HDFC Bank Industrial Report


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this is a basic industrial project on hdfc bank made by me in BBA

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HDFC Bank Industrial Report

  1. 1. Index 02 02 General Information Products 03 Marketing 22 04 Human Rescores 29 05 Finance 35 06 S.W.O.T. 39 07 Conclusion 42 08 Bibliography 43 01 13 1
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  4. 4.  The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994.  The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995.  HDFC Bank is the fifth or sixth largest bank in India by assets and the first largest bank by market capitalization as of November 1, 2012.  The bank was promoted by the Housing Development Finance Corporation, a premier housing finance company of India. Maximized As on December 2012, HDFC Bank has 2,776 branches and 10,490 ATMs, in 1,399 cities in India, and all branches of the bank are linked on an online real-time basis.  As of December 2012 the bank had balance sheet size of Rs. 3837 billion. For the fiscal year 2011-12, the bank has reported net profit of 5167.07 cr (US$950 million), up 31.6% from the previous fiscal. 4
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  6. 6. HDFC Bank commenced operations as Scheduled Commercial Bank in January 1995. If ever there was a man with a mission it was Hasmukhbhai Parekh, Founder and Chairman-Emeritus, of HDFC Group. HDFC BANK LTD was amongst the first to set up a bank in the private sector. The bank was incorporated on 30th August 1994 in the name of „HDFC Bank Limited‟, with its registered office in Mumbai. It commenced operations as a Scheduled Commercial Bank on 16th January 1995. The bank has grown consistently and is now amongst the leading players in the industry. HDFC is India's premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1977, the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader in mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. With its experience in the financial markets, a strong market reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment In a milestone transaction in the Indian banking industry, Times Bank was merged with HDFC Bank Ltd., effective February 26, 2000 6
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  9. 9. To be a world class Indian bank by adopting a single minded focus on service excellence and product quality. 9
  10. 10. Headquarter 10
  11. 11. Introduction to Branch  Location: Savar Kundla Savar Kundla is a city and a municipality in Amreli district, Gujarat, India. It is a twin city that formed when the cities of Savar and Kundla merged. Savar Kundla is also the name of a taluka in Amreli district. There are 84 villages in this taluka, including Gadhakda, Ramgadh, Vijpadi, Vanda,Juna Savar, Bhuva, Badhada, Vijyanagar, Likhala, Mota Zinzuda, Nana Zinzuda, Vadal, Khadsali, Nesadi, Kanatalav, Oliya, Charkhadiya, Gordka, Bhokarva, Bhenkara, Navagam, Luvara, Dhajdi, Jikiyali, and others. SavarKundla is a sleepy town of Amreli district.The town is divided on two sides by Savar river which is not flowing for the last 20 years.The water is soil,however,is very rich with iron content and it is very reflected in the hard working nature of people dwelling there,according to Shyamubhai Parikh of Sanskar Mandir trust.In fact Savarkundla has a name for its khadi related Gandhi activities and Shyamu-bhai has inherited his traits from his father and also a father figure of savarkundla late Lallubhai Sheth.  Establishment: o 20/8/09 HDFC was established in Savar kundla with 8 employees 11
  12. 12. Branch Infrastructure Branch is focalized with 21st century infrastructure and latest technology in the banking sector. It is centralized with air condition and networked with the main server and the records are maintained very securely but software and the security structure are to be remained as confidential. Even some things remaining confidential there are some security measures common in every branch infrastructure of HDFC BANK. Every branch is secured with cameras and total security and connected to their own server plus advanced security software‟s which will report to the police and server in 04 seconds if the security is being compromised or it senses the breach in security for this some special gadgets are installed in branch premises. 12
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  14. 14. Features and Benefits Free local collections through cheque and Fund transfer Free Local and anywhere cheque payment facility Convenient Inter-city Banking Features and Benefits Access your account across a wide network of branches and ATMs Avail of convenient services like Net Banking and Mobile Banking 14
  15. 15. Safe Deposit Locker What are the Features? Wide availability of locker locations and sizes Access to safe-deposit lockers at all branches, no matter where your account is held. Lockers are rented for one year, and rent is payable in advance. Features: Zero Balance Savings account Free payable at par cheque book Free InstaAlert and BillPay facility 15
  16. 16. CARDS Debit cards Chip technology integrated card Rs 1 cash back (upto Rs. 750/month) for every Rs 100 spent Enjoy lifestyle, dining and events privileges Rs 1 cash back (upto Rs. 750/month) for every Rs 100 spent 16
