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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.
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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.htm8/9/2019 Priyanka B30
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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
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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.html8/9/2019 Priyanka B30
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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/HDF018/9/2019 Priyanka B30
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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/HDF8/9/2019 Priyanka B30
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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.html8/9/2019 Priyanka B30
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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
http://news.oneindia.in/2009/06/18/hdfc-hdfc-bank-cuts-deposit-rate-by-upto-0-25-pc.htmlhttp://news.oneindia