IFBI

Roll No: 8

Project Report: Retail Asset Products of HDFC Bank

In Partial Fulfillment of PGDB course of IFBI Jaipur Centre

Project Prepared

Table of Contents

Sr. No.

Topic Page No.

1. Overview of HDFC Bank 32. Business focus of HDFC Bank 43. Wholesale banking services 4

4.Retail banking services

4

5. Branches of HDFC Bank 56. Management 67. Shareholding Pattern and Liquidity 78. Products Of HDFC Bank 79. Business 8

10. Competitors of HDFC Bank 911. Different Products of HDFC Bank 1012. Awards and Recognition 1113. Project Study - Retail Asset Products of HDFC

Banki. Home Loan

ii. Car Loaniii. Education Loaniv. Personal Loanv. Loan against Property/Gold Ornaments

vi. Loan against Shares/Debentures

14141619222325

14. Conclusion 2615. Bibliography and References 27

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OVERVIEW of HDFC Bank

HDFC Bank is the biggest banking and financial services company in India by revenue, assets and market capitalization August 1994. It is a private-owned corporation with its headquarters in Mumbai, Maharashtra. HDFC Bank is the fifth or sixth largest bank in India by assets and the second largest bank by market capitalization as of February 24, 2012. The bank was promoted by the Housing Development Finance Corporation, a premier housing finance company (set up in 1977) of India. HDFC Bank has 1,986 branches and over 5,471 ATMs, in 996 cities in India, and all branches of the bank are linked on an online real-time basis. As of 30 September 2008 the bank had total assets of Rs.1006.82 billion. For the fiscal year 2010-11, the bank has reported net profit of 3,926.30 crore (US$783.3 million), up 33.1% from the previous fiscal. Total annual earnings of the bank increased by 20.37% reaching at 24,263.4 crore (US$4.84 billion) in 2010-11. HDFC Bank is one of the Big Four banks of India, along with: State Bank of India, ICICI Bank and Punjab National Bank.

HDFC Bank provides a range of banking products through its vast network of branches in India and overseas, including products aimed at non-resident Indians (NRIs). HDFC Bank has the largest branch and ATM network spread across every corner of India. The bank has a branch network of over 12,000 branches. Apart from Indian network it also has a network of 157 overseas offices in 4 countries in all time zones, correspondent relationship with 52 International banks in 123 countries.

Times Bank Limited (owned by Bennett, Coleman & Co. / Times Group) was merged with HDFC Bank Ltd., in 2000. This was the first merger of two private banks in India. Shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank.

In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total branches to more than 1,000. The amalgamated bank emerged with a base of about Rs. 1,22,000 crore and net advances of about Rs.89,000 crore. The balance sheet size of the combined entity is more than Rs. 1,63,000 crore.

HDFC Bank is a regional banking behemoth and is one of the largest financial institutions in the world. It has a market share among Indian commercial banks of about 20% in deposits and loans. The State Bank of India is the 29th most reputed company in the world according to Forbes. Also, HDFC Bank is the only bank featured in the coveted "top 10 brands of India" list in an annual survey conducted by Brand Finance and The Economic Times in 2010. It is ranked #292 globally in Fortune Global 500 list in 2011. The HDFC Bank is the largest of the Big Four banks of India, along with ICICI Bank, Punjab National Bank and State Bank of India —its main competitors.

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Business focus

HDFC Bank deals with three key business segments. - Wholesale Banking Services, Retail Banking Services, Treasury. It has entered the banking consortia of over 50 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. HDFC bank policy is to charge maximum from customers while providing the same or less service as compared to other banks. Minimum balance required for saving account is Rs. 10,000.00 while there are banks in the market like IDBI which provide zero balance account with far better features from HDFC saving account. Servers on Saturdays may be down, there is no toll-free number from Delhi-NCR. A demand draft costs Rs. 75. If you get bank statement from other branch of HDFC, it'll cost you Rs. 110 and chances are you won't be informed about these charges. And if you wish to close your saving account before a certain period (at present six months), a certain amount of money will be deducted from your account. Again its very likely that you won't be informed about such charges during opening of your account.

Wholesale banking services

Blue-chip manufacturing companies in the Indian corp to small & mid-sized corporates and agri-based businesses. For these customers, the Bank provides a wide range of commercial and transactional banking services, including working capital finance, trade services, transactional services, cash management, etc. The bank is also a leading provider of[clarification needed] for its corporate customers, mutual funds, stock exchange members and banks.

