HDFC Bank Ltd.

The Housing Development Finance Corporation Limited (HDFC)

was amongst the first to receive an 'in principle' approval from

the Reserve Bank of India (RBI) to set up a bank in the private

sector, as part of the RBI's liberalisation of the Indian Banking

Industry in 1994. The bank was incorporated in August 1994 in

the name of 'HDFC Bank Limited', with its registered office in

Mumbai, India.

HDFC Bank commenced operations as a Scheduled Commercial Bank in January

1995.

Currently we have a nationwide network of 1412 Branches and 2890 ATM’s across

Locations.
 About Us
• Vision - To be a World-Class Indian Bank.
•
• Mission - Use Enabling technology to provide value added products and services to customers.
• 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.
•
• Core Values - HDFC Bank's business philosophy is based on four core values - Operational
Excellence, Customer Focus, Product Leadership and People.  
•
• Business Areas
• Wholesale Banking services
• Retail banking services
• Treasury operations
•
 Senior Management

Mr. Jagdish Capoor took over as the bank's Chairman in July 2001. Prior to this, Mr..
Capoor was a Deputy Governor of the Reserve Bank of India.

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.
What is a Bank ??
 What is a Bank
A Bank is an organization, usually a corporation, which does most or
all of the following: receives demand deposits and Time deposits,
honors instruments drawn on them, and pays interest on them;
discount notes, provides loans, and invests in securities, collects
cheques, drafts, and notes; certifies depositor's cheques; and issues
drafts and cashier cheques.
Some people go to banks in search of a safe place to keep their
money. Others are seeking to borrow money to buy a house or a car,
start/expand a business, pay for education etc.
Where do banks get the money to lend? They get it from people who
open accounts. Banks act as go-betweens for people who save and
people who want to borrow. If depositors did not put money in
banks, the banks would have little or no money to lend.
Your savings are combined with the savings of others to form a big
pool of money, and the bank uses that money to make loans. The
money does not belong to the banks President , board of directors or
stock holders. It belongs to the depositors. That’s why bankers have a
special obligation not to take big risks while giving loans
 Evolution of Banks in India
Modern Banking in India was developed during the British
era. In the first half of the19th century, the British East India
Company established three banks – the Bank of Bengal in 1809,
the Bank of Bombay in 1840 and the Bank of Madras in 1843.
But in the course of time these three banks were amalgamated
to a new bank called Imperial Bank and later it was taken over
by the State Bank of India in 1955.
Allahabad Bank was the first fully Indian owned bank.
The Reserve Bank of India was established in 1935 followed by other banks like Punjab
National Bank, Bank of India, Canara Bank and Indian Bank.
Nationalization of banks happened in 1969 and 1980 to give the government greater control
over credit delivery
Old Banking Practices:
4-6-4 method of ‘Borrowing’ at 4%; ‘Lending’ at 6%; ‘Going home’ at 4
1. Banking was slow and bureaucratic involving several customer visits
2. Network of branches had minimal connectivity
3. Paperwork was intense
4. Customer relationships were driven by individuals with no central pool of customer
information
 Evolution of Banks in India - Liberalisation

•
• Early 1990s embarked on liberalization giving
licenses to private banks.
• New Generation Tech-savvy Banks – such as
HDFC Bank, ICICI Bank, UTI Bank introduced
a modern outlook and tech-savvy methods.
• New Approach
1.Banking reach has increased tremendously – through bank branches and ATMs (incl.
SCBs, Pvt.Sector Banks, Nationalised Banks)
2.Focus on global markets
3.Communication is faster enabling quick closure of deals
4.Service quality, product range has improved for individuals & businesses
5.Approach is customer-focused – Customer is King
6.Customized Products for each customer segment
•
 Types of banks
Central Bank- The Reserve Bank of India is the central Bank that is fully owned by the
Government. It is governed by a central board (headed by a Governor) appointed by the
Central Government. It issues guidelines for the functioning of all banks operating within
the country.
Public Sector Banks - State Bank of India and its associate banks called the State Bank
Group in addition 20 nationalized banks and Regional rural banks mainly sponsored by
public sector banks
Private Sector Banks
a.Old generation private banks
b.New generation private banks
c.Foreign banks operating in India
d.Scheduled co-operative banks
e.Non-scheduled banks
Co-operative Sector - The co-operative sector is very much useful for rural people. The
co-operative banking is divided into the following categories.
a.State co-operative Banks
b.Central co-operative banks
c.Primary Agriculture Credit Societies

