A Project Report On HDFC Bank

A PROJECT REPORT ON HDF BANK
A PROJECT REPORT ON HDFC BANK IN LOANS DEPARTMENT Bachelor of banking & insurance Semester 5 Academic Year 2012-2013
Submitted By VIJAY SINGH Roll no: 52 Project Guide Prof. VANEETA RANEY
Sydenham College of Commerce & Economics

B Road, Churchgate, Mumbai - 400 020
T.Y.BBI SYDENHAM COLLEGE OF COMMERCE AND ECONOMICS Page 1
SYDENHAM COLLEGE OF COMMERCE AND ECONOMICS

DECLARATION I Mst. VIJAY SINGH the student of BACHELOR OF BANKING & INSURANCE Semester V (2012-13) hereby declare that I have completed the project on. The information submitted is true and original to the best of my knowledge.
Signature of Student Name of Student: VIJAY SINGH Roll No.:-52
T.Y.BBI SYDENHAM COLLEGE OF COMMERCE AND ECONOMICS
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Experience Is the Best Teacher
I would like to thank wholeheartedly, My Project Guide Prof VANEETA RANEY . for helping me continuously and for giving me moral support for preparing this project. It would be rather unfair on my part for not thanking my college, SYDENHAM COLLEGE OF COMMERCE & ECONOMICS. Principal Dr. (Mrs.) M.V Kalgalkar & Prof. Vaneeta Raney for having shown their continuous faith in me.
I am very grateful and would like to thank my Family and other Professors of my college for having helped me day in and day out, I am also thankful to my Friends for their continuous help in making the project.
VIJAY SINGH
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CONTENTS
ORIGIN OF BANK INDIAN MANAGEMENT SCENARIO INTRODUTION OF BANKING FUNCTION OF BANK ROLE OF BANK IN ECONOMY BANKS ESSENTIALLY PERFORM TYPES OF BANKS ROLE OF BANKING IN BUSINESS ROLE OF BANKING IN MACRO ECONOMICS LIST OF TOP 10 BANK IN INDIA INTRODUCTION OF HDFC BANK HISTORY OF HDFC RETAIL BANKING SERVICES LOAN IN HDFC BANK CONCUSION RECOMMENDATIONS BIBLIO
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ORIGIN OF BANKING:
The word 'Bank' is said to have been derived from the words Bancus or Banque or Bank. This history of banking is traced to as early as 2000 B.C. The priests in Greece used to keep money and valuables of the people in temples. These priests thus acted as financial agents. The origin of banking is also traced to early goldsmiths. They used to keep strong safes for storing the money and valuables of the people. The persons who had surplus money found it safe and convenient of deposit their valuables with them. The first stage in the development of modern banking, thus, was the accepting of deposits of cash from those persons who had surplus money with them.
The goldsmiths used to issue receipts for the money deposited with them. These receipts began to pass for the settlement of transactions as people had confidence in the integrity and solvency of goldsmiths. When it was found that these receipts became fully acceptable for the payment of debts; then the receipts were drawn in such a way that it entitled any holder to claim the specified amount of money from goldsmiths. These receipts were the earlier bank notes. The second stage in the development of banking thus was the issue of bank notes.
The goldsmiths soon discovered that all the people who had deposited money with them do not come to withdraw their funds in cash. They found that only a few persons presented the receipts for encashment during a given period of time. They also found that most of the money deposited with them was lying idle. At the same time; they found that they were being constantly requested for loan on good security. They thought it profitable to lend at least some of the money deposited
with them to the needy persons. This proved quite a profitable business for the_ goldsmiths. They instead of charging safe keeping charges from the depositors began to give them interest on the money deposited with them. This was the third stage in the development of banking.
DEFINITION OF A BANK: The term 'bank' is being used for a long time, yet it has no precise definition. The basic reason is that the commercial banks perform not just one but many types of functions. The term bank has been defined differently by different authors. Some are as follows:
According to Crowther: "Bank is a dealer in debtshis own and of other people."
According to G.W. Gilbert, "A banker is a dealer in capital or more properly a dealer in money. He is an intermediate party between the borrower and the lender. He borrows from one party and lends to another."
According to Banking Companies Ordinance 1962: "Banker means person transacting the business of accepting for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise and withdraw able by cheque, draft, and order or otherwise and
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includes any Post Office Savings Bank."
INDIAN MANAGEMENT SCENARIO
Current Indian Banking System Scenario Two points for what was happening in banking and investment sector in the last 5 years.
1. Increased consumerism: If we look at the consumption pattern in last 5 years, people were moving from being savers to consumers, i.e., more emphasis on benefits gained today rather than gains received through savings in future, this changing attitude is one of the reasons for higher growth in lending compared to deposits. 2. Alternatives and risks: People were looking for more alternatives like mutual funds, different insurance schemes, stock market, etc. People were moving to these products with higher return expectations. These instruments also have higher risk and increased income level people who deposit high amounts of money into banks were ready to take these high-risk alternatives.
But now the situation will be slightly better for banking system in India because investors are losing a lot of wealth in stock markets and mutual funds. People will realize the importance of safer investment vehicle and will start diversifying their portfolio with increased exposure to safer instruments like bank deposits.
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The banks in India generate their funds from two types of sources:
Long-Term Sources: 1. Tier one and Tier two Capital in the form of equity/subordinate debts/debentures/preference shares. 2. Internal accrual generated out of profits. 3. Long-term fixed deposits generated from public and corporate clients, financial institutions, and mutual funds, etc. 4. Long-term borrowings from financial institutions like NABARD/SIDBI. Short-Term Sources: 1. Call money market, i.e., funds generated among interbanking transactions where there is online trading of money between bankers. 2. Fixed deposits generated from public and corporate clients, FIs, and MFs, etc. 3. Market-linked borrowings from RBI. 4. Sale of liquid certificate deposits in the open market. 5. Borrowing from RBI under Repo (Repurchase option). 6. Short and medium-term fixed deposits generated from public and corporate clients, mutual funds, and financial institutions, etc.
