DEPARTMENT OF BUSINESS SCHOOL

PROJECT REPORT

Title Success strategies of HDFC Bank in Jammu & Kashmir

Submitted By:

Roll NO.

REGISTRATION NO.

Saima Gulzar------------- 02 Subeeha Rashid----------16 Humaira khurshid------- Aamir Hassan------------ Manan Matoo------------- Adil Farooq----------------

DEPARTMENT OF BUSINESS SCHOOL SSM COLLEGE OF ENGINEERING & TECHNOLOGY PATTAN (2013)

PREFACE
Undertake something is difficult, It will do you good, Unless you try to do something Beyond what you have already mastered You will never grow

RONALDE. OSBORN

BBA is a stepping-stone to the management carrier and to develop good managerial skills it is necessary that the theoretical aspects learnt in the class rooms must be supplemented with exposure to the real work environment. Theoretical knowledge just provides the base and is not sufficient to produce a good manager thats why practical knowledge is needed so as to enhance the working capabilities by working in a real work environment In accordance with the requirement of BBA course we have done our project on the topic Success strategies of HDFC Bank in Jammu & Kashmir We sincerely feel that the credit of this project work could not be narrowed to only one individual as the whole work is outcome of integrated efforts of all those concerned with it through whose cooperation and effective guidance we could achieve its completion. We express our sincere thanks to Mr.Aamir Latief, Assistant Manager HDFC Bank (Srinagar) for extending his cooperation and guidance. We also wish to express our deep sense of gratitude to Professor Aijaz for his valuable suggestions, guidance and constant encouragement in making this project a success.

MEANING AND DEFINITION: Bank is an institution that deals in money and its substitutes and provides crucial financial services. The principal type of baking in the modern industrial world is commercial banking & central banking. Banking Means "Accepting Deposits for the purpose of lending or Investment of deposits of money from the public, repayable on demand or otherwise and withdraw by cheque, draft or otherwise." -Banking Companies (Regulation) Act, 1949. The concise oxford dictionary has defined a bank as "Establishment for custody of money which it pays out on customers order." In fact this is the function which the bank performed when banking originated. "Banking in the most general sense, is meant the business of receiving, conserving & utilizing the funds of community or of any special section of it." -By H.Wills & J. Bogan "A banker of bank is a person, a firm, or a company having a place of business where credits are opened by deposits or collection of money or currency or where money is advanced and waned. -By Findlay Sheras Thus, A Bank: Accept deposits of money from public, Pays interest on money deposited with it. Lends or invests money Repays the amount on demand, Allow the money deposited to be withdrawn by cheque or draft.

ORIGIN OF WORD BANK: The origin of the word bank is shrouded in mystery. According to one view point the Italian business house carrying on crude from of banking were called banchi bancheri" According to another viewpoint banking is derived from German word "Branck" which mean heap or mound. In England, the issue of paper money by the government was referred to as a raising a bank. ORIGIN OF BANKING: Its origin in the simplest form can be traced to the origin of authentic history. After recognizing the benefit of money as a medium of exchange, the importance of banking was developed as it provides the safer place to store the money. This safe place ultimately evolved in to financial institutions that accepts deposits and make loans i.e., modern commercial banks. FUNCTIONS OF BANKS: 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. INSUDTRY PROFILE ~ BANKING SENARIO IN INDIA: Banking in India in the modern sense originated in the last decades of the 18th century. The first banks were Bank of Hindustan (1770-1829) and The General Bank of India, established 1786 and since defunct. The largest bank, and the oldest still in existence, is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India in 1955. For many years the presidency banks acted as quasi-central banks, as did their successors, until the Reserve Bank of India was established in 1935. In 1969 the Indian government nationalised all the major banks that it did not already own and these have remained under government ownership. They are run under a structure known as 'profit-making public sector undertaking' (PSU) and are allowed to compete and operate as commercial banks. The Indian banking sector is made up of four types of banks, as well as the PSUs and the state banks, they have been joined since 1990s by new private commercial banks and a number of foreign banks. Banking in India was generally fairly mature in terms of supply, product range and reacheven though reach in rural India and to the poor still remains a challenge. The government has developed initiatives to address this through the State bank of India expanding its branch network and through the National Bank for Agriculture and Rural Development with things like microfinance. History In ancient India there is evidence of loans from the Vedic period (beginning 1750 BC). Later during the Maurya dynasty (321 to 185 BC), an instrument called adesha was in use, which was an order on a banker desiring him to pay the money of the note to a third person, which

corresponds to the definition of a bill of exchange as we understand it today. During the Buddhist period, there was considerable use of these instruments. Merchants in large towns gave letters of credit to one another. Colonial era During the period of British rule merchants established the Union Bank of Calcutta in 1829, first as a private joint stock association, then partnership. Its proprietors were the owners of the earlier Commercial Bank and the Calcutta Bank, who by mutual consent created Union Bank to replace these two banks. In 1840 it established an agency at Singapore, and closed the one at Mirzapore that it had opened in the previous year. Also in 1840 the Bank revealed that it had been the subject of a fraud by the bank's accountant. Union Bank was incorporated in 1845 but failed in 1848, having been insolvent for some time and having used new money from depositors to pay its dividends. The Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint Stock bank in India, it was not the first though. That honour belongs to the Bank of Upper India, which was established in 1863, and which survived until 1913, when it failed, with some of its assets and liabilities being transferred to the Alliance Bank of Simla. Foreign banks too started to appear, particularly in Calcutta, in the 1860s. The Comptoir d'Escompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in 1862; branches in Madras and Pondicherry, then a French possession, followed. HSBC established itself in Bengal in 1869. Calcutta was the most active trading port in India, mainly due to the trade of the British Empire, and so became a banking centre. The first entirely Indian joint stock bank was the Oudh Commercial Bank, established in 1881 in Faizabad. It failed in 1958. The next was the Punjab National Bank, established in Lahore in 1895, which has survived to the present and is now one of the largest banks in India. Around the turn of the 20th Century, the Indian economy was passing through a relative period of stability. Around five decades had elapsed since the Indian Mutiny, and the social, industrial and other infrastructure had improved. Indians had established small banks, most of which served particular ethnic and religious communities.

The presidency banks dominated banking in India but there were also some exchange banks and a number of Indian joint stock banks. All these banks operated in different segments of the economy. The exchange banks, mostly owned by Europeans, concentrated on financing foreign trade. Indian joint stock banks were generally undercapitalised and lacked the experience and maturity to compete with the presidency and exchange banks. This segmentation let Lord Curzon to observe, "In respect of banking it seems we are behind the times. We are like some old fashioned sailing ship, divided by solid wooden bulkheads into separate and cumbersome compartments." The period between 1906 and 1911, saw the establishment of banks inspired by the Swadeshi movement. The Swadeshi movement inspired local businessmen and political figures to found banks of and for the Indian community. A number of banks established then have survived to the present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India. The fervour of Swadeshi movement lead to establishing of many private banks in Dakshina Kannada and Udupi district which were unified earlier and known by the name South Canara ( South Kanara ) district. Four nationalised banks started in this district and also a leading private sector bank. Hence undivided Dakshina Kannada district is known as "Cradle of Indian Banking". During the First World War (19141918) through the end of the Second World War (1939 1945), and two years thereafter until the independence of India were challenging for Indian banking. The years of the First World War were turbulent, and it took its toll with banks simply collapsing despite the Indian economy gaining indirect boost due to war-related economic activities. At least 94 banks in India failed between 1913 and 1918 as indicated in the following table: Number of banks that failed 12 42 Authorised capital (Rs. Lakhs) 274 710 Paid-up Capital (Rs. Lakhs) 35 109

Years

1913 1914

1915 1916 1917 1918 Post-Independence

11 13 9 7

56 231 76 209

5 4 25 1

The partition of India in 1947 adversely impacted the economies of Punjab and West Bengal, paralysing banking activities for months. India's independence marked the end of a regime of the Laissez-faire for the Indian banking. The Government of India initiated measures to play an active role in the economic life of the nation, and the Industrial Policy Resolution adopted by the government in 1948 envisaged a mixed economy. This resulted into greater involvement of the state in different segments of the economy including banking and finance. The major steps to regulate banking included: The Reserve Bank of India, India's central banking authority, was established in April 1935, but was nationalised on 1 January 1949 under the terms of the Reserve Bank of India (Transfer to Public Ownership) Act, 1948 (RBI, 2005b).[5] In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in India". The Banking Regulation Act also provided that no new bank or branch of an existing bank could be opened without a license from the RBI, and no two banks could have common directors. Nationalisation in the 1960s Despite the provisions, control and regulations of Reserve Bank of India, banks in India except the State Bank of India or SBI, continued to be owned and operated by private persons. By the 1960s, the Indian banking industry had become an important tool to facilitate the development of the Indian economy. At the same time, it had emerged as a large employer, and a debate had ensued about the nationalisation of the banking industry. Indira Gandhi, the then Prime Minister of India, expressed the intention of the Government of India

in the annual conference of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalisation." The meeting received the paper with enthusiasm. Thereafter, her move was swift and sudden. The Government of India issued an ordinance ('Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969')) and nationalised the 14 largest commercial banks with effect from the midnight of 19 July 1969. These banks contained 85 percent of bank deposits in the country. Jayaprakash Narayan, a national leader of India, described the step as a "masterstroke of political sagacity." Within two weeks of the issue of the ordinance, the Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it received the presidential approval on 9 August 1969. A second dose of nationalisation of 6 more commercial banks followed in 1980. The stated reason for the nationalisation was to give the government more control of credit delivery. With the second dose of nationalisation, the Government of India controlled around 91% of the banking business of India. Later on, in the year 1993, the government merged New Bank of India with Punjab National Bank. It was the only merger between nationalised banks and resulted in the reduction of the number of nationalised banks from 20 to 19. After this, until the 1990s, the nationalised banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy. Liberalisation in the 1990s In the early 1990s, the then swaroop srivathsan government embarked on a policy of liberalisation, licensing a small number of private banks. These came to be known as New Generation tech-savvy banks, and included Global Trust Bank (the first of such new generation banks to be set up), which later amalgamated with Oriental Bank of Commerce, UTI Bank (since renamed Axis Bank), ICICI Bank and HDFC Bank. This move, along with the rapid growth in the economy of India, revitalised the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks. The next stage for the Indian banking has been set up with the proposed relaxation in the norms for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 10%, at present it has gone up to 74% with some restrictions.

