Hdfc bank 1

PREFACE

This project report is a result of my rigorous and devoted efforts and valuable
guidance of Mr. Ajeet Singh (Assist. Manager) and it is the result of the training in
HDFC bank, it contains brief history of the organization and company’s mission
/objective. The HDFC Bank is a well known name for its valuable services. The
Company is maintaining the quality of the product throughout. I have done my
summer project in HDFC bank, Asuran branch, Gorakhpur, which is the busiest
center of HDFC bank. The focus of the project is overview of the various aspects
of account and its features with respect to the other Private Banks of India. This
project as a summer training is a partial fulfillment of two year MBA Course. In
this project I have strived to include all the details regarding the subject and made
a sincere effort towards completion of the same.

In the course of training I learned various practical aspects of marketing and I
knew about how to conduct a quality market research, what are the advantages and
limitations of the marketing research.

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ACKNOWLEDGEMENT

I will be indebted to Mr. Ajit Singh (Assist. Manager), my project guide, life long
for his guidance and support through out my training at HDFC bank, Asuran
branch. His calm demeanor and willingness to teach has been a great help in
completion of the project. My learning has been immeasurable and working under
him was a great experience. My sincere thanks also extend to all the staffs of
HDFC bank for providing a hospitable and helpful work environment and making
my summer training an exciting and memorable event.

I am also very much thankful to all other teachers and staffs for their kind
assistance at last I am highly obliged to KIPM-COLLEGE OF MANAGEMENT
as a whole for making this experience of summer training in an esteemed
organization like HDFC Bank possible. The learning from this experience has
been immense and would be cherished throughout life.

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TABLE OF CONTENTS

HDFC BANK PROFILE PAGE NO.

 Introduction 6

 Objective mission & Business strategies 7
 Technology 9
 Business segment 10-12
 Organisational Structure (Retail) 13-14
 Business updates 15
 Merger with Centurion Bank of Punjab 16
 Share Analysis 17-20
 Awards & Achievement 21-23
 HDFC code of conduct 24
 Scope 25
 Rational 25
 Literature 25

Project Report
 Executive Summary 26-27
Study of Current and Saving Account of HDFC Bank
 Account & Deposits 28-30
 Purpose & Description 31-33
 Saving Accounts 34
o Saving Regular 35-36
o Saving Plus 37-38
o Saving Mode 39-41

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o Senior Citizen sowing 42-45
o Kinds Advantage 46

 Current Account 48
o Regular current 49-50
o Premium current 51-52
o Trade current 53-54
o Plus current 55-56
o Max current 57-59
o Apex current 60-62
o Flexi current 63-65
 Cards
66-68
o Credit Cards 69-72
o Debit Cards 73-77
o Prepaid Cards 78-80
Comparative Analysis of Current and Saving Account of HDFC Bank with
other Bank
 Objective 81
 Process Methodology 82-86
 Sample Design 87
 Questionnaire 88-90
 Finding & Analysis 91-94
 Satisfaction Level 95-104
 Conclusion 109
 Recommendation 110
 Bibliography 113-115

Annexure
 Financial High Light 116
 Balance Sheet 117
 Profit & Loss Statement 118-119

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 Cash Flow Statement 120-121
 Financial Analysis 122-123

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Profile of HDFC Bank

We understand your world

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INTRODUCTION

HDFC Bank one amongst the firsts of the new generation, tech-savvy commercial
banks of India, was incorporated in August 12 after the Reserve Bank of India
allowed setting up of Banks in the private sector. The Bank was promoted by the
Housing Development Finance Corporation Limited, a premier housing finance
company (set up in 1977) of India. HDFC Bank commenced operations as a
Scheduled Commercial Bank in January 1995.

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

The Managing Director, Mr. Aditya Pun, 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.

Currently HDFC Bank has 1148 branches. 1977 ATMs, in 325 cities in India, and
all branches of the bank are linked on an online realtime basis. Moreover, HDFC
Bank’s ATM network can be accessed by all domestic and international
VisalMasterCard. Visa Electron/Maestro, Plus/Cirrus and American Express
Credit/Charge cardholders. The bank offers many innovative products & services
to individuals, corporate, trusts, governments, partnerships, financial institutions,
mutual funds, insurance companies.

It is a path breaker in the Indian banking sector. In 2007 HDFC Bank acquired
Centurion Bank of Punjab taking its total branches to more than 1,000. Though,

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the official license was given to Centurion Bank of Punjab branches, to continue
working as HDFC Bank branches, on May 23, 2008.

The authorized capital of HDFC Bank is Rs.450 crore (Rs.4.5 billion). The paid-
up capital is Rs.3 11.9 crore (Rs.3 .1 billion). The HDFC Group holds 22.1% of
the bank’s equity and about 19.4% of the equity is held by the ADS Depository (in
respect of the bank’s American.

Depository Shares (ADS) Issue). Roughly 31.3% of the equity is held by Foreign
Institutional Investors (FIIs) and the bank has about 190.000 shareholders.

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Objective mission & Business strategies
HDFC Bank’s mission is to be a World-Class Indian Bank. benchmarking
ourselves against international standards and best practices in terms of product
offerings, technology, service levels, risk management and audit & compliance.
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
 People
Our business strategy emphasizes the following:
 Increase our market share in India’s expanding banking and financial
services industry by following a disciplined growth strategy focusing on
balancing quality and volume growth while delivering high quality
customer service;
 Leverage our technology platform and open scaleable systems to deliver
more products to more customers and to control operating costs;
 Maintain high standards for asset quality through disciplined credit risk
management;
 Develop innovative products and services that attract our targeted
customers and address inefficiencies in the Indian financial sector;
 Continue to develop products and services that reduce our cost of funds;
and

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 Focus on healthy earnings growth with low volatiFity.

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Technology

HDFC Bank operates in a highly automated environment in terms of information
technology and communication systems. All the bank’s branches have online
connectivity, which enables the bank to offer speedy funds transfer facilities to its
customers .Multi-branch is also provided to retail customers through the branch
network and Automated Teller Machines (ATM’s).

The Bank has made substantial efforts and investments in acquiring the best
technology available internationally to build the infrastructure for a world class
bank in terms of software. The corporate banking business is supported by Flex
cube with the retail banking business by Finware, both from i-flex Solutions Ltd.

The systems are open, scale able and web-enabled. The Bank has prioritized its
engagement in technology and the internet as one of its key goals and has already
made significant progress in web-enabling its core businesses. In each of its
businesses, the bank has succeeded in leveraging its market position, expertise and
technology to create a competitive advantage and build market share.

Capital Structure

The authorized capital of HDFC Bank is Rs.. 450 crore (Rs.4.5 Billion).The paid-
up capital is Rs.311.9 crore (Rs.3.1 billion).The HDFC Group holds 22.1% of the
bank’s equity and about 19.4% of the equity is held by the ADS Depository (in
respect of the bank’s American Depository Shares (ADS) issue).roughly 31.3 % of
the equity is held by Foreign Institutional Investors (Fils) and the bank has about
190,000 shareholders. The shares are listed on The Stock Exchange, Mumbai and
the National Stock Exchange. The bank’s American Depository Shares are listed
on the New York Stock Exchange (NYSE) under the symbol “HDB”.

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Business Segments

HDFC Bank offers a wide range of commercial and transactional banking services
and treasury products to wholesale and retail customers. The bank has three key
business segments:

Wholesale Banking Services

The Bank’s target market ranges from large, blue-chip manufacturing companies
in the Indian corporate 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
of structured solutions, which combine cash management services with vendor and
distributor finance for facilitating superior supply chain management for its
corporate customers. Based on its superior product delivery / service levels and
strong customer orientation, the Bank has made significant inroads into the
banking consortia of a number of leading Indian corporates including
multinationals, companies from the domestic business houses and prime public
sector companies. It is recognised as a leading provider of cash management and
transactional banking solutions to corporate customers, mutual funds, stock
exchange members and banks.

Retail Banking Services

The objective of the Retail Bank is to provide its target market customers a full
range of financial products and banking services, giving the customer a one-stop
window for all his/her banking requirements. The products are backed by world-
class service and delivered to the customers through the growing branch network,

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as well as through alternative delivery channels like ATMs, Phone Banking, Net
Banking and Mobile Banking.

The HDFC Bank Preferred program for high net worth individuals, the HDFC
Bank Plus and the Investment Advisory Services programs have been designed
keeping in mind needs of customers who seek distinct financial solutions,
information and advice on various investment avenues. The Bank also has a wide
array of retail loan products including Auto Loans, Loans against marketable
securities, Personal Loans and Loans for Two-wheelers. It is also a leading
provider of Depository Participant (DP) services for retail customers, providing
customers the facility to hold their investments in electronic form.

HDFC Bank was the first bank in India to launch an International Debit Card in
association with VISA (VISA Electron) and issues the Mastercard Maestro debit
card as well. The Bank launched its credit card business in late 200L By
September 30, 2005, the bank had a total card base (debit and credit cards) of 5.2
million cards. The Bank is also one of the leading players in the “merchant
acquiring” business with over 50,000 Point-of-sale (POS) terminals for debit /
credit cards acceptance at merchant establishments.

Treasury
Within this business, the bank has three main product areas - Foreign Exchange
and Derivatives, Local Currency Money Market & Debt Securities, and Equities.
With the liberalisation of the financial markets in India, corporates need more
sophisticated risk management information, advice and product structures. These
and fine pricing on various treasury products 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. l’he Treasury
business is responsible for managing the returns and market risk on this
investment portfolio.

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Mr. Aditya Puri
(Managing Director)
HDFC Bank

Organization Structure
Mr. Aditya Puri
(Managing Director)

Mr. Navin Puri
( Retail)

North 1 & East North 2 South West 1 West 2
Mr. Seshan Mr. Dheeraj (Mr. Surinder (Mr. Anil Nath) (Mr. Ravi
Ramkrishna Reddy Chawla) Naragan)

Regional Head
(Mr. Gulzar Singh)

Zonal Head
(Mr. Arun Meduratta)

Cluster Heads

Akhilesh Roy Mr. Raju Bagga Mr. Rishiraj Mr. Anil Mr. Anurag
Khugsal Gupta

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Foreign Trade Department Result

On the foreign trade side, though overall exports showed an accelerated growth
during the last year, a number of sectors such as textiles, handicrafts, and leather
products saw growth moderating. The rupee appreciated sharply over the last year
(by as much as 11%), which was largely responsible for the deceleration in
exports. The prospect of a slowdown in the global economy has increased the risk
of a prolonged slowdown in exports.

