CHAPTER-1 INTRODUCTION1.1 Indian Banking Industry

The Indian banking market is growing at an astonishing rate, with

Assets expected to reach US$1 trillion by 2010. An expanding

economy, middle class, and technological innovations are all

contributing to this growth.

The countrys middle class accounts for over 320 million people.

In correlation with the growth of the economy, rising income levels,

increased standard of living, and affordability of banking products

are promising factors for continued expansion.

The Indian banking Industry is in the middle of an IT revolution, Focusing on the expansion of retail and rural banking.

Players are becoming increasingly customer - centric in their

approach, which has resulted in innovative methods of offering new banking products and services. Banks are now realizing the importance of being a big player and are beginning to focus their attention on mergers and acquisitions to take advantage of economies of scale and/or comply with Basel II regulation. Indian banking industry assets are expected to reach US$1 trillion by 2010 and are poised to receive a greater infusion of foreign capital, says Prathima Rajan, analyst in Celent's banking group and author of the report. The banking industry should focus on having a small number of large players that can compete globally rather than having a large number of fragmented players."

1.2Banking Structure in India

Scheduled Banks in India

(A) Scheduled Commercial Banks

Public sector Banks

Private sector BanksForeign Banks in IndiaRegional Rural Bank

(28)(27)(29)(102)

Nationalized Bank

Other Public Sector Banks

(IDBI)

SBI and its Associates Old Private Banks

New Private Banks

(B) Scheduled Cooperative Banks

Scheduled Urban Cooperative

Banks (55)

Scheduled State Cooperative

Banks (31)

Here we more concerned about private sector banks and competition among them. Today, there are 27 private sector banks in the banking sector: 19 old private sector banks and 8 new private sector banks. These new banks have brought in state-of-the-art technology and Aggressively marketed their products. The Public sector banks are Facing a stiff competition from the new private sector banks.

The banks which have been setup in the 1990s under the guidelines of the Narasimham Committee are referred to as NEW PRIVATE

SECTOR BANKS.

New Private Sector Banks

Superior Financial Services Designed Innovative Products Tapped new markets Accessed Low cost NRI funds Greater efficiency1.3 Upcoming Foreign Banks in India

By 2009 few more names is going to be added in the list of foreign banks in India. This is as an aftermath of the sudden interest shown by Reserve Bank of India paving roadmap for foreign banks in India greater freedom in India. Among them is the world's best private bank by EuroMoney magazine, Switzerland's UBS.

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

Royal Bank of Scotland

Switzerland's UBS

US-based GE Capital

Credit Suisse Group

Industrial and Commercial Bank of China

1.4 General Introduction:-The project was carried out for understanding the customer preference & attributes towards saving Account of HDFC Bank and its market potential.HDFC Bank was established in the year 1994, they are old player in banking sector, The bank has two principle client segments customer and asset management. The bank follows values such as Integrity, teamwork, respect, professionalism, & Mission. The segment of bank we are considering here is- Corporate banking. The product out of which have chosen for research is Saving Accounts. This research helps us in finding out the customers view regarding the product and Services offered by the HDFC bank and awareness by promotion and also identifying the market potential of the product offered by the HDFC bank.

1.5 Industry Profile:-

a.) Origin and development of the industry:-

Banking in India originated in the first decade of 18th century. The first banks were The General Bank of India, which started in 1786, and Bank of Hindustan, both of which are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the "The Bank of Bengal" in Calcutta in June 1806. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras. The presidency banks were established under charters from the British East India Company. They merged in 1925 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India. For many years the Presidency banks acted as quasi-central banks, as did their successors. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935. After India's independence in 1947, the Reserve Bank was nationalized and given broader powers.

A couple of decades later, foreign banks such as Credit Lyonnais started their Calcutta operations in the 1850s. At that point of time, Calcutta was the most active trading port, mainly due to the trade of the British Empire, and due to which banking activity took roots there and prospered.

First of all we must note the fact that these institutions have changed very much in character since their origin, and consequently nowadays perform many functions unknown to those of former times. The first banks seem to have arisen in connection with the business of exchangingmoney. In ancient times and especially in the Middle Ages the varieties of coins were greater even than at the present day, and they were much less perfectly and honestly minted. Specialists were, therefore, required to determine their exact value and equivalence and to exchange coins of one mintage for those of another, and their BANK were in great demand at fairs and other places where merchants of different nations met forpurposesof trade. Inasmuch as they kept their boxes or chests of coins on benches or "banken," the name bankers came to be applied to them. On account of their technical knowledge and the fact that they were obliged constantly to keep on hand considerable quantities of the precious metals, this business in the early Middle Ages was usually carried on by goldsmiths, but later it was sometimes assumed by the governments of large commercial cities, as, for example, by Amsterdam in 1609, by Hamburg in 1619, and by Nurnberg in 1621. Of these latter the Bank of Amsterdam was the most important and may be regarded as typical of these early institutions.From the earliest times also, bankers have been the chief agents through which foreign exchanges have been conducted. As dealers in coin and bullion they had international connections and a knowledge of international affairs not possessed by other merchants, and were, therefore, in a position to undertake the settlement of international accounts by means of orders drawn on bankers in other countries or other cities with whom they had regular business transactions. As keepers of other people's money they also promoted saving, and banks thus became in time the chief savings institutions of the country.b. Growth and present status of the industry:-Currently (2009), banking in India is generally fairly mature in terms of supply, product range and reach-even though reach in rural India still remains a challenge for the private sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks in comparable economies in its region. The Reserve Bank of India is an autonomous body, with minimal pressure from the government. The stated policy of the Bank on the Indian Rupee is to manage volatility but without any fixed exchange rate-and this has mostly been true.

With the growth in the Indian economy expected to be strong for quite some time-especially in its services sector-the demand for banking services, especially retail banking, mortgages and investment services are expected to be strong. One may also expect M&As, takeovers, and asset sales.

In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been allowed to hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any stake exceeding 5% in the private sector banks would need to be vetted by them.

