s m Mini Project

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HDFC BANK HISTORY:

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 the RBI's liberalization 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.

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.

HDFC Bank began operations in 1995 with a simple mission: to be aWorld 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.

STRONG NATIONAL NETWORK

March 2006 March 2007 March 2008

Citied 228 316 327

Branches 535 684 761

ATMs 1323 1605 1977


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As of March 31, 2008, the Banks distribution network was at 761 Branches and 1977 ATMs

in 327 cities as against 684 branches and 1,605 ATMs in 320 cities as of March 31, 2007.

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

the branch network by around 150 branches by June 30, 2008. During the year, the Bank stepped

up retail customer acquisition with deposit accounts increasing from 6.2 million to 8.7 million

and total cards issued (debit and credit cards) increasing from 7 million to 9.2 million.

Whilst credit growth in the banking system slowed down to about 22% for the year ended

2007-08, the Banks net advances grew by 35.1% with retail advances growing by 38.6% and

wholesale advances growing by 30%, implying a higher market share in both segments.

The transactional banking business also registered healthy growth with cash management

volumes increased by around 80% and trade services volumes by around 40% over the previous

year.

Portfolio quality as of March 31, 2008 remained healthy with gross nonperforming assets at

1.3% and net non-performing assets at 0.4% of total customer assets. The Banks provisioning

policies for specific loan loss provisions remained higher than regulatory requirements.


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STRUCTURE OF HDFC BANK:

ORGANIZATIONAL STRUCTURE:

The Composition of the Board of Directors of the Bank is governed by the Companies Act, 1956,

the Banking Regulation Act, 1949 and the listing requirements of the Indian Stock Exchanges

where securities issued by the Bank are listed. The Board has strength of 12 Directors as on

March 31, 2008. All Directors other than Mr. Aditya Puri, Mr. Harish Engineer and Mr. Paresh

Sukthankar are non-executive directors. The Bank has five independent directors and seven non-

independent directors. The Board consists of eminent persons with considerable professional

expertise and experience in banking, finance, agriculture, small scale industries and other related

fields. None of the Directors on the Board is a member of more than 10 Committees and

Chairman of more than 5 Committees across all the companies in which he/she is a Director. All

the Directors have made necessary disclosures regarding Committee positions occupied by them

in other companies. Mr. Jagdish Capoor, Mr. Keki Mistry, Mrs. Renu Karnad, Mr. Vineet Jain,

Mr. Aditya Puri, Mr. Harish Engineer and Mr. Paresh Sukthankar are non-independent Directors

on the Board. Mr. Arvind Pande, Mr. Ashim Samanta, Mr. Gautam Divan, Mr. C. M. Vasudev

and Dr. Pandit Palande are independent directors on the Board. Mr. Keki Mistry and Mrs. Renu

Karnad represent HDFC Limited on the Board of the Bank. Mr. Vineet Jain represents Bennett,

Coleman Group on the Board of the Bank. The Bank has not entered into any materially

significant transactions during the year, which could have a potential conflict of interest between

the Bank and its promoters, directors, management and/or their relatives, etc. other than the

transactions entered into in the normal course of business. The Senior Management have made

disclosures to the Board confirming that there are no material, financial and/or commercial

transactions between them and the Bank which could have potential conflict of interest with the

Bank at large.

BOARD OF DIRECTORS

Mr. Jagdish Capoor Mr. Aditya Puri Mr. Keki M. Mistry Mr. Vineet Jain Mrs. Renu Karnad Mr.


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Arvind Pande Mr. Ashim Samanta Mr. C M Vasudev Mr. Gautam Divan Dr. Pandit Palande Mr.

Paresh Sukthankar

CAPITAL STRUCTURE:

As on 30th June, 2010 the authorized share capital of the Bank is Rs. 550 crore. The paid-up

capital as on said date is Rs. 459,69,07,030/- (45,96,90,703 equity shares of Rs. 10/- each). The

HDFC Group holds 23.63 % of the Bank's equity and about 17.05 % of the equity is held by the

ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue). 27.45% of

the equity is held by Foreign Institutional Investors (FIIs) and the Bank has about 4,33,078

shareholders.

The shares are listed on the Bombay Stock Exchange Limited and The National Stock Exchangeof 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.


