CONTENT

TOPIC PAGE NO.

BUSINESS FOCUS……………………………………. …… 1
AMALGAMATION……………………………………. ……2
TECHNOLOGY………………………………………………3
PRIVATE BANKING……………………………………… 4
HDFC STANDARD LIFE INSURANCE…………………….5
BUSINESS PROFILE………………………………………..7-13
OVERVIEW OF SEGMENTS………………………………13-14
PRODUCTS AT A GLANCE……………………………….15-19
DISTRIBUTION NETWORK……………………… ……. 20-21
FINANCIAL HIGHLIGHT………………………….. …… 22-23
AWARDS…………………………………………………..24-25
WORLD OF HDFC BANK…………………………… …..26-76
(ALL PRODUCTS $ SERVICES)
INESTMENT CHOICES…………………………………...77-83
FINANCIAL PLANNING………………………………….84-90
OTHER PERFORMANCES……………………………… 91-100
RATIO ANALYSIS……………………………………….101-105
SYNPOSIS OF CASH INFLOW AND OUTFLOW……..106-108
SWOT ANALYSIS………………………………………..109-114
COMPARISION WITH ICICI BANK……………………115-118
PHILOSOPHY ON CORPORATE GOVERNANCE…… 119-120
RECOMMENDATIONS………………………………….121
HDFC Bank Limited, India

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 liberalisation 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 a 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 Bank's

aim is to build sound customer franchises across distinct businesses so as
to be the preferred provider of banking services in the segments that the
bank operates in 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 and regulatory
compliance. HDFC Bank's business philosophy is based on four core
values: Operational Excellence, Customer Focus, Product Leadership and
People.

Capital Structure

The authorised capital of HDFC Bank is Rs.450 crore (Rs.45 billion).

The paid-up capital is Rs.282 crore (Rs.28.2 billion). The HDFC Group holds
24.2% of the bank's equity while about 13.1% of the equity is held by the
depository in respect of the bank's issue of American Depository Shares
(ADS/ADR Issue). The Indian Private Equity Fund, Mauritius (IPEF) and
Indocean Financial Holdings Ltd., Mauritius (IFHL) (both funds advised by J
P Morgan Partners, formerly Chase Capital Partners) together hold about
5.5% of the bank's equity. Roughly 27.5% of the equity is held by FIIs,
NRIs/OCBs while the balance is widely held by about 214,000
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".
TimesBank Amalgamation

In a milestone transaction in the Indian banking industry, TimesBank

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

Management

Mr. Jagdish 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. The entire bank's
branches have connectivity which enables the bank to offer speedy funds
transfer facilities to its customers. Multi-branch access is also provided to
retail customers through the branch network and ATMs.
The Bank has made substantial efforts and investments in acquiring
the best technology available internationally to build the infrastructure for
a world-class bank. In terms of software, the Corporate Banking business is
supported by Flexcube, while the Retail Banking business by Finware, both
from i-flex Solutions Ltd. The systems are open, scaleable and web-
enabled.
The Bank has prioritized its engagement in technology and the
internet as one of its key goals and has already made significant progress
in web-enabling its core businesses. In each of its businesses, the Bank
has succeeded in leveraging its market position, expertise and
technology to create a competitive advantage and build market share.
Private banking

Private banking is a comprehensive and exclusive service, offered

by HDFC Bank, to select high net worth individuals and institutions. The
service is provided by an advisory team specialised in financial and
investment services. These experienced professionals put together
unbiased and objective guidance based on strong research and in-depth
analysis of financial instruments taking into account customers financial
goals and requirements.

Resident Services (Private Banking)

HDFC Bank Private Banking offers a customized Wealth

Management Programme on the existing portfolio and regular investible
surpluses. The objective of HDFC Bank‟s programme is to re-allocate and
optimise the returns of an investment portfolio across a range of financial
instruments in line with customers‟ profile and investment objectives.
HDFC Banks team of dedicated personal advisors offer professional
advice and complete procedural assistance, wherever possible, across a
wide range of financial instruments in line with asset allocation across

Insurance

As part of the HDFC Bank endeavor to offer a complete range of

financial services, customer can avail of insurance plans from HDFC
Standard Life Insurance through any of HDFC Bank branches.
 HDFC Standard Life Insurance, India's premier new life insurance
company, offers customised insurance solutions to meet life and health

risk protection, long term savings and retirement planning needs

with its range of products.

 An introduction

HDFC Standard Life Insurance Co. Ltd

HDFC Standard Life Insurance Co. Ltd was incorporated on 14th

August 2000. It was the first new Life Insurance Company to be granted

Certificate of Registration from IRDA on 23rd Oct 2000. HDFC is the

main stake holder with 81.4% while Standard Life owns 18.6%

Products Offered

 Savings Schemes : With profits Endowment Assurance / With Profits

Moneyback plan
 Whole Life Plans
 Risk Covers : Term Assurance / Loan Term Assurance
 Retirement Schemes : Personal Pension Plan
 Children Plan
1.2. “Business
Profile”
HDFC Bank caters to a wide range of banking services covering
commercial and investment banking on the wholesale side and
transactional / branch banking on the retail side. The bank has three key
business areas:-

 Wholesale Banking Services

The Bank's target market is primarily large, blue-chip manufacturing

companies in the Indian corporate sector and to a lesser extent,
emerging mid-sized corporates. For these corporates, the Bank provides a
wide range of commercial and transactional banking services, including
working capital finance, trade services, transactional services, cash
management, etc. The bank is also a leading provider of structured
solutions which combine cash management services with vendor and
distributor finance for facilitating superior supply chain management for its
corporate customers. Based on its superior product delivery / service
levels and strong customer orientation, the Bank has made significant
inroads into the banking consortia of a number of leading Indian
corporates including multinationals, companies from the domestic
business houses and prime Public Sector companies. It is recognised 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 world-class service and delivered to the
customers through the growing branch network, as well as through
alternative delivery channels like ATMs, PhoneBanking, NetBanking and
MobileBanking.
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 Services to retail
customers, offering customers the facility to hold their investments in
electronic form.
HDFC Bank was the first bank in India to launch an International
Debit Card in association with VISA (VISA Electron) and issues the
MasterCard Maestro debit card as well. The debit card allows the user to
directly debit his account at the point of purchase at a merchant
establishment, in India and overseas. The Bank launched its credit card in
association with VISA in November 2001. The Bank is also one of the
leading players in the "merchant acquiring" business with over 25,000

Point-of-Sale (POS) terminals for debit / credit cards acceptance at

merchant establishments. The Bank is well positioned as a leader in
various net-based B2C opportunities including a wide range of internet
banking services for Fixed Deposits, Loans, Bill Payments, etc.

 Treasury Operations

Within this business, the bank has three main product areas -
Foreign Exchange and Derivatives, Local Currency Money Market & Debt
Securities, and Equities. With the liberalisation of the financial markets in
India, corporates 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.

 Rating

HDFC Bank has its deposit programmes rated by two rating

agencies - Credit Analysis & Research Limited (CARE) and Fitch Ratings
India Pvt. Ltd. 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". HDFC
Bank also has its

long-term unsecured, subordinated (Tier-II) Bonds rated by CARE and

Fitch Ratings India Pvt. Ltd. CARE has assigned the rating of "CARE AAA" for
the Tier-II Bonds while Fitch Ratings India Pvt. Ltd. has assigned the rating
"AAA (Ind)" with the outlook on the rating as "stable". In each case
referred to above, the ratings awarded were the highest assigned by the
rating agency for those instruments.

 Corporate Governance Rating

The bank was one of the first four companies which subjected itself
to a Corporate Governance and Value Creation (GVC) rating by the
rating agency, The Credit Rating Information Services of India Limited
(CRISIL). The rating provides an independent assessment of an entity‟s
current performance and an expectation on its "balanced value creation
and corporate governance practices" in future. The bank has been
assigned a „CRISIL GVC Level 1' rating which indicates that the bank's
capability with respect to wealth creation for all its stakeholders while
adopting sound corporate governance practices is the highest.
1.3. “Overview in terms of segments”
The Bank operates in three segments: wholesale banking, retail

banking and treasury services.

Segments have been identified and reported taking into account,
the target customer profile, the nature of products and services, the
differing risks and returns, the organisation structure and the internal
business reporting systems.
The wholesale banking segment provides loans and transaction
services to corporate and institutional customers. Revenues of the
wholesale banking segment consist of interest earned on loans made to
corporate customers, investment income from commercial paper,
debentures and bonds, interest earned on the cash float arising from
transaction services, fees from such transaction services and also trading
operations on behalf of corporate customers in debt, foreign exchange
and derivatives segment. The principal expenses of the segment consist of
interest expense on funds borrowed from external sources and other
internal segments, premises expenses, personnel costs, other direct
overheads and allocated expenses.
The retail banking segment serves retail customers through a
branch network and other delivery channels. This segment raises deposits
from customers and makes loans and provides advisory services to such
customers. Revenues of the retail banking segment are derived from
interest earned on retail loans, net of commission (net of subvention
received) paid to sales agents, interest on card receivables, fees for
banking and advisory services and interest earned from other segments
for surplus funds placed with those segments. Expenses of this segment
 primarily comprise interest expense on deposits, infrastructure and
premises expenses for operating the branch network and other delivery

channels, personnel costs, other direct overheads and allocated

expenses.
The treasury services segment undertakes trading operations on the
proprietary account, foreign exchange operations and derivatives
trading. Revenues of the treasury services segment primarily consist of
fees and gains or losses from trading operations. Segment revenue
includes earnings from external customers plus earnings from funds
transferred to other segments. Segment result includes revenue less
interest expense less operating expense and provisions, if any, for that
segment. Segment-wise income and expenses include certain
allocations. Interest income is charged by a segment that provides
funding to another segment, based on yields benchmarked to an
internally developed composite yield curve which broadly tracks market
discovered interest rates. Transaction charges are made by the retail
banking segment to the wholesale banking segment for the use by its
customers of the retail banking segment‟s branch network or other
delivery channels; such transaction costs are determined on a cost plus
basis. Segment capital employed represents the net assets in that
segment. It excludes capital and net unallocated items.
1.4. “Products at a
Glance”

 Savings Account: Apart from the usual facilities, customer gets a

free ATM Card, Interbranch banking, NetBanking, BillPay,
PhoneBanking, Debit Card and MobileBanking, among others.

