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It is the process of imparting of specific skills for doing a particular job. It is also planned program design to improve peformance & bring about measurable changes in knowledge, skills, attitudes, social, behavior of the employees.

1. Organizational objectives and strategies-the first step in the training process in the organization is the assessment of its objectives and strategies at what level of quality do we wish to provide services & where do we want to be in the future.

2 2. Assessment of training need-need assessment identifying present problem & future challenges to be complete through training , organization spend vast sum of money on training , before commitment such use resources organization would do well to assess the training need of their employees. 3. Establishment of training goal-without clear set goal it is not possible to design a training program. Goal must be tangible , verifiable, & measurable. 4. Designing training program-every training must address certain issue-who participate in the training program. who are the trainers -what method & techniques are to be used for training -what learning principles are needed 5. Implementation of training program-once the training program has been designed it needs to be implemented , by using following tips -deciding the location and organizing training and other facilities -scheduling the training program -conducting the program -monitors the program of trainees 6. Evaluation of result-the last stage in the training process is evaluation of result . Since use sums of money are spent on training , how far the program has been useful must be determine.

========== Technology ====== Rain forcing ====== Activating ====== Inducing ====== Nurturing/group/efforts ====== Inspiring for initiation ====== No to on conversion ====== Generating new thinking

1. optimum utilization of existing resources and enhancing productivity. 2. Bridge the skill gap function & managerial arising from career growth & technological advancements. 3. Develop multi skilled work force for over all business perspective process orientation & flexibility in there development. 4. Nature talent to develop leadership across all levels of the organization. 5. provide multiple learning opportunities to employees & help them realize their full potential 6. Prepare the organization to anticipate &lead change. 7.Promote the work ethos, which emphasize performance orientation, participation, & innovation. Management is committed to provide opportunities to all employees, time &resources to the develop their full potential.

;-To get a practical knowledge of Banking service. ;-To analyze the patty cash & pass out daily expenses entry . ;-To analyze the cheque, fund transfer, RTGS & payment.

;-To getting some thing knowledge about devid card, credit card, phonebanking& net-banking. ;-To analyze the banking soft-ware. ;- To analyze the customer requirement planning procedure. ;- To analyze the current procedure of banking in India.

History of hdfc Bank

Housing Development Finance Corporation Limited, more popularly known as HDFC Bank Ltd, was established in the year 1994, as a part of the liberalization of the Indian Banking Industry by Reserve Bank of India (RBI). It was one of the first banks to receive an 'in principle' approval from RBI, for setting up a bank in the private sector. The bank was incorporated with the name 'HDFC Bank Limited', with its registered office in Mumbai. The following year, it started its operations as a

Scheduled Commercial Bank. Today, the bank boasts of as many as 1412 branches and over 3275 ATMs across India.

In 2002, HDFC Bank witnessed its merger with Times Bank Limited (a private sector bank promoted by Bennett, Coleman & Co. / Times Group). With this, HDFC and Times became the first two private banks in the New Generation Private Sector Banks to have gone through a merger. In 2008, RBI approved the amalgamation of Centurion Bank of Punjab with HDFC Bank. With this, the Deposits of the merged entity became Rs. 1,22,000 crore, while the Advances were Rs. 89,000 crore and Balance Sheet size was Rs. 1,63,000 crore

Capital Structure
At present, HDFC Bank boasts of an authorized capital of Rs 550 crore (Rs5.5 billion), of this the paid-up amount is Rs 424.6 crore (Rs.4.2 billion). In terms of equity share, the HDFC Group holds 19.4%. Foreign Institutional Investors (FIIs) have around 28% of the equity and about 17.6% is held by the ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue). The bank has about 570,000 shareholders. Its shares find a listing on the Stock Exchange, Mumbai and National Stock Exchange, while its American Depository Shares are listed on the New York Stock Exchange (NYSE), under the symbol 'HDB'.

HDFC Bank has always prided itself on a highly automated environment, be it in terms of information technology or communication systems. All the braches of the bank boast of online connectivity with the other, ensuring speedy funds transfer for the clients. At the same time, the bank's branch network and Automated Teller Machines (ATMs) allow multi-branch access to retail clients. The bank makes use of its up-todate technology, along with market position and expertise, to create a competitive advantage and build market share

Business Summary
HDFC Bank Limited provides various financial products and services. It operates in three segments: Retail Banking, Wholesale Banking, and Treasury. The Retail Banking segment provides various deposit products, including savings accounts, current accounts, fixed deposits, and demat accounts. It also offers auto, personal, commercial vehicle, home, gold, and educational loans; loans against securities, property, and rental receivables; and health care finance working capital finance, construction equipment finance, and warehouse receipt loans, as well as credit cards, debit cards, depository, investment advisory, bill payments, and transactional services. In addition, this segment sells third party financial products, such as

8 mutual funds and insurance, as well as distributes life and general insurance products through its tie-ups with insurance companies and mutual fund houses. The wholesale banking segment provides loans, non-fund facilities, and transaction services to large corporate, emerging corporate, small and medium enterprise, supply chain, public sector undertaking, central and state government departments, and institutional customers. It offers deposit and transaction banking products, supply chain financing, working capital and term finance, agricultural loans, and funded, non-funded treasury, and foreign exchange products. This segments services include trade services, cash management, money market, custodial, tax collection, and electronic banking. In addition, it provides correspondent bank services to co-operative banks, private banks, foreign banks, and regional rural banks; and wealth management products for non-resident Indians. The Treasury Services segment operates primarily in areas, such as foreign exchange, money market, interest rate trading, and equities. As of March 31, 2009, HDFC Bank had a network of 1,412 branches and 3,295 automated teller machines in 528 cities in India. The company was founded in 1994 based in Mumbai, India and is


Our mission is to be a World Class Indian Bank, benchmarking ourselves against international standards and best practices in terms of product offerings, technology, service levels, risk management and audit & compliance. The objective is to build sound customer franchises across distinct businesses so as to be a preferred provider of banking services for target retail and wholesale customer segments, and to

achieve a healthy growth in profitability, consistent with the Banks risk appetite. We are committed to do this while ensuring the highest levels of ethical standards, professional integrity, corporate governance and regulatory compliance.

