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[Type the document title]

CONTENTS

1 Banking Structure in India

2 Indian Banking Industries

3 Upcoming Foreign Banks in India

4 HDFC BANK

5 Technology used

6 Company Profile

7 Product and Customer segments

8 Business Strategies

Rupee Earned Rupee SpentRecent Developments

SWOT Analyses


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The Banking Sector

The banking system in India is significantly different from that of other Asiannations because of the countrys unique geographic, social, and economic

characteristics. India has a large population and land size, a diverse culture, andextreme disparities in income, which are marked among its regions. There are highlevels of illiteracy among a large percentage of its population but, at the same time,the country has a large reservoir of managerial and technologically advancedtalents. Between about 30 and 35 percent of the population resides in metro andurban cities and the rest is spread in several semi-urban and rural centers.

The countrys economic policy framework combines socialistic and capitalisticfeatures with a heavy bias towards public sector investment. India has followed the

path of growth-led exports rather than the exported growth of other Asian

economies, with emphasis on self-reliance through import substitution. Thesefeatures are reflected in the structure, size, and diversity of the countrys bankingand financial sector. The banking system has had to serve the goals of economic

policies enunciated in successive five year development plans, particularlyconcerning equitable income distribution, balanced regional economic growth, andthe reduction and elimination of private sector monopolies in trade and industry. Inorder for the banking industry to serve as an instrument of state policy, it wassubjected to various nationalization schemes in different phases (1955, 1969, and1980). As a result, banking remained internationally isolated (few Indian banks had

presence abroad in international financial centers) because of preoccupations withdomestic priorities, especially massive branch expansion and attracting more

people to the system. Moreover, the sector has been assigned the role of providingsupport to other economic sectors such as agriculture, small-scale industries,

exports, and banking activities in the developed commercial centers (i.e., metro,urban, and a limitednumber of semi-urban centers).

The banking systems international isolation was also due to strict branch licensingcontrols on foreign banks already operating in the country as well as entryrestrictions facing new foreign banks. A criterion of reciprocity is required for anyIndian bank to open an office abroad. These features have left the Indian bankingsector with weaknesses and strengths. A big challenge facing Indian banks is how,under the current ownership structure, to attain operational efficiency suitable formodern financial intermediation.


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Financial Structure

The Indian financial system comprises the following institutions:

1. Commercial banksa) Public sector

b) Private sectorc) Foreign banksd) Cooperative institutions

i. Urban cooperative banksii. State cooperative banks

iii. Central cooperative banks

2. Financial institutionsa. All-India financial institutions (AIFIs)

b. State financial corporations (SFCs)c. State industrial development corporations (SIDCs)

3. Nonbanking financial companies (NBFCs)

4. Capital market intermediaries


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Disclosure, Accounting Framework,

And Supervision

There should be consolidation of balance sheets of different entities of banks toreveal their strength and to disclose connected landings, pattern of assets andliabilities (domestic and foreign) in different maturities, and NPAs. Some banksoverseas are required to publish cash flows; practice Indian banks have started. Thedisclosure should also include migration patterns of asset classification, e.g., fromstandard to substandard, and vice versa, as a measure of the quality ofmanagement.

The Indian system of governance (in the public and private sectors) has long

fostered a climate of resistance to bankruptcy and also a tendency to providebailouts that distort the risk. As such, the reform process will be a long haul. Thesequencing may not be perfect and will necessitate adjustments.Restructuring will also be required separately for institutions remaining indifficulty. Real sector reforms, especially in terms of international auditingstandards, accounting, timely and accurate information to markets, and goodgovernance practices, must be aggressively pursued to support improvements inthe soundness of the financial system.


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Regulation and Supervision

REGULATORY FRAMEWORK

The Narasimham Committee (II) suggested that the Basic Core Principles ofEffective Bank Supervision be regarded as the minimum to be attained. Banksmust be obligated to take into account market risk weights to foster a sound andstable system. For RBI to effectively carry out its monetary policy, delineation ofsupervision/regulation from monetary policy is required. The executive associatedwith monetary authority should not be in the supervision board, to avoidweakening of monetary policy, or banking regulation and supervision. Theseparation of the Board of Financial Supervision (BFS) from RBI has to beinitiated to supervise the activities of banks, FIs, and NBFCs. A new agency, the

Board for Financial Regulation and Supervision (BFRS), would have to be formed.To bring about integrated supervision of the financial system, the NarasimhamCommittee (II) recommended putting urban cooperative banks (UCBs) within theambit of BFS and proposed prudential and regulatory standards besides new capitalnorms for UCBs. The Narasimham Committee (II) recommended amendments to

the RBI Act and Banking Regulation Act with regard to the formation of BFRS.

