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Bank is a business that provides financial services, usually for profit. Traditional banking Services include receiving deposits of money, lending money and processing transactions. A commercial bank accepts deposits from customers and in turn makes loans based on those deposits. Some banks (called Banks of issue) issue banknotes as legal tender. Many banks offer ancillary financial services to make additional profit; for example: selling insurance products, investment products or stock broking. Banking, the business of providing financial services to consumers and businesses. The basic services a bank provides are checking accounts, which can be used like money to make payments and purchase goods and services; savings accounts and time deposits that can be used to save money for future use; loans that consumers and businesses can use to purchase goods and services; and basic cash management services such as check cashing and foreign currency exchange. Four types of banks specialize in offering these basic banking services: commercial banks, savings and loan associations, savings banks, and credit unions. A broader definition of a bank is any financial institution that receives, collects, transfers, pays, exchanges, lends, invests, or safeguards money for its customers. This broader definition includes many other financial institutions that are not usually thought of as banks but which nevertheless provide one or more of these broadly defined banking services. These institutions include finance companies, investment companies, investment banks, insurance companies, pension funds, security brokers and dealers, mortgage companies, and real estate investment trusts. Banking services are extremely important in a free market economy such as that found in Canada and the United States. Banking services serve two primary purposes. First, by supplying customers with the basic mediums-of-exchange (cash, checking accounts, and credit cards), banks play a key role in the way goods and services are purchased. Without these familiar methods of payment, goods could only be exchanged by barter extremely time-consuming and inefficient. This is

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Second, by accepting money deposits from savers and then lending the money to borrowers, banks encourage the flow of money to productive use and investments. This in turn allows the economy to grow. Without this flow, savings would sit idle in someones safe or pocket, money would not be available to borrow, people would not be able to purchase cars or houses, and businesses would not be able to build the new factories the economy needs to produce more goods and grow. Enabling the flow of money from savers to investors is called financial intermediation, and it is extremely important to a free market economy.

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Banking in India originated in the first decade of 18th century with the general bank of India coming into existence in 1786. This was followed by bank of Hindustan. Both these banks are now defunct. The oldest bank in existence in India is the state bank of India being established as the bank of Bengal in Calcutta in June 1806. a couple of decades later, foreign banks like credit Lyonnais started their Calcutta operations in the 1850s. at that point of time, Calcutta was the most active trading port, mainly due to the trade of the British empire and the due to which banking activity took roots there and prospered. The first fully Indian owned bank was the Allahabad bank, which was established in 1865. By the 1900s, the market expanded with the establishment of banks such as Punjab national bank, in 1895 in Lahore and bank of India, in 1906, in Mumbai both of which were founded under private ownership. The reserve bank of India formally took on the responsibility of regulating the Indian banking sector from 1935. After Indias independence in 1947, the reserve bank was nationalized and given broader powers.

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The economic functions of banks include:


Issue of money, in the form of banknotes and current accounts subject to cheque or payment at the customer's order. These claims on banks can act as money because they are negotiable and/or repayable on demand, and hence valued at par and effectively transferable by mere delivery in the case of banknotes, or by drawing a cheque, delivering it to the payee to bank or cash.


Netting and settlement of payments -- banks act both as collection agent and paying agents for customers, and participate in inter-bank clearing and settlement systems to collect, present, be presented with, and pay payment instruments. This enables banks to economies on reserves held for settlement of payments, since inward and outward payments offset each other. It also enables payment flows between geographical areas to offset, reducing the cost of settling payments between geographical areas.


Credit intermediation banks borrow and lend back-to-back on their own account as middle men


Credit quality improvement

banks lend money to ordinary commercial and

personal borrowers (ordinary credit quality), but are high quality borrowers. The improvement comes from diversification of the bank's assets and the bank's own capital which provides a buffer to absorb losses without defaulting on its own obligations. However, since banknotes and deposits are generally unsecured, if the bank gets into difficulty and pledges assets as security to try to get the funding it needs to continue to operate, this puts the note holders and depositors in an economically subordinated position.

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Maturity transformation -- banks borrow more on demand debt and short term debt, but provide more long term loans. Bank can do this because they can aggregate issues (e.g. accepting deposits and issuing banknotes) and redemptions (e.g. withdrawals and redemptions of banknotes), maintain reserves of cash, invest in marketable securities that can be readily converted to cash if needed, and raise replacement funding as needed from various sources because they have a high and more well known credit quality than most other borrowers

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The next significant milestone in Indian banking occurred on July 19, 1969 when the Indira Gandhi government nationalized the 14 largest commercial banks. A second nationalization of 6 more commercial banks followed in 1980. The stated reason for the nationalization was to give the government more control of the credit delivery. After this, until the 1990s, the nationalized banks grew at a leisurely pace of around 4% closer to the average growth rate of the Indian economy.

In the early 1990s the Narasimha rao government embarked on a policy of liberalization and gave licenses to a small no of private banks, which came to be known as new generation tech-savvy banks, which included banks such as UTI (the first of such new generation banks to be setup), ICICI bank and HDFC bank. This move along with the rapid growth in the economy of India, kick started the banking sector in India which has seen rapid growth with strong contribution from all the three sectors of banks, namely government banks, private banks and foreign banks. The next stage for the Indian banking has been setup with the proposed relaxation in the norms for foreign direct investment, where all foreign investors in banks may be given voting rights which could exceeds the present cap of 10%. The new policy shook the banking sector in India completely. Bankers, till this time were used to the 4-6-4 method (borrow at 4% lend at 6% go home at 4) of functioning. The new wave ushered in a modern outlook and tech savvy methods of working for traditional banks. All this led to retail boom in India.

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SBI Group: state bank of India with its seven associates banks command the largest banking resource in India. SBI and its associates banks are: 1 2 3 4 5 6 7 8 State Bank of India State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Indore State Bank of Mysore State Bank of Patiala State Bank of Saurashtra State Bank of Travancore

After the amalgamation of new bank of India with Punjab national bank, currently there are 18 nationalized banks in India: > Allahabad bank > Andhra bank > Bank of Baroda > Bank of Maharashtra > Canara bank > Central bank of India > Corporation bank > Dena bank > Indian bank > Syndicate Bank > Union Bank of India > United Bank of India > UCO Bank > Vijaya Bank > Indian Overseas Bank > Oriental Bank of Commerce > Punjab and Sind Bank > Punjab National bank

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Bank of Rajasthan Bharat Overseas Bank Catholic Syrian Bank Centurion Bank of Punjab Dhanalaxmi Bank Federal Bank HDFC Bank ICICI Bank IDBI Bank ING Vysya Bank Jammu & Kashmir Bank Karnataka Bank Karur Vysya Bank HDFC Mahindra Bank South Indian Bank Tamilnad Indian Bank UTI Bank Indusind Bank

ABN AMRO Bank Abu Dhabi Commercial Bank Ltd Bank of Ceylon BNP Paribas Bank Citi Bank China Trust Commercial Bank Deutshce Bank HSBC PMorgan Chase Bank Standard Chartered Bank Scotia Bank Taib Bank

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Banking law is based on a contractual analysis of the relationship between the bank and the customer. The definition of bank is given above, and the definition of customer is any person for whom the bank agrees to conduct an account. The law implies rights and obligations into this relationship as follows: The bank account balance is the financial position between the bank and the customer, when the account is in credit, the bank owes the balance to the customer, when the account is overdrawn, the customer owes the balance to the bank. The bank engages to pay the customer's cheques up to the amount standing to the credit of the customer's account, plus any agreed overdraft limit. The bank may not pay from the customer's account without a mandate from the customer, e.g. a cheque drawn by the customer. The bank engages to promptly collect the cheques deposited to the customer's account as the customer's agent, and to credit the proceeds to the customer's account. The bank has a right to combine the customer's accounts, since each account is just an aspect of the same credit relationship. The bank has a lien on cheques deposited to the customer's account, to the extent that the customer is indebted to the bank. The bank must not disclose the details of the transactions going through the customer's account unless the customer consents, there is a public duty to disclose, the bank's interests require it, or under compulsion of law. The bank must not close a customer's account without reasonable notice to the customer, because cheques are outstanding in the ordinary course of business for several days.

