HDFC Bank HDFC Bank Limited

Type

Public

BSE: 500180 Traded as NSE: HDFCBANK NYSE: HDB Industry Founded Banking, Financial services August 1994

Headquart Mumbai, ers Maharashtra, India Area served Key people Products Worldwide Aditya Puri (MD) Credit cards, consumer banking, corporate banking, finance and insurance, investment banking, mortgage

loans, private banking, private equity, wealth management[1] Revenue Profit Total assets US$ 5.585 billion (2011)[2] US$ 923 million (2011)[2] US$ 65.483 billion (2011)[2]

Employee 55,752 (2011)[2] s Website HDFCBank.com

HDFC Bank Limited (BSE: 500180, NSE: HDFCBANK, NYSE: HDB) is an Indian financial services company and was incorporated in August 1994, after the Reserve Bank of India allowed establishing private sector banks. The Bank was promoted by the Housing Development Finance Corporation, a premier housing finance company (set up in 1977) of India. HDFC Bank has 1,986 branches and over 5,471 ATMs, in 996 cities in India, and all branches of the bank are linked on an online real-time basis. As of 30 September 2008 the bank had total assets of Rs.1006.82 billion.[3] For the fiscal year 2010-11, the bank has reported net profit of 3,926.30 crore (US$746 million), up 33.1% from the previous fiscal. Total annual earnings of the bank increased by 20.37% reaching at 24,263.4 crore (US$4.61 billion) in 2010-11.[4]

It is one of the Big Four banks of India, along with: ICICI Bank and Punjab National Bank State Bank of India, Contents [hide] 1 History 1.1 Business focus 1.2 Wholesale banking services 1.3 Retail banking services 1.4 Treasury 1.5 Distribution network 2 See also 3 References 4 External links [edit] History HDFC Bank was incorporated in 1994 by Housing Development Finance Corporation Limited (HDFC), India's largest housing finance company. It was among the first companies to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. The Bank started operations as a scheduled commercial bank in January 1995 under the RBI's liberalisation policies. Times Bank Limited (owned by Bennett, Coleman & Co. / Times Group) was merged with HDFC Bank Ltd., in 2000. This was the first merger of two private banks in India.

Shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank. In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total branches to more than 1,000. The amalgamated bank emerged with a base of about Rs. 1,22,000 crore and net advances of about Rs.89,000 crore. The balance sheet size of the combined entity is more than Rs. 1,63,000 crore.[citation needed] [edit] Business focus HDFC Bank deals with three key business segments. Wholesale Banking Services, Retail Banking Services, Treasury. It has entered the banking consortia of over 50 corporates for providing working capital finance, trade services, corporate finance, and merchant banking. It is also providing sophisticated product structures in areas of foreign exchange and derivatives, money markets and debt trading and equity research.[citation needed] [edit] Wholesale banking services Blue-chip manufacturing companies in the Indian corp 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, transactional services, cash management, etc. The bank is also a leading provider of[clarification needed] for its corporate customers, mutual funds, stock exchange members and banks. [edit] Retail banking services HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (VISA Electron) and issues the Mastercard Maestro debit card as well. The Bank launched its credit card business in late

2001. By March 2009, the bank had a total card base (debit and credit cards) of over 13 million. The Bank is also one of the leading players in the merchant acquiring business with over 70,000 Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant establishments. The Bank is positioned in various net based B2C opportunities including a wide range of internet banking services for Fixed Deposits, Loans, Bill Payments, etc.With Finest of Technology and Best of Man power in Banking Industry HDFC BANK's retail services have become by and large the best in India and since the contribution to CASAi,e total number of current and savings account of more than 50% ,HDFC BANK has full potential to becomes Indias No.1 Private Sector Bank. [edit] Treasury Within this business, the bank has three main product areas - Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. These services 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. [edit] Distribution network

