INSTITUTE OF MANAGEMENT STUDIES

GHAZIABAD

A PROJECT REPORT ON

TOPIC: RECRUITMENT AND SELECTION POLICY OF

HDFC BANK In

SUBJECT: HRM-B

Submitted to: Submitted by:

Prof. Soumen Mukherjee Nikhil Singh(BM-09124)

DECLARATION

We hereby declare that this submission is our own work & to the best of our knowledge & belief, it

contains no material previously published or written by another person nor material which to a

substantial extent has been accepted for the award of any other degree or diploma of the university

or other institute of higher learning except where due acknowledge has been made in the text.

Nikhil Singh(BM-09124)

Nupur Sharma(BM-09132)

Nupur Verma(BM-09131)

CERTIFICATE

This is to certify that the Project entitled “HR Practices of Bank of Baroda ” which is being

submitted by PGDM (Jyoti Varma(BM-09087),Kalap Sen(BM-09089),Manisha(BM-

09100),Mayank Mohan(BM-09106),Naveen Pandey(BM-09113),Neelu Chaudhary(BM-

09115),Neha Rathi(BM-09119),Nikhil Singh(BM-124),Nitya Singh(BM-091),Nupur Sharma(BM-

09132),Pradeep Sharma(BM-09142),Pratik Dhir(BM-09147), Prerna Paul(BM-09151),Priyanka

Gulati(BM-09152),Rashmi Amita(BM-09247) student of IMS, Ghaziabad is a record of the

candidate group’s own work carried by them under my supervision. The matter embodied in this

report is original and has not been submitted for the award of any other degree.

Project Guide:

Prof. Soumen Mukherjee Date: 04-01-2010.

PREFACE

Gross profit of the organization is directly influenced by the marketing strategy and practices

followed by the organization and it has always been one of the most important aspect of the

succeeding process. However in the recent age Marketing is the core function of any organization

to be put in sight of administration and always need standardized manual and digital backup. HR

department has a strong correlation and harbored link with marketing and rest of the departments.

HR is also responsible equally for the better output, services and productivity of any organization.

Both these factors are considered immense in BOB.

A century long sustainability of BOB is successful blend of the HR and marketing practices. BOB

planned to expand its wing internationally within 40 years of establishment in the decade of

independence, that proves BOB has been following a planned HR strategy from its day of

establishment. Within 50 years of establishment BOB got one of eminent organization of that time

‘The Hind’. Dissolution shows the constructive strength of HR practices followed by the BOB.

Economically effective presence of BOB in more than 25 nations is another proof of follow up of

class practices in HR adopted by BOB. Aims and objective in the declaration of BOB are

demonstrative elements of compactness of HR practices of BOB.

This report inculcate various aspects of infrastructural complexity and strength of BOB including a

specified emphasis on the HR practices followed by BOB.

ACKNOWLEDGEMENT

We would sincerely like to thank our project guide Prof. Soumen Mukherjee, for enabling us to

successfully carry out the project work through his constant guidance, for endless support and

continuous involvement in the project.

It was really worthwhile to receive help from Mr. S. K. Luthra, Senior Branch Manager of Bank

of Baroda, who in person was always present to help us out anytime we felt his need. Without his

constant support this project would not have been acknowledged as it is now.

Finally, we owe a great deal of sincere thanks to the faculty members who have been of great

support from time to time along with our friends, who kept encouraging us all along.

TABLE OF CONTENTS

SR.NO. CHAPTER PAGE

NO.

1. ABSTRACT 1

2. QUESTION 2

3. LOGO 3

4. INTRODUCTION 4

6. HR MISSION 21

7. TRAINNING 27

8. PROMOTION 28

9. COMPETITORS 52

10. BUSINESS STRATEGIES 54

11. ORGANIZATIONAL STRUCTURE 68

12. LITERATURE REVIEW 71

13. QUESTIONS ASKED 73

14. EXERPTS 77

15. CONCLUSION 80

16. RECOMMENDATIONS 81

17. APPENDIX 82

18. LIST OF REFRENCES 85

19 BIBLIOGRAPHY 86

20 GLOSSARY 87

INDEX

ABSTRACT

LOGO

INTRODUCTION

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.” They 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.

