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Definitions of banking
Banking is engaging in the business of keeping money for savings and checking accounts or for exchange or for issuing loans and credit etc. transacting business with a bank; depositing or withdrawing funds or requesting a loan etc. A bank is a financial institution that accepts deposits and channels those deposits into lending activities. Banks primarily provide financial services to customers while enriching investors. Government restrictions on financial activities by banks vary over time and location. ... The Banking (Special Provisions) Act 2008 (c.2) is an Act of the Parliament of the United Kingdom that entered into force on the 21 February 2008 in order to enable the UK government to nationalise high-street banks under emergency circumstances by secondary legislation. ... The business of managing a bank; The occupation of managing or working in a bank; A horizontal turn bank - sloping land (especially the slope beside a body of water); "they pulled the canoe up on the bank"; "he sat on the bank of the river and watched the currents" bank - tip laterally; "the pilot had to bank the aircraft" bank - a long ridge or pile; "a huge bank of earth" bank - enclose with a bank; "bank roads" bank - an arrangement of similar objects in a row or in tiers; "he operated a bank of switches" bank - a supply or stock held in reserve for future use (especially in emergencies) bank - act as the banker in a game or in gambling bank - be in the banking business bank - a slope in the turn of a road or track; the outside is higher than the inside in order to reduce the effects of centrifugal force bank - deposit: put into a bank account; "She deposits her paycheck every month

HISTORY OF BANKING IN INDIA

INTRODUCTION Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors. For the past three decades India's banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact,

Indian banking system has reached even to the remote corners of the country. This is one of the main reason of India's growth process. The government's regular policy for Indian bank since 1969 has paid rich dividends with the nationalisation of 14 major private banks of India Not long ago, an account holder had to wait for hours at the bank counters for getting a draft or for withdrawing his own money. Today, he has a choice. Gone are days when the most efficient bank transferred money from one branch to other in two days. Now it is simple as instant messaging or dial a pizza. Money have become the order of the day.

The first bank in India, though conservative, was established in 1786. From 1786 till today, the journey of Indian Banking System can be segregated into three distinct phases. They are as mentioned below: Early phase from 1786 to 1969 of Indian Banks Nationalisation of Indian Banks and up to 1991 prior to Indian banking sector Reforms. New phase of Indian Banking System with the advent of Indian Financial & Banking Sector Reforms after 1991. To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and Phase III.

Phase I

The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks, mostly Europeans shareholders. In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda , Canara Bank, Indian Bank, and Bank of Mysore were set up. Reserve Bank of India came in 1935. During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the functioning and activities of commercial banks, the Government of India came up with The Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested with extensive powers for the supervision of banking in india as the Central Banking Authority. During those days public has lesser confidence in the banks. As an aftermath deposit mobilisation was slow. Abreast of it the savings bank facility provided by the Postal department was comparatively safer. Moreover, funds were largely given to traders. Phase II

Government took major steps in this Indian Banking Sector Reform after independence. In 1955, it nationalised Imperial Bank of India with extensive banking facilities on a large scale specially in rural and semi-urban areas. It formed State Bank of india to act as the principal agent of RBI and to handle banking transactions of the Union and State Governments all over the country. Seven banks forming subsidiary of State Bank of India was nationalised in 1960 on 19th July, 1969, major process of nationalisation was carried out. It was the effort of the then Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country was nationalised. Second phase of nationalisation Indian Banking Sector Reform was carried out in 1980 with seven more banks. This step brought 80% of the banking segment in India under Government ownership. The following are the steps taken by the Government of India to Regulate Banking Institutions in the Country: 1949 : Enactment of Banking Regulation Act. 1955 : Nationalisation of State Bank of India. 1959 : Nationalisation of SBI subsidiaries. 1961 : Insurance cover extended to deposits. 1969 : Nationalisation of 14 major banks. . 1971 : Creation of credit guarantee corporation. 1975 : Creation of regional rural banks. 1980 : Nationalisation of seven banks with deposits over 200 crore After the nationalisation of banks, the branches of the public sector bank India rose to approximately 800% in deposits and advances took a huge jump by 11,000%. Banking in the sunshine of Government ownership gave the public implicit faith and immense confidence about the sustainability of these institutions. Phase III This phase has introduced many more products and facilities in the banking sector in its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his name which worked for the liberalisation of banking practices. The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and net banking is introduced. The entire system became more convenient and swift. Time is given more importance than money. The financial system of India has shown a great deal of resilience. It is sheltered from any crisis triggered by any external macroeconomics shock as other East Asian Countries suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high, the capital account is not yet fully convertible, and banks and their customers have limited foreign exchange exposure

Reserve Bank of India (RBI)

