PROJECT REPORT

ON

FINANCIAL SERVICE PROVIDED BY HDFC BANK

SEMESTER - VI
AS A PARTIAL FULFILMENT FOR THE DEGREE BACHELOR OF COMMERCE
IN
BANKING AND INSURANCE (BBI)

SUMMITED BY:
(SAKSHI ARVIND BAGDE)
ROLL NO: 26
UNDER THE GUIDENCE OF:
(SHRADDHA BARI)

K. M. AGRAWAL COLLEGE.
ADDRESS: GANDHARI, PADGHA RD, KALYAN (W) 421 301,
DIS - THANE
 PROJECT REPORT
ON

FINANCIAL SERVICE PROVIDED BY HDFC BANK

SEMESTER - VI
AS A PARTIAL FULFILMENT FOR THE DEGREE BACHELOR OF COMMERCE
IN
BANKING AND INSURANCE (BBI)

SUMMITED BY:
(SAKSHI ARVIND BAGDE)
ROLL NO: 26
UNDER THE GUIDANCE OF:
(SHRADDHA BARI)

K. M. AGRAWAL COLLEGE.
ADDRESS: GANDHARI, PADGHA RD, KALYAN (W) 421 301,
DIS – THANE
 INDEX

CHAPTER SR NO. TITLE PAGE NO.

NO.
1 1 INTRODUCTION
1.1 History of HDFC Bank
1.2 Function of Bank Structure of
1.3 HDFC Bank
1.4 Growth of Bank Industry In India
2 2 RESEARCH METHODOLOGY
2.1 Data Collection
2.2 Testing of Data & Interpretation
2.3 Tabulation of Data
3 3 COMPANY PROFILE
3.1 Introduction To HDFC BankBoard
3.2 of Directors
3.3 Business Focus
3.4 Mission Statement of HDFC BankVision
3.5 Statement of HDFC Bank Business
3.6 Strategy
3.7 Network Distribution
3.8 Promoter Management
3.9 Technology
3.10 Business
3.11 Treasury
3.12 Services offered by the company
3.13 Achievement /Awards
3.14
4 4 SWOT ANALYSIS
5 5 FINANCIAL SERVICES PROVIDED BYHDFC
BANK
5.1 Business LoansCar
5.2 Loans Credit Cads
5.3 HDFC Bank Educational LoansHDFC
5.4 Fixed Deposit
5.5 Gold Loans
5.6 HDFC Bank Home Loans HDFC
5.7 Loan Against PropertyPersonal Loan
5.8 by HDFC BankHDFC Bank Saving
5.9 Account
5.10
6 6 RECOMMENDATION
7 7 REVIEW OF LIERATURE
8 8 SUGGESTIONS

9 9 CONCLUSION
10 10 BIBLIOGRAHY
 CHAPTER NO. 1

INTRODUCTION

HDFC Bank‟s mission is to be a World-Class Indian Bank. The objective is to

build sound customer franchises across distinct businesses so as to the preferred provider of
banking services for target retail and wholesale customer segment, 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 standard, 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.

HDFC Bank’s Ltd. is an Indian banking and financial services company

headquartered in Mumbai, Maharashtra. It has a base of 111,208 permanent employees as of
30 September 2019. HDFC Bank is Indian‟s largest private sector lender by assets. It is the
largest bank in India by market capitalization as of February 2016, It was ranked 60th in 2019
Brand Top 100 Most Valuable Global Brands.

HDFC Bank was incorporated in 1994, with its registered office in Mumbai
Maharashtra, India. Its first corporate office and a full service branch at Sandoz House, Worli
were inaugurated by the then Union Finance Minister, Man Mohan Singh.

As of June 30, 2019, the Bank‟s distribution network was at 5,130 branches across
2,764 cities. The bank also installed 4.30 lakhs POS terminal and issued 235.7 Lakhs debit
cards and 85.4 Lakhs credit cards in FY 2017.

HDFC Bank merged with Times Bank in February 2000. This was the first merger
of two private banks in the New Generation private sector bank category. In 2008, Centurion
Bank was acquired by HDFC Bank. HDFC Bank Board approved the acquisition of CBoP for
95.1 billion INR in one of the largest mergers in the financial sector in India.

HDFC Bank 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 from Housing
Development Finance Corporation Limited (HDFC), in 1994 during the period of
liberalisation of the banking sector in India. HDFC India was incorporated in August 1994 in
the name of ‘HDFC Bank Limited’. HDFC India commenced operations as a Scheduled
Commercial Bank in January 1995.

HDFC India deals in varieties of products like home loan, standard life insurance,
mutual fund, securities, credit card, etc. HDFC has branch offices in all major cities India like
Calcutta, Chennai, Delhi, Bangalore, Hyderabad, Ahmedabad apart from HDFC Mumbai.

The banking industry has experienced mixed results in the post-crisis period from
2008 to 2010. Industry growth has slowed considerably; the growth rate assets of the top
1000 bank globally 1 in the post-crisis period remained 3.7%, compared to the double digit
rise in Rate shows during the pre-crisis years of 2005 to 2007. On the other hand, when
looking at Risk management and profitability, there has been great recovery. Profits have
returned to pre-

Crisis levels solvency of the industry has witnessed great result with growth of 3.8%
Registered in capital adequacy ratio during 2005 to 2010.

The industry has also entered era of advance regulation. More capital adequacy and risk
Management standard are now being utilized with banks, along with a related rise in strain
On their traditional business model and operating margins. Looking forward, certain key
Priorities have appeared for the banking industry, classification among them are; restoration
Of customer confidence; showing problem such as low efficiency of existing channel; ageing

Technology; high operating costs and the existence of complex processes. Technology,
Including the development of consumer related solution, is rising being seen as a key to
Meeting these standards.

The global banking industry has experienced healthy growth in recent years, registering a
Compound annual growth rate (CAGR) of 4.7% between 2012 and 2016 to reach a value of
$134.1 trillion, according to data from research firm Market Line.
1.1 HISTORY OF HDFC BANK

The housing development Finance Corporation Limited (HDFC) was amongst the
first to receive as in principal 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.

The bank was incorporated in August 1994 in the name of HDFC Bank Limited,
with its registered office in Mumbai, India. The bank commenced operation as a scheduled
Commercial Bank in January 1995.

The mission of HDFC is to become “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. The objective is to
build sound customer franchises across distinct business so as to be preferred provider of
banking services for target retail and wholesale customer segment and to achieve a healthy
growth in profitability, consistence 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 five core values: Operational Excellence, Customer Focus,
product Leadership, People and sustainability.

HDFC Bank’s Business Objectives Emphasize the Following:

 Increase their market share in Indian‟s expending banking and financial services
industry by following a disciplined growth strategy and delivering high quality
customer‟s service.
 Leverage their technology platform and open, scale able systems to deliver more
products to more customers and to control costs.
 Maintain their current high standards for asset quality through disciplined credit risk
management.
 Develop innovative products and services that attract our targeted customers and
address inefficiencies in the Indian financial sector.
 Continue to develop product and services that reduce our cost of funds.
 Focus on high earing growth with low volatility.
 HDFC is Indian‟s premier housing finance company and enjoy an impeccable track
record in India as well as in international markets. Since its inception in 1977.

Corporation has maintained a consistent and healthy growth in its operations to remain the
market leader in mortgages Its outstanding loan portfolio cover a million dwelling units.
HDFC has developed significant expertise in retail mortgage loan to different market
segments and also has a large corporate client base for its housing.

The Bank has made substantial efforts and investments in acquiring the best
technology available internationally, to build the infrastructure for a world class bank. In
terms of core banking software, the Corporate Banking business is supported by Flex cube,
while the Retail Banking business by Fin ware, both from I-flex Solutions Ltd. The system is
Open, saleable and web-enabled.

HDFC Bank‟s mission is to be a World-Class Indian Bank. The objectives is to

build sound customers franchises across distinct businesses so as to be the preferred provider
of banking services for target retail and wholesale customer segments, and to achieve 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. MISSION
STATEMENT OF HDFC BANK World Class Indian Bank. Benchmarking against
international standards. To build sound customer franchises across distinct businesses Best
practices in term of product offerings, technology, services levels, risk management and audit
& compliance.

The objective of the HDFC Bank is to provide its target market customers a full range
of financial product 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.

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable

network of over 1229 branches spread over 444 cities across India. All branches are linked on
an online real-time basis. Customers in over 120 locations are also serviced through
Telephone Banking. The Bank‟s expansion plans take into account the need to have a
presence in all major industrial and commercial centres where its corporate customers are
located as well as the need to build a strong retail customer base for both deposits and loan
products. Being a clearing/settlement bank to various leading stock exchanges, the Bank has
branches in the centres where the NSE/BSE has a strong and active member base. The Bank
also has a network of about over 2526 networked ATMs across these cities. Moreover, HDFC
Bank‟s ATM network can be accessed by all domestic and international Visa/MasterCard,
Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.

HDFC is Indian‟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 a
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 promoted a bank in the
Indian environment.

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
bank in the private sector, as part of the RBI‟s liberalisation 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 Bank companies of a dynamic and enthusiastic
team determined to accomplish the vision of becoming a World-class Indian bank, HDFC
Bank” business philosophy is based on our four core values – Customer Focus, Operational
Excellence, Product Leadership and People. They believe that the ultimate identity and
success of their bank will reside in the exceptional quality of people and their extraordinary
efforts. They are committed to hiring, developing, motivating and retaining the best people in
the industry.

So dose HDFC bank meet these heightened expectations? What are the customers”
perceptions of services quality of the bank? Which dimension of services quality of HDFC
bank I performing well? To find out answers to these questions I undertook a survey of 2
branches of HDFC bank. A lot of surveys have been done in the past to understand the aspect
of customer satisfaction and to find out the customer friendly banks. My research s conducted
to find out “SERVICE QUALITY OF HDFC BANK”.

Banking in India has a long and elaborate history of more than 200 years. The
beginning of this industry can be traced back to 1786, when the country‟s first bank, Bank of
Bengal, was established. But the industry changed rapidly and drastically, after the
nationalization of banks in 1969.

Indian Banking sector is dominated by public sector banks (PSBs) which accounted
for 72.6% of total advances for all SCBs as on 31st March 2008. PSBs have rapidly expanded
their foot prints after nationalisation of banks in India in 1969 and further in 1980. Although
there is a restrictive entry/expansion for private and foreign bank in India, these banks have
increased their presence and business over last 5 years.

Peculiar characteristic of Indian unlike their western counterparts such as high share
of household saving in deposits (57.4% of total deposits), adequate capitalization, stricter
regulations and lower leverage makes them less prone to financial crisis, as was seen in the
western world in mind FY09.
1.2 FUNCTIONS OF BANK

Primary Functions

 Acceptance of Deposits
 Making Loans & Advances
 Loans
 Overdraft
 Cash Credit
 Discounting of Bills of Exchange

Secondary Functions

 Agency Functions
 Collection of Cheques & Bills etc.
 Collection of Interest and Dividends
 Making Payment on Behalf of Customers
 Purchase & Sale of Securities
 Facility of Transfer of Funds
 To Act as Trustee & Executor.

