Organization Study of HDFC Bank by Sanjay Gupta

A Project Report On ORGANIZATION STUDY OF HDFC BANK SUBMITTED IN PARTIAL FULFILMENT OF MASTER OF BUSINESS ADMINISTRATION DEGREE MADURAI KAMRAJ UNIVERSITY, MADURAI SUBMITTED BY: NISAR HEMAL GOPAL MBA –II (FINANCE) Enrollment Number A9A7511826

THROUGH THE DIRECTOR DDE MADURAI KAMRAJ UNIVERSITY MADURAI- 625021 Batch 2008 - 2010

CERTIFICATE I hereby certify that Mr. Nisar Hemal Gopal student of MBA (Finance) from M.K. University, Madurai has completed project work entitled as ‘A STUDY OF HDFC BANK ‘under my guidance.

As per my knowledge this is his original work bases on available data and for partial fulfillment of MBA program.

Date:

ACKNOWLEDGEMENT I take this opportunity to express my deep sense of gratitude, thanks and regards towards all of those who have directly or indirectly helped me in the successful completion of this project.

I am grateful to all my friends who have helped me in the successful completion of this project.

Last but not the least I am indebted to my PARENTS & my WIFE who provided me their time, support and inspiration needed to prepare this report.

Date: -10-8-2009

Place: - Mumbai

Signature

Nisar Hemal Gopal

CONTENTS 1.

INTRODUCTION................................................................................

1.1 HISTORY OF BANKING................................................. 1.2 MISSION, VISION AND BUSINESS STEATEGY….. 1.3 BOARD OF DIRECTORS……………........................ 1.4 AWARDS……………………………………………. 1.5 INTEGRATED FINANCIAL SERVICES…………. 1.6 BUSINESS SEGMENT…………………………….

PRODUCT OF HDFC BANK………………………………………. 2.1 ACCOUNTS & DEPOSITES……………………..… 2.2 LOANS…………………………………………….. 2.3 CARDS…………………………………………….. 2.4 INVESMENT&INSURANCE…………………….. 2.5 FOREX&TRADE SERVICE……………………….. 2.6 PAYMENT SERVICES…………………………...... 2.7 PRIVATE BANKING………………………………

DEPARMENT OF HDFC BANK………………………………… 3.1 HUMAN RESOURSE DEPARTMENT………..…. 3.2 MARKETING DEPARTMENT…………………… 4

3.3 FINANCE DEPARMENT………………………… 4.

SWOT ANAYSIS………………………………………………….

BIBLIOGRAPHY……………………………………………

HISTORY OF BANKING Banking is nearly as old as civilization. The history of banking could be said to have started with the appearance of money. The first record of minted metal coins was in Mesopotamia in about 2500B.C. the first European banknotes, which was handwritten appeared in1661, in Sweden. Cheques and printed paper money appeared in the 1700’s and 1800’s, with many banks created to deal with increasing trade. The history of banking in each country runs in lines with the development of trade and industry, and with the level of political confidence and stability. The ancient Romans developed an advanced banking system to serve their vast trade network, which extended throughout Europe, Asia and Africa. Modern banking began in Venice. The word bank comes from the Italian word “ ban co”, meaning bench, because moneylenders worked on benches in market places. The bank of Venice was established in 1171 to help the government raise finance for a war. At the same time, in England merchant started to ask goldsmiths to hold gold and silver in their safes in return for a fee. Receipts given to the Merchant were sometimes used to buy or sell, with the metal itself staying under lock and key. The goldsmith realized that they could lend out some of the gold and silver that they had and charge interest, as not all of the merchants would ask for the gold and silver 5

back at the same time. Eventually, instead of charging the merchants, the goldsmiths paid them to deposit their gold and silver. The bank of England was formed in 1694 to borrow money from the public for the government to finance the war of Augsburg against France. By 1709, goldsmith were using bank of England notes of their own receipts. New technology transformed the banking industry in the 1900’s round the world, banks merged into larger and fewer groups and expanded into other country.

BANKING STRUCTURE IN INDIA: In today’s dynamic world banks are inevitable for the development of a country. Banks play a pivotal role in enhancing each and every sector. They have helped bring a draw of development on the world’s horizon and developing country like India is no exception. Banks fulfills the role of a financial intermediary. This means that it acts as a vehicle for moving finance from those who have surplus money to (however temporarily) those who have deficit. In everyday branch terms the banks channel funds from depositors whose accounts are in credit to borrowers who are in debit. Without the intermediary of the banks both their depositors and their borrowers would have to contact each other directly. This can and does happen of course. This is what has lead to the very foundation of financial institution like banks. Before few decades there existed some influential people who used to land money. But a substantially high rate of interest was charged which made borrowing of money out of the reach of the majority of the people so there arose a need for a financial intermediate.

The Bank have developed their roles to such an extent that a direct contact between the depositors and borrowers in now known as disintermediation. Banking industry has always revolved around the traditional function of taking deposits, money transfer and making advances. Those three are closely related to each other, the objective being to lend money, which is the profitable activity of the three. Taking deposits generates funds for lending and money transfer services are necessary for the attention of deposits. The Bank have introduced progressively more sophisticated versions of these services and have diversified introduction in numerable areas of activity not directly relating to this traditional trinity 7

INDIAN BANKING SYSTEM

Reserve Bank of India

Schedule Banks

State co-op Banks

Non-Schedule Banks

Central co-op Banks and Primary Cr. Societies

Commercial Banks

Indian

Public Sector Banks

State Bank of India and its Subsidiaries

Commercial Banks

Foreign

Private Sector Banks

Other Nationalized Banks

HDFC, ICICI etc.

Regional Rural Banks

INDIAN BANKING INDUSTRY ANALYSIS: The banking scenario in India has been changing at fast pace from being just the borrowers and lenders traditionally, the focus has shifted to more differentiated and customized product/service provider from regulation to liberalization in the year 1991, from planned economy to market. Economy, from licensing to integration with Global Economics, the changes have been swift. All most all the sector operating in the economy was affected and banking sector is no exception to this. Thus the whole of the banking system in the country has undergone a radical change. Let us see how banking has evolved in the past 57 years of independence. After independence in 1947 and proclamation in 1950 the country set about drawing its road map for the future public ownership of banks was seen inevitable and SBI was created in 1955 to spearhead the expansion of banking into rural India and speed up the process of magnetization. Political compulsion’s brought about nationalization of bank in 1969 and lobbying by bank employees and their unions added to the list of nationalized banks a few years later. Slowly the unions grew in strength, while bank management stagnated. The casualty was to the customer service declined, complaints increased and bank management was unable to item the rot. In the meantime, technology was becoming a global phenomenon lacking a vision of the future and the banks erred badly in opposing the technology up gradation of banks. They mistakenly believed the technology would lead to retrenchment and eventually the marginalization of unions. 9

The problem faced by the banking industry soon surfaced in their balance sheets. But the prevailing accounting practices unable banks to dodge the issue. The rules of the game under which banks operated changed in 1993. Norms or income Recognition, Assets classification and loan loss provisioning were put in place and capital adequacy ratio become mandatory. The cumulative impact of all these changes has been on the concept of state ownership in banks. It is increasingly becoming clear that the state ownership in bank is no longer sustainable. The amendment of banking regulation act in 1993 saw the entry of new private sector banks and foreign banks.

MAJOR PLAYER IN INDIA 1. HDFC BANK LTD 2. ICICI BANK LTD 3. STATE BANK OF INDIA LTD 4. PUNJAB NATOINAL BANK LTD 5. BANK OF BARODA LTD 6. FEDERAL BANK LTD 7. AXIS BANK LTD 8. ING VYSYA BANK LTD 9. IDBI BANK LTD 10. INDUSIND BANK LTD 11. YES BANK LTD

INTRODUCTION

INTRODUCTION The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an ‘in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. HDFC 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. 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 service excellence would help us get there. Today, we are proud to say that we are well on our way towards that goal.

HDFC Bank Limited (the Bank) is an India-based banking company engaged in providing a range of banking and financial services, including commercial banking and treasury operations. The Bank has a network of 1412 branches and 3295 automated teller machines (ATMs) in 528 cities and total employees are 52687.

B R ANC HE S (NOS ) 1412

2009

1725

2010

A T Ms (Nos .) 4232 3295

2009

2010

SNAPSHOT Company Background Industry Business Group Incorporation Date Public Issue Date Face Value Company/Business Registration No Key Officials CEO

Finance - Banks - Private Sector. HDFC Group 31/12/1994 31/12/1995 10.0000 INE040A01018 Aditya Puri

HISTORY OF HDFC BANK 13

FOUNDERS MR.HASMUKHBHAI PAREKH If ever there was a man with a mission it was Hasmukhbhai Parekh, our Founder and ChairmanEmeritus, who left this earthly abode on November 18, 994. Born in a traditional banking family in Surat, Gujarat, Mr. Parekh started his financial career at Harkisandass Lukhmidass - a leading stock broking firm. The firm closed down in the late seventies, but, long before that, he went on to become a towering figure on the Indian financial scene. In 1956 he began his lifelong financial affair with the economic world, as General Manager of the newly-formed Industrial Credit and Investment Corporation of India (ICICI). He rose to become Chairman and continued so till his retirement in 1972. At the ripe age of 60, Hasmukhbhai started his second dynamic life, even more illustrious than his first. His vision for mortgage finance for housing, gave birth to the Housing Development Finance Corporation - it was a trend-setter for housing finance in the whole Asian continent. He was a true development banker. His building up HDFC without any government assistance, is itself a brilliant chapter in financial history. His wisdom and warmth drew people from all walks of life to him, for advice, guidance and inspiration.

A soft spoken man of few words, Mr. Parekh nevertheless held strong and definite views with a quiet conviction. He was always concerned with building bridges, improving and encouraging communication between people. He was also a writer in his own right. There are over 200 published articles by him, full of incisive comments on finance and economics. In 1953 he brought out a volume called: The Bombay Money Market. It detailed the intricate working of the Indian money market. His works in Gujarati - Hirane Patro, Hirane Vadhu Patro occupy pride of place in Gujarati literature. In 1992, the Government of India honoured him with the Padma Bhushan Award. The London School of Economics & Political Science conferred on him an Honorary Fellowship. But there was much more to the man than his financial genius. In his own unassuming way, Hasmukhbhai devoted all his life to raising resources for philanthropic causes. He was one of the Founder Members of the Centre for Advancement of Philanthropy, and its Chairman till 1993. He took active interest in the Bombay Community Public Trust, designed specifically to serve the needs of the city's underprivileged citizens. When Mr. Deepak Parekh took over as Chairman from Hasmukhbhai, he said: "Taking over from H.T. Parekh is a formidable task; his vision. brought about not only an institution, but an entire concept which has proved itself to be of lasting importance." In his last years, developments in the financial sector brought him some measure of satisfaction. Says ICICI Chairman, N. Vaghul: "The most gratifying aspect about his life is that values he cherished all his life, came into reality in the last years. opening up the financial sector, and deregulation of lending rates were issues he stood for all his life, and this happened before he passed away." Farewell dear Hasmukhbhai! All of us will miss not only H.T. Parekh the financial wizard, but much more so, the man. The only and best tribute we can pay to such 15

an individual is to try and follow in his footsteps, keeping in mind his high ideals and philanthropic outlook.

