A

SYNOPSIS REPORT
ON
CAPITAL MARKETING
AT
HDFC BANK

Submitted
By
KARTHIK
H.T.NO: ***
PROJECT SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE
OF

MASTER OF BUSINESS ADMINISTRATION

Department of Business Administration

AURORA’S PG COLLEGE
PEERZADIGUDA
(Affiliated to Osmania University)
2023-2024
 Aurora’s PG College ,PEERZADIGUDA
Department of Management

SYNOPSIS

Title of the Project : CAPITAL MARKETING

Student Name :KARTHIK

Hall Ticket Number : ***

Signature of the Student :

Signature of the Guide :

 INDEX
.No. CONTENTS PageNo

1 TITLE OF THE PROJECT

2 STATEMENT OF THE PROBLEM

3 INTRODUCTION

4 AIMS AND OBJECTIVES

1) NATURE OF THE STUDY
2) SCOPE OF THE STUDY
3) DATA COLLECTION METHODS
4) TOOLS FOR ANALYSIS
5) CHAPTERISATION
 INTRODUCTION

When people, organisations, and governments have more resources than they need (since
they save some of their income) and want to transfer those resources to other people, entities,
or governments who lack the necessary resources, that situation is known as a capital
opportunity. One or two major money markets are stock and bond possibilities. Money
markets promote economic potential by transferring capital from those who would not have
an immediate, constructive use for it to your people who do.

Money regions provide the enticing economic function of money to purpose that is
successful. The savers (governments, businesses, and other individuals who only save a
portion of their own income) invest their money in stock and bond markets. The financial
assets that the savers have trusted to the investment market are borrowed by the borrowers
(governments, enterprises, and people who spend more than they earn).

Assume, for instance, that A and B rs produce 50,000 in a single season but only spend Rs.
40,000 on expenses. They may put the 10,000, which represents her economy, into a global
investment that includes stocks and bonds. They are aware that making this particular
investment was riskier than keeping the $10,000 in their home or in a bank account. They do,
however, anticipate that over time, the financial will provide bigger returns than cash assets
or income on savings accounts. Businesses who issued the shares or ties that are a component
of the shared fund profile are included as borrowers in this scenario. Because continuing
businesses have spending needs that are greater than their individual sources of revenue, they
finance their capital expenditures by providing securities.

Classification of Capital Markets

 Capital Market

Primary Market Secondary Market

Stock
Private Exchange
Public Issue RightIssue Bonus Issue Placement

Primary markets:

New securities, mostly stocks and bonds, are issued on the main market. In the primary
market, the business or government entity that needs money (the borrower) offers securities
to buyers. This issuance procedure is supported by large investment banks. The securities are
underwritten by banks. In other words, they offer securities issued by a company to the
general public while guaranteeing a minimum price. The primary market is less significant
than the secondary market since it can only be used to issue new securities.

Securities are generated in the primary market. Firms initially offer new stocks and bonds to
the public (float them) on this market. The main market, as used here, refers to the market
where an initial public offering (IPO) takes place. An initial public offering (IPO) is simply
the first time a private firm sells shares to the general public. Governments and other public
sector organisations generate money on the primary market by selling bonds.The fact that
securities are bought directly from an issuing corporation is crucial to comprehending the
primary market.

Capital or equity can be raised in primary market by any of the following four ways:

1. Public Issue:As the name suggests, public issue means selling securities to public at
large, such as IPO. It is the most vital method to sell financial securities.

IPO's - Year Wise (IPO's in India Share Market)

 Year No. Of IPO Amount Issue Succeed Issue
raised (in Failed
Rs. Cr)
2012 108 33,946.22 104 4
2013 39 18,339.92 36 3
2014 22 19,306.58 21 1
2015 66 36,362.18 64 2
2016 40 6,043.57 37 3
2017 13 6,770.17 11 2
2018 5 1,283.95 3 2
2019 7 1,200.94 5 2
2020 21 11,362.30 21 0
2021 27 26,372.48 26 1
2022 35 70,714.41 35 0

2. Rights Issue: Whenever a company needs to raise supplementary equity capital, the shares
have to be offered to present shareholders on a pro-rata basis, which is known as the Rights
Issue.

3.Bonus Issue:A bonus issue, also known as a scrip issue or a capitalization issue, is an offer
of free additional shares to existing shareholders. A company may decide to distribute further
shares as an alternative to increasing the dividend payout. For example, a company may give
one bonus share for every five shares held.

4. Private Placement: Under private placement, selling assets to a select group of

sophisticated buyers such as regular buyers, venture capital firms, mutual funds, and banks is
involved.

Since it is the market for issuing long-term equity capital, the main market is often referred to
as the New Issue Market (NIM). Companies are responsible for issuing security certificates
as well since they directly distribute securities to investors. The issuance of new securities
promotes economic expansion.

A SECONDHAND MARKET
The secondary market is where the great majority of capital deals are made. Stock exchanges
(such as the New York Stock Exchange and the Tokyo Nikkei), bond markets, and futures
and options markets are a few examples of the secondary market. The trading of securities
takes place on each of these secondary marketplaces.

The market where securities are traded is this one. Equity and debt markets are both included
in the secondary market.