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HDFC BANK PRODUCTS & SERVICE:

PERSONAL BANKING

Loan Product Deposit Product Investment &

Insurance

y Auto Loany Loan Against Securityy Loan Against Propertyy Personal loany Credit cardy 2-wheeler loany Commercial vehicles financey Home loansy Retail business bankingy Tractor loany Working Capital Financey Construction Equipment Financey Health Care Financey Education Loany Gold Loan

y Saving a/cy Current a/cy Fixed deposity Demat a/cy Safe Deposit

Lockers

y Mutual Fundy Bondsy Knowledge

Centre

y Insurancey General and

Health Insurance

y Equity andDerivatives

y Mudra Gold Bar

Cards Payment Services Access To Bank

y Credit Cardy Debit Cardy Prepaid Card

--------------------------------

Forex Services

--------------------------------

y Product & Servicesy Trade Servicesy Forex service Branch Locatery RBI Guidelines

y NetSafey Merchanty Prepaid Refilly Billpayy Visa Billpayy InstaPayy DirectPayy VisaMoney

Transfer

y NetBankingy OneViewy InstaAlertMobileBanking

y ATMy Phone Bankingy Email Statementsy Branch Network


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WHOLESALE BANKING

Corporate Small and Medium

Enterprises

Financial Institutions and Trusts

y Funded Servicesy Non Funded

Services

y Value AddedServices

y InternetBanking

y Funded Servicesy Non Funded

Services

y Specialized Servicesy Value added servicesy Internet Banking

BANKS

y Clearing Sub-Membershipy RTGS sub membershipy Fund Transfery ATM Tie-upsy Corporate Salary a/cy Tax CollectionFinancial Institutions

Mutual Funds

Stock Brokers

Insurance Companies

Commodities Business

Trusts


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NRI SERVICES

Accounts & Deposits Remittances

y Rupee Saving a/cy Rupee Current a/cy Rupee Fixed Depositsy Foreign Currency Depositsy Accounts for Returning Indians

y North Americay UKy Europey South East Asiay Middle Easty Africay O

thersQuick remit

India Link

Cheque Lockbox

Telegraphic/ Wire Transfer

Funds Transfer Cheques /DDs/TCs

Investment & Insurances Loans

y Mutual Fundsy Insurancey Private Bankingy Portfolio Investment Scheme

y Home Loansy Loans Against Securitiesy Loans Against Depositsy Gold Credit Card

Payment Services Access To Bank

y Net Safey Bill Payy Insta Payy Direct Payy Visa Moneyy Online Donation

y Net Bankingy One Viewy Insta Alerty ATMy Phone Bankingy Email Statementsy Branch Network


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INTEREST RATES OF HDFC BANK:

For Deposits Below Rs.15 Lacs

Period

Interest

Rate (per

annum)

**Senior Citizen

Rates (per

annum)

Effective From

7 - 14 days 3.00% 3.50% Jul 30, 2010

15 - 29 days 3.00% 3.50% Jul 30, 2010

30 - 45 days 3.75% 4.25% Jul 30, 2010

46 - 60 days 3.75% 4.25% Jul 30, 2010

61 - 90 days 4.50% 5.00% Jul 30, 201091 Days to less than 6 months

1 day5.25% 5.75% Jul 30, 2010

6 months 1 day - 6 months 15

days5.75% 6.25% Jul 30, 2010

6 months 16 days 6.25% 6.75% Sep 24, 2010

6 months 17 days - 9 months

15 days6.00% 6.50% Sep 24, 2010

9 months 16 days 6.50% 7.00% Jul 30, 2010

9 months 17 days - 1 year 6.25% 6.75% Jul 30, 2010

1 year 1 day - 1 year 15 days 6.50% 7.00%February

19,2010

1 year 16 days 7.00% 7.50% Jul 30, 2010

1 year 17 days - 2 years 6.50% 7.00%February

19,2010

2 years 1 day - 2 years 15

days7.00% 7.50%

February

19,2010

2 years 16 days 7.50% 8.00% Jul 30, 2010

2 years 17 days - 3 years 7.00% 7.50%

February

19,2010

3 years 1 day - 5 years 7.50% 8.00%February

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5 years 1 day - 8 years 7.50% 8.00%February

19,2010

8 Year 1 Day - 10 Years 7.50% 8.00% February


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19,2010

For Deposits of Rs.15 Lacs to less than Rs. 1 Cr

Period Interest

Rate (per

annum)

**Senior Citizen

Rates (per

annum)

Effective

From

7 - 14 days 3.00.% 3.50% Jul 30, 2010

15 - 29 days 3.00.% 3.50% Jul 30, 2010

30 - 45 days 3.75% 4.25% Jul 30, 2010

46 - 60 days 3.75% 4.25% Jul 30, 2010

61 - 90 days 4.50% 5.00% Jul 30, 2010

91 Days to less than 6 months 1

day

5.25% 5.75% Jul 30, 2010

6 months 1 day - 6 months 15

days

5.75% 6.25% Jul 30, 2010

6 months 16 days 6.25% 6.75% Sep 24, 2010

6 months 17 days - 9 months 15

days

6.00% 6.50% Sep 24, 2010

9 months 16 days 6.50% 7.00% Jul 30, 2010

9 months 17 days - 1 year 6.25% 6.75% Jul 30, 2010

1 year 1 day - 1 year 15 days 6.50% 7.00% February19,2010

1 year 16 days 7.00% 7.50% Jul 30, 2010

1 year 17 days - 2 years 6.50% 7.00% February

19,2010

2 years 1 day - 2 years 15 days 7.00% 7.50% February

19,2010

2 years 16 days 7.50% 8.00% Jul 30, 2010

2 years 17 days - 3 years 7.00% 7.50% February

19,20103 years 1 day - 5 years 7.50% 8.00% February

19,2010

5 years 1 day - 8 years 7.50% 8.00% February

19,2010

8 Year 1 Day - 10 Years 7.50% 8.00% February

19,2010


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PRODUCT DEVELOPMENT FOR INVESTMENT:

When you bank with us, HDFC ensure your money is not just in safe hands; it also works to your

advantage. HDFC help you invest wisely through our financial and investment services. Profit

from HDFC expertise.