HDFC Ltd has the objective to enhance residential housing stock and promote home ownership. Their offerings range from hassle-free home loans and deposit products, to property related services and a training facility. They also offer specialized financial services to the customer base through partnerships with some of the best financial institutions worldwide. HDFC Bank is a young and dynamic bank, with a youthful and enthusiastic team determined to accomplish the vision of becoming a world-class Indian bank. Our business philosophy is based on four core values - Customer Focus, Operational Excellence, Product Leadership and People. We believe that the ultimate identity and success of our bank will reside in the exceptional quality of our people and their extraordinary efforts. For this reason, we are committed to hiring, developing, motivating and retaining the best people in the industry. HDFC Bank specializes in the provision of banking and other financial services to corporate and institutional clients. The companys services include commercial, transactional and electronic banking products. It also provides treasury services, retail banking and capital markets infrastructure. The company primarily operates in India. HDFC Bank is headquartered in Mumbai, India and employs about 14,900 people. The company recorded revenues of INR124,928 million (approximately $3,131.9 million) during the fiscal year ended March 2008, an increase of 51.9% over 2007. The net profit was INR15901.8 million (approximately $398.7 million) in fiscal year 2008, an increase of 39.3% over 2007.

HISTORY

HDFC Bank was incorporated in the year of 1994 by Housing Development Finance Corporation

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

receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the

private sector. The Bank commenced its operations as a Scheduled Commercial Bank in January

1995 with the help of RBI's liberalization policies.

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

Bennett, Coleman & Co. / Times Group) was merged with HDFC Bank Ltd., in 2000. This was the

first merger of two private banks in India. As per the scheme of amalgamation approved by the

shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank received 1

share of HDFC Bank for every 5.75 shares of Times Bank.

In 2008 HDFC Bank acquired Centurian bank of Punjab taking its total branches to more than

1,000. The amalgamated bank emerged with a strong deposit base of around Rs. 1,22,000 crore and

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

1,63,000 crore. The amalgamation added significant value to HDFC Bank in terms of increased

branch network, geographic reach, and customer base, and a bigger pool of skilled manpower.

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.

OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVE:

To find the Recruitment and Selection System in the organization.

To study the process of intake of employees with relation to Experience, Communication

skills and Qualification in the organization

ABOUT THE BANK

HDFC Bank is a young and dynamic bank, with a youthful and enthusiastic team determined

to accomplish the vision of becoming a world-class Indian bank.

HDFC’s business philosophy is based on four core values - Customer Focus, Operational

Excellence, Product Leadership and People. They believe that the ultimate identity and

success of bank will reside in the exceptional quality of people and their extraordinary efforts.

For this reason, they are committed to hiring, developing, motivating and retaining the best

people in the industry.

Why HDFC is better …?

1. Investment returns: investment returns and business growth provided by HDFC is

validated by bajaj Capital report. HDFC pacify the need of invertors up to healthy level and

make the strong relationship with them.

2. Financial Background and Experience: HDFC existing in the market since 1977. It has a

very handsome experience in the field of finance because it completely involved in finance

Sector only where as the others are running in many other field also like Reliance

(Petroleum, Textile, Telecom etc.)

3. Ethics and Values: HDFC is an ethical and cultural organization which prevents the false

selling and prohibit the false commitment to the customer.

4. Sales Force: Properly trend licensed and Educated People are the strength of the company.

So that they could give the best customer service.

5. Huge branch network HDFC is having 450 branches in all over the country.

6. Online accessibility : It makes the process faster and make the customer delighted.

MISSION AND BUSINESS STRATEGY:-

Mission of HDFC is to be "a World Class Indian Bank", benchmarking themselves against

international standards and best practices in terms of product offerings, technology, service levels,

risk management and audit & compliance. The objective is to build sound customer franchises

across distinct businesses so as to be a preferred provider of banking services for target retail and

wholesale customer segments, and to achieve a healthy growth in profitability, consistent with the

Bank's risk appetite. They are committed to do this while ensuring the highest levels of ethical

standards, professional integrity, corporate governance and regulatory compliance.

Business strategy of HDFC emphasizes the following:

• Increase market share in India’s expanding banking and financial services industry by

following a disciplined growth strategy focusing on quality and not on quantity and

delivering high quality customer service.

• Leverage technology platform and open scalable systems to deliver more products to more

customers and to control operating costs.

• Maintain the 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.

• Continue to develop products and services that reduce cost of funds

• Focus on high earnings growth with low volatility.

BUSINESS FOCUS:-

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

franchises across distinct businesses so as to be the preferred provider of banking services for target

retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent

with the bank's risk appetite. The bank is committed to maintain the highest level of ethical

standards, professional integrity, corporate governance and regulatory compliance. HDFC Bank's

business philosophy is based on four core values - Operational Excellence, Customer Focus,

Product Leadership and People.

