“PROJECT: -Enhancing the Fixed

Deposit Penetration in Retail

Banking”

Submitted in U.P. Technical University, Lucknow for

Post Graduate Degree Course in Master in Business Administration (MBA)

Guided by:- Submitted by:-

MR.VAIBHAB KUMAR YOGESH KUMAR FOUZDAR
BRANCH MANAGER ROLL .NO. 080677081
HDFC BANK M.B.A (IIIrd sem)
SANJAY PLACE HINDUSTAN INSTITUTE
AGRA,(U.P). MANAGEMENT AND
COMPUTER STUDIES
FARAH ,MATHURA (U.P),

1
 CONTENTS

Contents

Acknowledgement

Preface 5

Declaration

Origin of the HDFC bank 7

HDFC Companies Profile 9

Key Business Segment 13

Growth and Development of the Bank 18

Functional Departments of the Bank

23

Market profile of the organization

29

Important events in the history of HDFC Bank 32

Composition of the Board 50

HDFC Bank products at a glance 51

Fixed Deposits 57

Awards and Achievements won by the HDFC Bank 80

Comparison between different banks 90

2
Analysis of survey conducted 98

Suggestions 104

Conclusion 106

Bibliography 108

ACKNOWLEDGEMENT

3
 I take great pleasure to thank and acknowledgement the

permission and allowance by Mr. VAIBHAB KUMAR BRANCH

MANAGER, HDFC BANK AGRA REGION and his help and

inspiration provided. I extend a whole hearted thanks to Mr.

VINOD KUMAR under whom I worked and learned a lot and for

enlightening me with their knowledge and experience to grow

with the corporate working.

Their guidance at every stage of the Project enabled me to

successfully complete this project which otherwise would not

have been possible without their constant encouragement and

motivation, without the support it was not possible for me to

complete the report with fullest endeavour.

I would also like to extend my thanks to my College Faculty

Members all my colleagues in the company who supported me

in carry out my operation successfully and generously and

provided me vital information/ training regarding the my project

objective.

YOGESH KUMAR

FOUZDAR

M.B.A (IIIrd SEM)

PREFACE

4
 I had undergone a practical training under HDFC BANK AGRA

REGION. It was a good exposure for me to undergo training in

such a company to get the knowledge and experience

regarding Marketing and sales.

Summer training is one of the major experiencing component of

the knowledge, gain of relevant of information with respect to

marketing and dealing with situations in a professional course

like M.B.A. where a professional person faces a problem in a

field. I was able to get familiarized with the customer

relationship and got to know how a company measures to

resolve their grievances and service them to the maximum for

future prospect and success. Field component like survey,

generation of questionnaire with respect to marketing helped

me a lot and would be a great support in future.

“It is good to have enthusiasm but it is essential to have

training. Training can be in all way of life.” Thus I would

say that this training was beneficial educative & good exposure

to me, which will certainly help in my near future. This project

was designed with respect to this company.

DECLARATION

5
I hereby declare that the project entitled “Enhancing the Fixed Deposit

Penetration in Retail Banking” submitted for the M.B.A. Degree is my

original work and the dissertation has not formed the basis for the

award previously of any degree, associate ship, fellowship or any other

similar titles.

Place: Yogesh Kumar

Fouzdar

Date: (Student’s name)

Origin of the HDFC bank

Housing Development Finance Corporation Limited, more popularly

known as HDFC Bank Ltd, was established in the year 1994, as a part

6
of the liberalization of the Indian Banking Industry by Reserve Bank of

India (RBI). It was one of the first banks to receive an 'in principle'

approval from RBI, for setting up a bank in the private sector. The bank

was incorporated with the name 'HDFC Bank Limited', with its

registered office in Mumbai. The following year, it started its

operations as a Scheduled Commercial Bank.

HDFC Bank Limited. The Group's principal activities are to provide

banking and other financial BANK. The Group operates through four

segments: Treasury, Retail Banking, Wholesale Banking and Other

Banking Business. The Treasury BANK segment consists of net interest

earnings on investments portfolio of the bank and gains or losses on

investment operations. The Retail Banking segment serves retail

customers through a branch network and other delivery channels. This

segment raises deposits from customers and makes loans and

provides advisory BANK to customers. The Wholesale Banking segment

provides loans and transaction BANK to corporate and institutional

customers. The Other Banking Operations segment provides BANK

relating to credit cards, debit cards, third party product distribution

and primary dealership business and other associated costs. The Bank

was Incorporated on 30th August 1994. A new private sector Bank promoted by housing

Development Corporation Ltd. (HDFC), a premier housing finance company. The bank

is the first of its kind to receive an in-principle approval from the RBI for establishment

of a bank in the private sector. Certificate of Commencement of Business wasreceived

7
on 10th October 1994 from RBI. The Bank transacts both traditional commercial

banking as well as investment banking. HDFC, the promoter of the bank has entered into

an

agreement with National Westminister Bank Pc. and its subsidiaries

(Nat west Group) for subscribing 20% of the banks issued capital and

providing technical assistance in relation to the banks proposed

banking business.

HDFC BANK: - COMPANY’S PROFILE

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

8
commenced operations as a Scheduled Commercial Bank in January

1995.

PROMOTER:-

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.

BUSINESS FOCUS:-

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 segments, and to achieve healthy growth in

9
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

• People

Capital Structure:-

At present, HDFC Bank boasts of an authorized capital of Rs 550 crore

(Rs5.5 billion), of this the paid-up amount is Rs 424.6 crore (Rs.4.2

billion). In terms of equity share, the HDFC Group holds 19.4%. Foreign

Institutional Investors (FIIs) have around 28% of the equity and about

17.6% is held by the ADS Depository (in respect of the bank's

American Depository Shares (ADS) Issue). The bank has about 570,000

shareholders. Its shares find a listing on the Stock Exchange, Mumbai

and National Stock Exchange, while its American Depository Shares

are listed on the New York Stock Exchange (NYSE), under the symbol

'HDB'

10
DISTRIBUTION NETWORK:-

HDFC Bank is headquartered in Mumbai. The Bank at present has an

enviable network of over 761 branches spread over 327 cities

across India. All branches are linked on an online real-time basis.

Customers in over 120 locations are also serviced through Telephone

Banking. The Bank's expansion plans take into account the need to

have a presence in all major industrial and commercial centers where

its corporate customers are located as well as the need to build a

strong retail customer base for both deposits and loan products. Being

a clearing/settlement bank to various leading stock exchanges, the

Bank has branches in the centers where the NSE/BSE has a strong and

active base member.

The Bank also has a network of about over 1977 networked ATMs

across these cities. Moreover, all domestic and international

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

Express Credit/Charge cardholders can access HDFC BANK’s ATM

network.

11
MANAGEMENT:-

Mr. Jagdish Kapoor took over as the bank's Chairman in July 2001. Prior

to this, Mr. Kapoor was a Deputy Governor of the Reserve Bank of

India.

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.

12
 KEY BUSINESS SEGMENTS

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:

1. 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

corporates 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

13
banking solutions to corporate customers, mutual funds, stock

exchange members and banks.

2. 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

14
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.

3. 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

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.

15
RATINGS GIVEN TO HDFC BANK:-

 Credit Rating

The Bank has its deposit programs rated by two rating agencies -

Credit Analysis & Research Limited (CARE) and Fitch Ratings India

Private Limited. The Bank's Fixed Deposit programme has been rated

'CARE AAA (FD)' [Triple A] by CARE, which represents instruments

considered to be "of the best quality, carrying negligible investment

risk". CARE has also rated the bank's Certificate of Deposit (CD)

programme "PR 1+" which represents "superior capacity for

repayment of short term promissory obligations". Fitch Ratings India

Pvt. Ltd. (100% subsidiary of Fitch Inc.) has assigned the "tAAA (ind )"

rating to the Bank's deposit programme, with the outlook on the rating

as "stable". This rating indicates "highest credit quality" where

"protection factors are very high".

The Bank also has its long term unsecured, subordinated (Tier II)

Bonds rated by CARE and Fitch Ratings India Private Limited and its

Tier I perpetual Bonds and Upper Tier II Bonds rated by CARE and

CRISIL Ltd. CARE has assigned the rating of "CARE AAA" for the

subordinated Tier II Bonds while Fitch Ratings India Pvt. Ltd. has

assigned the rating "AAA (ind)" with the outlook on the rating as

"stable". CARE has also assigned "CARE AAA [Triple A]" for the Banks

16
Perpetual bond and Upper Tier II bond issues. CRISIL has assigned the

rating "AAA / Stable" for the Bank's Perpetual Debt programme and

Upper Tier II Bond issue. In each of the cases referred to above, the

ratings awarded were the highest assigned by the rating agency for

those instruments.

