Size of India Financial servicesIndia has a rapidly growing banking and

financial service sector. Market capitalisation (NSE) of over US$1.6

billion as of Dec 2007Mutual funds assets under management of

US$1.30 billion in 2007Over 44 venture capital and over 100 Private

Equity Funds are in India (still growing)IFS accounted for 9.7% of India's GDP.

Banking Segment OverviewCurrently 2.5 % of the GDPAssets under Management approx 90% of

GDPIf growth and value added services are

included then it would be 5% of GDPRetail Banking Stands @ $6.4 bnTotal Banking > $100 bn

Banking Segment Overview contd….Banks No. of Banks Total Assets US $

Billion

Public Sector Banks 28 575

Indian Private Banks 25 175

Foreign Banks 29 48

Total 82 758

Technology in BankingIT spend by banking and financial services

industry in USA is 7% of the revenue as against around 1% by Indian Banks.

Shared ATM network to reduce costs, increase reach.

RTGS system running since 2004 and covers 15,000 branches

Adoption of Technology to lead to business transformation and cost advantage in the long term.

ABOUT HDFC

Sales Organisation• Sales Channel in the Branch Area Level

– Every Branch has its own sales staff– Cross Area approach is not allowed– Contract staff and staff from sister concern Adro

• Personal Bankers in every branch• Preferred Banking RM account balance of 5L to

25L• Service RMs Take care of service• Imperior Banking RM (25L to 50L)• Wealth management A/c Bal 1cr +• NRI Desk - NR Banking relationship Bankers and

they cater to Private Banking customers also.

Sales OrganisationTrade and Finance

1 Tr finance RM has 5 branches under himCurrent Account trade finance TT Bills

Private Banking (Independent Structure)Report to TL who reports directly to Group

Head who reports to Aditya Puri

Sales ManagerMaintain and grow branch businessSet Up ATMsOrganize for short term deposit schemesClosely interact with DSAs to achieve

designated targets

Sales ChannelsDirect

Through Banking ChanelsOutsourced DSAs

Either thru Outbound call centres.Customer Direct Contact

Recruiting and selection practicesMarketing HDFC is conservativeNot good pay masters but good incentivesDirect approaches are preferred e.g. thru the

websiteThrough ReferenceRecruitment thru placement Companies on a

case to case basis for higher executives.

Selection PracticesGraduates with a passion to sell banking

products and knowledge of Capital MarketsMBAs are prefered.Candidates should also know basic banking

products

TrainingProduct or Sales channel depnedantOn the Job TrainingThey have a single mentor assigned in terms

of the Team LeaderSpecial Training prgms for management

trainees

Evaluation and compensationProductivity is measured in the number of

cross sales they doIn addition to the basic Banking Products like

Savings and Current Accounts FDs etc.

They have to sell Mutual Funds Life Insurance Non-Life Insurance

TargetsBased on the Banking Deposit base

PersonalCommercial

Unethical way of deciding targetsRefer to the customers account deposits and

net worthFind out how much money is being across to

and from customers personal accounts in other banks

Value-added servicesPersonal BankingInvestment AdviceHelps in a home search too

Customer Relations ManagementCustomer Complaint is first priority and sales

people are also responsible for customer satisfaction.

People are taken to task and even fired on basis of Customer Satisfaction Index.