 HDFC Bank Preferred: A preferential Savings Account where

customer are assigned a dedicated Relationship Manager, who is
your one-point contact. Customer also get privileges like fee
waivers, enhanced ATM withdrawal limit, priority locker allotment,
free Demat Account and lower interest rates on loans, to name a
few.

 Sweep-In Account: A fixed deposit linked to Savings Account.

So, even if Savings Account runs a bit short, customer can issue a
cheque. The money is automatically swept in from fixed deposit into
Savings Account.

 Super Saver Account: Gives overdraft facility up to 75% of Fixed

Deposit. In an emergency, customer can access his/her funds while
Fixed Deposit continues to earn high interest.

 HDFC Bank plus: Apart from Regular and Premium Current

accounts HDFC Bank also have HDFC Bank Plus, a Current Account
 and then some more. Customer can transfer up to Rs. 50 lakh per
month at no extra charge, between the four metros.

 Demat Account: Conduct hassle-free transactions on shares.

Customer can also access Demat Account on the Internet.

 Current Account: Customers get a personalised cheque book,

monthly account statements, inter-branch banking and much more.

 Mutual Funds: Apart from a wide choice of mutual funds to suit

individual needs, customer can be benefited from expert advice on
choosing the right funds based on in-depth market analysis.

 International Credit Card: Get an option of Silver, Gold, or

Health Plus Credit card, accepted worldwide from a world-class
bank. If customers have outstanding balance on other credit card,
customer can transfer that balance to this card at a lower interest
rate.

 NRI Services: A comprehensive range, backed by unmatched

features and world-class service, ensures NRI‟s all the banking
support they need.

 Forex Facilities: Avail of foreign currency, traveler‟s cheques, and

foreign exchange demand drafts to meet customer‟s travel needs.
Innovative services

 PhoneBanking: 24-hour automated banking services with 39

PhoneBanking numbers available.

 ATM 24-hour banking: Apart from routine transactions, Customer

can also pay utility bills and transfer funds, at any of HDFC Bank
ATMs across the country all year round.

 Inter-city/Inter-branch Banking: Customers access account

from any of 322 branches in 165 cities.

 NetBanking: Access bank account from anywhere in the world, at

anytime, at Customer‟s own convenience. Customer can also view
Demat Account through NetBanking.

 International Debit Card: An ATM card can shop with all over
the country and in over 140 countries with. Customer can spend in
any currency, and pay in Rupees.

 MobileBanking: Accessing account on mobile phone screen at

no airtime cost. Using SMS technology to conduct banking
transactions from customer‟s cell phone.
  BillPay: Payment of telephone, electricity and mobile phone bills
through HDFC Bank ATMs, Internet, phone or mobile phone. No
more standing in long queues or writing cheques.

Loans for every need

HDFC loans come in easy-to-pay monthly installments, and are

available with easy documentation and quick delivery.

 Personal Loans: Loans of up to Rs. 3 lakh for a wedding,

education purchase of a computer or an exciting holiday.

 New Car Loans and Used Car Loans: Finance up to 90% of the
cost of a car, new or used! And the loan comes with easy
documentation and speedy processing at attractive interest rates.

 Loans against Shares: Getting overdraft up to Rs. 10 lakh at an

attractive interest rate against physical shares, up to 50% of the
market value of shares. In case of Demat Shares, customer can get
Loans against Shares of up to 65% of the market value of shares, till
Rs. 20 lakhs.

 Two Wheeler & Consumer Loans: Helping customer to buy the

best durables for customer‟s home.
1.5. “Distribution Network”

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

enviable network of over 600 branches spread over 300 cities across the
country. All branches are linked on an online real-time basis. Customers in
all locations are also serviced through Phone Banking. The Bank's
expansion plans take into account the need to have a presence in all
major industrial and commercial centres 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 centres
where the NSE / BSE have a strong and active member base.
The Bank also has a network of over 2000 networked ATMs across
these cities. Moreover, HDFC Bank's ATM network can be accessed by all
domestic and international Visa/MasterCard, Visa Electron/Maestro,
Plus/Cirrus and American Express Credit/Charge cardholders.
1.6 “A Short Financial Highligh

 Profit after tax up by 31.4%

 Earnings per share increases from Rs. 13.75 to Rs. 17.95
 Dividend per share increases from Rs. 3.00 to Rs. 3.50 (proposed)
 Branch Network up from 231 to 312 outlets
 ATM network up from 732 to 2000
 PhoneBanking coverage in all cities
 Point-of-Sale (POS) Terminals at merchant outlets up from 21800 to
56400
 Geographic reach expanded from 122 cities to 300 cities
 Balance Sheet size up from Rs. 30,424 crores to Rs. 82,307 crores
 Savings deposits up from Rs. 4,663 crores to Rs.17,804 crores
 Retail assets up by 112.9% to1 7,325 crores
1.7. “Awards”
HDFC Bank continued to receive awards and gain recognition from
various leading domestic and international publications during 2003-04. It
was selected as “Best Bank in India – 2006” by Business todaymagazine A
and “Best Domestic Bank in India Region" in The Asset Triple A Country
Awards 2003. The Bank was also rated as the "Best Bank in India" in 2003
by Business Today, “Best Bank in the Private Sector" for the year 2003 in the
Outlook Money Awards and “Best New Private Sector Bank 2003” by the
Financial Express in the FE-Ernst & Young Best Bank's survey 2003. For its
use of information technology, the Bank was awarded the "Best IT User in
Banking" award at the IT User Awards 2003 conferred by
Economictimes.com & Nasscom.
2.1. “The world of
HDFC Bank”
2.1.1. “Savings Account”

Regular Savings Account

HDFC Bank presents the only e-Age Savings Account that keeps
pace with customers growing needs. It is a unique savings account in
India, which helps to withdraw or deposit cash through wide network of
branches and ATMs across India.
It comes with the comforts of FREE PhoneBanking, MobileBanking
and NetBanking from practically anywhere, anytime with savings
account.
The customer can use International Debit Card to shop at over 80
lakh establishments in 140 countries. Payment of electricity, mobile phone
and telephone bills through the phone, Internet or the ATM with the unique
BillPay Facility. All this is for a minimum balance of just Rs. 5000/-.

e-Age Advantages

 International Debit Card

Enjoyment of shopping at over 15,000 establishments in
India and over 80 lakh establishments in over 140 countries.

 NetBanking Checking up-to-the-second account balance,

transferring funds between the accounts or to third parties,
 MobileBanking
FREE access to account on mobile phone, through SMS
or WAP services.

 BillPay
This convenient facility to pay electricity, phone and
mobile phone bills with a single call, mouse click or from any
of ATMs. The payment is made and the amount is deducted
from account ONLY on receiving customers‟ instructions.
 ATM
Customers will get a FREE ATM Card and can access
account, 24 hours a day, 365 days a year, from ATMs spread
across India.
 PhoneBanking
FREE 24-hour PhoneBanking to check balance, finding
out the status of cheque or even can open a new Fixed
Deposit, all from the comfort of customers home or office.

 Inter-city and inter-branch banking

Customer can conveniently bank across the counter at
any of HDFC Bank‟s 324 branches across the country,
absolutely FREE, for transactions up to Rs. 50,000/- per day.
Additional benefits

 3.50% interest per annum credited to account, at quarterly

intervals.
 Monthly statements, duplicate statements and certificate of
balance are also available at a nominal fee.
 Fund Transfers & Demand Drafts
 FREE personalised cheque book for enhanced security.

 Sweep-In Account
With the Sweep-In facility, customers can automatically
transfer funds from Fixed Deposits to Savings Account
whenever needed.

 Super Saver Account

Customer can transfer a part of Fixed Deposit funds into
Savings Account without breaking the Fixed Deposit or losing
interest on it.

Fees

 Any one can open Savings Account with a minimum deposit of only
Rs. 5,000/-.
 Alternatively, he/she can automatically gain access to a zero
balance Savings Account, when he/she opens a Fixed Deposit for


 Rs. 50,000/-. He/she is not charged a service fee, Even he/she

unable to maintain an average balance of Rs. 5,000/-.
Penalty

The minimum average quarterly balance maintained must be Rs.

5,000/-. If minimum average quarterly balance is less than Rs. 5,000/- a
service charge of Rs. 750/- will be levied per quarter.

Freedom saving account

 HDFC Bank introduced Freedom Account, the e-Age Savings

Account for the mobile phone generation. Any one can access
account anytime from anywhere without having to visit the bank
from ATMs, Internet, Phone or even from mobile.
 Banking through SMS or WAP, he/she can avail of all these facilities
absolutely FREE.
 He/she can even get an International Debit Card that can be used
in 140 countries

E-Age Advantages

 A lower average quarterly balance of only Rs. 1,000/-

 Personalised cheque books for enhanced security

 International Debit Card

Enjoyment of shopping at over 15,000 establishments in India
and over 80 lakhs establishments in over 140 countries.

 NetBanking
 Can check up-to-the-second account balance,
transferring funds between customers‟ accounts or to third
parties, and much more

 MobileBanking
FREE access to account on mobile phone, through SMS
or WAP services.

 BillPay
This convenient facility to pay electricity, phone and
mobile phone bills with a single call, mouse click or from any
of ATMs.

 ATM
Customers will get a FREE ATM Card and can access
account, 24 hours a day, 365 days a year, from ATMs spread
across India.

 PhoneBanking
FREE 24-hour PhoneBanking to check balance, finding
out the status of cheque or even can open a new Fixed
Deposit, all from the comfort of customers home or office.
Salary account

When a company opts for the HDFC Bank Corporate Salary Account
programme, he/she gets more than just a Savings Account. He/she gets a
superior banking experience plus a host of value-added services. And an
e-Age banking account that is accessible 24 hours a day, 7 days of the
week and 52 weeks of the year. Through free NetBanking, MobileBanking,
PhoneBanking facilities, wide network of ATMs and branches across the
country.
He/she and his/her colleagues get the convenience of having
salaries credited directly, a free International Debit Card, Overdraft
facility, plus free Demand Drafts and preferential interest rates on Personal
Loans.

