INTRODUCTION

Reach is a rather small word for the world of possibilities it

encompasses. In the past years, HDFC has expanded their
horizons in many directions, adding new dimensions to their
business.

Their rapidly expanding network is but one element that has

enabled HDFC to increase their reach. Consider this; in March
2008 the number of HDFC Bank branches stood at 761, at
present in 2010 they have more than doubled their strength to
over 1,700. Complemented by more than 4,200 ATMs, their
network is reaching further than ever before.

2009-2010 has witnessed newer heights and has left behind many
past records. HDFC Bank’s aim through the year was to bring
world class banking to all their customers while increasing both
their customer base and their ability to serve this growing
number. Along the way, they received accolades for their work
from within the country and internationally.

The only real purpose they serve is to provide greater

achievement and reinforce their commitment to the journey of
achieving true reach.
ORIGIN OF THE ORGANIZATION

If ever there was a man with a mission it was Hasmukhbhai Parekh, the
Founder and Chairman-Emeritus, who left this earthly abode on November
18, 1994.

Born in a traditional banking family in Surat, Gujarat, Mr. Parekh started his
financial career at Harkisandass Lukhmidass - a leading stock broking firm.
The firm closed down in the late seventies, but, long before that, he went on
to become a towering figure on the Indian financial scene.
In 1956, he began his lifelong financial affair with the economic world, as
General Manager of the newly formed Industrial Credit and Investment
Corporation of India (ICICI). He rose to become Chairman and continued so
until his retirement in 1972.

At the ripe age of 60, Hasmukhbhai started his second dynamic life, even
more illustrious than his first. His vision for mortgage finance for housing
gave birth to the Housing Development Finance Corporation - it was a
trendsetter for housing finance in the whole Asian continent.
He was a true development banker. His building up HDFC without any
government assistance is itself a brilliant chapter in financial history. His
wisdom and warmth drew people from all walks of life to him, for advice,
guidance and inspiration.

HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED is

popularly known as HDFC LTD. HDFC was incorporated in 1977 with the
primary objective of meeting a social need - that of promoting home
ownership by providing long-term finance to households for their housing
needs. HDFC was promoted with an initial share capital of Rs. 100 million.

2
The shareholders of the Corporation at the 33rd Annual General Meeting
held on Wednesday, July 14, 2010, appointed Mr. Deepak S. Parekh as a
Director

Today, nearly three million satisfied customers whose dream they have
helped realize, stand testimony to their success. HDFC’s objective, from the
beginning, has been to enhance residential housing stock and promote home
ownership.
Now, HDFC’S offerings range from hassle-free home loans and deposit
products, to property related services and a training facility. HDFC also
offer specialized financial services to their customer base through
partnerships with some of the best financial institutions worldwide.

Subsidiaries and associate Companies

HDFC Bank

HDFC Mutual Fund

HDFC Standard Life Insurance Company

HDFC Sales

HDFC ERGO General Insurance Company Ltd)

Other Companies Co-Promoted by HDFC

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HDFC Trustee Company Ltd.
GRUH Finance Ltd.
HDFC Developers Ltd.
HDFC Property Ventures Ltd.
HDFC Ventures Trustee Company Ltd.
HDFC Investments Ltd.
HDFC Holdings Ltd.
Credit Information Bureau (India) Ltd

HDFC has always been market-oriented and dynamic with respect to

resource mobilisation as well as its lending programme. This renders it more
than capable to meet the new challenges that have emerged. Over the years,
HDFC has developed a vast client base of borrowers, depositors,
shareholders and agents, and it hopes to capitalise on this loyal and satisfied
client base for future growth. Internal systems have been developed to be
robust and agile, to take into account changes in the volatile external
environment.

HDFC has developed a network of institutions through partnerships with

some of the best institutions in the world, for providing specialized financial
services. Each institution is being fine-tuned for a specific market, while
offering the entire HDFC customer base the highest standards of quality in
product design, facilities and service.

HISTORY OF THE
ORGANIZATION

4
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 Bank was Incorporated on 30th August 1994. HDFC Bank commenced
operations as a Scheduled Commercial Bank in January 1995.

It is a private sector Bank promoted by housing Development Corporation

Ltd.(HDFC), a premier housing finance company.
Certificate of Commencement of Business was received on 10th October
1994 from RBI. The Bank transacts both traditional commercial banking as
well as investment banking.

HDFC Bank Limited. The Group's principal activities are to provide banking
and other financial BANK. The Group operates through four segments:
Treasury, Retail Banking, Wholesale Banking and Other Banking Business.
The Treasury BANK segment consists of net interest earnings on
investments portfolio of the bank and gains or losses on investment
operations. The Retail Banking segment serves retail customers through a
branch network and other delivery channels. This segment raises deposits
from customers, makes loans, and provides advisory BANK to customers.
The Wholesale Banking segment provides loans and transaction BANK to
corporate and institutional customers. The Other Banking Operations
segment provides BANK relating to credit cards, debit cards, third party
product distribution and primary dealership business and other associated
costs.

HDFC, the promoter of the bank has entered into an agreement with
National Westminister Bank Pc. and its subsidiaries (Nat west Group) for
subscribing 20% of the banks issued capital and providing technical
assistance in relation to the banks proposed banking business.

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HDFC Limited, Bennett, Coleman & Co. Ltd. and its group companies (the
promoters of erstwhile Times Bank Limited) and Chase Funds had entered
into a tripartite agreement dated November 26, 1999 for effecting
amalgamation of Times Bank Limited with the Bank. Under this Agreement,
Bennett Coleman Group has a right to nominate one Director on the Board
of the Bank as long as its holding exceeds 5% of the share capital of the
Bank. Currently, as on March 31, 2008, the Bennett Coleman Group holds
4.57% of the share capital of the Bank and Mr. Vineet Jain who represented
the Bennett Coleman Group on the Board has since resigned as a Director of
the Bank.

Listing on stock exchanges:

Listing on Indian Stock Exchanges

SR.NO NAME OF THE STOCK EXCHANGE STOCK CODE
1. Bombay Stock Exchange Limited 500180
2. The National Stock Exchange of HDFC BANK
India Limited

Names of Depositories in India for dematerialisation of

equity shares:
• National Securities Depository Limited (NSDL)
• Central Depository Services (India) Limited (CDSL)

Listing on International Stock Exchanges:

SR.NO SECURITY NAME OF THE NAME OF THE
DESCRIPTION STOCK DEPOSITORY
EXCHANGE
1. The American The New York J P Morgan
Depository Stock Exchange Chase Bank,
Shares
2. Global Luxembourg Deutsch Bank
Depository Stock Exchange Trust Company
Receipts (GDRs)

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 MISSION AND BUSINES
STRATEGY
HDFC Bank's mission is to be a ”World-Class Indian Bank benchmarking
itself against international standards and best practices in terms of product
offerings, technology, service levels, risk management and audit and
compliance. The objective is to build sound customer franchises across
distinct businesses so as to be the preferred provider of banking services for
target retail and wholesale customer segments, and to achieve healthy
growth in profitability, consistent with the bank's risk appetite. The bank is
committed to maintain the highest level of ethical standards, professional
integrity, corporate governance and regulatory compliance.

