copy of summer training project[1]

8/2/2019 Copy of Summer Training Project[1]

1/104

SUMMER TRAINING REPORT

ON

TRENDS AND PRACTICES OF HDFC BANK:-RETAIL ABNKING

CONDUCTED AT

HDFC BANK, Ambala City

In partial fulfillment of the requirement for the award of the degree of

MASTERS OF BUSINESS ADMINISTRATION(Session 2007-2009)

UNDER THE GUIDANCE OF: Submitted by:

Mr. Rajeev Bansal SAURABH ANANDRoll no: 1207783

MBA 3rd Semester

Submitted to

MAHARISHI MARKANDESHWAR INSTITUTE OF MANAGEMENTMULLANA, AMBALA (HARYANA)


2/104

IndexContents Page No:(A) Declaration

(B) Certificate

(C) Preface

(D) Acknowledgement

Executive Summary

Chapter 1 - Introduction 9

Chapter 2 - Review of Literature 11

Chapter 3 - Research Methodology 14

(a) Objective of study

(b) Type of Research

(c) Research Design

(d) Sources of Data

(e) Sampling unit

(f) Sample size

(g) Type of Sampling(h) Method of data collection

(i) Instrument used for data collection

(j) Limitation

Chapter 4 - Industry Profile 17

Chapter 5 - Company Profile 29

Chapter 6 - Retail Banking 40

Chapter 7 - Data Analysis & Findings 77

Chapter 8 - Suggestion 92

Chapter 9 - Conclusion 94

Bibliography 96

Annexure 98


3/104

DECLARATION

This report is result of my eight weeks management summer training at HDFC

BANK. I here by declare that project report titleRETAIL BANKINGconducted

at HDFC BANK, Ambala City. Submitted in partial fulfillment of requirements for

Degree of Masters of Business Administration. This report is bonafide research

work carried out by me. No part of this report has been submitted for award on

any other diploma, degree, fellowship or other similar title or prizes.

This report is based on my personal opinion hence cannot be referred to for

official or legal purpose.

(SAURABH ANAND)

Roll No: 1207783


4/104


5/104

PREFACE

Practical training is an important part of the theoretical studies. It is of an

immense importance in the field of management. It offers the student to explore

the valuable treasure of experience and an exposure to real work culture followed

by the industries and there by helping the students to bridge gap between the

theories explained in the books and their practical implementations.

Training plays an important role in future building of an individual so that he/she

can better understand the real world in which he has to work in future. The theory

greatly enhances our knowledge and provides opportunities to blend theoretical

with the practical knowledge.

I have completed the summer training programme at HDFC BANK, Ambala and

have covered the RETAIL BANKING products and services offered by HDFC

BANK and their awareness amidst customers. I have tried to cover each and

every aspect related to the topic with best of my capability.

(Saurabh Anand)


6/104

ACKNOWLEDGEMENT

Perseverance, inspiration and motivation have always played a great role in thesuccess of any venture. At this level of understanding it is often difficult to

understand the wide spectrum of knowledge without proper guidance and advice.

This report conveys my heartiest thanks to Mr.Rajeev Bansal (BM) and all the

Officers and Staff Members of HDFC BANK and I am also thankful to all the team

of this Unit, Who have given me their full cooperation and devoted their valuable

time for rendering me their needy services and guidelines during the training

period. With those sincere and precious efforts, I have been able to complete my

practical training successfully.

Last but not the least I would like to express my gratitude to Dr. Sanjeev Marwah

(Director) who have provided me with the opportunity to work on this project

report.

Project Guide: SAURABH ANAND

Mr. Rajeev Bansal MBA(3rd Sem.)

Mr. Vaibhav KohliMr. Harinder Singh


7/104

EXECUTIVE SUMMARY

Retail Banking has immense opportunities in a growing economy like India. Asthe Indian growth story goes further, Retail Banking is going to emerge as a keygrowth driver. The rise of growing Indian middle class is an important factorcontributing in this regard. The younger population not only hasincreasing purchasing power, but as far as acquiring personal debt is concerned,they are perhaps more comfortable than our previous generations. Banks arenow involved in bundling of services and usage of various distribution channelshave increased the retail base to a larger extent.

Some of the key issues related to the Retail Banking industry in India are financialinclusion, responsible lending, access to finance, regulation and financial crime

prevention etc. With these issues surfacing the Retail Banking industry, lets seewhat are the challenges involved in the industry.

First, retention of customers is going to be a major challenge.According to a research by Reichheld and Sasser in the HarvardBusiness Review, 5% increase in customer retention canincrease profitability by 35% in banking business, 50% ininsurance and brokerage and 125% in the customer creditmarket. Thus banks need to emphasize retaining customers andincreasing market share.

Second rising indebtedness, could turn out to be a cause for concern

in the future. RBI is concerned about the rising high growth in theretail segment especially in the housing and real estate segment,thus RBI as a temporary issue measure has put in place riskcontainment measures and increased the risk weight from 100 to 125% in the case of consumer credit including credit cards market.

Third information technology poses both opportunities andchallenges. Even with ATM machines and Internet banking, manyconsumers still prefer the personal touch of their neighbourhoodbranch bank. Technology has made it possible to deliver servicesthroughout the branch network, providing instant updates to checkingaccounts and rapid movement of money for stock transfers etc.

However this dependency on the information network hasbrought IT departments additional responsibilities and challenges inmanaging, maintaining and optimizing the performance of retailnetwork of branches. Specific challenges include ensuringthat account transaction applications run efficiently between thebranch offices and data centres.

Fourth, KYC issues and money laundering risks in retail banking isyet another important issue. Tackling the KYC norms is one of thebiggest challenges faced by the Indian retail banking industry.


8/104

HDFC BANK is a new generation private sector bank offering a wide spectrum ofretail, SME and corporate banking products and services. It has been among theearliest banks to offer a technology-enabled customer interface that provideseasy access and superior customer service.

HDFC BANK has a nationwide reach through its network of 500 branches and1200ATMs. The bank aims to serve all the banking and financial needs of itscustomers through multiple delivery channels, each of which is supported bystate-of-the-art technology architecture.

HDFC BANK offers various products and services dealing with retail bankingranging from various saving and business accounts, loans and other wealthmanagement products including mutual funds, life insurance and generalinsurance.HDFC BANK has tied up as a Twin Engine for insurance with AVIVA Group for

life insurance and ICICI Lombard for General Insurance.

The major inferences drawn under the research project were:

The potential of retail banking is growing at a considerable pace due to thefavorable demographic trends of population in India with its 70%population falling under the age group 35 years.

The unawareness amidst the customers is considerable as the use ofplastic money in India ranges just to a minor figure of 1% as compared tothat of US viz. 18% which is a positive sign in one way depicting that thereis a lot of scope yet to be witnessed by Indian Economy.

The merger between Bank of Punjab and HDFC BANK has created aremarkable impact on the working of the combined entity HDFC BANKwhich shows the positive signs of growth.

There is a lot of competition amongst various private and public sectorbanks on the grounds of quality, services, rate of interests, etc.

Due to the high level of competition in the economy, the bank really needsto concentrate more towards promotional strategies for enhancing theawareness of its products and services amongst present and potentialcustomers.


9/104

INTRODUCTION


10/104

Retail banking is typical mass-market banking where individual customers uselocal branches of larger commercial banks. Services offered include: savings andchecking accounts, mortgages, personal loans, debit cards, credit cards, and soforth.

Retail banking is undergoing dramatic changes. The old relationship betweenbanks and customers is changing. Changing business models, cost relations,customer relations, deregulation, convergence of economic and monetarypolicies, globalization of financial markets and systems, incessant introduction ofnew products and services, more discerning, more demanding and less loyalcustomers are a few of the important change drivers.

As the players in the market adapt themselves to tougher competition ahead,they have to alter their product mix, delivery channels and corporate structure toserve their functional role. Some of the banking activities that are deemed very

appropriate today were considered inappropriate, difficult and òut of policypronouncement of central banks' in the past. To quote one example, housingfinance and consumer durable loans that are very personal in nature, wereconsidered ìnflationary' and were discouraged by banks some 15 years back.But today the situation is different. Similarly in future, banks may have to servecustomers by bundling certain financial services that are not currently combinedor they may merge banking services with non-banking services such as tickets toconcerts, sporting events, vacation planning and the like. Thus the market willredefine the roles and banks have to gear themselves up for a fierce competition.

Retail banking is gaining importance with the changing customer preferences.

Customers are seeking products and services that help them simplify and takecontrol of their lives. The greatest challenge for the retail banks will be to provideÀnytime, Anywhere, banking' to retain their customers. Unless they penetratedeep into the retail market today, their survival will be jeopardized. Distributionchannel, human resources, technology, operation, etc., are the key areas, wheretransformation is needed for banks to become a leader in retailing business.

Retail banking in India is experiencing a fierce competition as the foreign, privateand public sector banks are competing with one another to expand theirrespective market share. Leading banks are now adopting product-centric andchannel-centric models to penetrate the market. With the increasing competition,

customer service is becoming the key factor for differentiation.

