Strategic management college project

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SYDENHAM COLLEGE OF COMMERCE & ECONOMICS
2015-16
Program under faculty of commerce
MASTER OF COMMERCE (EVENING)
Project Title:
SWOT ANALYSES OF HDFC BANK
IN PARTIAL FULLFILMENT OF THE REQUIRNMENT UNDER SEMESTER
BASED ON
CREDIT & GRADING SYSTEM FOR POST GRADJUATION SEMESTER – I
SUBMITTED BY:
CHINTAN CHIMANBHAI KANABAR
Roll no. 27 (Div – A)
PROJECT GUIDE:
Dr. Anil R Chougule

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DECLARATION
I, CHINTAN CHIMANBHAI KANABAR of Sydenham College of
commerce & economics ‘B’Road, Church gate, Mumbai – 400020 currently
studying in M.com –I (Evening), Hereby declare that I have completed this
project on SWOT ANALYSES OF HDSC BANK for semester –I of the
academic year2015-16. The information given under the project is true and
fair to the best of my knowledge.
Signature of Student:
.
CHINTAN C KANABAR
Roll No. 27 (DIV-A)

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CERTIFICATE
This is to certify that MR. CHINTAN CHIMANBHAI KANABAR of the M.COM – I
(Evening) Semester-I has successfully completed project on Trend in India’s Trade Policies
under the Guidance of Mr. T.B GADHAVE
1. ProjectGuide. : T.B GADHAVE
2. Internal Examiner :
3. External Examiner :
Date :
Time :

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AKNOWLEDGMENT
I would firstly like to thank “UNIVECITY OF MUMBAI” For giving us the liberty to
select the topic which will benefit to us in the future. I would like to thanks to the
principle of Sydenham College of commerce & economics Dr. Annasaheb Khemnar for
giving me an opportunity to study in the esteemed college and doing the course of
accounting. I would like to express my sincere gratitude and thanks to professor who is
my project guide , as he has been guiding light on this project and also provided me with
the best of his knowledge, advice and encouragement which helps in the successful
completion of my project.
My colleague and specially my parent who has also supported and encourages me the
success of this project to the large extant is also dedicated to them.
I would like to thanks all those who helped me but I forgotten to mention in this space.
Signature of Student:
.
CHINTAN C KANABAR
Roll No. 27 (DIV-A)

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INTRODUCTION
SWOT Analysis is a useful technique for understanding your Strengths and Weaknesses,
and for identifying both the Opportunities open to you and the Threats you face. What
makes SWOT particularly powerful is that, with a little thought, it can help you uncover
opportunities that you are well placed to exploit. And by understanding the weaknesses of
your business, you can manage and eliminate threats that would otherwise catch you
unawares.
More than this, by looking at yourself and your competitors using the SWOT framework,
you can start to craft a strategy that helps you distinguish yourself from your competitors,
so that you can compete successfully in your market

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HOW TO USE SWOT ANALYSIS :
Originated by Albert S Humphrey in the 1960s, SWOT Analysis is as useful now as it
was then. You can use it in two ways - as a simple icebreaker helping people get together
to "kick off" strategy formulation, or in a more sophisticated way as a serious strategy
tool
Strengths and weaknesses are often internal to your organization, while opportunities and
threats generally relate to external factors. For this reason the SWOT Analysis is
sometimes called Internal-External Analysis and the SWOT Matrix is sometimes called
an IE Matrix.
STRENGTHS :
Your strengths are usually easy to identify, through your continuing dialogue with
customers and suppliers. Your records (eg sales) will also help to indicate areas where
you are particularly strong (eg rising sales for a particular product).
For most businesses, strengths will fall into four distinct categories.
1. Sound finances may give you advantages over your competitors.
 Important factors might include:
 Positive cash flow.
 Growing turnover and profitability.
 Skilled financial management, good credit control and few bad debts.
 A strong balance sheet.
 Access to extensive credit, a strong credit rating, and a good relationship with the
bank and other sources of finance.

