A Study On Hdfc q1l3i

INTRODUCTION .  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.  Times Bank Limited (owned by Bennett, Coleman & Co./The Times Group) was merged with HDFC Bank Ltd., on February 26, 2000. This was the first merger of two private banks in India.  On May 23, 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total branches to more than 1,000.  HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (Visa Electron) and issues the Master Card Maestro debit card as well.

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Founder of HDFC Hasmukh Bhai parekh  In 1956 he began his financial affairs.  In

1992,

government

of

India

honored

him

with

Pa

Bhushan.

 In 1994 he abode the earth.

BOARD OF DIRECTORS Mr. Jagdish Kapoor , chairman of HDFC Bank

Mr. Aditya Puri, Managing director Keki Mistry, Managing Director

Mr. Harish Engineer, Executive directors

Mr. A Rajan, Country HeadOperations Mr. Rahul Bhagat, Vice president

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HISTORY of HDFC BANK : 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

2011 - HDFC Bank looking at 3G services to boost mobile banking share.

- The Housing Development Finance Corporation Limited (HDFC), one of the largest private sector banks in India, which had a network of 1,725 branches as at March 2010, opened 275 new branches in the current fiscal. The bank now has a total network of 2,000 branches spread across 1,000 cities. The bank also acquired Centurion Bank of Punjab in 2008, which adds around 404 branches to its network. 3|Page

- The Asian Banker magazine has declared that the strongest bank in Asia Pacific region is HDFC

- India's private banking major ,HDFC Bank has launched its new credit card offering called Infinia in direct competition with global credit card major ,American Express(Amex) .The new HDFC product is exclusively for the bank's high net worth and super rich clients in the country.

-Company has splits its Face value of Shares from Rs 10 to Rs 2

2012 - The third-largest US lender by assets, Citigroup Inc has sold its complete 9.85 per cent stake in Housing Development Finance Corporation Ltd (HDFC) for USD 1.9 billion.

- HDFC Bank which is a major Indian financial services company based in Mumbai stated that they have collaborated with Punjab Grains Procurement Corporation Ltd (PUNGRAIN) with an aim to make easy and faster payment to its agents who are dealing in agricultural products in about 350 mandis in Punjab. - HDFC Bank ties up with IOC to offer banking services in rural areas - Carlyle offloads entire stake in HDFC for $841 mn through bulk deals - HDFC Bank opens office in Abu Dhabi - HDFC Bank has launched its mobile banking application in Hindi on targeting about 560-million Hindispeaking population of India. - HDFC Bank opens 87 branches in Punjab, Haryana in a single-day.

2013 -HDFC Bank named Organisation of the Year at Skoch Financial Inclusion Awards -Times Card launched in association with HDFC Bank -Jet Airways and HDFC Bank hands to launch 'JetPrivilege -HDFC Bank World Debit Card' -Analysts vote HDFC Bank as Best Bank in Asia, Mr Aditya Puri, Best CEO -HDFC Bank launches rural Financial Literacy Initiative in Goa -HDFC Bank launches 11 mini branches in rural locations in Andhra Pradesh -HDFC Bank opens 18 rural branches to achieve 200th branch milestone in Haryana

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-HDFC Bank launches rural Financial Literacy Initiative in Gujarat -HDFC Bank in Forbes Asia's 'Fab 50' List for 7th year -HDFC Bank opens rural mini-branch in Alampur, achieves 250th branch milestone in Uttar Pradesh HDFC Bank launches rural Financial Literacy Initiative in Maharashtra -HDFC Bank's Sustainable Livelihood Initiative crosses milestone of 20 lakh households -HDFC Bank organises free Live Healthy camp in Uttar Pradesh -HDFC Bank opens 2 rural minibranches in Madhya Pradesh -HDFC Bank opens 7 rural mini-branches in Uttar Pradesh -HDFC Bank to hold national 'Blood Donation Drive' on December 6, 2013 -HDFC Bank achieves 300th branch milestone in Gujarat -Timespro launches training programme for graduates

2014 -HDFC Bank reaches 50th branch milestone in Himachal Pradesh -HDFC Bank Launches Rural Financial Literacy Initiative in Kanpur -HDFC Bank launches MoU with IIM Lucknow for online payment gateway -HDFC Bank organises Secure Banking workshop in Vishakapatnam -HDFC Bank opens 12 rural branches to achieve 50th branch milestone in Chhattisgarh -HDFC Bank launches cybercrime training programme for Delhi police under Secure Banking Initiative HDFC Bank sets GUINNESS WORLD RECORD -HDFC Bank achieves 200th branch milestone in Tamil Nadu -HDFC Bank launches 'Secure Banking' programme in Kerala -HDFC Bank opens branch at Dubai -HDFC Bank launches e-payment gateway for Ghaziabad Nagar Nigam -HDFC Bank launches cybercrime first responder training programme for Bangalore police under Secure Banking Initiative -HDFC Bank launches ForexPlus card for Haj & Umrah pilgrims -HDFC Bank opens 400th branch in Maharashtra -HDFC Bank opens first SLI branch in Varanasi -HDFC Bank to hold national 'Blood Donation Drive' -HDFC Bank launches 'Bank Aapki Muththi Mein'