The new policy shook the Banking sector in India completely. Bankers, till this time, were used to the 464 method (Borrow at 4%; Lend at 6%; Go home at 4) of functioning. The new wave ushered in a modern outlook and tech-savvy methods of working for traditional banks. All this led to the retail boom in India. People not just demanded more from their banks but also received more.

Current period By 2012, banking in India was generally fairly mature in terms of supply, product range and reach-even though reach in rural India still remains a challenge for the private sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks in comparable economies in its region. The Reserve Bank of India is an

autonomous body, with minimal pressure from the government. The stated policy of the Bank on the Indian Rupee is to manage volatility but without any fixed exchange rate-and this has mostly been true. With the growth in the Indian economy expected to be strong for quite some time-especially in its services sector-the demand for banking services, especially retail banking, mortgages and investment services are expected to be strong. One may also expect M&As, takeovers, and asset sales. In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has

been allowed to hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any stake exceeding 5% in the private sector banks would need to be vetted by them. In recent years critics have charged that the non-government owned banks are too aggressive in their loan recovery efforts in connexion with housing, vehicle and personal loans. There are press reports that the banks' loan recovery efforts have driven defaulting borrowers to suicide

Adoption of banking technology The IT revolution had a great impact in the Indian banking system. The use of computers had led to introduction of online banking in India. The use of the modern innovation and computerisation of the banking sector of India has increased many fold after the economic liberalisation of 1991 as the country's banking sector has been exposed to the world's market. The Indian banks were finding it difficult to compete with the international banks in terms of the customer service without the use of the information technology and computers. The RBI set up a number of committees to define and co-ordinate banking technology. These have included: Legislation on Electronic Funds Transfer and other Electronic Payments (1995) again in 1984 formed the Committee on Mechanisation in the Banking Industry (1984) whose chairman was Dr C Rangarajan, Deputy Governor, Reserve Bank of India. The major recommendations of this committee was introducing MICR technology in all the banks in the metropolis in India. This provided use of standardized cheque forms and encoders. In 1988, the RBI set up the Committee on Computerisation in Banks (1988) headed by Dr. C.R. Rangarajan which emphasized that settlement operation must be computerized in the clearing houses of RBI in Bhubaneshwar, Guwahati, Jaipur, Patna and Thiruvananthapuram. It further stated that there should be National Clearing of inter-city cheques at Kolkata, Mumbai, Delhi, Chennai and MICR should be made Operational. It also focused on computerisation of branches and increasing

connectivity among branches through computers. It also suggested modalities for

implementing on-line banking. The committee submitted its reports in 1989 and computerisation began from 1993 with the settlement between IBA and bank employees' association. In 1994, Committee on Technology Issues relating to Payment systems, Cheque Clearing and Securities Settlement in the Banking Industry (1994)[14] was set up under chairman Shri WS Saraf. It emphasized Electronic Funds Transfer (EFT) system, with the BANKNET communications network as its carrier. It also said that MICR clearing should be set up in all branches of all banks with more than 100 branches. In 1995, Committee for proposing emphasized EFT system.

Number of ATMs of different Scheduled Commercial Banks of India as on end March 2012

Bank type

Number branches

of On-site ATMs

Off-site ATMs

Total ATMs

Nationalised banks

33627

3205

1567

4772

States bank of 13661 India Old private 4511

1548

3672

5220

800

441

1241

sector banks New private 1685 1883 3729 5612

sector banks Foreign banks 242 218 582 800

Branches and ATMs of Scheduled Commercial Banks as on end March 2012

ORGANIZATIONAL STRUCTURE OF BANKS IN INDIA:

In India banks are classified in various categories according to differ rent criteria. The following charts indicate the banking structure:

Reserve Bank of India

Commercial Banks

Co-operative Banks

Development Banks

Nationalized

Private

Short-term credit

Long-term credit

Agricultural Credit

Urban Credit

EXIM

Industrial

Agricultural

BROAD CLASSIFICATION OF BANKS IN INDIA: In India the banks are being segregated in different groups. Each group has their own benefits and limitations in operating in India. Each has their own dedicated target market. Few of them only work in rural sector while others in both rural as well as urban. Many even are only catering in cities. Some are of Indian origin and some are foreign players. Reserve Bank of India (RBI) Bankers Bank The Reserve Bank of India (RBI) is the central bank of India, and was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. Since its inception, it has been headquartered in Mumbai. Though originally privately owned, RBI has been fully owned by the Government of India since nationalization in 1949. RBI is governed by a central board (headed by a Governor) appointed by the Central Government. The current governor of RBI is Dr.Y.Venugopal Reddy (who succeeded Dr. Bimal Jalan on September 6, 2003). RBI has 22 regional offices across India. The Reserve

Bank of India was set up on the recommendations of the Hilton Young Commission. The commission submitted its report in the year 1926, though the bank was not set up for nine years. MAIN OBJECTIVE: Monetary Authority Formulates implements and monitors the monetary policy. Objective: maintaining price stability and ensuring adequate flow of credit to productive sectors. Regulator and supervisor of the financial system Prescribes broad parameters of banking operations within which the countrys banking and financial system functions. Objective: maintain public confidence in the system, protect depositors interest and provide cost-effective banking services to the public. The Banking Ombudsman Scheme has been formulated by the Reserve Bank of India (RBI) for effective redressal of complaints by bank customers Manager of Exchange Control Manages the Foreign Exchange Management Act, 1999. Objective: to facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India. Issuer of currency Issues and exchanges or destroys currency and coins not fit for circulation. Objective: to give the public adequate quantity of supplies of currency notes and coins and in good quality. Developmental role Performs a wide range of promotional functions to support national objectives.

Related Functions Banker to the Government: performs merchant banking function for the central and the state governments; also acts as their banker. Banker to banks: maintains banking accounts of all scheduled banks. Owner and operator of the depository (SGL) and exchange (NDS) for government bonds.

PUBLIC SECTOR BANKS IN INDIA: United Bank of India is one of the 14 major banks which were nationalised on July 19, 1969. Its predecessor, in the Public Sector Banks, the United Bank of India Ltd., was formed in 1950 with the amalgamation of four banks viz. Comilla Banking Corporation Ltd. (1914), Bengal Central Bank Ltd. (1918), Comilla Union Bank Ltd. (1922) and Hooghly Bank Ltd. (1932). Oriental Bank of Commerce (OBC), a Government of India Undertaking offers Domestic, NRI and Commercial banking services. OBC is implementing a GRAMEEN PROJECT in Dehradun District (UP) and Hanumangarh District (Rajasthan) disbursing small loans. This Public Sector Bank India has implemented 14 point action plan for strengthening of credit delivery to women and has designated 5 branches as specialized branches for women entrepreneurs. Private Banking in India It was practiced since the beginning of banking system in India. The first private bank in India to be set up in Private Sector Banks in India was IndusInd Bank. It is one of the fastest growing private sector Banks in India. IDBI ranks the tenth largest development bank in the world as Private Banks in India and has promoted world class institutions in India. The first Private Bank in India to receive an in principle approval from the Reserve Bank of India was Housing Development Finance Corporation Limited, to set up a bank in the private sector banks in India as part of the RBI's liberalisation of the Indian Banking Industry. It was incorporated in August 1994 as HDFC Bank Limited with registered office in Mumbai and

commenced

operations

as

Scheduled

Commercial

Bank

in

January

1995.

ING Vysya, yet another Private Bank of India was incorporated in the year 1930. Bangalore has a pride of place for having the first branch inception in the year 1934. With successive years of patronage, the private banks are constantly setting new standards in banking. The Co-operative Banks In India It started functioning almost 100 years ago. The Cooperative bank is an important constituent of the Indian Financial System, judging by the role assigned to co-operative, the expectations the co-operative is supposed to fulfill, their number, and the number of offices the cooperative bank operate. Though the co-operative movement originated in the West, but the importance of such banks have assumed in India is rarely paralleled anywhere else in the world. The cooperative banks in India play an important role even today in rural financing. The businesses of cooperative bank in the urban areas also have increased phenomenally in recent years due to the sharp increase in the number of primary co-operative banks. Co-operative Banks in India are registered under the Co-operative Societies Act. The cooperative bank is also regulated by the RBI. They are governed by the Banking Regulations Act 1949 and Banking Laws (Co-operative Societies) Act, 1965. RURAL BANKING IN INDIA: It started since the establishment of banking sector in India. Rural Banks in those days mainly focussed upon the agro sector. Regional rural banks in India penetrated every corner of the country and extended a helping hand in the growth process of the country. SBI has 30 Regional Rural Banks in India known as RRBs. The rural banks of SBI are spread in 13 states extending from Kashmir to Karnataka and Himachal Pradesh to North East. The total number of SBIs Regional Rural Banks in India branches is 2349 (16%). Till date in rural banking in India, there are 14,475 rural banks in the country of which 2126 (91%) are located in remote rural areas. Apart from SBI, there are other few banks which functions for the development of the rural areas in India. Few of them are as follows. Haryana State Cooperative Apex Bank Limited

The Haryana State Cooperative Apex Bank Ltd. commonly called as HARCOBANK plays a vital role in rural banking in the economy of Haryana State and has been providing aids and financing farmers, rural artisans, agricultural labourers, entrepreneurs, etc. in the state and giving service to its depositors.

