A Project Report On

“Customers Perception Towards The

Products and Services Offered by HDFC
Bank And Comparative Analysis”

By
Priyanandini T
(Amity Business School
 A REPORT ON

“Customers Perception Towards The Products and

Services Offered by HDFC Bank And Comparative
Analysis”

BY

Priyanandini Sarkar
MBA(G)
(A0101907346)
Amity Business School

Under the guidance of

Mr. D. Gopala Krishna (Branch Manager, HDFC Bank, Visakhapatnam )

&
Prof. Balram Tyagi (Amity Business School)

During the Academic Year (2007-2009)

 A REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE
REQUIREMENT OF MBA PROGRAMME OF AMITY BUSINESS SCHOOL

ACKNOWLEDGEMENT

It is our duty to acknowledge with gratitude the generous help that I have received fro
Mr. D. Gopala Krishna Branch manager, HDFC BANK LTD.(Ground Floor,Eswar
Enclave,11-7-8,Hotel Green Park,Visakhapatnam-530002).We have had the advantages of his
critical advice from his profound knowledge in Marketing (sales). He has indeed taken personal
interest in preparing an innovative Report on “Customers Perception Towards The Products
and Srvices Offered by HDFC Bank And Comparative Analysis”He has helped us a lot in
preparing the questionnaire.

I also want to thank Mr E.Dheeraj who is the Relationship Manager-Corporate Salary of this
branch, my company guide,for his enduring patience, valuable guidance and constant
encouragement during the course of project work.
Special thanks to Deputy Manager Mr Aswin Nayak He helped me in every step when I
required.
My sincere thanks are due to all the officers of HDFC Bank for their worthy help and
cooperation.
Finally, it’s my pleasure to acknowledge the kind help and cooperation of all the respondents of
Visakhapatnam with whom I met throughout the duration of this project.
Head Of The Organization - Mr. . Gopala Krishna Branch manager, HDFC BANK
LTD..Ground Floor,Eswar Enclave,11-7-8,Hotel Green Park,Visakhapatnam-530002.
Company Guide - Mr E.Dheeraj-Relationship Manager-Corporate Salary

Faculty Guide - Prof.Balram Tyagi

Priyanandini Sarkar
 DECLARATION

I hereby declare that this project report entitled as “CUSTOMER’S PERCEPTION TOWARDS
THE PRODUCTS AND SERVICES OFFERED BY HDFC BANK & COMPARATIVE
ANALYSIS”, submitted to, Amity Business School, AU in partial fulfillment of the requirement
of MBA is a bonafide work done by me and it was not submitted to any other university or
institution previously.

PRIYANANDINI SARKAR
 EXECUTIVE SUMMARY

The bases of the project was to understand the customers perception about the various schemes
like Personal loans, Home loans, Car loans under asset products and saving bank account, Current
account and Salary account under liability products for retail banking.

The project also encompasses, identifies the scope and various parameters, a customer would
look into while transacting with bank for certain scheme.

Overall analysis has been done, keeping in mind the various customer segments like
businessmen, salaried people, students and others, consideration while opting for any deposits or
borrowings.

The SWOT analysis shows the pitfalls and identifies the opportunities available for HDFC Bank
and competitor analysis has been done by considering four other close competing commercial
banks like ICICI, SBI, UTI, IDBI banks at visakhapatnam , analysis has been done by taking the
profitability and performance indicator, it says there are several potentials available for HDFC
bank to be the market favorite. After the analysis it is found that the major part of the deposits
from HDFC Bank , visakhapatnam is formed by businessmen followed by salaried people and
professionals and its nearest competitors are ICICI Bank & SBI.
 CONTENTS

SI.NO DESCRIPTION PAGE NO

1 Introduction to HDFC Bank 1

2 Products & Services

‫ פּ‬Personal Banking 11
‫ פּ‬NRI Banking 34
‫ פּ‬Wholesale Banking 35

3 Market Research

‫פּ‬ Problem Definition & Objectives 40

‫פּ‬ Research Methodology 40
‫פּ‬ Data Analysis & Observation 43
‫פּ‬ Recommendations & Limitations 56

4 SWOT Analysis 58

5 A Comparative Study Among the Emerging 61

Commercial Banks

6 Conclusion 63

7 Bibliography 65

8 Annexure

‫ פּ‬Questionnaire 67
‫ פּ‬Excel Sheets
Introduction to HDFC Bank…..
I
HDFC BANK
HDFC Bank was amongst the first to receive an 'in-principle' approval from the Reserve Bank of
India (RBI) to set up a bank in the private sector from Housing Development Finance
Corporation Limited (HDFC), in 1994 during the period of liberalization of the banking sector
in India. HDFC India was incorporated in August 1994 in the name of 'HDFC Bank Limited'.
HDFC Bank , one amongst the firsts of the new generation, tech-savvy commercial banks of
India, was set up in august 1994 after the Reserve Bank of India allowed setting up of Banks in
the private sector
.
The Bank was promoted by the Housing Development Finance Corporation Limited, a
premier housing finance company (set up in 1977) of India. Net Profit for the year ended
March 31, 2007 was up Rs.1,141.5 crores, up 31.1%. Headquartered in Mumbai,

HDFC Bank, has a network of over 684 branches spread over 316 cities across India. All
branches are linked on an online real-time basis. Customers in over 120 locations are serviced
through Telephone Banking. The Bank also has a network of about over 1605 networked ATMs
across these cities.