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Merger and Acquisitions

Merger and Acquisitions :HDFC  Times Bank Ltd. ,February 26, 2000  Centurion Bank of Punjab Ltd.,. May 23, 2008. BACKGROUND-CBoP:-

•

Founded in 1994 (as Centurion bank)

•

It operated on a strong nationwide

•

394 branches and 452 ATMs in 180 locations across the country,

•

2005- Centurion Bank merge with Bank of Punjab and renamed as Centurion Bank of Punjab

•

2006 CBoP acquired Lord Krishna Bank.

•

As of March 31, 2008:

Loans outstanding Rs. 161,818.7 million Deposits outstanding Rs. 218,092.7 million

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BACKGROUND- HDFC Bank:Founded - August 1994 •

India’s largest private sector bank by market capitalization as of 25th September 2013, [152,815 (Rs.cr)]

•

Fifth largest bank in India by assets

•

India's largest housing finance company

•

As on August 2013: HDFC Bank has -754 branches -11,088 ATMs, in 1,891 cities in India

•

2000 -Times bank Limited was merged with HDFC Bank Ltd

•

2008- Centurion Bank of Punjab

Combined Entity…

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WHY HDFC BANK CHOSE CBoP:• Cultural fit between the organizations • The bank had a large nationwide network • Strong leadership positions in retail segment • Strong asset quality • High earning growth • Both the banks had a strong position in vehicle financing • Attractive route to supplement HDFC Bank’s organic growth • 7,500 talented employee

DEAL SIZE AND STRUCTURE •

CBoP was valued at Rs 9510 crores

•

All stock deal (no cash settlement)

•

HDFC Bank paid Rs 9510 crores in shares for absorbing CBoP

•

Swap ratio was fixed at 1:29 (1 share of Rs.10 each of HDFC Bank for every 29 shares of Rs.1 each held in CBoP)

•

No single lay off of employee.

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THE COMPANY PROFILE: HDFC BANK LTD. The Housing Development Finance Corporation Limited (HDFC) 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, as part of RBI’s liberalization of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of ‘HDFC Bank Limited’, with its ed office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995.

Capital Structure  As on March 31, 2015 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

CBoP & TIMES BANK AMALGAMATION  On May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC Bank was formally approved by Reserve Bank of India to complete the statutory and regulatory approval process. As per the scheme of amalgamation, shareholders of CBoP received 1 share of HDFC Bank for every 29 shares of CBoP. The amalgamation added significant value to HDFC Bank in of increased branch network, geographic reach, and customer base, and a bigger pool of skilled manpower.

Products Offered 

Valuedraw - Working Capital Facilities from Rs. 10 Lacs to Rs. 25 lacs against wide range of collaterals adding more value to Business



Elitedraw - Take your business to Elite heights with our Working Capital Solutions for from Rs. 25 lac onwards against wide range of collaterals.

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Management Information system(MIS) MANAGEMENT INFORMATION SYSTEM A Management information system (MIS) is a subset of the overall internal control of a business covering the application of people, documents, technologies, and procedures by management ants to solve business problems such as costing a product, service or a business-wide strategy.

MIS should be designed to achieve the following goals:  Enhance communication among employees.  Deliver complex material throughout the institution.  Provide an objective system for recording and aggregating information.  Reduce expenses related to labor-intensive manual activities.  the organization's strategic goals and direction ORGANISATIONAL RESOURCES Application Software:1. General Application Software :  Microsoft Office  NOD32 Anti-Virus  Adobe Reader  Database management software  Integrated software : CLARIS , LOTUS 2 . Specific Application Software :  HR software called “ ATLAS “  ing software called “TALLY”  Marketing software called “ CALLPAN “ 10 | P a g e

 Financial software called “SPSS”

Product & services: Travelers Cheques  credit card  home loan  personal loan  Foreign Currency Cash  Foreign Currency Demand Drafts  Cheque Deposits  Remittances  Trade Services  Mutual funds  Insurance

 Travelers Cheques : Travelers Cheques are a safe and easy way to protect your money when you travel. You can en cash 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.

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SWOT analysis of HDFC bank Meanings: - SWOT stands for 'Strengths, Weaknesses, Opportunities and Threats'. This is a method of analysis of the environment and the company's standing in it. Definition: SWOT stands for 'Strengths, Weaknesses, Opportunities and Threats'. This is a method of analysis of the environment and the company's standing in it.



