summer project of rishi to sastry sir

8/9/2019 Summer Project of Rishi to Sastry Sir

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OVERALLMARKET SURVEY

OF HDFC BANK IN ROURKELA

FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

(M.B.A)

SUBMITTED TO

SUBMITTED BY: RISHIKESH GHOSH

Reg. no: 0606260143 (2006-2008)

UNDER THE GUIDENCE OF

COMPANY (HDFC BANK) FACULTY GUIDE

AMEYA KR. MOHANTY PROF. S.S. SASTRY

ACKNOWLEDGEMENT

The preparation of project report depends on the cooperation, coordination & combined effort of

several persons. I sincerely appreciate the effort of different respected persons for providing the support

that I required in preparing this report, without this help it could not have been possible. I express my

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deep sense of gratitude to sri Ameya kumar Mohanty & Mr. Akhaya kumar Padhi (DSM) for giving

me an opportunity to do summer project in their esteemed organization.I wish to place sincere thanks to

S.S Sastry Sir, who has also been our project guide, for his immense help, cooperation, magnificent

guidance & valuable suggestions. In spite of being such a busy person he always gave me his valuabletime to guide me in my project. He has been a constant source of inspiration for me. We are also

thankful to Dr. K.K Patra(Dean Admn) Mr, P.s kar & all my respected Professors & other staffs of the

MBA Dept. of Rourkela Institute of Management Studies, for their kind support & guidance.

Last but not the least; I am grateful to all the staff-members of HDFC. I came across during my project

period, my loving parents & above all The Almighty, for helping me to proceed with the project &

overcome all hurdles.

RISHIKESH GHOSH

REGD. NO-0606260143

MBA (RIMS)

DECLARATION

I, Mr. Rishikesh Ghosh here by declare that summer project report written & submitted to Rourkela

Institute of Management Studies by me in my own & its copy has not been reproduced to any other

institution/university or published anywhere else.

I understand that such reproducing is liable for punishment in anyway the university deem fit.

Place: - Rourkela Rishikesh Ghosh

Date: - MBA (RIMS)

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CERTIFICATE

This is to certify that the project titled OVERALL MARKET SURVEY OF HDFC

BANK IN ROURKELA is an original work of Rishikesh Ghosh, student of Rourkela

Institute Management Studies, Rourkela and is being submitted in partial fulfillment for

the award of Master Of Business Administration degree of Biju Pattanaik University of

Technology, Rourkela. The report has not been submitted earlier either to this University

or any other University/Institution for the partial fulfillment of the requirement of a

course of study.

Rishikesh Ghosh

Name & Signature of the student

Date:

Regd. No. 0606260143

Session: 2006-08

Signature of the project guide

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PREFACE

The Summer Project Report is an essential feature of the 2-Year Full Time MBAProgrammed of the Rourkela Institutes of Management Studies, Rourkela. As such we

had to work for 2 months during the summer training period with HDFC at Bisra Chowk

Rourkela.The topic of the project is OVERALL MARKET SURVEY OF HDFC

BANK IN ROURKELA.

During the training, I gained lot of practical knowledge & valuable information from field study. I

came across & I learnt valuable things from several persons while doing survey in Rourkela area, where I

was posted. The time span was too short to explore & gather informations & to prepare a detailed report.

Nevertheless I have tried to prepare only a brief report, which has increased my knowledge, concept &

experience.

Contents Page

CHAPTER-1 10-10

1) INTRODUCTION

2) MISSION 11-13

3) HISTORY 14-28

4) BOARD OF DIRECTORS 29-30

CHAPTER-2

1)PRODUCTS 31-38

2)MARKET AND COMPETITORS 40-41

3)MARKET SURVEY 42-43

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CHAPTER-3

1)SWOT ANALYSIS 46-47

2)RESEARCH METHODOLOGY 47-51

3)TECHNOLOGY IN BANKING 52-58

4)RECENT DEVELOPMENTS 58-59

5)SHARE HOLDING PATTERN OF HDFC 60-60

6)FINDINGS 61-61

7)SUGGESTIONS 61-62

8)CONCLUSION 62-63

9)BIBLIOGRAPHIE 64-64

10) APPENDIX 65-66

CHAPTER-1

1)INTRODUCTION

2)MISSION

3)HISTORY

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4)BOARD OF DIRECTORS

INTRODUCTION

HDFC Bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered

office in Mumbai, India. The Bank commenced operations as a Scheduled Commercial Bank in

January 1995.

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 BankingIndustryin1994.Headquartered in Mumbai, HDFC Bank, has a network of over 531 branches spread over 228 cities

across India. All branches are linked on an online real-time basis. Customers in over 120 locations are

serviced through Telephone Banking. The Bank also has a network of about over 1054 networked

ATMs across these cities. HDFC Bank's ATM network can be accessed by all domestic and

international Visa / MasterCard, Visa Electron / Maestro, Plus / Cirrus and AmericanExpressCredit

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Charge cardholders.

HDFC Bank has won many awards for its excellent service. Major among them are "Best Bank in

India" by Hong Kong-based Finance Asia magazine in 2005 and "Company of the Year" Award forCorporate Excellence 2004-05.

MAN WITH A MISSION

An extract from the book 'A Tribute'

If ever there was a man with a mission it was Hasmukhbhai Parekh, our Founder and

Chairman-Eeritus, who leftm this earthly abode on November 18, 1994 .

Born in a traditional banking family in Surat, Gujarat, Mr. Parekh started his financial

career at Harkisandass Lukhmidass a leading stock broking firm. The firm closed down

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in the late seventies, but, long before that, he went on to become a towering figure on the

Indian financial scene.

In 1956 he began his lifelong financial affair with the economic world, as General

Manager of the newly-formed Industrial Credit and Investment Corporation of India(ICICI). He rose to become Chairman and continued so till his retirement in 1972.

At the ripe age of 60, Hasmukhbhai started his second dynamic life, even more illustrious

than his first. His vision for mortgage finance for housing, gave birth to the Housing

Development Finance Corporation it was a trend-setter for housing finance in the whole

Asian continent.

He was a true development banker. His building up HDFC without any governmentassistance, is itself a brilliant chapter in financial history. His wisdom and warmth drew

people from all walks of life to him, for advice, guidance and inspiration.

A soft spoken man of few words, Mr. Parekh nevertheless held strong and definite views

with a quiet conviction. He was always concerned with building bridges, improving and

encouraging communication between people.

He was also a writer in his own right. There are over 200 published articles by him, fullof incisive comments on finance and economics. In 1953 he brought out a volume called:

The Bombay Money Market. It detailed the intricate working of the Indian money

market. His works in Gujarati Hirane Patro, Hirane Vadhu Patro occupy pride of

place in Gujarati literature. In 1992, the Government of India honoured him with the

Padma Bhushan Award. The London School of Economics & Political Science conferred

on him an Honorary Fellowship.

But there was much more to the man than his financial genius. In his own unassuming

way, Hasmukhbhai devoted all his life to raising resources for philanthropic causes. He

was one of the Founder Members of the Centre for Advancement of Philanthropy, and its

Chairman till 1993. He took active interest in the Bombay Community Public Trust,

designed specifically to serve the needs of the citys underprivileged citizens.

