SUMMER TRAINING PROJECT REPORT

On
CREDIT FACILITY BY HDFC BANK

Towards partial fulfilment of

Integrated Master of Business Administration (IMBA)
School of Management, Babu Banarasi Das University, Lucknow

Submitted by
Mohd Azeem
VII Semester
Roll No-1130675045

Under Supervision of
Vishnu Pratap Singh Chauhan
Assistant Vice President

Session 2016-2017
School of Management

Babu Banarasi Das University

Sector I, Dr. Akhilesh Das Nagar, Faizabad Road, Lucknow (U.P.) India
 ACKNOWLEDGMENT

The internship opportunity I had with HDFC Bank, Alambagh branch, Lucknow was a great
chance for learning and professional development. Therefore, I consider myself as a very lucky
individual as I was provided with an opportunity to be a part of it. I am also grateful for having a
chance to meet so many wonderful people and professionals who led me though this internship
period.

Bearing in mind previous I am using this opportunity to express my deepest gratitude and special
thanks to the Branch Manager Mr Vishnu Pratap Singh Chauhan of HDFC Bank, Alambagh
Branch, Lucknow who in spite of being extraordinarily busy with his duties, took time out to
hear, guide and keep me on the correct path and allowing me to carry out my project at their
esteemed organization and extending during the training.

I acknowledge my gratitude to respected faculty Ms.Bhavnapandey

MOHD AZEEM
 DECLARATION

I do hereby declare that the research report titled CREDIT FACILITY BY THE HDFC
BANK submitted by me in partial fulfilment of the requirement of Integrated Master of
Business Administration, exclusively prepared and conceptualized by me and is not submitted to
any other Institution or University or published anywhere before for the reward of any
Degree/Diploma/Certificate. It is the Original work of mine and has not been obtained from any
other part.

MOHD AZEEM

IMBA (7 thSEM )
TABLE OF CONTENT

Chapters Content Page No.

Part I
1. Introduction of Banking
1.1 Meaning and Definition
1.2Banking structure in India
1.3 Indian Banking System
1.4Indian banking industry analysis
2. Introduction to credit facility
2.1 Meaning and Definition

3. Company Profile
3.1History of HDFC Bank
3.2 Mission, Vision and Objectives
3.3 Management at HDFC Bank
3.4 Business Profile
3.5 Ratings/Awards
3.6 Products of HDFC Bank
3.7 payment services
3.8SWOT analysis

Part II
4. Objectives of the study
5. Literature Review
6. Research Methodology
6.1 Research Design
6.2Research Type
6.3 Sampling Design
6.4 Sources of Data Collection
6.5 Data Collection Tools
6.6 Methods of Data Collection
Part III
7. Data Analysis & Interpretations
8. Findings
9. Conclusion
10. Suggestions
11. Limitations
12. Bibliography
13. Appendix
 INTRODUCTION

INTRODUCTION TO BANKING INDUSTRY

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 or otherwise and withdraw by cheque, draft or
otherwise."

-Banking Companies (Regulation) Act,1949 The concise oxford dictionary has defined a
bank as "Establishment for custody of money which it pays out on customers order."
In fact this is the function which the bank performed when banking originated.

"Banking in the most general sense, is meant the business of receiving, 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

A Bank:

Accept deposits of money from public.

Pays interest on money deposited with it.
Lends or invests money.
 Repays the amount on demand,
Allow the money deposited to be withdrawnby cheque or draft.

ORIGIN OF WORD BANK:

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 banchibancheri" According to
another viewpoint banking is derived from German word "Branch" which mean heap or mound.
In England, the issue of paper money by the government was referred to as a raising a bank.

ORIGIN OF BANKING:

Its origin in the simplest form 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 in to financial
institutions that accepts deposits and make loans i.e., modern commercial banks.

The history of banking in each country runs in lines with the development of trade and industry,
and with the level of political confidence and stability. The ancient Romans developed an
advanced banking system to serve their vast trade network, which extended throughout Europe,
Asia and Africa.Banking is nearly as old as civilization. The history of banking could be said to
have started with the appearance of money. The first record of minted metal coins was in
Mesopotamia in about 2500B.C. the first European banknotes, which was handwritten appeared
in1661, in Sweden. Cheque and printed paper money appeared in the 1700s and 1800s, with
many banks created to deal with increasing trade.

Modern banking began in Venice. The word bank comes from the Italian word ban co,
meaning bench, because moneylenders worked on benches in market places. The bank of Venice
was established in 1171 to help the government raise finance for a war.

At the same time, in England merchant started to ask goldsmiths to hold gold and silver in their
safes in return for a fee. Receipts given to the Merchant were sometimes used to buy or sell, with
the metal itself staying under lock and key. The goldsmith realized that they could lend out some
of the gold and silver that they had and charge interest, as not all of the merchants would ask for
the gold and silver back at the same time. Eventually, instead of charging the merchants, the
goldsmiths paid them to deposit their gold and silver.

The bank of England was formed in 1694 to borrow money from the public for the government
to finance the war of Augsburg against France. By 1709, goldsmith were using bank of England
notes of their own receipts.

New technology transformed the banking industry in the 1900s round the world, banks merged
into larger and fewer groups and expanded into other country.

Banks are in the business of accepting deposits for the purpose of lending. They act as financial
intermediaries between depositors with surplus funds and borrowers who are in need of funds.
Banks occupy a pivotal place in the payment system for government, business and households.
Thus, they play a vital role in the economic and financial life of country.

The banking sector in the country has undergone a metamorphic persuade the policies of interest
rate deregulation and financial liberalization in a bid to supplement the government policies of
economic liberalization. The most important change that has overtaken the nations banking
industry, relates to the fact that the competitive forces are sought to be introduced consciously in
the financial service sector wide to facilitate the entry of foreign banks and new private sector
banks.

After the nationalization of 14 commercial banks in the year 1969, no new private banks were
licensed by RBI in the country though there was no legal bank on the entry of private sector
banks. The narasimham committee report of 1991, has envisaged a larger for private sector
banks.

HISTORICAL OF BANKING IN INDIA

Without a sound and effective banking system, India 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 Indias 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, India banking system has reached even to remote corners of the
country. This is one of the main reasons of Indias growth process.

Not long ago, an account holder had to wait for hours at the bank counters for getting a draft 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
dial a pizza. Money has become the order of the day.

The first bank in India, though conservative, was established in 1786. From 1786 till today, the
journey of India banking system can be segregated into three distinct phases. They are as
mentioned below:

Early phase from 1786 to 1969 of Indian banks

Nationalization of India banks and up to 1991 prior to India banking sector reforms.

There are three different phases in the history of banking in India

i) Pre-Nationalization Era.
ii) Nationalization stage.
iii) Post Liberalization Era.

PHASE I: Pre-Nationalization Era

In India the business of banking and credit was practices even in very early times. The remittance
of money through Hundies, an indigenous credit instrument, was very popular. The hundies were
issued by bankers known as Shroffs, Sahukars, Shahu or Mahajans in different parts of the
country.

The modern type of banking, however, was developed by the agency house of Calcutta and
Bombay after the establishment of rule by the East India Company in 18th and 19th centuries.

During the early part of the 19th century, ht volume of foreign trade was relatively small.
Later on as the trade expanded, the need for banks of the European type was felt and the
government of the east India Company took interest in having its own bank. The government of
Bengal took the initiative and the first presidency bank, the bank of Calcutta (bank of Bengal)
was established in 1840. In 1840, the bank of Bombay and in 1843, the bank of Madras also set
up.

The general bank of India was setup in the year 1786. Next bank of Hindustan and Bengal bank .
The east India Company established bank of Bengal (1809), bank of Bombay (1840) and bank of
madras (1843) as independent units and called it presidency banks. These three banks were
amalgamated in 1920 and imperial bank of India was established which started as private banks.

These three banks also known as Presidency Bank. The presidency banks had their branches in
important trading centers but mostly lacked in uniformity in their operational policies. In 1899,
the government proposed to amalgamate these three banks into one so that it could also functions
as a obtaining during world war period (1914-1918) emphasizes the need for a unified banking
institution, as a result of which the imperial bank was set up in 1921. The imperial bank of India
acted like a central bank and as a banker for other banks.

In 1865 Allahabad bank was established and first time exclusive by India, Punjab national bank
ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, bank of India,
central bank of India, bank of Baroda, Canada bank, Indian bank and bank of Mysore were set
up. Reserve bank of India came in 1935 as central bank of the country. In 1949, the banking
regulation act was passed and the RBI was nationalizes and acquired extensive regulatory
powers over the commercial banks.

In 1950, the Indian banking system comprised of the RBI, the imperial bank of India.
Cooperative banks, exchange banks and Indian joint stock banks.

During the first phase the growth was very slow and banks also experienced periodic failures
between 1913 and 1948. There were approximately 1100 banks, mostly small.

PHASE II: Nationalization Stage

After independence, in 1951, the all India rural credit survey, committee of direction with Shri.
A. D. Gorwala as chairman recommended amalgamation of the Imperial bank of India and ten
others banks into a newly established bank called the state bank of India (SBI). The government
of India accepted the recommendation of the committee and introduced the State Bank of India
bill in the LokSabha on 16th April 1995 and it was passed by parliament and got the presidents
assent on 8th May 1995. The act came into forces on 1 st July 1995, and the Imperial bank of India
was nationalizes in 1995 as the State Bank of India.

The main objective of establishing SBI by nationalizing the imperial bank of india was to
extend banking facilities on a large scale more particularly in the rural and semi-urban areas and
to diverse other public purposes.

In 1959, the SBI (Subsidiary Bank) act was proposed and the following eight state associated
banks were taken over by the SBI as its subsidiaries.

Name of the Bank Subsidiary with effect from

1. State bank of Hyderabad 1st October 1959

2. State bank of Bikaner 1st January 1960
3. State bank of Jaipur 1st January 1960
4. State bank of Saurashtra 1st May 1960
5. State bank of Patiala 1st April 1960
6. State bank of Mysore 1st March 1960
7. State of Indore 1st January 1968
8. State bank of Travancore 1st January 1960

With effect from 1st January 1963, the state bank of Bikaner and state bank of Jaipur with head
office located at Jaipur. Thus, seven subsidiary banks state bank of India formed the SBI group.
The SBI group under statutory obligations was required to open new offices in rural and semi-
urban areas and modern banking was taken to these unbanked remote areas.

On 19th July 1969, then the Prime Minister, Mrs. Indira Gandhi announced the nationalized of 14
major scheduled commercial banks each having deposits worth Rs. 50 crore and above. This was
a turning point in the history of commercial banking in India.

Later the government nationalized six more commercial private sector banks with deposit
liability of not less than Rs. 200 crore on 15th April 1980, viz.

i) Andhra bank
ii) Corporation bank
 iii) New bank of India
iv) Oriental bank of commerce
v) Punjab and Sind bank
vi) Vijaya bank

In 1969, the lead bank scheme was introduced to extend banking facilities to every corner of the
country. Later in 1975, regional rural banks were set up to supplement activities of the
commercial banks and to especially meet the credit needs of the weaker sections of the rural
society.

Nationalization of banks paved way for retail banking and as a result there has been an alt round
growth in the branch network, the deposit mobilization, credit disposals and of course
employment.

Government took major steps in this Indian banking sectors reform after independence in 1955,
it nationalized imperial bank of India with extensive banking facilities on a large scale especially
in rural and semi-urban areas. It formed state bank of India to act as the principal agent of RBI
and to handle banking transaction of the union and state government all over the country.

The following are the steps taken by government of India to regulate banking institution in the
country:

1949: ENACTMENT OF BANKING REGULAION ACT.

1955: NATIONALIZATION OF STATE BANK OF INDIA.