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2. Marketing may be the key to your success.
For example, your business may enjoy:
 Market leadership in a profitable niche.
 A good reputation and a strong brand name.
 An established customer base.
 A strong product range.
 Effective research and development, use of design and innovation.
 A skilled sales force.
 Thorough after-sales service.
 Protected intellectual property (eg registered designs, patented products)
3. Management and personnel skills and systems may provide equally
importantunderpinnings for success.
 These may include factors such as:
 Management strength in depth.
 The ability to make quick decisions.
 Skilled employees, successful recruitment, and effective training and
development.
 Good motivation and morale.
 Efficient administration
4. Strengths in production may include the right premises and plant, and good sources
of materials or sub-assemblies.
You may benefit from:

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 Modern, low-cost production facilities.
 Spare production capacity.
 A good location.
 Effective purchasing and good relationships with suppliers
Be aware that strengths are not always what they seem. Strengths may imply weaknesses
(for example, market leaders are often complacent and bureaucratic) and often imply
threats (for example, your star salesman may be a strength - until he resigns).
WEAKNESSES :
Your weaknesses are often known but ignored. A SWOT analysis should be the starting
point for tackling underperformance in your business.
1. Poor financial management may result in situations where:
 Insufficient funds are available for investment in new plant or product
development.
 All available security, including personal assets and guarantees, is already
pledged for existing borrowings.
 Poor credit control leads to unpredictable cash flow.
2. Lack of marketing focus may lead to:
 Unresponsive attitudes to customer requirements.
 A limited or outdated product range.
 Complacency and a failure to innovate.
 Over-reliance on a few customers.

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3. Management and personnel weaknesses are often hard to recognize, except with
hindsight. Familiar examples are:
 Failure to delegate and train successors.
 Expertise and control locked up in a few key personnel.
 Inability to take outside advice.
 High staff turnover.
4. Inefficient production, premises and plant can undermine any business, however
hard people work. Typical problems include:
 Poor location and shabby premises.
 Outdated equipment, high cost production and low productivity.
 Long leases tying the business to unsuitable premises or equipment.
 Inefficient processes.
OPPORTUNITIES :
External changes provide opportunities that well managed businesses can turn to their
advantage.
 Changes involving organisations and individuals which directly affect your business
may open up completely new possibilities. For example:
a) Deterioration in a competitor’s performance, or the insolvency of a
competitor.
b) Improved access to potential new customers and markets (eg overseas).
c) Increased sales to existing customers, or new leads gained through them.
d) The development of new distribution channels (eg the Internet).
e) Improved supply arrangements, such as just-in-time supply or outsourcing
non-core activities.

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f) The opportunity y to recruit a key employee from a competitor.
g) The introduction of financial backers who are keen to fund expansion.
 The broader business environment may shift in your favour. This may be caused by:
a) Political, legislative or regulatory change.
For example, a change in legislation that requires customers to purchase a
product.
b) Economic trends.
For example, falling interest rates reducing the cost of capital.
c) Social developments.
For example, demographic changes or changing consumer requirements
leading to an increase in demand for your products.
d) New technology.
For example, new materials, processes and information technology
THREATS :
Threats can be minor or can have the potential to destroy the business.
Compare both strengths and weaknesses by benchmarking key areas with those in other
businesses.
3 Directors’ Briefing
Changes involving organisations and individuals that directly affect your business can
have far-reaching effects.

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For example:
• Improved competitive products or the emergence of new competitors.
• Loss of a significant customer.
• Creeping over-reliance on one distributor or group of distributors.
• Failure of suppliers to meet quality requirements.
• Price rises from suppliers.
• Key personnel leaving, perhaps with trade secrets.
• Lenders reducing credit lines or increasing charges.
• A rent review threatening to increase costs, or the expiry of a lease.
• Legal action (eg being sued by a customer).
The broader business environment may alter to your disadvantage. This may be the result
of:
• Political, legislative or regulatory change.
For example, new regulation increasing your costs or requiring product redesign.
• Economic trends.
For example, lower exchange rates reducing your income from overseas.
• Social developments.
For example, consumer demands for ‘environmentally-friendly’ products.
• New technology.
For example, technology that makes your products obsolete or gives competitors an
advantage.