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When Mr. Deepak Parekh took over as Chairman from Hasmukhbhai, he said: Taking

over from H.T. Parekh is a formidable task; his vision brought about not only an

institution, but an entire concept which has proved itself to be of lasting importance.

In his last years, developments in the financial sector brought him some measure ofsatisfaction. Says ICICI Chairman, N. Vaghul: The most gratifying aspect about his life

is that values he cherished all his life, came into reality in the last years opening up the

financial sector, and deregulation of lending rates were issues he stood for all his life, and

this happened before he passed away.

Farewell dear Hasmukhbhai! All of us will miss not only H.T. Parekh the financial

wizard, but much more so, the man. The only and best tribute we can pay to such an

individual is to try and follow in his footsteps, keeping in mind his high ideals and

philanthropic outlook.

.

History

HDFC Bank was incorporated in August 1994 in the name of 'HDFC Bank

Limited', with its registered office in Mumbai, India. The Bank commenced

operations as a Scheduled Commercial Bank in January 1995.

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1994

- The Bank was Incorporated on 30th August. 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

was received 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 (Natwest Group) for subscribing 20% of the

banks issued capital and providing technical assistance in relation to the banks proposedbanking business.

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, 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 (all were

taken up).

- 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.

1996

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- 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 possiblein 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.

1997

- The bank is one of the largest mobilisers of retail deposits through its network of 20branches. Its credit deposits ratio was 53.8%.

- The bank has set up a ultra-modern hub at Powai in Mumbai where the bank's central

computer is housed. This hub housed in 35,000 square feet of space, houses data of all

the branches and facilitates the introduction of new products and services.

- HDFC has installed state-of-the-art systems to facilitate inter-connectivity between

branches and link up with on line system.

- The bank has also recently signed up as a depository participant, under the newly set up

NSDL, wherein the members clearing accounts settlement for dematerialised shares can

be done through the bank.

- HDFC Bank, one of the nine new-generation private sector banks, has planned to set up

an all-India on-line automated teller machine (ATM) network.

- HDFC Bank proposed to launch tele-banking for the first time in June in Mumbai at its

Chandiveli branch.

- HDFC Bank has drawn up plans to become a niche player in corporate banking by

sticking to top-rung corporates.

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- HDFC Bank has become the first private sector bank to conclude a structured interest

rate option deal.

- HDFC Bank has launched its Versova branch, the 11th branch in Mumbai.

- HDFC Bank, as part of its expansion plans in the South, has opened another branch in

Chennai.

- HDFC Bank has entered into strategic alliances with 10 overseas banks to provide

customers with a wide range of derivatives including interest rate and foreign currency

swaps.

- HDFC Bank on October 14 introduced ATMs that converse in a regional language.

- HDFC Bank has introduced the Freedom Account for the average retail customer

located in the major metros as a means to wean away the middle-income market from

nationalised banks.

- HDFC Bank has launched an account in all its 28 branches across India that seeks to

free depositors from minimum balance requirement, for the first time in the country.

- HDFC has introduced a new loan product for the payment of betterment fees announced

by the Bangalore Mahanagar Palike. - HDFC Bank is all set to launch its debit card by

April 1998.

1998

- HDFC Bank has tied up with the Ahmedabad Stock Exchange (ASE) to act as its

clearing bank.

- HDFC Bank proposes to strengthen its branch network in Calcutta with the addition of

two new branches in the first quarter of the next fiscal.

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- HDFC Bank has signed an agreement with the National Stock Exchange (NSE) which

will give it a second charge over the brokers deposit for providing loan against share

facility to NSE brokers.

- The bank has also entered into a similar understanding with the Bombay StockExchange (BSE) whereby the bourse will provide support for recovery of money against

the card for loan against share facility.

- The bank has also entered into `Cirrus' arrangements by which all master card holders

across the globe will be able to transact at HDFC Bank in India.

- The bank will also provide phone-banking facility in Bangalore. HDFC has tied up with

Visa International to offer its Debit Card. - HDFC Bank Ltd has entered into amemorandum of understanding for a strategic business collaboration with Chase

Manhattan Bank.

- HDFC Bank has become the first bank in India to link up its automated teller machine

(ATM) network with all the three major payment systems world-wide.

- HDFC Bank will be the first bank in the Asia-Pacific region to connect the American

Express (Amex) payment system.

- The HDFC Bank is expanding its ATM network to connect to American Express

Interchange based in Phoenix, Arizona, USA. With this connectivity, HDFC Bank has

become the first bank in the Asia-pacific region to connect to the Amex Interchange.

- HDFC Bank was the first to sign up with AMEX in December of 1998.

- The Bank has tied up with ITC Threadneedle Mutual Fund to provide its investors withthe High Interest Fund (HIF), a facility to encash their units through the bank's

Automated Teller Machines in addition to a cheque book facility also to be provided by

the bank.

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- Sony India Ltd (SIL) has joined hands with HDFC Bank to work out an innovative car

finance package under which a sony car audio system would be installed to a new car for

no additional upfront cash outflow.

- The bank has decided to issue 1,33,10,000 equity shares of Rs. 10 each to HDFC and awholly-owned subsidiary of it at a price of Rs. 94 per share.

- The bank will also issue 13,70,000 equity shares to India Private Equity Fund and

51,20,000 shares to Indocean Financial Holding, the two equity funds controlled by

Chase Manhattan Bank.

- HDFC Bank, has tied up with BPL Ltd to offer Internet-enabled supply-chain

management and business-to-consumer (B2C) e-commerce services to corporates.

- Hutchison Max Telecom and HDFC Bank introduced the country's first-ever mobile-

banking services in the city.

2000

- HDFC Bank also signed a memorandum of understanding with Singapore Telecom's e-

commerce arm Sesami.Com Pvt Ltd. - The Bank latter also entered into a partnershipagreement with National Computer Systems, the e-commerce unit of Singtel.

- A new company called SESAMi.com (India) has been formed by a strategic alliance

between HDFC Bank and Singapore Telecom's e-commerce company SESAMi.com, to

offer e-commerce solutions for the Indian market.

- HDFC Bank has a tie-up with Maxtouch for giving the facility to the latter's customers

in Mumbai. This is the first and only service of this sort in the country, he said.

- HDFC Bank is also launching an online electronic banking solution called Enet which

will allow corporates to access their accounts over the net and carry out trade related

transactions and cash management functions.

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- HDFC Bank entered into a tie-up with Telco by which the bank would provide

preferential financing options for Tata's range of passenger cars including the Indica,

Sumo, Safari, Estate and Sierra.

- HDFC Bank allotted 1.98 crore shares of Rs 10 each at an issue price of Rs 94 per shareto promoters and strategic investors on March 29.

- HDFC Bank is also set to become the first bank in the country to offer wireless

application protocol (WAP) services to customers.

- SkyCell Communications Ltd, one of the two cellular service providers in Chennai, has

launched `Sky Banking', for which the company has tied up with ICICI Bank and HDFC

Bank.

- The bank has tied up with 12 utility companies nationwide including BSES, MSEB,

BEST, Orange, BPL and MTNL.

