Priyanka B30

8/9/2019 Priyanka B30

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Acknowledgement

Success is to be measured not somuch by the position one hasreached in life but by the obstaclesthat he has overcome while trying tosucceed

We express our sincere thanksto our respected lecturer as well

as our term paper guide MR.AmitKr.Lal for his guidance andtremendous encouragementbestowed throughout ourEndeavour.

Priyanka


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EXCUTIVE SUMMARY

WE UNDERSTAND YOUR WORLD

The Housing Development Finance Corporation Limited (HDFC) was amongst the first

to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a

bank in the private sector, as part of the RBI's liberalization of the Indian Banking

Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC

Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced

operations as a Scheduled Commercial Bank in January 1995. HDFC is India's premier housing finance company and enjoys an impeccable track record in India as well as in

international markets. Since its inception in 1977, the Corporation has maintained

a consistent and healthy growth in its operations to remain the market leader in

mortgages. Its outstanding loan portfolio covers well over a million dwelling units.

HDFC has developed significant expertise in retail mortgage loans to different market

segments and also has a large corporate client base for its housing related credit

facilities. With its experience in the financial markets, a strong market reputation,

large shareholder base and unique consumer franchise, HDFC was ideally positioned to

promote a bank in the Indian environment.

HDFC Bank began operations in 1995 with a simple mission : to be a World Class

Indian Bank. We realized that only a single minded focus on product quality and


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service excellence would help us get there. Today, we are proud to say that we are

well on our way towards that goal.

HDFC Ltd has the objective to enhance residential housing stock and promote home

ownership. Their offerings range from hassle-free home loans and deposit products, to

property related services and a training facility. They also offer specialized financial

services to the customer base through partnerships with some of the best financialinstitutions worldwide.

HDFC Bank is a young and dynamic bank, with a youthful and enthusiastic team

determined to accomplish the vision of becoming a world-class Indian bank.

Our business philosophy is based on four core values - Customer Focus, Operational

Excellence, Product Leadership and People. We believe that the ultimate identity and

success of our bank will reside in the exceptional quality of our people and their

extraordinary efforts. For this reason, we are committed to hiring, developing, motivating

and retaining the best people in the industry.

HDFC Bank specializes in the provision of banking and other financial services to

corporate and institutional clients. The companys services include commercial,

transactional and electronic banking products. It also provides treasury services, retail

banking and capital markets infrastructure. The company primarily operates in India.

HDFC Bank is headquartered in Mumbai, India and employs about 14,900 people. The

company recorded revenues of INR124,928 million (approximately $3,131.9 million)

during the fiscal year ended March 2008, an increase of 51.9% over 2007. The net profit


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was INR15901.8 million (approximately $398.7 million) in fiscal year 2008, an increase

of 39.3% over 2007.

Mission and Business Strategy

Our mission is to be "a World Class Indian Bank ", benchmarking ourselves against

international standards and best practices in terms of product offerings, technology,service levels, risk management and audit & compliance. The objective is to build sound

customer franchises across distinct businesses so as to be a preferred provider of banking

services for target retail and wholesale customer segments, and to achieve a healthy

growth in profitability, consistent with the Bank's risk appetite. We are committed to do

this while ensuring the highest levels of ethical standards, professional integrity,

corporate governance and regulatory compliance.

Organizational Goals

HDFCs main goals are to :-

The primary objective of HDFC is to enhance residential housing stock and to promote

home ownership.

To acquire by purchase, lease, exchange, hire or otherwise lands & property or any

interest in the same in India.

To advance money to any person/ persons, company or corporation, society or

association either at interest without, and or with or without any security and in particular

to advance money to shareholders of the company or to oth4r persons to enable the

person to erect, or purchase, or enlarge, or repair any house or building or any part or


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portions thereof or to purchase any freehold or leasehold or any lands or estate or

property in India upon the terms and conditions as laid by the company.

To develop & turn to account any land acquired by the company or in which the

company is interested, and in particular by laying out and preparing the same for building

purposes, constructing, altering pulling down, decorating, maintaining; furnishing, fitting

up and improving buildings, and by planting, paving draining, farming, cultivating,

letting on building lease or building agreement, and by advancing money and entering

into contracts and agreements of all kinds with builders, tenants and others.

Subject to the provisions of the Banking Regulation Act 1949, to receive moneys on

deposits, loans or otherwise with or without interest and to secure the same in such

manner and on such terms and conditions as the company may think fit and proper and to

guarantee the debts, obligations and contracts of any person, firm, company, or

corporation whatsoever.

To negotiate loans of every description.

To finance or assist in financing the sale of house, buildings, flats, either furnished or otherwise, by way of hire purchase or deferred payment or similar transactions and to

institute, enter into, carry on, subsidize finance or assist in subsidizing or financing he

sale of these houses, buildings, flats, furnished or otherwise, upon any term whatsoever.

Besides these the company has certain objectives incidental or ancillary to the attainment

of the main objective. These are :

To aid any government, state, or any municipal corporation, or company or association or individual with capital, credit, means or resources for the prosecution of any work,

undertakings, project or enterprises which are conducive to all or any of the object of the

company.


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To adopt such means of making known to the business of the company as may seen

expedient, and in particular by the advertisement in the press, by circulars, by purchase

and exhibition of work, of art of interest, by publication of books and periodicals, by

granting prices, rewards and donations.

To provide for the welfare of the employees or ex employees of the company and the

wives, widows and the children or the dependents of such persons in such manner as the

company deems fit and proper.

To effect and maintain insurance against loss of or inuuryt to any property of or any

persons employed by the company or against any other loss to the company.

To undertake and carry on the business in India or abroad of Merchant Banking including

consultancy services of all kinds and description, investment counseling, portfolio

management, providing of financial and investment assistance, syndication of loans,

counseling, and tie-up for project and working capital finance, syndication of financial

arrangements whether in domestic or international markets, handling of mergers and

amalgamations, assisting in the setting up of joint ventures, foreign currency lending, tax

consultancy, underwriting of any securities, whether singly or in consortium and without

prejudice to the generality of the foregoing to act as advisors and consultants, managersto the issue of shares, debentures, stocks, bonds and securities.

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 milliondwelling 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


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reputation, large shareholder base and unique consumer franchise, HDFC was ideally

positioned to promote a bank in the Indian environment.

Infrastructure and Operations

Profile

HDFC Bank was incorporated in August 1994, and, currently has an nationwide network

of 1412 Branches and 3295 ATM's in

528 Indian towns and cities.

HDFC Bank in India operates on the following basic segments:

Personal Banking Encompasses all financial dealings between a commercial bank and

an individual.

Wholesale Banking Deals with all sorts of financial dealings with Corporates, medium

and small Enterprises,Financial Institutions and Trusts as well as the Government Sector.

March 2006 March 2007 March 2008 March 2009

Citied 228 316 327 528

Branches 535 684 761 1412

ATMs 1323 1605 1977 3295


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NRI Banking Consists of personal banking relations with the Non Resident Indians

(NRIs).

HDFC Bank has been recognized, rated and awarded by a number of organizations (on

successfully operating in India for over a decade).

Corporate Governance Policy

HDFC Bank recognizes the importance of good corporate governance, which is generally

accepted as a key factor in attaining fairness for all stakeholders and achievingorganizational efficiency. This Corporate Governance Policy, therefore, is established to

provide a direction and framework for managing and monitoring the bank in accordance

with the principles of good corporate governance. Code of Corporate Governance

1. Corporate Governance Rating

Composition of the Board

Profiles of Directors

Board Committees

Ownership Rights

Promoters Rights( HDFC LTD.)

Key Shareholders Rights

Listing

Registrars and transfer agents

Grievance Redressal Dividend Policy

Memorandum of Association

Articles of Association

Board Meetings


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Quarterly Updates

Fair Practice Code for Lending

Code of Ethics / Conduct

ORGANIZATION ANALYSIS

PRODUCT ANALYSIS:

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.

SWOT HDFC


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SWOT Analysis is a strategic planning method used to evaluate the Strengths,

Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It

involves specifying the objective of the business venture or project and identifying the

internal and external factors that are favorable and unfavorable to achieving that

objective. The technique is credited to Albert Humphrey, who led a convention at

Stanford University in the 1960s and 1970s using data from Fortune 500 companies.

STRENGTHS

1. HDFC is the strongest and most venerable play on Indian mortgages over the long

term. The management of the bank is termed to be one of the best in the country.

2. HDFC has differentiated itself from its peers with its diversified network and

revamped distribution strategy

3. HDFC has been highly proactive in passing on the cost and benefit to customers.

4. Besides the core business, HDFCs insurance, AMC, banking, BPO, and real estate

private equity businesses are also growing at a rapid pace and the estimated value of itsinvestments/subsidiaries explains ~30% of HDFCs market capitalization.