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Banking channel
Banks offer many different channels to access their banking and other services:

A branch, banking centre or financial centre is a retail location where a bank or financial institution offers a wide array of face-to-face service to its customers
ATM is a computerized telecommunications device that provides a financial

institution's customers a method of financial transactions in a public space without the need for a human clerk or bank teller. Most banks now have more ATMs than branches, and ATMs are providing a wider range of services to a wider range of users. For example in Hong Kong, most ATMs enable anyone to deposit cash to any customer of the bank's account by feeding in the notes and entering the account number to be credited. Also, most ATMs enable card holders from other banks to get their account balance and withdraw cash, even if the card is issued by a foreign bank. Mail is part of the postal system which itself is a system wherein written documents typically enclosed in envelopes, and also small packages containing other matter, are delivered to destinations around the world. This can be used to deposit cheques and to send orders to the bank to pay money to third parties. Banks also normally use mail to deliver periodic account statements to customers. Telephone banking is a service provided by a financial institution which allows its customers to perform transactions over the telephone. This normally includes bill payments for bills from major billers (e.g. for electricity). Online banking is a term used for performing transactions, payments etc. over the Internet through a bank, credit union or building society's secure website

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Registered Office:

Corporate Office:

Address HDFC Bank House Senapati Bapat Marg Lower Parel Mumbai Maharashtra 400013. Phone: 91-022-56521000 Fax: 91-022-24960737

Address Ramon House, 169, Back Bay Reclamation H T Parekh Marg Church Gate Mumbai 400 020.

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If ever there was a man with a mission it was Hasmukhbhai Parekh, Founder and Chairman-Emeritus, of HDFC Group 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

Manager of the newly formed Industrial Credit and Investment Corporation of India (ICICI). He rose to become Chairman and continued so till 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. Mr. H.T. PAREKH is conferred the Padma Bhushan by the Government of India in the year 1992.

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Background and Objective of HDFC group

Background 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. Business Objectives The primary objective of HDFC is to enhance residential housing stock in the country through the provision of housing finance in a systematic and professional manner, and to promote home ownership. Another objective is to increase the flow of resources to the housing sector by integrating the housing finance sector with the overall domestic financial markets... Organizational Goals HDFCs main goals are to a) Develop close relationships with individual households, b) Maintain its position as the premier housing finance institution in the country, c) Transform ideas into viable and creative solutions, d) Provide consistently high returns to shareholders, and e) To grow through diversification by leveraging off the existing client base.

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Enterprises under common control of the promoter:

HDFC Bank Ltd. HDFC Asset Management Company Ltd. HDFC Standard Life Insurance Company Ltd. HDFC Developers Ltd. HDFC Holdings Ltd. HDFC Investments Ltd. HDFC trustee Company Ltd. HDFC Finance Ltd. HDFC Chubb General Insurance Company Ltd. HDFC Venture Capital Ltd.

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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.

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Mr. Capoor holds 300 equity shares in the Bank as on March 31, 2008.


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.

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1) Mr. Aditya Puri 2) Mr. Keki Mistri 3) Mr. Vinit Jain 4) Mrs. Venu kamad 5) Mr. Arvind Pande 6) Mr. Ashim Samanta 7) Mr. C.M.Vasudev 8) Mr. Gautam Divan 9) Dr. Pandit Pande 10) Mr. Harish Engineer 11) Mr. Paresh Sukthankar M.D DIRECTOR DIRECTOR DIRECTOR DIRECTOR DIRECTOR DIRECTOR DIRECTOR DIRECTOR Executive Director Executive Director

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The Housing Development Finance Corporation Limited (HDFC Ltd) was amongst the first to set up a bank in the private sector. The bank was incorporated on 30th August 1994 in the name of HDFC BANK Limited with its registered office in Mumbai. We commenced operations as a Scheduled Commercial Bank on 16th January 1995. The bank has grown consistently and is now amongst the leading players in the industry. In a milestone transaction in the Indian banking industry, times bank was merged with HDFC Bank Ltd, effective February 26, 2000. The amalgamation added significant value to HDFC Bank in terms of increased branch network, expanded geographic reach, enhanced customer base and skilled manpower. On 20th July 2001, our banks American depository shares began trading on the New York stock exchange under the symbol HDB. Subsequent to that the bank came out with add on ADS offering on 21ST January 2005. 19.46% of the equity shares of the bank are held in ADS.

Pr9file Profile HDFC Bank was incorporated in August 1994, and, currently has an nationwide network of 761 Branches and 1977 ATM's in 327 Indian towns and cities. The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry in
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1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995.

HDFC is India's premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1977, the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader in mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. With its experience in the financial markets, a strong market reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment. SENIOR MANAGEMENT TEAM Mr. A Parthasarthy Mr. A. Rajan Mr. Abhay Aima Mr. Bharat Shah Mr. C. N. Ram Mr. G. Subramanian Mr. Kaizad Bharucha Mrs. Mandeep Maitra Mr. Pralay Mondal Mr. Sudhir M. Joshi Mr. Vinod Yennemadi Mr. Sashi Jagdishan

Business focus
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HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services for target retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent with the bank's risk appetite. The bank is committed to maintain the highest level of ethical standards, professional integrity, corporate governance and regulatory compliance. HDFC Bank's business philosophy is based on four core values Operational Excellence, Customer Focus, Product Leadership and People.


HDFC Bank has an open ands informal culture. HDFC Bank has value integrity, commitment and teamwork and excellence in customer service. HDFC adopts a policy of learning by doing which encourages decision making as well as learning from doing. As HDFC Bank continue to grow rapidly in spite of the competitive market scenario, young professionals opting to make a career with HDFC Bank today will find more challenging and exciting opportunities to contribute and grow with them. If you are young, talented individual who enjoys challenges, has a passion to excel and can fit into our organizational culture & value system, you could be a part of learning and growing team of professionals at HDFC Bank. HDFC Bank has always been market-oriented and dynamic with respect to resource mobilization as well as its lending programmed. This renders it more that capable to meet the new challenges that have emerged. Over the years, HDFC Bank has developed a vast client base of borrowers, depositors, share holders and agents, and it hopes to capitalize 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 Bank has developed a network of industries through partnerships with some of the best institutions in the world, for providing specialized financial services. Each institution fine tuned for a specific market, while offering the entire HDFC customer base the highest standards of quality in product design, facilities and services.

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Banks mission is to be "a World Class Indian Bank", benchmarking themselves against international standards and best practices in terms of product offerings, technology, service levels, risk management and audit & compliance. The objective is to build sound customer franchises across distinct businesses so as to be a preferred provider of banking services for target retail and wholesale customer segments, and to achieve a healthy growth in profitability, consistent with the Bank's risk appetite. They are committed to do this while ensuring the highest levels of ethical standards, professional integrity, corporate governance and regulatory compliance. Their business strategy emphasizes the following : Increase our market share in Indias expanding banking and financial services industry by following a disciplined growth strategy focusing on quality and not on quantity and delivering high quality customer service. Leverage technology platform and open 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. Develop innovative products and services that attract its targeted customers and address inefficiencies in the Indian financial sector. Continue to develop products and services that reduce cost of funds. Focus on high earnings growth with low volatility

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Capital Structure
The authorised capital of HDFC Bank is Rs.450 crore (Rs.4.5 billion). The paid-up capital is Rs.311.9 crore (Rs.3.1 billion). The HDFC Group holds 22.1% of the bank's equity and about 19.4% of the equity is held by the ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue). Roughly 31.3% of the equity is held by Foreign Institutional Investors (FIIs) and the bank has about 190,000 shareholders. The shares are listed on the The Stock Exchange, Mumbai and the National Stock Exchange. The bank's American Depository Shares are listed on the New York Stock Exchange (NYSE) under the symbol "HDB".

