INTRODUCTION TO BANKING

History of Banking In India

Without a sound and effective banking system in India it cannot have a

healthy economy. The banking system of India should not only be hassle
free but it should be able to meet new challenges posed by the technology
and any other external and internal factors.

For the past three decades India's banking system has several outstanding
achievements to its credit. The most striking is its extensive reach. It is no
longer confined to only metropolitans or cosmopolitans in India. In fact,
Indian banking system has reached even to the remote corners of the
country. This is one of the main reasons of India's growth process.

The government's regular policy for Indian bank since 1969 has paid rich
dividends with the nationalization of 14 major private banks of India.

Not long ago, an account holder had to wait for hours at the bank counters
for getting a draft or for withdrawing his own money. Today, he has a
choice. Gone are days when the most efficient bank transferred money from
one branch to other in two days. Now it is simple as instant messaging or
dials a pizza. Money has become the order of the day.

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

 Early phase from 1786 to 1969 of Indian Banks

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

To make this write-up more explanatory, I prefix the scenario as Phase I,

Phase II and Phase III.

Phase I

The General Bank of India was set up in the year 1786. Next came Bank of
Hindustan and Bengal Bank. The East India Company established Bank of
Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as
independent units and called it Presidency Banks. These three banks were
amalgamated in 1920 and Imperial Bank of India was established which
started as private shareholders banks, mostly Europeans shareholders.

In 1865 Allahabad Bank was established and first time exclusively by

Indians, Punjab National Bank Ltd. was set up in 1894 with headquarters at
Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank
of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up.
Reserve Bank of India came in 1935.

During the first phase the growth was very slow and banks also experienced
periodic failures between 1913 and 1948. There were approximately 1100
banks, mostly small. To streamline the functioning and activities of
commercial banks, the Government of India came up with The Banking
Companies Act, 1949 which was later changed to Banking Regulation Act
1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of
India was vested with extensive powers for the supervision of banking in
India as the Central Banking Authority.

During those days public has lesser confidence in the banks. As an aftermath
deposit mobilization was slow. Abreast of it the savings bank facility
provided by the Postal department was comparatively safer. Moreover, funds
were largely given to traders.

Phase II

Government took major steps in this Indian Banking Sector Reform after
independence. In 1955, it nationalized Imperial Bank of India with extensive
banking facilities on a large scale specially in rural and semi-urban areas. It
formed State Bank of India to act as the principal agent of RBI and to handle
banking transactions of the Union and State Governments all over the
country.

Seven banks forming subsidiary of State Bank of India was nationalized in

1960 on 19th July, 1969, major process of nationalization was carried out. It
was the effort of the then Prime Minister of India, Mrs. Indira Gandhi. 14
major commercial banks in the country were nationalized.

Second phase of nationalization Indian Banking Sector Reform was carried

out in 1980 with seven more banks. This step brought 80% of the banking
segment in India under Government ownership.
The following are the steps taken by the Government of India to Regulate
Banking Institutions in the Country:

 1949: Enactment of Banking Regulation Act.

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

After the nationalization of banks, the branches of the public sector bank
India rose to approximately 800% in deposits and advances took a huge
jump by 11,000%
Banking in the sunshine of Government ownership gave the public implicit
faith and immense confidence about the sustainability of these institutions.

Phase III

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

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

The financial system of India has shown a great deal of resilience. It is

sheltered from any crisis triggered by any external macroeconomics shock as
other East Asian Countries suffered. This is all due to a flexible exchange
rate regime, the foreign reserves are high, the capital account is not yet fully
convertible, and banks and their customers have limited foreign exchange
exposure.

Nationalization Of Banks In India

The nationalization of banks in India took place in 1969 by Mrs. Indira

Gandhi the then prime minister. It nationalized 14 banks then. These banks
were mostly owned by businessmen and even managed by them.

Before the steps of nationalization of Indian banks, only State Bank of

India (SBI) was nationalized. It took place in July 1955 under the SBI Act of
1955. Nationalization of Seven State Banks of India (formed subsidiary)
took place on 19th July, 1960.

The State Bank of India is India's largest commercial bank and is ranked one
of the top five banks worldwide. It serves 90 million customers through a
network of 9,000 branches and it offers -- either directly or through
subsidiaries -- a wide range of banking services.

The second phase of nationalization of Indian banks took place in the year
1980. Seven more banks were nationalized with deposits over 200 crores.
Till this year, approximately 80% of the banking segments in India were
under Government ownership.

After the nationalization of banks in India, the branches of the public sector
banks rose to approximately 800% in deposits and advances took a huge
jump by 11,000%.

 1955: Nationalization of State Bank of India.

 1959: Nationalization of SBI subsidiaries.
 1969: Nationalization of 14 major banks.
 1980: Nationalization of seven banks with deposits over 200 crores.

Scheduled Commercial Banks In India

The commercial banking structure in India consists of:

 Scheduled Commercial Banks in India

 Unscheduled Banks in India

Scheduled Banks in India constitute those banks which have been included in
the Second Schedule of Reserve Bank of India(RBI) Act, 1934. RBI in turn
includes only those banks in this schedule which satisfy the criteria laid down
vide section 42 (6) (a) of the Act.

As on 30th June, 1999, there were 300 scheduled banks in India having a total
network of 64,918 branches. The scheduled commercial banks in India
comprise of State bank of India and its associates (8), nationalized banks (19),
foreign banks (45), private sector banks (32), co-operative banks and regional
rural banks.

"Scheduled banks in India" means the State Bank of India constituted under
the State Bank of India Act, 1955 (23 of 1955), a subsidiary bank as defined in
the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), a
corresponding new bank constituted under section 3 of the Banking
Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970),
or under section 3 of the Banking Companies (Acquisition and Transfer of
Undertakings) Act, 1980 (40 of 1980), or any other bank being a bank
included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of
1934), but does not include a co-operative bank".