5. High degree of customer satisfaction.

6. Lower response time with efficient and effective service.

7. Dedicated workforce aiming at making a long-term career in the field.

8. Products have required accreditations.

9. Superior customer service vs. competitors

10. Large share of low-cost deposits, higher net interest margin

11. Better quality of assets, NPA of 0.4 per cent

12. Free float available, FIIs can buy its stock

13. Higher profitability


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WEAKNESSES

1. High dependence on individual loans.2. Major stake held by American financial groups which are under stress due to economic

slowdown.

3 .Customer service staff needs training.

4. Processes and systems, etc need to be better managed

5. Management cover insufficient.

6. Sectoral growth is constrained by low unemployment levels and competition for staff

7. Marginal international presence

8. No next line of leadership

9. Not very aggressive in M&A space, growing only organically

10. Possible takeover target

OPPURTUNITIES

1. Fast growing insurance business in the country.

2. Untapped rural markets.

3.Could extend to overseas broadly

4.Fast-track career development opportunities on an industry-wide basis.

5.An applied research centre to create opportunities for developing techniques to provide

added-value services.

6. Unique partnership to create job opportunities for IFBIs PGDBO students7. HDFC bank automates business processes with Staff ware; HDFC Bank anticipates

major cost savings whilst maintaining high levels of customer service thanks to new

enterprise software agreement.

8. HDFC Bank plans to set up a non-banking finance company (NBFC) to undertake

fund-based activities .


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9.In recent times, India has witnessed entry of many international banks like CITI

Bank, YES Bank etc which posses an external entrant threat to HDFC Bank as this

Banks are known for their art of working and maintain high standards of customer

service.

10. After showing a significant growth overall, India is able to attract

many international financial & banking institutes, which are known for their state of

art working and keeping low operation costs.

THREATS

1. Loss of market share to commercial banks and HFCs

2. Higher than expected increase in funding cost

3. Risk of fraud and NPA accretion due to increase in interest rates and fall in property

prices is inherent to the mortgage business

4. Lack of infrastructure in rural areas could constrain investment.

5. High volume/low cost market is intensely competitive.

6. Very high competition prevailing in the industry

7. Extension overseas holds a lot of risk!

8. Threat from credit card collections dept.

9. Varying and In-Convenient ECS dates.

10. Unlike Government Banks, an account needs a minimum balance of Rs.10,000


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Pestel model of banking

POLITICAL

GOVERNMENTPOLICY & BUDGECT

BUDJECTMEASURES

MONATORY POLICY FDI LIMIT

SOCIOCULTURAL

CHANGES INLIFE STYLE

LITERACY

RATE DEMOGRAPHICOF LARGEPOPULATION

SHIFTTOWARDS THENUCLEAR

LEGAL

RESERVE BANK OFINDIA ACT

BANKINGREGULATION ACT

TECHNICAL

TECHNOLOGY INBANKS

CORE BANKINGSOLUTIONS(CBS)

ATM INTERNATE I.T SERVES AND

MOBILE BANKING

Organization


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POLITICAL FACTORS

Government and RBI policies affect the banking sector. Sometimes looking intothe political advantage of a particular party, the Government declares some measures to

their benefits like waiver of short-term agricultural loans, to attract the farmers votes. By

doing so the profits of the bank get affected. Various banks in the cooperative sector are

open and run by the politicians. They exploit these banks for their benefits. Sometimes

the government appoints various chairmen of the banks.

Various policies are framed by the RBI looking at the present situation of the

country for better control over the banks.

FOCUS ON REGULATIONS OF GOVERNMENT

Indian Banking is least affected as compare to other developed economy which is

attributed to Reserve Bank of India for its robust policy framework, stricter prudential

regulations with respect to capital and liquidity. This gives India an advantage in terms of

credibility over other countries.

Government affects the performance of banking sector most by legislature and

framing policy .government through its budget affects the banking activities

securitization act has given more power to banking sector against defaulting borrowers.

MONETARY POLICY


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Monetary Policy 2009-2010

Bank Rate: The Bank Rate has been retained unchanged at 6.0%.

Repo Rate It has been reduced under the Liquidity Adjustment Facility (LAF) by 25

basis points from 5.0% to 4.75% with immediate effect.

Reverse Repo Rate : It has been reduced under LAF by 25 basis points from 3.5% to

3.25% with immediate effect. RBI has retained the option to conduct overnight or longer

term repo/reverse repo under the LAF depending on market conditions and other relevant

factors.

Cash Reserve Ratio: CRR has been retained unchanged at 5.0% of NDTL.

FDI LIMIT

The move to increase Foreign Direct Investment FDI limits to 49 percent from 20

percent during the first quarter of this fiscal came as a welcome announcement to foreign

players wanting to get a foot hold in the Indian Markets by investing in willing Indian

partners who are starved of net worth to meet CAR norms. Ceiling for FII investment in

companies was also increased from 24.0 percent to 49.0 percent and have been included

within the ambit of FDI investment

BUDGET MEASURES

BUDGET PROVISIONS

Increase Farm Credit : The FM has further increase the farm credit target for

2009-10 at Rs 325000 crore compared to Rs 287000 crore targeted in 2008-09.
http://4.bp.blogspot.com/_5i6xumi12nY/SucoRuoE_fI/AAAAAAAAADQ/ErItBQqG8cU/s1600-h/pol.bmp


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Subvention of 1% to be paid as incentive to farmers : The Budget continued

the Interest subvention scheme for short-term crop loans up to Rs 300000 per farmer at

the interest rate of 7% per annum. Also additional subvention of 1% to be paid from this

year, as incentive to those farmers who repay short-term crop loans on schedule. Also

additional allocation of Rs 411 crore over Interim Budget 2009-10 was made for the

same.

Debt Waiver for Farmers : The Union Budget 2009-10 extended the debt waiver

scheme by six more months for farmers owing more than 2 hectare of land.

The Union Budget 2008-09 allowed these farmers 25% rebate on loan if they

repay 75% of their overdue within stipulated period of 30th June 2009. Currently this

facility has been extended from 30th June, 2009 to 31st December, 2009.

Setting up of separate task force for those not covered under the debt waiver

scheme : The government also announced that it will set up a task force to examine the

issue of debt taken by a large number of farmers in some regions of Maharashtra from

private money lenders who were not covered by the loan waiver scheme announced last

year.

OTHER PROVISIONS

The threshold for non-promoter public shareholding for all listed companies to be

raised in a phased manner. To allow scheduled commercial banks setting up off-site ATMs without prior

approval subject to reporting. To provide banking facilities in under-banked/un-banked areas in the next three

years. A sub-committee of State level Bankers Committee (SLBC) would identify

and formulate an action plan for the same. The Ministry has also granted Rs 100 crore of grants in aid to ensure provision of

at least one Centre/Point of Sales (POS) for banking services in each of the un-

banked blocks.

BUDGET IMPACT


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The Union Budget 2008-09 has focused on farm credit. The agriculture sector has

recorded a growth of about 4% per annum with substantial increase in plan allocations

and capital formation in the sector. The one-time bank loan waiver of nearly Rs 71000

crore (Rs 710 billion) to cover an estimated 40 million farmers was one of the major

highlights of the last Budget. This Union Budget has provided further six months

extension of 25% rebate on loan for farmers owing more than 2 hectare of land. With

Government bearing this burden, banks would not be affected much. It will only help

banks to clear their most stubborn NPA accounts on banks book.

Moreover the emphasize on hiking promoter shareholding in Public sector banks,

expanding network with ATM's, opening of banking centre in un-banked blocks are

some of the positive moves for the sector.

On the flipside, the spike in government borrowings is set to adversely affect the

treasury income of banks in general and public sector banks in particular, through rise in

yields on government securities.

OUTLOOK

The Union Budget 2009-10 has not granted much of new grants/stimulus to the

banking sector as a whole. However it has increased the Government borrowing to Rs

451093 crore (Rs 4510.93 billion) compared to Rs 361782 crore

(Rs 3617.82 billion) targeted in the Interim Budget 2009-10.

This is likely to push the Bond yields high moving forward. Despite ample

liquidity in the system, the 10 year benchmark yield has zoomed above 7% levels owing

to rise in borrowing target. Hardening of yields is likely to affect treasury profits of banks

in general and Public sector banks in particular.

BUDGET PROPOSALS1. IIFCL to refinance 60% of loans given by commercial banks for PPP-based projects

in critical sectors. IIFCL and banks together will be able to support infrastructure projects

involving total investment of Rs 1,000 bn.


