Description
Until the early 1990’s the role of financial system was primarily restricted to the function of channelizing resources from surplus to deficit sectors.
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HDFC BANK
Until the early 1990’s the role of financial system was primarily restricted to the function
of channelizing resources from surplus to deficit sectors. Although 14 major commercial
bans were nationalized in !uly 19"9# regional rural bans were set up in 19$% and
another si& commercial bans were nationalized in 19'0# the baning sector in (ndia
suffered form lac of competition# low capital base# low producti)ity# minimal role of
technology# wea prudential standards and low *uality of ser)ice. As a result# bans
suffered from poor asset *uality and low profitability and bans functioned in an
o)erprotected en)ironment. +herefore# when economic reforms were introduced in
)arious sectors of the economy in 1991 under the ,ew -conomic .olicy# se)eral reforms
were introduced in the baning sector also.
/ubse*uent to the 0eport of the 1ommittee on 2inancial /ystem# 1993
41hairman5 6. ,arasimham7 reforms in the baning sector focused mainly on enabling8
and strengthening measures. 9uring the second phase of reforms in the baning sector#
which were introduced on the recommendations of the 1ommittee on :aning /ector
0eforms# 199' 41hairman5 6. ,arasimham7 greater stress was placed on structural
measures and impro)ement standards of disclosure and le)els of transparency# so as to
align (ndian standards with best international practices. As a conse*uence of the )arious
measures undertaen by the go)ernment# we find that an e&tensi)e baning networ has
been established# bans ha)e contributed a lot to increase in sa)ings and (ndian :aning
/ystem is no longer confined to metropolitan cities and large towns but it is spread out to
remote corner of the country. ;ith a networ of about "'#<<0 branches# of which 4$= are
located in rural areas and aggregate deposits of about 0s. 13#'0#%"$ crores and ban
credit of 0s. $#3%#<"' crores# (ndian baning is one of the largest# if not the largest# in the
world. 9uring the last decade# both the nationalized bans and the pri)ate sector bans
ha)e grown but pri)ate sector bans ha)e shown a much better standard in terms of
different baning parameters. >921 :an is one such ban# which has shown
tremendous progress.
8 -nabling measures were designed to create an en)ironment where financial intermediaries could respond optimally to
maret signals on the basis of commercial consideration
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HDFC BANK – A HISTORICAL
PRELUDE
>921 :an has been promoted by the >ousing 9e)elopment 2inance 1orporation#
which is (ndia’s premier >ousing 2inance 1ompany and has a sound trac record. /ince
its inception in 19$$# >921 has maintained a consistent and healthy growth in its
operations which is e)idenced by the fact that its loan appro)als ? sanctions and loan
disbursements ha)e been increasing year after year. +he outstanding housing loans of the
>921 ha)e increased from 0s. 39.' crores as on <1
st
6arch 19'1 to 0s. 1#$3".9 crores at
the end of 6arch 1991# to 0s. 1<#334.$ crores at the end of 6arch 3001 and further to 0s.
1$#1"9.3 crores at the end of 6arch 3003. +he corporation continues to remain a maret
leader and its loan portfolio co)ers more than a million dwelling units. >921 has
de)eloped significant e&pertise in retail mortgage loans for different maret segments#
has a large corporate client base and has a sound maret reputation. ,aturally# >921 was
ideally placed to promote a ban in the (ndian en)ironment.
Under the liberalization measures adopted under the ,ew -conomic .olicy#
impro)ement in the efficiency of financial intermediaries has been at the core of the
reform process. (n order to pro)ide greater choice to customers and promote competitions
the 0eser)e :an of (ndia permitted the entry of new pri)ate bans and more liberal
entry of foreign bans. +he >921 was amongst the first to recei)e in principle the
appro)al of the 0
to set up a ban in the pri)ate sector. +herefore# >921 :an @td.
was incorporated in August 1994 with its registered office in 6umbai. +his ban
commenced its operation as a scheduled commercial ban in !anuary 199%. /ince its
inceptions# the >921 :an has been able to achie)e healthy growth across )arious
operating and financial parameters and has focused on four core )alues5
Customer focus, Operational excellence, Product leadership and the people. (t has tried
to fulfill these )alues through open and transparent wor culture# pro)iding opportunities
to tae on challenging assignments and empowering its employees to tae decisions.
An important e)ent too place which added significant )alue to the >921 :an
in terms of increased branch networ# enhanced customer base# silled manpower and
le)erage alternati)e deli)ery channels. +his e)ent was the amalgamation of +imes :an
@imited 4.romoted by :ennett 1oleman and 1ompany ? +imes Aroup7 with the >921
:an @td with effect from 2ebruary 3"# 3000. According to the scheme of amalgamation#
shareholders of +imes :an recei)ed one share of >921 :an for e)ery %.$% shares of
+imes ban.
After the merger of the +imes ban with >921 :an# the >921 :an has been
e&panding its networ with passage of time.
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CAPITAL STRUCTURE
+he authorized capital of >921 :an is 0s.4%0 crores 40s.4.% billion7. +he paidBup
capital is 0s.<11.9 crores 40s.<.1 billion7 as at <1
st
6arch 300". +he >921 Aroup holds
33.1= of the banCs e*uity# 2oreign (nstitutional
estors 42((s7 roughly holds <1.<=
and about 19.4= of the e*uity by the American 9epository /hares 4in respect of the
banCs American 9epository /hares issue7. +he 2(( holders include /tandard life
estment 44.3$=7# (ndian .ri)ate -*uity 2und 41.%'=7 and /mall 1ap ;orld 2und
44=7 and !.. 6organ has a stae of %.4'=. +he balance amount of the ban is held by
about 190#000 shareholders. +he shares of the >921 :an are listed on both 6umbai
/toc -&change 4:/-7 and at the ,ational /toc -&change 4,/-7. +he banCs American
9epository /hares are listed on the ,ew Dor /toc -&change 4,D/-7 under the symbol
E>9:E.
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DISTRIBUTION NETWORK
>921 :an is head*uartered in 6umbai. +he :an at present has an en)iable networ
of o)er %<% branches spread o)er 33' cities against 49% branches in 31$ cities in !une
300% across (ndia. All branches are lined on an online realBtime basis. 1ustomers in o)er
1'9 locations are also ser)iced through .hone :aning.
+he :anCs e&pansion plans tae into account the need
to ha)e a presence in all major industrial and
commercial centres where its corporate customers are
located as well as the need to build a strong retail
customer base for both deposits and loan products.
:eing a clearing ? settlement ban to )arious leading
stoc e&changes# the :an has branches in the centres
where the ,/- ? :/- ha)e a strong and acti)e member base.
+he :an also has a networ of about o)er
1<3<Bnetwored A+6s across these cities. 6oreo)er#
>921 :anCs A+6 networ can be accessed by all
domestic and international Fisa ? 6aster1ard# Fisa
-lectron ? 6aestro# .lus ? 1irrus and American
-&press 1redit ? 1harge cardholders.
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BRANCH NETWORK – CITIES COVERED
1". 1oimbatore %4. .atiala
1$. 9ahej %%. .hagwara
1'. 9aman %". .onda
19. 9elhi %$. .une
30. 2aridabad %'. 0aipur
31. Ahaziabad %9. 0ajot
33. Aurgaon "0. 0ajpura
3<. >yderabad "1. 0anchi
34. (ndore "3. 0opar
3%. !aipur "<. /ecunderabad
3". !allunder "4. /iliguri
3$. !amshedpur "%. /il)assa
3'. !odhpur "". /urat
39. Ganpur "$. +hane
<0. Gapurthala "'. +richur
<1. Garad "9. +richy
<3. Ghanna $0. +ri)andrum
<<. Golhapur $1. Udaipur
<4. Golata $3. Fasai
<%. Gota $<. Fasco
<". Gottayum $4. Fijayawada
<$. @ucnow $%. Firar
<'. @udhiana $". Fishaapatnam
$$. Hirapur
1. Agra <9. 6adurai
3. Ahmedabad 40. 6angalore
<. Ambala 41. 6argao
4. Amritsar 43. 6ohali
%. Aurangabad 4<. 6umbai
". :angalore 44. 6ysore
$. :aroda 4%. ,agpur
'. :haruch 4". ,ashi
9. :ha)nagar 4$. ,a)i 6umbai
10. :hopal 4'. ,a)sari
11. :hubaneshwar 49. ,oida
13. 1alicut %0. .allaad
1<. 1handigarh %1. .anchula
14. 1hennai %3. .anjim
1%. 1ochin %<. .atalganga
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ORGANIZATIONAL
STRUCTURE
General Information:
,ame of the organization 5 >921 :an @td.
Dear of -stablishment 5 August 1994
1hairman 5 6r. !agdish 1apoor
6anaging 9irector 5 6r. Aditya .uri
6ain /er)ice 5 :aning related ser)ice
0egistered Iffice 5 >921 :an >ouse
/enepati :apat 6arg#
@ower .arel#
6umbai J 400 01<
+el5 033 ""%3 1000
;ebsite 5 www.hdfcban.com
0e)enue 5 0s. <#""9.'3 @acs
,o. of 1ustomers of >921 :an 5 9.% 6illion
CHAIRMAN
MANAGING
DIRECTOR
GROUP
HEADS
BUSINESS
HEADS
DIRECTORS
(9)
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HDFC Bank Senior Management Team
Aroup >eads
A 0ajan Operations
Abhay Aima Equities Pri!ate Ban"in#
Ashish .arthasarthy Tra$in#
:harat /hah Depositor% Mer&'ant ser!i&es
1 , 0am In(or)ation Te&'no*o#%
A /ubhramaniam Au$it+ Co)p*ian&e+ Ser!i&e ,ua*it%
>arish -ngineer -'o*esa*e Ban"in#
Gaizad :arucha Cre$it Mar"et Ris"
6andeep 6aitra Hu)an Resour&es
.aresh /uhthanar Cre$it Mar"et Ris" HR
.ralay 6ondal Unse&ure$ Pro$u&ts
/amir :hatia Corporate Ban"in#
/udhir !oshi Treasur%
Finod Dennemadi .inan&e+ A$)inistration+ /e#a*
:usiness >eads
Ashima :hatt SCM ECG
Asho Ghanna T0o -'ee*ers E1press /oans
:ha)esh Ha)eri TBG Operations
1hitra .andeya /ia2i*ities Pro$u&t Group
A F Aopalarishnan In(or)ation Te&'no*o#%
!immy +ata Corporate Ban"in# 3 -est
6amta 1hhabra Treasur% A$!isor% Group
6ana)jeet /ingh Auto+ Co))er&ia* Transportation
Hea*t' Care
, / Gishore Gumar Corporate Ban"in# 3 Sout'
,a)in .uri Bran&' Ban"in# 3 -est
,eena /ingh Bran&' Ban"in# 4 Nort' 5
,itin 0ao Equities Pri!ate Ban"in#
. 0a)indranath .ai Treasur%
. F Anantharishnan Sto&" E1&'an#e+ Correspon$in# Ban"in#
0ahul :hagal Bran&' Sa*es+ HN-+ P'one Ban"in#
Mar"et
0ajendra /eghal Corporate Ban"in# 4 Nort'
/ashi !agdishan .inan&e A$)inistration
/eshan 0amarishnan Bran&' Ban"in# 4 Nort' 6
/hyamal /a&ena Bran&' Ban"in# 4 Nort'+ Sout' East
/urindra /ingh 1hawla Bran&' Ban"in# 3 Sout'
F 1harapani Au$it
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MANAGEMENT STYLE
C'air)an7 Mr8 9a#$is' Capoor Mana#in# Dire&tor7 Mr8 A$it%a Puri
6r. !agdish 1apoor too o)er as the banCs 1hairman in !uly 3001. .rior to this# 6r.
1apoor was a 9eputy Ao)ernor of the 0eser)e :an of (ndia.
+he 6anaging 9irector# 6r. Aditya .uri# has been a professional baner for o)er
3% years and before joining >921 :an in 1994 was heading 1itibanCs operations in
6alaysia.
+he :anCs
ard of 9irectors is composed of eminent indi)iduals with a wealth
of e&perience in public policy# administration# industry and commercial baning. /enior
e&ecuti)es representing >921 are also on theard.
/enior baning professionals with substantial e&perience in (ndia and abroad head
)arious businesses and functions and report to the 6anaging 9irector. Ai)en the
professional e&pertise of the management team and the o)erall focus on recruiting and
retaining the best talent in the industry# the ban belie)es that its people are a significant
competiti)e strength.
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MISSION AND BUSINESS
STRATEGY
>921 :an’s mission is to be :a -or*$ C*ass In$ian Ban";# benchmaring oursel)es
against international standards and best practices in terms of product offerings#
technology# ser)ice le)els# ris management and audit K compliance. +he objecti)e is to
sound customer franchises across distinct businesses so as to be a preferred pro)ider of
baning ser)ices for target retail and wholesale customer segments# and to achie)e a
healthy growth in profitability# consistent with the :an’s ris appetite. +he ban is
committed to do this while ensuring the highest le)els of ethical standards# professional
integrity# corporate go)ernance and regulatory compliance. >921 ban’s business
philosophy is based on four core )alues J Iperational -&cellence# 1ustomer 2ocus#
.roduct @eadership and .eople.
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HDFC Bank’s business strategy emphasizes the following:
? (ncrease our maret share in (ndia’s e&panding baning and financial ser)ices
industry by following a disciplined growth strategy focusing on balancing *uality
and *uantity and on deli)ering high *uality customer ser)icesL
? @e)erage our technology platform and open scaleable systems to deli)er more
products to more customers and to control operating costsL
? 6aintain high standards of asset *uality through disciplined credit ris
managementL
? 9e)elop inno)ati)e products and ser)ices that attract our targeted customers and
address inefficiencies in the (ndian financial sectorL
? 1ontinue to de)elop products and ser)ices that reduce our cost of fundsL
? 2ocus on high earnings growth with low )olatility.
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TECHNOLOGY
>921 :an operates in a highly automated en)ironment in terms of information
technology and communication systems. +he strength of a ban is judged by its
infrastructure and its processes. At >921 :an# in)estments ha)e been made right from
inception# to create a robust technology platform i.e. seamlessly integrated with
centralized and audited processes. +his has enabled the >921 :an to e&pand rapidly
and grew many folds while maintaining acceptable ser)ice standards. ;ellBdocumented
procedures# high le)els of automation# intensi)e training of personnel ha)e enabled the
ban to impro)e the reliability of its operational processes. (/I 9003 certifications of its
cash management# retail centralized processing and custody and depository operations are
indicati)e of the ban’s achie)ement in this regard.
+he :an has made substantial efforts and in)estments in ac*uiring the best
technology a)ailable internationally# to build the infrastructure for a worldBclass ban. (n
terms of software# the 1orporate :aning business is supported by 2le&cube# while the
0etail :aning business by 2inware# both from iBfle& /olutions @td. +he systems are
open# scaleable and webBenabled. +he technology adopted at the >921 ban has also
enabled it to offer inno)ati)e products and ser)ices with greater con)enience and at an
affordable price. (t has offered products to match the needs of e)ery customer J corporate
or indi)idual# borrower or in)estor. All the banCs branches ha)e online connecti)ity#
which enables the ban to offer speedy funds transfer facilities to its customers. 6ultiB
branch access is also pro)ided to retail customers through the branch networ. +he ban
maes a)ailable more than 40 products to ser)e the needs of its growing customers. +heir
customers ha)e access to their accounts as and when they need it through the internet#
mobile# Automated +eller 6achines 4A+6s7# .hone baning# 9ebit card and through
personal )isit into a branch. Almost '0= of customers are ser)iced through the nonB
branch channels J A+6s# .hone baning# ,et baning and 6obile baning. :ans A+6
networ had e&panded to 1<3< by the end of 6arch# 300".
+he :an has prioritized its engagement in technology and the internet as one of
its ey goals and has already made significant progress in webBenabling its core
businesses. (n each of its businesses# the :an has succeeded in le)eraging its maret
position# e&pertise and technology to create a competiti)e ad)antage and build maret
share. ;ith this significant infrastructure e&pansion# the ban’s customers ha)e e)en
greater con)enience and choice in dealing with the ban J !ny time" any where" any
how#.
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RISK MANAGEMENT &
PORTFOLIO QUALITY
0is is integral to almost e)ery aspect of the baning business and sound ris
management and ris J rewards trade offs are critical to the ban’s success. (t is well
accepted that re)enues that ban earn# relate to a large e&tent to the riss the ban accept.
:usiness and re)enue growth therefore# ha)e to be weighed in the conte&t of the riss
implicit in the ban’s business strategy. ;hile the ban is e&posed to )arious types of
ris# the most important amongst them are credit ris# maret ris 4which includes
li*uidity ris and price ris7 and operational ris. +he identification# measurement#
monitoring and management of riss remain a ey focus area for the ban. 2or credit ris#
distinct policies and processes are in place for the wholesale and retail asset businesses.
2or wholesale credit e&posures# management of credit ris is done through target maret
definition# appropriate credit appro)al processes# ongoing postBdisbursement monitoring
and remedial management procedures. In the other hand .ortfolio di)ersification
remains ey# particularly gi)en the )olatility in the business en)ironment and facilitates
ris management. (n the retail asset businesses# the credit cycle is managed through credit
policy definition# appropriate frontBend credit buying# operations and collection processes
enable the management of ris on a portfolio basis for different products and customers
segments.
+he 0is monitoring 1ommittee of the board monitors the ban’s ris
management policies and procedures and re)iews portfolio composition and impaired
credits. 2rom an industry
concentration perspecti)e# as
of march <1# 300"# the core
retail portfolio constituted
41.<= of total customer
assets. +he large industry
e&posures included the share
of automobiles at 10.$=#
transportation at 9."=#
agriculture at <.0= hea)y
engineering at <.4= and
in)estment companies at 3.$=
of customer assets.
40s. @acs7
Aross
@oans
= to
Aross
@oans
0etails J -&cept where otherwise
classified 1%'$'9' 41.<=
Automobiles 409$0< 10.$=
+ransportation <"'41" 9."=
0etail +rade 14<%$< <.$=
-ngineering 1390$3 <.4=
Agriculture 11%%9$ <.0=
,:218 ?estment 1ompanies 104<0< 3.$=
Ithers M 3= of Ad)ances
439 industries7 9'3"9% 3%."=
Tota* <=>65?@ 6AA8AB
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8 ,:215 ,on :aning 2inancial 1ompanies
+he wellBdi)ersified nature of the portfolio is e)idenced by the fact that 39 industries
account for 3= or less of the ban’s customer asset portfolio. As of 6arch <1# 300"# the
ban’s ratio of gross nonBperforming assets 4,.As7 to total customer assets was 1.1$= as
against 1.4$= as of 6arch <1# 300% and 1.%0= at the end of 6arch 3004.
+here has been an increase in nonBperforming assets8 4,.As7 in absolute terms
during the year. (ncreases in ,.As during the year were primarily related to
delin*uencies in )arious retail loan products. +hese delin*uencies and ,.As were within
the e&pected le)els for each of the retail asset products gi)en the seasoning of the retail
portfolio. ,et nonBperforming assets 4gross nonBperforming assets less specific loan loss
pro)isions# interest in suspense and -1A1 claims recei)ed7 were 0.44= of net ad)ances
and 0.<"= of customer assets as of 6arch <1# 300" as against 0.34= and 0.30=
respecti)ely as of march <1# 300% reflecting the higher proportion of retail loans in the
ban’s loan boo and the changing mi& of the retail loan portfolio.
+he ban continues to ha)e a policy of creating general pro)isions upfront based
on estimated portfolio losses for its major retail loan product programs against which
specific pro)isions are setBoff as the portfolio ages and ,.As surface. As on 6arch <1#
300"# total general loan loss pro)isions were 0.%= of the standard ad)ances which was
abo)e the regulatory re*uirement. +owards meeting the re*uirements# the :an launched
a suite of new credit ris rating models during the year for rating entities specific to each
segment in wholesale credit. +o automate the entire computation process for credit under
)arious approaches# the :an is currently implementing a .ortfolio 1redit 0is
6anagement 4.1067 model.
NNNNNNNNNNNNNNNNNNNNNNNNNN
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8 According to the guidelines of 0# a nonBperforming asset 4,.A7 is one in respect of which the interest and ? or
installment of principal has remained due for o)er 90 days.
HUMAN RESOURCES
Ai)en the :an’s significant e&pansion in terms of geographical area as well as in terms
of products and business )olumes# the :an’s staffingBneeds continued to increase during
the year particularly in the retail baning businesses. (n addition# changes in regulatory
guidelines necessitated additions to the staff in respect of sales function for liability
products. /imultaneously# the total number of employees increased from %"$< as of
6arch <1# 3004 to 90<0 as of 6arch 300% to 14'$' as of 6arch <1# 300". +he :an
continues to focus on training its employees on a continuing basis# both on the job and
through training programs conducted by internal and e&ternal faculty. +he :an has
consistently belie)ed that broader employee ownership of its shares has a positi)e impact
on its performance and employee moti)ation. +he :an’s employee stoc option scheme
therefore e&tends to all le)els and so far co)ers around %9= of the employees.
.
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SEGMENTATION
INFORMATION
+he :an operates in three segments5 $etail Banking" %holesale Banking an& Treasury
Ser'i(es. /egments ha)e been identified and reported taen into account# the target
customer profile# the nature of products and ser)ices# the differing riss and returns# the
organization structure and the internal business reporting systems.
+he $etail Banking Segment ser)es retail customers through a branch networ
and other deli)ery channels. +his segment raises deposits from customers and maes
loans and pro)ides ad)isory ser)ices to such customers. 0e)enues of the retail baning
segment are from interest earned on retail loans# net of commission 4net of sub)ention
recei)ed7 paid to sales agents# interest on card recei)ables# gains ? loans from
securitization recei)ables# fees for baning and ad)isory ser)ices and interest earned from
other segments for surplus funds placed with those segments. -&penses of this segment
primarily comprise interest e&pense on deposits# infrastructure and premises e&penses for
operating the branch networ and other deli)ery channels# personnel costs# other direct
o)erheads and allocated e&penses.
+he %holesale Banking Segment pro)ides loans and transaction ser)ices to
corporate and institutional customers. 0e)enues of the wholesale baning segment
consist of interest earned on loans made to corporate customers and the corporate supply
chain customers# in)estment income from commercial paper# debentures and bonds#
interest earned on the cash float arising from transaction ser)ices# fees from such
transaction ser)ices and also trading operations on behalf of corporate customers in debt#
foreign e&change and deri)ati)es segment. +he principal e&penses of the segment consist
of interest e&pense on funds borrowed from e&ternal sources and other internal segments#
premises e&penses# personnel costs# other direct o)erheads and allocated e&penses.
+he Treasury Ser'i(es Segment undertaes trading operations on the proprietary
account# foreign e&change operations and deri)ati)es trading. 0e)enues of the treasury
ser)ices segment primarily consist of fees and gains or losses from trading operations and
net interest earnings on assets held in the treasury des boo.
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+he summary in form of financial report of the three operating segments of the
:an is as follows5
40s. @acs7
Parti&u*ars 5AA?3AC 5AA>3A?
1. Segment $e'enue
a7 0etail :aning %#1$<#'4 <#%<"#3$
b7 ;holesale :aning 3#'%<#<' 3#0%"#<%
c7 +reasury $$<#'9 3'"#'9
Parti&u*ars 5AA?3AC 5AA>3A?
Tota* '#'01#11 %#'$9#%1
@ess5 (nter /egment 0e)enue <#301#$9 3#1<4#"'
In&o)e (ro) operations ?+?99+<5 <+@>>+C=
3. Segment $esults
a7 0etail :aning $01#"$ %30#"4
b7 ;holesale :aning %<$#'$ %<9#<"
c7 +reasury 1<#9$ 4'1#0"7
Tota* Pro(it Be(ore Ta1 1#3%<#%1 9$'#"4
(ncome +a& -&pense 4<'3#$<7 4<1<#<'7
Tota* Resu*t =@A+@= CC?+?C
<. 1apital -mployed
/egment Assets
a7 0etail :aning <'#%$1#09 34#4"9#9<
b7 ;holesale :aning 3'#$90#%< 34#9"3#<4
c7 +reasury %#$<<#94 1#$%"#0<
d7 Unallocated 410#'< 340#$0
Tota* Assets @<+?AC+<9 ?6+>59+AA
/egment @iabilities
a7 0etail :aning <'#%'4#3% 3$#<"1#4"
b7 ;holesale :aning 3"#$1$#9< 14#9<3#<9
c7 +reasury 3#$0'#33 4#4%%#1"
d7 Unallocated 19"#4" 1"0#14
Tota* /ia2i*ities C=+5AC+=C >C+9A9+6?
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PRODUCTS & MARKET
>921 :an caters to a wide range of baning ser)ices co)ering both commercial and
in)estment baning and has offered different types of accounts and cards to meet the
changing needs of a dynamic and comparati)e economy. Among the di)ersified portfolio
products offered by >921 :an some of the important products offered are5
1. /AF(,A/ A11IU,+
3. 1U00-,+ A11IU,+
<. /A@A0D ? 1I0.I0A+- A11IU,+
4. 2(O-9 9-.I/(+/
a7 0egular 2i&ed 9eposit
b7 /uper /a)er Account
c7 /weepBin Account
%. 9-6A+ A11IU,+
". ,0( A11IU,+
$. @IA,
'. 10-9(+ 1A09/
Apart from this >921 :an also sells third party products lie 6utual 2unds#nds#
(nsurance to its retail customers.
? SADINGS ACCOUNT7
:aning should be effortless. ;ith >921 :an# the efforts are rewarding. ,o
matter what a customerCs need and occupational status# the ban has a range of
solutions that are second to none. >921 :an has the perfect solution and also
can recommend products that can augment planning for the future. /a)ings
Accounts are primarily meant to inculcate a sense of sa)ing for the future#
accumulating funds o)er a period of time. (ndi)idual can open an account in their
name or register for one jointly with a family member. +he :an is offering
)arious types of sa)ings account under the retail baning segment.
1. $egular Sa'ings !((ount:
An easyBtoBoperate sa)ings account that allows issuing che*ues# draw
9emand 9rafts and withdraw cash. +he customer can chec up their own
balances with ease form the home or office through ,et:aning#
.hone:aning and 6obile:aning.
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3. )o Frills# Sa'ings !((ount:
(n an effort to mae baning simpler and more accessible for the customers#
:an has introduced the C,o 2rillsC /a)ings Account# which offers all the basic
baning facilities# while maintaining a nominal a)erage *uarterly balance of
only 0s. 3%0. +hrough this account one can access a wide networ of branches
and o)er a thousand A+6s across the country to meet the baning needs. +his
includes 9 free cash withdrawals per *uarter at >921 branch# 1 cash
withdrawal per month at the branch and 3 cash withdrawals per month at
>921 :an A+6s. Additional branch cash withdrawals in the month will be
charged P 0s.%0?B per transaction. 1he*ue deposits at branches will be free of
charge and without any restrictions. +he facility of (nternational 9ebit 1ard
could be enjoy only on re*uest at the branch# which cost 0s. 100?B p.a. for
each applicant.
<. $etail Trust !((ount:
+he 0etail +rust Account is beneficial for +rusts and /ocieties as it earns them
a higher interest as compared to a con)entional 1urrent Account that offers no
interest. >921 :anCs 0etail +rust now offers features and benefits
pre)iously offered only on 1urrent Accounts.
B -njoy free 99Cs payable on >921 ban locations up to a limit of 0s.
%0#000?B per 99# per day.
B A)ail of free Iutstation 1he*ue 1ollection at >921 :an locations
across the country.
B Access the account from any of the branches in the >921 baning
networ.
B A)ail of facilities lie 2ree 34Bhour .hone :aning and ,et :aning and
carry out baning transactions with ease from home or office.
4. *i&’s !&'antage !((ount:
>921 :an offers to an account for the ids# which facilitates to builds up
sa)ings for child’s future. +his needs to open a id’s ad)antage account and
deposits money into the account e)ery month. +he accumulated sa)ings in the
Gids Ad)antage Account can o)er the years help in meeting the childCs needs.
Ipening the account with >921 :an will co)er 2ree (nternational 9ebit
1ard for the ids 4abo)e $ years of age7 with a ma&imum drawing capability
of 0s. 3#%00?B per day. 2ree -ducation (nsurance co)er of up to 0s. 1#00#000?B
for the child with e)ery Gids Ad)antage Account.
%. +ension Sa'ing Bank !((ount:
A .ension /a)ing Account is a Hero :alance Account that accumulates the
pension o)er the years. (t comes with a free (nternational 9ebit card and
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facilities lie .hone and ,et :aning. +his Account can be accessed from any
branch within the >921 networ and the customer can also re*uest for
transfer to another ban. +he >921 ban pro)ides certain ad)antages to
pension sa)ing account holders lie5
B .ension Accounts are opened immediately after ad)ice# and deli)erables
reach in timeB within the 1st and %th of the new month 4in case of -.2I7 and
last day of the month 4in case of 1entral Ao)t. 1i)il .ensions7.
B ,o delays in commencement of pension disbursals 4subject to all the
stipulated terms?conditions are fulfilled by the pensioner7.
B 9ispatch of credit ad)ice containing detailed calculations of the amount
credited each month within 10 days of the payment.
B +imely intimation of re)isions due to changes in rates of .ension or 9earness
Allowance.
". Family Sa'ing ,roup !((ount:
+he 2amily /a)ings Aroup lins together upto four indi)idual >921 :an
accounts 4same family7 under a single group. All the account holders can tae
the ad)antage of the group A)erage Quarterly :alance 4AQ:7 and can operate
their account freely without worrying about the minimum balance.