Nabard National Bank for Agriculture and Rural Development (NABARD) is a development bank in the sector of Regional Rural Banks in India. It provides and regulates credit and gives service for the promotion and development of rural sectors mainly agriculture, small scale industries, cottage and village industries, handicrafts. It also finances rural crafts and other allied rural economic activities to promote integrated rural development. It helps in securing rural prosperity and its connected matters. Sindhanur Urban Souharda Co-operative Bank Sindhanur Urban Souharda Co-operative Bank, popularly known as SUCO BANK is the first of its kind in rural banks of India. The impressive story of its inception is interesting and inspiring for all the youth of this country. United Bank of India United Bank of India (UBI) also plays an important role in regional rural banks. It has expanded its branch network in a big way to actively participate in the developmental of the rural and semi-urban areas in conformity with the objectives of nationalisation. Syndicate Bank Syndicate Bank was firmly rooted in rural India as rural banking and have a clear vision of future India by understanding the grass root realities. Its progress has been abreast of the phase of progressive banking in India especially in rural banks

FOREIGN BANKS IN INDIA: These always brought an explanation about the prompt services to customers. After the set up foreign banks in India, the banking sector in India also become competitive.

New rules announced by the Reserve Bank of India for the foreign banks in India in this budget have put up great hopes among foreign banks which allow them to grow unfettered. Now foreign banks in India are permitted to set up local subsidiaries. The policy conveys that foreign banks in India may not acquire Indian ones (except for weak banks identified by the RBI, on its terms) and their Indian subsidiaries will not be able to open branches freely. Please see the list of foreign banks in India till date. List of Foreign Banks in India Abu Dhabi Commercial Bank ANZ Grindlays Bank Bank of America Bank of Ceylon BNP Citi Bank Royal Bank of scotland China Trust Commercial Bank HSBC Standard Chartered Bank Taib Bank Bank of Nova Scotia ABN-AMRO Bank Deutsche Bank JPMorgan Chase Bank

Type

Public

Traded as

BSE: 500180 NSE: HDFCBANK NYSE: HDB BSE SENSEX Constituent

Industry

Banking, Financial services

Founded

August 1994

Headquarters

Mumbai, Maharashtra, India

Area served

Worldwide

Key people

Mr Aditya Puri (MD)

Products

Credit cards, consumer banking, corporate banking,finance and insurance,investment banking, mortgage loans, private banking, private equity, wealth management[1]

Revenue

US$ 6.487 billion (2012)

Operating income

US$ 1.451 billion (2012)

Profit

US$ 978.3 million (2012)

Total assets

US$ 70.17 billion (2012)

Total equity

US$ 7.793 billion (2012)

Employees

66,076 (2012)

Website

HDFCBank.com

COMPANY PROFILE ~ HDFC BANK:

HDFC FOUNDER: Man with a Mission If ever there was a man with a mission it was Hasmukhbhai Parekh, our Founder and Chairman-Emeritus, who left this earthly abode on November 18, 1994. Born in a traditional banking family in Surat, Gujarat, Mr Parekh started his financial career at Harkisandass Lukhmidass - a leading stock broking firm. The firm closed down in the late seventies, but, long before that, he went on to become a towering figure on the Indian financial scene. In 1956 he began his lifelong financial affair with the economic world, as General Manager of the newly-formed Industrial Credit and Investment Corporation of India (ICICI). He rose to become Chairman and continued so till his retirement in 1972. At the ripe age of 60, Hasmukhbhai started his second dynamic life, even more illustrious than his first. His vision for mortgage finance for housing gave birth to the Housing Development Finance Corporation - it was a trend-setter for housing finance in the whole Asian continent. He was a true development banker. His building up HDFC without any government assistance is itself a brilliant chapter in financial history. His wisdom and warmth drew people from all walks of life to him, for advice, guidance and inspiration. A soft spoken man of few words, Mr Parekh nevertheless held strong and definite views with a quiet conviction. He was always concerned with building bridges, improving and encouraging communication between people. But there was much more to the man than his financial genius. In his own unassuming way, Hasmukhbhai devoted all his life to raising resources for philanthropic causes. He was one of the Founder Members of the Centre for Advancement of Philanthropy, and its Chairman till 1993. He took active interest in the Bombay Community Public Trust, designed specifically to serve the needs of the city's underprivileged citizens. When Mr Deepak Parekh took over as Chairman from Hasmukhbhai, he said: "Taking over from H.T. Parekh is a formidable task; his vision brought about not only an institution, but an

entire concept which has proved itself to be of lasting importance." In his last years, developments in the financial sector brought him some measure of satisfaction. Says ICICI Chairman, N. Vaghul: "The most gratifying aspect about his life is that values he cherished all his life came into reality in the last years. Opening up the financial sector, and deregulation of lending rates were issues he stood for all his life and this happened before he passed away."

COMPANY PROFILE: HDFC Bank Limited is a major Indian financial services company based in Mumbai. The Bank is a publicly held banking company engaged in providing a wide range of banking and financial services including commercial banking and treasury operations. The Bank at present has an enviable network of 2201 branches and 7110 ATMs spread in 996 cities across India. They also have one overseas wholesale banking branch in Bahrain, a branch in Hong Kong and two representative offices in UAE and Kenya. The Bank has two subsidiary companies, namely HDFC Securities Ltd and HDB Financial Services Ltd. The Bank has three primary business segments, namely banking, wholesale banking and treasury. The retail banking segment serves retail customers through a branch network and other delivery channels. This segment raises deposits from customers and makes loans and provides other services with the help of specialist product groups to such customers. The wholesale banking segment provides loans, non-fund facilities and transaction services to corporate, public sector units, government bodies, financial institutions and medium-scale enterprises. The treasury segment includes net interest earnings on investments portfolio of the Bank. The 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. The Bank's shares are listed on the Bombay Stock Exchange Limited and The National Stock Exchange of India Ltd. The Bank's American Depository Shares (ADS) are listed on the New York Stock Exchange (NYSE) and the Bank's Global Depository Receipts (GDRs) are listed on Luxembourg Stock Exchange. HDFC Bank Ltd Was incorporated on August 30, 1994 by Housing Development Finance Corporation Ltd. In the year 1994, Housing Development Finance Corporation Ltd was amongst the first to receive an 'in principle' approval from the Reserve Bank of India to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. In the year 1996, the Bank was appointed as the clearing bank by the NSCCL. In the

year 1997, the launched retail investment advisory services. In the year 1998, they launched their first retail lending product, Loans against Shares. In the year 1999, the Bank launched online, real-time Net Banking. In February 2000, Times Bank Ltd, owned by Bennett, Coleman & Co. / Times Group amalgamated with the Bank Ltd. This was the first merger of two private banks in India. The Bank was the first Bank to launch an International Debit Card in association with VISA (Visa Electron). In the year 2001, they started their Credit Card business. Also, they became the first private sector bank to be authorized by the Central Board of Direct Taxes (CBDT) as well as the RBI to accept direct taxes. During the year, the Bank made a strategic tie-up with a Bangalore-based business solutions software developer, Tally Solutions Pvt Ltd for developing and offering products and services facilitating on-line accounting and banking services to SMEs. During the year 2001-02 the bank was listed on the New York Stock Exchange. Also, they made the alliance with LIC for providing online payment of insurance premium to the customers. During the year 2002-03, the Bank increased the number of branches from 171 Nos to 231 Nos and the size of the Bank's ATM network expanded from 479 Nos to 732 Nos. They also expanded their presence in the 'merchant acquiring' business. During the year 2003-04, the Bank expanded the distribution network with the number of branches increased from 231 Nos to 312 Nos and the size of the Bank's ATM network increased from 732 Nos to 910 Nos. In September 2003, they entered the housing loan business through an arrangement with HDFC Ltd, whereby they sell HDFC Home Loan product. During the year 2004-05, the Bank expanded the distribution network with the number of branches increased from 312 Nos to 467 Nos and the size of the Bank's ATM network increased from 910 Nos to 1147 Nos. During the year 2005-06, the Bank launched the 'no-frills account', a basic savings account offering to the customer. Also, the distribution network was expanded with the number of branches increased from 467 Nos (in 211 cities) to 535 Nos (in 228 cities) and the number of ATMs from 1147 Nos to 1323 Nos. During the year 2006-07, the distribution network was expanded with the number of branches increased from 535 Nos (in 228 cities) to 684 Nos (in 316 cities) and the number of ATMs from 1323 Nos to 1605 Nos. They commenced direct lending to Self Help Groups. Also, they opened a dedicated branch for lending to SHGs, in Thudiyalur village (Tamil Nadu). In September 28, 2005, the Bank increased their stake in HDFC Securities Ltd from 29.5% to 55%. Consequently, HDFC Securities Ltd became a subsidiary of the Bank. During the year 2007-08, the Bank added 77 Nos new branches take the total to 761 Nos branches. Also, 372 Nos new ATMs were also added taking the size of the ATM network from 1605 Nos to 1977 Nos. HDB Financial Services Ltd became a subsidiary company with effect from August 31,

2007. In June 2, 2007, the Bank opened 19 branches in a day in Delhi and the National Capital Region (NCR). During the year 2008-09, the Bank expanded their distribution network from 761 branches in 327 cities to 1,412 branches in 528 Indian cities. The Bank's ATMs increased from 1,977 to 3,295 during the year. As per the scheme of amalgamation, Centurion Bank of Punjab Ltd was amalgamated with the Bank with effect from May 23, 2008. The appointed date for the merger was April 01, 2008. In October 2008, the bank opened their first overseas commercial branch in Bahrain. The branch offers the bank's suite of banking services including treasury and trade finance products for corporate clients and wealth management products for Non-resident Indians. During the year 2009-10, the Bank expanded their distribution network from 1,412 branches in 528 cities to 1,725 branches in 779 cities. The Bank's ATMs increased from 3,295 Nos to 4,232 Nos during the year. During the year 2010-11, the Bank expanded their distribution network from 1,725 branches in 779 cities to 1,986 branches in 996 Indian cities. The Bank's ATMs increased from 4,232 to 5,471 Nos.

