PRESENTATION ON HDFC BANK AND UNION BANK

BY Prahladsinh jadeja(10039) Yuvrajsinh jadeja(10042) Dhaval kharod(10051) Sachin abda(10001) Pratik Chothani(10020) Akash Atri(10010) Bhvesh Limbachiya(10059)

ABOUT THE HDFC BANK

HDFC Bank Limited is a major Indian financial services company based in India, established in August 1994. The Bank was promoted by the Housing Development Finance Corporation, a premier housing finance company. HDFC Bank has 1,725 branches and over 5,000 ATMs, in 780 cities in India.

MISSION
World Class Indian Bank Benchmarking against international standards. Best practices in terms of product offerings, technology, service levels, risk management and audit & compliance. To build sound customer franchises across distinct businesses.

VISION
The HDFC Bank is committed to maintain the highest level of ethical standards, professional integrity and regulatory compliance. HDFC Banks business philosophy is based on four core values such as:Operational excellence. Customer Focus. Product leadership. People.

BUSINESS STRATEGY
Increasing market share in Indias expanding banking. Delivering high quality customer service. Delivering more products to more customers. Maintaining current high standards for asset quality through disciplined credit risk management. Develop innovative products and services that attract targeted customers and address inefficiencies in the Indian financial sector.

SWOT ANALYSIS

STRENGTH
Higher profitability Large share of low-cost deposits, higher net interest margin

Superior customer service vs. competitors. Great Brand Image High degree of customer satisfaction. Good Service at low cost.

WEAKNESSES

Not very aggressive in M&A space, growing only organically High dependence on individual loans.

OPPORTUNITIE S
Fast growing insurance business in the country. Untapped rural markets. Could extend to overseas broadly An applied research centre to create opportunities for developing techniques to provide added-value services.

THREATS
Risk of fraud and NPA accretion due to increase in interest rates and fall in property prices is inherent to the mortgage business The polices of RBI Very high competition prevailing in the industry Unlike Government Banks, an account needs a minimum balance of Rs.10,000

Porters Five Forces Model

HDFC BANK PRODUCT PORTFOLIO

HDFC Bank mainly provides three kind of banking services: Personal Banking NRI Banking Wholesale Banking

INTEGRATED FINANCIAL SERVICES

SECURITISATION

HDFC CHUBB GENERAL INSURANCE CO. LTD.

Future Activities

DISTRIBUTION

BCG Growth-Share Matrix

HDFC bank include in the star while union bank of India is in cash cow

Risk Management and Portfolio Quality

credit risk:-The Risk Policy and Monitoring Committee of the Board monitors the Banks risk management policies and procedures, vets treasury risk limits before they are considered by the Board, and reviews portfolio composition and impaired credits.

MARKETING STATERGY
cross-selling Personal selling Merger strategy Centurion Bank of Punjab

CORPORATE SOCIAL RESPONSIBILITY

The major initiatives that your Bank has taken in this direction over the last few years cover the following areas : Education Livelihood training and support Environmental sustainability Employee welfare, health and well being Employee engagement

EPS RATIO
YEAR 2006-07 2007-08 2008-09 2009-10 2010-11 EPS IN (Rupees) 43.29 44.87 52.9 67.6 85

INTERSET SPREAD
INTERS S READ ) ET P (%
YEAR 2006-07 2007-08 2008-09 2009-10 2010-11 INTERSET SPREAD 5.47 7.08 6.98
5 8 7 6

7.08 5.47

6.98 5.89

5.95

5.89 5.95
4 3 2 1 0

INTERSET SPREAD

2006-072007-082008-092009-102010-11

RETURN ON NETWORTH(%)
YEAR 2006-07 2007-08 2008-09 2009-10 2010-11 RETURN ON NETWORTH 23.57 13.83 15.32 13.7 15.7

CURRENT RATIO
YEAR 2006-07 2007-08 2008-09 2009-10 2010-11 CURRENT RATIO 0.04 0.04 0.04 0.03 0.06

QUICK RATIO
YEAR 2006-07 2007-08 2008-09 2009-10 2010-11 QUICK RATIO 4.07 4.89 5.23 7.14 6.89

Union Bank Overview

Union Bank of India (UBI) was registered on 11 November 1919 as a limited company in Mumbai and was inaugurated by Mahatma Gandhi Union Bank of India is one of India 's largest state-owned banks (the government owns 55.43% of its share capital), is listed on the Forbes 2000. It has assets of USD 13.45 billion and all the bank's branches have been networked with its 1135 ATMs.