? CURRENT ACCOUNT7
;ith an >921 :an 1urrent Account# the indi)idual can e&perience the freedom
of multiBcity baning. +his will enhance the power of multiBlocation access to
current account from any of our %<% branches in 33' cities. ,ot only that# the
account holder can do most of their baning transactions with ease from home or
office without stepping out. +he ban offers a 1urrent Account with all the
benefits that one needs to stay ahead from competition. >921 :an understands
that running a business re*uires time and money and also needs constantly
e)ol)ing. +he :an pro)ides with a choice of 1urrent Account options to
e&clusi)ely suit the ind of business B whate)er the size or scope. +he :an is
offering )arious types of current account under the retail baning segment.
1. +lus Current !((ount:
(n todayCs fastBpaced world# business regularly re*uires to recei)e and send
funds to )arious cities in the country. >921 :an .lus 1urrent Account gi)es
the power of interBcity baning with a single account and access to more than
33' cities. 2rom special che*ues that get treated at par with local ones in any
city where >921 :an has a branchL to free collection of outstation che*ues
4payable at branch locations7L to free interBcity funds transfers of up to 100
lahs# the ban priority ser)ices ha)e become the benchmar for baning
efficiency.
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3. $egular Current !((ount:
A 1urrent account is ideal for carrying out dayBtoBday business transactions.
;ith the >921 :an 0egular 1urrent Account# the account holder can access
their account anytime# anywhere. ;ithdraw and deposit cash# issue and
encash che*ues# mae balanceBin*uiries or as for mini statements# and e)en
re*uest for che*ue boos can be done any time# anywhere. ;ith a )ast
networ of branches in cities all o)er the country# and access to a multitude of
A+6Cs# one can eep trac of all transactions at anytime.
<. Tra&e Current !((ount:
(n todayCs changing business re*uirements# one needs to transfer funds across
cities# and time is of the essence. >921 :an +rade 1urrent Account gi)es
the power of interBcity baning with a single account. 2rom special che*ues
that get treated at par with local ones in any city where >921 :an has a
branchL to free collection of outstation che*ues 4payable at branch locations7L
to free interBcity funds transfers of up to 3% lahs# the ban ser)ices ha)e
become the benchmar for baning efficiency.
4. +remium Current !((ount:
+he business needs a partner who can manage the finance efficiently while
one concentrated on growing his business. +he ban pro)ides with the
benefits of interBcity baning account with .remium 1urrent Account# that
re*uires an a)erage *uarterly balance of only 0s. 3%#000 per *uarter with
.ayableBAtB.ar che*ue boo facility K free interBcity finds transfer across our
networ upto 0s.10 @acs per month.
%. $eimbursement Current !((ount:
A hassleBfree Account that allows the customers to deposit the reimbursements
that recei)es from the company on a monthly basis. +he customer does not
ha)e to maintain a minimum balance with the ban.
". $FC - Domesti( !((ount:
(t is a 0esident 2oreign 1urrency 9omestic Account that manages the
customer’s foreign currency *uite efficiently. +he customer can choose to set
up his own account either in U/ 9ollar# Areat :ritain .ound -uropean -uro.
? SA/ARE F CORPORATE ACCOUNT7
>921 :an offers fi)e inds of salary account to its customer. +hese are as
follows.
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1. Classi( Salary !((ount:
+he 1lassic /alary account is a Hero :alance Account which earns normal
interest on the sa)ings from salary at a competiti)e rate fi&ed by the ban
from time to time. +here is no fee applicable for branch transactions and the
account holder recei)es baning statements once e)ery si& months. +he
account facilitates with free personalized che*ue boos# free A+6 1ard with a
withdrawal limit of up to 0s. 10#000?B per day# free facilities lie ,et :aning#
.hone :aning and 6obile :aning.
3. +ayroll !((ount:
+he >921 :an payroll account offers fle&ibility as well as access to
premium features lie :ill.ay# (nsta Alert at a nominal charge. +he customer
can also access their account anytime by phone or through the (nternet and
pay for their utility bills at a nominal charge.
<. $egular Salary !((ount:
+he 0egular account is a Hero :alance account and comes with a 2ree
(nternational 9ebit 1ard# facilities lie free interBcity?branch baning and /afe
9eposit locers.
4. +remium Salary !((ount:
A powerBpaced account for successful salaried professionals# the .remium
/alary account comes with a free (nternational 9ebit 1ard and addBon 9ebit
card for life# with the option of choosing between a /il)er or Aold credit card
at preferential rates.
%. Defen(e Salary !((ount:
+he account is mainly meant for defence personnel woring with the (ndian
Armed 2orce or (ndian ,a)y. +he account is a zero balance account and
comes with a free (nternational 9ebit 1ard.
? .IGED DEPOSITS7
@ongBterm in)estments form the chun of e)erybodyCs future plans. An alternati)e
way too simply by applying for loans# fi&ed deposits allow to borrow from
customer’s own funds for a limited period# thus fulfilling the needs as well as
eeping the sa)ings secure. +here are three basic types of fi&ed deposits that a
customer can go for it.
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1. $egular Fi.e& Deposit:
In!est %our sa!in#s+ an$ t'en *et t'e) 0or" (or %ou8
(f one belie)es in longBterm in)estments and wish to earn higher interests on
sa)ings# then in)est the money in a 2i&ed 9eposit. :y in)esting in a >921
:an 2i&ed 9eposit# the customer’s money not only stays secure but also
accumulates good interest o)er the period of deposit. .artial withdrawal from
fi&ed deposits before the date of maturity can bail out in times of need.
3. Super Sa'er Fa(ility:
+he customer can enjoy a high rate of interest along with the li*uidity of an
sa)ings account by opting for a /uper /a)er 2acility and a)ail of an o)erdraft
facility of up to $%= of the )alue of fi&ed deposit.
<. Sweep/in Fa(ility:
+he customer can lin the 2i&ed 9eposit with sa)ings or current account and
use it to fall bac on in case of emergencies. A deficit in the sa)ings or current
account is taen care of by using up an e&act )alue from the fi&ed deposit.
/ince deposits are broen down in units of 0e 1?B# the customer will lose
interest only for the actual amount that has been withdrawn.
? DEMAT ACCOUNT7
9ematerialization account is the process by which physical certificates of an
in)estor are con)erted into e*ui)alent number of securities in electronic form and
credited to the in)estor’s account with his 9epository .articipant. +he ban offers
its customer for opening a 9emat Account so that their online trading could be
made easy. +he annual charges for maintaining a 9emat Account with >921
:an is 0s. %00 p.a.
? NRI ACCOUNT7
As an ,0( customer# the ban understands that you ha)e specific baning needs.
+hat is why# the ban offers a )ariety of accounts K deposits specially designed to
suit the customer’s precise need.
1. $upee Sa'ings !((ounts:
• ,0- /a)ings Account
• ,0I /a)ings Account
We understand your world
• /pecial 0( /a)ings Account
3. $upee Current !((ounts:
• ,0- 1urrent Account
• ,0I 1urrent Account
<. $upee Fi.e& Deposits:
• ,0- 2i&ed 9eposits
• ,0I 2i&ed 9eposits
• /uper/a)er Account
• /weepBin Account
4. Foreign Curren(y Deposits:
• 2,10 9eposits
%. !((ounts for $eturning 0n&ians:
• 021 /a)ings Account
• 021 1urrent Account
• 021 2i&ed 9eposits
? /OANS7
>921 :an offer different types of loan to their customer. +hese are as below5
1. .ersonal @oan 11. 1ommercial Fehicle 2inance
3. >ome @oan 13. ;oring 1apital 2inance
<. +wo ;heeler @oan 1<. 1onstruction -*uipment 2inance
4. ,ew 1ar @oan
%. Used 1ar @oan
". I)erdraft Against 1ar
$. -&press @oan
'. @oan Against /ecurities
9. @oan Against .roperty
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10. >ealth 1are 2inance
? CREDIT CARDS7
/il)er 1redit 1ard >ealth .lus 1redit 1ard Falue .lus 1redit 1ard
(dea Aold 1redit 1ard (dea /il)er 1redit 1ard Aold 1redit 1ard
+itanium 1redit 1ard ;oman’s Aold 1redit 1ard 1orporate 1redit 1ard
? DEBIT CARDS7
-asy /hop (nternational Aold -asy /hop (nternational 9ebit -asy /hop ;oman’s
9edit 1ard 1ard Ad)antage 9ebit 1ard
? PREPAID CARDS7
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2ore&.lus 1ard Aift.lus 1ard Gisan 1ard
HDFC BANK – OPERATIONS
+he o)erall performance during the financial year 300%B0" remained healthy with total
net re)enues 4net interest income plus other income7 increasing by %1.1= to 0s. <""9.'
crores from 0s. 3439.< crores in 3004B0%. +he >921 :an has registered a robust
growth in different :alance /heet parameters. +otal deposits of the ban ha)e increased
from 0s. 3#193 crores on <1
st
6arch# 199' to 0s. '#43' crores as on <1
st
6arch 3003 to
0s. 1$#"%4 crores on <1
st
6arch# 300< to 0s. <0#409 crores on <1
st
6arch 3004 to 0s.
<"#<%4 crores as on <1
st
6arch 300% and to 0s. %%#$9$ crores as on <1
st
6arch 300".
+hus# there has been a tendency of the total deposits to nearly double in a span of two
years. +otal deposits of 0s. %%#$9$ crores at the end of 6arch 300" also included around
0s. 3#000 crores of collections held as a baner to )arious initial public offerings. /a)ings
account deposits# which are core to the ban’s strategy for building stable# low cost
sources of funds and reflect the strength of the retail liabilities franchise# increased from
0s. 1#90< crores on <1
st
6arch# 3001 to 0s. 3#9"0 crores on
<1
st
6arch# 3003 to 0s. 4#""< crores on <1
st
6arch 300<
and further to 0s. $#'04 crores on <1
st
6arch 3004 to 0s.
1"#1'" crores on <1
st
6arch# 300" and current account
deposits at 0s. 14#$%3 crores. +hus# sa)ings and current
account deposits both ha)e shown a compound annual
growth rate of %%.4= of the total deposits as on 6arch <1#
300". +he a)erage sa)ings balance per account has also
increased from 0s. 19#<"< in 3004 to 0s. 3"#$<3 in 300".
2urther# the share of sa)ings deposit in the >921 :an is now "$.4= of total deposits.
:ecause of this# the mi& of deposits is sewed in fa)our of low cost deposits. 9uring the
year 300%B0"# the ban’s incremental cost of deposits for the first time stood under 4=.
Along with increase in deposits# loans and ad)ances by the >921 :an ha)e also
increased rapidly with the passage of time. 9uring 300%B0"# gross ad)ances grew by
4'.1= to 0s. <'#41< crores. ,et ad)ances of the ban increased from 0s. '43
crores on <1
st
6arch 199' to 0s. <#4"3 crores on <1
st
6arch 3000# to 0s. "#'14
crores on <1
st
6arch 3003# to 0s. 1$#$4% crores on <1
st
6arch# 3004 and more
rapidly to 0s. <%#0"1 crores on <1
st
6arch 300". +his rapid increase in ad)ances was
primarily dri)en by a growth of 113.9= in retail ad)ances 4including 1ar loans#
personal loans# twoBwheeler loans# commercial )ehicle loans# etc. but e&cluding
in)estment in securitized paper7 and an increase of 3%.$= in wholesale ad)ances.
We understand your world
+he mi& of banCs total ad)ances as on 6arch <1
st
# 300" was "0= wholesale 40s.
31#0<$ crores7 and 40= retail 40s. 14#034 crores7
BUSINESS SEGMENT UPDATE
+he o)erall baning en)ironment remained benign in 300%B0"# other than the drying up
of li*uidity and resultant hardening of interest rates in the last *uarter. +he ban has been
able to achie)e healthy growth across )arious operating and financial parameters. +his
performance reflects the strength and di)ersity of the ban’s three primary business
franchises J $etail Banking" %holesale Banking an& Treasury# as well as a disciplined
approach to ris J reward management.
+he $etail Banking Business continued to be the fastest growing of the :an’s
businesses in 300%B0". +he :an has positioned itself as a oneBstopBshop financial
ser)ices pro)ider# focused primarily on the middle class# mass affluent and high ,etworth
segments. 9uring 300%B0"# the :an launched the RnoBfrills accountS# a basic sa)ings
account offering. +his product would facilitate financial inclusion for customers who
wish to maintain only toen minimum balances in their sa)ings accounts. +he :an’s
range of retail financial products and ser)ices is fairly e&hausti)e including )arious
deposit products# loans# credit cards# debit cards# depository 4custody ser)ices7#
in)estment ad)ice# bill payments and )arious transactional ser)ices. +he ban sells third
party financial products lie mutual funds and insurance to the retail customers. +he
success of the :an’s multi channel strategy is e)idenced in the fact that almost $$= of
customers initiated transactions are ser)iced through the nonBbranch channels. +he
:an’s total customer base increased from "'.1 lacs in 6arch 300% to 9".0 lacs in 6arch
300". +he :an’s focus on semi urban and under baned maret continued# with about
%4% of the :an’s branches now outside the top nine cities. +he :an also e&tends more
than half of its retail loans in nonBmetro marets. +he :an’s success in its third party
distribution business is best e)idenced with income from sales of mutual funds and life
insurance policies contributing o)er 30= of retail fees and commission. In the :an’s
housing loan business# the origination of the >921 home loan product crossed 0s. 3
billion per month in 6arch 300".
(n the %holesale Banking Business# the :an pro)ides its corporate and
institutional clients a wide range of commercial and transactional baning products#
baced by high *uality ser)ice and relationship management. +he :an now has four
business groups catering to )arious /mall and 6edium -nterprise customers e&tending
its ser)ices including cash management ser)ices# foreign e&change products and
electronics baning. +he :an also achie)ed healthy growth in its agriculture and micro
We understand your world
financing. .roducts including the Gisan Aold 1ard# rural supply chain initiati)es and
commodity finance co)ering the entire agriculture financing cycle# the :an’s direct
agriculture lending increased by o)er "0= during the year. +he :an has relationships
with o)er 3% micro finance institutions and has pro)ided financing where the ultimate
beneficiaries e&ceed <00000 households. 9uring financial year 300%B0"# growth in the
wholesale baning business continued to be dri)en by new customer ac*uisition and
higher cross sell with a focus on optimizing yields and increasing product penetration.
+he :an further consolidated its position as a leading player in the cash management
business 4co)ering all outstation collection# disbursement and electronic fund transfer
products across the :an’s )arious customer segment7 with )olumes growing from about
0s. '00000 crores in financial year 3004B0% to o)er 0s. 1000000 crores in financial year
300%B0". +he :an also strengthened its maret leadership in cash settlement ser)ices for
major stoc e&changes and commodity e&changes in the country. +he :an met the
o)erall priority sector lending re*uirement of 40= if net ban credit.
+he :an’s Treasury Banking Business has a presence in the foreign e&change#
deri)ati)es and local currency debt securities and money maret. +he treasury group
manages the :an’s balance sheet and its responsible for compliance wit reser)e
re*uirements and management of maret and li*uidity ris. 9uring 300%B0" re)enues
from foreign e&change and deri)ati)e transactions grew by ".<% to 0s. 11'." crores with
o)er 40= of the re)enue streams emanating from retail and /mall and 6edium enterprise
4/6-7 segments. +he :an has to realize gains in a declining interest rate en)ironment
but e&poses the :an to losses or depreciation in )alue of in)estments when yields rise.
>921 :an remains e&posed to maret ris primarily on the nonB/@0 in)estment
portfolio in the A)ailable for /ale 4A2/7 category. (n 6arch 300"# there was a sharp
increase in short term yields in the debt maret which resulted in mared to maret loss
of 0s. '9.$ crores mainly on the nonB/@0 boo.
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FINANCIAL HIGHLIGHTS
+heard of 9irectors of >921 :an @imited appro)ed the annual audited 4(ndian
AAA.7 accounts for the year ended 6arch <1# 300" at their meeting held in 6umbai on
6onday# April 1$# 300". +he comparati)e financial statement for the last si& years is as
follows5
40s. @acs7
5AAA3A6 5AA63A5 5AA53A< 5AA<3A> 5AA>3A? 300%B0"
(nterest (ncome 1#3%9#4" 1#$03#99 3#01<#"1 3#%4'#9< <#09<#49 4#4$%#<4
(nterest -&pense $%<#$% 1#0$<#$4 1#191#9" 1#311#0% 1#<1%#%" 1#939#%0
Net Interest In&o)e ?A?+@6 C59+5? =56+C? 6+<<@+== 6+@@@+9< 5+?>?+=>
Ither (ncome 1$"#%$ <<%#90 4"%#%% 4'0#0< "%1#<4 1#13<#9'
Net Re!enues C=5+5= 9C?+6? 6+5=@+5A 6+=6@+96 5+>59+5@ <+CC9+=5
Iperating costs <09#%9 41$#9% %$$#0% '10#00 1#0'%#40 1#"91#09
Operatin# Resu*t <@5+C9 ?>@+5A @6A+6? 6+AA@+96 6+<><+=@ 6+9@=+@<
.ro)isions and 1ontingencies %$#"< 131#'3 1<9#<0 3''#9% <"4#9< $3%#33
Pro(it 2e(ore ta1 <6?+AC >5?+<= ?@A+=? @6=+9C 9@=+9> 6+5?<+?6
.ro)ision for ta&ation 104#94 13'#<4 1'<#3% 309#4" <1<#<' <'3#$<
Pro(it a(ter ta1 56A+65 59@+A> <=@+CA ?A9+?A CC?+?C =@A+@=
.un$s7
9eposits 11#"%'#11 1$#"%<#'1 33#<$"#0$ <0#40'#'" <"#<%4#3% %%#$9"#'3
/ubordinated debt 300#00 300#00 300#00 "00#00 %00#00 1#$03#00
/tocholders’ -*uity 91<#09 1#943#3' 3#344#'< 3#"91#'' 4#%19#'% %#399#%<
;oring 2unds 1%#"1$#<< 3<#$'$#<' <0#434#0' 43#<0"#99 %1#439#00 $<#%0"#<9
@oans 4#"<"#"" "#'1<#$3 11#$%4#'" 1$#$44#%1 3%#%""#<0 <%#0"1#3"
estments $#14%#14 13#004#03 1<#<''#0' 19#3%"#$9 19#<49#'1 3'#<9<#9"
He% Ratios7
-arnings per share 40s.7 '."4 11.01 1<.$% 1$.9% 33.93 3$.93
0eturn on A)erage ,etworth 34.%<= 1'.<0= 1'.10= 30.14= 30.44= 1$.4$=
+ier 1 1apital 0atio '."9= 10.'1= 9.49= '.0<= 9."0= '.%%=
+otal 1apital 0atio 11.09= 1<.9<= 11.13= 11.""= 13.1"= 11.41=
9i)idend per share 40s.7 3.00 3.%0 <.00 <.%0 4.%0 %.%088
9i)idend payout ratio 3%.%%= 3<."'= 34.$3= 33.1%= 34.00= 33.%%=
o )alue per share as at 6arch <1#
300" 40s.7
<$.%0
"9.00 $9."0 94.%3
14%.'" 1"9.34
We understand your world
6aret price per share as at 6arch
<1# 300" 40s.78
33'.<% 3<"."0
3<4.%%
<$'.$% %$<."4 $$4.3%
.rice to -arnings 0atio 3".4< 31.%0 1$.0" 31.10 3%.0< 3$.$4
0s. 10@acs T 0s. 1 6illion 0s. 1 1rore T 0s. 10 6illion 88 .roposed 8 /ource5 ,/-
HD.C BANH /IMITED BA/ANCE SHEET
AS AT <6
ST
MARCH+ 5AAC
In terms of our report of even date attached. 2or and on behalf of theard He"i M8 Mistr%
2or P8C8 Hansotia Co8 9a#$is' Capoor Dineet 9ain
Chartered Accountants Chairman As'i) Sa)anta
H'urs'e$ N8 Pasta"ia A$it%a Puri Dr8 Den"at Rao Ga$0a*
Partner Managing Director Renu Harna$
CAPITA/ AND /IABI/ITIES
1apital
0eser)es and /urplus
-mployees’ stoc options 4grants7
outstanding
9eposits
rrowings
/ubordinated debt
Ither liabilities and pro)isions
Tota*
ASSETS
1ash and balances with 0eser)es :an of
(ndia
:alances with bans and money at call and
short notice
estments
Ad)ances
2i&ed assets
Ither assets
Tota*
1ontingent liabilities
:ills for collection
+he attached notes form part of the financial
statements.
/chedule
1
3
<
4
%
"
$
'
9
10
11
13
As at
<68A<85AAC
<1<#14
4#9'"#<9
$
%%#$9"#'3
3#'%'#4'
1#$03#00
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SanIa% Don#re Ar!in$ Pan$e
Vice President (Legal Bo22% Pari"'
6umbai# 1$ April# 300" ! Compan" #ecretar"
Director
NNNNNNNNNNNNNNNNNNNNNNN
0s. 10 lacs T 0s. 1 million
.inan&ia* Ana*%sis7
? +rofit 1 2oss !((ount: 3uarter en&e& Mar(h 45" 6778
2or the *uarter ended 6arch <1# 300"# the :an earned total income of 0s.
1#"'3.$ crores as against 0s. 1#0'$.< crores in the corresponding *uarter ended
6arch <1# 300%. ,et re)enues 4net interest income plus other income7 were Rs8
6+A><8C &rores for the *uarter ended 6arch <1# 300"# an increase of >585B o)er
Rs8 @<<8C &rores for the corresponding *uarter of the pre)ious year. (nterest
earned 4net of loan origination costs7 increased from Rs =C@85 &rores in the
*uarter ended 6arch <1# 300% to Rs8 6+<@=8? &rores in the *uarter ended 6arch
<1# 300". ,et interest income 4interest earned less interest e&pended7 for the
*uarter ended 6arch <1# 300" increased by >>8AB to 0s. $<9.4 crores# dri)en by
a)erage asset growth of >@8CB and a net interest margin of just o)er 4=.
Ither income for the *uarter ended 6arch <1# 300" was up by <=85B to
Rs8 <A>85 &rores# consisting primarily of fees K commissions of 0s. <<".$ &rores#
foreign e&change K deri)ati)es re)enues of 0s. 4".< crores# and profit ? loss on
sale K re)aluation of in)estments of 0s. 4'".'7 crores as against 0s. 1$".' crores#
0s 3%.% crores and 0s. 30.% crores respecti)ely for the *uarter ended 6arch <1#
300%. @osses on sale K re)aluation of in)estments during the *uarter were
primarily on nonB/@0 in)estments# due to the sharp increase in short term yields
in the debt maret in 6arch 300". Iperating e&penses for the *uarter at 0s. 4'3.<
crores were >C85B of net re)enues. .ro)isions and contingencies for the *uarter
were 0s. 1'1." crores 4against 0s. 10$.1 crores for the corresponding *uarter
ended 6arch <1# 300%7# and primarily comprised general K specific loan loss
pro)isions of 0s. 110.< crores and amortization for in)estments 4in the >eld to
6aturity category7 of 0s. $1.$ crores as against 0s. %%.1 crores and 0s. %9."
crores respecti)ely for the corresponding *uarter ended 6arch <1# 300%. After
pro)iding 0s. 11".4 crores for ta&ation# the :an earned a ,et .rofit of 0s. 3"<.3
crores# a <A86B increase o)er the *uarter ended 6arch <1# 300%.
? +rofit 1 2oss !((ount: 9ear en&e& Mar(h 45" 6778
2or the year ended 6arch <1# 300"# the :an earned total income of Rs8 ?+?998<
&rores as against 0s. <+@>>8= &rores in the corresponding period of the pre)ious
year. ,et re)enues 4net interest income plus other income7 for the year ended
6arch <1# 300" were 0s. <#""9.' crores# up ?686B o)er 0s. 3#439.< crores for the
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year ended 6arch <1# 300%. ,et .rofit for year ended 6arch <1# 300" was 0s.
'$0.' crores# up <A8=B+ o)er the corresponding year ended 6arch <1# 300%.
? Balan(e Sheet: !u&ite& as on Mar(h 45
st
" 6778
9uring 300%B0"# the :an’s total balance sheet size increased by >589B to 0s.
$<#%0".4 crores. +otal 9eposits increased by %<.%= from 0s. <"#<%4.< crores 4as
of 6arch <1# 300%7 to 0s. %%#$9".' crores 4as of 6arch <1# 300"7. /a)ings
account deposits at 0s. 1"#1'%.' crores and current account deposits at 0s.
14#$%3.% crores# together accounted for appro&imately %%.4= of total deposits as
of 6arch <1# 300". 9uring 300%B0"# gross ad)ances grew by 4'.1= to 0s.
<'#413." crores. +his was dri)en by a growth of $9.$= in retail ad)ances to 0s.
31#3<1.1 crores# and an increase of 568@B in wholesale ad)ances to 0s. 1$#1'1.%
crores. Ine of the reasons for the high growth rate in retail loans was that the
*uantum of retail loans securitized 4sold7 during the year was less than half of the
0s.4#'00 crores sold during the pre)ious year. +he ban’s core customer assets
4ad)ances plus credit substitutes lie commercial paper# corporate bonds etc87
increased by >>89B to 0s. <'#993.4 crores in 6arch 300". (n addition# the ban
held 0s. 4#4%$.1 crores of in)estments in mortgage baced and asset baced
securities where the underlying assets were primarily home loan and commercial
)ehicle?car loans recei)ables. +otal customer assets 4including securitization
in)estments7 were therefore 0s. 4<#449.% crores as of 6arch <1# 300".
? Di'i&en& +ayout:
+heard of 9irectors recommended an enhanced di)idend of ??B for the year
ended 6arch <1# 300"# as against 4%= for the pre)ious year 4which included a
special oneBtime di)idend of %= on the occasion of the :an completing 10 years
of operations7. +his would be subject to appro)al by the shareholders at the ne&t
annual general meeting.
? Capital !&e:ua(y $atio:
+he :an’s total 1apital Ade*uacy 0atio 41A07 as at 6arch <1# 300" stood at
668>B as against the regulatory minimum of
9.0=. +ierB( 1A0 was '."=. 9uring 300%B0"#
<3.$ lac shares were allotted to the employees of
the :an pursuant to the e&ercise of options
under the -mployee /toc Iption /cheme of
the :an. +he :an raised 0s 1#303 crores
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subordinated debt at an annualized coupon ranging between $.%= to '."= and
ha)ing a maturity from 9 to 10 years. +he debt is subordinated to present and
future senior indebtness of the :an and *ualifies as +ierB(( capital under 0’s
guidelines for assessing capital ade*uacy for the year 300%B0".
ACHIEVEMENTS
>921 :an began operations in 199% with a simple mission5 to be :a -or*$3&*ass
In$ian Ban"J. +he :an realized that only a singleBminded focus on product *uality and
ser)ice e&cellence would help to get there. +oday# the :an is proud to say that it is well
on the way towards that goal.
(t is e&tremely gratifying that :an’s efforts towards pro)iding customer
con)enience ha)e been appreciated both nationally and internationally.
• AWARDS FOR THE YEAR 2005-06
? :Best Ban" in In$ia; J 300% :usiness +oday J G.6A /ur)ey
? :Best Do)esti& Co))er&ia* Ban"; :Best Cas' Mana#e)ent
Ban"; J (ndia J Asiamoney Awards for 1orporate -&cellence 3004B0%
? RBest Ban"; J In$ia J 2inance Asia
? :Co)pan% o( t'e Eear; J +he -conomic +imes Awards for 1orporate
-&cellence 3004B0%
? :Best Do)esti& Ban" In In$ia; J +he Asset +riple A 1ountry Awards
300%
? :Most Custo)er Responsi!e Co)pan% 4 Ban"in# an$ .inan&ia*
Ser!i&es; J +he -conomic +imes J A)aya Alobal 1onnect 1ustomer
0esponsi)eness Awards 300%
• AWARDS FOR THE YEAR 2004-05
? JBest Ban" in In$iaJ 4 3004 :usiness +oday J G.6A /ur)ey
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? JBest O!era** /o&a* F Do)esti& Ban" 4 In$ia 3 >ong GongBbased
2inance Asia magazine
? JOne o( In$iaKs Most Respe&te$ Co)panies J as part o( T'e Business
-or*$ Most Respe&te$ Co)pan% A0ar$s 5AA> 3 :usiness ;orld
? :Best Un$er a Bi**ion 6AA Best S)a**er SiLe Enterprises in Asia F
Pa&i(i& an$ Europe; 3 2orbes Alobal
? :Operationa* E1&e**en&e in Retai* .inan&ia* Ser!i&es; 4 In$ia 3 Asian
:aner -&cellence in 0etail 2inancial /er)ices .rogram
• AWARDS FOR THE YEAR 200-04
? :Best /o&a* Ban"; 4 In$ia 3 >ong GongBbased 2inance Asia magazine
? JBest Ban" in In$iaJ 4 300< :usiness +oday J G.6A /ur)ey
? :Best Do)esti& Ban"; 3 +he Asset +riple A 1ountry Awards
? :Best Un$er a Bi**ion+ 5AA Best S)a** Co)panies (or 5AA<; 3 2orbes
Alobal
? :Best Ne0 Pri!ate Se&tor Ban" 3 5AA< in t'e .E3Ernst Eoun# 3 +he
2inancial -&press
? :Best Ban" in t'e Pri!ate Se&tor; 3 Iutloo 6oney magazine
? :Best IT User in Ban"in#; 3 ,A//1I6 and economictimes.com J 300<
• AWARDS FOR THE YEAR 2002-0
? :Best /o&a* Ban"; 4 In$ia 3 >ong GongBbased 2inance Asia magazine
? JBest Ban" in In$ia; 3 -uromoney magazine
? :Co))er&ia* Ban" in In$ia 5AA5; 3 Asiamoney magazine
• AWARDS FOR THE YEAR 200!-02
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? :Best Do)esti& Co))er&ia* Ban" 4 In$ia; 3 >ong GongBbased 2inance
Asia magazine
? :Best Ban" in In$ia; 3 -uromoney magazine
? :<AA Best S)a** Co)panies one o( t'e M5A (or 5AA6N 2est .E3EE Best
Ban"s s)a** &o)panies 3 2orbes Alobal
? :A0ar$s (or Corporate E1&e**en&e as t'e E)er#in# Co)pan% o( t'e
Eear; 3 +he -conomic +imes
• AWARDS FOR THE YEAR 2000-0!