History of the company

1994
- The Bank was Incorporated on 30th August. A new private sector Bank promoted by housing
Development Corporation Ltd. (HDFC), a premier housing finance company. The bank is the first
of its kind to receive an in-principle approval from the RBI for establishment of a bank in the
private sector. Certificate of Commencement of Business was received on 10th October 1994
from RBI.

- The Bank transacts both traditional commercial banking as well as investment banking. HDFC,
the promoter of the bank has entered into an agreement with National Westminister Bank Pc. and
its subsidiaries (Natwest Group) for subscribing 20% of the banks issued capital and providing
technical assistance in relation to the banks proposed banking business.
1995
- 70 No. of equity shares issued to subscribers to the Memorandum & Articles of Association on
30th August 1994. On the same date 500,00,000 equity shares were allotted to HDFC promoters.
509,20,000 shares were allotted to HDFC Employees Welfare Trust and HDFC Bank Employees
Welfare Trust on 22nd December, 1994.
- On 16.1.1995, 90,79,930 No. of equity shares were allotted to Jarrington Pte. Ltd. Another
400,00,000 equity shares were allotted on private placement basis to Natwest Group on 9.5.1995.
500,00,000 shares were allotted to the public on 9.5.95 (all were taken up).
- The Bank opened its first branch in Ramon House at Churchgate, Mumbai on January 16th.
- The Bank has created an efficient operating system using well tested state-of-the-art software.
1996
- HDFC Bank has entered the banking consortia of over 50 corporates, including some leading
multinational companies, flagship companies of local business houses and strong public sector
companies.
- HDFC Bank has set up a state-of-the-art dealing room to handle all transactions possible in
Indian financial markets.
- The Certificates of Deposits were awarded a PP1+ rating which is the highest rating for short
term instruments indicating superior capacity for repayment.
1997
- The bank is one of the largest mobilisers of retail deposits through its network of 20 branches. Its
credit deposits ratio was 53.8%.
- The bank has set up a ultra-modern hub at Powai in Mumbai where the bank's central computer
is housed. This hub housed in 35,000 square feet of space, houses data of all the branches and
facilitates the introduction of new products and services.
- HDFC has installed state-of-the-art systems to facilitate inter-connectivity between branches and
link up with on line system.
- The bank has also recently signed up as a depository participant, under the newly set up NSDL,
wherein the members clearing accounts settlement for dematerialized shares can be done through
the bank.
- HDFC Bank, one of the nine new-generation private sector banks, has planned to set up an all-
India on-line automated teller machine (ATM) network.
- HDFC Bank proposed to launch tele-banking for the first time in June in Mumbai at its
Chandiveli branch.
- HDFC Bank has drawn up plans to become a niche player in corporate banking by sticking to
top-rung corporates.
- HDFC Bank has become the first private sector bank to conclude a structured interest rate option
deal.
- HDFC Bank has launched its Versova branch, the 11th branch in Mumbai.
- HDFC Bank, as part of its expansion plans in the South, has opened another branch in Chennai.
- HDFC Bank has entered into strategic alliances with 10 overseas banks to provide customers
with a wide range of derivatives including interest rate and foreign currency swaps.
- HDFC Bank on October 14 introduced ATMs that converse in a regional language.
- HDFC Bank has introduced the Freedom Account for the average retail customer located in the
major metros as a means to wean away the middle-income market from nationalised banks.
- HDFC Bank has launched an account in all its 28 branches across India that seeks to free
depositors from minimum balance requirement, for the first time in the country.
- HDFC has introduced a new loan product for the payment of betterment fees announced by the
Bangalore Mahanagar Palike. - HDFC Bank is all set to launch its debit card by April 1998.

