CHAPTER 1

INTRODUCTION

The Marketing sector is one of the booming and increasing sectors in India. The Sales
Executives are one of the most powerful, efficient and effective channel through which the
company sales it’s various types of financial products. It is really difficult to convince customers
and sell a single product but since these executives have their own personal contacts which make
the entire task easier to sell a product.

The ultimate purpose of this topic was to know about the customer’s perceptions about
the different products of the bank, how these products can attract them and how the company can
generate maximum profit by convincing them through sales executives.

1.1 Importance

• To know the process of recruitment for Sales Executives in HDFC Bank.

• Different products and services provided by the bank.
• Customers’ perception about the different products.
• The brand image of the bank.
• What are the problems faced by these sales executives daily basis.
• How to communicate with the customers.
• Different techniques of dealing with the customers.
• How to convince and convert a customer into a real customer.

1.2 Objective
The main objective of this study titled “Retail liability (LOANS) Marketing in HDFC Bank”
is to get exposure and acquire knowledge about various products and services of HDFC Bank.
Also the customer’s perception and different methods and technique to deal with that customer
are known.
1.3 Chapterisation scheme
• This entire report is classified into different chapters i.e., from Chapter 1 to Chapter 4.
• Chapter 1 consists of introduction, objectives, and importance of this report.
• Chapter 2 consists of the Company profile (HDFC Bank), milestone in the History,
Technology used and the organisation structure of the HDFC Bank.
• Chapter 3 consists of activities of various departments in HDFC Bank.
• Chapter 4 consists of the Conclusion part of this report and the observations made during
the training period in HDFC Bank.
 CHAPTER – 2

COMPANY PROFILE

WE UNDERSTAND YOUR WORLD

2.1 History of the Bank

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 a “World 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.

Mar ‘08 Mar ‘09 Mar ‘10

Cities 327 528 779

Branches 761 1,412 1,725

ATM’s 1,977 3,295 4,232

Fig – 2.1

As of March 31, 2008, the Bank’s 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 Bank’s 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 Bank’s provisioning policies for specific loan loss provisions remained higher
than regulatory requirements.

• Mission statement
Our mission is to be “a World Class Indian Bank”, benchmarking ourselves against
international standards and best practices in terms of product offerings, technology, service
levels, risk management and audit & compliance. The objective is to build sound customer
franchises across distinct businesses so as to be a preferred provider of banking services for
target retail and wholesale customer segments, and to achieve a healthy growth in
profitability, consistent with the Bank’s risk appetite. We are committed to do this while
ensuring the highest levels of ethical standards, professional integrity, and corporate
governance and.regulatory.compliance.

• Promoter

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.

• Business Focus

HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to

build sound customer franchises across distinct businesses so as to be the preferred
provider of banking services for target retail and wholesale customer segments, and to
achieve healthy growth in profitability, consistent with the bank's risk appetite. The bank is
committed to maintain the highest level of ethical standards, professional integrity,
corporate governance and regulatory compliance. HDFC Bank's business philosophy is
based on four core values - Operational Excellence, Customer Focus, Product Leadership
and People.

• Businesses
HDFC Bank offers a wide range of commercial and transactional banking services and
treasury products to wholesale and retail customers. The bank has three key business
segments:
 Wholesale Banking Services
The Bank's target market ranges from large, blue-chip manufacturing companies
in the Indian corporate to small & mid-sized corporate and agri-based businesses.
For these customers, 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 customer orientation, 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 recognized as a leading provider of cash management and
transactional banking solutions to corporate customers, mutual funds, stock
exchange members and banks.

 Retail Banking Services

The objective of the Retail Bank is to provide its target market customers a full
range of financial products and banking services, giving the customer a one-stop
window for all his/her banking requirements. The products are backed by world-
class service and delivered to customers through the growing branch network, as
well as through alternative delivery channels like ATMs, Phone Banking, Net
Banking and Mobile Banking.

The HDFC Bank Preferred program for high net worth individuals, the HDFC
Bank Plus and the Investment Advisory Services programs have been designed
keeping in mind needs of customers who seek distinct financial solutions,
information and advice on various investment avenues. The Bank also has a wide
array of retail loan products including Auto Loans, Loans against marketable
 securities, Personal Loans and Loans for Two-wheelers. It is also a leading
provider of Depository Participant (DP) services for retail customers, providing
customers the facility to hold their investments in electronic form
 Treasury
Within this business, the bank has three main product areas - Foreign Exchange
and Derivatives, Local Currency Money Market & Debt Securities, and Equities.
With the liberalisation of the financial markets in India, corporate need more
sophisticated risk management information, advice and product structures. These
and fine pricing on various treasury products are provided through 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.

• Capital Structure

The authorized capital of HDFC Bank is Rs550 crore (Rs5.5 billion). The paid-up
capital is Rs424.6 crore (Rs.4.2 billion). The HDFC Group holds 19.4% of the bank's
equity and about 17.6% of the equity is held by the ADS Depository (in respect of the
bank's American Depository Shares (ADS) Issue). Roughly 28% of the equity is held by
Foreign Institutional Investors (FIIs) and the bank has about 570,000 shareholders. The
shares are listed on the Stock Exchange, Mumbai and the National Stock Exchange. The
bank's American Depository Shares are listed on the New York Stock Exchange (NYSE)
under the symbol 'HDB'.

• Times Bank Amalgamation

In a milestone transaction in the Indian banking industry, Times Bank Limited

(another new private sector bank promoted by Bennett, Coleman & Co. /Times Group) was
merged with HDFC Bank Ltd., effective February 26, 2000. As per the scheme of
amalgamation approved by the shareholders of both banks and the Reserve Bank of India,
shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of
Times Bank. The acquisition added significant value to HDFC Bank in terms of increased
branch network, expanded geographic reach, enhanced customer base, skilled manpower
and the opportunity to cross-sell and leverage alternative delivery channels.

• Merger of Centurion Bank of Punjab

The Legal processes for the merger were completed effective May 2008. The Key drivers
of this merger are larger distribution network, potential to improve productivity, cross-sell.
The System, people and process integration completed in less than a year. The Current
Status of this merger are the Significant improvements evident in Branch productivity also
in the Net interest margin, the cost to income ratio and NPA ratios are combined and Bank
now perform better than pre merger levels for HDFC Bank. HDFC Bank and Centurion
Bank of Punjab merger at share swap ratio of 1:29

The Boards of HDFC Bank and Centurion Bank of Punjab met on 25 February, 2008 and
approved, subject to due diligence, the share swap ratio for the proposed merger of
Centurion Bank of Punjab with HDFC Bank. The Scheme of Amalgamation envisages a
share exchange ratio of one share of HDFC Bank for twenty nine shares of Centurion Bank
of Punjab.

The combined entity would have a nationwide network of 1,148 branches (the largest
amongst private sector Banks) a strong deposit base of around Rs. 1,200 billion and net
advances of around Rs. 850billion. The balance sheet size of the combined entity would be
over Rs. 1,500 billion.

