An Organizational study At HDFC Bank

HDFC Bank Ltd

INTRODUCTION TO STUDY

Organizational Studies is designed to provide a broad understanding of the political, social,

and economic organizations that make up modern society. Organizational Studies emphasizes

a sociological perspective, but incorporates a multi-disciplinary field of study. The major

introduces students to a range of theories and methods that social scientists use in the analysis

of organizations. Courses are chosen to strengthen an emphasis in administration and

management, and from the disciplines of Economics, Political Science, Communication,

Community & Regional Development, Agricultural & Resource Economics, History, and of

course, Sociology. Majors in Organizational Studies will be prepared for a variety of career

options. The area of study lends itself to a career in management, or to further professional

training for a Master‘s degree in public or private management. The program offers an

opportunity to develop a multidisciplinary approach to the understanding of modern society.

Organisation is the process of identifying and grouping the work to be performed,

defining, and deliberating responsibilities and the authority and establishes relationship for the

purpose of enabling people to work most effectively together in accomplishing the objectives.

Need for the Study

Organization Studies provides you with a critical understanding of organizational behavior and

its theoretical foundations, with a specific focus on organizational complexity and dynamics. It

is designed for those seeking a sound theoretical basis in organization studies, a deeper level

of understanding about how organizations deal with complexity and dynamics and an advanced

level study that will generate transferable skills and facilitate employment in a great variety of

organizations.

GARDEN CITY COLLEGE OF SCIENCE & MANAGEMENT STUDIES Page1

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OB JE CT I V E S OF STUDYING THE ORGANIZATION
The primary purpose of this study is to fulfillment of the requirements for the degree of MBA

(Finance).For this connection each student of this particular course is required to undertake

training in a relevant organization selected by them, for a period of 4-6 weeks. The secondary

purpose of this internship is to understand how the theoretical knowledge can be applied to the

practical situations and examine an organization‘s financial issues and identify

itsopportunities/ problems and also suggest corrective measures. This internship is also veryne

cessary to gain confidence and become aware of the mechanism of an organization. As an

internee I want to achieve following objectives during my internship and organization study:

1. To familiarize with a business organization.

2. To familiarize with the different departments in the organization and their functioning.

3. To enable myself to understand how the key business process are carried out in

organization.

4. To understand how information is used in an organization for decision making at

various levels.

5. To relate theory with practice.

6. To gain professional experience in an actual testing environment..

7. To develop my attitude conducive to effective interpersonal relationships.

8. To acquire good work habits and sense of responsibility.

9. To enhance my learning experience by application of fundamental concepts previously

learned.

10. To observe, analyze and interpret the relevant data competently and in a useful

manner.


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METHODOLOGY OF ORGANISATIONAL STUDY

Primary data

Primary data were collected from discussions with the Managerial Head of the various

departments.

Secondary data

Secondary data were obtained from the annual report, from the website and other concerned

books.

.

SCOPE AND SIGNIFICANCE OF ORGANISATIONAL STUDY ON HDFC BANK

In this study, the researcher analyzed the overall functioning of the firm and also the financial

performance of the enterprise. The researcher made a moderate attempt to have the SWOT

analysis of the organization study on HDFC bank. It aim at understand the company

establishment organisation structure department, techniques, marketing strategies and the

advantage it is having over the competitions

The study gave more emphasis on the process that takes place in various

departments in HDFC Bank. Organisational structure and management of various departments

of HDFC Bank are taken for the purpose of study.

In a broad sense the scope of this project work is an attempt to know

about the organisation as a whole and also about the functions and practices of the

organisation and duties and responsibilities of different staffs. The study helps to understand

the improvements, the working conditions, work environment of the organisation. Sufficient


HDFC Bank Ltd

attempt has been to cover almost all facets of this organisation and to understand the complex

factors that are functioning within the organisation

LIMITATIONS OF ORGANISATIONAL STUDY

 Time limit, a major constraint.

 As per the company rules many information was not disclosed.

 As the managers are busy in their daily schedules it is not possible to us to spend

more time in the interaction and discussion with them.

 The inherent limitation of secondary data is unavoidable.


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INDUSTRY PROFILE

A bank is a financial institution that provides banking and other financial

services to their customers. A bank is generally understood as an institution which provides

fundamental banking services such as accepting deposits and providing loans. There are also

nonbanking institutions that provide certain banking services without meeting the legal

definition of a bank. Banks are a subset of the financial services industry.

A banking system also referred as a system provided by the bank which

offers cash management services for customers, reporting the transactions of their accounts

and portfolios, throughout the day. The banking system in India should not only be hassle free

but it should be able to meet the new challenges posed by the technology and any other

external and internal factors. For the past three decades, India‘s banking system has several

outstanding achievements to its credit. The Banks are the main participants of the financial

system in India. The Banking sector offers several facilities and opportunities to their

customers. All the banks safeguard the money and valuables and provide loans, credit, and

payment services, such as checking accounts, money orders, and cashier‘s Cheque the banks

also offer investment and insurance products. As a variety of models for cooperation and

integration among finance industries have emerged, some of the traditional distinctions

between banks, insurance companies, and securities firms have diminished. In spite of these

changes, banks continue to maintain and perform their primary role—accepting deposits and

lending funds from these deposits.

The soundness of any economy depends on the soundness of the banking system

prevailing there. In India we have a very good banking system well regulated and

directed by the Reserve Bank of India (RBI). It comprises of RBI – the central bank,


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public sector banks, private banks, foreign banks and co-operative banks. In India

there are more than 450 million bank accounts, but it is just 45 percent of the total

population. Majority of the population are still away from the reach of the banking

services and many who have an account just holds a ‗no-frills account‘. There is a

long way for Indian banks to go. They have to extent their service to more people as

well as improve the quality of the service they provide. Indian banks while targeting

earnings should also consider other objectives like inclusive growth and solvency.

Excessive stress on improving profits should not tempt the banks to go for high risky

ventures. In order to maintain the credibility of the Indian banking system, RBI has

come out with various regulatory measures. Such measures including the application

of Basel norms have proved to be highly effective during the time of global financial

crisis. While many big banking giants of US and Europe crumbled, Indian banks

stood without much damage. The credit goes to the prudent measures taken by the

Reserve Bank of India and the policies of the Ministry of Finance.

The era since independence has seen many positive developments in the Indian

banking sector. The policy makers, which comprise the RBI, Ministry of Finance and

related government and financial sector regulatory entities, have made several

notable efforts to improve regulation in the sector. The sector now compares

favorably with banking sectors in the region on metrics like growth, profitability and

non-performing assets (NPAs).

Currently, there are 88 scheduled commercial banks (SCBs) - 27 public sector banks

(that is with the Government of India holding a stake), 31 private banks (these do not


HDFC Bank Ltd

have government stake; they may be publicly listed and traded on stock exchanges)

and 38 foreign banks operating in India. They have a combined network of over 55,000

branches and 44,000 ATMs. According to a report by ICRA Limited, a rating agency,

the public sector banks hold over 70 percent of total assets of the banking industry, with

the private and foreign Banks holding 20.2% and 9.8 % respectively.

Indian banking has undergone a total

transformation over the last decade. Moving seamlessly from a manual, scale-

constrained environment to a technologically-leading position, it has been a

miracle. Nowhere in the world has such a transformation taken place in such a

short span of time with such a low cost. Financial sector reforms since 1991 has

brought in drastic changes in the banking industry. Banks have become more

service oriented, customer-focused and technologically advanced in the last

decade. The entry of private banks and foreign banks has increased the

competition in the sector. Today in addition to the traditional banking services,

banks cater a variety of financial products and services to its customers such as

insurance products, mutual funds, credit cards, etc. In addition, the areas in which

banks make their investment has also became wider. Today banks are dealing

with a lot of derivatives products, futures and options etc. They also face the

exchange rate risk. Since banks indulge themselves in granting big loans to

corporate houses engaged in international business, any fluctuations in the world

economy will affect their pay back. The stiff competition and social obligations has

forced the banks to grant credit to persons and entities with low credit worthiness.


