PROJECT SYNOPSIS

TITLED

AN ANALYTICAL STUDY OF
"FINANCIAL PERFORMANCE OF
HOUSING DEVELOPMENT FINANCIAL
CORPORATION (HDFC)"

SUBMITTED BY:______________
ENROLLMENT NO :______________
UNDER THE GUIDANCE OF: ___________
MBA, FINANCIAL MANAGEMENT
SUBMITTED TO: INDIRA GANDHI NATIONAL OPEN UNIVERSITY
 INTRODUCTION
HDFC Bank Limited is an Indian banking and financial services company
headquartered in Mumbai, Maharashtra. It has 88,253 permanent employees
as on 31st March 2018 and has a presence in Bahrain, Hong
Kong and Dubai. HDFC Bank is India’s largest private sector lender by assets. It
is the largest bank in India by market capitalisation as of February 2016. It was
ranked 69th in 2016 Brand Top 100 Most Valuable Global Brands.

History
In 1994, HDFC Bank was incorporated with its registered office
in Mumbai, India. Its first corporate office and a full service branch at Sandoz
House, Worli were inaugurated by the then Union Finance Minister, Manmohan
Singh.
As of June 30, 2017, the bank's distribution network was at 4,715 branches and
12,260 ATMs across 2,657 cities and towns. The bank also installed 4.30 Lacs
POS terminals and issued 235.7 Lacs debit cards and 85.4 Lacs credit card in FY
2017.

Products and services

HDFC Bank provides a number of products and services including wholesale
banking, retail banking, treasury, auto loans, two wheeler loans, personal loans,
loans against property and credit cards. Along with this, various digital
products are Payzapp and Chillr.

Acquisitions
HDFC Bank merged with Times Bank in February 2000. This was the first
merger of two private banks in the New Generation private sector
banks category. In 2008, Centurion Bank was acquired by HDFC Bank. HDFC
Bank Board approved the acquisition of CBoP for 95.1 billion INR in one of the
largest mergers in the financial sector in India.

Listings and shareholding

The equity shares of HDFC Bank are listed on the Bombay Stock Exchange and
the National Stock Exchange of India. Its American Depository Shares are listed
on NYSE and the global depository receipts are listed on the Luxembourg Stock
Exchange where two GDRs represent one equity share of HDFC Bank.
 Shareholders (as of 31 December 2015) Shareholding

Promoter group (HDFC) 21.57%

Foreign institutional investors (FII) 32.4%
Individual shareholders 8.5%
Bodies corporate 7.5%
Insurance companies 5.38%
Mutual funds/UTI 8.65%
NRI/OCB/others 0.29%
Financial institutions/banks 2.75%
ADS/GDRs 18.78%

CAPITAL STRUCTURE

As on 31st March, 2015 the authorized share capital of the Bank is Rs. 550 crore.
The paid-up share capital of the Bank as on the said date is
Rs. 501,29,90,634/- (equity shares of Rs. 2/- each). The HDFC Group holds
21.67% of the Bank's equity and about 18.87% of the equity is held by the ADS
/ GDR Depositories (in respect of the bank's American Depository Shares (ADS)
and Global Depository Receipts (GDR) Issues). 32.57% of the equity is held by
Foreign Institutional Investors (FIIs) and the Bank has 4,41,457 shareholders.

The shares are listed on the Bombay Stock Exchange Limited and the National
Stock Exchange of India Limited. The Bank's American Depository Shares (ADS)
are listed on the New York Stock Exchange (NYSE) under the symbol 'HDB' and
the Bank's Global Depository Receipts (GDRs) are listed on Luxembourg Stock
Exchange under ISIN No US40415F2002.