MR. DEEPAK PAREKH Deepak Parekh is the Chairman of HDFC, the country’s leading housing finance company. A pioneer in mortgage finance, he has enabled scores of Indian middle class people owning their houses or apartments through affordable loans. A chartered accountant, Deepak Parekh began his career with Ernst & Ernst Management Consultancy Services in New York. After returning to India, he worked with Grindlays Bank and also Chase Manhattan Bank as its assistant representative for South Asia. Deepak Parekh joined HDFC in 1978. He was promoted as its Managing Director in 1985 and appointed its Chairman in 1993. He is instrumental in making the HDFC a premier housing finance institution in the country. Deepak Parekh is also the Non-Executive Chairman of Infrastructure Development Finance Company Ltd (IDFC), a Government of India enterprise for infrastructure projects in 1997. He is also the Non-Executive Chairman of Glaxo India Ltd & Burroughs Wellcome (India) Ltd and on the Board of Castrol BP India; Hindustan Lever; Siemens Ltd, Mahindra & Mahindra and Indian Hotels Company. He is also a non-executive, independent Director of SingTel. Deepak Parekh has been a member of various Committees set up by the Government of India. He was appointed Chairman of the high level expert committee, formed to recommend measures for strengthening the Unit Scheme – 1964. The Reserve Bank of India appointed him Chairman of the Advisory Group for Securities Market Regulation, which was tasked to compare the level of adherence to international standards in India with that in other countries. He was

also Chairman of the Expert Committee constituted by the Ministry of Power to look into the reform efforts in the power sector. Deepak Parekh has won several awards including Businessman of the Year 1996 by Business India and the JRD Tata Corporate Leadership Award by All India Management Association (AIMA). He was the first recipient of the Qimpro Platinum Award for Quality for his contributions to the services sector and the youngest recipient of the prestigious Corporate Award for Life Time Achievement by the Economic Times. He was also conferred Padma Bhushan by the Government of India.

HISTORY HDFC BANK LTD was incorporated in August 1994 in the name of 'HDFC Bank Limited’, with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. HDFC BANK LTD was amongst the first to set up a bank in the private sector. The bank was incorporated on 30th August 1994 in the name of ‘HDFC Bank Limited’, with its registered office in Mumbai. It commenced operations as a Scheduled Commercial Bank on 16th January 1995. The bank has grown consistently and is now amongst the leading players in the industry

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 17

ideally positioned to promote a bank in the Indian environment In a milestone transaction in the Indian banking industry, Times Bank was merged with HDFC Bank Ltd., effective February 26, 2000.

MISSION I.

World Class Indian Bank

II.

Benchmarking against international standards.

III.

To build sound customer franchises across distinct businesses

IV.

Best practices in terms of product offerings, technology, service levels, risk management and audit & compliance

VISION STATEMENT OF HDFC BANK The HDFC Bank is committed to maintain the highest level of ethical standards, professional integrity and regulatory compliance. HDFC Bank’s business philosophy is based on four core values such as:1. Operational excellence. 2. Customer Focus. 3. Product leadership. 4. People. The objective of the HDFC Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one-step window for all his/her requirements. The HDFC Bank plus and the investment advisory services programs have been designed keeping in mind needs of customers who seeks distinct financial solutions, information and advice on various investment avenues.

BUSINESS STRATEGY I.

Increasing market share in India’s expanding banking

II.

Delivering high quality customer service

III.

Maintaining current high standards for asset quality through disciplined credit risk management

IV.

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

BOARD OF DIRECTORS DESIGNATIO

PERSON

Mr. Jagdish Capoor Mr. Aditya Puri Mr. Paresh Sukthankar Mr. Harish Engineer Mr. Keki M. Mistry Mr. Ashim Samanta Mr. Arvind Pande Mrs. Renu Karnad Mr. C M Vasudev Mr. Gautam Divan Dr. Pandit Palande

Chairman Managing Director Executive Director Executive Director Director Director Director Director Director Director Director

Awards and Achievements - Banking Services 19

YEAR 2010 IDRBT Technology 2009 Awards ACI Excellence Awards 2010

Winner - 1) IT Infrastructure 2) Use of IT within the Bank Runners-up - IT Governance (Large Banks) Highly Commended – Asia Pacific HDFC Bank

Avaya Global

Customer Responsiveness Award - Banking & Financial

Connect 2010

Services category

Financial Express - Ernst Young

Best New Private Sector Bank

Survey 2009-10 Asian Banker

 Best Retail Bank in India

Excellence

 Excellence in Automobile Lending

Awards 2009

 Bank M&A Integration  Technology Implementation

The Asset Triple A Awards

Best Cash Management Bank in India

Euromoney Private Banking

1) Best Local Bank in India (second year in a row) 2)

and Wealth

Best Private Banking Services overall (moved up from

Management Poll

No. 2 last year)

2010 Financial Insights Innovation Awards 2010 Global Finance Award 2 Banking Technology Awards 2009

Innovation in Branch Operations - Server Consolidation Project Best Trade Finance Provider in India for 2010 1) Best Risk Management Initiative and 2) Best Use of Business Intelligence. 20

SPJIMR Marketing Impact Awards (SMIA)

2nd Prize

2010 Business Today Best Employer

Listed in top 10 Best Employers in the country

Survey

YEAR-2009 EUROMONEY AWARDS 2009 Economic Times

'BEST BANK IN INDIA'

Brand Equity & Nielsen

Most Trusted Brand - Runner Up

Research annual survey 2009 Asia Money 2009 Awards IBA Banking Technology Awards 2009 Global Finance Award IDRBT Banking Technology Excellence

'Best Domestic Bank in India'

'Best IT Governance Award - Runner up'

'Best Trade Finance Bank in India for 2009

'Best IT Governance and Value Delivery'

Award 2008 Asian Banker Excellence in Retail Financial

'Asian Banker Best Retail Bank in India Award 2009 '

Services 21

INTEGRATED FINANCIAL SERVICES

SECURITISATION

HDFC CHUBB GENERAL INSURANCE CO. LTD.

Future Activities

DISTRIBUTION

BUSINESS SEGMENT 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:

WHOLESALE BANKING SERVICES: 23

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 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.

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 worldclass 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. 24

HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (VISA Electron) and issues the Master card Maestro debit card as well. The Bank launched its credit card business in late 2001. By 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.

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.

PRODUCT OF HDFC BANK

PERSONAL BANKING 26

ACCOUNT & DEPOSITS SERVICE Banking should be effortless. With HDFC Bank, the efforts are rewarding. No matter what a customer's need and occupational status, we have a range of solutions that are second to none. Whether you're employed in a company and need a simple Savings account or run your own business and require a robust banking partner, HDFC Bank not only has the perfect solution for you, but also can recommend products that can augment your planning for the future. It includes these services: •

Saving accounts.

•

Current accounts.

•

Fix deposits.

•

Demat account.

•

Safe deposits lockers.

Savings Accounts These accounts are primarily meant to inculcate a sense of saving for the future, accumulating funds over a period of time. Whatever person’s occupation, bank have confident that person will find the perfect banking solution. There some saving accounts like: -

Regular Saving Account: An easy-to-operate savings account that allows you to issue cheques, draw Demand Drafts and withdraw cash. Check up on your balances from the comfort of your home or office through Net Banking, Phone Banking and Mobile Banking. If you need money urgently then you can take money from the ATM machine. There are 1977 ATM centers across the country.

Saving plus Account 27

Introducing the best banking option for you with HDFC Bank Savings plus Account. Now you can get access to some of the finest banking facilities with HDFC Bank's Savings plus Account. All you have to do is maintain an Average Quarterly Balance of Rs. 10,000/-.

Saving Max Account Welcome to a world of convenience. Presenting Savings Max account, loaded with maximum benefits to make your banking experience a pleasure. By maintaining an average quarterly balance of just Rs. 25,000/- you get a host of premium services from HDFC Bank absolutely free.

Senior Citizen Account HDFC Bank appreciates your needs and endeavors, which is why, they present an account especially dedicated to customer, which like a dutiful child will help you fulfill your needs in the best manner possible.

No frills Account In an effort to make banking simpler and more accessible for customers, bank has introduced the 'No Frills' Savings Account, which offers customer all the basic banking facilities. Customer can even avail of services like Net Banking, Mobile banking free of cost. In this customer can put Zero Initial Pay-in and a Zero Balance account

Institutional saving accounts

A specially designed account that offers twin benefits of a savings as well as a current account. Customer’s funds continue to earn you interest while he enjoys hassle-free banking & a host of other features. All this and more in a Zero Balance account.

Salary Accounts In this account customer can get salary from where he/she doing such job and organization or company at where the customer of the bank in doing job deposit their salary in to the salary account a person can get salary. There are various kinds of saving accounts in the HDFC Bank like: •

Pay roll account.

•

Classic salary account.

•

Regular salary account.

•

Premium salary account.

•

Defense salary account.

•

No frills salary account.

•

Reimbursement salary account.

Kid’s advantage account Start saving for your child today and secure his/her future a sentence tells by the Hdfc bank. Open a Savings Account and transfer money every month into customer’s Kids Advantage Account and watch the savings grow as customer’s child grows. The accumulated savings in the Kids Advantage Account can over the years help in meeting customer child's needs. Main features and benefits of this account are as follow:-

For their Growing Needs •

Free Education Insurance cover of Rs. 1, 00,000/- in the event of death of the parent / guardian through vehicular accident by road, rail or air to safeguard the future of your child.

•

ATM/International Debit Card will be issued for children between 7-18 years of age in the child's name with your permission. The amount your child is able to withdraw is Rs. 2,500/- at ATMs or spend Rs. 2,500/- at merchant locations.

•

Free cash withdrawals on any other Bank's ATM*

•

1 free Personalised cheque book for your child.

•

Monitor the transactions of your child's account with the free quarterly physical statement of account or free monthly Email Statement of account

•

Free Net Banking for you to monitor your child's account.

•

Free SMS/Email alerts informing you about the account transactions.

For their Secured Future •

Standing Instruction to transfer any amount from your account to your Kid's Advantage Account every month (Minimum value = Rs. 1,000/- & Minimum tenure = 1 year) (Mandatory).

•

Once the balance in the Kid's Advantage Account reaches/exceeds Rs. 35,000/-, the amount in excess of Rs. 25,000/- will automatically be transferred into a Fixed Deposit for 1 year 1 day, in your child's name, by signing in for our sweep-out facility.

•

You can also opt for systematic investments in mutual funds from the Kid's Advantage Account in your child's name.

Current accounts HDFC Bank Current Account gives the power of inter-city banking with a single account and access to more than cities. From special cheques that get treated at par with local ones in any city where branch, faster collection of outstation cheques (payable at branch locations), free account to account funds transfer between 30

HDFC Bank accounts to Free inter-city clearing of up to 100 lakhs per month, bank’s priority services have become the benchmark for banking efficiency. Now, with an HDFC Bank Current Account, experience the freedom of multi-city banking. Person can have the power of multi-location access to his account from any of our 761 branches in 327 cities. Not only that, he can do most of his banking transactions from the comfort of his office or home without stepping out. There are various kinds of current account in this bank like: -

Plus current account HDFC Bank plus Current Account gives the power of inter-city banking with a single account and access to more than cities. Plus Current Account requires maintaining an average quarterly balance of Rs. 100,000.

Trade current account In today's changing business requirements, you need to transfer funds across cities, and time is of the essence. HDFC Bank Trade Current Account gives power of inter-city banking with a single account. From special cheques that get treated at par with local ones in any city where bank have a branch, to free account to account funds transfer between HDFC Bank accounts, to free inter-city clearing of up to 50 lacs per month, bank’s priority services have become the benchmark for banking efficiency. Trade Current Account requires maintaining an average quarterly balance of Rs. 40,000.

Premium current account 31

Business needs a partner who can manage finances while concentrate on growing business. Form this account customer can avail benefits of inter-city banking account that requires an average quarterly balance of only Rs. 25,000, offers Payable-At-Par cheque book facility & FREE inter-city clearing transactions across our network up to Rs.25 Lacs per month. A Current Account with the benefits of accessing account from a large network of branches, and through direct access channels - the phone, mobile, Internet and through the ATM.

Regular current account A Current account is ideal for carrying out day-to-day business transactions. With the HDFC Bank Regular Current Account, customer can access account anytime, anywhere, pay using payable at par cheques or deposit cheque at any HDFC bank branch. It also facilitates FREE NEFT transactions & FREE RTGS collections for faster collections in account. Regular Current Account requires to maintain an average quarterly balance of only Rs. 10,000. With a vast network of branches in cities all over the country, and access to a multitude of ATM's, customer can keep track of all transactions anytime.

