CHAPTER-III

INDUSTRY PROFILE
&
COMPANY PROFILE

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A bank is a financial institution that accepts deposits and channels those deposits into
lending activities. Banks primarily provide financial services to customers while enriching
investors. Government restrictions on financial activities by banks vary over time and
location. Banks are important players in financial markets and offer services such as
investment funds and loans. In some countries such as Germany, banks have historically
owned major stakes in industrial corporations while in other countries such as the United
States banks are prohibited from owning non-financial companies. In Japan, banks are
usually the nexus of a cross-share holding entity known as the keiretsu. In France,
bancassurance is prevalent, as most banks offer insurance services (and now real estate
services) to their clients.
Introduction
India’s banking sector is constantly growing. Since the turn of the century, there has been a
noticeable upsurge in transactions through ATMs, and also internet and mobile banking.
Following the passing of the Banking Laws (Amendment) Bill by the Indian Parliament in
2018, the landscape of the banking industry began to change. The bill allows the Reserve
Bank of India (RBI) to make final guidelines on issuing new licenses, which could lead to a
bigger number of banks in the country. Some banks have already received licences from the
government, and the RBI's new norms will provide incentives to banks to spot bad loans and
take requisite action to keep rogue borrowers in check.
Over the next decade, the banking sector is projected to create up to two million new jobs,
driven by the efforts of the RBI and the Government of India to integrate financial services
into rural areas. Also, the traditional way of operations will slowly give way to modern
technology.
Market size
Total banking assets in India touched US$ 1.8 trillion in FY18 and are anticipated to cross
US$ 28.5 trillion in FY25.
Bank deposits have grown at a compound annual growth rate (CAGR) of 21.2 per cent over
FY06–18. Total deposits in FY18 were US$ 1,274.3 billion.
Total banking sector credit is anticipated to grow at a CAGR of 19.1 per cent (in terms of
INR) to reach US$ 2.4 trillion by 2019.
In FY17, private sector lenders witnessed discernable growth in credit cards and personal
loan businesses. HDFC Bank witnessed 171.6 per cent growth in personal loan disbursement
in FY17, as per a report by Emkay Global Financial Services. Axis Bank's personal loan
business also rose 49.8 per cent and its credit card business expanded by 31.1 per cent.
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Investments
Bengaluru-based software services exporter Mphasis Ltd has bagged a five-year contract
from Punjab National Bank (PNB) to set up the bank’s contact centres in Mangalore and
Noida (UP). Mphasis will provide support for all banking products and services, including
deposits operations, lending services, banking processes, internet banking, and account and
card-related services. The company will also offer services in multiple languages.
Microfinance companies have committed to setting up at least 30 million bank accounts
within a year through tie-ups with banks, as part of the Indian government’s financial
inclusion plan. The commitment was made at a meeting of representatives of 25 large
microfinance companies and banks and government representatives, which included financial
services secretary Mr GS Sandhu.
Export-Import Bank of India (Exim Bank) will increase its focus on supporting project
exports from India to South Asia, Africa and Latin America, as per Mr Yaduvendra Mathur,
Chairman and MD, Exim Bank. The bank has moved up the value chain by supporting
project exports so that India earns foreign exchange. In 2018–18, Exim Bank lent support to
85 project export contracts worth Rs 24,255 crore (US$ 3.96 billion) secured by 47
companies in 23 countries.
Government Initiatives
The RBI has given banks greater flexibility to refinance current long-gestation project loans
worth Rs 1,000 crore (US$ 173.42 million) and more, and has allowed partial buyout of such
loans by other financial institutions as standard practice. The earlier stipulation was that
buyers should purchase at least 50 per cent of the loan from the existing banks. Now, they get
as low as 25 per cent of the loan value and the loan will still be treated as ‘standard’.
The RBI has also relaxed norms for mortgage guarantee companies (MGC) enabling these
firms to use contingency reserves to cover for the losses suffered by the mortgage guarantee
holders, without the approval of the apex bank. However, such a measure can only be
initiated if there is no single option left to recoup the losses.
SBI is planning to launch a contact-less or tap-and-go card facility to make payments in
India. Contact-less payment is a technology that has been adopted in several countries,
including Australia, Canada and the UK, where customers can simply tap or wave their card
over a reader at a point-of-sale terminal, which reads the card and allows transactions.
SBI and its five associate banks also plan to empower account holders at the bottom of the
social pyramid with a customer call facility. The proposed facility will help customers get an

