Report Feraral Union Bank

A Project Report On

“Customers Perception Towards The

Products and Services Offered by HDFC

Bank And Comparative Analysis”

By (RAJEEV KUMAR)

DAV INSTITUTE OF MANAGEMENT

1

A REPORT ON

“Customers Perception Towards The Products and Services Offered by HDFC Bank And Comparative

Analysis ”

BY

By (RAJEEV KUMAR)

DAV INSTITUTE OF MANAGEMENT

Under the guidance of

Mr. D. Gopala Krishna (Branch Manager, HDFC Bank, NOIDA )&

DR. sunita bishnoi (DAV institute of management)

During the Academic Year (2007-2010)

A REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF BBA(BE) PROGRAMME OF DAV INSTITUTE OF

MANAGEMENT

2

ACKNOWLEDGEMENT

It is our duty to acknowledge with gratitude the generous help that I have received from Mr. D.

Gopala Krishna Branch manager, HDFC BANK LTD.We have had the advantages of his

critical advice from his profound knowledge in Marketing (sales). He has indeed taken personal

interest in preparing an innovative Report on “Customers Perception Towards The Products

and Services Offered by HDFC Bank And Comparative Analysis” He has helped us a lot in

preparing the questionnaire.

I also want to thank Mr. E.Dheeraj who is the Relationship Manager-Corporate Salary of this

branch, my company guide for his enduring patience, valuable guidance and constant

encouragement during the course of project work.

Special thanks to Deputy Manager Mr Aswin Nayak He helped me in every step when I

required.

My sincere thanks are due to all the officers of HDFC Bank for their worthy help and

cooperation.

Finally, it’s my pleasure to acknowledge the kind help and cooperation of all the respondents of

NOIDA with whom I met throughout the duration of this project.

Head Of The Organization Mr. Gopala Krishna Branch manager, HDFC BANK

LTD.

K-Block,

Sector 18,

Noida - 201301

Uttar Pradesh

Tel 0120-4664301 / 328 / 335 /336

Fax 0120 - 2514534

Company Guide - Mr. E.Dheeraj-Relationship Manager-Corporate Salary

Faculty Guide – Dr. Sunita Bishnoi

3

(RAJEEV KUMAR)

DECLARATION

I hereby declare that this project report entitled as “CUSTOMER’S PERCEPTION

TOWARDS THE PRODUCTS AND SERVICES OFFERED BY HDFC BANK &

COMPARATIVE ANALYSIS”, submitted to, DAV Institute of Management, AU in partial

fulfillment of the requirement of BBA (BE) is a bonfire work done by me and it was not

submitted to any other university or institution previously.

(RAJEEV KUMAR)

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EXECUTIVE SUMMARY

The bases of the project was to understand the customers perception about the various schemes

like Personal loans, Home loans, Car loans under asset products and saving bank account,

Current account and Salary account under liability products for retail banking.

The project also encompasses, identifies the scope and various parameters, a customer would

look into while transacting with bank for certain scheme.

Overall analysis has been done, keeping in mind the various customer segments like

businessmen, salaried people, students and others, consideration while opting for any deposits or

borrowings.

The SWOT analysis shows the pitfalls and identifies the opportunities available for HDFC

Bank and competitor analysis has been done by considering four other close competing

commercial banks like ICICI, SBI, UTI, IDBI banks at noida, analysis has been done by taking

the profitability and performance indicator, it says there are several potentials available for

HDFC bank to be the market favorite. After the analysis it is found that the major part of the

deposits from HDFC Bank, Noida is formed by businessmen followed by salaried people and

professionals and its nearest competitors are ICICI Bank & SBI.

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CONTENTS

SI.NO DESCRIPTION PAGE NO

1 Introduction to HDFC Bank 1

2 Products & Services 32Personal Banking ּפ 33 NRI Banking ּפ 53Wholesale Banking ּפ 53

3 Market Research

Problem Definition & Objectives ּפ 59Research Methodology ּפ 59Data Analysis & Observation ּפ 61Recommendations & Limitations 81 ּפ

4 SWOT Analysis 84

5 A Comparative Study Among the Emerging 88Commercial Banks

6 Conclusion 91

7 Bibliography 93

8 Annexure 94

Questionnaire ּפ 95

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Introduction to HDFC Bank…..

HDFC BANK

HDFC Bank 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 from Housing Development Finance

Corporation Limited (HDFC), in 1994 during the period of liberalization of the banking sector

in India. HDFC India was incorporated in August 1994 in the name of 'HDFC Bank Limited'.

HDFC Bank , one amongst the firsts of the new generation, tech-savvy commercial banks of

India, was set up in august 1994 after the Reserve Bank of India allowed setting up of Banks in

the private sector

.

The Bank was promoted by the Housing Development Finance Corporation Limited, a

premier housing finance company (set up in 1977) of India. Net Profit for the year ended

March 31, 2007 was up Rs. 1,141.5 crores, up 31.1%. Headquartered in Mumbai,

HDFC Bank has a network of over 684 branches spread over 316 cities across India. All

branches are linked on an online real-time basis. Customers in over 120 locations are serviced

through Telephone Banking. The Bank also has a network of about over 1605 networked ATMs

across these cities.

History of the company

1994

The Bank was Incorporated on 30th August. A new private sector Bank promoted by

housing Development Corporation Ltd. (HDFC), a premier housing finance company. The bank

is the first of its kind to receive an in-principle approval from the RBI for establishment of a

bank in the private sector. Certificate of Commencement of Business was received on 10th

October 1994 from RBI.

8

- The Bank transacts both traditional commercial banking as well as investment banking. HDFC,

the promoter of the bank has entered into an agreement with National Westminister Bank Pc. and

its subsidiaries (Natwest Group) for subscribing 20% of the banks issued capital and providing

technical assistance in relation to the banks proposed banking business.

1995

70 No. of equity shares issued to subscribers to the Memorandum & Articles of Association on

30th August 1994. On the same date 500,00,000 equity shares were allotted to HDFC promoters.

509,20,000 shares were allotted to HDFC Employees Welfare Trust and HDFC Bank Employees

Welfare Trust on 22nd December, 1994.

- On 16.1.1995, 90,79,930 No. of equity shares were allotted to Jarrington Pvt. Ltd. Another

400,00,000 equity shares were allotted on private placement basis to Nat west Group on

9.5.1995. 500,00,000 shares were allotted to the public on 9.5.95 (all were taken up).

- The Bank opened its first branch in Ramon House at Church gate, Mumbai on January 16th.

- The Bank has created an efficient operating system using well tested state-of-the-art software.

1996

- HDFC Bank has entered the banking consortia of over 50 corporates, including some leading

multinational companies, flagship companies of local business houses and strong public sector

companies.

- HDFC Bank has set up a state-of-the-art dealing room to handle all transactions possible in

Indian financial markets.

- The Certificates of Deposits were awarded a PP1+ rating which is the highest rating for short

term instruments indicating superior capacity for repayment.

1997

- The bank is one of the largest mobilisers of retail deposits through its network of 20 branches.

Its credit deposits ratio was 53.8%.

- The bank has set up a ultra-modern hub at Powai in Mumbai where the bank's central computer

is housed. This hub housed in 35,000 square feet of space, houses data of all the branches and

facilitates the introduction of new products and services.

9

- HDFC has installed state-of-the-art systems to facilitate inter-connectivity between branches

and link up with on line system.

- The bank has also recently signed up as a depository participant, under the newly set up NSDL,

wherein the members clearing accounts settlement for dematerialized shares can be done through

the bank.

- HDFC Bank, one of the nine new-generation private sector banks, has planned to set up an all-

India on-line automated teller machine (ATM) network.

- HDFC Bank proposed to launch tele-banking for the first time in June in Mumbai at its

Chandiveli branch.

- HDFC Bank has drawn up plans to become a niche player in corporate banking by sticking to

top-rung corporate.

- HDFC Bank has become the first private sector bank to conclude a structured interest rate

option deal.

- HDFC Bank has launched its Versova branch, the 11th branch in Mumbai.

- HDFC Bank, as part of its expansion plans in the South, has opened another branch in Chennai.

- HDFC Bank has entered into strategic alliances with 10 overseas banks to provide customers

with a wide range of derivatives including interest rate and foreign currency swaps.

- HDFC Bank on October 14 introduced ATMs that converse in a regional language.

- HDFC Bank has introduced the Freedom Account for the average retail customer located in the

major metros as a means to wean away the middle-income market from nationalised banks.

- HDFC Bank has launched an account in all its 28 branches across India that seeks to free

depositors from minimum balance requirement, for the first time in the country.

- HDFC has introduced a new loan product for the payment of betterment fees announced by the

Bangalore Mahanagar Palike. - HDFC Bank is all set to launch its debit card by April 1998.

1998

- HDFC Bank has tied up with the Ahmedabad Stock Exchange (ASE) to act as its clearing bank.

- HDFC Bank proposes to strengthen its branch network in Calcutta with the addition of two new

branches in the first quarter of the next fiscal.

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- HDFC Bank has signed an agreement with the National Stock Exchange (NSE) which will give

it a second charge over the brokers deposit for providing loan against share facility to NSE

brokers.

- The bank has also entered into a similar understanding with the Bombay Stock Exchange

(BSE) whereby the bourse will provide support for recovery of money against the card for loan

against share facility.

- The bank has also entered into `Cirrus' arrangements by which all master card holders across

the globe will be able to transact at HDFC Bank in India.

- The bank will also provide phone-banking facility in Bangalore. HDFC has tied up with Visa

International to offer its Debit Card. - HDFC Bank Ltd has entered into a memorandum of

understanding for a strategic business collaboration with Chase Manhattan Bank.

- HDFC Bank has become the first bank in India to link up its automated teller machine (ATM)

network with all the three major payment systems world-wide.

- HDFC Bank will be the first bank in the Asia-Pacific region to connect the American Express

(Amex) payment system.

- The HDFC Bank is expanding its ATM network to connect to American Express Interchange

based in Phoenix, Arizona, USA. With this connectivity, HDFC Bank has become the first bank

in the Asia-pacific region to connect to the Amex Interchange.

- HDFC Bank was the first to sign up with AMEX in December of 1998.

- The Bank has tied up with ITC Thread needle Mutual Fund to provide its investors with the

High Interest Fund (HIF), a facility to en cash their units through the bank's Automated Teller

Machines in addition to a cheque book facility also to be provided by the bank.

- Sony India Ltd (SIL) has joined hands with HDFC Bank to work out an innovative car finance

package under which a Sony car audio system would be installed to a new car for no additional

upfront cash outflow.

- The bank has decided to issue 1,33,10,000 equity shares of Rs. 10 each to HDFC and a wholly-

owned subsidiary of it at a price of Rs. 94 per share.

- The bank will also issue 13,70,000 equity shares to India Private Equity Fund and 51,20,000

shares to Indocean Financial Holding, the two equity funds controlled by Chase Manhattan

Bank.

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- HDFC Bank, has tied up with BPL Ltd to offer Internet-enabled supply-chain management and

business-to-consumer (B2C) e-commerce services to corporate.

- Hutchison Max Telecom and HDFC Bank introduced the country's first-ever mobile-banking

services in the city.

2000

HDFC Bank also signed a memorandum of understanding with Singapore Telecom's e-

commerce arm Sesami.Com Pvt Ltd. - The Bank latter also entered into a partnership agreement

with National Computer Systems, the e-commerce unit of Singtel.

- A new company called SESAMi.com (India) has been formed by a strategic alliance between

HDFC Bank and Singapore Telecom's e-commerce company SESAMi.com, to offer e-commerce

solutions for the Indian market.

- HDFC Bank has a tie-up with Maxtouch for giving the facility to the latter's customers in

Mumbai. This is the first and only service of this sort in the country, he said.

- HDFC Bank is also launching an online electronic banking solution called Enet which will

allow corporate to access their accounts over the net and carry out trade related transactions and

cash management functions.

- HDFC Bank entered into a tie-up with Telco by which the bank would provide preferential

financing options for Tata's range of passenger cars including the Indica, Sumo, Safari, Estate

and Sierra.

- HDFC Bank allotted 1.98 crore shares of Rs 10 each at an issue price of Rs 94 per share to

promoters and strategic investors on March 29.

- HDFC Bank is also set to become the first bank in the country to offer wireless application

protocol (WAP) services to customers.

Sky Cell Communications Ltd, one of the two cellular service providers in Chennai, has

launched `Sky Banking', for which the company has tied up with ICICI Bank and HDFC Bank.

- The bank has tied up with 12 utility companies nationwide including BSES, MSEB, BEST,

Orange, BPL and MTNL.

- The Bank has tied up with financial portals, e-brokerages and the National Stock Exchange to

enable broker payments for e-broking ventures. - The Bank has set up 100 new electronic data

capture (EDC) terminals in Mumbai. - HDFC Bank has launched its first B2C payment gateway

which allows Visa and MasterCard credit card-holders to do transaction online and real time. -

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CYBERITMALL.COM has joined hands with HDFC Bank to provide VISA/MasterCard users

with an online payment gateway solution to enable them to have a secure shopping experience. -

HDFC Bank plans to extend its mobile phone banking services introduced in select metros to

mobile phone broking when it introduces its Internet on-line trading in July. - HDFC Bank and

portal clickforsteel.com have signed a memorandum of understanding for offering online credit

and services to facilitate `post transaction' activities through the portal's `allied services

providers' programme. - Indianfoline.com signed an agreement with HDFC bank for the use of

payment gateway to enable online financial transactions.

