13.00 13.00 13.00
Tier 2 (%) 1.00 0.00 2.00 2.00 2.00
ASSETS
QUALITY
Gross NPA 11,224.16 11,224.16 8,606.97 8,606.97 5,885.66
Gross NPA % 1.00 1.00 1.00 1.00 1.00
NET NPA % 0.00 0.00 0.00 0.00 0.00
Net NPA to advance 0.00 0.00 0.00 0.00 0.00
payment. %
CONTINGENT
LIABILITIES
Bills for Collection 49,952.80 0.00 42,753.83 42,753.83 30,848.04
Contingent Liabilities 1,024,715.1 0.00 875,488.23 875,488.23 817,869.59
2
PROFIT AND LOSS ACCOUNT OF HDFC BANK

PROFIT & LOSS ACCOUNT MAR 18 MAR 17 MAR 16 MAR 15 MAR 14
OF HDFC BANK (in Rs. Cr.
12 Months 12 Months 12 Months 12 Months 12 Months

Interest/Discount on 77,544.19 62,661.79 525,055.26 44,827.86 37,180.79
Advances/Bills
Income from 19,997.46 16,222.37 15,944.34 14,120.03 10,705.61
Investments
Interest on Balance 635.70 523.88 532.02 361.61 517.10
with RBI and Other
Inter-Bank funds
Others 794.70 833.31 774.34 911.95 66.41
71
TOTAL INTEREST 98,972.05 80,241.36 69,305.96 60,221.45 48,469.30
EARNED
Other Income 17,625.88 15,220.30 12,296.50 10,751.72 8,996.35
TOTAL INCOME 116,597.94 95,461.66 81602.46 70,973.17 57,466.26
EXPENDITURE
Interest Expended 50,728.83 40,146.49 36,166.73 32,629.93 26,074.24
Payments to and 7,761.76 6,805.74 6,483.66 5,702.20 7,750.96
Provisions for Employees
Depreciation 1,140.10 906.34 833.12 705.84 656.30
Operating Expenses 17,217.51 14,978.30 12386.55 10,571.66 8,580.29
(excludes Employee Cost
& Depreciation)
TOTAL OPERATING 26,119.37 22,690.38 19,703.34 16,979.70 13,987.54
EXPENSES
Provision Towards 12,129.61 10,107.25 7,916.97 6,507.59 5,204.03
Income Tax
Provision Towards -1,008.12 -896.68 -327.54 -165.88 -91.23
Deferred Tax
Depreciation 7,550.08 5,927.49 3,593.31 2,725.61 2,075.01
TOTAL PROVISIONS 18,671.57 15,138.06 11,182.74 9,067.32 7,188.56
AND
CONTINGENCIES
TOTAL 95,519.77 77,974.93 67,052.82 58,676.96 47,250.34
EXPENDITURE
NET PROFIT/ LOSS 21,078.17 17,486.73 14,549.64 12,296.21 10,215.92
FOR THE YEAR
Profit/Loss Brought 40,453.42 32,668.94 23,527.69 18,627.79 14,654.15
Forward
TOTAL PROFIT/ 61,531.58 50,155.67 38,077.33 30,924.01 24,870.07
LOSS AVAILABLE
FOR
APPROPRIATION
APPROPRIATIONS
Transfer To/From 5,269.54 4,371.68 3,637.41 3,074.05 2,553.98
Statutory Reserve
Transfer To/From 105.34 235.52 313.41 222.15 224.92
Capital Reserve
Transfer To/From 0.00 0.00 0.00 0.00 0.00
Revenue And Other
Reserve
Dividend and Dividend 0.00 3,390.58 -1.69 -11.71 0.84
Tax for The Previous
Year
Equity Share Dividend 4,052.59 0.00 0.00 2,401.78 2,005.20
Tax On Dividend 0.00 0.00 0.00 488.95 408.21
Balance Carried Over 49,223.30 40,453.42 32,668.94 23527.69 18,627.79
To Balance Sheet
TOTAL 61,531.58 50,155.67 38,077.33 30,924.01 24,870.07
APPROPRIATIONS
72
OTHER
INFORMATION
EARNINGS PER
SHARE
Basic EPS (Rs.) 78.65 67.76 57.18 48.84 42.00
Diluted EPS (Rs.) 77.87 66.84 56.43 48.26 42.00
DIVIDEND
PERCENTAGE
Equity Dividend 750.00 650.00 550.00 475.00 400.00
Rate (%)
Auditor's Report
Report on the Audit of the Standalone Financial Statements.
Opinion
We have audited the accompanying standalone financial statements of HDFC Bank Limited
("the Bank"), which comprise the Balance sheet as at March 31, 2019, the Profit and Loss
Account, the Cash Flow Statement for the year then ended, and notes to the financial
statements, including a summary of significant accounting policies and other explanatory
information.
In our opinion and to the best of our information and according to the explanations given to
us, the aforesaid standalone financial statements give the information required by the
Banking Regulation Act, 1949 as well as the Companies Act, 2013 ("the Act") in the manner
