UNDER THE GUIDANCE OF PROF. RESHMA

HDFC BANK

2

Royal College of Arts, Science and Commerce SUBJECT: 4.1 (UNIVERSAL BANKING)

PROJECT ON : HDFC BANK

S.Y.BANKING & INSURANCE

SEMESTER – 4

(2010-2011)

GROUP NO: 02

AZIM SAMNANI

(37)

MANISHA SINGH

(13)

SUNITA GUPTA

(04)

NAZLEEN SHAIKH

(15)

HDFC BANK

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We would like to express our profound gratitude to our project guide

Prof. RESHMA, who has so ably guided our research project with his vast fund of

knowledge, advice and constant encouragement, which made us, think past the

difficulties and lead us to successful completion of the project.

We have tried to cover all the aspects of the project & every care has been taken

to make the project faultless. We have tried to write the project in our words as

far as possible and simplified all the concepts by presenting it in a different form.

We’ll be looking forward in future for such type of project. We are eagerly waiting

for fruitful comments & constructive suggestions.

HDFC BANK

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SR.NO TOPIC PAGE.NO

1. HDFC BANK 5

2. INTRODUCTION 6

a. HISTORY 7

b. BACKGROUND 7

c. PROMOTER 8

d. BUSINESS FOCUS 8

e. CAPITAL STRUCTURE 8

f. AMALGAMATION OF TIMES BANK & CENTURION BANK OF PUNJAB WITH HDFC BANK

9

g. DISTRIBUTION NETWORK 9

h. MANAGEMENT 10

i. TECHNOLOGY 11

3. BUSINESS PROFILE 12

4. RATINGS & AWARDS 14

5. AWARDS & ACCOLADES 15

6. INVESTMENT SERVICES 17

7. CREDIT CARD DO’S & DON’TS 18

8. HOME LOANS FROM HDFC BANK 21

9. HDFC BANK PERSONAL LOAN 24

10. HDFC ACTIVITIES 26

11. HDFC MUTUAL FUND 29

12. HDFC BANK PRODUCT & SERVICES 31

13. HDFC BANK ONLINE BANKING 33

14. HDFC BANK CUSTOMER CARE 34

15. ARTICLE 38

16. HDFC TO DIVERSIFY LENDING TO MFIS 43

17. QUESTIONARE 44

18. CONCLUSION 47

19. WEBLIOGRAPHY 48

HDFC BANK

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HDFC Bank

Type Public (BSE: 500180, NYSE: HDB)

Industry Banking Financial services

Founded August 1994

Founder(s) BibuVerghese

Headquarters Mumbai, India

Key people C.M. Vasudev (Chairman) AdityaPuri (MD)

Revenue 20,266.99 crore (US$ 4.6 billion) (2010)

Operating income 4,419.01 crore (US$ 1 billion) (2010)

Profit 3,032.92 crore (US$ 688.47 million) (2010)

Total assets US$ 39.723 billion (2009)

Total equity 21,158.15 crore (US$ 4.8 billion) (2010)

Employees 51,888 (2010)

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INTRODUCTION

(BSE: 500180, NYSE: HDB) is a major Indian financial services

company based in India, incorporated in August 1994, after the Reserve Bank of

India allowed establishing private sector banks. The Bank was promoted by the

Housing Development Finance Corporation, a premier housing finance company

(set up in 1977) of India. HDFC Bank has 1,725 branches and over 4,232 ATMs,

in 779 cities in India, and all branches of the bank are linked on an online real-

time basis. As of 30 September 2008 the bank had total assets of Rs.1006.82

billion.[4]

For the fiscal year 2008-09, the bank has reported net profit of

2,244.9 crore (US$ 509.59 million), up 41% from the previous fiscal. Total

annual earnings of the bank increased by 58% reaching at 19,622.8 crore

(US$ 4.45 billion) in 2008-09.

In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total

branches to more than 1,000. Though, the official license was given to Centurion

Bank of Punjab branches, to continue working as HDFC Bank branches, on May

23, 2008

Housing Development Finance Corporation Limited, more popularly

known as HDFC Bank Ltd, was established in the year 1994, as a part of the

liberalization of the Indian Banking Industry by Reserve Bank of India (RBI).

It was one of the first banks to receive an „in principle‟ approval from RBI, for

setting up a bank in the private sector. The bank was incorporated with the

name „HDFC Bank Limited‟, with its registered office in Mumbai. The

following year, it started its operations as a Scheduled Commercial Bank.

HDFC BANK

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AMALGAMATIONS

In 2002, HDFC Bank witnessed its merger with Times Bank Limited (a

private sector bank promoted by Bennett, Coleman & Co. / Times Group). With

this, HDFC and Times became the first two private banks in the New

Generation Private Sector Banks to have gone through a merger. In 2008, RBI

approved the amalgamation of Centurion Bank of Punjab with HDFC Bank.

With this, the Deposits of the merged entity became Rs. 1,22,000 crore, while

the Advances were Rs. 89,000 crore and Balance Sheet size was Rs. 1,63,000

crore.

HISTORY

HDFC Bank was incorporated in 1994 by Housing Development Finance

Corporation Limited (HDFC), India's largest housing finance company. It was

among the first companies to receive an 'in principle' approval from the Reserve

Bank of India (RBI) to set up a bank in the private sector. The Bank started

operations as a scheduled commercial bank in January 1995 under the RBI's

liberalisation policies.

Times Bank Limited (owned by Bennett, Coleman & Co. / Times Group) was

merged with HDFC Bank Ltd., in 2000. This was the first merger of two private

banks in India. Shareholders of Times Bank received 1 share of HDFC Bank for

every 5.75 shares of Times Bank.

In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total branches

to more than 1,000. The amalgamated bank emerged with a base of about Rs.

1,22,000crore and net advances of about Rs.89,000 crore. The balance sheet size

of the combined entity is more than Rs. 1,63,000 crore.

BACKGROUND

The Housing Development Finance Corporation Limited (HDFC) 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, as part of RBI‟s

liberalisation of the Indian Banking Industry in 1994. The bank was

incorporated in August 1994 in the name of „HDFC Bank Limited‟, with its

registered office in Mumbai, India. HDFC Bank commenced operations as a

Scheduled Commercial Bank in January 1995.

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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, 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.

CAPITAL STRUCTURE

As on 30th September, 2010 the authorized share capital of the Bank is Rs.

550 crore. The paid-up capital as on said date is Rs. 462,60,48,500/-

(46,26,04,850 equity shares of Rs. 10/- each). The HDFC Group holds 23.49

% of the Bank's equity and about 17.54 % of the equity is held by the

ADS/GDR Depositories (in respect of the bank's American Depository Shares

(ADS) and Global Depository Receipts (GDR) Issues). 29.72 % of the equity

is held by Foreign Institutional Investors (FIIs) and the Bank has 4,10,885

shareholders.