- The Bank has tied up with financial portals, e-brokerages and the National Stock

Exchange to enable broker payments for e-broking ventures. - The Bank has set up 100

new electronic data capture (EDC) terminals in Mumbai. - HDFC Bank has launched its

first B2C payment gateway which allows Visa and MasterCard credit card-holders to dotransaction online and realtime. - CYBERITMALL.COM has joined hands with HDFC

Bank to provide VISA/MasterCard users with an online payment gateway solution to

enable them to have a secure eshopping experience. - HDFC Bank plans to extend its

mobilephone banking services introduced in select metros to mobilephone broking when

it introduces its Internet on-line trading in July. - HDFC Bank and portal

clickforsteel.com have signed a memorandum of understanding for offering online credit

and services to facilitate `post transaction' activities through the portal's `allied services

providers' programme. - Indianfoline.com signed an agreement with HDFC bank for the

use of payment gateway to enable online financial transactions.

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- HDFC Bank, in association with cellular service provider Orange, has launched the

entire range of mobile banking services and mobile commerce services using wireless

application protocol (WAP) technology.

- The Company has introduced a new scheme whereby it will provide loans to individualsfor payment of self assessment tax on their properties in Bangalore.

- The Foreign Investment Promotion Board has cleared the proposal of the HDFC Group

to enter into a joint venture with Singapore Telecom's e-commerce company for

providing a comprehensive range of business-to-business e-commerce solutions to

companies in India.

- The Company proposes to pick up an equity stake in Softcell Trade and TechnologiesLtd., a Mumbai-based software company.

- BPL Mobile has tied up with HDFC Bank to offer Internet banking through the mobile

phone.

- HDFC Bank launched `eInstant Car Loans' a new scheme for offering customers a

range of net-enabled loan products.

- HDFC Bank launched depository services on the net.

- HDFC Bank tied up with NSE.IT, a wholly owned subsidiary of the National Stock

Exchange, for providing payment gateway services for the latter's Internet trading

operations.

- HDFC Bank has been identified as the best domestic commercial bank for the second

consecutive year by FinanceAsia.com, which provides a network for financial decisionmakers.

- The Mumbai-based Geojit Securities Ltd. has tied up with HDFC Bank for Internet

trading of shares.

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- Calcutta's cellular services provider Modi Telstra, and HDFC Bank have entered into a

collaboration to provide mobile commerce in Calcutta.

- HDFC Bank has got the Kerala-based Nedungadi Bank as its first customer for its new

joint venture company with I-Flex Solutions.

- HDFC Bank has set a target of attaining a business of over Rs 15,000 crore this fiscal

mainly through expansion and new product launches, including a credit card.

- HDFC Bank, in association with Tata Cellular, has launched Mobile Commerce

Service, for customers in Hyderabad and Vishakaptnam.

- HDFC Bank has tied up with about 25 equity brokerages for enabling third partytransfer of funds and securities through its business-to-business portal -- `e-Net'.

- The Bank has entered into an alliance with Deloitte Haskins and Sells, a member firm

of Deloitte and Touch, to offer banking services to its non-resident Indian customers.

- HDFC Bank has launched its 123rd outlet at Delhi Stock Exchange building at Asaf Ali

Road.

- The Bank proposes to acquire up to 24.5 per cent stake in the MIEL e-Security Pvt.

Ltd., which is engaged in the business of developing and marketing of security products

and services for a range of e-commerce and enterprises security applications.

- The Bank has tied up with Rajan Raheja-owned Hathway for providing banking at

home as part of the Net-over-cable initiative of the latter in Mumbai. - HDFC Bank

launched its on-line bill payment facility in alliance with the Maharashtra State

Electricity Board has also begun to offer bridge loans against fixed deposits of parentHousing Development Finance Corporation the financial institution.

- HDFC Bank has tied up with portal brainvisa.com to retail education loans to students. -

The Gujarat Cellular operator Fascel, has signed up with the HDFC Bank to introduce

mobile commerce for the first time in the State.

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- HDFC Bank has tied up with BPL Mobile for mobile commerce facility.

- CricketNext.com, a sports e-commerce site has tied up with HDFC Bank to provide an

on-line payment gateways and marketing opportunities for a wide range of cricket sports

gear on its on-line shop BatNext.

- Singapore-based Growasia.com has entered into an understanding with HDFC Bank and

credit rating agency Icra, for picking up equity in the company's Indian subsidiary

Gasia.com.

- The Bank has launched `Freedom - The e-Age Savings Account' for cellular phone

users.

- Spice Cell has tied up with Citibank N A, HDFC Bank and ICICI Bank for mobile bill

settlements.

- HDFC Bank and Cosmos Bank launched a co-branded ATM card.

- The Chatterjee Group-promoted Captech Online Ltd. has signed memorandum of

understanding with HDFC Bank and UTI Bank for setting up a payment gateway for its

debt negotiation platform, Riskxpress.com.

- HDFC Securities Ltd., promoted by the HDFC group with equity participation from the

Housing Development Finance Corporation Ltd., HDFC Bank and Chase Capital

Partners, has launched its brokerage services for retail investors in the Capital.

- The HDFC Bank and Airtel launched their mobile-banking service through WAP in

Delhi.

- HDFC Bank has launched wireless application protocol-based mobile-banking in

Coimbatore and Trichy in association with Aircel.

2001

- The Bank has opened its first branch in Aurangabad.

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- 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 in association 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 services to online investors.

- Standard Chartered Bank, HDFC Bank and Bharat Petroleum Corporation have joinedthe 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 services to small and medium enterprises.

- The Bank has opened four ATMs outlets in Bangalore at Coles Road, RT Nagar, Rajaji

Nagar and Jaya Nagar on March 26.

- HDFC Standard Life Insurance has launched a `Development Insurance Plan' a low cost

life insurance product developed specifically to meet the needs of economically weaker

sections.

- Two Directors, Mr. S.S. Thakur and Mr. Amit Judge, have resigned from the board of

the bank effective from March 30.

- HDFC Bank files with US regulators to list more than 11 million American Depositary

Shares on the New York Stock Exchange.

2002

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- HDFC Bank unveiled a new online account aggregation service `OneView'.

- HDFC launched 'One View' service to customers

- HDFC Bank launched its 9th branch in Karnataka.

- HDFC opens its branch in Mangalore.

- HDFC Bank unveils Silver card in Hyderabad.

- HDFC Bank opens first overseas representative office.

- HDFC Bank unveils gold card

- Mediclaim facilities to HDFC Bank gold cardholders.

- HDFC Bank Ltd has informed BSE that Mr Deepak Satwalekar has submitted his

resignation as Director of the Bank. The Board of Directors has accepted the same. The

Board of Directors has co-opted Mrs Renu Karnad as Additional Director of the Bank.

- Mrs. Renu Karnad has been co-opted as an Additional Director of the Bank. Mrs

Karnad shall represent the promoters of the bank i.e. HDFC Ltd. Also Mr. DeepakSatwalekar, Managing Director of HDFC Standard Life Insurance Company Ltd, has

been on the Board of the Bank as nominee of HDFC Ltd since September 12, 1994 and

shall complete the period of 8 yrs before the next scheduled board meeting. In view of the

provisions of the Banking Regulation Act, 1949, Mr. Satwalekar has submitted his

resignation as Director of the Bank and the Board has accepted the same.

