CH:1

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 INTRODUCTION HDFC BANK

Incorporated in August 1994 as HDFC Bank Limited, as of December

31, 2006, the bank had a India network of 684 branches in 316 cities in India and over
1663 ATM's.

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.

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 HISTORY OF HDFC BANK
The Housing Development Finance Corporation Limited (HDFC 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. We commenced operations as a Scheduled Commercial Bank on 16 th January
1995. The bank has grown consistently and is now amongst the leading players in the
industry.

In a milestone transaction in the Indian banking industry, times bank

was merged with HDFC Bank Ltd, effective February 26, 2000. The amalgamation
added significant value to HDFC Bank in terms of increased branch network, expanded
geographic reach, enhanced customer base and skilled manpower.

On 20 th July 2001, our bank’s American depository shares began

trading on the New York stock exchange under the symbol “HDB”. Subsequent to that
the bank came out with add on ADS offering on 21 ST January 2005. 19.46% of the
equity shares of the bank are held in ADS.

54
 MISSION OF THE BANK

Use Enabling technology to provide valued adds products and services to

customers. The objective is to build sound customer franchises across distinct
businesses so as to be the preferred provider of banking services for target retail and
wholesale customer segments and to achieve healthy growth in profitability, consistent
with the bank’s risk appetite.

The bank is committed to maintain the highest level of ethical

standards, professional integrity, corporate governance and regulatory compliance.
HDFC Bank’s business philosophy is based on four core values – operational
Excellence, customer focus, product leadership and people.

54
 Registered Office: Corporate Office:

Address Address

HDFC Bank House Ramon House, 169, Back Bay

Senapati Bapat Marg Lower Parel Reclamation

Mumbai H T Parekh Marg

Maharashtra Church Gate

400013. Mumbai 400 020.

Phone: 91-022-56521000

Fax: 91-022-24960737

Bhavnagar Branch

HDFC BANK LTD.

Plot-5, Gr. Floor,

Opp. Chitra Petrol Pump,

Bhavnagar – 364002

Websites

www. hdfc.com;

www. hdfcbank.com

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 VISION STATEMENT OF HDFC BANK

The HDFC Bank is committed to maintain the highest level of ethical

standards, professional integrity and regulatory compliance. HDFC Bank’s business
philosophy is based on four core values such as:-

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

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.

54
 BOARD OF DIRECTORS

PERSON DESIGNATION

Mr. Jagdish Capoor Vice President

Mr. Aditya Puri Managing Director

Mr. Keki M. Mistry Director

Mr. Vineet Jain Director

Mr. Ashim Samanta Director

Dr. Venkat Rao Godwal Director

Mr. Arvind Pande Director

Mr. Bobby Parikh Director

AWARDS AND ACHIEVEMENTS

54
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.

IN 2007

The Asian Banker Achievement Awards. The Asian Banker Leadership

Achievement Award.

IN 2006

Business Today Best Bank in India.

Forbes Magazine
Business world
The Asset Magazine's
Triple A Country Awards
Asia money Awards
One of Asia Pacific's Best 50 companies.
Best listed Bank of India.
Best Domestic Bank.
Best Local Cash Management Bank in Large and
Medium segments.

The Business Today-KPMG Survey published in the leading Indian business magazine
Business Today has named HDFC Bank "Best Bank in India" for the third consecutive
year in 2005.

ORGANIZATIONAL OBJECTIVES & GOALS

54
The main objectives of HDFC are divided into two parts, which are as under:

1. First and foremost objective is to enhance residential housing stock in the

country through the provision of housing finance in a systematic and professional
manner, and to promote home ownership.
2. Second objective is to increase the flow of resources to the housing sector by
integrating the housing finance sector with the overall domestic financial
markets.

HDFC’s main goals are:

A) To develop close relationships with individuals households.

B) To maintain it’s position as the premier housing finance institution in the country.
C) To transform ideas into variable and creative solutions.
D) To provide consistently high returns to shareholders.
E) To grow through diversification by leveraging off the existing client base

ORGANIZATIONAL CULTURE & VALUES

54
HDFC Bank has an open ands informal culture. HDFC Bank has value integrity,
commitment and teamwork and excellence in customer service. HDFC adopts a policy
of “learning by doing “which encourages decision making as well as learning from doing.

As HDFC Bank continue to grow rapidly in spite of the competitive market scenario,
young professionals opting to make a career with HDFC Bank today will find more
challenging and exciting opportunities to contribute and grow with them.

If you are young, talented individual who enjoys challenges, has a passion to excel and
can fit into our organizational culture & value system, you could be a part of learning
and growing team of professionals at HDFC Bank.