1998
- HDFC Bank has tied up with the Ahmedabad Stock Exchange (ASE) to act as its clearing bank.
- HDFC Bank proposes to strengthen its branch network in Calcutta with the addition of two new
branches in the first quarter of the next fiscal.
- HDFC Bank has signed an agreement with the National Stock Exchange (NSE) which will give
it a second charge over the brokers deposit for providing loan against share facility to NSE
brokers.
- The bank has also entered into a similar understanding with the Bombay Stock Exchange (BSE)
whereby the bourse will provide support for recovery of money against the card for loan against
share facility.
- The bank has also entered into `Cirrus' arrangements by which all master card holders across the
globe will be able to transact at HDFC Bank in India.
- The bank will also provide phone-banking facility in Bangalore. HDFC has tied up with Visa
International to offer its Debit Card. - HDFC Bank Ltd has entered into a memorandum of
understanding for a strategic business collaboration with Chase Manhattan Bank.
- HDFC Bank has become the first bank in India to link up its automated teller machine (ATM)
network with all the three major payment systems world-wide.
- HDFC Bank will be the first bank in the Asia-Pacific region to connect the American Express
(Amex) payment system.
- The HDFC Bank is expanding its ATM network to connect to American Express Interchange
based in Phoenix, Arizona, USA. With this connectivity, HDFC Bank has become the first bank in
the Asia-pacific region to connect to the Amex Interchange.
- HDFC Bank was the first to sign up with AMEX in December of 1998.
- The Bank has tied up with ITC Threadneedle Mutual Fund to provide its investors with the High
Interest Fund (HIF), a facility to encash their units through the bank's Automated Teller Machines
in addition to a cheque book facility also to be provided by the bank.
- Sony India Ltd (SIL) has joined hands with HDFC Bank to work out an innovative car finance
package under which a sony car audio system would be installed to a new car for no additional
upfront cash outflow.
- The bank has decided to issue 1,33,10,000 equity shares of Rs. 10 each to HDFC and a wholly-
owned subsidiary of it at a price of Rs. 94 per share.
- The bank will also issue 13,70,000 equity shares to India Private Equity Fund and 51,20,000
shares to Indocean Financial Holding, the two equity funds controlled by Chase Manhattan Bank.
- HDFC Bank, has tied up with BPL Ltd to offer Internet-enabled supply-chain management and
business-to-consumer (B2C) e-commerce services to corporates.
- Hutchison Max Telecom and HDFC Bank introduced the country's first-ever mobile-banking
services in the city.
2000
- HDFC Bank also signed a memorandum of understanding with Singapore Telecom's e-
commerce arm Sesami.Com Pvt Ltd. - The Bank latter also entered into a partnership agreement
with National Computer Systems, the e-commerce unit of Singtel.
- A new company called SESAMi.com (India) has been formed by a strategic alliance between
HDFC Bank and Singapore Telecom's e-commerce company SESAMi.com, to offer e-commerce
solutions for the Indian market.
- HDFC Bank has a tie-up with Maxtouch for giving the facility to the latter's customers in
Mumbai. This is the first and only service of this sort in the country, he said.
- HDFC Bank is also launching an online electronic banking solution called Enet which will allow
corporates to access their accounts over the net and carry out trade related transactions and cash
management functions.
- HDFC Bank entered into a tie-up with Telco by which the bank would provide preferential
financing options for Tata's range of passenger cars including the Indica, Sumo, Safari, Estate and
Sierra.
- HDFC Bank allotted 1.98 crore shares of Rs 10 each at an issue price of Rs 94 per share to
promoters and strategic investors on March 29.
- HDFC Bank is also set to become the first bank in the country to offer wireless application
protocol (WAP) services to customers.
- SkyCell Communications Ltd, one of the two cellular service providers in Chennai, has launched
`Sky Banking', for which the company has tied up with ICICI Bank and HDFC Bank.
- The bank has tied up with 12 utility companies nationwide including BSES, MSEB, BEST,
Orange, BPL and MTNL.
- The Bank has tied up with financial portals, e-brokerages and the National Stock Exchange to
enable broker payments for e-broking ventures. - The Bank has set up 100 new electronic data
capture (EDC) terminals in Mumbai. - HDFC Bank has launched its first B2C payment gateway
which allows Visa and MasterCard credit card-holders to do transaction online and realtime. -
CYBERITMALL.COM has joined hands with HDFC Bank to provide VISA/MasterCard users
with an online payment gateway solution to enable them to have a secure eshopping experience. -
HDFC Bank plans to extend its mobilephone banking services introduced in select metros to
mobilephone broking when it introduces its Internet on-line trading in July. - HDFC Bank and
portal clickforsteel.com have signed a memorandum of understanding for offering online credit
and services to facilitate `post transaction' activities through the portal's `allied services providers'
programme. - Indianfoline.com signed an agreement with HDFC bank for the use of payment
gateway to enable online financial transactions.
- HDFC Bank, in association with cellular service provider Orange, has launched the entire range
of mobile banking services and mobile commerce services using wireless application protocol
(WAP) technology.
- The Company has introduced a new scheme whereby it will provide loans to individuals for
payment of self assessment tax on their properties in Bangalore.
- The Foreign Investment Promotion Board has cleared the proposal of the HDFC Group to enter
into a joint venture with Singapore Telecom's e-commerce company for providing a
comprehensive range of business-to-business e-commerce solutions to companies in India.
- The Company proposes to pick up an equity stake in Softcell Trade and Technologies Ltd., a
Mumbai-based software company.
- BPL Mobile has tied up with HDFC Bank to offer Internet banking through the mobile phone.
- HDFC Bank launched `Instant Car Loans' a new scheme for offering customers a range of net-
enabled loan products.
- HDFC Bank launched depository services on the net.
- HDFC Bank tied up with NSE.IT, a wholly owned subsidiary of the National Stock Exchange,
for providing payment gateway services for the latter's Internet trading operations.
- HDFC Bank has been identified as the best domestic commercial bank for the second
consecutive year by FinanceAsia.com, which provides a network for financial decision makers.