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When looking at opportunities and threats, PEST Analysis can help to ensure that you
don't overlook external factors, such as new government regulations, or technological
changes in your industry.
EXAMPLE SWOT :
A start-up small consultancy business might draw up the following SWOT Analysis:
STRENGTHS:
 We are able to respond very quickly as we have no red tape, and no need for
higher management approval.
 We are able to give really good customer care, as the current small amount of
work means we have plenty of time to devote to customers.
 Our lead consultant has strong reputation in the market.
 We can change direction quickly if we find that our marketing is not working.
 We have low overheads, so we can offer good value to customers
WEAKNESSES:
 Our company has little market presence or reputation.
 We have a small staff, with a shallow skills base in many areas.
 We are vulnerable to vital staff being sick, and leaving.
 Our cash flow will be unreliable in the early stages.
OPPORTUNITIES:
 Our business sector is expanding, with many future opportunities for success.
 Local government wants to encourage local businesses.
 Our competitors may be slow to adopt new technologies.

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THREATS:
 Developments in technology may change this market beyond our ability to adapt.
 A small change in the focus of a large competitor might wipe out any market
position we achieve
SWOT ANALYSES OF HDFC BANK :
HDFC Bank Limited is an Indian banking and financial services company
headquartered in Mumbai, Maharashtra. Incorporated in 1994, it is the fifth largest bank
in India as measured by assets. It is the largest private sector bank in India by market
capitalization as of February 2014. The bank was promoted by the Housing Development
Finance Corporation, a premier housing finance company (set up in 1977) of India
According to the Brand Trust Report 2014, HDFC was ranked 32nd among India's most
trusted brands. HDFC was ranked 45th on the list of top 50 Banks in the world in terms of
their market capitalization
SERVICES PROVIDED BY HDFC BANK :
WHOLESALE BANKING SERVICES
HDFC Bank provides a range of commercial and transactional banking services,
including working capital finance, trade services, transactional services, cash
management, etc. to large, small and mid-sized corporate and agriculture-based
businesses in India. The bank is also a leading provider of these services to its corporate
customers, mutual funds, stock exchange members and banks
RETAIL BANKING SERVICES
HDFC Bank was the first bank in India to launch an International Debit Card in
association with VISA (Visa Electron). The bank also issues the MasterCard Maestro
debit card. The Bank launched its credit card business in late 2001.

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By the end of June 2013, it had a credit card base of 5.94 million. By March 2012, the
bank had a total card base (debit and credit cards) of over 19.7 million.
The Bank is also one of the leading players in the "merchant acquiring" business with
over 240,000 point-of-sale (POS) terminals for debit / credit cards acceptance at
merchant establishments. The Bank is positioned in various net based B2C opportunities
including a wide range of Internet banking services for Fixed Dep
osits, Loans, Bill Payments, etc.
TREASURY
The bank has three main product areas - Foreign Exchange and Derivatives, Local
Currency Money Market & Debt Securities, and Equities. These services 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
CONCEPTUAL FRAMEWORTK
INTERNAL AND EXTERNAL FACTORS
SWOT analysis aims to identify the key internal and external factors seen as important to
achieving an objective. SWOT analysis groups key pieces of information into two main
categories.
 Internal factors – the strengths and weaknesses internal to the organization.
 External factors – the opportunities and threats presented by the environment
external to the organization

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Analysis may view the internal factors as strengths or as weaknesses depending upon
their effect on the organization's objectives. What may represent strengths with respect
to one objective may be weaknesses (distractions, competition) for another objective.
The factors may include all of the 4Ps; as well as personnel, finance, manufacturing
capabilities, and so on.
 The external factors may include macroeconomic matters, technological change,
legislation, and socio cultural changes, as well as changes in the marketplace or in
competitive position. The results are often presented in the form of a matrix.
 SWOT analysis is just one method of categorization and has its own weaknesses. For
example, it may tend to persuade its users to compile lists rather than to think about
actual important factors in achieving objectives. It also presents the resulting lists
uncritically and without clear prioritization so that, for example, weak opportunities
may appear to balance strong threats.
 It is prudent not to eliminate any candidate SWOT entry too quickly. The importance
of individual SWOTs will be revealed by the value of the strategies they generate. A
SWOT item that produces valuable strategies is important. A SWOT item that
generates no strategies is not important.

