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CHAPTER 1: INTRODUCTION

1)  Retail banking is banking in which banking institutions executetransactions directly with consumers, rather than corporations or other

 banks. Services offered include: savings and transactionalaccounts, mortgages, personal loans, debit cards, credit cards, and so forth.

  Commercial bank has two meanings:

  Commercial bank is the term used for a normal bank to distinguish it from

an investment bank. (After the great depression, the U.S. Congress required

that banks only engage in banking activities, whereas investment banks

were limited to capital markets activities. This separation is no longer

mandatory.)

 

Commercial bank can also refer to a bank or a division of a bank that mostlydeals with deposits and loans from corporations or large businesses, as

opposed to normal individual members of the public (retail banking). It is

the most successful department of banking.

  Community development bank are regulated banks that provide financialservices and credit to underserved markets or populations.

  Private Banks manage the assets of high net worth individuals.

  Offshore banks are banks located in jurisdictions with low taxation and

regulation. Many offshore banks are essentially private banks.

  Savings banks accept savings deposits.

  Postal savings banks are savings banks associated with national postal

systems.

Retail Banking services are also termed as Personal Banking services.

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Banking & Financial Institutions

The Indian consumer is fast changing his habits, borrowing money to buythe products he wants, not content with buying what he can afford. Theresultant consumer boom is what market strategies explain as the key tosuccess of the Indian consumer finance market.

Consumer finance today is a win-win system in which everyone stands togain. For an Indian consumer, it is an opportunity to upgrade his standard ofliving right now instead of waiting for years for his savings to accumulate.For manufacturers, it stimulates demand and lowers inventory. Formiddlemen, it is a sales booting device. For players of consumer finance, itis a means of profit generation.

The buy-now-pay-later culture is still fairly nascent in India, evolvingthrough various forms like consumer lending, consumer credit, consumerloans, friendly and family borrowings, kitties, daily payment schemes, etc.the basic underpinning of consumer financing is that the consumer‟s

spending habits tend to be geared to expectations of future income. They arelosing their fear of borrowing, riding surfboards of consumer finance.

Retail banking is quiet broad in nature  –   it refers to the dealing incommercial banks with individual consumers, both on the liabilities andassets side of the balance sheet. Fixed/ current, Saving deposits on theliabilities side; and mortgages, loans (eg: personal, housing, auto andeducational) on the assets side are the more important products offered bythe banks. Related ancillary services include, credit cards or depositoryservices. Today‟s retail banking sector is characterized by three basic

characteristics:

  Multiple products (deposits, credit cards, insurance, investments andsecurities)

 

Multiple channels of distribution (call center, branch, internet and kiosk)

  Multiple consumer groups (consumer, small business and corporate)

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Retail Banking Strategies in the Present Scenario 

Identifies and analyses management excellence in key dimensions such as:

Business models: Is there one best business model? Which ones haveoutperformed others? And why? Is a pure retail bank a viable model? Ifnot, why not? How does the retail function interact with other units in thesuccessful banks? How do the successful banks  –   especially those indiversified models  –   ensure that customer relationships are effectivelymanaged? What is the culture of a successful retail model? How have once-successful retail models lost their effectiveness?

Product range, Priorities, range, evolution, breadth, profitability, pricing andother central elements.

Client base: With the enhanced importance of the customer post thefinancial crisis, four key dimensions of the customer base are examined:how the bank prioritizes the segments of this base; views on their clients‟

needs and behavior; how performance in serving the client is measured; andthe impact of new bank regulation, introduced since the crisis, largely to

 protect the customer.

Geographic scope: How the „back to basics‟ theme from the banking crisis

is echoed in the geographic scope of bank retail strategies.

Retail distribution channels: How the four dimensions of channelmanagement are reflected in bank strategies: the theoretical role of the

 branch and other channels; the challenge of integrating the channels; trendsin channel management; and unresolved issues for the future.

Retail leadership and culture: Is there a unique culture or leadership stylein successful retail banks? How might it differ from other businesses? Whatcan we learn from the management style and culture of the case studies of

excellence?

Cost base and bank operating systems: What factors drive the widedifference in perceived bank cost/income ratios? What is the relativeimportance of a bank‟s core system in contrast to other factors, such as

discipline in cost management? How are banks attempting to reduce theircost base, and what might be the likely outcome? What are the systems

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issues facing a bank‟s management, and how might they be resolved? 

Risk management and regulation: How bank decision-making structureshave been impacted; and the future outlook; and how effectively bankmanagement might deal with risk in the future.

The impact of the banking crisis on retail bank profitability : The driversof future profitability; and the likely outcomes in terms of bottom linereturns on equity. 