By 2010 we will enable economics and social changes. increasing to branch in over all India, and development to banking structure and financial service. Setup to global business environment

bank is an institution which trades in money establishment further deposit, custody and issue of money as also for making loans and discount and facilitating the transmission of remittance from one place to another Banking means the accepting or the purpose of lending and investment of deposit of money from the public, repayable on demand or otherwise and withdrawal by cheque, draft, order or otherwise.


Function of commercial Bank

The Function of commercial bank can be divided in to three parts such as fallows ; (1)Main function The main function of any commercial bank is follows Accepting deposit Giving of loan

(2)Agency function

Collection of cheque , bills etc. Payments of cheque & bills Collection of payments Other payments on behalf of customer Fund transfer Buying and selling share and securities for there customer Under writing Financial advisor Acting as trustees etc.

Other general utility function Custody of movable property Providing foreign exchange
Providing consumer credit Facility of travelers cheque and letters of credit Training facilities Collection and publication of banking statistics


Important of banking
Formation of capital
Utilization of national wealth Economic development Improvement in standard of living Progress of business Security of valuable Customer service Creation of credit Evaluation of economic situation Aid to state Elasticity in monetary system Balancing the supply of resources Use of credit investment

Organizational Structure
Top management

Mr. Jagdish Capoor Mr. Aditya Puri


Mr. Keki M. Mistry Mrs. Renu Karnad Mr. Arvind Pande Mr. Ashim Samanta Mr. C M Vasudev Mr. Gautam Divan Dr. Pandit Palande Mr. Paresh Sukthankar Mr. Harish Engineer Mr.Jagdish Capoor()

Mr. Jagdish Capoor holds a Masters degree in Commerce and is a Fellow member of Indian Institute of Banking and Finance. Prior to joining the Bank, Mr. Capoor was the Deputy Governor of the Reserve Bank of India. He retired as Deputy Governor of Reserve Bank of India after serving for 39 years. While with Reserve Bank of India, Mr. Capoor was the Chairman of the Deposit Insurance and Credit Guarantee Corporation of India and Bharatiya Reserve Bank Note Mudran Limited. He also served on the boards of Export Import Bank of India, National Housing Bank, National Bank for Agriculture and Rural Development (NABARD) and State Bank of India. Mr. Capoor is on the Boards of the Indian Hotels Company Limited, Bombay Stock Exchange Limited, GHCL Limited, LIC Pension Fund Limited, Assets Care Enterprise Limited and Quantum Trustee Co. Pvt. Ltd. He is a member of the Board of Governors of the Indian Institute of Management, Indore. Mr. Capoor is a Trustee of The Stock Exchange Investors' Protection Fund and Sumati Capoor Charitable Trust. Mr. Capoor is a member of the Audit Committees of Indian Hotels Company Limited, GHCL Limited and Quantum Trustee Co. Pvt. Ltd. He is chairman of Share Allotment and Shareholders Grievance Committee of Bombay Stock Exchange Limited. Mr. Capoor holds 300 equity shares in the Bank as on March 31, 2008.

Aditya puri(M.D.)


Mr. Aditya Puri holds a Bachelors degree in Commerce from Punjab University and is an associate member of the Institute of Chartered Accountants of India. Mr. Aditya Puri has been the Managing Director of the Bank since September 1994. He has about 35 years of banking experience in India and abroad. Prior to joining the Bank, Mr. Puri was the Chief Executive Officer of Citibank, Malaysia from 1992 to 1994. Mr. Puri holds 3, 37,953 equity shares in the Bank as on March 31, 2008.

Mr.Keki Mistry(Vice chairman&Managing Director) K.

Mr. Keki Mistry holds a Bachelor of Commerce degree in Advanced Accountancy and Auditing and is also a Chartered Accountant. He was actively involved in the setting up of several HDFC group companies including HDFC Bank. Mr. Mistry has been deputed on consultancy assignments for the Commonwealth Development Corporation (CDC) in Thailand, Mauritius, Caribbean Islands and Jamaica. He has also worked as a consultant for the Mauritius Housing Company and Asian Development Bank. Mr. Mistry is Vice Chairman & Managing Director of Housing Development Finance Corporation Limited and Chairman of GRUH Finance Limited. He is also a Director on the Board of HDFC Developers Limited, HDFC Standard Life Insurance Co. Ltd, HDFC General Insurance Company Limited, Infrastructure Leasing & Financial Services Limited, Sun Pharmaceutical Industries Limited, The Great Eastern Shipping Company Limited, NexGen Publishing Limited, India Value Fund Advisors Private Limited, HDFC Asset Management Company Limited, Great ship (India) Limited, Griha Investments-Mauritius and Association of Leasing & Financial Services Companies. Mr. Mistry is the Chairman of the Audit Committee of HDFC General Insurance Company Limited, Sun Pharmaceutical Industries Limited and The Great Eastern Shipping Company Limited. He is member of Audit Committee of HDFC Standard Life Insurance Company Limited, Gruh Finance Limited, Infrastructure Leasing & Financial Services Limited and HDFC Asset Management Company Limited. He is also a member of Investors Grievance Committee of Housing Development Finance Corporation Limited, Remuneration Committee and Investment Committee of Gruh Finance Limited and Share Transfer Committee of Infrastructure Leasing & Financial Services Limited. Mr. Mistry is liable to retire by rotation and being eligible, offers himself for re-appointment at the ensuing Annual General Meeting.