 Corporate Governance Rating

The bank was one of the first four companies, which subjected itself to

a Corporate Governance and Value Creation (GVC) rating by the rating

agency, The Credit Rating Information Services of India Limited

(CRISIL). The rating provides an independent assessment of an entity's

current performance and an expectation on its "balanced value

creation and corporate governance practices" in future. The bank has

been assigned a 'CRISIL GVC Level 1' rating which indicates that the

bank's capability with respect to wealth creation for all its stakeholders

while adopting sound corporate governance practices is the highest.

Growth and Development of the Organization

1994.

17
On 16.1.1995, 90,79,930 No. of equity shares were allotted to

Jarrington Pte. Ltd. Another 400,00,000 equity shares were allotted on

private placement basis to Natwest Group on 9.5.1995. 500,00,000

shares were allotted to the public on 9.5.95 The Bank opened its first

branch in Ramon House at Churchgate, Mumbai on January 16th.

The Bank has created an efficient operating system using well tested

state-of-the-art software.

1995

70 No. of equity shares issued to subscribers to the Memorandum

&Articles of Association on 30th August 1994. On the same date

500,00,000 equity shares were allotted to HDFC promoters.

509,20,000 shares were allotted to HDFC Employees Welfare Trust and

HDFC Bank Employees Welfare Trust on 22nd December,

1996

HDFC Bank has entered the banking consortia of over 50 corporates,

including some leading multinational companies, flagship companies of

local business houses and strong public sector companies.

HDFC Bank has set up a state-of-the-art dealing room to handle all

transactions possible in Indian financial markets.

18
The Certificates of Deposits were awarded a PP1+ rating which is the

highest rating for short term instruments indicating superior capacity

for repayment.

2001

- The Bank has opened its first branch in Aurangabad. HDFC Standard

Life Insurance has entered into a memorandum of understanding with

the Chennai-based Indian Bank. The Bank has launched the

international Maestro debit card inassociation with Master Card. HDFC

Bank will launch its credit card in June through link-ups with

MasterCard and Visa.LTtrade.com has entered into a strategic tie-up

with HDFC Bank to provide Net banking BANK to online investors.

Standard Chartered Bank, HDFC Bank and Bharat Petroleum

Corporation have joined the eCash Forum which has been set up by

the Smart Card Forum of India. HDFC Bank has launched a new

campaign for its eage savings account. HDFC Bank entered into a

strategic tie-up with Tally Solutions Pvt. Ltd. to offer online real time

accounting BANK to small and Medium enterprises.The Bank has

opened four ATMs outlets in Bangalore at Coles Road, RT Nagar, Rajaji

Nagar and Jaya Nagar on March 26. HDFC Standard Life Insurance has

launched a `Development Insurance Plan' a low cost life insurance

19
product developed specifically to meet the needs of economically

weaker sections. Two Directors, Mr. S.S. Thakur and Mr. Amit Judge,

have resigned from the board of the bank effective from March 30.

HDFC Bank files with US regulators to list more than 11 million

American Depositary Shares on the New York Stock Exchange.

Today HDFC Bank has 1,412 branches and over 3,295 ATMs, in 528

cities in India, and all branches of the bank are linked on an online

real-time basis. [2]

As of September 30, 2008 the bank had

total assets of INR 1006.82 billion.[3] For the fiscal year 2008-09, the

bank has reported net profit of Rs.2,244.9 crore, up 41% from the

previous fiscal. Total annual earnings of the bank increased by 58%

reaching at Rs.19,622.8 crore in 2008-09.

Present Status of the Organization:-

March 2007 March 2008 March 2009

Citied 228 316 452

Branches 535 684 1412

ATMs 1323 1605 3275

20
Housing Development Finance Corporation Limited, more popularly

known as HDFC Bank Ltd, was established in the year 1994, as a part

of the liberalization of the Indian Banking Industry by Reserve Bank of

India (RBI). It was one of the first banks to receive an 'in principle'

approval from RBI, for setting up a bank in the private sector. The bank

was incorporated with the name 'HDFC Bank Limited', with its

registered office in Mumbai. The following year, it started its

operations as a Scheduled Commercial Bank. Today, the bank boasts

of as many as 1412 branches and over 3275 ATMs across

India. Amalgamation

In 2002, HDFC Bank witnessed its merger with Times Bank Limited (a

private sector bank promoted by Bennett, Coleman & Co. / Times

Group). With this, HDFC and Times became the first two private banks

in the New Generation Private Sector Banks to have gone through a

merger. In 2008, RBI approved the amalgamation of Centurion Bank of

Punjab with HDFC Bank. With this, the Deposits of the merged entity

became Rs. 1,22,000 crore, while the Advances were Rs. 89,000 crore

and Balance Sheet size was Rs. 1,63,000 crore.

Head Office

HDFC Bank

Ramon House, 169, Backbay Reclamation,

H T Parekh Marg, Churchgate

Mumbai - 400020

21
Phone: +91 (22) 66316000, 66636000, 66316060

Fax: +91 (22) 22048834

Website: www.hdfc.com

Functional Departments of the Bank

The functional departments of the organization consists of the HR

department, the administrative department and the executive

department. The HR department of the organization consists of the

people who employ the Persons who they think would be able to do

justice with the job handled.The administrative department of the

organization consists of the director and the manager of the

organization. They preside the organization and control all the

operations of the organization such that the organization could run in a

smooth and effective manner.The executive department of the

organization consists of the various employees Who execute the job

undertaken by them. The employees consists of the team leaders, the

Corporate financial consultants,. the telecallers, various staffs and

junior staffs who are the main structural framework of the

organization. The organization thus runs with the effective

coordination of the HR department, the administrative department and

the executive department such that the supervisors of the organization

preside over the subordinate employees to give them directions about

22
fulfilling their works most efficiently and effectively. Technical

Consultancy Department: The Technical Consultancy Department is

responsible for technical appraisal of industrial projects. The mission of

the division is aimed towards the verification of the technical viability

of industrial projects and assisting the Funds management in taking

the decisions that require technical expertise. Moreover, it is

responsible for conducting technical studies and rendering technical

consultancy BANK to certain industrial sectors for the purposes of

investigating modern technologies and productivity levels for local

manufacturing plants.

H R Department:

HDFC Human Resources department plans and direct for the employee

population as well as they are having the following functions as:-

 Hiring

 Promotions

 Reassignments

 Position classification and grading

 Salary determination

 Performance appraisal review and processing

 Personnel data entry and records maintenance

23
  Policy development

 Work permitting immigration visa program

 Workers’ compensation

Finance Department:

The Finance Manager is responsible for all aspects of the accounting

and financial administration of the HDFC, the supervision of the

implementation of the HDFC financial policies, directives and

procedures and the initiation of the financial plans within the

guidelines of HDFC The department contains several distinct sections,

each of which is responsible for a proportion of the activities taking

place within the finance department.

Marketing Consultancy Department:

The Marketing Consultancy Department plays and important role

within the Fund as it studies and analyzes marketing information in

order to build solid base for management decisions. The division also

assists projects sponsors in formulating solid marketing strategies to

improve their industries and strengthen their position in the local and

international markets.

24
Research Department:

The Research Department is having the capacity to act through four

composing units i.e., the market research unit, economic studies unit,

and statistical studies unit. It is the mission of the division to provide

support BANK for information and consultancy to the senior

management and division in the areas of economic, statistical and

marketing information and consultancy through data analysis,

processing of economic and statistical data, market research studies

and publishing related periodical reports.

Organization Structure and Organization Chart

The organization structure of the company HDFC is such that it

comprises of the departments and the employees in the hierarchical

order so that they are able to perform their functions and duties

smoothly and effectively doing their job in a manner in which it should

be done. The organization is headed by the administrative department

which coordinates and controls the executive department. The

executive department is a link from the top and the bottom comprising

of the lower level employees such that they work together to fulfill the

common objective of getting business from the persons who get in

touch with them and see to it that they are provided with the best of

the BANK which constitute giving financial advise to providing Account

25
to the customers. The lower level employees and the corporate

financial consultants work together to see to it that the database for

providing financial BANK to sufficient number of people is made .They

work together to see to it that this database is followed and worked

upon such that more and more number of people get themselves avail

the financial BANK of the organization. Team leaders who form the part

of the administrative department of the Organization make sure that

the clients that turn up for the financial BANK are dealt with most

efficiently and effectively.

