hdfc bank
TRANSCRIPT
A Project Report On
A STUDY OF HDFC BANK
SUBMITTED IN PARTIAL FULFILMENTOF
MASTER OF BUSINESS ADMINISTRATION DEGREE
MADURAI KAMRAJ UNIVERSITY, MADURAI
SUBMITTED BY:
NISAR HEMAL GOPAL
MBA –II (FINANCE)
Enrollment NumberA9A7511826
THROUGH THE DIRECTOR DDE
MADURAI KAMRAJ UNIVERSITYMADURAI- 625021
Batch 2008 - 2010
1
2ND Pg will be….
Admission order Xerox
CERTIFICATE
I hereby certify that Mr. Nisar Hemal Gopal student of MBA (Finance)
from M.K. University, Madurai has completed project work entitled as ‘A
STUDY OF HDFC BANK ‘under my guidance.
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As per my knowledge this is his original work bases on available data
and for partial fulfillment of MBA program.
Date:
ACKNOWLEDGEMENT
I take this opportunity to express my deep sense of gratitude, thanks
and regards towards all of those who have directly or indirectly helped
me in the successful completion of this project.
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I am grateful to all my friends who have helped me in the successful
completion of this project.
Last but not the least I am indebted to my PARENTS & my WIFE who
provided me their time, support and inspiration needed to prepare this
report.
Date: -10-8-2009
Place: - Mumbai
Signature
Nisar Hemal Gopal
CONTENTS
1. INTRODUCTION................................................................................
1.1 HISTORY OF BANKING.................................................
1.2 MISSION, VISION AND BUSINESS STEATEGY…..
1.3 BOARD OF DIRECTORS……………........................4
1.4 AWARDS…………………………………………….
1.5 INTEGRATED FINANCIAL SERVICES………….
1.6 BUSINESS SEGMENT…………………………….
2. PRODUCT OF HDFC BANK……………………………………….
2.1 ACCOUNTS & DEPOSITES……………………..…
2.2 LOANS……………………………………………..
2.3 CARDS……………………………………………..
2.4 INVESMENT&INSURANCE……………………..
2.5 FOREX&TRADE SERVICE………………………..
2.6 PAYMENT SERVICES…………………………......
2.7 PRIVATE BANKING………………………………
3. DEPARMENT OF HDFC BANK…………………………………
3.1 HUMAN RESOURSE DEPARTMENT………..….
3.2 MARKETING DEPARTMENT……………………
3.3 FINANCE DEPARMENT…………………………
4. SWOT ANAYSIS………………………………………………….
5. BIBLIOGRAPHY……………………………………………
HISTORY OF BANKING
Banking is nearly as old as civilization. The history of banking could be said to have
started with the appearance of money. The first record of minted metal coins was in
Mesopotamia in about 2500B.C. the first European banknotes, which was
handwritten appeared in1661, in Sweden. Cheques and printed paper money
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appeared in the 1700’s and 1800’s, with many banks created to deal with increasing
trade.
The history of banking in each country runs in lines with the development of trade
and industry, and with the level of political confidence and stability. The ancient
Romans developed an advanced banking system to serve their vast trade network,
which extended throughout Europe, Asia and Africa.
Modern banking began in Venice. The word bank comes from the Italian word “ban
co”, meaning bench, because moneylenders worked on benches in market places.
The bank of Venice was established in 1171 to help the government raise finance for
a war.
At the same time, in England merchant started to ask goldsmiths to hold gold and
silver in their safes in return for a fee. Receipts given to the Merchant were
sometimes used to buy or sell, with the metal itself staying under lock and key. The
goldsmith realized that they could lend out some of the gold and silver that they had
and charge interest, as not all of the merchants would ask for the gold and silver
back at the same time. Eventually, instead of charging the merchants, the
goldsmiths paid them to deposit their gold and silver.
The bank of England was formed in 1694 to borrow money from the public for the
government to finance the war of Augsburg against France. By 1709, goldsmith
were using bank of England notes of their own receipts.
New technology transformed the banking industry in the 1900’s round the world,
banks merged into larger and fewer groups and expanded into other country.
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BANKING STRUCTURE IN INDIA:
In today’s dynamic world banks are inevitable for the development of a country.
Banks play a pivotal role in enhancing each and every sector. They have helped
bring a draw of development on the world’s horizon and developing country like India
is no exception.
Banks fulfills the role of a financial intermediary. This means that it acts as a vehicle
for moving finance from those who have surplus money to (however temporarily)
those who have deficit. In everyday branch terms the banks channel funds from
depositors whose accounts are in credit to borrowers who are in debit.
Without the intermediary of the banks both their depositors and their borrowers
would have to contact each other directly. This can and does happen of course. This
is what has lead to the very foundation of financial institution like banks.
Before few decades there existed some influential people who used to land money.
But a substantially high rate of interest was charged which made borrowing of
money out of the reach of the majority of the people so there arose a need for a
financial intermediate.
The Bank have developed their roles to such an extent that a direct contact between
the depositors and borrowers in now known as disintermediation.
Banking industry has always revolved around the traditional function of taking
deposits, money transfer and making advances. Those three are closely related to
each other, the objective being to lend money, which is the profitable activity of the
three. Taking deposits generates funds for lending and money transfer services are
necessary for the attention of deposits. The Bank have introduced progressively
more sophisticated versions of these services and have diversified introduction in
numerable areas of activity not directly relating to this traditional trinity
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INDIAN BANKING SYSTEM
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Non-Schedule Banks
State co-op Banks
Commercial Banks
Central co-op Banks and Primary Cr. Societies
Commercial Banks
Indian Foreign
Public Sector Banks Private Sector
BanksHDFC, ICICI etc.
State Bank of India and its Subsidiaries
Other Nationalized Banks
Regional Rural Banks
Reserve Bank of India
Schedule Banks
INDIAN BANKING INDUSTRY ANALYSIS:
The banking scenario in India has been changing at fast pace from being just the
borrowers and lenders traditionally, the focus has shifted to more differentiated and
customized product/service provider from regulation to liberalization in the year
1991, from planned economy to market.
Economy, from licensing to integration with Global Economics, the changes have
been swift. All most all the sector operating in the economy was affected and
banking sector is no exception to this. Thus the whole of the banking system in the
country has undergone a radical change. Let us see how banking has evolved in the
past 57 years of independence.
After independence in 1947 and proclamation in 1950 the country set about drawing
its road map for the future public ownership of banks was seen inevitable and SBI
was created in 1955 to spearhead the expansion of banking into rural India and
speed up the process of magnetization.
Political compulsion’s brought about nationalization of bank in 1969 and lobbying by
bank employees and their unions added to the list of nationalized banks a few years
later.
Slowly the unions grew in strength, while bank management stagnated. The casualty
was to the customer service declined, complaints increased and bank management
was unable to item the rot.
In the meantime, technology was becoming a global phenomenon lacking a vision of
the future and the banks erred badly in opposing the technology up gradation of
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banks. They mistakenly believed the technology would lead to retrenchment and
eventually the marginalization of unions.
The problem faced by the banking industry soon surfaced in their balance sheets.
But the prevailing accounting practices unable banks to dodge the issue.
The rules of the game under which banks operated changed in 1993. Norms or
income Recognition, Assets classification and loan loss provisioning were put in
place and capital adequacy ratio become mandatory. The cumulative impact of all
these changes has been on the concept of state ownership in banks. It is
increasingly becoming clear that the state ownership in bank is no longer
sustainable.
The amendment of banking regulation act in 1993 saw the entry of new private
sector banks and foreign banks.
MAJOR PLAYER IN INDIA
1. HDFC BANK LTD
2. ICICI BANK LTD
3. STATE BANK OF INDIA LTD
4. PUNJAB NATOINAL BANK LTD
5. BANK OF BARODA LTD
6. FEDERAL BANK LTD
7. AXIS BANK LTD
8. ING VYSYA BANK LTD
9. IDBI BANK LTD
10. INDUSIND BANK LTD
11.YES BANK LTD
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INTRODUCTION
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INTRODUCTION
The Housing Development Finance Corporation Limited (HDFC) was amongst the
first to receive an ‘in principle' approval from the Reserve Bank of India (RBI) to
set up a bank in the private sector, as part of the RBI's liberalization of the Indian
Banking Industry in 1994. The bank was incorporated in August 1994 in the name
of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank
commenced operations as a Scheduled Commercial Bank in January 1995. HDFC is
India’s premier housing finance company and enjoys an impeccable track record in
India as well as in international markets. Since its inception in 1977, the Corporation
has maintained a consistent and healthy growth in its operations to remain the
market leader in mortgages. Its outstanding loan portfolio covers well over a million
dwelling units. HDFC has developed significant expertise in retail mortgage loans to
different market segments and also has a large corporate client base for its
housing related credit facilities. With its experience in the financial markets, a
strong market reputation, large shareholder base and unique consumer franchise,
HDFC was ideally positioned to promote a bank in the Indian environment.
HDFC Bank began operations in 1995 with a simple mission: to be a “World Class
Indian Bank.” We realized that only a single minded focus on product quality and
service excellence would help us get there. Today, we are proud to say that we are
well on our way towards that goal.
HDFC Bank Limited (the Bank) is an India-based banking company engaged in
providing a range of banking and financial services, including commercial banking
and treasury operations. The Bank has a network of 1412 branches and 3295
automated teller machines (ATMs) in 528 cities and total employees are 52687.
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14121725
2009 2010
B R ANC HE S (NOS )
SNAPSHOT
Company Background
Industry Finance - Banks - Private Sector.
Business Group HDFC Group
Incorporation Date 31/12/1994
Public Issue Date 31/12/1995
Face Value 10.0000
Company/Business Registration No INE040A01018
Key Officials CEO Aditya Puri
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HISTORY OF HDFC BANK
FOUNDERS
MR.HASMUKHBHAI PAREKH
If ever there was a man with a mission it was
Hasmukhbhai Parekh, our Founder and Chairman-
Emeritus, who left this earthly abode on November 18,
994.
Born in a traditional banking family in Surat, Gujarat, Mr.
Parekh started his financial career at Harkisandass
Lukhmidass - a leading stock broking firm. The firm
closed down in the late seventies, but, long before that,
he went on to become a towering figure on the Indian
financial scene.
In 1956 he began his lifelong financial affair with the economic world, as General
Manager of the newly-formed Industrial Credit and Investment Corporation of India
(ICICI). He rose to become Chairman and continued so till his retirement in 1972.
At the ripe age of 60, Hasmukhbhai started his second dynamic life, even more
illustrious than his first. His vision for mortgage finance for housing, gave birth to the
Housing Development Finance Corporation - it was a trend-setter for housing
finance in the whole Asian continent.
He was a true development banker. His building up HDFC without any government
assistance, is itself a brilliant chapter in financial history. His wisdom and warmth
drew people from all walks of life to him, for advice, guidance and inspiration.
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A soft spoken man of few words, Mr. Parekh nevertheless held strong and definite
views with a quiet conviction. He was always concerned with building bridges,
improving and encouraging communication between people.
He was also a writer in his own right. There are over 200 published articles by him,
full of incisive comments on finance and economics. In 1953 he brought out a
volume called: The Bombay Money Market. It detailed the intricate working of the
Indian money market. His works in Gujarati - Hirane Patro, Hirane Vadhu Patro -
occupy pride of place in Gujarati literature. In 1992, the Government of India
honoured him with the Padma Bhushan Award. The London School of Economics &
Political Science conferred on him an Honorary Fellowship.
But there was much more to the man than his financial genius. In his own
unassuming way, Hasmukhbhai devoted all his life to raising resources for
philanthropic causes. He was one of the Founder Members of the Centre for
Advancement of Philanthropy, and its Chairman till 1993. He took active interest in
the Bombay Community Public Trust, designed specifically to serve the needs of the
city's underprivileged citizens.
When Mr. Deepak Parekh took over as Chairman from Hasmukhbhai, he said:
"Taking over from H.T. Parekh is a formidable task; his vision. brought about not
only an institution, but an entire concept which has proved itself to be of lasting
importance."
In his last years, developments in the financial sector brought him some measure of
satisfaction. Says ICICI Chairman, N. Vaghul: "The most gratifying aspect about his
life is that values he cherished all his life, came into reality in the last years. opening
up the financial sector, and deregulation of lending rates were issues he stood for all
his life, and this happened before he passed away."
Farewell dear Hasmukhbhai! All of us will miss not only H.T. Parekh the financial
wizard, but much more so, the man. The only and best tribute we can pay to such an 15
individual is to try and follow in his footsteps, keeping in mind his high ideals and
philanthropic outlook.