AMALGAMATION OF TIMES BANK & CENTURION BANK OF PUNJAB WITH

HDFC BANK
On May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC
Bank was formally approved by Reserve Bank of India to complete the statutory
and regulatory approval process. As per the scheme of amalgamation,
shareholders of CBoP received 1 share of HDFC Bank for every 29 shares of
CBoP.
The amalgamation added significant value to HDFC Bank in terms of increased
branch network, geographic reach, and customer base, and a bigger pool of
skilled manpower.
In a milestone transaction in the Indian banking industry, Times Bank Limited
(another new private sector bank promoted by Bennett, Coleman & Co. / Times
Group) was merged with HDFC Bank Ltd., effective February 26, 2000. This was
the first merger of two private banks in the New Generation Private Sector
Banks. As per the scheme of amalgamation approved by the shareholders of
both banks and the Reserve Bank of India, shareholders of Times Bank received
1 share of HDFC Bank for every 5.75 shares of Times Bank.

DISTRIBUTION NETWORK

HDFC Bank is headquartered in Mumbai. As of March 31, 2015, the Bank’s

distribution network was at 4,014 branches in 2,464 cities. All branches are
linked on an online real-time basis. Customers across India are also serviced
through multiple delivery channels such as Phone Banking, Net Banking, Mobile
Banking and SMS based banking. The Bank’s expansion plans take into account
the need to have a presence in all major industrial and commercial centers,
where its corporate customers are located, as well as the need to build a strong
retail customer base for both deposits and loan products. Being a clearing /
settlement bank to various leading stock exchanges, the Bank has branches in
centers where the NSE / BSE have a strong and active member base.
The Bank also has a network of 11,766 ATMs across India. HDFC Bank’s ATM
network can be accessed by all domestic and international Visa / MasterCard,
Visa Electron / Maestro, Plus / Cirrus and American Express Credit / Charge
cardholders.
 RATIONALE OF THE STUDY

Shelter is a basic human need and is a productive investment. Easy access to

institutional finance at affordable rates are an essential pre-requisite for
accelerating the tempo of housing activity. This is more so in the eastern and
north-eastern region where the general level of income is relatively low. It is,
therefore, imperative that a specialised housing finance system – albeit as an
integral part of the national finance system – be created for this region for the
development of new housing stock as well as for the renovation, up gradation
and expansion of the existing housing stock in the rural, semi – urban and urban
areas:
1. Out of the total outlay of Rs.97,500 crores for housing in the 8th Five Year
Plan, organized sector is expected to contribute about Rs.25,000/- crores. The
emergence of a number of HFCs in organized and unorganized sectors has
brightened the economic scenario. The potential for the HFCs is vast. The
success of HFCs depends on how effectively they can tap resources. Fortunately,
during the last couple of years, lot of emphasis has been placed on creating an
integrated national housing finance system. With the creation of National
Housing Bank, an apex housing finance institution, housing finance has
received added impetus. In addition to the NHB, there are many housing
financial institutions that are established in India.
2. Banks can venture into informal housing by providing loans for up gradation
of the housing stock in a gradual manner over a period of years. The schemes
for financing informal housing can be combined with the schemes meant for
employment and income generation, which can result in the overall
improvement in the living conditions of the poor. The informal housing market
also gives a chance for the banks to capitalize the absence of big existing
housing fiancé institutions. Housing finance being a specialized activity, it is
desirable to concentrate the activities by selected banks rather than the
indiscriminate involvement by all banks. As residential housing loans do not
create direct additional income, recovery of loan may prove to be difficult even
though loan may be adequately secured. There are many legal and other
hurdles to be tackled before substantial involvement of banks. At the same time,
banks cannot stand apart from housing finance particularly when many
avenues of traditional lending being taken away from commercial banks in the
wake of financial innovations. In addition to the problem of financing, the
biggest problem faced by prospective house owners and buyers is the
deficiency in getting services from the house finance companies in India.
Even today the housing finance companies while sanctioning loans to the
housing sector are treating the loans as an extension of their portfolio of loans
without studying problems of construction of houses and borrowers.
3. It is in this context an attempt is made here to study the problems of housing
in the City of DELHI State in India. It is also aimed at studying and evaluating
the progress of Housing Development Finance Corporation (HDFC) in financing
of housing activities in DELHI. In addition to study the service quality rendered
to house owners and customers.