The organizational structure is well planned out and it follows a simple

format which is follows:

26
Organization Chart:-

Each team lead has a team comprising only of both senior as well as

junior market research analyst who aid the team lead in the entire

market research process as it has been discussed previously. This is

the basic organizational structure followed by HDFC BANK.

27
 Market profile of the organization

HDFC Bank Limited provides various financial products and services. It

operates in three segments: Retail Banking, Wholesale Banking, and

Treasury. The Retail Banking segment provides various deposit

products, including savings accounts, current accounts, fixed deposits,

and demat accounts. It also offers auto, personal, commercial vehicle,

home, gold, and educational loans; loans against securities, property,

and rental receivables; and health care finance working capital

finance, construction equipment finance, and warehouse receipt loans,

as well as credit cards, debit cards, depository, investment advisory,

bill payments, and transactional services. In addition, this segment

sells third party financial products, such as mutual funds and

insurance, as well as distributes life and general insurance products

through its tie-ups with insurance companies and mutual fund houses.

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

transaction services to large corporate, emerging corporate, small and

medium enterprise, supply chain, public sector undertaking, central

and state government departments, and institutional customers. It

offers deposit and transaction banking products, supply chain

financing, working capital and term finance, agricultural loans, and

funded, non-funded treasury, and foreign exchange products. These

28
segments services include trade services, cash management, money

market, custodial, tax collection, and electronic banking. In addition, it

provides correspondent bank services to co-operative banks, private

banks, foreign banks, and regional rural banks; and wealth

management products for non-resident Indians. The Treasury Services

segment operates primarily in areas, such as foreign exchange, money

market, interest rate trading, and equities. As of March 31, 2009, HDFC

Bank had a network of 1,412 branches and 3,295 automated teller

machines in 528 cities in India. The company was founded in 1994 and

is based in Mumbai, India.

In today’s growing world everyone needs to diversify their business so

as to keep in touch with the rapid development. By analyzing the

growing concerns of the market, HDFC has clients varying from

investment banking sector, retail, web designing companies, etc. Due

to this rapid development HDFC Group has many teams working for

the above mentioned sectors.

HDFC Bank began operations in 1995 with a simple mission: to be a

"World-class Indian Bank". We realised 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.

29
The products and BANK of our competitors are as

follows:-

A. Customer Satisfaction Analysis:

Customer analysis involves gathering data about the customers and

their characteristics. They also conduct tailored customer satisfaction

surveys to gauze customer satisfaction.

B. Risk

These BANK are used by the competitors in order to gather external

information and research the possible effect on the competitiveness of

company.

C. Product Research BANK:

The conduction of extensive product research by this service helps the

competitors to find out the marketability of a product or service. The

research can be utilized to leverage the major decisions of a company

on the marketing of its products.

D. Advertising Research BANK:

30
Advertising research strives to gain valuable information about the

effects and reach of advertising the products in different forms of

media.

IMPORTANT EVENTS IN THE HISTORY OF HDFC BANK

1994

• The bank was incorporated on 30th august. A new private

sector bank promoted by housing development corporation

Ltd. (HDFC), a premier housing finance company. The bank is

the first of its kind to receive an in-principle approval from the

RBI for establishment of a bank in the private sector.

Certificate of commencement of business was received on

10th October 1994 from RBI.

• The bank transacted in both traditional commercial banking

as well as investment banking. HDFC, the promoter of the

bank has entered into an agreement with National

Westminster Bank ac. And its subsidiaries (Natwest Group) for

subscribing 20% of the banks issued capital and providing

technical assistance in relation to the banks proposed banking

business.

31
1995

• 70 number of equity shares issued to subscribers to the

memorandum & articles of association on 30th August 1994.

On the same date 50000000 equity shares were allotted to

HDFC promoters. 50920000 shares were allotted HDFC

Employees Welfare Trust and HDFC Bank Employees Welfare

Trust on 22nd December 1994.

• On 16.1.1995, 9079930 no. Of equity shares were allotted to

Jerrington Pte. Ltd. Another 40000000 equity shares were

allotted on private placement basis to Natwest Group on

9.5.1995. 50000000 shares were allotted to the public on

9.5.1995(all were taken up).

• The bank opened its first branch in Ramon House at Church

gate, Mumbai on january16th.

• The bank had created an efficient operating system using

well-tested state of the art software.

1996

• HDFC Bank had entered the banking consortia of over 50

corporate, including some leading multinational companies,

flagship companies of local business houses and strong public

sector companies.

32
 • HDFC Bank had set up a state of the art dealing room to

handle all transactions possible in Indian financial markets.

• The Certificate of Deposits was awarded a PP1+ rating which

in the highest rating for short term instruments indicating

superior capacity for repayment.

1997

• The bank is one of the largest which mobilizes of retail

deposits through its network of 20 branches.

• The bank had set up an ultra modern hub at Powai in Mumbai

where the bank’s central computer is housed. This hub

housed in 35000 square feet, houses data of all the branches

and facilitates inter connectivity between branches and link

up with on line system.

• HDFC Bank had also signed up as a depository participant

under the newly set up NSDL, wherein the members clearing

account settlement for dematerialized shares can be done

through the bank.

• The bank proposed to launch tele-banking for the first time in

June in Mumbai at its Chandiveli branch.

• The bank had become the first private sector to conclude as

structured interest rate option deal.

33
 • The bank had launched in Versova branch, the 11 th branch in

Mumbai.

• The bank, as part of its expansion plans in the south, had

opened another branch in Chennai.

• The bank had entered into strategic alliance with 10 overseas

banks to provide customers with a wide range of derivatives

including interest rate and foreign currency swaps.

• The bank, on October 14th introduced ATMs that converse in a

regional language.

• The bank had launched an account in all its 28 branches

across India that seeks to free depositors from minimum

balance requirement, for the first time in the country.

• The bank had introduced a new loan product for the payment

of betterment fees announced by the Bangalore Mahanagar

Palika.

• The bank was all set to launch its debit card by April 1998.

1998

• The bank tied up with the Ahmedabad Stock Exchange to act

as its clearing bank.

34
 • The bank proposed to strengthen its branch network in

Calcutta with the addition of two new branches in the first

quarter of the next fiscal.

• The bank signed an agreement with the National Stock

Exchange, which gave it a second charge over the brokers

deposit for providing loan against share facility to NSE

brokers.

• The bank had also entered into a similar understanding with

the Bombay Stock Exchange whereby the house will provide

support for recovery of money against the card for loan

against share facility.

• The bank had also entered into “Cirrus” arrangements by

which all Master card holders across the globe will be able to

transact at HDFC Bank.

• The bank also started with providing phone- banking facility in

Bangalore.

• The bank tied up with Visa International to offer its debit card.

• The bank had entered into a Memorandum of Understanding

for strategic business collaboration with Chase Manhattan

bank.

1999

35
 • The bank became the first bank in India to link up its

automated teller machine (ATM) network with the entire

major payment systems worldwide.

• The bank was the first bank in the Asia-pacific region to

connect the American Express Payment System.

• The bank expanded its ATM services to connect to American

Express Interchange based in Phoenix, Arizona, USA.

• The bank was the first to sign up with AMEX in December

1998.

• Sony India ltd. Heads joined hands with HDFC Bank to work

out an innovative car finance package under which a Sony car

audio system would be installed to a new car for no additional

upfront cash flow.

• The bank had decided to issue 13310000 equity shares of Rs.

10 each to HDFC Bank and a wholly owned subsidiary of it at

a price of Rs. 94 per share.

• The bank had tied up with BPL ltd. To offer Internet enabled

supply chain management and business-to- consumer e-

commerce services to corporates.

• Hutchinson Max Telecom and HDFC Bank had introduced the

country’s’ first ever mobile banking services in the city.

2000

36
• HDFC Bank also signed a Memorandum of Understanding with

Singapore Telecom’s e-commerce arm Sesami.com Pvt Ltd.