HDFC Bank has always been market-oriented and dynamic with respect to resource
mobilization as well as its lending programmed. This renders it more that capable to
meet the new challenges that have emerged. Over the years, HDFC Bank has
developed a vast client base of borrowers, depositors, share holders and agents, and it
hopes to capitalize on this loyal and satisfied client base for future growth. Internal
systems have been developed to be robust and agile, to take into account changes in
the volatile external environment.

HDFC Bank has developed a network of industries through partnerships with some of
the best institutions in the world, for providing specialized financial services. Each
institution fine tuned for a specific market, while offering the entire HDFC customer base
the highest standards of quality in product design, facilities and services.

VISION STATEMENT OF HDFC BANK

54
The HDFC Bank is committed to maintain the highest level of ethical standards,
professional integrity and regulatory compliance. HDFC Bank’s business philosophy is
based on four core values such as:-

5. Operational excellence.
6. Customer Focus.
7. Product leadership.
8. People.

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.

PRODUCTS OF THE BANK

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  Savings Accounts

These accounts are primarily meant to inculcate a sense of saving for the future,
accumulating funds over a period of time. Whatever your occupation, we are
confident that you will find the perfect banking solution. Open an account in your
name or register for one jointly with a family member today.

 Types of Savings Accounts

(1) Regular
(2) Savings Max
(3) Savings plus
(4) No frills
(5) Family savings
(6) Kids advantage
(7) Pension savings

 Types of Salary Accounts

(1) Classic
(2) Regular
(3) Payroll
(4) Premium

 Current Accounts

Now, with an HDFC Bank Current Account, experience the freedom of multi-city
banking! You can have the power of multi-location access to your account from any of
our 684 branches in 316 cities. Not only that, you can do most of your banking
transactions from the comfort of your office or home without stepping out.

 Types of Current Accounts

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 (1) Regular
(2) plus
(3) trade
(4) premium

 Fixed Deposits

Long-term investments form the chunk of everybody's future plans. An alternative to

simply applying for loans, fixed deposits allow you to borrow from your own funds for a
limited period, thus fulfilling your needs as well as keeping your savings secure.

(1) regular fixed deposits

(2) super saver
(3) sweep in
(4) 5 year tax savings fixed deposits

 Demat Account

HDFC BANK is one of the leading Depository Participant (DP) in the country with over 8
Lac Demat accounts.

HDFC Bank Demat services offers you a secure and convenient way to keep track of
your securities and investments, over a period of time, without the hassle of handling
physical documents that get mutilated or lost in transit.

HDFC BANK is Depository participant both with -National Securities Depositories

Limited (NSDL) and Central Depository Services Limited (CDSL).

 Various Kinds of Loans

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 (1) Personal loans
(2) Hone loans
(3) Two wheeler loans
(4) Car loans
(5) Gold loans
(6) Educational loans

 Cards
Our range of Cards helps you meet your financial objectives. So whether
you are looking to add to your buying power, conducting cashless shopping, or
budgeting your expenditure, you will find a card that suits you.

 Credit Cards

 Special Benefit Cards

(1) Value plus credit card
(2) Health plus credit card
 Debit Cards
(1) Easy shop international debit card
(2) Easy shop gold debit card

 Investment and Insurance

(1) Mutual Funds

(2) Insurance

(3) General & Health Insurance

(4) Bonds

(5) Mudra Gold Bar

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CH: 2

54
 INTRODUCTION OF PRIVATE BANKING
Many may not be familiar with the term "private banking." On the surface you might
think, "isn't all banking private?" Private banking is a blanket term that is used to
describe the personalized attention that a banker or advisor gives to high wealth
individuals. In general, private banking has been viewed as strictly being for those with
very high net worth. However, this opinion is beginning to change. In fact, now it is
possible for those with lower net worth to "get in on the action."

Of course, one is left to wonder how to make the most out of private banking. The
easiest answer is that those who are interested in this type of banking should absolutely
opt for banks with proven track records. This factor should not be overlooked. Clearly,
you want to get the highest yield on your investment. Finding a bank or an advisor with
a proven portfolio only makes sense.

When using private banking for wealth management or investing, it is important that you
know what you are comfortable with ahead of time. If your personality type is such that
you do not feel secure if you are investing in companies or areas that you do not
understand, then you will need to be vocal about this fact upfront. Often having
knowledge and understanding regarding what you are investing in is critical. After all,
you want to be as comfortable as possible.

Let's face it; everything is personal to varying degrees. If you simply don't like the
banker or advisor assigned to you, then you may want to consider moving on. You need
to have confidence in not only the institution that is handling your money, but in the
actual people responsible as well.