Currently, India has 88 scheduled commercial banks (SCBs) - 27 public sector banks (that is with the Government of India holding a stake)after merger of New Bank of India in Punjab National Bank in 1993, 29 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 31 foreign banks. They have a combined network of over 53,000 branches and 17,000 ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively

Introduction of many more products and facilities in the banking sector in its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his name which worked for the liberalization of banking practices.

The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and net banking is introduced. The entire system became more convenient and swift. Time is given more importance than money.

In 1995, the Brookings Institution published a paper entitled The Transformation of the U.S. Banking Industry: What a Long, Strange Trip Its Been. Using a breathtaking array of facts and figures, the paper described in great detail the dramatic changes that had occurred in the U.S. commercial banking industry over the 15 years from 1979 to 1994. The banking industry was transformed during that period, according to the paper (p. 127), by the massive reduction in the number of banking organizations; the significant increase in the number of failures; the dramatic rise in off-balance sheet activities; the major expansion in lending to U.S. corporations by foreign banks; the widespread adoption of ATMs; . . . and the opening up of interstate banking markets. The paper went on to explain that most of these major changes in banking could be traced to two developments: (1) the extraordinary number of major regulatory changes during the period, from deposit deregulation in the early 1980s to the relaxation of branching restrictions later in the decade; and (2) clearly identifiable innovations in technology and applied finance, including improvements in information processing and telecommunication technologies, the securitization and sale of bank loans, and the development of derivatives markets. Other research would later confirm the papers assessments and its explanation of the course of events in the banking industry over the period 19791994.

Over the two decades 19842003, the structure of the U.S. banking industry indeed underwent an almost unprecedented transformationone marked by a substantial decline in the number of commercial banks and savings institutions and by a growing concentration of industry assets among a few dozen extremely large financial institutions. This is not news. As mentioned above, the decline in the number of banking organizations has been ongoing for more than two decades and has been well documented in the literature.3 Nevertheless, a brief overview will serve to clarify both the scope of the decline and the increasing concentration of assets among the nations largest banking organizations

At year-end 1984, there were 15,084 banking and thrift organizations (defined as commercial bank and thrift holding companies, independent banks, and independent thrifts). By year-end 2003, that number had fallen to 7,842a decline of almost 48 percent (figure 1). Distributed by size, nearly all the decline occurred in the community bank sector (organizations with less than $1 billion in assets in 2002 dollars), and especially among the smallest size group (less than $100 million in assets in 2002 dollars). Yet the community banking sector still accounts for 94 percent of banking organizations

c. Future of the industry:-

The burden of reporting and other regulatory requirements will fall heavily and disproportionately on small banks unless remedial action is taken. Further advances in information technology will permit the development of new products, BANK, and risk-management techniques but may also pose important competitive and supervisory issues. Nonbank entities will continue to offer bank-like products in competition with banks, raising anew the question of whether banks are still special and, more fundamentally ,whether banks are sufficiently different from nonblank firms to justify the maintenance of a safety net for banks. It is useful, therefore, to try to chart the course of the banking industry in the next five to ten years and to consider what policy issues the industry and regulators will face. The authors of this study do not pretend to be clairvoyant. They are mindful of the many financial predictions that were once offered with confidence but turned out to be wrong or premature. This study is perhaps best described as an exercise in strategic thinking. Its approach is to analyze what has happened in the recent past, consider in detail reasons for expecting recent trends to continue or to change, and draw the consequences for bank and regulatory policies. As always, uncertainties abound, and events that may now appear fairly improbable may in fact shape the future. This paper closeswith a discussion of a number of such possible events. The future-of-banking study addresses three broad questions:

1. What changes in the environment facing banking can be expected in the next five to ten years?

2. What are the prospects for different sectors of the banking industry in this anticipated environment? Because the banking industry is not monolithic and different segments of the industry have, to some degree, different opportunities and vulnerabilities, the study considers separately the prospects for large, complex banking organizations; regional and other midsize banks; community banks; and limited-purpose banks.

3. What policy issues are the industry and regulators likely to face in the years ahead?

CHAPTER-2REVIEW OF LITERATURE AND PROBLEM STATEMENT2.1 Origin of the Organization:-

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 Limited. The Group's principal activities are to provide banking and other financial BANK. The Group operates through four segments: Treasury, Retail Banking, Wholesale Banking and Other Banking Business. The Treasury BANK segment consists of net interest earnings on investments portfolio of the bank and gains or losses on investment operations. The Retail Banking segment serves retail customers through a branch network and other delivery channels. This segment raises deposits from customers and makes loans and provides advisory BANK to customers. The Wholesale Banking segment provides loans and transaction BANK to corporate and institutional customers. The Other Banking Operations segment provides BANK relating to credit cards, debit cards, third party product distribution and primary dealership business and other associated costs. The Bank was Incorporated on 30th August 1994. 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 wasreceived on 10th October 1994 from RBI. 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 (Nat west Group) for subscribing 20% of the banks issued capital and providing technical assistance in relation to the banks proposed banking business.

2.2 Growth and Development of the Organization:-

1994.

On 16.1.1995, 90,79,930 No. of equity shares were allotted to Jarrington Pte. Ltd. Another 400,00,000 equity shares were allotted on private placement basis to Natwest Group on 9.5.1995. 500,00,000 shares were allotted to the public on 9.5.95 The Bank opened its first branch in Ramon House at Churchgate, Mumbai on January 16th.

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

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,

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.

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 inassociation 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 BANK 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 BANK to small and Medium enterprises.

Today HDFC Bank has 1,412 branches and over 3,295 ATMs, in 528 cities in India, and all branches of the bank are linked on an online real-time basis.]As of September 30, 2008 the bank had totalassetsof INR 1006.82 billion.For the fiscal year 2008-09, the bank has reported net profit of Rs.2,244.9 crore, up 41% from the previous fiscal. Total annual earnings of the bank increased by 58% reaching at Rs.19,622.8 crore in 2008-09.

2.3 Present Status of the Organization:-

March 2007March 2008March 2009

Citied228316452

Branches5356841412

ATMs132316053275

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. Today, the bank boasts of as many as 1412 branches and over 3275 ATMs across India.AmalgamationIn 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.