The Advantages

 Zero balance account

He/she do not have to maintain any minimum balance
in the account.
 Free International Debit Card
 Free Inter-city/Inter-branch banking
 All Inter-city/Inter-branch transactions are free.
 Free Demand Drafts
 Free Fund Transfers
Free Fund Transfer from his/her account to any HDFC
Bank account in any city/branch.
 Cash delivery to office
  Cheque Pick-up A drop box is installed at the company premises
and the cheques will be picked up at designated intervals.
 Overdraft Facility
 Discounts on Loans

 Personalised cheque books

To provide customers added security, the Savings
Account cheque book comes with the name printed on it, at
no extra cost. In the case of joint accounts, both account
holders' names will be printed on the cheque book.

Defence salary account

When any one opts for the HDFC Bank Defence Salary Account
programme, he/she gets more than just a Savings Account. He/she also
gets a superior banking experience plus a host of value-added services.
And an e-Age banking account that is accessible 24 hours a day, 7 days
of the week, 52 weeks of the year. Through free NetBanking,
MobileBanking, PhoneBanking facilities
He/she can get the convenience of having his/her salaries credited
directly, a free International Debit Card, free collection of outstation
cheques, plus free Demand Drafts and preferential interest rates on
Personal Loans.
The Advantages

 Zero balance account

He/she do not have to maintain any minimum balance
in the account.
 Free International Debit Card

 Free Inter-city/Inter-branch banking

There is no cap on the transaction size for
interbranch/city transactions for Defence Salary Account
holders.
 Free Demand Drafts
 Free Fund Transfers
Free Fund Transfer from his/her account to any HDFC
Bank account in any city/branch.

It's FREE

As a defence salary account holder with HDFC Bank can get access to
a world class services and benefit. Some of the privileges that can be
availed of under special program are:
 Zero Balance Savings Account
 Free International Debit Card
 Free Inter-city/Inter-branch banking
  Free Collection of Outstation Instruments drawn on HDFC Bank
locations
 Demand Drafts issued on an HDFC Bank location are free for Salary
Account holders for a value of up to Rs. 25,000/- .

Kid's bank Account

It is wonderful that someone is looking after child's financial growth.

That there is a bank, which values child's future. Moreover, introduces a
completely new world of possibilities.

Advantages

 Free education insurance cover of Rs. 1, 00,000.

 He/she can opt for systematic investments in mutual funds to plan
for his/her kid's future.
 For children of age 7 years and above, an ATM/International Debit
Card will be issued in the child's name with parent/guardians
permission, of course. The amount the child is able to withdraw or
spend on the ATM/International Debit Card is Rs. 2,500 per day (Rs
1500 at ATMs, Rs 1000 at merchant locations).
 Personalised Cheque Book for the child.
 Quarterly statement accounts in the child's name.
 Free NetBanking to monitor kid's account.
 Free transfer of funds between parents/guardian HDFC Bank Savings
Account and Kid's Advantage Account.
How to open the kid's Advantage Account

 As a parent/guardian just have to open a Savings Account with

HDFC Bank
 By investing a sum of Rs. 25,000 in a Fixed Deposit in child's name of
minimum duration 6 months one day.
 A Zero Balance Kid's Advantage Account linked to the fixed Deposit
will be opened in the child's name with him/her as the guardian.

Fees

If the balance in the child's Fixed Deposit Account falls below Rs

25,000, non-maintenance charges as applicable in the regular savings
account will apply.

Pension Account for EPFO Pensioners.

The Employees Provident Fund Organisation (EPFO) has appointed

the bank as an Additional Disbursement Agency, under the Employees
Pension Scheme 1995. This Pension Disbursement Saving Bank account is
operational from all the Branches of the Bank throughout the country.
Advantages

HDFC Bank is the only private sector Bank in the country given the
mandate to open/service pension accounts for pensioners under
Employees Pension Scheme 1995. The pension account will come with a
host of attractive features such as:

 Zero balance saving account

 Free International Debit Card
 Free Fund Transfers.
Free Fund Transfer from his/her account to any HDFC
Bank account in any city/branch
 Free facilities of Phonebanking and Netbanking
 Free Inter-branch/ Inter-city banking

 Personalised cheque books

To provide added security, the Savings Account
cheque book comes with name printed on it, at no extra cost.

HDFC Bank also offer a host of world class services, which

include:

 Attractive rates of interest on fixed deposits

 Other attractive investment schemes (country's top mutual funds
etc)
2.1.2. “Current account”
Plus

In today's fast-paced business, people frequently need to transfer

funds in and across cities, and time is of the essence. HDFC Bank Plus
Current Account providing the power of inter-city banking with a single
account.
From special cheques that get treated at par with local ones in any
city where HDFC Bank have a branch, to free inter-branch transfers of up
to 100 lakhs, banks priority services have become the benchmark for
banking efficiency

The Advantages

 Convenient Inter-city banking across 53 cities:

 FREE Funds Transfer. Huge Savings.

Customers can transfer funds absolutely FREE across all
locations up to a total value of Rs.100 lakhs per month.

 Easy cash deposit and withdrawal.

Customers can avail of the service FREE, at home
branch, as per the branch's discretion. At non-home
branches within the same city, customers can withdraw cash
up to Rs.50, 000/-
  FREE Demand Drafts (without any limit)
Demand drafts of value up to Rs. 10 lakhs per day are
available FREE.
 FREE cheques and documents pick-up

 FREE outstation cheque collection.

Collection of cheques drawn on HDFC Bank locations is
at no extra cost and crediting to customers account will be
done
 FREE ATM card
If customer is a sole proprietor or individual Current
Account holder. Debit Card will be at a nominal charge for
Individual and Sole Proprietor Current Accounts.
 FREE NetBanking

Fees

To avail of the above facilities, all the customer need is an Average

Quarterly Balance (AQB) of Rs. 1, 00,000/- per quarter, non-maintenance
of which entails:

 AQB less than 1 lakh and up to Rs.50,000/-, there is a service charge

of Rs.1,500/- per quarter
 AQB less than Rs.50, 000/-, there is a service charge of Rs.3, 000/-
per quarter.
Trade current account

In today's changing business requirements, people need to transfer

funds across cities and time is of the essence. HDFC Bank Trade Current
Account gives the power of inter-city banking with a single account.
From special cheques that get treated at par with local ones in any
city where HDFC Bank have a branch, to free inter-branch transfers of up
to 25 lakhs, HDFC Banks priority services have become the benchmark for
banking efficiency.

The Advantages

 Convenient Inter-city banking across 105 cities:

Customers‟ cheques are treated at par with local
cheques and are cleared within 2 days instead of 7 for
national cheques. Customers also save nearly 50% of charges
they normally spend on Demand Drafts.

 FREE Funds Transfer. Huge Savings.

Customers can transfer funds absolutely FREE across all
locations, in the HDFC Bank network up to a total value of
Rs.25 lakhs per month.

 Easy cash deposit and withdrawal. Customers can avail of the

service FREE, at home branch, as per the branch's discretion. At non-
home branches, customers can withdraw cash up to 50,000/-.

 FREE Demand Drafts (without any limit)

 Demand drafts of value up to Rs. 10 lakhs per day are
available FREE. In a quarter, 30 such drafts are FREE. For some
cities there is no limit

 FREE outstation cheque collection.

Collection of cheques drawn on HDFC Bank locations
is at no extra cost and crediting to the account will be done

 FREE ATM card

If customer a sole proprietor or individual Current
Account holder. Debit Card will be at a nominal charge for
Individual and Sole Proprietor Current Accounts.

 FREE NetBanking
For inquiry transactions. Authorised signatory has to
register using individual customer I.D. Financial transactions
are also allowed on completion of certain formalities.

Fees

To avail of the above facilities, all the customer need is an Average

Quarterly Balance (AQB) of Rs. 40,000/- per quarter, non-maintenance of
which entails:

 AQB less than Rs.40, 000/-, there is a service charge of Rs.1, 200/-
per quarter.
Premium current account

Customers business needs a partner who can manage finances

while concentrating on growth of business. HDFC Bank makes customers
funds easily accessible wherever business expands. For this the HDFC
Bank introduced Premium Current Account 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.

The Advantages

 Customer can access his/her account anytime and anywhere, to

withdraw cash, deposit cash, cheques, make balance inquiries or
mini statements, and for cheque book requests.
 Useful inter-city banking
 Personalised cheque book for enhanced security.

 Safe & convenient Intra-city banking

Can deposit and withdraw cash in more than one
branch/ATM in a city (only for sole proprietorship companies).
So customers don‟t have to risk carrying money with him/her,
wherever he/she goes.
  ATM
Customers will get a FREE ATM Card and access his/her
account from the wide network of ATMs, across the country.
 PhoneBanking:
 Free NetBanking

 MobileBanking
Easily access to the bank account on mobile phone
screen and can carry out banking transactions without
making a call.

 Sweep-In
Facility that customer can automatically transfer funds
from the Fixed Deposit to current account whenever needed
 Attractive rates for inter-city/inter-branch transactions

Essential Balance

To avail the above facilities, the customer is need to maintain a

minimum average balance of Rs. 25.000/- per quarter, the non-
maintenance of which entails a fee of Rs. 600/-
Fees

To avail the above facilities, the customer is need to maintain a

minimum average balance of Rs. 25.000/- per quarter, the non-
maintenance of which entails a fee of Rs. 900/-

Regular current account

Money transactions are at the heart of most business relationships.

Customers bank's support and services can make all the difference in
closing a deal, and maintaining goodwill with business associates.
The HDFC Bank Current Account gives access to a large network of
branches across India. HDFC Bank also gives 4 direct access channels to
the account - the phone, mobile, Internet and through the ATM. So
customers can do the banking at his/her convenience, not banks.

The Advantages

 Customer can access his/her account anytime and anywhere, to

withdraw cash, deposit cash/cheques, make balance inquiries or ask
for mini-statements, or make a cheque book request.
 Useful inter-city banking

 Safe & convenient intra-city banking

Deposit and withdraw cash in more than one
branch/ATM in a city (only for sole proprietorships). So
customers don‟t have to risk carrying money with him/her,
wherever he/she goes.
 ATM
Customer will get a FREE ATM Card and access the
account from the wide network of ATMs across the country
 PhoneBanking
 Free NetBanking

 MobileBanking
FREE access to the account on mobile phone screen
through SMS or WAP services

 Sweep-In Account
Facility that customers‟ can automatically transfer funds
from the Fixed Deposit to current account whenever needed
 Attractive rates for inter-city/inter-branch transactions
 FREE personalised cheque book of 50 leaves for enhanced security.

