ACKNOWLEDGEMENT

No task is single mans effort. Any job in this world however trivial or tough cannot be accomplished without the assistance of others. An assignment puts the knowledge and experience of an individual to litmus test. There is always a sense of gratitude that one likes it express towards the persons who helped to change an effort in a success. The opportunity to express my indebtedness to people who have helped me to accomplish this task. I deem it a proud privilege to extend my greatest sense of gratitude to my guide ASSISTANT MANAGER, HDFC BANK for the keen interest, inspiring guidance, continuous encouragement, valuable suggestions and constructive criticism throughout the pursuance of this report. I would like to pay my heartiest thanks to entire family of HDFC BANK especially Mr. Himanshu Tandon, Branch manager, who provided me such a wonderful opportunity to do Summer Training and provided their valuable suggestions in understanding the work of Research Project. I am thankful to, my HOD for granting me the permission to undertake the study. I would like to convey thanks to my faculty members of department of management and technology for ready assistance, keen interest and valuable suggestions. Last but not least it would be unfair if I dont extend my indebtedness to my parents and all my friends for their active cooperation which was of great help during the course of my training project.

YATINDRA BISSA (Student of MBA III Sem.) Department of management and technology Engineering College Bikaner, Bikaner

PREFACE
Using a new pattern based on proper integration of formal teaching and actual practice the M.B.A. program of Rajasthan technical University, Kota has it course for six weeks (45 days) industrial training, after the second semester, so as the students could begin to have the feeling of business environment right in the beginning. Practical training constitutes an integral part of management studies. Training gives an opportunity to the students to expose themselves to the industrial environment, which is quite different from the classroom teaching. The practical knowledge is an important suffix to the theoretical knowledge. One cannot rely merely upon theoretical knowledge. Is has to be coupled with practical for it to be fruitful. The training also enables the management students to themselves see the working conditions under which they have to work in the future. After Liberalization of Indian economy sense is changed because of Multi National Companies continuously coming with their technical expertise and improved management concepts. Industrial activity in India has become a thing to watch and I really wanted to be a part of it and it is essential for me being a finance student. I consider myself lucky to get my summer training in HDFC BANK Jalawar. I underwent six weeks of training. It really helped me to get a practical insight into the actual business environment and provide me an opportunity to make my Financial Management concepts more clear. The advantage of this sort of integration which promotes guided adjustment to corporate culture, functional, social and other norms with formal teaching are: To bridge the gap between theory and practice To install feeling of belongingness and acceptance To cultivate proper temperament & to generate much morale To help students identify their strong & weak points in the following & appreciating organization activities To acquaint students with job performance standards I believe that this knowledgeable endeavor of mine has prepared me slowly but surely for taking up new challenging opportunities in future.

CHAPTER: - 1. INTRODUCTION OF BANKING MEANING AND DEFINITION:

Bank is an institution that deals in money and its substitutes and provides crucial financial services. The principal type of baking in the modern industrial world is commercial banking & central banking. Banking Means "Accepting Deposits for the purpose of lending or Investment of deposits of money from the public, repayable on demand or otherwise and withdraw by cheque, draft or otherwise." -Banking Companies (Regulation) Act, 1949 The concise oxford dictionary has defined a bank as "Establishment for custody of money which it pays out on customers order." Infect this is the function which the bank performed when banking originated. "Banking in the most general sense, is meant the business of receiving, conserving & utilizing the funds of community or of any special section of it." -By H.Wills & J. Bogan "A banker of bank is a person, a firm, or a company having a place of business where credits are opened by deposits or collection of money or currency or where money is advanced and waned. -By Findlay Sheras Thus A Bank Accept deposits of money from public, Pays interest on money deposited with it. Lends or invests money Repays the amount on demand, Allow the money deposited to be with drawn by cheque or draft. ORIGIN OF BANKING Its origin in the simplest form can be traced to the origin of authentic history. After recognizing the benefit of money as a medium of exchange, the importance of banking was developed as it provides the safer place to store the money. This safe place ultimately evolved in to financial institutions that accepts deposits and make loans i.e., modern commercial banks.

A HISTORICAL PERSPECTIVE We can identify there distinct phases in the history of Indian banking: 1.Early phase from 1786-1969. 2.Nationalization of banks and up to 1991 prior to banking sector reforms. 3.New phase of Indian banking with the advent of financial banking. Banking in India has its origin as early or Vedic period. It is believed that the transitions from many lending to banking must have occurred even before Manu, the great Hindu furriest, who has devoted a section of his work to deposit and advances and laid down rules relating to the rate of interest. During the mogul period, the indigenious banker played a very important role in lending money and financing foreign trade and commerce. During the days of the East India Company it was the turn of agency house to carry on the banking business. The General Bank of India was the first joint stock bank to be established in the year 1786. The other which followed was the Bank of Hindustan and Bengal Bank. The Bank of Hindustan is reported to have continued till 1906. While other two failed in the meantime. In the first half of the 19th century the East India Company established there banks, The bank of Bengal in 1809, the Bank of Bombay in 1840 and the Bank of Bombay in1843. These three banks also known as the Presidency banks were the independent units and functioned well. These three banks were amalgamated in 1920 and new bank, the Imperial Bank of India was established on 27th January, 1921. With the passing of the State Bank of India Act in 1955 the undertaking of the Imperial Bank of India was taken over by the newly constituted SBI. The Reserve Bank of India (RBI) which is the Central bank was established in April, 1935 by passing Reserve bank of India act 1935. The Central office of RBI is in Mumbai and it controls all the other banks in the country. In the wake of Swadeshi Movement, number of banks with the Indian management were established in the country namely, Punjab National Bank Ltd., Bank of India Ltd., Bank of , Canara Bank. Ltd. on 19th July 1969, 14 major banks of the country were nationalized and on 15th April 1980, 6 more commercial private sector banks were taken over by the government.