HDFC Bank's business philosophy is based on four core values –

 Operational Excellence
 Customer Focus
 Product Leadership
 People.

HDFC BANK business strategy emphasizes the

following:

• Increase market share in India’s expanding banking and

Financial services industry by following a disciplined growth
strategy focusing on quality and not on quantity and delivering
high quality customer service.

• Leverage its technology platform and open scaleable systems

to deliver more products to more customers and to control
operating costs.

• Maintain current high standards for asset quality through

disciplined credit risk management.

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 • Develop innovative products and services that attract the
targeted customers and address inefficiencies in the Indian
financial sector.

• Continue to develop products and services that reduce bank’s

cost of funds.

• Focus on high earnings growth with low volatility.

Continue to develop new product and technology is the main

business strategy of the bank. Maintain good relation with the customers is
the main and prime objective of the bank.

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 GROWTH AND DEVELOPMENT

1994

• The Bank was Incorporated on 30th August. A new private sector

Bank promoted by Housing Development Corporation Ltd. (HDFC), a
premier housing finance company. The bank is the first of its kind to
receive an in-principle approval from the RBI for establishment of a
bank in the private sector. Certificate of Commencement of Business
was received on 10th October 1994 from RBI.

• The Bank transacts both traditional commercial banking as well as

investment banking. HDFC, the promoter of the bank has entered into
an agreement with National Westminister Bank Pc., its subsidiaries
(Natwest Group) for subscribing 20% of the banks issued capital, and
providing technical assistance in relation to the banks proposed
banking business.

1995
• 70 No. of equity shares issued to subscribers to the Memorandum &
Articles of Association on 30th August 1994. On the same date
500,00,000 equity shares were allotted to HDFC promoters.
509,20,000 shares were allotted to HDFC Employees Welfare Trust
and HDFC Bank Employees Welfare Trust on 22nd December, 1994.

• On 16.1.1995, 90,79,930 No. of equity shares were allotted to

Jarrington Pte. Ltd. Another 400,00,000 equity shares were allotted
on private placement basis to Natwest Group on May 9,1995.
500,00,000 shares were allotted to the public on 9.5.95 (all were taken
up).

• The Bank opened its first branch in Ramon House at Churchgate,

Mumbai on January 16.

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 • The Bank has created an efficient operating system using well tested
state-of-the-art software.

1996
• HDFC Bank has entered the banking consortia of over 50 corporates,
including some leading multinational companies, flagship companies
of local business houses and strong public sector companies.

• HDFC Bank has set up a state-of-the-art dealing room to handle all

transactions possible in Indian financial markets.

• The Certificates of Deposits were awarded a PP1+ rating which is the

highest rating for short term instruments indicating superior capacity
for repayment.

1997
• The bank is one of the largest mobilisers of retail deposits through its
network of 20 branches. Its credit deposits ratio was 53.8%.

• The bank has set up an ultra-modern hub at Powai in Mumbai where

the bank's central computer is housed. This hub housed in 35,000
square feet of space, houses data of all the branches and facilitates the
introduction of new products and services.

• HDFC has installed state-of-the-art systems to facilitate inter-

connectivity between branches and link up with online system.

• The bank has also recently signed up as a depository participant,

under the newly set up NSDL, wherein the members clearing accounts
settlement for dematerialized shares can be done through the bank.

• HDFC Bank, one of the nine new-generation private sector banks, has
planned to set up an all-India on-line automated teller machine
• (ATM) network.

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• HDFC Bank proposed to launch tele-banking for the first time in June
in Mumbai at its Chandivali branch.

• HDFC Bank has drawn up plans to become a niche player in

corporate banking by sticking to top-rung corporates.

• HDFC Bank has become the first private sector bank to conclude a
structured interest rate option deal.

• HDFC Bank has launched its Versova branch, the 11th branch in
Mumbai.

• HDFC Bank, as part of its expansion plans in the South, has opened
another branch in Chennai.

• HDFC Bank has entered into strategic alliances with 10 overseas

banks to provide customers with a wide range of derivatives including
interest rate and foreign currency swaps.

• HDFC Bank on October 14 introduced ATMs that converse in a

regional language.

• HDFC Bank has introduced the Freedom Account for the average
retail customer located in the major metros as a means to wean away
the middle-income market from nationalized banks.

• HDFC Bank has launched an account in all its 28 branches across

India that seeks to free depositors from minimum balance
requirement, for first time in the country.

• HDFC has introduced a new loan product for the payment of

betterment fees announced by the Bangalore Mahanagar Palike.

• HDFC Bank is all set to launch its debit card by April 1998.

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1998
• HDFC Bank has tied up with the Ahmedabad Stock Exchange (ASE)
to act as its clearing bank.

• HDFC Bank proposes to strengthen its branch network in Calcutta

with the addition of two new branches in the first quarter of the next
fiscal.

• HDFC Bank has signed an agreement with the National Stock

Exchange (NSE), which will give it a second charge over the brokers
deposit for providing loan against share facility to NSE brokers.

• The bank has also entered into a similar understanding with the
Bombay Stock Exchange (BSE) whereby the bourse will provide
support for recovery of money against the card for loan against share
facility.

• The bank has also entered into `Cirrus' arrangements by which all
master card holders across the globe will be able to transact at HDFC
Bank in India.

• The bank will also provide phone-banking facility in Bangalore.

HDFC has tied up with Visa International to offer its Debit Card.

• HDFC Bank Ltd has entered into a memorandum of understanding for

strategic business collaboration with Chase Manhattan Bank.

• HDFC Bank has become the first bank in India to link up its
automated teller machine (ATM) network with all the three major
payment systems worldwide.

• HDFC Bank will be the first bank in the Asia-Pacific region to

connect the American Express (Amex) payment system.

• The HDFC Bank is expanding its ATM network to connect to

American Express Interchange based in Phoenix, Arizona, USA. With
this connectivity, HDFC Bank has become the first bank in the Asia-
pacific region to connect to the Amex Interchange.

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 • HDFC Bank was the first to sign up with AMEX in December of
1998.

• The Bank has tied up with ITC Threadneedle Mutual Fund to provide
its investors with the High Interest Fund (HIF), a facility to encash
their units through the bank's Automated Teller Machines in addition
to a cheque book facility also to be provided by the bank.

• Sony India Ltd (SIL) has joined hands with HDFC Bank to work out
an innovative car finance package under which a Sony car audio
system would be installed to a new car for no additional upfront cash
outflow.

• The bank has decided to issue 1, 33, 10,000 equity shares of Rs. 10
each to HDFC and a wholly-owned subsidiary of it at a price of Rs.
94 per share.

• The bank will also issue 13,70,000 equity shares to India Private
Equity Fund and 51,20,000 shares to Indocean Financial Holding, the
two equity funds controlled by Chase Manhattan Bank.

• HDFC Bank, has tied up with BPL Ltd to offer Internet-enabled

supply-chain management and business-to-consumer (B2C) e-
commerce services to corporates.

• Hutchison Max Telecom and HDFC Bank introduced the country's

first-ever mobile-banking services in the city.

