Study of Auto Car Loans at HDFC Bank

A project Report on "STUDY OF AUTO CAR LOAN AT HDFC BANK
submitted for the Partial fulfilment of 2 year MBA Programme DBIM [MBA( PART-I) Regular] Semester I & II in the subject of TWO MONTHS SUMMER TRAINING
Submitted to DR. MANISH SIDDHPURIA Submitted by NITYA CHOWDHARY (13)
DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT, VEER NARMAD SOUTH GUJARAT UNIVERSITY SURAT. Batch 2010-2012
DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT
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DECLARATION
I undersigned Miss Nitya Chowdhary declares that this project report entitled Study of Auto Car Loans at HDFC bank, Baroda. is a result of my own work carried out during 16th May to 15th July 2011 and has not been previously submitted to any other university or institution for any other examination for any other purpose by any other person.
I will not use this project in future as submission of any other university, institution or any other publisher without written permission of my guide.
The content that I have provided is true to the best of my knowledge.
Signature
Nitya chowdhary
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CERTIFICATE
This is to certify that Miss Nitya Chowdhary has carried out her summer project titled STUDY OF AUTO CAR LOAN AT HDFC BANK at BARODA. During 16th May to 15th July and has submitted for the evaluation. To the best of my knowledge, the report has not been submitted to any university/ institution for the award of any certificate or diploma degree.
SIGNATURE
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EXECUTIVE SUMMARY
Loans have to be paid back one day. Had this been realized by all, how nice life would have been on this Planet. It would not have prompted the poet to say Neither be a Lender, nor a Borrower Be. Alas! Given the realities in life, this could remain at best a wishful thinking.
So their business is to lend and lend more. Their proficiency; skill; competency are all tested in how much they lend and how much they RECOVER and how quickly. Suffice it would be to state that this can be likened to the vigour and strength with which one goes about after fully recovering from any ailment. It is agreed by all beyond doubt Recovery is essential and get recovery is very essential.
We know right from the appraisal stage up to the actual repayment stage the banks need to be careful. We also know that once the money is in the hands of a borrower, attitudinal changes take place. The borrower, with some few exceptions may be, feels a bit more complacent as after all it is not this own money which is at stake. Therefore an attempt is made here to put all that we know already proper perspective.
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ACKNOWLEDGEMENT
This project is written in accordance with the Management in Business Administration course prescribed by Department of Business and Industrial Management for two months summer internship. I studied one of the main department of the HDFC bank i.e. auto car loan and its related departments. I would like to acknowledge my gratitude and Thanks to the head of the department, Dr. Renuka Garg and my project guide Dr. Manish siddhpuria, who helped me in my project. I am thankful for their constant guidance, support and inspiration. And I express my deep gratitude to Mrs. Ritu Bhatia (Regional Sales Manager) and Mr. Kalpesh dave (Sales Manager) and Mrs. Meghna pandya (Senior Co-ordinator) and other staff members of auto car loan for guiding me and giving me immense knowledge about the working of their respective departments. I have tried my best to prepare this report as per the requirement of MBA programme. Still, it is quite possible that there may be some errors of omission in this attempt. I sincerely welcome any suggestions for the improvement of the contest of this project. My overriding debt continues to my lovely parents and friends who provided with time, support and inspiration to prepare my project.
Nitya chowdhary
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TABLE OF CONTENT
SR. NO. Title Page Declaration Certificate Executive Summary Acknowledgement Table of Content 1 Introduction to Banking 1.1 Meaning and Definition of Banking 1.2 Origin of word Banking 1.3 Origin of Banking 1.4 Introduction to Reserve Bank of India 1.5 Banking System in India 1.6 Status of Indian Banking Industry 1.7 Banking Structure in India 1.8 Banks in India 2 Company Profile 2.1 About HDFC bank 2.2 Product Scope 2.3 Awards and Achievements 2.4 Segment of HDFC Bank 2.5 Branch Network 2.6 Mission and Business Strategy 2.7 Relationship with Customers 2.8 SWOT Analysis 3 Auto Industry in India 3.1 History
DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT Page 6
CHAPTERS
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3.2 Overview 3.3 Growth potential of Indian Auto Industry 3.4 Michael Porter Five Forces Analysis 3.5 Major Manufacturers in India Auto Market 3.6 HDFC bank Flow Chart 3.7 Meaning of Loan and its Procedure 3.8 Auto Car Policy 3.9 Rate Chart 4 5 Activities Carried out at HDFC Bank Research Methodology 5.1 Problem Statement 5.2 Research Objectives 5.3 Research Design 5.4 Data Collection 5.5 Limitations of Research 6 Analysis of the Data Conclusions and Suggestions Bibliography
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CHAPTER-1
INTRODUCTION OF BANKING
1.1 MEANING AND DEFINITION:

Bank is an institution that deals in money and its substitutes and provides crucial financial services. The principal type of baking in the modern industrial world is commercial banking & central banking. Banking means: - Accepting deposits for the purpose of lending or investment of deposits of money from the public repayable on demand otherwise and withdraw by cheque, draft or otherwise." -Banking Companies (Regulation) Act, 1949 The concise oxford dictionary has defined a bank as "Establishment for c u s t o d y o f m o n e y w h i c h i t p a y s o u t o n c u s t o m e r s o r d e r . " I n f a c t t h i s i s t h e function which the bank performed when banking originated."Banking in the most general sense, is meant the business of receving, conserving & utilizing the funds of community or of any special section of it." -By H.Wills & J. Bogan "A banker of bank is a person, a firm, or a company having a place of business where credits are opened by deposits or collection of money or currency or where money is advanced and waned. -By Findlay Sheras Thus A Bank: 1) Accept deposits of money from public, 2) Pays interest on money deposited with it. 3) Lends or invests money 4) Repays the amount on demand,
1.2 ORIGIN OF WORD BANK:
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The origin of the word bank is shrouded in mystery. According to one view point the Italian business house carrying on crude from of banking were called banchi bancheri" According to another viewpoint banking is derived from German word "Branch" which mean heap or mount. In England, the issue of paper money by the government was referred to as a raising a bank.
1.3 ORIGIN OF BANKING:

Its origin is in the simplest form and can be traced to the origin of authentic history. After recognizing the benefit of money as a medium of exchange the importance of banking was developed as it provides the safer place to store the money. This safe place ultimately evolved into financial institutions that accepts deposits and make loans i.e. modern commercial banks. Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors. For the past three decades India's banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reasons of India's growth process. The government's regular policy for Indian bank since 1969 has paid rich dividends with the nationalisation of 14 major private banks of India. Not long ago, an account holder had to wait for hours at the bank counters for getting a draft or for withdrawing his own money. Today, he has a choice. Gone are days when the most efficient bank transferred money from one branch to other in two days. Now it is simple as instant messaging or dials a pizza. Money have become the order of the day.
1.4 INTRODUCTION OF RESERVE BANK OF INDIA:-
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A central bank, reserve bank or monetary authority is the entity responsible for the monetary policy of a country or a group of member of state. Its prime responsibility is to maintain the stability of national currency and money supply, but more active duties includes controlling subsidize-loan, interest rates and acting as a lender or last resort to the banking sector during financial crises. It could also have supervisory powers, to ensure that banks and other financial institutions do not behave recklessly or fraudulently. The RBI handles the cash reserves of other banks in the country. It acts as a "Bank of Banks". It makes the transactions or transfers of money and payments occurring between the banks much easier.
1.4.1 FUNCTION OF RBI:The functions are classified into three heads, viz., A) Traditional functions B) Promotional functions C) Supervisory functions. Lets see the detailed account in these heads. A) Traditional functions 1. Monopoly of currency notes issue 2. Agent and advisor to the Government 3. Custodian of the foreign exchange reserves 4. Maintaining the external value of domestic currency 5. Ensures the internal value of the currency 6. Publishes the Economic statistical data 7. Fight against economic crisis and ensure stability of Indian economy. 8. The banker to the Government of India and the State governments. It manages the public debt. It undertakes to accept money on behalf of the Government and make payment on its behalf etc.
B) Promotional functions
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1. Provides refinance for export promotion. 2. Expansion of the facilities for the provision of the agricultural credit through NABARD. 3. Extension of the facilities for the small scale industries. 4. Helping the Co-operative sectors. 5. Prescribe the minimum statutory requirement. 6. Innovating the new banking business transactions. C) Supervisory functions 1. Granting license to Banks. 2. Inspects and makes enquiry or determine position in respect of matters under various sections of RBI and Banking regulations 3. Periodical review of the work of the commercial banks 4. Giving instruction to commercial banks 5. Control the non-banking finance corporation 6. Ensuring the health of financial system through on-site and off-site
1.5 BANKING SYSTEM IN INDIA:DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT Page 12
1.5.1 A HISTORICAL PERSPECTIVE:

B a n k i n g i n I n d i a h a s i t s o r i g i n a s e a r l y o r V e d i c p e r i o d . I t i s b e l i e v e d that the transitions from many lending to banking must have occurred even before Manu, the great Hindu furriest, who has devoted a section of his work to deposit and advances and laid down rules relating to threat of interest. During the mogul period, the indigenous banker played very important role in lending money and financing foreign trade and commerce. During the days of the East India Company it was the turn of agency house to carry on the banking business. The General Bank of India was the first joint stock bank to be established in the year 1786. The other which followed was the Bank of Hindustan and Bengal Bank. The Bank of Hindustan is reported to have continued till 1906. While other two failed in the meantime. In the first half of the 19th century the East India C o m p a n y e s t a b l i s h e d t h e r e b a n k s , t h e b a n k o f B e n g a l i n 1 8 0 9 , t h e Bank of Bombay in 1840 and the Bank of Bombay in1843. These three banks also known as the Presidency banks were the independent unit sand functioned well. These three banks were amalgamated in 1920 and new bank, the Imperial Bank of India was established on 27th January, 1921.With the passing of the State Bank of India Act in 1955 the undertaking of the Imperial Bank of India was taken over by the newly constituted SBI. The Reserve Bank of India (RBI) which is the Central bank was established in April, 1935 by passing Reserve bank of India act 1935.T h e C e n t r a l o f f i c e o f R B I i s i n M u m b a i a n d i t c o n t r o l s a l l t h e o t h e r banks in the country. In the wake of Swadeshi Movement, number of banks with the Indian management were established in the country namely, Punjab National Bank Ltd., Bank of India Ltd., Bank of Baroda Ltd., Canara Bank. Ltd. on 19th July 1969, 14 major banks of the country were nationalized and on 15th April 1980, 6 more commercial private sector banks were taken over by the government.
1.5.2 FUNCTIONS OF BANKS:

1) PRIMARY FUNCTIONS:DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT Page 13
Acceptance of Deposits Making loans & advances Loans Overdraft Cash Credit Discounting of bills of exchange
2) SECONDARY FUNCTIONS:-
Agency functions Collection of cheques & Bills etc. Collection of interest and dividends. Making payment on behalf of customers Purchase & sale of securities Facility of transfer of funds To act as trustee & executor.
3) UTILITY FUNCTIONS:
Safe custody of customers valuable articles & securities. Underwriting facility Issuing of traveller's cheque letter of credit. Facility of foreign exchanges Providing trade information Provide information regarding credit worthiness of their customer.
1.6 STATUS OF INDIAN BANKING INDUSTRY:It is useful to note some telling facts about the Indian banking industry juxtaposed with other countries, recognizing the differences between the developed and the emerging economies.
First, the structure of the industry: In the worlds top 1000 banks, the there are many more large and medium-sized domestic banks from the developed countries than from the emerging economies. Illustratively, according to The Banker 2004, out of the top 1000 banks globally, over 200 are located in USA, just above 100 in Japan, over 80 in Germany, over 40 in Spain and around 40 in the UK. Even China has as many as 16 banks within the top 1000, out of which, as many as 14 are in the 500, India, on the other hand, had 20 banks within the top 500 banks. This is perhaps reflective of differences in size of economies and of financial sectors. Second, the share of bank assets in the aggregate financial sector assets: In most emerging markets, banking sector assets comprise well over 80 per cents of total financial sector assets, whereas these figures are much lower in the developed economies. Furthermore, deposits as a share of total bank liabilities have declined since 1990 in many developed countries, while in developing countries public deposits continue to be dominant in banks. In India, the share of banking assets is around 75 per cent, as of end-March 2004. There is, no doubt, merit in recognizing the importance of diversification in the institutional and instrument specific aspects of financial intermediation in the interest of wider choice, competition and stability. However, the dominant role of banks in financial intermediation in emergence economies and particularly in India will continue in the medium term and the banks will continue to be special for a long time. In this regard, it is useful emphasis the dominance of the banks in the developing countries in promoting non-bank financial intermediaries and service including in development of debt market. Even where role of banks is apparently diminishing in the emerging markets, substantively, they continue to play a leading role in non-banking financial activities, including the development of finance markets. Third, internationalization of banking operations: The foreign controlled banking assets, as a proportion of total domestic banking assets, increased significantly in several European countries (Austria, Ireland, Spain, Germany and Nordic countries), but increases have been fairly small in some others (UK and Switzerland). Amongst the emerging economies, while there was marked increase of foreign controlled ownership in several Latin American economies, the increase has, at best, been modest in the Asian economies. Available evidence seems to indicate some correlation between the extent of liberalization of capital account in the emerging markets and the share of assets controlled by foreign banks as per the evidence available, the form of branches, seem to enjoy on par with domestic banks, as compared with
most of the other developing countries. Furthermore, the profitability of their operation in India is considerably higher than the foreign banks operation in most other developing countries. India continues to grant branch licenses more liberally than the commitments made to the W.T.O Fourth, the Share of state owned banks in total banking sector assets: Emerging economies with predominantly government owned banks, tend to have much higher state ownership of banks compared to their developed counterparts. while many emerging countries choose to privatized their public sector banking industries after a process of absorption of the overhang problems by the government, we have encouraged state run banks to diversify ownership by inducting private share capital through public offerings rather than by strategic sales and still absorb the overhang problems. the process has helped reduced the burden on the govt, enhance transparency, encourage market discipline and improved efficiency as reflected in stock market valuation promote efficient new private sector banks, while drastically reducing the share of the wholly government owned public sector banks is a good example of a dynamic mix of public and privet ownership in banks. A noteworthy feature of banking reforms in India is the growth of newly licensed private sector banks, some of which have attained globally best standards in terms of technology, services and sophistically promoted banks have surpassed branches of foreign banks in India. And could be a role model for other banks.
1.7 BANKING STRUCTURE IN INDIA:(A) Scheduled Commercial Banks:-
Public sector Banks (27)
Private sector Banks (29)
Foreign Banks in India (31)
Regional Rural Bank (133)

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Nationalised bank Other public sector banks(IDBI) SBI and its associates
Old private banks New private banks
(B) Scheduled cooperatives banks:Scheduled urban cooperatives banks (55) Scheduled state cooperatives banks (31)
1.8 BANKS IN INDIA:In India the banks are being segregated in different groups. Each group has their own benefits and limitations in operating in India. Each has their own dedicated target market. Few of them only work in rural sector while others in both rural as well as urban. Many even are only catering in cities. Some are of Indian origin and some are foreign players. All these details and many more is discussed over here. The banks and its relation with the customers, their mode of operation, the names of banks under different groups and other such useful informations are talked about. One more section has been taken note of is the upcoming foreign banks in India. The RBI has shown certain interest to involve more of foreign banks than the existing one recently. This step has paved a way for few more foreign banks to start business in India
ABN-AMRO Bank Abu Dhabi Commercial Bank American Express Bank Andhra Bank
Major Banks in India Indian Overseas Bank IndusInd Bank ING Vysya Bank Jammu & Kashmir Bank
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Allahabad Bank Bank of Baroda Bank of India Bank of Maharashtra Bank of Punjab Bank of Rajasthan Canara Bank Central Bank of India Centurion Bank China Trust Commercial Bank Citi Bank Corporation Bank Dena Bank Deutsche Bank Development Credit Bank Dhanalakshmi Bank Federal Bank HDFC Bank HSBC ICICI Bank IDBI Bank Indian Bank
Karnataka Bank Karur Vysya Bank Laxmi Vilas Bank Oriental Bank of Commerce Punjab National Bank Punjab & Sind Bank South Indian Bank Standard Chartered Bank State Bank of India (SBI) State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Indore State Bank of Mysore State Bank of Saurastra State Bank of Travancore Syndicate Bank UCO Bank Union Bank of India United Bank of India United Bank Of India UTI Bank
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CHAPTER-2
COMPANY PROFILE:-
2.1 ABOUT HDFC BANK:Bank is one amongst the firsts of the new generation, techno-savvy commercial banks of India, was set up in January 1995, after the Reserve Bank of India allowed setting up of Banks in the private sector. The Bank was promoted by the Housing Development Finance Corporation Limited, a premier housing finance company (set up in 1977) of India.
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The banks competitive strength clearly lies in the use of technology and the ability to deliver world-class service with rapid response time. Over the last 15 years, the bank has successfully gained market share in its target customer franchises while maintaining healthy profitability and asset quality. 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. The Bank is also one of the leading players in the merchant acquiring business with over 50,000 Point-of-sale (POS) terminals for debit /credit cards acceptance at merchant establishments. PROMOTER HDFC is India's premier housing finance company and enjoys an impeccable track recording 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
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compliance. HDFC Bank's business philosophy is based on four core values Operational Excellence, Customer Focus, Product Leadership and People. 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. DISTRIBUTION NETWORK HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network. 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 centres 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 centres where the NSE/BSE has a strong and active member base. The Bank also has a network of about over 5471 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.
BOARD OF DIRECTORS 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 Bank has five independent directors and six 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. 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. List of Board of directors:
Mr. C. M. Vasudev, Chairman Mrs. Renu Karnad (up to 16.07.2010 & re-appointed on 27.01.2011) Mr. Ashim Samanta Dr. Pandit Palande Mr. Partho Datta Mr. Bobby Parikh Mr. Anami N Roy Mr. Keki Mistry (upto 26.03.2011) Mr. Aditya Puri, Managing Director Mr. Harish Engineer, Executive Director Mr. Paresh Sukthankar, Executive Director
TECHNOLOGY HDFC Bank operates in a highly automated environment in terms of information technology and communication systems. All the bank's branches have online connectivity, which enables the bank to offer speedy funds transfer facilities to its customers. Multi-branch access is also provided to retail customers through the branch network and Automated Teller Machines (ATMs). The Bank has made substantial efforts and investments in acquiring the best technology available internationally, to build the infrastructure for a world class bank. The
Bank's business is supported by scalable and robust systems which ensure that our clients always get the finest services we offer. The Bank has prioritized its engagement in technology and the internet as one of its key goals and has already made significant progress in web-enabling its core businesses. In each of its businesses, the Bank has succeeded in leveraging its market position, expertise and technology to create a competitive advantage and build market share. RATING 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 "AAA ( 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".
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 PRODUCT SCOPE

HDFC Bank offers a bunch of products and services to meet the every need of the people. The company cares for both, individuals as well as corporate and small and medium enterprises. For individuals, the company has a range accounts, investment, and pension scheme, different types of loans and cards that assist the customers. The customers can choose the suitable one from a range of products which will suit their life-stage and needs. For organizations the company has a host of customized solutions that range from funded services, Non-funded services, Value addition services, Mutual fund etc. These affordable plans apart from providing long term value to the employees help in enhancing goodwill of the company. The products of the company are categorized into various sections which are as follows:
Accounts and deposits. Loans. Investments and Insurance. Forex and payment services. Cards. Customer centre
PRODUCTS AND SERVICES AT A GLANCE ACCOUNTS & DEPOSITS - Regular Savings Account - Savings Plus Account - Savings Max Account - Senior Citizens Account LOANS - Personal Loans - Home Loans - Two Wheeler Loans - New Car Loans INVESTMENTS & INSURANCE - Mutual Funds - Tax Planning - Insurance - Bonds
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- No Frills Account - Salary Account - Kid's Advantage Account - Pension Saving Bank A/c - Family Savings Account -Plus Current Account -Trade Current Account - Premium Current Account - Regular Current Account - Apex Current Account - Max Current Account - Merchant Current Account - Regular Fixed Deposit -Recurring Deposits. - Super Saver Account - Sweep-in Account - HDFC Bank Imperia/Classic/Preferred Banking
- Used Car Loans - Overdraft against Car - Express Loans - Loan against Securities - Loan against Property -Loan against Rental Receivables -Health care finance -Tractor Loans - Commercial Vehicle Finance - Working Capital Finance - Construction Equipment Finance
- Financial Planning - Knowledge Centre - Equities & Derivatives - Mudra Gold Bar - Mudra silver Bar
FOREX SERVICES - Product & Services - Trade services
PAYMENT SERVICES - Net Safe - Prepaid Refill
ACCESS YOUR ACCOUNT THROUGH -Net Banking -Credit card Online -One View -InstaAlert -Mobile Banking
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- Forex service Branch locater - Bill Pay - Forex Limits - Forex Plus Card - Direct Pay - Visa Money Transfer
- E-Monies Electronic Funds Transfer - Excise & Service Tax Payment
-ATM -Phone Banking -Email Statements -Branch Network
2.3 AWARDS AND ACHEIVEMENTS OF HDFC BANK:

HDFC Bank began operations in 1995 with a simple mission: to be a "Worldclass 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. It is extremely gratifying that our efforts towards providing customer convenience have been appreciated both nationally and internationally. Some appreciations received by HDFC Bank: In 2011 The Asian Banker - The strongest bank in the Asia Pacific Bloomberg UTVs Financial Leadership awards Best bank IDC FIIA Awards - Excellence in customer experience In 2010 IBA Banking Technology Awards:Technology Bank of the Year Best Online Bank Best use of business intelligence Best Customer Initiative Best Risk Management system Avaya Global Connect 2010 Customer Responsiveness Award Business World Best Bank Awards Best Bank (Large) Celents Banking Innovation Award Model Bank MIS Asia IT Excellence Award Best Bottom Line (IT Category) Dun and Bradstreet Banking Awards:Overall Best Bank Best Private bank Best Private Sector Bank in SME NDTV Business Leadership Awards Best Private Sector Bank Economic Times Awards for Corporate Excellence Business leader of the Year (ADITYA PURI) Outlook Money Awards Best Bank
Global Finance Awards Best Trade Finance Provider in India The Banker and PWM Global Private Banking Awards Best Bank in India The Asset Triple A Award Best Cash Management Bank in India Forbes India Fab 50 Companies
HDFC Bank is aware that all these awards are mere milestones in the continuing, neverending journey of providing excellent service to our customers. We are confident, however, that with your feedback and support, we will be able to maintain and improve our services.
2.4 SEGMENT OF HDFC BANK:2.4.1 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 banks requirements. The products are backed by world-class service and delivered to the customers through the growing branch network, as well as through alternative delivery channels like ATMs, Phone Banking, Net Banking and Mobile Banking. 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.
2.4.2 WHOLESALE BANKING SERVICES:

The Bank s target market ranges from large 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.
2.4.3 TREASURY SERVICES:

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. The Bank offers derivative products to its customers, who use them to hedge their market risks, within the framework of regulations as may apply from time to time. The Bank also deals in derivatives on its own account and also for the purpose of its own balance sheet risk management. The operations of HDFC Securities Ltd. have been classified under the retail banking segment.
2.5 BRANCH NETWORK:Currently as on March 31, 2011, the Banks distribution network is increasing day by day and has reached nearly to 2200 branches and ATMs in the country are also increasing day by day and has nearly reached to 6000 ATMs in the country. The number of cities has also increased and nearly reached to 1100 cities in the country and there is a wide scope of increase in the number of cities as the bank is still in the growth stage. The bank offers many innovative products & services to individuals, corporate, trusts, governments, partnerships, financial institutions, mutual funds, insurance companies. It is a path breaker in the Indian banking sector.
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2.6 MISSION AND BUSINESS STRATEGY: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, corporate governance and regulatory compliance. 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.
2.6.1 HDFC banks business strategy emphasizes the following: Increase our market share in Indias 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 scale cable systems to deliver more products to more customers and to control operating costs. Maintain our current high standards for asset quality through disciplined credit risk management. Develop innovative products and services that attract our targeted customers and address inefficiencies in the Indian financial sector. Continue to develop products and services that reduce our cost of funds. Focus on high earnings growth with low volatility. HDFC Bank business philosophy is based on four core values Customer Focus, Operational Excellence, Product Leadership and People. We believe that the ultimate identity and success of our bank will reside in the exceptional quality of our people and their extraordinary efforts. For this reason, we are committed to hiring, developing, motivating and retaining the best people in the industry.
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2.7 HDFC BANK TRIES TO MAINTAIN RELATIONSHIP WITH CUSTOMER IN FOLLOWING WAYS:
HDFC BANK GIVIES INFORMATION: You can get information on interest rates, common fees and charges through any one of the following: Looking at the notices in our branches; phoning our branches or help-lines; Looking on our website; Asking our help desk; Referring to the service guide. HDFC BANK HELPS YOU TO UNDERSTAND HOW THERE FINANCIAL PRODUCTS AND SERVICES WORK BY: HDFC Bank provides you information about them in any one or more of the following languages: Hindi, English or the appropriate local language. Ensuring that there advertising and promotional literature is clear and not misleading. Ensuring that you are given clear information about their products and services, the terms and conditions and the interest rates/service charges, which apply to them. HDFC Bank provides you information on what are the benefits to you. How you can avail of the benefits, and whom you can contact for addressing you queries. Advise you what information/documentation we need from you.
HDFC BANK HELP YOU USE YOUR ACCOUNT OR SERVICE BY: Provides you a Relationship manager or personal banker which helps you in assisting your transactions. Providing you regular appropriate updates. Keeping you informed about changes in the interest rates, charges or terms and conditions. BEFORE YOU BECOME A CUSTOMER HDFC BANK WILL: Give you clear information explaining the key features of the services and products you tell us you are interested in;
Give you information on any type of products and services which we offer and that may suit your needs; Tell you if we offer products and services in more than one and tell you how to use them; Tell you what information we need from you to prove your identity and Address. DEAL QUICKLY AND EFFECTIVELY WITH YOUR QUERIES AND COMPLAINTS BY: Offering channels for you to route your queries. Listening to you patiently. Accepting our mistakes, if any. Correcting mistakes/ implementing changes to address your queries Communicating our response to you promptly. Telling you how to take your complaint forward if you are not satisfied with the response. HDFC BANK EFFORT TO ENSURE SATISFACTION OF CUSTOMERS: Promote good and fair banking practices by setting minimum standards in dealing with you. Increase transparency so that you can have a better understanding of what you can reasonably expect of the services; Encourage market forces, through competition, to achieve higher operating standards; Assisting a personal banker to customers who can look after his accounts and give timely updates. Promote a fair and friendly relationship between you and your bank;
2.8 SWOT ANALYSIS OF HDFC:SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favourable and unfavourable to achieving that objective. The technique is credited to Albert Humphrey, who led a convention at Stanford University in the 1960s and 1970s using data from Fortune 500 companies. The swot analysis of HDFC bank is as follows:DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT Page 31
STRENGTHS:1. HDFC is the strongest and most venerable play on Indian mortgages over the long term. The management of the bank is termed to be one of the best in the country. 2. HDFC has differentiated itself from its peers with its diversified network and revamped distribution strategy 3. HDFC has been highly proactive in passing on the cost and benefit to customers. 4. Besides the core business, HDFCs insurance, AMC, banking, BPO, and real estate private equity businesses are also growing at a rapid pace and the estimated value of its Investments/subsidiaries explain ~30% of HDFCs market capitalization. 5. High degree of customer satisfaction. 6. Lower response time with efficient and effective service. 7. Dedicated workforce aiming at making a long-term career in the field. 8. Products have required accreditations. 9. Superior customer service vs. competitors 10. Large share of low-cost deposits, higher net interest margin 11. Better quality of assets, NPA of 0.4 per cent 12. Free float available, FIIs can buy its stock 13. Higher profitability
WEAKNESSES:1. High dependence on individual loans. 2. Major stake held by American financial groups which are under stress due to economic slowdown. 3 .Customer service staff needs training. 4. Processes and systems, etc need to be better managed 5. Management cover insufficient. 6. Sectoral growth is constrained by low unemployment levels and competition for staff
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7. Marginal international presence 8. Not very aggressive in MOA space, growing only organically 9. Possible takeover target from the foreign banks. OPPURTUNITIES:1. Fast growing insurance business in the country. 2. Untapped rural markets. 3. Could extend to overseas broadly 4. Fast-track career development opportunities on an industry-wide basis. 5. An applied research centre to create opportunities for developing techniques to provide added-value services. 6. Unique partnership to create job opportunities for IFBIs PGDBM students 7. HDFC bank automates business processes with Staff ware; HDFC Bank anticipates major cost savings whilst maintaining high levels of customer service thanks to new enterprise software agreement. 8. HDFC Bank plans to set up a non-banking finance company (NBFC) to undertake fund-based activities. 9. After showing a significant growth overall, India is able to attract many international financial & banking institutes, which are known for their state of art working and keeping low operation costs.
THREATS:1. Loss of market share to commercial banks and HDFC 2. Higher than expected increase in funding cost. 3. Risk of fraud and NPA accretion due increasing in interest rates and fall in property prices is inherent to the mortgage business 4. Lack of infrastructure in rural areas could constrain investment. 5.High volume/low cost market is intensely competitive. 6. Very high competition prevailing in the industry
7. Extension overseas holds a lot of risk 8. Threat from the collections dept. 9. Varying and In-Convenient ECS dates. 10. Unlike Government Banks, an account needs a minimum balance of Rs.10, 000.
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CHAPTER-3
AUTO INDUSTRY IN INDIA
3.1 History:The first car ran on India's roads in 1897. Until the 1930s, cars were imported directly, but in very small numbers. Embryonic automotive industry emerged in India in the 1940s. Mahindra & Mahindra was established by two brothers as a trading company in 1945, and began assembly of Jeep CJ-3A utility vehicles under license from Willys. The company soon branched out into the manufacture of light commercial vehicles (LCVs) and agricultural tractors. Following the independence, in 1947, the Government of India and the private
sector launched efforts to create an automotive component manufacturing industry to supply to the automobile industry. However, the growth was relatively slow in the 1950s and 1960s due to nationalisation and the license raj which hampered the Indian private sector. After
1970, the automotive industry started to grow, but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars were still a major luxury. Japanese manufacturers entered the Indian market ultimately leading to the establishment of Maruti Udyog. A number of foreign firms initiated joint ventures with Indian companies. In the 1980s, a number of Japanese manufacturers launched joint-ventures for building motorcycles and light commercial-vehicles. It was at this time that the Indian government chose Suzuki for its joint-venture to manufacture small cars. Following the economic liberalisation in 1991 and the gradual weakening of the license raj, a number of Indian and multi-national car companies launched operations. Since then, automotive component and automobile manufacturing growth has accelerated to meet domestic and export demands. Following economic liberalization in India in 1991, the Indian automotive industry has demonstrated sustained growth as a result of increased competitiveness and relaxed restrictions. Several Indian automobile manufacturers such as Tata Motors, Maruti Suzuki and Mahindra and Mahindra, expanded their domestic and international operations. India's robust economic growth led to the further expansion of its domestic automobile market which has attracted significant India-specific investment by multinational automobile manufacturers. In February 2009, monthly sales of passenger cars in India exceeded 100,000 units and have since grown rapidly to a record monthly high of 182,992 units in October 2009. From 2003 to 2010, car sales in India have progressed at a CAGR of 13.7%, and with only 10% of Indian households owning a car in 2009 (whereas this figure reaches 80% in Switzerland for example) this progression is unlikely to stop in the coming decade. Congestion of Indian roads, more than market demand, will likely be the limiting factor. SIAM is the apex industry body representing all the vehicle manufacturers, home-grown and international, in India.
3.2 Overview:The Automotive industry in India is one of the largest in the world and one of the fastest growing globally. India manufactures over 17.5 million vehicles (including 2 wheeled and 4 wheeled) and exports about 2.33 million every year. It is the world's second largest manufacturer of motorcycles, with annual sales exceeding 8.5 million in 2009. India's passenger car and commercial vehicle manufacturing industry is the seventh largest in the
world, with an annual production of more than 3.7 million units in 2010. According to recent reports, India is set to overtake Brazil to become the sixth largest passenger vehicle producer in the world, growing 16-18 per cent to sell around three million units in the course of 2011-12. In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand. As of 2010, India is home to 40 million passenger vehicles and more than 3.7 million automotive vehicles were produced in India in 2010 (an increase of 33.9%), making the country the second fastest growing automobile market in the world. According to the Society of Indian Automobile Manufacturers, annual car sales are projected to increase up to 5 million vehicles by 2015 and more than 9 million by 2020. By 2050, the country is expected to top the world in car volumes with approximately 611 million vehicles on the nation's roads. A chunk of Indias car manufacturing industry is based in and around Chennai also known as the Detroit of India with the India operations of ford, Hyundai, Renault and Nissan headquartered in the city and BMW having an assembly plant on the outskirts. Chennai accounts for 60 per cent of the country's automotive Gurgaon and Manesar in Haryana are hubs where all of the Maruti Suzuki cars in India are manufactured. The Chakan corridor near Pune, Maharashtra is another vehicular production hub with companies like Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata Motors, Mercedes Benz, Land Rover, Fiat and Force Motors having assembly plants in the area. Ahmedabad with the Tata Nano plant, Aurangabad with Audi, Kolkatta with HindustanMotors,Noida with Honda and Bangalore with Toyota are some of the other automotive manufacturing regions around the country. The Indian Automobile Industry is manufacturing over 11 million vehicles and exporting about 1.5 million every year. The dominant products of the industry are two wheelers with a market share of over 75% and passenger cars with a market share of about 16%. Commercial vehicles and three wheelers share about 9% of the market between them. About 91% of the vehicles sold are used by households and only about 9% for commercial purposes. The industry has attained a turnover of more than USD 35 billion and provides direct and indirect employment to over 13 million people. The supply chain of this industry in India is very similar to the supply chain of the automotive industry in Europe and America. This may present its own set of opportunities and threats. The orders of the industry arise from the bottom of the supply chain i.e., from the consumers and go through the automakers and
climbs up until the third tier suppliers. However the products, as channelled in every traditional automotive industry, flow from the top of the supply chain to reach the consumers. Interestingly, the level of trade exports in this sector in India has been medium and imports have been low. However, this is rapidly changing and both exports and imports are increasing. The demand determinants of the industry are factors like affordability, product innovation, infrastructure and price of fuel. Also, the basis of competition in the sector is high and increasing, and its life cycle stage is growth. With a rapidly growing middle class, all the advantages of this sector in India are yet to be leveraged. Note that, with a high cost of developing production facilities, limited accessibility to new technology and soaring competition, the barriers to enter the Indian Automotive sector are high. On the other hand, India has a well-developed tax structure. The power to levy taxes and duties is distributed among the three tiers of Government. The cost structure of the industry is fairly traditional, but the profitability of motor vehicle manufacturers has been rising over the past five years. Major players, like Tata Motors and Maruti Suzuki have material cost of about 80% but are recording profits after tax of about 6% to 11%. The level of technology change in the Motor vehicle Industry has been high but, the rate of change in technology has been medium. Investment in the technology by the producers has been high. System-suppliers of integrated components and sub-systems have become the order of the day. However, further investment in new technologies will help the industry be more competitive. Over the past few years, the industry has been volatile. Currently, Indias increasing per capita disposable income which is expected to rise by 106% by 2015 and growth in exports is playing a major role in the rise and competitiveness of the industry. Tata Motors is leading the commercial vehicle segment with a market share of about 64%. Maruti Suzuki is leading the passenger vehicle segment with a market share of 46%. Hyundai Motor India and Mahindra and Mahindra are focusing expanding their footprint in the overseas market. Hero Honda Motors is occupying over 41% and sharing 26% of the two wheeler market in India with Bajaj Auto. Bajaj Auto in itself is occupying about 58% of the three wheeler market. Consumers are very important of the survival of the Motor Vehicle manufacturing industry. In 2008-09, customer sentiment dropped, which burned on the augmentation in demand of cars. Steel is the major input used by manufacturers and the rise in price of steel is putting a cost pressure on manufacturers and cost is getting transferred to
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the end consumer. The price of oil and petrol affect the driving habits of consumers and the type of car they buy. The key to success in the industry is to improve labour productivity, labour flexibility, and capital efficiency. Having quality manpower, infrastructure improvements, and raw material availability also play a major role. Access to latest and most efficient technology and techniques will bring competitive advantage to the major players. Utilising manufacturing plants to optimum level and understanding implications from the government policies are the essentials in the Automotive Industry of India. Both, Industry and Indian Government are obligated to intervene the Indian Automotive industry. The Indian government should facilitate infrastructure creation, create favourable and predictable business environment, attract investment and promote research and development. The role of Industry will primarily be in designing and manufacturing products of world-class quality establishing cost competitiveness and improving productivity in labour and in capital. With a combined effort, the Indian Automotive industry will emerge as the destination of choice in the world for design and manufacturing of automobiles.
3.3 Growth Potential of the Indian Auto Industry:There are several factors, which are expected to contribute to the growth in the automotive industry. These are as follows: Increasing Demand for vehicles:
This has been a result of the growth in income levels and easy availability of financing options. Greater consumer awareness and closer linkages with the global auto trends, for example, shorter life cycles of vehicles due to faster replacement, have led companies to introduce contemporary products in the Indian market. The CAGR of 14.1 per cent achieved by the domestic automotive industry between 2001-02 and 2006-07 makes India one of the fastest growing markets in the world.
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Stable Economic Policies Adopted by Successive Governments:
The Indian Government has ensured continuity in reforms and policies in the country, which has contributed to the overall economic growth, including the growth of the automotive sector. In addition, the government has taken specific policy initiatives, such as lower excise duties on smaller cars, etc to boost local demand. Implementation of VAT has positioned India globally, as one of the leading low cost manufacturing sources. India is expected to emerge as the manufacturing hub for small cars. It has already been recognised as a low cost source for components. Vehicles are also expected to gain much from the global trend in outsourcing to low cost countries. Availability of Low Cost Skilled Manpower:
The cost of quality manpower in India is one of the lowest in the world. In terms of availability, India produces 400,000 Engineering graduates every year and it is estimated that on an average roughly 7 million skilled workers enter the workforce every year. High Quality Standards:
The Made in India brand is rapidly getting associated with quality. Already, nine Indian component manufacturers have won the Deming Award for quality and most of the leading component manufacturers are QS and ISO certified. Proximity to Key Markets :
Proximity to other growing Asian economies and emerging markets like Africa gives India a strong advantage over other competing nations. Besides the freight cost of shipments from India to Europe is cheaper as compared to freight costs of other competing countries like Thailand. Growth forecasts as per Automotive Mission Plan:
The size of the Indian automotive industry is expected to grow at a rate of 13 per cent per annum over the next decade to reach around US$ 120-159 billion by 2016. In volume terms, the market is expected to reach 31.96 million units by 2015. The total investments required to support the growth are estimated at around US$ 35-40 billion. Two wheelers are expected to lead the growth, with estimated sales of 27.8 million units by 2016. Sales of passenger
vehicles are expected to grow from the current 1.58 million vehicles to 2.65 million vehicles by 2015.
3.4 Michael Porters Five Forces Analysis:Michael Porter identified five forces that influence an industry. These forces are: (1) degree of rivalry; (2) threat of substitutes; (3) barriers to entry; (4) buyer power; and (5) supplier power. For more on this framework proposed by Porter, like other industries operating under free market, capitalistic systems, viewing the automotive industry through the lens of Porters Five Forces can be helpful in understanding the forces at play. 1) Degree of Rivalry Despite the high concentration ratios seen in the U.S. market which typically signify that a lesser degree of competition is seen in the industry, rivalry in the U.S. and the global automotive industry is intense. Clearly, the concentration ratios do not tell the whole story. The automotive industry in the U.S. is no longer the playground of the Big 3 (GM, Ford, and Daimler Chrysler); global companies compete in the U.S. market, while U.S. companies have globalized themselves. In the 1980s, the Japanese car makers Honda and Toyota entered a fairly disciplined U.S. market and have been very focused in growing their shares of the market. The great diversity of rivals in terms of cultures and associated philosophies has intensified rivalry in the industry. Market growth is slow in the established markets of the U.S. and Western Europe, and companies must fight fiercely to take out gains or prevent losses in market share. However, growth is potentially huge in the rapidly industrializing nations of China and India; in these booming markets, companies could take advantage of the opportunities to reap handsome rewards. The degree of rivalry in the automotive industry is further heightened by high fixed costs associated with manufacturing cars and trucks and the low switching costs for consumers when buying different makes and models. 2) Threat of Substitutes The threat of substitutes to the automotive industry is fairly mild. Numerous other forms of transportation are available, but none offer the utility, convenience, independence, and value afforded by automobiles. The switching costs associated with using a different mode of
transportation, such as train, may be high in terms of personal time (i.e., independence), convenience, and utility (e.g., luggage capacity), but not necessarily monetarily (e.g., round trip train fare on MARTA would most likely be less expensive than the cost of fuel consumed on a similar round trip, daily parking, car insurance, and maintenance). The exception to this statement occurs in the global urban areas with high population densities. In these areas, the substitutes available (e.g., walking, mass transit, bicycles, etc.) can be less costly than automobiles and thus alternative modes of transportation are often preferred. Also, there are inherent underlying social and cultural attitudes that keep people from owning automobiles in some parts of the world. Many nations are not as spread out or as mobile as the U.S.; they are constrained either by geography, race, class, or religion and the need for personal transportation is not as great, yet. The American dream of a car [or two] in every garage is not what the rest of the world currently wants or needs. However, the marketing arms of the global automotive manufacturers are certainly working very hard to change this paradigm, and with unprecedented production volumes worldwide, all signs indicate that they are succeeding. Most with the ability and means to own a vehicle, who live in a society with the necessary infrastructure (e.g., roads and fuelling stations), will do so.
3) Barriers to Entry The barriers to enter the automotive industry are substantial. For a new company, the start up capital required to establish manufacturing capacity to achieve minimum efficient scale is prohibitive. An automotive manufacturing facility is quite specialized and in the event of failure could not be easily retooled. Although the barriers to new companies are substantial, established companies are entering new markets through strategic partnerships or through buying out or merging with other companies. In fact, the barriers to entry for new (or different) markets may be quite low; in the 1980s, U.S. companies practically invited Japanese makers into the U.S. by failing to offer quality vehicles in the lower price markets. All of the large automotive companies have globalized and entered foreign markets with varying degrees of success.
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In the newer, undeveloped markets of Asia, Africa, and South America, the barriers to entry similarly exist. However, a domestic start up, with local knowledge and expertise, has the potential to compete in its home market against the global firms who are not yet well established there. Such an operation, if successful, would surely be snatched up by one of the global giants and incorporated into its fold. 4) Buyer and Supplier Power In the relationship between the automotive industry and its suppliers, the power axis is substantially tipped in the industrys favour. The automotive industry is comprised of powerful buyers who are generally able to dictate their terms to their suppliers. There are specific characteristics that make members of the automotive industry powerful buyers: (1) there is not a grand proliferation of companies manufacturing automotives, and the four largest automotive companies in the U.S. have roughly 90% of the value of shipments and value added in the U.S. (2) automotive parts (e.g., oil filters, mufflers, belts, etc.) are standardized commodities and these parts are only used on automobiles; and (3) backward integration can and does occur, as seen in summer 2005 when Ford purchased struggling parts maker Visteon. In the relationship between the automotive industry and its ultimate consumers, purchasers of finished vehicles, the power axis is tipped in the consumers favour. Consumers wield the greatest power in this relationship due to the fairly standardized nature of the automotive commodity (a vehicle) and the low switching costs associated with selecting from among competing brands. However, the automotive industry remains marginally powerful due to the large customer to producer ratio. The automotive industry is a dynamic place. With the forces above at play, and with history as a guide, it is safe to say that the automotive industry will continue to change, evolve, and adapt.
3.5 Major Manufacturers in the Indian Auto Market:3.5.1 Tata Motors:Market Share: Commercial Vehicles 63.94%, Passenger Vehicles 16.45%
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Tata Motors Limited is Indias largest automobile company. It is the leader in commercial vehicles and among the top three in passenger vehicles. Tata Motors has winning products in the compact, midsize car and utility vehicle segments. The company is the world's fourth largest truck manufacturer, and the world's second largest bus manufacturer with over 24,000 employees. Since first rolled out in 1954, Tata Motors as has produced and sold over 4 million vehicles in India. Tata Motors is the first company from India's engineering sector to be listed in the New York Stock Exchange (September 2004), has also emerged as an international automobile company. Through subsidiaries and associate companies, Tata Motors has operations in the United Kingdom, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business comprising the two British brands which was acquired in 2008. In 2004, it acquired the Daewoo Commercial Vehicles Company, South Korea's second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market, while also exporting these products to several international markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, and subsequently the remaining stake in 2009. Hispano's presence is being expanded in other markets. In 2006, Tata Motors formed a joint venture with the Brazil-based Marcopolo, a global leader in body-building for buses and coaches to manufacture fully-built buses and coaches for India and select international markets. In 2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the company's pickup vehicles in Thailand. The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup truck, with the Xenon having been launched in Thailand in 2008. Tata Motors is also expanding its international footprint by franchises and joint ventures assembly operations in Kenya, Bangladesh, Ukraine, Russia, Senegal and South Africa. With over 3,000 engineers and scientists, the company's Engineering Research Centre, established in 1966, has enabled pioneering technologies and products. The company today has R&D centres in Pune, Jamshedpur, Lucknow, Dharwad in India, and in South Korea, Spain, and the UK. It was Tata Motors, which developed the first indigenously developed Light Commercial Vehicle, India's first Sports Utility Vehicle and, in 1998, the Tata Indica,
India's first fully indigenous passenger car. Within two years of launch, Tata Indica became India's largest selling car in its segment. In 2005, Tata Motors created a new segment by launching the Tata Ace, India's first indigenously developed mini-truck. In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, a development which signifies a first for the global automobile industry. Nano brings the comfort and safety of a car within the reach of thousands of families. The standard version has been priced at USD 2,200 or Rs.100, 000 (excluding VAT and transportation cost). The Tata Nano has been subsequently launched as planned, in India in March 2009.
3.5.2 Maruti Suzuki:Market Share: Passenger Vehicles 46.07% A license and Joint Venture agreement was signed between the government of India and Suzuki Motor Company (SMC) in Oct. 1982 to launch Maruti Udyog Limited (MUL). Today, MUL offers 11 models, including the Maruti 800, Omni, premium small car Zen, international brands Alto and WagonR, off roader Gypsy, mid size Esteem, luxury car Baleno, MPV, Versa, Swift, and Luxury SUV the Grand Vitara XL7. MULs dominant position in the Indian car market and its ability to satisfy its customers has made it the success it is today. MUL has been the leader in the Indian car market for two decades. Today, MUL holds about 50% of the total Indian market. For a record sixth year in a row, MUL was ranked highest in customer satisfaction, according to the J.D. Power Asia Pacific 2005 India Customer Satisfaction Index Study. In 2004, Business World ranked MUL among the countrys five most respected companies and the countrys most respected automobile company. As the dominant player in the Indian automobile market, MUL is focusing on entering new markets in India to increase market share. MUL recently added service businesses including sale and purchase of pre-owned cars, lease and fleet management service for corporate clients, Maruti Insurance and Maruti Finance. In April, MUL made large investments in a new plant that will produce diesel engines. Once this plant is operational, MUL plans to increase its role in the diesel segment of the market, which now accounts for about one-fifth of the total passenger car market in India.
Competition has become fierce in some Indian market segments, especially entry level compact cars. MULs major competitor in this market, Hyundai Motor Company, is aggressively expanding its sales and network across India. MUL has reduced the price of the Maruti 800 three times this year to keep this model cheaper than those offered by Hyundai. Even with the planned expansion to new Indian markets, MULs future success will depend greatly on how well it can compete with its new international competitors. Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan, is India's largest passenger car company, accounting for over 45% of the domestic car market. The company offers a complete range of cars from entry level Maruti-800 and Alto, to stylish hatchback Ritz, A star, Swift, Wagon-R, Estillo and sedans Dzire, SX4 and Sports Utility vehicle Grand Vitara. Since inception in 1983, Maruti Suzuki India has produced and sold over 10 million vehicles in India and exported over 500,000 units to Europe and other countries. The companys revenue for the fiscal 2010-2011 stood over Rs 375,224 million and Profits after Tax at over Rs. 22,886 million.
3.5.3 Hyundai:Market Share: Passenger Vehicles 14.15% Hyundai Motor India Limited is a wholly owned subsidiary of worlds fifth largest automobile company, Hyundai Motor Company, South Korea, and is the largest passenger car exporter. Hyundai Motor presently markets 49 variants of passenger cars across segments. These includes the Santro in the B segment, the i10, the premium hatchback i20 in the B+ segment, the Accent and the Verna in the C segment, the Sonata Transform in the E segment. Hyundai Motor currently exports cars to more than 110 countries across European Union, Africa, Middle East, Latin America and Asia. It has been the number one exporter of passenger car of the country for the sixth year in a row.
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In a little over a decade since Hyundai has been present in India, it has become the leading exporter of passenger cars with a market share of 66% of the total exports of passenger cars from India, making it a significant contributor to the Indian automobile industry. In 2009, in spite of a global slowdown, Hyundai Motor Indias exports grew by 10.7%. In 2010 Hyundai plans to add 10 new markets with Australia being the latest entrant to the list. The first shipment to Australia is of 500 units of the i20 and the total i20 exports to Australia are expected to be in the region of 15,000 per annum
3.5.4 Mahindra & Mahindra:Market Share: Commercial Vehicles 10.01%, Passenger Vehicles 6.50%, Three Wheelers 1.31% Mahindra & Mahindra is mainly engaged in the Multi Utility Vehicle and Three Wheeler segments directly. The company competes in the Light Commercial Vehicle segment through its joint venture subsidiary Mahindra Navistar Automotives Limited and in the passenger car segment through another joint venture subsidiary Mahindra Renault. In the year 2009, on the domestic sales front, the Company along with its subsidiaries sold a total of 220,213 vehicles (including 44,533 three wheelers, 8,603 Light Commercial Vehicles through Mahindra Navistar Automotives and 13,423 cars through Mahindra Renault), recording a growth of 0.6% over the previous year. The companys domestic Multi Utility Vehicle sales volumes increased by 3.3%, as against a decline of 7.4% for industry Multi Utility Vehicle sales. A record number of 153,653 Multi Utility Vehicles were sold in the domestic market in 2009 compared to 148,761 MUVs in the previous year. Hence, Mahindra & Mahindra further strengthened its domination of the domestic Multi Utility Vehicle sub-segment during the year, increasing its market share to 57.2% over the previous years market share of 51.3%. Mahindra & Mahindra is expanding its footprint in the overseas market. In 2009 the Xylo was launched in South Africa. The company formed a new joint venture Mahindra Automotive Australia Pvt. Limited, to focus on the Australian Market.
3.5.5 Ford Motor Company:DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT Page 47
Ford motor company (F) was founded in 1903 by automotive and industrial pioneer Henry Ford in Dearborn, Michigan. Being first to implement a moving assembly line for automotive manufacturing, Ford was able to more efficiently mass produce their products than their competitors. In 1908 the Model T was introduced and went on to sell over 15 million vehicles, firmly establishing Ford as the major player in the early automotive industry with 50% market share by the 1920s. The company went public in 1956 and since then has grown to be a significant presence in the global automotive market. The Ford Motor Company product portfolio includes cars, trucks, and SUVs from the following brands: Ford, Lincoln, Mercury, Mazda, Aston-Martin, Jaguar, Volvo, and Land Rover. In addition to its core automotive business, Ford has a finance division, a parts and service division, and they also currently own Hertz Corporation, the largest car rental business in the world. Relative to other massive automotive manufacturers in 2003, Ford was number two domestically and globally (behind GM), in terms of number of vehicles sold. Fords outlook is challenging. In the 3rd quarter of 2005, Ford posted a pre-tax profit loss of over $1.3 billion in their automotive operations, with a $1.1 billion loss in North America. The current losses for 2005 are due to a number of reasons: (1) rising costs of commodities, namely steel and energy, have increased manufacturing costs considerably; (2) ongoing and rising health care costs, particularly legacy benefits paid to retirees and their families; (3) bailing out major parts supplier Visteon from bankruptcy; and (4) vehicle sales lagging by 81,000 units compared to the same point in 2004, in spite of unprecedented Employee Pricing sales offered during summer 2005. Sales are especially lagging in the profitable SUV and truck markets where demand is dropping due to escalating gasoline prices. This loss is disappointing given the positive trend seen in net income for the past two years. The negative net income seen in 2002 was due to the costly safety recall of defective Firestone tires used on numerous Ford and Mercury trucks and SUVs. The volatility of Fords stock, in terms of its Beta rating, is in the neighbourhood of 1.6 which indicates that investing in their stock has fairly high risk. the long term viability of Ford Motor Company. Elements of company-wide restructuring have been announced and implementation begun. Part of the restructuring involves reducing personnel, mostly from white-collar positions. In