Strengths: characteristics of the business or project that give it an advantage over others.



Weaknesses: characteristics that place the business or project at a disadvantage relative to others.



Opportunities: elements that the project could exploit to its advantage.



Threats: elements in the environment that could cause trouble for the business or project

HDFC GOALS  Develop close relationships with individual households.  Maintain our position as the premier housing finance institution in the country.  Transform ideas into viable and creative solutions.  To grow through diversification by gaining leverage from our existing client base. To nurture the values and ethos of Brand HDFC through all its Subsidiaries and Associate Companies.

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SWOT analysis Strengths 

HDFC bank is the second largest private banking sector in India having 2,201 Branches and 7,110 ATM’s



HDFC bank is located in 1,174 cities in India and has more than 800 locations to serve customers through Telephone banking.



The bank’s ATM card is compatible with all domestic and international Visa/Master card, Visa Electron/ Maestro, Plus/cirus and American Express. This is one reason for HDFC cards to be the most preferred card for shopping and online transactions.



HDFC bank has the high degree of customer satisfaction when compared to other private banks.



The attrition rate in HDFC is low and it is one of the best places to work in private banking sector.



HDFC has lots of awards and recognition, it has received ‘Best Bank’ award from various financial rating institutions like Dun and Bradstreet, Financial express, Euromoney awards for excellence, Finance Asia country awards etc HDFC has good financial advisors in of guiding customers towards right investments

Weakness 

HDFC bank doesn’t have strong presence in Rural areas, where as ICICI bank its direct competitor is expanding in rural market.



HDFC cannot enjoy first mover advantage in rural areas. Rural people are hard core loyals in of banking services.

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

HDFC lacks in aggressive marketing strategies like ICICI.



The bank focuses mostly on high end clients.



Some of the bank’s product categories lack in performance and doesn’t have reach in the market



The share prices of HDFC are often fluctuating causing uncertainty for the Investors.

Opportunities 

HDFC bank has better asset quality parameters over government banks, hence the profit growth is likely to increase



The companies in large and SME are growing at very fast pace. HDFC has good reputation in of maintaining corporate salary s



HDFC bank has improved it’s bad debts portfolio and the recovery of bad debts are high when compared to government banks



HDFC has very good opportunities in abroad



Greater scope for acquisitions and strategic alliances due to strong financial Position.

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Threats 

HDFC’s nonperforming assets (NPA) increased from 0.18 % to 0.20%.



Though it is a slight variation it’s not a good sign for the financial health of the bank.



The non-banking financial companies and new age banks are increasing in India.



The HDFC is not able to expand its market share as ICICI imposes major threat.



The government banks are trying to modernize to compete with private banks RBI has opened up to 74% for foreign banks to invest in Indian market

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SWOT ANAYLSIS OF HDFC BANK

HELPFUL

HARMFUL

STRENGTHS       

2nd largest private sector bank Approx. 3400 branches and 11250 ATMs across country Employee friendly organization-lower attrition rates as compared to other competitors Customer friendly approach Sound financial advisors for investment clients Adoption of latest technology for bank softwares and net banking facilities Low minimum balance in savings

WEAKNESSES     

OPPORTUNITIES      

Scope in rural market Steady customer oriented approach to drive business in future Corporate s, especially of the growing SME sector Operations abroad – scope in countries like Bangladesh, UAE and Sri Lanka Greater scope for acquisitions and strategic alliances due to strong financial position Improvement in bad debt recovery strategies

Low presence in rural areas as compared to most of its top competitors Lack of aggressive marketing strategies in comparison to other banks Heavy focus on mid and high level clients Not all the verticals of the bank are performing successfully Unstable share prices

THREATS      

Increasing percentage if NonPerforming assets of the company Major competition threat from banks like ICICI, HSBC, AXIS and SBI Increasing number of NBFCs and new age banks Attractive interest rates provided by PSU banks in comparison to private banks Shifting consumer base from private players to PSU due to modernization of PSUs RBI has opened up to 74% for foreign banks to invest in Indian market

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SWOT analysis aims to identify the key internal and external factors seen as important to achieving an objective. SWOT analysis groups key pieces of information into two main categories: 1. internal factors – the strengths and weaknesses internal to the organization 2. external factors – the opportunities and threats presented by the environment external to the organization

 Internal Analysis:

The internal analysis is a comprehensive evaluation of the internal environment's potential strengths and weaknesses. Factors should be evaluated across the organization in areas such as: o Company culture o Company image o Organizational structure o Key staff o Access to natural resources o Position on the experience curve o Operational efficiency o Operational capacity o Brand awareness o Market share o Financial resources o Exclusive contracts o Patents and trade secrets



The SWOT analysis summarizes the internal factors of the firm as a list of strengths and weaknesses.