• The Bank later also entered into a partnership agreement

with National Computer Systems, the e-commerce unit of

Singtel.

• A new company called Sesami.com (India) has been formed

by a strategic alliance between HDFC Bank and Singapore

Telecom e-commerce company Sesami.com,to offer e-

commerce solutions for the Indian market.

• HDFC Bank had a tied up with Maxtouch for giving the facility

to the later customers in Mumbai. This is the first and only

service of this sort in the country, he said.

• HDFC Bank also launched an online electronic banking

solution called Enet which will allow corporate to access their

accounts over the net and carry out trade related transactions

and cash management functions.

• HDFC Bank entered into a tie up with Telco by which the bank

would provide preferential financing options for Tata’s range

of passenger cars including the Indica, Sumo, Safari, Estate

and Sierra.

• HDFC Bank allotted 1.98crore shares of Rs.10 each at an

issue price of Rs.94 per share to promoters and strategic

investors on March 29.

37
• HDFC Bank is also set to become the first bank in the country

to offer wireless application protocol (WAP) services to

customers.

• Sky Cell Communications Ltd, one of the two cellular service

providers in Chennai, had launched ‘Sky Banking’, for which

the company had tied up with ICICI Bank and HDFC Bank.

• The bank had tied up with financial portals, e-brokerages and

the National Stock Exchange to enable broker payments for e-

broking ventures.

• The bank had set up 100 new Electronic Data Capture (EDC)

terminals in Mumbai.

• The bank had launched its first B2C payment gateway which

allows Visa and Mastercard credit card holders to do

transaction online real time.

• CYBERITMALL.COM had joined hands with the bank to provide

Visa/Mastercard users with an online payment gateway

solution to enable them to have a secure e-shopping

experience.

• The bank plans to extend its mobile phone banking services

introduced in select metros to mobilephone broking when it

introduces its internet on-line trading in July.

• The bank and portal clickforsteel.com have signed a

Memorandum of Understanding for offering online credit and

38
 services to facilitate “post-transaction” activities through the

portal’s “allied services providers” programme.

• Indianinfoline.com signed an agreement with the bank for the

use of payment gateway to enable online financial

transactions.

• The bank, in association with the cellular services provider

“Orange”, had launched the entire range of mobile banking

services and mobile commerce services using Wireless

Application Protocol (WAP) technology.

• The bank had introduced a new scheme whereby it would

provide loans to individuals for payment self-assessment tax

on their properties in Bangalore.

• The foreign investment promotion board had cleared the

proposal of the HDFC Group to enter into a joint venture with

Singapore telecom’s e-commerce company for providing a

comprehensive range of B2B e-commerce solutions to

companies in India.

• The bank proposed to pick up an equity stake in Softcell trade

and technologies ltd., a Mumbai based Software Company.

• BPL mobile had tied up with HDFC Bank to offer Internet

banking through the mobile phone.

• The bank launched “e-instant car loans” a new scheme for

offering customers a range of net-enabled loan products.

39
• The bank launched depository services on the net.

• The bank tied up with NSE.IT, a wholly owned subsidiary of

the NSE, for providing payment gateway services for the

latter’s Internet trading operations.

• The bank had been identified as the best domestic

commercial bank for the second consecutive year by

financeasia.com, which provides a network for financial

decision makers.

• The Mumbai-based Geojit Securities ltd., had tied up with the

bank for internet trading of shares.

• Calcutta’s cellular services provider Modi Telstra, and the

HDFC Bank had entered into a collaboration to provide mobile

commerce in Calcutta.

• The bank had got the kerala based Nedungadi bank as its first

customer for its new joint venture company with the I-flex

solutions.

• The bank had had set a target of attaining a business of over

Rs 15000 crore this fiscal mainly through expansion and new

product launches, including a credit card.

• The bank, in association with Tata Cellular, had launched

mobile commerce service, for customers in Hyderabad and

Vishakhapatnam.

40
• The bank had tied up with about 25 equity brokerages for

enabling third party transfer of funds and securities through

its B2B portal-“e-net”.

• The bank had entered into an alliance with with Deloitte

Haskins and Sells, a member firm of Deloitte and Touch, to

offer banking services to its non-resident Indian customers.

• The bank had launched its 123rd outlet at DSE building at Asaf

Ali road, Delhi.

• The bank had tied up with with Rajan Raheja owned Hathway

for providing banking at home as part of net-over-cable

initiative of the later in Mumbai.

• The bank had launched its on-line bill payment facility in

alliance with the Maharashtra state electricity board has also

begun to offer bridge loans against fixed deposits of parent

HDFC Corporation the financial institution.

• The bank had tied up with portal brainvisa.com to retail

education loans to students.

• The Gujarat cellular operator Fascel, had signed up with the

bank to introduce mobile commerce for the first time in the

state.

• The bank had tied up with BPL mobile for mobile commerce

facility.

41
 • Cricketnext.com, a sports e-commerce site had tied up with

HDFC Bank to provide an on-line payment gateways and

marketing opportunities for a wide range of cricket sports

gear on its online shop batnext.

• Singapore-based Growasia.com had entered into an

understanding with HDFC Bank and credit rating agency Icra,

for picking equity in the company’s Indian subsidiary

Gasia.com.

• The HDFC Bank and Cosmos bank launched a co-branded ATM

card.

• The bank and Airtel launched their mobile banking service

through WAP in Delhi.

• The bank has launched wireless application protocol based

mobile banking in Coimbatore and Trichy.

2001

• The Bank had opened its first branch in Aurangabad.

• HDFC Standard Life Insurance had entered into a

memorandum of understanding with the Chennai based

Indian Bank.

• The Bank had launched the international Maestro debit card

in association with Master card.

42
• The Bank launched its credit card in June through link ups

with Master card and Visa.

• L Trade.com had entered into a starategic tie up with HDFC

Bank to provide net banking services to online investors.

• Standard Chartered Bank, HDFC Bank and Bharat Petroleum

Corporation had joined the e-cash Forum which has been set

up by the Smart Card Forum of India.

• HDFC Bank has launched a new campaign for its e-age

savings account.

• HDFC Bank entered into a strategic tie up with Tally solutions

Pvt. Ltd. to offer online real time accounting services to small

and medium enterprises.

• The Bank had opened four ATM outlets in Banglore at Coles

Road, RT Nagar , Rajaji Nagar and Jaya Nagar on March 26.

• HDFC Standard Life Insurance had launched a ‘Development

Insurance Plan’ a low cost life insurance product developed

specifically to meet the needs of economically weaker

sections.

• Two directors, Mr. S.S. Thakur and Mr Amit Judge, had

resigned from the board of the bank effective from March

30th.

• The bank files with US regulators to list more than 11 million

American depository shares of the NYSE.

43
2002

• The bank unveiled a new online account aggregation service

“Oneview”.

• The bank launched “Oneview” service to customers.

• The bank launched its 9th branch in Karnataka.

• The bank opened its branch in Mangalore.

• The bank unveiled silver card in Hyderabad.

• The bank opens first overseas representative office.

• Mediclaim facilities to HDFC Bank gold cardholders.

• The bank launched new products to its wealth management

programme to increase its customer base. The bank introduced

a non-interactive product, “Financial Planner”, which is available

for all its customers for an annual fee starting from Rs 10000.The

bank offered fee based advisory programme to the mass effluent

segment, which was easier offered to high net worth customers.

The wealth management programme catered to the individual

needs taking into account various factors such as customer’s

age, financial goals and risk profile, which includes equity, MFs

and debt instruments such as RBI relief bonds.

• Orange JV with the HDFC Bank.

44
2003

• The bank unveiled resident foreign currency account.

• The bank unveiled co-branded credit card with e-seva.

• EPFO JV with the bank for IRS pension distribution.

• The bank enters into agreement with HDFC to source housing

loans.

• HDFC Bank, IRCTC in tie up for online railway booking.

• The bank inked pact with ANB for remittance services.

• The bank introduced “HDFC Bank Health Plus Credit Card”.

• Escotel tied up with HDFC Bank for global debit card.

• The bank launched India’s first mobile payment solution.

• The bank’s debt programme of Rs 400 crore had received

triple A (ind) rating from CREDIT rating agency FITCH.

• HDFC Bank began selling home loans of its promoter HDFC

Corporation.

• Board approval to allot 416400 equity shares to the

employees of the bank under the Employee Stock Option

Scheme.