Retail banking services

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 March 2009, the bank had a total card base (debit and credit cards) of over 13 million. The Bank is also one of the leading players in the “merchant acquiring” business with over 70,000 Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant establishments. The Bank is positioned in various net based B2C opportunities including a wide range of internet banking services for Fixed Deposits, Loans, Bill Payments, etc. With Finest of Technology and Best of Man power in Banking Industry HDFC BANK's retail services have become by and large the best in India and since the contribution to CASA i.e. total number of current and savings account of more than 50% ,HDFC BANK has full potential to become India’s No.1 Private Sector Bank. HDFC Bank website including hdfcbank.com and hdfcsec.com are not available 24X7. This has become a habit of HDFC Bank. Customers of the HDFC Bank are requested to check the website availability 24 X 7 and if available can do the transaction. If the website is not available they are asked to visit their home branch.

Treasury

Within this business, the bank has three main product areas - Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. These services are provided through the bank's Treasury team. To comply with statutory reserve requirements, the bank is required to hold 25% of its deposits in government securities. The Treasury business is responsible for managing the returns and market risk on this investment portfolio.

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Branches of HDFC Bank HDFC Bank has 172 foreign offices in 37 countries across the globe. HDFC Bank has about 25,000 ATMs (25,000th ATM was inaugurated by the then Chairman

of State Bank Shri O.P. Bhatt on 31 March 2011, the day of his retirement); and HDFC BANK group (including associate banks) has about 45,000 ATMs.

HDFC Bank has 21,500 branches, including branches that belong to its associate banks. HDFC Bank includes 99345 offices in India. India's number one ADB is in bellary i.e. State bank of India bellary ADB

International presenceAs of December 31, 2009, the bank had 157 overseas offices spread over 32 countries. It has branches of the parent in Colombo, Dhaka, Frankfurt, Hong Kong, Tehran, Johannesburg, London, Los Angeles, Male in the Maldives, Muscat, Dubai, New York, Osaka, Sydney, and Tokyo.

It has offshore banking units in the Bahamas, Bahrain, and Singapore, and representative offices in Bhutan and Cape Town. It also has an ADB in Boston, USA. HDFC bank operates several foreign subsidiaries or affiliates.

In 1982, the bank established a subsidiary, HDFC bank (California), which now has ten branches – nine branches in the state of California and one in Washington, D.C. The 10th branch was opened in Fremont, California on 28 March 2011. The other eight branches in California are located in Los Angeles, Artesia, San Jose, Canoga Park, Fresno, San Diego, Tustin and Bakersfield.

The Canadian subsidiary, HDFC bank (Canada) also dates to 1982. It has seven branches, four in the Toronto area and three in British Columbia. In Nigeria, This bank began in 1981 as the Indo-Nigerian Merchant Bank and received permission in 2002 to commence retail banking. It now has five branches in Nigeria.

In Nepal, HDFC bank owns 55% of Nepal HDFC bank, which has branches throughout the country. In Moscow, HDFC bank owns 60% of Commercial Bank of India, with Canara Bank owning the rest. In Indonesia, it owns 76% of PT Bank Indo Monex.

The HDFC bank already has a branch in Shanghai and plans to open one in Tianjin. In Kenya, State Bank of India owns 76% of Giro Commercial Bank, which it acquired for US$8 million in October 2005.

The HDFC bank (with 74% of the total capital) along with the largest global banking group—BNP Paribas (with 26% of the remaining capital) headquartered in Paris—formed a joint venture which established India's most reputed and trusted life insurance company named HDFC bank Life Insurance company Ltd. in March 2001.

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ManagementMr. C.M. Vasudev has been appointed as the Chairman of the Bank with effect from 6th July 2010. Mr. Vasudev has been a Director of the Bank since October 2006. A retired IAS officer, Mr. Vasudev has had an illustrious career in the civil services and has held several key positions in India and overseas, including Finance Secretary, Government of India, Executive Director, World Bank and Government nominee on the Boards of many companies in the financial sector.

The Managing Director, Mr. Aditya Puri, has been a professional banker for over 25 years, and before joining HDFC Bank in 1994 was heading Citibank's operations in Malaysia.

The Bank's Board of Directors is composed of eminent individuals with a wealth of experience in public policy, administration, industry and commercial banking. Senior executives representing HDFC are also on the Board.

Senior banking professionals with substantial experience in India and abroad head various businesses and functions and report to the Managing Director. Given the professional expertise of the management team and the overall focus on recruiting and retaining the best talent in the industry, the bank believes that its people are a significant competitive strength.

Shareholding & Liquidity (Till 30th Sept. 2011)

Leveraging the knowledge and experience of some of the finest financial advisors, HDFC Bank offers its clients a range of strategic and innovative wealth management solutions.

