Presented By:
Rasapally Sathwik
Jayan
BANKING
A Bank is a financial institution whose primary activity is to
act as a payment agent for customers and to borrow and lend
money.
Banking is defined as the business activity of accepting and
safeguarding money owned by other individuals and entities,
and then lending out this money in order to conduct economic
activities such as making profit or simply covering operating
expenses
Major players in India
State Bank of India
HDFC Bank
ICICI Bank
HSBC Bank
IDBI Bank
City Bank
Axis Bank
About the bank
HDFC Bank Limited is an Indian financial services company based
in Mumbai , Maharashtra that was incorporated in August 1994.
The first largest bank by Market Capitalization as of November 1, 2012.
As on May 2013, HDFC Bank has 3,062 branches and 10,743 ATMs, in
1,568 cities in India.
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's American Depository Shares (ADS) are listed on the New
York Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's
Global Depository Receipts (GDRs) are listed on Luxembourg Stock
Exchange
Objective
To build sound customer franchises across distinct
businesses so as to be a preferred provider of banking
services for target retail and wholesale customer
segments, and to achieve a healthy growth in
profitability, consistent with the Bank's risk appetite.
Vision & Mission
Vision
To be customer driven best managed enterprise that enjoys
market leadership in providing housing related finance.
Mission
To provide a package of attractive financial services for
housing purposes through a competent and motivated team of
employees using the state of the art technology to maintain
financial stability and growth of the organization whilst
contributing to the national goal of providing decent housing to
all.
Business Strategy
Increase market share in India’s expanding banking and financial
services industry by following a disciplined growth strategy
focusing on quality and not on quantity and delivering high
quality customer service.
Leverage our technology platform and open scaleable systems to
deliver more products to more customers and to control operating
costs.
Maintain current high standards for asset quality through
disciplined credit risk management.
Develop innovative products and services that attract the targeted
customers and address inefficiencies in the Indian financial sector.
Product & services
Travellers Cheques Credit cards
Foreign Currency Cash Consumer banking
Foreign Currency Demand Drafts
Commercial banking
Cheque Deposits
Finance and insurance
Remittances
Investment banking
Trade Services
Mortgage loans
Mutual funds
Insurance Private banking
Private equity
Travellers Cheques : Travellers Cheques are a safe and easy
way to protect your money when you travel. You can encash
them only when you need to, and only against your signature,
unlike cash which can be stolen and misused by anybody,
immediately.
Credit Card : Credit Card can be used for all your
requirements, be it shopping, eating out, holidaying, fuelling
up your vehicle, railway ticket reservations - just about any
financial requirement, planned .
Home loan : Home loans for individual to purchase or
construct houses.
Personal Loans : The procedure of personal loan is simple,
documentation is minimal and approval is quick.
• Trade Service : HDFC Bank have people with high level of
expertise and experience in trade services to provide services to suit
specific requirements and structure solutions for business needs.
HDFC Bank have 500 branches for trade services.
• Mutual funds : Mutual funds are funds that pool the money of
several investors to invest in equity or debt markets.
• Insurance : HDFC Bank offers a world of choice in insurance.
Like – children future plans, retirements plans, standard life, etc.
• Remittances : HDFC Bank offers the remittance facilities by which
we can send and receive money to anyone. They are categorized
depending on location and the urgency with which we want the
money transferred.
Awards and Recognition
2020
• India's Best Bank : Euromoney Awards
2019
• Best Bank: New Private Sector – FE Best Bank awards
• India’s Best Bank, Euromoney Awards for Excellence 2019
• Best Bank in India 2019, by Global magazine FinanceAsia.
Controversies
On 2 December 2020, the Reserve Bank of India ordered HDFC
Bank to temporarily halt the issuance of new credit cards and all
planned activities under the bank's Digital 2.0 program citing
incidents of outages in the bank's internet banking, mobile
banking and payment utility services.
On 29 January 2020, Reserve Bank of India imposed a monetary
penalty on HDFC Bank for failure to undertake on-going due
diligence in case of 39 current accounts opened for bidding in the
initial public offer.
A HDFC bank manager was arrested on charges of fraud,
involving a sum of ₹59.41 lakh, in Odisha
Segmentation strategy
Demographics variables
Location
- Metros & divisional cities
Occupation
- Business person
- Salaried class (both govt. & private)
Age
- Senior citizens
- Minor
psychographic variables
Lifestyle- People who believes in modern banking with higher set of service
i. e. internet banking (incontact, mobile refill, travel currency card etc.)
Targeting strategy
Target market
Corporate banking market : this market target the
industries & fulfill their financial needs.
Capital market : this segment is targeted on the long
term needs of the individual as well as of industries.
Retail banking market : this segment is for retail
investors & provide them short term financial credit for
their personal, house hold needs.
Capital Structure
The authorized capital of HDFC Bank is Rs550 crore (Rs5.5
billion).
The paid-up capital is Rs424.6 crore (Rs.4.2 billion).
The HDFC Group holds 19.4% of the bank's equity
Roughly 28% of the equity is held by Foreign Institutional
Investors (FIIs) and the bank has about 570,000
shareholders
SWOT ANALYSIS
Strengths Weaknesses
Rising Net Cash Flow and • Decline in Net Profit with
Cash from Operating falling Profit Margin
activity • Promoter decreasing their
Company with Zero shareholding
Promoter Pledge
SWOT ANALYSIS
Opportunities Threats
• Brokers upgraded Increase in NPA( non-
recommendation or target performing asset ) in Recent
price in the past three Results
months
• Decrease in Provision in
recent results
• Insiders bought stocks
