Professional Documents
Culture Documents
1
BRIEF HISTORY
Housing Development Finance Corporation Limited, more popularly known as
HDFC Bank Ltd, was established in the year 199, as a part o! the liberali"ation o!
the #ndian Banking #ndustry by $eserve Bank o! #ndia %$B#&' #t was one o! the
!irst banks to receive an (in principle( approval !rom $B#, !or setting up a bank in
the private sector' )he bank was incorporated with the name (HDFC Bank
Limited(, with its registered o!!ice in *umbai' )he !ollowing year, it started its
operations as a +cheduled Commercial Bank'
HDFC Bank Limited' )he ,roup(s principal activities are to provide banking and
other !inancial B-./' )he ,roup operates through !our segments0 )reasury,
$etail Banking, 1holesale Banking and 2ther Banking Business' )he )reasury
B-./ segment consists o! net interest earnings on investments port!olio o! the
bank and gains or losses on investment operations' )he $etail Banking segment
3
serves retail customers through a branch network and other delivery channels' )his
segment raises deposits !rom customers and makes loans and provides advisory
B-./ to customers' )he 1holesale Banking segment provides loans and
transaction B-./ to corporate and institutional customers' )he 2ther Banking
2perations segment provides B-./ relating to credit cards, debit cards, third
party product distribution and primary dealership business and other associated
costs' )he Bank was incorporated on 45th -ugust 199' - new private sector
Bank promoted by housing Development Corporation Ltd' %HDFC&, a premier
housing !inance company' )he bank is the !irst o! its kind to receive -n in6
principle approval !rom the $B# !or establishment o! a bank in the private sector'
Certi!icate o! Commencement o! Business wasreceived on 15th 2ctober 199
!rom $B#' )he Bank transacts both traditional commercial banking as well as
investment banking' HDFC, the promoter o! the bank has entered into an
agreement with .ational 1estminster Bank 7c' and its subsidiaries %.at west
,roup& !or subscribing 358 o! the banks issued capital and providing technical
assistance in relation to the banks proposed banking business'
Growth and Development of the Organization: 6
!!"#
2n 19'1'199:, 95,;9,945 .o' o! e<uity shares were allotted to =arrington 7te' Ltd'
-nother 55,55,555 e<uity shares were allotted on private placement basis to
4
.atwest ,roup on 9':'199:' :55,55,555 shares were allotted to the public on
9':'9: )he Bank opened its !irst branch in $amon House at Churchgate, *umbai
on =anuary 19th' )he Bank has created an e!!icient operating system using well
tested state6o!6the6art so!tware#
!!$
;5 .o' o! e<uity shares issued to subscribers to the *emorandum >-rticles o!
-ssociation on 45th -ugust 199' 2n the same date :55,55,555 e<uity shares
were allotted to HDFC promoters' :59,35,555 shares were allotted to HDFC
?mployees 1el!are )rust and HDFC Bank ?mployees 1el!are )rust on 33nd
December,
!!%
HDFC Bank has entered the banking consortia o! over :5 corporate, including
some leading multinational companies, !lagship companies o! local business
houses and strong public sector companies' HDFC Bank has set up a state6o!6the6
art dealing room to handle all transactions possible in #ndian !inancial markets'
)he Certi!icates o! Deposits were awarded a 771@ rating which is the highest
rating !or short term instruments indicating superior capacity !or repayment'
&''
)he Bank has opened its !irst branch in -urangabad' HDFC Standard Life
Insurance has entered into a memorandum of understanding with the Chennai6
based #ndian Bank' )he Bank has launched the international *aestro debit card in
association with *aster Card' HDFC Bank will launch its credit card in =une
through link6ups with *asterCard and Aisa'L)trade'com has entered into a
strategic tie6up with HDFC Bank to provide .et banking B-./ to online
investors' +tandard Chartered Bank, HDFC Bank and Bharat 7etroleum
Corporation have Boined the ?6Cash Forum which has been set up by the +mart
Card Forum o! #ndia' HDFC Bank has launched a new campaign !or its ease
savings account' HDFC Bank entered into a strategic tie6up with )ally +olutions
7vt' Ltd' to o!!er online real time accounting B-./ to small and medium
enterprises' )he Bank has opened !our -)*s outlets in Bangalore at Coles $oad,
$) .agar, $aBaBi .agar and =aya .agar on *arch 39' HDFC Standard Life
Insurance has launched a CDevelopment #nsurance 7lan( a low cost li!e insurance
product developed speci!ically to meet the needs o! economically weaker sections'
)wo Directors, *r' +'+' )hakur and *r' -mit =udge, have resigned !rom the board
o! the bank e!!ective !rom *arch 45' HDFC Bank !iles with D+ regulators to list
more than 11 million -merican Depositary +hares on the New York Stock
Exchange'
)oday HDFC Bank has 1,13 branches and over 4,39: -)*s, in :3E cities in
#ndia, and all branches o! the bank are linked on an online real6time basis'
F3G
-s o!