REGULATION OFFINANCIAL CONGLOMERATES

The BIS Tripartite Group agreed that the term financial conglomerate should be used to refer to anygroup of companies under common control whose exclusive or predominant activities consist ofproviding significant services in at least two different financial sectors [e.g., banking, securities,insurance]. Many of the problems encountered in the supervision of financial conglomerates arise whenthey offer not only financial services, but also nonfinancial services and products. Coordination betweenRBI, Insurance Regulatory Authority, and SEBI is increasingly urgent.

SEPARATING SUPERVISION

The likely conflict between monetary policy and supervisory concerns can be taken

as the basis and the rationale for combining the two functions. Separate authoritystructures for the two functions have more likelihood of coming into conflict witheach other. The regulatory and supervisory systems have to take into account

peculiarities of the banking and financial structures. For instance, Indias RRBstructure is vast, its cooperative movement quite strong, but banks in this sector aregenerally quite weak.


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Capital Adequacy

A capital adequacy of 9 percent should be achieved by the year 2000 and 10 percent by 2002. This goal should be weighed against the expected financialsupport from banks for economic growth and protection of risk assets. In the first

phase of reforms (1991-1997), banks changed their approach from growth budgeting to balanced growth budgeting (i.e., with reference to their ownfunds). The dilemma of banks shortage of capital to cope with increasing creditdemand must be resolved as a priority so that capital adequacy does not become anend in itself.

Measures should not be implemented in isolation. If the capital adequacy levels are

being brought to international levels, then the concept of a tier-3 capital shouldalso be introduced, i.e., as a subordinated debt instrument (of shorter maturity of

two years) much like the bonds issued towards tier-2 capital (of five yearsmaturity). Other measures to strengthen banks should seek to eliminate themanagement dilemma. This can be done if banks themselves internalize a cultureof self evaluation under the CAMELS model by undertaking periodicalmanagement audits. The core message of capital adequacy and prudential norms isself regulation.

Measures to be taken in the second phase of banking reforms should be based upona study of the impact of reforms initiated in the first phase. But as the reforms wereintroduced in stages, it is too early to assess their impact. What has been achievedis transparency with respect to banks financial statements, bringing Indianaccounting standards closer to internationally accepted norms. One discernibleimpact has been that all but two PSBs (Indian Bank and United Commercial

Bank), had met by 31 May 1997 the capital adequacy norm of 8 percent and someare already well above that threshold. For instance, that for SBI is 14.58 percent;UBI, 10.86 percent; BOI, 9.11 percent; DenaBank, 11.88 percent; and IDBI, 13.7

percent. The weaknesses that have emerged in the banking system are in fact

weaknesses of the pre-reform period. The issues to be tackled in the second phaseof reforms are large and cannot be delayed because the adjustment process would

become increasingly difficult. As far back as 1961, RBI advised banks to aim for aCAR of 6 percent (of paid-up capital and reserves to deposits) because they had

been increasing their assets without a corresponding augmentation in the capital base. This ratio declined from 9 percent in 1950 to 4 percent in 1960 and 1.5percent in 1978.


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Mergers and Recapitalization

The Narasimham Committee recommended that after the activities of DFIs and banks have converged for a period, the DFIs should be converted into banks,

leaving only two types of intermediariesbanks and nonbanks. While mergers between strong financial institutions would make sense, the weak banks in thesystem would have to be given revival packages. The licensing of new privatesector banks needs to be reviewed, while foreign banks will have to be encouragedto extend their operations.

The importance of the tasks ahead is underlined by the fact that Governmentrecapitalization of nationalized banks has cost Rs200 billion. SBI has been an

exception particularly because it has addressed (since 1974) the task of reflectingits financial strength through the building of reserves. This is due to therequirement to raise lines of credit in the international market for itself and forIndian corporate. SBI has done this regularly for some years since 1972. It was latein establishing offices overseas but quickly caught up with international standards

of management. One factor that has helped SBI has been the private shareholdingsheld in it even after 1955 when RBI acquired a majority share. As a result, SBI has

been required to hold annual general meetings of shareholders and has benefitedfrom the system of checks and balances, disclosure disciplines, and dividend

expectations of shareholders.