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update on available balance, last five transactions and cheque book request on their mobile
phones.
Road Ahead

India is yet to tap into the potential of mobile banking and digital financial services. Forty-
seven per cent of the populace have bank accounts, of which half lie dormant due to reliance
on cash transactions, as per a report. Still, the industry holds a lot of promise.
India's banking sector could become the fifth largest banking sector in the world by 2020 and
the third largest by 2025. These days, Indian banks are turning their focus to servicing clients
and enhancing their technology infrastructure, which can help improve customer experience
as well as give banks a competitive edge.
Exchange Rate Used: INR 1 = US$ 0.0173 as on October 28, 2019
The level of government regulation of the banking industry varies widely, with countries such
as Iceland, having relatively light regulation of the banking sector, and countries such as
China having a wide variety of regulations but no systematic process that can be followed
typical of a communist system.
The oldest bank still in existence is Monte dei Paschi di Siena, headquartered in Siena, Italy,
which has been operating continuously since 1772.
History
Origin of the word
The name bank derives from the Italian word banco "desk/bench", used during the
Renaissance by Jewish Florentine bankers, who used to make their transactions above a desk
covered by a green tablecloth. However, there are traces of banking activity even in ancient
times, which indicates that the word 'bank' might not necessarily come from the word 'banco'.
In fact, the word traces its origins back to the Ancient Roman Empire, where moneylenders
would set up their stalls in the middle of enclosed courtyards called macella on a long bench
called a bancu, from which the words banco and bank are derived. As a moneychanger, the
merchant at the bancu did not so much invest money as merely convert the foreign currency
into the only legal tender in Rome—that of the Imperial Mint.
The earliest evidence of money-changing activity is depicted on a silver drachm coin from
ancient Hellenic colony Trapezus on the Black Sea, modern Trabzon, c. 350–325 BC,
presented in the British Museum in London. The coin shows a banker's table (trapeza) laden
with coins, a pun on the name of the city.

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In fact, even today in Modern Greek the word Trapeza (Τράπεζα) means both a table and a
bank.
Traditional banking activities
Banks act as payment agents by conducting checking or current accounts for customers,
paying cheques drawn by customers on the bank, and collecting cheques deposited to
customers' current accounts. Banks also enable customer payments via other payment
methods such as telegraphic transfer, EFTPOS, and ATM.
Banks borrow money by accepting funds deposited on current accounts, by accepting term
deposits, and by issuing debt securities such as banknotes and bonds. Banks lend money by
making advances to customers on current accounts, by making installment loans, and by
investing in marketable debt securities and other forms of money lending.
Banks provide almost all payment services, and a bank account is considered indispensable
by most businesses, individuals and governments. Non-banks that provide payment services
such as remittance companies are not normally considered an adequate substitute for having a
bank account.
Banks borrow most funds from households and non-financial businesses, and lend most funds
to households and non-financial businesses, but non-bank lenders provide a significant and in
many cases adequate substitute for bank loans, and money market funds, cash management
trusts and other non-bank financial institutions in many cases provide an adequate substitute
to banks for lending savings to.