Impact of Internet on retail banking also plays a vital role. Credit card issuershave greeted the Internet revolution with a sense of profound feeling of

opportunity and a vague feeling of dread as well. The competition is heating upbetween the on-line start-ups and the traditional credit card issuers. While the

start-ups have the advantage of state- of-the art technology.
http://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Branch_(banking)http://en.wikipedia.org/wiki/Savingshttp://en.wikipedia.org/wiki/Checkinghttp://en.wikipedia.org/wiki/Mortgagehttp://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Debit_cardhttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Branch_(banking)http://en.wikipedia.org/wiki/Savingshttp://en.wikipedia.org/wiki/Checkinghttp://en.wikipedia.org/wiki/Mortgagehttp://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Debit_cardhttp://en.wikipedia.org/wiki/Credit_card


11/104


12/104

LITERATURE REVIEW

Across the globe Retail Banking has been a innovation in the commercial bankingsector in recent years. The growth of retail lending, especially in the emergingeconomies like India is attributable to the rapid advances in the

information technology, and several macroeconomic and financial sectorreforms. In recent times India has experienced a surge in Retail Banking. Theretail loan market has been transformed from a sellers market to a buyersmarket.

Lets first understand what is Retail Banking. Retail Banking refers to the dealingof commercial banks with individual customers, both on liabilities and assets sideof the balance sheet. Fixed, current and savings account for the liabilities side,while mortgages, loans (housing personal, educational etc) on the assets side.

Also some of the other services offered are of credit cards, depository servicesetc.

Todays retail banking sector is comprised of 3 basic characteristics MultipleProducts: (deposits, credit cards, insurance etc), Multiple Channels ofDistribution: (call centre, branch, internet etc), Multiple Customer Groups:(consumers, small businesses etc)

Retail banking in India is not a new phenomenon. It has always been present inIndia in various forms. For the last few years it has been very popular with themainstream banking for many banks. The typical products being offered in theIndian retail banking segment are housing loans, consumption loans for purchaseof durables, auto loans etc. The loans are being marketed under different

brand names to differentiate the products offered by other banks. In recent pastretail lending has been a key profit driver for banks.

While new generation private sector banks have been able to create a niche inthis regard, the public sector banks are also not lagging behind. Banks areleveraging their vast branch network and outreach, public sector banks haveaggressively tried to grab a larger slice of the retail pie. By internationalstandards however there is still much scope for retail banking in India. Retailloans constitute around 8-9% of GDP in India vis--vis about 35% of other Asianeconomies.

Still Indian retail banking has grown to a larger extent. What we need to see isthat what have been the drivers of retail banking in India. First being that ofeconomic prosperity and consequent increase in purchasing power has given aconsumer boom. Second, changing consumer demographics, indicate vastpotential for growth in consumption. India is one of the countries having highestproportion (70%) of the population below 35 years of age. Third, technologicalfactors play a major role. Convenience banking in the form of debit cards,internet, phone banking, anywhere and anytime banking have attracted a lot ofpeople in the banking field. Technological innovations relating to the use ofcredit/debit cards, ATMs phone banking etc have all contributed to the growth of


13/104

retail banking in India. Fourth, treasury income of the banks which havestrengthened the bottom lines of the bank in the past years have been on adecline. In such a scenario, retail business provides a good vehicle of profitmaximization.

Indian retail banking grew by a phenomenal 44.4% in 2005-06 to touch Rs 3,538billion. This growth has been despite the increase in risk weight by RBI forHousing and Real estate loans. Housing constitutes around 52% of all retailloans; it grew at a robust 44.35% during 2005-06. In 2005 the total asset size ofthe Indian retail banking industry grew at a rate of 120% to $66 billion. The retailbanking industry in India is expected to reach a value of $300 billion by 2010.

There is a need for constant innovation in retail banking. Banks now need to useRetail as a growth trigger. This requires product innovation, development,differentiation, prudent pricing, technological upgradation, cost reduction andcross-selling. While retail banking offers phenomenal opportunities for growth, the

challenges are equally important to watch. How far the retail banking is able tolead growth of the Indian banking industry in future would depend upon banks tomeet the challenges and make use of the opportunities profitably. However thekind of technology used and the efficiency of operations would provide the muchneeded competitive edge for success in retail banking business. Furthermore inall this, customers needs, expectations and convenience is of great importance.The banking sector in India is catering this and demonstrating continuousinnovation in Retail Banking and would continue to do so with theeconomy moving at a faster pace. Retail banking would change in a largerperspective and banks would need to prepare themselves for a better RetailBanking platform.


14/104

RESEARCH METHODOLOGY


15/104

What is research?

Research in common parlance refers to the search for knowledge. It is a

scientific and a systematic search for pertinent information on a specific topic.According to Advanced Learners Dictionary, meaning of research is a carefulinvestigation or inquiry especially through search for new facts in any branch ofknowledgeResearch methodology is a way to systematically solve the research problem. Itmay be understood as a science of studying haw research is done scientifically.

Objective of the study:

To know the working of the bank.

To study the different products and services offered under retailbanking.

To check the customer awareness and their satisfaction.

To be well conversant with value added services.

To gain insight of customer attitude towards various investment optionsavailable.

Type of research:

Exploratory

Descriptive

Sample size: 150

Methods of data collection:

Observation Method

Questionnaire

LIMITATIONS


16/104

As the sample size considered for the research was 150, it was notpossible to draw accurate conclusions.

Due to the limited availability of time, the study had been done on a

small scale which increases the chances for misinterpretations.

Reluctance of people in taking active participation due to lack ofinterest.

Sampling errors is another limitation.

Lack of availability of data due to paucity of time.


17/104

History of Banking in India


18/104

Without a sound and effective banking system in India it cannot have a healthyeconomy. The banking system of India should not only be hassle free but itshould be able to meet new challenges posed by the technology and any otherexternal and internal factors.

For the past three decades India's banking system has several outstandingachievements to its credit. The most striking is its extensive reach. It is no longerconfined to only metropolitans or cosmopolitans in India. In fact, Indian bankingsystem has reached even to the remote corners of the country. This is one of themain reason of India's growth process.

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

Not long ago, an account holder had to wait for hours at the bank counters for

getting a draft or for withdrawing his own money. Today, he has a choice. Goneare days when the most efficient bank transferred money from one branch toother in two days. Now it is simple as instant messaging or dial a pizza. Moneyhave become the order of the day.

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

Early phase from 1786 to 1969 of Indian Banks Nationalization of Indian Banks and up to 1991 prior to Indian banking

sector Reforms. New phase of Indian Banking System with the advent of Indian Financial &Banking Sector Reforms after 1991.

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

PHASE 1

The General Bank of India was set up in the year 1786. Next came Bank ofHindustan and Bengal Bank. The East India Company established Bank ofBengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) asindependent units and called it Presidency Banks. These three banks wereamalgamated in 1920 and Imperial Bank of India was established which startedas private shareholders banks, mostly Europeans shareholders.

In 1865 Allahabad Bank was established and first time exclusively by Indians,Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore.Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda,Canara Bank, Indian Bank, and Bank of Mysore were set up. Reserve Bank ofIndia came in 1935.


19/104

During the first phase the growth was very slow and banks also experiencedperiodic failures between 1913 and 1948. There were approximately 1100 banks,mostly small. To streamline the functioning and activities of commercial banks,the Government of India came up with The Banking Companies Act, 1949 which

was later changed to Banking Regulation Act 1949 as per amending Act of 1965(Act No. 23 of 1965). Reserve Bank of India was vested with extensive powers forthe supervision of banking in India as the Central Banking Authority.

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

PHASE2

Government took major steps in this Indian Banking Sector Reform afterindependence. In 1955, it nationalized Imperial Bank of India with extensivebanking facilities on a large scale especially in rural and semi-urban areas. Itformed State Bank of India to act as the principal agent of RBI and to handlebanking transactions of the Union and State Governments all over the country.

Seven banks forming subsidiary of State Bank of India was nationalized in 1960on 19th July, 1969, major process of nationalization was carried out. It was theeffort of the then Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial

banks in the country were nationalized.

Second phase of nationalization Indian Banking Sector Reform was carried out in1980 with seven more banks. This step brought 80% of the banking segment inIndia under Government ownership.

The following are the steps taken by the Government of India to RegulateBanking Institutions in the Country:

1949: Enactment of Banking Regulation Act. 1955: Nationalisation of State Bank of India.

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

After the nationalization of banks, the branches of the public sector bank Indiarose to approximately 800% in deposits and advances took a huge jump by11,000%.


20/104

Banking in the sunshine of Government ownership gave the public implicit faithand immense confidence about the sustainability of these institutions.

PHASE3

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

The country is flooded with foreign banks and their ATM stations. Efforts arebeing put to give a satisfactory service to customers. Phone banking and netbanking is introduced. The entire system became more convenient and swift.Time is given more importance than money.The financial system of India has shown a great deal of resilience. It is sheltered

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

Nationalization of Banks in India

The nationalization of banks in India took place in 1969 by Mrs. Indira Gandhi thethen prime minister. It nationalized 14 banks then. These banks were mostlyowned by businessmen and even managed by them.

