A Project Report on

“ANALYTICAL STUDY ON HDFC BANK WITH REFERENCE TO

GROWTH AND PROSPERITY.”
In partial fulfilment for the award of the degree of bachelors in commerce (HONOURS)

Submitted by
Baala Kumaran.S
HT NO. 110021407045

G Bhanu Prasad
HT NO. 110021407046

Bhuvan Gottam
HT NO. 110021407047

Dean Haniel Paul

HT NO. 110021407048

Under the guidance of

MRS JYOTHI SREE

Assistant Professor (Faculty Member)

Department of Commerce

OSMANIA UNIVERSITY
INDIAN INSTITUTE OF MANAGEMENT AND COMMERCE
KHAIRTABAD, HYDERABAD- 500004 (2021-2024)
 CERTIFICATE

This is to certify that Baala Kumaran, G Bhanu Prasad, Bhuvan Gottam, Dean Haniel Paul
bearing hall ticket number 110021407045, 110021407046, 110021407047, 110021407048
have satisfactorily completed the project work on ANALYTICAL STUDY ON HDFC
BANK WITH REFERENCE TO GROWTH AND PROSPERITY under the guidance of Mrs
Jyothi Sree (Asst.Professor) in partial fulfilment for the award of degree of B.com (Honors)
during the period 2021-2024. The results embodied in this report have not been submitted to
any other universities or institutions for award for any degree/diploma/certificate.

Sri K. RAGHUVEER
(Principal)

Mrs. JYOTHI SREE

(Project Supervisor)

External Examiner
 DECLARATION

BAALA KUMARAN, G BHANU PRASAD, BHUVAN GOTTAM, DEAN HANIEL

PAUL students of Indian Institute of Management and Commerce UG and PG College,
Affiliated to Osmania University hereby declare that the project work entitled
“ANALYTICAL STUDY ON HDFC BANK WITH REFERENCE TO GROWTH AND
PROSPERITY” is submitted by us for the course completion of graduation B.COM
(HONORS) is a record carried out by us during the academic year 2021-2024 under the
guidance of Mrs. JYOTHI SREE (Asst. Professor) and has not formed the basis of award
for any degree, diploma, titles in this or any other universities or similar universities.

Mr. Baala Kumaran. B. Com (Honours)

Mr. G Bhanu Prasad. B. Com (Honours)

Mr. Bhuvan Gottam. B. Com (Honours)

Mr. Dean Haniel Paul. B. Com (Honours)

DATE:

PLACE:
 ACKNOWLEDGEMENT

The present project “ANALYTICAL STUDY ON HDFC BANK WITH REFERENCE

TO GROWTH AND PROSPERITY” wouldn’t have been successfully completed without
the efforts of many people. We would like to convey our warm regards to all those people
who are a part of it. We sincerely express our gratitude to Sri K. Raghuveer, Principal, Indian
Institute of Management and Commerce.

We are ineffably indebted to Mrs. JYOTHI SREE (Asst.Professor), Faculty at IIMC for
continuous guidance to accomplish this project.

We also acknowledge, our gratitude towards faculty members, parents and members of our
families, who always supported us.
ABSTRACT

This project mainly deals with HDFC bank, its objectives, missions, strategies, growth, goals
and analytical data. The project involves history of banking, banking structure in India, what
are public sector banks and private sector banks how they are founded, and brief information
about few public and private sector banks for better understanding about various banks.
Complete information about HDFC bank is noted in the project like, how it is established,
what are its primary objectives, goals, functions, annual plans, and steps taken to build their
goodwill, their improvement and finally their success in respect of their competitors.
The main theme of the project is to discuss the elements of HDFC bank, the reasons for its
growth and success by collecting secondary data from various sources. The secondary data
source includes information about Balance sheets, Deposits, Advances, Profit after Tax,
Return on Equity, Return on assets, Customer growth, and finally annual revenue for the 3
years i.e. from 2021 to 2023 and for the purpose of analytical study.
 TABLE OF CONTENTS
CHAPTER NO. CONTENTS PAGE NO.

1 INTRODUCTION 1-15
1.1- INTRODUCTION
1.2- NEED OF THE STUDY
1.3- OBJECTIVES OF THE STUDY
1.4- RESEARCH METHDOLOGY
1.5- SCOPE OF THE STUDY
1.6- LIMITATIONS OF THE STUDY

2 16-18

2. REVIEW OF LITERATURE

3 COMPANY PROFILE 19-41

4 DATA ANALYSIS AND INTERPRETATION 42-51

5 FINDINGS, SUGGESTIONS AND 52-54

CONCLUSION

5.1- FINDINGS

5.2- SUGGESTIONS

5.3- CONCLUSION

BIBLIOGRAPHY 55-56

REFERENCES

WEBSITES
 CHAPTER – I
INTRODUCTION

1
1.1 INTRODUCTION

HISTORY OF BANKING
Banking is nearly as old as civilization. The history of banking could be said to have started
with the appearance of money. The first record of minted metal coins was in Mesopotamia in
about 2500B.C. the first European banknotes, which was handwritten appeared in1661, in
Sweden. Cheque and printed paper money appeared in the 1700’s and 1800’s, with many banks
created to deal with increasing trade.

The history of banking in each country runs in lines with the development of trade and industry,
and with the level of political confidence and stability. The ancient Romans developed an
advanced banking system to serve their vast trade network, which extended throughout Europe,
Asia and Africa.

Modern banking began in Venice. The word bank comes from the Italian word “ban co”,
meaning bench, because moneylenders worked on benches in market places. The bank of
Venice was established in 1171 to help the government raise finance for a war.

At the same time, in England merchant started to ask goldsmiths to hold gold and silver in their
safes in return for a fee. Receipts given to the Merchant were sometimes used to buy or sell,
with the metal itself staying under lock and key. The goldsmith realized that they could lend
out some of the gold and silver that they had and charge interest, as not all of the merchants
would ask for the gold and silver back at the same time. Eventually, instead of charging the
merchants, the goldsmiths paid them to deposit their gold and silver.

The bank of England was formed in 1694 to borrow money from the public for the government
to finance the war of Augsburg against France. By 1709, goldsmith was using bank of England
notes of their own receipts.

New technology transformed the banking industry in the 1900’s round the world, banks
merged into larger and fewer groups and expanded into other country.

2
 INDIAN BANKING SYSTEM

Reserve Bank of India

Schedule Banks
Non-Schedule Banks

Central co-op
State co-op Commercial Banks Banks and Primary Commercial Banks
Banks
Cr. Societies

Indian Foreign

Public Sector Banks

Private Sector Banks HDFC,
ICICI etc.

State Bank of India Other Nationalized Banks Regional Rural

and its Subsidiaries Banks

3
BANKING STRUCTURE IN INDIA:

In today’s dynamic world banks are inevitable for the development of a country. Banks play a
pivotal role in enhancing each and every sector. They have helped bring a draw of development
on the world’s horizon and developing country like India is no exception.

Banks fulfils the role of a financial intermediary. This means that it acts as a vehicle for moving
finance from those who have surplus money to (however temporarily) those who have deficit.
In everyday branch terms the banks channel funds from depositors whose accounts are in credit
to borrowers who are in debit.

Without the intermediary of the banks both their depositors and their borrowers would have to
contact each other directly. This can and does happen of course. This is what has led to the
very foundation of financial institution like banks.

The bank have developed their roles to such an extent that a direct contact between the
depositors and borrowers in now known as disintermediation.

Banking industry has always revolved around the traditional function of taking deposits, money
transfer and making advances. Those three are closely related to each other, the objective being
to lend money, which is the profitable activity of the three. Taking deposits generates funds for
lending and money transfer services are necessary for the attention of deposits. The bank have
introduced progressively more sophisticated versions of these services and have diversified
introduction in numerable areas of activity not directly relating to this traditional trinity.

4
INTRODUCTION OF PUBLIC BANKS:

Public Sector Undertakings (Banks) are a major type of government owned banks in
India, where a majority stake (i.e. more than 50%) is held by the Ministry of Finance of the
Government of India or State Ministry of Finance of various State Governments of India. The
shares of these government-owned-banks are listed on stock exchanges. Their main objective
is social welfare.

Emergence of public sector banks, The Central Government entered the banking,
business with the nationalization of the Imperial Bank of India in 1955. A 60% stake was
taken by the Reserve Bank of India and the new bank was named State Bank of India. The
seven other state banks became subsidiaries of the new bank in 1959 when the State Bank of
India (Subsidiary Banks) Act, 1959 was passed by the Union government. The next major
government intervention in banking took place on 19 July 1969 when the Indira Gandhi
government nationalised an additional 14 major banks. The total deposits in the banks
nationalised in 1969 amounted to 50 crores. This move increased the presence of nationalised
banks in India, with 84% of the total branches coming under government control.

Before the economic liberalisation

The share of the banking sector held by the public banks continued to grow through the
1980s, and by 1991 public sector banks accounted for 90% of the banking sector. A year
later, in March, 1992, the combined total of branches held by public sector banks was 60,646
across India, and deposits accounted for 1,10,000 crore. The majority of these banks was
profitable, with only one out of the 21 public sector banks reporting a loss.