Commenting on the proposed merger, Mr. Deepak Parekh, Chairman, HDFC said, “We
were amongst the first to get a banking license, the first to do a merger in the private sector
with Times Bank in 1999, and now if this deal happens, it would be the largest merger in
the private sector banking space in India. HDFC Bank was looking for an appropriate
merger opportunity that would add scale, geography and experienced staff to its franchise.
This opportunity arose and we thought it is an attractive route to supplement HDFC Bank’s
organic growth. We believe that Centurion Bank of Punjab would be the right fit in terms
of culture, strategic intent and approach to business.”

Mr. Aditya Puri, Managing Director, HDFC Bank said, “These are exciting times for
the Indian banking industry. The proposed merger will position the combined entity to
significantly exploit opportunities in a market globally recognized as one of the fastest
growing. I’m particularly bullish about the potential of business synergies and cultural fit
between the two organizations. The combined entity will be an even greater force in the
market.”
Mr. Rana Talwar, Chairman, Centurion Bank of Punjab stated, “Over the last few
years, Centurion Bank of Punjab has set benchmarks for growth. The bank today has a
large nationwide network, an extremely valuable franchise, 7,500 talented employees, and
strong leadership positions in the market place. I believe that the merger with HDFC Bank
will create a world class bank in quality and scale and will set the stage to compete with
banks both locally as well on a global level.”

Mr. Shailendra Bhandari, Managing Director and CEO, Centurion Bank of Punjab
said, “We are extremely pleased to receive the go ahead from our board to pursue this
opportunity. A merger between the banks provides significant synergies to the combined
entity. The proposed merger would further improve the franchise and customer proposition
offered by the individual banks.”

• Distribution Network

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable

network of over 1229 branches spread over 444 cities across India. All branches are linked
on an online real-time basis. Customers in over 120 locations are also serviced through
Telephone Banking. The Bank's expansion plans take into account the need to have a
presence in all major industrial and commercial centers where its corporate customers are
located as well as the need to build a strong retail customer base for both deposits and loan
products. Being a clearing/settlement bank to various leading stock exchanges, the Bank
has branches in the centers where the NSE/BSE has a strong and active member base.
 The Bank also has a network of about over 2526 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.

• Rating

I. Credit Rating

The Bank has its deposit programs rated by two rating agencies - Credit Analysis
& Research Limited (CARE) and Fitch Ratings India Private Limited. The Bank's Fixed
Deposit programme has been rated 'CARE AAA (FD)' [Triple A] by CARE, which
represents instruments considered to be "of the best quality, carrying negligible investment
risk". CARE has also rated the bank's Certificate of Deposit (CD) programme "PR 1+"
which represents "superior capacity for repayment of short term promissory obligations".
Fitch Ratings India Pvt. Ltd. (100% subsidiary of Fitch Inc.) has assigned the "tAAA
( ind )" rating to the Bank's deposit programme, with the outlook on the rating as "stable".
This rating indicates "highest credit quality" where "protection factors are very high".

The Bank also has its long term unsecured, subordinated (Tier II) Bonds rated by CARE
and Fitch Ratings India Private Limited and its Tier I perpetual Bonds and Upper Tier II
Bonds rated by CARE and CRISIL Ltd. CARE has assigned the rating of "CARE AAA"
for the subordinated Tier II Bonds while Fitch Ratings India Pvt. Ltd. has assigned the
rating "AAA (ind)" with the outlook on the rating as "stable". CARE has also assigned
"CARE AAA [Triple A]" for the Banks Perpetual bond and Upper Tier II bond issues.
CRISIL has assigned the rating "AAA / Stable" for the Bank's Perpetual Debt programme
and Upper Tier II Bond issue. In each of the cases referred to above, the ratings awarded
were the highest assigned by the rating agency for those instruments.

II. Corporate Governance Rating

The bank was one of the first four companies, which subjected itself to a
Corporate Governance and Value Creation (GVC) rating by the rating agency, The Credit
Rating Information Services of India Limited (CRISIL). The rating provides an
independent assessment of an entity's current performance and an expectation on its
"balanced value creation and corporate governance practices" in future. The bank has been
assigned a 'CRISIL GVC Level 1' rating which indicates that the bank's capability with
respect to wealth creation for all its stakeholders while adopting sound corporate
governance practices is the highest.

2.2 Milestones in the History:

HDFC Bank began its operations in 1995 with a simple mission: to be a "World-class
Indian Bank". They realized that only a single-minded focus on product quality and service
excellence would help us get there. Today, they are proud to say that they are well on our
way towards that goal.

It is extremely gratifying that their efforts towards providing customer convenience have
been appreciated both nationally and internationally.

• 2007

Business Today-Monitor Group One of India's "Most Innovative

survey Companies".

Financial Express-Ernst & Young Best Bank Award in the Private

Award Sector category.

Global HR Excellence Awards - Asia ‘Employer Brand of the Year 2007-

Pacific HRM Congress: 2008’-Award- First Runner-up.

Business Today ‘Best Bank Award’.

Dun & Bradstreet – American ‘Corporate Best Bank’-Award.

Express Corporate Best Bank Award
2007

The Bombay Stock Exchange and ‘Best Corporate Social

Nasscom Foundation's Business for Responsibility Practice’ Award.
Social Responsibility Awards 2007

Outlook Money & NDTV Profit Best Bank Award in the Private
sector category.

The Asian Banker Excellence in Best Retail Bank in India.

Retail Financial Services Awards

Asian Banker Managing Director Aditya Puri

 won the Leadership achievement
Award for India.

• 2006

Business Today Best Bank in India.

Forbes Magazine One of Asia Pacific's Best 50

companies.

Business world Best listed Bank of India.

The Asset Magazine's Triple A Best Domestic Bank.

Country Awards

Asia money Awards Best Local Cash Management Bank

in Large and Medium segments.

Euro money Awards "Best Bank" in India.

2.3 Technology used in HDFC Bank:

In the era of globalization each and every sector faced the stiff competition from
their rivals. And world also converted into the flat from the globe. After the policy of
liberalization and RBI initiatives to take the step for the private sector banks, more and
more changes are taking the part into it. And there are create competition between the
private sector banks and public sector bank. Private sector banks are today used the latest
technology for the different transaction of day to day banking life. As we know that
Information Technology plays the vital role in the each and every industry and gives the
optimum return from the limited resources.
 Banks are service industries and today IT gives the innovative Technology application
to Banking industries. HDFC BANK is the leader in the industries and today IT and
HDFC BANK together combined they reached the sky. New technology changed the mind
of the customers and changed the queue concept from the history banking transaction.
Today there are different channels are available for the banking transactions.

We can see that the how technology gives the best results in the below diagram. There
are drastically changes seen in the use of Internet banking, in a year 2001 (2%) and in the
year 2008 (25%).

This type of technology gives the freedom to retail customers.

Centralized Processing Derived Economies of

Units Scale

Electronic Straight Through Reduced Transaction

Processing Cost

Data Warehousing , CRM Improve cost efficiency,

Cross sell

Innovative Technology Provide new or

Application superior products

Fig – 2.3

HDFC BANK is the very consistent player in the new private sector banks. New
private sector banks to withstand the competition from public sector banks came up with
innovative products and superior service.

2.4 Organisation structure of HDFC bank:

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.

The Current chairman of HDFC Bank is Deepak Parekh.

