HDFC BANK INTRODUCTION

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 liberalization 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. HDFC Bank Limited (BSE: 500180, NSE: HDFCBANK, NYSE: HDB) is an Indian financial services company that was incorporated in August 1994. HDFC Bank is the fifth or sixth largest bank in India by assets and the second largest bank by market capitalization as of February 24, 2012. 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. For the fiscal year 2010-11, the bank has reported net profit of 3,926.30 crore (US$783.3 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$4.84 billion) in 2010-11.] HDFC Bank is one of the Big

Four banks of India, along with: State Bank of India, ICICI Bank and Punjab National Bank.

MISSION

HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services for target retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent with the bank's risk appetite. The bank is committed to maintain the highest level of ethical standards, professional integrity, corporate governance and regulatory compliance. HDFC Bank's business philosophy is based on four core values - Operational Excellence, Customer Focus, Product Leadership and People.

HDFC Banks mission is to be a world class Indian bank by adopting a single minded focus on service excellence and product quality. The Bank has adopted industry leading best practices in establishing a set of operating principles which govern how risks of a significant business disruption are mitigated to protect the Banks customers, employees and stakeholders. The Bank has a robust and well defined business continuity program which comprises of policies and procedures with clearly defined roles, responsibilities and ownership for Crisis Management, Emergency Response, Business recovery and IT Disaster Recovery Planning. The Banks BCP steering committee, represented by the senior executive management of the Bank, approves and oversees the annual BCP Strategy and road map. Regular drills and tests are conducted to cover all aspects of the Business Continuity Plan. Plans are reviewed and maintained regularly to incorporate any changes to environment, people, process and technology. The Banks Business Continuity Office continuously works towards strengthening the business

continuity preparedness of the Bank. The Bank's Business continuity program is developed to manage the impact of significant disruptions and will endeavor to resume business and operations to an acceptable level within a reasonable time in the event of a disaster. While the recovery time objectives (RTO) have been defined and documented in the plans, various external factors beyond our control could affect the actual recovery time. The Banks business continuity plan is in line with the guidelines issued by regulatory bodies and is subject to regular internal, external and regulatory reviews.

BOARD OF DIRECTORS

Managing Director ExecutiveDirector Executive Director Chairman

Aditya Puri Paresh Sukhthankar Harish Engineer Jagdish Kapur

Equities and Private Banking and NRI Abhay Aima Business Information Technology and Legal Treasury Merchant Services Audit and Compliance Anil Jaggia Ashish Parthasarthy Bharat Shah G Subramanyam

Credit and Market Risk

Kaizad Maneck Bharucha

Human Resources Administration and Mandeep Maitra Infrastructure Branch Banking Assets and Credit Cards Navin Puri Pralay Mondal

Retail Liabilities,Marketing and Direct Rahul N Bhagat Banking Channels Operations Finance Rajan Ananthanarayan Shashi Jagdishan

Treasury

Sudhir Joshi

MANAGEMENT
Mr. C.M. Vasudev has been appointed as the Chairman of the Bank with effect from 6th July 2010. Mr. Vasudev has been a Director of the Bank since October 2006. A retired IAS officer, Mr. Vasudev has had an illustrious career in the civil services and has held several key positions in India and overseas, including Finance Secretary, Government of India, Executive Director, World Bank and Government nominee on the Boards of many companies in the financial sector.

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

The Bank's Board of Directors is composed of eminent individuals with a wealth of experience in public policy, administration, industry and commercial banking. Senior executives representing HDFC are also on the Board.

Senior banking professionals with substantial experience in India and abroad head various businesses and functions and report to the Managing Director. Given the professional expertise of the management team and the overall focus on recruiting and retaining the best talent in the industry, the bank believes that its people are a significant competitive strength.

