A

Project report

On
“banking”

UNDERTAKEN IN

Under the Supervision of: Submitted By:

MD.Sageer
MBA MBA 3RD SEMESTER 2010-11
 DECLARATION

I hereby declare that I have carried out Summer Training Project on the topic entitled “IN
WHICH AREA MORE FOCUS MARKETING OR OPERATION” at MPGI,Nanded.

I further declare that this project work is based on my original work and no part of this project
has been published or submitted to anybody.

Md.Sageer
 Acknowledgement
I, MD.Sageer Student in MPGI, Nanded is highly greatful to all those who guided me in
completing this project.

First of all, 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.

Last but not the least, I would like to thanks all faculties of MPGI, Nanded, who gave me
the useful tips and suggestions regarding project.

Words can never express the deep sense of gratitude, I feel for HDFC BANK
employees, who has been a constant source of inspiration and encouragement for me.

MD.Sageer
MBA MBA 3RD SEMESTER 2010-11
 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." Infact 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.

ORIGIN OF WORD BANK:

The origin of the word bank is shrouded in mystery. According to one view
point the Italian business house carrying on crude from of banking were called
banchi bancheri" According to another viewpoint banking is derived from German
word "Branck" which mean heap or mound. In England, the issue of paper money
by the government was referred to as a raising a bank.
 BANKING SYSTEM IN INDIA

A HISTORICAL PERSPECTIVE :

We can identify their 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 Baroda Ltd., 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.
 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.
 CLASSIFICATION ON BASIS OF
OWNERSHIP

On the basis of ownership banks are of the following types :

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.
ii 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.

iii 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.

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.
1. Agriculture co-operative banks, and
2. Land mortgage banks. The farmer provide short-term credit, while the letter
extend long-term loans to the farmers.
 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.

COMPANY HISTORY:

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 the
RBI's liberalization of the Indian Banking Industry in 1994. The bank was
incorporated in August 1994 in the name of 'HDFC Bank Limited',
with its registered office in Mumbai, India. HDFC Bank commenced
operations as a 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. Operational Excellence
2. Customer Focus
3. Product Leadership
4. People.

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 Headqarters 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 are 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.
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 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.
 SECURITY BY HDFC
Login Security:

Access to customer's NetBanking account is granted using a Customer ID and IPIN

(internet banking password) that is privy to the customer. Without a valid IPIN
corresponding to the customer ID, access to customer account cannot be gained by anyone.
The customer's NetBanking service is revoked if not in use by customer for more than 180
days for security.

IPIN Security:

 IPIN is randomly generated by the system and directly printed on tamper proof media
such that it is not accessible by anyone other than the customer.
 Customer is forced to change his IPIN such upon first login such that customer is assured
that IPIN is not compromised before delivery. IPIN is stored by the Bank by use of encryption
technology such that it is not accessible to anyone including the system administrator.

Session Security:

 Access to the customers are provided through a secure webpage that encrypts the session
between the customer's computer and the webpage using 128-bit encryption so that the
communication between the customer's computers and the webpage cannot be intercepted by
anyone over the internet. HDFC Bank systems time out the customer's login sessions to his
NetBanking account upon prolonged inactivity for protection against misuse.

Digital Certificate:

The webpage of the HDFC Bank's internet banking server is identified by means of a
digital certificate provided by Verisign to ensure its customer that they are on the correct site
and protect themselves from revealing their confidential account information on some fake
website.
Virtual keyboard:

Customer can use the feature of Virtual Keyboard while logging into his NetBanking
account. This protects the users IPIN from being compromised by keylogger software installed
on untrusted/shared computers e.g cyber cafes.

Insta Alert:

The Bank has InstaAlert service to send SMS/ Email alert to the customer upon
registration for defined transaction denominations and while adding beneficiary/ies for carrying
out Third Party Transfer transactions.

Security Solutions:

All banking systems are secured using state-of-the-art security solutions acknowledged
world wide viz, firewalls, intrusion detection systems, intrusion prevention systems, anti-
malware systems to extend secure banking services to our customers.