2.5 Business Strategy:

HDFC BANK mission is to be “a World Class Indian Bank", benchmarking

themselves against international standards and best practices in terms of product
offerings, technology, service levels, risk management and audit & compliance. The
objective is to build sound customer franchises across distinct businesses so as to be a
preferred provider of banking services for target retail and wholesale customer segments,
and to achieve a healthy growth in profitability, consistent with the Bank's risk appetite.
Bank is committed to do this while ensuring the highest levels of ethical standards,
professional integrity, corporate governance and regulatory compliance. Continue to
develop new product and technology is the main business strategy of the bank. Maintain
good relation with the customers is the main and prime objective of the bank.

HDFC BANK business strategy emphasizes the following:

• Increase market share in India’s expanding banking and financial services industry
by following a disciplined growth strategy focusing on quality and not on quantity and
delivering high quality customer service.
• Leverage our technology platform and open scalable systems to deliver more products to
more customers and to control operating costs.
• Maintain current high standards for asset quality through disciplined credit risk
management.
• Develop innovative products and services that attract the targeted customers and
address inefficiencies in the Indian financial sector.
• Continue to develop products and services that reduce bank’s cost of funds.
• Focus on high earnings growth with low volatility.

2.6 Inside HDFC Bank:

FIVE “S”, PART OF KAIZEN

WORK PLACE TRANSFORMATION

Focus on effective work place organization

Believe in

“Small changes lead to large improvement”

Every successful organization has their own strategy to win the race in
the competitive market. They use some technique and methodology for smooth running of
business. HDFC BANK also acquired the Japanese technique for smooth running of work
and effective work place organization.

Five ‘S’ Part of Kaizen is the technique which is used in the bank For
easy and systematic work place and eliminating unnecessary things from the work place.

BENEFIT OF FIVE “S”

• It can be started immediately.

• Every one has to participate.
• Five “S” is an entirely people driven initiatives.
• Brings in concept of ownership.
• All wastage is made visible.
FIVE ‘S’ Means:-

S- SORT SEIRI
1

S- SYSTEMATIZE SEITON
2

S- SPIC-N-SPAN SEIRO
3

S- STANDARDIZE SEIKETSU
4

S- SUSTAIN SHITSUKE
5
(1) SORT:

It focuses on eliminating unnecessary items from the work place. It is excellent way to free
up valuable floor space. It segregates items as per “require and wanted”.

Frequently Less
Required Frequently
Remove Required
everything
from
Wanted workplace
but not
Junk
required

(2) SYSTEMATIZE:-

Systematize is focus on efficient and effective Storage method. That means it identify,
organize and arrange retrieval. It largely focuses on good labelling and identification
practices.

Objective: - “A place for everything and everything in its place”.

(3) SPIC- n - SPAN:-

Spic-n-Span focuses on regular clearing and self inspection. It brings in the sense of
ownership.

(4) STANDERDIZE:-
 It focuses on simplification and standardization. It involves standard rules and policies. It
establish checklist to facilitate autonomous maintenance of workplace. It assigns
responsibility for doing various jobs and decides on Five S frequency.

(5) SUSTAIN:-

It focuses on defining a new status and standard of organized work place. Sustain means
regular training to maintain standards developed under S-4. It brings in self- discipline and
commitment towards workplace organization.

2.7 Quality Policy

• SECURITY: The bank provides long term financial security to their policy. The
bank does this by offering life insurance and pension products.
• TRUST: The bank appreciates the trust placed by their policy holders in the bank.
Hence, it will aim to manage their investments very carefully and live up to this trust.
• INNOVATION: Recognizing the different needs of our customers, the bank
offers a range of innovative products to meet these needs.
• INTEGRITY
• CUSTOMER CENTRIC
• PEOPLE CARE “ONE FOR ALL AND ALL FOR ONE”
• TEAM WORK
• JOY AND SIMPLICITY
 CHAPTER – 3

ACTIVITIES OF VARIOUS DEPARTMENTS

3.1 Human Resource Department

Man deep Maître is the Country Head HR at HDFC Bank. The HR department at HDFC
Bank has 54 people, including the trainers. The HR department is present in Mumbai,
Chennai, Delhi, Ahmedabad, Kolkata, Bangalore, Hyderabad, Chandigarh, Pune and
Lucknow. All people here in HR are MBAs, except for those handling HR operations.

• Recruitment
Our campus strategy is to look at tier one campuses like Bajaj, SP Jain, IMI, SCMHRD,
etc and not only IIM’s. We go to 70 business schools, covering faraway places like
Bhuvaneshwar, Ludhiana, Baroda, etc. Students from these institutes understand the
psyche of the upcountry customers and are ambitious about working for private sector
banks. We hire B.Com, M.Com, engineers and other graduates, as well as MBA’s. Today
the requirement is not just globalization, but localization. To achieve this we hire people
from various towns and cities. We are even hiring managers from rural background. We
have a need to locate people in 500+ branches across 300 cities. I am often asked why we
don’t recruit from IIMs. My reply is that the bank is able to attract IIM graduates after they
have worked for 3 to 5 years of work experience and they have experienced the real world
and are likely to be less disillusioned. We take screening very seriously, though we don’t
use detectives. We do speak to current employers and ask questions about performance and
integrity.

• Training
Skills requirement is cyclical and depends on stage in which the business is into. Four
years ago, asset skills were relatively rare. Then, as foreign banks got out of many asset
businesses, there were lots of people available, changing the market demand and supply.
But even now, treasury skills are difficult to find as lots of people are going overseas.
There is a dearth of individuals who have relevant skills to manage private and corporate
banking. Down the road, there will be a shortage of generalists, as organization starts
looking for individuals as solution specialist rather than product specialists. We are
swinging between generalists and specialists. We realize we need both and the pricing for
both is different. Our induction program - Swagat - covers products and business of the
bank. It is focused on developing skills and values. Four years ago we started an internal
employee referral program called ‘Karo Sifarish’. It has become one of our most preferred
channels and contributes significantly to talent acquisition. Earlier the focus was 100% on
hard skills. Now, soft skills’ training has risen from being non-existent to 30% of the
training efforts. We organize various programs including outbound experiential learning,
Open Spaces Technology, Personal Effectiveness, Leadership Excellence, art of living,
Vedanta, etc. Most training programs are delivered in house, except for highly technical
ones such as derivatives. The in house training staff comprises of 17 people. People in the
smaller cities were missing out as training program was being held in larger metros. We
started sending our trainers to the remote locations about 15 months back. The ‘Back Pack
Trainers’ take classes after office hours and this has been much appreciated. The cost
impact is minimal and the benefits manifold. We invite guest lecturers such as Bruce
Carlson, CEO, Managerial Grid and Stephen Haines, Chairman of Centre for Strategic
Management, to spend half a day with our senior management. We have a strategic tie-up
with IIM Ahmedabad for a 9 day program covering economics, quantitative, behavioural
leadership, marketing, corporate communications, etc. We send 30 of our vice presidents
every year as a part of leadership development plan.