HDFC Bank Ltd

Banking sector reforms since 1991

brought significant progress on regulatory side. Banking is undoubtedly one of the

most regulated industries globally and the rules governing bank capital are one of

the most prominent aspects of such regulation.

Need of the Banks

Before the establishment of banks, the financial activities were handled by

money lenders and individuals. At that time the interest rates were very high. Again there were

no security of public savings and no uniformity regarding loans. So as to overcome such

problems the organized banking sector was established, which was fully regulated by the

government. The organized banking sector works within the financial system to provide loans,

accept deposits and provide other services to their customers. The following functions of the

bank explain the need of the bank and its importance:

To provide the security to the savings of customers.

To control the supply of money and credit

To encourage public confidence in the working of the financial system, increase

savings speedily and efficiently.

To avoid focus of financial powers in the hands of a few individuals and institutions.

To set equal norms and conditions (i.e. rate of interest, period of lending etc) to all

types of customers

History of Indian Banking System


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The first bank in India, called The General Bank of India was established in

the year 1786. The East India Company established The Bank of Bengal/Calcutta (1809), Bank

of Bombay (1840) and Bank of Madras (1843). The next bank was Bank of Hindustan which

was established in 1870. These three individual units (Bank of Calcutta, Bank of Bombay, and

Bank of Madras) were called as Presidency Banks. Allahabad Bank which was established in

1865 was for the first time completely run by Indians. Punjab National Bank Ltd. was set up in

1894 with headquarters at Lahore. Between 1906 and 1913, Bank of India, Central Bank of

India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. In 1921, all

presidency banks were amalgamated to form the Imperial Bank of India which was run by

European Shareholders. After that the Reserve Bank of India was established in April 1935.

At the time of first phase the growth of banking sector was very slow.

Between 1913 and 1948 there were approximately 1100 small banks in India. To streamline the

functioning and activities of commercial banks, the Government of India came up with the

Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per

amending Act of 1965 (Act No.23 of 1965). Reserve Bank of India was vested with extensive

powers for the supervision of banking in India as a Central Banking Authority. After

independence, Government has taken most important steps in regard of Indian Banking Sector

reforms. In 1955, the Imperial Bank of India was nationalized and was given the name "State

Bank of India", to act as the principal agent of RBI and to handle banking transactions all over

the country. It was established under State Bank of India Act, 1955. Seven banks forming

subsidiary of State Bank of India was nationalized in 1960. On 19th July, 1969, major process

of nationalization was carried out. At the same time 14 major Indian commercial banks of the

country were nationalized. In 1980, another six banks were nationalized, and thus raising the

number of nationalized banks to 20. Seven more banks were nationalized with deposits over


HDFC Bank Ltd

200 Crores. Till the year 1980 approximately 80% of the banking segment in India was under

government‘s ownership. On the suggestions of Narsimhan Committee, the Banking

Regulation Act was amended in 1993 and thus the gates for the new private sector banks were

opened. The following are the major steps taken by the Government of India to Regulate

Banking institutions in the country:-

1949: Enactment of Banking Regulation Act.

1955: Nationalization of State Bank of India.

1959: Nationalization of SBI subsidiaries.

1961: Insurance cover extended to deposits.

1969: Nationalization of 14 major Banks.

1971: Creation of credit guarantee corporation.

1975: Creation of regional rural banks.

1980: Nationalization of seven banks with deposits over 200 Crores.

Post-Independence

The partition of India in 1947 had adversely impacted the economies of Punjab

and West Bengal, and banking activities had remained paralyzed for months. India's

independence marked the end of a regime of the Laissez-faire for the Indian banking. The

Government of India initiated measures to play an active role in the economic life of the nation,

and the Industrial Policy Resolution adopted by the government in 1948 envisaged a mixed

economy. This resulted into greater involvement of the state in different segments of the

economy including banking and finance.

The major steps to regulate banking included:


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In 1948, the Reserve Bank of India, India's central banking authority, was

nationalized, and it became an institution owned by the Government of India.

In 1949, the Banking Regulation Act was enacted which empowered the Reserve

Bank of India (RBI) "to regulate, control, and inspect the banks in India."

The Banking Regulation Act also provided that no new bank or branch of an

existing bank may be opened without a license from the RBI, and no two

banks could have common directors.

Nationalization

By the 1960s, the Indian banking industry has become an important tool to facilitate the

development of the Indian economy. At the same time, it has emerged as a large employer,

and a debate has ensured about the possibility to nationalize the banking industry. Indira

Gandhi, the-then Prime Minister of India expressed the intention of the Government of India

(GOI) in the annual conference of the All India Congress Meeting in a paper entitled "Stray

thoughts on Bank Nationalization". The paper was received with positive enthusiasm.

Thereafter, her move was swift and sudden, and the GOI issued an ordinance and nationalized

the 14 largest commercial banks with effect from the midnight of July 19, 1969. Jayaprakash

Narayan, a national leader of India, described the step as a "Masterstroke of political

sagacity" Within two weeks of the issue of the ordinance, the Parliament passed the Banking

Companies (Acquisition and Transfer of Undertaking) Bill and it received the presidential

approval on 9 August, 1969. A second step of nationalization of 6 more commercial banks

followed in 1980. The stated reason for the nationalization was to give the government more

control of credit delivery. With the second step of nationalization, the GOI controlled around

91% of the banking business in India. Later on, in the year 1993, the government merged New


HDFC Bank Ltd

Bank of India with Punjab National Bank. It was the only merger between nationalized banks

and resulted in the reduction of the number of nationalized banks from 20 to 19. After this, until

the 1990s, the nationalized banks grew at a pace of around 4%, closer to the average growth

rate of the Indian economy. The nationalized banks were credited by some; including Home

minister P. Chidambaram, to have helped the Indian economy withstand the global financial

crisis of 2007-2009.

Liberalization

In the early 1990s, the then Narsimha Rao government embarked on a policy of

liberalization, licensing a small number of private banks. These came to be known as New

Generation tech-savvy banks, and included Global Trust Bank (the first of such new

generation banks to be set up), which later amalgamated with Oriental Bank of 24 Commerce,

Axis Bank (earlier as UTI Bank), ICICI Bank and HDFC Bank. This move along with the rapid

growth in the economy of India revolutionized the banking sector in India which has seen rapid

growth with strong contribution from all the three sectors of banks, namely, government banks,

private banks and foreign banks. The next stage for the Indian banking has been setup with the

proposed relaxation in the norms for Foreign Direct Investment, where all Foreign Investors in

banks may be given voting rights which could exceed the present cap of 10%, at present it has

gone up to 49% with some restrictions. The new policy shook the banking sector in India

completely. Bankers, till this time, were used to the 4-6-4 method (Borrow at 4%; Lend at 6%;

Go home at 4) of functioning. The new wave ushered in a modern outlook and tech-savvy

methods of working for the traditional banks. All this led to the retail boom in India. People not

just demanded more from their banks but also received more. Currently (2007), banking in


HDFC Bank Ltd

India is generally fairly mature in terms of supply, product range and reach-even though reach

in rural India still remains a challenge for the private sector and foreign banks. In terms of

quality of assets and capital adequacy, Indian banks are considered to have clean, strong and

transparent balance sheets as compared to other banks in comparable economies in its region.

The Reserve Bank of India is an autonomous body, with minimal pressure from the

government. The stated policy of the Bank on the Indian Rupee is to manage volatility but

without any fixed exchange rate-and this has mostly been true. With the growth in the Indian

economy expected to be strong for quite some time-especially in its services sector-the

demand for banking services, especially retail banking, mortgages and investment services are

expected to be strong.

1949: Enactment of Banking Regulation Act.

1955: Nationalization of State Bank of India.

1959: Nationalization of SBI subsidiaries.

1961: Insurance cover extended to deposits.

1969: Nationalization of 14 major Banks.

1971: Creation of credit guarantee corporation.

1975: Creation of regional rural banks.

1980: Nationalization of seven banks with deposits over 200 Crores.