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Human Resources Development

Human resources are not merely an asset but the real capital of a bank. Banking inthe future will require knowledgeable workers. A bank should have a group of

chief officers in a variety of fields so that the collective wisdom of theirorganization is at the fingertips of every employee. An integrated body ofknowledge and professionalism in banking has to be in place to ensure continuedfinancial viability. Staff morale plays a crucial role in developing goodorganizational culture. In that context, training is going to be an important factor.

Resuming recruitment of young trainees, training and retraining of personnel,accelerated promotions for young people through competition, studious habits,strong staff management, matching resources with emerging responsibilities,developing backup support to determine recruitment needs of new skills, andspread of an IT culture are among the issues that have to be addressed. The focusshould be to create core competencies for handling various types of risks andcustomer sophistication, to meet all needs, from rural to urban.

There are several institutes and colleges that provide skills- and management-oriented training programs to staff every year. Some are dedicated to individual

banks, while a few institutes cater to the needs of all Indian banks and FIs.

However, there is only one institute that conducts professional examinations theIndian Institute of Bankers, which has completed 70 years of service to the bankingindustry in the country. It develops professionally qualified and competent bankersthrough examinations and continuing professional development programs.

Recognizing that the trend throughout the world is to acquire proficiency inmanagement through Master of Business Administration (MBA) degrees, theinstitute has signed a memorandum of understanding with the Indira Gandhi

National Open University, New Delhi, to offer an MBA in Banking and Finance.This program will enable a practicing banker to bridge professional experiencewith academic excellence. Banks need to encourage the attainment of relevant

professional qualifications among staff, and the institutes activities are steps in theright direction.

Analysis of NPA management in banks has revealed that instruction manuals inmost banks are not up-to-date. Audit systems concerned with exercise of


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preventive and detective controls cannot be effective in such an environment,while training systems will lack a proper foundation. RBI should assign

proportionate punitive negative ratings to banks for such deficiencies. The

Narasimham Committee (II) has also called for the updating of manuals in banks.Another area of training should concern codes of ethics and public accountability.


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Factoring Services

Factoring services have not taken off even though they improve velocity ofreceivables, thus affording better credit control. Only three important factoringsystems have been established, namely, SBI, Canara Bank, and SIDBI. Experienceof existing factoring companies in India is that average credit period of receivablesis cut by more than 25 percent resulting in cost reduction of working capital. Therigorous follow-up by factoring companies also decreases debt delinquency.

Application of electronic data interchange (EDI) needs to be progressively adoptedto accelerate growth of factoring services. Banks, corporate, medium-sizeindustries, and SSIs should unite to develop electronic message formats in

receivable portfolio management and collection systems.

The adoption of EDI will allow computer-to-computer exchanges of businesstransactions such as purchase orders, invoices, shipping notices and other standard

business correspondence between trading partners. Exporters and importers as wellas domestic traders can translate all foreign or domestic trade related documentselectronically without any human intervention from their own premises, drasticallyreducing paperwork and increasing efficiency. Even though measures are beingtaken to increase exports and earn foreign exchange, the non-implementation ofEDI is proving to be a major obstacle to boosting exports because many countriescarry out trade transactions mostly electronically


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External Sector

External sector development, particularly with respect to trade, should continue to be a major concern if stable growth is to be encouraged and economic

competitiveness enhanced.

If export performance does not improve, the consequences for the banking andfinancial sectors might be serious. External assistance to the export sector should

be extended by multilateral agencies through the Indian banks and FIs. During1989/90, the World Bank extended loans to Indian banks to finance export projectsand to allow repayments to be retained as equity for banks. This should beundertaken again in the current and future financing activities of multilateral loaninstitutions.

Money Market

The Narasimham Committee recommended that banks and primary dealers aloneshould be allowed in the interbank call and notice money market. NBFCs would

get access to other forms of instruments in the money market such as billrediscounting, commercial papers, and T-bills. It also suggested opening the T-billmarket to FIIs to broaden its base. The imperfections of money market lie in thetraditional nomenclature used; for instance, the call money market, which,instead of allowing clearance only of temporary surpluses and deficits, is actuallytreated as a source of regular funding by banks (particularly foreign banks). Theneed is to remove the word call from various reports and publications of RBI and

define it clearly as a composite money market for call funds and term funds. Thereis little activity in the term funds market even though the liability structure of

banks and DFIs has undergone a considerable transformation.