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2. Target for agriculture credit flow set at Rs.3250 bn for the year 2009-10. Interest

subvention scheme at the interest rate of 7% will be continued. Additional subvention of

1% for the farmers who repay their debt on time.

3. Farm debt waiver scheme extended to 31st December 2009 from 30th June 2009.

4. Interest subvention scheme to exporters extended to 31st March 2010.

5. Special fund of Rs.40 bn out of Rural Infrastructure Development Fund (RIDF) to

provide refinance to banks and State Finance Corporation for incremental lending to

Micro and Small

Enterprises (MSEs).

6. Rs.1 bn to ensure provision of at least one centre/Point of Sales (POS) for bankingservices in each of the unbanked blocks.

7. Interest subsidy to poor households for loans up to Rs.1,00,000 from banks.

8. Rs.20 bn earmarked for Rural Housing Fund in National Housing Bank (NHB)

9. Recapitalization of public sector banks and insurance companies.

10. Exemption of income of New Pension System (NPS) trust from income tax and

dividend paid to NPS trust from dividend distribution tax. Sale and purchase of equityshares and derivatives by NPS trust will be exempt from the securities transaction tax.

BUDGET IMPACT: INDUSTRY

1. Long-term refinancing from IIFCL for infrastructure projects will ensure better asset-

liability match for banks.

2. Debt waiver and interest subvention schemes will not have much impact on banks.

3. Recapitalization will ensure adequate capital for the growth of the public sector banks

and insurance companies.

4. Rural Housing fund will boost the resource base of NHB for their refinance operation

in rural housing sector.


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5. Tax break for NPS trust will have positive impact on the same.

ECONOMIC FACTORS

Banking is as old as authentic history and the modern commercial banking are

traceable to ancient times. In India, banking has existed in one form or the other from

time to time. The present era in banking may be taken to have commenced with

establishment of bank of Bengal in 1809 under the government charter and with

government participation in share capital. Allahabad bank was started in the year 1865

and Punjab national bank in 1895, and thus, others followed.

Every year RBI declares its 6 monthly policy and accordingly the various

measures and rates are implemented which has an impact on the banking sector. Also the

Union budget affects the banking sector to boost the economy by giving certain

concessions or facilities. If in the Budget savings are encouraged, then more deposits will

be attracted towards the banks and in turn they can lend more money to the agricultural

sector and industrial sector, therefore, booming the economy. If the FDI limits are

relaxed, then more FDI are brought in India through banking channels

GROWING ECONOMY / GDP

Indian economy has registered a growth of more that 9 per cent for last three year

and is expected to maintain robust growth rate as compare to other developed and

developing countries. Banking Industry is directly related to the growth of the economy.

The contributions of various sectors in the Indian GDP for 2007-2008 are as

follows:Agriculture: 17%

Industry: 29%

ServiceSector: 54%

It is great news that today the service sector is contributing more than half of the Indian


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GDP. It takes India one step closer to the developed economies of the world. Earlier it

was agriculture which mainly contributed to the Indian GDP.

The Indian government is still looking up to improve the GDP of the country and so

several steps have been taken to boost the economy. Policies of FDI, SEZs and NRI

investment have been framed to give a push to the economy and hence the GDP.

MONSOON

The cumulative seasonal rainfall (1st June -30th September 2009) for the country

as a whole is 23 per cent below the Long Period Average (LPA). The year 2009 is the

most deficient year after 1972 .


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LOW INTEREST RATES

Reserve Bank of India controls the Interest rate, which is based on several

monetary policies. Recently RBI has reduced the interest rate which stimulates the

growth rate of banking industry. As on September 11, 2009 Bank Rate was 6.00 per cent,

the same as on the corresponding date of last year. Call money rates (borrowing &

lending) were in the range of 1.50/3.47 per cent as compared with 5.25/11.00 per cent on

the corresponding date of last year.

INFLATION RATES


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Inflation represents a rise in general level of prices of goods and services over a

period of time. It leads to an erosion in the purchasing power of money. Resultantly, each

unit of currency buys fewer goods and services

Different fiscal and monetary policies have curbed the Inflation rate from the high of

12.63 per cent to 3.92 per cent.

To fight against the slowdown of the Economy, Government of India & Reserve

Bank of India took many fiscal as well as monetary actions. Clubbed with fiscal &

monetary actions, decreasing commodity prices, decreasing crude prices and lowering

interest rate.

we expect that Indian Economy could again register a robust growth rate in the

year 2009-10. Inflation stands at 3.92 per cent on 7th February 2009 against a high of

12.63 per cent on 9 th August 2008.

SAVINGS AND ACCOUNTS

As stated earlier, India continues to remain one of the high savings economies

among the emerging market economies. Gross Domestic Savings (GDS) of the Indian

economy constitutes savings of public, private corporate and household sectors. In the

recent period the high growth performance of the Indian economy is driven by rise in

savings


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AGRICULTURE CREDIT

Agriculture has been the mainstay of our economy with 60% of our population

deriving their sustenance from it. In the recent past, the sector has recorded a growth of

about 4% per annum with substantial increase in plan allocations and capital formation in

the sector. Agriculture credit flow was Rs 2,87,000 crore in 2008-09. The target for

agriculture credit flow for the year 2009-10 is being set at Rs.3,25,000 crore. To achieve

this, I propose to continue the interest subvention scheme for short term crop loans to

farmers for loans upto Rs.3 lakh per farmer at the interest rate of 7% per annum. For this

year, the government shall pay an additional subvention of 1% as an incentive to those

farmers who repay their short term crop loans on schedule. Thus, the interest rate for

these farmers will come down to 6% per annum. For this, I am making an additionalBudget provision of Rs 411 crore over Interim BE.

DEBT RELIEF FOR FARMERS


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The one-time bank loan waiver of nearly Rs 71,000 crore to cover an estimated 40

million farmers was one of the major highlights of the last Budget. Under the

Agricultural Debt Waiver and Debt Relief Scheme (2008), farmers having more than two

hectares of land were given time upto 30th June, 2009 to pay 75% of their overdues. Due

to the late arrival of monsoon, I propose to extend this period by six months upto 31st

December, 2009 .

SOCIO CULTUREAL FACTORS

Socio culture factors also affect the business. They show in which people behave

in country. Socio-cultural factors like taboos, customs, traditions, tastes, preferences,

buying and consumption habit of people, their language, beliefs and values affect the

business. Banking industry is also operates under this social environment and it is also

affect by this factor.

These factor are changing continuously peoples life style, their behavior,

consumption pattern etc. is changing and also creating opportunities and threat for

banking industry. There are some socio-culture factors that affect banking in India have

been analyzed below.

TRADITIONAL MAHAJAN PRATHA

Before the birth of the banks, people of India were used to borrow money local

moneylenders, shahukars, shroffs. They were used to charge higher interest and also


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mortgage land and house. Farmers were exploited by these shahukars. But farmers need

money. So, they did not have any choice other than going to shahukar and borrowing

money from them in spite of exploitation by these people. But after emergence of banks

attitude of people was changed. Traditional mahajan pratha still exist in India specially in

rural areas. This affects the banking sector. Rural people afraid to go to bank to borrow

money instead they prefer to borrow from shahukar whith whom they have relationships

from the time of their fore fathers. Banking infrastructure is also week in some interior

areas of India. So, this is reason it still exist.

SHIFT TOWARDS NUCLEAR FAMILY

Attitude of people of India is changing. Now, younger generation wants to remain

separate from their parents after they get married. Joint families are breaking up. There

are many reasons behind that. But banking sector is positively affected by this trend. A

family need home consumer durables like freeze, washing machine, television, bike, car,

etc.. so, they demand for these products and borrow from banks. Recently there is boost

in housing finance and vehicle loans. As they do not have money they go for

installments. So, banks satisfy nuclear families wants.

CHANGE IN LIFE STYLE

Life style of India is changing rapidly. They are demanding high class products.

They have become more advanced. People want everything car, mobile, etc.. what their

fore father had dreamed for. Now teenagers also have mobile and vehicle. Even middle

class people also want to have well furnished home, television, mobile, vehicle and this

has opened opportunities for banking secter to tap this change. Every thing is available so

it has become easy to purchase anything if you do not have lump sum.


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POPULATION

Increase in population is one of he important factor, which affect the private

sector banks. Banks would open their branches after looking into the population

demographics of the area. Percentage of deposit in any branches of banks depends uponthe population demographic of that area. The population of India is about 102.90 is

expected to reach about 119.70 cores in 2011. About 70% of population is below 35years

of age. They are in the prime earning stage and this increase the earning of the banks.