1959: NATIONALIZATION OF SBI SUBSIDIARIES.

1961: INSURANCE COVER EXTENDED TO DEPOSITE.

1969: NATIONALIZATION OF 14 MAJOR BANKS.

1971: CRESTION OF CREDIT GUARANTEE CORPORATION.

1975: CREATION OF REGIONAL RURAL BANKS.

1980: NATIONALIZATION OF SEVEN BANKS WITH DEPOSITE OVER 200 CRORE.

The first year after nationalization witnessed the total growth in the agricultural loans and the
loans made to SSI by 87% and 48% respectively. The overall growth in the deposit and the
advances indicated the improvement that has taken place in the banking habits of the people in
the rural and semi-urban areas where the branch network has spread. Such credit expansion
enabled the banks to achieve the goals of nationalization, it was however, achieved at the goals
of nationalization. It was however, achieved at the coast of profitability of the banks.

Consequences of Nationalization:

The quality of credit assets fell because of liberal credit extension policy.
Political interference had been additional malady.
Poor appraisal involved during the loan meals conduct for credit disbursals.
The credit facilities extended to the priority sector at concessional rates.
The high level of low yielding SLR investments adversely affected the profitability of the
banks.
The rapid branch expansion has been the squeeze on profitability of banks emanating
primarily due to the increase in the fixed costs.
There was downward trend in the quality of services and efficiency of the banks.

PHASE III: Post-Liberalization Era----Thrust on quality and profitability

By the beginning of 1990, the social banking goals set for the banking industry made most of the
public sector resulted in the presumption that there was no need to look at the fundamental
financial strength of this bank. Consequently they remained undercapitalized. Revamping this
structure of the banking industry was of extreme importance, as the health of the financial sector
in particular and the economy was a whole would be reflected by its performance.

The need for restructuring the banking industry was felt greater with the initiation of the real
sector reform process in 1992. The reform has enhanced the opportunities and challenges for the
real sector making them operate in a borderless global market place. However, to harness the
benefits of globalization, there should be an efficient financial sector to support the structural
reforms taking place in the real economy. Hence, along with the reform of the real sector, the
banking sector reformation was also addressed.

The route causes for the lacklustre performance of bank, formed the elements of the banking
sector reform. Some of the factors that led to the dismal performance of bank were.
 Regulated interest rate structure.
Lack of focus on profitability.
Lack of transparency in the banks balance sheet.
Lack of competition.
Excessive regulation on organization structure and managerial resources.
Excessive support from government.

Against this background, the financial sector reforms were initiated to bring about a paradigm
shift in the banking industry, by addressing the factor for its dismal performance.

This phase has introduced many products and facilities in the banking sector in its reforms
measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his
name which worked for the liberalization of banking practices.

Thecountry is flooded with foreign banks and their ATM stations. Efforts are being put to give a
satisfactory service to customers. Phone banking and net banking is introduced. The entire
system became more convenient and swift. Time is given more importance than money.

The financial system of India has shown a great deal of resilience it is sheltered from any crisis
triggered by any external macroeconomics shock as other East Asian countries suffered. This is
all due to a flexible exchange rate regime, the foreign reserves are high, the capital account is not
yet fully convertible, and banks and their customers have limited foreign exchange exposure.

Private Sector Banks

The concept of private banking was introduced about 15 years ago. These are the banks that do
not have any government stakes.

Private Banks have gained quite a foothold in the Indian banking industry over the last few years
especially because of optimum use of technology. The private banks are accountable for a share
of 18.2% of the Indian banking industry. Induslnd bank was the 1st private bank in India.
Currently the bank is among the fastest growing bank private bank in the country. IDBI which is
ranked as the 10th largest global development bank in counted as one of the finest financial
institutions in the subcontinent.
The first private bank in India to receive an in principle approval from the Reserve Bank of India
was Housing Development Finance Corporation Limited, to set up a bank in the private sector
banks in India as part of the RBIs liberalization of the Indian banking industry. It was
incorporated in August 1994 as HDFC bank limited with registered office in Mumbai and
commenced operations as scheduled commercial bank in January 1995.

ING Vaysya, yet another private bank of India was incorporated in the year 1930. Bangalore has
a pride of place for having the 1st branch inception in the year 1934. With successive years of
patronage and constantly setting new standards in banking. ING Vaysya bank has many credits to
its account.

Entry of Private Sector Banks:

There has been a paradigm shift in mindsets both at the government level in the banking industry
over the years since Nationalization of banks in 1969, particularly during the last decade (1990-
2000). Having achieved the objectives of nationalization, The most important issue before the
industry at present is survival and growth in the environment generated by the economic
liberalization greater competition with a view to achieving higher productivity and efficiency in
January 1993 for the entry of private sector banks based on the nationalization committee report
of 1991, which envisaged a larger role for private sector banks.

The RBIs prescribed a minimum paid up capital of Rs. 100 crores for the new bank and the
shares are to be listed at stock exchange. Also the new bank after being granted license under the
banking regulation act shall be registered as a public limited company under the companies act,
1956.

Subsequently 9 new commercial banks have been granted license to start banking operations.
The new private sectors banks have been very aggressive in business expansion and is also
reporting higher profile levels taking the advantage of technology and skilled manpower. In
certain areas, these banks have even our crossed the other group of banks including foreign
banks.

Current Scenario
Currently, overall, banking in India is considered as fairly mature in terms of supply, product
range and reach-even though reach in rural India still remains a challenge for the private sector
and foreign banks. Even in terms of quality of assets and capital adequacy, Indian banks are
considered to have clean, strong and transparent balance sheet as compared to other banks in
comparable economies in its region. The Reserve bank if India is an autonomous body, with
minimal pressure from the government. The stated policy of the bank on the Indian rupee is to
manage volatility-without any stated exchange rate-and this has mostly been true. With the
growth in the Indian economy expected to be strong for quite some time-especially in its services
sector, the demand for banking services-especially retail banking, mortgages and investment
services are expected to be strong. M&As, takeovers, asset sales and much more action (as it is
unravelling in China) will happen on this front in India.

In March 2006, the Reserve bank of India allowed Warburg Pincus to increase its stake in Kotak
Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been allowed
to hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any
stake exceeding 5% in the private sector banks would need to be vetted by them. Currently, India
has 88 scheduled commercial banks (SCBs) 27 public sector banks (that is with the
government of India holding a stake), 31 private banks (these do not have government stake;
they may be publicly listed and traded on stock exchange) and 38 foreign banks.

They have a combined network of over 53,000 branches and 17,000 ATMs. According to a report
by ICRA Limited, a rating agency, the public sector banks hold over 75%of total assets of the
banking industry, with the private and foreign banks holding 18.25% and 6.5% respectively.

BANKING SERVICES

Banking covers so many services that it is difficult to define it. However, these basic services
have always been recognized as the hallmark of the genuine banker.

These are
The receipt of the customers deposits
The collection of his cheques drawn on other banks
The payment of the customers cheques drawn on himself.

These are other various type of banking services like:

 1) Advances Overdraft, Cash Credit, etc.
2) Deposits Saving Account, Current Account, etc.
3) Financial services Bill discounting etc.
4) Foreign Services Providing foreign currency, travellers cheques, etc.
5) Money Transmission Funds transfer etc.
6) Savings Fixed deposits, etc.
7) Services of place or time ATM services.
8) Status Debit cards, Credit cards, etc.

Customer Services in commercial Banks:

Customer service is the service provided in support of a banks core products. Customer service
often includes answering questions; handling complaints. Customer service can occur on site (as
when an onstage employee helps a customer or answer a question) or it can occur over the phone
or the internet. Quality customer service is essential to building cordial customer relationship.

Banking being a service industry, a lot depends on efficient and prompt customer service.
Customer service is the most important duty of the banking operations. Prompt and efficient
service with smile will develop good public relations reduce complaints and increase business.

Why is customer service important?

Changing customer expectations: today the customer is more demanding and more
sophisticated than he or she was thirty year ago.
The increased importance of customer services: with changing customer expectations,
competitors are seeing customer service as a competitive weapon with which they
differentiate their products and services.
The need for a relationship strategy: to ensure that a customer service strategy that will
create a value preposition for customers should be formulated implemented and
controlled. It is necessary to give it a central role and not one that various elements of the
marketing mix.

The customer is the kingpin in growth organization like commercial banks. Only those
institutions which work according to his dictates will flourish. Quality, consistency and durability
at low price are the final expectations of a customer. Quality will have to be unambiguous, of
world class quality. Quality cannot be of minimum acceptable standards. Customer
responsiveness must be quick and also competent. Speed, performance and cost will be the new
values mantra for success.

These key areas of customers services to be attended timely and regularly are:

i. Submission of statement of A/Cs to customers.

ii. Updating of saving pass book.
iii. Teller system efficiency.
iv. Cleanliness and upkeep of premises.
v. Intermediate credit for institution cheques/land bills.
vi. Advance intimation to customers for rewards of term deposits receipts on maturity.
vii. Advance for debit/credit to accounts.
viii. Punctuality of staff.

RESERVE BANK OF INDIA

The central bank of the country is the Reserve Bank of India (RBI). It was established in April
1935 with a share capital of Rs. 5 crores on the basis of the recommendations of the Hilton
Young Commission. The share capital was divided into shares of Rs. 100 each fully paid which
was entirely owned by private shareholders in the beginning. The Government held shares of
nominal value of Rs. 2, 20,000.

Reserve Bank of India was nationalized in the year 1949. The general superintendence and
direction of the Bank is entrusted to Central Board of Directors of 20 members, the Governor
and four Deputy Governors, one Government official from the Ministry of Finance, ten
nominated Directors by the Government to give representation to important elements in the
economic life of the country, and four nominated Directors by the Central Government to
represent the four local Boards with the headquarters at Mumbai, Kolkata, Chennai and New
Delhi. Local Boards consist of five members each Central Government appointed for a term of
four years to represent territorial and economic interests and the interests of co-operative and
indigenous banks. .

The Reserve Bank of India Act, 1934 was commenced on April 1, 1935. The Act, 1934 (II of
1934) provides the statutory basis of the functioning of the Bank. .
The Bank was constituted for the need of following:
1. To regulate the issue of banknotes
2. To maintain reserves with a view to securing monetary stability and
3. To operate the credit and currency system of the country to its advantage.

Functions of Reserve Bank of India

The Reserve Bank of India Act of 1934 entrust all the important functions of a central bank, the
Reserve Bank of India.
Bank of issue:

Under Section 22 of the Reserve Bank of India Act, the Bank has the sole right to issue bank
notes of all denominations. The distribution of one rupee notes and coins and small coins all over
the country is undertaken by the Reserve Bank as agent of the Government. The Reserve Bank
has a separate Issue Department which is entrusted with the issue of currency notes. The assets
and liabilities of the Issue Department are kept separate from those of the Banking Department.

BANKER TO GOVERNMENT:
The second important function of the Reserve Bank of India is to act as Government banker,
agent and adviser. The Reserve Bank is agent of Central Government and of all State
Governments in India excepting that of Jammu and Kashmir. The Reserve Bank has the
obligation to transact Government business, via. To keep the cash balances as deposits free of
interest, to receive and to make payments on behalf of the Government and to carry out their
exchange remittances and other banking operations. The Reserve Bank of India helps the
Government - both the Union and the States to float new loans and to manage public debt. It acts
as adviser to the Government on all monetary and banking matters.

Bankers' Bank and Lender of the Last Resort

The Reserve Bank of India acts as the bankers' bank. According to the provisions of the Banking
Companies Act of 1949, every scheduled bank was required to maintain with the Reserve Bank a
cash balance equivalent to 5% of its demand liabilities and 2 per cent of its time liabilities in
India.
The scheduled banks can borrow from the Reserve Bank of India on the basis of eligible
securities or get financial accommodation in times of need or stringency by rediscounting bills of
exchange. Since commercial banks can always expect the Reserve Bank of India to come to their
help in times of banking crisis the Reserve Bank becomes not only the banker's bank but also the
lender of the last resort.