Utility Functions

 Safe Custody of Customer‟s Valuable Articles & Securities

 Underwriting Facility
 Issuing of Travellers Cheque Letter of Credit
 Facility of Foreign Exchanges
 Providing Trade Information
 Provide Information Regarding Credit Worthiness of Their Customer.
1.3 STRUCTURE OF HDFC BANK

The Indian banking system can be classified into nationalized banks, private banks
and specialized banking institutions. The industry id highly fragmented with 30 banking units
contributing to almost 50% of deposits and 60% of advances. The Reserve Bank of India is
the foremost monitoring g body in the Indian Financial sector. It is a Centralized body that
monitors discrepancies and shortcoming in the system.

Banking segment in India functions under the umbrella of Reserve Bank of India (RBI)-

The regulatory, central bank.

This Segment Broadly Consists of:

1. Commercial Banks
2. Co-operative Bank

The Commercial Banking Structure in Indian Consists of:

1. Schedule Commercial Banking

2. Unscheduled Banks

Schedule Commercial Bank constitute of those banks, which have included second Schedule
of Reserve Bank of India (RBI) act 1934. RBI in turn includes only those banks in this
schedule that satisfy the criteria laid down vide section 42 (60 of the act) the sub sector can
broadly classified into:

1. Public Sector
2. Private Sector
3. Foreign Sector

Public sector banks have either government of India Reserve Bank of India (RBI) as the
majority shareholder.

This Segment Comprises of:

1. State Bank of India (RBI) and its subsidiaries

2. Other Nationalized Banks
Industry estimates indicate that our of 374 commercial banks operating in the Country, 223
banks are in the public sector and 51 are in the private sector. These private sector banks
include 24 foreign banks that have begun their operations here. The specialized banking
institutions that include cooperatives, rural banks, etc. from a part of the nationalized banks
category.
1.4 GROWTH OF BANKING INDUSTRYIN INDIA

Investments/developments:

Key investments and developments in India's banking industry include:

The bank recapitalization plan by Government of India is expected to push credit growth in
the country to 15 per cent and as a result help the GDP grow by 7 percept in FY19.

Public sector banks are lining up to raise funds via qualified institutional placements (QIP),
backed by better investor sentiment after the Government of India's bank recapitalization plan
and an upgrade in India's sovereign rating by Moody's Investor Service.

In May 2018, total equity funding's of microfinance sector grew at the rate of 39.88 to
Rs96.31 billion (Rs4.49 billion) in 2017-18 from Rs68.85 billion (USS 1.03 billion).

Government Initiatives:

A new portal named 'Udyami Mitra' has been launched by the Small Industries Development
Bank of India (SIDBI) with the aim of improving credit availability to Micro, Small and
Medium Enterprises' (MSMES) in the country.

Mr Arun Jaitley, Minister of Finance, Government of India, introduced The Banking

Regulation (Amendment) Bill, 2017', which will replace the Banking Regulation
(Amendment) Ordinance, 2017, to allow the Reserve Bank of India (RBI) to guide banks for
resolving the problems of stressed assets.

As on January 4, 2018, the Lok Sabha has approved recapitalization bonds worth Rs80,000
crore (USS 12.62 billion) for public sector banks, which will be accompanied by a series of
reforms.

The government and the regulator have undertaken several measures to strengthen the Indian
banking sector.

A two-year plan to strengthen the public sector banks through reforms and capital infusion of
USS 32.5 billion, has been unveiled by the Government of India that will enable these banks
to play a much larger role in the financial system and give a boost to the MSME sector. In
this regard, the Lok Sabha has approved recapitalization bonds worth USS 12.62 billion for
public sector banks, which will be accompanied by a series of reforms, according to Mr. Arun
Jaitley. Minister of Finance, and Government of India.

The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2017 Bill has been passed
by Rajya Sabha and is expected to strengthen the banking sector.

Further initiatives:

The advancements in technology have brought the mobile and interment banking services to
the fore. The banking sector is laying greater emphasis on providing improved services to
their clients and also upgrading their technology infrastructure, in order to enhance the
customer‟s overall experience as well as give banks a competitive edge.

Many banks, including HDFC, ICICI and AXIS are exploring the option to launch contact-
less credit and debit cards in the market shortly. The cards, which use near field
communication (NFC) mechanism, will allow customers to transact without having to insert
or swipe.

Exchange Rate Used: INR 1 = USS 0.016 as on FY2

1.1 OBJECTIVES OF HDFC BANK

1. To know which service quality dimension of bank is performing well.

2. To examine the essential dimension of service quality like reliability, assurance,

tangibility, empathy and responsiveness of HDFC bank and its effect on customer
satisfaction.

3. To evaluate and analyse various facts of the performance of company.

4. To determine the liquidity, profitability and efficiency of the project.

5. To study the financial system position of the HDFC bank.

6. To study the organizational structure of the HDFC bank.

1.2 IMPORTANCE AND SIGNIFICANCE

1. To develop close relationship with individuals households.

2. To maintain its position as premiere housing finance institution in the country.

3. To country. provide consistently high returns to the shareholders.

4. To transforms ideas into variable and creative situation.

5. To know customer view points and expectation about the product and services of bank.

1.3 SCOPE OF RESEARCH STUDY

The scope of this research is to identify the service quality of HDFC bank. This research is
based on primary data and secondary data. This study only focuses on the dimensions of
service quality i.e. RATER. It aims to understand the skill of the company in the area of
service quality that are performing well and shows those areas which require improvement.
The study was done taking two branches of HDFC bank into consideration. The survey was
restricted to the bank customers in Delhi only.

1.4 HYPOTHESIS

There is no significant difference among return on assert ratio of HDFC & ICICI. Ha: There
is significant difference among return on assert ratio of HDFC & ICICI.
 CHAPTER NO.2

REASEARH METHOLOGY

Research methodology is a process used to collect information and data for the purpose of
making business decisions. The methodology may include publication research, interviews,
surveys and other research techniques, and could include both present and historical
information.

RESEARCH DESIGN

A research design is a systematic approach that a researcher uses to conduct a scientific

study. It is the overall synchronization of identified components and data resulting in a
plausible outcome. To conclusively come up with an authentic and accurate result, the
research design should follow a strategic methodology, in line with the type of research
chosen. In this report I have used descriptive research technique. Descriptive research is used
to describe characteristics of a population or phenomenon being studied. This research
includes survey and fact-finding inquiries of different kind.

SOURCE OF DATA

Primary data is the data which is collected through personal contact. Through questionnaire
The questionnaire is written set of questions through personal contact- in personal interaction
ask question in face-to-face contact to other person Secondary data is the data which are
available in the form of fact and figures. The sources of secondary data are: Websites

Magazines

Articles

2.1 Data collection

1. Primary data sources

 Through interaction with banking care consultant.

 Through questionnaire filled from the banking care consultant.

2. Secondary data sources

  Through internet, various official sites of the companies.
 Through pamphlets and brochures of the companies.
 Through books which cover the banking factors.

1. Primary data

The primary data are the first hand information gathered for research to solve the need by
surveying the sampling units and collection of feedback from them involves the primary data
with structured queries will be prepared for the customers. There will be survey within the
customers giving the questionnaire. The questionnaire were structured non disguised
questionnaire which the questionnaire contained, were arranged in a specific order besides
the questions asked were logical for the study, no questions can be termed as irrelevant.

Sources of primary data:

 Personal interview
 Questionnaire

Personal interview

This method was the most appropriate way of survey, because by personal interview I came
to know about how the respondents feel about the banking companies. The personal interview
is conducting mainly for collecting information for fulfil of the questionnaire.

Questionnaire

This method proved to be even better because it was not possible to interview every one and
it was less time consuming to fill up the questionnaire rather than answering the interviewer's
questions. The questionnaire is to prepare to know the awareness level. The questionnaire is
fully focused for collecting the brand awareness information and findings the market
potential of Banking Company.

In this method questionnaire were distributed to the despondence and they were asked to
answer the questions in the questionnaire. The questionnaire were structured non disguised
questionnaire because the questions which the questionnaire contained, were arranged in a
specific order every besides every questions asked were logical for the study, no questions
can be termed as irrelevant
2. Secondary data

The secondary data is collected from the company websites and other websites, through listing by
personal observation. The secondary data are collected by some other people for their work and it is
already exit. The researcher started investigation by first examining the secondary data to see whether
the problem can be partly or fully solved by without collecting primary data. Since the secondary data
were not sufficient to solve the entire problem, so primary data were not sufficient were collected to
fill the gap.

Sources of secondary data:

 Through internet, various officials sites of the companies and other search engines.
 Through pamphlets and brochures of the companies.
 Journals and magazine.

Data collection instruments

Questionnaires were designed as a main instrument to conduct survey. A questionnaire constraint of9
set of questions presented to respondents for their answers. The questionnaire was non-disguised
because the questionnaire was constructed so that the objective is clear to the respondent. The
respondents were aware of the objectives. They knew why they were asked to fill the questionnaire.
The questionnaire is used for the purpose is used for the purpose of knowing the brand awareness
among Banking Company and changing investment pattern of people of Mumbai city.

Field work

Field work is done in this project individually with no biasness. The field work comprises of filling of
questionnaire by different sector individuals. The framed questionnaire was presented for approval for
to college internal guide and company external guide. The study involved a fieldwork where the
consumer contacted individually and were persuaded to discharge the information through the
questionnaire.
2.2 TESTING OF DATA & INTERPRETATION

1) Since how many years you are dealing with HDFC BANK?

Year Response

Less than 1 year 7

1 to 2 year 9
3 to 5 year 13
More than 5 year 6
total 35

Response

17%  20%
Less than 1 year 
1 to 2 year 
3 to 5 year 
26% More than 5 year 
37% 

Interpretation:

 26% Respondents have their account in HDFC bank for more than 5 years.
 17% Respondent are new account holders in bank.
 2) What kind of facility are you using at HDFC bank?

Service Response
Saving 11
Current 15
Salary ac 6
Other Demat ac 3

Response

9%

31% Saving ac 
17% 
Current ac 
Salary ac 
Other Demate ac 

43%

Interpretation:

 From above chart it is clear that 31% respondents are saving account holder.
 Major respondents are current account holder.
 9% respondents are other account holders which includes D- mat account and others.
 17% are salary account holders.
 3) Are you aware of other services provided by HDFC bank?

Option Response
Yes 21
No 14
Total 35

Response 
 
 
No 
40% 
 
Yes 
60% 

Interpretation:

 This chart shows that 60% Respondents are aware of other different facilities
provided by HDFC bank while other are unknown.
 4) What kind of additional service would like to have?

Services Response
Mobile banking 7
ATM 8
Net banking 14
Bill payment 6
Total 35

Response

Bill
Mobile 
payment  banking
17%  20% 

Net banking ATM

40% 23%

Interpretation:

 Chart shows that most of respondent are interested in banking with 40% strength.
 17% interested in ATM services.
 20% like to us mobile baking.
 23% have you like mobile payment.
 5) Are you aware of any other extra services?

Services Response
Loan 16
Insurance 8
FD 4
Mutual funds 7
Total 35

Response

Mutual Fund
20% 
  Loan
FD  46%
11% 

Insurans
23%

Interpretation:

 46% respondent selected loans which show highest level of awareness

 Few respondents are aware about fixed deposit with 11% strength.

 23% respondent selected insurance while 20% has selected mutual fund.
 6) What is your perception regarding services of HDFC bank?