1999
• HDFC Bank also signed a memorandum of understanding with
Singapore Telecom's e-commerce arm Sesami.Com Pvt Ltd.

• The Bank latter also entered into a partnership agreement with

National Computer Systems, the e-commerce unit of Singtel.

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• A new company called SESAMi.com (India) has been formed by a
strategic alliance between HDFC Bank and Singapore Telecom's e-
commerce company SESAMi.com, to offer e-commerce solutions
for the Indian market.

• HDFC Bank has a tie-up with Maxtouch for giving the facility to the
latter's customers in Mumbai. This is the first and only service of
this sort in the country, he said.

• HDFC Bank is also launching an online electronic banking solution

called Enet, which will allow corporates to access their accounts
over the net and carry out trade related transactions and cash
management functions.

• HDFC Bank entered into a tie-up with Telco by which the bank
would provide preferential financing options for Tata's range of
passenger cars including the Indica, Sumo, Safari, Estate and Sierra.

• HDFC Bank allotted 1.98 crore shares of Rs 10 each at an issue

price of Rs 94 per share to promoters and strategic investors on
March 29.

• HDFC Bank is also set to become the first bank in the country to
offer wireless application protocol (WAP) services to customers.

• The bank has tied up with 12 utility companies nationwide including

BSES, MSEB, BEST, Orange, BPL and MTNL.

• The Bank has tied up with financial portals, e-brokerages and the
National Stock Exchange to enable broker payments for e-broking
ventures.

• The Bank has set up 100 new electronic data capture (EDC)
terminals in Mumbai.

• HDFC Bank has launched its first B2C payment gateway, which
allows Visa and MasterCard credit card-holders to do transaction
online and real-time.

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• CYBERITMALL.COM has joined hands with HDFC Bank to
provide VISA/MasterCard users with an online payment gateway
solution to enable them to have a secure e-shopping experience.

• HDFC Bank plans to extend its mobile phone banking services

introduced in select metros to mobile phone broking when it
introduces its Internet on-line trading in July.

• HDFC Bank and portal clickforsteel.com have signed a

memorandum of understanding for offering online credit and
services to facilitate `post transaction' activities through the portal's
`allied service providers' programme.

• Indianfoline.com signed an agreement with HDFC bank for the use

of payment gateway to enable online financial transactions.

• HDFC Bank, in association with cellular service provider Orange,

has launched the entire range of mobile banking services and mobile
commerce services using wireless application protocol (WAP)
technology.

• The Company has introduced a new scheme whereby it will provide

loans to individuals for payment of self assessment tax on their
properties in Bangalore.

• The Foreign Investment Promotion Board has cleared the proposal

of the HDFC Group to enter into a joint venture with Singapore
Telecom's e-commerce company for providing a comprehensive
range of business-to-business e-commerce solutions to companies in
India.

• The Company proposes to pick up an equity stake in Softcell Trade

and Technologies Ltd., a Mumbai-based software company.

• BPL Mobile has tied up with HDFC Bank to offer Internet banking
through the mobile phone.

• HDFC Bank launched `eInstant Car Loans' a new scheme for

offering customers a range of net-enabled loan products.

15
• HDFC Bank launched depository services on the net.

• HDFC Bank tied up with NSE.IT, a wholly owned subsidiary of the

• National Stock Exchange, for providing payment gateway services
for the latter's Internet trading operations.

• HDFC Bank has been identified as the best domestic commercial

bank for the second consecutive year by FinanceAsia.com, which
provides a network for financial decision makers.

• The Mumbai-based Geojit Securities Ltd. has tied up with HDFC

Bank for Internet trading of shares.

• Calcutta's cellular services provider Modi Telstra, and HDFC Bank

have entered into a collaboration to provide mobile commerce in
Calcutta.

• HDFC Bank has got the Kerala-based Nedungadi Bank as its first
customer for its new joint venture company with I-Flex Solutions.

• HDFC Bank has set a target of attaining a business of over Rs

15,000 crore this fiscal mainly through expansion and new product
launches, including a credit card.

• HDFC Bank, in association with Tata Cellular, has launched Mobile

Commerce Service, for customers in Hyderabad and Vishakaptnam.

• HDFC Bank has tied up with about 25 equity brokerages for

enabling third party transfer of funds and securities through its
business-to-business portal -- `e-Net'.

• The Bank has entered into an alliance with Deloitte Haskins and
Sells, a member firm of Deloitte and Touch, to offer banking
services to its non-resident Indian customers.

• HDFC Bank has launched its 123rd outlet at Delhi Stock Exchange
building at Asaf Ali Road.

16
2000
• The Bank proposes to acquire up to 24.5 per cent stake in the MIEL
e-Security Pvt. Ltd., which is engaged in the business of developing
and marketing of security products and services for a range of
• e-commerce and enterprises security applications.

• The Bank has tied up with Rajan Raheja-owned Hathway for

providing banking at home as part of the Net-over-cable initiative of
the latter in Mumbai.

• HDFC Bank launched its on-line bill payment facility in alliance

with the Maharashtra State Electricity Board has also begun to offer
bridge loans against fixed deposits of parent Housing Development
Finance Corporation the financial institution.

• HDFC Bank has tied up with portal brainvisa.com to retail education

loans to students.

• The Gujarat Cellular operator Fascel, has signed up with the HDFC
Bank to introduce mobile commerce for the first time in the State.

• HDFC Bank has tied up with BPL Mobile for mobile commerce
facility.

• CricketNext.com, a sports e-commerce site has tied up with HDFC

Bank to provide an on-line payment gateways and marketing
opportunities for a wide range of cricket sports gear on its on-line
shop BatNext.

• Singapore-based Growasia.com has entered into an understanding

with HDFC Bank and credit rating agency Icra, for picking up
equity in the company's Indian subsidiary Gasia.com.

• The Bank has launched `Freedom - The e-Age Savings Account' for
cellular phone users.

17
 • Spice Cell has tied up with Citibank N A, HDFC Bank and ICICI
Bank for mobile bill settlements.

• HDFC Bank and Cosmos Bank launched a co-branded ATM card.

• The Chatterjee Group-promoted Captech Online Ltd. has signed

memorandum of understanding with HDFC Bank and UTI Bank for
setting up a payment gateway for its debt negotiation platform,
Riskxpress.com.

• HDFC Securities Ltd., promoted by the HDFC group with equity

participation from the Housing Development Finance Corporation
Ltd., HDFC Bank and Chase Capital Partners, has launched its
brokerage services for retail investors in the Capital.

• The HDFC Bank and Airtel launched their mobile-banking service

through WAP in Delhi.

• HDFC Bank has launched wireless application protocol-based

mobile-banking in Coimbatore and Trichy in association with
Aircel.

2001
• The Bank has opened its first branch in Aurangabad.

• HDFC Standard Life Insurance has entered into a memorandum of

understanding with the Chennai-based Indian Bank.

• The Bank has launched the international Maestro debit card in

association with Master Card.

• HDFC Bank will launch its credit card in June through link-ups with
MasterCard and Visa.

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 • LTtrade.com has entered into a strategic tie-up with HDFC Bank to
provide Net banking services to online investors.

