Anda di halaman 1dari 27

IFBI

Project Report: Retail Asset Products of HDFC Bank

In Partial Fulfillment of PGDB course of IFBI Jaipur Centre

Project Prepared by:

Yashdeep shrivastava

PGDB Batch: B120024


Roll No: 8

Table of Contents
Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Topic Overview of HDFC Bank Business focus of HDFC Bank Wholesale banking services Page No. 3 4 4 4 5 6 7 7 8 9 10 11 14 14 16 19 22 23 25 26 27

Retail banking services

Branches of HDFC Bank Management Shareholding Pattern and Liquidity Products Of HDFC Bank Business Competitors of HDFC Bank Different Products of HDFC Bank Awards and Recognition Project Study - Retail Asset Products of HDFC Bank i. Home Loan ii. Car Loan iii. Education Loan iv. Personal Loan v. Loan against Property/Gold Ornaments vi. Loan against Shares/Debentures 14. Conclusion 15. Bibliography and References

OVERVIEW of HDFC Bank


HDFC Bank is the biggest banking and financial services company in India by revenue, assets and market capitalization August 1994. It is a private-owned corporation with its headquarters in Mumbai, Maharashtra. HDFC Bank is the fifth or sixth largest bank in India by assets and the second largest bank by market capitalization as of February 24, 2012. The bank was promoted by the Housing Development Finance Corporation, a premier housing finance company (set up in 1977) of India. HDFC Bank has 1,986 branches and over 5,471 ATMs, in 996 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. For the fiscal year 2010-11, the bank has reported net profit of 3,926.30 crore (US$783.3 million), up 33.1% from the previous fiscal. Total annual earnings of the bank increased by 20.37% reaching at 24,263.4 crore (US$4.84 billion) in 2010-11. HDFC Bank is one of the Big Four banks of India, along with: State Bank of India, ICICI Bank and Punjab National Bank. HDFC Bank provides a range of banking products through its vast network of branches in India and overseas, including products aimed at non-resident Indians (NRIs). HDFC Bank has the largest branch and ATM network spread across every corner of India. The bank has a branch network of over 12,000 branches. Apart from Indian network it also has a network of 157 overseas offices in 4 countries in all time zones, correspondent relationship with 52 International banks in 123 countries. 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. HDFC Bank is a regional banking behemoth and is one of the largest financial institutions in the world. It has a market share among Indian commercial banks of about 20% in deposits and loans. The State Bank of India is the 29th most reputed company in the world according to Forbes. Also, HDFC Bank is the only bank featured in the coveted "top 10 brands of India" list in an annual survey conducted by Brand Finance and The Economic Times in 2010. It is ranked #292 globally in Fortune Global 500 list in 2011. The HDFC Bank is the largest of the Big Four banks of India, along with ICICI Bank, Punjab National Bank and State Bank of India its main competitors.

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. HDFC bank policy is to charge maximum from customers while providing the same or less service as compared to other banks. Minimum balance required for saving account is Rs. 10,000.00 while there are banks in the market like IDBI which provide zero balance account with far better features from HDFC saving account. Servers on Saturdays may be down, there is no toll-free number from Delhi-NCR. A demand draft costs Rs. 75. If you get bank statement from other branch of HDFC, it'll cost you Rs. 110 and chances are you won't be informed about these charges. And if you wish to close your saving account before a certain period (at present six months), a certain amount of money will be deducted from your account. Again its very likely that you won't be informed about such charges during opening of your account.

Wholesale banking services


Blue-chip manufacturing companies in the Indian corp to small & mid-sized corporates and agribased 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[clarification needed] for its corporate customers, mutual funds, stock exchange members and banks.

Retail banking services


HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (Visa Electron) and issues the Master card 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 positioned in various net based B2C opportunities including a wide range of internet banking services for Fixed Deposits, Loans, Bill Payments, etc. With Finest of Technology and Best of Man power in Banking Industry HDFC BANK's retail services have become by and large the best in India and since the contribution to CASA i.e. total number of current and savings account of more than 50% ,HDFC BANK has full potential to become Indias No.1 Private Sector Bank. HDFC Bank website including hdfcbank.com and hdfcsec.com are not available 24X7. This has become a habit of HDFC Bank. Customers of the HDFC Bank are requested to check the website availability 24 X 7 and if available can do the transaction. If the website is not available they are asked to visit their home branch.