- The Mumbai-based Geojit Securities Ltd. has tied up with HDFC Bank for Internet trading of
shares.
- Calcutta's cellular services provider Modi Telstra, and HDFC Bank have entered into a
collaboration to provide mobile commerce in Calcutta.
- HDFC Bank has got the Kerala-based Nedungadi Bank as its first customer for its new joint
venture company with I-Flex Solutions.
- HDFC Bank has set a target of attaining a business of over Rs 15,000 crore this fiscal mainly
through expansion and new product launches, including a credit card.
- HDFC Bank, in association with Tata Cellular, has launched Mobile Commerce Service, for
customers in Hyderabad and Vishakaptnam.
- HDFC Bank has tied up with about 25 equity brokerages for enabling third party transfer of
funds and securities through its business-to-business portal -- `e-Net'.
- The Bank has entered into an alliance with Deloitte Haskins and Sells, a member firm of Deloitte
and Touch, to offer banking services to its non-resident Indian customers.
- HDFC Bank has launched its 123rd outlet at Delhi Stock Exchange building at Asaf Ali Road.
- The Bank proposes to acquire up to 24.5 per cent stake in the MIEL e-Security Pvt. Ltd., which
is engaged in the business of developing and marketing of security products and services for a
range of e-commerce and enterprises security applications.
- The Bank has tied up with Rajan Raheja-owned Hathway for providing banking at home as part
of the Net-over-cable initiative of the latter in Mumbai. - HDFC Bank launched its on-line bill
payment facility in alliance with the Maharashtra State Electricity Board has also begun to offer
bridge loans against fixed deposits of parent Housing Development Finance Corporation the
financial institution.
- HDFC Bank has tied up with portal brainvisa.com to retail education loans to students. - The
Gujarat Cellular operator Fascel, has signed up with the HDFC Bank to introduce mobile
commerce for the first time in the State.
- HDFC Bank has tied up with BPL Mobile for mobile commerce facility.
- CricketNext.com, a sports e-commerce site has tied up with HDFC Bank to provide an on-line
payment gateways and marketing opportunities for a wide range of cricket sports gear on its on-
line shop BatNext.
- Singapore-based Growasia.com has entered into an understanding with HDFC Bank and credit
rating agency Icra, for picking up equity in the company's Indian subsidiary Gasia.com.
- The Bank has launched `Freedom - The e-Age Savings Account' for cellular phone users.
- Spice Cell has tied up with Citibank N A, HDFC Bank and ICICI Bank for mobile bill
settlements.
- HDFC Bank and Cosmos Bank launched a co-branded ATM card.
- The Chatterjee Group-promoted Captech Online Ltd. has signed memorandum of understanding
with HDFC Bank and UTI Bank for setting up a payment gateway for its debt negotiation
platform, Riskxpress.com.
- HDFC Securities Ltd., promoted by the HDFC group with equity participation from the Housing
Development Finance Corporation Ltd., HDFC Bank and Chase Capital Partners, has launched its
brokerage services for retail investors in the Capital.
- The HDFC Bank and Airtel launched their mobile-banking service through WAP in Delhi.
- HDFC Bank has launched wireless application protocol-based mobile-banking in Coimbatore
and Trichy in association with Aircel.
2001
- The Bank has opened its first branch in Aurangabad.
- HDFC Standard Life Insurance has entered into a memorandum of understanding with the
Chennai-based Indian Bank.
- The Bank has launched the international Maestro debit card in association with Master Card.
- HDFC Bank will launch its credit card in June through link-ups with MasterCard and Visa.
- LTtrade.com has entered into a strategic tie-up with HDFC Bank to provide Net banking
services to online investors.
- Standard Chartered Bank, HDFC Bank and Bharat Petroleum Corporation have joined the eCash
Forum which has been set up by the Smart Card Forum of India.
- HDFC Bank has launched a new campaign for its eage savings account.
- HDFC Bank entered into a strategic tie-up with Tally Solutions Pvt. Ltd. to offer online real time
accounting services to small and medium enterprises.
- The Bank has opened four ATMs outlets in Bangalore at Coles Road, RT Nagar, Rajaji Nagar
and Jaya Nagar on March 26.
- HDFC Standard Life Insurance has launched a `Development Insurance Plan' a low cost life
insurance product developed specifically to meet the needs of economically weaker sections.
- Two Directors, Mr. S.S. Thakur and Mr. Amit Judge, have resigned from the board of the bank
effective from March 30.
- HDFC Bank files with US regulators to list more than 11 million American Depositary Shares
on the New York Stock Exchange.
2002
- HDFC Bank unveiled a new online account aggregation service `OneView'.
- HDFC launched 'One View' service to customers
- HDFC Bank launched its 9th branch in Karnataka.
- HDFC opens its branch in Mangalore.
- HDFC Bank unveils Silver card in Hyderabad.
- HDFC Bank opens first overseas representative office.
- HDFC Bank unveils gold card
- Mediclaim facilities to HDFC Bank gold cardholders.
- HDFC Bank Ltd has informed BSE that Mr Deepak Satwalekar has submitted his resignation as
Director of the Bank. The Board of Directors has accepted the same. The Board of Directors has
co-opted Mrs Renu Karnad as Additional Director of the Bank.
- Mrs. Renu Karnad has been co-opted as an Additional Director of the Bank. Mrs Karnad shall
represent the promoters of the bank i.e. HDFC Ltd. Also Mr. Deepak Satwalekar, Managing
Director of HDFC Standard Life Insurance Company Ltd, has been on the Board of the Bank as
nominee of HDFC Ltd since September 12, 1994 and shall complete the period of 8 yrs before the
next scheduled board meeting. In view of the provisions of the Banking Regulation Act, 1949, Mr.
Satwalekar has submitted his resignation as Director of the Bank and the Board has accepted the
same.
- HDFC Bank launched new products to its wealth management programme to increase its
customer base. The bank introduced a non-interactive product named "Financial Planner", which
would be available for all its customers for an annual fee starting from Rs 10,000. The bank is
offering fee based advisory programme to the "mass affluent" segment, which was earlier offered
to high net worth customers. The wealth management programme would cater to individual needs
taking into account various factors such as customer's age, financial goals and risk profile, which
includes equity, MFs and debt instruments such as RBI Relief Bonds.
- Orange JV with HDFC Bank.
2003
- HDFC Bank unveils resident foreign currency account.
- HDFC Bank unveils co-branded credit card with e-Seva.
- The Board of Directors of HDFC Bank Ltd at their meeting held on January 15, 2003 approved
the appointment of Mr. Arvind Pande as an Additional Director pursuant to section 260 of the
Companies Act, 1956.
- EPFO JV with HDFC Bank for its pension distribution.
- HDFC enters into agreement with HDFC Bank to source housing loans.
- HDFC Bank, IRCTC in tie up for online railway booking.
- HDFC Bank inks pact with ANB for remittance service
- HDFC Bank introduces 'HDFC Bank Health Plus Credit Card'.
- Uma Krishnan resigns HDFC Bank as country head.
- Escotel ties up with HDFC Bank for Global Debit Card.
- HDFC Bank launches India's first mobile payment solution.
- HDFC Bank's debt programme of Rs 400-crore has received triple A (ind) rating from CREDIT
rating agency FITCH.
-Mumbai - HDFC Bank in collaboration with Tally Solutions is planning to launch electronic data
interchange (EDI) system for small and medium enterprises (SMEs).
-Warburg Pincus sells 2% stake in HDFC for Rs 235 cr
- HDFC Bank began selling home loans of its promoter Housing Development Finance
Corporation (HDFC).
-Board approved to allot 4,16,400 equity shares to the employees of the Bank under the Employee
Stock Option Scheme
2004
-Mr Ranjan Kapur & Mr Bobby Parikh appointed as Additional Directors
-NMCE inks pact with HDFC Bank for warehouse receipts
- HDFC Bank has entered into an alliance with Clearing Corporation of India Ltd (CCIL). The tie-
up offers the latter's collateral borrowing and lending obligation (CBLO) product to cooperative
banks that are not direct members of the negotiated dealing system (NDS).
-HDFC Bank repurchases HDFC loans worth Rs 208 cr
-Launches Quickremit, a unique online service that enables NRIs in the US to send money to their
relatives in India from the comfort of their homes.
-Andhra Bank has entered into an alliance with HDFC Bank for sharing its network of automated
teller machines (ATMs). On March 29, 2004
- HDFC Bank and Bahraini Saudi Bank (BSB) have announced an alliance to cater to service the
needs of the non-resident Indians (NRIs) in Bahrain.
- HDFC bank Ltd has informed that Dr (Mrs) Amla Samanta has ceased to be a director of the
Bank with effect to April 25, 2004.