Central Bank of India Bank of Maharashtra Dena Bank Punjab National Bank Syndicate Bank Canara Bank Indian Bank Indian Overseas Bank

Bank of Baroda Union Bank Allahabad Bank United Bank of India UCO Bank Bank of India

Before the steps of nationalizations of Indian banks, only State Bank of India(SBI) was nationalized. It took place in July 1955 under the SBI Act of 1955.
http://finance.indiamart.com/investment_in_india/central_bank_india.htmlhttp://finance.indiamart.com/investment_in_india/punjab_national_bank.htmlhttp://finance.indiamart.com/investment_in_india/canara_bank.htmlhttp://finance.indiamart.com/investment_in_india/indian_overseas_bank.htmlhttp://finance.indiamart.com/investment_in_india/allahabad_bank.htmlhttp://finance.indiamart.com/investment_in_india/united_bank_india.htmlhttp://finance.indiamart.com/investment_in_india/bank_of_india.htmlhttp://finance.indiamart.com/investment_in_india/central_bank_india.htmlhttp://finance.indiamart.com/investment_in_india/punjab_national_bank.htmlhttp://finance.indiamart.com/investment_in_india/canara_bank.htmlhttp://finance.indiamart.com/investment_in_india/indian_overseas_bank.htmlhttp://finance.indiamart.com/investment_in_india/allahabad_bank.htmlhttp://finance.indiamart.com/investment_in_india/united_bank_india.htmlhttp://finance.indiamart.com/investment_in_india/bank_of_india.html


21/104

Nationalization of Seven State Banks of India (formed subsidiary) took place on19th July, 1960.

The State Bank of India is India's largest commercial bank and is ranked one ofthe top five banks worldwide. It serves 90 million customers through a network of9,000 branches and it offers -- either directly or through subsidiaries -- a widerange of banking services.

The second phase of nationalisation of Indian banks took place in the year 1980.Seven more banks were nationalised with deposits over 200 crores. Till this year,approximately 80% of the banking segment in India were under Governmentownership.

After the nationalisation of banks in India, the branches of the public sector banksrose to approximately 800% in deposits and advances took a huge jump by11,000%.

1955: Nationalization of State Bank of India. 1959: Nationalization of SBI subsidiaries. 1969: Nationalization of 14 major banks. 1980 : Nationalization of seven banks with deposits over 200 crores

Major Banks in India


22/104

ABN-AMRO Bank Abu Dhabi Commercial

Bank

American Express Bank Andhra Bank Allahabad Bank Bank of Baroda Bank of India Bank of Maharastra Bank of Rajasthan Bank of Ceylon BNP Paribas Bank Canara Bank Catholic Syrian Bank Central Bank of India China Trust Commercial

Bank Citi Bank City Union Bank Corporation Bank Dena Bank Deutsche Bank

Development CreditBank Dhanalakshmi Bank Federal Bank HDFC Bank HSBC ICICI Bank IDBI Bank

Indian Bank

Indian Overseas Bank IndusInd Bank ING Vysya Bank Jammu & Kashmir Bank

JPMorgan Chase Bank Karnataka Bank Karur Vysya Bank Laxmi Vilas Bank Oriental Bank of Commerce Punjab National Bank Punjab & Sind Bank Scotia Bank South Indian Bank Standard Chartered Bank State Bank of India (SBI) State Bank of Bikaner &

Jaipur State Bank of Hyderabad State Bank of Patiala State Bank of Indore State Bank of Mysore State Bank of Saurastra State Bank of Travancore

Syndicate Bank Taib Bank UCO Bank Union Bank of India United Bank of India United Bank Of India United Western Bank AXIS Bank

Vijaya Bank

TRENDS IN INDIAN BANKING
http://finance.indiamart.com/investment_in_india/abn_amro.htmlhttp://finance.indiamart.com/investment_in_india/abu_dhabi_commercial_bank.htmlhttp://finance.indiamart.com/investment_in_india/abu_dhabi_commercial_bank.htmlhttp://finance.indiamart.com/investment_in_india/abu_dhabi_commercial_bank.htmlhttp://finance.indiamart.com/investment_in_india/amex_bank.htmlhttp://finance.indiamart.com/investment_in_india/andhra_bank.htmlhttp://finance.indiamart.com/investment_in_india/allahabad_bank.htmlhttp://finance.indiamart.com/investment_in_india/bank_of_baroda.htmlhttp://finance.indiamart.com/investment_in_india/bank_of_india.htmlhttp://finance.indiamart.com/investment_in_india/bank_of_maharastra.htmlhttp://finance.indiamart.com/investment_in_india/bank_of_rajasthan.htmlhttp://finance.indiamart.com/investment_in_india/bank_of_ceylon.htmlhttp://finance.indiamart.com/investment_in_india/bnp_paribas_bank.htmlhttp://finance.indiamart.com/investment_in_india/canara_bank.htmlhttp://finance.indiamart.com/investment_in_india/catholic_syrian_bank.htmlhttp://finance.indiamart.com/investment_in_india/central_bank_india.htmlhttp://finance.indiamart.com/investment_in_india/china_trust_commercial_bank.htmlhttp://finance.indiamart.com/investment_in_india/china_trust_commercial_bank.htmlhttp://finance.indiamart.com/investment_in_india/china_trust_commercial_bank.htmlhttp://finance.indiamart.com/investment_in_india/citi_bank.htmlhttp://finance.indiamart.com/investment_in_india/city_union_bank.htmlhttp://finance.indiamart.com/investment_in_india/corporation_bank.htmlhttp://finance.indiamart.com/investment_in_india/dena_bank.htmlhttp://finance.indiamart.com/investment_in_india/deutsche_bank.htmlhttp://finance.indiamart.com/investment_in_india/development_credit_bank.htmlhttp://finance.indiamart.com/investment_in_india/development_credit_bank.htmlhttp://finance.indiamart.com/investment_in_india/dhanalakshmi_bank.htmlhttp://finance.indiamart.com/investment_in_india/federal_bank.htmlhttp://finance.indiamart.com/investment_in_india/hdfc_bank.htmlhttp://finance.indiamart.com/investment_in_india/hsbc_bank.htmlhttp://finance.indiamart.com/investment_in_india/icici_bank.htmlhttp://finance.indiamart.com/investment_in_india/idbi.htmlhttp://finance.indiamart.com/investment_in_india/indian_bank.htmlhttp://finance.indiamart.com/investment_in_india/indian_overseas_bank.htmlhttp://finance.indiamart.com/investment_in_india/indusind_bank.htmlhttp://finance.indiamart.com/investment_in_india/ing_vysya_bank.htmlhttp://finance.indiamart.com/investment_in_india/jammu_and_kashmir_bank.htmlhttp://finance.indiamart.com/investment_in_india/jpmorgan_chase_bank.htmlhttp://finance.indiamart.com/investment_in_india/karnataka_bank.htmlhttp://finance.indiamart.com/investment_in_india/karur_vysya_bank.htmlhttp://finance.indiamart.com/investment_in_india/laxmi_vilas_bank.htmlhttp://finance.indiamart.com/investment_in_india/oriental_bank_commerce.htmlhttp://finance.indiamart.com/investment_in_india/punjab_national_bank.htmlhttp://finance.indiamart.com/investment_in_india/punjab_sind_bank.htmlhttp://finance.indiamart.com/investment_in_india/scotia_bank.htmlhttp://finance.indiamart.com/investment_in_india/south_indian_bank.htmlhttp://finance.indiamart.com/investment_in_india/standard_chartered_bank.htmlhttp://finance.indiamart.com/investment_in_india/state_bank_india.htmlhttp://finance.indiamart.com/investment_in_india/state_bank_bikaner_and_jaipur.htmlhttp://finance.indiamart.com/investment_in_india/state_bank_bikaner_and_jaipur.htmlhttp://finance.indiamart.com/investment_in_india/state_bank_of_hyderabad.htmlhttp://finance.indiamart.com/investment_in_india/state_bank_of_indore.htmlhttp://finance.indiamart.com/investment_in_india/state_bank_of_mysore.htmlhttp://finance.indiamart.com/investment_in_india/state_bank_of_saurastra.htmlhttp://finance.indiamart.com/investment_in_india/state_bank_of_travancore.htmlhttp://finance.indiamart.com/investment_in_india/syndicate_bank.htmlhttp://finance.indiamart.com/investment_in_india/taib_bank.htmlhttp://finance.indiamart.com/investment_in_india/uco_bank.htmlhttp://finance.indiamart.com/investment_in_india/union_bank_india.htmlhttp://finance.indiamart.com/investment_in_india/united_bank_of_india.htmlhttp://finance.indiamart.com/investment_in_india/united_bank_india.htmlhttp://finance.indiamart.com/investment_in_india/united_western_bank.htmlhttp://finance.indiamart.com/investment_in_india/uti_bank.htmlhttp://finance.indiamart.com/investment_in_india/vijaya_bank.htmlhttp://finance.indiamart.com/investment_in_india/abn_amro.htmlhttp://finance.indiamart.com/investment_in_india/abu_dhabi_commercial_bank.htmlhttp://finance.indiamart.com/investment_in_india/abu_dhabi_commercial_bank.htmlhttp://finance.indiamart.com/investment_in_india/amex_bank.htmlhttp://finance.indiamart.com/investment_in_india/andhra_bank.htmlhttp://finance.indiamart.com/investment_in_india/allahabad_bank.htmlhttp://finance.indiamart.com/investment_in_india/bank_of_baroda.htmlhttp://finance.indiamart.com/investment_in_india/bank_of_india.htmlhttp://finance.indiamart.com/investment_in_india/bank_of_maharastra.htmlhttp://finance.indiamart.com/investment_in_india/bank_of_rajasthan.htmlhttp://finance.indiamart.com/investment_in_india/bank_of_ceylon.htmlhttp://finance.indiamart.com/investment_in_india/bnp_paribas_bank.htmlhttp://finance.indiamart.com/investment_in_india/canara_bank.htmlhttp://finance.indiamart.com/investment_in_india/catholic_syrian_bank.htmlhttp://finance.indiamart.com/investment_in_india/central_bank_india.htmlhttp://finance.indiamart.com/investment_in_india/china_trust_commercial_bank.htmlhttp://finance.indiamart.com/investment_in_india/china_trust_commercial_bank.htmlhttp://finance.indiamart.com/investment_in_india/citi_bank.htmlhttp://finance.indiamart.com/investment_in_india/city_union_bank.htmlhttp://finance.indiamart.com/investment_in_india/corporation_bank.htmlhttp://finance.indiamart.com/investment_in_india/dena_bank.htmlhttp://finance.indiamart.com/investment_in_india/deutsche_bank.htmlhttp://finance.indiamart.com/investment_in_india/development_credit_bank.htmlhttp://finance.indiamart.com/investment_in_india/development_credit_bank.htmlhttp://finance.indiamart.com/investment_in_india/dhanalakshmi_bank.htmlhttp://finance.indiamart.com/investment_in_india/federal_bank.htmlhttp://finance.indiamart.com/investment_in_india/hdfc_bank.htmlhttp://finance.indiamart.com/investment_in_india/hsbc_bank.htmlhttp://finance.indiamart.com/investment_in_india/icici_bank.htmlhttp://finance.indiamart.com/investment_in_india/idbi.htmlhttp://finance.indiamart.com/investment_in_india/indian_bank.htmlhttp://finance.indiamart.com/investment_in_india/indian_overseas_bank.htmlhttp://finance.indiamart.com/investment_in_india/indusind_bank.htmlhttp://finance.indiamart.com/investment_in_india/ing_vysya_bank.htmlhttp://finance.indiamart.com/investment_in_india/jammu_and_kashmir_bank.htmlhttp://finance.indiamart.com/investment_in_india/jpmorgan_chase_bank.htmlhttp://finance.indiamart.com/investment_in_india/karnataka_bank.htmlhttp://finance.indiamart.com/investment_in_india/karur_vysya_bank.htmlhttp://finance.indiamart.com/investment_in_india/laxmi_vilas_bank.htmlhttp://finance.indiamart.com/investment_in_india/oriental_bank_commerce.htmlhttp://finance.indiamart.com/investment_in_india/punjab_national_bank.htmlhttp://finance.indiamart.com/investment_in_india/punjab_sind_bank.htmlhttp://finance.indiamart.com/investment_in_india/scotia_bank.htmlhttp://finance.indiamart.com/investment_in_india/south_indian_bank.htmlhttp://finance.indiamart.com/investment_in_india/standard_chartered_bank.htmlhttp://finance.indiamart.com/investment_in_india/state_bank_india.htmlhttp://finance.indiamart.com/investment_in_india/state_bank_bikaner_and_jaipur.htmlhttp://finance.indiamart.com/investment_in_india/state_bank_bikaner_and_jaipur.htmlhttp://finance.indiamart.com/investment_in_india/state_bank_of_hyderabad.htmlhttp://finance.indiamart.com/investment_in_india/state_bank_of_indore.htmlhttp://finance.indiamart.com/investment_in_india/state_bank_of_mysore.htmlhttp://finance.indiamart.com/investment_in_india/state_bank_of_saurastra.htmlhttp://finance.indiamart.com/investment_in_india/state_bank_of_travancore.htmlhttp://finance.indiamart.com/investment_in_india/syndicate_bank.htmlhttp://finance.indiamart.com/investment_in_india/taib_bank.htmlhttp://finance.indiamart.com/investment_in_india/uco_bank.htmlhttp://finance.indiamart.com/investment_in_india/union_bank_india.htmlhttp://finance.indiamart.com/investment_in_india/united_bank_of_india.htmlhttp://finance.indiamart.com/investment_in_india/united_bank_india.htmlhttp://finance.indiamart.com/investment_in_india/united_western_bank.htmlhttp://finance.indiamart.com/investment_in_india/uti_bank.htmlhttp://finance.indiamart.com/investment_in_india/vijaya_bank.html


