Professional Documents
Culture Documents
ON
SUBMITTED BY:
SUKHCHAIN AGGARWAL
B.A.F. 2ND
9007
CONTENTS
Sr. No
Topic
Page No.
1.
Introduction
2.
Organization
3.
24
4.
Research Methodology
26
5.
27
6.
Limitations
28
7.
Bibliography
29
CHAPTER1:
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.
PROMOTER
HDFC is India's premier housing finance company and enjoys an impeccable track record
in India as well as in international markets. Since its inception in 1977, the Corporation has
maintained a consistent and healthy growth in its operations to remain the market leader in
mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has
developed significant expertise in retail mortgage loans to different market segments and also
has a large corporate client base for its housing related credit facilities. With its experience in the
financial markets, a strong market reputation, large shareholder base and unique consumer
franchise, HDFC was ideally positioned to promote a bank in the Indian environment.
BUSINESS FOCUS
HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound
customer franchises across distinct businesses so as to be the preferred provider of banking
services for target retail and wholesale customer segments, and to achieve healthy growth in
profitability, consistent with the bank's risk appetite. The bank is committed to maintain the
highest level of ethical standards, professional integrity, corporate governance and regulatory
compliance. HDFC Bank's business philosophy is based on four core values - Operational
Excellence, Customer Focus, Product Leadership and People.
5
CAPITAL STRUCTURE
The authorized capital of HDFC Bank is Rs550 crore (Rs5.5 billion). The paid-up capital is
Rs 424.6 crore (Rs.4.2 billion). The HDFC Group holds 19.4% of the bank's equity and about
17.6% of the equity is held by the ADS Depository (in respect of the bank's American
Depository Shares (ADS) Issue). Roughly 28% of the equity is held by Foreign Institutional
Investors (FIIs) and the bank has about 570,000 shareholders. The shares are listed on the Stock
Exchange, Mumbai and the National Stock Exchange. The bank's American Depository Shares
are listed on the New York Stock Exchange (NYSE) under the symbol 'HDB'.
DISTRIBUTION NETWORK
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of
over 1229 branches spread over 444 cities across India. All branches are linked on an online realtime basis. Customers in over 120 locations are also serviced through Telephone Banking. The
Bank's expansion plans take into account the need to have a presence in all major industrial and
commercial centers where its corporate customers are located as well as the need to build a
strong retail customer base for both deposits and loan products. Being a clearing/settlement bank
to various leading stock exchanges, the Bank has branches in the centers where the NSE/BSE
has a strong and active member base.
The Bank also has a network of about over 2526 networked ATMs across these cities.
Moreover, HDFC Bank's ATM network can be accessed by all domestic and international
Visa/Master Card, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge
cardholders.
MANAGEMENT
Mr. Jagdish Capoor took over as the bank's Chairman in July 2001. Prior to this, Mr.
Capoor was a Deputy Governor of the Reserve Bank of India.
The Managing Director, Mr. Aditya Puri, has been a professional banker for over 25 years
and Before joining HDFC Bank in 1994 was heading Citibank's operations in Malaysia.
The Bank's Board of Directors is composed of eminent individuals with a wealth of experience
in public policy, administration, industry and commercial banking. Senior executives
representing HDFC are also on the Board.
Senior banking professionals with substantial experience in India and abroad head various
businesses and functions and report to the Managing Director. Given the professional expertise of
the management team and the overall focus on recruiting and retaining the best talent in the
industry, the bank believes that its people are a significant competitive strength.
TECHNOLOGY
HDFC Bank operates in a highly automated environment in terms of information technology
and communication systems. All the bank's branches have online connectivity, which enables the bank
to offer speedy funds transfer facilities to its customers. Multi-branch access is also provided to retail
customers through the branch network and Automated Teller Machines (ATMs).
The Bank has made substantial efforts and investments in acquiring the best technology
available internationally, to build the infrastructure for a world class bank. The Bank's business is
supported by scalable and robust systems which ensure that our clients always get the finest
services we offer.
