CHAPTER 1

INTRODUCTION OF HDFC BANK

1.1 INTRODUCTION

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995.

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.

HDFC Bank began operations in 1995 with a simple mission : to be a “ World Class Indian Bank.” We realized that only a single minded focus on product quality and service excellence would help us get there. Today, we are proud to say that we are well on our way towards that goal.

1.2 OBJECTIVE OF STUDY

To study Organization Structure of HDFC Bank

To study Product and Services of HDFC Bank

To study CSR Activities and Financial Inclusion of HDFC Bank

1.3 METHOD OF RESEARCH

1.4 CHAPTER SCHAME

CHAPTER 2

HISTORY AND ORGANISACTION OF HDFC BANK

2.1 HISTORY

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.

2.2 MISSION , VISION AND BUSINESS STRATEGY

MISSION

I. World Class Indian Bank

II. Benchmarking against international standards.

III. To build sound customer franchises across distinct businesses

IV. Best practices in terms of product offerings, technology, service levels, risk management

and audit & compliance.

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.

BUSINESS STRATEGY

I. Increasing market share in India’s expanding banking

II. Delivering high quality customer service

III. Maintaining current high standards for asset quality through disciplined credit risk

management.

Develop innovative products and services that attract targeted customers and address

inefficiencies in the Indian financial sector.

2.3 ORGANISATION STRACTURE

The organization structure of the company HDFC is such that it comprises of the

departments and the employees in the hierarchical order so that they are able to perform their

functions and duties smoothly and effectively doing their job in a manner in which it should be

done. The organization is headed by the administrative department which coordinates and 

controls the executive department. The executive department is a link from the top and the

bottom comprising of the lower level employees such that they work together to fulfill the

common objective of getting business from the persons who get in touch with them and see to it

that they are provided with the best of the bank which constitute giving financial advise to

providing Account to the customers. The lower level employees and the corporate financial

consultants work together to see to it that the database for providing financial bank to sufficient

number of people is made .They work together to see to it that this database is followed and

worked upon such that more and more number of people get them selves avail the financial bank

of the organization. Team leaders who form the part of the administrative department of the

Organization make sure that the clients that turn up for the financial bank are dealt with the most

efficiently and effectively .

2.4 CAPITAL STRUCTURE

As on March 31, 2014 the authorized share capital of the Bank is Rs. 550 crore. The paid-up

capital as on the said date is Rs 479,81,00,870/- ( 2399050435 ) equity shares of Rs. 2/- each).

The HDFC Group holds 22.64 % of the Bank's equity and about 16.97 % of the equity is held by

the ADS / GDR Depositories (in respect of the bank's American Depository Shares (ADS) and

Global Depository Receipts (GDR) Issues). 34.11 % of the equity is held by Foreign Institutional

Investors (FIIs) and the Bank has 4,22,314 shareholders. 

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

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

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

Receipts (GDRs) are listed on Luxembourg Stock Exchange under ISIN No US40415F2002.

2.5 DISTRIBUTION NETWORK

HDFC Bank is headquartered in Mumbai. As of September 30, 2014, the Bank’s

distribution network was at 3,600 branches in 2,272 cities. All branches are linked on an online

real-time basis. Customers across India are also serviced through multiple delivery channels such

as Phone Banking, Net Banking, Mobile Banking and SMS based banking. The Bank’s

expansion plans take into account the need to have a presence in all major industrial and

commercial centres, where its corporate customers are located, as well as the need to build a

strong retail customer base for both deposits and loan products. Being a clearing / settlement

bank to various leading stock exchanges, the Bank has branches in centres where the NSE / BSE

have a strong and active member base.

The Bank also has a network of 11,515 ATMs across India. HDFC Bank’s ATM network

can be accessed by all domestic and international Visa / MasterCard, Visa Electron / Maestro,

Plus / Cirrus, Diners-Discover and American Express Credit / Charge cardholders.

