hdfc capstone

7/31/2019 Hdfc Capstone

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History

HDFC Bank was incorporated in 1994 by Housing Development Finance Corporation

Limited (HDFC), India's largest housing finance company. It was among the first

companies to receive an 'in principle' approval from the Reserve Bank of India (RBI) to

set up a bank in the private sector. The Bank started operations as a scheduled

commercial bank in January 1995 under the RBI's liberalization policies.

Times Bank Limited (owned by Bennett, Coleman & Co. / Times Group) was merged

with HDFC Bank Ltd., in 2000. This was the first merger of two private banks in India.

Shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of

Times Bank.

In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total branches to

more than 1,000. The amalgamated bank emerged with a base of about Rs. 1,22,000

crore and net advances of about Rs.89,000 crore. The balance sheet size of the

combined entity is more than Rs. 1,63,000 crore.

HDFC Bank Limited (BSE: 500180, NSE: HDFCBANK, NYSE: HDB) is an Indian

financial services company that was incorporated in August 1994. HDFC Bank is the

fifth or sixth largest bank in India by assets and the second largest bank by market

capitalization as of February 24, 2012. The bank was promoted by the Housing

Development Finance Corporation, a premier housing finance company (set up in 1977)

of India. HDFC Bank has 1,986 branches and over 5,471 ATMs, in 996 cities in India,and all branches of the bank are linked on an online real-time basis. As of 30

September 2008 the bank had total assets of Rs.1006.82 billion. For the fiscal year

2010-11, the bank has reported net profit of 3,926.30 crore (US$783.3 million), up

33.1% from the previous fiscal. Total annual earnings of the bank increased by 20.37%

reaching at 24,263.4 crore (US$4.84 billion) in 2010-11.]HDFC Bank is one of the Big
http://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/w/index.php?title=Times_Bank&action=edit&redlink=1http://en.wikipedia.org/wiki/Centurion_Bank_of_Punjabhttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=500180http://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=HDFCBANK&section=7http://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://www.nyse.com/about/listed/quickquote.html?ticker=hdbhttp://en.wikipedia.org/wiki/Financial_servicehttp://en.wikipedia.org/wiki/Market_capitalizationhttp://en.wikipedia.org/wiki/Market_capitalizationhttp://en.wikipedia.org/wiki/Housing_Development_Finance_Corporationhttp://en.wikipedia.org/wiki/Housing_Development_Finance_Corporationhttp://en.wikipedia.org/wiki/Assetshttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/HDFC_Bank#cite_note-3http://en.wikipedia.org/wiki/HDFC_Bank#cite_note-3http://en.wikipedia.org/wiki/HDFC_Bank#cite_note-3http://en.wikipedia.org/wiki/Big_Four_%28banks%29#Indiahttp://en.wikipedia.org/wiki/Big_Four_%28banks%29#Indiahttp://en.wikipedia.org/wiki/HDFC_Bank#cite_note-3http://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Assetshttp://en.wikipedia.org/wiki/Housing_Development_Finance_Corporationhttp://en.wikipedia.org/wiki/Housing_Development_Finance_Corporationhttp://en.wikipedia.org/wiki/Market_capitalizationhttp://en.wikipedia.org/wiki/Market_capitalizationhttp://en.wikipedia.org/wiki/Financial_servicehttp://www.nyse.com/about/listed/quickquote.html?ticker=hdbhttp://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=HDFCBANK&section=7http://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=500180http://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/Centurion_Bank_of_Punjabhttp://en.wikipedia.org/w/index.php?title=Times_Bank&action=edit&redlink=1http://en.wikipedia.org/wiki/Reserve_Bank_of_India


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

Bank.

MISSION

HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build

sound customer franchises across distinct businesses so as to be the preferred provider

of banking services for target retail and wholesale customer segments, and to achieve

healthy growth in profitability, consistent with the bank's risk appetite. The bank is

committed to maintain the highest level of ethical standards, professional integrity,

corporate governance and regulatory compliance. HDFC Bank's business philosophy is

based on four core values - Operational Excellence, Customer Focus, Product

Leadership and People.