HDFC Bank deals with three key business segments – Wholesale Banking Services, Retail Banking

Services, Treasury. It has entered the banking consortia of over 50 corporates for providing working

capital finance, trade services, corporate finance and merchant banking. It is also providing

sophisticated product structures in areas of foreign exchange and derivatives, money markets and

debt trading and equity research.

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.

HDFC Bank has made significant inroads into the banking consortia of a number of leading Indian

corporates including multinationals, companies from the domestic business houses and prime public

sector companies. It is 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 customers through

the growing branch network, as well as through alternative delivery channels like ATMs, Phone

Banking, Net Banking and Mobile Banking.

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

VISA (VISA Electron) and issues the MasterCard Maestro debit card as well. The Bank launched its

credit card business in late 2001. By March 2009, the bank had a total card base (debit and credit

cards) of over 13 million. The Bank is also one of the leading players in the “merchant acquiring”

business with over 70,000 Point-of-sale (POS) terminals for debit / credit cards acceptance at

merchant establishments. The Bank is well positioned as a leader in various net based B2C

opportunities including a wide range of internet banking services for Fixed Deposits, Loans, Bill

Payments, etc.

TREASURY:-

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

Local Currency Money Market & Debt Securities, and Equities. These services are provided

through the bank's Treasury team. To comply with statutory reserve requirements, the bank is

required to hold 25% of its deposits in government securities. The Treasury business is responsible

for managing the returns and market risk on this investment portfolio.

CAPITAL STRUCTURE:-

As on 31st December 2009 the authorized share capital of the Bank is Rs. 550 crore. The paid-up

capital as on said date is Rs. 455,23,65,640/- (45,52,36,564 equity shares of Rs. 10/- each). The

HDFC Group holds 23.87 % of the Bank's equity and about 16.94 % of the equity is held by the

ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue). 27.46 % of the

equity is held by Foreign Institutional Investors (FIIs) and the Bank has about 4,58,683

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.

CBoP and Times Bank Amalgamation:-

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

approved by Reserve Bank of India to complete the statutory and regulatory approval process. As

per the scheme of amalgamation, shareholders of CBoP received 1 share of HDFC Bank for every

29 shares of CboP.

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

around Rs. 89,000 crore. The balance sheet size of the combined entity would be over Rs. 1,63,000

crore. The amalgamation added significant value to HDFC Bank in terms of increased branch

network, geographic reach, and customer base, and a bigger pool of skilled manpower.

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

sector bank promoted by Bennett, Coleman & Co. / Times Group) was merged with HDFC Bank

Ltd., effective February 26, 2000. This was the first merger of two private banks in the New

Generation Private Sector Banks. As per the scheme of amalgamation approved by the shareholders

of both banks and the Reserve Bank of India, shareholders of Times Bank received 1 share of

HDFC Bank for every 5.75 shares of Times Bank.

DISTRIBUTION NETWORK:-

HDFC Bank is headquartered in Mumbai. The Bank has a network of 1,725 branches spread in 771

cities across India. All branches are linked on an online real-time basis. Customers in over 500

locations are also serviced through Telephone Banking. The Bank has a presence in all major

industrial and commercial centres across the country. Being a clearing/settlement bank to various

leading stock exchanges, the Bank has branches in the centres where the NSE/BSE have a strong

and active member base.The Bank also has 3,898-networked ATMs across these cities. Moreover,

HDFC Bank's ATM network can be accessed by all domestic and international Visa/MasterCard,

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

AWARDS:-

2010

Euromoney Private Banking and Wealth Management Poll 2010-

• Best Local Bank in India (second year in a row)

• Best Private Banking Service overall (moved up from no.2 last year)

Financial Insights Innovation Awards 2010-

• Innovation in Branch Operations - Server Consolidation Project

Global Finance Award-

• Best Trade Finance Provider in India for 2010

Banking Technology Awards 2009-

• Best risk management initiative and

• Best use of Business Intelligence.

SPJIMR Marketing Impact Awards (SMIA) 2010-

• 2nd Prize

Business Today Best Employer Survey-

• Listed in top 10 best Employers in the country.

INTERNET BANKING SYSTEM SECURITY: -

Login Security: Access to customer's Net Banking account is granted using a Customer ID and

IPIN (internet banking password) that is privy to the customer. Without a valid IPIN corresponding

to the customer ID, access to customer account cannot be gained by anyone.