The central bank of the country is the Reserve Bank of India (RBI). It was established in April 1935 with a share capital of Rs. 5 crores on the basis of the recommendations of the Hilton Young Commission. The share capital was divided into shares of Rs. 100 each fully paid which was entirely owned by private shareholders in the begining. The Government held shares of nominal value of Rs. 2,20,000. Reserve Bank of India was nationalised in the year 1949. The general superintendence and direction of the Bank is entrusted to Central Board of Directors of 20 members, the Governor and four Deputy Governors, one Government official from the Ministry of Finance, ten nominated Directors by the Government to give representation to important elements in the economic life of the country, and four nominated Directors by the Central Government to represent the four local Boards with the headquarters at Mumbai, Kolkata, Chennai and New Delhi. Local Boards consist of five members each Central Government appointed for a term of four years to represent territorial and economic interests and the interests of co-operative and indigenous banks. The Reserve Bank of India Act, 1934 was commenced on April 1, 1935. The Act, 1934 (II of 1934) provides the statutory basis of the functioning of the Bank. The Bank was constituted for the need of following: To regulate the issue of banknotes To maintain reserves with a view to securing monetary stability and To operate the credit and currency system of the country to its advantage. Functions of Reserve Bank of India The Reserve Bank of India Act of 1934 entrust all the important functions of a central bank the Reserve Bank of India. Bank of Issue Under Section 22 of the Reserve Bank of India Act, the Bank has the sole right to issue bank notes of all denominations. The distribution of one rupee notes and coins and small coins all over the country is undertaken by the Reserve Bank as agent of the Government. The Reserve Bank has a separate Issue Department which is entrusted with the issue of currency notes. The assets and liabilities of the Issue Department are kept separate from those of the Banking Department. Originally, the assets of the Issue Department were to consist of not less than two-fifths of gold coin, gold bullion or sterling securities provided the amount of gold was not less than Rs. 40 crores in value. The remaining three-fifths of the assets might be held in rupee coins, Government of India rupee securities, eligible bills of exchange and promissory notes payable in India. Due to the exigencies of the Second World War and the post-was period, these provisions were considerably modified. Since 1957, the Reserve Bank of India is required to maintain gold and foreign exchange reserves of Ra. 200 crores, of which at least Rs. 115 crores should be in gold. The system as it exists today is known as the minimum reserve system. Banker to Government

The second important function of the Reserve Bank of India is to act as Government banker, agent and adviser. The Reserve Bank is agent of Central Government and of all State Governments in India excepting that of Jammu and Kashmir. The Reserve Bank has the obligation to transact Government business, via. to keep the cash balances as deposits free of interest, to receive and to make payments on behalf of the Government and to carry out their exchange remittances and other banking operations . The Reserve Bank of India helps the Government - both the Union and the States to float new loans and to manage public debt. The Bank makes ways and means advances to the Governments for 90 days. It makes loans and advances to the States and local authorities. It acts as adviser to the Government on all monetary and banking matters. Bankers' Bank and Lender of the Last Resort The Reserve Bank of India acts as the bankers' bank. According to the provisions of the Banking Companies Act of 1949, every scheduled bank was required to maintain with the Reserve Bank a cash balance equivalent to 5% of its demand liabilites and 2 per cent of its time liabilities in India. By an amendment of 1962, the distinction between demand and time liabilities was abolished and banks have been asked to keep cash reserves equal to 3 per cent of their aggregate deposit liabilities. The minimum cash requirements can be changed by the Reserve Bank of India. The scheduled banks can borrow from the Reserve Bank of India on the basis of eligible securities or get financial accommodation in times of need or stringency by rediscounting bills of exchange. Since commercial banks can always expect the Reserve Bank of India to come to their help in times of banking crisis the Reserve Bank becomes not only the banker's bank but also the lender of the last resort. Controller of Credit The Reserve Bank of India is the controller of credit i.e. it has the power to influence the volume of credit created by banks in India. It can do so through changing the Bank rate or through open market operations. According to the Banking Regulation Act of 1949, the Reserve Bank of India can ask any particular bank or the whole banking system not to lend to particular groups or persons on the basis of certain types of securities. Since 1956, selective controls of credit are increasingly being used by the Reserve Bank. The Reserve Bank of India is armed with many more powers to control the Indian money market. Every bank has to get a licence from the Reserve Bank of India to do banking business within India, the licence can be cancelled by the Reserve Bank of certain stipulated conditions are not fulfilled. Every bank will have to get the permission of the Reserve Bank before it can open a new branch. Each scheduled bank must send a weekly return to the Reserve Bank showing, in detail, its assets and liabilities. This power of the Bank to call for information is also intended to give it effective control of the credit system. The Reserve Bank has also the power to inspect the accounts of any commercial bank. As supereme banking authority in the country, the Reserve Bank of India, therefore, has the following powers:

(a) It holds the cash reserves of all the scheduled banks. (b) It controls the credit operations of banks through quantitative and qualitative controls. (c) It controls the banking system through the system of licensing, inspection and calling for information.