Entry regulation
Currently in most jurisdictions commercial banks are regulated by government entities and
require a special bank licence to operate.
Usually the definition of the business of banking for the purposes of regulation is extended to
include acceptance of deposits, even if they are not repayable to the customer's order—
although money lending, by itself, is generally not included in the definition.
Unlike most other regulated industries, the regulator is typically also a participant in the
market, i.e. a government-owned (central) bank. Central banks also typically have a
monopoly on the business of issuing banknotes. However, in some countries this is not the
case. In the UK, for example, the Financial Services Authority licences banks, and some
commercial banks (such as the Bank of Scotland) issue their own banknotes in addition to
those issued by the Bank of England, the UK government's central bank.
Accounting for bank accounts
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Bank statements are accounting records produced by banks under the various accounting
standards of the world. Under GAAP and IFRS there are two kinds of accounts: debit and
credit. Credit accounts are Revenue, Equity and Liabilities. Debit Accounts are Assets and
Expenses. This means you credit a credit account to increase its balance, and you debit a
debit account to decrease its balance.
This also means you debit your savings account every time you deposit money into it (and the
account is normally in deficit), while you credit your credit card account every time you
spend money from it (and the account is normally in credit).
However, if you read your bank statement, it will say the opposite—that you credit your
account when you deposit money, and you debit it when you withdraw funds. If you have
cash in your account, you have a positive (or credit) balance; if you are overdrawn, you have
a negative (or deficit) balance.
The reason for this is that the bank, and not you, has produced the bank statement. Your
savings might be your assets, but the bank's liability, so they are credit accounts (which
should have a positive balance). Conversely, your loans are your liabilities but the bank's
assets, so they are debit accounts (which should also have a positive balance).
Where bank transactions, balances, credits and debits are discussed below, they are done so
from the viewpoint of the account holder—which is traditionally what most people are used
to seeing.
Economic functions
1. issue of money, in the form of banknotes and current accounts subject to cheque or
payment at the customer's order. These claims on banks can act as money because
they are negotiable and/or repayable on demand, and hence valued at par. They are
effectively transferable by mere delivery, in the case of banknotes, or by drawing a
cheque that the payee may bank or cash.
2. netting and settlement of payments – banks act as both collection and paying agents
for customers, participating in interbank clearing and settlement systems to collect,
present, be presented with, and pay payment instruments. This enables banks to
economise on reserves held for settlement of payments, since inward and outward
payments offset each other. It also enables the offsetting of payment flows between
geographical areas, reducing the cost of settlement between them.
3. credit intermediation – banks borrow and lend back-to-back on their own account as
middle men.

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 4. credit quality improvement – banks lend money to ordinary commercial and personal
borrowers (ordinary credit quality), but are high quality borrowers. The improvement
comes from diversification of the bank's assets and capital which provides a buffer to
absorb losses without defaulting on its obligations. However, banknotes and deposits
are generally unsecured; if the bank gets into difficulty and pledges assets as security,
to raise the funding it needs to continue to operate, this puts the note holders and
depositors in an economically subordinated position.
5. maturity transformation – banks borrow more on demand debt and short term debt,
but provide more long term loans. In other words, they borrow short and lend long.
With a stronger credit quality than most other borrowers, banks can do this by
aggregating issues (e.g. accepting deposits and issuing banknotes) and redemptions
(e.g. withdrawals and redemptions of banknotes), maintaining reserves of cash,
investing in marketable securities that can be readily converted to cash if needed, and
raising replacement funding as needed from various sources (e.g. wholesale cash
markets and securities markets).
Law of banking
Banking law is based on a contractual analysis of the relationship between the bank (defined
above) and the customer—defined as any entity for which the bank agrees to conduct an
account.
The law implies rights and obligations into this relationship as follows:
1. The bank account balance is the financial position between the bank and the
customer: when the account is in credit, the bank owes the balance to the customer;
when the account is overdrawn, the customer owes the balance to the bank.
2. The bank agrees to pay the customer's cheques up to the amount standing to the credit
of the customer's account, plus any agreed overdraft limit.
3. The bank may not pay from the customer's account without a mandate from the
customer, e.g. a cheque drawn by the customer.
4. The bank agrees to promptly collect the cheques deposited to the customer's account
as the customer's agent, and to credit the proceeds to the customer's account.
5. The bank has a right to combine the customer's accounts, since each account is just an
aspect of the same credit relationship.
6. The bank has a lien on cheques deposited to the customer's account, to the extent that
the customer is indebted to the bank.