In the face of poor
performance and negative trends, significant steps must be taken in the near future to ensure
more long term restructuring, the company needs to shed over-capacity in manufacturing. Shedding over-capacity involves closing down and consolidating manufacturing facilities. These closures are prevented by agreements made with the United Auto Workers (UAW) through 2007. A key element in Fords success is its relationship with the UAW and ability to get concessions from the union. Concessions over healthcare costs, which cost upwards of $2000 per new vehicle sold, and plant consolidations are required for Ford to be leaner, more efficient, and more cost-effective in its business. In addition to organizational restructuring being vital to the future success of Ford, the company realizes the need to re-establish their market share, particularly in the U.S. domestic market. They have begun attempts to do this with the introduction of many new vehicles to freshen and invigorate their product line. Ford has announced plans to increase its hybrid vehicle production tenfold to 250,000 per year by 2010. This could be viewed as an attempt to position itself as the domestic leader in the rapidly growing hybrid market in the U.S. If the organizational restructuring comes off well and new product offerings are a hit with consumers Ford stands a good chance to see another 100 years as an industry leader.
3.5.6 Honda:Honda Motor Co. (HMC) was established by Soichiro Honda in 1946. It originally began producing motorcycles in the mid 20th century and began manufacturing automobiles (the Honda Civic) in 1972. After the original Civics inception, Honda produced many variants of this highly successful vehicle, such as the four-door sedan, wagons, hatchback, coupe, and more recently the hybrid. Honda currently has two automotive brands (Honda and Acura) and it produces over 20 other vehicle models, such as the Accord, Element, Insight, Odyssey Minivan, Pilot SUV, and Ridgeline Truck, in addition to producing motorcycles and power products. Since Honda began producing automobiles it has been a leader in producing fuel efficient and low emissions vehicles. In 1977 and 1983, Civic models ranked first in U.S. fuel-economy tests. Honda has also introduced hybrid vehicles such as the Insight, Civic, and Accord, in
1999, 2002, and 2004, respectively, with the 2006 Insight being the most fuel efficient car of 2006. Currently, Honda ranks sixth in sales within the automotive industry. They have overseas plants in over 12 countries including the U.K., Italy, Brazil, Taiwan, Indonesia, Malaysia, Thailand, Nigeria, U.S., and Canada. Honda has been increasing their production capacity worldwide in response to their steady growth in total sales over the last few years. From 2002 to 2003, Honda increased sales by 95,000 units, and from 2003 to 2004, sales increased by 259,000 units. With this growth in sales Honda has seen a commensurate increase in its revenues. In China, they saw approximately a 50% increase in sales from the fiscal years of 2003 to 2004, and they expect sales to keep increasing. In the future, Honda has stated that they will keep improving the fuel efficiency of all their vehicles. They will continue to expand their production capacity in Asia, due to the expected increases in demand in those regions. In the U.S., they plan on launching new models targeted to younger people to create a new base of loyal customers. Given Hondas past record on delivering high quality and fuel efficient vehicles, their strong position in the current market, their strategic direction for the next few years, and the rising costs of fuel worldwide, it is evident that Honda will have a strong presence in the automotive market in the future.
3.5.7 Nissan:Nissan Motor Co., Ltd. (NSANY) was established in 1933 in Japan, but its roots go back to 1914 when the first Datsun automobile was produced. Nissan first appeared on American shores in 1958 when a Datsun sedan was released on the U.S. market. Nissan furthered its influence on the American market in 1960 when Nissan Motor Corporation, U.S.A. was established in Gardena, California. In 1989, Nissan founded Infiniti, the luxury division of Nissan North America, Inc. The most recent major corporate event, however, came in 1999 with the formation of the Renault-Nissan alliance. While Renault, a French corporation, and Nissan remain independent corporations, both companies share a single joint strategy of profitable growth and a community of interests. More specifically, as a result of the alliance, Renault holds a 44% stake in Nissan, while Nissan owns a 15% stake in Renault. Excluding Renault, Nissan supports two major brands Nissan and Infiniti, and produces a total of 18 different vehicle models. Nissans stated mission is investment in the future.
Nissan has experienced a substantial recovery over the past six years. Carlos Ghosn became CEO of Nissan in 1999 after leading both Renault and Michelin U.S. through economic turnarounds. Before Ghosns arrival, Nissan had experienced seven years of losses. After posting a -$6.456 billion net income in 2000, Nissan has steadily recovered under Ghosns leadership such that in 2004 they earned $4.882 billion in net income. Since 2002, revenue has increased approximately 50% Sales have risen 22% over that same period. In 2004, Nissan was able to sell 3,388,000 automobiles. Nissan, including all consolidated subsidiaries, currently employs 123,748 workers in 18 countries on 4 continents. Nissans market share in the U.S. stands at around 6% as of 2004 while, in Japan, Nissan holds 19.3% of the market as of 2005. Along with Toyota, Nissan has recently become one of the most successful Japanese automobile companies in the U.S. The Infiniti brand has regularly been the recipient of industry awards Two . Nissan is not optimistic about the sales outlook in the U.S. or Chinese markets. Ghosn recently predicted that growth in the U.S. market is at the beginning of the end, and that the sales bonanza in China is a thing of the past. In the face of an industry-wide decrease in growth, Nissans outlook is not outstanding. However, good management and a strong global presence will serve Nissan well as the competition moves to emerging markets.
3.5.8 Toyota:Toyota was established as a public company in Japan in 1937. It entered the U.S. market in 1957, but only became successful with the introductions of the Corona in 1965 and the Corolla in 1968. By 1970, Toyota was the worlds fourth-largest carmaker and by 1975 had displaced Volkswagen as the U.S.s #1 auto importer. Toyota began auto production in the U.S. in 1984 through a joint venture with GM, and launched the successful Lexus line in the U.S. in 1989. Since then, Toyota has continued to grow steadily, becoming the third largest global automotive manufacturer as of 2003, with sales last year of 7.4 million vehicles. Unlike many other large auto manufacturers, Toyota carries only 4 brands: Toyota, Hino, Scion, and Lexus; it also has a majority interest in Daihatsu. Known for their quality and reliability, Toyota cars and light trucks such as the Camry (Best-selling passenger car in America, 2004), Corolla, Lexus LS330, Prius (Motor Trends Car of the Year, 2004), Tundra (Motor Trends Truck of Year, 2000), Tacoma (Motor Trends Truck of the Year, 2005), 4Runner, and Lexus RX300 (Motor Trends SUV of the Year, 1999) have been extremely successful both in the U.S. and abroad.
In the last few years, Toyota has been able to ride out the automotive storm, continuing to post impressive results despite the troubles that other companies have seen. In 2003, net income jumped almost 55%, reaching US$10.8B. And in 2004, both revenue and net profit increased slightly. Currently, Toyota holds a 6% profit margin. Toyotas success is based largely on its forward-thinking, innovative management style and its rigorous standards of quality. The Toyota Production System is a much-studied strategy of design and manufacturing which emphasizes streamlining and elimination of waste giving rise to the just-in-time and lean manufacturing movements and continuous error-checking and improvement. In addition, Toyota has repeatedly been ahead of the trend in investing in new technologies. Instead of focusing on reducing labour costs, Toyota has increasingly automated their production facilities. And with the release of the Prius in 1997, Toyota introduced the first mainstream hybrid vehicle, cashing in on the demand for fuel economy and reduced environmental impact. Like the Prius, the Scion line successfully identified and addressed a new consumer sector, a plan that Toyota will continue to follow. These strategies combine to give Toyota a significant sustainable competitive advantage. The results of all this are clear: in 2005, Toyota won a record-breaking 10 segment awards in J.D. Power and Associates Initial Quality Study, with Lexus carrying top honours for five years straight. And while 75% of Toyotas current market is in Japan and North America, it aims to reach markets in 140 countries and regions in the future. With new assembly facilities in Thailand, Indonesia, South Africa and Argentina, Toyota has more than 60 manufacturing facilities in 26 countries. This allows production in geographic proximity to Toyotas future target markets like Asia and South America. With expansion underway, an operation going well, innovative infrastructure and mindset, and well-targeted high quality products, Toyota is excellently positioned for future growth and success.
3.5.9 Volkswagen:The Volkswagen Automotive Group was formed in Germany in 1937 based on Ferdinand Porsches concept for a Volkswagen, which literally means a peoples car. Today, Volkswagen AG is the largest European car manufacturer. The company is divided into three main groups: the Volkswagen Group, which includes the brands Volkswagen, Skoda, Bentley and Bugatti; the Audi Group, which includes Audi, SEAT, and Lamborghini; and the
Commercial Vehicles Group. Together, these groups comprised 11.5% of the 2004 global automobile market. While Volkswagens revenues have remained relatively constant, by 2004 its net profit after taxes had fallen to less than one-third of the 2002 level due to increasing costs. For Volkswagens recent net profit history. Although sales in its largest markets of Western Europe and South America have remained constant or strengthened over the past year, sales outside of those markets have dropped. The majority of the losses stem from poor performance within the Volkswagen group and within the North American market. This has resulted in Volkswagens global market share falling 0.6% to 11.5%. As profits and market share are currently at their lowest values in the past five years, Volkswagen has reason to be concerned about the future of the company. Its returns on sales and equity have fallen to 0.8% and 3.0%, respectively. Both rates are worst among the ten companies considered in this report and are approximately half of the next worst ratios. While Volkswagen has blamed an unfavourable exchange rate and weakness in the most important markets for the latest downturn, the larger problem stems from Volkswagen being unable to provide the best peoples car since its competitors are providing similar quality at a reduced price. With this in mind, Volkswagen has begun a restructuring process aimed at making the company and its manufacturing capabilities more conducive to change. It also engaged in a cost-cutting campaign in 2005 including lay-offs and reworking of union deals. While these cuts will provide immediate relief, Volkswagen must find a way to provide a more cost-efficient car to become competitive in the long term. Volkswagen is also attempting to regain its prominence in the Chinese market. After being the first company to pursue that market, Volkswagen held a large share of the government and taxi sectors, which provided a consistent source of income. Due to weakening political ties and loss of market share to newer competition, Volkswagen has made an effort to strengthen joint ventures with Chinese manufacturers Shanghai Automotive Industry Corp. and First Automotive Works. If Volkswagen AG is to reverse its recent decline, the current restructuring must be successful in cutting costs and winning back some of the market share lost. If the North American sector can regain profitability and the rapidly growing Chinese market turns back to Volkswagen, the company will grow in the future.
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The above manufactures are the major players in the Indian auto industry and are divided into in different segments. As per the different segments of cars the cars are classified and as per the bank policy and the funding is done as per that only. People take up loan according to their requirement and their choice of manufactures and model of the car.
3.6 HDFC banks flow chart:-
HDFC BANK
Liability Department (Branch banking)
Assets department
Loans & advances Auto car loan Gold loan Loan against securities Two wheeler loan Commercial vehicle DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT Immovable loan Movable Loan against securities securities properties Commercial equipments loan Home loan Personal loan Page loan Business54 Education loan Secured loans Unsecured loans
3.7 MEANING OF LOAN & PROCEDURE FOLLOWED AT HDFC BANK:Loan is a method of lending under which bank gives credit to a borrower for a specific purpose. Loan are promises for future payment, they have to be repaid in periods beyond a year and are therefore long-term liabilities. In other words when a banker makes a advance in a lump-sum which cannot be paid wholly or partly and which the customer has permission to withdraw subsequently, it is called a loan. Many times a borrower needs fund for fixed assets or non repetitive type of activities and thus, seeks money from the bank which is withdrawn in one lump sum. The loan amount is normally repaid in installments. Loan may be short-term, medium-term or long-term. Loans and advances are classified in to secured and unsecured. Secured Loan or Advance: Secured loan or advance means a Loan or Advance made on the security of assets. The market value of which is not at any time less than the amount of such loan or advance. Unsecured Loan or Advance: -
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An unsecured loan or advances means a Loan or advance not so secured. A partly covered loan or advance is partly covered by the security of assets, the market value of such securities being less than the amount that has been lend or outstanding at any time. In HDFC Bank, Loans and Advances department is divided in three parts as follows:The loan procedure of the new car loans at the HDFC bank:1. Loan application department.
Procedure for any loan starts from this department. All the applicants have to submit their application form supported by the required document in this department. After that sales executive will check the form and document and will make the proposal. The sales executives of the banks will collect all the required documents and then the application will be moved forward to the RIC department (risk intelligence control) department of the bank for the verification of the documents. All the legal formalities like making legal mortgage deed, loan agreement, hypothecation agreement, share linking, lien & set-off, etc. documents are being made by this dept. After the RIC department then comes the credit department. The credit department will see that whether the person is eligible for the loan or not and upto what amount the loan should be sanctioned for the applicant. Than after the file of the applicant is moved to operations department means the disbursement department for the disbursement of the loan. All the legal formalities like making legal mortgage deed, loan agreement, hypothecation agreement, share linking, lien & set-off, etc. documents are being made by this dept. 2. Loan disbursement department. Once the loan is sanctioned the file is moved from RIC to operations department means the disbursement department, in this department the disbursement activity takes place. Officer in this department will take care of all the security of the loan given by bank and will keep the entire original document in their record room. After completion of all the procedure, the loan will disburse to the borrower. And after that the branch will take care of the collection of installment and interest on loan.
3. Recovery Department. DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT Page 56
The Recovery Department of the bank is indulged in the work of managing the overdue advances of the bank. Such advances of the bank are also sometimes called as the Non Performing Assets (NPAs). This department is very important from the point of view of bank.
3.8 Auto Car Loan Policy at HDFC Bank: Eligible Borrower Segments for Loan:1) Salaried Individuals 2) Self Employed Individuals 3) Sole Proprietorships 4) Partnership Firms 5) Hindu Undivided Families (HUFs) 6) Private & Public Ltd Co. 7) Joint ventures Conditions & Credit Criteria for Loan:Common Criteria:DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT Page 57
Conditions 1) Minimum age
Credit Criteria Salaried 21 years Self employed 30 years
2) Maximum age
Salaried 60 years Self employed 65 years
3) Customer personal verification 4) PAN no.
To be done at the office and residence also. Mandatory or Latest 2 years of income tax return.
Mandatory Documents:Documents 1) Application form 2) Know your customer (KYC) 3) Sign verification proof 4) Others Borrower Segment Required for all the segments of borrower. Required for salaried & self employed. If partner, director, Karta or the trustee is co applicant. Required for all segments of borrower. MOA for Pvt. Ltd and Ltd Co. Partnership deed for partnership. Trust deed for trust.
1) Loan to Vehicle (LTV):o LTV is based on Ex- showroom price. o Maximum LTV for Tier 3 model under any program will be upto 90% or upto 95% including suraksha kavach premium account.
o For any other model maximum LTV can be upto 100% including suraksha kavach. 2) LTV Downsizing:o For loan amount below 5 lacs, there should not be any downsizing. o Definition of downsizing = approved loan amount < eligibility. o Eligibility = Lower of (income based LTV, product cap, model based LTV + template LTV deviation allowed) 3) Average Quarterly Balance (AQB):This is to find out whether the customer will be able to pay the EMI or not by looking at balance maintained in the first 15 dates of the month in the customers bank account. The AQB is to be maintained 1.5 times of EMI.
4) Customer personal verification (CPV):Customer personal verification is compulsory for every customer who comes for loan in the bank. Customers identity proof, address proof and age proof are must for getting the loan. Residence verification Office verification Tele verification Residence and office Directory check
Features and benefits of new car loan:o
Covers the widest range of cars sand multi- utility vehicles in India.
o Avail 100% finance on your favourite car.