- HDFC Bank launched new products to its wealth management programme to increase

its customer base. The bank introduced a non-interactive product named "FinancialPlanner", which would be available for all its customers for an annual fee starting from

Rs 10,000. The bank is offering fee based advisory programme to the "mass affluent"

segment, which was earlier offered to high net worth customers. The wealth management

programme would cater to individual needs taking into account various factors such as

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customer's age, financial goals and risk profile, which includes equity, MFs and debt

instruments such as RBI Relief Bonds.

- Orange JV with HDFC Bank.

2003

- HDFC Bank unveils resident foreign currency account.

- HDFC Bank unveils co-branded credit card with e-Seva.

- The Board of Directors of HDFC Bank Ltd at their meeting held on January 15, 2003

approved the appointment of Mr. Arvind Pande as an Additional Director pursuant to

section 260 of the Companies Act, 1956.

- EPFO JV with HDFC Bank for its pension distribution.

- HDFC enters into agreement with HDFC Bank to source housing loans.

- HDFC Bank, IRCTC in tie up for online railway booking.

- HDFC Bank inks pact with ANB for remittance service

- HDFC Bank introduces 'HDFC Bank Health Plus Credit Card'.

- Uma Krishnan resigns HDFC Bank as country head.

- Escotel ties up with HDFC Bank for Global Debit Card.

- HDFC Bank launches India's first mobile payment solution.

- HDFC Bank's debt programme of Rs 400-crore has received triple A (ind) rating from

CREDIT rating agency FITCH.

-Mumbai - HDFC Bank in collaboration with Tally Solutions is planning to launch

electronic data interchange (EDI) system for small and medium enterprises (SMEs).

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-Warburg Pincus sells 2% stake in HDFC for Rs 235 cr

- HDFC Bank began selling home loans of its promoter Housing Development Finance

Corporation (HDFC).

-Board approved to allot 4,16,400 equity shares to the employees of the Bank under the

Employee Stock Option Scheme

2004

-Mr Ranjan Kapur & Mr Bobby Parikh appointed as Additional Directors

-NMCE inks pact with HDFC Bank for warehouse receipts

- HDFC Bank has entered into an alliance with Clearing Corporation of India Ltd

(CCIL). The tie-up offers the latter's collateral borrowing and lending obligation (CBLO)

product to cooperative banks that are not direct members of the negotiated dealing system

(NDS).

-HDFC Bank repurchases HDFC loans worth Rs 208 cr

-Launches Quickremit, a unique online service that enables NRIs in the US to sendmoney to their relatives in India from the comfort of their homes.

-Andhra Bank has entered into an alliance with HDFC Bank for sharing its network of

automated teller machines (ATMs). On March 29, 2004

- HDFC Bank and Bahraini Saudi Bank (BSB) have announced an alliance to cater to

service the needs of the non-resident Indians (NRIs) in Bahrain.

- HDFC bank Ltd has informed that Dr (Mrs) Amla Samanta has ceased to be a director

of the Bank wef April 25, 2004.

- HDFC Bank launches new scheme for Maruti 800 buyers, providing 85 per cent finance

on the on-road price of the car for seven years.

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-HDFC Bank wins Asiamoney award for Best Domestic Bank

-HDFC Bank managing director Aditya Puri has been awarded the management man of

the year by the Bombay Management Association (BMA)

-HDFC Bank has entered into an agreement with Shrachi Securities Ltd, the flagship

company of the Kolkata-based Rs 300-crore Shrachi Group, for financing of multi-utility

vehicles all over India

-HDFC Bank has launched an online bill payment facility for its customers who are also

subscribers to Tata Teleservices

-HDFC Bank join hands with NCR Corporation to offer managed ATM services

- IKF Finance Ltd has entered in to a Joint Lending Arrangement with HDFC Bank Ltd

2005

-TMB forges alliance with HDFC Bank

-HDFC Bank inaugurates first ATM in Hotel

- HDFC Bank ties up with the International Bank of Qatar (IBQ) to launch banking

services in Qatar.

- HDFC Bank launches loyalty rewards programme for its debit and credit cardholders

under the name InstaWonderz.

-HDFC Bank along with MasterCard International launched credit card targeted at small

and medium-sized enterprises

-HDFC Bank has tied up with US-based WL Ross and company LLC for investing in

corporate restructuring

-HDFC Bank unveils credit card for farmers

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2006

-HDFC sets up two more branches in AP

2007

-HDFC Bank has signed an agreement with Tata Pipes to offer credit facilities to farmers

across the country.

-Hdfc Bank Ltd has appointed Mr. Pandit Palande as an additional Director of the Bank

at the Board Meeting

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.

Headquartered in Mumbai, HDFC Bank, has a network of over 531 branches spread over

228 cities across India. All branches are linked on an online real-time basis. Customers in

over 120 locations are serviced through Telephone Banking. The Bank also has a networkof about over 1054 networked ATMs across these cities. 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.

HDFC Bank has won many awards for its excellent service. Major among them are "Best

Bank in India" by Hong Kong-based Finance Asia magazine in 2005 and "Company of

the Year" Award for Corporate Excellence 2004-05.

27

.

Board of Directors

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The Board of Directors comprises fourteen members, of which eleven are non-executive

directors. The three executive directors

Include the Chairman, the Managing Director and the Executive Director. Of the eleven

non-executive directors, nine are independent

Directors. The independent directors have confirmed that they satisfy the criteria laid for

independent director as stipulated in

Clause 49 (I) (A) (iii) of the listing agreements.

The directors bring to the board a wide range of experience and skills. Brief profiles of

the directors are set out elsewhere in the

annual report. The composition of the board is in conformity with the listing agreements.

Details of the Board of Directors in

terms of their directorships/ memberships in committees of public companies (excludingHDFC) are as under:

Sr. No. Directors No. of No. of Committees

Directorships Member Chairperson

1 Mr. Deepak S. Parekh (Chairman)

2 Mr. Keshub Mahindra (Vice Chairman)

3 Mr. Shirish B. Patel

4 Mr. B. S. Mehta

5 Mr. D. M. Sukthankar

6 Mr. D. N. Ghosh

7 Dr. S. A. Dave

8 Mr. S. Venkitaramanan

9 Dr. Ram S. Tarneja

10 Mr. N. M. Munjee

11 Mr. D. M. Satwalekar

12 Dr. Vijay L. Kelkar

13 Ms. Renu Sud Karnad (Executive Director)

14 Mr. K. M. Mistry (Managing Director)

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MAJOR PRODUCTS AND SERVICES

HDFC Bank caters to a wide range of banking services covering commercial and

investment banking on the wholesale side and transactional / branch banking on the

retail side. The bank has three key business areas:-

(a) WHOLE SALE BANKING SERVICES

The Bank's target market is primarily large, blue-chip manufacturing companies in

the Indian corporate sector and to a lesser extent, emerging mid-sized corporate. For

these corporate, 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 customerorientation, the Bank has made significant inroads into the banking consortia of a

number of leading Indian corporate 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

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Within this business, the bank has three main product areas - Foreign Exchange and Derivatives,

Local Currency Money Market & Debt Securities, and Equities. With the liberalization 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 providedthrough 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.

