HISTORY OF THE ORGANIZATION & OBJECTIVE Housing Development Finance Corporation Limited, more popularly known as HDFC Bank Ltd, was established in the year 1994, as a part of the liberalization of the Indian Banking Industry by Reserve Bank of India (RBI). It was one of the first banks to receive an 'in principle' approval from RBI, for setting up a bank in the private sector. The bank was incorporated with the name 'HDFC Bank Limited', with its registered office in Mumbai. The following year, it started its operations as a Scheduled Commercial Bank. Today, the bank boasts of as many as 1412 branches and over 3275 ATMs across India. Amalgamations In 2002, HDFC Bank witnessed its merger with Times Bank Limited (a private sector bank promoted by Bennett, Coleman & Co. / Times Group). With this, HDFC and Times became the first two private banks in the New Generation Private Sector Banks to have gone through a merger. In 2008, RBI approved the amalgamation of Centurion Bank of Punjab with HDFC Bank. With this, the Deposits of the merged entity became Rs. 1,22,000 crore, while the Advances were Rs. 89,000 crore and Balance Sheet size was Rs. 1,63,000 crore. Tech-Savvy HDFC Bank has always prided itself on a highly automated environment, be it in terms of information technology or communication systems. All the braches of the bank boast of 1
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HISTORY OF THE ORGANIZATION & OBJECTIVE
Housing Development Finance Corporation Limited, more popularly known as HDFC Bank Ltd,
was established in the year 1994, as a part of the liberalization of the Indian Banking Industry by
Reserve Bank of India (RBI). It was one of the first banks to receive an 'in principle' approval
from RBI, for setting up a bank in the private sector. The bank was incorporated with the name
'HDFC Bank Limited', with its registered office in Mumbai. The following year, it started its
operations as a Scheduled Commercial Bank. Today, the bank boasts of as many as 1412
branches and over 3275 ATMs across India.
Amalgamations
In 2002, HDFC Bank witnessed its merger with Times Bank Limited (a private sector bank
promoted by Bennett, Coleman & Co. / Times Group). With this, HDFC and Times became the
first two private banks in the New Generation Private Sector Banks to have gone through a
merger. In 2008, RBI approved the amalgamation of Centurion Bank of Punjab with HDFC
Bank. With this, the Deposits of the merged entity became Rs. 1,22,000 crore, while the
Advances were Rs. 89,000 crore and Balance Sheet size was Rs. 1,63,000 crore.
Tech-Savvy
HDFC Bank has always prided itself on a highly automated environment, be it in terms of
information technology or communication systems. All the braches of the bank boast of online
connectivity with the other, ensuring speedy funds transfer for the clients. At the same time, the
bank's branch network and Automated Teller Machines (ATMs) allow multi-branch access to
retail clients. The bank makes use of its up-to-date technology, along with market position and
expertise, to create a competitive advantage and build market share.
Capital Structure
At present, HDFC Bank boasts of an authorized capital of Rs 550 crore (Rs5.5 billion), of this
the paid-up amount is Rs 424.6 crore (Rs.4.2 billion). In terms of equity share, the HDFC Group
holds 19.4%. Foreign Institutional Investors (FIIs) have around 28% of the equity and about
17.6% is held by the ADS Depository (in respect of the bank's American Depository Shares
(ADS) Issue). The bank has about 570,000 shareholders. Its shares find a listing on the Stock
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Exchange, Mumbai and National Stock Exchange, while its American Depository Shares are
listed on the New York Stock Exchange (NYSE), under the symbol 'HDB'.
Our Vision
'The most successful and admired life insurance company, which means that we are the most
trusted company, the easiest to deal with, offer the best value for money, and set the standards in
the industry'.
'The most obvious choice for all'.