• Best Practices
The most important thing in HR is to hold the confidence of people. Talent retention is a
challenge today. Another challenge is managing expectations of youngsters, who are
looking for fast tracking their career and want exposure quickly, they may not be lured by
money alone, but the profile that they work for. We give ample opportunity to those who
seek job rotation. If we have a new opening, we advertise it internally. Our philosophy is
that it is better to lose a person to another department than to another bank.
Our performance management system is our ‘signature’ system. I am proud to say that I
personally know most of the people across various levels in the organization. I have helped
people move internally and helped them make a better career with the bank. We have one
of the lowest rates of attrition. Middle management onwards our salaries here are good. We
are young - only 12 years old. The average age in the bank is 27. Women have been rising
up the ranks in the bank. At the junior level, over 33% of the workforce in consumer and
retail banking comprises of women. In the senior levels, it is about 12% and in the top
management, it is about 6 to 9%. This organization was very cost conscious. Today we
have foreign tours, parties at national and regional levels, award nights and outings. As an
organization we have started celebrating success.

HDFC Bank uses A Comprehensive HR approach to respond to changing resource needs.

Rapid growth in a burgeoning new market should be cause for celebration—unless the
organization that's growing can't keep up with the demands of an expanding workforce or
simplify the management of multiple databases. But Mumbai, India-based HDFC Bank
wasn't about to let that happen.

Initially the premier bank in the corporate sector, HDFC Bank began its expansion into
the retail market in 1995. Now, as it adds thousands of new customers each day and
manages dramatic increases in its retail loan portfolio—22 percent in 2003 alone—the
bank is facing the challenges that come with rapid success.
 The Bank’s staffing needs continued to increase during the year particularly in the
retail banking businesses in line with the business growth. Total number of employees
increased from 14878 as of March31, 2006 to 21477 as of March 31, 2007. The Bank
continues to focus on training its employees on a continuing basis, both on the job and
through training programs conducted by internal and external faculty.

The Bank has consistently believed that broader employee ownership of its shares has a
positive impact on its performance and employee motivation. The Bank’s employee stock
option scheme so far covers around 9000 employees.

"Today's competitive environment means that human resources [HR] must refocus away
from activities that sap value from the organization and instead focus on achieving
outcomes that improve company performance," says C.N. Ram, head of information
technology at HDFC Bank. HDFC was already an established leader in eliminating the
inefficiency traditionally associated with resource planning and management, and bank
management knew just what to do.

"Due to significant growth in the number of our employees over the past few years, we
could no longer handle our human capital management on Microsoft Excel spreadsheets
and home-grown reports," says Ram. In addition, management understood that high growth
rates might have jeopardized product quality, while tension about relative compensation
levels between the sales personnel in the branch and operations could have threatened
HDFC Bank's culture.

The bank decided to implement Oracle Human Resources applications so that HR

planning and tracking could be handled more efficiently. "We had already compiled large
amounts of data about employees who had been with us for awhile, but we lacked a
workable way to store other kinds of information, such as data about family members and
career paths at HDFC Bank," Ram explains. "We can now capture everything, which gives
senior management better data for performance evaluations and helps them do better career
planning." The solution also allows the bank to compensate on the basis of performance
and provide targeted career development, which raises credibility with employees and
helps the bank attract and retain top candidates.

HDFC Bank has also implemented Oracle's applications for HR analysis and reporting
across the enterprise, providing management with the ability to drill down into
performance and cost on an exceedingly granular level. This gives the bank the flexibility
to tailor employee record-keeping while remaining in compliance with employment laws.
Additionally, the automation of actions such as warnings, e-mail notifications, and
vacation hour balances gives the bank a complete profile for each employee. "The
comprehensive reporting capabilities save a lot of staff time and allow us to handle
profiles, skill sets, and training and integrate them with the payroll system," continues
Ram.

Low Costs Key to Profitability

A big part of the bank's tremendous performance and profitability is tied to the low cost
of operations driven by automation and reduced employee costs. The total automation of
HR processes has reduced errors and introduced a best-practices approach that encourages
employees to perform well and allows them to reap the rewards of their good performance.
"Organization-building and our high commitment to HR management are paying off," says
Ram. "These kinds of changes can be extremely destabilizing if not managed
appropriately, but HDFC Bank has embraced the right formula, and the right applications,
for successful employee management and tracking."
HDFC Bank has also implemented Oracle Balanced Scorecard for its HR function, to
evaluate the effectiveness of its HR management. Through this approach, the bank is able
to measure and improve the effectiveness of support functions and quantify non-financial
measures to better track those functions. It has also transformed the HR department from a
purely administrative organization to one that has significant input in recruitment,
development, and strategic planning. And it's able to track the effect of management
systems on shareholder influence, flows, rewards, and work systems.

3.2 Finance Department

3.2.1 Financial Planning Service

The Financial Planning service is offered as an option to long term investors. The portfolio
is advised on in a passive investment style with the asset category as mutual funds. The
planner is suitable for investors who wish to take an asset allocation based, long term
investment outlook, ignoring the short term volatilities of financial markets. The style is
steady asset allocation based on a theory that long term investing over a long time frame
will help the client achieve stated goals

• Financial Planning takes into account:

 Desired asset allocation, risk profile and return expectations

 Building cash flows correlating all expenses and income. Inflation and outflows
due to loans are considering in building the financial plan

 Future goals like retirement, housing and children's education / marriage or other
needs

• The client would be offered the following

 Financial Plan indicating the required savings to meet the desired goals.

 Asset Allocation

 Monthly reports

 Review on quarterly basis by the dedicated advisor.

3.2.2 Financial figure of the HDFC Bank

 UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2008

Particulars Quarter Quarter Year ended

ended ended 31.03.08

30.06.08 30.06.07

Unaudited Unaudited Audited

1 Interest Earned (a)+(b)+(c)+(d) 362173 206916 1011500

a) Interest/discount on advances/bills 263638 145362 696673

b) Income on Investments 95121 56047 287204

c) Interest on balances with Reserve

Bank of India and other interbank 2426 5337 27239

funds
988 170 384
d) Others

2 59342 57254 228315

Other Income

3 421515 264170 1239815

A) TOTAL INCOME (1) + (2)
4 189826 108364 48871
Interest Expended 2
5 128938 77438
Operating Expenses (i) + (ii) 374562
54058 28388
i) Employees cost 130135
74880 49050
ii) Other operating expenses 244427

6 318764 185802
B) TOTAL EXPENDITURE 863274
(4)+(5) (excluding Provisions &
Contingencies)

7 102751 78368
Operating Profit before Provisions 376541
and Contingencies (3) -(6)
8 Provisions (Other than tax) and 34447 30712 148478
Contingencies

9 - - -
Exceptional Items

10 68304 47656 228063

Profit / (Loss) from ordinary
activities before tax (7-8-9)

11 Tax Expense 21869 15533 69045

12 Net Profit / (Loss) from Ordinary 46435 32123 159018

Activities after tax (10-11)

13 - - -
Extraordinary items (net of tax
expense)
14 46435 32123 159018

Net Profit / (Loss) (12-13)

15 42462 33319 35443

Paid up equity share capital (Face

Value of Rs.10/- each)

16 - - 1114280

Reserves excluding revaluation

reserves (as per balance sheet of
17
previous accounting year)
NIL NIL NIL
Analytical Ratios
12.2% 13.1% 13.6%
(i) Percentage of shares held by
Government of India
 (ii) Capital Adequacy Ratio

(iii) Earnings per share (Rs.) 11.0 1 0.0 4 6.2

(a) Basic EPS before & after

extraordinary items (net of tax
expense) –not annualized 10.8 1 0.0 4 5.6

(b) Diluted EPS before & after

extraordinary items (net of tax
expense) -not annualized
150274 71016 90697
(iv) NPA Ratios
49607 21424 29852
(a) Gross NPA
1.5% 1.3% 1.3%
(b) Net NPA
0.5% 0.4% 0.5%
(c) % of Gross NPA to Gross
Advances 0.3% 0.3% 1.3%

(d) % of Net NPA to Net Advances

18 (v) Return on assets (average) - not 342173 250744 27198

annualized 776 008 9920

Public Shareholding 80.6% 75.3% 76.7%

- No. of shares

- Percentage of Shareholding

3.2.3 Consistent Financial Performance of HDFC Bank

3.2.4 Key Financials
3.2.4 Financial Highlights Quarter ended March 2010

• Net profit up by 32.6% to Rs. 8.4 Billion.