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BANKING STRUCTURE IN INDIA

Here we more concerned about private sector banks and competition among them.

Today, there are 27 private sector banks in the banking sector: 19 old private sectorbanks and 8 new private sector banks. These new banks have brought in state-of-the-art technology and aggressively marketed their products. The Public sector

banks are facing a stiff competition from the new private sector banks. The bankswhich have been setup in the 1990s under the guidelines of the NarasimhamCommittee are referred to as NEW PRIVATE SECTOR BANKS.


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New Private Sector Banks

Superior Financial Services

Designed Innovative Products

Tapped new markets

Accessed Low cost NRI funds

Greater efficiency

INDIAN BANKING INDUSTRIES

The Indian banking market is growing at an astonishing rate, with Assets expectedto reach US$1 trillion by 2010. An expanding economy, middle class, andtechnological innovations are all contributing to this growth.

The countrys middle class accounts for over 320 million people. In correlationwith the growth of the economy, rising income levels, increased standard of living,and affordability of banking products are promising factors for continuedexpansion.


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The Indian banking Industry is in the middle of an IT revolution, focusing on theexpansion of retail and rural banking. Players are becoming increasingly customer

- centric in their approach, which has resulted in innovative methods of offeringnew banking products and services. Banks are now realizing the importance of

being a big player and are beginning to focus their attention on mergers andacquisitions to take advantage of economies of scale and/or comply with Basel IIregulation.

Indian banking industry assets are expected to reach US$1 trillion by 2010 andare poised to receive a greater infusion of foreign capital, says Prathima Rajan,analyst in Celent's banking group and author of the report. The banking industryshould focus on having a small number of large players that can compete globally

rather than having a large number of fragmented players."

UPCOMING FOREIGN BANKS IN INDIA

By 2010 few more names is going to be added in the list of foreign banks in India.

This is as an aftermath of the sudden interest shown by Reserve Bank of India

paving roadmap for foreign banks in India greater freedom in India. Among them

is the world's best private bank by Euro Money magazine, Switzerland's UBS.

The following are the list of foreign banks going to set up business in India :-

Royal Bank of Scotland

Switzerland's UBS

US-based GE Capital

Credit Suisse Group

Industrial and Commercial Bank of China


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WE UNDERSTAND YOUR WORLD

The Housing Development Finance Corporation Limited (HDFC) was amongst thefirst 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 IndianBanking Industry in 1994. The bank was incorporated in August 1994 in the nameof 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bankcommenced operations as a Scheduled Commercial Bank in January 1995.

HDFC is India's premier housing finance company and enjoys an impeccable trackrecord in India as well as in international markets. Since its inception in 1977, theCorporation has maintained a consistent and healthy growth in its operations to

remain the market leader in mortgages. Its outstanding loan portfolio covers well

over a million dwelling units.H

DFC has developed significant expertise in retailmortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. With its experience in the financialmarkets, a strong market reputation, large shareholder base and unique consumerfranchise, HDFC was ideally positioned to promote a bank in the Indianenvironment.

HDFC Bank began operations in 1995 with a simple mission: to be a WorldClass Indian Bank. We realized that only a single minded focus on productquality and service excellence would help us get there. Today, we are proud to say

that we are well on our way towards that goal.


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COMPANY PROFILE

STRONG NATIONAL NETWORK

As of March 31, 2008, the Banks distribution network was at 761 Branches and1977 ATMs in 327 cities as against 684 branches and 1,605 ATMs in 320 cities asof March 31, 2007. March 2006 March 2007 March 2008Citied 228 316 327

Branches 535 684 761ATMs 1323 1605 1977.

Against the regulatory approvals for new branches in hand, the Bank expects to

further expand the branch network by around 150 branches by June 30, 2008.During the year, the Bank stepped up retail customer acquisition with depositaccounts increasing from 6.2 million to 8.7 million and total cards issued (debit

and credit cards) increasing from 7 million to 9.2 million.

Whilst credit growth in the banking system slowed down to about 22% for the yearended 2007-08, the Banks net advances grew by 35.1% with retail advancesgrowing by 38.6% and wholesale advances growing by 30%, implying a highermarket share in both segments. The transactional banking business also registered

healthy growth With cash management volumes increased by around 80% andtrade services volumes by around 40% over the previous year. Portfolio quality asof March 31, 2008 remained healthy with gross nonperforming assets at 1.3% andnet non-performing assets at 0.4% of total customer assets. The Banks

provisioning policies for specific loan loss provisions remained higher thanregulatory requirements.