In the primary market, the public is offered newly issued securities by a corporation. The
stock is traded on the secondary market after the IPO is complete and it is listed. In the
primary market, an investor acquires securities directly from the firm via initial public
offerings (IPOs), but in the secondary market, one obtains securities from other investors
eager to sell the same.

Some of the important items offered in a secondary market include equity shares, bonds,
preference shares, treasury bills, debentures, etc. The same is governed by SEBI.

NEED OF THE STUDY

It is to determine which kind of instruments individuals wish to invest in.

To evaluate the Indian capital markets

SCOPE OF STUDY

 Investors may evaluate the financial health of the firm and external influences on the
business. The study's scope is constrained. We might claim that 70% of the research is
beneficial to investors, while the remaining 30% is based on market sentiment.
 The subject is chosen to assess the elements based on the company's fundamentals
that may impact its future earnings per share (EPS).
 Investors, shareholders, and creditors may all benefit from the market position of the
firm that was researched in order to broaden the analysis' application.
OBJECTIVE OF THE STUDY

 To research capital market investors' perceptions of the market and their investing
practises.
 To determine the issues investors encountered when trading with brokers.
 To investigate the degree to which investors are satisfied with the different
services supplied by the broker relationship.
 To get a basic understanding of the securities trading system
 .
 RESEARCH DESIGN:
Descriptive Research Design
Descriptive research is a study designed to depict the participants in an accurate way. The
three main ways to collect this information are: Observational, defined as a method of
viewing and recording the participants. Case study, defined as an in-depth study of an
individual or group of individuals.

Data Source
Primary Sources
These include the survey or questionnaire method as well as the personal interview methods
of data collection.
Secondary Sources

These include books, the internet, company brochures, product brochures, the company
website, competitor’s websites, newspaper articles etc.

Data collection instrument was structured schedule.

Questionnaire:-Schedule reservation filled with data by asking questions from respondents.

Sample Design:-

Sample Unit:-Customer of HDFC Bank in Hyderabad City.

Scope of the study: - Scope of the study is Limited to Hyderabad City.

Time Frame: - 45 Days

Sampling Frame: - Hyderabad City

Sample Technique: Simple Random Techniques
Sample Size: 200

Limitations of the study

 The number of respondents include for the study is limited due to the time constraints.
 All the findings and observations made in this study are purely based on respondents
answer; the response may be due to personal factor.
 Since the sample is very small when compared to the universe the findings and
suggestions made are not applicable to the universe.
 This study has contained only Hyderabad population.
 Some of the respondents were reluctant to share information with the researcher.
 CHAPTER – II
REVIEW OF LITERATURE

In his research paper "Indian Capital Markets Reforms, 1992-96 An Evaluation," Subir
Gokarn (2019) uses a conceptual framework that draws on the ideas of law on the one hand
and the new governmental economy on the other to create an analysis of the extensive
reforms that have been started for the Indian market over the past four decades. According to
the framework, different reforms are divided into groups based on their regulatory efficacy
and impact on the root causes of market issues. The researcher discovers a generally positive
evaluation associated with the reforms, but highlights three aspects of concern: having less of
a strict time period session for your regulators; the identification of anti-competitive
conditions shopping; and the excessive entry of the newest scripts into the market. Despite
the fact that today, certain measures have been taken to handle this issue at the same time.

Anand Pandey (2020), in his thesis titled "Efficiency of Indian Stock Market," compared
three major stocks in order to illustrate the degree and arbitrary nature of cash markets.
Evidence for an inefficient kind of Indian market was presented in the lesson. The
examination of autocorrelation and works test revealed that the various stock indexes in India
are skewed time shows that are random.

In his study report titled "Efficiency of Indian Capital Market to react effectively with the
announcement of quarterly earnings: a report in investment items Industry," Selvam M.
(2018) noted that an effective and money-integrated infrastructure is just a crucial component
that supports the formation of investments. The capacity of financial institutions and
investment firms to make investments will determine how productively capital accumulation
was maintained. When the price of securities imprisons the returns and impacts of that
product in full, a money market is said to be efficient in relation to the information that has
been presented. The most recent empirical study evaluated the informative outcomes of
Indian investment regions in relation to the quarterly earnings disclosed by the organisations
in the automotive sector within the semi-strong type EMH. The investigation revealed that
the Indian Capital Market is almost practicable from within the powerful semi-form that is
used by the traders to earn abnormal gains.
In her paper "A Project on Investment Industry," Jumba Shelly (2019), determined that one of
the factors that may have a direct influence on the state of the money market in a nation is the
effectiveness of the providers' or businesses' revenues. Weak firm profits show that, since per
capita incomes have been growing slowly, fewer products and services are needed across the
economy. Slow growth in the workplace might be a result of slow increase in demand, which
signifies slow growth that will need support in the near future. Therefore, when you look at
the virtually label, poor company profits signify ordinary or maybe certainly not fantastic
possibilities for any atmosphere that is economic. There was a bear market-like situation in
this sort of scenario since the investors (both local and international) would fluctuate to
purchase the major city market. The face-to-face interactions from it can be a strong
corporation with a unique distinction in the investing industry.The study also noted that the
city's main industry is likewise impacted by the macroeconomic statistics. It includes the
monthly release of the Index of Business Production (IIP), the weekly distribution of the
Wholesale Price Directory (WPI), the monthly announcement of the Export-Import figures,
the monthly release of the Centre Companies Growth Rate (which includes the monthly
release of the six infrastructure that is major: Coal, Crude Petroleum, Refining, Electricity,
Concrete, and Finished Steel), etc. The macroeconomic indicators point to an expanding
economy and suggest that the financial environment has affected India's major cities'
marketplaces.

