HDFC case study of micro finance

HDFCHDFCKavita Mathews (M:03)Kavita Mathews (M:03)

Kevin Pinto (M:04)Kevin Pinto (M:04)Mamta Gour (M:06)Mamta Gour (M:06)

IntroductionIntroductionThe purpose was to provide loans for individuals The purpose was to provide loans for individuals looking at buying a house.looking at buying a house.

The reason this concept gained popularity was because The reason this concept gained popularity was because the younger generation became more independent. the younger generation became more independent.

They wanted to own a property but wanted financial They wanted to own a property but wanted financial support.support.

Brand positioningBrand positioningThe premier Housing Finance Corporation.The premier Housing Finance Corporation.

TrustworthyTrustworthy

Competition and Sales Competition and Sales strategystrategy

Due to RBI regulations, other banks too entered the Due to RBI regulations, other banks too entered the market.market.

Strategies like Direct Sales Agents and customized Strategies like Direct Sales Agents and customized customer solutions.customer solutions.

How to motivate rural customers How to motivate rural customers to take home finance?to take home finance?

How to motivate rural customers to How to motivate rural customers to take home finance?take home finance?

Customized loan repayment options like:Customized loan repayment options like:

Longer repayment optionsLonger repayment options

No penalty on early repaymentNo penalty on early repayment

Relaxed collateral normsRelaxed collateral norms

Loans for repairsLoans for repairs

What ways should be developed What ways should be developed by HDFC to reinvent itself and by HDFC to reinvent itself and ensure leadership position in ensure leadership position in

the market?the market?

Ways developed by HDFC to reinvent Ways developed by HDFC to reinvent itself and ensure leadership itself and ensure leadership

Expansion-More MergersExpansion-More Mergers

Keeping in mind , the success of HDFC-Centurion Bank merger , Keeping in mind , the success of HDFC-Centurion Bank merger , which is was the largest merger in Banking Sector which enabled HDFC which is was the largest merger in Banking Sector which enabled HDFC to expand its branch network from 750 to 1,850 branches and to expand its branch network from 750 to 1,850 branches and spreading from 325 to 820 cities in the immediate past two years.spreading from 325 to 820 cities in the immediate past two years.

It can be said that such large scale merger should be adopted by It can be said that such large scale merger should be adopted by HDFC for its re-invention.HDFC for its re-invention.

Hi-Tech Training & DevelopmentHi-Tech Training & Development

Employees are always as important as the Employees are always as important as the ““sugar to sugar to

the cakethe cake”” for any re-invention , hence HDFC apart from for any re-invention , hence HDFC apart from

e-learning & training for training new-recruits should e-learning & training for training new-recruits should

develop M-training module which should uses mobile develop M-training module which should uses mobile

as a mode of disseminating information and training.as a mode of disseminating information and training.

Revision of Insurance SlabRevision of Insurance Slab

““The great majority continues to trust government-owned banks The great majority continues to trust government-owned banks much more when it comes to parking hard-earned moneymuch more when it comes to parking hard-earned money”” because  because 

public sector banks have a government guarantee against failurepublic sector banks have a government guarantee against failure

They have an access to unlimited capital because the government They have an access to unlimited capital because the government backing. backing.

So if the insurance sector issue policies covering deposits above So if the insurance sector issue policies covering deposits above Rs.100k (up to Rs.100k is covered by Deposit Insurance Rs.100k (up to Rs.100k is covered by Deposit Insurance Corporation) to HDFC banks (as there is no risk of public sector Corporation) to HDFC banks (as there is no risk of public sector banks being wound up), there could be gradual change in this banks being wound up), there could be gradual change in this regard.regard.

CTC conditions..CTC conditions..Many things need to change – how chief executives and directors Many things need to change – how chief executives and directors

are appointed, salaries for senior appointments, the relationship are appointed, salaries for senior appointments, the relationship

with the shareholder (ie the government), the extent of with the shareholder (ie the government), the extent of

operational freedom, and so on.operational freedom, and so on.

In a market like home finance, what In a market like home finance, what steps should be adopted and steps should be adopted and

maintained by HDFC to ensure long maintained by HDFC to ensure long term relationship with their term relationship with their

customers?customers?

Customer centricCustomer centricHDFC to reinvent itself has to stay relevant to HDFC to reinvent itself has to stay relevant to

customers and ... The only way to rise up to this customers and ... The only way to rise up to this

challenge is by practicing true customer-centricity challenge is by practicing true customer-centricity

which means selling more protection-oriented products which means selling more protection-oriented products

such as term, health and mortgage protection policies.such as term, health and mortgage protection policies.

Steps adopted and maintained to ensure a Steps adopted and maintained to ensure a long term relationshiplong term relationship

HDFC Bank Uses CRM to achieve its HDFC Bank Uses CRM to achieve its ““One BankOne Bank”” Vision Boosting Profit and Customer SatisfactionVision Boosting Profit and Customer Satisfaction

Manage end-to-end sales process across departments for Manage end-to-end sales process across departments for all products on a single platform.all products on a single platform.

Use CRM to enhance cross sell, up-sell capabilities Use CRM to enhance cross sell, up-sell capabilities across all customer touch points.across all customer touch points.

As one of the top IT spenders, HDFC Bank has deep As one of the top IT spenders, HDFC Bank has deep relationships with all key technology partners.relationships with all key technology partners.

Customers are made aware about their loan transaction Customers are made aware about their loan transaction status through SMS, Email etc.status through SMS, Email etc.

Advance intimation is sent before the post dated Advance intimation is sent before the post dated cheques are banked.cheques are banked.

Enable service and action guarantee across channels.Enable service and action guarantee across channels.

Customers have access to multiple channels (like call Customers have access to multiple channels (like call centre, internet banking, email, phone banking, branch centre, internet banking, email, phone banking, branch visits etc.) for their service requirements.visits etc.) for their service requirements.

Thank you