Ratings Response
Very satisfactory 10
Satisfactory 18
Good 5
Poor 2
Total 35

Reaponse

Poor
6%
Good Very
15% sattisfactory 
26%

Satisfactory
53%

Interpretation:

 53% respondent are satisfy with HDFC bank while 6% say that services are poor
 15%,26% respondents says that services are good and satisfactory

.
7) Any problem you are facing regarding HDFC bank?

Issue Response
Employee 5
Behaviour
Facility 12
Time issue 13
Others 5
Total 35

Response

Others Employee
14% Behaviour 
15%

Time Issue Facility

37% 34%

Interpretation:

 37% respondents has issue regarding time spends on waiting

 34% has says facility is poor
 15% and 14% respondents are facing problem with employees and other issues
 8) How likely you will recommended HDFC bank Services?

Rating Sales
Very likely 11
Likely 13
Somewhat 8
Unlikely 3
Total 35

Sales

Unlikely
9%
Very likely
Somewhat 31%
23%

Likely
37%

Interpretation:

 37% respondents are willing to suggest their friend to join HDFC bank.
 8% are unwilling to recommend.
Auditor's Report
Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of HDFC Bank Limited
("the Bank"), which comprise the Balance sheet as at March 31, 2019, the Profit and Loss
Account, the Cash Flow Statement for the year then ended, and notes to the financial
statements, including a summary of significant accounting policies and other explanatory
information.

In our opinion and to the best of our information and according to the explanations given to
us, the aforesaid standalone financial statements give the information required by the
Banking Regulation Act, 1949 as well as the Companies Act, 2013 ("the Act") in the manner
so required for banking companies and give a true and fair view in conformity with the
accounting principles generally accepted in India, of the state of affairs of the Bank as at
March 31, 2019, its profit and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with the
Standards on Auditing (SAs), as specified under section 143(10) of the Act. Our
responsibilities under those Standards are further described in the 'Auditor's Responsibilities
for the Audit of the Standalone Financial Statements' section of our report. We are
independent of the Bank in accordance with the 'Code of Ethics' issued by the Institute of
Chartered Accountants of India together with the ethical requirements that are relevant to our
audit of the standalone financial statements under the provisions of the Act and the Rules
thereunder, and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the Code of Ethics. We believe that the audit evidence we have obtaincd is
sufficient and appropriate to provide a basis for our audit opinion on the standalone financial
statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the standalone financial statements for the financial year ended
March 31, 2019. These matters were addressed in the context of our audit of the standalone
financial statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters. For each matter below, our description of how our audit
addressed the matter is provided in that context.

We have determined the matters described below to be the key audit matters to be
communicated in our report. We have fulfilled the responsibilities described in the "Auditor's
Responsibilities for the Audit of the Standalone Financial Statements" section of our report,
including in relation to these matters. Accordingly, our audit included the performance of
procedures designed to respond to our assessment of the risks of material misstatement of the
standalone financial statements. The results of our audit procedures, including the procedures
performed to address the matters below, provide the basis for our audit opinion on the
accompanying standalone financial statements.

Information Other than the Standalone Financial Statements and Auditor's Report
Thereon

The Bank's Board of Directors is responsible for the other information. The other
information received by us comprises the information included in the Basel IlI Pillar 3
disclosures and graphical representation of financial highlights (but does not include the
financial statements and our auditor's reports thereon), which we obtained prior to the date of
this auditor's report, and Annual Report, which is expected to be made available to us after
that date.

Our opinion on the standalone financial statements does not cover the other information and
we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements, our responsibility is to
read the other information identified above and, in doing so, consider whether such other
information is materially inconsistent with the standalone financial statements or our
knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on
the work we have performed on the other information that we have obtained prior to the date
of this auditor's report, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.

When we read the Annual Report, if we conclude that there is a material misstatement
therein, we are required to communicate the matter to those Charged with Governance.
Responsibilities of Management and those Charged with Governance for the
Standalone Financial Statements

The Bank's Board of Directors is responsible for the matters stated in section 134(5) of the
Act with respect to the preparation of these standalone financial statements that give a true
and fair view of the financial position, financial performance, cash flows of the Bank in
accordance with the provisions of Section 29 of the Banking Regulation Act, 1949,
accounting principles generally accepted in India, including the Accounting Standards
specified under section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules,
2014 in so far as they apply to the Bank and guidelines and directions issued by Reserve
Bank of India from time to time.

This responsibility also includes maintenance of adequate accounting records in accordance

with the provisions of the Act for safeguarding of the assets of the Bank and for preventing
and detecting frauds and other irregularities;, selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable and prudent; and the
design, implementation and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the standalone financial statements that give a
true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, management is responsible for assessing the
Bank's ability to continue as a going concem, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting unless management either
intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do
so.

Those Charged with Governance are also responsible for overseeing the Bank''s financial
reporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone financial
Statements as a whole are free from material misstatement, whether due to fraud or error, and
to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with SAs will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error and 
are considered material if, individually or in the aggregate, they could reasonably be expected
to influence the economic decisions of users taken on the basis of these standalone financial
statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain
professional scepticism throughout the audit. We also:

- Identify and assess the risks of material misstatement of the standalone financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks,
and obtain audit evidence that is sufficient and appropriate to provide basis for The our
opinion. risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.

- Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances. Under section 143(3)0) of the Act, we
are also responsible for expressing our opinion on whether the Bank has adequate internal
financial controls system in place and the operating effectiveness of such controls. Evaluate
the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.

- Conclude on the appropriateness of management‟s use of the going concern basis of

accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Bank's ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditor's report to the related disclosures in the standalone financial
statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor's report. However, future
events or conditions may cause the Bank to cease to continue as a going concern.

- Evaluate the overall presentation, structure and content of the standalone financial
statements, including the disclosures, and whether the standalone financial statements
represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those Charged with Governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those Charged with Governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them:
relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.

From the matters communicated with those Charged with Governance, we determine those
matters that were of most significance in the audit of the standalone financial statements for
the financial year ended March 31, 2019 and are therefore the key audit matters. We describe
these matters in our auditor's report unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
Director's Report

The Directors take great pleasure in presenting the 25th Annual Report on the business and
operations of your Bank, together with the audited accounts for the year ended March 31,
2019. A journey of a thousand miles begins with a single step. Ours began a quarter of a
century back with the launch of the first branch in Mumbai on February 18, 1995. On the
same day in 2019, your Bank entered its silver jubilee year by opening its 5,000th branch
again at Mumbai. Along the way it has metamorphosed from a wholesale bank into one with
an equally strong retail presence and is well underway in its journey of offering an Omni
channel customer experience. In the semi urban and rural areas, where your Bank has over
half its banking outlets, it is acting as a change agent not only through its banking services
but social initiate ves as well under the umbrella brand Parivartan. As it enters its silver
jubilee year, your Bank has impacted the lives of about 10 crore Indians directly or indirectly
i.e. over 4.9 crore customers, the 5 crore plus people through its social initiatives and families
of its over 1.9 lakh employees (including that of its two subsidiaries).

In the year ended March 31, 2019 your Bank continued on this path. This came in an
economic environment where the Indian economy stood out as an outlier despite facing
various challenges both externally and intensely. Externally, it was buffeted by volatile crude
prices, rising interest rates in the developed world particularly in the US, heightened trade
tensions and geopolitical uncertainties in some parts of the world. Internally, the economy
was affected by serious concerns regarding the financial health of the NBFC sector, the
continuing high NPA levels in the banking space, slowing consumption demand and some
concerns on the fiscal side. Not to mention the uncertainty caused by the imminent general
elections. The Indian economy however continued to be the fastest growing in the world
thanks to the reforms of the past few years.

In the year under review, your Bank delivered a strong financial performance on the back of
an improvement in a majority of its key parameters.
Financial Parameters

Your Bank recorded an improvement in a majority of its key financial parameters. At Rs.
48,243.2 crore, Net Interest Income rose by 20.3 per cent. Core Net Interest Margin remained
stable at 4.3 per cent. Gross Non-Performing Assets (NPAs) at 1.36 per cent is among the
lowest in the industry. This was largely due to the Bank's prudent credit evaluation of the
targeted customer profile and having a diversified loan book spread across customer
segments, products, and sectors plus managing risk-return decisions with discipline. Your
Bank's Net Profit at Rs. 21,078.1 crore went up by 20.5 per cent.

In addition, the year stood out for one of the largest fund raising in your Bank's history. It
also continued to transform lives through Parivartan and securing recognition.

1) Fund Raising

Your Bank raised Rs. 23,715.9 crore in the year under review. This comprises a preferential
allotment to Housing Development Finance Corporation Lad of Rs. 8,500 crore, a Qualified
Institutional Placement of Rs. 2,775.0 crore and an ADR offering of S 1,820 million (Rs.
12,440.9 crore). Consequent to the above issuances, share capital increased by Rs. 20.89
crore and share premium increased by Rs. 23,568.7 crore. This is net of share issue expenses
of Rs. 126.3 crore. The issuances were made pursuant to the shareholder and regulatory
approvals. This has resulted in a strengthening of its capital structure, increasing solvency
and shoring up of its Capital Adequacy Ratio.

2) Parivartan

The Bank in the year under review has continued its journey of social commitment through
Parivartan which means change. Your Bank firmly believes that businesses cannot prosper if
the communities in which they operate don't. This is what has been inspiring its social
initiatives. This change has been brought about principally by about 10 per cent of the Bank's
workforce which works on the Sustainable Livelihood Initiative (SLI) which helps people
improve their lives by upgrading their skillsets and, thus, enabling them to break out of the
cycle of poverty. And through its Teaching-The-Teacher' (3T) initiative which has potentially
impacted 1.6 crore students as well as the Holistic Rural Development Programme which has
already touched another possible 14.4 lakh people spread across more than 1,100 villages.
We are also happy to report that in the year under review, your Bank has met the mandatory
CSR expenditure through a spend of Rs. 443.8 crore.

3) Awards and Recognition

The Bank continued to win awards and laurels. Notably, it was named India's most valuable
brand for the fourth year in a row in the BrandZ survey of Top 50 Most Valuable Indian
Brands. HDFC Bank was also ranked No 1 in India by customers in the first edition of the
World's Best Banks' survey by Forbes magazine. The publication partnered with market
research firm Statista to measure the best banks in 23 countries and customers were asked to
rate banks on overall recommendation and satisfaction, as well as on the 5 key attributes
namely: Trust; Terms and Conditions; Customer Service: Digital Device; Financial Advice.

Summary

To sum up, your Bank is geared up for the next phase of growth given the looming market
opportunities and its strong positioning in each of its major franchises. And also make a
greater contribution to bridge the divide between India and Bharat be it through its business
or social initiatives. This, of course, would not have been possible without the contribution of
our over 98,000 employees.

Mission and Strategic Focus

Your Bank's mission is to be a 'World-Class Indian Bank.' Its business philosophy is based
on five core values: Customer Focus, Operational Excellence, Product Leadership, People
and Sustainability. The last value Sustainability should be viewed in consonance with
Environmental, Social and Governance criteria. As a part of this, HDFC Bank through its
umbrella brand Parivartan seeks to bring about change in the lives of communities mainly in
Rural India.