  17. 17. Credit cards 1 Base Fare Waived JetAirways Ticket and upto 10,000 JPMiles 3X JPMIles for Ticket Booking on & 17
  18. 18. LOANS Home loan Why choose this product? 1 Flexible repayment options 2 Added security with Loan Cover Term Assurance Plan (LCTAP) 3 Automated Repayment of Home Loan EMIs 4 In-house scrutiny of property documents Car loan Why chose these product? Covers the widest range of cars and multi-utility vehicles in India Borrow up to 3 - 6 times your annual income 18
  19. 19. Personal loan Super fast application processing and disbursal Service at your doorstep No guarantor/security/collateral required 19
  20. 20. Insurance 20
  21. 21. Life Insurance Secure your family‟s future in quick, easy steps Get a life cover online upto 10 crore at nominal cost Enjoy tax benefits on premium upto 1 lakh Home Insurance HDFC Home insurance Protection of all your property and its contents priceless possessions and property in a single policy. Minimum documentation is required for this policy. 21
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  23. 23.  HDFC being the India‟s leading bank adopts different ways of marketing with respect to the costumers they want to reach for a specific product some of the ways of marketing are as follows.  Most of the marketing is done through the T.V. commercials on the national Television though there are many other ways of marketing at local level or at the regional level. 23
  24. 24. Print Ads: Print ads are the most relevant source of marketing since a long time the bank can reach numerous people by this way of marketing. Print ads are costly way of advertising but it surely contributes in catching the attraction of the costumer 24
  25. 25. Paint ads: Paint ads are the new innovative concept that is well developing in the India. As it involves two parties over the one who has the holdings or acquisition to the shop, huts, and wall boundaries and second comes the advertiser .the simple funda of these is that the person will get his house painted for free plus some monetary amounts and in exchange advertiser will make himself reach to even rural areas by painting the huts or small shops on the roadways 25
  26. 26. Direction Board: Direction boards on the various area or to be precise on the famous areas of the cities are kept to guide the people to their destinations and create a good image in the e mind of people with fullfillment of their scocial is the cheap and scocialy benifitable idea of marketing. 26
  27. 27. Board hoardings: Board hoardings on its own branch is the simple idea which relates to the advertisements of the new product on its own acquired land to target the regular customers and promoting the required product and its services it makes new customers and also creates the proper utilization of the land acquired by the bank. 27
  28. 28. Advertisements in local Cable and Newspaper: Branch in order to notify the customers gives the ads in the local T.V. cables to make sure the targeted customers are well aware of the product‟s existence and benefits for them moreover the emphasize is laid on to promotion of product at time of marketing savar kundla has its local newspaper “prakash” published daily for Advertisement it is well reached way of promotion for the branch to reach to local audience. 28
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  30. 30.  Human resource is the most basic need for any organization to survive or even to make its presence felt moreover the working of the organizations is not possible without the personnel.  Branch has 11 employees as per the need of its working and day to day need of its execution.  The company makes most of the recruitment by the campus selection it also makes the procedure of the regular recruitment with a view of hiring experienced employee.  HDFC has a innovative plan for the recruitment of the employees i.e. ‘karo shifharish’ in which branch‟s present employees are making a suggestion to management for getting their near relatives, friends, neighbors appointed as a employee of the bank.  The Recruitment Selection and Placement is done by the Company‟s Human Resource Department they select the people for jobs the selection of an employee is done through the following process: 30
  31. 31. Selection Process Wrriten Exam Gorup Disscussion Personal Interview Training 31
  32. 32. Written Exam: It is the basic and foremost eligibility that a person needs to have that is to pass the written exam with the required criteria. Criteria itself differs according to the designation. Group Discussion: The group discussion examines individual‟s inter personal skills and confidence knowledge attitude decency and vocabulary these examines weather the candidate has the enough general knowledge and the ability to explain that as well or not the individual‟s soft skills are tested here and based on that the further selection is done. Personal Interview: After the one clears group discussion he is interviewed by the officials and the practicality is observed in him clearing the academics and soft skill tests individuals‟ vision grasping power of an individual and personality is examined and put to test here.clearin it the individual becomes a employee of the HDFC BANK. Training: Individual on the base of the academics can be eligible for being a employee but not a banker. For the perfection in the execution of the work delegated to him and his authorities are unknown to him so it is necessary for him to be trained in the business environment and hence training is given to each candidate who have been selected. Perhaps, these is the reason the uniformity decency and perfection is observed in the employees. 32