At the end of the day, you want your experience with private banking to be as
productive as possible. If you are feeling stressed, you are far less likely to make the
best decisions. You will have the best chance to make the most out of your private
banking experiences if you are confident that you are in trustworthy hands

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 HISTORY OF PRIVATE BANK

Banking in India originated in the last decades of the 18th century. The first banks were
The General Bank of India which started in 1786, and the Bank of Hindustan, both of
which are now defunct. The oldest bank in existence in India is the State Bank of India,
which originated in the Bank of Calcutta in June 1806, which almost immediately
became the Bank of Bengal. This was one of the three presidency banks, the other two
being the Bank of Bombay and the Bank of Madras, all three of which were established
under charters from the British East India Company. For many years the Presidency
banks acted as quasi-central banks, as did their successors. The three banks merged in
1921 to form the Imperial Bank of India, which, upon India's independence, became the
State Bank of India.

Without a sound and effective banking system in India it cannot have a healthy economy.
The banking system of India should not only be hassle free but it should be able to meet
new challenges posed by the technology and any other external and internal factors.

For the past three decades India's banking system has several outstanding achievements
to its credit. The most striking is its extensive reach. It is no longer confined to only
metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even
to the remote corners of the country. This is one of the main reason of India's growth
process
The government's regular policy for Indian bank since 1969 has paid rich dividends with
the nationalisation of 14 major private banks of India.
Not long ago, an account holder had to wait for hours at the bank counters for getting a
draft or for withdrawing his own money. Today, he has a choice. Gone are days when the
most efficient bank transferred money from one branch to other in two days. Now it is
simple as instant messaging or dial a pizza. Money have become the order of the day.

The first bank in India, though conservative, was established in 1786. From 1786 till today,

54
the journey of Indian Banking System can be segregated into three distinct phases. They
are as mentioned below:

• Early phase from 1786 to 1969 of Indian Banks

• Nationalisation of Indian Banks and up to 1991 prior to Indian banking sector
Reforms.
• New phase of Indian Banking System with the advent of Indian Financial &
Banking Sector Reforms after 1991.

To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and
PhaseIII.

PhaseI

The General Bank of India was set up in the year 1786. Next came 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 shareholders banks, mostly Europeans
shareholders.

In 1865 Allahabad Bank was established and first time exclusively by Indians, 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, Canara Bank, Indian Bank,
and Bank of Mysore were set up. Reserve Bank of India came in 1935.

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.
To streamline the functioning and activities of commercial banks, the Government of
India came up with The Banking Companies Act, 1949 which was later changed to
Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). During
those days public has lesser confidence in the banks. As an aftermath deposit

54
mobilisation was slow. Abreast of it the savings bank facility provided by the Postal
department was comparatively safer. Moreover, funds were largely given to traders.

PhaseII

Government took major steps in this Indian Banking Sector Reform after independence.
In 1955, it nationalised Imperial Bank of India with extensive banking facilities on a large
scale specially in rural and semi-urban areasSeven banks forming subsidiary of State
Bank of India was nationalised in 1960 on 19th July, 1969, major process of
nationalisation was carried out. It was the effort of the then Prime Minister of India, Mrs.
Indira Gandhi. 14 major commercial banks in the country was nationalised.

Second phase of nationalisation Indian Banking Sector Reform was carried out in 1980
with seven more banks. This step brought 80% of the banking segment in India under
Governmentownership.

The following are the steps taken by the Government of India to Regulate Banking
Institutions in the Country:

• 1949 : Enactment of Banking Regulation Act.

• 1955 : Nationalisation of State Bank of India.
• 1959 : Nationalisation of SBI subsidiaries.
• 1961 : Insurance cover extended to deposits.
• 1969 : Nationalisation of 14 major banks.
• 1971 : Creation of credit guarantee corporation.
• 1975 : Creation of regional rural banks.
• 1980 : Nationalisation of seven banks with deposits over 200 crore.

54
 List of Private Banks

Private Sector Banks

South Indian Bank Centurian Bank Cosmos Bank
IndusInd Bank City Union Bank Lakshmi Vilas Bank
HDFC Bank Federal Bank Bank of Rajasthan
Jammu & Kashmir Bank Catholic Syrian Bank Bank of Punjab
Nedungadi Bank Saraswat Bank ING-Vysya Bank
Development Credit Bank DhanLakshmi Bank Kalyan Bank
Ratnakar Bank Kotak Bank Karur Vysya Bank
Mandavi Bank United Western
Bank

PROFIT
Profit is the difference between the income of the business and all its costs/expenses. It
is normally measured over a period of time.

54
They are four main types of profit quoted by a business:

Gross profit

This is the difference between sales income and the direct costs of making those
products. Gross profit is used as a performance indicator to help the business make
decisions over its pricing policies and use of materials.

Net profit

Net profit represents gross profit less all expenses associated with the normal running
of the business. Net profit shows how well the business performs under its normal
trading circumstances. It is used to calculate the “primary efficiency” ratio.

Net profit after interest and taxation

This is the profit available for the shareholders. Net profit after interest and taxation is all
due to the owners of the business. They can choose to take out, in the form of
dividends, all, some or none of this.