Mission and Business Strategy The Banks mission is to be a World Class Indian Bank, benchmarking itself against international standards and best practices in terms of product offerings, technology, service levels, risk management and audit & compliance. The objective is to continue building sound customer franchises across distinct businesses so as to be a preferred provider of banking services for its target retail and wholesale customer segments, and to achieve a healthy growth in profitability, consistent with the Banks risk appetite. The Bank is committed to do this while ensuring the highest levels of ethical standards, professional integrity, corporate governance and regulatory compliance. The Banks business strategy emphasizes the following: Develop innovative products and services that attract its targeted customers and address inefficiencies in the Indian financial sector; Increase its market share in Indias expanding banking and financial services industry by following a disciplined growth strategy focusing on balancing quality and volume growth while delivering high quality customer service; Leverage its technology platform and open scalable systems to deliver more products to more customers and to control operating costs;

Maintain high risk standards for asset quality through disciplined credit risk management; Continue to develop products and services that reduce its cost of funds; and Focus on healthy earnings growth and low volatility

Financial Performance The financial performance of your Bank during the financial year ended March 31, 2012 remained healthy with total net revenues (net interest income plus other income) increasing by 17.9% to ` 17,540.5 crore from ` 14,878.3 crore in the previous financial year. Revenue growth was driven by an increase in both, net interest income and other income. Net interest income grew by 16.6% due to acceleration in loan growth to 22.2% coupled with a net interest margin (NIM) of 4.2 % for the year ending March 31, 2012. From May 2011, the RBI mandated that interest payable on savings deposits be increased to 4% from 3.5%, which resulted in an impact of approximately 10-11 basis points on the banks Net Interest Margins (NIM). Further, in November 2011, the same was de -regulated by RBI. Some of the small private sector banks increased the savings bank interest rate in the range of 6-7 %, while most other banks maintained their savings deposit rate at 4%. In spite of price based competition, your Bank witnessed a strong growth of 16.6% in its savings deposits. Further, due to tight liquidity conditions that were prevalent in the monetary system during the financial year ended March 31, 2012, your Bank witnessed an increase of about 100 basis points in its retail term deposit rates during this period. Your Bank has however maintained steady NIMs by managing the yields across its various customer and product segments in line with its cost of funds. Other income grew 21.0% over that in the previous year to ` 5,243.7 crore during the financial year ended March 31, 2012. This growth was driven primarily by an increase in fees and commissions earned and income from foreign exchange and derivatives, offset in part by a loss on sale / revaluation of investments of ` 195.9 crore as compared to a loss of ` 52.6 crore in the previous financial year. In the financial year ended March 31, 2012, commission income increased by 18.9% to ` 4,275.5 crore with the primary drivers being commissions from the distribution of fees on debit and credit cards, transactional charges and fees on

deposit accounts and processing fees on retail assets. Regulatory changes resulted in the capping of earnings from the distribution of insurance products; however the increase in your Banks sales volumes partly made up for the reduction in unit commissions. Foreign exchange and derivatives revenues grew by 44.8% from ` 786.3 crore in the previous financial year to ` 1,138.9 crore in the financial year ended March 31, 2012, primarily due to higher customer flows and also higher earnings from trading arising out of large volatility in foreign exchange markets through the year. Operating (non-interest) expenses increased from ` 7,152.9 crore in the previous financial year to ` 8,590.1 crore in the year under consideration. During the year your Bank opened 558 new branches and over 3,400 ATMs which resulted in higher infrastructure and staffing expenses. As a result, the ratio of operating cost to core net revenues (excluding bonds gains / losses) for your Bank increased to 48.4% during the financial year ended March 31, 2012, from 47.9% in the previous year. Total loan loss provisions consisting of specific provisions for non-performing assets and floating provisions decreased from ` 1,433.0 crore to ` 1,351.6 crore for the financial year ended March 31, 2012, on account of healthy asset quality across both retail and wholesale customer segments. Your Banks provisioning policies for specific loan loss provisions remain higher than regulatory requirements, the coverage ratio based on specific provisions alone without including write-offs was 82.4% and that including general and floating provisions was 199.7 % as on March 31, 2012. Your Bank made general provisions of ` 150.5 crore during the financial year ended March 31, 2012. Your Banks profit after tax increased by 31.6% from ` 3,926.4 crore in the previous financial year to ` 5,167.1 crore in the year ended March 31, 2012. Return on average net worth was 18.4% while the basic earnings per share increased from ` 17.00 to ` 22.11 per equity share. As at March 31, 2012, your Banks total balance sheet size was ` 337,909 crore an increase of 21.8% over ` 277,353 crore as at March 31, 2011. Total Deposits increased 18.3% from ` 208,586 crore as on March 31, 2011 to ` 246,706 crore as on March 31, 2012. Savings account deposits grew by 16.6% to ` 73,998 crore while current account deposits were at ` 45,408 crore as on March 31, 2012. Adjusting current account deposits for one offs, as at March 31, 2011, amounting to ` 4,000 crore, the growth was 6.9%. The proportion of core current and savings deposits (CASA) to total deposits was at 48.4% as on March 31, 2012. During the financial year under review, gross advances grew by 22.0% to ` 196,890 crore, while system loan growth was approximately 19%. Your Banks loan growth was driven by an increase of 33.7% in retail advances to ` 107,126 crore, and an increase of 10.5% in

wholesale advances to ` 89,764 crore. The Bank had a market share of 3.9% in total system deposits and 4.3% in total system advances. The Banks Credit Deposit (CD) Ratio was 79.2% as on March 31, 2012.

GRAPHICAL REPRESENTATION OF THE FINANCIAL PERFORMANCE

Company

Market P/E P/BV EV/EBIDTA ROE Cap (TTM) (TTM) (x) (%) (Rs. in Cr.) (x) (x)

ROCE (%)

D/E (x)

HDFC Bank ICICI Bank Axis Bank Kotak Mah. Bank IndusInd Bank Yes Bank ING Vysya Bank Stand.Chart.PLC Federal Bank J & K Bank Karur Vysya Bank City Union Bank South Ind.Bank Karnataka Bank Dev.Credit Bank Peer Comparison

151,814.70 120,410.45 59,034.38 56,029.16

23.34 15.04 11.72 41.42

4.19 1.81 1.78 5.21

15.19 13.58 13.26 16.76

20.3 13.1 18.5 15.6

0.0 0.0 0.0 0.0

0.00 0.00 0.00 0.00

24,276.18 16,298.91 9,620.09 8,011.61 7,140.90 5,713.85 4,590.30

23.55 12.87 16.06 4.69 8.52 5.64 8.34

3.27 2.81 2.13 0.61 1.12 1.17 1.49

12.17 12.32 12.55 0.00 11.78 12.17 11.82

17.8 24.8 14.6 13.9 14.4 23.6 19.0

0.0 0.0 0.0 0.0 0.0 0.0 0.0

0.00 0.00 0.00 0.00 0.00 0.00 0.00

2,843.82 2,740.91 2,201.93 1,193.17

8.84 5.63 6.54 11.49

1.73 0.96 0.77 1.26

11.35 11.56 11.39 13.48

24.9 20.5 12.8 8.8

0.0 0.0 0.0 0.0

0.00 0.00 0.00 0.00

CORPORATE SOCIAL RESPONSIBILITY: The Bank has a defined guiding principle for all its social initiatives: Changing Lives by empowering individuals through Finance, Education and Training. An essential element of the Banks Corporate Responsibility is its community initiatives which aim at empowering individuals at the bottom of the pyramid through developmental initiatives such as education and livelihood support. In the field of education its interventions are aimed at mainstreaming of school children and ensuring the quality of education they receive. The Bank has undertaken a multitude of initiatives for retaining children in school and arrest the rate of dropouts. As part of this initiatives, pre-primary schools are run in

communities with the objective of preparing and enrolling these children into mainstream education. Apart from providing basic nutritional and health needs, regular parent and community meetings are an integral part of this program which is currently running in Kolkata, Hyderabad and Delhi. The Bank in partnership with NGOs and the government has adopted state-run schools by providing educational support to the children and to train staff to ensure better levels of learning and lower rate of drop-out in state-run schools in Pune and Mumbai. Also needy and deserving children are identified based on set criteria and provided with educational support to cover the cost of their education in state-run schools. In a unique initiative supported by the Bank, 30 children from government schools have been integrated to DPS School in Ahmedabad. The Bank launched its Educational Crisis Scholarship Support (ECSS) in 2011 to reach out to students, studying in private / government-aided schools, who due to personal / family constraints, are unable to continue bearing the cost of education and are at risk of dropping out of school. The Bank also undertakes programs that cover around 500 children through afterschool class and out-of school children through bridge class in Pune, Delhi and Kolkata, a rehabilitation program in Kashmir, Kolkata and Mumbai, where development, training and placement assistance is provided to differently abled individuals, so that they can lead a life of dignity, and financial literacy programs for children which are run in 458 schools in rural areas of Maharashtra, Tamil Nadu and Orissa to inculcate values of money and concept of savings. The Bank has also created a financial literacy module which is run by its employee volunteers. Power of Banking is a two hour-long interactive module designed for school children studying in Vth to VIIIth standards and covers simple concepts about money such as budgeting, saving and banking. Power of banking has also been redesigned to introduce financial concepts and values associated with money to street children. The Banks livelihood initiatives are aimed at training and capacity development of youth and women in the age group of 18-30 years from economically weaker sections of society and to empower them to gain access to opportunities for sustainable livelihoods and growth. The Banks livelihood support programs are aimed at empowering competency based, skilloriented technical and vocational training. Such training programs have been carried out in Andhra Pradesh, Maharashtra and Gujarat. In Kolkata, your Bank has supported the setting up of a physiotherapy training unit where visually challenged candidates undergo a diploma

in physiotherapy. In a pilot project undertaken in the same city, interest-free loans were given to school drop-outs who underwent training as laboratory technicians and were successfully placed in hospitals through industry interface. In addition to projects implemented through NGO partners, your Bank also drives direct community initiatives through its employees.