so required for banking companies and give a true and fair view in conformity with the
accounting principles generally accepted in India, of the state of affairs of the Bank as at
March 31, 2019, its profit and its cash flows for the year ended on that date.
Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with the
Standards on Auditing (SAS), as specified under section 143(10) of the Act. Our
responsibilities under those Standards are further described in the 'Auditor's Responsibilities
for the Audit of the Standalone Financial Statements' section of our report. We are
independent of the Bank in accordance with the 'Code of Ethics" issued by the Institute of
Chartered Accountants of India together with the ethical requirements that are relevant to our
audit of the standalone financial statements under the provisions of the Act and the Rules
73
thereunder, and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the Code of Ethics, We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis. for our audit opinion on the standalone financial
statements.
Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the standalone financial statements for the financial year ended
March 31, 2019. These matters were addressed in the context of our audit of the standalone
financial statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters. For each matter below, our description of how our audit
addressed the matter is provided in that context
We have determined the matters described below to be the key audit matters to be
communicated in our report. We have fulfilled the responsibilities described in the "Auditor's
Responsibilities for the Audit of the Standalone Financial Statements" section of our report,
including in relation to these matters. Accordingly, our audit included the performance of
procedures designed to respond to our assessment of the risks of material misstatement of the
standalone financial statements. The results of our audit procedures, including the procedures.
performed to address
the matters below, provide the basis for our audit opinion on the accompanying standalone
financial statements.
Information Other than the Standalone Financial Statements and Auditor's Report
Thereon
The Bank's Board of Directors is responsible for the other information. The other information
received by us comprises the information included in the Basel III Pillar 3 disclosures and
graphical representation of financial highlights (but does not include the financial statements
and our auditor's reports thereon), which we obtained prior to the date of this auditor's report,
and Annual Report, which is expected to be made available to us after that date.
Our opinion on the standalone financial statements does not cover the other information and
we do not express any form of assurance conclusion thereon.
74
In connection with our audit of the standalone financial statements, our responsibility is to
read the other information identified above and, in doing so, consider whether such other
information is materially inconsistent with the standalone financial statements or our
knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on
the work we have performed on the other information that we have obtained prior to the date
of this auditor's report, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
When we read the Annual Report, if we conclude that there is a material misstatement
therein. we are required to communicate the matter to those Charged with Governance.
Responsibilities of Management and those Charged with Governance for the

