CHAPTER NO.

Industry Profile

Introduction of Organisation HDFC (Housing Development Finance Corporation) HDFC Group Ltd has its following products: HDFC Bank HDFC Securities Ltd HDFC Life Insurance Ltd HDFC Ergo Insurance Ltd

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 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. . Certificate of Commencement of Business was received on 10th October 1994 from cental bank of India .(RBI). HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. It is one of Indias premier bank providing a wide range of financially products and services to its millions numbers of customers across hundred of Indians using multiple distribution channels includes a pan India network of branches,ATMs,net banking , mobile banking . With a short span of time the bank has emerged as a trading player in different -2 operations. Retail Banking Wholesale banking Treasury operations

The business philosophy is based on following core values.: Operational Excellence Customer Focus Product Leadership

The banks competitive strength lies in use of technology and ability to delivery world class services with rapid response time. Over 15 years bank has sucessfully gained market and value. Leading Indian andu International publication have regognaised the bank for its performance and quality

PROMOTORS HDFC is India's premier housing finance company and enjoys an good track record in India as well as in international markets. Since its inception in 1997, the corporation has maintained a consistent and healthy growth in its operations to remain a market leader in mortgage. Its outstanding loan portfolio covers well over a million 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 franchise, HDFC was ideally positioned to promote a bank in the Indian environment.

Awards and Achievements HDFC Bank began operations in 1995 with a simple mission: to be a "Worldclass Indian Bank". We realised that only a single-minded focus on product quality and service excellence would help us get there. Today, we are proud to say that we are well on our way towards that goal.

HDFC Securities Ltd, a trusted financial service provider promoted by HDFC Bank and JP Morgan Partners and their associates, is a leading stock broking company in the country, serving a diverse customer base of institutional and retail investors. HDFCsec.com provides investors a robust platform to trade in Equities in NSE and BSE , and derivatives in NSE. Its website support to the custmoer with the highest standards of services, convenience and hassle-free trading tools.Its research team tracks the economy, industries and companies to provide you the latest information and analysis. It offers financial information, analysis, investment guidance, news & views, and is designed to meet the requirements of everyone for well tarding.

Deals in different types of securities through NSE and BSE

Equity Derivatives Currency Futures IPOs Mutual funds

HDFC life ltd is one of the leading private life insurance companies in India incorporated in August,2000. HDFC Life is a joint venture between HDFC- Indias housing finance company and Standard plc United Kingdoms savings and investment Company. HDFC Ltd. holds 72.43% and Standard Life (Mauritius Holding) Ltd. holds 26% of equity in the joint venture while the rest is owned by others. HDFC Life has the most comprehensive list of products for progressive e m p l o ye r s w h o w i s h t o p r o v i d e t h e b e s t a n d m o s t innovative different employee products benefit solutions needs to their e m p l o ye e s . It offer

for

different

o f employers ranging from term

insurance plans for pure protection to voluntary plans such as superannuation and leave encashment

HDFC Life Insurance has taken dynamic steps as part of changing brand identity. HDFC Standard life in order to connect to younger target market made a series of changes. HDFC Standard life dropped the standard word from their name to make it HDFC Life.

HDFC Life also changed their logo depicting more energy, exuberance, vibrancy, dependability in their brand. HDFC Life also pushed their tagline sar utha ke jiyo with television

commercial, radio ads, print and other communication mediums. The tagline presents the idea of living life with dignity which can be achieved through being self dependernt and insurance is part and parcel of the same.

HDFC ERGO general insurance is joint venture between HDFC Limited- Indias financial institution and ERGO International AG- Germanys insurance provider. HDFC holds 76% equity stake while the rest is owned by ERGO. The company is headquartered in Mumbai. HDFC ERGO has received iAAA rating (highest rating for claim paying ability) from ICRA, renowned rating agency. HDFC ERGO also received ISO 9001:2008 certification for its claim services. HDFC ERGO s Products: Motor Insurance Health Insurance Travel Insurance Home Insurance Personal Accident Insurance

HDFC ERGO also offers property, casualty and rural insurance.