Recent Trends

Currently banking in India is generally fairly mature in terms of supply, product

range and reach-even though reach in rural India still remains a challenge for the private

sector and foreign banks. In terms of quality of assets and capital adequacy, Indian

banks are considered to have clean, strong and transparent balance sheets relative to


HDFC Bank Ltd

other banks in comparable economies in its region. The Reserve Bank of India is an

autonomous body, with minimal pressure from the government. With the growth in the

Indian economy expected to be strong for quite some time-especially in its services

sector-the demand for banking services, especially retail banking, mortgages and

investment services are expected to be strong. One may also expect mergers and

acquisitions (M&As), takeovers, and asset sales.

An outline of the Indian Banking structure may be presented as follows:-

1. Reserve banks of India.

2. Indian Scheduled Commercial Banks.

a) State Bank of India and its associate banks.

b) Twenty nationalized banks.

c) Regional rural banks.

d) Other scheduled commercial banks.

3. Foreign Banks

4. Non-scheduled banks.

5. Co-operative banks.

1 .Reserve bank of India

The reserve bank of India is a central bank and was established in April 1, 1935 in accordance

with the provisions of reserve bank of India act 1934. The central office of RBI is located at

Mumbai since inception. Though originally the reserve bank of India was privately owned, since

nationalization in 1949, RBI is fully owned by the Government of India. It was inaugurated with

share capital of Rs. 5 Crores divided into shares of Rs. 100 each fully paid up. RBI is governed


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by a central board (headed by a governor) appointed by the central government of India. RBI

has 22 regional offices across India. The reserve bank of India was nationalized in the year

1949. The general superintendence and direction of the bank is entrusted to central board of

directors of 20 members, the Governor and four deputy Governors, one Governmental official

from the ministry of Finance, ten nominated directors by the government to give representation

to important elements in the economic life of the country, and the four nominated director by

the Central Government to represent the four local boards with the headquarters at Mumbai,

Kolkata, Chennai and New Delhi. Local Board consists of five members each central

government appointed for a term of four years to represent territorial and economic interests

and the interests of cooperative and indigenous banks. The RBI Act 1934 was commenced on

April 1, 1935. The Act, 1934 provides the statutory basis of the functioning of the bank. The

bank was constituted for the need of following:

- To regulate the issues of banknotes.

- To maintain reserves with a view to securing monetary stability

- To operate the credit and currency system of the country to its advantage.

Functions of RBI as a central bank of India are explained briefly as follows:

Bank of Issue: The RBI formulates, implements, and monitors the monitory policy. Its main

objective is maintaining price stability and ensuring adequate flow of credit to productive sector.

Regulator-Supervisor of the financial system: RBI prescribes broad parameters of banking

operations within which the country‘s banking and financial system functions. Their main

objective is to maintain public confidence in the system, protect depositor‘s interest and provide

cost effective banking services to the public.

Manager of exchange control: The manager of exchange control department manages the

foreign exchange, according to the foreign exchange management act, 1999. The manager‘s


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main objective is to facilitate external trade and payment and promote orderly development and

maintenance of foreign exchange market in India.

Issuer of currency: A person who works as an issuer, issues and exchanges or destroys the

currency and coins that are not fit for circulation. His main objective is to give the public

adequate quantity of supplies of currency notes and coins and in good quality.

Developmental role: The RBI performs the wide range of promotional functions to support

national objectives such as contests, coupons maintaining good public relations and many

more.

Related functions: There are also some of the related functions to the above mentioned main

functions. They are such as, banker to the government, banker to banks etc….

• Banker to government performs merchant banking function for the central and the state

governments; also acts as their banker.

• Banker to banks maintains banking accounts to all scheduled banks.

Controller of Credit: RBI performs the following tasks:

• It holds the cash reserves of all the scheduled banks.

• It controls the credit operations of banks through quantitative and qualitative controls.

• It controls the banking system through the system of licensing, inspection and calling for

information.

• It acts as the lender of the last resort by providing rediscount facilities to scheduled banks.

Supervisory Functions: In addition to its traditional central banking functions, the Reserve

Bank performs certain non-monetary functions of the nature of supervision of banks and

promotion of sound banking in India. The Reserve Bank Act 1934 and the banking regulation

act 1949 have given the RBI wide powers of supervision and control over commercial and co-

operative banks, relating to licensing and establishments, branch expansion, liquidity of their


HDFC Bank Ltd

assets, management and methods of working, amalgamation, reconstruction and liquidation.

Promotional Functions: With economic growth assuming a new urgency since independence,

the range of the Reserve Bank‘s functions has steadily widened. The bank now performs a

variety of developmental and promotional functions, which, at one time, were regarded as

outside the normal scope of central banking. The Reserve bank was asked to promote banking

habit, extend banking facilities to rural and semi-urban areas, and establish and promote new

specialized financing agencies.

Bank Rate 9.00% (w.e.f. close Decreased from 9.50% to

ofbusiness of 9.00% which was continuing

17/04/2012) since 13/02/2012

4.75% (wef

10/03/2012) - Decreased from 5.50%which was
Cash Reserve Ratio
announced on continuing since 24/01/2012
(CRR)
24/01/2012

Decreased from
23%(w.e.f. 11/08/2012)
24% which was
Statutory Liquidity Ratio (SLR) (announced on
continuing since
31/07/2012)
18/12/2010

Decreased from 8.50% which
8.00% (w.e.f.
Repo Rate under LAF was continuing since
17/04/2012)
25/10/2011

Reverse Repo Rat 7.00% (w.e.f. Decreased from 7.50% which was

e under LAF 17/04/2012) continuing since 25/10/2011


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2. Indian Scheduled Commercial Banks.

Commercial banks form a significant part of the country‘s Financial Institution System.

Commercial Banks are those profit seeking institutions which accept deposits from general

public and advance money to individuals like household, entrepreneurs, businessmen etc. with

the prime objective of earning profit in the form of interest, commission etc. The operations of

all these banks are regulated by the Reserve Bank of India, which is the central bank and

supreme financial authority in India. The main source of income of a commercial bank is the

difference between these two rates which they charge to borrowers and pay to depositors.

Examples of commercial banks are ICICI Bank, State Bank of India, Axis Bank, and HDFC

Bank.

4. Foreign banks

The foreign banks in India are slowly but steadily creating a niche for themselves. With the

globalization hitting the world, the concept of banking has changed substantially over the last

couple of years. Some of the foreign banks have successfully introduced latest technologies in

the banking practices in India. This has made the banking business in the country more smooth

and interesting for the customers. The concept of foreign banks in India has changed the

prevailing banking scenario in the country. The banking industry is now more competitive and

customer-friendly than before. The foreign banks have brought forth some innovations and

changes in the banking industry of the country.


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4. Non-scheduled banks

The banks which are not registered in the list of central bank under its charter are known as

non-scheduled banks. They are not bound to perform banking services according to the

policies and instructions of central bank e.g. Bank of Punjab was a non-scheduled bank.

These banks do not fulfill the required qualifications of a scheduled bank as prescribed by the

central bank. They also do not enjoy the public confidence. In many countries, many non-

scheduled banks are also working.

"Non-scheduled bank in India" means a banking company as defined in clause (c) of section 5

of the Banking Regulation Act, 1949 (10 of 1949), which is not a scheduled bank".

5. Co-operative banks

According to the International Co-operative Alliance Statement of co-operative identity, a co-

operative is an autonomous association of persons united voluntarily to meet their common

economic, social, and cultural needs and aspirations through a jointly-owned and

democratically-controlled enterprise. Co-operatives are based on the values of self-help, self-

responsibility, democracy, equality, equity and solidarity. In the tradition of their founders, co-

operative members believe in the ethical values of honesty, openness, social responsibility and

caring for others


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Co-operative banks are deeply rooted inside local areas and communities. They are involved

in local development and contribute to the sustainable development of their communities, as

their members and management board usually belong to the communities in which they

exercise their activities. By increasing banking access in areas or markets where other banks

are less present - SMEs, farmers in rural areas, middle or low income households in urban

areas - co-operative banks reduce banking exclusion and foster the economic ability of millions

of people. They play an influential role on the economic growth in the countries in which they

work in and increase the efficiency of the international financial system. Their specific form of

enterprise, relying on the above-mentioned principles of organization, has proven successful

both in developed and developing countries.

