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INTRODUCTION HDFC Bank Limited is a major Indian financial services company based in India, incorporated in August 1994, after the Reserve Bank of India allowed establishing private sector banks. The Bank was promoted by the Housing Development Finance Corporation, a premier housing finance company set up in 1977 of India. HDFC Bank has 1,986 branches and over 5,471 ATMs, in 996 cities in India, and all branches of the bank are linked on an online real-time basis. The bank had total assets of Rs.1006.82 billion. For the fiscal year 2010-11, the bank has reported net profit of 3,926.30 crore. Total annual earnings of the bank increased by 20.37% reaching at 24,263.4 crore in 2010-11. It is one of the Big Four banks of India, along with State Bank of India, ICICI Bank and Punjab National Bank its main competitors. HDFC Bank was incorporated in 1994 by Housing Development Finance Corporation Limited (HDFC), India's largest housing finance company. It was among the first companies to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. The Bank started operations as a scheduled commercial bank in January 1995 under the RBI's liberalization policies. Times Bank Limited (owned by Bennett, Coleman & Co. / Times Group) was merged with HDFC Bank Ltd., in 2000. This was the first merger of two private banks in India. Shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank. In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total branches to more than 1,000. The amalgamated bank emerged with a base of about Rs. 1,22,000 crore and

net advances of about Rs.89,000 crore. The balance sheet size of the combined entity is more than Rs. 1,63,000 crore. HDFC Bank deals with three key business segments. Wholesale Banking Services, Retail Banking Services, Treasury. It has entered the banking consortia of over 50 corporate for providing working capital finance, trade services, corporate finance, and merchant banking. It is also providing sophisticated product structures in areas of foreign exchange and derivatives, money markets and debt trading and equity research. Wholesale banking services 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 for its to corporate customers, mutual funds, stock exchange members and banks. Retail banking services HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA and issues the MasterCard Maestro debit card as well. The Bank launched its credit card business in late 2001. By March 2009, the bank had a total card base of over 13 million. The Bank is also one of the leading players in the merchant acquiring business with over 70,000 Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant establishments. The Bank is positioned in various net based B2C opportunities including a wide range of internet banking services for Fixed Deposits, Loans, Bill Payments, etc. Treasury

Within this business, the bank has three main product areas - Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. These services are provided through the bank's Treasury team. To comply with statutory reserve requirements, the bank is required to hold 25% of its deposits in government securities. The Treasury business is responsible for managing the returns and market risk on this investment portfolio. Distribution network HDFC Bank is headquartered in Mumbai. The Bank has an nationwide network of 2000 branches spread in 996 towns and cities across India. All branches are linked on an online real-time basis. Customers in over 500 locations are also serviced through Telephone Banking. The Bank has a presence in all major industrial and commercial centres across the country. Being a clearing/settlement bank to various leading stock exchanges, the Bank has branches in the centers where the NSE/BSE have a member base. The Bank also has 5,998 networked ATMs across these towns and cities. Moreover, HDFC Bank's ATM network can be accessed by all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.


Public (BSE: 500180, NYSE: HDB) Banking and Financial services


Founded Founder(s) Headquarters Key people

August 1994 Deepak Parekh Mumbai, India Jagdish Kapoor Aditya Puri (MD) Investment Commercial Retail Private Asset Mortgages Credit Cards (Chairman)


Banking Banking Banking Banking Management

Revenue Operating income Profit Total assets Total equity Employees Website

20,266.99 crore (US$4.48 billion) 4,419.01 crore (US$976.6 million) 3,032.92 crore (US$670.28 million) US$ 39.723 billion 21,158.15 crore (US$4.68 billion) 51,888 (2010) Figure 3

What is a bank? Bank is defined as an institution for the keeping, landing and exchanging etc. of money. Economists have also defined a bank highlighting its various functions. According to Crowther, the banker business is to take the debt of other people to offer his own in exchange and thereby create money. Thus a bank is an institution that accepts deposits from the public in turn advances loans by creating credit.