Distribution channel
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over 761 branches spread over 327 cities across India. All branches are linked on an online real-time basis. Customers in over 120 locations are also serviced through Telephone Banking. The Bank's expansion plans take into account the need to have a presence in all major industrial and commercial centres 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 the centres where the NSE/BSE have a strong and active member base. The Bank also has a network of about over 1977 networked ATMs across these cities. Moreover, HDFC Bank's ATM network can be accessed by all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.
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Mr. Jagdish Capoor took over as the bank's Chairman in July 2001. Prior to this, Mr. Capoor was a Deputy Governor of the Reserve Bank of India. The Managing Director, Mr. Aditya Puri, has been a professional banker for over 25 years, and before joining HDFC Bank in 1994 was head of 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.

Technolog y
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 our clients always get the finest services we offer.
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The Bank has prioritised 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.

Busines s
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:

Corporate governance
HDFC Bank recognizes the importance of good corporate governance, which is generally accepted as a key factor in attaining fairness for all stakeholders and achieving organizational efficiency. This Corporate Governance Policy, therefore, is established to provide a direction and framework for managing and monitoring the bank in accordance with the principles of good corporate governance.

Awards and achievements

HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian Bank". We realised that only a single-minded focus on product quality and service excellence would help us get there. Today, we are proud to say that we are well on our way towards that goal. It is extremely gratifying that our efforts towards providing customer convenience have been appreciated both nationally and internationally.

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2007 Business Monitor survey Today- One of India's "Most Innovative Companies" Group

Financial Express- Best Bank Award in the Private Sector category Ernst & Young Award Global HR 'Employer Brand of the Year 2007 -2008' Award - First Excellence Awards Runner up, & many more - Asia Pacific HRM Congress: Business Today 'Best Bank' Award Dun & Bradstreet 'Corporate Best Bank' Award American Express Corporate Best Bank Award 2007 The Bombay Stock 'Best Corporate Social Responsibility Practice' Award Exchange and Nasscom Foundation's Business for Social Responsibility Awards 2007 Outlook Money & Best Bank Award in the Private sector category. NDTV Profit The Asian Banker Best Retail Bank in India Excellence in Retail Financial Services Awards Asian Banker Our Managing Director Aditya Puri wins the Leadership Achievement Award for India

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HDFC has always been market-oriented and dynamic with respect to resource mobilization 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, share holders and agents, and it hopes to capitalize on this loyal and satisfied client base for future growth. 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 services. TIMES BANK MERGER AND STRATEGIC ALLIANCES WILL ENHANCE THE BANKS POSITION IN THE SECTOR. Times bank merger will give HDFC Bank a greater reach in terms of an expanded network, which will touch 107 branches and an increased customer base. The bank has also invested 26% each in the equity of computer age management services and ACSYS system software India as strategic investment. While computer age is a well established player in the distribution of a range of mutual fund products, ACSYS is into developing software that caters to distributors of financial products and mutual funds

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HDFC bank in collaboration with Times of India organized a Mini Marathon Run for India on February 3. Some 2200 enthusiasts of all age and gender ran the Marathon. The Senior Superintendent of police, Gaurav yadav, flagged off the race from the serene sukhana lake. It culminated at the football stadium, Sector-12. Some of the participants came from as far as jalandhar and karnal. run for India- kiosks were erected on the both sides of the route. Our regional head, Ms Nina Singh gave away the cheques to the winners and special certificates to all participants who completed the race. We had reported that 60 of our employees had participated in the Mumbai marathon in support of a charity. We are happy to report that in addition to the amount pledged by our bank, the participants raised Rs. 67,654 though their friends, colleagues and well-wishers.

Under this project, underprivileged girls who are at risk of dropping out of government schools for financial or other causes are identified and special sponsorships designed for them that take care of a host of their educational requirements. This covers academic support in the form of reading, writing and holiday camps etc. and providing direct support in the form of notebooks, stationeries, and exam fees etc. our bank today is sponsoring 554 such girls studying in municipal schools sponsored by it.

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In addition to adopting the schools, our bank though Nanhi Kali also supports the education of girl children thereby ensuring that they are not deprived of their basic human rights. In such programme on march23, school bags, uniforms, shoes, socks, notebooks and other stationeries were distributed among the sponsored girls at a function attended by school principals and the community development officer among others.


According to unofficial estimates, there are 3 to 4 million children on construction sites across India, which are often unsafe, have no schools, playgrounds and hospitals. Since they are on the construction site, brick walls and a tin roof is all that is needed to house a crche, balwadi and a classroom. Our bank has partnered with mobile crches, a Mumbai based non-government organization to support the day care center for children of construction laborers at raheja vihar, chandivali, Mumbai, Mobile crches has an integrated approach towards child development and ensures that a child gets all the elements necessary for its holistic development and growth. Its day care centre initiatives typically are a mix of sound educational and health practices designed around the child, family and community.

Educational initiatives of mobile crches target three categories of kids (from new born kids of up to 12 years age) with tailor made programmes for each to enable the child to develop fully.

A Blood Donation camp was organized at patiala on April, 1. The entire patiala cluster team (from patiala, Nabha, Rajpura) participated in the camp and donated blood. A total of 51 units of blood were donated at the event that was very well organized with the help of Blood Bank staff headed by Dr.Shelly jaitley from local Rajindra Hospital. Mr. jatinder gupta, cluster head.

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Awards in Bhavnagar branch

There are so many awards and achievements in HDFC BANK Bhavnagar branch as described below 1). In December 2004 Bhavnagar branch was awarded for maximum selling of Credit card. As a title of THE FASTEST MILLION YOU MADE THE DIFFERENCE 2). In financial year 2005-06 the branch was awarded for second highest selling of life insurance business in Saurashtra and Kutchh cluster. 3). During January 2007 through march 2007 , branch was awarded for generating the Highest number of leads for current accounts.
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4). In December 2006 the Branch Manager Mr. Chetan Trivedi was certified with excellence For being the top branch manager for two wheeler vehicle loan in a month in west region

When two or more work together toward a common goal , Authority and responsibility are allocated among them so that their effort may become effective. This is the task of organizing. It is known as designing of an organization structure. Different enterprises adopt different types of organization which can be adopt in particular enterprise, they are; Line organization Staff organization Line & Staff organization Functional organization Matrix organization

HDFC has adopted the line organization as it is one of the simplest and oldest form of organization. It is known as military type of organization. In the bank there are different departments which are handled by general manager under the board of directors, they work together in this organization responsibility goes upward to downward

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Functions of various departments of the bank is divided in to three categories:


1) PERSONNEL BANKER P.B is a Personnel banker who takes care of customers. Basically P.B manages the portfolio of the customers. He is the first point contact for the customers. In the branch there are one P.B authorizer who takes report from P.B The main functions of Personnel Banker are as given below; To handle all types of queries of new customers or existed customers Account opening

2) TELLER Teller counter consists the teller authorizer and tellers. The main functions of teller are: Income tax, Sales tax challan Transfer cheques and funds. Forex card loading
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3rd party cash deposit Real time gross settlement Managers cheques Demand draft Forex traveler cheques etc..

3) RELATIONSHIP MANAGER Relationship manager maintains the portfolio of preferred customers.