Accounts and Deposits

Banking should be effortless. With HDFC Bank, the efforts are rewarding. No matterwhat a customer's need and occupational status, we have a range of solutions that are

second to none.

Whether you're employed in a company and need a simple Savings account or run your

own business and require a robust banking partner, HDFC Bank not only has the perfect

solution for you, but also can recommend products that can augment your planning for

the future

Savings Accounts

These accounts are primarily meant to inculcate a sense of saving for the future,

accumulating funds over a period of time. Whatever your occupation, we are confident

that you will find the perfect banking solution. Open an account in your name or register

for one jointly with a family member today.

Regular

Salary

Savings Plus

Classic

Payroll

No Frills

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Regular

Retail Trust

Premium

Kids Advantage

Defense

Pension Savings

Current Accounts

Now, with an HDFC Bank Current Account, experience the freedom of multi-city

banking! You can have the power of multi-location access to your account from any of

our 684 branches in 316 cities. Not only that, you can do most of your bankingtransactions from the comfort of your office or home without stepping out.

We make it our business to help you with your business by offering you a Current

Account with all the benefits you need to stay ahead of your competition.

At HDFC Bank, we understand that running a business requires time and money, also

that your business needs are constantly evolving. That's where we come in. We provide

you with a choice of Current Account options to exclusively suit your business -

whatever the size or scope.

Open an HDFC Bank Current Account & control your business operations centrally.

Plus

Trade

Premium Regular

RFC DomesticChoose the product most suitable for you:

Fixed Deposits

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Long-term investments form the chunk of everybody's future plans. An alternative to

simply applying for loans, fixed deposits allow you to borrow from your own funds for a

limited period, thus fulfilling your needs as well as keeping your savings secure.

Regular Fixed Deposit

Super Saver

Sweep-In

5 Year Tax Saving Fixed Deposit

DEPOSIT PRODUCT

HDFC has instituted well-defined service standards for both depositors and deposit agents. HDFC has

been able to mobilise deposits from over 10 lac depositors. Outstanding deposits grew from Rs. 1,458

crores in March 1994 to Rs 8,741 crores in March 2006. Much of this success can be attributed to its

strong brand image, superior services, security and above all, the significant contribution made by

HDFC's deposit agents. HDFC has over 50,000 deposit agents and distributes all its retail savings

(deposit) products primarily through this channel.

HDFC has been awarded AAA rating for its deposits from both CRISIL and ICRA for the

TWELFTH consecutive year , representing highest safety as regards timely payment of principal and

interest.

Benefits of an HDFC Individual Deposit:

1.Highest Safety

2.Tax Benefits

3.Attractive Returns

4.Quick Loan Facility

5.Nomination Facility

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Individual depositors, singly or jointly, can nominate under this facility. In case the deposit is placed in

the name of a minor the nomination can be made only by a person lawfully entitled to act on behalf of

the minor. Power of attorney holder or any person acting in representative capacity as holder of an

office or otherwise cannot nominate. The nominee shall have the right to receive the amount due inrespect of deposit on death of all the depositors and payment by HDFC to the nominee shall constitute

full discharge to HDFC of its liability in respect of the deposit.

Demand Draft Facility:

Outstation depositors can send demand drafts after deducting demand draft charges. This facility is not

available to investors under Easy way Savings. This facility is applicable for places where HDFC does

not have an office.

High Service Standards:

Depositors are offered across the counter services for new deposits, renewals, repayments and loan

against deposit facility. Further, all enquiries through email, post, telephone and in person are attended

to immediately.

Electronic Clearing Service:

This facility is provided to depsoitor's in select centres whereby the interest will be credited directly to

the depositors' bank account. The depositor would receive a credit entry "ECS HDFC" in his

passbook/bank statement. Intimation of interest credited would be sent on an annual basis. Your bank

will not levy any charge for this facility as per present RBI guidelines.

Presently this facility is being offered by us at the following centers -

ECS Centres : Ahmedabad, Bangalore, Bhubaneshwar, Kolkata, Chandigarh, Chennai, Hyderabad,

Jaipur, Kanpur, Mumbai, Nagpur, Nasik, New Delhi, Pune and Vadodara. Short-Term Bridging loan

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makes you realise your dream of buying a bigger and better home and gives you time to sell your

existing property to pay off the loan.

This is a short term loan to help customers with the interim period between the sale of your old home

and the purchase of a new home. You can take the loan even if you are an existing customer of HDFC

Features

Maximumloan

90% of cost of new property

MaximumTerm

2 years

Applicant and Co- Applicant to thloan

Home Loans can be applied for either individually or jointly. Proposed owners of the property,

will have to be co-applicants. However, the co-applicants need not be co-owners.

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CHAPTER-2

1) PRODUCT

2) MARKET AND COMPETITORS

3) MARKET SURVEY

4) OPERATIONAL HIGHLIGHTS

MARKETS& COMPETITORS

The advance estimates of GDP growth for the year 2006-07 is 8.1 % over the previous year. This places India firmly

amongst the fastest growing economies in the world during the current year. The buoyancy has been

spread across most sectors of the economy. The inflationary situation has been benign in 2006- 07.

On the commercial credit front, there have been some signs of pick-up in credit off-take in recent

months. The growth has been in non-food credit whilst food credit witnessed a fall of around 30%. The

growth in non-food credit is principally because of surge in retail lending, particularly in housing.

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However, credit to industry declined despite the industrial recovery probably due to large internal

accruals and increasing Dis-intermediation. The growth in non-food credit has not led to a rise in

interest rates due to matching growth in bank deposits that has kept liquidity easy. Bank deposits have

grown over 15% this fiscal.The financial markets continue to remain generally stable. The average call money rate moved

down by a little over 20 basis points. The yield on treasury bills of different maturities has declined,

while the yield on Government securities with 10-year residual maturity has marginally firmed up. In

fact, a slight steeping of the yield curve is noticeable with shifts in yield at the very long-end. By and

large, the behavior of the fixed income market has been in consonance with the monetary policy stance.

The uncertainties relating to the currency movements of major currencies have increased. Continuing

forex inflows both on the current and capital account has seen upward pressure on the rupee. The RBI

has kept a constant check on the appreciating rupee and continuously intervened by way of regular

dollar purchases. Notwithstanding the appreciation of the rupee against the US dollar, exports still grew

over 8 per cent over the last fiscal. This was achieved because while the rupee appreciated against the

US dollar, it depreciated against its competitor currencies, especially with that of Asian and Latin

American countries, giving India the relative advantage in merchandise exports.

All in all the Indian economy has demonstrated considerable resilience to exogenous shocks in

the last fiscal and is poised for growth. At present, there are 27 Public sector banks, 31 Private Banks

and 29 foreign banks operating in India. Some of the key players in banking sector are as follows:

Public Sector Banks: Bank of Baroda, Bank of India, Corporation Bank, Oriental Bank of Commerce,

State Bank of Hyderabad, State Bank of India, Dena Bank.