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 External Analysis 

An opportunity is the chance to introduce a new product or service that can generate superior returns. Opportunities can arise when changes occur in the external environment. Many of these changes can be perceived as threats to the market position of existing products and may necessitate a change in product specifications or the development of new products in order for the firm to remain competitive. Changes in the external environment may be related to:

o Customers o Competitors o Market trends o Suppliers o Social changes o New technology o Economic environment o Political and regulatory environment

The last four items in the above list are macro- environmental variables, and are addressed in a PEST analysis.



The SWOT analysis summarizes the external environmental factors as a list of opportunities and threats

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ENVIRONMENTAL ANALYSIS

Business environment includes set of conditions or situation that affects business activities or decision making. These conditions are broadly classified into internal environment and external environment.

THE EXTERNAL ENVIRONMENT ANALYSIS:External environment include factors which are outside the control of the business organization but it provide opportunities or pose threats. External environment is further classified into two categories micro environment and macro environment.

1) Political Factor Government and RBI policies affect the banking sector. Sometimes looking into the political advantage of a particular party, the Government declares some measures to their benefits like waiver of short-term agricultural loans, to attract the farmer’s votes. By doing so the profits of the bank get affected.

FDI move to increase the limits to 49 percent from 26 percent. The Union Budget 2009-10 extended the debt waiver scheme by six more months for farmers owing more than 2 hectare of land The Union Budget 2008-09 allowed these farmers 25% rebate on loan if they repay 75%of their overdue within stipulated period of 30th June 2009.

2) Economic Factor

Cash Reserve Ratio (CRR) reduced by 0.25% to 4.5% of net demand and time liabilities (NDTL) to potentially inject primary liquidity of Rs. 170 billion; token reduction in lending rates expected, given comfortable liquidity position and the recent revisions in deposit rates and lending rates for certain products undertaken by some Banks. Benchmark Repo rate maintained at 8.0%; Reverse Repo and Marginal Standing Facility

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(MSF) stand unchanged at 7.0% and 9.0%, respectively. Bank Rate also maintained at 9.0%. Following a 1% reduction in July 2012, Statutory Liquidity Ratio (SLR) kept unchanged at 23% of NDTL. The primary focus of monetary policy remains inflation control and anchoring of inflation expectations, despite increasing risks to economic growth. The Reserve Bank of India (RBI) highlighted that inflationary pressures and risks related to fiscal deficit and current deficit constrain it from providing a stronger monetary policy response to boost economic growth. As policy measures to stimulate growth materialize, monetary policy to reinforce the positive impact of such actions while retaining a focus on managing inflation.

Guidance provided that liquidity management by the RBI would ensure adequate credit flows to the productive sectors of the economy and appropriate responses to shocks brought on by external developments.

3) Social Factor

HDFC announced its plans to make an entry into education sector. The group plans to focus on small towns wherein it would either set up schools or take over weak performing boarding schools. According to McKinsey Global Institute’s Bird of Gold report, the discretionary spending on education is set to increase from 5% in 2005 to 6% in 2015. HDFC will foray into this sector through a separate subsidiary. It is widely believed that many schools are planning to set up model, which is profitable and scalable, as operating under trusts makes it difficult to segregate profits. As a result, HDFC could look to adopt those schools that are open to the ‘takeover model’. HDFC already has an educational loan unit – Credila Financial Services – in which it owns 62.3% stake. Credila plans to boosts the distribution network and customer base of HDFC Bank in order to expand and also lower the cost of funds. The group’s likely entry into education sector could be beneficial in the long run.

HDFC Bank ,is partnering with the city’s municipal authorities to educate people about the danger posed by plastic bags to the environment, and to offer recycle paper bags instead.The bank reinforced the Kolkata Municipal Corporation(KMC) intiated anti-plastic awarness drive by distributing recycled and eco-friendly paper bags to retailers and customers across nine 20 | P a g e

markets in the city.“Encourage citizens to use environment friendly and cost effective paper bags as the best substitute.

4) Technological Factor:-

Productivity ratio of HDFC is increasing significantly over the years. Number of employees of the group increased to 1,607 in FY2011, as compared to 797 in FY2010 and 727 in FY2009. While, profit per employee increased significantly to $491,900, as compared to $117,500 and $7,500 in FY2010 and FY2009 respectively. istration cost per asset ratio decline to 0.30% in FY2011, as compared to 0.49 in FY2010 and 0.76 in FY2009. Similarly, cost to income ratio improved to 7.7% in FY2011 from 13.8% and 30.9% in FY2010 and FY2009 respectively. Improving productivity would likely enhance the group’s profit margin.

ATM The latest developments in of technology in computer and telecommunication have encouraged the bankers to change the concept of branch banking to anywhere banking. Credit card facility has encouraged an era of cashless society.