Head OfficeHDFC BankRamon House, 169, Backbay Reclamation,H T Parekh Marg, ChurchgateMumbai - 400020Phone:+91 (22) 66316000, 66636000, 66316060Fax:+91 (22) 22048834Website:www.hdfc.comTech-SavvyHDFC Bank has always prided itself on a highly automated environment, be it in terms of information technology or communication systems. All the braches of the bank boast of online connectivity with the other, ensuring speedy funds transfer for the clients. At the same time, the bank's branch network and Automated Teller Machines (ATMs) allow multi-branch access to retail clients. The bank makes use of its up-to-date technology, along with market position and expertise, to create a competitive advantage and build market share.

Capital StructureAt present, HDFC Bank boasts of an authorized capital of Rs 550 crore (Rs5.5 billion), of this the paid-up amount is Rs 424.6 crore (Rs.4.2 billion). In terms of equity share, the HDFC Group holds 19.4%. Foreign Institutional Investors (FIIs) have around 28% of the equity and about 17.6% is held by the ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue). The bank has about 570,000 shareholders. Its shares find a listing on the Stock Exchange, Mumbai and National Stock Exchange, while its American Depository Shares are listed on the New York Stock Exchange (NYSE), under the symbol 'HDB'

2.4 Functional Departments of the Organisation:-

The functional departments of the organization consists of the HR department, the administrative department and the executive department. The HR department of the organization consists of the people who employ the Persons who they think would be able to do justice with the job handled.The administrative department of the organization consists of the director and the manager of the organization. They preside the organization and control all the operations of the organization such that the organization could run in a smooth and effective manner. The executive department of the organization consists of the various employees Who execute the job undertaken by them. The employees consists of the team leaders, the Corporate financial consultants,. the telecallers, various staffs and junior staffs who are the main structural framework of the organization. The organization thus runs with the effective coordination of the HR department, the administrative department and the executive department such that the supervisors of the organization preside over the subordinate employees to give them directions about fulfilling their works most efficiently and effectively. Technical Consultancy Department: The Technical Consultancy Department is responsible for technical appraisal of industrial projects. The mission of the division is aimed towards the verification of the technical viability of industrial projects and assisting the Funds management in taking the decisions that require technical expertise. Moreover, it is responsible for conducting technical studies and rendering technical consultancy BANK to certain industrial sectors for the purposes of investigating modern technologies and productivity levels for local manufacturing plants.H R Department:

HDFC Human Resources department plans and direct for the employee population as well as they are having the following functions as:- Hiring

Promotions

Reassignments

Position classification and grading

Salary determination

Performance appraisal review and processing

Personnel data entry and records maintenance

Policy development

Work permitting immigration visa program

Workers compensation

Finance Department:

The Finance Manager is responsible for all aspects of the accounting and financial administration of the HDFC, the supervision of the implementation of the HDFC financial policies, directives and procedures and the initiation of the financial plans within the guidelines of HDFC The department contains several distinct sections, each of which is responsible for a proportion of the activities taking place within the finance department.Marketing Consultancy Department:

The Marketing Consultancy Department plays and important role within the Fund as it studies and analyzes marketing information in order to build solid base for management decisions. The division also assists projects sponsors in formulating solid marketing strategies to improve their industries and strengthen their position in the local and international markets.

Research Department:

The Research Department is having the capacity to act through four composing units i.e., the market research unit, economic studies unit, and statistical studies unit. It is the mission of the division to provide support BANK for information and consultancy to the senior management and division in the areas of economic, statistical and marketing information and consultancy through data analysis, processing of economic and statistical data, market research studies and publishing related periodical reports.

2.5 Organization Structure and Organization Chart:-The organization structure of the company HDFC is such that it comprises of the departments and the employees in the hierarchical order so that they are able to perform their functions and duties smoothly and effectively doing their job in a manner in which it should be done. The organization is headed by the administrative department which coordinates and controls the executive department. The executive department is a link from the top and the bottom comprising of the lower level employees such that they work together to fulfill the common objective of getting business from the persons who get in touch with them and see to it that they are provided with the best of the BANK which constitute giving financial advise to providing Account to the customers. The lower level employees and the corporate financial consultants work together to see to it that the database for providing financial BANK to sufficient number of people is made .They work together to see to it that this database is followed and worked upon such that more and more number of people get themselves avail the financial BANK of the organization. Team leaders who form the part of the administrative department of the Organization make sure that the clients that turn up for the financial BANK are dealt with most efficiently and effectively.

The organizational structure is well planned out and it follows a simple format which is follows:

Organization Chart:-Each team lead has a team comprising only of both senior as well as junior market research analyst who aid the team lead in the entire market research process as it has been discussed previously. This is the basic organizational structure followed by HDFC BANK.

2.6 Product and service profile of the organization:-

HDFC Bank offers a bunch of products and services to meet the every need of the people. The company cares for both, individuals as well as corporate and small and medium enterprises. For individuals, the company has a range accounts, investment, and pension scheme, different types of loans and cards that assist the customers. The customers can choose the suitable one from a range of products which will suit their life-stage and needs. For organizations the company has a host of customized solutions that range from Funded services, Non-funded services, Value addition services, Mutual fund etc. These affordable plans apart from providing long term value to the employees help in enhancing

Goodwill of the company. The products of the company are categorized into various sections which are as follows:

In todays world many companies have emerged who have taken a serious note on the importance of market research and he advantages of using it for the better growth and development of the company. Hence, our competitors are those companys who are in the market research and development field as well as the consultancies, since they also make use of market research and business developers.

The products and BANK of our competitors are as follows:

A. Customer Satisfaction Analysis:

Customer analysis involves gathering data about the customers and their characteristics. They also conduct tailored customer satisfaction surveys to gauze customer satisfaction.

B. Risk These BANK are used by the competitors in order to gather external information and research the possible effect on the competitiveness of company.

C. Product Research BANK:The conduction of extensive product research by this service helps the competitors to find out the marketability of a product or service. The research can be utilized to leverage the major decisions of a company on the marketing of its products.

D. Advertising Research BANK:Advertising research strives to gain valuable information about the effects and reach of advertising the products in different forms of media.