• Standard Chartered Bank, HDFC Bank and Bharat Petroleum

Corporation have joined the eCash Forum which has been set up by
the Smart Card Forum of India.

• HDFC Bank has launched a new campaign for its eage savings
account.

• HDFC Bank entered into a strategic tie-up with Tally Solutions Pvt.
Ltd. to offer online real time accounting services to small and medium
enterprises.

• The Bank has opened four ATMs outlets in Bangalore at Coles Road,
RT Nagar, Rajaji Nagar and Jaya Nagar on March 26.

• HDFC Standard Life Insurance has launched a `Development

Insurance
• Plan' a low cost life insurance product developed specifically to meet
the needs of economically weaker sections.

• Two Directors, Mr. S.S. Thakur and Mr. Amit Judge, have resigned
from the board of the bank effective from March 30.

• HDFC Bank files with US regulators to list more than 11 million

American Depositary Shares on the New York Stock Exchange
.

2002
• HDFC Bank unveiled a new online account aggregation service
`OneView'.

• HDFC Bank launched its 9th branch in Karnataka.( Mangalore)

• HDFC Bank unveils Silver card in Hyderabad.

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• HDFC Bank opens first overseas representative office.

• HDFC Bank unveils gold card

• Mediclaim facilities to HDFC Bank gold cardholders.

• HDFC Bank Ltd has informed BSE that Mr Deepak Satwalekar has
submitted his resignation as Director of the Bank. The Board of
Directors has accepted the same. The Board of Directors has co-opted
Mrs Renu Karnad as Additional Director of the Bank.

• HDFC Bank launched new products to its wealth management

programme to increase its customer base. The bank introduced a non-
interactive product named Financial Planner, which would be
available for all its customers for an annual fee starting from Rs
10,000. The bank is offering fee based advisory programme to the
mass affluent segment, which was earlier offered to high net worth
customers. The wealth management programme would cater to
individual needs taking into account various factors such as
customer's age, financial goals and risk profile, which includes equity,
MFs and debt instruments such as RBI Relief Bonds.

2003
• HDFC Bank unveils resident foreign currency account.

• HDFC Bank unveils co-branded credit card with e-Seva.

• The Board of Directors of HDFC Bank Ltd at their meeting held on

January 15, 2003 approved the appointment of Mr. Arvind Pande as
an
• Additional Director pursuant to section 260 of the Companies Act,
• 1956.

• EPFO JV with HDFC Bank for its pension distribution.

20
 • HDFC enters into agreement with HDFC Bank to source housing
loans.

• HDFC Bank, IRCTC in tie up for online railway booking.

• HDFC Bank inks pact with ANB for remittance service

• HDFC Bank introduces 'HDFC Bank Health Plus Credit Card'.

• Uma Krishnan resigns HDFC Bank as country head.

• Escotel ties up with HDFC Bank for Global Debit Card.

• HDFC Bank launches India's first mobile payment solution.

• HDFC Bank's debt programme of Rs 400-crore has received triple A

(ind) rating from CREDIT rating agency FITCH.

• Mumbai - HDFC Bank in collaboration with Tally Solutions is

planning to launch electronic data interchange (EDI) system for small
and medium enterprises (SMEs).

• Warburg Pincus sells 2% stake in HDFC for Rs 235 cr

• HDFC Bank began selling home loans of its promoter Housing

Development Finance Corporation (HDFC).

• Board approved to allot 4,16,400 equity shares to the employees of

the Bank under the Employee Stock Option Scheme.

2004

• HDFC Bank has entered into an alliance with Clearing Corporation of

India Ltd (CCIL). The tie-up offers the latter's collateral borrowing
and lending obligation (CBLO) product to cooperative banks that are
not direct members of the negotiated dealing system (NDS).

21
• HDFC Bank repurchases HDFC loans worth Rs 208 crore.

• Launches Quick remit, a unique online service that enables NRIs in

the US to send money to their relatives in India from the comfort of
their homes.

• Andhra Bank has entered into an alliance with HDFC Bank for
sharing its network of automated teller machines (ATMs). On March
29, 2004.

• HDFC Bank and Bahraini Saudi Bank (BSB) have announced an

alliance to cater to service the needs of the non-resident Indians
(NRIs) in Bahrain.

• HDFC bank Ltd has informed that Dr (Mrs) Amla Samanta has ceased
to be a director of the Bank wef April 25, 2004.

• HDFC Bank launches new scheme for Maruti 800 buyers, providing
85 percent finance on the on-road price of the car for seven years.

• HDFC Bank wins Asia money award for Best Domestic Bank.

• HDFC Bank Managing Director Aditya Puri has been awarded the
Management Man of the year by the Bombay Management
Association (BMA).

• HDFC Bank has entered into an agreement with Shrachi Securities

Ltd, the flagship company of the Kolkata-based Rs 300-crore Shrachi
Group, for financing of multi-utility vehicles all over India

• HDFC Bank has launched an online bill payment facility for its
customers who are also subscribers to Tata Teleservices

• HDFC Bank join hands with NCR Corporation to offer managed

ATM services

• IKF Finance Ltd has entered in to a Joint Lending Arrangement with

HDFC Bank Ltd

22
2005
• TMB forges alliance with HDFC Bank

• HDFC Bank inaugurates first ATM in Hotel

• HDFC Bank ties up with the International Bank of Qatar (IBQ) to

launch banking services in Qatar.

• HDFC Bank launches loyalty rewards programme for its debit and
credit cardholders under the name InstaWonderz.

• HDFC Bank along with MasterCard International launched credit card

targeted at small and medium-sized enterprises

• HDFC Bank has tied up with US-based WL Ross and company LLC
for investing in corporate restructuring.

• HDFC Bank unveils credit card for farmers.

2006
• HDFC sets up two more branches in AP

• Osim to join hands with HDFC Bank for consumer loans

• HDFC Bank inaugurates VbV facility for online shopping

2007
HDFC Bank has signed an agreement with Tata Pipes to offer credit
facilities to farmers across the country.

23
 • Hdfc Bank Ltd has appointed Mr. Pandit Palande as an additional
Director of the Bank at the Board Meeting held today i.e. on 24th
April 2007.

• HDFC Bank Ltd has informed that the Board of Directors of the Bank
at its meeting held on October 12, 2007, has appointed Mr. Paresh
Sukthankar & Mr. Harish Engineer as Executive Directors on the
Board of Directors of the bank. Mr. Sukthankar & Mr. Engineer have
been senior employees of the Bank since 1994 and have held various
positions of responsibility.

2008

• HDFC Bank Ties Up With Postal Department, Extends Rural Reach

• HDFC Bank Wins ‘Nasscom IT User Award The Year'

• HDFC Bank Opens Its First Overseas Branch In Bahrain

• HDFC Bank and Centurion Bank of Punjab merger at share swap

ratio of 1:29

• HDFC Bank Launches India’s First Rural Banking BPO at Tirupathi

• HDFC Bank Launches India’s First Online Market Linkage Program

for Self Help Groups

2009
• HDFC Bank bags “Asia money Award” for the Best Domestic Bank.