An HDFC Bank Branch HDFC Bank is headquartered in Mumbai and has an nationwide network of 2000 branches spread in 996 towns and cities across India.The Bank also has 5,998 networked ATMs. The Housing Development Finance Corporation Limited (HDFC) wasamongst the first to receive an 'in principle' approval from theReserve 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 'HDFCBank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January1995.HDFC is India's premier housing finance company and enjoys animpeccable track record in India as well as in international markets.Since its inception in 1977, the Corporation has maintained aconsistent and healthy growth in its operations to remain the marketleader in mortgages. Its outstanding loan portfolio covers well over amillion dwelling units. HDFC has developed significant expertise inretail mortgage loans to different market segments and also has alarge corporate client base for its housing related credit facilities.With its experience in the financial markets, a strong market reputation, large shareholder base and unique consumer franchise,HDFC was ideally positioned to promote a bank in the Indian environment. HDFC Ltd has the objective to enhance residential housing stock and promote homeownership. Their

offerings range from hassle-free home loans and deposit products, to property related services and a training facility. They also offer specialized financialservices to the customer base through partnerships with some of the best financialinstitutions worldwide.HDFC Bank is a young and dynamic bank, with a youthful and enthusiastic teamdetermined to accomplish the vision of becoming a world-class Indian bank.Our business philosophy is based on four core values - Customer Focus, OperationalExcellence, Product Leadership and People. We believe that the ultimate identity andsuccess of our bank will reside in the exceptional quality of our people and their extraordinary efforts. For this reason, we are committed to hiring, developing, motivatingand retaining the best people in the industry.HDFC Bank specializes in the provision of banking and other financial services tocorporate and institutional clients. The companys services include commercial,transactional and electronic banking products. It also provides treasury services, retail banking and capital markets infrastructure. The company primarily operates in India.HDFC Bank is headquartered in Mumbai, India and employs about 14,900 people. Thecompany recorded revenues of INR124,928 million (approximately $3,131.9 million)during the fiscal year ended March 2008, an increase of 51.9% over 2007. The net profitwas INR15901.8 million (approximately $398.7 million) in fiscal year 2008, an increaseof 39.3% over 2007. Mission and Business Strategy Our mission is to be "a World Class Indian Bank", benchmarking ourselves againstinternational standards and best practices in terms of product offerings,

technology,service levels, risk management and audit & compliance. The objective is to build soundcustomer franchises across distinct businesses so as to be a preferred provider of bankingservices for target retail and wholesale customer segments, and to achieve a healthygrowth in profitability, consistent with the Bank's risk appetite. We are committed to dothis while ensuring the highest levels of ethical standards, professional integrity,corporate governance and regulatory compliance. HDFCs main goals are to :The primary objective of HDFC is to enhance residential housing stock and to promotehome ownership.To acquire by purchase, lease, exchange, hire or otherwise lands & property or anyinterest in the same in India.To advance money to any person/ persons, company or corporation, society or associationeither at interest without, and or with or without any security and in particular to advancemoney to shareholders of the company or to oth4r persons to enable the person to erect,or purchase, or enlarge, or repair any house or building or any part or portions thereof or to purchase any freehold or leasehold or any lands or estate or property in India upon theterms and conditions as laid by the company.To develop & turn to account any land acquired by the company or in which the companyis interested, and in particular by laying out and preparing the same for building purposes,constructing, altering pulling down, decorating, maintaining; furnishing, fitting up andimproving buildings, and by planting, paving draining, farming, cultivating, letting on building lease or building agreement, and by advancing

money and entering intocontracts and agreements of all kinds with builders, tenants and others. Profile HDFC Bank was incorporated in August 1994, and, currently has an nationwide network of 1412 Branches and 3295 ATM's in528 Indian towns and cities.HDFC Bank in India operates on the following basic segments:Personal Banking Encompasses all financial dealings between a commercial bank andan individual.Wholesale Banking Deals with all sorts of financial dealings with Corporates, mediumand small Enterprises,Financial Institutions and Trusts as well as the Government Sector. NRI Banking Consists of personal banking relations with the Non Resident Indians(NRIs).HDFC Bank has been recognized, rated and awarded by a number of organizations (onsuccessfully operating in India for over a decade). PRODUCT SCOPE: HDFC Bank offers a bunch of products and services to meet the every need of the people.The company cares for both, individuals as well as corporate and small and mediumenterprises. For individuals, the company has a range accounts, investment, and pensionscheme, different types of loans and cards that assist the customers. The customers canchoose the suitable one from a range of products which will suit their life-stage andneeds. For organizations the company has a host of customized solutions that range fromFunded services, Non-funded services, Value addition services, Mutual fund etc. Theseaffordable plans apart from providing long term value to the employees help in enhancinggoodwill of the company.The products