HDFC Banks mission is to be a world class Indian bank by adopting a single minded

focus on service excellence and product quality. The Bank has adopted industry leading

best practices in establishing a set of operating principles which govern how risks of a

significant business disruption are mitigated to protect the Banks customers, employees

and stakeholders. The Bank has a robust and well defined business continuity program

which comprises of policies and procedures with clearly defined roles, responsibilities

and ownership for Crisis Management, Emergency Response, Business recovery and

IT Disaster Recovery Planning. The Banks BCP steering committee, represented bythe senior executive management of the Bank, approves and oversees the annual BCP

Strategy and road map. Regular drills and tests are conducted to cover all aspects of

the Business Continuity Plan. Plans are reviewed and maintained regularly to

incorporate any changes to environment, people, process and technology. The Banks

Business Continuity Office continuously works towards strengthening the business
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continuity preparedness of the Bank. The Bank's Business continuity program is

developed to manage the impact of significant disruptions and will endeavor to resume

business and operations to an acceptable level within a reasonable time in the event of

a disaster. While the recovery time objectives (RTO) have been defined and

documented in the plans, various external factors beyond our control could affect the

actual recovery time.

The Banks business continuity plan is in line with the guidelines issued by regulatory

bodies and is subject to regular internal, external and regulatory reviews.


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Managing Director Aditya Puri

ExecutiveDirector Paresh Sukhthankar

Executive Director Harish Engineer

Chairman Jagdish Kapur

Equities and Private Banking and NRI

Business

Abhay Aima

Information Technology and Legal Anil Jaggia

Treasury Ashish Parthasarthy

Merchant Services Bharat Shah

Audit and Compliance G Subramanyam

Credit and Market Risk Kaizad Maneck Bharucha

Human Resources Administration and

Infrastructure

Mandeep Maitra

Branch Banking Navin Puri

Assets and Credit Cards Pralay Mondal

Retail Liabilities,Marketing and Direct

Banking Channels

Rahul N Bhagat

Operations Rajan Ananthanarayan

Finance Shashi Jagdishan


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MANAGEMENT

Mr. C.M. Vasudev has been appointed as the Chairman of the Bank with effect from 6th

July 2010. Mr. Vasudev has been a Director of the Bank since October 2006. A retired

IAS officer, Mr. Vasudev has had an illustrious career in the civil services and has heldseveral key positions in India and overseas, including Finance Secretary, Government

of India, Executive Director, World Bank and Government nominee on the Boards of

many companies in the financial sector.

The Managing Director, Mr. Aditya Puri, has been a professional banker for over 25

years, and before joining HDFC Bank in 1994 was heading Citibank's operations in

Malaysia.

The Bank's Board of Directors is composed of eminent individuals with a wealth of

experience in public policy, administration, industry and commercial banking. Senior

executives representing HDFC are also on the Board.

Senior banking professionals with substantial experience in India and abroad head

various businesses and functions and report to the Managing Director. Given the

professional expertise of the management team and the overall focus on recruiting andretaining the best talent in the industry, the bank believes that its people are a

significant competitive strength.

Treasury Sudhir Joshi


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REGISTERED OFFICE

HDFC BANK HOUSE

Senapati Bapat Mart,

Lower Parel,

Mumbai40013

Tel. No. 66521000

Fax No.24960737

Website : www. hdfcbank.com


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Business focus

HDFC Bank deals with three key business segments. - Wholesale Banking Services,

Retail Banking Services, Treasury. It has entered the banking consortia of over 50

corporate for providing working capital finance, trade services, corporate finance, and

merchant banking. It is also providing sophisticated product structures in areas of

foreign exchange and derivatives, money markets and debt trading and equity research.

HDFC bank policy is to charge maximum from customers while providing the same or

less service as compared to other banks. Minimum balance required for saving account

is Rs. 10,000.00 while there are banks in the market like IDBI which provide zerobalance account with far better features from HDFC saving account. Servers on

Saturdays may be down, there is no toll-free number from Delhi-NCR. A demand draft

costs Rs. 75. If you get bank statement from other branch of HDFC, it'll cost you Rs.

110 and chances are you won't be informed about these charges. And if you wish to

close your saving account before a certain period (at present six months), a certain

amount of money will be deducted from your account. Again its very likely that you won't

be informed about such charges during opening of your account.