Retained profit

Retained profit is the profit left over after the shareholders have been paid their
dividends. Retained profit is normally reinvested in the business.

PROFIT IS IMPORTANT TO A BUSINESS BECAUSE:

54
It is a reward to the owners of the business. They have taken risks with their money
and time. If there was no profit, then there would be little point in starting up or putting
more money into the business, they might as well put the money into a bank or building
society

Profits are an important source of investment funds. Profit can be used to buy more
stock, improve technology or expand the premises

A business than does not make a profit will fail, potentially affecting employees,
suppliers and the local community

Many businesses do not face a dilemma or problem over the amount of profit they
make, because they are just happy to make a profit in the first place.

However there are situations where businesses can exploit the customers because
there is not much competition from other businesses. A business will need to an ethical
view (what is morally right) on how much to charge and whether they believe their
profits to be excessive.

It needs to be remembered that profits are used to reinvest, which leads to better
products for their customers, better wages and working conditions for their workers or to
help the local community.

WHAT IS PROFITABILITY?

54
Profitability refers to the potential of a venture to be financially successful. This may be
assessed before entering into a business or it may be used to analyze a venture that is
currently operating. Although it may be found that one set of factors is not likely to be
successful or has not been successful, it may not be necessary to abandon the venture.
It may instead be feasible to change operational factors such as pricing or costs.

There are three basic situations that can describe a business’ financial situation. It can
be profitable, it can break even, or it can operate at a loss. In most cases, an
organization’s goal is to make a profit.

When there is constant or abundant cash flow, it can be difficult to determine

profitability. It is easy for a person to make the mistake of linking numerous incoming
and outgoing transactions with profit. Spending and receiving money, however, does
not mean a business is in a healthy financial state.

To determine profitability, it is necessary to access the price of the goods or services

being offered. There are several things that need to be considered when prices are
established. This includes variable costs such as fuel, labor, and inventory, and it also
includes fixed costs such as mortgage, repairs, and taxes.

Yield must also be considered. This refers to the amount of products or services
produced within a certain time frame or from a certain amount of materials. For
example, if a full tank of gas is only sufficient for two deliveries, the price is likely to be
higher than it would be if a full tank of gas could accommodate six deliveries. If the price
for two deliveries were priced the same as six deliveries, it is likely that profitability
would be jeopardized.

Tracking profitability may require two things. First, a business will likely need good and
accurate records of its expenses. Second, depending on the size and complexity of the
venture, a person with good accounting

54
 CH:3

INTRODUCTIN OF RESEARCH

54
• Research is done in to gain some knowledge so as to it may aid in understanding
the Information gathered on a specific topic. It is a scientific and systematic way
of understanding information on specific and particular subjects. It is a scientific
investigation to understand the cause and effect as well as the reasons through
investigation. It is academic activity. And it is to be used in technical sense.
• Today completion and market both have expanded. The company every now and
then cannot afford to undertake research activities as research involves huge
cost. The companies undertake research activities when it perceives that
something is going wrong or their lack of information to solve a particular
problem.
• Research has been done to bring cut the portfolio analysis of classic customer to
find out the success of programmed. The data was readily available to the bank
the main focus of research was to study to find out the facts about the classic
customer programmed.

Definition of Research Methodology

54
Research is a diligent and systematic inquiry or investigation in to a subject in order to
discover or revise facts, theories, applications, etc. methodology is the system of
methods followed by particular discipline. Thus, research methodology is the way how
we conduct our research.

Types of Research and The Research Design

The type of the research that will be used in this research is qualitative research. The
writers will get the data by analysis and interpretation of themes, words and also using
cases as the base, as for the research design, the descriptive research is being used in
this research. Descriptive research is a research which specific predications is made,
the percentage of units in a specified population exhibiting a certain behavior is
measured, the characteristics of relevant groups is described, the degree to which
marketing variables are associated is demined, and to determine the perceptions of
product characteristics.

Types of Data and Data Collection Methods

There are two types of data:

1. Primary Data

The primary data are data which are being collected by the researcher for the
specific purpose of answering the problem on hand. It is taken by the observation
during the research for four different times and interview with the owner who is
also the supervisor of the restaurant, captain, chef, and two cooks.

2. Secondary Data

The secondary data is being obtained by the literature study and the articles from
the internet.

54
 RESEARCH PROCESS

Before embarking on the details of research methodology & techniques it seems

appropriate to present a brief overview of the research process Research process
consist of series of actions or steps necessary to effectively carry out research & the
desired sequencing of these steps the chart shows a research process.

Start
Start
over

New Theory & Problem

hypotheses Identification

Build Body of
Observation
Theory /Hypotheses & Description

Replication &
Construction
Verification
of
Hypotheses

Testing of Hypotheses
(Experiment-
Observation)

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 THE RESEARCH PROCESS

We Understand The World By Asking Questions And Searching For Answers. Our
Construction Of Reality Depends On The Nature Of Our Inquiry.