• Net advances increased by 27.3% to Rs. 1,258 Billion.
• Deposits up 17.2% to Rs. 1,674 Billion.
• CASA deposits grew by 37.5% to Rs 871 Billion.
• Core net interest margin of 4.4%
• Core cost-to-income ratio at 47.3%
• Gross NPA / gross advances at 1.4%
• Net NPA / net advances at 0.3%
• Capital adequacy ratio (CAR) - total 17.4% of which tier I at 13.3%.

3.3 Marketing Department

The HDFC Bank offers various sets of products to fulfil the customer needs and to satisfy
them. Each and every Products of HDFC Bank has its own features and benefits. Also each
products operation differs from one another. The various Products are as follows.
3.3.1 HDFC Product and Customer Segments:

Personal Banking

Loan Product Deposit Product Investment &

Insurance

• Auto Loan • Saving a/c • Mutual Fund

• Loan Against Security • Current a/c • Bonds
• Loan Against Property • Fixed deposit • Knowledge Centre
• Personal loan • Demat a/c • Insurance
• Credit card • Safe Deposit • General and Health
• 2-wheeler loan Lockers Insurance
• Commercial vehicles • Equity and
finance Derivatives
• Home loans • Mudra Gold Bar
• Retail business banking
• Tractor loan
• Working Capital
Finance
• Construction Equipment
Finance
• Health Care Finance
• Education Loan
• Gold Loan
Cards Payment Services Access To Bank

• Credit Card • NetSafe • Net Banking

• Debit Card • Merchant • OneView
• Prepaid Card • Prepaid Refill • InstaAlert
_______________ • Billpay Mobile Banking
Forex Services • Visa Billpay
• InstaPay • ATM
------------------------------- • Phone Banking
• DirectPay
- • Visa Money • Email Statements
Transfer • Branch Network
• Product & Services
• e–Monies
• Trade Services
Electronic Funds
• Forex service Branch Transfer
Locater • Online Payment of
• RBI Guidelines Direct Tax
Wholesale Banking
 Corporate Small and Medium Financial Institutions and
Enterprises Trusts

• Funded • Funded Services BANKS

Services • Non Funded
• Non Funded Services • Clearing Sub-Membership
Services • Specialized • RTGS – submembership
• Value Services • Fund Transfer
Added • Value added • ATM Tie-ups
Services services • Corporate Salary a/c
• Internet • Internet Banking • Tax Collection
Banking Financial Institutions

Mutual Funds

Stock Brokers

Insurance Companies

Commodities Business

Trusts

NRI Banking
 Accounts & Deposits Remittances

• Rupee Saving a/c • North America

• Rupee Current a/c • UK
• Rupee Fixed Deposits • Europe
• Foreign Currency Deposits • South East Asia
• Accounts for Returning Indians • Middle East
• Africa
• Others
Quick remit

IndiaLink

Cheque LockBox

Telegraphic/ Wire Transfer

Funds Transfer Cheques/DDs/TCs

Investment & Insurances Loans

• Mutual Funds • Home Loans

• Insurance • Loans Against Securities
• Private Banking • Loans Against Deposits
• Portfolio Investment Scheme • Gold Credit Card

Payment Services Access To Bank

• NetSafe • Net Banking

• BillPay • OneView
• InstaPay • InstaAlert
• DirectPay • ATM
• Visa Money • Phone Banking
• Online Donation • Email Statements
• Branch Network

3.3.2 Loans Available in HDFC

 The various Loan offered by HDFC are,

1. Personal loan

2. Smart loan

3. Home loan

4. Two wheeler loan

5. New car loan

6. Used car loan

7. Gold loan

8. Educational loan

9. Loan against securities

10. loan against properties

11. Loan against rental receivable

12. Health care finance

13. Retail agri loan

14. Tractor loan

15. commercial vehicle loan

16. Construction equipment finance

17. warehouse receipt loans

Personal Loan Features & Benefits

 • Borrow up to Rs 15,00,000 for any purpose depending on your requirements
• Flexible Repayment options, ranging from 12 to 60 months
• Repay with easy EMIs
• Hassle free loans
• One of the lowest interest rates
• No guarantor/security/collateral required
• Speedy loan approval
• Convenience of service at your doorstep

Credit Shield

In case of death or total permanent disability of the loanee, the loanee/nominee

can avail of the Payment Protection Insurance (Credit Shield) which insures the principle
outstanding on the loan up to a maximum of the loan amount. Principle outstanding is
defined as the amount of loan outstanding (not including any arrears in payment or
interest thereon) at the Date of Loss, having accounted for payments made and interest
accruing as determined in the Policy. Hence, the amount covered does not include any
principal added because of non - payment of EMI and also will not include interest/
accrued charges

Personal Accident Cover

In order to ensure that your family is taken care of we also offer a Personal
Accident cover of Rs.2,00,000 at a nominal premium
Premium will be charged for both these products which will be deducted from the loan
amount at the time of disbursal .A transaction fee of Rs.750 will also be deducted at the
time of disbursal. Please note that service tax @ 10% and Education cess of 3% will also
be charged.

Eligibility & Documentation: Salaried Individuals

 Include Salaried Doctors, CAs, employees of select Public and Private limited
companies, Government Sector employees including public sector undertakings and
central, state and local bodies:

Eligibility Criteria

• Minimum age of Applicant: 21 years

• Maximum age of Applicant at loan maturity: 60 years
• Minimum employment: Minimum 2 years in employment and minimum 1 year in
the current organization
• Minimum Net Monthly Income: Rs. 10,000 per month (Rs. 15,000 in Mumbai,
Delhi, Bangalore, Chennai and Hyderabad & Rs. 12,000 in Calcutta, Ahmedabad
and Cochin)

Self employed (Professionals)

Include self - employed Doctors, Chartered Accountants, Architects, and Company

Secretaries.

Eligibility Criteria

• Minimum age of Applicant: 25 years

• Maximum age of Applicant at loan maturity: 65 years
• Years in business: 4 to 7 years depending on profession
• Minimum Annual Income: Rs. 100000 p.a.

Self Employed (Individuals)

Include self-employed - Sole proprietors, Partners & Directors in the Business of

Manufacturing, Trading or Services.

Eligibility Criteria
 • Minimum age of Applicant: 21 years
• Maximum age of Applicant at loan maturity: 65 years
• Years in business: Minimum of 3 years in current business and 5 years total
business experience
• Minimum Annual Income: Rs. 1, 00,000 p.a.