"Non-scheduled bank in India" means a banking company as defined in clause

(c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949), which is
not a scheduled bank".

Some of the Scheduled Banks in India (Public Sector):

 State Bank of India

 Bank of India
 Central Bank of India
 Punjab National Bank
 Syndicate Bank

The following are the Scheduled Banks in India (Private Sector):

 Axis Bank Ltd

 ICICI Banking Corporation Bank Ltd
  HDFC Bank Ltd
 Centurion Bank Ltd
 Bank of Punjab Ltd
 IDBI Bank Ltd

About hdfc

HDFC Bank (NYSE: HDB), one amongst the firsts of the new generation, tech-savvy
commercial banks of India, was incorporated in August 1994, after the Reserve Bank of
India allowed setting up of Banks in the private sector. The Bank was promoted by the
Housing Development Finance Corporation Limited, a premier housing finance company
(set up in 1977) of India. The Operating Profit for the quarter ended June 30, 2009 grew
by 47.8 % to Rs. 1518.7 crores over the corresponding quarter of the previous year.
Provisions (other than tax) and contingencies for the quarter were Rs. 658.8 crores as
against Rs. 657.4 crores in the March 31, 2009 quarter .After providing Rs.253.7 crores
for taxation, the Bank earned a Net Profit of Rs. 606.1 crores , an increase of 30.5%
over the corresponding quarter ended June 30, 2008.

History

The Housing Development Finance Corporation Limited (HDFC) was amongst the first
to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a
bank in the private sector, as part of the RBI's liberalization of the Indian Banking
Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank
Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations
as a Scheduled Commercial Bank in January 1995.

Housing Development Finance Corporation Limited, more popularly known as HDFC

Bank Ltd, was established in the year 1994, as a part of the liberalization of the Indian
Banking Industry by Reserve Bank of India (RBI). It was one of the first banks to receive
an 'in principle' approval from RBI, for setting up a bank in the private sector. The bank
was incorporated with the name 'HDFC Bank Limited', with its registered office in
Mumbai. The following year, it started its operations as a Scheduled Commercial Bank

DISTRIBUTION NETWORK

HDFC Bank is headquartered in Mumbai. As of June 30, 2016, the Bank’s

distribution network was at 4,541 branches across 2,587 cities. All branches are linked
online on a real-time basis. Customers across India are also serviced through multiple
delivery channels such as Phone Banking, Net Banking, Mobile Banking, and SMS based
banking. The Bank’s expansion plans take into account the need to have a presence in all
major industrial and commercial centers, where its corporate customers are located, as
well as the need to build a strong retail customer base for both deposits and loan
products. Being a clearing / settlement bank to various leading stock exchanges, the Bank
has branches in centres where the NSE / BSE have a strong and active member base. The
Bank also has a network of 12,013 ATMs across India. HDFC Bank’s ATM network can
be accessed by all domestic and international Visa / MasterCard, Visa Electron / Maestro,
Plus / Cirrus and American Express Credit / Charge cardholders.

Amalgamations
In 2002, HDFC Bank witnessed its merger with Times Bank Limited (a private sector
bank promoted by Bennett, Coleman & Co. / Times Group). With this, HDFC and Times
became the first two private banks in the New Generation Private Sector Banks to have
gone through a merger. In 2008, RBI approved the amalgamation of Centurion Bank of
Punjab with HDFC Bank. With this, the Deposits of the merged entity became Rs.
1,22,000 crore, while the Advances were Rs. 89,000 crore and Balance Sheet size was
Rs. 1,63,000 crore.

Tech-Savvy
HDFC Bank has always prided itself on a highly automated environment, be it in terms of
information technology or communication systems. All the braches of the bank boast of
online connectivity with the other, ensuring speedy funds transfer for the clients. At the
same time, the bank's branch network and Automated Teller Machines (ATMs) allow
multi-branch access to retail clients. The bank makes use of its up-to-date technology,
along with market position and expertise, to create a competitive advantage and build
market share.

Capital Structure

As on 30th September, 2016 the authorized share capital of the Bank is Rs. 650 crore.
The paid-up share capital of the Bank as on the said date is Rs 509,12,67,434/-
( 2545633717 ) equity shares of Rs. 2/- each). The HDFC Group holds 21.34 % of the
Bank's equity and about 18.58 % of the equity is held by the ADS / GDR Depositories (in
respect of the bank's American Depository Shares (ADS) and Global Depository Receipts
(GDR) Issues). 32.04 % of the equity is held by Foreign Institutional Investors (FIIs) and
the Bank has 4,74,443 shareholders.

HDFC Bank offers a wide range of commercial and transactional banking servicesand
treasury products to wholesale and retail customers. The bank has three key business
segments:

Wholesale Banking Services

The Bank's target market ranges from large, blue-chip manufacturing companies inthe
Indian corporate to small & mid-sized corporates and agri-based businesses. For these
customers, the Bank provides a wide range of commercial and transactional banking
services, including working capital finance, trade services, transactionalservices, cash
management, etc. The bank is also a leading provider of structuredsolutions, which
combine cash management services with vendor and distributor finance for facilitating
superior supply chain management for its corporate customers.Based on its superior
product delivery / service levels and strong customer orientation, the Bank has made
significant inroads into the banking consortia of anumber of leading Indian corporates
including multinationals, companies from thedomestic business houses and prime public
sector companies. It is recognised as aleading provider of cash management and
transactional banking solutions to corporatecustomers, mutual funds, stock exchange
members and banks.