REGISTERED OFFICE HDFC BANK HOUSE Senapati Bapat Mart, Lower Parel, Mumbai40013 Tel. No. 66521000 Fax No.24960737 Website : www. hdfcbank.com

BUSINESS PHILOSOPHY
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 corporate 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. HDFC bank policy is to charge maximum from customers while providing the same or less service as compared to other banks. Minimum balance required for saving account is Rs. 10,000.00 while there are banks in the market like IDBI which provide zero balance account with far better features from HDFC saving account. Servers on Saturdays may be down, there is no toll-free number from Delhi-NCR. A demand draft costs Rs. 75. If you get bank statement from other branch of HDFC, it'll cost you Rs. 110 and chances are you won't be informed about these charges. And if you wish to close your saving account before a certain period (at present six months), a certain amount of money will be deducted from your account. Again its very likely that you won't be informed about such charges during opening of your account. 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 for its corporate customers, mutual funds, stock exchange members and banks.

Retail banking services HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA 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 CASA i,e total number of current and savings account of more than 50% ,HDFC BANK has full potential to become Indias No.1 Private Sector Bank. HDFC Bank website including hdfcbank.com and hdfcsec.com are not available 24X7. This has become a habit of HDFC Bank. Customers of the HDFC Bank are requested to check the website availability 24 X 7 and if available can do the transaction. If the website is not available they are asked to visit their home branch. 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.

PRODUCTS & SERVICES

Travellers Cheques : Travellers Cheques are a safe and easy way to protect your money when you travel. You can encash them only when you need to, and only against your signature, unlike cash which can be stolen and misused by anybody, immediately. Credit Card: Credit Card can be used for all your requirements, be it shopping, eating out, holidaying, fuelling up your vehicle, railway ticket reservations - just about any financial requirement, planned. Home loan: Home loans for individual to purchase or construct houses. Personal Loans: The procedure of personal loan is simple, documentation is minimal and approval is quick. Foreign Currency Cash: Foreign Currency Cash is a convenient way of meeting personal expenses along your journey, paying for taxis / internal travel, food expenses etc. Foreign Currency Demand Drafts: Demand Drafts are issued in seven currencies like United States Dollars (USD), Great Britain Pounds (GBP), EURO, Japanese Yen (JPY), Australian Dollars (AUD), Canadian dollars (CAD) and New Zealand Dollars (NZD). Foreign Currency Cheque Deposits: We can directly deposit our foreign currency cheques in to our saving or current account. Remittances: HDFC Bank offers the remittance facilities by which we can send and receive money to anyone. They are categorized depending on location and the urgency with which we want the money transferred.

 Trade Service: HDFC Bank have people with high level of expertise and experience in trade services to provide services to suit specific requirements and structure solutions for business needs. HDFC Bank have 500 branches for trade services. Mutual funds: Mutual funds are funds that pool the money of several investors to invest in equity or debt markets. Insurance: HDFC Bank offers a world of choice in insurance. Like children future plans, retirements plans, standard life, etc.

BUSINESS MODEL
India is a diverse country with specific local requirements. It has a different ethos and different risk profile than other regions. Superimposing international business models that do not always reflect realities on the ground does not often work in India, he says. Also, quick decisions and getting clearances for new products is critical. Of course, the rise in Indias prominence has led to a change in attitudes in recent years, but these issues persist, states Mr Aima, who was with Citi for several years before joining HDFC Bank in 1995. Foreign players enjoy two critical advantages over domestic banks, namely global presence and international processes. However, he believes domestic banks like HDFC Bank are steadily closing the gap.Over the past two years HDFC Bank has taken its first steps in the global banking arena by setting up branches in Bahrain and Hong Kong. The main focus of these international offices is to service non-resident Indian (NRIs), a key target segment. Mr Aima, who is also in-charge of non-resident Indian and international consumer banking at HDFC Bank, estimates NRIs account for a quarter of the banks wealth management portfolio. We have several representative offices across the world, but a number of international products cannot be booked in

these offices. We realized that in order to offer international products in our product portfolio, we needed to have a branch presence in our key markets. HDFC Bank is not in a hurry to grow its international presence, says Mr Aima. Some banks that have tried to grow their global footprint at a rapid pace have suffered. Our plan is to expand slowly. First we looked as the Middle East, and now its South-East Asia. Setting up international branches is not without its challenges. The branch needs to run like a complete bank with the right processes and regulatory compliances in place, he says. With the high level of investment required, often the economies of scale dont work out. Additionally, in a new market, it takes time to establish the brand.