? :In$ia Ks Best Ban"; 3 :usiness (ndia
? :Best Do)esti& Co))er&ia* Ban" 4 In$ia; 3 >ong GongBbased 2inance
Asia magazine
? :Best Pri!ate Se&tor Ban"; 3 :usiness +oday
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HDFC BANK – SWOT
ANALYSIS
STRENGTHS:
? >921 :an has strong brand e*uity.
? >921 :an has the second largest number of lined branches in the country and
also has the most ad)anced data warehouse. +he total numbers of branches of the
:an were %<% at the end of 6arch 300" as against only <13 at the end of 6arch
3004. +his pro)ides a competiti)e edge o)er the competitors.
? +he *uality of >921 :an product portfolio is e&cellent.
? +he company has a strong and rich infrastructure to support its woring which
include a strong technological base.
? (t has a highly silled worforce# which gi)es a competiti)e ad)antage o)er
others.
? >921 :an is strongly positioned as a collecting ban in the (.I maret.
? +he :an has registered a strong deposit growth. 9uring 300%B0"# total deposits
increased by %%.4 supported by an increase of "$.4= in sa)ings deposits.
WEAKNESSES:
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? A wea networ of A+6s in comparison to its main competitors# especially (1(1(
:an# U+( :an and /tate :an of (ndia.
? :eing not a ,ationalized :an general customers are found reluctant in :aning
with this ban# as also in other pri)ate sector bans.
? :usiness per employee in the >921 :an at 0s. $$' lacs# although higher than
(9 :an and (1(1( :an# was lower than U+( :an 40s. '9" lacs7 and
(ndus(nd :an 40s. 1#%'' lacs7.
? Iperating -&penses as percentage of total assets ha)e been higher for the >921
:an as compared to some of its competitors.
OPPORTUNITIES:
? ;ith emphasis on core )alues such as customers focus# operating e&cellence#
product leadership and the people# along with open and transparent wor culture#
the >921 :an has a bright future.
? /ince >921 :an has in)ested in technology right from its inception. (ts
technology platform has been acnowledged as one of the best in terms of
robustness# fle&ibility and cost efficiency. +his would help the ban to further
build cost and ser)ice ad)antage and compete not only with other pri)ate sector
bans but also with foreign bans those who are opening more and more branches
in (ndia.
? +he :an has infused the philosophy of 1orporate Ao)ernance in all its acti)ities.
+he philosophy would help the ban to mo)e further towards shareholder
protection and ma&imization of their longBterm )alues.
? :eing customer becoming more ser)ice oriented could open up new a)enues of
growth for the :an.
? (n case of future ad)ancement >921 is well placed to capitalize on any such
opportunities.
THREATS:
? +he company is facing tough competition from players lie /# (1(1( :an and
U+( :an itself. +his might reduce the margins in the future.
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? +he company is foraying into fields where they don’t ha)e e&perience of
operations and might end up deteriorating the *uality of the assets. +his remains a
ey threat in the fast changing global scenario.
? (n a mad race for e&panding retail lending# especially in housing and auto loans#
bans are laying less emphasis on collaterals. +his is liely to increase the ris of
defaults for bans including >921 :an.
OVERVIEW OF BANKING
SECTOR
Ban"in# Stan$s .or
:aning refers to the business of accepting deposits and lending money. +he deposits are
repayable on demand and withdrawal by che*ue or draft.
Meanin# o( Ban"in# Co)pan%
According to /ection % of :aning 0egulation Act# 1949# RA :aning 1ompany means
any company which transacts the business of baning. :aning means the accepting for
the purpose of lending or in)estment# or deposits of money from the public# payable on
demand or otherwise and withdrawal by che*ue# draft or otherwiseS.
.opularly# baning company is called a ban or baner.
,ow a day# in addition to acceptance of deposits# the ban pro)ides )arious other ser)ices
lie safe custody of )aluables# remittance of funds etc. +hus# a ban may define as
institution# which is engaged in accepting deposits# pro)iding loans and other ser)ices to
its customers and the general public.
BANHING IN INDIA7 3 A Histori&a* Perspe&ti!e
(ndian bans ha)e a che*uered history. +he :ritish legacy left behind a host of large and
small pri)ate bans that were not *uite professional in their approach. (ndia at
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(ndependence was underBbaned. :an of >industan# set up in 1'$0# was the earliest
(ndian :an. :aning in (ndia on modern lines started with the establishment of three
presidency bans under .residency :an’s Act 1'$" i.e. :an of 1alcutta# :an of
mbay and :an of 6adras. (n 1931# all presidency bans were amalgamated to form
the (mperial :an of (ndia. (mperial :an carried out limited central baning functions
also prior to establishment of 0. (t engaged in all types of commercial baning
business e&cept dealing in foreign e&change.
0eser)e :an of (ndia Act was passed in 19<4 and 0eser)e :an of (ndia 407
was constituted as an ape& ban without major go)ernment ownership. :aning
0egulations Act was passed in 1949. +his regulation brought 0eser)e :an of (ndia
under go)ernment control. Under the act# 0 got wide ranging powers for super)ision
and control of bans. +he Act also )ested licensing powers and the authority to conduct
inspections in 0.
(n 19%%# 0 ac*uired control of the (mperial :an of (ndia# which was renamed
as /tate :an of (ndia 4/7. (n 19%9# / too o)er control of eight pri)ate bans
floated in the erstwhile princely states# maing them as its 100= subsidiaries.
0 was empowered in 19"0# to force compulsory merger of wea bans with the
strong ones. +he total number of bans was thus reduced from %"" in 19%1 to '% in 19"9.
(n !uly 19"9# go)ernment nationalized 14 bans ha)ing deposits of 0s. %0 crores and
abo)e. (n 19'0# go)ernment ac*uired " more bans with deposits of more than 0s. 300
crores. ,ationalization of bans was to mae them play the role of catalytic agents for
economic growth. +he ,arsimham 1ommittee report suggested wide ranging reforms for
the baning sector in 1993 to introduce internationally accepted baning practices. +he
amendment of :aning 0egulation Act in 199< saw the entry of new pri)ate sector
bans.
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PREFACE
>91 :an has been promoted by >ousing 9e)elopment 2inance 1orporation 4>9217#
(ndia’s premier housing finance company. +he >ousing 9e)elopment 2inance
1orporation @imited 4>9217 was amongst the first to recei)e an Uin principle’ appro)al
from the 0eser)e :an of (ndia 407 to set up a ban in the pri)ate sector# as part of the
0’s liberalization of the (ndian :aning (ndustry. (n August1994# the ban was
incorporated in the name of U>921 :an @imited’ with its registered office in 6umbai.
+he ban commenced its operation as a /cheduled 1ommercial :an in !anuary 199%.
(n financial year 3003# the ban issued A90s amounting to U/ V 1$3.% mn at the
issue price of U/ V 1<.'< per share 41A90 T < e*uity shares7 at the ,ew Dor /toc
-&change.
@iberalization and reforms ha)e thrown up a few challenges as well as created
opportunities for bans to increase re)enues by di)ersifying into in)estment baning#
insurance# credit cards# mortgage financing# retail financing# depository ser)ices and
more. ;ith the emergence of eBcommerce# the way in which baning business is
presently conducted would undergo a radical change. 2uture competition among bans
will be essentially based on the twin platforms of technology sa))iness and ability to
attract talent. +elephone and internet baning will gain importance and the future will see
the emergence of internet dri)en operations without a broadBbased branch networ.
(ncreasing competition will e&ert pressure on bottom line# forcing bans to cope with
thinning margins. (t is looing for both organic and inorganic growth.
+he year 300" has witnessed rapid changes in the baning sector with a rather
strong and aggressi)e presence of pri)ate sector (ndian bans. +hese new bans ha)e
taen a sizable amount of business away from the public sector as well as the foreign
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bans. +his new crop of bans has been le)eraging technology to its ad)antage to rope in
new business and create a sizable presence in this sector. +he gradual deregulation of the
sector has been increased presence of such bans in almost all sectors that warrant their
ser)ices. +he decrease in the small sa)ings interest rates by the Ao)ernment has been the
strongest incenti)e for this sector to attract new client. :ut on the other hand# the lower
growth in the economy of around $.3= 4initial target was '=7 has also affected the
baning sector.
2uture /cenario5 ;ith most of the bans# including the pri)ate sector ones fast adopting
the latest technologies in baning# the early bird ad)antage of technological superiority
will soon fade away. ;ith most bans pro)iding almost all ser)ices under the sun and the
real potential of the retail maret now unfolding# most bans operating on similar lines
are e&pected to e&hibit more than normal rates of growth in the short term. (n the long
term# the differentiating factor will be the ability of these bans to retain their customer
base at affordable margins both to itself as well as its client.
>921 :an emphasizes a lot on *uality control. (t has become the first ban in
(ndia to get (/I 900153000 certification for depository ser)ices at the 1entral .rocessing
Unit and bacend processing of retail liabilities and direct baning operations. +he ban
also has (/I 900153000 certification for 1ustodial ser)ices.
6y tas during the summer training was concerned with taing feedbac
regarding customer awareness of the 1lassic .ortfolio .rogramme. ( had study the maret
and analyze the prospecti)e customers who might not still aware of the classic
programme.
( tried to now the preferences of the customer and did analyze the same with
other pri)ate bans. ( thoroughly e&plored the maret and ha)e e&amined the factors
influencing the present and future prospects of >921 :an.
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GROUP MEMBERS
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CREDIT RATING
>921 :an has its deposit programs rated by two rating agencies B Cre$it Ana*%sis
Resear&' /i)ite$ (CARE) an$ .it&' Ratin#s In$ia Pri!ate /i)ite$. +he :anCs
2i&ed 9eposit programme has been rated KCARE AAA (.D)K OTrip*e AP by 1A0-#
which represents instruments considered to be Eof the best *uality# carrying negligible
in)estment risE. 1A0- has also rated the :anCs 1ertificate of 9eposit 4197 programme
JPR 6QJ which represents Esuperior capacity for repayment of short term promissory
obligationsE. 2itch 0atings (ndia .)t. @td. 4100= subsidiary of 2itch (nc.7 has assigned
the JtAAA (in$ r)J rating to the :anCs deposit programme# with the outloo on the
rating as EstableE. +his rating indicates $highest credit %ualit"$ where $protection factors
are ver" high$.
>921 :an also has its long term unsecured# subordinated 4+ier ((7nds of
0s.4 billion rated by 1A0- and 2itch 0atings (ndia .ri)ate @imited. 1A0- has assigned
the rating of JCARE AAAJ for the +ier ((nds while 2itch 0atings (ndia .)t. @td. has
assigned the rating JAAA (in$)J with the outloo on the rating as EstableE. (n each of the
cases referred to abo)e# the ratings awarded were the highest assigned by the rating
agency for those instruments.
Corporate Go!ernan&e Ratin#
+he ban was one of the first four companies# which subjected itself to a 1orporate
Ao)ernance and Falue 1reation 4AF17 rating by the rating agency# +he 1redit 0ating
(nformation /er)ices of (ndia @imited 410(/(@7. +he rating pro)ides an independent
assessment of an entityCs current performance and an e&pectation on its Ebalanced )alue
creation and corporate go)ernance practicesE in future. +he ban has been assigned a
KCRISI/ GDC /e!e* 6K rating which indicates that the banCs capability with respect to
wealth creation for all its staeholders while adopting sound corporate go)ernance
practices is the highest.
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MAIN COMPETITORS
>921 :an is one of the largest pri)ate ban in (ndia# it has many competitors in the
maret on the way of its de)elopment. /till the ban has *uite efficiently managed its
competitors and pa)es the path of success in the following 10 years since its inception.
+he competitors are in the form of two categories lie Private &an's of India and
(oreign &an's of India
+ri'ate Banks of 0n&ia:
? (1(1( :A,G
? U+( :A,G
? (9 :A,G
? (,9U/(,9 :A,G
? GI+AG 6A>(,90A :A,G
? (,A FD/DA :A,G
Foreign Banks of 0n&ia:
? >/:1 :A,G
? /+A,9A09 1>A0+-0-9 :A,G
? 1(+( :A,G
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COMPOSITION OF HDFC BANK, GOLPARK
BRANCH (KOLKATA)
.
Bran&' o((i&e7 >921 :an @td. Re#istere$ o((i&e7 >921 :an >ouse
1<3A# 9r. 6eghnad /aha /arani# /enepati :apat 6arg
4@ocation5 Aolpar7 @ower .arel#
Golata J $00 039 6umbai J 400 01<
.h5 0<< 34"< 1<'%? 34"< 3041 .h5 033 ""%3 1000
Bran&' Mana#er
Assistant Mana#er Re*ations'ip Mana#er Deput% Bran&'
Mana#er
Aut'oriLe$ Persona*
Ban"er
Aut'oriLe$ Te**er
Te**er 6 Te**er 5
In!est)ent
Re*ations'ip Mana#er
PB 6 PB > PB 5 PB <
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0n'estors are the ba(kbone"
Customers the heart an&
;mployees the soul of our Bank#
R "#ilo$o%#& of HDF' (an)
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DECLARATION
I hereby declare that the information presented in this
Project Report is correct to the best of my knowledge.
This project has not been published anywhere else.
SAEAN GANGU/E
PGDBM 4 III SEMESTER
MF66F96 O.INANCEP
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ACKNOWLEDGEMENT
No gain without pains is a common saying. Gratitude is the hardest of emotion to
express and often does not find adeuate words to con!ey. Therefore" a Project
Report is not an effort of a single person but it is a contributory effort of many
hands and brains.
I am heartily grateful to the #lmighty" whose blesses and grace helped me in
competing the project" for they did not disposed what I proposed.
In this regard I would like to thank to Prof. $ukund %al &'irector General of
($() and $r. Neeraj (ri!asta! &'G$ * +orporate Relations) for pro!iding me an
opportunity to do my summer training project in ,'-+ .ank.
(econdly" I would like to thank ,'-+ .ank for pro!iding me information
which is helped in making my project.
I am !ery thankful to $r. #nindya (undar .asu &R($*,R*/ast) for pro!iding
me an opportunity to do my summer training project in ,'-+ .ank.
I would like to express my deep gratitude towards $r. ,arsha 'utta &.ranch
$anager) of ,'-+ .ank Golpark .ranch" 0olkata" for his !aluable guidance and co1
operation.
I deeply acknowledge the interest and enthusiasm shown by all the +lassic
Portfolio +ustomers and other banks of 0olkata while filling up the uestionnaire.
I would like to thank all other members of the branch for their efforts and
also their co1operation in successful completion of my training.
I am indebted to 'r. '. (. $ishra &(enior Professor) ($( 2aranasi" who
helped me in completing my project work.
%astly" I express my sincere gratitude towards my lo!ing and caring parents
who supported and guided me throughout my training period and helped me in
successful completion of the project.
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PART - I
CROSS SE//ING TO C/ASSIC
PORT.O/IO CUSTOMERS
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INTRODUCTION
+he C*assi& Port(o*io was introduced in 300< with a )iew to identifying customers with
large 1A/A 41urrent Account and /a)ings Account7 balances# who also had potential to
grow.
+he 1lassic .ortfolio was relaunched as at 1
st
April 300% to achie)e the following
four objecti)es5
• +o include a much larger base of customers and capture share of wallet.
• +o consciously impro)e customers retention from these customers through cross
sales and enhanced liability balances.
• +o pro)ide a bundled offering in recognition of their e&isting relationship and to
further enhance it.
• +o gi)e .:s 4.ersonal baner7 greater ownership of these customers for whom
they are responsible.
C*assi& Ban"in# Pro#ra))e7
+he 1lassic baning has been centrally identified and raced to .:s since 300<. +he logic
behind creating this portfolio lay in identifying customers with large balances. (t was felt
that these customers offered high potential to enhance balances if they were proacti)ely
focused on by branches. I)er the last couple of years# it has been obser)ed that full
justice has been done to the inherent potential of this portfolio offered since it was )iewed
as a Rglorified databaseS. +o correct this# it was R/tructuredS .rogramme needed to be
e)ol)ed.
;hile not enlisting as a Pre(erre$ Custo)er# it is widely belie)ed that we need
to include customers on the 1lassic .ortfolio in a more structured relationship
programme# managed by .:s.
O2Ie&ti!e o( C*assi& Port(o*io Pro#ra))e7
? 0etaining e&isting base of relationships
? :e primary baner to these relationships
? 1ross sell products and ser)ices
? 1apture share of wallet )ia 2amily relationship
? 6ature the relationships to upgrade to .referred .rogramme
? -nhance customer profitability
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E*i#i2i*it% (or entr% into t'e C*assi& Ban"in# Pro#ra))e7
+o be eligible for the 1lassic :aning .rogramme the following criteria has to be met
? 0etail 0esident (ndi)idual.
? 1 /A account under customer (9 is mandatory.
? 1A/A AQ: TW 0s. % lacs at a customer (9?group le)el# with at least 1 sa)ings
account 4+enor of 29 is recommended to be at least " months7.
? (n addition to the abo)e# group profitability to be :ands 4 or %.
E1&*usi!e Bene(its a!ai*a2*e to C*assi& Custo)ers7
+he following benefits will be a)ailable to all 1lassic :aning .rogramme customers
? All 1lassic :aning .rogramme customers will ha)e a dedicated .ersonal :aner
4.:7 to loo after the relationship.
? +he .: will be a)ailable for ser)icing if the customer comes to the branch.
? +he .: will call and eep in touch with the customer to fulfill all ser)icing needs
and to cross sell and deepen the relationship.
? /pecial price offs or discounts on products and ser)ices will be a)ailable to the
1lassic :aning .rogramme customers as listed below.
Sr< )o< +ro&u(ts Benefits
1 9emat A?c All 1lassic customers can open multiple 9emat
A?cs with first year annual folio maintenance
charges wai)ed.
+his wai)ed is a)ailable e)en if all the 9emat
A?cs are lined ( to a single /A A?c.
+his pricing is a)ailable subject to assets being
deposited within the first month of opening the
9emat A?c
+he offer is applicable on all 9emat A?cs opened
after the customer is part of the .: programme.
+he 261 charges from second year onwards will
reduce to 0s. 3%0 pro)ided the customers
transfers shares into the A?c within the 1
st
year.
3 >/@ A?c .riced at 0s. "49 for registration
(f )olume transacted is 30% lacs within < months
of A?c opening# the AI1 will be credited in
broing A?c
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< 1redit 1ards All 1lassic .ortfolio customers can a)ail of a
+itanium 1redit 1ard by paying a one time fee of
0s. $%0 or All 1lassic .ortfolio customers can
a)ail of a Aold 1redit 1ard free for life
4 2ore& 1on)ersion rates on 2O transactions can be
impro)ed up to % paise on card rates for both buy
and sell
% 9ebit 1ards ,ormal 9ebit card annual fee of 0s. 100 will be
wai)ed for life 4where life T the duration the
customer is part of the 1lassic .ortfolio7
" @ocers Annual @ocer rental rates will be reduced by
3%= for these customers
$ 1ombined
6onthly
/tatement
All customers will recei)e a combined statement
at a monthly fre*uency. +he statement will
pro)ide details of all 1A/A and 29 A?cs where
the customers is the 1
st
holder
' :ill .ay :ill .ay charges of 0s. 3% per annum will be
wai)ed for these customers as long as they are
part of the 1lassic portfolio
9 (nsta Alert (nsta Alert charges will be wai)ed for these
customers as long as they are part of the 1lassic
portfolio
10 Assets 1lassic portfolio customers will get reduced
pricing on Asset product
11 /er)ice charges
4,on
6aintenance of
AQ: charges7
1harges on non maintenance of AQ: will be
wai)ed for all A?c of the 1lassic portfolio
customers
PB Port(o*io Pro#ra))e Entr% .or)7
>921 :an uses a particular form to enlist the e&isting customer’s name into the
.ortfolio .rogramme. +he e&act form is shown below which the ban uses for raising its
customer’s name.
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PB Port(o*io Pro#ra))e Entr% .or)
.: 1ode5 :r 1ode5 :0 ,ame5
8 Aroup (95 ,ame of .rimary (9 in 0elationship5
() *ote+ ,roup ID should &e the cust of the Primar" ID
Sr8 No8 Cust ID Na)e o( Custo)er Re*ations'ip to Group ID
1
3
<
4
%
"
$
'
9
10
11
13
1<
14
1<
B (s this a new groupX Des ,o
B (s this an addition to an e&isting groupX Des ,o
B (s this regrouping of an e&isting groupX Des ,o
B (s this a change in .: codesX Des ,o
B (f yes# is current .: appro)al attachedX Des ,o
B (s this an upgrade from 2amily a?c to .: .ortfolioX Des ,o
B (f yes# is 2amily a?c -&it 2orm attachedX Des ,o
B 9oes this group meet eligibility criteriaX Des ,o
B (f no# is 0:6 appro)al attachedX Des ,o
B (s there W 10 (9s being groupedX Des ,o
B (f yes# is 0:6 appro)al attachedX Des ,o
/ignature of .:5NNNNNNNNNNNNNNNNNNNNNNNNNNNNNNN
/ignature of :65NNNNNNNNNNNNNNNNNNNNNNNNNNNNNNN
9ate5NNNNNNNNNNNNNNNNNNNNNNNNNNNNN
.: ,ame5NNNNNNNNNNNNNNNNNNNNNNNN
:6 ,ame5NNNNNNNNNNNNNNNNNNNNNNN
.or o((i&e Use on*% 4 CPU A&ti!it%
.: 1ode update Des
Aroup (9 6aintained Des
-thnic code maintained Des
1ombined statement flag maintained Des
.: .ortfolio 6emo maintained Des
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RESEARCH OBECTIVES
+he objecti)es of the project are enumerated as below5
? To (in$ out t'e A0areness o( C*assi& Port(o*io Pro#ra))e a)on#
t'e &usto)ers re#ar$in# (a&i*ities pro!i$e$ 2% t'e 2an"
? To #au#e t'e *e!e* o( ser!i&e o((ere$ 2% t'e 2an" an$ $e#ree o(
satis(a&tion a)on# t'e &usto)ers
? To (in$ out $i((erent issues o( t'e &usto)ers re*atin# to t'eir
in!est)ent an$ in 0'i&' s&'e)e t'e% 'a!e in!este$ )ore
? To e!a*uate t'e per&enta#e o( 2an"in# 2% t'e &usto)ers 0it'
HD.C Ban"
? To $eri!e t'e nee$ o( a$$itiona* pro$u&ts 2% t'e &usto)ers
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RESEARCH
METHODOLOGY
? Resear&' Pro2*e)7
+he research problem was to find out Awareness of 1lassic .ortfolio .rogramme
among customers regarding facilities pro)ided by the bans.
? T%pe o( Resear&'7
+he research conducted was descripti)e in nature.
? Sa)p*e Te&'nique7
/imple 0andom /ampling.
? Area Se*e&te$ (or resear&'7
+he sur)ey was conducted on classic customers at the Golata city.
? Sa)p*in# Units7
-ach respondent was considered as a single unit in the sur)ey
.
? Sa)p*e siLe7
+he sampling was done taing 300 units of the uni)erse i.e.# taing the total .:
1lassic .ortfolio customers of HD.C Ban"
? Co**e&tion O( Data7
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+he data that is used for this project is primary data i.e.# first hand data is used.
+he method used for collection of data is through *uestionnaire method. +he
*uestions were ased related to the problems and feedbac was recei)ed
LIMITATIONS
/ome limitations are being faced during the sur)ey was conducted. +he limitations are
listed as5
? 9ue to time and money constraints during /ummer +raining ( could not complete
the sur)ey on total classic portfolio customers of 1<00
? 1ancellation of an appointment with the customers on a particular day due to their
time constraints is one of the limitations faced during the sur)ey
? /ome customers are unwilling to gi)e any appointment or spea o)er the
telephone
? /ome customers stays abroad. (t is not e)en possible to contact them o)er
telephone or meet them personally. ;hen contacted through email by sending the
feedbac form but didn’t get any reply.
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FINDINGS &
INTERPRETATION
68 Custo)ers 'a!in# pro$u&ts o( HD.C Ban"
Sa!in#s
AF&
Current
AF&
.i1e$
Deposit
Cre$it
Car$
Mutua*
.un$s
Insuran&e /o&"er /oan NRE
NRO
AF&
Ot'ers
No8 o(
Custo)ers
Respon$e$
300 300 300 300 300 300 300 300 300 300
B o(
Custo)ers
'a!in# t'e
pro$u&ts
100= 3= 1'= 1"= 10= 1<= <= "= 4= 10=
Interpretation
The abo!e table exhibits that with 344 responded customers" all of them
are ha!ing (a!ings #5c. #part from this the customers are also ha!ing other
products offered by ,'-+ .ank.
? 6nly 37 of 344 prospecti!e customers are ha!ing the +urrent #5c.
? -ixed 'eposit counts to 897.
? The percentage of holding credit cards among +lassic customers is
8:7.
? 847 of them ha!e in!ested in $utual -und through ,'-+ .ank.
? 8;7 ha!e done their Insurance in ,'-+ (tandard %ife.
? 6ut of 344" only ;7 customers are a!ailing the locker facility.
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? In loan segment" :7 respondents ha!e taken loan through ,'-+
.ank.
? The percentage of ha!ing NR/ < NR6 #5c in ,'-+ .ank is only =7
out of 344 responded customers.
? In others product &which includes (IP" 'emat #5c" 6n %ine Trading
#5c" .ill Pay" Intra #lert) are ha!ing customers of only 847.
58 A0areness o( C*assi& Port(o*io Pro#ra))e a)on# t'e &usto)ers
Options No8 o( Custo)ers Per&enta#e
Des 90 4%=
,o 110 %%=
Tota* 5AA 6AAB
Interpretation
A0areness o( C*assi& Port(o*io Pro#ra))e
No
??B
Ees
>?B
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The diagram shows that the awareness of +lassic Portfolio Programme among
the eligible customers is !ery less. 6nly =>7 &out of 344) responded
customers said that they are fully aware of the abo!e1mentioned
programme. .ut >>7 customers replied that they do not know about classic
programme.
<8 A0areness o( (a&i*ities pro!i$e$ un$er C*assi& Port(o*io Pro#ra))e
Options No8 o( Custo)ers Per&enta#e
Des '0 40=
,o 130 "0=
Tota* 5AA 6AAB
Interpretation
#s the awareness of the +lassic Programme is less among the responded
customers" its ob!ious that facilities pro!ided by the bank under this
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programme would be unknown to them. 6nly =47 said they are aware of the
facilities" which they are enjoying under this programme and :47 replied no.
>8 Custo)erNs Satis(a&tion /e!e* re#ar$in# ser!i&e o( HD.C Ban"
Options No8 o( Custo)ers Per&enta#e
Absolutely $0 <%=
0elati)ely 100 %0=
/omewhat 30 10=
,ot at all 10 %=
Tota* 5AA 6AAB
Interpretation
<?B
?AB
6AB
?B
0=
%=
10=
1%=
30=
3%=
<0=
<%=
40=
4%=
%0=
N
o
.
o
f
R
e
s
p
o
n
d
e
n
t
s
i
n
%
A2so*ute*% Re*ati!e*% So)e0'at Not at a**
Custo)erKs Satis(a&tion /e!e*
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Regarding the customer?s satisfaction le!el about the ser!ice rendered by
,'-+ .ank" the graph represents that half of the respondents are relati!ely
satisfied@ only ;>7 said they are absolutely satisfied with the ser!ice@ while
847 replied somewhat due to personal reasons.
?8 In!est)ent )a$e t'rou#' HD.C Ban"
Options No8 o( Custo)ers Per&enta#e
Des "0 <0=
,o 140 $0=
Tota* 5AA 6AAB
Interpretation
The abo!e diagram shows that out of 344 responded customers only ;47
ha!e made their in!estment through ,'-+ .ank in different schemes. .ut
A47 of them ha!e not in!ested through this bank.
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ReasonsB
8. Not aware of ,'-+ in!estment ser!ice option.
3. 6ther banks approached the customers much earlier than P. of
,'-+ .ank does and these banks rendered good customiCed
ser!ice and support after their in!estment.
;. $ost of the customers ha!e in!ested through their personal agent
and they offer !aluable incenti!es in return.
=. (ome financial institutions also offers brokerage cost at lower
le!el.
>. Getting direct online trading options from other banks.
:. (ome customers are Priority banking customers of other banks and
their any kind of acti!ities are handled from home and office with
the help of bank representati!e.