Retail Banking Services

The objective of the Retail Bank is to provide its target market customers a full range of
financial products and banking services, giving the customer a one-stop window for all
his/her banking requirements. The products are backed by world-class service and
delivered to customers through the growing branch network, as well as through
alternative delivery channels like ATMs, Phone Banking, Net Banking and
MobileBanking.The HDFC Bank Preferred program for high net worth individuals, the
HDFC Bank Plus and the Investment Advisory Services programs have been designed
keeping inmind needs of customers who seek distinct financial solutions, information
andadvice on various investment avenues. The Bank also has a wide array of retail loan
products including Auto Loans, Loans against marketable securities, Personal Loansand
Loans for Two-wheelers. It is also a leading provider of Depository Participant(DP)
services for retail customers, providing customers the facility to hold their investments in
electronic form.HDFC Bank was the first bank in India to launch an International Debit
Card inassociation with VISA (VISA Electron) and issues the MasterCard Maestro debit
cardas well. The Bank launched its credit card business in late 2001. By March 2010, the
bank had a total card base (debit and credit cards) of over 14 million. The Bank isalso one
of the leading players in the “merchant acquiring” business with over 90,000Point-of-sale
(POS) terminals for debit / credit cards acceptance at merchant establishments. The Bank
is well positioned as a leader in various net based B2Copportunities including a wide
range of internet banking services for Fixed Deposits, Loans, Bill Payments, etc.

Treasury

Within this business, the bank has three main product areas - Foreign Exchange and
Derivatives, Local Currency Money Market & Debt Securities, and Equities. With
theliberalisation of the financial markets in India, corporates need more sophisticated risk
management information, advice and product structures. These and fine pricingon various
treasury products are provided through the bank's Treasury team. To comply with
statutory reserve requirements, the bank is required to hold 25% of its deposits in
government securities. The Treasury business is responsible for managing the returns and
market risk on this investment portfolio.

Credit Rating

The Bank has its deposit programs rated by two rating agencies - Credit Analysis
&Research Limited (CARE) and Fitch Ratings India Private Limited. The Bank's
FixedDeposit programme has been rated 'CARE AAA (FD)' [Triple A] by CARE,
whichrepresents instruments considered to be "of the best quality, carrying
negligibleinvestment risk". CARE has also rated the bank's Certificate of Deposit (CD)
programme "PR 1+" which represents "superior capacity for repayment of short term
promissory obligations". Fitch Ratings India Pvt. Ltd. (100% subsidiary of Fitch Inc.)has
assigned the "AAA ( ind )" rating to the Bank's deposit programme, with theoutlook on
the rating as "stable". This rating indicates "highest credit quality" where"protection
factors are very high"

The Bank also has its long term unsecured, subordinated (Tier II) Bonds rated byCARE
and Fitch Ratings India Private Limited and its Tier I perpetual Bonds andUpper Tier II
Bonds rated by CARE and CRISIL Ltd. CARE has assigned the ratingof "CARE AAA"
for the subordinated Tier II Bonds while Fitch Ratings India Pvt.Ltd. has assigned the
rating "AAA (ind)" with the outlook on the rating as "stable".CARE has also assigned
"CARE AAA [Triple A]" for the Banks Perpetual bond andUpper Tier II bond issues.
CRISIL has assigned the rating "AAA / Stable" for theBank's Perpetual Debt programme
and Upper Tier II Bond issue. In each of the casesreferred to above, the ratings awarded
were the highest assigned by the rating agencyfor those instruments.

Corporate Governance Rating

The bank was one of the first four companies, which subjected itself to a
CorporateGovernance and Value Creation (GVC) rating by the rating agency, The
CreditRating Information Services of India Limited (CRISIL). The rating provides
anindependent assessment of an entity's current performance and an expectation on
its"balanced value creation and corporate governance practices" in future. The bank has
been assigned a 'CRISIL GVC Level 1' rating which indicates that the bank'scapability
with respect to wealth creation for all its stakeholders while adopting soundcorporate
governance practices is the highest.

BOARD OF DIRECTORS

Sr. No. Name of Director Designation

1 Mrs. Shyamala Gopinath Part Time Non- Executive

Chairperson and Independent
 Director

2
Mr. Partho Datta Independent Director

3 Mr. Bobby Parikh Independent Director

4 Mr. A N Roy Independent Director

5 Mr. Malay Patel Independent Director

6 Mr. Umesh Chandra Sarangi Independent Director

7 Mr. Keki Mistry Non-Executive Director

8 Mrs. Renu Karnad Non-Executive Director

9 Mr. Aditya Puri Managing Director

10 Mr. Paresh Sukthankar Deputy Managing Director

11 Mr. Kaizad Bharucha Executive Director

12 Mr. Srikanth Nadhamuni Additional Director

 AWARDS & ACHIEVEMENTS

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

. We realised that only a single-minded focus on product quality and service excellence
would help us get there. Today, we are proud to say that we are well on our way towards
that goal. It is extremely gratifying that our efforts towards providing customer
convenience have been appreciated both nationally and internationally.

 Institutional Investor, the global finance magazine has ranked HDFC Bank MD
Mr. Aditya Puri the best CEO and HDFC Bank the best firm in the Banks sector
of Asia ex-Japan.
 HDFC Bank has won top honors at the Asia money Foreign Exchange Poll 2016
and Cash Management Poll 2016.
 HDFC Bank has scored a hat-trick at the ‘Brand Z Top 50 Most Valuable Indian
Brands Ranking’. The Bank has been ranked India's most valuable brand for the
3rd consecutive year.
 HDFC Bank MD, Mr. Aditya Puri has been recognized by CNBC-TV18 with
Outstanding Business Leader of the year award at the India Business Leader
Awards (IBLA) 2015-16 held in New Delhi.

 HDFC Bank has won the IDRBT Award for Best Bank in Banking Technology
Excellence for the year 2015-16. The jury has awarded HDFC Bank for "Use of
Technology for Fraud Prevention and NPA Management."
 HDFC Bank has won Dun & Bradstreet Corporate Award 2016 in the Banking
sector. At a function organized in Mumbai, the award was received by HDFC
Bank's Country Head - Operations & Technology, Mr. Bhavesh Zaveri.