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7. Floating in current and saving accounts. 8. Short-term borrowings from FIs by way of rated papers placed, etc. 9.
DEFINITION
OF
BANK:
The term 'bank' is being used for a long time, yet it has no precise definition. The basic reason is that the commercial banks perform not just one but many types of functions. The term bank has been defined differently by different authors. Some are as follows
According to Crowther:
"Bank is a dealer in debtshis own and of other people."
According to G.W. Gilbert, "A banker is a dealer in capital or more properly a dealer in money. He is an intermediate party between the borrower and the lender. He borrows from one party and lends to another."
According to Banking Companies Ordinance 1962: "Banker means person transacting the business of accepting for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise and withdraw able by cheque, draft, and order or otherwise and includes any Post Office Savings Bank."
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INTRODUCTION OF BANKING
Banks over the years, have become a significant aspect of an economy. With the on going financial depression, the position of banks have become all the more important in the course of working of the money market and hence the economy of a nation. The banking sector forming a portion of the financial sector primarily works as a financial intermediary generating money supply. From the different macro economic models, banks have been found to be a part of the supply side of the economy. However, over time banks have transformed from merely money enervating organizations to a multi tasking entity. In this paper, we shall deal with the role of banks in the context of the world economy as well as the Indian economy. The first section will illustrate the functions of a bank along with its classification. In the second section, we shall discuss the role of a banks as a major component of the service sector rendering to the economy as a whole. In the third section, we would like to empirically validate our hypothesis with comprehensive data analysis.
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Motivation
The recession in the US market and the global meltdown termed as Global recession have engulfed complete world economy with a varying degree of recessional impact. World over the impact has diversified and its impact can be observed from the very fact of falling Stock market, recession in jobs availability and companies following downsizing in the existing available staff and cutting down of the perks and salary corrections. Various steps taken by RBI to curb The present recession in the economy and counter act the prevailing situation. The sudden drying-up of capital inflows from the FDI which were invested in Indian stock markets for greater returns visualizing the Potential Higher Returns flying back discontinuing to challenge liquidity management. At the heart of the current liquidity tightening is the balance of payments deficit, and this NRI deposit move should help in some small way. To curb the liquidity crises the RBI will continue to initiate liquidity measures as long as the current unusually tight domestic liquidity environment prevails. The current step to curb these being lowering of interest rates and reduction of PLR. The BOP- Balance of Payment deficit at a time when domestic credit demand is very high is resulting in a vicious loop of reduce access to liquidity, slowing growth, and increased risk-aversion in the financial system. In present situation down fall in one sector one day leads to a negative impact on the other sector thus all together everyone feel the impact of the Financial crises with the result of the current recession which started in US and
slowly and gradually due to linked global world have impacted everyone. Solution for the problem still remain at the top of the mind of every one, still everyone facing the impact of recession but how long is the major question which is of great importance.
Hypothesis In this research paper, I am trying to give an overview of the whole banking sector in India and the kind of financial functions they perform which help in the growth of the economic growth and progress of the country. I have tried to look for relationship if any between GDP and the following: Total advances/Total deposits, Credit Deposit Ratio, Lending interest rates, and the sectors in India which got more advances from the banks over the last 3 years.
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What is a Bank?
While the question may seem elementary, the answer can be quite complex. Understanding what banking is all about will help the paper to illustrate the role of banks better. A bank is a financial institution where an individual can deposit money. Banks provide a system for easily transferring money from one person or business to another. Using banks and the many services they offer saves an incredible amount of time, and ensures that the funds of micro as well as macroeconomic agents "pass hands" in a legal and structured manner. There are also other types of financial institutions that operate just like banks.
Functions of a Bank
Functioning of a Bank is among the more complicated of corporate operations. Since Banking involves dealing directly with money, governments in most countries regulate this sector rather stringently. In India, the regulation traditionally has been very strict and in the opinion of certain quarters, responsible for the present condition of banks, whereas are of a very high order. The process of financial reforms, which started in 1991, has cleared the cobwebs somewhat but a lot remains to be done. The multiplicity of policy and regulations that a Bank has to work with, makes its operations even more complicated, sometimes bordering on illogical. This section attempts to give an overview of the functions in as simple manner as possible. Banking Regulation Act of India, 1949 defines Banking as "accepting, for the purpose of lending or investment of deposits of money from the public, repayable on demand or otherwise and withdraw able by cherubs, draft,
order or otherwise". Deriving from this definition and viewed solely from the point of view of the customers,
ROLE OF BANKS IN ECONOMY