2.6 FUNCTIONAL DEPARTMENTS OF THE ORGANIZATION

The functional departments of the organization consists of the HR department

the administrative department and the executive department. The HR department of the

organization consists of the people who employ the Persons who they think would be able to do

justice with the job handled. The administrative department of the organization consists of the

director and the manager of the organization. They preside the organization and control all the

operations of the organization such that the organization could run in a smooth and effective

manner. The executive department of the organization consists of the various employees Who

execute the job undertaken by them. The employees consists of the team leaders, the Corporate

financial consultants, the telecallers , various staffs and junior staffs who are the main structural

framework of the organization. The organization thus runs with the effective coordination of the

HR department, the administrative department and the executive department such that the

supervisors of the organization preside over the subordinate employees to give them directions

about fulfilling their works most efficiently and effectively. 

H R Department:

HDFC Human Resources department plans and direct for the employeepopulation as well as

they are having the following functions as:-

Hiring

Promotions Reassignments

Position classification and grading

Salary determination

Performance appraisal review and processing

Personnel data entry and records maintenance.

Finance Department:

The Finance Manager is responsible for all aspects of the accounting and financial administration of the HDFC, the supervision of the implementation of the HDFC financial policies, directives and procedures and the initiation of the f inancial plans within the  guidel ines  of  HDFC The department contains several distinct sections, each of which is responsible for a proportion of the activities taking place within the finance department.

Marketing Consultancy Department:

 The Marketing Consultancy Department plays and important role within the Fund as it studies and analyzes marketing information in order to build solid base for management decisions . The division also assists projects sponsors informulating  solid  marketing  strategies to improve their industries and strengthen their position in the local and international markets.

Research Department:

The Research Department is having the capacity to act through four composing units i.e., the market research unit, economic studies unit, and statistical studies unit. It is the mission of the division to provide support bank for information and consultancy to the senior management and division in the areas of economic, statistical and marketing information and consultancy through data analysis, processing of economic and statistical data, market research studies and publishing related periodical reports.

CHAPTER 3

PRODUCT AND SERVICES OF HDFC BANK

3.1 PRODUCTS AND SERVICES

A. ACCOUNTS AND DEPOSITS SERVICESB. LOAN SERVICES C. CARD SERVICES D. INVESTMENT AND INSURANCE SERVICESE. FOREZ AND TRADE SERVICESD. PAYMET SERVICESE. NRI BANKING

A. ACCOUNT AND DEPOSITS SERVICES

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: -

 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/-.

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.

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.

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.

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

1. Wide Availability. 2. Lockers available in various sizes. i.e. Small, Medium, Large and Extra Large

with varying rents. 3. Lockers are rented out for a minimum period of one year. Rent is payable in

advance. 4. No deposits are required to avail a locker. Just open an account and get the locker

facility. 5. There is a nominal annual charge, which depends on the size of the locker and the

centre in which the branch is located. 6. Nomination for Safe Deposit Locker7. The Lockers and their contents can be nominated to people near and dear to you. 8. Nomination facility is available to individual hirer of Safe Deposit Locker. 9. In the case of a sole hirer of a safe deposit locker, nomination can be made in

favor of only one individual. 10. 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.

Terms & Conditions

1. For obtaining a Locker at HDFC Bank you must be an account holder with Bank. 2. Lockers can be allotted individually as well as jointly. 3. The Locker holder is permitted to add or delete names from the list of persons

who can operate the Locker and can have access to it. 4. Loss of Key is to be immediately informed to the concerned Branch.

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 fulfill 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. 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.

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. 

Reimbursement Current Account

No more paperwork, no more receipts to keep track of - a hassle-free account that allows deposit the reimbursements receive from company/organization on a monthly basis.

To open this account a person has to follow these processes:

Procure an Account Opening Document (AOD) from HDFC Bank. (If person has just joined, first request to company to open up a Salary Account for particular person).

Mention Salary Account number and Debit Card number on the AOD so that Debit card can be linked to both, Salary Account as well as new Reimbursement Account.