Imports however remained robust in 2007-08, growing almost 30% in the first
three quarters of the year (as against 22° for the corresponding period last year) on
the back of higher global prices of 0111 and food. This, widened the trade deficit
to USD 67 billion in April-January FY08 from USD 45 billion in the
corresponding period of previous year. Despite the increase in the trade deficit,
overall, balance of payments was comfortable due to large capital inflows
(comprising mainly foreign direct investment, portfolio inflows and external
borrowings). Foreign exchange reserves grew by $107 billion during the year.

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BUSINESS UPDATE:

As of March 31, 2008, the Bank’s distribution network was at 761 branches and
1,977 ATMs in 327 cities as against 684 branches and 1,605 ATMs in 320 cities
as of March 31, 2007. Against the regulatory approvals for new branches in hand,
the Bank expects to further expand the branch network by around 150 branches by
June 30, 2008.

During the year, the Bank stepped up retail customer acquisition with deposit
accounts increasing from 6.2 million to 8.7 million and total cards issued (debit
and credit cards) increasing from 7 million to 9.2 million. Whilst credit growth in
the banking system slowed down to about 22% for the year ended 2007-08, the
Bank’s net advances grew by 35.1% with retail advances growing by 38.6% and
wholesale advances growing by 30%, implying a higher market share in both
segments. The transactional banking business also registered healthy growth with
cash management volumes increased by around 80% and trade services volumes
by around 40% over the previous year. Portfolio quality as of March 31, 2008
remained healthy with gross nonperforming assets at 1.3% and net non-performing
assets at 0.4% of total customer assets. The Bank’s provisioning policies for
specific loan loss provisions remained higher than regulatory requirements.

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Merger with Centurion Bank of Pun jab Limited

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 andlor warrants convertible into equity shares at the rate of Rs. 1, 530.13
each to HDFC Limited andlor 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.

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SWOT Analysis

Strength:

• Strong Brand Image

• Dedicated Sales Team

• Value added service

• HDFC Bank specializes in the provision of banking and other financial
services to corporate and institutional clients.

• The company’s services include commercial, transactional and electronic
banking products.

• It also provides treasury services, retail banking and capital markets
infrastructure.

• HDFC Bank is headquartered in Mumbai, India and employs about 37,836
people.

• In the 25 years till 2007, the country’s real GDP grew on an average at
6.2% per annum.

• In the last four years, however, GDP growth has been faster at 8.8% per
annum.

• HDFC Bank has 1148 branches, 1977 ATMs, in 325 cities in India

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• HDFC Bank acquired Centurion Bank of Punjab taking its total branches to
more than 1,000.

• The Bank has relationships with 110 micro finance institutions and has
extended credit facilities

Weakness:

• Rigid Eligibility Criteria

• Weak Customer Relations Management

• Centralized Structure

• High Average Quarterly Balance

• Limited Number of ATM's and Branches. Poor Network.

• Operations in trade finance are weak.

• After merger with CBOP it is time taking process to comp up on same
standard level.

Opportunities:

• Large Untapped Market.

• Distinguishable Product.

• HDFC is going to open more branches in various cities for which it has
already got the licenses.

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• It has overtaken ICICI bank and rising as reliable brand name bank in
market.

• It is becoming more customer focused bank as providing various services to
achieve their satisfaction.

• This is very conservative bank in giving loans as it pre checks all required
details of customer so reduces the risk of defaulters.

• It is providing good employment opportunities as Total number of
employees increased from 21,477 as of March 31, 2007 to 37,836 as of
March 31, 2008.

• The Bank also has specialized Agri Desks at certain branches across the
country which works as a single point contact for farmers.

Threats:
• Presence of Very strong Competitors.

• Aggressive marketing by Competitors.

• Various investment scheme with high returns.

• Lower capital inflows could also impact domestic liquidity.

• Banks operated in an environment where the central bank did not allow any
surplus liquidity in the system, resulting in interest rates remaining firm.

• Inflation concerns are likely to influence monetary policy stance going
forward.

• 30% growth rate is a bench mark for HDFC bank which they have to
achieve at any cost to maintain its brand image.

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• They have to achieve satisfaction of their shareholders also for future
concern.

Awards & Achievements

As in the past years, awards and recognition have been conferred on your Bank by
leading domestic and international organizations during the fiscal 2007-08.Some
of them are:

• For the fifth consecutive year, Bank has bagged the Business Today’s Best
Bank Award.

• Outlook Money and NDTV Profit’s Best Bank in the private sector
category.

• Bombay Stock Exchange and Nasscom Foundation’s Business for Social
Responsibility Award.

• ‘Dun & Bradstreet — American Express Corporate Best Bank Award
2007.’ There were 26 categories in all, including FMCG, Telecom and
Software & IT.

• The Financial Express-Ernst & Young Best Bank award in the Private
Sector category - this bank shared the top slot with another bank

• The Asia Pacific HRM Congress in Mumbai — Bank bagged as many as
ten awards including “Organization with innovative HR Practices”.

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• Business Today Survey conducted by the Monitor Group Innovation Study
— This Bank is one of India’s most innovative 28 companies across ten
major business sectors.

• The ‘Asian Banker Excellence in Retail Financial Service Awards’ - The
Best Retail Bank in India.

Over a decade of its operations, HDFC Bank has been recognized, rated and

awarded by a number of organizations, which includes.

• Best Retail Bank in India by the Asian Banker Excellence. (2007)

• Best Bank in India by Business Today. (2006)

• One of Asia Pacific’s Best Companies by Forbes Magazine. (2006)

• Best Local Cash Management Bank in Large and Medium Segments by the
Asiamoney Awards. (2006)

• Best Domestic Commercial Bank by Asiamoney Awards. (2005)

• Best Cash Management of India by the Asiamoney Awards. (2005)

• Retail Banking Risk Management Award in India by the Asian Banker
Excellence. (2005)

• “Company of the Year” Award for corporate excellence” by the Economic
times Awards. (2005)

• Best Local Cash Management Bank by in India US$ li-lom by the Business
Today KPMG Survey. (2005)

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• “Best Bank in India” for the third consecutive year” by the Business Today.
(2005)

• Best Overall Domestic Trade Finance Services in India by the Asiamoney
Awards. (2004)

• One of India’s Most Respected Companies by Business World. (2004)

• Best Under a billion 100 Best Smaller Size Enterprises in

• Asia/Pacific and Europe by Forbes Global. (2004)

• One of India’s Most Respected Companies by Business World. (2003)

• Best IT User in Banking by NASSCOM & economictime.com. (2003)

• “Best Commercial Bank in India” by Asiamoney magazine. (2002)

• “Best Bank in India” by Euromoney. (2002,2001)

• The 21st Century Achievement Award for Finance, Insurance & Real
Estate category by Computerworld, Inc., USA. (2002)

• The Economic Times Awards for Corporate Exceflence as the Emerging
Company of the Year. (2000-01)

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HDFC BANK CODE OF CONDUCT PREAMBLE:

Integrity, transparency and trust form part of the core beliefs of all activities at
HDFC (hereinafter referred to as ‘The Corporation’) which has been the
continuing basis of its growth and all round development. This code of conduct or
the code defines what the expects from its business and personnel regardless of the
location or their background. This code is applicable and binding on all Members
of the Senior Management team comprising of executive directors, personnel
designated as deputy general manager and above, functional Heads and Branch
Manager (hereinafter collectively referred to as the ‘Senior Management’) and
non-executive directors of the corporation. As the aforesaid Persons individually
and collectively help shape the growth of the Corporation they are individually
and collectively responsible to ensure that the corporation Operates with the
highest degree of personal and professional integrity, honesty and ethical conduct.
Hence this code has been formulated so as to promote the Highest degree of
personal and professional integrity and values into practice. As It is not possible to
address every possible situation that may arise, the provisions of this code are
intended to provide guidance in making ethical decisions and Should therefore be
construed and applied to further he said objective. This code shall be in addition to
rules, regulations, standards, policies and procedures that may be laid by the
corporation, from time to time.

This code has been approved by the Board of Directors of the Corporation at their
meeting held on Tuesday, December 13, 2005 and came into effect from January
1, 2006.

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SCOPE

By doing this project I can have an overview of the banking process and what are
the financial aspect related to the banking sector. I can also have overview to the
various aspect of saving account with respect to other private bank.

RATIONALE

Understand the banking process of standard chartered bank including the control
mechanisms of saving account. The focus of the project is overview of the various
aspect of saving account and identifies the problem.

LITERATURE SUPPORT

Background:

The Indian Banking system has seen sweeping changes over the years.

In the short span of time that they have been in existence, the leading new private
sector banks have truly revolutionized banking in India. There focus on
technology and customer convenience has brought about a paradigm shift in the
banking business. While Standard Chartered Bank today has built stable business
that it believes will deliver sustainable value to its stake holders, there are also
many existing opportunities for further growth. The Bank’s operation can be
subdivided into the following categories:

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EXECUTWE SUMMARY

Market research is the function that links the consumer, customer, and public to
the marketer through information-information used to identify and define
marketing opportunities and problems; generate refine, and evaluate marketing
actions; monitor marketing performance; and improve understanding of marketing
as a process.

Speaking in laymen’s language marketing research is the systematic and objective
identification, collection, analysis, dissemination and use of information for the
purpose of assisting management in decision making related to the identification
and solution of problems(and opportunities)in marketing.

The objective of the project was to “comparative analysis of accounts of different
bank” in Varanasi. HDFC bank got the research carried out to find what the
current trends are in the market and what the competitors’ product offerings are.
Also, market share of different banks was to be found and the recommendations to
increase the market share for HDFC bank were to be given.

