Sri Ramakrishna Engineering College

(Autonomous Institution Affiliated to Anna University of

Technology Coimbatore)
Vattamalaipalayam, NGGO Colony Post
Coimbatore - 641022

Department of Management

Human Resource Management

10DC203

HR PROCESS IN HDFC BANK

TERM PAPER

Submitted by
D.SAKTHIVEL
1091047

Date of submission: 23.04.011

Marks
10

Signature of the Student Faculty Sign

 INTRODUTION

HDFC Bank began 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, we are proud to say
that we are well on our way towards that goal.

HDFC Bank specializes in the provision of banking and other financial services to
corporate and institutional clients. The company’s services include commercial,
transactional and electronic banking products. It also provides treasury services,
retail banking and capital markets infrastructure. The company primarily operates
in India. HDFC Bank is headquartered in Mumbai,

India and employs about 14,900 people. The company recorded revenues of
INR124,928 million (approximately $3,131.9 million) during the fiscal year ended
March 2008, an increase of 51.9% over 2007. The net profit was INR15901.8
million (approximately $398.7 million) in fiscal year 2008, an increase of 39.3%
over 2007.

HISTORY
 HDFC Bank was incorporated in the year of 1994 by Housing Development
Finance Corporation Limited (HDFC), India's premier housing finance company. It
was among the first companies to receive an 'in principle' approval from the
Reserve Bank of India (RBI) to set up a bank in the private sector. The Bank
commenced its operations as a Scheduled Commercial Bank in January 1995 with
the help of RBI's liberalization policies.

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

(promoted by Bennett, Coleman & Co. / Times Group) was merged with HDFC
Bank Ltd., in 2000. This was the first merger of two private banks in India. 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.

BOARD OF DIRECTORS

Mr. C. M. Vasudev holds a Master's Degree in Economics and Physics. He joined

the Indian Administrative Services in 1966.

Mr. Aditya Puri holds a Bachelors degree in Commerce from Punjab University
and is an associate member of the Institute of Chartered Accountants of India. Mr.
Aditya Puri has been the Managing Director of the Bank since September 1994.

OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVE:

To find the Recruitment and Selection System in the organization.

To study the process of intake of employees with relation to Experience,

Communication skills and Qualification in the organization.

ABOUT THE BANK

HDFC Bank is a young and dynamic bank, with a youthful and enthusiastic team
determined to accomplish the vision of becoming a world-class Indian bank.

HDFC’s business philosophy is based on four core values - Customer Focus,

Operational Excellence, Product Leadership and People. They believe that the
ultimate identity and success of bank will reside in the exceptional quality of
people and their extraordinary efforts. For this reason, they are committed to
hiring, developing, motivating and retaining the best people in the industry.

PROFILE

HDFC Bank Limited

Type Public

Traded as BSE: 500180,NYSE: HDB

Industry Banking
Financial services
 Founded August 1994

Headquarters Mumbai, India

Area served Worldwide

Key people Aditya Puri (MD)

Products Finance and insurance

Investment Banking
Commercial Banking
Retail Banking
Private Banking
Asset Management
Mortgages
Credit Cards[1]

Revenue  $4.476 billion (2010)[2]

Profit  $545 million (2010)[2]

Total assets  $53.670 billion (2010)[2]

Total equity  $6.787 billion (2010)[2]

Employees 51,888 (2010)[2]

Website HDFCBank.com

MISSION AND BUSINESS STRATEGY:-

Mission of HDFC 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. They are committed to do this while ensuring the highest
levels of ethical standards, professional integrity, corporate governance and
regulatory compliance.

Business strategy of HDFC 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 technology platform and open scalable systems to deliver more

products to more customers and to control operating costs.

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.

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.
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.

HDFC Bank was the first bank in India to launch an International Debit Card in
association with VISA (VISA Electron) and issues the MasterCard Maestro debit
card as well. The Bank launched its credit card business in late 2001. By March
2009, the bank had a total card base (debit and credit cards) of over 13 million. The
Bank is also one of the leading players in the “merchant acquiring” business with
over 70,000 Point-of-sale (POS) terminals for debit / credit cards acceptance at
merchant establishments. The Bank is well positioned as a leader in various net
based B2C opportunities including a wide range of internet banking services for
Fixed Deposits, Loans, Bill Payments, etc.