Our bouquet of services ensures that our clients can pursue an individualized plan to achieve their investment goals. Our product suite is a one-stop solution for your entire portfolio needs across equity, fixed income, mutual funds, structured products, estate planning, etc. customized to your risk-return profile. Our product suite includes:

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Product suite includes:Direct Equity

Our in-house equity research desk provides recommendations based on strong company fundamental analyses. This is supported by a network of analysts with expertise in key sectors across industries. Our equity desk tracks various sectors and uses a mix of top down and bottom-up approach to identify stocks. Exposure to these is recommended on the basis of your risk profile - be it conservative, aggressive or moderate.

The direct equity product offering include:-

Model Portfolio (Aggressive & Conservative) Stock Flash Regular company/result updates Regular company updates Thematic Notes: These notes are largely sent to discuss important events/themes that are

impacting the markets and desk views on the same Market Impact: These are notes on quarterly analysis of the companies of the model

portfolios

Sector report/ Sector Update: These are notes on a specific sector, explaining the basic business model and subsequent updates on the current scenario in the sector

Mutual Funds

We offer a complete range of equity, debt and ultra-short term income funds and liquid funds to meet individual risk-return objectives. The selection of mutual funds is based on wide parameters and built on statistical models and quantitative tools like standard deviation, volatility, rolling returns, expense ratio and more. The funds are distributed to clients across top AMCs and are built on the principles of conservative approach and focused advice. MAAG (mutual fund analysis tool) is used to analyze the equity and balanced mutual fund holdings with respect to the asset allocation, market capitalization, sectoral holdings and company holdings.

Fixed Income Products

We offer fixed income products like government bonds, tax-free bonds, fixed maturity plans, income funds; Bank Deposit, etc. in line with the client's risk-return profile. Capital Gains Bonds like NABARD, NHAI, REC and RBI Bonds are also provided to clients.

Insurance

Insurance solutions offer an advanced means of managing wealth, offering succession planning tools for UHNW individuals. We offer customized insurance solutions to meet the lifecycle needs of the client through our partner HDFC Life.

Life Insurance General Insurance (General insurance products are provided through our partner HDFC

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ERGO covering your entire risk spectrum)

Business Insurance wherever there is an insurable interest of the business

Estate Planning

Estate Planning permits you to protect your wealth and transfer it to future generations. We offer a wide range of products and well-thought approach to transfer your assets to the next generation according to your objectives and wishes. Estate planning services are provided through our partner Warmond Trustees & Executors Pvt. Ltd. Warmond's estate planning services provide clients peace of mind by ensuring their estate is in order and their loved ones will always be taken care of. The professional team comprises of investment, banking and legal experts who provide clients specialized advice in all areas of estate planning. Client needs are met through:

Prudent Succession & Estate Planning Efficient tax planning Smooth distribution & transfer of assets to identified beneficiaries Dependable Trustees / Escrow agents / Managers to handle and preserve family fortune Uninterrupted management of assets Trust management & Wills Confidentiality

Business

The business of the banks was initially confined to discounting of bills of exchange or other negotiable private securities, keeping cash accounts and receiving deposits and issuing and circulating cash notes. Loans were restricted to Rs.one Lakh and the period of accommodation confined to three months only. The security for such loans was public securities, commonly called Company's Paper, bullion, treasure, plate, jewels, or goods 'not of a perishable nature' and no interest could be charged beyond a rate of twelve per cent. Loans against goods like opium, indigo, salt woollens, cotton, cotton piece goods, mule twist and silk goods were also granted but such finance by way of cash credits gained momentum only from the third decade of the nineteenth century.

All commodities, including tea, sugar and jute, which began to be financed later, were either pledged or hypothecated to the bank. Demand promissory notes were signed by the borrower in favour of the guarantor, which was in turn endorsed to the bank. Lending against shares of the banks or on the mortgage of houses, land or other real property was, however, forbidden.

Indians were the principal borrowers against deposit of Company's paper, while the business of discounts on private as well as salary bills was almost the exclusive monopoly of individuals Europeans and their partnership firms. But the main function of the three banks, as far as the government was concerned, was to help the latter raise loans from time to time and also provide a degree of stability to the prices of government securities.

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In 1951, when the First Five Year Plan was launched, the development of rural India was given the highest priority. The commercial banks of the country including the Imperial Bank of India had till then confined their operations to the urban sector and were not equipped to respond to the emergent needs of economic regeneration of the rural areas. In order, therefore, to serve the economy in general and the rural sector in particular, the All India Rural Credit Survey Committee recommended the creation of a state-partnered and state-sponsored bank by taking over the Imperial Bank of India, and integrating with it, the former state-owned or state-associate banks. An act was accordingly passed in Parliament in May 1955 and the State Bank of India was constituted on 1 July 1955. More than a quarter of the resources of the Indian banking system thus passed under the direct control of the State. Later, the State Bank of India (Subsidiary Banks) Act was passed in 1959, enabling the State Bank of India to take over eight former State-associated banks as its subsidiaries (later named Associates).