  33. 33. Branch Hierarchy Branch Manager P.B. Sales P.B. Authorizer Taller Office boy Security guard Welcome desk Gun man 33
  34. 34.  HDFC Bank has total 94,695 employees and has adopted different hexarchy networks in different branches and has been successful in developing itself. And becoming no1 financial institute.  The number of our employees increased from 37,836 as of March 31, 2008 to 52,687 as of March 31, 2009. The growth in the employee base was in line with the growth in the bank‟s businesses and distribution both. Most of employees are located in India  The strong reason behind it I its effective training and job satisfaction of their employees there are many policies for the employees.  HDFC have 2.5% car loan scheme for the employees. In which employee gets a chance to raise the standard of living and also the social status.  HDFC has separate bank accounts with more benefits specially designed for their.  Regular bonus is paid to the employees for the extra work done by them.  Moreover decentralized structure of the working where the employee is appreciated for a good opinions and innovations. 34
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  36. 36.  As on 30th June, 2010 the authorized share capital of the Bank is Rs. 550 corer. The paid-up capital as on said date is Rs. 459,69,07,030/- (45,96,90,703 equity shares of Rs. 10/- each).  The HDFC Group holds 23.63 % of the Bank's equity and about 17.05 % of the equity is held by the ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue). 27.45% of the equity is held by Foreign Institutional Investors (FIIs) and the Bank has about 4, 33,078 shareholders. Capital Revenue US$ 6.487 billion (2012) Operating income US$ 1.451 billion (2012) Profit US$ 978.3 million (2012) Total assets US$ 70.17 billion (2012) Total equity US$ 7.793 billion (2012) 36
  37. 37. Some Financial Rates Bank Rate 8.50% Repo Rate 7.50% Reverse Repo Rate 6.50% CRR 4.21% SLR 24.83% 37
  38. 38. Profits: Profits 2012 2011 2010 2009 2008 Total Income 32,619.76 24,361.72 19,983.52 19,802.89 12,320.38 Total Expenses 27,452.68 20,435.32 17,034.82 17,557.96 10,730.20 Earnings Per Share (Rs) 22.02 84.40 64.42 52.77 44.87 Net Profit for the Year 5,167.09 3,926.40 2,948.70 2,244.94 1,590.1 Particulars 38
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  40. 40. Strengths:  The attrition rate in HDFC is low and it is one of the best places to work in private banking sector  HDFC has lots of awards and recognition, it has received „Best Bank‟ award from various financial rating institutions like Dun and Bradstreet, Financial express, Euro money awards for excellence, Finance Asia country awards etc  HDFC has good financial advisors in terms of guiding customers towards right investments Weakness:  HDFC bank doesn‟t have strong presence in Rural areas, where as ICICI bank its direct competitor is expanding in rural market  HDFC cannot enjoy first mover advantage in rural areas. Rural people are hard core loyal in terms of banking services.  HDFC lacks in aggressive marketing strategies like ICICI  The bank focuses mostly on high end clients  Some of the bank‟s product categories lack in performance and doesn‟t have reach in the market  The share prices of HDFC are often fluctuating causing uncertainty for the investors 40
  41. 41. Opportunities:  HDFC bank has better asset quality parameters over government banks, hence the profit growth is likely to increase  The companies in large and SME are growing at very fast pace. HDFC has good reputation in terms of maintaining corporate salary accounts  HDFC bank has improved it‟s bad debts portfolio and the recovery of bad debts are high when compared to government banks  HDFC has very good opportunities in abroad  Greater scope for acquisitions and strategic alliances due to strong financial position Threats:  HDFC‟s nonperforming assets (NPA) increased from 0.18 % to 0.20%. Though it is a slight variation it‟s not a good sign for the financial health of the bank  The non banking financial companies and new age banks are increasing in India  The HDFC is not able to expand its market share as ICICI imposes major threat  The government banks are trying to modernize to compete with private banks  RBI has opened up to 74% for foreign banks to invest in Indian market 41
  42. 42. Conclusion 42
  43. 43.  HDFC BANK first and most successful private financial institute as it high level of ethical and professional and commitment towards enhancing investor‟s interest.  HDFC stands on its mission & vision statements not on the papers but in the activities and practices  One of the core reason behind its tremendous success is that It has the highly motivated work force and is loyal to the company and its status  HDFC BANK has variety of products and services that is set up for the maximum development of the costumers.  Online banking services and detailed information to the products are listed over its site and very advanced technology is adopted in every branch. 43
  44. 44. Bibliography 44