Liberalisation in the 2000s

The nationalised banks reported a combined loss of 1160 crores. However, the early 2000s
saw a reversal of this trend, such that in 2002-03 a profit of 7780 crores by the public sector
banks: a trend that continued throughout the decade, with a 16856 crore profit in 2008-2009.

5
Mergers
The consolidation of SBl-associated banks started first by State Bank of India merging its
subsidiary State Bank of Saurashtra with itself on13 August 2008. Thereafter it merged State
Bank of Indore with itself on August 27, 2010. The remaining subsidiaries, namely the State
Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of
Patiala and State Bank of Travancore, and Bharatiya Mahila Bank were merged with State
Bank of India with effect from 1April 2017.
Vijaya Bank and Dena Bank were merged into Bank of Baroda in 2018. IDBI Bank was
categorised as a private bank with effect from January 2019.On 30 August 2019,Finance
Minister Nirmala Sitharaman announced the government's plan for further consolidation of
public sector banks: Indian Bank's merger with Allahabad Bank (anchor bank Indian Bank);
Punjab National Bank's merger with Oriental Bank of Commerce and United Bank (anchor
bank – Punjab National Bank); Union Bank of India's merger with Andhra Bank and
Corporation Bank (anchor bank - Union Bank of India); and Canara Bank's merger with
Syndicate Bank (anchor bank - Canara Bank). The mergers took effect from 1 April 2020.

Central Public Sector Undertakings (Banks)

Nationalised Banks
Govt. Shareholding % as at March 2022
1. State Bank of India (57.59%)
2. Bank of Baroda (63.97%)
3. Canara Bank (62.93%)
4. Punjab National Bank (73.15%)
5. Indian Bank (79.86%)
6. Union Bank of India (83.49%)
7. Bank of India (81.41%)
8. Central Bank of India (93.08%)
9. Bank of Maharashtra (90.90%)
10. UCO Bank (95.39%)
11. Indian Overseas Bank (96.38%)
12. Punjab and Sind Bank (98.25%)

6
PRIVATE SECTOR BANKS:
In India the private sector banks consist of the
Following three categories:
(i) Private Scheduled Banks
(ii) Private Non-scheduled Banks
(iii) Foreign Banks

Private Scheduled Banks is functioning on par with the other public sector banks in various
respects. Since, they have been included in the second schedule of Reserve Bank of India
Act; they are enjoying the privileges as Public and Private Sector Banks that of any other
scheduled banks. These privileges, importantly, include refinance facility from RBI and
participation in money market activities.

The joint stock banks in the private sector in India numbered 35 at present out of which 34
are scheduled banks and one non-scheduled bank. Of the 34 private sector banks, 9 are newly
set up under liberalised policy. These banks together accounted for 10.3 per cent of total
assets of all commercial banks in India as on 31st March 1998. They have made net profit of
Rs. 841.88 crore during 1997-98 as compared to Rs. 685.77 crore in 1996-97.

The foreign banks in private sector are the branches of banks incorporated in foreign
countries. There are 42 foreign banks in India. Their branches are mainly located in the big
cities. The foreign banks perform mostly the same range of services as being performed by
local banks. However, they are more active players in export/import trade and transactions
relating to foreign exchange operations. The role of foreign banks is also important for the
development of the economy of the country, particularly for the development of foreign
trade.

7
The private sector banks play a vital role in the Indian economy. They indirectly motivate the
public sector banks by offering a healthy competition to them. The following are their
importance:
(i) Offering high degree of Professional Management:
The private sector banks help in introducing a high degree of professional management and
marketing concept into banking. It helps the public sector banks as well to develop similar
skill and technology.

(ii) Creates healthy competition:

The private sector banks provide a healthy competition on general efficiency levels in the
banking system.

(iii) Encourages Foreign Investment:

The private sector banks especially the foreign Banks have much influence on the foreign
investment in the country.

(iv) Helps to access foreign capital markets: The foreign banks in the private sector
help the Indian companies and the government agencies to meet out their financial
requirements from international capital markets. This service becomes easier for them
because of the presence of their head offices/other branches in important foreign centres. In
this way they help a large extent in the promotion of trade and industry in the country.

(v) Helps to develop innovation and achieve expertise:

The private sector banks are always trying to innovate new products avenues (new schemes,
services, etc.) and make the Indus-tries to achieve expertise in their respective fields by
offering quality service and guidance. They introduce new technology in the banking service.
Thus, they lead the other banks in various new fields. For example, introduction of
computerised operations, credit card business, ATM service, etc.
This apart in the early stages of banking activity in India, native bankers called in-digenous
bankers and moneylenders were operating in the unorganised sector. They are not permitted
to undertake banking business presently. They also do not come under the provisions of
Banking Regulation Act.

8
List of Private Sector Banks in India (As of March 2022)

1. Axis Bank
2. Bandhan Bank
3. CSB Bank
4. City Union Bank
5. DCB Bank
6. Dhanlaxmi Bank
7. Federal Bank
8. HDFC Bank
9. ICICI Bank
10. IDBI Bank
11. IDFC FIRST Bank
12. Induslnd Bank
13. Jammu & Kashmir Bank
14. Karnataka Bank
15. Karur Vysya Bank
16. Kotak Mahindra Bank
17. Nainital bank
18. RBL Bank
19. South Indian Bank
20. Tamilnad Mercantile Bank
21. YES Bank

9
 STATE BANK OF INDIA (SBI)
State Bank of India (SBI) multinational public sector bank and financial is an Indian services
statutory body headquartered in Mumbai, Maharashtra. SBI is the 49th largest bank in the
world by total assets and ranked 221st in the Fortune Global 500 list of the world's biggest
corporations of 2020, being the only Indian bank on the list. It is a public sector bank and the
largest bank in India with a 23% market share by assets and a 25% share of the total loan and
deposits market. It is also the fifth largest employer in India with nearly 250,000 employees.
On 16th Aug 2022 an attempt to facilitate and support start-ups in the country, the State Bank
of India (SBI) announced the launch of its first "state-of-the-art" dedicated branch for start-
ups in the country in Bengaluru. As of 31 March 2017, the SBI group had 59,291 ATMs.
Since November 2017, SBI also offers an integrated digital banking platform named YONO.
Yes Bank Investment
State Bank of India acquired 48.2% of the shares of Yes Bank as part of RBI directed rescue
deal in March 2020.
Employees
SBI is one of the largest employers in the world with 245,652 employees as on 31 March
2021. Out of the total workforce, the representation of women employees is nearly 26%. The
percentage of Officers, Associates and Subordinate staffs was 44.28%, 41.03% and 14.69%
respectively on the same date. Each employee contributed a net profit of 828,350
(US$10,000) during FY 2020-21.

ICICI BANK LIMITED

ICICI Bank Limited is an Indian Private bank. It is headquartered at Mumbai. It offers a wide
range of banking products and financial services for corporate and retail customers through a
variety of delivery channels and specialized subsidiaries in the areas of investment banking,
life, non-life insurance, venture capital and asset management. The Industrial Credit and
Investment Corporation of India (ICICI) was established on 5 January 1955 and Sir Arcot
Ramasamy Mudaliar was elected as the first Chairman of ICICI Ltd
This development finance institution has a network of 5,275 branches and 15,589 ATMs
across India and has a presence in 17 countries.
Products
ICICI Bank offers products and services such as online money transfers, tracking services,
current accounts, savings accounts, time deposits, recurring deposits, mortgages, loans,
automated lockers, credit cards, prepaid cards, debit cards and digital wallets called ICICI
pocket. IClCI bank launched 1CICIStack' which provides online services such as payment
options, digital accounts, instant car loans, insurance, investments, loans etc.
In 2014, the bank launched a mobile banking app. ICICI Bank has operations in Bahrain,
Germany, Europe, Hong Kong, and China also.

10
 Punjab National Bank:

Punjab National Bank (abbreviated as PNB) is an Indian public sector bank based in New
Delhi. It was founded in May 1894 and is the third-largest public sector bank in India in
terms of its business volumes, with over 180 million customers, 12,248 branches, and
13,000+ ATMs.

PNB has a banking subsidiary in the UK (PNB International Bank, with seven branches
in the UK), as well as branches in Hong Kong, Kowloon, Dubai, and Kabul. In Nepal, PNB
owns 20% of Everest Bank, which has 122 branches.

The bank incurred 3.24 crore (US$410,000) on corporate social responsibility activities like
medical camps, farmer training, tree plantations, blood donation camps etc. During the year
2018-19, PNB has also taken the initiative for donations to CM relief fund for Kerala and
Kumbh Mela. For the year FY18-19, PNB has initiated ₹1,851.41 for RSETIS.
To help young talents in India the bank also initiated PNB Hockey Academy, one of the
major efforts towards supporting the national games.
As on 31 March 2019, the bank had 70,810 employees. As of 31 March 2019, it also had
1,722 employees with disabilities on the same date (2.43%).