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 7. The bank must not disclose details of transactions through the customer's account—
unless the customer consents, there is a public duty to disclose, the bank's interests
require it, or the law demands it.
8. The bank must not close a customer's account without reasonable notice, since
cheques are outstanding in the ordinary course of business for several days.
These implied contractual terms may be modified by express agreement between the
customer and the bank. The statutes and regulations in force within a particular jurisdiction
may also modify the above terms and/or create new rights, obligations or limitations relevant
to the bank-customer relationship.
Some types of financial institution, such as building societies and credit unions, may be partly
or wholly exempt from bank licence requirements, and therefore regulated under separate
rules.
The requirements for the issue of a bank licence vary between jurisdictions but typically
include:
1. Minimum capital
2. Minimum capital ratio
3. 'Fit and Proper' requirements for the bank's controllers, owners, directors, and/or
senior officers
4. Approval of the bank's business plan as being sufficiently prudent and plausible.
Types of banks
Banks' activities can be divided into retail banking, dealing directly with individuals and
small businesses; business banking, providing services to mid-market business; corporate
banking, directed at large business entities; private banking, providing wealth management
services to high net worth individuals and families; and investment banking, relating to
activities on the financial markets. Most banks are profit-making, private enterprises.
However, some are owned by government, or are non-profit organizations.
Central banks are normally government-owned and charged with quasi-regulatory
responsibilities, such as supervising commercial banks, or controlling the cash interest rate.
They generally provide liquidity to the banking system and act as the lender of last resort in
event of a crisis.

Types of retail banks

 Commercial bank: the term used for a normal bank to distinguish it from an
investment bank. After the Great Depression, the U.S. Congress required that banks
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 only engage in banking activities, whereas investment banks were limited to capital
market activities. Since the two no longer have to be under separate ownership, some
use the term "commercial bank" to refer to a bank or a division of a bank that mostly
deals with deposits and loans from corporations or large businesses.
 Community Banks: locally operated financial institutions that empower employees to
make local decisions to serve their customers and the partners.
 Community development banks: regulated banks that provide financial services and
credit to under-served markets or populations.
 Postal savings banks: savings banks associated with national postal systems.
 Private banks: banks that manage the assets of high net worth individuals.
 Offshore banks: banks located in jurisdictions with low taxation and regulation. Many
offshore banks are essentially private banks.
 Savings bank: in Europe, savings banks take their roots in the 19th or sometimes even
19th century. Their original objective was to provide easily accessible savings
products to all strata of the population. In some countries, savings banks were created
on public initiative; in others, socially committed individuals created foundations to
put in place the necessary infrastructure. Nowadays, European savings banks have
kept their focus on retail banking: payments, savings products, credits and insurances
for individuals or small and medium-sized enterprises. Apart from this retail focus,
they also differ from commercial banks by their broadly decentralised distribution
network, providing local and regional outreach—and by their socially responsible
approach to business and society.
 Building societies and Landesbanks: institutions that conduct retail banking.
 Ethical banks: banks that prioritize the transparency of all operations and make only
what they consider to be socially-responsible investments.
 Islamic banks: Banks that transact according to Islamic principles.
Types of investment banks
 Investment banks "underwrite" (guarantee the sale of) stock and bond issues, trade for
their own accounts, make markets, and advise corporations on capital market
activities such as mergers and acquisitions.
 Merchant banks were traditionally banks which engaged in trade finance. The modern
definition, however, refers to banks which provide capital to firms in the form of
shares rather than loans. Unlike venture capital firms, they tend not to invest in new
companies.
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Both combined
 Universal banks, more commonly known as financial services companies, engage in
several of these activities. These big banks are very diversified groups that, among
other services, also distribute insurance— hence the term bancassurance, a
portmanteau word combining "banque or bank" and "assurance", signifying that both
banking and insurance are provided by the same corporate entity.
Other types of banks
 Islamic banks adhere to the concepts of Islamic law. This form of banking revolves
around several well-established principles based on Islamic canons. All banking
activities must avoid interest, a concept that is forbidden in Islam. Instead, the bank
earns profit (markup) and fees on the financing facilities that it extends to customers.