TREASURY:-

Within this business, the bank has three main product areas - Foreign Exchange
and Derivatives, Local Currency Money Market & Debt Securities, and Equities.
These services 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:-

As on 31st December 2009 the authorized share capital of the Bank is Rs. 550
crore. The paid-up capital as on said date is Rs. 455,23,65,640/- (45,52,36,564
equity shares of Rs. 10/- each). The HDFC Group holds 23.87 % of the Bank's
equity and about 16.94 % of the equity is held by the ADS Depository (in respect
of the bank's American Depository Shares (ADS) Issue). 27.46 % of the equity is
held by Foreign Institutional Investors (FIIs) and the Bank has about 4,58,683
shareholders.
CBoP and Times Bank Amalgamation:-

On May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC
Bank was formally approved by Reserve Bank of India to complete the statutory
and regulatory approval process. As per the scheme of amalgamation, shareholders
of CBoP received 1 share of HDFC Bank for every 29 shares of CboP.

The merged entity will have a strong deposit base of around Rs. 1,22,000 crore
and net advances of around Rs. 89,000 crore. The balance sheet size of the
combined entity would be over Rs. 1,63,000 crore. The amalgamation added
significant value to HDFC Bank in terms of increased branch network, geographic
reach, and customer base, and a bigger pool of skilled manpower.

DISTRIBUTION NETWORK:-

HDFC Bank is headquartered in Mumbai. The Bank has a network of 1,725

branches spread in 771 cities across India. All branches are linked on an online
real-time basis. Customers in over 500 locations are also serviced through
Telephone Banking. The Bank has a presence in all major industrial and
commercial centres across the country. Being a clearing/settlement bank to various
leading stock exchanges, the Bank has branches in the centres where the NSE/BSE
have a strong and active member base.The Bank also has 3,898-networked ATMs
across these cities. Moreover, HDFC Bank's ATM network can be accessed by all
domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus
and American Express Credit/Charge cardholders.

AWARDS:-

2010

Euro money Private Banking and Wealth Management Poll 2010-

• Best Local Bank in India (second year in a row)

• Best Private Banking Service overall (moved up from no.2 last year)

Financial Insights Innovation Awards 2010-

• Innovation in Branch Operations - Server Consolidation Project

Global Finance Award-

• Best Trade Finance Provider in India for 2010

Banking Technology Awards 2009-

• Best risk management initiative and

• Best use of Business Intelligence.

SPJIMR Marketing Impact Awards (SMIA) 2010-

RECRUITMENT & SELECTION PROCESS

Meaning:

Recruitment and Selection system refers to sourcing and building efficient Human
Resource to the organization to attain its objectives.

Functions:

1. Retail assets

• Credit cards

• Retail assets

• Retail credit

2. Retail liabilities

• Direct banking

• Direct sales liabilities

• Foreign exchange services

• Liabilities product group

• Marketing

• Retail branch banking

3. Support function

• Custody and depository services

• Finance

• Human resources

• Operations

4. Wholesale banking

• Corporate banking

• Credit and market risk

• Customer service desk

• Emerging corporate group

• Emerging enterprise group

• Equities and private banking

• FIG

• Health care finance

• Investment banking

• NRI businesses

• Stock exchange and correspondent banking

This policy complies with, and supports, the Company’s Equal Opportunities
Policy by:

• Ensuring that every stage of the recruitment and selection process is carried out
in a systematic way, based on pre-agreed criteria, to eliminate the potential for
personal bias affecting the decision making process.

• Ensuring that all decision points are fully documented to assist with subsequent
monitoring.

• Making the whole procedure as open as possible, to ensure that all candidates
understand why decisions have been taken and, where they wish, to obtain
meaningful feedback.
• Enabling demonstration of robust, transparent processes and thereby providing a
basis for defense in the event of challenge.

There are seven main stages to the procedure:

Pre-advertisement

placing advertisements and dealing with enquiries and applicants

short-listing

interviewing and selection

Post-selection procedures

Induction

monitoring

Analyzing Your Workplace:

To assist you analyze your workplace to identify recruitment or selection issues for
women, we suggest you:

• revisit your workforce profile to find where your female employees are.

• consult with your employees.

• examine your existing recruitment and selection policies and practices.

Developing Policy and Procedures

• Put in place a policy requiring recruitment and selection processes to select the
best person for the job. • Develop a quality, consistent process for recruitment that
delivers diverse recruits.

• Have a recruitment strategy that links to your business plan, and to a strategy to
retain employees.

Reviewing Recruitment and Selection Opportunities

• Monitor each stage of the recruitment process to identify any practice that may
disadvantage some candidates.
• Investigate whether women have equal opportunity in the recruitment and
selection process by collecting information on the numbers of men and wom

applying for positions

being short-listed

being interviewed

being appointed, and Survey staff about their perception of equity in recruitment
procedures.