Wholesale banking services

Blue-chip manufacturing companies in the Indian corp. to small & mid-sized corporates

and agri-based businesses. For these customers, the Bank provides a wide range of

commercial and transactional banking services, including working capital finance, trade

services, transactional services, cash management, etc. The bank is also a leading

provider for its corporate customers, mutual funds, stock exchange members and

banks.
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Retail banking services

HDFC Bank was the first bank in India to launch an International Debit Card in

association with VISA and issues the Mastercard Maestro debit card as well. The Bank

launched its credit card business in late 2001. By March 2009, the bank had a total card

base (debit and credit cards) of over 13 million. The Bank is also one of the leading

players in the merchant acquiring business with over 70,000 Point-of-sale (POS)

terminals for debit / credit cards acceptance at merchant establishments. The Bank is

positioned in various net based B2C opportunities including a wide range of internet

banking services for Fixed Deposits, Loans, Bill Payments, etc. With Finest of

Technology and Best of Man power in Banking Industry HDFC BANK's retail services

have become by and large the best in India and since the contribution to CASA i,e totalnumber of current and savings account of more than 50% ,HDFC BANK has full

potential to become Indias No.1 Private Sector Bank. HDFC Bank website including

hdfcbank.com and hdfcsec.com are not available 24X7. This has become a habit of

HDFC Bank. Customers of the HDFC Bank are requested to check the website

availability 24 X 7 and if available can do the transaction. If the website is not available

they are asked to visit their home branch.

Treasury

Within this business, the bank has three main product areas - Foreign Exchange and

Derivatives, Local Currency Money Market & Debt Securities, and Equities. These

services are provided through the bank's Treasury team. To comply with statutory

reserve requirements, the bank is required to hold 25% of its deposits in government

securities. The Treasury business is responsible for managing the returns and market

risk on this investment portfolio.


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Travellers Cheques : Travellers Cheques are a safe and easy way to protect your money

when you travel. You can encash them only when you need to, and only against your signature,

unlike cash which can be stolen and misused by anybody, immediately.

Credit Card: Credit Card can be used for all your requirements, be it shopping, eating out,

holidaying, fuelling up your vehicle, railway ticket reservations - just about any financial

requirement, planned.

Home loan:Home loans for individual to purchase or construct houses.

Personal Loans: The procedure of personal loan is simple, documentation is minimal and

approval is quick.

Foreign Currency Cash: Foreign Currency Cash is a convenient way of meeting personal

expenses along your journey, paying for taxis / internal travel, food expenses etc.

Foreign Currency Demand Drafts: Demand Drafts are issued in seven currencies like United

States Dollars (USD), Great Britain Pounds (GBP), EURO, Japanese Yen (JPY), Australian

Dollars (AUD), Canadian dollars (CAD) and New Zealand Dollars (NZD).

Foreign Currency Cheque Deposits: We can directly deposit our foreign currency cheques in

to our saving or current account.

Remittances: HDFC Bank offers the remittance facilities by which we can send and receive

money to anyone. They are categorized depending on location and the urgency with which we

want the money transferred.


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Trade Service: HDFC Bank have people with high level of expertise and experience in trade

services to provide services to suit specific requirements and structure solutions for business

needs.

HDFC Bank have 500 branches for trade services.

Mutual funds: Mutual funds are funds that pool the money of several investors to invest in

equity or debt markets.

Insurance: HDFC Bank offers a world of choice in insurance. Like children future plans,

retirements plans, standard life, etc.

BUSINESS MODEL

India is a diverse country with specific local requirements. It has a different ethos and

different risk profile than other regions. Superimposing international business models

that do not always reflect realities on the ground does not often work in India, he says.

Also, quick decisions and getting clearances for new products is critical. Of course, the

rise in Indias prominence has led to a change in attitudes in recent years, but these

issues persist, states Mr Aima, who was with Citi for several yea rs before joining HDFC

Bank in 1995. Foreign players enjoy two critical advantages over domestic banks,

namely global presence and international processes. However, he believes domestic

banks like HDFC Bank are steadily closing the gap.Over the past two years HDFC Bank

has taken its first steps in the global banking arena by setting up branches in Bahrain

and Hong Kong. The main focus of these international offices is to service non-resident

Indian (NRIs), a key target segment. Mr Aima, who is also in-charge of non-resident

Indian and international consumer banking at HDFC Bank, estimates NRIs account for a

quarter of the banks wealth management portfolio. We have several representative

offices across the world, but a number of international products cannot be booked in


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these offices. We realized that in order to offer international products in our product

portfolio, we needed to have a branch presence in our key markets.