- HDFC Bank, in association with cellular service provider Orange, has launched the entire range

of mobile banking services and mobile commerce services using wireless application protocol

(WAP) technology.

- The Company has introduced a new scheme whereby it will provide loans to individuals for

payment of self assessment tax on their properties in Bangalore.

- The Foreign Investment Promotion Board has cleared the proposal of the HDFC Group to enter

into a joint venture with Singapore Telecom's e-commerce company for providing a

comprehensive range of business-to-business e-commerce solutions to companies in India.

- The Company proposes to pick up an equity stake in Softcell Trade and Technologies Ltd., a

Mumbai-based software company.

- BPL Mobile has tied up with HDFC Bank to offer Internet banking through the mobile phone.

- HDFC Bank launched `Instant Car Loans' a new scheme for offering customers a range of net-

enabled loan products.

- HDFC Bank launched depository services on the net.

- HDFC Bank tied up with NSE.IT, a wholly owned subsidiary of the National Stock Exchange,

for providing payment gateway services for the latter's Internet trading operations.

- HDFC Bank has been identified as the best domestic commercial bank for the second

consecutive year by FinanceAsia.com, which provides a network for financial decision makers.

- The Mumbai-based Geojit Securities Ltd. has tied up with HDFC Bank for Internet trading of

shares.

- Calcutta's cellular services provider Modi Telstra, and HDFC Bank have entered into a

collaboration to provide mobile commerce in Calcutta.

13

- HDFC Bank has got the Kerala-based Nedungadi Bank as its first customer for its new joint

venture company with I-Flex Solutions.

- HDFC Bank has set a target of attaining a business of over Rs 15,000 crore this fiscal mainly

through expansion and new product launches, including a credit card.

- HDFC Bank, in association with Tata Cellular, has launched Mobile Commerce Service, for

customers in Hyderabad and Vishakaptnam.

- HDFC Bank has tied up with about 25 equity brokerages for enabling third party transfer of

funds and securities through its business-to-business portal -- `e-Net'.

- The Bank has entered into an alliance with Deloitte Haskins and Sells, a member firm of

Deloitte and Touch, to offer banking services to its non-resident Indian customers.

- HDFC Bank has launched its 123rd outlet at Delhi Stock Exchange building at Asaf Ali Road.

- The Bank proposes to acquire up to 24.5 per cent stake in the MIEL e-Security Pvt. Ltd., which

is engaged in the business of developing and marketing of security products and services for a

range of e-commerce and enterprises security applications.

- The Bank has tied up with Rajan Raheja-owned Hathway for providing banking at home as part

of the Net-over-cable initiative of the latter in Mumbai. - HDFC Bank launched its on-line bill

payment facility in alliance with the Maharashtra State Electricity Board has also begun to offer

bridge loans against fixed deposits of parent Housing Development Finance Corporation the

financial institution.

- HDFC Bank has tied up with portal brainvisa.com to retail education loans to students. - The

Gujarat Cellular operator Fascel, has signed up with the HDFC Bank to introduce mobile

commerce for the first time in the State.

- HDFC Bank has tied up with BPL Mobile for mobile commerce facility.

- CricketNext.com, a sports e-commerce site has tied up with HDFC Bank to provide an on-line

payment gateways and marketing opportunities for a wide range of cricket sports gear on its on-

line shop BatNext.

- Singapore-based Growasia.com has entered into an understanding with HDFC Bank and credit

rating agency Icra, for picking up equity in the company's Indian subsidiary Gasia.com.

- The Bank has launched `Freedom - The e-Age Savings Account' for cellular phone users.

- Spice Cell has tied up with Citibank N A, HDFC Bank and ICICI Bank for mobile bill

settlements.

14

- HDFC Bank and Cosmos Bank launched a co-branded ATM card.

- The Chatterjee Group-promoted Captech Online Ltd. has signed memorandum of

understanding with HDFC Bank and UTI Bank for setting up a payment gateway for its debt

negotiation platform, Riskxpress.com.

- HDFC Securities Ltd., promoted by the HDFC group with equity participation from the

Housing Development Finance Corporation Ltd., HDFC Bank and Chase Capital Partners, has

launched its brokerage services for retail investors in the Capital.

- The HDFC Bank and Airtel launched their mobile-banking service through WAP in Delhi.

- HDFC Bank has launched wireless application protocol-based mobile-banking in Coimbatore

and Trichy in association with Aircel.

2001

- The Bank has opened its first branch in Aurangabad.

- HDFC Standard Life Insurance has entered into a memorandum of understanding with the

Chennai-based Indian Bank.

- The Bank has launched the international Maestro debit card in association with Master Card.

- HDFC Bank will launch its credit card in June through link-ups with MasterCard and Visa.

- LTtrade.com has entered into a strategic tie-up with HDFC Bank to provide Net banking

services to online investors.

- Standard Chartered Bank, HDFC Bank and Bharat Petroleum Corporation have joined the

eCash Forum which has been set up by the Smart Card Forum of India.

- HDFC Bank has launched a new campaign for its eage savings account.

- HDFC Bank entered into a strategic tie-up with Tally Solutions Pvt. Ltd. to offer online real

time accounting services to small and medium enterprises.

- The Bank has opened four ATMs outlets in Bangalore at Coles Road, RT Nagar, Rajaji Nagar

and Jaya Nagar on March 26.

- HDFC Standard Life Insurance has launched a `Development Insurance Plan' a low cost life

insurance product developed specifically to meet the needs of economically weaker sections.

- Two Directors, Mr. S.S. Thakur and Mr. Amit Judge, have resigned from the board of the bank

effective from March 30.

- HDFC Bank files with US regulators to list more than 11 million American Depositary Shares

on the New York Stock Exchange.

15

2002

- HDFC Bank unveiled a new online account aggregation service `OneView'.

- HDFC launched 'One View' service to customers

- HDFC Bank launched its 9th branch in Karnataka.

- HDFC opens its branch in Mangalore.

- HDFC Bank unveils Silver card in Hyderabad.

- HDFC Bank opens first overseas representative office.

- HDFC Bank unveils gold card

- Mediclaim facilities to HDFC Bank gold cardholders.

- HDFC Bank Ltd has informed BSE that Mr Deepak Satwalekar has submitted his resignation

as Director of the Bank. The Board of Directors has accepted the same. The Board of Directors

has co-opted Mrs Renu Karnad as Additional Director of the Bank.

- Mrs. Renu Karnad has been co-opted as an Additional Director of the Bank. Mrs Karnad shall

represent the promoters of the bank i.e. HDFC Ltd. Also Mr. Deepak Satwalekar, Managing

Director of HDFC Standard Life Insurance Company Ltd, has been on the Board of the Bank as

nominee of HDFC Ltd since September 12, 1994 and shall complete the period of 8 yrs before

the next scheduled board meeting. In view of the provisions of the Banking Regulation Act,

1949, Mr. Satwalekar has submitted his resignation as Director of the Bank and the Board has

accepted the same.

- HDFC Bank launched new products to its wealth management programme to increase its

customer base. The bank introduced a non-interactive product named "Financial Planner", which

would be available for all its customers for an annual fee starting from Rs 10,000. The bank is

offering fee based advisory programme to the "mass affluent" segment, which was earlier offered

to high net worth customers. The wealth management programme would cater to individual

needs taking into account various factors such as customer's age, financial goals and risk profile,

which includes equity, MFs and debt instruments such as RBI Relief Bonds.

- Orange JV with HDFC Bank.

2003

- HDFC Bank unveils resident foreign currency account.

- HDFC Bank unveils co-branded credit card with e-Seva.

16

- The Board of Directors of HDFC Bank Ltd at their meeting held on January 15, 2003 approved

the appointment of Mr. Arvind Pande as an Additional Director pursuant to section 260 of the

Companies Act, 1956.

- EPFO JV with HDFC Bank for its pension distribution.

- HDFC enters into agreement with HDFC Bank to source housing loans.

- HDFC Bank, IRCTC in tie up for online railway booking.

- HDFC Bank inks pact with ANB for remittance service

- HDFC Bank introduces 'HDFC Bank Health Plus Credit Card'.

- Uma Krishnan resigns HDFC Bank as country head.

- Escotel ties up with HDFC Bank for Global Debit Card.

- HDFC Bank launches India's first mobile payment solution.

- HDFC Bank's debt programme of Rs 400-crore has received triple A (ind) rating from CREDIT

rating agency FITCH.

-Mumbai - HDFC Bank in collaboration with Tally Solutions is planning to launch electronic

data interchange (EDI) system for small and medium enterprises (SMEs).

-Warburg Pincus sells 2% stake in HDFC for Rs 235 cr

- HDFC Bank began selling home loans of its promoter Housing Development Finance

Corporation (HDFC).

-Board approved to allot 4,16,400 equity shares to the employees of the Bank under the

Employee Stock Option Scheme

2004

-Mr Ranjan Kapur & Mr Bobby Parikh appointed as Additional Directors

-NMCE inks pact with HDFC Bank for warehouse receipts

- HDFC Bank has entered into an alliance with Clearing Corporation of India Ltd (CCIL). The

tie-up offers the latter's collateral borrowing and lending obligation (CBLO) product to

cooperative banks that are not direct members of the negotiated dealing system (NDS).

-HDFC Bank repurchases HDFC loans worth Rs 208 cr

-Launches Quickremit, a unique online service that enables NRIs in the US to send money to

their relatives in India from the comfort of their homes.

-Andhra Bank has entered into an alliance with HDFC Bank for sharing its network of automated

teller machines (ATMs). On March 29, 2004

17

- HDFC Bank and Bahraini Saudi Bank (BSB) have announced an alliance to cater to service the

needs of the non-resident Indians (NRIs) in Bahrain.

- HDFC bank Ltd has informed that Dr (Mrs) Amla Samanta has ceased to be a director of the

Bank with effect to April 25, 2004.

- HDFC Bank launches new scheme for Maruti 800 buyers, providing 85 per cent finance on the

on-road price of the car for seven years.

-HDFC Bank wins Asia money award for Best Domestic Bank

-HDFC Bank managing director Aditya Puri has been awarded the management man of the year

by the Bombay Management Association (BMA)

-HDFC Bank has entered into an agreement with Shrachi Securities Ltd, the flagship company of

the Kolkata-based Rs 300-crore Shrachi Group, for financing of multi-utility vehicles all over

India

-HDFC Bank has launched an online bill payment facility for its customers who are also

subscribers to Tata Teleservices

-HDFC Bank join hands with NCR Corporation to offer managed ATM services

- IKF Finance Ltd has entered in to a Joint Lending Arrangement with HDFC Bank Ltd

2005

-TMB forges alliance with HDFC Bank

-HDFC Bank inaugurates first ATM in Hotel

- HDFC Bank ties up with the International Bank of Qatar (IBQ) to launch banking services in

Qatar.

- HDFC Bank launches loyalty rewards programme for its debit and credit cardholders under the

name InstaWonderz.

-HDFC Bank along with MasterCard International launched credit card targeted at small and

medium-sized enterprises

-HDFC Bank has tied up with US-based WL Ross and company LLC for investing in corporate

restructuring

-HDFC Bank unveils credit card for farmers

2006

18

-HDFC sets up two more branches in AP

2007

-HDFC Bank has signed an agreement with Tata Pipes to offer credit facilities to farmers across

the country.

-Hdfc Bank Ltd has appointed Mr. Pandit Palande as an additional Director of the Bank at the

Board Meeting held today i.e. on 24th April 2007.

- HDFC Bank Ltd has informed that the Board of Directors of the Bank at its meeting held on

October 12, 2007, has been appointed Mr. Paresh Sukthankar & Mr. Harish Engineer as

Executive Directors on the Board of Directors of the bank. Mr. Sukthankar & Mr. Engineer have

been senior employees of the Bank since 1994 and have held various positions of responsibility

Organizational Structure

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Chairperson (Jagdish Capoor)

Director(Keki

Mistry)

Director(Vineet

Jain)

Director(Gautam Divan)

Director(C.M

Vasudev)

Director(Arvind Pande)

Director(Pandit

Palande)

Managing Director(Aditya

Puri)

Executive director(Paresh Sukthankar)

Executive director(Harish Engineer )

PROMOTER

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 1977, the Corporation 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. 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 market reputation, large shareholder base and unique consumer 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 objective is to build sound

customer franchises across distinct businesses so as to be the preferred provider of banking

services for target retail and wholesale customer segments, 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, corporate governance and regulatory

compliance. HDFC Bank's business philosophy is based on four core values - Operational

Excellence, Customer Focus, Product Leadership and People.

