INTRODUCTION

INTRODUCTION
HDFC Bank was incorporated in Aug. 1994 and promoted by
Housing Development Finance Corporation Limited (HDFC)
India's premier housing finance company which also enjoys an
impeccable track record in India as well as in international
markets. 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.HDFC Bank concentrates in four areas -
corporate banking, treasury management, custodial
services and retail banking. It has entered the banking
consortia of over 50 corporates for providing working capital
finance, trade services, corporate finance and merchant banking.
It is also providing sophisticated product structures, sound advice
and fine pricing mainly in areas of foreign exchange and
derivatives, money markets and debt trading and equity research
through its state-of-the-art dealing room. With its sophisticated
and customer friendly facilities & services including multi-branch
access, ATMs & cluster deposits and is well positioned to
establish a significant niche for itself in retail banking.

In Feb. 2000, Times Bank has been amalgamated with the bank.
This is an important milestone in the history of bank as well as
Indian banking sector, being the first merger of two private
sector banks. This adds significant value to bank in terms of
increased branch network, expanded geographic reach, enhanced
customer base, skilled manpower, etc. Recently HDFC BK & Life
Insurance Corporation (LIC) forms alliance for online facility for
payment of insurance premium. With this facility, LIC policy
holders can now pay their insurance premiums through HDFC
Bank's on-line payment facility. HDFC BK has become the first
private sector bank to be authorized by the Central Board of
Direct Taxes (CBDT) as well as the RBI to accept direct taxes,
commencing April 01 2001. The taxes will be accepted at
specified branches of the bank. Also it has announced a strategic
tie-up with a Bangalore-based business solutions software
developer Tally Solutions Pvt (TSPL) for developing and offering
products and services facilitating on-line accounting and banking
services to SMEs (Small and Medium Enterprises).In 2001-02 the
bank was listed on the New York Stock Exchange in the form of
ADS. Each ADS represents 3 equity shares. Consequent to the
issue, the paid up capital of the Bank has increased by Rs.37.42
crores.
COMPANY PROFILE
 COMPANY 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. The bank was incorporated in August 1994 in the name
of HDFC Bank Limited, with its registered office in Mumbai, India.
The bank 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 clear market leader in mortgages and banking
services in India. Its outstanding loan portfolio covers 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
Bank's aim is to build a sound customer franchise across distinct
businesses so as to be the preferred provider of banking services
in the niche segments that the bank operates in and to achieve
healthy growth in profitability, consistent with the bank's risk
appetite. The bank aims to ensure the highest level of
ethical standards, professional integrity and regulatory
compliance. HDFC Bank's business philosophy is based on four
core values: Operational Excellence, Customer Focus,
Product Leadership and People. The Bank signed a strategic
business collaboration agreement with Chase Manhattan Bank in
February 1999.

Capital Structure
The authorized capital of HDFC Bank is Rs.450 crores. The paid-
up capital is Rs.281.2 crores. The HDFC Group holds 24.5% of
the bank's equity while about 13.3% of the equity is held by the
depository in respect of the bank's issue of American Depository
Shares (ADS/ADR Issue). The Indian Private Equity Fund,
Mauritius (IPEF) and Indocean Financial Holdings Ltd., Mauritius
(IFHL) (both funds advised by J P Morgan Partners, formerly
Chase Capital Partners) together hold about 11.6% of the bank's
equity. Roughly 18% of the equity is held by FIIs, NRIs/OCBs
while the balance is widely held by about 300,000 shareholders.
The shares are listed on the Stock Exchange, Mumbai and the
National Stock Exchange. The bank's American Depository
Shares are listed on the New York Stock Exchange under the
symbol "HDB".

Times Bank Amalgamation

In a milestone transaction in the Indian banking industry, Times
Bank Limited (another new private sector bank promoted by
Bennett, Coleman & Co. /Times Group) was merged with HDFC
Bank Ltd., effective February 26, 2000. As per the scheme of
amalgamation approved by the shareholders of both banks and
the Reserve Bank of India, shareholders of Times Bank received
1 share of HDFC Bank for every 5.75 shares of Times Bank. The
amalgamation added significant value to HDFC Bank in terms of
increased branch network, expanded geographic reach, enhanced
customer base, skilled manpower and the opportunity to cross-
sell and leverage alternative delivery channels.

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 20 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 and
commercial banking. Senior executives representing HDFC and J
P Morgan Partners (formerly Chase Capital Partners) 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.

Technology
HDFC Bank operates in a highly automated environment in terms
of information technology and communication systems. The
entire bank's branches have connectivity which enables the bank
to offer speedy funds transfer facilities to its customers. Multi-
branch access is also provided to retail customers through the
branch network and Automated Teller Machines (ATMs).