Reimbursement Current Account No more paperwork, no more receipts to keep track of - a hassle-free account that allows deposit the reimbursements receive from company/organization on a monthly basis. To open this account a person has to follow these processes:

Procure an Account Opening Document (AOD) from HDFC Bank. (If person has just joined, first request to company to open up a Salary Account for particular person). Mention Salary Account number and Debit Card number on the AOD so that Debit card can be linked to both, Salary Account as well as new Reimbursement Account. Request company to directly credit cash payments to the Reimbursement Account.

RFC – Domestic Account Full name of this account is Resident foreign currency account. Have you accumulated foreign currency from traveling abroad frequently? Received gifts from relatives in foreign currency? Or earned it by any other means as approved by the Reserve Bank of India? If so, open Resident Foreign Currency Domestic Account and manage foreign currency efficiently. Person can choose to set up your account either in US Dollar, Great Britain Pound or Euro. To open this accounts a person as to follow this process: Choose the currency in which person wish to operate. Open account with an initial amount as per the following-US Dollar = 250 Great Britain Pound = 200 Euro = 250 and maintain an Average Quarterly Balance of the same amount.

Flexi current account Tired of static transaction limits during peak seasons? HDFC Bank Flexi Current Account is the answer to changing banking needs during peak seasons.

With HDFC Bank Flexi Current Account Cash Deposit and Anywhere Transaction limits are a multiple of the balance you maintain in Current Account. So, during peak seasons, customer get the benefit of higher transaction limits due to the higher average balances maintained in account. What’s more, during lean seasons, person need not worry about maintaining huge balances to enjoy high transaction limits, which person anyway may not need. Flexi Current Account requires to maintain a minimum Average Monthly Balance (AMB) of just Rs. 75,000.

Apex current account The top position is always the desirable position. With the Apex current account, take business to a new high. On maintaining an average quarterly balance of Rs. 10 lacs, this account makes sure person make the most of every business opportunities coming his way. Unlimited, free, anywhere Banking experience at the APEX is reserved for person who joints this.

Max current account Maximum benefits and minimum hassles for customer with Max Current Account with a Rs. 5 lacs average quarterly balance requirement, bank present to world of privileges that helps business expand and grow. Features like maximum free transaction limits including other beneficial features on this current account truly enhances business potential to the Maximum.

Fix Deposits Long-term investments form the chunk of everybody's future plans. An alternative to simply applying for loans, fixed deposits allow to borrow from own funds for a limited period, thus fulfilling needs as well as keeping savings secure.

People can invest his/her money into either in security market or gold or mutual fund or into a fix deposits. People always go to that way where he/she can get more benefits and minimum risks. So, for this purpose he has a better chance to deposits money in to the fix deposit. If people believe in long-term investments and wish to earn higher interests on his/her savings, now is the time to invest money in HDFC bank Fixed Deposit. Get up to 9.75% on HDFC Bank Fixed Deposit with an additional 0.50% for Senior Citizens. What's more NO PENALTY if withdraw part of the FD in times of need. Flexibility, Security and High Returns all bundled into one offering.

Regular fix deposit As per the rules and regulation of the bank a person can deposit their money in to a fix deposit in the bank and can get the benefits of these facilities.

Five year tax saving fix deposit In 2006, it was announced for the first time that Bank fixed deposits booked by an Individual/HUF for 5 years & up to 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.

Supper saver facility Customer can enjoy a high rate of interest along with the liquidity of a Savings Account by opting for a Super Saver Facility on his or her savings account. Avail of an overdraft facility of up to 75% of the value of his or her Fixed Deposit.

Sweep-in facility

Do you wish to avoid taking overdrafts, and still take advantage of your Fixed Deposits? Then what you need is a Sweep-In Facility on savings account. Link Fixed Deposit to Savings or Current Account and use it to fall back on in case of emergencies. A deficit in Savings or Current Account is taken care of by using up an exact value from Fixed Deposit. Since deposits are broken down in units of Re 1/-, customer will lose interest only for the actual amount that has been withdrawn.

Demat Account Nowadays share market is becoming is the main occupation of the person. So to avoid faulty processes demat account is really most important for the share market and for the safety of shares it is most important. HDFC BANK is one of the leading Depository Participant (DP) in the country with over 8 Lac Demat accounts. HDFC Bank Demat services offers a secure and convenient way to keep track of securities and investments, over a period of time, without the hassle of handling physical documents that get mutilated or lost in transit. HDFC BANK is Depository participant both with -National Securities Depositories Limited (NSDL) and Central Depository Services Limited (CDSL).

Safe Deposit Lockers A Safe Deposit Locker with HDFC Bank is the solution to person’s fear. Located at select branches in cities all over the country, bank’s lockers ensure the safe keeping of valuables. Eligibility

An individual (not minor), firms, limited company, associations, clubs, trusts, societies, etc may hire a locker. Advantages of safe deposit locker in HDFC bank •

Wide Availability.

•

Lockers available in various sizes. i.e. Small, Medium, Large and Extra Large with varying rents.

•

Lockers are rented out for a minimum period of one year. Rent is payable in advance.

•

No deposits are required to avail a locker. Just open an account and get the locker facility.

•

There is a nominal annual charge, which depends on the size of the locker and the centre in which the branch is located.

Nomination for Safe Deposit Locker •

The Lockers and their contents can be nominated to people near and dear to you.

•

Nomination facility is available to individual hirer of Safe Deposit Locker.

•

In the case of a sole hirer of a safe deposit locker, nomination can be made in favor of only one individual.

•

Where the safe deposit locker is hired in the name of a minor, the nomination shall be made by a person lawfully entitled to act on behalf of the minor.

Terms & Conditions •

For obtaining a Locker at HDFC Bank you must be an account holder with Bank.

•

Lockers can be allotted individually as well as jointly.

•

The Locker holder is permitted to add or delete names from the list of persons who can operate the Locker and can have access to it.

•

Loss of Key is to be immediately informed to the concerned Branch. 37

LOAN In today’s competitive world every thing happens only with the help of money or through the money every person need money. But some time a person has not cash on hand at that time he needs lone either from any friend or from any financial institute. Lone dose not mean that only lower class person needs it but also upper class person it is needed. As per the requirement of the every person there are much type of loans are there in the HDFC bank.

Personal loan A person has so many dreams but some time due to scarcity of money a dream can’t be satisfy. So, here one solution for that person this is personal loan. From this he/she can fulfill their needs or requirement. It can be any thing either a dream of vacation or son/daughter’s admission to college or any wedding, so personal loan can be helpful in this entire requirement. As person ordered in the hotel for tea or coffee and it is immediately came fast, same over here any person want to get a personal loan with the nominal documents he can get the loan.

Home loan

HDFC Bank brings HDFC home loans to doorstep. With over 30 years of experience, a dedicated team of experts and a complete package to meet all housing finance needs, HDFC Home Loans, help people realize dream.

Vehicles loan Nowadays the life is being so fast, time value is becoming more important so to reach at the destination of any business related occasion or for a boy to reach college or any where at the fix time there are so many requirement of vehicles. But every people have no capacity to purchase vehicles with cash so for that here in the HDFC bank vehicles loan is available. There are many types of vehicles loan. Types of vehicles loan: •

Two wheeler loans.

•

New car loan.

•

Used car loan.

•

Tractor loan (for agree culture business).

•

Commercial vehicle loan.

So, as per the requirement of the person there are these types of loans are available this are at the chip rate and hassel free from more documentation and other procedure. And commercial businessman can get the benefits of the commercial vehicles loans. Thus as per the need of different people there are vehicle loans available. And also terms and condition are different as per the requirement.

Express loan plus Bank offer Express Loans Plus at person Doorstep to help fulfill all his/her needs. The procedure is simple, documentation is minimal and approval is quick. It is

helpful to person in repairing of house, School admission or also in the family holiday.

Gold loan With HDFC Bank's Gold Loan, person can get an instant loan against gold jewellery and ornaments. The procedure is simple, documentation is minimal and approval is quick. A person can get 70% loan on the value of the gold jewellery and ornaments. There is also availability of the overdraft on the gold jewellery. With this a customer can get free additional services like free personalized cheque book, free international debit card, and free net banking phone banking services.

Educational loan Nowadays important of education becoming very high. As it important becoming high it is becoming costly. So in the higher education some time people can not effort a high price at a same time. So, there is education loan is also available for the student. A person can get loan up to 10 lacs to study in India and 20 lacs if he wants to study in abroad. Loan available up to tenure of 7 years including moratorium period. Loans disbursed directly to the educational institution. It is released as per fee schedules of institutes. Exclusive Telegraphic Transfer facility available for courses abroad. Loans available for short duration/ job oriented courses also.

Loan against security With HDFC Bank's Loan against Securities, person can get an overdraft against securities like Equity Shares, Mutual Fund Units(Equity, Debt, FMPs), Gold 40

Exchange Traded Fund(ETF), NABARD's Bhavishya Nirman Bonds, Policies issued by LIC & Select Private Insurance Companies, NSC, KVP, UTI Bonds (ARS & US64 Bonds) and Gold Deposit Certificates, while still retaining ownership. And the best part is that he can continue to enjoy all his shareholder benefits such as rights, dividends and bonuses Loan available to NRIs against Shares, Mutual Funds (equity, Debt, FMPs), US64 Bonds, Insurance Policies, NSC, and KVP.

Loan against property

HDFC Bank brings Loan Against Property (LAP). Person can now take a loan against residential or commercial property, to expand his business, plan a dream wedding, and fund his child's education and much more. He can depend on bank to meet all his business requirements even to purchase a new shop or office for business. Loan to purchase Commercial Property (LCP) is a specially designed product to help person expand his business without reducing the capital from his business. These are loans services providing by HDFC bank which are very hassle free and really benefits for most of customer and most of customer are satisfied by the loan services providing by the bank.

CARD SERVICES In today’s competitive and fast time card services providing by the banks are really very important to every person and every business needs or to take meal in to the hotel or to purchase jewellery from the jewellery shops cards are playing good role in the banking sectors.

Bank ranges of Cards help to meet financial objectives. So whether persons are looking to add to his buying power, conducting cashless shopping, or budgeting his expenditure, he will find a card that suits him.

Credit cards A person wants many things like, a trip to Bali, a diamond ring for wife's dreams. Some dreams can't wait. If there's something person has always wanted. If a person wanted fulfills his wants he can get benefits from the HDFC bank’s credit cards facilities. Different types of credit •

Classic cards

•

Silver Credit Card.

•

Value plus Credit Card.

•

Health Plus Credit Card.

•

Premium Cards:

•

Gold Credit Card

•

Titanium Credit Card

•

Woman's Gold Card

•

Platinum Plus Credit Card

•

Visa Signature Credit Card

•

World MasterCard

•

Commercial Cards

•

Corporate Credit Card

Debit card HDFC Bank Debit Cards give person complete and instant access to the money in his accounts without the risk or hassle of carrying cash. 42

Types of debit card: •

Classic card

•

Easy shop international Debit card.

•

Premium card

•

Easy shop gold Debit card.

•

Specialized card

•

Easy Shop International Business Debit Card .

•

Easy Shop Woman's Advantage Debit Card.

•

Easy Shop NRO Debit Card.

•

Kisan Card.

Prepaid card Besides offering convenience, Prepaid Cards have been tailored to answer travel and gifting needs. •

ForexPlus Cards

•

Prepaid Travel Card.

•

Gift Plus Cards

•

Prepaid Gift Card.

•

Food Plus Cards

•

Prepaid Food Plus card.

•

Money Plus Card

•

The Corporate Payment card

INVESMENT AND INSURANCE Nowadays a ward investment is becoming more popular. Person invest their money in to various schemes or in to the gold or share market etc. but some time he is in to the difficult situation, for that bank help person invest wisely through financial and investment services. Types of investment: -

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

Insurance Traditional Plans

Unit Linked Plans

HDFC children's PLAN.

HDFC Unit Linked Young Star Plus II.

HDFC Money Back Plan.

HDFC Unit Linked Young Star Suvidha. HDFC Unit Linked Young Star Suvidha

HDFC Savings Assurance Plan.

Plus

HDFC Assurance Plan.

HDFC Unit Linked Pension.

HDFC Term Assurance Plan.