Mrs.Renu Karnad(Join Managing Director)

Mrs. Renu Karnad is a Law graduate and also holds a Masters Degree in Economics from Delhi University. Mrs. Karnad is a Joint Managing Director of Housing Development Finance Corporation Limited and Chairperson of HDFC Venture Capital Limited, HDFC Property Ventures Limited and Home Loan Services India Private Limited. She is a Director of HDFC Asset Management Company Limited, GRUH Finance Limited, HDFC Realty Limited, Credit Information Bureau (India) Limited, HDFC General Insurance Company Limited, ICI India Limited, Indraprastha Medical Corporation Limited, HDFC

Standard Life Insurance Company Limited, Sparsh BPO Services Limited, Mother Dairy Fruits & Vegetables Private Limited, Feedback Ventures Private Limited, Motor Industries Co. Limited, Egyptian Housing Finance Company and Ascendas Pte. Limited, Singapore. Mrs. Karnad is a member of the Managing Committee of Indian Cancer Society and Vice Chairperson of the Governing Council of Indraprastha Cancer Society & Research Centre. Mrs. Karnad is Chairperson of the Audit Committee of ICI India Limited, Credit Information Bureau (India) Limited, Motor Industries Co. Limited and Mother Diary Fruits & Vegetables Private Limited. She is a member of the Audit Committee of HDFC General Insurance Company Limited. She is the Chairperson of the Remuneration Committee of ICI India Limited. She is also the member of Investment Committee, Compensation Committee, Compensation-ESOS Committee and Committee of Directors of Gruh Finance Limited; Customer Service Committee and Risk Management Committee of HDFC Asset Management Company Limited; Remuneration Committee of Credit Information Bureau (India) Limited and Sparsh BPO Services Limited; and Shareholders/Investors Grievance Committee, Investment Committee and Property Sub-Committee of Motor Industries Company Limited. Mrs. Karnad is liable to retire by rotation and being eligible, offers herself for re-appointment at the ensuing Annual General Meeting. Mrs. Karnad holds 58,924 equity shares in the Bank as on March 31, 2008.

Mr.Arvind Pande

Mr. Arvind Pande holds a Bachelor of Science degree from Allahabad University and a B.A. (Hons.) and M.A. (Economics) degree from Cambridge University, U.K. He started his career in Indian Administrative Services and has held various responsible positions in the Government of India. He was a Joint Secretary to the Prime Minister of India for Economics, Science and Technology issues. Mr. Pande has served as a Director, Department of Economic Affairs, Ministry of Finance, Government of India and has dealt with World Bank aided projects. Mr. Pande has also served on the Board of Steel Authority of India Limited as its Chairman and Chief Executive Officer (CEO). Mr. Pande is a Director of Coal India Limited, Bengal Aerotropolis projects Limited, Burnpur Cements Limited, Visa Steel Limited, Era Infra Engineering Limited and Sandhar Technologies Limited. He is member of the Audit Committee of Coal India Limited and Visa Steel Limited. Mr. Pande does not hold any equity shares in the Bank as on March 31, 2008.


Mr. Ashim Samanta holds a Bachelor of Commerce degree from University of Bombay and has wide and extensive experience in business for nearly 29 years. He has vast experience in the field of bulk drugs and pharmaceutical formulations. He is a Director of Samanta Organics Private Limited, Nautilus Trading & Leasing Private Limited, Ashish Rang Udyog Private Limited, Samanta Movies Private Limited and Shakti Cine Studios Private Limited. Mr. Samanta has also been engaged in setting up and running of film editing and dubbing studio.

Mr.C M Vasudev

Mr. C. M. Vasudev holds a Masters Degree in Economics and Physics. He joined the Indian Administrative Services in 1966.

Mr. Vasudev has worked as Executive Director of World Bank representing India, Bangladesh, Sri Lanka and Bhutan. Mr. Vasudev has extensive experience of working at policy making levels in the financial sector and was responsible for laying down policies and oversight of management. He chaired World Banks committee on development effectiveness with responsibility of ensuring effectiveness of World Banks operations. Mr. Vasudev has also worked as Secretary, Ministry of Finance and has undertaken various assignments viz. Secretary, Department of Economic Affairs, Department of Expenditure, Department of Banking and was Additional Secretary Budget with responsibility for framing budget of Government and monitoring its implementation. He has also worked as Joint Secretary of Ministry of Commerce with responsibility for state trading, trade policy including interface with WTO. Mr. Vasudev is Director on the Board of Directors of ICRA Management Consultancy Services Limited, NOIDA Power Company Limited and Noesis Consultancy Services Private Limited. He is a member of Audit Committee and the Chairman of Remuneration Committee of ICRA Management Consultancy Services Limited and member of Audit Committee of NOIDA Power Company Limited. Mr. Vasudev does not hold any equity shares in the Bank as on March 31, 2008.

Mr.Gautam Divan

Mr. Gautam Divan holds a Bachelors degree in Commerce and is a Fellow Member of the Institute of Chartered Accountants of India. Mr. Divan is a partner in Rahul Gautam Divan & Associates, Chartered Accountants. Mr. Divan has wide experience in financial and taxation planning of individuals and limited companies and auditing accounts of large public limited companies and nationalised Banks. Mr. Divan enjoys substantial experience in structuring overseas investments to and from India. Mr. Divan is on the Board of HDFC Standard Life Insurance Company Limited, Baltic Consultancy & Services Private Limited, Bell Ceramics Limited, Brady & Morris Engineering Company Limited, Chandanbhoy and Jassoobhoy Consultants Private Limited, Serendib Investments Private Limited and Ascent Hotels Private Limited. He is Chairman of Audit Committee and Remuneration Committee of Bell Ceramics Limited. He is the Chairman of Audit Committee of HDFC Life Insurance Company Limited. He is a partner of M/s Rahul Gautam Divan & Associates. Mr. Divan does not hold any equity shares in the Bank as on March 31, 2008.