The customer's Net Banking service is revoked if not in use by customer for more than 180 days for

security.

IPIN Security: IPIN is randomly generated by the system and directly printed on tamper proof

media such that it is not accessible by anyone other than the customer.

Customer is forced to change his IPIN such upon first login such that customer is assured that IPIN

is not compromised before delivery.

IPIN is stored by the Bank by use of encryption technology such that it is not accessible to anyone

including the system administrator.

Session Security: Access to the customers are provided through a secure webpage that encrypts the

session between the customer's computer and the webpage using 128-bit encryption so that the

communication between the customer's computers and the webpage cannot be intercepted by

anyone over the internet.HDFC Bank systems time out the customer's login sessions to his Net

Banking account upon prolonged inactivity for protection against misuse.

Digital Certificate: The webpage of the HDFC Bank's internet banking server is identified by

means of a digital certificate provided by Verisign to ensure its customer that they are on the correct

site and protect themselves from revealing their confidential account information on some fake

website.

Virtual keyboard: Customer can use the feature of Virtual Keyboard while logging into his Net

Banking account. This protects the users IPIN from being compromised by key logger software

installed on untrusted/shared computers e.g. cyber cafes.

Insta Alert: The Bank has Insta Alert service to send SMS/ Email alert to the customer upon

registration for defined transaction denominations and while adding beneficiary/ies for carrying out

Third Party Transfer transactions.

Security Solutions: All banking systems are secured using state-of-the-art security solutions

acknowledged world wide viz, firewalls, intrusion detection systems, intrusion prevention systems,

anti-malware systems to extend secure banking services to our customers.

Security Teams: The Bank has robust processes, skilled people and competent service providers

who monitor the security of our systems round the clock.

RECRUITMENT & SELECTION PROCESS

Meaning:

Recruitment and Selection system refers to sourcing and building efficient Human Resource

to the organization to attain its objectives.

Functions: 1. Retail assets • Credit cards • Retail assets • Retail credit 2. Retail liabilities • Direct banking • Direct sales liabilities • Foreign exchange services • Liabilities product group • Marketing • Retail branch banking 3. Support function • Custody and depository services • Finance • Human resources • Operations 4. Wholesale banking • Corporate banking • Credit and market risk • Customer service desk • Emerging corporate group • Emerging enterprise group • Equities and private banking • FIG • Health care finance • Investment banking • NRI businesses • Stock exchange and correspondent banking

This policy complies with, and supports, the Company’s Equal Opportunities Policy by:

• Ensuring that every stage of the recruitment and selection process is carried out in a

systematic way, based on pre-agreed criteria, to eliminate the potential for personal bias

affecting the decision making process.

• Ensuring that all decision points are fully documented to assist with subsequent monitoring.

• Making the whole procedure as open as possible, to ensure that all candidates understand

why decisions have been taken and, where they wish, to obtain meaningful feedback.

• Enabling demonstration of robust, transparent processes and thereby providing a basis for

defense in the event of challenge.

There are seven main stages to the procedure:

Pre-advertisement

placing advertisements and dealing with enquiries and applicants

short-listing

interviewing and selection

Post-selection procedures

Induction

monitoring

Analyzing Your Workplace:

To assist you analyze your workplace to identify recruitment or selection issues for women, we

suggest you:

• revisit your workforce profile to find where your female employees are.

• consult with your employees.

• examine your existing recruitment and selection policies and practices.

Developing Policy and Procedures

• Put in place a policy requiring recruitment and selection processes to select the best person

for the job.

• Develop a quality, consistent process for recruitment that delivers diverse recruits.

• Have a recruitment strategy that links to your business plan, and to a strategy to retain

employees.

Reviewing Recruitment and Selection Opportunities

• Monitor each stage of the recruitment process to identify any practice that may disadvantage

some candidates.

• Investigate whether women have equal opportunity in the recruitment and selection process

by collecting information on the numbers of men and women:

applying for positions

being short-listed

being interviewed

being appointed, and

Survey staff about their perception of equity in recruitment procedures.

• Consider collecting diversity information as part of the process. There could be a pool of

diverse candidates you’re not reaching or unnecessarily excluding.

Reviewing Job Descriptions:

• Ensure all job profiles/descriptions reflect the real requirements of the job, rather than

describing the person who filled that job previously.