Security Teams:

The Bank has robust processes, skilled people and competent service providers who
monitor the security of our systems round the clock.
 BOARD OF DIRECTOR

Mr. C.M. Vasudev has been appointed as the Chairman of the Bank with effect from 6th
July 2010 subject to the approval of the Reserve Bank of India and the shareholders. Mr.
Vasudev has been a Director of the Bank since October 2006. A retired IAS officer, Mr.
Vasudev has had an illustrious career in the civil services and has held several key positions in
India and overseas, including Finance Secretary, Government of India, Executive Director,
World Bank and Government nominee on the Boards of many companies in the financial sector.

The Managing Director, Mr. Aditya Puri, has been a professional banker for over 25
years, and before joining HDFC Bank in 1994 was heading Citibank's operations in Malaysia.

The Bank's Board of Directors is composed of eminent individuals with a wealth of

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

Senior banking professionals with substantial experience in India and abroad head
various businesses and functions and report to the Managing Director. Given the professional
expertise of the management team and the overall focus on recruiting and retaining the best
talent in the industry, the bank believes that its people are a significant competitive strength.
Mr. . C.M. Vasudev (Chairman)
Mr. Jagdish kapoor, (Ex-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 40013
Tel. No. 66521000
Fax No. 24960737
Website : www. hdfcbank.com
 SWOT ANALYSIS
STRENGHTS :
* It has an extensive distribution network comprising of 319 branches in 166
cities & one international office in Dubai this provides a competitive edge
over the competitions.
* 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 processing of retail operation & direct banking operatiosn.
* 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 in its country.
* HDFC Bank is one of the largest private sector bank working in India.
* It has a highly automated environment in terms of information technology &
communication system.
* Infrastructure is best.
* It has many innovative products like kids Advantage scheme, NRI services.
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:
* The bank has started facing competition from players like SBI, PNB Bank in
the finance market itself. This reduce the profit margins in the future.
* Some Pvt. Banks have 7 days banking.
HDFC BANK business strategy emphasizes the following:

Increase market share in India’s expanding banking and financial

services industry by following a disciplined growth strategy focusing on quality
and not on quantity and delivering high quality customer service. Leverage our
technology platform and open scalable systems to deliver more products to more
customers and to control operating costs. Maintain current high standards for
asset quality through disciplined credit risk management. Develop innovative
products and services that attract the targeted customers and address
inefficiencies in the Indian financial sector. Continue to develop products and
services that reduce bank’s cost of funds. Focus on high earnings growth with
low volatility.
PRODUCT 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.
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
 Current Account
 Plus Current Account
 Trade Current Account
 Premium Current Account
 Regular Current Account
 Apex Current Account
 Max Current Account
 Reimbursement Current Account

Fixed Deposit
 Regular Fixed Deposit
 Super Saver Account
 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
B. Investments & Insurance

 Mutual Funds
 Insurance
 Bonds
 Financial Planning
 Knowledge Centre
 Equities & Derivatives
 Mudra Gold Bar

D. Forex Services

 Trade Finance
 Traveler’s Cheques
 Foreign Currency Cash
 Foreign Currency Drafts
 Foreign Currency Cheque Deposits
 Foreign Currency Remittances
 Forex Plus Card
E. Payment Services

 Net Safe
 Prepaid Refill
 Bill Pay
 Direct Pay
 Visa Money Transfer
 E-Monies Electronic Funds Transfer
 Excise & Service Tax Payment

F. Access Your Bank - One View

 Insta Alerts
 Mobile Banking
 ATM
 Phone Banking
 Branch Network
G. Cards

 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
2. WHOLESALE BANKING SERVICES

 Funded Services
 Non Funded Services
 Value Added Services
 Internet Banking
 Clearing Sub-Membership
 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
3. NRI BANKING SERVICES