Mr.Pandit Palande

Dr. Pandit Palande has a Ph.D. degree in Business Administration and has completed an Advance Course in Management from Oxford University and the Warwick University in UK. Dr. Palande has worked as a Director of School of Commerce and Management for 15 years in Yashwantrao Chavan Maharashtra Open University (YCMOU). At present, Dr. Palande is ProVice Chancellor of YCMOU. Dr. Palande has extensive experience of working in the fields of business administration, management and agriculture. Under the guidance of Dr. Palande, YCMOU has become one of the green universities in India. As a project Director of Indian Space Research Organisation (ISRO) GAP-3 of YCMOU, Dr. Palande has been serving the agriculture community on a large scale through satellite. Dr. Palande is neither a director on the Board of any other company nor a member and chairman of any committee(s) of the Board of Directors of any other company. Dr. Palande does not hold any equity shares in the Bank on March 31, 2008 as well as on the date of his appointment.



Mr. Paresh Sukthankar has been appointed as Executive Director of the Bank for a period of three years with effect from 12th October 2007. He has done Masters in Management Studies from Jamnalal Bajaj Institute of Management Studies, Mumbai. Mr. Sukthankar has been associated with the Bank since 1994 in various senior capacities and has direct or supervisory responsibilities for the Credit & Market Risk and Human Resources functions and for various strategic initiatives of the bank. He has over 22 years of experience in the fields of finance and banking. Prior to joining the Bank, he worked with Citibank for 9 years in various areas including corporate banking, risk management, financial control and credit administration. Mr. Sukthankar is neither a director on the Board of any other company nor a member and chairman of any committee of the Board of Directors. He holds 1,59,656 equity shares in the Bank as on March 31, 2008.

Mr.Harish Engineer

Mr. Harish Engineer has been appointed as Executive Director of the Bank for a period of three years with effect from 12th October 2007. He holds a Diploma in Business Management from Hazarimal Somani College, Mumbai. Mr. Engineer has been associated with the Bank since 1994 in various capacities and is responsible for Wholesale Banking at present. He has over 38 years experience in the fields of finance and banking. Prior to joining the Bank, he worked with Bank of America for 26 years in various areas including operations and corporate credit management. Mr. Engineer is neither a director on the Board of any other company nor a member and chairman of any committee of the Board of Directors. He is member of the Board of Boston Analytics, Boston (USA). He holds 64,000 equity shares in the Bank as on March 31, 2008

Audit and Compliance Committee

The Audit and Compliance Committee of the Bank is chaired by Mr. Arvind Pande. The other members of the Committee are Mr. Ashim Samanta, Mr. C. M. Vasudev, Mr. Gautam Divan and Dr. Pandit


Palande. Dr. Pandit Palande was inducted as member of the Committee w.e.f. May 17, 2007. All the members of the Committee are independent directors and Mr. Gautam Divan is a financial expert. The Committee met 7 (seven) times during the year. The terms of reference of the Audit Committee are in accordance with Clause 49 of the Listing Agreement entered into with the Stock Exchanges in India, and inter alia include the following: Overseeing the Bank's financial reporting process and ensuring correct, adequate and credible disclosure of financial information. Recommending appointment and removal of external auditors and fixing of their fees. Reviewing with management the annual financial statements before submission to the Board with special emphasis on accounting policies and practices, compliance with accounting standards and other legal requirements concerning financial statements. Reviewing the adequacy of the Audit and Compliance functions, including their policies, procedures, techniques and other regulatory requirements, and Any other terms of reference as may be included from time to time in clause 49 of the listing agreement. The Board has also adopted a charter for the audit committee in connection with certain United States regulatory standards as the Bank's securities are also listed on New York Stock Exchange.

Compensation Committee


The Compensation Committee reviews the overall compensation structure and policies of the Bank with a view to attract, retain and motivate employees, consider grant of stock options to employees, reviewing compensation levels of the Bank's employees vis--vis other banks and industry in general. The Bank's compensation policy is to provide a fair and consistent basis for motivating and rewarding employees appropriately according to their job / role size, performance, contribution, skill and competence. Mr. Jagdish Capoor, Mr. Ashim Samanta, Mr. Gautam Divan and Dr. Pandit Palande are the members of the Committee. Dr. Pandit Palande was inducted as member of the Committee w.e.f. May 17, 2007. The Committee is chaired by Mr. Jagdish Capoor. All members of the Committee other than Mr. Capoor are independent directors. The Committee met 3 (three) times during the year.

Committee Investors' Grievance (SHARE)

The Committee approves and monitors transfer, transmission, splitting and consolidation of shares and bonds and allotment of shares to the employees pursuant to Employees Stock Option Scheme. The Committee also monitors redressal of complaints from shareholders relating to transfer of shares, non-receipt of Annual Report, dividends etc. The Committee consists of Mr. Jagdish Capoor, Mr. Aditya Puri and Mr. Gautam Divan. The Committee is chaired by Mr. Capoor. The


Committee met 11 times during the year. The powers to approve share transfers and dematerialization requests have been delegated to executives of the Bank to avoid delays that may arise due to nonavailability of the members of the Committee. As on March 31, 2008, 43 instruments of transfer representing 3871 shares were pending and since then the same have been processed. The details of the transfers are reported to the Board of Directors from time to time. During the year, the Bank received 142 complaints from shareholders, which have been attended to. The Committee met 11 (eleven) times during the year.

Risk Monitoring Committee

The committee has been formed as per the guidelines of Reserve Bank of India on the Asset Liability Management / Risk Management Systems. The Committee develops Bank's credit and market risk policies and procedures, verify adherence to various risk parameters and prudential limits for treasury operations and reviews its risk monitoring system. The committee also ensures that the Bank's credit exposure to any one group or industry does not exceed the internally set limits and that the risk is prudentially diversified. The Committee consists of Mrs. Renu Karnad, Mr. Aditya Puri and Mr. C. M. Vasudev and is chaired by Mrs. Renu Karnad. The Committee met 5 (five) times during the year.