PROBLEM STATEMENT
To conduct the analytical study of financial performance in Housing
Development Financial Corporation.

SCOPE OF THE STUDY

This study is conducted to know about the financial position of the HDFC bank.
The scope of this research is to identify the service quality of HDFC bank. This
research is based on primary data and secondary data. This study only focuses
on the dimensions of service quality, i.e. RATER. It aims to understand the skill
of the company in the area of service quality that are performing well and
shows those areas which require improvement. The study was done taking two
branches of HDFC bank into consideration. The survey was restricted to the
bank customers in Delhi region only.
 OBJECTIVES OF THE STUDY

• To study the importance of housing, demand for housing and house

finance in India.
• To study the role of HDFC in financing of houses in DELHI.
• To identify the popular schemes of HDFC.
• To analyze the trends in housing finance HDFC.
• To ascertain the problems of borrowers of HDFC while availing housing
loans.
• To evaluate the impact of tax considerations on housing finance with
respect to HDFC.
• Measuring the service quality being provided by HDFC to its customers
in DELHI.
• Finally, to suggest certain measures to housing loan policy makers of
HDFC for increasing the service quality to its customers so as to increase
its base.
 RESEARCH METHODOLOGY

A Research Methodology defines the purpose of research, how it proceeds, how

to measure progress and what constitute success with respect to the objectives
determined for carrying out the research study. The appropriate research
design formulated is detailed below.

EXPLORATORY RESEARCH: This kind of research has the primary objective of

development of insights into the problem. It studies the main area where the
problem lies and also tries to evaluate some appropriate courses of action. The
research methodology for the present study has been adopted to reflect these
realities and help to reach the logical conclusion in an objective and scientific
manner. The present study contemplated on an exploratory research.

NATURE OF DATA: In research methodology, data must be collected. And there

are two sources of collection of data, i.e.

PRIMARY DATA: Data which is collected through direct interviews and by

raising questionnaires.

SECONDARY DATA: Secondary data is that data which is already available and
published. It could be internal and external source of data.

INTERNAL SOURCE OF DATA: It originates from the specific field of study like
published brochures, official reports, etc.

EXTERNAL SOURCE OF DATA: It originates outside the field of study like

books, periodicals, journals, newspapers and internet.

DATA COLLECTION: It will be collected through structured questionnaires,

personal interviews/discussions with focus on his/her choice before availing
for the service; from where I will be able to gather relevant data and interacted
with some officials to get a hang of all the basic awareness they had.
On the basis of the response from the filled in questionnaires and the survey,
data analysis was done along with the conclusion and recommendations given
towards the end of report.
SAMPLE DESIGN:

SAMPLING UNIT: RESPONDENTS OF HDFC BANK

SAMPLE SIZE: APPROX 100 (may vary during actual study)
RESEARCH LOCATION: DELHI
RESEARCH PERIOD: Upto 3 months

SAMPLING PROCEDURE: RANDOM SAMPLING

I will use secondary data for this project and some primary data will also be
considered, i.e. MUTUAL FUND SCHEME.
Some of the following references proposed to be used, which are stated below:

1. Published data- annual report, brochure, newsletter and website.

2. Direct And Indirect Interview- Interview with some of the existing
investors of mutual funds.
3. Reference books-IGNOU study material, management articles.

ANALYTICAL TOOLS:

• MS WORD 2007
• MS EXCEL 2007
• PERCENTAGE ANALYSIS
 LIMITATIONS OF THE STUDY

Following are the limitations of the study:

1. The study may cover geographical boundaries of DELHI City only.

2. Due to lack of awareness, some house loan applicants and loan takers could
not respond to questionnaire properly.

3. While studying the aspects of respondents of HDFC about performance

appraisal, certain items of investigation had to be dropped in view of non-
response from the respondents.

4. The study of respondents (borrowers) perception is limited to the items

which received enough response from them.

5. Time constraint

6. Sample size constraint

7. Research constraint

8. Only single organization will be studied.

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