The State Bank of India was thus born with a new sense of social purpose aided by the 480 offices comprising branches, sub offices and three Local Head Offices inherited from the Imperial Bank. The concept of banking as mere repositories of the community's savings and lenders to creditworthy parties was soon to give way to the concept of purposeful banking subserving the growing and diversified financial needs of planned economic development. The State Bank of India was destined to act as the pacesetter in this respect and lead the Indian banking system into the exciting field of national development.

Competitors and other players in the field:-

Top Performing Public Sector Banks

HDFC BANK Bank

Andhra Bank

Allahabad Bank

Bank of Baroda

Bank of India

Punjab National Bank

Top Performing Private Sector Banks

ICICI Bank

AXIS Bank

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Kotak Mahindra Bank

Yes Bank

Top Performing Foreign Banks

Citibank

Standard Chartered

HSBC Bank

ABN AMRO Bank

American Express

DIFFERENT PRODUCTS OF HDFC Bank:DEPOSIT LOANS CARDS DIFFERENT CREDIT

CARDS Savings

Account Home

Loans Consumer

Cards HDFC International

cards

Life Plus Senior Citizens Savings Account

Loan Against Property

Credit Card HDFC Gold cards

 Fixed Deposits

Personal Loans

 Travel Card HDFC Gold Master cards

Security

Deposits

Car Loan Debit Cards Your City Your Cards

Recurring Deposits

Loans against Securities

Commercial Cards

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Tax-Saver Fixed Deposit

Two Wheeler

Corporate Cards

Partnership Cards

Salary Account Pre-approved Loans

Prepaid Card

Advantage WomanSavings Account

Retail Asset Purchase Card HDFC Employee Cards

Rural Savings Account

 Farmer Finance

Distribution Cards

People's Savings Account

Business Installment     Loans

Business Card HDFC Advantage Cards

 Freedom Savings Account

Flexi Cash Merchant Services

Awards & Winnings

HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian Bank". We realised 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.

It is extremely gratifying that our efforts towards providing customer convenience have been appreciated both nationally and internationally.

2012

UTI Mutual Fund CNBC TV 18 Financial Advisor Awards 2011

- Best Performing Bank - Private

Asian Banker International Excellence in Retail Financial Services Awards 2012

- Best Retail Bank in India- Best Bancassurance- Best Risk Management

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5th Loyalty Summit award

Customer and Brand Loyalty

Skoch foundation 2012

SHG/JLG linkage programme

ICAI Awards 2011 Excellence in Financial Reporting

2011

Outlook Money Best Bank Award 2011

- Best Bank - Runner Up

Best Commercial Vehicle Financier

- Driving Positive Change

Businessworld Best Bank award

- Best Bank

BCI Continuity & Resilience Award

- Most Effective Recovery of the Year

Financial Express Best Bank Survey 2010-11

- Best in Strength and Soundness - 2nd Best in the Private Sector

CNBC TV18's Best Bank & Financial Institution Awards

- Best Bank- Mr. Aditya Puri, Outstanding Finance Professional

Dun & Bradstreet Banking Awards 2011

Best Private Sector Bank - SME Financing

ISACA 2011 award for IT Governance

Best practices in IT Governance and IT Security

IBA Productivity Excellence Awards 2011

New Channel Adopter (Private Sector)

DSCI (Data Security Council of India) Excellence Awards 2011

Security in Bank

Euromoney Awards for Excellence 2011

Best Bank in India

FINANCE ASIA Country Awards 2011: India

- BEST BANK- BEST CASH MANAGEMENT BANK- BEST TRADE FINANCE BANK

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Asian Banker Strongest Bank in Asia Pacific

BloombergUTV's Financial Leadership Awards 2011

Best Bank

IBA Banking Technology Awards 2010

Winner -1) Technology Bank of the Year2) Best Online Bank3) Best Customer Initiative4) Best Use of Business Intelligence5) Best Risk Management SystemRunners Up - Best Financial Inclusion

IDC FIIA Awards 2011

Excellence in Customer Experience

2010

Outlook Money 2010 Awards

Best Bank

Businessworld Best Bank Awards 2010

Best Bank (Large)

Teacher's Achievement Awards 2010 (Business)

Mr. Aditya Puri

The Banker and PWM 2010 Global Private Banking Awards

Best Private Bank in India

Economic Times Awards for Corporate Excellence 2010

Business Leader of the Year - Mr. Aditya Puri

Forbes Asia Fab 50 Companies - 5th year in a row

NDTV Business Leadership Awards 2010

Best Private Sector Bank

The Banker Magazine

World's Top 1000 Banks

MIS Asia IT BEST BOTTOM-LINE I.T. Category

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Excellence Award 2010

Dun & Bradstreet Banking Awards 2010

Overall Best Bank Best Private Sector Bank Best Private Sector Bank in SME Financing