The Bank has prioritized its engagement in technology and the internet as one of its key
goals and has already made significant progress in web-enabling its core businesses. In each of its
businesses, the Bank has succeeded in leveraging its market position, expertise and technology to
create a competitive advantage and build market share.
BUSINESS FOCUS
HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound
customer franchises across distinct businesses so as to be the preferred provider of banking
services for target retail and wholesale customer segments, and to achieve healthy growth in
profitability, consistent with the bank's risk appetite. The bank is committed to maintain the
highest level of ethical standards, professional integrity, corporate governance and regulatory
compliance. HDFC Bank's business philosophy is based on four core values Operational
Excellence, Customer Focus, Product Leadership and People.
RATING
I. Credit Rating
The Bank has its deposit programs rated by two rating agencies - Credit Analysis &
Research Limited (CARE) and Fitch Ratings India Private Limited. The Bank's Fixed Deposit
programme has been rated 'CARE AAA (FD)' [Triple A] by CARE, which represents instruments
considered to be "of the best quality, carrying negligible investment risk". CARE has also rated the
bank's Certificate of Deposit (CD) programme "PR 1+" which represents "superior capacity for
repayment of short term promissory obligations". Fitch Ratings India Pvt. Ltd. (100% subsidiary of
Fitch Inc.) has assigned the "tAAA (ind )" rating to the Bank's deposit programme, with the
outlook on the rating as "stable". This rating indicates "highest credit quality" where "protection
factors are very high".
The Bank also has its long term unsecured, subordinated (Tier II) Bonds rated by CARE
and Fitch Ratings India Private Limited and its Tier I perpetual Bonds and Upper Tier II Bonds
rated by CARE and CRISIL Ltd. CARE has assigned the rating of "CARE AAA" for the
subordinated Tier II Bonds while Fitch Ratings India Pvt. Ltd. has assigned the rating "AAA (ind)"
with the outlook on the rating as "stable". CARE has also assigned "CARE AAA [Triple A]" for
the Banks Perpetual bond and Upper Tier II bond issues. CRISIL has assigned the rating "AAA /
Stable" for the Bank's Perpetual Debt programme and Upper Tier II Bond issue. In each of the
cases referred to above, the ratings awarded were the highest assigned by the rating agency for
those instruments?
The products of the company are categorized into various sections which are as follows:
Accounts and deposits.
Loans.
Investments and Insurance.
Forex and payment services.
Cards.
Customer center.
2.3 PRODUCTS AND SERVICES AT A GLANCE
1. PERSONAL BANKING
A. Accounts & Deposits
- Regular Savings Account
- Savings Plus Account
- Savings Max Account
- Senior Citizens Account
- No Frills Account
- Institutional Savings Account
- Payroll Salary Account
- Classic Salary Account
- Regular Salary Account
- Premium Salary Account
- Defence Salary Account
- Kid's Advantage Account
- Pension Saving Bank Account
- Family Savings Account
- Kisan No Frills Savings Account
- Kisan Club Savings Account
- Plus Current Account
- Trade Current Account
- Premium Current Account
- Regular Current Account
- Apex Current Account
- Max Current Account
- Reimbursement Current Account
- RFC Domestic Account
- Regular Fixed Deposit
- Super Saver Account
10
- Sweep - in Account
- HDFC Bank Preferred
- Private Banking
B. Loans
- Personal Loans
- Home Loans
- Two Wheeler Loans
- New Car Loans
- Used Car Loans
- Overdraft against Car
- Express Loans
- Loan against Securities
- Loan against Property
- Commercial Vehicle Finance
- Working Capita Finance
- Construction Equipment Finance
- Offers & Deals
- Customer Center
11
D. Forex Services
- Trade Finance
- Travelers Cheques
- Foreign Currency Cash
- Foreign Currency Drafts
- Foreign Currency Cheque Deposits
- Foreign Currency Remittances
- Cash To Master
- Forex Plus Card
E. Payment Services
- Net Safe
- Prepaid Refill
- Bill Pay
-Direct Pay
- Visa Money Transfer
- E-Monies Electronic Funds Transfer
- Excise & Service Tax Payment
G. Cards
12
13
14
I. Customer Centre
- Offers & Deals
- Winners of Contests & Promotions
2. Wholesale Banking
A. Corporate
Funded Services
Non Funded Services Value Added Services Internet Banking