(d) It acts as the lender of the last resort by providing rediscount facilities to scheduled banks. Custodian of Foreign Reserves

The Reserve Bank of India has the responsibility to maintain the official rate of exchange . According to the Reserve Bank of India Act of 1934, the Bank was required to buy and sell at fixed rates any amount of sterling in lots of not less than Rs. 10,000. The rate of exchange fixed was Re. 1 = sh. 6d. Since 1935 the Bank was able to maintain the exchange rate fixed at lsh.6d. though there were periods of extreme pressure in favour of or against the rupee. After India became a member of the International Monetary Fund in 1946, the Reserve Bank has the responsibility of maintaining fixed exchange rates with all other member countries of the I.M.F. Besides maintaining the rate of exchange of the rupee, the Reserve Bank has to act as the custodian of India's reserve of international currencies. The vast sterling balances were acquired and managed by the Bank. Further, the RBI has the responsibility of administering the exchange controls of the country.

Supervisory functions In addition to its traditional central banking functions, the Reserve bank has certain non-monetary functions of the nature of supervision of banks and promotion of sound banking in India. The Reserve Bank Act, 1934, and the Banking Regulation Act, 1949 have given the RBI wide powers of supervision and control over commercial and co-operative banks, relating to licensing and establishments, branch expansion, liquidity of their assets, management and methods of working, amalgamation, reconstruction, and liquidation. The RBI is authorised to carry out periodical inspections of the banks and to call for returns and necessary information from them. The nationalisation of 14 major Indian scheduled banks in July 1969 has imposed new responsibilities on the RBI for directing the growth of banking and credit policies towards more rapid development of the economy and realisation of certain desired social objectives. The supervisory functions of the RBI have helped a great deal in improving the standard of banking in India to develop on sound lines and to improve the methods of their operation.

Promotional functions With economic growth assuming a new urgency since Independence, the range of the Reserve Bank's functions has steadily widened. The Bank now performs a varietyof developmental and promotional functions, which, at one time, were regarded as outside the normal scope of central banking. The Reserve Bank was asked to promote banking habit, extend banking facilities to rural and semi-urban areas, and establish and promote new specialised financing agencies. Accordingly, the Reserve Bank has helped in the setting up of the IFCI and the SFC; it set up the Deposit Insurance Corporation in 1962, the Unit Trust of India in 1964, the Industrial Development Bank of India also in 1964, the Agricultural Refinance Corporation of India in 1963 and the Industrial Reconstruction Corporation of India in 1972. These institutions were set up directly or indirectly by the Reserve Bank to promote saving habit and to mobilise savings, and to provide industrial finance as well as agricultural finance. As far back as 1935, the Reserve Bank of India set up the Agricultural Credit Department to provide agricultural credit. But only since 1951 the Bank's role in this field has become extremely important. The Bank has developed the co-operative

credit movement to encourage saving, to eliminate moneylenders from the villages and to route its short term credit to agriculture. The RBI has set up the Agricultural Refinance and Development Corporation to provide long-term finance to farmers. Classification of RBIs functions The monetary functions also known as the central banking functions of the RBI are related to control and regulation of money and credit, i.e., issue of currency, control of bank credit, control of foreign exchange operations, banker to the Government and to the money market. Monetary functions of the RBI are significant as they control and regulate the volume of money and credit in the country. Equally important, however, are the non-monetary functions of the RBI in the context of India's economic backwardness. The supervisory function of the RBI may be regarded as a non-monetary function (though many consider this a monetary function). The promotion of sound banking in India is an important goal of the RBI, the RBI has been given wide and drastic powers, under the Banking Regulation Act of 1949 - these powers relate to licencing of banks, branch expansion, liquidity of their assets, management and methods of working, inspection, amalgamation, reconstruction and liquidation. Under the RBI's supervision and inspection, the working of banks has greatly improved. Commercial banks have developed into financially and operationally sound and viable units. The RBI's powers of supervision have now been extended to non-banking financial intermediaries. Since independence, particularly after its nationalisation 1949, the RBI has followed the promotional functions vigorously.