B. LOAN SERVICES

In today’s competitive world every thing 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 dose not mean that only

lower class person needs it but also upper class person it is needed.

As per the requirement of the 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 any thing 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.

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 any where at the

fix time there are so many requirement 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 fulfill 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. 

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 can not 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. 

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.

C. 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 fulfill his wants he can get benefits from the HDFC bank’s credit cards facilities.  

  Different types of credit cards

Classic cards Silver Credit Card. Value plus Credit Card. Health Plus Credit Card. Premium Cards: Gold Credit Card 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.

 Prepaid card

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

ForexPlus Cards  Prepaid Travel Card. Gift Plus Cards Prepaid Gift Card. Food Plus Cards Prepaid Food Plus card. Money Plus Card

The Corporate Payment card

D. 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. 

 

Traditional Plans Unit 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 Plu

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

Bonds

A secure investment avenue giving stable returns with tax benefits.

Financial Planning Start Now Plan investments to meet financial goals Knowledge Centre Profit from research and make informed investment decisions. Equities & Derivatives Leverage bank’s vast information repository and transact online.

Mudra Gold Bar Buy 24 Karat gold bars made in Switzerland and certified by Assay. 

E. FOREX AND TRADE SERVICE

Nowadays businesses becoming worldwide e.g. India to America but main problems are about monitory transaction because at every country the currency become changed so for that banks are playing a very important for the businesses.

If people need to deal in foreign currency and keep tabs on exchange rates every now and then, transfer monies to India, make payments etc., HDFC Bank has a range of products and services that people can choose from to transact smoothly, efficiently and in a timely manner.

Bank offering following Foreign Exchange Products and Services.

The following are different methods of transacting in Foreign Exchange and remitting money.

Travelers Cheques. Foreign Currency Cash. Foreign Currency Drafts. Cheque Deposits. Remittances. Cash to Master. Trade Services. Forex Services Branch Locator.

Important guidelines and schedules  All Foreign Exchange transactions are conducted by strictly adhering to RBI guidelines. Depending on the nature of transaction or point of travel, people will need to understand his Foreign Exchange limits.

RBI Guidelines. Forex Limits. Non HDFC Bank Account Holders. FAQs

F. PAYMENT SERVICE

Nowadays life of a person become very stressful and he/she becoming busy with their own business, but they have to payment for something so for that reason bank’s payment services become started. With HDFC Bank's payment services, person can bid goodbye to queues and paper work. Bank’s range of payment options make it easy for pay for a variety of utilities and services.

Verified By Visa

  Do you want to be worry free for your online purchases. Now you can shop securely online with your existing Visa Debit/Credit card. 

Net Safe

Now shop online without revealing your HDFC Bank Credit Card number. What more, you can now use your HDFC Bank Debit Card also for online purchases. 

Merchant Services

Accept all Visa, MasterCard, credit and Debit cards at your outlets through state of the art POS Machines or through your website and experience hassle free payment acceptance. 

Prepaid Mobile Refill

If you are an HDFC Bank Account holder, you can now recharge your Prepaid Mobile Phone with this service.  

Bill Pay

Pay your telephone, electricity and mobile phone bills at your convenience. Through the Internet, ATMs, your mobile phone and telephone - with Bill Pay, our comprehensive bill payments solution. 

Visa Bill Pay

Pay your utility bills from the comfort of your home! Pay using your HDFC Bank Visa credit card and forget long queue and late payments forever 

Pay Now

Use your HDFC Bank Credit Card to pay your utility bills online, make subscriptions and donations; no registration required. Enjoy credit free period and reward points as per your credit card features. 

Insta Pay

Pay your bills, make donations and subscribe to magazines without going through the hassles of any registration. 

Direct Pay

Shop or Pay bills online without cash or card. Debit your account directly with our Direct Pay service! 

Visa Money Transfer

Transfer funds to any Visa Card (debit or credit) within India at your own convenience through HDFC Bank's Net Banking facility. 

e-Monies National Electronic Funds Transfer

Transfer funds from your account to other Bank accounts across India - FREE of cost.    Online Payment of Excise & Service Tax

Make your Excise and Service Tax payments at your own convenience through HDFC Bank's Net Banking facility.