Axis Bank
Axis Bank Limited, formerly known as UTI Bank (1993- 2007), is an Indian banking and
financial services company headquartered in Mumbai, Maharashtra. It is India's third largest
private sector bank by assets and Fourth largest by Market capitalisation. It sells financial
services to large and mid-size companies, SMEs and retail businesses. The bank was founded
on 3 December 1993 as UTI Bank, opening its registered office in Ahmedabad and a
corporate office in Mumbai. The bank was promoted jointly by the Administrator of the Unit
Trust of India (UTI), Life Insurance Corporation of India (LIC), General Insurance
Corporation, National Insurance Company, The New India Assurance Company, The
Oriental Insurance Corporation and United India Insurance Company. On 30 July 2007, UTI
Bank changed its name to Axis Bank. Services provided by axis bank, Retail banking,
corporate banking, international banking. Number of employees in axis bank are 91,898.

Subsidiaries: Axis Capital Ltd. was incorporated in India as a wholly owned subsidiary of the
bank on 6 December 2005 and received its certificate of commencement of business on 2
May 2006. Certain businesses of M/s. Enam Securities Pvt. Ltd. were merged with Axis
Capital Ltd. as part of a scheme and the following companies became direct subsidiaries of
Axis Capital:

1. Axis Securities Ltd. (formerly Enam Securities Direct Pvt. Ltd.)

2. Axis Finance Ltd. (formerly Enam Finance Pvt. Ltd.)
3. Axis Securities Europe Ltd. (formerly Enam Securities Europe Ltd.)

11
 UNION BANK OF INDIA
Union Bank of India is one of the largest government-owned banks in India. It was
established in 1919 as a limited company in Mumbai. Over the years, it has grown and
expanded its operations across the country. In 1969, Union Bank of India became a
nationalized bank, which means it came under the ownership and control of the Indian
government. Since then, it has continued to serve its customers and adapt to the changing
banking landscape.

Subsidiaries
1. Union Asset Management Company Pvt. Ltd. – It is the asset management arm of Union
Bank of India, offering a range of mutual fund products.
2. Union Bank of India (UK) Ltd. – It is a subsidiary of Union Bank of India in the United
Kingdom, providing banking services to customers in the UK.
3. Union Bank of India (Australia) Ltd. – It is a subsidiary of Union Bank of India in
Australia, providing banking services to customers in Australia.
4. Union Bank of India (International) Ltd. – It is a subsidiary of Union Bank of India,
catering to the banking needs of customers outside India.

KOTAK MAHINDRA BANK

Kotak Mahindra Bank has an interesting evolution story! It was founded in 1985 by Mr.
Uday Kotak as a non-banking financial company. Over the years, it grew and diversified its
services. In 2003, it received the banking license from the Reserve Bank of India and became
Kotak Mahindra Bank. Since then, the bank has expanded its operations, acquired other
financial institutions, and established a strong presence in the Indian banking sector. Today, it
is known for its innovative products, customer-centric approach, and commitment to
excellence.
Subsidiaries
Sure, let me tell you about some of the subsidiaries of Kotak Mahindra Bank. Kotak
Mahindra Bank has a diverse range of subsidiaries that operate in different sectors. Some
notable subsidiaries include:
1. Kotak Mahindra Prime Limited: It is a subsidiary that focuses on providing automotive
finance and vehicle loans.
2. Kotak Securities Limited: This subsidiary offers a wide range of financial services,
including stockbroking, investment banking, and distribution of financial products.
3. Kotak Mahindra Life Insurance Company Limited: It is a subsidiary that provides life
insurance solutions to individuals and families.
4. Kotak Mahindra Asset Management Company Limited: This subsidiary manages various
mutual fund schemes and offers investment solutions to investors.

12
 CANARA BANK:
Founded in 1906 by Ammembal Subba Rao Pai in Mangalore, Canara Bank has evolved into
one of India's premier public sector banks. With its headquarters situated in Bengaluru,
Karnataka, the bank has played a crucial role in the country's economic development and
financial inclusion. Canara Bank's inception marked a significant milestone in the banking
history of India. Over the years, it has grown from a regional bank to a national and
international financial institution. The bank's commitment to financial prudence, ethical
practices, and customer-centricity has been instrumental in its sustained growth.
Product and Service Offerings:
The bank offers a wide array of financial products and services catering to the varied needs of
its customers. This includes savings and current accounts, fixed and recurring deposits, home
loans, personal loans, business loans, and a range of investment and insurance products.
Canara Bank's focus on innovation has led to the introduction of digital banking services,
providing customers with convenient and secure banking solutions.
Social Initiatives and Corporate Social Responsibility (CSR):
Canara Bank actively engages in various social and community development initiatives
through its CSR programs. The bank has been involved in supporting education, healthcare,
environmental sustainability, and other community welfare projects.

Karur Vysya Bank (KVB):

Established in 1916 in Karur, Tamil Nadu, Karur Vysya Bank (KVB) has evolved into a
prominent player in the Indian banking sector. From its inception, the bank has been guided
by a commitment to serving the financial needs of the local community and has since
expanded its footprint across the country. KVB was founded with the aim of providing
banking services to the business community in Karur and surrounding regions. Over the
decades, the bank has adhered to its founding principles while adapting to the changing
financial landscape, resulting in steady growth and a broader customer base.
Product Portfolio and Financial Offerings:
KVB offers a diverse range of financial products and services to meet the multifaceted needs
of its clientele. From traditional banking products such as savings and current accounts to
innovative offerings including personalized loans, insurance, and investment options, the
bank ensures a comprehensive suite of services catering to various financial requirements.
Technological Innovations and Digital Banking:
In acknowledgment of the digital era, KVB has invested significantly in technological
advancements. The bank provides user-friendly online banking platforms, mobile
applications, and other digital solutions to enhance the overall banking experience.
Beyond its core banking functions, KVB actively engages in community development
initiatives. The bank's corporate social responsibility (CSR) efforts encompass education,
healthcare, and environmental sustainability, reflecting its commitment to making a positive
impact on the communities it serves.

13
1.2 NEED OF STUDY:
The need for Analytical Study of HDFC Bank with reference to growth and prosperity
includes various aspects,
Financial Performance, to analyse HDFC Bank's financial statements over the years to
understand its revenue growth, profitability, asset quality, and efficiency ratios.
Market Positioning, HDFC Bank's market share in various banking segments like
corporate banking, and digital banking analyse its competitive strengths, customer base.

Risk Management: Evaluating HDFC Bank's risk management framework, including

credit risk, operational risk, and market risk. Assess the bank's ability to identify and mitigate
risks while maintaining growth momentum.
Corporate Governance: Examining HDFC Bank's corporate governance practices,
board composition, and transparency in disclosures. Strong corporate governance is crucial
for sustainable growth and investor confidence.
Regulatory Environment, how regulatory changes impact HDFC Bank's operations and
growth prospects. This includes compliance costs, changes in capital requirements, and
implications of regulatory reforms on lending practices.

Socio-Economic Impact: Investigating HDFC Bank's contribution to the economy

through lending to various sectors, supporting financial inclusion initiatives, and promoting
entrepreneurship. Assess its role in fostering economic growth and prosperity at both national
and regional levels.

1.3 OBJECTIVES:
Objectives of the study Include,
Innovation and Technology, how HDFC Bank adopts and leverages technology to
enhance customer experience, streamline operations, and introduce innovative products and
services. This can include digital banking platforms, mobile apps.

Customer Satisfaction and Loyalty: To Conduct surveys or analyse customer

feedback to gauge satisfaction levels and loyalty towards HDFC Bank's services. As High
customer satisfaction and retention rates are crucial indicators of long-term growth and
prosperity.

Future Outlook: Considering factors shaping HDFC Bank's future growth trajectory,
such as emerging trends in the banking industry, evolving consumer preferences, and
potential disruptors like regulatory changes or technological advancements.

14
1.4 RESEARCH METHODLOGY:

Collection of Data: To conduct market research, we firstly need to have necessary and
useful data available. Data collection is more of an art than science. The source of
information used in study is collected from various websites, articles, and many more.

Secondary Data
The data which is collected from the published sources i.e. not originally collected is called
secondary data. The secondary data source in our study is from different articles, and online
sources (websites) related to HDFC bank.

Sources of Data: Annual Reports of HDFC.

Data Analysis techniques

The secondary data will be studied and analysed approximately and interpreted to extract
certain facts. Whenever necessary, statistical tools and financial tools like pie charts, bar
diagrams will be used to present the findings effectively.

1.5 Scope of the Study:

The scope and period of the study is being restricted to the following:
1) The scope is limited to the operations of HDFC Bank.
2) The information obtained from the secondary data was limited to HDFC Bank.
3) The profit & loss, balance sheet was on the last three years.
4) Due to the time constraint, the duration of the study is limited.

Period of Study
The research was done in a span of 2 months period in the partial completion of degree final
year.

1.6 Limitations of the study:

1) The secondary data collected from websites may not be updated.
2) The data collected may not be accurate.

