HDFC Bank was founded in 1994 and is now the largest private sector bank in India. The document summarizes and compares HDFC Bank's annual reports from 2010-2011 and 2013-2014. Some key findings are that over this period the bank expanded its branch network from 1,725 to 3,403 branches, saw significant growth in deposits, advances and profits, and increased its product portfolio to include more retail banking offerings.

1. RAJAT SHARMA
FDDI BUSINESS SCHOOL

2. INTRODUCTION
• HDFC was founded in 1977 by Hasmukh Bhai Parekh
• HDFC Bank was incorporated in August 1994
• It is the 5th Largest Bank in India by Assets
• It is the Largest Private Sector Bank in India by Market Capitalization
• Registered Office in Mumbai, India
• Promoted by HDFC, the Parent Company
• IPO in India in 1955
• Listed in BSE, NSE and NYSE (ADR)
• Type: Public Bank
• Industry : Banking, Insurance, Capital Markets and allied industries
• Products: Loans, Credit Cards, Savings, Investment, vehicles, Insurance etc

3. ANNUAL REPORT (2010-11):
OVERVIEW
• MISSION :
• Bank’s mission is to be ‘a World Class Indian Bank’ benchmarking itself
against international standards and best practices in terms of product
offerings, technology, service levels, risk management and audit and
compliance.
• The objective is to continue building sound customer franchises across
distinct businesses so as to be a preferred provider of banking services for
its target retail and wholesale customer segments.
• To achieve a healthy growth in profitability, consistent with the Bank’s risk
appetite.
• Bank is committed to do this while ensuring the highest levels of ethical
standards, professional integrity, corporate governance and regulatory
compliance.

4. BUSINESS STRATEGY
• Develop innovative products and services that attract its targeted
customers and address inefficiencies in the Indian Financial Sector
• Increase its market share in India’s expanding banking and financial
services industry by following a disciplined growth strategy focusing on
balancing quality and volume growth while delivering high quality
customer service
• Leverage its technology platform and open scaleable systems to deliver
more products to more customers and to control operating costs
• Maintain high standards for asset quality through disciplined credit risk
management
• Continue to develop products and services that reduce its cost of funds
• Focus on healthy earnings growth with low volatility

5. FINANCIAL PERFORMANCE
• Net Profit: Rs 3,926 crore , an increase of 33% over the previous year
• Balance Sheet size: Rs 2,77,353 crore, an increase of 24.7% over the
previous year
• Total Deposits: Rs 2,08,586 crore , an increase of 24.6% over the previous
year
• Total Advances: Rs 1,59,983 crore , an increase of 27.1% over the previous
year
• Capital Adequacy Ratio: 16.2% which is above the RBI norms of 9%
• Operating Expenses: Rs 7,153 crore , an increase of 20.4% over the
previous year
• Foreign exchange and derivatives revenues: Rs 786 crore , an increase of
26.2% over the previous year
• Earnings per share increased from Rs 67.56 to Rs 85.02 per equity share,
an increase of 25.7% over the previous year

6. PRODUCT PORTFOLIO
• Retail Banking :
• Provides retail loans like auto loans, home loans, personal loans,
commercial vehicle loans, mortgages, business banking , loan against gold
jewellery etc.
• Provides credit cards, debit cards, depository (custody services),
investment advisory , bill payments.
• Provides Depository Products like Savings, Current and Fixed Deposits.
• Apart from its own products, the Bank distributes third party financial
products such as mutual funds and life and general insurance

7. PRODUCT PORTFOLIO
• Wholesale Banking :
 Commercial Banking :
• It covers a wide range of banking services covering their Working Capital,
Term Finance, Trade Services, Cash Management, Foreign Exchange and
Electronic Banking requirements, Letter of credit, Guarantee.
 Transactional Banking :
• Cash Management, Custodial Services, Clearing Bank Services,
Correspondent Banking, Tax Collection, Banker to Public Issue.
 Key Segments :
• Large Corporation , Emerging Corporation , Financial Institutions ,
Government .