Private Sector Banks: Global Trust Bank, HDFC Bank, ICICI Bank, IDBI Bank, IndusInd Bank, Centurion Bank.

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MARKET SURVEY OF EXISTING & NON EXISTING

CUSTOMER IN ROURKELA FOR HDFC BANK

1- TOTAL CUSTOMER WITH HDFC BANK IN A SAMPLE OF 100

0%

10%

20%

30%

40%

50%

60%

70%

80%

HAVE SAVIN A/C DONT HAVE

Series1

INTERPRETATION :

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I have surveyed around 100 people of Rourkela in Udit nagar, Panpose, Sector area and found that

around 18% of the people having saving A/C in HDFC Bank and 72% of the people do not have their

A/C have in HDFC Bank and rest of the people do not want to divulge about their deposits.

2-PROBLEM FACED BY THE EXISTING A/C HOLDER

25%

30%

40%

5%

0%

5%

10%

15%20%

25%

30%

35%

40%

45%

HEAVY

DEPOSIT

AMMOUNT

HIDDEN

CHARGES

TOO MANY

SCHEME

PHONE CALL

Series1

INTERPRETATION

The above graph reveals that 25% of the people are having problem with heavy deposit

amount. 30% people facing problem due to hidden charges of the Bank. 40% people

claim about too many schemes in HDFC Bank. 5% People complained that their phone

calls are not entertained.

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CHAPTER -3

1)SWOT ANALYSIS

2)RESEARCH METHODOLOGY

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3)TECHNOLOGY IN BANKING

4)RECENT DEVELOPMENTS

5)SHARE HOLDING PATTERN OF HDFC

6)FINDINGS

7)SUGGESTIONS VS RECOMMENDATIONS

8)CONCLUSION

9)BIBLIOGRAPHIE

SWOT ANALYSIS

Strengths:

1) Enough reserves necessary for mergers. Achieving double benefits of risk management and consolidation.

2) One of the two Indian private banks which are listed in NYSE.

3) Parent company (HDFC) being the market leader in house loan area all over the world.

4) CAR (Capital Adequacy Ratio) well ahead of the regulated level.

5) Tie ups with different business houses like RELIANCE (mobile banking), TRAVELEX (currency

exchange), and TAIB (Online stock trading).

6) Inflow of funds through ADR route.

Opportunities:

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1) Large untapped market left out for venturing into specifically rural market.

2) Emerging new areas like mutual funds, insurance, asset liability management, corporate banking and

complete financial services.

3) Increase in FDI limit to 74%. This can bring in foreign investment

Threats:

1) New competitors entering into the market in the form of foreign banks in order to tap the Indian market.

2) Compliance with RBI and government regulations and norms.

3) Introduction of Basel -2 norms will bring in new supervisory and transparency hassles which banking

industry in general have to face.

Weakness

(1) :Rise in NPA in retail segment.

(2) Volatility of interest rates and interest risk attached with it

RESEARCH METHODOLOGY

TO TEST THE SIGNIFICANCE OF VARIOUS ACCOUNTS PLANN OF HDFC

BANK IN CUSTOMER SATISFACTION (CHI SQUIRE TEST)

In a feed back of customer of a HDFC BANK in a certain area, of Rourkela satisfactions are big issue in the holding

customer.

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I did a survey on the hundred people in Rourkela who are account holding customer of the bank. And, I did survey

on two famous account of the bank these are SAVING ACCOUNTS and CURRENT ACCOUNTS .The result of

satisfaction level is given below.

Treatment Customer satisfied Not satisfied Total

CURRENT ACCOUNTS 29 21 50

SAVING ACCOUNTS 34 16 50

Total 63 37 100

Now, we will discuss the satisfaction of the customer in the selection of above accounts of the HDFC BANK.

H0 : Let us take the null hypothesis that selection of accounts is not issue in customer satisfaction view. Applying

CHI SQUARE test.

H1: and our alternative hypothesis is, accounts option does matter in customer satisfaction

S.N. OBSERVED

FREQUENCY Oi

EXPECTED

FREQENCY Ei

2

(Oi Ei)

2

(Oi- Ei)/Ei

1 29 31.5 6.25 .19

2 34 31.5 6.25 .19

3 21 18.5 6.25 .33

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Let us take the hypothesis that there is no significance difference in the mean life of customer in the sample and that

of the population. Applying t-test

_

(X -) _

t = --------- n where X- The mean of the sample

S -The mean of the population

S - Standard deviation

_

CALCULATION OF X AND S.

X_

(X- X)

2

X

55 11.7 136.89

39 - 4.3 18.49

40 -3.3 10.89

50 6.7 44.89

45 -1.7 2.89

30 -13.3 176.89

X =260 2

X = 390.94

So the mean of the sample = 43.3

And standard deviation = 9.83

Now we shall calculate the statistics t = 1.24

And degree of freedom is v = n-1 = 6-1 = 5

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And tabulated value of t distribution is 4.032 at 1% level of significance and 5 degree of freedom.

The calculated value of t is less than the table value .the hypothesis is accepted .so there is the significance

difference in the age of customer of the HDFC BANK.

INTERPRETATION- From the above result we see that wide range in the age group has account in the HDFC. So

it is essential for the bank to provide feasible solution and beneficial plan for all age of group.

TECHNOLOGY IN BANKING

1-Network

Based on the bank's hub & spoke architecture for the network, the branches are distributed under different regions

and each major location has a regional hub. The branches falling under a location connect to the hub at the main

region. These hubs then connect to the central site (data center) using a combination of 2 Mbps and 64 Kbps pipes,

depending on the total volume of the transactions that pass through.

C.N. Ram, Head-Information Technology, HDFC Bank says, "Each branch is connected to their regional hub, as to

connect every branch directly to the data center involves huge costs. This kind of architecture helps save cost."

A highlight of HDFC Bank's network is the presence of two or more hubs in one location. "To balance the load and

reduce the dependency on a single line, the bank has two hub locations within a region to share the load. The

branches are split between the two hubs, so that one hub failure does not incapacitate all the branches in that

region," explained C.N. Ram.

A step ahead

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In the coming years HDFC Bank plans to deploy connections, with built-in redundancy in the network. For

example, Madras could be connected to Bangalore and Kolkata, with all three of them being connected to

Chandivili. Therefore, if the Kolkata-Chandivili link fails, then Kolkata will use the Madras link to connect to the

Chandivili data center.

The bank is also considering alternate connectivity solutions as VSATs are relatively more expensive, and in remote

areas it is difficult to set up the required infrastructure.

The bank has tested CDMA and GSM solutionsspecially for ATMs as they consume very small bandwidths.

The bank's servers have also undergone phases of development inline with the bank's expansion plans.

2- Servers

The bank started with applications on SCO-Unix boxes from Compaq almost eight years back. The software then

used was MicroBanker from i-flex Solutions (then called CITIL). The set-up supported about 10 branches initially.