15
 CHAPTER II
REVIEW OF
LITERATURE

16
2. REVIEW OF LITERATURE:

1. Swami and Subrahmanyam, (1993) studied bank efficiency and profitability in the
Indian context. In Indian banks when profitability was the only objective till then not enough
studies were there. There have been made many attempts to compare profitability of various
categories of banks. Many of the studies were done to focus on profits within public sector
banks and compare them with profits of private sector banks and it was observed that Indian
banks are more focused on the enhancement of financial services rather than profitability.

2. Gani and Bhat (2003) conducted a comparative study on five branches of northen India
which included private sector, public sector and foreign banks. Random sampling method
was used over 800 customers of various demographic characteristics like age, income,
education, geographic location of bank and profession. SERVQUAL model was used. For
assessing the service quality of bank five dimensions were used like tangibility, reliability,
responsiveness, assurance, and empathy. The study concluded that service quality of foreign
banks was much better than the Indian banks and it was suggested that tangibility dimension
of Indian bank should improve the quality of service to customers.

3. Ram Mohan and Ray (2004) conducted a comparative study on the performance of
Indian commercial banks including public, private, and foreign banks using physical qualities
of input and outputs and compared revenue maximization efficiency of banks. This period of
study was 1992-2000.study concluded that public sector bank showed a better performance
than private sector bank but was head on with foreign banks. Thus the study concluded that in
post reform era the public sector bank performed much better than private sector banks.

4. Ghosh and Das (2005) it is empirical study on the depositor discipline in banking. It
focuses on the determinants of depositor discipline. Period of study was 1999-2003 and its
finding showed that in state owned banks, bank specific factors are dominant. The behaviour
of depositor in private banks depends on a systemic variable. In private and foreign banks
policy announcements have an important effect on dependant variable. In state owned banks
large assets mean larger deposits, insured depositor compels bank to give higher price on
deposits. Study concluded that deposit growth of banks are directly related to depositor
discipline

17
5. Hugar S.S. and Vaz N.H. (2008), studied the customer orientation in 5 public sector
banks 3 new private sector and 3 foreign banks. It was concluded that new private sector
banks had more ATMs as compared to SBI. Profits/employee and business/employee was
more in foreign banks where SBI had more complaints followed by ICICI. The study
suggested the public sector bank to adopt a model of Customer Relationship Manager (CRM)
to stand the competitive atmosphere. The study concluded that customer orientation in better
in private sector banks as compared to public sector.

6. Rao N. and Tiwari S. (2009) studied on the basis of deposits in 2005 the efficiency of 5
public sector banks. Study concludes that employee efficiency has very less impact on
deposit, advances and assets. These are positively affected by operating profits and operating
efficiency. Thus, deposits are only influenced by operating efficiency and operating profit per
branch.

7. Syed Ibrahim (2011) in his study states that Indian scheduled commercial banks have
improved their operational performance since 2000. There is a continuous elevation in total
deposits C-D ratio, investment deposit ratio.

8. Sujatha S. And Arumugam N. (2013) aimed on “Customer satisfaction in Indian banking

sector” view that before introducing various services to customers, banks should take care of
their needs. To serve customers with different occupations and educational backgrounds
banks should adopt strategies. There is a correlation between the satisfaction of the customer
and the performance of the banks. So it is important for banks to consider satisfaction of the
customer as a relationship marketing strategy.

9. Gokilamani, and Natarajan (2014) studied that customers of Indian commercial banks
are positively responding to retail banking. It is important for banks to focus on service
quality for strengthening their competitive edge and to allocate the limited resources to serve
the personal banking division. They further views that the success of a retail bank will depend
on product innovation, technological developments and strategies to retain the retail
customers.

10. Misra, B.S. (2003) did a field study to examine the allocative efficiency of Indian
banking system after the financial sector reforms in 1990s.This study was done in 23 states of
India over a period of 1993-2001 to get a comparative data. The study concludes that there is
a noticeable improvement in the allocative efficiency of banks after the enactment of reforms
in 1990s and was noticed more in service sector as compared to industry sector

18
 CHAPTER III
COMPANY PROFILE

19
 HISTORY OF HDFC BANK

HDFC BANK LTD was incorporated in August 1994 in the name of 'HDFC Bank Limited’,
with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled
Commercial Bank in January 1995.

If ever there was a man with a mission it was Hasmukhbhai Parekh, Founder and
Chairman-Emeritus, of HDFC Group. HDFC BANK LTD was amongst the first to set up
a bank in the private sector. The bank was incorporated on 30th August 1994 in the name of
‘HDFC Bank Limited’, with its registered office in Mumbai. It commenced operations as a
Scheduled Commercial Bank on 16th January 1995. The bank has grown consistently and is
now amongst the leading players in the industry .

HDFC is India's premier housing finance company and enjoys an impeccable track record in
India as well as in international markets. Since its inception in 1977, the Corporation has
maintained a consistent and healthy growth in its operations to remain the market leader in
mortgages. Its outstanding loan portfolio covers well over a million dwelling units.

HDFC has developed significant expertise in retail mortgage loans to different market
segments and also has a large corporate client base for its housing related credit facilities. With
its experience in the financial markets, a strong market reputation, large shareholder base and
unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian
environment in a milestone transaction in the Indian banking industry, Times Bank was merged
with HDFC Bank Ltd., effective February 26, 2000.

20
INTRODUCTION OF HDFC

It was a pioneer corporation and still one of the leading brands in housing loan in India. Over
the last three decades HDFC Bank has turned the concept of Housing loan to a strategy, to
convert middle income section group of Indian society into a world class enterprise. HDFC
was aimed to attain this reputation by means of professionalism, integrity and outstanding
service to its customers.

Over the year HDFC bank has expanded its financial services including banking, life & non-
life insurance, asset management, real estate venture capital and recently education loans.

HDFC Bank was started after the principal approval from RBI in August 1994 is the name of
HDFC Bank Ltd. With its registered office in Mumbai which was inaugurated by Mr.
Manmohan Singh, who was the finance minister at that time

HDFC began operation in 1995 with a simple mission “World Class Indian Bank” since then
it had a single-minded focus on product quality, has 84,325 employees and expanded to
Bahrain, Hong-Kong and Dubai.

Today it is India’s largest private sector lender by assts.

It was ranked 69 in 2016 Brands Top 100 most valuable global brands. As on June 30, 2017 it
has opened 4,715 branches, 12,260 ATMs across 2,657 cities and towns.

It has issued 235.7 lacks debit card and 85.4 lacks credit cards in financial year 2017.

21
INTEGRATED FINANCIAL SERVICES

SECURITISATION

HDFC CHUBB GENERAL

INSURANCE CO. LTD.

Future Activities

DISTRIBUTION

22
 VISION STATEMENT OF HDFC BANK

The HDFC Bank is committed to maintain the highest level of ethical standards, professional
integrity and regulatory compliance. HDFC Bank’s business philosophy is based on four core
values such as:-

1. Operational excellence.
2. Customer Focus.
3. Product leadership.
4. People.
The objective of the HDFC Bank is to provide its target market customers a full range of
financial products and banking services, giving the customer a one-step window for all his/her
requirements. The HDFC Bank plus and the investment advisory services programs have been
designed keeping in mind needs of customers who seeks distinct financial solutions,
information and advice on various investment avenues.

MISSION
1. World Class Indian Bank
2. Benchmarking against international standards.
3. To build sound customer franchises across distinct businesses.
4. Best practices in terms of product offerings, technology, service levels, risk
management and audit & compliance

BUSINESS STRATEGY
1) Increasing market share in India’s expanding banking
2) Delivering high quality customer service
3) Maintaining current high standards for asset quality through disciplined credit risk
management
4) Develop innovative products and services that attract targeted customers and
address inefficiencies in the Indian financial sector.

23
 ACCOUNT & DEPOSITS SERVICE

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.

It includes these services: -

Saving accounts.

Current accounts.

Fix deposits.

Demate account.

Safe deposits lockers.

Savings Accounts

These accounts are primarily meant to inculcate a sense of saving for the future, accumulating
funds over a period of time. Whatever person’s occupation, bank have confident that person
will find the perfect banking solution. There some saving accounts like: -

Regular Saving Account:

An easy-to-operate savings account that allows you to issue cheques, draw Demand Drafts
and withdraw cash. Check up on your balances from the comfort of your home or office through
Net Banking, Phone Banking and Mobile Banking. If you need money urgently then you can
take money from the ATM machine. There are 1977 ATM centers across the country.

Saving plus Account:

Introducing the best banking option for you with HDFC Bank Savings plus Account. Now
you can get access to some of the finest banking facilities with HDFC Bank's Savings plus
Account. All you have to do is maintain an Average Quarterly Balance of Rs. 10,000/-.

24
Saving Max Account:

Welcome to a world of convenience. Presenting Savings Max account, loaded with maximum
benefits to make your banking experience a pleasure. By maintaining an average quarterly
balance of just Rs. 25,000/- you get a host of premium services from HDFC Bank absolutely
free.