HDFC Bank is not in a hurry to grow its international presence, says Mr Aima. Some

banks that have tried to grow their global footprint at a rapid pace have suffered. Ourplan is to expand slowly. First we looked as the Middle East, and now its South-East

Asia. Setting up international branches is not without its challenges. The branch needs

to run like a complete bank with the right processes and regulatory compliances in

place, he says. With the high level of investment required, often the economies of scale

dont work out. Additionally, in a new market, it takes time to establish the brand.


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Aditya Puri-CEO

Bobby Parikh- Director Anami Roy- Director

Sanjay Dongre- ExecutiveVP/Secretary

P. Sukhtankar- Executive

Director

Harish Engineer- Executive

Director

Ashim Samanta- Director

CM Vasudev-Chairman of

the Board


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YEAR 2012:

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

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

2011

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

YEAR 2011:

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

YEAR 2010:

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

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

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

Financial Advisor Bank


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Wealth Forum Advisor Awards 2010

Highest Net Sales - Income Funds

Highest increase in AUM (Equity + Hybrids)

Highest Live SIPs

Highest Live Investor Folios

Highest AUM ( Equity + Hybrids)

Euromoney Private Banking and Wealth Management Poll 2010

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

Avaya Global Connect 2010 - Customer Responsiveness Award - Banking and

Financial Services category

NDTV Business Leadership Awards 2010 - Best Private Sector Bank

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

Dun & Bradstreet Banking Awards 2010

Overall Best Bank

Best Private Sector Bank

Best Private Sector Bank in SME Financing


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

Captains of Finance 2010"

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

Celent's 2010 Banking Innovation Award - Model Bank Award

Financial Insights Innovation Awards 2010 - Innovation in Branch Operations -

Server Consolidated Project

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


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2011-12

Nov 30, 2011Solitaire range of womens Credit Cards launched

Nov 26, 2011 HDFC Bank and Vodafone India launch m-paisa a product for

financial inclusion

Aug 4, 2011 - Leh Branch launched

Aug 2, 2011 Tax payment facility through ATM launched

Aug 2, 2011 Bouquet of premium Travel Credit Cards launched

Jul 12, 2011 - INFINIA Credit Card launched

Apr 27, 2011 - Our 2000th Branch inaugurated at Mangaliya Sadak near Indore

2010-11

Feb 7, 2011 MOU signed with Indian Army for total Salary Solutions

Dec 8, 2010 - Our 5000th ATM launched at Swami Narayan Chowk, Rajkot

Jul 29, 2010 - Our Intensive Rural Campaign launched with 1st Mega Loan Mahotsav in

Pimpalgaon in Maharashtra

May 13, 2010 - First Bank to retail silver bars in India

2009-10

Feb 21, 2010 - Our 4000th ATM launched at Vijay Mahal in Mangalore

Dec 21, 2009: Kanjur Marg Office inaugurated by Mr. Deepak Parekh, HDFC Chairman,

and Mr. Aditya Puri, HDFC Bank MD


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The Bank has its deposit programs rated by two rating agencies - Credit Analysis &

Research Limited (CARE) and Fitch Ratings India Private Limited. The Bank's Fixed

Deposit programme has been rated 'CARE AAA (FD)' [Triple A] by CARE, which

represents instruments considered to be "of the best quality, carrying negligible

investment risk". CARE has also rated the bank's Certificate of Deposit (CD)

programme "PR 1+" which represents "superior capacity for repayment of short term

promissory obligations". Fitch Ratings India Pvt. Ltd. (100% subsidiary of Fitch Inc.) has

assigned the "AAA ( ind )" rating to the Bank's deposit programme, with the outlook on

the rating as "stable". This rating indicates "highest credit quality" where "protectionfactors are very high"

The Bank also has its long term unsecured, subordinated (Tier II) Bonds rated by CARE

and Fitch Ratings India Private Limited and its Tier I perpetual Bonds and Upper Tier II

Bonds rated by CARE and CRISIL Ltd. CARE has assigned the rating of "CARE AAA"

for the subordinated Tier II Bonds while Fitch Ratings India Pvt. Ltd. has assigned the

rating "AAA (ind)" with the outlook on the rating as "stable". CARE has also assigned

"CARE AAA [Triple A]" for the Banks Perpetual bond and Upper Tier II bond issues.