23/104

Indian Banking Industry - Overview

The main objective of the Indian Banking Sector reforms of the 1990s was tohave a good and efficient financial system. As the new economy now continuesto grow much higher, new demands are placed on the Banking industry. Higher

growth is contributing to increase in higher income categories households andthis has led to higher consumption thus ultimately leading to more demand forfinancial savings. On the production side, industrial production has accelerated ,trade has increased in terms of exports thus leading to a lot of investmentdemand in this area. Thus higher consumer demand and production demand hasled banks to bring new and new products and innovate continuously and producemore customized products thereby increasing competition in the sector. If Indianbanks have to sustain such high demand pressures it has to expand bothorganically and inorganically. Looking at the global banking scenario only 22banks figure in the top list of top 1000 banks and only 5 in the top list of 500banks. Though banking in India has changed a lot, it has shown signs of

transformation whereby it can feature in the top rung of banks. The loan book ofthe banks has increased tremendously and also the credit has exceeded thedeposit growth. What has been the heartening feature of the Indian bankingsystem is that the loan expansion was broadbased including corpoarte,agriculture, retail, and the SME sector.

Indian banks have also realized that with organic growth there is a need to growinorganically as well, to be competitive with other players in the market. For e.g.State Bank if India, Indias largest bank has acquired 76% stake in the KeynianBank, Giro Commercial Bank. ICICI Bank, Bank if India, Bank of Baroda havealso followed the same route. Even nationally banks like Bank if Punjab has been

merged with Centurion Bank to form HDFC BANKLtd, Ganesh Bank has alsobeen merged with Federal Bank. Many such instances have started growing inthe Indian banking industry thereby giving signals that inorganic growth isimportant to compete and sustain in the Indian banking industry. To meet thesechallenges of growing through inorganic growth and Indian banks going global,banks have started following international norms. There has been increasedtransparency in the system. The use of technology in the banking industry haschanged things a lot, thus creating faster processes, addressing customerproblems in a more efficient way etc. India has also compiled with all the CorePrinciples of Effective Banking Supervision of the Basel Committee. The roadmapfor adoption of Basel II is also under formulation.

In brief, in the current banking system there are around 222 commercial banks inIndia operating with more than 68,000 branches (as per March 2006). Also thesize of the Banking industry has gone up over 6 times from Rs 5984 bn in 1995 toover Rs 36,105 bn in 2006. Banks have been supporting the growth in theeconomy by financing productive sectors. The Indian banking system is thus in atransition phase and public sector banks still dominate the Indian banking system.Banks are also in the process of consolidating their position and also capitalizingon the strength of their huge networks and customer bases. Overall the banking
http://welingkarblogs.com/vish/2007/03/09/indian-banking-industry-overview/http://welingkarblogs.com/vish/2007/03/09/indian-banking-industry-overview/


24/104

system is currently changing on a massive phase with the system moving from ascene of large number of small banks to small number of large banks.

Banking in the New Millennium

We're living in a world dominated by the new idea economy, ticking to the beat ofInternet time, where customers are quality conscious, time conscious and priceconscious. Technology is creating new agile players making the existing onesobsolete. In this scenario, the role of internet and its impact on banking stillappears to be a puzzle. Banks around the world are subject to the same radicalchanges -new competition, technology, deregulation, and globalization. But,eventually, the classic rules of business will reassert themselves in this virtualenvironment and the winners will be the first and best movers.

The challenges in this millennium for the banking industry are enormous. The

technology and Banking sector reforms together are lifting the competitiveintensity of the Banking business. In Banking, embedding knowledge intoproducts can enhance value, and connecting different knowledge sources cancreate innovative products. The banks that are first to market with the right mix oftechnologies, strategies and partnerships would be the sure winners.

The banking environment worldwide is undergoing massive transformation.Despite the, not so favorable, market sentiments and an apparent backlashagainst dotcoms, serious players in established industries like banking, remainconvinced that the Internet will have a profound impact on the banking sector.

Coming home, Indian banking sector has come a long way from being a sleepybusiness institution to a highly proactive and dynamic entity. Indian bankingsystem is in the midst of a technological revolution. It is impacting the Indianindustry in three ways - firstly, by providing efficient and effective deliverychannels, secondly, it is dramatically influencing the client profile, which in turnleads to the third change i.e. the Human Resources Management. As a servicesector, it calls for a change in the attitude of the personnel that would have asalutary effect on customers.

Indian Banking that was operating in a highly comfortable and protectedenvironment till the beginning of 1990s has been pushed into the choppy waters

of intense competition. Mergers and acquisitions, have been heating up in thenew private banking sector since the HDFC-Times Bank merger came through inNovember 1999. The deal shook an otherwise placid Indian banking world andgenerated a kind of pressure on banks to shake hands with their peers to cope upwith the competition.