TIMES BANK AMALGAMATION

In a milestone transaction in the 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 shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank

20

received 1 share of HDFC Bank for every 5.75 shares of Times Bank. The acquisition added

significant value to HDFC Bank in terms of increased branch network, expanded geographic

reach, enhanced customer base, skilled manpower and the opportunity to cross-sell and leverage

alternative delivery channels.

TECHNOLOGY

HDFC Bank operates in a highly automated environment in terms of information technology and

communication systems. All the bank's branches have online connectivity, which enables the

bank to offer speedy funds transfer facilities 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. In terms of software, the

Corporate Banking business is supported by Flexcube, while the Retail Banking business by

Finware, both from i-flex Solutions Ltd. The systems are open, scaleable and web-enabled.

The Bank has prioritised its engagement in technology and the internet as one of its key goals

and has already made significant progress in web-enabling its core businesses. In each of its

businesses, the Bank has succeeded in leveraging its market position, expertise and technology to

create a competitive advantage and build market share.

DISTRIBUTION NETWORK

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over

593 branches spread over 263 cities across India. All branches are linked on an online real-time

basis. Customers in over 120 locations are also serviced through Telephone Banking. The Bank's

expansion plans take into account the need to have a presence in all major industrial and

commercial centres where its corporate customers are located as well as the need to build a

strong retail customer base for both deposits and loan products. Being a clearing/settlement bank

21

to various leading stock exchanges, the Bank has branches in the centres where the NSE/BSE

have a strong and active member base.

The Bank also has a network of about over 1131 networked ATMs across these cities. Moreover,

HDFC Bank's ATM network can be accessed by all domestic and international Visa/MasterCard,

Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.

BUSINESSES

HDFC Bank offers a wide range of commercial and transactional banking services and treasury

products to wholesale and retail customers. The bank has three key business segments:

Wholesale Banking Services

The Bank's target market ranges from large, blue-chip manufacturing companies in the Indian

corporate to small & mid-sized corporate and agri-based businesses. For these customers, 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 structured solutions, which combine cash management services with

vendor 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 inroads into the banking consortia of a number of

leading Indian corporate including multinationals, companies from the domestic business houses

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 banks.

Retail Banking Services

The objective of the Retail Bank is to provide its target market customers a full range of financial

products and banking services, giving the customer a one-stop window for all his/her banking

requirements. The products are backed by world-class service and delivered to the customers

through the growing branch network, as well as through alternative delivery channels like

22

ATMs, Phone Banking, Net-Banking and Mobile Banking.

The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and the

Investment Advisory Services programs have been designed keeping in mind needs of customers

who seek distinct financial solutions, information and advice on various investment avenues. The

Bank also has a wide array of retail loan products including Auto Loans, Loans against

marketable securities, Personal Loans and Loans for Two-wheelers. It is also a leading provider

of Depository Participant (DP) services for retail customers, providing 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 Electron) and issues the Mastercard Maestro debit card as well. The Bank launched

its credit card business in late 2001. By September 30, 2005, the bank had a total card base (debit

and credit cards) of 5.2 million cards. The Bank is also one of the leading players in the

"merchant acquiring" business with over 50,000 Point-of-sale (POS) terminals for debit / credit

cards acceptance at merchant establish.

Treasury

Within this business, the bank has three main product areas - Foreign Exchange and Derivatives,

Local Currency Money Market & Debt Securities, and Equities. With the liberalization of the

financial markets in India, corporates need more sophisticated risk management information,

advice and product structures. These and fine pricing on various treasury products are provided

through the bank's Treasury team. To comply with statutory reserve requirements, the bank is

required to hold 25% of its deposits in government securities. The Treasury business is

responsible for managing the returns and market risk on this investment portfolio.

AWARDS and ACHIEVEMENTS- BANKING SERVICES

HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian

Bank". We realized that only a single-minded focus on product quality and service excellence

would help us get there. Today, we are proud to say that we are well on our way towards that

23

goal. The Asset magazine named HDFC Bank "Best Cash Management Bank" and "Best

Trade Finance Bank" in India, in 2006.HDFC Bank named the "Most Customer Responsive

Company - Banking and Financial Services in The Economic Times - Avaya Global

Connect Customer Responsiveness Awards 2005". HDFC Bank has been named Best

Domestic Bank in India in The Asset Triple A Country Awards 2005. In 2004, HDFC Bank

was selected by Business World as "One of India's Most Respected Companies" as part of

The Business World Most Respected Company Awards 2004. In 2004, HDFC Bank won the

award for "Operational Excellence in Retail Financial Services" - India as part of the Asian

Banker Awards 2003.

Asia money AWARDS :

2006

Business Today Best Bank in India.

Forbes Magazine One of Asia Pacific's Best 50 companies.

Business world Best listed Bank of India.

The Asset

Magazine's Triple A

Country Awards

Best Domestic Bank.

Asia money Awards Best Local Cash Management Bank in Large and Medium segments.

Euro money

Awards

"Best Bank" in India.

CREDIT RATING

HDFC Bank has its deposit programmes 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 Investmentrisk".

24

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 "tAAA ( 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".

HDFC Bank also has its long term unsecured, subordinated (Tier II) Bonds of Rs.4 billion rated

by CARE and Fitch Ratings India Private Limited. CARE has assigned the rating of "CARE

AAA" for the Tier II Bonds while Fitch Ratings India Pvt. Ltd. has assigned the rating

"AAA( ind )" with the outlook on the rating as "stable". 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 among 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.We are aware that all these awards are mere

milestones in the continuing, never-ending journey of providing excellent service to our

customers. We are confident, however, that with your feedback and support, we will be able to

maintain and improve our services.

Annual Balance Sheet

Fiscal Year End for HDFC BANK LTD falls in the month of March.

All items in Millions except Per Share data.

  03/31/08 03/31/07 03/31/06 03/31/05 03/31/04

25

Assets

Cash & Equivalents -96,304.42 1,968.20 1,536.40 1,090.20 1,220.30

Receivables 0 12,818.50 9,081.30 5,992.60 4,190.30

Notes Receivable 0 0 0 0 0

Inventories 0 0 0 0 0

Other Current Assets 0 297.40 0 0 82.10

Total Current Assets 3,694.58 15,084.10 10,617.70 7,082.80 5,492.70

Net Property & Equipment 293.78 241.20 195.90 162.40 142.10

Investments & Advances 28,205.11 7,059 6,147.90 4,683.50 4,052.40

Other Non-Current Assets 0 0 0 0 0

Deferred Charges 0 0 0 0 0

Intangibles 0 0 0 0 0

Deposits & Other Assets 1,100.60 1,123.40 821.10 209.20 147.70

Total Assets 33,294.15 23,507.70 17,782.60 12,137.90 9,834.90

Liabilities & Shareholder's Equity

Notes Payable 0 2,458.70 1,701.40 1,423.20 554.50

Accounts Payable 25,192.15 15,831.70 12,529.30 8,334.30 7,006

Current Portion Long-Term Debt 0 0 0 0 0

Current Portion Capital Leases 0 0 0 0 0

Accrued Expenses 0 2,910.30 1,921.50 1,134 1,414.90

Income Taxes Payable 0 0 0 0 0

Other Current Liabilities 0 0 0 0 0

Total Current Liabilities 25,192.15 21,200.70 16,152.20 10,891.50 8,975.40

Mortgages 0 0 0 0 0

Deferred Taxes/Income 0 0 0 0 0

Convertible Debt 0 0 0 0 0

26

Long-Term Debt 1,119.71 779.60 382.80 115.30 140.20

Non-Current Capital Leases 0 0 0 0 0

Other Non-Current Liabilities 4,107.97 0 0 0 0

Minority Interest (Liabilities) 0 7.50 5 0 0

Total Liabilities 30,419.84 21,987.80 16,540 11,006.80 9,115.60

Shareholder's Equity

Preferred Stock 0 0 0 0 0

Common Stock (Par) 0 74.10 70.40 71 65.20

Capital Surplus 88.60 701.30 602.60 591.20 288.60

Retained Earnings 2,785.70 568.50 411.10 295.10 208.70

Other Equity 0 176 158.50 173.80 156.80

Treasury Stock 0 0 0 0 0

Total Shareholder's Equity 2,874.30 1,519.90 1,242.60 1,131.10 719.30

Total Liabilities & Shareholder's Equity 33,294.15 23,507.70 17,782.60 12,137.90 9,834.90

Total Common Equity 102,873.30 1,519.90 1,242.60 1,131.10 719.30

Shares Outstanding 117.80 106.40 103.20 103.20 94.20

Book Value Per Share 873.29 14.28 12.04 10.96 7.64

27

28

Mar ' 08 Mar '

07 Mar ' 06 

Mar '

05 Mar ' 04 

Income :           

Operating

Income  12,354.41  8,303.34  5,567.67  3,723.86

 2,970.1

5

Expenses           

Financial

Expenses  4,887.12  3,179.45  1,929.50  1,315.56

 1,211.0

5

Personnel

Expenses  1,301.35  776.86  486.82  276.67  204.09

Selling

Expenses  114.73  74.88  80.85  54.95  37.06

Adminstrative

Expenses  2,247.48  1,519.32  1,424.59  785.93  621.41

Expenses

Capitalised  0.00  0.00  0.00  0.00  0.00

Operating

Expenditure  8,550.68  5,550.51  3,921.76  2,433.11

 2,073.6

1

Operating

Profit  3,803.73  2,752.83  1,645.91  1,290.75  896.54

Other

Recurring

Income 

 43.04  102.96  31.38  20.76  59.26

Adjusted

PBDIT  3,846.77  2,855.79  1,677.29  1,311.51  955.80

Provisions

Made  1,294.67  754.90  0.00  0.00  16.70

Depreciation   271.72  219.60  178.59  144.07  125.72

Other Write

offs  0.00  241.09  245.16  188.06  93.22

Earnigs

Before

Appropriation 

 3,522.15  2,596.12  1,473.12  1,070.62  865.63

Equity

The reportable primary segments have been identified in accordance with the Accounting

Standard on Segment. Reporting (AS-17) issued by the Institute of Chartered Accountants of

India (ICAI).

The Bank operates in three segments: retail banking, wholesale banking and treasury services.

Segments have been identified and reported taking into account, the target customer profile, the

nature of products and services, the differing risks and returns, the organization structure and the

internal business reporting systems.

NOTES:

1. The above results have been approved by the Board at its meeting held on January 11, 2008

2. During the quarter and the nine months ended December 31, 2007, the Bank allotted 774,600

shares and 2,007,000 shares respectively pursuant to the exercise of stock options by certain

employees.

3. During the quarter ended December 31, 2007, the bank granted 3586500 stock options under

its scheme titled “ESOS VIII” and 3046800 stock options under its scheme titled “ESOS IX” to

its employees. The grant price of these options is Rs. 994.85, being the closing market price as

on the working day immediately preceding the date of grant of options.

4. Other income relates to income from non-fund based banking activities including commission,

fees, foreign exchange earnings, earnings from derivative transactions and profit and loss

(including revaluation) from investments.

5. Provision for Taxes includes Rs. 375 lacs and Rs. 1200 lacs towards provision for fringe

benefit tax (FBT) for the quarter and the nine months ended December 31, 2007, respectively.

29

Mar ' 08 Mar '

07 Mar ' 06 

Mar '

05 Mar ' 04 

Income :           

Operating

Income  12,354.41  8,303.34  5,567.67  3,723.86

 2,970.1

5

Expenses           

Financial

Expenses  4,887.12  3,179.45  1,929.50  1,315.56

 1,211.0

5

Personnel

Expenses  1,301.35  776.86  486.82  276.67  204.09

Selling

Expenses  114.73  74.88  80.85  54.95  37.06

Adminstrative

Expenses  2,247.48  1,519.32  1,424.59  785.93  621.41

Expenses

Capitalised  0.00  0.00  0.00  0.00  0.00

Operating

Expenditure  8,550.68  5,550.51  3,921.76  2,433.11

 2,073.6

1

Operating

Profit  3,803.73  2,752.83  1,645.91  1,290.75  896.54

Other

Recurring

Income 

 43.04  102.96  31.38  20.76  59.26

Adjusted

PBDIT  3,846.77  2,855.79  1,677.29  1,311.51  955.80

Provisions

Made  1,294.67  754.90  0.00  0.00  16.70

Depreciation   271.72  219.60  178.59  144.07  125.72

Other Write

offs  0.00  241.09  245.16  188.06  93.22

Earnigs

Before

Appropriation 

 3,522.15  2,596.12  1,473.12  1,070.62  865.63

Equity

6. During the quarter ended December 31, 2006, the Bank raised Rs. 47850 lacs as Upper Tier II

capital in the form of subordinated bonds.

7. As on December 31, 2007, the total number of branches (including extension counters) and the

ATM network stood at 583 branches and 1471 ATMs respectively.

8. Previous period figures have been regrouped/reclassified wherever necessary to conform to

current period's classification.

9. The above results for the quarter and the nine months ended December 31, 2007, have been

subjected to a “Limited Review” by the auditors of the Bank, as per the listing agreements with

Bombay Stock Exchange Limited and The National Stock Exchange of India Limited.