CRISIL has assigned the rating "AAA / Stable" for the Bank's Perpetual Debt

programme and Upper Tier II Bond issue. In each of the cases referred to above, the

ratings awarded were the highest assigned by the rating agency for those instruments.

Corporate Governance Rating

The bank was one of the first four companies, which subjected itself to a Corporate

Governance and Value Creation (GVC) rating by the rating agency, The Credit RatingInformation Services of India Limited (CRISIL). The rating provides an independent

assessment of an entity's current performance and an expectation on its "balanced

value creation and corporate governance practices" in future. The bank was assigned a

'CRISIL GVC Level 1' rating in January 2007 which indicates that the bank's capability


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with respect to wealth creation for all its stakeholders while adopting sound corporate

governance practices is the highest.


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The combined entity would have a nationwide network of 116 branches; a strong

deposit base of around Rs.1,22,000 crores and net advances of around Rs.89,000

crores. The balance sheet size of the combined entity would be over Rs.1,63,000crores.

Merger with Centurion Bank of Punjab Limited(CBoP)

On March 27, 2008, the shareholders of the Bank accorded their consent to a scheme

of amalgamation of Centurion Bank of Punjab Limited with HDFC Bank Limited. The

shareholders of the Bank approved the issuance of one equity share of Rs.10/- each of

HDFC Bank Limited for every 29 equity shares of Re. 1/- each held in Centurion Bank of

Punjab Limited. This is subject to receipt of approvals from the Reserve Bank of India,

stock exchanges and Other requisite statutory and regulatory authorities. The

shareholders Also accorded their consent to issue equity shares and/or warrants

convertible into equity shares at the rate of Rs.1,530.13 each to HDFC Limited and/or

other promoter group companies on preferential basis, subject to final regulatory

approvals in this regard. The Shareholders of the Bank have also approved an increase

in the authorized capital from Rs.450 crores to Rs.550 crores.TIMES BANK

AMALGAMATION

In a milestone transaction in the Indian banking industry, Times Bank Limited (another

new private sector bank promoted by Bennett, Coleman & Co./Times Group) was

merged with HDFC Bank Ltd., effective February 26, 2000. As per the scheme of

amalgamation approved by the shareholders of both banks and the Reserve Bank of

India, shareholders of Times Bank received 1 share of HDFC Bank for every 5.75

shares of Times Bank. The acquisition added significant value to HDFC Bank in terms

of increased branch network, expanded geographic reach, enhanced customer base,

skilled manpower and the opportunity to cross-sell and leverage alternative delivery

channels.


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Recent Developments

18-APR-12

HDFC Bank, one of the leading private sector banks in Inda, has posted a net profit of

Rs 14.53 billion for the quarter ended March 31, 2012 as compared to Rs 11.14 billion

for the quarter ended March 31, 2011, representing an increase of 30.43%.

06-MAR-12

HDFC Bank, the second largest private bank in the country, on Tuesday announced the

launch of `Bharosa Gold Loan`, a product tailor-made for the rural customer. This is an

important step in the Bank

19-JAN-12

HDFC Bank has posted a net profit of Rs 14.29 billion for the quarter ended December

31, 2011 as compared to Rs 10.87 billion for the quarter ended December 31, 2010,

2010, representing an increase of 31.46%.

20-OCT-11

HDFC Bank, one of the largest private sector banks, has posted growth of 31.5% in net

profit to Rs 11.99 billion for the quarter ended Sept. 30, 2011 as against Rs 9.12 billionin the corresponding quarter a year ago. Total income has increased by 37.41% at Rs

79.29 billion for second quarter as against Rs 57.71 billion for same quarter a year ago.