Money lending in one form or the other has evolved along with the history of the mankind. Even in the ancient times there are references to the moneylenders. Shakespeare also referred to Shylocks who made unreasonable demands in case the loans were not repaid in time along with interest. Indian history is also replete with the instances referring to indigenous money lenders, Sahukars and Seminars involved in the business of money lending by mortgaging the landed property of the borrowers.
Towards the beginning of the twentieth century, with the onset of modern industry in the country, the need for government regulated banking system was felt. The British government began to pay attention towards the need for an organized banking sector in the country and Reserve Bank of India was set up to regulate the formal banking sector in the country. But the growth of modern banking remained slow mainly due to lack of surplus capital in the Indian economic system at that point of time. Modern banking institutions came up only in big cities and industrial centres. The rural areas, representing vast majority of Indian society, remained dependent on the indigenous money lenders for their credit needs.
Independence of the country heralded a new era in the growth of modern banking. Many new commercial banks came up in various parts of the country. As the modern banking network grew, the government began to realize that the banking
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sector was catering only to the needs of the well-to-do and the capitalists. The interests of the poorer sections as well as those of the common man were being ignored.
In 1969, Indian government took a historic decision to nationalize 14 biggest private commercial banks. A few more were nationalized after a couple of years. This resulted in transferring the ownership of these banks to the State and the Reserve Bank of India could then issue directions to these banks to fund the national programmers, the rural sector, the plan priorities and the priority sector at differential rate of interest. This resulted in providing fillip the banking facilities to the rural areas, to the under-privileged and the downtrodden. It also resulted in financial inclusion of all categories of people in almost all the regions of the country.
However, after almost two decades of bank nationalization some new issues became contextual. The service standards of the public sector banks began to decline. Their profitability came down and the efficiency of the staff became suspect. Non-performing assets of these banks began to rise. The wheel of time had turned a full circle by early nineties and the government after the introduction of structural and economic reforms in the financial sector, allowed the setting up of new banks in the private sector.
The new generation private banks have now established themselves in the system and have set new standards of service and efficiency. These banks have also given tough but healthy competition to the public sector banks.
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Modern Day Role