Fees

To avail the above facilities, the customer is need to maintain a

minimum average balance of Rs. 10,000/- per quarter, the non-
maintenance of which entails a fee of Rs. 750/-

Reimburse account

HDFC Bank introduced the Reimbursement Account. It completely

eliminates the necessity of counting and recounting cash, and the tedious
paperwork and receipts involved. For those employees who already have
Salary Accounts with HDFC Bank.
 It‟s as easy as that. For instance, no more worries about carrying
large amounts of cash around with self. Since it is separate from the Salary
Account, it‟s also so much easier for customers to maintain and track all
the cash payments in the Reimbursement Account. Customers can
access the account, anytime and from anywhere in the world.

The Advantages

Being a current account, the Reimbursement Account does not pay

any interest. However, it does offer various facilities that enable to transact
shop and make payments with ease. These include:

 International Debit Card

The existing free International Debit Card, which is
attached to Salary Account, will now also be linked to the
Reimbursement Account, enables to choose the transaction
account at the ATM.

 Free PhoneBanking
Accessing the account is extremely easy. All need to
do is dial the PhoneBanking number and press a few buttons
on the telephone.

 Free NetBanking
Any banking transaction can be carried out on the
account with just a click of a mouse, all from the comfort of
PC at home or office.

 Free MobileBanking
 This innovative feature enables banking on the move,
using SMS or by using WAP.

 Interbranch/Intercity Banking

It's FREE

These are the privileges that the customer would enjoy as a

Reimbursement Account customer, if a company starts a Reimbursement
Account with HDFC Bank for the employees.

 Zero Balance Savings Account

 Free International Debit Card
 Free Inter-city/Inter-branch banking
 Free Phone Banking
 Free Mobile Banking
 Free Net Banking

 Free Bill Pay Facility

 Half yearly statement
Resident Foreign Currency Domestic Account.

Now even resident Indians can open and operate a Foreign

Currency account in India. If customer has acquired foreign exchange
while traveling abroad or as gifts or by other means as approved by
Reserve Bank of India, this is the account for him/her.More importantly,
customer is protected against exchange rate fluctuations as funds are
maintained in a designated foreign currency. Customer will also get
preferential rates when convert foreign exchange held with the bank into
Indian Rupees.Customer can open this account either in U S Dollar, Great
Britain Pound or Euro.

Who Can Apply

 All Resident Indians (Individuals) having either a current or savings

account with HDFC Bank can open this account. (New Customers
can open this account by first opening either a current or savings
account with the bank.)
 The account can be held only in Single name. Cannot be held with
any other joint account holders.


 Currently Partnership, Proprietorship, HUF and Minors are not eligible

to open such accounts.

Fees

To avail of the above facilities, all the customer need is an Average

Quarterly Balance (AQB) of US Dollars 250, Great Britain Pound 200 or Euro
250, per quarter depending on the account that he/she has, non-
maintenance of which entails

 Service charge of US Dollars 10, Great Britain Pound 7 or Euro 10

respectively.

2.1.3“Loans”

Personal Loan

A wedding in the family. Maybe house needs renovation. Or

customer‟s daughter has obtained admission to a medical college. These
are moments in life when we may need a helping hand. That customers
can rely on HDFC Bank Personal Loan. HDFC Bank offers all kind of
personal loan meeting personal requirements in India. The procedures are
simple, documentation is minimal and approval is quick.

Advantages of Personal Loan Services

 Speedy loan approval

 Flexibility to borrow Rs 25,000/- to 10, 00,000/-
 Convenience of service at doorstep.
 Repayment options of 12 to 48 months
 One of the lowest interest rates.
 No guarantor/security/collateral required.

[Note: this facility is not available in HDFC Bank Cuttack till the report is
prepared]
Two Wheeler Loan & Consumer Loan

Now people can imagine getting around with the two wheeler of
their dreams or the sheer joy of watching their daughter becomes a wiz on
a home PC. Whatever they dream, HDFC Bank offers all kind of consumer
durable loan meeting people‟s personal requirements.

Types of consumer loan

 Personal Computer Loan

 Air-Conditioner Loan
 Loan on consumer durable like TVs, Washing Machines,
Refrigerators etc. (for HDFC Bank a/c holders only.)

Advantages of our Two Wheeler Loan and Consumer Loan

Services

 Speedy loan approval

 Wide variety of consumer products financed - two-wheelers,

televisions, refrigerators, washing machines, audio systems,
microwave ovens, air-conditioners, computers and many more.
 Flexible repayment options, ranging from 6 to 36 months available
even at the point of purchase.
  Repay through post-dated cheques with easy EMIs.
 Lowest interest rates.
 Large range of schemes/products/modules.
 No guarantor required.

Car Loan - New Car Loans

People generally spent a lot of time thinking about the make, model
and colour of the car. But now they don't have to spend a moment more
than necessary to bring it home. HDFC Bank's Car Loans Scheme is the
most convenient way to get a loan for new dream car.

Advantages of Car Loans Services

 Speedy processing - within 48 hours.

 Covers the widest range of cars and multi-utility vehicles in India.
 Whatever the car customer chooses HDFC Bank finances up to 90%
of its invoice value.
 Flexible repayment options - 12 to 60 month period.
 Attractive car loan plans.
 Among the lowest interest rates.
 Hassle-free documentation.
 Prepayment - prepay the loan anytime after 6 months at a small
charge.
 Special rates for HDFC Bank account holders.
Car Loan - Used Car Loans

Today, used car of reliable quality and good value for money are
readily available. HDFC Bank Used Car Loans puts people in the driver‟s
seat. Flexible options are available for most models at competitive interest
rates, and quick approvals. HDFC Bank also helps to select good quality
used cars and even value them.

Advantages of Used Car Loans Services

 Customers can choose any car manufactured in India within a

certain age.
 Choose flexible loan repayment schedules.
 Get up to 80% finance of the value of the car.
 Repay in easy installments of 12 to 48 months.
 Lowest interest rates.

Commercial Vehicle Loan

HDFC Bank offers finance or loan options for the purchase of truck,
bus, tipper or light commercial vehicle. HDFC Bank offers hassle-free
Commercial Vehicle Loan with the best terms for funding at the most
attractive rates in India.

[Loans for all types of commercial vehicles. Funding for all models of
Telco, Ashok Leyland, Eicher, Swaraj Mazda, Volvo etc. The choice is
entirely at the hand of consumer]

Extra facility (Balance Transfer)

 People who have already taken a loan from elsewhere, at a higher
rate, want to take advantage of HDFC Bank's rates, No problem they can
avail of HDFC Bank‟s Balance Transfer facility by exchange their old loans
for a commercial vehicle loan from HDFC Bank at a much lower rate.

Commercial Vehicle Loan - Advantages

 Up to 100% financing.
 Up to 5 year‟s tenor.
 Finance for all popular brand of commercial vehicle LCV, MCV and
HCV.
 Simpler documentation.
 Quick processing.
 Very competitive interest rates.

Loans against Securities

Money blocked in high yielding securities viz: Equity Shares, Mutual

Fund Units, GOI Relief Bonds, LIC Policies, and IMDs/RIBs. No problem! By
applying for an e-Instant Loan, and in just 60 seconds customers can find
out exactly how much overdraft he/she can draw against securities, while

still retaining ownership. And if eligible, he/she will have the money
in hands in a few days. By applying online, he/she will get a preferential
interest rate. And the best part is that he/she can continue to enjoy all
shareholder benefits such as rights, dividends and bonuses.

Advantages of Loan against Securities Services

  Online eligibility approval in 60 seconds, loan disbursement in 72
hours.
 Overdraft facility can be availed against pledge of Equity Shares,
Mutual Fund units, GOI Relief Bonds or LIC Policies, RIBs/IMDs.
 Preferential rate of interest for online applications.
 Pay interest only on the amount outstanding and only for the time
he/she uses it.
 Interest is calculated on the daily outstanding balance and debited
to the account every month end.
 Shares can be pledged from any Depository (NSDL or CDSL) and
any Depository Participant across the country.

Features

 Minimum loan amount : Rs. 50,000/-

 Drawing Power
 Demat Shares Demat Shares up to 50% of the value
 Mutual Funds Mutual Funds up to 50% of the value (Income Funds
up to 60% of the value)

The contribution of single scrip should not exceed 65% of the total
portfolio value at any point of time during the tenure of the account.

 Lending up to 50% of the value.

 HDFC Bank to be the Depository Participant.
 Maximum Loan Amount Rs. 20 Lakhs
 To receive the overdraft amount, a Current Account is created in
his/her name into which, HDFC Bank will create an overdraft limit. This
entitles him/her to avail all the Current Account benefits like:

 FREE International Debit Card.

 FREE ATM facility enabling anytime access to account from all the
ATMs around the country.
 FREE PhoneBanking - allowing 24-hour access to account.
 FREE NetBanking - allowing 24-hour access to account.
 A personalised cheque book for enhanced security.
 Detailed statement showing the current value of portfolios and the
securities pledged by the customer.

Home loans

Buying a property requires a complete knowledge of real estate

and in today‟s complex financial market it is difficult to choose the
appropriate home loan company. HDFC Bank brings home loans every
person‟s doorstep. With over 25 years of experience, a dedicated team of
experts and a complete package to meet housing finance needs, ever

eager to guide with a basket of value added products and services. That‟s
why HDFC Bank says, any one can offer housing finance, but only the
most experienced can guide completely.HDFC home loans for buying or
constructing homes re-finance a home loan availed from other institutions
or even to extend or improve existing home. HDFC also offer finance for
purchase of loan from approved agencies to help in constructing a home
of customers‟ choice. Customer could acquire a self-contained flat in an
existing or proposed co-operative society, in an apartment owners
association or even an independent single-family or multi-family
bungalow or row house.