- HDFC Bank launches new scheme for Maruti 800 buyers, providing 85 per cent finance on the
on-road price of the car for seven years.
-HDFC Bank wins Asiamoney award for Best Domestic Bank
-HDFC Bank managing director Aditya Puri has been awarded the management man of the year
by the Bombay Management Association (BMA)
-HDFC Bank has entered into an agreement with Shrachi Securities Ltd, the flagship company of
the Kolkata-based Rs 300-crore Shrachi Group, for financing of multi-utility vehicles all over
India
-HDFC Bank has launched an online bill payment facility for its customers who are also
subscribers to Tata Teleservices
-HDFC Bank join hands with NCR Corporation to offer managed ATM services
- IKF Finance Ltd has entered in to a Joint Lending Arrangement with HDFC Bank Ltd
2005
-TMB forges alliance with HDFC Bank
-HDFC Bank inaugurates first ATM in Hotel
- HDFC Bank ties up with the International Bank of Qatar (IBQ) to launch banking services in
Qatar.
- HDFC Bank launches loyalty rewards programme for its debit and credit cardholders under the
name InstaWonderz.
-HDFC Bank along with MasterCard International launched credit card targeted at small and
medium-sized enterprises
-HDFC Bank has tied up with US-based WL Ross and company LLC for investing in corporate
restructuring
-HDFC Bank unveils credit card for farmers
2006
 -HDFC sets up two more branches in AP
2007
-HDFC Bank has signed an agreement with Tata Pipes to offer credit facilities to farmers across
the country.
-Hdfc Bank Ltd has appointed Mr. Pandit Palande as an additional Director of the Bank at the
Board Meeting held today i.e. on 24th April 2007.
- HDFC Bank Ltd has informed that the Board of Directors of the Bank at its meeting held on
October 12, 2007, has been appointed Mr. Paresh Sukthankar & Mr. Harish Engineer as Executive
Directors on the Board of Directors of the bank. Mr. Sukthankar & Mr. Engineer have been senior
employees of the Bank since 1994 and have held various positions of responsibility

Organizational Structure

Chairperson
(Jagdish Capoor)

Managing
Director
(Aditya
Puri)

Executive director Executive director

(Harish Engineer ) (Paresh Sukthankar)

Director Director Director Director Director Director

(Keki (C.M (Pandit (Vineet (Arvind (Gautam
Mistry) Vasudev) Palande) Jain) Pande) Divan)
PROMOTER
HDFC is India's premier housing finance company and enjoys an impeccable track record in India
as well as in international markets. Since its inception in 1977, the Corporation has maintained a
consistent and healthy growth in its operations to remain the market leader in mortgages. Its
outstanding loan portfolio covers well over a million dwelling units. HDFC has developed

significant expertise in retail mortgage loans to different market segments and also has a large
corporate client base for its housing related credit facilities. With its experience in the financial
markets, a strong market reputation, large shareholder base and unique consumer franchise,
HDFC was ideally positioned to promote a bank in the Indian environment.