HDFC Unit Linked Pension Plus.

HDFC Loan Cover Term Assurance Plan.

HDFC Unit Linked Endowment Plus II. HDFC Unit Linked Endowment

HDFC Endowment Assurance Plan.

Suvidha.

HDFC Single Premium Whole of Life

HDFC Unit Linked Endowment Suvidha

Insurance

HDFC Unit Linked Enhanced Life Protection 44

GENERAL AND HEALTH INSURANCE Complete protection for business, health, travel & more.

Bonds A secure investment avenue giving stable returns with tax benefits.

Financial Planning Start Now Plan investments to meet financial goals

Knowledge Centre Profit from research and make informed investment decisions.

Equities & Derivatives Leverage bank’s vast information repository and transact online.

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

FOREX AND TRADE SERVICE Nowadays businesses becoming worldwide e.g. India to America but main problems are about monitory transaction because at every country the currency become changed so for that banks are playing a very important for the businesses. If people need to deal in foreign currency and keep tabs on exchange rates every now and then, transfer monies to India, make payments etc., HDFC Bank has a range of products and services that people can choose from to transact smoothly, efficiently and in a timely manner. Bank offering following Foreign Exchange Products and Services. Foreign Exchange and Trade Services The following are different methods of transacting in Foreign Exchange and remitting money: •

Travelers Cheques.

•

Foreign Currency Cash.

•

Foreign Currency Drafts.

•

Cheque Deposits.

•

Remittances.

•

Cash to Master.

•

Trade Services.

•

Forex Services Branch Locator.

Important guidelines and schedules.

All Foreign Exchange transactions are conducted by strictly adhering to RBI guidelines. Depending on the nature of transaction or point of travel, people will need to understand his Foreign Exchange limits.

PAYMENT SERVICE Nowadays life of a person become very stressful and he/she becoming busy with their own business, but they have to payment for something so for that reason bank’s payment services become started. With HDFC Bank's payment services, person can bid goodbye to queues and paper work. Bank’s range of payment options make it easy for pay for a variety of utilities and services.

Verified By Visa Do you want to be worry free for your online purchases. Now you can shop securely online with your existing Visa Debit/Credit card.

Net Safe Now shop online without revealing your HDFC Bank Credit Card number. What more, you can now use your HDFC Bank Debit Card also for online purchases.

Merchant Services Accept all Visa, MasterCard, credit and Debit cards at your outlets through state of the art POS Machines or through your website and experience hassle free payment acceptance. 47

Prepaid Mobile Refill If you are an HDFC Bank Account holder, you can now recharge your Prepaid Mobile Phone with this service.

Bill Pay Pay your telephone, electricity and mobile phone bills at your convenience. Through the Internet, ATMs, your mobile phone and telephone - with Bill Pay, our comprehensive bill payments solution.

Visa Bill Pay Pay your utility bills from the comfort of your home! Pay using your HDFC Bank Visa credit card and forget long queue and late payments forever

Pay Now Use your HDFC Bank Credit Card to pay your utility bills online, make subscriptions and donations; no registration required. Enjoy credit free period and reward points as per your credit card features.

Insta Pay Pay your bills, make donations and subscribe to magazines without going through the hassles of any registration.

Direct Pay Shop or Pay bills online without cash or card. Debit your account directly with our Direct Pay service!

Visa Money Transfer Transfer funds to any Visa Card (debit or credit) within India at your own convenience through HDFC Bank's Net Banking facility.

e-Monies National Electronic Funds Transfer Transfer funds from your account to other Bank accounts across India - FREE of cost.

Online Payment of Excise & Service Tax Make your Excise and Service Tax payments at your own convenience through HDFC Bank's Net Banking facility. Religious Offerings Now donate to your favorite temple easily and securely using HDFC BANK's Net Banking.

IMPERIA/PREFERRED/CLASSIC BANKING As a special customer bank providing a TAJ to customer with name imperia/preferred customer. For that bank provide a special service to their customer. HDFC Bank's preferred/imperia Programme is the royal decree that enhances the exclusivity that you are accustomed to. It makes you feel special at every step, pampering with services those others can only dream about. This service goes beyond the obvious, rises above the expected, so that the whole 49

world can see, that even today, the grandeur and magnificence of royalty is alive and well. Thus as retail banking service bank providing really good and beneficial services to their customer and as family member they are providing good services to every customer either they are came business related or anything. So for this reason HDFC bank playing a good role in the customer’s life for their monitory transaction.

NRI BANKING With a view to attract the savings and other remittance into India through banking channels from the person of Indian Nationality / Origin who are residing abroad and bolster the balance of payment position, the Government of India introduced in 1970 Non-Resident(External) Account Rules which are governed by the Exchange Control Regulations. The funds held in Non-Resident (External) Accounts (NRE Accounts) qualify for certain benefits like exemptions from taxes in India, free repatriations facilities, etc.

Deposit types NRI-Banking facilitates the NRI customer to open the following account types.

NRE (Non Resident External Accounts) It can be in the form of Savings, Current or fixed deposits in Indian rupees. The funds in this account are fully repatriable. 50

NRO (Non Resident Ordinary Accounts) It can be in the form of Savings, Current or Fixed Deposits in Indian Rupees. The funds in this account are not repatriable (only interest accrued is repatriable).

FCNR (Foreign Currency Non Resident Accounts) It can be in the form of fixed Deposits only, in the five major currencies, namely US Dollars, GBP, DM, Euro, and Japanese Yen. The funds in this account are fully repatriable.

WHOLESALE BANKING Wholesale banking is the provision of services by banks to the like of large corporate clients, mid-sized companies, real estate developers and investors, international trade finance businesses and institutional customers, such as pension funds and government entities/agencies. Also included is banking services offered to other financial institutions. In essence, wholesale banking services usually involve high value transactions. Wholesale banking compares with retail banking, which is the provision of banking services to individuals.

Corporate service Corporate Banking reflects HDFC Bank's strengths in providing our corporate clients in India, a wide array of commercial, transactional and electronic banking products. We achieve this through innovative product development and a wellintegrated approach to relationship management. •

Large Corporate

•

Supply Chain Partners

•

Agricultural Lending

Small & medium term enterprises HDFC Bank understands how much of hard work goes into establishing a successful SME. Bank also understands that business is anything but "small" and as demanding as ever. And as business expands and enters new territories and markets, person need to keep pace with the growing requests that come in, which may lead to purchasing new, or updating existing plant and equipment, or employing new staff to cope with the demand. That's why HDFC Bank has assembled products, services, resources and expert advice to help ensure that your business excels. The following links will help identify individual needs. •

Funded Services.

•

Non-Funded Services.

•

Specialized Services.

•

Value Added Services.

•

Internet Banking.

Financial Institutions & Trusts HDFC Bank provides financial services to: 52

•

Banks.

•

Financial Institutions.

•

Mutual Funds.

•

Stock Brokers.

•

Insurance Companies.

•

Commodity Businesses.

•

Trusts.

Government sector HDFC Bank acts as an active medium between the government and the customers by means of various services. These services include:

Tax Collection

wherein customers can directly pay their taxes like Direct

taxes, Indirect taxes and Sales Tax collections at their local HDFC Bank.

E-Ticketing - Helps the customer by providing him a direct access to book a Railway Ticket online and get it home delivered.

Opening of L/C's

is done by the bank on behalf of Government of India,

Mints and Presses, thus facilitating imports for the Government.

Collection of levies and taxes on behalf of Municipal Corporations i.e. Kalyan -Dombivli Municipal Corporation, is undertaken by the Bank.

Collection of stamp duty

is done via franking mode in the state's of

Maharashtra & Gujarat.

The Stamp Duty Franking Facility

is available at following branches

in Maharashtra Fort, Chembur, Lower Parel, Mira Road, Thane (Talao Pali), Panvel, Ratnagiri, Pune(FC Road), Kolhapur, Nagpur, Pimpri. The Stamp Duty Franking Facility is available at branches in Gujarat

Disbursement of Pension

to retired Employees of Central Govt and

Defence is directly done by HDFC Bank along with the disbursement of pension to the members of EPFO (Employees Provident Fund Organisation).

Electronic Collection of fees

on behalf of DGFT is done by the bank

too.

HUMAN RESOURCE DEPARTMENT

HUMAN RESOURCE DEPARTMENT “Human Resource Management function that helps managers recruit, select, train and develop members for an organization. Obviously, HRM is concerned with the people’s dimension in organizations. Work force of an Organization is one of the most important inputs of components. It is said that people are our single most important assets. Because of the unique importance of HUMAN RESOURCE and its complexity due to ever changing psychology, behavior and attitudes of men and women at work, in all business concerns, there is one common element. I.e. Human personnel function, i.e., manpower management function is becoming increasingly specialized. The personnel function or system can be broadly defined as the management of people at work- management of managers and management of workers. Personnel function is particularly interested in personnel relationship and interaction of employees-human relations. In a sense, management is personnel administration. Management is the development of people, and not mere direction of material resources. Human capital is the greatest asset of a business enterprise. The essential ingredient of management is the leadership and direction of people. Each manager of people has to be his own personnel man. Personnel management is not something you really turn over to personnel department staff.

Responsibilities of Human Resource Department. Ø HRD maintain daily attendance record through branch manager via E-mail. Ø Take decisions for approval regarding leave notes. Ø He takes the decision related to the recruitment, selection and training of the candidates. He talks to the consultant related to the recruitment of the qualified

candidates. He also does screening of the candidates, shortlist the candidate and takes the first round of the interview. Ø He maintains the database of the candidates to come for an interview. He also maintains personal file of each employee. He also completes the joining formalities of each new employee. Ø They are taking surprising visit in every branch and collect information about employees. Ø He is responsible for the monthly salary of the employees as per their attendants and passing to the Branch Manager.

Human Resource planning This is handled by doing the planning at the beginning of every year. At the end of the year, the Human Resource department from each Branch receives the requirement for the person for whole year. Then the planning of recruitment and training is done by training manager and recruiting manager which is approved from Head of HR Department.

Recruitment Recruitment is a process of searching for prospective candidates for the given job in the industry. As we know it is very important for an industrial concerns to have efficient and effective personnel with right quality and at right time and at right place available whenever they are needed. Every organization needs employee time by time because of promotion or retirement of an employee. For this purpose an organization need to search for the right candidate. And so it needs to encourage this type of right candidates whenever they require.

Sources of Recruitment Ø Personal data of candidates and data bank maintain by the HR. 57

department Ø Campus Recruitment. Ø Company’s own website. Ø Placement consultants. Ø Advertisement in the news papers like Times of India, Gujarat Samachar. Ø Employee reference.

Recruitment Process

Applicant pool

Profile Check

Shortlist

Screening

Interview

Selection Ø Selection is the process of taking individuals out of the pool of job applicants with requisite qualifications and competence to fill jobs in the organization. It is define as the process of differentiating between applicants in order to identify and hire those with a greater likelihood of success in a job. Ø Selection is based on probation base, they are taking experienced person for 6 month’s probation and for fresher the probation period is 1 year. Ø While the selection of the senior level post, is taken by head office at Mumbai.

Training and Development Ø Training aims at increasing the aptitudes, skills and abilities of workers to perform specific job. It makes employees more effective and skillful. In present dynamic world of business training is more important there is an ever present need for training men. So that new and changed techniques may be adopted. A

new and changed technique may be taken as an advantages and improvement affected in the old methods. Ø Training is learning experience that seeks relatively permanent change in an individual that will improve his/her ability to perform on the job. Ø They provide “on the job” training to their employees in the branch as they select these employees for selling various products of bank by direct marketing. Whenever they select new candidates for any post, they use to give them on the job work. Ø In case of sales persons to distribute their various products, in the beginning the person has to work under the observation of his senior then the have to go in market to have their own experience. Ø The time for training program for the candidate is depends up on the relevant position of his work area. They also provide training related to customer care and communication.