Until The Sixteenth Century, Human Inquiry Was Primarily Based On Introspection. The
Way To Know Things Was To Turn Inward And Use Logic To Seek The Truth. This
Paradigm Had Endured For A Millennium And Was A Well-Established Conceptual
Framework For Understanding The World. The Seeker Of Knowledge Was An Integral
Part Of The Inquiry Process.

A Profound Change Occurred During The Sixteenth And Seventeenth Centuries.

Copernicus, Kepler, Galileo, Descartes, Bacon, Newton, And Locke Presented New
Ways Of Examining Nature. Our Method Of Understanding The World Came To Rely
On Measurement And Quantification. Mathematics Replaced Introspection As The Key
To Supreme Truths. The Scientific Revolution Was Born.

 Problem Recognition & Definition

All Research Begins With A Question. Intellectual Curiosity Is Often The Foundation For
Scholarly Inquiry. Some Questions Are Not Testable. The Classic Philosophical
Example Is To Ask, "How Many Angels Can Dance On The Head Of A Pin?" While The
Question Might Elicit Profound And Thoughtful Revelations, It Clearly Cannot Be Tested
With An Empirical Experiment. Prior To Descartes, This Is Precisely The Kind Of
Question That Would Engage The Minds Of Learned Men. Their Answers Came From
Within. The Modern Scientific Method Precludes Asking Questions That Cannot Be
Empirically Tested. If The Angels Cannot Be Observed Or Detected, The Question Is
Considered Inappropriate For Scholarly Research.

 Creating The Research Design

54
Defining A Research Problem Provides A Format For Further Investigation. A Well-
Defined Problem Points To A Method Of Investigation. There Is No One Best Method Of
Research For All Situations. Rather, There Are A Wide Variety Of Techniques For The
Researcher To Choose From. Often, The Selection Of A Technique Involves A Series
Of Trade-Offs. For Example, There Is Often A Trade-Off Between Cost And The Quality
Of Information Obtained. Time Constraints Sometimes Force A Trade-Off With The
Overall Research Design. Budget And Time Constraints Must Always Be Considered As
Part Of The Design Process (Willowick, 1993).

. There Are Three Basic Methods Of Research: 1) Survey, 2) Observation, And 3)

Experiment (McDaniel And Gates, 1991). Each Method Has Its Advantages And
Disadvantages.

 Sampling

Sampling Methods Are Classified as Either Probability or No probability. In Probability

Samples, Each Member Of The Population Has A Known Probability Of Being Selected.
Probability Methods Include Random Sampling, Systematic Sampling, And Stratified
Sampling. In No Probability Sampling, Members Are Selected From The Population In
Some Nonrandom Manner. These Include Convenience Sampling, Judgment Sampling,
Quota Sampling, And Snowball Sampling. The Other Common Form Of No Probability
Sampling Occurs By Accident When The Researcher Inadvertently Introduces No
Randomness Into The Sample Selection Process. The Advantage Of Probability
Sampling Is That Sampling Error Can Be Calculated. Sampling Error Is The Degree To
Which A Sample Might Differ From The Population. When Inferring To The Population,
Results Are Reported Plus Or Minus The Sampling Error. In No probability Sampling,
The Degree To Which The Sample Differs From The Population Remains Unknown.
Random Sampling Is The Purest Form Of Probability Sampling. Each Member Of The
Population Has An Equal Chance Of Being Selected. When There Are Very Large
Populations, It Is Often Difficult Or Impossible To Identify Every Member Of The
Population, So The Pool Of Available Subjects Becomes Biased. Random Sampling Is
Frequently Used To Select A Specified Number Of Records From A Computer File.

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  Data Collection

There Are Very Few Hard And Fast Rules To Define The Task Of Data Collection. Each
Research Project Uses A Data Collection Technique Appropriate To The Particular
Research Methodology. The Two Primary Goals For Both Quantitative And Qualitative
Studies Are To Maximize Response And Maximize Accuracy.

When Using An Outside Data Collection Service, Researchers Often Validate The Data
Collection Process By Contacting A Percentage Of The Respondents To Verify That
They Were Actually Interviewed. Data Editing And Cleaning Involves The Process Of
Checking For Inadvertent Errors In The Data. This Usually Entails Using A Computer To
Check For Out-Of-Bounds Data.

Qualitative Studies Nearly Always Involve In-Person Interviews, And Are Therefore Very
Labor Intensive And Costly. They Rely Heavily On A Researcher's Ability To Exclude
Personal Biases. The Interpretation Of Qualitative Data Is Often Highly Subjective, And
Different Researchers Can Reach Different Conclusions From The Same Data.
However, The Goal Of Qualitative Research Is To Develop A Hypothesis--Not To Test
One. Qualitative Studies Have Merit In That They Provide Broad, General Theories That
Can Be Examined In Future Research.