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

TIMES BANK AMALGAMATION

In a milestone transaction in the Indian banking industry, Times Bank Limited (another new
private sector bank promoted by Bennett, Coleman & Co./Times Group) was merged with HDFC
Bank Ltd., effective February 26, 2000. As per the scheme of amalgamation approved by the
shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank received 1
share of HDFC Bank for every 5.75 shares of Times Bank. The acquisition added significant
value to HDFC Bank in terms of increased branch network, expanded geographic reach, enhanced
customer base, skilled manpower and the opportunity to cross-sell and leverage alternative
delivery channels.

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

The Bank has made substantial efforts and investments in acquiring the best technology available
internationally, to build the infrastructure for a world class bank. In terms of software, the
Corporate Banking business is supported by Flexcube, while the Retail Banking business by
Finware, both from i-flex Solutions Ltd. The systems are open, scaleable and web-enabled.

The Bank has prioritised its engagement in technology and the internet as one of its key goals and
has already made significant progress in web-enabling its core businesses. In each of its
businesses, the Bank has succeeded in leveraging its market position, expertise and technology to
create a competitive advantage and build market share.

DISTRIBUTION NETWORK
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over
593 branches spread over 263 cities across India. All branches are linked on an online real-time
basis. Customers in over 120 locations are also serviced through Telephone Banking. The Bank's
expansion plans take into account the need to have a presence in all major industrial and
commercial centres where its corporate customers are located as well as the need to build a strong
retail customer base for both deposits and loan products. Being a clearing/settlement bank to
various leading stock exchanges, the Bank has branches in the centres where the NSE/BSE have a
strong and active member base.
The Bank also has a network of about over 1131 networked ATMs across these cities. Moreover,
HDFC Bank's ATM network can be accessed by all domestic and international Visa/MasterCard,
Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.

BUSINESSES

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

Wholesale Banking Services

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

The objective of the Retail Bank is to provide its target market customers a full range of financial
products and banking services, giving the customer a one-stop window for all his/her banking
requirements. The products are backed by world-class service and delivered to the customers
through the growing branch network, as well as through alternative delivery channels like ATMs,
Phone Banking, NetBanking and Mobile Banking.
The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and the
Investment Advisory Services programs have been designed keeping in mind needs of customers
who seek distinct financial solutions, information and advice on various investment avenues. The
Bank also has a wide array of retail loan products including Auto Loans, Loans against marketable
securities, Personal Loans and Loans for Two-wheelers. It is also a leading provider of Depository
Participant (DP) services for retail customers, providing customers the facility to hold their
investments in electronic form.

HDFC Bank was the first bank in India to launch an International Debit Card in association with
VISA (VISA Electron) and issues the Mastercard Maestro debit card as well. The Bank launched
its credit card business in late 2001. By September 30, 2005, the bank had a total card base (debit
and credit cards) of 5.2 million cards. The Bank is also one of the leading players in the "merchant
acquiring" business with over 50,000 Point-of-sale (POS) terminals for debit / credit cards
acceptance at merchant establish.

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

AWARDS and ACHIEVEMENTS- BANKING SERVICES

HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian
Bank". We realized 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.
The Asset magazine named HDFC Bank "Best Cash Management Bank" and "Best Trade
Finance Bank" in India, in 2006.HDFC Bank named the "Most Customer Responsive
Company - Banking and Financial Services in The Economic Times - Avaya Global Connect
Customer Responsiveness Awards 2005". HDFC Bank has been named Best Domestic Bank in
India in The Asset Triple A Country Awards 2005. In 2004, HDFC Bank was selected by
BusinessWorld as "One of India's Most Respected Companies" as part of The Business
World Most Respected Company Awards 2004. In 2004, HDFC Bank won the award for
"Operational Excellence in Retail Financial Services" - India as part of the Asian Banker
Awards 2003.

Asiamoney AWARDS:
2006

Business Today Best Bank in India.

Forbes Magazine One of Asia Pacific's Best 50 companies.
Businessworld Best listed Bank of India.
The Asset Best Domestic Bank.
Magazine's Triple A
Country Awards
Asiamoney Awards Best Local Cash Management Bank in Large and Medium segments.
Euromoney Awards "Best Bank" in India.

CREDIT RATING

HDFC Bank has its deposit programmes rated by two rating agencies - Credit Analysis &
Research Limited. (CARE) and Fitch Ratings India Private Limited. The bank's Fixed Deposit
programme has been rated 'CARE AAA (FD)' [Triple A] by CARE, which represents instruments
considered to be "of the best quality, carrying negligible Investmentrisk".

CARE has also rated the bank's Certificate of Deposit (CD) programme "PR 1+" which represents
"superior capacity for repayment of short term promissory obligations". Fitch Ratings India Pvt.
Ltd. (100% subsidiary of Fitch Inc.) has assigned the "tAAA ( ind )" rating to the bank's deposit
programme, with the outlook on the rating as "stable". This rating indicates "highest credit
quality" where "protection factors are very high".