Standalone Financial Statements
The Bank's Board of Directors is responsible for the matters stated in section 134(5) of the
Act with respect to the preparation of these standalone financial statements that give a true
and fair view of the financial position, financial performance, cash flows of the Bank in
accordance with the provisions of Section 29 of the Banking Regulation Act, 1949,
accounting principles generally accepted in India, including the Accounting Standards
specified under section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules,
2014 in so far as they apply to the Bank and guidelines and directions issued by Reserve
Bank of India from time to time.
This responsibility also includes maintenance of adequate accounting records in accordance

with the provisions of the Act for safeguarding of the assets of the Bank and for preventing
and detecting frauds and other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable and prudent; and the
design, implementation and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the standalone financial statements that give a
true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the
Bank's ability to continue as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting unless management either
intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do
so..
75
Those Charged with Governance are also responsible for overseeing the Bank's financial
reporting process.
Auditor's Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial
statements as a whole are free from material misstatement, whether due to fraud or error, and
to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with SAs will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error
andare considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these standalone
financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the standalone financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks,
and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we
are also responsible for expressing our opinion on whether the Bank has adequate internal
financial controls system in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of

accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of

accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Bank's ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditor's report to the related disclosures in the standalone financial
statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
76
based on the audit evidence obtained up to the date of our auditor's report. However, future
events or conditions may cause the Bank to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the standalone financial
statements, including the disclosures, and whether the standalone financial statements
represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those Charged with Governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those Charged with Governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
From the matters communicated with those Charged with Governance, we determine those
matters that were of most significance in the audit of the standalone financial statements for
the financial year ended March 31, 2019 and are therefore the key audit matters. We describe
these matters in our auditor's report unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
 Director's Report
The Directors take great pleasure in presenting the 25th Annual Report on the business and
operations of your Bank, together with the audited accounts for the year ended March 31,
2019. A journey of a thousand miles begins with a single step. Ours began a quarter of a
century back with the launch of the first branch in Mumbai on February 18, 1995. On the
same day in 2019, your Bank entered its silver jubilee year by opening its 5,000th branch
again at Mumbai. Along the way it has metamorphosed from a wholesale bank into one with
77
an equally strong retail presence and is well underway in its journey of offering an omni
channel customer experience. In the semi urban and rural areas, where your Bank has over
half its banking outlets, it is acting as a change agent not only through its banking services
but social initiatives as well under the umbrella brand Parivartan. As it enters its silver jubilee
year, your Bank has impacted the lives of about 10 crore Indians directly or indirectly ie over
4.9 crore customers, the 5 crore plus people through its social initiatives and families of its
over 1.9 lakh employees (including that of its two subsidiaries).
In the year ended March 31, 2019 your Bank continued on this path. This came in an
economic environment where the Indian economy stood out as an outlier despite facing
various challenges both externally and internally. Externally, it was buffeted by volatile crude
prices, rising interest rates in the developed world particularly in the US, heightened trade
tensions and geopolitical uncertainties in some parts of the world. Internally, the economy
was affected by serious concerns regarding the financial health of the NBFC sector, the
continuing high NPA levels in the banking space, slowing consumption demand and some
concerns on the fiscal side. Not to mention the uncertainty caused by the imminent general
elections. The Indian economy however continued to be the fastest growing in the world
thanks to the reforms of the past few years.
In the year under review, your Bank delivered a strong financial performance on the back of
an improvement in a majority of its key parameters.
Financial Parameters
Your Bank recorded an improvement in a majority of its key financial parameters. At Rs.
48,243.2 crore, Net Interest Income rose by 20.3 per cent. Core Net Interest Margin remained
stable at 4.3 per cent. Gross Non-Performing Assets (NPAs) at 1.36 per cent is among the
lowest in the industry. This was largely due to the Bank's prudent credit evaluation of the
targeted customer profile and having a diversified loan book spread across customer
segments, products, and sectors plus managing risk-return decisions with discipline. Your
Bank's Net Profit at Rs. 21,078.1 crore went up by 20.5 per cent.
In addition, the year stood out for one of the largest fund raising in your Bank's history. It
also continued to transform lives through Parivartan and securing recognition.