A. In!ested before opening an #ccount with ,'-+ .ank.
9. +ustomers in!esting in %I+ feel that their in!estment is much more
reliable and secured in according to Insurance sector.
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C8 In!este$ In
Options No8 o( Custo)ers Per&enta#e
6utual 2unds 30 10=
(nsurance 3% 1<=
/(. 1% $=
Tota* CA <AB
Interpretation
#s it has been already shown that only ;47 of the respondents ha!e made
their in!estment through ,'-+ .ank. #ccordingly" the graph exhibits that
out of ;47 customers 1 8;7 ha!e in!ested in different plans of Insurance@
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847 and A7 in!ested in di!ersified schemes of $utual -und and (IP
respecti!ely.
@8 Custo)er in!este$ in $i((erent s&'e)es t'rou#' HD.C Ban"
*+T+A,
F+-DS
I-S+RA-'E SI"
Tata
+ata (nfrastructure 2und#
+ata 1ontra 2und
Sun$ara)
8/undaram /elect
6idcap 2und# /undaram
0ural (ndia 2und
8/undaram /elect
6idcap 2und
SBI
/ 6agnum 1omma
2und
Hota"
Gota Ipportunities
2und# Gota 6idcap
2und
HSBC
>/:1 -*uity 2und#
8>/:1 Ad)antage (ndia
2und# 8>/:1 (ndia
Ipportunities 2und#
>/:1 Ailt 2und# >/:1
6idcap -*uity 2und
8>/:1 Ad)antage (ndia
2und
HD.C
8>921 -*uity 2und#
8>921 +I. 300 2und#
>921 1ore K /atellite
2und
8>921 Unit @ined
-ndowment .lan#
8>921 .ension .lan#
Accident (nsurance
.lan# >921 1>U::
8>921 -*uity 2und#
8>921 +I. 300 2und
ABN AMRO
.ran"*in Te)p*eton
2+ (ndia :alanced 2und#
2ranlin (ndia
Ipportunities 2und
Pru$entia* ICICI
8.rudential (1(1(
-merging /tar 2und#
.rudential (1(1(
(nfrastructure 2und
8.rudential (1(1(
9ynamic 2und#
.rudential (1(1( .ower
2und# 8.rudential (1(1(
-merging /tar 2und
Re*ian&e
80eliance Arowth 2und#
0eliance -*uity 2und#
0eliance Fision fund
80eliance Arowth 2und
UTI U+( (nfrastructure 2und
IDBI (9 2le&i nd
DSP Merri** /%n&'
89/.6@ +(A-0 2und#
9/.6@ Ipportunities
2und
89/. 6errill @ynch
+(A-0 2und
Bir*a
:irla Ad)antage 2und :irla /un @ife
-ndowment K pension
.lan
.i$e*it% 2idelity -*uity 2und
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Deuts&'e
ING D%s%a
Stan$ar$ C'artere$
*ote+ ) indicates that percentages of investment among customers are more
=8 In!este$ t'rou#' ot'er .inan&ia* Institutions or Ban"s
Options No8 o( Custo)ers Per&enta#e
@(1( 33 11=
U+( :an 1% $=
(1(1( :an K icicidirect.com <3 1"=
Gota /ecurities 9 %=
(ndiabulls ' 4=
/harehan 4 3=
.ersonal Agent 43 31=
.ost Iffice 46(/7 ' 4=
Tota* 6>A @AB
Interpretation
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The percentage of in!estment made through others apart form ,'-+ .ank
is A47. 6ut of these" customers prefer most through their Personal #gent"
I+I+I .ank < icicidirect.com and to put money in %I+I.
98 Custo)ers $ea*in# 0it' ot'er 2an"s apart (ro) HD.C Ban"
Pri!ate Ban"s in In$ia B o( Dea*in#
:an of 0ajasthan
:harat I)erseas :an %=
1atholic /yrian :an
1enturion :an of .unjab
9hanalashmi :an
2ederal :an %=
(1(1( :an <%=
(9 :an 10=
(ndus(nd :an %=
(,A Fysya :an %=
!ammu K Gashmir :an
Garnataa :an
Garur Fysya :an
Gota 6ahindra :an 10=
/ 1ommercial and
(nternational :an
/outh (ndian :an
United ;estern :an
U+( :an 30=
D-/ :an %=
.orei#n Ban"s in In$ia B o( Dea*in#
A:,BA60I :an %=
Abu 9habi 1ommercial :an
@td.
American -&press :an @td
:,. .aribas
1itiban 30=
9:/ :an @td
Nationa*iLe$ Ban"s in
In$ia
B o( Dea*in#
Allahabad :an %=
Andhra :an
:an of :aroda %=
:an of (ndia %=
:an of 6aharashtra
1anara :an 3=
1entral :an of (ndia %=
1orporation :an %=
9ena :an
(ndian :an 3=
(ndian I)erseas :an %=
Iriental :an of 1ommerce
.unjab and /ind :an
.unjab ,ational :an %=
/tate :an of :ianer K !aipur
/tate :an of >yderabad
/tate :an of (ndia 4/7 40=
/tate :an of (ndore
/tate :an of 6ysore 4=
/tate :an of .atiala
/tate :an of /aurashtra
/tate :an of +ra)ancore
/yndicate :an 1=
U1I :an 1=
Union :an of (ndia
United :an of (ndia 1%=
Fijaya :an
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9eutsche :an %=
>/:1 @td <0=
/tandard 1hartered :an 40=
Interpretation
These are the following banks in which the customers are dealing with their
seed capital apart from ,'-+ .ank. The banks are being segregated into
three different types according their nature
!. -ationali/e0 (an)$ of In0ia
2. "ri1ate (an)$ in In0ia
. Forei2n (an)$ in In0ia
The percentage has been calculated differently on three different
types of banks as because customers banking with Pri!ate or -oreign banks
might ha!e an #ccount in NationaliCed banks also.
-rom the abo!e chart it can be assumed that major percentages of
customers are dealing with (tate .ank of India in NationaliCed .anking
(egment@ with I+I+I .ank in Pri!ate .anking (egment and with (tandard
+hartered .ank in -oreign .anking (egment.
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6A8 Pro$u&ts o( ot'er 2an"s
Sa!in#s
AF&
Current
AF&
.i1e$
Deposit
Cre$it
Car$
Mutua*
.un$s
Insuran&e /o&"er /oan NRE
NRO
AF&
Ot'ers
No8 o(
Custo)ers
Respon$e$
300 300 300 300 300 300 300 300 300 300
B o(
Custo)ers
'a!in# t'e
pro$u&ts
'%= 10= <0= <0= 10= %= 30= '= %= "=
Interpretation
#s the customers are dealing with other banks apart from ,'-+ .ank" these
are the following products offered by those banks and accordingly shown
the percentage of holding the !arious products of these 344 responded
customers.
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668 Reasons (or a!ai*in# t'e (a&i*ities
Options No8 o( Custo)ers Per&enta#e
Aood customized ser)ices <" 1'=
Ild Accounts $0 <%=
1on)enience 3' 14=
,earer to the house <0 1%=
Ipened for /alary A?c 30 10=
-*uity Ad)anced A?c 10 %=
Una)ailability of locer " <=
Tota* 5AA 6AAB
Interpretation
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The customers ha!e depicted some important reasons of a!ailing the
aforementioned facilities from other banks. 6ne of the important reasons is
that they are maintaining an 6ld #ccount with other banks before becoming
a customer of ,'-+ .ank.
658 .requen&% o( transa&tion o( PB &usto)ers 0it' ot'er 2an"s
Options No8 o( Custo)ers Per&enta#e
0egularly 100 %0=
Iften "0 <0=
/ometimes <0 1%=
Iccasionally 10 %=
,e)er 0 0=
Tota* 5AA 6AAB
Interpretation
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.eing a customer of other banks" ob!iously they will do their transaction
regularly as >47 says yes. ;47 and 8>7 replied often and sometimes
respecti!ely due to some constraints.
6<8 Custo)er enIo%in# e1tra 2ene(its t'rou#' ot'er 2an"s
Apart from the facilities pro)iding by the >921 :an# the customers are also
enjoying e&tra benefits while being a part of other bans. +he benefits are enumerated as
below5
? Aood personalized ser)ice
? +aes care of the problems with helping hand by the ban representati)es
? 2acility of sa)ing money into ban through 0ecurring 9eposit
? 9oorstep baning through easy a)ailability of A+6 of concerned ban
? Unlimited withdrawal from other ban A+6 without any withdrawal charges
? Aets the facility of e)ening baning
? 1ustomers ha)ing an account with (1(1( :an gets baning hours from ' a.m to
' p.m
? Aetting the facility of .assboo instead of *uarterly statement
? U+( :an pro)ided the customers with total yearly interest credited statement
separately
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? .ro)ide At .ar che*ue for all ind of /a)ings A?c in U+( :an
CONCLUSION
In 1'th 2ebruary# 199%# the first branch of a new ban was inaugurated
called >921 :an. (t was promoted by (ndiaCs premier housing finance
institution. ,ow >921 :an is being listed as one of the leading pri)ate
bans in (ndia.
>921 :an began its operations with the mission of becoming a
;orldBclass (ndian :an# and the endea)our of fulfilling all the financial
re*uirements of the customers under one roof. ;ith this determination
>921 :an came into the maret to satisfy the needs of the profitable
customers by pro)iding products and ser)ices in most efficient way. ;ithin
the time span of 10 years the ban has made a great impact upon the
customers regarding their ser)ice and support they e&tended in enhancing
the customers profitability and apart from this# ban itself mared its
glorified path towards the success.
;ithin a short inter)al ban use used to e&periment itself by
introducing new product or new concept of mareting strategy. 0ecently
they came up with an inno)ati)e concept of 1lassic .ortfolio .rogramme
under which the customers will be getting certain benefits to further enhance
their profitability. +ill# this programme has been really a triumph for the
>921 ban as far as the baning part is concerned and it also helped in
creating a good image upon the customers.
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SUGGESTIONS
Aood relationships are pi)otal to business success. ;ith this organizational objecti)e
>921 :an tries to maintain a fine balance between high le)el of customer satisfaction
and the *uality of ser)ice pro)ided by them but it lacs in some sense. +hese are the
following suggestions that should be taen care of while upgrading the *uality of ser)ice
by which they can able penetrate more classic customers into portfolio management.
Suggestions an& $e(ommen&ations:
? +he ban should tae initiati)e in calling up the e&isting classic based
customers and try to sol)e the problems that they are facing relating to
the ser)ice *uality.
? (nspite of phenomenal success of :C*assi& Port(o*io Pro#ra))e; of
>921 ban# still lot of customers are unaware of the aforementioned
programme and this should be taen care off in order to generate more
profitable customers.
? +he ban must approach the customers personally in order to share
more of their seed capital.
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PART - II
COMPARATIDE STUDE O.
DARIOUS DA/UE ADDED
SERDICES PRODIDED BE HD.C
BANH IN COMPARISON -ITH
OTHER BANHS
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RESEARCH OBECTIVE
+he objecti)e of the project is enumerated as below5
? To #et a &o)parati!e ana*%sis o( !arious !a*ue a$$e$ ser!i&es
pro!i$e$ 2% HD.C in &o)parison to ot'er Pri!ate Ban"s8
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RESEARCH
METHODOLOGY
? Resear&' Desi#n7
+he research conducted was analytical in nature.
? Sour&e Co**e&tion O( Data7
+he data that is used for this project is secondary data. All the data are collected
from internet and )arious bans report and records.
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FINDINGS &
INTERPRETATION
68 Tota* Bran&'es in In$ia
Options Tota* Bran&'es
(1(1( :A,G "14
U+( :A,G 4%0
>/:1 :A,G 4<
/+A,9A09 1>A0+-0-9 :A,G '1
1(+( :A,G <9
(,A FD/DA :A,G <$4
(,9U/(,9 :A,G 14%
(9 :A,G 1$9
GI+AG 6A>(,90A :A,G '%
>921 :A,G %<%
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58 A&&ount Openin# E1perien&e
Options Ti)e ta"en
(or a&&ount
openin#
Ti)e &o))itte$
(or re&eipt p(
-e*&o)e Hit
A&&ount )ateria*
re&ei!e$ 0it'in
(1(1( :A,G 1% J 30 mins $ days $ days
U+( :A,G 10 J 1% mins @ess than $ days $ days
>/:1 :A,G 1% J 30 mins $ days $ days
/+A,9A09 1>A0+-0-9
:A,G
1% J 30 mins 10 days ;ithin 13 days
1(+( :A,G 1% J 30 mins 10 days 10 days
(,A FD/DA :A,G 30 J <0 mins 10 days 1% days
(,9U/(,9 :A,G 10B 1% mins $ days $ days
(9 :A,G 1% J 30 mins 10 days 1% days
GI+AG 6A>(,90A :A,G 1% J 30 mins 10 days 10 days
>921 :A,G $ J 10 mins $ days $ days
Interpretation
#s the table shows that different banks ha!e different timing schedule
regarding the #ccount opening of the customers. ,'-+ .ank showed better
ser!ice in regard to other banks in a manner that it takes A to 84 mins of
initial #ccount opening and the customer recei!es the welcome kit within the
committed time made the bank. Dhile in ETI .ank < (tandard +hartered
.ank the customer does not recei!e the welcome kit within the committed
time.
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<8 Ser!i&e pro!i$e$ 2% Persona* Ban"er
Options
Does PB #reets
ent'usiasti&a**%
po*ite*%
PB area neat
&*ean 0it'
na)e p*ate
!isi2*e
PB response t'e queries
satis(a&tori*%
(1(1( :A,G 4 4 4
U+( :A,G < < <
>/:1 :A,G % % %
/+A,9A09 1>A0+-0-9
:A,G % % %
1(+( :A,G % % 4
(,A FD/DA :A,G < < <
(,9U/(,9 :A,G 3 3 3
(9 :A,G < < <
GI+AG 6A>(,90A :A,G 4 4 4
>921 :A,G % 4 4
Note7 A parameter of % to 1 scale is being set to judge the le)el of effecti)eness. % T :est# < T A)erage# 1 T ;orst
Interpretation
To analyCe the ser!ice rendered by the Personal .anker" a parameter of > to
8 scale is being set to judge the le!el of efficiency and effecti!eness. The
table exhibits that all the banks perform their duty with most efficient way
to sur!i!e in this competiti!e world.
If comparison is made between (tandard +hartered .ank" ,(.+ .ank
and ,'-+ .ank@ these two banks are much more professionaliCed than ,'-+
.ank in terms of ser!ice and on this part bank needs impro!ement.
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>8 Tota* ATMs in In$ia
Options Tota* ATMs
(1(1( :A,G 3300
U+( :A,G 1'91
>/:1 :A,G 1<$
/+A,9A09 1>A0+-0-9 :A,G 1'<
1(+( :A,G 440
(,A FD/DA :A,G 101
(,9U/(,9 :A,G 300 Y 1orrespondence
(9 :A,G <9%
GI+AG 6A>(,90A :A,G "1 Y 1orrespondence
>921 :A,G 1<3<
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?8 Tota* P'one Ban"in# /o&ations in In$ia
Options Tota* P'one Ban"in# /o&ations
(1(1( :A,G <$
U+( :A,G
@ocalized ,o.# but connecting directly to
6umbai
>/:1 :A,G 19
/+A,9A09 1>A0+-0-9 :A,G 4"
1(+( :A,G 3%
(,A FD/DA :A,G 3'
(,9U/(,9 :A,G ,?A
(9 :A,G 4'
GI+AG 6A>(,90A :A,G +oll 2ree ,o. for ,orth (ndia K 0est of (ndia
>921 :A,G 1'9
C8 Net Ban"in# Ser!i&es
Options
Ease o(
Conne&ti!it%
Ran#e o(
Transa&tion
Requests a&tion
ta"en 0it'in
&o))itte$ ti)e
More
e((e&ti!e t'an
ot'er Ban"s
(1(1( :A,G 4 4 < <
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U+( :A,G 4 4 4 4
>/:1 :A,G % % % 4
/+A,9A09
1>A0+-0-9 :A,G % 4 4 4
1(+( :A,G 4 4 4 4
(,A FD/DA :A,G 4 4 < <
(,9U/(,9 :A,G < < < <
(9 :A,G % % 4 <
GI+AG 6A>(,90A
:A,G % % 4 4
>921 :A,G % 4 < <
Note7 A parameter of % to 1 scale is being set to judge the le)el of effecti)eness. % T :est# < T A)erage# 1 T ;orst
Interpretation
6n the part of Net .anking ser!ice" the most efficient banks are ,(.+
.ank" I'.I .ank" and 0otak $ahindra .ank in comparison with ,'-+ .ank
# same parameter of scale is being used to judge to le!el of efficiency and
effecti!eness.
@8 Mo2i*e Ban"in# Ser!i&es
Options
Ease o(
Conne&ti!it%
Ran#e o(
Transa&tion
Requests a&tion ta"en 0it'in
&o))itte$ ti)e
(1(1( :A,G % % 4
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U+( :A,G < < <
>/:1 :A,G % 4 %
/+A,9A09
1>A0+-0-9 :A,G 4 4 4
1(+( :A,G % 4 4
(,A FD/DA :A,G 4 4 4
(,9U/(,9 :A,G ,?A ,?A ,?A
(9 :A,G 4 4 <
GI+AG 6A>(,90A
:A,G 4 < <
>921 :A,G 4 4 4
Note7 A parameter of % to 1 scale is being set to judge the le)el of effecti)eness. % T :est# < T A)erage# 1 T ;orst
Interpretation
In $obile .anking ser!ice" the abo!e table shows that I+I+I .ank" +ITI
.ank and ,(.+ .ank pro!ide better ser!ice in compare to the ser!ice
rendered by ,'-+ .ank.
# same parameter of scale is being used to judge to le!el of
efficiency and effecti!eness.
=8 E1tra Bene(its #i!en to t'e &usto)ers apart (ro) ot'er Ban"s
=ptions Benefits pro'i&e& by the bank
ICICI BANH
i7 6oney 6ultiplier A?c
ii7 @argest networ of A+6s in (ndia
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UTI BANH
i7 .ro)iding 0eward 1ard
ii7 -asy a)ailability of A+6 anywhere in (ndia
HSBC BANH
i7 1ustomers taing loan can enjoy free Aold 1redit 1ard
ii7 2ree >ome :aning
iii7 >/:1 .ower Fintage A?c
STANDARD CHARTERED BANH
i7 2re*uent meeting with customers in 2i)e star hotels
ii7 9istributing gifts and gi)ing pri)ileges to profitable
customers from time to time
CITI BANH i7 .ro)iding 1iti :an !et Airways Aold 1ard
ING DESEA BANH
i7 2ree A+6 transactions with any ban e&cept U
ii7 .ro)iding loan at preferential rate for agricultural
e*uipments
INDUSIND BANH
i7 Gingfisher Airlines ticets at discounted rates.
ii7 6obile +op Up through A+6.
IDBI BANH
i7 /pecial loan for financing (.Is
ii7 1ustomer can open a /aba A?c with minimum balance
of 0s. 3%0
iii7 .ro)iding ;orld 1urrency 1ard for the tourists.
HOTAH MAHINDRA BANH
i7 Gota 1apital 6ultiplier .lan
ii7 Gota -dge /a)ings A?c
HD.C BANH
i7 .repaid 0efilling through A+6
ii7 .ro)iding 021 9omestic A?c to the customers
iii7 -&press loan
i)7 -nhanced -*uiAll ser)ice on demand
98 Pro)otiona* a&ti!ities t'e 2an" usua**% $oes
Options Pro)otiona* A&ti!ities
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Out$oor In$oor
(1(1( :A,G
i7 /ponsoring an e)ent
ii7 Ai)ing Ad)ertisement on
tele)ision regarding baning
information
i7 9isplaying informati)e
posters on the wall
U+( :A,G
i7 1ampaign
ii7 /ponsorship
i7 >anging out the banners
inside the ban premises
>/:1 :A,G
i7 (ndulging in social acti)ities
ii7 9istributing gifts to the
customers
i7 .ro)iding brouchers inside
the ban
/+A,9A09 1>A0+-0-9 :A,G
i7 /ponsoring )arious e)ents
ii7 9o philanthropic acti)ities
iii7 9istributing gifts to the
customers
i7 (nformati)e posters hanging
on the wall
1(+( :A,G
i7 1ontributing funds in
+sunami +ragedy 0elief 2und
ii7 2unding for primary
education
i7 .osters are being put on the
wall of the ban premises and
A+6s
(,A FD/DA :A,G
i7 Ai)ing Ad)ertisement on
tele)ision regarding baning
information
i7 .ro)iding brouchers on
demand
(,9U/(,9 :A,G
i7 /ponsoring social welfare
organizing by ,AIs
ii7 Iffer discount coupons on
certain commodities
i7 Farious information posters
are being displayed in front of
+eller counter
(9 :A,G
i7 2inanced in 2ilm industry to
promote their :rand name
ii7 Ai)ing Ad)ertisement on
tele)ision regarding baning
information
i7 -asy a)ailable of brouchers
inside the ban
GI+AG 6A>(,90A :A,G
i7 9o philanthropic acti)ities i7 9isplaying informati)e
posters on the wall and A+6s
>921 :A,G
i7 Ai)ing Ad)ertisement on
tele)ision regarding ban
information
ii7 /ponsoring )arious e)ents
iii7 Iffer discount coupons on
certain commodities
i7 >anging out the )arious
informati)e posters inside the
ban premises specially in
front of +eller counter
CONCLUSION
+he (ndian financial sector underwent a radical change during the nineties to
the beginning of 31
st
century. 2rom the relati)ely closed and regulated
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en)ironment in which agents had to operate earlier# the sector was opened up
as part of the efficiency enhancing structural policies to bring about high
sustainable longBterm growth of the economy. +he baning sector was also
not an e&ception to this rule. 6ore specifically pri)ate sector bans and
foreign bans lie ICICI Ban"+ UTI Ban"+ Stan$ar$ C'artere$ Ban"+
HSBC Ban"+ HD.C Ban"+ CITI Ban" etc differ significantly in
performance# performance being measured in terms of profitability#
efficiency in portfolio management and operating efficiency. +he
en)ironment was made friendlier for domestic pri)ate sector and foreign
bans too. As a result# many pri)ate players entered the baning sector
gi)ing rise to the heightened competiti)e pressure. Amongst them >921
:an showed its de)elopment in all respect immensely for the last ten years.
:eing aware of the current economic en)ironment is challenging# with
persistent sluggishness in industrial production and an o)erall dampening of
business confidence. +he rapid dismantling of trade barriers# decline in
se)eral international commodity prices and intensifying global competition
ha)e e&posed the (ndian corporate sector to greater ris. (n such an
en)ironment# >921 :anCs growth ha)e been dri)en by enhanced customer
ac*uisition# geographic e&pansion and new product introductions as well as
increased penetration of the e&isting customer base by enlisting on classic
portfolio programme.
(t could be belie)ed that >921 :an is well positioned in this respect
and should be able to achie)e healthy growth in long run both in terms of
business )olumes and profitability.
BIBLIOGRAPHY
? Resear&' Met'o$o*o#% 5 1. 0. Gothari.
? Statisti&a* Met'o$ 5 9r. /. .. Aupta.
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? .inan&ia* Mana#e)ent 5 (. 6. .andey.
? 9ourna*s 5 Annual 0eport of >921 :an 4300%B0"7
Annual 0eport 43004B0%7.
? -e2sites 5 www.google.co.in
www.hdfcban.com
www.hsbc.co.in
www.standardchartered.co.in
www.idbiban.com
www.iciciban.com
www.otamahindraban.com
www.citiban.co.in
www.ing)ysyaban.com
www.indusindban.com
www.utiban.com
www.information.com
ANALYSIS OF THE FINDINGS
? Awareness of 1lassic .ortfolio .rogramme among the customers is
)ery low which counts only 4%= and 40= of the respondent nows
about the facilities pro)ided by the ban under this programme.
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? %0= of the customers are relati)ely satisfied with the ser)ice rendered
by >921 :an.
? About $0= of the 1lassic customers did not in)est their money
through >921 :an due to some reasons.
? 6a&imum customers ha)e in)ested their seed capital through other
financial institutions lie @(1(# (ndiabulls# .ost Iffice 46(/7 and
/harehan etc.
? +he 1lassic .ortfolio customers are also ha)ing their account with
other :ans due to following reasons lie old account# opened for
salary a?c# good customized ser)ices# nearer to the house etc.
ANALYSIS OF THE FINDINGS
? 0egarding the total :ranches in (ndia# >921 :an is in the second
position 4%<% branches7 among these ten pri)ate bans. +he first
position is occupied by (1(1( :an with total branches of "14.
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? >921 :an showed a better ser)ice regarding account opening as it
taes $B10 mins for initial account opening and customers recei)ed the
welcome it within the committed time.
? (n total A+6s in (ndia# (1(1( :an and U+( :an leads the way
whereas >921 :an raned as third position.
? (n total .hone :aning in (ndia# >921 :an clearly leads the
position with 1'9 phone baning locations and the second position is
occupied by (9 :an.
CONTENTS
C'apter7 6
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? O!er!ie0 o( Ban"in# Se&tor
C'apter7 5
? HD.C Ban"
a8 Histori&a* Pre*u$e
28 Group Me)2ers
&8 Or#aniLationa* Stru&ture
i8 Co)position o( HD.C Ban"+ Go*par" Bran&' (Ho*"ata)
$8 Mana#e)ent St%*e
e8 Distri2ution Net0or"
(8 Capita* Stru&ture
#8 Mission an$ Business Strate#%
'8 Te&'no*o#%
i8 Ris" Mana#e)ent an$ Port(o*io ,ua*it%
I8 Hu)an Resour&es
"8 Se#)entation In(or)ation
*8 Pro$u&ts an$ Mar"et
)8 Main Co)petitors
C'apter7 <
? HD.C Ban" 4 Operations
a8 Business Se#)ent Up$ate
28 .inan&ia* Hi#'*i#'ts
C'apter7>
? A&'ie!e)ents
a8 Cre$it Ratin#
C'apter7 ?
? HD.C Ban" 4 S-OT Ana*%sis
a8 Stren#t's
28 -ea"nesses
&8 Opportunities
$8 T'reats
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C'apter7C
? Port(o*io Penetration O( HD.C Ban"
!< +art 0: Cross Selling to Classi( +ortfolio Customers
a8 Intro$u&tion
28 Resear&' O2Ie&ti!es
&8 Resear&' Met'o$o*o#%
$8 .in$in#s an$ Interpretation
e8 Ana*%sis o( t'e (in$in#s
(8 /i)itations
#8 Con&*usion
'8 Su##estions
B< +art 00: Comparati'e Stu&y of >arious >alue !&&e& Ser'i(es pro'i&e& by
HDFC Bank in (omparison with =ther Banks
a8 Resear&' O2Ie&ti!es
28 Resear&' Met'o$o*o#%
&8 .in$in#s an$ Interpretation
$8 Ana*%sis o( t'e (in$in#s
e8 Con&*usion
C'apter7 @
? Anne1ure
C'apter7 =
? Bi2*io#rap'%
QUESTIONNAIRE FOR THE
CUSTOMERS
Na)e7
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Custo)er ID7
Please mar' (- .here applica&le+
1. ;hat products of >921 :an are you a)ailingX
i7 /a)ings A?c ii7 1urrent A?c iii7 2i&ed 9eposit
i)7 1redit 1ard )7 6utual 2und )i7 (nsurance
)ii7 @ocers )iii7 @oan i&7 ,0- K ,0I A?c
3. Are you aware that you ha)e been enlisted as a classic portfolio customer of our banX
i7 Des ii7 ,o
<. :eing a classic portfolio customer# are you aware of the facilities that our ban is pro)idingX
i7 Des ii7 ,o
2acilities5
Z2ree Aold 1redit 1ard# 2ree (nternational 9ebit card# reduced charges for locers and demat A?c#
opening Hero :alance A?c for your family members# better 2ore& rates# preferencial loan rates#
personalized in)estment ad)ice and ser)ices.[
4. Are you satisfied with the ser)ice that our ban is pro)idingX
i7 Absolutely ii7 0elati)ely iii7 /omewhat i)7 ,ot at all.
%. >a)e you e)er in)ested through >921 :anX
i7 Des ii7 ,o
In!este$ In EesFNo S&'e)es
6utual 2unds
(nsurance
/(.
". Any means of in)estment you did through others financial institutions apart from >921 :anX
\\\\\\\\\\\\\.....................................................................................................
\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\.
$. ;hyX
0eason5\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\
'. Apart from >921 :an what other bans are you dealing withX
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i7 ii7 iii7 i)7
9. ;hat products of other bans are you ha)ingX
i7 /a)ings A?c ii7 1urrent A?c iii7 2i&ed 9eposit
i)7 1redit 1ard )7 6utual 2und )i7 (nsurance
)ii7 @ocers )iii7 @oan i&7 ,0- K ,0I A?c
10. ;hy do you a)ail the aforementioned products from other bansX
0eason5\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\..
11. >ow often you do your transaction with other bansX
i7 0egularly ii7 Iften iii7 /ometimes i)7 Iccasionally )7 ,e)er.
13. ;hat e&tra benefits are you getting while being a customer of other bansX
i7 ii7 iii7 i)7
doc_941360119.doc
Until the early 1990’s the role of financial system was primarily restricted to the function of channelizing resources from surplus to deficit sectors.