It is different from other financial institutions in that they cannot create credit though they may be accepting deposits and making advances. TYPES OF BANKS: Commercial banks are those banks which perform all kinds of banking functional such as accepting deposits, advancing loan, and recreation and agency functions. They are also called joint stock banks as they are organized in the same manner as joint stock companies. They usually advance short term loans to customers some of commercial banks in India are Andhra Bank, Canara Bank, Indian Bank, PNB etc. Exchange banks are those banks, which deal in foreign exchange and specialize in financing trade. They are called foreign exchange banks. In India these exchange banks have their head offices located outside India. These banks also render other services such as collecting and supplying information about the foreign customers providing remittance facilities etc. such as chartered bank, Gridlays bank. Industrial banks are those banks, which provide medium term and long-term finance for industries for the purchase of land, machinery, etc. They underwrite the debenture and shares of industries and also subscribe to them such as industrial development bank of India, industrial finance corporation of India etc. Agricultural banks are those banks, which provide cr. To farmers for short term, medium term and long term needs. In India, commercial banks, regional rural banks and agricultural co-operative banks provide short-term loans to farmers. Such as national bank for agriculture and rural development, NABARD.

Cooperative banks are those financial institutions, which are organized on the principle of cooperation. They provide short term, medium term loans to their members. In rural area there are agriculture cooperative banks, which are also cooperative banks, which perform the function of ordinary commercial banks but give loan to their members only. They also get funds from the RBI. There is a state cooperative bank in every state of India with its branches at the district level known as the central cooperative banks. Saving banks help promote small saving and mobilize them. They have been very successful in Japan and Germany. In India post office act as saving bank. Central banks is the apex bank, in a country, which controls its monetary, and banking structure. It is owned by the govt. of the country and operates in national interest. It regulates and issues currency, performs banking and a agency services for the state, keeps cash reserves of commercial banks, keeps and manages international currency, act as the lender of the last resort, acts as the clearing house and controls of credit. The RBI is the central bank in India.


Reserve Bank of India

Scheduled Banks


Sched uled

State Co-opBanks

Commercial Ba nk

Indian Banks

Foreign Banks

Public sector Bank

Private sector


Private sector Banks

SBI & its


Nationaliz ed

Regional Rural

Figure 1

Banking system The banking system is an integral sub-system of the financial system. It represents an important channel of collecting small saving from the households and lending it to the corporate sector. The Indian banking system has the RBI as the apex body for all matters relating to the banking system. It is the central bank of India. It is the bankers to all other banks. Functions of RBI:


1. Currency issuing authority. 2. Banker to the government. 3. Banker to other banks. 4. Framing of monetary policy. 5. Exchange control. 6. Custodian to foreign exchange and gold reserves. 7. Development activities. 8. Research and development in the banking sector.

Major Banks in India

ABN-AMRO Bank Abu Dhabi Commercial Bank American Express Bank Andhra Bank Allahabad Bank Bank of Baroda

Indian Overseas Bank IndusInd Bank ING Vysya Bank Jammu & Kashmir Bank Karnataka Bank Karur Vysya Bank


Bank of India Bank of Maharashtra Bank of Punjab Bank of Rajasthan Canara Bank Central Bank of India Centurion Bank China Trust Commercial Bank Citi Bank Corporation Bank Dena Bank Deutsche Bank Development Credit Bank Dhanalakshmi Bank Federal Bank HDFC Bank HSBC ICICI Bank IDBI Bank Indian Bank

Laxmi Vilas Bank Oriental Bank of Commerce Punjab National Bank Punjab & Sind Bank South Indian Bank Standard Chartered Bank State Bank of India (SBI) State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Indore State Bank of Mysore State Bank of Saurastra State Bank of Travancore Syndicate Bank UCO Bank Union Bank of India United Bank of India United Bank Of India UTI Bank Figure 2 12


1. Non scheduled Banks: These are banks which are not included in the second schedule of the Banking Regulation Act, 196. It means they do not satisfy the conditions laid down by that schedule. They are further classified as follows:

Central Co-operative Banks & Primary Credit Societies.

Commercial Banks

2. Scheduled Banks: Scheduled Banks are banks which are included in the second schedule of the Banking Regulation Act, 1965.According to this schedule a scheduled bank. Must have paid up capital reserve of not less than Rs. 5, 00,000/Must also satisfy the RBI that its affairs are not conducted in a manner detrimental to the interest of its depositors.