1) Fund Raising
78
Your Bank raised Rs. 23,715.9 crore in the year under review. This comprises a preferential
allotment to Housing Development Finance Corporation Ltd of Rs. 8,500 crore, a Qualified
Institutional Placement of Rs. 2,775.0 crore and an ADR offering of $ 1,820 million (Rs.
12,440.9 crore). Consequent to the above issuances, share capital increased by Rs. 20.89
crore and share premium increased by Rs. 23,568.7 crore. This is net of share issue expenses
of Rs. 126.3 crore. The issuances were made pursuant to the shareholder and regulatory
approvals. This has resulted in a strengthening of its capital structure, increasing solvency
and shoring up of its Capital Adequacy Ratio.
2) Parivartan
The Bank in the year under review has continued its journey of social commitment through
Parivartan which means change. Your Bank firmly believes that businesses cannot prosper if
the communities in which they operate don't. This is what has been inspiring its social
initiatives. This change has been brought about principally by about 10 per cent of the Bank's
workforce which works on the Sustainable Livelihood Initiative (SLI) which helps people
improve their lives by upgrading their skillsets and, thus, enabling them to break out of the
cycle of poverty. And through its 'Teaching-The-Teacher' (3T) initiative which has
potentially impacted 1.6 crore students as well as the Holistic Rural Development Programme
which has already touched another possible 14.4 lakh people spread across more than 1,100
villages. We are also happy to report that in the year under review, your Bank has met the
mandatory CSR expenditure through a spend of Rs. 443.8 crore.
3) Awards and Recognition
The Bank continued to win awards and laurels. Notably, it was named India's most valuable
brand for the fourth year in a row in the BrandZ survey of Top 50 Most Valuable Indian
Brands. HDFC Bank was also ranked No I in India by customers in the first edition of the
'World's Best Banks' survey by Forbes magazine. The publication partnered with market
research firm Statista to measure the best banks in 23 countries and customers were asked to
rate banks on overall recommendation and satisfaction, as well as on the 5 key attributes
namely: Trust; Terms and Conditions; Customer Service: Digital Device; Financial Advice.
Summary
To sum up, your Bank is geared up for the next phase of growth given the looming market
opportunities and its strong positioning in each of its major franchises. And also make a
79
greater contribution to bridge the divide between India and Bharat be it through its business
or social initiatives. This, of course, would not have been possible without the contribution of
our over 98,000 employees.
Mission and Strategic Focus
Your Bank's mission is to be a 'World-Class Indian Bank. Its business philosophy is based on
five core values: Customer Focus, Operational Excellence, Product Leadership, People and
Sustainability. The last value Sustainability should be viewed in consonance with
Environmental, Social and Governance criteria. As a part of this, HDFC Bank through its
umbrella brand Parivartan seeks to bring about change in the lives of communities mainly in
Rural India.
The business objective has been to continue building sound customer franchises across
distinct businesses so as to be a preferred banking services provider to achieve healthy
growth in profitability consistent with the Bank's risk appetite..
In line with the above, your Bank's business strategy was to take digitisation to the next level
to achieve the following:
- Deliver superior experience and greater convenience to customers
-Increase market share in India's expanding banking and financial services industry.
- Expand geographical reach
- Cross-sell the broad financial product portfolio
-Sustain strong asset quality through disciplined credit risk management
- Maintain low cost of funds
Your Bank is committed to do this while ensuring the highest levels of ethical standards,
professional integrity, corporate governance and regulatory compliance. This is articulated
through a well-documented Code of Conduct that every employee has to affirm annually that
he/she will abide by..
As on March 31, 2019, the issued, subscribed and paid up capital of your Bank stood at Rs.
5,446,613,220 comprising 272,33,06,610 equity shares of Rs. 2 each. During the year under
review, the Bank issued 3.90,96,817 equity shares to Housing Development Finance
Corporation Limited on a preferential basis, 1,28,47,222 equity shares on a qualified
80
institutions placement and 5,25,00,000 equity shares underlying 1,75,00,000 American
Depository Receipts (ADRs). Further, 2,37,72,304 equity shares of face value of Rs. 2 each
were issued pursuant to exercise of Employee Stock Option (ESOP) by the Bank. The
information pertaining to ESOPs is given in ANNEXURE I to this report.
The Board of Directors at its meeting held on May 22, 2019 considered and approved the
sub-division of one equity share of the Bank having face value of Rs. 2/- each into two equity
shares of face value of Re. 1/- each and consequential alteration in the relevant clauses
relating to capital of the Memorandum of Association of the Bank. The sub-division of equity
shares as above is subject to the approval of the members at the ensuing Annual General
Meeting of the Bank.
Further, the Bank had issued 1,14,30,383 underlying equity shares representing Global
Depository Receipts (GDRs) of the Bank, which are listed on the Luxembourg Stock
Exchange. The Depository for GDRs is represented in India by J.P Morgan Chase Bank N.Α.
Due to low trading/conversion volume in GDR, the Board of Directors of the Bank at its
meeting held on April 20, 2019 has decided to terminate the GDR program. requisite notice
of termination is being issued to the custodian and the depository.
Capital Adequacy Ratio (CAR)
As on March 31, 2019 your Bank's total CAR, calculated in line with Basel III capital
regulations, stood at 17.1 per cent well above the regulatory minimum of 11.025 per cent
including the Capital Conservation Buffer of 1.875 per cent. Of this, Tier I CAR was 15.8 per
cent. The effect of the proposed dividend has been taken into account in computing these
ratios.
Other Statutory Disclosures
Number of Meetings of the Board, attendance, meetings and constitution of various