Total Deposits mobilized by the Private Sector Banks increased from Rs, 2,52,335 crore

as on 31 st March 2004 to Rs. 3,12,645 crore as on 31 st March 2005. Deposits showed a

subdued growth during 2004-05.Income distributions also affects the operations and

overall business of private sector banks.

LITERACY RATE

Literacy rate in India is very low compared to developed countries. Illiterate

people hesitate to transact with banks. So, this impacts negatively on banks. But there is

positive side of this as well i.e. illiterate people trust more on banks to deposit their

money, they do not have market information. Opportunities in stocks or mutual funds.

So, they look bank as their sole and safe alternative. Literacy rate of India is around 65%

LITERACY RATE IN INDIA

year persons male female

1951 18.3 27.2 8.91961 28.3 40.4 15.31971 34.5 46.0 22.01981 41.4 53.4 28.51991 52.2 64.1 39.32001 65.4 75.8 52.1


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TECHNOLOGICAL FACTORS

TECHNOLOGY IN BANKS

Technology plays a very important role in banks internal control mechanisms aswell as services offered by them. It has in fact given new dimensions to the banks as well

as services that they cater to and the banks are enthusiastically adopting new

technological innovations for devising new products and services.

ATM

The latest developments in terms of technology in computer and

telecommunication have encouraged the bankers to change the concept of branch

banking to anywhere banking. The use of ATM and Internet banking has allowed

anytime, anywhere banking facilities.

Automatic voice recorders now answer simple queries, currency accounting

machines makes the job easier and self-service counters are now encouraged.


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Credit card facility has encouraged an era of cashless society. Today MasterCard

and Visa card are the two most popular cards used world over. The banks have now

started issuing smartcards or debit cards to be used for making payments. These are also

called as electronic purse. Some of the banks have also started home banking through

telecommunication facilities and computer technology by using terminals installed at

customers home and they can make the balance inquiry, get the statement of accounts,

give instructions for fund transfers, etc. Through ECS we can receive the dividends and

interest directly to our account avoiding the delay or chance of loosing the post.

IT SERVICES & MOBILE BANKING

Today banks are also using SMS and Internet as major tool of promotions and

giving great utility to its customers. For example SMS functions through simple textmessages sent from your mobile. The messages are then recognized by the bank to

provide you with the required information.

All these technological changes have forced the bankers to adopt customer-based

approach instead of product-based approach

Technology advancement has changed the face of traditional banking systems.

Technology advancement has offer 24X7 banking even giving faster and secured service.

CORE BANKING SOLUTIONS


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It is the buzzword today and every bank is trying to adopt it is the centralize

banking platform through which a bank can control its entire operation the adoption of

core banking solution will help bank to roll out new product and services.

A step ahead

In the coming years HDFC Bank plans to deploy connections, with built-in redundancy

in the network. For example, Madras could be connected to Bangalore and Kolkata, with

all three of them being connected to Chandivili. Therefore, if the Kolkata-Chandivili link

fails, then Kolkata will use the Madras link to connect to the Chandivili data center.

The bank is also considering alternate connectivity solutions as VSATs are relativelymore expensive, and in remote areas it is difficult to set up the required infrastructure.

The bank has tested CDMA and GSM solutionsspecially for ATMs as they consume

very small bandwidths.

Servers

The bank started with applications on SCO-Unix boxes from Compaq almost eight years

back. The software then used was MicroBanker from i-flex Solutions (then called

CITIL). The set-up supported about 10 branches initially.

"With an expansion in the number of branches the bank felt the need to consider

Unix/RISC boxes rather than an Intel/SCO Unix platform, and selected the Sun platform.

Since then the bank has been running applications on a Sun platform," said C.N. Ram.

With the growth in transaction volumes, number of branches and the number of users the

hardware platform has also been upgraded. Till recent times the database was operating

on a direct attached storage (DAS), and from 1st April 2003 the bank switched to storage

attached network (SAN).


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The bank's earliest server was a Sun Ultra 170; over time it moved to Sun Ultra 3500,

4500, and then Sun E10 K. Now the applications run on Sun's Star Fire 15K Server.

Banking applications

The bank uses separate software for corporate and retail banking as there was no single

package that met both their business requirements.

On the corporate side HDFC Bank started with MicroBanker and then moved to

Flexcube in 2002. They use Flexcube UBS, which operates on a Compaq Alpha box-

GS160. This database was also on DAS and was moved to SAN over last year (December 2002). The bank uses SAN solutions from Hitachi Data Systems. On the

retail side the bank uses Finware from i-flex solutions.

The bank did not face any serious migration issues as they use upgraded products or new

products usually from the same vendors. The vendors have programs that enable the

migration or upgrades.

"When HDFC Bank had acquired Times Bank in 2000 all the Times Bank customers

were shifted from their package (called Kapiti) to HDFC Bank's Finware and

MicroBanker. We had the vendors develop the software required to migrate the data from

Kapiti to Finware so that the task for the operating departments was greatly reduced and

the conversion was done in a short space of three months with minimum disruption to

customer service," said C.N. Ram.

Storage

The bank currently deploys SAN but feels they will need to consider NAS sometime in

the future. According to C. N. Ram the bank's storage requirement is growing at a rate of

four to five percent every month. With an increase in data volume, the capacity of the

hardware also needs to be updated. This calls for huge investments as all areas like


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backup, disaster recovery and others need to be addressed. The bank has to store data for

seven years as per the RBI guidelines, and as it is not necessary to store the data on-line

the bank uses tapes for off-line storage. The bank anticipates storage costs to come

down, and bulk purchases would be economical.

Disaster Recovery setup

C.N. Ram says, "Our approach is that we need to protect our data first as the basis for a

business continuity plan."

The bank has a disaster recovery (DR) site at Chennai. The data at the main center isreplicated in real-time on-line at the Chennai site. The data is stored on the servers at the

DR site and the database is constantly replenished.

If some disaster was to occur, data (up to the last second) will be replicated, and be

available. This gives both, the bank and the customer a feeling of security.

Security at HDFC Bank

Pre-Internet banking

Security concerns during the pre-Internet period had more to do with the internal

activities of a business. Right from the early days technology solutionslike banking

applications for mainframes, AS400 or Unixhad lot of security built-in.

Transactions that are directed from the branch to the main server are encrypted; there are

individual passwords, and numerous functions have two levels of authorization. Thus

security in banking, to a large extent, is built into the software or the application itself.

Internet banking


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The moment a business opens up through a medium like Internet, external security

becomes of prime importance. One has to start considering protection tools like firewalls,

IDS, and others. According to C.N. Ram, it is not enough to take care of security from

the hardware or software perspective, one needs to have security policies in place, which

will tell you how to review the logs.

Ram informs that HDFC Bank has a mechanism in place where a third-party is hired to

manage their entire security. This third-party is constantly onsite looking at logs, making

the required changes, as there are patches and upgrades being constantly released, and it

is imperative to incorporate all of these.

"You are protecting the infrastructure, but you also have to keep a vigil on the logs to see

who is trying to attack you or hack into your system," says Ram.The bank also has safety measures in terms of who has access, or who is authorized to

access certain kinds of data.

"Much of the security deals with the classification of the information you have. Thus

people who are functionally responsible for a particular area are also responsible for the

data they have. For example, a corporate banking customer will not have access to retail

banking data, and vice-versa. These are generally built-in the banking packages systems,"said C.N. Ram. Security is directly related to the business. The banking systems over the

years have been built with lots of security concern based

on the kind of business they do.

He further added that security is not limited to hardware and soft-warepremise security

also plays an equally important role. Physical access is combined with data access. One

has to have swipe cards to access the area where the data is. Thus there is lot of emphasis

on access control mechanisms, which is in fact physical security.

Future of banking and technology


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According to C.N. Ram, the future is integration as people will have less time for

banking. People will want to process more transactions on the Internet. There will be

more activity in terms of applications and services on the mobile. Geography will not be

an inhibitor any more as everything is executable on the Net.

"Integration is the next real big thing. As a customer you will want a one-stop shop that

will take care of all your needs. For instance people will want to buy their mutual funds,

redeem their mutual fund, buy insurance policies, renew policies, buy cinema tickets,

railway tickets, and numerous similar transactions through the bank. The ATM will still

serve as a cash dispensing medium, but the Internet and mobile will be very active," says

C.N. Ram.

Cost of infrastructure is coming down considerably. Service providers are providing

alternative routes to customers and prices are coming down, as there is healthy

competition in the market. Bulk purchases will result in affordable prices.

LEGAL

HDFC Bank is the most preferred employer in Banking industry in India.Manager Legal-HDFC BANK

Responsibilities:

To handle end to end legal process of general or designated portfolios of the region.