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ADVANTAGES AND DISADVANTAGES OF SWOT ANALYSES
ADVANTAGES
APPLICATION NEUTRALITY
SWOT analysis is conducted by specifying an objective and conducting a brainstorming
session to identify internal and external factors that are favorable and unfavorable to the
objective's achievement. This approach remains the same whether the analysis is used to
support strategic planning, opportunity analysis, competitive analysis, business
development or product development processes.
MULTI-LEVEL ANALYSIS
Valuable information about your objective's chances can be gained by viewing each of
the four elements of the SWOT analysis -- strengths, weaknesses, opportunities and
threats -- independently or in combination. For example, identified threats in the business
environment, such as new government regulations regarding a product design or the
introduction of competing products, might alert the business owner that a proposed
investment in a new manufacturing production line should be more carefully evaluated.
In addition, an awareness of a company weakness such as a lack of qualified employees
might suggest a need to consider outsourcing particular functions. In turn, opportunities
such as the availability of low-interest loans for startups might encourage the
entrepreneur to pursue the development of a new product to meet a rising customer
demand. In contrast, identified strengths, such as extensive experience in an industry
experiencing rapid international growth, might suggest the need to partner with foreign
companies.

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DATA INTEGRATION :
SWOT analysis requires that quantitative and qualitative information from a number of
sources be combined. Access to a range of data from multiple sources improves
enterprise-level planning and policy-making, enhances decision-making, improves
communication and helps to coordinate operations.
SIMPLICITY :
SWOT analysis requires neither technical skills nor training. Instead, it can be performed
by anyone with knowledge about the business in question and the industry in which it
operates. The process involves a facilitated brainstorming session during which the four
dimensions of the SWOT analysis are discussed. As a result, individual participants’
beliefs and judgments are aggregated into collective judgments endorsed by the group as
a whole. In this way, the knowledge of each individual becomes the knowledge of the
group.
COST :
Because SWOT analysis requires neither technical skills nor training, a company can
select a staff member to conduct the analysis rather than hire an external consultant. In
addition, SWOT is a somewhat simple method that can be performed in a fairly short
time.
DISADVANTAGES :
NO WEIGHTING FACTORS :
SWOT analysis leads to four individual lists of strengths, weaknesses, opportunities and
threats. However, the tool provides no mechanism to rank the significance of one factor

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versus another within any list. As a result, any one factor's true impact on the objective
can't be determined.
AMBIGUITY
SWOT analysis creates a one-dimensional model in which each problem attribute is
viewed as a strength, weakness, opportunity or threat. As a result, each attribute is seen to
have only one influence on the problem being analyzed. However, one factor might be
both a strength and a weakness.
For example, locating a chain of stores on well-traveled streets that grant easy access to
customers might be reflected in increased sales. However, the costs of operating high-
visibility facilities can make it difficult to compete on price without a large sales volume.
SUBJECTIVE ANALYSIS
To significantly impact company performance, business decisions must be based on
reliable, relevant and comparable data. However, SWOT data collection and analysis
entail a subjective process that reflects the bias of the individuals who collect the data and
participate in the brainstorming session. In addition, the data input to the SWOT analysis
can become outdated fairly quickly
USAGE OF SWOT ANALYSES
The usefulness of SWOT analysis is not limited to profit-seeking organizations. SWOT
analysis may be used in any decision-making situation when a desired end-state
(objective) is defined. Examples include: non-profit organizations, governmental units,
and individuals. SWOT analysis may also be used in pre-crisis planning and preventive
crisis management. SWOT analysis may also be used in creating a recommendation
during a viability study/survey.

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STRATEGY BUILDING
SWOT analysis can be used effectively to build organization or personal strategy. Steps
necessary to execute strategy-oriented analysis involve: identification of internal and
external factors (using popular 2x2 matrix),
selection and evaluation of the most important factors and identification of relations
existing between internal and external features
For instance: strong relations between strengths and opportunities can suggest good
condition of the company and allow using aggressive strategy. On the other hand strong
interaction between weaknesses and threats could be analyzed as potential warning and
advise for using defensive strategy
MATCHING AND CONVERTING :
One way of utilizing SWOT is matching and converting. Matching is used to find
competitive advantage by matching the strengths to opportunities. Converting is to apply
conversion strategies to convert weaknesses or threats into strengths or opportunities. An
example of conversion strategy is to find new markets. If the threats or weaknesses
cannot be converted, a company should try to minimize or avoid them.
SWOT ANALYSIS OF HDFC :
STRENGTHS
 HDFC bank is the second largest private banking sector in India having 2,201
branches and 7,110 ATM’s
 HDFC bank is located in 1,174 cities in India and has more than 800 locations to
serve customers through Telephone banking