Committees
The details of Board meetings held during the year, attendance of Directors at the meetings
and constitution of various Committees of the Board are included separately in the Corporate
Governance Report.
Extract of Annual Return
81
Pursuant to Section 134 (2) (a) and Section 92 (3) of the Companies Act, 2013, the extract of
the Annual Return in the prescribed format (MGT-9) is annexed as ANNEXURE 3 to this
Report. Further, the Annual Return of the Bank in the prescribed Form MGT-7 is available
on the website of the Bank at the link www.hdfcbank.com Requirement for maintenance of
cost records:
The Bank is not required to maintain cost records as specified by the Central Government
under section 148(1) of the Companies Act, 2013 Directors' Responsibility Statement
Pursuant to Section 134 (3) (c) read with Section 134 (5) of the Companies Act, 2013, the
Board of Directors hereby state that:
In the preparation of the annual accounts, the applicable accounting standards have been
followed along with proper explanation relating to material departures, if any
We have selected such accounting policies and applied them consistently and made
judgments and estimates that are reasonable and prudent so as to give a true and fair view of
the state of affairs of the Bank as on March 31, 2019 and of the profit of the Bank for the year
ended on that date.
We have taken proper and sufficient care for the maintenance of adequate accounting records
in accordance with the provisions of the Companies Act, 2013, for safeguarding the assets of
the Bank and for preventing and detecting fraud and other irregularities.
We have prepared the annual accounts on a going concern basis.
We have laid down internal financial controls to be followed by the Bank and ensure that
such internal financial controls were adequate and operating effectively.
We have devised proper systems to ensure compliance with the provisions of all applicable
laws and that such systems were adequate and were operating effectively.
Compliance with Secretarial Standards
The Bank is in compliance with all applicable Secretarial Standards as notified from time to
time.
Auditors
The Bank's current Statutory Auditors are S. R. Batliboi & Co. LLP, Chartered Accountants.
S. R. Batliboi & Co. LLP were appointed as Statutory Auditor at the previous AGM of the
82
Bank, to hold office till the conclusion of the ensuing AGM. It is now proposed to appoint S.
R. Batliboi & Co. LLP, Chartered Accountants, as Statutory Auditor of the Bank for period
of three years with effect from the conclusion of the ensuing AGM. such that their total
appointment does not exceed 4 years, which is the maximum permissible term as per Reserve
Bank of India, at such fees as detailed in the Notice of the 25th AGM of the Bank.
Directors and Key Managerial Personnel
In compliance with Section 152 of the Companies Act, 2013, Mr. Srikanth Nadhamuni will
retire by rotation at the ensuing Annual General Meeting and is eligible for re-appointment
During the year. Mr. Partho Datta and Mr. Bobby Parikh ceased to be Directors of the Bank
from close of business hours on September 29, 2018 and January 26, 2019 respectively, on
completing the maximum permitted tenure of eight years as per Banking Regulation Act,
1949. Your Directors place on record their sincere appreciation for the contribution made by
Mr. Partho Datta and Mr. Bobby Parikh during their tenure with the Bank and wishes them
well in their future endeavours.
Mr. Paresh Sukthankar, Deputy Managing Director, tendered his resignation from the Board
of the Bank on August 10, 2018 which came into effect from November 8, 2018. The Board
places on record their sincere appreciation for the contribution made by Mr. Paresh
Sukthankar during his tenure with the Bank and wishes him well in his future endeavours.
Mr. Sanjiv Sachar, Mr. Sandeep Parekh and Mr. M. D. Ranganath were appointed as
Additional Independent Directors on the Board of the Bank with effect from July 21, 2018,
January 19, 2019 and January 31, 2019 respectively, subject to the approval of the
shareholders.
The brief resume / details regarding the Directors proposed to be appointed / re-appointed as
above is furnished in the report on Corporate Governance. There have been no changes in the
Directors and Key Managerial Personnel of the Bank other than the above.
Particulars of Employees
The information in terms of Rule 5 of the Companies (Appointment and Remuneration of