 Euromoney Survey 2015 - Best Private Banking services for Super Affluent
Clients

 Outlook Money Awards 2015 - Best Bank of the Year -Runner up &
Institutional Distributor of the Year
 Best Bank For Financial Inclusion - UTI Mutual fund CNBC TV 18 Financial
Advisory Awards 2015
 VISION

To be the leading provider of the financial services in India and a major global bank

MISSION
Our mission is to be "a World Class Indian Bank", benchmarking ourselves against
international standards and best practices in terms of product offerings, technology,
service levels, risk management and audit & compliance. The objective is to build sound
customer franchises across distinct businesses so as to be a preferred provider of banking
services for target retail and wholesale customer segments, and to achieve a healthy
growth in profitability, consistent with the Bank's risk appetite. We are committed to do
this while ensuring the highest levels of ethical standards, professional integrity,
corporate governance and regulatory compliance..

INTRODUCTION TO TOPIC

Every organization needs to have well trained and experienced people to perform
theactivities that have to be done. This is the most important aspect of Human
ResourceManagement. It is widely known that Human Resource Management helps
people toexpand their capabilities and offer numerous opportunities. It is also felt that
theexpanded capabilities and opportunity for people at work will lead directly
toimprovement in operating effectiveness. The human resources approach means that
better people achieve better results. So if the current or potential job occupant canmeet
this requirement, training is not important. But when this is not the case, it isnecessary
to raise the skill levels an increase the versatility and adaptability of employees.
Inadequate job performance or a decline in productivity or changesresulting out of job
redesigning or a technological break –through require some typeof training and
development effort. As the jobs become more complex, theimportance of employee
development through training also increases.In a rapidly changing society, employees
training and development is not only anactivity that is desirable but also an activity that
an organization must commitresources to if, it is to maintain a viable and
knowledgeable work force. In factindustrial to, if is to maintain a viable and
knowledgeable work force. In factindustrial growth cannot take place properly without
trained manpower. Thetechnological advancement is taking place at such a rapid speed
that the knowledgeand skill required become obsolete at much faster rate. In order to
cope up with thefast changes in requirement of skill and knowledge due to
advancement of technologythe need for systematic training has been felt in almost all
organizations.Having selected most suitable persons for various jobs in the organization
throughthe application of scientific techniques, the next function of personnel
management isto arrange for their training. All types of jobs in the organization usually
require sometype of training for their efficient performance. Employees talent are not
fully productive without a systematic training programme. Moreover, big
organizationhires a large number of young people every year. Because the vat majority
of these donot know how to perform jobs assigned to them in work at some college or
institution, must receive some initial training in the form of orientation to the policies,
practices and ways of their employing organization. The need for a systematic training
has increased because of rapid technological changes, whichcreate new jobs and
eliminate old ones. New Jobs require some of special skills whichmay be developed in
old workforce only by giving them necessary training.The employees try to train
themselves by trial and error or by observing other if notraining programme exists in the
organization. But it is an established fact that theabsence of systematic training
programme will result in higher training costs. Theemployee will take much longer time
in learning the skills. He may not be able tolearn the best operating methods. Thus,
adequate training is equally desirable for theorganization and the employee. Now the
question arises “ What is training”?

Training is a process of learning a sequence of programmed behaviour. It isapplication of

knowledge. It gives people an awareness of the rules and procedures to guide their
behaviour. It attempts to improve their performance onthe current job or prepare them
for an intended job, actually training is adevelopmental process. It should cover not only
those activities which improve job performance but also cover those which bring, about
growth of the personality,help individuals in the progress towards maturity and
actualization of their potentialcapacities so that they become not only good employees,
but better men and women.In organization terms, it is intended to equip persons to
earn promotion and holdgreater responsibility. This may well include not only imparting
specific skills andknowledge but also inculcating certain personality and mental
attitudes. Training isfelt necessity for an organization due to its educative point of view
because it does not provide definitive answers, but rather it develops a logical and
rational mind that candetermine relationships among pertinent variable and there by
understand phenomena.

Basic purposes of Training

The purposes of training for employees would be clear from the following observations
which were made by the different authorities from time to time.

1)To increase productivity

Scott L.C. says that instruction can help employee increase their level of performanceon
their present assignment. Increased human basic purposes of training The purposes of
training for employees would be clear from the followingobservations which were made
by the different authorities from time to time.

2)To increase productivity: Scott L.C.

Says that instruction can help employee increase their level of performance on their
present assignment. Increased human performance often directly leads to increased
operational productivity and increased company profit. Performance often directly leads
to increased operational productivity and increased company profit.

3)To improve quality:

Boocock Sarane S.

says that better-informed workers are less likely to make operational, mistake. Quality
increase may be in relationship to a company product or service, or in reference to the
intangible organizational atmosphere:

4) To help a company fulfill its future personal needs.

Fine Sydney S. Says that organizations that have a good internal educational programme
will have to make less drastic manpower changes and adjustments in the event of
sudden personnel alternations. When the need arise, organizational vacancies can more
easily be staffed from internal sources if a company initiate and maintains an adequate
instructional programme for both its non-supervisory and managerial employees.

To improve organizational climate:

Greer Thomas V says that an endless chain of positive reactions results from a well-
planned training programme. By the programme, production and product quality
mayimprove, financial incentives may than be increased, internal promotions
becomestressed, less supervisory pressure ensure that base pay rate increases result.

To improve health and safety:

Florsheim Henry says that proper training can prevent industrial accidents. A safer work
environment leads to more mental attitudes on the part of employees.

Obsolescence prevention:

Aronoff J and Litwin says that training and development programmes foster the
initiative and creativity of employees and help to prevent manpower obsolescence,
which may be due to age, or motivation, or the inability of a person to adapt himself to
technological changes.

Personal growth:

Wiener E.L. and Attwood D.A. say that employee on a personal basis gainindividually
from their exposure to educational experience. Moreover, managementdevelopment
programmes seem to give participants a wider awareness, an enlargedskill, and
enlightened altruistic philosophy, and make enhanced personal growth possible.