Given below are the steps we follow for every assignment we take up:

1. The timetable for the search is indicated and the search process commences.

2. Target companies are examined, using any prior information provided by business development executives in conjunction with sources of information and prospective companies already known to us, augmented with original study by our search team.

3. We maintain a regular channel of communication with the client to keep them apprised of the results emerging.

2.7 Market profile of the organization:-

HDFC Bank Limited provides various financial products and services. It operates in three segments: Retail Banking, Wholesale Banking, and Treasury. The Retail Banking segment provides various deposit products, including savings accounts, current accounts, fixed deposits, and demat accounts. It also offers auto, personal, commercial vehicle, home, gold, and educational loans; loans against securities, property, and rental receivables; and health care finance working capital finance, construction equipment finance, and warehouse receipt loans, as well as credit cards, debit cards, depository, investment advisory, bill payments, and transactional services. In addition, this segment sells third party financial products, such as mutual funds and insurance, as well as distributes life and general insurance products through its tie-ups with insurance companies and mutual fund houses. The wholesale banking segment provides loans, non-fund facilities, and transaction services to large corporate, emerging corporate, small and medium enterprise, supply chain, public sector undertaking, central and state government departments, and institutional customers. It offers deposit and transaction banking products, supply chain financing, working capital and term finance, agricultural loans, and funded, non-funded treasury, and foreign exchange products. These segments services include trade services, cash management, money market, custodial, tax collection, and electronic banking. In addition, it provides correspondent bank services to co-operative banks, private banks, foreign banks, and regional rural banks; and wealth management products for non-resident Indians. The Treasury Services segment operates primarily in areas, such as foreign exchange, money market, interest rate trading, and equities. As of March 31, 2009, HDFC Bank had a network of 1,412 branches and 3,295 automated teller machines in 528 cities in India. The company was founded in 1994 and is based in Mumbai, India.

In todays growing world everyone needs to diversify their business so as to keep in touch with the rapid development. By analyzing the growing concerns of the market, HDFC has clients varying from investment banking sector, retail, web designing companies, etc. Due to this rapid development HDFC Group has many teams working for the above mentioned sectors.

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.

2.8 About Us

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 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.

2.9 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.

2.10 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.

2.11 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 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.

2.12 Distribution Network

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of 1,725 branches spread in 780 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'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 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 4,393 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.

2.13 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 Reserve Bank of India and 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 Managing Director, Mr. Aditya Puri, has been a professional banker for over 25 years, and before joining HDFC Bank in 1994 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. 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.

2.14 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. The Bank's business is supported by scalable and robust systems which ensure that our clients always get the finest services we offer.

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.

2.15 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 ServicesThe Bank's target market ranges from large, blue-chip manufacturing companies in the Indian corporate to 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.

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 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.

TreasuryWithin this business, the bank has three main product areas - Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the liberalisation 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.

2.16 Ratings

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 RatingThe 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 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.

2.17 AwardsHDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian Bank". We realised 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.

It is extremely gratifying that our efforts towards providing customer convenience have been appreciated both nationally and internationally.

2010NDTV Business Leadership Awards 2010

Best Private Sector BankMIS Asia IT Excellence Award 2010

BEST BOTTOM-LINE I.T. CategoryDun & Bradstreet Banking Awards 2010

Overall Best Bank Best Private Sector Bank Best Private Sector Bank in SME Financing Institutional Investor Magazine Poll

HDFC Bank MD, Mr. Aditya Puri among "Asian Captains of Finance 2010" IDRBT Technology 2009 Awards

Winner - 1) IT Infrastructure 2) Use of IT within the Bank Runners-up - IT Governance (Large Banks) ACI Excellence Awards 2010

Highly Commended - Asia Pacific HDFC BankFE-EVI Green Business Leadership Award

Best performer in the Banking categoryCelent's 2010 Banking Innovation Award

Model Bank AwardAvaya Global Connect 2010

Customer Responsiveness Award - Banking & Financial Services categoryForbes Top 2000 Companies

Our Bank at 632nd position and among 130 Global High PerformersFinancial Express - Ernst & Young Survey 2009-10

Best New Private Sector Bank Best in Growth Best in strengthAsian Banker Excellence Awards 2009

Best Retail Bank in India Excellence in Automobile Lending Bank M&A Integration Technology ImplementationThe Asset Triple A Awards

Best Cash Management Bank in IndiaEuromoney Private Banking and Wealth Management Poll 2010

1) Best Local Bank in India (second year in a row) 2) Best Private Banking Services overall (moved up from No. 2 last year)Financial Insights Innovation Awards 2010

Innovation in Branch Operations - Server Consolidation ProjectGlobal Finance Award

Best Trade Finance Provider in India for 20102 Banking Technology Awards 2009

1) Best Risk Management Initiative and 2) Best Use of Business Intelligence.SPJIMR Marketing Impact Awards (SMIA) 2010

2nd PrizeBusiness Today Best Employer Survey

Listed in top 10 Best Employers in the country

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.

2.18 Corporate Governance

HDFC Bank recognizes the importance of good corporate governance, which is generally accepted as a key factor in attaining fairness for all stakeholders and achieving organizational efficiency. This Corporate Governance Policy, therefore, is established to provide a direction and framework for managing and monitoring the bank in accordance with the principles of good corporate governance.

Code of Corporate Governance

Corporate Governance Rating

Composition of the Board

Profiles of Directors

Board Committees

Ownership Rights

Promoters Rights( HDFC LTD.)

Key Shareholders Rights

Listing

Registrars and transfer agents

Nomination Form ( shareholder/s holding shares in Physical form )

Mandate Form ( shareholder/s holding shares in Physical form )

Grievance Redressal

Dividend Policy

Memorandum of Association

Articles of Association

Board Meetings

Quarterly Updates

Fair Practice Code for Lending

Code of Ethics / Conduct

2.19 Details of Sanjauli Branch of HDFC Bank

Note:If you think there are any discrepancies in this information please let us know(info@easywaytech.com) we will verify the information and make necessary changes. Please include all the details of the bank when contacting us.