• HDFC Bank offers electronic payment collection facility to

Guruvayoor Devaswom.

• HDFC Bank launches ‘Meritus’ Scholarship Program.

• The Asian Banker declares HDFC Bank “The Best Retail Bank”.

24
2010
• With a view to attract long term deposits and prevent premature
withdrawal when the interest rates peak, HDFC, the housing finance
major, has decided to pay variable interest rate on recurring deposits.

• HDFC Bank on Feb 19 increased the fixed deposit rates by up to 150

basis points across maturities, a move that follows the Cash Reserve
Ratio hike of 75 basis points by the Reserve Bank of India last month.

• Net profit of Rs. 2,949 crores, an increase of 31% over the previous
year has been recorded.

• Total deposits were Rs. 1,67,404 crores, an increase of 17.2 % over

the previous year.

• HDFC Bank’s network has expanded with 1,725 branches and 4,232
ATM’s in 779 cities as on March 31, 2010.

25
 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'

As on 30th June, 2010 the authorized share capital of the Bank is Rs. 550
crore. The paid-up capital as on said date is Rs. 459,69,07,030/-
(45,96,90,703 equity shares of Rs. 10/- each). The HDFC Group holds 23.63
% of the Bank's equity and about 17.05 % of the equity is held by the ADS
Depository (in respect of the bank's American Depository Shares (ADS)
Issue). 27.45% of the equity is held by Foreign Institutional Investors (FIIs)
and the Bank has about 4,33,078 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.

26
 Capital structure

Paid Up
From To Class Of Authorized Issued Paid Up Shares Face Paid Up
Year Year Share Capital Capital (Nos) Value Capital
Equity
2009 2010 Share 550.00 457.74 457743272 10 457.74
Equity
2008 2009 Share 550.00 425.38 425384109 10 425.38
Equity
2007 2008 Share 550.00 354.43 354432920 10 354.43
Equity
2006 2007 Share 450.00 319.39 319389608 10 319.39
Equity
2005 2006 Share 450.00 313.14 313142408 10 313.14
Equity
2004 2005 Share 450.00 309.88 309875308 10 309.88
Equity
2003 2004 Share 450.00 284.79 284791713 10 284.79
Equity
2002 2003 Share 450.00 282.05 282045713 10 282.05
Equity
2001 2002 Share 450.00 281.37 281374613 10 281.37
Equity
2000 2001 Share 300.00 243.60 243596261 10 243.60
Equity
1999 2000 Share 300.00 243.28 243278261 10 243.28

27
 Paid Up
From To Class Of Authorized Issued Paid Up Shares Face Paid Up
Year Year Share Capital Capital (Nos) Value Capital
Equity
1995 1999 Share 300.00 200.00 200000000 10 200.00
Equity
1994 1995 Share 300.00 110.00 110000000 10 110.00

DIVIDEND POLICY

28
HDFc Bank has had a consistent dividend policy that balances the dual
objectives of appropriately rewarding shareholders through dividends and
retaining capital, in order to maintain a healthy capital adequacy ratio to
support future growth. It has had a consistent track record of moderate but
steady increases in dividend declarations over its history with the dividend
payout ratio ranging between 20% and 25%. Consistent with this policy, and
in recognition of the Bank's overall performance during this financial year, the
directors are pleased to recommend a dividend of Rs.12 per share for the
financial year ended March 31, 2010, as against Rs.10 per share for the year
ended March 31, 2009.
Details of dividend declared by bank
2009-2010 120%
2008-2009 100%
2007-2008 85%
2006-2007 70%
2005 - 2006 55%
2004 - 2005 45%
2003 - 2004 35%
2002 - 2003 30%
2001 - 2002 25%
2000 - 2001 20%
1999 - 2000 16%
1998 - 1999 13%
1997 - 1998 10%
1996 - 1997 8%

BUSINESSES

29
HDFC Bank offers a wide range of commercial and transactional banking
services and treasury products to wholesale and retail customers. The bank
has three key business segments:

Wholesale Banking Services

The Bank's target market ranges from large, blue-chip manufacturing
companies in the Indian corporate to small & mid-sized 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 structured
solutions, which combine cash management services with vendor and
distributor finance for facilitating superior supply chain management for
its corporate customers. Based on its superior product delivery / service
levels and strong customer orientation, the Bank has made significant
inroads into the banking consortia of a number of leading Indian
corporates including multinationals, companies from the domestic
business houses and prime public sector companies. It is recognised as a
leading provider of cash management and transactional banking solutions
to corporate customers, mutual funds, stock exchange members and
banks.

Retail Banking Services

The objective of the Retail Bank is to provide its target market customers
a full range of financial products and banking services, giving the
customer a one-stop window for all his/her banking requirements. The
products are backed by world-class service and delivered to customers
through the growing branch network, as well as through alternative
delivery channels like ATMs, Phone Banking, NetBanking and Mobile
Banking.

The HDFC Bank Preferred program for high net worth individuals, the
HDFC Bank Plus and the Investment Advisory Services programs have
been designed keeping in mind needs of customers who seek distinct
financial solutions, information and advice on various investment
avenues. The Bank also has a wide array of retail loan products including

30
Auto Loans, Loans against marketable securities, Personal Loans and
Loans for Two-wheelers. It is also a leading provider of Depository
Participant (DP) services for retail customers, providing customers the
facility to hold their investments in electronic form.

HDFC Bank was the first bank in India to launch an International Debit
Card in association with VISA (VISA Electron) and issues the
Mastercard Maestro debit card as well. The Bank launched its credit card
business in late 2001. By March 2010, the bank had a total card base
(debit and credit cards) of over 14 million. The Bank is also one of the
leading players in the “merchant acquiring” business with over 90,000
Point-of-sale (POS) terminals for debit / credit cards acceptance at
merchant establishments. The Bank is well positioned as a leader in
various net based B2C opportunities including a wide range of internet
banking services for Fixed Deposits, Loans, Bill Payments, etc.

Treasury
Within this business, the bank has three main product areas - Foreign
Exchange and Derivatives, Local Currency Money Market & Debt
Securities, and Equities. With the liberalisation of the financial markets
in India, corporates need more sophisticated risk management
information, advice and product structures. These and fine pricing on
various treasury products are provided through the bank's Treasury team.
To comply with statutory reserve requirements, the bank is required to
hold 25% of its deposits in government securities. The Treasury business
is responsible for managing the returns and market risk on this
investment portfolio.

31
 RUPEE EARNED AND RUPEE
SPENT
It is more important for every organization to know about from where
money is earned and where money is spent. And balanced between these
two things rupee earned and rupee spent are required for smooth running of
business and financial soundness. This type of watch can control and
eliminate the unnecessary spending of business. In this diagram it include
both things from where Bank earned Rupee and where to spent as on March
2010.