The business objective has been to continue building sound customer franchises across
distinct businesses so as to be a preferred banking services provider to achieve healthy
growth in profitability consistent with the Bank's risk appetite.

In line with the above, your Bank's business strategy was to take digitisation to the next level
to achieve the following:

- Deliver superior experience and greater convenience to customers

- Increase market share in India's expanding banking and financial services industry.

‐Expand geographical reach

- Cross-sell the broad financial product portfolio

- Sustain strong asset quality through disciplined credit risk management

-Maintain low cost of funds

Your Bank is committed to do this while ensuring the highest levels of ethical standards,
professional integrity, corporate govern once and regulatory compliance. This is articulated
through a well-documented Code of Conduct that every employee has to affirm annually that
he/ she will abide by.

As on March 31, 2019, the issued, subscribed and paid up capital of your Bank stood at Rs.
5,446,613,220 comprising 272,33,06,610 equity shares of Rs. 2 each. During the year under
review, the Bank issued 3,90,96,817 equity shares to Housing Development Finance
Corporation Limited on a preferential basis, 1,28,47,222 equity shares on a qualified
institutions placement and 5,25,00,000 equity shares underlying 1,75,00,000 American
Depository Receipts (ADRs). Further, 2,37,72,304 equity shares of face value of Rs. 2 each
were issued pursuant to exercise of Employee Stock Option (ESOP) by the Bank. The
information pertaining to ESOPs is given in ANNEXURE I to this report.

The Board of Directors at its meeting held on May 22, 2019 considered and approved the
sub-division of one equity share of the Bank having face value of Rs. 2 each into two equity
shares of face value of Re. 1/- each and consequential alteration in the relevant clauses
relating to capital of the Memorandum of Association of the Bank. The sub-division of equity
shares as above is subject to the approval of the members at the ensuing Annual General
Meeting of the Bank.

Further, the Bank had issued 1,14,30,383 underlying equity shares representing Global
Depository Receipts (GDRs) of the Bank, which are listed on the Luxembourg Stock
Exchange. The Depository for GDRs is represented in India by J.P Morgan Chase Bank N.A.
Due to low trading/ conversion volume in GDR, the Board of Directors of the Bank at its
meeting held on April 20, 2019 has decided to terminate the GDR program. The requisite
notice of termination is being issued to the custodian and the depository.
Capital Adequacy Ratio (CAR)

As on March 31, 2019 your Bank's total CAR, calculated in line with Basel lIl capital
regulations, stood at 17.1 per cent well above the regulatory minimum of l1.025 per cent
including the Capital Conservation Buffer of 1.875 per cent. Of this, Tier I CAR was 15.8 per
cent. The effect of the proposed dividend has been taken into account in computing these
ratios.

Other Statutory Disclosures

Number of Meetings of the Board; attend once, meetings and constitution of various
Committees

The details of Board meetings held during the year, attendance of Directors at the meetings
and constitution of various Committees of the Board are included separately in the Corporate
Governance Report.

Extract of Annual Return

Pursuant to Section 134 (2) (a) and Section 92 (3) of the Companies Act, 2013, the extract of
the Annual Return in the prescribed format (MGT-9) is annexed as ANNEXURE 3 to this
Report. Further, the Annual Return of the Bank in the prescribed Form MGT-7 is available
on the website of the Bank at the link www.hdfcbank.com

Requirement for maintenance of cost records:

The Bank is not required to maintain cost records as specified by the Central Government
under section 148(1) of the Companies Act, 2013 Directors' Responsibility Statement

Pursuant to Section 134 (3) (c) read with Section 134 (5) of the Companies Act, 2013, the
Board of Directors hereby state that:

- In the preparation of the annual accounts, the applicable accounting standards have been
followed along with proper explanation relating to material departures, if any

- We have selected such accounting policies and applied them consistently and made
judgments and estimates that are reasonable and prudent so as to give a true and fair view the
state of affairs of the Bank as on March 31, 2019 and of the profit of the Bank for the year
ended on that date.
- We have taken proper and sufficient care for the maintenance of adequate accounting
records in accordance with the provisions of the Companies Act, 2013, for safeguarding the
assets of the Bank and for preventing and detecting fraud and other irregularities.

- We have prepared the annual accounts on a going concern basis. We have laid down
internal financial controls to be followed by the Bank and ensure that such internal financial
controls were adequate and operating effectively

- We have devised proper systems to ensure compliance with the provisions of all applicable
laws and that such systems were adequate and were operating effectively.

Compliance with Secretarial Standards

The Bank is in compliance with all applicable Secretarial Standards as notified from time to
time.

Auditors

The Bank's current Statutory Auditors are S. R. Batliboi & Co. LLP, Chartered Accountants.
S. R. Batliboi & Co. LLP were appointed as Statutory Auditor at the previous AGM of the
Bank, to hold office till the conclusion of the ensuing AGM. It is now proposed to appoint S.
R. Batliboi & Co. LLP, Chartered Accountants, as Statutory Auditor of the Bank for period
of three years with effect from the conclusion of the ensuing AGM, such that their total
appointment does not exceed 4 years, which is the maximum permissible term as per Reserve
Bank of India, at such fees as detailed in the Notice of the 25th AGM of the Bank.

Directors and Key Managerial Personnel

In compliance with Section 152 of the Companies Act, 2013, Mr. Srikanth Nadhamuni will
retire by rotation at the ensuing Annual General Meeting and is eligible for re-appointment.
During the year, Mr. Partho Datta and Mr. Bobby Parikh ceased to be Directors of the Bank
from close of business hours on September 29, 2018 and January 26, 2019 respectively, on
completing the maximum permitted tenure of eight years as per Banking Regulation Act,
1949. Your Directors place on record their sincere appreciation for the contribution made by
Mr. Partho Datta and Mr. Bobby Parikh during their tenure with the Bank and wishes them
well in their future endeavours.
Mr. Paresh Sukthankar, Deputy Managing Director, tendered his resignation from the Board
of the Bank on August 10, 2018 which came into effect from November 8, 2018. The Board
places on record their sincere appreciation for the contribution made by Mr. Paresh
Sukthankar during his tenure with the Bank and wishes him well in his future endeavours.

Mr. Sanjiv Sachar, Mr. Sandeep Parekh and Mr. M. D. Ranganath were appointed as
Additional Independent Directors on the Board of the Bank with effect from July 21, 2018,
January 19, 2019 and January 31, 2019 respectively, subject to the approval of the
shareholders.

The brief resume / details regarding the Directors proposed to be appointed/ re-appointed as
above are furnished in the report on Corporate Governance. There have been no changes in
the Directors and Key Managerial Personnel of the Bank other than the above.

Particulars of Employees

The information in terms of Rule 5 of the Companies (Appointment and Remuneration of

Managerial Personnel) Rules, 2014 is given in ANNEXURE 6 and ANNEXURE 7 to this
report.

Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo

(A) Conservation of Energy

Your Bank has undertaken several initiatives in this area such as:

-Installation of green locks and AC controllers in air conditioning machines in order to save
energy and support go-green initiative.

- Installation of energy capacitors at high consumption offices to control the power factor and
to reduce energy consumption

- All main signboards in branches switched off post 10 p.m.

- Put controls on usage of lifts, ACs, common passage lights and other electrical equipment

--Reduction of contract demand at Kanjurmarg Hub,

- Replacement of CFL Lamps with LED fixtures at Kanjurmarg Hub / WBO / Fort Mumbai /
Bank House Indore
- Provision of LED lamps at branches and offices Provision of solar panels for captive power
generation at our offices in Pune and Bhubaneswar, Noida (Sector 4)

Monitoring and energy saving initiative for 100 branches resulting in power saving of over
10 per cent. The Bank won an award in National Energy Efficiency Circle Competition
20177 Winner Best Energy Efficient Case study held by CII in May 2017. Considering the
benefits accrued, it further extended the monitoring programme to an additional 500 branches
across the country and the results have shown power savings over 10%

(B) Technology Absorption

Your Bank has been at the forefront of using technology absorption and evaluates innovative
technology with multiple fintech partners. It has launched a formal Consumer Durable Loans
portfolio and product with on-line real-time Digital API based collaboration with third party
and fintech application sourcing platforms. Your Bank is leveraging API based Service
Oriented Architecture and Middleware for enabling digital initiatives and empowering
relationship managers at branches with digital products and services platforms. Your Bank
has also begun using robotics and artificial intelligence in digital commeree, corporate supply
chain and payment settlement systems to reduce time to market and turnaround time.

(C) Foreign Exchange Earnings and Outgo

During the year, the total foreign exchange earned by the Bank was Rs. 1,720.4 crores (on
account of net gains arising on all exchange / derivative transactions) and the total foreign
exchange outgo was Rs. 2,130.5 crores towards the operating and capital expenditure
requirements.

Secretarial Audit

In terms of Section 204 of the Companies Act, 2013 and the Rules made thereunder, M/s.
BNP &Associates, Practicing Company Secretaries had been appointed as Secretarial
Auditors of the Bank for the financial year 2018-19. The report of the Secretarial Auditors is
enclosed as ANNEXURE 8 to this Report. There are no observations/ qualifications/
comments in the Report of the Secretarial Auditor.
Corporate Governance

In compliance with Regulation 34 and other applicable provisions of the Securities and
Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,
2015, a separate report on Corporate Governance along with a certificate of compliance from
the Secretarial Auditors, forms an integral part of this Report.

Business Responsibility Report

The Bank's Business Responsibility Report containing a report on its Corporate Social
Responsibility Activities and Initiatives in the format adopted by companies in India as per
the guidelines of the Securities and Exchange Board of India in this regard is available on its
web

site www.hdfcbank.com

Information under the Sexual Harassment of Women at Workplace (Prevention, Prohibition

and Redressal) Act, 2013

The relevant information is included in the Corporate Governance Report

Acknowledgement

Your Directors would like to place on record their gratitude for all the guidance and
cooperation received from the Reserve Bank of India and other government and regulatory
agencies. Your Directors would also like to take this opportunity to express their appreciation
for the hard work and dedicated efforts put in by the Bank's employees and look forward to
their continued contribution in building a 'World Class Indian Bank.' Conclusion

It has been a challenging year for the Indian economy externally as well as internally. The
good news is that despite the challenges of volatile oil prices, trade wars, rising interest rates,
and domestic uncertainties due to the impending general elections in India and slowing
consumption demand, India remained the world's fastest growing economy. Your Bank
which grew faster than the system in the year under review is well poised to tap the
opportunities of what is still an under penetrated market by leveraging its strong balance
sheet and franchise.
As always, your Bank will continue to be judicious. It will continue to leverage its
distribution strength and digital platforms to offer a similar experience to customers across
urban, semi-urban and rural India.

Needless to say, the Bank will continue to focus on its five core values, namely, Customer
Focus, Operational Excellence, Product Leadership, People and Sustainability. Its
commitment to the highest possible standards of corporate governance remains unwavering8
even as it embarks on the next stage of its evolution to continue delivering sustainable growth
to all its stakeholders.
 CHAPTER NO. 3

COMPANY PEOPLE

3.1 Introduction to HDFC Bank

The Housing Development Finance Corporation Limited (HDFC) was amongst the
first to receive an 'in principle' approval from the Reserve Bank of India(RB) to set up a bank
in the private sector, as part of the RBl's liberalisation 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.