Banking system and the Financial Institutions play very significant role in the economy. First and foremost is in the form of catering to the need of credit for all the sections of society. The modern economies in the world have developed primarily by making best use of the credit availability in their systems. An efficient banking system must cater to the needs of high end investors by making available high amounts of capital for big projects in the industrial, infrastructure and service sectors. At the same time, the medium and small ventures must also have credit available to them for new investment and expansion of the existing units. Rural sector in a country like India can grow only if cheaper credit is available to the farmers for their short and medium term needs.
Credit availability for infrastructure sector is also extremely important. The success of any financial system can be fathomed by finding out the availability of reliable and adequate credit for infrastructure projects. Fortunately, during the past about one decade there has been increased participation of the private sector in infrastructure projects.
The banks and the financial institutions also cater to another important need of the society i.e. mopping up small savings at reasonable rates with several options. The common man has the option to park his savings under a few alternatives, including
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the small savings schemes introduced by the government from time to time and in bank deposits in the for m of savings accounts, recurring deposits and time deposits. Another option is to invest in the stocks or mutual funds.
In addition to the above traditional role, the banks and the financial institutions also perform certain new-age functions which could not be thought of a couple of decades ago. The facility of internet banking enables a consumer to access and operate his bank account without actually visiting the bank premises. The facility of ATMs and the credit/debit cards has revolutionised the choices available with the customers. The banks also serve as alternative gateways for making payments on account of income tax and online payment of various bills like the telephone, electricity and tax. The bank customers can also invest their funds in various stocks or mutual funds straight from their bank accounts. In the modern day economy, where people have no time to make these payments by standing in queue, the service provided by the banks is commendable.
While the commercial banks cater to the banking needs of the people in the cities and towns, there is another category of banks that looks after the credit and banking needs of the people living in the rural areas, particularly the farmers. Regional Rural Banks (RRBs) have been sponsored by many commercial banks in several States. These banks, along with the cooperative banks, take care of the farmer-specific needs of credit and other banking facilities.
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Future
Till a few years ago, the government largely patro-nized the small savings schemes in which not only the interest rates were higher, but the income tax rebates and incentives were also in plenty. The bank deposits, on the other hand, did not entail such benefits. As a result, the small savings were the first choice of the investors. But for the last few years the trend has been reversed. The small savings, the bank deposits and the mutual funds have been brought at par for the purpose of incentives under the income tax. Moreover, the interest rates in the small savings schemes are no longer higher than those offered by the banks.
Banks today are free to determine their interest rates within the given limits prescribed by the RBI. It is now easier for the banks to open new branches. But the banking sector reforms are still not complete. A lot more is required to be done to revamp the public sector banks. Mergers and amalgamation is the next measure on the agenda of the government. The government is also preparing to disinvest some of its equity from the PSU banks. The option of allowing foreign direct investment beyond 50 per cent in the Indian banking sector has also been under consideration.
Banks and financial intuitions have played major role in the economic development of the country and most of the credit- related schemes of the government to uplift the poorer and the under-privileged sections have been
implemented through the banking sector. The role of the banks has been important, but it is going to be even more important in the future.
BANKS ESSENTIALLY PERFORM THE FOLLOWING FUNCTIONS
1.Accepting Deposits from public/others (Deposits) 2.Lending money to public (Loans) 3.Transferring money from one place to another (Remittances) 4.Credit Creation 5.Acting as trustees 6.Keeping valuables in safe custody 7.Investment Decisions and analysis 8.Government business 9.Other types of lending and transactions. In addition to providing a safe custodian of money, banks also loan money to businesses andconsumers. A large portion of a bank's business is lending. How do banks get the money they loan? The money comes from depositors
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Who intend to save a portion of their wealth? Banks acting as intermediaries, use these deposits as loans to prospective borrowers. The objective of commercial banks like any other organization is profit maximization. This profit generally originates from the interest differential between borrowers and lenders. In the present-day, however, the banking operation has extended much beyond simple lending exercise. So there are other different channels of profit ensuing from other investment programmers as well. However, it should be mentioned in this context that the entire deposit held by a bank cannot be given as loans as the Central Bank retains a portion of this money in the form of cash-reserve for unforeseen circumstances. Banks Create money In the economy by making loans. The amount of money that banks can lend is directly affected by the reserve requirement set by the Federal Reserve. The reserve requirement is currently 3 percent to 10 percent of a bank's total deposits. This amount can be held either in cash on hand or in the bank's reserve account with the Fed. To see how this affects the economy, think about it like this. When a bank gets a deposit of $100, assuming a reserve requirement of 10 percent, the bank can then lend out $90. That $90 goes back into the economy, purchasing goods or services, and usually ends up deposited in another bank. That bank can then lend out $81 of that $90 deposit, and that $81 goes into the economy to purchase goods or services and ultimately is deposited into another bank that proceeds to lend out a percentage of it. In this way, money grows and flows throughout the community in a much greater amount than physically exists. That $100 makes a much larger ripple in the economy than you may realize!
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Other Services Offered by Banks
Credit Cards Personal Loans Home and Car Loans Mutual Funds Business Loans Safe Deposit Boxes Debit Cards
Trust Services Signature Guarantees and many other investment services.
Types of Banks
Central Bank: A central bank, reserve bank, or monetary authority is the entity responsible forth monetary policy of a country or of a group of member states. Its primary responsibility is to maintain the stability of the national currency and money supply, but more active duties include controlling subsidized-loan interest rates, and acting as a lender of last resort to the banking sector during times of financial crisis (private banks often being integral to the national financial system). It may also have supervisory powers, to ensure that banks and other financial institutions do not behave recklessly or fraudulently. Commercial Banks : A commercial Bank performs all kinds of banking functions such as accepting deposits, advancing loans, credit creation & agency functions. They generally advance short term loans to their customers; in some cases they may give medium term loans also
Industrial Banks : Ordinarily, the industrial banks perform three main functions: Firstly, Acceptance of Long term deposits: Since the industrial bank give long term loans, they cannot accept short term deposits from the public. Secondly, Meeting the credit
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requirements of companies: Firstly the industries require purchasing land to erect buildings and purchase heavy machinery. Secondly the industries require short term loans to buy raw materials & to make payment of wages to workers . Thirdly it does some Other Functions - The industrial banks tender advice to big industrial firms regarding the sale & purchase of shares & debentures Agricultural Banks : As the commercial & the industrial Banks are not in a position to meet thecredit requirements of agriculture , there arises the need for setting up special types of banks to finance agriculture. Firstly, the farmers require short term loans to buy seeds, fertilizers, ploughsand other inputs . Secondly, the farmers require long term loans to purchase land, to effectpermanent improvements on the land to buy equipment & to provide for irrigation works .
Foreign Exchange Banks : Their main functions is to make international payments through thepurchase and sale of exchange bills . As is well known , the exporters of a country prefer toreceive the payment for their exports in their own currency . Hence their arises the problem of converting the currency of one country into the currency of another . The foreign exchange bankstry to solve this problem . These banks specialize in financing foreign trade . Indigenous Banks : According to the Indian Enquiry Committee, Indigenous banker is a person or a firm which accepts deposits, transacts business in hundies and advances loans etc.
ROLE OF BANKING IN BUSINESS