Present Scenario

  Indian retail banking has been showing phenomenal growth

  In 2004-05, 42% of credit growth came from retail

 Over the last 5 years CAGR has been over 35%

 Retail credit level crossed Rs.189Crore in 2004-05

 Market has transformed into a „buyer‟s market‟ from a „seller‟s market‟ 

 Comprises of multiple products, channels of distribution and multiple

customer groups

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Retail banking strategies in future 

Future of Retail Banking

 The accelerated retail growth has been on a historically low base

 Penetration continues to be significantly low compared to global bench marks

 Share of retail credit expected to grow from 22% to 36%

 Retail credit expected to grow to Rs.575,000 crs by 2010 at an annual growth

rate of 25%

 Dramatic changes expected in the credit portfolio of Banks in the next 5

years

 Housing will continue to be the biggest growth segment, followed by Auto

loans

 Banks need to expand and diversify by focussing on nonurban segment as

well as varied income and demographic groups

 Rural areas offer tremendous potential too which needs to be exploited

Strategies for Future

 Reaching to masses: Need to customize

 Customer segmentation/differentiation

 Data mining/CRM based campaigns

 Products per customer/loyalty

 Promoting low risk retail lending products

 Offer an array of products and financial advisory.

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CHAPTER 2: RETAIL BANKING IN INDIA 

Retail banking in India is not a new phenomenon. It has always been prevalent in

India in various forms. For the last few years it has become synonymous banking

for many banks.

The typical products offered in the Indian retail banking segment are housing

loans, consumption loans for durables, auto loans, credit cards and educational

loans. The loans are marketed under attractive brand names to differentiate the

 products offered by different banks. As the  Report On Trend & Progress Of India.

2003-2004, has shown the loan values of these retail lending typically range

 between Rs. 20,000 to Rs. 100 lakhs. The loans are generally of duration from 5 to

7 years with housing loans granted for a longer duration of 15 years. Credit card is

another rapidly growing sub- segment of this product group.

In the recent past, retail lending has turned out to be a key profit driver for banks

with retail portfolio constituting 21.5% of total outstanding advances as on March

2004. The overall impairment of the retail loan portfolio worked out much less

than the Gross NPA ratio for the entire loan portfolio.

With a jump in the Indian economy from a manufacturing sector, that never really

took off, to a nascent service sector, Banking as a whole is undergoing a change. A

larger option for the consumer is getting translated into a larger demand forfinancial products and customization of services is fast becoming the norm than a

competitive advantage. With the Retail banking sector expected to grow at a rate of

30% [ChandaKochhar, ED, ICICI Bank] players are focusing more and more on

the Retail and are waking up to the potential of this sector of banking. At the same

time, the banking sector as a whole is seeing structural changes in regulatory

frameworks and securitization and stringent NPA norms expected to be in place by

2004 means the faster one adapts to these changing dynamics, the faster is one

expected to gain the advantage. In this article, we try to study the reasons behindthe euphemism regarding the Retail-focus of the Indian banks and try to assess

how much of it is worth the attention that it is attracting.

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Potential for Retail in India: Is sky the limit?

The Indian players are bullish on the Retail business and this is not totally

unfounded. There are two main reasons behind this. Firstly, it is now undeniable

that the face of the Indian consumer is changing. This is reflected in a change inthe urban household income pattern. The direct fallout of such a change will be the

consumption patterns and hence the banking habits of Indians, which will now be

skewed towards Retail products. At the same time, India compares pretty poorly

with the other economies of the world that are now becoming comparable in terms

of spending patterns with the opening up of our economy. For instance, while the

total outstanding Retail loans in Taiwan is around 41% of GDP, the figure in India

stands at less than 5%. The comparison with the West is even more staggering.

Another comparison that is natural when comparing Retail sectors is the use of

credit cards. Here also, the potential lies in the fact that of all the consumer

expenditure in India in 2001, less than 1% was through plastic, the corresponding

US figure standing at 18%.

But how competitive are the players?

The fact that the statistics reveal a huge potential also brings with it a threat that is

true for any sector of a country that is opening up. Just how competitive are our banks? Is the threat of getting drubbed by foreign competition real? To analyze

this, one needs to get into the shoes of the foreign banks. In other words, how do

they see us? Are we good takeover targets?

Going by international standards, a large portion of the Indian population is simply

not “bankable” –   taking profitability into consideration. On the other hand, the

financial services market is highly over-leveraged in India. Competition is fierce,

 particularly from local private banks such as HDFC and ICICI, in the business of

home, car and consumer loans. There, precisely lie the pitfalls of such explosivegrowth. All banks are targeting the fluffiest segment i.e. the upwardly mobile

urban salaried class. Although the players are spreading their operations into

segments like self- employed and the semi-urban rich, it is an open secret that the

 big city Indian yuppies form the most profitable segment. Over-dependence on this

segment is bound to bring in inflexibility in the business.

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Drivers of Retail Banking In India

Reduction in I nterest Rates:

There has been a continuous decrease in interest rates over the last 5-6 years. For

instance, fixed interest rates for loans amounting to Rs. 5 lakhs for a tenure of 15years have fallen from 16% in 1997-98 to as low as 7% in 2003-04. This reduction

in interest rates coupled with increasing competition resulted in product

innovations and competitive pricing in the market.