Share holding pattern

Share Holding Pattern as on

: 31/03/2008  31/12/2007  30/09/2007

Face Value  10.00  10.00  10.00

 No. Of

Shares

%

Holdin

g

No. Of

Shares

%

Holdin

g

No. Of

Shares

%

Holdin

g

PROMOTER'S HOLDING

Indian Promoters 8244300

0 23.26

 8244300

0 23.28  82443000  23.33

Sub Total  82443000  23.26  82443000  23.28  82443000  23.33

NON PROMOTER'S HOLDING

Institutional Investors

Mutual Funds and UTI  9836118  2.78 1198597

6 3.39  14521101  4.11

Banks Fin. Inst. and

Insurance

 1066123

5 3.01

 1006893

9 2.84  9509009  2.69

30

FII's 9176586

8 25.89

 9408761

9 26.57  91188180  25.80

Sub Total 11226322

1 31.67

 11614253

4 32.80

 11521829

0 32.60

Other Investors

Private Corporate Bodies 3138913

5 8.86

 2859823

4 8.08  28877678  8.17

NRI's/OCB's/Foreign Others  6302275  1.78  6019811  1.70  6039388  1.71

Government  6091527  1.72  3841342  1.08  2638101  0.75

Others 7659550

8 21.61

 7811001

9 22.06  78996570  22.35

Sub Total 12037844

5 33.96

 11656940

6 32.92

 11655173

7 32.98

General Public 3934825

4 11.10

 3892038

0 10.99  39238893  11.10

GRAND TOTAL 35443292

0 100.00

 35407532

0 100.00

 35345192

0 100.00

Capital Structure

From

Year

To

Year

Class Of

Share

Authorize

d Capital

(Crores)

Issued

Capital

(Crores)

Paid Up

Shares

(Nos)

Paid Up

Face

Value

Paid Up

Capital

(Crores)

2007 2008Equity

Share550.00 354.43

35443292

010 354.43

2006 2007Equity

Share450.00 319.39

31938960

810 319.39

2005 2006Equity

Share450.00 313.14

31314240

810 313.14

2004 2005Equity

Share450.00 309.88

30987530

810 309.88

31

2003 2004Equity

Share450.00 284.79

28479171

310 284.79

2002 2003Equity

Share450.00 282.05

28204571

310 282.05

2001 2002Equity

Share450.00 281.37

28137461

310 281.37

2000 2001Equity

Share300.00 243.60

24359626

110 243.60

1999 2000Equity

Share300.00 243.28

24327826

110 243.28

1995 1999Equity

Share300.00 200.00

20000000

010 200.00

1994 1995Equity

Share300.00 110.00

11000000

010 110.00

32

PERSONAL BANKING

SAVINGS ACCOUNT

1) Regular savings a/c:

33

Products & Services….

An easy-to-operate savings account that allows you to issue cheques, draw Demand Drafts and

withdraw cash. Check up on your balances from the comfort of your home or office through Net

Banking, Phone Banking and Mobile Banking .

Features & benefits

Wide network of branches and over thousand ATMs to meet all your banking needs no

matter where you are located.

Bank conveniently with facilities like Net Banking and Mobile Banking- check your

account balance, pay utility bills or stop cheque payment, through SMS.

Never overspend- Shop using your International Debit Card that reflects the actual

balance in your savings account.

Avail of facilities like Safe Deposit Locker, Sweep-In and Super Saver facility on your

account.

2) Retail Trust a/c:

The Retail Trust Account is beneficial for Trusts and Societies as it earns them a higher

interest as compared to a conventional Current Account that offers no interest.

Features & benefits

Avail of Free Outstation Cheque Collection at HDFC Bank locations across the country.

Enjoy free DD's payable on HDFC bank locations up to a limit of Rs. 50,000/- per DD,

per day.

Payable at Par Cheque facility: At a nominal cost, you can avail a PAP cheque book of 25

leaves (Regular non-PAP cheque book come free of cost).

Avail of Special discounts on Foreign exchange transactions and Forex rates at most

branches across the country.

34

Structured Investment Program: Avail of the facility for investing surplus funds lying in

your account into Mutual Funds, RBI Bonds and other financial instruments through any

of our branches across the country.

3) SALARY ACCOUNT

a) Payroll salary a/c:

Features & benefits

Nil Interest payout on account balance

Free Payroll Debit Card - (max cash withdrawal at ATMs- Rs 15,000/- and Rs 25,000 at

shopping avenues)

BillPay facility at Rs 25/- (plus taxes) per qtr. per Customer ID.

Up to 6 free ATM cash withdrawal transactions; thereafter Rs. 30/- per transaction.

Cheque book issuance @ charge of Rs.5 per leaf (only on request and this is not a

standard offering )

b) Classic salary a/c:

Features & benefits

Zero Balance Account

Free personalised cheque books.

Free ATM Card with a withdrawal limit of up to Rs. 10,000/- per day.

Free facilities like Net Banking, Phone Banking and Mobile Banking.

c) Regular salary a/c:

35

Features & benefits

No minimum balance required.

Free International Debit card with ATM cash withdrawal limit of up to Rs. 15,000

and Rs. 25,000 (non-cash) at shopping avenues.

Free issuance of Demand Drafts up to Rs. 25,000 per instrument, payable at branches

within the HDFC Banking network.

Preferential rates on loan products offered by the bank.

Preferential rates on forex transactions.

d) Premium salary a/c:

Features & benefits

Free International Debit Card and Add-on Debit card for life.

Free Personal Insurance Accident cover up to Rs. 2,00,000/- on the Debit card.

Free Debit card withdrawals - max cash withdrawal at ATMs- Rs 25,000/- and Rs

50,000 (non-cash) at shopping avenues.

Preferential rates for Gold and Silver credit cards.

Free Demand Drafts up to Rs. 25,000 per instrument, per instrument payable at

branches within the HDFC Banking network.

Free BillPay and Insta Alert facility.

e) Defence salary a/c:

Features & benefits

The Defence Salary Account is a Zero Balance account.

Enjoy facilities like NetBanking, PhoneBanking, MobileBanking, BillPay, ATM facility,

and inter-branch banking.

Enjoy preferential rates on Loans Against Shares, New Car Loans and Used Car Loans,

Consumer Loans and Personal Loans.

36

4)Kid’s Advantage Account:

Features & benefits

Automatically increases the balance in your Kids Advantage Account by transferring a

fixed sum from your Savings Account every month.

Amounts in excess of Rs. 5,000/- over and above a balance of Rs. 10,000/- gets converted

into Fixed Deposits for a specified period in your child's name.

Free International Debit Card for your child (above 7 years of age) with a maximum

drawing capability of Rs. 2,500/- per day.

Free Education Insurance cover of up to Rs. 1,00,000/- for your child with every Kids

Advantage Account

5)PENSION SAVING ACCOUNT:

Features & benefits

The Pension Saving account is a Zero Balance Account.

Timely credit of receivables

Free International Debit Card.

Enjoy facilities such as NetBanking, PhoneBanking, BillPay, ATM facility, inter-city and

inter-branch banking.

Pension Accounts are transferable from one branch/bank to another.

6)FAMILY SAVINGS ACCOUNT:

Features & benefits

All account holders can operate their account freely without worrying about their

minimum balance.

Family members with NRI status can also be part of the group.

Get 5 Free Cash withdrawal transactions on SBI ATMs per group per month.

Upto 2 free DD's/ MC's on HDFC Bank locations per account per month (max. up to Rs.

25,000/- per instrument per day).

Free International Debit Card for all account holders till the account is part of the Family

group. (NRO Accounts will be issued only ATM cards)

37

Free BillPay & InstaAlerts facility for all account holders till the account is part of the

Family Group.

Free Standing Instructions for investment into Mutual Funds

Free OneView to access all your accounts.

Free MobileBanking, NetBanking & PhoneBanking.

Enjoy a Savings account to Savings acount sweep-in to a nominated account (sweep-in to

NRE accounts not permitted from resident / NRO accounts).

CURRENT ACCOUNT:

1) Plus Current a/c:

In today's fast-paced world, your business regularly requires you to receive and send funds to

various cities in the country. HDFC Bank Plus Current Account gives you the power of inter-

city banking with a single account and access to more than 220 cities.

Features & benefits

Free outstation cheque collection (non HDFC Bank location cheques will incur a

nominal charge).

Free limited NetBanking for checking balances in accounts.Full fledged Net Banking

can be availed of after completion of certain formalities.

FREE Demand Drafts (without any limit) payable at Mumbai, Delhi, Kolkata, Chennai,

Ahmedabad, Bangalore, Hyderabad, Trivandrum, Chandigarh, Bhopal, Nagpur, Jaipur,

Bhubaneshwar, Kanpur, Patna & Guwahati. At all other HDFC Bank Branch locations,

Demand Drafts will be issued Free up to a total of Rs.50 lacs per month, incremental to

be charged @ Rs.0.25 per Rs.1,000, minimum Rs.25/-, maximum Rs.5,000.

These drafts are available free only from the Home Branch

Free Funds Transfer- Huge savings!

You can transfer funds absolutely FREE across all locations, except Dahej, in the HDFC

Bank network upto a total value of Rs.100 lakhs per month.

any incremental amount above Rs.100 lakhs will be charged @ Rs. 0.50 /Rs.1000.

38

Easy cash deposit and withdrawal. You can avail of the service FREE, at home branch,

as per the branch's discretion. At non-home branches within the same city, you can

withdraw cash up to Rs.50,000/-, but cash deposits are allowed to account-holder (self)

only, upto Rs.100,000/- per day at a charge of Rs.2/- per Rs.1,000/-.

Free Cheque book with "At Par" cheque leaves.

2) Trade Current a/c:

In today's changing busines requirements, you need to transfer funds across cities, and time is of

the essence. HDFC Bank Trade Current Account gives you the power of

inter-city banking with a single account.

From special cheques that get treated at par with local ones in any city where we have a branch,

to free** collection of outstation cheques (payable at branch locations), to free inter-city funds

transfers of up to 25 lakhs, our priority services have become the benchmark for banking

efficiency.

Features & benefits

Convenient Inter-city banking across more than 185 cities

Safe & convenient Intra-city banking

FREE Funds Transfer. Huge Savings.

DE-MAT ACCOUNT:

HDFC BANK is one of the leading Depository Participant (DP) in the country with over 8 Lac

de-mat accounts.

HDFC Bank De-mat services offers you a secure and convenient way to keep track of your

securities and investments, over a period of time, without the hassle of handling physical

39

documents that get mutilated or lost in transit.

HDFC BANK is Depository participant both with -National Securities Depositories Limited

(NSDL) and Central Depository Services Limited (CDSL).

LOANS

PERSONAL LOAN

Features & benefits

Borrow up to Rs 10,00,000 for any purpose depending on your requirements.

Flexible Repayment options, ranging from 12 to 48 months.

Repay with easy EMI.

One of the lowest interest rates.

Hassle free loans - No guarantor/security/collateral required.

Speedy loan approval.

Convenience of service at your doorstep.

Customer privileges

HOME LOAN

Features & benefits

Home Loan - We offer home loans for individuals to purchase (fresh / resale) or

construct houses. Home loans can be applied for individually or jointly. HDFC finances

40

up to 85% maximum of the cost of the property (Agreement value + Stamp duty +

Registration charges).

Home Improvement Loan - HIL facilitates internal and external repairs and other

structural improvements like painting, waterproofing, plumbing and electric works, tiling

and flooring, grills and aluminium windows. HDFC finances up to 85% of the cost of

renovation (100% for existing customers).

Home Extension Loan - HEL facilitates the extension of an existing dwelling unit. All

the terms are the same as applicable to Home Loan.

Land Purchase Loan - Be it land for a dream house, or just an investment for the future,

HDFC Land Purchase Loan is a convenient loan facility to purchase land. HDFC finances

up to 70% of the cost of the land (Conditions Apply). Repayment of the loan can be done

over a maximum period of 10 years.

Choose from Fixed Rate or Floating Rate with options to structure your loan as Partly

Fixed or Partly Floating.

Flexible repayment options to suit your individual needs.

Loan cover Term Assurance Plan - HDFC Standard Life Insurance Company Ltd. offers

an insurance plan*, which is designed to ensure that life's uncertainties do not affect your

family's interests and your precious home. LCTAP provides a lump-sum payment on the

unfortunate demise of the life assured.

NEW CAR LOAN

Features & benefits

Covers the widest range of cars and multi-utility vehicles in India.

Avail 100% finance on your favourite car

Flexible repayment options, ranging from 12 to 84 months.

Borrow up to 3 times your annual salary (for salaried professionals) and 6 times your

annual income (for self employed professionals).

Speedy processing - within 48 hours

Repay with easy EMIs.

41

Attractive car loan plans - To Fastrack your loan, just choose the plan that is right for

you.

Attractive Interest rates

TWO WHEELER LOAN

100 CC?180 CC?Or maybe a 500 CC? Whichever the bike, our Two Wheeler loan is the

answer. With quick approvals, flexible payment options and easy repayment.