Managerial Personnel) Rules, 2014 is given in ANNEXURE 6 and ANNEXURE 7 to this
report.
Conservation of Energy, Technology Absorption. Foreign Exchange Earnings and Outgo
83
(A) Conservation of Energy
Your Bank has undertaken several initiatives in this area such as:
Installation of green locks and AC controllers in air conditioning machines in order to save
energy and support go-green initiative.
Installation of energy capacitors at high consumption offices to control the power factor and
to reduce energy consumption
All main signboards in branches switched off post 10 p.m.
Put controls on usage of lifts, ACs, common passage lights and other electrical equipment
Reduction of contract demand at Kanjurmarg Hub,
Replacement of CFL Lamps with LED fixtures at Kanjurmarg Hub / WBO/Fort Mumbai/
Bank House Indore
Provision of LED lamps at branches and offices
Provision of solar panels for captive power generation at our offices in Pune and
Bhubaneswar, Noida (Sector 4)
Monitoring and energy saving initiative for 100 branches resulting in power saving of over 10
per cent. The Bank won an award in National Energy Efficiency Circle Competition 2017 -
Winner Best Energy Efficient Case study held by CII in May 2017. Considering the benefits
accrued, it further extended the monitoring programme to an additional 500 branches across
the country and the results have shown power savings over 10%.
(B) Technology Absorption
Your Bank has been at the forefront of using technology absorption and evaluates innovative
technology with multiple fintech partners. It has launched a formal Consumer Durable Loans
portfolio and product with on-line real-time Digital API based collaboration with third party
and fintech application sourcing platforms. Your Bank is leveraging API based Service
Oriented Architecture and Middleware for enabling digital initiatives and empowering
relationship managers at branches with digital products and services platforms. Your Bank
has also begun using robotics and artificial intelligence in digital commerce, corporate supply
chain. and payment settlement systems to reduce time to market and turnaround time.
(C) Foreign Exchange Earnings and Outgo
84
During the year, the total foreign exchange earned by the Bank was Rs. 1,720.4 crores (on
account of net gains arising on all exchange derivative transactions) and the total foreign
exchange outgo was Rs. 2.130.5 crores towards the operating and capital expenditure
requirements.
Secretarial Audit
In terms of Section 204 of the Companies Act, 2013 and the Rules made thereunder, M/s,
BNP & Associates, Practicing Company Secretaries had been appointed as Secretarial
Auditors of the Bank for the financial year 2018-19. The report of the Secretarial Auditors is
enclosed as ANNEXURE 8 to this Report. There are no
observations/qualifications/comments in the Report of the Secretarial Auditor.
Corporate Governance
In compliance with Regulation 34 and other applicable provisions of the Securities and
Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,
2015, a separate report on Corporate Governance along with a certificate of compliance from
the Secretarial Auditors, forms an integral part of this Report.
Business Responsibility Report
The Bank's Business Responsibility Report containing a report on its Corporate Social
Responsibility Activities and Initiatives in the format adopted by companies in India as per
the guidelines of the Securities and Exchange Board of India in this regard is available on its
web site www.hdfcbank.com Information under the Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act, 2013
The relevant information is included in the Corporate Governance Report
Acknowledgement
Your Directors would like to place on record their gratitude for all the guidance and co-
operation received from the Reserve Bank of India and other government and regulatory
agencies. Your Directors would also like to take this opportunity to express their appreciation
for the hard work and dedicated efforts put in by the Bank's employees and look forward to
their continued contribution in building a World Class Indian Bank. Conclusion
85
It has been a challenging year for the Indian economy externally as well as internally. The
good news is that despite the challenges of volatile oil prices, trade wars, rising interest rates,
and domestic uncertainties due to the impending general elections in India and slowing
consumption demand, India remained the world's fastest growing economy. Your Bank
which grew faster than the system in the year under review is well poised to tap the
opportunities of what is still an under penetrated market by leveraging its strong balance
sheet and franchise.
As always, your Bank will continue to be judicious. It will continue to leverage its
distribution strength and digital platforms to offer a similar experience to customers across
urban, semi-urban and rural India.
Needless to say, the Bank will continue to focus on its five core values, namely, Customer
Focus, Operational Excellence, Product Leadership, People and Sustainability. Its
commitment to the highest possible standards of corporate governance remains unwavering
even as it embarks on the next stage of its evolution to continue delivering sustainable growth
to all its stakeholders,
On behalf of the Board of Directors
Mrs. Shyamala Gopinath
Chairperson
Mumbai, May 22, 2019
 SWOT ANALYSIS
STRENGTH OF HDFC BANK:
86