Changes in demographic profi le:

Today the average age of borrower has declined from 40 years about 5 years ago

to, now, an estimated 30 years. In the future the average age is expected to reduce

further and hence it will augur well for the housing finance market in terms ofincreased borrowers.

Decline in average house costs:

There has been a reduction in average house costs to annual income ratio by 4-

times from high of a 11-14 a decade ago. This has also resulted in affordable EMI

as a percentage of monthly income.

Aggressive lending by banks:

Banks found a breather in housing loans as a means to deploy funds on back of lull

in credit off take by the corporate sector. To add to that the sector called for lower

risk weights, provided attractive spread and has lower level of delinquency.

Tax breaks:

The recent budgets provided for various tax and fiscal incentives for deploying

funds in the housing sector. The Reserve Bank of India (RBI) has also directed

commercial banks to allocate at least 3% of their incremental deposits in fiscal2002 to housing loans. At the same time the policy of the Reserve Bank of India

regarding the inclusion of Mortgaged backed securities as a part of priority sector

lending for banks and reducing the risk-weight on home loans from 100% to 50%

made the sector more attractive than the banks.

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Other growth drivers

  Economic prosperity and the consequent increase in purchasing power has

given a fillip to a consumer boom. Note that after the 10 years after 1992,

India‟s economy grew at an average rate of 6.8% and continues to grow atalmost the same rate- not many countries in the world match this

 performance.

  Changing consumer demographics indicate vast potential for growth in

consumption both qualitatively and quantitatively. India is one of the

countries having highest proportion (70%) of the population below 35 years

of age (young population). The BRIC report of the Goldman-Sachs, which

 predicted a bright future for Brazil, Russia, India and China, mentioned

Indian demographic advantage as an important positive factor for India.

  Technological factors played a major role. Convenient banking in the form

of debit cards, internet and phone-banking, anywhere and anytime banking

has attracted many new customers into the banking field. Technological

innovations relating to increasing use of credit/debit cards, ATM‟s, Direct

debits and phone banking has contributed to the growth of retail banking in

India.

 

Treasury income of the banks, which had strengthened the bottom lines of banks for the past few years, has been on a decline for the last 2 years. In

such a scenario, retail business provides a good vehicle of profit

maximization.

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Opportunities and Challenges of Retail Banking in India

Retail banking has immense opportunities in a growing economy like India. As the

growth story gets unfolded in India, retail banking is going to emerge a major

driver. How does the world view us? I have already referred to the BRIC Reporttalking India as an economic superpower. A. T. Kearney, a global management

consulting firm, recently identified India as the 'second most attractive retail

destination' of 30 emergent markets.

The rise of the Indian middle class is an important contributory factor in this

regard. The percentage of middle to high income Indian households is expected to

continue rising. The younger population not only wields increasing purchasing

 power, but as far as acquiring personal debt is concerned, they are perhaps more

comfortable than previous generations. Improving consumer purchasing power,coupled with more liberal attitudes toward personal debt, is contributing to India's

retail banking segment.

The combination of the above factors promises delivery channels, the areas of

 potential conflicts of interest tend to increase in universal banks and

financialconglomerates. Some of the key policy issues relevant to the retail

 banking sector are: financial inclusion, responsible lending, access to finance,

long-term savings, financial capability, consumer protection, regulation and

financial crime prevention. What are the challenges for the industry and its

stakeholders?

First, retention of customers is going to be a major challenge. According to a

research by Reichheld and Sasser in the Harvard Business Review, 5 per cent

increase in customer retention can increase profitability by 35 per cent in banking

 business, 50 per cent in insurance and brokerage, and 125 per cent in the consumer

credit card market. Thus, banks need to emphasize retaining customers and

increasing market share.

Second, rising indebtedness could turn out to be a cause for concern in the future.

India's position, of course, is not comparable to that of the developed world where

household debt as a proportion of disposable income is much higher. Such a

scenario creates high uncertainty. Expressing concerns about the high growth

witnessed in the consumer credit segments the Reserve Bank has, as a temporary

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measure, put in place risk containment measures and increased the risk weight

from 100 per cent to 125 per cent in the case of consumer credit including personal

loans and credit cards ( Mid-term Review of Annual Policy, 2004-05).

Third, information technology poses both opportunities and challenges. Even withATM machines and Internet Banking, many consumers still prefer the personal

touch of their neighbourhood branch bank. Technology has made it possible to

deliver services throughout the branch bank network, providing instant updates to

checking accounts and rapid movement of money for stock transfers. However,

this dependency on the network has brought IT departments additional

responsibilities and challenges in managing, maintaining and optimizing the

 performance of retail banking networks. Illustratively, ensuring that all bank

 products and services are available, at all times, and across the entire organization

is essential for today‟s retails banks to generate revenues and remain competitive.