COMPANY PRODUCT LINE: Banking should be effortless. With HDFC Bank, the efforts are rewarding. No matter what a customer's need and occupational status, we have a range of solutions that are second to none. Whether you're employed in a company and need a simple Savings account or run your own business and require a robust banking partner, HDFC Bank not only has the perfect solution for you, but also can recommend products that can augment your planning for the future. SAVINGS ACCOUNT 1) Regular savings a/c: An easy-to-operate savings account that allows you to issue cheques, draw Demand Drafts and withdraw cash. Check up on your balances from the comfort of your home or office through Net Banking, Phone Banking and Mobile Banking .

Features & benefits Wide network of branches and over thousand ATMs to meet all your banking needs no matter where you are located. Bank conveniently with facilities like Net Banking and Mobile Banking- check your account balance, pay utility bills or stop cheque payment, through SMS.

Never overspend- Shop using your International Debit Card that reflects the actual balance in your savings account.

Avail of facilities like Safe Deposit Locker, Sweep-In and Super Saver facility on your account.

2) Retail Trust a/c: The Retail Trust Account is beneficial for Trusts and Societies as it earns them a interest as compared to a conventional Current Account that offers no interest. higher

Features & benefits Avail of Free Outstation Cheque Collection at HDFC Bank locations across the country. Enjoy free DD's payable on HDFC bank locations up to a limit of Rs. 50,000/- per DD, per day. Payable at Par Cheque facility: At a nominal cost, you can avail a PAP cheque book of 25 leaves (Regular non-PAP cheque book come free of cost). Avail of Special discounts on Foreign exchange transactions and Forex rates at most branches across the country. Structured Investment Program: Avail of the facility for investing surplus funds lying in your account into Mutual Funds, RBI Bonds and other financial instruments through any of our branches across the country.

3) SALARY ACCOUNT 1) Payroll salary a/c: Features & benefits Nil Interest payout on account balance Free Payroll Debit Card - (max cash withdrawal at ATMs- Rs 15,000/- and Rs 25,000 at shopping avenues) BillPay facility at Rs 25/- (plus taxes) per qtr. per Customer ID. Up to 6 free ATM cash withdrawal transactions; thereafter Rs. 30/- per transaction. Cheque book issuance @ charge of Rs.5 per leaf (only on request and this is not a standard offering )

2) Classic salary a/c: Features & benefits Zero Balance Account Free personalized Cheque books. Free ATM Card with a withdrawal limit of up to Rs. 10,000/- per day.

Free facilities like Net Banking, Phone Banking and Mobile Banking. 3) Regular salary a/c: Features & benefits No minimum balance required. Free International Debit card with ATM cash withdrawal limit of up to Rs. 15,000 and Rs. 25,000 (non-cash) at shopping avenues. Free issuance of Demand Drafts up to Rs. 25,000 per instrument, payable at branches within the HDFC Banking network. Preferential rates on loan products offered by the bank. Preferential rates on forex transactions.

4) Premium salary a/c: Features & benefits Free International Debit Card and Add-on Debit card for life. Free Personal Insurance Accident cover up to Rs. 2, 00,000/- on the Debit card. Free Debit card withdrawals - max cash withdrawal at ATMs- Rs 25,000/- and Rs 50,000 (non-cash) at shopping avenues. Preferential rates for Gold and Silver credit cards. Free Demand Drafts up to Rs. 25,000 per instrument, per instrument payable at branches within the HDFC Banking network. Free BillPay and Insta Alert facility.

5) Defense salary a/c: Features & benefits The Defense Salary Account is a Zero Balance account. Enjoy facilities like NetBanking, Phone Banking, Mobile Banking, BillPay, ATM facility, and inter-branch banking.

Enjoy preferential rates on Loans against Shares, New Car Loans and Used Car Loans, Consumer Loans and Personal Loans. 4) KIDS ADVANTAGE ACCOUNT: Features & benefits

Automatically increases the balance in your Kids Advantage Account by transferring a fixed sum from your Savings Account every month. Amounts in excess of Rs. 5,000/- over and above a balance of Rs. 10,000/- gets converted into Fixed Deposits for a specified period in your child's name. Free International Debit Card for your child (above 7 years of age) with a maximum drawing capability of Rs. 2,500/- per day. Free Education Insurance cover of up to Rs. 1,00,000/- for your child with every Kids Advantage Account

5) PENSION SAVING ACCOUNT: Features & benefits The Pension saving account is a Zero Balance Account. Timely credit of receivables Free International Debit Card. Enjoy facilities such as NetBanking, Phone Banking, BillPay, and ATM facility, inter-city and inter-branch banking. Pension Accounts are transferable from one branch/bank to another.

6) FAMILY SAVINGS ACCOUNT: Features & benefits All account holders can operate their account freely without worrying about their minimum balance. Family members with NRI status can also be part of the group. Get 5 Free Cash withdrawal transactions on SBI ATMs per group per month. Upto 2 free DD's/ MC's on HDFC Bank locations per account per month (max. up to Rs. 25,000/- per instrument per day). Free International Debit Card for all account holders till the account is part of the Family group. (NRO Accounts will be issued only ATM cards) Free BillPay & InstaAlerts facility for all account holders till the account is part of the Family Group. Free Standing Instructions for investment into Mutual Funds Free OneView to access all your accounts.

Free MobileBanking, NetBanking & PhoneBanking. Enjoy a Savings account to Savings account sweep-in to a nominated account (sweepin to NRE accounts not permitted from resident / NRO accounts).

CURRENT ACCOUNT: 1) Plus Current a/c: In today's fast-paced world, your business regularly requires you to receive and send funds to various cities in the country. HDFC Bank Plus Current Account gives you the power of inter-city banking with a single account and access to more than 220 cities.

Features & benefits Free outstation cheque collection (non HDFC Bank location cheques will incur a nominal charge). Free limited NetBanking for checking balances in accounts. Full-fledged Net Banking can be availed of after completion of certain formalities. FREE Demand Drafts (without any limit) payable at Mumbai, Delhi, Kolkata, Chennai, Ahmedabad, Bangalore, Hyderabad, Trivandrum, Chandigarh, Bhopal, Nagpur, Jaipur, Bhubaneshwar, Kanpur, and Patna & Guwahati. At all other HDFC Bank Branch locations, Demand Drafts will be issued Free up to a total of Rs.50 lacs per month, incremental to be charged @ Rs.0.25 per Rs.1,000, minimum Rs.25/-, maximum These drafts are available free only from the Home Branch Free Funds TransferHuge savings! Rs.5,000.

You can transfer funds absolutely FREE across all locations, except Dahej, in the HDFC Bank network up to a total value of Rs.100 lakhs per month. any incremental amount above Rs.100 lakhs will be charged @ Rs. 0.50 /Rs.1000. Easy cash deposit and withdrawal. You can avail of the service FREE, at home branch, as per the branch's discretion. At non-home branches within the same city, you can withdraw cash up to Rs.50,000/-, but cash deposits are allowed to accountholder (self) only, up to Rs.100,000/- per day at a charge of Rs.2/- per Rs.1,000/-.

2) Trade Current a/c:

In today's changing business requirements, you need to transfer funds across cities, and time is of the essence. HDFC Bank Trade Current Account gives you the power of Inter-city banking with a single account.

From special cheques that get treated at par with local ones in any city where we have a branch, to free** collection of outstation cheques (payable at branch locations), to free intercity funds transfers of up to 25 lakhs, our priority services have become the benchmark for banking efficiency.

Features & benefits Convenient Inter-city banking across more than 185 cities Safe & convenient Intra-city banking FREE Funds Transfer. Huge Savings.

DE-MAT ACCOUNT: HDFC BANK is one of the leading Depository Participant (DP) in the country with over 8 Lac de-mat accounts. HDFC Bank De-mat services offers you a secure and convenient way to keep track of your securities and investments, over a period of time, without the hassle of handling physical documents that get mutilated or lost in transit. HDFC BANK is Depository participant both with -National Securities Depositories Limited (NSDL) and Central Depository Services Limited (CDSL).

LOANS Personal Loan Features & benefits Borrow up to Rs 10, 00,000 for any purpose depending on your requirements. Flexible Repayment options, ranging from 12 to 48 months.