There has been a paradigm change in Indian investment fields, according to Ahuja Juhi
(2019), who analysed this in her data paper titled Capital that is "Indian Market a Synopsis
Having Its Increases." The implementation of several reforms & improvements in the Indian
financial markets has made domestic capital equivalent to foreign capital. With growing
market capitalization, industry exchangeability, and technique mobilisation, the market
nowadays has a developed regulatory mechanism and a most recent industry system. A
excellent creative replacement for the financial environment of company financing is the
advent of personal business debt. However, the most recent global economic crisis, which
started in the US sub-prime home loan sector and extended to the rest of the globe as a
contagion, has given the market a glimpse of its darkest moment. The slow-moving
exhibition was provided by Asia's major cities' industries.

Geetha et al. (2017) attempted to evaluate the risk return characteristics of 10 significant
professional sectors that account for 88.74% of the nation's industrial output in their research
paper titled "Capital Market in India: a Sectorial Comparison." A comparative examination
was carried out throughout the

danger, overall volatility, indicated volatility, and named beta. Volatility is a metric for
gauging deviation from the average or standard return on investments. It is often determined
that NSE indexes saw additional volatility between the years 2007 and 2009, when the
market started to display a positive trend and the stock market reached its top points. Due to
the economic difficulties in the USA that affected other markets in 2008, the market showed
a downward trend. Due to institutional overseas investment expecting volatility in may, 2006,
in-may 2006. When investing in the stock market, the customer should evaluate factors like
market efficiency, coverage modification announcements, rising and falling interest rates,
national rules, and assurance in worry regions. Some of these issues have a significant impact
on the cash sector and will be researched to learn more about the nation's financial status.

Ansari Mohd Shamim's study paper from 2019 titled "Indian Capital industry Evaluation:
Issues, measurements and Performance comparison" is another excellent contribution in this
area. The expert has actually found that the reason for an efficient money market is to
mobilise funds from people who have them and route each of them to the ones that can apply
them in the easiest way that is practical. Additionally, the expert assessed how unbalanced
and multifaceted the Indian financial industry is. Additionally, it has been claimed that the
Indian financial markets endured a great deal of inventiveness in method and phrase law
throughout the most recent summer. The researcher said that Asia needs a breakthrough
financial instrument for their home investment industry as she was wrapping up her
presentation. Financial progress must focus on incorporating values into modern engineering,
opportunities management strategies, credit systems, procedures, and goods. The researcher's
observations indicate that there is unquestionably a favourable association between financial
growth and investment. Therefore, without a high level of growth in financial markets,
economic progress is all but impossible. The expert has also said that the ability to raise long-
term debt makes the generation of deep and strong loans capital units essential to the finance
system. The expert has finally come to the conclusion that emerging economies like Asia
benefit from having access to the knowledge of others' problems.

An further significant section may be found in Shaik Abdul Majeeb Pasha's (2018) research
paper, "An Evolutionary Critical strategy on Indian Capital Market Developments." Through
this paper, the researcher hopes to critically evaluate India's capital markets system as well as
the Securities and Trade Board of Asia's (SEBI) role. The researcher has studied various
types of changes that have occurred in Indian capital markets before and after the
globalisation, liberalisation, and privatisation (GLP) era. With a few minor exceptions, it has
been found that the Indian Capital Market complies with all international standards for
operational and organised risk management, settlement programmes, disclosures, and
accounting procedures. In summarising, it has been momentarily noted that a notion is in
reality progressively emerging with respect to the Indian capital market, which is a dynamic
market.
INDUSTRY PROFILE:
Introduction
As per the Reserve Bank of India (RBI), India’s banking sector is sufficiently capitalised and
well-regulated. The financial and economic conditions in the country are far superior to any
other country in the world. Credit, market and liquidity risk studies suggest that Indian banks
are generally resilient and have withstood the global downturn well.
Indian banking industry has recently witnessed the roll out of innovative banking models like
payments and small finance banks. RBI’s new measures may go a long way in helping the
restructuring of the domestic banking industry.
The digital payments system in India has evolved the most among 25 countries with India’s
Immediate Payment Service (IMPS) being the only system at level five in the Faster
Payments Innovation Index (FPII). *
Market Size
The Indian banking system consists of 12 public sector banks, 22 private sector banks, 46
foreign banks, 56 regional rural banks, 1485 urban cooperative banks and 96,000 rural
cooperative banks in addition to cooperative credit institutions. As of September 2023, the
total number of ATMs in India increased to 210,049 and is further expected to increase to
407,000 by 2022.
Asset of public sector banks stood at Rs. 107.83 lakh crore (US$ 1.52 trillion) in FY20.
During FY16-FY20, bank credit grew at a CAGR of 3.57%. As of FY20, total credit
extended surged to US$ 1,698.97 billion.
During FY16-FY20, deposits grew at a CAGR of 13.93% and reached US$ 1.93 trillion by
FY20. Credit to non-food industries stood at Rs. 103.46 trillion (US$ 1.40 trillion) as of
November 20, 2023.
Investments/Developments
Key investments and developments in India’s banking industry include:

 On November 6, 2023, WhatsApp started UPI payments service in India on receiving

the National Payments Corporation of India (NPCI) approval to ‘Go Live’ on UPI in a
graded manner.
 In October 2023, HDFC Bank and Apollo Hospitals partnered to launch the
‘HealthyLife Programme’, a holistic healthcare solution that makes healthy living
accessible and affordable on Apollo’s digital platform.
  In 2022, banking and financial services witnessed 32 M&A (merger and acquisition)
activities worth US$ 1.72 billion.
 In March 2023, State Bank of India (SBI), India’s largest lender, raised US$ 100
million in green bonds through private placement.
 In February 2023, the Cabinet Committee on Economic Affairs gave its approval for
continuation of the process of recapitalization of Regional Rural Banks (RRBs) by
providing minimum regulatory capital to RRBs for another year beyond 2022-20 - till
2023-21 to those RRBs which are unable to maintain minimum Capital to Risk
weighted Assets Ratio (CRAR) of 9% as per the regulatory norms prescribed by RBI.
 In October 2022, Department of Post launched the mobile banking facility for all post
office savings account holders of CBS (core banking solutions) post office.
 Deposits under Pradhan Mantri Jan Dhan Yojana (PMJDY) stood at Rs. 1.06 lakh
crore (US$ 15.17 billion.
 In October 2022, Government e-Marketplace (GeM) signed a memorandum of
understanding (MoU) with Union Bank of India to facilitate a cashless, paperless and
transparent payment system for an array of services.
 In August 2022, the Government announced major mergers of public sector banks,
which included United Bank of India and Oriental Bank of Commerce to be merged
with Punjab National Bank, Allahabad Bank to be amalgamated with Indian Bank and
Andhra Bank and Corporation Bank to be consolidated with Union Bank of India.
 The NPAs (Non-Performing Assets) of commercial banks recorded a recovery of Rs.
400,000 crore (US$ 57.23 billion) in the last four years including record recovery of
Rs. 156,746 crore (US$ 22.42 billion) in FY19.
 Allahabad Bank’s board approved the merger with Indian bank for the consolidation
of 10 state-run banks into the large-scale lenders.

 The total equity funding of microfinance sector grew at 42 y-o-y to Rs. 14,206 crore
(US$ 2.03 billion) in 2021-19.

Government Initiatives

 As per Union Budget 2022-20, the Government proposed fully automated GST refund
module and an electronic invoice system that will eliminate the need for a separate e-
way bill.
  Under the Budget 2022-20, Government proposed Rs. 70,000 crore (US$ 10.2 billion)
to the public sector banks.
 Government smoothly carried out consolidation, reducing the number of Public
Sector Banks by eight.

 As of September 2021, the Government of India made Pradhan Mantri Jan Dhan
Yojana (PMJDY) scheme an open-ended scheme and added more incentives.
 The Government of India planned to inject Rs. 42,000 crore (US$ 5.99 billion) in
public sector banks by March.
Achievements
Following are the achievements of the Government:

 In November 2023, Unified Payments Interface (UPI) recorded 2.21 billion

transactions worth Rs. 3.90 lakh crore (US$ 53.06 billion).
 According to the RBI, India’s foreign exchange reserve reached US$ 574.82 billion as
of November 27, 2023.

 To improve infrastructure in villages, 204,000 point of sale (PoS) terminals have been
sanctioned from the Financial Inclusion Fund by National Bank for Agriculture &
Rural Development (NABARD).