• Write job profiles in language that encourages both men and women to apply – including

women of and Differing backgrounds. For example, avoid use of jargon and acronyms that

tend to be exclusive.

Recruiting and selecting the right people is paramount to the success of the HDFC BANK LTD. and

its ability to retain a workforce of the highest quality. This recruitment and selection policy sets out

the procedure to ensure that the best people are recruited on merit and that are the recruitment

process is free from bias and discrimination.

PRINCIPLES:

Following are the guiding principles for recruitment and on-boarding process.

• Attracting and recruiting the right people is one of the most important activities of the organization

and is the responsibility to be owned by each and every employee of the organization.

• Merit will be the single most important factor in selection process.

• They will ensure a diversity, both gender and ethnicity by targeted candidate sourcing with the

help of recruitment vendors and the referral program.

• While skills and profile matching play an important role, they will hire people who are team

players and have the right attitude most relevant to the culture of the organization. Attitude is as

important as aptitude.

• They believe in becoming a company of giants and emphasis is in hiring people who can grow

bigger and better than they presently are.

• They believe in providing their employee with fulfilling career paths. Towards this, they will post

vacancies internally as a preferred option while evaluating external candidates.

• They believe that each candidate interviewed irrespective of whether she/he is selected should

become a friend of the organization. They treat all the candidates with the utmost respect. They will

be open and fair in communication with them; this way they also enhance the brand image of the

organization.

• They will continuously assess, identify and cultivate strategic talent pools including those at the

universities, management schools, and community forums to address their long term needs.

HIRING APPROVAL

• All recruitment activities shall be undertaken based on the hiring plan as approved by the Business

Head, HR Head & the CEO. For each approved position, a hiring requisition will be required prior

to initiation of any recruitment activity. If the hiring was not included in the planned budget, it will

also require approval from the CEO based on a recommendation from the Head HR and the CFO.

• Recruitment expense will be allocated to the concerned business unit, and expenditure should be

budgeted and pre-approved by the business unit head and the HR Head.

CANDIDATE SOURCING:

The hiring manager along with the Human Resource Department would decide the channel / source

to use based on the nature of the recruitment. The following sources of recruitment may be

considered:

• Internal Sources:

- Whenever any vacancy arises, the possibility of fulfilling the requirement internally via

reassignment and relocation, re-allocation of the responsibilities or internal promotion will be

explored by the hiring function along with the HR Department.

- Internal job postings to explore internal candidates.

• Employee Referrals – HDFC will encourage employees to refer suitable candidates for open

positions.

• Other external sources include:

- Recruitment agencies

- External job postings

- College / campus requirement

− Requirement advertisements

−

APPLICATION PROCESSING

HDFC will process all applications promptly and inform the applicant or source regarding the status

of the application. HDFC will respond to all solicited applications within 5 working days of

receiving the application.

INTERVIEW PROCESS

• All candidates are required to undergo a face to face interview with the interview panel before

selection.

• Interviews may be conducted at a place at mutually convenient locations and time in an effort to

maintain confidentiality of the hiring effort.

• One on one meeting shall be preferred as the interview format, however depending on the

constraints panel interviews / telephone / video conference screening could be used.

• For recruitment at junior levels, job fairs, universities etc, where large volume of candidates,

HDFC will use recruitment tests for purpose of short listing. The candidate may be tested on the

basic aptitude, analytical skills or other skills required for the job of the candidates.

• The interview process will focus on the evaluating the candidates suitability in terms of the job

description and fit within the organization.

• Each interviewer will complete the interview feedback form and submit it to HR. HR will compile

the results from a various interviews and provide these to the line manager for the final decision.

The following are the guidelines wit respect to the interview levels. The line manager will own the overall interview process: Position, Level Equipment Hiring Decision by Interview by Salary Fitment Offer Letter Signed by Direct Report CEO Head CEO/ HR Head, Management Team (for relevant functions) Approval - CEO Proposal – HR Head CEO State Head/ Regional Function Heads, Cluster Heads Regional Branch Heads, National functional Heads Regional Branch Head / National Functional Head, Regional HR Approval – CEO Proposal – HR Head HR Head Branch Manager / National Functional Managers Regional Branch Heads, National functional Heads Regional Branch Head / National Functional Head, Regional HR, Cluster / State Head Approval – HR Head Proposal – C & B Manager HR Head Senior Relationship Manager Regional Branch Head/ Branch Manager Regional Branch Head/ Branch Manager, Regional HR Approval – HR Head Proposal – C & B Manager Staffing Leader Junior Relationship Manager Branch Manager Branch Manager, Cluster Head Approval – C&B Manager Proposal – Regional HR Mgr. Regional HR Manager For campus / bulk hiring process, each panel will be specifically authorized with respect to hiring decision, pay by the HR Head & CEO prior to the process.

