Size of India Financial services India has a rapidly growing banking and financial

service sector.

Market capitalisation (NSE) of over US$1.6 billion as of Dec 2007Dec 2007

Mutual funds assets under management of US$1.30 billion in 2007

Over 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 Overview Currently 2.5 % of the GDP

Assets under Management approx 90% of GDP

If growth and value added services are included then it would be 5% of GDPwould be 5% of GDP

Retail Banking Stands @ $6.4 bn

Total 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 48Foreign Banks 29 48

Total 82 758

Technology in Banking IT 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. 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 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 Organisation Trade and Finance

1 Tr finance RM has 5 branches under him

Current Account trade finance TT Bills

Private Banking (Independent Structure)

Report to TL who reports directly to Group Head who reports to Aditya Puri

Sales Manager Maintain and grow branch business

Set Up ATMs

Organize for short term deposit schemes

Closely interact with DSAs to achieve designated Closely interact with DSAs to achieve designated targets

Sales Channels Direct

Through Banking Chanels

Outsourced DSAs

Either thru Outbound call centres. Either thru Outbound call centres.

Customer Direct Contact

Recruiting and selection practices Marketing HDFC is conservative

Not good pay masters but good incentives

Direct approaches are preferred e.g. thru the website

Through Reference Through Reference

Recruitment thru placement Companies on a case to case basis for higher executives.

Selection Practices Graduates with a passion to sell banking products and

knowledge of Capital Markets

MBAs are prefered.

Candidates should also know basic banking products Candidates should also know basic banking products

Training Product or Sales channel depnedant

On the Job Training

They have a single mentor assigned in terms of the Team LeaderTeam Leader

Special Training prgms for management trainees

Evaluation and compensation Productivity is measured in the number of cross sales

they do

In addition to the basic Banking Products like

Savings and Current Accounts Savings and Current Accounts

FDs etc.

They have to sell

Mutual Funds

Life Insurance

Non-Life Insurance

Targets Based on the Banking Deposit base

Personal

Commercial

Unethical way of deciding targets Unethical way of deciding targets

Refer to the customers account deposits and net worth

Find out how much money is being across to and from customers personal accounts in other banks

Value-added services Personal Banking

Investment Advice

Helps in a home search too

Customer Relations Management Customer 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.Customer Satisfaction Index.