The purpose of the study is to find out the market potential of accounts as
compared to other bank accounts. HDFC Bank is interested in finding out the sales
potential of its accounts as compare to other banks. Specifically, the research
objectives are to:

• Gauge the consumer sentiment on the various services provided by the
various banks in the city.

• Identify areas of improvement on the various services provided by the bank

• Determine the type of services needed by the consumers.

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• Identify the important and attractive attributes in services to retain the
existing consumers.

• Determine the type of banking parameters most popular with the Consumer.

• Identify the important characteristics that make the bank attractive to open
an account.

• Gather and analyze the future aspirations of the customers with respect to
the savings account.

For this purpose a primary research was conducted in the Varanasi city. The target
consumers were of various age —group, sex, monthly income and occupation. The
total field work was done for l5days in which a total sample size of 300 consumers
was covered.. The questions cover a wide range of issues including:

• Identifying the types of accounts maintained by a consumer and whether he
or she is happy with the services.

• Obtain the likelihood of the respondent applying for a specific type of
services while opening an account.

• Determine the characteristics of the various banking features that are
important while opening an account.

• Finally it will seek demographic information of the respondents.

• Analyze the demographic information of the respondents with the account
parameters.

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Accounts & Deposits

Banking should be effortless. With HDFC Bank, the efforts are rewarding. No
matter what a customer's need and occupational status, we have a range of
solutions that are second to none.

Whether you're employed in a company and need a simple Savings account or run
your own business and require a robust banking partner, HDFC Bank not only has
the perfect solution for you, but also can recommend products that can augment
your planning for the future.

Savings Accounts

These accounts are primarily meant to inculcate a sense of saving for the future,
accumulating funds over a period of time. Whatever your occupation, we are
confident that you will find the perfect banking solution. Open an account in your
name or register for one jointly with a family member today.
Regular
Salary
Savings Plus
Classic
Savings Max

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Payroll
No Frills
Regular
Senior Citizens
Premium
Retail Trust
Defence
Kids Advantage
Kisan No Frills Savings
Pension Savings
Family Savings
Kisan Club Savings

Current Accounts

Now, with an HDFC Bank Current Account, experience the freedom of multi-city
banking! You can have the power of multi-location access to your account from
any of our 1229 branches in 444 cities. Not only that, you can do most of your
banking transactions from the comfort of your office or home without stepping
out.

We make it our business to help you with your business by offering you a Current
Account with all the benefits you need to stay ahead of your competition.

At HDFC Bank, we understand that running a business requires time and money,
also that your business needs are constantly evolving. That's where we come in.
We provide you with a choice of Current Account options to exclusively suit your
business - whatever the size or scope.

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Open an HDFC Bank Current Account & control your business operations
centrally.

Plus
Trade
Premium
Regular
RFC Domestic
Flexi Current
Reimbursement
Apex
Max
Choose the product most suitable for you:

Fixed Deposits

Long-term investments form the chunk of everybody's future plans. An alternative
to simply applying for loans, fixed deposits allow you to borrow from your own
funds for a limited period, thus fulfilling your needs as well as keeping your
savings secure.

Regular Fixed Deposit

Super Saver

Sweep-In

5 Year Tax Saving Fixed Deposit

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Operations

Treasury Corporate Retail Banking
Banking

Savings Current Salary

PURPOSE & DESCRIPTION:

SAVINGS ACCOUNT:

The Savings account is a transaction account wherein a deposit is placed with the
bank for an unspecified period of time while

CURRENT ACCOUNT:

The Current account is a transaction account especially meant for business Process
where cash inflow and outflow carry on for trading purposes.

The depositor can withdraw the money whenever required Through any of the
following means.

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Cheques, transfer through an ATM (by ATM or ATM-cum-Debit cards), Standing
instructions, remittances, VISA Money transfer, by making Purchases made on a
linked Debit Card at merchant establishments, Pay Orders etc.

Interest Paid:

 Interest on the account is determined in accordance with directives of the
Reserve Bank of India

 The current rate is 3.5%

 Interest is calculated on the Minimum Credit Balance between the close of
the business on the 10th and the last day of each calendar month

 Interest is credited to the account every calendar quarter.

Generic Value Proposition:

 India’s Leading banking group.

 Best bank branch network

 75f3 branches in 320 locations

 24 hour Fully functional phone banking facilities

 Any branch banking, anywhere in India

 Doorstep banking - bank from your home/office

 Internet banking

 Mobile Banking

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 RTGS(Real Time Gross Settlement facility)

 National electronic Fund Transfer Facility

 Pay Order Facility.

 Free monthly account statement.

 Visa Money Transfer.

 Online real-time Net banking.

 ATM Facilities.

 Debit Card.

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ACCOUNTS:

SAVINGS ACCOUNT

A detailed and complete analysis of the product available under Savings account is
presented below:

Savings Account

Savings Plus Savings regular

Senior citizens account
Savings Max
SAVINGS MAX

Kids advantage account

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SAVINGS REGULAR

An easy to operate savings account that allows issuing cheques, Demand Drafts
and withdrawing cash. It also gives the facilities of Net Banking, Mobile Banking
and Phone Banking. It also allows to withdraw cash from 1695 ATM centre’s.

Features and Benefits:

 Wide network of branches and over thousand ATMs to meet all banking
needs no matter what is the location

 Bank conveniently with facilities like Net Banking and Mobile Banking-
check account balance, pay utility bills or stop cheque payment, through
SMS.

 Never overspend-shopping with International Debit Card that reflects the
actual balance in the account.

 Personalized cheques with the name printed on each cheque leaf for
enhanced security.

 Advantage of Bill Pay, an instant solution for frequent utility bill payments.
Instruct for payment over the phone or through the internet. Facilities of
Safe Deposit Locker, Sweep-in and Super Saver on the account.

 3 Free transactions on SBI/Andhra Bank ATMs per month.

 Free Payable at Par chequebook, without any usage charges up to a limit of
Rs.50, 000/-per month.

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 Free Insta Alerts for all account holders for lifetime of the account. Free
Passbook facility available at home branch for account holders (individuals)

 Free Email statement facility.

Eligibility & Account Operation:

The following are eligible to open a Regular Savings Account.

 Resident Individuals (sole or joint account)

 Minelow 18 yrs. (account only with guardian)

 Hindu Undivided Families.

 Trusts

 Associations

 Clubs or Societies.

 Foreign National with undertaking and source of credit, Residence
Permit.

Account Operation

 A minimum deposit of Rs.5,000/- is required to open an account and
thereafter an Average Quarterly Amount of the same amount has to be
maintained.

 It is mandatory to maintain a minimum Average Quarterly Balance
(AQB) of Rs.5,000/-If the balance falls below Ps. 5,000/- a service
charge of Ps. 750/- will be levied per quarter.

 In case of Fixed Deposit of Ps. 50,000/- there is no need to maintain a
minimum balance of Ps. 5,000 in savings account.

37

Savings Plus Account

With the Average Quarter Balance of Rs. 10,000/- Saving Plus Account is the
access to some of the finest banking facilities.

 Wide network of branches and over thousand ATMs to meet all the banking
needs
 2 Free transactions on SBI/Andhra Bank ATMs per month.
 3 Free transactions on any other Bank’s ATM per month.
 Free International Debit Card for all account holders for life time of the
account.
 Free Payable at Par (PAP) chequebook without any usage charges up to a
limit of 50,000 per month.
 Free Demand Drafts on HDFC Bank locations, up to a limit of 25,000/- per
day.
 Free Billpay & InstaAlerts for all account holders for lifetime of the
account.
 Free Electronic Fund Transfer facility, NetBanking, Phone Banking &
Mobile Banking.
 Special relationship discount on purchase of Gold Bars 25%-off on the
Locker rental for the 1st year (only). Intercity Banking/Multi-city Banking.
 Free Passbook facility available at home branch for account holder
(individuals).

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Eligibility and account Operation:

The following are eligible to open a Savings Plus Account

 Resident individuals (sole or joint account)

 Minor below i8 yrs. (account only with guardian).


 Foreign National with undertaking and source of credit, Residence Permit.

Account Operation:

 A minimum deposit of Es. 10,000/- is required to open an account and
thereafter an Average Quarterly Balance of the same amount has to be
maintained.

 If AQB in the savings a/c is >=10,000/- and/or the balance in the FD is
>50,000/-, No AQB non maintenance charges will be levied.

 If the AQB in the SB a/c falls below 10,000/- and balance in the FD is
also<=50,000/- following charges would be applicable:

 AQB in the SB a/c between 5,000/- and 10,000/-: Es. 750/-per quarter

 AQB in the SB a/c is less than 5,000/: Es. 750/-per quarter

 If, the Savings Plus Account AQB is <10,000/-but FD balance is
>=50,000/-. No minimum balance charges will apply.

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 Transaction charges applicable in case the specified AQB is not been
maintained in the previous qtr.

SAVINGS MAX ACCOUNT

By maintaining an average quarterly balance of Rs. 25,000/- a host of premium
services will be provided from HDFC Bank.


 Free unlimited transactions: Cash withdrawal and balance enquiry, at all
HDFC Bank ATMs & on any other Bank’s ATM using HDFC Bank Debit
Card.

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

 Free Woman’s Advantage/International Debit Card for all account holders
for lifetime of the account.

 Free Payable-at-Par (PAP) chequebook, without any usage charges up to a
limit of 1 lac per month.

 Free Demand Drafts on HDFC Bank locations, up to a limit of 50,000/- per
day at home branch.

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 Self/Third Party Cash Deposit/Withdrawal at non-home branches, up to Rs.
50,000/-per day free. Above Ps. 50,000 a charge of Rs. 2.90 per thousand
on the full amount would be applicable.

 Optional sweep out facility to transfer extra savings to a Fixed Deposit, at
the threshold of Rs.5o,000/- In the event of the balance in SavingsMax
account exceeding Rs. 50,000/-, the amount in excess of Rs.50,000/- will be
swept out in to a Fixed Deposit with a minimum value of Rs. 25,000/- for a
1 year 1 day period.

 Free BiliPay & InstaAlerts for all account holders for lifetime of the
account.

 Free Monthly Statement of Account.

 50% off on the Locker rental for the 1St year only.