Our Values
Values that we observe while we work:
Integrity
Innovation
Customer centric
People Care “One for all and all for one”
Team work
Joy and Simplicity
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ORGANIZATIONAL STRUCTURE
Brief Profile of The Board of Directors
Mr. Deepak S. Parekh is the Chairman of the Company. He is also the Chairman and Director
of Housing Development Finance Corporation Limited (HDFC Limited). He joined HDFC
Limited in a senior management position in 1978. He was inducted as a whole-time director of
HDFC Limited in 1985 and was appointed as its Chairman in 1993. Mr. Parekh is a Fellow of the
Institute of Chartered Accountants (England & Wales).
Mr. Keki M. Mistry joined the Board of Directors of the Company in December, 2000. He is
currently the Vice Chairman and Chief Executive Officer of HDFC Limited. He joined HDFC
Limited in 1981 and became an Executive Director in 1993. He was appointed as its Managing
Director in 2000. Mr. Mistry is a Fellow of the Institute of Chartered Accountants of India and a
member of the Michigan Association of Certified Public Accountants.
Ms. Renu S. Karnad is the Managing Director of HDFC Limited. She is a graduate in Law and
holds a Master's degree in Economics from Delhi University. She has been employed with
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HDFC Limited since 1978 and was appointed as the Executive Director in 2000 and Deputy
Managing Director in 2007. She is responsible for overseeing all aspects of lending operations of
HDFC Limited.
Mr. David Nish joined Standard Life on 1 November 2006 as Group Finance Director and
remained in that position until December 2009. He is appointed as the Executive Europe on 1st
January 2010. In 2000 he was awarded the Scottish Business Awards Finance Director of the
Year and from 2004 to 2005 he served on the Government Employers Pension Task Force. He is
a member of the Institute of Chartered Accountants of Scotland. He joined the Board of
Directors in February 2010.
Mr. Nathan Parnaby is appointed as the Chief Executive, Europe & Asia of Standard Life in
the year 2010. Nathan joined Standard Life in 1982 as Investment Manager, responsible for all
UK net funds. He was appointed a Director of the Standard Life Investments’ board. He is a
Mathematics graduate from Oxford University and the Member of the Securities Institute. He
joined the Board of Directors in December 2009.
Mr. Norman K. Skeoch is currently the Chief Executive in Standard Life Investments Limited
and is responsible for overseeing Investment Process & Chief Executive Officer Function. Prior
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to this, Mr. Skeoch was working with M/s. James Capel & Co. holding the positions of UK
Economist, Chief Economist, Executive Director, Director of Controls and Strategy HSBS
Securities and Managing Director International Equities. He was also responsible for Economic
and Investment Strategy research produced on a worldwide basis. Mr. Skeoch joined the Board
of Directors in November 2005.
Mr. Gautam R. Divan is a practising Chartered Accountant and is a Fellow of the Institute of
Chartered Accountants of India. Mr. Divan was the Former Chairman and Managing Committee
Member of Midsnell Group International, an International Association of Independent
Accounting Firms and has authored several papers of professional interest. Mr. Divan has wide
experience in auditing accounts of large public limited companies and nationalised banks,
financial and taxation planning of individuals and limited companies and also has substantial
experience in structuring overseas investments to and from India.
Mr. Ranjan Pant is a global Management Consultant advising CEO/Boards on Strategy and
Change Management. Mr. Pant, until 2002 was a Partner & Vice-President at Bain & Company,
Inc., Boston, where he led the worldwide Utility Practice. He was also Director, Corporate
Business Development at General Electric headquarters in Fairfield, USA. Mr. Pant has an MBA
from The Wharton School and BE (Honours) from Birla Institute of Technology and Sciences.
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Mr. Ravi Narain is the Managing Director & CEO of National Stock Exchange of India
Limited. Mr. Ravi Narain was a member of the core team to set-up the Securities & Exchange
Board of India (SEBI) and is also associated with various committees of SEBI and the Reserve
Bank of India (RBI).
