HDFC BANK

We Understand Your World

BY – AMIT KUMAR
ROLL NO. – 51
BBA-MBA (INT)
SECTION - A
AFTER 20 MINUTES…………..
 BANKING
 ITS HISTORY
 BANKING IN INDIA
 MAJOR PLAYERS
 HDFC BANK
 PROFILE
 BRANCH NETWORK
 BOARD OF DIRECTORS
 MISSON
 BUSINESS STRATEGY
 PRODUCT & SERVICES
Continue…….
 Technology used in HDFC Bank
 Capital structure
 Growth trajectory
 competetor
 Achievements & milestones
 Future plans
 STP
 SWOT analysis
BANKING
 A bank is a financial institution whose primary
activity is to act as a payment agent for
customers and to borrow and lend money.
 Banks are important players in financial markets
and offer financial services such as investment
funds.
 In some countries such as GERMANY, banks are
the primary owners of industrial corporations .
 While in other countries such as the UNITED
STATES banks are prohibited from owning non-
financial companies. 
HISTORY OF BANKING
 The first banks were probably the
religious temples of the ancient world.
 It was probably established sometime
during the third millennium B.C. Banks
probably predated the invention of
money.
 There are extant records of loans from
the 18th century BC in Babylon that
were made by temple priests or monks
to merchants.
BANKING IN INDIA
 Banking in India originated in the last
decades of the 18th century.
 The first banks were THE GENERAL BANK
OF INDIA, which started in 1786, and BANK
OF HINDUSTAN, both of which are now
defunct.
 The oldest bank in existence in India is the
STATE BANK OF INDIA, which originated in
the BANK OF CALCUTTA in June 1806.
 The first fully Indian owned bank was the
ALLAHABAD BANK, established in 1865.
Major players in India
 State Bank of India
 HDFC Bank
 ICICI Bank
 HSBC Bank
 IDBI Bank
 City Bank
 Axis Bank
 Punjab national Bank
 ING Vysya Bank
 Union Bank of India
HDFC BANK

 Housing Development Finance Corporation

 Founded in 1977 by Hasmukh bhai Parakh
 HDFC Bank was incorporated in August 1994
 Among the first in new generation commercial banks
 Registered office in Mumbai, India
 Promoted by HDFC, the parent company
 IPO in India in 1995
 Listed in NSE, BSE, NYSE(ADR)
PROFILE OF HDFC BANK
 Type Public
 Founded 1994
 Headquarters HDFC Bank Ltd.,
Mumbai, India
 Industry Banking, Insurance,
Capital Markets and
allied industries
 Products Loans, Credit Cards,
Savings, Investment
vehicles, Insurance etc.
 Net revenue Rs.2,509.6 crores
 Net income Rs. 4,634.3 crores
 Website www.hdfcbank.com
NETWORK
 761 branches
 1977 ATM’s in the country
 327 cities in India
 All branches are OLRT
connected
 16 branches in Middle east
 6 in Africa
 Representative offices in Hong
Kong, NewYork, London &
Singapore
BOARD OF DIRECTORS
Mr. Jagdish Kapoor , chairman of HDFC
Bank.

Mr. Aditya Puri, Managing director

Keki Mistry, Managing Director

Mr. Harish Engineer, Executive directors

Mr. A Rajan, Country Head-Operations

Mr. Rahul Bhagat, Vice president

Mission
 World Class Indian Bank
 Benchmarking against international
standards.
 Best practices in terms of product
offerings, technology, service levels,
risk management and audit &
compliance.
 To build sound customer franchises
across distinct businesses.
Business Strategy
 Increasing market share in India’s
expanding banking.
 Delivering high quality customer service.
 Delivering more products to more
customers.
 Maintaining current high standards for asset
quality through disciplined credit risk
management.
 Develop innovative products and services
that attract targeted customers and address
inefficiencies in the Indian financial sector.
Product & services
 Travellers Cheques
 credit card
 home loan
 personal loan
 Foreign Currency Cash
 Foreign Currency Demand Drafts
 Cheque Deposits
 Remittances
 Trade Services
 Mutual funds
 Insurance
CONTINUE…….

 Travellers Cheques : Travellers Cheques are a safe

and easy way to protect your money when you travel.
You can encash them only when you need to, and only
against your signature, unlike cash which can be stolen
and misused by anybody, immediately.
 Credit Card : Credit Card can be used for all your
requirements, be it shopping, eating out, holidaying,
fuelling up your vehicle, railway ticket reservations - just
about any financial requirement, planned .
 Home loan : Home loans for individual to purchase or
construct houses. 
 Personal Loans : The procedure of personal loan is
simple, documentation is minimal and approval is quick.
CONTINUE…….