 Folio maintenance charges on Demat account free for first year.

 Free National Electronic Fund Transfer Facility, NetBanking,
PhoneBanking & Mobile Banking.

 Free Passbook facility available at home branch for account holders
(individual)


Eligibility and Account Operation:

The Following are eligible to open a Saving Max Account

 Residential Individuals (sole or joint account).

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 Minor below 18 yrs. (account only with guardian).


 Foreign National with undertaking and source of credit, Residence Permit.

Account Operation:

 A minimum deposit of Rs. 25,000/-is required to open an account and
thereafter an Average Quarterly Balance of the same amount has to be
maintained.

 If the AQB in the SavingsMax a/c >=25,000/-and/or the balance in the FD
is > 100,000/-, no AQB non maintenance charges will be levied.

 If the AQB in the SavingsMax a/c falls below 25,000/- and balance in the
FD is also below 100,000 the following charges would be applicable.

 AQB in the SavingsMax a/c between Rs.io,ooo/-and Rs. 1000/-per quarter.

 AQB in the SavingsMax a/c is less than Rs. 10,000/- Rs. 1,500/-per quarter

 If the SavingsMax a/c AQB is <25,000/-but FD balance is>=100,000/-no
minimum balance charges will apply.

 Transaction charges applicable in case the specified AQB is not been
maintained in the previous qtr.

42

SENIOR CITIZEN
ACCOUNT

HDFC Bank appreciates your needs and endeavours, which is why, we present an
account especially dedicated to you, which like a dutiful child will help you fulfill
your needs in the best manner possible.

Features & Benefits

Given below are some of the exclusive privileges you can look forward with the
Senior Citizens Accounts

 Shop with pride with your EasyShop International Debit Card offered free
for life to the first applicant. Shop (Point Of Sale limit) upto Rs.25,000/-
per day.

 Enjoy an enhanced cash withdrawal limit of Rs.25,000/- per day on the
Debit Card for withdrawals at any HDFC Bank ATM.

 Note: If the first applicant is a woman and new to the bank, our special
Woman's Advantage Debit Card with ATM cash withdrawal limit
Rs.20,000/- per day and shopping (Point Of Sale) limit of Rs.30,000/- per
day will be issued free by default.

 You need not search for an HDFC Bank ATM, you can avail of 3 free cash
withdrawal transactions per month at any other bank ATM.

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 Payable-at-Par (PAP) chequebooks are issued free. With this facility,
outstation cheques issued by you (for clearing) will be treated as local
cheques, at any HDFC Bank location.

 What's more, enjoy free PAP usage upto Rs.50,000/- per month. A nominal
charge of Re.1/- per 1000 will apply above Rs.50,000/- on the full amount.

 Keep a close eye on your account with the monthly account statements
offered free OR

 Avail of free Passbook facility at your account branch.

 Use the third party cash transaction facility at non-account branches, to
have your near and dear ones deposit / withdraw cash upto Rs.50,000/- per
day on your behalf for free. Above Rs 50,000 a charge of Rs 2.90/- per
1000 on the full amount would be applicable.

 Use our PhoneBanking, MobileBanking and NetBanking facilities offered
free to reach us with ease.

 Avail free SMS alerts to know the transactions in your account.

 Free Email Statement facility and National Electronic Funds Transfer
facility available.

Special offers and benefits:

 Get preferential rates on FDs

 Special offers on new Demat Accounts

o Annual Maintenance Charge (AMC) waived off for the first year

44

o Reduced AMC of Rs.250/- from second year onwards

o Dematerialisation of physical shares free for lifetime

 Special offers on new Online Trading Accounts

o Account opening charges Rs.499/- only

o 5 trades free .Valid for the next 3 months from the date of account
opening

 Gold Credit Card free*

 Travellers’ Cheques issued free

Insurance Benefits* :
Get Accidental Hospitalisation cover of Rs.50,000/- per annum. This is a
reimbursement cover.

You can also claim daily cash allowance* once a year (at Rs.500/- per day for a
maximum of 15 days per year) for each day of hospitalisation due to an accident.

All you need to do is use your HDFC Bank Debit Card at a Merchant
Establishment for purchase transactions !

Your claim will be processed only if you have used your HDFC Bank Debit Card
for purchase at a Merchant Establishment at least once in the previous 6 months
from the month of your accident.

45

Eligibility & Account Operation:

All resident individuals (sole or joint) in the age group of 60 years and above are
eligible to open the Senior Citizens Account.

In case of joint accounts, the first applicant has to be a senior citizen (>= 60 years
of age)

Account Operation

A minimum deposit of Rs. 2,500/- is required to open a Senior Citizens Account
and thereafter an Average Quarterly Balance (AQB) of the same amount has to be
maintained.

Non-maintenance of required AQB will invite charges of Rs.250/- per quarter.

Transaction charges will be applicable in case the specified AQB has not been
maintained in the previous quarter.

46

Kids Advantage Account

Children these days are way ahead of their times. Make sure your investments
don’t fall short.
Now through HDFC Bank’s Kid’s Advantage Account you can ensure your
child’s secured future and fulfill all his dreams in time. The Kid’s Advantage
Account presents you a great way to accumulate savings for your child and
provide him the head-start required to succeed in life. It’s an account which grows
with your child to meet his future monetary requirements.

Features & Benefits
For their Growing Needs
 Free Education Insurance cover of Rs. 100,000!- in the event of death of the
parent I guardian through vehicular accident by road, rail or air to safeguard
the future of your child.
 ATM/International Debit Card will be issued for children between 7-18
years of age in the child’s name with your permission. The amount your
child is able to withdraw is Rs. 1,500/- at ATMs or spend Rs. 1,000/- at
merchant locations.
 Your child need not even search for an HDFC Bank ATM. He/she can
make 3 cash withdrawal transactions from SBI/Andhra Bank ATMs per
month, absolutely free.
 Free Personalised cheque book for your child.
 Monitor the transactions of your child’s account with the free quarterly
physical statement of account or free monthly Email Statement of account.
 Free NetBanking for you to monitor your child’s account.

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 Free SMSIEmaiI alerts informing you about the account transactions.

For their Secured Future
 Opt for standing instruction to transfer any amount from your account to
your Kid’s Advantage Account every month (Minimum value = Rs. 500/-
& Minimum tenure = 1 year).
 Once the balance in the Kid’s Advantage Account reaches/exceeds Rs.
10,000!-, the amount in excess of Rs. 5.000/- will automatically be
transferred into a Fixed Deposit for 1 year I day, in your child’s name, by
signing in for our sweep-out facility.
 You can also opt for systematic investments in mutual funds from the Kid’s
Advantage Account in your child’s name.

Eligibility
 Kid’s Advantage Account can be opened for your child as long as your
child is a minor (up to 18 years of age) and you have a Savings Account
with us.
 If you do not have a HDFC Savings Account, you will need to open an
account. Click here to open a HDFC Savings Account.
 How to Open a Kid’s Advantage Account
 Invest a minimum sum of Rs. 10,000/- in a Fixed Deposit in your child’s
name for a minimum duration of 6 months and I day, with a benefit of a
Zero Balance Kid’s Advantage Account.
OR
Maintain a minimum Average Quarterly Balance requirement of:
- Rs. 5,000!- for Metro/Urban locations
- Rs. 2,500!- for Semi-urban/Rural locations
Penalty for non-maintenance of Average Quarterly Balance is Rs. 300/per quarter.

48

CURRENT ACCOUNT

A detailed and complete analysis of the product available under the Current
Account is given below :

Current
Account

regular Trade max flexi
Current Current Current Current

apex
Current

premium
Current

plus
Current

49

REGULAR CURRENT

HDFC Bank Regular Current Account gives the facility of payable at par cheques
or deposit cheque at any HDFC Bank Branch. It also facilitates FREE NEFT
transactions & FREE RTGS collections. It requires to maintain an average quarter
balance of only Rs. 10,000.

Features and Benefits :

 Convenient Inter-city banking

 Free payment and collections through NEFT.

 Free RTGS collection. RTGS payment @ Rs.100/- per transaction.

 Inter-city Account accounts fund transfer between HDFC Bank accounts
at a nominal charge of Rs. 15/- per transactions.

 Free Demand Drafts (DD) above Rs. 1,00,000/-. Demand Drafts up to Rs.
50,000/- at flat cost of Rs. 40/-. DD above Rs. 50,000/- & up to Rs.
1,00,000/- at nominal cost of Rs.25/-.

 Free Pay Order (PO) above Rs. 1,00,000/-. Pay Order up to Rs.50,000/- at
flat cost of Rs.40/- POs above Rs. 50,000/- & up to Rs. 1,00,000/- at
nominal cost of Rs. 25/-

 Payable at par cheque book at nominal price.

50

 Insta Alert service without visiting the branch or ATM.

 24 hour Phone Banking, Mobile Banking and Net Banking that helps to
balance and transaction details.

Eligibility & Documentation
 Resident Individuals
 Hindu Undivided Families
 Sole Proprietorship Firms
 Partnership Firms
 Limited Companies
 Trust Accounts
 Association/Clubs/Societies
 Foreign Institutional Investors.
 Foreign national residing in India.

The AQB is Rs. 10,000/- per quarter. Non maintenance of AQB is Rs. 750/-.

51

PREMIUM CURRENT

Premium Current Account requires AQB of Rs.25,000 and offers payable at par
cheque book facility & FREE inter-city clearing transactions up to Rs. 25 Lacs per
annum.

Features and Benefit:

 Free anywhere collection & payment within HDFC Bank Branch network
(except Dahej). Up to Rs.25 lacs per month, Incremental amount to be
charged @ Rs. 1.50 per Rs. 1,000/-. mm Rs.25.

 FREE NEFF transactions.

 Free RTGS collection. RTGS payment @ Rs. 10 0/- per transaction

 Inter-city Account to accounts funds transfer between HDFC Bank
accounts at a nominal charge of Rs. 15/- per transactions.