Besides, there are network management challenges, whereby keeping these

complex, distributed networks and applications operating properly in support of

 business objectives becomes essential. Specific challenges include ensuring that

account transaction applications run efficiently between the branch offices and data

centers.

Fourth, KYC Issues and money laundering risks in retail banking is yet another

important issue. Retail lending is often regarded as a low risk area for moneylaundering because of the perception of the sums involved. However, competition

for clients may also lead to KYC procedures being waived in the bid for new

 business. Banks must also consider seriously the type of identification documents

they will accept and other processes to be completed. The Reserve Bank has issued

details guidelines on application of KYC norms in November 2004.

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CHAPTER 3: HDFC BANK PROFILE

HDFC Bank Limited is an Indian financial services company based in Mumbai,Maharashtra. It was incorporated in 1994. HDFC Bank is the fifth largest bank in

India by assets. It is the largest bank in India by market capitalization as of 24February 2014. As on Jan 2 2014, the market cap value of HDFC was around USD26.88B, as compared to Credit Suisse Group with USD 47.63B.The bank was

 promoted by the Housing Development Finance Corporation,  a premier housingfinance company (set up in 1977) of India.

As of 31 March 2013, the bank had assets of INR 4.08 trillion. For the fiscal year2012-13, the bank has reported net profit of INR 69  billion,  up 31% from the

 previous fiscal year. Its customer base stood at 28.7 million customers on 31March 2013.

HISTORY

HDFC Bank Limited was incorporated in August 1994. It was promoted byHousing Development Finance Corporation Limited (HDFC), India's largesthousing finance company. It was among the first companies to receive an 'in

 principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. The Bank started operations as a scheduled commercial bank inJanuary 1995 under the RBI's liberalization policies.

On 26 February 2000, Times Bank Limited owned by The Times Group (Bennett,Coleman & Co.) was merged with HDFC Bank Ltd. This was the first merger oftwo private banks in India. Shareholders of Times Bank received 1 share of HDFCBank for every 5.75 shares of Times Bank.

On 23 May 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 aboutRs. 1,22,000 crore and net advances of about Rs. 89,000 crore. The balance sheetsize of the combined entity is more than Rs. 1,63,000 crore.

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HDFC Bank Limited

"We understand your world"

Type  Public

Traded as

BSE: 500180 NSE: HDFCBANK NYSE: HDBBSE SENSEX ConstituentCNX Nifty Constituent

Industry Banking, Financial services

Founded August 1994

Headquarters Mumbai, Maharashtra, India

Area served Worldwide

Key people Aditya Puri (MD)

Products

Credit cards, consumer banking, corporate banking, finance and insurance, investment banking, mortgage

loans, private banking, privateequity, wealth management

RevenueUS$ 6.5 billion (March

2013)

Operatingincome  

US$ 1.87 billion (March2013)

ProfitUS$ 1.1 billion (March

2013)

Total assets 

US$ 66.7 billion (May 2013)Total equity US$ 8.6 billion (March 2013

Employees 69,065 (March 2013)

Website HDFCBank.com

 

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SERVICES

Wholesale banking services

HDFC Bank provides a range of commercial and transactional banking services,including working capital finance, trade services, transactional services, cashmanagement, etc. to large, small and mid-sized corporates and agriculture-based

 businesses in India. The bank is also a leading provider of these services to itscorporate 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 inassociation with VISA (Visa Electron). The bank also issues the MasterCard

Maestro debit card. The Bank launched its credit card business in late 2001. By theend of June 2013, it had a credit card base of 5.94 million. By March 2012, the

 bank had a total card base (debit and credit cards) of over 19.7 million. The Bankis also one of the leading players in the "merchant acquiring" business with over240,000 point-of-sale (POS) terminals for debit / credit cards acceptance atmerchant establishments. The Bank is positioned in various net based B2Copportunities including a wide range of Internet banking services for FixedDeposits, Loans, Bill Payments, etc.

Treasury

The bank has three main product areas - Foreign Exchange and Derivatives, LocalCurrency Money Market & Debt Securities, and Equities. These services are

 provided through the bank's Treasury team. To comply with statutory reserverequirements, the bank is required to hold 25% of its deposits in governmentsecurities. The Treasury business is responsible for managing the returns andmarket risk on this investment portfolio.

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OPERATIONS

As of 30 September 2013, HDFC Bank has 3,251 branches and 11,177 ATMs, in2,022 cities in India, and all branches of the bank are linked on an online real-time

 basis. The Bank has overseas branch operations in Bahrain and Hong Kong.[2][11] 

HDFC Bank has two subsidiaries:

HDB Financial Services Limited („HDBFS‟): HDBFS is engaged in retail asset

financing. It is a non-deposit taking non-bank finance company (NBFC). Apartfrom lending to individuals, the company grants loans to micro, small and medium

 business enterprises. It also runs call centers for collection services to the HDFCBank‟s retail loan products. HDFC Bank holds 97.4% shares in HDBFS. As of

March 31, 2013, HDBFS has 230 branches in 184 cities. During the FY 2012-13,

HDBFS had turnover of INR 9.6 billion and profit after tax of INR 1 billion. It has6,404 employees as of 31 March 2013.