+eptember 45, 355E the bank had total assets o! #.$ 1559'E3 billion'
F4G
For the
:
!iscal year 355E659, the bank has reported net pro!it o! $s'3,3'9 crore, up 18
!rom the previous !iscal' )otal annual earnings o! the bank increased by :E8
reaching at $s'19,933'E crore in 355E659'
(re)ent Stat*) of the Organization:+
*arch 355; *arch 355E *arch 3559
Citied 33E 419 :3
Branches :4: 9E 113
-)*s 1434 195: 43;:
Housing Development Finance Corporation Limited, more popularly known as
HDFC Bank Ltd, was established in the year 199, as a part o! the liberali"ation o!
the #ndian Banking #ndustry by $eserve Bank o! #ndia %$B#&' #t was one o! the
!irst banks to receive an (in principle( approval !rom $B#, !or setting up a bank in
the private sector' )he bank was incorporated with the name (HDFC Bank
Limited(, with its registered o!!ice in *umbai' )he !ollowing year, it started its
operations as a +cheduled Commercial Bank' )oday, the bank boasts o! as many as
9
113 branches and over 43;: -)*s across #ndia' -malgamation
#n 3553, HDFC Bank witnessed its merger with )imes Bank Limited %a private
sector bank promoted by Bennett, Coleman > Co' H )imes ,roup&' 1ith this,
HDFC and )imes became the !irst two private banks in the .ew ,eneration
7rivate +ector Banks to have gone through a merger' #n 355E, $B# approved the
amalgamation o! Centurion Bank o! 7unBab with HDFC Bank' 1ith this, the
Deposits o! the merged entity became $s' 1,33,555 crore, while the -dvances
were $s' E9,555 crore and Balance +heet si"e was $s' 1,94,555 crore'
HE,D OFFI-E
HDFC Bank
$amon House, 199, Backbay $eclamation,
H ) 7arekh *arg, Church gate
*umbai 6 55535
(hone: @91 %33& 99419555, 99949555, 99419595
Fa.: @91 %33& 335EE4
/e0)ite: www'hd!c'com
Te1h+Savv2
HDFC Bank has always prided itsel! on a highly automated environment, be it in
terms o! in!ormation technology or communication systems' -ll the branches o!
;
the bank boast o! online connectivity with the other, ensuring speedy !unds
trans!er !or the clients' -t the same time, the bank(s branch network and
-utomated )eller *achines %-)*s& allow multi6branch access to retail clients'
)he bank makes use o! its up6to6date technology, along with market position and
eIpertise, to create a competitive advantage and build market'
-,(IT,3 STR4-T4RE
-t present, HDFC Bank boasts o! an authori"ed capital o! $s ::5 crore %$s:':
billion&, o! this the paid6up amount is $s 3'9 crore %$s''3 billion&' #n terms o!
e<uity share, the HDFC ,roup holds 19'8' Foreign #nstitutional #nvestors %F##s&
have around 3E8 o! the e<uity and about 1;'98 is held by the -D+ Depository %in
respect o! the bank(s -merican Depository +hares %-D+& #ssue&' )he bank has
about :;5,555 shareholders' #ts shares !ind a listing on the +tock ?Ichange,
*umbai and .ational +tock ?Ichange, while its -merican Depository +hares are
listed on the .ew Jork +tock ?Ichange %.J+?&, under the symbol (HDB(
F45-TIO5,3 DE(,RT6E5TS OF THE ORG,5I7,TIO5:+
)he !unctional department o! the organi"ation consists o! the H$ department, the
administrative department and the eIecutive department' )he H$ department o!
the organi"ation consists o! the people who employ the 7ersons who they think
would be able to do Bustice with the Bob handled' )he administrative department o!
