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We Understand Your World

HDFC BANK

PRESENTED BY Tanuja Sharma

CONTENTS
LAYOUT BANKING BANKING IN INDIA MAJOR PLAYERS IN INDIA HDFC BANK PROFILE BOARD OF DIRECTORS CAPITAL STRUCTURE NETWORK ACHIEVEMENTS

CONTD..
BUSINESS PROFILE GROWTH TRAJECTORY PRODUCTS AND SERVICES SWOT ANALYSIS DIFFERENTIATORS COMPARED TO COMPETITION BUSINESS STRATEGY VIEW ON FUTURE SUCCESS/FAILURE

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.

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 It was amongst the first to receive an approval from RBI to set up a bank in the private sector. HDFC Bank was incorporated in August 1994 Among the first in new generation commercial banks Commenced operations as a Scheduled Commercial Bank in January 1995 Registered office in Mumbai, India IPO in India in 1995 Listed in NSE, BSE, NYSE(ADR)

PROFILE OF HDFC BANK


Type Founded Headquarters Branch Name Industry Products Public 1994 HDFC Bank Ltd., Mumbai, India Sanpada Banking, Insurance, Capital Markets and allied industries Loans, Credit Cards, Savings, Investment vehicles, Insurance etc. Rs.2,509.6 crores Rs. 4,634.3 crores www.hdfcbank.com

Net revenue Net income Website

BOARD OF DIRECTORS
Mr. Deepak Parekh , 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

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) Bank has about 570,000 shareholders

NETWORK
2150 branches 6520 ATMs in the country 1141 cities in India All branches are OLRT connected 16 branches in Middle east 6 in Africa Representative offices in Hong Kong, NewYork, London & Singapore

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 Pacifics 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.

STP STRATEGY

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, Phonebanking 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

HDFC bank caters to banking services such as corporate banking and retail banking.

BUSINESS PROFILE

CORPORATE BANKING
The Bank's target market is primarily large, bluechip manufacturing companies in the Indian corporate sector and to a small extent, emerging mid-sized corporate. For these corporate, the Bank provides banking services such as working capital finance, trade services, transactional services, cash management. Based on its superior product delivery & CO the Bank has made significant inroads into the banking consortia of a number of leading Indian corporate including multinationals, companies from the domestic business.

RETAIL BANKING
The objective of the Retail Bank is to provide a full range of financial products and banking services, giving the customer a one-stop window for all his banking requirements. The products are backed by world class service and delivered to the customers through various delivery channels including the branch network, as well as alternative delivery channels like ATMs, Phone Banking, Net Banking and Mobile Banking. HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA and issues the Maestro debit card as well. The Bank launched its credit card in association withVISA in November 2001.

GROWTH TRAJECTORY !!!

PRODUCTS AND SERVICES


Travellers Cheques credit card home loan personal loan Foreign Currency Cash Foreign Currency Demand Drafts Cheque Deposits Remittances Trade Services Mutual funds Insurance

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. 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. 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.

CONTINUE.

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.

SWOT ANALYSIS

STRENGHTS
Superior customer service vs. competitors Products have required accreditation High degree of customer satisfaction Right strategy for right products Great brand image Good place to work Dedicated workforce aiming at making a long-term career in the field.

WEAKNESSES
Customer service staff need more training.
The branches are not proactively selling third party products to the customers. Opening a new account or creating a new deposit brings weakness in technology system.

Due to fall in rates of interest , the margins on the banks wholesale assets reduce drastically.

OPPORTUNITIES
Could extend to overseas broadly. Could seek better customer deals. Fast- track career development opportunities on an industry wide basis. An applied research centre to create opportunities for developing techniques to provide added value services. Profit margins will be good.

THREATS
Future market trends
Very high competition prevailing in the industry

Declining trend in the aggregate deposits growth with the scheduled commercial banks.
Vulnerable to reactive attack by major competitors. Lack of infrastructure in rural areas could constraint investment.

BUSINESS STRATEGY
Increase market share in Indias expanding banking and financial services industry by following a disciplined growth strategy focusing on quality and not on quantity. Delivering high quality customer service.

Leverage our technology platform and open scaleable system to deliver more products to more customers. To control operating costs.

CONTD..
Maintain 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 products and services that reduce our cost of funds. Focus on high earnings growth with low volatility.

DIFFERENTIATORS COMPARED TO COMPETITION


World Class Indian Bank
Benchmarking against international standards.

Best practices in terms of product offerings, technology, service levels, risk management and audit & compliance.
Sound customer franchises across distinct businesses.

VIEWS ON FUTURE SUCCESS


Launch new branches.
HDFC Bank and Vodafone India launch product for financial inclusion(HDFC Bank MobilleBank Account with vodafone mpaisa)Rajasthan Relocate branches to un-banked rural Punjab.

HDFC Bank Launches Solitaire Range Of Premium Womens Cards


It has already crossed its bull market highs, the current uptrend highs equivalent to 5400, it is already trading at new highs for

POINTS OF INTEREST

QUESTIONS??

THANK YOU