• Consider collecting diversity information as part of the process. There could be

a pool of diverse candidates you’re not reaching or unnecessarily excluding.

Reviewing Job Descriptions:

• Ensure all job profiles/descriptions reflect the real requirements of the job,
rather than describing the person who filled that job previously.

• Write job profiles in language that encourages both men and women to apply –
including women of and Differing backgrounds. For example, avoid use of jargon
and acronyms that tend to be exclusive.

Recruiting and selecting the right people is paramount to the success of the HDFC
BANK LTD. and its ability to retain a workforce of the highest quality. This
recruitment and selection policy sets out the procedure to ensure that the best
people are recruited on merit and that are the recruitment process is free from bias
and discrimination.

PRINCIPLES:

Following are the guiding principles for recruitment and on-boarding process.
• Attracting and recruiting the right people is one of the most important activities
of the organization and is the responsibility to be owned by each and every
employee of the organization.

• Merit will be the single most important factor in selection process.

• They will ensure a diversity, both gender and ethnicity by targeted candidate
sourcing with the help of recruitment vendors and the referral program.

• While skills and profile matching play an important role, they will hire people
who are team players and have the right attitude most relevant to the culture of the
organization. Attitude is as important as aptitude.

• They believe in becoming a company of giants and emphasis is in hiring people

who can grow bigger and better than they presently are.

• They believe in providing their employee with fulfilling career paths. Towards
this, they will post vacancies internally as a preferred option while evaluating
external candidates.

• They believe that each candidate interviewed irrespective of whether she/he is

selected should become a friend of the organization. They treat all the candidates
with the utmost respect. They will be open and fair in communication with them;
this way they also enhance the brand image of the organization.

• They will continuously assess, identify and cultivate strategic talent pools
including those at the universities, management schools, and community forums to
address their long term needs.

HIRING APPROVAL

• All recruitment activities shall be undertaken based on the hiring plan as

approved by the Business Head, HR Head & the CEO. For each approved position,
a hiring requisition will be required prior to initiation of any recruitment activity. If
the hiring was not included in the planned budget, it will also require approval
from the CEO based on a recommendation from the Head HR and the CFO.

• Recruitment expense will be allocated to the concerned business unit, and

expenditure should be budgeted and pre-approved by the business unit head and
the HR Head.
CANDIDATE SOURCING:

The hiring manager along with the Human Resource Department would decide the
channel / source to use based on the nature of the recruitment. The following
sources of recruitment may beconsidered:

• Internal Sources:

- Whenever any vacancy arises, the possibility of fulfilling the requirement

internally via reassignment and relocation, re-allocation of the responsibilities or
internal promotion will be explored by the hiring function along with the HR
Department.

- Internal job postings to explore internal candidates.

• Employee Referrals – HDFC will encourage employees to refer suitable

candidates for open positions.

• Other external sources include:

- Recruitment agencies

- External job postings

- College / campus requirement

Requirement advertisements

APPLICATION PROCESSING

HDFC will process all applications promptly and inform the applicant or source
regarding the status of the application. HDFC will respond to all solicited
applications within 5 working days of receiving the application.

INTERVIEW PROCESS

• All candidates are required to undergo a face to face interview with the interview
panel before selection.
• Interviews may be conducted at a place at mutually convenient locations and time
in an effort to maintain confidentiality of the hiring effort.

• One on one meeting shall be preferred as the interview format, however

depending on the constraints panel interviews / telephone / video conference
screening could be used.

• For recruitment at junior levels, job fairs, universities etc, where large volume of
candidates, HDFC will use recruitment tests for purpose of short listing. The
candidate may be tested on the basic aptitude, analytical skills or other skills
required for the job of the candidates.

• The interview process will focus on the evaluating the candidates suitability in
terms of the job description and fit within the organization.

• Each interviewer will complete the interview feedback form and submit it to HR.
HR will compile the results from a various interviews and provide these to the line
manager for the final decision. to the interview levels.

RECRUITMENT EXPENES:

• All recruitment expenses including recruitment fees, advertisement expenses and

interview related expenses will be allocated to the concerned business unit.

• The candidate will be informed about the nature of the expenses that are
reimbursable and the supporting documents required (in original). HR will ensure
that candidate fills the necessary reimbursement forms and that he/she receives the
reimbursement at the earliest.

• Outstation/International Candidates - HDFC will pay for appropriate air fare and
expenses incurred for the stay for candidates who they decide to fly from other
locations. Prior approval from the Regional HR Leader / HR Head is required to
invite candidates. For candidates from International Locations, prior approval from
the HR Head needs to be taken.