E
the organi"ation consists o! the director and the manager o! the organi"ation' )hey
preside the organi"ation and control all the operations o! the organi"ation such that
the organi"ation could run in a smooth and e!!ective manner' )he eIecutive
department o! the organi"ation consists o! the various employees who eIecute the
Bob undertaken by them' )he employees consists o! the team leaders, the
Corporate !inancial consultants,' the telecallers, various sta!!s and Bunior sta!!s
who are the main structural !ramework o! the organi"ation' )he organi"ation thus
runs with the e!!ective coordination o! the H$ department, the administrative
department and the eIecutive department such that the supervisors o! the
organi"ation preside over the subordinate employees to give them directions about
!ul!illing their works most e!!iciently and e!!ectively' )echnical Consultancy
Department0 )he )echnical Consultancy Department is responsible !or technical
appraisal o! industrial proBects' )he mission o! the division is aimed towards the
veri!ication o! the technical viability o! industrial proBects and assisting the Funds
management in taking the decisions that re<uire technical eIpertise' *oreover, it
is responsible !or conducting technical studies and rendering technical consultancy
B-./ to certain industrial sectors !or the purposes o! investigating modern
technologies and productivity levels !or local manu!acturing plants'
9
H R DE(,RT6E5T:
HDFC Human $esources department plans and direct !or the employee population
as well as they are having the !ollowing !unctions as06
Hiring
7romotions
$eassignments
7osition classi!ication and grading
+alary determination
7er!ormance appraisal review and processing
7ersonnel data entry and records maintenance
7olicy development
1ork permitting immigration visa program
1orkersK compensation
Finance Department0
)he Finance *anager is responsible !or all aspects o! the accounting and !inancial
administration o! the HDFC, the supervision o! the implementation o! the HDFC
!inancial policies, directives and procedures and the initiation o! the !inancial
plans within the guidelines o! HDFC )he department contains several distinct
sections, each o! which is responsible !or a proportion o! the activities taking place
within the !inance department'
6,R8ETI5G -O5S43T,5-Y DE(,RT6E5T:
15
)he *arketing Consultancy Department plays and important role within the Fund
as it studies and analy"es marketing in!ormation in order to build solid base !or
management decisions' )he division also assists proBects sponsors in !ormulating
solid marketing strategies to improve their industries and strengthen their position
in the local and international markets'
RESE,R-H DE(,RT6E5T:
)he $esearch Department is having the capacity to act through !our composing
units i'e', the market research unit, economic studies unit, and statistical studies
unit' #t is the mission o! the division to provide support B-./ !or in!ormation and
consultancy to the senior management and division in the areas o! economic,
statistical and marketing in!ormation and consultancy through data analysis,
processing o! economic and statistical data, market research studies and publishing
related periodical reports'
11
ORGANISATIONAL
STRUCTURE
ORG,5I7,TIO5 STR4-T4RE
13
)he organi"ation structure o! the company HDFC is such that it comprises o! the
departments and the employees in the hierarchical order so that they are able to
per!orm their !unctions and duties smoothly and e!!ectively doing their Bob in a
manner in which it should be done' )he organi"ation is headed by the
administrative department which coordinates and controls the eIecutive
department' )he eIecutive department is a link !rom the top and the bottom
comprising o! the lower level employees such that they work together to !ul!ill the
common obBective o! getting business !rom the persons who get in touch with
them and see to it that they are provided with the best o! the B-./ which
constitute giving !inancial advice to providing -ccount to the customers' )he
lower level employees and the corporate !inancial consultants work together to see
to it that the database !or providing !inancial B-./ to su!!icient number o! people