Institutional Investor Magazine Poll

HDFC Bank MD, Mr. Aditya Puri among "Asian Captains of Finance 2010"

IDRBT Technology 2009 Awards

Winner - 1) IT Infrastructure 2) Use of IT within the Bank Runners-up - IT Governance (Large Banks)

ACI Excellence Awards 2010

Highly Commended - Asia Pacific HDFC Bank

FE-EVI Green Business Leadership Award

Best performer in the Banking category

Celent's 2010 Banking Innovation Award

Model Bank Award

Avaya Global Connect 2010

Customer Responsiveness Award - Banking & Financial Services category

Forbes Top 2000 Companies

Our Bank at 632nd position and among 130 Global High Performers

Financial Express - Ernst & Young Survey 2009-10

Best New Private Sector Bank Best in Growth Best in strength

Asian Banker Excellence Awards 2010

Best Retail Bank in India Excellence in Automobile Lending Best M&A Integration Technology Implementation

The Asset Triple A Awards

Best Cash Management Bank in India

Euromoney Private Banking and Wealth Management Poll 2010

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

Financial Insights Innovation Awards

Innovation in Branch Operations - Server Consolidation Project

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2010

Global Finance Award

Best Trade Finance Provider in India for 2010

2 Banking Technology Awards 2009

1) Best Risk Management Initiative and 2) 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

Project Study: Retail Asset Products of HDFC Bank:

Now a day’s not all the people have the capacity to fulfill their requirement by their own earning, that’s why they need help from others. For this the government & private sector bank provide them with money to fulfill their requirement, which is called as the Retail Credit Products (loan products) of the bank. Banks have so many different types of retail credit products as per the requirement of the people or customers. HDFC Bank also provide loan to the people for different causes.

Types of Retail Asset/Credit Products

Home Loan Educational Loan Car Loan Personal Loan Property Loan Loan Against Shares\Debentures, etc

HDFC Home Loans: Purpose

Purchase/ Construction of House/ Flat

Purchase of a plot of land for construction of House

Extension/ repair/ renovation/ alteration of an existing House/ Flat

Purchase of Furnishings and Consumer Durables as a part of the project cost.

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Takeover of an existing loan from other Banks/ Housing Finance Companies.

Eligibility

Minimum age 18 years as on the date of sanction

Maximum age limit for a Home Loan borrower is fixed at 70 years, i.e. the age by which the loan should be fully repaid.

Availability of sufficient, regular and continuous source of income for servicing the loan repayment.

Loan Amount

40 to 60 times of Net Monthly Income (NMI), depending on repayment capacity as % of NMI as under –

 Net Annual Income EMI/NMI Ratio Upto Rs.2 lacs  40% Above Rs.2 lac to Rs. 5 lacs  50% Above Rs. 5 lacs  55%

To enhance loan eligibility you have option to add:

1. Income of your spouse/ your son/ daughter living with you, provided they have a steady income and his/ her salary account is maintained with HDFC BANK.2. Expected rent accruals (less taxes, cess, etc.) if the house/ flat being purchased is proposed to be rented out.3. Depreciation, subject to some conditions.4. Regular income from all sources

Margin (Special Festival Season Offer)

Purchase/ Construction of a new House/ Flat/ Plot of land: 15% for loans up to Rs. 1 cr., 20% for loans above Rs. 1 cr.

Repairs/ Renovation of an existing House/ Flat: 15%

Interest Rates w.e.f 31.3.2012

HOME LOANS - INTEREST RATESAll Rate are floating only

(Base Rate= 10.00% p.a.) 

Loan Amount

Linkage with Base Rate over the tenor

of the loan

Effective Rate

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Upto Rs. 30.00 lacs

0.75% above Base Rate

10.75% p.a.*

Above Rs. 30.00 lacs and upto Rs. 75.00 lacs

1.00% above Base Rate

11.00% p.a.*

Above Rs. 75.00 lacs

1.25% above Base Rate

11.25% p.a.*

No fixed rate option in any limit bracket. 

CAR LOAN:Purpose

You can take finance for:

A new car, jeep or Multi Utility Vehicles (MUVs)

A used car / jeep (not more than 5 years old). (Any make or model).

Take over of existing loan from other Bank/Financial institution (Conditions apply)

Eligibility

To avail an HDFC Bank Car Loan, you should be :

Individual between the age of 21-65 years of age. A Permanent employee of State / Central Government, Public Sector Undertaking, Private

company or a reputed establishment or A Professionals or self-employed individual who is an income tax assessee or A Person engaged in agriculture and allied activities. Net Annual Income Rs. 100,000/- and above.