The shares are listed on the Bombay Stock Exchange Limited and The

HDFC BANK

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National Stock Exchange of India Limited. The Bank's American Depository

Shares (ADS) are listed on the New York Stock Exchange (NYSE) under the

symbol 'HDB' and the Bank's Global Depository Receipts (GDRs) are listed on

Luxembourg Stock Exchange under ISIN No US40415F2002.

AMALGAMATION OF TIMES BANK AND CENTURION

BANK OF PUNJAB WITH HDFC BANK

On May 23, 2008, the amalgamation of Centurion Bank of Punjab with

HDFC Bank was formally approved by Reserve Bank of India to complete

the statutory and regulatory approval process. As per the scheme of

amalgamation, shareholders of CBoP received 1 share of HDFC Bank for

every 29 shares of CBoP.

The merged entity will have a strong deposit base of around Rs. 1,22,000

crore and net advances of around Rs. 89,000 crore. The balance sheet size of

the combined entity would be over Rs. 1,63,000 crore. The amalgamation

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

geographic reach, and customer base, and a bigger pool of skilled manpower.

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. This was the first merger of two private banks in the New

Generation Private Sector Banks. As per the scheme of amalgamation

approved by the shareholders of both banks and the Reserve Bank of India,

shareholders of Times Bank received 1 share of HDFC Bank for every 5.75

shares of Times Bank.

DISTRIBUTION NETWORK

HDFC Bank is headquartered in Mumbai. As on September 30, 2010, the

Bank has a network of 1765 branches in 819 cities across India. All branches

are linked on an online real-time basis. Customers in over 800 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

HDFC BANK

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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 to various leading stock

exchanges, the Bank has branches in centres where the NSE / BSE have a

strong and active member base.

The Bank also has a network of 4721 ATMs across India. 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.

MANAGEMENT

Mr. C.M. Vasudev has been appointed as the Chairman of the Bank with

effect from 6th July 2010 subject to the approval of the shareholders. Mr.

Vasudev has been a Director of the Bank since October 2006. A retired IAS

officer, Mr. Vasudev has had an illustrious career in the civil services and has

held several key positions in India and overseas, including Finance Secretary,

Government of India, Executive Director, World Bank and Government

nominee on the Boards of many companies in the financial sector.

The Bank‟s Managing Director, Mr. Aditya Puri, has been a professional

banker for over 25 years. Before joining HDFC Bank in 1994, he was

heading Citibank‟s operations in Malaysia.The Bank‟s Board of Directors is

composed of eminent individuals with a wealth of experience in public

policy, administration, industry and commercial banking. Senior executives

representing HDFC are also on the Board.

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Senior banking professionals with substantial experience in India and abroad,

head various businesses and functions and report to the Managing Director.

Given the professional expertise of the management team and the overall

focus on recruiting and retaining the best talent in the industry, the bank

believes that its people are a significant competitive strength.

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 core banking 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.

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BUSINESS PROFILE

HDFC Bank caters to a wide range of banking services covering commercial

and investment banking on the wholesale side and transactional / branch

banking on the retail side. The bank has three key business segments:

a. Wholesale Banking

The Bank‟s target market is primarily large, blue-chip manufacturing

companies in the Indian corporate sector and to a lesser extent, small &

mid-sized corporates 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 corporates

including multinationals, companies from the domestic business houses

and prime public sector companies. It is recognised as a leading

provider of cash management and transactional banking solutions to

corporate customers, mutual funds, stock exchange members and

banks.

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a. 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, corporate 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.

b. Retail Banking 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 customers through the growing branch network, as well as

through alternative delivery channels like ATMs, Phone Banking,

NetBanking 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 March 2010, the bank had a total card

base (debit and credit cards) of over 14 million. The Bank is also one

of the leading players in the “merchant acquiring” business with over

90,000 Point-of-sale (POS) terminals for debit / credit cards acceptance

at merchant establishments. The Bank is well positioned as a leader in

various net based B2C opportunities including a wide range of internet

banking services for Fixed Deposits, Loans, Bill Payments, etc.

HDFC BANK

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RATING /AWARDS

Credit Rating

The Bank has its deposit programs 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 investment risk." 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

"AAA (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".

The Bank also has its long term unsecured, subordinated (Tier II) Bonds rated

by CARE and Fitch Ratings India Private Limited and its Tier I perpetual

Bonds and Upper Tier II Bonds rated by CARE and CRISIL Ltd. CARE has

assigned the rating of "CARE AAA" for the subordinated Tier II Bonds while

Fitch Ratings India Pvt. Ltd. has assigned the rating "AAA (ind)" with the

outlook on the rating as "stable". CARE has also assigned "CARE AAA

[Triple A]" for the Banks Perpetual bond and Upper Tier II bond issues.

CRISIL has assigned the rating "AAA / Stable" for the Bank's Perpetual Debt

programme and Upper Tier II Bond issue. 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 one of 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 was assigned a 'CRISIL GVC

Level 1' rating in January 2007 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.

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AWARDS AND ACCOLADES :

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 goal.

Over the years, the Bank has received recognition and awards from several

leading organizations and publications, both domestic and international

(details are available on

http://www.hdfcbank.com/aboutus/awards/default.htm).

Some important awards that the Bank won:

Forbes Asia Fab 50 Companies - 5th year in

a row

NDTV Business Leadership Awards 2010 Best Private Sector Bank

The Banker Magazine World's Top 1000 Banks

MIS Asia IT Excellence Award 2010 BEST BOTTOM-LINE I.T.

Category

Dun & Bradstreet Banking Awards 2010 - Overall Best Bank

- Best Private Sector Bank

- Best Private Sector Bank in

SME Financing

IDRBT Technology 2009 Awards IT Infrastructure / Use of IT/IT

Governance

ACI Excellence Awards 2010 Highly Commended in Asia

Pacific – HDFC Bank

FE-EVI Green Business Leadership Award 2010 Best performer in the Banking

category

Avaya Global Connect 2010 Customer Responsiveness Award

- Banking & Financial

Services category

Forbes Top 2000 Companies Our Bank at 632nd position and

among 130 Global High

Performers

Financial Express - Ernst Young Survey 2009-10 Best New Private Sector Bank

Asian Banker Excellence Awards 2009

Lending

entation

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The Asset Triple A Awards Best Cash Management Bank in

India

Euromoney Private Banking and Wealth

Management Poll 2010

Best Local Bank in India (second

year in a row) & Best Private

Banking Services overall.