ORGANIZATIONAL STRUCTURE
Aditya Puri-CEO CE

CM Vasudev-Chairman of the Board

Ashim Samanta- Director

Bobby Parikh- Director

Anami Roy- Director

Harish Engineer- Executive Director

P. Sukhtankar- Executive Director

Sanjay Dongre- Executive VP/Secretary

AWARDS & MILESTONES

YEAR 2012: Euromoney India Poll 2012 - Best Private Bank in the Super Affluent Category

Best Performing Bank - Private by UTI MF & CNBC TV18 Financial Advisor Awards 2011

Best Bancassurance Provider by THE ASIAN BANKER Excellence in Retail Financial Services International Awards 2012 for year 2011.

YEAR 2011: Euromoney India Poll 2011 - Best Private Bank in the Super Affluent Category

YEAR 2010: The Banker & Professional Wealth Management(PWM), Financial Times

Publications, Global Private Banking Awards 2010 - Best Private Bank in India 2010

UTI MF & CNBC TV18 Financial Advisor Awards 2010 - Best Performing National Financial Advisor Bank

Wealth Forum Advisor Awards 2010

Highest Net Sales - Income Funds Highest increase in AUM (Equity + Hybrids) Highest Live SIPs Highest Live Investor Folios Highest AUM ( Equity + Hybrids)

Euromoney Private Banking and Wealth Management Poll 2010

Best Local Bank in India (2nd year in a row) Best Private Banking Services overall (moved up from No. 2 last year)

Avaya Global Connect 2010 - Customer Responsiveness Award - Banking and Financial Services category

NDTV Business Leadership Awards 2010 - Best Private Sector Bank

MIS Asia IT Excellence Award 2010 - Best Bottom-Line I.T. Category

Dun & Bradstreet Banking Awards 2010

Overall Best Bank Best Private Sector Bank Best Private Sector Bank in SME Financing

Institutional Investor Magazine Poll - HDFC Bank MD, Mr. Aditya Puri among "Asian Captains of Finance 2010"

ACI Excellence Awards 2010 - Highly Commended - Asia Pacific HDFC Bank

Celent's 2010 Banking Innovation Award - Model Bank Award

Financial Insights Innovation Awards 2010 - Innovation in Branch Operations Server Consolidated Project

Global Finance Award - Best Trade Finance Provider in India for 2010

MILESTONES
2011-12 Nov 30, 2011 Solitaire range of womens Credit Cards launched Nov 26, 2011 HDFC Bank and Vodafone India launch m-paisa a product for financial inclusion Aug 4, 2011 - Leh Branch launched Aug 2, 2011 Tax payment facility through ATM launched Aug 2, 2011 Bouquet of premium Travel Credit Cards launched Jul 12, 2011 - INFINIA Credit Card launched Apr 27, 2011 - Our 2000th Branch inaugurated at Mangaliya Sadak near Indore

2010-11 Feb 7, 2011 MOU signed with Indian Army for total Salary Solutions Dec 8, 2010 - Our 5000th ATM launched at Swami Narayan Chowk, Rajkot Jul 29, 2010 - Our Intensive Rural Campaign launched with 1st Mega Loan Mahotsav in Pimpalgaon in Maharashtra May 13, 2010 - First Bank to retail silver bars in India

2009-10 Feb 21, 2010 - Our 4000th ATM launched at Vijay Mahal in Mangalore Dec 21, 2009: Kanjur Marg Office inaugurated by Mr. Deepak Parekh, HDFC Chairman, and Mr. Aditya Puri, HDFC Bank MD

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 Fixed Deposit programme has been rated 'CARE AAA (FD)' [Triple A] by CARE, which represents instruments considered to be "of the best quality, carrying negligible investment 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 the outlook 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 by CARE and Fitch Ratings India Private Limited and its Tier I perpetual Bonds and Upper Tier II Bonds rated by CARE and CRISIL Ltd. CARE has assigned the rating of "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 and Upper Tier II bond issues. CRISIL has assigned the rating "AAA / Stable" for the Bank's Perpetual Debt programme and Upper Tier II Bond issue. In each of the cases referred to above, the ratings awarded were the highest assigned by the rating agency for those instruments. Corporate Governance Rating

The bank was one of the first four companies, which subjected itself to a Corporate Governance and Value Creation (GVC) rating by the rating agency, The Credit Rating Information Services of India Limited (CRISIL). The rating provides an independent assessment of an entity's current performance and an expectation on its "balanced value creation and corporate governance practices" in future. The bank was assigned a 'CRISIL GVC Level 1' rating in January 2007 which indicates that the bank's capability

with respect to wealth creation for all its stakeholders while adopting sound corporate governance practices is the highest.