MR. DEEPAK PAREKH
Deepak Parekh is the Chairman of HDFC, the
country’s leading housing finance company. A pioneer
in mortgage finance, he has enabled scores of Indian
middle class people owning their houses or
apartments through affordable loans.
A chartered accountant, Deepak Parekh began his
career with Ernst & Ernst Management Consultancy
Services in New York. After returning to India, he
worked with Grindlays Bank and also Chase Manhattan Bank as its assistant
representative for South Asia. Deepak Parekh joined HDFC in 1978. He was
promoted as its Managing Director in 1985 and appointed its Chairman in 1993. He
is instrumental in making the HDFC a premier housing finance institution in the
country. Deepak Parekh is also the Non-Executive Chairman of Infrastructure
Development Finance Company Ltd (IDFC), a Government of India enterprise for
infrastructure projects in 1997. He is also the Non-Executive Chairman of Glaxo
India Ltd & Burroughs Wellcome (India) Ltd and on the Board of Castrol BP India;
Hindustan Lever; Siemens Ltd, Mahindra & Mahindra and Indian Hotels Company.
He is also a non-executive, independent Director of SingTel.
Deepak Parekh has been a member of various Committees set up by the
Government of India. He was appointed Chairman of the high level expert
committee, formed to recommend measures for strengthening the Unit Scheme –
1964. The Reserve Bank of India appointed him Chairman of the Advisory Group for
Securities Market Regulation, which was tasked to compare the level of adherence
to international standards in India with that in other countries. He was also Chairman
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of the Expert Committee constituted by the Ministry of Power to look into the reform
efforts in the power sector.
Deepak Parekh has won several awards including Businessman of the Year 1996 by
Business India and the JRD Tata Corporate Leadership Award by All India
Management Association (AIMA). He was the first recipient of the Qimpro Platinum
Award for Quality for his contributions to the services sector and the youngest
recipient of the prestigious Corporate Award for Life Time Achievement by the
Economic Times. He was also conferred Padma Bhushan by the Government of
India.
HISTORY
HDFC BANK LTD was incorporated in August 1994 in the name of 'HDFC Bank
Limited’, with its registered office in Mumbai, India. HDFC Bank commenced
operations as a Scheduled Commercial Bank in January 1995.
HDFC BANK LTD was amongst the first to set up a bank in the private sector. The
bank was incorporated on 30th August 1994 in the name of ‘HDFC Bank Limited’,
with its registered office in Mumbai. It commenced operations as a Scheduled
Commercial Bank on 16th January 1995. The bank has grown consistently and is
now amongst the leading players in the industry .
HDFC is India's premier housing finance company and enjoys an impeccable track
record in India as well as in international markets. Since its inception in 1977, the
Corporation has maintained a consistent and healthy growth in its operations to
remain the market leader in mortgages. Its outstanding loan portfolio covers well
over a million dwelling units.
HDFC has developed significant expertise in retail mortgage loans to different
market segments and also has a large corporate client base for its housing related
credit facilities. With its experience in the financial markets, a strong market
reputation, large shareholder base and unique consumer franchise, HDFC was
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ideally positioned to promote a bank in the Indian environment In a milestone
transaction in the Indian banking industry, Times Bank was merged with HDFC Bank
Ltd., effective February 26, 2000.
MISSIONI. World Class Indian Bank
II. Benchmarking against international standards.
III. To build sound customer franchises across distinct businesses
IV. Best practices in terms of product offerings, technology, service levels, risk
management and audit & compliance
VISION STATEMENT OF HDFC BANK
The HDFC Bank is committed to maintain the highest level of ethical standards,
professional integrity and regulatory compliance. HDFC Bank’s business philosophy
is based on four core values such as:-
1. Operational excellence.
2. Customer Focus.
3. Product leadership.
4. People.
The objective of the HDFC Bank is to provide its target market customers a full
range of financial products and banking services, giving the customer a one-step
window for all his/her requirements. The HDFC Bank plus and the investment
advisory services programs have been designed keeping in mind needs of
customers who seeks distinct financial solutions, information and advice on various
investment avenues.
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BUSINESS STRATEGY
I. Increasing market share in India’s expanding banking
II. Delivering high quality customer service
III. Maintaining current high standards for asset quality through disciplined credit
risk management
IV. Develop innovative products and services that attract targeted customers
and address inefficiencies in the Indian financial sector.
BOARD OF DIRECTORS
PERSONDESIGNATIO
N
Mr. Jagdish Capoor Chairman
Mr. Aditya Puri Managing Director
Mr. Paresh Sukthankar Executive Director
Mr. Harish Engineer Executive Director
Mr. Keki M. Mistry Director
Mr. Ashim Samanta Director
Mr. Arvind Pande Director
Mrs. Renu Karnad Director
Mr. C M Vasudev Director
Mr. Gautam Divan Director
Dr. Pandit Palande Director
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Awards and Achievements - Banking Services
YEAR 2010
YEAR-2009
EUROMONEY
AWARDS 2009'BEST BANK IN INDIA'
Economic Times
Brand Equity &
Nielsen
Research annual
survey 2009
Most Trusted Brand - Runner Up
Asia Money 2009 'Best Domestic Bank in India'
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Awards
IBA Banking
Technology
Awards 2009
'Best IT Governance Award - Runner up'
Global Finance
Award 'Best Trade Finance Bank in India for 2009
IDRBT Banking
Technology
Excellence
Award 2008
'Best IT Governance and Value Delivery'
Asian Banker
Excellence in
Retail Financial
Services
'Asian Banker Best Retail Bank in India Award 2009 '
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INTEGRATED FINANCIAL SERVICESINTEGRATED FINANCIAL SERVICES
SECURITISATION
Future Activities
DISTRIBUTION
HDFC CHUBB GENERAL INSURANCE CO. LTD.
BUSINESS SEGMENT
HDFC Bank offers a wide range of commercial and transactional banking services
and treasury products to wholesale and retail customers. The bank has three key
business segments:
WHOLESALE BANKING SERVICES:
The Bank's target market ranges from large, blue-chip manufacturing companies in
the Indian corporate to small & mid-sized corporate and agri-based businesses. For
these customers, the Bank provides a wide range of commercial and transactional
banking services, including working capital finance, trade services, transactional
services, cash management, etc. The bank is also a leading provider of structured
solutions, which combine cash management services with vendor and distributor
finance for facilitating superior supply chain management for its corporate
customers. Based on its superior product delivery / service levels and strong
customer orientation, the Bank has made significant inroads into the banking
consortia of a number of leading Indian corporate including multinationals,
companies from the domestic business houses and prime public sector companies.
It is recognized as a leading provider of cash management and transactional
banking solutions to corporate customers, mutual funds, stock exchange members
and banks.
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RETAIL BANKING SERVICES:
The objective of the Retail Bank is to provide its target market customers a full range
of financial products and banking services, giving the customer a one-stop window
for all his/her banking requirements. The products are backed by world-class service
and delivered to the customers through the growing branch network, as well as
through alternative delivery channels like ATMs, Phone Banking, Net Banking and
Mobile Banking.
The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank
Plus and the Investment Advisory Services programs have been designed keeping
in mind needs of customers who seek distinct financial solutions, information and
advice on various investment avenues. The Bank also has a wide array of retail loan
products including Auto Loans, Loans against marketable securities, Personal Loans
and Loans for Two-wheelers. It is also a leading provider of Depository Participant
(DP) services for retail customers, providing customers the facility to hold their
investments in electronic form.
HDFC Bank was the first bank in India to launch an International Debit Card in
association with VISA (VISA Electron) and issues the Master card Maestro debit
card as well. The Bank launched its credit card business in late 2001. By September
30, 2005, the bank had a total card base (debit and credit cards) of 5.2 million cards.
The Bank is also one of the leading players in the "merchant acquiring" business
with over 50,000 Point-of-sale (POS) terminals for debit / credit cards acceptance at
merchant establishments.
TREASURY:
Within this business, the bank has three main product areas - Foreign Exchange and
Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the
liberalization of the financial markets in India, corporate need more sophisticated risk
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management information, advice and product structures. These and fine pricing on
various treasury products are provided through the bank's Treasury team. To comply
with statutory reserve requirements, the bank is required to hold 25% of its deposits
in government securities. The Treasury business is responsible for managing the
returns and market risk on this investment portfolio.
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PERSONAL BANKING
ACCOUNT & DEPOSITS SERVICE
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PRODUCT
OF
HDFC BANK
Banking should be effortless. With HDFC Bank, the efforts are rewarding. No matter
what a customer's need and occupational status, we have a range of solutions that
are second to none. Whether you're employed in a company and need a simple
Savings account or run your own business and require a robust banking partner,
HDFC Bank not only has the perfect solution for you, but also can recommend
products that can augment your planning for the future.
It includes these services: -
Saving accounts.
Current accounts.
Fix deposits.
Demat account.
Safe deposits lockers.
Savings Accounts
These accounts are primarily meant to inculcate a sense of saving for the future,
accumulating funds over a period of time. Whatever person’s occupation, bank have
confident that person will find the perfect banking solution. There some saving
accounts like: -
Regular Saving Account:
An easy-to-operate savings account that allows you to issue cheques, draw
Demand Drafts and withdraw cash. Check up on your balances from the comfort of
your home or office through Net Banking, Phone Banking and Mobile Banking. If you
need money urgently then you can take money from the ATM machine. There are
1977 ATM centers across the country.
Saving plus Account
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Introducing the best banking option for you with HDFC Bank Savings plus Account.
Now you can get access to some of the finest banking facilities with HDFC Bank's
Savings plus Account. All you have to do is maintain an Average Quarterly Balance
of Rs. 10,000/-.
Saving Max Account
Welcome to a world of convenience. Presenting Savings Max account, loaded with
maximum benefits to make your banking experience a pleasure. By maintaining an
average quarterly balance of just Rs. 25,000/- you get a host of premium services
from HDFC Bank absolutely free.
Senior Citizen Account
HDFC Bank appreciates your needs and endeavors, which is why, they present an
account especially dedicated to customer, which like a dutiful child will help you fulfill
your needs in the best manner possible.
No frills Account
In an effort to make banking simpler and more accessible for customers, bank has
introduced the 'No Frills' Savings Account, which offers customer all the basic
banking facilities. Customer can even avail of services like Net Banking, Mobile
banking free of cost. In this customer can put Zero Initial Pay-in and a Zero Balance
account
Institutional saving accounts
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A specially designed account that offers twin benefits of a savings as well as a
current account. Customer’s funds continue to earn you interest while he enjoys
hassle-free banking & a host of other features. All this and more in a Zero Balance
account.
Salary Accounts
In this account customer can get salary from where he/she doing such job and
organization or company at where the customer of the bank in doing job deposit their
salary in to the salary account a person can get salary.
There are various kinds of saving accounts in the HDFC Bank like: -
Pay roll account.
Classic salary account.
Regular salary account.
Premium salary account.
Defense salary account.
No frills salary account.
Reimbursement salary account.
Kid’s advantage account
Start saving for your child today and secure his/her future a sentence tells by the
Hdfc bank. Open a Savings Account and transfer money every month into
customer’s Kids Advantage Account and watch the savings grow as customer’s child
grows. The accumulated savings in the Kids Advantage Account can over the years
help in meeting customer child's needs.
Main features and benefits of this account are as follow:-
For their Growing Needs
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Free Education Insurance cover of Rs. 1, 00,000/- in the event of death of the
parent / guardian through vehicular accident by road, rail or air to safeguard
the future of your child.
ATM/International Debit Card will be issued for children between 7-18 years
of age in the child's name with your permission. The amount your child is able
to withdraw is Rs. 2,500/- at ATMs or spend Rs. 2,500/- at merchant
locations.
Free cash withdrawals on any other Bank's ATM*
1 free Personalised cheque book for your child.
Monitor the transactions of your child's account with the free quarterly
physical statement of account or free monthly Email Statement of account
Free Net Banking for you to monitor your child's account.
Free SMS/Email alerts informing you about the account transactions.
For their Secured Future
Standing Instruction to transfer any amount from your account to your Kid's
Advantage Account every month (Minimum value = Rs. 1,000/- & Minimum
tenure = 1 year) (Mandatory).
Once the balance in the Kid's Advantage Account reaches/exceeds Rs.
35,000/-, the amount in excess of Rs. 25,000/- will automatically be
transferred into a Fixed Deposit for 1 year 1 day, in your child's name, by
signing in for our sweep-out facility.
You can also opt for systematic investments in mutual funds from the Kid's
Advantage Account in your child's name.
Current accounts
HDFC Bank Current Account gives the power of inter-city banking with a single
account and access to more than cities. From special cheques that get treated at par
with local ones in any city where branch, faster collection of outstation cheques
(payable at branch locations), free account to account funds transfer between HDFC
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Bank accounts to Free inter-city clearing of up to 100 lakhs per month, bank’s
priority services have become the benchmark for banking efficiency.