Initiating appropriate legal proceedings in consultation with Collections, representing

bank before Courts / Forums / Police Stations / arbitrators / statutory bodies, monitoring

and reviewing legal managers of the State, maintaining MIS, liasing with lawyers,

execution of process under SARFAESI etc.

KRA Metric

(1) Initiating appropriate legal proceedings as per Collections requirement and helping

Collections in meeting numbers and deadlines. Within the TAT prescribed for each

process.


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(2)Effective vendor management including clearance of bills without delay. Within 3

days of receipt of bills, bills to be forwarded to respective departments.

(3)Overseeing and reviewing legal managers of the area by conducting periodical

reviews and ensuring that process adopted is in line with policy and requirements. Not

quantifiable

(4) Maintaining MIS of the area and providing it to higher ups within TAT. Not

quantifiable.

(5)Handling the claims raised against the bank effectively before all forums/ statutory

bodies and ensuring that no adverse orders are passed against the bank.

Requirements:

Candidate must possess at least a Bachelor of Law in Law or equivalent. Required skill(s): recovery oriented litigation, SARFAESI, arbitration.

At least 2 year(s) of working experience in the related field is required for this

position.

Applicants should be Indian citizens or hold relevant residence status.

Preferably Senior Executives specializing in Banking/Financial Services or

equivalent. Job role in Others or equivalent.

2 Full-Time positions available.

ICICI Bank sends legal notice to HDFC Bank official

MUMBAI: Indias second-largest lender, ICICI Bank, has shot off a legal notice to a

senior official of HDFC Bank, for airing views on ICICIin a business magazine.

Mandeep Maitra, the officer in question, who is the head of human resources at HDFC

Bank, told the magazine that she was careful in hiring people from ICICI Bank simply

because she did not want the ICICI culture to seep into the bank she works for.


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ENVIRONMENT

HDFC Bank Joins The Anti-Plastic Drive

One of India's leading banks- HDFC Bank, is partnering with the city's municipal

authorities to educate people about the danger posed by plastic bags to the environment,

and to offer recycled paper bags instead.

The bank reinforced the Kolkata Municipal Corporation (KMC) initiated anti-plastic

awareness drive by distributing recycled and eco-friendly paper bags to retailers and

customers across nine markets in the city.

Kolkata mayor Bikas Ranjan Bhattacharya inaugurated the KMC-HDFC Bank anti-

plastic awareness initiative at Gariahat Market in south Kolkata handing over HDFC

Bank paper bags to a few shoppers and retailers.

The initiative christened "Be Independent of Plastic on Independence Day" is undertaken

by the bank to encourage people to proactively get rid of plastic bags and use eco-

friendly recycled paper bags.

Plastic bags clog gutters and storm water drains, causing water and sewage to overflow

and become a breeding ground for disease-causing germs, bacteria and insects. Serious

flooding in cities across the country was caused, to a large extent, by plastic bags choking

drains.

Madhusudan Hegde, Regional Head, East, HDFC Bank said, "We have undertaken this

initiative to generate awareness among the people about the dire need to eradicate plastic

bags from our life and protect the environment.


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"We will encourage citizens to use environment friendly and cost effective paper bags as

the best substitute. We feel that it is our social responsibility to support the KMC and the

state government in their drive to ban the use of plastic bags," he said.

Social activist and poet Chitra Lahiri, Calcutta University Bio Technology &

Environmental Science department head Sudip Bandopadhyay and television personality

Bratati Bandopadhyay participated in the campaign.

HDFC bank urges its customers to use the internet to transcact with them especially

in case of Mutual Funds by using HDFCMF Online slogan being.

With HDFCMC Online you will help save a lot of paper and we encourage you tochoose this eco-friendly mode of transacting. We hope you will help us in our endeavor

to protect our environment and help us SAVE PAPER, SAVE TREES.

INTERNAL AND EXTERNAL FACTOR EVALUATION

The IFE Matrix together with the EFE matrix is a strategy-formulation tool that can be

utilized to evaluate how a company is performing in regards to identified internal

strengths and weaknesses of a company. The IFE matrix method conceptually relates to

the Balanced Scorecard method in some aspects.

INTERNAL FACTOR EVALUATION (IFE)

Internal Factor Evaluation (IFE) matrix is a strategic management tool for auditing or

evaluating major strengths and weaknesses in functional areas of a business. IFE matrix


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also provides a basis for identifying and evaluating relationships among those areas. The

Internal Factor Evaluation matrix or short IFE matrix is used in strategy formulation.

STRENGTHS

1. HDFC is the strongest and most venerable play on Indian mortgages over the long

term. The management of the bank is termed to be one of the best in the country.

2. HDFC has differentiated itself from its peers with its diversified network and

revamped distribution strategy

3. HDFC has been highly proactive in passing on the cost and benefit to customers.

4. Besides the core business, HDFCs insurance, AMC, banking, BPO, and real estate

private equity businesses are also growing at a rapid pace and the estimated value of its

investments/subsidiaries explains ~30% of HDFCs market capitalization.

5. High degree of customer satisfaction.

6. Lower response time with efficient and effective service.

7. Dedicated workforce aiming at making a long-term career in the field.

8. Products have required accreditations.9. Superior customer service vs. competitors

10. Large share of low-cost deposits, higher net interest margin

11. Better quality of assets, NPA of 0.4 per cent

12. Free float available, FIIs can buy its stock

13. Higher profitability

WEAKNESSES

1. High dependence on individual loans.


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2. Major stake held by American financial groups which are under stress due to economic

slowdown.

3 .Customer service staff needs training.

4. Processes and systems, etc need to be better managed

5. Management cover insufficient.

6. Sectoral growth is constrained by low unemployment levels and competition for staff

7. Marginal international presence

8. No next line of leadership

9. Not very aggressive in M&A space, growing only organically

10. Possible takeover target

EXTERNAL FACTOR EVALUATION

External Factor Evaluation (EFE) matrix method is a strategic-management tool often

used for assessment of current business conditions. The EFE matrix is a good tool to

visualize and prioritize the opportunities and threats that a business is facing.

OPPURTUNITIES

1. Fast growing insurance business in the country.

2. Untapped rural markets.

3. Could extend to overseas broadly

4. Fast-track career development opportunities on an industry-wide basis.

5. An applied research centre to create opportunities for developing techniques to provide

added-value services.

6. Unique partnership to create job opportunities for IFBIs PGDBO students


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7. HDFC bank automates business processes with Staffware; HDFC Bank anticipates

major cost savings whilst maintaining high levels of customer service thanks to new

enterprise software agreement.

8. HDFC Bank plans to set up a non-banking finance company (NBFC) to undertake

fund-based activities .

9.In recent times, India has witnessed entry of many international banks like CITI

Bank, YES Bank etc which posses an external entrant threat to HDFCBank as this

Banks are known for their art of working and maintain high standards of customer

service.

10. After showing a significant growth overall, India is able to attract

many international financial & banking institutes, which are known

for their state of art working and keeping low operation costs.

THREATS

1. Loss of market share to commercial banks and HFCs

2. Higher than expected increase in funding cost

3. Risk of fraud and NPA accretion due to increase in interest rates and fall in property

prices is inherent to the mortgage business

4. Lack of infrastructure in rural areas could constrain investment.

5. High volume/low cost market is intensely competitive.

6. Very high competition prevailing in the industry

7. Extension overseas holds a lot of risk!

8. Threat from credit card collections dept.

9. Varying and In-Convenient ECS dates.

10. Unlike Government Banks, an account needs a minimum balance of Rs.10,000


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COMPETITIVE SWOT ANALYSIS

STRENGTHS WEAKNESSES

O

P

P

O

R

T

U

NI

T

I

E

S

S O Strategies

Strength: Large Capital base.

Opportunity: Market Expansion.

Strategy: Deep Penetration into

Rural Market.

W O Strategies

Weakness: Workforce

Responsiveness.

Opportunity: Outsourcing of Non Core Business.

Strategy: Outsource Customer

Care & other E-Helps.

T

H

R

E

A

T

S

S T Strategies

Strength: Low operating costs

Threat: Increased Competition

from others Pvt. Banks.

Strategy: Steps to EnsureLoyalty by old

Customers.

W T Strategies

Weakness: Not Equal to

International Standards.

Threat: Entry of many Foreign

Banks.

Strategy: Consider additional

benefits

Detailed Analysis:


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i. Strength - Opportunity Analysis.

Strength:

It is well know that HDFC Bank has the largest Authorised Capital Base in the

Banking System in India i.e. having a total capacity to raise Rs. 19,000,000,000 (Non

Premium Value).

