BUSINESS STRATEGY PROJECT

Submitted by,
I.Radha Mani 18BSPHH01C0948

S Sai Ajith 18BSPHH01C1065

Laxmi Deepak 18BSPHHO1C0636

Kushagra 18BSPHHO1C0619

Prashant 18BSPHH01C0890
Explain the strategy of credit Management for HDFC bank for
financial year 2020 to 2025 considering their corporate goals?
Vision: To be the customer driven best managed enterprise that enjoys market
leadership in providing house related finance

Mission: HDFC banks mission is to be a “World class Indian Bank”,

benchmarking themselves against international standards and best practices in
terms of product offerings, Technology, service levels, Risk Management and audit
and compliance.

Corporate Goals:

• To develop close relationship with individual households

• To maintain its position as the premiere housing finance institution in
the country.
• To transform ideas into variable and creative solutions.
• To provide consistently high returns to stake Holders.
• To grow through diversification by leveraging off the existing client
base.

Credit Management at HDFC Bank:

The bank would have loan application forms for retail advances and credit cards.
These would include information about the fees/charges, if any, payable for
processing, the amount of such fees refundable in the case of non acceptance of
application, pre-payment options and any other matter which affects the interest of
the borrower, so that a meaningful comparison with that of other banks can be
made and an informed decision can be taken by the borrower.

The bank would give an acknowledgement for receipt of all retail loan
applications. Time-frame within which loan applications will be processed would
be indicated in the acknowledgement of such applications.

The bank would verify the loan applications within a reasonable period of time. If
additional details / documents are required, it would intimate the borrowers
immediately.
In the case of all borrowers seeking loans, the bank would convey in writing, the
main reason/reasons which, in the opinion of the bank after due consideration,
have led to rejection of the loan applications. In case the proposal does not meet
the internal risk parameters of the bank, the borrower would be intimated
accordingly.

Findings:

Project findings reveal that HDFC is sanctioning less Credit to agriculture, as

compared with its key competitor’s viz., Canara Bank, Corporation Bank,
Syndicate Bank

Recovery of Credit: HDFC Bank recovery of Credit during the year 2018 is
62.4% Compared to other Banks HDFC‘s recovery policy is very good, hence this
reduces NPA
Total Advances: As compared total advances of HDFC is increased year by year.
HDFC Bank is granting credit in all sectors in an Equated Monthly Installments so
that anybody can borrow money easily
Project findings reveal that HDFC Bank is lending more credit or sanctioning more
loans as compared to other Banks.
HDFC Bank is expanding its Credit in the following focus areas:
1. HDFC Term Deposits
2. HDFC Recurring Deposits
3. HDFC Housing Loan
4. HDFC Car Loan
5. HDFC Educational Loan
6. HDFC Personal Loan
7. HDFC Loan against property etc.

In case of indirect agriculture advances, HDFC is granting 3.25% of Net Banks

Credit, which is less as compared to Canara Bank, Syndicate Bank and
Corporation Bank. HDFC has to entertain indirect sectors of agriculture so that it
can have more number of borrowers for the Bank.

HDFC’s direct agriculture advances as compared to other banks is 9.47% of the

Net Bank’s Credit, which shows that Bank has not lent enough credit to direct
agriculture sector.
Credit risk management process of HDFC used is very effective as compared with
other banks.

The Above Mentioned process is followed till date but in the future due to the vast
growth or use of Artificial intelligence, Block chain technology in the vast sectors
the senior management at HDFC will also start implementing the usage of AI in
the credit management this makes the process of applying the loan very simple
because when the customer applies for the loan they need not be required to wait
till the loan is processed and it also makes the process very simple easy and
convenient and For the Bank this is very cost saving as the human man power will
be lay off since AI came to picture and also the bank can position themselves as
Tech savy. All the loan appraisals will be calculated by the systems itself .

Explain the strategic leadership style of Aditya puri & Deepak

Parekh to align the 7S framework of HDFC bank till inception?
Strategic Leadership style of Mr. Aditya Puri:

Aditya Puri is the Managing Director of the India’s largest private sector bank. He
joined his position in September 1994 is currently the longest serving head of any
private bank in the country. Aditya Puri’s name has been featured in the list of
world top 30 CEO’s published by American Financial Magazine.