 Free Demand Drafts (DD) above Rs.ioo,000/-. Demand Drafts up to
Rs.5o,000/- Rs.40.DD5 above Rs. 50,000/- & up to Rs. 100,000/- Rs.25/-
and can be issued from any HDFC Bank Branch

 Free Pay Order (P0) above Rs. 100,000/-. Pay Order up to Rs.50,000/-
Rs.4o/-. Pos above Rs.5o,000/- & up to Rs. 100,000/- Rs.25/- and can be
issued from any HDFC Bank Branch.

 100 “At Par” cheque leaves free per month.

52

 InstaAlert Service

 24 hour Phone Banking, Mobile Banking, Net Banking facility.

Eligibility and Documentation:

The following are eligible to operate a premium Account




 Partnership Firms.


 Trust Accounts.

 Associations/Clubs/Societies.


 Foreign national residing in India

AQB maintenance is Rs. 25,000/-to operate this account. Non- maintenance
of the AQB is Rs. 900/-.

53

TRADE CURRENT

From special cheques that get treated at par with local ones in any city where
HDFC having Branch to free account to account funds transfer between HDFC
Bank accounts, to free inter-city clearing of up to Rs. 50 lakhs per month. Trade
Current Account requires AQB of Rs. 40,000.


 Free Account to account funds transfer between HDFC Bank accounts.

 Free RTGS/NEFT transactions.

 Free up to 30 Demand Draft (DD) per month and can be issued from any
HDFC Bank Branch.

 Free up to 30 Pay Orders (P0) per month can be issued from any HDFC
Bank branch.

 Free anywhere collection and payment within HDFC Bank branch
network (except Dahej), up to Rs. 50 lacs per month.

 Convenience to withdraw & deposit cash at all HDFC branches*

 200 “At Par” cheque leaves per free month.

 InstaAlert service without visiting the branches or ATM.

 24- hour Phone Banking, Net Banking and Mobile Banking that helps to
check balance& transaction details, status of cheque payment.

54


The following arê eligible to operate a Trade Account

 Residence individuals.


 Sole Proprietorship firms.

 Partnership Firms.

 Limited Companies.

 Trusts Account.

 Associations/ Clubs / Societies.

 Foreign institutional investors.

 Foreign nationals residing in India.

AQB maintenance is Rs. 40,000 to operate this account. Non
maintenance of AQB will be charged Rs.1200/-

55

PLUS CURRENT

HDFC Bank plus Current Account gives the power of inter-city banking with a
single account and access to more than 316 cities. Plus Current Account requires
to maintain an average quarterly balance of Rs.100,000.

 Free Account to account funds transfer between HDFC Bank accounts

 Free payment and collection through RTGS.

 Free payment and collection using NEFT (through Net Banking)

 Free up to 50 Demand Draft per month and can be issued from any

 HDFC Bank Branch.

 Free Up to 50 Pay Orders (PO) per month and can be issued from any
HDFC Bank Branch

 Free anywhere collection & payment transaction (clearing) within HDFC
Bank branch network (except Dahej) up to Rs 100 lacs per month.

 Convenience to withdraw & deposit cash at all our branches*

 300 “At Per” cheque leaves free per month.

 InstaAlert service provides updates when the select transaction happens —
without visiting the branch or ATM.

56

 24 hour Phone Banking, Net Banking and Mobile Banking that helps to
check balance & transaction details, status of cheque or stop cheque
payment.




 Sole Proprietorship Firms.

 Partnership firms.

 Limited companies.

 Trust Accounts.

 Associations/Clubs/Societies.


 Foreign nationals residing in India.

AQB charge is Rs. 1,00,000/- per quarter. (Non maintenance of which
entails a charge as per the following:)

When the AQB is less than 1 lath and up to Rs. 50,000/-,there is a service
charge of Rs. 1,500/- per quarter.

When the AQB less than Rs. 50,000/- there is a charge of Rs. 6,ooo per
quarter.

57

Max Current Account

Presenting maximum benefits andminimum hassles for you with Max Current
Account! With a Rs. 5 lakhs average quarterly balance requirement, we present to
you a world of privileges that helps your business expand and grow. Features like
maximum free transaction limits including other beneficial features on this current
account truly enhances your business potential to the MAXImum.

Features & Benefits

 Maximum transactional benefits with faster mobilisation of funds

 Average quarterly balance requirement of Rs. 5,00,000/-

 Access to more than 750 branches

 Huge cost savings in inter-city transactions for payable-at-par cheque
issuance, funds transfers, NEFT, RTGS or Demand Draft / Pay Order

 Faster collection of outstation cheques

 Free Account to Account funds transfer between HDFC Bank accounts

 Free payment and collection through RTGS

 Free payment and collection using NEFT (through NetBanking)

 Free Demand Drafts which can be issued from any HDFC Bank branch

 Free Pay Orders which can be issued from any HDFC Bank branch

58

 Free anywhere collection & payment (clearing) upto Rs. 5 Crore per month
within HDFC Bank branch network (except Dahej)

 Convenience to withdraw and deposit cash at all our branches*

 Free cash deposit upto Rs. 50 Lakh per month across all home branches
(subject to a maximum of 50 transactions per month and a per day limit of
Rs.1,00,000/- on cash deposit at a non home branch)

 Choice of local / Payable at Par cheques. 500 leaves free per month

 Register for InstaAlert service and receive updates on your account as and
when the select transaction happens - all this without visiting the branch or
ATM!

 HDFC Bank offers you Doorstep Banking*, a channel, which is
convenient, secure and hassle-free. Now, you can enjoy the benefits of
banking right at your doorstep. The Bank will arrange to render the services
like Cash & Cheque Pickup and Cash Delivery, through a reputed agency.

 Enjoy facilities like 24-hour PhoneBanking, NetBanking and
MobileBanking that helps you check your balance and transaction details,
find out the status of your cheque or stop cheque payment.

59







 Trust Accounts


All you need to do, is maintain an average balance of Rs.5,00,000/- per
quarter. (Non-maintenance of which entails a charge of Rs.3000/- in case
the AQB is less than Rs. 5,00,000 but greater than or equal to Rs. 2,50,000
OR Rs.8,000/- in case the AQB is less than Rs. 2,50,000/-)

All fees & charges mentioned in the Tariff, Charges or Fees Brochures will
attract Service Tax @ 12% & Education Cess @ 3% of the service tax
amount. The same will appear as separate debits in the statements.

60

Apex Current Account

The top position is always the coveted position. With the Apex current account,
take your business to a new high. On maintaining an average quarterly balance of
Rs. 10 lakhs, this account makes sure you make the most of every business
opportunities coming your way. Unlimited, free, anywhere Banking experience at
the APEX is reserved for you.

Features & Benefits

 Maximum transactional benefits with faster mobilisation of funds

 Average quarterly balance requirement of Rs. 10,00,000/-

 Access to more than 1229 branches

 Huge cost savings in inter-city transactions for payable-at-par cheque
issuance, funds transfers, NEFT, RTGS or Demand Draft / Pay Order

 Faster collection of outstation cheques

 Free Intercity Cheque Collection & Payments within HDFC Bank Network
(excluding Dahej).

 Free Account to Account funds transfer between HDFC Bank accounts.

 Free payment and collection through RTGS

 Free payment and collection using NEFT (through NetBanking)

61

 Free Demand Drafts which can be issued from any HDFC Bank branch

 Free Pay Orders which can be issued from any HDFC Bank branch

 Convenience to withdraw and deposit cash at all our branches*

 Free Cash Deposit upto Rs. 100 lacs per month across all home branches
(subject to a maximum of 50 transactions per month and a per day limit of
Rs.1,00,000/- on cash deposit at a non home branch)

 Choice of local / Payable at Par Cheques. 500 leaves free per month

 Register for InstaAlert service and receive updates on your account as and
when the select transaction happens - all this without visiting the branch or
ATM!


 Enjoy facilities like 24-hour Phone Banking, Net Banking and Mobile
Banking that helps you check your balance and transaction details, find out
the status of your cheque or stop cheque payment.

62







 Trust Accounts


All you need to do, is maintain an average balance of Rs.10,00,000/- per
quarter. (Non-maintenance of which entails a charge of Rs.5,000/- in case
the AQB is less than Rs. 10,00,000 but greater than or equal to Rs. 5,00,000
OR Rs.10,000/- in case the AQB is less than Rs. 5,00,000/-)

63

Flexi Current Account

Tired of static transaction limits during peak seasons?

HDFC Bank Flexi Current Account is the answer to your changing banking needs
during peak seasons.

With HDFC Bank Flexi Current Account your Cash Deposit and Anywhere
Transaction limits are a multiple of the balance you maintain in your Current
Account.

So, during peak seasons, you get the benefit of higher transaction limits due to the
higher average balances maintained in your account.

What’s more, during lean seasons, you need not bother about maintaining huge
balances to enjoy high transaction limits, which you anyway may not need.

Flexi Current Account requires you to maintain a minimum Average Monthly
Balance (AMB) of just Rs. 75,000.

Features & Benefits

 Enjoy dynamic free limits on Intercity Payments, Collections & Funds
Transfer as well as Cash Deposit at home location branches based on the
AMB maintained*

64

For example, you maintain an AMB of Rs.2,00,000/- in a particular month.
Your dynamic free transaction limits for that month would be as per the
following table:

Transaction Dynamic Free Limits*

Cash Deposit at Home Rs. 24,00,000 in that

Branch Location particular month

Anywhere Payments, Free up to Rs.1,00,00,000/- in

Collections & Funds that particular month

Transfer (except Dahej)

 Pay your vendors on a real time basis using Real Time Gross Settlement
(RTGS) available across 23,000 Bank Branches*. What’s more, payments
and collections through RTGS are completely free!

 Make and receive remittances to & from your vendors & customers across
20,000 + Bank Branches of more than 50 Banks through Net Banking using
National Electronic Fund Transfer (NEFT), Absolutely Free!

 Free 40 Demand Drafts & Free 40 Pay Orders issued from any HDFC Bank
Branch*

 Convenience to withdraw and deposit cash at all our branches*.

 Competitive pricing on Demand Drafts drawn on Correspondent Banking
Locations as well as Outstation Cheque Collection at HDFC Bank
Locations

65

 InstaAlert service - receive updates on your account as and when the select
transaction happens – all this without visiting the Branch or ATM!

