HDFC Bank Limited 

is an Indianfinancial services company based in Mumbai,

Maharashtra that was incorporated in August 1994. HDFC Bank is the fifth largest bank in India
by assets and the largest bank bymarket capitalization as of 1 November 2012. The bank was
promoted by the Housing Development Finance Corporation, a premier housing finance
company (set up in 1977) of India. As on August 2013, HDFC Bank has 3,119 branches and
11,088 ATMs, in 1,891 cities in India, and all branches of the bank are linked on an online real-
time basis. [3] As of December 2012 the bank had balance sheet size of Rs. 3837 billion. For the
fiscal year 2011-12, the bank has reported net profit of  5167.07 crore (US$790 million), up
31.6% from the previous fiscal.

On 14 March 2013 an online magazine named Cobrapost.com released video footage

fromOperation Red Spider showing high ranking officials and some employees of HDFC bank
willing to turn black money into white which is violation of Money Laundering Control Act.
Following this the government of India and RBI have ordered an inquiry.[4][5][6] The enquiry
confirmed violation of KYC (Know Your Customer) norms by HDFC Bank. A penalty of Rs 45
million was imposed on the bank by RBI.[7]

HDFC Bank was incorporated in 1994 by Housing Development Finance Corporation

Limited (HDFC), India's largest housing finance company. It was among the first companies to
receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the
private sector. The Bank started operations as a scheduled commercial bank in January 1995
under the RBI's liberalisation policies.

On 26 February 2000 Times Bank Limited owned by The Times Group (Bennett, Coleman &

Co.) was merged with HDFC Bank Ltd. This was the first merger of two private banks in India.
Shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times
Bank.

On 23 May 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total branches to
more than 1,000. The amalgamated bank emerged with a base of about Rs. 1,22,000 crore and
net advances of about Rs.89,000 crore. The balance sheet size of the combined entity is more
than Rs. 1,63,000 crore.[citation needed]
 HDFC BANK: STRUCTURE

VISION OF HDFC BANK

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HDFC Bank is a young and dynamic bank, with a youthful and enthusiastic team determined to
accomplish the vision of becoming a world-class Indian bank.

Our business philosophy is based on four core values - Customer Focus, Operational Excellence,
Product Leadership and People. They believe that the ultimate identity and success of bank will
reside in the exceptional quality of their people and their extraordinary efforts. For this reason,
we are committed to hiring, developing, motivating and retaining the best people in the industry.

MISSION

HDFC mission is to be "a World Class Indian Bank", benchmarking ourselves 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. They committed to do this while ensuring the highest
levels of ethical standards, professional integrity, corporate governance and regulatory
compliance.

HDFC BANK TRIES TO MAINTAIN RELATIONSHIP WITH CUSTOMER IN

FOLLOWING WAYS:

HDFC BANK GIVIES INFORMATION:

You can get information on interest rates, common fees and charges through any one of the
following: Looking at the notices in our branches; phoning our branches or help-lines; Looking
on our website; Asking our help desk; Referring to the service guide.
HDFC BANK HELPS YOU TO UNDERSTAND HOW THERE FINANCIAL
PRODUCTS AND SERVICES WORK BY:

 HDFC Bank provides you information about them in any one or more of the following
languages: Hindi, English or the appropriate local language.
 Ensuring that there advertising and promotional literature is clear and not misleading.
 Ensuring that you are given clear information about their products and services, the terms
and conditions and the interest rates/service charges, which apply to them.
 HDFC Bank provides you information on what are the benefits to you,
 How you can avail of the benefits, and whom you can contact for addressing you queries.
 Advise you what information/documentation we need from you

HDFC BANK HELP YOU USE YOUR ACCOUNT OR SERVICE BY:

 Provides you a Relationship manager or personal banker which helps you in assisting
your transactions.

 Providing you regular appropriate updates.

 Keeping you informed about changes in the interest rates, charges or terms and
conditions.

BEFORE YOU BECOME A CUSTOMER HDFC BANK WILL:

 Give you clear information explaining the key features of the services and products you
tell us you are interested in;

 Give you information on any type of products and services which we offer and that may
suit your needs;

 Tell you if it offers products and services in more than one and tell you how to use them;

 Tell you what information we need from you to prove your identity and address

DEAL QUICKLY AND EFFECTIVELY WITH YOUR QUERIES AND COMPLAINTS

BY:

 Offering channels for you to route your queries.

  Listening to you patiently.

 Accepting our mistakes, if any.

 Correcting mistakes/ implementing changes to address your queries.

 Communicating our response to you promptly.

 Telling you how to take your complaint forward if you are not satisfied with the
response.

HDFC BANK ENSURES TO ENSURE SATISFACTION OF CUSTOMERS:

 Promote good and fair banking practices by setting minimum standards in dealing with
you

 Increase transparency so that you can have a better understanding of what you can
reasonably expect of the services;

 Encourage market forces, through competition, to achieve higher operating standards;

 Assisting a personal banker to customers who can look after his accounts and give timely
updates.