Financial Insights Innovation Awards 2010 Innovation in Branch Operations

- Server Consolidation Project

Global Finance Award Best Trade Finance Provider in

India

IBA Banking Technology Awards 2009 Best Risk Management Initiative

& Best Use of Business

Intelligence

SPJIMR Marketing Impact Awards (SMIA)

2010

2nd

Prize

Business Today Best Employer Survey Listed in top 10 Best Employers

in the country

Awards for our MD, Mr. Aditya Puri:

Institutional Investor Magazine Poll 2010 Aditya Puri among Asian

Captains of Finance

Business India Businessman of the Year

2009

GQ India's Man of the Year 2009 Business Category

FE Best bank Awards 2009 Best Innovator of the year

award

Best CEO in India 2009 Finance Asia annual poll of

Investors and Analysts

The Economic Times Corporate Dossier’s

2009

List of India Inc's 100 Most Powerful

CEOs

Aditya Puri is 22nd

on the list

HDFC BANK

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INVESTMENT SERVICES

Overview

HDFC BANK offers cutting edge investment and merchant banking services to a

wide range of corporates of different sizes across sectors. We have excellent

relationships with domestic and international banks, financial institutions, mutual

funds, insurance companies, PE funds,VCfunds,sovereign funds, multilateral

development agencies etc, which enable us to arrange diverse debt and equity

funding requirements of corporates in a cost -effective and timely manner.

The products offered by the Investment Banking Division include:

Project appraisal , structured finance ,loan syndication and debt capital

markets

Project finance

INR and Foreign Currency Loans

External Commercial Borrowings (ECBs) and Export Credit Agency

(ECA) backed Loans

FCNR (B) Loans

Asset Backed Loans

Infrastructure advisory

Placement of CPs, NCDs and bonds

Equity Placement

Private Equity Placement with P/E, V/C, Buy Out Funds

Placement to institutional investors under SEBI QIP Guidelines

Mezzanine Finance

M&A and Corporate Advisory Services

Domestic & Cross-Border mergers and acquisitions - Providing end to

end solutions including identification of target, valuation, assistance in

due diligence and fund raising

Business Spinning off/Hiving off

Capital Structuring and Restructuring

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Capital Market Advisory Services

Rights Issues

Open Offers

Share Buy Back

De listing

Follow-on Public Offerings

BRLM for IPOs

CREDIT CARD DO’S AND DONT’S

Protect yourself from credit Card fraud by following the simple suggestions

given below:

Do's

If you lose your credit card, please report the loss immediately.

When you dispose of a card at the time of renewal/upgradation, please make

sure to cut it diagonally before disposal.

Please keep your card in a safe place. Treat it as carefully as you would treat

your cash.

Please ensure the card is swiped in your presence.

Please make sure you conduct any ATM transaction in complete privacy.

If your card is held back by the ATM, please inform the concerned Call

Center/Branch personnel immediately.

Before you use an ATM, please ensure that there are no strange objects in the

insertion panel of the ATM.

Please remember to take your Debit/Credit Card back after completing your

ATM transaction.

If you spot any suspicious looking people at or around any ATM, please

inform the security guard immediately.

Please change your ATM PIN once every 3 months.

When you make any transactions, please make sure that the chargeslip is

complete before signing.

Please pay attention to your billing cycles. Please follow up withHDFC Bank

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Credit Cards Customer Care if your bills don't arrive on time. A missing

credit card bill could mean an identity thief has taken over your account and

changed your billing address to cover his tracks.

Please be wary of promotional scams. Identity thieves may use phony offers

to get you to give them your personal information.

Please secure all personal information in your home, especially if you have

roommates, employ outside help or are having service work done in your

home.

Please sign your credit cards as soon as you get them.

Please check your cards periodically to make sure none are missing.

Please destroy and dispose of copies of receipts, airline tickets, travel

itineraries and anything else that displays your card numbers.

Please keep items with personal information in a safe place. Please keep a list

of all credit cards, account numbers, expiry dates, and the customer service

phone numbers in a secure place so that you can quickly contact HDFC Bank

Credit Cards Customer Care in case your cards are lost or stolen.

Dont's

Please do not disclose your Credit Card Number/ATM PIN to anyone.

Please do not hand over the card to anyone, even if he/she claims to represent

the Bank.

Never get carried away by strangers who try to help you use the ATM

machine.

Please do not write the ATM PIN on the card or on a paper which you carry

along with the card.

Do's and don'ts for online transactions:

Always use HDFC Bank's Net safe feature for making online transactions. It

is safe and secure. If you have not registered for it, please visit the Net safe

page.

Preferably transact on sites which mandate validation of CVC2 value (the last

3 digits after the card number, mentioned on the signature panel at the back of

the card) or at websites that are certified by Verified-by-Visa or MasterCard

Secure Code.

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Please be careful when providing personal information online. Never give out

your personal or account information to anyone you do not trust. Please make

sure that you verify a business's legitimacy by visiting its web site, calling a

phone number obtained from a trusted source, and/or checking with a reliable

resource.

Please keep your passwords secret. Some online stores may require you to

register with them via a username and password before buying. Online

passwords should be kept secret from outside parties the same way you

protect your ATM PIN.

Please look for signs of security. Identify security clues such as a lock image

at the bottom of your browser, or a URL that begins with https://. These signs

indicate that only you and the merchant can view your payment information.

Never send payment information via email. Information that travels over the

Internet (such as email) is not fully protected from being read by outside

parties. Most reputed merchant sites use encryption technologies that will

protect your private data from being accessed by others as you conduct an

online transaction.

Please keep a record of your transactions. Just as you save store receipts, you

should keep records of your online purchases. Back up your transaction by

saving and/or printing the order confirmation.

Please review your monthly account statement thoroughly. Immediately

investigate suspicious activity to prevent any possible additional fraud before

it occurs. Promptly notify your financial institution of any suspicious email

activities.

Please be wary of promotional scams. Identity thieves may use phony offers

to get you to give them your personal information.

In case you use your Credit Card for online transactions in Internet cafes or

public-use computers, please ensure that you erase the history of websites

visited/accessed.

Please open and respond only to emails that pass some basic tests, such as:-

Is the email from somebody you know?

Have you received emails from this sender before?

Are you expecting email with an attachment from this sender?

Does email from this sender with the contents described in the subject line

and the name of the attachment make sense?

Does this email contain a virus?

HDFC BANK

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HOME LOANS FROM HDFC

16 June, 2005: The house of your dreams and loans for it at customized repayment

periods which suits your capabilities! That is exactly what HDFC Bank has in store

for you. With HDFC home loans you can buy an exciting apartment, bungalows, or

even row houses anywhere in the country.

