HDFC BANKWe Understand Your World

BY – AMIT KUMARROLL NO. – 51BBA-MBA (INT)SECTION - A

AFTER 20 MINUTES………….. BANKING ITS HISTORY BANKING IN INDIA MAJOR PLAYERS HDFC BANK PROFILE BRANCH NETWORK BOARD OF DIRECTORS MISSON BUSINESS STRATEGY PRODUCT & SERVICES

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Technology used in HDFC Bank Capital structure Growth trajectory competetor Achievements & milestones Future plans STP SWOT analysis

BANKING A bank is a financial institution whose primary

activity is to act as a payment agent for customers and to borrow and lend money.

Banks are important players in financial markets and offer financial services such as investment funds.

In some countries such as GERMANY, banks are the primary owners of industrial corporations .

While in other countries such as the UNITED STATES banks are prohibited from owning non-financial companies. 

HISTORY OF BANKING The first banks were probably the

religious temples of the ancient world. It was probably established sometime

during the third millennium B.C. Banks probably predated the invention of money.

There are extant records of loans from the 18th century BC in Babylon that were made by temple priests or monks to merchants.

BANKING IN INDIA Banking in India originated in the last

decades of the 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 BANK OF CALCUTTA in June 1806.

The first fully Indian owned bank was the ALLAHABAD BANK, established in 1865.

Major players in India State Bank of India HDFC Bank ICICI Bank HSBC Bank IDBI Bank City Bank Axis Bank Punjab national Bank ING Vysya Bank Union Bank of India

HDFC BANK

Housing Development Finance Corporation Founded in 1977 by Hasmukh bhai Parakh HDFC Bank was incorporated in August 1994 Among the first in new generation commercial

banks Registered office in Mumbai, India Promoted by HDFC, the parent company IPO in India in 1995 Listed in NSE, BSE, NYSE(ADR)

PROFILE OF HDFC BANK Type Public Founded 1994 Headquarters HDFC Bank Ltd.,

Mumbai, India Industry Banking, Insurance,

Capital Markets and allied industries

Products Loans, Credit Cards, Savings, Investment vehicles, Insurance etc.

Net revenue Rs.2,509.6 crores Net income Rs. 4,634.3 crores Website www.hdfcbank.com

NETWORK 761 branches 1977 ATM’s in the country 327 cities in India All branches are OLRT

connected 16 branches in Middle east 6 in Africa Representative offices in

Hong Kong, NewYork, London & Singapore

BOARD OF DIRECTORS

Mr. Aditya Puri, Managing director

Mr. Jagdish Kapoor , chairman of HDFC Bank.

Mr. Harish Engineer, Executive directors

Keki Mistry, Managing Director

Mr. A Rajan, Country Head-Operations

Mr. Rahul Bhagat, Vice president

Mission World Class Indian Bank Benchmarking against international

standards. Best practices in terms of product

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

To build sound customer franchises across distinct businesses.

Business Strategy Increasing market share in India’s

expanding banking. Delivering high quality customer service. Delivering more products to more

customers. Maintaining current high standards for asset

quality through disciplined credit risk management.

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

Product & services Travellers Cheques credit card home loan personal loan Foreign Currency Cash Foreign Currency Demand Drafts Cheque Deposits Remittances Trade Services Mutual funds Insurance

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Travellers Cheques : Travellers Cheques are a safe and easy way to protect your money when you travel. You can encash them only when you need to, and only against your signature, unlike cash which can be stolen and misused by anybody, immediately.

Credit Card : Credit Card can be used for all your requirements, be it shopping, eating out, holidaying, fuelling up your vehicle, railway ticket reservations - just about any financial requirement, planned .

Home loan : Home loans for individual to purchase or construct houses. 

Personal Loans : The procedure of personal loan is simple, documentation is minimal and approval is quick.

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Foreign Currency Cash : Foreign Currency Cash is a convenient way of meeting personal expenses along your journey, paying for taxis / internal travel, food expenses etc.