Now, with an HDFC Bank Current Account, experience the freedom of multi-city
banking. Person can have the power of multi-location access to his account from
any of our 761 branches in 327 cities. Not only that, he can do most of his banking
transactions from the comfort of his office or home without stepping out.
There are various kinds of current account in this bank like: -
Plus current account
HDFC Bank plus Current Account gives the power of inter-city banking with a single
account and access to more than cities. Plus Current Account requires maintaining
an average quarterly balance of Rs. 100,000.
Trade current account
In today's changing business requirements, you need to transfer funds across cities,
and time is of the essence. HDFC Bank Trade Current Account gives power of inter-
city banking with a single account.
From special cheques that get treated at par with local ones in any city where bank
have a branch, to free account to account funds transfer between HDFC Bank
accounts, to free inter-city clearing of up to 50 lacs per month, bank’s priority
services have become the benchmark for banking efficiency. Trade Current Account
requires maintaining an average quarterly balance of Rs. 40,000.
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Premium current account
Business needs a partner who can manage finances while concentrate on growing
business. Form this account customer can avail benefits of inter-city banking
account that requires an average quarterly balance of only Rs. 25,000, offers
Payable-At-Par cheque book facility & FREE inter-city clearing transactions across
our network up to Rs.25 Lacs per month.
A Current Account with the benefits of accessing account from a large network of
branches, and through direct access channels - the phone, mobile, Internet and
through the ATM.
Regular current account
A Current account is ideal for carrying out day-to-day business transactions. With
the HDFC Bank Regular Current Account, customer can access account anytime,
anywhere, pay using payable at par cheques or deposit cheque at any HDFC bank
branch. It also facilitates FREE NEFT transactions & FREE RTGS collections for
faster collections in account. Regular Current Account requires to maintain an
average quarterly balance of only Rs. 10,000.
With a vast network of branches in cities all over the country, and access to a
multitude of ATM's, customer can keep track of all transactions anytime.
Reimbursement Current Account
No more paperwork, no more receipts to keep track of - a hassle-free account that
allows deposit the reimbursements receive from company/organization on a monthly
basis.
To open this account a person has to follow these processes:
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Procure an Account Opening Document (AOD) from HDFC Bank. (If person has just
joined, first request to company to open up a Salary Account for particular person).
Mention Salary Account number and Debit Card number on the AOD so that Debit
card can be linked to both, Salary Account as well as new Reimbursement Account.
Request company to directly credit cash payments to the Reimbursement Account.
RFC – Domestic Account
Full name of this account is Resident foreign currency account.
Have you accumulated foreign currency from traveling abroad frequently? Received
gifts from relatives in foreign currency? Or earned it by any other means as
approved by the Reserve Bank of India?
If so, open Resident Foreign Currency Domestic Account and manage foreign
currency efficiently. Person can choose to set up your account either in US Dollar,
Great Britain Pound or Euro.
To open this accounts a person as to follow this process: -
Choose the currency in which person wish to operate. Open account with an initial
amount as per the following-US Dollar = 250 Great Britain Pound = 200 Euro = 250
and maintain an Average Quarterly Balance of the same amount.
Flexi current account
Tired of static transaction limits during peak seasons? HDFC Bank Flexi Current
Account is the answer to changing banking needs during peak seasons.
With HDFC Bank Flexi Current Account Cash Deposit and Anywhere Transaction
limits are a multiple of the balance you maintain in Current Account. So, during peak
seasons, customer get the benefit of higher transaction limits due to the higher
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average balances maintained in account. What’s more, during lean seasons, person
need not worry about maintaining huge balances to enjoy high transaction limits,
which person anyway may not need. Flexi Current Account requires to maintain a
minimum Average Monthly Balance (AMB) of just Rs. 75,000.
Apex current account
The top position is always the desirable position. With the Apex current account,
take business to a new high. On maintaining an average quarterly balance of Rs. 10
lacs, this account makes sure person make the most of every business opportunities
coming his way. Unlimited, free, anywhere Banking experience at the APEX is
reserved for person who joints this.
Max current account
Maximum benefits and minimum hassles for customer with Max Current Account
with a Rs. 5 lacs average quarterly balance requirement, bank present to world of
privileges that helps business expand and grow. Features like maximum free
transaction limits including other beneficial features on this current account truly
enhances business potential to the Maximum.
Fix Deposits
Long-term investments form the chunk of everybody's future plans. An alternative to
simply applying for loans, fixed deposits allow to borrow from own funds for a limited
period, thus fulfilling needs as well as keeping savings secure.
People can invest his/her money into either in security market or gold or mutual fund
or into a fix deposits. People always go to that way where he/she can get more
benefits and minimum risks. So, for this purpose he has a better chance to deposits
money in to the fix deposit.
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If people believe in long-term investments and wish to earn higher interests on
his/her savings, now is the time to invest money in HDFC bank Fixed Deposit. Get
up to 9.75% on HDFC Bank Fixed Deposit with an additional 0.50% for Senior
Citizens. What's more NO PENALTY if withdraw part of the FD in times of need.
Flexibility, Security and High Returns all bundled into one offering.
Regular fix deposit
As per the rules and regulation of the bank a person can deposit their money in to a
fix deposit in the bank and can get the benefits of these facilities.
Five year tax saving fix deposit
In 2006, it was announced for the first time that Bank fixed deposits booked by an
Individual/HUF for 5 years & up to Rs. 1,00,000/- will be allowed exemption under
Sec 80C of the Income Tax Act,1961 subject to necessary declarations taken from
the Customer.
Supper saver facility
Customer can enjoy a high rate of interest along with the liquidity of a Savings
Account by opting for a Super Saver Facility on his or her savings account. Avail of
an overdraft facility of up to 75% of the value of his or her Fixed Deposit.
Sweep-in facility
Do you wish to avoid taking overdrafts, and still take advantage of your Fixed
Deposits? Then what you need is a Sweep-In Facility on savings account. Link Fixed
Deposit to Savings or Current Account and use it to fall back on in case of
emergencies. A deficit in Savings or Current Account is taken care of by using up an
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exact value from Fixed Deposit. Since deposits are broken down in units of Re 1/-,
customer will lose interest only for the actual amount that has been withdrawn.
Demat Account
Nowadays share market is becoming is the main occupation of the person. So to
avoid faulty processes demat account is really most important for the share market
and for the safety of shares it is most important.
HDFC BANK is one of the leading Depository Participant (DP) in the country with
over 8 Lac Demat accounts.
HDFC Bank Demat services offers a secure and convenient way to keep track of
securities and investments, over a period of time, without the hassle of handling
physical documents that get mutilated or lost in transit.
HDFC BANK is Depository participant both with -National Securities Depositories
Limited (NSDL) and Central Depository Services Limited (CDSL).
Safe Deposit Lockers
A Safe Deposit Locker with HDFC Bank is the solution to person’s fear. Located at
select branches in cities all over the country, bank’s lockers ensure the safe keeping
of valuables.
Eligibility
An individual (not minor), firms, limited company, associations, clubs, trusts,
societies, etc may hire a locker.
Advantages of safe deposit locker in HDFC bank
Wide Availability.
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Lockers available in various sizes. i.e. Small, Medium, Large and Extra Large
with varying rents.
Lockers are rented out for a minimum period of one year. Rent is payable in
advance.
No deposits are required to avail a locker. Just open an account and get the
locker facility.
There is a nominal annual charge, which depends on the size of the locker
and the centre in which the branch is located.
Nomination for Safe Deposit Locker
The Lockers and their contents can be nominated to people near and dear to
you.
Nomination facility is available to individual hirer of Safe Deposit Locker.
In the case of a sole hirer of a safe deposit locker, nomination can be made in
favor of only one individual.
Where the safe deposit locker is hired in the name of a minor, the nomination
shall be made by a person lawfully entitled to act on behalf of the minor.
Terms & Conditions
For obtaining a Locker at HDFC Bank you must be an account holder with
Bank.
Lockers can be allotted individually as well as jointly.
The Locker holder is permitted to add or delete names from the list of persons
who can operate the Locker and can have access to it.
Loss of Key is to be immediately informed to the concerned Branch.
LOAN
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In today’s competitive world every thing happens only with the help of money or
through the money every person need money. But some time a person has not cash
on hand at that time he needs lone either from any friend or from any financial
institute. Lone dose not mean that only lower class person needs it but also upper
class person it is needed.
As per the requirement of the every person there are much type of loans are there in
the HDFC bank.
Personal loan
A person has so many dreams but some time due to scarcity of money a dream
can’t be satisfy. So, here one solution for that person this is personal loan. From this
he/she can fulfill their needs or requirement. It can be any thing either a dream of
vacation or son/daughter’s admission to college or any wedding, so personal loan
can be helpful in this entire requirement.
As person ordered in the hotel for tea or coffee and it is immediately came fast,
same over here any person want to get a personal loan with the nominal documents
he can get the loan.
Home loan
HDFC Bank brings HDFC home loans to doorstep. With over 30 years of
experience, a dedicated team of experts and a complete package to meet all
housing finance needs, HDFC Home Loans, help people realize dream.
Vehicles loan
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Nowadays the life is being so fast, time value is becoming more important so to
reach at the destination of any business related occasion or for a boy to reach
college or any where at the fix time there are so many requirement of vehicles. But
every people have no capacity to purchase vehicles with cash so for that here in the
HDFC bank vehicles loan is available. There are many types of vehicles loan.
Types of vehicles loan:
Two wheeler loans.
New car loan.
Used car loan.
Tractor loan (for agree culture business).
Commercial vehicle loan.
So, as per the requirement of the person there are these types of loans are available
this are at the chip rate and hassel free from more documentation and other
procedure. And commercial businessman can get the benefits of the commercial
vehicles loans. Thus as per the need of different people there are vehicle loans
available. And also terms and condition are different as per the requirement.
Express loan plus
Bank offer Express Loans Plus at person Doorstep to help fulfill all his/her needs.
The procedure is simple, documentation is minimal and approval is quick. It is
helpful to person in repairing of house, School admission or also in the family
holiday.
Gold loan
With HDFC Bank's Gold Loan, person can get an instant loan against gold jewellery
and ornaments. The procedure is simple, documentation is minimal and approval is
quick. A person can get 70% loan on the value of the gold jewellery and ornaments.
There is also availability of the overdraft on the gold jewellery. With this a customer
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can get free additional services like free personalized cheque book, free
international debit card, and free net banking phone banking services.
Educational loan
Nowadays important of education becoming very high. As it important becoming
high it is becoming costly. So in the higher education some time people can not
effort a high price at a same time. So, there is education loan is also available for the
student.
A person can get loan up to 10 lacs to study in India and 20 lacs if he wants to study
in abroad. Loan available up to tenure of 7 years including moratorium period.
Loans disbursed directly to the educational institution. It is released as per fee
schedules of institutes. Exclusive Telegraphic Transfer facility available for courses
abroad. Loans available for short duration/ job oriented courses also.
Loan against security
With HDFC Bank's Loan against Securities, person can get an overdraft against
securities like Equity Shares, Mutual Fund Units(Equity, Debt, FMPs), Gold
Exchange Traded Fund(ETF), NABARD's Bhavishya Nirman Bonds, Policies issued
by LIC & Select Private Insurance Companies, NSC, KVP, UTI Bonds (ARS & US64
Bonds) and Gold Deposit Certificates, while still retaining ownership. And the best
part is that he can continue to enjoy all his shareholder benefits such as rights,
dividends and bonuses Loan available to NRIs against Shares, Mutual Funds
(equity, Debt, FMPs), US64 Bonds, Insurance Policies, NSC, and KVP.
Loan against property
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HDFC Bank brings Loan Against Property (LAP). Person can now take a loan
against residential or commercial property, to expand his business, plan a dream
wedding, and fund his child's education and much more. He can depend on bank to
meet all his business requirements even to purchase a new shop or office for
business. Loan to purchase Commercial Property (LCP) is a specially designed
product to help person expand his business without reducing the capital from his
business.
These are loans services providing by HDFC bank which are very hassle free and
really benefits for most of customer and most of customer are satisfied by the loan
services providing by the bank.
CARD SERVICES
In today’s competitive and fast time card services providing by the banks are really
very important to every person and every business needs or to take meal in to the
hotel or to purchase jewellery from the jewellery shops cards are playing good role in
the banking sectors.
Bank ranges of Cards help to meet financial objectives. So whether persons are
looking to add to his buying power, conducting cashless shopping, or budgeting his
expenditure, he will find a card that suits him.
Credit cards
A person wants many things like, a trip to Bali, a diamond ring for wife's dreams.