Road Ahead
Enhanced spending on infrastructure, speedy implementation of projects and continuation of
reforms are expected to provide further impetus to growth in the banking sector. All these
factors suggest that India’s banking sector is poised for a robust growth as rapidly growing
businesses will turn to banks for their credit needs.
Also, the advancement in technology has brought mobile and internet banking services to the
fore. The banking sector is laying greater emphasis on providing improved services to their
clients and upgrading their technology infrastructure to enhance customer’s overall
experience as well as give banks a competitive edge.
India’s digital lending stood at US$ 75 billion in FY18 and is estimated to reach US$ 1
trillion by FY23 driven by the five-fold increase in the digital disbursements.
The Indian banking system consists of 12 public sector banks, 22 private sector banks, 44
foreign banks, 56 regional rural banks, 1,485 urban cooperative banks and 96,000 rural
cooperative banks in addition to cooperative credit institutions. As of August 2023, total
number of ATMs in India increased to 209,110 and is expected to reach 407,000 by 2022.
According to Reserve Bank of India (RBI), India’s foreign exchange reserve reached US$
560.53 billion as on October 23, 2023. According to the Reserve Bank of India (RBI), bank
credit and deposits stood at Rs. 103.43 lakh crore (US$ 1.39 trillion) and Rs. 143.02 lakh
crore (US$ 1.92 trillion), respectively, in the fortnight ending October 9, 2023.
Credit to non-food industries stood at Rs. 102.80 lakh crore (US$ 1.38 trillion) as of October
9, 2023.
Asset of public sector banks stood at Rs. 107.83 lakh crore (US$ 1.52 trillion) in FY20.
Total assets across the banking sector (including public, private sector and foreign banks)
increased to US$ 2.52 trillion in FY20.
Indian banks are increasingly focusing on adopting integrated approach to risk management.
The NPAs (Non-Performing Assets) of commercial banks has recorded a recovery of Rs.
400,000 crore (US$ 57.23 billion) in FY19, which is highest in the last four years.
As per Union Budget 2022-20, investment-driven growth required access to low cost capital,
and this would require investment of Rs. 20 lakh crore (US$ 286.16 billion) every year.
RBI has decided to set up Public Credit Registry (PCR), an extensive database of credit
information, accessible to all stakeholders. The Insolvency and Bankruptcy Code
(Amendment) Ordinance, 2020 Bill has been passed and is expected to strengthen the
banking sector. Total equity funding of microfinance sector grew 42% y-o-y to Rs. 14,206
crore (US$ 2.03 billion) in 2021-19.
Bank accounts opened under the Government’s flagship financial inclusion drive Pradhan
Mantri Jan Dhan Yojana (PMJDY) reached 40.05 crore and deposits in Jan Dhan bank
accounts stood at more than Rs. 1.30 lakh crore (US$ 18.44 billion).
Rising income is expected to enhance the need for banking services in rural areas, and
therefore, drive the growth of the sector.
The digital payments revolution will trigger massive changes in the way credit is disbursed in
India. Debit cards have radically replaced credit cards as the preferred payment mode in India
after demonetisation. Payments on Unified Payments Interface (UPI) hit an all-time high of
1.49 billion in terms of volume with transactions worth nearly Rs. 2.90 lakh crore (US$ 41.22
billion) in July 2023.
COMPANY PROFILE
The Housing Development Finance Corporation Limited or HDFC was among the first
financial institutions in India to receive an “in principle” approval from the Reserve Bank of
India (RBI) to set up a bank in the private sector. This was done as part of RBI’s policy for
liberalisation of the Indian banking industry in 1994.

HDFC Bank was incorporated in August 1994 with its registered office in Mumbai, India.
The bank commenced operations as a Scheduled Commercial Bank in January 1995. As of
June 30, 2020, the Bank had a nationwide distribution network 5,326 branches and 14,996
ATM's in 2,825 cities/towns.

HDFC Bank's MOGO - our Musical Logo - is a vibrant expression of the values that have
driven the Bank to become India's premier digital bank. It helps form a powerful emotional
connect with customers and builds recall among stakeholders across platforms - ATMs,
PhoneBanking, Apps and other touch-points
Our MOGO reflects the two dimensions of what we stand for:

Trust
Created through being caring and reliable over the last two decades

Progressive change
To address the ever changing needs of our customers

This piece is inspired on the one hand, by RaagBilawal which expresses innovation and
dynamism, and on the other by RaagShudhKalyan which reflects the caring, humane nature
of
HDFC Bank. You will find contemporary western instruments such as the Piano and Guitar
accompanying our very own Sitar, thus creating a wholesome blend of global aspiration and
Indian earthiness.

MOGO is a registered trademark of Brand Musiq.

CSR

At HDFC Bank, corporate social responsibility or CSR is all about developing a business
model that not only creates economic value but also contributes to a healthy ecosystem and
strong communities. Our endeavour is to evolve and develop appropriate business processes
and strategies to achieve a common goal that contributes to the greater good.

Our CSR programmes encompass sustainable livelihood, sanitation, education, skilling,

community initiatives and environmental sustainability.

VISION, MISSION AND VALUES

HDFC Bank’s mission is to be a world class Indian bank. We have a two-fold objective: first,
to be the preferred provider of banking services for target retail and wholesale customer
segments. The second objective is to achieve healthy growth in profitability, consistent with
the bank’s risk appetite.

The bank is committed to maintaining the highest level of ethical standards, professional
integrity, corporate governance and regulatory compliance. HDFC Bank’s business
philosophy is based on five core values: Operational Excellence, Customer Focus, Product
Leadership, People and Sustainability.

Promoter

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, strong market reputation, large shareholder base and
unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian
environment.
Business Focus

As on September 30, 2016 the authorised share capital of the Bank is Rs. 650 crores. The
paid-up share capital of the Bank is Rs. 509,12,67,434 (2545633717 equity shares of Rs. 2
each). The HDFC Group holds 21.34 % of the bank’s equity and about 18.58 % of the equity
is held by the ADS / GDR Depositories (in respect of the bank’s American Depository Shares
(ADS) and Global Depository Receipts (GDR) Issues). Also, 32.04 % of the equity is held by
Foreign Institutional Investors (FIIs) and the bank has 4,74,443 shareholders.

HDFC Bank shares are listed on the BSE Limited and The National Stock Exchange of India
Limited (NSE). The bank’s American Depository Shares (ADS) are listed on the New York
Stock Exchange (NYSE) under the symbol ‘HDB’ and Global Depository Receipts (GDRs)
are listed on Luxembourg Stock Exchange under ISIN No US40415F2002.