8. PRODUCT PORTFOLIO
• Treasury :
 Products offered :
• Foreign Exchange
• Debt Securities
• Derivatives
• Equity
 Other Functions :
• Asset Liability Management
• Statutory Reserve Management

9. MARKET GEOGRAPHY
• Bank expanded its distribution network from 1,725 branches in 779 cities
as on March 31, 2010 to 1,986 branches in 996 Indian cities on March 31,
2011.
• The Bank’s ATMs increased from 4,232 to 5,471 during the same period.
• Over 70% of the Bank’s branches opened outside the top nine Indian cities
• Caters to 21.9 million customers.
• An increase in ATM transactions by 14%
• Around 60% of its registered customers started using net banking facilities
for their banking requirements.
• Bank started offering phone banking in 996 locations in addition to giving
its customers the convenience of accessing their bank accounts over their
mobile phones.
• Over 5 million credit cards came into force as at March 2011.

10. ANNUAL REPORT (2013-14):
OVERVIEW
• BUSINESS PHILOSOPHY : 5 Core Values
• Operational Excellence, Customer Focus, Product Leadership, People and
Sustainability
• The cardinal principles of independence, accountability, responsibility,
transparency, fair and timely disclosures, etc. serve as the basis of the
bank’s approach to corporate governance
• Bank also has a well documented Code of Ethics /Conduct Policy which
defines the high business responsibility and ethical standards to be
adhered to while conducting the business of the Bank and mandates
compliance with legal and regulatory requirements.

11. FINANCIAL PERFORMANCE
• Net Profit: Rs 8,478 crore , an increase of 26% over the previous year
• Balance Sheet size: Rs 4,91,600 crore, an increase of 22.8% over the
previous year
• Total Deposits: Rs 3,67,337 crore , an increase of 24% over the previous
year
• Total Advances: Rs 3,03,000 crore , an increase of 26.4% over the previous
year
• Capital Adequacy Ratio: 16.1%
• Operating Expenses: Rs 12,042 crore , an increase of 7.2% over the
previous year
• Foreign exchange and derivatives revenues: Rs 1,401 crore , an increase of
38.7% over the previous year
• Earnings per share increased from Rs 28.5 to Rs 35.5 per equity share, an
increase of 24.6% over the previous year

12. PRODUCT PORTFOLIO
 NRI banking:
• Accounts & Deposits
• Money Transfer
• Investments & Insurance
• Research Reports
• Payment Services
 SME banking:
• Accounts & Deposits
• Business Financing
• Trade Services
• Payments & Collections
• Cards

13. PRODUCT PORTFOLIO
• Travelers Cheque
• Credit Cards
• Home Loans
• Personal Loans
• Foreign Currency Cash
• Foreign Currency Demand Drafts
• Cheque Deposits
• Remittances
• Trade Services
• Mutual Funds
• Insurance

14. PRODUCT PORTFOLIO

15. PRODUCT PORTFOLIO

16. PRODUCT PORTFOLIO

17. MARKET GEOGRAPHY
• Bank expanded its distribution network from 3,062 branches in 1,845
cities / towns as on March 31, 2013 to 3,403 branches in 2,171 cities /
towns as on March 31, 2014.
• Number of ATMs increased from 10,743 to 11,256 during the same year.
• Over 80% of the Bank’s new branches opened in semi-urban and rural
areas.
• The Bank caters to 28.9 million customers.
• For local customers there are Hindi Mobile App, Hindi SMS Banking and a
Toll Free number to carry out basic banking activities.
• Over 70% of new credit cards issued to internal customers.
• Bank currently has two overseas branches: a wholesale banking branch in
Bahrain and a branch in Hong Kong.
• Bank also has three representative offices in Dubai, Abu Dhabi and Kenya.

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