AMALGAMATIION & MERGER

The combined entity would have a nationwide network of 116 branches; a strong deposit base of around Rs.1,22,000 crores and net advances of around Rs.89,000 crores. The balance sheet size of the combined entity would be over Rs.1,63,000 crores. Merger with Centurion Bank of Punjab Limited(CBoP) On March 27, 2008, the shareholders of the Bank accorded their consent to a scheme of amalgamation of Centurion Bank of Punjab Limited with HDFC Bank Limited. The shareholders of the Bank approved the issuance of one equity share of Rs.10/- each of HDFC Bank Limited for every 29 equity shares of Re. 1/- each held in Centurion Bank of Punjab Limited. This is subject to receipt of approvals from the Reserve Bank of India, stock exchanges and Other requisite statutory and regulatory authorities. The shareholders Also accorded their consent to issue equity shares and/or warrants convertible into equity shares at the rate of Rs.1,530.13 each to HDFC Limited and/or other promoter group companies on preferential basis, subject to final regulatory approvals in this regard. The Shareholders of the Bank have also approved an increase in the authorized capital from Rs.450 crores to Rs.550 crores.TIMES BANK AMALGAMATION In a milestone transaction in the Indian banking industry, Times Bank Limited (another new private sector bank promoted by Bennett, Coleman & Co./Times Group) was merged with HDFC Bank Ltd., effective February 26, 2000. As per the scheme of amalgamation approved by the shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank. The acquisition added significant value to HDFC Bank in terms of increased branch network, expanded geographic reach, enhanced customer base, skilled manpower and the opportunity to cross-sell and leverage alternative delivery channels.

Recent
18-APR-12

Developments

HDFC Bank, one of the leading private sector banks in Inda, has posted a net profit of Rs 14.53 billion for the quarter ended March 31, 2012 as compared to Rs 11.14 billion for the quarter ended March 31, 2011, representing an increase of 30.43%.

06-MAR-12 HDFC Bank, the second largest private bank in the country, on Tuesday announced the launch of `Bharosa Gold Loan`, a product tailor-made for the rural customer. This is an important step in the Bank

19-JAN-12 HDFC Bank has posted a net profit of Rs 14.29 billion for the quarter ended December 31, 2011 as compared to Rs 10.87 billion for the quarter ended December 31, 2010, 2010, representing an increase of 31.46%.

20-OCT-11 HDFC Bank, one of the largest private sector banks, has posted growth of 31.5% in net profit to Rs 11.99 billion for the quarter ended Sept. 30, 2011 as against Rs 9.12 billion in the corresponding quarter a year ago. Total income has increased by 37.41% at Rs 79.29 billion for second quarter as against Rs 57.71 billion for same quarter a year ago.

19-OCT-11 HDFC Bank, one of the largest private sector banks, has posted growth of 31.49% in net profit to Rs 12 billion for the quarter ended Sept. 30, 2011 as against Rs 9.12 billion in the corresponding quarter a year ago. Total income has increased by 37.41% at Rs 79.29 billion for second quarter as against Rs 57.71 billion for same quarter a year ago.

07-OCT-11 The HDFC Chairman, Deepak Parekh, has expressed disagreement over the present regulatory thinking on allowing complete waiver of all prepayment charges.

25-AUG-11 Credit rating agency, Fitch Ratings has affirmed India-based HDFC Bank (HBL) National Long-Term (LT) Rating at `Fitch AAA(ind)` with a Stable Outlook, and National Short-Term (ST) Rating at `Fitch A1+(ind)`. HBL`s lower tier 2 debt has also been affirmed at `Fitch AAA (ind)` based on Fitch`s criteria. A full list of rating actions is given at the end of this commentary.