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TECHNOLOGY USED IN HDFC BANK

In the era of globalization each and every sector faced the stiff competition from

their rivals. And world also converted into the flat from the globe. After the policyof liberalization and RBI initiatives to take the step for the private sector banks,more and more changes are taking the part into it. And there are create competition

between the private sector banks and public sector bank.

Private sector banks are today used the latest technology for the differenttransaction of day to day banking life. As we know that Information Technology

plays the vital role in the each and every industry and gives the optimum returnfrom the limited resources.

Banks are service industries and today IT gives the innovative Technologyapplication to Banking industries. HDFC BANK is the leader in the industries andtoday IT and HDFC BANK together combined they reached the sky. Newtechnology changed the mind of the customers and changed the queue concept

from the history banking transaction. Today there are different channels areavailable for the banking transactions.

We can see that the how technology gives the best results in the below diagram.There are drastically changes seen in the use of Internet banking, in a year 2001(2%) and in the year 2008 (25%). This type of technology gives the freedom toretail customers.


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HDFC BANKis the very consistent player in the new private sector banks. Newprivate sector banks to withstand the competition from public sector banks cameup with innovative products and superior service.

2001

2008


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HDFC BANK PRODUCT AND CUSTOMERSEGMENTS

Loan Product Deposit Product Investment & Insurance


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BUSINESS STRETEGY

HDFC BANK mission is to be "a World Class Indian Bank", benchmarking

themselves against international standards and best practices in terms of productofferings, technology, service levels, risk management and audit & compliance.The objective is to build sound customer franchises across distinct businesses so asto be a preferred provider of banking services for target retail and wholesalecustomer segments, and to achieve a healthy growth in profitability, consistentwith the Bank's risk appetite. Bank is committed to do this while ensuring thehighest levels of ethical standards, professional integrity, corporate governance andregulatory compliance. Continue to develop new product and technology is themain business strategy of the bank. Maintain good relation with the customers is

the main and prime objective of the bank.

HDFC BANK business strategy emphasizes the following

Increase market share in Indias expanding banking and financialservices industry by following a disciplined growth strategy focusingon quality and not on quantity and delivering high quality customerservice.

Leverage our technology platform and open saleable systems todeliver more products to more customers and to control operatingcosts.

Maintain current high standards for asset quality through disciplinedcredit risk management.

Develop innovative products and services that attract the targetedcustomers and address inefficiencies in the Indian financial sector.

Continue to develop products and services that reduce banks cost offunds.

Focus on high earnings growth with low volatility.


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HUMAN RESOURCES

The Banks staffing needs continued to increase during the year particularly in the

retail banking businesses in line with the business growth. Total number ofemployees increased from 14878 as of March31, 2006 to 21477 as of March 31,2007. The Bank continues to focus on training its employees on a continuing basis,

both on the job and through training programs conducted by internal and externalfaculty.

The Bank has consistently believed that broader employee ownership of its shareshas a positive impact on its performance and employee motivation. The Banks

employee stock option scheme so far covers around 9000 employees.


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RUPEE EARNED - RUPEE SPENT

It is more important for every organization to know about from where and where to

spent money. And balanced between these two things rupee earned and rupee spentare required for smooth running of business and financial soundness. This type ofwatch can control and eliminate the unnecessary spending of business. In thisdiagram it includes both things from where Bank earned Rupee and where tospend.

HDFC BANK earned from the Interest from Advances 51.14%, Interest from

Investment 27.12 %, bank earned commission exchange and brokerage of 15.25%. These are the major earning sources of the bank. Bank also earned from theForex and Derivatives and some other Interest Income.

Bank spent 39.75 % on Interest Expense, 30.27 % on Operating Expense and 14.58% on Provision. Bank also spent Dividend and Tax on dividend, Loss onInvestment, Tax. As we discuss above that balancing is must between these two for

every organization especially in the era of globalization where there are stiffcompetition among various market players.


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RECENT DEVELOPMENT

The Reserve Bank of India has approved the scheme of amalgamation ofCenturion Bank of Punjab Ltd. with HDFC Bank Ltd. with effect from May23, 2008. All the branches of Centurion Bank ofPunjab will function as branchesofHDFC Bank with effect from May 23, 2008. With RBIs approval, all requisite

statutory and regulatory approvals for the merger have been obtained.