3.2 Board of Directors

HDFC is a professionally managed organization with its Boardconsisting of eminent

persons, professionals who represent various segments including finance, taxation,
construction and urban policy & development. The Board primarily focuses on strategy
formulation, policy and control, designed to deliver increasing value to the various
stakeholder.
  Mrs. Shyamala Gopinath

Mrs. Shyamala Gopinath holds a Master's Degree in Commerce and is a CAIIB. Mrs.
Gopinath has over 39 years of experience in financial sector policy formulation in different
capacities at RBI. Mrs. Gopinath is a member of the following Committees of the Board of
the Bank.

Audit Committee

 Nomination and Remuneration Committee 
 Risk Policy and Monitoring Committee 
 Customer Service Committee (Chairperson) 
  Mr. Partho Datta

Mr. Partho Datta is an Associate Member of the Institute of Chartered Accountants of India.
Mr. Datta joined Indian Aluminium Company Limited (INDAL) and was with INDAL and
its parent company in Canada for 25 years and held positions as Treasurer, Chief Financial
Officer and Director- Finance during his tenure.

Mr. Datta is a member on the following Committees of the Board of the Bank: Audit
Committee

 Nomination and Remuneration Committee

 Corporate Social Responsibility Committee
 Risk Policy and Monitoring Committee
 Fraud Monitoring Committee
  Mr. Bobby Parikh

Mr. Bobby Parikh holds a Bachelor's degree in Commerce from the Mumbai University and
has qualified as a Chartered Accountant in 1987. Mr. Parikh is a Senior Partner with BMR &
Associates LLP and leads its financial services practice. Prior to joining BMR & Associates
LLP, Mr. Parikh was the Chief Executive Officer of Ernst & Young in India and held that
responsibility until December 2003. Mr. Parikh worked with Arthur Andersen for over 17
years and was its Country Managing Partner, until the Andersen practice combined with that
of Ernst & Young in June 2002

Mr. Parikh is a member on the following Committee of the Board of the Bank:

Audit Committee (Chairman)

 Nomination and Remuneration Committee (Chairman)

 Corporate Social Responsibility Committee
 Credit Approval Committee
  Mr Keki Mistry

Mr. Keki Mistry holds a Bachelor's Degree in Commerce from the Mumbai University. Mr.
Mistry is a Fellow Member of the Institute of Chartered Accountants of India. Mr. Mistry is a
member of the following Committees of the Board of the Bank:

 Fraud Monitoring Committee

 Customer Service Committee
 Credit Approval Committee (Chairman)
  Mrs.Renu Karnad

Mrs. Renu Kamad is a graduate in law from the Mumbai University and also holds a
Master's Degree in Economics from Delhi University. Mrs. Karnad is a Parvin Fellow-
Woodrow Wilson School International Affairs, Princeton University, U.S.A. Ms. Karnad is a
member on the following Committees of the Board of the Bank:

 Stakcholders' Relationship Committee

 Corporate Social Responsibility Committee (Chairperson)
 Risk Policy and Monitoring Committee (Chairpersorm)
  Mr. Aditya Puri

Mr. Aditya Puri holds a Bachelor's degree in Commerce from Punjab University and is an
Associate Member of the Institute of Chartered Accountants of India. Mr. Puri has been the
Managing Director of the Bank since September 1994. Mr. Puri has nearly 40 years of
experience in the banking sector in India and abroad. Mr. Puri is a member of the following
Committees of the Board of the Bank:

 Stakeholders' Relationship Committee

 Corporate Social Responsibility Committee
 Risk Policy and Monitoring Committee
 Credit Approval Committee
 Customer Service Committee
 Fraud Monitoring Committee
 Premises Committee
  Mr Paresh Sukthankar

Mr. Paresh Sukthankar completed his graduation from Sydenham College, Mumbai and
holds a Bachelor of Commerce (B.Com) degree from University of Mumbai. He has done his
Masters in Management Studies (MMS) from Jamnalal Bajaj Institute (Mumbai). Mr.
Sukthankar has also completed the Advanced Management Program (AMP) from the
Harvard Business School.

 Mr. Sukthankar is a member on the following Committees of the Board of the Bank:
Corporate Social Responsibility Committee
 Stakeholders' Relationship Committee
 Risk Policy and Monitoring Committee
  Mr. Kaizad Bharucha

Mr. Kaizad Bharucha holds a Bachelor of Commerce degree from University of Mumbai. He
has been associated with the Bank since 1995. In his current position as Executive Director,
he is responsible for Wholesale Banking covering areas of Corporate Banking, Emerging
Corporate Group, Business Banking, Capital Markets & Commodities Business, Agri
Lending, Investment Banking, Financial Institutions & Government Business and
Department for Special Operations. Mr. Bharucha is a member on the following Committees
of the Board of the Bank:

 Credit Approval Committee

3.3 BUSINESS FOCUUS

HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to

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

The bank is committed to maintain the highest level of ethical standards, professional
integrity, corporate governance and regulatory compliance. HDFC Bank's business
philosophy is based on four core values - Operational Excellence, Customer Focus, Product
Leadership and People.

3.4 MISSION STATEMENT OF HDFC BANK

 World Class Indian Bank.

 Benchmarking against international standards.
 To build sound customer franchises across distinct businesses
 Best practices in terms of product offerings, technology, service levels, risk
management and audit & compliance

3.5 MISSION 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 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.
3.6 BUSINESS STRATEGY

 Increasing market share in India's expanding banking

 Delivering high quality customer service
 Maintaining current high standards for asset quality through disciplined credit risk
management
 Develop innovative products and services that attract targeted customers and address
inefficiencies in the Indian financial sector.

3.7 NETWORK DISTRIBUTION

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable

network of over 1229 branches spread over 444 cities across India. All branches are linked on
an online real-time basis. Customers in over 120 locations are also serviced through
Telephone Banking.

The Bank's expansion plans take into account the need to have a presence in all major
industrial and commercial centres where its corporate customers are located as well as the
need to build a strong retail customer base for both deposits and loan products. Being a
clearing/settlement bank to various leading stock exchanges, the Bank has branches in the
centres where the NSE/BSE has a strong and active member base.

The Bank also has a network of about over 2526 networked ATMs across these cities.
Moreover, HDFC Bank's ATM network can be accessed by all domestic and international
Visa/MasterCard, Visa/ MasterCard, Visa Electron/Maestro, Plus/Cirrus and American
Express Credit/Charge cardholders.

3.8 PROMOTER

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 a
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.

3.9 MANAGEMENT

Mr. C.M. Vasudev has been appointed as the Chairman of the Bank with effect
from 6th July 2010 subject to the approval of the Reserve Bank of India and the shareholders.
Mr. Vasudev has been a Director of the Bank since October 2006.

Are tired IAS officer, Mr. Vasudev has had an illustrious career in the civil services and has
held several key positions in India and overseas, including Finance Secretary, Government of
India, Executive Director, World Bank and Government nominee on the Boards of many
companies in the financial sector.

The Managing Director, Mr. Aditya Puri, has been a professional banker for over 25 years,
and before joining HDFC Bank in 1994 was heading Citibank's operations in Malaysia,.

The Bank's Board of Directors is composed of eminent individuals with a wealth of

experience in public policy, administration, industry and commercial banking. Senior
executives representing HDFC are also on the Board.

3.10 TECHNOLOGY

HDFC Bank operates in a highly automated environment in terms of information

technology and communication systems. All the bank's branches have online connectivity,
which enables the bank to offer speedy funds transfer facilities to its customers. Multi-branch
access is also provided to retail customers through the branch network and Automated Teller
(ATMs).

The Bank has made substantial efforts and investments in acquiring the best technology
available internationally, to build the infrastructure for a world class bank. The Bank's
business is supported by scalable and robust systems which ensure that our clients always get
the finest services we offer.

The Bank has prioritised its engagement in technology and the internet as one of its key
goals and has already made significant progress in web-enabling its core businesses.
3.11 BUSINESS

HDFC Bank offers a wide range of commereial and transactional banking

servicesand treasury products to wholesale and retail customers. The bank has three key
business segments.

 Wholesale Banking Services

The Bank's target market ranges from large, bluechipmanufacturing companies in the Indian
corporate to small & mid-sized corporates and agri-based businesses. For these customers,
the Bank provides wide range of commercial and transactional banking services, including
working capital finance, trade services, transactional services, cash management, etc.

Thebank is also a leading provider of structured solutions, which combine cash management
services with vendor and distributor finance for facilitating superior supply chain
management for its corporate customers.

 Retail Banking Services

The objective of the Retail Bank is to provide its target market customers a full range of
financial products and banking services, giving the customer a one-stop window for all
his/her banking requirements. The products are backed by world class service and delivered
to customers through the growing branch network, as well as through alternative delivery
channels like ATMs, Phone Banking, Net Banking and Mobile Banking.

The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and
the Investment Advisory Services programs have been designed keeping in mind needs of
customers who seek distinct financial solutions, information and advice on various
investment avenues.

The Bank also has a wide array of retail loan products including Auto Loans, Loans against
marketable securities, Personal Loans and Loans for Two-wheelers.

3.12 Treasury

Within this business, the bank has three main product areas - Foreign Exchange and
Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the
liberalisation of the financial markets in India, corporates need more sophisticated risk
management information, advice and product structures.

3.13 Services offered by the company

Personal Banking

I. Accounts & Deposits

2. Loans

3. Cards

4. Forex

5. Investments & Insurance

NRI Banking

1. Accounts & Deposits

2. 3. Investments & Insurance Loans Payment Services

3.14 ACHIVEMENT/AWARDS

HDFC Bank began operations in 1995 with a simple mission: to be a "World-class

Indian Bank". We realised 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.
 CHAPTER NO. 4

SWOT ANALYSIS

S-STRENGTH OF HDFC BANK:

HDFC bank is the second largest private banking sector in India having 2,201
branches and 7,110 ATM's HDFC bank is located in 1,174 cities in India and has more than
800 locations to serve customers through Telephone banking The bank's ATM card is
compatible with all domestic and international Visa/Master card, Visa Electron/ Maestro,
Plus/cirrus and American Express. This is one reason for HDFC cards to be the most
preferred card for shopping and online transactions HDFC bank has the high degree of
customer satisfaction when compared to other private banks The attrition rate in HDFC is low
and it is one of the best places to work in private banking sector HDFC has lots of awards and
recognition, it has received Best Bank' award from various financial rating institutions like
Dun and Bradstreet, Financial express, Euro money awards for excellence, Finance Asia
country awards ete HDFC has good financial advisors in terms of guiding customers towards
right investments.

W-WEAKNES OF HDFC BANK

HDFC bank doesn't have strong presence in rural areas, where as ICICI bank its direct
competitor is expanding in rural market HDFC cannot enjoy first mover advantage in rural
areas. Rural people are hard core loyal in terms of banking services. HDFC lacks in
aggressive marketing strategies like ICICI. The bank focuses mostly on high end clients
Some of the bank's product categories lack in performance and doesn't have reach in the
market the share prices of HDFC are often fluctuating causing uncertainty for the investors
36.