"With an expansion in the number of branches the bank felt the need to consider Unix/RISC boxes rather than an

Intel/SCO Unix platform, and selected the Sun platform. Since then the bank has been running applications on a Sun

platform," said C.N. Ram.

With the growth in transaction volumes, number of branches and the number of users the hardware platform has

also been upgraded. Till recent times the database was operating on a direct attached storage (DAS), and from 1st

April 2003 the bank switched to storage attached network (SAN).

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C.N. Ram says, "Our approach is that we need to protect our data first as the basis for a business continuity plan."

The bank has a disaster recovery (DR) site at Chennai. The data at the main center is replicated in real-time on-line

at the Chennai site. The data is stored on the servers at the DR site and the database is constantly replenished. If

some disaster was to occur, data (up to the last second) will be replicated, and be available. This gives both, the

bank and the customer a feeling of security.

Security at HDFC Bank

Pre-Internet banking

Security concerns during the pre-Internet period had more to do with the internal activities of a business. Right from

the early days technology solutionslike banking applications for mainframes, AS400 or Unixhad lot of security

built-in. Transactions that are directed from the branch to the main server are encrypted; there are individual

passwords, and numerous functions have two levels of authorization. Thus security in banking, to a large extent, is

built into the software or the application itself.

Internet banking

The moment a business opens up through a medium like Internet, external security becomes of prime importance.

One has to start considering protection tools like firewalls, IDS, and others. According to C.N. Ram, it is not enough

to take care of security from the hardware or software perspective, one needs to have security policies in place,

which will tell you how to review the logs.

Ram informs that HDFC Bank has a mechanism in place where a third-party is hired to manage their entire security.

This third-party is constantly onsite looking at logs, making the required changes, as there are patches and upgrades

being constantly released, and it is imperative to incorporate all of these.

"You are protecting the infrastructure, but you also have to keep a vigil on the logs to see who is trying to attack you

or hack into your system," says Ram. The bank also has safety measures in terms of who has access, or who is

authorized to access certain

kinds of data. "Much of the security deals with the classification of the information you have. Thus people who are

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functionally responsible for a particular area are also responsible for the data they have. For example, a corporate

banking customer will not have access to retail banking data, and vice-versa. These are generally built-in the

banking packages systems," said C.N. Ram. Security is directly related to the business. The banking systems over

the years have been built with lots of security concern based on the kind of business they do.

He further added that security is not limited to hardware and soft-warepremise security also plays an equally

important role. Physical access is combined with data access. One has to have swipe cards to access the area where

the data is. Thus there is lot of emphasis on access control mechanisms, which is in fact physical security Banking

through multi-channels Today banking is not limited to a branch. People have lesser time to spend on their banking

activities and would like to avail the banking services through other channels. In a competitive market where the

services offered command market share, banks are constantly vying for customers. Banking has become a process

of choice and convenience.

By offering different channels even the banks have been successful in diverting their operations from a branch to

other channels. The result of which has been a cut in the cost per transaction at the branch. An average transaction at

the branch costs around Rs.100; at an ATM it is about Rs.40, and on the Internet it's around Rs. 20.

"But unfortunately a very small percentage of the customers out there use the Internet. This is due to factors like low

PC penetration, and penetration of Internet itself is low. A large number of our customers use ATMs. Typically 55

percent of our transactions are on the ATM, 30 percent branch, 8 percent on telephone and 7 percent Internet."

Rolling out new branchesS.R. Balasubramanian, VP-IT, HDFC Bank explained the branch set-up procedure. The bank follows a standard

procedure and the entire process is well streamlined. From the selection of the location, physical set-up of the

branch, the infrastructure requirements, hardware, software, connectivity, is all documented to have standardized

branches across the country.

He further explained that they have some regular vendors for purchases. The bank follows the reverse auction

system, wherein all preferred vendors are called and a base price is quoted according to which the vendors quote

their prices.

"We have to reach to all areas of the country and wherever there is an opportunity we have to identify it, connect

and reach our customers. Earlier it took us around 14-15 days to open a new branch after the physical set-up was

ready, but now it takes just five days to set up a branch. The entire process is so well documented and streamlined

that it is easy to roll out a branch," said S.R. Bala

Some countries have a credit bureau that collects information from all banks in the country. It is mandatory for all

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financial institutions to give data to this bureau. If this data is not exchanged, every bank is vulnerable to fraud. For

example, someone could defraud a particular bank, then go to another bank for a new account, and defraud them

too.

Thus this bureau plays an important role and all the banks contribute data to it, which enables them to screen their

new and existing customers and keep a tab on defaulters.

A similar kind of credit bureau is being setup in India and it will be called CIBIL (Credit Information Bureau of

India limited). It is a joint venture between Housing Development Finance Corporation Ltd. (HDFC), State Bank of

India (SBI), Dun & Bradstreet Information Services India Pvt. Ltd. (DB) and Trans Union International Inc. (TU).

This system will keep a check on defaultersin case there is a defaulter with one bank, the chances of that person

getting into another bank are reduced.

Over a period of time all banks are expected to become members and share data with CIBIL.

7-Future of banking and technology

According to C.N. Ram, the future is integration as people will have less time for banking. People will want to

process more transactions on the Internet. There will be more activity in terms of applications and services on the

mobile. Geography will not be an inhibitor any more as everything is executable on the Net.

"Integration is the next real big thing. As a customer you will want a one-stop shop that will take care of all your

needs. For instance people will want to buy their mutual funds, redeem their mutual fund, buy insurance policies,

renew policies, buy cinema tickets, railway tickets, and numerous similar transactions through the bank. The ATM

will still serve as a cash dispensing medium, but the Internet and mobile will be very active," says C.N. Ram.

Cost of infrastructure is coming down considerably. Service providers are providing alternative routes to customers

and prices are coming down, as there is healthy competition in the market. Bulk purchases will result in affordable

prices.

SECURITY TRENDS

With the advent of convergence on mobiles and PDA's, there is going to be lot more security built-in on the

equipment and the applications running on them. "The kind of transactions that are allowed or executed on the

mobile phones are restricted only because we feel that customers are not confident about the security levels. That is

why we can not open up a lot more transactions even if we want to. People like to use a particular technology for

some time to get accustomed and be comfortable using it. Then they decide if they would continue to use it."

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There are many security features that can be incorporated in the mobile phones as technology improves. C.N. Ram

feels that if people start developing applications using standards then it will be easier to put security (encryption) on

the mobile itself. This will enable the communication between the mobile and the bank server to be secure.

Currently sms (short messaging system) on the mobile is in the clear. The messages go from the mobile to the

SMSC and from the SMSC they are sent to HDFC Bank. From the SMSC to the bank the message can be encrypted

but between the SMSC and the mobile it is in the clear. This leaves an opening for people to snoop. Thus a

password mechanism on the mobileif it is transmitted in the cleardefeats the entire purpose of a password as it

is vulnerable and can be hacked. "Once security on these channels is taken care of we can offer more and more

applications to our customers," says C.N. Ram

Recent developments of HDFC Bank

HDFC Bank has opened 19 branches in a day in Delhi and the National Capital Region

(NCR), outdoing its own record of 14 branches in a day in October 2005. With the launch

of 19 branches on Saturday (June 2), the total number of branches in Delhi and NCR has

gone up to 116 and to 270 in North India. As on March 31, 2007 the bank had a network

of 684 branches and 1,605 ATMs in 316 towns and cities.