is made ')hey work together to see to it that this database is !ollowed and worked
upon such that more and more number o! people get themselves avail the !inancial
B-./ o! the organi"ation' )eam leaders who !orm the part o! the administrative
department o! the 2rgani"ation make sure that the clients that turn up !or the
!inancial B-./ are dealt with most e!!iciently and e!!ectively'
)he organi"ational structure is well planned out and it !ollows a simple !ormat
which is !ollows0
BO,RD OF DIRE-TORS
14
*r' =agdish Capoor, Chairman
*r' /eki *istry
*rs' $enu /arnad
*r' -rvind 7ande
*r' -shim +amanta
*r' Chander *ohan Aasudev
*r' ,autam Divan
Dr' 7andit 7alande
*r' -ditya 7uri, Managing Director
*r' Harish ?ngineer, Executive Director
*r' 7aresh +ukthankar, Executive Director
*r' Aineet =ain (upto 2!"2!2##$%
SE5IOR 6,5,GE6E5T TE,6
*r' - 7arthasarthy
*r' -' $aBan
*r' -bhay -ima
*r' -nil =aggia
*r' Bharat +hah
*r' ,' +ubramanian
1
*r' /ai"ad Bharucha
*rs' *andeep *aitra
*r' .avin 7uri
*r' 7ralay *ondal
*r' $ahul Bhagat
*r' +ashi =agdishan
*r' +udhir *' =oshi
E9E-4TI:E :I-E (RESIDE5T
;3EG,3< = -O6(,5Y SE-RET,RY
*r' +anBay Dongre
ST,T4TORY ,4DITORS
*Hs' Haribhakti > Co',
C&artered 'ccountants
REGISTERED OFFI-E
HDFC Bank House,
1:
+enapati Bapat *arg,
Lower 7arel,
1ebsite0 www'hd!cbank'com
)el0 @ 91 33 99:31555L FaI0 @ 91 33 3995;4;
*umbai 55 594'
)el0 @ 91 33 99;1331461
FaI0 @ 91 33 3E3145
ORG,5I7,TIO5 -H,RT:+
19
?ach team lead has a team comprising only o! both senior as well as Bunior market
research analyst who aid the team lead in the entire market research process as it
has been discussed previously' )his is the basic organi"ational structure !ollowed
by HDFC B-./'
1;
VISION, MISSION AND
PHILOSOPHY
:ISIO5
1E
)o build a global enterprise !or all our stakeholders, and
- great !uture !or our country'
)o give millions o! young #ndians the power to shape their destiny,
)he means to reali"e their !ull potential'
Aalue creation rather than si"e alone will be our business driver'
6ISSIO5
HDFC Bank began operations in 199: with a simple mission0 to be a "World-
class Indian Bank"' 1e reali"ed that only a single6minded !ocus on product
<uality and service ?Icellence would help us get there' )oday, we are proud to
say that we are well on our 1ay towards that goal'
(HI3OSO(HY
19
)he same problem was with the all other branches o! HDFC Bank even out
o! the 7one city' )he management is conducting the same research on a big
ground while my contribution is tiny' )hough my sample si"e and
geographical area was de!ined and con!ine to a particular territory but the
application o! output !rom the research are going to be wide'
(ROD4-T S-O(E:
M +tudying the increasing business scope o! the bank'
M *arket segmentation to !ind the potential customers !or the bank'
M )o study how the various products are positioned in the market'
M Corporate marketing o! products'
M CustomersK perception on the various products o! the bank'
35
PERFORMANCE
31
(ERFOR6,5-E
HDF- Ban> 3imited ,nn*al Report &''?+'!
FI5,5-I,3 (ERFOR6,5-E
%$s' in crores&
For the year ended
*arch 41, 3559 *arch 41, 355E
Deposits and 2ther Borrowings 1:,9;' 15:,494':N
-dvances 9E,EE4'5 94,39'9
)otal #ncome 19,933'9 13,49E'3
7ro!it be!ore Depreciation and )aI 4,9:9'3 3,::3'
.et 7ro!it 3,3:'5 1,:95'3
7ro!it brought !orward 3,:;'9 1,943'5
)otal 7ro!it available !or -ppropriation ,E19'9 4,:33'3
,((RO(RI,TIO5S
)rans!er to +tatutory $eserve :91'3 49;':
)rans!er to ,eneral $eserve 33': 1:9'5
)rans!er to Capital $eserve 94'9 6
)rans!er to #nvestment Fluctuation $eserve %14'9& 4E':
33
7roposed Dividend 3:' 451'4
)aI including +urcharge and ?ducation Cess on Dividend ;3'4 :1'3
?ducation Cess on Dividend paid !or 7rior Jear 5'9 5'1
Balance carried over to Balance +heet 4,::'9 3,:;'9
( C&ange pursuant to rec)assification
DIRE-TORS@ RE(ORT
)he Bank posted total income and net pro!it o! $s' 19,933'9 crores and $s' 3,3:'5
crores respectively !or the !inancial year ended *arch 41, 3559 as against $s'
13,49E'3 crores and $s' 1,:95'3 crores respectively in the previous year'
-ppropriations !rom the net pro!it have been e!!ected as per the table given above'
DI:IDE5D
Jour Bank has had a consistent dividend policy o! balancing the dual obBectives o!