19-OCT-11

HDFC Bank, one of the largest private sector banks, has posted growth of 31.49% in

net profit to Rs 12 billion for the quarter ended Sept. 30, 2011 as against Rs 9.12 billion

in the corresponding quarter a year ago. Total income has increased by 37.41% at Rs

79.29 billion for second quarter as against Rs 57.71 billion for same quarter a year ago.

07-OCT-11

The HDFC Chairman, Deepak Parekh, has expressed disagreement over the present

regulatory thinking on allowing complete waiver of all prepayment charges.


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25-AUG-11

Credit rating agency, Fitch Ratings has affirmed India-based HDFC Bank (HBL)

National Long-Term (LT) Rating at `Fitch AAA(ind)` with a Stable Outlook, and National

Short-Term (ST) Rating at `Fitch A1+(ind)`. HBL`s lower tier 2 debt has also been

affirmed at `Fitch AAA (ind)` based on Fitch`s criteria. A full list of rating actions is given

at the end of this commentary.

08-JUL-11

Housing Development Finance Corporation (HDFC) Bank has posted a net profit of Rs

8.45 billion for the quarter ended June 30, 2011 as compared to Rs 6.95 billion for the

quarter ended June 30, 2010, reflecting increase of 21.58%.

Capital structure

As on 30th June, 2010 the authorized share capital of the Bank is Rs. 550 crore. The

paid-up capital as on said date is Rs. 459,69,07,030/- (45,96,90,703 equity shares of

Rs. 10/- each). The HDFC Group holds 23.63 % of the Bank's equity and about 17.05 %

of the equity is held by the ADS Depository (in respect of the bank's American

Depository Shares (ADS) Issue). 27.45% of the equity is held by Foreign Institutional

Investors (FIIs) and the Bank has about 4,33,078 shareholders.

The shares are listed on the Bombay Stock Exchange Limited and The National Stock

Exchange of India Limited. The Bank's American Depository Shares (ADS) are listed on

the New York Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's Global

Depository Receipts (GDRs) are listed on Luxembourg Stock Exchange under ISIN No

US40415F2002.

On May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC Bank was

formally approved by Reserve Bank of India to complete the statutory and regulatory


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approval process. As per the scheme of amalgamation, shareholders of CBoP received

1 share of HDFC Bank for every 29 shares of CBoP.

The merged entity will have a strong deposit base of around Rs. 1,22,000 crore and net

advances of around Rs. 89,000 crore. The balance sheet size of the combined entity

would be over Rs. 1,63,000 crore. The amalgamation added significant value to HDFC

Bank in terms of increased branch network, geographic reach, and customer base, and

a bigger pool of skilled manpower.

In a milestone transaction in the Indian banking industry, Times Bank Limited (another

new private sector bank promoted by Bennett, Coleman & Co. / Times Group) was

merged with HDFC Bank Ltd., effective February 26, 2000. This was the first merger of

two private banks in the New Generation Private Sector Banks. As per the scheme of

amalgamation approved by the shareholders of both banks and the Reserve Bank of

India, shareholders of Times Bank received 1 share of HDFC Bank for every 5.75

shares of Times Bank.

DISTRIBUTION NETWORK

HDFC Bank is headquartered in Mumbai and has a as of March 31, 2012, the Banks

distribution network was at 2,544 branches and 8,913 ATMs in 1,399 cities as against

1,986 branches and 5,471 ATMs in 996 cities as of March 31, 2011. HDFC Bank is

headquartered in Mumbai. The Bank at present has an enviable network of 2,544

branches spread in 1,399 cities across India. All branches are linked on an online real-

time basis. Customers in over 500 locations are also serviced through Telephone

Banking. The Bank's expansion plans take into account the need to have a presence in

all major industrial and commercial centers where its corporate customers are located

as well as the need to build a strong retail customer base for both deposits and loan

products. Being a clearing/settlement bank to various leading stock exchanges, the


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Bank has branches in the centers where the NSE/BSE has a strong and active

member base.

The Bank also has 8,913 networked ATMs across these cities. Moreover, HDFC Bank's

ATM network can be accessed by all domestic and international Visa/MasterCard, Visa

Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.