4) INVESTMENT RELATIONSHIP MANAGER I.R.M generates the revenue for branch from 3rd party concept selling. I.R.M manages the portfolio of those customers who comes in the categories of the classic and preferred customers. He sales : Mutual Funds (there are 32 companies M.F) Insurance (HDFC Standard life) General insurance policies R.B.I bonds Wealth advisory services (to only HDFC s customers )


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I t is also called Operations. As we know , Operation is the backbone of any organization. The main functions of whole sell banking is; Clearing Cash management service Demate & Remate of shares Trade finance Other operations



Mandeep Maitra is the Country Head HR at HDFC Bank. She has done her B.A. Psychology from Lady Shriram College, Delhi and MBA HR from Tata Institute of Social Studies. ManojAgrawal and Margaret Tanty met Mandeep to understand the various activities and key issues.Excerpts from the discussion THE HR department at HDFC Bank has 54 people, including the trainers. The HR department is present in Mumbai, Chennai,Delhi, Ahmedabad, Kolkata, Bangalore, Hyderabad,Chandigarh, Pune and Lucknow. All people here in HR are MBAs,except for those handling HR operations.


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Human resource planning is the process of forecasting a firms future demand for and supply of the right type of people in the right number.

The planning process: HRP essentially involves forecasting personnel needs, assessing personnel supply and matching demand supply actors through personnel related programmes. The planning process is influenced by overall organizational objectives and the environment of business.

HR Planning Process

Organizational objectives and polices

H R Need Forecast

H R Supply Forecast H R Programming

HRP Implementation Control and Evaluation of Programme

Page | 34 Surplus restricted Hiring Reduced Hours Shortage Recruitment and Selection

HRP help to any organization for the estimation of how many qualified people are necessary to carry out the assigned activities, how many people will be available and what must be done to ensure that personnel supply equals personnel supply equals personnel demand at the appropriate point in the future, which helpful to achieve efficiency of bank in their various services. Reason behind success of any organization is efficient system of Human Resource Planning activities carries out by their human resource department. ICICI Bank also follow the golden system and try to implement those system in their organization well. Human Resource Planning is the process by which an organization ensures that it has the right number and kind of people, at the right place, at the right time, capable of effectively and efficiently completing those tasks that will helps the organization achieve its overall objectives. How HRP stands helpful to HDFC Bank: Future personnel needs: Parts of strategic planning: Creating highly talented work force: International Banking Strategies: Foundations of Personnel functions: Increasing investment in human to survive long-term:

RECRUITMENT: Recruitment involves attracting and obtaining as many applications as possible from eligible job seekers.

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Purpose behind implement of Recruitment system: Determine the present and future requirement of the organization in conjunction with its other activities. Helpful to attract the pool of job candidates at minimum cost. Help increase the success rate of the selection process by reducing number of unqualified employees in the prior evaluation. Help to reduce the probability that job applicants once recruited and selected will leave the organization only after a short period of time. Meet the organizations legal and social obligations regarding the composition of its workforce. Begin identifying and preparing potential job applicants who are appropriate candidate for ICICI Bank.

Sources of Recruitment:

Trade Associations Present Employees Advertisements

Employee Referrals

Employment Exchanges Campus Recruitment

Former Employees Walk-ins interviews Previous Applicants E- Recruiting

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E-Recruiting Perhaps no method has ever had as revolutionary an effect on recruitment practices as the internet. There are respective company websites devoted in some manner to job posing activities. Currently, employers can electronically screen candidates soft attributes, direct potential hires to a special website for online skill assessment. Conduct background checks over the internet, interview candidates via videoconferencing. And manage the entire process with web-based software. Companies benefit immensely through cost savings. Speed enhancement and extended worldwide candidate reach which the internet offers. From the job seekers perspective the internet allows for searches over a broader array of geographic and company posting than was possible before. Problems notwithstanding, both job givers as well as job seekers find internet as the most effective source of recruiting and its usage in the days to come will be all pervasive.

Evaluation of External Recruitment: External sources of recruitment have both merits and demerits. On the plus side, the following may be cited: Merits. The organization will have the benefit of new skills, new talents and new experiences, if people are hired from external sources. The management will be able to fulfil reservation requirements in favour of the disadvantaged sections of the society. Scope for resentment, heartburn end jealousy can be avoided by recruiting from outside. Demerits.

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Better motivation and increased morale associated with promoting own employees are lost ot the organization. External recruitment is costly. If recruitment and selection processes are not properly carried out. Chances of right candidates being rejected and wrong applicans being selected occur.

SELECTION: Selection is the processes of differentiating between applicants in order in identifies and hire those with a greater likelihood of success in a job.

Selection Process:

Telephonic - Interview

Selection Test

Final Interview

Reference & Background Analysis Selection Decision

Medical Clarification

Offer Letter

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Employment Agreement

RECRUITMENT & SELECTION HDFC banks campus strategy is to look at tier one campuses like Bajaj, SP Jain, IMI, SCMHRD, etc and not only IIMs. They go to 70 business schools, covering far away places like Bhuvaneshwar, Ludhiana, Baroda, etc. Students from these institutes understand the psychology of the up country customers and are ambitious about working for private sector banks. We hire B.Com, M.Com, engineers and other graduates, as well as MBAs. Today the requirement is not just globalization, but localization. To achieve this we hire people from various towns and cities. We are even hiring managers from rural background. We have a need to locate people in 500+ branches across 300 cities. I am often asked why we dont recruit from IIMs. My reply is that the bank is able to attract IIM graduates after they have worked for 3 to 5 years of work experience and they have experienced the real world and are likely to be less disillusioned. They take screening very seriously, though they dont use detectives. They do speak to current employers and ask questions about performance and integrity. After the completation of recruitment process, HDFC bank starts it selection process according to its schedule to the selection of deserved candidates. TRAINING & DEVELOPMENT
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Skills requirement is cyclical and depends on stage in which the business is into. Four years ago, asset skills were relatively rare. Then, as foreign banks got out of many asset businesses, there were lots of people available, changing the market demand and supply. But even now, treasury skills are difficult to find as lots of people are going overseas. There is a dearth of individuals who have relevant skills to manage private and corporate banking. Down the road, there will be a shortage of generalists, as organization starts looking for individuals as solution specialist rather than product specialists. We are swinging between generalists and specialists. We realize we need both and the pricing for both is different. Our induction program - Swagat - covers products and business of the bank. It is focused on developing skills and values. Four years ago we started an internal employee referral program called Karo Sifarish. It has become one of our most preferred channel and contributes significantly to talent acquisition. Earlier the focus was 100% on hard skills. Now, soft skills training has risen from being non-existent to 30% of the training efforts. We organize various programs including outbound experiential learning, Open Spaces Technology, Personal Effectiveness, Leadership Excellence, art of living, Vedanta, etc. Most training programs are delivered in house, except for highly technical ones such as derivatives. The in house training staff comprises of 17 people. People in the smaller cities were missing out as training program were being held in larger metros. We started sending our trainers to the remote locations about 15 months back. The Back Pack Trainers take classes after office hours and this has been much appreciated. The cost impact is minimal and the benefits manifold. We invite guest lecturers such as Bruce Carlson, CEO, Managerial Grid and Stephen Haines, Chairman of Center for Strategic Management, to spend half a day with our senior management . We have a strategic tie-up with IIM Ahmadabad for a 9 day program covering economics, quantitative, behavioral leadership, marketing, corporate communications, etc. We send 30 of our vice presidents every year as a part of leadership development plan. BENEFITS TO THE INDIVIDUAL WHICH ULYMATELY BENEFIT TO THE HDFC BANK

Helps the individual in making better decisions and effective problem solving Through training and development, motivational variables of recognition, achievement, growth, responsibility and advancement are internalized. Aids in encouraging and achieving self-development and self-confidence Helps a person handle stress, tension, frustration and conflict
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Provides information for improving leadership, knowledge, communication skills and attitudes Increase job satisfaction and recognition Moves a person towards personal goals while improving interactive skills Satisfies personal needs of the trainer Provides the trainee an avenue for growth and a say in his own future Develops a sense of growth in learning Helps a person develop speaking and listening skills Helps eliminate fear in attempting new tasks

BEST PRACTICES The most important thing in HR is to hold the confidence of people. Talent retention is a challenge today. Another challenge is managing expectations of youngsters, who are looking for fast tracking their career and want exposure quickly, they may not be lured by money alone, but the profile that they work for. We give ample opportunity to those who seek job rotation. If we have a new opening, we advertise it internally. Our philosophy is that it is better to lose a person to another department than to another bank. Our performance management system is our signature system. I am proud to say that I personally know most of the people across various levels in the organization. I have helped people move internally and helped them make a better career with the bank. We have one of the lowest rates of attrition. Middle management onwards our salaries here are good. We are young - only 12 years old. The average age in the bank is 27. Women have been rising up the ranks in the bank. At the junior level, over 33% of the workforce in consumer and retail banking comprises of women. In the senior levels, it is about 12% and in the top management, it is about 6 to 9%. This organization was very cost conscious. Today we have foreign tours,
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parties at national and regional levels, award nights and outings. As an organization we have started celebrating success.