RUPEE EARNED
Interest from Advances

Profit on Investments

Commission,
Exchange & Brokerage
Other Interest Income

FX & Derivative Income

Interest from
Investments
Others

Interest from Advances 60.55%

Profit on Investments 1.73%
Commission, Exchange & Brokerage 14.17%
Other Interest Income 0.47%
FX & Derivative Income 3.12%
Interest from Investments 19.93%
Others 0.04%

32
 RUPEE SPENT
Interest expense

Tax

Provisions

Dividend & Tax on

Dividend
Transfer to Reserve

Operating Expenses

Interest expense 41.19%

Tax 7.09%
Provisions 11.32%
Dividend & Tax on Dividend 3.39%
Transfer to Reserve 6.51%
Operating Expenses 30.49%

HDFC BANK earned from the ‘Interest from Advances’ 60.55 %, ‘Interest
from Investment’ 19.93 %, bank earned commission exchange and
brokerage of 14.17 %. These are the major earning sources of the bank.
Bank also earned from the Forex and Derivatives and some other Interest
Income which were 3.12% and 0.47% respectively.

Bank spent 41.19 % on Interest Expense, 30.49 % on Operating Expense

and 11.32 % on Provision. Bank also spent Dividend and Tax on dividend.
Transfer to reserve was 6.51%.

As we discuss above that balancing is must between these two for every
organization especially in the era of globalization where there are stiff
competition among various market players.

33
 MANAGEMENT OF HDFC BANK
Mr. C.M. Vasudev has been appointed as the Chairman of the Bank with
effect from 6th July 2010 subject to the approval of the Reserve Bank of
India and the shareholders. 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.

34
 COMPOSITION OF BOARD
The Composition of the Board of Directors of the Bank is governed by the
Companies Act, 1956, the Banking Regulation Act, 1949 and the listing
requirements of the Indian Stock Exchanges where the securities issued by
the Bank are listed. The Board has a strength of eleven (11) Directors as on
March 31, 2010. All Directors other than Mr. Aditya Puri, Mr. Harish
Engineer and Mr. Paresh Sukthankar are non-executive directors. The Bank
has five independent directors and six non-independent directors. The Board
consists of eminent persons with considerable professional expertise and
experience in banking, finance, agriculture, small scale industries and other
related fields.
None of the Directors on the Board is a member of more than ten (10)
Committees and Chairman of more than five (5) Committees across all the
companies in which he/she is a Director. All the Directors have made
necessary disclosures regarding Committee positions occupied by them in
other companies.

• Mr. Jagdish Capoor, Mr. Keki Mistry, Mrs. Renu Karnad, Mr. Aditya
Puri, Mr. Harish Engineer and Mr. Paresh Sukthankar are non-
independent Directors on the Board.

• Mr. Arvind Pande, Mr. Ashim Samanta, Mr. Gautam Divan, Mr. C.
M. Vasudev and Dr. Pandit Palande are independent directors on the
Board.

• Mr. Keki Mistry and Mrs. Renu Karnad represent HDFC Limited on
the Board of the Bank.

• The Bank has not entered into any materially significant transactions
during the year, which could have a potential conflict of interest
between the Bank and its promoters, directors, management and/or
their relatives, etc. other than the transactions entered into in the
normal course of business. The Senior Management have made
disclosures to the Board confirming that there are no material,
financial and/or commercial transactions between them and the Bank
which could have potential conflict of interest with the Bank at large.

35
 • None of the directors are related to each other.
HUMAN RESOURCES
The Bank’s staffing needs continued to increase during the year particularly
in the retail banking businesses in line with the business growth. Total
number of employees increased from 14878 as of March 31, 2006 to 21477
as of March 31, 2007. The total numbers of employees of HDFC bank were
51,888 as of March 31, 2010.

The Bank continued to focus on training its employees, both on-the-job as

well as through training programs conducted by internal and external
faculty. The Bank has consistently believed that broader employee
ownership of its shares has a positive impact on its performance and
employee motivation.

HDFC Bank lists ‘people’ as one of its stated core values. The Bank
believes in empowering its employees and constantly takes various measures
to achieve this.

HDFC bank believes that the ultimate identity and success of their bank will
reside in the exceptional quality of their people and their extraordinary
efforts. For this reason, they are committed to hiring, developing, motivating
and retaining the best people in the industry.

36
 Functional Departments of the

Organization
The functional departments of the organization consist of the HR
department, the administrative department and the executive department.
The HR department of the organization consists of the people who employ
the Persons who they think would be able to do justice with the job handled.
The administrative department of the organization consists of the director
and the manager of the organization. They preside the organization and
control all the operations of the organization such that the organization could
run in a smooth and effective manner. The executive department of the
organization consists of the various employees who execute the job
undertaken by them. The employees consist of the team leaders, the
corporate financial consultants. The telecallers, various staffs and junior
staffs who are the main structural framework of the organization. The
organization thus runs with the effective coordination of the HR department,
the administrative department and the executive department such that the
supervisors of the organization preside over the subordinate employees to
give them directions about fulfilling their works most efficiently and
effectively.

H R Department:

HDFC Human Resources department plans and direct for the employee
population as well as they are having the following functions as:-
 Hiring
 Promotions
 Reassignments
 Position classification and grading
 Salary determination
 Performance appraisal review and processing
 Personnel data entry and records maintenance
 Policy development
 Work permitting immigration visa program

37
  Workers’ compensation

Finance Department:

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

Marketing Consultancy Department:

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

Research Department:

The Research Department is having the capacity to act through four

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

Technical Consultancy Department:

The Technical Consultancy Department is responsible for technical
appraisal of industrial projects. The mission of the division is aimed towards
the verification of the technical viability of industrial projects and assisting
the Fund management in taking the decisions that require technical

38
expertise. Moreover, it is responsible for conducting technical studies and
rendering technical consultancy to certain industrial sectors for the purposes
of investigating modern technologies and productivity levels for local
manufacturing plants.

DISTRIBUTION NETWORK
HDFC Bank is headquartered in Mumbai. The Bank at present has an
enviable network of 1,725 branches spread in 780 cities across India. The
Bank also has 4,393 networked ATMs across these cities.

HDFC Bank’s rapidly expanding network is one element that has enabled to
increase their reach to their customers. Consider this, in March 2008 the
number of HDFC Bank branches stood at 761, today they have more than
doubled their strength to over 1,700. Complemented by more than 4,200
ATM’s, their network is reaching further than ever before.

4500
4000
3500
3000
Cities
2500
Branches
2000
ATM
1500
1000
500
0
2008 2009 2010

2008 2009 2010

Cities 327 528 779
Branches 761 1412 1725
ATM 1977 3295 4232

39
 TECHNOLOGY USED IN HDFC
BANK
Private sector banks are today using the latest technology for the different
transaction of day to day banking life. As we know, that Information
Technology plays the vital role in the each and every industries and gives
the optimum return from the limited resources. Banks are service industries
and today IT gives the innovative Technology application to Banking
industries. HDFC BANK is the leader in the industries and today IT and
HDFC Bank together combined they reached the sky. New technology
changed the mind of the customers and changed the queue concept from the
history banking transaction. Today there are different channels are available
for the banking transactions.

HDFC Bank has always prided itself on a highly automated environment, be

it in terms of information technology or communication systems. HDFC
Bank operates in a highly automated environment in terms of information
technology and communication systems. All the bank's branches have online
connectivity, which enables the bank to offer speedy funds transfer facilities
to its customers. Multi-branch access is also provided to retail customers
through the branch network and Automated Teller Machines (ATMs).