CONTROLLER OF CREDIT

The Reserve Bank of India is the controller of credit i.e. it has the power to influence the volume
of credit created by banks in India. It can do so through changing the Bank rate or through open
market operations. According to the Banking Regulation Act of 1949, the Reserve Bank of India
can ask any particular bank or the whole banking system not to lend to particular groups or
persons on the basis of certain types of securities. As supreme banking authority in the country,
the Reserve Bank of India, therefore, has the following powers:
(a) It holds the cash reserves of all the scheduled banks.
(b) It controls the credit operations of banks through quantitative and qualitative controls.
(c) It controls the banking system through the system of licensing, inspection
and calling for information. .
(d) It acts as the lender of the last resort by providing rediscount facilities to scheduled banks.

Custodian of Foreign Reserves:

The Reserve Bank of India has the responsibility to maintain the official rate of exchange.
According to the Reserve Bank of India Act of 1934, the Bank was required to buy and sell at
fixed rates any amount of sterling in lots of not less than Rs. 10,000. The rate of exchange fixed
was Re. 1 = sh. 6d. Since 1935 the Bank was able to maintain the exchange rate fixed at lsh.6d.
Though there were periods of extreme pressure in favour of or against the rupee. After India
became a member of the International Monetary Fund in 1946, the Reserve Bank has the
responsibility of maintaining fixed exchange rates with all other member +countries of the
I.M.F.Besides maintaining the rate of exchange of the rupee, the Reserve Bank has to act as the
custodian of India's reserve of international currencies.

Supervisory function:

In addition to its traditional central banking functions, the Reserve bank has certain non-
monetary functions of the nature of supervision of banks and promotion of sound banking in
India. The Reserve Bank Act, 1934, and the Banking Regulation Act, 1949 have given the RBI
wide powers of supervision and control over commercial and co-operative banks, relating to
licensing and establishments, branch expansion, liquidity of their assets, management and
methods of working, amalgamation, reconstruction, and liquidation. The RBI is authorized to
carry out periodical inspections of the banks and to call for returns and necessary information
from them.
The nationalization of 14 major Indian scheduled banks in July 1969 has imposed new
responsibilities on the RBI for directing the growth of banking and credit policies towards more
rapid development of the economy and realization of certain desired social objectives.

Promotionalfunctions:

The Bank now performs a variety of developmental and promotional functions, which, at one
time, were regarded as outside the normal scope of central banking. The Reserve Bank was asked
to promote banking habit, extend banking facilities to rural and semi-urban areas, and establish
and promote new specialized financing agencies. It set up the Deposit Insurance Corporation in
1962, the Unit Trust of India in 1964, the Industrial Development Bank of India also in 1964, the
Agricultural Refinance Corporation of India in 1963 and the Industrial Reconstruction
Corporation of India in 1972. These institutions were set up directly or indirectly by the Reserve
Bank to promote saving habit and to mobilize savings, and to provide industrial finance as well
as agricultural finance. The RBI has set up the Agricultural Refinance and Development
Corporation to provide long-term finance to farmers.

FACTS FILES OF BANK IN INDIA

The first, oldest, largest, the biggest all such information in this section:

The First Bank in India to be given a ISO Canara Bank

certification

The First Bank in Northern India to get ISO Punjab and Sind
certification for their selected branches Bank

The First Indian bank to be have started solely with Punjab national
the Indian capital bank

The First among Private sector Bank in Kerala to South Indian Bank
become a scheduled bank in 1946 under the RBI
 act1946.

Indias oldest, largest and most successful State Bank Of

commercial bank, offering the widest possible range India.
of domestic, international,and NRI products and
services through its vast network in India and
Overseas.

The Oldest public sector bank in india having Allabahad bank of

branches all over the india. And serving the India
customers from the last 132 yrs.

Public Sector Banks in India:

Among the Public Sector Banks in India, United Bank of India is one of the 14 major banks
which were nationalized on July 19, 1969. Its predecessor, in the Public Sector Banks, the United
Bank of India Ltd., was formed in 1950 with the amalgamation of four banks viz. Camilla
Banking Corporation Ltd. (1914), Bengal Central Bank Ltd. (1918),Comilla Union Bank Ltd.
(1922) and Hooghly Bank Ltd. (1932).
The following are the list of Public Sector Banks in India

ALLAHABAD BANK
ANDHRA BANK
BANK OF BARODA
BANK OF INDIA
BANK OF MAHARASTRA
CANARA BANK
CENTRAL BANK OF INDIA
CORPORATION BANK
DENA BANK

List of State Bank of India and its subsidiary, a Public Sector Banks

STATE BANK OF INDIA

 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

PRIVATE SECTOR BANKS IN INDIA:

Private banking in India was practiced since the beginning of banking system in India. The first
private bank in India to be set up in Private Sector Banks in India was IndusInd Bank. It is one of
the fastest growing Bank Private Sector Banks in India. IDBI ranks the tenth largest development
bank in the world as Private Banks in India and has promoted world class institutions in India.
.
List of Private Banks in India

DHANALAKSHMI BANK

DEVELOPMENT CREDIT BANK

FEDERAL BANK

HDFC BANK

ICICI BANK

IDBI BANK

INDUSIND BANK

CO-OPERATIVE BANKS IN INDIA:

The Co operative banks in India started functioning almost 100 years ago. The Cooperative
bank is an important constituent of the Indian Financial System, judging by the role assigned
to co operative, the expectations the co operative is supposed to fulfill, their number, and the
number of offices the cooperative bankoperate. Though the co operative movement
originated in the West, but the importance of such banks have assumed in India is rarely
paralleled anywhere else in the world.

The cooperative banks in India play an important role even today in rural financing. The
businesses of cooperative bank in the urban areas also have increased phenomenally in recent
years due to the sharp increase in the number of primary co-operative banks. Co operative
Banks in India are registered under the Co-operative Societies Act. The cooperative bank is also
regulated by the RBI. They are governed by the Banking Regulations Act 1949 and.
Banking Laws (Co-operative Societies) Act, 1965.

REGIONAL RURAL BANKS IN INDIA:

Rural banking in India started since the establishment of banking sector in India. Rural Banks in
those days mainly focused upon the agro sector. Regional rural banks in India penetrated every
corner of the country and extended a helping hand in the growth process of the country.

SBI has 30 Regional Rural Banks in India known as RRBs. The rural banks of SBI are spread
in 13 states extending from Kashmir to Karnataka and Himachal Pradesh to North East. The
total number of SBIs Regional Rural Banks in India branches is 2349 (16%). Till date in rural
banking in India, there are 14,475 rural banks in the country of which 2126 (91%) are located in
remote rural areas.

NABARD

National Bank for Agriculture and Rural Development (NABARD) is a development bank in
the sector of Regional Rural Banks in India. It provides and regulates credit and gives service
for the promotion and development of rural sectors mainly agriculture, small scale industries,
cottage and village industries, handicrafts. It also finances rural crafts and other allied rural
economic activities to promote integrated rural development. It helps in securing rural
prosperity and its connected matters.

FOREIGN BANKS IN INDIA:

Foreign Banks in India always brought an explanation about the prompt services to customers.
After the set up foreign banks in India, the banking sector in India also become competitive and
accurative.A new rule announced by the Reserve Bank of India for the foreign banks in India in
this budget has put up great hopes among foreign banks which allow them to grow unfettered.

Now foreign banks in India are permitted to set up local subsidiaries. The policy conveys that
foreign banks in India may not acquire Indian ones (except for weak banks identified by the
RBI, on its terms) and their Indian subsidiaries will not be able to open branches freely.
.List of Foreign Banks in India

ABU DHABI COMMERCIAL BANK

ANZ GRINDLAYS BANK

BANK OF AMERICA

CITI BANK

CHINA TRUST COMMERCIAL BANK

HSBC

STANDARD CHARTERED BANK

ABN-AMRO BANK

DEUTSCHE BANK

JPMORGAN CHASE BANK

BANKING STRUCTURE IN INDIA:

In todays dynamic world banks are inevitable for the development of a country. Banks play a
pivotal role in enhancing each and every sector. They have helped bring a draw of development
on the worlds horizon and developing country like India is no exception.
Banks fulfills the role of a financial intermediary. This means that it acts as a vehicle for
moving finance from those who have surplus money to (however temporarily) those who have
deficit. In everyday branch terms the banks channel funds from depositors whose accounts are
in credit to borrowers who are in debit.
Without the intermediary of the banks both their depositors and their borrowers would have to
contact each other directly. This can and does happen of course. This is what has lead to the
very foundation of financial institution like banks.
Before few decades there existed some influential people who used to land money. But a
substantially high rate of interest was charged which made borrowing of money out of the reach
of the majority of the people so there arose a need for a financial intermediate.

The Bank have developed their roles to such an extent that a direct contact between the
depositors and borrowers in now known as disintermediation.
Banking industry has always revolved around the traditional function of taking deposits, money
transfer and making advances. Those three are closely related to each other, the objective being
to lend money, which is the profitable activity of the three. Taking depositsgenerates funds for
lending and money transfer services are necessary for the attention of deposits. The Bank have
introduced progressively more sophisticated versions of these services and have diversified
introduction in numerable areas of activity not directly relating to this traditional trinity.
 INDIAN BANKING SYSTEM

Reserve Bank of India

Schedule Banks Non-Schedule Banks

Central co-op
Commercial Banks
State co-op Commercial Banks and
Banks Banks Primary
Cr.SocietiesSo

Indian Foreign

Public Sector Private Sector HDFC,

Banks Banks ICICI, etc
State Bank of Other Nationalized Regional
India and its Banks Rural Banks
Subsidiaries

INDIAN BANKING INDUSTRY ANALYSIS:

The banking scenario in India has been changing at fast pace from being just the borrowers and
lenders traditionally, the focus has shifted to more differentiated and customized product/service
provider from regulation to liberalization in the year 1991, from planned economy to market.

Economy, from licensing to integration with Global Economics, the changes have been swift. All
most all the sector operating in the economy was affected and banking sector is no exception to
this. Thus the whole of the banking system in the country has undergone a radical change. Let us
see how banking has evolved in the past 57 years of independence.

After independence in 1947 and proclamation in 1950 the country set about drawing its road map
for the future public ownership of banks was seen inevitable and SBI was created in 1955 to
spearhead the expansion of banking into rural India and speed up the process of magnetization.

Political compulsions brought about nationalization of bank in 1969 and lobbying by bank
employees and their unions added to the list of nationalized banks a few years later.
Slowly the unions grew in strength, while bank management stagnated. The casualty was to the
customer service declined, complaints increased and bank management was unable to item the
rot.

In the meantime, technology was becoming a global phenomenon lacking a vision of the future
and the banks erred badly in opposing the technology up gradation of banks. They mistakenly
believed the technology would lead to retrenchment and eventually the marginalization of
unions.

The problem faced by the banking industry soon surfaced in their balance sheets. But the
prevailing accounting practices unable banks to dodge the issue.

The rules of the game under which banks operated changed in 1993. Norms or income
Recognition, Assets classification and loan loss provisioning were put in place and capital
adequacy ratio become mandatory. The cumulative impact of all these changes has been on the
concept of state ownership in banks. It is increasingly becoming clear that the state ownership in
bank is no longer sustainable.

The amendment of banking regulation act in 1993 saw the entry of new private sector banks and
foreign banks.