Religious Offerings Now donate to your favorite temple easily and securely using HDFC BANK's Net

Banking. 

G. NRI BANKING

 With a view to attract the savings and other remittance into India through banking channels

from the person of Indian Nationality / Origin who are residing abroad and bolster the balance of

payment position, the Government of India introduced in 1970 Non-Resident(External) Account

Rules which are governed by the Exchange Control Regulations.

The funds held in Non-Resident (External) Accounts (NRE Accounts) qualify for certain

benefits like exemptions from taxes in India, free repatriations facilities, etc. 

Deposit types 

NRI-Banking facilitates the NRI customer to open the following account types.  

NRE (Non Resident External Accounts)

It can be in the form of Savings, Current or fixed deposits in Indian

rupees. The funds in this account are fully repatriable.

NRO (Non Resident Ordinary Accounts)

It can be in the form of Savings, Current or Fixed Deposits in Indian

Rupees. The funds in this account are not repatriable (only interest accrued

is repatriable). 

FCNR (Foreign Currency Non Resident Accounts)

It can be in the form of fixed Deposits only, in the five major currencies, namely US Dollars, GBP, DM, Euro, and Japanese Yen. The funds in this account are fully repatriable .

3.2 BUSINESS SEGMENT

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 corporate 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 corporate including multinationals, companies from the domestic business houses

and prime public sector companies. It is recognized 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, 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 Master card Maestro debit card as well.

The Bank launched its credit card business in late 2001. 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

liberalization of the financial markets in India, corporate 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.

The Treasury business is responsible for managing the returns and market risk on this investment

portfolio.

3.3 FINANCIAL PERFORMANCE

Profit & Loss Account: Quarter ended September 30, 2014

The Bank’s total income for the quarter ended September 30, 2014 was Rs.13,894.7

crore, as against Rs.11,937.7 crore for the quarter ended September 30, 2013. Net revenues (net

interest income plus other income) were at Rs. 7,558.1 crore, an increase of 19.6% for the

quarter ended September 30, 2014 over Rs. 6,320.9 crore for the corresponding quarter of the

previous year. Interest earned increased from Rs. 10,093.3 crore in the quarter ended September

30, 2013 to Rs. 11,847.6 crore in the quarter ended September 30, 2014, up by 17.4%. With

interest expense increasing by 12.8% to Rs. 6,336.6 crore for the quarter ended September 30,

2014, the net interest income (interest earned less interest expended) grew by 23.1% to Rs.

5,511.0 crore from Rs. 4,476.5 crore for the quarter ended September 30, 2013. Net interest

margin for the quarter was at 4.5% as against 4.3% for corresponding quarter ended September

30, 2013.

Other income (non-interest revenue) at Rs. 2,047.1 crore was 27.1% of the net revenues

for the quarter ended September 30, 2014 and grew by 11.0% over Rs. 1,844.4 crore in the

corresponding quarter ended September 30, 2013. The four components of other income for the

quarter ended September 30, 2014 were fees & commissions of 1,536.5 crore (Rs. 1,354.4 crore

in the corresponding quarter of the previous year), foreign exchange & derivatives revenue of Rs.

221.7 crore (Rs. 501.4 crore for the corresponding quarter of the previous year), profit on

revaluation / sale of investments of Rs. 95.1 crore (loss of Rs. 173.3 crore for the corresponding

quarter of the previous year) and miscellaneous income including recoveries of Rs. 193.8 crore

(Rs. 161.9 crore for the corresponding quarter of the previous year).

Operating expenses for the quarter ended September 30, 2014 were Rs. 3,497.9 crore, an

increase of 19.2% over Rs. 2,934.2 crore during the corresponding quarter of the previous year.

The cost-to-income ratio for the quarter was at 46.3% as against 46.4% for the corresponding

quarter ended September 30, 2013.