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. 4

Branches of HDFC Bank


HDFC Bank has 172 foreign offices in 37 countries across the globe. HDFC Bank has about 25,000 ATMs (25,000th ATM was inaugurated by the then Chairman of State Bank Shri O.P. Bhatt on 31 March 2011, the day of his retirement); and HDFC BANK group (including associate banks) has about 45,000 ATMs. HDFC Bank has 21,500 branches, including branches that belong to its associate banks. HDFC Bank includes 99345 offices in India. India's number one ADB is in bellary i.e. State bank of India bellary ADB

International presence
As of December 31, 2009, the bank had 157 overseas offices spread over 32 countries. It has branches of the parent in Colombo, Dhaka, Frankfurt, Hong Kong, Tehran, Johannesburg, London, Los Angeles, Male in the Maldives, Muscat, Dubai, New York, Osaka, Sydney, and Tokyo. It has offshore banking units in the Bahamas, Bahrain, and Singapore, and representative offices in Bhutan and Cape Town. It also has an ADB in Boston, USA. HDFC bank operates several foreign subsidiaries or affiliates. In 1982, the bank established a subsidiary, HDFC bank (California), which now has ten branches nine branches in the state of California and one in Washington, D.C. The 10th branch was opened in Fremont, California on 28 March 2011. The other eight branches in California are located in Los Angeles, Artesia, San Jose, Canoga Park, Fresno, San Diego, Tustin and Bakersfield. The Canadian subsidiary, HDFC bank (Canada) also dates to 1982. It has seven branches, four in the Toronto area and three in British Columbia. In Nigeria, This bank began in 1981 as the IndoNigerian Merchant Bank and received permission in 2002 to commence retail banking. It now has five branches in Nigeria. In Nepal, HDFC bank owns 55% of Nepal HDFC bank, which has branches throughout the country. In Moscow, HDFC bank owns 60% of Commercial Bank of India, with Canara Bank owning the rest. In Indonesia, it owns 76% of PT Bank Indo Monex. The HDFC bank already has a branch in Shanghai and plans to open one in Tianjin. In Kenya, State Bank of India owns 76% of Giro Commercial Bank, which it acquired for US$8 million in October 2005. The HDFC bank (with 74% of the total capital) along with the largest global banking groupBNP Paribas (with 26% of the remaining capital) headquartered in Parisformed a joint venture which established India's most reputed and trusted life insurance company named HDFC bank Life Insurance company Ltd. in March 2001.

Management
Mr. C.M. Vasudev has been appointed as the Chairman of the Bank with effect from 6th July 2010. Mr. Vasudev has been a Director of the Bank since October 2006. A retired IAS officer, Mr. Vasudev has had an illustrious career in the civil services and has held several key positions in India and overseas, including Finance Secretary, Government of India, Executive Director, World Bank and Government nominee on the Boards of many companies in the financial sector. The Managing Director, Mr. Aditya Puri, has been a professional banker for over 25 years, and before joining HDFC Bank in 1994 was heading Citibank's operations in Malaysia. The Bank's Board of Directors is composed of eminent individuals with a wealth of experience in public policy, administration, industry and commercial banking. Senior executives representing HDFC are also on the Board. Senior banking professionals with substantial experience in India and abroad head various businesses and functions and report to the Managing Director. Given the professional expertise of the management team and the overall focus on recruiting and retaining the best talent in the industry, the bank believes that its people are a significant competitive strength.

Shareholding & Liquidity (Till 30th Sept. 2011)


Leveraging the knowledge and experience of some of the finest financial advisors, HDFC Bank offers its clients a range of strategic and innovative wealth management solutions. Our bouquet of services ensures that our clients can pursue an individualized plan to achieve their investment goals. Our product suite is a one-stop solution for your entire portfolio needs across equity, fixed income, mutual funds, structured products, estate planning, etc. customized to your risk-return profile. Our product suite includes:

Product suite includes:


Direct Equity

Our in-house equity research desk provides recommendations based on strong company fundamental analyses. This is supported by a network of analysts with expertise in key sectors across industries. Our equity desk tracks various sectors and uses a mix of top down and bottom-up approach to identify stocks. Exposure to these is recommended on the basis of your risk profile - be it conservative, aggressive or moderate. The direct equity product offering include:

Model Portfolio (Aggressive & Conservative) Stock Flash Regular company/result updates Regular company updates Thematic Notes: These notes are largely sent to discuss important events/themes that are impacting the markets and desk views on the same Market Impact: These are notes on quarterly analysis of the companies of the model portfolios

Sector report/ Sector Update: These are notes on a specific sector, explaining the basic business model and subsequent updates on the current scenario in the sector
Mutual Funds

