CHAPTER- 1 INTRODUCTION

A bank is a financial institution and a financial intermediary that accepts deposits and channels
those deposits into lending activities, either directly by loaning or indirectly through capital
markets.
A bank is a financial institution and a financial intermediary that accepts deposits and channels
those deposits into lending activities, either directly by loaning or indirectly through capital
markets. A primary role of banks is connecting those with funds, such as investors and
depositors, to those seeking funds, such as individuals or businesses needing loans. A bank is
the connection between customers that have capital deficits and customers with capital
surpluses.

Banks distribute the medium of exchange. Banking is a business. Banks sell their
services to earn money, and they must market and manage those services in a
competitive field. Banks are financial intermediaries that safeguard, transfer, exchange,
and lend money and like other businesses that must earn a profit to survive.
Understanding this fundamental idea helps you to understand how banking systems
work, and helps you understand many modern trends in banking and finance.

ABOUT HDFC

HDFC Bank 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 from Housing
Development Finance Corporation Limited (HDFC), in 1994 during the period of
liberalisation of the banking sector in India. HDFC India was incorporated in August
1994 in the name of ‘HDFC Bank Limited’. HDFC India commenced operations as a
Scheduled Commercial Bank in January1995.

HDFC India deals in varieties of products like home loan, standard life insurance,
mutual fund, securities, credit cards, etc. HDFC has branch offices in all major cities in
India like Calcutta, Chennai, Delhi, Bangalore, Hyderabad, Ahmedabad apart from
HDFC Mumbai.

1.1 BUSINESS OBJECTIVE

The primary objective of HDFC is to enhance residential housing stock in the Country
through the provision of housing finance in a systematic and professional Manner, and to
promote home ownership. Another objective is to increase the flow of resources to the
housing sector by integrating the housing finance sector with the overall domestic financial
markets.

1.2 VISION
To become the market leader in Housing Development Finance in Sri Lanka

1.3 MISSION

We define our mission in the broader context of our shareholders, customers, staff, the national
economy, regulators and the natural environment.
  To our shareholders, our mission is to optimize returns.
 To our customers, our mission is to provide a caring service by anticipating their requirements
and innovatively satisfying them beyond their expectations.
 To our staff, our mission is to identify their multi-faceted talents, develop, motivate, recognize
and reward them towards fulfilment of the institutional and national housing vision.
 To the national economy and the industry regulator, we are the key driver and thought leader,
shaping and financing the national housing policy.
 To our natural environment, we enforce sustainable practices across all our activities.

1.4 ORGANIZATIONAL GOALS

a) Develop close relationships with individual households.
b) Maintain its position as the premier housing finance institution in the country,
c) Transform ideas into viable and creative solutions.
d) Provide consistently high returns to shareholders.
e) To grow HDFC’s main goals are
a) Through diversification by leveraging off the Existing client.

ORGANISATION STRUCTURE