2004

• NMCE inked pact with HDFC Bank for warehouse receipts.

45
• The bank has entered into an alliance with Clearing

Corporation of India ltd.(CCIL).

• The bank repurchases HDFC loans worth Rs 208 crore.

• Launched Quickremit, a unique online service that enables

NRIs in the US to send money to their relatives in India from

the comfort of their homes.

• Andhra bank had entered into an alliance with HDFC Bank for

sharing its network of ATMs o march 29th

• HDFC bank and Bahraini Saudi bank had announced an

alliance to cater to service the needs of the NRIs in Bahrain.

• The bank launched a new scheme for Maruti 800 buyers,

providing 85% finance on the on-road price for the car for

seven years.

• The bank’s MD Mr. Aditya Puri has been awarded the

management man of the year by the Bombay Management

Association (BMA).

• The bank had launched an online bill payment facility for its

customers who are also subscribers to Tata Teleservices.

• The bank joined hands with NCR Corporation to offer

managed ATM services.

• IKF finance ltd. had entered into a joint lending arrangement

with HDFC Bank ltd.

46
2005

• TMB forged alliance with HDFC Bank.

• The bank inaugurated its first ATM in a hotel.

• The bank tied up with International bank of Qatar to launch

banking services in Qatar.

• The bank launched loyalty rewards programme for its debit

and credit cardholders under the name of “Insta Wonderz”.

• The bank along with Mastercard International launched credit

card targeted at a small and medium sized enterprise.

• The bank unveiled credit card for farmers.

2006

• HDFC Bank sets up two more branches in AP.

2007

• The bank signed an agreement with Tata Pipes to offer credit

facilities to farmers across the country.

• The bank appointed Mr. Pandit Palande as an additional

director of the bank at the board meeting held on April 24 th

2007.

• The bank informed that the board of directors of the bank at

its meeting held on October 12th 2007 had appointed Mr.

47
 Paresh Sukthankar & Mr Harish Engineer as executive

directors on the board of directors of the bank. The above

mentioned persons have been senior employees of the bank

since 1994 and had various positions of responsibility.

COMPOSITION OF THE BOARD

The Companies Act, 1956, the Banking Regulation Act, 1949, governs

the composition of the Board of Directors of the bank and the listing

requirements of the Indian stock exchanges where the securities

issued by the bank are listed. The board has strength of nine directors

as on march 31, 2007. All directors other than Mr. Aditya Puri are non-

executive directors. The bank has four independent directors and five

non-independent directors. The board consists of eminent persons with

considerable professional expertise and experience in banking,

finance, agriculture, small scale industries and other related fields. All

the directors have made necessary disclosures regarding committee

positions occupied by them in other companies.

48
Mr. Jagdish Kapoor, Mr. Aditya Puri, Mr. Keki Mistry, Mrs. Renu Karnad

and Mr Vineet Jain are non-independent directors on the board.

Mr. Arvind Pande, Mr. Ashim Samanta, Mr. Gautam Divan and Mr. C M

Vasudev are independent directors on the board.

Mr. Keki Mistry and Mrs. Renu Karnad represent HDFC Ltd on the board

of the bank.

The Benett & Coleman group on the board of the bank nominates Mr.

Vineet Jain.

HDFC BANK’S PRODUCTS AT A GLANCE

The various products, which are provided by HDFC BANK to be availed

by its customers, are summarized as:-

 ACCOUNTS AND DEPOSITS

 Regular Savings Account

 Savings Plus Account

 Savings Max Account

 No Frills Account

49
 Institutional Savings Account

 Salary Accounts

- Payroll Account

- Classic Account

- Regular Account

- Premium Account

- Defence Account

 Kid's Advantage Account

 Pension Saving Bank Account

 Family Savings Group

 Kisan No Frills Savings

 Kisan Club Savings

 Current Accounts

- Plus Current Account

- Trade Current Account

- Premium Current Account

- Regular Current Account

- Reimbursement Current Account

- RFC - Domestic Account

- Flexi Current Account

 Fixed Deposits

- Regular Fixed Deposit

50
 - 5 Year Tax Saving Fixed Deposit

- Super Saver Facility

- Sweep-in Facility

 Demat Account

 Safe Deposit Lockers

 LOANS

 Personal Loans

 Home Loans

 Two Wheeler Loans

 New Car Loans

 Used Car Loans

 Express Loans Plus

 Gold Loan

 Educational Loan

 Loan Against Securities

 Loan Against Property

 Loans Against Rental Receivables

 Health Care Finance

 Tractor Loans

 Commercial Vehicle Finance

51
  Working Capital Finance

 Construction Equipment Finance

 Warehouse Receipt Loans

 INVESTMENTS AND INSURANCE SERVICES

 Mutual Funds

 Insurance

 General & Health Insurance

 Bonds

 Knowledge Centre

 Equities & Derivatives

 Mudra Gold Bar

 FOREX SERVICES

 Products & Services

 Trade Services

 Forex Services Branch Locator

 RBI Guidelines

 Forex Limits

52
 CARDS

 Credit Cards

- Silver Credit Card

- Value Plus Credit Card

- Health Plus Credit Card

- Gold Credit Card

- Titanium Credit Card

- Woman's Gold Credit Card

- Platinum Plus Credit Card

- Visa Signature Credit Card

- World MasterCard Credit Card

- Corporate Credit Card

- Business Credit Card

 Debit Cards

- EasyShop International Debit Card

- EasyShop Gold Debit Card

- EasyShop International Business Debit Card

- EasyShop Woman's Advantage Debit Card

- EasyShop NRO Debit Card

53
 - Kisan Card

 Prepaid Cards

- ForexPlus Card

- GiftPlus Card

- FoodPlus Card

- MoneyPlus Card

 PAYMENT SERVICES

- NetSafe

- Merchant Services

- Prepaid Refill

- BillPay

- Visa BillPay

- InstaPay

- DirectPay

- Visa Money Transfer

- e-Monies Electronic Funds Transfer

- Excise & Service Tax Payment

- Online Payment of Direct Tax

- Religious Offerings

- Donate to Charity

54
  BANK ACCESS SERVICES

- NetBanking

- OneView

- InstaAlerts

- MobileBanking

- ATM

- PhoneBanking

- Email Statements

Fixed Deposits

HDFC Bank offers four types of Fixed Deposits. They are:

- Regular Fixed Deposit

- 5 Year Tax Saving Fixed Deposit

- Super Saver Facility

- Sweep-in Facility

By Fixed Deposit you can earn a higher income on your surplus funds

by investing those with us. We provide security, trust and competitive

rate of interest.

55
 Believe in long-term investments and wish to earn higher

interests on your savings, then it’s the time to invest your money in

our Fixed Deposit and get up to 9.50% on HDFC Bank Fixed Deposit

with an additional 0.50% for Senior Citizens. Flexibility, Security and

High Returns all bundled into one offering

NO PENALTY if you withdraw part of the FD in times of need.

Features & Benefits:-

- Potential to earn compound interest by reinvesting the principal

amount along with the interest earned during the period.

- Add to your Fixed Deposit. (Minimum add-ons of Rs. 5,000/-)

when you have surplus funds.

56
 - No penalty for premature withdrawal.

- Flexibility in altering period of deposit, maturity and payment

instructions, principal amount and rollover mode before maturity

of the rollover deposit.

- Higher rate of interest on Fixed Deposits for Senior Citizens.

Interest Rates

When you open a fixed deposit with HDFC Bank

• Your interest is calculated on a quarterly basis for deposits of 6

months and above

• For those deposits with tenure of below 6 months, your interest

is calculated at maturity as Simple Interest. The period of Fixed

Deposit is calculated in number of days.

• Interest for re-investment is calculated every quarter, and the

Principal is increased to include interest earned during the

previous quarter.

• Tax at source is deducted as per the Income Tax regulations

prevalent from time to time.

Note: Interest rates are subject to change from time to time.

Applicable interest rates will be given as on the date of receipt of

the funds by the bank. When booking FD through Net Banking

57
 please note the actual interest rate being applied on the "Confirm"

screen. This screen appears before you confirm your request for

opening a new FD.

In order to see the latest information, we request you to clear your

browsers cache to see the updated interest rates.