Repay with easy EMI. One of the lowest interest rates. Hassle free loans - No guarantor/security/collateral required. Speedy loan approval. Convenience of service at your doorstep. Customer privileges

HOME LOAN
Features & benefits Home Loan - We offer home loans for individuals to purchase (fresh / resale) or construct houses. Home loans can be applied for individually or jointly. HDFC finances up to 85% maximum of the cost of the property (Agreement value + Stamp duty + Registration charges). Home Improvement Loan - HIL facilitates internal and external repairs and other structural improvements like painting, waterproofing, plumbing and electric works, tiling and flooring, grills and aluminium windows. HDFC finances up to 85% of the cost of renovation (100% for existing customers). Home Extension Loan - HEL facilitates the extension of an existing dwelling unit. All the terms are the same as applicable to Home Loan. Land Purchase Loan - Be it land for a dream house, or just an investment for the future, HDFC Land Purchase Loan is a convenient loan facility to purchase land. HDFC finances up to 70% of the cost of the land (Conditions Apply). Repayment of the loan can be done over a maximum period of 10 years. Choose from Fixed Rate or Floating Rate with options to structure your loan as Partly Fixed or Partly Floating. Flexible repayment options to suit your individual needs. Loan cover Term Assurance Plan - HDFC Standard Life Insurance Company Ltd. offers an insurance plan*, which is designed to ensure that life's uncertainties do not affect your family's interests and your precious home. LCTAP provides a lump-sum payment on the unfortunate demise of the life assured.

NEW CAR LOAN

Features & benefits Covers the widest range of cars and multi-utility vehicles in India. Avail 100% finance on your favourite car Flexible repayment options, ranging from 12 to 84 months. Borrow up to 3 times your annual salary (for salaried professionals) and 6 times your annual income (for self employed professionals). Speedy processing - within 48 hours Repay with easy EMIs. Attractive car loan plans - To Fastrack your loan, just choose the plan that is right for you. Attractive Interest rates

TWO WHEELER LOAN

100 CC?180 CC?Or maybe a 500 CC? Whichever the bike, our Two Wheeler loan is the answer. With quick approvals, flexible payment options and easy repayment.

Features & benefits

Flexible repayment options, ranging from 12 to 48 months available even at the point of purchase Repay through post-dated cheques with easy EMIs. Calculate your EMI Hassle free loans - No guarantor required. Speedy loan approval. Available for almost all models at attractive interest rates

OVERDRAFT AGAINST CAR

Need extra cash? Want a lower rate of interest than a personal loan? Have a car to yourname?

With HDFC Bank's Overdraft Against Car, one can get an overdraft against car and utilise the money for personal or business needs.

Features & benefits

Overdrafts available on cars hypothecated with the bank and up to 9 years old. Loans ranging from Rs. 50,000 to Rs. 7 lacs depending on your needs. Borrow up to 90% of the value of the car

LOAN AGAINST SECURITIES

With HDFC Bank's Loan against Securities, one can get an overdraft against securities like Equity Shares, Mutual Fund Units, GOI Relief Bonds, LIC Policies, NSC, KVP, UTI Bonds (6.60% ARS & US64 Bonds) and Gold Deposit Certificates, while still retaining ownership. And the best part is that one can continue to enjoy all shareholder benefits such as rights, dividends and bonuses. Features & benefits Overdraft facility can be availed against pledge of: Equity Shares* - Demat Shares up to 50% of the value. Mutual Fund units* - Mutual Funds up to 50% of NAV (Net Asset Value). See approved Mutual Fund Schemes. GOI Relief Bonds LIC Policies

LOAN AGAINST PROPERTY

HDFC Bank brings to you Loan Against Property (LAP). one can now take a loan against residential or commercial property, to expand his/her business, plan a dream wedding, fund child's education and much more. Loan to purchase Commercial Property (LCP) is a

specially designed product to help you expand your business without reducing the capital from your business. Features & benefits Loans from Rs. 2 Lacs onwards depending on your needs

Borrow up to 60% of market value of the property Flexibility to choose between an EMI based loan or an Overdraft - We also offer to you overdraft against your self-occupied residential or commercial property and you save money by paying interest only on the amount utilized.

High tenure loans for ease of repayment. Attractive interest rates.

COMMERCIAL VEHICLE FINANCE

Truck? Tempo? or a Tipper? If

some one is looking for finance to buy commercial

vehicle. We offer hassle-free Commercial Vehicle Loan with the best terms for funding at the most attractive rates in India.
WORKING CAPITAL FINANCE

HDFC a bank with substantial appetite for recognized credits., they have a team of customer-driven relationship managers with wide industry experience in various segments. HDFC provide working capital finance by way of cash credit or loans suitably structured for the transporter to fund day-to-day operations like fuel, tyre replacement, repairs, salary, maintenance, etc.

CREDIT CARDS:
Besides arming one with unmatched spending power, HDFC Banks Credit Cards are designed to meet ones unique needs.

INTERNATIONAL SILVER CREDIT CARD Rewards points, Insurance to suit ones needs! Loyalty does definitely reap rewards with HDFC Bank with lower interest rates and privilege pricing on our products. Features & benefits 1) Add on cards Get up to 3 supplementary cards for your spouse, parents, siblings (own brother/sister), son

and/or daughter (over 18 years) and allow them to enjoy the many benefits of a HDFC Bank International Silver Credit Card. 2) Zero liability on lost card Report your credit card loss immediately to our executives at our 24-hour call centers. After reporting to us, you carry zero liability on any fraudulent transactions on your card. 3) Widely accepted Accepted at over 110,000 merchant establishments across India and Nepal and close to 18 million merchant establishments around the world.

GOLD CREDIT CARD

Features & benefits Upto5%cashbackonairticketing Get a whopping 5% cash back on any domestic air ticket purchased with HDFC Bank Gold Credit Card directly from the Airline Company's website, for transactions above Rs 10000. For transactions up to Rs 10000, get 2.5% cashback. 5% cashback on train ticketing Get 5% cashback on railway tickets purchased with your HDFC Bank Gold Credit Card at the Indian Railway.

Discounts on hotel tariff A whopping 50% discount on hotel stays across India and abroad, through complimentary Silver Benefit membership to the International Business Travelers Club. You are also eligible for up to 50% discounts for car rentals from Hertz-Rent-a-Car, through the IBTC membership.

Insurance benefits HDFC Banks provide air accident cover of Rs.25 lakhs, rail/road accident cover of Rs 3 lakhs and accidental hospitalization cover of Rs 50,000 absolutely free on the card.

Greater reward points With the HDFC Bank Gold Credit Card you earn 2 reward points for every Rs. 100 spent on the card.

Revolving credit facility Pay a minimum amount, which is 5% (subject to a minimum amount of Rs.200) of your total bill amount or any higher amount whichever is convenient and carry forward the balance to a better financial month. For this facility you pay a nominal charge of just 2.95% per month (35.4% annually) (2.85% per month 34.2% annually for HDFC Bank Account Holders).

TITANIUM CREDIT CARD The HDFC Bank Titanium Credit Card is quite simply the most exclusive Credit card you could ask for. Find out all it can do for you. And you'll never be satisfied with anything less. Features & benefits Discounts o n hotel tariff Enjoy a flat 50% discounts on 150 hotels in India and 1500 hotels worldwide, with the complimentary membership to International Business Travellers' Club.

Conversion of reward points to air miles You can redeem your accumulated reward points for air miles on India's top airlines - Jet Airways, Indian, Air Sahara & Kingfisher Airlines.

Lowest ever interest rates If you choose to use the Revolving Credit Facility, you would pay the lowest-ever interest rate of 1.95% per month. This would translate to ample flexibility in terms of financial planning at your convenience.

Zero petrol surcharge Earn while you spend on your fuel!!! As a HDFC Bank Titanium Card customer, you enjoy not only a full waiver of the fuel surcharge that would be normally applicable otherwise, you also get the benefit of earning reward points on these spends.

Lost card liability In case you lose your card, intimate us immediately. If any fraudulent transactions happen after you have intimated to us, you are fully absolved of any liability on those transactions up to Rs. 2.00 lacs.

Interest free credit facility Your Card now gets you the highest Free Credit Period of upto 55 days from the date of purchase (subject to the submission of the charge by the Merchant).

VALUE PLUS CREDIT CARD It's power packed with a host of unmatched features that provides your family with true Value and savings. No wonder we call it the HDFC Bank International Value Plus Credit Card.Like the name suggests, the Value Plus Credit Card brings you added value unlike any other card. It is a Guaranteed Cash Back card which enables you to earn up to 5% Cash Back on your spends. Features & benefits Children Future Secured The happiness and the well-being of your children is your most important responsibility. HDFC Bank values your commitment and has designed a comprehensive insurance package of Rs. 1 Lakh enabling your children to continue their education in the unfortunate event of loss of your life due to accident.

Household Insurance HDFC Bank Value Plus Credit Card also comes with a comprehensive House Hold Insurance Policy that covers damage caused to household contents by fire and burglary up to a value of Rs 1 Lakh.

Worldwide acceptance The HDFC Bank International Value Plus Credit Card is accepted at over 23 million Merchant Establishments around the world, including 110,000 Merchant Establishments in India.

Cash Advance Just step into any one of our ATMs or VISA Member ATMs and withdraw cash up to 30% of your credit limit at a very nominal charge.

Accidental Death In case of death in an air accident your nominated next of kin will receive a compensation of Rs.2, 00,000. And in case of death in a rail or road accident, your nominated next of kin will receive a compensation of Rs.1, 00,000.