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COMPANY PROFILE

HDFC Bank is India's largest private sector bank with total assets of Rs. 5,946.42 billion
(US$ 99 billion) at March 31, 2019 and profit after tax Rs. 98.15 billion (US$ 1,637 million)
for the year ended March 31, 2019.HDFC Bank currently has a network of 3,839 Branches
and 16,943 ATM's across India.

History
1955
The Industrial Credit and Investment Corporation of India Limited (HDFC) incorporated at
the initiative of the World Bank, the Government of India and representatives of Indian
industry, with the objective of creating a development financial institution for providing
medium-term and long-term project financing to Indian businesses. Mr.A.Ramaswami
Mudaliar elected as the first Chairman of HDFC Limited.
HDFC emerges as the major source of foreign currency loans to Indian industry. Besides
funding from the World Bank and other multi-lateral agencies, HDFC was also among the
first Indian companies to raise funds from international markets.

HDFC Bank was originally promoted in 1994 by HDFC Limited, an Indian financial
institution, and was its wholly-owned subsidiary. HDFC's shareholding in HDFC Bank was
reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering
in the form of ADRs listed on the NYSE in fiscal 2000, HDFC Bank's acquisition of Bank of
Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by
HDFC to institutional investors in fiscal 2001 and fiscal 2002. HDFC was formed in 1955 at
the initiative of the World Bank, the Government of India and representatives of Indian
industry. The principal objective was to create a development financial institution for
providing medium-term and long-term project financing to Indian businesses.
 
In the 1990s, HDFC transformed its business from a development financial institution
offering only project finance to a diversified financial services group offering a wide variety
of products and services, both directly and through a number of subsidiaries and affiliates like
HDFC Bank. In 1999, HDFC become the first Indian company and the first bank or financial
institution from non-Japan Asia to be listed on the NYSE.
 
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After consideration of various corporate structuring alternatives in the context of the
emerging competitive scenario in the Indian banking industry, and the move towards
universal banking, the managements of HDFC and HDFC Bank formed the view that the
merger of HDFC with HDFC Bank would be the optimal strategic alternative for both
entities, and would create the optimal legal structure for the HDFC group's universal banking
strategy. The merger would enhance value for HDFC shareholders through the merged
entity's access to low-cost deposits, greater opportunities for earning fee-based income and
the ability to participate in the payments system and provide transaction-banking services.
The merger would enhance value for HDFC Bank shareholders through a large capital base
and scale of operations, seamless access to HDFC's strong corporate relationships built up
over five decades, entry into new business segments, higher market share in various business
segments, particularly fee-based services, and access to the vast talent pool of HDFC and its
subsidiaries.
 
In October 2001, the Boards of Directors of HDFC and HDFC Bank approved the merger of
HDFC and two of its wholly-owned retail finance subsidiaries, HDFC Personal Financial
Services Limited and HDFC Capital Services Limited, with HDFC Bank. The merger was
approved by shareholders of HDFC and HDFC Bank in January 2002, by the High Court of
Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and
the Reserve Bank of India in April 2002. Consequent to the merger, the HDFC group's
financing and banking operations, both wholesale and retail, have been integrated in a single
entity.