We offer a complete range of equity, debt and ultra-short term income funds and liquid funds to meet individual risk-return objectives. The selection of mutual funds is based on wide parameters and built on statistical models and quantitative tools like standard deviation, volatility, rolling returns, expense ratio and more. The funds are distributed to clients across top AMCs and are built on the principles of conservative approach and focused advice. MAAG (mutual fund analysis tool) is used to analyze the equity and balanced mutual fund holdings with respect to the asset allocation, market capitalization, sectoral holdings and company holdings.
Fixed Income Products

We offer fixed income products like government bonds, tax-free bonds, fixed maturity plans, income funds; Bank Deposit, etc. in line with the client's risk-return profile. Capital Gains Bonds like NABARD, NHAI, REC and RBI Bonds are also provided to clients.
Insurance

Insurance solutions offer an advanced means of managing wealth, offering succession planning tools for UHNW individuals. We offer customized insurance solutions to meet the lifecycle needs of the client through our partner HDFC Life.

Life Insurance 7

General Insurance (General insurance products are provided through our partner HDFC ERGO covering your entire risk spectrum)

Business Insurance wherever there is an insurable interest of the business Estate Planning Estate Planning permits you to protect your wealth and transfer it to future generations. We offer a wide range of products and well-thought approach to transfer your assets to the next generation according to your objectives and wishes. Estate planning services are provided through our partner Warmond Trustees & Executors Pvt. Ltd. Warmond's estate planning services provide clients peace of mind by ensuring their estate is in order and their loved ones will always be taken care of. The professional team comprises of investment, banking and legal experts who provide clients specialized advice in all areas of estate planning. Client needs are met through:

Prudent Succession & Estate Planning Efficient tax planning Smooth distribution & transfer of assets to identified beneficiaries Dependable Trustees / Escrow agents / Managers to handle and preserve family fortune Uninterrupted management of assets Trust management & Wills Confidentiality

Business
The business of the banks was initially confined to discounting of bills of exchange or other negotiable private securities, keeping cash accounts and receiving deposits and issuing and circulating cash notes. Loans were restricted to Rs.one Lakh and the period of accommodation confined to three months only. The security for such loans was public securities, commonly called Company's Paper, bullion, treasure, plate, jewels, or goods 'not of a perishable nature' and no interest could be charged beyond a rate of twelve per cent. Loans against goods like opium, indigo, salt woollens, cotton, cotton piece goods, mule twist and silk goods were also granted but such finance by way of cash credits gained momentum only from the third decade of the nineteenth century. All commodities, including tea, sugar and jute, which began to be financed later, were either pledged or hypothecated to the bank. Demand promissory notes were signed by the borrower in favour of the guarantor, which was in turn endorsed to the bank. Lending against shares of the banks or on the mortgage of houses, land or other real property was, however, forbidden.

Indians were the principal borrowers against deposit of Company's paper, while the business of discounts on private as well as salary bills was almost the exclusive monopoly of individuals Europeans and their partnership firms. But the main function of the three banks, as far as the government was concerned, was to help the latter raise loans from time to time and also provide a degree of stability to the prices of government securities.

In 1951, when the First Five Year Plan was launched, the development of rural India was given the highest priority. The commercial banks of the country including the Imperial Bank of India had till then confined their operations to the urban sector and were not equipped to respond to the emergent needs of economic regeneration of the rural areas. In order, therefore, to serve the economy in general and the rural sector in particular, the All India Rural Credit Survey Committee recommended the creation of a state-partnered and state-sponsored bank by taking over the Imperial Bank of India, and integrating with it, the former state-owned or state-associate banks. An act was accordingly passed in Parliament in May 1955 and the State Bank of India was constituted on 1 July 1955. More than a quarter of the resources of the Indian banking system thus passed under the direct control of the State. Later, the State Bank of India (Subsidiary Banks) Act was passed in 1959, enabling the State Bank of India to take over eight former State-associated banks as its subsidiaries (later named Associates). The State Bank of India was thus born with a new sense of social purpose aided by the 480 offices comprising branches, sub offices and three Local Head Offices inherited from the Imperial Bank. The concept of banking as mere repositories of the community's savings and lenders to creditworthy parties was soon to give way to the concept of purposeful banking subserving the growing and diversified financial needs of planned economic development. The State Bank of India was destined to act as the pacesetter in this respect and lead the Indian banking system into the exciting field of national development.