HDFC bank is the second largest private banking sector in India having 2,201 branches and
7.110 ATM's HDFC bank is located in 1.174 cities in India and has more than 800 locations
to serve customers through Telephone banking The bank's ATM card is compatible with all
domestic and international Visa/Master card, Visa Electron/ Maestro, Plus/cirus and
American Express. This is one reason for HDFC cards to be the most preferred card for
shopping and online transactions HDFC bank has the high degree of customer satisfaction.
when compared to other private banks The attrition rate in HDFC is low and it is one of the
best places to work in private banking sector HDFC has lots of awards and recognition, it has
received 'Best Bank' award from various financial rating institutions like Dun and Bradstreet,
Financial express, Euro money awards for excellence, Finance Asia country awards etc
HDFC has good financial advisors in terms of guiding customers towards right investments.
WWEAKNES OF HDFC BANK
HDFC bank doesn't have strong presence in rural areas, where as ICICI bank its direct
competitor is expanding in rural market HDFC cannot enjoy first mover advantage in rural
areas. Rural people are hard core loyal in terms of banking services. HDFC lacks in
aggressive marketing strategies like ICICI. The bank focuses mostly on high end clients
Some of the bank's product categories lack in performance and doesn't have reach in the
market the share prices of HDFC are often fluctuating causing uncertainty for the investors
36.
O-OPPORTUNITIES OF HDFC BANK
HDFC bank has better asset quality parameters over government banks, hence the profit
growth is likely to increase the companies in large and SME are growing at very fast pace.
HDFC has good reputation in terms of maintaining corporate salary accounts HDFC bank has
improved it's bad debts portfolio and the recovery of bad debts are high when compared to
government banks HDFC has very good opportunities in abroad Greater scope for
acquisitions and strategic alliances due to strong financial position
THREATS OF HDFC BANK
87
The non banking financial companies and new age banks are increasing in India The HDFC
is not able to expand its market share as ICICI imposes major threat The government banks
are trying to modernize to compete with private banks RBI has opened up to 74% for foreign
banks to invest in Indian market.
 SUGGESTION
 Majority of customer are satisfy with HDFC bank service and prefers to use HDFC
bank.
 Majority of customers are aware of services provided by HDFC bank.
 Majority of customers fined banking facility of HDFC bank satisfactory.
 Majority of customers are willing to recommended HDFC bank to their friends.
 Respondents says that they are facing issues regarding time and facility while few has
Some issue with employee behaviour.
 The perception of customer regarding the bank is satisfactory because majority of the
customer are satisfy with the bank and they also recommend the product of the bank.
 The more prefers extra service is Net banking and less prefers service are bill
Payment, ATM and mobile banking.
 Majority of customer are satisfy with dealing of employees.
 Main factor that attracts customers towards banks are services of bank.
 References
88
1. Vinod, R.R. (2013). Efficiency of Old Private Sector Banks in India: a DEA approach".
International journal of management and social science research, vol.2, no.6. 2. Gupta,
sumeet, & Verma, Renu. (2008). Comparative Analysis and Financial Performance of Private
Sector Banks in India: Application of CAMEL model, Journal of global economy, vol. 4,
no.2. 3. Balasubramanian, C.S. (2010). Non-performing assets and profitability of
commercial banks in India: assessment and emerging issues. 4. Mishra, Ashwini, kumar,
Gadhaia, Jigar, Prasah, kar, Bibha, Biawabas Patra & Anand, Shivi (2013) Are private sector
banks more sound and efficient than public sector banks? Assessment based on CAMEL and
DEA approaches. 5. Kaur, Avneet. (Nov. 2012) An Empirical Study on the performance
evaluation of public sector banks in India, vol. 1, issue 11. 6. Madaan, Chitra. Public, Private
and Foreign banks: A Comparison. 7. Gupta, Omprakash K., Doshit, Yogesh, & Chinubhai.
Aneesh. (2008). Dynamics of Productive Efficiency of Indian Banks, International Journal of
Operations Research, 5(2). 8. Kumar, Sunil. (2009). Measuring Efficiency, Effectiveness
 CONCLUSION
89
At the end I would like to conclude that the Indian banking market is growing at an
astonishing rate. HDFC bank has distribution network of 4,715 branches and 12.260 ATMs.
across 2,657 cities in India. The majority of customers are prefers HDFC bank but bank
should target rest of customer who are not satisfied. Customers are aware about bank services
but bank should try to create more awareness among people. The main aim of this study to
cheque the financial performance of this banks of these two private leading banks. financial
statement analysis plays an important role to check the financial performance.
This study reveals that the performance of HDFC bank Is far more better than the
performance of ICICI bank. This study reveals the overall performance of these two banks
with the respected to their consecutive five year Past data and from these study I got to know
that ICICI bank performance is not satisfactory as compared with HDFC bank.
 More stress should given on the advertisement and promotion activities.