On March 27, 2008, the shareholders of the Bank accorded their consent to a

scheme of amalgamation of Centurion Bank ofPunjab Limited with HDFC BankLimited. The shareholders of the Bank approved the issuance of one equity shareof Rs.10/- each ofHDFC Bank Limited for every 29 equity shares of Re. 1/- eachheld in Centurion Bank ofPunjab Limited. This is subject to receipt of Approvalsfrom the Reserve Bank of India, stock exchanges and other requisite statutory andregulatory authorities. The shareholders also accorded their consent to issue equityshares and/or warrants convertible into equity shares at the rate of Rs.1, 530.13

each toHDFC Limited and/or other promoter group companies on preferential basis,subject to final regulatory approvals in this regard. The Shareholders of the Bankhave also approved an increase in the authorized capital from Rs.450 crores toRs.550 crores.


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ACHIEVEMENTS

Business Today-Monitor Group survey

One of India's "Most InnovativeCompanies"

Financial Express-Ernst & Young Award

Best Bank Award in the PrivateSector category

Global HRExcellence AwardsAsia Pacific HRM Congress:

'Employer Brand of the Year2007 -2008'Award - First Runner up, & many more

Business Today 'Best Bank' Award

Dun & Bradstreet American ExpressCorporate BestBank Award 2007

'Corporate Best Bank' Award

The Bombay StockExchange andNasscomFoundation's

Business for SocialResponsibilityAwards 2007

Best Corporate SocialResponsibility Practice' Award


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Outlook Money &NDTV Profit

Best Bank Award in the Private sectorcategory.

The Asian BankerExcellence in RetailFinancial ServicesAwards

Best Retail Bank in India

Asian Banker HDFC BANK Managing DirectorAditya Puri wins the

Leadership Achievement

Award for India


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COMPETITIVE SWOT ANALYSIS WITH ICICI BANK


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Detailed Analysis

Strength - Opportunity Analysis

I. Strength:

It is well know that ICICI Bank has the largest Authorized Capital Base in theBanking System in India i.e. having a total capacity to raise Rs. 19,000,000,000(Non Premium Value).

Opportunity:

Seeing the present financial & economic development of Indian Economy and alsothe tremendous growth of the Indian Companies including the acquisition spreefollowed by them, it clearly states the expanding market for finance requirementsand also the growth in surplus disposal income of Indian citizens has given a hugerise in savings deposits from the above point it is clear that there is a huge market

expansion possible in banking sector in India.

Strategy:

From the analysis of Strength & Opportunity the simple and straight possiblestrategy for ICICI Bank could be - to penetrate into the rural sector of India forexpanding its market share as well as leading all otherPvt. Banks from a great gap.

II. Strength - Threat Analysis

Strength:

ICICI Bank is not only known for large capital but also for having a low operationscost though having huge number of branches and services provided.


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Threat:

After showing a significant growth overall, India is able to attract many

international financial & banking institutes, which are known for their state of artworking and keeping low operation costs.

Strategy:

To ensure that ICICI Bank keeps going on with low operation cost & have

continuous business it should simply promote itself well &provide quality serviceso as to ensure customer loyalty, thereforeguaranteeing continuous business.

III. Weakness - Opportunity Analysis

Weakness:

It is well known that workforce responsiveness in banking sector is Very low inIndian banking sector, though ICICI Bank has better responsible staff but it stilllacks behind its counterparts like HSBC, HDFC BANK, CITI BANK, YES BANKetc.

Opportunity:

In the present world, India is preferred one of the best places for out sourcing ofbusiness process works and many more.

Strategy:

As international companies are reaping huge benefits after outsourcing therecustomer care & BPOs, this same strategy should be implemented by ICICI Bankso as to have proper customer service without hindering customer expectations.


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IV. Weakness - Threat Analysis

Weakness:

Though having an international presence, ICICI Bank has not been able to keep upthe international standards in providing customer service as well as banking works.

Threat:

In recent times, India has witnessed entry of many international banks like CITIBank, YES Bank etc which posses an external entrant threat to ICICI Bank asthis Banks are known for their art of working and maintain high standards of

customer service.

Strategy:

After having new entrants threat, ICICI Bank should come up with more additionalbenefits to its customer or may be even reduce some fees for any additional worksof customers.

HDFC profect

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