Salient Features 

Loan Amount

There is no upper limit for the amount of a car loan. A maximum loan amount of 2.5 times the net annual income can be sanctioned. If married, your spouse's income could also be considered provided the spouse becomes a co-borrower in the loan. The loan amount includes finance for one-time road tax, registration and insurance! No ceiling on the loan amount for new cars. Loan amount for used car is subject to a maximum limit of Rs. 15 lacs.

Type of Loan1. Term Loan 

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2. Overdraft - a) For New vehicles only                     b) Minimum loan amount: Rs. 3 lacs.

Repayment

You enjoy the longest repayment period in the industry with us. Repayment period:For Salaried:                               Maximum of 84 monthsFor Self-employed & Professionals:  Maximum 60 months

Repayment period for used vehicles :Up to 84 months from the date of original purchase of the vehicle (subject to maximum tenure as above).

Documents required

you would need to submit the following documents along with the completed application form if you are an existing HDFC BANK account holder:

1. Statement of Bank account of the borrower for last 12 months. 2. 2 passport size photographs of borrower(s). 3. Signature identification from bankers of borrower(s). 4. A copy of passport /voters ID card/PAN card. 5. Proof of residence. 6. Latest salary-slip showing all deductions 7. I.T. Returns/Form 16: 2 years for salaried employees and 3 years for professional/self-

employed/businessmen duly accepted by the ITO wherever applicable to be submitted. 8. Proof of official address for non-salaried individuals.

If you are not an account holder with HDFC BANK you would also need to furnish documents that establish your identity and give proof of residence.

Margin

New / Used vehicles: 15% of the on the road price.

Prepayment Penalty:

Prepayment fee of 2% of the amount of the loan prepaid will be levied subject to certain conditions

FLOATING RATES:  Interest Rates w.e.f. 23.04.2012 (Base Rate 10 % p.a.)  

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HDFC BANK CAR LOAN SCHEMETenure Rate of Interest

For all tenures

For Term Loan:1.25% above Base Rate, i.e. 11.25% p.a.For Overdraft:1.75% above Base Rate, i.e. 11.75% p.a.

  NRI Car Loan Tenure Rate of InterestFor all tenures 1.25% above Base Rate i.e. 11.25%

p.a. 

 Two- Wheeler Loan  Tenure Rate of InterestUp to 3 years 8.25% above Base Rate i.e. 18.25%

p.a. 

 Used Vehicles Tenure Rate of InterestUp to 3 years 7.25% above Base Rate i.e. 17.25%

p.a.Above 3 yrs 7.50% above Base Rate i.e. 17.50%

p.a.  Certified Pre-owned Car Loan scheme  Tenure Rate of InterestUp to 3 years 6.00% above Base Rate i.e. 16.00%

p.a.Above 3 yrs 6.50% above Base Rate i.e. 16.50%

p.a. NOTE: ALL INTEREST RATES ARE SUBJECT TO CHANGE, WITHOUT NOTICE 

EDUCATION LOAN:A term loan granted to Indian Nationals for pursuing higher education in India or abroad where admission has been secured.

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Eligible Courses

All courses having employment prospects are eligible.

Graduation courses/ Post graduation courses/ Professional courses Other courses approved by UGC/Government/AICTE etc.

Expenses considered for loan

Fees payable to college/school/hostel Examination/Library/Laboratory fees Purchase of Books/Equipment/Instruments/Uniforms Caution Deposit/Building Fund/Refundable Deposit (maximum 10% tution fees for the entire

course)  Travel Expenses/Passage money for studies abroad Purchase of computers considered necessary for completion of course Cost of a Two-wheeler upto Rs. 100,000/-

Any other expenses required to complete the course like study tours, project work etc.

Amount of Loan

For studies in India, maximum Rs. 10 lacs Studies abroad, maximum Rs. 20 lacs

Processing Fees

No processing fee/ upfront charges Deposit of Rs. 5000/- for education loan for studies abroad which will be adjusted in the margin

money

Repayment Tenure

Repayment will commence one year after completion of course or 6 months after securing a job, whichever is earlier.

Place of Study Loan Amount Repayment in PeriodYears

Studies in India Rs. 10.0 lacs 5-7

Studies Abroad Rs. 20.0 lacs 5-7

Security

Amount For loans upto Rs. 10.00 lacs for Studies inIndia and upto Rs. 20.00 lacs for studies abroad

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Upto Rs. 4 lacs No Security

Above Rs. 4 lacs to Rs. 7.50 lacs Collateral security in the form of suitable third partyGuarantee. The bank may, at its discretion, inexceptional cases, weive third party guarantee ifsatisfied with the net-worth/means of parent/s whowould be executing the documents as "jointborrower"

Above Rs. 7.50 lacs. Tangible collateral security of suitable value, alongwith the assignment of future income of the studentFor payment of installments.