Bank Name:HDFC Bank

Branch Name:SANJAULI-SHIMLA - HIMACHAL PRADESH

Address:MANTA BUILDING,OPP BUS STAND,SANJAULISHIMLAHIMACHAL PRADESH171006

City:SANJAULI-SHIMLA - HIMACHAL PRADESH

District:SIMLA

State:Himachal Pradesh

Phone:1800 22 1819 / 1800 22 1006

Email:support@hdfcbank.com

Micr Code171240003

IFSC Code:HDFC0000346

Website:http://www.hdfcbank.com

2.20 HDFC BANKMarch 2006March 2007March 2008

Citied228316327

Branches535684761

ATMs132316051977

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.2.21 TECHNOLOGY USED IN HDFC BANKIn the era of globalization each and every sector faced the stiff competition from their rivals. And world also converted into the flat from the globe. After the policy of liberalization and RBI initiatives to take the step for the private sector banks, more and more changes are taking the part into it. And there are create competition between

the private sector banks and public sector bank.

Private sector banks are today used the latest technology for the different transaction of day to day banking life. As we know that Information Technology plays the vital role in the each and every industries and gives the optimum return from the limited resources.

Banks are service industries and today IT gives the innovative Technology application to Banking industries. HDFC BANK is the leader in the industries and today IT and HDFC BANK together combined they reached the sky. New technology changed the mind of the customers and changed the queue concept from the history banking transaction. Today there are different channels are available for the banking transactions.

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

Centralized Processing Units

Derived Economies of Scale

Electronic Straight Through Processing

Reduced Transaction Cost

Data Warehousing , CRM

Improve cost efficiency, Cross sell

Innovative Technology Application

Provide new or superior products

HDFC BANK is the very consistent player in the New private sector banks. New private sector banks to withstand the competition from public sector banks came up with innovative products and superior service.

2001

2005

( % customer initiated Transaction by Channel )

2.22 HDFC BANK PRODUCT AND CUSTOMER SEGMENTS

PERSONAL BANKING

Loan ProductDeposit ProductInvestment & Insurance

Auto Loan

Loan Against Security

Loan Against Property

Personal loan

Credit card

2-wheeler loan

Commercial vehicles finance

Home loans

Retail business banking

Tractor loan

Working Capital Finance

Construction Equipment Finance

Health Care Finance

Education Loan

Gold Loan Saving a/c

Current a/c

Fixed deposit

Demat a/c

Safe Deposit Lockers Mutual Fund

Bonds

Knowledge Centre

Insurance

General and Health Insurance

Equity and Derivatives

Mudra Gold Bar

Cards Payment Services Access To Bank

Credit Card

Debit Card

Prepaid Card

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

Forex Services

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

Product & Services

Trade Services

Forex service Branch Locater

RBI Guidelines

NetSafe

Merchant

Prepaid Refill

Billpay

Visa Billpay

InstaPay

DirectPay

VisaMoney Transfer

eMonies Electronic Funds Transfer

Online Payment of Direct Tax NetBanking

OneView

InstaAlert

MobileBanking

ATM

Phone Banking

Email Statements

Branch Network

WHOLESALE BANKING

Corporate

Small and Medium EnterprisesFinancial Institutions and Trusts

Funded Services

Non Funded Services

Value Added Services

Internet Banking

Funded Services

Non Funded Services

Specialized Services

Value added services

Internet BankingBANKS Clearing Sub-Membership

RTGS submembership

Fund Transfer

ATM Tie-ups

Corporate Salary a/c

Tax Collection

Financial Institutions

Mutual Funds

Stock Brokers

Insurance Companies

Commodities Business

Trusts

BUSINESS MIX

Total Deposits Gross Advances Net Revenue

RetailWholesale

HDFC Bank is a consistent player in the private sector bank and have a well balanced product and business mix in the Indian as well as overseas markets.

Customer segments (retail & wholesale) account for 84% of Net revenues ( FY 2008) Higher retail revenues partly offset by higher operating and credit costs.

Equally well positioned to grow both segments.

NRI SERVICES

Accounts & Deposits

Remittances

Rupee Saving a/c

Rupee Current a/c

Rupee Fixed Deposits

Foreign Currency Deposits

Accounts for Returning Indians North America

UK

Europe

South East Asia

Middle East

Africa

Others

Quick remit

IndiaLink

Cheque LockBox

Telegraphic/ Wire Transfer

Funds Transfer Cheques/DDs/TCs

Investment & Insurances

Loans

Mutual Funds Insurance Private Banking Portfolio Investment Scheme Home Loans

Loans Against Securities

Loans Against Deposits

Gold Credit Card

Payment Services

Access To Bank

NetSafe BillPay InstaPay DirectPay Visa Money Online Donation NetBanking OneView InstaAlert ATM PhoneBanking Email Statements Branch Network

2.23 Business Strategy

HDFC BANK mission is to be "a World Class Indian Bank", benchmarking themselves against international standards and best practices in terms of product offerings, technology, service levels, risk management and audit & compliance. The objective is to build sound customer franchises across distinct businesses so as to be a preferred provider of banking services for target retail and wholesale customer segments, and to achieve a healthy growth in profitability, consistent with the Bank's risk appetite. Bank is committed to do this while ensuring the highest levels of ethical standards, professional integrity, corporate governance and regulatory compliance. Continue to develop new product and technology is the main business strategy of the bank. Maintain good relation with the customers is the main and prime objective of the bank.

HDFC BANK business strategy emphasizes the following :

Increase market share in Indias expanding banking and financial services industry by following a disciplined growth strategy focusing on quality and not on quantity and delivering high quality customer service.

Leverage our technology platform and open scaleable systems to deliver more products to more customers and to control operating costs.

Maintain current high standards for asset quality through disciplined credit risk management.

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

Continue to develop products and services that reduce banks cost of funds.

Focus on high earnings growth with low volatility.

2.24 Inside HDFC Bank

FIVE S , PART OF KAIZEN

WORK PLACE TRANSFORMATION

Focus on effective work place organization

Believe in

Small changes lead to large improvement

Every successful organization have their own strategy to win the race in the competitive market. They use some technique and methodology for smooth running of business. HDFC BANK also aquired the Japanese technique for smooth running of work and effective work place organization.