Going forward, the premium valuations of private banks compared to publicsector banks depend on their ability to maintain high earnings growth and qualityof assets. The current downturn in the economic activity could result in theincrease of non-performing assets for most of the banks. The winner in the


25/104

market would be the one who can sustain the high growth in business withoutcompromising the asset quality.

In this millennium, banks should strive to achieve significant increases in theirproductivity, efficiency, and profitability. The areas of challenges that lie ahead for

the Indian banking sector would be: Restructuring and Reorganizing banks'setup, leaner offices, merging and forging of strategic alliances to take advantageof the geographic spread of branch network of banks, develop new products andservices that would meet the emerging needs of customers and professionalizingmanagement structures that would be responsive to the changes in the businessenvironment.

E-banking: The New Age Banking

Technology innovation and fierce competition among existing banks haveenabled a wide array of banking products and services, being made available to

retail and wholesale customers through an electronic distribution channel,collectively referred to as e-banking. The integration of e-banking applicationswith legacy systems implies an integrated risk management approach for allbanking activities of a banking institution. Latest recommendations of Baslecommittee recognise that each bank's risk profile is different and requires atailored risk mitigation approach appropriate for the scale of e-bankingoperations, the materiality of the risks present and the willingness and ability ofthe institution to manage their risks. This implies that a "one size fits all" approachto e-banking risk management issues may not be appropriate.

Banks have traditionally been in the forefront of harnessing technology to improve

products and efficiency. Technology is altering the relationships between banksand its internal and external customers. Technology has also eroded the entrybarriers faced by many industries. With one time investment, technology hasbrought about superior products and channel management with a special focuson customer relationship. The incremental costs incurred for expansion anddiversification are also more beneficial.

The major driving force behind the rapid spread of e-banking is its acceptance asan extremely cost effective delivery channel. But on the flip side, it is associatedwith risks such as reputation risk, security risk, cross-border risk and strategicrisk, which are unique to e-banking. Banks need to have an effective disaster

recovery plan along with comprehensive risk management system in place totackle the problems. An effective risk management tool is significant not only tothe bank but also to the banking system as a whole. All these issues underscorethe importance of sound supervisory policies and a high level of international co-operation among the bank regulators. The Basle Committee on BankingSupervision has taken the lead in this area through the creation of its ElectronicBanking Group - a group comprising 17 central banks and bank supervisoryagencies in the late 1999. The main focus of this group has been to developsound risk management practices.


26/104

Internet has created plenty of opportunities for players in the banking sector.While the new entrants have the advantage of latest technology, the good-will ofthe established banks gives them a special opportunity to lead the online world.By merely putting existing services online won't help the banks in holding theircustomers close. Instead, banks must learn to capitalize their customers' different

online financial-services relationships.

E-banking players.

Today, Malaysian commercial banks have the privilege of advanced and efficientdelivery channels for their products and services. This includes automated tellermachines (ATMs), automated self-banking channels such as the BSNCommercial Bank's Electronic Banking Center (EBC) and Phileo Allied Bank'svirtual kiosks and PC-banking. One unique feature that differentiates Malaysiafrom other countries is the responsible role played by the government. In order toencourage consumers to embrace information technology, the Malaysian

government is allowing a deduction of RM500 (US $ 130) from taxable incomeson every computer purchased, thereby setting a trend for others to follow.

Retail Banking: The `Stars

Retail banking is undergoing dramatic changes. The old relationship betweenbanks and customers is changing. Changing business models, cost relations,customer relations, deregulation, convergence of economic and monetarypolicies, globalization of financial markets and systems, incessant introduction ofnew products and services, more discerning, more demanding and less loyalcustomers are a few of the important change drivers.

As the players in the market adapt themselves to tougher competition ahead,they have to alter their product mix, delivery channels and corporate structure toserve their functional role. Some of the banking activities that are deemed veryappropriate today were considered inappropriate, difficult and òut of policypronouncement of central banks' in the past. To quote one example, housingfinance and consumer durable loans that are very personal in nature, wereconsidered ìnflationary' and were discouraged by banks some 15 years back.

But today the situation is different. Similarly in future, banks may have to servecustomers by bundling certain financial services that are not currently combinedor they may merge banking services with non-banking services such as tickets to

concerts, sporting events, vacation planning and the like. Thus the market willredefine the roles and banks have to gear themselves up for a fierce competition.

Retail banking is gaining importance with the changing customer preferences.Customers are seeking products and services that help them simplify and takecontrol of their lives. The greatest challenge for the retail banks will be to provideÀnytime, Anywhere, banking' to retain their customers. Unless they penetratedeep into the retail market today, their survival will be jeopardized. Distributionchannel, human resources, technology, operation, etc., are the key areas, wheretransformation is needed for banks to become a leader in retailing business.


27/104

Retail banking in India is experiencing a fierce competition as the foreign, privateand public sector banks are competing with one another to expand theirrespective market share. Leading banks are now adopting product-centric andchannel-centric models to penetrate the market. With the increasing competition,customer service is becoming the key factor for differentiation.

Impact of Internet on retail banking also plays a vital role. Credit card issuershave greeted the Internet revolution with a sense of profound feeling ofopportunity and a vague feeling of dread as well. The competition is heating upbetween the on-line start-ups and the traditional credit card issuers. While thestart-ups have the advantage of state- of-the art technology, the conventionalissuers have their brand names, good customer base and economies of scale totheir advantage. But to survive in the virtual world, banks have no choice but toestablish an on-line presence quickly and decisively

Banking Sector: Current Trends

The Banking industry is currently undergoing dramatic global change at a rapidpace. This section gives a picture of the current scenario of the banking sector.

Financial stability has always been an integral concern of central banks. Theimportance of this has been reminded by the events of the recent years. TheSouth-East Asian crisis and the collapse of the high profile Barrings bank calls foran effective risk management system. The New Basle Accord is one suchattempt. The New Basle Accord with its three pillar-minimum capital requirement,supervisory review processes and market discipline is aimed at developing risk

sensitive standards in the banking industry. But this Accord seems to have runinto controversy right from the day one. The new framework if accepted wouldprovide incentives for banks to enhance the risk measurement and managementcapabilities.

In recent years, credit derivatives have evolved as major risk management tools.It was the new international rules of the Basle Accord, 1988 that brought creditderivatives into existence. Banks seeking to reduce their exposure and relatedrisk-based capital requirement to corporate credit have found derivatives to bemore efficient than securitization. The future of credit derivatives seems to bevery rosy. With the improvement in technology, brilliant research work in various

financial institutions and the accumulation of significant knowledge on creditexperience and analysis, credit derivatives are positioned as powerful product.

Coming home, the Indian banking industry has come a long way from being asleepy business institution to a highly proactive and dynamic entity. Theliberalization and economic reforms have largely brought about thistransformation. The entry of private banks has revamped the services andproduct portfolio of nationalized banks. With efficiency being the major focus, theprivate banks are leveraging on their strengths. To compete with the privatebanks, the public sector banks are now going in for major image changes and


28/104

customer friendly schemes. "The Banking Sector- Coming Challenges" is acommentary on the Indian banking sector, which is facing tremendous internaland external challenges in this transitory phase.

Over the years, the Co-operative Banks have played an important and useful role

in the financial and social upliftment of the non-creamy segments of the society.They have expanded by leaps and bounds over the past decade. Co-operativebanks are under the dual control of RBI and the respective state's Registrar ofCo-operative Societies. This dual control has been a source of great criticism.Investigations by RBI has brought to light the fact that Madhavpura MercantileCo-operative Bank (MMCB), abused the system in three ways: diversion of funds,massive exposure to one particular broker and the pay order scam. RBI hasunearthed a string of co-operative banks, exposed to the stock market throughthe pay order route. Unfortunately, RBI has demonstrated its ability better as aninvestigator than as a 'policeman'. The multi-crore MMCB scam, which rocked thefaith of thousands of trusted investors shows how regulators, negligence canaffect the whole system. If not checked and controlled, this weak link between theregulators and banks would bring down the whole system. The paper "Co-operative Banks-Colluding for a Crisis", highlighting the MMCB episode, narratesthe plight of the co-operative banks.


29/104

COMPANY PROFILE

HDFC BANK is a new generation private sector bank, offers a wide spectrum ofretail, SME and corporate banking products and services. It has been among theearliest banks to offer a technology-enabled customer interface that provideseasy access and superior customer service.


30/104

HDFC BANK has a nationwide reach through its network of 500 branches and1200ATMs. The bank aims to serve all the banking and financial needs of itscustomers through multiple delivery channels, each of which is supported bystate-of-the-art technology architecture.

The shares of the bank are listed on the major stock exchanges in India and alsoon the Luxembourg Stock Exchange.

Among HDFC BANK's greatest strengths is the fact that it is a professionallymanaged bank with a globally experienced and capable management team. Theday-to-day operations of the bank are looked after by Mr.Aditya Puri, ManagingDirector assisted by a senior management team, under the overall supervisionand control of the Board of Directors.

MANAGEMENT TEAM

Mr. Rana Talwar - Chairman


31/104

Mr. Shailendra Bhandari - Managing Director and CEO

Mr. Tejbir Singh - Executive Director

Mr. Vivek Vij - Head Retail Banking

Mr. Anil Jaggia - Chief Operating Officer

Mr. Ashokan - Head Corporate Banking

Ms. Tarini Vaidya - Head Treasury

Ms. Shalaka Gadekar - Head Human Resource

VISION MISSION VALUES

VISION:

We will be Indias most respected and admired financial services brand. We are passionate about creating magic in peoples lives through

personalized service and partnering them in realising their dreams.