Opportunity:

Seeing the present financial & economic development of Indian Economy and

also the tremendous growth of the Indian Companies including the

acquisition spree followed by them, it clearly states the expanding market for

finance requirements and also the growth in surplus disposal income of Indian

citizen has given a huge rise in savings deposits from the above point it is clear that

there is a huge market expansion possible in banking sector in India.

Strategy:

From the analysis of Strength & Opportunity the simple and straight possible

strategy for HDFC Bank could be - to penetrate into the rural sector of India for

expanding its market share as well as leading all other Pvt. Banks from a great

gap.

ii. Strength - Threat Analysis.

Strength:

HDFC Bank is not only known for large capital but also for having a low operations

cost though having huge number of branches and services provided.


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Threat:

After showing a significant growth overall, India is able to attract many

international financial & banking institutes, which are known for their state of art

working and keeping low operation costs.

Strategy:

To ensure that HDFC Bank keeps going on with low operation cost & have

continuous business it should simply promote itself well & provide quality service so

as to ensure customer loyalty, therefore guaranteeing continuous business.

iii. Weakness - Opportunity Analysis.

Weakness:

It is well known that workforce responsiveness in banking sector is

Very low in Indian banking sector, though HDFC Bank has better

responsible staff but it still lacks behind its counterparts like HSBC,

HDFC BANK, CITI BANK, YES BANK etc.

Opportunity:

In the present world, India is preferred one of the best places for out sourcing of

business process works and many more.

Strategy:

As international companies are reaping huge benefits after out-Sourcing there

customer care & BPOs, this same strategy should be implemented by HDFC Bank

so as to have proper customer service without hindering customer expectations.

iv. Weakness - Threat Analysis.


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Weakness:

Though having a international presence, HDFC Bank has not been able to keep up the

international standards in providing customer service as well as banking works.

Threat:

In recent times, India has witnessed entry of many international banks like CITI

Bank, YES Bank etc which posses an external entrant threat to HDFC Bank as

this Banks are known for their art of working and maintain high standards of

customer service.

Strategy:

After having new entrants threat, HDFC Bank should come up with Moreadditional benefits to its customer or may be even reduce some fees for any

additional works of customers.

Merger by HDFC bank

The Reserve Bank of India has approved the scheme of amalgamationof Centurion Bank of Punjab Ltd. with HDFC Bank Ltd. with effectfrom May 23, 2008.


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All the branches of Centurion Bank of Punjab will function as branches of HDFC Bank with effect from May 23, 2008. With RBIsapproval, all requisite statutory and regulatory approvals for the merger have been obtained.

The combined entity would have a nationwide network of 1167

branches; a strong deposit base of around Rs.1,22,000 crores and

net advances of around Rs.89,000 crores. The balance sheet size of

the combined entity would be over Rs.1,63,000 crores.

Merger with Centurion Bank of Punjab Limited

On March 27, 2008, the shareholders of the Bank accorded their consent to a scheme

of amalgamation of Centurion Bank of Punjab Limited with HDFC Bank Limited. The

shareholders of the Bank approved the issuance of one equity share of Rs.10/- each of

HDFC Bank Limited for every 29 equity shares of Re. 1/- each held in Centurion

Bank of Punjab Limited. This is subject to receipt of Approvals from the Reserve

Bank of India, stock exchanges and Other requisite statutory and regulatory

authorities. The shareholders. Also accorded their consent to issue equity shares and/or

warrants convertible into equity shares at the rate of Rs.1,530.13 each to HDFC


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Limited and/or other promoter group companies on preferential basis, subject to final

regulatory approvals in this regard.

Promoted in 1995 by Housing Development Finance Corporation (HDFC), India's

leading housing finance company, HDFC Bank is one of India's premier banks providing

a wide range of financial products and services to its over 11 million customers across

hundreds of Indian cities using multiple distribution channels including a pan-India

network of branches, ATMs, phone banking, net banking and mobile banking. Within a

relatively short span of time, the bank has emerged as a leading player in retail banking,

wholesale banking, and treasury operations, its three principal business segments.

The bank's competitive strength clearly lies in the use of technology and the ability to

deliver world-class service with rapid response time. Over the last 13 years, the bank

has successfully gained market share in its target customer franchises while

maintaining healthy profitability and asset quality.

As on March 31, 2008, the Bank had a network of 761 branches and 1,977 ATMs in327 cities. For the year ended March 31, 2008, the Bank reported a net profit of INR

15.90 billion (Rs.1590.2crore),up 39.3%, over the corresponding year ended

March 31, 2007. As of March 31, 2008 total deposits were INR 1007.69 billion,

(Rs.100,769 crore) up 47.5% over the corresponding year ended March 31, 2007. Total

balance sheet size too grew by 46.0% to INR1,331.77 billion (133177 crore).


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Centurion Bank of Punjab is one of the leading new generation private sector banks

in India. The bank serves individual consumers,small and medium businesses and

large corporations with a full range of financial products and services for investing,

lending and advice on financial planning. The bank offers its customers an array of

wealth management products such as mutual funds, life and general insurance and

has established a leadership 'position'. The bank is also a strong player in foreign

exchange services,personal loans, mortgages and agricultural loans.

Additionally the bank offers a full suite of NRI banking products to Overseas Indians.

On 29th August 2007, Centurion Bank of Punjab merged with Lord Krishna Bank

(LKB), post obtaining all requisite statutory and regulatory approvals. This

merger has further strengthened the geographical reach of the Bank in major towns andcities across the country, especially in the State of Kerala, in addition to its existing

dominance in the northern part of the country. Centurion Bank of Punjab now

operates on a strong nationwide franchise of 404 branches and 452 ATMs in 190

locations across the country, supported by employee base of over 7,500 employees.

In addition to being listed on the major Indian stock exchanges, the Banks

shares are also listed on the Luxembourg Stock Exchange.

ACHIEVEMENT IN 2007

Business Today-Monitor Group

survey

One of India's " Most Innovative Companies "

Financial Express-Ernst & YoungAward

Best Bank Award in the Private Sector category


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Global HR Excellence Awards- Asia Pacific HRMCongress:

'Employer Brand of the Year 2007 -2008' Award - First Runner up, & many more

Business Today 'Best Bank' Award

Dun & Bradstreet American ExpressCorporate BestBank Award 2007

'Corporate Best Bank' Award

The Bombay Stock

Exchange and NasscomFoundation'sBusiness for SocialResponsibilityAwards 2007

'Best Corporate Social Responsibility Practice' Award

Outlook Money & NDTV Profit

Best Bank Award in the Private sector category.

The Asian Banker Excellence in RetailFinancial ServicesAwards

Best Retail Bank in India

Asian Banker HDFC BANK Managing Director Aditya Puri wins the Leadership Achievement Award for India

NEWS ABOUT HDFC BANK

HDFC, HDFC Bank cut deposit rate by up to 0.25 pc
http://www.hdfcbank.com/aboutus/awards/default.htm#%23http://www.hdfcbank.com/aboutus/awards/default.htm#%23http://www.hdfcbank.com/aboutus/awards/default.htm#%23http://www.hdfcbank.com/aboutus/awards/dun_awards_07.HTMhttp://www.hdfcbank.com/aboutus/awards/default.htm#%23http://www.hdfcbank.com/aboutus/awards/default.htm#%23http://openwindow%28%22/common/bestbank07.htm%22,%22%22,%22width=640,height=450,scrollbars=yes%20,menubar=no,location=no,left=0,top=0%22)http://www.hdfcbank.com/aboutus/awards/award_2006.htmhttp://www.hdfcbank.com/aboutus/awards/award_2006.htmhttp://www.hdfcbank.com/aboutus/awards/default.htm#%23http://www.hdfcbank.com/aboutus/awards/default.htm#%23http://www.hdfcbank.com/aboutus/awards/default.htm#%23http://www.hdfcbank.com/aboutus/awards/dun_awards_07.HTMhttp://www.hdfcbank.com/aboutus/awards/default.htm#%23http://www.hdfcbank.com/aboutus/awards/default.htm#%23http://openwindow%28%22/common/bestbank07.htm%22,%22%22,%22width=640,height=450,scrollbars=yes%20,menubar=no,location=no,left=0,top=0%22)http://www.hdfcbank.com/aboutus/awards/award_2006.htmhttp://www.hdfcbank.com/aboutus/awards/award_2006.htm


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Thursday, June 18, 2009,17:41

http://news.oneindia.in/2009/06/18/hdfc-hdfc-bank-cuts-deposit-rate-by-upto-0-25-

pc.html

Mumbai, Jun 18: HDFC, India's major home loan financier has reduced its deposit rates

by up to 0.25 pc across various maturities with immediate effect. Meanwhile, India's

second largest private sector lender, HDFC Bank has also reduced its deposit rates by up

to 0.25 pc.