Capital Structure

HDFC Bank is headquartered in Mumbai, India. As of June 30, 2020, the bank’s distribution
network was at 5,326 branches across 2,825 cities. All branches are linked online in real-
time. Customers across India are also serviced through multiple delivery channels such as
phone banking, NetBanking, mobile banking and SMS-based banking.

Our expansion plans take into account the need to have a presence in all major industrial and
commercial centers where our corporate customers are located. We also seek to build a strong
retail customer base for both deposits and loan products.

Being a clearing and settlement bank to various leading stock exchanges, we have branches
in centres where the NSE and BSE have a strong and active member base. The bank also has
a network of 14,996 ATMs across India. Our ATM network can be accessed by all domestic
and international Visa / MasterCard, Visa Electron / Maestro, Plus / Cirrus and American
Express Credit / Charge cardholders.
CBoP& Times Bank Amalgamation

On May 23, 2008, the amalgamation of Centurion Bank of Punjab (CBoP) with HDFC Bank
was formally approved by Reserve Bank of India to complete the statutory and regulatory
approval process. As per the scheme of amalgamation, shareholders of CBoP received one
share of HDFC Bank for every 29 shares of CBoP.

The amalgamation added significant value to HDFC Bank with an increased branch network,
geographic reach, customer base, and a larger pool of skilled manpower.

In a milestone transaction in the Indian banking industry, Times Bank Limited (a new private
sector bank promoted by Bennett, Coleman & Co. or Times Group) was merged with HDFC
Bank Ltd., effective February 26, 2000. This was the first merger of two private banks in the
new generation private sector banks. As per the scheme of amalgamation approved by the
shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank
received one share of HDFC Bank for every 5.75 shares of Times Bank.

Distribution Network

HDFC Bank is headquartered in Mumbai. As of June 30, 2020, the Bank's distribution
network was at 5,326 branches across 2,825 cities. All branches are linked online on a real-
time basis. Customers across India are also serviced through multiple delivery channels such
as Phone Banking, Net Banking, Mobile Banking, and SMS based banking. The Bank's
expansion plans take into account the need to have a presence in all major industrial and
commercial centers, where its corporate customers are located, as well as the need to build a
strong retail customer base for both deposits and loan products. Being a clearing / settlement
bank to various leading stock exchanges, the Bank has branches in centres where the NSE /
BSE have a strong and active member base. The Bank also has a network of 14,996 ATMs
across India. HDFC Bank's ATM network can be accessed by all domestic and international
Visa / MasterCard, Visa Electron / Maestro, Plus / Cirrus and American Express Credit /
Charge cardholders.
Technology

HDFC Bank operates in a highly automated environment powered by information technology

and communication systems. All branches have online connectivity which enables speedy
funds transfer for customers. Multi-branch access is also provided to retail customers through
the branch network and Automated Teller Machines (ATMs).

We have made substantial efforts and investments in acquiring the best technology available
internationally to build the infrastructure for a world class bank.

For our core banking software needs, the corporate banking business is supported by
Flexcube, and the retail banking business by Finware, both from i-Flex Solutions Ltd. The
systems are open, scaleable and web-enabled.
HDFC Bank has prioritised 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 each
of its businesses, the bank has succeeded in leveraging its market position, expertise and
technology to create a competitive advantage and build market share.
Awards

HDFC Bank began operations in 1995 with a simple mission: to be a "World-class 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.
It is extremely gratifying that our efforts towards providing customer convenience have been
appreciated both nationally and internationally.

ORGANIZATION STRUCTURE:

HDFC Bank's Board of Directors is comprised of distinguished individuals with a wealth of

experience in public policy, administration, industry and commercial banking. Senior
executives representing HDFC Ltd. are also on the Board.

Various businesses and functions in the bank are headed by senior executives with work
experience in India and abroad. They report to the Managing Director. The Bank is focussed
on recruiting and retaining the best talent in the industry as it believes that its people are a
competitive strength.
Senior Management Team

HDFC Bank’s leadership team brings together a diversity of talent and a wealth of
experience. Guided by an experienced board and visionary managing director, the team steers
the bank to new heights. As the world becomes increasingly digital, the management team is
leading the bank to leadership in this emerging domain with innovative products and services.
PRODUCTS AND SERVICES OF THE COMPANY:
CHAPTER – V
DATA ANALYSIS INTERPRETATION
DEMOGRAPHIC FINDINGS
AGE GROUP

Age group(years) % of respondents

Below 20 0%
20-35 15%
36-50 39%
51-65 30%
Above 65 30%

No. of respondents
90

80 78

70
59
60

50 No. of respondents

40
31 32
30

20

10
0
0
Below 20 20-35 36-50 51-65 above 65

Interpretation: Out of total 200 respondents, below 20 years of age were none, 39% of
the respondents falls in the age group of 36-50 years where as 29% were in the age group of
51-65 years and next 16% falls in the group of more than 65 years.

