DECLARATIONIKALLUhereby declare that the project
titledRECRUITMENT ANDSELECTION PROCESS IN HDFC BANKis my own work
and efforts which iscompleted under the supervision of Ms.MAMTA
CHAUDHARY.The Researchreport has beensubmittedtoSubharti Ui!"rsit#$
M""rutfor thepurpose of the compliance of any requirement of any
examination or any degree earlier. KALLU M.B.A. I% S"& R'(( N'.
) *+,*-./**+1ACKNOWLEDGEMENTWhen a person is help, guide and
co-operated his or her heart is ound topa! gratitude"#It is not a
single mans effort which is sufficient for the accomplishment ofa
Research. arious factors! situations and persons integrate to
provide thebackground for accomplishment ofa taskrequirestheeffort
ofso manypeople and the work is no different.I acknowledge here the
names of those people who have been instrumentalin preparation of
this Research.I am sincerely indebted to Ms. Ma&ta Chau0har#
"#aculty! $anagement!%IT&! $eerut' for his valuable suggestion
and inspiration to undergo thisstudyandhis
unstiltedhelpwhichhegavefor thecompletionof thisResearch.$y
grateful thanks are also due to various others technocrats! who
inspireoftheremultifariouspre(occupation!
werekindenoughtosparetimetogrant me personal help and others
cooperative activities. I would also liketo thanks co(operation for
providing the recruitment )selection andsupplemental information
used in this study.KALLU2PREFACETh" 1ur1's" '2 r"s"ar3h r"1'rt 4as
t' ("ar th" 1ra3ti3a( a11(i3ati''2 R"3ruit&"t a0 S"("3ti'
Pr'3"ss a0 its i&1'rta3" i HDFC ba5a('6 4ith th" HR 1'(i3i"s '2
HDFC ba5 4hi3h 1ri0"s its"(2 t' b" th"&ar5"t ("a0"r.7hi("
3arr#i6 'ut th" stu0# I ha!" 6ai"0 a 6''0 a&'ut '2 5'4("06"a0
isi6hts '2 h'4 HR 0"1art&"t 4'r5s but I ha!" t'u3h"0 th" ti1
'2i3"b"r6. Th"r" 4as &'r" t' ("ar but 0u" t' 3'strait '2
ti&" it 4as 't1'ssib(". Th"HRD&aa6"rhas
t'4'r54ithth"&issi'ar#s1irit.U(i5" &a# r'("s i a 'r6ai8ati'
4h"r" ta6ib(" sh'rt) t"r&b""2its 3a b" 'btai"0$ it is 0i22i3u(t
2'r HRD 2u3ti'ar# t'0"&'strat" a# ta6ib(" sh'rt)
t"r&a33'&1(ish&"t. Y"t
HRD&aa6"rsar"t"&1t"0t'sh'4t'th"t'1&aa6"&"t$
(i"&aa6"ra0th"&s"(!"sthat
th"#ar"&a5i6thi6sha11"thr'u6htraii61r'6ra&$ r"3ruit&"t9
s"("3ti'. I HDFC ba5 a &"ti3u('us(# atura( t"a& sta0s at
th" !"r# h"art '2th" 6r'u1. :$*** P"rs'"( "!i3" 1"r2"3t
3a&ara0"ri". Ast"a02ast0"0i3ati' t' ;ua(i2#a
attai&"t'2&a'! 34#0 was the clear leader. I4;I ;ank!
however took the cakeby doubling its net profit! which reached
Rs.,:.// crores in $arch 1:::.Thejumpinprofits canmainlybe
attributedtonon(traditional sectors suchascommission! exchange!