Wealth Advisory Services Mutual Funds Tax Planning Insurance General Insurance Health Insurance Bonds Knowledge Centre Equities & Derivatives Mudra Gold Bar

Mudra Silver Bar IPO Application through ASBA

DISTRIBUTION:

HDFC Bank is headquartered in Mumbai. The Bank has an network of 1,725 branches spread in

771 cities across India. All branches are linked on an online real-time basis. Customers in over

500 locations are also serviced through Telephone Banking. The Bank has a presence in all

major industrial and commercial centers across the country. Being a clearing/settlement bank to

various leading stock exchanges, the Bank has branches in the centers where the NSE/BSE have

a strong and active member base.


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The Bank also has 3,898 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.

MARKETING AND OTHER SUPPORT:

Card Support

Imagine a leading newspaper reserving sole space for you, running your ad, and mailing it

individually to each of your prospective customers. Here's an innovative marketing idea that's

sure to give maximum mileage to your product or service. Just carry your offer on the monthly

statements of India's high end credit cards HDFC Bank.

Targeted Direct Mailers

You get a direct reach to your specific target group and you can communicate one on one with

them. You have a captive audience who'll read and re-read your message at leisure. And since

the people you are targeting are personally addressed, there's no wastage.

EMI Opportunities

Advertise your EMI offers to HDFC Bank credit card customers interested in buying now and

paying later in installments coupled with a fantastic finance offer.

Catalogue based rewards Program.

You can also widen your reach and popularize your products by participating in HDFC Bank's

Rewards Program.


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SWOT ANALYSIS OF HDFC BANK:

STRENGTH

y Right strategy for the rightproducts.

y Superior customer servicevs. competitors.

y Great Brand Imagey Products have required

accreditations.

y High degree of customersatisfaction.

y Good place to worky Lower response time with

efficient and effective

service.

y Dedicated workforceaiming at making a

long-term career in thefield.

WEAKNESSES

y Some gaps in range for certainsectors.

y Customer service staff needtraining.

y Processes and systems, etcy Management cover

insufficient.

y Sect oral growth isconstrained by low

unemployment levels and

competition for staff


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Opportunities

y Profit margins will be good.y Could extend to overseas

broadly.

y New specialist applications.y Could seek better customer

deals.

y Fast-track career developmentopportunities on an industry-

wide basis.

y An applied research centre tocreate opportunities for

developing techniques to

provide added-value services.

Threats

y Legislation could impact.y Great risk involvedy Very high competition

prevailing in the industry.

y Vulnerable to reactiveattack by major competitors

y Lack of infrastructure in ruralareas could constrain

investment.

y High volume/low cost marketis intensely competitive.


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FINANCIAL PERFORMANCE AND STRENGHTH:

PERFORMANCE

BALACE SHEET OF HDFC BANK

ParticularsCAPITAL AND LIABILITIES Sch no As on 2010 As on 2009

Capital 1 4,577,433, ,

Equity Share Warrants4,009,158

Reserves and Surplus 2 210,618,369142,209,460

Employees StockOptions

(Grants) Outstanding29,135

54,870

Deposi

ts

3 1,674,044,394 1,428,115,800

Borrowings 4 129,156,925 91,636,374

Other Liabilities and

Provisions5 206,159,441 162,428,229

Total 2,224,585,697 1,832,707,732

ASSETS

Cash and Balances with

Reserve Bank of India6 154,832,841 135,272,112

Balances with Banks and

Money at Call and Short

notice

7 144,591,147 39,794,055

Invest

ments 8 586,076,161 588,175,488Advan

ces9 1,258,305,939 988,830,473

FixedAssets

10

21,228,114 17,067,290

OtherAssets

11

59,551,495 63,568,314

Total 2,224,585,697 1,832,707,732

contingent liabilities 12

Bills for Collection


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STRENGTH:

Some ratios of the company:

Current Ratio 0.04 0.04

Quick Ratio 4.89 5.23

Dividend Payout Ratio Net Profit 22.16 22.16Dividend Payout Ratio Cash Profit 18.93 19.10Earning Retention Ratio 77.83 77.79

Cash Earning Retention Ratio 81.07 80.87AdjustedCash Flow Times 54.14 54.91

Earnings Per Share 44.87 52.77

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