Senior Citizen Account:

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

No frills Account:

In an effort to make banking simpler and more accessible for customers, bank has introduced
the 'No Frills' Savings Account, which offers customer all the basic banking facilities.
Customer can even avail of services like Net Banking, Mobile banking free of cost. In this
customer can put Zero Initial Pay-in and a Zero Balance account.

Institutional saving accounts:

A specially designed account that offers twin benefits of a savings as well as a current account.
Customer’s funds continue to earn you interest while he enjoys hassle-free banking & a host
of other features. All this and more in a Zero Balance account.

Salary Accounts
In this account customer can get salary from where he/she doing such job and organization or
company at where the customer of the bank in doing job deposit their salary in to the salary
account a person can get salary.

There are various kinds of saving accounts in the HDFC Bank like: -

Pay roll account.

Classic salary account.

Regular salary account.

Premium salary account.

Defense salary account.

25
No frills salary account.

Reimbursement salary account.

Kid’s advantage account:

Start saving for your child today and secure his/her future a sentence tells by the Hdfc bank.
Open a Savings Account and transfer money every month into customer’s Kids Advantage
Account and watch the savings grow as customer’s child grows. The accumulated savings in
the Kids Advantage Account can over the years help in meeting customer child's needs.

Current accounts:

HDFC Bank Current Account gives the power of inter-city banking with a single account and
access to more than cities. From special cheques that get treated at par with local ones in any
city where branch, faster collection of outstation cheques (payable at branch locations), free
account to account funds transfer between HDFC Bank accounts to Free inter-city clearing of
up to 100 lakhs per month, bank’s priority services have become the benchmark for banking
efficiency.

Now, with an HDFC Bank Current Account, experience the freedom of multi-city banking.
Person can have the power of multi-location access to his account from any of our 761 branches
in 327 cities. Not only that, he can do most of his banking transactions from the comfort of his
office or home without stepping out.

There are various kinds of current account in this bank like: -

Plus current account:

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

26
Trade current account:

In today's changing business requirements, you need to transfer funds across cities, and time
is of the essence. HDFC Bank Trade Current Account gives power of inter-city banking with
a single account.

From special cheques that get treated at par with local ones in any city where bank have a
branch, to free account to account funds transfer between HDFC Bank accounts, to free inter-
city clearing of up to 50 lakhs per month, bank’s priority services have become the benchmark
for banking efficiency. Trade Current Account requires maintaining an average quarterly
balance of Rs. 40,000.

Premium current account:

Business needs a partner who can manage finances while concentrate on growing business.
Form this account customer can avail benefits of inter-city banking account that requires an
average quarterly balance of only Rs. 25,000, offers Payable-At-Par cheque book facility &
FREE inter-city clearing transactions across our network up to Rs.25 Lacs per month.

A Current Account with the benefits of accessing account from a large network of branches,
and through direct access channels - the phone, mobile, Internet and through the ATM.

Regular current account:

A Current account is ideal for carrying out day-to-day business transactions. With the HDFC
Bank Regular Current Account, customer can access account anytime, anywhere, pay using
payable at par cheques or deposit cheque at any HDFC bank branch. It also facilitates FREE
NEFT transactions & FREE RTGS collections for faster collections in account. Regular
Current Account requires to maintain an average quarterly balance of only Rs. 10,000.

With a vast network of branches in cities all over the country, and access to a multitude of
ATM's, customer can keep track of all transactions anytime.

Fix deposits service:

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

27
People can invest his/her money into either in security market or gold or mutual fund or into a
fix deposits. People always go to that way where he/she can get more benefits and minimum
risks. So, for this purpose he has a better chance to deposits money in to the fix deposit.

If people believe in long-term investments and wish to earn higher interests on his/her savings,
now is the time to invest money in HDFC bank Fixed Deposit. Get up to 9.75% on HDFC Bank
Fixed Deposit with an additional 0.50% for Senior Citizens. What's more NO PENALTY if
withdraw part of the FD in times of need. Flexibility, Security and High Returns all bundled
into one offering.

Regular fix deposit

As per the rules and regulation of the bank a person can deposit their money in to a fix deposit
in the bank and can get the benefits of these facilities.

Five-year tax saving fix deposit

In 2006, it was announced for the first time that Bank fixed deposits booked by an
Individual/HUF for 5 years & up to Rs. 1,00,000/- will be allowed exemption under Sec 80C
of the Income Tax Act,1961 subject to necessary declarations taken from the Customer.

Super saver facility:

Customer can enjoy a high rate of interest along with the liquidity of a Savings Account by
opting for a Super Saver Facility on his or her savings account. Avail of an overdraft facility
of up to 75% of the value of his or her Fixed Deposit.

Sweep-in facility:

Do you wish to avoid taking overdrafts, and still take advantage of your Fixed Deposits?
Then what you need is a Sweep-In Facility on savings account. Link Fixed Deposit to
Savings or Current Account and use it to fall back on in case of emergencies. A deficit in
Savings or Current Account is taken care of by using up an exact value from Fixed Deposit.
Since deposits are broken down in units of Re 1/-, customer will lose interest only for the
actual amount that has been withdrawn.

28
Demat account service:

Nowadays share market is becoming is the main occupation of the person. So to avoid faulty
processes demat account is really most important for the share market and for the safety of
shares it is most important.

HDFC BANK is one of the leading Depository Participant (DP) in the country with over 8 Lac
demat accounts.

HDFC Bank Demat services offers a secure and convenient way to keep track of securities and
investments, over a period of time, without the hassle of handling physical documents that get
mutilated or lost in transit.

HDFC BANK is Depository participant both with -National Securities Depositories Limited
(NSDL) and Central Depository Services Limited (CDSL).

Safe deposit locker:

A Safe Deposit Locker with HDFC Bank is the solution to person’s fear. Located at select
branches in cities all over the country, bank’s lockers ensure the safe keeping of valuables.

Eligibility:

An individual (not minor), firms, limited company, associations, clubs, trusts, societies, etc.
may hire a locker.

Advantages of safe deposit locker in HDFC bank

Wide Availability.

Lockers available in various sizes. I.e. Small, Medium, Large and Extra Large with varying
rents.

Lockers are rented out for a minimum period of one year. Rent is payable in advance.

No deposits are required to avail a locker. Just open an account and get the locker facility.

There is a nominal annual charge, which depends on the size of the locker and the centre in
which the branch is located.

29
Nomination for Safe Deposit Locker

The Lockers and their contents can be nominated to people near and dear to you.

Nomination facility is available to individual hirer of Safe Deposit Locker.

In the case of a sole hirer of a safe deposit locker, nomination can be made in favour of only
one individual.

Where the safe deposit locker is hired in the name of a minor, the nomination shall be made by
a person lawfully entitled to act on behalf of the minor.

LOAN SERVICES

In today’s competitive world everything happens only with the help of money or through the
money every person need money. But some time a person has not cash on hand at that time he
needs lone either from any friend or from any financial institute. Lone does not mean that only
lower-class person needs it but also upper-class person it is needed.

As per the requirement of every person there are much type of loans are there in the HDFC
bank.

Personal loan
A person has so many dreams but some time due to scarcity of money a dream can’t be
satisfy. So, here one solution for that person this is personal loan. From this he/she can fulfill
their needs or requirement. It can be anything either a dream of vacation or son/daughter’s
admission to college or any wedding, so personal loan can be helpful in this entire
requirement.

As person ordered in the hotel for tea or coffee and it is immediately came fast, same over here
any person want to get a personal loan with the nominal documents he can get the loan.

30
Home loan:

HDFC Bank brings, HDFC home loans to doorstep. With over 30 years of experience, a
dedicated team of experts and a complete package to meet all housing finance needs, HDFC
Home Loans, help people realize dream.

Vehicles loan:

Nowadays the life is being so fast, time value is becoming more important so to reach at the
destination of any business-related occasion or for a boy to reach college or anywhere at the
fix time there are so many requirements of vehicles. But every people have no capacity to
purchase vehicles with cash so for that here in the HDFC bank vehicles loan is available.
There are many types of vehicles loan.

Types of vehicles loan:

Two-wheeler loans.

New car loan.

Used car loan.

Tractor loan (for agree culture business).

Commercial vehicle loan.

So, as per the requirement of the person there are these types of loans are available this are at
the chip rate and hassel free from more documentation and other procedure. And commercial
businessman can get the benefits of the commercial vehicles loans. Thus as per the need of
different people there are vehicle loans available. And also terms and condition are different as
per the requirement.

Express loan plus:

Bank offer Express Loans Plus at person Doorstep to help fulfil all his/her needs. The procedure
is simple, documentation is minimal and approval is quick. It is helpful to person in repairing
of house, School admission or also in the family holiday.

31
Gold loan:

With HDFC Bank's Gold Loan, person can get an instant loan against gold jewellery and
ornaments. The procedure is simple, documentation is minimal and approval is quick. A
person can get 70% loan on the value of the gold jewellery and ornaments. There is also
availability of the overdraft on the gold jewellery. With this a customer can get free
additional services like free personalized cheque book, free international debit card, and free
net banking phone banking services.