HDFC Bank also has its long term unsecured, subordinated (Tier II) Bonds of Rs.4 billion rated
by CARE and Fitch Ratings India Private Limited. CARE has assigned the rating of "CARE
AAA" for the Tier II Bonds while Fitch Ratings India Pvt. Ltd. has assigned the rating "AAA( ind
)" with the outlook on the rating as "stable". In each of the cases referred to above, the ratings
awarded were the highest assigned by the rating agency for those instruments.

CORPORATE GOVERNANCE RATING

The bank was among the first four companies, which subjected itself to a Corporate Governance
and Value Creation (GVC) rating by the rating agency, The Credit Rating Information Services
of India Limited (CRISIL). The rating provides an independent assessment of an entity's current
performance and an expectation on its "balanced value creation and corporate governance
practices" in future. The bank has been assigned a 'CRISIL GVC Level 1' rating, which indicates
that the bank's capability with respect to wealth creation for all its stakeholders while adopting
sound corporate governance practices is the highest.We are aware that all these awards are mere
milestones in the continuing, never-ending journey of providing excellent service to our
customers. We are confident, however, that with your feedback and support, we will be able to
maintain and improve our services.

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS

ENDED DECEMBER 31, 2007
HDFC BANK LTD (NYSE)
HDB 99.51 -1.38 (-1.37%) Vol. 223,154 16:02 ET
Annual Balance Sheet
Fiscal Year End for HDFC BANK LTD falls in the month of March.
All items in Millions except Per Share data.
03/31/08 03/31/07 03/31/06 03/31/05 03/31/04
Assets
Cash & Equivalents -96,304.42 1,968.20 1,536.40 1,090.20 1,220.30
Receivables 0 12,818.50 9,081.30 5,992.60 4,190.30
Notes Receivable 0 0 0 0 0
Inventories 0 0 0 0 0
Other Current Assets 0 297.40 0 0 82.10
Total Current Assets 3,694.58 15,084.10 10,617.70 7,082.80 5,492.70
Net Property & Equipment 293.78 241.20 195.90 162.40 142.10
Investments & Advances 28,205.11 7,059 6,147.90 4,683.50 4,052.40
Other Non-Current Assets 0 0 0 0 0
Deferred Charges 0 0 0 0 0
Intangibles 0 0 0 0 0
Deposits & Other Assets 1,100.60 1,123.40 821.10 209.20 147.70
Total Assets 33,294.15 23,507.70 17,782.60 12,137.90 9,834.90

Liabilities & Shareholder's Equity

Notes Payable 0 2,458.70 1,701.40 1,423.20 554.50
Accounts Payable 25,192.15 15,831.70 12,529.30 8,334.30 7,006
Current Portion Long-Term Debt 0 0 0 0 0
Current Portion Capital Leases 0 0 0 0 0
Accrued Expenses 0 2,910.30 1,921.50 1,134 1,414.90
Income Taxes Payable 0 0 0 0 0
Other Current Liabilities 0 0 0 0 0
Total Current Liabilities 25,192.15 21,200.70 16,152.20 10,891.50 8,975.40
Mortgages 0 0 0 0 0
Deferred Taxes/Income 0 0 0 0 0
Convertible Debt 0 0 0 0 0
Long-Term Debt 1,119.71 779.60 382.80 115.30 140.20
Non-Current Capital Leases 0 0 0 0 0
Other Non-Current Liabilities 4,107.97 0 0 0 0
Minority Interest (Liabilities) 0 7.50 5 0 0
Total Liabilities 30,419.84 21,987.80 16,540 11,006.80 9,115.60