brokerage! and profit on sale of investments.1718RBI
POLICIESTheR;Idoesnot
interfereindeterminingtheprimelendingratesforcommercial banks. The
onus is on banks to do so. R;I regulates interest ratesonsavings
accounts!exportcredit! andcredit forsmalland tinysectors.Therates
fixed by R;I are quite low at 8>! 7>! and 5> respectively
for ;ank Rate!Repo Rate! and savings account rate. #ixing rates on
bank credit is thediscretion of the banks. Though banks are allowed
to offer variable interest rateson longer(term deposit rates! they
continue to offer fixed deposit rates.0urrent account transaction
norms easedEorms oncurrent account transactions were eased! inline
withthe#oreign &xchange $anagement 6ct "#&$6'. The ;asic
Travel fixedrate Repowill also be withdrawn. The facilities
ofcollateralised lending and Tier(I refinance facilities will
continue. 19The 0entral government has grantedapproval tobanks
duringthe currentfinancial year to make a foray into forward
trading in gold by including gold onthe list of commodities
eligible for hedging under the #orward 0ontract"Regulation' 6ct!
2/71.$&6%DR&% 64-*T&4 ;J R;I$easures to increase
liquidity and decrease the cost of funds to banks ;ank rate cut by
2> from .> to 8> 0RR cut by :.7>! from .> to 8.7>
Repo rate cut by 2>! from ,> to 7>%avings deposit rate for
scheduled commercial banks cut from 5.7> to 5.:>2021MABOR
COMPETITORS%T6T& ;6EF -# IE4I6 It is IndiaKs largest bank with
assets worth Rs.1! ,27 billion. %;I also has thedistinction of
having the worlds largest branch network of /!::: branches. Thebank
has a share of about 11> of IndiaKs loans and deposits! and is a
top playerintrade financeandforex. Throughits subsidiaries! %;I is
alsoaleadingprovider of other financial products likemutual funds!
investment banking!housingfinance andfactoring. %;I has a market
share of one(fifthof thebanking sector in India. Eationali=ed banks
and %;I and its subsidiaries formthe heart of the Indian banking
system. These two entities operate 8:> of thetotal branches
spread across the length and breadth of India. ;6EF -# IE4I66s one
of the leadingpublic sector Indianbanks! ;ankof India has
thedistinctionofbeingthefirstbanktoopenabranchoutsideIndia.Thebank!whichcurrentlyhasoverseasoperationsinabout
2:countries! isoneoftheleaders in financing foreign trade. It is
one of the few Indian banks that providetele(bankingfacilities!
Remote 6ccess Terminals for corporate clients!
and%ignatureRetrieval %ystem. %omeoftherecent
foraysmadebythebankinterms of its business operations include
bullion business and demat services. 2234#0 ;6EF Itis a pioneer in
terms oftheintroduction andadoptionof a model bankingpolicythat
suits Indiaandother developingcountries. Thebank! whichissynonymous
with progressive banking in India! has a strong presence in
ruralIndia. The bankwas nationali=edin2/,/. 34#0;ankhas
correspondentrelations with 5:: banks from all over the globe. The
bank is also one of theleading players in the foreign exchange
market.0itibank! idbi! hdfc!hsbc23CHALLEN@E FOR THE INDIAN BANKIN@
SECTORIndian banks have a long way to go before they reach the si=e
of theirinternational counterparts. &ven the biggest Indian
bank! %tate ;ank of India! isnowhere onthe international scale!
withassets inthe range of I7:billion.6bsence of significant scale
benefits and higher implicit costs of severalservices are
perpetuating the poor ranking of Indian banks in the
internationalleague tables. %hareholdingstructure!
governmentregulationsandsheersi=eofthecountryensure that the
existence of Indian banks is not at stake at this stage. Ghat is
atstake is the banking support that is available for Indian
economic activity! andtherebytheinternational competitivenessof
varioussectors. Ghat isalsoatstakeisthescopefor
thebankingindustrytoearnsuperior returnsthroughdifferentiated wider
services.#urther! it is quite conceivable that with passage of
time! as government holdingin banks is progressively divested!
regulatory authorities will be unable to holdbacktheinternational
giantsfrombuyingout Indianbanks. &veneconomieswith a Ldomestic
mindsetL! such as #rance and Bermany! have been forced tobow before
the international capital market forces.24It would be a shame if
painstakingly built retail strength is offered on a platter tosome
predator. The challenge can be met through some concerted action
(25BovernmentThe Bovernment needs to do away with artificial
fragmentation ofthefinancial sector. 6caseinpoint is the
segregationof banks andfinancial institutions induced by policy. If
this is changed! we may wellsee mergers between the two sectors to
create organi=ations of si=e. Ghynot amerger of Industrial
4evelopment ;ankof Indiawith;ankof;aroda! or even better with %tate
;ank of IndiaM This would
definitelyleadtoamergerbetween34#0and34#0;ankandforthat
matterbetween34#0and34#0;ank.