HDFC Group Companies

 
HDFC Group  
http://www.HDFCgroupcompanies.com HDFC Lombard General Insurance
  Company
HDFC Prudential Life Insurance Company http://www.HDFClombard.com
http://www.HDFCprulife.com/public/defa  
ult.htm HDFC Prudential AMC & Trust
  http://www.HDFCpruamc.com
HDFC Securities  
http://www.HDFCsecurities.com
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HDFC Venture HDFC Foundation
http://www.HDFCventure.com http://www.HDFCfoundation.org
   
HDFC Direct Disha Financial Counselling
http://www.HDFCdirect.com http://www.HDFCfoundation.org
 

 Board of Directors
Mr. K. V. Kamath, Chairman
..............................................
Mr. Dileep Choksi
..............................................
Mr. Homi R. Khusrokhan
..............................................
Mr. M.S. Ramachandran
..............................................
Dr. Tushaar Shah
..............................................
Mr. V. K. Sharma
..............................................
Mr. V. Sridar
..............................................
Mr. Alok Tandon
Ms. Chanda Kochhar,
Managing Director & CEO
...........................................
Mr. N. S. Kannan,
Executive Director
...........................................
Mr. K. Ramkumar,
Executive Director
...........................................
Mr. Rajiv Sabharwal,
Executive Director

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 Awards - 2019
HDFC Bank
 Ms. Chanda Kochhar received an honorary Doctor of Laws from Carleton University,
Canada. The university conferred this award on Ms. Kochhar in recognition of her pioneering
work in the financial sector, effective leadership in a time of economic crisis and support for
engaged business practices.
 Ms Chanda Kochhar featured in The Telegraph (UK) list of '16 most important
women in finance'.
 HDFC Bank has been recognised as one of the 'Top Companies for Leaders' in India
in a study conducted by Aon Hewitt.
 IDRBT has given awards to HDFC Bank in the categories of 'Social Media and
Mobile Banking' and' Business Intelligence Initiatives'.
 HDFC Bank won the award for the Best Bank - Global Business Development
(Private Sector) in the Dun & Bradstreet - Polaris Financial Technology Banking Awards
2019.
 HDFC Bank was awarded the Certificate of Recognition as one of the Top 5
Companies in Corporate Governance in the 17th ICSI (The Institute of Company Secretaries
of India) National Awards for Corporate Governance.
 HDFC Bank has been honoured as The Best Service Provider - Risk Management,
India at The Asset Triple A Transaction Banking, Treasury, Trade and Risk Management
Awards 2019.
 Mr Rakesh Jha has been ranked as the Best CFO in India at the 17th Annual Finance
Asia's Best Managed Companies Poll.
 HDFC Bank has won The Corporate Treasurer Awards 2019 in the categories of 'Best
Cash Management Bank in India' & 'Best Trade Finance Bank in India'.
 HDFC Bank has been awarded the 'Best Retail Bank in India', 'Best Microfinance
Business' and Best Retail Banking Branch Innovation' under the 'Excellence in Retail
Financial Services awards 2019' by The Asian Banker.
 Ms Chanda Kochhar, MD & CEO, HDFC Bank, has been named among Fortune's 50
most powerful women in business for the fourth consecutive year.
 Ms. Chanda Kochhar, MD and CEO received the 'Mumbai Women Of The Decade'
award by ASSOCHAM.

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 HDFC Bank, India’s largest private sector bank, today announced the launch of India’s only
credit card with a unique transparent design and a distinctive look. The ‘HDFC Bank Coral
American Express Credit Card’ is the latest addition to the Bank’s exclusive ‘Gemstone
Collection’ of credit cards.
 
Speaking at the launch, Mr. Rajiv Sabharwal, Executive Director, HDFC Bank said, "At
HDFC Bank, it is our constant endeavour to deliver innovative, powerful and distinctive
value propositions to our discerning customers. We are delighted to launch the ‘HDFC Bank
Coral American Express Credit Card’, the only card in the country with a youthful,
transparent design. Aimed at providing significant lifestyle benefits, this card re-affirms our
commitment to bring forth innovative services to our customers. We are also introducing a
host of exciting privileges including an introductory extended credit period offer and bonus
reward points on online transactions. We believe this card will be yet another compelling
addition to our Gemstone collection of credit cards."
 