Educational loan:

Nowadays important of education becoming very high. ASs it important becoming high it is
becoming costly. So, in the higher education some time people cannot effort a high price at a
same time. So, there is education loan is also available for the student.

A person can get loan up to 10 lakhs to study in India and 20 lakhs if he wants to study in
abroad. Loan available up to tenure of 7 years including moratorium period.

Loans disbursed directly to the educational institution. It is released as per fee schedules of
institutes. Exclusive Telegraphic Transfer facility available for courses abroad. Loans available
for short duration/ job-oriented courses also.

Loan against security

With HDFC Bank's Loan against Securities, person can get an overdraft against securities
like Equity Shares, Mutual Fund Units (Equity, Debt, FMPs), Gold Exchange Traded Fund
(ETF), NABARD’s Bhavishya Nirman Bonds, Policies issued by LIC & Select Private
Insurance Companies, NSC, KVP, UTI Bonds (ARS & US64 Bonds) and Gold Deposit
Certificates, while still retaining ownership. And the best part is that he can continue to enjoy
all his shareholder benefits such as rights, dividends and bonuses Loan available to NRIs
against Shares, Mutual Funds (equity, Debt, FMPs), US64 Bonds, Insurance Policies, NSC,
and KVP.

32
Loan against property:

HDFC Bank brings Loan against Property (LAP). Person can now take a loan against
residential or commercial property, to expand his business, plan a dream wedding, and fund
his child's education and much more. He can depend on bank to meet all his business
requirements even to purchase a new shop or office for business. Loan to purchase
Commercial Property (LCP) is a specially designed product to help person expand his
business without reducing the capital from his business.

These are loans services providing by HDFC bank which are very hassle free and really
benefits for most of customer and most of customer are satisfied by the loan services
providing by the bank.

Card Services:

In today’s competitive and fast time card services providing by the banks are really very
important to every person and every business needs or to take meal in to the hotel or to purchase
jewellery from the jewellery shops cards are playing good role in the banking sectors. Bank
ranges of Cards help to meet financial objectives. So whether persons are looking to add to his
buying power, conducting cashless shopping, or budgeting his expenditure, he will find a card
that suits him.

Credit cards:

A person wants many things like, a trip to Bali, a diamond ring for wife's dreams. Some dreams
can't wait. If there's something person has always wanted. If a person wanted fulfil his wants
he can get benefits from the HDFC bank’s credit cards facilities different types of credit

Classic cards

Silver Credit Card.

Value plus Credit Card.

Health plus Credit Card.

Premium Cards

Gold Credit Card

33
Titanium Credit Card

Woman's Gold Card

Platinum Plus Credit Card

Visa Signature Credit Card

World MasterCard

Commercial Cards

Corporate Credit Card

Debit card:
HDFC Bank Debit Cards give person complete and instant access to the money in his
accounts without the risk or hassle of carrying cash.

Types of debit card: -

Classic card

Easy shop international Debit card.

Premium card

Easy shop gold Debit card.

Specialized card

Easy Shop International Business Debit Card.

Easy Shop Woman's Advantage Debit Card.

Easy Shop NRO Debit Card.

Kisan Card.

34
Prepaid card

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

Forex Plus Cards

Prepaid Travel Card.

Gift plus Cards

Prepaid Gift Card.

Food plus Cards

Prepaid Food Plus card.

Money plus Card

The Corporate Payment card

INVESMENT AND INSURANCE SERVICE

Nowadays a ward investment is becoming more popular. Person invest their money in to
various schemes or in to the gold or share market etc. but some time he is in to the difficult
situation, for that bank help person invest wisely through financial and investment services.

Types of investment: -

Mutual Funds

Invest through the Mutual Fund route to meet varied investment objectives.

Insurance

35
Traditional Plans Linked Plans

HDFC children's PLAN. HDFC Unit Linked Young Star Plus II.

HDFC Money Back Plan. HDFC Unit Linked Young Star Suvidha.

HDFC Savings Assurance Plan. HDFC Unit Linked Young Star Suvidha Plus

HDFC Assurance Plan. HDFC Unit Linked Pension.

HDFC Term Assurance Plan. HDFC Unit Linked Pension Plus.

HDFC Loan Cover Term Assurance Plan. HDFC Unit Linked Endowment Plus II.

HDFC Endowment Assurance Plan. HDFC Unit Linked Endowment Suvidha.

HDFC Single Premium Whole of Life Insurance HDFC Unit Linked Endowment Suvidha

HDFC Unit Linked Enhanced Life Protection

36
HDFC BANK RELATION WITH CUSTOMERS:

Building resilience for tomorrow's success:

As the world undergoes rapid changes and the threat landscape constantly evolves, HDFC
Bank takes proactive measures to ensure the reliability and seamless continuity of
operations. HDFC prioritise the highest standards of Information & Cyber Security
Practices and Data Privacy Measures, ensuring the protection of sensitive data and
maintaining the trust of its customers. Additionally, HDFC’s ISO 22301:2019 certified
Business Continuity Program ensures the reliability and seamless continuity of our
operations. HDFC business continuity program is meticulously designed to align with
regulatory guidelines and it undergoes thorough reviews and audits.

Embedding customer focus in everything:

The Bank has always endeavoured to improve customer experience and has adopted a
holistic approach for the same across multiple channels ranging from Branch Banking,
Phone Banking, Net Banking, Mobile Banking, WhatsAppBanking, EVA Chabot and the
Bank’s social care handles. The Bank has also improvised on the relationship-based
banking programmes by introducing a Virtual Relationship Manager (VRM) programme
to cater to various financial needs in a personalised manner. To improve customer
service, the Bank has implemented a three-step strategy – Define, Measure, and Improve.

To continuously enhance the quality of service, the Service Quality team conducts
regular reviews across various products, processes, and channels. The Bank has also
created a unique Service Quality Index (SQI) for its primary customer-facing channels,
which measures their performance on critical customer service parameters and helps
improve the same.

Building a customer centric culture using Net Promoter System (NPS) -

‘Infinite Smiles’.

The Bank, believe that delivering an outstanding customer experience is a strong

differentiator for a great product and is key to a sustained competitive advantage. The
primary aim of the Infinite Smiles programme is to establish employee behaviour and
practices which leads to customer centric actions and continuous improvements. Last
year, bank-initiated measurement on key journeys, identified action areas to improve
customer experience and implemented several key initiatives. This has led to a steady
improvement on NPS over the year. This year, we built the commitment to customers by
scaling the coverage of our Infinite Smiles Responsible Business Statutory Reports and
Financial Statements programme – we introduced new journeys, new episodes and new
products ensuring a much wider coverage.

37
 Customer focus has seen increased focus - regular cadence with key stakeholders and
rigorous follow-up on actions have become the cornerstones of Infinite Smiles. The
programme now encompasses critical episodes – On-Boarding journeys, customer
instructions, and ATM transactions. Bank now cover 140+ episodes and have contacted
around 100 million customers in FY23 for their feedback. The ‘Infinite Smiles’ program
rests on three meticulously designed pillars – ‘Listen’; ‘Learn’; and ‘Act’ which enables
the bank to embed customer feedback led transformation as a discipline into systems,
challenge what is considered as the standard, and offer a customer experience that places
us amongst the best service brands.

Innovation at HDFC Bank: Leveraging cutting edge technology to build

competencies:

Digital Rupee Digital Rupee (CBDC-R) is a legal tender issued by RBI in a digital
form. It is an alternative to customers transacting in physical cash by enabling the same
digitally, with anonymity and record keeping of transactions. Currently we have 56K
Bank customers (28% of market share) and 7.5K (42% of market share) merchants live
on CBDC across 15+ cities.

Offline Pay Offline Pay is a concept proposed by HDFC Bank in RBI Regulatory
Sandbox which allows customers and merchants to transact digitally without the need of a
Telco or data network. HDFC Bank successfully ran the pilot for 16 weeks in 19 cities
across Tiers 1 to 6.

Generative AI In our pursuit of innovation, HDFC Bank has fully embraced the potential
of generative AI, leveraging its capabilities to enhance operations and deliver ground-
breaking solutions. The following are the key highlights in this field:
• Internal BETA FAQ Bot: We have successfully launched an internal BETA FAQ Bot
powered by ChatGPT, harnessing the power of generative AI to provide efficient and
accurate responses to customer queries.
• CAMs Covenant Extraction POC: Our Proof of Concept (POC) for CAMs covenant
extraction using GPT API has been completed successfully. This advancement
demonstrates the effective application of generative AI in extracting critical information
from complex financial documents.

How HDFC bank is different from other banks:

Tech for Tech

Introduction to HDFC Bank We have continued our growth towards building a Tech
focussed thought process within the Bank and Tech for Tech holds the key as it allows the
Bank to leverage Tech in solving Tech challenges. This will be the differentiating factor
separating us from rest of the banks when it comes to competing with Fitness and
Bigtechs by enabling rapid technology adoption. Few processes for such technology
enablement implemented in the Bank are as follows

38
Service Now: Our cloud-based IT service modernisation platform has completely
transformed employee ticket resolution experience providing enhanced IT operational
efficiency and resilient IT compliance posture.

