COMPANY PROFILE

HDFC BANK LTD 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.

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.
 MISSION
I. World Class Indian Bank
II. Benchmarking against international standards.
III. To build sound customer franchises across distinct businesses
IV. 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 highest level of ethical standards, professional
integrity and regulatory compliance. HDFC Bank’s business philosophy is based on four core
values such as:-
1. Operational excellence.
2. Customer Focus.
3. Product leadership.
4. People.
The 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 all his/her
requirements. The HDFC Bank plus and the investment advisory services programs have been
designed keeping in mind needs of customers who seeks distinct financial solutions, information
and advice on various investment avenues.

BUSINESS STRATEGY
I. Increasing market share in India’s expanding banking
II. Delivering high quality customer service
III. Maintaining current high standards for asset quality through disciplined credit risk
management
IV. Develop innovative products and services that attract targeted customers and address
inefficiencies in the Indian financial sector.

VARIOUS CSR ACTIVITIES

HDFC Bank is committed to identifying and supporting outreach programmes aimed at

developing and advancing the community in this manner. It works through partnerships with
Non-Governmental Organisations (NGOs) as well as directly through its various businesses to
create social value through its products and services.

The Bank’s Holistic Rural Development Programme (HRDP) is its flagship CSR initiative. This
programme aims to improve the economic and social conditions of the villages where it
operates. The focus areas of HRDP are Promoting Education; Skills Training and Livelihood
Enhancement; Natural Resources Management; Healthcare and Hygiene; Financial Literacy
and Inclusion. Under the programme, the Bank is working in over 500 villages across 14 states
in the country.

Promoting Education

The Bank’s education programmes are structured to create a conducive and effective learning
environment in schools. This includes providing basic infrastructure, scholarships, career
guidance; enabling teachers training and learning improvements. The programmes are spread
across geographies and close to 900 schools are being covered.

The distinctiveness of these programmes is the focus on improving the skills of teachers, which
in turn benefits the students. More than 65,000 students have benefitted through these
programmes.

Through the Zero Investment Innovation for Educational Initiatives (ZIIEI), the Bank has
reached out to more than 5.5 lakh school teachers. ZIIEI is a unique platform to implement best
practices in education across more than 75,000 schools in Uttar Pradesh. The project has been
executed jointly with a leading NGO for the state government.
Skills Training and Livelihood Enhancement

To create a sustainable community, people must have a steady source of income which will
contribute to a thriving economy. The Bank provides skills training and development
opportunities to enable beneficiaries to earn a living with a special focus on women and youth.
The Bank addresses this need through multiple projects ranging from competency-based skill-
oriented training and placement, capacity building, promoting entrepreneurial activities and
upskilling for agricultural and allied practices. These initiatives are tailor-made programmes that
focus on addressing the specific needs of a community.

Nearly 16,000 individuals have benefitted through the Bank’s efforts in skill training with over
5,000 coming from Uttar Pradesh alone. It has also supported more than 1,100 individuals to
become entrepreneurs. The projects are spread across varied geographies from Jammu &
Kashmir in the North, Meghalaya in the North East, and Tamil Nadu in the South to Gujarat in
the West
Natural Resource Management

While working on issues such as livelihood and water, the Bank makes a concerted effort
towards managing local natural resources. The multi-focussed interventions include the areas
of soil and water conservation, water management, construction, renovation and maintenance
of water harvesting structures for improving surface and ground water availability, promoting
organic fertilisers, and renewable energy, among others.
HDFC Bank has introduced the provision of water
wheels in rural communities to enable ease of access
to clean water as a part of its holistic approach
towards rural development. Water wheels have been
deployed and more than 150 villages across 4 states
have benefitted. The Bank has planted more than
67,000 trees, with the twin objectives of developing
horticulture and ensuring top soil retention for better
agriculture yield. A little over 3,800 acres of
agricultural land has been treated for enhancing
produce. In order to provide proper irrigation support,
more than 200 water harvesting structures
have been constructed or renovated. Crop diversification has been carried out in nearly 850
acres for improving output as well as enriching soil fertility.
Healthcare & Hygiene

HDFC Bank promotes the cause of good

hygiene and sanitation practices in the
community. Towards this end, the Bank
supports construction of toilets and clean
drinking water facilities.

Close to 7,500 households and 900 schools

in rural India have been covered under the
sanitation programme so far. Repair of hand
pumps is among the steps taken to ensure
adequate availability of potable water.

A primary healthcare centre was set up in the

flood affected regions of Uttarakhand, which
benefitted around 50,000 people.

Blood Donation Campaign

The year 2016 was another milestone year for the ‘Annual Blood Donation’ campaign. One, it
was its 10th year. Two, it witnessed record participation in terms of cities, camps and colleges
resulting in over 1.7 lakh blood units collected from over 2 lakh people. The tie up with corporate
and defence establishments to organise camps at their premises also helped in the
unprecedented collection.
Financial Literacy

Financial literacy is the first step towards financial inclusion. With this belief, the Bank conducts
financial literacy workshops for communities to enable them to make smart financial decisions
and sustain themselves. These workshops are executed through the Bank’s business units as
well as through NGO partners. Over 40 lakh households have benefitted from this so far.