o Flexible repayment options ranging from 12 to 84 months.

o
Borrow upto 3 times your annual salary (For salaried professionals) and 6 times your annual income (For self employed professionals).
o Speedy processing within 48 hours. o Repayment with easy EMIs o Attractive interest rates
o
Hassle free documentation
Customer Privileges
o o
If you are an HDFC Bank account holder, we have special rates for you. If you have had a Preferred Account or a Corporate Salary Account with HDFC Bank for more than six months, you can get fast approvals on your loans with minimum documentation.
If you are an existing HDFC Bank Car Loan customer with a clear repayment of 12 months or more we can Top-Up your car loan to the extent of the original loan value.
1) Attractive car loan plans:Auto Loan Takeover Plan:If you are a salaried individual holding any of the credit cards mentioned below, your loan
gets processed faster. Requirements: Facility is available to only HDFC bank account holders (CASA). All terms and conditions applicable for the used car product are applicable for the Loan take over product. Minimum 9 month old loan with any approved Financier with clear repayment track record. 2) Advantage platinum Credit Card Plan:If you are a salaried individual holding any of the credit cards mentioned below, your loan gets processed faster
HDFC Bank International Credit Card Citibank Gold Citibank Diners HSBC Gold ANZ Grindlays Gold American Express Gold Card American Express Charge Card Standard Chartered Gold Requirements: Your card has to be atleast one year old.