Performance Appraisal Ø An organization’s goals can be achieve only when people put in their best efforts. Performance appraisal may be understood as the assessment of an individual’s performance in a systematic way. It is define as the systematic evaluation of the individual with respect to his/her performance on the job and his/her potential for development. Ø To appraise the performance of the employee they have developed a credit system on the basis of the given target to the employee. After appraising the performance of the employee they put the grade of each employee in the following grade criteria.

Employee Remuneration and Incentive Payments Ø Remuneration is the compensation an employee receives in return for his/her contribution to the organization. Remuneration occupies an important place in the life of an employee. 59

Ø At HDFC, remuneration of an employee comprises – wages and salary, incentives. •

Wages and Salary

Ø A part from various incentives and benefits, the personnel are compensated only in terms of wages and salaries. A proper compensation in terms of this is necessary for motivation employees for their continuous improved performance. For all this, it is required that wages and salaries

are

provided

well

organization. Ø Wages and salary refers to the establishment and implementation of sound policies and practices of employee’s compensation. A wage and salary is the remuneration paid for the service of labor in production periodically to an employee. The bank is in service industry so the salary is given on monthly basis. They use to hire certain salesman on commission base and they are provided their salaries on commission base. While other permanent staff are being given monthly salaries. As HDFC bank is reputed bank in market the pay scale are as per the standard. Ø Sales executives (coax) are being given salary of 6000 to 8000 per month. While sales officer’s salary ranges from 15000 to 18000 per month. HDFC bank is also giving attractive incentives as per the target. The salary of branch manager is around 35000 per month. •

Incentive

In HDFC, employees get incentives on the basis of the target given to each employee and their area of work. They have developed the incentive structure for the employees on the basis of point system. All the employees get the incentive in the form cash reward.

Employees benefit

The employees of HDFC automatically become HDFC bank salary account Holders with special benefit and privileges and receive instant salary credit. The benefit include international debit card, corporate card with individual liability (CCIL), access to phone banking and internet banking, demat accounts, and host of other services to complement their savings account. Here are some of the features of HDFC Bank’s salary account.

Motivation Motivation is willingness to do something conditioned by this action’s ability to satisfy some need. Motivation is given by the responsible person, like branch manager or team manager for better performance in the department.

Disputes and their resolution Disputes are common in organization. In practice, disputes mainly relate to the target only because if any employee is not achieving target he/she will not eligible for incentive which creates frustration among them. Every employee is free to talk to the head of the particular department if they have any problem related to the job. Firstly, the problem is solved by the head of the particular department and if the problem does not solved by the head of that department then it is addressed to the HR Manager.

MARKETING DEPARTMENT

Marketing Management The activities of a company associated with buying and selling a product or service. It includes advertising, selling and delivering products to people. People who work in marketing departments of companies try to get the attention of target audiences by using slogans, packaging design, celebrity endorsements and general media exposure.

Ajay Kelkar, Head, Marketing, HDFC Bank, said that these initiatives are especially targeted at those consumers who are not aware about the bank's various value added services such as direct banking facilities. "We are going to demonstrate the advantages of net banking and mobile banking, as these concepts are relatively new to people living in smaller towns and cities," said Kelkar. The bank has also launched another initiative called Business Ki Baten, which is targeted at areas where the bulk of the population comprises small businessmen. Kelkar said that the bank would get experts to talk on a number of issues such as value-add tax and sales tax. Bank can measure the result of a campaign through the sales that they generate and the customers that are added. There is a clear return on investment, which from a functional point of view gives the team a stronger voice. Bank has also been able to reduce their ad spends by about 10-15 per cent and has also reduced the cost of acquisition Bank's focus in future would be to enhance its database marketing initiatives. Bank plan to invest close to Rs 12 crore to create the environment that is required to support customer intelligence that leads to data based marketing. HDFC has chartered an extensive Customer Lifecycle based marketing campaign calendar for this and the forthcoming fiscal. Fractal, which specialises in predicting the behavior of the customers in the areas of risk and marketing, would be 63

partnering HDFC Bank's marketing team in various initiatives of growing the retail business quickly and cost effectively. HDFC has been using analytics for taking informed marketing decisions. Fractal will help the bank use information to reach new customers and to build, nurture and maximize lasting customer relationships. Fractal will also help the bank solve the problem of ever-increasing customer acquisition costs and reducing customer loyalty. The marketing programmes would involve acquisition of customers profitably by reducing campaign costs, cross selling various asset and liability products to the existing customers, thereby, leveraging the existing relationships and proactively retaining existing customers. Fractal's analytics-based marketing solutions span which the entire lifecycle of customer

relationship right from

customer acquisition to customer retention to customer value management, is expected to give HDFC an upper hand in understanding the needs and circumstances

their

customers.

Marketing Initiatives Taking By The Bank

HDFC Bank is possibly the only bank in India, and one of the very few in Asia, to have embarked on a data-led marketing analytics campaigns initiative, using marketing automation technology provided by Unica. Unica has been recognised by Gartner as the leading player in this field. Through this tool, we have been able to intelligently use the 4-5 terabytes of customer data available in its warehouse. We have set up a team to conduct marketing campaigns in a scientific manner using customer data, usage patterns, preferences, lifecycle, etc, the bank also conducts event-based marketing These initiatives also complement our media-based marketing as well as on-theground marketing activities, which remain important in the bigger scheme of things. However, the marketing analytics initiative enables us to measure the efficacy of the campaigns, testing every campaign every step of the way, experimenting with 64

creatives, messages, media, etc. There are learnings that can immediately be absorbed and incorporated in the next campaigns, and these campaigns in a way provide us with information about customer choices and preferences that can be used for mass media communication, making those more effective

Media Vehicles Used For Send Message To Reach Target Audience HDFC Bank has been predominantly using direct mailers, e-mails, and SMS for communicating our message to our target audience as they are the most costeffective routes of addressing our core target audiences with maximum degree of customization

possible

Market Segmentation Market Segmentation is defined as the process of splitting customers, or potential customers, in a market into different groups, or segments, within which the customers share a similar level of interest in the same or comparable sets of needs satisfied by a distinct marketing proposition; it is also explained as a marketing technique that targets a group of customers with specific characteristics, i.e. a particular group that has its own distinct customer profile and buyer characteristics so that for marketing purposes, it can be targeted separately from other segments of the market. It is a key ingredient for successful marketing as it simplifies the targeting, positioning and the planning process. A true Market Segment meets all of the following criteria: it is distinct from other segments (heterogeneity across segments), it is homogenous within the segments (exhibits common attributes), it responds similarly to a market stimulus and it can be reached by a market intervention. Market Segmentation simplifies the firm’s product, pricing, promotion and distribution strategies and also facilitates planning 65

and organizing function of management more easily and cost effectively; but it requires a thorough understanding of the customers needs. It is referred as a tool for defining markets and thereby allocating resources; it uses statistical techniques called factor analysis and cluster analysis to combine attitudinal and demographic data to develop segments that are easier to target. Market Segmentation can be done on the basis of the location (Geographic Segmentation); on the basis of age, income, gender and other measurable factors (Demographic Segmentation); on the basis of lifestyle, likes, dislikes, taste and preferences (Psychological Segmentation); and according to the history, loyalty and responsiveness (Behavioral Segmentation). A business must analyze the different needs of the market segments; their internal strengths and weaknesses; external opportunities and threats; and various others factors like the mission, vision, values, beliefs, attitudes, norms and standards of the organization; as well as the competitors strategy, social and cultural factors, economic

environment,

global

perspective,

demographic

environment,

technological and political / legal aspects before deciding their own niche.

Philip Kotler mentioned five criteria for an effective segmentation which states that Segmentation should be: 1.

Measurable: - it should be possible to determine the values of the variable

used for the segmentation. 2.

Relevant: - it should justify the expected profits and the growth potential.

Accessible: - the target customers must be reachable and servable for the

organization. 4.

Distinguishable: - the target audiences must be diverse and able to show

different reactions to different marketing mix.

Feasible:

- the firm must have an ability to draw an effective marketing

program for its customers. Market segmentation is an effort to increase a company’s precision marketing. A market segment consists of large identifiable group within a market with similar wants, purchasing power, buying attitudes or buying habits . As

HDFC bank

a service sector industry they introduce different schemes for different people. Each person is different in nature and each have differ criteria for investment like risk factor, return, liquidity, tax benefits etc.

Target Marketing “Market Specialization is a business term meaning the market segment to which a particular good or service is marketed. It is mainly defined by age, gender, geography, socio-economic grouping, or any other combination of demographics. It is generally studied and mapped by the organization through list and reports containing demographic information that may have an effect on the marketing of key products / services. A product focusing on a specific target market contrasts sharply with one, following the market strategy of mass marketing”. Targeting can be done by the firms by adopting a logical and systematic methodology / steps. Which are as follows: STEP 1: - Identify the potential buyers: - Through proper market research and market segmentation (it is the process of pulling apart the entire market as a whole and separating it into manageable disparate units based on various demographic, political, economic and social factors; it can also be customer / product / competition related segmentation).

STEP 2: - Select the target audiences: - The factors that influence Targeting are the Internal and External Environment. Internal environment includes the mission, vision, values and objectives of the firm; whereas; External factors are the social, cultural, economic, global, demographic, natural, task, technological, political and legal environment. Through appropriately compiling the customers profile to decide the 4 P’s – Product, Price, Place and Promotion and obtain the demographic, psychological, geographic and behavioral information of the buyer. Targeting is deciding the potential buyers, products to be offered and appropriately positioning each product to the segment. STEP 3: - Proper positioning of the Product: - After developing an appropriate segmentation and target strategy; positioning strategy can be worked out effectively. Positioning enables the firm to create a positive image, gain competitive advantage and place the brand in the customers mind to enhance their goodwill and become the most preferred brand. Positioning can be in the form of product, price, promotion, service, distribution channel, image, people, advertising, publicity, public relation or selling differentiation.

Positioning Strategy “Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the target market’s mind. Positioning starts with a product. A piece of merchandise, a service, a company, an institution, or even a person. But positioning is not what you do to a product. Positioning is what you do the mind of the prospect. That is, you position the product in the mind of prospect. A company’s differentiating and positioning strategy must change as the product, market, and competitors change over time. Once the company has developed a clear positioning strategy, it must communicate that positioning effectively. 68

HDFC bank have positioning strategy of

“Continuing a Tradition of Trust”.

It is

accurate positioning strategy because it signifies a trust with its clients. Here is special Relationship Manager dedicated towards customer service and satisfaction and give them guidance about various schemes which helps them to get right scheme which suit their needs. In this way it continues to maintain a trust with its clients.

FINANCIAL DEPARTMENT

INTRODUCTION OF FINANCE DEPARTMENT In this modern era it is very easy to know how much important the finance is in the business. As current position of the market is totally different from ancient where it was very easy to get the finance. But now a days it is not so, it is very difficult task to raise funds from market. As today people are facing lot of problem and have less confidence on the market so it is difficult to raise fund without proper planning. For the bank as it is a Financial Institution we can consider finance as lifeblood of this business.

The company should manage to get sufficient finance.

The

company should use to keep proper planning for the finance of its own and also of the large no. of depositors who are there with the bank. We can define financial management as a task of acquisition and utilization of funds needed in the business in a manner so that organizations goal can be achieved. In HDFC Bank, its chief Financial Officer and Treasurer manage the finance.

Due to proper

policies and separate management the company can have proper operation of finance.

ORGANIZATION OF FINANCIAL ACTIVITIES OF BANK For the bank finance itself is the product now it is not an easy task to manage this finance. As bank has to keep watch on the deposits of its millions of customers and also it has to manage its own large financial base. As in recent it is popular “No finance no business”, for the bank “Finance itself is business”. There are different types of organizational structure such as group organization, line organization, line and staff organization. HDFC Bank has line of authority and line of authority is vertical i.e. authority passes from top to bottom and responsibility passes from bottom to top level management. As HDFC Bank is very big company and it has large cliental base so it is very difficult and complicated to manage its finance in proper way. There we need of 71

concrete and proper policies to have proper management of it. Because of big size of the bank one cannot manage all the accounts of it alone. So, company has to appoint many different persons so that there is proper maintenance of the funds of different persons is possible.