Self Employed (Pvt Cos and Partnership Firms)

Include Private Companies and Partnership firms in the Business of Manufacturing,

Trading or Services

Eligibility Criteria

• Years in business: Minimum of 3 years in current business and 5 years total

business experience
• Business must be profit making for the last 2 years
• Minimum Annual Income: Rs 100000 p.a.

SMART DRAFT

Smart draft is an unsecured overdraft facility offered to HDFC Bank's corporate salary
account holders. The facility operates in the form of additional funds in the account, for use
during short-term exigencies.

Our corporate salary account holders can avail of Overdraft facility of up to 3 times* the
salary

Features & Benefits

• Overdraft limit up to 3 times the salary

• Minimum documentation

• No pre-closure charges
 • Easy-to-use and easy-to-pay facility

• Freedom to use limit through Cheque book, ATM, online transfer, etc

• Interest payable on the amount utilized

• Credits in the account set-off utilisation and help save interest

• Easy documentation

• Limit will be set on the existing account

• Non EMI based facility

HOME LOANS

HDFC Bank brings HDFC home loans to your doorstep. Over 3 decades of exclusive
experience, a dedicated team of experts and a complete package to meet all your housing
finance needs, HDFC Home Loans, help you realize your dream

Home Loans Features & Benefits

Home Loan - Home loans for individuals to purchase (fresh / resale) or construct houses.
Application can be made individually or jointly. HDFC finances up to 85% maximum of
the cost of the property (Agreement value + Stamp duty + Registration charges) based on
the repayment capacity of the customer

Home Improvement Loan - HIL facilitates internal and external repairs and other
structural improvements like painting, waterproofing, plumbing and electric works, tiling
and flooring, grills and aluminium windows. HDFC finances up to 85% of the cost of
renovation (100% for existing customers) subject to market value of the property

Home Extension Loan - HEL facilitates the extension of an existing dwelling unit. All the
terms are the same as applicable to Home Loan

Land Purchase Loan - Be it land for a dream house, or just an investment for the future,
HDFC Land Purchase Loan is a convenient loan facility to purchase land. HDFC finances
up to 85% of the cost of the land (Conditions Apply). Repayment of the loan can be done
over a maximum period of 15 years

Choose from Fixed Rate or Floating Rate with options to structure your loan as Partly
Fixed or Partly Floating

Flexible repayment options to suit your individual needs

TWO WHEELER LOANS

Whichever the bike, our Two Wheeler loan is the answer. With quick approvals, flexible
payment options and easy repayment - we'll help you buy the bike you desire

Features & Benefits

• Flexible repayment options, ranging from 12 to 48 months available even at the

point of purchase.

• Repay through post-dated cheques with easy EMIs

• Hassle free loans

• No guarantor required

• Speedy loan approval

• Available for almost all models at attractive interest rates

• Free gifts from time to time on approval of your Two Wheeler Loan. (Watch this
space for more details on the free gift promotion).

Eligibility Criteria
 • If the person is salaried or self-employed individual

• If the person between =>21 years (at the time of application) and <= 65 years (at
the end of the loan tenor).

• person minimum gross income is equivalent to Rs. 54,000/- p.a. if you reside in
Mumbai, Delhi, Chennai, Bangalore, Calcutta, Pune and Rs. 42,000/- p.a. for all
other cities

• If the person have been residing for atleast 1 year in the city

• Atleast 1 year at the given residence address (In case of transfer from other location
with less than 1 year at current location - please provide relevant documents to the
bank during loan approval stage).

• If the person have been working for atleast 1 year

• If the person have a phone at your residence or office

NEW CAR LOANS

Just decide on the make & model and our New Car Loan will bring it to your driveway in
no time

Features and benefits

• Covers range of cars and multi-utility vehicles in India

• Avail 100% finance on your favourite car

• Flexible repayment options the widest, ranging from 12 to 84 months

• Borrow up to 3 times your annual salary (for salaried professionals) and 6 times
your annual income (for self employed professionals

• Speedy processing - within 48 hours

• Repay with easy EMIs

 • Attractive Interest rates

• Hassle-free documentation

Salaried Individuals

Eligibility Criteria

• Minimum age of Applicant: 21 years

• Maximum age of Applicant at loan maturity: 58 years
• Minimum employment: 1 year in current employment and minimum 2 years of
employment
• Minimum Annual Income: Rs 100000 net annual income
• Telephone: Must at residence

Self Employed

Eligibility Criteria:

• Minimum age of Applicant: 21 years

• Maximum age of Applicant at loan maturity: 65 years
• Minimum employment: Atleast 3 years in business
• Minimum Annual Income: Net profit Rs. 60000 p.a for standard cars and
Rs.100000 p.a. for mid-sized and premium cars
• Telephone: Must at residence

Partnership Firms

Eligibility Criteria
 • Minimum Income: Net profit Rs. 60000 p.a for standard cars and Rs.100000 p.a.
for mid-sized and premium cars
• Minimum turnover: Turnover Rs. 4.5 lacs
• Telephone: One phone at least at business and at residence of the loan executing
partner

Private Limited Company

Eligibility Criteria:

• Minimum Income: Net profit Rs. 60000 p.a for standard cars and Rs.100000 p a
for mid-sized and premium cars
• Minimum turnover: Turnover Rs 4.5 lacs
• Telephone: One phone at least at business premises

Public Limited Company

Eligibility Criteria:

• Minimum Income: Net profit Rs. 60000 p.a for standard cars and Rs.100000 p a
for mid-sized and premium cars
• Minimum turnover: Turnover Rs 4.5 lacs
• Telephone: One phone at least at business premises

USED CAR LOANS

HDFC Bank's Used Car Loan will put you in the driver's seat. What's more, HDFC Bank
also helps you select good quality used cars and even value them

Features & Benefits

• Borrow up to 80% of the value of the car.

• Flexible repayment options, ranging from 12 to 60 months. Borrow up to 3 times

your annual salary (for salaried professionals) and 6 times your annual income
(for self employed professionals)

• Available for almost all car models at attractive interest rates.

• Repay with easy EMIs.

• Additional loan on existing loan - If you are a existing HDFC Bank Auto loan
customer with a clear track record of 12 months or more, then the person can get
an additional loan to the extent of your existing loan amount at attractive rate of
interest

Customer Privileges

• Special benefits for HDFC Bank account holders.

• If the person had a Preferred Account or a Corporate Salary Account with HDFC
Bank for more than six months, the person can get fast approvals on your loans
with minimal documentation.

• Age of Car at loan maturity should not cross 10 years subject to maximum loan
tenure of 60 months.

• This would also vary with higher loan value

LOAN AGAINST GOLD

Let the gold add glitter to your life. Unlock the value of your gold while you continue to
own it. With HDFC Bank's Gold Loan, the person can get an instant loan against your gold
jewellery and ornaments. The procedure is Quick, Easy and Safe.

Features & Benefits

• Avail Loan upto Rs.10, 00,000 & upto 90% of value.

• Safety & Security of your Gold Jewellery

• ATL - Anytime Liquidity

• No EMI, Service only Interest and enjoy the Loan facility

• Lower Interest Rates - Your savings can be Invested in several Investment

Avenues

• If you are an HDFC Bank customer, we have special rates for you!!!