Scheduled banks are sub divided as:

1. State co-operative Banks: These are co-operative owned and managed by the state.

2. Commercial banks. These are business entities whose main business is accepting deposits and loans. Their main objective is profit maximization and adding shareholder value. extending


Scheduled Banks in India (A) Scheduled Commercial Banks

Public Banks (27)

sector Private sector Banks Foreign Banks in Regional (29) Old Banks Public New Banks Private Private India (31) Bank (133)


Nationalized Bank


Sector Banks (IDBI) SBI and its

Associates Table 1 (B) Scheduled Cooperative Banks

Scheduled Urban Cooperative Banks (55)

Scheduled State Cooperative Banks (31) Table 2


BACKGROUND HDFC Bank Ltd. is major Indian financial services company based in Mumbai, incorporated in August 1994, after the Reserve Bank of India allowed establishing private sector banks. The Bank was promoted by the Housing Development Finance Corporation, a premier housing finance company (set up in 1977) of India. HDFC Bank has 1,725 branches and over 4,232 ATMs, in 779 cities in India, and all branches of the bank are linked on an online real-time basis. The Bank started operations as a scheduled commercial bank in January 1995 under the RBI's liberalization policies. Times Bank Limited (owned by Bennett, Coleman & Co. / Times Group) was merged with HDFC Bank Ltd., in 2000. This was the first merger of two private banks in India. Shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank. In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total branches to more than 1,000.


Board of Directors

The Composition of the Board of Directors of the Bank is governed by the Companies Act, 1956, the Banking Regulation Act, 1949 and the listing requirements of the Indian Stock Exchanges where the securities issued by the Bank are listed. The Board has strength of ten (10) Directors as on March 31, 2011.

All Directors other than Mr. Aditya Puri, Mr. Harish Engineer and Mr. Paresh Sukthankar are non-executive directors. The Bank has six independent directors and four nonindependent directors. The Board consists of eminent persons with considerable professional expertise and experience in banking, finance, agriculture, small scale industries and other related fields.

None of the Directors on the Board is a member of more than ten (10) Committees and Chairman of more than five (5) Committees across all the companies in which he/she is a Director. All the Directors have made necessary disclosures regarding Committee positions occupied by them in other companies. Mrs. Renu Karnad, Mr. Aditya Puri, Mr. Harish Engineer and Mr. Paresh Sukthankar are non-independent Directors on the Board. Mr. C. M. Vasudev, Mr. Ashim Samanta, Dr. Pandit Palande, Mr. Partho Datta, Mr. Bobby Parikh and Mr. A. N. Roy are independent directors on the Board.


Mrs. Renu Karnad represents HDFC Limited on the Board of the Bank. The Bank has not entered into any materially significant transactions during the year, which could have a potential conflict of interest between the Bank and its promoters, directors, management and/or their relatives, etc. other than the transactions entered into in the normal course of business. The members of the Senior Management team have made disclosures to the Board confirming that there are no material, financial and/or commercial transactions between them and the Bank which could have potential conflict of interest with the Bank at large.

None of the directors are related to each other. Table 3



The Bank of present has an enviable network of over 241 branches spread over 129 cities all across the country. All branches are linked on an online real time basis. Customers in 39 locations are also serviced through Telephone Banking. The Banks 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. 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 member base. The Bank also has a network of almost over 775 networked ATMs across these cities. Moreover, HDFC Banks ATM network can be accessed by all domestic and international Visa/Master Card, Visa Electron/Maestro,


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 banks equity while about 13.3% of the equity is held by the depository in respect often banks 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 JP Morgan Partners, formerly Chase Capital Partners) together hold about 11.6% of the banks 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 The Stock Exchange, Mumbai and the National Stock Exchange. The Banks American Depository Shares are listed on the New York Stock Exchange under the symbol HDB. 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


HDFC Bank is a young and dynamic bank, with a youthful and enthusiastic team determined to accomplish the vision of becoming a world-class Indian bank benchmarking ourselves against international standards and best practices in terms of product offerings, technology, service levels, risk management and build sound customer franchises across distinct businesses so as to be a preferred provider of banking services for target retail and wholesale customer segments and to achieve a healthy growth in profitability, consistent with the Banks risk appetite.

Business strategy emphasizes the followings:


Increase our market share in Indias expanding banking and financial services industry by following a disciplined growth strategy and delivering high quality customer service;

Leverage our technology platform and open, scaleable systems to deliver more products to more customers and to control operating cost;

Maintain our current high standards for asset quality through discipline credit risk management

Develop innovative products and services that attract our targeted customers and address inefficiencies in the Indian financial sector;

Continue to develop products and services that reduce our cost of funds; and Focus on high earnings growth with low volatility.



HDFC Bank began operations in 1995 with a simple mission: to be a World Class Indian Bank.

We realized that only a single minded focus on product quality and services excellence would help us get there. Today, we are proud to say that we are well on our way towards that goal.

It is extremely gratifying that our efforts towards providing customer convenience have been recognized both nationally and internationally. In the year 2000, leading financial magazine Forbes Global named us it list of The 300 Best Small Companies in the world and as one of the 20 for 2001 best small companies in the world. There have been some other proud moments as well.