Foreign Currency Demand Drafts : Demand Drafts are issued in seven currencies like United States Dollars (USD), Great Britain Pounds (GBP), EURO, Japanese Yen (JPY), Australian Dollars (AUD), Canadian dollars (CAD) and New Zealand Dollars (NZD).

Foreign Currency Cheque Deposits : We can directly deposit our foreign currency cheques in to our saving or current account.

Remittances : HDFC Bank offers the remittance facilities by which we can send and receive money to anyone. They are categorized depending on location and the urgency with which we want the money transferred.

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• Trade Service : HDFC Bank have people with high level of expertise and experience in trade services to provide services to suit specific requirements and structure solutions for business needs.

• HDFC Bank have 500 branches for trade services.

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

• Insurance :  HDFC Bank offers a world of choice in insurance. Like – children future plans, retirements plans, standard life, etc.

Technology – New is better !!!

Latest Technology

Plans to deploy connections, with built-in redundancy in the network

Tested CDMA and GSM solutions—specially for ATMs as they consume very small bandwidths

For corporate and retail banking the bank uses Flexcube and Finware of i-flex respectively .

For disaster recovery the data at the main center is replicated in real-time on-line at the Chennai site

Security

Security in banking, to a large extent, is built into the software or the application itself.

The data that are being transferred to the regional centres or from internet banking request, are encrypted

Capital Structure

The authorized capital of HDFC Bank is Rs550 crore (Rs5.5 billion).

The paid-up capital is Rs424.6 crore (Rs.4.2 billion).

The HDFC Group holds 19.4% of the bank's equity

Roughly 28% of the equity is held by Foreign Institutional Investors (FIIs) and the bank has about 570,000 shareholders

GROWTH TRAJECTORY !!!

Competition !!! - The way ahead

Achievements HDFC Bank merged with TIMES BANK in 2000. HDFC Bank wins the Asian Banker Best Retail

Bank in India Award 2008 for outstanding performance.

HDFC Bank chosen as one of Asia Pacific’s best 50 companies by Forbes magazine.

'Best Bank in the Private Sector 2008.' HDFC Bank ties up with Qatar National Bank. HDFC Bank merged with CENTURION BANK OF

PUNJAB in 2007.

Milestones !!!!

HDFC follows the model of a sound corporate governance

The bank was amongst the first four companies, which subjected itself to a Corporate Governance and Value Creation (GVC) rating by CRISIL

A very sound and effective risk management system in place to create a less risk assets portfolio.

Uses Neural Technologies for risk management in its Credit Cards and other Retail Assets portfolios

Future plans

Launch 250 new branches. HDFC Bank plans to raise Rs 4,200

crore in capital. Relocate branches to un-banked rural

Punjab. HDFC Bank plans to set up NBFC.

Segmentation strategy Demographics variables

Location - Metros & divisional cities

Occupation- Business person- Salaried class (both govt. & private)

Age- Senior citizens- Minor

psychographic variables Lifestyle

- People who believes in modern banking with higher set of service i. e. internet banking (incontact, mobile refill, travel currency card etc.)

Targeting strategy Target market

Corporate banking market : this market target the industries & fulfill their financial needs.

Capital market : this segment is targeted on the long term needs of the individual as well as of industries.

Retail banking market : this segment is for retail investors & provide them short term financial credit for their personal, house hold needs.

Positioning strategy HDFC Bank has positioned itself as a bank

which gives higher standard of services through product innovation for the diverse need of individual & corporate clients. So they want to highlight following points in their positioning segment :

-Customer centric

-Service oriented

-Product innovation

SWOT analysis

Strengths• Support of various promoters• High level of services• Knowledge of Indian Market

Weaknesses

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Opportunities- Growing Indian banking sector.- People are becoming more service oriented- In the global market.

Threats• From various competitors

-Foreign banks-govt. banks

• Future market trends.

Any Questions?