All loans should be secured by parent(s)/guardian of the student borrower. In case of married person, co-obligator can be either spouse or the parent(s)/ parents-in-law

Margin

For loans up to Rs.4.0 lacs : No Margin For loans above Rs.4.0 lacs:

o Studies in India: 5% o Studies Abroad: 15%

Documentation Required

Completed Education Loan Application Form. Mark sheets of last qualifying examination Proof of admission scholarship, studentship etc Schedule of expenses for the specified course 2 passport size photographs Borrower's Bank account statement for the last six months Income tax assessment order, of last 2 years Brief statement of assets and liabilities, of the Co-borrower Proof of Income (i.e. Salary slips/ Form 16 etc)

Interest Rates Applicable:

Base Rate 10% w.e.f. 13.08.2011  EDUCATION LOAN  HDFC BANK Student Loan Scheme Loan Amount  Rate of Interest (w.e.f.

27.02.2012)

For loans upto Rs.4 lacs 350 bps above Base Rate, currently 13.50% p.a.

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Above Rs.4 lacs and upto Rs.7.50 lacs

325 bps above Base Rate, currently 13.25% p.a.

Above Rs.7.50 lacs 200 bps above Base Rate, currently 12.00% p.a.

0.50% concession in interest for girl student

1% concession for full tenure of the loan, if  interest is serviced promptly as and when applied during the moratorium period (including course duration)

 HDFC BANK Scholar Loan Scheme (w.e.f. 27.02.2012)

200 bps above Base Rate, currently 12.00% p.a.

  (Irrespective of the loan amount)

  0.50% concession in interest for girl student

1% concession for full tenure of the loan, if interest is serviced promptly as and when applied during the moratorium period (including course duration)

    NOTE: ALL INTEREST RATES ARE SUBJECT TO CHANGE, WITHOUT NOTICE.

HDFC Bank PERSONAL LOAN: PurposeThe loan will be granted for any legitimate purpose whatsoever (e.g. expenses for domestic or foreign travel, medical treatment of self or a family member, meeting any financial liability, such as marriage of son/daughter, defraying educational expenses of wards, meeting margins for purchase of assets etc.)

EligibilityYou are eligible if you are a Salaried individual of good quality corporate, self employed engineer, doctor, architect, chartered accountant, MBA with minimum 2 years standing.    

Salient Features Loan AmountYour personal loan limit would be determined by your income and repayment capacity. Minimum: Rs.24,000/- in metro and urban centresRs.10, 000/- in rural/semi-urban centres

Maximum: 12 times Net Monthly Income for salaried individuals and pensioners  subject to a ceiling of Rs.10 lacs in all centres

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Documents RequiredImportant documents to be furnished while opening a Personal Loan Account:

For existing bank customersPassport size photograph

From salaried individuals Latest salary slip and Form 16

MarginWe do not insist on any margin amount.

Interest Rates

PERSONAL LOAN AGAINST THIRD PARTY SECURITY

Base Rate 10.00 % w.e.f. 13.08.2011

Loans against NSCs/KVPs/RBI Relief Bonds/

Surrender Value of HDFC BANK Life /LIC/HDFC BANK Magnums, etc.

Tenure Rate of InterestUpto 3 years 4.50% above Base Rate,

currently 14.50% p.a.More than 3 years and below 6 years

4.50% above Base Rate, currently 14.50% p.a.

 

Repayment The loan is repayable in 48 EMI. You are allowed to pay more than the EMI if you wish to, without attracting any prepayment penalty.

SecurityNIL

Processing Fee Processing charges are 1-2% of the loan amount. This is amongst the lowest fees in the industry. Processing fees have to be paid upfront. There are no hidden costs or other administrative charges.

LOAN Against Property, Gold ornaments:Purpose This is an all purpose loan, i.e., the loan can be obtained for any purpose whatsoever. If amount of loan is Rs.25.00 lacs and above then purpose of loan will have to be specified along with an undertaking that loan will not be used for any speculative purpose whatever including speculation on real estate and equity shares. 

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EligibilityYou are eligible if you are:

A. An individual who is; a. An Employee or b. A Professional, self-employed or an income tax assesse or c. Engaged in agricultural and allied activities.

B. Your Net Monthly Income (salaried) is in excess of Rs.12,000/- or Net Annual Income (others) is in excess of Rs.1,50,000/-.

The income of the spouse may be added if he/she is a co-borrower or a guarantor.

C. Maximum age limit: 60 years.

Salient Features

Loan Amount

Minimum: Rs.25, 000/- Maximum: Rs.1 crore. The amount is decided by the following calculation:

24 times the net monthly income of salaried persons (Net of all deductions including TDS) OR 2 times the net annual income of others (income as per latest IT return less taxes payable)

MarginWe will finance upto 75% of the market value of your property.