Monetary Policy
Introduction In mid 90s the thrust of monetary policy was to reduce the annual inflation rate and provide credit support for production. Money supply (M3) was reduced considerably, mainly because of a slow growth in bank deposits and a decline in the growth of reserve money. Slow growth Another major factor in controlling this growth was the lower level of foreign exchange inflows. Slower monetary growth was accompanied by lower bank credit to the commercial sector. These trends were compounded by a decline in other sources of finance to industry, such as primary issues in the domestic stock market and GDR issues in Euro markets. Other reasons Funds raised from capital markets declined and the amount raised through Euro issue loans also fell down nearly 70 percent over the same period. Continued high levels of government borrowing associated with a large and over-budget fiscal deficit kept money markets tight throughout the period. This in turn put increasing pressure on interest rates. Monetary Growth Despite falling inflation, real rates faced by industry remained high, and the prime lending rate of most of the banks was 16.5 percent. Based on an inflation rate of 6 percent and projected GDP growth of 6.6 percent for 1996-97, monetary growth had been targeted at 15.5-16 percent for 1996-97.

RBI measures The RBI reduced banks' cash reserve requirements by one percentage point, freed bank deposit interest rates of over one year term and shortened the minimum term for deposits from 46 days to 30 days. It also withdrew a refinancing facility for banks' investments in government securities. These steps were to add the equivalent of USD 1.2 billion to the banking sector. Short-term call money market rates of interest and forward premiums on the dollar have dropped sharply. Response While financial and industry sources have welcomed the liquidity-easing measures, they remain worried at the rigidity of high lending rates of interest and suspect that the Government will soon absorb this new bank liquidity by increasing Government borrowing from the market. Growth of M3 Growth in broad money (M3) in 1997-98 registered an increase, higher than the RBI's growth target. The increase was due to a substantial expansion of domestic credit to the government and the business sector, and an increase in net foreign exchange assets. Bank credit to business increased, net RBI credit to the government increased and strong foreign exchange inflows during the first half of 1997-98 coupled with sluggish credit creation ensured that the money market was awash with liquidity. Banks investment in government securities increased by 17.7 percent in 1997-98, and non-food credit to business increased by 14.2 percent. Credit policy The credit policy for April-October 1998, aimed to accelerate industrial investment and output, keep inflation under control, continue financial sector reforms, reduce interest rates and improve credit availability to meet business requirements. Key reference rates were reduced by one percentage point each, sending a strong signal that commercial banks should lower interest rates for commercial borrowers. Banks responded by reducing prime lending rates to 13 percent. The Cash Reserve Ratio requirement was left unchanged at 10 percent. Under the new credit policy, FIIs were allowed to invest up to 30 percent of their assets in treasury bills, and banks were given freedom to fix penalties on premature withdrawal of deposits. In January 1998, the rupee hit a low of Rs 40.45/ dollar, due in large part to concerns about the Asian currency crisis. RBI measures The RBI adopted a number of measures that stopped the rupee's slide and actually led to some appreciation. These measures included an increase in banks' cash reserve ratio and an increase in the RBI's bank rate. Once the rupee had stabilized, the RBI announced a two-phase rollback of the bank rate to 10 percent, and of the CRR to 10 percent. In both cases, the first phase was to be effective from late March and the second in early April. The interest rate on short-term domestic deposits was also deregulated and banks were allowed to set different prime lending rates.

Nationalisation of banks in India

The nationalisation of banks in India took place in 1969 by Mrs. Indira Gandhi the then prime minister. It nationalised 14 banks then. These banks were mostly owned by businessmen and even managed by them. Central Bank of India Bank of Maharashtra Dena Bank Punjab National Bank Syndicate Bank Canara Bank Indian Bank Indian Overseas Bank Bank of Baroda Union Bank Allahabad Bank United Bank of India UCO Bank Bank of India Befor the steps of nationalisation of Indian banks, only State Bank of India (SBI) was nationalised. It took place in July 1955 under the SBI Act of 1955. Nationalisation of Seven State Banks of India (formed subsidiary) took place on 19th July, 1960. The State Bank of India is India's largest commercial bank and is ranked one of the top five banks worldwide. It serves 90 million customers through a network of 9,000 branches and it offers -- either directly or through subsidiaries -- a wide range of banking services. The second phase of nationalisation of Indian banks took place in the year 1980. Seven more banks were nationalised with deposits over 200 crores. Till this year, approximately 80% of the banking segment in India were under Government ownership. After the nationalisation of banks in India, the branches of the public sector banks rose to approximately 800% in deposits and advances took a huge jump by 11,000%. 1955 : Nationalisation of State Bank of India.

1959 : Nationalisation of SBI subsidiaries. 1969 : Nationalisation of 14 major banks. 1980 : Nationalisation of seven banks with deposits over 200 crores.