The convenience HDFC offers is the nature of repayment which can be customized

to suit your priorities. You can either apply for HDFC home loan individually or

jointly. The people who are to own the property should be co-applicants, but co-

applicants need no be co-owners, as per stipulations.

The loan amount that can be availed has been capped at 85% of the cost of the

property, which includes the land cost. The maximum amount that can be availed

from HDFC is Rs 1 crore. The loan amount would be decided by the bank taking

into account the applicants capabilities like income, age, spouses income, assets,

number of dependents etc. The loan calculator on the HDFC web site would give

you an indication as to the amount you would have to pay monthly.

With HDFC, the applicants can opt for fixed rate loans and adjustable or floating

rates. Under the fixed rate, the rate applicable on the date of disbursement would

remain for the entire duration of the loan. Under floating rates, the interest rate

may go up or down.

Before the final disbursement is done by the bank, the applicants pay a pre-equated

monthly installment for the amount if loan disbursed. The monthly installment

amount depends on interest rate, amount if loan availed and the tenure of the loan

opted for.

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The security required is first mortgage of the to be financed property. If any

additional income is accrued during the loan tenure, the applicants are free to repay

the loan amount earlier than the scheduled tenure. The charge for this is currently

2% of the prepaid amount. Normal tax benefits apply. For example if the interest

you repay is rupees one and a half lakh, the tax you save would be Rs. 47,250 per

annum.

The HDFC insists that property is insured against fire and other hazards during the

loan term, with the bank as beneficiary. HDFC also assists its customers on

property dealings.

All expert suggestions are given for a wide range of things including vaastu, legal

aspects and project.

Persons of Indian Origin (PIO) holding foreign passports are also eligible to avail

the housing loan. If a customer‟s status as an applicant changes during the loan

tenure from Non Resident Indian to resident Indian, the bank works out the revised

payment schedule as per the customer‟s new financial status. The new rate of

interest would be the rate for resident Indians, which means the outstanding

balance would be charged with revised rate.

A unique offering of HDFC is the two-in-one loans. The customer can break the

loan into two segments with one part being charged with fixed rates and another

part with floating rates, thus minimizing the risk factor.

The HDFC charges a fee of 0.5% of the loan amount and acceptance of the loan

offer another 0.5% is charged as administrative fee. These two can be combined

and paid together at the time of loan application itself.

Loan application can be made even before selecting the house or before the

construction has started.

Supporting documents are also required. The allotment letter of the cooperative

society, the copy of the drawings of the proposed construction, agreement for sale,

sale deed and detailed estimate cost from architect or engineer has to be submitted.

For those who haven‟t completed a year in present job or business/profession,

details of the previous jobs/profession and reasons of change and designations held

have to be submitted.

Self-employed should submit balance sheet and profit and loss accounts as well as

It returns filed as certified by a chartered accountant.

HDFC BANK

23

HDFC also offers loans for refurbishing you home, which would add value to our

residence. You get loans for external repairs, roofing and water proofing, painting,

plumbing and electrical works, tiling, flooring paving of compound wall and even

for construction of a borewell. Cent per cent finance is given even for improving

rented properties if the extension of mortgage of property already in favour of the

bank is provided as security. In other cases, 70% finance is available. Rs 10 lakh is

the maximum home improvement loan amount. Maximum loan tenure has been

fixed at 15 years. One per cent of the loan amount is charged as processing fee.

For home extension loans offered by the bank, a maximum 85% of the cost of the

extension is the ceiling. Maximum amount that can be availed is Rs 1 crore and

maximum tenure of repayment allowed is 20 years.

To apply, Xerox copies of the employment contract, latest salary slip, work permit,

Identity card as well as allotment letter issued by the housing cooperative society

and copy of drawing of the proposed extension should be submitted.

The short-term bridging loan enables you to shift from present residence and to a

new one. The loan is of great help during the interim period. The maximum loan

amount is 85% of the value of existing loan, subject to a ceiling of Rs 1 crore.

0.5% of the loan amount is charged as fee.

The Bank also finances land purchase. Maximum loan amount is 70% of the land

cost. A maximum tenure of 10 years has been fixed for the loan. Processing fee is

0.5% of the loan amount.

HDFC Bank also provides loans for self-employed to build or renovate

office/residential premises. Doctors, CAs and lawyers are eligible. The fee charged

is 1% of loan amount. HDFC lends 85% of the cost of property subject to a ceiling

of Rs 1 crore. Maximum repayment period is 15 years. For HDFC home equity

loans, the maximum amount that can be availed is 40% of market value of the

property, with a cap of Rs 50 lakh. Minimum amount is Rs 1 lakh. The market

value of the dwelling unit should be a minimum Rs 10 lakh. Maximum period of

loan is 15 years.

HDFC BANK

24

HDFC BANK PERSONAL LOAN

HDFC Bank, which was incorporated in 1994 and has a presence in over 700

Indian towns and cities, is one of the largest personal loan lenders in India. An

HDFC Bank personal loan can be taken for any purpose, whether it is a vacation or

wedding expenses. HDFC personal loans are available to both salaried and self-

employed applicants.

Features & Benefits of HDFC Bank Personal Loan

1. Low fixed interest rates on HDFC Bank personal loan

2. No guarantor/security/collateral required

3. No income documentation needed for existing HDFC home loan and HDFC Bank

car loan customers

4. Special offers for HDFC Bank salary account holders

5. Quick loan processing, minimum documentation and doorstep service for

customers

6. Payment protection insurance (credit shield) and personal accident cover can be

taken by applicant at nominal premium

Eligibility conditions for HDFC Bank Personal Loan

1. Age range : 21-60(Salaried), 25-65(Self Employed)

2. Minimum Experience : 2 years in employment and minimum 1 year in the current

organization (Salaried), 4 to 7 years(Self Employed Professionals), 3-5 years(Self

Employed Individuals)

3. Minimum income : Rs 10,000-15,000 monthly income (Salaried), Rs. 1 lakh

annual income(Self employed professionals and individuals)

HDFC BANK

25

Details of HDFC Bank Personal Loan. Use our calculator to compare offers from multiple

banks

Interest Rate (Monthly

reducing balance)

14% to 24% fixed

Processing Fees 2% to 2.5% of loan amount

Loan Tenure 1 year to 5 years

Pre-closure Charges 4% of pre-closed amount.