To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and Phase III.

Phase I
The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks, mostly Europeans shareholders. In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. Reserve Bank of India came in 1935. During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the functioning and activities of commercial banks, the Government of India came up with The Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested with extensive powers for the supervision of banking in India as the Central Banking Authority. During those days public has lesser confidence in the banks. As an aftermath deposit mobilization was slow. Abreast of it the savings bank facility provided by the Postal department was comparatively safer. Moreover, funds were largely given to traders.

Phase II
Government took major steps in this Indian Banking Sector Reform after independence. In1955, it nationalized Imperial Bank of India with extensive banking facilities on a large scale especially in rural and semi-urban areas. It formed State Bank of India to act as the principal agent of RBI and to handle banking transactions of the Union and State Governments all over the country. Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19th July,1969, major process of nationalization was carried out. It was the effort of the then Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country was nationalized. Second phase of nationalization Indian Banking Sector Reform was carried out in 1980 with seven more banks. This step brought 80% of the banking segment in India under Government ownership. The following are the steps taken by the Government of India to Regulate BankingInstitutions in the Country: 1949: Enactment of Banking Regulation Act. 1955: Nationalization of State Bank of India. 1959: Nationalization of SBI subsidiaries. 1961: Insurance cover extended to deposits. 1969: Nationalization of 14 major banks.

 1971: Creation of credit guarantee corporation. 1975: Creation of regional rural banks. 1980: Nationalization of seven banks with deposits over 200 crore. After the nationalization of banks, the branches of the public sector bank India rose to approximately 800% in deposits and advances took a huge jump by 11,000%. Banking in the sunshine of Government ownership gave the public implicit faith and immense confidence about the sustainability of these institutions. Phase III This phase has introduced many more products and facilities in the banking sector in its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his name which worked for the liberalization of banking practices. The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and net banking is introduced. The entire system became more convenient and swift. Time is given more importance than money. The financial system of India has shown a great deal of resilience. It is sheltered from any crisis triggered by any external macroeconomics shock as other East Asian Countries suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high, the capital account is not yet fully convertible, and banks and their customers have limited foreign exchange exposure.

FUNCTIONS OF BANKS
PRIMARY FUNCTIONS Acceptance of Deposits Making loans & advances Loans Overdraft Cash Credit Discounting of bills of exchange

SECONDARY FUNCTIONS Agency functions Collection of cheques & Bills etc. Collection of interest and dividends. Making payment on behalf of customers Purchase & sale of securities Facility of transfer of funds

To act as trustee & executor.

UTILITY FUNCTIONS Safe custody of customers valuable articles & securities. Underwriting facility Issuing of traveller's cheque letter of credit Facility of foreign exchanges Providing trade information Provide information regarding credit worthiness of their customer.

BANKING STRUCTURE IN INDIA

SCHEDULED BANKS IN INDIA
(1) Scheduled Commercial Banks

Public Sector Banks

(26)

Private Sector Banks

(25)

Foreign Banks In India

(29)

Regional Rural Banks

(95)

Nationalized Bank Other Public Sector Banks (IDBI) SBI And Its Associates

Old Banks New Banks

Private Private

(2) Scheduled Cooperative Banks

Scheduled Urban Cooperative Banks

Scheduled State Cooperative Banks

Nationalised banks
Allahabad Bank Andhra Bank Bank Of Baroda Bank Of India Bank Of Maharastra 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

Other Public Sector Banks

IDBI (Industrial Development Bank Of India)Ltd.

SBI & its Associates

State Bank of India State Bank of Hyderabad State Bank of Mysore State Bank of Patiala State Bank of Travancore State Bank of Bikaner And Jaipur

(State Bank of Saurastra merged with SBI in the year 2008 and State Bank of Indore In 2010)

Old Private Sector Banks

Bank of Rajasthan Ltd. Catholic Syrian Bank Ltd. City Union Bank Ltd. Dhanalakshmi Bank Ltd. Federal Bank Ltd. ING Vysya Bank Ltd. Jammu and Kashmir Bank Ltd. Karnataka Bank Ltd. Karur Vysya Bank Ltd. Lakshmi Vilas Bank Ltd. Nainital Bank Ltd. Ratnakar Bank Ltd. SBI Commercial and International Bank Ltd. South Indian Bank Ltd. Tamilnad Mercantile Bank Ltd. United Western Bank Ltd.

New Private Sector Banks

Bank of Punjab Ltd. (since merged with Centurian Bank) Centurian Bank of Punjab (since merged with HDFC Bank) Development Credit Bank Ltd. HDFC Bank Ltd. ICICI Bank Ltd. IndusInd Bank Ltd. Kotak Mahindra Bank Ltd. Axis Bank (earlier UTI Bank) Yes Bank Ltd.