 Enjoy facilities like 24-hour Phone Banking, Net Banking and Mobile
Banking that helps you check your balance and transaction details, find out
the status of your cheque or stop cheque payment.








 Trust Accounts


All you need to do, is maintain an average balance of Rs.75,000/- per month.
(Non-maintenance of which entails a charge of Rs.1,000/- per month)

66

Our range of Cards help you meet your financial objectives. So whether you are
looking to add to your buying power, conducting cashless shopping, or budgeting
your expenditure, you will find a card that suits you.

Credit Cards
Besides arming you with unmatched spending power, our Credit Cards are
designed to meet your unique needs. Choose one that's tailored for you. The best
credit cards are available here, including even the online credit cards service
Netsafe.

Classic Cards

 Silver Credit Card

Premium Cards

 Gold Credit Card


 Titanium Credit Card

67

 Woman's Gold Card

 Platinum Plus Credit Card

 Visa Signature Credit Card

 World MasterCard Credit Card

Special Benefit Cards

 Value Plus Credit Card

 Health Plus Credit Card

Commercial Cards

 Corporate Credit Card

 Business Credit Card

Debit Cards
What if you could carry your bank account with you? HDFC Bank Debit Cards give you
complete and instant access to the money in your accounts without the risk or hassle of
carrying cash. Choose from:

Classic Cards

 EasyShop International Debit
Card

Premium Cards

 EasyShop Gold Debit Card

Specialised Cards

68

 EasyShop International Business Debit Card

 EasyShop Woman's Advantage Debit Card

 EasyShop NRO Debit Card

 Kisan Card

Prepaid Cards
Besides offering convenience, our Prepaid Cards have been tailored to answer your
travel and gifting needs.

Choose the one that best answers your needs:

 ForexPlus Cards
Prepaid Travel Card - to manage your overseas expenses.

 GiftPlus Cards
Prepaid Gift Card - Gift the freedom of choice!

 FoodPlus Cards
Prepaid FoodPlus Card - Freedom from cumbersome meal
vouchers.

 MoneyPlus Card
The Corporate Payment Card - Freedom from cash
disbursement / administrative hassles.

69

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73

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75

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77

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78

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79

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80

COMPARATIVE ANALYSIS OF HDFC BANK
CURRENT & SAVING ACCOUNT WITH
OTHER BANK

“We Understand Different People Have
Different Needs”

82

OBJECTIVE
The main objective of this project report is to make an analytical study of HDFC
Bank it includes:

• History of the Bank

• Product Analysis

• Services

• Bank’s Accounts

• Comparison of the current & saving accounts with other leading Bank’s of
India

The purpose of the study is to find out the market potential of current & Savings
Account as compared to other bank accounts. HDFC Bank is interested in finding
out the sales potential of its current & Savings Account as compare to other banks.
Specifically, the research objectives are to:

• Gauge the consumer sentiment on the various services provided by the
various banks in the city.

• Identify areas of improvement on the various services provided by the bank

• Determine the type of services needed by the consumers.

• Identify the important and attractive attributes in services to retain the
existing consumers.

83

• Determine the type of banking parameters most popular with the consumer.

• Identify the important characteristics that make the bank attractive to open a
current and savings account.

• Gather and analyze the future aspirations of the customers with respect to
the current & savings account.

PROCESS/METHODOLOGY OF STUDY

Bank basically means business and in business collection of raw data allows the
managers to sce the real scenario and then take a decision as per the data obtained.
There are several implications in this statement:

• The bank gets a clear picture of the current & Savings Account scenario.

• They can examine the available information in the form of data to make a
decision

• They can even get a clear picture of the scenario or potential of the current
& Savings Account of their banks in comparison to other banks.

• This will help the bank in making any decision.

• The information can only be gathered by data collection and then analyzing
the available data.
Therefore, it can be said that the data collection is an important part of the
project.
Data Information
Raw numbers

84

The projected objectives were considered and as per the
requirement a market survey was done.

PROCESS:

The procedure that followed can be enlisted as below:

• Reading about the product

• Deciding on the objective to proceed.

• Developing Survey instruments

• Conducting personal interviews of different age ,groups sex Monthly
income and occupation.

• Finally analyzing the data of various areas and trying to study with the
other banks.

PROCESS ADOPTED:

1. Gaining knowledge about the product:

Reading about the product was the first step undertaken. This gave not only
in depth knowledge about what is been offered by the bank but also proved useful
while developing the questionnaire.

2. Steps in the Development of the Survey Instruments

85

The main instruments required for survey was a well-developed
questionnaire. The questionnaire development took place in a series of steps as
described below:

86

Research objectives are being transformed into
Step 1 information objective

The Appropriate data collection methods have
Step 2 been determined

The information required by each objective is
Step 3 being determined

Specific Questions/Scale Measurement format is
Step 4 developed

Question/Scale Measurements is being evaluated
Step 5

Research objectives are being transformed into
Step 6 information objective

87

The number of information needed is being
Step 7 determined

The questionnaire and layout is being evaluated
Step 8

Revise the questionnaire layout if needed
Step 9

The questionnaire format is being finalized
Step
10

3. Customer Survey:

The people play an important part as a clear perception of people about the
product can be estimated and known. Studying the need levels of the people
regarding the banking product can be observed. It was very useful in knowing
about the requirements of the people.

88

4. Referred to brochures and websites of competitors:

To understand the competitors product brochures and websites of various banks
were referred and a competitive analogy of all the rates and necessary features of
the current & Savings account is been made. The table is been attached in the
Appendix.

RESEARCH DESIGN:

A two stage Research was conducted:

1. Secondary Research:

Data was collected from websites and catalogues to understand the product and
the charges of the different bank

2. Primary Research:

A Primary Research was conducted:

The questionnaire was prepared for the companies and following areas covered:

 Competing Banks

 Features offered by different banks

 Consumer profile

 Satisfaction level with the current bank

 Reason for the selection of specific Bank

 Desirable features of the product

89

SAMPLING DESIGN:

Elements: I had selected samples including men and women from different parts
of Varanasi.

Sample size: 300 people.

Primary Data:

The data collection was primarily done through communication. Communication
involves questioning respondents to secure the desired information, using a data
collection instrument called questionnaire. The questions were in writing and so
were the responses.

Limitations

There was difficulties/obstacle faced during the initial part of the project, which
were however overcome successfully. To list:
1. It was difficult to break the ice with the common people initially. It was a
daunting task to convince them to fill in the personal details of the
questionnaire where they have to mention the monthly income, occupation
and minimum amount in their current & Savings Account.
2. To convince the people for a proper interviewing process is also difficult.
3. The competitor analysis in the manual could only be compiled for a rough
idea to the nature of the product. The product features and charges keep o
changing on a frequent basis.

90

Compilation of data on competitor analysis was difficult due to non-
availability of correct information

APPENDIX

Questionnaire:

This is a kind of market research, (comparative analysis of banks) and I need
your cooperation in the form of some of your personal information to make
the research more efficient and it would be my pleasure to have your
valuable cooperation.

Personal details:

Name:……………………………………….

Age……………………………...

Gender: Male Female

Occupation: Govt. Service Private Service

Businessman Professional (Doctor, Teacher etc)

Firm’s name. If any……………………………………………

Location………………………………………

Monthly Income:
Below 300,000 30,000-45,000

45,000-60,000 0 above 60,000

91

Contact No………………………………

92

Observation (please put for the most appropriate opinion)

1. In which bank you have account?
HDFC ICICI ING Vysya
Kotak Mahindra 11DBI
Any other (…………………..) Please specify

2. Are you satisfied with the service provided by your bank?
Yes No can’t say

3. What is the worst feature of your current bank according to you?
Extra charges Lack of branches
Employee’s attitude Less banking hours

4. Average minimum balance maintained in your savings A/c?
Below 10,000 10,000-15,000
15,000-2o,000 above 20,000

5. Average minimum balance maintained in your current account?
Below 15,000 0 15,000-25,000
25,000-40,000 Above 1,00,000

6. Which facility do you consider the most important while opening an A/c?
Convenience/location Banking hours
Quality of service Less AQB*

93

7. Which is the most preferred method of banking transaction?
Over the counter ATM
Internet / phone banking Doorstep service

8. Your preferred method of making payments?
Cash Cheque
Fund transfer Demand draft.
9. Investment in Bank is profitable.
Yes No
Can't say

THANK YOU VERYMUCH FOR TIME AND COOPERATION!

94

FINDING AND ANALYSIS

To show my finding and analysis which I have done with the help of internet,
questionnaire and personal interview with the bank employees and also with the
account holders in various branches.

ANALYSIS

General Analysis:

In general it is seen that people are satisfied with the services of the bank. Very
few are not satisfied with the banking services provided by their bank.

Satisfaction of people

100
80
60

40
20

0
Yes No Can't Say

After examining the minimum balance 1 find that in general people maintain a
balance of greater than Rs.2o, 000 in Saving account and greater than 1,00,000 in
case of Current account. So the company’s policy of maintaining an AQB does not
affect the customer base of the bank.

95

Minimum Balance maintained in a Savings Account

50

40

30

20

10

0
<10,000 10,000-15,000 15,000-20,000 >20,000

Minimum Balance maintained in Current Account

50
40
30
20
10
0
<15,000 15,000- 40,000- >1,00,000
40,000 1,00,000

96

People in general look for quality service from bank and then for a nearby
location. AQB plays a minimum role in the entire process of selecting bank.

Important factors for Account

7%
35%
Convenience
Banking Hours
Quality of Service
38% Less AOB

20%

The banking services that are availed by the people at large are ATM. Even with
up gradation of technology people prefer using Internet / Phone banking. Doorstep
service has minimum effect, as people do not rely on handing their money to
people rather they feel much more secured in transacting or transferring their
money through any Internet media.

97

50
40
30
20
10
0
Over the counter ATM Internet/Phone Doorstep
Banking

People in general do not like doing money transactions in Cash, as it is not as safe
as also sometimes there are problems with the notes. Majority of people prefer
Cheques, Demand draft has its own customer, and Electronic fund transfer is
steadily becoming popular.