appropriately rewarding shareholders through dividends and retaining capital to
maintain a healthy capital ade<uacy ratio to support !uture growth' #t has had a
consistent track record o! moderate but steady increases in dividend declarations
over its history with the dividend payout ratio ranging between 358 and 3:8'
Consistent with this policy, and in recognition o! the overall per!ormance
34
TO THE 6E6BERSA
Jour Directors have great pleasure in presenting the Fi!teenth -nnual $eport on
the business and operations o! your Bank together with the audited accounts !or
the year ended *arch 41, 3559' during 355E659, your directors are pleased to
recommend a dividend o! 1558 !or the year ended *arch 41, 3559, as against
E:8 !or the year ended *arch 41, 355E' )his dividend shall be subBect to taI on
dividend to be paid by the Bank'
,ward)
Jour Bank continued to receive awards and gain recognition !rom leading
domestic and international organi"ations during the !iscal 355E659' +ome o! them
are0
?uromoney -nnual +urvey 0 )he Best local Bank' -lso $anked
1st in $elationship *anagement and 3nd in private banking services overall'
Business #ndia 0 Best Bank 355E'
3
Forbes -sia 0 2ne o! the Fab :5 Companies in -sia 7aci!ic' 14 HDFC Bank
Limited -nnual $eport 355E659
DIRE-TORS@ RE(ORT
.asscom #) Dser -ward 355E 0 Best #) -doption in the Banking +ector'
-sian Banker ?Icellence in $etail Financial +ervices 0 Best $etail Bank 355E'
-siamoney 0 Best Local Cash *anagement Bank -ward'
*icroso!t > #ndian ?Ipress ,roup 0 +ecurity +trategist -ward 355E'
1orld )rade Center -ward o! Honour 0 For outstanding contribution to
international trade services'
R,TI5GS
)he Bank has its deposit programs rated by two rating agencies 6 Credit -nalysis
> $esearch Limited %C-$?& and Fitch $atings #ndia 7rivate Limited' )he BankKs
FiIed Deposit programme has been rated OC-$? --- %FD&K F)riple -G by C-$?,
which represents instruments considered to be Po! the best <uality, carrying
negligible investment riskQ' C-$? has also rated the bankKs Certi!icate o! Deposit
%CD& programme P7$ 1@Q which represents Psuperior capacity !or repayment o!
short term promissory obligationsQ' Fitch $atings #ndia 7vt' Ltd' %1558 subsidiary
o! Fitch #nc'& has assigned the Pt--- % ind &Q rating to the BankKs deposit
3:
programme, with the outlook on the rating as PstableQ' )his rating indicates
Phighest credit <ualityQ where Pprotection !actors are very highQ'
)he Bank also has its long term unsecured, subordinated %)ier ##& Bonds rated by
C-$? and Fitch $atings #ndia 7rivate Limited and its )ier # perpetual Bonds and
Dpper )ier ## Bonds rated by C-$? and C$#+#L Ltd' C-$? has assigned the
rating o! PC-$? ---Q !or the subordinated )ier ## Bonds while Fitch $atings
#ndia 7vt' Ltd' has assigned the rating P---%ind&Q with the outlook on the rating
as PstableQ' C-$? has also assigned PC-$? --- F)riple -G !or the Banks
7erpetual bond and Dpper )ier ## bond issues' C$#+#L has assigned the rating
P---H+tableQ !or the BankKs perpetual Debt programme and Dpper )ier ## Bond
issue' #n each o! the cases re!erred to above, the ratings awarded were the highest
assigned by the rating agency !or those instruments'
I))*an1e of EB*it2 Share) and /arrant)
)he $eserve Bank o! #ndia %$B#& approved the scheme o! amalgamation o!
Centurion Bank o! 7unBab with your Bank e!!ective *ay 34, 355E' Conse<uently,
the shareholders o! the erstwhile Centurion Bank o! 7unBab were allotted
99,EE4,9:9 e<uity shares o! $s' 15 each pursuant to the share swap ratio o! one
e<uity share o! $s' 15 each o! HDFC Bank !or every twenty nine e<uity shares o!