Structure of banking industry in India

Indian banks can be broadly classified into nationalized banks/public sector banks,

private banks and foreign banks

Banks

Scheduled banks Non-scheduled banks

Scheduled commercial banks Scheduled co-operative banks


HDFC Bank Ltd

Private Public Foreign Regional Urban State
Sector Sector Banks Rural Co-op Co-op
Banks Banks Banks Banks Banks

Challenges facing by Indian Banks

The main challenges facing by Indian banking are the role of financial instrumentation in

different phases of the business cycle, the emerging compulsions of the new prudential norms

and benchmarking the Indian financial system against international standards and best

practices. The need for introduction of new technology in the banking and the importance of

skill building and intellectual capital formation in the banking industry are also equal important.

COMPANY PROFILE

HDFC BANK

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 Bank currently has an nationwide network of 2,544 Branches and

9,709 ATM's in 1,399 Indian towns and cities. HDFC Bank's mission is to be a World-Class

Indian Bank.

The objective is to build sound customer franchises across distinct businesses so as to be

the preferred provider of banking services for target retail and wholesale customer


HDFC Bank Ltd

segments, and to achieve healthy growth in profitability, consistent with the bank's risk

appetite. The bank is committed to maintain the highest level of ethical standards,

professional integrity, corporate governance and regulatory compliance. HDFC Bank's

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

Focus, Product Leadership and People. 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: The Bank also has 5,471 networked ATMs

across these cities. Moreover, HDFC Bank's ATM network can be accessed by all domestic

and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American

Express Credit/Charge cardholders. 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

March 2010, the bank had a total card base (debit and credit cards) of over 14 million. The

Bank is also one of the leading players in the ―merchant acquiring‖ business with over

90,000 Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant

establishments. The Bank is well positioned as a leader in various net based B2C

opportunities including a wide range of internet banking services for Fixed Deposits, Loans,

Bill Payments, etc.

Vision

To be customer driven best managed enterprise that enjoys market leadership in providing

housing related finance.

Mission


HDFC Bank Ltd

To provide a package of attractive financial services for housing purposes through a competent

and motivated team of employees using the state of the art technology to maintain financial

stability and growth of the organization whilst contributing to the national goal of providing

decent housing to all.

Our Objectives

Customers

To provide a caring customer service anticipating solutions required by our customers and

innovatively satisfying them beyond expectations.

Shareholders

To optimize return on shareholders' funds. .

Employees

To motivate, develop, recognize and reward our employees. Industry Setting industry

benchmarks of international standard in delivering customer value throughout comprehensive

product range, customer service and all our activities

Ethics

maintaining the highest ethical standards worth of a leading corporate citizen

REGISTERED OFFICE

HDFC Bank House,

Senapati Bapat Marg,

Lower Parel,

Mumbai 400 013.


HDFC Bank Ltd

Tel: + 91 22 66521000

Fax: + 91 22 24960737

Website: www.hdfcbank.com

MANAGEMENT

Mr. C.M. Vasudev has been appointed as the Chairman of the Bank with effect from 6th July

2010. Mr. Vasudev has been a Director of the Bank since October 2006. A retired IAS officer,

Mr. Vasudev has had an illustrious career in the civil services and has held several key

positions in India and overseas, including Finance Secretary, Government of India, Executive

Director, World Bank and Government nominee on the Boards of many companies in the

financial sector.

The Managing Director, Mr. Aditya Puri, has been a professional banker for over 25 years and

before joining HDFC Bank in 1994 was heading Citibank's operations in Malaysia.

The Bank's Board of Directors is composed of eminent individuals with a wealth of experience

in public policy, administration, industry and commercial banking. Senior executives

representing HDFC are also on the Board.

Senior banking professionals with substantial experience in India and abroad head various

businesses and functions and report to the Managing Director. Given the professional expertise

of the management team and the overall focus on recruiting and retaining the best talent in the

industry, the bank believes that its people are a significant competitive strength.

BOARD OF DIRECTORS

Mr. C. M. Vasudev, Chairman

Mrs. Renu Karnad

Mr. Ashim Samanta

Dr. Pandit Palande


HDFC Bank Ltd

Mr. Partho Datta

Mr. Bobby Parikh

Mr. Anami N Roy

Mr. Keki Mistry (re-appointed on 19.01.2012)

Mr. Aditya Puri, Managing Director

Mr. Harish Engineer, Executive Director

Mr. Paresh Sukthankar, Executive Director

SENIOR MANAGEMENT TEAM

Mr. A Parthasarthy

Mr. Abhay Aima

Mr. Anil Jaggia

Mr. Anil Nath

Mr. Bhavesh Zaveri

Mr. G. Subramanian

Mr. Jimmy Tata

Mr. Kaizad Bharucha

Mr. Navin Puri

Mr. Pralay Mondal

Mr. Rahul Bhagat

Mr. Rajender SehgalMr. Sashi Jagdishan

GROWTH OF HDFC


HDFC Bank Ltd

Financial analysis is mainly done in order to judge the growth of the banks but diagnosing the

information contained in the financial statements. Financial analysis is done to identify the

financial strengths and weaknesses of banks by properly establishing relationship between the

items of balance sheet and profit and loss account. It helps in better understanding of banks

financial position and growth and performance by analyzing the financial statements with

various tools and evaluating the relationship between various elements of financial statements.

The term ―financial statement analysis‖ includes both ―analysis‖ and ―interpretation‖. The term

―analysis‖ is used to mean the generalization of data given in the financial statements by

systematic arrangements and classification of data and ―interpretation‖ means explaining the

meaning and significance of the data so simplified

Established market position

HDFC Bank has an established presence in the banking system, especially on the retail side.

Its geographical presence has improved after the purchase of CBoP; as on April 30, 2011, the

bank has 2,000 branches spread across 996 cities in India. It is the second largest private bank

in India, with reported total assets of Rs 2,218 bn as on March 31, 2010, and a share a 3.5%

and 3.6%, respectively, in system deposits and advances. Retail advances constituted 51.7%

of the bank‘s gross advances as on September 30, 2010. The bank is a market leader in

non‐mortgage retail segments such as commercial vehicles and car financing. It has access to

a large deposit base for cross‐selling its loan products; this has proven especially beneficial in

the credit cards and personal loans businesses.

Technology Banking


HDFC Bank Ltd

Innovation in technology and world-wide revolution in information and communication

technology are perceived to be the catalyst of productivity growth. The relationship between IT

and Banking is fundamentally symbiotic. It is expected to reduce costs, increase volumes and

facilitate customized products. Technology adoption is a dire necessity for the public sector

banks to complete with new generation private sector and foreign banks. It is a `compulsion'

rather than a `choice'. Retention of existing customer is the primary concern of majority of the

banks today. The major challenge for banks is to fall in line with the emerging scenario and

adopting the require technology to provide stake-of-the-art services to the customers.

Introduction of on-line, inter-connected automatic teller machines (ATM), telephone banking,

on-line bill payment and Internet banking are some of the high tech facilities. Banks have to

provide in order to survive in the competitive scenario. Technology should ultimate results in

better customer service, low cost and quick delivery.

NUMBER OF BRANCHES

The branch expansion policy seeks to achieve to broad objectives (a) narrowing down regional

imbalance and (b) providing banking facilities to rural and neglected areas. The policy mainly

emphasize on opening more offices in rural and semi-urban areas and centers which have few

or no branches without jeopardizing branch expansion in urban and metropolitan cities. The

main emphasis of branch licensing policy is on areas where population per branch is higher

than the national average.

DEPOSITS

Deposits serve as the basis for capital formation and facilitate the process of economic

development. Deposits are one of the important growth oriented functions of banking industry.


HDFC Bank Ltd

In our country the great emphasis has been placed on deposits mobilization by banks. Banks

obtain a major amount of their working capital from deposits. Since their lending and profit

earning capacities depend upon deposits. The management of banks is always engaged in

working out plans and schemes to mobilize deposits. The total deposits depend upon the no. of

factors like the monetary policy and deposit

mobilization by other commercial banks.