Speaking to Business Line, Ajay Kelkar, Head, Marketing, HDFC Bank, said that these initiatives are especially targeted at those consumers who are not aware about the bank's various value added services such as direct banking facilities. "We are going to demonstrate the advantages of net banking and mobile banking, as these concepts are relatively new to people living in smaller towns and cities," said Kelkar. The bank has also launched another initiative called Business Ki Baten, which is targeted at areas where the bulk of the population comprises small businessmen. |

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Kelkar said that the bank would get experts to talk on a number of issues such as value-add tax and sales tax. HDFC, said Kelkar, has been successful in reducing its customer attrition by almost 15-20 per cent ever since its data-led customer analysis system, Unica, was set up last year. "It enables us to measure the efficacy of the campaigns, test every campaign at each and every step, experiment with creative and media. There are learnings that can immediately be incorporated into the next campaigns. These campaigns provide us with information about customer preferences that can be used for mass media communication, making it more effective." "We can measure the result of a campaign through the sales that they generate and the customers that are added. There is a clear return on investment, which from a functional point of view gives the team a stronger voice. We have also been able to reduce our ad spends by about 10-15 per cent and have also reduced the cost of acquisition," he added.

Kelkar said that the bank's focus in future would be to enhance its database marketing initiatives. "We plan to invest close to Rs 12 crore to create the environment that is required to support customer intelligence that leads to data based marketing." HDFC has chartered an extensive Customer Lifecycle based marketing campaign calendar for this and the forthcoming fiscal. Fractal, which specialises in predicting the behavior of the customers in the areas of risk and marketing, would be partnering HDFC Bank's marketing team in various initiatives of growing the retail business quickly and cost effectively. HDFC has been using analytics for taking informed marketing decisions. Fractal will help the bank use information to reach new customers and to build, nurture and maximise lasting customer relationships. Fractal will also help the bank solve the problem of ever-increasing customer acquisition costs and reducing customer loyalty. The marketing programmes would involve acquisition of customers profitably by reducing campaign costs, cross selling various asset and liability products to the existing customers, thereby, leveraging the existing relationships and proactively retaining existing customers.

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Fractal's analytics-based marketing solutions span which the entire lifecycle of customer relationship right from customer acquisition to customer retention to customer value management, is expected to give HDFC an upper hand in understanding the needs and circumstances of their customers. Fractal claims to use numerous advanced statistical modeling methodologies backed by strong banking expertise for building predictive models and scorecards that help its clients take business decisions more effectively and efficiently. The company has worked with HDFC in the past on similar assignments where the bank had benefited with the help of business analytics services

GROWTH IN LAST FEW YEARS Over the last few years, HDFC Bank as a whole has been growing steadily at a rate of 30 per cent or so, and that the bank has managed to maintain that growth rate on a consistent basis, which is a very creditable performance. However, in the product mix, there have been a

number of segments, especially loans, which have recorded growth of over 100 per cent over the last year.

MARKETING INITIATIVES TAKING BY THE BANK HDFC Bank is possibly the only bank in India, and one of the very few in Asia, to have embarked on a data-led marketing analytics campaigns initiative, using marketing automation technology provided by Unica. Unica has been recognised by Gartner as the leading player in this field.

Through this tool, we have been able to intelligently use the 4-5 terabytes of customer data available in its warehouse. We have set up a team to conduct marketing campaigns in a scientific manner using customer data, usage patterns, preferences, lifecycle, etc, the bank also conducts event-based marketing.

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These initiatives also complement our media-based marketing as well as on-the-ground marketing activities, which remain important in the bigger scheme of things. However, the marketing analytics initiative enables us to measure the efficacy of the campaigns, testing every campaign every step of the way, experimenting with creatives, messages, media, etc. There are learnings that can immediately be absorbed and incorporated in the next campaigns, and these campaigns in a way provide us with information about customer choices and preferences that can be used for mass media communication, making those more effective. MEDIA VEHICLES USED FOR SEND OUR MESSAGE TO REACH OUR TARGET AUDIENCE HDFC Bank has been predominantly using direct mailers, e-mails, and SMS for communicating our message to our target audience as they are the most cost-effective routes of addressing our core target audiences with maximum degree of customization possible


CNRam Head,IT HDFC Bank HDFC Bank has selected Interwovens Web Content Management (WCM) solution and Content Distribution software to enhance customer experience, reduce operational costs, and streamline compliance processes related to its Web site. With Interwoven, the bank will allow business users across the organisation to manage content on the Web without the assistance of its IT department. HDFC Bank aims at being consistent, comprehensive and accurate in providing online information to both domestic and international customers while adhering to regulations such as Sarbanes-Oxley.

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Previously, the bank relied on its IT team to manually upload a rapidly-growing amount of content on the Web. This process was time-consuming, error-prone, and not robust enough to scale to the large volumes that needed to be uploaded. It also did not allow the bank to keep auditable copies of all Web content changes. Due to the time-consuming process, the marketing department was often forced to wait for long periods before new marketing content could be added to the site by the IT personnel. As a result, branding across the banks various sites was inconsistent, and did not reflect the changing market trends and consumer demands. Marketing promotions could not be updated in a timely manner across our Web site, hindering time-to-market for the new products, which in turn often translated into revenue

losses, commented Ajay Kelkar, Head of Marketing at the bank. Inconsistency in branding across the site meant that customers were not receiving the best possible experience on our

site, and that needed to change if we had to continue strengthening our position in the market. To address these challenges and reduce the risk of providing customers with outdated or inaccurate information, the bank sought a solution to enable them to automate Web content publishing and enhance search functionality with robust and integrated metadata technology. After evaluating different systems, it selected Interwoven because of its proven solutions designed to help enterprises improve customer experience. Leveraging industry-leading technology to promote our brand and ensuring that we provide our customers with the highest level of satisfaction is imperative for us, said C N Ram, Head of IT at the bank. We needed a solution which would enable us to deploy and integrate our content across our Web site accurately, securely and easily. It became clear that Interwoven was the only solution that could enable us to meet our objectives. By empowering business users with direct content control, the bank will let its IT department focus on other business-critical issues, thus improving its operational efficiency. Having a competitive advantage and being able to react to a rapidly-changing business climate is important within the financial services market, commented Sunil Chavan, India Country Manager, Interwoven.

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In marketing, a product is anything that can be offered to a market that might satisfy a want or need. In retailing, products are called merchandise. In manufacturing, products are purchased as raw materials and sold as finished goods. Commodities are usually raw materials such as metals and agricultural products, but a commodity can also be anything widely available in the open market. The verb produce is from the Latin , lead or bring forth. The noun product is "a thing produced by labor or effort". Since 1575, the word "product" has referred to anything produced. Since 1695, the word has referred to "thing or things produced". The economic or commercial meaning of product was first used by political economist Adam Smith

Product line
A product line is "a group of products that are closely related, either because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges.