$e' 1 each held in Centurion Bank o! 7unBab by them as on =une 19, 355E' )o
enable the promoter group to restore its shareholding percentage in the Bank to the
39
pre6merger level and in line with shareholder and regulatory approvals, during the
<uarter
GRO/TH ,5D (RESE5T ST,T4S OF THE I5D4STRY: 6
Currently %3559&, banking in #ndia is generally !airly mature in terms o! supply,
product range and reach6even though reach in rural #ndia still remains a challenge
!or the private sector and !oreign banks' #n terms o! <uality o! assets and capital
ade<uacy, #ndian banks are considered to have clean, strong and transparent
balance sheets relative to other banks in comparable economies in its region' )he
$eserve Bank o! #ndia is an autonomous body, with minimal pressure !rom the
government' )he stated policy o! the Bank on the #ndian $upee is to manage
volatility but without any !iIed eIchange rate6and this has mostly been true'
1ith the growth in the #ndian economy eIpected to be strong !or <uite some time6
especially in its services sector6the demand !or banking services, especially retai)
*an+ing, mortgages and investment services are eIpected to be strong' 2ne may
also eIpect *>-s, takeovers, and asset sales'
#n *arch 3559, the $eserve Bank o! #ndia allowed 1arburg 7incus to increase its
stake in /otak *ahindra Bank %a private sector bank& to 158' )his is the !irst time
an investor has been allowed to hold more than :8 in a private sector bank since
3;
the $B# announced norms in 355: that any stake eIceeding :8 in the private
sector banks would need to be vetted by them'
Currently, #ndia has EE scheduled commercial banks %+CBs& 6 3; public sector
banks %that is with the ,overnment of India holding a stake&a!ter merger o! .ew
Bank o! #ndia in 7unBab .ational Bank in 1994, 39 private banks %these do not
have government stakeL they may be publicly listed and traded on stock
eIchanges& and 41 !oreign banks' )hey have a combined network o! over :4,555
branches and 1;,555 '-Ms' -ccording to a report by #C$- Limited, a rating
agency, the public sector banks hold over ;: percent o! total assets o! the banking
industry, with the private and !oreign banks holding 1E'38 and 9':8 respectively
#ntroduction o! many more products and !acilities in the banking sector in its
re!orms measure' #n 1991, under the chairmanship o! * .arasimham, a committee
was set up by his name which worked !or the liberali"ation o! banking practices'
)he country is !looded with !oreign banks and their -)* stations' ?!!orts are
being put to give a satis!actory service to customers' 7hone banking and net
banking is introduced' )he entire system became more convenient and swi!t' )ime
is given more importance than money'
In "../0 t&e 1roo+ings Institution pu*)is&ed a paper entit)ed 2-&e -ransformation
of t&e 3!S! 1an+ing Industr45 6&at a Long0 Strange -rip It7s 1een!8 3sing a
*reat&ta+ing arra4 of facts and figures0 t&e paper descri*ed in great detai) t&e
3E
dramatic c&anges t&at &ad occurred in t&e 3!S! commercia) *an+ing industr4 over
t&e "/ 4ears from ".. to "..9! -&e *an+ing industr4 was transformed during
t&at period0 according to t&e paper (p! "2%0 *4 2t&e massive reduction in t&e
num*er of *an+ing organi:ations; t&e significant increase in t&e num*er of
fai)ures; t&e dramatic rise in off<*a)ance s&eet activities; t&e ma=or expansion in
)ending to 3!S! corporations *4 foreign *an+s; t&e widespread adoption of
'-Ms; ! ! ! and t&e opening up of interstate *an+ing mar+ets!8 -&e paper went on
to exp)ain t&at most of t&ese ma=or c&anges in *an+ing cou)d *e traced to two
deve)opments5 ("% t&e extraordinar4 num*er of ma=or regu)ator4 c&anges during
t&e period0 from deposit deregu)ation in t&e ear)4 ".$#s to t&e re)axation of
*ranc&ing restrictions )ater in t&e decade; and (2% c)ear)4 identifia*)e innovations
in tec&no)og4 and app)ied finance0 inc)uding improvements in information
processing and te)ecommunication tec&no)ogies0 t&e securiti:ation and sa)e of
*an+ )oans0 and t&e deve)opment of derivatives mar+ets! >t&er researc& wou)d
)ater confirm t&e paper7s assessments and its exp)anation of t&e course of events
in t&e *an+ing industr4 over t&e period "..?"..9!