Features & benefits

Flexible repayment options, ranging from 12 to 48 months available even at the point of

purchase

Repay through post-dated cheques with easy EMIs. Calculate your EMI

Hassle free loans - No guarantor required.

Speedy loan approval.

Available for almost all models at attractive interest rates

OVERDRAFT AGAINST CAR

Need extra cash? Want a lower rate of interest than a personal loan? Have a car to

yourname?

With HDFC Bank's Overdraft Against Car, one can get an overdraft against car and utilise the

money for personal or business needs.

Features & benefits

Overdrafts available on cars hypothecated with the bank and up to 9 years old.

Loans ranging from Rs. 50,000 to Rs. 7 lacs depending on your needs.

Borrow up to 90% of the value of the car

LOAN AGAINST SECURITIES

42

With HDFC Bank's Loan against Securities, one can get an overdraft against securities like

Equity Shares, Mutual Fund Units, GOI Relief Bonds, LIC Policies, NSC, KVP, UTI Bonds

(6.60% ARS & US64 Bonds) and Gold Deposit Certificates, while still retaining ownership. And

the best part is that one can continue to enjoy all shareholder benefits such as rights, dividends

and bonuses.

Features & benefits

Overdraft facility can be availed against pledge of:

Equity Shares* - Demat Shares up to 50% of the value.

Mutual Fund units* - Mutual Funds up to 50% of NAV (Net Asset Value). See

approved Mutual Fund Schemes.

GOI Relief Bonds

LIC Policies

LOAN AGAINST PROPERTY

HDFC Bank brings to you Loan Against Property (LAP). one can now take a loan against

residential or commercial property, to expand his/her business, plan a dream wedding, fund

child's education and much more. Loan to purchase Commercial Property (LCP) is a specially

designed product to help you expand your business without reducing the capital from your

business.

Features & benefits

Loans from Rs. 2 Lacs onwards depending on your needs

Borrow up to 60% of market value of the property

Flexibility to choose between an EMI based loan or an Overdraft - We also offer to you

overdraft against your self-occupied residential or commercial property and you save

money by paying interest only on the amount utilized.

High tenure loans for ease of repayment.

Attractive interest rates.

43

COMMERCIAL VEHICLE FINANCE

Truck? Tempo? or a Tipper? If some one is looking for finance to buy commercial vehicle.

We offer hassle-free Commercial Vehicle Loan with the best terms for funding at the most

attractive rates in India.

WORKING CAPITAL FINANCE

“HDFC” a bank with substantial appetite for recognized credits., they have a team of customer-

driven relationship managers with wide industry experience in various segments. HDFC provide

working capital finance by way of cash credit or loans suitably structured for the transporter to

fund day-to-day operations like fuel, tyre replacement, repairs, salary, maintenance, etc.

CREDIT CARDS:

Besides arming one with unmatched spending power, HDFC Banks Credit Cards are designed to

meet ones unique needs.

INTERNATIONAL SILVER CREDIT CARD

Rewards points, Insurance to suit ones needs! Loyalty does definitely reap rewards with HDFC

Bank with lower interest rates and privilege pricing on our products.

Features & benefits

1) Add on cards

Get up to 3 supplementary cards for your spouse, parents, siblings (own brother/sister), son

and/or daughter (over 18 years) and allow them to enjoy the many benefits of a HDFC Bank

International Silver Credit Card.

2) Zero liability on lost card

Report your credit card loss immediately to our executives at our 24-hour call centers. After

reporting to us, you carry zero liability on any fraudulent transactions on your card.

44

3) Widely accepted

Accepted at over 110,000 merchant establishments across India and Nepal and close to 18

million merchant establishments around the world.

GOLD CREDIT CARD

Features & benefits

Upto5%cashbackonairticketing

Get a whopping 5% cash back on any domestic air ticket purchased with HDFC Bank Gold

Credit Card directly from the Airline Company's website, for transactions above

Rs 10000. For transactions up to Rs 10000, get 2.5% cashback.

5% cashback on train ticketing

Get 5% cashback on railway tickets purchased with your HDFC Bank Gold Credit Card at the

Indian Railway.

Discounts on hotel tariff

A whopping 50% discount on hotel stays across India and abroad, through complimentary Silver

Benefit membership to the International Business Traveler’s Club. You are also eligible for up to

50% discounts for car rentals from Hertz-Rent-a-Car, through the IBTC membership.

Insurance benefits

HDFC Banks provide air accident cover of Rs.25 lakhs, rail/road accident cover of Rs 3 lakhs

and accidental hospitalization cover of Rs 50,000 absolutely free on the card.

Greater reward points

With the HDFC Bank Gold Credit Card you earn 2 reward points for every Rs. 100 spent on the

card.

Revolving credit facility

Pay a minimum amount, which is 5% (subject to a minimum amount of Rs.200) of your total bill

amount or any higher amount whichever is convenient and carry forward the balance to a better

45

financial month. For this facility you pay a nominal charge of just 2.95% per month (35.4%

annually) (2.85% per month 34.2% annually for HDFC Bank Account Holders).

TITANIUM CREDIT CARD

The HDFC Bank Titanium Credit Card is quite simply the most exclusive Credit card you could

ask for. Find out all it can do for you. And you'll never be satisfied with anything less.

Features & benefits

Discounts o n hotel tariff

Enjoy a flat 50% discounts on 150 hotels in India and 1500 hotels worldwide, with the

complimentary membership to International Business Travellers' Club.

Conversion of reward points to air miles

You can redeem your accumulated reward points for air miles on India's top airlines - Jet

Airways, Indian, Air Sahara & Kingfisher Airlines.

Lowest ever interest rates

If you choose to use the Revolving Credit Facility, you would pay the lowest-ever interest rate of

1.95% per month. This would translate to ample flexibility in terms of financial planning at your

convenience.

Zero petrol surcharge

Earn while you spend on your fuel!!! As a HDFC Bank Titanium Card customer, you enjoy not

only a full waiver of the fuel surcharge that would be normally applicable otherwise, you also get

the benefit of earning reward points on these spends.

Lost card liability

In case you lose your card, intimate us immediately. If any fraudulent transactions happen after

you have intimated to us, you are fully absolved of any liability on those transactions up to Rs.

2.00 lacs.

46

Interest free credit facility

Your Card now gets you the highest Free Credit Period of upto 55 days from the date of purchase

(subject to the submission of the charge by the Merchant).

VALUE PLUS CREDIT CARD

It's power packed with a host of unmatched features that provides your family with true Value

and savings. No wonder we call it the HDFC Bank International Value Plus Credit Card.Like the

name suggests, the Value Plus Credit Card brings you added value unlike any other card. It is a

Guaranteed Cash Back card which enables you to earn up to 5% Cash Back on your spends.

Features & benefits

Children Future Secured

The happiness and the well-being of your children is your most important responsibility. HDFC

Bank values your commitment and has designed a comprehensive insurance package of Rs. 1

Lakh enabling your children to continue their education in the unfortunate event of loss of your

life due to accident.

Household Insurance

HDFC Bank Value Plus Credit Card also comes with a comprehensive House Hold Insurance

Policy that covers damage caused to household contents by fire and burglary up to a value of Rs

1 Lakh.

Worldwide acceptance

The HDFC Bank International Value Plus Credit Card is accepted at over 23 million Merchant

Establishments around the world, including 110,000 Merchant Establishments in India.

Cash Advance

Just step into any one of our ATMs or VISA Member ATMs and withdraw cash up to 30% of

your credit limit at a very nominal charge.

47

Accidental Death

In case of death in an air accident your nominated next of kin will receive a compensation of

Rs.2,00,000. And in case of death in a rail or road accident, your nominated next of kin will

receive a compensation of Rs.1,00,000.

DEBIT CARDS

What if you could carry your bank account with you? HDFC Bank Debit Cards give you

complete and instant access to the money in your accounts without the risk or hassle of carrying

cash. Choose from:

1) Classic Cards (Easy shop International Debit Card)

2) Specialized Cards(Easy shop Woman’s Advantage Debit Card)

3) Premium Cards(Easy shop Gold Debit Card)

Easy shop International Debit Card

Features & benefits

Daily Limits: Rs. 15000 at ATMs for Withdrawal and Rs. 25000 at merchant

establishments for shopping.

Access your bank account at over 8,00,000 Visa/Maestro/Cirrus ATMs in India and

abroad.

Shop at more than 3,50,000 outlets in India and 13 million worldwide. The amount is

debited directly to your account.

Use your card overseas. Your account is debited in Rupees regardless of the currency in

which you spend.

48

Worldwide assistance from Visa and MasterCard on your card.

Easy shop Woman’s Advantage Debit Card

HDFC Bank Easy Shop Woman's Advantage Debit Card is India's first Woman's Debit Card of

its kind. Not only does it replace your ATM card, it also opens a world of privileges that match

your status and lifestyle.

Features & benefits

Cash Back of Re. 1 for every Rs. 200 spent: For every Rs. 200 that you will spend , you will

receive Re. 1 as cash back .This cash back is valid on all purchases made through the card, at all

times of the year.

Specialized Services: A unique service number will be available for Woman's Debit Card

customers to avail information / booking for the services listed ahead. Just call, quote your card

number and use any of the services.

Entertainment assistance :

Dining Referral and Reservation Assistance

Flower & Gift Delivery

Movie Tickets

Home assistance:

Financial Planning & Advisory Services Assistance

Electrical & Electronic Gadget Repair Assistance

Pest Control Assistance

Home Cleaning Assistance

Wellness :

Medical Check Up Packages

Nursing Care Arrangement

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PREPAID CARDS

ForexPlus Card

HDFC Bank brings you the ForexPlus Travel Card - a pre-paid traveller's card designed to give

you a secure and hassle-free travel experience.

No more chasing moneychangers. Or paying transaction charges for shopping abroad. The

ForexPlus Travel Card is ideal for travelers since it can be blocked if stolen and reloaded, while

you are still abroad! In fact, it is the perfect answer to all your foreign exchange needs.

The ForexPlus Travel Card is:

Accepted at over 13 million Visa Merchants worldwide

Can be used to withdraw cash at 24 hour VISA ATMs anywhere in the world.

Reloadable anytime, anyplace.

Available in US Dollar, Euro and GBP Currencies.

Comes with a Personal Accident Insurance Covers of Rs 2 lacs

Includes Loss of Baggage & Passport reconstruction insurance cover

INVESTMENTS & INSURANCE

HDFC Bank ensures your money is not just in safe hands; it also works to their advantage. It

helps them to invest wisely through its financial and investment services.

Mutual funds

50

Mutual funds are funds that pool the money of several investors to invest in equity or debt

markets. Mutual Funds could be Equity funds , Debt funds or balanced funds.

Funds are selected on quantitative parameters like volatality, FAMA Model, risk adjusted

returns, rolling return coupled with a qualitative analysis of fund performance and investment

styles through regular interactions / due diligence processes with fund managers.

Advantages of investing into a Mutual Fund

A large part of the success of mutual funds is also the advantages they offer in terms of

diversification, professional management and liquidity.

Flexibilty - Mutual Fund investments also offers you a lot of flexibility with features such as

systematic investment plans, systematic withdrawal plans & dividend reinvestment.

Affordability - They are available in units so this makes it very affordable. Because of the large

corpus, even a small investor can benefit from its investment strategy.

Liquidity - In open ended schemes, you have the option of withdrawing or redeeming your

money at any point of time at the current NAV.

Diversification - Risk is lowered with Mutual Funds as they invest across different industries &

stocks.

Professional Management - Expert Fund Managers of the Mutual Fund analyse all options

based on experience & research.

Insurance

HDFC Bank offers a world of choice in insurance. one can now avail of Life - Insurance plans

from HDFC Standard Life Insurance.

Financial Planning

51

The Financial Planning service is offered as an option to long term investors. The portfolio is

advised on in a passive investment style with the asset category as mutual funds. The planner is

suitable for investors who wish to take a asset allocation based, long term investment outlook,

ignoring the short term volatalities of financial markets.

Financial Planning takes into account:

Desired asset allocation, risk profile and return expectations

Building cash flows correlating all expenses and income. Inflation and outflows due

to loans are considering in building the financial plan

Future goals like retirement, housing and children's education / marriage or other

needs

Equities & Derivatives

In financial markets, the only constant thing is change. At such times, HDFC Securities offers

you a unique gamut of services designed to put you in charge of your finances and lets you trade

in the comfort of your home or office. Finally, you can trade with complete ease. The HDFC

Securities trading account has a unique 3-in-1 feature that integrates your HDFC Securities

trading account with your existing HDFC bank savings account and existing Demat account. At

your instructions, funds / shares can be seamlessly moved from your linked Demat/Bank account

to execute your transactions.

FOREX AND TRADE SERVICES

If one needs to deal in foreign currency and keep tabs on exchange rates every now and then,

transfer monies to India, make payments etc., HDFC Bank has a range of products and services

that you can choose from to transact smoothly, efficiently and in a timely manner.

Foreign Exchange and Trade Services

52

The following are different methods of transacting in Foreign Exchange and remitting money.