Loan Amount Rs. 1 lakh to Rs. 15 lakhs

Guarantor Requirement No guarantor required

Documents Proof of Identity (Passport Copy or Voters ID card or Driving

Licence)

Address Proof (Ration card or Phone/Electricity Bill or Rental

agreement or Passport copy or Trade licence or Sales Tax certificate)

Bank Statements (latest 3 months bank statement / 6 months bank

passbook)

Latest salary slip or current dated salary certificate with latest Form

16 (only for salaried)

Latest ITR along with computation of income, B/S & P&L a/c for the

last 2 yrs. certified by a CA(only for self-employed professionals and

individuals)

Qualification proof of the highest professional degree (only for self-

employed professionals)

Proof of continuation (Trade licence /Establishment /Sales Tax

certificate) (only for self-employed individuals)

HDFC BANK

26

HDFC ACTIVITIES

Net Banking :-

Lets you control your funds from anywhere in the world. Just switch on your

computer for any account details you may require and find it at your

fingertips.

Features and benefit

o View account balances and statements

o Transfer funds between accounts

o Create Fixed Deposits online

o Request a Demand Draft

o Pay bills

o Order a cheque book

o Request stop payment on a cheque

o Get up-to-the-second details on your account

o Anytime, anywhere access giving you complete control over your

finances

o No queues to stand in or turns to wait for

o Industry-standard technologies and infrastructures ensure highest

security

HDFC BANK

27

Secure access

Adding yet another layer to a secure banking experience for you, we have

initiated the Secure Access solution. This minimizes frauds and risks involved

with the online banking channels.

All you need to do is -

o Personalize an image

o Personalize text

o Answer 5 simple questions

o Share two contact numbers

How Secure Access works

Secure Access protects you from fraudsters and hackers with a 2-step

process.

o Screen 1 is where you key-in your customer ID

o Screen 2 is for your password

This is done as a security measure. On entering your customer ID, our back

office mechanism will verify if you are registered for Third Party Transfer.

o If you are not registered for Third Party Transfer, the next screen will

have a box to key-in your password

o If, however, you are registered for Third Party Transfers, an image

and text personalized during registration for Secure Access is shown

Transactions covered under Secure Access

o Funds transfer from one HDFC Bank Account to another HDFC Bank

Account holders (to distinct customer ID)

o Transfer from HDFC Bank Account to any other Bank's account

(RTGS and NEFT)

o Visa Money Transfer

o Third Party Demand Draft through NetBanking

HDFC BANK

28

ATMS

With over 4,865 ATMs present across India, you can withdraw cash and do much

more at HDFC Bank ATM. The sophisticated, computerized network gives you the

flexibility of accessing your account.

FEATURES AND BENEFITS

o 24-hour access to Cash

o Personalized Cash Withdrawals o View Account Balances & Mini-statements.

o Change ATM PIN

o Order a Cheque Book / Account Statement

o HDFC Bank Credit Card Payment.

o Deposit Cash or Cheques o Transfer Funds between accounts - Transfer money between your

accounts. Both accounts must be linked to your ATM / Debit Card.

Maximum of 16 A/cs (Savings / Current) can be linked to a card.

o Refill your Prepaid Mobile –

o Pay your Utility Bills

o Cheque Status Enquiry

o Net Banking Password Request

MOBILE BANKING

What can I do using HDFC Bank Mobile Banking?

Using our Mobile Banking service, you can avail of a host of features at your

finger tips

Perform funds transfers *

Get your balance details

Obtain your last 3 transaction details

Request a cheque book

Stop a cheque payment

Enquire cheque status

Request an account statement

Get Fixed Deposit details

Request for I-PIN generation

HDFC BANK

29

HDFC MUTUAL FUND

An HDFC asset Management Company limited is well-established fund house.

HDFC Assets Management Company limited is sponsored by Housing

Development Finance Corporation Limited (HDFC) and Standard life

investments limited. HDF Cassets Management Company limited launched its

scheme HDFC EQUITY FUND in the year January 1995. Since then it focused

on different class of schemes for many years and launched several innovative

products that went to become bourgeoning categories in the Indian mutual fund

industry. Some of these were HDFC GROWTH FUND, HDFC TOP 200

FUND, and HDFC BALANCED FUND, HDFC PRUDENCE FUND etc.

HDFC assets Management Company limited have offices in 29 cities and

currently manage assets in excess of Rs. 36146.67 cores. (May 2007.)

Housing finance major HDFC is entering the education loan business, which the

company sees as a high growth segment.

HDFC on Friday announced acquisition from DSP Merrill Lynch Capital of a 41%

equity stake in a finance service company Credila Financial Services that

specializes in education loans.

Though the acquisition is modest in terms of value terms, the move assumes

significance as the housing finance company is entering into a new line of

business. The investment is less than Rs 10 crore, said VS Rangan, Senior General

Manager, HDFC.

Mumbai-based Credila Financial specialises in student loans, especially for

students going abroad. The NBFC (non-banking financial company) has a loan

portfolio of around Rs 20 crore, built over the last two years.

HDFC BANK

30

Rangan told Business Line that the student loan segment is growing at an

annualized rate of about 25-30%, which makes this investment an attractive one for

HDFC. The company had earlier given some small student loans, but did not focus

on this segment. As of now HDFC has no plans to lend directly. Instead it will

focus on growing the business of Credila Financial and even infuse fresh capital if

required, Rangan said.

“We have to grow this business. So we will infuse capital as required. As of now

not much capital is required,” he said. DSP Merrill Lynch has sold its entire stake

of 41%.

The remaining 59% is held by the promoters Bohora Brothers.

Banks active in the education loans have seen good credit growth as this segment

has not been hit much by the downturn. In the September ended quarter, most

banks reported over 25% growth in student loan portfolio.

According to Rupa Rege Nitsure, Chief Economist, Bank of Baroda, education

loans are not linked to the immediate income of the borrower but are linked to the

future earnings.

Therefore, the immediate economic scenario has no impact on this segment.

Bank of Baroda saw its education loan portfolio grow by 29% in the September

ended quarter. For Bank of India the growth was 24% and for Union Bank of India

the growth was 40%.

HDFC BANK

31

HDFC BANK PRODUCTS AND SERVICES

HDFC Bank offers a wide array of banking products and financial services under

its personal banking, NRI banking and wholesale banking facilities. The following

are some of the most attractive products and services made available by the bank.