Provisions and contingencies were Rs. 455.9 crore (consisting of specific loan loss and

general provisions) for the quarter ended September 30, 2014 as against Rs. 385.9 crore for the

corresponding quarter ended September 30, 2013. After providing Rs. 1,222.8 crore for taxation,

the Bank earned a net profit of Rs. 2,381.5 crore for the quarter ended September 30, 2014, an

increase of 20.1% over the quarter ended September 30, 2013.

Balance Sheet: As of September 30, 2014

Advances as of September 30, 2014 were Rs. 327,273 crore, an increase of 21.8% over

September 30, 2013. This loan growth was contributed by both segments of the Bank’s loan

portfolio, with domestic retail loans and wholesale loans as per the Bank’s internal business

classification growing by 17.3% and 21.8% respectively (as per regulatory [Basel 2] segment

classification growing by 9.8% and 30.1% respectively). Retail loan disbursal for the first half of

the fiscal grew by 22% over the corresponding period of the previous fiscal. Total deposits as of

September 30, 2014 were Rs. 390,682 crore, an increase of 24.8% over September 30, 2013.

Savings account deposits grew 18.8% over the previous year to reach Rs. 110,810 crore and

current account deposits at Rs. 57,803 grew 21.4% over the previous year. CASA mix was

43.2% as at September 30, 2014.

Half Year ended September 30, 2014:

For the half year ended September 30, 2014, the Bank earned a total income of Rs.

26,965.4 crore as against Rs.23,526.3 crore in the corresponding period of the previous year. Net

revenues (net interest income plus other income) for the six months ended September 30, 2014

were Rs. 14,580.3 crore, as against 12,665.2 crore for the six months ended September 30, 2013,

an increase of 15.1%. Net profit for the half year ended September 30, 2014 was Rs. 4,614.5

crore, up by 20.6% over the corresponding half year ended September 30, 2013.

Capital Adequacy:

The Bank’s total Capital Adequacy Ratio (CAR) as at September 30, 2014 (computed as

per Basel III guidelines) stood at 15.7% as against a regulatory requirement of 9%. Of this, Tier-I

CAR was 11.8%.

NETWORK

As of September 30, 2014, the Bank’s distribution network was at 3,600 branches and

11,515 ATMs in 2,272 cities / towns, an increase of 349 branches and 338 ATMs over 3,251

branches and 11,177 ATMs in 2,022 cities / towns as of September 30, 2013 and an increase of

197 branches and 259 ATMs during this fiscal year so far. Number of employees increased from

69,662 as of September 30, 2013 to 75,339 as of September 30, 2014.

ASSET QUALITY

Gross non-performing assets (NPAs) were at 1.02% of gross advances as on September

30, 2014, as against 1.09% as on September 30, 2013 and 1.07% as on June 30, 2014. Net non-

performing assets were at 0.28% of net advances as on September 30, 2014. Total restructured

loans (including applications received and under process for restructuring) were at 0.1% of gross

advances as of September 30, 2014 as against 0.2% as of September 30, 2013.

CHAPTER 4

CSR ACTIVITIES AND FINANCIAL INCLUSION OF HDFC BANK

4.1 CORPORATE SOCIAL RESPONSIBILITY (CSR)

HDFC Bank, Corporate Social Responsibility is all about developing a business model that not only creates economic value but also contributes to a healthy ecosystem and strong communities. Our endeavour is to evolve and develop appropriate business processes and strategies to achieve a common goal which contributes to the greater good.

Sustainable Livelihood

HDFC Bank's Sustainable Livelihood Initiative is a business model that has helped empower thousands of people, particularly women, in rural parts of India. Through this initiative, the Bank reaches out to the un-banked and under-banked segment of the population and in doing so, helps as many people as possible at the bottom of the pyramid by providing them with livelihood finance.It involves a holistic approach - from offering training and enhancing occupation skills to providing credit counselling, financial literacy and market linkages - which financially empowers people and brings them into the banking fold.