10

Foreign Banks in India

ABN AMRO Bank N.V. Abu Dhabi Commercial Bank Ltd American Express Bank Antwerp Diamond Bank Arab Bangladesh Bank Bank International Indonesia Bank of America Bank of Bahrain & Kuwait Bank of Ceylon Bank of Nova Scotia Bank of Tokyo Mitsubishi UFJ Barclays Bank BNP Paribas Calyon Bank ChinaTrust Commercial Bank Citibank DBS Bank Deutsche Bank

HSBC (Hongkong & Shanghai Banking Corporation) JPMorgan Chase Bank Krung Thai Bank Mashreq Bank Mizuho Corporate Bank Oman International Bank Shinhan Bank Socit Gnrale Sonali Bank Standard Chartered Bank State Bank of Mauritius

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CLASSIFICATION ON BASIS OF OWNERSHIP

1. PUBLIC SECTOR BANK Public sector banks are those banks which are owned by the Government. The Govt. runs these Banks. In India 14 banks were nationalized in 1969 & in 1980 another 6 banks were also nationalized. Therefore in 1980 the number of nationalized bank 20. But at present there are 9 banks are nationalized. All these banks are belonging to public sector category. Welfare is their principle objective. 2. PRIVATE SECTOR BANKS These banks are owned and run by the private sector. Various banks in the country such as ICICI Bank, HDFC Bank etc. An individual has control over there banks in preparation to the share of the banks held by him. 3. CO-OPERATIVE BANKS Co-operative banks are those financial institutions. They provide short term & medium term loans to there members. Co-operative banks are in every state in India. Its branches at district level are known as the central co-operative bank. The central co-operative bank in turn has its branches both in the urban & rural areas. Every state co-operative bank is an apex bank which provides credit facilities to the central co-operative bank. It mobilized financial resources from richer section of urban population by accepting deposit and creating the credit like commercial bank and borrowing from the money mkt. It also gets funds from RBI. ACCORDING TO RESERVE BANK OF INDIA ACT 1935 Banks are classified into following two categories son the basis of reserve bank Act. 1934. 1. SCHEDULED BANK These banks have paid up capital of at least Rs. 5 lacks. These are like a joint stock company. It is a co-operative organization. These banks find their mention in the second schedule of the reserve bank. 2. NON SCHEDULED BANK These banks are not mentioned in the second schedule of reserve bank paid up capital of these banks is less then Rs.5 lacs. The no. such bank is gradually tolling in India.

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CLASSIFICATION ACCORDING TO FUNCTION On the basis of functions banks are classified as under :1. COMMERCIAL BANKS The commercial banks generally extend short-term loans to businessmen & traders. Since their deposits are for a short-period only. They cannot lend money for a long period. These banks reform various types or agency job for their customers. These banks are not in a position to grant long-term loans to industries because their deposits are only for a short period. The majority of joint stock banks in India are commercial banks which finance trade & commerce only. 2. SAVING BANKS The principle function of these banks is to collect small saving across the country and put them into productive use. These banks have shown marked development in Germany & Japan. These banks are established in HAMBURG City of Germany in 1765. In India a department of post offices functions as a saving banks. 3. FOREIGN EXCHANGE BANKS These are special types of banks which specialize in financing foreign trade. Their main function is to make international payments through purchase & sale of exchange bills. As it well known, the exporters of a country prefer to receive the payments for exports in their own currency. Thus these banks convert home currency into foreign currency and vice versa. It is on this account that these banks have to keep with themselves stock of the currency of various countries. Along with that, they have to open branches in foreign countries to carry on their business. 4. INDUSTIRAL BANKS The industrial banks extends long term loans to industries. In fact, they also help industrials firms to sell their debentures and shares. Some times, they even underwrite the debentures & shares of big industrial concerns. 5. INDIGENIOUS BANKS These banks found their origin in India. These banks made a significant contribution to the development of agricultural and industries before independence. Mahajans, rural moneylenders have been the forerunner of these banks in India.

13

6.

CENTRAL BANK The central bank occupies a pivotal position in the monetary and banking structure of the country. The central bank is the undisputed leader of the money market. As such it supervises controls and regulates the activities of commercial banks affiliated with it. The central bank is also the higher monetary institution in the country charged with the duty & responsibility of carrying out the monetary policy formulated by the government. India's central bank known as the reserve bank of India was set up in 1935.

7.

AGRICULTURAL BANK The commercial and the industrial banks are not in a position to meet the credit requirements of agriculture. Hence, there arises the need for setting up special type of banks of finance agriculture. The credit requirement of the farmers are two types. Firstly the farmers require short term loans to buy seeds, fertilizers, ploughs and other inputs. Secondly, the farmers require long-term loans to purchase land, to effect permanent improvements on the land to buy equipment and to provide for irrigation works. There are two types of agriculture banks.

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Cooperative banks in India

The Cooperative bank is an important constituent of the Indian Financial System, judging by the role assigned to co operative, the expectations the co operative is supposed to fulfil, their number, and the number of offices the cooperative bank operate. Though the co operative movement originated in the West, but the importance of such banks have assumed in India is rarely paralleled anywhere else in the world. The cooperative banks in India plays an important role even today in rural financing. The businessess of cooperative bank in the urban areas also has increased phenomenally in recent years due to the sharp increase in the number of primary co-operative banks. Co operative Banks in India are registered under the Co-operative Societies Act. The cooperative bank is also regulated by the RBI. They are governed by the Banking Regulations Act 1949 and Banking Laws (Co-operative Societies) Act, 1965.

Rural banks in India

Rural banking in India started since the establishment of banking sector in India. Rural Banks in those days mainly focused upon the agro sector. Regional rural banks in India penetrated every corner of the country and extended a helping hand in the growth process of the country. SBI has 30 Regional Rural Banks in India known as RRBs. The rural banks of SBI is spread in 13 states extending from Kashmir to Karnataka and Himachal Pradesh to North East. The total number of SBIs Regional Rural Banks in India branches is 2349 (16%). Till date in rural banking in India, there are 14,475 rural banks in the country of which 2126 (91%) are located in remote rural areas. Apart from SBI, there are other few banks which functions for the development of the rural areas in India. Few of them are as follows.

Haryana State Cooperative Apex Bank Limited

The Haryana State Cooperative Apex Bank Ltd. commonly called as HARCOBANK plays a vital role in rural banking in the economy of Haryana State and has been providing aids and financing farmers, rural artisans, agricultural laborers, entrepreneurs, etc. in the state and giving service to its depositors.