Competitors and other players in the field:Top Performing Public Sector Banks
HDFC BANK Bank Andhra Bank Allahabad Bank Bank of Baroda Bank of India Punjab National Bank

Top Performing Private Sector Banks


ICICI Bank AXIS Bank

Kotak Mahindra Bank Yes Bank

Top Performing Foreign Banks


Citibank Standard Chartered HSBC Bank ABN AMRO Bank American Express

DIFFERENT PRODUCTS OF HDFC Bank:


DEPOSIT Savings Account Life Plus Senior Citizens Savings Account Fixed Deposits Security Deposits Recurring Deposits Loans against Securities Two Wheeler Commercial Cards LOANS Home Loans Loan Against Property CARDS Consumer Cards Credit Card DIFFERENT CREDIT CARDS HDFC International cards HDFC Gold cards

Personal Loans Car Loan

Travel Card

HDFC Gold Master cards Your City Your Cards

Debit Cards

Tax-Saver Fixed Deposit

Corporate Cards

Partnership Cards

10

Salary Account

Preapproved Loans Retail Asset

Prepaid Card

Advantage Woman Savings Account Rural Savings Account People's Savings Account Freedom Savings Account

Purchase Card

HDFC Employee Cards

Farmer Finance Business Installment Loans Flexi Cash

Distribution Cards Business Card HDFC Advantage Cards

Merchant Services

Awards & Winnings


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. 2012

UTI Mutual Fund CNBC TV 18 Financial Advisor Awards 2011

- Best Performing Bank - Private

Asian Banker - Best Retail Bank in India International - Best Bancassurance Excellence in Retail - Best Risk Management Financial Services Awards 2012 5th Loyalty Summit Customer and Brand Loyalty award

11

Skoch foundation 2012 ICAI Awards 2011 2011

SHG/JLG linkage programme Excellence in Financial Reporting

Outlook Money Best Bank Award 2011 Best Commercial Vehicle Financier

- Best Bank - Runner Up

- Driving Positive Change

Businessworld Best - Best Bank Bank award BCI Continuity & Resilience Award Financial Express Best Bank Survey 2010-11 - Most Effective Recovery of the Year - Best in Strength and Soundness - 2nd Best in the Private Sector

CNBC TV18's Best - Best Bank Bank & Financial - Mr. Aditya Puri, Outstanding Finance Professional Institution Awards Dun & Bradstreet Banking Awards 2011 Best Private Sector Bank - SME Financing

ISACA 2011 award Best practices in IT Governance and IT Security for IT Governance IBA Productivity Excellence Awards 2011 New Channel Adopter (Private Sector)

DSCI (Data Security in Bank Security Council of India) Excellence Awards 2011 Euromoney Awards Best Bank in India for Excellence 2011 FINANCE ASIA Country Awards 2011: India Asian Banker - BEST BANK - BEST CASH MANAGEMENT BANK - BEST TRADE FINANCE BANK Strongest Bank in Asia Pacific

12

BloombergUTV's Financial Leadership Awards 2011 IBA Banking Technology Awards 2010

Best Bank

Winner 1) Technology Bank of the Year 2) Best Online Bank 3) Best Customer Initiative 4) Best Use of Business Intelligence 5) Best Risk Management System Runners Up Best Financial Inclusion Excellence in Customer Experience

IDC FIIA Awards 2011 2010

Outlook Money 2010 Awards

Best Bank

Businessworld Best Best Bank (Large) Bank Awards 2010 Teacher's Achievement Awards 2010 (Business) The Banker and PWM 2010 Global Private Banking Awards Economic Times Awards for Corporate Excellence 2010 Forbes Asia NDTV Business Leadership Awards 2010 The Banker Magazine MIS Asia IT Excellence Award Mr. Aditya Puri

Best Private Bank in India

Business Leader of the Year - Mr. Aditya Puri

Fab 50 Companies - 5th year in a row Best Private Sector Bank

World's Top 1000 Banks BEST BOTTOM-LINE I.T. Category

13

2010 Dun & Bradstreet Banking Awards 2010 Institutional Investor Magazine Poll Overall Best Bank Best Private Sector Bank Best Private Sector Bank in SME Financing HDFC Bank MD, Mr. Aditya Puri among "Asian Captains of Finance 2010"

IDRBT Technology Winner - 1) IT Infrastructure 2) Use of IT within the Bank 2009 Awards Runners-up - IT Governance (Large Banks) ACI Excellence Awards 2010 FE-EVI Green Business Leadership Award Highly Commended - Asia Pacific HDFC Bank Best performer in the Banking category