The Capacity Building Program (CBP) has been very successful in creating a positive impact on the lives of many. The program focuses on providing key skills that on providing key skills that empower people to earn a respectable and better livelihood.

HDFC Bank's Sustainable Livelihood Initiative (SLI) empowers women in rural India by giving them direct access to livelihood finance, as well as non-financial services such as occupational training, credit counselling and financial literacy training.

Through this initiative we have reached out to over 20 lakh households across 24 states. In addition to this, we partner NGOs at the grassroots to provide skill training to over 2000 youth.

Changing lives through viable financing

HDFC Bank believes in developing the capacity of individuals by empowering them to become self-reliant and contribute to the society in a holistic manner. HDFC Bank as part of its commitment towards financial inclusion provides affordable access to basic banking products and banking services to the hitherto excluded and the often underprivileged and disadvantaged sections of the society.

HDFC Bank has always recognised the importance of giving back to society. HDFC Bank's "Power of Banking" programme aims to cover Government/Government-aided/Private school students between the age group of 11 and 15 years. 

Through our Sustainable Livelihood Initiative (SLI) we also offer non-financial services such as credit counselling and financial literacy training, in addition to providing access to livelihood finance.

HDFC Bank believe that financial literacy is a powerful tool to empower people; one that will help accelerate the pace of financial inclusion. 

The bank conducts rural financial literacy initiatives across the country under the aegis of the RBI to complement its efforts to support inclusive growth and take formal banking services to remote corners of India.

Financial literacy projects in 600 schools across Andhra Pradesh and Odisha, inculcating social and financial habits among students aged 8 to 14. So far we have reached out to 63200 students studying in Government schools.

Changing lives through education

Education is one of the building blocks of any nation. HDFC Bank recognises the importance and relevance of education. With the aim of having 'every child in 'school and learning' its interventions are aimed at strengthening and ensuring the quality of education that children receive. The Bank also recognises its responsibility to spread financial literacy and supports projects that aim at inculcating the same amongst members of society.

The 'Galli School Project' runs 20 pre-schools in the by-lanes of a slum community in Delhi. The project is implemented by our NGO partnerAshadeep Foundation and aims to educate children who have dropped out of school.In the last 4 years, close to 1000 students have been enrolled into formal schools.

Project "Grow with Books" is a program aimed at improving reading skills among children in class 1 to 4. We have partnered with Door Step School, to support 6 schools in Pune.The project has impacted close to 1925 students and showed a substantial increase in the overall reading ability.

The Library programme under Yountan project aims at enhancing reading and learning ability amongst the school students in Leh.Under this project, in partnership with 17000 ft. Foundation, 10 libraries will be set up in the next 3 years.

20 students from rural areas have been granted scholarship with Nisvartha Foundation, Bangalore. These students will receive support to complete their engineering degrees under the guidance of corporate mentors.

Under the integrated child development programme, 700 children have been supported in 2012-2013 on Education, Health, Nutrition, Sports and Life Skills in Chowpatty, Umerkhadi and Solapur areas.

Under the Family Based Care (FBC) programme, HDFC Bank has supported intensive, residential and holistic development of 30 children in Raipur, Bhopal and Srinagar.

Through the Chotay Taray Foundation, we have supported the education, training and rehabilitation needs of 35 special children in Srinagar.

Changing lives through training

In an educational system and occupational economy that is vastly skewed towards formal academics for gaining livelihood, it is practically the end of the road for millions of young who do not complete their education. HDFC Bank's livelihood initiatives are aimed at training and capacity development of youth and women from economically weaker sections of society and to empower them to gain access to opportunities and growth. HDFC Bank's livelihood support programmes are aimed at empowering competency-based, skill-oriented technical and vocational training.

HDFC Bank tied up with Hope Foundation for providing skill based training in computers, life skills and retail management courses to 100 youth in Kolar district, Karnataka.47% successful placements have already been made possible through various industry tie ups.