O365: Full suite of Office 365 apps made available allowing employees to work from
anywhere and collaborate seamlessly for boosted efficiencies and productivity.

Low code/no code development: The Bank has invested in various low code/no
code platforms to enable faster developments for significantly reduced time-to-market
and improved quality. For instance, PowerApps is being leveraged to develop seamless
service journeys for our customers digitising key processes thereby improving the
customer experience.

Safeguarding Data: Our Strategy the Bank is deeply committed to ensuring robust
cyber security as part of its technology transformation journey. Significant strides have
been made to strengthen the Bank's infrastructure and applications. Key initiatives in this
regard include:

Establishing a next-generation Security Operations Centre (SOC) equipped with

advanced predictive security technologies and incident management capabilities. The
Securonix platform on AWS has been provisioned, with over 10,000 logging sources and
devices configured for monitoring.

Implementing Security Orchestration, Automation and Response (SOAR) to reduce

incident response time by connecting security solutions and automating the incident
lifecycle.

Enabling micro-segmentation in the data centre network to enhance visibility across

network flows and improve preparedness and management against ransom ware related
events and incidents.

Conducting 24/7 defacement monitoring and vulnerability management of the Bank's

internet properties to minimise the surface area for cyber security attacks.

Adopting a zero-trust architecture approach to ensure protection against cyber-attacks

Overall, the Bank's cyber security measures are focused on ensuring the highest level of
protection against cyber threats, with proactive monitoring and automated incident
response capabilities, enhanced network visibility, and a zero-trust approach to security.

39
Upcoming Initiatives Following are a few of HDFC initiatives in the
pipeline:

Smart Wealth: WealthApp is a portfolio management solution that uses advanced

analytics and is mobile-first.

All New Net Banking: The Bank is revamping its retail Net Banking platform to
improve the customer experience through unified journeys.

Integrated Prepaid Cards: Prepaid cards have been revamped with an integrated
platform for multiple issuances.

BizXpress: A digital portal platform that provides end-to-end banking and value-added
services to MSME customers.

Digital Cards: The Bank is leveraging PayZapp 2.0 to offer digital cards.

Digi-Passbook: Bank’s own PFM solution built using Account Aggregator data.

Technology-driven approach:
HDFC was one of the first banks in India to embrace technology and use it to its
advantage. The bank invested heavily in technology, which allowed it to offer its
customers several services, such as Internet banking, mobile banking, and online account
opening. HDFC's technology-driven approach helped it provide seamless and efficient
services to its customers.

Customer-centric approach:
HDFC's customer-centric approach was another factor that helped it stand out in the
market. The bank placed the customer at the centre of everything it did, and its entire
business model revolved around meeting the needs and expectations of its customers.
HDFC's customer-centric approach helped it build a loyal customer base and attract new
customers.

Innovative product offerings:

HDFC was known for its innovative product offerings, such as its home loan product. The
bank offered customers the option to take out a home loan at a fixed interest rate for up to
20 years. This was a game-changer in the Indian banking sector, as it provided customers
with a stable and predictable loan repayment plan. HDFC's innovative product offerings
helped it gain a significant market share and stand out from the competition.

40
Corporate Banking Exchange :( CBX) CBX is our unified corporate banking
portal specifically designed to cater to the Net Banking needs of corporates. It enables
transactions and processing via both mobile and the internet portal. It offers a superior
experience with modern features such as customised narration, enhanced authorisation
level, and a contextual help dashboard.
• 99% of our customers have been migrated to CBX
• Ability to provide historical statements of up to 1 year for up to 2 Lakh record

Smart Hub Vyapar (ONLINE PAYMENT):

Smart hub Vyapar is a comprehensive payments and banking solution aimed at fulfilling
the everyday business needs of merchants. The app allows instant, digital and paperless
Merchant on boarding for HDFC Bank customers, accepts interoperable payments across
multiple payment modes, and enables remote payments. Merchants can also avail banking
services such as opening fixed deposits and quick access to pre-approved loans and credit
cards. Additionally, the app has a marketing tool that enables merchants to broadcast their
offers via social media to existing and potential customers.

41
 CHAPTER IV

DATA ANALYSIS
AND
INTERPRETATION

42
BALANCE SHEET:

Balance sheet is a summary of the financial balances of an individual or organization. It is

one of the three core financial statements (income statement and cash flow statement being
the other two) used for evaluating the performance of a business. It reports on an
organization's assets (what is owned) and liabilities (what is owed).

BALANCE SHEET SIZE

3000000
2466081
2500000
2068535
2000000 1746871

1500000

1000000

500000

0
2021 2022 2023
Series1 1746871 2068535 2466081

BALANCE SHHET SIZE

Financial Year Amount(Crores)
2021 1746871
2022 2068535
2023 2466081

INTERPRETATION:
Balance sheet of HDFC depicts its significant increase in financial position from the year
2021 to 2023. In the year 2021 it was 1746871 and later it increased to 2068535 and has
reached 2466081in 2023. Initially it could be said that the increasing level in its balances of
assets and reduction in liabilities is up to mark and this indicates that the bank is growing and
enhancing its strengths of its products. The bank fame and its brand value is decided by the
way of its increasing balance sheet values year by year. HDFC has achieved its success and is
leading in private banking sector.

43
Deposits:
A deposit is money kept in a bank account, especially to earn interest. It can also be money
used as security for products or services. There different types of deposits like Savings Bank
Account, Current Deposit Account, Fixed Deposit Account. Recurring Deposit Account.

DEPOSITS
2000000 1883395
1800000
1559217
1600000

1400000 1335060

1200000

1000000

800000

600000

400000

200000

0
2021 2022 2023
Amount(Crores) 1335060 1559217 1883395

DEPOSITS
Financial Year Amount(Crores)
2021 1335060
2022 1559217
2023 1883395

INTERPRETATION:
Deposits play a crucial role in the development of the bank. As more people feel benefitted
with the interest rates of the bank, the deposits are high i.e. when compared with 2021 to 2023
there is a significant increase thus considering it has a big asset to the bank. In the year 2021
the deposits where 1335060 crores where it increased to 1559217 crores and finally reached
1883395 crores, it could be stated that deposits are increased 3times more from 2021 to 2023.
The deposits increased, this indirectly mean that the bank is growing and is trusted by people
and this stats motivate people to become an account holder, thus increasing banks credibility.

44
PROFIT AFTER TAX:

Profit after Tax refers to the amount that remains after a bank or a company has paid off
all of its operating and non-operating expenses, other liabilities and taxes. This profit is
what is distributed by the entity to its shareholders as dividends or is kept as retained
earnings in reserves.

PROFIT AFTER TAX

50000
44109
45000

40000 36961
35000
31117
30000

25000

20000

15000

10000

5000

0
2021 2022 2023

PROFIT AFTER TAX

Financial Year Amount(Crores)
2021 31117
2022 36961
2023 44109

INTERPRETATION:

HDFC Bank is one of the largest private sector banks in India and is known for its robust
financial performance. Profit after tax is a key performance metric for HDFC Bank,
reflecting its financial strength, shareholder value creation, growth prospects, and
dividend policy. It plays a central role in guiding strategic decisions and assessing the
bank's overall performance in the market. Thus from the year 2021 to 2023 the PAT is
increasing and this states that the bank is in growth stage. In 2021 it was 31117 later on it
increased to 36961 in 2022 and has reached 44109 by 2023. This increase is good sign for
all the shareholders as they closely monitor PAT as it directly influences their returns on
investment.

45
ADVANCES:

An advance is money that a bank or other financial institution gives to you without
requiring you to repay it immediately. Advances are also known as cash credit, bill
purchase, or overdraft. These are similar to the loans but are given for a very short
duration, such as 1 month to 3 months. In some cases, it can be up to 1 year also.

ADVANCES
1800000
1600586
1600000
1368821
1400000

1200000 1132837

1000000

800000

600000

400000

200000

0
2021 2022 2023

ADVANCES
Financial Year Amount(Crores)
2021 1132837
2022 1368821
2023 1600586

INTERPRETATION:

Primary roles of advances for HDFC Bank is revenue generation. The interest earned on
loans and advances forms a significant portion of the bank's total income. HDFC Bank
earns interest income, which contributes to its overall profitability. Bank plays a crucial
role in supporting economic growth by providing financing to individuals, businesses,
and industries, and also to build and strengthen relationships with its customers. The bank
enhances customer satisfaction and loyalty. Bank's ability to effectively manage its loan
portfolio while meeting the financing needs of its customers is fundamental to its success
and sustained growth. Thus in 2021 the advances ranged from 1132837 and increased to
1368821 and reached maximum to 1600586 this increase in advances provided the bank
with profits which are earned in the form of interests and lead to growth of the bank.