DOMESTIC TERM DEPOSITS

Interest **Senior
Effective
Period Amount Rate (per Citizen Rates
From
annum) (per annum)

Below Rs.15 August 6,

7 - 14 days 3.00% 3.50%
Lacs 2007

Below Rs.15 August 6,

15 - 29 days 5.50% 6.00%
Lacs 2007

Below Rs.15
30 - 45 days 6.00% 6.50% July 3, 2008
Lacs

Below Rs.15
46 - 60 days 6.00% 6.50% July 3, 2008
Lacs

Below Rs.15
61 - 90 days 6.25% 6.75% July 3, 2008
Lacs

Below Rs.15
91 - 99 days 7.00% 7.50% July 3, 2008
Lacs

100 - 101 Below Rs.15 7.75% 8.25% July 3, 2008

58
 days Lacs

102 - 180 Below Rs.15

7.00% 7.50% July 3, 2008
days Lacs

6 months 1

day - 6 Below Rs.15

8.00% 8.50% July 3, 2008
months 14 Lacs

days

6 months 15

days - 6 Below Rs.15

8.25% 8.75% July 3, 2008
months 16 Lacs

days

6 months 17

days - 9 Below Rs.15

8.00% 8.50% July 3, 2008
months 14 Lacs

days

9 months 15

days - 9 Below Rs.15

9.00% 9.50% July 3, 2008
months 16 Lacs

days

9 months 17 Below Rs.15

8.75% 9.25% July 3, 2008
days - 1 year Lacs

1 year 1 day
Below Rs.15
- 1 year 14 8.75% 9.25% July 3, 2008
Lacs
days

59
 1 year 15
Below Rs.15
days - 1 year 9.50% 10.00% July 3, 2008
Lacs
16 days

1 year 17
Below Rs.15
days - 2 8.75% 9.25% July 3, 2008
Lacs
years

2 years 1 day
Below Rs.15
- 2 years 14 9.00% 9.50% July 3, 2008
Lacs
days

2 years 15

days - 2 Below Rs.15

9.50% 10.00% July 3, 2008
years 16 Lacs

days

2 years 17
Below Rs.15
days - 3 9.00% 9.50% July 3, 2008
Lacs
years

3 years 1 day Below Rs.15

9.00% 9.50% July 3, 2008
- 5 years Lacs

5 years 1 day Below Rs.15

9.00% 9.50% July 3, 2008
- 8 years Lacs

60
 Interest rates are subject to change from time to time. The bank

will give applicable interest rates as on the date of receipt of the

funds. When booking FD through NetBanking please note the

actual interest rate being applied on the "Confirm" screen. This

screen appears before you confirm your request for opening a

new FD.

 ** Only Senior Citizens / Retired Personnel (60 years and above)

who are Resident Indians are eligible. The special rates are

applicable only for INR deposits.

 *** The FD rate applicable for a monthly interest option will be a

discounted rate over the standard FD Rate. Please contact the

nearest Branch for further information.

 ****For interest rates on Fixed Deposits for Rs. 15 Lacs and

above, please contact your nearest HDFC Bank branch.

 Effective 01st Dec'06, the interest rate applicable for premature

closure of deposits will be lower of :

• the original rate at which the deposit has been booked OR

• The base rate applicable for the tenure for which the

deposit has been in force with the Bank.

The base rate is the rate applicable to deposits of less than Rs.15

lacs.

61
Eligibility

The following can apply for a Regular Fixed Deposit

• Resident Individuals

• Hindu Undivided Families

• Sole Proprietorship Firms

• Partnership firms

• Limited companies

• Trust Accounts

• An initial deposit of Rs. 10,000/- is required to open a Fixed

Deposit.

Add-ons at a minimum of Rs.5,000/-.

Tax Deductions For Re-investment Fixed Deposits

The following will be applicable for a Regular Fixed Deposit

• TDS will be deducted when interest payable or reinvested per

customer, per branch, exceeds Rs 10,000 in a financial year.

• A consolidated Annual TDS Certificate will be mailed to you after

the end of the financial year, including details of all TDS

deductions during the year.

Applicable TDS rates are:

Resident Tax Rate Surcharge Education Cess TOTAL

62
Individuals &

HUF
Payment upto
10% ---- 3% 10.30%
10 lacs
Payment

equal to & 10% 10% 3% 11.33%

above 10 lacs

Corporate Education
Tax Rate Surcharge TOTAL
Entity Cess
Payment upto
20% --- 3% 20.60%
1 crore
Payment

equal to & 20% 10% 3% 22.66%

above 1 crore

Education
NRO Tax Rate Surcharge TOTAL
Cess
Payment upto
30% ---- 3% 30.90%
10 lacs
Payment

equal to & 30% 10% 3% 33.99%

above 10 lacs

Education
Firms Tax Rate Surcharge TOTAL
Cess
Payment less 10% ---- 3% 10.30%

63
 than 1 crore
Payment

equal to & 10% 10% 3% 11.33%

above 1 crore

Co-operative Education
Tax Rate Surcharge TOTAL
Societies & Cess

Local
10% ---- 3% 10.30%
Authority

If you are exempt from paying tax, you need to present Form 15H

when you open a Fixed Deposit and subsequently at the beginning of

the following financial year.

At the end of the financial year, the TDS will be deducted on the basis

of interest accrued on the Fixed Deposit (s) even if this interest has not

been credited.

64
In 2006, it was announced for the first time that Bank fixed deposits

booked by an Individual/HUF for 5 years & upto 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.

Features & Benefits

• Minimum Amount: Rs.100/-

• Multiples of Rs.100/-

• Maximum Amount: Rs. 1 lac (in a FY)

• Tenure - 5 years (lock in period).

• Rate of Interest - 8.50% p.a, Senior Citizen rate - 9.00%

• No Partial/Premature withdrawal allowed.

• Sweep-in not allowed.

• No OD or pledge allowed.

65
 • In the case of joint holder deposit, the deduction from income

under section 80C of the Act shall be available only to the first

holder of the deposit.

Note: Interest rates are subject to change from time to time.

Applicable interest rates will be announced as on the date of receipt of

the funds by the bank.

Eligibility

The following can apply for a 5 Year Tax Saving Fixed Deposit

• Resident Individuals

• Hindu Undivided Families

An initial deposit of Rs. 100/- is required to open a Tax Saving Fixed

Deposit.

Interest Rates

When you open a Fixed deposit with HDFC Bank

• Your interest is calculated on a quarterly basis

66
 • Interest for re-investment is calculated every quarter, and the

Principal is increased to include interest earned during the

previous quarter.

• Tax at source is deducted as per the Income Tax regulations

prevalent from time to time.

Interest rate - 8.50% p.a., Senior Citizen rate - 9.00%**

Note: Interest rates are subject to change from time to time.

Applicable interest rates will be announced as on the date of receipt of

the funds by the bank.

** Only Senior Citizens / Retired Personnel (60 years and above) who

are Resident Indians are eligible.

***The FD rate applicable for a monthly interest option will be a

discounted rate over the standard FD Rate. Please contact the nearest

Branch for further information.

Tax Deductions for Re-investment Fixed Deposits

The following will be applicable for a 5 Year Tax Saving Fixed Deposit

• TDS will be deducted when interest payable or reinvested per

customer, per branch, exceeds Rs 10,000 in a financial year.

67
 • A consolidated Annual TDS Certificate will be mailed to you after

the end of the financial year, including details of all TDS

deductions during the year.

Applicable TDS rates are:

Resident

Individuals & Tax Rate Surcharge Education Cess TOTAL

HUF
Payment upto
10% ---- 3% 10.30%
10 lacs
Payment

equal to & 10% 10% 3% 11.33%

above 10 lacs

If you are exempt from paying tax, you need to present Form 15H

when you open a Fixed Deposit and subsequently at the beginning of

the following financial year.

At the end of the financial year, the TDS will be deducted on the basis

of interest accrued on the Fixed Deposit (s) even if this interest has not

been credited.

68
Enjoy a high rate of interest along with the liquidity of a Savings

Account by opting for a SuperSaver Facility on your savings account.

Avail of an overdraft facility of up to 75% of the value of your Fixed

Deposit.

Features & Benefits

• It's like two Accounts working in tandem to give you better

returns.

69
 • Choose between a Saving Account or Current Account to link to

your Fixed Deposit.

• Avail an overdraft facility to supplement your household or

business needs.

• Pay back with interest only on the drawn amount, while the

remaining Fixed Deposit continues to earn you interest.

• Flexibility in altering period of deposit, maturity and payment

instructions, principal amount and rollover mode.