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 The bank’s ATM card is compatible with all domestic and international
Visa/Master card, Visa Electron/ Maestro, Plus/cirus and American Express. This
is one reason for HDFC cards to be the most preferred card for shopping and
online transactions
 HDFC bank has the high degree of customer satisfaction when compared to other
private banks
 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,
Euromoney 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 loyals 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

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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
COMPANY PROFILE
As of March 31, 2008, the Bank’s distribution network was at 761 Branches and 1977
ATMs in 327 cities as against 684 branches and 1,605 ATMs in 320 cities as of March
31, 2007. Against the regulatory approvals for new branches in hand, the Bank expects to
further expand the branch network by around 150 branches by June 30, 2008.

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During the year, the Bank stepped up retail customer acquisition with deposit accounts
increasing from 6.2 million to 8.7 million and total cards issued (debit and credit cards)
increasing from 7 million to 9.2 million. Whilst credit growth in the banking system
slowed down to about 22% for the year ended 2007-08.
The Bank’s net advances grew by 35.1% with retail advances growing by 38.6% and
wholesale advances growing by 30%, implying a higher market share in both segments.
The transactional banking business also registered healthy growth With cash management
volumes increased by around 80% and trade services volumes by around 40% over the
previous year. Portfolio quality as of March 31, 2008 remained healthy with gross
nonperforming assets at 1.3% and net non-performing assets at 0.4% of total customer
assets. The Bank‟s provisioning policies for specific loan loss provisions remained higher
than regulatory requirements.
MARCH 2006 MARCH 2007 MARCH 2008
CITIED 228 316 327
BRANCHES 535 684 761
ATMS 1323 1605 1977
TECHNOLOGY USED IN HDFC BANK
In the era of globalization each and every sector faced the stiff competition from their
rivals. And world also converted into the flat from the globe. After the policy of
liberalization and RBI initiatives to take the step for the private sector banks, more and
more changes are taking the part into it. And there are create competition between the
private sector banks and public sector bank. Private sector banks are today used the latest
technology for the different transaction of day to day banking life.

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As we know that Information Technology plays the vital role in the each and every
industries and gives the optimum return from the limited resources. Banks are service
industries and today IT gives the innovative Technology application to Banking
industries. HDFC BANK is the leader in the industries and today IT and HDFC BANK
together combined they reached the sky.
New technology changed the mind of the customers and changed the queue concept from
the history banking transaction. Today there are different channels are available for the
banking transactions.
Centralized Processing Units Derived Economies of Scale
Electronic Straight Through
Processing
Reduced Transaction Cost
Data Warehousing , CRM Improve cost efficiency, Cross
sell
Innovative Technology
Application
Provide new or superior
products

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DATA ANALYSES
HDFC Bank Limited (HDFCBANK) - Financial and Strategic SWOT Analysis Review
provides you an in depth strategic SWOT analysis of the company’s businesses and
operations. The profile has been compiled by Global Data to bring to you a clear and an
unbiased view of the company’s key strengths and weaknesses and the potential
opportunities and threats. The profile helps you formulate strategies that augment your
business by enabling you to understand your partners, customers and competitors better.
The profile contains critical company information including:-
 Business description – A detailed description of the company’s operations and
business divisions.
 Corporate strategy – Analyst’s summarization of the company’s business strategy.
 SWOT Analysis – A detailed analysis of the company’s strengths, weakness,
opportunities and threats.
 Company history – Progression of key events associated with the company.
 Major products and services – A list of major products, services and brands of the
company.
 Key competitors – A list of key competitors to the company.
 Key employees – A list of the key executives of the company.
 Executive biographies – A brief summary of the executives’ employment history.
 Key operational heads – A list of personnel heading key departments/functions.
 Important locations and subsidiaries – A list and contact details of key locations
and subsidiaries of the company.
 Detailed financial ratios for the past five years – The latest financial ratios derived
from the annual financial statements published by the company with 5 years
history.