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. Hong Kong based Finance Asia Magazine rated us Best Domestic Commercial Bank in India in 1999, 2000 and 2001 respectively and Best Local Bank in India in 2002. Asia money magazine has named us Best Commercial Bank in India 2002. 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 magazines Business India named us Indias Best Bank in 2000. Another leading Indian business magazine Business Today in a survey rated us Best Private Sector Bank in India in 1999. For our use of information technology we have been recognized as a Computer world 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 achieves.

NASSCOM and economic has named us the Best IT User in Banking at the IT Users Awards 2003. We are aware that all these awards are mere milestones in the continuing, never ending journey of providing excellent service tour customers. We are confident, however, that with your feedback and support, we will be able to maintain and improve our services.


Savings, Fixed Deposits, Current and Demat Accounts Savings Accounts: Apart from the usual facilities, you get a free ATM Card, Interbranch banking, Net Banking, Bill pay, Phone Banking, Debit Card and Mobile Banking, among others. HDFC BANK PREFERRED


A preferential Savings Account where you are assigned a dedicated Relationship Manager, who is your one point contact. You also get privileges like fee waivers, enhanced ATM withdrawal limit, priority locker allotment, free Demat Account and lower interest rates on loans, to name a Sweep-In Account: A fixed deposit linked to your Savings Account. So, even 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.


Gives you an overdraft facility up to 75% of your Fixed Deposit. In an emergency, you can access your funds while your Fixed Deposit continues to earn high interest.








- Regular Savings Account - Savings Plus Account - Savings Max Account - Senior Citizens Account - No Frills Account - Salary Account - Kid's Advantage Account Pension Saving

- Personal Loans - Home Loans - Two Wheeler Loans - New Car Loans - Used Car Loans - Overdraft against Car - Express Loans

- Mutual Funds - Tax Planning - Insurance - Bonds - Financial Planning - Knowledge Centre - Equities & Derivatives - Mudra Gold Bar - Mudra silver Bar

Bank - Loan against Securities - Loan against Property -Loan against Rental

Account - Family Savings Account - Plus Current Account - Trade Current Account - Premium Current Account - Regular Current Account - Apex Current Account - Max Current Account - Merchant Current Account - Regular Fixed Deposit -Recurring Deposits. - Super Saver Account

Receivables -Health care finance -Tractor Loans Commercial Vehicle - Credit cards - Debit cards CARDS

Finance - Working Capital Finance

- Construction Equipment - Prepaid cards Finance


- Sweep-in Account HDFC Bank

Imperia/Classic/Preferred Banking






- Net Safe - Product & Services - Trade services Forex service - Prepaid Refill - Bill Pay Branch - Direct Pay - Visa Money Transfer E-Monies

-Net Banking -Credit card Online -One View -Insta Alert -Mobile Banking

Locator - Forex Limits

Electronic -ATM


- Forex Plus Card - RBI Guidelines

Funds Transfer

-Phone Banking

- Excise & Service Tax -Email Statements Payment


Table 4

Apart from Regular and Premium Current accounts we also have HDFC Bank Plus, a Current Account and then some more. You can transfer up to Rs. 50 lakh per month at no extra charge, between the four metros. You can also avail of cheque clearing between the four metros, get cash delivery/pickup upto Rs. 25,000/- home delivery opf Demand Drafts, at par cheques, outstation cheque clearance facility, etc.

DEMAT ACCOUNT Conduct hassle free transactions on your shares. You can also access your Demat Account on the Internet.

PHONE BANKING 24 hour automated banking services with 39 Phone Banking numbers available. ATM 24 hour banking: Apart from routine transactions, you can also pay your utility bills and transfer funds, at any of our ATMs across the country all year round. Intercity/ Interbranch Banking: Access your account from any of our 241 branches in 129 cities.


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 An ATM card you can shop with all over the country and in over 140 countries with. You can spend in any currency, and pay in Rupees.

MOBILE BANKING Access your account on your mobile phone screen at no airtime cost. Use SMS technology to conduct your banking transactions from your cellphone.

BILL PAY Pay your telephone, electricity and mobile phone bills through our ATM, Internet, Phone or mobile phone. No more standing in long queues or writing cheques.


Take a loan of up to Rs. 3 lakh for a wedding, education, purchase of a computer or an exciting holiday.



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


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 Loans against Shares of up to 65% of the market value of your shares, till Rs. 20 lakh.