NABARD
National Bank for Agriculture and Rural Development (NABARD) is a development bank in the sector of Regional Rural Banks in India. It provides and regulates credit and gives service for the promotion and development of rural sectors mainly agriculture, small scale industries, cottage and village industries, handicrafts. It also finance rural crafts and other allied rural economic activities to promote integrated rural development. It helps in securing rural prosperity and its connected matters.

15

Sindhanur Urban Souharda Co-operative Bank

Sindhanur Urban Souharda Co-operative Bank, popularly known as SUCO BANK is the first of its kind in rural banks of India. The impressive story of its inception is interesting and inspiring for all the youth of this country.

United Bank of India

United Bank of India (UBI) also plays an important role in regional rural banks. It has expanded its branch network in a big way to actively participate in the developmental of the rural and semi-urban areas in conformity with the objectives of nationalisation.

Syndicate Bank
Syndicate Bank was firmly rooted in rural India as rural banking and have a clear vision of future India by understanding the grassroot realities. Its progress has been abreast of the phase of progressive banking in India especially in rural banks.

16

CHAPTER: - 3. PROFILE OF THE ORGANISATION

HOUSING DEVELOPMENT FINANCE CORPORATION (HDFC BANK)

INTRODUCTION The housing development finance corporation limited (HDFC) was amongst the first to receive an"in-principle" approval from the reserve bank of India (RBI) to set up a bank in the private sector, as part of RBI liberalization of Indian banking industry in 1994. The bank was in corporate in Aug. 1994 in the name of HDFC Bank Ltd. With its registered office in Mumbai, India, HDFC Bank commenced operations as scheduled commercial bank in January 1995. PROMOTOR 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 1997, the corporation has maintained a consistent and healthy growth in its operations to remain a market leader in mortgage. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. With its experience in the financial markets, a strong franchise, HDFC was ideally positioned to promote a bank in the Indian environment. BUSINESS FOCUS HDFC bank's mission is to be a world class Indian bank. The bank has aim to build sound customer franchises across district business so as to be the prefer provider of banking services in the segment that the bank operates in and to achieve healthy growth in profitability, consistent with the bank's risk appetite. The bank is committed to maintain the highest level of ethical standards, professional integrity and regulatory compliance. HDFC bank's business philosophy is based on four core values: 1. 2. 3. 4. Operational Excellence Customer Focus Product Leadership People.

17

CAPITAL STRUCTURE The authorized capital of HDFC bank is Rs. 45000 Lakhs. The issued, subscribed and paid-up capital is divided into 836,46 lacks equity shares @ Rs.10/- each. TIMES BANKS AMALGAMATION In a mile stone transaction in Indian banking industry, Times bank limited (another new private sector bank promoted by Bennett, Coleman & Co. times group) was merged with HDFC bank ltd., effective February 26, 2000. As per the scheme of amalgamation approved by the share holders of both banks and Reserve bank of India. DISTRIBUTION NETWORK HDFC bank has its Headquarters in Mumbai. The bank at present has an enviable network of 535branches spread over 312 cities across the country. All branches are linked on an online real time basis. Customer in 189 locations is also serviced through phone banking. The banks 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 loans products. Being a clearing settlement bank to various leading stock exchanges, the bank has branches in centers where the NSE/BSE have a strong and active member base. The bank also have a network of 1323ATM's across there cities. TECHNOLOGY HDFC bank operates in a highly automated environment in terms of information technology and communication systems. All the bank's branches have connectivity which enables the bank to offer speedy funds transfer facility to its customers. Multi branch access is also provided to retail customers through the branch network and automated teller machines (ATMs) The bank has made substantial efforts and investments in acquiring the best technology available internationally to build the infrastructure for a world class bank has prioritized its engagement in technology and the internet as one of its key goals and has already made significant progress in web enabling its core business. In each office its business, the Bank has succeeded in leveraging its market position, expertise and technology to create a competitive advantage and build market share. 18

BUSINESS PROFILE HDFC Bank caters to wide range of banking services covering both commercial and investment banking on the wholesale side and transactional branch banking on the retail side. The bank three key business areas 1. WHOLESALE BANKING SERVICES The Bank's target is primary large blue-chip manufacturing companies in the Indian corporate sector and to a lesser extent, emerging mid sized corporate. For these corporate the Bank provides a wide range of commercial and transactional Banking services including working capital finance trade services, transactional services, cash management etc. The Bank is also a leading provider of structure solution which combine cash management services with vendors and distributor finance for facilitating superior supply chain management for its corporate customers. Based on its superior product delivery service levels and strong customer orientation, the Bank has made significant in roads into the Banking consortia of a number of leading India corporate including Multinationals, Companies from the domestic business house and prime public sector companies. It is recognized as a leading provider of cash management and transactional Banking solutions to corporate customers, Mutual Funds, Stock Exchange Members and Bank. 2. RETAIL BANKING SERVICES: The objective of retail bank is to provide its target market customer a full range of financial products and banking service, giving the customer a one-stop window for all his/her banking requirements. The products are backed by world-class services and delivered to the customers through the growing branch network as well as though alternative delivery channels like ATMs, phone banking, net banking and mobile banking. The HDFC bank preferred programs for high net worth individuals, the HDFC bank plus and the investment advisory services program have been designed keeping in mind heads of customers who seek distinct financial solutions information and advice on various investment avenues. The also had a wide array of retail ban products including auto loans, loans against marketable securities, personal loans and loans for two wheelers. It is also a leading provider of depository service to retail customers offering customers the facility to hold their investments in electronic form. HDFC Bank was the first bank in India to launch an international debit card in association with VISA ( Visa election) and issue the master card Maestro debit card as well. The debit card allows the 19

use to directly debit his account at the point of purchase at a merchant establishment, in India and overseas. The bank launch its credit card in association with VISA in November 2002. The bank is also one of the leading players in the "merchant acquiring" business with 26,400 point of sale (pos) terminals for debit/credit cards acceptance at merchant establishments. The bank is well positioned as a leader in various net based B2C opportunities including a wide range of interest banking services for fixed deposit, loans, bill payments etc. 3. TREASURY OPERATIONS Within this business the bank has three main product areas foreign exchange and derivative, local currency, money market & debt securities and equities. With the liberalization of the financial market in India, corporate need more sophisticated risk management information advice and product structure. These and find pricing on various treasury product are provided through the bank treasury team.