Celent's 2010 Model Bank Award Banking Innovation Award Avaya Global Connect 2010 Forbes Top 2000 Companies Financial Express Ernst & Young Survey 2009-10 Asian Banker Excellence Awards 2010 Customer Responsiveness Award - Banking & Financial Services category Our Bank at 632nd position and among 130 Global High Performers

Best New Private Sector Bank Best in Growth Best in strength Best Retail Bank in India Excellence in Automobile Lending Best M&A Integration Technology Implementation

The Asset Triple A Awards Euromoney Private Banking and Wealth Management Poll 2010 Financial Insights Innovation Awards

Best Cash Management Bank in India 1) Best Local Bank in India (second year in a row) 2) Best Private Banking Services overall (moved up from No. 2 last year)

Innovation in Branch Operations - Server Consolidation Project

14

2010 Global Finance Award 2 Banking Technology Awards 2009 SPJIMR Marketing Impact Awards (SMIA) 2010 Business Today Best Employer Survey Best Trade Finance Provider in India for 2010 1) Best Risk Management Initiative and 2) Best Use of Business Intelligence. 2nd Prize

Listed in top 10 Best Employers in the country

Project Study: Retail Asset Products of HDFC Bank:


Now a days not all the people have the capacity to fulfill their requirement by their own earning, thats why they need help from others. For this the government & private sector bank provide them with money to fulfill their requirement, which is called as the Retail Credit Products (loan products) of the bank. Banks have so many different types of retail credit products as per the requirement of the people or customers. HDFC Bank also provide loan to the people for different causes.

Types of Retail Asset/Credit Products


Home Loan Educational Loan Car Loan Personal Loan Property Loan Loan Against Shares\Debentures, etc

HDFC Home Loans:


Purpose Purchase/ Construction of House/ Flat Purchase of a plot of land for construction of House Extension/ repair/ renovation/ alteration of an existing House/ Flat Purchase of Furnishings and Consumer Durables as a part of the project cost.

15

Takeover of an existing loan from other Banks/ Housing Finance Companies. Eligibility Minimum age 18 years as on the date of sanction Maximum age limit for a Home Loan borrower is fixed at 70 years, i.e. the age by which the loan should be fully repaid. Availability of sufficient, regular and continuous source of income for servicing the loan repayment. Loan Amount 40 to 60 times of Net Monthly Income (NMI), depending on repayment capacity as % of NMI as under Net Annual Income Upto Rs.2 lacs Above Rs. 5 lacs EMI/NMI Ratio 40% 55%

Above Rs.2 lac to Rs. 5 lacs 50%

To enhance loan eligibility you have option to add: 1. Income of your spouse/ your son/ daughter living with you, provided they have a steady income and his/ her salary account is maintained with HDFC BANK. 2. Expected rent accruals (less taxes, cess, etc.) if the house/ flat being purchased is proposed to be rented out. 3. Depreciation, subject to some conditions. 4. Regular income from all sources

Margin (Special Festival Season Offer) Purchase/ Construction of a new House/ Flat/ Plot of land: 15% for loans up to Rs. 1 cr., 20% for loans above Rs. 1 cr. Repairs/ Renovation of an existing House/ Flat: 15%

Interest Rates w.e.f 31.3.2012 HOME LOANS - INTEREST RATES


All Rate are floating only (Base Rate= 10.00% p.a.) Loan Amount Linkage with Base Rate over the tenor of the loan Upto Rs. 0.75% above Base 10.75% p.a.* Effective Rate

16

30.00 lacs Above Rs. 30.00 lacs and upto Rs. 75.00 lacs Above Rs. 75.00 lacs

Rate 1.00% Rate 1.25% Rate above Base 11.25% p.a.* above Base 11.00% p.a.*

No fixed rate option in any limit bracket.

CAR LOAN:
Purpose You can take finance for: A new car, jeep or Multi Utility Vehicles (MUVs) A used car / jeep (not more than 5 years old). (Any make or model). Take over of existing loan from other Bank/Financial institution (Conditions apply)

Eligibility To avail an HDFC Bank Car Loan, you should be :


Individual between the age of 21-65 years of age. A Permanent employee of State / Central Government, Public Sector Undertaking, Private company or a reputed establishment or A Professionals or self-employed individual who is an income tax assessee or A Person engaged in agriculture and allied activities. Net Annual Income Rs. 100,000/- and above.

Salient Features Loan Amount There is no upper limit for the amount of a car loan. A maximum loan amount of 2.5 times the net annual income can be sanctioned. If married, your spouse's income could also be considered provided the spouse becomes a co-borrower in the loan. The loan amount includes finance for one-time road tax, registration and insurance! No ceiling on the loan amount for new cars. Loan amount for used car is subject to a maximum limit of Rs. 15 lacs. Type of Loan 1. Term Loan 2. Overdraft - a) For New vehicles only b) Minimum loan amount: Rs. 3 lacs.