Paresh Sukthankar, the HDFC Bank Executive Director said, "The reduction will be

effective from Friday, Jun 19. This reduction is in line with the market trends and taking

into account the developments happening in the market in the recent past," he added.

Earlier India's largest bank, SBI and second largest lender ICICI Bank too had reduced

their deposit rates.

Bank Muscat to sell 0.5pc stake in HDFC Bank Tuesday, June 16, 2009,17:59 [IST]

http://news.oneindia.in/2009/06/16/bank-muscat-to-sell-05pc-stake-in-hdfc-bank.html

Mumbai, Jun 16: Bank Muscat announced on Tuesday, Jun 16 that it is planning to sell

its remaining holding in India's second largest private sector lender HDFC Bank within a

month. In a regulatory filing with the Muscat Stock Exchange, the bank's board of directors have confirmed its intention to dispose remaining 0.5 pc holding in HDFC

Bank. Oman's biggest lender further said, "Subject to market conditions and other

disposal criteria, we expect the sale process to conclude within the next thirty days."

As of Dec 31, 2008, Bank Muscat held 9,051,724 equity shares, representing 2.13 pc
http://news.oneindia.in/2009/06/18/hdfc-hdfc-bank-cuts-deposit-rate-by-upto-0-25-pc.htmlhttp://news.oneindia.in/2009/06/18/hdfc-hdfc-bank-cuts-deposit-rate-by-upto-0-25-pc.htmlhttp://news.oneindia.in/2009/06/16/bank-muscat-to-sell-05pc-stake-in-hdfc-bank.htmlhttp://news.oneindia.in/2009/06/18/hdfc-hdfc-bank-cuts-deposit-rate-by-upto-0-25-pc.htmlhttp://news.oneindia.in/2009/06/18/hdfc-hdfc-bank-cuts-deposit-rate-by-upto-0-25-pc.htmlhttp://news.oneindia.in/2009/06/16/bank-muscat-to-sell-05pc-stake-in-hdfc-bank.html


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http://www.moneycontrol.com/news/business/hdfc-bank-to-sell-silver-

barsmay_452504.html

HDFC Bank will sell silver bars during a May local festival for precious metals

purchases, the first time ever by a bank, as demand picks up, a top executive of the bank

said on Monday.

The move, to sell silver bars weighing 50 grammas each, indicates domestic consumers,

the world's largest buyers of gold, are willing to add silver to their investment portfolio

for diversification.

The private-sector bank, a large seller of gold, expects a 30% rise in its gold coins sales

during the Akshaya Tritiya festival on May 16, Seshan Ramakrishna, head of the bank's

retail liabilities group told Reuters.

Remain invested in HDFC Bank: Tulsian

Published on Mon, Apr 19, 2010 at 12:00 | Updated at Mon, Apr 19, 2010 at 17:14 |Source : CNBC-TV18

Remain invested in HDFC Bank , says Investment Advisor, SP Tulsian .

Tulsian told CNBC-TV18, "Amongst the smaller private sector bank my call is on South

Indian Bank, Lakshmi Vilas Bank, Karnataka, Dhanalakshmi Bank, and somebody can

keep a view of 6-12 months. In fact I see a lot of corporate events or happenings on these

banks but coming on the larger ones, we have read the report that HDFC Bank has

surpass the ICICI Bank in terms of the retail lending and they advance an amount of Rs

4,000 crore in the preceding month.

He further added, I think there is good upside in HDFC Bank.

You do not need to get out of this stock but amongst the larger space you have three

banks coming in your mind amongst the private sector that is HDFC, ICICI and Axis
http://www.moneycontrol.com/news/business/hdfc-bank-to-sell-silver-barsmay_452504.htmlhttp://www.moneycontrol.com/news/business/hdfc-bank-to-sell-silver-barsmay_452504.htmlhttp://www.moneycontrol.com/india/stockpricequote/banks-private-sector/hdfc-bank/HDF01http://www.moneycontrol.com/india/stockpricequote/banks-private-sector/hdfc-bank/HDF01http://connect.in.com/sp-tulsian/profile-517217.htmlhttp://www.moneycontrol.com/news/business/hdfc-bank-to-sell-silver-barsmay_452504.htmlhttp://www.moneycontrol.com/news/business/hdfc-bank-to-sell-silver-barsmay_452504.htmlhttp://www.moneycontrol.com/india/stockpricequote/banks-private-sector/hdfc-bank/HDF01http://www.moneycontrol.com/india/stockpricequote/banks-private-sector/hdfc-bank/HDF01http://connect.in.com/sp-tulsian/profile-517217.html


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Bank. But in terms of appreciation my view lies or goes more in favor of ICICI Bank

because even you make the comparison you find HDFC and Axis Bank slightly richly

valued as compared to ICICI Bank.

If you really have invested in the stock and have a long term horizon of 6-12 months

time, I do not think that one should have any complaint or one should get too much

perturbed by this short term moves like CRR hike or may be the repo and reverse repo

rate hike and all sort of things. But the stock looks quite good. Advice is to remain

invested and those who want to buy can make a fresh entry maybe on a fall of either by

tomorrow or maybe on a fall of 2-3% from hereon."HDFC Bank has touched an intraday

high of Rs 1,954.75 and an intraday low of Rs 1,930.00. At 12:04 hrs the share was

quoting at Rs 1,931.00, down Rs 25.95, or 1.33%.

The company touched its 52 week high Rs 1,986.00 and 52 week low Rs 1,097.00 on 29Mar, 2010 and 21 Apr, 2009, respectively. Currently, it is trading -2.77% below its

52-week high and 76.03% above its 52-week low. Market capitalization stands at Rs

88,390.23 crore .

HDFC Bank has support at Rs 1900-1910: MohindarPublished on Sat, Apr 17, 2010 at 11:41 | Updated at Sat, Apr 17, 2010 at 15:08 |

Source : CNBC-TV18

http://www.moneycontrol.com/news/stocks-views/hdfc-bank-has-support-at-rs-1900-

1910-mohindar_452155.html

Rahul Mohindar of viratechindia.com is of the view that HDFC Bank has support at Rs

1900-1910.

Mohindar told CNBC-TV18, From a trading perspective, Rs 1900-1910 that is the areaof support for HDFC Bank. We have moved above that level, we are staying above that

level in the last 2-3 session which makes me very comfortable and I think Rs 2,050 is

where we would be heading even in the next couple of days. So I am quite comfortable

on this stock, even on a long-term basis."
http://www.moneycontrol.com/news/stocks-views/hdfc-bank-has-support-at-rs-1900-1910-mohindar_452155.htmlhttp://www.moneycontrol.com/news/stocks-views/hdfc-bank-has-support-at-rs-1900-1910-mohindar_452155.htmlhttp://connect.in.com/rahul-mohindar/profile-517178.htmlhttp://www.moneycontrol.com/india/stockpricequote/banks-private-sector/hdfc-bank/HDF01http://www.moneycontrol.com/india/stockpricequote/banks-private-sector/hdfc-bank/HDF01http://www.moneycontrol.com/news/stocks-views/hdfc-bank-has-support-at-rs-1900-1910-mohindar_452155.htmlhttp://www.moneycontrol.com/news/stocks-views/hdfc-bank-has-support-at-rs-1900-1910-mohindar_452155.htmlhttp://connect.in.com/rahul-mohindar/profile-517178.htmlhttp://www.moneycontrol.com/india/stockpricequote/banks-private-sector/hdfc-bank/HDF01


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He further added, "I dont think its a good percentile mover from an investment angle, I

would even tend to go down and look at other stocks like a Dena Bank or Bank of India

even if it means heading to PSUs. From a percentile perspective, I would say no in terms

of an investment but certainly there is a very big safety cushion that you have in such a

stock. So, I think more importantly, I like HDFC Bank more from short-term buy point

of view and I clearly see the next Rs 100-120 coming in.

See RBI raising CRR by 50 bps on Apr 20: HDFCPublished on Thu, Apr 15, 2010 at 20:53 | Updated at Thu, Apr 15, 2010 at 22:46 |

Source : CNBC-TV18

HDFC is back in the home loan competition. The company has introduced a new dual

home loan product, under which home loans will be available at 8.25% for the first year

and 9% for the second year and at market rates from the third year.

For loans under Rs 30 lakh, the bank will levy a rate of 475 bps below the prime lendingrate (PLR) from the third year. This works out to 9% as HDFC's PLR is 13.75%. The

third year rate has been reduced by 25 bps

In an interview with CNBC-TV18, Keki Mistry , Vice Chairman & CEO, HDFC spoke

about the new product.