Some dreams can't wait. If there's something person has always wanted. If a person
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wanted fulfills his wants he can get benefits from the HDFC bank’s credit cards
facilities.
Different types of credit
Classic cards
Silver Credit Card.
Value plus Credit Card.
Health Plus Credit Card.
Premium Cards:
Gold Credit Card
Titanium Credit Card
Woman's Gold Card
Platinum Plus Credit Card
Visa Signature Credit Card
World MasterCard
Commercial Cards
Corporate Credit Card
Debit card
HDFC Bank Debit Cards give person complete and instant access to the money in
his accounts without the risk or hassle of carrying cash.
Types of debit card: -
Classic card
Easy shop international Debit card.
Premium card
Easy shop gold Debit card.
Specialized card
Easy Shop International Business Debit Card .
Easy Shop Woman's Advantage Debit Card .
Easy Shop NRO Debit Card .
Kisan Card . 42
Prepaid card
Besides offering convenience, Prepaid Cards have been tailored to answer travel
and gifting needs.
ForexPlus Cards
Prepaid Travel Card.
Gift Plus Cards
Prepaid Gift Card.
Food Plus Cards
Prepaid Food Plus card.
Money Plus Card
The Corporate Payment card
INVESMENT AND INSURANCE
Nowadays a ward investment is becoming more popular. Person invest their money
in to various schemes or in to the gold or share market etc. but some time he is in to
the difficult situation, for that bank help person invest wisely through financial and
investment services.
Types of investment: -
Mutual Funds 43
Invest through the Mutual Fund route to meet varied investment objectives.
Insurance
Traditional Plans Unit Linked Plans
HDFC children's PLAN. HDFC Unit Linked Young Star Plus II.
HDFC Money Back Plan. HDFC Unit Linked Young Star Suvidha.
HDFC Savings Assurance Plan.HDFC Unit Linked Young Star Suvidha
Plus
HDFC Assurance Plan. HDFC Unit Linked Pension.
HDFC Term Assurance Plan. HDFC Unit Linked Pension Plus.
HDFC Loan Cover Term Assurance Plan. HDFC Unit Linked Endowment Plus II.
HDFC Endowment Assurance Plan. HDFC Unit Linked Endowment
Suvidha.
HDFC Single Premium Whole of Life
InsuranceHDFC Unit Linked Endowment Suvidha
HDFC Unit Linked Enhanced Life
Protection
GENERAL AND HEALTH INSURANCE
Complete protection for business, health, travel & more.
Bonds
A secure investment avenue giving stable returns with tax benefits.
Financial Planning44
Start Now Plan investments to meet financial goals
Knowledge Centre
Profit from research and make informed investment decisions.
Equities & Derivatives
Leverage bank’s vast information repository and transact online.
Mudra Gold Bar
Buy 24 Karat gold bars made in Switzerland and certified by Assay.
FOREX AND TRADE SERVICE
Nowadays businesses becoming worldwide e.g. India to America but main problems
are about monitory transaction because at every country the currency become
changed so for that banks are playing a very important for the businesses.
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If people need to deal in foreign currency and keep tabs on exchange rates every
now and then, transfer monies to India, make payments etc., HDFC Bank has a
range of products and services that people can choose from to transact smoothly,
efficiently and in a timely manner.
Bank offering following Foreign Exchange Products and Services.
Foreign Exchange and Trade Services
The following are different methods of transacting in Foreign Exchange and remitting
money:
Travelers Cheques.
Foreign Currency Cash.
Foreign Currency Drafts.
Cheque Deposits.
Remittances.
Cash to Master.
Trade Services.
Forex Services Branch Locator.
Important guidelines and schedules.
All Foreign Exchange transactions are conducted by strictly adhering to RBI
guidelines. Depending on the nature of transaction or point of travel, people will
need to understand his Foreign Exchange limits.
PAYMENT SERVICE
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Nowadays life of a person become very stressful and he/she becoming busy with
their own business, but they have to payment for something so for that reason
bank’s payment services become started. With HDFC Bank's payment services,
person can bid goodbye to queues and paper work. Bank’s range of payment
options make it easy for pay for a variety of utilities and services.
Verified By Visa
Do you want to be worry free for your online purchases. Now you can shop securely
online with your existing Visa Debit/Credit card.
Net Safe
Now shop online without revealing your HDFC Bank Credit Card number. What
more, you can now use your HDFC Bank Debit Card also for online purchases.
Merchant Services
Accept all Visa, MasterCard, credit and Debit cards at your outlets through state of
the art POS Machines or through your website and experience hassle free payment
acceptance.
Prepaid Mobile Refill
If you are an HDFC Bank Account holder, you can now recharge your Prepaid
Mobile Phone with this service.
Bill Pay
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Pay your telephone, electricity and mobile phone bills at your convenience. Through
the Internet, ATMs, your mobile phone and telephone - with Bill Pay, our
comprehensive bill payments solution.
Visa Bill Pay
Pay your utility bills from the comfort of your home! Pay using your HDFC Bank Visa
credit card and forget long queue and late payments forever
Pay Now
Use your HDFC Bank Credit Card to pay your utility bills online, make subscriptions
and donations; no registration required. Enjoy credit free period and reward points
as per your credit card features.
Insta Pay
Pay your bills, make donations and subscribe to magazines without going through
the hassles of any registration.
Direct Pay
Shop or Pay bills online without cash or card. Debit your account directly with our
Direct Pay service!
Visa Money Transfer
Transfer funds to any Visa Card (debit or credit) within India at your own
convenience through HDFC Bank's Net Banking facility.
e-Monies National Electronic Funds Transfer
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Transfer funds from your account to other Bank accounts across India - FREE of
cost.
Online Payment of Excise & Service Tax
Make your Excise and Service Tax payments at your own convenience through
HDFC Bank's Net Banking facility.
Religious Offerings
Now donate to your favorite temple easily and securely using HDFC BANK's Net
Banking.
IMPERIA/PREFERRED/CLASSIC BANKING
As a special customer bank providing a TAJ to customer with name
imperia/preferred customer. For that bank provide a special service to their
customer. HDFC Bank's preferred/imperia Programme is the royal decree that
enhances the exclusivity that you are accustomed to. It makes you feel special at
every step, pampering with services those others can only dream about. This service
goes beyond the obvious, rises above the expected, so that the whole world can
see, that even today, the grandeur and magnificence of royalty is alive and well.
Thus as retail banking service bank providing really good and beneficial services to
their customer and as family member they are providing good services to every
customer either they are came business related or anything. So for this reason
HDFC bank playing a good role in the customer’s life for their monitory transaction.
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NRI BANKING
With a view to attract the savings and other remittance into India through banking
channels from the person of Indian Nationality / Origin who are residing abroad and
bolster the balance of payment position, the Government of India introduced in 1970
Non-Resident(External) Account Rules which are governed by the Exchange Control
Regulations.
The funds held in Non-Resident (External) Accounts (NRE Accounts) qualify for
certain benefits like exemptions from taxes in India, free repatriations facilities, etc.
Deposit types
NRI-Banking facilitates the NRI customer to open the following account types.
NRE (Non Resident External Accounts)
It can be in the form of Savings, Current or fixed deposits in Indian rupees. The
funds in this account are fully repatriable.
NRO (Non Resident Ordinary Accounts)
It can be in the form of Savings, Current or Fixed Deposits in Indian Rupees. The
funds in this account are not repatriable (only interest accrued is repatriable).
FCNR (Foreign Currency Non Resident Accounts)
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It can be in the form of fixed Deposits only, in the five major currencies, namely US
Dollars, GBP, DM, Euro, and Japanese Yen. The funds in this account are fully
repatriable.
WHOLESALE BANKING
Wholesale banking is the provision of services by banks to the like of large corporate
clients, mid-sized companies, real estate developers and investors, international
trade finance businesses and institutional customers, such as pension funds and
government entities/agencies. Also included is banking services offered to other
financial institutions. In essence, wholesale banking services usually involve high
value transactions. Wholesale banking compares with retail banking, which is the
provision of banking services to individuals.
Corporate service
Corporate Banking reflects HDFC Bank's strengths in providing our corporate clients
in India, a wide array of commercial, transactional and electronic banking products.
We achieve this through innovative product development and a well-integrated
approach to relationship management.
Large Corporate
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Supply Chain Partners
Agricultural Lending
Small & medium term enterprises
HDFC Bank understands how much of hard work goes into establishing a successful
SME. Bank also understands that business is anything but "small" and as
demanding as ever. And as business expands and enters new territories and
markets, person need to keep pace with the growing requests that come in, which
may lead to purchasing new, or updating existing plant and equipment, or employing
new staff to cope with the demand. That's why HDFC Bank has assembled products,
services, resources and expert advice to help ensure that your business excels.
The following links will help identify individual needs.
Funded Services.
Non-Funded Services.
Specialized Services.
Value Added Services.
Internet Banking.
Financial Institutions & Trusts
HDFC Bank provides financial services to:
Banks.
Financial Institutions.
Mutual Funds.
Stock Brokers.
Insurance Companies.
Commodity Businesses.
Trusts.
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Government sector
HDFC Bank acts as an active medium between the government and the customers
by means of various services. These services include:
Tax Collection wherein customers can directly pay their taxes like Direct
taxes, Indirect taxes and Sales Tax collections at their local HDFC Bank.
E-Ticketing - Helps the customer by providing him a direct access to book a
Railway Ticket online and get it home delivered.
Opening of L/C's is done by the bank on behalf of Government of India, Mints
and Presses, thus facilitating imports for the Government.
Collection of levies and taxes on behalf of Municipal Corporations i.e.
Kalyan -Dombivli Municipal Corporation, is undertaken by the Bank.
Collection of stamp duty is done via franking mode in the state's of
Maharashtra & Gujarat.
The Stamp Duty Franking Facility is available at following branches in
Maharashtra Fort, Chembur, Lower Parel, Mira Road, Thane (Talao Pali), Panvel,
Ratnagiri, Pune(FC Road), Kolhapur, Nagpur, Pimpri.
The Stamp Duty Franking Facility is available at branches in Gujarat
Disbursement of Pension to retired Employees of Central Govt and
Defence is directly done by HDFC Bank along with the disbursement of pension to
the members of EPFO (Employees Provident Fund Organisation).
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Electronic Collection of fees on behalf of DGFT is done by the bank too.
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HUMAN
RESOURCE
DEPARTMENT
HUMAN RESOURCE DEPARTMENT
“Human Resource Management function that helps managers recruit, select, train
and develop members for an organization. Obviously, HRM is concerned with the
people’s dimension in organizations.
Work force of an Organization is one of the most important inputs of components. It
is said that people are our single most important assets. Because of the unique
importance of HUMAN RESOURCE and its complexity due to ever changing
psychology, behavior and attitudes of men and women at work, in all business
concerns, there is one common element. I.e. Human personnel function, i.e.,
manpower management function is becoming increasingly specialized. The
personnel function or system can be broadly defined as the management of people
at work- management of managers and management of workers. Personnel function
is particularly interested in personnel relationship and interaction of employees-
human relations.
In a sense, management is personnel administration. Management is the
development of people, and not mere direction of material resources. Human capital
is the greatest asset of a business enterprise. The essential ingredient of
management is the leadership and direction of people. Each manager of people has
to be his own personnel man. Personnel management is not something you really
turn over to personnel department staff.
Responsibilities of Human Resource Department.
Ø HRD maintain daily attendance record through branch manager via E-mail.
Ø Take decisions for approval regarding leave notes.
Ø He takes the decision related to the recruitment, selection and training of the
candidates. He talks to the consultant related to the recruitment of the qualified
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candidates. He also does screening of the candidates, shortlist the candidate and
takes the first round of the interview.
Ø He maintains the database of the candidates to come for an interview. He also
maintains personal file of each employee. He also completes the joining
formalities of each new employee.
Ø They are taking surprising visit in every branch and collect information about
employees.
Ø He is responsible for the monthly salary of the employees as per their attendants
and passing to the Branch Manager.
Human Resource planning
This is handled by doing the planning at the beginning of every year. At the end of
the year, the Human Resource department from each Branch receives the
requirement for the person for whole year. Then the planning of recruitment and
training is done by training manager and recruiting manager which is approved from
Head of HR Department.
Recruitment
Recruitment is a process of searching for prospective candidates for the given job in
the industry. As we know it is very important for an industrial concerns to have
efficient and effective personnel with right quality and at right time and at right place
available whenever they are needed. Every organization needs employee time by
time because of promotion or retirement of an employee. For this purpose an
organization need to search for the right candidate. And so it needs to encourage
this type of right candidates whenever they require.
Sources of Recruitment
Ø Personal data of candidates and data bank maintain by the HR.
department56
Ø Campus Recruitment.