Most businesses have a need for a line of credit or other financing with a bank. Especially when business is slow or the company is in some way struggling, relations with your banker can become strained. When the banker is worried, he may start asking hard questions. Here are some ideas on how to deal with this situation and on how to make your banker a partner all the time, not just when things are going well.
The key to excellent relations with your banker is having excellent communications. To have him on your side, he needs to understand what you are doing and to be confident of what to expect in the future. You must reach the point in your dealings with him that you tell him what is happening before it happens. The better able you are to project, the more confidence he will have.
The assumption here is that you have an ongoing relationship with your banker that you want to improve by building his confidence in you. When appropriate communication is in place you will face fewer questions, in fact you will be the one posing as well as answering most of the questions.
The first thing you have to do is to report to him on time. Do not make him wait, or remind you. In the event cannot meet the dead line tell him before you are late and tell him when you will deliver your report.
Starting with your next submission write a one- page situation assessment describing what he will be seeing in your financial statements. Briefly, tell him what is going on that causes the numbers to be what they are. Tell him what you are doing and what you genuinely expect to see in your next report. You might even consider calculating some of the ratios for him that he uses to monitor your company. (If you do not know what these are, ask him). If you have a problem that you do not know how to handle, seek qualified help and tell him you are doing so. He may even suggest a trusted resource. If there are problems evident in your statement are up front about what you are doing. Do not minimize the significance of items that you do not yet have under control. This should serve as the basis for your discussion of the period. Does the same thing next reporting period except now you add information relative to how good, or poor your projections were. If you were close, good, if you were not, you have to discuss why you were off and what you are doing to get better. You might think this is a chance to look bad. Maybe so, but if you cannot project for your banker, how good are the projections you are using for yourself? If you are not making projections, it is difficult to understand how it is that you think you are in control of your business.
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ROLE OF BANKING IN MACRO ECONOMICS
ROLE
OF
COMMERCIAL
BANKS
IN
THE
ECONOMIC
DEVELOPMENT OF A COUNTRY
2. Role of Commercial Banks in the Economic Development of a Country Commercial banks play an important and active role in the economic development of a country. If the banking system in a country is effective, efficient and disciplined it brings about a rapid growth in the various sectors of the economy. The following is the significance of commercial banks in the economic development of a country.
3. Role of Commercial Banks in the Economic Development of a Country 1. Banks promote capital formation 2. Investment in new enterprises 3. Promotion of trade and industry 4. Development of agriculture 5. Balanced development of different regions 6. Influencing economy activity 7. Implementation of Monetary policy 8. Monetization of the economy 9. Export promotion cells
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LIST OF TOP 10 BANKS OF INDIA State Bank of India ICICI Bank AXIS Bank HDFC Bank Bank of India Bank of Baroda Punjab Bank of India (PNB) Citibank Canada Bank Union Bank of India
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HDFC Bank was amongst the first to receive an in-principle approval from the Reserve Bank of India (RBI) to set up a bank in the private sector from Housing Development Finance Corporation Limited (HDFC), in 1994 during the period of liberalization of the banking sector in India. HDFC India was incorporated in August 1994 in the name of HDFC Bank Limited. HDFC India commenced operations as a Scheduled Commercial Bank in January 1995. HDFC India deals in varieties of products like home loan, standard life insurance, mutual fund, securities, credit cards, etc. HDFC has branch offices in all major cities in India like Calcutta, Chennai, Delhi, Bangalore, Hyderabad, Ahmadabad apart from HDFC Mumbai. Headquarter HDFC Bank India : Trade Star, 2nd floor, A Wing, Junction of Kondivita and M.V. Road, Andheri-Kurla Road, Andheri (East), Mumbai 400 059. Tel: (Board) 2822 0055 / 55516666 (Fax) : 2822 9998 / 2822 2414 Network: More than 468 branches over 212 cities across the country ATMs: The ATMs of HDFC India can be accessed by all domestic and international Visa/Master Card, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.
Authorized capital: Rs. 450 crore Paid-up capital: Rs. 282 crore Equity: Holds 24.2% Listing: HDFC India has been listed on the Stock Exchange, Mumbai and the National Stock Exchange. The banks American Depository Shares are listed on the New York Stock Exchange (NYSE) under the symbol HDB. HDFC Product Range HDFC Bank India provides the following range of products: * Savings Account * HDFC Bank Preferred * Sweep-In Account * Super Saver Account * HDFC Bank Plus * Demat Account * HDFC Mutual Fund * HDFC Standard Life Insurance HDFC India innovative services * HDFC Phone Banking * HDFC ATM * HDFC Inter-city/Inter-branch Banking * HDFC Net Banking * HDFC International Debit Card * HDFC Mobile Banking * HDFC Bill Pay
HDFC Bank Loans * HDFC Personal Loan * HDFC New Car Loan and Used Car Loan * HDFC Loan against Shares * HDFC Two Wheeler & Consumer Loan * HDFC Home Loan
HISTORY OF HDFC BANK: 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.
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2.6 ORGANIZATION STRUCTURE AND ORGANIZAION CHART HDFC Bank