The benefits of availing a loan from HDFC

 Option to choose loan as Fixed Rate or Floating Rate

 Option to structure loan as Partly Fixed or Partly Floating.
 In-house scrutiny of Property documents for complete peace of
mind
 Option to choose flexible repayment option to suit individual needs
 Option to apply for a loan from the comfort of office or residence.
2.1.4. “Fixed Deposit”

Regular Fixed Deposit

Urgent needs never announce them selves. But customers always

have to be prepared for them. What better way to save than a Fixed
Deposit in HDFC Bank, a leading private sector bank in India.

The Advantages

 Automatic rollover
Customer can choose to roll over only the principal
amount that he/she deposits or principal plus interest earned
(i.e. re-invest the interest).
 When customer re-invests the interest, he/she gets compound
interest on the total amount, i.e. rollover of principal plus interest, at
the end of the period (month or quarter)
 Customer can specify, on or before the maturity date, changes in
deposit tenure, maturity instructions, payment instructions, principal
amount and rollover mode (from principal to principal plus interest
or vice versa)
 Customer can withdraw any amount during the deposit period
Type of deposit Minimum tenure Maximum tenure

Simple 15 days 5 years

Re-investment 6 months + 1 day 5 years

 No penal interest on premature withdrawals

 Customer will earn interest for the period for which the Fixed Deposit
was held, prevalent at the time of booking, if Fixed Deposit is
encashed before the maturity date.
 If any body encash the Fixed Deposit before the minimum
stipulated period, as per RBI guidelines (presently 15 days), it earns
no interest. As per HDFC Bank policy, there will be no penal interest
on any premature withdrawal.

Senior Citizen Fixed Deposit

As a value addition, the bank is offering special rates to senior

citizens/retired personnel (60 years and above) on short-term deposits as
well (e.g. 15 to 29 days). The rate hike of 0.25% to 0.50% is extremely
competitive considering that the bank's base rate itself is high.

Initial deposit for opening a Fixed Deposit: Rs.10, 000/-

Add-ons at a minimum of Rs.5, 000/-.
Tax Deductions for Re-investment Fixed Deposits

TDS will be deducted when interest payable or reinvested per

customer, per branch, exceeds Rs 5,000 in a financial year and a
consolidated Annual TDS Certificate will be mailed to the customer after
the end of the financial year, including details of all TDS deductions during
the year.

Super saver

Now customers can actually have a combination of a Fixed Deposit

and a Savings or Current Account. With the Super Saver Account from
HDFC Bank. Customer can enjoy an overdraft facility of up to 75% of the
Fixed Deposit funds without breaking the Fixed Deposit or losing interest on
it.
This account has high interest of a Fixed Deposit and the liquidity of
a Savings or Current Account as well.

The Advantages

 Customers get up to a overdraft of maximum of 75% of the principal

Fixed Deposit amount. So neither the customer has to break the
Fixed Deposit nor has to lose interest on it.


 Avail of compound interest on the total amount when customer re-

invest the interest, i.e. rollover of principal plus interest, at the end of
the tenure (month or quarter)
  Higher Returns: The SuperSaver Account allows liquidity against the
fixed deposit without breaking it. The fixed deposit continues to earn
interest while customers have the option of drawing down as and
when he/she require funds. Of course, he/she has to pay interest
only for the period

Interest Rates

 The interest of a Fixed Deposit, which will vary according to the

tenure of deposit
 For withdrawn amount the applicable rate is only 2% over the fixed
deposit rate.
 If the Savings Account has a credit balance, customer will also earn
3.50 % paid into customers account quarterly, on the funds in the
Savings Account.
 Either way, the Super Saver Account ensures to earn a higher
interest rate than with a Regular Savings Account.

Fees

For Overdraft limit, interest charged is only 2% over the deposit rate
only for the period customer uses the money.

Sweep in

The most of having a Fixed Deposit Account linked to a zero

balance Savings Account/Current Account. The Sweep-In facility gives
the high interest rates of a Fixed Deposit and the liquidity of a Savings
Account/Current Account.
So when customer needs funds urgently it is transferred from Fixed
Deposit to the account automatically. This also lessens the possibility of a
cheque being returned due to insufficient funds. The Sweep-In Account
gives this and a host of other benefits

The Advantages

 Fixed Deposits are maintained in units of Re.1/-. If customer requires

funds in Savings Account, the exact amount needed is swept into
Savings Account. Thus minimising interest loss. Further, the amount
swept in earns interest for the tenure that it has completed without
any penalty. The rest of deposit continues to earn the original
interest rate till maturity.
 Customer have the choice of rolling over the principal only or
principal plus interest earned (i.e. re-invest the interest). The
automatic rollover will be for the same tenure, at an interest rate
applicable on the maturity date.



 Customer will avail compound interest on the total amount when

he/she re-invests the interest, i.e. rollover of principal plus interest, at
the end of the tenure (month or quarter).
 Customer can minimise interest loss as Sweep-In is maintained in
units of Re.1. Further, the amount swept in earns interest for the
tenure that it has completed without any penalty. The rest of the
deposit continues to earn the original interest rate till maturity.
 Every time customer open a new deposit for Rs.5000/- or above,
customer can request it to be linked to his/her Sweep-In facility.
 The Sweep-In facility is also available on Current Accounts.
 Customer can link his/her Fixed Deposit to the Current Account.
2.1.5. “Credit card”

HDFC Bank offers the finest payment solutions to help customer

keep up with the changing times, from Debit Cards to Credit Cards, all
internationally valid.
Specifically, the HDFC Bank Credit Cards are available as two
variants, the HDFC Bank International Silver Card and the HDFC Bank
International Gold Card. In addition, if the customer is a resident of
Hyderabad, he/she can get to choose the HDFC Bank eSeva International
Silver card also.
From the best insurance package to the most powerful Rewards
Program and the most attractive discount schemes, customer will find
everything they would naturally expect from HDFC bank. There are many
options from where the customer can choose in which he/she interested
in

 International Gold Card

 International Silver Card
 Health Plus International Credit Card
 eSeva International Silver Card

 International Gold Card

 HDFC Bank introduced International Gold Credit Card, customizing
to suit customer‟s conveniences and make his/her lifestyle a truly
cherishable golden experience.

The features that are offered by this card

o Recognised the world over

o Cash Advance
o Revolving credit facility
o Interest Free Credit Period
o Comprehensive Insurance
o Travel Made Easy
o Global Travel Related Insurance
o International Business Travellers' Club (IBTC) Membership
o Exclusive Airport Lounge Facilities
o Lost Card Liability
o 24-Hour Customer Call Center
o Rewards Program
o Utility Bill Payments Made Easy
o Balance transfer option

 International Silver Card

The HDFC Bank International Silver Credit Card offers the best
features a card can provide along with the conveniences offered by a

bank. Be it low interest balance transfer facility or comprehensive

insurance cover, each of its features will helps to manage finances better
and leave customer free to live a better life.
The benefits

- Balance Transfer at a lower interest rate

- Hassle-free travel
- Utility bill payments made easy
- Repaying loyalty with interest
- Wide acceptance
- Cash at fingertips
- Add-on Cards
- Saving while spending (Reward Points)
- Privileged Pricing on Loans
- Repayments made easy
- No liability on lost card
- Protecting through insurance

 Health Plus International Credit Card

In today's fast paced life...

People generally
o Give priority to their family's health and fitness
o Get their Health Check-ups done regularly

o Worry about the increasing cost of quality health care

HDFC Bank has an answer. "A swipe a day keeps doctor away".
 HDFC Bank introduced Health Plus International Credit Card, in
association with National Insurance Company (NIC), a leading insurance
service provider and in affiliation with MasterCard. The card offers
unparalled features. Be it cashless mediclaim facility, discounts at leading
hospitals, discounts from health and fitness related brands and an add-on
cover facility.

Features

-Cashless Mediclaim
- Discounts at participating hospitals
- Preferred partners for a healthy life

 The HDFC Bank eSeva Credit Card

The HDFC Bank eSeva Credit Card has been designed exclusively
for the residents of Hyderabad.
2.1.6 “Demat Account”

Mutilated certificates, lost certificates, postal delays and counterfeit

shares are a thing of the past. HDFC Bank offers to enter a world of safe,
secure and convenient buying, selling and transacting without suffering
endless paperwork and delays by converting customer‟s securities to
electronic format with the HDFC Bank Demat Account. It's as easy as
opening a bank account.
HDFC Bank provides online access to Demat Account, so that
customer can check holdings using the NetBanking facility.

 The Advantages

o Shorter settlements thereby enhancing liquidity

o No stamp duties on transfer of securities held in demat form.
o No concept of Market Lots.
o Change of name, address, dividend mandate, registration of
power of attorney, transmission etc. can be effected across
companies held in demat form by a single instruction to the
DP.
  Features

o Dematerialisation of Securities
o Settlement of Securities traded on the exchange as well as off
market transactions
o Pledging and Hypothecation of Dematerialised Securities
o Electronic credit in public issue
o Receipt of non-cash benefits in electronic form

After opening a Demat Account with HDFC Bank, and linking it to a

trading and savings account to do online trading with any of the e-brokers
empanelled with HDFC Bank for the facility.

Advantages the customer will be benefited from:

o Personalised instruction book

o Free Demat Account
o Accessing Demat Account over the Internet
o Competitive rates
o Depository gateway for e-broking

In short, HDFC Bank offers a convenient service that enables to

settle trades faster. Special Offer for Existing Savings Account Customers
Only
Anybody can open two types of depository accounts:
o Individual Account
o Corporate Account

Individual Account

An individual account can be opened under following two

categories depending upon the resident status of the applicant(s):
o Resident
o Non Resident

Dematerialisation of Securities

If a person wishes to dematerialise his/her physical securities he/she

needs to:
 Check if the scrip is available for dematerialisation or
not.
 If yes, then he/she has to submit the share certificates
along with a Dematerialisation Request Form ("DRF")
duly signed by all the demat account holders.
 The certificates should be duly cancelled by writing
"Surrendered for Dematerialisation" on them.
How to Transact

Some of the transactions which take place in a demat account are:

 Credit Transactions
 Debit Transactions
Pledging of dematerialised securities

Credit Transactions

Credit can take place in demat account by way of:

 Transfer of securities from the account of a clearing member

(Market Transaction).
 Transfer of securities from the account of another beneficiary (Off
Market Transaction).
 Allotments on public issues directly in demat account.
 Credit of non cash benefits like bonus, rights etc. directly in demat
account.