Operational Excellence
FIRST TERM -2006 E-channels Implementation
Backroom Migration to Cebu Launch of Six Sigma Implementation Electronic Conversion of Notices and Statement of Accounts Branch Management Replacement Team Deployment and Control System Improvements

 SECOND TERM-NOW It involves continuous business process improvement through automation The final/third term In this they will offer their attained efficiencies to their subsidiaries/affiliates and third party companies.

Mission and vision

Mission To be the premier financial institution in the Emerging Markets Vision To be the premiere bank, responsive to the needs of our target market customers, recognized for consistently superior service quality and innovative products, thereby delivering superior value to our stakeholders

Schemes offered by union bank

Introduction of white card scheme Union gold loan scheme International banking Internet mobile banking Future scheme

SWOT ANALYSIS
STRENGHTS Excellent Customer Services Real Time Online Services Innovative IT Technology Seasoned Employees

WEAKNESSES
Low Market Share Low Brand Loyalty Lack of Promotional Activities Conflicts Among Employees High Staff Turnover in the Banking Sector

WEAKNESSES
Low Market Share Low Brand Loyalty Lack of Promotional Activities Conflicts Among Employees High Staff Turnover in the Banking Sector

THREATS
Dominance of Large Local Banks Present market

MERGER AND ACQUISITION STRTAGY

complementary strengths of two banks: the financial strength and technological sophistication of Union Bank and the culture of service excellence of iBank.

Product Strategies
Augmented Product Augmented Personalized Services

MERGER AND ACQUISITION STRTAGY

complementary strengths of two banks: the financial strength and technological sophistication of Union Bank and the culture of service excellence of iBank.

First mover strategy

in rural area by giving more agriculture loan

International strategy of bank

The Bank is having a correspondent relationship with301 leading international banks at all major international Centers The Bank has entered into Rupee Drawing Arrangement (RDA) with 23 International Banks and 14Exchange Houses in the Middle East. The Bank has also introduced an internet-based 'On-line Remittance Product' for NRIs in U.K and U.S.A as well as for Exchange Houses in Middle East.

CORPORATE SOCIAL RESPONSIBILITY statergy

It has introduced a Management Education Programme on the lines of the MBA programme offered by the IIMs

Expansion strategy
By completing four project of recruitment

Risk Management
Credit Risk Management Committee (CRMC) deals with issues relating to creditpolicy and procedures Asset-Liability Management Committee (ALM) decision-making unitresponsible for balance sheet planning from ariskreturn perspective, including the strategicmanagement of market risk

Cont
Operational Risk Management Committee(ORMC) responsible foroverseeing Bank's operational risk management and new product approval processes.

Non performing asset management

By making effective use of the conducive legal environment like invoking provisions of Securitisation Act (SARFAESIA), It has put in place a revamped and more stringent Credit Monitoring Mechanism last year which enabled identification of impairment / weakness in borrowal accounts at an early stage, analyze the reasons and initiate swift corrective measures so as

Year 2007 2008 2009 2010 2011

Earning per share 16.74 27.46 34.18 41.08 39.71

Year 2007 2008 2009 2010 2011

Return on net worth(%) 19.16 24.66 24.47 23.55 18.79

Year 2007 2008 2009 2010 2011

Current ratio 0.02 0.02 0.03 0.03 0.03

Year 2007 2008 2009 2010 2011

Current ratio 8.82 10.78 11.26 26.65 23.22