MAJOR BANKS IN INDIA

In India the banks are being segregated in different groups. Each group has their own benefits and limitations in operating in India. Each has their own dedicated target market. Few of them only work in rural sector while others in both rural as well as urban. Many even are only catering in cities. Some are of Indian origin and some are foreign players. All these details and many more is discussed over here. The banks and its relation with the customers, their mode of operation, the names of banks under different groups and other such useful informations are talked about. One more section has been taken note of is the upcoming foreign banks in India. The RBI has shown certain interest to involve more of foreign banks than the existing one recently. This step has paved a way for few more foreign banks to start business in India.

Major Banks in India ABN-AMRO Bank Abu Dhabi Commercial Bank American Express Bank Andhra Bank Allahabad Bank Axis Bank (Earlier UTI Bank) Bank of Baroda Bank of India Bank of Maharastra Bank of Punjab Bank of Rajasthan Bank of Ceylon BNP Paribas Bank Canara Bank Catholic Syrian Bank

Central Bank of India Centurion Bank China Trust Commercial Bank Citi Bank City Union Bank Corporation Bank Dena Bank Deutsche Bank Development Credit Bank Dhanalakshmi Bank Federal Bank HDFC Bank HSBC ICICI Bank IDBI Bank Indian bank Indian Overseas Bank IndusInd Bank ING Vysya Bank Jammu & Kashmir Bank JPMorgan Chase Bank Karnataka Bank Karur Vysya Bank Laxmi Vilas Bank Oriental Bank of Commerce Punjab National Bank Punjab & Sind Bank

Scotia Bank South Indian Bank Standard Chartered Bank State Bank of India (SBI) State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Indore State Bank of Mysore State Bank of Saurastra State Bank of Travancore Taib Bank UCO Bank Union Bank of India United Bank of India United Western Bank Vijaya Bank Kotak Mahindra Bank Yes Bank

Public Sector Banks In India

Among the Public Sector Banks in India, United Bank of India is one of the 14 major banks which were nationalised on July 19, 1969. Its predecessor, in the Public Sector Banks, the United Bank of India Ltd., was formed in 1950 with the amalgamation of four banks viz. Comilla Banking Corporation Ltd. (1914), Bengal Central Bank Ltd. (1918), Comilla Union Bank Ltd. (1922) and Hooghly Bank Ltd. (1932). Oriental Bank of Commerce (OBC), a Governmet of India Undertaking offers Domestic, NRI and Commercial banking services. OBC is implementing a GRAMEEN PROJECT in Dehradun District (UP) and Hanumangarh District (Raiasthan) disbursing small loans. This Public Secotor Bank India has implemented 14 point action plan for strengthening of credit delivery to women and has designated 5 branches as specialized branches for women entrepreneurs. The following are the list of Public Sector Banks in India Allahabad Bank

Andhra Bank Bank of Baroda Bank of India Bank of Maharastra Canara Bank Central Bank of India Corporation Bank Dena Bank IDBI Bank Indian Bank Indian Overseas Bank Oriental Bank of Commerce Punjab National Bank Syndicate Bank UCO Bank Union Bank of India United Bank of India Vijaya Bank List of State Bank of India and its subsidiary, a Public Sector Banks

State Bank of India State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Indore State Bank of Mysore State Bank of Saurastra State Bank of Travancore

Private Sector Banks

In India was practiced since the begining of banking system in India. The first private bank in India to be set up in Private Sector Banks in India was IndusInd Bank. It is one of the fastest growing Bank Private Sector Banks in India. IDBI ranks the tength largest development bank in the world as Private Banks in India and has promoted a world class institutions in India. The first Private Bank in India to receive an in principle approval from the Reserve Bank of India was Housing Development Finance Corporation Limited, to set up a bank in the private sector banks in India as part of the RBI's liberalisation of the Indian Banking Industry. It was incorporated in August 1994 as HDFC Bank Limited with registered office in Mumbai and commenced operations as Scheduled Commercial Bank in January 1995. ING Vysya, yet another Private Bank of India was incorporated in the year 1930. Bangalore has a pride of place for having the first branch inception in the year 1934. With successive years of patronage and constantly setting new standards in banking, ING Vysya Bank has many credits to its account. List of Private Banks in India Bank of Punjab Bank of Rajasthan Catholic Syrian Bank Centurion Bank City Union Bank Dhanalakshmi Bank Development Credit Bank Federal Bank HDFC Bank ICICI Bank IndusInd Bank ING Vysya Bank Jammu & Kashmir Bank Karnataka Bank Karur Vysya Bank Laxmi Vilas Bank South Indian Bank United Western Bank

INTRODUCTION OF THE COMPANY

HDFC Bank

Type

Public (BSE: 500180, NYSE: HDB) Banking Financial services August 1994 Bibu Verghese Mumbai, India C.M. Vasudev (Chairman) Aditya Puri (MD) Investment Banking Commercial Banking Retail Banking Private Banking Asset Management Mortgages Credit Cards[1] 20,266 crore (US$4.5 billion) (2010)[2] 4,419 crore (US$981.02 million) (2010)[2] 3,032 crore (US$673.1 million)