 Data Analysis

Modern Computer Software Has Made The Analysis Of Quantitative Data A Very Easy
Task. It Is No Longer Incumbent On The Researcher To Know The Formulas Needed
To Calculate The Desired Statistics. However, This Does Not Obviate The Need For
The Researcher To Understand The Theoretical And Conceptual Foundations Of The
Statistical Techniques. Each Statistical Technique Has Its Own Assumptions And
Limitations. Considering The Ease In Which Computers Can Calculate Complex
Statistical Problems, The Danger Is That The Researcher Might Be Unaware Of The
Assumptions And Limitations In The Use And Interpretation Of A Statistic.

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  Reporting The Results

The Most Important Consideration In Preparing Any Research Report Is The Nature Of
The Audience. The Purpose Is To Communicate Information, And Therefore, The
Report Should Be Prepared Specifically For The Readers Of The Report. Sometimes
The Format For The Report Will Be Defined For The Researcher (E.G., A Dissertation),
While Other Times, The Researcher Will Have Complete Latitude Regarding The
Structure Of The Report. At A Minimum, The Report Should Contain An Abstract,
Problem Statement, Methods Section, Results Section, Discussion Of The Results, And
A List Of References (Anderson, 1966).

 Validity And Reliability

Validity Refers To The Accuracy Or Truthfulness Of A Measurement. Are We Measuring

What We Think We Are? "Validity Itself Is A Simple Concept, But The Determination Of
The Validity Of A Measure Is Elusive"

Face Validity Is Based Solely On The Judgment Of The Researcher. Each Question Is
Scrutinized And Modified Until The Researcher Is Satisfied That It Is An Accurate
Measure Of The Desired Construct. The Determination Of Face Validity Is Based On
The Subjective Opinion Of The Researcher.

Reliability Is Synonymous With Repeatability. A Measurement That Yields Consistent

Results Over Time Is Said To Be Reliable. When A Measurement Is Prone To Random
Error, It Lacks Reliability. The Reliability Of An Instrument Places An Upper Limit On Its
Validity (Specter, 1981). A Measurement That Lacks Reliability Will Necessarily Be
Invalid. There Are Three Basic Methods To Test Reliability: Test-Retest, Equivalent
Form, And Internal Consistency

 Variability And Error

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Most Research Is An Attempt To Understand And Explain Variability. When A
Measurement Lacks Variability, No Statistical Tests Can Be (Or Need Be) Performed.
Variability Refers To The Dispersion Of Scores.

Types of Research Methodology

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 Action Research Is A Methodology That Combines Action And Research To
Examine Specific Questions, Issues Or Phenomena Through Observation And
Reflection, And Deliberate Intervention To Improve Practice.

 Applied Research Is Research Undertaken To Solve Practical Problems Rather

Than To Acquire Knowledge For Knowledge Sake.

 Basic Research Is Experimental And Theoretical Work Undertaken To Acquire

New Knowledge Without Looking For Long-Term Benefits Other Than The
Advancement Of Knowledge.

 Clinical Trials Are Research Studies Undertaken To Determine Better Ways To

Prevent, Screen For, Diagnose Or Treat Diseases.

 Epidemiological Research Is Concerned With The Description Of Health And

Welfare In Populations Through The Collection Of Data Related To Health And
The Frequency, Distribution And Determinants Of Disease In Populations, With
The Aim Of Improving Health.

 Evaluation Research Is Research Conducted To Measure The Effectiveness Or

Performance Of A Program, Concept Or Campaign In Achieving Its Objectives.

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 Literature Review Is A Critical Examination, Summarization, Interpretation Or
Evaluation Of Existing Literature In Order To Establish Current Knowledge On A
Subject.

 Qualitative Research Is Research Undertaken To Gain Insights Concerning

Attitudes, Beliefs, Motivations And Behaviors Of Individuals To Explore A Social
Or Human Problem And Include Methods Such As Focus Groups, In-Depth
Interviews, Observation Research And Case Studies.

 Quantitative Research Is Research Concerned With The Measurement Of

Attitudes, Behaviors And Perceptions And Includes Interviewing Methods Such
As Telephone, Intercept And Door-To-Door Interviews As Well As Self-
Completion Methods Such As Mail Outs And Online Surveys.

 Service Or Program Monitoring And Evaluation Involves Collecting And

Analyzing A Range Of Processes And Outcome Data In Order To Assess The
Performance Of A Service Or Program And To Determine If The Intended Or
Expected Results Have Been Achieved.

METHODS OF RESEARCH

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• Historical Method:
To Reconstruct The Past Objectively And Accurately, Often In Relation To The
Tenability Of A Hypothesis.

• Descriptive Method:
To Describe Systematically A Situation Or Area Of Interest Factually And Accurately.