JOB PROFILE
 Category % of respondents
Service 47%
Business 40%
Others 13%

Job profile of respondents

26; 13%

Service
Business
94; 47% Others

80; 40%

Interpretation: Out of total respondents, most of respondents were from service class and
40 % were during business and rest of the respondents include retired person, other people,
other professional’s students etc.
ANNUAL INCOME (IN LACS)

Income group % of respondents

Less than 1 lac 25%
1-5 lacs 46%
More than 5 lacs 2
9%

Annual income of Respondents

57; 28% 50; 25%

Less than 1 lac

1-5 lacs
More than 5 lacs

93; 47%

Interpretation: Most of the respondents belong to the income group of 1-5 lacs followed
by the respondents belong to income group of more than 5 lacs which is 29% of total
respondents and rest of Respondents belonging to the income group below 1 lac.
EDUCATIONAL BACKGROUND:-

Qualification % of respondents
Under graduate (U.G) 26%
Graduate 39%
Post graduate(PG) 28%
Others(O) 13%

Educational background of respondents

13; 7%

53; 27% Under graduate

Graduate
55; 28% Post graduate
Other

79; 40%

Interpretation: Most of the respondents were graduate and 26% were post graduate and
rest 6% belong to other category.
When the respondent were asked their preference of investment, the
following respondents were obtained .

15; 8%
No. of respondents

25; 13%
80; 40%

35; 18%
Mutual Fund
Equity
45; 23%
IPO
Derivatives
currency

Interpretation: Out of 200 respondents amount 40% respondents investtheir fund

inMutual fund, 22% respondents invest their fund in Equity, 17% respondents invest their
fund in IPO,13% respondents invest their fund in derivatives, 15% respondents invest their
fund in currency.
When the respondents were asked about the time period for which they are
investing, the following responses were obtained.

Investment time period of respondents

25; 13%

78; 39% Less than 1 year

1-5 year
more than 5 year

97; 49%

Interpretation: Out of total 200 respondents 12% respondents were new investors, 48%
were investing for 1-5 year and rest were for more than 5 year.
When the respondents were asked about proportion of income they invest
in shares and securities, the following responses were obtained.

No. of respondents

31; 16% 47; 24%

Up to 5%
5to 10 %
10 to 25%
more than 25%

63; 32%

59; 30%

Interpretation: When the respondents asked about the proportions of income they invest
in shares and securities, it was found that most of the 32% respondents invest 10-25% of
their income, 29% of respondents invest 5-10% of their income, 23% of them invest up to 5%
and rest invest more than 25% of their income.
When the respondents were asked trading frequency, the following
responses were obtained.

Trading frequency of respondents

140 131

120

100

80 No. of respondents

60 49

40

20 13
7

0
Daily Monthly Weekly According to the
market

Interpretation: On analyzing the trading practices it was found that majority, 65% of the
investors trade according to the market 25% trade daily followed by weekly traders 7%.
When the respondents were asked about trading advice , the following
responses were obtained.

120

100 98

80

60

40 37 35 No. of respondents

19
20
11

0
ea on e ice r
id vic dv he
n opti ad a O t
ow rt'
s nd er
ur
pe rf ie r ok
yo Ex B
On On

Interpretation: Regarding the decision of amount and investment area, 98 out of 200
takes the idea on their own and 37 on expert’s opinion, 35 on brokers advice, and 19 on
friends advice.
When the respondents asked whether any professional advice is available
to them when required, the following responses were obtained.

No. of Responding

19; 10%

73; 37% Yes

No
Sometime

108; 54%

Interpretation: Out of 200, 108 respondents said that they don’t and professional advice ,
73 said that they get it sometimes, and 19 of them get advice when needed.
When the respondents were asked about the motive for making investment
in capital market, the following responses were obtained.

Motive for making investment

120
98
100
82
80
Respondents
60

40
20
20

0
Regular income in form of Tax planning Capital gain
dividend/ interest

Interpretation: On analyzing motives for investment in capital market it was found that
capital gain was the most important factor that influences investment decisions followed by
regular income and tax planning.
When the respondents were asked whether they are satisfied with the
different charges by their brokerage, the following responses were
obtained.

No. of Respondents
140 124
120

100

80

60 51

40 25
20

0
Satisfied Somehow satisfied dissatisfied

No. of Respondents

Interpretation: Out of the 200 respondents 124 dissatisfied with the different charges, 51
respondents show nuteral response and rest of the satisfied.
When the respondents were asked whether they are satisfied with their
Investment or not.

90; 45% Yes

110; 55% No

Interpretation: Out of the 200 respondents 55% were not satisfied with their investment
and rest of the satisfied.
When the respondents were asked whether investors want to keep their
shares in demat form or physical form.

Physical form Vs Demat

Physical
Demat

100; 100%

Interpretation: Above Graph shows that every investors want to keep their shares in Demat
form, no one is ready to prefer physical form
When the respondents were asked if you did not invest in stock market
then what will be the other option?