The Banking Sector, one of the constituent of the financial system, spurs
economicefficiency by allocating saving to high investment and reflects the economic
health of the country. The sector acts as a catalyst and go between for the saving class
on theone hand and investing public on the other, there by facilitating efficient
allocation of financial resources according to the plan priorities/ market forces in the
liberalizedenvironment. They are not necessarily an engine of growth and they do not
have to,rather it has to be fuel injection system-mobilizing savings and pumping them
intoinvestment engine-the more efficiently, the better.

Worldwide experience confirms that countries with well developed banking

systemsgrow faster and more consistently than those with a weaker and stringently
regulatedsystem. Experts consider weak macro-economic policies and poor economic
performance responsible for undermining the health of the banking sector, which inturn
impedes effective macro-economic performance thus creating a vicious circle.The Indian
Banking sector was made to evolve in an environment of administeredinterest rates
with stipulation on asset allocation and strong entry barriers primarily tocater to the
country’s social economic needs. While the banking sector has played acrucial role in
widening its reach and have had positive impact on India’s nationalsaving and
channelisation of saving towards investment, its own health got impaired,with worse
economic and qualitative performance.

Low operational efficiency contributed to low profitability and undercapitalisation ,with

erosion in the capital base and a high proportion of non-performing assets. Thequality
of customer satisfaction, and its response to changing international scenario in banking
in terms of computer and communication technologies and productinnovations have
been unsatisfactory especially in the public sector.

HUMAN RESOURCE MANAGEMENT

HRM may be defined as “strategy for acquisition, utilisation, improvement and

preservation of an enterprises human resources. It relates to establishing
jobspecification or the quantitative requirement of job, determining the number of
personnel required and developing the sources of manpower”.

HRM is a double edged weapon-maximum utilisation of which improves productivityand

aids in achieving objectives of an organisation. When faulty used leads tdisruption in the
flow of work, less job satisfaction and constant headache for management personnel.

“HRM” may be defined as the planning, organising, directing and controlling of the
procurement, development, compensation, integration and maintenance andseparation
of human resources to the end that individual, organisational and societalobjectives are
accomplished.

”HRM is not a “One shot” function. It must be performed continuously if

theorganisational objectives are to be achieved smoothly

AIMS & OBJECTIVES OF HRM

To ensure effective utilization of human resources.

To establish and maintain an adequate organisational relationship among all
themembers of an organisation.

To generate maximum development of human resources with in the organisation

To ensure respect for human being by providing various services and welfarefacilities
to the personnel.

To ensure reconcilation of individual/group goals with those of the organisation

insuch a manner that the personnel feel a sense of commitment and loyality towardsthe
organisation.

To identify and satisfy the needs of individuals of offering various monetary andnon-
monetary rewards.

To achieve and maintain high morale among employees in the organisation
bysecuring better human relations.For successful running up of the bank, the role of
HRM should be properly defined. Itdeals with the composition of staff and its capacity of
mobilise itself at all levels toimplement the banks, strategic intentions in order to meet
the challenges ahead. Mostof the managers and the employees are devoted t
administrative and repetitive tasks.

Why HRM is essential

To achieve excellence in all its operations by improving effectiveness of all

itsemployees.

Plan and monitor career development and succession planning.

Recruitment of quality personnel, mainly at entity level.

Provide opportunity to the existing personnel to faster the internal growth.

Performance to be the sole criteria for increments and promotion.

Timely and correct communication for fastening spirit of openness.

To ensure transparency in decision making.

To provide a stimulating work environment.

Simplifications and observance of system and procedures for

standardizationefficiency.

Holding regular operational meeting and to ensure constant improvement

inoperation.

To foster an organisational climate that leads to self motivation and

employeecommitment.

Conceptualise and implement innovative HR policies.The problem of overstaffing in

PSB (Public Sector Banks) may require theredeployment of surplus staff. Changes taking
place in financial system will have awider implication of banking education and training
in the country. As the employeesin the financial system acquire new skills, expertise,
competence and knowledge todeal with the new tasks and responsibilities in the
context of changes taking place inthe field of banking and finance the world over. The
manpower planning will have tochange as the growing financial service sector would
require personnel with the newskills, technical knowledge and competence to deal with
the new skills, technicalknowledge and competence to deal with new products
emerging in the market. The requirement of new skills and application of technology in
the banking operations ask for change in recruitment and selection process followed by
PSBs.

HRD IN BANKS-PERCEIVED CHALLENGES AHEAD

With gradual process of liberalisation and deregulation, the concept of globalisation

iscatching up, leading to increased competition. Consequently, external and
internalenvironments are undergoing constant change and banking organisations will
need torealign themselves to be in tune with the changing reality. Survival and growth
willlargely depend on the organisational willingness and ability to understand and
copeup with the changes. Banks, like other service organisations, will have to shed their
passive and conventional approach and instead be continuously proactive,
innovativeand unconventional. Human Resources Management and Development (HRM
& D)systems are going to be major determining factor in future growth and
effectiveness.In order to generate and facilitate better employee commitment towards
facing thefuture and the changing environment, HRM & D systems have to be given
deimportance and looked at afresh. Banking organisations will need to adopt
anddevelop a total HRM & D Philosopy.

TRAINING AND DEVELOPMENT

Employee Training and development are integral parts of staffing function of

management.

Training implies a systematic procedure where by employee are imparted

technicalknowledge and skills for specific jobs.

Development on the other hand implies educational process aimed at growth andmaturity
of management personnel in terms of insights, attributes adaptability,leadership and
human relations on the basis of conceptual and theoretical knowledge.HDFC has been
paying much attention for the training of their staff. Various training programme to
update the knowledge of the staff. The emphasis is on thedissemination of knowledge,
development of skills and orientation of attitude of thestaff for enabling them to cope up
with the challenges that are taking place in the banking. In kepin with the fundamental
principles of HRM, the bank has perceivedthe training system as mechanism to develop a
competitive workforce by growingthe available talent and to prepare them for meeting
the on going and emergingchallenges of the market forces.