Accounts & Deposits

Regular Savings Account

Senior Citizens Account

Savings Accounts

Salary Accounts

Fixed Deposits

Super Saver Facility

Demat Account

Safe Deposit Lockers

Private Banking

Personal Loans

Home Loans

Two Wheeler Loans

New Car Loans

Educational Loan

Loan Against Securities

Construction Equipment Finance

Retail Agri Loans

Gold Loan

Health Care Finance

Loan Against Property

Commercial Vehicle Finance

HDFC BANK

32

Credit Cards

Gold Credit Card

Visa Signature Credit Card

Platinum Plus Credit Card

Silver Credit Card

Titanium Credit Card

Business Gold Credit Card

Corporate Platinum Credit Card

World MasterCard Credit Card

Debit Cards

EasyShop International Debit Card

EasyShop Woman's Advantage Debit Card

EasyShop Pro Gold Debit Card

Investments & Insurance

Equities & Derivatives

General & Health Insurance

Mutual Funds

Insurance

Forex Services Branch Locator

Visa BillPay service

Merchant Services

InstaPay

Visa Money Transfer

e-Monies Electronic Funds Transfer

Online Payment of Direct Tax

NetBanking

MobileBanking

Credit Cards Online

HDFC BANK

33

HDFC BANK ONLINE BANKING

HDFC Bank offers online presence with an interactive website where customers

can visit to get comprehensive details on all the banking products offered by the

bank. With this website, the bank allows the customers to enjoy a number of online

banking services hardly compared by others. HDFC Internet banking services can

be availed by opening a bank account or getting some banking products offered by

the bank. With the help of this website, you can use the ATM locator and branch

locator tool to search for the branches and ATMs of the bank.

Moreover, you can enjoy a number of convenient net banking services such as

making online payments, checking account balance, making instant fund transfers,

online account statement, hassle free loan application, online trading and much

more. One can make HDFC Bank login by just providing the user ID and password

to enter into the world of net banking where he can get the best of services with

just his fingertips. Moreover, you can easily find HDFC Bank IFSC Code, MICR

Code and Swift Codes by making some simple research inside the official bank

website. Using the branch locator tool, you can also easily find the bank branches

in several cities including Chennai, Pune, Hyderabad, Bangalore, Mumbai, Delhi

and many others.

HDFC BANK

34

HDFC BANK RECRUITMENT

The Bank organizes job recruitments to fill their openings from time to time.

HDFC Bank careers and jobs bring a number of benefits and priority services to

the employees. Moreover, the bank provides attractive salary packages and a

number of additional banking benefits to their employees. HDFC job vacancies for

PO, Clerks and freshers are made available and vital details on latest job openings

can be obtained from the official HDFC website. There will be different

requirements for the different openings and applicants are advised to have a clear

understanding of the eligibility conditions.

HDFC BANK CUSTOMER CARE

Customers of HDFC Bank are offered with convenient customer care services of

the bank. You can make queries, check application status, make complaints and get

a number of assistance from them. One can easily get the customer care numbers

of the bank easily from the bank website. The following are some of the bank

customer care numbers in some major cities of India.

Delhi & NCR - (011) 4151 4332

Chandigarh - (0172) 469 3333

Punjab - 98153 31111

Haryana - 99962 43333

Customers can also contact the toll free numbers 1800 22 1006 and (022) 2856

1818 to get a number of assistance.

HDFC BANK

35

FINANCIAL INSTITUTION

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.

IndiaLink

Cash Management Services

Services to Cash Surplus Corporates

Tax Collection

Bankers to Rights/Public Issue

Forex Desk

Money Market Desk

Derivatives Desk

Custodial Service

Correspondent Banking

Mutual Funds

We are the leading banking service providers to public and private sector mutual

fund clients and have kept pace with the revolutionary growth of the industry by

evolving a range of services to meet the varied needs of fund groups.

Collection Services

Payment Services

Funds Transfer

Money Market Desk

Debt Market

Services to Employee Trusts

Services to Cash Surplus Corporates

Tax Collection

Bankers to Rights/Public Issue

Payment Services

Stock Brokers

Clearing Bank Services to Currency Derivative Brokers

HDFC Bank is the leading clearing Bank for currency derivative segment of

National Stock Exchange of India Limited (NSEIL), United Stock Exchange of

India Limited (USE) and MCX Stock Exchange Limited (MCX-SX).

HDFC Bank with its rich and multitudinous expertise as clearing Bank, is poised to

cater to the needs of all intermediaries, particularly brokers, in currency derivative

segment. Bank is offering slew of products to suit working capital requirements of

the brokers and can also offer structured products, to meet specific requirements

for the clearing member.

For more details, please contact Hema Rane on +91-9322902936/Mukesh Shah on

+91-9323169961

HDFC BANK

36

Clearing Bank Services to Capital Market Brokers

HDFC Bank Limited is the leading clearing Bank for National Stock Exchange of

India Limited (NSEIL) and Bombay Stock Exchange Limited (BSE) offering a

range of products and services in the Capital Market Business.

HDFC Bank is also a Clearing Bank for other Stock Exchanges in India namely

Ahmedabad Stock Exchange, Calcutta Stock Exchange, OTC Exchange of India

and the Interconnected Stock Exchanges.

The clearing and settlement bank activities are handled by the Capital Market

Division of the Bank, which is manned by highly experienced staff specifically

trained to handle the ever changing/ urgent requirements of the clearing members.

Products and Services for Capital Market Brokers

HDFC Bank offers the following products and services to client members

Fund based Non Fund based Transaction

based

Others

Loan against

securities

Bank guarantees to

NSE/BSE

Settlement

Activities

Corporate

Salary Accounts

Structured

Products

Bank Guarantees to

Professional clearing

members

Payment

Gateways

DP Accounts

ENet™ Custodial

Service

Supply chain

Management

Cash Management

Services

HDFC BANK

37

Insurance Companies

The Insurance business is a key focus area for HDFC Bank. Our experience in this

sector has created a benchmark in providing services to all institutions of this

industry, namely, Life Insurance Corporation of India Ltd, National Insurance

Company Limited, Oriental Insurance Co Ltd., New India Assurance Co. Ltd. and

United India Insurance Ltd.

Collection services

Forex Desk

Money Market Desk

Derivatives Desk

Services to Employee Trusts

Custodial Service

Disbursement Services

Commodity Businesses

HDFC Bank is the leading clearing bank for National Commodity & Derivative

Exchange Ltd., (NCDEX), Multi Commodity Exchange of India Ltd., (MCX) and

National Multi Commodity Exchange of India Ltd. (NMCE), offering a range of

products and services in the Commodity Exchange Business.

Commodity Markets Business

Processors / Manufacturers

Market Participants (Commodity Traders &

Brokers)

Farmers / Agriculturists

Trusts

The trust services at HDFC Bank provide you with the dual advantages of a secure

depository and efficient administration of your securities. Through our solutions

we help you maximize returns, meet fiduciary responsibilities, and improve

operational efficiency. In other words HDFC Bank provides complete

administrative and fiduciary support for a wide range of financing and investing

structures.