Mr. A. K.T. Chari has joined HDFC Standard Life as a Director on March 10, 2010. Mr. Chari
has completed his Electrical Engineering from Madras University in 1962. He is associated with
Infrastructure Development Finance Company Ltd. (IDFC) for last 11 years. Currently he is
handling project finance for infrastructure projects at IDFC. Prior to this he was associated with
Infrastructure Development Bank of India (IDBI) from 1975 to 1999.
Mr. Gerald E. Grimstone was appointed Chairman of Standard Life in May 2007, having been
Deputy Chairman since March 2006. He became a director of the Standard Life Assurance
Company in July 2003. He is also Chairman of Candover Investments plc and was appointed as
one of the UK’s Business Ambassadors by the Prime Minister in January 2009. Gerry held senior
positions within the Department of Health and Social Security and HM Treasury until 1986. He
then spent 13 years with Schroders in London, Hong Kong and New York, and was Vice
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Chairman of Schroders’ worldwide investment banking activities from 1998 to 1999. He is the
Alternate Director to Mr. David Nish.
Mr. Michael G Connarty is responsible for Standard Life's investments in life assurance Joint
Ventures in India and China. He holds a degree in Law and MBA. He has worked with Standard
Life for 33 years in managerial positions covering a number of fields such as Pensions law,
International Marketing, Operational Management, Strategy, Risk, Compliance, Company
Secretarial and Banking. He has acted as Project Manager for the start-up project of the
Company in 2000. He is the Alternate Director to Mr. Norman K. Skeoch.
Mr. Amitabh Chaudhry is the MD and CEO of HDFC Standard Life. Before joining HDFC
Standard Life, he was the MD and CEO of Infosys BPO and was also heading an Independent
Validation Services unit in Infosys Technologies. He started his career with Bank of America
delivering diverse roles ranging from Head of Technology Investment Banking for Asia,
Regional Finance Head for Wholesale Banking and Global Markets and Chief Finance Officer of
Bank of America (India). He moved to Credit Lyonnais Securities in 2001 in Singapore where he
headed their investment banking franchise for South East Asia and structured finance practice for
Asia before joining Infosys BPO in 2005. Mr. Chaudhry completed his Engineering in 1985 from
Birla Institute of Technology and Science, Pilani and MBA in 1987 from IIM, Ahmedabad.
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Mr. Paresh Parasnis is the Executive Director and Chief Operating Officer of the company. A
fellow of the Institute of Chartered Accountants of India, he has been associated with the HDFC
Group since 1984. During his 16-year tenure at HDFC Limited, he was responsible for driving
and spearheading several key initiatives. As one of the founding members of HDFC Standard
life, Mr. Parasnis has been responsible for setting up branches, driving sales and servicing
strategy, leading recruitment, contributing to product launches and performance management
system, overseeing new business and claims settlement, customer interactions etc.
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FINANCIAL PERFORMANCE
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MATERIAL COST CONTROL
Materials control is the system that ensures the provision of the required quantity and quality at
the required time with in the minimum of investment. It covers the following functions:
1. Stock control
2. Scheduling of requirements
3. Purchasing
4. Receiving and inspecting
5. Storing and issuing
Need for Materials Control:
One of the first step in the installation of cost and management accounting system is planning the
proper control of materials and supplies from the time orders are placed with supplier until they
have been consumed in the plant and office operation or have been sold as merchandise.
Requirements of a System of Materials control:
There are many requirements to implement an adequate satisfactory system of materials control.
Stock Control:
The materials purchased by a concern may be classified as stock items which are taken into store
and held until required, or as direct deliveries to the point of consumption. The control of those
materials which are stock items is known as stock control.
Inventory Quantity Standards:
Ordering Level or Ordering Point or Re-order Level:
This is that level of materials at which a new order for supply of materials is to be placed. In
other words, at this level a purchase requisition is made out.
Minimum Level or Minimum Limit:
The minimum level or minimum stock is that level of stock below which stock should not be
allowed to fall.
Maximum Level or Maximum Limit:
The maximum stock limit is upper level of the inventory and the quantity that must not be
exceeded without specific authority from management