Credit Approval Committee

The Credit Approval Committee approves credit exposures, which are beyond the powers delegated to executives of the Bank. This facilitates


quick response to the needs of the customers and speedy disbursement of loans. The Committee consists of Mr. Jagdish Capoor, Mr. Aditya Puri, Mr. Keki Mistry and Mr. Gautam Divan. The Committee is chaired by Mr. Capoor. The Committee met 2 (two) times during the year.

The Premises Committee

The Premises Committee approves purchases and leasing of premises for the use of Bank's branches, back offices, ATMs and residence of executives in accordance with the guidelines laid down by the Board. The committee consists of Mr. Aditya Puri, Mr. Ashim Samanta, Mrs. Renu Karnad and Dr. Pandit Palande. Dr. Pandit Palande was inducted as member of the Committee w.e.f. May 17, 2007. The Committee is chaired by Mrs. Renu Karnad. The Committee met 4 (four) times during the year. Nomination Committee The Bank has constituted a Nomination Committee for recommending the appointment of independent / non-executive directors on the Board of the Bank. The Nomination Committee scrutinizes the nominations for independent / non-executive directors with reference to their qualifications and experience. For identifying fit and proper' persons, the Committee adopts the following criteria to assess competency of the persons nominated:


Academic qualifications, previous experience, track record, and Integrity of the candidates. For assessing the integrity and suitability, features like criminal records, financial position, civil actions undertaken to pursue personal debts, refusal of admission to and expulsion from professional bodies, sanctions applied by regulators or similar bodies and previous questionable business practice are considered. The members of the Committee are Mr. Arvind Pande, Mr. Ashim Samanta and Dr. Pandit Palande. Dr. Pandit Palande was inducted as member of the Committee w.e.f. May 17, 2007. The Committee is chaired by Mr. Arvind Pande. All the members of the Committee are independent directors. The Committee met 2 (two) times during the year.

Fraud Monitoring Committee

Pursuant to the directions of the Reserve Bank of India, the Bank has constituted a Fraud Monitoring Committee, exclusively dedicated to the monitoring and following up of cases of fraud amounting to Rs.1 crore and above. The objective of this Committee is the effective detection of frauds and immediate reporting thereof to regulatory and enforcement agencies and actions taken against the perpetrators of frauds. The terms of reference of the Committee are as under: Identify the systemic lacunae, if any, that facilitated perpetration of the fraud and put in place measures to plug the same. Identify the reasons for delay in detection, if any, reporting to top management of the Bank and RBI.


Monitor progress of CBI / police investigation and recovery position. Ensure that staff accountability is examined at all levels in all the cases of frauds and staff side action, if required, is completed quickly without loss of time. Review the efficacy of the remedial action taken to prevent recurrence of frauds, such as strengthening of internal controls. Put in place other measures as may be considered relevant to strengthen preventive measures against frauds.
The members of the Committee are Mr. Jagdish Capoor, Mr. Aditya Puri, Mr. Keki Mistry and Mr. Arvind Pande. The Committee is chaired by Mr. Jagdish Capoor. The Committee met 4 (four) times during the year.

Customer Service Committee The Committee monitors the quality of services rendered to the customers and also ensures implementation of directives received from RBI in this regard. The terms of reference of the Committee are to formulate comprehensive deposit policy incorporating the issues arising out of death of a depositor for operations of his account, the product approval process, the annual survey of depositor satisfaction and the triennial audit of such services. The members of the Committee are Mr. Keki Mistry, Mr. Arvind Pande and Dr. Pandit Palande. Dr. Pandit Palande was inducted as member of the Committee w.e.f. May 17, 2007. The Committee met 4 (four) times during the years



* HDFC Bank is Second largest private bank in India, having 1412 Branches and over 3275 ATMs across 528 cities at march end 2009 . *Net profit grows on YOY basis by 41% from Rs. 1,590 crore as on 2007-08 to Rs.2,245 crore as on 2008-09 * Total no. of employs closed to 80,000 people.that is lessthan SBI but more than ICICI bank(in the private sector, only only larger group such as the Tatas, Birlas, or reliance employee.more ) * Cost to income ratio at 53.6% was one of the highest amongst private Bank in FY09(It was 45% AXIS& ICICI Banks) * At march end 2009 Total Bank deposit is 44% of the bank deposit based (better than SBIs 42%,and ICICI Banks 25% only) *The CBoP merger has led to anet worth accretion of about Rs.1,34 crore v/s CBoPs Net assets of approximately Rs. 2,090 crore. * Stock of NPAs shot up by 119 % to Rs.1,988 crore during the further quarter ended. * Interest from investments income 20.42 % and interest from advances make up for over 61.85 % income in 2008-09. * Profit after tax for financial year 2009 was Rs. 2,245 crore * Total advances was Rs.63,427 crore as on 2007-08 increase to Rs,9,8883 as on 2008- 09. * Total deposits was Rs,1,00,769 crore as on 2007-08,increase to Rs,1,42,813 crore * Capital Adequacy Ratio(CAR) grows on YOY Basis by 13.60 % as on 2007-08 to 15.10 % as on2008-09 as on 2008-09

* There are 40 branches posted anet profit of Rs ,2,100 crore for 2008-09 by comparison


* Younger generation of customers targeted through IT enabled product and

service ;

--Online trading of shares --Online fund transfer, --online payments of taxes --phone banking --internet banking --E-shopping


Weakness In this booming market where we need to capture the mind of customer by providing them with new global facility and service should be available everywhere .if we talk about SBI it have 36 ATMs UBI 18 ATMs where as HDFC Bank has only 4 ATMs and 3 Branch. Some customer are not satisfied about banking service and

facilities It have not goods channels in rural and semi- urban area it was totally cover to city and multi-city area. but Nationalized bank cover total area. It have only 1,412 branches across only 528 cities in India compare to other competitors bank it is very few and does not cover to over all India. HDFC Bank has ICICI,IDBI,AXIS,SBI,PNB,BOB,UBI, IngVesya,Standard Charter , ABN-AMRO,and CITY BANK,as competitors which are more powerful in terms of secured market.