39
2ver the two decades 19ER3554, the structure o! the D'+' banking industry
indeed underwent an almost unprecedented trans!ormationSone marked by a
substantial decline in the number o! commercial banks and savings institutions and
by a growing concentration o! industry assets among a !ew do"en eItremely large
!inancial institutions' )his is not news' -s mentioned above, the decline in the
number o! banking organi"ations has been ongoing !or more than two decades and
has been well documented in the literature'
4
.evertheless, a brie! overview will
serve to clari!y both the scope o! the decline and the increasing concentration o!
assets among the nationKs largest banking organi"ations
45
-t year6end 19E, there were 1:,5E banking and thri!t organi"ations %de!ined as
commercial bank and thri!t holding companies, independent banks, and
independent thri!ts&' By year6end 3554, that number had !allen to ;,E3Sa
decline o! almost E percent %!igure 1&' Distributed by si"e, nearly all the decline
occurred in the community bank sector %organi"ations with less than T1 billion in
assets in 3553 dollars&, and especially among the smallest si"e group %less than
T155 million in assets in 3553 dollars&' Jet the community banking sector still
accounts !or 9 percent o! banking organi"ations
41
PRODUCTS & SERVICES
43
(ROD4-TS = SER:I-ES OF HDF
(rod*1t and )ervi1e profile of the organization:+
HDFC Bank o!!ers a bunch o! products and services to meet the every need o! the
people' )he company cares !or both, individuals as well as corporate and small
and medium enterprises' For individuals, the company has a range accounts,
investment, and pension scheme, di!!erent types o! loans and cards that assist the
customers' )he customers can choose the suitable one !rom a range o! products
which will suit their li!e6stage and needs' For organi"ations the company has a
host o! customi"ed solutions that range !rom Funded services, .on6!unded
services, Aalue addition services, *utual !und etc' )hese a!!ordable plans apart
!rom providing long term value to the employees help in enhancing
,oodwill o! the company' )he products o! the company are categori"ed into
various sections which are as !ollows0
(er)onal Ban>ing
Saving) ,11o*nt)
Salar2 ,11o*nt)
Saving ,11o*nt)
Fi.ed Depo)it)
44
Demat ,11o*nt
Safe Depo)it 3o1>er)
3oan)
-redit -ard)
De0it -ard)
(repaid -ard)
Inve)tment) = In)*ran1e
Fore. Servi1e)
(a2ment Servi1e)
5et Ban>ing
In)ta,lert)
6o0ile Ban>ing
In)taC*er2
,T6
(hone Ban>ing
5RI Ban>ing
R*pee Saving) ,11o*nt)
R*pee Saving ,11o*nt)
R*pee Fi.ed Depo)it)
Foreign -*rren12 Depo)it)
,11o*nt) for Ret*rning Indian)
C*i1> remit ;5orth ,meri1aA 48A E*ropeA So*thea)t ,)ia<
4
India 3in> ;6iddle Ea)tA ,fri1a<
-oeB*al 3o1> Bo.
#n todayKs world many companies have emerged who have taken a serious note on
the importance o! market research and he advantages o! using it !or the better
growth and development o! the company' Hence, our competitors are those
companyKs who are in the market research and development !ield as well as the
consultancies, since they also make use o! market research and business
developers'
THE (ROD4-TS ,5D B,58 OF O4R -O6(ETITORS ,RE ,S
FO33O/S:
,# -*)tomer Sati)fa1tion ,nal2)i) :
Customer analysis involves gathering data about the customers and their
characteristics' )hey also conduct tailored customer satis!action surveys to gau"e
customer satis!action'
4:
B# Ri)>
)hese B-./ are used by the competitors in order to gather eIternal in!ormation
and research the possible e!!ect on the competitiveness o! company'
-# (rod*1t Re)ear1h B,58:
)he conduction o! eItensive product research by this service helps the competitors
to !ind out the marketability o! a product or service' )he research can be utili"ed to
leverage the maBor decisions o! a company on the marketing o! its products'
D# ,dverti)ing Re)ear1h B,58:
-dvertising research strives to gain valuable in!ormation about the e!!ects and
reach o! advertising the products in di!!erent !orms o! media'
Given 0elow are the )tep) we follow for ever2 a))ignment we ta>e *p:
49
1' )he timetable !or the search is indicated and the search process commences'
3' )arget companies are eIamined, using any prior in!ormation provided by
business development eIecutives in conBunction with sources o! in!ormation and
prospective companies already known to us, augmented with original study by our
search team'
4' 1e maintain a regular channel o! communication with the client to keep them
apprised o! the results emerging'
6,R8ET (ROFI3E OF THE ORG,5I7,TIO5:+
HDFC Bank Limited provides various !inancial products and services' #t operates
in three segments0 $etail Banking, 1holesale Banking, and )reasury' )he $etail
Banking segment provides various deposit products, including savings accounts,
current accounts, !iIed deposits, and demat accounts' #t also o!!ers auto, personal,
