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Wholesale Banking

HDFC Bank is one of India's leading private banks that was established in 1994. It has over 5,600 branches across India. The bank has three key business segments: wholesale banking, retail banking, and treasury. Wholesale banking caters to large corporations and provides various commercial banking services. Retail banking offers a range of financial products to individuals and small businesses. Treasury manages the bank's investments and meets statutory reserve requirements. HDFC Bank aims to be a world-class Indian bank and the preferred provider of banking services through operational excellence, customer focus, and people-centricity.

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116 views

Wholesale Banking

HDFC Bank is one of India's leading private banks that was established in 1994. It has over 5,600 branches across India. The bank has three key business segments: wholesale banking, retail banking, and treasury. Wholesale banking caters to large corporations and provides various commercial banking services. Retail banking offers a range of financial products to individuals and small businesses. Treasury manages the bank's investments and meets statutory reserve requirements. HDFC Bank aims to be a world-class Indian bank and the preferred provider of banking services through operational excellence, customer focus, and people-centricity.

Uploaded by

Srinath Smart
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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INTRODUCTION

HDFC Bank is one of India’s leading private banks and was among the first to receive
approval from the Reserve Bank of India (RBI) to set up a private sector bank in 1994.
Today, HDFC Bank has a banking network of 5,608 branches and 16,087 ATM's in 2,902
cities/towns.
CEO: Sashidhar Jagdishan

Core Business

HDFC Bank caters to a wide range of banking services covering commercial and investment banking on
the wholesale side and transactional / branch banking on the retail side. The bank has three key business
segments:
 Wholesale Banking
 Retail Banking
 Treasury

Wholesale Banking

 The Bank's target market is primarily large, blue-chip


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

This business focuses on institutional customers such as

Large corporates including MNCs

 Government bodies
 Emerging corporates
 Business banking/SMEs
 Infrastructure finance group

Products and Services

 Working capital facilities


 Term lending
 Project finance
 Debt capital markets
 Mergers and acquisitions
 Trade credit
 Supply chain financing
 Forex and derivatives
 Cash management services
 Wholesale deposits
 Letters of credit and guarantees
 Custodial services
 Correspondent banking

Treasury

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

 The Treasury is the custodian of the Bank’s cash/liquid assets


and manages its investments in securities and other market
instruments. It manages the liquidity and
interest rate risks on the balance sheet and is also responsible for
meeting statutory reserve requirements.

Products and Services

 Foreign exchange & derivatives


 Solutions on hedging strategies
 Trade solutions - domestic and cross border
 Bullion
 Debt capital markets
 Equities
 Research - Reports & commentary on markets and currencies
 Asset liability management Statutory reserve

Retail Banking

 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. 

 The HDFC Bank Preferred program for high net worth


individuals, the HDFC Bank Plus and the Investment Advisory
Services programs have been designed keeping in mind needs of
customers who seek distinct financial solutions, information and
advice on various investment avenues. The Bank also has a wide
array of retail loan products including Auto Loans, Loans against
marketable securities, Personal Loans and Loans for Two-
wheelers. It is also a leading provider of Depository Participant
(DP) services for retail customers, providing customers the
facility to hold their investments in electronic form.

 HDFC Bank was the first bank in India to launch an


International Debit Card in association with VISA (VISA
Electron) and issues the MasterCard Maestro debit card as well.
The Bank launched its credit card business in late 2001. By
March 2015, the bank had a total card base (debit and credit
cards) of over 25 million. The Bank is also one of the leading
players in the "merchant acquiring" business with over 235,000
Point-of-sale (POS) terminals for debit / credit cards acceptance
at merchant establishments. The Bank is well positioned as a
leader in various net based B2C opportunities including a wide
range of internet banking services for Fixed Deposits, Loans,
Bill Payments, etc.

This business caters to

 Individual borrowers
 Salaried & professional borrowers
 Micro & medium sized businesses
 Extremely small businesses like kirana stores
 Self-help groups (SHGs)
 Non-resident Indians (NRIs)

Products and Services


 Auto loans
 Credit and debit cards
 Personal loans
 Home loans
 Gold loans
 Mortgages
 Commercial vehicles finance
 Retail business banking
 Savings account
 Current account
 Fixed and recurring deposits
 Corporate salary accounts
 Construction equipment finance
 Agri and tractor loans
 SHG loans
 Kisan Gold Card
 Distribution of mutual funds, life, general and health insurance
 Healthcare finance
 Offshore loans to NRIs
 NRI deposits
 Small-ticket working capital loans
 Business loans
 Two-wheeler loans
 Loans against securities

VISION, VALUES AND MISSION


HDFC Bank’s mission is to be a world class Indian bank. We have a two-fold objective: first,
to be the preferred provider of banking services for target retail and wholesale customer segments.
The second objective is to achieve healthy growth in profitability, consistent with the bank’s risk
appetite.

The bank is committed to maintaining the highest level of ethical standards, professional
integrity, corporate governance and regulatory compliance.

HDFC Bank’s business philosophy is based on five core values:

1. Operational Excellence
2. Customer Focus
3. Product Leadership
4. People
5. Sustainability

Awards
Corporate Governance Rating

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

Credit Rating

HDFC Bank has its deposit programmes rated by two rating agencies - Credit Analysis & Research
Limited. (CARE) and Fitch Ratings India Private Limited. The bank's Fixed Deposit programme has
been rated 'CARE AAA (FD)' [Triple A] by CARE, which represents instruments considered to be "of
the best quality, carrying negligible investment risk". CARE has also rated the bank's Certificate of
Deposit (CD) programme "PR 1+" which represents "superior capacity for repayment of short term
promissory obligations". Fitch Ratings India Pvt. Ltd. (100% subsidiary of Fitch Inc.) has assigned the
"tAAA ( ind )" rating to the bank's deposit programme, with the outlook on the rating as "stable".
This rating indicates "highest credit quality" where "protection factors are very high". HDFC Bank
also has its long term unsecured, subordinated (Tier II) Bonds of Rs.4 billion rated by CARE and Fitch
Ratings India Private Limited. CARE has assigned the rating of "CARE AAA" for the Tier II Bonds while
Fitch Ratings India Pvt. Ltd. has assigned the rating "AAA( ind )" with the outlook on the rating as
"stable". In each of the cases referred to above, the ratings awarded were the highest assigned by
the rating agency for those instruments.

COMPETITIVE PROFILE MATRIX (CPM)

HDFC ICICI AXIS

Critical Weig Rati Sco Rati Sco Rati Scor


Success ht ng 1- re ng 1- re ng 1- e
Factor 4 4 4
Brand 0.13 2 0.26 3 0.39 1 0.13
Reputation
Level of 0.08 4 0.32 3 0.24 1 0.08
Product
Integration
Range of 0.05 3 0.15 1 0.05 2 0.10
Products
Successful 0.04 3 0.12 3 0.12 3 0.12
New
Introductio
ns
Market 0.14 4 0.56 2 0.56 2 0.10
Share
Sales Per 0.08 1 0.08 2 0.16 3 0.24
Employee
Low Cost 0.05 1 0.05 3 0.15 4 0.20
Structure
Variety of 0.07 4 0.28 2 0.14 2 0.14
Distributio
n Channel
Customer 0.02 2 0.04 4 0.08 1 0.02
Retention
Superior 0.11 3 0.33 4 0.44 4 0.44
IT
Capabilitie
s
Strong 0.15 3 0.45 3 0.45 4 0.60
Online
Presence
Successful 0.08 4 0.80 4 0.76 2 0.30
Promotion
s
Total 1 - 3.44 - 3.54 - 2.47

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