Today MasterCard and Visa card are the two most popular cards used world over. Smartcards or debit cards to be used for making payments. These are also called as electronic purse Today banks are also using SMS and Internet as major tool of promotions and giving great utility to its customers. For example SMS functions through simple text messages sent from your mobile. CORE BANKING SOLUTIONS -It is the buzzword today and every bank is trying to adopt it is the centralize banking platform through which a bank can control its entire operation the adoption of core banking solution will help bank to roll out new product and services

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THE INTERNAL ENVIRONMENT ANALYSIS

Internal environment consists of factors which are within the control of the organization. Business ethics, Objective of the firm, Value system, Management structure, Physical assets, Technological resources, financial resources, Stakeholders, Human resources etc. are part of the internal environment of business.

1)VISION AND MISSION HDFC BANK VISION HDFC Bank is a young and dynamic bank, with a youthful and enthusiastic team determined to accomplish the vision of becoming a world-class Indian bank. MISSION HDFC mission is to be “World Class Indian Bank", benchmarking ourselves against international standards and best practices in of product offerings, technology, service levels, risk management and audit & compliance. The objective is 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. They are committed to do this while ensuring the highest levels of ethical standards, professional integrity, corporate governance and regulatory compliance.

Business strategy emphasizes the following : Increase the 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 the technology platform and open scalable systems to deliver more products to more customers and to control operating costs.

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Maintain the 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. Continue to develop products and services that reduce the cost of funds. Focus on high earnings growth with low volatility.

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Benefits of SWOT analysis The main advantages of conducting a SWOT analysis is that it has little or no cost - anyone who understands your business can perform a SWOT analysis. You can also use a SWOT analysis when you don't have much time to address a complex situation. This means that you can take steps towards improving your business without the expense of an external consultant orbusiness adviser. Another advantage of a SWOT analysis is that it concentrates on the most important factors affecting your business. Using a SWOT, you can: 

understand your business better



address weaknesses



deter threats



capitalise on opportunities



take advantage of your strengths



develop business goals and strategies for achieving them.

Limitations of SWOT analysis When you are conducting a SWOT analysis, you should keep in mind that it is only one stage of the business planning process. For complex issues, you will usually need to conduct more in-depth research and analysis to make decisions. Keep in mind that a SWOT analysis only covers issues that can definitely be considered a strength, weakness, opportunity or threat. Because of this, it's difficult to address uncertain or two-sided factors, such as factors that could either be a strength or a weakness or both, with a SWOT analysis (e.g. you might have a prominent location, but the lease may be expensive).

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Dividend strategy: A firm must also decide on dividend strategy. A firm may follow either liberal dividend or conservative dividend strategy. Other firm that adopt conservative dividend strategy and may retain a manjor part of profits as reserves,which can be utilizes to declare bonus shares, or for expansion of tha firm

Dividends Declared

Announcement Date

Effective Date

Dividend Date

Dividend(%)

Remarks

23/04/2015

02/07/2015

Final

400%

Rs.8.0000 per share(400%)Dividend

22/04/2014

05/06/2014

Final

342.5%

Rs.6.8500 per share(342.5%)Dividend

23/04/2013

13/06/2013

Final

275%

Rs.5.5000 per share(275%)Dividend

18/04/2012

28/06/2012

Final

215%

18/04/2011

02/06/2011

Final

165%

26/04/2010

10/06/2010

Final

120%

23/04/2009

22/06/2009

Final

100%

10/04/2008

29/04/2008

Final

85%

24/04/2007

17/05/2007

Final

70%

AGM

17/04/2006

11/05/2006

Final

55%

AGM

13/04/2005

26/05/2005

Final

45%

AGM

01/04/2004

06/05/2004

Final

35%

AGM

01/04/2003

30/04/2003

Final

30%

AGM

02/04/2002

07/05/2002

Final

25%

AGM

04/04/2001

20/04/2001

Final

20%

19/04/2000

Final

16%

21/04/1999

Final

13%

14/05/1998

Final

10%

20/05/1997

Final

8%

AGM & Dividend

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 Working Capital Finance  HDFC Bank offers you a unique range of working capital facilities at your doorstep. We offer affordable, convenient financial solutions which are of paramount importance in running an efficient enterprise.

 You can choose from the range of customized working capital loans for smooth business operations.