PRE-EMPLOYEMENT CHECK

This will include both a professional reference check as well as the background
check.
• Professional reference check will be completed by the hiring manager. HDFC
will request contact information for 2 references from the candidate, and check the
quality of previous work experience and key personal characteristics/conduct/
previous record etc.

• For key positions in areas, HDFC will also perform a background check to assess
the integrity / conduct of the candidate.

• The following information regarding the candidate will be verified:

ü Proof of educational qualifications

ü Any professional certificate that is essential to the job

ü Address details

ü Passport details

ü Date of birth

ü Proof of previous employment (service certificate)

Any negative feedback and comment in the reference check will be investigated by
HR and if found genuine shall be a cause for disqualification of the candidate or
dismissal from employment.

OFFER PROCESS:

• Once the hiring decision is finalized, HR will prepare an offer / fitment as per the
compensation structure and grade and keeping in mind the internal equity.

• The offer would be communicated to the selected candidates by the hiring

manager along with HR. The candidate will sign the contract letter to formally
accept employment from the organization.

PRE-EMPLOYMENT PROCESS

As an organization, HDFC will make all necessary arrangements to ensure a

smooth joining process for the employees. HR will provide the candidate a check
list prior to joining to ease joining formalities.
RELOCATION FOR EMPLOYMENT

Where the employee has to relocate and has been pre-approved by the HR
Head and the staffing leader, the relocating candidate shall be eligible for the
following relocation assistance: The joining employ has the option to avail
temporary accommodation (which includes laundry) for the first two weeks
arranged by organization. The stay in company provided accommodation can be
extended by two weeks further based on specific approval from the Head HR.
Where the stay extends beyond 4 weeks, the respective will not be paid housing
allowance foe the corresponding period.

Local travel assistance up to positions of RO/RM/equivalent and below will be

reimbursed for one week and for SRM/equivalent and above will be reimbursed up
to two weeks.

Food expenses during the period will be reimbursed as per actual up to Rs 500/-per
day per person.

EMPLOYEMENT OF RELATIVES

The organization employs, purely on merit, the relatives of our employees as long
as it does not create a potential conflict of interest. To avoid a potential conflict of
interest and to reduce the possibilities of favoritism – the following guidelines
must be followed:

Relatives are not assigned to a position where he/she has the opportunity to check,
process, and review, approve, audit or otherwise affect the work of the persons
cited and above.

NO one is assigned to a position where she/he influences the professional progress

or promotion of the persons cited above.

If one is aware of a situation that appears to be an opportunity for people to display

favoritism to relatives, one should contact the Department Head or Human
Resources Department.

Employees will not be part of the hiring process of their relatives

INTERNSHIP PROGRAM
As part of university hire program, HDFC will provide internship opportunities to
students. Such internships will provide opportunities to students to learn while
making real contributions to the company. HDFC will follow the following
process:

• HR will coordinate with business groups to identify potential opportunities for

intern hires.

• Internship requests could be received either from the students directly or as

nominations from the educational institute.

• HR and hiring manager to tele-interview the candidates with subsequent personal

interviews in the office

• HR to coordinate with the hiring manager to develop the project plan for the hire
Based on the demonstrated capability, the intern will be provided with the
opportunity to work in multiple departments to gain a wider business
understanding

INTERNSHIP CRITERIA

Typically, the intern will be a pre-final year student of the Bachelor or Master
degree programs specializing in Financial Services/IT and any other business
stream as required. Interns will be expected to manage their won accommodation
and it will not be provided by the company.Intern will be required to sign the
confidentiality and code of conducts documents of the company

EMPLOYEE ON-BOARDING – PROCESS

The overall purpose of the new hire integration process is to ensure that the new
employee is able settle in smoothly and is able to contributing at the earliest.

PRE EMPLOYMENT INDUCTION

HDFC’s employee induction process shall begin as per the employee accepts the
job offer. The process includes:

Welcome pack: As soon as the candidate accepts the offer, a welcome pack will be
sent to the employee
A congratulatory note regarding the decision to join the organization

Contact details of a HR representative and the hiring manager

A brief company overview document

Pre-joining checklist: Include details of the documents required from the

employee. In case the employee is relocating from a different location, details of
the relocation process and the visa requirement will be outlined in this checklist

Expectations on the first day of the joining

Office resources: HR shall intimate the immediate supervisor the joining date and
immediate supervisor shall work with the IT and administration team to set up the
following 5 days prior to employee joining, the following elements and are in
working order: Email ID, phone, computing resources, work space/office, access
cards, joining kit including bank account opening form, initial reading material