Five S Part of Kaizen is the technique which is used in the bank For easy and systematic work place and eliminating unnecessary things from the work place.

BENEFIT OF FIVE S

It can be started immediately. Every one has to participate. Five S is an entirely people driven initiatives. Brings in concept of ownership. All wastage are made visible. FIVE S Means :-

S-1SORTSEIRI

S-2SYSTEMATIZESEITON

S-3SPIC-N-SPANSEIRO

S-4STANDARDIZESEIKETSU

S-5SUSTAINSHITSUKE

(1) SORT :-

It focus on eliminating unnecessary items from the work place.

It is excellent way to free up valuable floor space.

It segregate items as per require and wanted.

(2) SYSTEMATIZE :-

Systematize is focus on efficient and effective Storage method. That means it identify, organize and arrange retrieval. It largely focus on good labeling and identification practices.

Objective :- A place for everything and everything in its place.

(3) SPIC- n - SPAN :-

Spic-n-Span focuses on regular clearing and self inspection. It brings in the sense of ownership.

(4) STANDERDIZE :-

It focus on simplification and standardization. It involve standard rules and policies. It establish checklist to facilitates autonomous maintenance of workplace. It assign responsibility for doing various jobs and decide on Five S frequency.

(5) SUSTAIN:- It focuses on defining a new status and standard of organized work place. Sustain means regular training to maintain standards developed under S-4. It brings in self- discipline and commitment towards workplace organization.

In the HDFC BANK each department has their different color coding apply on the different file. Due to this everyone aware about their particular color file which is coding on it and they save their valuable time. It is a part of Kaizen and also included in the system of the Five S. Logic behind it that , the color coding are always differentiate the things from the similar one.

HUMAN RESOURCESThe Banks staffing needs continued to increase during the year particularly in the retail banking businesses in line with the business growth. Total number of employees increased from 14878 as of March31,2006 to 21477 as of March 31, 2007. The Bank continues to focus on training its employees on a continuing basis, both on the job and through training programs conducted by internal and external

faculty.

The Bank has consistently believed that broader employee ownership of its shares has a positive impact on its performance and employee motivation. The Banks employee stock option scheme so far covers around 9000 employees.

RUPEE EARNED = RUPEE SPEND

It is more important for every organization to know about from where and where to spent money. And balanced between these two things rupee earned and rupee spent are required for smooth running of business and financial soundness. This type of watch can control and eliminate the unnecessary spending of business. In this diagram it include both things from where Bank earned Rupee and where to spent.

HDFC BANK earned from the Interest from Advances 51.14 % , Interest from Investment 27.12 %, bank earned commission exchange and brokerage of 15.25 %. These are the major earning sources of the bank. Bank also earned from the Forex and Derivatives and some other Interest Income. Bank spent 39.75 % on Interest Expense, 30.27 % on Operating Expense and 14.58 % on Provision. Bank also spent Dividend and Tax on dividend, Loss on Investment , Tax. As we discuss above that balancing is must between these two for every organization especially in the era of globalization where there are stiff competition among various market players.

2.25 Recent Developments

The Reserve Bank of India has approved the scheme of amalgamation of Centurion Bank of Punjab Ltd. With HDFC Bank Ltd. With effect from May 23, 2008. All the branches of Centurion Bank of Punjab will function as branches of HDFC Bank with effect from May 23, 2008. With RBIs approval, all requisite statutory and regulatory approvals for the merger have been obtained.

The combined entity would have a nationwide network of 1167 branches; a strong deposit base of around Rs.1,22,000 crores and net advances of around Rs.89,000 crores. The balance sheet size of the combined entity would be over Rs.1,63,000 crores.

Merger with Centurion Bank of Punjab Limited

On March 27, 2008, the shareholders of the Bank accorded their consent to a scheme of amalgamation of Centurion Bank of Punjab Limited with HDFC Bank Limited. The shareholders of the Bank approved the issuance of one equity share of Rs.10/- each of HDFC Bank Limited for every 29 equity shares of Re. 1/- each held in Centurion Bank of Punjab Limited. This is subject to receipt of Approvals from the Reserve Bank of India, stock exchanges and Other requisite statutory and regulatory authorities. The shareholders Also accorded their consent to issue equity shares and/or warrants convertible into equity shares at the rate of Rs.1,530.13 each to HDFC Limited and/or other promoter group companies on preferential basis, subject to final regulatory approvals in this regard. The Shareholders of the Bank have also approved an increase in the authorized capital from Rs.450 crores to Rs.550 crores.

Promoted in 1995 by Housing Development Finance Corporation (HDFC), Indias leading housing finance company, HDFC Bank is one of Indias premier banks providing a wide range of financial products and services to its over 11 million customers across hundreds of Indian cities using multiple distribution channels including a pan-India network of branches, ATMs, phone banking, net banking and mobile banking. Within a relatively short span of time, the bank has emerged as a leading player in retail banking, wholesale banking, and treasury operations, its three principal business segments.

The banks competitive strength clearly lies in the use of technology and the ability to deliver world-class service with rapid response time.Over the last 13 years, the bank has successfully gained market share in its target customer franchises while maintaining healthy profitability and asset quality.

As on March 31, 2008, the Bank had a network of 761 branches and 1,977 ATMs in 327 cities. For the year ended March 31, 2008, the Bank reported a net profit of INR 15.90 billion (Rs.1590.2crore), up 39.3%, over the corresponding year ended March 31, 2007.

As of March 31, 2008 total deposits were INR 1007.69 billion (Rs.100,769 crore) up 47.5% over the corresponding year ended March 31, 2007. Total balance sheet size too grew by 46.0% to INR 1,331.77 billion (133177 crore). Leading Indian and international Publications have recognized the bank for its performance and

quality.

Centurion Bank of Punjab is one of the leading new generation private sector banks in India. The bank serves individual consumers, small and medium businesses and large corporations with a full range of financial products and services for investing, lending and advice on financial planning. The bank offers its customers an array of wealth management products such as mutual funds, life and general insurance and has established a leadership position. The bank is also a strong player in foreign exchange services, personal loans, mortgages and agricultural loans.