Ø Company’s own website.
Ø Placement consultants.
Ø Advertisement in the news papers like Times of India, Gujarat
Samachar.
Ø Employee reference.
Recruitment Process
Selection
Ø Selection is the process of taking individuals out of the pool of job applicants with
requisite qualifications and competence to fill jobs in the organization. It is define
as the process of differentiating between applicants in order to identify and hire
those with a greater likelihood of success in a job.
Ø Selection is based on probation base, they are taking experienced person for 6
month’s probation and for fresher the probation period is 1 year.
Ø While the selection of the senior level post, is taken by head office at Mumbai.
Training and Development
Ø Training aims at increasing the aptitudes, skills and abilities of workers to perform
specific job. It makes employees more effective and skillful. In present dynamic
world of business training is more important there is an ever present need for
training men. So that new and changed techniques may be adopted. A new and
changed technique may be taken as an advantages and improvement affected in
the old methods.
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Applicant pool
Profile Check
Shortlist Screening Interview
Ø Training is learning experience that seeks relatively permanent change in an
individual that will improve his/her ability to perform on the job.
Ø They provide “on the job” training to their employees in the branch as they select
these employees for selling various products of bank by direct marketing.
Whenever they select new candidates for any post, they use to give them on the
job work.
Ø In case of sales persons to distribute their various products, in the beginning the
person has to work under the observation of his senior then the have to go in
market to have their own experience.
Ø The time for training program for the candidate is depends up on the relevant
position of his work area. They also provide training related to customer care and
communication.
Performance Appraisal
Ø An organization’s goals can be achieve only when people put in their best efforts.
Performance appraisal may be understood as the assessment of an individual’s
performance in a systematic way. It is define as the systematic evaluation of the
individual with respect to his/her performance on the job and his/her potential for
development.
Ø To appraise the performance of the employee they have developed a credit
system on the basis of the given target to the employee. After appraising the
performance of the employee they put the grade of each employee in the
following grade criteria.
Employee Remuneration and Incentive Payments
Ø Remuneration is the compensation an employee receives in return for his/her
contribution to the organization. Remuneration occupies an important place in the
life of an employee.
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Ø At HDFC, remuneration of an employee comprises – wages and salary,
incentives.
Wages and Salary
Ø A part from various incentives and benefits, the personnel are compensated only
in terms of wages and salaries. A proper compensation in terms of this is
necessary for motivation employees for their continuous improved performance.
For all this, it is required that wages and salaries are provided well by
organization.
Ø Wages and salary refers to the establishment and implementation of sound
policies and practices of employee’s compensation. A wage and salary is the
remuneration paid for the service of labor in production periodically to an
employee. The bank is in service industry so the salary is given on monthly
basis. They use to hire certain salesman on commission base and they are
provided their salaries on commission base. While other permanent staff are
being given monthly salaries. As HDFC bank is reputed bank in market the pay
scale are as per the standard.
Ø Sales executives (coax) are being given salary of 6000 to 8000 per month. While
sales officer’s salary ranges from 15000 to 18000 per month. HDFC bank is also
giving attractive incentives as per the target. The salary of branch manager is
around 35000 per month.
Incentive
In HDFC, employees get incentives on the basis of the target given to each
employee and their area of work. They have developed the incentive structure for
the employees on the basis of point system. All the employees get the incentive
in the form cash reward.
Employees benefit
The employees of HDFC automatically become HDFC bank salary account Holders
with special benefit and privileges and receive instant salary credit. The benefit
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include international debit card, corporate card with individual liability (CCIL), access
to phone banking and internet banking, demat accounts, and host of other services
to complement their savings account. Here are some of the features of HDFC
Bank’s salary account.
Motivation
Motivation is willingness to do something conditioned by this action’s ability to satisfy
some need. Motivation is given by the responsible person, like branch manager or
team manager for better performance in the department.
Disputes and their resolution
Disputes are common in organization. In practice, disputes mainly relate to the
target only because if any employee is not achieving target he/she will not eligible for
incentive which creates frustration among them.
Every employee is free to talk to the head of the particular department if they have
any problem related to the job. Firstly, the problem is solved by the head of the
particular department and if the problem does not solved by the head of that
department then it is addressed to the HR Manager.
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MARKETING
DEPARTMENT
61
Marketing Management
The activities of a company associated with buying and selling a product or service.
It includes advertising, selling and delivering products to people. People who work in
marketing departments of companies try to get the attention of target audiences by
using slogans, packaging design, celebrity endorsements and general media
exposure.
Ajay Kelkar, Head, Marketing, HDFC Bank, said that these initiatives are especially
targeted at those consumers who are not aware about the bank's various value
added services such as direct banking facilities.
"We are going to demonstrate the advantages of net banking and mobile banking, as
these concepts are relatively new to people living in smaller towns and cities," said
Kelkar. The bank has also launched another initiative called Business Ki Baten,
which is targeted at areas where the bulk of the population comprises small
businessmen. Kelkar said that the bank would get experts to talk on a number of
issues such as value-add tax and sales tax. Bank can measure the result of a
campaign through the sales that they generate and the customers that are added.
There is a clear return on investment, which from a functional point of view gives the
team a stronger voice. Bank has also been able to reduce their ad spends by about
10-15 per cent and has also reduced the cost of acquisition Bank's focus in future
would be to enhance its database marketing initiatives. Bank plan to invest close to
Rs 12 crore to create the environment that is required to support customer
intelligence that leads to data based marketing.
HDFC has chartered an extensive Customer Lifecycle based marketing campaign
calendar for this and the forthcoming fiscal. Fractal, which specialises in predicting
the behavior of the customers in the areas of risk and marketing, would be
62
partnering HDFC Bank's marketing team in various initiatives of growing the retail
business quickly and cost effectively.
HDFC has been using analytics for taking informed marketing decisions. Fractal will
help the bank use information to reach new customers and to build, nurture and
maximize lasting customer relationships. Fractal will also help the bank solve the
problem of ever-increasing customer acquisition costs and reducing customer
loyalty. The marketing programmes would involve acquisition of customers profitably
by reducing campaign costs, cross selling various asset and liability products to the
existing customers, thereby, leveraging the existing relationships and proactively
retaining existing customers. Fractal's analytics-based marketing solutions span
which the entire lifecycle of customer relationship right from customer acquisition to
customer retention to customer value management, is expected to give HDFC an
upper hand in understanding the needs and circumstances of their customers.
Marketing Initiatives Taking By The Bank
HDFC Bank is possibly the only bank in India, and one of the very few in Asia, to
have embarked on a data-led marketing analytics campaigns initiative, using
marketing automation technology provided by Unica. Unica has been recognised by
Gartner as the leading player in this field. Through this tool, we have been able to
intelligently use the 4-5 terabytes of customer data available in its warehouse. We
have set up a team to conduct marketing campaigns in a scientific manner using
customer data, usage patterns, preferences, lifecycle, etc, the bank also conducts
event-based marketing
These initiatives also complement our media-based marketing as well as on-the-
ground marketing activities, which remain important in the bigger scheme of things.
However, the marketing analytics initiative enables us to measure the efficacy of the
campaigns, testing every campaign every step of the way, experimenting with
creatives, messages, media, etc. There are learnings that can immediately be
63
absorbed and incorporated in the next campaigns, and these campaigns in a way
provide us with information about customer choices and preferences that can be
used for mass media communication, making those more effective .
Media Vehicles Used For Send Message To Reach Target
Audience
HDFC Bank has been predominantly using direct mailers, e-mails, and SMS for
communicating our message to our target audience as they are the most cost-
effective routes of addressing our core target audiences with maximum degree of
customization possible .
Market Segmentation
Market Segmentation is defined as the process of splitting customers, or potential
customers, in a market into different groups, or segments, within which the
customers share a similar level of interest in the same or comparable sets of needs
satisfied by a distinct marketing proposition; it is also explained as a marketing
technique that targets a group of customers with specific characteristics, i.e. a
particular group that has its own distinct customer profile and buyer characteristics
so that for marketing purposes, it can be targeted separately from other segments of
the market.
It is a key ingredient for successful marketing as it simplifies the targeting,
positioning and the planning process.
A true Market Segment meets all of the following criteria: it is distinct from other
segments (heterogeneity across segments), it is homogenous within the segments
(exhibits common attributes), it responds similarly to a market stimulus and it can be
reached by a market intervention. Market Segmentation simplifies the firm’s product,
pricing, promotion and distribution strategies and also facilitates planning and
organizing function of management more easily and cost effectively; but it requires a
64
thorough understanding of the customers needs. It is referred as a tool for defining
markets and thereby allocating resources; it uses statistical techniques called factor
analysis and cluster analysis to combine attitudinal and demographic data to
develop segments that are easier to target.
Market Segmentation can be done on the basis of the location (Geographic
Segmentation); on the basis of age, income, gender and other measurable factors
(Demographic Segmentation); on the basis of lifestyle, likes, dislikes, taste and
preferences (Psychological Segmentation); and according to the history, loyalty and
responsiveness (Behavioral Segmentation).
A business must analyze the different needs of the market segments; their internal
strengths and weaknesses; external opportunities and threats; and various others
factors like the mission, vision, values, beliefs, attitudes, norms and standards of the
organization; as well as the competitors strategy, social and cultural factors,
economic environment, global perspective, demographic environment, technological
and political / legal aspects before deciding their own niche.
Philip Kotler mentioned five criteria for an effective segmentation which states
that Segmentation should be: -
1. Measurable: - it should be possible to determine the values of the variable
used for the segmentation.
2. Relevant: - it should justify the expected profits and the growth potential.
3. Accessible: - the target customers must be reachable and servable for the
organization.
4. Distinguishable: - the target audiences must be diverse and able to show
different reactions to different marketing mix.
5. Feasible: - the firm must have an ability to draw an effective marketing
program for its customers.
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Market segmentation is an effort to increase a company’s precision marketing. A
market segment consists of large identifiable group within a market with similar
wants, purchasing power, buying attitudes or buying habits. As HDFC bank is a
service sector industry they introduce different schemes for different people. Each
person is different in nature and each have differ criteria for investment like risk
factor, return, liquidity, tax benefits etc.
Target Marketing
“Market Specialization is a business term meaning the market segment to which a
particular good or service is marketed. It is mainly defined by age, gender,
geography, socio-economic grouping, or any other combination of demographics.
It is generally studied and mapped by the organization through list and reports
containing demographic information that may have an effect on the marketing of key
products / services.
A product focusing on a specific target market contrasts sharply with one, following
the market strategy of mass marketing”.
Targeting can be done by the firms by adopting a logical and systematic
methodology / steps. Which are as follows: -
STEP 1: - Identify the potential buyers: - Through proper market research and
market segmentation (it is the process of pulling apart the entire market as a whole
and separating it into manageable disparate units based on various demographic,
political, economic and social factors; it can also be customer / product / competition
related segmentation).
STEP 2: - Select the target audiences: - The factors that influence Targeting are
the Internal and External Environment. Internal environment includes the mission,
vision, values and objectives of the firm; whereas; External factors are the social,
cultural, economic, global, demographic, natural, task, technological, political and
66
legal environment. Through appropriately compiling the customers profile to decide
the 4 P’s – Product, Price, Place and Promotion and obtain the demographic,
psychological, geographic and behavioral information of the buyer. Targeting is
deciding the potential buyers, products to be offered and appropriately positioning
each product to the segment.
STEP 3: - Proper positioning of the Product: - After developing an appropriate
segmentation and target strategy; positioning strategy can be worked out effectively.
Positioning enables the firm to create a positive image, gain competitive advantage
and place the brand in the customers mind to enhance their goodwill and become
the most preferred brand.
Positioning can be in the form of product, price, promotion, service, distribution
channel, image, people, advertising, publicity, public relation or selling differentiation.
Positioning Strategy
“Positioning is the act of designing the company’s offering and image to occupy a
distinctive place in the target market’s mind.
Positioning starts with a product. A piece of merchandise, a service, a company, an
institution, or even a person. But positioning is not what you do to a product.
Positioning is what you do the mind of the prospect. That is, you position the product
in the mind of prospect. A company’s differentiating and positioning strategy must
change as the product, market, and competitors change over time. Once the
company has developed a clear positioning strategy, it must communicate that
positioning effectively.
HDFC bank have positioning strategy of “Continuing a Tradition of Trust”. It is
accurate positioning strategy because it signifies a trust with its clients. Here is
special Relationship Manager dedicated towards customer service and satisfaction
and give them guidance about various schemes which helps them to get right
67
scheme which suit their needs. In this way it continues to maintain a trust with its
clients.