Ms. Siew Choo Ng, Senior Vice President, Head of Global Network Partnerships, Asia,
American Express International, Inc. said, "We are delighted to have further strengthened
our long and cherished relationship with HDFC Bank with the launch of the new HDFC Bank
Coral American Express Credit Card. Designed to appeal to value seeking customers, the
Card reinforces our consistent endeavor to provide differentiated products and services to our
customers. The Card offers a wide array of exclusive privileges and features including
additional PAYBACK points on online spend and an innovative transparent design. At
American Express, we always strive to work closely with our partners to develop the most
relevant and compelling products for our valued card members."
 
Mr. Sanjay Rishi, President, South Asia, American Express, said, “This launch marks a
further strengthening of the relationship between HDFC Bank and American Express. We
already partner with HDFC Bank on customer loyalty programs, insurance services, retail
banking services as well as initiatives to expand card accepting merchants. The launch of the
HDFC Bank Coral American Express Card combines the strengths and capabilities of both
organizations to offer an exciting new payment choice to customers.
 
The HDFC Bank Coral American Express® Credit Card offers a wide range of attractive
benefits to its card members:
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 Extended Credit Period; a unique proposition offering card members ability to carry
over the retail purchase balances in first two billing statements by simply paying the
minimum amount due. No interest shall be charged in such cases and the total amount due
shall be payable as per the third billing statement. TnC apply, for complete details please
visit www.HDFCbank.com.
 4 PAYBACK points per Rs.150 spent on dining, groceries and at supermarkets, 3
PAYBACK points per Rs.150 of online spends and 2 PAYBACK points per Rs.150 on other
spends
 Complimentary movie tickets with 'buy one get one free' offer
on www.bookmyshow.com
 Complimentary visits to Altitude lounges at Mumbai and Delhi airports
 Minimum 19% discount on dining bills at leading restaurants across India with the
HDFC Bank ‘Culinary Treats’ programme
 No fuel surcharge on fuel transactions at HPCL fuel stations
OVERVIEW HDFC Group
HDFC Group offers a wide range of banking products and financial services to corporate and
retail customers through a variety of delivery channels and through its specialised group
companies and subsidiaries in the areas of personal banking, investment banking, life and
general insurance, venture capital and asset management. With a strong customer focus, the
HDFC Group Companies have maintained and enhanced their leadership positions in their
respective sectors.
HDFC Bank is India's second-largest bank with total assets of Rs. 4,736.47 billion (US$ 93
billion) at March 31, 2018 and profit after tax Rs. 64.65 billion (US$ 1,271 million) for the
year ended March 31, 2018. The Bank has a network of 2,791 branches and 15,021 ATMs in
India, and has a presence in 19 countries, including India.
HDFC Prudential Life Insurance is a joint venture between HDFC Bank, a premier financial
powerhouse, and Prudential plc, a leading international financial services group
headquartered in the United Kingdom. HDFC Prudential Life was amongst the first private
sector insurance companies to begin operations in December 2000 after receiving approval
from Insurance Regulatory Development Authority (IRDA). HDFC Prudential Life's capital
stands at Rs. 47.91 billion (as of March 31, 2018) with HDFC Bank and Prudential plc
holding 74% and 26% stake respectively. For FY 2018, the company garnered Rs.170.22
billion of total premiums and has underwritten over 18 million policies since inception. The
company has assets held over Rs. 709.71 billion as on March 31, 2018.
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HDFC Lombard General Insurance Company, is a joint venture between HDFC Bank
Limited, India's second largest bank with consolidated total assets of over USD 91 billion at
March 31, 2018 and Fairfax Financial Holdings Limited, a Canada based USD 30 billion
diversified financial services company engaged in general insurance, reinsurance, insurance
claims management and investment management. HDFC Lombard GIC Ltd. is the largest
private sector general insurance company in India with a Gross Written Premium (GWP) of
Rs. 5,358 crore for the year ended March 31, 2018. The company issued over 76 lakh policies
and settled over 44 lakh claims and has a claim disposal ratio of 99% (percentage of claims
settled against claims reported) as on March 31, 2018. 
HDFC Securities Ltd is the largest integrated securities firm covering the needs of corporate
and retail customers through investment banking, institutional broking, retail broking and
financial product distribution businesses. Among the many awards that HDFC Securities has
won, the noteworthy awards for 2018 were: Asiamoney `Best Domestic Equity House for
2018; 'BSE IPF D&B Equity Broking Awards 2018' under two categories:- Best Equity
Broking House - Cash Segment and Largest E-Broking House; the Chief Learning Officer
Award from World HRD Congress for Innovation in Learning category. IDG India's CIO
magazine has recognized HDFC Securities as a recipient of CIO 150 award in 2015, 2016,
2017 and 2018. I-Sec won this awards 4 times in a row for which the CIO Hall of Fame
award was additionally conferred in 2018.
HDFC Securities Primary Dealership Limited (‘I-Sec PD’) is the largest primary dealer in
Government Securities. It is an acknowledged leader in the Indian fixed income and money
markets, with a strong franchise across the spectrum of interest rate products and services -
institutional sales and trading, resource mobilisation, portfolio management services and
research. One of the first entities to be granted primary dealership license by RBI, I-Sec PD
has made pioneering contributions since inception to debt market development in India. I-Sec
PD is also credited with pioneering debt market research in India. It is one of the largest
portfolio managers in the country and amongst PDs, managing the largest AUM under
discretionary portfolio management.
I-Sec PD’s leadership position and research expertise have been consistently recognised by
domestic and international agencies. In recognition of our performance in the Fixed Income
market, we have received the following awards:
 “Best Domestic Bond House” in India - 2010, 2006, 2005, 2002 by Asia Money
 “Best Bond House” - 2015, 2010, 2009, 2006, 2005, 2001 by Finance Asia
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  “Best Domestic Bond House” – 2015 by The Asset Magazine’s annual Triple A
Country Awards
 Ranked volume leader - by Greenwich Associates in 2016 Asian Fixed-Income
Investors Study. Ranked 5th in ‘Domestic Currency Asian Credit’ with market share
of 4.5%, Only Domestic entity to be ranked.
 “Best Debt House in India” – 2018 by EUROMONEY
HDFC Prudential Asset Management is the third largest mutual fund with average asset
under management of Rs. 688.17 billion and a market share ( mutual fund ) of 15.34% as on
March 31, 2018. The Company manages a comprehensive range of mutual fund schemes and
portfolio management services to meet the varying investment needs of its investors
through167 branches and 196 CAMS official point of transaction acceptance spread across
the country. 