The Bank has made substantial efforts and investments in acquiring the best
technology available internationally, to build the infrastructure for a world-
class bank. The Bank's business is supported by scalable and robust systems,
which ensure that their clients always get the finest services they offer. The
Bank has prioritized its engagement in technology and the internet as one of
its key goals and has already made significant progress in web enabling its
core businesses. In each of its businesses, the Bank has succeeded in
leveraging its market position, expertise and technology to create a
competitive advantage and build market share.

40
The bank makes use of its up-to-date technology, along with market position
and expertise, to create a competitive advantage and build market share.

 ATMS

During the year the Bank has introduced faster ATM’s which enables a
customer a faster servicing experience by reducing the customer clicks by
40%, through the use of advanced technology in the ATM’s, a first in the
Indian market.

 Mobile Banking

HDFC Bank customers can access their bank account and conduct a host of
banking transactions through mobile, with HDFC’S unique Mobile Banking
service. Customers can check account level information such as balance
details, mini statement, cheque status as well as carry out financial
transactions such as Funds Transfer using HDFC Bank Mobile Banking
service.

What can one do using HDFC Bank Mobile Banking?

Using HDFC Banks Mobile Banking service, one can avail of a host of
features at finger tips :

• Perform funds transfers

• Get your balance details
• Obtain your last 3 transaction details

41
 • Request a cheque book
• Stop a cheque payment
• Enquire cheque status
• Request an account statement
• Get Fixed Deposit details
• Request for I-PIN generation

 HDFC NET BANKING

HDFC Net banking is the internet banking service which provides customer
the information of accounts and let them manage their account online from
anywhere, anytime. It avoids the long queues and lots of paper work. With
HDFC bank’s Net banking one can manage account by a click of a mouse.
The HDFC Netbanking uses good infrastructure and standard technologies
to provide safe and secure service to its clients.

Services offered through HDFC Net banking

• Funds transfer between accounts

• Demand Draft request
• Bills payment
• Cheque Book order
• Account Statement and View Balances
• Online Fixed deposits
• Request to stop payment of a cheque
• Third Party transfer

 PHONE BANKING

42
PhoneBanking services are a combination of IVR and Agent offering,
depending on the type of transaction. For all transactions that cannot be
completed on the IVR such as reporting loss of cards, logging complaints,
requests & queries, PhoneBanker-assisted services are available

Services via Phone Banking:

• Check account balance

• Enquire on the cheque status
• Order a Cheque Book / Account Statement
• Stop Payment
• Loan Related queries
• Demat Related Queries
• Open a Fixed deposit
• transfer Funds between accounts
• Pay your bills
• Re-generation requests for ATM / Debit card PIN / NetBanking
IPIN,etc
• Report loss of your ATM / Debit / Prepaid Card

43
HDFC BANK PRODUCTS AND
CUSTOMER SEGMENTS

PERSONAL BANKING

Loan Product Deposit Product Investment & Insurance

• Auto Loan • Saving a/c • Mutual Fund

• Loan Against • Current a/c • Bonds
Security • Fixed deposit • Knowledge Centre
• Loan Against

44
 Property • Demat a/c • Insurance
• Personal loan • Safe Deposit • General and Health
• Credit card Lockers Insurance
• 2-wheeler loan • Equity and
• Commercial Derivatives
vehicles • Mudra Gold Bar
finance
• Home loans
• Retail business
banking
• Tractor loan
• Working
Capital
Finance
• Construction
Equipment
Finance
• Health Care
Finance
• Education
Loan
• Gold Loan

Cards Payment Access To Bank

Services

• Credit Card • Net Safe • Net Banking

• Debit Card • Merchant • One View
• Prepaid Card • Prepaid Refill • Insta Alert
• Bill pay • Mobile Banking
• Visa Bill pay • ATM
• InstaPay • Phone Banking
---------------------------- • Direct Pay • Email Statements
---- • Visa Money • Branch Network
Forex Services Transfer
----------------------------
• e–Monies
----
Electronic
• Product & Funds Transfer

45
 Services • Online
• Trade Services Payment of
• Forex service Direct Tax
Branch Locater
• RBI Guidelines

WHOLESALE BANKING

Corporate Small and Medium Financial Institutions

Enterprises and Trusts

• Funded • Funded Services BANKS

Services • Non Funded • Clearing Sub-
• Non Funded Services Membership
Services • Specialized • RTGS –
• Value Added Services submembership
Services • Value added • Fund Transfer
• Internet services • ATM Tie-ups
Banking • Internet Banking • Corporate Salary a/c

46
 • Tax Collection
Financial Institutions

Mutual Funds

Stock Brokers

Insurance Companies

Commodities
Business

Trusts

NRI SERVICES

Accounts & Deposits Remittances

• Rupee Saving a/c • North America

• Rupee Current a/c • UK
• Rupee Fixed Deposits • Europe
• Foreign Currency Deposits • South East Asia
• Accounts for Returning • Middle East
Indians • Africa
• Others
Quick remit
India Link
Cheque Lockbox
Telegraphic/ Wire Transfer
Funds Transfer
Cheques/DDs/TCs

47
 Investment & Insurances Loans

• Mutual Funds • Home Loans

• Insurance • Loans Against Securities
• Private Banking • Loans Against Deposits
• Portfolio Investment • Gold Credit Card
Scheme

Payment Services Access To Bank

• NetSafe • Net Banking

• BillPay • One View
• InstaPay • InstaAlert
• DirectPay • ATM
• Visa Money • Phone Banking
• Online Donation • Email Statements
• Branch Network

SUBSIDIARY COMPANIES
HDFC Bank has two subsidiaries,
 HDFC Securities Limited (HSL)
 HDB Financial Services Limited (HDBFS)

HSL is primarily in the business of providing brokerage services through the

internet and other channels. HDBFS is a non-deposit taking non bank
finance company (NBFC), for the establishment of which the Bank received
Reserve Bank of India (RBI) approval during the fiscal year ended March
31, 2008

HDFC Securities, a trusted financial service provider promoted by HDFC

Bank and JP Morgan Partners and their associates, is a leading stock broking
company in the country, serving a diverse customer base of institutional and
retail investors.

48
HSL provides investors a robust platform to trade in Equities in NSE and
BSE, and derivatives in NSE. They support their clients with the highest
standards of service, convenience and hassle-free trading tools.

Their research team tracks the economy, industries and companies to

provide the latest information and analysis. They offer financial information,
analysis, investment guidance, news & views, and is designed to meet the
requirements of everyone from a beginner to a well-informed trader.

AWARDS AND ACHIEVEMENTS –

2010

During the year 2010, awards and recognitions were conferred on HDFC
Bank by leading domestic and international organizations.
It is extremely gratifying for HDFC Bank, that their efforts towards
providing customer convenience have been appreciated both nationally and
internationally.