32/104

We will achieve this by demonstrating the highest levels of Integrity,delivering consistently superior performance and creating value for ouremployees, customers, shareholders and the communities we work andlive in.

MISSION:

To be a respected, nationwide, full service bank with a focus on the growthsegments of the economy

To be leaders in our chosen segments, committed to excellence in all wedo

To be customer centric, creating a wow experience through personalizedservice

To build strong relationships with our employees, our customers and ourshareholders

To be of service to the community in which we work and live in.

VALUES:

1. Integrity... Walk the talk

2. Teamwork... One team one dream

3. Customer Centricity... Serving the frontline

4. Passionate Ownership... Energy in action

5. Excellence ... Being the best

FINANCIAL HIGHLIGHTS OF HDFC BANK


33/104


34/104

PROFIT & LOSS ACCOUNT

(Rupees in Crores)

Mar`03 Mar`04 Mar`05 Mar`06 Mar`07

Income12mths

12mths

12mths

12mths

12mths

Interst earned 371.34 333.79 346.09 803.2 1268.53

Other Income 92.08 88.34 134.95 398.24 442.13

Total income 463.42 422.13 481.04 1201.44 1710.66

Expenditure

Interst expended 269.3 203.82 168.21 404.44 698.95

Employee cost 24.82 31.29 42.7 142.43 221.31

Selling and Admin Expenses 85.01 113.39 146.75 308.9 427.54

Depreciation 48.75 36.14 29.73 51.48 56.97

Miscellaneous Expenses 60.9 142.63 68.54 206.39 184.51

Preoperative Exp Capitalised 0 0 0 0 0Operating Expenses 172.43 181.15 220.74 537.49 741.04

Provision and Contingencies 47.05 142.3 66.98 171.71 149.29

Total Expenses 488.78 527.27 455.93 1113.64 1589.28

Mar`03 Mar`04 Mar`05 Mar`06 Mar`0712mths

12mths

12mths

12mths

12mths

Net Profit for a year -25.36 -105.14 25.11 87.8 121.38

Extra ordionary Items -9.9 129.41 0 0 0

Profit brought forward -120.4 -155.66 -131.39 -121.39 73.72

Total -155.66 -131.39 -106.28 -33.59 195.1

Preference Dividend 0 0 0 0 0Equity Dividend 0 0 0 0 0

Corporate Dividend Tax 0 0 0 0 0

Per share data (annualised)

Earning per share (Rs.) 0 0 0.25 0.62 0.77


35/104

BALANCE SHEET


36/104

BUSINESS SEGMENTS OF HDFC BANK

TREASURY

CORPORATEBANKING

INVESTMENTBANKING

RETAILBANKING

BUSINESSSEGMENTS


37/104

Retail Banking.

HDFC BANKoffers following products and services in retail banking:

Retail Assets:

Personal Loans: Competitive interest rates with high dependability and

quick assistance in meeting all your personal requirements.

Two Wheeler Loans: Super fast loans with competitive interest ratesand superior features.

Property Loans: We offer Home Loans / Commercial Property Loans /Overdraft against property / Loan against property.

Commercial Vehicle / Construction Equipment Loans: We areone of the oldest players in this segment.

Miracle Credit Cards:Participate in a huge initiative for underprivileged children. A Miraclehappens when you get the card as well as when you use it! Earn seva pointson your spends on the Miracle Card, which will be contributed to adoptingunderprivileged children Gurujis dream. All this by just using a credit cardas you normally would. The card is free for life, has an amazingly lowinterest rate of 0.99% (for first 6 months) and you can enjoy 0 % interest rateon balance transfer for the first 3 months.

Free for life Credit Card

Initial contribution of Rs. 50/- for underprivileged children.Earn Seva Points on your Spends to help underprivileged children.0.99% interest rate for 6 months.0% interest rate on Balance Transfer.

Retail Liability


38/104

Current Account: There are 4 types of Current Accounts which offersservices ranging from Free anywhere banking, Quick outstation collections,Free Internet Banking, Current account with free fund transfers, FreeMuliticity Cheque, Free DD/ POs on HDFC BANK and non HDFC BANKlocations and much more. *

Savings Bank Account: We offer 4 types of Savings Bank accountswith many features like Unlimited cash withdrawal Free at other bank

ATMs, Muliticuty Cheque Books, Free Internet Banking and much more*

Fixed Deposits: We offer attractive interest rate of 8.5% on FixedDeposits and for senior Citizens we offer interest rate as high as 8.75%*

NRE Account: It will give your family access to operate your account andenjoy the best of convenient features and benefits such as Free Gold DebitCard to main applicant and joint mandate holders, Free Multicity Chequebook, Free SMS alerts, Free Money Transfer and Internet Banking.evenwhile you are away.

Wealth Management Products

Insurance:We offer life Insurance products through a tie-up with AvivaLife Insurance for total security, risk protection, long term savings andretirement planning. We also offer General Insurance through a tie up withICICI Lombard General Insurance.

Mutual Funds: We are having tie up with more than 25 Fund houses andoffer research based Mutual Fund products with superior post tax returnsand customized investment options.

Portfolio Management services: We offer complete financialplanning as per your need and risk appetite and offer advice according toyour investment priorities.

Other services provided by HDFC BANK:

Demat AccountE-BrokingIPO FundingPrepaid Gift CardVisa Money TransferUtility Bill Payments


39/104

Corporate Banking

HDFC BANK offers following products and services in Corporate Banking.

Corporate and SME: We offer an entire range of client-centric bankingsolutions and services to Corporate and SME customers.

Treasury: HDFC BANKhas a fully equipped, high tech treasury, which hasseparate trading desks for foreign exchange & domestic markets. The tradingdesks are supported by state of the art software platforms. We have onlineconnectivity to the entire branch network to effect instantaneous funds transfer.

Financial, Institutional & Govt.Group: We offer tailor made financialsolutions that include Liability, Asset and Services related products to PublicSector Undertakings, Central and State Government Boards, Government

Departments, Cooperative Banks and Financial Institutions

Trade Finance: Following are our range of Trade related services for theexporter and importer:

Export Trade Finance Import Trade Finance Domestic Trade Finance Remittance Services Foreign Exchange Services

Channel Finance: A unique working capital facility to dealers / distributors ofestablished corporate without disturbing current banking arrangements

Cash Management Services : HDFC BANK offers Cash managementServices under the name "'Cash & Transaction Services'' (CATS) a servicespecially designed to suit your every business need, whether it is for Chequecollection or making payments at various locations.

This service is fully supported by a framework of V-Sat and leased line

connectivity with all our countrywide network of branches and through specificinter-linkages with carefully selected correspondent banks. Presently we have243 branches covering 112 locations and a correspondent bank tie-up with 14major banks covering more than 3000 locations for collections and 700 locationsfor payments.


40/104


41/104

INTRODUCTION TO RETAIL BANKING

What is retail banking?

Retail banking is typical mass-market banking where individualcustomers use local branches of larger commercial banks. Servicesoffered include: savings and checking accounts, mortgages, personal

loans, debit cards, credit cards, and so forth.

Types of retail banks Commercial bank has two possible meanings:

o Commercial bank is the term used for a normal bank to distinguish itfrom an investment bank. (After the great depression, the U.S.Congress required that banks only engage in banking activities,whereas investment banks were limited to capital markets activities.This separation is no longer mandatory.)

o Commercial bank can also refer to a bank or a division of a bankthat mostly deals with deposits and loans from corporations or largebusinesses, as opposed to normal individual members of the public(retail banking).

Community development bank are regulated banks that providefinancial services and credit to underserved markets or populations.

Private banks manage the assets of high net worth individuals.o Offshore banks are banks located in jurisdictions with low

taxation and regulation. Many offshore banks are essentially privatebanks.

Savings bank accept savings deposits.o Postal savings banks are savings banks associated with

national postal systems.
http://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Branch_(banking)http://en.wikipedia.org/wiki/Savingshttp://en.wikipedia.org/wiki/Checkinghttp://en.wikipedia.org/wiki/Mortgagehttp://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Debit_cardhttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Commercial_bankhttp://en.wikipedia.org/wiki/Community_development_bankhttp://en.wikipedia.org/wiki/Private_bankhttp://en.wikipedia.org/wiki/Offshore_bankhttp://en.wikipedia.org/wiki/Savings_bankhttp://en.wikipedia.org/wiki/Savingshttp://en.wikipedia.org/w/index.php?title=Postal_savings_bank&action=edithttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Branch_(banking)http://en.wikipedia.org/wiki/Savingshttp://en.wikipedia.org/wiki/Checkinghttp://en.wikipedia.org/wiki/Mortgagehttp://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Debit_cardhttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Commercial_bankhttp://en.wikipedia.org/wiki/Community_development_bankhttp://en.wikipedia.org/wiki/Private_bankhttp://en.wikipedia.org/wiki/Offshore_bankhttp://en.wikipedia.org/wiki/Savings_bankhttp://en.wikipedia.org/wiki/Savingshttp://en.wikipedia.org/w/index.php?title=Postal_savings_bank&action=edit


42/104

RETAIL BANKING PRODUCTS

RETAIL BANKING

PRODUCTS

LIABILITIES ASSETS INVESTMENTS

SAVINGS A/C

CURRENT A/C

FIXED DEPOSIT

DEMAT A/C

PERSONAL LOAN

PROPERTY LOAN

TWO-WHEELER LOAN

AUTO LOANS

CONSTRUCTION

EQUIPMENT LOAN

COMMERCIAL VEHICLE

LOAN

CREDIT CARDS

CHANNNEL FINANCING

MUTUAL FUNDS

LIFE INSURANCE

GENERAL INSURANCE

E-BROKING


43/104

LIABILITIES

SAVINGS A/C:

At HDFC BANK, they believe in making a customers life simple. They understandexactly how valuable our time is. Precisely why they've developed a savings bankaccount with a host of options to take care of our money and ensure that it grows.