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BOARD OF DIRECTOR Mr. Jagdish kapoor, (Chairman) Mr. Aditya Puri, (Managing Director) Mr. Keki Mistry Dr. Venkat Rao Gadwal Dr. Vineet Jain Mrs. Renu Karnad Mr. Arvind Pande Mr. Ranjan Kapoor (Resigned w.e.f. 29th March, 2006) Mr. Bobby Parikh (w.e.f. Jan. 9, 2004) Mr. Ashim Samanta VICE PRESIDENT AND COMPANY SECRETARY Mr. Sanjany Dongre AUDITOR M/s P.C Hansotia & Co. Chartered Accountant REGISTERED OFFICE HDFC BANK HOUSE Senapati Bapat Mart, Lower Parel, Mumbai Tel. No. Fax No. 40013 66521000 24960737

Website : www. hdfcbank.com

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2007 Milestones in the History

Hdfc bank began its operations in 1995 with a simple mission to be a "world-class indian bank". They realized that only a single-minded focus on product quality and service excellence would help us get there. Today, they are proud to say that they are well on our way towards that goal. It is extremely gratifying that their efforts towards providing customer convenience have been appreciated both nationally and internationally.

2009

Asia money 2009 awards Iba banking technology awards 2009 Global finance award award 2008

'Best domestic bank in india' 'Best it governance award - runner up' 'Best trade finance bank in india for 2009

Idrbt banking technology excellence 'best it governance and value delivery' Asian banker excellence in retail 'asian banker best retail bank in india award 2009 ' financial services

2008

Finance Cnn-ibn

asia

country

awards

for 'Best bank and best cash management bank' 'indian of the year (business)' 'best it adoption in the banking sector' 'best bank 2008' fab 50 companies in asia pacific

achievement 2008

Nasscom it user award 2008 Business india Forbes asia services Asiamoney Microsoft & indian express group World trade center award of honour

Asian banker excellence in retail financial best retail bank 2008 Best local cash management bank award voted by corporates security strategist award 2008 For outstanding contribution to international trade services.

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Business today-monitor group survey Financial express-ernst & young award hrm congress: Business today

One of india's "most innovative companies" best bank award in the private sector category up, & many more 'best bank' award

Global hr excellence awards - asia pacific 'employer brand of the year 2007 -2008' award - first runner

Dun & bradstreet american express 'corporate best bank' award corporate best bank award 2007 The bombay stock exchange and nasscom 'best corporate social responsibility practice' award foundation's business for social Best bank award in the private sector category. responsibility awards 2007 Outlook money & ndtv profit financial services awards Asian banker our managing director aditya puri wins the leadership achievement award for india

The asian banker excellence in retail best retail bank in india

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MERGER

Hdfc bank and centurion bank of punjab merger at share swap ratio of 1:29 the boards of hdfc bank and centurion bank of punjab met on 25 february, 2008 and approved, subject to due diligence, the share swap ratio for the proposed merger of centurion bank of punjab with hdfc bank. The scheme of amalgamation envisages a share exchange ratio of one share of hdfc bank for twenty nine shares of centurion bank of punjab. The combined entity would have a nationwide network of 1,148 branches (the largest amongst private sector banks) a strong deposit base of around rs. 1,200 billion and net advances of around rs. 850billion. The balance sheet size of the combined entity would be over rs. 1,500 billion. Commenting on the proposed merger, mr. Deepak parekh, chairman, hdfc said, we were amongst the first to get a banking license, the first to do a merger in the private sector with times bank in 1999, and now if this deal happens, it would be the largest merger in the private sector banking space in india. Hdfc bank was looking for an appropriate merger opportunity that would add scale, geography and experienced staff to its franchise. This opportunity arose and we thought it is an attractive route to supplement hdfc banks organic growth. We believe that centurion bank of punjab would be the right fit in terms of culture, strategic intent and approach to business. Mr. Aditya puri, managing director, hdfc bank said, these are exciting times for the indian banking industry. The proposed merger will position the combined entity to significantly exploit opportunities in a market globally recognized as one of the fastest growing. Im particularly bullish about the potential of business synergies and cultural fit between the two organizations. The combined entity will be an even greater force in the market. Mr. Rana talwar, chairman, centurion bank of punjab stated, over the last few years, centurion bank of punjab has set benchmarks for growth. The bank today has a large nationwide network, an extremely valuable franchise, 7,500 Talented employees, and strong leadership positions in the market place. I believe that the merger with hdfc bank will create a world class bank in quality and scale and will set the stage to compete with banks both locally as well on a global level. Mr. Shailendra bhandari, managing director and ceo, centurion bank of punjab said, we are extremely pleased to receive the go ahead from our board to pursue this opportunity. A merger between the banks provides significant synergies to the combined entity. The proposed merger would further improve the franchise and customer proposition offered by the individual banks.