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FINANCIAL
DEPARTMENT
INTRODUCTION OF FINANCE DEPARTMENT
In this modern era it is very easy to know how much important the finance is in the
business. As current position of the market is totally different from ancient where it
was very easy to get the finance. But now a days it is not so, it is very difficult task
to raise funds from market. As today people are facing lot of problem and have less
confidence on the market so it is difficult to raise fund without proper planning.
For the bank as it is a Financial Institution we can consider finance as lifeblood of
this business. The company should manage to get sufficient finance. The company
should use to keep proper planning for the finance of its own and also of the large
no. of depositors who are there with the bank. We can define financial management
as a task of acquisition and utilization of funds needed in the business in a manner
so that organizations goal can be achieved. In HDFC Bank, its chief Financial
Officer and Treasurer manage the finance. Due to proper policies and separate
management the company can have proper operation of finance.
ORGANIZATION OF FINANCIAL ACTIVITIES OF BANK
For the bank finance itself is the product now it is not an easy task to manage this
finance. As bank has to keep watch on the deposits of its millions of customers and
also it has to manage its own large financial base. As in recent it is popular “No
finance no business”, for the bank “Finance itself is business”. There are different
types of organizational structure such as group organization, line organization, line
and staff organization. HDFC Bank has line of authority and line of authority is
vertical i.e. authority passes from top to bottom and responsibility passes from
bottom to top level management.
As HDFC Bank is very big company and it has large cliental base so it is very
difficult and complicated to manage its finance in proper way. There we need of
concrete and proper policies to have proper management of it. Because of big size
of the bank one cannot manage all the accounts of it alone. So, company has to
69
appoint many different persons so that there is proper maintenance of the funds of
different persons is possible.
FINANCIAL HIGHLIGHTSRs. Lacs
Particulars 2008 - 09 2009 – 102009 – 10
Interest Income 16,332,26 16,172,9016,172,90
Interest Expense 8,911,10 7.786,307.786,30
Net Interest Income 7,421,16 8,386,608,386,60
Other Income 3,290,60 3,807,613,807,61
Net Revenues 10,711,76 12,194,2112,194,21
Operating costs 5,532,81 5,764,485,764,48
Operating Result 5,178,95 6,429,736,429,73
Provisions and Contingencies 1,879,71 2,140,592,140,59
Loan Loss Provisions 1,726,28 1,938,931,938,93
Others 153,43 201,66201,66
Profit before tax 3,299,24 4,289,144,289,14
Provision for taxation 1,054,31 1,340,441,340,44
Profit after tax 2,244,93 2,948,702,948,70
Funds :
Deposits 142,811,58 167,404,44167,404,44
Subordinated debt 6,477,80 6,353,106,353,10
Stockholders’ Equity 14,646,33 21,519,5821,519,58
Working Funds 183,270,77 222,458,57222,458,57
Loans 98,883,05 125,830,59125,830,59
Investments 58,817,55 58,607,6258,607,62
Key Ratios :
Earnings per share (Rs) 52.85 67.6067.60
Return on Average Net worth 16.12 % 16.80 %16.80 %
Tier 1 Capital Ratio 10.58 % 13.26 %13.26 %
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Total Capital Ratio 15.69 % 17.44 %17.44 %
Dividend per share (Rs) 10.00 12.00 **12.00 **
Dividend payout ratio 22.17 % 21.72 %21.72 %
Book value per share as at March 31 (Rs) 344.31 470.12470.12
Market price per share as at March 31 (Rs)*
973.40 1933.501933.50
Price to Earnings Ratio 18.42 28.6228.62
Rs. 10 Lac = Rs. 1 Million Rs. 1 Crore = Rs. 10 Million **Proposed *Source: NSE
Auditor's Report on Consolidated Financial Statements
To The Board of Directors, HDFC Bank Limited
We have examined the attached Consolidated Balance Sheet of HDFC Bank
Limited (“the Bank”) and its subsidiaries and associates (the Bank and its
subsidiaries and associates constitute “the Group”) as at 31 March 2010 and also
the Consolidated Profit and Loss Account and the Consolidated Cash Flow
Statement for the year ended on that date annexed thereto. These consolidated
financial statements are the responsibility of the Bank’s management and have been
prepared by the management on the basis of separate financial statements and
other financial information regarding components. Our responsibility is to express an
opinion on these financial statements based on our audit. We conducted our audit in
accordance with auditing standards generally accepted in India. Those standards
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by the management, as
well as evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.
71
We did not audit the financial statements of one of the subsidiaries, whose financial
statements reflect total assets of Rs. 3,371,474 Thousands as at 31 March 2010,
total revenue of Rs. 2,353,099 Thousands and net cash inflows amounting to Rs.
618,656 Thousands for the year then ended. These financial statements and other
financial information have been audited by other auditors whose report has been
furnished to us, and our opinion is based solely on the report of the other auditor.
We have also relied on the unaudited financial statements of certain associates
provided by the management and included in the consolidated financial statements.
These unaudited financial statements reflect the Group’s share of net profit of Rs.
32,740 Thousands for the year then ended.
We report that the Consolidated financial statements have been prepared by the
Bank’s management in accordance with the requirements of Accounting Standard
(AS) 21, Consolidated Financial Statements and Accounting Standard (AS) 23,
Accounting for Investments in Associates in Consolidated Financial Statements
issued by the Institute of Chartered Accountants of India.
Based on our audit and on consideration of the report of other auditor on separate
financial statements and on the consideration of the unaudited financial statements
of the associates and on the other financial information of the components, and to
the best of our information and according to the explanation given to us, we are of
the opinion that the attached consolidated financial statements give a true and fair
view in conformity with the accounting principles generally accepted in India;
(i) in the case of the consolidated balance sheet, of the state of affairs of the group
as at 31 March 2010;
(ii) in the case of the consolidated profit and loss account, of the profits of the group
for the year ended on that
date; and
(iii) in the case of the consolidated cash flow statement, of the cash flows for the
group for the year ended on that date.72
The consolidated financial statements present the
accounts of HDFC Bank Ltd. with its following
subsidiaries and associates :
Name RelationCountry of
IncorporationOwnership Interest (%)
HDFC Securities Ltd. Subsidiary India 59.0
HDB Financial Services Ltd. Subsidiary India 95.3
Atlas Documentary Facilitators Company Private Ltd.
Associate India 29.0
SolutionNET India Private. Ltd.* Associate India Nil
Softcell Technologies Ltd. Associate India 12.0
International Asset Reconstruction Company Private Ltd.
Associate India 29.4
Centillion Solutions and Services Private Ltd.
Associate India 29.9
HBL Global Private Ltd. Associate India Nil
The audited financial statements of the subsidiary companies and the un-audited
financial statements of associate companies have been drawn up to the same
reporting date as that of the Bank, i.e. March 31, 2010.
* SolutionNET India Private Ltd. ceased to be an associate with effect from May 5,
2009.
Consolidated Balance Sheet
As at March 31, 2010
73
Consolidated Profit and Loss Account
As at March 31, 2010
74
Consolidated Cash Flow Statement
As at March 31, 2010
75
Consolidated Cash Flow Statement
As at March 31, 2010
76
NOTES TO ACCOUNTS
77
78
79
80
81
82
83
84
NOTES ON PRINCIPAL ACCOUNTING POLICIES
FORMING PART OF THE CONSOLIDATED
FINANCIAL STATEMENTS
A. Principles of Consolidation:
The consolidated financial statements comprise the financial statements of HDFC
Bank Ltd. (the Bank), its subsidiaries and associates, which together constitute the
‘Group’. The Bank consolidates its subsidiaries in accordance with AS-21,
Consolidated Financial Statements, issued by the Institute of Chartered Accountants
of India on a line-by-line basis by adding together the like items of assets, liabilities,
income and expenditure. Capital reserve on consolidation represents the difference
between the Bank’s share in the net worth of the subsidiary and the cost of
acquisition at the time of making the investment in the subsidiary. Further, the Bank
accounts for investments in associates in accordance with AS-23, Accounting for
Investments in Associates in Consolidated Financial Statements, issued by the
Institute of Chartered Accountants of India, by the equity method of accounting.
B. Repo and Reverse Repo Transactions:
In a repo transaction, the bank borrows monies against pledge of securities. The
book value of the securities pledged is credited to the investment account.
Borrowing costs on repo transactions are accounted for as interest expense. In
respect of repo transactions outstanding at the balance sheet date, the difference
between the sale price and book value, if the former is lower than the latter, is
provided as a loss in the income statement.
In a reverse repo transaction, the bank lends monies against incoming pledge of
securities. The securities purchased are debited to the investment account at the
85
market price on the date of the transaction. Revenues thereon are accounted as
interest income.
In respect of repo transactions under Liquidity Adjustment Facility with RBI (LAF),
monies borrowed from RBI are credited to investment account and reversed on
maturity of the transaction. Costs thereon are accounted for as interest expense.
In respect of reverse repo transactions under LAF, monies paid to RBI are debited to
investment account and reversed on maturity of the transaction. Revenues thereon
are accounted as interest income.
HDFC Securities Ltd.
All investments of long-term nature are valued at cost. Provision is made to
recognise a diminution, other than temporary, in the value of long-term investments.
Current investments are valued at cost or market value, whichever is lower.
HDB Financial Services Ltd.
Investments which are long term in nature are stated at cost. Provisions are made
only in case of permanent diminution in the value of investment. Current investments
are valued at lower of cost and net realizable value.
C. Compensated Absences
The Company does not have a policy of encashment of unavailed leaves for its
employees. The Company provides for compensated absences in accordance with
AS-15 (revised 2005) Employee Benefits. The provision is based on an independent
external actuarial valuation at the balance sheet date.
86
D. Geographic Segments
Since the Group does not have material earnings emanating outside India, the
Group is considered to operate in only the domestic segment (India).
E. Merger of the Centurion Bank of Punjab Limited
During the year ended March 31, 2009 the Centurion Bank of Punjab got merged
with HDFC Bank Ltd. The Scheme of Amalgamation (‘the Scheme’) of Centurion
Bank of Punjab Limited (‘CBoP’ or ‘eCBoP’) with HDFC Bank Ltd. (‘HDFC Bank’ or
‘the Bank’) under section 44 A (4) of the Banking Regulation Act, 1949 which was
approved by the shareholders of both the banks on March 27, 2008 was sanctioned
by the RBI vide their order DBOD No. PSBD. 16197/16.01.131/2007- 08 dated May
20, 2008, and was effective from May 23, 2008. The appointed date of the merger
was April 1, 2008. Both the entities were banking companies incorporated under the
Companies Act, 1956 and licensed by the RBI under the Banking Regulation Act,
1949.
As per the Scheme, upon its coming into effect from the appointed date i.e. April 1,
2008, the entire undertaking of CBoP including all its assets and liabilities stood
transferred / deemed to be transferred to and vest in HDFC Bank. As per the
Scheme, in consideration of the transfer of and vesting of the undertaking of CBoP,
one equity share of HDFC Bank of the face value of Rs. 10/- each fully paid-up was
issued to members of the eCBoP for every twenty nine equity shares of the face
value of Re. 1/- each of CBoP held by them on the record date i.e. June 16, 2008.
Accordingly 6,98,83,956 equity shares of Rs. 10/- each of HDFC Bank were allotted
at par to the shareholders of CBoP vide board resolution dated June 24, 2008. The
excess of the value of net assets transferred over the paid up value of shares issued
in consideration have been adjusted in Amalgamation Reserve as per the Scheme
of Amalgamation.
87
The amalgamation has been accounted using the pooling of interest method.
Accordingly, the assets and liabilities of CBoP that vested in HDFC Bank as on April
1, 2008 were accounted at the values at which they were appearing in the books of
CBoP as on March 31, 2008 and provisions arising out of harmonization of
accounting policies and estimates, as approved by the Board of Directors of HDFC
Bank and as prescribed in the Scheme, were made for the difference between the
net value appearing in the books of CBoP and the value as determined by HDFC
Bank. Also the Bank provided for merger related expenses on a best estimate basis.
Such adjustments, as per the Scheme, were made by the Bank against the reserves
arising on amalgamation.
After accounting the assets, liabilities and reserves of CBoP and after effecting the
above adjustments, a surplus of Rs. 1,049,03 lacs arose, which was credited to
Amalgamation Reserve in accordance with the Scheme.
(Rs. lacs)
ParticularsAmoun
tAmount
Net Assets of eCBoP as on the reporting date of merger* 2,089,85
Less : 6,98,83,956 equity shares of face value of Rs. 10
each(69,88)
Less : Statutory Reserves taken over on amalgamation(218,15
)(288,03)
Excess of net assets over the paid-up value of shares issued
and Statutory Reserve1,801,82
Less : Harmonization of accounting policies and estimates (690,62)
Less : Expenses related to merger (62,17)
Amalgamation Reserve 1,049,03
88
*Net assets taken over on April 1, 2008 adjusted for options allotted by eCBoP
between April 1, 2008 till May 22, 2008.