Establishing one of India's largest network of branches among private banks, theirstate-of-the-art technology combined with perfect banking expertise provides us withthe best banking experience. Integrating each branch through satellite technology toimplement their innovative services.

HDFC BANKmeets our every requirement. Because when it's for the customers,nothing less than the best is good enough.

TYPES OF SAVINGS A/C

Regular Savings Account

Savings Plus Account

Savings Max Account

Kids Advantage Account

Pension Savings Account

No Frills Account

BENEFITS OF SAVINGS A/C

INTERNET BANKING: Access your account anywhere / anytimethrough Internet banking Service. These services allow you to view youraccount balance, view and print statements, transfer funds betweenaccounts all at the click of a mouse.

ANYWHERE BANKING: The instant you become a customer ofHDFC BANK, you have the luxury of accessing your Savings Bank

Account from any of our branches spread across the country. Whetheryour transactions involve withdrawals, deposits or even a statement of


44/104

account, HDFC BANKs ready to do your bidding. Furthermore, there areno restrictions on withdrawal amounts

FAST COLLECTION OF CHEQUES: Our state-of-the-art networkfacilitates quick credit of your cheques. So now, your Savings Bank

Account receives the credit within 7 working days. In addition, we also

have a facility to collect your cheques from any place in India. DEMAND DRAFTS AT 150 CENTRES: HDFC BANK world of

convenience ensures that you no longer need to wait for your demanddrafts. Simply leave your instructions at your branch and pick your demanddraft in the shortest possible time.

EXTENDED WORKING HOURS:We've kept our doors open beyondoffice hours. Banking work need not wait until tomorrow anymore.

INSTANT BANKERS CHEQUE:Effect the payment that you want inthe minimum time required. Our banker's cheques are provided on order.

CURRENT A/C:

At HDFC BANK, They aim to give your business the cutting edge. Using theirnationwide network, their state-of-the-art technology, and sprightly attitude, toprovide you the best banking experience.

They have put together one of the largest network of branches among privatebanks in India to be at arm's reach wherever you are. They've integrated eachbranch through satellite technology, to effect your transactions in a flash. Theyhave chalked out a wide range of schemes and services, so your business getsyour kind of banking support.

At HDFC BANK, they believe one size never fits all. They thus designed andtailor-made their Current Account schemes to suit your requirements. They takepride in being able to provide what you need. In providing nothing less than thebest. Because when it's for you, nothing less than the best is good enough.

TYPES OF BUSINESS A/Cs

REGULAR

SILVER

SILVER PLUS

GOLD

DIAMOND

PARTICULARS NAME OF ACCOUNT

REGULAR SILVER SILVERPLUS

GOLD DIAMOND

MINIMUMAVERAGE RS.10,000/- Rs.25,000/- Rs.50,000/- Rs.1,00,000/- Rs.5,00,000/-


45/104

QUARTERLYBALANCEREQUIREDNON-MAINTAINANCECHARGE(QUARTERLY)

Less than 50% ofAQB

Rs.1,110/-Rs.1,110/- Rs.2750/- Rs.4,400/-

LESS THANRs.1,00,000/-

Rs.6,600/-

Above 50% less than100% of AQB

Rs.830/- Rs.1,110/- Rs.2,750/-

ABOVERs.1,00,000/-LESS THANRs.5,00,000/-AQB-Rs.4.400/-

BENEFITS OF CURRENT A/C

ANYWHERE BANKING:At HDFC BANK, you're not a customer ofjust one branch. You have within arm's reach, our nationwide spread ofbranches willing to address your banking needs. All you need is anaccount with any one of our branches, and the entire HDFC BANKmachinery is at your service. What's more, we've made sure there are norestrictions on withdrawal amounts. And you can obtain a balance

statement and make enquiries at any branch.

MULTI-CITY CHEQUES: Need to send payments from one city toanother? No problem. For select customers, HDFC BANK gives the facilitythat enables one to issue cheques, pay cash at any of our wide network ofbranches

INSTANT REMITTANCES: It takes us virtually no time to transferfunds from your account, to any of our branches. This is child's play for us

and takes less than a minute. FAST COLLECTION OF CHEQUES: Trust the HDFC BANK

network, to realize quick credit of your cheques. Your account receivescredit from Metros within five working days. If you desire, we would alsocollect your cheques from any major town/city in India. You may check out

our valued added collection system for customized collectionservices.

QUICK HIGH VALUE CLEARING:Your high-value cheques (Rs. 1,00,000 and above within a certain area) deposited at our main branches inMetro towns are credited the same day by 4.00 p.m.

CASH DELIVERY/ CASH PICK UP: We deliver cash up to Rs 1,00,000 at your doorstep. Just call us. This facility is available at select
http://www.centurionbop.co.in/services/cats.html


46/104

centres. Cash Pick up services are available at metro locations on aselective basis on charge basis.

INSTANT BANKERS CHEQUE: Whenever you need to issueBankers Cheques/ Pay Orders, we provide instant banker's cheques onrequest.

DEMAND DRAFTS AT 150 CENTRES:With HDFC BANK at yourside, there's no more waiting for demand drafts. Just ask us to issuedemand drafts on more than 150 centres across the country.

FIXED DEPOSIT:

The deposits at Rs.148, 637 million grew 58% over those in 2006. The cost ofdeposits for the year ended March 31, 2007 at 5.6% increased due to thechanges in the interest rate environment. The low cash deposits (CASA) for thebank stood at 31%.

SPECIAL FEATURES OF DEPOSITS:

ATTRACTIVE INTEREST RATES

FLEXIBLE TENURES

AUTO RENEWAL FACILITY

OVERDRAFT AGAINST FIXED DEPOSITS

NOMINAL FACILITY

CURRENT INTEREST RATES FOR DOMESTIC DEPOSIT (% P.A.)W.e.f. 7th March, 2007

Maturity Slab Less thanRs.15,00,000/-

Senior Citizens

Depositrate p.a.

EffectiveYield p.a.

Depositrate p.a.

EffectiveYield p.a.

7 - 14 days 5.00 % -- 5.50 % --

15 - 30 days 5.50 % -- 6.00 % --31 - 60 days 5.75 % -- 6.25 % --

61 - 90 days 6.00 % -- 6.50 % --

91 - 180 days 6.75 % -- 7.25 % --

181- 270 days 7.75 % 7.83 % 8.25 % 8.34 %

271 - 364 days 8.00 % 8.16 % 8.50 % 8.68 %

1 yr 1 day 3 years 9.75 % 10.11 % 10.05 % 10.44 %

3 yrs 1 day to less 8.50 % 9.57 % 9.00 % 10.20 %


47/104

than 5 yrs

5 yrs and above 8.50 % 10.46 % 9.00 % 11.21 %

DEMAT A/C What is a depository?

A depository can be compared to a bank. A depository holdssecurities (like shares, debentures, bonds, GovernmentSecurities, units etc.) of investors in electronic form. Besidesholding securities, a depository also provides services relatedto transactions in securities. In India at present we have twodepositories NSDL & CD

How can I avail the service of a depository?

A depository interfaces with the investors through its agents called DepositoryParticipants (DPs). If an investor wants to avail the services offered by thedepository, the investor has to open an account with a Depository Participant.HDFC BANKis depository participant for NSDL & CDSL.

What are the facilities offered by HDFC BANK DepositoryServices?

HDFC depository offers the following facilities: -

Opening of demat account.

Dematerialization i.e., converting physical certificates to electronic form. Dematerialization i.e., conversion of securities in demat form into physical

certificates Pledging/Hypothecation of dematerialized securities against bank loan Electronic credit of securities allotted in public issues, rights issue Receipt of non-cash corporate benefits such as bonus in electronic form Freezing of demat accounts, so that the debits from the account are not

permitted Nomination facility for demat accounts Services related to change of address Effecting transmission of securities

Account monitoring facility over Internet through "easi" facility (foraccounts at CDSL only)

Other facilities viz. holding debt instruments in the same account , availingstock lending/borrowing facility, etc. electronic settlement of trades in stockexchanges connected to NSDL/ CDSL


48/104

BENEFITS OF DEPOSITORY SYSTEM

Elimination of bad deliveries

In the depository environment, once holdings of an investor are

dematerialized, the question of bad delivery does not arise i.e. they cannotbe held "under objection". In the physical environment, buyer was requiredto take the risk of transfer and face uncertainty of the quality of assetspurchased. In a depository environment good money certainly begets goodquality of assets.