FINANCIAL HIGHLIGHTS Rs. Lacs

Particulars

2008 - 09

2009 – 10

Interest Income

16,332,26

16,172,90

Interest Expense

8,911,10

7.786,30

Net Interest Income

7,421,16

8,386,60

Other Income

3,290,60

3,807,61

Net Revenues

10,711,76

12,194,21

Operating costs

5,532,81

5,764,48

Operating Result

5,178,95

6,429,73

Provisions and Contingencies

1,879,71

2,140,59

Loan Loss Provisions

1,726,28

1,938,93

153,43

201,66

Profit before tax

3,299,24

4,289,14

Provision for taxation

1,054,31

1,340,44

Profit after tax

2,244,93

2,948,70

142,811,58

167,404,44

6,477,80

6,353,10

14,646,33

21,519,58

183,270,77

222,458,57

Loans

98,883,05

125,830,59

Investments

58,817,55

58,607,62

52.85

67.60

Others

Funds : Deposits Subordinated debt Stockholders’ Equity Working Funds

Key Ratios : Earnings per share (Rs) 72

Return on Average Net worth

16.12 %

16.80 %

Tier 1 Capital Ratio

10.58 %

13.26 %

Total Capital Ratio

15.69 %

17.44 %

10.00

12.00 **

22.17 %

21.72 %

Book value per share as at March 31 (Rs)

344.31

470.12

Market price per share as at March 31 (Rs)*

973.40

1933.50

18.42

28.62

Dividend per share (Rs) Dividend payout ratio

Price to Earnings Ratio Rs. 10 Lac = Rs. 1 Million Rs. 1 Crore = Rs. 10 Million **Proposed *Source: NSE

Auditor's Report on Financial Statements

Consolidated

To The Board of Directors, HDFC Bank Limited We have examined the attached Consolidated Balance Sheet of HDFC Bank Limited (“the Bank”) and its subsidiaries and associates (the Bank and its subsidiaries and associates constitute “the Group”) as at 31 March 2010 and also the Consolidated Profit and Loss Account and the Consolidated Cash Flow Statement for the year ended on that date annexed thereto. These consolidated financial statements are the responsibility of the Bank’s management and have been prepared by the management on the basis of separate financial statements and other financial information regarding components. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the 73

management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. We did not audit the financial statements of one of the subsidiaries, whose financial statements reflect total assets of Rs. 3,371,474 Thousands as at 31 March 2010, total revenue of Rs. 2,353,099 Thousands and net cash inflows amounting to Rs. 618,656 Thousands for the year then ended. These financial statements and other financial information have been audited by other auditors whose report has been furnished to us, and our opinion is based solely on the report of the other auditor. We have also relied on the unaudited financial statements of certain associates provided by the management and included in the consolidated financial statements. These unaudited financial statements reflect the Group’s share of net profit of Rs. 32,740 Thousands for the year then ended. We report that the Consolidated financial statements have been prepared by the Bank’s management in accordance with the requirements of Accounting Standard (AS) 21, Consolidated Financial Statements and Accounting Standard (AS) 23, Accounting for Investments in Associates in Consolidated Financial Statements issued by the Institute of Chartered Accountants of India. Based on our audit and on consideration of the report of other auditor on separate financial statements and on the consideration of the unaudited financial statements of the associates and on the other financial information of the components, and to the best of our information and according to the explanation given to us, we are of the opinion that the attached consolidated financial statements give a true and fair view in conformity with the accounting principles generally accepted in India; (i) in the case of the consolidated balance sheet, of the state of affairs of the group as at 31 March 2010; (ii) in the case of the consolidated profit and loss account, of the profits of the group for the year ended on that 74

date; and (iii) in the case of the consolidated cash flow statement, of the cash flows for the group for the year ended on that date.

The consolidated financial statements present the accounts of HDFC Bank Ltd. with its following subsidiaries and associates : Relation

Country of Incorporation

Ownership Interest (%)

HDFC Securities Ltd.

Subsidiary

India

59.0

HDB Financial Services Ltd.

Subsidiary

India

95.3

Atlas Documentary Facilitators Company Private Ltd.

Associate

India

29.0

SolutionNET India Private. Ltd.*

Associate

India

Nil

Softcell Technologies Ltd.

Associate

India

12.0

International Asset Reconstruction Company Private Ltd.

Associate

India

29.4

Centillion Solutions and Services Private Ltd.

Associate

India

29.9

HBL Global Private Ltd.

Associate

India

Nil

Name

The audited financial statements of the subsidiary companies and the un-audited financial statements of associate companies have been drawn up to the same reporting date as that of the Bank, i.e. March 31, 2010. * SolutionNET India Private Ltd. ceased to be an associate with effect from May 5, 2009.

Consolidated Balance Sheet As at March 31, 2010

Consolidated Profit and Loss Account As at March 31, 2010 77

Consolidated Cash Flow Statement As at March 31, 2010 78

Consolidated Cash Flow Statement As at March 31, 2010 79

NOTES TO ACCOUNTS 80

NOTES ON PRINCIPAL ACCOUNTING POLICIES FORMING

PART

THE

CONSOLIDATED

FINANCIAL STATEMENTS A. Principles of Consolidation: The consolidated financial statements comprise the financial statements of HDFC Bank Ltd. (the Bank), its subsidiaries and associates, which together constitute the ‘Group’. The Bank consolidates its subsidiaries in accordance with AS-21, Consolidated Financial Statements, issued by the Institute of Chartered Accountants of India on a line-by-line basis by adding together the like items of assets, liabilities, income and expenditure. Capital reserve on consolidation represents the difference between the Bank’s share in the net worth of the subsidiary and the cost of acquisition at the time of making the investment in the subsidiary. Further, the Bank accounts for investments in associates in accordance with AS-23, Accounting for Investments in Associates in Consolidated Financial Statements, issued by the Institute of Chartered Accountants of India, by the equity method of accounting.

B. Repo and Reverse Repo Transactions: In a repo transaction, the bank borrows monies against pledge of securities. The book value of the securities pledged is credited to the investment account. Borrowing costs on repo transactions are accounted for as interest expense. In respect of repo transactions outstanding at the balance sheet date, the difference between the sale price and book value, if the former is lower than the latter, is provided as a loss in the income statement. In a reverse repo transaction, the bank lends monies against incoming pledge of securities. The securities purchased are debited to the investment account at the 88

market price on the date of the transaction. Revenues thereon are accounted as interest income. In respect of repo transactions under Liquidity Adjustment Facility with RBI (LAF), monies borrowed from RBI are credited to investment account and reversed on maturity of the transaction. Costs thereon are accounted for as interest expense. In respect of reverse repo transactions under LAF, monies paid to RBI are debited to investment account and reversed on maturity of the transaction. Revenues thereon are accounted as interest income.

HDFC Securities Ltd. All investments of long-term nature are valued at cost. Provision is made to recognise a diminution, other than temporary, in the value of long-term investments. Current investments are valued at cost or market value, whichever is lower.

HDB Financial Services Ltd. Investments which are long term in nature are stated at cost. Provisions are made only in case of permanent diminution in the value of investment. Current investments are valued at lower of cost and net realizable value.

C. Compensated Absences The Company does not have a policy of encashment of unavailed leaves for its employees. The Company provides for compensated absences in accordance with AS-15 (revised 2005) Employee Benefits. The provision is based on an independent external actuarial valuation at the balance sheet date.

D. Geographic Segments Since the Group does not have material earnings emanating outside India, the Group is considered to operate in only the domestic segment (India).

E. Merger of the Centurion Bank of Punjab Limited During the year ended March 31, 2009 the Centurion Bank of Punjab got merged with HDFC Bank Ltd. The Scheme of Amalgamation (‘the Scheme’) of Centurion Bank of Punjab Limited (‘CBoP’ or ‘eCBoP’) with HDFC Bank Ltd. (‘HDFC Bank’ or ‘the Bank’) under section 44 A (4) of the Banking Regulation Act, 1949 which was approved by the shareholders of both the banks on March 27, 2008 was sanctioned by the RBI vide their order DBOD No. PSBD. 16197/16.01.131/2007- 08 dated May 20, 2008, and was effective from May 23, 2008. The appointed date of the merger was April 1, 2008. Both the entities were banking companies incorporated under the Companies Act, 1956 and licensed by the RBI under the Banking Regulation Act, 1949. As per the Scheme, upon its coming into effect from the appointed date i.e. April 1, 2008, the entire undertaking of CBoP including all its assets and liabilities stood transferred / deemed to be transferred to and vest in HDFC Bank. As per the Scheme, in consideration of the transfer of and vesting of the undertaking of CBoP, one equity share of HDFC Bank of the face value of Rs. 10/- each fully paid-up was issued to members of the eCBoP for every twenty nine equity shares of the face value of Re. 1/- each of CBoP held by them on the record date i.e. June 16, 2008. Accordingly 6,98,83,956 equity shares of Rs. 10/- each of HDFC Bank were allotted at par to the shareholders of CBoP vide board resolution dated June 24, 2008. The excess of the value of net assets transferred over the paid up value of shares issued in consideration have been adjusted in Amalgamation Reserve as per the Scheme of Amalgamation. 90

The amalgamation has been accounted using the pooling of interest method. Accordingly, the assets and liabilities of CBoP that vested in HDFC Bank as on April 1, 2008 were accounted at the values at which they were appearing in the books of CBoP as on March 31, 2008 and provisions arising out of harmonization of accounting policies and estimates, as approved by the Board of Directors of HDFC Bank and as prescribed in the Scheme, were made for the difference between the net value appearing in the books of CBoP and the value as determined by HDFC Bank. Also the Bank provided for merger related expenses on a best estimate basis. Such adjustments, as per the Scheme, were made by the Bank against the reserves arising on amalgamation. After accounting the assets, liabilities and reserves of CBoP and after effecting the above adjustments, a surplus of Rs. 1,049,03 lacs arose, which was credited to Amalgamation Reserve in accordance with the Scheme. (Rs. lacs) Amoun

Particulars

Net Assets of eCBoP as on the reporting date of merger* Less : 6,98,83,956 equity shares of face value of Rs. 10 each Less : Statutory Reserves taken over on amalgamation Excess of net assets over the paid-up value of shares issued and Statutory Reserve Less : Harmonization of accounting policies and estimates Less : Expenses related to merger

Amount 2,089,85

(69,88) (218,15 )

(288,03) 1,801,82 (690,62) (62,17)

Amalgamation Reserve

1,049,03

*Net assets taken over on April 1, 2008 adjusted for options allotted by eCBoP between April 1, 2008 till May 22, 2008. 91

As per AS-14, Accounting for Amalgamation, if the amalgamation is an “amalgamation in the nature of merger”, the identity of reserves of the amalgamating entity is required to be preserved in the books of HDFC Bank. However the balances in Profit and Loss Account (Rs. 246,49 lacs), Securities Premium Account (Rs. 1,354,60 lacs), Capital Reserve (Rs. 65 lacs) and Investment Reserve Account (Rs. 7,02 lacs) have been credited to Amalgamation Reserve in accordance with the scheme. As a result the balances in these accounts are lower by the aforesaid amounts.

F. Earnings Per Equity Share Basic and Diluted earnings per equity share have been calculated based on the net profit after taxation of Rs. 3,003,65 lacs (previous year : Rs. 2,248,99 lacs) and the weighted average number of equity shares outstanding during the year amounting to 436,439,573 (previous year : 424,754,825).