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 Interim ratios for the last five interim periods – The latest financial ratios derived
from the quarterly/semi-annual financial statements published by the company for
5 interims history.
Highlights :
 HDFC Bank Limited (HDFC) offers a wide range of financial and banking products
and services to individuals, retail customers and corporate clients. It offers checking
accounts, loans, cards, insurance, investments, private banking and forex services.
 The bank undertakes trading operations on the proprietary account, foreign exchange
operations, and derivatives trading both on the proprietary account and customer
flows. The bank also provides products and services through its two subsidiaries,
namely, HDFC Securities Limited (HSL) and HDB Financial Services Limited
(HDBFS).
 HDFC also operates as a clearing and settlement bank to various stock exchanges.
Key benefits of buying this profile include:
 You get detailed information about the company and its operations to identify
potential customers and suppliers.
 The profile analyzes the company’s business structure, operations, major products and
services, prospects, locations and subsidiaries, key executives and their biographies
and key competitors. Understand and respond to your competitors’ business structure
and strategies, and capitalize on their weaknesses. Stay up to date on the major
developments affecting the company.

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 The company’s core strengths and weaknesses and areas of development or decline
are analyzed and presented in the profile objectively. Recent developments in the
company covered in the profile help you track important events .Equip yourself with
information that enables you to sharpen your strategies and transform your operations
profitably.
 Opportunities that the company can explore and exploit are sized up and its growth
potential assessed in the profile. Competitive and/or technological threats are
highlighted. Scout for potential investments and acquisition targets, with detailed
insight into the companies’ strategic, financial and operational performance.
 Financial ratio presented for major public companies in the profile include the
revenue trends, profitability, growth, margins and returns, liquidity and leverage,
financial position and efficiency ratios. Gain key insights into the company for
academic or business research.
 Key elements such as SWOT analysis, corporate strategy and financial ratios and
charts are incorporated in the profile to assist your academic or business research
needs.

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BUSINESS STRETEGY :
HDFC BANK mission is to be "A World Class Bank", benchmarking themselves
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. Bank is committed to do this while ensuring the highest levels of ethical
standards, professional integrity, corporate governance and regulatory compliance.
Continue to develop new product and technology is the main business strategy of the
bank. Maintain good relation with the customers is the main and prime objective of the
bank
Based in India, HDFC Bank is the largest private universal bank by market capitalization,
with more than 25 million customers, an extensive distribution network of 2544 branches
spread across 1399 cities and more than 55,000 employees. To maintain its leadership,
HDFC Bank used CRM next to establish a single platform for execution of its strategy
across products, departments and channels. The result, over FY2008- 2011, bank's net
profit has grown from USD 318 million to USD 1033 million at a consistent rate of 30%
quarter-on-quarter for the last 3 years. During this period the banks customer base has
grown by 113%, while the loyalty index has grown from 38 to 62 as opposed to industry
average of 54.
HDFC Bank believes several steps together led to its program success, including:

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Top management vision and support
 Understanding & communicating the vision of the program clearly
 Driving it as a transformation rather than a technology project
 Ensuring adequate resource allocation in term of time and money
 Delivering quick wins to maintain the enthusiasm
Implementation methodology
 Creating a 3 year roadmap to achieve the full potential of the vision
 Creating an internal CRM excellence team
 Ensuring adequate multi-wave iterations for process unification
 Taking quick decision during departmental conflicts
 Understanding that user adoption is driven by value & not technology
Respecting technology complexities
 Creating reliable integrations because they must tested day-on-day
 Ensuring right strategies to work with LOB system that are not open
 Understanding scalability requirements is key to decision making
 Understanding the impact of reports and isolating the work load
Ownership experience
 Training production teams to own such a high impact CRM
 Ensuring user training are part of the HR induction program
 Ensuring adequate user feedback and improvement cycles
 Using strong production change management practices to deliver always on
availability
Selecting the right Partners

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 Understanding that such transformation need practice specialists
 Selecting a partner who can add value to the vision
 Listening to the partner especially when the advise is counter intuitive
The Opportunity
To retain competitive advantage, HDFC Bank realized that in today’s environment only
unparallel customer experience could provide a sustained edge much needed to maintain
its growth rate in spite of increasing balance sheet size. Unlike other banks, HDFC Bank
did not want to buy growth at the expense of its profitability.
 The bank quickly realized that the answer was a two prong strategy
 Raising the bar for its internal processes (although the bank were already
outperforming the industry) to preserve profitability.
 Ensuring consistency of information and actions across channels to create an
unmatched customer experience - gaining trust and loyalty to sustain the growth
trajectory.
The Challenge
Despite the clarity in strategy, execution was an obvious challenge. Such a radical
strategy was first of its kind and faced tremendous risk due to inherent complexity and
technological challenges, considering:
 The transformation had to happen across a geographically distributed team,
without hampering business and at a pace that kept it relevant.
 Streamlining deliveries, keeping in mind the readiness and the ground realities.