As per AS-14, Accounting for Amalgamation, if the amalgamation is an
“amalgamation in the nature of merger”, the identity of reserves of the amalgamating
entity is required to be preserved in the books of HDFC Bank. However the balances
in Profit and Loss Account (Rs. 246,49 lacs), Securities Premium Account (Rs.
1,354,60 lacs), Capital Reserve (Rs. 65 lacs) and Investment Reserve Account (Rs.
7,02 lacs) have been credited to Amalgamation Reserve in accordance with the
scheme. As a result the balances in these accounts are lower by the aforesaid
amounts.
F. Earnings Per Equity Share
Basic and Diluted earnings per equity share have been calculated based on the net
profit after taxation of Rs. 3,003,65 lacs (previous year : Rs. 2,248,99 lacs) and the
weighted average number of equity shares outstanding during the year amounting to
436,439,573 (previous year : 424,754,825).
G. Related Party Disclosures
As per AS-18, Related Party Disclosure, issued by the Institute of Chartered
Accountants of India, the Bank’s related parties are disclosed below :
Promoter
Housing Development Finance Corporation Ltd.
Enterprises under common control of the promoter
HDFC Asset Management Company Ltd.
HDFC Standard Life Insurance Company Ltd.
HDFC Developers Ltd.
89
HDFC Holdings Ltd.
HDFC Investments Ltd.
HDFC Trustee Company Ltd.
GRUH Finance Ltd.
HDFC Realty Ltd.
HDFC Ergo General Insurance Company Ltd.
HDFC Venture Capital Ltd.
HDFC Ventures Trustee Company Ltd.
HDFC Sales Pvt. Ltd.
HDFC Property Ventures Ltd.
HDFC Asset Management Company (Singapore) Pte. Ltd.
Griha Investments
Associates
SolutionNET India Pvt. Ltd. (ceased to be an associate from May 5, 2009)
Softcell Technologies Ltd.
Atlas Documentary Facilitators Company Pvt. Ltd.
HBL Global Pvt. Ltd.
Centillion Solutions and Services Pvt. Ltd.
Kairoleaf Analytics Pvt. Ltd. (ceased to be an associate from March 30, 2009)
International Asset Reconstruction Company Pvt. Ltd.
Key Management Personnel
Aditya Puri, Managing Director
Paresh Sukthankar, Director
Harish Engineer, Director
Related Party to Key Management Personnel
Salisbury Investments Pvt. Ltd.
Sudha Engineer
H. Small and Micro Industries
90
HDFC Bank Ltd.
Under the Micro, Small and Medium Enterprises Development Act, 2006 which
came into force from October 2, 2006, certain disclosures are required to be made
relating to Micro, Small and Medium enterprises. There have been no reported
cases of delays in payments to micro and small enterprises or of interest payments
due to delays in such payments.
HDFC Securities Ltd.
On the basis of the intimations received from suppliers regarding their status under
the Micro, Small and Medium Enterprises Development Act, 2006 there are five
(previous year : nine) suppliers registered under the said Act, and there are no
amounts unpaid to these suppliers as at the year end.
HDB Financial Services Ltd.
The Company has received intimation from a supplier regarding their status under
the Micro, Small and Medium Enterprises Development Act, 2006 and amount
unpaid as at March 31, 2010 is Rs. 0.3 lacs (previous year : Rs. 36 lacs).
91
NOTES ON CORPORATE GOVERNANCE
Compensation Committee
The Compensation Committee reviews the overall compensation structure and
policies of the Bank with a view to attract, retain and motivate employees, considers
grant of stock options to employees and reviews compensation levels of the Bank’s
employees vis-à-vis other banks and industry in general.
The Bank’s compensation policy provides a fair and consistent basis for motivating
and rewarding employees appropriately according to their job role / size,
performance, contribution, skill and competence.
Mr. Jagdish Capoor, Mr. Ashim Samanta, Mr. Gautam Divan and Dr. Pandit Palande
are the members of the Committee. The Committee is chaired by Mr. Jagdish
Capoor. All the members of the Committee other than Mr. Capoor are independent
directors. The Committee met 6 (Six) times during the year.
Investor Grievance (Share) Committee
The Committee approves and monitors transfer, transmission, splitting and
consolidation of shares. Allotment of shares to the employees on exercise of stock
options granted under the various Employees Stock Option Schemes which are
made in terms of the powers delegated by the Board in this regard, are placed
before the Committee for ratification. The Committee also monitors redressal of
92
complaints from shareholders relating to transfer of shares, non-receipt of Annual
Report, dividends, etc.
The Committee consists of Mr. Jagdish Capoor, Mr. Aditya Puri and Mr. Gautam
Divan. The Committee is chaired by Mr. Capoor. The powers to approve share
transfers and dematerialisation requests have been delegated to executives of the
Bank to avoid delays that may arise due to non-availability of the members of the
Committee.
As on March 31, 2010, 78 instruments of transfer representing 4346 shares were
pending and since then the same have been processed. The details of the transfers
are reported to the Board of Directors from time to time.
During the year under review 1888 complaints were received from the shareholders.
All the complaints were attended to and as on 31st March 2010 no complaints
remained unattended. Besides 10,907 letters were received from the shareholders
relating to change of address, nomination requests, ECS / NECS Mandates, queries
relating to annual reports and amalgamation, requests for revalidation of dividend
and fractional warrants and other investor related matters. These letters have also
been responded to.
The Committee met 15 (fifteen) times during the year.
Risk Monitoring Committee
The Committee has been formed as per the guidelines of Reserve Bank of India on
Asset Liability Management / Risk Management Systems. The Committee develops
Bank’s credit and market risk policies and procedures, verifies adherence to various
risk parameters and prudential limits for treasury operations and reviews its risk
monitoring system. The Committee also ensures that the Bank’s credit exposure to
any one group or industry does not exceed the internally set limits and that the risk is
prudentially diversified.
93
The Committee consists of Mrs. Renu Karnad, Mr. Aditya Puri, Mr. C. M. Vasudev
and Mr. Paresh Sukthankar. The Committee is chaired by Mrs. Renu Karnad.
The Committee met 6 (six) times during the year.
COMPLIANCE WITH NON-MANDATORY REQUIREMENTS
a) Board of Directors
The Bank maintains the expenses relating to the office of non-executive Chairman of
the Bank and reimburses all the expenses incurred in performance of his duties.
Pursuant to Section 10(2A) of the Banking Regulation Act, 1949, all the directors,
other than the Chairman and/or whole-time director, cannot hold office continuously
for a period exceeding 8 (eight) years.
b) Remuneration Committee
The Bank has set-up a Compensation Committee of Directors to determine the
Bank’s policy on remuneration packages for all employees. The Committee
comprises majority of independent directors. Mr. Jagdish Capoor is the Chairman
of the Committee and is not an independent Director.
e) Training of Board Members
The Bank’s Board of Directors consists of professionals with expertise in their
respective fields and industry. They endeavor to keep themselves updated with
changes in global economy and legislation. They attend various workshops and
seminars to keep themselves abreast with the changes in the business environment.
f) Mechanism for evaluating non-executive Board Members
94
The Nomination Committee evaluates the non-executive Board members every
year. The performance evaluation of the members of the Nomination Committee is
done by the Board of Directors excluding the Directors being evaluated.
g) Whistle Blower Policy
The Bank has adopted a Whistle Blower Policy pursuant to which employees of the
Bank can raise their concerns relating to fraud, malpractice or any other activity or
event which is against the interest of the Bank or society as a whole.
The Audit and Compliance Committee of the Bank has reviewed the functioning of
the Whistle Blower mechanism. None of the personnel has been denied access to
the Audit and Compliance Committee.
CATEGORIES OF SHAREHOLDERS AS AT MARCH 31, 2010
Sr. No. CategoryNo. of
Shares
% to Share
Capital
1 Promoters * 108643220 23.73
2J P Morgan Chase Bank ( Depository
for ADS )77694909 16.97
3Deutsche Bank Trust Company
Americas ( Depository for GDR )3407493 0.74
4 Foreign Institutional Investors 121692561 26.59
5
Foreign Bodies / Foreign Nationals /
Overseas Corporate Bodies
and Non Resident Indians
5724016 1.25
6 Financial Institutions / Banks 220484 0.05
7 Insurance Companies 34892409 7.62
8 Mutual Funds / UTI 20004918 4.37
95
9 Indian Companies 41503470 9.07
10 Individuals 43959792 9.60
TOTAL 457743272 100.00
* None of the equity shares held by the Promoter Group are under pledge.
SHARE PRICE / CHART
The monthly high and low quotation of Bank’s equity shares traded on
Bombay Stock Exchange Ltd (BSE) and National Stock Exchange of India Ltd
(NSE) during FY 2009-10 and its performance vis-à-vis BSE SENSEX and S&P
CNX NIFTY respectively is as under:
96
97
MEANS OF COMMUNICATION
The quarterly and half-yearly unaudited financial results are published in 'Business
Standard' in English and 'Mumbai Sakal' in Marathi (regional language). The results
are also displayed on the Bank’s web-site at www.hdfcbank.com. The
shareholders can visit the Bank’s web-site for financial information, shareholding
information, dividend policy, key shareholders’ agreements, Memorandum and
Articles of Association of the Bank, etc. The web-site also gives a link to
www.sec.gov where the investors can view statutory filings of the Bank with the
Securities and Exchange Commission, USA.
CODE FOR PREVENTION OF INSIDER TRADING
The Bank has adopted a share dealing code for the prevention of insider trading in
the shares of the Bank. The share dealing code, inter alia, prohibits purchase / sale
of shares of the Bank by employees while in possession of unpublished price
sensitive information in relation to the Bank.
98
99
100
101
102
103
104
DIVIDEND PER SHARE (Rs.) (Rs.)
PROFIT AFTER TAX (Rs. Crores)
105
EARNING PER SHARE (Rs.)
Shareholding Pattern as on 31st March, 2010
106
107
WHAT IS SWOT ANALYSIS?SWOT Analysis is a strategic planning method used to evaluate the Strengths,
Weaknesses, Opportunities, and Threats involved in a project or in a business
venture. It involves specifying the objective of the business venture or project and
identifying the internal and external factors that are favorable and unfavorable to
achieving that objective. The technique is credited to Albert Humphrey, who led a
convention at Stanford University in the 1960s and 1970s using data from Fortune
500 companies.
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SWOT ANALAYSIS OF HDFC BANK
STRENGTHS
HDFC is the strongest and most venerable play on Indian mortgages over the
long term. The management of the bank is termed to be one of the best in the
country.
HDFC has differentiated itself from its peers with its diversified network and
revamped distribution strategy
HDFC has been highly proactive in passing on the cost and benefit to
customers.
Besides the core business, HDFC’s insurance, AMC, banking, BPO, and real
estate private equity businesses are also growing at a rapid pace and the
estimated value of its investments/subsidiaries explains ~30% of HDFC’s
market capitalization.
High degree of customer satisfaction.
Lower response time with efficient and effective service.
Dedicated workforce aiming at making a long-term career in the field.
Products have required accreditations.
Superior customer service vs. competitors
Large share of low-cost deposits, higher net interest margin
Better quality of assets, NPA of 0.4 per cent
Free float available, FIIs can buy its stock
Higher profitability
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WEAKNESSES
High dependence on individual loans.
Major stake held by American financial groups which are under stress due to
economic slowdown.
Customer service staff needs training.
Processes and systems, etc need to be better managed
Management covers insufficient.
Sectoral growth is constrained by low unemployment levels and competition
for staff
Marginal international presence
No next line of leadership
Not very aggressive in M&A space, growing only organically
Possible takeover target
OPPORTUNITIES
Fast growing insurance business in the country.
Untapped rural markets.
Could extend to overseas broadly
Fast-track career development opportunities on an industry-wide basis.
An applied research centre to create opportunities for developing techniques
to provide added-value services.
Unique partnership to create job opportunities for IFBI’s PGDBO students
HDFC bank automates business processes with Staff ware; HDFC Bank
anticipates major cost savings whilst maintaining high levels of customer
service thanks to new enterprise software agreement.
HDFC Bank plans to set up a non-banking finance company (NBFC) to
undertake fund-based activities.
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In recent times, India has witnessed entry of many international banks like
CITI Bank, YES Bank etc which posses an external entrant threat to HDFC
Bank – as this Banks are known for their art of working and maintain high
standards of customer service.
After showing a significant growth overall, India is able to attract many
international financial & banking institutes, which are known for their state of
art working and keeping low operation costs.