Eligibility & Documentation

You may be a salaried individual, professional or a businessman, we have loan designed to

suit your requirement.

OVER DRAFT AGAINST GOLD JEWELLERY

Get HDFC Bank's Overdraft against Gold Jewellery with flexible repayment option and No
EMI. It is a simple overdraft facility with all the features of a bank account. So instead of
keeping your jewellery in the locker, use the value of your asset to meet your business or
personal needs

Features & Benefits

 • Loan up to 70% of value

• Loan up to Rs. 20 Lacs

• Attractive rate of interest

• No monthly instalments

• Quick processing of loan

• Simplified documentation

• Interest charged only on utilisation.

Additional Features

• Free personalised cheque book

• Free International Debit Card

• Free Net Banking, Phone Banking facility

STUDENT LOANS FOR INDIAN EDUCATION

With HDFC bank student education loans, pursue your dream higher studies without
worrying for financial assistance. We provide student education loans for all Graduate,
Post-Graduate, Engineering, Medical, MBA, Vocational Courses (Multi-Media, ERP)
offered by recognized institutions in India. No more running from pillar to post for availing
student loans! Our friendly sales managers will guide you in every step to make your
dreams into reality.

Features & Benefits –Indian Education

Student Loans Upto Rs. 15 Lakhs for education In India

Unsecured Lending Upto INR 7.5 Lakhs
No Collateral or Third Party Guarantee
Wider Range Of Collateral for Loans above INR 7.5 Lakhs
Residential Property
HDFC Bank Fixed Deposit
Loan available upto tenure of 7 years including moratorium period
Repayment to start 1 year after course completion / 6 months after obtaining employment
(whichever is earlier)
Loans available for short duration/ job oriented courses also
Avail the tax rebate, offered under section 80-E of the Income Tax Act 1961* for the entire
interest amount paid towards your education loan.

Eligibility

• You need to be a Resident Indian

• You should be aged between 16 - 35 yrs.

• Collateral is required for all loans greater than Rs. 7.5 Lakhs.

• All Loans require a co-applicant. For co-applicant eligibility

• For complete details on eligible courses and other details

STUDENT LOANS FOR FOREIGN EDUCATION

With HDFC Bank student education loans, pursue your dream studies abroad without
worrying for financial assistance. We provide student education loans for graduate, post-
graduate, MBA, Medical, Engineering, Vocational courses offered by recognized
universities in abroad. HDFC Bank student education loans offers plethora of other
benefits such as "NRE Account, Special Pricing on Inward & Outward Remittances, Travel
& Health Insurance etc to let the student focus only on his /her studies. No more running
from pillar to post for availing student loans! Our friendly sales managers will guide you in
every step to make your dreams into reality.
Features & Benefits –Education Abroad

• Student Loans Upto Rs. 20 Lakhs for education Abroad#

• Unsecured Lending Upto INR 7.5 Lakhs
• No Collateral Or Third Party Guarantee **
• Wider Range Of Collateral For Loans Above INR 7.5 Lakhs
• Residential Property
• HDFC Bank Fixed Deposit
• Loan available upto tenure of 7 years including moratorium period #
• Repayment to start 1 year after course completion / 6 months after
obtaining employment (whichever is earlier)

Eligibility

• The person should be an Indian National.

• Person should be aged between 16 - 35 yrs.

• Collateral is required for all loans greater than Rs. 7.5 Lakhs.

• All Loans require a co-applicant. For co-applicant eligibility

• For complete details on eligible courses and other details

EDUCATION LOANS FOR WORKING EXECUTIVES

Worried by the high EMI for pursuing part-time courses?? Avail HDFC bank education
loans, the only bank to offer education loans for working executives. Lower interest rates,
priority loan disbursement, free savings account are some of the benefits you get to enjoy
with our education loans!!

Features & Benefits –Working Executives

• Education loans for working executives upto INR 6 Lakhs

 • Loan Tenure Upto 5 Years.

• Moratorium Available On Select Courses

Eligibility

• Person be a Resident Indian

• Person should be aged between 21-60 yrs.

• Co-applicant's are not required / mandatory

• For complete details on eligible courses and other details

• Immediate repayment of loan from next month of the disbursement

LOANS AGAINST SECURITIES

Get liquidity from your investments, without selling them

Features & Benefits

• Person having enjoy the benefits of your securities and still avail a loan on
the same.

 No EMIs
 No Post Dated cheques
 No Pre-payment charges
 Interest charged only on utilised amount.
 Exhaustive number of approved securities
 Upto 80% Loan
 Simple and speedy processing
 Term Loan facility also available against select securities
• Overdraft facility can be availed against pledge of:
 Equity Shares: Demat Shares up to 50% of the value.
 Mutual Fund units: Mutual Funds up to 50% of Net Asset Value
 Gold ETF
 NABARD's Bhavishya Nirman Bonds
 RBI Bonds (8% Savings Bonds 2003 (Taxable))
 Life Insurance Policies issued by LIC & Select Private Insurance
Companies
 National Savings Certificate
 Kisan Vikas Patra
 Gold Deposit Certificates
 Non Convertible Debentures

• Single Scrip Lending - up to 50% of the value with any Depository Participant.
(please contact us to know the drawing power of the scrips)
• Minimum loan amount: Rs. 2,00,000/-
• Pay interest only on the amount outstanding and only for the time you use it.
• Interest is calculated on the daily outstanding balance and debited to your account
every month end.
• Shares can be pledged from any Depository (NSDL or CDSL) and any Depository
Participant across the country
• Loan available to NRIs against Shares, Mutual Funds, Insurance Policies.
• To receive the overdraft amount, a Current Account with an overdraft limit is
created in your name. This entitles you to all the Current Account benefits like
FREE International Debit Card, FREE Phone Banking, FREE Net Banking
The eligibility criteria for Loan against Securities are:

• You must be a resident of India .On selected securities, loans can be given to
Hindu Undivided Families, NRIs, companies, sole proprietorship or partnership
firms .Loans cannot be given to minors, Trusts.
• Person can pledge securities from the Bank's approved list only.
• Approved Demat Shares.

• Approved Mutual Funds.

• Gold ETF.

• NABARD's Bhavishya Nirman Bonds

• RBI Bonds

• Approved Life Insurance Policies issued by LIC.

• Approved Life Insurance Policies issued by Select Private Insurance Companies.

• National Savings Certificates.

• Kisan Vikas Patra.

• Gold Deposit Certificates.

• Securities should be in the name of eligible borrowers (Securities in the name of

minors, Trusts, partly paid up or shares in the name of individuals in companies of
which they are Directors/ Promoters cannot be accepted)

LOAN AGAINST PROPERTY

HDFC Bank brings to you Loan against Property. The person can now take a loan against
your residential or commercial property, to expand your business, plan a dream wedding,
and fund your child's education and much more.

The person can depend on us to meet all your business requirements even to purchase a
new shop or office for your business. Loan to purchase Commercial Property (LCP) is a
specially designed product to help you expand your business without reducing the capital
from your business.

Features & Benefits

• Loans to expand your business or to meet any personal need

• Residential & Commercial properties accepted

• Maximum Loan to value

• Flexible product offerings - EMI based loan / Overdraft facility available.

• High tenure loans for ease of repayment.

• Attractive interest rates.

• Specially designed products for Self Employed.