SOME BRANCHES IN DELHI with their IFSC code Area Address ATM Lockers IFSC Code Area Address ATM Lockers IFSC Code Area Address ATM Lockers IFSC Code Area Address ATM Lockers IFSC Code Area Address ATM Lockers IFSC Code Area Address ATM Lockers IFSC Code Anand Vihar A38 Anand Vihar New Delhi - 110092 YES YES HDFC0001668 Ashok Vihar B - 3 / 2 Ashok Vihar Phase 2 New Delhi - 110052 YES YES HDFC0000287 Barakhamba Road GF - 1, O & H, DCM Building New Delhi - 110001 YES NA HDFC0000708 Chandni Chowk 1907 Chandni Chowk opposite Sish Ganj Gurudwara, Main Road New Delhi - 110006 YES YES HDFC0000553 Chattarpur Khasra No. 619 / 21, Chattarpur, New Delhi - 110074 YES YES HDFC0001669 Chawri Bazaar 73 - 75, 60 / 1, Chawri Bazaar New Delhi - 110006 YES YES HDFC0001070


Area Address ATM Lockers IFSC Code Area Address ATM Lockers IFSC Code Area Address ATM Lockers IFSC Code Area Address ATM Lockers IFSC Code Area Address ATM Lockers IFSC Code Area Address ATM Lockers IFSC Code

Chittranjan Park B105 Chittranjan Park New Delhi - 110019 YES YES HDFC0000934 Connaught Circus, Delhi N 47 Connaught Circus New Delhi - 110001 YES NA HDFC0001401 Connaught Place H 69 Outer Circle Connaught Place New Delhi - 110001 YES YES HDFC0000313 Defence Colony D - 23, Defence Colony New Delhi - 110024 YES YES HDFC0000134 Dwarka Aggarwal Central Plaza, Plot No. 11, Sector 5, Dwarka, DDA Market, New Delhi - 110075 YES YES HDFC0000249 Green Park H - 7, Green Park Extension New Delhi - 110016 YES YES HDFC0000586


Area Address ATM Lockers IFSC Code Area Address ATM Lockers IFSC Code Area Address ATM Lockers IFSC Code Area Address ATM Lockers IFSC Code

Kamla Nagar D 147 Kamla Nagar New Delhi - 110007 YES YES HDFC0001439 Lajpat Nagar A - 9, Ring Road Lajpat Nagar New Delhi - 110024 YES YES HDFC0000294 Lajpat Nagar 2 B 36 Near Samar Hyundai Lajpat Nagar - II New Delhi - 110024 YES YES HDFC0001557 Pahar Ganj Shop No. Ag - 1 to Ag - 8 & Ag - 20 & Ag - 21 R. G. Complex, Plot No. 2, Community Center Motia Khan Pahar Ganj New Delhi 110055 YES YES HDFC0000457 Table 5


TRUSTS HDFCs trust services provide you with the dual advantages of a secure depository and efficient administration of your securities. Its solutions help you maximize returns, meet fiduciary responsibilities, and improve operational efficiency. Knowing that its clients needs are complex and varies, it leverage its extensive expertise and experience to provide you with a customized set of benefit and investment services that work best in assisting its employee benefits program. And whats more, since HDFC takes on custodian services for all types of securities, you can protect your securities from loss, theft, damage or destruction. In addition to the benefits of a securities account, you can also take advantage of its other services such as professional investment advice as well as banking products. You will receive important information concerning changes in RBI policy and auctions in timely fashion. Based on your instructions, it will bid for your in RBI auctions, settle your purchase or sale transactions, and convert your securities from physical to dematerialized mode. All the work involved in handling securities transactions is taken care of. Incoming credits will be immediately deposited to your account and you receive regular statement of interest, redemption and payments. You can also request at a predefined interval a custody account or account statement showing clearly the accounts current holdings. Its Phone Banking facility enables you to stay informed about your account around the clock.





STRENGTHS: 1. Right strategy for the right products. 2. Superior customer service vs. competitors. 3. Great Brand Image. 4. Products have required accreditation. 5. High degree of customer satisfaction. 6. Good place to work 7. Lower response time with efficient and effective service. 8. Dedicated workforce aiming at making a long-term career in the field.

WEAKNESS: 1. Some gaps in range for certain sectors. 2. Customer service staff needs training. 3. Processes and systems, etc 4. Management cover insufficient. 5. Sectoral growth is constrained by low unemployment levels and competition for staff



1. Profit margins will be good. 2. Could extend to overseas broadly. 3. New specialist applications. 4. Could seek better customer deals. 5. Fast-track career development opportunities on an industry-wide basis. 6. An applied research center to create opportunities for developing techniques to provide added-value services.