0-0PPORTUNITIES OF HDFC BANK

HDFC bank has better asset quality parameters over government banks, hence the
profit growth is likely to increase the companies in large and SME are growing at very fast
pace. HDFC has good reputation in terms of maintaining corporate salary accounts HDFC
bank has improved it's bad debts portfolio and the recovery of bad debts are high when
compared to government banks HDFC has very good opportunities in abroad Greater scope
for acquisitions and strategic alliances due to strong financial position.

THREATs OF HDFC BANK

The Non-banking financial companies and new age banks are increasing in India The
HDFC is not able to expand its market share as ICICI imposes major threat The government
banks are trying to modernize to compete with private banks RBI has opened up to 74% for
foreign banks to invest in Indian market.

4.2 SUGGESTION

 Majority of customer are satisfy with HDFC bank service and prefers to use HDFC
bank.
 Majority of customers are aware of services provided by HDFC bank.
 Majority of customers fined banking facility of HDFC bank satisfactory.
 .Majority of customers are willing to recommended HDFC bank to their friends.
 Respondents says that they are facing issues regarding time and facility while few has
 Some issue with employee behaviour.
 The perception of customer regarding the bank is satisfactory because majority of the
customer are satisfied with the bank and they also recommend the product of the
bank.
 The more prefers extra service is Net banking and less prefers service are bill
Payment, ATM and mobile banking.
 Majority of customer are satisfy with dealing of employees.
 Main factor that attracts customers towards banks are services of bank.

4.3 CONCLUSION

At the end I would like to conclude that the Indian banking market is growing at an
astonishing rate. HDFC bank has distribution network of 4,715 branches and 12,260 ATMs
across 2,657 cities in India. The majority of customers are prefers HDFC bank but bank
should target rest of customer who are not satisfied. Customers are aware about bank services
but bank should try to create more awareness among people.
  More stress should given on the advertisement and promotion activities.
 The bank should make more effort in improving good relationship with customer.
 The bank should enhance their service according to customer.
 The bank should make its procedure less time consuming.
 The bank should make effort to aware the customer about all their extra services.

4.4 LIMITATION QE THE STUDY

I am sure that in this project there would be few shortcomings sincere effort has been made
to eliminate errors as far as possible but few would remain due to limitation of study. There
are:

 Limited sample size

 The information given by respondents might be bias
 Some of respondent might not be interested to give correct information

4.5 BIBLIOGRAPHY

References

Kotler Philip marketing management, (Pearson Education, 12" coition) Malhotara k. Naresh,
Marketing Strategies (Applied Orientation, 5h Edition) Zetmal V.A, Service Marketing
(Integrated Customer, 4th edition) M.K. Rampal: Service Marketing

Websites:

www.en.wikipedia.org
www.hdfcbank.comn
www.quora.com
www.moneycontroLcom
www.marketresearch.com
 CHAPTER NO.5

FINANCIAL SERVICES PROVIDED BY HDFCBANK

Meaning of financial services

Financial service is part of financial system that provides different types of finance through
various credit instruments, financial products and services. In financial instruments, we come
across cheques, bills, promissory notes, debt instruments, letter of credit, etc.

In financial products, we come across different types of mutual funds. extending various
types of investment opportunities. In addition, there are also products such as credit cards,
debit cards, etc.

In services we have leasing, factoring, hire purchase finance etc. Through which various
types of assets can be acquired cither for ownership or on leases. There are different types of
leases as well as factoring too.

Thus, financial services enable the user to obtain any asset on credit, according to his
convenience and at a reasonable interest rate

Importance of Financial Services

It is the presence of financial services that enables a country to improve its economic
condition whereby there is more production in all the sectors leading to economic growth.

The benefit of economic growth is reflected on the people in the form of economic prosperity
wherein the individual enjoys higher standard of living. It is here the financial services enable
an individual to acquire or obtain various consumer products through hire purchase. In the
process, there are a number of financial institutions which also earn profits. The presence of
these financial institutions promotes investment, production, saving etc.

 Vibrant Capital Market. 
 Expands activities of financial markets. 
 Benefits of Government. Economic Development. 
 Economic Growth. Ensures Greater Yield. Maximizes Returns. 
 Minimizes Risks. Promotes Savings. 
 Promotes Investments. 
 Balanced Regional Development. 
VARIQUS TYPES QF FINANCIALSERVICES PROVIDED BY HDEC BANK

5.1 Business loans

Arranging for adequate funds is an essential part of establishing a business. But it is not just
for starting the business, but also for maintaining it in the long term, which is equally
important. Funds are required to set up business and machinery. to lease a space and for
completing the specific working capital requirements. Working capital requirements include
day to day expenses like labourer‟s wages, maintenance/rent of the space, accounts payable,
petty cash expenses etc.

HDFC bank, one of the leading commercial banks in India offers a vast range of products and
services in tem deposits and loans. Organizations often take a HDFC Bank business loan so
that they can operate their businesses smoothly without any interruption occuring due to
scarcity of funds.

About Business Loans

Business loans play a pivotal role in successfully achieving these requirements as it provides
funds to the business as and when required. With options of taking short term, medium term
and long term loans, the flexibility offered by various HDFC Bank business loans have
encouraged businesses to avail a loan for key purposes like expansion of business or buying a
land/factory space, purchase of machinery/inventory and for increasing the working capital
Business loans are broadly categorized in 2 types:

 Secured business loans and

 Unsecured business loans.

Qualifying Criteria for HDFC Bank business loan

Business loans can be applied for by the proprietor, partnership firms, partners, director of
private company who are operating businesses in the manufacturing, trading or services
industry. However, the age of the borrower should be not less than 21 years at the time of
application and not more than 65 years at the time the loan maturity.

Documents Required for Applying For Business Loans

Following documents are required to be provided by the borrower for obtaining business
loan:
  Address proof- Aadhaar card/ Driving license/ Voter card/ Passport
 Pan Card of the proprietor/firm/company
 Bank account statement for last 6 months
 Identity proof- Pan card/ Aadhaar card/ Driving license/ Voter card/ Passport
 License used for carrying out trade activities like sales tax license, establishment
license. License provides evidence regarding business continuation.
 Ownership proof of office or residence

The Housing Development Finance Corporation Limited (HDFC) was founded in the year
1994 and is headquartered at Mumbai, Maharashtra. It is the largest bank in India in terms of
market capitalization and the second largest private bank in India by measure of its assets.
HDFC was amongst the first to get 'in principle' approval from the Reserve Bank of India
(RBI) for establishing a bank in the private sector, under RBls liberalization of the Indian
Banking Industry in 1994.

Car loans provided by HDFC Bank are amongst the best car loans in India. The bank offers
car loan for both new and pre-owned cars. Due to its tie-up with different authorized car
dealers across India, HDFC provides car finance plans for a wide range of cars.

HDFC Bank Car Loan Eligibility based on employment:

Salaried Applicant

This category comprises salaried employees ranging from all public and private company
employees to doctors and CA who draw salaries for their employer.

Self-employed Applicant

Self-employed individuals can be further grouped under the following sub-heads

Sole Proprietorship: This category includes self-employed individuals who operate their
business in the services or manufacturing sector as sole proprietors.

Partnership Firms: This category includes self-employed partnership style firms in any
sector.

Private Limited Companies: For those who own a private limited company engaged in any
business.
 Public Limited Companies: If you are a director in a public limited company in the
business of manufacturing, trading or services.

5.3 CREDIT CARD

HDFC Bank issues a multiple range of Credit Cards under different varieties with unique features and 
offers. Each HDFC Bank Credit card promises the customer attractive schemes and discounts. Let us 
take a look at the different types of Credit Cards issued by the bank. 
 
Table Key HDFC Bank credit card 
 
Card Name Joining‟s / Annual Rewards Suitable For
Fees
HDFC Infinia Rs.10,000 (Joining Exclusive Reward across High net worth
and Annual fees) Multiple categories like individuals looking for
travel, lifestyle, dining a card that complements
and more their lifestyle
HDFC Regalia Rs.2500 (Joining Complimentary For those who
and Annual fees) membership to leading appreciate the finer
lounge access programs, things in life and seek
dining an lifestyle to earn from their
privileges,etc. luxury spends.
JetPriviege Rs.1000 (Joining / Earn JP Miles on very The compulsive
HDFC Bank Annual fees) expense with traveller and those who
Diner‟s Club complimentary lounge want to travel and live it
access and other travels up in style.
benefits.
Titanium Times Rs.500 (Joining / Discounts on movies, Those seeking to get the
Card Annual Fees) dining ,fuel every day of best possible benefits
the year along with from all expenditures
rewards points on all they make.
transactions
Snap deal Rs.500 (Joining / Special discounts on Snap Compulsive online
HDFC Card Annual Fees) deal, Clear trip and Free shoppers who prefer the
Charges. Rewards Points convenience and want
 on every transaction. to earn rewards on
online spends
HDFC Rs.500 (Joining / Discounts at leading The working women
Solitaire Annual Fees) outlets like Shoppers Stop seeking a credit card
along with rewards on that rewards lifestyle,
grocery shopping and day- to-day and dining
dining. expenses.
Bharat Cash Rs.500 (Joining / Cash Back offers on Those seeking a basic
Bank Annual Fees) IRCTC, Bill Payments credit card that takes are
and fuel. Additional offers of and rewards day to
on Smart Buy, Payzapp expenses in the form of
and Easy EMI cash back.
Diners Club Rs.1000 (Joining / Extra rewards when The compulsive
Rewardz Annual Fees) booking flights/hotels globetrotter who wants
online. Also get rewarded to et rewarded for
for DTH/mobile travelling near and far.
recharges, movies and
more.
HDFC Money Rs.500 (Joining / Reward points on every Individuals who want a
Bank Annual Fees) expense along with fuel credit card to take care
surcharges waiver. of their daily needs with
Additional rewards on the option the convert
online expenses. reward points to cash.
5.4 HDFC Bank Educational Loan

Education has emerged as the cornerstone of human society and as the demand for education
in order to gain a competitive advantage has increased, so has the cost of education both
within India and overseas. With the view of providing today's and future generations with the
means of pursuing higher studies so that they can achieve their dreams, HDFC Bank has
introduced its range of educational loans that aim to satisfy the requirements of every type of
young individual who desires to pursue further studies.

Education Loan for Indian Education Features:

 The loan process is very fast with respect to sanction/disbursal. The documentation
process is Simple and the bank also provides for doorstep services for a hassle-free
experience.
 You need not worry about hidden education loan charges and the procedure is
completely transparent. The charges are all mentioned in detail at the time of loan
sanction. Loans up to Rs. 7.5 lakhs may be obtained without any collateral or security
requirements.
 For higher amounts not exceeding Rs. 10 lakhs, collateral is required to be secured
against the loan. The bank approved list of collaterals includes property (residential),
HDFC Bank Fixed Deposits, Life Insurance Policy. National savings Certificates,
Kisan Vikas Patra to name a few.

HDFC Bank offers a wide array of Fixed Deposit Schemes to fulfil the requirements of every
individual for a short term or long term tenure. The bank provides various types of deposit
schemes like Regular Fixed Deposit Account or Recurring Deposit scheme and Tax-saving
Fixed Deposit Account to help individuals save a proportionate amount monthly. Further, the
deposited amount would earn returns periodically at a particular interest rate.