17

Repayment You enjoy the longest repayment period in the industry with us. Repayment period: For Salaried: Maximum of 84 months For Self-employed & Professionals: Maximum 60 months Repayment period for used vehicles :Up to 84 months from the date of original purchase of the vehicle (subject to maximum tenure as above).

Documents required you would need to submit the following documents along with the completed application form if you are an existing HDFC BANK account holder: Statement of Bank account of the borrower for last 12 months. 2 passport size photographs of borrower(s). Signature identification from bankers of borrower(s). A copy of passport /voters ID card/PAN card. Proof of residence. Latest salary-slip showing all deductions I.T. Returns/Form 16: 2 years for salaried employees and 3 years for professional/selfemployed/businessmen duly accepted by the ITO wherever applicable to be submitted. 8. Proof of official address for non-salaried individuals. If you are not an account holder with HDFC BANK you would also need to furnish documents that establish your identity and give proof of residence. 1. 2. 3. 4. 5. 6. 7.

Margin New / Used vehicles: 15% of the on the road price.

Prepayment Penalty: Prepayment fee of 2% of the amount of the loan prepaid will be levied subject to certain conditions

FLOATING RATES:

Interest Rates w.e.f. 23.04.2012 (Base Rate 10 % p.a.)

18

HDFC BANK CAR LOAN SCHEME Tenure Rate of Interest For Term Loan: 1.25% above Base Rate, i.e. 11.25% p.a. For all tenures For Overdraft: 1.75% above Base Rate, i.e. 11.75% p.a. NRI Car Loan Tenure For all tenures Rate of Interest 1.25% above Base Rate i.e. 11.25% p.a.

Two- Wheeler Loan Tenure Up to 3 years Rate of Interest 8.25% above Base Rate i.e. 18.25% p.a.

Used Vehicles Tenure Up to 3 years Above 3 yrs Rate of Interest 7.25% above Base Rate i.e. 17.25% p.a. 7.50% above Base Rate i.e. 17.50% p.a.

Certified Pre-owned Car Loan scheme Tenure Up to 3 years Above 3 yrs Rate of Interest 6.00% above Base Rate i.e. 16.00% p.a. 6.50% above Base Rate i.e. 16.50% p.a.

NOTE: ALL INTEREST RATES ARE SUBJECT TO CHANGE, WITHOUT NOTICE

EDUCATION LOAN:
A term loan granted to Indian Nationals for pursuing higher education in India or abroad where admission has been secured.

19

Eligible Courses All courses having employment prospects are eligible.


Graduation courses/ Post graduation courses/ Professional courses Other courses approved by UGC/Government/AICTE etc.

Expenses considered for loan


Fees payable to college/school/hostel Examination/Library/Laboratory fees Purchase of Books/Equipment/Instruments/Uniforms Caution Deposit/Building Fund/Refundable Deposit (maximum 10% tution fees for the entire course) Travel Expenses/Passage money for studies abroad Purchase of computers considered necessary for completion of course Cost of a Two-wheeler upto Rs. 100,000/-

Any other expenses required to complete the course like study tours, project work etc. Amount of Loan

For studies in India, maximum Rs. 10 lacs Studies abroad, maximum Rs. 20 lacs

Processing Fees

No processing fee/ upfront charges Deposit of Rs. 5000/- for education loan for studies abroad which will be adjusted in the margin money

Repayment Tenure Repayment will commence one year after completion of course or 6 months after securing a job, whichever is earlier. Place of Study Loan Amount Repayment in Period Years 5-7 5-7

Studies in India Studies Abroad

Rs. 10.0 lacs Rs. 20.0 lacs

Security Amount For loans upto Rs. 10.00 lacs for Studies in India and upto Rs. 20.00 lacs for studies abroad

20

Upto Rs. 4 lacs Above Rs. 4 lacs to Rs. 7.50 lacs

No Security Collateral security in the form of suitable third party Guarantee. The bank may, at its discretion, in exceptional cases, weive third party guarantee if satisfied with the net-worth/means of parent/s who would be executing the documents as "joint borrower" Tangible collateral security of suitable value, along with the assignment of future income of the student For payment of installments.

Above Rs. 7.50 lacs.