31
 Leveraging the data warehouse to build intelligence on customers and deploying
this information at various touch points to help maximize customer life cycle
value.
 Scalability of the system given the large data volumes, 55,000+ user base,
workflow complexities, integration, synchronization and incremental updates.
 High Impact improvement areas
Customer 360 view
 Creating one view of customer relationships, interactions, and product/service
offering with unified workflow for all sales & service interactions.
 Customer intimacy: What do they buy? What do they need? How do they behave?
Sales process reengineering
 Manage end-to-end sales process across departments for all products on a single
platform.
 Ensure unification improves TAT backed by escalations at different stages of the
process, irrespective of action happening in CRM or LOB systems.
Customer experience management
 Enable service and action guarantee across channels.
 Enforce customer courtesies, empower relationship managers with requisite
information, define contact strategies based on customer segment bands.
Effective cross selling capability
Use CRM to enhance cross sell, up-sell capabilities across all customer touch points.
As one of the top IT spenders, HDFC Bank has deep relationships with all key
Technology partners. Aware of ground realities, the bank focused on three key parameter
to execute a vision that had no parallel

32
 An ultra-scalable product with an architecture capable of managing
 Over 55,000 users serving over 25 million customers.
 Integration capabilities that is reliable and capable of managing complex &
diverse scenarios while retaining traceability.
 An implementation partner - a firm believer in practice leadership with extensive
banking domain knowledge and capability to execute the vision.
Customer 360 view
 Creating a unified customer view by collating and massaging data from various
sources including the data warehouse.
 Controlling customer information based on the role of users.
 Enabling access to single view across various channels like branch, phone
banking, etc.
Integrated sales platform
 Multi-wave process workouts to ensure unification and consolidation of all
unstructured processes (run on excel) and semi-automated processes.
 Phasing out 6 applications like lead tracking system, customer contact
management, etc.
 Integrating with 7 core and origin systems to provide end-to-end status visibility.
 Process TAT guaranteed by alerts and multi-stage escalations across departments
and channels.
 Using mobile & two way SMS capabilities to create leads, update status, request
for customer offers, etc.
Customer experience management

33
 Enabling improved relationship management by creating virtual portfolios and
accountability.
 Ensuring information availability at all customer touch points to boost the quality
of interactions.
 Enabling system driven contact strategies based on customer bands to ensure
aligned actions.
 Focus on roadmap to establish CRM next as a single destination for all needs.
Effective cross selling capability
 The platform operates across all channels, providing global visibility and status of
offers.
 Various systems integrated to provide event based triggering such as large
deposits, channel usage, etc.

34
GROWTH ANALYSES :
At HDFC Bank, we consistently aim to reduce the gap in access to financial services in
the country by offering avenues of savings and credit to the low income society in a
comprehensive and affordable manner. To cater to the basic banking needs of the
financially underprivileged and relatively untapped geographical areas, we have adopted
a customer-centric approach. In line with this approach, we offer the Basic Savings Bank
Deposit Account (BSBDA) which provides customised solutions to suit the needs of
different classes of customers.

35
BRANCHES st As of 31 March 2015
Pradhan Mantri Jan Dhan Yojana
 In the reporting period, we sustained the spirit of providing basic banking facilities to
the unbanked population in our execution of the Pradhan Mantri Jan Dhan Yojana
(PMJDY) through our branches, Bank Mitras and other alternate channels. Under this
mission, we were allocated 1,449 urban wards and 453 Sub Service Areas (SSA),
across 25 States and 2 Union Territories.
 We identified unbanked households in allocated wards and SSAs by conducting
household surveys, which were completed well within the deadline set by Department
of Financial Services (DFS).Further, account opening for all unbanked households
was completed with 100% of the unbanked households provided with bank accounts.
RURAL
URBAN
SEMI-URBAN
METROPOLITAN