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Product and scope

Hdfc bank offers a bunch of products and services to meet the every need of the people. The company cares for both, individuals as well as corporate and small and medium enterprises. For individuals, the company has a range accounts, investment, and pension scheme, different types of loans and cards that assist the customers. The customers can choose the suitable one from a range of products which will suit their life-stage and needs. For organizations the company has a host of customized solutions that range from funded services, non-funded services, value addition services, mutual fund etc. These affordable plans apart from providing long term value to the employees help in enhancing goodwill of the company. The products of the company are categorized into various sections which are as follows: Accounts and deposits. Loans. Investments and insurance. Forex and payment services. Cards. Customer center.

25

Products and services at a glance

1. Personal banking services
A. Accounts & deposits Savings account Regular savings account Savings plus account Savings max account Senior citizens account No frills account Institutional savings account Payroll salary account Classic salary account Regular salary account Premium salary account Defence salary account Kid's advantage account Pension saving bank account Family savings account Kisan no frills savings account Kisan club savings account Plus current account Trade current account Premium current account Regular current account Apex current account Max current account Reimbursement current account regular fixed deposit Super saver account

Current account

Fixed deposit

26

Sweep-in account

Recurring deposit Demat account Safe deposit locker B. Loans Personal loans Home loans Two wheeler loans New car loans Used car loans Overdraft against car Express loans Loan against securities Loan against property Commercial vehicle finance Working capital finance Construction equipment finance Mutual funds Insurance Bonds Financial planning Knowledge centre Equities & derivatives Mudra gold bar Trade finance Travelers cheques Foreign currency cash Foreign currency drafts Foreign currency cheque deposits

C. Investments & insurance

D. Forex services

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Foreign currency remittances Forex plus card Prepaid refill Bill pay Direct pay Visa money transfer E-monies electronic funds transfer Excise & service tax payment Insta alerts Mobile banking Atm Phone banking Branch network Silver credit card Gold credit card Woman's gold credit card Platinum plus credit card Titanium credit card Value plus credit card Health plus credit card Hdfc bank idea silver card Hdfc bank idea gold card Funded services Non funded services Value added services Internet banking Clearing sub-membership

E. Payment services

F. Access your bank - one view

G. Cards

2. Wholesale banking services

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Rtgs sub membership Fund transfer Atm tie-ups Corporate salary a/c Tax collection Financial institutions Mutual funds Stock brokers Insurance companies Commodities business Trusts Rupee saving a/c Rupee current a/c Rupee fixed deposits Foreign currency deposits Accounts for returning indians Payment services Net safe Bill pay Insta pay Direct pay Visa money Online donation Remittances

3. NRI banking services

Quality policy
Security: the bank provides long term financial security to their policy. The bank does this by offering life insurance and pension products. Trust: the bank appreciates the trust placed by their policy holders in the bank. Hence, it will aim to manage their investments very carefully and live up to this trust.

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Innovation: recognizing the different needs of our customers, the bank offers a range of innovative products to meet these needs. Integrity customer centric people care one for all and all for one team work joy and simplicity

CHAPTER: - 3. SWOT ANALYSIS

STRENGHTS:
* * * * * * * * * * It has an extensive distribution network comprising of 319 branches in 166 cities & one The Bank has a strong retail depository base & has more than million customers. Bank boasts of a strong brand equity. ISO 9001 certification for its depository & custody operations & for its backend The bank has a near competitive edge in area of operations. The bank has a market leader in cash settlement service for the major stock exchanges HDFC Bank is one of the largest private sector bank working in India. It has a highly automated environment in terms of information technology & Infrastructure is best. It has many innovative products like kids Advantage scheme, NRI services. international office in Dubai this provides a competitive edge over the competitions.

processing of retail operation & direct banking operatiosn.

in its country.

communication system.

WEAKNESS:
* * Account opening and delivery of cheque book take comparatively more time. Lack of availability of different credit products like CC Limit, Bill discounting

facilities.

OPPORTUNITY:
* * * * * Branch expansion Door step services Greater liberalization in foreign ownership via FDI in Indian Pvt. Sector Banks. CC/ OF Facilities. Infrastructure improvements & better systems for trading & settlement in the govt.

securities & foreign exchange markets.

THREATS:
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* *

The bank has started facing competition from players like SBI, PNB Bank in the Some Pvt. Banks have 7 days banking.

finance market itself. This reduce the profit margins in the future.

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CHAPTER: - 4. JUSTIFICATION OF THE STUDY

Financial Statements are prepared primarily for decision-making. They play a dominant role in setting the framework of managerial decisions. But the information in the financial statement is not an end in itself as no meaningful can be drawn from these statements alone. The information provided in the financial statement is of immense use in making decisions through analysis and interpretation of financial statements. The financial analysis is the process of identifying the financial strength and weakness of the firm by properly establishing relationship between the items of the balance sheet and P&L A/C. There are various methods or techniques used in analyzing financial statement such as comparative statement, trend analysis, common size statement, schedule of changes in working capital, fund flow and cash flow analysis, cost volume profit analysis and RATIO ANALYSIS. Ratio analysis is one of the most powerful tool of financial analysis. It is a process of establishing and interpreting various ratios that the financial statements can be analysed more clearly and decisions made from such analysis. Just like a DOCTOR examines his patient by recording his body temperature, blood pressure etc before making his conclusion regarding the illness and before giving his treatment, a financial analyst analysis the financial statement with various tools of analysis before commenting upon the financial health or weaknesses of an enterprise. The purpose of financial analysis is to diagnose the information contained in financial statements so as to judge the profitability and financial soundness of the firm. Financial statement analysis is an attempt to determine the significance and meaning of financial statement data so that forecast may be made of the future earning, ability to pay interest and debt maturities and profitability of a sound dividend policy. A financial ratio is the relationship between two accounting figures expressed mathematically ratio provide clues to the financial position of the concern. These are the pointers and indicators of financial strength, soundness, position or weakness of an enterprise. One can draw conclusions about the exact financial position of a concern with the help of ratios.