Additionally the bank offers a full suite of NRI banking products to Overseas Indians. On 29th August 2007, Centurion Bank of Punjab merged with Lord Krishna Bank (LKB), post obtaining all requisite statutory and regulatory approvals. This merger has further strengthened the geographical reach of the Bank in major towns and cities across the country, especially in the State of Kerala, in addition to its existing dominance in the northern part of the country. Centurion Bank of Punjab now operates on a strong nationwide franchise of 404 branches and 452 ATMs in 190 locations across the country, supported by employee base of over 7,500 employees.In addition to being listed on the major Indian stock exchanges,

the Banks shares are also listed on the Luxembourg Stock Exchange.

2.26 ACHIEVEMENTSBusiness Today-Monitor Group survey

One of India's "Most Innovative Companies"

Financial Express-Ernst & Young Award Best Bank Award in the Private Sector category

Global HR Excellence Awards - Asia Pacific HRM Congress:'Employer Brand of the Year 2007 -2008' Award - First Runner up, & many more

Business Today

'Best Bank' Award

Dun & Bradstreet American Express Corporate Best Bank Award 2007'Corporate Best Bank' Award

The Bombay Stock Exchange and Nasscom Foundation's Business for Social Responsibility Awards 2007'Best Corporate Social Responsibility Practice' Award

Outlook Money & NDTV Profit

Best Bank Award in the Private sector category.

The Asian Banker Excellence in Retail Financial Services AwardsBest Retail Bank in India

Asian BankerHDFC BANK Managing Director Aditya Puri wins the Leadership Achievement Award for India

CHAPTER- 3 OBJECTIVE OF THE PROPOSED STUDY

To find out the customer preferences while opening Savings A/c.

To study brand image of the bank.

To increase the business of the bank.

To know about product & services offered at HDFC Bank.

To financial sector is one off the booming & increasing sector in India.

CHAPTER- 4 RESEARCH METHODOLOGY

4.1 Statement of research problem:-

PROBLEM DEFINATION:

Sales Executives were with good background human being and through rigorous process of recruitment but still not able to perform up to the expectation level of company, HR is not able to sort out the problem why the performance is not coming even after giving the full marketing support. The communication technique and dealing with the customers is also a problem to the sales

executives.

4-2 OBJECTIVES OF RESEARCH PROJECT:

RESEARCH OBJECTIVES:

To find out the customer preferences while opening Savings A/c.

To study brand image of the bank.

To increase the business of the bank.

To know about product & services offered at HDFC Bank.

To financial sector is one off the booming & increasing sector in India.

4.3 Research Design and MethodologyPrimary data source: All the people from different profession were personally visited and interviewed. They were the main source of Primary data. The method of collection of primary data was direct personal interview through a structured questionnaire.Secondary Data Source: It was collected from internal sources. The secondary data was collected on the basis of organizational file, official records, news papers, magazines, management books, preserved information in the companys database and website of the company.

SAMPLING PLAN:

Since it is not possible to study whole universe, it becomes necessary to take sample from the universe to know about its characteristics.

Sampling Units: Customers

Sample Technique: Random Sampling.

Research Instrument: Structured Questionnaire.

Contact Method: Personal Interview.

SAMPLE SIZE:

My sample size for this project was 100 respondents. Since it was not possible to cover the whole universe in the available time period, it was necessary for me to take a sample size of 100 respondents. RESEARCH LIMITATIONS:

It was not possible to understand thoroughly about the different marketing aspects of the Financial Consultant within 60 days. As stipend, money was not given it was difficult to continue the project work. All the work was limited in some limited areas of Delhi so the findings should not be generalized. The area of research was Delhi and it was too vast an area to cover within 60 days.

All the findings and conclusions obtained are based on the survey done in the working area within the time limit. I tried to select the sample representative of the whole group during my job training. I have collected data from people linked with different profession at Bangalore.

4.4 Data AnalysisQ 1:What is your Monthly Transaction in your account ?

Monthly transactionsNo. of respondents% (percentage)

5-20 lakhs2828%

20-40 lakhs5959%

40 lakhs and above1313%

Total 100100%

Chart 1:

Analysis:

59% respondents gave their answer in 20-40 lakhs transactions.

28% respondents gave their answer in 0-20 lakhs transactions.

13% respondents gave their answer in 40 lakhs and above transactions.

Question 2Do you have a Saving Account?

ResponseNo. of respondents%

Yes9797%

No33%

Chart 2:

Analysis: 97% respondents have the saving accounts and only 3% do not have saving account.

Question 3

In Which Bank?

BankNo. of respondents%

Kotak mahindra33%

HDFC3333%

Co-operative4848%

ICICI55%

Nationalized3131%

Chart 3

Analysis: 48% have saving account in co-operative, 3% in kotak mahindra, 33% in HDFC, 5% in ICICI, and 31% in nationalized bank.

Question 4Which Factors do you consider for opening a Savings Account?

No. of respondents%

Accessibility1010

Minimum balance2020

DD/pay order 1313

Free cheque1010

Debit card88

Cash deposit77

Cheque pick up22

Net banking1616

Mobile banking77

At per cheque33

NEFT22

RTGS22

Total100100

Chart 4

Analysis:Respondents gave their answer

10% respondents gave their answer in accessibility, 20% Minimum balance, 13 % DD/pay order,10% Free cheque, 8% Debit card, 7% Cash deposit, 2% Cheque pick up, 16% Net banking, 7% Mobile banking, 3% At per cheque, 2% NEFT, 2% RTGS.

Question 5Which mode of transaction do you avail of frequently?

ResponseNo. of response%

Pay order1212

DD2222

Cheque7676

Total100100

Chart 5

Analysis:12% Response in pay order, 32% like DD, and 76 % costumer want from cheque mode.

Question 6

Which types of transaction do you make ?

ResponseNo. of respondents%

Intercity3333

Outside city1515

Both5252

Total100100

Chart 6

Analysis:

33% account holder transaction intercity, 52 % Both, and 15% outside city.Question 7

Does your bank assist you in case of any problem?