 Types of Working Capital  Cash Credit / Overdraft  Term Loan (TL)  Letter of Credit (LC)  Bank Guarantee (BG)  Packing Credit (PC)  Post Shipment Finance 

Bill Discounting

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 Personal Loans : The procedure of personal loan is simple, documentation is minimal and approval is quick.  Foreign Currency Cash : Foreign Currency Cash is a convenient way of meeting personal expenses along your journey, paying for taxis / internal travel, food expenses etc.  Foreign Currency Demand Drafts : Demand Drafts are issued in seven currencies like United States Dollars(USD), Great Britain Pounds (GBP), EURO, Japanese Yen(JPY), Australian Dollars (AUD), Canadian dollars (CAD) and New Zealand Dollars (NZD).  Foreign Currency Cheque Deposits: We can directly deposit our foreign currency cheques in to our saving or current .  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  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

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HDFC bank’s P&L are as Follows: Profit & Loss - HDFC Bank Ltd.Rs (in Crores)

Mar'15

Mar'14

Mar'13

Mar'12

Mar'11

12Months

12Months

12Months

12Months

12Months

48469.90

41135.53

35064.87

27286.35

19928.21

.00

.00

.00

.00

.00

48469.90

41135.53

35064.87

27286.35

19928.21

0

0

0

0

0

57466.26

49055.18

41917.50

32530.05

24263.36

Manufacturing Expenses

.00

.00

.00

.00

.00

Material Consumed

.00

.00

.00

.00

.00

Personal Expenses

4750.96

4178.98

3965.38

3399.91

2836.04

.00

.00

.00

.00

.00

8580.29

7191.61

6619.07

4647.64

3819.46

.00

.00

.00

.00

.00

2075.01

1587.27

1676.40

1436.70

1906.11

15406.26

12957.86

12260.85

9484.24

8561.61

INCOME: Sales Turnover Excise Duty NET SALES Other Income TOTAL INCOME EXPENDITURE:

Selling Expenses istrative Expenses Expenses Capitalised Provisions Made TOTAL EXPENDITURE

28 | P a g e

Operating Profit

9064.42

7112.04

5226.67

4249.23

3887.62

18060.78

15031.68

12079.29

9492.93

8222.77

656.30

671.61

651.67

542.51

497.41

.00

.00

.00

.00

.00

EBIT

17404.48

14360.08

11427.63

8950.41

7725.37

Interest

26074.24

22652.90

19253.75

14989.58

9385.08

EBT

15329.47

12772.81

9751.22

7513.71

5819.26

5113.55

4294.43

3024.94

2346.62

1892.86

10215.92

8478.38

6726.28

5167.09

3926.40

Non Recurring Items

.00

.00

.00

.00

.00

Other Non Cash Adjustments

.00

.00

.00

.00

.00

Other Adjustments

.00

.00

.00

.00

.00

10215.92

8478.38

6726.28

5167.09

3926.40

.00

.00

.00

.00

.00

1596.99

1364.06

1086.60

845.38

643.09

318.56

284.29

228.33

180.12

138.23

Shares in Issue (Lakhs)

25064.95

23990.50

23794.19

23466.88

4652.26

EPS - Annualised (Rs)

40.76

35.34

28.27

22.02

84.40

EBITDA Depreciation Other Write-offs

Taxes Profit and Loss for the Year

REPORTED PAT KEY ITEMS Preference Dividend Equity Dividend Equity Dividend (%)

29 | P a g e

Cash Flow Rs (in Crores) Particulars

Mar'15

Mar'14

Mar'13

Mar'12

Mar'11

Profit Before Tax

15328.72 12772.05

9750.63

7513.17

5818.66

Net Cash Flow from Operating Activity

15862.27

8363.60 -1868.78 11355.61

-375.83

Net Cash Used in Investing Activity

-1944.27 -1591.26

-858.88

-686.85 -1122.74

Net Cash Used in Financing Activity

14543.44

5562.98

9065.84

3286.19

1227.99

Net Inc/Dec In Cash and Cash Equivalent

-3252.19 12303.47

6342.44

-8731.11

-273.56

Cash and Cash Equivalent Beginning of the Year

39583.64 27280.17 20937.73 29668.83 29942.40

Cash and Cash Equivalent End of the Year

36331.45 39583.64 27280.17 20937.73 29668.83

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HDFC bank’s Balance sheet are as follows:BalanceSheet - HDFC Bank Ltd. Rs (in Crores) Particulars

Mar'15

Mar'14

12 Months

12 Months

501.30

479.81

475.88

469.64

468.14

Reserves & Surplus

61508.12

42998.82

35738.26

29455.04

24911.13

Net Worth

62009.42

43478.63

36214.15

29924.68

25379.27

Secured Loan

45213.56

39438.99

33006.60

23846.51

14394.06

Unsecured Loan

450795.64

367337.48

296246.98 246706.45

208586.41

TOTAL LIABILITIES

558018.62

450255.10

365467.73 300477.63

248359.73

3121.73

2939.92

2703.08

2347.19

2170.65

.00

.00

.00

.00

.00

3121.73

2939.92

2703.08

2347.19

2170.65

.00

.00

.00

.00

.00

166459.95

120951.07

111613.60

97482.91

70929.37

Inventories

.00

.00

.00

.00

.00

Sundry Debtors

.00

.00

.00

.00

.00

Liabilities Share Capital

Mar'13

Mar'12

Mar'11

12 Months 12 Months

12 Months

Assets Gross Block (-) Acc. Depreciation Net Block Capital Work in Progress Investments