HDFC Bank has launched a branch dedicated to self-help groups at Thudiyalar village

near Coimbatore in Tamil Nadu. Coimbatore district has 27,000 SHG groups and 2,200

more groups are coming up. As of now, 18,000 groups are linked with credit outstanding

of about Rs. 54 crore, while 11,200 are in need of organised financial support, said a

press release by the bank. The branch, with around 14 executives, will also have an in-

house training facility for the SHGs.

HDFC Bank has signed a memorandum of understanding (MoU) with Tata Pipes to offer

credit facilities to farmers across the country. The credit is for purchase of pipes (from

Tata Pipes) for irrigation. HDFC Bank will use Tata Pipes' pan-India distributor networkunder the agreement, said a joint release from the two partners. The arrangement would

help farmers overcome the problem of severe water shortage, the release added. "Our

bank's association with Tata Pipes takes our rural thrust one notch further up," said Ms

Neena Singh, Executive Vice-President and Business Head, (retail agri business), HDFC

Bank.

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HDFC Bank has launched a service called `Instant Loan' to offer spot approval for

personal loans to the existing customers. "In the first phase, the programmed is being

offered in Mumbai, Delhi, Bangalore and Chennai and will soon be extended across the

country," said a bank release. Customers will also be able to access the facility through

Net banking and phone banking.

HDFC Bank has entered into an agreement with Godrej Aadhaar, the agri services and

retail initiative of Godrej Agrovet Ltd, to offer agri-credit facility in the rural areas.

"Aadhaar customers could avail themselves of banking services and loans on a

preferential interest rate from HDFC Bank.

The farmers, associated with Godrej Aadhaar, can now avail themselves of cash credit

and term loans post-assessment of their land holdings and cropping patterns. These

farmers could also get loan facility for their farm mechanisation needs such as tractors,

combine harvesters and other agri-related implements," said a press release by the bank.

SHARE HOLDING PATTERN OF HDFC

Share holding

Share holding pattern as on : 30/06/2007 31/03/2007 31/12/2Face value 10.00 10.00 10.00

No. Of Shares % Holding No. Of Shares % Holding No. Of Promoter's holdingIndian Promoters 82443000 24.74 68861000 21.56 688610

Sub total 82443000 24.74 68861000 21.56 688610Non promoter's holdingInstitutional investorsBanks Fin. Inst. and Insurance 8503405 2.55 8076842 2.53 870082FII's 88385137 26.53 103391032 32.37 103179Sub total 115036850 34.53 121253321 37.96 123988

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Other investorsPrivate Corporate Bodies 27978900 8.40 25301000 7.92 234808NRI's/OCB's/Foreign Others 5922277 1.78 633576 0.20 571011Govt 2158217 0.65 2513452 0.79 128343

Others 59813247 17.95 60338247 18.89 603382Sub total 95872641 28.77 88786275 27.80 856735General public 39834517 11.96 40489012 12.68 366266Grand total 333187008 100.00 319389608 100.00 315149

FINDINGS

Large numbers of customers are already with HDFC.

Many people are in process to join HDFC

But many people in spite of there willingness cannot open account with HDFC because of its

high charges in opening of saving account..

Companys report and analysis indicates that the bank is booming and has bright prospects

Many people of Rourkela are dissatisfied with the services of HDFC BANK

HDFC PRODUCT compared to other bank product is easy to invest able.

Many People are interested in investing in kids advantage plan of HDFC Bank

The products of HDFC BANK are so beneficial that it does not take time to convince people

you not only can purchase shares but also mutual fund, insurance, savings certificate and also

play in commodities & derivatives.

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SUGGESTIONS or RECOMMENDATIONS

1. Rourkela people are not aware of current HDFC product too much, so there should

be all totally different office for HDFC bank to gain popularity among people.

2. Documentation should be made easy and less time taking.

3. Customers complain of its server to be slow while trading session it should be taken

care of by the authorities.

4. People complain of hidden charges, the charges take should be made crystal clear.

5. Always training should be provided to players from time to time so that they can

play easily.

6. There should be people from the authority who could be contracted while customers

face problem while playing.

CONCLUSION

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From the above study and after doing the overall market survey of HDFC BANK I concluded that

largely the affluent people of Rourkela invest in HDFC BANK. Middle class and lower middle class

are rather unwilling to invest in HDFC BANK because the big amount required. Due to the speedy

procedure of HDFC BANK many people are interested to invest in HDFC BANK and at the same timemany people complained about the services of the HDFC BANK.I found that most of the business men

of Rourkela invest in current account of HDFC BANK .Some people are more willing to invest in kids

advantage plan because of its good features and benefits like- free ATM/INTERNATIONAL debit

cards for kids between 7 to 18 years of age, free education insurance of Rs. one lakh etc .During my

survey I found that some people queried about D-MAT section which reveals the potential D-MAT

customers which can be converted into regular customers. Finally I would like HDFC BANK to

introduce some new products targeting lower income people to dilute the market share of its

competitors. Finally the bank should be very cautious about the services it provide and which is very

essential to retain regular customers and attract new customers

BIBLIOGRAPHIE

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www.Google.com

www.HDFC bank.com

Marketing management-By Philip kotler

APPENDIX

QUESTIONNAIRE

I AM 1st

Year MBA student doing summer training with HDFC BANK conducting a survey on investors

behavior and psychology. We assure you that individual responses will be kept confidential. Please circle or

tick the appropriate option.

Q1. Do you have a bank account?

a) Yes b) No

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Q2. Your investment decisions are influenced by:

a) Oneself b) Brokers c) Economic Policies d) Market Rumors

e) Friends/Relatives f) Any Other (Please Specify)

Q3. In which, sectors are you currently investing?

a) IT b) FMCG C) Automobile d) Banking e) Cement f) Others

Q4. What are the factors, which you consider before investing in a particular

company?

a) Financial Position b) Current Market Position c) Goodwill/Brand Name

d) Future Prospects e) Any Other (Please Specify)

Q5. In which banks do you have your account?

a) ICICI b) UTI c) HDFC d) SBI e)PNB

f) Any Other (Please Specify) .

Q6. AreYou Satisfy The Services Given By The Bank(HDFC BANK)?

a) yes b)no

PERSONAL DETAILS:

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Name: Mr/Mrs/Miss --------------------------------------------------------

Address: ------------------------------------------------------------------------------------

Age: ------------ years

Phone No: -----------------------------

E-mail: -----------------------------------

Occupation:

a) Govt. Employee b) Private Employee (if yes then please specify the name

of the organization) ---------------- c) Self Employed d) Student e) Housewife

Your monthly income:

a) Less than 15000 b) 15000 25000 c)25000 35000 d) 35000 and

above

Please give some references of people who you know are trading offline / interested in

investing in stocks:

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

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

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

THANKS FOR YOUR VALUEABLE TIME AND INPUTS.

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summer project of rishi to sastry sir

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