DEBIT CARDS
What if you could carry your bank account with you? HDFC Bank Debit Cards give you complete and instant access to the money in your accounts without the risk or hassle of carrying cash. Choose from:

1)

Classic Cards (Easy shop International Debit Card)

2) Specialized Cards(Easy shop Womans Advantage Debit Card) 3) Premium Cards(Easy shop Gold Debit Card)

Easy shop International Debit Card Features & benefits Daily Limits: Rs. 40000 at ATMs for Withdrawal Access your bank account at over 8, 00,000 Visa/Maestro/Cirrus ATMs in India and abroad. Shop at more than 3, 50,000 outlets in India and 13 million worldwide. The amount is debited directly to your account. Use your card overseas. Your account is debited in Rupees regardless of the currency in which you spend. Worldwide assistance from Visa and MasterCard on your card. Easy shop Womans Advantage Debit Card HDFC Bank Easy Shop Woman's Advantage Debit Card is India's first Woman's Debit Card of its kind. Not only does it replace your ATM card, it also opens a world of privileges that match your status and lifestyle.

Features & benefits Cash Back of Re. 1 for every Rs. 200 spent: For every Rs. 200 that you will spend , you will receive Re. 1 as cash back .This cash back is valid on all purchases made through the card, at all times of the year. Specialized Services: A unique service number will be available for Woman's Debit Card customers to avail information / booking for the services listed ahead. Just call, quote your card number and use any of the services.

Entertainment assistance: Dining Referral and Reservation Assistance Flower & Gift Delivery Movie Tickets

Home assistance: Financial Planning & Advisory Services Assistance Electrical & Electronic Gadget Repair Assistance Pest Control Assistance Home Cleaning Assistance

Wellness : Medical Check Up Packages Nursing Care Arrangement

PREPAID CARDS ForexPlus Card HDFC Bank brings you the ForexPlus Travel Card - a pre-paid traveller's card designed to give you a secure and hassle-free travel experience. No more chasing moneychangers. Or paying transaction charges for shopping abroad. The ForexPlus Travel Card is ideal for travelers since it can be blocked if stolen and reloaded, while you are still abroad! In fact, it is the perfect answer to all your foreign exchange needs.

The ForexPlus Travel Card is: Accepted at over 13 million Visa Merchants worldwide Can be used to withdraw cash at 24 hour VISA ATMs anywhere in the world. Reloadable anytime, anyplace. Available in US Dollar, Euro and GBP Currencies.

Comes with a Personal Accident Insurance Covers of Rs 2 lacs Includes Loss of Baggage & Passport reconstruction insurance cover

INVESTMENTS & INSURANCE

Mutual funds Mutual funds are funds that pool the money of several investors to invest in equity or debt markets. Mutual Funds could be Equity funds, Debt funds or balanced funds. Funds are selected on quantitative parameters like volatility, FAMA Model, risk adjusted returns, and rolling return coupled with a qualitative analysis of fund performance and investment styles through regular interactions / due diligence processes with fund managers.

Advantages of investing into a Mutual Fund A large part of the success of mutual funds is also the advantages they offer in terms of diversification, professional management and liquidity. Flexibility - Mutual Fund investments also offers you a lot of flexibility with features such as systematic investment plans, systematic withdrawal plans & dividend reinvestment.

Affordability - They are available in units so this makes it very affordable. Because of the large corpus, even a small investor can benefit from its investment strategy.

Liquidity - In open ended schemes, you have the option of withdrawing or redeeming your money at any point of time at the current NAV.

Diversification - Risk is lowered with Mutual Funds as they invest across different industries & stocks.

Professional Management - Expert Fund Managers of the Mutual Fund analyze all options based on experience & research.

Insurance HDFC Bank offers a world of choice in insurance. One can now avail of Life - Insurance plans from HDFC Standard Life Insurance.

Financial Planning The Financial Planning service is offered as an option to long term investors. The portfolio is advised on in a passive investment style with the asset category as mutual funds. The planner is suitable for investors who wish to take an asset allocation based, long term investment outlook, ignoring the short term volatilities of financial markets.

Financial Planning takes into account: Desired asset allocation, risk profile and return expectations Building cash flows correlating all expenses and income. Inflation and outflows due to loans are considering in building the financial plan Future goals like retirement, housing and children's education / marriage or other needs

Equities & Derivatives

In financial markets, the only constant thing is change. At such times, HDFC Securities offers you a unique gamut of services designed to put you in charge of your finances and lets you trade in the comfort of your home or office. Finally, you can trade with complete ease. The HDFC Securities trading account has a unique 3-in-1 feature that integrates your HDFC Securities trading account with your existing HDFC bank savings account and existing Demat account. At your instructions, funds / shares can be seamlessly moved from your linked Demat/Bank account to execute your transactions.

FOREX AND TRADE SERVICES If one needs to deal in foreign currency and keep tabs on exchange rates every now and then, transfer monies to India, make payments etc., HDFC Bank has a range of products and services that you can choose from to transact smoothly, efficiently and in a timely manner. Foreign Exchange and Trade Services

The following are different methods of transacting in Foreign Exchange and remitting money.

Travellers Cheques Foreign Currency Cash Foreign Currency Drafts Cheque Deposits Remittances Cash to Master Trade Services Forex Services Branch Locator

PAYMENT SERVICES With HDFC Bank's payment services, one can bid goodbye to queues and paper work. Our range of payment options make it easy for you to pay for a variety of utilities and services. NetSafe: Now shop online without revealing your HDFC Bank Credit Card number. BillPay: Pay your telephone, electricity and mobile phone bills at your convenience. Through the Internet, ATMs, your mobile phone and telephone - with BillPay, our comprehensive bill payments solution. InstaPay: Pay your bills, make donations and subscribe to magazines without going through the hassles of any registration. DirectPay: Shop or Pay bills online without cash or card. Debit your account directly with our DirectPay service! Visa Money Transfer: Transfer funds to any Visa Card (debit or credit) within India at your own convenience through HDFC Bank's NetBanking facility. e-Monies National Electronic Funds Transfer: Transfer funds from your account to other Bank accounts across India - FREE of cost! Online Payment of Excise & Service Tax: Make your Excise and Service Tax payments at your own convenience through HDFC Bank's NetBanking facility.

PRIVATE BANKING HDFC Bank offers Private Banking services to high net worth individuals and institutions. Our team of seasoned financial and investment professionals provide objective guidance backed by thorough research and in-depth analysis keeping in mind your financial goals. Multiple Recognition from Euromoney: At HDFC Bank, we have always strived towards providing exceptional service to each of our esteemed customers. As testament to this dedication, we have earned the following ranks in a recently conducted Euromoney Survey. Rated as the Best Private Bank in the Super Affluent Category in India.

NRI BANKING
NRI FIXED DEPOSITS

Features & Benefits Open the deposit jointly with any other NRI Avail of a loan of up to 75% of your deposit Repatriate your complete deposit (principal and interest) at any time. The entire deposit (principal and interest) is exempt from tax.

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

LARGE CORPORATES We offer blue chip companies in the India, a full range of client-focused corporate banking services, including working capital finance, trade and transactional services, foreign exchange and cash management, to name a few. The product offerings are suitably structured taking into account a client's risk profile and specific needs. Based on our superior product delivery, industry benchmark service levels and strong customer orientation, we have made significant inroads into the formal banking consortia of a number of Indian companies including multinationals, domestic business houses and prime public sector companies.

Funded Services Working Capital Finance Bill Discounting Export Credit Short Term Finance Structured Finance Term Lending

Non Funded Services Letter of Credit Collection of Documents Bank Guarantees

Value Added Services

Syndication Services Real Time Gross Settlement Cash Management Services Channel Financing Vendor Financing Corporate Salary Accounts Reimbursement Account

Forex Desk Money Market Desk Derivatives Desk Employees Trusts Cash Surplus Corporates Tax Collection Bankers to Right/Public Issue

Internet Banking
Supply Chain Management Payment Gateway Services Corporate Internet Banking

Supply Chain Partners At HDFC Bank we create Supply Chain Finance solutions that enable our clients to automate supply chain management resulting in operational efficiency and supply chain gains. Our vast array of services and supply chain solutions help in seamless transfer of funds, faster delivery of goods and reduction of processing costs. And all this from our website or our revolutionary ENet service

Agricultural Lending Everyone who is involved in agricultural industry knows that the business is not usual. Each agribusiness faces different challenges and has unique needs. From the fluctuating cash flows to the unpredictability of the weather, managing a successful agribusiness requires a distinctive approach.That's why the HDFC Bank has solutions that are chiefly dedicated to agribusiness.

Small & Medium Enterprises At HDFC Bank we understand how much of hard work goes into establishing a successful SME. We also understand that your business is anything but "small" and as demanding as

ever. And as your business expands and enters new territories and markets, you need to keep pace with the growing requests that come in, which may lead to purchasing new, or updating existing plant and equipment, or employing new staff to cope with the demand. That's why we at HDFC Bank have assembled products, services, resources and expert advice to help ensure that your business excels. Our solutions are designed to meet your varying needs. The following links will help you identify your individual needs.

Funded Services Funded Services from HDFC Bank are meant to directly bolster the day-to-day working of a small and a medium business enterprise. From working capital finance to credit substitutes; from export credit to construction equipment loan - we cater to virtually every business requirement of an SME.

Non-Funded Services Under Non-Funded services HDFC Bank offers solutions that act as a catalyst to propel your business. Imagine a situation where you have a letter of credit and need finance against the same or you have a tender and you need to equip yourself with a guarantee in order to go ahead. This is exactly where we can help you so that you don't face any roadblocks when it comes to your business.