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OBJECTIVE OF THE STUDY

Objectives are the ends that states specifically how goal be achieved. Every study must have an objective for which all the efforts have been done. Without objective no research can be conducted and no result can be obtained. On the basis of objective all the research process is followed. Objectives are the main aspect of every study. The objective of the study gives direction to go through the research problem. It guides the researcher and keeps him on track. I have two objectives regarding my research project. These are shown below :1. 2. 1. Primary objective Secondary objective Primary objective :1) 2) To study the software used in HDFC Bank To analyse the financial statements of the corporation to its true

financial position by the use of ratios 2. Secondary objective :1) 2) HDFC 4) decision. To inform the investor, enabling them to take the investment To find out the shortcomings in HDFC Bank To see whether HDFC is going well or not in different areas 3) To inform the management about the financial condition of

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CHAPTER: - 5. RESEARCH METHODOLOGY

The procedure adopted for conducting the research requires a lot of attention as it has direct bearing on accuracy, reliability and adequacy of results obtained. It is due to this reason that research methodology, which we used at the time of conducting the research, needs to be elaborated upon. Research Methodology is a way to systematically study and solve the research problems. If a researcher wants to claim his study as a good study, he must clearly state the methodology adapted in conducting the research the research so that it way be judged by the reader whether the methodology of work done is sound or not.

The Research Methodology here includes.

Meaning Research: Research is defined as a scientific and systematic search for pertinent information on a specific topic. Research is an art of scientific investigation. Research is a systematized effort to gain now knowledge. It is a careful investigation or inquiry especially through search for new facts in any branch of knowledge. Research is an academic activity and this term should be used in a technical sense. Research comprises defining and redefining problems, formulating hypothesis or suggested solutions. Making deductions and reaching conclusions to determine whether they if the formulating hypothesis. Research is thus, an original contribution to the existing stock of knowledge making for its advancement. The search for knowledge through objective and systematic method of finding solutions to a problem is research.

Research Problem
The first step while conducting research is careful definition of Research Problem. To ERR IS THE HUMAN is a proverb which indicates that no one is perfect in this world. Every researcher has to face many problems which conducting any research thats why problem statement is defined to know which type of problems a researcher has to face while conducting any study. It is said that, Problem well defined is problem half solved. Basically, a problem statement refers to some difficulty, which researcher experiences in the context of either a theoretical or practical situation and wants to obtain the solution for the same. The problem statement here is: To make a Financial Analysis of Financial statements of HDFC BANK KURUKSHETRA.

Research Design
A research designs is the arrangement of conditions for collection and analysis data in a manner that aims to combine relevance to the research purpose with economy in procedure. Research Design is 34

the conceptual structure with in which research in conducted. It constitutes the blueprint for the collection measurement and analysis of data. Research Design includes and outline of what the researcher will do form writing the hypothesis and it operational implication to the final analysis of data. A research design is a framework for the study and is used as guide in collection and analyzing the data. It is a strategy specifying which approach will be used for gathering and analyzing the data. It also include the time and cost budget since most studies are done under these two cost budget since most studies are done under theses tow constraints. The design is such studies must be rigid and not flexible and most focus attention on the following. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. What is the study about? Why is the study being made? Where will the study be carried out? What type of data is required? Where can be required data be found? What period of time will the study include? What will be sample design? What techniques of data collection will be used? How will the data be analyzed? In what style will the report be prepared?

TYPES OF RESEARCH DESIGN:

1. Exploratory Research Design: This research design is preferred when researcher has a vague idea about the problem the researcher has to explore the subject. 2. Experimental Research Design The research design is used to provide a strong basis for the existence of casual relationship between two or more variables. 3. Descriptive Research Design It seeks to determine the answers to who, what, where, when and how questions. It is based on some previous understanding of the matter. 4. Diagnostic Research Design It determines the frequency with which something occurs or its association with something else.

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Research Design Used in this Project

Research Design chosen for this study is Descriptive Research Design. Descriptive study is based on some previous understanding of the topic. Research has got a very specific objective and clear cut data requirements. Sampling Design Sampling is necessary because it is almost impossible to examine the entire parent population (i.e. the entire universe) various factors such as time available cost, purpose of study etc. make it necessary for the researchers to choose a sample. It should neither be too small nor too big. It should be manageable. THE sample size of past 3 years is taken for present study due to time limitation.

DATA COLLECTIONS
The process of data collection begins after a research problem has been defined and research design ahs been chalked out. There are two types of data 1. PRIMARY DATA It is first hand data, which is collected by researcher itself. Primary data is collected by various approaches so as to get a precise, accurate, realistic and relevant data. The main tool in gathering primary data was investigation and observation. It was achieved by a direct approach and observation from the officials of the company. 2. SECONDARY DATA It is the data which is already collected by someone else. Researcher has to analyze the data and interprets the results. It has always been important for the completion of any report. It provides reliable, suitable, adequate and specific knowledge. I took data comprise annual reports and post records. Bank has provided me annual reports from 2004-05 to 2007-08 by help of which, I prepared my report.
The valuable cooperation extended by staff members contributed a lot to fulfill the requirements in the collection of data in order to complete the project. Various statistical tools are applied depending on the research problem. In this study ratio analysis, comparative financial statements analysis, common size statements and Trend Analysis has been used for analyzing and interpreting the result.