HDFC FD Rates 2017

Interest Rates (in %)

FD Tenure Regular Citizens Senior Citizens
7-14 days 3.50% 4.00%
15-29 days 4.25% 4.75%
30-45 days 5.50% 6.00%
46-60 days 5.75% 6.25%
61-90 days 5.75% 6.25%
91 days -6 months 5.75% 6.25%

HDFC FIXE DIPOSITE SCHEEM

 HDFC Regular Fixed Deposit Scheme

 HDFC Tax Saving Fixed Deposit Scheme
 HDFC Recurring Deposit

5.6 GOLD LOANS

HDFC Bank offers gold loan under its Sampoorna Bharosa Gold Loan which is available
instantly from any of the HDFC's Bank branch. The loan promises cash against gold which is
easy to avail and also easy to pay. The bank charges easy and affordable EMIs, affordable
interest rates and the opportunity to liquidate the gold loan at any time.

The loan amount can also be used for personal expenses like marriage, education of child,
building a property, going on a leisurely vacation, etc. However, the loan amount cannot be
used to buy gold coins or jewelry or for any other speculative purposes as it is prohibited by
the bank issuing the loan.

FEATUERS

 The loan sanction and disbursal process is fast and simple. The documents required
are simple in nature and after submitting the necessary documents, the loan is issued
instantly.
 Complete transparency in granting the loan. It means that there are zero hidden
charges, reasonable processing fees and complete clarity on the loan process with up-
to-date information about loan application status at each stage
 Loans are issued for a minimum amount of Rs.50, 000 and thereafter for higher
amounts. However, in keeping with the requirements of the rural market, loans of
values lower than Rs.50, 000 are also offered to rural customers.
 The loan promises easy liquidity which means that the customer can repay the entire
loan anytime without worrying about the foreclosure charge

GOLD LOAN INTREST RATE

Interest Rate 11.00% onwards
Repayment Period 6 month to 4 year
M in./Max. Loan Quantum Rs. 0.5 lakhs/Rs.10 lakhs
Gold Loan Processing Fees Ranges from Zero to 0.5% of loan sanctioned
Prepayment Charges Ranges from Nil to 1% of loan principal prepaid
Penal Charges 2% over original loan interest rate on overdue amount

5.7 HDFC Bank Home Loan

With a customer base of 4.4 million satisfied customers, HDFC is a pioneer in

the home loan industry with over 35 years of lending history. Loans offered by HDFC bank
are of different categories which can be picked as per the customer's requirements like
purchase or construction of a house, renovation or improvement, extension, or transfer of an
existing home loan from other banks or financial institutions. The rates of interest on HDFC
Housing Loans are also quite attractive with a lower interest rate for female applicants or co-
owners of a loan.

HDFC HOME LOAN INTREST RATE

HDFC Home Loan Interest Rate

Interest Rate 8.35% onwards

Processing Charges 0.5% of loan amt. or Max. Rs. 10,000

Loan Tenure Up to 30 years

Loan Amount Max. amount depends on applicant profile and other
factors

Cheque Bounce Charges Rs. 200 per instance

Cheque / Instrument Swap Charges Rs.200 per instance
Prepayment or Foreclosure Nil if floating, up to 2% for fixed rate
Charges

5.8 HDFC LOAN AGAINTS PROPERTY

Everyone needs money at some point of time or the other. Though borrowing from
friends and family is usually a preferred option for small sums, however, if the amount
required is large, then a better option would be to leverage a property you own and get the
necessary money to meet the expenses. You can use your house or a piece of land you own as
collateral to take a loan against property from the bank.

HDFC Bank offers Loan against Property wherein the customer can avail a higher
loan amount by mortgaging their property as collateral. The funds generated from these loans
can be used for personal or business related purposes. The Equated Monthly Instalment i.e.
EMI on property loan is so low that the customer can utilize the funds without worrying
about affordability.

FEATURES OF HDFC BANK LOAN AGAINTS PROPERTY

 loan can be availed against the mortgage of your residential as well as commercial
property. So, a building owned by you where you already reside or would reside
sometime in the future can be mortgaged for the loan and so can be a property which
is used for your business.
 The rate of interest which is charged on the loan granted by the bank is competitive
and at par with the rates of other banks or financial institutions. This makes the bank
retain the customers who choose the superior service quality of the bank's products at
similar rates of interest.
 The type of loan offered by the bank is flexible in nature and based on the applicant's
preferred choice. The applicant can choose a loan based on EMI payouts or a loan
that is Drop line Overdraft facility depending on the financial decision of the
customer.
 Longer repayment tenure is allowed for paying off the loan debt. Since the rate of
interest charged by the bank is also low, overall, the EMI incidence on the customer
 becomes low and affordable for the customer. This ensures easy repayment of the
debt on part of the borrower.

5.9PERSONAL LOAN BY HDFC BANK

HDFC offers Personal Loans to meet all types of expenses easily. The bank
promises simplified documentation and speedy approvals to avail a loan. A personal loan
from HDFC Bank can be availed online for convenience by completing the necessary
formalities. There is only one type of HDFC Personal loan and not multiple types of personal
loans.

HDFC PERSONAL LOAN INTREST RATE

For Salaried For Self-Employed

Interest Rate 10.99% onwards 10.99% onwards
Loan Tenure up to 5 years Up to 5 year
Loan Amount Min. Rs. 50.000 Min. Rs. 50.000
Processing Fee 2.5% of loan amount, min. 2.5% of loan amount, min.
Rs. 1000, max. Rs. 25,000 Rs. 1000
Pre-payment Charges Between 2% and 4% of Based on individual
amount pre-paid Customer profile
Foreclosure Charges Between 2% and 4% of Based on individual
outstanding principal customer profile

5.10 HDFC SAVING ACCOUNT

A savings account is a type of deposit held at a bank by the customers that lets them
keep money safe in return for modest interest rate provided by the bank. Savings with HDFC
Bank is preferred by the people in the country as the services provided by the bank in
addition to the savings accounts allow individuals to have a user-friendly banking experience
all under a single roof.
Savings with HDFC Bank has always been a favoured option as the bank has a multitude of
saving account solutions for customers with all types of needs and requirements. The
classification of savings accounts is based on gender, occupation, income groups, etc. that
make the account ideal for the individual accountholder.

 Save money and earn interest on your HDFC Bank saving account deposit.
 Savings accounts facility of HDFC Bank also issues cheques for payment to its
recipients Transfer of money with ease via internet and mobile apps.
 Debit card issued under the savings account with HDFC Bank is used for cash
withdrawals and purchases
 HDFC Bank also has the option of joint savings accounts.

TYPES OF SAVING ACCOUNT

Savings Max Account-

A premium savings account with a host of features to satisfy everyone's needs. Here are the
features of the account:

 Free cash withdrawals and balance enquiries across all domestic HDFC or non-
HDFC Bank ATMs
 Free for life Titanium Royale Debit Card
 Free for life Women's Advantage or International Debit Card for all accountholders.
 Free payable-at-par cheque book with no usage charges
 Free Demand Draft on HDFC Bank locations of up to Rs. I lakhs per day
 50% off on locker rental calculated on a pro-rated basis for the first year of allotment

Regular Savings Account –

 This is a simple savings account with HDFC Bank which is designed to meet the
daily banking needs of the individuals offering the following features:
 Wide network of HDFC Bank branches and about 11, 000 ATMs for daily banking
needs
  Convenience of banking with Net Banking, Mobile Banking and Phone Banking
services
 An International Debit Card is issued to accountholders which can be used for
shopping and other purchases.
 Bill Pay facility is provided by the bank wherein customers can pay their utility bills
online

Women's Savings Account –

A HDFC Bank women's savings bank account designed specifically for women customers
giving them special privilege and offers meeting their banking and lifestyle needs. The details
of the Account are as follows:

 Easy Shop Women's Advantage Debit card with a host of benefits like Re.1 Cash
back for every Rs.200 spent Personal Accident Death Cover of Rs.2 lakh and
transaction limit of Rs.25, 000 and shopping limit of Rs.1.25 lakh per day.
 If the balance in the account exceeds Rs. 1 lakh, the deposit amount in excess of
Rs.75, 000 is transferred to a Fixed Deposit account for a period of 1 year and 1 day.
 Free 25 leaves multi-city payable-at-par cheque book per quarter, passbook facility
and email statements.
 Free lifetime Bill Pay and folio maintenance charges on Demat Account for a year

Kid's Advantage Account –

A savings bank account for kids to teach them the value of money and simple banking
processes. Here are the features of the account:

 The account can be opened by parents for their minor kids provided either of the
parent has an existing savings account with bank. If the parent does not have a
savings account, it needs to be opened first before opening a Kid's Advantage
Account.

Senior Citizens Account-

A savings bank account for senior citizens catering to their banking needs. HDFC Bank
offers several features and benefits. Some of them are as follows:

 Free lifetime Easy Shop Interactional Debit Card with a spending limit of 1.25 lakhs.
  Cash withdrawals of up to Rs.25, 000 on the international debit card and on being a
woman customer, additional advantage of Woman's Advantage Debit Card.
 Free PAP cheque books, passbook facility, free SMS alerts, email statements, NEFT
facility.

Family Savings Group Account –

Unique accounts wherein the entire family can be enrolled so that the entire family's banking
needs are met by a single account. The features and benefits of these HDFC Bank savings
accounts are as follows:

 Free Easy Shop International Debit card with 5 free cash withdrawals on any bank's
ATM.
 Free bill payment, PAP cheque book, email statements and passbook facility.
 Free DDs or MC's on HDFC Bank locations up to Rs.50, 000 Convenience of
banking with Net Banking. Mobile Banking and Phone Banking services
 50% off on the locker rental on a pro-rated basis in the year of allotment

Basic Savings Bank Deposit Account –

It is a zero balance account which has the following features:

 NEFT facility to transfer funds across accounts

 Convenience of banking with Net Banking, Mobile Banking and Phone Banking
services
 A free RuPay Card for accessing the account
 4 free cash withdrawals can be made per month at branches

Institutional Savings Account –

A zero balance Savings account for institutions to cater to their banking needs. The features
and benefits are as follows:

A Trust, association, society, club, NGO, charitable hospital, educational institute and
Section 25 companies can open this account.
 CHAPTER NO. 6

RECOMANTATION

 Reliability is an obvious place to start. Customers of the bank want to know their
resources are safe and within trustworthy institutions. A way to ensure this peace of
mind would be to take steps to ensure bank employees are well trained, so each bank
associate is able to offer complete and comprehensive information at all times
 Responsiveness, again when associated with a well-trained staff and timely answers to
service-related questions, would make significant inroads into causing HDFC bank be
regarded as responsive.
 Intangibles please customers just as much as tangibles in the banking industry. People
tend to visit the same branch of a bank over and over again. Usually, this is a location
close to their home or their workplace. It makes sense that bank employees would be
encouraged to learn to recognize these regular customers, learn their names, and begin
to identify their basic service requirements.
 Learning to understand customers' needs will allow bank associates to offer enhanced
services. perhaps lowering customers” „banking costs and increasing their investment
potential. This could also open up the possibility of increased profits for banks, for
when perceived as more service and customer oriented, they will, in effect, become a
useful and pleasant way to "shop."
 Keeping the bank with up-to-date technologically are important factors. If the staff
inside is pleasant and well-informed, in an aesthetically pleasing environment, then
customer satisfaction will be high.
 The five-dimensional structure could possibly serve as a meaningful framework for
tracking bank's service quality per finance over time and comparing it against the
performance of competitors..
 Thus, the banking industries must continuously measure and improve these
Dimensions in order to gain customers
 CHAPTER NO.7

REVIEW OF LITERATURE

A literature review is a description of the literature relevant to a particular field or

topic. It gives an overview of what has been said, who the key writers are, what are the
prevailing theories and hypotheses, what questions are being asked and what methods and
methodologies are appropriate and useful. As such, it is not in itself primary research, but
rather it reports on other findings.