commercial vehicle, home, gold, and educational loansL loans against securities,
property, and rental receivablesL and health care !inance working capital !inance,
construction e<uipment !inance, and warehouse receipt loans, as well as credit
4;
cards, debit cards, depository, investment advisory, bill payments, and
transactional services' #n addition, this segment sells third party !inancial products,
such as mutual !unds and insurance, as well as distributes li!e and general
insurance products through its tie6ups with insurance companies and mutual !und
houses' )he wholesale banking segment provides loans, non6!und !acilities, and
transaction services to large corporate, emerging corporate, small and medium
enterprise, supply chain, public sector undertaking, central and state government
departments, and institutional customers' #t o!!ers deposit and transaction banking
products, supply chain !inancing, working capital and term !inance, agricultural
loans, and !unded, non6!unded treasury, and !oreign eIchange products' )hese
segments services include trade services, cash management, money market,
custodial, taI collection, and electronic banking' #n addition, it provides
correspondent bank services to co6operative banks, private banks, !oreign banks,
and regional rural banksL and wealth management products !or non6resident
#ndians' )he )reasury +ervices segment operates primarily in areas, such as
!oreign eIchange, money market, interest rate trading, and e<uities' -s o! *arch
41, 3559, HDFC Bank had a network o! 1,13 branches and 4,39: automated
teller machines in :3E cities in #ndia' )he company was !ounded in 199 and is
based in *umbai, #ndia'
#n todayKs growing world everyone needs to diversi!y their business so as to keep
in touch with the rapid development' By analy"ing the growing concerns o! the
4E
market, HDFC has clients varying !rom investment banking sector, retail, web
designing companies, etc' Due to this rapid development HDFC ,roup has many
teams working !or the above mentioned sectors
49
PROBLEMS AND
FUTURES OF HDFC
BANK
5
(ROB3E6S OF ORG,5IS,TIO5
-ny event comes with two things' like that there is a head then tail also 'there is a
dark then light also as like i! there is an opportunity with an organi"ation to grow
there is a some barrier which create a wall in its way 'these barrier may be within
or outside the organi"ation which is as !ollows6
;< (ROB3E6 S /ITH I5 THE ORG,5IS,TIO5+
-' +ome gaps in range !or certain sectors'
B' Customer service sta!! need training'
C' *anagement cover insu!!icient processes and systems, etc
D' +cectoral growth is constrained by low unemployment levels and
competition !or sta!!'
1
F4T4RE OF HDF- B,58:+
)he burden o! reporting and other regulatory re<uirements will !all heavily and
disproportionately on small banks unless remedial action is taken' Further
advances in in!ormation technology will permit the development o! new products,
B-./, and risk6management techni<ues but may also pose important competitive
and supervisory issues' .onbank entities will continue to 2!!er bank6like products
in competition with banks, raising anew the <uestion o! whether banks are still
PspecialQ and, more !undamentally ,whether banks are su!!iciently di!!erent !rom
nonblank !irms to Busti!y the maintenance o! a sa!ety net !or banks' #t is use!ul,
there!ore, to try to chart the course o! the banking industry in the neIt !ive to ten
years and to consider what policy issues the industry and regulators will !ace' )he
authors o! this study do not pretend to be clairvoyant' )hey are mind!ul o! the
many !inancial predictions that were once o!!ered with con!idence but turned out
to be wrong or premature' )his study is perhaps best described as an eIercise in
strategic thinking' #ts approach is to analy"e what has happened in the recent past,
consider in detail reasons !or eIpecting recent trends to continue or to change, and
draw the conse<uences !or bank and regulatory policies' -s always, uncertainties
abound, and ?vents that may now appear !airly improbable may in !act shape the
!uture' )his paper closes with a discussion o! a number o! such possible events'
)he !uture6o!6banking study addresses three broad <uestions0
3
1' 1hat changes in the environment !acing banking can be eIpected in the
neIt !ive to ten yearsU
3' 1hat are the prospects !or di!!erent sectors o! the banking industry in this
anticipated environmentU Because the banking industry is not monolithic and
di!!erent segments o! the industry have, to some degree, di!!erent opportunities
and vulnerabilities, the study considers separately the prospects !or large, compleI
banking organi"ationsL regional and other midsi"e banksL community banksL and
limited6purpose banks'
4' 1hat policy issues are the industry and regulators likely to !ace in the years
aheadU +eparate consideration is given to
4
OBJECTIVE OF STUDY