Elimination of all risks associated with physical certificatesDealing in physical securities have associated security risks of theft ofstocks, mutilation of certificates, loss of certificates during movementsthrough and from the registrars, thus exposing the investor to the cost ofobtaining duplicate certificates and advertisements, etc. This problem does

not arise in the depository environment.

No stamp duty For transfer of any kind of securities in the depository.This waiver extends to equity shares, debt instruments and units of mutualfunds.

Faster settlement cycle The exclusive demat segments follow rollingsettlement cycle of T+3 i.e. the settlement of trades will be on the 3rdworking day from the trade day. This will enable faster turnover of stockand more liquidity with the investor.

Faster disbursement of non cash corporate benefits likerights, bonus, etc.

Depository provides for direct credit of non cash corporate entitlements toan investors account, thereby ensuring faster disbursement and avoidingrisk of loss of certificates in transit.

Reduction in brokerage by many brokers for trading indematerialized securities

Brokers provide this benefit to investors as dealing in dematerializedsecurities reduces their back office cost of handling paper and alsoeliminates the risk of being the introducing broker.


49/104

ASSETS

TWO WHEELER LOANS Purpose: Finance for motorcycles, scooters & scooterettes.

Persons eligible:

Income: You need a Gross Annual Income of just Rs. 42,000/- for SelfEmployed and for Salaried Rs.54,000/- (Metro) and Rs.42,000 (Non Metro)

Age: You should be between 21 to 60 years of age. Margin:

Government employees: 15-20%Agriculturists : 30%Others : 25%

Tenure:Minimum: 12 months

Maximum: 36 months

PERSONAL LOANS LOAN AMOUNT: ..

Salaried:Minimum:Rs75000/-

Maximum:for salaried Gold - Rs.10 Lacsfor salaried Non Gold - Rs.3 Lacs

Self-employed:Minimum: Rs75000/-Maximum:Rs. 10 Lacs (Rs. 15 Lacs for SEP and SENP BT)

TENURE: Minimum: 12 monthsMaximum: 60 months

INTEREST RATES:As applicable from time to time PERSONS ELIGIBLE: INCOME:

Salaried: GROSS Rs. 75,000 per annumSelf-employed (Professionals/Non Professionals): Gross income Rs. 1,00,000 (ITR)

AGE:Self employed: Minimum - 21 years and Maximum - 65 yearsSalaried: Minimum - 24 years and Maximum - 58 years


50/104

CREDIT CARD (MIRACLE)

WHAT IS A CREDIT CARD?

A credit card is a system ofpayment named after the smallplastic card issuedto users of the system. A credit card is different from a debit card in that it doesnot remove money from the user's account after every transaction. In the caseof credit cards, the issuer lends money to the consumer(or the user). It is alsodifferent from a charge card (though this name is sometimes used by the publicto describe credit cards), which requires the balance to be paid in full eachmonth. In contrast, a credit card allows the consumer to 'revolve' their balance,at the cost of having interest charged. Most credit cards are the same shapeand size, as specified by the ISO 7810 standard.

FEATURES:

International Acceptance

Service Charges for Revolving Credit1.25% FOR FIRST 6 MONTHS3.15% AFTERWARDS

Balance Transfer Rate3.15% AFTERWARDS0% FOR 3 MONTHS

Access to 24-Hour Customer Care Centre

EMI on Call facility Global Emergency Assistance Services

Surcharge on Fuel (2.5%)2.5% of transaction value or Rs 10 whichever is higher (0% surcharge at selectHPCL pumps on transaction value upto Rs 3000).

Forex and Travel Cheque Services

Free Credit Period (Applicable provided the Total payment dueshown in the previous statement is settled in full)Minimum: 22 daysMaximum: 52 days

Revolving Credit facility

CONSTRUCTION EQUIPMENT LOAN

When you bank with HDFC BANK, you always find more time on your hands.Unlike other banks, our one-table clearance scheme gives you the convenienceof completing all formalities within the comfortable confines of your home oroffice.
http://en.wikipedia.org/wiki/Paymenthttp://en.wikipedia.org/wiki/Plastichttp://en.wikipedia.org/wiki/Plastichttp://en.wikipedia.org/wiki/Debit_cardhttp://en.wikipedia.org/wiki/Moneyhttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Charge_cardhttp://en.wikipedia.org/wiki/Credit_card_interesthttp://en.wikipedia.org/wiki/ISO_7810http://en.wikipedia.org/wiki/Paymenthttp://en.wikipedia.org/wiki/Plastichttp://en.wikipedia.org/wiki/Debit_cardhttp://en.wikipedia.org/wiki/Moneyhttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Charge_cardhttp://en.wikipedia.org/wiki/Credit_card_interesthttp://en.wikipedia.org/wiki/ISO_7810


51/104

FEATURES:

EASY FINANCE:HDFC BANKoffers you finance for a wide range of Construction Equipments of allmanufacturers, be it Excavators, Vibratory rollers, Compactors, or Cranes Etc. You

can avail upto 75 % finance on the Asset Value You can avail these speedy andhassle free loans with simple documentation and competitive rates of interest,combined with a speedy turnaround time. All of this absolutely no service charge orprocessing fee of any kind (excepting Stamp duty charges wherever applicable)

QUICK DELIVERY:

HDFC BANKalso organises the delivery of the construction equipment of yourchoice through a vast network of dealers.

DOCUMENTATION REQUIRED:

(Individuals/ Proprietorship Firms)

1. Balance sheet and profit & loss account duly certified / attested byChartered Accountant for last 2 years.

2. Copies of Income tax return and computation of income tax for the last 2years.

3. Copy of work orders / contracts.4. Signature verification from bank.5. Proof of address / residence.

CUSTOMIZED SCHEMES:

The bank has designed an array of financial schemes that cater to your businessrequirements. And with the flexibility that each scheme offers, you can get afinance option custom made to best suit your need.

The extensive branch network linked by satellite technology, enables you tomanage your receivables and payables easily all across the country.

REFINANCE

Need Working Capital. You can avail Refinance from us on your old ConstructionEquipments which are registered with RTO.

FLEXIBLE REPAYMENTS:

When it comes to repaying your loan, we offer you absolute freedom to pay back in

1, 2 or 3 years, at your convenience through post dated cheques.


52/104

COMMERCIAL VEHICLE LOANS

HDFC BANKalso organises the delivery of the commercial vehicle of your choicethrough a vast network of dealers.

FEATURES:

Easy FinanceHDFC BANKoffers you finance for a wide range of Commercial Vehicles of allmanufacturers, be it LCV, MCV or a HCV.You can avail upto 100 % finance onthe Chassis cost .For Special Purpose Vehicles (SPVs) finance on the Body unit/Tanker unit could be considered. You can avail these speedy and hassle freeloans with simple documentation and competitive rates of interest, combined witha speedy turnaround time. All of this absolutely no service charge or processingfee of any kind (excepting Stamp duty charges wherever applicable).

Quick DeliveryWhen you bank with HDFC BANK, you always find more time on your hands.

Unlike other banks, our one-table clearance scheme gives you the convenience ofcompleting all formalities within the comfortable confines of your home or office.

Flexible RepaymentsWhen it comes to repaying your loan, we offer you absolute freedom to pay back

in 1, 2 or 3 years, at your convenience through post dated cheques.

Customised Schemes

The bank has designed an array of financial schemes that cater to your businessrequirements. And with the flexibility that each scheme offers, you can get afinance option custom made to best suit your need. Our extensive branch networklinked by satellite technology, enables you to manage your receivables andpayables easily all across the country.

Refinance

Need Working Capital. You can avail Refinance from us on your old CommercialVehicles

Documentation

Individuals/ Proprietorship Firms:

1. Balance sheet and profit & loss account duly certified / attested byChartered Accountant for last 2 years.


53/104

2. Copies of Income tax return and computation of income tax for the last 2years.

3. Copy of work orders / contracts.4. Signature verification from bank.5. Proof of address / residence.

6. Telephone numbers of office / residence.

1. Partnership Firms: Balance sheet and profit & loss account duly certified /attested by Chartered Accountant for the last 2 years.Copy of work orders /contracts.

2. Copy of partnership deed.3. Authority letter to sign the agreement on behalf of the firm.

Private / Public Limited Companies:

1. Balance sheet and profit & loss account duly certified / attested by

Chartered Accountant for last 2 years.2. Memorandum and Articles of Association.3. Copy of work orders / contracts.4. Board resolution.

*Notes:

1. All loans at the sole discretion of HDFC BANK.2. All taxes and statutory charges as applicable.3. Payment through post dated cheques.

PROPERTY LOANS

HOME LOANS

Loans upto Rs. 50 Lakhs

Maximum tenure: 25 years

Special pre-approved loans for existing customers

Loans available to Individuals, Firms, Private Limited Companies

Also available for NRIs and Merchant Navy personnel

No-income proof scheme available

Loan available for new as well as resale properties Pre-payment Charges-No fees on part pre-payment-No pre-payment allowed in first 6 months-On closure before 5 years, 1.5% of original Loan amount-On closure between 5-10 years, 0.75% of original Loan amount-No pre-payment charges after

copy of summer training project[1]

Documents