1.
ADFC Pvt. Ltd.
An Associate Company of
HDFC Bank Limited
Private and Confidential

2.
TRADITIONAL PRACTICE
• In house - local processing
• High number of employees
• No specialization
• High Cost
• No set “Bench Marking” or “TAT”
Private and Confidential

3.
NEED FOR CHANGE
•Economical changes forced to think
differently
•High cost per transaction – Large Countries
•“Out Sourcing” conceptualized
Private and Confidential

4.
GENESIS
• HDFC Bank was set up in mid-90s
• One of the first Banks to set up a core banking
solution
– Customer belonged to the Bank
• All ATMs were linked on-line
• All transactions, across the branch network ,
reflected on-line
• Centralization was in the DNA of the Bank
Private and Confidential

5.
GROWTH OF THE BANK
• Bank’s growth was a combination of organic and
inorganic
• Increase in the scale of Business
– Multiple product lines
– Multiple geographies
– Movement into the interior regions of the
country
• Centralization was a “vision or strategy”
Private and Confidential

6.
STRATEGY
• An opportunity to streamline and consolidate
• Business Processes
• Workflows
• An effective model for simplifying processes
• Major impact on the cost savings
• Enhance efficiencies
Private and Confidential

7.
OBJECTIVES
• Service Centre is a Business Partner
• An enabler of business units
• Reduce costs
• Focus to achieve the revenue and business
targets
• Realize cost and process efficiencies
• Zero level compromise while delivering the best
possible service
Private and Confidential

8.
ADFC
• Set up the Company in 1998
• Started with 20 people at Mumbai
• Handled only liability account opening
• Spread into multiple geographies and products,
since then
Private and Confidential

9.
THE JOURNEY…..
• 1998
• 20 people
• Account Opening
• 2004
• 1400 people
• Liability Operations
• Direct Banking
• Wholesale Banking
• Credit Cards
• Phone Banking
• 2010
• 12000 people
• Liability Operations
• Wholesale Banking
• Retail Assets
• Credit Cards
• Phone Banking
• Collections
• Vendor Payments
Private and Confidential

10.
THE JOURNEY……
• March 2012
• 15000 Employees
• Across 750 + locations
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11.
MAJOR AREAS OF OPERATIONS
• Retail Liabilities
• Retail Assets
• Wholesale Banking
• Credit Cards
• Direct Banking
• Depository
• Phone Banking
• Customer Service
• Vendor Payments
• Soft Collections
Private and Confidential

12.
BEST PRACTICES IN OPERATIONS
• Service Level Agreements
• Detailed Process Mapping / Process Manuals
• Desk Top Procedures for easy reference
• Ongoing On the Job Training
• Ongoing Tracking and Analysis of Performance
• Corrective Actions to ensure continuous
improvement
• Productivity Benchmarking through Time and
Motion studies
• ISO certification for critical processes
Private and Confidential

13.
CSR INITIATIVE
• Pilot BPO established in Nellore (A.P.) in
September 2007 with 80 seats
• State of the art BPO set up in Tirupati in July
2008
• 564 seater across 3 floors with capability to
operate in three shifts
• Inspired and catalyzed rural upliftment
Private and Confidential

14.
CSR INITIATIVE
• 800 people strong rural venture
• 68% of the staff are females and 32% males
• Predominantly first generation graduates
• Employing rural graduates from economically
lower strata of society including fishermen,
cobblers, masons etc
Private and Confidential

15.
VALUE CREATION
• Demonstrated cost effective operations
• Combination of
• Cost to Income of businesses being
serviced
• Productivity Increase
• Improved Customer Response Times
• Improved Processing Accuracy levels
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16.
VALUE CREATION
• Enhanced our customer response times by
atleast 3 times
• Continuously enhanced the scope and value of
services
• Employment creation in rural areas or small
Districts, Villages
Private and Confidential

17.
ROAD MAP
• Take on additional Financial Services
• Diversification
• More clients
• 3rd Rural set up
Private and Confidential

18.
THANK YOU
Private and Confidential