HDFC Bank also conduct training to improve the banker consumer relationship.The
managerial and supervisory training’s are also conducted on every step of promotion.
The training is immediately called whenever any employee is elevated tonext
promotional post. The trained employee is tested by his performance in thetrained area.
The trained employee is given a chance to work with moreresponsibilities. Both training
and development are interrelated. A trained person willdeliver a better goods contributing
to the development.

PERFORMANCE APPRAISAL

It is process of estimating or yielding the value excellence, qualities or status of

someobject, person or thing, the purpose of performance appraisal is to determine
whataspect of performance needs to be evaluated.

Performance appraisal in HDFC bank is used for:-

Identifying employees for salary increases, promotion transfer and lay off or
termination of services.

Determining training needs of further improvement in performance.

Motivating employees by indicating their preference levels

Establishing a basis for research and research for personnel decisions in

future.Performance appraisal in all PSB ‘s is kept confidential. It is now self-
appraisalwhere a structural form is filled and any other incident or area which are
notincluded in the appraisal form may be expressed separately. Every regular appraisal or
of employees is being carried out.

A new concept of appraisal known as potential appraisal is being adopted by

HDFCwhere potential managers based on performance and leadership qualities
areidentified. They are mad members of the excellence club, which is headed by
thechairman.

PUBLIC RELATIONS IS HDFC

Knowing the importance of internal communication, the bank started House Journal.The
publication is intended to lighten the employees about the performance and progress of
the bank, to cover news about the employee’s contribution of the growthof the bank and
also to encourage the inherent talents of the staff. The bank hasadopted multi pronged
strategy to disseminate information with a view to reach larger sections of the society in
various states.

TRANSFER AND PROMOTION

Transfer is a horizontal or lateral movement of an employee form one job section,deptt.

shift, plant or position to another at the some or another place.Clerks are transferred after
every 5yrs. And officers are transferred after 3yrs.Promotion is an upward assignment of
an individual in an organization hierarchyaccompanied by increased responsibilities
enhanced status and usually with increasedincome. Bank promotion tries to line balance
between internal source of personal promotion and external sources. On one hand
between merit and ability against lengthof service on the other hand.

Promotion policy followed by HDFC Bank are:-

Promotion by merit:

promotion by merit provides incentives to employees for continuous improvement

inwork. It positively adds to the overall organizational effectiveness.

Promotion by Seniority

It is an antidote for arbitraners in promotion. It minimizes disputes on promotion.

TRADE UNIONS IN HDFC

A continuous and voluntary association of the salary or wage earners and engaged
inwhatever industry or trade, forward for safeguarding the interest of its
membersmaintaining and improving the conditions of their working lives, raising their
livesraising their status and promoting. Their interest and securing better relations
betweenthem and their employees through collective bargaining. In other words trade
union isa device which enable as group in an industry or trade to bargain with any other
classgroup or group on equal goofing.

Trade unions function on the basis of three cardinal. These principles are

I)Unity is strength

II)Equal pay for equal work for the same job.

III)Security of service

Role Of Trade Union Can Be Categorized Into

The clerical wing is known as All India Bank Employee Association

The officers wing known as All India bank officers Association.Both of them are
affiliated t communist ideology there are many other union like AIBOC (All India Bank
Officers Configuration). These are the unions atnational level.The union in HDFC is
known as AIHDFCA (All India HDFC Bank Association) affiliated to AIBOC at
National Level. Likewise AIHDFCA areindustry level officers association, and there are
several others association.

OBJECTIVE

Every study has its own objective. The aims and objectives of study are asfollows:

• To determine the extent and degree of the training programmers fulfilling theset
objective.
•To identify and analyze whether the training’s input, trainings techniques andmethods
are in line.

•To analyze the assessment of training needs.

•To analyze the learning process of trainees and suggest the effective measures.

METHODOLOGY

Research Design

Research design is a research plan which requires that what data are to be
collected,what research techniques and instruments are to be used, how a sample is to
beselected, and how information is to be collected from this sample.A research design
specifies the methods and procedures for conducting a particular study. Broadly
speaking, research design can be grouped into three categories-exploratory research,
descriptive research, and causal research.

Research Instrument

Descriptive research is used in this project report in order to understand the

evolvingcompetitive environment in the banking sector in India and to make a
comparativestudy among few banks operating in public private and foreign sector. This
is themost popular type of research technique, generally used in survey research design
andmost useful in describing the characteristics of consumers behavior. The method
usedwere following

Questionnaire method.

Direct Interaction with the users.

Data collection.

Mode of data collection

Primary Data: -

The sources of Primary data were Personal interviews.

Secondary Data: -

The sources of secondary data were the books and magazines.

Sample size planning:

Sampling is simply the process of learning about the population on the basis of sample
drown from it. It is that part of the universe which is selected for the purposeof
investigation. Sampling may be defined as a part of the whole, which representsall the
characteristics of the whole under consideration.Sample size: 100Approach:
Convenience sampling

Methodology of sampling

Subjective and judgment non-random sampling was adopted for our research work due
to large sampling area. Any type of sampling in which the sample selecteddepends on
personal discretion of the Investigator is subjective or judgment sampling.

This technique is used here because of the definite purpose in view and as such is not
used for general purposes. This sampling method has been used the choice of sample
depend exclusively on the judgment of the investigator. This methodology has been
used because of following reasons:

To know the most typical of the population with respect to the characteristic under
study.

Population is selected on the subjective basis and no probability law is applied.

Biasness can be avoided as the investigator can make out who are answering
correctively or not.