Travellers Cheques

Foreign Currency Cash

Foreign Currency

Drafts

Cheque Deposits

Remittances

Cash to Master

Trade Services

Forex Services Branch

Locator

PAYMENT SERVICES

With HDFC Bank's payment services, one can bid goodbye to queues and paper work. Our range

of payment options make it easy for you to pay for a variety of utilities and services.

NetSafe: Now shop online without revealing your HDFC Bank Credit Card number.

BillPay: Pay your telephone, electricity and mobile phone bills at your convenience. Through the

Internet, ATMs, your mobile phone and telephone - with BillPay, our comprehensive bill

payments solution.

InstaPay: Pay your bills, make donations and subscribe to magazines without going through the

hassles of any registration.

DirectPay: Shop or Pay bills online without cash or card. Debit your account directly with our

DirectPay service!

Visa Money Transfer: Transfer funds to any Visa Card (debit or credit) within India at your

own convenience through HDFC Bank's NetBanking facility.

e-Monies National Electronic Funds Transfer: Transfer funds from your account to other

Bank accounts across India - FREE of cost!

53

Online Payment of Excise & Service Tax: Make your Excise and Service Tax payments at

your own convenience through HDFC Bank's NetBanking facility.

PRIVATE BANKING

HDFC Bank offers Private Banking services to high net worth individuals and institutions. Our

team of seasoned financial and investment professionals provide objective guidance backed by

thorough research and in-depth analysis keeping in mind your financial goals.Multiple

Recognition from Euromoney: At HDFC Bank, we have always strived towards providing

exceptional service to each of our esteemed customers. As testament to this dedication, we have

earned the following ranks in a recently conducted Euromoney Survey. Rated as the Best

Private Bank in the Super Affluent Category in India.

NRI BANKING

NRI FIXED DEPOSITS

Features & Benefits

Open the deposit jointly with any other NRI

Avail of a loan of upto 75% of your deposit

Repatriate your complete deposit (principal and interest) at any time.

The entire deposit (principal and interest) is exempt from tax.

WHOLESALE BANKING

CORPORATES

Corporate Banking reflects HDFC Bank's strengths in providing our corporate clients in India, a

wide array of commercial, transactional and electronic banking products. We achieve this

through innovative product development and a well-integrated approach to relationship

management.

54

LARGE CORPORATES

We offer blue chip companies in the India, a full range of client-focused corporate banking

services, including working capital finance, trade and transactional services, foreign exchange

and cash management, to name a few. The product offerings are suitably structured taking into

account a client's risk profile and specific needs. Based on our superior product delivery, industry

benchmark service levels and strong customer orientation, we have made significant inroads into

the formal banking consortia of a number of Indian companies including multinationals,

domestic business houses and prime public sector companies.

Funded Services

Working Capital Finance Short Term Finance

Bill Discounting Structured Finance

Export Credit Term Lending

Non Funded Services

Letter of Credit Bank Guarantees

Collection of Documents

Value Added Services

Syndication Services Forex Desk

Real Time Gross Settlement Money Market Desk

Cash Management Services Derivatives Desk

Channel Financing Employees Trusts

Vendor Financing Cash Surplus Corporates

Corporate Salary Accounts Tax Collection

Reimbursement Account Bankers to Right/Public Issue

Internet Banking

Supply Chain Management

55

Payment Gateway Services

Corporate Internet Banking

Supply Chain Partners

At HDFC Bank we create Supply Chain Finance solutions that enable our clients to automate

supply chain management resulting in operational efficiency and supply chain gains. Our vast

array of services and supply chain solutions help in seamless transfer of funds, faster delivery of

goods and reduction of processing costs. And all this from our website or our revolutionary

ENet™ service

Agricultural Lending

Everyone who is involved in agricultural industry knows that the business is not usual. Each

agribusiness faces different challenges and has unique needs. From the fluctuating cash flows to

the unpredictability of the weather, managing a successful agribusiness requires a distinctive

approach.That's why the HDFC Bank has solutions that are chiefly dedicated to agribusiness.

Small & Medium Enterprises

At HDFC Bank we understand how much of hard work goes into establishing a successful SME.

We also understand that your business is anything but "small" and as demanding as ever. And as

your business expands and enters new territories and markets, you need to keep pace with the

growing requests that come in, which may lead to purchasing new, or updating existing plant and

equipment, or employing new staff to cope with the demand. That's why we at HDFC Bank have

assembled products, services, resources and expert advice to help ensure that your business

excels. Our solutions are designed to meet your varying needs. The following links will help you

identify your individual needs.

Funded Services

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Funded Services from HDFC Bank are meant to directly bolster the day-to-day working of a

small and a medium business enterprise. From working capital finance to credit substitutes; from

export credit to construction equipment loan - we cater to virtually every business requirement of

an SME.

Non-Funded Services

Under Non-Funded services HDFC Bank offers solutions that act as a catalyst to propel your

business. Imagine a situation where you have a letter of credit and need finance against the same

or you have a tender and you need to equip yourself with a guarantee in order to go ahead. This

is exactly where we can help you so that you don't face any roadblocks when it comes to your

business.

Specialized Services

HDFC Bank is one of the most trusted entities when it comes to specialized services like selling

of precious metals to customers. Under specialized services you can also avail customized

control of your value chain through our internet banking platform.

Value Added Services

There is a plethora of services that we offer under value added services. There's corporate salary

account which ensures smooth payment methods to your staff. You can avail an assortment of

credit cards and debit cards from our merchant services.

Internet Banking

Internet banking is a revolutionary service under the banking sector and HDFC Bank is a

forerunner in providing you with this service. We provide state-of-the-art payment gateway

services to industries and companies in order to ease transaction processing. This in turn

enhances the credibility of your business and makes banking extremely cost-efficient.

Financial Institutions & Trusts

HDFC Bank provides correspondent bank services to Co-operative Banks, Private Banks,

Foreign Banks & RRB's. Banks can leverage HDFC banks branch network , technology and

product capability. We have a wide range of products engineered to suit the needs of the banking

sector this is backed up by a dedicated Relationship Management Team and dedicated servicing

57

department. Institutions need a bank that uses its financial skills to streamline performance and

build business. Therefore we at HDFC Bank focus on responding to the unique environments of

each and every client, configuring our core capabilities to satisfy those needs within locations or

sectors.

Government Sector

HDFC Bank acts as an active medium between the government and the customers by means of

various services. These services include:

Tax Collection wherein customers can directly pay their taxes like Direct taxes, Indirect taxes

and Sales Tax collections at their local HDFC Bank.

E-Ticketing - Helps the customer by providing him a direct access to book a Railway Ticket

online and get it home delivered.

Opening of L/C's is done by the bank on behalf of Government of India, Mints and Presses, thus

facilitating imports for the Government.

Collection of levies and taxes on behalf of Municipal Corporations i.e. Kalyan -Dombivli

Municipal Corporation, is undertaken by the Bank.

Disbursement of Pension to retired Employees of Central Govt and Defence is directly done by

HDFC Bank along with the disbursement of pension to the members of EPFO (Employees

Provident Fund Organization).

Electronic Collection of fees on behalf of DGFT is done by the bank too.

58

I

PROBLEM DEFINITION/OBJECTIVE

59

Market Research….

Primary objective:

To study the perception of customers’ about HDFC Bank via intra products comparison

& How HDFC Bank differentiates its products and services.

Secondary objective:

1. To do a comparative study of various attributes of HDFC Bank products and services.

2. To study the loop holes if any of HDFC BANK.

RESEARCH METHODOLOGY

I) Research Design: Definition "A research design is the arrangement of condition for collection

and analysis of data in a manner that to combine relevance to research purpose with economy in

procedure”. The research design helps the researcher organize his ideas in a form whereby it will

be possible for him/her to look for flaws and inadequacies.

II) Objective of the Project:

The major objectives of the research study are

Examine the psychographics of potential HDFC Bank users and non users

Prove the perception of customers towards the commercial banks.

To judge awareness level HDFC Bank products & services, amongst people.

To find out the customer expectations from HDFC Bank.

III) Sources of Primary and Secondary Data

One major aim of this project was to analyze the competition on retail banking market with

respect to HDFC and their products & offerings. Therefore I had to gain knowledge about the

different products of its products and their various functionalities with respect to HDFC Bank

and how the other nabks are doing well in the same aspect. In order to accumulate this

knowledge. I had to go through a lot of secondary data namely ( Indian banking System)

HDFC Banks' Annual Report and products & services of HDFC bank collected from internet.

The only way this project could have been done was' by collecting primary data from the

common man For this purpose a detailed structured questionnaire was made and tested before

being put to use.

60

IV) Sampling Design

a) Target Segment: - Those customers who are the users of HDFC Bank especially corporates.

b) Time boundary: 2nd May 2008 to 30th June 2008.As these people can be met only at offices,

Banks, ATMs and shopping complex during bank working hours, I took their interviews from

10. 00 AM to 6. 00 PM .on weekdays.

C) Characteristics: - To know the perception of customers for using HDFC Bank products &

services

d) Environmental condition: Feasible in all possible economic scenarios.

e) Tools & Techniques: - SPSS package & Excel Sheet.

f) Who should be interviewed: -Major concern was to interview the right person, at the right

time and the right place.

g) Demographics of Respondents:-

Age : (20-50+) years

Occupations : Student or business or service or others

Sex : Male or Female

Marital Status : Married or Single

61

I

62

Data analysis….

DATA ANALYSIS & OBSERVATION

FINDINGS:

Question no 1: How long have you been using a product of HDFC?

Output

Statistics

N Valid 99

Missing 2Mean 3.17Median 2.00Mode 1Std. Deviation 2.511

The above table shows that from the sample, the maximum number of respondents have started

using HDFC bank from 1– 4 years. Having a total percentage of 67.67%.This means that from

last four years HDFC is growing and it has become more familiar to the public in private sector

Frequency Percent

Valid Percent

Cumulative Percent

Valid < 6 months

7 6.9 7.1 7.1

1 26 25.7 26.3 33.32 17 16.8 17.2 50.53 14 13.9 14.1 64.64 10 9.9 10.1 74.75 5 5.0 5.1 79.86 7 6.9 7.1 86.97 4 4.0 4.0 90.98 4 4.0 4.0 94.99 5 5.0 5.1 100.0Total 99 98.0 100.0

Missing

System2 2.0

63

banking .But if you closely look at the pie-chart you can see the majority of the sample hold an

account with HDFC only for an year.

Question no 2: Tick the most widely used product by you among the following.

Statistics

Frequency Percent Valid PercentCumulative

PercentValid Dmat 8 7.9 8.0 8.0

FD 4 4.0 4.0 12.0

Mutual fund 8 7.9 8.0 20.0

Credit cards 19 18.8 19.0 39.0

SB/CA 57 56.4 57.0 96.0

Loans 4 4.0 4.0 100.0

Total 100 99.0 100.0Missing System 1 1.0Total 101 100.0

N Valid 100

Missing 1Mean 4.25Median 5.00Mode 5Std. Deviation 1.282

64

Tick the most widely used product by you among the following

6420

Fre

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60

50

40

30

20

10

04

57

19

84

8

8

Histogram

Mean =4.25Std. Dev. =1.282

N =100

According to the data collected, on which the mean/median / std deviation analysis was run using

the SPSS tool , the median tends to indicate that the most widely used product in the sample size

is SB/CA/Sal a/c . This is indicated in the mean/median table and the histogram .this being an

ordinal scale median is the best measure.(refer to the histogram above)

Here we can also check how gender influences the choice of a product using the SPSS tool-

Compare means.

Report

Tick the most widely used product by you among the following

Sex Mean N Std. Deviation Median SkewnessMale 4.25 80 1.307 5.00 -1.456Female 4.37 19 1.116 5.00 -1.641Total 4.27 99 1.268 5.00 -1.480

65

Dmat 1FD 2Mutual Funds 3Credit Cards 4SB/CA/Sal 5Loans 6

From the above table it can be inferred that the score of the two means are approximately similar

so gender does not quite influence the choice of the product. Though if you closely look at the

distribution of the male and female sample collected you can see a considerable difference in the

number but even that does not effect to the choice of the products made.

We can also look at it from a different perspective, which is the ANOVA(Analysis of variance)

H0: There is no significant difference between the two genders in choosing the product.

Against

H1: There is a significant difference between the two genders in choosing the product.

ANOVA Table

Sum of

Squares dfMean

Square F Sig.Tick the most widely used product by you among the following * Sex

Between Groups

(Combined).215 1 .215 .133 .716

Within Groups 157.421 97 1.623Total 157.636 98

Here we can conclude that the significance value is considerably more than (0.05) which says

that we can accept H0(null hypothesis).

Hence, there is no influence of gender in the choice of the product.