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HDFC BANK
Until the early 1990’s the role of financial system was primarily restricted to the function
of channelizing resources from surplus to deficit sectors. Although 14 major commercial
bans were nationalized in !uly 19"9# regional rural bans were set up in 19$% and
another si& commercial bans were nationalized in 19'0# the baning sector in (ndia
suffered form lac of competition# low capital base# low producti)ity# minimal role of
technology# wea prudential standards and low *uality of ser)ice. As a result# bans
suffered from poor asset *uality and low profitability and bans functioned in an
o)erprotected en)ironment. +herefore# when economic reforms were introduced in
)arious sectors of the economy in 1991 under the ,ew -conomic .olicy# se)eral reforms
were introduced in the baning sector also.
/ubse*uent to the 0eport of the 1ommittee on 2inancial /ystem# 1993
41hairman5 6. ,arasimham7 reforms in the baning sector focused mainly on enabling8
and strengthening measures. 9uring the second phase of reforms in the baning sector#
which were introduced on the recommendations of the 1ommittee on :aning /ector
0eforms# 199' 41hairman5 6. ,arasimham7 greater stress was placed on structural
measures and impro)ement standards of disclosure and le)els of transparency# so as to
align (ndian standards with best international practices. As a conse*uence of the )arious
measures undertaen by the go)ernment# we find that an e&tensi)e baning networ has
been established# bans ha)e contributed a lot to increase in sa)ings and (ndian :aning
/ystem is no longer confined to metropolitan cities and large towns but it is spread out to
remote corner of the country. ;ith a networ of about "'#<<0 branches# of which 4$= are
located in rural areas and aggregate deposits of about 0s. 13#'0#%"$ crores and ban
credit of 0s. $#3%#<"' crores# (ndian baning is one of the largest# if not the largest# in the
world. 9uring the last decade# both the nationalized bans and the pri)ate sector bans
ha)e grown but pri)ate sector bans ha)e shown a much better standard in terms of
different baning parameters. >921 :an is one such ban# which has shown
tremendous progress.
8 -nabling measures were designed to create an en)ironment where financial intermediaries could respond optimally to
maret signals on the basis of commercial consideration
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HDFC BANK – A HISTORICAL
PRELUDE
>921 :an has been promoted by the >ousing 9e)elopment 2inance 1orporation#
which is (ndia’s premier >ousing 2inance 1ompany and has a sound trac record. /ince
its inception in 19$$# >921 has maintained a consistent and healthy growth in its
operations which is e)idenced by the fact that its loan appro)als ? sanctions and loan
disbursements ha)e been increasing year after year. +he outstanding housing loans of the
>921 ha)e increased from 0s. 39.' crores as on <1
st
6arch 19'1 to 0s. 1#$3".9 crores at
the end of 6arch 1991# to 0s. 1<#334.$ crores at the end of 6arch 3001 and further to 0s.
1$#1"9.3 crores at the end of 6arch 3003. +he corporation continues to remain a maret
leader and its loan portfolio co)ers more than a million dwelling units. >921 has
de)eloped significant e&pertise in retail mortgage loans for different maret segments#
has a large corporate client base and has a sound maret reputation. ,aturally# >921 was
ideally placed to promote a ban in the (ndian en)ironment.
Under the liberalization measures adopted under the ,ew -conomic .olicy#
impro)ement in the efficiency of financial intermediaries has been at the core of the
reform process. (n order to pro)ide greater choice to customers and promote competitions
the 0eser)e :an of (ndia permitted the entry of new pri)ate bans and more liberal
entry of foreign bans. +he >921 was amongst the first to recei)e in principle the
appro)al of the 0
to set up a ban in the pri)ate sector. +herefore# >921 :an @td.was incorporated in August 1994 with its registered office in 6umbai. +his ban
commenced its operation as a scheduled commercial ban in !anuary 199%. /ince its
inceptions# the >921 :an has been able to achie)e healthy growth across )arious
operating and financial parameters and has focused on four core )alues5
Customer focus, Operational excellence, Product leadership and the people. (t has tried
to fulfill these )alues through open and transparent wor culture# pro)iding opportunities
to tae on challenging assignments and empowering its employees to tae decisions.
An important e)ent too place which added significant )alue to the >921 :an
in terms of increased branch networ# enhanced customer base# silled manpower and
le)erage alternati)e deli)ery channels. +his e)ent was the amalgamation of +imes :an
@imited 4.romoted by :ennett 1oleman and 1ompany ? +imes Aroup7 with the >921
:an @td with effect from 2ebruary 3"# 3000. According to the scheme of amalgamation#
shareholders of +imes :an recei)ed one share of >921 :an for e)ery %.$% shares of
+imes ban.
After the merger of the +imes ban with >921 :an# the >921 :an has been
e&panding its networ with passage of time.
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CAPITAL STRUCTURE
+he authorized capital of >921 :an is 0s.4%0 crores 40s.4.% billion7. +he paidBup
capital is 0s.<11.9 crores 40s.<.1 billion7 as at <1
st
6arch 300". +he >921 Aroup holds
33.1= of the banCs e*uity# 2oreign (nstitutional
estors 42((s7 roughly holds <1.<=and about 19.4= of the e*uity by the American 9epository /hares 4in respect of the
banCs American 9epository /hares issue7. +he 2(( holders include /tandard life
estment 44.3$=7# (ndian .ri)ate -*uity 2und 41.%'=7 and /mall 1ap ;orld 2und44=7 and !.. 6organ has a stae of %.4'=. +he balance amount of the ban is held by
about 190#000 shareholders. +he shares of the >921 :an are listed on both 6umbai
/toc -&change 4:/-7 and at the ,ational /toc -&change 4,/-7. +he banCs American
9epository /hares are listed on the ,ew Dor /toc -&change 4,D/-7 under the symbol
E>9:E.
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DISTRIBUTION NETWORK
>921 :an is head*uartered in 6umbai. +he :an at present has an en)iable networ
of o)er %<% branches spread o)er 33' cities against 49% branches in 31$ cities in !une
300% across (ndia. All branches are lined on an online realBtime basis. 1ustomers in o)er
1'9 locations are also ser)iced through .hone :aning.
+he :anCs e&pansion plans tae into account the need
to ha)e a presence in all major industrial and
commercial centres where its corporate customers are
located as well as the need to build a strong retail
customer base for both deposits and loan products.
:eing a clearing ? settlement ban to )arious leading
stoc e&changes# the :an has branches in the centres
where the ,/- ? :/- ha)e a strong and acti)e member base.
+he :an also has a networ of about o)er
1<3<Bnetwored A+6s across these cities. 6oreo)er#
>921 :anCs A+6 networ can be accessed by all
domestic and international Fisa ? 6aster1ard# Fisa
-lectron ? 6aestro# .lus ? 1irrus and American
-&press 1redit ? 1harge cardholders.
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BRANCH NETWORK – CITIES COVERED
1". 1oimbatore %4. .atiala
1$. 9ahej %%. .hagwara
1'. 9aman %". .onda
19. 9elhi %$. .une
30. 2aridabad %'. 0aipur
31. Ahaziabad %9. 0ajot
33. Aurgaon "0. 0ajpura
3<. >yderabad "1. 0anchi
34. (ndore "3. 0opar
3%. !aipur "<. /ecunderabad
3". !allunder "4. /iliguri
3$. !amshedpur "%. /il)assa
3'. !odhpur "". /urat
39. Ganpur "$. +hane
<0. Gapurthala "'. +richur
<1. Garad "9. +richy
<3. Ghanna $0. +ri)andrum
<<. Golhapur $1. Udaipur
<4. Golata $3. Fasai
<%. Gota $<. Fasco
<". Gottayum $4. Fijayawada
<$. @ucnow $%. Firar
<'. @udhiana $". Fishaapatnam
$$. Hirapur
1. Agra <9. 6adurai
3. Ahmedabad 40. 6angalore
<. Ambala 41. 6argao
4. Amritsar 43. 6ohali
%. Aurangabad 4<. 6umbai
". :angalore 44. 6ysore
$. :aroda 4%. ,agpur
'. :haruch 4". ,ashi
9. :ha)nagar 4$. ,a)i 6umbai
10. :hopal 4'. ,a)sari
11. :hubaneshwar 49. ,oida
13. 1alicut %0. .allaad
1<. 1handigarh %1. .anchula
14. 1hennai %3. .anjim
1%. 1ochin %<. .atalganga
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ORGANIZATIONAL
STRUCTURE
General Information:
,ame of the organization 5 >921 :an @td.
Dear of -stablishment 5 August 1994
1hairman 5 6r. !agdish 1apoor
6anaging 9irector 5 6r. Aditya .uri
6ain /er)ice 5 :aning related ser)ice
0egistered Iffice 5 >921 :an >ouse
/enepati :apat 6arg#
@ower .arel#
6umbai J 400 01<
+el5 033 ""%3 1000
;ebsite 5 www.hdfcban.com
0e)enue 5 0s. <#""9.'3 @acs
,o. of 1ustomers of >921 :an 5 9.% 6illion
CHAIRMAN
MANAGING
DIRECTOR
GROUP
HEADS
BUSINESS
HEADS
DIRECTORS
(9)
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HDFC Bank Senior Management Team
Aroup >eads
A 0ajan Operations
Abhay Aima Equities Pri!ate Ban"in#
Ashish .arthasarthy Tra$in#
:harat /hah Depositor% Mer&'ant ser!i&es
1 , 0am In(or)ation Te&'no*o#%
A /ubhramaniam Au$it+ Co)p*ian&e+ Ser!i&e ,ua*it%
>arish -ngineer -'o*esa*e Ban"in#
Gaizad :arucha Cre$it Mar"et Ris"
6andeep 6aitra Hu)an Resour&es
.aresh /uhthanar Cre$it Mar"et Ris" HR
.ralay 6ondal Unse&ure$ Pro$u&ts
/amir :hatia Corporate Ban"in#
/udhir !oshi Treasur%
Finod Dennemadi .inan&e+ A$)inistration+ /e#a*
:usiness >eads
Ashima :hatt SCM ECG
Asho Ghanna T0o -'ee*ers E1press /oans
:ha)esh Ha)eri TBG Operations
1hitra .andeya /ia2i*ities Pro$u&t Group
A F Aopalarishnan In(or)ation Te&'no*o#%
!immy +ata Corporate Ban"in# 3 -est
6amta 1hhabra Treasur% A$!isor% Group
6ana)jeet /ingh Auto+ Co))er&ia* Transportation
Hea*t' Care
, / Gishore Gumar Corporate Ban"in# 3 Sout'
,a)in .uri Bran&' Ban"in# 3 -est
,eena /ingh Bran&' Ban"in# 4 Nort' 5
,itin 0ao Equities Pri!ate Ban"in#
. 0a)indranath .ai Treasur%
. F Anantharishnan Sto&" E1&'an#e+ Correspon$in# Ban"in#
0ahul :hagal Bran&' Sa*es+ HN-+ P'one Ban"in#
Mar"et
0ajendra /eghal Corporate Ban"in# 4 Nort'
/ashi !agdishan .inan&e A$)inistration
/eshan 0amarishnan Bran&' Ban"in# 4 Nort' 6
/hyamal /a&ena Bran&' Ban"in# 4 Nort'+ Sout' East
/urindra /ingh 1hawla Bran&' Ban"in# 3 Sout'
F 1harapani Au$it
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MANAGEMENT STYLE
C'air)an7 Mr8 9a#$is' Capoor Mana#in# Dire&tor7 Mr8 A$it%a Puri
6r. !agdish 1apoor too o)er as the banCs 1hairman in !uly 3001. .rior to this# 6r.
1apoor was a 9eputy Ao)ernor of the 0eser)e :an of (ndia.
+he 6anaging 9irector# 6r. Aditya .uri# has been a professional baner for o)er
3% years and before joining >921 :an in 1994 was heading 1itibanCs operations in
6alaysia.
+he :anCs
ard of 9irectors is composed of eminent indi)iduals with a wealthof e&perience in public policy# administration# industry and commercial baning. /enior
e&ecuti)es representing >921 are also on the
ard. /enior baning professionals with substantial e&perience in (ndia and abroad head
)arious businesses and functions and report to the 6anaging 9irector. Ai)en the
professional e&pertise of the management team and the o)erall focus on recruiting and
retaining the best talent in the industry# the ban belie)es that its people are a significant
competiti)e strength.
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MISSION AND BUSINESS
STRATEGY
>921 :an’s mission is to be :a -or*$ C*ass In$ian Ban";# benchmaring oursel)es
against international standards and best practices in terms of product offerings#
technology# ser)ice le)els# ris management and audit K compliance. +he objecti)e is to
sound customer franchises across distinct businesses so as to be a preferred pro)ider of
baning ser)ices for target retail and wholesale customer segments# and to achie)e a
healthy growth in profitability# consistent with the :an’s ris appetite. +he ban is
committed to do this while ensuring the highest le)els of ethical standards# professional
integrity# corporate go)ernance and regulatory compliance. >921 ban’s business
philosophy is based on four core )alues J Iperational -&cellence# 1ustomer 2ocus#
.roduct @eadership and .eople.
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HDFC Bank’s business strategy emphasizes the following:
? (ncrease our maret share in (ndia’s e&panding baning and financial ser)ices
industry by following a disciplined growth strategy focusing on balancing *uality
and *uantity and on deli)ering high *uality customer ser)icesL
? @e)erage our technology platform and open scaleable systems to deli)er more
products to more customers and to control operating costsL
? 6aintain high standards of asset *uality through disciplined credit ris
managementL
? 9e)elop inno)ati)e products and ser)ices that attract our targeted customers and
address inefficiencies in the (ndian financial sectorL
? 1ontinue to de)elop products and ser)ices that reduce our cost of fundsL
? 2ocus on high earnings growth with low )olatility.
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TECHNOLOGY
>921 :an operates in a highly automated en)ironment in terms of information
technology and communication systems. +he strength of a ban is judged by its
infrastructure and its processes. At >921 :an# in)estments ha)e been made right from
inception# to create a robust technology platform i.e. seamlessly integrated with
centralized and audited processes. +his has enabled the >921 :an to e&pand rapidly
and grew many folds while maintaining acceptable ser)ice standards. ;ellBdocumented
procedures# high le)els of automation# intensi)e training of personnel ha)e enabled the
ban to impro)e the reliability of its operational processes. (/I 9003 certifications of its
cash management# retail centralized processing and custody and depository operations are
indicati)e of the ban’s achie)ement in this regard.
+he :an has made substantial efforts and in)estments in ac*uiring the best
technology a)ailable internationally# to build the infrastructure for a worldBclass ban. (n
terms of software# the 1orporate :aning business is supported by 2le&cube# while the
0etail :aning business by 2inware# both from iBfle& /olutions @td. +he systems are
open# scaleable and webBenabled. +he technology adopted at the >921 ban has also
enabled it to offer inno)ati)e products and ser)ices with greater con)enience and at an
affordable price. (t has offered products to match the needs of e)ery customer J corporate
or indi)idual# borrower or in)estor. All the banCs branches ha)e online connecti)ity#
which enables the ban to offer speedy funds transfer facilities to its customers. 6ultiB
branch access is also pro)ided to retail customers through the branch networ. +he ban
maes a)ailable more than 40 products to ser)e the needs of its growing customers. +heir
customers ha)e access to their accounts as and when they need it through the internet#
mobile# Automated +eller 6achines 4A+6s7# .hone baning# 9ebit card and through
personal )isit into a branch. Almost '0= of customers are ser)iced through the nonB
branch channels J A+6s# .hone baning# ,et baning and 6obile baning. :ans A+6
networ had e&panded to 1<3< by the end of 6arch# 300".
+he :an has prioritized its engagement in technology and the internet as one of
its ey goals and has already made significant progress in webBenabling its core
businesses. (n each of its businesses# the :an has succeeded in le)eraging its maret
position# e&pertise and technology to create a competiti)e ad)antage and build maret
share. ;ith this significant infrastructure e&pansion# the ban’s customers ha)e e)en
greater con)enience and choice in dealing with the ban J !ny time" any where" any
how#.
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RISK MANAGEMENT &
PORTFOLIO QUALITY
0is is integral to almost e)ery aspect of the baning business and sound ris
management and ris J rewards trade offs are critical to the ban’s success. (t is well
accepted that re)enues that ban earn# relate to a large e&tent to the riss the ban accept.
:usiness and re)enue growth therefore# ha)e to be weighed in the conte&t of the riss
implicit in the ban’s business strategy. ;hile the ban is e&posed to )arious types of
ris# the most important amongst them are credit ris# maret ris 4which includes
li*uidity ris and price ris7 and operational ris. +he identification# measurement#
monitoring and management of riss remain a ey focus area for the ban. 2or credit ris#
distinct policies and processes are in place for the wholesale and retail asset businesses.
2or wholesale credit e&posures# management of credit ris is done through target maret
definition# appropriate credit appro)al processes# ongoing postBdisbursement monitoring
and remedial management procedures. In the other hand .ortfolio di)ersification
remains ey# particularly gi)en the )olatility in the business en)ironment and facilitates
ris management. (n the retail asset businesses# the credit cycle is managed through credit
policy definition# appropriate frontBend credit buying# operations and collection processes
enable the management of ris on a portfolio basis for different products and customers
segments.
+he 0is monitoring 1ommittee of the board monitors the ban’s ris
management policies and procedures and re)iews portfolio composition and impaired
credits. 2rom an industry
concentration perspecti)e# as
of march <1# 300"# the core
retail portfolio constituted
41.<= of total customer
assets. +he large industry
e&posures included the share
of automobiles at 10.$=#
transportation at 9."=#
agriculture at <.0= hea)y
engineering at <.4= and
in)estment companies at 3.$=
of customer assets.
40s. @acs7
Aross
@oans
= to
Aross
@oans
0etails J -&cept where otherwise
classified 1%'$'9' 41.<=
Automobiles 409$0< 10.$=
+ransportation <"'41" 9."=
0etail +rade 14<%$< <.$=
-ngineering 1390$3 <.4=
Agriculture 11%%9$ <.0=
,:218 ?
estment 1ompanies 104<0< 3.$=Ithers M 3= of Ad)ances
439 industries7 9'3"9% 3%."=
Tota* <=>65?@ 6AA8AB
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8 ,:215 ,on :aning 2inancial 1ompanies
+he wellBdi)ersified nature of the portfolio is e)idenced by the fact that 39 industries
account for 3= or less of the ban’s customer asset portfolio. As of 6arch <1# 300"# the
ban’s ratio of gross nonBperforming assets 4,.As7 to total customer assets was 1.1$= as
against 1.4$= as of 6arch <1# 300% and 1.%0= at the end of 6arch 3004.
+here has been an increase in nonBperforming assets8 4,.As7 in absolute terms
during the year. (ncreases in ,.As during the year were primarily related to
delin*uencies in )arious retail loan products. +hese delin*uencies and ,.As were within
the e&pected le)els for each of the retail asset products gi)en the seasoning of the retail
portfolio. ,et nonBperforming assets 4gross nonBperforming assets less specific loan loss
pro)isions# interest in suspense and -1A1 claims recei)ed7 were 0.44= of net ad)ances
and 0.<"= of customer assets as of 6arch <1# 300" as against 0.34= and 0.30=
respecti)ely as of march <1# 300% reflecting the higher proportion of retail loans in the
ban’s loan boo and the changing mi& of the retail loan portfolio.
+he ban continues to ha)e a policy of creating general pro)isions upfront based
on estimated portfolio losses for its major retail loan product programs against which
specific pro)isions are setBoff as the portfolio ages and ,.As surface. As on 6arch <1#
300"# total general loan loss pro)isions were 0.%= of the standard ad)ances which was
abo)e the regulatory re*uirement. +owards meeting the re*uirements# the :an launched
a suite of new credit ris rating models during the year for rating entities specific to each
segment in wholesale credit. +o automate the entire computation process for credit under
)arious approaches# the :an is currently implementing a .ortfolio 1redit 0is
6anagement 4.1067 model.
NNNNNNNNNNNNNNNNNNNNNNNNNN
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8 According to the guidelines of 0
# a nonBperforming asset 4,.A7 is one in respect of which the interest and ? or installment of principal has remained due for o)er 90 days.
HUMAN RESOURCES
Ai)en the :an’s significant e&pansion in terms of geographical area as well as in terms
of products and business )olumes# the :an’s staffingBneeds continued to increase during
the year particularly in the retail baning businesses. (n addition# changes in regulatory
guidelines necessitated additions to the staff in respect of sales function for liability
products. /imultaneously# the total number of employees increased from %"$< as of
6arch <1# 3004 to 90<0 as of 6arch 300% to 14'$' as of 6arch <1# 300". +he :an
continues to focus on training its employees on a continuing basis# both on the job and
through training programs conducted by internal and e&ternal faculty. +he :an has
consistently belie)ed that broader employee ownership of its shares has a positi)e impact
on its performance and employee moti)ation. +he :an’s employee stoc option scheme
therefore e&tends to all le)els and so far co)ers around %9= of the employees.
.
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SEGMENTATION
INFORMATION
+he :an operates in three segments5 $etail Banking" %holesale Banking an& Treasury
Ser'i(es. /egments ha)e been identified and reported taen into account# the target
customer profile# the nature of products and ser)ices# the differing riss and returns# the
organization structure and the internal business reporting systems.
+he $etail Banking Segment ser)es retail customers through a branch networ
and other deli)ery channels. +his segment raises deposits from customers and maes
loans and pro)ides ad)isory ser)ices to such customers. 0e)enues of the retail baning
segment are from interest earned on retail loans# net of commission 4net of sub)ention
recei)ed7 paid to sales agents# interest on card recei)ables# gains ? loans from
securitization recei)ables# fees for baning and ad)isory ser)ices and interest earned from
other segments for surplus funds placed with those segments. -&penses of this segment
primarily comprise interest e&pense on deposits# infrastructure and premises e&penses for
operating the branch networ and other deli)ery channels# personnel costs# other direct
o)erheads and allocated e&penses.
+he %holesale Banking Segment pro)ides loans and transaction ser)ices to
corporate and institutional customers. 0e)enues of the wholesale baning segment
consist of interest earned on loans made to corporate customers and the corporate supply
chain customers# in)estment income from commercial paper# debentures and bonds#
interest earned on the cash float arising from transaction ser)ices# fees from such
transaction ser)ices and also trading operations on behalf of corporate customers in debt#
foreign e&change and deri)ati)es segment. +he principal e&penses of the segment consist
of interest e&pense on funds borrowed from e&ternal sources and other internal segments#
premises e&penses# personnel costs# other direct o)erheads and allocated e&penses.
+he Treasury Ser'i(es Segment undertaes trading operations on the proprietary
account# foreign e&change operations and deri)ati)es trading. 0e)enues of the treasury
ser)ices segment primarily consist of fees and gains or losses from trading operations and
net interest earnings on assets held in the treasury des boo.
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+he summary in form of financial report of the three operating segments of the
:an is as follows5
40s. @acs7
Parti&u*ars 5AA?3AC 5AA>3A?
1. Segment $e'enue
a7 0etail :aning %#1$<#'4 <#%<"#3$
b7 ;holesale :aning 3#'%<#<' 3#0%"#<%
c7 +reasury $$<#'9 3'"#'9
Parti&u*ars 5AA?3AC 5AA>3A?
Tota* '#'01#11 %#'$9#%1
@ess5 (nter /egment 0e)enue <#301#$9 3#1<4#"'
In&o)e (ro) operations ?+?99+<5 <+@>>+C=
3. Segment $esults
a7 0etail :aning $01#"$ %30#"4
b7 ;holesale :aning %<$#'$ %<9#<"
c7 +reasury 1<#9$ 4'1#0"7
Tota* Pro(it Be(ore Ta1 1#3%<#%1 9$'#"4
(ncome +a& -&pense 4<'3#$<7 4<1<#<'7
Tota* Resu*t =@A+@= CC?+?C
<. 1apital -mployed
/egment Assets
a7 0etail :aning <'#%$1#09 34#4"9#9<
b7 ;holesale :aning 3'#$90#%< 34#9"3#<4
c7 +reasury %#$<<#94 1#$%"#0<
d7 Unallocated 410#'< 340#$0
Tota* Assets @<+?AC+<9 ?6+>59+AA
/egment @iabilities
a7 0etail :aning <'#%'4#3% 3$#<"1#4"
b7 ;holesale :aning 3"#$1$#9< 14#9<3#<9
c7 +reasury 3#$0'#33 4#4%%#1"
d7 Unallocated 19"#4" 1"0#14
Tota* /ia2i*ities C=+5AC+=C >C+9A9+6?
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PRODUCTS & MARKET
>921 :an caters to a wide range of baning ser)ices co)ering both commercial and
in)estment baning and has offered different types of accounts and cards to meet the
changing needs of a dynamic and comparati)e economy. Among the di)ersified portfolio
products offered by >921 :an some of the important products offered are5
1. /AF(,A/ A11IU,+
3. 1U00-,+ A11IU,+
<. /A@A0D ? 1I0.I0A+- A11IU,+
4. 2(O-9 9-.I/(+/
a7 0egular 2i&ed 9eposit
b7 /uper /a)er Account
c7 /weepBin Account
%. 9-6A+ A11IU,+
". ,0( A11IU,+
$. @IA,
'. 10-9(+ 1A09/
Apart from this >921 :an also sells third party products lie 6utual 2unds#
nds#(nsurance to its retail customers.
? SADINGS ACCOUNT7
:aning should be effortless. ;ith >921 :an# the efforts are rewarding. ,o
matter what a customerCs need and occupational status# the ban has a range of
solutions that are second to none. >921 :an has the perfect solution and also
can recommend products that can augment planning for the future. /a)ings
Accounts are primarily meant to inculcate a sense of sa)ing for the future#
accumulating funds o)er a period of time. (ndi)idual can open an account in their
name or register for one jointly with a family member. +he :an is offering
)arious types of sa)ings account under the retail baning segment.
1. $egular Sa'ings !((ount:
An easyBtoBoperate sa)ings account that allows issuing che*ues# draw
9emand 9rafts and withdraw cash. +he customer can chec up their own
balances with ease form the home or office through ,et:aning#
.hone:aning and 6obile:aning.
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3. )o Frills# Sa'ings !((ount:
(n an effort to mae baning simpler and more accessible for the customers#
:an has introduced the C,o 2rillsC /a)ings Account# which offers all the basic
baning facilities# while maintaining a nominal a)erage *uarterly balance of
only 0s. 3%0. +hrough this account one can access a wide networ of branches
and o)er a thousand A+6s across the country to meet the baning needs. +his
includes 9 free cash withdrawals per *uarter at >921 branch# 1 cash
withdrawal per month at the branch and 3 cash withdrawals per month at
>921 :an A+6s. Additional branch cash withdrawals in the month will be
charged P 0s.%0?B per transaction. 1he*ue deposits at branches will be free of
charge and without any restrictions. +he facility of (nternational 9ebit 1ard
could be enjoy only on re*uest at the branch# which cost 0s. 100?B p.a. for
each applicant.
<. $etail Trust !((ount:
+he 0etail +rust Account is beneficial for +rusts and /ocieties as it earns them
a higher interest as compared to a con)entional 1urrent Account that offers no
interest. >921 :anCs 0etail +rust now offers features and benefits
pre)iously offered only on 1urrent Accounts.
B -njoy free 99Cs payable on >921 ban locations up to a limit of 0s.
%0#000?B per 99# per day.
B A)ail of free Iutstation 1he*ue 1ollection at >921 :an locations
across the country.
B Access the account from any of the branches in the >921 baning
networ.
B A)ail of facilities lie 2ree 34Bhour .hone :aning and ,et :aning and
carry out baning transactions with ease from home or office.
4. *i&’s !&'antage !((ount:
>921 :an offers to an account for the ids# which facilitates to builds up
sa)ings for child’s future. +his needs to open a id’s ad)antage account and
deposits money into the account e)ery month. +he accumulated sa)ings in the
Gids Ad)antage Account can o)er the years help in meeting the childCs needs.
Ipening the account with >921 :an will co)er 2ree (nternational 9ebit
1ard for the ids 4abo)e $ years of age7 with a ma&imum drawing capability
of 0s. 3#%00?B per day. 2ree -ducation (nsurance co)er of up to 0s. 1#00#000?B
for the child with e)ery Gids Ad)antage Account.
%. +ension Sa'ing Bank !((ount:
A .ension /a)ing Account is a Hero :alance Account that accumulates the
pension o)er the years. (t comes with a free (nternational 9ebit card and
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facilities lie .hone and ,et :aning. +his Account can be accessed from any
branch within the >921 networ and the customer can also re*uest for
transfer to another ban. +he >921 ban pro)ides certain ad)antages to
pension sa)ing account holders lie5
B .ension Accounts are opened immediately after ad)ice# and deli)erables
reach in timeB within the 1st and %th of the new month 4in case of -.2I7 and
last day of the month 4in case of 1entral Ao)t. 1i)il .ensions7.
B ,o delays in commencement of pension disbursals 4subject to all the
stipulated terms?conditions are fulfilled by the pensioner7.
B 9ispatch of credit ad)ice containing detailed calculations of the amount
credited each month within 10 days of the payment.
B +imely intimation of re)isions due to changes in rates of .ension or 9earness
Allowance.
". Family Sa'ing ,roup !((ount:
+he 2amily /a)ings Aroup lins together upto four indi)idual >921 :an
accounts 4same family7 under a single group. All the account holders can tae
the ad)antage of the group A)erage Quarterly :alance 4AQ:7 and can operate
their account freely without worrying about the minimum balance.