 Promote a fair and friendly relationship between you and your bank;

 Promote confidence in the banking system.

INDUSTRY/SECTOR PROFILE
BANK:

A bank is defined as a commercial institution licensed as a receiver of deposits and giver of loans
– both short and long term.

Section 5(1)(B) of banking Regulation Act, 1949 defines banking as, “the accepting for the
purpose of lending or investment, of deposits from the public, repayable on demand or
otherwise, and withdrawal by cheque, draft, order or otherwise”.

BANKING

Definition of banking

Banking in a traditional sense is the business of accepting deposits money from public for the
purpose of lending and investments. These deposits can have a distinct feature of being
withdrawal by cheques, which no other financial institution can offer.

Dr. Paget in Law of Banking states, “No one and no body, corporate or otherwise, can be a
banker who does not:

i. Conduct Current Accounts

ii. Pays cheques drawn on himself

iii. Collects cheques for his customers

Banking in India is fairly mature in terms of supply, product range and reach-even through the
reach in rural India still remain a challenge for the private sector and foreign banks. In terms of
quality of assets and capital adequacy, Indian banks are considered to have a clean, strong and
transparent balance sheet relative to other banks in comparable economics in its region. The
autonomous body (self-governing) has minimal pressure from the government. The stated policy
of the bank on Indian rupees is to manage volatility but without any fixed exchange rate and this
has mostly been true.

With the growth in Indian economy expected to be strong for quite some time especially in its
service sector the demand for banking services, especially retail banking, mortgages and
investment services are expected to be great.
Without a sound and effective banking system in India it cannot have a healthy economy. The
banking system of India should not only be hassle free but it should be able to meet new
challenges posed by the technology and any other external and internal factors.

For the past three decades India's banking system has several outstanding achievements to its
credit. The most striking is its extensive reach. In fact, Indian banking system has reached even
to the remote corners of the country. This is one of the main reasons of India's growth process.

ABOUT RESERVE BANK OF INDIA

A central bank, reserve bank or monetary authority is the entity responsible for the monetary
policy of a country or a group of member of state. It prime responsibility is to maintain the
stability of national currency and money supply, but more active duties includes controlling
subsidize-loan, interest rates and acting as a lender or last resort to the banking sector during
financial crises. It could also have supervisory powers, to ensure that banks and other financial
institutions do not behave recklessly or fraudulently.

The RBI handles the cash reserves of other banks in the country. It acts as a "Bank of Banks". It
makes the transactions or transfers of money and payments occurring between the banks much
easier

FUNCTIONS OF RBI

The functions are classified into three heads, viz.,

A) Traditional functions

B) Promotional functions and

C) Supervisory functions. Let’s see the detailed account in these heads.,

A) Traditional functions

1. Monopoly of currency notes issue

2.Agent and advisor to the Government

3.Custodian of the foreign exchange reserves

4. Maintaining the external value of domestic currency

5.Ensures the internal value of the currency

6.Publishes the Economic statistical data

7.Fight against economic crisis and ensure stability of Indian economy.

8. The banker to the Government of India and the State governments. It manages the public debt.
It undertakes to accept money on behalf of the Government and make payment on its behalf etc.
B) Promotional functions

1. Provides refinance for export promotion.

2. Expansion of the facilities for the provision of the agricultural credit through NABARD.

3. Extension of the facilities for the small scale industries.

4. Helping the Co-operative sectors.

5. Prescribe the minimum statutory requirement.

6. Innovating the new banking business transactions.

C) Supervisory functions

1. Granting license to Banks.

2. Inspects and makes enquiry or determine position in respect of matters under various sections
of RBI and Banking regulations.

3. Periodical review of the work of the commercial banks.

4. Giving instruction to commercial banks.

5. Control the non-banking finance corporation.

6. Ensuring the health of financial system through on-site and off-site.

 BANKING STRUCTURE IN INDIA

Scheduled Banks in India

(A) Scheduled Commercial Banks

Public sector Private sector Foreign Banks Regional Rural

Banks Banks in India Bank

(27) (29) (31) (133)

 Nationalized  Old Private

Bank Banks

 Other Public  New Private

Sector Banks Banks

(IDBI)

 SBI and its

Associates

(B) Scheduled Cooperative Banks

Scheduled Urban Cooperative Scheduled State Cooperative

Banks (55) Banks (31)

Here we are more concerned about private sector banks and competition among them. Today, there
are 29 private sector banks in the banking sector: comprising of mixture of old Private sector banks
and some new private sector banks.

These new banks have brought in state-of-the-art technology and aggressively marketed their
products. The Public sector banks are facing a stiff competition from the new private sector banks.
The banks which have been setup in the 1990s under the guidelines of the Narasimham Committee
are referred to as NEW PRIVATE SECTOR BANKS.