Question no 3: Comparing other bank products the products of HDFC

Statistics

N Valid 100

Missing 1Mean 1.16Median 1.00Mode 1Std. Deviation .707

66

Skewness -1.640Std. Error of Skewness .241

Frequency Percent Valid PercentCumulative

PercentValid Strongly dissatisfactory 1 1.0 1.0 1.0

Dissatisfactory 4 4.0 4.0 5.0

Satisfactory 68 67.3 68.0 73.0

Strongly satisfactory 27 26.7 27.0 100.0

Total 100 99.0 100.0Missing System 1 1.0Total 101 100.0

1.00%

27.00%

68.00%

4.00%

Missingstrongly satisfactorysatisfactorydissatisfactorystrongly dissatisfactory

Comparing other bank products, the produtcs of HDFC

Mean is almost equal to Median (1=1.16) here in the Q3.So we can conclude by saying the

that most of the customers of HDFC bank are satisfied with the products.

Question no 4: The service of which among the following products do you prefer in HDFC Statistics

N Valid 98

67

Missing 3Mean 4.14Median 5.00Mode 5Std. Deviation 1.308Skewness -.749Std. Error of Skewness .244

Frequency Percent Valid PercentCumulative

PercentValid Dmat 3 3.0 3.1 3.1

FD 14 13.9 14.3 17.3

Mutual Funds 8 7.9 8.2 25.5

Credit Card 23 22.8 23.5 49.0

SB/CA 41 40.6 41.8 90.8

Loans 9 8.9 9.2 100.0

Total 98 97.0 100.0Missing System 3 3.0Total 101 100.0

68

The service of which among the following products do you prefer in hdfc

6420

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50

40

30

20

10

0

Histogram

Mean =4.14Std. Dev. =1.308

N =98

Dmat 1FD 2Mutual Funds 3Credit Cards 4SB/CA/Sal 5Loans 6

The analysis pertaining to Q4 , where in the mean = 4.14 and median = 5 , reveals that credit

cards and SB/CA/Sal A/C are clearly preferred in HDFC . Also it means to suggest that the

penetration of HDFC in this segment in much higher in the market . The data also suggests

that the most SB/CA/Sal A/C users of HDFC bank prefer the same banks Credit Card . This

also can be seen the HDFC has been successful in penetrating across the requirements of its

customers instead of loosing some of its services to competitors .

Question no 5: Basing on what parameters do you choose a product

Descriptive Statistics

N Minimum Maximum Mean Std. DeviationBasing on what parameters do you choose a product

99 1 6 2.39 1.743

Valid N (listwise) 99

Statistics

Frequency Percent Valid PercentCumulative

PercentValid Dmat 3 3.0 3.1 3.1

N Valid 98

Missing 3Mean 4.14Median 5.00Mode 5Std. Deviation 1.308Skewness -.749Std. Error of Skewness .244

69

FD 14 13.9 14.3 17.3

Mutual Funds 8 7.9 8.2 25.5

Credit Card 23 22.8 23.5 49.0

SB/CA 41 40.6 41.8 90.8

Loans 9 8.9 9.2 100.0

Total 98 97.0 100.0Missing System 3 3.0Total 101 100.0

3

9

41

23

8

14

3

Missingloanssb/cacredit cardmutual fundsfddmat

The service of which among the following products do you prefer in hdfc

Again looking at the median ,it being a ordinal scale we can conclude that customers look

from service when they want to choose a bank.You can clearly see that the service has

occupied more that 50% of the sample size,brand and features being the second important

factor for choosing a bank.

Question no 6

Analyze the performance of Credit Cards on the following parameters

Convenient ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ Not Convenient

Costly ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ Less costly

Efficient ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __Less Efficient

70

Aware ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ Not Aware

Low TAT ___ ___ ___ ____ _____ ___ ___ ___ ____ ____ ___ High

Descriptive Statistics

N Minimum Maximum MeanStd.

Deviation Skewness Kurtosis

Statistic Statistic Statistic Statistic Statistic Statistic Std. Error Statistic Std. ErrorConvenient 79 1 7 5.59 2.003 -1.237 .271 .184 .535Costly 80 1 7 4.59 2.265 -.388 .269 -1.304 .532Efficient 80 1 7 5.49 1.987 -1.152 .269 .038 .532Aware 80 1 7 5.25 2.053 -.824 .269 -.622 .532TAT 80 1 7 5.01 2.161 -.580 .269 -1.197 .532Valid N (listwise)

79

Statistics

Convenient Costly Efficient Aware TATN Valid 79 80 80 80 80

Missing 22 21 21 21 21Median 7.00 5.00 6.50 6.00 6.00

Convenient

Frequency Percent Valid PercentCumulative

PercentValid Not

Convenient(1)6 5.9 7.6 7.6

2 5 5.0 6.3 13.93 3 3.0 3.8 17.74 3 3.0 3.8 21.55 12 11.9 15.2 36.76 5 5.0 6.3 43.0Convenient(7) 45 44.6 57.0 100.0

Costly

Frequency Percent Valid PercentCumulative

PercentValid Costly(1) 13 12.9 16.3 16.3

2 8 7.9 10.0 26.3

3 3 3.0 3.8 30.0

4 11 10.9 13.8 43.8

5 13 12.9 16.3 60.0

6 4 4.0 5.0 65.0

Less costly 28 27.7 35.0 100.0

71

Efficient

Aware

Frequency Percent Valid PercentCumulative

PercentValid Not

aware(1)7 6.9 8.8 8.8

2 4 4.0 5.0 13.8

3 5 5.0 6.3 20.0

4 12 11.9 15.0 35.0

5 8 7.9 10.0 45.0

6 6 5.9 7.5 52.5

Aware(7) 38 37.6 47.5 100.0

TAT

Frequency Percent Valid PercentCumulative

PercentValid Low

TAT(7)6 5.9 7.5 7.5

6 10 9.9 12.5 20.0

5 8 7.9 10.0 30.0

4 5 5.0 6.3 36.3

Frequency Percent Valid PercentCumulative

PercentValid Less

Efficient(1)6 5.9 7.5 7.5

2 6 5.9 7.5 15.0

3 1 1.0 1.3 16.3

4 7 6.9 8.8 25.0

5 10 9.9 12.5 37.5

6 10 9.9 12.5 50.0

Efficient(7) 40 39.6 50.0 100.0

72

3 10 9.9 12.5 48.8

2 6 5.9 7.5 56.3

TAT(1) 35 34.7 43.8 100.0

Total 80 79.2 100.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

1 2 3 4 5 6 7

Convenient

Costly

Efficient

Awareness

TAT

This question gives us a descriptive analysis of the credit cards of HDFC throughout the various

parameters of the credit cards The various tables gives us a n exhaustive but and easy way to

understand the perception of customers with respect to various parameters mentioned in the

question.Now if you look at the Bar-chart we can clearly say that customers look for

convenience as their major parameter in choosing a credit card. But they we can also see that

customers are not very ahppy with the rates of the credit card and they find it costly.This is a

bipolar scale where we are using a 7-point rating scale..

Question no 7: The sweep-in facility of FD is ___________ to the customers

Statistics

73

N Valid 94

Missing 7Mean 2.29Std. Error of Mean .079Median 2.00Mode 2Std. Deviation .771Kurtosis .385Percentiles 25 2.00

50 2.0075 3.00

Frequency Percent Valid PercentCumulative

PercentValid Less beneficial 9 8.9 9.6 9.6

Beneficial 58 57.4 61.7 71.3

More beneficial 18 17.8 19.1 90.4

Most beneficial 9 8.9 9.6 100.0

Total 94 93.1 100.0Missing System 7 6.9Total 101 100.0

74

9

18

58

9

Fre

qu

en

cy

60

50

40

30

20

10

0

The sweep in facility of FDmost beneficialmore beneficailbeneficialless bebeficail

The sweep in facility of FD

Question no 8: Rate the following features of FD on a scale of 5.(1=Poor and 5= excellent)

Altering period of deposit _____

Maturity and payment instructions _____

Principal amount _____

Roll over mode _____

Altering period of deposit

Frequency Percent Valid PercentCumulative

PercentValid 1 4 4.0 5.3 5.3

2 13 12.9 17.3 22.7

3 18 17.8 24.0 46.7

4 23 22.8 30.7 77.3

5 17 16.8 22.7 100.0

Total 75 74.3 100.0

Maturity and payment instructions

75

Frequency Percent Valid PercentCumulative

PercentValid 2 18 17.8 22.8 22.8

3 14 13.9 17.7 40.5

4 22 21.8 27.8 68.4

5 25 24.8 31.6 100.0

Total 79 78.2 100.0

Principal amount

Frequency Percent Valid PercentCumulative

PercentValid 1 10 9.9 13.2 13.2

2 6 5.9 7.9 21.1

3 26 25.7 34.2 55.3

4 14 13.9 18.4 73.7

5 20 19.8 26.3 100.0

Total 76 75.2 100.0

Roll over mode

Frequency Percent Valid PercentCumulative

PercentValid 1 5 5.0 6.5 6.5

2 15 14.9 19.5 26.0

3 14 13.9 18.2 44.2

4 23 22.8 29.9 74.0

5 20 19.8 26.0 100.0

Total 77 76.2 100.0

0%

20%

40%

60%

80%

100%

Percentages

Poor Execellent

Features of FD

Roll over Mode

Principal Amonut

Maturity

Altering Period of Deposits

76

My objective behind formulating this question was to find out whether the customers are happy

with the features offered by HDFC Bank. So while having to do the analysis part we could

analyze via the frequency tables. And my main motive was to find out the poor and the excellent

scale on a 5 point scale. So the graph above gives us a study of only the poor and the excellent

scale. So if you closely look at it you would see that the entire sample size of 100 are happy with

the maturity and payment instructions. And also the excellent bar shows equal distribution o

all the factors, forcing us to conclude that the customers are more or less happy with the FD as a

product

Question no 9: Rate on a scale of 5 the performance of HSL as a suitable room for

investment

Statistics

N Valid 72

Missing 29Mean 3.67Median 4.00Std. Deviation 1.035

Frequency Percent Valid PercentCumulative

PercentValid 1 3 3.0 4.2 4.2

2 4 4.0 5.6 9.7

3 24 23.8 33.3 43.1

4 24 23.8 33.3 76.4

5 17 16.8 23.6 100.0

Total 72 71.3 100.0

(1=Poor, 5=Excellent)

77

Performance of HSL

4%6%

33%

33%

24%

1

2

3

4

5

This doughnut area chart show us in terms of percentages as to how much they like or dislike

the performance of HSL (HDFC Securities Limited) on a 5 point rating

scale(1=Poor,5=Excellent).What we can see here is that rating 3&4 have equal

importance(33%) from the point of view customer preference. And 24% of people also have

find it excellent. So the customers are happy with the HSL.

Question no 10: Please rank from 1 to 5 the features that you like about loans in HDFC

TAT ________

Availability ________

Service ________

Rate of interest _________

Statistics

TAT Availability Service Rate of interestN Valid 85 88 86 86

Missing 16 13 15 15Mean 3.44 3.82 3.22 3.40Median 4.00 3.00 3.00 4.00Mode 4 5 3(a) 4Std. Deviation 1.248 4.430 1.375 1.348

78

TAT

Frequency Percent Valid PercentCumulative

PercentValid 1 5 5.0 5.9 5.9

2 19 18.8 22.4 28.2

3 16 15.8 18.8 47.1

4 24 23.8 28.2 75.3

5 21 20.8 24.7 100.0

Total 85 84.2 100.0Missing System 16 15.8Total 101 100.0

Availability

Frequency Percent Valid PercentCumulative

PercentValid 1 7 6.9 8.0 8.0

2 20 19.8 22.7 30.7

3 20 19.8 22.7 53.4

4 14 13.9 15.9 69.3

5 26 25.7 29.5 98.9

43 1 1.0 1.1 100.0

Total 88 87.1 100.0Missing System 13 12.9Total 101 100.0

Service

Frequency Percent Valid PercentCumulative

PercentValid 1 11 10.9 12.8 12.8

2 17 16.8 19.8 32.6

3 23 22.8 26.7 59.3

4 12 11.9 14.0 73.3

5 23 22.8 26.7 100.0

Total 86 85.1 100.0Missing System 15 14.9Total 101 100.0

79

Rate of interest

Frequency Percent Valid PercentCumulative

PercentValid 1 10 9.9 11.6 11.6

2 15 14.9 17.4 29.1

3 14 13.9 16.3 45.3

4 25 24.8 29.1 74.4

5 22 21.8 25.6 100.0

Total 86 85.1 100.0Missing System 15 14.9Total 101 100.0

0%10%20%30%40%50%60%70%80%90%

100%

Percentages

Poor Good Execellent

Performance of Loans

Rate of Interest

Service

Availability

TAT

A similar interpretation like Q8,but here I have amalgamated all the scales from (1-5).Here

we can see that service is the most important factor and the customers are not happy with the

service provided by the loans department in HDFC occupying major chunk of the bar in the

poor.And in the excellent and very god bar u can see the arte of interest and TAT occupying

most of the area.So we can conclude saying the loans department need to work hard with the

service they give to their customers.