? CURRENT ACCOUNT7
;ith an >921 :an 1urrent Account# the indi)idual can e&perience the freedom
of multiBcity baning. +his will enhance the power of multiBlocation access to
current account from any of our %<% branches in 33' cities. ,ot only that# the
account holder can do most of their baning transactions with ease from home or
office without stepping out. +he ban offers a 1urrent Account with all the
benefits that one needs to stay ahead from competition. >921 :an understands
that running a business re*uires time and money and also needs constantly
e)ol)ing. +he :an pro)ides with a choice of 1urrent Account options to
e&clusi)ely suit the ind of business B whate)er the size or scope. +he :an is
offering )arious types of current account under the retail baning segment.
1. +lus Current !((ount:
(n todayCs fastBpaced world# business regularly re*uires to recei)e and send
funds to )arious cities in the country. >921 :an .lus 1urrent Account gi)es
the power of interBcity baning with a single account and access to more than
33' cities. 2rom special che*ues that get treated at par with local ones in any
city where >921 :an has a branchL to free collection of outstation che*ues
4payable at branch locations7L to free interBcity funds transfers of up to 100
lahs# the ban priority ser)ices ha)e become the benchmar for baning
efficiency.
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3. $egular Current !((ount:
A 1urrent account is ideal for carrying out dayBtoBday business transactions.
;ith the >921 :an 0egular 1urrent Account# the account holder can access
their account anytime# anywhere. ;ithdraw and deposit cash# issue and
encash che*ues# mae balanceBin*uiries or as for mini statements# and e)en
re*uest for che*ue boos can be done any time# anywhere. ;ith a )ast
networ of branches in cities all o)er the country# and access to a multitude of
A+6Cs# one can eep trac of all transactions at anytime.
<. Tra&e Current !((ount:
(n todayCs changing business re*uirements# one needs to transfer funds across
cities# and time is of the essence. >921 :an +rade 1urrent Account gi)es
the power of interBcity baning with a single account. 2rom special che*ues
that get treated at par with local ones in any city where >921 :an has a
branchL to free collection of outstation che*ues 4payable at branch locations7L
to free interBcity funds transfers of up to 3% lahs# the ban ser)ices ha)e
become the benchmar for baning efficiency.
4. +remium Current !((ount:
+he business needs a partner who can manage the finance efficiently while
one concentrated on growing his business. +he ban pro)ides with the
benefits of interBcity baning account with .remium 1urrent Account# that
re*uires an a)erage *uarterly balance of only 0s. 3%#000 per *uarter with
.ayableBAtB.ar che*ue boo facility K free interBcity finds transfer across our
networ upto 0s.10 @acs per month.
%. $eimbursement Current !((ount:
A hassleBfree Account that allows the customers to deposit the reimbursements
that recei)es from the company on a monthly basis. +he customer does not
ha)e to maintain a minimum balance with the ban.
". $FC - Domesti( !((ount:
(t is a 0esident 2oreign 1urrency 9omestic Account that manages the
customer’s foreign currency *uite efficiently. +he customer can choose to set
up his own account either in U/ 9ollar# Areat :ritain .ound -uropean -uro.
? SA/ARE F CORPORATE ACCOUNT7
>921 :an offers fi)e inds of salary account to its customer. +hese are as
follows.
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1. Classi( Salary !((ount:
+he 1lassic /alary account is a Hero :alance Account which earns normal
interest on the sa)ings from salary at a competiti)e rate fi&ed by the ban
from time to time. +here is no fee applicable for branch transactions and the
account holder recei)es baning statements once e)ery si& months. +he
account facilitates with free personalized che*ue boos# free A+6 1ard with a
withdrawal limit of up to 0s. 10#000?B per day# free facilities lie ,et :aning#
.hone :aning and 6obile :aning.
3. +ayroll !((ount:
+he >921 :an payroll account offers fle&ibility as well as access to
premium features lie :ill.ay# (nsta Alert at a nominal charge. +he customer
can also access their account anytime by phone or through the (nternet and
pay for their utility bills at a nominal charge.
<. $egular Salary !((ount:
+he 0egular account is a Hero :alance account and comes with a 2ree
(nternational 9ebit 1ard# facilities lie free interBcity?branch baning and /afe
9eposit locers.
4. +remium Salary !((ount:
A powerBpaced account for successful salaried professionals# the .remium
/alary account comes with a free (nternational 9ebit 1ard and addBon 9ebit
card for life# with the option of choosing between a /il)er or Aold credit card
at preferential rates.
%. Defen(e Salary !((ount:
+he account is mainly meant for defence personnel woring with the (ndian
Armed 2orce or (ndian ,a)y. +he account is a zero balance account and
comes with a free (nternational 9ebit 1ard.
? .IGED DEPOSITS7
@ongBterm in)estments form the chun of e)erybodyCs future plans. An alternati)e
way too simply by applying for loans# fi&ed deposits allow to borrow from
customer’s own funds for a limited period# thus fulfilling the needs as well as
eeping the sa)ings secure. +here are three basic types of fi&ed deposits that a
customer can go for it.
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1. $egular Fi.e& Deposit:
In!est %our sa!in#s+ an$ t'en *et t'e) 0or" (or %ou8
(f one belie)es in longBterm in)estments and wish to earn higher interests on
sa)ings# then in)est the money in a 2i&ed 9eposit. :y in)esting in a >921
:an 2i&ed 9eposit# the customer’s money not only stays secure but also
accumulates good interest o)er the period of deposit. .artial withdrawal from
fi&ed deposits before the date of maturity can bail out in times of need.
3. Super Sa'er Fa(ility:
+he customer can enjoy a high rate of interest along with the li*uidity of an
sa)ings account by opting for a /uper /a)er 2acility and a)ail of an o)erdraft
facility of up to $%= of the )alue of fi&ed deposit.
<. Sweep/in Fa(ility:
+he customer can lin the 2i&ed 9eposit with sa)ings or current account and
use it to fall bac on in case of emergencies. A deficit in the sa)ings or current
account is taen care of by using up an e&act )alue from the fi&ed deposit.
/ince deposits are broen down in units of 0e 1?B# the customer will lose
interest only for the actual amount that has been withdrawn.
? DEMAT ACCOUNT7
9ematerialization account is the process by which physical certificates of an
in)estor are con)erted into e*ui)alent number of securities in electronic form and
credited to the in)estor’s account with his 9epository .articipant. +he ban offers
its customer for opening a 9emat Account so that their online trading could be
made easy. +he annual charges for maintaining a 9emat Account with >921
:an is 0s. %00 p.a.
? NRI ACCOUNT7
As an ,0( customer# the ban understands that you ha)e specific baning needs.
+hat is why# the ban offers a )ariety of accounts K deposits specially designed to
suit the customer’s precise need.
1. $upee Sa'ings !((ounts:
• ,0- /a)ings Account
• ,0I /a)ings Account
We understand your world
• /pecial 0( /a)ings Account
3. $upee Current !((ounts:
• ,0- 1urrent Account
• ,0I 1urrent Account
<. $upee Fi.e& Deposits:
• ,0- 2i&ed 9eposits
• ,0I 2i&ed 9eposits
• /uper/a)er Account
• /weepBin Account
4. Foreign Curren(y Deposits:
• 2,10 9eposits
%. !((ounts for $eturning 0n&ians:
• 021 /a)ings Account
• 021 1urrent Account
• 021 2i&ed 9eposits
? /OANS7
>921 :an offer different types of loan to their customer. +hese are as below5
1. .ersonal @oan 11. 1ommercial Fehicle 2inance
3. >ome @oan 13. ;oring 1apital 2inance
<. +wo ;heeler @oan 1<. 1onstruction -*uipment 2inance
4. ,ew 1ar @oan
%. Used 1ar @oan
". I)erdraft Against 1ar
$. -&press @oan
'. @oan Against /ecurities
9. @oan Against .roperty
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10. >ealth 1are 2inance
? CREDIT CARDS7
/il)er 1redit 1ard >ealth .lus 1redit 1ard Falue .lus 1redit 1ard
(dea Aold 1redit 1ard (dea /il)er 1redit 1ard Aold 1redit 1ard
+itanium 1redit 1ard ;oman’s Aold 1redit 1ard 1orporate 1redit 1ard
? DEBIT CARDS7
-asy /hop (nternational Aold -asy /hop (nternational 9ebit -asy /hop ;oman’s
9edit 1ard 1ard Ad)antage 9ebit 1ard
? PREPAID CARDS7
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2ore&.lus 1ard Aift.lus 1ard Gisan 1ard
HDFC BANK – OPERATIONS
+he o)erall performance during the financial year 300%B0" remained healthy with total
net re)enues 4net interest income plus other income7 increasing by %1.1= to 0s. <""9.'
crores from 0s. 3439.< crores in 3004B0%. +he >921 :an has registered a robust
growth in different :alance /heet parameters. +otal deposits of the ban ha)e increased
from 0s. 3#193 crores on <1
st
6arch# 199' to 0s. '#43' crores as on <1
st
6arch 3003 to
0s. 1$#"%4 crores on <1
st
6arch# 300< to 0s. <0#409 crores on <1
st
6arch 3004 to 0s.
<"#<%4 crores as on <1
st
6arch 300% and to 0s. %%#$9$ crores as on <1
st
6arch 300".
+hus# there has been a tendency of the total deposits to nearly double in a span of two
years. +otal deposits of 0s. %%#$9$ crores at the end of 6arch 300" also included around
0s. 3#000 crores of collections held as a baner to )arious initial public offerings. /a)ings
account deposits# which are core to the ban’s strategy for building stable# low cost
sources of funds and reflect the strength of the retail liabilities franchise# increased from
0s. 1#90< crores on <1
st
6arch# 3001 to 0s. 3#9"0 crores on
<1
st
6arch# 3003 to 0s. 4#""< crores on <1
st
6arch 300<
and further to 0s. $#'04 crores on <1
st
6arch 3004 to 0s.
1"#1'" crores on <1
st
6arch# 300" and current account
deposits at 0s. 14#$%3 crores. +hus# sa)ings and current
account deposits both ha)e shown a compound annual
growth rate of %%.4= of the total deposits as on 6arch <1#
300". +he a)erage sa)ings balance per account has also
increased from 0s. 19#<"< in 3004 to 0s. 3"#$<3 in 300".
2urther# the share of sa)ings deposit in the >921 :an is now "$.4= of total deposits.
:ecause of this# the mi& of deposits is sewed in fa)our of low cost deposits. 9uring the
year 300%B0"# the ban’s incremental cost of deposits for the first time stood under 4=.
Along with increase in deposits# loans and ad)ances by the >921 :an ha)e also
increased rapidly with the passage of time. 9uring 300%B0"# gross ad)ances grew by
4'.1= to 0s. <'#41< crores. ,et ad)ances of the ban increased from 0s. '43
crores on <1
st
6arch 199' to 0s. <#4"3 crores on <1
st
6arch 3000# to 0s. "#'14
crores on <1
st
6arch 3003# to 0s. 1$#$4% crores on <1
st
6arch# 3004 and more
rapidly to 0s. <%#0"1 crores on <1
st
6arch 300". +his rapid increase in ad)ances was
primarily dri)en by a growth of 113.9= in retail ad)ances 4including 1ar loans#
personal loans# twoBwheeler loans# commercial )ehicle loans# etc. but e&cluding
in)estment in securitized paper7 and an increase of 3%.$= in wholesale ad)ances.
We understand your world
+he mi& of banCs total ad)ances as on 6arch <1
st
# 300" was "0= wholesale 40s.
31#0<$ crores7 and 40= retail 40s. 14#034 crores7
BUSINESS SEGMENT UPDATE
+he o)erall baning en)ironment remained benign in 300%B0"# other than the drying up
of li*uidity and resultant hardening of interest rates in the last *uarter. +he ban has been
able to achie)e healthy growth across )arious operating and financial parameters. +his
performance reflects the strength and di)ersity of the ban’s three primary business
franchises J $etail Banking" %holesale Banking an& Treasury# as well as a disciplined
approach to ris J reward management.
+he $etail Banking Business continued to be the fastest growing of the :an’s
businesses in 300%B0". +he :an has positioned itself as a oneBstopBshop financial
ser)ices pro)ider# focused primarily on the middle class# mass affluent and high ,etworth
segments. 9uring 300%B0"# the :an launched the RnoBfrills accountS# a basic sa)ings
account offering. +his product would facilitate financial inclusion for customers who
wish to maintain only toen minimum balances in their sa)ings accounts. +he :an’s
range of retail financial products and ser)ices is fairly e&hausti)e including )arious
deposit products# loans# credit cards# debit cards# depository 4custody ser)ices7#
in)estment ad)ice# bill payments and )arious transactional ser)ices. +he ban sells third
party financial products lie mutual funds and insurance to the retail customers. +he
success of the :an’s multi channel strategy is e)idenced in the fact that almost $$= of
customers initiated transactions are ser)iced through the nonBbranch channels. +he
:an’s total customer base increased from "'.1 lacs in 6arch 300% to 9".0 lacs in 6arch
300". +he :an’s focus on semi urban and under baned maret continued# with about
%4% of the :an’s branches now outside the top nine cities. +he :an also e&tends more
than half of its retail loans in nonBmetro marets. +he :an’s success in its third party
distribution business is best e)idenced with income from sales of mutual funds and life
insurance policies contributing o)er 30= of retail fees and commission. In the :an’s
housing loan business# the origination of the >921 home loan product crossed 0s. 3
billion per month in 6arch 300".
(n the %holesale Banking Business# the :an pro)ides its corporate and
institutional clients a wide range of commercial and transactional baning products#
baced by high *uality ser)ice and relationship management. +he :an now has four
business groups catering to )arious /mall and 6edium -nterprise customers e&tending
its ser)ices including cash management ser)ices# foreign e&change products and
electronics baning. +he :an also achie)ed healthy growth in its agriculture and micro
We understand your world
financing. .roducts including the Gisan Aold 1ard# rural supply chain initiati)es and
commodity finance co)ering the entire agriculture financing cycle# the :an’s direct
agriculture lending increased by o)er "0= during the year. +he :an has relationships
with o)er 3% micro finance institutions and has pro)ided financing where the ultimate
beneficiaries e&ceed <00000 households. 9uring financial year 300%B0"# growth in the
wholesale baning business continued to be dri)en by new customer ac*uisition and
higher cross sell with a focus on optimizing yields and increasing product penetration.
+he :an further consolidated its position as a leading player in the cash management
business 4co)ering all outstation collection# disbursement and electronic fund transfer
products across the :an’s )arious customer segment7 with )olumes growing from about
0s. '00000 crores in financial year 3004B0% to o)er 0s. 1000000 crores in financial year
300%B0". +he :an also strengthened its maret leadership in cash settlement ser)ices for
major stoc e&changes and commodity e&changes in the country. +he :an met the
o)erall priority sector lending re*uirement of 40= if net ban credit.
+he :an’s Treasury Banking Business has a presence in the foreign e&change#
deri)ati)es and local currency debt securities and money maret. +he treasury group
manages the :an’s balance sheet and its responsible for compliance wit reser)e
re*uirements and management of maret and li*uidity ris. 9uring 300%B0" re)enues
from foreign e&change and deri)ati)e transactions grew by ".<% to 0s. 11'." crores with
o)er 40= of the re)enue streams emanating from retail and /mall and 6edium enterprise
4/6-7 segments. +he :an has to realize gains in a declining interest rate en)ironment
but e&poses the :an to losses or depreciation in )alue of in)estments when yields rise.
>921 :an remains e&posed to maret ris primarily on the nonB/@0 in)estment
portfolio in the A)ailable for /ale 4A2/7 category. (n 6arch 300"# there was a sharp
increase in short term yields in the debt maret which resulted in mared to maret loss
of 0s. '9.$ crores mainly on the nonB/@0 boo.
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FINANCIAL HIGHLIGHTS
+he
ard of 9irectors of >921 :an @imited appro)ed the annual audited 4(ndianAAA.7 accounts for the year ended 6arch <1# 300" at their meeting held in 6umbai on
6onday# April 1$# 300". +he comparati)e financial statement for the last si& years is as
follows5
40s. @acs7
5AAA3A6 5AA63A5 5AA53A< 5AA<3A> 5AA>3A? 300%B0"
(nterest (ncome 1#3%9#4" 1#$03#99 3#01<#"1 3#%4'#9< <#09<#49 4#4$%#<4
(nterest -&pense $%<#$% 1#0$<#$4 1#191#9" 1#311#0% 1#<1%#%" 1#939#%0
Net Interest In&o)e ?A?+@6 C59+5? =56+C? 6+<<@+== 6+@@@+9< 5+?>?+=>
Ither (ncome 1$"#%$ <<%#90 4"%#%% 4'0#0< "%1#<4 1#13<#9'
Net Re!enues C=5+5= 9C?+6? 6+5=@+5A 6+=6@+96 5+>59+5@ <+CC9+=5
Iperating costs <09#%9 41$#9% %$$#0% '10#00 1#0'%#40 1#"91#09
Operatin# Resu*t <@5+C9 ?>@+5A @6A+6? 6+AA@+96 6+<><+=@ 6+9@=+@<
.ro)isions and 1ontingencies %$#"< 131#'3 1<9#<0 3''#9% <"4#9< $3%#33
Pro(it 2e(ore ta1 <6?+AC >5?+<= ?@A+=? @6=+9C 9@=+9> 6+5?<+?6
.ro)ision for ta&ation 104#94 13'#<4 1'<#3% 309#4" <1<#<' <'3#$<
Pro(it a(ter ta1 56A+65 59@+A> <=@+CA ?A9+?A CC?+?C =@A+@=
.un$s7
9eposits 11#"%'#11 1$#"%<#'1 33#<$"#0$ <0#40'#'" <"#<%4#3% %%#$9"#'3
/ubordinated debt 300#00 300#00 300#00 "00#00 %00#00 1#$03#00
/tocholders’ -*uity 91<#09 1#943#3' 3#344#'< 3#"91#'' 4#%19#'% %#399#%<
;oring 2unds 1%#"1$#<< 3<#$'$#<' <0#434#0' 43#<0"#99 %1#439#00 $<#%0"#<9
@oans 4#"<"#"" "#'1<#$3 11#$%4#'" 1$#$44#%1 3%#%""#<0 <%#0"1#3"
estments $#14%#14 13#004#03 1<#<''#0' 19#3%"#$9 19#<49#'1 3'#<9<#9"He% Ratios7
-arnings per share 40s.7 '."4 11.01 1<.$% 1$.9% 33.93 3$.93
0eturn on A)erage ,etworth 34.%<= 1'.<0= 1'.10= 30.14= 30.44= 1$.4$=
+ier 1 1apital 0atio '."9= 10.'1= 9.49= '.0<= 9."0= '.%%=
+otal 1apital 0atio 11.09= 1<.9<= 11.13= 11.""= 13.1"= 11.41=
9i)idend per share 40s.7 3.00 3.%0 <.00 <.%0 4.%0 %.%088
9i)idend payout ratio 3%.%%= 3<."'= 34.$3= 33.1%= 34.00= 33.%%=
o )alue per share as at 6arch <1#300" 40s.7
<$.%0
"9.00 $9."0 94.%3
14%.'" 1"9.34
We understand your world
6aret price per share as at 6arch
<1# 300" 40s.78
33'.<% 3<"."0
3<4.%%
<$'.$% %$<."4 $$4.3%
.rice to -arnings 0atio 3".4< 31.%0 1$.0" 31.10 3%.0< 3$.$4
0s. 10@acs T 0s. 1 6illion 0s. 1 1rore T 0s. 10 6illion 88 .roposed 8 /ource5 ,/-
HD.C BANH /IMITED BA/ANCE SHEET
AS AT <6
ST
MARCH+ 5AAC
In terms of our report of even date attached. 2or and on behalf of the
ard He"i M8 Mistr%2or P8C8 Hansotia Co8 9a#$is' Capoor Dineet 9ain
Chartered Accountants Chairman As'i) Sa)anta
H'urs'e$ N8 Pasta"ia A$it%a Puri Dr8 Den"at Rao Ga$0a*
Partner Managing Director Renu Harna$
CAPITA/ AND /IABI/ITIES
1apital
0eser)es and /urplus
-mployees’ stoc options 4grants7
outstanding
9eposits
rrowings /ubordinated debt
Ither liabilities and pro)isions
Tota*
ASSETS
1ash and balances with 0eser)es :an of
(ndia
:alances with bans and money at call and
short notice
estments Ad)ances
2i&ed assets
Ither assets
Tota*
1ontingent liabilities
:ills for collection
+he attached notes form part of the financial
statements.
/chedule
1
3
<
4
%
"
$
'
9
10
11
13
As at
<68A<85AAC
<1<#14
4#9'"#<9
$
%%#$9"#'3
3#'%'#4'
1#$03#00
$#'49#49
@<+?AC+<9
<#<0"#"1
<#"13#<9
3'#<9<#9"
<%#0"1#3"
'%%#0'
3#3$$#09
@<+?AC+<9
314#$'3#<4
3#'3'#'9
40s. @acs7
As at
<1.0<.300%
<A9+==
>+5A9+9@
><
<C+<?>+5?
>+@9A+A6
?AA+AA
?+5C>+>C
%1#439#00
5+C?A+6<
6+=5<+=@
69+<>9+=6
5?+?CC+<A
@A=+<5
6+<<A+?@
%1#439#00
6>A+@@@+6?
5+?>9+C=
We understand your world
SanIa% Don#re Ar!in$ Pan$e
Vice President (Legal Bo22% Pari"'
6umbai# 1$ April# 300" ! Compan" #ecretar"
Director
NNNNNNNNNNNNNNNNNNNNNNN
0s. 10 lacs T 0s. 1 million
.inan&ia* Ana*%sis7
? +rofit 1 2oss !((ount: 3uarter en&e& Mar(h 45" 6778
2or the *uarter ended 6arch <1# 300"# the :an earned total income of 0s.
1#"'3.$ crores as against 0s. 1#0'$.< crores in the corresponding *uarter ended
6arch <1# 300%. ,et re)enues 4net interest income plus other income7 were Rs8
6+A><8C &rores for the *uarter ended 6arch <1# 300"# an increase of >585B o)er
Rs8 @<<8C &rores for the corresponding *uarter of the pre)ious year. (nterest
earned 4net of loan origination costs7 increased from Rs =C@85 &rores in the
*uarter ended 6arch <1# 300% to Rs8 6+<@=8? &rores in the *uarter ended 6arch
<1# 300". ,et interest income 4interest earned less interest e&pended7 for the
*uarter ended 6arch <1# 300" increased by >>8AB to 0s. $<9.4 crores# dri)en by
a)erage asset growth of >@8CB and a net interest margin of just o)er 4=.
Ither income for the *uarter ended 6arch <1# 300" was up by <=85B to
Rs8 <A>85 &rores# consisting primarily of fees K commissions of 0s. <<".$ &rores#
foreign e&change K deri)ati)es re)enues of 0s. 4".< crores# and profit ? loss on
sale K re)aluation of in)estments of 0s. 4'".'7 crores as against 0s. 1$".' crores#
0s 3%.% crores and 0s. 30.% crores respecti)ely for the *uarter ended 6arch <1#
300%. @osses on sale K re)aluation of in)estments during the *uarter were
primarily on nonB/@0 in)estments# due to the sharp increase in short term yields
in the debt maret in 6arch 300". Iperating e&penses for the *uarter at 0s. 4'3.<
crores were >C85B of net re)enues. .ro)isions and contingencies for the *uarter
were 0s. 1'1." crores 4against 0s. 10$.1 crores for the corresponding *uarter
ended 6arch <1# 300%7# and primarily comprised general K specific loan loss
pro)isions of 0s. 110.< crores and amortization for in)estments 4in the >eld to
6aturity category7 of 0s. $1.$ crores as against 0s. %%.1 crores and 0s. %9."
crores respecti)ely for the corresponding *uarter ended 6arch <1# 300%. After
pro)iding 0s. 11".4 crores for ta&ation# the :an earned a ,et .rofit of 0s. 3"<.3
crores# a <A86B increase o)er the *uarter ended 6arch <1# 300%.
? +rofit 1 2oss !((ount: 9ear en&e& Mar(h 45" 6778
2or the year ended 6arch <1# 300"# the :an earned total income of Rs8 ?+?998<
&rores as against 0s. <+@>>8= &rores in the corresponding period of the pre)ious
year. ,et re)enues 4net interest income plus other income7 for the year ended
6arch <1# 300" were 0s. <#""9.' crores# up ?686B o)er 0s. 3#439.< crores for the
We understand your world
year ended 6arch <1# 300%. ,et .rofit for year ended 6arch <1# 300" was 0s.
'$0.' crores# up <A8=B+ o)er the corresponding year ended 6arch <1# 300%.
? Balan(e Sheet: !u&ite& as on Mar(h 45
st
" 6778
9uring 300%B0"# the :an’s total balance sheet size increased by >589B to 0s.
$<#%0".4 crores. +otal 9eposits increased by %<.%= from 0s. <"#<%4.< crores 4as
of 6arch <1# 300%7 to 0s. %%#$9".' crores 4as of 6arch <1# 300"7. /a)ings
account deposits at 0s. 1"#1'%.' crores and current account deposits at 0s.
14#$%3.% crores# together accounted for appro&imately %%.4= of total deposits as
of 6arch <1# 300". 9uring 300%B0"# gross ad)ances grew by 4'.1= to 0s.
<'#413." crores. +his was dri)en by a growth of $9.$= in retail ad)ances to 0s.
31#3<1.1 crores# and an increase of 568@B in wholesale ad)ances to 0s. 1$#1'1.%
crores. Ine of the reasons for the high growth rate in retail loans was that the
*uantum of retail loans securitized 4sold7 during the year was less than half of the
0s.4#'00 crores sold during the pre)ious year. +he ban’s core customer assets
4ad)ances plus credit substitutes lie commercial paper# corporate bonds etc87
increased by >>89B to 0s. <'#993.4 crores in 6arch 300". (n addition# the ban
held 0s. 4#4%$.1 crores of in)estments in mortgage baced and asset baced
securities where the underlying assets were primarily home loan and commercial
)ehicle?car loans recei)ables. +otal customer assets 4including securitization
in)estments7 were therefore 0s. 4<#449.% crores as of 6arch <1# 300".
? Di'i&en& +ayout:
+he
ard of 9irectors recommended an enhanced di)idend of ??B for the yearended 6arch <1# 300"# as against 4%= for the pre)ious year 4which included a
special oneBtime di)idend of %= on the occasion of the :an completing 10 years
of operations7. +his would be subject to appro)al by the shareholders at the ne&t
annual general meeting.
? Capital !&e:ua(y $atio:
+he :an’s total 1apital Ade*uacy 0atio 41A07 as at 6arch <1# 300" stood at
668>B as against the regulatory minimum of
9.0=. +ierB( 1A0 was '."=. 9uring 300%B0"#
<3.$ lac shares were allotted to the employees of
the :an pursuant to the e&ercise of options
under the -mployee /toc Iption /cheme of
the :an. +he :an raised 0s 1#303 crores
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subordinated debt at an annualized coupon ranging between $.%= to '."= and
ha)ing a maturity from 9 to 10 years. +he debt is subordinated to present and
future senior indebtness of the :an and *ualifies as +ierB(( capital under 0
’sguidelines for assessing capital ade*uacy for the year 300%B0".
ACHIEVEMENTS
>921 :an began operations in 199% with a simple mission5 to be :a -or*$3&*ass
In$ian Ban"J. +he :an realized that only a singleBminded focus on product *uality and
ser)ice e&cellence would help to get there. +oday# the :an is proud to say that it is well
on the way towards that goal.
(t is e&tremely gratifying that :an’s efforts towards pro)iding customer
con)enience ha)e been appreciated both nationally and internationally.
• AWARDS FOR THE YEAR 2005-06
? :Best Ban" in In$ia; J 300% :usiness +oday J G.6A /ur)ey
? :Best Do)esti& Co))er&ia* Ban"; :Best Cas' Mana#e)ent
Ban"; J (ndia J Asiamoney Awards for 1orporate -&cellence 3004B0%
? RBest Ban"; J In$ia J 2inance Asia
? :Co)pan% o( t'e Eear; J +he -conomic +imes Awards for 1orporate
-&cellence 3004B0%
? :Best Do)esti& Ban" In In$ia; J +he Asset +riple A 1ountry Awards
300%
? :Most Custo)er Responsi!e Co)pan% 4 Ban"in# an$ .inan&ia*
Ser!i&es; J +he -conomic +imes J A)aya Alobal 1onnect 1ustomer
0esponsi)eness Awards 300%
• AWARDS FOR THE YEAR 2004-05
? JBest Ban" in In$iaJ 4 3004 :usiness +oday J G.6A /ur)ey
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? JBest O!era** /o&a* F Do)esti& Ban" 4 In$ia 3 >ong GongBbased
2inance Asia magazine
? JOne o( In$iaKs Most Respe&te$ Co)panies J as part o( T'e Business
-or*$ Most Respe&te$ Co)pan% A0ar$s 5AA> 3 :usiness ;orld
? :Best Un$er a Bi**ion 6AA Best S)a**er SiLe Enterprises in Asia F
Pa&i(i& an$ Europe; 3 2orbes Alobal
? :Operationa* E1&e**en&e in Retai* .inan&ia* Ser!i&es; 4 In$ia 3 Asian
:aner -&cellence in 0etail 2inancial /er)ices .rogram
• AWARDS FOR THE YEAR 200-04
? :Best /o&a* Ban"; 4 In$ia 3 >ong GongBbased 2inance Asia magazine
? JBest Ban" in In$iaJ 4 300< :usiness +oday J G.6A /ur)ey
? :Best Do)esti& Ban"; 3 +he Asset +riple A 1ountry Awards
? :Best Un$er a Bi**ion+ 5AA Best S)a** Co)panies (or 5AA<; 3 2orbes
Alobal
? :Best Ne0 Pri!ate Se&tor Ban" 3 5AA< in t'e .E3Ernst Eoun# 3 +he
2inancial -&press
? :Best Ban" in t'e Pri!ate Se&tor; 3 Iutloo 6oney magazine
? :Best IT User in Ban"in#; 3 ,A//1I6 and economictimes.com J 300<
• AWARDS FOR THE YEAR 2002-0
? :Best /o&a* Ban"; 4 In$ia 3 >ong GongBbased 2inance Asia magazine
? JBest Ban" in In$ia; 3 -uromoney magazine
? :Co))er&ia* Ban" in In$ia 5AA5; 3 Asiamoney magazine
• AWARDS FOR THE YEAR 200!-02
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? :Best Do)esti& Co))er&ia* Ban" 4 In$ia; 3 >ong GongBbased 2inance
Asia magazine
? :Best Ban" in In$ia; 3 -uromoney magazine
? :<AA Best S)a** Co)panies one o( t'e M5A (or 5AA6N 2est .E3EE Best
Ban"s s)a** &o)panies 3 2orbes Alobal
? :A0ar$s (or Corporate E1&e**en&e as t'e E)er#in# Co)pan% o( t'e
Eear; 3 +he -conomic +imes
• AWARDS FOR THE YEAR 2000-0!