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Many businesses offer a range of product lines which may be unique to a single organization or may be common across the business's industry. In 2002 the US Census compiled revenue figures for the finance and insurance industry by various product lines such as "accident, health and medical insurance premiums" and "income from secured consumer loans" Within the insurance industry, product lines are indicated by the type of risk coverage, such as auto insurance, commercial insurance and life insurance

Product Line of HDFC Bank

Banking should be effortless. With HDFC Bank, the efforts are rewarding. No matter what a customer's need and occupational status, They have a range of solutions that are second to none. Whether you're employed in a company and need a simple Savings account or run your own business and require a robust banking partner, HDFC Bank not only has the perfect solution for you, but also can recommend products that can augment your planning for the future. SAVING ACCOUNTS

These accounts are primarily meant to inculcate a sense of saving for the future, accumulating funds over a period of time. Whatever your occupation, we are confident that you will find the
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perfect banking solution. Open an account in your name or register for one jointly with a family member today. The main saving accounts offered by the bank are: 1. Rugular account 2. Saving plus account 3. Saving max account 4. No frills accounts 5. Senior citizens 6.Retail trust account 7. Kids advantage account 8. Pension saving account 9. Family saving account 10. Kisan club savnig account 11. Salary account 12. Many more


The bank provides current accounts as per given types : Plus current account Trade current account Premium current account Regular current account FRC domestic account Flexi current account Appex current account Max current account FIXED DEPOSITS ACCOUNTS

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Regular fixed deposite 5 year tax saving fixed deposite Super saver facility Sweep in fixed deposite OTHER ACCOUNTS DEMATE ACCOUNT SAFE DEPOSITE LOCKER


Personal loan Home loan Two wheeler loan

Loan against security Loan against property Loan against rental receivable

New car loan Old car loan Express loan plus Gold loan Education loan

Helth care finance Tractor loan Commercial vehicle Working capital finance warehouse receipt loan

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CREDIT CARD Silver credit card Value plus credit card Health plus credit card Gold credit card Titanum credit card Womengold credit card Corporate credit card Business credit card

DEBIT CARDS Easy shop international card Easy shop gold card Easy shop international card Easy shop womens card Easy shop NRO card Kisan card

PREPAID CARD Forex plus Gift plus Food plus Money plus


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Mutual funds Insurance General & Health insurance Bonds Knowledge centre Equities & Derivatives Mudra gold bar

With a view to attract the savings and other remittance into India through banking channels from the person of Indian Nationality / Origin who are residing abroad and bolster the balance of payment position, the Government of India introduced in 1970 Non-Resident(External) Account Rules which are governed by the Exchange Control Regulations. The funds held in Non-Resident (External) Accounts (NRE Accounts) qualify for certain benefits like exemptions from taxes in India, free reatriation facitities, etc. DEPOSITTYPES NRI-Banking facilitates the NRI customer to open the following account types . NRE (Non Resident External Accounts) In can be in the form of Savings,Current or fixed deposits in Indian rupees.The funds in this account are fully repatriable. NRO (Non Resident Ordinary Accounts) It can be in the form of Savings, Current or Fixed Deposits in Indian Rupees. The funds in this account are not repatriable (only interest accrued is repatriable).
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FCNR ( Foreign Currency Non Resident Accounts) It can be in the form of fixed Deposits only, in the five major currencies ,namely US Dollars, GBP, DM,Euro, Japanese Yen. The funds in this account are fully Reportable.


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Are you a frequent flyer for business or often holiday abroad? Are you an importer/exporter of foreign and Indian goods?

If you need to deal in foreign currency and keep tabs on exchange rates every now and then, transfer monies to India, make payments etc., HDFC Bank has a range of products and services that you can choose from to transact smoothly, efficiently and in a timely manner. HDFC offer the following Foreign Exchange Products and Services. The following are the different methods for transferring in foreign exchange and remittinng money.
1. Travelers cheques

Travellers Cheques are a safe and easy way to protect your money when you travel. You can encash them only when you need to, and only against your signature, unlike cash which can be stolen and misused by anybody, immediately. Loss of Travellers Cheque can be reported anywhere in the world by making a single phone and the pre-fixed amount on the cheques are made refundable. Travellers Cheques are offered in major currencies like USD, GBP, Euro, CAD, AUD and JPY. These are available in various denominations to suit your needs. At present HDFC Bank offers American Express Travellers Cheques which are widely accepted at Merchant Establishments and Financial Institutions across more than 200 countries. 2. Foreign currency cash Foreign Currency Cash is a convenient way of meeting personal expenses along your journey, paying for taxis / internal travel, food expenses etc. You could avail of Foreign Currency Cash in USD, GBP, EURO, AUD and CAD from our branches offering Foreign Exchange facilities. 3. Foreign currency demand draft You can now avail of our FCY DD facility to make payments for
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various purposes like:

1. Payment of University fees abroad 2. Making a gift remittance to a friend or relative 3. Payment of application fees for various exams like TOEFL , GMAT etc. 4. Payment for medical treatment abroad 5. And all other permitted purposes as per the RBI guidelines. FCY Demand Drafts are issued in seven currencies like United States Dollars (USD), Great Britain Pounds (GBP), EURO, Japanese Yen (JPY), Australian Dollars (AUD), Canadian dollars (CAD) and New Zealand Dollars (NZD).

4. Cheque deposites You can directly deposit your foreign currency cheques in to your saving or current account. HDFC Bank will then have the cheques sent for collection and the funds will be credited to your account in Indian Rupees. We accept cheques of various currencies like USD, GBP, Euro, JPY, Australian Dollars, Canadian Dollars, UAE Dirhams, Hong Kong Dollars and Swiss Francs. Clearing Timings for cheques payable in US Dollars : 8 International working days for cheque payable in NewYork and 19 international working days for Non-NewYork from the date of lodgement at clearing house. Clearing Timings for cheques payable in Euro : 6 International working days for cheque payable in Germany and 18 international working days for Non-Germany from the date of lodgement at clearing house. Clearing Timings for cheques payable in GBP : 18 international working days from the date of lodgement at clearing house. Please note that Cheques drawn in one currency payable in another country where currency is different will take a longer period to realise and would attract charges of various correspondent banks as per their own tariff schedule over which we do not have any control. For e.g. A cheque drawn in USD payable on a bank in Singapore or Cheque drawn in GBP payable on a bank in South Africa or Cheque
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drawn in USD payable in Canada.

5. Remittances

HDFC Bank offers you the remittance facilities by which you can to send and receive money to your loved ones. They are categorized depending on your location and the urgency with which you want the money transferred.

Business analysis helps an organization to improve how it conducts its functions and activities in order to reduce overall costs, provide more efficient use of resources, and better support customers. It introduces the notion of process orientation, of concentrating on and rethinking end-to-end activities that create value for customers, while removing unnecessary, non-value added work. The person who carries out this task is called a business analyst The term Business Analyst is used to describe a person who practices the discipline of business analysis. A business analyst or "BA" is responsible for analyzing the business needs of their clients to help identify business problems and propose solutions. Within the systems development life cycle domain, the business analyst typically performs a liaison function between the business side of an enterprise and the providers of services to the enterprise. Common alternative titles are business systems analyst, systems analyst, and functional analyst, although some organizations may differentiate between these titles and corresponding responsibilities.

The International Institute of Business Analysis has the following definition of the role: "A business analyst works as a liaison among stakeholders in order to elicit, analyze, communicate and validate requirements for changes to business processes, policies and information systems. The business analyst understands business problems and opportunities
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in the context of the requirements and recommends solutions that enable the organization to achieve its goals."