HDFC BANK

38

ARTICLE

HOUSING DEVELOPMENT

FINANCE CORPORATION LIMITED

HDFC LAUNCHES REAL ESTATE FUND “HDFC PROPERTY FUND”

IN ASSOCIATION WITH STATE BANK OF INDIA

Housing Development Finance Corporation Limited (HDFC Ltd.), India‟s

premier housing finance company today announced its foray into the real estate

fund business in India with the launch of “HDFC Property Fund” in association

with State Bank of India (SBI). A trustee company (HDFC Ventures Trustee

Company Limited) and an asset management company (HDFC Venture Capital

Limited) have been incorporated for the fund. This venture capital fund

approved by SEBI would be investing in equity and equity linked instruments of

companies engaged primarily in real estate in major cities in India.

The fund‟s initial scheme called HDFC INDIA REAL ESTATE FUND (HI-

REF) is for domestic investors and has a target corpus of Rs 750 crores with a

greenshoe option of Rs 250 crores. This would be a 7-year close-ended fund,

which would be privately placed. The scheme would have a minimum

contribution of Rs 5 crores per investor and would target banks, insurance

companies, corporates and high net worth individuals for investment.

To achieve a balanced risk-reward profile, the inaugural scheme, HI-REF will

invest in three broad classes of companies:

a. Projects which are complete – this would comprise real estate assets,

which are in use with established, high-quality tenants. Such asset class

typically would denote steady income type characteristics.

b. Projects in the development stage - where the lead-time to commercial

deployment is typically between 1-3 years and the completed projects

subsequently would have contractual off-take arrangements in place.

c. Projects in the planning stage - where the lead-time to commercial

deployment would be 3-6 years. These projects would offer the highest

amount of return although with a greater risk.

Mr. Keki Mistry, Managing Director, HDFC said “The Venture Fund, is an

extension of HDFC‟s core business and a value add to its bouquet of services in

the real estate sector. This is a first step and going forward we hope this will

HDFC BANK

39

encourage professionalism and provide depth to this industry.

Ms. Renu Sud Karnad, Executive Director, HDFC Ltd., who would be the non-

executive chairperson of HDFC Venture Capital Ltd., says, “Worldwide real

estate represents a substantial share of fund allocations by institutional investors

but in India this had been hampered by the lack of credible mechanisms through

which institutions could invest in the sector. With the increase in professional

players entering the real estate business coupled with the recent boom, there has

been a lot of demand from investors for a real estate investment scheme. Now

with real estate looking up as a positive investment option for venture capital

companies, we are confident that the much required Investment inflow into this

industry will be welcomed.”

Recent reports indicate that the share of real estate as a percentage of India‟s

GDP has risen from 5.25% to over 7% from 2002 – 2003. Returns from this

sector exceed those for most other investment alternatives in the market. Yields

on commercial real estate across metros in India are higher than those prevalent

in global real estate markets. With the revolution in the services sector over the

last decade, the rise in the sector‟s share of GDP to 50% marks a shift in the

Indian economy and takes it closer to the fundamentals of a developed

economy.

The IT and ITES sector has grown phenomenally despite adverse global

conditions and grew by 54% in 2003-04. Apart from this, biotechnology,

insurance, banking and consulting businesses have also been growth segments

driving the demand for real estate. A higher demand can be seen in the retail

segment with an expected influx of clothing and lifestyle stores, restaurants and

beverage chains, entertainment and leisure complexes.

Adds Ms Karnad, “India is on the move and in particular the Indian real estate

sector is on the agenda of all major international funds and developers. We also

have plans to have a specific international fund soon”.

Mr. K G Krishnamurthy, Senior General Manager with HDFC, would be the

CEO and Managing Director of the fund.

The real estate sector will benefit immensely and play a key role in driving

India‟s economic growth. The immediate requirement is to create a professional

and transparent environment, which helps establish real estate as a sound

investment option. Going forward, the combined strengths of HDFC and SBI

HDFC BANK

40

would offer a national network and a strong platform of financial expertise and

reach required for this venture and will be a big step in the efforts to boost the

real estate market.

About HDFC HDFC, the first specialized housing finance institution in India has been

providing financial assistance to individuals, corporates and developers for the

purchase or construction of residential properties besides providing property

related services, training and consultancy. In its 27 years of business presence,

the company has developed close relationships with all major developers, local

development bodies, state governments, regulators and has a branch network of

over 180 offices across the country catering to over 2400 towns and cities.

Mr. K G Krishnamurthy

MD & CEO

HDFC Property Fund

23rd March 2005

HOUSING DEVELOPMENT

FINANCE CORPORATION LIMITED

HDFC reaches new landmark - crosses Rs. 1,00,000 crores in loan

approvals

From a modest beginning of Rs. 7.1 crores in home loan approvals in its first

year of operations to over Rs. 1,00,000 crores in cumulative home loan

approvals in 28 years, HDFC has come a long way. As an institution that

introduced an unknown concept in the late 1970s, it has defined and

spearheaded many of the changes that have given shape to the housing industry

through the years and has turned the dream of owning a home into reality for

over 2.7 million families across the country.

The journey began as a thought that took shape in the mind of HDFC‟s founder

Chairman, Mr. H. T. Parekh, who laid a solid foundation. This thought grew to

become a reality in the form of HDFC – to enable Indian households access

housing in their prime earning days through institutional finance. At the time of

its commencement, HDFC was the first private sector housing finance

institution in India. Since the early years, it clearly defined the company‟s core

values - integrity, transparency and trust, ingraining it throughout the

organisation and in all its activities. It focused on a future that it needed to

HDFC BANK

41

make, rather than wait for it to happen and went on to transform the concept of

providing retail finance to middle-class families in India into a world-class

institution. Its success encouraged the creation of a number of housing finance

institutions in India.

Though it enjoyed a monopoly when it started out, the company‟s firm focus has

always been on customer satisfaction. The company continues to follow this

philosophy and believes the best strategies are established with long-term

commitment and relationships with the customers. HDFC‟s experience and in-

depth knowledge of the sector is a boon for its customers, who find their

financing process simple and easy to comprehend.

HDFC has been at the forefront of the decisive issues and fundamental reforms

that have taken place in the home loans industry. Right from defining the

concepts to setting up the systems and procedures to take it through, the

company has pioneered the way. It followed a different model and set-up a

“follow-up” department to deal with delinquent borrowers instead of a

“recoveries” section, believing that individuals were basically honest and would

pay back in time. The company played a crucial role in the setting up of the

National Housing Bank in 1987 and worked closely with the Government of

India to formulate national policies related to housing finance and urban

development. It has been encouraging professionalism and transparency in the

real estate industry for the benefit of customers.