JAGDISH COPOOR(CHAIRMAN/CHAIR PERSON)
KEKI MISTRY (DIRECTOR)
ADITYA PURI (MANAGING DIRECTOR)
VINEET JAIN(DIRECTOR)
HARISH ENGINEER (EXECUTIVE DIRECTOR)
PARESH SUKTHANKAR(EXECUTIVE DIRECTOR()
RENU KARNAT(DIRECTOR)
ARVIND PANDE(DIRECTOR)
ASHIM SAMANTA(DIRECTOR)
CM VASUDEV(DIRECTOR)
GAUTAM DIRAN(DIRECTOR)
PANDIT PALANDE(DIRECTOR)
The Composition of the Board of Directors of the Bank is governed by the Companies Act, 1956, the Banking Regulation Act, 1949 and the listing requirements of the Indian Stock Exchanges where the securities issued by the Bank are listed. The Board has a strength of 9 Directors as on March 31, 2007. All Directors other than Mr Aditya Puri are non-executive directors. The Bank has four independent directors and five non-independent directors. The Board consists of
eminent persons with considerable professional expertise and experience in banking, finance, agriculture, small scale industries and other related fields. None of the Directors on the Board is a member of more than 10 Committees and Chairman of more than 5 Committees across all the companies in which he/she is a Director. All the Directors have made necessary disclosures regarding Committee positions occupied by them in other companies. Mr. Jagdish Capoor, Mr. Aditya Puri, Mr. Keki Mistry, Mrs. Renu Karnad and Mr. Vineet Jain are non-independent Directors on the Board. Mr. Arvind Pande, Mr. Ashim Samanta, Mr. Gautam Divan and Mr. C. M. Vasudev are independent directors on the Board. Mr. Keki Mistry and Mrs. Renu Karnad represent HDFC Limited on the Board of the Bank. Mr. Vineet Jain is nominated by the Bennett, Coleman Group on the Board of the Bank.
The Bank has not entered into any materially significant transactions during the year, which could have a potential conflict of interest between the Bank and its promoters, directors, management and/or their relatives, etc. other than the transactions entered into in the normal course of business. The Senior Management have made disclosures to the Board confirming that there are no material, financial and/or commercial transactions between them and the Bank which could have potential conflict of interest with the Bank at larg
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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.
Wholesale banking services :

Blue-chip manufacturing companies in the Indian corp to small & mid-sized corporate 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 offor its to 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 (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
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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.
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.
Distribution network:
HDFC Bank is headquartered in Mumbai. The Bank has an nationwide network of 2000 branches spread in 996 towns and cities across India. All branches are linked on an online real-time basis. Customers in over 500 locations are also serviced through Telephone Banking. The Bank has a presence in all major industrial and commercial centres across the country. Being a clearing/settlement bank to various leading stock exchanges, the Bank has branches in the centres where the NSE/BSE have a member base. The Bank also has 5,998 networked ATMs across these towns and cities. Moreover, HDFC Bank's ATM network can be accessed by all domestic and
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international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.
What Is Loan:
A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower. In a loan, the borrower initially receives or borrows an amount ofmoney, called the principal, from the lender, and is obligated to pay back or repay an equal amount of money to the lender at a later time. Typically, the money is paid back in regular installments, or partial repayments; in an annuity, each installment is the same amount. The loan is generally provided at a cost, referred to as interest on the debt, which provides an incentive for the lender to engage in the loan. In a legal loan, each of these obligations and restrictions is enforced by contract, which can also place the borrower under additional restrictions known as loan covenants. Although this article focuses on monetary loans, in practice any material object might be lent. Acting as a provider of loans is one of the principal tasks for financial institutions. For other institutions, issuing of debt contracts such as bonds is a typical source of funding.
100% Loan Plan with Fixed Deposit Lien: This allows you to take a loan
against your deposit at HDFC Bank.
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You can get a loan for 100% of the invoice value amount with the required margin placed as a fixed deposit in HDFC Bank. Lein is marked on the specified Deposit .Installments can be paid separately or out of the deposit (if the deposit is large enough).
NRI Loans: NRIs can avail of new car loans from HDFC Bank for the use of the
vehicles by their relatives in India. Additional documents required are as follows:
Contract copy and salary slip of NRI.
Endorsement on passport for last 3 years. Proof of ownership of property.
Post-dated cheques must be from the resident account of the borrower.
Past re-payment history :

Plan for customers who have taken a car loan and have repaid that loan fully without any outstanding. Credit approval on the basis of past re-payment record.
Approval Plan: If you have an HDFC Bank Preferred Account or a

Corporate Salary Account with HDFC Bank for more than six months, you can get fast approvals on your loans with minimal documentation.
Eligibility & Documentation : Salaried Individual :

Eligibility :
Minimum age of Applicant: 21 years. Maximum age of Applicant at loan maturity: 58 years. Minimum employment: 1 year in current employment and minimum 2 years of employment. Minimum Annual Income: Rs 100000 net annual income. Telephone: Must at residence
Documents required:
Proof of Identity:- Passport copy, PAN Card, Voters Id car, driving licence(Laminated, Recent, Legible). Income Proof:- Latest salary slip with form 16. Address Proof:- Ration card/Driving license/Voters card/passport copy/telephone bill/ electricity bill/Life insurance policy PAN Card. Bank statement Not Mandatory.
Self Employed: Eligibility Criteria:

Minimum age of Applicant: 21 years. Maximum age of Applicant at loan maturity: 65 years. Minimum employment: At least 3 years in business.
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Minimum Annual Income: Net profit Rs. 60000 p.a for standard cars and Rs.100000 p.a. for mid-sized and premium cars. Telephone: Must at residence.
Documents required:
Proof of Identity:- Passport copy, PAN Card, Voters Id car, driving licence( Laminated, Recent, Legible) Income Proof:- Latest ITR. Address Proof: - Ration card/Driving licence/Voters card/passport copy/telephone bill/ electricity bill/Life insurance policy PAN Card.
Bank Statement:- Waived for small cars, for mid - sized and premium cars if income Is greater than Rs. 1.5 lacs then bank statement requirement can be waived.
Partnership Firms : Eligibility Criteria:

Minimum Income: Net profit Rs. 60000 p.a for standard cars and Rs.100000 p.a. for mid-sized and premium cars. Minimum turnover: Turnover Rs. 4.5 lacs.
Telephone: One phone at least at business and at residence of the loan executing partner.
Documents required:
Proof of Identity:- NA. Income Proof:- Audited balance sheet, Profit & Loss Account for latest two years and the latest 2 years IT returns of the company. Address Proof:- Telephone Bill/Electricity Bill/Shop & Establishment Act certificate/SSI registered certificate/Sales Tax certificate.
Bank Statement:- Waived for small cars, for mid - sized and premium cars if income Is greater than Rs 1.5 lacs then bank statement requirement can be waived.
Private Limited Company : Eligibility Criteria:

Minimum Income: Net profit Rs. 60000 p.a for standard cars and Rs.100000 p a for mid-sized and premium cars. Minimum turnover: Turnover Rs 4.5 lacs. Telephone: One phone at least at business premises.
Documents required:
Proof of Identity:- NA. Income Proof:- Audited balance sheet, Profit & Loss Account for latest two years and the latest 2 years IT returns of the company. Address Proof:- Telephone Bill/Electricity Bill/Shop & Establishment Act certificate/SSI registered certificate/Sales Tax certificate.
Bank Statement:- NA
Public Limited Company : Eligibility Criteria:

Minimum Income: Net profit Rs. 60000 p.a for standard cars and Rs.100000 p a for mid-sized and premium cars. Minimum turnover: Turnover Rs 4.5 lacs. Telephone: One phone at least at business premises.
Documents required:
Proof of Identity:- NA. Income Proof:- Audited balance sheet, Profit & Loss Account for latest two years. Address Proof:- Telephone Bill/Electricity Bill/Shop & Establishment Act certificate/SSI registered certificate/Sales Tax certificate
Bank Statement:- NA.

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Loans Offered:
Asset / Medical Equipment Finance : For purchase of CT Scanners, Color Dopplers, Sonography Machines, MRI, X-Ray Machines, and other medical equipment. Infrastructure Loan: For purchase of new premises for setting up of Clinics, Diagnostic Centers and Hospitals. Corporate Term Loan: To provide term loan for the functioning of the Healthcare entity, hospital or clinic. Balance transfer of existing Term Loan or Working Capital : To transfer an existing term loan from the old bank to our bank. ME-OD Facility: Healthcare customers can avail OD limits for their working capital requirement against the total credit card swipes made per month on HDFC Bank Credit Card terminal installed in their facility. Working Capital Requirement : We provide working capital facility by way of Cash Credit, Overdraft or Demand Loan for funding day-to-day operational requirements like purchase of consumables, maintenance, salary, etc.
Who can Avail This Loan?

Nursing Homes, Diagnostic Centers, Pathology Lab Centers, Specialty Clinics like Skin & Dental, Dialysis Centers, Endoscopy Centers, Hospitals, and IVF Centers. Medical Education Institutes like medical/paramedical colleges, dental colleges.
Large Medical Equipment Dealers. Medical Equipment Manufacturers. Medical Consumable Dealers. Pharmacy Manufacturers.
Loan Features / Benefits:

Complete Solution for Healthcare Industry with Equipment Finance, Project Finance, Working Capital Limits, BGs, Letter of Credit, Buyers Credit, FCNR funding, etc. Customized and structured solutions within regulatory norms based on client requirements. Tenure ranging from 12 months to 84 months as per project requirement. Comprehensive solutions at competitive pricing which gives opportunity for balance transfers from other financial institutions. Kisan Vikas Patra (KVP). Gold Deposit Certificates. Non Convertible Debentures Securities should be in the name of eligible borrowers (Securities in the name of minors, Trusts, partly paid up or shares in the name of individuals in companies of which they are Directors/ Promoters cannot be accepted).
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Documents Required:
Proof of Identity Signature Proof. Address Proof. Audited Balance Sheet, Profit & Loss Account for latest two years and latest 2 years IT returns in case of Companies/Proprietorships/Partnership firms.
The loan is granted only for personal purposes. Loan Amount cannot be used for speculative activities or any purpose linked to capital market activities or for any anti social purposes. All credit is at the absolute discretion of HDFC Bank.
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Fees & Charges For Loans Against Securities : Overdraft facility:

Description of charges Processing Charges Loans against security Upto 2% of the overdraft limit with minimum of Rs.1250/- at the time of setting up the limit or enhancement or annual renewal. (In case of mid-term enhancement of limits, processing fees will be charged only on a pro-rata basis) Pre-payment charges Nil
Duplicate no due certificate / NOC Nil No Due Certificate / No Objection Certificate (NOC) Solvency Certificate Charges for changing from fixed to floating rate of interest Charges for changing from floating to fixed rate of interest Stamp duty & other statutory charges As per the rates applicable at the place of execution of Loan Agreement Not Applicable Not Applicable Not Applicable Nil
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Annual Maintenance Charge(AMC)
Upto 0.5% of the overdraft limit with minimum of Rs. 500/- subject to maximum of Rs. 10,000/-.
Rs.500/- for accounts where AMC was defined as NIL at the time of execution of Loan Agreement. Minimum Rs. 500/- and maximum Rs. 10,000/- where AMC has been set as a percentage of the Limit
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CONCLUSION
Banks provide security and convenience for managing your money and sometimes allow you to make money by earning interest. Convenience and fees are two of the most important things to consider when choosing a bank.
Writing and depositing checks are perhaps the most fundamental ways to move money in and out of a checking account, but advancements in technology have added ATM and debit card transactions and ACH transfers to the mix.
All banks have rules about how long it takes to access your deposits, how many debit card transactions you're allowed in a day, and how much cash you can withdraw from an ATM. Access to the balance in your checking account can also be limited by businesses that place holds on your funds.
Debit cards provide easy access to the cash in your account, but can cause you to rack up fees if you're not careful.
While debit cards encourage more responsible spending than credit cards, they do not offer the same protection or perks to consumers.
Regularly balancing your checkbook or developing another method to stay on top of your account balance is essential to successfully managing your checking account and avoiding fees and bounced checks.
If you have more money than you need to manage your day-to-day expenses, banks offer a variety of options for saving, including money market accounts, CDs, high-interest online savings accounts and basic savings accounts.
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To protect your money from electronic theft, identity theft, and other forms of fraud, it's important to implement basic precautions such as shredding account statements, having complex passwords and only doing online banking through secure internet connections.
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A Project Report On HDFC Bank

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A PROJECT REPORT ON HDF BANK

Sydenham College of Commerce & Economics

A PROJECT REPORT ON HDF BANK

SYDENHAM COLLEGE OF COMMERCE AND ECONOMICS

Signature of Student Name of Student: VIJAY SINGH Roll No.:-52

T.Y.BBI SYDENHAM COLLEGE OF COMMERCE AND ECONOMICS

A PROJECT REPORT ON HDF BANK

Experience Is the Best Teacher

T.Y.BBI SYDENHAM COLLEGE OF COMMERCE AND ECONOMICS

A PROJECT REPORT ON HDF BANK

T.Y.BBI SYDENHAM COLLEGE OF COMMERCE AND ECONOMICS

A PROJECT REPORT ON HDF BANK

A PROJECT REPORT ON HDF BANK

According to Crowther: "Bank is a dealer in debtshis own and of other people."

T.Y.BBI SYDENHAM COLLEGE OF COMMERCE AND ECONOMICS

A PROJECT REPORT ON HDF BANK

includes any Post Office Savings Bank."

INDIAN MANAGEMENT SCENARIO

A PROJECT REPORT ON HDF BANK

A PROJECT REPORT ON HDF BANK

T.Y.BBI SYDENHAM COLLEGE OF COMMERCE AND ECONOMICS

A PROJECT REPORT ON HDF BANK

T.Y.BBI SYDENHAM COLLEGE OF COMMERCE AND ECONOMICS

A PROJECT REPORT ON HDF BANK

A PROJECT REPORT ON HDF BANK

T.Y.BBI SYDENHAM COLLEGE OF COMMERCE AND ECONOMICS

A PROJECT REPORT ON HDF BANK

A PROJECT REPORT ON HDF BANK

ROLE OF BANKS IN ECONOMY

A PROJECT REPORT ON HDF BANK

T.Y.BBI SYDENHAM COLLEGE OF COMMERCE AND ECONOMICS

A PROJECT REPORT ON HDF BANK

Modern Day Role

A PROJECT REPORT ON HDF BANK

T.Y.BBI SYDENHAM COLLEGE OF COMMERCE AND ECONOMICS

A PROJECT REPORT ON HDF BANK

A PROJECT REPORT ON HDF BANK

BANKS ESSENTIALLY PERFORM THE FOLLOWING FUNCTIONS

T.Y.BBI SYDENHAM COLLEGE OF COMMERCE AND ECONOMICS

A PROJECT REPORT ON HDF BANK

T.Y.BBI SYDENHAM COLLEGE OF COMMERCE AND ECONOMICS

A PROJECT REPORT ON HDF BANK

Other Services Offered by Banks

A PROJECT REPORT ON HDF BANK

Trust Services Signature Guarantees and many other investment services.

A PROJECT REPORT ON HDF BANK

A PROJECT REPORT ON HDF BANK

ROLE OF BANKING IN BUSINESS

A PROJECT REPORT ON HDF BANK

T.Y.BBI SYDENHAM COLLEGE OF COMMERCE AND ECONOMICS

A PROJECT REPORT ON HDF BANK

ROLE OF BANKING IN MACRO ECONOMICS

T.Y.BBI SYDENHAM COLLEGE OF COMMERCE AND ECONOMICS

A PROJECT REPORT ON HDF BANK

T.Y.BBI SYDENHAM COLLEGE OF COMMERCE AND ECONOMICS

A PROJECT REPORT ON HDF BANK

A PROJECT REPORT ON HDF BANK

A PROJECT REPORT ON HDF BANK

T.Y.BBI SYDENHAM COLLEGE OF COMMERCE AND ECONOMICS

A PROJECT REPORT ON HDF BANK

2.6 ORGANIZATION STRUCTURE AND ORGANIZAION CHART HDFC Bank

KEKI MISTRY (DIRECTOR)

ADITYA PURI (MANAGING DIRECTOR)