Debit Transactions

Debit can take place in account by way of:

 Transfer of securities to the account of a clearing member (Market

Transaction).
  Transfer of securities to the account of another beneficiary (Off
Market Transaction).

Pledging of dematerialised securities

The depository system allows customers to pledge securities in

electronic form. There are two parties to any pledge transaction:

 Pledgor is the entity who wants to mark a lien on securities owned

by him.
 Pledgee is the entity in whose favour the lien is marked.

The process for marking pledges works briefly as follows

 Pledgor and the pledgee must have depository accounts.

 Pledgor must initiate the pledge by submitting to us the details of the
securities to be pledged in standard format.
 The pledgee should confirm this request through his DP.

If there is a debit or credit transaction in customers demat

account

An entry in customer‟s monthly transaction cum billing statement as

well as charges which will be debited to his/her linked bank account. The

debits of charges to bank account will be reflected in the quarterly

statement for customers‟ bank account.If customer have submitted a
request for change in address, nomination details, bank details etc.A
Client master list detailing the changes effected at HDFC Bank end or a
letter detailing the additional requirements to be fulfilled in order to enable
us to effect the change.

Statements

 In case customer transact

A transaction cum billing statement at the end of the month in case
there is any transaction in the account during that month.
 In case customer do not transact
A holding statement at the end of every quarter depicting the
holdings in the account as on the last day of the quarter. These statements
are sent even to the account holders who do not have any holding in their
account on the last day of the quarter.
The holding statement will also give the face value of the scripts
held in the account as well as the market rate along with the indicative
value of the portfolio.
2.1.7. “Preferred”

It is for them who think Time is Money. And to manage time and
money well, customer need facilities tailor made to suit their financial
needs. The HDFC Bank Preferred Programme has been designed with
priority customers like them in mind.

Preferred Privileges

 Personal Relationship Manager

As a Preferred customer, customers have their own Relationship

Manager always on call. No more worries or paperwork for them, their
Relationship Manager handles everything for them. Need money in a
hurry? He will rush customers request through. Want guidance on tax
saving instruments? He'll provide customer with all the answers. Whether its
expert opinion on an investment or simply a demand draft made and
delivered to their home, customer can depend on their Relationship
Manager to get the job done promptly.

 Zero Balance Accounts

 Preferred International Debit Card free for life

 Enhanced Limits on Preferred Debit Card

Preferred Debit Card, customer will be benefited from higher

spending limit of up to Rs.50,000 a day as well as enhanced cash
withdrawal limit of Rs.25,000 a day at ATMs.
 Free Gold Credit Card
 Befitting the customers‟ status, customer will be issued an HDFC
Bank Gold Credit Card, with the first year's annual fee totally waived. The
fee chargeable from second year will be Rs.1, 500 as against the normal
fee of Rs.2, 000.

 Free PAP Cheque Book

Customer can request for a free PAP cheque book on his/her
Savings or Current account. These cheques will be honored at any HDFC
Bank branch across the country, so no need to send demand drafts to
cities where HDFC Bank has branches.
 50% Discount on Locker Charges

 Free Cash Delivery

Customer can have up to Rs. 1 lakh in cash delivered at their
doorstep
 Preferential Forex Rates
 Combined Monthly Statements
 Free Standing Instruction
 Free Demat Account
A Demat Account is absolutely free of charge, with the added
convenience and protection of customers‟ securities from damage that
this electronic facility ensures.

 Loans at Preferential Rates

Customer can enjoy preferential rates on all asset products like
Auto Loans, Personal Loans and Loans against Securities.
 Cheque Pick up Facility
 Annual Service Charge Waiver

E-Age Advantages
  Free International Debit Card

 BillPay Facility
Customers do not have to stand up in the queue to pay the utility
bills by simply calling PhoneBanking or use HDFC Bank NetBanking facility
 Free Mobile Baking

 Free NetBanking
Carrying out almost all routine banking transactions over the
Internet from computer or laptop at any time, from anywhere – all backed
by absolute security.
 Free 24-hour Phone Banking
With just a call and by following a few simple instructions, Phone
Banking lets handle most of customers‟ bank-related needs.
2.2. “Investment choices provided
by HDFC Bank”

Equity Advice

Advice on direct equity is through research reports based on

fundamental and technical parameters across individual stocks / model
portfolio / customised client portfolios.
Research recommendations are generated by HDFC Bank Equity
Research team and cover different risk parameters and time horizons.
HDFC Bank coverage includes comprehensive reports and regular
updates.

 Daily AAG
The newsletter 'At A Glance' (AAG) focuses on daily
equities and events with coverage across equity, debt and
Forex markets.
 Market Impact
Fundamental analysis of companies and results

 Daily Market Pulse

A technical analysis and interpretation of charts
 Company Research Reports
Reports and views on stocks and recommendations
across different time frames
  Stock Ideas
These recommendations are then aggregated into different model
portfolios for reference across

 Conservative portfolio - For long term investors

 Aggressive portfolio - For medium term investors
 Super aggressive - For short term investors

Govt. of India Savings Bonds

These bonds are issued by the Reserve Bank of India (RBI) on the
behalf of the Govt. of India (GOI). GOI Bonds are available in two coupon
rates -

 6.5% Savings Bonds 2003 - These bonds carry an interest of 6.5%

which is tax-free.

 8%Savings Bonds 2003 - These bonds carry an interest of 8%

which is taxable.

An investor can receive interest either on a half-yearly basis or on

maturity. There is no limit on the investment amount in these bonds. The
maturity period of the 8 % Savings bond (taxable) is six years and for
the 6.5 % Savings bond (tax-free) is five years.
Other Bonds

Investment options are also available in REC, NHAI and SIDBI in

select centres and select locations
 6.50% Savings Bonds Scheme 2003
The government after the presentation of Union Budget 2003
suspended the sale of 8% Relief bonds and 7% Savings Bonds. Recently,
the government has announced the revised rates and features for the
6.50% Savings Bonds Scheme 2003. The interest on the bonds will be
exempt from Income Tax.

Features

 No upper limit for investment

The tenure of the bond is 5 years from the date of issue. Bonds will
bear interest @6.50% P.A. and will be payable half-yearly. Bonds shall not
be transferable or tradable or eligible as collateral for loans from Bank,
Financial Institutions, etc. except by way of a gift.
 Bonds issued in one form will not be eligible for conversion into the
other form.
 Both cumulative and non-cumulative options are available.
 Bonds will be issued for a minimum amount of Rs 1000 / -.
 Nomination facility is available.

 Provision for Premature Encashment

 The bonds can be encashed prematurely after a minimum lock-in
period of 3 yrs from the date of issue or at any time after the 6th half-year,

8% Savings (Taxable) Bonds Scheme 2003

The government launched 8% Savings (Taxable) Bonds Scheme

2003 from 21st April 2003. These bonds are taxable in the hands of the
investor. The features of the scheme are as below:

 NRI cannot invest in this Bonds

 No upper limit for investment

Bonds will bear interest @8.00% P.A. and will be payable half-yearly.
The tenure of the bond is 6 years from the date of issue. No interest would
accrue after the maturity of the bond.
Tax will be deducted at source while making payment of interest on
non-cumulative bonds. Also, in case of cumulative bonds tax on interest
portfolio of the maturity value will be deducted at source at the time of
payment of maturity proceeds.
However, tax will not deducted while making payment of
interest/maturity proceeds to institutions that have obtained exemption
from tax under the relevant provisions of the I.T. Act.

 Bonds will be issued in the form of Bond Ledger Account.

 Both cumulative and non-cumulative options are available.

 Bonds will be issued for a minimum amount of Rs 1000 / -.

 Nomination facility is available.
Mutual funds

Mutual funds are funds that pool the money of several investors to
buy a variety of securities. Mutual Funds could be Equity funds or Debt
funds or a combination of the two.
Various benefits of investing in mutual funds include risk
diversification, professional management, tax benefits and the ability to
choose from a wide basket of funds.
Funds are selected on quantitative parameters like volatility, fund
churn, risk adjusted returns, rolling return coupled with a qualitative
analysis of fund performance and investment styles through regular
interactions / due diligence processes with fund managers.

What is a Mutual Fund?

A Mutual Fund is a body corporate registered with the Securities and

Exchange Board of India (SEBI) that pools up the money from individual /
corporate investors and invests the same on behalf of the investors /unit
holders, in equity shares, Government securities, Bonds, Call money
markets etc., and distributes the profits. In other words, a mutual fund
allows an investor to indirectly take a position in a basket of assets.

Insurance
 As part of the HDFC Bank endeavor to offer a complete range of
financial services, customers can avail of insurance plans from HDFC
Standard Life Insurance through any of HDFC Bank branches.

Products Offered:

 Savings Schemes : With profits Endowment Assurance / With

Profits Moneyback plan
 Whole Life Plans

 Risk Covers : Term Assurance / Loan Term Assurance

 Retirement Schemes : Personal Pension Plan
 Children Plan

Endowment Assurance

It is a participating (with profits) insurance plan that offers the

following features:

 Provides financial support to the family by way of a lump sum

payment in case of the unfortunate death of the life assured within
the term of the policy
 Provides a lump sum payment to the life assured on survival up to
maturity The lump sum mentioned is the basic sum assured plus any
bonus additions.

Financial Planning

The Financial Planning service is offered as an option to long term

investors. The portfolio is advised on in a passive investment style with the
asset category as mutual funds. The planner is suitable for investors who
wish to take a asset allocation based, long term investment outlook,
ignoring the short term volatilities of financial markets.

Financial Planning takes into account

 Desired asset allocation, risk profile and return expectations

 Building cash flows correlating all expenses and income. Inflation
and outflows due to loans are considering in building the financial
plan
 Future goals like retirement, housing and children's education /
marriage or other needs
 The client would be offered the following
 Financial Plan indicating the required savings to meet the desired
goals.
 Asset Allocation
“Special training undertaken”

In between the OJT period I have been assigned anorher task of

implementing 5S in the bank.