Article 1
Title: Kotler Philip marketing management, (Pearson Education, 12th edition)

Author: Baldinger and Rubinson

About the Research:

In their article, perceived that customer loyalty was concerned with the likelihood of a
customer returning, making business referrals, providing strong word-of-mouth references
and publicity. Loyal customers were less likely to switch to a competitor due to price
inducement, and these customers made more purchases compared to less loyal customers.
However, customers who were retained may not always be satisfied and satisfied customers
may not always be retained. Customers may be loyal due to high switching barriers or the
lack of real alternatives; customers may also be loyal because they were satisfied, thus
wishing to continue with the relationship.

Article 2

Title: Marketing Strategies (Applied Orientation, 5th Edition)

Author: Royne Mercurio.

About the Research:

In his article, provided the initial direction in determining the proper SQ attributes to focus on
promotional efforts when banks have a target market at least partially defined by gender and
age. Further, gender and age were not the only characteristics on which marketing efforts
should be based. Therefore, other segmentation variables, such as psychographics,
geographies and benefits sought must be considered when developing marketing and
advertising strategies.
Article 3

Title: Customer Loyalty is Powerful Tool (Integrated Customer, 6h edition)

Author: Kandampully

About the Research:

In his article, focused that the customers at the time of service delivery interact closely with
the service providers and got an inside knowledge of the service organization. This
knowledge gave them an opportunity to critically assess the services provided and the service
provider. Thus service quality plays an important role in adding value to the overall service
experience. Also customers seek organizations that were service loyal i.e. aim to provide
consistent and superior quality of service for present and long term and organizations aiming
for this are bound to get customers' loyalty.

Article 4

Title: Customer Seek Organization for Service Loyalty, 4th Edition

Author: M.K. Rampal

About the Research:

Acknowledged that the internet banking was an innovative distribution channel that offered
less waiting time and a higher spatial convenience than traditional branch banking with
significantly lower cost structure than traditional delivery channels. Internet banking reduced
not only operational cost to the bank but also led to higher levels of customers' satisfaction
and retention. As a result internet banking was very attractive to banks and consumers', who
had higher acceptance to new technology.

Article 5

Title: Consumer Expectation of Service Provider (Integrated Customer, 5th edition)

Author: Natarajan, R. Balaram, A. and Venkata Ramana, S.

About the Research:

In their article, reported on the development and application of a service template as a

diagnostic tool for identifying opportunities for improvements in the service package. The
operations in the branch of a bank in Bangalore, India, provide the context. For twenty one
service attributes, the gap between the expectations of a target customer group and the actual
service experience was assessed through a customer survey. A service template graphically
displaying the mean values of the responses for the expectations and the perceived service
was constructed.

Article 6

Title: Service Marketing Strategies (Integrated Customer, 4h edition)

Author: Clinton O. Longenecker, Joseph A. Scazzero

About the Research:

In their article, indicated that a successful facility exhibited greater attention to the human
aspects of the quality process than the unsuccessful facility. For example, a greater degree of
management support for TQM, communication and teamwork between managers and
workers, effective corrective action procedures and follow-up of quality problems. While this
study was limited in scope to two operations within the same organization, lessons for the
successful implementation of service quality could be drawn from this case study.
 CHAPTER NO. 8

DATA ANALYSIS

Question: AGE

AGE FREQUENCY PERCENTAGE

CATEGORY
18-23 Years 10 20
24-29 Years 17 34
30-35 Years 15 30
35 Years and Above 8 16
TOTAL 50 100

AGE

35 and above 18‐23 YEARS

16% 20%

30‐35 YEARS 
30% 
24‐29 YEARS
34%

INTERPRETATION: - From the table and graph above it can be seen that 20%
respondent‟s Age are 18 to 3 years. 34% respondent‟s age are 24 to 29 years. 30%
respondent‟s age are 30 to 35 years 16% respondent‟s age are 35 to above years.
Question: Educational qualifications

CATEGORY FREQUENCY PERCENTAGE

Under Graduate 13 26
Graduate 20 40
Post Graduate 17 34
TOTAL 50 100

EDUCATIONAL QUALIFICATION

UBDER GRADUATE
POST GRADUATE 26%
34% 

GRADUATE
40%

INTERPRETAION:- From the table above it can be seen that 26% respondents are Under
graduate; 40% respondents are Graduate. 34% respondents are Post graduate.
Q.1 Do you like the services of the bank?

YES 41
NO 9
TOTAL 50

OPTION

NO
18%

YES
82%

INTERPRETATION:- From the table and graph above it can be seen that 41% of customer
like the services of the HDFC bank 9% of customer do not like the services
Q.2 Which type of services do you like the most?

TRADITONAL 10
MORDEN 15
BOTH 25
NON OF THEM 0
TOTAL 50

OPTION
NONE
4%

TRADITIONAL
20%

BOTH 
46% 
MODERN
30%

INTERPRETATION:- From the table and graph above it can be seen that. 40% of
respondent like both traditional as well as modern technique. distribution of the technique are
20% for traditional and 30% for morden.
Q.3 Do you think services of your bank is better than other bank?

YES 44
NO 6
TOTAL 50

OPTION 
 
2nd Qtr 
12% 
 
 
 
 
 
 
NO 
88% 

INTERPRETATION: - From the table and graph above it can be seen that 88%of customer
feels services of HDFC bank is better than other bank 12% of customer feels other bank have
better services than HDFC bank
Q.4 Rate the services of your bank on the rate of 5?

OUTSTANDING 8
V.GOOD 12
GOOD 20
AVERAGE 8
POOR 2
TOTAL 50

OPTION

AVERAGE
7%
OUTSTANDING 
GOOD  26%
27% 

V.GOOD
40%

INTERPRETATION:- From the table and graph above it can be seen that 40% of
respondent rated the services as good 24% as very good, 16% as outstanding and 16% as
average.
Q.5 Do you fell your bank is good in technology?

YES 39
NO 11
TOTAL 50

OPTION 
 
NO 
22% 
 
 
 
 
 
YES 
78% 

INTERPRETATION:- From the table and graph above it can be seen that. 78% respondent
feels that the technology that the HDFC bank provision is good. And 22% fells that the
technology is not good.
Q.6 Whether they need any improvement?

YES 14
NO 36
TOTAL 50

OPTION 
 
YES 
28% 
 
 
 
 
NO 
72% 

INTERRETATION:- From the table and graph above it can be seen that 72% of respondent
feels that he HDFC bank needs an improvement. And 20%of respondent feels that the HDFC
ban do not need any changes
Q.7 Do employees behave in a good manner?

YES 47
NO 3
TOTAL 50

OPTION 
 
NO 
6% 
 
 
 
 
 
 
YES 
94% 

INTERPRETATION:- From the table and graph above it can be seen that 94% of
employees behave in a god manner. And 6% of employees feels there is n need of
improvement.
Q.8 If given a chance whether you well use services of other bank

YES 17
NO 33
TOTAL 50

OPTION 
 
 
YES 
34% 
 
 
 
NO 
66% 

INTERPRETATION:- From the table and graph above it can be seen that. 66% of
respondant feels that they will not use the services of other bank. And 34% of respondant will
use the services of other bank if given a chance.
 DECLARATION BY LEARNER

I the undersigned Miss / Mr. Sakshi Arvind Bagde here by, declare that the work embodied
in this project work titled “ Financial Services Provided By HDFC Bank’’. Runs my own
contribution to the research work carried out under the guidance of Shraddha Bari is a
result of my own research work and has not been previously submitted to any other
University for any other Degree/ Diploma to this or any other University.

Whenever reference has been made to previous works of others, it has been clearly indicated
as such and included in the bibliography.

L here by further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.

Name and Signature of the learner

Certified by

Name and signature of the Guiding Teacher

 CERTIFICATE

This is to certify that Sakshi Arvind Bagde studying in the third year of Bachelors on
Banking and Insurance (BBI) program at K.M. Agrawal college if Arts, Commerce and
Science, Kalyan has completed the “customers relationship management in banking‟‟ as a
part of the curriculum requirement for Bachelor of Banking and Insurance (BBI) under the
guidance of Prof. Shraddha Bari.

Signature of the project guide

Name:

Date:
 ACKNOWLEDGMENT

To list who all have helped me is difficult because they arc so numerous and the depth is so
enormous.

I would like to acknowledge the following as being idealistic channels and fresh dimensions
in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do this
project. Provided.

I would like to thank my Principal, Dr. Anita Manna for providing the necessary facilities
required for completion of this project.

I take this opportunity to thank our Coordinator, Prof. Sujeet Singh for hid moral support
and guidance.

I would also like to express my sincere gratitude towards my project guide Prof. Shraddha
Bari whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference books and
magazines related to my project. Lastly, I would like to thank each and every person who
directly or indirectly helped me in the completion of the project especially my Parents and
Peers who supported me throughout my project.
 CHAPTER – 8

SUGGESTION

 Majority of customer are satisfy with HDFC bank service and prefers to use HDFC
bank.
 Majority of customers are aware of services provided by HDFC bank.
 Majority of customers fined banking facility of HDFC bank satisfactory.
 .Majority of customers are willing to recommended HDFC bank to their friends.
 Respondents says that they are facing issues regarding time and facility while few has
 Some issue with employee behaviour.
 The perception of customer regarding the bank is satisfactory because majority of the
customer are satisfied with the bank and they also recommend the product of the
bank.
 The more prefers extra service is Net banking and less prefers service are bill
Payment, ATM and mobile banking.
 Majority of customer are satisfy with dealing of employees.
 Main factor that attracts customers towards banks are services of bank.
 CHAPTER No . 9

CONCLUSION

At the end I would like to conclude that the Indian banking market is growing at an
astonishing rate. HDFC bank has distribution network of 4,715 branches and 12,260 ATMs
across 2,657 cities in India. The majority of customers are prefers HDFC bank but bank
should target rest of customer who are not satisfied. Customers are aware about bank services
but bank should try to create more awareness among people.

 More stress should given on the advertisement and promotion activities.

 The bank should make more effort in improving good relationship with customer.
 The bank should enhance their service according to customer.
 The bank should make its procedure less time consuming.
 The bank should make effort to aware the customer about all their extra services.
 CHAPTER No . 10

BIBLIOGRAPHY

References

Kotler Philip marketing management, (Pearson Education, 12" coition) Malhotara k. Naresh,
Marketing Strategies (Applied Orientation, 5h Edition) Zetmal V.A, Service Marketing
(Integrated Customer, 4th edition) M.K. Rampal: Service Marketing

Websites:

www.en.wikipedia.org
www.hdfcbank.comn
www.quora.com
www.moneycontroLcom
www.marketresearch.com