HDFC Securities Limited („HSL‟): HSL is engaged in stock broking. As of March

31, 2013, HDBFS has 194 branches across 150 cities. HDFC Bank has 62.1%shareholding in HSL. During the FY 2012-13, HSL had turnover of INR 2.3 billionand profit after tax of INR 668 million. During the year, the Company received the“Best e-Brokerage Award - 2012” in the Outlook Money Awards in the runner upcategory.

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CHAPTER 4: RETAIL BANKING IN HDFC BANK

The objective of the Retail Bank is to provide its target market customers a full

range of financial products and banking services, giving the customer a one-stop

window for all his/her banking requirements. The products are backed by world-class service and delivered to customers through the growing branch network, as

well as through alternative delivery channels like ATMs, Phone Banking, Net

Banking and Mobile Banking.

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 MasterCard Maestro debit

card as well. The Bank launched its credit card business in late 2001. By March

2009, the bank had a total card base (debit and credit cards) of over 13 million. The

Bank is also one of the leading players in the “merchant acquiring” business with

over 70,000 Point-of-sale (POS) terminals for debit / credit cards acceptance at

merchant establishments. The Bank is 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 India‟s No.1 Private Sector Bank. 

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Accounts & Deposit

Savings Accounts

Regular Savings Account

  Access your account across a wide network of branches and ATMs

  Avail of convenient services like NetBanking and MobileBanking

Senior Citizens Account

 

Get FREE travellers‟ cheques 

  Get insurance against hospitalization in case of an accident

Limited KYC Account

  Get zero initial pay-in and a zero balance account

  Use our free MobileBanking service to bank anywhere

Kids Advantage Account

  Receive free Education Insurance cover

  Avail FREE DD/ MC at the different HDFC Bank branches

Family Savings Group Account

  Enjoy FREE lifetime EasyShop International Debit Card for all members in

the group

  Senior Citizens Account

  Get FREE travellers‟ cheques 

  Get insurance against hospitalization in case of an accident

  Savings account to savings account sweep-in to a nominated account

SavingsMax Account

  Get a FREE Titanium Royale Debit Card

  Enjoy an Accidental Hospitalization cover of Rs. 1 lac per annum

 No Frills Account

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  Get FREE NetBanking for your convenience

  Take advantage of BillPay, an instant solution to all your regular utility bill

 payments. Give payment instructions over the phone or via the Internet*

Institutional Savings Account

  Enjoy freedom from maintaining balance with our zero balance account

  Enjoy comprehensive banking with us using our various collection and

 payment services

Pension Savings Account

  Experience on time pension disbursals

  Benefit from immediate action in case family pension is devolved to spouse

Savings Plus Account

  Free lifetime International Debit Card

  Free Payable-at-Par chequebook, without any usage charges

Salary Account

Premium Salary Account

  Free Personal Accidental Death Cover of Rs. 5 lakhs*

  Free for life Titanium Debit Card for the primary applicant

Defence Salary Account

  Free Additional ATM Card for Personnel Below Office Rank (PBORs)*

  Unlimited Free Demand Drafts / Managers Cheques at HDFC Bank branch

locations

Payroll Account

  Zero balance account

  Free for life International Debit Card for the primary applicant

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Reimbursement Account

  Zero Balance Account

  Track and Manage your reimbursements separately

Regular Salary Account

  Free Personal Accidental Death Cover of Rs. 1 lakh*

  Free for life International Debit Card for the primary applicant

Classic Salary Account

  Free for life International Debit Card for the primary applicant

  Free cheque book of 25 leaves per quarter

 No Frills Salary Account

  Zero Balance Account

  Free ATM Card for life for the primary applicant

Salary Family Account

  Zero Balance Account for Family members

  Free for life Titanium Debit Card for the primary applicant.

Current account

Premium Current Account

  Free collection of funds through RTGS and NEFT

  Free local and anywhere cheque payment across HDFC Bank locations

Regular Current Account

  Free local cheque collection and payments

  Free collection of funds through RTGS and NEFT

RFC - Domestic Account

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  Retain your foreign exchange funds in the same currency in which you