MAJOR PLAYER IN INDIA

1. HDFC BANK LTD

2. ICICI BANK LTD
3. STATE BANK OF INDIA LTD
4. PUNJAB NATOINAL BANK LTD
5. BANK OF BARODA LTD
6. FEDERAL BANK LTD
7. AXIS BANK LTD
8. ING VYSYA BANK LTD
9. IDBI BANK LTD
10. INDUSIND BANK LTD
11. YES BANK LTD
 INTRODUCTION TO CREDIT FACILITY

A credit facility is a type of loan made in a business or corporate finance context,

including revolving credit, term loans, committed facilities, letters of credit and most retail credit
accounts. Companies frequently implement a credit facility in conjunction with closing a round
of equity financing or raising money by selling shares of its stock. A key consideration for any
company is how it will incorporate debt in its capital structure while considering the parameters
of its equity financing.

BREAKING DOWN 'Credit Facility'

A credit facility lets a company take out an umbrella loan for generating capital over an extended
period of time.

Flexibility of a Credit Facility

A business may use a credit facility rather than reapplying for a loan each time it needs money.

The company may take out a credit facility based on collateral that may be sold or substituted
without altering the terms of the original contract. The facility may apply to different projects or

departments in a business and be distributed at the companys discretion. The time period for

repaying the loan is flexible.

Terms and Structure of a Credit Facility

A credit facility agreement details the borrowers responsibilities, loan warranties, lending

amounts, interest rates, loan duration, default penalties, and repayment terms and conditions.

The contract opens with the basic contact information for each of the parties involved, followed

by a summary and definition of the credit facility itself. The summary includes a brief

discussion of the facilitys origin, the purpose of the loan and the ways in which funds are

distributed. Specific precedents on which the facility rests are included as well. For example,

statements of collateral for secured loans or particular borrower responsibilities may be

discussed.

Repayment Terms of a Credit Facility

The terms of interest payments, repayments and loan maturity are detailed. They include the

interest rates and date for repayment, if a term loan, or the minimum payment amount and

recurring payment dates, if a revolving loan. The agreement details whether interest rates may

change and specifies the date on which the loan matures, if applicable .
 TYPES OF CREDIT FACILITY

LOAN

In todays competitive world everything happens only with the help of money or through the
money every person need money. But some time a person has not cash on hand at that time he
needs lone either from any friend or from any financial institute. Lone does not mean that only
lower class person needs it but also upper class person it is needed.

As per the requirement of the every person there are much type of loans are there in the
HDFC bank.

Personal loan
 A person has so many dreams but some time due to scarcity of money a dream cant be satisfy.
So, here one solution for that person this is personal loan. From this he/she can fulfill their needs
or requirement. It can be anything either a dream of vacation or son/daughters admission to
college or any wedding, so personal loan can be helpful in this entire requirement.

As person ordered in the hotel for tea or coffee and it is immediately came fast, same over here
any person want to get a personal loan with the nominal documents he can get the loan.

Home loan

HDFC Bank brings, HDFC home loans to doorstep. With over 30 years of experience, a
dedicated team of experts and a complete package to meet all housing finance needs, HDFC
Home Loans, help people realize dream

Vehicles loan

Nowadays the life is being so fast, time value is becoming more important so to reach at the
destination of any business related occasion or for a boy to reach college or any where at the fix
time there are so many requirement of vehicles. But every people have no capacity to purchase
vehicles with cash so for that here in the HDFC bank vehicles loan is available. There are many
types of vehicles loan.

Types of vehicles loan

Two wheeler loans

New car loan

Used car loan

Tractor loan (for agree culture business)

Commercial vehicle loan

So, as per the requirement of the person there are these types of loans are available this are at the
chip rate and hassel free from more documentation and other procedure. And commercial
businessman can get the benefits of the commercial vehicles loans. Thus as per the need of
different people there are vehicle loans available. And also terms and condition are different as
per the requirement.

Express loan plus

Bank offer Express Loans Plus at person Doorstep to help fulfill all his/her needs. The procedure
is simple, documentation is minimal and approval is quick. It is helpful to person in repairing of
house, School admission or also in the family holiday.

GOLD LOAN

With HDFC Bank's Gold Loan, person can get an instant loan against gold jewellery and
ornaments. The procedure is simple, documentation is minimal and approval is quick. A person
can get 70% loan on the value of the gold jewellery and ornaments.There is also availability of
the overdraft on the gold jewellery. With this a customer can get free additional services like free
personalized cheque book, free international debit card, and free net banking phone banking
services.

Educational loan

Nowadays important of education becoming very high. As it important becoming high it is

becoming costly. So in the higher education some time people can not effort a high price at a
same time. So, there is education loan is also available for the student.
available up to tenure of 7 years including moratorium period.

Loans disbursed directly to the educational institution. It is released as per fee schedules of
institutes. Exclusive Telegraphic Transfer facility. A person can get loan up to 10 lakhs to study
in India and 20 lakhs if he wants to study in abroad. Loan facility available for courses abroad.
Loans available for short duration/ job oriented courses also.

Loan against security

With HDFC Bank's Loan against Securities, person can get an overdraft against securities like
Equity Shares, Mutual Fund Units(Equity, Debt, FMPs), Gold Exchange Traded
Fund(ETF),NABARD's BhavishyaNirman Bonds, Policies issued by LIC & Select Private
Insurance Companies, NSC, KVP, UTI Bonds (ARS & US64 Bonds) and Gold Deposit
Certificates, while still retaining ownership. And the best part is that he can continue to enjoy all
his shareholder benefits such as rights, dividends and bonuses Loan available to NRIs against
Shares, Mutual Funds (equity, Debt, FMPs), US64 Bonds, Insurance Policies, NSC, and KVP.

Loan against property

HDFC Bank brings Loan Against Property (LAP). Person can now take a loan against
residential or commercial property, to expand his business, plan a dream wedding, and fund his
child's education and much more. He can depend on bank to meet all his business requirements
even to purchase a new shopor office for business. Loan to purchase Commercial Property (LCP)
is a specially designed product to help person expand his business without reducing the capital
from his business.

These are loans services providing by HDFC bank which are very hassle free and really benefits
for most of customer and most of customer are satisfied by the loan services providing by the
bank.

BANK OVERDRAFT

You can arrange a bank overdraft on your cheque amount usually the account your salary is paid
in to . This means they will let your cheque account be overdrawn .The interest rate is lot higher
than the prime interest rate .you do not have to repay the overdraft within a fixed time, but the
bank will review it at least once a year, and can withdraw it any time. An overdraft occurs when
money is withdrawn from a bank account and the available balance goes below zero. In this
situation the account is said to be "overdrawn". If there is a prior agreement with the account
provider for an overdraft, and the amount overdrawn is within the authorized overdraft limit,
then interest is normally charged at the agreed rate. If the negative balance exceeds the agreed
terms, then additional feesmay be charged and higher interest rates may apply.
 REVOLVING CREDIT

This will be a fixed amount of money that the bank agrees to loan you. You dont have to take it
all at once,and as soon as you pay some back, you can re-borrow that amount.This kind of loan is
flexible,but as a high interest rate.Revolving credit is a type of credit that does not have a fixed
number of payments, in contrast to installment credit. Credit cards are an example of revolving
credit used by consumers. Corporate revolving credit facilities are typically used to provide
liquidity for a company's day-to-day operations. They were first introduced by the Strawbridge
and ClothierDepartment Store

It is basically an arrangement which allows for the loan amount to be withdrawn, repaid, and
redrawn again in any manner and any number of times, until the arrangement expires. Credit
card loans and overdrafts are revolving loans, also called evergreen loan.

Typical characteristics

The borrower may use or withdraw funds up to a pre-approved credit limit.

The amount of available credit decreases and increases as funds are borrowed and then
repaid.

The credit may be used repeatedly.

The borrower makes payments based only on the amount he or she has actually used or
withdrawn, plus interest.

The borrower may repay over time (subject to any minimum payment requirement), or in
full at any time.

In some cases, the borrower is required to pay a fee to the lender for any money that is
undrawn; this is especially true of corporate bank revolving-credit loans.

A revolving loan provides a borrower with a maximum aggregate amount of capital, available
over a specified period of time. Unlike a term loan, the revolving loan allows the borrower to
draw down, repay and re-draw loans on the available funds during the term of the note. Each
loan is borrowed for a set period of time, usually one, three or six months, after which time it is
technically repayable. Repayment of a revolving loan is achieved either by scheduled reductions
in the total amount of the loan over time, or by all outstanding loans being repaid on the date of
termination. A revolving loan made to refinance another revolving loan which matures on the
same date as the drawing of the second revolving loan is known as a "rollover loan", if made in
the same currency and drawn by the same borrower as the first revolving loan. The conditions to
be satisfied for drawing a rollover loan are typically less onerous than those for other loans.[3]

A revolving loan is a particularly flexible financing tool as it may be drawn by a borrower by

way of straightforward loans, but it is also possible to incorporate different types of financial
accommodation within it - for example, it is possible to incorporate a letter of credit, swingline
or overdraft within the terms of a revolving credit loan. This is often achieved by creating a
sublimit within the overall loan, allowing a certain amount of the lenders' commitment to be
drawn in the form of these different facilities.

CREDIT CARDS

If you have a good history and a regular income,you might qualify for a credit card at the
bank.A credit card is a payment card issued to users (cardholders) as a method of payment. It
allows the cardholder to pay for goods and services based on the holder's promise to pay for
them. The issuer of the card (usually a bank) creates a revolving account and grants a line of
credit to the cardholder, from which the cardholder can borrow money for payment to
a merchant or as a cash advance.

A credit card is different from a charge card, where it requires the balance to be repaid in full
each month. In contrast, credit cards allow the consumers a continuing balance of debt, subject
to interest being charged. A credit card also differs from a cash card, which can be used like
currency by the owner of the card. A credit card differs from a charge card also in that a credit
card typically involves a third-party entity that pays the seller and is reimbursed by the buyer,
whereas a charge card simply defers payment by the buyer until a later date.
Usage

merchants for them to accept their credit cards. Merchants often advertise which cards they
accept A credit card issuing company, such as a bank or credit union, enters into agreements with
by displaying acceptance marks generally derived from logos or this may be communicated
in signage in the establishment or in company material (e.g., a restaurant's menu may indicate
which credit cards are accepted). Merchants may also communicate this orally, as in "We take
(brands X, Y, and Z)" or "We don't take credit cards".

Visa, Master Card,American Express

The credit card issuer issues a credit card to a customer at the time or after an account has been
approved by the credit provider, which need not be the same entity as the card issuer. The
cardholders can then use it to make purchases at merchants accepting that card. When a purchase
is made, the cardholder agrees to pay the card issuer. The cardholder indicates consent to pay by
signing a receipt with a record of the card details and indicating the amount to be paid or by
entering a personal identification number (PIN). Also, many merchants now accept verbal
authorizations via telephone and electronic authorization using the Internet, known as a card not
presenttransaction(CNP).

Electronic verificationsystems allow merchants to verify in a few seconds that the card is valid
and the cardholder has sufficient credit to cover the purchase, allowing the verification to happen
at time of purchase. The verification is performed using a credit card payment terminal or point-
of-sale (POS) system with a communications link to the merchant's acquiring bank. Data from
the card is obtained from a magnetic stripe or chip on the card; the latter system is called Chip
and PIN in the United Kingdom and Ireland, and is implemented as an EMV card.
For card not present transactions where the card is not shown (e.g., e-commerce, mail order, and
telephone sales), merchants additionally verify that the customer is in physical possession of the
card and is the authorized user by asking for additional information such as the security
codeprinted on the back of the card, date of expiry, and billing address.