1. Legislation could impact. 2. Great risk involved 3. Very high competition prevailing in the industry. 4. Vulnerable to reactive attack by major competitors. 5. Lack of infrastructure in rural areas could constrain investment. 6. High volume/low cost market is intensely competitive.





Mar '11

Mar '10

Mar '09 12 months

Mar '08 12 months

Mar '07 12 months

12 months 12 months Capital and Liabilities: Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Net Worth Deposits Borrowings Total Debt Other Liabilities & Provisions Total Liabilities 465.23 465.23 0.00 0.00 24,914.04 0.00 25,379.27 14,394.06 28,992.86 457.74 457.74 0.00 0.00 21,064.75 0.00 21,522.49 12,915.69 20,615.94

425.38 425.38 400.92 0.00 14,226.43 0.00 15,052.73 142,811.58 2,685.84 145,497.42 22,720.62 183,270.77 Mar '09 12 months 13,527.21 3,979.41 98,883.05 58,817.55 3,956.63 2,249.90 1,706.73 0.00 6,356.83 183,270.78 396,594.31 17,939.62 344.44

354.43 354.43 0.00 0.00 11,142.80 0.00 11,497.23 100,768.60 4,478.86 105,247.46 16,431.91 133,176.60 Mar '08 12 months 12,553.18 2,225.16 63,426.90 49,393.54 2,386.99 1,211.86 1,175.13 0.00 4,402.69 133,176.60 582,835.94 17,092.85 324.38

319.39 319.39 0.00 0.00 6,113.76 0.00 6,433.15 68,297.94 2,815.39 71,113.33 13,689.13 91,235.61 Mar '07 12 months 5,182.48 3,971.40 46,944.78 30,564.80 1,917.56 950.89 966.67 0.00 3,605.48 91,235.61 202,126.73 7,211.88 201.42

208,586.41 167,404.44 222,980.47 180,320.13

277,352.60 222,458.56 Mar '11 Mar '10

12 months 12 months Assets Cash & Balances with RBI 25,100.82 15,483.28 14,459.11 Balance with Banks, Money at 4,568.02 Call Advances Investments Gross Block Accumulated Depreciation Net Block Capital Work In Progress Other Assets Total Assets Contingent Liabilities Bills for collection Book Value (Rs) 70,929.37 5,244.21 3,073.56 2,170.65 0.00 14,601.08

159,982.67 125,830.59 58,607.62 4,707.97 2,585.16 2,122.81 0.00 5,955.15

277,352.61 222,458.56 559,681.87 466,236.24 28,869.10 545.53 20,940.13 470.19

Figure 4



Mar '11 Income Interest Earned Other Income Total Income Expenditure Interest expended Employee Cost Selling and Admin Expenses Depreciation Miscellaneous Expenses Preoperative Exp Capitalised Operating Expenses Provisions & Contingencies Total Expenses Net Profit for the Year Extraordionary Items Profit brought forward Total Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs) Appropriations Transfer to Statutory Reserves Transfer to Other Reserves Balance c/f to Balance Sheet Total 997.52 392.64 6,174.24 8,456.55 84.40 165.00 545.53 9,385.08 2,836.04 2,510.82 497.41 5,205.97 0.00 8,045.36 3,004.88

Mar '10

Mar '09

Mar '08

Mar '07

19,928.21 16,172.90 4,433.51 3,810.62 24,361.72 19,983.52 7,786.30 2,289.18 3,395.83 394.39 3,169.12 0.00 7,703.41 1,545.11

16,332.26 3,470.63 19,802.89 8,911.10 2,238.20 2,851.26 359.91 3,197.49 0.00 7,290.66 1,356.20 17,557.96 2,244.94 -0.59 2,574.63 4,818.98 0.00 425.38 72.29 52.77 100.00 344.44 641.25 224.50 497.67 3,455.57 4,818.99

10,115.00 2,205.38 12,320.38 4,887.12 1,301.35 974.79 271.72 3,295.22 0.00 3,935.28 1,907.80 10,730.20 1,590.18 -0.06 1,932.03 3,522.15 0.00 301.27 51.20 44.87 85.00 324.38 436.05 159.02 352.47 2,574.61 3,522.15

6,889.02 1,510.24 8,399.26 3,179.45 776.86 727.53 219.60 2,113.28 0.00 2,590.66 1,246.61 7,016.72 1,382.54 -0.35 1,455.02 2,837.21 0.00 223.57 38.00 43.29 70.00 201.42 288.38 114.14 261.57 1,932.03 2,596.12