receive it

  Convert your FX funds at your own opportune time

Flexi Current Account

  Free RTGS/NEFT transactions

  40 free Demand Drafts and 40 free Pay Orders issued from any HDFC Bank

Branch

Apex Current Account

  Access to more than 2000 branches

  Huge savings in inter-city transactions for payable-at-par cheques, funds

transfers, NEFT, RTGS and Demand Drafts/Pay Orders

Max Current Account

  Faster collection of outstation cheques

  Free Pay Orders which can be issued from any HDFC Bank branch

Merchant Advantage Current Account

  Pay your vendors and suppliers across the country using multiple remittance

options

  Free Regular Debit Card with a host of privileges and benefits

  Flexible cash deposit limits per month*

Merchant Advantage Plus Current Account

  Get special offers on the Business Debit Cards

  Enjoy a free monthly Cash Deposit limit* at your home branch location

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Deposits

Regular Fixed Deposit

  Earn higher interest on your savings

  Flexibility, security and excellent returns

5 Year Tax Saving Fixed Deposit

  Save with 5 year tenure

  Minimum deposit just Rs 100/-, maximum Rs 1 lakh

Super Saver Facility

  Like two accounts working together

  Enjoy a high rate of interest and benefit from an overdraft facility up to 75%

of the value of your Fixed Deposit

Sweep-in Facility

  Avoid overdrafts while still taking advantage of your Fixed Deposits

  Choose between a Savings or Current Account to link to your Fixed Deposit

Recurring Deposit

  Invest every month and be prepared for the future

  Make investments as small as Rs 500/- per month

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Demat Account

HDFC Bank is a leading Depository Participant in India with over 1.4 million

Demat Accounts.

HDFC Bank Demat Services offers you a secure and convenient way to keep trackof your securities and investments, without the hassle of handling physical

documents

Features:

   No Account Opening charges

  1st year waiver on Annual Folio Maintenance Charges

  Transaction linked Annual Folio Maintenance charge from 2nd year

onwards (More you transact, Lesser you pay)

  Why open a Demat account?

  HDFC Bank is a leading Depository Participant in India with over 1.4

million Demat Accounts.

  HDFC Bank Demat Services offers you a secure and convenient way to keep

track of your securities and investments, without the hassle of handling

 physical documents

  What are the features?

   No Account Opening charges

  1st year waiver on Annual Folio Maintenance Charges

  Transaction linked Annual Folio Maintenance charge from 2nd year

onwards (More you transact, Lesser you pay)

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Safe Deposit Locker

Features

  Wide availability of locker locations and sizes

  Access to safe-deposit lockers at all branches, no matter where your account

is held.

  Lockers are rented for one year, and rent is payable in advance.

  Lockers can be hired by individuals, limited companies, associations and

trusts

  To use a locker, you should hold a Savings or Current account with HDFC

Bank

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Loans

Personal Loan

Personal Loan

  Super fast application processing and disbursal

  Service at your doorstep

   No guarantor/security/collateral required

SmartDraft - Overdraft Against Salary

  Easy-to-use and easy-to-pay facility

   No pre-closure charges

  Minimum & easy documentation

Business Loan

  These funds can be used for business expansion, working capital, your

child's education or home renovation

   No collateral or guarantor surety required. A guarantor becomes a co-

endorser and assumes liability in event of default.

Loans for professionals

  Hassle free processing

  Speedy loan approval

Home loan

  Flexible repayment options

  Added security with Loan Cover Term Assurance Plan (LCTAP)

  Automated Repayment of Home Loan EMIs

  In-house scrutiny of property documents

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Car Loans

  Covers the widest range of cars and multi-utility vehicles in India

  Borrow up to 3 - 6 times your annual income

 

Avail up to 100% finance on your favorite car  Get exclusive customer privileges

Two Wheeler Loan

  Calculate your EMI

  Special schemes

  Speedy loan approval

  Avail up to 100% finance on your favorite car

 

Get exclusive customer privileges

Loan against Assets

Gold Loan - Term Loan

  Get instant loan on your gold jewellery and coins

  Enjoy assured security of your gold jewellery

Gold Loan - Overdraft

  Pay interest on overdraft only when you use the loan

  Enjoy the benefits of a flexible repayment structure without paying EMIs

Loan Against Securities

  Why sell securities to raise funds when you can get a loan against them?

  You pay interest on the loan only when you actually use it. No EMIs on this

facility

  Don‟t miss a chance of getting upto 80% loan against the value of your

securities

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Loan Against Property

  Do you own a property? Why not avail a loan against it?

  Lower EMI owing to long repayment tenure

  Flexible product offering –  Term Loan & Overdraft facility available

  Residential and commercial –  both types of properties accepted!

Loans Against Rental Receivables

  Maximize the benefits of future rents on your commercial property today

  Get additional funds through expected rental cash flows for growing your

 business, funding personal requirements or adding to an existing loan

Educational loan

Student Loans for Indian Education

  Get loans uptoRs. 15 lakh for education in India

  Get our service at your doorstep!

Central Government Interest Subsidy Scheme

  In order to support students from economically weaker sections of the

society, Department of Education, Ministry of Human Resource

Development, Government of India has launched an interest subsidy

scheme. The MoHRD has appointed Canara Bank as the Nodal Bank for the

Scheme

Student Loans for Foreign Education

  Get loans uptoRs. 20 lakh for your foreign education and no collateral

required if the loan amount is less than Rs. 7.5 lakh

  Get access to special remittance rates, NRE accounts, insurance and service

at your doorstep!