Growth in deposits

YEAR Deposits (Rs. In

crores)

2004-2005 36354

2005-2006 55797

2006-2007 68298

2007-2008 100769

2008-2009 142812

2009-2010 167404

2010-2011 208586

2011-2012 246706

(Source: Compiled from annual reports of the bank for the period 2004-2005 to 2009-
2010)

NETWORK


HDFC Bank Ltd

As of June 30, 2012, the Bank‘s distribution network was at 2,564 branches and 9,709 ATMs in

1,416 cities as against 2,111 branches and 5,998 ATMs in 1,111 cities as of June 30, 2011.

Growth in number of branches of HDFC

HDFC
YEAR

2004-2005 467

2005-2006 535

2006-2007 684

2007-2008 761

2008-2009 1422

2009-2010 1729

2010-2011 2109

2011-2012 2544

Strong resource profile, with large proportion of CASA deposits

HDFC Bank has a large proportion of low‐cost CASA deposits, so its cost of deposits remains

significantly below the industry average. As on March 31, 2010, CASA constituted 52% of the


HDFC Bank Ltd

bank's total deposits, the highest proportion in the banking industry and well above the industry

average of 35%. The bank's proportion of saving accounts, at 29.8% of total deposits, was

higher than the industry average of 23.3%. HDFC Bank also benefits from the synergies

between its liabilities and transaction banking businesses, especially cash management and

exchange clearing, which bolster the bank's current account base. As on March 31, 2010,

current account deposits constituted 22% of total deposits, compared with 12% for the industry.

Healthy capitalization

The bank has a net worth of Rs 214.4 bn as on March 31, 2010. In FY10, its Tier‐I capital

adequacy ratio

(CAR) increased to 13.3% from 10.6% in FY09, driven primarily by infusion of Rs 36.1 bn

through warrant conversion by Housing Development Finance Corporation Ltd during FY10.

The bank‘s CAR stood at ~17% under Basel‐II norms, as on March 31, 2010. The CAR

provides strong coverage for asset side risks; the bank had a net worth‐to‐net non‐performing

assets ratio of 54 times, as on March 31, 2010.

FINANCIAL RESULTS (INDIAN GAAP) FOR THE QUARTER ENDED JUNE

30, 2012

The Board of Directors of HDFC Bank Limited approved the Bank‘s (Indian GAAP) accounts for the

quarter ended June 30, 2012, at their meeting held in Mumbai on Friday, July 13, 2012.

FINANCIAL RESULTS:

Profit & Loss Account: Quarter ended June 30, 2012


HDFC Bank Ltd

The Bank‘s total income for the quarter ended June 30, 2012, was ` 9,536.9 crores as against `

7,098.0 crores for the quarter ended June 30, 2011. Net revenues (net interest income plus

other income) were at ` 5,013.5 crores for the quarter ended June 30, 2012, an increase of

26.3% over ` 3,968.0 crores for the corresponding quarter of the previous year. Net interest

income (interest earned less interest expended) for the quarter ended June 30, 2012, grew by

22.3% to ` 3,484.1 crores. This was driven by loan growth of 21.5% and a net interest margin

for the quarter of 4.3%.

Other income (non-interest revenue) for the quarter ended June 30, 2012, was ` 1,529.5

crores, up 36.6% over that in the corresponding quarter ended June 30, 2011. The main

contributor to other income for the quarter was fees & commissions of ` 1,143.3 crores, up by

23.9% over ` 922.7 crores in the corresponding quarter ended June 30, 2011. The two other

components of other income were foreign exchange & derivatives revenue of ` 314.8 crores (`

230.1 crores for the corresponding quarter of the previous year) and profit on revaluation / sale

of investments of ` 66.5 crores (loss of ` 41.3 crores for the quarter ended June 30, 2011).

Operating expenses for the quarter ended June 30, 2012, were ` 2,432.6 crores, an increase of

25.7% over ` 1,934.6 crores during the corresponding quarter of the previous year. The core

cost-to-income ratio for the quarter was, therefore, at 49.2% as against 48.3% for the

corresponding quarter ended June 30, 2011. Provisions and contingencies were ` 487.3 crores

(including specific, general and floating provisions of ` 474.8 crores) for the quarter ended June

30, 2012, as against ` 443.7 crores for the corresponding quarter ended June 30, 2011. After

providing ` 676.2 crores for taxation, the Bank earned a net profit of ` 1,417.4 crores, an

increase of 30.6% over the quarter ended June 30, 2011.

Balance Sheet: As of June 30, 2012


HDFC Bank Ltd

Total net advances as of June 30, 2012, were ` 213,338 crores, an increase of 21.5% over

June 30, 2011. The mix of loans between the retail and wholesale segments was 52:48 as on

June 30, 2012, as against 54:46 as on March 31, 2012. Total deposits were at ` 257,531

crores, an increase of 22.0% over June 30, 2011. Savings deposits grew 18.4% to ` 76,674

crores and current deposits grew 7.4% to ` 41,682 crores. With the term deposits growth at

29.4%, the CASA ratio was at 46.0% of total deposits as at June 30, 2012.

Capital Adequacy:

The Bank‘s total Capital Adequacy Ratio (CAR) as at June 30, 2012, (computed as per Basel II

guidelines) stood at 15.5% as against the regulatory minimum of 9.0%. Tier-I CAR was 10.9%

as of June 30, 2012


HDFC Bank Ltd

ASSET QUALITY

Asset quality remained healthy and stable with gross non-performing assets as on June 30,

2012, at 1.0% of gross advances, and net non-performing assets at 0.2% of net advances

as of June 30, 2012. The Bank‘s provisioning policies for specific loan loss provisions

remained higher than regulatory requirements. The NPA coverage ratio based on specific

provisions (not including write-offs, technical or otherwise) was at 81% as on June 30, 2012.

Total restructured loans (including applications received and under process for

restructuring) were at 0.3% of gross advances as of June 30, 2012.

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-shop window for all

his/her banking requirements. 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 MasterCard 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" b u s i n e s s w i t h o v e r 5 0 , 0 0 0 P o i n t - o f - s a l e

( P O S ) t e r m i n a l s f o r d e b i t / c r e d i t cards acceptance at merchant establishments.

Treasury


HDFC Bank Ltd

Within this business, the bank has three main product areas - Foreign Exchange and

Derivatives, Local Currency Money Market & Debt Securities, and Equities. These services 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.

Awards and Achievements

2012

Dun & Bradstreet Banking Awards 2012 - Overall Best Bank

- Best Private Sector Bank

- Asset Quality - Private Sector

- Retail Banking -Private Sector

IDRBT Banking Technology Excellence Best Bank in 'IT for Operational Effectiveness'

Awards 2011-12 category

Asia Money 2012 Best Domestic Bank in India

India's Top 500 Companies -Dun & Best Bank in India

Bradstreet Corporate Awards

Finance Asia - Best Managed Company

- Best CEO - Mr. Aditya Puri

UTI Mutual Fund CNBC TV 18 Financial - Best Performing Bank - Private

Advisor Awards 2011


HDFC Bank Ltd

Asian Banker International Excellence in - Best Retail Bank in India

Retail Financial Services Awards 2012 - Best Bancassurance

- Best Risk Management

5th Loyalty Summit award Customer and Brand Loyalty

Skoch foundation 2012 SHG/JLG linkage programme

ICAI Awards 2011 Excellence in Financial Reporting

2011

Outlook Money Best Bank Award - Best Bank - Runner Up

2011

Best Commercial Vehicle - Driving Positive Change

Financier

Businessworld Best Bank award - Best Bank

BCI Continuity & Resilience - Most Effective Recovery of the Year

Award

Financial Express Best Bank - Best in Strength and Soundness

Survey 2010-11 - 2nd Best in the Private Sector

CNBC TV18's Best Bank & - Best Bank


HDFC Bank Ltd

Financial Institution Awards - Mr. Aditya Puri, Outstanding Finance Professional

Dun & Bradstreet Banking Awards Best Private Sector Bank - SME Financing

2011

ISACA 2011 award for IT Best practices in IT Governance and IT Security

Governance

IBA Productivity Excellence New Channel Adopter (Private Sector)