The Bank has made substantial efforts and investments in

acquiring the best technology available internationally, to build
the infrastructure for a world class bank. In terms of software the
Corporate Banking business is supported by Flexcube, while the
Retail Banking business by Finware, both from I-flex Solutions
Ltd. (formerly Citicorp Information Technology India Ltd.). The
systems are open, scaleable and web-enabled.

The Bank has prioritized its engagement in technology and the

internet as one of its key goals and has already made significant
progress in web-enabling its core businesses. In each of its
businesses, the Bank has succeeded in leveraging its market
position, expertise and technology to create a competitive
advantage and build market share.
BUSINESS PROFILE
 BUSINESS PROFILE
HDFC Bank caters to a wide range of banking services covering
both commercial and investment banking on the wholesale side
and transactional / branch banking on the retail side.

The bank has three key business areas:-

a) Wholesale Banking Services

The Bank's target market is primarily large, blue-chip
manufacturing companies in the Indian corporate sector and to a
small extent, emerging mid-sized corporates. For these
corporates, the Bank provides a wide range of banking services,
including working capital finance, trade services, transactional
services, cash management, etc. Based on its superior product
delivery / service levels and strong customer orientation, the
Bank has made significant inroads into the banking consortia of a
number of leading Indian corporate including multinationals,
companies from the domestic business houses and prime Public
Sector companies. It is recognized as a leading provider of cash
management and transactional banking solutions to corporate
customers, mutual funds, stock exchange members and banks.

b) Retail Banking Services

The objective of the Retail Bank is to provide a full range of
financial products and banking services, giving the customer a
one-stop window for all his banking requirements. The products
are backed by world class service and delivered to the customers
through various delivery channels including the branch network,
as well as 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 Loans against shares, Auto
Loans, Personal Loans and Loans for Consumer Durables and
Two-wheelers. It is also a leading provider of Depository
Participant (DP) services for retail customers.

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 debit card allows
the user to directly debit his account at the point of purchase at a
merchant establishment, in India and overseas. The Bank
launched its credit card in association with VISA in November
2001. 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.
c) Treasury Operations
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.

Product Range

Savings, Fixed Deposits, Current and Demat Accounts Savings

Account: Apart from the usual facilities, you get a free ATM Card,
Inter branch banking, Net Banking, Bill Pay, Phone Banking,
Debit Card and Mobile Banking, among others.

Sweep-In account
A fixed deposit linked to your Savings Account. So, even if your
Savings Account runs a bit short, you can issue a cheque (or use
your ATM Card). The money is automatically swept in from your
fixed deposit into your Savings Account.
Demat Account
Conduct hassle-free transactions on your shares. You can also
access your Demat Account on the Internet.

Net Banking
Access your bank account from anywhere in the world, at
anytime, at your own convenience. You can also view your
Demat Account through Net Banking.

International Debit Card

Access your bank account from anywhere in the world, at
anytime, at your own convenience. You can also view your
Demat Account through Net Banking.

Mobile Banking
Access your account on your mobile phone screen at no airtime
cost. Use SMS technology to conduct your banking transactions
from your cell phone.

Bill Pay
Pay your telephone, electricity and mobile phone bills through
our ATMs, Internet, phone or mobile phone. No more standing in
long queues or writing cheques.
Loans for every need
Now, our loans** come to you in easy-to-pay monthly
installments, and are available with easy documentation and
quick delivery.

Personal Loans

Take a loan of up to Rs. 3 lakh for a wedding, education,

purchase of a computer or an exciting holiday.

New car loans and used car loans

Finance up to 90% of the cost of a car, new or used! And the
loans come to you with easy documentation and speedy
processing at attractive interest rates.

Loan against shares

Get an overdraft up to Rs. 10 lakh at an attractive interest rate
against physical shares, up to 50% of the market value of your
shares. In case of Demat Shares, you can get a Loan against
Shares of up to 65% of the market value of your shares, till Rs.
20 lakh.
Their employees get privileged services that

help them achieve even more

Direct Salary Credits – Their employee need not go to the

bank ,deposit their cheques and wait for it to be cleared .Their
salary is automatically credited to their accounts

Inter branch/Intercity Banking at 142 branches and over 360

ATMs

No minimum Balance to be maintained in the account to avail of

these benefits

Inter branch/Intercity Banking: -

Costumer can use any of HDFC BANK branches/ ATMs across 111
cities in India, no matter where their account is held e.g.
costumer may open their account in Pune and can operate this
\account the next time costumer travel to Bangalore or for that
matter from any other city. Also no need to open a new account
when costumer gets transferred to another city where HDFC
BANK has a branch.