Question no 11:Rate on a 5point rating scale your preferences regarding the

Savings/Current A/C

Accessibility _______

80

Flexibility _______

Features ________

Service ________

Question no 12: A bank that you would prefer other than HDFC

ICICI Andhra Bank

SBI IDBI

ING Vysa

Age Total

Under 18between 18 to 25

between 25 to 35

between 35 to 50

between 50 to 75

ICICI Count 0 5 17 3 4 29 % within which bank

would you prefer .0% 17.2% 58.6% 10.3% 13.8% 100.0%

% within age .0% 21.7% 34.7% 15.8% 57.1% 29.3% % of Total .0% 5.1% 17.2% 3.0% 4.0% 29.3%IDBI Count 0 1 7 1 0 9 % within which bank

would you prefer .0% 11.1% 77.8% 11.1% .0% 100.0%

% within age .0% 4.3% 14.3% 5.3% .0% 9.1% % of Total .0% 1.0% 7.1% 1.0% .0% 9.1%Andhra Count 0 3 5 3 2 13 % within whcich bank

would you prefer .0% 23.1% 38.5% 23.1% 15.4% 100.0%

% within age .0% 13.0% 10.2% 15.8% 28.6% 13.1% % of Total .0% 3.0% 5.1% 3.0% 2.0% 13.1%ING Count 0 3 3 5 1 12 % within whcich bank

would you prefer .0% 25.0% 25.0% 41.7% 8.3% 100.0%

% within age .0% 13.0% 6.1% 26.3% 14.3% 12.1% % of Total .0% 3.0% 3.0% 5.1% 1.0% 12.1%SBI Count 1 11 17 7 0 36 % within whcich bank

would you prefer 2.8% 30.6% 47.2% 19.4% .0% 100.0%

% within age 100.0% 47.8% 34.7% 36.8% .0% 36.4% % of Total 1.0% 11.1% 17.2% 7.1% .0% 36.4%Count 1 23 49 19 7 99% within which bank would you prefer 1.0% 23.2% 49.5% 19.2% 7.1% 100.0%

% within age 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

81

% of Total 1.0% 23.2% 49.5% 19.2% 7.1% 100.0%

Which bank would you prefer * Age Cross-tabulation

Age Total

Under 18between 18

to 25between 25

to 35between 35

to 50between 50

to 75Which bank would you prefer

ICICI 0 5 17 3 4 29

IDBI 0 1 7 1 0 9

ANDHRA 0 3 5 3 2 13

ING-VYSA 0 3 3 5 1 12

SBI 1 11 17 7 0 36Total 1 23 49 19 7 99

Yet a different way to analyze the competition of HDFC bank with the other competitors in

the market. Through this question I wanted to see which is the other bank that the HDFC

users prefer so that I could conclude a specific bank and tell the HDFC to use a particular

strategy where it could over come its loop holes. And with a combined effect of age with this

question we can figure out which target group to use which strategy to survive the

competition. So in this case you can see out of a sample size of 101 SBI has a frequency of

36 with ICICI being second having a count of 29.

RECOMMENDATIONS

More number of ATMs in the city.

82

More aggressive sale is needed for professors, lecturers, and staff members who the best

customer of savings accounts. A Special students' savings account with AQB of fewer

amounts could be launched Savings account for working professionals and self employed

youths could be started with facilities like free registration in top business consultancies,

job consultancies, hassle-free personal loans, free de-mat account and discounted

membership in some reputed clubs.

Ensure the best after sale services by replacing the faulty ones immediately after getting

complain.

A group promotional activity aiming, encouraging card holder to use their card to its

fullest should be undertaken.

The timings of the bank to be extended from 8a.m to 8p.m.

With every purchase, card holders be awarded with some credit points and on the end of

every quarter , special gifts should be given or discount offers on some items produced by

some company can be given, which will be sponsored by the producer, the shopkeeper

and the banker.

There should be no hidden charges and to be explained when demanded for.

LIM1TATIONS OF THE RESEARCH

Survey was only conducted in NOIDA

83

Only 101 questionnaires were filled in different age and occupation groups due to time

constraint.

Combining question 1 and 2 it becomes obvious that most people are satisfied about the

SB/CA /Sal A/C of HDFC. The interpretation doesn’t reveal the satisfaction of other

products.

Since 70% of my sample are Sal A/C holders so its wrong to conclude that very few

people use FD, Mutual Fund, D-mat.

Since my study did not include the income of the people I was not able to categorize the

use of the product with the income group and study if any correlation existed.

84

SWOT ANALYSIS

In applying the SWOT analysis it is necessary to minimize or avoid both weaknesses and threats

of HDFC bank. Weaknesses should be looked at in order to convert them into strength. Like

wised, threat should be converted into opportunities. Lastly, strengths and opportunities should

be matched to optimize the potential of HDFC bank.

85

Swot Analysis….

Strength:

Low average loan to value ratio & debt adverse nature of borrowers.

Growth in urban market/ salaried class & Quality of underwriting.

Strong Brand - customer base of over 2million.

The bank has the power attorney of the client and executes on his/her behalf once it

gets written instructions from its clients.

It offers custodial services which will include services such as receiving dividend

of shares and other entitlements such as buyback proposals.

Customers don’t have to worry about tracking dividends of companies or

subscribing to buybacks.

No threshold limit for offering its services.

Cash of Rs. 100000 delivered at your doorstep

Offers free Gold International Debit card, a free International Titanium card or a free

international Gold Credit card.

It offers e-broking

Free standing instructions available only in HDFC Bank.

Avail of locker at just 50 % of the annual fee.

Preferential pricing for loan against securities, home loans.

As a preferred customer you are entitled to a waiver of up to Rs. 2000 per annum on a

host of service charges like

Demand Draft/ Managers Cheque charges

Inter-branch funds charges

Stop payment charges

Cheque return/collection charges

DD cancellation charges

Hold mail charges

Duplicate statement charges

Certificate of balance charges

Recovery of old records charges

FIRC charges

86

.

Weakness:

Charges customers on the various services it offers.

The bank does not charge any fixed fees, it earns commission on the products the

customer buys.

Cash withdrawal limit up to Rs. 25000/day.

Door step banking available only twice a month and only in metros.

Does not provide 24 hours banking transactions by phone.

Does not provide 365 days of banking transactions

Not so focusing more on rural areas.

Opportunity

Growth in demand-driven by improved affordability

Rising disposable income

Affordable interest rates

Generally stable property prices

Fiscal incentives on both interest and principal repayments.

Increasing urbanization & Increased network of outlets.

Can target to the small investors not only in urban areas but also to the rural area.

Can Provide a zero balance savings account to the customers

Can provide the interest on deposits as provided by the co-operatives

Can trap the students segment by providing a very low AQB or Zero balance.

HDFC Bank can have a professional savings account with the following benefits.

Free registration in reputed consultancies.

Easy personal loan, car loans, to the account holder.

A D-mat account free with every current & savings accounts (without any registration fee

and stamp fee)

Free membership facility to the top rated club members in India.

Threats

87

Competition from other banks is very high .

Some banks provide 24 hour banking transaction over phone.

Some banks provide transactions for 365 days.

Less number of branches as compared to others.

As third party cash deposits is not accepted there is a fear that HDFC bank may loose

some customers.

88

A Comparative Study among the Emerging Commercial Banks …

Indian banking sector: Is it on the right track?

Performance indicators

Commonly-used measures to asses the performances of the banking sector are: Return on Asset

(ROA), Operating Profit Ratio (OPR), Net Interest Margin (NIM), Operating Cost Ratio (OCR)

89

and Staff Expenditure Ratio (SER). The first-two are generally considered profitability

measures, while the others, the efficiency indices.

Overall performance improvement

A comparison of performance indices that the reform measures helped to improve the overall

performance of industry. This is reflected in the improvement of all performance indicators

barring the net interest margin. Interestingly, the ROA, treated as a proxy for risk-adjusted

return, increased from (-) 0.28 percent in the pre-liberalization period to 0.79 percent (against

more than 1 percent in other merging markets such as Singapore, Malaysia and Korea) post-

liberalization, indicating a significant rise in the ability of banks to convert their assets into net

earnings. Another interesting aspect is that despite a marginal fall in the net interest margin from

2.84 to 2.73 (which might be due to policy change), the banking industry has managed to

improve its OPR by increasing its non-interest fee-based income and reducing its operating

costs/staff expenses. The evidence indicates that after the reform initiation period, the banks have

increasingly been providing off balance sheet items such as derivatives, which generate major

part of non-interest income. The proportion of operating cost/staff expenses has declined mainly

due to computerization and the voluntary retirement scheme.

Apart from the overall improvement across the board, another important

criterion to evaluate the success story is to check whether the competitive force has led to

any convergence in the performance of different ownership group’s in the post-

liberalization period. Exposure to the competitive forces is often argued as a panacea to

shake poorly performing banks out of their slumber. Although the public banks compared

poorly with private banks during the initial period , they made a significant improvement

in the latter period by responding well to the new challenges of competition and

Consolidation, mostly following a gradual and cautious approach . The pay off is well

reflected in the increase in their ROA, OPR and NIM. Some possible reasons for the

better performance of public banks could be

90

They still undertake most of the government borrowing programmers, thereby

generating significant fee based income;

The market discipline imposed by the listing of most public sector banks has also

probably contributed to this improved performance; and

The reform measures have changed their business strategies particularly greater

diversification of non-fund based business and emergence of treasury and foreign

exchange business.

The study reveals that the OPR across four ownership groups tend to converge. The NIM

tends to converge across private and public sectors while the OCR continues to remain

significantly different across ownership groups.

91

Conclusion….

Conclusion

The SWOT analysis shows the competitive strategy of HDFC bank especially in

widening its networks, continuous up gradation of technology (Fine wire by i-flex) for reduction

92

in OCR and its specific geographical(Rural banking),demographical strategy will bring to serve

as a best bank in India.

The Competitor Analysis show that it has to focus more to increase its NIM. The percentage of

net IPA and capital adequacy ratios are very good relative to its competitors.

The survey throws light on various Issues that the customer faces in the market.

Analyzing the findings it can be said that good customer relationship raises awareness among the

people. There are tough competitions and thus there exists a lot of room to improve so as to

become the market leader from all aspects. The only thing is the making of and implementation

of the proper strategy in the best effective way. By understanding the steps of competitors before

they were implemented is the way lead to the market.

The HDFC Bank believes in adopting and adhering to the best corporate governance practices

and continuously benchmarking itself against each such practices in the industry. The Bank

understands and respects its fiduciary role and responsibility to shareholders and strives hard to

meet their expectations. I believe that the best board practices. Transparent disclosures and

shareholder empowerment are necessary for creating shareholder value. The cardinal principles

such as independence, Accountability, responsibility, transparency ,fair and timely disclosures,

credibility serve as the means for implementing the philosophy of corporate governance in letter

and in spirit. The banks employees are very friendly among their coordinates and also to their

customers.

BIBLIOGRAPHY

93

A. Annual Report of HDFC Bank

B. Marketing Management by Philip Kotler &Keller

C. Marketing Research by Naresh Malhotra

D. Websites:-

www.hdfcbank.com

www.icicibank.com

www.utibank.com

www.sbi.com

www.google.com

www.kotak.com

www.yahoofinance.com

94

Annexure

QUESTIONNAIRE

1. How long have you been using a product of HDFC__________

95

2. Tick the most widely used product by you among the following. D-mat/Hsl A/c FD Mutual Fund

Credit Cards SB/CA/Sal A/C Loans

3 Comparing other bank products the products of HDFC are

Strongly satisfactory

Satisfactory

Dissatisfactory

Strongly Dissatisfactory

4.The service of which among the following products do you prefer in HDFC (Tick as many as below) D-mat/

HSL A/c

Credit Card

FD

SB/CA/Sal

A/c

Mutual

Fund

Loans

5 Basing on what parameters do you choose a product

Service

Rate of interest/ return

Brand

Features

Market Value

Accessibility

6. Analyze the performance of Credit Cards on the following

parameters

Convenient ___ ___ ___ ___ ___ ___ ___ ___ ___

___ Not Convenient

Costly ___ ___ ___ ___ ___ ___ ___ ___ ___ ___

___ Less costly

Efficient ___ ___ ___ ___ ___ ___ ___ ___ ___ ___

__Less Efficient

Aware ___ ___ ___ ___ ___ ___ ___ ___ ___ ___

___ Not Aware

96

Low TAT ___ ___ ___ ____ _____ ___ ___ ___ ____ ____

___ High

7 .The sweep-in facility of FD is ___________ to the customers

Less Beneficial More

Beneficial

Beneficial Most

Beneficial

8. Rate the following features of FD on a scale of 5. (1=Poor and

5= excellent)

Altering period of deposit _____

Maturity and payment instructions _____

Principal amount _____

Roll over mode _____

9.Rate on a scale of 5 the performance of HSL as a suitable room

for investment __________________________

10. Please rank from 1 to 5 the features that you like about loans in

HDFC

TAT ________

Availability ________

Service ________

Rate of interest _________

11. Rate on a 5point rating scale your preferences regarding the

Savings/Current A/C

Accessibility _______

Flexibility _______

Features ________

Service ________

97

12. A bank that you would prefer other than HDFC

ICICI IDBI

Andhra Bank ING Vysa

SBI

Personal Information

Name:

Age: Sex: M F

Ph:

Email id:

98