RECRUITMENT EXPENES: • All recruitment expenses including recruitment fees, advertisement expenses and interview related expenses will be allocated to the concerned business unit. • The candidate will be informed about the nature of the expenses that are reimbursable and the supporting documents required (in original). HR will ensure that candidate fills the necessary reimbursement forms and that he/she receives the reimbursement at the earliest. • Outstation/International Candidates - HDFC will pay for appropriate air fare and expenses incurred for the stay for candidates who they decide to fly from other locations. Prior approval from the Regional HR Leader / HR Head is required to invite candidates. For candidates from International Locations, prior approval from the HR Head needs to be taken. PRE-EMPLOYEMENT CHECK This will include both a professional reference check as well as the background check. • Professional reference check will be completed by the hiring manager. HDFC will request contact information for 2 references from the candidate, and check the quality of previous work experience and key personal characteristics/conduct/ previous record etc. • For key positions in areas, HDFC will also perform a background check to assess the integrity / conduct of the candidate. • The following information regarding the candidate will be verified: ü Proof of educational qualifications ü Any professional certificate that is essential to the job ü Address details ü Passport details ü Date of birth ü Proof of previous employment (service certificate) Any negative feedback and comment in the reference check will be investigated by HR and if found genuine shall be a cause for disqualification of the candidate or dismissal from employment. OFFER PROCESS: • Once the hiring decision is finalized, HR will prepare an offer / fitment as per the compensation structure and grade and keeping in mind the internal equity. • The offer would be communicated to the selected candidates by the hiring manager along with HR. The candidate will sign the contract letter to formally accept employment from the organization. PRE-EMPLOYMENT PROCESS As an organization, HDFC will make all necessary arrangements to ensure a smooth joining process for the employees. HR will provide the candidate a check list prior to joining to ease joining formalities. RELOCATION FOR EMPLOYMENT Where the employee has to relocate and has been pre-approved by the HR Head and the staffing leader, the relocating candidate shall be eligible for the following relocation assistance: The joining employ has the option to avail temporary accommodation (which includes laundry) for the first two weeks arranged by organization. The stay in company provided accommodation can be extended by two weeks further based on specific approval from the Head HR. Where the stay extends beyond 4 weeks, the respective will not be paid housing allowance foe the corresponding period.

Local travel assistance up to positions of RO/RM/equivalent and below will be reimbursed for one week and for SRM/equivalent and above will be reimbursed up to two weeks. Food expenses during the period will be reimbursed as per actual up to Rs 500/-per day per person. Approved reasonable expenses incurred in transporting the personal goods including the transportation /registration of one automobile to the city of work. Employees are advised to use the designated moving agencies as per rates negotiated by Administration. Where negotiated rates are not available, the employee is required to submit 3 quotations and secure approval from Administration before assigning the contract to a moving firm. EMPLOYEMENT OF RELATIVES The organization employs, purely on merit, the relatives of our employees as long as it does not create a potential conflict of interest. To avoid a potential conflict of interest and to reduce the possibilities of favoritism – the following guidelines must be followed: Relatives are not assigned to a position where he/she has the opportunity to check, process, and review, approve, audit or otherwise affect the work of the persons cited and above. NO one is assigned to a position where she/he influences the professional progress or promotion of the persons cited above. If one is aware of a situation that appears to be an opportunity for people to display favoritism to relatives, one should contact the Department Head or Human Resources Department. Employees will not be part of the hiring process of their relatives DEFINITION OF RELATIVES: Relatives would include husband, wife, children, parents, sisters, brothers, first cousins, brothers-in-law, sisters-in-law, mother –in-law, and father-in-law. Employees who are aware of candidature of their relatives for the organization must immediately report to the HR function in writing for information and records. Failure to immediately report such cases will be considered as a serious violation of the recruitment policy and may entail a disciplinary action. INTERNSHIP PROGRAM As part of university hire program, HDFC will provide internship opportunities to students. Such internships will provide opportunities to students to learn while making real contributions to the company. HDFC will follow the following process: • HR will coordinate with business groups to identify potential opportunities for intern hires. • Internship requests could be received either from the students directly or as nominations from the educational institute. • HR and hiring manager to tele-interview the candidates with subsequent personal interviews in the office • HR to coordinate with the hiring manager to develop the project plan for the hire Based on the demonstrated capability, the intern will be provided with the opportunity to work in multiple departments to gain a wider business understanding INTERNSHIP CRITERIA Typically, the intern will be a pre-final year student of the Bachelor or Master degree programs specializing in Financial Services/IT and any other business stream as required. Interns will be expected to manage their won accommodation and it will not be provided by the company Intern will be required to sign the confidentiality and code of conducts documents of the company