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Government sponsored loans

  HDFC Bank participates in a variety of Government Sponsored Programs to

support the lesser privileged strata of the society

  These schemes assist socially backward classes and help increase

employment generation.

  You can get a loan of amounts starting from as less as Rs 5,000 onwards!

  There are 3 schemes offered under government sponsored programs which

may be useful to you.

Rural loans

  HDFC Bank participates in a variety of Government Sponsored Programs to

support the lesser privileged strata of the society

  These schemes assist socially backward classes and help increase

employment generation.

  You can get a loan of amounts starting from as less as Rs 5,000 onwards!

  There are 3 schemes offered under government sponsored programs which

may be useful to you.

Retail Agri Loans

  Use your Kisan Gold Card to buy agricultural equipment and pay for

other agricultural related expenses.

  Credit limit of Kisan Gold Card will initially be set for 1 year and will be

renewed subsequently.

  Enjoy the modern convenience of anytime and anywhere banking!

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  Your Kisan Gold Card will broadly cover crop production requirements,

 postharvest and domestic consumption requirements and other equipment

related expenses.

 

You will get a Personal Accident Insurance Cover of Rs. 2 lakhs totallyFREE!

  You can enjoy daily withdrawal amounts with an upper limit of Rs. 15,000

at ATMs and Rs. 25,000 at merchant outlets.

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Investments

Wealth services

  Process that considers your risk profile, investment objectives and financial

goals

  Expert advice from our in-house research team

  Comprehensive Portfolio Tracker

  Monthly updates on new offers and investment concepts.

  Complimentary subscription to our monthly magazine - Investment Insight

A complete structured process:

  Identifying Objectives

  Establishing your Risk Profile

  Recommending Research Backed Solutions

  Seamless Execution

  Regular Reviews

Investments Products

Mutual Funds

  Purchase, redeem and switch funds from the comfort of your home or on-

the-go through NetBanking

Equities & Derivatives

  Create, view and maintain up to 5 different portfolios

  Monitor the real-time movement of up to 30 of your favorite stocks

IPO Application through ASBA

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  Invest in IPOs without moving funds from your Savings Account

   No more writing cheques or preparing demand drafts

Invest in Gold (Mudra Pure Gold Bar)

  24 Carat gold bars available in 2.5g, 5g, 8g, 10g, 20g and 50g

  Assay Certification and tamper-proof certicard packs

Invest in Silver (Mudra Silver Bar)

  Silver bars available in 50g & 100g

  Assay Certification and tamper-proof certicard packs

8% Savings Bonds

  100% risk free investment option

  Minimum investment of Rs. 1,000 and no maximum limit on investment

Sec 54 EC - Capital Gains Bonds

  Get tax exemption on capital gain

 

Maximum investment limit of up to Rs. 50 Lakhs

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Insurance

Life Insurance

HDFC Life Click 2 Protect Plan

  Secure your family‟s future in quick, easy steps 

  Get a life cover online upto 10 crore at nominal cost

  Enjoy tax benefits on premium upto 1 lakh

HDFC SL YoungStar Super Premium

  Save for your child's future in advance

  Chose from two great insurance cover options

  Create a customized plan depending on your child's needs

HDFC Loan Cover Term Assurance Plan

  Choice of taking the plan on a single life basis or a joint life (first claim)

 basis

 

Flexibility to choose the life cover to be paid to your family in case of yourunfortunate demise

HDFC Term Assurance Plan

  High cover at a very nominal cost

  Optional benefits to cover other eventualities

  Choice of premium payment options: regular premium or single one-time

 premium

HDFC Life SampoornSamridhi Insurance Plan

  Enhanced Cash and Cover option on maturity

  Lump sum payment to your family in case of your unfortunate demise

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HDFC Savings Assurance Plan

   No underwriting or extensive documentation required

  Tax benefits under Section 80C and 10(10D)* of Income Tax Act 1961

HDFC Single Premium Whole of Life Insurance Plan

  Whole of life plan aimed at providing long-term real growth of your money

  Convenience with no need to undergo any medical tests

  Single premium investment plan

HDFC SL ClassicAssure Insurance Plan

  Pay your premiums only for 7 years

  Choose your Sum Assured as per your need

HDFC SL Crest

  Invest and insure for your family at one go

  Reap benefits of highest NAV*

 

Be protected from market fluctuations yet earn from market crests  *With a minimum guaranteed NAV of Rs.15*. Only if highest NAV

Guarantee Fund is selected

HDFC SL New Money Back Plan

  Get a percentage of your Sum Assured as a cash payout

  Lump sum payment in case of unfortunate demise of the insured

  Large sum assured discount

HDFC SL ProGrowthMaximiser

  Select from a 3 great options of life insurance to invest in

  Invest in additional premium top ups as per your convenience

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HDFC Critical Care Plan

  Choose the Sum Assured rending from Rs. 2 lakh to Rs. 20 lakh according

to your needs

  Tax benefits are available under section 80D under Income Tax Act, 1961

Personal Accident Insurance Plan A

  Get Protection against hospital expenses, injuries, disability and death.