20,435.32 17,034.82 3,926.40 -2.65 4,532.79 8,456.54 0.00 767.62 124.53 2,948.70 -0.93 3,455.57 6,403.34 0.00 549.29 91.23 64.42 120.00 470.19 935.15 294.87 640.52 4,532.79 6,403.33

Proposed Dividend/Transfer to Govt 892.15

Figure 5



Cash Flow of HDFC Bank

------------------- in Rs. Cr. ------------------Mar '11 12 months Mar '10 12 months 4289.14 9389.89 -551.51 3598.91 12435.78 17506.62 29942.40 Mar '09 12 months 3299.25 -1736.14 -663.78 2964.66 564.74 14778.34 15343.08 Mar '08 12 months 2280.63 3583.43 -619.82 3628.34 6591.95 8074.54 14666.49 Mar '07 12 months 1638.75 666.63 -311.40 1637.88 1993.11 6188.66 8181.77

Net Profit Before Tax Net Cash (used Investing Activities in)/from


Net Cash From Operating Activities -375.83 -1122.74

Net Cash (used 1227.99 in)/from Financing Activities Net (decrease)/increase In Cash -273.56 and Cash Equivalents Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents 29942.40 29668.83

Figure 6


Ratio Analysis
MMMar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07

Per share ratios

Adjusted EPS (Rs) Adjusted cash EPS (Rs) Reported EPS (Rs) Reported cash EPS (Rs) Dividend per share Operating profit per share (Rs) Book value (excl rev res) per share (Rs) Book value (incl rev res) per share (Rs.) Net operating income per share (Rs) Free reserves per share (Rs) 84.42 95.11 84.40 95.09 16.50 160.36 545.53 545.53 524.34 419.10 64.33 72.95 64.42 73.03 12.00 106.25 470.19 470.19 436.03 363.55 52.68 61.14 52.77 61.24 10.00 92.36 344.44 344.44 464.77 252.37 44.85 52.51 44.87 52.53 8.50 107.32 324.38 324.38 348.57 35.77 50.20 35.74 50.16 7.00 86.19 201.42 201.42 259.98

269.89 155.69

Profitability ratios
Operating margin (%) Gross profit margin (%) Net profit margin (%) Adjusted cash margin (%) Adjusted return on net worth (%) Reported return on net worth (%) Return on long term funds (%) 30.58 28.54 16.09 18.13 15.47 15.47 59.91 24.36 22.39 14.76 16.71 13.68 13.70 56.08 19.87 18.05 11.35 13.15 15.29 15.32 83.31 30.78 33.15 28.58 30.50 12.82 13.57 15.01 19.07 13.82 17.75 13.83 17.74 62.34 74.91

Leverage ratios
Long term debt / Equity Total debt/equity Owners fund as % of total source Fixed assets turnover ratio 8.22 10.84 4.65 7.78 11.39 4.24 9.75 9.30 5.00 -

8.76 10.62 10.24 8.60 5.18 4.33

Liquidity ratios
Current ratio Current ratio (inc. st loans) Quick ratio 0.50 0.06 6.89 0.28 0.03 7.14 0.27 0.03 5.23 0.26 0.26 0.03 0.04 4.89 4.07


MMMar ' 11 Inventory turnover ratio -

Mar ' 10 -

Mar ' 09 -

Mar ' 08 -

Mar ' 07 -

Payout ratios
Dividend payout ratio (net profit) Dividend payout ratio (cash profit) Earning retention ratio Cash earnings retention ratio 22.72 20.16 77.29 79.84 21.72 19.15 78.25 80.82 22.16 19.10 77.79 80.87 22.16 22.91 18.93 16.32 77.83 77.11 81.07 83.69

Coverage ratios
Adjusted cash flow time total debt Financial charges coverage ratio Fin. charges cov.ratio (post tax) 47.14 0.79 1.47 50.13 1.63 1.43 54.91 0.44 1.29 54.14 42.60 0.78 1.90 1.38 1.50

Component ratios
Material cost component (% earnings) Selling cost Component Exports as percent of total sales Import comp. in raw mat. consumed Long term assets / total Assets Bonus component in equity capital (%) 0.65 0.83 0.41 0.91 0.54 0.90 0.92 0.90 -

0.91 0.89 -

Figure 7




The main working methodology was to understand the banking functions provided by the HDFC bank to its valuable customers. To understand more on the banking functions I used to attend the clients coming to the bank daily and trying to know about the services they need and queries they have. Then I used to direct to the respective service managers who can help them and standing with hem and understanding how they are doing the work. Then I used to work with different service managers and was given a task to understand the working of the different services being provided to the customers. 1. I was given a project on KYCs. In this project I was given a data of around 30 priority customers had to interact with the customers and tell them about the KYCs and telling them to get their KYC documents updated. Then I used to maintain the data of all the customers whom I have interacted with.