PUBLIC SECTOR BANKS

Public sector banks are those in which the Government of India or the RBI is a majority
shareholder. These banks include the State Bank of India (SBI) and its subsidiaries, other
nationalized banks, and Regional Rural Banks (RRBs). Over 70% of the aggregate branches in India
are those of the public sector banks.

The following are the list of Public Sector Banks in India

 Allahabad Bank

 Andhra Bank

 Bank of Baroda

 Bank of India

 Bank of Maharashtra

 Canara Bank

 Central Bank of India

 Corporation Bank

 Dena Bank

 Indian Bank

 Indian Overseas Bank

 Oriental Bank of Commerce

  Punjab & Sind Bank

 Punjab National Bank

 Syndicate Bank

 UCO Bank

 Union Bank of India

 United Bank of India

 Vijaya Bank

List of State Bank of India and its subsidiary, a Public Sector Banks

 State Bank of India

 State Bank of Bikaner & Jaipur

 State Bank of Hyderabad

 State Bank of Indore

 State Bank of Mysore

 State Bank of Saurastra

 State Bank of Travancore

PRIVATE SECTOR BANKS:

Private banking in India was practiced since the beginning of banking system in India. The first
private bank in India to be set up in Private Sector Banks in India was IndusInd Bank. It is one of
the fastest growing Bank Private Sector Banks in India. IDBI ranks the tenth largest development
bank in the world as Private Banks in India and has promoted world class institutions in India.

The first Private Bank in India to receive an in principle approval from the Reserve Bank of
India was Housing Development Finance Corporation Limited, to set up a bank in the private
sector banks in India as part of the RBI's liberalization of the Indian Banking Industry.

ING Vysya, yet another Private Bank of India was incorporated in the year 1930. Bangalore has
a pride of place for having the first branch inception in the year 1934. With successive years of
patronage and constantly setting new standards in banking, ING Vysya Bank has many credits to
its account.

List of Private Banks in India

 Bank of Punjab

 Bank of Rajasthan

 Catholic Syrian Bank

 Centurion Bank

 City Union Bank

 Dhanalakshmi Bank

 Development Credit Bank

 Federal Bank

 HDFC Bank

 ICICI Bank

 IDBI Bank

 IndusInd Bank

 ING Vysya Bank

 Jammu & Kashmir Bank

 Karnataka Bank

 Karur Vysya Bank

 Laxmi Vilas Bank

 South Indian Bank

 United Western Bank

FOREIGN BANKS

The operations of foreign banks, though similar to that of other commercial Indian banks, are
mainly confined to metropolitan areas. Foray of foreign banks depends on reciprocity, economic
and political bilateral relations. An inter-departmental committee has been set up to endorse
applications for entry and expansion. Foreign banks, in the wake of the liberalization era, are
looking to expand and diversify. Some of the leading foreign banks that operate in India are
Citibank; Standard Chartered Grind lays Bank, Hong Kong Shanghai Banking Corporation,
Bank of America, Deutsche Bank, Development Bank of Singapore and Banque National De
Paris.

BANKS IN INDIA

In India the banks are being segregated in different groups. Each group has their own benefits
and limitations in operating in India. Each has their own dedicated target market. Few of them
only work in rural sector while others in both rural as well as urban. Many even are only catering
in cities. Some are of Indian origin and some are foreign players.

All these details and many more is discussed over here. The banks and its relation with the
customers, their mode of operation, the names of banks under different groups and other such
useful information’s are talked about.

One more section has been taken note of is the upcoming foreign banks in India. The RBI has
shown certain interest to involve more of foreign banks than the existing one recently. This step
has paved a way for few more foreign banks to start business in India.
 Major Banks in India
 Indian Overseas Bank
 ABN-AMRO Bank
 IndusInd Bank
 Abu Dhabi Commercial Bank
 ING Vysya Bank
 American Express Bank
 Jammu & Kashmir Bank
 Andhra Bank
 Karnataka Bank
 Allahabad Bank
 Karur Vysya Bank
 Bank of Baroda
 Laxmi Vilas Bank
 Bank of India
 Oriental Bank of Commerce
 Bank of Maharashtra
 Punjab National Bank
 Bank of Punjab
 Punjab & Sind Bank
 Bank of Rajasthan
 South Indian Bank
 Canara Bank
 Standard Chartered Bank
 Central Bank of India
 State Bank of India (SBI)
 Centurion Bank
 State Bank of Bikaner &
 China Trust Commercial Bank
Jaipur
 Citi Bank
 State Bank of Hyderabad
 Corporation Bank
 State Bank of Indore
 Dena Bank
 State Bank of Mysore
 Deutsche Bank
 State Bank of Saurastra
 Development Credit Bank
 State Bank of Travancore
 Dhanalakshmi Bank
 Syndicate Bank
 Federal Bank
 UCO Bank
 HDFC Bank
 Union Bank of India
 HSBC ICICI Bank
 United Bank of India
 IDBI Bank
 United Bank Of India
 Indian Bank
 UTI Bank