Money Transactions

21% 18%

Case
Cheque
Demand Draft
21% Fund transfer
40%

98

SATISFACTION LEVEL:

In market biggest competitor of HDFC bank is 1CICI bank and after examining
the data I find that the satisfaction level of HDFC Bank is comparatively lower

than the ICICI Bank customers of IDBI, Kotak Mahindra and other banks are also
satisfied at much extent.

SATISFACTION LEVEL

40
35
30
25
20
15
10
5
0
HDFC ICICI IDBI KOTAK OTHER
MAHINDRA BANKS

The reason that people give for their dissatisfaction with HDFC Bank is
represented in the graph below:

I find that the major reasons for dissatisfaction among the people are due to Lack
of branches since ICICI have more branches than HDFC, however majority of
people are dissatisfied with extra charges of ICICI which can be spare by HDFC,

99

to remain in the competition the bank should also take some steps to open new
branches so that it can compete with ICICI which is the market leader with the
maximum customer base.

20%

Lack of branches
40%
Less banking hours
Extra charges
15%
Employee's attitued

25%

The ICICI bank has a customer base of even larger than all the private banks in the
city. HDFC bank has an impressive customer base after ICICI bank.

100

Bank Preference

24% HDFC
25%
ICICI
KOTAK MAHINDRA
5% IDBI
ING VYSYA
11%
28%
OTHER BANKS
7%

Age:

First of all on examining the data segment-wise:

I find that people at large maintain a balance of greater than Rs.io, 000 in their
savings account. Only people in the age —group of 36-45 prefer keeping their
money less in savings account. Why is it so? The most probable reason might be
that people of this age group prefer to invest their money in various insurance
schemes or mutual funds. In the Age group of 26-35 people have lesser
responsibility so they prefer to keep their money in Savings Account.

101

Quality of service and then to convenience. Even Banking hours do play important
criteria. So people are concerned more with the services than with the minimum
balance.

Important factors of opening an Account

40
35
30 Convenience
25
Banking Hours
20
Quality of Serviece
15
10 Less AQB
5
0
18-25 26-35 36-45 46 and above
Age Group

On examining the banking preference 1 find that all the age group prefers ICICI
bank. The preference may be due to the quality of service available to the people.
Other bank lags behind ICICI, in terms of their market share. HDFC is far close to
ICICI. However majority of people are dissatisfied over the extra charges of ICICI
bank.

102

BANK PREFERENCE

30
25
18-25
20
26-35
15
36-45
10
46 and above
5
0
HDFC ICICI KOTAK IDBI ING VYSYA OTHER
MAHINDRA BANKS

BANK

After examining why HDFC lags behind ICICI I find many reasons ranges from
lack of branches to employee’s attitude it can be represented in the graph below
and it shows unsatisfied people want more branches and more banking hours.

103

Reasons for dissatisfaction

30
25
18-25
20
26-35
15
36-45
10
46 and above
5
0
Employee's attitude Extra Charges Less banking hours Lack of branches

Age Group

MONTHLY INCOME:

In this I will be analyzing the trend and preference of different income group
individually. First I will see the bank preference of various income groups.

Income Group: Below Rs 30,000

it is evident from the survey data that ICICI is the front-runner of the industry and
HDFC is the closest competitor of ICICI particularly in this segment. Other banks
like 1CM, ING VYSYA have very small customer base.

104

Banking Preference MI<30k

16%
28%
2% HDFC
4% ICICI
IDBI
KOTAK MAHINDRA
13% ING VYSYA
OTHER BANKS
37%

Income Group: Rs 30,000-45,000
In this category people wants to spend on other banks means public sector banks
interestingly in this category people gave preference to HDFC over the ICICI
bank.

Banking Preference

41% 25%
HDFC
ICICI
IDBI
KOTAK MAHINDRA
ING VYSYA
15%
1% OTHER BANKS
4% 14%

105

Income Group: Rs 45,000-60,000

In this category HDFC enjoys a good market share and I can also say that HDFC
is most popular in this income segment as compare to other income group. One
finding also can be observed that the preference for IDBI is more than the ICICI,
OTHER BANKS also representing the potential market share.

Banking Preference MI 45-60

25% HDFC
39% ICICI
IDBI
KOTAK MAHINDRA
6%
ING VYSYA
2% OTHER BANKS
18% 10%

106

Income group: Above Rs 60,000

In this category the preference for ICICI bank has increased remarkably. The
reason for this increased preference can be their quality of service, PUBLIC
SECTOR banks again representing a good market share, HDFC have less
customer base in his category. As a whole I can say from the survey done that
ICICI is the most preferred in the private sector banks, public sector banks have
their own strong customer base in private sector banks only HDFC is giving
challenge to ICICI which is followed by other banks like JDBI, KTAK
MAHINDRA and ING VYSYA.

Banking Preference MI 60

10% HDFC
29%
ICICI
IDBI
KOTAK MAHINDRA
38% ING VYSYA
10%
8% OTHER BANKS
5%

107

OCCUPATION :

Banking Preference of Govt. service holders

19% HDFC
ICICI
48%
IDBI
KOTAK MAHINDRA
24% ING VYSYA
OTHER BANKS
0%
0% 9%

Banking Preference of Pvt. service holders

18% HDFC
27%
ICICI
IDBI
5% KOTAK MAHINDRA
23% ING VYSYA
OTHER BANKS

9% 18%

108

Occupation group especially the govt. servants gave preference to banks like
SBI,BOB and PNB and remaining people having choice of ICICI, HDFC and
IDBI having equal customer base in this category.

Banking Preference of businessman

27% 20% HDFC
ICICI
IDBI

6% KOTAK MAHINDRA

25% ING VYSYA
OTHER BANKS
14%
8%

This category is largely dominated by smaller and lesser heard of banks like the
Andhra bank, J&K hank which provide customized services to the small number
of customers and where the businessman is looking for personalized
communication and greater flexibility in transactions. ICICI have more customer
base than ICICI in this category.

109

Banking Preference of professionals

HDFC
32% 35% ICICI
IDBI
KOTAK MAHINDRA
0%
ING VYSYA
OTHER BANKS
2% 29%
2%

People like Doctors, Teachers gave preference to HDFC over ICICI which
indicates towards the fact that they don’t mind paying a little more for better
services but then again cost is still a factor for them along with the quality of
services.

Minimum balance maintained in Saving Account

50
40 <10,000
30 10,000-15,000
20 15,000-20,000
10 >20,000
0
18-25 26-35 36-45 46 and above
Age-Groups

110

Minimum balance maintained in current account
45
40
35
Population %

30
25
20
15
10
5
0
<15,000 15,000-40,000 40,000-1,00,000 >1,00,000
In Rs

In current account minimum balance maintained according to the mode and
transaction of business however in general people maintain the balance between
15,000-40,000 then below the 15,000 very less people maintain the balance lower
than 1,00,000.

Thus, as whole people do not have a problem in maintaining the minimum
balance. Today’s customer gives more importance not to AQB but rather to the
For the purpose of this research it was absolutely imperative for me to find out
what the consumers want from their banks. It was also necessary to find out the
consumer’s profile, i.e. his age, monthly income, occupation and sex and also the
current bank with whom he/she is banking. This required me to get a detailed
questionnaire filled by the concerned person. All the analysis in the report is
drawn out of these questionnaires. For carrying out the competitor analysis further
help was taken from bank websites and journals.

A detailed area wise analysis was also carried out to find out which bank was most
prevalent in a particular area.

This research will provide HDFC bank with information like the current market
share of banks and also a detailed analysis of the services offered by other banks
and what are the most important criteria for selecting a particular bank. The bank

111

can also get data on prospective customers by designing its product offerings and
marketing strategy in a way so as to attract more clients in the near future.

112

CONCLUSIONS
As per the finding and Analysis of my project comparative study of HDFC Bank
with other banks, I reached to the conclusions regarding the savings account and
current account in different banks. First among them is that there is a wide
difference between the minimum balance required to open a accounts in various
banks and when a customer thinks to open a account the first thing that he inquires
is the minimum balance required which is in financial terms the Average quarterly
balance (AQB) which has to be maintained quarterly. All the Banks like HDFC,
ICICI, and Kotak Mahindra have minimum AQB of 5,000 in savings account and
10,000 in current account i.e. their target market is elite Class. Also I have
observed that almost all the banks are providing ATM cum Debit card along with
accounts and some of the banks are giving free ATM transaction from any of the
ATM. Some of the banks are giving free balance inquiry and some 8 TO 8
banking

Internet banking and Mobile banking are yet other modern features which
customers get on opening an account. Some banks give some value added scrvices
like Utility payment, Doorstep Banking and free third party cash payment, RTGS.
Banks like HDFC and ICICI have intercity banking and Inter branch banking.

Banks are also providing loyalty services to the loyal customers like on every
ATM transaction of more than a certain limit a customer gets some points and on
accumulation of 25 or 50 points a customer gets a special gift. Some banks like are
also giving free of cost Credit card to their customers.

113

RECOMMENDATIONS

1. The bank should try to improve the ATM Services, as it is one of the major
reasons for dissatisfaction among the customers as majority of those who
were dissatisfied where on account of non availability of cash in ATM,s

2. The bank should increase the number of BRANCHES in the city as people
feel that the bank has very few BRANCHES in the city.

3. The bank needs to make people aware about the basic concept of accounts
and the benefits they can derive out of it and also the differential features of
its different account as compared to other banks. More than 65% of the
people did not even know about the concept and features of different
accounts of the bank..

4. Also it was found in my analysis that the customers don’t really mind
keeping a high balance in their account and the bank should tap this fact by
keeping a higher AQB and reduce the charges of different services which
customers have a problem paying for. Only around io% of the customers
considered it to be an important issue for deciding on their banking
preferences.

5. It was also found in my analysis that people want free of cost doorstep
services since HDFC is having merely 2 branches in the city.

6. The bank should target individuals in the age group of 25+ for whom
maintenance of the AQB is not a problem.

114

7. The customer satisfaction levels are quite satisfactory in HDFC
bank(around 8o%of its existing customers were satisfied) among all banks
so the bank needs to work on its general image as such by promoting itself
as a bank which puts

“customers first” and not as the highest profit making bank.