Feature of the scheme

Savings 5 Plan:

The plan is ideally suited for the over cautious investor with a
medium to long term investment horizon. Under normal circumstances,
the plan will have a marginal equity exposure of 5% of the portfolio. The
balance component would be invested in high quality debt instruments.
The strategy is designed to provide high safety with low volatility. High
proportion of debt in the portfolio provides safety, whereas limited
exposure to equity insulates the capital in long term. The debt portion in
the Savings 5 plan would be used for generating the core returns through
a diversified portfolio of high quality debt instruments. Active maturity
management would seek to achieve superior risk adjusted returns. The
equity component would be managed through a compact portfolio of
value plus growth stocks.

Wealth 25 Plan:

The conservative investor with a slightly higher appetite for equity

exposure should consider investing in the Wealth 25 plan. This plan, under
normal circumstances, will have a higher equity exposure of 25% of the
 portfolio. The balance component would be invested in high quality
debt instruments. The debt portion in the Wealth 25 plan would have a
diversified portfolio of high quality debt with active maturity management
to ensure superior risk adjusted returns. The equity portion will comprise a
well diversified portfolio of fundamentally strong growth stocks. In normal
circumstances, the beta of the equity portion of the Wealth 25 plan would
be maintained at a higher level than that of the Savings 5 plan.

A Summary:

Birla MIP II (An open-ended fund. Monthly income is not assured

and is subject to the availability of distributable surplus) offers different
investment options to address various risk profiles. Conservative investors
with long term horizon would find these plans suitable to meet their future
needs.
“Financial Performance”

The overall performance during the financial year 2005-06 remained

healthy with total net revenues (net interest income plus other income)
increasing by 41.2% to Rs.7817.9 crores from Rs.3287.2 crores in 2003-04.
The revenue growth was driven principally by an increase of 62.8% in net
interest income. The increase in net interest income was a result of a 26.6%
growth in total interest income (to Rs.2548.9 crores) while total interest
expense remained almost flat at Rs. 1211.1 crores (as against Rs.1192.0
crores in the previous year). The average balance sheet size increased by
37.3 % . Though average yields on earning assets dropped by around 41
basis points given the general decline in interest rates and continued
competition in both the wholesale and retail asset businesses, this was
more than offset by a reduction of about 150 basis points in the average
costs of deposits. The deposit cost reduction was driven by a decline in
costs of term deposits and a higher proportion of average current and
savings accounts balances in relation to average total deposits.
The other income (non-interest revenue) has three main
components: Commissions, Profit/Income on foreign exchange &
derivatives and Profit on sale of investments. The first two are largely
related to customer transactions while the last stream is linked primarily to
the gains from trading and holding of government securities for statutory
reserve requirements. In 2003-04, Commission income increased by 35.5%
to Rs.320.4 crores with the main drivers being retail banking fees on
 debit/credit cards & point-of-sale (POS) terminals, transactional
charges/fees on deposit and depository (custody) accounts and
commissions from third party distribution. Commissions from cash
management services also grew at a healthy pace due to higher
volumes. Profits on sale of investments (net of revaluation losses)
decreased from Rs.130.3 crores in 2002-03 to Rs.26.9 crores during 2003-
04. The reduction is due to lower trading gains on government securities
and is net of losses on debt mutual fund units post receipt of dividends.
Foreign exchange and derivatives revenues increased by 35.1% to
Rs.128.9 crores in 2003-04, driven primarily by higher trade flows and
interest rate & currency risk hedging requirements of our customers.

Operating (non-interest) expenses increased from Rs.577.1 crores in

2002-03 to Rs.810.0 crores in 2003-04. Despite a significant increase in
investments relating to new branches, ATMs, geographical expansion of
retail loan products, etc., operating expenses as a proportion of net
revenues, declined marginally from 44.8% in 2002-03 to 44.6% in 2003- 04.
Staff expenses accounted for 25.2% of non interest expenses in 2003-04 as
against 26.3% in the previous year, despite an increase in staff strength
from 4791 to 5423. Loan loss provisions increased from Rs.88.4 crores to
Rs.178.3 crores in 2003-04, primarily driven by an increase in general loan
loss provisions for retail loan product programs and some increase in
specific loan loss provisions as the Bank moved from the “180 day
overdue” norm to the “90 day overdue” norm for recognizing non-

performing assets. Provisions for amortization of investments were

Rs.93.2 crores, principally due to the amortization of premium for SLR
(Statutory Liquidity Ratio) investments in the “held to maturity” category.
Net profit increased by 31.4 % from Rs. 387.6 crores in 2002-03 to Rs.509.5
crores in 2003-04. Return on average net worth was 20.1%, up from the
previous year figure of 18.1%. The Bank‟s basic earning per share
increased from Rs. 13.75 to Rs. 17.95 per equity share. The diluted earnings
were Rs. 16.55 per equity share in 2003-04.
Savings account deposits, which are core to the Bank‟s strategy for
building stable, low cost sources of funds and reflect the strength of the
retail liabilities franchise, increased by 67.4% from Rs. 4663 crores to
Rs.7804 crores. Net Advances grew by 51.0% to Rs. 17745 crores. This was
primarily driven by a growth of 112.9% in retail advances (including car
loans, personal loans, two-wheeler loans, commercial vehicle loans etc.
but excluding investment in securitised paper) to Rs. 7325 crores, and an
increase of 25.7% in wholesale advances to Rs. 10819 crores. The mix of
the Bank‟s total advances as of March 31, 2005 is therefore, 60%
wholesale and 40% retail. The Bank‟s core customer assets (advances and
credit substitutes like commercial paper, corporate debentures,
preference shares, etc.) increased from Rs.14450 crores in March 2004 to
Rs.18858 crores in March 2005. In addition, the Bank held Rs. 3522 crores of
investments and loans bought in through the securitization route where the
underlying assets were commercial vehicle, car loan and mortgage
receivables and collateralised loan obligations. Total customer assets

(including securitisation) were therefore Rs.22379 crores as of March

31, 2004. Total balance sheet size grew by 39.1% from Rs.30424 crores to
Rs.42307 crores.
 Other performance
The growth of HDFC Bank in different sectors in comparison to the previous
year are can be seen by seeing the below graphs

Dividend per share(Rs.)

3.5
3
2.5

2002 2003 2004

 Balancesheet size (Rs.in crores)

42307
30424
23819

2002 2003 2004

Advances(Rs.in crores)

17745
11754
6814

20002 2003 2004

Retail assets:profitable growth(Rs.in crores)

7325

3441
1430

2002 2003 2004

SavingDeposits(Rs.in crores)

7804
4663
2960

2002 2003 2004

 Avg. saving bal per account(Rs.)

26732
19363 20748

2002 2003 2004

Locations covered

163
122
77

2002 2003 2004

 Branches

312
231
171

2002 2003 2004

ATMs

910
732
479

2002 2003 2004

 People

5673
4791
3742

2002 2003 2004

Debit cards(in lacs)

21
14
8

2002 2003 2004

 Credit cards(in lacs)

5.3

1.8

2003 2004

Point of sale(POS)terminals

26400
21800

6480

2002 2003 2004

 Cost to revenue(%)

44.8 44.6

43.4

2002 2003 2004

Capital adequacy(%)

13.9
11.1 11.7

2002 2003 2004

 Net int margin (Indian GAAP figures)

3.8
3.1 3.2

2002 2003 2004

Deposits(Rs. in crores)

30409
22376
17653

2202 2003 2004

“Ratio analysis”

Some ratios to show the financial strength of HDFC Bank

Capital Adequacy Ratio (Rs. Lacs)

For the year

2005-2006 2004-2005

 Capital (a) 2,229,70 1,985,02

 Capital (b) 1,008,12 341,47

Total Capital (a + b) 3, 237, 82 2, 326, 49

Total Risk weighted assets and contingents 27, 773, 82 20, 917, 71

Capital ratios

 Capital (a) 8.03% 9.49%

 Total capital 11.66% 11.12%

Note 1: Here in capital (a) capital includes paid up capital, statutory

reserve, general Reserve, balance in profit and loss account and
amalgamation reserve. Outstanding deferred tax asset is deducted.
Note 2: capital includes general loan loss reserves, investment fluctuation
reserve and subordinated debt.

Business ratios
For the year
2005-2006 2004-2005

 Interest income as a percentage

of working Funds 7.28% 7.89%
 Net interest income as a percentage
of working funds 3.82% 3.22%
 Non–interest income as a percentage
of working funds 1.37% 1.82%
 Operating profit as a percentage
of working funds 2.56% 2.58%
 Return on assets (average) 1.45% 1.52%
 Business per employee (Rs. lakhs) 8, 66 8, 65
 Profit per employee (Rs. lakhs) 9.39 10.09
 Percentage of net NPA
to customer assets 0.12% 0.26%
 Percentage of net NPA
to net advances 0.16% 0.37%

Note1. Working funds is the daily average of total assets during the year.
Note2. Operating profit = (Interest income + other income – interest
expense – operating expense – depreciation on investments-profit / (loss)
on sale of Fixed Assets)
Note3. “Business” is the total of net advances and deposits.

Note4. Productivity ratios are based on average employee numbers.

Note5. Net NPAs are non performing assets net of interest in suspense,
specific provisions and ECGC claims received.

Note6. Customer assets include gross advances (but net of specific

provisions), creditsubstitutes like debentures, commercial paper, loans
and investments in securitised assets brought in and cost of assets leased
out.

Note7. Net advances are equivalent to gross advances net of bills

rediscounted, specificloan loss provisions, interest in suspense and ECGC

claims received.
Other ratios
For the year
2005-2006 2004-2005
o Earning per share (Rs.) 13.75 17.95
o Return on avg. net worth 18.10% 20.14%
o Dividend per share (Rs.) 3.00 3.50
o Dividend payout ratio 24.72% 22.15%
o Price earning ratio 17.06% 21.10%

Note1:Earning per share (Rs.) for the year 1999-2000 was 5.93, 2000-2001
8.64, and 2001-2002 11.01.

Note2: Return on avg. net worth for the year 1999-2000 was 29.00%, 2000-
2001 24.53%, and 2001-2002 18.30%.

Note3: Dividend per share (Rs.) for the year 1999-2000 was 1.60, 2000-
2001 2.00, and 2001-2002 2.50.

Note4: Dividend payout ratio for the year 1999-2000 was 29.96%, 2000-
2001 25.55%, and 2001-2002 23.68%.