Industry Founded Founder(s) Headquarters

Key people

Products

Revenue Operating income Profit

(2010)[2] Total equity Employees Website US$ 39.723 billion (2009)[2] 21,158 crore (US$4.7 billion) (2010)[2] 51,888 (2010)[3] HDFCBank.com

HDFC Bank Ltd. (BSE: 500180, NYSE: HDB) is a major Indian financial services company based in India, incorporated in August 1994, after the Reserve Bank of India allowed establishing private sector banks. The Bank was promoted by the Housing Development Finance Corporation, a premier housing finance company (set up in 1977) of India. HDFC Bank has 1,725 branches and over 4,232 ATMs, in 779 cities in India, and all branches of the bank are linked on an online real-time basis. As of 30 September 2008 the bank had total assets of Rs.1006.82 billion.[4] For the fiscal year 2008-09, the bank has reported net profit of 2,244.9 crore (US$498.37 million), up 41% from the previous fiscal. Total annual earnings of the bank increased by 58% reaching at 19,622.8 crore (US$4.36 billion) in 2008-09.[5]

RESEARCH OBJECTIVES
First and foremost objective is to find out the reasons for using advance product from HDFC. To find out the services that other bank give to their customers To build the relationship with the customer and to follow up them, make sure that they are satisfied with the product. To maintain good relationship with the corporate employees. To place HDFC product ahead of the competitors To find out the customers on booming advance product market and to find out the using patterns of the people.

Contents [hide]

1 History 2 Business focus o 2.1 Wholesale banking services o 2.2 Retail banking services o 2.3 Treasury 3 Distribution network

4 References 5 External links

History HDFC Bank was incorporated in 1994 by Housing Development Finance Corporation Limited (HDFC), India's largest housing finance company. It was among the first companies to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. The Bank started operations as a scheduled commercial bank in January 1995 under the RBI's liberalisation policies.

Times Bank Limited (owned by Bennett, Coleman & Co. / Times Group) was merged with HDFC Bank Ltd., in 2000. This was the first merger of two private banks in India. Shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank. -In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total branches to more than 1,000. The amalgamated bank emerged with a base of about Rs. 1,22,000 crore and net advances of about Rs.89,000 crore. The balance sheet size of the combined entity is more than Rs. 1,63,000 crore. Business focus HDFC Bank deals with three key business segments. - Wholesale Banking Services, Retail Banking Services, Treasury. It has entered the banking consortia of over 50 corporates for providing working capital finance, trade services, corporate finance and merchant banking. It is also providing sophisticated product structures in areas of foreign exchange and derivatives, money markets and debt trading and equity research. Wholesale banking services blue-chip manufacturing companies in the Indian corp to small & mid-sized corporates and agri-based businesses. For these customers, the Bank provides a wide range of commercial and transactional banking services, including working capital finance, trade services, transactional services, cash management, etc. The bank is also a leading provider of for its to corporate customers, mutual funds, stock exchange members and banks. Retail banking services The objective of the Retail Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one-stop window for all his/her banking requirements. The products are backed by world-class service and delivered to customers through the

growing branch network, as well as through alternative delivery channels like ATMs, Phone Banking, NetBanking and Mobile Banking. HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (VISA Electron) and issues the Mastercard Maestro debit card as well. The Bank launched its credit card business in late 2001. By March 2009, the bank had a total card base (debit and credit cards) of over 13 million. The Bank is also one of the leading players in the merchant acquiring business with over 70,000 Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant establishments. The Bank is well positioned as a leader in various net based B2C opportunities

including a wide range of internet banking services for Fixed Deposits, Loans, Bill Payments, etc. Treasury Within this business, the bank has three main product areas - Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. These services are provided through the bank's Treasury team. To comply with statutory reserve requirements, the bank is required to hold 25% of its deposits in government securities. The Treasury business is responsible for managing the returns and market risk on this investment portfolio. -Distribution network

An HDFC Bank Branch HDFC Bank is headquartered in Mumbai. The Bank has an network of 1725 branches spread in 780 cities across India. All branches are linked on an online real-time basis. Customers in over 500 locations are also serviced through Telephone Banking. The Bank has a presence in all major industrial and commercial centres across the country. 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 5,016 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 America n Express Credit/Charge cardholders.