 The bank should make more effort in improving good relationship with customer.
 The bank should enhance their service according to customer.
 The bank should make its procedure less time consuming.
 The bank should make effort to aware the customer about all their extra services,
90
A study on customer preference of banks based on
convenience and variety of services provided.
Indicates required question.
1. Name*
________________________________________________________
________________________________________________________
________________________________________________________
________________________________________________________
________________________________________________________
2. Occupation *
3. Annual income*
__________________________________________________________________
4. Name of your bank
__________________________________________________________________
5. Do you think that your bank caters (satisfy) all your banking needs? *
Check all that apply.
YES
NO
91
6. What kind of account do you maintain in this bank?
Current A/c
Saving A/c
Loan A/c
Demat A/c
Other
7. For the past how many years are you using the bank services?
_____________________________________________________________________
8. Which of the following facilities is given more importance in your bank? *
ATM facility
Loan facility
Overdraft facility
Other:
9. Does your bank have core banking facility to the costomer?
Mark only one oval.
Yes
No
Maybe
92
14. What do you feel about overall service quality of your bank? *
Mark only one oval.
Excellent
Very good
Good
Fair
Poor
93

An Analytical Study of HDFC

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An Analytical Study of HDFC

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PROJECT ON

AN ANALYTICAL STUDY OF HDFC BANK

MISS. PARUL SATYANARAYAN CHAURASIA of M.COM 2 Semester

Project Course External Principal

I, PARUL CHAURASIA student of Anjuman-I-Islam's Akbar Peerbhoy

The information submitted is true and original to the best of my knowledge.

Signature of the Student

To list who all have helped me is difficult because they are so

I would like to acknowledge the following as being idealistic

And fresh dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai forgiving

I would like to thank my principal, Prof. (Dr.) Shaukat Ali for

I would also like to express my sincere gratitude towards my project

I would like to thank my College Library, for having provided various

2. INTRODUCTION OF THE TOPIC

3. IMPORTANCE TO THE COMPANY

4. HISTORY OF HDFC BANK

5. SERVICE QUALITY IN BANK

8. GROWTH OF BANKING INDUSTRY IN IN DIA

9. DATA ANALYSIS AND INTERPRETATION

 He should be at least 12 passed.

 Mrs. Shyamala Gopinath

 Nomination and Remuneration Committee

Mr. Keki Mistry

 Fraud Monitoring Committee

 Stakeholders' Relationship Committee

 Credit Approval Committee

REASON FOR SELECTION OF THIS TOPIC:-

LEARNING FROM THE STUDY:

 The process of recruitment for Sales Executives of HDFC Bank.

MISSION STATEMENT OF HDFC BANK.

*World Class Indian Bank.

* Benchmarking against international standards.

* To build sound customer franchises across distinct businesses

VISION STATEMENT OF HDEC BANK

 HISTORY OF HDFC BANK

FORMATION OF THE COMPANY

 TIMES BANK AMALGAMATION

The Bank's Board of Directors is composed of eminent individuals with a wealth of

HDFC Bank operates in a highly automated environment in terms of information technology

II. Corporate Governance Rating

2.2 PRODUCT SCOPE:

 Accounts and deposits.

A. Accounts & Deposits

 Regular Savings Account

C. Investments & Insurance

F. Access Your Bank

 Silver Credit Card

 Offers & Savings

 Offers & Deals

B. Small & Medium Enterprises

C. Financial Institutions & Trusts

 MILESTONES IN THE HISTORY

Business Today Best Bank Award'.

Dun & Bradstreet American Express Corporate Best Bank -Award

The Asian Banker Excellence in Retail Best Retail Bank in India.

Asian Banker Managing Director Aditya Puri won the

The most popular dimensions of service quality--features five dimensions: tangibles,

 It provides for multi-faced analysis of customer satisfaction.

 It links quality with customers" satisfaction and service encounter.

 It provides information at several levels, already organized into meaningful

 It is a proven approach, which results in usable answers to meet customers" needs.

 DIMENSIONS OF SERVICE QUALITY