Together with National Bank of Jammu & Kashmir (NBJK), HDFC Bank will provide vocational training to 510 youth, creating opportunities for jobs in Giridh district, Jharkhand.So far 173 youth have been trained, out of which 100 have been successfully placed through different industry tie ups. The remaining 337 youth will be trained in the next 3 months.

The joint initiative of HDFC Bank and Mitra Jyothi impacted lives of 86 people in Bangalore. Under this project, they were provided training on computer skills which included basic knowledge on computer programmes and short term course on advance level MS Excel training. 16 candidates with visual impairment and 4 with locomotor disability were engaged in various industries such as telemarketing, assembly and garment.

938 students and youth have been trained from Udayan Care IT-VT centres to enhance their employability for better livelihood options.

The project addresses illiteracy, child labour and drop out from school faced by the underprivileged children in Karnataka. A total of 314 children between the age groups of 5 and 16 years studying in Government schools have been supported.The one year intervention resulted in improved academic performance, self esteem and confidence among these children and increased awareness among people about the needs of underprivileged children.

Community initiatives

Development in a large country such as ours, brings with it various challenges; the foremost is to translate economic growth to sustainable development. With a mission of empowering lives, our approach has meant greater involvement with communities in which we

operate. We take on a number of need-based projects that will help us make a difference to people's lives.

In response to the water crisis in Maharashtra, our bank has partnered with the Sri Sathya Sai Organization to construct rain water harvesting structures in three villages in Maharashtra. This will enable these villages to address the water situation and encourage similar local construction.

HDFC Bank have set up five blood storage centres in various states across India. HDFC Bank will be undertaking the construction of sanitation facilities at Vanvasi

Kalyan Ashram School, Mangaon, Maharashtra. Under this project 150 tribal girl students will be benefited.

In partnership with Child Aid Foundation, the Bank has been able to provide support to 350 poor and needy children under Vidya Education Project, Ashraya Home Project and Balika Girls' Project.

In the last 25 years, Vathsalya has been able to rescue over 1600 children and placed about 900 of them in permanent homes through adoption.HDFC Bank has entered into a partnership with the NGO and will support 200 children with an objective of overall psycho-social development, including education support.

Uttarakhand has been ravaged by the recent flash floods that have claimed thousands of lives and left many others stranded. During this severe crisis the entire nation came together to show its solidarity for the victims. HDFC Bank joined hands with HelpAge India and each employee donated one day basic salary to support the victims. The bank extended a matching grant to the total amount contributed by the employees towards the Prime Minister's Relief Fund. 2500 solar lamps were distributed as a part of the relief measure.

The 5th South Mumbai Junior Soccer Challenger 2013, Mumbai's only community based football championship which includes children from different backgrounds has been supported under CSR initiative of HDFC Bank. Last year the event was a grand success with over 520 teams and over 4,100 children participating. 600 school teams and approximately 5,000 children, 80% of whom are from state run schools, are expected to participate at the event.

4.2 FINANCIAL INCLUSION

Financial inclusion can be defined as providing affordable access to basic banking products and banking services like savings, loans, remittances, insurance, etc. to the hitherto excluded and often underprivileged and disadvantaged sections of the society.This disadvantaged section of the population comprises of marginal farmers, daily wage landless labourers, unorganised sector employees, urban slum dwellers, oral lessees, minority communities, SCs/STs, socially excluded groups and women. In India, affordable access to basic financial services has been denied to a majority of the population in the Eastern, North Eastern and Central Indian states besides several districts in other parts of the country. Financial exclusion is often the symptom as well as the cause of poverty. Hence inclusion becomes a major pre-requisite to poverty alleviation. The services to be offered under financial inclusion constitute

providing “no-frills” account, access to savings products, providing easy and right quantum of credit at affordable interest rates, insurance at affordable premia, etc

Financial exclusion has been predominant in rural areas primarily due to poor infrastructure resulting in lesser access. This along with financial illiteracy, burdensome documentation and procedures insisted by formal sources of credit, lack of customised financial products leads to exclusion. Lack of credit history and absence of documentary proof of identity or address of the prospective borrowers become obstacles for formal sources of credit to provide access to financial services. Consequently, this segment of the population goes to informal sources of credit for his/her financial needs even though it is costlier.