46
 DIVINDEND PER SHARE:

Dividend per share (DPS) is a financial ratio that measures how much money a company
or a bank pays to its shareholders for each share they own. Dividends can be paid out in
cash, or they can come in the form of additional shares.

DIVIDEND PER SHARE

20 19

18
15.5
16

14

12

10

8 6.5
6

0
2021 2022 2023

DIVIDEND PER SHARE

Financial Year Amount
2021 6.5
2022 15.5
2023 19

INTERPRETATION:
Dividend per share can serve as a signal of HDFC Bank's financial health and profitability.
When a company or bank consistently pays dividends and maintains or increases DPS, it
demonstrates financial stability, strong cash flows, and confidence in future earnings
prospects. HDFC Bank's dividend policy, including the determination of DPS, reflects its
commitment to sound corporate governance practices and transparency. In 2021 the DPS is
6.5 and later on it increased to 15.5 and is now leading with 19 and considered high when
compared to other banks. By effectively managing its dividend policy and maintaining an
appropriate DPS, HDFC Bank aims to create value for its shareholders while ensuring
sustainable growth and financial stability.

47
RETURN ON EQUITY:
Return on equity (ROE) measures how efficient a corporation is at generating profit from
money that investors have put into the business.

RETURN ON EQUITY
17.6

17.4
17.4

17.2

17
16.9

16.8

16.6
16.6

16.4

16.2
2021 2022 2023
Series1 16.6 16.9 17.4

RETURN ON EQUITY
Financial Year Percentage
2021 16.6
2022 16.9
2023 17.4

INTERPRETATION:
HDFC Bank is utilizing its shareholders' equity to generate profits. A higher ROE suggests
that the bank is effectively using investors' funds to generate earnings. Thus in 2021 the
percentage of ROE is 16.6 and gradually it increased to 16.9 and reached to 17.4. This
indicates that the bank is effectively using shareholders equity. ROE reflects the effectiveness
of HDFC Bank's management in maximizing shareholder value. It is an essential
performance metric for evaluating the bank's leadership and strategic decisions. ROE allows
investors to compare HDFC Bank's profitability with its peers and industry standards. It
provides insights into the bank's competitive position within the banking sector.

48
RETURN ON ASSETS:
Return on assets (ROA) is a financial metric that measures how well a company's
management uses its assets to generate profits. The higher the ROA number, the more
efficient a company's management is at generating profits. A company can arrive at a high
ROA either by boosting its profit margin or, by using its assets to increase sales.

RETURN ON ASSETS
2.08 2.07

2.06

2.04 2.03

2.02

1.98 1.97

1.96

1.94

1.92
2021 2022 2023

RETURN ON ASSETS
Financial Year Amount(Crores)
2021 1.97
2022 2.03
2023 2.07

INTERPRETATION:
HDFC Bank uses ROA to benchmark its performance against industry peers and competitors.
By comparing its ROA with that of other banks, HDFC Bank can assess its competitive
position within the banking sector and identify areas for improvement. Thus from the above
stats in the year 2021 it was 1.97 crores, the performance improved and ROA reached 2.03 in
2022 and initially began to increase again in 2023 where it reached 2.07. ROA is closely
monitored by investors as it provides insights into HDFC Bank's profitability and financial
health. HDFC Bank incorporates ROA into its strategic decision-making processes. Aiming
to improve or maintain a high ROA, the bank may implement initiatives to enhance asset
quality, streamline operations, optimize capital allocation, and expand revenue streams.
Overall, ROA is an essential financial metric for HDFC Bank, guiding performance
assessment, investor perception, risk management, strategic planning, and regulatory
compliance.

49
Customer’s Increase analysis:

Customers increase in 2021.

HDFC Bank had over 68 million customers in 2021, which was an increase from the
previous financial year. In 2021, HDFC Bank also saw a 30% increase in engagement rate.

Customers increase in 2022.

HDFC Bank had 40 million active debit cards at the end of the 2022 financial year, which
was a significant increase from the previous year. As of March 31, 2022, the bank had nearly
71 million customers in the country.

Customers increase in 2023.

HDFC Bank, India's largest private sector bank, provided banking services to over 80 million
customers through its 7,821 branches in 2023.
Customers Increase Analysis

Year Customers
2021 68000000
2022 71000000
2023 80000000

INCREASE IN CUSTOMERS
90000000
80000000
80000000
71000000
68000000
70000000
CUSTOMERS

60000000

50000000

40000000

30000000

20000000

10000000
2021 2022 2023
0
1 2 3
Series1 2021 2022 2023
Series2 68000000 71000000 80000000

50
ANNUAL REVENUE ANALSIS:

HDFC Bank annual revenue for 2021 was $20.904B, an 11.75% increase from 2020.

HDFC Bank annual revenue for 2022 was $21.138B, a 1.12% increase from 2021.

HDFC Bank revenue for the quarter ending December 31, 2023 was $13.802B, a 109.02%
increase year-over-year.

HDFC Bank revenue for the twelve months ending December 31, 2023 was $39.866B, a
156.88% increase year-over-year.

Financial year Annual revenue

2021 20900. M
2022 21138. M
2023 24102. M

INCREASE IN PROFIT
25000. M

24102. M
24000. M
ANNUAL REVENUE

23000. M

22000. M

21138. M
20900. M
21000. M

20000. M

19000. M
2021 FINANCIAL YEAR 2022 2023

51
 CHAPTER V
FINDINGS
SUGGESTIONS
CONCLUSIONS

52
5.1 Findings:
Initially came to know about the history of banking, how it was developed, how various
countries played a major role in developing the banking sector.
Found how Indian banking system works, and also about schedule banks and non-schedule
banks.
Major findings include banking structure in India which consists of public sector and private
sector banks.
HDFC Bank is one of the largest private sector banks in India and offers a wide range of
banking and financial services to its customers
HDFC Bank has consistently shown strong financial performance with steady growth in
revenue, profits, and customer base.
HDFC Bank is known for its adoption of technology and innovation in banking services. It
has invested heavily in digital banking solutions, mobile banking apps, and online platforms
to enhance customer experience.
HDFC Bank has a reputation for providing excellent customer service. It offers various
channels for customer support and has a widespread network of branches and ATMs across
India.
HDFC Bank offers a wide range of products and services including retail banking, corporate
banking, loans, wealth management, insurance, and investment banking.
Thus the findings conclude that the bank has grown its trust towards its customers, this lead
to success and now it’s shown in the form of increased customer base and increase revenue
and also increase analytical data like Balance sheet, Deposits, Advances and so on.

5.2 SUGGESTIONS:
HDFC Bank could explore opportunities for expansion and diversification. Expanding its
presence in rural and semi-urban areas, launching niche financial products to cater to specific
customer segments, or even expanding internationally in strategic markets.
Investing in employee training and development can improve service quality and employee
satisfaction. HDFC Bank could focus on providing comprehensive training programs,
fostering a culture of continuous learning, and offering career development opportunities for
its staff.
HDFC Bank could explore strategic partnerships for co-branded products, joint ventures for
new business lines, or investments in promising start-ups.

53
5.3 Conclusion:
Thus, found information about some public banks like state bank of India, Canara Bank,
Union Bank, Punjab National Bank, and also about some private sector banks like Axis Bank,
ICICI Bank, Karur Vysya Bank and Kotak Mahindra. When compared, the Information about
these banks, helped to know why HDFC is leading in Private Banking Sector. Thus
Concluded HDFC has implemented many schemes, New Technology, Easy Banking Systems
and most important aspect is accurate Customer Service to its Customers. This led to growth
the of the bank.
HDFC Bank has historically demonstrated robust financial performance, with consistent
growth in revenue, profits, and market share. Its strong balance sheet, efficient operations,
and prudent risk management practices have contributed to its resilience in various market
conditions.
HDFC Bank is one of the leading banks in India, known for its extensive branch network,
diverse product offerings, and superior customer service.
HDFC Bank is well-positioned to capitalize on opportunities arising from India's economic
growth, increasing digital adoption, and evolving customer preferences. Its focus on
innovation, customer-centricity, and risk management will be crucial in sustaining its
competitive advantage and driving future growth.
Therefore, these are the aspects helped HDFC bank to grow and prosper.

54
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3. Mohan, T. R., & Ray, S. C. (2004). Comparing performance of public and private sector
banks: a revenue maximisation efficiency approach. Economic and Political weekly, 1271-
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4. Ghosh, S., & Das, A. (2005). Depositor discipline in the banking sector in India: An
empirical investigation. Journal of Quantitative Economics, 3, 50-73.

5. Hugar, S. S., & Vaz, N. H. (2008). An evaluation of customer orientation of Indian public
sector banks. Indian Journal of Marketing, 38(6).

6. Rao, N., & Tiwari, S. (2009). Efficiency indicators of commercial banks in liberalised
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7. Ibrahim, M. S. (2011). Operational performance of Indian scheduled commercial banks-an

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WEBSITES:

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https://www.macrotrends.net/stocks/charts/HDB/hdfc-bank/revenue

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