• Senior citizens enjoy a higher rate of interest on their Fixed

Deposits. Eligibility

The following are eligible to open a Super Saver Account

• Resident Individual (sole or joint account)

Hindu Undivided Family

• A minimum amount of Rs 25,000/- for a minimum tenure of 6

months is required to open a Super Saver Account, in addition to

a Zero Balance Savings Account.

• Only Senior Citizens / Retired Personnel (above 60 years of age)

who are Resident Indians are eligible for the Senior Citizen rate

on the INR fixed deposit.

Note: Minors, Trusts, Associations, Clubs, and Societies, Firms,

Companies, NRIs, and Foreign Nationals cannot avail this facility.

70
As per the Finance Bill, 2006, all fees & charges mentioned in the

Tariffs, Charges or Fees Brochures will attract Service Tax @12% &

Education Cess @3% of the service tax amount effective 11th May,

2007. The same will appear as separate debits in the statements.

Interest Rates

Earn the interest of a Fixed Deposit, which varies according to the

tenure of your deposit.

For the amount withdrawn, the applicable rate is only 2% above the

fixed deposit rate for the period that the money is used.

If your Savings Account has a credit balance, you will also earn 3.50 %

paid into your account quarterly, on the funds existing in your Savings

Account.

In effect, the Super Saver Account ensures that you earn a higher

interest rate than you would with a Regular Saving Account.

71
Do you wish to avoid taking overdrafts, and still take advantage of

your Fixed Deposit? Then what you need is a Sweep-In Facility on your

savings account.

Link your Fixed Deposit to your Savings or Current Account and use it

to fall back on in case of emergencies. A deficit in your Savings or

Current Account is taken care of by using up an exact value from your

Fixed Deposit. Since deposits are broken down in units of Re 1/-, you

will lose interest only for the actual amount that has been withdrawn.

Features & Benefits

• Choose between a Savings Account and Current Account to link

to your Fixed Deposit.

• Earn higher interest on the money till it is swept-in, while the

remaining Fixed Deposit continues to earn you interest.

72
 • Only an exact amount required to make up for the deficit in the

Savings account is withdrawn from your Fixed Deposit (units of

Re. 1/-) thereby minimizing interest loss.

• Multiple deposits can be linked to the Savings account.

• Flexibility in altering the period of deposit, maturity and payment

instructions, principal amount and rollover mode.

• You can avail of both, a Super Saver Facility as well as a Sweep-

In Facility if you have linked your deposits to a Savings Facility.

• Senior citizens enjoy a higher rate of interest on their Fixed

Deposits.

• Avail an International Debit Card and a Free cheque book on

your Sweep-in Savings account.

Eligibility & Documentation

• Only Resident Individuals and Hindu United Families are eligible

for a Sweep-In Account

• Sweep-In can be also offered on Fixed Deposit linked to a

Current Account.

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Fees

Sweep-In with Savings Account

If you maintain a Fixed Deposit of Rs. 50,000/- or more, no service

charges are applicable on the Savings Account. However, if the Fixed

Deposit amount is below Rs. 50,000/-, then the following service

charges will be applicable on the savings account:

The minimum average quarterly balance maintained must be Rs.

5,000/-. If your minimum average quarterly balance is less than Rs.

5,000/- a service charge of Rs 750/- will be levied per quarter.

Sweep-In with Current Account

In case of Current Accounts, the average balance applicable to the

Current Account chosen by you, needs to be maintained irrespective of

the value of the fixed deposit. Service charges applicable would be as

per the Current Account selected by you.

If the Fixed Deposit is held for less than 15 days, your interest for the

amount transferred is forfeited.

74
As per the Finance Bill, 2007, all fees & charges mentioned in the

Tariffs, Charges or Fees Brochures will attract Service Tax @12% &

Education Cess @3% of the service tax amount effective 11th May,

2007. The same will appear as separate debits in the statements

AWARDS AND ACHEIVEMENTS WON BY THE HDFC

BANK IN BANKING SERVICES

75
Finance Asia 'Best Bank and Best Cash Management Bank'

Country Awards for

Achievement 2008
CNN-IBN 'Indian of the Year (Business)'
Nasscom IT User 'Best IT Adoption in the Banking Sector'

Award 2008
Business India 'Best Bank 2008'
Forbes Asia Fab 50 companies in Asia Pacific
Asian Banker Best Retail Bank 2008

Excellence in Retail

Financial Services
Asiamoney Best local Cash Management Bank Award voted by Corporates
Microsoft & Indian Security Strategist Award 2008

Express Group
World Trade Center For outstanding contribution to international trade services.

Award of honour
Business Today- One of India's "Most Innovative Companies"

Monitor Group

survey
Financial Express- Best Bank Award in the Private Sector category

Ernst & Young

Award
Global HR 'Employer Brand of the Year 2007 -2008' Award - First

Excellence Awards - Runner up, & many more

76
 Asia Pacific HRM

Congress:
Business Today 'Best Bank' Award

 YEAR 2007

Business Today- One of India's "Most Innovative Companies"

77
Monitor Group

survey
Financial Best Bank Award in the Private Sector category

Express-Ernst &

Young Award
Global HR 'Employer Brand of the Year 2007 -2008' Award - First

Excellence Runner up, & many more

Awards - Asia

Pacific HRM

Congress:
Business Today 'Best Bank' Award
Dun & 'Corporate Best Bank' Award

Bradstreet –

American

Express

Corporate Best

Bank Award

2007
The Bombay 'Best Corporate Social Responsibility Practice' Award

Stock Exchange

and Nasscom

Foundation's

Business for

Social

78
Responsibility

Awards 2007
Outlook Money Best Bank Award in the Private sector category.

& NDTV Profit

The Asian Best Retail Bank in India

Banker

Excellence in

Retail Financial

Services

Awards
Asian Banker Our Managing Director Aditya Puri wins the

Leadership Achievement Award for India

 YEAR 2006

Business Today Best Bank in India.

Forbes One of Asia Pacific's Best 50 companies.

Magazine
Business world Best listed Bank of India.
The Asset Best Domestic Bank.

Magazine's

Triple A Country

Awards
Asia money Best Local Cash Management Bank in Large and

79
Awards Medium segments.
Euro money "Best Bank" in India.

Awards

 YEAR 2005

Asia money Best Domestic Commercial Bank

Awards
Asia money Best Cash Management Bank - India.

Awards
The Asian Retail Banking Risk Management Award in India.

Banker

Excellence
Hong Kong- Best Bank India

based Finance

Asia magazine
Economic Times "Company of the Year" Award for Corporate

Awards Excellence.
The Asset Triple Best Domestic Bank in India Region – 2005

A Country

Awards
The Business Best Local Cash Management Bank in India US$11-

Today-KPMG 100m – 2005

Survey
The Business "Best Bank in India" for the third consecutive year in

80
Today-KPMG 2005.

Survey
Economic Times "Most Customer Responsive Company - Banking and

- Avaya Global Financial Services – 2005

Connect

Customer

Responsiveness

Awards

 YEAR 2004

Asia money Best Local Cash Management Bank in India US$11-

Awards 100m
Asia money Best Local Cash Management Bank in India

Awards >US$501m
Asia money Best Local Cash Management Bank in India 1989-

Awards 2004 (poll of polls)

Asia money Best Overall Domestic Trade Finance Services in India

Awards - 2004
Asia money Most Improved company for Best Management

Awards Practices in India – 2004

Business World One of India's Most Respected Companies - 2004
Forbes Global Best Under a Billion, 100 Best Smaller Size

Enterprises in Asia/Pacific and Europe – 2004

Asian Banker Operational Excellence in Retail Financial Services -

81
Awards 2004
The Asset Triple Best Domestic Bank in India – 2004

A Country

Awards

 YEAR 2003

Forbes Global Best Under a Billion, 200 Best Small Companies -

2003
The Asset Triple Best Domestic Bank in India -2003

A Country

Awards
Business World - One of India's Most Respected Companies

The Business

World Most

Respected

Company Awards
The Asset Best Cash Management Bank

magazine
The Asset Best Trade Finance Bank

magazine
FE-Ernst & Young Best New Private Sector Bank – 2003

Best Banks

82
Survey
Outlook Money Best Bank in the Private Sector – 2003
Business Today Best Bank in India -2003
NASSCOM & Best IT User in Banking -2003

economictimes.c

om – IT Users

Awards

There have been some other proud moments for the HDFC Bank as

well. Some of them worth mentioning are: -

London-based Euro money magazine gave us the award for "Best Bank

- India" in 1999, "Best Domestic Bank" in India in 2000, and "Best Bank

in India" in 2001 and 2002

Asia money magazine has named us "Best Commercial Bank in India

2002".
For our use of information technology we have been recognized as a

"Computerworld Honors Laureate" and awarded the 21st Century

Achievement Award in 2002 for Finance, Insurance & Real Estate

category by Computerworld, Inc., USA.