Specialized Services HDFC Bank is one of the most trusted entities when it comes to specialized services like selling of precious metals to customers. Under specialized services you can also avail customized control of your value chain through our internet banking platform. Value Added Services There is a plethora of services that we offer under value added services. There's corporate salary account which ensures smooth payment methods to your staff. You can avail an assortment of credit cards and debit cards from our merchant services. Internet Banking Internet banking is a revolutionary service under the banking sector and HDFC Bank is a forerunner in providing you with this service. We provide state-of-the-art payment gateway

services to industries and companies in order to ease transaction processing. This in turn enhances the credibility of your business and makes banking extremely cost-efficient. Financial Institutions & Trusts HDFC Bank provides correspondent bank services to Co-operative Banks, Private Banks, Foreign Banks & RRB's. Banks can leverage HDFC banks branch network , technology and product capability. We have a wide range of products engineered to suit the needs of the banking sector this is backed up by a dedicated Relationship Management Team and dedicated servicing department. Institutions need a bank that uses its financial skills to streamline performance and build business. Therefore we at HDFC Bank focus on responding to the unique environments of each and every client, configuring our core capabilities to satisfy those needs within locations or sectors.

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

Tax Collection wherein customers can directly pay their taxes like Direct taxes, Indirect taxes and Sales Tax collections at their local HDFC Bank.

E-Ticketing - Helps the customer by providing him a direct access to book a Railway Ticket online and get it home delivered.

Opening of L/C's is done by the bank on behalf of Government of India, Mints and Presses, thus facilitating imports for the Government.

Collection of levies and taxes on behalf of Municipal Corporations i.e. Kaylan -Dombivli Municipal Corporation, is undertaken by the Bank.

Disbursement of Pension to retired Employees of Central Govt and Defence is directly done by HDFC Bank along with the disbursement of pension to the members of EPFO (Employees Provident Fund Organization).

Electronic Collection of fees on behalf of DGFT is done by the bank too

The success of HDFC Bank in Kashmir The success of HDFC Bank in the state (Kashmir) has largely been due to Mr Zubair Iqbal. Zubair Iqbal has come a long way since he took his first job with Jammu & Kashmir Bank. Today, as State Head & Vice President of HDFC Bank in J&K, besides notching new highs for himself and the Bank. Zubair Iqbal in an interview talks about the success and the strategies used for the same by him to help HDFC Bank reach new heights in the state. We would like to present the same here so that it becomes clear as what led HDFC Bank to such great heights of customer delight and satisfaction which in turn led to the enormous growth of the Bank in the state. Q. You are being looked as the man responsible for inducing competition and professionalism in the banking industry in the State of Jammu & Kashmir? How have you been able to achieve this task?

Z Iqbal: Thinking Big is a philosophy I have embraced since childhood and it has proven to be an effective way to achieve success. I had always earnest desire to do something for the Society and standout from the herd. And when opportunity came in 2004 in the shape of HDFC Bank, I took up the challenge and started first branch of HDFC Bank in Kashmir. The Branch started operations in January 2005. At that time private sector was little known in J&K especially Kashmir and even lot of my friends were skeptical about its success and raised eyebrows about by decision. However, with the blessings of my parents, support of my wife, hard work put up by my team members and the trust reposed by our customers, the branch delivered beyond expectations and created history in so many internal parameters of the Bank. Basis the performance of this branch, I was elevated to Cluster Head position just after 18 months (perhaps fastest in the Banks history) and was given responsibility to Head J&K and North Punjab branches. This was the kind of break I was looking at and thereafter I have never looked back and took the network of branches in J&K to 60 and ATMS to 165 with a team of just five people. This expansion created job opportunities for the youth in the state and today I have a privilege to lead a strong Team of over 1000 employees. During this time we have been able to create over 600 indirect job opportunities for the State Subjects. We have emerged as one of the largest employers in Private Sector in J&K and have become a vehicle of economic growth. In a short span of time, we have taken our CD Ratio to 42% with significant contribution in priority sector. Q. What elements helped you and the organisation move forward in the direction of unmatched success? Z Iqbal: I believe clarity of the goal and the sincere and sustained effort to accomplish that goal are key ingredients to success. Everyone likes to win but how many are willing to put in that extra effort and time to prepare to win. It takes sacrifices, self-discipline and above all honest and dedicated approach. Whatever, I have achieved today has not come by chance or luck. I had to put in lot of hard work, determination, sustained efforts and above all positive attitude with ethics and integrity. There is no substitute to hard work. The harder you work, the luckier you get. You have to be cool, calm and composite in all circumstances. You will never get ideal conditions in life. With every difficulty, with every obstacle, with every failure, I got more empowered, more energized and nearer to my goal. May be these are the reason that I come across as what I am today.

Q: You have already created a niche for yourself and everything seems to be going your way. What have been your key ingredients to success? What are your future plans and where do you see yourself five years down the line? Z. Iqbal: I really believe that in order to succeed you have to be good, smart and know your business; you also need to go against the tide which may take lot of guts and conviction. In some of the best strategies I have made, I went against what everybody else believed. We all have instincts. The important thing is to know how to use them. You may have superb academic credentials, but if you do not use your instincts, you might have a hard time getting to and staying at the top. I have never been complacent. I never rest even if things may be going in right direction. Good Times are only a result of the hard work and dedication. Todays efforts produce results of tomorrow. I believe that in order to keep the good times rolling; we need to keep on planting those seeds every day. If you stop focusing even for one minute, you will start slipping backwards. It took many years of hard work and intense focus to get to the top. However, this would have not been possible without the untiring efforts put in by all categories of my staff and the mentorship of Mr Ravi Narayanan, Senior Executive Vice President, HDFC Bank who gave required flip to my personality and fined tuned my career to achieve the impossible. Regarding future plans let me say, we have just made the beginning and we are yet to conquer the skies. I have never really thought where I want to see myself five years down the line but this journey towards excellence will continue and I believe if you work with sincerity, integrity and ethics, destinations will follow and you will have the liberty and privilege to choose among them. SUGGESTIONS: From the report and the practical training that we did at HDFC Bank We reached out at the following suggestions: that the biggest challenge for banking industry is to serve the mass market of Kashmir region. Companies have shifted their focus from product to customer. The better they understand their customers, the more successful they will be in meeting their needs. In order to mitigate above mentioned challenges HDFC bank must cut their cost of their services especially in rural areas.

 Another aspect to encounter the challenges is product differentiation. Apart from traditional banking services, HDFC bank must adopt some product innovation so that they can compete in gamut of competition. Technology up gradation is an inevitable aspect to face challenges. The level of consumer awareness is significantly higher as compared to previous years. Now-a days they need internet banking, mobile banking and ATM services. Expansion of branch size in order to increase market share is another tool to combat competitors.

CONCLUSION The banking scenario has changed drastically in the Kashmir valley. The changes which have taken place in the last five years are more than the changes took place in last fifteen years because of the institutionalisation, liberalisation, globalisation and automation in the banking industry. Banking system has several outstanding achievements to its credit, the most striking of which is its reach. Indian banks are now spread out into the remote corners of our country. In terms of the number of branches, Indias banking system is one of the largest in the world. According to the Banker 2012, India has 20 banks within the worlds top 1000 out of which only 6 are within the top 500 banks. Today banking sector is marked by high customer expectations and technological innovations. Technology is playing a crucial role in the day to day functioning of the banks. These banks that have harnessed and leveraged technology best have a strategic advantage. To face competition it is necessary for banks to absorb the technology and upgrade their services. In todays context banks are following the strategy of relationship banking which is need of the hour. The customer services are playing a very significant role in banking business. In India major events leading to deregulation, liberalisation and privatisation have unleashed forces of competition, making the banks run for their business, not only to create the customer, but more difficult to run for their business, not only to create the customer, but more difficult to retain the customer. Prompt and efficient customer service, thus, has become

very significant. Relationship banking is the new paradigm for survival and success, embracing a share of customer approach to growth by identifying, protecting and expanding customer relationship. The HDFC Bank believes in adopting and adhering to the best corporate governance practices and continuously benchmarking itself against each such practices in the industry. The Bank understands and respects its fiduciary role and responsibility to shareholders and strives hard to meet their expectations. I believe that the best board practices. Transparent disclosures and shareholder empowerment are necessary for creating shareholder value. The cardinal principles such as independence, Accountability, responsibility, transparency, fair and timely disclosures, and credibility serve as the means for implementing the philosophy of corporate governance in letter and in spirit. The banks employees are very friendly among their coordinates and also to their customers.

BIBLIOGRAPHY http://www.hdfcbank.com/htdocs/common/pdf/corporate/Annual_Report11_12.pdf http://www.indiainfoline.com/Markets/Company/Background/CompanyProfile/HDFC-Bank-Ltd/500180 http://www.hdfcbank.com/aboutus/general/technology.htm http://www.info.shine.com/company/HDFC-Bank-Ltd/133.aspx. http://www.hdfcbank.com/personal/accounts/default.htm. http://www.hdfcbank.com/personal/customer_center/offers_deals.htm.

http://www.hdfcbank.com/common/customer_center.htm. http://www.pppinindia.com/financing.asp. http://indiancorporateworld.com/hdfc.html. http://www.hdfcbank.com/personal/default.htm. http://www.hdfcbank.com/personal/investments/default.htm. http://www.hdfcbank.com/personal/access/default.htm. http://www.hdfcbank.com/aboutus/awards/Corporate_Governance_Rating.htm. http://ww11w.moneycontrol.com/india/mutualfunds/mfinfo/05/29/detsnapshot/imdesc /HDFC%20Top%20200%20Fund%20(G)/ffdesc/HDFC%20Asset%20Management% 20Co.%20Ltd./imid/MZU009/imffid/HD. http://www.marketwatch.com/investing/stock/HDB/profile. http://www.marketwatch.com/investing/stock/HDB/analystestimates. http://www.tradingmarkets.com/hpad/index.cfm?purl=/.site/news/Stock%20News/24 31073/. http://pulse.alacra.com/analyst-comments/HDFC_Bank_Limited-C1052559. http://www.infolanka.com/org/diary/212.html.