ATM 24-hour Banking: - Over 675 ATMs across 111

cities enable costumer to withdraw up to Rs.15, 000 a day.
Free International Debit Card: - It’s like an ATM
Card that costumer can shop with and make payments at 25,000
outlets in India and 10 million worldwide. Costumer can also
withdraw money from over 5.6 lakh Maestro/visa/Plus/cirrus
ATMs, in 140 countries.

HDFC BANK also waives the annual fee for one additional card
per account for the first year.

Free Demand Drafts: - Customers can avail of free

demand drafts up to Rs.25, 000/- per instrument payable at any
city where HDFC BANK have branches.

Free Phone Banking: - This 24- hour’s facility enables

customer to conduct a range of banking transactions with just a
call.

Free net Banking: - Customer can now bank at the click

of a mouse, backed by the highest level 128-bit security.

Free Mobile Banking: - Customer can even conduct a

range of banking transactions over a mobile phone, using SMS
facility or a WAP activated phone.
 SAFE DEPOSIT LOCKERS

Safeguard their valuables with HDFC Bank

lockers.
Their jewellery, share certificates and important documents are
far too important for customer to risk keeping them at home. As
an HDFC Bank customer, HDFC BANK offer customer a safe and
secure place to guard their valuables from theft, fire or any
unforeseen circumstances.

Various locker Sizes:

HDFC BANK lockers are available in various convenient
sizes. Customer can choose the locker of their choice
depending on customer requirement.

Complete privacy:
The spacious design and special mobile screens of HDFC BANK
locker rooms provide complete Privacy. Besides, HDFC BANK
allows usage of only one locker per row, at a time.

Water – Proof Fire Proof and Secure:

The lockers are housed in a special area of the branch which is
secured by strong room doors and tamper-proof locks. Besides,
the walls of HDFC BANK locker rooms are specially treated to
protect them from water seepage and fire.
Convenient hours of operations:
Their can operate the lockers during the branch timings, and
even on Sundays at select braches.

SERVICE STRATEGY OF THE HDFC BANK

HDFC bank aims at full customer satisfaction its customers range
from ordinary household to high profile business houses. It has
wide range of type of account and several other payment and
deposition facilities to cater to the need of these customers for
speedy transaction to match the demand of e-commerce .It has
several model facilities like internet banking, telebanking etc. all
the cheques presented to HDFC bank are accounted within a day
where drawee branch is in the same city for out station cheques
it takes maximum three days only. It has a team of dedicated
motivated & trend professionals who listen to and sort out the
problems of customers. To avoid long queue and waiting lines it
has avoid network of reliable ATMs through out the country .It
has ATMs are joined to the main server who satellite link which
helps it to maintain data of every transaction ,after each
transaction customer is served with the bank statement the
customer may also access transfer his account via internet in
addition all these services the bank also provides customers
with debit and credit cards which allows them to make
transaction any where in the world which has visa compatibility
in this way hdfc bank epitomizes.
The merits of both orthodox and electronic banking. Thus HDFC
Bank not only tries to satisfy its customers but also make all
attempts to delight them.

HDFC Bank has three pronged services strategy:

1. People management
2. physical Environment Management
3. process Management

People Management
HDFC Bank has well qualified team of professional team of
professionals who are experts in customer relationship
management. They have achieved. Thus level of expertise
through training and motivation program taken up at regular
intervals because of this high levels of competence HDFC Bank is
often of called as Indian Foreign Bank.

Physical Environment Management

Every Branch and ATM’s of HDFC Bank is located in the posh area
of the locality it helps the bank to create a good image among
customer.

Further it helps customers access the bank facilities in leisure

time that is while marketing or on way to some important
destination.
Further all ATMs and branches are fully air conditioned with
relaxing environment which puts visitors at ease the peaceful
hesitate the tension and stores of customers.

Process Management
HDFC Bank has simplified procedures for transaction and opening
accounts it has done a way with Hussle of Gvasenter which are
mandatory in many in many banks similarly it has done a way
with many lumbers one and non essential procedures which
helps customers reduce stress and under tension.
DATA ANALYSIS
 DATA ANALYSIS
(The below statistics is of year 2007-08)

BANKWISE DISTRIBUTION OF ACOUNT

HOLDERS

Based on the response of 250 people following table has been made:
NAME OF THE BANK NO. OF ACCOUNTS %age
HDFC 70 28%
ICICI 110 44%
UTI 20 8%
IDBI 50 20%