  Accident cover for yourself and your family under one insurance policy

  Get a comprehensive accident insurance for a sum Insured of Rs. 15  –   75

lakh

Personal Accident Insurance Plan B

  Range of Sum Insured available from Rs.2.5 lakh to Rs.15 lakh

  Extend the cover to your entire family including dependent parents and

dependent children in a single policy

  The individual stands protected for sickness in India and personal accident

cover worldwide.

Motor Insurance

Commercial Vehicle Insurance

  Ensure smooth business operations by covering risk arising out of

Accidental Loss or damage to your vehicle, third party liability and injury or

death involving your commercial vehicle

  Make use of over 1600+ authorized networks of garages across India for

cashless claims with this policy

  Emergency assistance services such as towing, ambulance, claims

assistance, are also provided

Private Car Insurance

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  Avail of HDFC ERGO's Private Cars Insurance at over 1600+ authorized

network of garages across India

  Get discounts based on age, professions and membership of the Automobile

Association  Get complete coverage of liability towards third parties along with owner-

driver accident cover.

Travel insurance

  Protect your travels against any loss, delay or damage.

  Instant Online Policy Issuance

  Choose from a range of policies for individuals ranging in the age group of 6

months to 70 years.

  Get cashless hospitalisation

   No medical / health check-up

  Emergency assistance will be available to you on call 24x7 if you need to

make international travel claims.

Home Insurance

  Protection of all your property and its contents priceless possessions and

 property in a single policy.

  Minimum documentation is required for this policy.

  Avail premium discounts of upto 15% for certain security features.

  A coverage option on burglary, theft and larceny is also offered.

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Modes of payments 

Pay bills online

With BillPay Online you can pay all your bills easily including:

  Electricity Bills

  Gas Bills

  Mobile Bills

  Landline and Internet Bills

  Insurance PremiumsPay directly from your bank account

  Avoid running out of credit

  Pay from the comfort of your home or office

  Pay directly from your bank account

  Avoid running out of credit

  Pay from the comfort of your home or office

Fund transfer

 RTGS fund transfer

An inter-bank funds transfer system that makes transactions in „real time‟ 

Benefits:

  Speed –  transfers in real-time

  Faster settlement cycles  –  no more inter-bank or clearing house settlement

issues

  Wider boundaries –  no geographical limitations within India

e-Monies Electronic Funds Transfer

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A nation- wide funds transfer system, supporting the transfer of funds from any

 bank branch to any other bank branch, anywhere in India.

Benefits of E-Monies National Electronic Funds Transfer is:

 

Easier –  no queues

  Faster –  no demand drafts, cheques or letters

  Convenient - handle Credit card payments from home

Visa CardPay

  Transfer your money to any Visa Credit card within India

  Make transfers from the comfort of your home or office

Benefits

  Make safe transfers anytime

  Transfer funds at a „negligible cost‟ 

Tax Payement

Online Tax Payment

Convenience at its best:

   No need to stand in long queues for payment of tax or write cheques or fill

challans in four copies

   No need to visit a collecting bank

  Enjoy extended deadlines for payments on cut off date

Process

  Fill in the details of the Challan and submit the transaction

  Enter your NetBanking Customer ID and Password

  Enter your account details to get your account debited online

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CHAPTER 5: CONCLUSION

The conventional scenario of banks is fast changing. Retail banking has

gained enormous momentum in the Indian banking sector during last five

years. There is vast opportunity as well as challenges for retail banking in

India. The changing portfolio of retail banking in India has many

dimensions. There is a need of constant innovation in retail banking. Banks

need to use retail segment as a growth trigger. There is a noticeable change

in the number and nature of products being tossed up along with the way in

which banking services are being offered. Banks requires product

development and differentiation, innovation and business process re-

engineering, micro planning, marketing, prudent pricing, customization,

technological upgradation and cross selling. The competitive advantage inretail banking that would help each bank to reach out and retain the

customer. The product differentiation will provide a bank with an edge over

competition. Efforts should be made to ensure customer delight, which is

essential in order to retain the customers in the open competitive business.

There should be operational transparency while dealing with the customers.

CRM must be used the make customer delight. The delivery channels

require comprehensive approach to ensure convenience and reliability. The

retail segment can survive only if it is competitive. These challenges demanda well planned and implemented strategy to cope with the changing business

environment. These challenges can be converted into opportunities by

enhancing the internal capabilities and providing the innovative products and

services fulfilling the diverse needs of the customers. The future growth of

the retail banking sector would be the outcome of the strategies of today.

Given the size advantages, diverse customer base and scope for future

expansion, there is need for evolving a systematic approach to retail

 banking. Advantage of this model is the flexibility at the back-end to adapt

to new online transaction processing models facilitated by electronic

commerce

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