Dhanchayat, is the Bank’s financial literacy programme on wheels and this has been running
successfully making more and more people in the rural areas aware of the perils of informal
banking. The Bank also disseminates information on general banking, credit counselling and
digital banking across a wider society such as schools, colleges, pensioners, and senior
citizens.
 INITIATIVES TAKEN FOR ENVIRONMENTAL PROTECTION

As a conscientious Bank, we understand our responsibility to operate in an environmentally

sustainable way by developing, promoting and utilising eco-friendly and resource-efficient
services.

In this regard, we have been estimating the Bank’s carbon footprint each year and have been
disclosing our environmental performance through Carbon Disclosure Project (CDP). To
manage our carbon emissions, we have compiled an inventory of energy-related emissions
from our office buildings and retail branches. We have incorporated environment friendly
features in our infrastructure. These entail water management, energy conservation, air quality
management and others. Some of the energy efficient and environment friendly technologies
are illustrated below:

Paperless Banking

The ATMs at HDFC Bank have gone paperless, enabling reduction

of its carbon footprint. The bank has reduced this effort a further
fillip by ensuring multichannel delivery through Net Banking, Phone
Banking and Mobile Banking. This reduces carbon emission from
operations as well as by reducing customer travel requirements.
Solar ATMs

The Bank in order to control its environmental footprint has

introduced solar ATMs. These use rechargeable Lithium Ion
batteries which use solar energy for their functioning, thereby
reducing the consumption of conventional energy.

Energy Management

Bank has initiated “Energy Management Module” in 100 select

branches across 4 metro cities to pull data from sensors to monitor
real time usage and based on analytics will help control electricity
wastage. This system will also monitor diesel consumption of DG
sets.
 Energy Saving Initiatives

• Five Star rated and energy efficient ACs and Diesel Gensets
• Replacement with LED lights in the office, replacement of old chillers

• Introduced Energy Management Module reduced about 10% of electricity consumed

Waste Management

 Ardent recycling of paper and plastic at all the branches.

 Waste water recycling facility at one of the hub locations.

Resource Efficiency

 Washrooms installed with proximity sensors.

 Usage of reusable cups and plates.
 Motion sensors to switch off the lights in unoccupied rooms.
 INITIATIVES TAKEN FOR CUSTOMER PROTECTION

The foundation of the Bank’s success is the trust of its customers. Its products and services are
detailed in HDFC Bank’s citizen’s charter which provides details about the various banking
transactions, policy on customer information and a process for grievance Redressal. HDFC
Bank has in place the following policies to protect customer rights:

a. Cheque Cancellation Policy

b. Customer Compensation Policy
c. Comprehensive Deposit Policy
d. Grievance Redressal Policy
e. Customer Acceptance, Customer Care & Customer Severance Policy
f. Model Policy on Collection of Dues and Repossession of Security
g. Customer Rights Policy.
 INITIATIVES TAKEN FOR EMPLOYEE PROTECTION

HDFC Bank recognizes employees as its biggest asset. It

constantly strives to maintain a healthy workforce and
empowers them with adequate powers and resources. There
were 87,555 permanent employees on its rolls as on March
31, 2016.

The Bank provides the onroll staff with benefits such as

healthcare, disability/invalidity coverage, fringe benefits such
as concessional loan, higher medical cover, superannuation
benefits and ESOPs.

a. Superannuation: Employees are entitled to

Superannuation fund after a specified grade. 13% of the
employee’s annual basic salary is the contribution by the
Bank to the insurance companies.

b. Gratuity: Gratuity is provided to employees who have

completed 5 years of service. An amount equivalent to 15
days’ basic salary payable for each completed year of
service is provided to the employee. The Bank contributes
to funds administered by trustees and managed by
insurance companies for amounts notifiied by the said
insurance companies.

c. Pension: The pension is applicable to certain employees under the Indian

Banking Association (IBA).

The retirement benefits such as superannuation, gratuity and

pension are recognised in the profit and loss account in the
period in which they accrue.
 EMPLOYEE DIVERSITY AND INCLUSION

The Bank believes in diversity at the workplace as a means to promote inclusion and
innovation. HDFC Bank is an equal opportunity employer and follows a non-
discrimination policy to ensure equal opportunities for growth are made available to all
employees. Uniformity in salaries is maintained for all employees, irrespective of
gender. Subsequently, the remuneration is decided based on performance of the
individual, through a performance management system.

To create an environment of inclusivity for women, the Bank has facilities like
extended maternity leave, and onsite crèche for young wards in one of the hub
locations, special workshops and seminars. The Bank also offers paternity leave
which was availed by 2,424 male employees who returned to work after the leave
ended.

HDFC Bank attaches great importance to ensuring safety of women at the

workplace. Immediate supervisors are entrusted with the responsibility of
maintaining a positive environment and have been made directly responsible for
ensuring safe working environment.

The Bank sensitises its employees on women’s safety regularly and has a robust
policy on the ‘Prevention of Sexual Harassment’ in line with ‘The Sexual
Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act,
2013’. All cases of harassment are treated with great sensitivity and are
escalated in time for resolution. The Internal Complaints Committee (ICC)
investigates complaints/instances that are reported and ensures resolution
through a fair and transparent process. In 2015-16, there were 17 cases related
to sexual harassment reported to ICC which were resolved in the 90-day
resolution period.

The Bank organised health check-up camps on the occasion of International

Women’s Day for women employees as well as non-employees.
It has also instituted the Tejaswini Awards, to recognise the contribution of women
employees in its success.