POST JOINING ORIENTATION AND INDUCTION

Joining kit: The employee upon joining would be welcomed by the HR

representative and would be given a joining kit that will include: Access card,
information on employee’s email and phone number, Bank account opening form,
corporate insurance application form(if applicable),HR & Admin policy manual,
other relevant reading material ( to be prepared by hiring manager)

Classroom Induction: The employee integration process will also include

classroom training and induction where the employee will receive presentations
and trainings on various topics that would further ingrain the into the organization

On the job training: Besides formal training sessions, the employee will undergo
on-the-job function specific trainings that are facilitated by the respective functions
to help the new employee acquaint himself/herself with work in progress.

PROBATION POLICY

Probation is a trial that is mutual opportunity for the employee and HDFC to
confirm suitability for continued employment. The probation period is to establish
a stronger understanding of mutual capabilities, expectations and understanding
which may include functional training. The employee must demonstrate suitability
for continued employment. An assessment will be based on factors related to work
performance, work habits, productivity, attitude and compatibility, attendance and
punctuality, and any other matter that is linked to job performance and
expectations.

All new hires will be placed on probation for a period of 6 months from the date of
joining HR will initiate the confirmation process by sending an appraisal form to
the immediate supervisor before the completion of probationary period. The
appraisal form will need to be approved by the supervisor’s leadership

All letters of confirmation or extension of probation will be signed by the HR head

and will be stored in employee file for records.

REFERRAL BONUS AMOUNT

• The Referral Bonus Program is operated under the authority of the Budget and
Control Board’s Employee Bonus Guidelines. Under these guidelines, an employee
may receive multiple bonuses, the total of which may not exceed $2,000 in any
fiscal year.

• Referral bonus payments may be paid in a lump sum or in periodic payments

until the new employee has completed his or her probationary period. Payments
cannot be made until the referred candidate has been employed for a minimum of
one month. For example, a $1,000 referral bonus can be structured as follows:

- $250 referral bonus awarded after three months from the hire date,

- $250 referral bonus awarded after six months from the hire date,

- $500 referral bonus awarded at the end of the probationary period.

REFERRAL BONUS PROGRAM ADMINISTRATION

The Referral Program operates in accordance with the following program

requirements:

• Referral bonuses are awarded at the discretion of management with the Agency
Director or his designee having final approval authority.
• Funding for the program must come from existing agency resources.

• The Agency will provide a form for completion and submission by either the
applicant or the referring employee with the applicant’s application indicating that
the referring employee has made the referral.

• Employees selected for eligible positions must be employed by the agency for at
least one month before a referring employee may be eligible to receive a referral
bonus.

• Any disputes arising from the application of this program will be the
responsibility of the Agency

Director or his designee to resolve and will not be considered a grievance under the
State Employee Grievance Procedure Act.

• The agency HR Office will monitor the use of the Referral Bonus Program and
will report annually to the Office of Human Resources information on the use of
the Referral Bonus Program.

• The hiring process will be fair and consistent with agency policy and procedures,
with no bias for or against candidates whose selection might make another
employee eligible for a referral bonus.

Amount paid to the employees who refer the candidates and if they get selected
varies from Rs. 7000 to Rs.2000 based on the grade of the employee refereed and
the refereed candidate placed.

This amount is paid to the employees in two ways:

1. Immediately when the candidate is joined

2. After the completion of 3 months of the candidate selected.

Only middle level and senior level management employees have the opportunity of
referring the candidates. This policy/scheme is not applicable to the top
management employees. Also the employees who are under probation or training
period are not eligible for this employee referral policy.

FINDINGS
1. Recruitment at an officer and managerial level is not done effectively.

2. Many people in the organization today are in the wrong jobs and as a result, they
are not utilizing their full potential.

3. Hiring people based on personal connections when the person is not qualified
for the job.

4. Most recruitment that involves managers is done during discussions at lunch

hour, at social clubs or during the coffee break time.

5. Inadequate recruitment procedures resulted in a number of staff not being

sufficiently qualified either for the positions they hold or their grades levels,
especially in management positions.

6. Psychometric test is not conducted during the selection process.

7. Confusion in the designation and level to the employees even after permanent
status for employment is given.

8. Proper training is not given to the recruitment team and manager.

9. Reaching few prospects due to internal recruitment, internet advertising most of

the time.

REFERENCE:

HDFCBank.com

SCRIBD.COM

PDF SHARE.COM