Mr.Puri’s leadership style was based on 3 distinct points and they are:

• Providing Vision
• Teamwork
• Walk the talk
The above three points have formed the core of his leadership style. According to
him every person should understand the vision, believes in the values that the
company stand for and finally deliver what they have promised.
Aligning to the 7s framework Mr. Puri’s style can be categorized by:

➢ Structure: The core of Mr. Puri’s leadership style can only be achieved
by the management structure which is decentralized where the job
descriptions has been clearly mentioned and the front office is being
backed by the back office.
➢ Style: Mr. Aditya Puri has been a hands-on-leader. For example while at
branch he would personally talk to the customers and make sure that they
are satisfied which are rarely seen in top positions of the company.
➢ Systems: Mr. Puri underlying focus was always been operational
efficiency, that’s why he was the guy who drove very well. He had the
best skilled people among the company employees to assemble the things
for him to do in order to be more efficient.
➢ Staff: Mr. Puri was a person who makes his employee do whatever he
wants but he was also an extremely hard task master. He often give
opportunities for experiments and he stands for his people even when
they make mistakes but know that the decision taken by them were right.
➢ Shared Values: Mr. Puri’s ethical sense were very straightforward.
There were certain things which according to him employees shouldn’t
do and if they do they should be removed immediately with no further
discussions and apologies.
➢ Strategy: Mr. Puri’s strategy was based on the previous discussed 3
points of providing vision, teamwork and walks the talk.
➢ Skills: Professionalism, Innovation, Team spirit and Pragmatism
Integrity were 4 focused skills which Mr. Puri wanted for his employees
to have.

Strategic Leadership style of Deepak Parekh:

Deepak Parekh is the chairman of Housing Development Finance Corporation,

India. This company is Mumbai based. He have worked at several other firms
like Ernst & Young, Grindlays Bank, and Chase Manhattan Bank as its assistant
representative for South Asia. He joined HDFC in year 1978. In the year 2006 he
was awarded with the Padam Bhushan. Parekh Always believe in the correctness
of doing business and he make sure his importance is felt and that is why is one of
the go-to man for forming any policies. He always ensures that neither he nor the
people he meet should ever forget the importance of clean business. Parekh life is
not only about work and work by his hectic schedule he always takes a time out to
address young guns and He never misses Wimbledon matches or the cricket world
cup final.

Leadership style align with 7s Framework:

1: Strategy: Deepak Parekh focused on three key things they are:

• Vision: Parekh always believed that no matter how much hard work u put it
until and unless a leader has a sight the goals it can’t be achieved.
• Entrepreneurship: He believes that there as to be a entrepreneurship skills
required to grow and also to take risk at a given point of time.
• Astute Leadership: According to Parekh a leader should be a far-sighted
person and should assess situation wisely.
2. Structure:The whole idea of Parekh leadership structure is to be approachable
to people as he believes that efficiency can be achieved by an individual if he can
easily approach his superior for any help no matter in whatever context.

3. System:Parekh always focus on the relationship building system within the

organization and that in return will hep in achieving operational efficiency.

4. Shared values: Parekh feels the best way to do business is to do clean business
and he makes sure that he as well as the person who he meets should be involved
in the clean way of doing business. He always says that the best quality that a
leader should have is honesty and this is the most important thing according to
him.

5. Style: Deepak Parekh always try to find time to address the young guns as he
believes that a leader should always learn new things which in deed will help him
to grow and what is better than knowing what young people thinks.

6. Skills: According to Parekh a leader should have certain skills in order to help
its people to grow and these skills are a leader should be far-sighted and should
have the skills to assess the situation correctly and take required action in order to
handle that situation.

7. Staff: Parekh is a people’s person he is very friendly and approachable to its

people and is always open for new ideas. He loves to spend time with his people
and discuss new things to them and always try to know their perspective in that
situation.