Where all banks re facing problems Lehman brothers ,Bank of America , Merrill lynch was insolvency all over world economic condition is very bad .market was be decrease day-by-day. HDFC is a bank which is strong enough to run properly in this competitive market. As being a private sector bank it is fresh from all kinds of rumors o it has got a new channel to makes its reputation before customer. For example many international bank have faced a tragedy of being defame in the view of customers. HDFC Bank can service is very goods compare the other private sector and nationalized bank. It can provide the easy loan facility to the customer and an make aproper goodwill. It have nice chance to spread its branches over small city and sub-urban over of India. Domestic consumption continues to drive growth. India is expected to be least impacted due to the global slowdown due to its diverse economic base and favourable demographics. The Company has focused on direct to consumer lending, innovative structuring of credit solutions, strong processes and prudent risk management. The company follows a micro market approach to geographic segmentation of markets.


The company plans to expand its product portfolio by adding General Insurance services and Investment! Savings Products such as sale of Mutual funds to its portfolio.

Irrational pricing, lenient credit norms in the past have led to increase in Non-performing assets across the retail lending space. The markets will continue to mature leading to rising expectation from consumers and your Companys growth will depend on its ability to differentiate its products ! services to compete effectively. Growth of the companys asset book, quality of assets and ability to raise funds depends significantly on the economy. Unfavourable events in the Indian economy can affect consumer sentiment. Changes in Government policy, regulatory framework could impact the companys operations. Recently many private banks have faced a great losses and some international banks was insolvency due to bad economic condition .and now they will be in the market with different strategy so now to look for the


innovation and try to find out the weakness of these banks. Still HDFC Have not got a very good service channels so it ,needs to improve its service and increase the no.of its channels HDFC Bank staff is very few according to customer service compare to other banks so it need to increase our staff and open new branch recently.

Awards and Achievements - Banking Services

2009 Asia Money 2009 Awards IBA Banking Technology Awards 2009 'Best Domestic Bank in India'

'Best IT Governance Award - Runner up'

Global Finance Award 'Best Trade Finance Bank in India for 2009 IDRBT Banking Technology Excellence Award 2008 'Best IT Governance and Value Delivery'

'Asian Banker Best Retail Bank in India Award 2009 '

Asian Banker Excellence in Retail Financial Services 2008 Finance Asia Country Awards for Achievement 2008 CNN-IBN Nasscom IT User Award 2008 Business India Forbes Asia Asian Banker Excellence in Retail Financial Services Asiamoney Microsoft & Indian Express Group World Trade Center Award of honour Business TodayMonitor Group survey Financial ExpressErnst & Young Award Global HR Excellence Awards - Asia Pacific HRM Congress: Business Today 2007 Dun & Bradstreet American Express Corporate Best Bank Award 2007

'Best Bank and Best Cash Management Bank'

'Indian of the Year (Business)' 'Best IT Adoption in the Banking Sector'

'Best Bank 2008' Fab 50 companies in Asia Pacific Best Retail Bank 2008

Best local Cash Management Bank Award voted by Corporates Security Strategist Award 2008

For outstanding contribution to international trade services.

One of India's "Most Innovative Companies" Best Bank Award in the Private Sector category

'Employer Brand of the Year 2007 -2008' Award - First Runner up, & many more

'Best Bank' Award

'Corporate Best Bank' Award

'Best Corporate Social Responsibility Practice' Award

The Bombay Stock Exchange and Nasscom Foundation's Business for Social Responsibility Awards 2007 Outlook Money & NDTV Profit The Asian Banker Excellence in Retail Financial Services Awards Asian Banker

Best Bank Award in the Private sector category. Best Retail Bank in India

Our Managing Director Aditya Puri wins the Leadership Achievement Award for India


Accounts & Deposits Savings Accounts Regular Savings Account Savings Plus Account SavingsMax Account Senior Citizens Account No Frills Account Institutional Savings Salary Accounts Payroll Classic Regular Premium Defence No Frills Salary Account Reimbursement Current Kid's Advantage Account Pension Saving Bank Family Savings Group Kisan No Frills Savings Kisan Club Savings Current Accounts Plus Current Account Trade Current Account Premium Current Account Regular Current Account RFC - Domestic Account Flexi Current Account Apex Current Account Max Current Account Fixed Deposits Recurring Deposit

Loans Personal Loans SmartDraft Home Loans Two Wheeler Loans New Car Loans Used Car Loans Express Loans Plus Gold Loan Educational Loan Loan Against Securities Loan Against Property Loans Against Rental Health Care Finance Tractor Loans Commercial Vehicle Finance Working Capital Finance Construction Equipment Warehouse Receipt Loans Cards Credit Cards Silver Credit Card Value Plus Credit Card Gold Credit Card Titanium Credit Card Woman's Gold Credit Card Platinum Plus Credit Card Visa Signature Credit Card World MasterCard Credit

Investments & Insurance Mutual Funds Tax Planning Insurance General & Health Insurance Bonds Knowledge Centre Equities & Derivatives Mudra Gold Bar Forex Services Products & Services Trade Services Forex Services Branch RBI Guidelines Forex Limits Payment Services NetSafe Merchant Services Prepaid Refill ngpay BillPay Visa BillPay PayNow Register & Pay InstaPay DirectPay Visa Money Transfer RTGS Funds Transfer e-Monies Electronic Funds Excise & Service Tax

Regular Fixed Deposit 5 Year Tax Saving Fixed Corporate Credit Card Super Saver Facility Sweep-in Facility Demat Account Safe Deposit Lockers EasyShop Gold Debit Card HDFC Bank Imperia / EasyShop Pro Gold Debit Access Your Bank NetBanking Credit Cards Online OneView InstaAlerts MobileBanking InstaQuery ATM PhoneBanking Email Statements Branch Network Business Credit Card Debit Cards EasyShop International Corporate Platinum Credit Online Payment of Direct Tax Online payment of DVAT Religious Offerings Donate to Charity

ic Banking

EasyShop International Imperia Premium Banking Debit Card Business Preferred Banking EasyShop Woman's Classic Banking Advantage Debit Card EasyShop NRO Debit Card Kisan Card Prepaid Cards ForexPlus Card GiftPlus Card FoodPlus Card MoneyPlus Card