Development Banks/Financial Institutions – IFCI, IDBI, NABARD etc

 Types of banks

• Banks in India can be categorized into non scheduled banks and scheduled banks
•

• All banks which are included in the Second Schedule to the Reserve Bank of India Act, 1934 are Scheduled Banks. These
banks comprise Scheduled Commercial Banks and Scheduled Co-operative Banks.
•

• Scheduled Commercial Banks in India are categorised into five different groups according to their ownership and / or
nature of operation. These bank groups are (i) State Bank of India and its Associates, (ii) Nationalised Banks, (iii)
Regional Rural Banks, (iv) Foreign Banks and (v) Other Indian Scheduled Commercial Banks (in the private sector).

• Scheduled Co-operative Banks consist of Scheduled State Co-operative Banks and Scheduled Urban Co-operative Banks.
( State, Central ,Urban – Cooperative Banks)

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 Basic Banking Terms

• Prime Lending Rate is the benchmark rate for all bank loans. Historically, the PLR has been the rate at which
banks lend to the best borrower—one who is the safest or the least likely to default on the loan. Earlier, banks
could not lend below the base rate, but along with more liberal financial markets came the freedom for banks to
fix rates below the PLR.
•

• Repo Rate  is the rate at which the RBI buys government securities from the market to infuse liquidity in the
•
system.
• Reverse Repo rate is the rate at which the RBI absorbs excess bank funds by selling government securities in the
market
•

• Cash Reserve Ratio is the percentage of bank deposits which are statutorily parked with the RBI as reserve. At
•
present, effective from the fortnight beginning July 29, 2008, the rate of CRR is 9 per cent of the NDTL
• Security of deposits -The Deposit Insurance and Credit Guarantee Corporation (DICGC) insures deposits of up
to Rs 1 lakh (Rs 100,000) for individuals if a bank goes into liquidation
•

• Bank Rate  is that rate at which the RBI lends overnight money to commercial banks.
•
•
 Basic Banking Terms

Cheque - A Cheque is an unconditional order in writing signed by the Customer

addressed to his banker requiring him to pay on demand a certain sum of money to a
specific person named therein or to the bearer.

Parties to a Cheque
- Drawer - Account-holder who issues & signs the Cheque. Gives instructions to

the Bank to debit his account

-Drawee - Bank where the drawer maintains a account & to whom the
instruction is given debit the Cheque amount and credit the payee.
-Payee Person in whose favor the Cheque is drawn Entitled to receive the
amount stated in the Cheque

Bankers / Managers Cheque – A bankers Cheque is a Cheque/ pay order issued by the
branch of a Bank and is drawn and payable on the same branch.

Demand Draft – Is an order to pay money , drawn by one office of a bank upon another
office of the same bank for a sum of money payable to order on demand
 Banks vs. Other FIs

• No institution other than a bank authorized to accept deposits withdrawable by Cheque

• Banks must have a license from the Reserve Bank of India to carry on the business of
banking
• No individual group or firm is permitted to use the words ‘Bank, Banker, Banking or
Banking Company’ as part of its name unless it qualifies to be defined as a bank under
Sec. 7 of Banking Regulation Act
• Banks augment or expand the money supply in the economy unlike other
financial institutions as regulated by Central Bank (RBI)
• Deposits with banks key driving force behind lending (subject to reserve
requirements)
• Financial Institutions lend using money sourced from Owned capital or Borrowed
capital
 Laws Governing Banks

• RBI Act 1934

• The Banking Regulations Act 1949
• Companies Act 1956 (For Banking Companies)
• SBI Act 1956
• Regional Rural Banks (RRB) Act 1976
• The Securities & Exchange Board of India 1992
• Foreign Exchange Management Act (FEMA) 1999
• Policies of the Central Government from time to time

What banks cannot do?