RepaymentMaximum of 60 equated monthly installments, upto 120 months for salaried individuals with check-off facility. You could opt to divert any surplus funds towards prepayment of the loan without attracting any penalty.

Security

As per banks extant instructions.

Interest Rates:

LOANS AGAINST GOLD ORNAMENTS, MORTGAGE OF PROPERTY

Base Rate 10.00 % w.e.f. 13.08.2011

Loan against Gold Ornaments

Size of Credit Limit Rate of InterestUpto Rs. 1,00,000/- 4.25% above Base Rate

Floating, currently 14.25%

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p.a.Above Rs. 1,00,000/- 4.75% above Base Rate

Floating, currently 14.75% p.a.

 

Loan against Mortgage of Immovable Property

Size of Credit Limit(Term Loan)

Rate of Interest

Upto Rs. 1,00,00,000/- 5.25% above Base Rate Floating, currently 15.25% p.a.

Above Rs. 1,00,00,000/- 5.50% above Base Rate Floating, currently 15.50% p.a.

*No Overdraft against Mortgage of Property 

NOTE: ALL INTEREST RATES ARE SUBJECT TO CHANGE, WITHOUT NOTICE.

LOAN AGAINST SHARES \ DEBENTURES:Eligibility This facility is available to our existing individual customers enjoying a strong relationship with HDFC BANK. This loan could be availed either singly or as a joint account with spouse in 'Either or Survivor'/ 'Former or Survivor' mode. It is offered as an Overdraft or Demand Loan.

The facility is available at 50 select centers.

Salient Features:PurposeFor meeting contingencies and needs of personal nature. Loan will be permitted for subscribing to rights or new issue of shares / debentures against the security of existing shares / debentures. Loan will not be sanctioned for (i) speculative purposes (ii) inter-corporate investments or (iii) acquiring controlling interest in company / companies.Loan Amount You can avail of loans up to Rs 20.00 lacs against your shares/debentures.

Documents Required You will be required to submit a declaration indicating:

Details of loans availed from other banks/ branches for acquiring shares/ debentures. Details of loans availed from other banks/ branches against security of shares/ debentures 

MarginYou will need to provide a margin amount of 50% of the prevailing market prices of the shares/ non-convertible debentures being offered as security. (The market prices refer to the prices in the Stock Exchanges as reported in the Economic Times.)

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Repayment Schedule To be liquidated in maximum period of 30 months through a suitable reducing DP programme.

In case of a default or if the outstanding is over Rs.20.00 lacs, the shares/debentures will be transferred in the name of the Bank.

Security: Pledge of the demat shares/debentures against which overdraft is granted.

Interest Rates:

LOANS AGAINST SHARES / DEBENTURES / BONDS

Base Rate 10.00 % w.e.f. 13.08.2011 

Loans against Shares / Debentures / Bonds

ConclusionHDFC BANK is in 1st position having large number of customers & providing good services to them.

The bank has a wide customer base, so the bank should concentrate on this to retain these customers.

In present scenario HDFC BANK is the largest credit product issuer in India. Within a very short period

of time the achievement made by HDFC BANK is excellent, what a normal bank cannot expect, but it is

being done by HDFC BANK. It happens due to employee dedication towards the organization, fastest

growing Indian economy, & brand image.

To be the largest credit & advance product issuer, HDFC BANK should focus on-

Launch Innovative product

Customized advance products

Better customer services

Fastest customers problem solving techniques

Customer retention

Apart from all the above, HDFC BANK believe in providing good customer services to their customers

which is a key factor for success in future.

Bibliography and References

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Sceme Rate of InterestEquity Plus Scheme 6.50% above Base Rate,

currently 16.50% p.a.

https://www.hdfcbank.com/user.htm

http://en.wikipedia.org/wiki/HDFC_Bank

http://www.iba.org.in/viewmembanks.asp?id=2

http://economictimes.indiatimes.com/Banking/articleshow/

6434466.cms

http://indiatoday.intoday.in/

http://www.forbes.com/2009/05/06/world-reputable-

companies-leadership-reputation-table.html

http://business.rediff.com/slide-show/2010/oct/26/slide-show-

1-tata-motors-is-indias-top-brand.htm

http://en.wikipedia.org/wiki/Big_Four_(banks)

http://www.cmlinks.com/sbi/NewsText.asp?

Code=1375&period=1001&srno=9172002038

http://en.wikipedia.org/wiki/List_of_companies_of_India

http://en.wikipedia.org/wiki/List_of_banks_in_India

http://en.wikipedia.org/wiki/Fortune_India_500

http://en.wikipedia.org/wiki/Fortune_Global_500

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