EMPLOYEE ON-BOARDING – PROCESS The overall purpose of the new hire integration process is to ensure that the new employee is able settle in smoothly and is able to contributing at the earliest. PRE EMPLOYMENT INDUCTION HDFC’s employee induction process shall begin as per the employee accepts the job offer. The process includes: Welcome pack: As soon as the candidate accepts the offer, a welcome pack will be sent to the employee A congratulatory note regarding the decision to join the organization Contact details of a HR representative and the hiring manager A brief company overview document Pre-joining checklist: Include details of the documents required from the employee. In case the employee is relocating from a different location, details of the relocation process and the visa requirement will be outlined in this checklist Expectations on the first day of the joining Office resources: HR shall intimate the immediate supervisor the joining date and immediate supervisor shall work with the IT and administration team to set up the following 5 days prior to employee joining, the following elements and are in working order: Email ID, phone, computing resources, work space/office, access cards, joining kit including bank account opening form, initial reading material POST JOINING ORIENTATION AND INDUCTION Joining kit: The employee upon joining would be welcomed by the HR representative and would be given a joining kit that will include: Access card, information on employee’s email and phone number, Bank account opening form, corporate insurance application form(if applicable),HR & Admin policy manual, other relevant reading material ( to be prepared by hiring manager) Classroom Induction: The employee integration process will also include classroom training and induction where the employee will receive presentations and trainings on various topics that would further ingrain the into the organization On the job training: Besides formal training sessions, the employee will undergo on-the-job function specific trainings that are facilitated by the respective functions to help the new employee acquaint himself/herself with work in progress. PROBATION POLICY Probation is a trial that is mutual opportunity for the employee and HDFC to confirm suitability for continued employment. The probation period is to establish a stronger understanding of mutual capabilities, expectations and understanding which may include functional training. The employee must demonstrate suitability for continued employment. An assessment will be based on factors related to work performance, work habits, productivity, attitude and compatibility, attendance and punctuality, and any other matter that is linked to job performance and expectations. All new hires will be placed on probation for a period of 6 months from the date of joining HR will initiate the confirmation process by sending an appraisal form to the immediate supervisor before the completion of probationary period. The appraisal form will need to be approved by the supervisor’s leadership All letters of confirmation or extension of probation will be signed by the HR head and will be stored in employee file for records.

REFERRAL BONUS AMOUNT • The Referral Bonus Program is operated under the authority of the Budget and Control Board’s Employee Bonus Guidelines. Under these guidelines, an employee may receive multiple bonuses, the total of which may not exceed $2,000 in any fiscal year. • Referral bonus payments may be paid in a lump sum or in periodic payments until the new employee has completed his or her probationary period. Payments cannot be made until the referred candidate has been employed for a minimum of one month. For example, a $1,000 referral bonus can be structured as follows: - $250 referral bonus awarded after three months from the hire date, - $250 referral bonus awarded after six months from the hire date, - $500 referral bonus awarded at the end of the probationary period. REFERRAL BONUS PROGRAM ADMINISTRATION The Referral Program operates in accordance with the following program requirements: • Referral bonuses are awarded at the discretion of management with the Agency Director or his designee having final approval authority. • Funding for the program must come from existing agency resources. • The Agency will provide a form for completion and submission by either the applicant or the referring employee with the applicant’s application indicating that the referring employee has made the referral. • The Agency will designate a position as “hard-to-fill” before the position is posted. • Employees selected for eligible positions must be employed by the agency for at least one month before a referring employee may be eligible to receive a referral bonus. Referred candidates cannot be current employees of the hiring agency in any capacity, to include temporary, temporary grant, research grant, time- limited project, or contract employees. Both the referring employee and the referred candidate must be employed by the agency when any referral bonus is paid receive the referral bonus. • Any disputes arising from the application of this program will be the responsibility of the Agency Director or his designee to resolve and will not be considered a grievance under the State Employee Grievance Procedure Act. • The agency HR Office will monitor the use of the Referral Bonus Program and will report annually to the Office of Human Resources information on the use of the Referral Bonus Program. • The hiring process will be fair and consistent with agency policy and procedures, with no bias for or against candidates whose selection might make another employee eligible for a referral bonus. Amount paid to the employees who refer the candidates and if they get selected varies from Rs. 7000 to Rs.2000 based on the grade of the employee refereed and the refereed candidate placed. This amount is paid to the employees in two ways: 1. Immediately when the candidate is joined 2. After the completion of 3 months of the candidate selected. Only middle level and senior level management employees have the opportunity of referring the candidates. This policy/scheme is not applicable to the top management employees. Also the employees who are under probation or training period are not eligible for this employee referral policy.