? :In$ia Ks Best Ban"; 3 :usiness (ndia
? :Best Do)esti& Co))er&ia* Ban" 4 In$ia; 3 >ong GongBbased 2inance
Asia magazine
? :Best Pri!ate Se&tor Ban"; 3 :usiness +oday
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HDFC BANK – SWOT
ANALYSIS
STRENGTHS:
? >921 :an has strong brand e*uity.
? >921 :an has the second largest number of lined branches in the country and
also has the most ad)anced data warehouse. +he total numbers of branches of the
:an were %<% at the end of 6arch 300" as against only <13 at the end of 6arch
3004. +his pro)ides a competiti)e edge o)er the competitors.
? +he *uality of >921 :an product portfolio is e&cellent.
? +he company has a strong and rich infrastructure to support its woring which
include a strong technological base.
? (t has a highly silled worforce# which gi)es a competiti)e ad)antage o)er
others.
? >921 :an is strongly positioned as a collecting ban in the (.I maret.
? +he :an has registered a strong deposit growth. 9uring 300%B0"# total deposits
increased by %%.4 supported by an increase of "$.4= in sa)ings deposits.
WEAKNESSES:
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? A wea networ of A+6s in comparison to its main competitors# especially (1(1(
:an# U+( :an and /tate :an of (ndia.
? :eing not a ,ationalized :an general customers are found reluctant in :aning
with this ban# as also in other pri)ate sector bans.
? :usiness per employee in the >921 :an at 0s. $$' lacs# although higher than
(9
:an and (1(1( :an# was lower than U+( :an 40s. '9" lacs7 and(ndus(nd :an 40s. 1#%'' lacs7.
? Iperating -&penses as percentage of total assets ha)e been higher for the >921
:an as compared to some of its competitors.
OPPORTUNITIES:
? ;ith emphasis on core )alues such as customers focus# operating e&cellence#
product leadership and the people# along with open and transparent wor culture#
the >921 :an has a bright future.
? /ince >921 :an has in)ested in technology right from its inception. (ts
technology platform has been acnowledged as one of the best in terms of
robustness# fle&ibility and cost efficiency. +his would help the ban to further
build cost and ser)ice ad)antage and compete not only with other pri)ate sector
bans but also with foreign bans those who are opening more and more branches
in (ndia.
? +he :an has infused the philosophy of 1orporate Ao)ernance in all its acti)ities.
+he philosophy would help the ban to mo)e further towards shareholder
protection and ma&imization of their longBterm )alues.
? :eing customer becoming more ser)ice oriented could open up new a)enues of
growth for the :an.
? (n case of future ad)ancement >921 is well placed to capitalize on any such
opportunities.
THREATS:
? +he company is facing tough competition from players lie /
# (1(1( :an andU+( :an itself. +his might reduce the margins in the future.
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? +he company is foraying into fields where they don’t ha)e e&perience of
operations and might end up deteriorating the *uality of the assets. +his remains a
ey threat in the fast changing global scenario.
? (n a mad race for e&panding retail lending# especially in housing and auto loans#
bans are laying less emphasis on collaterals. +his is liely to increase the ris of
defaults for bans including >921 :an.
OVERVIEW OF BANKING
SECTOR
Ban"in# Stan$s .or
:aning refers to the business of accepting deposits and lending money. +he deposits are
repayable on demand and withdrawal by che*ue or draft.
Meanin# o( Ban"in# Co)pan%
According to /ection % of :aning 0egulation Act# 1949# RA :aning 1ompany means
any company which transacts the business of baning. :aning means the accepting for
the purpose of lending or in)estment# or deposits of money from the public# payable on
demand or otherwise and withdrawal by che*ue# draft or otherwiseS.
.opularly# baning company is called a ban or baner.
,ow a day# in addition to acceptance of deposits# the ban pro)ides )arious other ser)ices
lie safe custody of )aluables# remittance of funds etc. +hus# a ban may define as
institution# which is engaged in accepting deposits# pro)iding loans and other ser)ices to
its customers and the general public.
BANHING IN INDIA7 3 A Histori&a* Perspe&ti!e
(ndian bans ha)e a che*uered history. +he :ritish legacy left behind a host of large and
small pri)ate bans that were not *uite professional in their approach. (ndia at
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(ndependence was underBbaned. :an of >industan# set up in 1'$0# was the earliest
(ndian :an. :aning in (ndia on modern lines started with the establishment of three
presidency bans under .residency :an’s Act 1'$" i.e. :an of 1alcutta# :an of
mbay and :an of 6adras. (n 1931# all presidency bans were amalgamated to formthe (mperial :an of (ndia. (mperial :an carried out limited central baning functions
also prior to establishment of 0
. (t engaged in all types of commercial baningbusiness e&cept dealing in foreign e&change.
0eser)e :an of (ndia Act was passed in 19<4 and 0eser)e :an of (ndia 40
7was constituted as an ape& ban without major go)ernment ownership. :aning
0egulations Act was passed in 1949. +his regulation brought 0eser)e :an of (ndia
under go)ernment control. Under the act# 0
got wide ranging powers for super)ision and control of bans. +he Act also )ested licensing powers and the authority to conduct
inspections in 0
.(n 19%%# 0
ac*uired control of the (mperial :an of (ndia# which was renamedas /tate :an of (ndia 4/
7. (n 19%9# / too o)er control of eight pri)ate bansfloated in the erstwhile princely states# maing them as its 100= subsidiaries.
0
was empowered in 19"0# to force compulsory merger of wea bans with thestrong ones. +he total number of bans was thus reduced from %"" in 19%1 to '% in 19"9.
(n !uly 19"9# go)ernment nationalized 14 bans ha)ing deposits of 0s. %0 crores and
abo)e. (n 19'0# go)ernment ac*uired " more bans with deposits of more than 0s. 300
crores. ,ationalization of bans was to mae them play the role of catalytic agents for
economic growth. +he ,arsimham 1ommittee report suggested wide ranging reforms for
the baning sector in 1993 to introduce internationally accepted baning practices. +he
amendment of :aning 0egulation Act in 199< saw the entry of new pri)ate sector
bans.
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PREFACE
>91 :an has been promoted by >ousing 9e)elopment 2inance 1orporation 4>9217#
(ndia’s premier housing finance company. +he >ousing 9e)elopment 2inance
1orporation @imited 4>9217 was amongst the first to recei)e an Uin principle’ appro)al
from the 0eser)e :an of (ndia 40
7 to set up a ban in the pri)ate sector# as part of the0
’s liberalization of the (ndian :aning (ndustry. (n August1994# the ban wasincorporated in the name of U>921 :an @imited’ with its registered office in 6umbai.
+he ban commenced its operation as a /cheduled 1ommercial :an in !anuary 199%.
(n financial year 3003# the ban issued A90s amounting to U/ V 1$3.% mn at the
issue price of U/ V 1<.'< per share 41A90 T < e*uity shares7 at the ,ew Dor /toc
-&change.
@iberalization and reforms ha)e thrown up a few challenges as well as created
opportunities for bans to increase re)enues by di)ersifying into in)estment baning#
insurance# credit cards# mortgage financing# retail financing# depository ser)ices and
more. ;ith the emergence of eBcommerce# the way in which baning business is
presently conducted would undergo a radical change. 2uture competition among bans
will be essentially based on the twin platforms of technology sa))iness and ability to
attract talent. +elephone and internet baning will gain importance and the future will see
the emergence of internet dri)en operations without a broadBbased branch networ.
(ncreasing competition will e&ert pressure on bottom line# forcing bans to cope with
thinning margins. (t is looing for both organic and inorganic growth.
+he year 300" has witnessed rapid changes in the baning sector with a rather
strong and aggressi)e presence of pri)ate sector (ndian bans. +hese new bans ha)e
taen a sizable amount of business away from the public sector as well as the foreign
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bans. +his new crop of bans has been le)eraging technology to its ad)antage to rope in
new business and create a sizable presence in this sector. +he gradual deregulation of the
sector has been increased presence of such bans in almost all sectors that warrant their
ser)ices. +he decrease in the small sa)ings interest rates by the Ao)ernment has been the
strongest incenti)e for this sector to attract new client. :ut on the other hand# the lower
growth in the economy of around $.3= 4initial target was '=7 has also affected the
baning sector.
2uture /cenario5 ;ith most of the bans# including the pri)ate sector ones fast adopting
the latest technologies in baning# the early bird ad)antage of technological superiority
will soon fade away. ;ith most bans pro)iding almost all ser)ices under the sun and the
real potential of the retail maret now unfolding# most bans operating on similar lines
are e&pected to e&hibit more than normal rates of growth in the short term. (n the long
term# the differentiating factor will be the ability of these bans to retain their customer
base at affordable margins both to itself as well as its client.
>921 :an emphasizes a lot on *uality control. (t has become the first ban in
(ndia to get (/I 900153000 certification for depository ser)ices at the 1entral .rocessing
Unit and bacend processing of retail liabilities and direct baning operations. +he ban
also has (/I 900153000 certification for 1ustodial ser)ices.
6y tas during the summer training was concerned with taing feedbac
regarding customer awareness of the 1lassic .ortfolio .rogramme. ( had study the maret
and analyze the prospecti)e customers who might not still aware of the classic
programme.
( tried to now the preferences of the customer and did analyze the same with
other pri)ate bans. ( thoroughly e&plored the maret and ha)e e&amined the factors
influencing the present and future prospects of >921 :an.
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GROUP MEMBERS
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CREDIT RATING
>921 :an has its deposit programs rated by two rating agencies B Cre$it Ana*%sis
Resear&' /i)ite$ (CARE) an$ .it&' Ratin#s In$ia Pri!ate /i)ite$. +he :anCs
2i&ed 9eposit programme has been rated KCARE AAA (.D)K OTrip*e AP by 1A0-#
which represents instruments considered to be Eof the best *uality# carrying negligible
in)estment risE. 1A0- has also rated the :anCs 1ertificate of 9eposit 4197 programme
JPR 6QJ which represents Esuperior capacity for repayment of short term promissory
obligationsE. 2itch 0atings (ndia .)t. @td. 4100= subsidiary of 2itch (nc.7 has assigned
the JtAAA (in$ r)J rating to the :anCs deposit programme# with the outloo on the
rating as EstableE. +his rating indicates $highest credit %ualit"$ where $protection factors
are ver" high$.
>921 :an also has its long term unsecured# subordinated 4+ier ((7
nds of0s.4 billion rated by 1A0- and 2itch 0atings (ndia .ri)ate @imited. 1A0- has assigned
the rating of JCARE AAAJ for the +ier ((
nds while 2itch 0atings (ndia .)t. @td. hasassigned the rating JAAA (in$)J with the outloo on the rating as EstableE. (n each of the
cases referred to abo)e# the ratings awarded were the highest assigned by the rating
agency for those instruments.
Corporate Go!ernan&e Ratin#
+he ban was one of the first four companies# which subjected itself to a 1orporate
Ao)ernance and Falue 1reation 4AF17 rating by the rating agency# +he 1redit 0ating
(nformation /er)ices of (ndia @imited 410(/(@7. +he rating pro)ides an independent
assessment of an entityCs current performance and an e&pectation on its Ebalanced )alue
creation and corporate go)ernance practicesE in future. +he ban has been assigned a
KCRISI/ GDC /e!e* 6K rating which indicates that the banCs capability with respect to
wealth creation for all its staeholders while adopting sound corporate go)ernance
practices is the highest.
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MAIN COMPETITORS
>921 :an is one of the largest pri)ate ban in (ndia# it has many competitors in the
maret on the way of its de)elopment. /till the ban has *uite efficiently managed its
competitors and pa)es the path of success in the following 10 years since its inception.
+he competitors are in the form of two categories lie Private &an's of India and
(oreign &an's of India
+ri'ate Banks of 0n&ia:
? (1(1( :A,G
? U+( :A,G
? (9
:A,G? (,9U/(,9 :A,G
? GI+AG 6A>(,90A :A,G
? (,A FD/DA :A,G
Foreign Banks of 0n&ia:
? >/:1 :A,G
? /+A,9A09 1>A0+-0-9 :A,G
? 1(+( :A,G
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COMPOSITION OF HDFC BANK, GOLPARK
BRANCH (KOLKATA)
.
Bran&' o((i&e7 >921 :an @td. Re#istere$ o((i&e7 >921 :an >ouse
1<3A# 9r. 6eghnad /aha /arani# /enepati :apat 6arg
4@ocation5 Aolpar7 @ower .arel#
Golata J $00 039 6umbai J 400 01<
.h5 0<< 34"< 1<'%? 34"< 3041 .h5 033 ""%3 1000
Bran&' Mana#er
Assistant Mana#er Re*ations'ip Mana#er Deput% Bran&'
Mana#er
Aut'oriLe$ Persona*
Ban"er
Aut'oriLe$ Te**er
Te**er 6 Te**er 5
In!est)ent
Re*ations'ip Mana#er
PB 6 PB > PB 5 PB <
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0n'estors are the ba(kbone"
Customers the heart an&
;mployees the soul of our Bank#
R "#ilo$o%#& of HDF' (an)
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DECLARATION
I hereby declare that the information presented in this
Project Report is correct to the best of my knowledge.
This project has not been published anywhere else.
SAEAN GANGU/E
PGDBM 4 III SEMESTER
MF66F96 O.INANCEP
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ACKNOWLEDGEMENT
No gain without pains is a common saying. Gratitude is the hardest of emotion to
express and often does not find adeuate words to con!ey. Therefore" a Project
Report is not an effort of a single person but it is a contributory effort of many
hands and brains.
I am heartily grateful to the #lmighty" whose blesses and grace helped me in
competing the project" for they did not disposed what I proposed.
In this regard I would like to thank to Prof. $ukund %al &'irector General of
($() and $r. Neeraj (ri!asta! &'G$ * +orporate Relations) for pro!iding me an
opportunity to do my summer training project in ,'-+ .ank.
(econdly" I would like to thank ,'-+ .ank for pro!iding me information
which is helped in making my project.
I am !ery thankful to $r. #nindya (undar .asu &R($*,R*/ast) for pro!iding
me an opportunity to do my summer training project in ,'-+ .ank.
I would like to express my deep gratitude towards $r. ,arsha 'utta &.ranch
$anager) of ,'-+ .ank Golpark .ranch" 0olkata" for his !aluable guidance and co1
operation.
I deeply acknowledge the interest and enthusiasm shown by all the +lassic
Portfolio +ustomers and other banks of 0olkata while filling up the uestionnaire.
I would like to thank all other members of the branch for their efforts and
also their co1operation in successful completion of my training.
I am indebted to 'r. '. (. $ishra &(enior Professor) ($( 2aranasi" who
helped me in completing my project work.
%astly" I express my sincere gratitude towards my lo!ing and caring parents
who supported and guided me throughout my training period and helped me in
successful completion of the project.
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PART - I
CROSS SE//ING TO C/ASSIC
PORT.O/IO CUSTOMERS
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INTRODUCTION
+he C*assi& Port(o*io was introduced in 300< with a )iew to identifying customers with
large 1A/A 41urrent Account and /a)ings Account7 balances# who also had potential to
grow.
+he 1lassic .ortfolio was relaunched as at 1
st
April 300% to achie)e the following
four objecti)es5
• +o include a much larger base of customers and capture share of wallet.
• +o consciously impro)e customers retention from these customers through cross
sales and enhanced liability balances.
• +o pro)ide a bundled offering in recognition of their e&isting relationship and to
further enhance it.
• +o gi)e .:s 4.ersonal baner7 greater ownership of these customers for whom
they are responsible.
C*assi& Ban"in# Pro#ra))e7
+he 1lassic baning has been centrally identified and raced to .:s since 300<. +he logic
behind creating this portfolio lay in identifying customers with large balances. (t was felt
that these customers offered high potential to enhance balances if they were proacti)ely
focused on by branches. I)er the last couple of years# it has been obser)ed that full
justice has been done to the inherent potential of this portfolio offered since it was )iewed
as a Rglorified databaseS. +o correct this# it was R/tructuredS .rogramme needed to be
e)ol)ed.
;hile not enlisting as a Pre(erre$ Custo)er# it is widely belie)ed that we need
to include customers on the 1lassic .ortfolio in a more structured relationship
programme# managed by .:s.
O2Ie&ti!e o( C*assi& Port(o*io Pro#ra))e7
? 0etaining e&isting base of relationships
? :e primary baner to these relationships
? 1ross sell products and ser)ices
? 1apture share of wallet )ia 2amily relationship
? 6ature the relationships to upgrade to .referred .rogramme
? -nhance customer profitability
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E*i#i2i*it% (or entr% into t'e C*assi& Ban"in# Pro#ra))e7
+o be eligible for the 1lassic :aning .rogramme the following criteria has to be met
? 0etail 0esident (ndi)idual.
? 1 /A account under customer (9 is mandatory.
? 1A/A AQ: TW 0s. % lacs at a customer (9?group le)el# with at least 1 sa)ings
account 4+enor of 29 is recommended to be at least " months7.
? (n addition to the abo)e# group profitability to be :ands 4 or %.
E1&*usi!e Bene(its a!ai*a2*e to C*assi& Custo)ers7
+he following benefits will be a)ailable to all 1lassic :aning .rogramme customers
? All 1lassic :aning .rogramme customers will ha)e a dedicated .ersonal :aner
4.:7 to loo after the relationship.
? +he .: will be a)ailable for ser)icing if the customer comes to the branch.
? +he .: will call and eep in touch with the customer to fulfill all ser)icing needs
and to cross sell and deepen the relationship.
? /pecial price offs or discounts on products and ser)ices will be a)ailable to the
1lassic :aning .rogramme customers as listed below.
Sr< )o< +ro&u(ts Benefits
1 9emat A?c All 1lassic customers can open multiple 9emat
A?cs with first year annual folio maintenance
charges wai)ed.
+his wai)ed is a)ailable e)en if all the 9emat
A?cs are lined ( to a single /A A?c.
+his pricing is a)ailable subject to assets being
deposited within the first month of opening the
9emat A?c
+he offer is applicable on all 9emat A?cs opened
after the customer is part of the .: programme.
+he 261 charges from second year onwards will
reduce to 0s. 3%0 pro)ided the customers
transfers shares into the A?c within the 1
st
year.
3 >/@ A?c .riced at 0s. "49 for registration
(f )olume transacted is 30% lacs within < months
of A?c opening# the AI1 will be credited in
broing A?c
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< 1redit 1ards All 1lassic .ortfolio customers can a)ail of a
+itanium 1redit 1ard by paying a one time fee of
0s. $%0 or All 1lassic .ortfolio customers can
a)ail of a Aold 1redit 1ard free for life
4 2ore& 1on)ersion rates on 2O transactions can be
impro)ed up to % paise on card rates for both buy
and sell
% 9ebit 1ards ,ormal 9ebit card annual fee of 0s. 100 will be
wai)ed for life 4where life T the duration the
customer is part of the 1lassic .ortfolio7
" @ocers Annual @ocer rental rates will be reduced by
3%= for these customers
$ 1ombined
6onthly
/tatement
All customers will recei)e a combined statement
at a monthly fre*uency. +he statement will
pro)ide details of all 1A/A and 29 A?cs where
the customers is the 1
st
holder
' :ill .ay :ill .ay charges of 0s. 3% per annum will be
wai)ed for these customers as long as they are
part of the 1lassic portfolio
9 (nsta Alert (nsta Alert charges will be wai)ed for these
customers as long as they are part of the 1lassic
portfolio
10 Assets 1lassic portfolio customers will get reduced
pricing on Asset product
11 /er)ice charges
4,on
6aintenance of
AQ: charges7
1harges on non maintenance of AQ: will be
wai)ed for all A?c of the 1lassic portfolio
customers
PB Port(o*io Pro#ra))e Entr% .or)7
>921 :an uses a particular form to enlist the e&isting customer’s name into the
.ortfolio .rogramme. +he e&act form is shown below which the ban uses for raising its
customer’s name.
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PB Port(o*io Pro#ra))e Entr% .or)
.: 1ode5 :r 1ode5 :0 ,ame5
8 Aroup (95 ,ame of .rimary (9 in 0elationship5
() *ote+ ,roup ID should &e the cust of the Primar" ID
Sr8 No8 Cust ID Na)e o( Custo)er Re*ations'ip to Group ID
1
3
<
4
%
"
$
'
9
10
11
13
1<
14
1<
B (s this a new groupX Des ,o
B (s this an addition to an e&isting groupX Des ,o
B (s this regrouping of an e&isting groupX Des ,o
B (s this a change in .: codesX Des ,o
B (f yes# is current .: appro)al attachedX Des ,o
B (s this an upgrade from 2amily a?c to .: .ortfolioX Des ,o
B (f yes# is 2amily a?c -&it 2orm attachedX Des ,o
B 9oes this group meet eligibility criteriaX Des ,o
B (f no# is 0:6 appro)al attachedX Des ,o
B (s there W 10 (9s being groupedX Des ,o
B (f yes# is 0:6 appro)al attachedX Des ,o
/ignature of .:5NNNNNNNNNNNNNNNNNNNNNNNNNNNNNNN
/ignature of :65NNNNNNNNNNNNNNNNNNNNNNNNNNNNNNN
9ate5NNNNNNNNNNNNNNNNNNNNNNNNNNNNN
.: ,ame5NNNNNNNNNNNNNNNNNNNNNNNN
:6 ,ame5NNNNNNNNNNNNNNNNNNNNNNN
.or o((i&e Use on*% 4 CPU A&ti!it%
.: 1ode update Des
Aroup (9 6aintained Des
-thnic code maintained Des
1ombined statement flag maintained Des
.: .ortfolio 6emo maintained Des
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RESEARCH OBECTIVES
+he objecti)es of the project are enumerated as below5
? To (in$ out t'e A0areness o( C*assi& Port(o*io Pro#ra))e a)on#
t'e &usto)ers re#ar$in# (a&i*ities pro!i$e$ 2% t'e 2an"
? To #au#e t'e *e!e* o( ser!i&e o((ere$ 2% t'e 2an" an$ $e#ree o(
satis(a&tion a)on# t'e &usto)ers
? To (in$ out $i((erent issues o( t'e &usto)ers re*atin# to t'eir
in!est)ent an$ in 0'i&' s&'e)e t'e% 'a!e in!este$ )ore
? To e!a*uate t'e per&enta#e o( 2an"in# 2% t'e &usto)ers 0it'
HD.C Ban"
? To $eri!e t'e nee$ o( a$$itiona* pro$u&ts 2% t'e &usto)ers
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RESEARCH
METHODOLOGY
? Resear&' Pro2*e)7
+he research problem was to find out Awareness of 1lassic .ortfolio .rogramme
among customers regarding facilities pro)ided by the bans.
? T%pe o( Resear&'7
+he research conducted was descripti)e in nature.
? Sa)p*e Te&'nique7
/imple 0andom /ampling.
? Area Se*e&te$ (or resear&'7
+he sur)ey was conducted on classic customers at the Golata city.
? Sa)p*in# Units7
-ach respondent was considered as a single unit in the sur)ey
.
? Sa)p*e siLe7
+he sampling was done taing 300 units of the uni)erse i.e.# taing the total .:
1lassic .ortfolio customers of HD.C Ban"
? Co**e&tion O( Data7
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+he data that is used for this project is primary data i.e.# first hand data is used.
+he method used for collection of data is through *uestionnaire method. +he
*uestions were ased related to the problems and feedbac was recei)ed
LIMITATIONS
/ome limitations are being faced during the sur)ey was conducted. +he limitations are
listed as5
? 9ue to time and money constraints during /ummer +raining ( could not complete
the sur)ey on total classic portfolio customers of 1<00
? 1ancellation of an appointment with the customers on a particular day due to their
time constraints is one of the limitations faced during the sur)ey
? /ome customers are unwilling to gi)e any appointment or spea o)er the
telephone
? /ome customers stays abroad. (t is not e)en possible to contact them o)er
telephone or meet them personally. ;hen contacted through email by sending the
feedbac form but didn’t get any reply.
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FINDINGS &
INTERPRETATION
68 Custo)ers 'a!in# pro$u&ts o( HD.C Ban"
Sa!in#s
AF&
Current
AF&
.i1e$
Deposit
Cre$it
Car$
Mutua*
.un$s
Insuran&e /o&"er /oan NRE
NRO
AF&
Ot'ers
No8 o(
Custo)ers
Respon$e$
300 300 300 300 300 300 300 300 300 300
B o(
Custo)ers
'a!in# t'e
pro$u&ts
100= 3= 1'= 1"= 10= 1<= <= "= 4= 10=
Interpretation
The abo!e table exhibits that with 344 responded customers" all of them
are ha!ing (a!ings #5c. #part from this the customers are also ha!ing other
products offered by ,'-+ .ank.
? 6nly 37 of 344 prospecti!e customers are ha!ing the +urrent #5c.
? -ixed 'eposit counts to 897.
? The percentage of holding credit cards among +lassic customers is
8:7.
? 847 of them ha!e in!ested in $utual -und through ,'-+ .ank.
? 8;7 ha!e done their Insurance in ,'-+ (tandard %ife.
? 6ut of 344" only ;7 customers are a!ailing the locker facility.
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? In loan segment" :7 respondents ha!e taken loan through ,'-+
.ank.
? The percentage of ha!ing NR/ < NR6 #5c in ,'-+ .ank is only =7
out of 344 responded customers.
? In others product &which includes (IP" 'emat #5c" 6n %ine Trading
#5c" .ill Pay" Intra #lert) are ha!ing customers of only 847.
58 A0areness o( C*assi& Port(o*io Pro#ra))e a)on# t'e &usto)ers
Options No8 o( Custo)ers Per&enta#e
Des 90 4%=
,o 110 %%=
Tota* 5AA 6AAB
Interpretation
A0areness o( C*assi& Port(o*io Pro#ra))e
No
??B
Ees
>?B
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The diagram shows that the awareness of +lassic Portfolio Programme among
the eligible customers is !ery less. 6nly =>7 &out of 344) responded
customers said that they are fully aware of the abo!e1mentioned
programme. .ut >>7 customers replied that they do not know about classic
programme.
<8 A0areness o( (a&i*ities pro!i$e$ un$er C*assi& Port(o*io Pro#ra))e
Options No8 o( Custo)ers Per&enta#e
Des '0 40=
,o 130 "0=
Tota* 5AA 6AAB
Interpretation
#s the awareness of the +lassic Programme is less among the responded
customers" its ob!ious that facilities pro!ided by the bank under this
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programme would be unknown to them. 6nly =47 said they are aware of the
facilities" which they are enjoying under this programme and :47 replied no.
>8 Custo)erNs Satis(a&tion /e!e* re#ar$in# ser!i&e o( HD.C Ban"
Options No8 o( Custo)ers Per&enta#e
Absolutely $0 <%=
0elati)ely 100 %0=
/omewhat 30 10=
,ot at all 10 %=
Tota* 5AA 6AAB
Interpretation
<?B
?AB
6AB
?B
0=
%=
10=
1%=
30=
3%=
<0=
<%=
40=
4%=
%0=
N
o
.
o
f
R
e
s
p
o
n
d
e
n
t
s
i
n
%
A2so*ute*% Re*ati!e*% So)e0'at Not at a**
Custo)erKs Satis(a&tion /e!e*
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Regarding the customer?s satisfaction le!el about the ser!ice rendered by
,'-+ .ank" the graph represents that half of the respondents are relati!ely
satisfied@ only ;>7 said they are absolutely satisfied with the ser!ice@ while
847 replied somewhat due to personal reasons.
?8 In!est)ent )a$e t'rou#' HD.C Ban"
Options No8 o( Custo)ers Per&enta#e
Des "0 <0=
,o 140 $0=
Tota* 5AA 6AAB
Interpretation
The abo!e diagram shows that out of 344 responded customers only ;47
ha!e made their in!estment through ,'-+ .ank in different schemes. .ut
A47 of them ha!e not in!ested through this bank.
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ReasonsB
8. Not aware of ,'-+ in!estment ser!ice option.
3. 6ther banks approached the customers much earlier than P. of
,'-+ .ank does and these banks rendered good customiCed
ser!ice and support after their in!estment.