15
Business Today
Dun & Bradstreet American Express
Bombay
Stock
Exchange
Nasscom
Managing
Director
Aditya
Puri
16
won
the
2006
Business Today
Forbes Magazine
Business world
2005
Asia money Awards
17
18
2004
Asia money Awards
Business World
Forbes Global
Enterprises
in
Asia/Pacific
Europe 2004
Asian Banker Awards
2003
Forbes Global
Companies
19
and
Outlook Money
Business Today
Users Awards
2002
Hong Kong-based Finance Asia magazine
2001
Hong Kong-based Finance Asia magazine
Forbes Global
Named
in
The
300
Best
Small
20
2000
Hong Kong-based Finance Asia magazine
Business India
Forbes Global
Named
in
The
300
Best
Small
2.4. MERGER
HDFC Bank and Centurion Bank of Punjab merger at share swap ratio of 1:29. The Boards
of HDFC Bank and Centurion Bank of Punjab met on 25 February, 2008 and approved, subject to
due diligence, the share swap ratio for the proposed merger of Centurion Bank of Punjab with
HDFC Bank. The Scheme of Amalgamation envisages a share exchange ratio of one share of
HDFC Bank for twenty nine shares of Centurion Bank of Punjab.
The combined entity would have a nationwide network of 1,148 branches (the largest amongst
private sector Banks) a strong deposit base of around Rs. 1,200 billion and net advances of
around Rs. 850billion. The balance sheet size of the combined entity would be over Rs. 1,500
billion.
Commenting on the proposed merger, Mr. Deepak Parekh, Chairman, HDFC said, We
were amongst the first to get a banking license, the first to do a merger in the private sector with
Times Bank in 1999, and now if this deal happens, it would be the largest merger in the private
sector banking space in India. HDFC Bank was looking for an appropriate merger opportunity that
would add scale, geography and experienced staff to its franchise. This opportunity arose and we
thought it is an attractive route to supplement HDFC Banks organic growth. We believe that
Centurion Bank of Punjab would be the right fit in terms of culture, strategic intent and approach
to business.
21
Mr. Aditya Puri, Managing Director, HDFC Bank said, These are exciting times for
the Indian banking industry. The proposed merger will position the combined entity to
significantly exploit opportunities in a market globally recognized as one of the fastest growing.
Im particularly bullish about the potential of business synergies and cultural fit between the two
organizations. The combined entity will be an even greater force in the market.
Mr. Rana Talwar, Chairman, Centurion Bank of Punjab stated, Over the last few
years, Centurion Bank of Punjab has set benchmarks for growth. The bank today has a large
nationwide network, an extremely valuable franchise, 7,500 talented employees, and strong
leadership positions in the market place. I believe that the merger with HDFC Bank will create a
world class bank in quality and scale and will set the stage to compete with banks both locally as
well on a global level.
Mr. Shailendra Bhandari, Managing Director and CEO, Centurion Bank of Punjab
said, We are extremely pleased to receive the go ahead from our board to pursue this opportunity.
Amerger between the banks provides significant synergies to the combined entity. The proposed
merger would further improve the franchise and customer proposition offered by the individual
banks.
Particulars
Interest
Earned
a)
Interest/discount
b)
Income
on
on
Quarter
Quarter
Year
ended
ended
ended
30.06.08
30.06.07
31.03.08
Unaudited
Unaudited
Audited
(a)+(b)+(c)+(d) 362173
206916
1011500
advances/bills 263638
145362
696673
Investments 95121
56047
287204
22
5337
27239
d) Others
170
384
57254
228315
264170
1239815
108364
488712
cost 54058
77438
374562
74880
28388
130135
49050
244427
318764
185802
863274
102751
78368
376541
34447
30712
148478
Exceptional Items
68304
47656
228063
21869
15533
69045
46435
32123
159018
Other Income
59342
421515
Interest
Expended 189826
Operating
Expenses
i)
Employees
(i)
(ii) 128938
10
Tax Expense
11
23
12
13
46435
32123
159018
42462
33319
35443
1114280
NIL
NIL
13.1%
13.6%
1 0.0
4 6.2
1 0.0
4 5.6
71016
90697
21424
29852
1.5%
1.3%
1.3%
annualized
0.5%
0.4%
0.5%
Public Shareholding
0.3%
0.3%
1.3%
14
15
Paid up equity share capital (Face Value of
Rs.10/- each)
16
per
balance
sheet
of
previous
accounting year)
Analytical Ratios
17
of
(ii)
Capital
(iii)
Earnings
India
Adequacy
Ratio NIL
per
(Rs.)