G. Related Party Disclosures As per AS-18, Related Party Disclosure, issued by the Institute of Chartered Accountants of India, the Bank’s related parties are disclosed below : Promoter Housing Development Finance Corporation Ltd. Enterprises under common control of the promoter HDFC Asset Management Company Ltd. HDFC Standard Life Insurance Company Ltd. HDFC Developers Ltd. HDFC Holdings Ltd. HDFC Investments Ltd. HDFC Trustee Company Ltd. 92

GRUH Finance Ltd. HDFC Realty Ltd. HDFC Ergo General Insurance Company Ltd. HDFC Venture Capital Ltd. HDFC Ventures Trustee Company Ltd. HDFC Sales Pvt. Ltd. HDFC Property Ventures Ltd. HDFC Asset Management Company (Singapore) Pte. Ltd. Griha Investments Associates SolutionNET India Pvt. Ltd. (ceased to be an associate from May 5, 2009) Softcell Technologies Ltd. Atlas Documentary Facilitators Company Pvt. Ltd. HBL Global Pvt. Ltd. Centillion Solutions and Services Pvt. Ltd. Kairoleaf Analytics Pvt. Ltd. (ceased to be an associate from March 30, 2009) International Asset Reconstruction Company Pvt. Ltd. Key Management Personnel Aditya Puri, Managing Director Paresh Sukthankar, Director Harish Engineer, Director Related Party to Key Management Personnel Salisbury Investments Pvt. Ltd. Sudha Engineer

H. Small and Micro Industries HDFC Bank Ltd.

Under the Micro, Small and Medium Enterprises Development Act, 2006 which came into force from October 2, 2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises. There have been no reported cases of delays in payments to micro and small enterprises or of interest payments due to delays in such payments. HDFC Securities Ltd. On the basis of the intimations received from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 there are five (previous year : nine) suppliers registered under the said Act, and there are no amounts unpaid to these suppliers as at the year end. HDB Financial Services Ltd. The Company has received intimation from a supplier regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and amount unpaid as at March 31, 2010 is Rs. 0.3 lacs (previous year : Rs. 36 lacs).

NOTES ON CORPORATE GOVERNANCE Compensation Committee The Compensation Committee reviews the overall compensation structure and policies of the Bank with a view to attract, retain and motivate employees, considers grant of stock options to employees and reviews compensation levels of the Bank’s employees vis-à-vis other banks and industry in general. The Bank’s compensation policy provides a fair and consistent basis for motivating and rewarding employees appropriately according to their job role / size, performance, contribution, skill and competence. Mr. Jagdish Capoor, Mr. Ashim Samanta, Mr. Gautam Divan and Dr. Pandit Palande are the members of the Committee. The Committee is chaired by Mr. Jagdish Capoor. All the members of the Committee other than Mr. Capoor are independent directors. The Committee met 6 (Six) times during the year.

Investor Grievance (Share) Committee The Committee approves and monitors transfer, transmission, splitting and consolidation of shares. Allotment of shares to the employees on exercise of stock options granted under the various Employees Stock Option Schemes which are made in terms of the powers delegated by the Board in this regard, are placed before the Committee for ratification. The Committee also monitors redressal of complaints from shareholders relating to transfer of shares, non-receipt of Annual Report, dividends, etc.

The Committee consists of Mr. Jagdish Capoor, Mr. Aditya Puri and Mr. Gautam Divan. The Committee is chaired by Mr. Capoor. The powers to approve share transfers and dematerialisation requests have been delegated to executives of the Bank to avoid delays that may arise due to non-availability of the members of the Committee. As on March 31, 2010, 78 instruments of transfer representing 4346 shares were pending and since then the same have been processed. The details of the transfers are reported to the Board of Directors from time to time. During the year under review 1888 complaints were received from the shareholders. All the complaints were attended to and as on 31st March 2010 no complaints remained unattended. Besides 10,907 letters were received from the shareholders relating to change of address, nomination requests, ECS / NECS Mandates, queries relating to annual reports and amalgamation, requests for revalidation of dividend and fractional warrants and other investor related matters. These letters have also been responded to. The Committee met 15 (fifteen) times during the year. Risk Monitoring Committee The Committee has been formed as per the guidelines of Reserve Bank of India on Asset Liability Management / Risk Management Systems. The Committee develops Bank’s credit and market risk policies and procedures, verifies adherence to various risk parameters and prudential limits for treasury operations and reviews its risk monitoring system. The Committee also ensures that the Bank’s credit exposure to any one group or industry does not exceed the internally set limits and that the risk is prudentially diversified. The Committee consists of Mrs. Renu Karnad, Mr. Aditya Puri, Mr. C. M. Vasudev and Mr. Paresh Sukthankar. The Committee is chaired by Mrs. Renu Karnad. 96

The Committee met 6 (six) times during the year.

COMPLIANCE WITH NON-MANDATORY REQUIREMENTS a) Board of Directors The Bank maintains the expenses relating to the office of non-executive Chairman of the Bank and reimburses all the expenses incurred in performance of his duties. Pursuant to Section 10(2A) of the Banking Regulation Act, 1949, all the directors, other than the Chairman and/or whole-time director, cannot hold office continuously for a period exceeding 8 (eight) years. b) Remuneration Committee The Bank has set-up a Compensation Committee of Directors to determine the Bank’s policy on remuneration packages for all employees. The Committee comprises majority of independent directors. Mr. Jagdish Capoor is the Chairman of the Committee and is not an independent Director. e) Training of Board Members The Bank’s Board of Directors consists of professionals with expertise in their respective fields and industry. They endeavor to keep themselves updated with changes in global economy and legislation. They attend various workshops and seminars to keep themselves abreast with the changes in the business environment. f) Mechanism for evaluating non-executive Board Members

The Nomination Committee evaluates the non-executive Board members every year. The performance evaluation of the members of the Nomination Committee is done by the Board of Directors excluding the Directors being evaluated.

g) Whistle Blower Policy The Bank has adopted a Whistle Blower Policy pursuant to which employees of the Bank can raise their concerns relating to fraud, malpractice or any other activity or event which is against the interest of the Bank or society as a whole. The Audit and Compliance Committee of the Bank has reviewed the functioning of the Whistle Blower mechanism. None of the personnel has been denied access to the Audit and Compliance Committee.

CATEGORIES OF SHAREHOLDERS AS AT MARCH 31, 2010 Sr. No. Category 1 2 3 4

Promoters * J P Morgan Chase Bank ( Depository for ADS ) Deutsche Bank Trust Company Americas ( Depository for GDR ) Foreign Institutional Investors

No. of

% to Share

Capital

108643220

23.73

77694909

16.97

3407493

0.74

121692561

26.59

5724016

1.25

220484

0.05

Foreign Bodies / Foreign Nationals / 5

Overseas Corporate Bodies and Non Resident Indians

Financial Institutions / Banks

Insurance Companies

34892409

7.62

Mutual Funds / UTI

20004918

4.37

Indian Companies

41503470

9.07

Individuals TOTAL

43959792

9.60

457743272

100.00

* None of the equity shares held by the Promoter Group are under pledge . SHARE PRICE / CHART The monthly high and low quotation of Bank’s equity shares traded on Bombay Stock Exchange Ltd (BSE) and National Stock Exchange of India Ltd (NSE) during FY 2009-10 and its performance vis-à-vis BSE SENSEX and S&P CNX NIFTY respectively is as under:

100

MEANS OF COMMUNICATION The quarterly and half-yearly unaudited financial results are published in 'Business Standard' in English and 'Mumbai Sakal' in Marathi (regional language). The results are also displayed on the Bank’s web-site at www.hdfcbank.com. The shareholders can visit the Bank’s web-site for financial information, shareholding information, dividend policy, key shareholders’ agreements, Memorandum and Articles of Association of the Bank, etc. The web-site also gives a link to www.sec.gov where the investors can view statutory filings of the Bank with the Securities and Exchange Commission, USA. CODE FOR PREVENTION OF INSIDER TRADING The Bank has adopted a share dealing code for the prevention of insider trading in the shares of the Bank. The share dealing code, inter alia, prohibits purchase / sale of shares of the Bank by employees while in possession of unpublished price sensitive information in relation to the Bank.

101

B AL ANC E S H E E T S IZ E (R s . C rores )

222459

183271

2009

2010

AD VA NC E S (R s . C rores )

127262

98883

2009

2010

102

103

R E T AIL AS S E T S (R s .C rores )

72271

61154

2009

2010

104

D E P O S IT S (R s . C rores )

167404

142812

2009

2010

105

S AVING S D E P OS IT S (R s . C rores ) 49877 34915

2009

2010

106

R E T UR N O N C A P IT AL (% )

16.80%

16.20%

2009

2010

2949

PROFIT AFTER TAX (Rs. Crores) 2245

1590 1141 871 510 120 2000

210

2001

297

2002

666

388

2003

2004

2005

107

2006

2007

2008

2009

2010

DIVIDEND PER SHARE (Rs.) (Rs.)

10 8.5

7 5.5 3.5 2.5 1.6

2000

2001

2002

4.5

2003

2004

2005

2006

2007

2008

2009

2010

67.6

EARNING PER SHARE (Rs.) 52.9 46.2 36.3 27.9 22.9

5.9

2000

8.6

2001

2002

13.8

2003

2004

2005

108

2006

2007

2008

2009

2010

R UP E E E A R NE D 0.09% 19.93%

Interes t from advanc es P rofit on inves tment C ommis s ion, E x c hange & B rokerage O ther interes t inc ome

3.05% 0.46% 60.55%

F X & Derivative inc ome 14.17%

Interes t from inves tment O thers

1.75%

R UP E E S P E NT

31.31% Interes t ex pens e 42.30%

tax provis ions dividend & Tax on Dividend Trans fer to res erve O perating E x pens e

4.00% 3.48% 11.63%

7.28%

109

Shareholding Pattern as on 31st March, 2010

110

WHAT IS SWOT ANALYSIS? SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. The technique is credited to Albert Humphrey, who led a convention at Stanford University in the 1960s and 1970s using data from Fortune 500 companies. 111

SWOT ANALAYSIS OF HDFC BANK STRENGTHS •

HDFC is the strongest and most venerable play on Indian mortgages over the long term. The management of the bank is termed to be one of the best in the country.

•

HDFC has differentiated itself from its peers with its diversified network and revamped distribution strategy

•

HDFC has been highly proactive in passing on the cost and benefit to customers.

•

Besides the core business, HDFC’s insurance, AMC, banking, BPO, and real estate private equity businesses are also growing at a rapid pace and the estimated value of its investments/subsidiaries explains ~30% of HDFC’s market capitalization.

•

High degree of customer satisfaction.

•

Lower response time with efficient and effective service.

•

Dedicated workforce aiming at making a long-term career in the field.

•

Products have required accreditations.

•

Superior customer service vs. competitors

•

Large share of low-cost deposits, higher net interest margin

•

Better quality of assets, NPA of 0.4 per cent

•

Free float available, FIIs can buy its stock

•

Higher profitability

112

WEAKNESSES •

High dependence on individual loans.

•

Major stake held by American financial groups which are under stress due to economic slowdown.

•

Customer service staff needs training.

•

Processes and systems, etc need to be better managed

•

Management covers insufficient.

•

Sectoral growth is constrained by low unemployment levels and competition for staff

•

Marginal international presence

•

No next line of leadership

•

Not very aggressive in M&A space, growing only organically

•

Possible takeover target

OPPORTUNITIES •

Fast growing insurance business in the country.

•

Untapped rural markets.

•

Could extend to overseas broadly

•

Fast-track career development opportunities on an industry-wide basis.

•

An applied research centre to create opportunities for developing techniques to provide added-value services.

•

Unique partnership to create job opportunities for IFBI’s PGDBO students

•

HDFC bank automates business processes with Staff ware; HDFC Bank anticipates major cost savings whilst maintaining high levels of customer service thanks to new enterprise software agreement.

•

HDFC Bank plans to set up a non-banking finance company (NBFC) to undertake fund-based activities. 113

•

In recent times, India has witnessed entry of many international banks like CITI Bank, YES Bank etc which posses an external entrant threat to HDFC Bank – as this Banks are known for their art

working

and

maintain high standards of customer service. •

After showing a significant growth overall, India is able to attract many international financial & banking institutes, which are known for their state of art working and keeping low operation costs.

THREATS •

Loss of market share to commercial banks and HFC’s

•

Higher than expected increase in funding cost

•

Risk of fraud and NPA accretion due to increase in interest rates and fall in property prices is inherent to the mortgage business

•

Lack of infrastructure in rural areas could constrain investment.

•

High volume/low cost market is intensely competitive.

•

Very high competition prevailing in the industry

•

Extension overseas holds a lot of risk!