GLOBAL NETWORK

HDFC Bank, India's second largest private sector bank is planning to strengthen its

global presence. The bank is looking at countries such as Canada and Singapore to

expand its branch networks abroad. The bank has already applied for licenses in

Bahrain and Hong Kong and currently having a representative office in Dubai.

To fund the global expansion, HDFC Bank also plans to raise $1 billion (about Rs4,000

crore) from overseas markets. The bank would raise fund through different instruments

under the medium-term notes (MTN) program and the first portion of the fund would be raised

in the next 3-4 months.

HDFC Bank today inked an agreement with US-headquartered lender Wells Fargo to

offer remittance services between the two countries.

"The services will be free of cost to begin with," Wells Fargo global remittance services

executive vice-president Daniel Ayala told reporters here, after signing a non-exclusive

pact with the city-based HDFC Bank. In 2011, India became the largest recipient of

remittances with the volume touching around USD 55 billion, driven by a massive drop

in the rupee against the US currency.

After the Middle East, the US with around 35 per cent of the volume share is the largest

point of origin for remittances into the India, Ayala said.

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


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In private sector the basic competition between HDFC , ICICI., Axis Bank, HSBC, Citi

bank . Housing Development Finance Corporation Bank or the HDFC Bank doesnt

have a very old history associated with it but still the bank has gained enough popularity

to be counted among the top 4 banks in India.Its main competitors are State Bank of

India, ICICI Bank and Axis Bank. HDFC got established after the approval of RBI for


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private Banks to be established in the country. Recently HDFC has also taken over the

Centurion Bank of India under its network. This amalgamation has made HDFC even

more powerful and has increased the worth of its assets and the number of its

branches, ATMs and customers.

With 3.15 trillion rupees in assets ($61.8 billion), the bank has been adding almost

2 million customers a year, according to Puri, and has more than doubled lending toconsumers since 2008. HDFC Banks bad-loan ratio was 0.2 percent in the quarter

ended in September, a fourth of ICICI Banks and one-tenth that of State Bank. The

bank doesnt feel left behind in the good times because it does so much better in the

bad times. Higher borrowing costs and a slowdown in economic growth as Indias

central bank ratchets up rates to curb inflation could lead to an increase in bad loans.

And HDFC Bank may face more competition in consumer lending: After a seven-year

hiatus, Indias central bank may issue new banking licenses. Meanwhile, Standard

Chartered, HSBC (HBC), and Citigroup, the foreign banks with the biggest presence in

India, continue to add branches as they target middle- and high-income consumers.

Foreign banks have a combined market share of only 4.9 percent of lending and

4.4 percent of deposits, according to data from the Reserve Bank of India. HSBC, the

second-largest foreign bank in India by number of branches, has had more than five

years of losses in its local retail-lending business in the country and is now operating at

virtually break-even. Following is the financial comparison of banks in India:

Name Last Price Market Cap.

(Rs. cr.)

Net Interest

Income

Net Profit Total Assets

HDFC Bank 512.65 120,379.04 19,928.21 3,926.39 277,352.61
http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=HBChttp://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=HBChttp://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=HBChttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/hdfcbank/HDF01http://www.moneycontrol.com/india/stockpricequote/banksprivatesector/hdfcbank/HDF01http://www.moneycontrol.com/india/stockpricequote/banksprivatesector/hdfcbank/HDF01http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=HBC