FINDINGS

1. Recruitment at an officer and managerial level is not done effectively. 2. Many people in the organization today are in the wrong jobs and as a result, they are not utilizing their full potential. 3. Hiring people based on personal connections when the person is not qualified for the job. 4. Most recruitment that involves managers is done during discussions at lunch hour, at social clubs or during the coffee break time. 5. Inadequate recruitment procedures resulted in a number of staff not being sufficiently qualified either for the positions they hold or their grades levels, especially in management positions. 6. Psychometric test is not conducted during the selection process. 7. Confusion in the designation and level to the employees even after permanent status for employment is given. 8. Proper training is not given to the recruitment team and manager. 9. Reaching few prospects due to internal recruitment, internet advertising most of the time.

RECOMMENDATIONS

• The organization should provide or set up a communication lab for the benefit of the fresher

and existing employees that makes a career development and new opportunity to grow up in

the organization.

• This increases the employee morale and helps to attain the target.

• Communication classes should be conducted timely to all employees should be followed by

organization.

• Refresher courses may organize intermittently for all employees in the rank and file

category to relive job fatigue and monotony of every day work life. So employees can gain

skills by Communication.

• Candidates who enter into the Job Market must make sure that their efficiency in

Communication is up to the expectation of an organization which will make them to go

through the Recruitment and Selection system of Royal Sundaram Alliance Insurance

Company.

• The respondents in the corporate exhibits that communication skills are necessary for all the

employees from different channels.

• FOS (Fleet on street) Team should be made involved to pass through more communication

classes from language experts.

• The company should allot funds to create a communication laboratory for the beneficiary of

all the employees.

SUGGESTIONS

1. Psychometric tests have to be conducted to assessing the personality of the applicants – will they fit in? 2. Look for different skills as well as the ideas of the candidate at the time of recruitment and selection process. 3. Adopting adequate recruitment procedures to employ efficient and talented people. 4. Job responsibilities have to be clearly explained to the candidate before the joining formality is done. 5. Campus recruitments, job fairs may attract more skilled and talented employees towards the organization. 6. Provide orientation training to all new employees before their initial work assignments and to all current employees who receive a different task or job. 7. Referral scheme has to be encouraged more at times when the requirement is urgent.

CONCLUSION

Recruitment is essential to effective Human Resources Management. It is the heart of the whole HR systems in the organization. The effectiveness of many other HR activities, such as selection and training depends largely on the quality of new employees attracted through the recruitment the recruitment process. Policies should always be reviewed as these are affected by the changing environment. Management should get specific training on the process of recruitment to increase their awareness on the dangers of wrong placements. Effective recruitment is important in achieving high organizational performance and minimizing

labor turnover. As of now HDFC Bank Ltd. has a team of effective human resource which is

efficiently managing the organization at its best. Though the recruitment process adopted by the

organization needs to be improved, challenges are ahead for the HR Department to recruit people

after the effect of recession.

In the present competitive & dynamic environment, it has become essential for organization

to build and sustainable.

In competitive advantage, the Communication skill set has assumed more importance than

even before. Dynamic and growth-oriented organization recognizes Communication as an important

aspect of the Recruitment and Selection system for managerial function in a rapidly changing and

economic environment.

Insurance industries should possess a valuable work force with good communication skill sets to get

a good deal or business from their customers. In this sector the Open Market channel is the main

source of revenue for the company for which they should be able to communicate well with their

clients. Then the company can reach its profitability and objectives easily.

The company should take the suggestions and ideas from the employees and can conduct

and examine the communication skill set within the employees. So that they can analyze the need

and act accordingly for a better result and the growth of its own and valuable workforce.