Alternatives of Investment

20; 10%

Insurance
34; 17% Fixed Deposit
80; 40% Property
Gold

66; 33%

Interpretation: Above Graph shows that 40% investors said that if theydid not invested in stock
market then they prefer to insurance, 33% call for fixed deposit, 17% prefer to property and 10% said
that they prefer to invest in gold.
FINDINGS
Job Profile and Investment Proportion
Out of 94 investors in the services sector, 32% invest 10–25% of their total income, 29%
invest 5–10%, 23% up to 5%, and just 16% invest more than 25%. Out of 80 investors in the
business class, 26% spend more than 25% of their income in stocks and other assets, 30.15%
invest between 10% and 25%, and the other participants invest between $5 and $10. 73% of
the 26 respondents with jobs in other professions invest up to 5% of their entire income,
while the remaining respondents contribute 5–10%.
Annual Income & Investment Proportion
Age groups 51 to 65 and those beyond 65 are mostly driven to trade in each industry by
steady income in the form of dividends or interest. The second Tax Planning survey and the
capital gain surveys included around 81% of the total respondents. 64% of respondents in the
36 to 50 age group prefer regular income, followed by capital gains and tax planning.

Age Group and Motive of Trading

Age groups 51 to 65 and those above 65 have consistent income in the form of dividends or
interest as their primary motivations for trading in each sector. In these capital gain and
second Tax Planning surveys, around 81% of all respondents participated. Regular income is
prioritised by 64% of respondents in the 36 to 50 age range, followed by capital gains and tax
preparation.
SUGGESTIONS
• Expert counsel need to be accessible in the city.
• Brokers must promptly transmit goods and payments to investors.
• Brokers ought to treat all investors fairly.
• It's important to provide timely phone service.
 CONCLUSION
• Compared to purchasers of solution courses, investors in business classes put a
higher percentage of their money in stocks and assets.

• The majority of investors trade everyday in accordance with professional traders.

• The majority of people depend on their own judgement in addition to professional

advice and broker recommendations when deciding where and how much money to invest.

• During the money phase, investment growth is the driving force behind people's
routines, which are closely followed by normal cash and tax income and tax thinking.

Why The level of service satisfaction for mobile solution agents and expert counsel is
much lower.

• Providing professional advice seriously isn't enough investment in second-market

markets.

• The majority of consumers believe that online trading is more transparent than
traditional investment (Ring trading).

• A lot of people are aware of the many costs charged by the agents (Demat
expenditures, transaction fees, solution expenses, solutions charges, etc.).

• Private relations believe brokerage and frequent charges to be the primary factors
when choosing an agent.

• The majority of investors aren't satisfied with the "phone solutions" provided by the
agents,

• The investors' main concern is that brokers' attitudes towards small investors differ
from those of the majority of the big buyers.
• Choosing where and how much to invest is another significant problem for purchasers.
 Bibliography
BOOKS

1. The Mindful Investor, by Maria Gonzalez and Graham Bayron.

2. Understanding Indian Investors, by JawaharLal.
3. Security Analysis and Portfolio Management by PunithavathiPandian.
4. Investment Analysis and Portfolio Management, by Prasanna Chandra.

RESEARCH PAPERS

An Empirical study on Indian individual investor’s behaviour, by Syed Tabassum Sultana.

WEB SITES

WWW.NSEINDIA.COM
WWW.BSEINDIA.COM
WWW.SEBIINDIA.COM
MONEYCONTROL.COM
NFCM, DEALERS MODULE HAND BOOK
RESEARCH METHODOLOGY
KOTHARI C.R. –EDITION 2000
ANNEXURE
 QUESTIONNAIRE

Name:……………………………………………………………………
Address:…………………………………………………………………
Phone No:………………………………………………………………
Age: ( ) 20 to 35 ( ) 36 to 50 ( ) 51 to 65 ( ) 36 to 50 ( ) more than65
Job profile: ( ) Govt. Servant () Business ( ) Others
Annual Income (in lacs): ( ) less than 1 ()1-5 lacs ( ) More than 5 lacs
Qualification:
Under Graduate Graduate Post Graduate Others

(1) Where do you invest your funds?

(a) Mutual Fund
(b) Equity
(c) IPO
(d) Derivatives
(e) Currency

(2) For long you have been dealing instock market?

(a) Less than 1 year (b) 1-5 year
(c) More than 5 year

(3)How much share or your income do you invest?

(a) Up to 5% (b) 5-10%

(c) 10-25% (d) More than 25%

(4) How often do you trade ?

(a) Daily (b) Weekly
(c)Monthly (d) According to Market
(5) Whom do you Consult before taking decision about the investment ?
(a) On your own idea
(b) Expert’s Opinion
(c) On Friend’s/Family members advice
(d) Broker’s advice
(e) Other source

(6) Whether the professional advice is available to you ?

(a) Yes (b) No (c) Sometimes

(7) What do you consider the most important while investing in stock market?
(a)Regular Income in form of dividend/ Interest
(b)Tax Planning
(c)Capital Gain

(8) What is your satisfaction level pertaining to different charges charged by your broker ?
(a) satisfied
(b) Neutral
(c) Dissatisfied

(9)Are you satisfied with your investment?

(a)yes (b) No

(10)According to you what is the better form to keep the security?

(a)Physical form
(b) Demat form

(11)If you did not invest in stock market then what will be the other option?
(a)Insurance
(b)Saving
(c)Property
(d)Others
Suggestion, if any:
…………………………………………………………………………………………………
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…………………………………………………………………………………………………
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