LOANS AGAINST RENTAL RECEIVABLES

Enjoy the benefits of future rentals today and execute your business plans immediately.
HDFC Bank's Loan against Rent Receivables (LARR) empowers you to use your rental
cash flows right now!

Under LARR, we provide funds for your business against your rent receivables. The
person can use the funds to grow your business, consolidate your existing loans, expand
your business into newer ventures or use the funds for any other requirement you may
have.

Features & Benefits:

• Higher eligibility on net rentals.

• Attractive interest rates.

• Extended loan tenure available.

• Customized product to suit your needs and structured specially for you.

• Simple documentation and fast processing.

HEALTH CARE FINANCE

Person need medical equipment that will change your clinic/hospital into a modern day
diagnostic centre, but don't know where to get the finance?

Don't get stressed! You have come to the right place.

Product Offering

We at HDFC Bank - Healthcare Finance offer easy loans for:

• New Equipment Finance: Finances for purchase of new medical equipment.

• Balance Transfer / Takeover: Transfer your equipment loans from other financiers
at attractive interest rates with us.

• Funding for Imported Equipment’s: Finance on imported equipment's by opening

a Letter of Credit or through Telegraphic Transfer.

• Refinance / Used Asset Finance: Funding against your existing lien-free assets.
 • Hospital Infrastructure Finance: Funding for real estate / infrastructure to meet
your growing expansion plans

Loan Features

• Loan amounts ranging from Rs. 100,000/- onwards

• Loans upto 80% of invoice value

• Repayment period of 12 to 60 months

• Repayment through post dated cheque / direct debit mandate

• Equipment to be hypothecated to HDFC Bank

• Attractive Interest Rates

RETAIL AGRI LOAN

Agriculture is the main occupation of the people of India. Nearly 2/3rd of our country's
population is directly or indirectly engaged in agriculture. It contributes to 21% of our
GDP. Keeping this in mind, we have designed the Kisan Gold Card to envisage a
convenient and hassle-free loan to the farmer for meeting his production and investment
requirements. Banks have been giving these loans, but with our technology edge we
conceived a real plastic for the farmer for giving him the convenience to bank anywhere,
anytime and not being restricted to a 10am-2pm banking culture. The card, launched in
association with Visa International, can also be used at POS terminals globally

Features & Benefits

• The Kisan Gold Card is aimed at meeting the production and investment needs of
the farming community. Production needs broadly cover crop production
requirements, including funds for all related inputs to grow a crop. We also meet
Post Harvest and Domestic consumption requirements

• The Card caters to investment needs such as purchase of agricultural related

equipment/implements, irrigation requirements, construction of farm related
 buildings, and investment in agriculture related activities such as Dairy, Piggery,
Beekeeping and the like.

• The credit limit on the card, sanctioned for three years, is based on the production
requirements of the farmer. The limit will be renewed every three years

• 24-hour Banking Facility

• The Card can be used at any HDFC Bank ATM across the country and all Visa
establishments worldwide

• Personal Accident Insurance Cover of Rs. 2 Lakh, free to all cardholders

• Daily withdrawal limit through the card is Rs. 15,000 at ATMs and Rs. 25,000 for
usage at merchant outlets

• The return on investments is the best in the industry

• The Debit Card is backed by line of credit

TRACTOR LOANS

If you are looking for finance to buy your tractor, you have come to the right place. We
offer hassle-free Tractor loan with the best terms for funding at the most attractive rates in
India.

Features & Benefits

• Covers a wide range of tractors manufactured in India.

• Covers customer segments, using tractors for agricultural as well as commercial

purposes.

• Avail finance up to 85 % on your favourite tractor.

• Flexible repayment options ranging from 12 - 84 months.

 • Speedy processing.

• Repay with easy PDC's or by way of cash collection.

• Attractive interest rates.

• Hassle Free documentation

Eligibility Criteria: For Farmers

• Land Requirement - 5 acres of irrigated or 10 acres of un-irrigated land.

• Minimum age of the applicant - 18 years.

• Maximum age of the applicant - 60 years on the date of funding.

• Income - Not less than 1 Lac per annum

Eligibility Criteria for Non Farmers

• Minimum age of Applicant: 18years

• Maximum age of the applicant – 60 years on the date of funding
• Income - Not less than 1 Lac per annum.
• Telephone - Owned / PP (Land line or Mobile) is mandatory

COMMERCIAL VEHICLE FINANCE

Are you looking at finance or loan options for the purchase of your truck, bus, tipper or
light commercial vehicle?

You are looking at the right place. We offer hassle-free commercial vehicle loans with the
best terms for funding at the most attractive rates in India.

Loans are extended for the purchase of

Commercial Vehicles - Loans for commercial vehicles (this includes buses, trucks, tempos,
tippers), LCVs (light commercial vehicles, HCVs (heavy commercial vehicles), MCVs
(medium commercial vehicles) and three wheelers.

We provide funding for all models of Telco, Ashok Leyland, Swaraj Mazda, Eicher, Bajaj
Tempo, Volvo etc. The choice is entirely yours.

Type of loans

• New Vehicles

• Used Vehicle / Refinance

• Balance Transfer

• Top-Up loans

CONSTRUCTION EQUIPMENT FINANCE

Are you looking at finance or loan options for the purchase of your construction
equipment?

You are looking at the right place. We offer hassle-free construction equipment loans with
the best terms for funding at the most attractive rates in India.

Loans are extended forthe purchase of

Any equipment working on construction/mining/civil contracts like JCB, Excavators,

Wheel Loaders, Tata/AL Tippers, Forklifts etc.

We provide funding for all models of Telcon, JCB, L&T, Schwing Stetter, Caterpiller,
Volvo etc.

Type of loans

• New Vehicles
 • Used Vehicle / Refinance

• Balance Transfer

• Top-Up loans

WAREHOUSE RECEIPT LOANS

Realize better prices and avoid distress sale for your commodity on availing HDFC Bank
Warehouse Receipt Loans. The procedure is simple, documentation is minimal and
approval is quick.

Features & Benefits

• Loans from Rs. 1 Lacs onwards depending on your needs.

• Avail Loan against wide range of commodities

• Funding extended against commodities stocked in a range of different

WH/Godowns

• Attractive interest rates.

• Quick loan approval process

• Avail loan against Demat commodities

 CHAPTER – 4
CONCLUSION

HDFC is India's premier housing finance company and enjoys an impeccable track
record in India as well as in international markets. 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, the banking arm of HDFC is expected to go on stream. The bank already has
good number of employees on board and is recruiting Sales Executives heavily to take the
headcount to many more. It is on the brim of increasing its customers through its attractive
schemes and offer.

The training provided in HDFC Bank was market segmentation and identifying prospective
customers in potential geographical location and convincing them to open an account so
that new Business Opportunities of the bank can be explored. Through this training, I got
exposure in functions of various departments in the bank; especially in marketing
department also I acquired knowledge on various products offered to the customers by the
bank. Savings Account which comes under the personal banking scheme of the bank was
the main areas in which I was trained to handle. There are twelve various options of
Savings Account offered by the bank and they provide unique advantage to the customers
who adopts it.

Bibliography

Books:

Magazine : Business World

Business Today

Websites:

www.hdfcbank.com
www.google.com
www.marketingzone.com