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 RBI's liberalization of the Indian Banking Industry in 1994. The presentation analysing Business Strategy, Porter's Five Force Model analysis, SWOT analysis of HDFC.

1. Submitted by:
Jobin George (68)
Joe Prakash V.S (69)
Joseph Dominic (70)
Jyoti Dixit (71)

2. INTRODUCTION
• The Housing Development Finance Corporation Limited
(HDFC) was amongst the first to receive an 'in principle'
approval from the Reserve Bank of India (RBI) to set up a
bank in the private sector, as part of RBI's liberalization of
the Indian Banking Industry in 1994.
• HDFC Bank Limited is based in Mumbai, Maharashtra
that was incorporated in August 1994.
• It is the largest bank in India by market capitalization as of
February 2016.
• As of June 30, 2016, the Bank’s distribution network was at
4,541 branches and 12,013 ATMs.

3. • Times Bank Limited (owned by Bennett, Coleman &
Co./The Times Group) was merged with HDFC Bank Ltd.,
on February 26, 2000. This was the first merger of two
private banks in India.
• On May 23, 2008 HDFC Bank acquired Centurion Bank
of Punjab taking its total branches to more than 1,000.
• HDFC Bank was the first bank in India to launch an
International Debit Card in association with VISA (Visa
Electron) and issues the Master Card Maestro debit card
as well.
• It was ranked 69th in 2016 BrandZTM Top 100 Most
Valuable Global Brands.

4. VISION & MISSION
• Vision
HDFC Bank is a young and dynamic bank, with a youthful and
enthusiastic team determined to accomplish the vision of becoming a
world-class Indian bank.
• Mission
HDFC mission is to be “World Class Indian Bank", benchmarking
ourselves against international standards and best practices in terms of
product offerings, technology, service levels, risk management and audit
& compliance.
The objective is to build sound customer franchises across distinct
businesses so as to be a preferred provider of banking services for target
retail and wholesale customer segments, and to achieve a healthy growth
in profitability, consistent with the Bank's risk appetite. They are
committed to do this while ensuring the highest levels of ethical
standards, professional integrity, corporate governance and regulatory
compliance.

5. BUSINESS STRATEGY
• Increasing market share in India’s expanding banking and
financial services industry.
• Disciplined growth strategy focusing on quality.
• Delivering high quality customer service.
• Delivering more products to more customers and to control
operating costs
• Maintaining current high standards for asset quality
through disciplined credit risk management.
• Develop innovative products and services that attract
targeted customers and address inefficiencies in the Indian
financial sector.
• Focus on high earnings growth with low volatility.

6. MICHAEL PORTER’S FIVE
FORCES MODEL

7. PORTER’S 5 FORCES MODEL ANALYSIS
ON HDFC
FIVE FORCES HIGH/ MEDIUM/
LOW
REMARK
Threat of new entrants Low Permission should be granted
from RBI, which is not easy.
There was many political and
legal issue. And the early
investment was very
high.
Bargaining power of
customers
Medium Switching cost is low but
customer’s know that every
bank provide similarly the
same service. And HDFC
maintains good customer
service.

8. FIVE FORCE HIGH/MEDIUM/
LOW
REMARK
Bargaining
power of
Suppliers
Low In bank industry there is no such
suppliers.
Threat of
Substitutes
High There are many public and private bank
in the Market. Post office provide some
of the services which bank provides.
Many private firms provide easy loan
scheme to attract the customers. People
also started investing their money
instead of saving them like stock
market, mutual funds , property etc.
Degree of
Rivalry
High Large numbers of public and private
bank and market growth rate is also
high. The switching cost is also very
low and the services provide by all the
bank are the same.

9. SWOT ANALYSIS OF HDFC
Strengths
• ‡One of the leading new age private sector bank
• HDFC Bank has about 4,541 branches and 2,013 ATMs, across
2,587 cities in India,
• Huge employee base i.e. more than 87,555 employees and low
attrition rate.
• ATM card is compatible with all domestic and international
Visa/Master card, Visa Electron/ Maestro, etc.
• Large collaborations with corporate for employee salary
accounts

10. Weaknesses
• Rural penetration is low.
• Lesser no. of branches when compared with its competitors.
• Lacks in aggressive marketing strategies.
• The share prices of HDFC are often fluctuating causing
uncertainty for the investors.

11. Opportunities
• Mobile banking, Internet banking
• Venturing into rural areas
• Providing more complex products to the ever increasing
demands of the industry.
• Greater scope for acquisitions and strategic alliances due
to strong financial position.
• The companies in large and SME are growing at very fast
pace. HDFC has good reputation in terms of maintaining
corporate salary accounts

12. Threats
• Competitors (ICICI in rural sector).
• New banking licenses
• Foreign banks that offer complex products.
• Slight increase in Non Performing Assets (0.18% to 0.20%).