Each month, the cardholder is sent a statement indicating the purchases made with the card, any
outstanding fees, and the total amount owed. In the US, after receiving the statement, the
cardholder may dispute any charges that he or she thinks are incorrect (see 15 U.S. C. 1643,
which limits cardholder liability for unauthorized use of a credit card to $50). The Fair Credit
Billing Act gives details of the US regulations. The cardholder must pay a defined minimum
portion of the amount owed by a due date, or may choose to pay a higher amount. The credit
issuer charges interest on the unpaid balance if the billed amount is not paid in full (typically at a
much higher rate than most other forms of debt). In addition, if the cardholder fails to make at
least the minimum payment by the due date, the issuer may impose a "late fee" and/or other
penalties. To help mitigate this, some financial institutions can arrange for automatic payments to
be deducted from the cardholder's bank account, thus avoiding such penalties altogether, as long
as the cardholder has sufficient funds.

Many banks now also offer the option of electronic statements, either in lieu of or in addition to
physical statements, which can be viewed at any time by the cardholder via the issuer's online
banking website. Notification of the availability of a new statement is generally sent to the
cardholder's email address. If the card issuer has chosen to allow it, the cardholder may have
other options for payment besides a physical check, such as an electronic transfer of funds from a
checking account. Depending on the issuer, the cardholder may also be able to make multiple
payments during a single statement period, possibly enabling him or her to utilize the credit limit
on the card several times

COMPANY OVERVIEW

INTRODUCTION

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to
receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the
private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. The
bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its
registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled
Commercial Bank in January 1995. HDFC is India's premier housing finance company and
enjoys an impeccable track record in India as well as in international markets. Since its
inception in 1977, the Corporation has maintained a consistent and healthy growth in its
operations to remain the market leader in mortgages. Its outstanding loan portfolio covers well
over a million dwelling units. HDFC has developed significant expertise in retail mortgage loans
to different market segments and also has a large corporate client base for its housing related
credit facilities. With its experience in the financial markets, a strong market reputation,
large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote
a bank in the Indian environment.

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

HDFC Bank Limited (the Bank) is an India-based banking company engaged in providing a
range of banking and financial services, including commercial banking and treasury operations.
The Bank has a network of 1412 branches and 3295 automated teller machines (ATMs) in 528
cities and total employees is 52687.

BRANCHES (NOS) ATMs (Nos.)

1412 3295

761 1977
684 1605

2007 2008 2009 2007 2008 2009

 43.9
38.2
29.1

2007 2008 2009

Snapshot
Company Background
Industry Finance - Banks - Private Sector.
Business Group HDFC Group
Incorporation Date 31/12/1994
Public Issue Date 31/12/1995
Face Value 10.0000

Company/Business Registration No INE040A01018

Key Officials CEO Adityapuri
 HISTORY OF HDFC BANK

HDFC BANK LTD was incorporated in August 1994 in the name of 'HDFC Bank Limited, with
its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled
Commercial Bank in January 1995.

If ever there was a man with a mission it was Hasmukhbhai Parekh, Founder and Chairman-
Emeritus, of HDFC Group.HDFC BANK LTD was amongst the first to set up a bank in the
private sector. The bank was incorporated on 30th August 1994 in the name of HDFC Bank
Limited, with its registered office in Mumbai. It commenced operations as a Scheduled
Commercial Bank on 16th January 1995. The bank has grown consistently and is now amongst
the leading players in the industry .
HDFC is India's premier housing finance company and enjoys an impeccable track record in
India as well as in international markets. Since its inception in 1977, the Corporation has
maintained a consistent and healthy growth in its operations to remain the market leader in
mortgages. Its outstanding loan portfolio covers well over a million dwelling units.
HDFC has developed significant expertise in retail mortgage loans to different market segments
and also has a large corporate client base for its housing related credit facilities. With its
experience in the financial markets, a strong market reputation, large shareholder base and
unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian
environment In a milestone transaction in the Indian banking industry, Times Bank was merged
with HDFC Bank Ltd., effective February 26, 2000.

MISSION

I. World Class Indian Bank.

II. Benchmarking against international standards.

III. To build sound customer franchises across distinct businesses.

IV. Best practices in terms of product offerings, technology, service levels, risk management
and audit & compliance.

VISION STATEMENT OF HDFC BANK

The HDFC Bank is committed to maintain the highest level of ethical standards, professional
integrity and regulatory compliance. HDFC Banks business philosophy is based on four core
values such as:-

1. Operational excellence.
2. Customer Focus.
3. Product leadership.
4. People.

OBJECTIVE
The objective of the HDFC Bank is to provide its target market customers a full range of
financial products and banking services, giving the customer a one-step window for all his/her
requirements. The HDFC Bank plus and the investment advisory services programs have been
designed keeping in mind needs of customers who seeks distinct financial solutions, information
and advice on various investment avenues.

BUSINESS STRATEGY

I. Increasing market share in Indias expanding banking

II. Delivering high quality customer service
III. Maintaining current high standards for asset quality through disciplined credit risk
management

IV. Develop innovative products and services that attract targeted customers and address
inefficiencies in the Indian financial sector.

V. tinue to develop product and services that reduce our cost of funds, and
Type Private company

Traded as BSE: 500180

NSE: HDFCBANK
NYSE: HDB
BSE SENSEX Constituent
CNX Nifty Constituent

Industry Banking, Financial services

Founded August 1994

Headquarters Mumbai, Maharashtra, India

Area served Worldwide

Key people AdityaPuri (MD)

Products Investment Banking

Investment Management
Wealth Management
Private Banking
Corporate Banking
Private Equity
Finance and Insurance
Consumer Banking
Mortgages
Credit Cards

Revenue 74,373.22 crore(US$11 billion)

(2016)

Profit 12,817.33
 crore(US$1.9 billion) (2016)

Total assets 687,892 crore(US$100 billion)

(2015)

Total equity 505.64 crore(US$75 million)

Number of 76,286 (March 2015)

employees

Website HDFCBank.com

Registered Office

HDFC Bank House, SenapatiBapatMarg, Lower Parel

Mumbai - 400013
Maharashtra - India
Phone : 66521000, 24988484
Fax : 24960737, 24965235
Email : shareholder.grievances@hdfcbank.com
Internet : N.A.

BOARD OF DIRECTORS

PERSON DESIGNATION

Mr.JagdishKapoor Vice President

 Mr.AdityaPuri Managing Director

Mr.PareshSukthankar Executive Director

Mr. Harish Engineer Executive Director

Mr.Keki M. Mistry Director

Mr.AshimSamanta Director

Mr.ArvindPande Director

Mrs.RenuKarnad Director

Mr. C M Vasudev Director

Mr.Gautam Divan Director

TOP MANAGEMENT

S.No Name Designation

1 ShyamalaGopinath Chair Person

2 PareshSukthankar Deputy Managing Director

3 A N Roy Director

4 KekiMistry Director

5 RenuKarnad Director

6 Umesh Chandra Sarangi Additional Director

7 Mr.AdityaPuri Managing Director

8 KaizadBharucha Executive Director

9 Bobby Parikh Director

10 ParthoDatta Director
 11 Malay Patel Director

Other Detail:

Business Group HDFC Group

Listings BSE , NSE , NYSE

ISIN No. INE040A01018

Incorporation 31/12/1994

Public Issue Date 31/12/1995

BUSINESS HEADS

A Asokan Emerging Enterprise Group

Amit Kumar Retail Branch Banking-West 1

Anil Nath Business Banking - Working Capital & Retail Agri

Arup Rakshit Treasury

AshimaKhannaBhat Emerging Corporate Group

Ashok Khanna Retail Assets TW

BhaveshChandulal Wholesale Operations

BijuPillai Retail Assets - EL,PL,LAS & GOLD

BirendraSahu retail Operations

Deepak Maheshwari Credit and Market Risk

Gsv Surya Prasad Information Technology

Harpreet Singh NRI Business

Jimmy M Tata Corporate Banking

Munish Mittal Information Technology

NandkishorLaxman Financial Institution Group

NitinSubramanya Equities and Private Banking

ParagRao Credit Cards

RajenderSehgal Financial Institution Group

RohitGaurav Marketing

Sanjay B Dongre Legal

Sanjeev Patel Direct Banking Channel

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

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

2016AWARDS

IDRBT Banking Technology Excellence Best Bank in Banking Technology

Awards 2016 Excellence for the year 2015-16

Cisco-CNBC TV 18 Digitizing India Award for Innovations in the Financial

Awards Industry & Digital Banking

Dun & Bradstreet Corporate Awards 2016 HDFC Bank wins Dun & Bradstreet
Corporate Award 2016 in the Banking
sector

The Financial Express India's Best Banks - Profitability: Rank 1

Awards 2015 - Efficiency: Rank 1
- Strength & Soundness: Rank 1

Outlook Money Awards 2015 - Best Bank of the year : Runner up

- Winner : Institutional Financial
Distributor of the year

Pension Fund Regulatory and Development - Best Performing Bank - Maximum APY
Authority awards for Atal Pension Yojana Subscribers
- Best Performing Bank in the Private
sector Banks category
- Best Performing Bank : Atal Pension
Yojana Carnivals in Private Sector Banks

Business Today KPMG India's Best Banks 2015 Awards

Barron's World's Top 30 CEOs Mr.AdityaPuri in Barron's Top 30 Global

CEOs for 2nd year

IBA Awards HDFC Bank wins prestigious IBA Banking

 Products of HDFC Bank

HDFC bank provides very large range of financial product to the customer for their better
financial transaction. The product of HDFC bank are

Savings Account

Everyone needs a savings account to store away the surplus cash. The bank offers savings
accounts under various types starting from basic accounts to premium accounts with variety of
features. The interest rates on the Savings Account are 4% p.a. which is calculated daily on the
end of day balance. The following accounts and their respective interest rates are mentioned
underneath:

SavingsMax Account
Regular Savings Account
Women Savings Account
Kids Advantage Account
Senior Citizens Account
Family Savings Group Account
 Basic Savings Bank Deposit Account
Institutional Savings Account
BSBDA Small Account

Salary Accounts

The bank offers multiple types of salary accounts to suit the needs of all types of corporate. The
salary accounts offer various features to the accountholders like free insurance coverage. The
different types of Salary Accounts are:

Premium Salary Account

Regular Salary Account
Defence Salary Account
Salary Family Account
Classic Salary Account
Reimbursement Account
Basic Savings Bank Deposit Accounts Salary

Current Accounts

Current accounts are required by businessmen and professionals who have regular transactions
through the bank. The account deals mainly in liquid deposits and allows unlimited number of
transactions every day like funds being withdrawn or cheques being written against the account
without worrying about the balance in the account. Professionals, traders, SME businessmen,
agricultural businesses can avail various benefits like fund transfers between all HDFC
Accounts, free local collections through cheque and fund transfers as well as easy inter-city
banking. Moreover, the bank also offers a range of Current Accounts to suit individual
preferences like:

ULTIMA Current Account

Supreme Current Account
Apex Current Account
EZEE Current Account
Max Current Account
Agri Current Account
Plus Current Account
Current Account for Hospitals and Nursing Homes
Trade Current Account
Current Account for professionals
Premium Current Account
Merchant Advantage Plus Current Account
Regular Current Account
Merchant Advantage Current Account
Flexi Current Account
Institutional Current Account

Deposits

Individuals who wish to save money for a longer term with a view to earn a higher rate of
interest seek to invest money in term deposit accounts which guarantee higher interest rates.
HDFC Bank also offers various types of deposit accounts promising high interest rates for
customers seeking deposit accounts. Here are the deposit accounts available with the bank:

Regular Fixed Deposit

Recurring Deposit
 5 year Tax Saving Fixed Deposit
Safe Deposit Locker the bank also provides the facility of Safe Deposit lockers for you
to store your valuable deposits. The lockers are available in various sizes at various
locations.
Rural Accounts
Accounts offered by the bank to farmers for their banking needs. there are 2 types of rural
accounts available:
Basic Savings Bank Deposit Accounts Farmers
Kisan Club Savings Accounts

Loans

HDFC bank is a leader in home loan sector and also offers various other kinds of loans at
attractive interest rates for various needs of the individuals. The following types of loans are
available with the bank:

Personal Loan Business Loan

Home Loan Car Loans

Two-Wheeler Loans Gold Loan

Loan against Assets Educational Loan

 Government Sponsored Programs Rural Loans

Card Services

In todays competitive and fast time card services providing by the banks are really very
important to every person and every business needs or to take meal in to the hotel or to purchase
jewellery from the jewellery shops cards are playing good role in the banking sectors.