31 | P a g e

Cash and Bank

36331.45

39583.64

Loans and Advances

384589.94

Total Current Assets

20937.73

29668.83

328124.87

258735.05 217141.67

174583.74

420921.39

367708.51

286015.22 238079.40

204252.58

32484.46

41344.40

34864.17

37431.87

28992.86

.00

.00

.00

.00

.00

32484.46

41344.40

34864.17

37431.87

28992.86

NET CURRENT ASSETS

388436.94

326364.11

251151.05 200647.53

175259.72

Misc. Expenses

.00

.00

558018.62

450255.10

Current Liabilities Provisions Total Current Liabilities

TOTAL ASSETS(A+B+C+D+E)

27280.17

.00

.00

.00

365467.73 300477.63

248359.73

32 | P a g e

Quarterly - HDFC Bank Ltd.

Rs (in Crores)

Jun'15

Mar'15

Dec'14

Sep'14

Jun'14

14041.06

13006.37

12395.83

11847.63

11220.08

Other Income

2461.91

2563.76

2534.91

2047.10

1850.57

Total Income

16502.97

15570.13

14930.74

13894.73

13070.65

Stock Adjustments

.00

.00

.00

.00

.00

Raw Material Consumed

.00

.00

.00

.00

.00

Power and Fuel

.00

.00

.00

.00

.00

1359.01

1325.56

1132.53

1166.94

1125.93

istration and Selling Expenses

.00

.00

.00

.00

.00

Research and Development Expenses

.00

.00

.00

.00

.00

Expenses Capitalised

.00

.00

.00

.00

.00

Other Expenses

2641.78

2529.40

2323.75

2330.96

2052.48

Provisions Made

727.99

576.65

560.43

455.89

482.78

TOTAL EXPENSES

4728.78

4431.61

4016.71

3953.79

3661.19

Operating Profit

9312.28

8574.76

8379.12

7893.84

7558.89

11774.19

11138.52

10914.03

9940.94

9409.46

.00

.00

.00

.00

.00

12502.18

11715.17

11474.46

10396.83

9892.24

INCOME

Net Sales Turnover

EXPENSES

Employee Expenses

EBITDA

Depreciation

EBIT

33 | P a g e

Interest

7652.29

6993.22

6695.90

6336.64

6048.47

EBT

4849.89

4721.95

4778.56

4060.19

3843.77

Taxes

1426.18

1338.39

1423.62

1222.84

1127.95

Profit and Loss for the Year

3423.71

3383.56

3354.94

2837.35

2715.82

Extraordinary Items

.00

.00

.00

.00

.00

Prior Year Adjustment

.00

.00

.00

.00

.00

Other Adjustment

-727.99

-576.65

-560.43

-455.89

-482.78

Reported PAT

2695.72

2806.91

2794.51

2381.46

2233.04

.00

.00

.00

.00

.00

502.29

501.30

483.48

482.86

481.54

Reserves and Surplus

.00

.00

.00

.00

.00

Equity Dividend Rate

.00

.00

.00

.00

.00

14952.37

14902.75

14671.87

14641.01

14574.75

59.60

59.40

60.70

60.60

60.50

Government Share

.00

.00

.00

.00

.00

Capital Adequacy Ratio

.00

.00

.00

.00

.00

10.75

11.19

11.56

9.86

9.27

KEY ITEMS

Reserves Written Back

Equity Capital

Agg. Non-Promoter Share(Lakhs)

Agg. Non-Promoter Holding(%)

EPS(Rs.)

34 | P a g e

Shareholding Pattern - HDFC Bank Ltd.