You need to submit the last two billing statements. Small cars, normal funding up to three years. Funding on premium cars restricted to 70% under this plan. The plan does not include multi-utility vehicles. Contract copy and salary slip of NRI. Endorsement on passport for last 3 years. Proof of ownership of property. Post-dated cheques must be from the resident account of the borrower.
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3) No Income-Document Loan Plan:-
Now, you can get a car loan without proof of income. Under this scheme, you get the loan amount up to 60% of the car invoice value. The tenure of loan can be a maximum of 3 years
4) 100% Loan Plan with Fixed Deposit Lien:
This allows you to take a loan against your deposit at HDFC Bank. You can get a loan for 100% of the invoice value amount with the required margin Placed as a fixed deposit in HDFC bank. Lien is marked on the specified deposit. Installments can be paid separately or out of The deposit (if deposit is large enough).
5) NRI Loans:-
NRIs can avail of new car loans from HDFC Bank for the use of the vehicles by their relatives in India. Additional documents required are as follows : Contract copy and salary slip of NRI. Endorsement on passport for last 3 years. Proof of ownership of property. Post-dated cheques must be from the resident account of the borrower.
6) 7)
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3.8 THE RATE CHART:

Open Mkt + HBL Segment A Segment / MUVS / Indica Dle / nano B Segment C Segment C+ Segment D Segment D+ Segment Payout 12-23 16.25% 16.25% 16.25% 16.25% 16.25% 16.25% 0.00% Tenor ( TOP 20 CITIES ) 24-35 15.25% 14.75% 14.75% 14.75% 14.50% 14.25% 1.00% 36-60 14.25% 13.50% 13.00% 12.50% 12.25% 12.00% Normal >60 16.25% 16.25% 16.25% 16.25% 16.25% 16.25% Normal
BEFORE 20TH JUNE LOGIN Volume (INR) Upto 2.5 Lacs 2.51 4.00 Lacs 4.01 to 5 Lacs 5.01 10 Lacs Over 10 Lacs PF(INR) 2325 3350 3800 3950 4275 PF(INR) 1163 1675 1900 1975 2138
AFTER 20TH JUNE LOGIN PF(INR) 2625 3650 4100 4450 4950 PF(INR) 1313 1825 2050 2225 2475
A/MUV Maruti 800 Maruti Omni Maruti Versa
B Maruti Alto Maruti A-Star Maruti EECO
C Maruti Swift Maruti Swift Dzire Maruti SX4 FIAT LINEA
Chevrolet Tavera Maruti Estilo
C+ TOYOTA COROLLA ALTIS VW JETTA HONDA CIVIC MITSUBISHI LANCER
D Maruti Vitara CHEVROLET CAPTIVA FIAT 500 FORD ENDEAVOUR AUDI
D+
BENTLEY BMW JAGUAR
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Mahindra Bolero
Maruti Ritz
FORD FIESTA FORD FIGO
Mahindra Scorpio Maruti Wagaon R Tata Sumo Tata Safari Indica DLE Indica Xeta
MITSUBISHI CEDIA CHEVROLET CRUZE SKODA LAURA SKODA OCTAVIA TATA ARIA
HONDA ACCORD HYUNDAI TUSCON MITSUBISHI OUTLANDER MITSUBISHI PAJERO NISSAN TEANA NISSAN X TRAIL TOYOTA CAMRY VOLVO HONDA CR V SKODA SUPERB SKODA YETI
Chevrolet Aveo U-va FORD FUSION Chevrolet Beat Chevrolet Spark Fiat Palio Fiat Punto Ford Ikon Hyundai I-10 Hyundai Getz Hyundai Santro Mahindra Logan Indica Vista Tata Indigo HODAN CITY HONDA JAZZ HYUNDAI ACCENT HYUNDAI I20 HYUNDAI VERNA MAHINDRA XYLO TATA MANZA TOYOTA INNOVA VW POLO CHEVROLET AVEO CHEVROLET OPTRA SKODA FABIA VW VENTO
LAND ROVER DISCOVERY LAND ROVER FREELANDER LAND ROVER RANGE ROVER MERCEDEZ BENZ MITSUBISHI MONTERO PORSCHE TOYOTA FORTUNER TOYOTA PRADO VW BEETLE VW PASSAT VW TOUAREG
The above rate chart is for the top 20 cities and it for the month of June. The rates vary from month to month and even the terms and conditions of it. The rates shown in this chart has two parts i.e. the file which comes for login before 20th June, the processing fees (PF) is lower as compared to after 20th June. Tenor:It is the time period for which the loan is taken on the vehicle. Mostly people prefer 36 months i.e. three years or 60 months i.e. five years time period. The rate is also lower in all the segments in this period. Segment:In auto industry the classification of cars is done segment wise. Because of different segments the classification of the cars becomes easy and so the funding. Segment A is MUVs (multi utility vehicles) these kinds of vehicles are normally used for taxi purposes and so these car falls under TIER 3 category which means it is most risky to fund these cars and so the interest rate is also for this kind of cars. The maximum amount of funding done in this
segment is upto 75% of the EX- showroom price. E.g. Indica, Scorpio, Tata sumo etc. The cars which fall under segment B are those car whose price range is from 4 lacs to 7 lacs and these kind of cars are known as compact cars. Middle class people prefer this segment most. Segment B cars fall under the category of TIER 2 so they are less risky than that of MUVs and so the percentage of funding also increases The C segment cars are those cars which fall in the range of 7 lacs to 10 lacs and the higher middle class mostly prefer this cars. These segment car are called mid size cars. These cars also falls under TIER 2 category and maximum funding can be done in these category is upto 90%. Segment C+ is called the executive car segment. These cars fall above the range of 10 lacs. These cars fall under the TIER 1 category and the funding of the car is done upto 90% of the EX- showroom price of the vehicle.
The D segment cars are premium cars and SUVs (sport utility vehicles). The maximum funding in this segment can be done upto 90%. The D+ segment cars are the luxury cars. All these cars are the imported cars. This segment falls under the TIER 1. Processing fees:This amount is collected from the customers for the processing of the loan file. This amount can be waivered. Stamp charges:This amount is also collected from the customers and it is 0.25% of the amount funded to the customer on the vehicle. This amount is also compulsorily paid by the customers to the bank. This amount goes to the government. Franking charges:-
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This amount is also collected from the customers and this amount is compulsory to be paid by the customer to the bank and the amount paid by them is Rs. 200. This amount also goes to the charges are government. Payout ratio:It is the amount given to the channel from whom the sourcing is done. The minimum ratio given to the channel is 1% and the maximum ratio is 2% but in festive season some special amount is also given.
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CHAPTER-4
ACTIVITES CARRIED OUT AT HDFC BANK
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During the period of two months the activities learned at HDFC bank in Auto car loan department are as under:1) Learned about the system used for banking. The system used for branch banking is
FINWARE. From FINWARE system one can know any details of the account in the HDFC bank.
2) Learned how the branch banking works and what the different departments of the branch
banking are. For learning the branch banking, visited Alkapuri branch, Old padra branch, Karelibaug branch and Raopura branch. 3) Learned what work is done at the welcome desk, what the Personal Banker (PB), the Relationship Manager (RM), the Authorised Personal Banker and the branch manager does and how do they co- ordinate with each other. 4) Visited Axis bank, Kotak bank, ICICI bank and SBI to know the auto car loans schemes of different banks and to know the difference between the schemes of other banks and HDFC bank.
5) Learned how to make the login and disbursement report on daily basis of auto car loans. 6) Learned how to make the login and disbursement report channel wise on daily basis of
auto car loans. 7) Learned how to make the login and disbursement report location wise on daily basis of auto car loans. 8) Learned how to make the manufacturer wise sales report on the monthly basis of auto car loans.
9) Learned how to make the dealer sales report on the monthly basis of auto car loans.
10) Learned how to make the branch target report versus achievements of auto car loans. 11) Learned how to make the PB and RM target report versus achievements of the auto car loans.
12)
Learned how to make the lead generated report and the lead achievement report of the
auto car loans.

13)
Learned how to make branch direct reporting (BDR) login and disbursement report
of the auto car loans.

14)
Learned the LOS (Loan originating system). In this LOS system one can know any
status of the file. In this system one can know whether the file is in underwriting or is it approved or whether it is rejected. One can know any status of the file of the applicant or the customer from login of the file to the disbursement of the file. 15) Learned the FINNONE system. This system is for the internal repayment of the loan. From this system one can know whether the applicant or the customer has bounced any of the EMIs and any past records of any kind of loan.
16)
Learned how to do collection of RC book and insurance policy of the vehicle by
calling the customers as these documents are needed by the bank for their records.
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CHAPTER-5
RESEARCH METHODOLOGY
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5.1 Problem Statement:

This research has been conducted to study the THE DELINQUENCY DATA OF NEW CAR LOANS, STUDY DONE AT HDFC BANK, BARODA.
5.2 Research Objectives:

There is an objective behind any research. Without objective there is no meaning of research. The purpose of research is to discover answers to questions through the application of scientific procedures. The main aim of research is to find out the truth which is hidden and which has not been discovered yet. As each research has some or the other objectives the following are the objectives of this research: Primary Objectives:
To know the reasons of delinquency at HDFC BANK.
Secondary Objectives:
To understand what is delinquency and what are the underlying reasons for the emergence of its. To understand the impacts of delinquency on the operation bank. To know what steps are taken by the bank to reduce the delinquency percentage. To suggest some measures to lower the level of delinquency at the bank.
5.3 Research Design:

A research design specifies the methods and procedures for conducting a particular study. In this research I have use following research methods. Exploratory research:An exploratory research focuses on the discovery of ideas and is generally based on secondary data.
5.4 Data Collection:

Data collection is the curious elements of research study the research in depend on what data you are going to collect on your research. 1) Primary Data: The data, which are collected for the first time, directly from the respondents to the base of knowledge & belief of the research, are called primary data. The normal procedure is to interview some people individually or in a group to get a sense of how people feel about the topic 2) Secondary Data: When data are collected & compiled in a published nature, it is called secondary data. So far as this research is concerned, Internet & many magazines and the brochures have been referred as secondary data and the data given by the bank for the study purpose is the main sources of secondary data. The project is completed by undertaking the secondary data. Bank journals, internal records of the bank and bank website were the major sources for collecting the secondary data as this research is based on secondary data.
5.5 Limitation of Research:

Personal Bias: Some respondents may have had personal bias due to which they may not have given the correct information and due to which the right conclusion may not be have been derived at. Area: The result may have varied, if it was conducted somewhere else and Since the Indian banking sector is so wide so it was not possible for me to cover all the private banks of the Indian banking sector. The findings may not be applicable to all the banks. Time Limit: The time limit taken for conducting the research was very less it could also be one of the limitations of the study. Bases of study: Since my study is based on the secondary data, the practical operations as related to the delinquency, which are adopted by the bank might not be learnt thoroughly
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CHAPTER-6
ANALYSIS OF THE DATA
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6.1 RESEARCH ON DELIQUENCY OF AUTO CAR LOANS CUSTOMERS AT HDFC BANK:In auto car loan the delinquency means the percentage of defaulters against the total customers in a month. The delinquency data is calculated in percentage. Delinquency is calculated on the basis of 30+ days and 90+ days. If the customers bounce their first EMI they fall into 30+ days defaulters list and if they are unable to pay their EMI for more than three months then they fall under 90+ days defaulters list. It is the responsibility of the sales department to bring the first EMI of the customer where as if the customer falls in 90+ days defaulters list then it is the responsibility of the collection department to get the recovery done. The sales department and the collection department keeps the follow up of the customer so that the customer pay their EMI. The collection department tries and contact the 30+ defaulters list anyhow and after contacting the customer the collection department people compel them to pay their EMI so that it is not a loss to the bank and if the customer is still stiff not pay their EMI than the collection department people dont have any option but to take back their vehicle as it is under the hypothecation of the bank as it is the property of the bank and this is the last option left for the bank, so that they can recover their losses.
Analysis and interpretation of the delinquency data of last 5 months in India

JANUARY
INTERPRETATION:-
The above bar chart explains the delinquency of the defaulters in various regions in the month of January. As it is seen in the chart the north region is having the highest delinquency percentage i.e 3.66% and 1.46% in 30+ and 90+ days respectively , the reason for this is it that the region is big as compared to the others regions and the quality of people matters in that. Most of people who take loan they are unaware of post loan procedure and so they fall in defaulters list. And as compared to the other regions south region is having the lowest delinquency i.e 1.85% and 0.56% in 30 + and 90+ days, the reason behind that is the people over there are educated and they are aware of their EMI and the collection department in south region is more effective as compared to the other regions. In east region the percentage of delinquency is also high i.e 3.12% and 1.21% in 30+ and 90+ days respectively because of unawareness of people. In west region the collection department is also effective and the people are less likely to default so the percentage of delinquency is also low i.e 1.96% and 0.63% in 30+ and 90+ days respectively.
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4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 1.87% 2.83%
3.64%
1.91% 1.55% 1.24% 0.68% 0.67%
30+ EAST WEST NORTH SOUTH
90+
FEBRUARY
INTERPRETATION:-
The above bar chart explains the delinquency of the defaulters in various regions in the month of February. As it is seen in the chart the north region is having the highest delinquency percentage i.e 3.64% and 1.55% in 30+ and 90+ days respectively , the reason for this is it that the region is big as compared to the others regions and the quality of people matters in that. Most of people who take loan they are unaware of post loan procedure and so they fall in defaulters list. And as compared to the other regions south region is having the lowest delinquency i.e 1.91% and 0.67% in 30 + and 90+ days, the reason behind that is the people over there are educated and they are aware of their EMI and the collection department in south region is more effective as compared to the other regions. In east region the percentage of delinquency is also high i.e 2.83% and 1.24% in 30+ and 90+ days respectively because of unawareness of people. In west region the collection department is also effective and the people are less likely to default so the percentage of delinquency is also low i.e 1.87% and 0.68% in 30+ and 90+ days respectively.
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MARCH
INTERPRETATION:-
The above bar chart explains the delinquency of the defaulters in various regions in the month of March. As it is seen in the chart the north region is having the highest delinquency percentage i.e 3.15% and 1.23% in 30+ and 90+ days respectively , the reason for this is it that the region is big as compared to the others regions and the quality of people matters in that. Most of people who take loan they are unaware of post loan procedure and so they fall in defaulters list. And as compared to the other regions south region is having the lowest delinquency i.e 1.65% and 0.55% in 30 + and 90+ days, the reason behind that is the people over there are educated and they are aware of their EMI and the collection department in south region is more effective as compared to the other regions. In east region the percentage of delinquency is also high i.e 2.30% and 0.99% in 30+ and 90+ days respectively because of unawareness of people. In west region the collection department is also effective and the people are less likely to default so the percentage of delinquency is also low i.e 1.51% and 0.63% in 30+ and 90+ days respectively.
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APRIL
INTERPRETATION:-
The above bar chart explains the delinquency of the defaulters in various regions in the month of April. As it is seen in the chart the north region is having the highest delinquency percentage i.e 3.31% and 1.41% in 30+ and 90+ days respectively , the reason for this is it that the region is big as compared to the others regions and the quality of people matters in that. Most of people who take loan they are unaware of post loan procedure and so they fall in defaulters list. And as compared to the other regions south region is having the lowest delinquency i.e 1.96% and 0.56% in 30 + and 90+ days, the reason behind that is the people over there are educated and they are aware of their EMI and the collection department in south region is more effective as compared to the other regions. In east region the percentage of delinquency is also high i.e 2.81% and 1.02% in 30+ and 90+ days respectively because of unawareness of people. In west region the collection department is also effective and the people are less likely to default so the percentage of delinquency is also low i.e 1.68% and 0.66% in 30+ and 90+ days respectively.
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MAY
INTERPRETATION:-
The above bar chart explains the delinquency of the defaulters in various regions in the month of May. As it is seen in the chart the north region is having the highest delinquency percentage i.e 3.12% and 1.22% in 30+ and 90+ days respectively , the reason for this is it that the region is big as compared to the others regions and the quality of people matters in that. Most of people who take loan they are unaware of post loan procedure and so they fall in defaulters list. And as compared to the other regions south region is having the lowest delinquency i.e 1.91% and 0.58% in 30 + and 90+ days, the reason behind that is the people over there are educated and they are aware of their EMI and the collection department in south region is more effective as compared to the other regions. In east region the percentage of delinquency is also high i.e 2.32% and 0.89% in 30+ and 90+ days respectively because of unawareness of people. In west region the collection department is also effective and the people are less likely to default so the percentage of delinquency is also low i.e 1.70% and 0.59% in 30+ and 90+ days respectively.
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CONCLUSION AND SUGGESTIONS It can be concluded that delinquency is not confined to alone auto car loans but also to the other kinds of loans and advances. The following are the findings of the study and the reasons for the delinquency in the bank. 1) In 30+ days the delinquency is more because the customers take loans and there is possibility that they are unable to pay their first EMI because of unavailability of the money.
2) And it is also possible that the customer might not be willing to pay the money so it
is one of the reasons of default in the bank. 3) There is also a possibility that the customers cheques are not swapped on time and because of these reason they fall into the defaulters list
4) Proper follow up by the bank people is also one of the reasons of delinquency.
5) At times the customers forget to maintain balance in the bank account in which loan is going on because the customer might have several accounts in other banks. 6) It is possible that the customer is not aware of the EMI cycle. 7) Market crisis is also one of the reasons of the delinquency.
8) Family issues are also one of the reasons of delinquency because of unavailability
of the money. Following suggestions can be given to reduce the level of delinquency in the bank:
1) Professional people should be recruited and associated at all levels of credit
department. They can be CAs, lawyers, MBAs, banking experts etc.

2) The credit people should properly check and verify all the documents of the
customers before giving the loan to the customers and without documents, the loan should not be given. 3) Proper survey of difficulties of customers should be made and adequate assistance should be accordingly provided. 4) Banks and financial Institutions together with Central Government should establish more courts for quicker remedies.
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5) Recovery agents should be appointed to collect on daily basis from transport operators, retail traders etc. 6) Bank branches in various sectors should be given more autonomy so that they can take quick and timely decisions regarding NPA accounts. 7) Collection of interest from creditors should be on monthly basis instead of quarterly basis. 8) Banking staff should be well trained to properly monitor creditworthiness of the borrowers. 9) Political interference should be eliminated in disbursement of loans and advances.
Page 82
Bibliography
http://finance.indiamart.com/investmentin_india/hdfc_bank.html www.hdfcbank.com/personal/prd_glance.htm www.hdfcbank.com/personal/loans/new_car_loans/new_car.htm www.ibef.org/download/automotive-25068 .pdf www.wikipedia.org/wiki/automotive_industry_in_india www.wikipedia.org/wiki/history_oftheautomotive www.wsj.com/mde/public/page/2_3022-autosales.html http://www.hdfcbank.com/aboutus/awards/default.htm#%23 http://www.rbi.org.in/scripts/NotificationUser.aspx
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Study of Auto Car Loans at HDFC Bank

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Study of Auto Car Loans at HDFC Bank

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A project Report on "STUDY OF AUTO CAR LOAN AT HDFC BANK

Submitted to DR. MANISH SIDDHPURIA Submitted by NITYA CHOWDHARY (13)

DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT

The content that I have provided is true to the best of my knowledge.

DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT

DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT

DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT

DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT

DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT

1.1 MEANING AND DEFINITION:

1.2 ORIGIN OF WORD BANK:

DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT

1.3 ORIGIN OF BANKING:

1.4 INTRODUCTION OF RESERVE BANK OF INDIA:-

DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT

DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT

1.5 BANKING SYSTEM IN INDIA:DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT Page 12

1.5.1 A HISTORICAL PERSPECTIVE:

1.5.2 FUNCTIONS OF BANKS:

1.7 BANKING STRUCTURE IN INDIA:(A) Scheduled Commercial Banks:-

Public sector Banks (27)

Private sector Banks (29)

Foreign Banks in India (31)

Regional Rural Bank (133)

DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT

Old private banks New private banks

DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT

DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT

DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT

DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT

2.2 PRODUCT SCOPE

DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT

FOREX SERVICES - Product & Services - Trade services

PAYMENT SERVICES - Net Safe - Prepaid Refill

DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT

- E-Monies Electronic Funds Transfer - Excise & Service Tax Payment

-ATM -Phone Banking -Email Statements -Branch Network

2.3 AWARDS AND ACHEIVEMENTS OF HDFC BANK:

2.4 SEGMENT OF HDFC BANK:2.4.1 RETAIL BANKING SERVICES:

2.4.2 WHOLESALE BANKING SERVICES:

2.4.3 TREASURY SERVICES:

DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT

DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT

DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT

DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT

DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT

DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT

Stable Economic Policies Adopted by Successive Governments:

DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT

DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT

DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT

3.5.5 Ford Motor Company:DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT Page 47

In the face of poor

DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT

3.6 HDFC banks flow chart:-

Liability Department (Branch banking)

DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT

Conditions 1) Minimum age

Credit Criteria Salaried 21 years Self employed 30 years

Salaried 60 years Self employed 65 years

3) Customer personal verification 4) PAN no.

Features and benefits of new car loan:o