share
12.2%
Diluted
EPS
before
&
after
Gross
(b)
Net
NPA 10.8
NPA
- No. of shares
24
- Percentage of Shareholding
342173776
250744008
27198992
80.6%
75.3%
076.7%
25
CHAPTER 3:
PROJECT
3.1 PROBLEM DEFINATION:
Sales Executives were with good background human being and through rigorous process of
recruitment but still not able to perform up to the expectation level of company, HR is not able to
sort out the problem why the performance is not coming even after giving the full marketing
support. The communication technique and dealing with the customers is also a problem to the
sales executives.
26
27
CHAPTER4:
RESEARCH METHODOLOGY
For the purpose of study secondary data has been used for this purpose various articles,
journals and annual reports of the bank has been studied. In this project various ratios were studied
to find out the financial position of bank. These ratios are as follows:
Capital
Risk
Debit
Equity Funds
Net Profit
Net Sales (Operating Income)
5. Return on Equity
Net Income
Equity Share Capital
Net Profits
Average Total Assets
Debit
Total Assets
28
CHAPTER 5:
5.1 CONCLUSIONS:
HDFC Bank, the banking arm of HDFC is expected to go on stream. The bank already has
good number of employees on board and is recruiting Sales Executives heavily to take the
headcount to many more. It is on the brim of increasing its customers through its attractive
schemes and offer. The project opportunities provided was market segmentation and identifying
prospective customers in potential geographical location and convincing them to open an account
so that new Business Opportunities of the bank can be explored. Through this project, it could be
concluded that people are not much aware about the various products of the bank and many of
them not interested to open an account at all. services was considered as unsought good which
require hard core selling, but in changing trend in income and people becoming financially literate,
the demand for banking sector is increasing day by day. So, at last the conclusion is that there is
tough competition ahead for the company from its major competitors in the banking sector.
Last but not the least I would like to thank HDFC Bank for giving me an opportunity to
work in the field of Marketing. I hope the company finds my analysis relevant.
5.2 SUGGESTIONS:
Finally some recommendations for the company are as follows: To make people aware about the benefit of becoming HDFC Banks Sales Executive, following
activities of advertisement should be done through 1.Print Media.2.Hoarding & Banners.3.Stalls in
Trade Fares4.Distribution of leaflets containing details information..
The bank should provide life time valid ATM card to all its customers.
Minimum balance for savings account should be reduced from Rs 5000 to Rs1000, so that people
who are not financially strong enough can maintain their account properly
The company should provide a pass book to all its customers
Make people understand about the various benefits of its products.
Company should organize the program in the society, so that people will be aware about the
company and different products of the bank
Company should open more branches in different cities.
29
CHAPTER 6:
LIMITATIONS
LIMITATIONS:
Every work has its own limitation. Limitations are extent to which the process should not
exceed. Limitations of this project are: The project was constrained by time limit of two months.
Mindset of people may vary depending upon their age, gender, income etc.
Getting appointment from the concern person was very difficult.
People mind set about the survey was an obstacle in acquiring complete information & positive
interaction.
Respondents were very busy in their schedule. So it was very time consuming for them to answer
all the questions properly.
30
CHAPTER 7: BIBLIOGRAPHY
Books
Authors
Philip Kotler
V.S. Ramswami
C.R. Kothari
Research Methodology
S.P. Kasande
2. NEWS PAPERS
Times of India
Financial Express
3. WEBSITES
www.hdfcbank.com
www.google.com
www.citefin.com/profile.php?do=editprofile
31