All loans should be secured by parent(s)/guardian of the student borrower. In case of married person, co-obligator can be either spouse or the parent(s)/ parents-in-law Margin

For loans up to Rs.4.0 lacs : No Margin For loans above Rs.4.0 lacs: o Studies in India: 5% o Studies Abroad: 15%

Documentation Required

Completed Education Loan Application Form. Mark sheets of last qualifying examination Proof of admission scholarship, studentship etc Schedule of expenses for the specified course 2 passport size photographs Borrower's Bank account statement for the last six months Income tax assessment order, of last 2 years Brief statement of assets and liabilities, of the Co-borrower Proof of Income (i.e. Salary slips/ Form 16 etc)

Interest Rates Applicable:


Base Rate 10% w.e.f. 13.08.2011 EDUCATION LOAN HDFC BANK Student Loan Scheme Loan Amount Rate of Interest (w.e.f. 27.02.2012) 350 bps above Base Rate,

For loans upto Rs.4 lacs

21

currently 13.50% p.a. Above Rs.4 lacs and upto Rs.7.50 lacs Above Rs.7.50 lacs 325 bps above Base Rate, currently 13.25% p.a. 200 bps above Base Rate, currently 12.00% p.a.

0.50% concession in interest for girl student 1% concession for full tenure of the loan, if interest is serviced promptly as and when applied during the moratorium period (including course duration)

HDFC BANK Scholar Loan Scheme (w.e.f. 27.02.2012) 200 bps above Base Rate, currently 12.00% p.a. (Irrespective of the loan amount)

0.50% concession in interest for girl student 1% concession for full tenure of the loan, if interest is serviced promptly as and when applied during the moratorium period (including course duration)

NOTE: ALL INTEREST RATES ARE SUBJECT TO CHANGE, WITHOUT NOTICE.

HDFC Bank PERSONAL LOAN:


Purpose The loan will be granted for any legitimate purpose whatsoever (e.g. expenses for domestic or foreign travel, medical treatment of self or a family member, meeting any financial liability, such as marriage of son/daughter, defraying educational expenses of wards, meeting margins for purchase of assets etc.) Eligibility You are eligible if you are a Salaried individual of good quality corporate, self employed engineer, doctor, architect, chartered accountant, MBA with minimum 2 years standing. Salient Features Loan Amount Your personal loan limit would be determined by your income and repayment capacity. Minimum: Rs.24,000/- in metro and urban centres Rs.10, 000/- in rural/semi-urban centres

22

Maximum: 12 times Net Monthly Income for salaried individuals and pensioners subject to a ceiling of Rs.10 lacs in all centres Documents Required Important documents to be furnished while opening a Personal Loan Account: For existing bank customers Passport size photograph From salaried individuals Latest salary slip and Form 16 Margin We do not insist on any margin amount. Interest Rates

PERSONAL LOAN AGAINST THIRD PARTY SECURITY

Base Rate 10.00 % w.e.f. 13.08.2011


Loans against NSCs/KVPs/RBI Relief Bonds/ Surrender Value of HDFC BANK Life /LIC/HDFC BANK Magnums, etc. Tenure Upto 3 years More than 3 years and below 6 years Rate of Interest 4.50% above Base Rate, currently 14.50% p.a. 4.50% above Base Rate, currently 14.50% p.a.

Repayment The loan is repayable in 48 EMI. You are allowed to pay more than the EMI if you wish to, without attracting any prepayment penalty. Security NIL Processing Fee Processing charges are 1-2% of the loan amount. This is amongst the lowest fees in the industry. Processing fees have to be paid upfront. There are no hidden costs or other administrative charges.

LOAN Against Property, Gold ornaments:


Purpose This is an all purpose loan, i.e., the loan can be obtained for any purpose whatsoever. If amount of loan

23

is Rs.25.00 lacs and above then purpose of loan will have to be specified along with an undertaking that loan will not be used for any speculative purpose whatever including speculation on real estate and equity shares.

Eligibility You are eligible if you are: A. An individual who is; a. An Employee or b. A Professional, self-employed or an income tax assesse or c. Engaged in agricultural and allied activities. B. Your Net Monthly Income (salaried) is in excess of Rs.12,000/- or Net Annual Income (others) is in excess of Rs.1,50,000/-. The income of the spouse may be added if he/she is a co-borrower or a guarantor. C. Maximum age limit: 60 years. Salient Features Loan Amount Minimum: Rs.25, 000/Maximum: Rs.1 crore. The amount is decided by the following calculation:

24 times the net monthly income of salaried persons (Net of all deductions including TDS) OR 2 times the net annual income of others (income as per latest IT return less taxes payable)

Margin We will finance upto 75% of the market value of your property.