Awards 2011

DSCI (Data Security Council of Security in Bank

India) Excellence Awards 2011

Euromoney Awards for Best Bank in India

Excellence 2011

FINANCE ASIA Country Awards - BEST BANK

2011: India - BEST CASH MANAGEMENT BANK

- BEST TRADE FINANCE BANK

Asian Banker Strongest Bank in Asia Pacific

BloombergUTV's Financial Best Bank

Leadership Awards 2011


HDFC Bank Ltd

IBA Banking Technology Awards Winner -

2010 1) Technology Bank of the Year

2) Best Online Bank

3) Best Customer Initiative

4) Best Use of Business Intelligence

5) Best Risk Management System

Runners Up -

Best Financial Inclusion

IDC FIIA Awards 2011 Excellence in Customer Experience

MAJOR PLAYER IN INDIA

1. 2. ICICI BANK LTD

2. STATE BANK OF INDIA LTD

3. PUNJAB NATOINAL BANK LTD

4. BANK OF BARODA LTD

5. FEDERAL BANK LTD

6. AXIS BANK LTD

7. ING VYSYA BANK LTD

8. IDBI BANK LTD

9. INDUSIND BANK LTD

10. YES BANK LTD


HDFC Bank Ltd

Rates for deposit below 15 Lacs
last updated on 1st September 2012

1 3 6 9 1 2 3 5 >5
Promotion
Banks Mont Mont Month Month Year Year year Year Year
al Offer
h h s s s s s s s
9.25 (390
ICICI
5.00 7.00 7.00 7.75 8.00 9.25 9.25 9.25 8.50 Days to 5
Bank
Years)
SBI Bank 7.00 7.00 7.25 7.25 9.00 9.00 9.00 9.00 8.50
9.25 (1or 2
HDFC
5.00 7.00 7.25 7.25 9.00 9.25 9.25 9.25 8.25 yr 16 Days
Bank
to 5 Years)
Punjab 9.00 (400
National 4.50 6.75 7.50 7.50 9.00 8.75 8.75 8.75 8.50 & 1111
Bank days)
9.25 (1.5 to
Axis Bank 5.00 7.00 7.50 7.50 9.00 9.25 9.25 9.25 8.50
5 Years)
Allahabad 9.50 (1 to 2
5.00 7.30 8.00 8.00 9.50 9.50 9.00 8.75 8.5
Bank Years)
Andhra 9.25 (1 to 3
4.50 7.25 8.50 8.50 9.25 9.25 9.25 9.00 9.00
Bank Years)
Bank of 9.35 (555
5.50 7.25 8.00 8.25 9.25 9.25 9.00 9.00 9.00
India days)
Central
9.30 (555
Bank Of 5.00 7.30 8.25 8.75 9.25 9.25 9.25 9.00 8.50
days)
India
Corporati 9.50
6.50 8.00 9.00 9.00 9.25 9.25 9.25 9.25 9.00
on Bank (1Year)
Dhanlaxm 10.00 ( 3 to
7.00 7.25 8.75 8.75 9.00 9.50 9.50 9.25 9.00
i Bank 5 Years)


HDFC Bank Ltd

Federal 9.25 (1
5.00 7.00 8.50 8.50 9.25 9.00 9.00 9.00 9.00
Bank year)
Kotak
9.40(390
Mahindra 5.75 7.50 8.25 8.50 9.25 9.25 9.00 9.00 9.00
Days)
Bank
Bank of 9.15 (111
4.50 7.00 7.50 7.75 9.00 9.00 9.00 9.00 9.00
Baroda days )

Products & Services of HDFC Bank

1. Accounts & Deposits

Savings Accounts

A deposit account held at a bank or other financial institution that provides principal

security and a modest interest rate. Depending on the specific type of savings account,

the account holder may not be able to write checks from the account (without incurring

extra fees or expenses) and the account is likely to have a limited number of free

transfers/transactions. Savings account funds are considered one of the most liquid

investments outside of demand accounts and cash. In contrast to savings accounts,

checking accounts allow you to write checks and use electronic debit to access your

funds inside the account. Savings accounts are generally for money that you don't

intend to use for daily expenses

Salary Accounts

A salary bank account or a salary account as it is more commonly called, is nothing but

a regular bank account but one in which your employer will credit your monthly


HDFC Bank Ltd

salary/paycheck every month. If you have a salary account with a bank, banks usually

provide you with additional facilities like 0 balance account, credit cards, overdraft

facilities etc.

Current Accounts

Current Account is primarily meant for businessmen, firms, companies, public

enterprises etc. that have numerous daily banking transactions. Current Accounts are

cheque operated accounts meant neither for the purpose of earning interest nor for the

purpose of savings but only for convenience of business hence they are non-interest

bearing accounts. In a Current Account, a customer can deposit any amount of money

any number of times. He can also withdraw any amount as many times as he wants,

as long as he has funds to his credit. Generally, a higher minimum balance as

compared to Savings Account is required to be maintained in Current account.

As per RBI directive banks are not allowed to pay any interest on the balances

maintained in Current accounts. However, in case of death of the account holder his

legal heirs are paid interest at the rates applicable to Savings bank deposit from the

date of death till the date of settlement. Because of the large number of transactions in

the account and volatile nature of balances maintained, banks usually levy certain

service charges for operating a Current account.

Demat Account

The term "demat", in India, refers to a dematerialized account for individual Indian

citizens to trade in listed stocks or debentures in electronic form rather than paper, as


HDFC Bank Ltd

required for investors by the Securities and Exchange Board of India (SEBI). In

a demat account, shares and securities are held electronically instead of the investor

taking physical possession of certificates. A demat account is opened by the investor

while registering with an investment broker (or sub-broker). The demat account

number is quoted for all transactions to enable electronic settlements of trades to take

place. Access to the demat account requires an internet password and a transaction

password. Transfers or purchases of securities can then be initiated. Purchases and

sales of securities on the demat account are automatically made once transactions are

confirmed and completed.

Safe Deposit Locker

Rural Accounts

TRAVELLERS CHEQUES

Travellers Cheques are a safe and easy way to protect your money when you travel.

You can encase them only when you need to, and only against your signature, unlike

cash which can be stolen and misused by anybody, immediately.

CREDIT CARD

Credit Card can be used for all your requirements, be it shopping, eating out,

holidaying, fuelling up your vehicle, railway ticket reservations - just about any financial

requirement, planned.

HOME LONE

Home loans for individual to purchase or construct houses.

PERSONAL LOAN

The procedure of personal loan is simple, documentation is minimal and approval is

quick.


HDFC Bank Ltd

FOREIGN CURRENCY CASH

Foreign Currency Cash is a convenient way of meeting personal expenses along your journey,

paying for taxis / internal travel, food expenses etc.

FOREIGN CURRENCY DEMAND DRAFTS

Demand Drafts are issued in seven currencies like United States Dollars (USD), GreatBritain

Pounds (GBP), EURO, Japanese Yen (JPY), Australian Dollars (AUD), Canadiandollars (CAD)

and New Zealand Dollars (NZD).

FOREIGN CURRENCY CHEQUE DEPOSITS

We can directly deposit our foreign currency cheques in to our saving or current account.

REMITTANCES

HDFC Bank offers the remittance facilities by which we can send and receive money to

anyone. They are categorized depending on location and the urgency with which we want the

money transferred.

TRADE SERVICE

HDFC Bank have people with high level of expertise and experience in trade services to

provide services to suit specific requirements and structure solutions for business needs.

HDFC Bank has 500 branches for trade services.

MUTUAL FUNDS

Mutual funds are funds that pool the money of several investors to invest in equity or debt

markets.

INSURANCE

HDFC Bank offers a world of choice in insurance. Like children future plans, retirements plans,

standard life, etc


HDFC Bank Ltd

FINANCIAL SERVICES

WEALTH SERVICES (earlier known as Wealth Advisory Services)

This exclusive service comes to you with an array of unmatched benefits, which include:

a) Structured Process considering your risk profile, investment objectives and financial goals

.b)Recommendations from HDFC Bank's in-house research team.

c) Choice of convenient Mutual Fund execution platforms.

MUTUAL FUNDS

Invest through the Mutual Fund route to meet your varied investment objectives.

TAX PLANNING

At HDFC Bank we offer a number of advantageous tax saving investment options.