HDFC | HDFC Bank | HDFC Online

HDFC HDFC Bank and HDFC Ltd differ to each other. HDFC bank deals in all credit cards, Insurance and Lending services except Home Loan whereas HDFC ltd deals only in Home Loan. HDFC Bank: HDFC was incorporated in August 1994, and, currently has a nationwide network of more than 1,725 Branches and 4,000 ATMs in over 771 Indian towns and cities. HDFC bank Portfolio Loans Debit Cards Accounts and Deposits Investment and Insurance Loan Products: HDFC Credit Card Forex and Trade services

-Havent you occasionally dreamt of buying a Dream Home, a car of your choice or even traveling
abroad? Your dreams are now within your reach. Whatever your need, HDFC bank offers an entire range of loan products for you. HDFC Bank has a Long List of Available Loan Products Home Loan Personal Loan Two Wheeler Loan Car Loan Old Car Loan Smart Draft Gold Loan Education Loan Loans against Securities Loans against Property Loan against Rent Receivables Tractor Loans Health Care Finance Commercial Vehicle Finance Construction Equipment Finance

Click on the links for Apply and Know more about:

HDFC Personal Loan HDFC Car Loan HDFC Credit Card Card Products:

Classic Cards

Special Benefit Cards

Premium Cards

Commercial Cards

Premium Cards:Gold Credit Card: Get an HDFC Bank International Gold Card and get introduced to a whole new world of privileges. Titanium Credit Card: The HDFC Bank Titanium Credit Card is quite simply the most exclusive Credit card you could ask for. Find out all it can do for you. And youll never be satisfied with anything less. Platinum Plus Credit Card: Indias only Platinum Plus Credit Card offering exclusive benefits. It is the recognition of those who have arrived in life. Visa Signature Credit Card: HDFC Bank Visa Signature Credit Card, that grants you preferential access to services and benefits around the world. Customer cares representatives provide round-the-clock assistance to help you avail these benefits

World MasterCard Credit Card: HDFC Bank presents the World MasterCard Credit Card a very premium offering for the truly elite. A card with tailor-made premium privileges that complement a discerning lifestyle.

-Investments and Insurance: Mutual Funds: Mutual funds are funds that pool the money of several investors to invest in equity or debt markets. Mutual Funds could be Equity funds, Debt funds or balanced funds. Funds are selected on quantitative parameters like volatality, FAMA Model, risk adjusted returns, rolling return coupled with a qualitative analysis of fund performance and investment styles through regular interactions / due diligence processes with fund managers.

Systematic Investment Plan The discipline and the tool Systematic Investment Plan is an approach to investing within managed investments which involves investing a set of amount at regular intervals rather than investing a larger lump sum amount in one shot. By investing this way you are not attempting to capture the highs and lows of the market but rather the cost of your investment is averaged over a period of time. The essence of SIPs is that when the markets fall investors automatically acquire more units. Likewise they acquire lesser units when the market rises. This means that you buy less when the price is high whereas you buy more the price is low. Hence the average cost per unit drops down over a period of time. Tax Planning: HDFC Bank offer a number of advantageous tax saving investment options. Insurance: Life insurance is designed to offer financial protection for you and your family during the times of uncertainties. Choose from a range of traditional insurance and unit linked plans designed to help you with your savings, retirement, investment and protection needs.

General Insurance: Complete protection for your home, travel & more. Health Insurance: Complete protection for your health. Bonds: A secure investment avenue giving you stable returns with tax benefits. Equities & Derivatives: Leverage our vast information repository and transact online. Mudra Gold Bar: Buy 24 Karat gold bars made in Switzerland and certified by Assay.

HDFC Standard Life Spell Bee - India Spells 2010 The second season of much awaited 'HDFC Standard Life Spell Bee - India Spells 2010', the Indian counterpart of the highly acclaimed Spell Bee, USA, kick starts in your city today. Spell Bee 2010 is a unique and scholarly education series in a fun-filled quiz format under the patronage of Spelling Bee USA, a prestigious annual event in the US with a lineage of 85 years. The last season of Spell Bee India Spells 2009 received an overwhelming response from parents, teachers from over 650 schools across 11 cities. The second season is being conducted on a bigger platform, inviting participants from around 2000 schools across 12 cities (Delhi, Lucknow, Chandigarh, Jaipur, Kolkata, Mumbai, Pune, Ahmedabad, Bengaluru, Kochi, Hyderabad, and Chennai) and students of 6th, 7th, 8th, 9th grades to participate. Keeping in mind the resounding success of Spell Bee in Delhi last year, the second season of Spell Bee has sought participation from 2000 schools, as compared to 700 schools last year. The competition will be organized at Sawan Public School, Bhatti Mines Road, New Delhi. Speaking about Spell Bee Mr. Rajeev Banerjee, Vice-President, Alternate Brand Solutions India Limited said, "The English language has over the years been woven with much prominence into India's lingual fabric. Spell Bee aims at strengthening the basics of the language amongst Indian students and give a fillip to their proficiency in English. The contest brings back the spelling mania for young Indians that swept the nation previous year. The success and participation of Spell Bee can be gauged from the fact that an Indian student won the international competition in 2009. This year the competition gets bigger and better. We have included Cochin to the list of participating cities and look forward to garner maximum contribution from students and parents in continuing the legacy of Spell Bee all over the country. HDFC Standard Life has partnered with the event for the second consecutive year which stands testimony to its phenomenal success last year"