 Foreign Currency Cash : Foreign Currency Cash is a

convenient way of meeting personal expenses along your
journey, paying for taxis / internal travel, food expenses
etc.
 Foreign Currency Demand Drafts : Demand Drafts are
issued in seven currencies like United States Dollars
(USD), Great Britain Pounds (GBP), EURO, Japanese Yen
(JPY), Australian Dollars (AUD), Canadian dollars (CAD)
and New Zealand Dollars (NZD).
 Foreign Currency Cheque Deposits : We can directly
deposit our foreign currency cheques in to our saving or
current account.
 Remittances : HDFC Bank offers the remittance
facilities by which we can send and receive money to
anyone. They are categorized depending on location and
the urgency with which we want the money transferred.
CONTINUE…….

• Trade Service : HDFC Bank have people with

high level of expertise and experience in
trade services to provide services to suit
specific requirements and structure solutions
for business needs.
• HDFC Bank have 500 branches for trade
services.
• Mutual funds : Mutual funds are funds that
pool the money of several investors to invest
in equity or debt markets.
• Insurance :  HDFC Bank offers a world of
choice in insurance. Like – children future
plans, retirements plans, standard life, etc.
Technology – New is better !!!

Latest Technology Security

 Plans to deploy connections, with built-in
redundancy in the network
 Tested CDMA and GSM solutions—
specially for ATMs as they consume very
small bandwidths
 For corporate and retail banking the bank
uses Flexcube and Finware of i-flex
respectively .
 Security in banking, to a large
extent, is built into the software or
the application itself.
 The data that are being
transferred to the regional centres
or from internet banking request,
are encrypted

 For disaster recovery the data at the main

center is replicated in real-time on-line at
the Chennai site
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
 Roughly 28% of the equity is held by
Foreign Institutional Investors (FIIs) and
the bank has about 570,000
shareholders
GROWTH TRAJECTORY !!!
Competition !!! - The way ahead
Achievements
 HDFC Bank merged with TIMES BANK in 2000.
 HDFC Bank wins the Asian Banker Best Retail
Bank in India Award 2008 for outstanding
performance.
 HDFC Bank chosen as one of Asia Pacific’s best
50 companies by Forbes magazine.
 'Best Bank in the Private Sector 2008.'
 HDFC Bank ties up with Qatar National Bank.
 HDFC Bank merged with CENTURION BANK OF
PUNJAB in 2007.
 Milestones !!!!
 HDFC follows the model of a sound corporate
governance

 The bank was amongst the first four companies,

which subjected itself to a Corporate Governance
and Value Creation (GVC) rating by CRISIL

 A very sound and effective risk management

system in place to create a less risk assets
portfolio.

 Uses Neural Technologies for risk management

in its Credit Cards and other Retail Assets
portfolios
Future plans
 Launch 250 new branches.
 HDFC Bank plans to raise Rs 4,200
crore in capital.
 Relocate branches to un-banked rural
Punjab.
 HDFC Bank plans to set up NBFC.
Segmentation strategy
 Demographics variables
 Location
- Metros & divisional cities
 Occupation
- Business person
- Salaried class (both govt. & private)
 Age
- Senior citizens
- Minor
 psychographic variables
 Lifestyle
- People who believes in modern banking with higher set
of service i. e. internet banking (incontact, mobile refill,
travel currency card etc.)
Targeting strategy
 Target market
 Corporate banking market : this market
target the industries & fulfill their financial
needs.

 Capital market : this segment is targeted on

the long term needs of the individual as well as
of industries.

 Retail banking market : this segment is for

retail investors & provide them short term
financial credit for their personal, house hold
needs.
Positioning strategy
 HDFC Bank has positioned itself as a bank
which gives higher standard of services
through product innovation for the diverse
need of individual & corporate clients. So
they want to highlight following points in
their positioning segment :

-Customer centric

-Service oriented

-Product innovation
SWOT analysis
Strengths
• Support of various promoters
• High level of services
• Knowledge of Indian Market

Weaknesses
CONTINUE…….

Opportunities
- Growing Indian banking sector.
- People are becoming more service
oriented
- In the global market.
Threats
• From various competitors
-Foreign banks
-govt. banks
• Future market trends.
Any Questions?