Note5: Price earning ratio for the year 1999-2000 was 43.37%, 2000-2001
26.43%, and 2001-2002 21.50%.
Note6: Book value per share (Rs.) as at March 31 1999-2000 was 30.90,
2000-2001 37.50, 2001-2002 69.00, 2002-2003 79.60 and 2003-2004 94.52

Note7: Market price per share (Rs.) as at March 31 1999-2000 was 257.20,
2000-2001 228.35, 2001-2002 236.60, 2002-2003 234.55 and 2003-2004
378.75
“A rupee comes where and spends
where”

Rupee earned Int from advances

Int from investments

10 1 4 Other int income

4 37
Commission ex change
& brokerage
Profit on sale of
investments
44 Other income
 Rupee spent

22 Interest expense
35 Operating expense
3
Provisions
Tax
6
10 Dividend
24 Transfer to reserves
4.2. “SWOT analysis”
Strengths:

 Reputation (it carries the reputation of the HDFC home loan)

 Good value added customer service
 Good space management inside the bank (I think it is the best in
comparison to other banks)
 All branches are situated in good, crowded & business locality
 Motivated sales staff
 No charge on cash deposit of any denominations
 No charge on the on the no of transactions at bank or at ATMs
 Dedicated employees to answer all the queries and solve all the
problems of the customers and general public

Weakness:

 Lack of sufficient no. of staffs

 Lack of utilisation of brand value
 Lack of creating awareness among prospective customers
 Third party cash deposit is discouraged
 No of years existence (in the state Orissa)
 Lack of proper advertisement in printing and electronic medias
 Not a proper location management(for Cuttack it is situated next to
ICICI bank)
 Less no of ATMs mainly in the Orissa as compared to ICICI, UTI, SBI
 Mainly targeting to the urban people not to the rural areas

 Mainly focusing to the business man in my thought

  Every bank not giving all the facilities provided by the HDFC Bank.

Opportunities:

 Can target to the small investors not only in urban areas but also to
the rural areas
 Can provide a zero balance savings account to the customers
 Can provide the interest on deposits as equal to the interest
provided by the co-operatives
 Can trap the students segment by giving a very low AQB or zero
balance
 HDFC Bank can have a professional savings account with a the
benefits like
o Free registration in reputed consultancies
o Easy personal loan ,car loan to the account holders
o A demat accounts free with every current & savings
account(without any registration fee and stamp fee)
o Free member ship facilities to the rated clubs in India

Threats
  Nationalised banks like SBI ,BOI, UCO bank etc coming up with the
facilities provided by the private banks like HDFC Bank ,ICICI bank
etc

 Less no of branches as compared to the others

 Less no of staffs in the branches,As third party cash deposits is not
accepted there is a fear that HDFC Bank may loose a good number
of customer

Why I have choosed SWOT analysis

SWOT analysis is a basic, straightforward model that provides

direction and serves as a basis for the development of marketing plans. It
accomplishes this by assessing an organizations strengths (what an
organization can do) and weaknesses (what an organization cannot do)
in addition to opportunities (potential favorable conditions for an
organization) and threats (potential unfavorable conditions for an
organization). SWOT analysis is an important step in planning and its value
is often underestimated despite the simplicity in creation. The role of SWOT
analysis is to take the information from the environmental analysis and
separate it into internal issues (strengths and weaknesses) and external
issues (opportunities and threats). Once this is completed, SWOT analysis

determines if the information indicates something that will assist the

firm in accomplishing its objectives (a strength or opportunity), or if it
indicates an obstacle that must be overcome or minimized to achieve
desired results (weakness or threat).The steps that I follow to make the
SWOT analysis of HDFC Bank are:

 Be realistic about the strengths and weaknesses of HDFC Bank.

 Analysis should distinguish between where HDFC Bank is today,
and where it could be in the futures. Be specific. Avoid grey
areas.
 Always analyse in context to competitor i.e. better then or worse
than competitor.
 Keep SWOT short and simple.
 SWOT is subjective.
4.3. “A short comparison with ICICI bank”

As a private sector bank HDFC Bank has a no of competitors in the market

but I think that and realized while experiencing at HDFC Bank ICICI is the
main competitor of HDFC Bank so I made a small comparison of these two
bank there are other many differences but what I think important I have
placed them in this report

HDFC Bank ICICI bank

Current account
Types Types

 Regular  Standard

 Premium  Classic

 Trade  Premium

 Plus  Gold
 Platinum

Benefits Benefits

 DD is free in Trade and Plus  DD is free with the multiplier

account facility

 In Regular 50 cheque leaves  Cheque leaves not free

free and in others unlimited

 No debit card charge for the  Charge Rs. 99 for the debit

first year card from the beginning

 Free fund transfer up to 1  Free fund transfer up to 80

crore lakhs

Savings account
Types
Types

 Regular
 Senior citizen
 Freedom salary
 Kids
 Salary
 Professional
 Kids advantage
 Salary
 Pension account
 Regular savings
  Freedom savings account

Benefits Benefits

 No debit card charge for the  Charge Rs. 99 for the debit
first year card from the beginning
 for the Kid advantage  For the kid no ATM card is
account ATM card is issued issued
above 7 years
 Minimum FD required to open  Minimum FD required to open
a kid account is 25,000 a kid account is 10,000
 No charge for the no of  There is charge of Rs.25 per
transactions at ATM transaction above 6
transactions

Fixed deposits
Types
 super saver
 sweep in

Benefits Benefits

 75% of the fixed deposits can  90 % of the FD can be taken

be taken as loan as loan

 Sweep in facility from the FD

to savings account
 Less paper work  Loan facility on FD without
any paper work

 0.25% to 0.50% extra for the  1% extra for the deposits by

 deposits by senior citizens senior citizens

Others

 Banking hours is 10 am to 4  Banking hours is 8 am to 8

pm pm

 Handling all types of mutual  Handling limited types of

funds mutual funds

 Facility of seeing balance of  No such facility is there

other banks with the HDFC

Bank
 Equity choices and  No such facility is there

investment assistance
provided
 More spacious  Less spacious
“My philosophy on code
of corporate governance
of HDFC Bank”
The HDFC Bank believes in adopting and adhering to the best corporate

governance practices and continuously benchmarking itself against each

such practice in the industry. The Bank understands and respects its

fiduciary role and responsibility to shareholders and strives hard to meet

their expectations. I believe that the best board practices, transparent

disclosures and shareholder empowerment are necessary for creating

shareholder value.

The Bank has infused the philosophy of corporate governance in all

its activities. The philosophy on corporate governance is an important tool

for shareholder protection and maximization of their long term values. The

cardinal principles such as independence, accountability, responsibility,

transparency, fair and timely disclosures, credibility etc. serve as the

means for implementing the philosophy of corporate governance in letter

and in spirit.
It is not simply enough to identify the strengths, weaknesses, opportunities,
and threats of a company. In applying the SWOT analysis it is necessary to
minimize or avoid both weaknesses and threats of HDFC Bank.
Weaknesses should be looked at in order to convert them into strengths.
Likewise, threats should be converted into opportunities. Lastly, strengths
and opportunities should be matched to optimize the potential of HDFC
Bank. Applying SWOT in this fashion can obtain leverage for HDFC Bank.

The survey throws light on various issues that the customer faces in
the market. I also described the various strategies should be adopted.
Analyzing the findings it can be said that good customer relationship
raises awareness among the people. Many customers are not fully
satisfied with the quality and improvements should be made to satisfy
them and then march ahead to scale the height of excellence.

There are tough competitions and thus there exists a lot of room to
improve so as to become the market leader from all aspects. The only
thing is the making of and implementation of the proper strategy in the
best effective way. By understanding the steps of competitors before they
were implemented is the way to lead the market.
Recommendations

 More no of ATMs in the city. So the no of ATMs should be

increased to 3-4 in localities like Choudhury bazaar, Railway
station, Link road, and Pithapur etc.
 More aggressive sale is needed to be undertaken for professors,
lecturers, and staff members who are the best customers for
savings account. This is possible through existing customer
contact and database.
 Special students‟ savings account with AQB very less amount or
nil should be started.
 Savings account for working professionals and self employed
young men should start with facilities like free registration in top
business consultancies, job consultancies, hassle-free personal
loans, free demat account and discounted membership in some
clubs.
 Targeting general public having income above 2 lakhs. Choose
private sector banks, so they should be targeted differently.
 Ensure the best after sale service by replacing the faulty ones
immediately on getting the complaint.
 The unique selling benefit of HDFC terminal machine is low
monthly rental and lowest commission rate. So DMEs (Direct



 Marketing Executives) should be sent to probable customers to
convince them.
 Announcing an award for the business house who records the
highest turnover through the EDC terminal machines.
 A group promotional activity aiming, encouraging card holder to
use their cards to its fullest should me undertaken.
 HDFC bank should approach some of the top petroleum
companies to accept sales through debit and credit cards. A
very low commission rate may be charged from the petroleum
company just to boost the card use.
 HDFC Cuttack branch should be provided with adequate
authority to provide cash credits to customers.
 Bank should employ an employee of the competitor bank and
try for BT (bank transfer) of the loan provided by other banks.
 Regular visit to new setups in Cuttack as well as contacting the
business houses through reference of the existing customers by
bank manager himself.
 Awareness through road shows in regular intervals and on
special occasions like Bali yatra, Durga pooja.
 Bill boards focusing the no charge criteria for cash deposit of any
denominations, and fund transfer limits etc in localities like
Chandini Chowk, Buxi bazaar, Pithapur , Badambadi etc.
 The formality for installation of EDC terminals should be made
easy and liberal that almost all the business segments ranging

 from restaurants to stationary shops to variety stores, all should

be targeted.
 The shops having the EDC terminals should be encouraged to
print the same (all type of cards are accepted here) in their
advertisement boards or billboards.
 All the shops having EDC terminals should give some rewards to
those customers buying above a certain limit. This gift may boost
sales.
 With every purchase, card holders be awarded with some credit
points and on the end of every quarter, special gifts should be
given or special discount offers on some items produced by
some company can be given, which will be sponsored by the
producer, the shopkeeper and banker.
 The bank should not charge for the debit cards and should
charge a negligible amount or a very less amount than the other
 service providers.