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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
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
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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