INSURANCE

Life insurance is designed to offer financial protection for you and your family during the times

of uncertainties. Choose from a range of traditional insurance and unit linked plans designed

to help you with your savings, retirement, investment and protection needs.

TRADITIONAL PLANS UNIT LINKED PLAN

HDFC SL New Money Back Plan HDFC SL Crest Plan

HDFC Term Assurance Plan HDFC SL Young Star Super II Plan

HDFC Loan Cover Term Assurance Plan HDFC SL Re growth Super II Plan

HDFC Single Premium Whole of Life Insurance Plan HDFC SL Young Star Super Premium

HDFC Savings Assurance Plan HDFC SL Re growth Maxi miser

HDFC SL Classic Assure Insurance Plan

BONDS

A secure investment avenue giving, you stable returns with tax benefits.


HDFC Bank Ltd

KNOWLEDGE CENTER

Profit from our research and make informed investment decisions.

EQUITIES & DERIVATIVES

Leverage our vast information repository and transact online.

MUDRA GOLD BAR

Buy 24 Karat gold bars made in Switzerland and certified by Assay.

MUDRA SILVER BAR

Buy 24 Karat Silver bars made in Switzerland and certified by Assay.

MUDRA SILVER BAR

Buy 24 Karat Silver bars made in Switzerland and certified by Assay.

Ways to HDFC bank

 Bank Online

 Credit Cards Online

 Email Statements

 Net Banking

 Loan Accounts Online

 Bank with your Phone

 Instant Alerts - SMS & Email

 Mobile Banking through browser

 Mobile Banking App for iPhone


HDFC Bank Ltd

 Mobile Banking App for BlackBerry

 Mobile Banking App for Android

 Mobile Banking Credit Card Information

 SMS Banking

 Phone Banking

HDFC Bank was the first Bank to launch Mobile Banking in India on 1st January, 2000.

In keeping with our philosophy of leveraging technology to provide banking Solutions, HDFC

Bank has a slew of Mobile Banking options for every segment, be it SMS based or GPRS

enabled or capitalizing on the launch of 3G services. To support our Financial Inclusion

objectives, mobile based Service allowing customers to conduct banking transactions securely

using mobile phones and a Business Correspondent network. Now Mukesh, working in Jaipur,

can open an HDFC Bank Mobile Bank Account using the most basic mobile handset. His

mobile account allows him to deposit and withdraw money as well as earn interest.

Importantly, it helps him send money home to his family in nearby Sikar. From the busy

professional in Mumbai, balancing her work and home commitments, to the migrant worker in

Rajasthan sending money to his family in the village, access to banking services through

mobile phones continues to transform lives.

 Bank in Person

 ATMs

 Branch Network

 Cash @ Shop


HDFC Bank Ltd

ORGANIZATION STRUCTURE

GENERAL BODY

BOARD OF
DIRECTORS

CHAIRMAN CUM CEO

EXECUTIVE DIRECTOR

CHIEF GENERAL
MANAGER

GENERAL MANAGER

AGM AGM

AT THE HEAD OFFICE AT THE REGIONAL
LEVEL OFFICE LEVEL

MANAGER MANAGER
ASST. MANAGER ASST. MANAGER

HDFC Bank Ltd

PERINTHALMANNA BRANCH
PERINTHALMANNA, when compared to other places in the MALAPPURAM District is

(KERALA) more developed, and has been the centre of business activities.

Malappuram (1)

Branch Name: Perinthalmanna

Address: Sree Complex Calicut Road opposite Kalyan Jwellers Malappuram Perinthalmanna-

679322 Kerala India

Tel. 9895663333

Fax. 4933220505

ATM Yes (12)

Lockers Yes


HDFC Bank Ltd

IFSC Code HDFC0000436

High Value Cut of Timing NA

MICR Cut Off Timings 11.30 am

Weekday : Monday to Friday, Timings : 10.00 am -
04.00 pm Weekend : Saturday, Timings : 10.00 am -
Branch Working & Timing 01.00 pm, Weekly Off : Sunday

Gold Bars available Yes

Accepts Payments Through Debit/Credit
Cards (Gold Bars) Yes

Silver Bars available No

Accepts Payments Through Debit/Credit
Cards (Silver Bars) No

Gold Loans available Yes

DEPARTMENT STUDY
Departments are the entities of organizations formed to organize people, reporting

relationships, and work in a way that best supports the accomplishment of the organization's

goals. Departments are usually organized by functions such as human resources, marketing,

administration, and sales. HDFC Bank has various departments which are classified on the

basis of the functions what they are performing, which are listed below:


HDFC Bank Ltd

1) Finance Department

2) Marketing & sales Department

3) Wholesale banking

4) Foreign-exchange and NRI Department

5) Human Resource Department

6) Personal Banking Department

FINANCE DEPARTMENT


HDFC Bank Ltd

FINANCE DEPARTMENT


HDFC Bank Ltd

Finance is the life blood of business. Finance is the base of all corporate activities in

the day to day world. Management of finance is broadly concerned with the acquisition and use

of funds by a business firm.

HDFC Bank has a very efficient Finance Department headed by Manager Finance.

All the Finance Department staffs are professionals. Finance Department consist of a team of

professionals headed by Manager Finance, having sufficient industry experience in the field of

accounting, costing, taxation, company law and financial management

OBJECTIVES OF FINANCE DEPARTMENT

1. To manage & account for the financial resource of the organization, to forecast its

requirement in the future and plan accordingly and to check for deviation.

2. Report the financial performance of the organization, to comply with the government

rules and regulation.

FUNCTIONS OF FINANCE DEPARTMENT

The main functions of finance department are defined as follows.

1. Recording of day-to-day business transaction.

2. Receiving payments from customers and accounting these funds.

3. Preparations of sales budgets and revenue budgets and expenditure budgets on a

quarterly basis.

4. Preparations and, maintenance of costing records.

5. Preparations of fund flow and cash flow statement for every month.

6. Preparing and filling of quarterly and final income tax returns.

7. Preparations and implementation of cost reduction and cost control methods


HDFC Bank Ltd

8. Conduct and co-ordinate internal and stationary audits.

9. Perpetual stock verification and asset evaluation.

JOB DESCRIPTION OF PEOPLE IN FINANCE DEPARTMET

Responsibility of people in finance department

Establishing and controlling the financial systems and administrative services of the

organization, and providing financial information to Board of Directors.

MANAGER (FINANCE) Main duties

Directing the establishment of financial/accounting principles, procedures and practices in

line with legal and corporate requirements.

Ensuring accurate and timely financial reports and forecasts for the whole organization

so as to provide a clear insight into its financial condition.

Ensuring that the profits of the organization are protected through the establishment of

effective financial controls; implementing and maintaining appropriate management

accounting and reporting systems, budgetary controls and expenditure procedures

ADMINISTRATIVE OFFICER (FINANCE)

Main duties

Providing accurate and timely financial reports and forecasts and general accounting and

administrative services.

Ensuring effective costing and contribution analysis.

Implementing policies to ensure the security of funds and assets.


HDFC Bank Ltd

CASHIER

Main duties

Maintain an awareness of all promotions and advertisements.

Accurately and efficiently ring on registers and accurately maintain all cash and media at

the registers.

Communicate customer requests to top management.

INTERNAL AUDIT

The audit of all branch office departments of the bank is completing every year financial

year. In keeping with practice of improving our systems and procedures through the use of IT

as a tool, audit packages are being used so that our auditors are able to carry out the audit in a

Front End Applications package environment.

INSPECTION

The inspection of all the branches of the HDFC in India is completing within time schedule.

Implementation of inspection package in all our offices led to transparency by on-line report

writing, acceptance of compliance and closure process.

VIGILANCE

Special efforts were made to focus on disposal of vigilance cases pending for more than one

year. Besides expediting disposal of vigilance cases, emphasis is also laid on preventive

vigilance through the dissemination of information on areas susceptible to vigilance.


HDFC Bank Ltd

Marketing Department

The activities of a company associated with buying and selling a product or services. It includes

advertising, selling and delivering products to people. People who work in marketing

department of companies try to get the attention of target audiences by using slogans,

packaging design, and celebrity endorsements and general media exposure.

Aiay 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.