08-JUL-11 Housing Development Finance Corporation (HDFC) Bank has posted a net profit of Rs 8.45 billion for the quarter ended June 30, 2011 as compared to Rs 6.95 billion for the quarter ended June 30, 2010, reflecting increase of 21.58%.

Capital structure

As on 30th June, 2010 the authorized share capital of the Bank is Rs. 550 crore. The paid-up capital as on said date is Rs. 459,69,07,030/- (45,96,90,703 equity shares of Rs. 10/- each). The HDFC Group holds 23.63 % of the Bank's equity and about 17.05 % of the equity is held by the ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue). 27.45% of the equity is held by Foreign Institutional Investors (FIIs) and the Bank has about 4,33,078 shareholders.

The shares are listed on the Bombay Stock Exchange Limited and The National Stock Exchange of India Limited. The Bank's American Depository Shares (ADS) are listed on the New York Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's Global Depository Receipts (GDRs) are listed on Luxembourg Stock Exchange under ISIN No US40415F2002. On May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC Bank was formally approved by Reserve Bank of India to complete the statutory and regulatory

approval process. As per the scheme of amalgamation, shareholders of CBoP received 1 share of HDFC Bank for every 29 shares of CBoP. The merged entity will have a strong deposit base of around Rs. 1,22,000 crore and net advances of around Rs. 89,000 crore. The balance sheet size of the combined entity would be over Rs. 1,63,000 crore. The amalgamation added significant value to HDFC Bank in terms of increased branch network, geographic reach, and customer base, and a bigger pool of skilled manpower. In a milestone transaction in the Indian banking industry, Times Bank Limited (another new private sector bank promoted by Bennett, Coleman & Co. / Times Group) was merged with HDFC Bank Ltd., effective February 26, 2000. This was the first merger of two private banks in the New Generation Private Sector Banks. As per the scheme of amalgamation approved by the shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank.

DISTRIBUTION NETWORK
HDFC Bank is headquartered in Mumbai and has a as of March 31, 2012, the Banks distribution network was at 2,544 branches and 8,913 ATMs in 1,399 cities as against 1,986 branches and 5,471 ATMs in 996 cities as of March 31, 2011. HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of 2,544 branches spread in 1,399 cities across India. All branches are linked on an online realtime basis. Customers in over 500 locations are also serviced through Telephone Banking. The Bank's expansion plans take into account the need to have a presence in all major industrial and commercial 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 the centers where the NSE/BSE has a strong and member

active base.

The Bank also has 8,913 networked ATMs across these cities. Moreover, HDFC Bank's ATM network can be accessed by all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.

GLOBAL NETWORK HDFC Bank, India's second largest private sector bank is planning to strengthen its global presence. The bank is looking at countries such as Canada and Singapore to expand its branch networks abroad. The bank has already applied for licenses in Bahrain and Hong Kong and currently having a representative office in Dubai. To fund the global expansion, HDFC Bank also plans to raise $1 billion (about Rs4,000 crore) from overseas markets. The bank would raise fund through different instruments under the medium-term notes (MTN) program and the first portion of the fund would be raised in the next 3-4 months. HDFC Bank today inked an agreement with US-headquartered lender Wells Fargo to offer remittance services between the two countries.

"The services will be free of cost to begin with," Wells Fargo global remittance services executive vice-president Daniel Ayala told reporters here, after signing a non-exclusive pact with the city-based HDFC Bank. In 2011, India became the largest recipient of remittances with the volume touching around USD 55 billion, driven by a massive drop in the rupee against the US currency.

After the Middle East, the US with around 35 per cent of the volume share is the largest point of origin for remittances into the India, Ayala said.

HDFC Bank is one of the preferred remittance channels for NRIs in the Gulf.

COMPETITORS
In private sector the basic competition between HDFC , ICICI., Axis Bank, HSBC, Citi bank . Housing Development Finance Corporation Bank or the HDFC Bank doesnt

have a very old history associated with it but still the bank has gained enough popularity to be counted among the top 4 banks in India.Its main competitors are State Bank of India, ICICI Bank and Axis Bank. HDFC got established after the approval of RBI for

Name

Last Price

Market (Rs. cr.)