Bank ranges of Cards help to meet financial objectives. So whether persons are looking to
add to his buying power, conducting cashless shopping, or budgeting his expenditure, he will
find a card that suits him.

Credit cards

The bank has a wide range of credit cards for customers which promise special offers and
privileges on dining, movies, lounge access of airports, etc. The cards also offer Reward Points
on every spending made by the cardholder which can be redeemed for attractive offers. The
range of Credit Cards offered by the bank are as follows:

Super Premium Cards-There are 3 variants under the Super Premium Variety which are:
 Infinia
Regalia
Diners Club Black

Co-Brand Credit Cards- These cards are offered in partnership with Jet Airways and Times
Group which offer special discounts on airline travel through Jet Airways and offers on dining
and movie tickets. The range of co-brand cards includes:

Jet Privilege HDFC Bank World

Jet Privilege HDFC Bank Platinum
Platinum Times Card
Titanium Times Card

Professional Credit Cards- Credit cards issued specifically to professionals like Doctors and
Teachers with best lounge programs and freedom to fill fuels across any fuel s respectively. The
cards come in two variants:
Doctors Superia
Teachers Platinum

Premium Travel Cards- These cards are specially designed to offer travel related benefits and
discounts. The cards offer reward points which can be redeemed against air tickets or against
dining and also lounge access of airports. The range includes:

Superia
AllMiles
Cash back cards- The specialty of these cards is that the card promises cash back on everyday
spends in the form of Reward Points which can be redeemed to get cash back and also zero fuel
surcharge. The range of cash back cards include:

Platinum Edge
Titanium Edge
Money Back

Premium Cards- Credit cards which offer premium range of offers and discounts on
dining, entertainment and complimentary access to airport lounges. The premium
rage of credit cards include the following types of cards:
World MasterCard
Diners Club Premium
Diners Club Rewardz
Visa Signature

Solitaire- A premium card especially for women customers with exclusive offers and rewards for
females.

Platinum Plus Card- It is a regular credit card designed for regular usage offering Reward
Points on everyday spends and also fuel surcharge waiver.

Commercial Cards- Arange of credit cards especially designed for business usage offering fuel
surcharge waiver, lounge access to airports, travel and entertainment benefits and also air tickets
discounts. The range of business cards include:

Business Platinum
 Business Gold Credit Card
Corporate Platinum
Corporate World MasterCard
Corporate VISA Signature
Corporate Card
Purchase Card
Distributor Card

Debit card

HDFC Bank offers Debit cards with every Savings Account to customers which are safer than
carrying cash because they require a PIN every time they are used, they provide great discounts
and cash back on fuel, shopping, dining, entertainment, etc. and are used across almost all outlets
for payment. The range of debit cards issued by the bank are:

EasyShop Platinum Debit Card

Jet Privilege HDFC Bank World Debit Card
Easy Shop Titanium Royale Debit Card
EasyShop Titanium Debit Card
EasyShop Debit Card
Easy Shop Business Debit Card
EasyShop Womens Advantage Debit Card
EasyShop NRO Debit Card
EasyShop Imperia Platinum Chip Debit Card
EasyShop Gold Debit Card
RuPay Premium Debit Card
Prepaid card

Besides offering convenience, Prepaid Cards have been tailored to answer travel and gifting
needs.

ForexPlus Cards
Prepaid Travel Card.
Gift Plus Cards
Prepaid Gift Card.
Food Plus Cards
Prepaid Food Plus card.
Money Plus Card
The Corporate Payment card

Demat Account

HDFC Bank issues Demat Account for investors like traders, long term investors as well as
beginners for a flexible and customized solution. The demat account offered by the bank is safe
and dependable for buying and storing a customers equity investments, mutual funds, IPOs,
ETF Exchange Traded Funds like Gold and Index, bonds and NCDs. The account can also be
opened online and the types of demat accounts offered are as follows:

Demat Account
2 in 1 Account
3 in 1 account
Investment and Insurance Services

Investments

HDFC bank deals in various investment avenues to complete the financial portfolio of the
customer like Mutual Funds, Life Insurance products and General Insurance Products. The
investment products are further subdivided into the following categories:

Mutual Funds
Equities & Derivatives through HDFC Securities Trading Account
IPO Application through ASBA (Application Supported by Blocked Amount)
Investment in Gold through Mudra Pure Gold Bars which come as 24 Karat pure gold
bars of 5g, 8g, 10g, 20g, 50g and 100g with Assay Certification and tamper proof packing
Investment in Silver through Mudra Silver Bars which are available in 50g and 100g
with Assay Certification and tamper-proof certified packaging.
8% Savings Bond which are risk-free and can be bought with a minimum investment of
Rs.1000
Sec 54 EC Capital Gains Bond with a maximum investment of 50 lakhs and tax
exemption on capital gains
Inflation Indexed National Savings Securities Cumulative (IINSS C) with a
minimum investment of Rs.5000 and a maximum of Rs.5 lakh.

Insurance

HDFC Bank offers both life and non-life products to its customers. The life insurance products
are issued in association with HDFC Life Insurance Company Limited and the non-life insurance
products are issued in association with HDFC Ergo. The following are the heads of insurance
and their respective plans:
Life Insurance

The list of below mentioned plans range from term insurance, endowment insurance and money-
back plans to those of Unit Linked Insurance Plans (ULIPs) for a complete insurance products
basket for customers to choose from. The plans available are:

HDFC Life Click2Protect Plus Plan - an online term insurance plan with varied options
corresponding to benefits payable
HDFC Life Health Assure Plan - a health plan
HDFC Life Cancer Care a health plan specifically designed for diagnosis and
treatment of cancer
HDFC Life Pension Super Plus a pension plan which guarantees income after
retirement
HDFC SL ProGrowth Super II a Unit Linked Plan giving the dual benefit of
insurance and market linked growth for wealth appreciation
HDFC SL YoungStar Super Premium a Unit Linked Child Plan taking care of your
childs future while at the same time giving increased benefits in the form of market linked
returns.
HDFC Life ProGrowth Plus - a unit linked insurance plan
HDFC Life Classic Assure Plus a limited premium life insurance plan with higher
protection option
HDFC Life Super Savings Plan a participating Endowment Assurance plan with built-
in Accidental Death Cover for a comprehensive coverage
HDFC Life Personal Pension Plus a pension plan with lifelong pension option and
guaranteed benefit at maturity
 HDFC SL ProGrowth Flexi - a unit linked savings plan with an option to choose
Accidental Death Coverage
HDFC Life Guaranteed Pension Plan a limited term premium paying annuity plan
with guaranteed lifetime pension payments
HDFC Life New Immediate Annuity Plan an immediate annuity plan wherein the
pension payouts start immediately after payment of the Purchase Price
HDFC Life Smart Woman Plan an award winning insurance cum investment plan
designed for women for covering their life as well as maternity expenses, congenital or
malignant female-specific cancers
HDFC Life Invest Wise Plan a single premium ULIP plan for wealth maximization
without having to pay regular premiums
HDFC Life Single Premium Pension Super Plan a single pay pension plan with
market linked returns and an assured benefit of 101% of premiums paid on vesting or
maturity
HDFC SL Crest a simple insurance plan which can be taken by filling up a Short
Medical Questionnaire
HDFC Life Super Income Plan a participating guaranteed benefits plan which pays
regular incomes in the payout period of 8-15 years
HDFC Life Sanchay a traditional life insurance plan with a limited premium paying
term
HDFC Life YoungStarUdaan a child insurance plan which can be either availed as an
Endowment Plan with lump sum benefit at maturity or money back plan with benefits paid
out in instalments during the last 5 policy years
HDFC SL ProGrowthMaximiser a single pay unit linked plan with no limit on the
maximum premium investment
HDFC Life Click2Invest ULIP a unit linked plan available online
HDFC Life SampoornaSamridhi Plus Plan a limited payment endowment assurance
plan wherein the cover can be extended for up to 100 years
HDFC Life SampoornaNivesh a traditional insurance plan with single, regular or
limited premium paying options
Health Insurance

Health Insurance falls under the purview of general insurance and four types of health insurance
plans are offered by the bank which are as follows:

Health Suraksha a health plan covering hospitalization, pre and post hospitalization
expenses, day care procedures, domiciliary treatment and organ donor expenses. The
coverage can be taken for an individual and also his family with treatments in a network of
4800+ hospitals.
Critical Illness Silver Plan a health plan specifically designed for treatment of critical
illnesses covering 8 critical illnesses in its scope of coverage
Critical Illness Platinum Plan a critical illness plan which covers 15 critical illnesses
and provides the benefit upon diagnosis of the covered illness
Individual Personal Accident Plan II a personal accident plan which can be taken for
self and family and covers hospital expenses, injuries, disability due to accident with a
coverage range of 2.5 lakhs to 15 lakhs
Motor Insurance motor insurance is offered to customers in partnership with HDFC
Ergo and there are two types of motor insurance plans available:
 Commercial Vehicle Insurance it provides comprehensive coverage for your
commercial vehicle across 1600+ network garages in India
Private Car Insurance insurance coverage for your private car with cashless
claims across 1600+ network garages. Moreover, the plan also offers discounts based
on age and occupation

Two Wheeler Insurance an insurance plan for your two-wheeler with a provision of
cashless claim across 1600+ network garages throughout the country.
Travel Insurance an insurance plan for domestic and international travel be it for
business or leisure purposes. The plan covers emergency medical expenses, emergency
medical evacuation, repatriation of remains, emergency dental expenses, hospital cash,
accidental death and permanent total disability while flying in a common carrier, personal
accident, flight delay, loss of baggage and personal documents, delay of checked-in
baggage, personal liability, financial emergency assistance, contingency travel benefits and
hijack distress allowance.
Home Insurance an insurance policy issued to protect the home as well as its contents.
The plan covers risk against fire, lightning, explosion, flood, inundation, storm, riot, strike,
earthquake, terrorism, burglary and theft with coverage for 1-5 years.