AWARDS CATEGORY
BEST PRIVATE SECTOR BANK
NDTV Business
Leadership Awards
2010
BEST BOTTOM-LINE I.T. Category
MIS Asia IT Excellence
Award 2010

49
Dun & Bradstreet  Overall Best Bank
Banking Awards 2010  Best Private Sector Bank
 Best Private Sector Bank in SME Financing
HDFC Bank MD, Mr. Aditya Puri among "Asian Captains of
Institutional Investor Finance 2010"
Magazine Poll
Winner - 1) IT Infrastructure
IDRBT Technology 2) Use of IT within the Bank
2009 Awards Runners-up - IT Governance (Large Banks)
Highly Commended - Asia Pacific HDFC Bank
ACI Excellence Awards
2010
Best performer in the Banking category
FE-EVI Green Business
Leadership Award
Model Bank Award
Celent's 2010 Banking
Innovation Award
Customer Responsiveness Award - Banking & Financial Services
Avaya Global Connect category
2010
HDFC Bank at 632nd position and among 130 Global High
Forbes Top 2000 Performers
Companies
Financial Express -
 Best New Private Sector Bank
Ernst & Young Survey  Best in Growth
2009-10  Best in strength

Asian Banker
 Best Retail Bank in India
Excellence Awards  Excellence in Automobile Lending
2009  Bank M&A Integration
 Technology Implementation
Best Cash Management Bank in India
The Asset Triple A
Awards

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

Euro money Private 2) Best Private Banking Services overall (moved up from No. 2
Banking and Wealth last year)
Management Poll 2010

Innovation in Branch Operations - Server Consolidation Project

Financial Insights
Innovation Awards
2010

50
 Best Trade Finance Provider in India for 2010
Global Finance Award
1) Best Risk Management Initiative and
2 Banking Technology 2) Best Use of Business Intelligence.
Awards 2009

2nd Prize
SPJIMR Marketing
Impact Awards (SMIA)
2010

Listed in top 10 Best Employers in the country

Business Today Best
Employer Survey

SWOT ANALYSIS

STRENGTH WEAKNESSES
 Right strategy for the right  Some gaps in range for
products. certain sectors.

 Superior customer service  Customer service staff

vs. competitors. needs training.

 Great Brand Image  Processes and systems, etc

 Products have required  Management cover

accreditations. insufficient.

 High degree of customer  Sectoral growth is

satisfaction. constrained by low
unemployment levels and

51
 Good place to work competition for staff

 Lower response time with

efficient and effective
service.

 Dedicated workforce
aiming at making a long-
term career in the field.

Opportunities Threats

 Profit margins will be good.  Legislation could impact.

 Could extend to overseas  Great risk involved

broadly.
 Very high competition
 New specialist applications. prevailing in the industry.

 Could seek better customer  Vulnerable to reactive attack

deals. by major competitors.

 Fast-track career development  Lack of infrastructure in rural

opportunities on an industry- areas could constrain
wide basis. investment.

 An applied research centre to  High volume/low cost market

create opportunities for is intensely competitive.

52
 developing techniques to
provide added-value services.

CORPORATE GOVERNANCE

The Bank believes in adopting and adhering to best recognized corporate

governance practices and continuously benchmarking itself against each
such practice. The Bank understands and respects its fiduciary role and
responsibility to shareholders and strives hard to meet their expectations.
The Bank believes that best board practices, transparent disclosures and
shareholder empowerment are necessary for creating shareholder value.

The Bank has infused the philosophy of corporate governance into all its
activities. The philosophy on corporate governance is an important tool for
shareholder protection and maximisation of their long term values. The
cardinal principles such as independence, accountability, responsibility,
transparency, fair and timely disclosures, credibility etc. serve as the means
for implementing the philosophy of corporate governance in letter and spirit.

53
Corporate governance rating

The bank was amongst the first four companies, which subjected itself to a
Corporate Governance and Value Creation (GVC) rating by the rating
agency, The Credit Rating Information Services of India Limited (CRISIL).
The rating provides an independent assessment of an entity's current
performance and an expectation on its "balanced value creation and
corporate governance practices" in future. The bank has been assigned a
'CRISIL GVC Level 1' rating for the second consecutive year, which
indicates that the bank's capability with respect to wealth creation for all its
stakeholders while adopting sound corporate governance practices is the
highest.

ARTICLES

HDFC Bank hits the top of the

chart; ICICI left behind
Apr 19, 2010

HDFC Bank, the second largest private retail bank of the country has reached the pinnacle in
the segment thereby displacing ICICI Bank from its long held position. The recovery in demand
condition and positive growth in the economy has enabled the bank to increase the figures of
its loan book in home, car and two wheeler segment.

The month of March recorded lending worth Rs. 4000 crore for the bank which is almost double
than the amount disbursed by the bank last April. The growth in loans has been in almost all
segments like automobile loans, commercial vehicles, personal and home loans, two-wheeler
loans and credit cards.

The retail lending of the bank in March was marked by credit worth Rs 1,300 crore in auto
loans, Rs 1,200 crore in home loans, Rs 400 crore in the form of commercial vehicle loans and
Rs 300 crore of construction equipment loans. Disbursements in the personal loan segment
amounted to Rs 600 crore.

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"This has been the best ever month for us. In March itself, we disbursed retail loans of Rs 4,000
crore and this comes on the back of January and February where the average disbursements
were at around Rs 3,500 each. Each of our business in the retail side is profitable and we have
shown the highest-ever profit in the retail asset business," said Pralay Mondal, country head -
retail assets & credit cards, HDFC Bank.

The bank has shown a growth in lending when its counterparts are in a foray to move away
from retail lending atleast for the time being owing to bad credit from the unsecured loan
segment.

The loan disbursement scenario for ICICI Bank which has till now been the market leader has
been in a way that the bank has lent out home loans aggregating Rs 700 crore, auto loans of
Rs 300 crore, commercial vehicle loans of Rs 200 crore and loans against property of close to
Rs 150 crore, as per officials of the banking industry.

HDFC Bank in Mumbai looted

of Rs.26 lakh
Submitted by Raman Iyer on Mon, 08/30/2010 - 07:09

Mumbai, Aug 30 :

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Armed men looted about Rs. 26 lakh at gunpoint from a
branch of the HDFC Bank in suburban Borivli area here
Monday morning, officials said.

The armed heist took place around 9.30 a. m. at the branch

located on Shimpoli Road. "We are awaiting more details,"
said a police official from the Borivali police station.

"Five armed men held the security guards at gunpoint and

entered the bank. They made away with Rs. 26 lakh," said
an HDFC spokesperson.

The bank had just opened. "There were a few customers in

the bank, but they were not hurt," the spokesperson said.

BIBLIOGRAPHY
 http://www.scribd.com/doc/4374980/PROJECT-ON-
HDFC-BANK

 http://www.hdfc.com/others/about-hdfc.asp

 http://www.hdfcbank.com/aboutus/cg/annual_reports.
htm

 http://www.moneycontrol.com/india/stockpricequote/b
anksprivatesector/hdfcbank/HDF01

 http://www.hdfcbank.com/personal/default.htm

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  SOURCE OF THE ARTICLE:

http://www.rupeetimes.com/news/home_loans/hdfc_bank_
hits_the_top_of_the_chart_icici_left_behind_3480.html

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