Cap. Net Income 120,379.04

Interest Net Profit

Total Assets

HDFC Bank

512.65

19,928.21

3,926.39

277,352.61

private Banks to be established in the country. Recently HDFC has also taken over the Centurion Bank of India under its network. This amalgamation has made HDFC even more powerful and has increased the worth of its assets and the number of its branches, ATMs and customers. With 3.15 trillion rupees in assets ($61.8 billion), the bank has been adding almost 2 million customers a year, according to Puri, and has more than doubled lending to consumers since 2008. HDFC Banks bad-loan ratio was 0.2 percent in the quarter ended in September, a fourth of ICICI Banks and one-tenth that of State Bank. The bank doesnt feel left behind in the good times because it does so much better in the bad times. Higher borrowing costs and a slowdown in economic growth as Indias central bank ratchets up rates to curb inflation could lead to an increase in bad loans. And HDFC Bank may face more competition in consumer lending: After a seven-year hiatus, Indias central bank may issue new banking licenses. Meanwhile, Standard Chartered, HSBC (HBC), and Citigroup, the foreign banks with the biggest presence in India, continue to add branches as they target middle- and high-income consumers. Foreign banks have a combined market share of only 4.9 percent of lending and 4.4 percent of deposits, according to data from the Reserve Bank of India. HSBC, the second-largest foreign bank in India by number of branches, has had more than five years of losses in its local retail-lending business in the country and is now operating at virtually break-even. Following is the financial comparison of banks in India:

961.15 Axis Bank Kotak Mahindra IndusInd Bank Yes Bank Federal Bank ING Vysya Bank Karur Vysya JK Bank South Ind Bk StanChart IDR City Union Bank Karnataka Bank DCB Lakshmi Vilas Dhanlaxmi Bank Goldman BEES 533.55 306.65 320.50 407.25 345.40 390.90 851.15 22.80 95.00 48.65 83.35 40.65 79.70 55.90 2,729.60

39,773.71

21,994.65

4,242.21

242,713.37

39,524.06 14,352.46 11,335.49 6,965.91 5,186.76 4,189.68 4,126.19 2,584.95 2,280.00 1,985.95 1,569.49 978.32 777.28 475.91 280.06

6,180.24 5,359.20 6,307.35 4,052.03 3,856.81 2,217.69 3,713.13 3,583.43 1,218.41 2,370.84 536.26 1,064.84 906.42 -

1,085.05 802.61 976.99 587.08 456.30 415.59 615.20 401.65 215.05 204.61 21.43 101.14 26.06 -

50,850.66 45,635.85 59,007.00 51,456.37 39,013.98 28,224.84 50,508.15 32,820.21 1,945,725.80 14,591.52 31,693.01 8,676.84 13,301.19 14,268.16 -

SWOT ANALYSIS

SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. The technique is credited to Albert Humphrey, who led a convention at Stanford University in the 1960s and 1970s using data from Fortune 500 companies. STRENGTHS HDFC is the strongest and most venerable play on Indian mortgages over the long term. The management of the bank is termed to be one of the best in the country. HDFC has differentiated itself from its peers with its diversified network and revamped distribution strategy Superior customer service vs. competitors Large share of low-cost deposits, higher net interest margin Better quality of assets, NPA of 0.4 per cent

WEAKNESS High dependence on individual loans. Major stake held by American financial groups which are under stress due to economic slowdown. Customer service staff needs training. Management cover insufficient.

Sectoral growth is constrained by low unemployment levels and competition for staff Marginal international presence No next line of leadership

OPPURTUNITIES Fast growing insurance business in the country. Untapped rural markets. Could extend to overseas broadly Fast-track career development opportunities on an industry-wide basis. An applied research centre to create opportunities for developing techniques to provide added-value services.

THREATS Loss of market share to commercial banks and HFCs Higher than expected increase in funding cost Risk of fraud and NPA accretion due to increase in interest rates and fall in property prices is inherent to the mortgage business Lack of infrastructure in rural areas could constrain investment. High volume/low cost market is intensely competitive Very high competition prevailing in the industry Extension overseas holds a lot of risk! Threat from credit card collections dept.