FOREX

Now foreign exchange transactions have become easier with HDFC Banks Forex Services. The
bank offers foreign exchange services from currency notes to Travellers Cheques and foreign
travel cards to remittances. So whether the customer is a student travelling abroad for higher
studies or already studying abroad or remitting money for business purposes, HDFC Bank is the
answer to all foreign exchange related services. The bank offers the following types of Forex
services under its purview:
Travel Solutions

Forex facilities are offered through all HDFC Bank branches at competitive rates and charges.
The banks forex travel solutions includes:

Foreign Currency Cash under which foreign currency can be bought from any branch.
The bank deals in 22 major foreign currencies and individuals travelling abroad for business
or leisure can carry a maximum of USD 3000 or equivalent in foreign currencies. The limit
can be increased if the individual is visiting certain countries as per the terms and conditions
of the bank.
ForexPlus Card is like a debit card for foreign travel which is accepted at all VISA and
MasterCard Merchant outlets and also can be used to withdraw cash form all VISA or
MasterCard ATMs worldwide. There is also an added benefit of Personal Accident Coverage
of 2 lakhs.
ForexPlus Chip Card is a prepaid travellers card with an embedded chip which stores
encrypted and confidential information making the card more secured and protected against
fraud
ForexPlus Platinum Card is designed exclusively for elite customers with added
features and offers. It offers access to Visas Global Customer Assistance Service, Airport
Lounge Access and 0.5% cash back on all POS transactions.
Multicurrency Platinum ForexPlus card where the customer can manage 21 currencies
on a single card for multi-country travelling. Being a Platinum card the card offers all the
premium services like access to Visas Global Customer Assistance Service and various
offers at merchant locations
 Travellers Cheques is a safe way to carry cash while travelling abroad which prevents
theft and is accepted everywhere.
Remittance Products They can be availed at all HDFC Branches and HDFC Banks
Remittance Products include:

Remittances which assure speedy delivery and receipt of money globally and
includes telegraphic transfers, inwards remittances and outward remittances.
Foreign Currency Demand Drafts which have a lower charge structure than
remittances and are issued in 11 foreign currencies payable at the respective locations.
The currencies include AUD, CAD, USD, NZD, HKD, SGD, CHF, GBP, EUR, JPY, and
TRY. The Demand drafts also protect against foreign exchange related volatility.
Foreign Currency Cheque Collection with a choice of multi-currency and lock
box facility.

Other Forex Services like Cash to Master which is a service for foreign ships docking
at Indian ports where cash can be picked up from any branch near the port.
Forex Help which provides services like showing the current days forex rates, providing
the correspondent bank details and showing the Foreign Exchange Limit..

PAYMENT SERVICE

Nowadays life of a person become very stressful and he/she becoming busy with their own
business, but they have to payment for something so for that reason banks payment services
become started. With HDFC Bank's payment services, person can bid goodbye to queues and
paper work. Banks range of payment options make it easy for pay for a variety of utilities and
services.

Verified By Visa
Do you want to be worry free for your online purchases?

Now you can shop securely online with your existing Visa Debit/Credit card.

Net Safe

Now shop online without revealing your HDFC Bank Credit Card number. What more, you can
now use your HDFC Bank Debit Card also for online purchases.

Merchant Services

Accept all Visa, MasterCard, credit and Debit cards at your outlets through state of the art POS
Machines or through your website and experience hassle free payment acceptance.

Prepaid Mobile Refill

If you are an HDFC Bank Account holder, you can now recharge your Prepaid Mobile Phone
with this service.

Bill Pay

Pay your telephone, electricity and mobile phone bills at your convenience. Through the Internet,
ATMs, your mobile phone and telephone - with Bill Pay, our comprehensive bill payments
solution.

Visa Bill Pay

Pay your utility bills from the comfort of your home! Pay using your HDFC Bank Visa credit
card and forget long queue and late payments forever
Pay Now

Use your HDFC Bank Credit Card to pay your utility bills online, make subscriptions and
donations; no registration required. Enjoy credit free period and reward points as per your credit
card features.

Insta Pay

Pay your bills, make donations and subscribe to magazines without going through the hassles of
any registration.

Direct Pay

Shop or Pay bills online without cash or card. Debit your account directly with our Direct Pay
service!

Visa Money Transfer

Transfer funds to any Visa Card (debit or credit) within India at your own convenience through
HDFC Bank's Net Banking facility.

e-Monies National Electronic Funds Transfer

Transfer funds from your account to other Bank accounts across India - FREE of cost.

Online Payment of Excise & Service Tax

Make your Excise and Service Tax payments at your own convenience through HDFC Bank's
Net Banking facility.

Religious Offerings

Now donate to your favourite temple easily and securely using HDFC BANK's Net Banking .
IMPERIA/PREFERRED/CLASSICBANKING

As a special customer bank providing a TAJ to customer with name imperia/preferred customer.
For that bank provide a special service to their customer. HDFC Bank's preferred/imperia
Programme is the royal decree that enhances the exclusivity that you are accustomed to. It makes
you feel special at every step, pampering with services those others can only dream about. This
service goes beyond the obvious, rises above the expected, so that the whole world can see, that
even today, the grandeur and magnificence of royalty is alive and well.

Thus as retail banking service bank providing really good and beneficial services to their
customer and as family member they are providing good services to every customer either they
are came business related or anything. So for this reason HDFC bank playing a good role in the
customers life for their monitory transaction.

NRI BANKING

It can be in the form of Savings, Current or Fixed Deposits in Indian Rupees. The funds in this
account are not repatriable (only interest accrued is repatriable).

FCNR (Foreign Currency Non Resident Accounts)

It can be in the form of fixed Deposits only, in the five major currencies, namely US Dollars,
GBP, DM, Euro, and Japanese Yen. The funds in this account are fully repatriable
With a view to attract the savings and other remittance into India through banking channels from
the person of Indian Nationality / Origin who are residing abroad and bolster the balance of
payment position, the Government of India introduced in 1970 Non-Resident(External) Account
Rules which are governed by the Exchange Control Regulations.

The funds held in Non-Resident (External) Accounts (NRE Accounts) qualify for certain benefits
like exemptions from taxes in India, free repatriations facilities, etc.

Deposit types

NRI-Banking facilitates the NRI customer to open the following account types.

NRE (Non Resident External Accounts)

It can be in the form of Savings, Current or fixed deposits in Indian rupees. The funds in this
account are fully repatriable.

NRO (Non Resident Ordinary Accounts)

WHOLESALE BANKING

Wholesale banking is the provision of services by banks to the like of large corporate clients,
mid-sized companies, real estate developers and investors, international trade finance businesses
and institutional customers, such as pension funds and government entities/agencies. Also
included is banking services offered to other financial institutions. In essence, wholesale banking
services usually involve high value transactions. Wholesale banking compares with retail
banking, which is the provision of banking services to individuals.

Wholesale banking services

 Corporate service

Corporate Banking reflects HDFC Bank's strengths in providing our corporate clients in India, a
wide array of commercial, transactional and electronic banking products. We achieve this
through innovative product development and a well-integrated approach to relationship
management.

Large Corporate
Supply Chain Partners
Agricultural Lending
Small & medium term enterprises

HDFC Bank understands how much of hard work goes into establishing a successful SME.
Bank also understands that business is anything but "small" and as demanding as ever. And as
business expands and enters new territories and markets, person need to keep pace with the
growing requests that come in, which may lead to purchasing new, or updating existing plant and
equipment, or employing new staff to cope with the demand. That's why HDFC Bank has
assembled products, services, resources and expert advice to help ensure that your business
excels.

The following links will help identify individual needs.

Funded Services.
Non-Funded Services.
Specialized Services.
Value Added Services.
Internet Banking.

Financial institutions & trusts

Banks.
Financial Institutions.
Mutual Funds.
Stock Brokers.
Insurance Companies.
Commodity Businesses.
Trusts.

Government sector
HDFC Bank acts as an active medium between the government and the customers by means of various
services. These services include:

Tax Collection wherein customers can directly pay their taxes like Direct taxes, Indirect taxes and
Sales Tax collections at their local HDFC Bank.
E-Ticketing - Helps the customer by providing him a direct access to book a Railway Ticket
online and get it home delivered.
Opening of L/C's is done by the bank on behalf of Government of India, Mints and Presses, thus
facilitating imports for the Government.
Collection of levies and taxes on behalf of Municipal Corporations i.e. Kalyan -Dombivli
Municipal Corporation, is undertaken by the Bank.
Collection of stamp duty is done via franking mode in the state's of Maharashtra & Gujarat.
The Stamp Duty Franking Facility is available at following branches in Maharashtra Fort,
Chembur, Lower Parel, Mira Road, Thane (TalaoPali), Panvel, Ratnagiri, Pune(FC Road),
Kolhapur, Nagpur, Pimpri.
The Stamp Duty Franking Facility is available at following branches in Gujarat
Disbursement of Pension to retired Employees of Central Govt and Defence is directly done by
HDFC Bank along with the disbursement of pension to the members of EPFO (Employees
Provident Fund Organisation).
Electronic Collection of fees on behalf of DGFT is done by the bank too.
 SWOT ANALYSIS

SWOT Analysis is a powerful technique for understanding your Strengths and Weaknesses, and
for looking at the Opportunities and Threats you face. Used in a business context, it helps you
carve a sustainable niche in your market. Used in apersonal context, it helps you develop your
career in a way that takes best advantage of your talents, abilities and opportunities.
SWOT ANALAYSIS OF HDFC BANK

STRENGTH

Right strategy for the right products.

Superior customer service vs. competitors.
Great Brand Image
Products have required accreditations.
High degree of customer satisfaction.
Good place to work
Lower response time with efficient and effective service.
Dedicated workforce aiming at making a long-term career in the field.

WEAKNESSES

Some gaps in range for certain sectors.

Customer service staff needs training.
Processes and systems, etc
Management cover insufficient.
Sectoral growth is constrained by low unemployment levels and competition for staff

OPPORTUNITIES
 Profit margins will be good.
Could extend to overseas broadly.
New specialist applications.
Could seek better customer deals.
Fast-track career development opportunities on an industry-wide basis.
An applied research centre to create opportunities for developing techniques to provide
added-value services.

THREATS

Legislation could impact.

Great risk involved
Very high competition prevailing in the industry.
Vulnerable to reactive
attack by major competitors
Lack of infrastructure in rural areas could constrain investment.
High volume/low cost market is intensely competitive.

KEY POINT

SWOT Analysis is a simple but powerful framework for analyzing company's Strengths and
Weaknesses, and the Opportunities and Threats you face. This helps you to focus on your
strengths, minimize threats, and take the greatest possible advantage of opportunities available to
you .

OBJECTIVE

To know how much banking credit services has been improved in HDFC.
To know the impact of credit facility.
To study the satisfaction level of the respondent.
 To know the worthiness of credit facility given to the customer .

RESEARCH METHODOLOGY

Every research work is based on certain methodology, which is a way to systematically solve the
problem or attain its objectives. It is a very important guideline and lead to completion of any

project work through observation, data collection and data analysis.

Research in common parlance refers to a search of knowledge. One can also define research a

scientific search for pertinent knowledge or information on a specific topic.This is a systematic

and objective identification, collection data, analysis, dissemination and use of information for

the purpose of assisting management in decision making related to identification and solution of

problem in the market.

According to Kothari there are two approaches in research methodology First one is qualitative

and second one is quantative. This research works on quantative approach, which is reliable and

beneficial in this type of project In quantitative data collection or research, we seek to quantify

the data and typically apply some form of statistical research or analysis. Qunatitaive research

applies to quantify the data and generalized the result from the sample to the population of

interest In this research a large number of samples of representative cases are taken, the method

of data collection is structured. This project is based on various types of secondary data, and

Primary (Followed sampling method with sample size of 50) data which are authentic and

collected from various authorized sources.

There are two types of data namely primary data and secondary data .Primary data refers to those

data that are collected newly and they are not used earlier . The researcher has to gather primary

data freshly for the specific study undertaken by him The primary data can be collected by three

methods namely observation method, experimentation method and survey method. Survey

research is the systematic gathering of data from respondent through questionnaires. Secondary

data refers to those data which were gathered for some other purpose and are already available in

the firms internal records and commercial trade or government publication .

 RESEARCH DESIGN

Descriptive research is a study designed to depict the participants in an accurate way. More
simply put, descriptive research is all about describing people who take part in the study .A study
comes in different flavours, be it interviewing people face to face or handing out questionnaires

to fill out. Surveys are useful because instead of spending weeks observing the people you

directly ask them about themselves. Descriptive study can involve a one-time interaction with

groups of people This is where research is trying to describe what is happening in more detail,

filling in the missing parts and expanding our understanding. This is also where as much

information is collected as possible instead of making guesses or elaborate models to predict the

future- the what and how, rather than the why.