of the company are categorized into various sections which are as follows: Accounts and deposits. Loans. Investments and Insurance. Forex and payment services. Cards. Customer center. INTERNAL FACTOR EVALUATION (IFE) Internal Factor Evaluation (IFE) matrix is a strategic management tool for auditing or evaluating major strengths and weaknesses in functional areas of a business. IFE matrixalso provides a basis for identifying and evaluating relationships among those areas. TheInternal Factor Evaluation matrix or short IFE matrix is used in strategy formulation. STRENGTHS 1. HDFC is the strongest and most venerable play on Indian mortgages over the longterm. The management of the bank is termed to be one of the best in the country.2. HDFC has differentiated itself from its peers with its diversified network andrevamped distribution strategy3. HDFC has been highly proactive in passing on the cost and benefit to customers.4. Besides the core business, HDFCs insurance, AMC, banking, BPO, and real estate private equity businesses are also growing at a rapid pace and the estimated value of itsinvestments/subsidiaries explains ~30% of HDFCs market capitalization.5. High degree of customer satisfaction.6. Lower response time with efficient and effective service.7. Dedicated workforce aiming at making a long-term career in the field.

8. Products have required accreditations.9. Superior customer service vs. competitors10. Large share of lowcost deposits, higher net interest margin11. Better quality of assets, NPA of 0.4 per cent12. Free float available, FIIs can buy its stock 13. Higher profitability WEAKNESSES 1. High dependence on individual loans.2. Major stake held by American financial groups which are under stress due to economicslowdown.3 .Customer service staff needs training. 4. Processes and systems, etc need to be better managed5. Management cover insufficient. 6. Sectoral growth is constrained by low unemployment levels and competition for staff 7. Marginal international presence8. No next line of leadership9. Not very aggressive in M&A space, growing only organically10. Possible takeover target EXTERNAL FACTOR EVALUATION External Factor Evaluation (EFE) matrix method is a strategic-management tool oftenused for assessment of current business conditions. The EFE matrix is a good tool tovisualize and prioritize the opportunities and threats that a business is facing. OPPURTUNITIES 1. Fast growing insurance business in the country.2. Untapped rural markets.3. Could extend to overseas broadly4. Fast-track career development opportunities on an industry-wide basis.5. An applied research centre to create opportunities for developing techniques to provideadded-value services. . Unique partnership to create job opportunities for IFBIs PGDBO students7. HDFC bank automates business

processes with Staffware; HDFC Bank anticipatesmajor cost savings whilst maintaining high levels of customer service thanks to newenterprise software agreement.8. HDFC Bank plans to set up a non-banking finance company (NBFC) to undertakefund-based activities . 9.In recent times, India has witnessed entry of many international banks like CITIBank, YES Bank etc which posses an external entrant threat to HDFCBank as thisBanks are known for their art of working and maintain high standards of customer service.10. After showing a significant growth overall, India is able to attractmany international financial & banking institutes, which are knownfor their state of art working and keeping low operation costs . THREATS v1. Loss of market share to commercial banks and HFCs2. Higher than expected increase in funding cost3. Risk of fraud and NPA accretion due to increase in interest rates and fall in property prices is inherent to the mortgage business4. Lack of infrastructure in rural areas could constrain investment.5. High volume/low cost market is intensely competitive . 6. Very high competition prevailing in the industry7. Extension overseas holds a lot of risk!8. Threat from credit card collections dept.9. Varying and In-Convenient ECS dates.10. Unlike Government Banks, an account needs a minimum balance of Rs.10,000