UTI
IDBI 8% HDFC
20% 28%
HDFC
ICICI
IDBI
UTI

ICICI
44%
CONT…

RANK IN ORDER OF BANKS WITH RESPECT TO

NUMBER OF
CUSTOMERS HELD
1. ICICI
2. HDFC
3. IDBI
4. UTI

Since HDFC Bank is number two in terms of number of

account holders, and its positive image and enormous goodwill
among masses elevates, its position from nicher to runner in
retail banking sector. It can very well take on the challenge
posed by ICICI Bank and try to improve its position by
focusing on key strength areas and strategically eliminating its
weak points.
 POPULARITY OF THE TYPES OF ACOUNTS

Based on the response of 250 people following table has been made

Used by people % age

Name of Account
SAVINGS 80 32%
CURRENT 70 28%
FIXED 40 16%
SALARY 60 24%

SALARY SAVINGS
24% 32%

FIXED
16%
CURRENT
28%
CONT…

Types of accounts held by people ranked in order

1. Savings
2. Current
3 Salaries
4. Fixed

Since saving account ate the most popular among masses,

innovative ideas has to be framed to inveigle new prospects into
this venture. Possible targets could be school and college going
students, housewives and small businessmen who could easily
put their money from irregular source of income into this
account.
MOST SOUGHT AFTER ATTRIBUTES OF A BANK

People ranked different attributes as 1, 2, 3 etc.

Based on these responses mean rank has been calculated.

ATTRIBUTES MEAN RANK

ATM 2.6
FACILITIES 3.88
LOCATION 2.72
SERVICE 4.24
ATMOSPHERE 5.276
EMPLOYEE BEHAVIOUR 3.388

MEAN RANK

6
5.276
5
4.24
3.88
4
3.388

3 2.6 2.72

0
ATM FACILITIES LOCATION SERVICE ATMOSPHERE EMPLOYEE
BEHAVIOUR

The above statistics shows that major constraint which may

laggard the growth of HDFC Bank is the inadequate number of
ATMs across the country. The Bank need to improve upon this
front because in terms of customers consideration of attributes in
choosing a bank ATMs and location of it are of paramount
importance.
SWOT ANALYSIS
 SWOT ANALYSIS

Strength
The keys strength areas of HDFC Bank are their motivated
and highly competent staff who is aggressive in their
pursuit for excellence in terms of employee competence it
rivals the highly rated foreign banks.

Weakness
Though HDFC Bank has wide coverage of ATM Network
through out the country it is not considered adequate
keeping in view is wide customer base.

Opportunity
HDFC Bank has good opportunity in Rural area and offices
etc. which are still untouched by banks of such repute and
are considered virgin markets.

Threat
Other banks like ICICI, Centurion, UTI, IDBI, an
expanding at a very fast rate and are perceived as threat
to HDFC Bank.
SUGGESTIONS
 SUGGESTIONS
 Try to improve after sales services.

 To be some quality conscious.

 Try to install ATM’s at more convenient places for their

customer.

 Try to provide Complete/Actual information to the

customer.

 Customer must have all the information regarding charges

& fees.

 HDFC must issue at par cheques to their customers.

MAKE STRONG PUBLIC RELATIONS:

The bank has to provide better services to satisfy the needs and
wants of customers specially on the occasion of deepawali and
dasahara like festivals so that the customer has to satisfied with
their services of banks the bank is to provide loans, specially
housing loans to the customer at very low interest rates so that
the every middle class family is to avail loans without any
problem.

CONTINUOUS MARKET FEED BACK:

To make the good relation with the customer it is very important
to take feed back time to time to know about the problems and
difficulties which are faced by the customer.
PROVIDE RECENT INFORMATION TO THE
CUSTOMER:
The bank is able to give as many as possible information to our
customers so that the customer is able to understand which type
of information is to bi used in a particular sector.

TRY TO START ON LINE TRADING:

Due to on line trading the convince to customer is given by way
of opening and depositing their money on the basis of on line
services.

TRY TO INSTALL ATM’s AT MORE

CONVENIENT PLACES:
financial year is also increase the customer has also avail their
The bank is to install ATM’s as many as possible due to
convenience of their customer specially in commercial places ,like
petrol pumps, in market ,in the hospital . So that the customer
has convience to withdraw their money without problems.

TRY TO OPEN EXTENTION COUNTER AT

VARIOUS PLACES:
The bank has to open their extension counter in various places of
their city so that the deposit of bank is also increase and the
turnover of bank during facilities which is provided by bank
cheaper rate.
BIBLIOGRAPHY
 BIBLIOGRAPHY
• www.google.com

• www.wikipedia.om

• www.scribd.com

• www.hdfc.com

• www.financialexpress.com