RECOMMENDATIONS

Training is an important and indispensable part of any organization and so does feelthe
employees of HDFC. But only a small percentage of them could actually spell outthe
reasons for organizing the training programmes. Benefits like updating of knowledge,
development of employee skills, coping up with the changing scenario,increased
efficiency etc. were stated by a few. A vast majority is still unaware of thereal
significance for training. Hence there is no motivation for attending the training
programmes. Thus regular reinforcement off the importance of training programmesis
required. This can be done by stating the importance of training programmes beforethe
commencement of each session. Apart from this the objective of training shouldalso be
stated by the faculty, so that the trainees realize why they are undergoing the particular
session. This objective will also keep in view better evaluation of thesessions by
participants. Motivation is the driving force, which enables a person togive his 100% to
each programme. This motivation can come in the individual only if the training
programme fulfills his individual needs. Hence the nominations should beneed based.
Need HODs or location in-charges; with the help of peer groups or teammembers of the
individual and the individual himself can do analysis. A record of each individual, deptt.,
PF number, his needs and the particular Programme, which the individual is required to
attend needs to be made at the end of each year by the HOD. This record should be sent
to the training department. Thedepartment, based on nominations given can decide for
the training programmes of the next year and hence can send information about
particular programmes to particular regions in advance. Software developed on the
above basis can make thework of HOD and training department easier. It should be
noted that the assent of theindividual employees should be taken before sending the
nominations for particular programmes. The participatory rural appraisal method
revealed that some employeeswere sent again and again for various programmes. The
other employees of the samedepartment who even if required the training were being
neglected. Some employeeshad 7-8 years or more of time ago in attending the training
programmes. The reason being that the location in charge or HOD could not spare the
other employees due towork load or the privileged few were their favorites so they
were sent again andagain. To prevent the frequent nomination of an Indian for various
programmes and
to give chance to other a system of record keeping was suggested or keeping therecords
training cards for each employee was made, where every detail of theemployee
concerning the training could be recorded and kept by Training Departmentand Head of
Department for reference check. The training card has been started. Thetraining cards
will enable each employee of particular department to undergo trainingon rotational
basis at regular intervals.It is observed that the mandate 55% of the employees need to
be trained annuallyimpedes the quality of the training programmes. Sometimes the
nominations for particular programmes do not complete the quorum, so those
programmes cannot beorganized. Hence the training department, in order to cover their
target of 55%increases the number of training programmes. Hence for furtherance of
the mission of training programme i.e. "To facilitate the process of integration of
personal ambitionsand aspirations of employees with corporate objectives through
traininginterventions". This criterion of covering 55% of employees needs to be
dissolved.This compulsion forces unnecessary nominations and programmes, which not
onlyleads to wastage of time, effort, energy and money but also is noneffective.

Training needs for Individuals

To combat the competitive environment every organisation need to have 'Stars' i.e.the
employees with high performance and high potential level. The 'Stars' do needregular
training to keep themselves updated with the latest developments in the field.The
specific training needs of individuals are as under:

Training Needs for Staff

>Staff people should be trained in interpersonal relations to maintain soundindustrial

relations. Which is the prime need for any organization’s success.

>Work planning should be taught to the staff to enable them for maximumcontribution.

>Objective setting is another where staff needs to be trained.

>Training Needs for Supervisors

>Supervisors should be trained in interpersonal relations and conflict managementas
their role is very significant and central.

>They should be trained on delegating skills.

>They should be trained on positive thinking in tne larger interest of employees andthat
of organisation.

Training Needs for Executives

>Executives must be sound in interpersonal behaviour to encourage the human-relation

philosophy in the organisation hence training should be provided.>Conflict-management
style must be taught to be executives.>Positive-leadership and Institution building
should be another area of training for executives.

Group and organisational training Needs

Organisations are composite of individuals and groups. Individual contributions addto

the group contribution, which ultimately gets converted into organisational output.The
same way training to individuals is training to group and organisation in anamalgamated
form. Hence the individual training needs may also taken as group andorganisational
training needs.
DATA ANALYSIS
&
INTERPRETATION
 DATA ANALYSIS & INTERPRETATION

1. Were you trained during the time of joining in organization ?

Benefits No. of Candidates Share in %

Experienced 10 33%
Fresher 20 67%
Total 30 100%

33%

Experienced
Fresher

67%

2.What was the training procedure ?

Benefits No. of Candidates Share in %

Job training 17 57%

Craft Training 3 10%

Induction Training 4 13%

Refresh Training 3 10%

Promotion training 3 10%

Total 30 100%

10%

10%

Job training
13%
Craft Training
Induction Training
Refresh Training
Promotion training

57%
10%
3.Were you internally trained ?

Benefits No. of Candidates Share in %

Yes 24 80%
No 6 20%
Total 30 100%

20%

Yes
No

80%
 4.What was the duration of the training ?

Benefits No of Candidates Share in %

1 day 0 0%
Less than a week 4 13%
More than a week 26 87%
Total 30 100%

13%

1 day
Less than a week
More than a week

87%

5.Have you Attended any training programme outside the organization?

Benefits No.of Share in %
Candidates
yes 15 50%
no 15 50%
Total 30 100%

50%

yes
no

50%

6. Have you Attended special training programme inside the

organization?
Benefits No.of Share in %
Candidates
yes 30 100%
no 0 0%
Total 30 100%

yes
no

100%
 7. How far the training programme help you in your job profile?

Benefits No.of Candidates Share in %

Effective 9 30%
Very effective 21 70%
Total 30 100%

30%

Effective
Very effective

70%
8.Has the training programme help you in promotion and job
satisfaction?