• Developmental Method:
To Investigate Patterns And Sequences Of Growth And/or Change As Function Of
Time.

• Case and Field Method:

To Study Intensively The Background, Current Status, And Environmental Interactions
Of A Given Social Unit.

• Correlation Method:
To Investigate The Extent To Which Variations In One Factor Correlate With Variations
In One Or More Other Factors Based On Correlation Coefficient.

• True Experimental Method:

To Investigate Possible Cause-And-Effect Relationships By Exposing One Or More
Experimental Groups To One Or More Treatment Conditions And Comparing The
Results To One Or More Control Groups Not Receiving The Treatment, Random
Assignment Being Essential.

• Quasi-Experimental Method:
To Investigate The Conditions Of The True Experiment In A Setting Which Does Not
Allow The Control Or Manipulation Of All Relevant Variables?

RESEARCH DESIGN OF THE PROJECT

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 Objective

To analyze ratio Of HDFC, ICICI AND IDBI banks.

Operating Margin

Net profit margin

Adjusted return on net worth

Gross profit margin

Adjusted cash margin

Repoted return on net worth

Return on long term fund

This information about all profitability ratios and comparison of profitability of icici,hdfc
and idbi banks.

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  Determination of source of the data

In research literature, there are two types of data i.e. primary and secondary
data. The researcher can gather primary data or secondary data or both.

Primary data:

Primary data are those, which are collected by the researcher at the first time, and they
are original in character to study a particular problem.

Secondary data:

The secondary data are those, which are already collected by someone for some
purpose and are available for the present study. Secondary data was collected from the
magazines, websites and other such sources like Internet, Various magazines/bulletins,
News papers, related books.

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  Analyses and interpretation

Research analyses are very important for collecting information for any study. As in my
study I have to collect the data for comparisons of profitability of private leading bank.
All information is indicated below.

Comparisons of all profitability information about HDFC, ICICI AND IDBI and Shown
under through Chart. All Profitability Ratio Like Operating Ratio, Net Profit Ratio,
Adjusted Return On Net Worth, Return On Long Term Fund.

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CH: 4

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 ICICI INTRODUCTION
Introduction

As one of the largest financial institutions in India, ICICI's overall mission has been to
build the capacities of commercial entities and, thereby, enable them to become agents
of economic change. We believe that building the capacities of the poorest of the poor
to participate in the economy and society is a natural extension of this role. With this in
mind, ICICI has been contributing to the social sector for nearly 30 years, mainly by
financing and advising organizations working in the development sector.

ICICI has a permanent and full-time group, the Social Initiatives Group (SIG), to
concentrate on its development-related initiatives. Through the SIG, ICICI seeks to
define and effectively fulfill its responsibilities as a corporate citizen. The group believes
that education and health are basic prerequisites for all people, especially the
chronically deprived, to participate in the larger economy. Universal access to basic
financial services, and effective use of appropriate technologies will create greater
opportunities for people to participate in the economy in an equitable and productive
manner. With this in mind, the group has focused its attention on identifying and
supporting initiatives in:

• Pre-primary and primary education

• Health, especially reduction of infant mortality rates
• Micro-finance

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 • Application of information technology and other technologies to facilitate work in
the above faster, and reach a wider audience.

The group's involvement is not at the grassroots, though field visits, aimed at assessing
need and facilitating dialogue, form an integral part of their work.

ICICI PROFILE

Type Public : (NSE: ICICIBANK, BSE: 532174, NYSE: IBN)

Industry: Banking
Financial services

Founded : 1955

Headquarters: Mumbai, Maharashtra, India

Key people: K.V. Kamath

(Chairman)
Chanda Kochhar
(MD & CEO)
N. S. Kannan
(CFO)

Products : Investment Banking

Commercial Banking
Retail Banking
Private Banking
Asset Management
Mortgages
Credit Cards

Revenue : 59,599.77

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crore: (US$ 13.17 billion) (2009)

Operating income : 6,578.64 crore (US$ 1.45 billion) (2010)

Profit: 4,843.41 crore (US$ 1.07 billion) (2010)

Total assets : US$ 108.7 billion (2010)

Employees : 35,000+ (2009)

Website : ICICIBank.co

IDBI INTRODUCTION

The Industrial Development Bank of India Limited (IDBI) (BSE: 500116) is one of
India's leading public sector banks and 4th largest Bank in overall ratings. RBI
categorized IDBI as an "other public sector bank". It was established in 1964 by an Act
of Parliament to provide credit and other facilities for the development of the fledgling
Indian industry. It is currently 10th largest development bank in the world in terms of
reach with 1300 ATMs, 758 branches and 513 centers. Some of the institutions built by
IDBI are the National Stock Exchange of India (NSE), the National Securities Depository
Services Ltd (NSDL), the Stock Holding Corporation of India (SHCIL), the Credit
Analysis & Research Ltd, the Export-Import Bank of India(Exim Bank), the Small
Industries Development bank of India(SIDBI), the Entrepreneurship Development
Institute of India, and IDBI BANK, which today is owned by the Indian Government,
though for a brief period it was a private scheduled bank.