36
 The Bank's Yamuna Nagar branch has been recognised by DFS for achieving the
highest value in a branch across the country. By using appropriate technology, we
achieved all our targets s within the deadline of 31 Jan 2015 and are now among the
leading private sector banks in terms of Account Value and number of accounts
opened under PMJDY.
 In the reporting period, the Bank launched an exclusive Forex Plus card for Hajj and
Umrah pilgrims to make payments during the pilgrimage in a convenient and secure
manner. This card also helps pilgrims avoid carrying Saudi Riyals in cash, which
might get misplaced.
 The Forex Plus card can be also be used to withdraw money from ATMs and comes
with a back-up card which can be activated in case of loss or damage to the primary
card. The card can be reloaded from any branch of the Bank in case the amount
loaded in the card is exhausted. Through this initiative the Bank is reaching out to
close to 1.7 lakh pilgrims across India who are expected to make the annual
pilgrimage.
 We give utmost importance to serving our customers responsibly. At HDFC Bank,
responsible service encompasses following ethical practices, ensuring data privacy
and security, communicating effectively, seeking regular feedback, and addressing
grievances to satisfaction. Regular engagement with customers helps us achieve each
of the above while understanding their expectations and accordingly improving our
service

37
 Our Communication and Awareness Committee (CAAC) monitors compliance with
RBI guidelines on customer education to help prevent fraud attempts and to mend the
loop holes in data security.In case of service-deficiencies such as unauthorised
debiting of accounts and payment of cheques after acknowledgement of stop payment
instructions, our Customer Compensation Policy allows for customers to be
compensated for the financial losses they may have incurred.
 Through feedback channels such as surveys, daily internal checks, quarterly call
evaluations and service quality assessments, we endeavour to seek feedback from our
customers to analyse the levels of satisfaction as well as to understand their issues.
 Customers with grievances are encouraged to approach designated authorities for
recording, resolution and escalation of their complaints .Such complaints are resolved
in a timely manner and efforts are made to prevent recurrence wherever possible .In
cases where customers do not receive a response within one month from date of
complaint or in cases of dissatisfaction with the response received from the bank, the
Banking Ombudsman appointed by the Reserve Bank of India (RBI) may be
approached
Customer Complaints
ATM transaction
disputes on
HDFC Bank's
ATMs
ATM transaction
disputes on other
banks' ATMs
Other than ATM
transaction
disputes
Credit Card
Complaints
Pending at the beginning
of the year
159 1601 456 0
Received during the yea 11300 82572 72075 3
Resolved during the yea 11388 82839 72034 3

38
CONCLUSION
Realistic recognition of the weaknesses and threats that exist for your effort is the first
step to countering them with a robust and creative set of strengths and opportunities. A
SWOT analysis identifies your strengths, weaknesses, opportunities and threats to assist
you in making strategic plans and decisions
SWOT is a simple yet comprehensive way of assessing the positive and negative forces
within and without your organization, so you can be better prepared to act effectively.
The more stakeholders you involve in preparing the SWOT, the more valuable your
analysis will be •Whatever courses of action you decide on, the four-cornered SWOT
analysis prompts you to move in a balanced way throughout your program. It reminds
you to:
Build on your strengths Minimize your weaknesses, Seize opportunities ,Counteract
threats A SWOT analysis will be most helpful if you use it to support the vision, mission,
and objectives you have already defined. The SWOT will at least provide perspective,
and at best will reveal connections and areas for action.
HDFC Bank Limited (HDFCBANK) - Financial and Strategic SWOT Analysis Review
provides you an in-depth strategic SWOT analysis of the company’s businesses and
operations. The profile has been compiled by Global Data to bring to you a clear and an
unbiased view of the company’s key strengths and weaknesses and the potential
opportunities and threats. The profile helps you formulate strategies that augment your
business by enabling you to understand your partners, customers and competitors bettel

39
HDFC Bank Limited (HDFC) offers a wide range of financial and banking products and
services to individuals, retail customers and corporate clients. It offers checking accounts,
loans, cards, insurance, investments, private banking and forex services. The bank
undertakes trading operations on the proprietary account, foreign exchange operations,
and derivatives trading both on the proprietary account and customer flows.
The bank also provides products and services through its two subsidiaries, namely,
HDFC Securities Limited (HSL) and HDB Financial Services Limited (HDBFS). HDFC
also operates as a clearing and settlement bank to various stock exchanges.
BIBLOGRAPHY
www.investopedia.com
www.answer.com
www.encyclopedia.com

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