Private Banking






The Board of Directors of HDFC Bank Limited approved the annual audited (Indian GAAP) accounts for the year ended March 31, 2009 at their meeting held in Mumbai on Thursday, April 23, 2009. The merger of Centurion Bank of Punjab Ltd (CBoP) with HDFC Bank Limited became effective on May 23, 2008 as per the order of Reserve Bank of India (RBI), with April 1, 2008 as the appointed date. The financial results for the year ended March 2009 are therefore for the merged entity, whilst the results for the year ended March 2008 are on a standalone basis for HDFC Bank and are therefore, not comparable.

Profit & Loss Account: Quarter ended March 31, 2009
For the quarter ended March 31, 2009, the Bank earned total income of Rs.5,365.5 crores as against Rs.3,505.5 crores in the corresponding quarter ended March 31, 2008, registering a growth of 53.1%. Net revenues (net interest income plus other income) were Rs.2,966.7 crores for the quarter ended March 31, 2009, an increase of 35.4% over Rs.2,191.4 crores for the corresponding quarter of the previous year. Interest earned (net of loan origination costs and amortization of premia on investments held in the Held to Maturity (HTM) category) increased from Rs.2,956.2 crores in the quarter ended March 31, 2008 to Rs.4,250.8 crores in the quarter ended March 31, 2009, up by 43.8%. Net interest income (interest earned less interest expended) for the quarter ended March 31, 2009 increased to Rs.1,852.0 crores, driven by average asset growth of 29% and a net interest margin of 4.2%.

Other income (non-interest revenue) registered strong growth of 102.9%


from Rs.549.3 crores for the quarter ended March 31, 2008 to Rs.1,114.8 crores for the quarter ended March 31, 2009. The main contributor to Other Income for the quarter was fees and commissions of Rs.714.8 crores, up 45.8% from Rs.490.4 crores in the corresponding quarter ended March 31, 2008. The other two major components of other income were foreign exchange/derivatives revenues of Rs.152.8 crores and profit on revaluation/sale of investments of Rs.243.6 crores, as against Rs.60.4 crores and Rs.11.4 crores respectively, for the quarter ended March 31, 2008. Operating expenses for the quarter were at Rs.1,396.2 crores, as against Rs.1,102.7 crores for the corresponding quarter of the previous year and were 47.1% of net revenues as against 50.3% for the corresponding quarter of the previous year. Provisions and contingencies for the quarter were Rs.657.4 crores against Rs.465.1 crores for the corresponding quarter ended March 31, 2008. The profit before tax grew by 46.4% to Rs. 913.1 crores for the quarter ended March 31, 2009. After providing Rs.282.2 crores for taxation, the Bank earned a Net Profit of Rs.630.9 crores, an increase of 33.9% over the quarter ended March 31,


Profit & Loss Account: Year ended March 31, 2009


For the year ended March 31, 2009, the Bank earned total income of Rs.19,622.9 crores as against Rs.12,398.2 crores in the previous year. Net revenues (net interest income plus other income) for the year ended March 31, 2009 were Rs.10,711.8 crores, up 42.6% over Rs.7,511.0 crores for the year ended March 31, 2008. Net Profit for year ended March 31, 2009 was Rs.2,244.9 crores, up 41.2%, over the corresponding year ended March 31, 2008.

Balance Sheet: As of March 31, 2009

The Banks total balance sheet size increased by 37.6% from Rs.133,177


crores as of March 31, 2008 to Rs.183,271 crores as of March 31, 2009. Total deposits were Rs.142,812 crores, an increase of 41.7% from March 31, 2008. With savings account deposits of Rs. 34,915 crores and current account deposits at Rs.28,445 crores, the CASA mix was at around 44.4% of total deposits as at March 31, 2009. Gross advances as at March 31, 2009 were Rs.100,239 crores, an increase of 48.3% over March 31, 2008. The Banks total customer assets (including advances, corporate debentures, investments in securitised paper, etc. net of loans securitized out) were Rs.100,436 crores as of March 31, 2009. Retail loans at Rs. 61,154 crores were up 55.5% over March 31, 2008 and now form 61% of gross advances.



The Board of Directors recommended an enhanced dividend of 100% for the year ended March 31, 2009, as against 85% for the previous year. This would be subject to approval by the shareholders at the next annual general meeting.

Capital Adequacy:
The Banks total Capital Adequacy Ratio (CAR) as at March 31, 2009 (Computed as per Basel 1 guidelines) stood at 15.1% as against 13.6% as Of March 31, 2008. The Bank adopted the Basel 2 framework as of March 31, 2009 and the CAR computed as per Basel 2 guidelines stands at 15.7% as against the regulatory minimum of 9.0%. Tier-I CAR was 10.6% as of March 31, 2009. The Bank raised Rs.2,875 crores of Tier II bonds during the year ended March 31, 2009.

