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 COMPANY PROFILE

Type: Public (BSE: 500116)

Industry: Banking
Financial services

Founded: July 1964

Headquarters: Mumbai, India

Key people: Shri R. M. Malla, CMD

Products: Finance and insurance

Employees: 8,989

Website : www.idbi.com

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 OPERATING MARGIN

30

25

20

HDFC
15
IDBI

10 ICICI

0
2010

In this ratio the HDFC bank the total operating ratio is 24.36 and the IDBI bank the total
operating ratio is 12.19 and ICICI bank operating ratio is 16.95.From the above we can
say that the operating ratio of IDBI BANK low. This shows that the operating expenses
are low. So the firm of IDBI is more stable.

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 NET PROFIT MARGIN

20

18

16

14

12
HDFC
10
IDBI
8
ICICI
6

0
2010

In this ratio the HDFC bank the total operating ratio is 17.77 and the IDBI bank the total
operating ratio is 5.97 and ICICI bank operating ratio is 12.17.from the above mentioned
chart we can say that net profit ratio of HDFC bank is good at 17.77 and here HDFC
bank is found to be more flexible which other banks should also take in this account.

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 ADJUSTED RETURN ON NET WORTH

16

14

12

10
HDFC
8
IDBI
6 ICICI

0
2010

In this ratio the HDFC bank the total operating ratio is 14.72 and the IDBI bank the total
operating ratio is 12.55 and ICICI bank operating ratio is 7.53.from the above mentioned
chart the HDFC bank is more flexible in attaining the net return on the amount invested
by the company share holders.

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 GROSS PROFIT MARGIN

25

20

15
HDFC
IDBI
10
ICICI

0
2010

In this ratio the HDFC bank the total operating ratio is 22.39 and the IDBI bank the total
operating ratio is 11.66 and ICICI bank operating ratio is 15.06.from the above the gross
profit margin of HDFC bank is good compared to other banks with margin of 22.39.

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 ADJUSTED CASH MARGIN

30

25

20

HDFC
15
IDBI
ICICI
10

0
2010

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 REPORTED RETURN ON NET WORTH

16

14

12

10
HDFC
8
IDBI
6
ICICI
4

0
2010

In this ratio the HDFC bank the total operating ratio is 13.70 and the IDBI bank the total
operating ratio is 12.53 and ICICI bank operating ratio is 7.79.from the above reported
on net worth of IDBI is more compared to other two banks which shows IDBI is more
stable.

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 RETURN ON LONG TERM FUND

200

180

160

140

120
HDFC
100
IDBI
80
ICICI
60

40

20

0
2010

In this ratio the HDFC bank the total operating ratio is 56.08 and the IDBI bank the total
operating ratio is 174.83 and ICICI bank operating ratio is 44.72. From the above return
on long term fund of IDBI banks is more by 174.83 which shows that it has invested in
more reliable funds.

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 FINDINGS

PARTICULAR HDFC ICICI IDBI

Operating margin 24.36 16.95 12.19

Net profit margin 17.77 12.17 5.95

Adjusted return on net worth 14.72 7.53 12.55

Gross profit margin 22.39 15.06 11.66

Adjusted cash margin 26.63 13.64 6.48

Reported return on net worth 13.70 7.79 12.53

Return on long term fund 56.08 44.72 174.83

We can conclude that IDBI and HDFC are good enough who have in more profitable
industries and are enough to control their expenses and cash flow

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 SUGGESTION

 ICICI bank has to increase its skill staff to increase ratio.

 While IDBI bank and HDFC bank should make more efforts to become stable.

 More skill staff is required.

 Product awareness among customers is less which should be decrease by the

companies through awareness.

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 CONCLUSION

Having known deeply about HDFC bank. One can definitely say that its future is very
bright in investment and savings. Large amount of customers are covered by the bank
in all over the country. Each branch of the bank is doing a successful business and
earning very good return.

Through HDFC banks covered large amount of customers in almost all financial field,
like loans, security, mutual fund. Even today also different types of investment schemes
are developing and provide different savings alternatives to the customers.

The banks have been able to achieve its goals in its life span and still it is booming day
by day.

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 BIBLOGRAPHY

WEBSITES

 www. hdfc.com

 www. hdfcbank.com

 www.icici.co

 www.idbi.com

 www.scribd.com

JOURNALS & OTHER REFERENCE

C.R.KOTHARI-Research Methodology

PRANAV SHAH-Branch Manager of HDFC Bank

AMIT BORAD-Assistant Manager

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