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 recognized 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-groundmarketing 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

creative, messages, media, etc. There are earnings that can immediately be 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,

marking those more effective.


HDFC Bank Ltd

4 PS OF HDFC BANK

Product

The product itself is the first element. Products most satisfy consumer needs. The management

must, first decide the products to be produced, by knowing the needs of the consumers.

Price
The second element to affect the volume of sales is the price. The market or announced

amount of money asked from a buyer is known as basic value placed on a product.

Promotion

The product may be known to the consumers. Firms must undertake promotion w

ork-advertising, publicity, personal selling etc. which are the major activities.

Place

Physical distribution is the delivery of products at the rights time and at the right place. The

distribution mix is the combination of decisions relating to marketing channels, storage facility

inventory control, location transportation warehousing etc.

Market Segmentation

Market segmentation is an effort to increase a company‘s precision marketing. A marketsegme

nt 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


HDFC Bank Ltd

―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‖.

“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 scheme which suit their needs.

In this way it continues to maintain a trust with its clients

Wholesale Banking Department

The wholesale banking segment provides loans, non-fund facilities and transaction services to

large corporate, emerging corporate, public sector units, government bodies, financial

institutions and medium scale enterprises. Revenues of the wholesale banking segment consist


HDFC Bank Ltd

of interest earned on loans made to customers, interest / fees earned on the cash float arising

from transaction services, earnings from trade services and other non-fund facilities and also

earnings from foreign exchange and derivatives transactions on behalf of customers. The

principal expenses of the segment consist of interest expense on funds borrowed from external

sources and other internal segments, premises expenses, personnel costs, other direct

overheads and allocated expenses of delivery channels, specialist product groups, processing

units and support groups. 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

Corporate service

Corporate Banking reflects HDFC Bank's strengths in providing our corporate clients in India,

awide array of commercial, transactional and electronic banking products. We achieve thisthrou

gh innovative product development and a well-integrated approach to relationship

management. Large Corporate 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 andequipment, 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.

Foreign-exchange Department


HDFC Bank Ltd

HDFC Bank's Foreign-exchange Department has two desks, viz. the Inter Bank Desk and the

Corporate Desk. The Inter Bank Desk (IB) does cover operations of the positions generated by

the Corporate Desk. Besides, it trades on its own account. The IB desk is based at Mumbai,

India . The Corporate Desk, named Treasury Advisory Group (TAG), caters to the needs of all

the customers' needs in foreign exchange, from three centers: Mumbai, Delhi and Chennai.

The bank has a state-of-the-art Dealing Room and is an active player in the local interbank

market. The dealing room is manned by highly trained professionals, who have earned names

in dealing in volumes normally associated with very large banks. Because of its involvement in

the development of the market in the country, the bank has been taken into various important

committees of Foreign Exchange Dealers' Association of India (FEDAI) as well as of Reserve

Bank of India (RBI). The TAG, on the other hand, focuses on the development of client-specific

solutions for the customers. While the small value transactions are handled by our branches

spread over the whole of the country, the large value ones are handled directly by the TAG

from its centers at Mumbai, Delhi, Chennai and Calcutta.

Foreign Exchange department in a bank has following functions:
EXPORTS

Pre-shipment Advances

Post-shipment Advances

Export Guarantees

Advising/Confirming Letter of Credit

Facilitating project exports

Bills for collection

IMPORTS


HDFC Bank Ltd

Opening letters of credit

Advance bills

Import loans and guarantees.

EXCHANGE DEALINGS

Rate computation

Nostro/Vostro Accounts

Forward contracts

Derivatives

Exchange position and cover operations

REMITTANCES

Issue of DD, MT, TT etc.

Encashment of cheques, DD, MT, TT etc.

Issue and encashment of travelers' cheques

Sale and encashment of foreign currency notes

Non-resident deposits

STATISTICS

Submission of returns

Collection of credit information

 Services Provided

 Prompt and competitive pricing

 Economic, fundamental and technical analysis


HDFC Bank Ltd

 Research-based recommendation

 24-hour dealing capacity

 Inward and outward remittance

 Spot and forward transactions

 Interest rate swaps

 Forward rate agreements

 Interest rate options

 Currency options

Human Resource Department

The total number of employees of your Bank was 66,076 as of March 31, 2012. The Bank

continued to focus on training its employees both – on the job as well as through training

programs conducted by internal and external faculty. The Bank has consistently believed that


HDFC Bank Ltd

broader employee ownership of its equity shares has a positive impact on its performance and

employee motivation. Your Bank lists ‗people‘ as one of its stated core values. The Bank

believes in empowering its employees and constantly takes various measures to achieve this

objective.

STATUTORY DISCLOSURES

The information required under Section 217(2A) of the Companies Act, 1956 and the rules

made there under as amended, are given in an annexure and forms part of this report. In terms

of section 219(1)(iv) of the Act, the Report and Accounts are being sent to the shareholders

excluding the aforesaid annexure. Any shareholder interested in obtaining a copy of the said

annexure may write to the Company Secretary at the Registered Office of the Bank. The Bank

had 66076 employees as on March 31, 2012. 120 employees employed throughout the year

were in receipt of remuneration of more than ` 60 lack per annum and 12 employees employed

for part of the year were in receipt of remuneration of more than ` 5 lack per month. The

provisions of Section 217(1) (e) of the Act relating to conservation of energy and technology

absorption do not apply to your Bank. The Bank has, however, used information technology

extensively in its operations. The report on the Corporate Governance is annexed herewith and

forms part of this report.

Human resource is considered as the most vital asset of an organization. ESCORT has a well

defined employee power.It helps the organization to perform well in the market. Humanresourc

es department is headed by manager, HRD, who organizes the training programs

for workers and managerial staff. The manager HRD is responsible only for training anddevelo

pment. MHRD does not come under the personnel department for workers and managerial

staff.

MAIN FUNCTION OF THE DEPARTMENT


HDFC Bank Ltd

Identifying training needs

Impacting the required training

Maintaining the training records

HRD organizes training programs using internal faulty or engaging faculties from reputed

organizations. The department in consultation with concerned department heads to organize

house training programs

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.

VARIOUS TRAINING PROGRAMMES

These are the training programmers giving by PERINTHALMANNA branch

1. GENERAL TRAINING


HDFC Bank Ltd

In order to provide this type of training, one has to determine what would be the trainee‘s

growth potentials, up to what level he can grow in the organization etc. A performance

appraisal has to be done to evaluate his present performance. Training is given on the basis

of appraisal

2. NEED BASED TRAINING

Need based training will be done o the basis of determining the level of knowledge and skill

one requires for a particular job. Next is to find out how many employees have to be given

this training. On the basis of these needs training is given to the employees

3. CUSTOMER TRAINING

Customers are given training on handling of machines and other equipments in various

situations. INDUCTION TRAINING It is the training provided to the newly recruited employees

to familiarize with the activities, rules, policies of the organization. It is also done to introduce

the new employees to the other employees of the organization

4. TECHNOLOGY TRAINING

Company provides advanced training for workers to cope up with the technological changes.

Feed backis obtained from employees and the effectiveness of the training programmer is

ascertained after a period of 2-3 months

5. PERSONALITY DEVELOPMENT PROGRAMES

Personality development programmers are conducted in a regular time period for the

development of both workers and manager.

Personal Banking Department


HDFC Bank Ltd

At Peoples Bank offer a variety of Personal Banking products and services designed to meet

individual needs and goals - from checking and savings accounts to CDs and IRAs. Personal

Banking Department realizes you are busy and wants to make banking as convenient as

possible for everyone.

HDFC Bank offer other services such as

Banking should be effortless. With HDFC Bank, the efforts are rewarding. No matter what a

customer's need and occupational status, HDFC 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: -


HDFC Bank Ltd

Regular Saving Account:

An easy-to-operate savings account that allows you to issue cheques, drawDemand

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 are1977

ATM centers across the country.

Saving plus Account

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


HDFC Bank Ltd

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

B a n k i n g , M o b i l e banking free of cost. In this customer can put Zero Initial Pay-in and a

Zero Balance account

Institutional saving accounts

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.

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


An Organizational study At HDFC Bank

An Organizational study At HDFC Bank

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