Rs in(crore)
4500 4000 3500 3000 2500 2000 1500 1000 500 0


2007-08 2008-9



6000 5000 4000 3000 2000 1000 0 2007-08 2008-09 HDFC ICICI PNB
Rs in(crore)



Profit of the increase as per increasing of the banking business. the increase in the Net Profit as fallows:250000 200000 150000 100000 50000 0 NET PROFIT

In the year 2005-06 Net Profit is Rs. 87,078 lacks In the year 2006-07 Net Profit is Rs 1,14,145 lacks In the year 2007-08 Net Profit is Rs 1,59,018 lacks In the year 2008-09 Net Profit is Rs 2,24,495 lacks






2005-06 2006-07 2007-08 2008-09

16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 2005-06 2006-07

11.7% 13.1% 13.6% 15.7%

capital adequacy ratio






(CHAPTER-4) Audit and Operation Management




Products and Services

Retail lending, besides individuals, also addresses requirements of businesses whose borrowing needs are akin to individual borrowers. Thus, requirements of small and micro enterprises that are too small to be serviced by corporate Lending Institutions are also well serviced by Retail Lenders. The segments being addressed are typically under serviced by the larger commercial banks thus creating a profitable niche for the Company to address. The Company has launched the following products and services: Loans The Company offers a range of Loans in the Unsecured and Secured Loans space that fulfill the financial needs of its target Segment. Insurance Services The Company is a corporate agent for HDFC Standard Life Insurance Company Limited. The Company sells Insurance bundled with its Loan as a value-add as well as a standalone product. Collection Services The Company has a contract with HDFC Bank for collection services. The Company has set up call centers across the country with a capacity of over 990 seats to meet current business requirements.



Operation management is the manage of all activities directly related to production of goods & services. The scope of operation management is not limited only to manufacturing industry but also extends to the service industry as well as operation management is the important part in the completed business cycle. Management decided plan the set of activities for the aim of achieving some predefine goal

Objective of Operation Management

Common objective that an effective operation management is expected to achieve are;

Customer Satisfaction
While planning the activities in relation to operations, managements prime concern is customer satisfaction. Management needs to study in details ,the expectations of consumer from the service to be rendered or the product they plan to produce. this objective forms the very basis of how a product should be ? in the very fast step while designing a product ,the management should take into specification

As discussed above, achieve customer satisfaction the pricing of should be competitive. Any organization is into the business with aim of providing rendering service for growth and profitability .for this ,the market price of the service should be competitive an pre-fixed that help determine the profitability for an organization. So for a management to be effective, it


needs to produce the right quality that meets all service specifications at minimal cost in order o increase sales or maintain high profitability with the existing sales.

The service rendered has to be qualitative and cost competitive. Further , even though if all the above criteria are met with and the service does not reach the consumer when required, the whole purpose is lost. The consumer does not wait for the service rather he/she acquires the same from a competitors .Therefore, to enable the successful sale for a service , it should be timely delivered . operation management play a vital role in providing the service timely by effectively maintaining the operation schedules . To summaries we can that an effective operation management needs to produce a service maintain the right quality in right quantity at the right time and at minimal service charges. All of the above can result in failure for the management to achieve its pre-set objectives and targets.


A Preprinted from on which in stractions are given to an account holder to pay a stated sum to named recipient. It is the most common from of payment of debts all kinds. Commonly cheque is two types MICR and NONMICR Cheque. MICR cheque refers to that cheque that putting to nine digit MICR no. in bottom position. Types of cheque Open cheque and cross cheque Open cheque refers to that is not crossed and payment to cash in bank window. Crossing of cheque;Section 123 defines crossing as, where a cheque bears across its face an addition of the words &co or any parallel transverse lines or of two parallel transverse line simply either with or without the words and company or any abbreviation thereof. A cheque having the cross mark such as X is not generally regarded as crossed cheque. As payment cannot be claimed


across the counter on across cheque crossing of cheque serves as a measure of safety against theft or loss of cheque in transit. Types of crossing Crossing may be either (1) General or (2) Special .General crossing implies the addition of two parallel lines Special crossing implies the specification of the names of the bank on the face of the cheque

Banking history in india

India has a well developed banking system. Most of the banks in India were founded by Indian entrepreneurs and visionaries in the pre-independence era to provide financial assistance to traders, agriculturists and budding Indian industrialists. The origin of banking in India can be traced back to the last decades of the 18th century. The General Bank of India and the Bank of Hindustan, which started in 1786 were the first banks in India. Both the banks are now defunct. The oldest bank in existence in India at the moment is the State Bank of India. The State Bank of India came into existence in 1806. At that time it was known as the Bank of Calcutta. SBI is presently the largest commercial bank in the country. The role of central banking in India is looked by the Reserve Bank of India, which in 1935 formally took over these responsibilities from the then Imperial Bank of India. Reserve Bank was nationalized in 1947 and was given broader powers. In 1969, 14 largest commercial banks were nationalized followed by six next largest in 1980. But with adoption of economic liberalization in 1991, private banking was again allowed. The commercial banking structure in India consists of: Scheduled Commercial Banks and Unscheduled Banks. Scheduled commercial Banks constitute those banks, which have been included in the Second Schedule of Reserve Bank of India (RBI) Act, 1934. RBI includes only those banks in this schedule, which satisfy the criteria laid down vide section 42 (6)(a) of theAct. Indian banks can be broadly classified into public sector banks (those banks in which the Government of India holds a stake), private banks (government doe not have a stake in these banks; they may be publicly listed and traded on stock exchanges) and foreign banks.













(CHAPTER-5) Conclusion


(Problems Faced During the Project) Life is full of complexities, diversities and adventures.

The more you live, the more your find yourself grasped in these complexities of life

a successful person, one has to cross the hurdles of these complexities and belie

they are adventures which are to be explored. Similarly, following were the set of of this

or limitations which were faced by me before I could arrive at the successful com

1) Main limitation is the availability of time and money. 2) Our organization has no internet facility. 3) The office is far away from our room.


4) As most of the employee were busy in their work, it was difficult to meet them individually for an interview




After the study of Audit and Operation Management I find that the A effective effort for continuous success in the field of Service sector. delays. There is need to increase in our human resources.

most importance is every bank and operation Management has to do

There is need to introduce e- banking to avoid postal and co

Generally financial transactions are settled on daily, wee

quarterly basis but our banking interim Management in India is advanced. So there is need to improve the banking sector so matches the pace of transactions and settlements in the all organizations.


Other than futures and options, other instruments like swaps

options have to be introduced so that area of operation managem broadened.

There is need to open the customer care in every branche

settlement to the customer confusion Reduce the branch cost and daily expenses