Engaging directly or indirectly in trading activities

Acquiring immovable property for investment (not for own use)
Engaging in buying, selling or barter of goods
 Rights of a Bankers

• To employ deposits garnered in the most profitable manner

• To charge customers for services rendered

• To refuse demand for payment of money if the demand is not in order

• Complete reasons to be provided for such returns

• To exercise ‘General Lien’

• Right of ‘Set Off’

• Right of ‘Appropriation’

• To terminate the contract or close the account after giving due notice
 Duties of the Banker

• Accept Deposits to the account in the usual course

• Pay on demand, the money standing to the credit of the customer
• Pay interest on deposits as agreed upon
• Provide the customer with information about his account
• Honor Cheques issued by the customer (in the usual course)
• Collection of Cheques issued to the customer’s account
• Maintain confidentiality
• To act on any instructions provided by the customer in due course
• To close the account on instructions of the customer
• Immediately informing the customer of problems to the account or any fraud committed
on the account
•
 Types of Customer

Personal Customers Business Customers

• Individuals (self) • Proprietorships

• Individuals (joint) • Partnerships

• Minors • Companies

• Foreign Nationals • Clubs, Associations,

• Non Residents Societies & trusts

• HUFs
 Why do customers need a bank ??

• Safe – keeping
•

• Investment reasons
• Grow money by investing in financial assets

•
• Transactional reasons
• Remit money

• Convert money
• Collect money

• Financing reasons
• Borrow money for expenditure or acquiring assets
 Rights of the Customer
To be repaid amounts deposited, together with the agreed rate of interest

To receive information about his account

To close his account

Duties of a Customer
• Provide full and correct relevant information as required by bank
• Maintain sufficient balances as agreed upon
• Pay agreed charges for services rendered to him
• Exercise reasonable care when issuing cheques
• Ensure that there is sufficient balance in the account to honor his cheques
Inform the bank of knowledge of a fraud on the account or if his Cheque /
Cheque book is stolen / lost
• Repay all monies borrowed from the bank together with the agreed rate of
interest
 Range of Products
Deposit Products: Loan Products:
 Savings Accounts
 Auto Car Loans
 Current Accounts
 Loans against Securities
 Fixed Deposits
 Personal Loans
Other Products / Services:
 POS Terminals  Credit Cards

Retail  Debit Cards  2-Wheeler Loans

 Depository Accounts  Commercial Vehicles
Banking  Mutual Funds Finance
 Insurance  Home Loans
 Advisory Services  Retail Business Banking
 Corporate Salary Account
 NRI Services
 Direct Banking Services

One-stop shop to meet all customer needs

Savings Max Account
 Target segment

•
• Professionals : Doctors, Lawyers and other Self-employed professionals
•
• Business-setups : Businessmen, Directors, Partners, Proprietors of
existing current accounts
•
• Salaried with MNC
•
• Existing Savings account holders maintaining an AQB of > 25K & < 1
lac for the last 2 quarters . They can upgrade their existing account to
Savings Max Account.
 What is it in for Customers ?
Free Monthly
Statement of
Optional Sweep- A/c Unlimited Cash
out facility for Withdrawal
investment into transactions at
FDs any
bank ATMs

FREE
3rd party CD / CW Gold Debit Card
at non-home to Primary
branches upto Rs. Holder
50,000 per day
free

Free Woman’s &

International
Free DD / MC upto
Free PAP cheque Debit Card for all
Rs. 50,000 per day
book & usage holders
upto Rs. 1 lakh
p.m
 Product Features
• Initial pay-in & AQB of Rs 25,000/- OR
• Zero Balance Savings Account with a Fixed Deposit of Rs. 1,00,000/- (under primary applicants
cust-id)( Initial pay in requirement is Rs 25,000/- while opening the SB A/c)
•

• Free unlimited cash withdrawal at any Bank’s ATM using your HDFC Bank Debit Card.
(Domestic transactions). Charges will be charged initially & reversed in 15-20 days
•

• Free Gold Debit Card for primary account holder for lifetime of the account . Gold Debit Card to
be offered to other account holders at Rs 250/- p.a.
•

• Free Woman’s Advantage/International Debit Card for all account holders for life time of the
account
•

• Free Payable-at-Par (PAP) Cheque book, without any usage charges upto a limit of Rs. 1 lac per
month. Above Rs. 1,00,000/- a charge of Rs 2.90/thousand on the full amount would be
applicable.
•