HDFC Bank in Financial Inclusion

With the objective of ensuring greater financial inclusion and increasing the outreach of the banking sector into unbanked and under-banked areas, the RBI had permitted banks to use the services of intermediaries such as NGOs/ SHGs (Self Help Groups) in providing financial and banking services through Business Facilitator and Business Correspondent models. This was a shot in the arm for the bank and the bank immediately conceptualised and implemented a method to achieve financial inclusion.

The bank has now successfully adopted the Business Correspondent (BC) model, as envisaged under the RBI guidelines and we have made a conscious strategy to disperse micro credit, thrift, insurance, remittance and other financial services where it is needed the most. Based on this strategy, the bank has formulated this SHG Bank linkage programme using the services of the BCs to bring in more clientele under financial inclusion and started implementing the same from September 2006.

Good quality NGOs (Societies, Trust and Sec 25 companies) are identified, rated and approved as Bcs.

MOU is entered with the BCs. SHGs sponsored by the BCs are rated for credit linkage The disbursements and collections are carried out at the door steps of the SHGs. Lower transaction cost and time leading to hassle free credit without diluting the

quality of the portfolio. RBI guidelines on BCs are fully complied with.

Highlights of the Programme

o The bank has appointed 151 top performing NGOs across the country as BCs providing SHG-Bank linkage.

o Rolled out SHG Lending Programme in September 2006 and MOU signed with the 151 BCs in 14 States.

o The bank has provided access to financial services to about 2.59 lakh families under 17,748 SHGs with disbursements of Rs.220 crore till date. The quality of portfolio is evidenced by the 100% on-time repayment track record.

o All the members of SHGs hail from remote villages / unbanked areas. All the clients are women belonging to weaker sections.

o More than 80 percent of credit facility availed by these SHGs are for agriculture and allied activities.

Reaching the Unbanked Through Financial Inclusion

1. Special groups like tribal, minorities, physically handicapped, beggars, SC/ST, commercial sex workers are encouraged to take up livelihood projects, thereby lending them a helping hand to bring them to the mainstream.

2. Out of the total micro finance clients of 2.59 lakh under SHG-Bank linkage programme, 28,892 belong to SC/ST. Of this 10476 members have been trained on banking aspects, account operation, repayment guidelines, etc. 13,115 beneficiaries falling under the minority community-categories have been provided with credit for taking up various economic activities to the tune of Rs. 14.07 crore in 7 states

3. 15,000 women members belonging to 95 SHGs residing in coastal area affected by tsunami have been provided with credit for livelihood activities.

4. The bank has designed an exclusive savings product for SHGs and provided “ZERO BALANCENO FRILL Accounts' for them. Till date 17,748 SHGs have been provided with such facility

5. 40 qualified, experienced, and specially trained relationship managers from reputed institutions with high levels of commitment and social orientation are on board in the business division to run this programme.

CONCLUSION

HDFC Bank, the banking arm of HDFC is expected to go on stream. The bank already has good number of employees on board and is recruiting personal banker heavily to take the headcount to many more. It is on the brim of increasing its customers through its attractive schemes and offer .

The  project  opportunities  provided  was market segmentation and identifying prospective customers in potential geographical location and convincing them to attract more customers so that new business opportunities of the bank can be explored. Through this project, it could be concluded that people are not much aware about the various products of the bank and many of them not interested to open an account, to invest money at all. services was considered as unsought good which require hard core selling, but in changing trend in income and people becoming financially literate, the demand for banking sector is increasing day by day.

So, at last the conclusion is that there is tough competition ahead for the company from its major competitors in the banking sector. Last but not the least I would like to thank HDFC Bank for giving me an opportunity to work in the field of Marketing and Operation. I hope the company finds my analysis relevant.