ResponseNo. of respondents%

Yes9090

No1010

Total100100

Chart 7

Analysis:

90% say yes bank will assist you in case of any problem, only 10% say no.

4.5 Summary of Findings

The final draft of the questionnaire was prepared on the basis of the observations from the pilot study. These were then finally filled by 100 customer, for the conclusive study.

Finally the data collected was fed into the data analysis to be analyzed using statistical techniques.

Types of Primary Data collected:

Socioeconomic Characteristics:

characteristics are sometimes called states of being in that they represent the type of people. The factors on which we are working are occupation. Monthly transaction is also an important parameter but it is difficult to verify. Although the amount of money that business unit earns in a month is an absolute, not a relative quantity but it is a sensitive topic in our society and it is difficult to determine.

Attitudes/Opinions:

Through the questionnaire we have tried to get hold of business preference, inclination and requirement. Attitude is an important notion in the marketing literature, since it is generally thought that the attitudes are related to the behavior of businessmen.

Motivation:

Through the questionnaire we have tried to find the hidden need or want of businessmen and have tried to find if these people can be tapped as the potential customer for HDFC Bank.

Behavior:

Behavior concerns what subjects have done or are doing. Through the questionnaire we have tried to find out the behavior of the individuals regarding the product and their responses. If the responses are favorable then the person can be said to be our potential customer. The primary data serves as an important tool to measure the behavioral trend of the customer. It helps in answering some of the vital Questions.

Obtaining the Primary Data:

The data collection was primarily done through communication. Communication involves questioning respondents to secure the desired information, using a data collection instrument called questionnaire. The questions were in writing and so were the responses.Versatility:

It is the ability of a technique to collect the information on the many types of primary data of interest to marketers. It has also been found that some of the people do not answer truthfully to all the questions especially in the case of the personal details

CHAPTER- 5 QUESTIONNNAIRE

Name of Respondent

_________________________________

Contact No.

_______________________

1. Monthly Transaction?

________________________________________________

2. Do you have saving Account?

(a) Yes (b) No

3. If Yes Which banks-

ICICI

HDFC

Kotak Mahindra Bank

Nationalized

Other Banks _________________

Co-Operative Banks___________________

4. Which Factors do you consider for opening a saving Account

Accessibility

Minimum Balance

DD/ Pay Order

Free Cheque

Debit Card

Cash Deposit

5. Which mode of transaction do you avail frequently?

(a) Cheque ( b) DD (c) Pay Order

6. Which type of transaction do you made

(a) Inter city (b) Intra city (c) Both

7. Does your bank assist you in case of any problem

(a) Yes (b) No

8.. What are the additional Benefits do you expect from a Saving Account?

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Date___________________ Place__________________

Signature

CHAPTER- 6 SCOPE, RELEVANCE AND LIMITATIONS OF THE PROPOSED STUDY6.1 Scope

1. The time bound period is the major limitation in research projects.

2. Due to the financial and time constraints a cluster analysis of the population so as to get better results was not feasible.

3. The research conduct in Bangalore city only.

4. It was difficult to break the ice with the common people initially. It was a daunting task to convince them to fill in the personal details of the questionnaire where they have to mention the monthly income, occupation etc.

5. To convince the people for a proper interviewing process is also difficult.

6.2 LIMITATIONS Some of the limitations of the project are listed as below:1. The time bound period is the major limitation in research projects.

2. Due to the financial and time constraints a cluster analysis of the population so as to get better results was not feasible.

3. The research conduct in Shimla city only.

4. It was difficult to break the ice with the common people initially. It was a daunting task to convince them to fill in the personal details of the questionnaire where they have to mention the monthly income, occupation etc.

5. To convince the people for a proper interviewing process is also difficult.

6. Compilation of data on competitor analysis was difficult due to non-availability of correct information.

7. The figures have been taken as approximations.

CHAPTER- 7 SUMMARY AND CONCLUSIONS

7.1Summary of Learning Experience

Almost all the Banks offer similar features and facilities with their Savings accounts. There are certain reasons for existing customers of Saving Account of any Bank to shift to another Bank.

The level of service in terms of delivering whatever is promised, fast response in case of problems, is the most important benefit that the customers seek, from the Bank they have a Saving Account with.

1. Network reach and visibility of a Bank is a very important criterion for the customer while opening a Saving Account. We can also conclude from our analysis that network reach in terms of Branches and ATMs is directly proportional to the market share in case of Private Players.

2. In case of a new customer, if a bank approaches it first for opening a Saving Account with them, then there is a good chance for the bank of getting many future businesses and cross sales from the deal.

3. Aggressive Marketing is the key to increasing the market share in this area, since the market has a lot of potential both in terms of untapped market .

7.2 Conclusions and Recommendations

1. Contract Sales Executive (CSE) should be trained to explain the product features and its value added services to make customers product selection convenient.

2. Contract Sales Executive (CSE) should recommend right product to the right customer so as to ensure a high degree of satisfaction among the customer.

3. The bank needs to make people aware about there products and the basic benefits they can derive out of it. And also the differential features of its savings account as compared to other banks.70% of the people did not even know about the concept, benefits and features of its saving accounts.

4. The bank should also target small business unit for whom maintenance of the AQB is not a problem as this segment is not much penetrated.

5. Though the bank offers free doorstep banking once a day this fact is also not known to many customers or they still do not trust this service what ever the reason the bank can popularize this service to gain an edge over nationalized banks and Co-operative Banks.

6. Quality of service has been rated highly important by all demofigureic factors as a reason for banking with a particular bank, Standard Chartered needs to improve the services provided to its existing customers before attracting more in the future and use word of mouth as a promotional tool to increase the sales potential of its savings account.

CHAPTER- 8 References

BOOKS:-Research Methodology

:

C.R KothariEvolving Practices in Financial

Allen I. KrautManagement: Responses to a

Changing World of Work

Essentials of Financial Management

Shaun TysonMAGZINESOut Look Money

May 2005Business World

February 2006In Touch With Life

February 2006(in house newsletter by HDFC-SLIC) WEBSITES

www.hdfcbank.com

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