•

Threat from credit card collections dept.

•

Varying and In-Convenient ECS dates.

•

Unlike Government Banks, an account needs a minimum balance of Rs.10,000

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COMPETITIVE SWOT ANALYSIS

O P O R T U N I T I E S

STRENGTHS

WEAKNESSES

S – O Strategies

W – O Strategies

Strength: •

Weakness: •

Large Capital base.

Opportunity: •

Market Expansion.

Outsourcing of Non – Core Business.

Strategy: •

Deep Penetration into Rural

Strategy: •

Market.

Outsource Customer Care & other E-Helps.

S – T Strategies T H R E A T S

Workforce Responsiveness.

W – T Strategies

Strength: • Low operating costs

Weakness: • Not Equal to International Standards.

Threat: • Increased Competition from others Pvt. Banks. Strategy: • Steps to Ensure Loyalty by old Customers.

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Threat: • Entry of many Foreign Banks. Strategy: • Consider additional benefits

Detailed Analysis Strength - Opportunity Analysis Strength: It is well know that HDFC Bank has the largest Authorised Capital Base in the Banking System in India i.e. having a total capacity to raise Rs. 19,000,000,000 (Non – Premium Value).

Opportunity: Seeing the present financial & economic development of Indian Economy and also the

tremendous growth of the

the acquisition spree followed by market

for finance

Indian Companies including

them, it clearly states the expanding

requirements and also the growth in surplus disposal

income of Indian citizens has given a huge rise in savings deposits – from the above point it is clear that there is a huge market expansion possible in banking sector in India.

Strategy: From the analysis of Strength & Opportunity the simple and straight possible strategy for HDFC Bank could be - to penetrate into the rural sector of India for expanding its market share as well as leading all other Pvt. Banks from a great gap.

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Strength - Threat Analysis Strength: HDFC Bank is not only known for large capital but also for having a low operations cost though having huge number of

branches and services

provided.

Threat: After showing a significant growth overall, India is able to attract many international financial & banking institutes, which are known for their state of art working and keeping low operation costs.

Strategy: To ensure that HDFC Bank keeps going on with low operation cost & have continuous business it should simply promote itself well & provide quality service so as to ensure customer loyalty, therefore guaranteeing

continuous

business.

Weakness - Opportunity Analysis Weakness: It is well known that workforce responsiveness in banking sector is very low in Indian banking sector, though HDFC Bank has better responsible staff but it still lacks behind its counterparts like HSBC, CITI BANK, YES BANK etc.

Opportunity: 117

In the present world, India is preferred one of the best places for out – sourcing of business process works and many more.

Strategy: As international companies are reaping huge benefits after out-sourcing there customer care & BPO’s, this same strategy should be implemented by HDFC Bank so as to have proper customer service without hindering customer expectations.

Weakness - Threat Analysis Weakness: Though having a international presence, HDFC Bank has not been able to keep up the international standards in providing customer service as well as banking works.

Threat: In recent times, India has witnessed entry of many international banks like CITI Bank, YES Bank etc which posses an external entrant threat to HDFC Bank – as this Banks are known for their art of working and maintain high standards of customer

service.

Strategy: After having new entrants threat, HDFC Bank should come up with More additional benefits to its customer or may be even reduce some fees for any additional works of customers.

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NEWS RELEASE Electronic Religious Offering HDFC Bank ties up with Golden Temple, Amritsar for online donation Mumbai, February 8, 2010: HDFC Bank, one of the premier banks in the country signed an agreement with Shiromani Gurdwara Parbandhak Committee for offering e-collection through HDFC Bank Payment Gateway. Mr. A. Rajan, Country Head-Operations, HDFC Bank and Mr. Avtar Singh Makkar, President Shiromani Gurdwara Parbandhak Committee formally launched the payment gateway. Devotees of Golden Temple who were unable to make trip to Amritsar for any reason, can now have the satisfaction of instantaneously getting their donations reach Golden Temple through a user friendly secure website feature of HDFC Bank. There are large numbers of devotees based across the globe who can now avail this facility. The website offers a variety of payment options to the devotees to make their offerings, which includes direct debit to their accounts with the HDFC Bank, or pay by a debit card or a credit card of any Bank. Speaking on the occasion, Mr. A. Rajan, Country Head - Operations, HDFC Bank, said, “India is a spiritually enlightened country and HDFC Bank has always used technology that touches lives of our customers in all the spheres. This tie-up will enable lakhs of devotees of Golden Temple spread across the world, to conveniently send their offerings to the holy shrine using HDFC Bank’s secured net banking services. It also enables the devotees to select the specific purpose for which the donation is made."

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“We welcome this initiative by HDFC Bank as it offers devotees a convenient way of showering their gratitude”, said Mr. Avatar Singh Makkar, President, Shiromani Gurdwara Parbandhak Committee. HDFC Bank has pioneered the concept of electronic religious offering and is already offering this facility to major temples across the country. The Bank has already tied-up with 37 religious organizations including, temples, churches, gurudwaras and mosques pan India. Some of the religious organizations already availing this facility through HDFC Bank are Mata Vaishnodevi Temple, Shree Jagannath Temple, Shree Sidhivinayak Temple, Shanta Durga Temple, Shirdi Sai Baba Sansthan, Nathdawara Mandir, SomnathTemple, Guruvayuoor Temple, Rama Krishna International Mission, Shree Anantha Padmanabha Temple etc. HDFC Bank now has 147 branches in Punjab. The Bank is well poised to offer its proven technology based products to all the leading temples in Punjab to enable them reach out to their devotees. For this purpose, HDFC Bank has designed a special product for Religious institutions to make the donation process simple and easy for devotees across the world. The Bank has also designed a special collections and payment services for the Temple Administration for its daily operations.

Euromoney declares HDFC Bank ‘Best Private Banking Services overall’ in India -Also adjudged ’Best Local Bank in India’ for the 2nd year in a rowMumbai, February 17, 2010: HDFC Bank, one of India‟s premier banks, has been declared the „Best Private Banking Services overall„ in the Euromoney‟s annual global Private Banking and Wealth Management Poll - 2010. The survey also 120

recognized HDFC Bank as the „Best Local Bank in India‟ for the second consecutive year. According to Euromoney, HDFC Bank's nomination as „Best Private Banking Services‟ indicates the Bank‟s excellence in both advisory and portfolio management across a range of asset classes and investment styles. The rankings are based on qualitative and quantitative survey supported by quantitative data provided by the participating banks. The survey also includes competitors' perceptions of the best performing providers in defined client and product categories. Commenting on this recognition, Abhay Aima, Group Head – Equities, Private Banking, Third Party Products, NRI & International Consumer Business said “It is an honor for us to be conferred with these awards. At HDFC Bank, we understand the challenges in the market and strongly believe that we have the right business strategy to address the growing market needs and capitalize on opportunities to build partnerships for mutual development with our clients. The growth in private banking in India is inclusive and we are witnessing growth from Tier 2 and Tier 3 cities also.” He further added “In the process we have also outperformed all global private banks operating in India. Interestingly even in Asia, in the private bank category, we have moved up in rankings, to 10th position in the current year from 23rd in the previous year.” The survey results reflect a global trend where new regional/ national players along with a few leading international banks are now making good inroads in the global Private Banking space. Euromoney Private Banking and Wealth Management Services is the global industry benchmark for the wealth management industry and cover over 60 countries every year, as well as global and regional awards. The results are based on combinations of performance figures and nominations. The 121

year Euromoney received a total of 1800 votes, up almost 10% on last year‟s poll. Votes cast represented $6.8 trillion of assets under management.

HDFC Bank opens its 4000th ATM in the country Mumbai, February 21, 2010: HDFC Bank, one of India’s premier banks, has opened its 4000th ATM in the country at Mangalore. This is the Bank's 8th ATM in the city and 1165th in the South overall. The new ATM located at Vijaya Mahal, NH 17, Surathkal was inaugurated by Mr. K. Padmanabha, President, CAMPCO Ltd., Mangalore. With the introduction of "Faster ATMs" an HDFC Bank customer can, at any time of the day, now do cash withdrawal at any HDFC Bank ATM in 40% less time. The time thus saved is utilized for logical cross sell and targeted marketing to the customers. The customers can also do other transactions on the ATM like credit card payment, cheque status enquiry, transfer funds between accounts, viewing account balances and mini statements. Speaking on the occasion Mr. Rahul Bhagat, Country Head - Retail Liabilities, Marketing & Direct Banking Channels said, “We have always believed in using technology to enhance customer experience and the fact that over 80% of our regular customers transact at the ATM is proof that adoption of such innovations is very high. It is a matter of great satisfaction for us that we have 4,000 such ATMs in service today and will continue to expand in future."

“Best Retail Bank” The Asian Banker declares HDFC Bank the “Best Retail Bank” in India 122

Ø HDFC Bank wins for the 4th year in a row Ø More than 130 retail financial institutions participated from 22 countries across the Asia Pacific, Gulf and Central Asian regions Mumbai, March 29, 2010: HDFC Bank, one of India’s premier banks, has won The Asian Banker's ’Best Retail Bank in India’ award this year. Beating a host of other competitors in Asia Pacific, Gulf Cooperation Council (GCC) and Central Asia on a range of parameters, the Bank has won the ’Best Retail Bank in India’ award for the fourth year in a row. The Bank also emerged best in the “Automobile Lending” sector. Some of the parameters that winners were measured on: Ø Outstanding annual performance of the retail banking unit Ø Sustainability as a franchise over a long period of time and across economic cycles Ø A well-defined franchise in the chosen marketplace Ø Transparency and accountability of business model Ø Ethical banking Ø Clear sales and execution skills at the product level Ø Rigorous risk management capabilities Ø Superior business and operational processes and technology Ø Strong penetration and efficiency of distribution channels Ø Focus on developing human resources to support the bank’s strategy Announcing the Asian Banker Excellence awards 2009, the publication has observed in its communication to the company, ”HDFC Bank has passed all stringent screening and requirements throughout the Excellence in Retail Financial Services evaluation process and been granted the awards.” The Asian Banker Excellence in Retail Financial Services Programme was instituted in 2001 on the premise that an outstanding player in the retail financial

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services industry should build business franchises that are sustainable, competitive and profitable over a period of time.

- First bank ever to retail silver bars in India HDFC Bank retails silver bars this Akshaya Tritiya Mumbai, May 13, 2010: HDFC Bank, one of the premier banks in the country will retail into silver bars on the auspicious occasion of Akshaya Tritya this year. HDFC Bank is the first ever bank to sell silver bars in India after following the huge success in gold coins / bars. HDFC Bank ”Pure Silver‟ bars will be imported from Switzerland. Each bar weighing 50gms will carry a 99.99% Assay certification, signifying highest level of purity as per international industry standards. The launch provides Indian customers an easy and reliable way of buying silver, a popular investment option, without any worries about the purity of the item purchased. The bank aims to sell a total of 100 to 150 kgs of the silver bars through 80-85 of its branches spread over 21 cities. The bank is one of the leading players as far as gold is concerned. Last year it sold around 440kgs gold during Akshaya Tritya. HDFC Bank will keep its branches functional on Akshaya Tritya which falls on Sunday this year to enable its customers and the public at large purchase gold and silver on this auspicious day. Mr. Seshan Ramakrishnan, Head, Retail Liabilities Product Group, said, “We have always endeavored to provide a variety of secured investment and saving products to our customers. Silver has been traditionally the most favoured form of investment for Indians next to gold. In fact, India, even today is amongst the highest consumers of Silver in the world. Through the „Pure Silver‟ offer we hope to provide customers a convenient and reliable way of purchasing silver.” 124

BIBLIOGRAPHY BOOKS REFFERED: • Management Accounting – Chaudhary & Chopde • Principles of Banking - Bandgar • Research Methodology – C.R.Kothari

WEBSITES REFFERED: • www.wikipedia.com • www.hdfcbank.com •

www.rbi.in

•

www.nyse.com

• www.google.co.in

REPORTS/ARTICLES REFFERED: •

Annual report of HDFC BANK 2010

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