COMPANY PROFILE

PROFILE OF BANK About - HDFC Bank Limited, India

The Housing Development Finance Corporation Limited (HDFC) was amongst the first toreceive an 'in-principle' approval from the Reserve Bank of India (RBI) to set up a bank inthe 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 itsregistered office in Mumbai, India. HDFC Bank commenced operations as a ScheduledCommercial Bank in January 1995. Promoter HDFC is India's premier housing finance company and enjoys an impeccable track record inIndia as well as in international markets. Since its inception in 1977, the Corporation hasmaintained a consistent and healthy growth in its operations to remain a market leader inmortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFChas developed significant expertise in retail mortgage loans to different market segments anda l s o h a s a l a r g e c o r p o r a t e c l i e n t b a s e f o r i t s h o u s i n g r e l a t e d c r e d i t f a c i l i t i e s . W i t h i t s experience in the financial markets, a strong market reputation, large shareholder base andunique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment. Capital Structure The authorized capital of HDFC Bank is Rs.450 crores (Rs.45 billion). The paid-up capitalis Rs.282 crores (Rs.28.2 billion). The HDFC Group holds 24.2% of the bank's equity whilea b o u t 13.1% of the equity is held by the depository in respect of the b a n k ' s i s s u e o f American Depository Shares (ADS/ADR Issue). The Indian Private Equity Fund, Mauritiu (IPEF) and Indocean Financial Holdings Ltd., Mauritius (IFHL) (both funds advised by J PMorgan Partners, formerly Chase Capital Partners) together hold about 5.5% of the bank'sequity. Roughly 27.5% of the equity is held by FIIs, NRIs/OCBs while the balance is widelyheld by about 214,000 shareholders. The shares are listed on The Stock Exchange, Mumbaiand the National Stock Exchange. The bank's American Depository Shares are listed on the New York Stock Exchange (NYSE) under the symbol "HDB".

Times Bank Amalgamation

In a milestone transaction in the Indian banking industry, Times Bank Limited (another new private sector bank promoted by Bennett, Coleman & Co. /Times Group) was merged withH D F C B a n k L t d . , e f f e c t i v e F e b r u a r y 2 6 , 2 0 0 0 . A s p e r t h e s c h e m e o f a m a l g a m a t i o n approved by the shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank. Theamalgamation added significant value to HDFC Bank in terms of

increased branch network,expanded geographic reach, enhanced customer base, skilled manpower and the opportunityto cross-sell and leverage alternative delivery channels. Distribution Network HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over 468 branches spread over 212 cities across the country. All branches are linked on anonline real-time basis. Customers in 90 locations are also serviced through Phone Banking.T h e B a n k 's e x p a n s i o n p l a n s t a k e i n t o a c c o u n t t h e n e e d t o h a v e a p r e s e n c e i n a l l m a j o r industrial and commercial centers where its corporate customers are located as well as theneed to build a strong retail customer base for both deposits and loan products. Being aclearing/settlement bank to various leading stock exchanges, the Bank has branches in thecenters where the NSE/BSE has a strong and active member base. The Bank also has anetwork of over 1054 networked ATMs across these cities. Moreover, HDFC Bank's ATMn e t w o r k c a n b e a c c e s s e d b y a l l d o m e s t i c a n d i n t e r n a t i o n a l V i s a / M a s t e r C a r d , V i s a Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders Management Mr. Jagdish Kapoor 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.T h e B a n k 's B o a r d o f D i r e c t o r s is composed of eminent individuals with a wealth o f e x p e r i e n c e i n p u b l i c p o l i c y, a d m i n i s t r a t i o n , i n d u s t r y a n d c o m m e r c i a l b a n k i n g. S e n i o r executives representing HDFC are also on the Board.

Board of directors
Managing Director Executive Director Executive Director Director Director Director Director Director Aditya Puri Harish Engineer Paresh Sukthankar Anami N Roy Ashim Samanta Bobby Parikh Partho Datta Renu Karnad

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 Automated Teller Machines(ATMs).The Bank has made substantial efforts and investments in acquiring the best technology a v a i l a b l e i n t e r n a t i o n a l l y t o b u i l d t h e i n f r a s t r u c t u r e f o r a world-class bank. In terms of software, the Corporate Banking business is supported by Flex cube, while the Retail Banking business by Fin ware, b o t h f r o m i - f l e x S o l u t i o n s Lt d . T h e s ys t e m s a r e o p e n , scaleable and webenabled. 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 eachof its businesses, the Bank has succeeded in leveraging its market position, expertise and technology to create a competitive advantage and build market share.