;. $ost of the customers ha!e in!ested through their personal agent
and they offer !aluable incenti!es in return.
=. (ome financial institutions also offers brokerage cost at lower
le!el.
>. Getting direct online trading options from other banks.
:. (ome customers are Priority banking customers of other banks and
their any kind of acti!ities are handled from home and office with
the help of bank representati!e.
A. In!ested before opening an #ccount with ,'-+ .ank.
9. +ustomers in!esting in %I+ feel that their in!estment is much more
reliable and secured in according to Insurance sector.
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C8 In!este$ In
Options No8 o( Custo)ers Per&enta#e
6utual 2unds 30 10=
(nsurance 3% 1<=
/(. 1% $=
Tota* CA <AB
Interpretation
#s it has been already shown that only ;47 of the respondents ha!e made
their in!estment through ,'-+ .ank. #ccordingly" the graph exhibits that
out of ;47 customers 1 8;7 ha!e in!ested in different plans of Insurance@
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847 and A7 in!ested in di!ersified schemes of $utual -und and (IP
respecti!ely.
@8 Custo)er in!este$ in $i((erent s&'e)es t'rou#' HD.C Ban"
*+T+A,
F+-DS
I-S+RA-'E SI"
Tata
+ata (nfrastructure 2und#
+ata 1ontra 2und
Sun$ara)
8/undaram /elect
6idcap 2und# /undaram
0ural (ndia 2und
8/undaram /elect
6idcap 2und
SBI
/
6agnum 1omma 2und
Hota"
Gota Ipportunities
2und# Gota 6idcap
2und
HSBC
>/:1 -*uity 2und#
8>/:1 Ad)antage (ndia
2und# 8>/:1 (ndia
Ipportunities 2und#
>/:1 Ailt 2und# >/:1
6idcap -*uity 2und
8>/:1 Ad)antage (ndia
2und
HD.C
8>921 -*uity 2und#
8>921 +I. 300 2und#
>921 1ore K /atellite
2und
8>921 Unit @ined
-ndowment .lan#
8>921 .ension .lan#
Accident (nsurance
.lan# >921 1>U::
8>921 -*uity 2und#
8>921 +I. 300 2und
ABN AMRO
.ran"*in Te)p*eton
2+ (ndia :alanced 2und#
2ranlin (ndia
Ipportunities 2und
Pru$entia* ICICI
8.rudential (1(1(
-merging /tar 2und#
.rudential (1(1(
(nfrastructure 2und
8.rudential (1(1(
9ynamic 2und#
.rudential (1(1( .ower
2und# 8.rudential (1(1(
-merging /tar 2und
Re*ian&e
80eliance Arowth 2und#
0eliance -*uity 2und#
0eliance Fision fund
80eliance Arowth 2und
UTI U+( (nfrastructure 2und
IDBI (9
2le&i ndDSP Merri** /%n&'
89/.6@ +(A-0 2und#
9/.6@ Ipportunities
2und
89/. 6errill @ynch
+(A-0 2und
Bir*a
:irla Ad)antage 2und :irla /un @ife
-ndowment K pension
.lan
.i$e*it% 2idelity -*uity 2und
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Deuts&'e
ING D%s%a
Stan$ar$ C'artere$
*ote+ ) indicates that percentages of investment among customers are more
=8 In!este$ t'rou#' ot'er .inan&ia* Institutions or Ban"s
Options No8 o( Custo)ers Per&enta#e
@(1( 33 11=
U+( :an 1% $=
(1(1( :an K icicidirect.com <3 1"=
Gota /ecurities 9 %=
(ndiabulls ' 4=
/harehan 4 3=
.ersonal Agent 43 31=
.ost Iffice 46(/7 ' 4=
Tota* 6>A @AB
Interpretation
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The percentage of in!estment made through others apart form ,'-+ .ank
is A47. 6ut of these" customers prefer most through their Personal #gent"
I+I+I .ank < icicidirect.com and to put money in %I+I.
98 Custo)ers $ea*in# 0it' ot'er 2an"s apart (ro) HD.C Ban"
Pri!ate Ban"s in In$ia B o( Dea*in#
:an of 0ajasthan
:harat I)erseas :an %=
1atholic /yrian :an
1enturion :an of .unjab
9hanalashmi :an
2ederal :an %=
(1(1( :an <%=
(9
:an 10=(ndus(nd :an %=
(,A Fysya :an %=
!ammu K Gashmir :an
Garnataa :an
Garur Fysya :an
Gota 6ahindra :an 10=
/
1ommercial and (nternational :an
/outh (ndian :an
United ;estern :an
U+( :an 30=
D-/ :an %=
.orei#n Ban"s in In$ia B o( Dea*in#
A:,BA60I :an %=
Abu 9habi 1ommercial :an
@td.
American -&press :an @td
:,. .aribas
1itiban 30=
9:/ :an @td
Nationa*iLe$ Ban"s in
In$ia
B o( Dea*in#
Allahabad :an %=
Andhra :an
:an of :aroda %=
:an of (ndia %=
:an of 6aharashtra
1anara :an 3=
1entral :an of (ndia %=
1orporation :an %=
9ena :an
(ndian :an 3=
(ndian I)erseas :an %=
Iriental :an of 1ommerce
.unjab and /ind :an
.unjab ,ational :an %=
/tate :an of :ianer K !aipur
/tate :an of >yderabad
/tate :an of (ndia 4/
7 40=/tate :an of (ndore
/tate :an of 6ysore 4=
/tate :an of .atiala
/tate :an of /aurashtra
/tate :an of +ra)ancore
/yndicate :an 1=
U1I :an 1=
Union :an of (ndia
United :an of (ndia 1%=
Fijaya :an
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9eutsche :an %=
>/:1 @td <0=
/tandard 1hartered :an 40=
Interpretation
These are the following banks in which the customers are dealing with their
seed capital apart from ,'-+ .ank. The banks are being segregated into
three different types according their nature
!. -ationali/e0 (an)$ of In0ia
2. "ri1ate (an)$ in In0ia
. Forei2n (an)$ in In0ia
The percentage has been calculated differently on three different
types of banks as because customers banking with Pri!ate or -oreign banks
might ha!e an #ccount in NationaliCed banks also.
-rom the abo!e chart it can be assumed that major percentages of
customers are dealing with (tate .ank of India in NationaliCed .anking
(egment@ with I+I+I .ank in Pri!ate .anking (egment and with (tandard
+hartered .ank in -oreign .anking (egment.
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6A8 Pro$u&ts o( ot'er 2an"s
Sa!in#s
AF&
Current
AF&
.i1e$
Deposit
Cre$it
Car$
Mutua*
.un$s
Insuran&e /o&"er /oan NRE
NRO
AF&
Ot'ers
No8 o(
Custo)ers
Respon$e$
300 300 300 300 300 300 300 300 300 300
B o(
Custo)ers
'a!in# t'e
pro$u&ts
'%= 10= <0= <0= 10= %= 30= '= %= "=
Interpretation
#s the customers are dealing with other banks apart from ,'-+ .ank" these
are the following products offered by those banks and accordingly shown
the percentage of holding the !arious products of these 344 responded
customers.
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668 Reasons (or a!ai*in# t'e (a&i*ities
Options No8 o( Custo)ers Per&enta#e
Aood customized ser)ices <" 1'=
Ild Accounts $0 <%=
1on)enience 3' 14=
,earer to the house <0 1%=
Ipened for /alary A?c 30 10=
-*uity Ad)anced A?c 10 %=
Una)ailability of locer " <=
Tota* 5AA 6AAB
Interpretation
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The customers ha!e depicted some important reasons of a!ailing the
aforementioned facilities from other banks. 6ne of the important reasons is
that they are maintaining an 6ld #ccount with other banks before becoming
a customer of ,'-+ .ank.
658 .requen&% o( transa&tion o( PB &usto)ers 0it' ot'er 2an"s
Options No8 o( Custo)ers Per&enta#e
0egularly 100 %0=
Iften "0 <0=
/ometimes <0 1%=
Iccasionally 10 %=
,e)er 0 0=
Tota* 5AA 6AAB
Interpretation
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.eing a customer of other banks" ob!iously they will do their transaction
regularly as >47 says yes. ;47 and 8>7 replied often and sometimes
respecti!ely due to some constraints.
6<8 Custo)er enIo%in# e1tra 2ene(its t'rou#' ot'er 2an"s
Apart from the facilities pro)iding by the >921 :an# the customers are also
enjoying e&tra benefits while being a part of other bans. +he benefits are enumerated as
below5
? Aood personalized ser)ice
? +aes care of the problems with helping hand by the ban representati)es
? 2acility of sa)ing money into ban through 0ecurring 9eposit
? 9oorstep baning through easy a)ailability of A+6 of concerned ban
? Unlimited withdrawal from other ban A+6 without any withdrawal charges
? Aets the facility of e)ening baning
? 1ustomers ha)ing an account with (1(1( :an gets baning hours from ' a.m to
' p.m
? Aetting the facility of .assboo instead of *uarterly statement
? U+( :an pro)ided the customers with total yearly interest credited statement
separately
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? .ro)ide At .ar che*ue for all ind of /a)ings A?c in U+( :an
CONCLUSION
In 1'th 2ebruary# 199%# the first branch of a new ban was inaugurated
called >921 :an. (t was promoted by (ndiaCs premier housing finance
institution. ,ow >921 :an is being listed as one of the leading pri)ate
bans in (ndia.
>921 :an began its operations with the mission of becoming a
;orldBclass (ndian :an# and the endea)our of fulfilling all the financial
re*uirements of the customers under one roof. ;ith this determination
>921 :an came into the maret to satisfy the needs of the profitable
customers by pro)iding products and ser)ices in most efficient way. ;ithin
the time span of 10 years the ban has made a great impact upon the
customers regarding their ser)ice and support they e&tended in enhancing
the customers profitability and apart from this# ban itself mared its
glorified path towards the success.
;ithin a short inter)al ban use used to e&periment itself by
introducing new product or new concept of mareting strategy. 0ecently
they came up with an inno)ati)e concept of 1lassic .ortfolio .rogramme
under which the customers will be getting certain benefits to further enhance
their profitability. +ill# this programme has been really a triumph for the
>921 ban as far as the baning part is concerned and it also helped in
creating a good image upon the customers.
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SUGGESTIONS
Aood relationships are pi)otal to business success. ;ith this organizational objecti)e
>921 :an tries to maintain a fine balance between high le)el of customer satisfaction
and the *uality of ser)ice pro)ided by them but it lacs in some sense. +hese are the
following suggestions that should be taen care of while upgrading the *uality of ser)ice
by which they can able penetrate more classic customers into portfolio management.
Suggestions an& $e(ommen&ations:
? +he ban should tae initiati)e in calling up the e&isting classic based
customers and try to sol)e the problems that they are facing relating to
the ser)ice *uality.
? (nspite of phenomenal success of :C*assi& Port(o*io Pro#ra))e; of
>921 ban# still lot of customers are unaware of the aforementioned
programme and this should be taen care off in order to generate more
profitable customers.
? +he ban must approach the customers personally in order to share
more of their seed capital.
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PART - II
COMPARATIDE STUDE O.
DARIOUS DA/UE ADDED
SERDICES PRODIDED BE HD.C
BANH IN COMPARISON -ITH
OTHER BANHS
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RESEARCH OBECTIVE
+he objecti)e of the project is enumerated as below5
? To #et a &o)parati!e ana*%sis o( !arious !a*ue a$$e$ ser!i&es
pro!i$e$ 2% HD.C in &o)parison to ot'er Pri!ate Ban"s8
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RESEARCH
METHODOLOGY
? Resear&' Desi#n7
+he research conducted was analytical in nature.
? Sour&e Co**e&tion O( Data7
+he data that is used for this project is secondary data. All the data are collected
from internet and )arious bans report and records.
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FINDINGS &
INTERPRETATION
68 Tota* Bran&'es in In$ia
Options Tota* Bran&'es
(1(1( :A,G "14
U+( :A,G 4%0
>/:1 :A,G 4<
/+A,9A09 1>A0+-0-9 :A,G '1
1(+( :A,G <9
(,A FD/DA :A,G <$4
(,9U/(,9 :A,G 14%
(9
:A,G 1$9GI+AG 6A>(,90A :A,G '%
>921 :A,G %<%
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58 A&&ount Openin# E1perien&e
Options Ti)e ta"en
(or a&&ount
openin#
Ti)e &o))itte$
(or re&eipt p(
-e*&o)e Hit
A&&ount )ateria*
re&ei!e$ 0it'in
(1(1( :A,G 1% J 30 mins $ days $ days
U+( :A,G 10 J 1% mins @ess than $ days $ days
>/:1 :A,G 1% J 30 mins $ days $ days
/+A,9A09 1>A0+-0-9
:A,G
1% J 30 mins 10 days ;ithin 13 days
1(+( :A,G 1% J 30 mins 10 days 10 days
(,A FD/DA :A,G 30 J <0 mins 10 days 1% days
(,9U/(,9 :A,G 10B 1% mins $ days $ days
(9
:A,G 1% J 30 mins 10 days 1% daysGI+AG 6A>(,90A :A,G 1% J 30 mins 10 days 10 days
>921 :A,G $ J 10 mins $ days $ days
Interpretation
#s the table shows that different banks ha!e different timing schedule
regarding the #ccount opening of the customers. ,'-+ .ank showed better
ser!ice in regard to other banks in a manner that it takes A to 84 mins of
initial #ccount opening and the customer recei!es the welcome kit within the
committed time made the bank. Dhile in ETI .ank < (tandard +hartered
.ank the customer does not recei!e the welcome kit within the committed
time.
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<8 Ser!i&e pro!i$e$ 2% Persona* Ban"er
Options
Does PB #reets
ent'usiasti&a**%
po*ite*%
PB area neat
&*ean 0it'
na)e p*ate
!isi2*e
PB response t'e queries
satis(a&tori*%
(1(1( :A,G 4 4 4
U+( :A,G < < <
>/:1 :A,G % % %
/+A,9A09 1>A0+-0-9
:A,G % % %
1(+( :A,G % % 4
(,A FD/DA :A,G < < <
(,9U/(,9 :A,G 3 3 3
(9
:A,G < < <GI+AG 6A>(,90A :A,G 4 4 4
>921 :A,G % 4 4
Note7 A parameter of % to 1 scale is being set to judge the le)el of effecti)eness. % T :est# < T A)erage# 1 T ;orst
Interpretation
To analyCe the ser!ice rendered by the Personal .anker" a parameter of > to
8 scale is being set to judge the le!el of efficiency and effecti!eness. The
table exhibits that all the banks perform their duty with most efficient way
to sur!i!e in this competiti!e world.
If comparison is made between (tandard +hartered .ank" ,(.+ .ank
and ,'-+ .ank@ these two banks are much more professionaliCed than ,'-+
.ank in terms of ser!ice and on this part bank needs impro!ement.
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>8 Tota* ATMs in In$ia
Options Tota* ATMs
(1(1( :A,G 3300
U+( :A,G 1'91
>/:1 :A,G 1<$
/+A,9A09 1>A0+-0-9 :A,G 1'<
1(+( :A,G 440
(,A FD/DA :A,G 101
(,9U/(,9 :A,G 300 Y 1orrespondence
(9
:A,G <9%GI+AG 6A>(,90A :A,G "1 Y 1orrespondence
>921 :A,G 1<3<
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?8 Tota* P'one Ban"in# /o&ations in In$ia
Options Tota* P'one Ban"in# /o&ations
(1(1( :A,G <$
U+( :A,G
@ocalized ,o.# but connecting directly to
6umbai
>/:1 :A,G 19
/+A,9A09 1>A0+-0-9 :A,G 4"
1(+( :A,G 3%
(,A FD/DA :A,G 3'
(,9U/(,9 :A,G ,?A
(9
:A,G 4'GI+AG 6A>(,90A :A,G +oll 2ree ,o. for ,orth (ndia K 0est of (ndia
>921 :A,G 1'9
C8 Net Ban"in# Ser!i&es
Options
Ease o(
Conne&ti!it%
Ran#e o(
Transa&tion
Requests a&tion
ta"en 0it'in
&o))itte$ ti)e
More
e((e&ti!e t'an
ot'er Ban"s
(1(1( :A,G 4 4 < <
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U+( :A,G 4 4 4 4
>/:1 :A,G % % % 4
/+A,9A09
1>A0+-0-9 :A,G % 4 4 4
1(+( :A,G 4 4 4 4
(,A FD/DA :A,G 4 4 < <
(,9U/(,9 :A,G < < < <
(9
:A,G % % 4 <GI+AG 6A>(,90A
:A,G % % 4 4
>921 :A,G % 4 < <
Note7 A parameter of % to 1 scale is being set to judge the le)el of effecti)eness. % T :est# < T A)erage# 1 T ;orst
Interpretation
6n the part of Net .anking ser!ice" the most efficient banks are ,(.+
.ank" I'.I .ank" and 0otak $ahindra .ank in comparison with ,'-+ .ank
# same parameter of scale is being used to judge to le!el of efficiency and
effecti!eness.
@8 Mo2i*e Ban"in# Ser!i&es
Options
Ease o(
Conne&ti!it%
Ran#e o(
Transa&tion
Requests a&tion ta"en 0it'in
&o))itte$ ti)e
(1(1( :A,G % % 4
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U+( :A,G < < <
>/:1 :A,G % 4 %
/+A,9A09
1>A0+-0-9 :A,G 4 4 4
1(+( :A,G % 4 4
(,A FD/DA :A,G 4 4 4
(,9U/(,9 :A,G ,?A ,?A ,?A
(9
:A,G 4 4 <GI+AG 6A>(,90A
:A,G 4 < <
>921 :A,G 4 4 4
Note7 A parameter of % to 1 scale is being set to judge the le)el of effecti)eness. % T :est# < T A)erage# 1 T ;orst
Interpretation
In $obile .anking ser!ice" the abo!e table shows that I+I+I .ank" +ITI
.ank and ,(.+ .ank pro!ide better ser!ice in compare to the ser!ice
rendered by ,'-+ .ank.
# same parameter of scale is being used to judge to le!el of
efficiency and effecti!eness.
=8 E1tra Bene(its #i!en to t'e &usto)ers apart (ro) ot'er Ban"s
=ptions Benefits pro'i&e& by the bank
ICICI BANH
i7 6oney 6ultiplier A?c
ii7 @argest networ of A+6s in (ndia
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UTI BANH
i7 .ro)iding 0eward 1ard
ii7 -asy a)ailability of A+6 anywhere in (ndia
HSBC BANH
i7 1ustomers taing loan can enjoy free Aold 1redit 1ard
ii7 2ree >ome :aning
iii7 >/:1 .ower Fintage A?c
STANDARD CHARTERED BANH
i7 2re*uent meeting with customers in 2i)e star hotels
ii7 9istributing gifts and gi)ing pri)ileges to profitable
customers from time to time
CITI BANH i7 .ro)iding 1iti :an !et Airways Aold 1ard
ING DESEA BANH
i7 2ree A+6 transactions with any ban e&cept U
ii7 .ro)iding loan at preferential rate for agricultural
e*uipments
INDUSIND BANH
i7 Gingfisher Airlines ticets at discounted rates.
ii7 6obile +op Up through A+6.
IDBI BANH
i7 /pecial loan for financing (.Is
ii7 1ustomer can open a /aba A?c with minimum balance
of 0s. 3%0
iii7 .ro)iding ;orld 1urrency 1ard for the tourists.
HOTAH MAHINDRA BANH
i7 Gota 1apital 6ultiplier .lan
ii7 Gota -dge /a)ings A?c
HD.C BANH
i7 .repaid 0efilling through A+6
ii7 .ro)iding 021 9omestic A?c to the customers
iii7 -&press loan
i)7 -nhanced -*uiAll ser)ice on demand
98 Pro)otiona* a&ti!ities t'e 2an" usua**% $oes
Options Pro)otiona* A&ti!ities
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Out$oor In$oor
(1(1( :A,G
i7 /ponsoring an e)ent
ii7 Ai)ing Ad)ertisement on
tele)ision regarding baning
information
i7 9isplaying informati)e
posters on the wall
U+( :A,G
i7 1ampaign
ii7 /ponsorship
i7 >anging out the banners
inside the ban premises
>/:1 :A,G
i7 (ndulging in social acti)ities
ii7 9istributing gifts to the
customers
i7 .ro)iding brouchers inside
the ban
/+A,9A09 1>A0+-0-9 :A,G
i7 /ponsoring )arious e)ents
ii7 9o philanthropic acti)ities
iii7 9istributing gifts to the
customers
i7 (nformati)e posters hanging
on the wall
1(+( :A,G
i7 1ontributing funds in
+sunami +ragedy 0elief 2und
ii7 2unding for primary
education
i7 .osters are being put on the
wall of the ban premises and
A+6s
(,A FD/DA :A,G
i7 Ai)ing Ad)ertisement on
tele)ision regarding baning
information
i7 .ro)iding brouchers on
demand
(,9U/(,9 :A,G
i7 /ponsoring social welfare
organizing by ,AIs
ii7 Iffer discount coupons on
certain commodities
i7 Farious information posters
are being displayed in front of
+eller counter
(9
:A,Gi7 2inanced in 2ilm industry to
promote their :rand name
ii7 Ai)ing Ad)ertisement on
tele)ision regarding baning
information
i7 -asy a)ailable of brouchers
inside the ban
GI+AG 6A>(,90A :A,G
i7 9o philanthropic acti)ities i7 9isplaying informati)e
posters on the wall and A+6s
>921 :A,G
i7 Ai)ing Ad)ertisement on
tele)ision regarding ban
information
ii7 /ponsoring )arious e)ents
iii7 Iffer discount coupons on
certain commodities
i7 >anging out the )arious
informati)e posters inside the
ban premises specially in
front of +eller counter
CONCLUSION
+he (ndian financial sector underwent a radical change during the nineties to
the beginning of 31
st
century. 2rom the relati)ely closed and regulated
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en)ironment in which agents had to operate earlier# the sector was opened up
as part of the efficiency enhancing structural policies to bring about high
sustainable longBterm growth of the economy. +he baning sector was also
not an e&ception to this rule. 6ore specifically pri)ate sector bans and
foreign bans lie ICICI Ban"+ UTI Ban"+ Stan$ar$ C'artere$ Ban"+
HSBC Ban"+ HD.C Ban"+ CITI Ban" etc differ significantly in
performance# performance being measured in terms of profitability#
efficiency in portfolio management and operating efficiency. +he
en)ironment was made friendlier for domestic pri)ate sector and foreign
bans too. As a result# many pri)ate players entered the baning sector
gi)ing rise to the heightened competiti)e pressure. Amongst them >921
:an showed its de)elopment in all respect immensely for the last ten years.
:eing aware of the current economic en)ironment is challenging# with
persistent sluggishness in industrial production and an o)erall dampening of
business confidence. +he rapid dismantling of trade barriers# decline in
se)eral international commodity prices and intensifying global competition
ha)e e&posed the (ndian corporate sector to greater ris. (n such an
en)ironment# >921 :anCs growth ha)e been dri)en by enhanced customer
ac*uisition# geographic e&pansion and new product introductions as well as
increased penetration of the e&isting customer base by enlisting on classic
portfolio programme.
(t could be belie)ed that >921 :an is well positioned in this respect
and should be able to achie)e healthy growth in long run both in terms of
business )olumes and profitability.
BIBLIOGRAPHY
? Resear&' Met'o$o*o#% 5 1. 0. Gothari.
? Statisti&a* Met'o$ 5 9r. /. .. Aupta.
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? .inan&ia* Mana#e)ent 5 (. 6. .andey.
? 9ourna*s 5 Annual 0eport of >921 :an 4300%B0"7
Annual 0eport 43004B0%7.
? -e2sites 5 www.google.co.in
www.hdfcban.com
www.hsbc.co.in
www.standardchartered.co.in
www.idbiban.com
www.iciciban.com
www.otamahindraban.com
www.citiban.co.in
www.ing)ysyaban.com
www.indusindban.com
www.utiban.com
www.information.com
ANALYSIS OF THE FINDINGS
? Awareness of 1lassic .ortfolio .rogramme among the customers is
)ery low which counts only 4%= and 40= of the respondent nows
about the facilities pro)ided by the ban under this programme.
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? %0= of the customers are relati)ely satisfied with the ser)ice rendered
by >921 :an.
? About $0= of the 1lassic customers did not in)est their money
through >921 :an due to some reasons.
? 6a&imum customers ha)e in)ested their seed capital through other
financial institutions lie @(1(# (ndiabulls# .ost Iffice 46(/7 and
/harehan etc.
? +he 1lassic .ortfolio customers are also ha)ing their account with
other :ans due to following reasons lie old account# opened for
salary a?c# good customized ser)ices# nearer to the house etc.
ANALYSIS OF THE FINDINGS
? 0egarding the total :ranches in (ndia# >921 :an is in the second
position 4%<% branches7 among these ten pri)ate bans. +he first
position is occupied by (1(1( :an with total branches of "14.
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? >921 :an showed a better ser)ice regarding account opening as it
taes $B10 mins for initial account opening and customers recei)ed the
welcome it within the committed time.
? (n total A+6s in (ndia# (1(1( :an and U+( :an leads the way
whereas >921 :an raned as third position.
? (n total .hone :aning in (ndia# >921 :an clearly leads the
position with 1'9 phone baning locations and the second position is
occupied by (9
:an.CONTENTS
C'apter7 6
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? O!er!ie0 o( Ban"in# Se&tor
C'apter7 5
? HD.C Ban"
a8 Histori&a* Pre*u$e
28 Group Me)2ers
&8 Or#aniLationa* Stru&ture
i8 Co)position o( HD.C Ban"+ Go*par" Bran&' (Ho*"ata)
$8 Mana#e)ent St%*e
e8 Distri2ution Net0or"
(8 Capita* Stru&ture
#8 Mission an$ Business Strate#%
'8 Te&'no*o#%
i8 Ris" Mana#e)ent an$ Port(o*io ,ua*it%
I8 Hu)an Resour&es
"8 Se#)entation In(or)ation
*8 Pro$u&ts an$ Mar"et
)8 Main Co)petitors
C'apter7 <
? HD.C Ban" 4 Operations
a8 Business Se#)ent Up$ate
28 .inan&ia* Hi#'*i#'ts
C'apter7>
? A&'ie!e)ents
a8 Cre$it Ratin#
C'apter7 ?
? HD.C Ban" 4 S-OT Ana*%sis
a8 Stren#t's
28 -ea"nesses
&8 Opportunities
$8 T'reats
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C'apter7C
? Port(o*io Penetration O( HD.C Ban"
!< +art 0: Cross Selling to Classi( +ortfolio Customers
a8 Intro$u&tion
28 Resear&' O2Ie&ti!es
&8 Resear&' Met'o$o*o#%
$8 .in$in#s an$ Interpretation
e8 Ana*%sis o( t'e (in$in#s
(8 /i)itations
#8 Con&*usion
'8 Su##estions
B< +art 00: Comparati'e Stu&y of >arious >alue !&&e& Ser'i(es pro'i&e& by
HDFC Bank in (omparison with =ther Banks
a8 Resear&' O2Ie&ti!es
28 Resear&' Met'o$o*o#%
&8 .in$in#s an$ Interpretation
$8 Ana*%sis o( t'e (in$in#s
e8 Con&*usion
C'apter7 @
? Anne1ure
C'apter7 =
? Bi2*io#rap'%
QUESTIONNAIRE FOR THE
CUSTOMERS
Na)e7
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Custo)er ID7
Please mar' (- .here applica&le+
1. ;hat products of >921 :an are you a)ailingX
i7 /a)ings A?c ii7 1urrent A?c iii7 2i&ed 9eposit
i)7 1redit 1ard )7 6utual 2und )i7 (nsurance
)ii7 @ocers )iii7 @oan i&7 ,0- K ,0I A?c
3. Are you aware that you ha)e been enlisted as a classic portfolio customer of our banX
i7 Des ii7 ,o
<. :eing a classic portfolio customer# are you aware of the facilities that our ban is pro)idingX
i7 Des ii7 ,o
2acilities5
Z2ree Aold 1redit 1ard# 2ree (nternational 9ebit card# reduced charges for locers and demat A?c#
opening Hero :alance A?c for your family members# better 2ore& rates# preferencial loan rates#
personalized in)estment ad)ice and ser)ices.[
4. Are you satisfied with the ser)ice that our ban is pro)idingX
i7 Absolutely ii7 0elati)ely iii7 /omewhat i)7 ,ot at all.
%. >a)e you e)er in)ested through >921 :anX
i7 Des ii7 ,o
In!este$ In EesFNo S&'e)es
6utual 2unds
(nsurance
/(.
". Any means of in)estment you did through others financial institutions apart from >921 :anX
\\\\\\\\\\\\\.....................................................................................................
\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\.
$. ;hyX
0eason5\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\
'. Apart from >921 :an what other bans are you dealing withX
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i7 ii7 iii7 i)7
9. ;hat products of other bans are you ha)ingX
i7 /a)ings A?c ii7 1urrent A?c iii7 2i&ed 9eposit
i)7 1redit 1ard )7 6utual 2und )i7 (nsurance
)ii7 @ocers )iii7 @oan i&7 ,0- K ,0I A?c
10. ;hy do you a)ail the aforementioned products from other bansX
0eason5\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\..
11. >ow often you do your transaction with other bansX
i7 0egularly ii7 Iften iii7 /ometimes i)7 Iccasionally )7 ,e)er.
13. ;hat e&tra benefits are you getting while being a customer of other bansX
i7 ii7 iii7 i)7
doc_941360119.doc