HDFC BANKWe Understand Your World

INTRODUCTION

HDFC Bank was incorporated in August 1994

Among the first in new generation commercial banks

Registered office in Mumbai, India Promoted by HDFC, the parent

company IPO in India in 1995 Listed in NSE, BSE, NYSE (ADR)

VISION Increase market share in India’s banking sector

Leverage technology platform Maintain standards for asset quality

Focus on high earnings growth with low volatility

Develop innovative products and services

MISSION

mission is to be "a World Class Indian Bank“

benchmarking ourselves against: international standards and best practices in terms of product offerings,

technology, service levels, risk management and audit & compliance.

VALUES

Our business philosophy is based on four core values –

Customer Focus, Operational Excellence, Product Leadership and People.

STRENGTH

Large share of low-cost deposits, higher net interest marginBetter quality of assets, NPA of 0.4 per centFree float available, FIIs can buy its stockHigher profitability

weakness

Marginal international presenceNo next line of leadershipNot very aggressive in M&A space, growing only organicallyPossible takeover target

Opportunity

Growing Indian banking sector People are becoming more service

oriented In the global market.

Threats

From various competitors- Foreign Banks- Government Banks

Future market trends

PEST

POLITICAL FACTORS Government Regulation

Stable constituency

Fiscal policy

ECONOMIC FACTORS: Market performance

Global Standards

Inflation

SOCIAL FACTORS

Community initiatives

Income

Technology factors

This is the era of information technology and due to net banking, online transaction, online RTGS, clearing system helps the industry a lot.

MarketingAdvertisingMarketing automation technologyBusiness ki baateinBrandingConsumers connected emotionally with the brand, as it hadhelped them buy homesl While they had lent money, they treated consumers with grace, trust and professional serviceSales supportSubsidiaries

SalesMulti-channel managmentaward for atm solutions and management along with NCRThe asian banker technology award

Market expansionRural marketsGlobal markets(bahrain)

Product Product offeringIt includes these services: -· Saving accounts.· Current accounts.· Fix deposits.· Demat account.· Safe deposits lockers.

Product expansion: different kinds of laons,different kind of credit cards etc.

TransactionPayment services:netsafe,visa money transfer,merchant services etc.ClearingSettlements

Technological developmentautomated customer data de-duplication and real-time scoring in its loan origination process.

introduced faster ATMs which enabled the customer a faster servicing experience by through the use of advanced technology

Sophisticated automated switch-over and switch-back solutions

Human resourcesTotal number of employees is approximately 51388 as of march 2010

training is done through external as well as internal faculty

Infrastructure Risk management guidelinesThe identification, measurement, monitoring and management of risks accordingly remain a key focus area for the Bank.

Basel II norms carried out

Credit risk is of two types :retail and wholesale

PORTERS FIVE FORCES

Competitors sizeLast Price Market Cap.

(Rs. cr.)Net Interest

IncomeNet Profit Total Assets

ICICI Bank 976.40 108,913.39 25,706.93 4,024.98 363,399.71

HDFC Bank 2,087.55 95,962.73 16,172.91 2,948.69 183,270.78

Axis Bank 1,328.20 54,184.44 11,638.02 2,514.53 180,647.87

Kotak Mahindra 829.30 30,303.99 3,255.62 561.11 37,436.31

YES BANK 321.00 10,946.75 2,369.71 477.74 36,382.50

IndusInd Bank 223.75 9,197.47 2,706.99 350.31 35,369.52

Federal Bank 330.20 5,644.58 3,673.23 464.55 38,850.88

JK Bank 875.05 4,242.05 3,056.88 512.38 42,546.80

ING Vysya Bank 344.80 4,139.22 2,232.90 242.22 33,880.24

Karur Vysya 608.70 3,313.49 1,757.94 336.03 21,993

Strategy deploid by HDFC Bank

Merger with other banks Acquisition strategy Customer retention strategy.

Views as a manager