Holder's Name

No of Shares

% Share Holding

Promoters

543216100

21.63%

Foreign Institutions

815080613

32.45%

General Public

211501179

8.42%

Other Companies

197544155

7.87%

NBanksMutual Funds

186955308

7.44%

Financial Institutions

75038310

2.99%

Foreign NRI

7322412

0.29%

Central Govt

1742903

0.07%

Others

42505

0%

Foreign Ocb

10075

0%

35 | P a g e

Financial Highlights:2005-2006

2006-2007

2007-2008

Interest income

4,547.26

7,055.35

10,530.43

Interest expense

1,929.50

3,179.45

4,887.12

Net interest income

2,617.76

3,875.90

5,643.31

Other income

1,237.08

1,679.21

2,495.94

Net revenues

3,854.84

5,555.11

8,139.25

Operating costs

2,116.82

2,975.08

4,311.03

Operating result

1,738.02

2,580.03

3,828.22

Provisions and contingencies

484.51

941.28

1,547.59

Loan loss provisions

484.21

877.13

1,278.84

0.30

64.15

268.75

1,253.51

1,638.75

2,280.63

Provision for taxation

382.73

497.30

690.45

Profit after tax

870.78

1,141.45

1,590.18

55,796.82

68,297.94

100,768.60

Subordinated debt

1,702.00

3,282.60

3,249.10

Stockholders’ equity

5,299.53

6,433.15

11,497.23

Working funds

73,506.39

91,235.61

133,176.60

Loans

35,061.26

46,944.78

63,426.90

Investments

28,393.96

30,564.80

49,393.54

5.58

7.26

9.24

17.47%

19.40%

16.05%

Tier 1 capital ratio

8.55%

8.58%

10.30%

Total capital ratio

11.41%

13.08%

13.60%

1.10

1.40

1.70

22.55%

22.92%

22.17%

33.85

40.28

64.88

154.85

190.83

266.25

27.74

26.29

28.80

Others Profit before tax

Funds : Deposits

Key Ratios : Earnings per share (`) * Return on average networth

Dividend per share (`) * Dividend payout ratio Book value per share as at March 31 (`) * Market price per share as at March 31 (`) ** Price to earnings ratio ` 1 Crore = ` 10 Million

36 | P a g e

2008-2009

2009-2010

2010-2011

2012-2013

2013-2014

20,380.77 9,385.08

20112012 27,874.19 14,989.58

16,584.01 8,911.10

16,467.92 7,786.30

7,672.91

2014-2015

35,064.87 19,253.75

41,135.53 22,652.90

48,469.91 26,074.23

8,681.62

10,995.69

12,884.61

15,811.12

18,482.63

22,395.68

3,700.65

4,573.63

4,945.23

5,783.62

6,852.62

7,919.64

8,996.34

11,373.56

13,255.25

15,940.92

18,668.23

22,663.74

26,402.28

31,392.02

5,950.54

6,475.71

7,780.02

9,277.64

11,236.11

12,042.20

13,987.55

5,423.02

6,779.54

8,160.90

9,390.59

11,427.63

14,360.08

17,404.47

2,123.78

2,490.40

2,342.24

1,877.44

1,677.01

1,588.03

2,075.75

1,970.35

2,288.74

1,198.55

1,091.77

1,234.21

1,632.58

1,723.58

153.43

201.66

1,143.69

785.67

442.80

(44.56)

352.17

3,299.24

4,289.14

5,818.66

7,513.15

9,750.62

12,772.05

15,328.72

1,054.31

1,340.44

1,892.26

2,346.08

3,024.34

4,293.67

5,112.80

2,244.93

2,948.70

3,926.40

5,167.07

6,726.28

8,478.38

10,215.92

142,811.58

167,404.44

208,586.41

296,246.98

367,337.48

450,795.65

8,738.58 14,646.33

6,353.10 21,519.58

7,393.05 25,376.35

246,706.4 5 11,105.65 29,924.37

16,586.75 36,214.15

16,643.05 43,478.63

16,254.90 62,009.42

183,270.77

222,458.57

277,352.59

400,331.90

491,599.50

590,503.08

98,883.05

125,830.59

159,982.67

239,720.64

303,000.27

365,495.04

58,817.55

58,607.62

70,929.37

337,909.5 0 195,420.0 3 97,482.91

111,613.60

120,951.07

166,459.96

10.57

13.51

17.00

22.11

28.49

35.47

42.15

16.12% 10.58%

16.80% 13.26%

16.52% 12.23%

18.37% 11.60%

20.07% 11.08%

20.88% 11.77%

20.36% 13.66%

15.69%

17.44%

16.22%

16.52%

16.80%

16.07%

16.79%

2.00

2.40

3.30

4.30

5.50

6.85

8.00

22.17%

21.72%

22.72%

22.70%

22.77%

22.68%

23.62%

68.86

94.02

109.09

127.52

152.20

181.23

247.39

194.68

386.70

469.17

519.85

625.35

748.80

1,022.70

18.42

28.62

27.59

23.51

21.95

21.11

24.26

37 | P a g e

CONCLUSION:-

 “Success is achieved by those who try where there is nothing to lose by trying and a great deal to gain if successful, by all means try”

 Such results and conclusions are definitely helpful in order to achieve goals of the organization in this modern business world.  There is a lot to be said for valuing a company, it is no easy task. I hope that I have helped shed some light on this topic and that you will use this information to make educated investment decision.

38 | P a g e

BIBLIOGRAPHY Websites: http://www.google.com/  www.hdfcbank.com  www.wikipedia.org  http://economictimes.indiatimes.com/hdfc-bankltd/profitandlose/companyid-9195.cms  https://en.wikipedia.org/wiki/HDFC_Bank  Annual Report of HDFC Bank 2014-15 From HDFC bank.com

39 | P a g e