8. When we talk about the banking preferences of businessmen then they are
looking for nation wide service and wide network of ATMs because of the
nature of their work thus the bank should work on this fact by making its
presence felt on a national level.

9. One very shocking result which has come out of our analysis is that as the
income of the customer rises his preference for our bank falls, which is
contrary to the bank’s objective thus the bank needs to check on this result
and work on factors responsible for the same which could range from lack
of concern shown by the bank to the fact that people do not like the breech
of privacy which private banks do my making calls for other products of the
bank on repetitive basis. Thus the bank needs to respect this right of the
customer and not make unsolicited calls to them and also remember that
they can no longer survive by taking customers for a ride.

10. Though the bank offers many free services but the customers or they still do
not trust this service what ever the reason the bank can popularize this
service to gain an edge over nationalized banks.

11. One complain which really came up during the course of my market
research was that most of the customers felt that the sales agents who
approach them on behalf of the bank are not qualified enough to perform
the task for this esteemed bank and thus we recommend that college

115

students or fresh graduates from reputed colleges can be hired on part time
basis for this job.

12. Quality of service has been rated highly important by all demographic
factors as a reason for banking with a particular bank, HDFC bank needs to
improve the services provided to its existing customers before attracting
more in the future and use word of mouth as a promotional tool to increase
the sales potential of its accounts.

116

BIBLIOGRAPHY

Websites:

• www.hdfcbank.com

• www.google.com

• www.icicibank.com

• www.idbibank.com

• www.wildpedia.org.

• www.kotak.com

Books:

• Marketing Research an applied orientation By Naresh.k.malhotra

• Marketing Management By Philip Kotler & Kevin Keller

117

Annexure
Financial Highlights
Financial performance in 2007-08 (Rs. In crores) Rs in crore

For the year ended For the year ended

3 1-Mar-08 31-Mar-07

Deposits and Other Borrowings 105,247.50 71,113.30
Advances 63,426.90 46,944.80
Total Income 12,398.20 8,164.2*
Profit before Depreciation and Tax 2,552.40 1,858.40
Net Profit 1,590.20 1,141.50
1,932.00 1,455.00
Profit brought forward
3,522.20 2,596.50
Total Profit available for Appropriation
Appropriations 397.5 285.4
Transfer to Statutory Reserve 159 114.1
Transfer to General Reserve
Transfer to Investment Reserve Account
(net) 38.5 3
Proposed Dividend 301.3 223.6
Tax including Surcharge and Education
Cess on Dividend 51.2 38
Dividend paid for Prior Years 0.1 0.4
Balance carried over to Balance Sheet 2,574.60 1,932.00

The Bank posted total income and net profit of Ks. 12,398.2 crores and Rs.
1,590.2 crores respectively for the financial year 2007-08 as against Rs. 8,164.2
crores and Rs. 1,141.5 crores respectively in the previous year. Appropriations
from the net profit have been effected as per the table given above.

118

Balance Sheet
as at March 31, 2008

Rs. Lacs
As at As at
Schedule 31-Mar-08 31-Mar-07
CAPITAL AND LIABILITIES
Capital 1 354,43 319,39
Reserves and Surplus 2 11,180,72 6,150,98
Minority Interest 2A 36,92 28,61
Deposits 3 100,631,38 68,264,27
Borrowings 4 4,478,86 2,815,39
Other Liabilities and Provisions 5 16,51076 13,729,61
Total 133,193,07 91,308,25
ASSETS
Cash and balances with Reserve Bank of India 6 12,553,18 5,075,25
Balances with Banks and Money at Call and Short notice 7 2,274,80 3,998,18
investments 8 49,288,01 30,567,04
Advances 9 63,426,90 46.944,78
Fixed Assets 10 1,196,29 907,53
Other Assets 11 4,453,89 3,735,47
Total 133,193,07 91,308,25
Contingent Liabilities 12 593,112,33 328,196,07
Bills for Collection 6,920,71 4,608,93
Notes and Principal Accounting Policies forming
integral part of the financial statements 19

119

Profit and Loss Account

Rs. Lacs
Schedule Year Ended Year Ended
31-Mar-08 31-Mar-07
I. INCOME
Interest earned 13 10,117,03 6,646,15
Other income 14 2,375,77 1,5Th28
Total 12,492,80 8,223,43

II. EXPENDITURE
Interest expended 15 4,887,37 3,179,30.
Operating expenses 16 3,826,36 2,473,97
Provisions and contingencies [includes provision for income
tax and fringe benefit tax of Rs. 701,97 lacs (previous year:
Rs. 501,56 lacs)] 17 2,186,86 1,426,70
Total 10,900,59 7,079,97

III. PROFIT
Net Profit for the year 1,592,21 1,143,46
Less: Mlnodty Interest 6,70 3,25
Add: Share In protils 01 Associates 9,56 10,76
Consolidated profit for the year attributable to the Group 1,595,07 1,150,98
Balance of profit brought forward 1,961,38 1,474,4
Total 3,556,43 2,625,80

120

IV. APPROPRIATIONS
Transfer to Statutory Reserve 397,55 285,36
Proposed dMdend 301,27 223,57
Tax (including cess) on dividend 51,20 38,00
Dividend (Including tax/cess thereon)
pertaining to previous year paid during the year 6 35
Transfer to General Reserve 159,02 114.14
Transfer to Capital Reserve - 4
Transler to Investment Reserve Account 38,50 2,98
Balance carded over to Balance Sheet 2,608,83 1,961,36
Total 3,556,43 2,625,80

V. EARNINGS PER EQUITY SHARE Rs. Rs.
(Face value Rs. 10!- per share) 18 46.37 36.59
Basic 45.74 36.36
Diluted
Notes and Principal Accounting Policies torming
integral part of the financial statements 19

121

Cash Flow Statement
Rs. Lacs
Particulars Year ended Year ended
31-Mar-08 31-Mar-07
Cash flows from operating activities 2,297,04 1,652,52
Net profit before Income tax
Adjustment for:
Depreciation 280,14 226,49
(Proflt)/Loss on Revaluation of investments (77,77) (5,99)
Amortisatlon of premla on investments 288,38 241,09
Loan Loss provisions 1,026,37 691,13
Provision against standard assets 189,66 169,86
Provision for wealth tax 45 40
Contingency provision 268,41 63,75
(Profit)/Loss on sale of fixed assets (72) 1,06
4,271,96 3,040,31

Adjustments for:
(increase) in Investments (18,920,01) (2,426,47)
(increase) in Advances (17,508,49) (1 2,573,61)
Increase/(Decrease) in Borrowings 1,663,47 (43,09)
increase in Deposits 32,367,11 12,517,13
(increase) in Other assets (406,35) (1,605,71)
increase/(Decrease) In Other liabilities and provisions 2,161,64 2,195,74
(increaso)fDecreaso in Deposit Placements 824,13 (269,40)
4,453A6 935,90
Direct taxes paid (net of refunds) (878,82) (377,00)
Net cash flow from operating activities 3,574,64 558,90

122

Cashi lows from Investing activities
Purchase of fixed assets (638,36) (324,51)
Proceeds from sale of fixed assets 9,77 2,07
Net cash used in investing activities (628,59) (322,44)
Cash flows from financing activities
Effect of consolidation of new subsidiary on cash and cash equivalents (4,02) -
Increase in Minorny Interest 8,31 3,25
Money received on exercise of stock options by employees 106,01 264,02
Proceeds from ADR issue net of underwting commission 2,393,86 -
Proceeds from preferential allotment 01 equity Shares 1,390,10 .
Proceeds from issue of subordinated debt - 1,680,60
Redemption of subordinated debt - (100,00)
Dividend provided last year paid dung the year (223,63) (172,58)
Tax on Dividend (39,00) (24,16)
Net cash generated from financing activities 3,632,63 1,641,13
Net increase in cash and cash equivalents 6,578,68 1,877,59
Cash and cash equivalents as at April 1 8,074,69 6,197,10
Cash and cash equivalents as at March 31 14,653,37 8,074,69

123

Financial Result Analysis

Balance Sheet: As of March 31, 2008
Total balance sheet size increased by 46.0% from Rs.91,236 crores as of March
31, 2007 to Rs.133,177 crores as of March 31, 2008. Total deposits were
Rs.l00,769 crores, an increase of 47.5% from March 31, 2007. With savings
account deposits of Rs.26,154 crores and current account deposits at Rs.28,760
crores, the CASA mix continued to remain healthy at around 54.5% of total
deposits as at March 31, 2008. Net advances as at March 31, 2008 were Rs.63,427
crores, an increase of

35.1% over March 31, 2007. The Bank’s total customer assets (including
advances, corporate debentures, investments in securitised paper, etc. net of loans
securitized and participated out) were Rs.70,403 crores as of March 31, 2008.

Profit & Loss Account: Year ended March 31, 2008
For the year ended March 31, 2008, the Bank earned total income of Rs.12,398.2
crores as against Rs.8,164.2 crores in the previous year. Net revenues (net interest
income plus other income) for the year ended March 31, 2008 were Rs.7,5 11.0
crores, up 50.7% over Rs.4,984.7 crores for the year ended March 31, 2007. Net
Profit for year ended March 31, 2008 was Rs. 1,590.2 crores, up 39.3%, over the
corresponding year ended March 31, 2007.

Dividend:
The Board of Directors recommended an enhanced dividend of 85% for the year
ended March 31, 2008, as against 70% for the previous year. This would be
subject to approval by the shareholders at the next annual general meeting.

124

Capital Infusion & Capital Adequacy:
In June 2007, the Bank allotted 1,35,82,000 equity shares on a preferential basis to
HDFC Ltd. aggregating to Rs. 1,390 crores. In July 2007, the Bank made a public
offering of 6,594,504 American Depositary Shares (ADS), aggregating to of Rs.
2,393 crores (net of underwriting discounts and commissions).

The Bank’s total Capital Adequacy Ratio (CAR) as at March 31, 2008 stood at
13.6% as against the regulatory minimum of 9.0%. Tier-I CAR was 10.3% as
against 8.6% as of March 31, 2007.

125

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