Repayment Maximum of 60 equated monthly installments, upto 120 months for salaried individuals with check-off facility. You could opt to divert any surplus funds towards prepayment of the loan without attracting any penalty. Security As per banks extant instructions.

Interest Rates: LOANS AGAINST GOLD ORNAMENTS, MORTGAGE OF PROPERTY

Base Rate 10.00 % w.e.f. 13.08.2011


Loan against Gold Ornaments

24

Size of Credit Limit Upto Rs. 1,00,000/-

Rate of Interest 4.25% above Base Rate Floating, currently 14.25% p.a. 4.75% above Base Rate Floating, currently 14.75% p.a.

Above Rs. 1,00,000/-

Loan against Mortgage of Immovable Property


Size of Credit Limit (Term Loan) Upto Rs. 1,00,00,000/Rate of Interest 5.25% above Base Rate Floating, currently 15.25% p.a.

Above Rs. 1,00,00,000/- 5.50% above Base Rate Floating, currently 15.50% p.a. *No Overdraft against Mortgage of Property

NOTE: ALL INTEREST RATES ARE SUBJECT TO CHANGE, WITHOUT NOTICE.

LOAN AGAINST SHARES \ DEBENTURES:


Eligibility This facility is available to our existing individual customers enjoying a strong relationship with HDFC BANK. This loan could be availed either singly or as a joint account with spouse in 'Either or Survivor'/ 'Former or Survivor' mode. It is offered as an Overdraft or Demand Loan. The facility is available at 50 select centers. Salient Features: Purpose For meeting contingencies and needs of personal nature. Loan will be permitted for subscribing to rights or new issue of shares / debentures against the security of existing shares / debentures. Loan will not be sanctioned for (i) speculative purposes (ii) inter-corporate investments or (iii) acquiring controlling interest in company / companies. Loan Amount You can avail of loans up to Rs 20.00 lacs against your shares/debentures. Documents Required You will be required to submit a declaration indicating: Details of loans availed from other banks/ branches for acquiring shares/ debentures. Details of loans availed from other banks/ branches against security of shares/ debentures Margin

25

You will need to provide a margin amount of 50% of the prevailing market prices of the shares/ nonconvertible debentures being offered as security. (The market prices refer to the prices in the Stock Exchanges as reported in the Economic Times.) Repayment Schedule To be liquidated in maximum period of 30 months through a suitable reducing DP programme. In case of a default or if the outstanding is over Rs.20.00 lacs, the shares/debentures will be transferred in the name of the Bank. Security: Pledge of the demat shares/debentures against which overdraft is granted.

Interest Rates: LOANS AGAINST SHARES / DEBENTURES / BONDS

Base Rate 10.00 % w.e.f. 13.08.2011


Loans against Shares / Debentures / Bonds Sceme Equity Plus Scheme Rate of Interest 6.50% above Base Rate, currently 16.50% p.a.

Conclusion
HDFC BANK is in 1st position having large number of customers & providing good services to them. The bank has a wide customer base, so the bank should concentrate on this to retain these customers. In present scenario HDFC BANK is the largest credit product issuer in India. Within a very short period of time the achievement made by HDFC BANK is excellent, what a normal bank cannot expect, but it is being done by HDFC BANK. It happens due to employee dedication towards the organization, fastest growing Indian economy, & brand image. To be the largest credit & advance product issuer, HDFC BANK should focus on

Launch Innovative product Customized advance products Better customer services Fastest customers problem solving techniques Customer retention

Apart from all the above, HDFC BANK believe in providing good customer services to their customers which is a key factor for success in future.

26

Bibliography and References


https://www.hdfcbank.com/user.htm http://en.wikipedia.org/wiki/HDFC_Bank http://www.iba.org.in/viewmembanks.asp?id=2 http://economictimes.indiatimes.com/Banking/articleshow/64 34466.cms http://indiatoday.intoday.in/ http://www.forbes.com/2009/05/06/world-reputablecompanies-leadership-reputation-table.html http://business.rediff.com/slide-show/2010/oct/26/slide-show1-tata-motors-is-indias-top-brand.htm http://en.wikipedia.org/wiki/Big_Four_(banks) http://www.cmlinks.com/sbi/NewsText.asp?Code=1375&peri od=1001&srno=9172002038 http://en.wikipedia.org/wiki/List_of_companies_of_India http://en.wikipedia.org/wiki/List_of_banks_in_India http://en.wikipedia.org/wiki/Fortune_India_500 http://en.wikipedia.org/wiki/Fortune_Global_500

27