Sampling Design:

For my survey I have used Convenience sampling technique.

Convenience sampling is a non-probability sampling technique where subjects are selected

because of their convenient accessibility and proximity to the researcher.

SAMPLE SIZE - Sample of 100 people was taken in order to conduct the research.

UNIVERSE -In accordance to the specified research universe is Lucknow city.

Sources of Data Collection:

PRIMARY DATA is the data which has been collected through personal contact.

Through Questionnaire Questionnaire is a written set of questions, the answers

to which are recorded by the respondents.
 Observation observation were done during the visit to the organisation .

SECONDARY DATAis the data which are available in the form of fact and figures.The sources of
secondary data are:

Websites
Magazines
Articles

Statistical tools

For my survey I have used Pie chart, Graphs.

Methods of Data Collection:

For my survey I have collected data through Questionnaire.

DATA ANALYSIS AND INTERPRETATION

Q1- What type of account do you have in HDFC Bank ?

option percentage

Saving account 48.2

Current account 40%

Salary account 10%

Other 1.8%

10% 2%

48% saving account

40% current account
salary account
other

INTERPRETATION
On the above analysis we found that 48% respondent have an saving account on HDFC
Bank .
We found that 40% respondent have a current account on HDFC Bank.
We found that 10% respondent have a salary account on HDFC Bank .
We found that 2% respondent have other type of account in HDFC Bank .
Q2- Since how long you are having account in HDFC BANK ?

option percentage

0-1 year 20%

1-2 year 30%

2-3 year 15%

3 year & above 35%

20%
35%
0-1 year
1-2 year
30%
15% 2-3 year
3 hyear & above

INTERPRETATION

On the above analysis we found that 0-1 year account holders are 20% in HDFC Bank .
We found that 1-2 year account holders are 30% in HDFC Bank .
We found that 2-3 years account holder are 15% in HDFC Bank .
We found that 3 year & above account holders are 35% in HDFC Bank .
 Q3- From where you get to know about HDFC Bank ?

option percentage

TV advertisement 40%

Words of mouth 20%

Hoardings 30%

other 10%

10%

40%
30% TV advertisement
Words of mouth
Hoardings
20%
Other

INTERPRETATION

On the above analysis we found that 40% respondent know about the HDFC Bank by TV
advertisement .
We found that 20% respondent know about the HDFC Bank by Words of mouth.
We found that 30% respondent know about HDFC Bank by Hoardings.
We found that 10% respondent know about HDFC Bank by Other.
 Q4- What do you think about the document proceeder of HDFC Bank ?

option percentage

Excellent 10%

Very Good 20%

Good 40%

Average 25%

Poor 5%

5% 10%
25%
20% Excellent
Very good
good
40% Average
Poor

INTERPRETATION

On the above analysis we found that 10% respondent says that the document proceeder of
HDFC Bank Excellent.
We found that 20% respondent says that the document proceeder of HDFC is Very good.
We found that 40% respondent says that the document proceeder of HDFC Bank is Good.
 We found that 25% of respondent says that the document proceeder of HDFC Bank is
average.
We found that 5% respondent says that document proceeder of HDFC Bank is Poor .

Q5- Are you satisfied with the terms and condition required by HDFC Bank ?

option percentage
Yes 60%

No 40%

40%

60% Yes
No

INTERPRETATION

On the above analysis we found that 60% of respondent are satisfied with the terms and
condition required by HDFC Bank .
 We found that 40% of respondent are not satisfied with the terms and condition required
by HDFC Bank .

Q6- For which type of loan you applied from HDFC Bank ?

option percentage

Home loan 15%

Education loan 25%

Vehicle loan 30%

Business loan 20%

Personal loan 10%

10% 15%
20% Home loan
25% Education loan
Vehicle loan
30% Business loan
Personal loan

INTERPRETATION

On the above analysis we found that 15% of respondent are apply for a Home loan from
HDFC Bank.
We found that 25% of respondent are apply for Educational loan from a HDFC Bank.
 We found that 30% of respondent are apply for a vehicle loan from a HDFC Bank.
We found that 20% of respondent are apply for a Business loan from a HDFC Bank.
We found that 10% of respondent are apply for a personal loan from a HDFC Bank.

option percentage
Yes 70% Q7- Did you get the amount of loaning as
much you applied ?
No 30%

30%

Yes
70%
No

INTERPRETATION
 On the above above analysis we found that 70% of respondent get the amount of loaning
as much they applied form HDFC Bank.
We found that 30% of respondent does not get the amount of loaning as much they
applied from a HDFC Bank.
option percentage
Yes 55%
Q8- Are you satisfied from interest rates ?
No 45%

45%
55%
Yes
No

INTERPRETATION

On the above we found that 55% of respondent are satisfied from the interest rate of
HDFC Bank.
We found that 45% of respondent are not satisfied from the interest rate of HDFC Bank.
option percentage
Yes 65% Q9- Do you enjoy credit facility?
No 35%

35%

65% Yes
No

INTERPRETATION

On the above analysis we found that 65% of respondent are enjoy credit facility provided
by Bank.
We found that 35% of respondent are not enjoy credit facility provided by Bank.
 option percentage
Q10- The presence of the Bank changed
Yes 60%
the social life of the community?
No 40%

40%

60% Yes
No

INTERPRETATION

On the above analysis we found that 60% of respondent are agree with the bank changed
the social life of the community.
We found that 40% of respondent are not agree with the bank changed the social life of
the community.
Q11- What problems do you face when sanctioning credit?
option percentage

Lack colletral 30%

Insufficient 40%
information

Lack guarantors 30%

30% 30%

Lack colletral
Insufficient information
40% Lack guarantors

INTERPRETATION

On the above analysis we found that 30% of respondent are lack colletral when
sanctioning credit.
We found that 40% of respondent are get insufficient information when sanctioning
credit.
 We found that 30% of respondent are lack guarantors when sanctioning credit .
option percentage

1-2 weeks 50%

1-2 month 30% Q12- How long does it customer

2-3 month 20% to receive credit?

20%

50%
1-2 weeks
30% 1-2 month
2-3 month

INTERPRETATION

On the above analysis we found that 50% of respondent receive credit with in a 1-2
weeks.
We found that 30% of respondent receive credit with in a 1-2 month.
 We found that 20% of respondent receive credit with in a 2-3 month.
option percentage
Yes 70%
No 30%

Q13-Are you satisfied from the credit

facility provided by HDFC Bank?

30%

Yes
70%
No

INTERPRETATION

On the above analysis we found that 70% of respondent are satisfied from the credit
facility provided by HDFC Bank.
 We found that 30% of respondent are not satisfied by the credit facility provided by
option percentage HDFC Bank .

Yes 60%
No 40%

Q14- Will you like to take again credit facility from the HDFC Bank?

40%

60% Yes
No

INTERPRETATION

On the basis of above analysis we found that 60% of respondent are like to take again
credit facility by the HDFC Bank.
 We found that 40% of respondent are not like to take again credit facility by the
HDFC Bank.

Q15- What rank will you give to HDFC Bank ?

option percentage

Excellent 25%

Very Good 25%

Good 20%

Average 20%

Poor 10%
 10%
25%
20% Excellent
Very good
Good
20% 25%
Average
Poor

INTERPRETATION

On the basis of above analysis we found that 25% of respondent Give excellent rank
to the HDFC Bank.
We found that 25% of respondent give very good rank to the HDFC Bank.
We found that 20% of respondent give good rank to the HDFC Bank.
We found that 20% of respondent give average rank to the HDFC Bank.
We found that 10% of respondent give poor rank to the HDFC Bank.

FINDINGS

Credit facilities of HDFC Bank are improved.

Credit facility is also change the social life of the community.
Document proceeder of HDFC Bank is easy and fast.
HDFC gives loan against vehicle easily .
 Maximum numbers receive their amount of loan as much they applied.
Interest rate of HDFC bank is convenient.
Customer face problem of insufficient information when sanctioning

credit.
Customer of HDFC Bank mostly receive the amount of loan with in a 1-

2 week.
Most of the customers are satisfied with the credit facility provided by

the bank.
We found that the customer of HDFC who is taking the credit facility by

the bank are ready to take again credit from the HDFC bank.

CONCLUSION

From the report we have come to the conclusion that Credit facility provided by the
HDFC is providing good its customer good credit facility . The Bank is performing well
and customer rated as very good in terms of credit facility. HDFC maintain is consistency
in facility and services customer are also satisfied with its interest rate and it is affordable
by most of the customer and some of the customer are not satisfied with the interest rate .
And the document proceeder of HDFC Bank is take more time .

After the survey we get that Bank has a good position & provides good credit facility .
Summarising all pointswe conclude that HDFC is maintaining very relationship with
their customers & providing good credit facility with great satisfaction.
 LIMITATIONS

There are certainlimitation of this project which are listed below

This study is limited only to the customers of the HDFC Bank lucknow.
The responses of the customer may bebiased .
Sample size is limited to 100.
It was convenience sampling.
Summer training program was only 8 weeks so, it was not possible to make full study on
the topic .
Bank does not provide full information about the bank as that could violate data
protection act .

RECOMMENDATION

HDFC bank should decrease their interest rate .

Improve the system of document proceeder .
Should improve the time of sanctioning loan amount.
Improve their credit facility.
 HDFC should advertise their schemes of credit facility.
Gives more information about the schemes to their customer .

BIBLOGRAPHY

BOOKS

Maheswari.S.N, and Paul R.R (2003), Banking and Financial Services, Kalayani
Publisher, New Delhi.
Rangarajan .c, Innovation in Banking: The Indian Experience impact on Deposits and
credit, Oxford & IBH Publishers Co, New Delhi, pp.32-38.
Kotler ,Keller, Koshy, Jha, Marketing Management Pearson Education Twelfth
edition.
Renu Sobti, , Banking and Financial Services in India: Marketing Redifined by 2003,
New century publications, New Delhi, 2003.

WEBSITE LINKS

www.hdfc.com
https://en.wikipedia.org/wiki/HDFC_Bank
www.scribd.com
http://www.slideshare.net/
 QUESTIONNAIRE

NAME

GENDER..

AGE
OCCUPATION......

EMAIL ID

Q1. What type of account you have in HDFC Bank?

Savings account Current account

Salary account other (please specify) _____

Q2. Since how long you are having account in HDFC Bank?

0 1 year 1 2 years

2 - 3 years 3 years & above

Q3. From where you get to know about HDFC Bank ?

TV advertisement Words of mouth

Hoardings other

Q4. What you think about the document proceeder of HDFC Bank ?

Excellent Very good

Good Poor

Cant say

Q5. Are you satisfied with the terms and condition required by HDFC bank?

Excellent Very good

GOOD Poor
 Cant say

Q6. For which type of loan you applied from HDFC BANK ?

Home loan Educational loan

Vehicle loan Business loan

Personal loan

Q7. Did you get Amount of loaning as much you applied ?

Yes No

Q8. Are you satisfied with Interest rates ?

Yes No

Q9. Do you enjoy credit facilities from Bank ?

Yes No

Q10. The presence of the Bank changed the social life of the community ?

Yes NO

Q11. What problems do you face when sanctioning credit ?

Lack Colletral Insufficient information

Lack guarantors
Q12. How long does it take customer to receive credit ?

1-2 weak 1-2 months

2-3 months

Q13. Are you satisfied from the credit facility provided by HDFC Bank ?

Yes No

Q14. Will you like to take again credit facility from the HDFC Bank ?

Yes No

Q15. What Rank will you like to give HDFC BANK?

Excellent Very good

Good Poor

Cant say

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