Announcing the association of HDFC Standard Life with India Spells 2010, Mr. Sanjay Tripathy, Executive Vice President and Head, Marketing, HDFC Standard Life said "In today's digital age, where SMS lingo rules most of our written communication, a competition such as Spell Bee encourages students to brush-up their spellings and improve their vocabulary. In fact, a research conducted by HDFC Standard Life in association with IMRS Advisory, among premier schools across 5 cities in India (Bangalore, Delhi, Mumbai, Kolkata and Hyderabad), 98% of teachers said that cultivating good spelling skills are extremely important for students in the early years of growth and development and 96% of the teachers stated that the correct usage of spellings is extremely important in developing a successful career. They reasoned that good spelling skills leads to sound verbal and written communication, builds confidence, improves opportunities and thereby gives them an edge over others. In line with our brand philosophy, we believe in educative and enlightening programmes that help young minds to grow. As a life insurance player, we are committed to support every parent's dream of seeing their child develop his/her potential with our products that offer unique features to take care of the child's immediate and future needs. We are confident that Spell Bee India Spell 2010 will achieve its objective". Students can experience the elation and excitement of the competition and hone their spelling skills by watching the excerpts of the event on National Geographic Channel, commenting on the association with the 'HDFC Standard Life Spell Bee-India Spells 2010', Mr. Jay Kumar, National Sales Head, NGC said, "We are extremely happy to be a part of the second edition of Spell Bee. After the city wise rounds, the winners will participate in the Grand Finale in Mumbai. The winner along with one of the parent of the Grand Finale will be sent by The Times Group to experience the Scripps National Spelling Bee at Washington DC in May 2010. About Alternate Brand Solutions India Limited The Intellectual Property Rights team at ABSIL - 360 Degrees has continuously managed to create smart properties with meaningful content, always in tune with present day thoughts. Few of the properties like Teen Diva have showcased the impactful and talented Indian youth leading them to an international platform. Similarly, the Spell Bee property classified in Education helped to engage Indian students to improve their spellings and increase their vocabulary skills, TechLife Awards within the Lifestyle Technology Space category was the country's first ever Gadget Awards that was a celebration of the hottest gadgets and the coolest technologies that changed lives. The team also handles Film fare Awards popularly known as the Oscars of India that highlight the Bollywood Industry and the ever-popular Femina Miss India in the Beauty Pageant segment with phenomenal response year after year. Various properties have been created over the last couple of years, and we continue to provide customized, impactful solutions for new concepts across an assorted range of segments. About HDFC Standard Life HDFC Standard Life, one of India's leading private life insurance companies, offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC), India's leading housing finance institution and Standard Life plc, the leading provider of financial services in the United Kingdom. HDFC Standard Life's Product portfolio comprises solutions,

which meet various customer needs such as Protection, Pension, Savings, Investment, and Health. Customers have the added advantage of customizing the Plans, by adding optional benefits called riders, at a nominal price. The company currently has 25 retail and 6 group products in its portfolio, along with five optional rider benefits catering to the savings, investment, protection and retirement needs of customers

SWOT Analysis of HDFC Bank

SWOT of HDFC Bank Strengths : 1. 2. 3. 4. 5. 6. 7. 8. Right strategy for the right products. Superior customer service vs. competitors. Great Brand Image. -Products have required accreditation. High degree of customer satisfaction. Good place to work Lower response time with efficient and effective service. Dedicated workforce aiming at making a long-term career in the field.

Weakness : 1. 2. 3. 4. 5. Some gaps in range for certain sectors. Customer service staff need training. Processes and systems, etc Management cover insufficient. Sectoral growth is constrained by low unemployment levels and competition for staff

Opportunities : 1. 2. 3. 4. 5. 6. Profit margins will be good. Could extend to overseas broadly. New specialist applications. Could seek better customer deals. Fast-track career development opportunities on an industry-wide basis. An applied research center to create opportunities for developing techniques to provide addedvalue services.

Threats : -

1. 2. 3. 4. 5. 6.

Legislation could impact. Great risk involved Very high competition prevailing in the industry. Vulnerable to reactive attack by major competitors. Lack of infrastructure in rural areas could constrain investment. High volume/low cost market is intensely competitive.