HDFC Venture is one of the largest and most successful alternative asset managers in India
with funds under management of over US$ 2 billion. It has been a pioneer in the Indian
alternative asset industry since its establishment in 1988, having managed several funds
across various asset classes over multiple economic cycles. HDFC Venture is a wholly owned
subsidiary of HDFC Bank
GROUP PHILOSOPHY
As India transforms into a key player in the global economic arena, multiple opportunities for
the financial services sector have emerged. We, at HDFC Group, seek to partner the country's
growth and globalization through the delivery of world-class financial services across all
cross-sections of society.
From providing project and working capital finance to the buoyant manufacturing and
infrastructure sectors, meeting the foreign investment and treasury requirements of the Indian
corporate with increasing levels of international engagement, servicing the India linked needs
of the growing Indian diaspora, being a catalyst to the consumer finance story to serving the
financially under-served segments of the society, our technology empowered solutions and
distribution network have helped us touch millions of lives.
Vision:
To be the leading provider of financial services in India and a major global bank.
Mission:
We will leverage our people, technology, speed and financial capital to:

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 be the banker of first choice for our customers by delivering high quality, world-class
products and services.
 expand the frontiers of our business globally.
 play a proactive role in the full realisation of India’s potential.
 maintain a healthy financial profile and diversify our earnings across businesses and
geographies.
 maintain high standards of governance and ethics.
 contribute positively to the various countries and markets in which we operate.
 create value for our stakeholders.

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