• Free Demand Drafts on HDFC Bank locations, upto a limit of Rs. 50,000/- per day (only at Home
branch). Above Rs 50,000 charges applicable as per service charges & fees brochure.
•

• The customer can make multiple DD/MCs on HDFC bank locations aggregating upto Rs 50,000
in a day free of cost.
•
 Product Features
• Self/Third Party cash deposit/withdrawal at non-home branches, upto Rs 50,000/- per
day free - Above Rs 50,000 a charge of Rs 2.90/thousand on the full amount would
be applicable.
• Optional Sweep out facility to transfer extra savings to a Fixed Deposit, at the
threshold of Rs.50,000/-. In the event of the balance in Savings Max Account
exceeding Rs 50,000/-, the amount in excess of Rs 50,000/- will be swept out in to a
Fixed Deposit with a minimum value of Rs 25,000/- for a 1 year 1 day period.
• FDs are broken on FIFO basis. Sweep-in happens for ATM / Cheque transactions &
POS transactions. ECS happens provided balance in FD is sufficient.
• Free Bill Pay & InstaAlerts for all account holders for lifetime of the account.
• 50% off on the Locker rental for the 1st year only.
• Folio maintenance charges on Demat Account free for first year.
• NEFT and Free PhoneBanking, MobileBanking and NetBanking services
HDFC Bank Senior Citizens Account
 Who can open the account ?

• Resident Individuals in the age group of 60 yrs & above

•
• Joint accounts can be opened
•
• The 1st applicant in the account should be a Sr. Citizen
•
• Existing customers who already have an account with HDFC Bank
can avail of the features of this a/c by converting it to a Sr. Citizens a/c
(without changing their account number)
 Product Features

Free International 3 Free Cash Withdrawal

Debit Card transactions per month at
any bank ATM

Enhanced ATM
Cash Withdrawal limit of Reduced PAP
Rs.25,000 / day usage charges

AQB & IP
Rs.2500/-

Free Accidental Monthly

Hospitalisation Cover Account Statements
of Rs.50,000 p.a

Free 3rd party

Free Accidental cash txns upto
Hospital Cash facility Rs.50,000 per day
 Product Features

• EasyShop International Debit Card Free for the first applicant

• Enhanced limit per day - ATM Cash withdrawal of Rs.25,000/- and POS limit
of Rs.25,000/-
Pls note: In case the first applicant is a woman, Women’s Advantage Debit card will be issued
by default (for New customers only). It will be Free for the first applicant
•
• Withdrawal limits per day - on the Women’s Advantage Debit Card are
Rs.20000/- at the ATM & Rs.30,000/- at the POS
• Insurance Cover on the debit card for the first applicant only:
• Accidental Hospitalisation Cover of Rs. 50,000/- on the debit card
• Accidental Hospital Cash payable once a year @ Rs.500 per day for a
maximum of 15 days per year.
• 3 Free Cash withdrawal transactions per month at any other banks ATMs
 Product Features

• Payable at Par cheque book. Free issuance and usage charge upto Rs.50,000/-
per month. Above Rs.50,000/- charge of Re.1/- per thousand for the entire
amount
• Physical statement of accounts - Monthly Free / Passbook facility available
• Special senior citizen rates for FDs (0.5% extra)
• Special rates for senior citizen for DDs booked on HDFC Bank locations
• Third party cash transactions (at non home branch) free upto Rs.50,000 per
day. Above Rs.50,000/- charges of Rs.2.90/- per thousand
• Free NetBanking, PhoneBanking, MobileBanking & InstaAlerts
 Insurance Cover

The Insurance Policy is with Bajaj Allianz Insurance Co. Ltd.

Accidental Hospitalisation Cover*
• This is a Reimbursement Cover of Rs.50,000/- per annum
• Can be claimed if customer is hospitalised for more than 24 hrs due to an accident in
India

Accidental Hospital Cash Benefit

• This can be claimed for each completed day of hospitalisation (for hospitalisation due
to an accident)
• Rs.500/- can be claimed per day. Max no. of days = 15
• This can be claimed once a year

For the insurance claim to be processed, customer needs to perform at least 1

purchase transaction using the Debit Card in the previous 6 months of the month of the
accident.
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