Benefits No.of Share in %

Candidates
yes 30 100%
no 0 0%
Total 30 100%

yes
no

100%
 SWOT ANALYSIS

LIMITATIONS
 LIMITATIONS

Though the present study aimed to achieve the above-mentioned

objectives in full earnest and accuracy, it was hampered due to certain
limitations. Some of the limitations of this study may be summarized as
follows:

 Getting accurate responses from the respondents due to their inherent

problems was difficult. They were partial, and refused to cooperate.
 Very few people are interested in knowing about insurance policies.
Locating the target respondents was very time consuming.
 Sample size was limited due to the limited period of 50 days
allocated for the survey.
 The selection of respondents to cover the various strata of the
society was tedious and time consuming.

 Time Consuming:

Contacting each and every customer utilizes most of the time.

 Lack of Knowledge:

Very few people have knowledge about Policies which are newly
launched.

 Co-ordination:
 Poor feedback from the customers

SUGGESTIONS
 SUGGESTIONS
 These should be an in SUGGESTIONS The Corporation must promote the
training for rural areas. It must provide the training of the employees to work in
remote areas and connect with them who are not in the approach of insurance, as
they are much needy.
 Increase in number of training programme for workers and employees of different
departments so that apart from improving their out put they start believing the
organization is making an effort to improve their condition on the whole.
 A regular pre –employment training has to be a part of comprehensive programme
of employee's education.
 More interaction between the managerial staff and employees to be encouraged
and each supervision to give a report on the employees under his supervision.
 The personnel department should give more consideration on the lowest employee
cadre for their social and economical development.
 The essentially like certificates for the training done to be given so that a
employee’s ego is also satisfied.
 The old employee who are master in their work should give sufficient time with
new ones so that loss factors
 Start of monetary and non – monetary regards to be given to improve better
cordial relation between the management and workers.
CONCLUSION
CONCLUSIONS

To be true and honest the training and development team of HDFC works on the basic
of triple "E" i.e. is efficiently, elaborately & effectively. Hence we can say that just 5
years old the organization into the Indian subcontinent and with the quantum of people
they arc-working with and type of turnover they are showing is amazing. Under noted
few suggestions cum conclusion can be taken as for implementation toreap furtherest
benefits.

It is found that the average age group of trainees are in their twenties or early
thirtieswhich signifies that the consumer durable industry need more of young blood
asenthusiasm is an integral part of the industry.

The maximum emphasis is given to job instruction methods where the trainee aremade
to understand their job thoroughly and the role they are going to play in performing
their job.

Lecture as well as the presentation is the major part of imparting the education and
training them.

Respondent are not the part of planning and designing of the training programmethey
do approach either to training team or the team head and in rare case they go totrainer
itself.

The entire respondent felt' that they were encouraged to come out with their ownideas
(innovation training) and concepts too.

The training objective are in keeping with needs and abilities of the trainee and it isthis
that proves to be the major reason for success of the training as whole.

The relation objective is in keeping with needs and abilities of the trainee and it isthis
that proves to be the major reason for success of the training as whole.The relation
between the training methods adopted and the training objective are to be harmonious
as it is the training method that fulfills the goal set by the trainingobjective.

To equip the trainee with new and relevant knowledge is one of the major objectivesof
the training programme and this also helps in maintaining the curiosity of thetrainee
through out the training session.

The trainee fill the feedback form and from time to time test are conducted to knowthe
gauge the effectiveness of training to employee to check their memory if theyretain
anything or not.

We think that time management is one of the thing on which LG team mustemphasis so
that there employee can be more productive as it was found during thevisit to the
corporate office people they lack in managing themselves.

Stress management training is more important for employee as it was observed that
people are all the time in tension like situation as to how to do what to do when to
do,no time and things like that which kept them tensed all time.

Last but not least behavioral training is more important as while doing the study itwas
found that people are less cooperative and outgoing to help out. Rather they feltas if
study won't do any harm to them in terms they would divulge information.

Apart from all other training even meditation training if can be done then we think
itwould add to a greater advantage to the employee as they would feel more
relaxedand light while working as sitting all the day in front of their laptop or
personalcomputer they get tired. It's good to start new thing. Let's begin it.

HDFC has very pragmatic HRD policy to develop its employees. In spite of itoutcome has
not been very encouraging. The reasons could be numerous. The resultsof the
organisation major thrust of training for staff people as compared tosupervisors and
executives and on this front it has been successful enough. Theresults of manifest the
though training is required for each of three categories of employees, yet the staff
people need lesser training when compared withSupervisors and executives. The
training is more or less fashion for senior level for itdoes not fulfil the actual needs.
Further it is imparted without taking the views of and proper counseling to prospective
trainees. Hence if the organisation wishes to havereal fruits of training it should import
training on by after proper counseling andhonoring the view of employees to be trained.
Training should follow only after thorough training need identification exercise, which is
a continuous programme.
BIBILIOGRAPHY
BIBLIOGRAPHY

References

Kotler Philip, marketing management, (Pearson education, 12th edition) Malhotra K.

Naresh, marketing research (An applied orientation), Research design, (Prentice hall of
India pvt. 5th edition)

Zeithmal V. A., Grembler D.D., Bitner M.j., and Pandit A.: Service Marketing Integrated
customer Focus across the Firm” (4th Edition) M.K. Rampal : Service Marketing

Websites

www.hdfcbank.com

www.hdfcindia.com

www.wikipedia.org

www.marketresearch.com
 QUESTIONNAIRE

Name :

Designation :

Department:

1. Were you trained during the time of joining in organization

 Experienced
 Fresher

1 what was the training procedure

 Job training
 Craft Training
 Refresh Training
 Promotion training
2 Were you internally trained
 Yes
 No

3 What was the duration of the training

 1 day
 Less than a week
 More than a week
4 How far the training programme has been effective for your job profile
 Less Effective
 Effective
 Very Effective

5 Have you Attended any training programme outside the organization:

 Yes
 No

6 Have you Attended special training programme inside the organization

 Yes
 No

7 How far the training programme help you in your job profile
 Less effective
 Effective
 Very effective

8 Has the training programme help you in promotion and job

satisfaction
 Yes
 No