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QUESTIONNER
Q1.your age? Ans. 1. 18-23 years 2. 24-29 years 3. 30-35 years Base 50 respondents : Interpretation from above response it can be seen that . Ans. Ans. Undergraduate Graduate Postgraduate 10 person 22 person 18 person 37 Married Single 32 person 18 person nil 20% respondents age are 18 to 23 years. 35% respondents age are 24 to 29 years. 30% respondents age are 30 to 35 years. 15% respondents age are 35 to above years. married single 10 person 20 person 10 person

4. 35 years and above 10 person

Q2. Marital status? no. Of children: __________

No. Of children

Interpretation from above response it can be seen that 70% respondents are married. 30% respondents are unmarried. Undergraduate Graduate Postgraduate

Q3. Educational qualification?

Interpretation from above response it can be seen that. 25% respondents are under graduate. 40% respondents are graduate. 35% respondents are post graduate.

Q4. Number of years are you in jalawar? Ans. Ans. Business Profession Service 13 person 17 person 20 person Less than five years More than five years 17 person 33 person Less than five years More than five years

Interpretation from above response it can be seen that. 39% respondents are in gorakhpur for less than five years. 61% respondents are in gorakhpur for more than five years. Business Profession Service

Q5. Your occupation?

Interpretation from above response it can be seen that. 20% respondents occupation is business. 26% respondents occupation is profession. 54% respondents occupation is service.

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Q6. Your annual household income? Ans. Less than 2 lacs Between 2 to 5 lacs Between 5to 8 lacs More than 8 lacs 32 person 13 person 3 person 2 person Less than 2 lacs Between 2 to 5 lacs Between 5to 8 lacs More than 8 lacs

Interpretation from above response it can be seen that. 49% respondents annual household income is less than 2 lacs. 31% respondents annual household income is between 2 to 5 lacs. 15% respondents annual household income is between 5 to 8 lacs. 5% respondents annual household income is more than 8 lacs.

Q7. What is your perception about different products/services provided by hdfc bank? Ans. Lucrative 12 person Lucrative

Not lucrative No idea

Not lucrative 33 person No idea 5 person

Interpretation from above response it can be seen that. 25% respondents perception about different products is lucrative. 60% respondents perception about different products is not lucrative. 15% respondents have no idea.

Q8. Do you want to open an account with hdfc bank? Yes No 39

 Ans. Ans.

Will tell later Yes No Will tell later 8 person 5 person 37 person

Interpretation from above response it can be seen that. 80% respondents are not interested to open an account with the bank. 5% respondents are interested to open an account with the bank. 15% of the respondents say that they will tell later. Yes No Yes No 15 person 35 person

Q9. Do you have all the documents which are required to open an account?

Interpretation from above response it can be seen that. 60% respondents have all the documents which are required to open an account with the bank. 25% respondents do not have all the documents which are required to open an account with the bank Q10. Are you aware that the bank provides you free phone banking & net banking services. If you open a new savings account with hdfc bank? Ans. Yes No 32 person 18 person Yes No

Interpretation from above response it can be seen that 20% respondents are aware of it. 40% respondents are not aware of it.

Q11.are you aware of different terms and conditions which are very much essential to maintain an account at hdfc bank? Yes

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 Ans.

No Yes No

15 person 35 person

Interpretation from above response it can be seen that. 12% respondents are familiar with different terms and conditions which are very much essential to maintain account with the bank. 88% respondents have no idea about it.

Q13. Do you know about hdfc banks recruitment policies related to personal banker? Ans. Yes No 38 person 12 person Yes No

Interpretation from above response it can be seen that. 41% respondents are known about hdfc banks recruitment policies related to personal banker. 59% respondents are not known about hdfc banks recruitment policies related to personal banker.

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Chapter 6- conclusions and suggestions 6.1 conclusions: Hdfc bank, the banking arm of hdfc is expected to go on stream. The bank already has good number of employees on board and is recruiting personal banker heavily to take the headcount to many more. It is on the brim of increasing its customers through its attractive schemes and offer. The project opportunities provided was market segmentation and identifying prospective customers in potential geographical location and convincing them to attract more customers so that new business opportunities of the bank can be explored. Through this project, it could be concluded that people are not much aware about the various products of the bank and many of them not interested to open an account, to invest money at all. Services was considered as unsought good which require hard core selling, but in changing trend in income and people becoming financially literate, the demand for banking sector is increasing day by day. So, at last the conclusion is that there is tough competition ahead for the company from its major competitors in the banking sector. Last but not the least i would like to thank hdfc bank for giving me an opportunity to work in the field of marketing and operation. I hope the company finds my analysis relevant.

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6.2 suggestions: finally some recommendations for the company are as fallows: To make people aware about the benefit of becoming a customer of hdfc bank, following activities of advertisement should be done through 1. Print media. 2. Hoarding & banners.

3. Stalls in trade fares 4. Distribution of leaflets containing details information. Other facilities must be provide to the customer: The bank should provide life time valid atm card to all its customers. Minimum balance for savings account should be reduced from rs 10000 to rs 1000, so that people who are not financially strong enough can maintain their account properly. The company should provide a pass book to all its customers. Make people understand about the various benefits of its products. Company should organize the program in the society, so that people will be aware about the company and different products of the bank. Company should open more branches in different cities.

Chapter 7- limitations Every work has its own limitation. Limitations are extent to which the process should not exceed. Limitations of this project are: The project was constrained by time limit of two months. Mindset of people may very depending upon their age, gender, income etc. Getting appointment from the concern person was very difficult. People mind set about the survey was obstacles in acquiring complete respondents were very busy in their schedule. So it was very time consuming for information & positive interaction, them to answer all the questions properly.

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