Shareholder's Equity
Preferred Stock 0 0 0 0 0
Common Stock (Par) 0 74.10 70.40 71 65.20
Capital Surplus 88.60 701.30 602.60 591.20 288.60
Retained Earnings 2,785.70 568.50 411.10 295.10 208.70
Other Equity 0 176 158.50 173.80 156.80
Treasury Stock 0 0 0 0 0
Total Shareholder's Equity 2,874.30 1,519.90 1,242.60 1,131.10 719.30
Total Liabilities & Shareholder's Equity 33,294.15 23,507.70 17,782.60 12,137.90 9,834.90
102,873.3
Total Common Equity 1,519.90 1,242.60 1,131.10 719.30
0
Shares Outstanding 117.80 106.40 103.20 103.20 94.20
Book Value Per Share 873.29 14.28 12.04 10.96 7.64
 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04
Income : Frequency Percent Valid Percent Cumulative
Percent
Operating 8,303.3 3,723.8
Valid Less 12,354.41 6 5,567.67
5.9 7.5 2,970.15
7.5
Income Efficient(1) 4 6
2 6 5.9 7.5 15.0
Expenses
3 1 1.0 1.3 16.3
Financial 3,179.4 1,315.5
4 4,887.12 7 1,929.50
6.9 8.8 1,211.05
25.0
Expenses
5 510 9.9 6 12.5 37.5
Personnel
6 10 9.9 12.5 50.0
1,301.35
Efficient(7)
776.86
40
486.82
39.6
276.67
50.0
204.09
100.0
Expenses
Selling
114.73 74.88 80.85 54.95 37.06
Expenses
Adminstrativ 1,519.3
2,247.48 1,424.59 785.93 621.41
e Expenses 2
Expenses
0.00 0.00 0.00 0.00 0.00
Capitalised
Operating 5,550.5 2,433.1
8,550.68 3,921.76 2,073.61
Expenditure 1 age 1 Total
Operating Under 18 2,752.8
between between 1,290.7
between between 50
3,803.73 18 to 25 1,645.91
25 to 35 35 to 50 896.54
to 75
ICICI Count Profit 0 3 5 17 5 3 4 29
Other
% within which bank .0% 17.2% 58.6% 10.3% 13.8%
would you prefer 100.0%
Recurring 43.04 102.96 31.38 20.76 59.26
% within age .0% 21.7% 34.7% 15.8% 57.1% 29.3%
Income
% of Total .0% 5.1% 17.2% 3.0% 4.0% 29.3%
IDBI Count Adjusted 0 2,855.71 7 1,311.5 1 0 9
% within which bank 3,846.77
.0% 11.1% 1,677.29
77.8% 11.1% 955.80.0%
would PBDIT
you prefer
Histogram9 1 100.0%
Provisions
% within age .0% 4.3% 14.3% 5.3% .0% 9.1%
1,294.67 754.90 0.00 0.00 16.70
50 % of Total
Made .0% 1.0% 7.1% 1.0% .0% 9.1%
Andhra Count Depreciation 271.72 0 219.603 178.59 5 144.07 3 125.72 2 13
% within whcichWrite
Other bank .0% 23.1% 38.5% 23.1% 15.4%
would you prefer 100.0%
40 0.00 241.09 245.16 188.06 93.22
offs
% within age .0% 13.0% 10.2% 15.8% 28.6% 13.1%
Earnigs
Frequency

% of Total .0% 3.0% 5.1% 3.0% 2.0% 13.1%

30 ING Count N 0
Valid 3 1003 5 1 12
Before Frequen 2,596.1
Percent Valid 1,070.6 Cumulative
% within whcich bank .0%
3,522.15 25.0% 25.0%
1,473.12 41.7% 8.3%
Percent865.63
Missing 1
would Appropriatio
you prefer cy Percent 100.0%
Valid Mean < 6
2 7 6.9 4.25 2
7.1 7.1
20 % within age Median .0% 13.0% 6.1%
5.00 26.3% 14.3% 12.1%
n months
% of Total Mode 1 .0% 26 3.0% 25.7 3.0%5 26.3 5.1% 33.3 1.0% 12.1%
SBI Count 2
Std. Deviation 1 17 11 16.8 17
1.282 17.2 7 50.5 0 36
10 Equity
% within whcich bankN 3 Mean Std.
14
Frequency 30.6%
2.8% Deviation
13.9 Std.
Percent 47.2% Error
14.1 95% Confidence
64.6
Valid Percent19.4%Cumulative.0% Interval for Mean
100.0%
would you
N prefer 4
301.27 Valid 223.57
10
172.23 10.1140.07
9.9 98 100.05
Percent
74.7
Dividend Lower Bound Upper Bound
Dmat 1% within
Valid
age 5
Costly(1) Missing135 47.8% 12.9
100.0% 5.0 34.7% 5.116.3 3 36.8% 79.8 16.3
Mean =4.14 .0% 36.4%
Preference
Under 18% of Total 1 2.00 87 11.1% 6.9 . 17.2% 7.1
Std. Dev. =1.308
. 7.1% Dmat . .0% 1 .
FD
0
2 Mean 2 6 0.004
1.0% 0.00 6 0.00 7.9 4.14
10.0
0.00 86.9
N =98
0.00 26.3 36.4%

A Comparative Study Among the

0 2
between
Mutual Funds
Count 18 to 25
Dividend
Median
3 of which among
The service
7 21 3.71
3 the following products
1 4 1.189
3 do 23 3.04.0 49 .260
4.0
5.003.8 19 FD 90.9 3.1730.0 7 24.26
99
between
Credit Cards
% within 4
25
which to 35
Dividend
Mode
bank would you4
you
8 46
prefer in hdfc
Sum of
3.70
1.0% 114
df 23.2%
4.0
1.227
10.9 49.5%
Mean Square
4.0
.181 5
13.8
19.2%
F Mutual
94.9 3.33Funds
43.8
7.1%
Sig. 34.06
100.0%
SB/CA/Sal Data
Market
between Annexures
analysis….
50 Research….
Emerging
between 35 to 50
prefer
5
to
Std. Deviation
75
Loans % within 6age Between
Skewness
5
6
Groups
917

Commercial Banks …
Total
Missin System
7
Squares 3.35 135
3.86
100.0%
4.670
99
4100.0%
4
5.0
.786
12.9
98.0
.378
4.0100.0%
5.116.3 Credit
.191
1.308
100.0
.143
1.168 -.749 100.0%
5.0 .951
100.02.95
SB/CA/Sal
Cards
3.51
60.0
100.0%
65.0
.438
4 3.76
5 4.21
100.0%
Total
% of Total Std.Groups
Within Error
g of
92
Skewness
Less costly 3.63
1.0%
106.764 282 23.2%
87 1.107
2.0 49.5%
27.7 .115
1.227 .244 19.2%
35.0 Loans 100.0
3.40 7.1% 6100.0%
3.86