CUSTOMER SERVICE STRATEGY

Our strategy is based on one of the weaknesses of HDFC bank. In order to improve

customer service we have put together a comprehensive strategy as to how to improve

this subject area.

DEFINITION
http://connect.in.com/keki-mistry/profile-496088.htmlhttp://www.moneycontrol.com/india/stockpricequote/finance-housing/housing-development-finance-corporation/HDFhttp://www.moneycontrol.com/india/stockpricequote/finance-housing/housing-development-finance-corporation/HDFhttp://connect.in.com/keki-mistry/profile-496088.htmlhttp://www.moneycontrol.com/india/stockpricequote/finance-housing/housing-development-finance-corporation/HDF


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Customer Service

Customer Service is the sum total of what an organisation does to meet customer

expectations and produce customer satisfaction.

Think about the definition and relate it to your own and your teams work with

customers. The actual services that a customer receives will vary from one situation to

another. The combination of services that you deliver to customers depends upon a

number of factors:

The core product or service being delivered

The organisation delivering the service

The individual delivering the service

The customer receiving the service

The specific point or stage in the Customer Transaction that has been reached

Service is provided at various Touch-Points during a customers relationship with an

organization this relationship could last for years, especially for your organisations

valuable, long-standing customers. In addition, there are different aspects of service

provided at different times during a customer transaction, such as before, during and after

a purchase.

This applies to internal customers, as well as external customers. If, for example, a

service is being provided to an internal customer this could be before, during or after a

particular task was set. Remember also that the service itself might actually be provided

by different means. Service can be provided by a person, such as a customer orders

assistant, a logistics operator or a retail assistant. Service can provided by automated

systems such as E-Commerce (or self-service) websites, or automated telephone response

systems Some customers may prefer a human interaction to an automated or self-service

interaction. Organisations need to choose carefully the type of interaction they are goingto provide at these touch-points and this will depend on costs to some extent. Indeed,

customers do not necessarily reject automated services. Some world-renowned online

retailers have established their global reputations by delivering very high levels of

service through automated sales and service systems. Whatever the particular channel

that your organisation uses for delivering its customer service, it is essential that the


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quality and reliability is as high as possible and that you know what your customers think

of the services they receive.

Service Characteristics

Customers who do business with you have high expectations. They expect as a minimum

that you will deliver the Core Product or Core Service to the appropriate specifications

and quality. The correct items should be delivered, as ordered, to the right destination and

at the right time. In the case of a core service, that must also be provided as agreed - often

within a Service Level Agreement or contract.

But what exactly do your own customers expect? It is important for you and your team to

analyse the detailed service characteristics that you deliver to customers. Think carefullyabout the range of service characteristics that your team provides.

Service characteristics are the individual elements that make up the service provided to

Customers. Service Characteristics can be grouped under the following seven headings,

with examples given below.

Reliability

For example:

The quality attached to a product

Prompt delivery of an item

Correct numbers of products requested in a delivery

Competence

For example:

Efficient packaging of a number of items in a delivery

Efficient delivery and unloading of items at the customers premises

Being an accurate advisor to customers


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Responsiveness

For example:

Service recovery processes in the case of problems, with adequate compensation.

appropriate

Responding to internal customers needs on time

Helping internal customers resolve problems and difficulties

Communication

For example:

Pre-purchase product information

After-sales services and information

Providing accurate and timely information for internal customers

Understanding Customers

For example:

Taking the trouble to check on customers requirements

Getting to know the customers processes

Understanding the customers business and anticipating their future needs

Accessibility

For example:

Being available when needed

Being flexible

Having service available at as many times and locations as possible

Making use of technology to provide a more flexible service

Personal Qualities

For example:

Trustworthy

Being proficient and professional


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Honesty

Approachability

Being pleasant and courteous to customers

Being a good listener when needed, and showing empathy.

Customer Focused Culture

A Customer Focused Culture exists in a team when customers (both external and

internal) are given a the highest priority in the objectives, targets, activities, and decisions

of the team. The customer is placed at the heart of everything that the team does. The

Components of Excellent Customer Service are described below.

Deliver The Promise


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Keep to what you and your organisation say you will do. Understand the way your

customers want to be treated and adapt your behaviour as far as possible. Whatever you

do, dont let your service delivery fall short of your customers expectations.

Go The Extra Mile

Try, if you can, to over-deliver. Delight your customers by giving them what they expect,

plus some more. If you can, provide something extra for every customer. This will help

establish loyal customers, who will recommend you to colleagues, friends and family,

and build a great reputation for your organisation. As an example, one quality which

customers may want from your team is the ability to interact emotionally. In other words,your team members should not simply carry out their work in a mechanical way when

dealing with customers. Your team members need to be skilled and knowledgeable in

order to:

Recognise their own emotions and their customers emotional reactions

Control their own emotions

Use their own emotions to make good decisions

Act effectively

Make It Personal

Customers want to be treated as individuals. They love it when you say or do something

that shows you are interested in them. It does not have to be anything big or difficult that

you do but whatever way you choose, make sure it is genuine. Customers in many

situations will expect

Keep It Simple

Make the customer transaction as simple as possible - for the customer. In general, they

just want to do business with you and then get on with the rest of their day. Yes, they


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want to be treated specially, but they also want the transaction to be simple and

straightforward. To keep it simple your team will need clear procedures and great

internal communication. Processes should be more customer focused than organisation

focused.

Resolve Problems Well

If a customer has a problem, take it seriously and resolve it well. If you resolve a problem

for customers in a quick and responsive way, they will be your most loyal ambassadors

in the future. Make the solution simple and deal with it efficiently. Customers want

problems to be resolved quickly, but above all they need to be kept informed. They want

to know what you are doing about the problem, and what will happen next. Learn frommistakes, so that your team uses a problem or complaint as a way of improving the way

you do things. Create a no-blame culture in your team - accepting that problems do

happen and they should be shared and owned up to.

STRATEGIC QUALITY POLICY

SECURITY : The bank provides long term financial security to their policy. The bank does this by offering life insurance and pension products.

TRUST : The bank appreciates the trust placed by their policy holders in the bank.

Hence, it will aim to manage their investments very carefully and live up to this trust.

INNOVATION : Recognizing the different needs of our customers, the bank offers a

range of innovative products to meet these needs.

INTEGRITY

CUSTOMER CENTRIC


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expand its business. It has a strong image in the mind of its customers. It is running many

programs for its good will and to satisfy its customer base. It grabbed many awards for

its services and working.

BIBLOGRAPHYPublished on Thu, Apr 15, 2010 at 20:53 | Updated at Thu, Apr 15, 2010 at 22:46

Published on Sat, Apr 17, 2010 at 11:41 | Updated at Sat, Apr 17, 2010 at 15:08 |Source : CNBC-TV18

Thursday, June 18, 2009,17:41 http://news.oneindia.in/2009/06/18/hdfc-hdfc-bank-cuts-

deposit-rate-by-upto-0-25-pc.html

Published on Mon, Apr 19, 2010 at 12:00 | Updated at Mon, Apr 19, 2010 at 17:14 |

Source : CNBC-TV18

Published on Tue, Apr 20, 2010 at 09:21 | Updated at Tue, Apr 20, 2010 at 11:09 |

Source : Reuters

30-35% appreciation likely in HDFC Bank: Bhambwani

Published on Wed, Apr 21, 2010 at 16:15 | Updated at Wed, Apr 21, 2010 at 17:31 |
http://news.oneindia.in/2009/06/18/hdfc-hdfc-bank-cuts-%20%20%20%20%20deposit-rate-by-upto-0-25-pc.htmlhttp://news.oneindia.in/2009/06/18/hdfc-hdfc-bank-cuts-%20%20%20%20%20deposit-rate-by-upto-0-25-pc.htmlhttp://news.oneindia.in/2009/06/18/hdfc-hdfc-bank-cuts-%20%20%20%20%20deposit-rate-by-upto-0-25-pc.htmlhttp://news.oneindia.in/2009/06/18/hdfc-hdfc-bank-cuts-%20%20%20%20%20deposit-rate-by-upto-0-25-pc.html


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Source : CNBC-TV18

Thursday, June 18, 2009,17:41

http://news.oneindia.in/2009/06/18/hdfc-hdfc-bank-cuts-deposit-rate-by-upto-0-25-

pc.html

finance.indiamart.com/investment_in_india/ hdfc _ bank .html www.hdfcbank.com

Wholesale Banking Corporates

www.oppapers.com/subjects/ introduction-of-hdfc -page1.html
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