Product scope
HDFC Bank offers a bunch of products and services to meet the every need of the people.T h e c o m p a n y c a r e s f o r b o t h , i n d i v i d u a l s a s w e l l a s c o r p o r a t e a n d s m a l l a n d m e d i u m enterprises. For individuals, the company has a range accounts, investment, and pensionscheme, different types of loans and cards that assist the customers. The customers canchoose the suitable one from a range of products which will suit their life-stage and needs.For organizations the company has a host of customized solutions that range from fundedservices, Non -funded services, Value addition services, Mutual fund etc. These affordable plans apart from providing long term value to the employees help in enhancing goodwill of the company. The products of the company are categorized into various sections which are as follow : Accounts and deposits. Loans. Investments and insurance. Forex and payment service. Cards. Customer centers .

Mission Of HDFC Bank

1. 2. 3. 4. World class Indian bank Benchmarking against international standards To build sound customer franchises across distinct businesses. Best practices in terms of product offerings,technology, service levels, Risk management and audit compliance.

VISION STATEMENT OF HDFC BANK The HDFC Bank is committed to maintain the h i gh e s t l e v e l o f e t h i c a l s t a n d a r d s , professional integrity and regulatory compliance. HDFC Banks business philosophy is based on four core values such as:-1 . O p e r a t i o n a l e x c e l l e n c e . 2 . C u s t o m e r F o c u s . 3 . P r o d u c t l e a d e r s h i p . 4 . P e o p l e . Th e objective of the HDFC Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one-step window for allh i s / h e r r e q u i r e m e n t s . T h e H D F C B a n k p l u s a n d t h e i n v e s t m e n t a d v i s o r y s e r v i c e s programs have been designed keeping in mind needs of customers who seeks distinctfinancial solutions, information and advice on various investment avenues. BUSINESS SEGMENT HDFC Bank offers a wide range of commercial and transactional ban k i n g services and treasury products to wholesale and retail customers. The bank has three key business segments: Wholesale Banking Services: The Bank's target market ranges from large, blue-chip manufacturing companies in theIndian corporate to small & mid-sized corporate and agri-based businesses. For thesecustomers, the Bank provides a wide range of commercial and transactional bankingservices, including working capital finance, trade services, transactional services, cashmanagement, etc. The bank is also a leading provider of structured solutions, whichcombine cash management services with vendor and distributor finance for facilitatingsuperior supply chain management for its co rporate customers. Based on its superior product delivery / service levels and strong customer orientation, the Bank has madesignificant inroads into the banking consortia of a number of leading Indian corporate including multinationals, companies from the domestic business houses and prime publics e c t o r c o m p a n i e s . It i s r e c o gn i z e d a s a l e a d i n g p r o v i d e r o f c a s h m a n a g e m e n t a n d transactional banking solutions to corporate customers, mutual funds, stock exchangemembers 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 windowfor all his/her banking requirements. The products are backed by world-class service andd e l i v e r e d t o t h e customers through the growing branch network, as well as t h r o u g h a l t e r n a t i v e d e l i v e r y c h a n n e l s l i k e A T M s , P h o n e B a n k i n g, N e t B a n k i n g a n d M o b i l e Banking.The HDFC Bank Preferred program for high net worth individuals, the HDFCBank Plus and the Investment Advisory Services programs have been designed keeping in mind needs of customers who seek distinct financial solutions, information and adviceon various investment avenues. The Bank also has a wide array of retail loan products including Auto Loans, Loans against marketable securities, Personal Loans and Loansfor Two-wheelers. It is also a leading provider of Depository

Participant (DP) servicesf o r r e t a i l c u s t o m e r s , p r o v i d i n g c u s t o m e r s t h e f a c i l i t y t o h o l d t h e i r i n v e s t m e n t s i n electronic form.HDFC Bank was the first bank in India to launch an International Debit Card inassociation with VISA (VISA Electron) and issues the Master card Maestro debit card aswell. The Bank launched its credit card business in late 2001. By September 30, 2005,the bank had a total card base (debit and credit cards) of 5.2 million cards. The Bank isalso one of the leading players in the "merchant acquiring" business with over 50,000P o i n t - o f sale (POS) terminals for debit / credit cards acceptance at mer c h a n t establishments. Treasury: Within this business, the bank has three main product areas - Foreign Exchangeand Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the liberalization of the financial markets in India, corporate need more sophisticated risk m a n a ge m e n t i n f o r m a t i o n , a d v i c e a n d p r o d u c t s t r u c t u r e s . T h e s e a n d f i n e p r i c i n g o n various treasury products are provided through the bank's Treasury team. To complywith statutory reserve requirements, the bank is required to hold 25% of its deposits ingovernment securities. The Treasury business is responsible for managing the returnsand market risk on this investment portfolio.

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