Now we move toward the business analysis of HDFCbank TEN YEARS OF EXCELLANCE On the 18th of February, 1995, the then finance minister, Dr. Manmohan Singh, inaugurated the first branch of a new bank called HDFC Bank. Promoted by India's premier housing finance institution, it was the first private sector bank to have received a license from the Reserve Bank of India, after the banking sector was thrown open to new players. Driven by the vision and leadership of a highly respected senior management team, and thanks to the dedicated efforts of thousands of employees over the last 10 years, your bank has today emerged as one of the leading banks in the country. From the beginning, HDFC Bank began operations with the mission of becoming a World-class Indian Bank, and the endeavour of fulfilling all the financial requirements of our customers under one roof. Over the years, by delivering superior financial products and services, your bank has built a stable and long-lasting relationship with nearly seven million customers, without compromising our standards for maintaining high quality associations. Our culture for learning; our quick absorption of latest and best technologies; and our unwavering adherence to best practices in governance have been the core strengths that have brought us to our present position. Constantly learning through our growth, we have continued to use the dividends of our leadership position to fuel further expansion and presence. Today, ten years later, we are the market leader, or one of the top three, in most of the segments that we operate in. Today, our bank is recognised by many to be the best in many respects. However, for us, our journey to be pre-eminent in every possible sphere continues, and our drive to become even better at serving our customers becomes stronger. For us, it starts with the same passion we started with ten years ago. Every day.
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Capital Reserves and Surplus Deposits Borrowings Other Liabilities & Provisions TOTAL

354,43 11,142,80 100,768,60 4,478,86 16,431,91 133,176,6O



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Cash and balances with RBI Balances with Banks and Money at call Call and Short notice Investments Advances Fixed assets Other assets TOTAL

12,553,18 2,225,16 49,393,54 63,426,90 1,175,13 4,402,69 133,176,6O


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12000 10000 8000 6000 4000 2000 0 2005-06 2006-07 4475.34 6889.02



0 2007-08

Above column graph shows the sales of 3 years of HDFC bank .Now we analyses this data.
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Sales in financial year 2005-06 is 4475.34 crores .

Sales in financial year 2006-07 is 6889.02 crores. Sales in financial year 2007-08 is 10115 crores.
Increase in sales in 2006-07 is near about 153.94% of year 2005-06. Increase in sales in 2007-08 is near about 146.83% of year 2006-07.


Above column graph shows the net interest income of 3 years of HDFC bank .Now we analyses this data.
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NII in financial year 2005-06 is 230068 lacs.

NII in financial year 2006-07 is 346848 lacs. NII in financial year 2007-08 is 522788 lacs. Growth rate in NII in 2006-07 is near about 150.7589 % of year 2005-06. Growth rate in NII in 2007-08 is near about 150.7253 % of year 2006-07.


Above column graph shows the net revenue of 3 years of HDFC bank .Now we analyses this data.
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Net revenues in financial year 2005-06 are 342466 lacs. Net revenues in financial year 2006-07 are 498471 lacs. Net revenues in financial year 2007-08 are 751103 lacs. Increase in Net revenues in 2006-07 is near about 145.5534 % of year 2005-06. Increase in Net revenues in 2007-08 is near about 150.6873 % of year 2006-07.


Above column graph shows the profit after tax of 3 years of HDFC bank .Now we analyses this data.
Profit after tax in financial year 2005-06 is 87078 lacs. Page | 63

Profit after tax in financial year 2006-07 is 114145 lacs. Profit after tax in financial year 2007-08 is 159018 lacs. Growth rate in Profit after tax in 2006-07 is near about 131.083 % of year 2005-06. Growth rate in Profit after tax in 2007-08 is near about 139.312 % of year 2006-07.



12000000 10000000 8000000 6000000 4000000 2000000 0 2005-06 2006-07 5579682 6829794

10076860 Colum n1

0 2007-08

Above column graph shows the deposits of 3 years of HDFC bank .Now we analyses this data.
Deposits in financial year 2005-06 are 5579682 lacs. Deposits in financial year 2006-07 are 6829794 lacs. Page | 64

Deposits in financial year 2007-08 are 10076860 lacs. Increase in Deposits in 2006-07 is near about 122.404 % of year 2005-06. Increase in Deposits in 2007-08 is near about 147.542 % of year 2006-07.



50 45 40 35 30 25 20 15 10 5 0

46.22 36.29 27.92 Colum n1

0 2005-06 2006-07 2007-08

Above column graph shows the earning per shares of 3 years of HDFC bank .Now we analyses this data. EPS in financial year 2005-06 is 27.92 Rs. EPS in financial year 2006-07 is 36.29 Rs.
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EPS in financial year 2007-08 is 46.22 Rs.

Growth rate in EPS in 2006-07 is near about 129.978 % of year 2005-06.

Growth rate in EPS in 2007-08 is near about 127.362 % of year 2006-07.



8.5 9 8 7 6 5 4 3 2 1 0 7 5.5 Colum n1

0 2005-06 2006-07 2007-08

Above column graph shows the dividend per shares of 3 years of HDFC bank .Now we analyses this data.
Dividend per shares in financial year 2005-06 is 5.5 Rs. Dividend per shares in financial year 2006-07 is 7 Rs. Dividend per shares in financial year 2007-08 is 8.5 Rs.

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Growth rate in Dividend per shares in 2006-07 is near about 127.2727 % of year

Growth rate in Dividend per shares in 2007-08 is near about 121.428 % of year 2006-


Currently banking in India is generally fairly mature in terms of supply, product range and reach-even though reach in rural India still remains a challenge for the private sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks in comparable economies in its region. The Reserve Bank of India is an autonomous body, with minimal pressure from the government. The stated policy of the Bank on the Indian Rupee is to manage volatility but without any fixed exchange rate-and this has mostly been true.

With the growth in the Indian economy expected to be strong for quite some time-especially in its services sector-the demand for banking services, especially retail banking, mortgages and investment services are expected to be strong. One may also expect M&As, takeovers, and asset sales.

In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has
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been allowed to hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any stake exceeding 5% in the private sector banks would need to be vetted by them.

Currently, India has 88 scheduled commercial banks (SCBs) - 28 public sector banks (that is with the Government of India holding a stake), 29 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 31 foreign banks. They have a combined network of over 53,000 branches and 17,000 ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively.

Today, the main environment which directly or indirectly affects the whole banking industry are is given below. 1. Competitive market position 2. Social factors 3. Economic factors 4. Cultural factors 5. Technological factors 6. Government policies

Low average income levels have prevented Indias huge population of more than one billion from becoming a lucrative market for consumer goods/services. The vast majority of the population is preoccupied with meeting basic daily needs. Even so, the existence of a large middleclass, the estimated size of which varies from 25million to 350million,offers considerable potential for whole sellers and retailers

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The below table shows the figures of last 3 years PERTICULARS Population(in millions GDP per head (US $ at market exchange rate) Exports of goods & services (% change) Imports of goods & services (% change) 2006 1108.5 679 11.2 11.1 2007 1124.1 733 11.4 11.0 2008 1140.0 787 12.0 12.6

After looking the market opportunities now we move towards the challenges and benefits to banking industry