 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
ACHIVEMENT’S 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 'Best Domestic Bank in India'
IBA Banking Technology 'Best IT Governance Award - Runner up'
Awards 2009
Global Finance Award 'Best Trade Finance Bank in India for 2009
IDRBT Banking Technology 'Best IT Governance and Value Delivery'
Excellence Award 2008
Asian Banker Excellence in 'Asian Banker Best Retail Bank in India
Retail Financial Services Award 2009 '

2008
Finance Asia Country Awards 'Best Bank and Best Cash Management
for Achievement 2008 Bank'
CNN-IBN 'Indian of the Year (Business)'
Nasscom IT User Award 2008 'Best IT Adoption in the Banking Sector'
Business India 'Best Bank 2008'

Forbes Asia Fab 50 companies in Asia Pacific

Asian Banker Excellence in Best Retail Bank 2008
Retail Financial Services
Asiamoney Best local Cash Management Bank Award voted
by Corporates
Microsoft & Indian Express Security Strategist Award 2008
Group
World Trade Center Award of For outstanding contribution to international
honour trade services.
Business Today-Monitor One of India's "Most Innovative Companies"
Group survey
Financial Express-Ernst & Best Bank Award in the Private Sector
Young Award category
Global HR Excellence Awards 'Employer Brand of the Year 2007 -2008'
- Asia Pacific HRM Congress: Award - First Runner up, & many more
Business Today 'Best Bank' Award
2007

Dun & Bradstreet – American 'Corporate Best Bank' Award

Express Corporate Best Bank
Award 2007
The Bombay Stock Exchange 'Best Corporate Social Responsibility
and Nasscom Foundation's Practice' Award
Business for Social
Responsibility Awards 2007
Outlook Money & NDTV Best Bank Award in the Private sector
Profit category.
The Asian Banker Excellence Best Retail Bank in India
in Retail Financial Services
Awards
Asian Banker Our Managing Director Aditya Puri wins the
Leadership Achievement Award for India
 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 Bank’s 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. I’m 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.”
 RATING

Credit Rating

The Bank has its deposit programs rated by two rating agencies - Credit Analysis &
Research Limited (CARE) and Fitch Ratings India Private Limited. The Bank's Fixed Deposit
programme has been rated 'CARE AAA (FD)' [Triple A] by CARE, which represents
instruments considered to be "of the best quality, carrying negligible investment risk". CARE has
also rated the bank's Certificate of Deposit (CD) programme "PR 1+" which represents "superior
capacity for repayment of short term promissory obligations". Fitch Ratings India Pvt. Ltd.
(100% subsidiary of Fitch Inc.) has assigned the "AAA ( ind )" rating to the Bank's deposit
programme, with the outlook on the rating as "stable". This rating indicates "highest credit
quality" where "protection factors are very high" .

The Bank also has its long term unsecured, subordinated (Tier II) Bonds rated by CARE and
Fitch Ratings India Private Limited and its Tier I perpetual Bonds and Upper Tier II Bonds rated
by CARE and CRISIL Ltd. CARE has assigned the rating of "CARE AAA" for the subordinated
Tier II Bonds while Fitch Ratings India Pvt. Ltd. has assigned the rating "AAA (ind)" with the
outlook on the rating as "stable". CARE has also assigned "CARE AAA [Triple A]" for the
Banks Perpetual bond and Upper Tier II bond issues. CRISIL has assigned the rating "AAA /
Stable" for the Bank's Perpetual Debt programme and Upper Tier II Bond issue. In each of the
cases referred to above, the ratings awarded were the highest assigned by the rating agency for
those instruments.
Corporate Governance Rating

The bank was one of the first four companies, which subjected itself to a Corporate
Governance and Value Creation (GVC) rating by the rating agency, The Credit Rating
Information Services of India Limited (CRISIL). The rating provides an independent assessment
of an entity's current performance and an expectation on its "balanced value creation and
corporate governance practices" in future. The bank has been assigned a 'CRISIL GVC Level 1'
rating which indicates that the bank's capability with respect to wealth creation for all its
stakeholders while adopting sound corporate governance practices is the highest.