THREATS
Loss of market share to commercial banks and HFC’s
Higher than expected increase in funding cost
Risk of fraud and NPA accretion due to increase in interest rates and fall in
property prices is inherent to the mortgage business
Lack of infrastructure in rural areas could constrain investment.
High volume/low cost market is intensely competitive.
Very high competition prevailing in the industry
Extension overseas holds a lot of risk!
Threat from credit card collections dept.
Varying and In-Convenient ECS dates.
Unlike Government Banks, an account needs a minimum balance of
Rs.10,000
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COMPETITIVE SWOT ANALYSIS
STRENGTHS WEAKNESSES
O
P
O
R
T
U
N
I
T
I
E
S
S – O Strategies
Strength:
Large Capital base.
Opportunity:
Market Expansion.
Strategy:
Deep Penetration into Rural
Market.
W – O Strategies
Weakness:
Workforce Responsiveness.
Opportunity:
Outsourcing of Non – Core
Business.
Strategy:
Outsource Customer Care & other
E-Helps.
THREATS
S – T Strategies
Strength: Low operating costs
Threat: Increased Competition from
others Pvt. Banks.
Strategy: Steps to Ensure Loyalty by
old Customers.
W – T Strategies
Weakness: Not Equal to International
Standards.
Threat: Entry of many Foreign Banks.
Strategy: Consider additional benefits
Detailed Analysis112
Strength - Opportunity Analysis
Strength:
It is well know that HDFC Bank has the largest Authorised Capital Base in the
Banking System in India i.e. having a total capacity to raise Rs. 19,000,000,000
(Non – Premium Value).
Opportunity:
Seeing the present financial & economic development of Indian Economy
and also the tremendous growth of the Indian Companies including
the acquisition spree followed by them, it clearly states the expanding
market for finance requirements and also the growth in surplus disposal income
of Indian citizens has given a huge rise in savings deposits – from the above
point it is clear that there is a huge market expansion possible in banking sector
in India.
Strategy:
From the analysis of Strength & Opportunity the simple and straight possible
strategy for HDFC Bank could be - to penetrate into the rural sector of India for
expanding its market share as well as leading all other Pvt. Banks from a great
gap.
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Strength - Threat Analysis
Strength:
HDFC Bank is not only known for large capital but also for having a low
operations cost though having huge number of branches and services provided.
Threat:
After showing a significant growth overall, India is able to attract many
international financial & banking institutes, which are known for their state of art
working and keeping low operation costs.
Strategy:
To ensure that HDFC Bank keeps going on with low operation cost & have
continuous business it should simply promote itself well & provide quality service
so as to ensure customer loyalty, therefore guaranteeing continuous business.
Weakness - Opportunity Analysis
Weakness:
It is well known that workforce responsiveness in banking sector is very low in
Indian banking sector, though HDFC Bank has better responsible staff but it still
lacks behind its counterparts like HSBC, CITI BANK, YES BANK etc.
Opportunity:
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In the present world, India is preferred one of the best places for out – sourcing
of business process works and many more.
Strategy:
As international companies are reaping huge benefits after out-sourcing there
customer care & BPO’s, this same strategy should be implemented by HDFC
Bank so as to have proper customer service without hindering customer
expectations.
Weakness - Threat Analysis
Weakness:
Though having a international presence, HDFC Bank has not been able to keep
up the international standards in providing customer service as well as banking
works.
Threat:
In recent times, India has witnessed entry of many international banks like
CITI Bank, YES Bank etc which posses an external entrant threat to HDFC
Bank – as this Banks are known for their art of working and maintain high
standards of customer service.
Strategy:
After having new entrants threat, HDFC Bank should come up with More
additional benefits to its customer or may be even reduce some fees for any
additional works of customers.
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NEWS RELEASE
Electronic Religious Offering
HDFC Bank ties up with Golden Temple, Amritsar for online donation
Mumbai, February 8, 2010: HDFC Bank, one of the premier banks in the country
signed an agreement with Shiromani Gurdwara Parbandhak Committee for offering
e-collection through HDFC Bank Payment Gateway.
Mr. A. Rajan, Country Head-Operations, HDFC Bank and Mr. Avtar Singh Makkar,
President Shiromani Gurdwara Parbandhak Committee formally launched the
payment gateway.
Devotees of Golden Temple who were unable to make trip to Amritsar for any
reason, can now have the satisfaction of instantaneously getting their donations
reach Golden Temple through a user friendly secure website feature of HDFC Bank.
There are large numbers of devotees based across the globe who can now avail this
facility. The website offers a variety of payment options to the devotees to make their
offerings, which includes direct debit to their accounts with the HDFC Bank, or pay
by a debit card or a credit card of any Bank.
Speaking on the occasion, Mr. A. Rajan, Country Head - Operations, HDFC Bank,
said, “India is a spiritually enlightened country and HDFC Bank has always used
technology that touches lives of our customers in all the spheres. This tie-up will
enable lakhs of devotees of Golden Temple spread across the world, to conveniently
send their offerings to the holy shrine using HDFC Bank’s secured net banking
services. It also enables the devotees to select the specific purpose for which the
donation is made."
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“We welcome this initiative by HDFC Bank as it offers devotees a convenient way of
showering their gratitude”, said Mr. Avatar Singh Makkar, President, Shiromani
Gurdwara Parbandhak Committee.
HDFC Bank has pioneered the concept of electronic religious offering and is already
offering this facility to major temples across the country. The Bank has already tied-
up with 37 religious organizations including, temples, churches, gurudwaras and
mosques pan India. Some of the religious organizations already availing this facility
through HDFC Bank are Mata Vaishnodevi Temple, Shree Jagannath Temple,
Shree Sidhivinayak Temple, Shanta Durga Temple, Shirdi Sai Baba Sansthan,
Nathdawara Mandir, SomnathTemple, Guruvayuoor Temple, Rama Krishna
International Mission, Shree Anantha Padmanabha Temple etc.
HDFC Bank now has 147 branches in Punjab. The Bank is well poised to offer its
proven technology based products to all the leading temples in Punjab to enable
them reach out to their devotees. For this purpose, HDFC Bank has designed a
special product for Religious institutions to make the donation process simple and
easy for devotees across the world. The Bank has also designed a special
collections and payment services for the Temple Administration for its daily
operations.
Euromoney declares HDFC Bank ‘Best Private Banking
Services overall’ in India
-Also adjudged ’Best Local Bank in India’ for the 2nd year in a row-
Mumbai, February 17, 2010: HDFC Bank, one of India‟s premier banks, has been
declared the „Best Private Banking Services overall„ in the Euromoney‟s annual
global Private Banking and Wealth Management Poll - 2010. The survey also
recognized HDFC Bank as the „Best Local Bank in India‟ for the second
consecutive year. 117
According to Euromoney, HDFC Bank's nomination as „Best Private Banking
Services‟ indicates the Bank‟s excellence in both advisory and portfolio
management across a range of asset classes and investment styles.
The rankings are based on qualitative and quantitative survey supported by
quantitative data provided by the participating banks. The survey also includes
competitors' perceptions of the best performing providers in defined client and
product categories.
Commenting on this recognition, Abhay Aima, Group Head – Equities, Private
Banking, Third Party Products, NRI & International Consumer Business said “It
is an honor for us to be conferred with these awards. At HDFC Bank, we understand
the challenges in the market and strongly believe that we have the right business
strategy to address the growing market needs and capitalize on opportunities to
build partnerships for mutual development with our clients. The growth in private
banking in India is inclusive and we are witnessing growth from Tier 2 and Tier 3
cities also.”
He further added “In the process we have also outperformed all global private
banks operating in India. Interestingly even in Asia, in the private bank category, we
have moved up in rankings, to 10th position in the current year from 23rd in the
previous year.”
The survey results reflect a global trend where new regional/ national players along
with a few leading international banks are now making good inroads in the global
Private Banking space. Euromoney Private Banking and Wealth Management
Services is the global industry benchmark for the wealth management industry and
cover over 60 countries every year, as well as global and regional awards. The
results are based on combinations of performance figures and nominations. The
year Euromoney received a total of 1800 votes, up almost 10% on last year‟s poll.
Votes cast represented $6.8 trillion of assets under management.
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HDFC Bank opens its 4000th ATM in the country
Mumbai, February 21, 2010: HDFC Bank, one of India’s premier banks, has
opened its 4000th ATM in the country at Mangalore. This is the Bank's 8th ATM in
the city and 1165th in the South overall. The new ATM located at Vijaya Mahal, NH
17, Surathkal was inaugurated by Mr. K. Padmanabha, President, CAMPCO Ltd.,
Mangalore.
With the introduction of "Faster ATMs" an HDFC Bank customer can, at any time of
the day, now do cash withdrawal at any HDFC Bank ATM in 40% less time. The time
thus saved is utilized for logical cross sell and targeted marketing to the customers.
The customers can also do other transactions on the ATM like credit card payment,
cheque status enquiry, transfer funds between accounts, viewing account balances
and mini statements.
Speaking on the occasion Mr. Rahul Bhagat, Country Head - Retail Liabilities,
Marketing & Direct Banking Channels said, “We have always believed in using
technology to enhance customer experience and the fact that over 80% of our
regular customers transact at the ATM is proof that adoption of such innovations is
very high. It is a matter of great satisfaction for us that we have 4,000 such ATMs in
service today and will continue to expand in future."
“Best Retail Bank”
The Asian Banker declares HDFC Bank the “Best Retail Bank” in India
Ø HDFC Bank wins for the 4th year in a row
Ø More than 130 retail financial institutions participated from 22 countries across the Asia Pacific, Gulf and Central Asian regions
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Mumbai, March 29, 2010: HDFC Bank, one of India’s premier banks, has won The Asian Banker's ’Best Retail Bank in India’ award this year. Beating a host of other competitors in Asia Pacific, Gulf Cooperation Council (GCC) and Central Asia on a range of parameters, the Bank has won the ’Best Retail Bank in India’ award for the fourth year in a row. The Bank also emerged best in the “Automobile Lending” sector.
Some of the parameters that winners were measured on:
Ø Outstanding annual performance of the retail banking unit
Ø Sustainability as a franchise over a long period of time and across economic cycles
Ø A well-defined franchise in the chosen marketplace
Ø Transparency and accountability of business model
Ø Ethical banking
Ø Clear sales and execution skills at the product level
Ø Rigorous risk management capabilities
Ø Superior business and operational processes and technology
Ø Strong penetration and efficiency of distribution channels
Ø Focus on developing human resources to support the bank’s strategy
Announcing the Asian Banker Excellence awards 2009, the publication has
observed in its communication to the company, ”HDFC Bank has passed all
stringent screening and requirements throughout the Excellence in Retail Financial
Services evaluation process and been granted the awards.”
The Asian Banker Excellence in Retail Financial Services Programme was instituted
in 2001 on the premise that an outstanding player in the retail financial services
industry should build business franchises that are sustainable, competitive and
profitable over a period of time.
120
- First bank ever to retail silver bars in India -
HDFC Bank retails silver bars this Akshaya Tritiya
Mumbai, May 13, 2010: HDFC Bank, one of the premier banks in the country will
retail into silver bars on the auspicious occasion of Akshaya Tritya this year. HDFC
Bank is the first ever bank to sell silver bars in India after following the huge success
in gold coins / bars.
HDFC Bank ”Pure Silver‟ bars will be imported from Switzerland. Each bar weighing
50gms will carry a 99.99% Assay certification, signifying highest level of purity as per
international industry standards. The launch provides Indian customers an easy and
reliable way of buying silver, a popular investment option, without any worries about
the purity of the item purchased. The bank aims to sell a total of 100 to 150 kgs of
the silver bars through 80-85 of its branches spread over 21 cities. The bank is one
of the leading players as far as gold is concerned. Last year it sold around 440kgs
gold during Akshaya Tritya.
HDFC Bank will keep its branches functional on Akshaya Tritya which falls on
Sunday this year to enable its customers and the public at large purchase gold and
silver on this auspicious day.
Mr. Seshan Ramakrishnan, Head, Retail Liabilities Product Group, said, “We
have always endeavored to provide a variety of secured investment and saving
products to our customers. Silver has been traditionally the most favoured form of
investment for Indians next to gold. In fact, India, even today is amongst the highest
consumers of Silver in the world. Through the „Pure Silver‟ offer we hope to provide
customers a convenient and reliable way of purchasing silver.”
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BIBLIOGRAPHY
BOOKS REFFERED:
Management Accounting – Chaudhary & Chopde
Principles of Banking - Bandgar
Research Methodology – C.R.Kothari
WEBSITES REFFERED:
www.wikipedia.com
www.hdfcbank.com
www.rbi.in
www.nyse.com
www.google.co.in
REPORTS/ARTICLES REFFERED:
Annual report of HDFC BANK 2010
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