Our technology initiative has been included as a case study in their

online global archives. The Economic Times has conferred on us The

Economic Times Awards for Corporate Excellence as the Emerging

Company of the Year 2000-01.

Leading Indian business magazine Business India named us "India's

83
Best Bank" in 2000.
In the year 2000, leading financial magazine Forbes Global named us

in its list of "The 300 Best Small Companies" in the world and as one of

the "20 for 2001" best small companies in the world.

COMPARISION BETWEEN DIFFERENT BANKS

1. Axis Bank

Axis Bank offered different types of fixed deposits like

 Encash 24

 Recurring Deposit

 Tax Saver Fixed Deposit

84
Documentation

An Individual, Hindu • A valid passport or a valid driving

Undivided Family, Sole license

Proprietorship Concern • An introduction by any other bank or

an introduction by an Axis Bank

Savings Account holder for the last

six months

• A photograph
Trusts • Copy of the Trust Deed

• Copy of the registration certificate

• Copy of the Resolution of The

Trustees

• Authorizing the members concerned

to open and operate the account

• Photographs of the members

operating the account

Associations / Clubs • Bye-laws of the Association

• Copy of the Resolution by the board

authorizing the members concerned

to open and operate the account

85
 • Photographs of the members

operating the account

Partnership Firm • Partnership Deed

• Letter from partners approving the

persons concerned to open and

operate the account

• Photographs of the persons

operating the account

Interest rate offered by Axis Bank is also nearly same with interest rate

of HDFC Bank but the services offered by different bank are different.

Like the documentation of HDFC Bank is quite easier or simpler in

comparison to Axis Bank.

2. ICICI Bank

Fixed Deposit

86
 - Wide range of tenures

- Choice of investment plans

- Partial withdrawal permitted

- Safe custody of fixed deposit receipts

- Auto renewal possible

- Loan facility available

Documentation

Applicants must satisfy the following documentation

requirements:

• Identity proof

• Proof of communication address

• Self cheque (if the applicant is not visiting the branch for account

opening)

Identity Proof Proof of

(Any one of the following) communication

87
 address

(Any one of the following)

Original letter of Introduction by an

introduction from existing and satisfactory

existing bank along with customer as address

KYC cheque of the same proof

Bank
Driving License – Book Latest Electricity Bill

type or laminated &

embossed
Voter Identity Card with Certificate from the

KYC cheque for operating postal office confirming

accounts. address of applicant

Cash can be accepted for

Term deposits.
Employee Identity Card Original Letter from

Employer certifying the

residential address of

applicant. Signature of

the employee has to be

attested on the letter.

PAN Card Telephone bills from any

telephone service

providers and mobile

88
 service providers (KYC

cheque mandatory for

mobile service providers)

Defence Dependent's Consumer gas

card connection

card/book/Pipe Gas bill

(same as electricity bill)

Ex-Service Man Card Certificate from the

ward/equivalent rank

officer, maintaining

election roll, certifying

address of the applicant

Bar Council/Indian Registered and valid

Medical Association Lease/ Leave agreement

Card/Senior Citizen Card with copies of utility bills

PIO Booklet for returning Post Office Savings Pass

NRIs Book with KYC cheque

MAPIN card Statement of account or

Pass Book of a scheduled

commercial bank with

entries of at least last 3

months along with KYC

cheque
Premium Receipt from

any life insurance

89
 company

Certificate by Village

Extension Officer

(VEO)/Village Head or

equal rank officers

Domicile Certificate with

communication address

and photograph

FDs can be booked through the facility of Phone banking in HDFC

Bank, while in ICICI Bank; this facility is not available and cannot be

availed.

90
 ANALYSIS OF SURVEY CONDUCTED

1.

customers of HDFC Bank

yes
34%

yes
no

no
66%

91
2.

customers having fixed deposit in HDFC Bank

yes
13%

yes
no

no
87%

92
3.

customers having fixed deposit in other banks

yes
48% yes
no no
52%

4.

93
 customers satified with the services of their banks

don’t answer
5%

no
yes
38%
no
yes
don’t answer
57%

5.

percentage of banks offering interest rate of more than or

equal to 8.75%

don’t answer
9%
yes
44% yes
no
don’t answer
no
47%

94
6.

customers having knowledge that HDFC Bank provides loan

against deposit

don’t answer
5%
yes
34%
yes
no
don’t answer
no
61%

95
7.

customers availing facility of prewithdrawal from their banks

don’t answer
8%

yes
no
no yes
don’t answer
38% 54%

8.

96
 customers having knowledge thatthere is no penalty in case of
withdrawal of money from FD in times of needs

don’t answer
8% yes
28%
yes
no
don’t answer

no
64%

SUGGESTIONS

Some of the suggestions, which came out by doing the above research

and study, for enhancing and improving the value of savings account

in different bank branches are: -

97
 Fixed Deposits Penetration can be increased by calling our

existing customers and by telling them about the features

offered by the bank in their fixed deposit.

 Fixed Deposit Penetration can be increased by making a

proper list of the customers of the bank so, that it can help

us in identifying the people who will invest their money in

fixed deposit.

 Arranging a small session once in a month in which the

customers will be called can increase fixed Deposit

Penetration.

 All the customers should be given same priority in terms of

providing good quality and satisfaction in terms of product

and services.

 Better queuing systems should be designed at the

different bank branches counters so that customers should

not have to wait for too long in queues in the bank

branches.

98
  In the analysis, it was found that very less people were

aware about the schemes offered by us in the fixed

deposits like NO PREWITHDRAWAL CHARGES, etc. So, the

information regarding the products should be

communicated to people so that the number of ‘prospects’

for the organization may increase. For this, innovative

marketing and communication strategies need to be

implemented.

CONCLUSION

As my project deals with the Fixed Deposits of the banks, an

observation recorded is that people are not very keen on buying FDs

as the interest rates are very low in comparison to products like

mutual funds, shares, etc. and so people think that they are getting

very less returns than expected on their investments.

HDFC Bank’s tagline “WE UNDERSTAND YOUR WORLD” clearly reflects

that the bank understands the needs and demands of its customers.

Different people have different needs and HDFC Bank has always tried

to give best possible products and services to the people. That is why;

99
there are so many versatile products and services under different

categories, which the bank avails to its customers.

HDFC Bank have always strived towards excellence and giving top

priority in providing products and services with best features and

benefits for its customers. As the HDFC Bank’s four work culture

philosophies (i.e. operational excellence, customer focus, product

leadership and people), clearly shows the bank’s attitude and

commitment towards its customers. Any business organization can

only thrive and prosper, if it keeps in mind the well being of its

customers and how to provide the customers with customer satisfying

products and services in terms of quality and satisfaction. HDFC Bank

has been successful and a pioneer in achieving that, and so stands

way ahead of its competitors.

For penetrating more market in terms of FDs, strategic marketing and

communication with the people which could be the future customers of

the HDFC Bank and providing them with the knowledge of the various

services and products related to the Fixed Deposits is to be

communicated so as to increase the market in terms of service, quality

and also the number of customers. There is a great market opportunity

in the urban, as well as rural areas, which has to be worked upon. More

and more number of branches and value added services like Phone

100
banking, Net banking etc. have to be increased so as more and more

people of the society can avail and get informed of the hassle free

services of the HDFC Bank. Various innovative marketing strategies

like tele marketing, brochures, door-to-door marketing, shows and

programmers in various places need to be carried out for making more

and more people informed of the products coming under the Fixed

Deposit category, and eventually leading to increase of market size

and the number of future customers for the HDFC Bank.

BIBLIOGRAPHY

1.BOOKS & AUTHORS

· Marketing Management

2. NEWS PAPERS

· Times of India

· Financial Express

3. WEBSITES

· www.hdfcbank.com

101
www.google.com

102