Thepossibilitiesareinterestingandnumerous. 4omestic ;anks4omestic
;anks ( private as well as public ( need to continuously
exploreoptions toacquire or mergewith otherinstitutionstoenhance
their si=e!serviceor skill(set. This
couldalsomeanlookingbeyondthenationalboundaries as truly global
corporations do.Eew InitiativesThe recent crisis in the #ar
&ast has demonstrated the need for arobust banking sector.
Therefore the wholestructure of RegionalRural;anks "RR;s' and Drban
0o(operative ;anks "D0;s' needs to bestrengthened. The focus that
#$0B companies such as 3industan 9everhavegiventotherural
sectorprovesthat privatesectorinterest
isnot26limitedtothecitiesandmajor towns. Technological
changes"suchaswireless communication! net etc.' have drastically
changed thecommunications scenario. This may be the time to come
out withinteresting initiatives with regard to structure of RR;s
and D0;s so thatprivate sector organi=ations ( banks as well as
non(banks ( play a greaterrole in meeting the needs and aspirations
of hitherto neglected parts of thecountry. %ocial considerations
The full benefit of mergers can only be reali=ed if they are
followed upwith some hard measures such as re(location ? closure of
branches!rationali=ation of employee strength etc. It would be a
welcome change if themanagement and unions collaborate in seeking
appropriate social security fromthe Bovernment ( financed out of
the divestment of stake in these banks. Indian banking has to
operate with a global mindset even while fulfilling localbanking
requirements. ;y joining in the effort to make this happen! we will
getthe banking service we need. &lse! we will deserve the
banking service we get.27R&0RDIT$&ETRecruitment
andselectionare the most important functions inanorgani=ation
because with the help of these functions the management
selectsthebestavailablecandidatefromabatchofthem.Theorgani=ations!
inthisgrowing competitive world! need to have the best of the
manpower so as to havean edge over its competitive.6ccording to
#lippo!"Recruitment is the process of searching forprospective
employees and stimulating and encouraging them to apply for jobsin
an organization." In the words of Joder!"Recrutiment is a process
to discover the sources ofmanpowertomeet therequirementsof
thestaffingscheduleandtoemployeffective measured for attracting
that manpower in adequate numbers tofacilitate effective selection
of an efficient working force."The recruitment needs can be
classified into( *lanned. 6nticipated. Dnexpected.28 *lanned need
arise from changes in the organi=ation and retirement policy.These
occur due the expected changes in the organi=ation so the
managementcan make a proper policy for it. 6nticipated need refer
to the movements in personnel which an organisationcan predict by
studying the trends in the internal and external
environments.Resignations! deaths! accidents and illness result in
to the unexpected needs.FEATURESA Recruitment is a process or a
series of activities rather than a single event. It is a linking
activity as it brings together the employers and employees. It is
positive process because in this activity the employers want to
havethemaximumnumberofjobseekerssoastohaveawiderscopeforchoice
ultimately leading in spotting right persons for job. It is an
important function as it makes it possible to acquire the numberand
type of persons required for the effective functioning of
theorgani=ation. Itisanongoingfunctioninalltheorgani=ations!
butthevolumeandnature of recruitment varies with the si=e! nature
and environment of theorgani=ation.29 It is a complex process
because a number of factors affect it ((the natureof thejoboffered!
imageof theorgani=ation! organi=ational policies!working conditions
etc.SOURCES OF RECRUITMENTATh" !ari'us s'ur3"s '2 r"3ruit&"t
ar" ) It"ra( S'ur3"sA I3(u0") *resent &mployees who can be
transferred or given promotions. The retired and retrenched
employees who want to return to the company. 4ependents and
relatives of the deceased and disabled employees. E