2. The next project which I was given was the electronic services. In this I was given a task to get at least 10 forms filled by the walk INS clients on the daily bases. And at the end of the day I used to give the forms to the respected service managers to send it for the scheduling.

3. Then in the next task I was given a task to update the banks dashboard every 15 days. In this I was given a format on the basis of which I had to make the slides. It included updating the current news related to the economy, political, sports etc.


WHAT IS KYCS? Know Your Customer KYC enables banks to know/ understand their customers and their financial dealings to be able to serve them better and manage risks prudently.

EXPERIENCE OF Working with HDFC Bank The working really proved to be beneficial for me. I was very successful. It gave out positive results as I got to learn different things from different service managers and their style of working and how the customers queries are solved. Almost got to learn the whole basics of the banking and got interact with customers. As this working helped me to interact with the customers, it helped in me building the confidence to talk to them.

When I interacted the priority clients, they were very supportive and listened and to the things very respectfully. Earlier I was very hesitant in talking to clients but slowly and steadily it build in me the confidence to talk to them. My next project i.e. on the electronic services was also successful as I was able to achieve my target off getting the applications filled by the customers an encouraging them to operate their accounts through the net and visiting less to the branch.



All the private and public sector banks are recognizing importance of the relationship management in their growth and customer retention. The officials try to make best relation with the customers. Staff member gives regular updates to their customers and information of the product and their services. The registers and files are systematically maintained on a daily basis and in an organized manner. Most of the respondents are having more than two accounts and holds more than two products with HDFC Bank. Bank has shown better utilization of cash balance of customer by cross selling other products.
According to respondents feedback it is observed that bank is in need to increase

their branches in region as well as pay concern to increase their ATM network. Greater retention of customers is being needed as they are offering various products and services. This enables a great understanding of what customers may expect from the bank and what to offer to them. This leads to defining where each customer is in his relationship with the bank so that cross-selling can be done Officials employed find themselves in much burden as there are very less number of sales executives.



Managers should recognize that a certain amount of conflict will almost always exist between professional and hierarchical authority and control systems. The key is to transform this conflict into motivation by structurally insulating these workers from organization pressure, while simultaneously making them aware of the importance that their work holds for the firms well being and its continued competitive advantages.

They should recognize that managing high-technology and professional employees is significantly different from managing non-professionals have a different set of values and characteristics, which have been gained through their socialization in the technical specialty. Managers need to be cognizant of those values and characteristics if they are not anticipate tension points and enhance the fit between the individual and the job.

They should attempt to develop HR practices and policies that have had some success in attracting, motivating and retaining the high-tech work force.

That requires, at a minimum, knowledge of or systematic diagnosis of organizational practices, and matching HR practices to the organizations culture.


It also requires that a cadre of competent HR manager manage the transition. The days of ready-fire aim are over for high-technology firms seeking competitive advantages in their markets.

They should study the change process and learn from their experiences from change owing to internal and external factors, including departures from tradition, new leaders with new visions, crisis or other starting events, key decisions on the part of senior management, or tests, of their infrastructure ability to accommodate change. Firm also change because of change. But professionals and other high-tech workers must clearly see the need for change, otherwise, they may not support the change, or they may even sabotage it, therefore communication must be reemphasized. They should design jobs and work relationship to take advantage of technical specialties. For example, rotating professionals through multiple role and job responsibilities can sensitize them to new ides and opportunities.

They should establish career sensitive tracking systems so that career development becomes an integrated part of their firm practices.

They should utilize a menu of salient relevant that are relevant for high tech and professional workers. These reminders ideally should be linked to performance, but in some culture they might be liked so effort, risk taking, or other relevant behaviors.



Banking : The Network is the bank, by Yogesh Sharma, Dataquest, January 31, 2006

Race will end in survival of the fittest, The Financial Express, November 29, 2006.

The Times of India, 26 July, 2007. The future is in e-banking by Mr. K.V. Kamath (Managing Director, ICICI), April 14, 2002, Business Line.

RBI road map for banking, The Indian Express, July 21, 2007. Banking in India, by Dr A. K. Mishra (Professor & Chairman of Finance Group at IIM Lucknow).