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Axis Bank

961.15 39,773.71 21,994.65 4,242.21 242,713.37

Kotak Mahindra 533.55 39,524.06 6,180.24 1,085.05 50,850.66

IndusInd Bank 306.65 14,352.46 5,359.20 802.61 45,635.85

Yes Bank 320.50 11,335.49 6,307.35 976.99 59,007.00

Federal Bank 407.25 6,965.91 4,052.03 587.08 51,456.37

ING Vysya Bank 345.40 5,186.76 3,856.81 456.30 39,013.98

Karur Vysya 390.90 4,189.68 2,217.69 415.59 28,224.84

JK Bank 851.15 4,126.19 3,713.13 615.20 50,508.15

South Ind Bk 22.80 2,584.95 3,583.43 401.65 32,820.21

StanChart IDR 95.00 2,280.00 - - 1,945,725.80

City Union Bank 48.65 1,985.95 1,218.41 215.05 14,591.52

Karnataka Bank 83.35 1,569.49 2,370.84 204.61 31,693.01

DCB 40.65 978.32 536.26 21.43 8,676.84

Lakshmi Vilas 79.70 777.28 1,064.84 101.14 13,301.19

Dhanlaxmi Bank 55.90 475.91 906.42 26.06 14,268.16

Goldman BEES 2,729.60 280.06 - - -
http://www.moneycontrol.com/india/stockpricequote/banksprivatesector/axisbank/AB16http://www.moneycontrol.com/india/stockpricequote/banksprivatesector/axisbank/AB16http://www.moneycontrol.com/india/stockpricequote/banksprivatesector/kotakmahindrabank/KMBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/kotakmahindrabank/KMBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/indusindbank/IIBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/yesbank/YBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/federalbank/FBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/ingvysyabank/INGhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/ingvysyabank/INGhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/karurvysyabank/KVBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/karurvysyabank/KVBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/jammukashmirbank/JKBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/southindianbank/SIBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/standardcharteredplc/SCB01http://www.moneycontrol.com/india/stockpricequote/banksprivatesector/cityunionbank/CUBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/karnatakabank/KB04http://www.moneycontrol.com/india/stockpricequote/banksprivatesector/developmentcreditbank/DCB01http://www.moneycontrol.com/india/stockpricequote/banksprivatesector/developmentcreditbank/DCB01http://www.moneycontrol.com/india/stockpricequote/banksprivatesector/lakshmivilasbank/LVBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/dhanlaxmibank/DB01http://www.moneycontrol.com/india/stockpricequote/banksprivatesector/goldmansachsgoldexchangetradedscheme/GBEhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/goldmansachsgoldexchangetradedscheme/GBEhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/dhanlaxmibank/DB01http://www.moneycontrol.com/india/stockpricequote/banksprivatesector/lakshmivilasbank/LVBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/developmentcreditbank/DCB01http://www.moneycontrol.com/india/stockpricequote/banksprivatesector/karnatakabank/KB04http://www.moneycontrol.com/india/stockpricequote/banksprivatesector/cityunionbank/CUBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/standardcharteredplc/SCB01http://www.moneycontrol.com/india/stockpricequote/banksprivatesector/southindianbank/SIBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/jammukashmirbank/JKBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/karurvysyabank/KVBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/ingvysyabank/INGhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/federalbank/FBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/yesbank/YBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/indusindbank/IIBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/kotakmahindrabank/KMBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/axisbank/AB16


27/28

SWOT Analysis is a strategic planning method used to evaluate the Strengths,

Weaknesses, Opportunities, and Threats involved in a project or in a business venture.

It involves specifying the objective of the business venture or project and identifying the

internal and external factors that are favorable and unfavorable to achieving that

objective. The technique is credited to Albert Humphrey, who led a convention at

Stanford University in the 1960s and 1970s using data from Fortune 500 companies.

STRENGTHS

HDFC is the strongest and most venerable play on Indian mortgages over the

long term. The management of the bank is termed to be one of the best in the

country.

HDFC has differentiated itself from its peers with its diversified network and

revamped distribution strategy

Superior customer service vs. competitors

Large share of low-cost deposits, higher net interest margin

Better quality of assets, NPA of 0.4 per cent

WEAKNESS

High dependence on individual loans.

Major stake held by American financial groups which are under stress due to

economic slowdown.

Customer service staff needs training.

Management cover insufficient.

Sectoral growth is constrained by low unemployment levels and competition for

staff

Marginal international presence

No next line of leadership


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OPPURTUNITIES

Fast growing insurance business in the country.

Untapped rural markets.

Could extend to overseas broadly

Fast-track career development opportunities on an industry-wide basis.

An applied research centre to create opportunities for developing techniques to

provide added-value services.

THREATS

Loss of market share to commercial banks and HFCs

Higher than expected increase in funding cost

Risk of fraud and NPA accretion due to increase in interest rates and fall in

property prices is inherent to the mortgage business

Lack of infrastructure in rural areas could constrain investment.

High volume/low cost market is intensely competitive

Very high competition prevailing in the industry

Extension overseas holds a lot of risk!

Threat from credit card collections dept.

hdfc capstone

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