Challenges within the banking industry

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The banking industry is a highly regulated industry with detailed and focused regulators. All banks with FDIC-insured deposits have the FDIC as a regulator; however, for examinations, the Federal Reserve is the primary federal regulator for Fed-member state banks; the Office of the Comptroller of the Currency (OCC) is the primary federal regulator for national banks; and the Office of Thrift Supervision, or OTS, is the primary federal regulator for thrifts. State non-member banks are examined by the state agencies as well as the FDIC. National banks have one primary regulatorthe OCC. Each regulatory agency has their own set of rules and regulations to which banks and thrifts must adhere. The Federal Financial Institutions Examination Council (FFIEC) was established in 1979 as a formal interagency body empowered to prescribe uniform principles, standards, and report forms for the federal examination of financial institutions. Although the FFIEC has resulted in a greater degree of regulatory consistency between the agencies, the rules and regulations are constantly changing. In addition to changing regulations, changes in the industry have led to consolidations within the Federal Reserve, FDIC, OTS and OCC. Offices have been closed, supervisory regions have been Page | 69

merged, staff levels have been reduced and budgets have been cut. The remaining regulators face an increased burden with increased workload and more banks per regulator. While banks struggle to keep up with the changes in the regulatory environment, regulators struggle to manage their workload and effectively regulate their banks. The impact of these changes is that banks are receiving less hands-on assessment by the regulators, less time spent with each institution, and the potential for more problems slipping through the cracks, potentially resulting in an overall increase in bank failures across the United States. The changing economic environment has a significant impact on banks and thrifts as they struggle to effectively manage their interest rate spread in the face of low rates on loans, rate competition for deposits and the general market changes, industry trends and economic fluctuations. It has been a challenge for banks to effectively set their growth strategies with the recent economic market. A rising interest rate environment may seem to help financial institutions, but the effect of the changes on consumers and businesses is not predictable and the challenge remains for banks to grow and effectively manage the spread to generate a return to their shareholders. The management of the banks asset portfolios also remains a challenge in todays economic environment. Loans are a banks primary asset category and when loan quality becomes suspect, the foundation of a bank is shaken to the core. While always an issue for banks, declining asset quality has become a big problem for financial institutions. There are several reasons for this, one of which is the lax attitude some banks have adopted because of the years of good times. The potential for this is exacerbated by the reduction in the regulatory oversight of banks and in some cases depth of management. Problems are more likely to go undetected, resulting in a significant impact on the bank when they are recognized. In addition, banks, like any business, struggle to cut costs and have consequently eliminated certain expenses, such as adequate employee training programs. Banks also face a host of other challenges such as aging ownership groups. Across the country, many banks management teams and board of directors are aging. Banks also face ongoing pressure by shareholders, both public and private, to achieve earnings and growth projections. Regulators place added pressure on banks to manage the various categories of risk. Banking is also an extremely competitive industry. Competing in the financial services industry has become tougher with the entrance of such players as insurance agencies, credit unions, check cashing services, credit card companies, etc. As a reaction, banks have developped their activities in financial instruments, through financial market operations such as brokerage and trading and become big players in such activities.

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A bank generates a profit from the differential between the level of interest it pays for deposits and other sources of funds, and the level of interest it charges in its lending activities. This difference is referred to as the spread between the cost of funds and the loan interest rate. Historically, profitability from lending activities has been cyclical and dependent on the needs and strengths of loan customers. In recent history, investors have demanded a more stable revenue stream and banks have therefore placed more emphasis on transaction fees, primarily loan fees but also including service charges on an array of deposit activities and ancillary services (international banking, foreign exchange, insurance, investments, wire transfers, etc.). Lending activities, however, still provide the bulk of a commercial bank's income. In the past 10 years American banks have taken many measures to ensure that they remain profitable while responding to increasingly changing market conditions. First, this includes the Gramm-LeachBliley Act, which allows banks again to merge with investment and insurance houses. Merging banking, investment, and insurance functions allows traditional banks to respond to increasing consumer demands for "one-stop shopping" by enabling cross-selling of products (which, the banks hope, will also increase profitability). Second, they have expanded the use of risk-based pricing from business lending to consumer lending, which means charging higher interest rates to those customers that are considered to be a higher credit risk and thus increased chance of default on loans. This helps to offset the losses from bad loans, lowers the price of loans to those who have better credit histories, and offers credit products to high risk customers who would otherwise been denied credit. Third, they have sought to increase the methods of payment processing available to the general public and business clients. These products include debit cards, pre-paid cards, smart-cards, and credit cards. These products make it easier for consumers to conveniently make transactions and smooth their consumption over time (in some countries with under-developed financial systems, it is still common to deal strictly in cash, including carrying suitcases filled with cash to purchase a home). However, with convenience there is also increased risk that consumers will mismanage their financial resources and accumulate excessive debt. Banks make money from card products through interest payments and fees charged to consumers and transaction fees to companies that accept the cards. The banking industry's main obstacles to increasing profits are existing regulatory burdens, new government regulation, and increasing competition from non-traditional financial institutions

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For competitive analysis of banks working in India I have selected few top business making banks as a random sample. And this is as given below.


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RS 3,621.73 7,891.80 2,266.44 13,799.20 3,293.82

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120 100 80 60 40 20 0
RS HDFC 44.87 ICICI 37.37 AXIX 29.94 SBI 106.56 BOB 39.27 FEDERAL BANK OF INDUSIND ING VYSYA BANK INDIA 21.52 38.21 2.35 13.33

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1 20 1 00 80 60 40 20 0

HDFC 12.82

IC ICI 10.51

AXIX 29.94

SBI 106.56

BOB 39.27


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People still believes that the private sector banks are not safe to invest in it. Which all the banks should think while launching any new product. For Bhavnagar branch, it is suggested to increase in number of teller counter for better convenience of customers. Though the culture of the organization is good but still sometimes many customers are dissatisfied with employees rude behavior. Need to motivate employees for reducing the turnover of employees. The customers are still not well aware about the hidden charges taken by the banks. Brokerage should be reduced to the possible extent, so that new customers can be attracted.
Compare to ICICI bank, HDFC bank is not providing EDC machine easily and at low

cost to the local business man. When I was in survey, I found that many few people are interested to use locker facility . The concept of right product for right person is not adopted. The main thing is that most of the customers believes that the banks takes more hidden charges so it should be no there. Though bank provides better services , customer fears to use because there may be hidden charges. Clarify all the terms and conditions toward customers clearly , many sales person doesnt describes about all the charges and than the customers does not becomes loyal toward the bank. Some customers are not trading online even after open an account because they are not having enough knowledge about site. This can be solved with proper demonstration of site to customer who had opened an account. Some discount/offer should be given to those who are opening accounts in groups.
More Offer can be give to the existing demat account holder.

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From the training, I came to know how to deal with the clients, especially from the marketing point of view. From this one & half month of training I have learnt that practical knowledge is very necessary in any field. My through study of all the organizational departments has also made me aware about how all the departments try to coordinate each other & led the bank towards the peak of profits.

My training at HDFC Bank, Bhavnagar branch, has lead me to learn that how the banks work efficiently although in this competitive era. The training lead me to understand how all the departments of the bank namely operations, marketing, finance and human resource departments work in a coordinated way and how the branch manager tries to join all the different hands with each other.
My training has also taught me how the private sector banks works in this competitive

and fast moving environment. The bankers are trying to provide a wide range of products and services and very efficient services to its customers.

The tough and competitive works done by its employees has made me aware about the

needs to change with the changing environment to survive in the competitive market. It also gave me an elaborated study of the organizational study of the Bank. My training gave me a good learning and gave me an idea about the practicality of the theories which I have learned as a part of my study syllabus in my M.B.A programme. It also gave me idea how the banks works and are managed by its executives the whole day. The regular and routine decisions taken by the managers of different department so as to let the working go on smoothly without any hindrances. It has also made me aware of regular maintenance of the branch and its employees.

The professionalism is the most important thing which I noticed. The updated knowledge of not everything but the basic is necessary in this world. It has also gave me an idea how the managers at top level talk and behave very nicely and cordially with the staff right from the watch man, his subordinates to their senior officers along with its customers.
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They also try to maintain the good organizational culture and discipline in the organization which is suitable and healthy for all who are working over there and who are directly or indirectly attached to the bank including its customers.

The bank has provided me the learning of how the customers blindly believe on the banks and how the bankers try to retain it patiently.

My learning says that it is not an easy task to remain stand through in this competitive era. My one and half month experience says that its easy to learn theories but you should know how to apply them practically than only you can put yourself in this environment.

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