Recent growth in the housing mortgage market at large has come due to historic

low interest rates and manifold increase in competition particularly from funds-

flushed commercial banks. But such strong growth from HDFC despite low cost

competition from banks is a testimony to the power of its brand. Though its loan

portfolio is continuously growing rapidly (29% for the nine months ended

December 2005), its steadfast focus on growth with profitability has ensured

that its gross NPAs have always been around 1%, the lowest in the industry.

Today, especially for foreign investors looking to navigate the Indian equity

market, HDFC has proven to be something of a safe harbor. Foreign investors at

present hold over 78% of the equity, the highest for any Indian company.

In the course of the last ten years it has diversified into various arenas of the

financial sector such as banking, asset management, life insurance, general

insurance, BPO, credit bureau and recently, real estate venture capital fund. In

the last decade the assets of the HDFC group have moved up from Rs. 7,560

HDFC BANK

42

crores to over Rs. 1,25,000 crores.

Today, HDFC‟s offices have grown from 28 offices in 1995 to a network of 215

outlets. In addition, HDFC covers over 90 locations through its outreach

programmes. To cater to non-resident Indians, HDFC has an international office

in Dubai and operates through various service associates in the UAE, Saudi

Arabia, Kuwait, Oman and Qatar.

HDFC‟s simple approach has been to make a positive contribution to the

community by making housing affordable and as it moves along taking small

steps in these directions what makes the effort truly worthwhile is when it

ultimately benefits individuals and the society at large.

HDFC BANK

43

HDFC TO DIVERSIFY LENDING TO MFIS

HDFC Bank aims to increase the number of states where it lends to microfinance

institutions. In addition, to the southern states where it has a presence,

microfinance institutions Uttar Pradesh, Madhya Pradesh, West Bengal and North

Eastern states are likely to be targeted by the bank.

N S Kishore Kumar, head-agriculture business and micro finance, HDFC Bank,

told Business Standard, “We plan to treble the advances made to microfinance

institutions to Rs 225 crore during the current fiscal from Rs 75 crore the previous

year.”

Kumar points that the reason for the bank to focus its reach in north and eastern

states is that microfinance has been successful in the South particularly Tamil

Nadu and Andhra Pradesh on account of the significant presence of Self Help

Groups.

We like to extend credit disbursement so that the existing nongovernmental

organizations can upgrade themselves to larger microfinance institutions in poor

regions like Bihar and Uttar Pradesh so as stimulate local employment, he said.

HDFC Bank has already tied-up with 20 microfinance institutions and plans to tie-

up with 15 more institutions based in the above mentioned states, he added.

HDFC BANK

44

QUESTIONAIRE FOR HDFC BANK

WHO IS THE CHAIRMAN OF HDFC?

---- Mr. C.M. Vasudev has been appointed as the Chairman of the Bank with

effect from 6th July 2010 subject to the approval of the shareholders.

WHO IS THE MANAGING DIRECTOR?

---- The Bank‟s Managing Director, Mr.AdityaPuri, has been a professional banker

for over 25 years. Before joining HDFC Bank in 1994, he was heading Citibank‟s

operations in Malaysia.

WHEN THE BANK WAS INCORPORATED.

---- The bank was incorporated in August 1994 in the name of „HDFC Bank

Limited‟, with its registered office in Mumbai, India. HDFC Bank commenced

operations as a Scheduled Commercial Bank in January 1995.

WHAT IS HDFC MISSION?

---- HDFC Bank‟s mission is to be a World Class Indian Bank.

WHAT ARE ITS OBJECTIVES?

---- 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.

HDFC BANK

45

WHERE HDFC HAD LISTED THERE SHARES.

---- The shares are listed on the Bombay Stock Exchange Limited and The

National Stock Exchange of India Limited. The Bank's American Depository

Shares (ADS) are listed on the New York Stock Exchange (NYSE) under the

symbol 'HDB' and the Bank's Global Depository Receipts (GDRs) are listed on

Luxembourg Stock Exchange under ISIN No US40415F2002.

WITH WHOM THE BANK HAD AMALGAMATED AND WHEN

---- On May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC

Bank was formally approved by Reserve Bank of India to complete the statutory

and regulatory approval process.

HOW MANY BRANCHES DO HDFC HAVE?

---- The Bank has a network of 1765 branches in 819 cities across India. All

branches are linked on an online real-time basis.

HOW MANY BRANCHES OF ATM HDFC HAVE

--- HDFC Bank has 1,725 branches and over 4,232 ATMs, in 779 cities in India,

and all branches of the bank are linked on an online real-time basis.

WHICH BANKS ARE MEARGE WITH HDFC

--- Times Bank Limited (owned by Bennett, Coleman & Co. / Times Group) was

merged with HDFC Bank Ltd., in 2000.

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WHICH TYPE OF SERVICES HDFC PROVIDE.

--- Wholesale Banking Services, Retail Banking Services, Treasury.

WHICH TYPE OF BANKING SOFTWARE HDFC USE.

---- In terms of core banking 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.

WHICH TYPES OF AWARDS HDFC HAD ACHIEVED.

---- 1. Business world Best Bank Awards 2010 - Best Bank (Large)

2. Teacher's Achievement Awards 2010 (Business) - Mr. AdityaPuri

3. The Banker and PWM 2010 Global Private Banking Awards - Best Private Bank

in India

4. Economic Times Awards for Corporate Excellence 2010 - Business Leader of

the Year - Mr. Aditya Puri

5. Financial Insights Innovation Awards 2010 - Innovation in Branch Operations -

Server Consolidation Project.

THERE ARE MANY MORE AWARDS WHICH YOU CAN REFER

ABOVE.

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Thus from the above study we can conclude that HDFC India deals in varieties of products like home loan, mutual fund, securities, credit cards, etc. HDFC has branch offices in all major cities in India like Calcutta, Chennai, Delhi, Bangalore, Hyderabad, and Ahmedabad apart from HDFC Mumbai.

The services offered by bank are varied and leaves the customer satisfied. Due to net working of its services, the bank has made it easy for anyone to find out about the bank and most importantly have the best services in the shortest time possible.

The bank makes it possible for its customers to trade the stock market without worries of loosing it’s their stake. The modern new technology has played a major role in cultivating HDFC bank to get where it’s at the moment.

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@ www.iloveindia.com/finance/bank/...banks/hdfc-bank.html -

@ www.hdfcbank.com

@ https://netbanking.hdfcbank.com/ -

@ en.wikipedia.org/wiki/HDFC Bank

@ www.hdfcbank.com/personal/default.htm

@ www.hdfcbank.com/personal/access/default.htm

@ www.hdfcbank.com/personal/payments/default.htm

THANK YOU