1

LOVELY PROFESSIONAL UNIVERSITY

DEPARTMENT OF MANAGEMENT

Format of Declaration of Authenticity by Student

DECLARATION OF AUTHANTICITY BY STUDENT

I, " POOJA DEVI”, hereby declare that the work presented herein is genuine work done
originally by me and has not been published or submitted elsewhere for the requirement of a
degree programme. Any literature, data or works done by others and cited within this
dissertation has been given due acknowledgement and listed in the reference section.

POOJA BRAR
(Student's name & Signature)

10902414
(Registration No.)

Date: 21ST Aug.

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Report on Summer Training

ON

Comparative analysis of public bank (SBI) and private bank (HDFC)

(Report HDFC BANK)

Submitted to Lovely Professional University

In partial fulfillment of the

Requirements for the award of Degree of
Master of Business Administration

Submitted by: - POOJA DEVI

University Registration N:-10902414
Roll NO.:-RT1901A08
Section:-RT1901AO8
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ACKNOWLEDGEMENT

\
I would like to thank my project guide Miss Sukhwinder kaur which helps me to complete this

research project. His encouragement, time and effort are greatly appreciated.

I would like to for supporting me during this project and providing me an opportunity to learn

outside the class room. It was a truly wonderful learning experience.

I would like to dedicate this project to my colleagues and all those who help me to complete this

project. Without their help and constant support this project would not have been possible.

(POOJA DEVI)
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TABLE OF CONTENT (Including list of tables and illustrations):-

Summary
 Introduction to banking services :-
 Theoretical foundation
 Objectives

 Review of literature
 Research Methodology
 Source of data
 Sample place
 Sampling technique
 Methodology
 Overview of HDFC BANK LTD.
 History
 Growth
 Landmarks
 Major players
 Profile of the HDFC BANK LTD.
 Company’s history
 Financial status of the company
 Balance sheet
 Profit and loss account
 Ratios
 Introduction of SBI bank
 Balance sheet
 Profit and loss account
 Ratios
 SWOT analysis of HDFC bank
 SWOT analysis of SBI BANK
 Combined analysis of SBI BANK & HDFC BANK
 Recommendations
 Conclusions
 Bibliography
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Summary

We are beginning the study on comparative analysis of the private bank with public bank. Soon, after
society recognized the benefits of using money as a medium of exchange, it recognized the need for
a safe place to save it. This safe place ultimately involved into financial institution that accept
deposits and make loans.
During the origin of the bankers, most of the banks were public banks. The banks were limited and
the employees were paid from the government. They were not having close contact with the
customers. The dealing of the staff with the customer was rude and they were not worried for the
deposits for which the government has employed them. Keeping in view the public dealing by the
public banks, the private sector arouse its voice to establish the private bankers whose dealing with
the customer should be polite and the other tasks should be done in stipulated time. The private
banks in to the existence with full strength and power.
The survey has been done analyzing the services given by the private banks and public banks. The
results are alarming and wonderful but there is one thing which has been ascertained from the survey
that is uneducated people and the people from the villages who do not know the difference between
the private and public.
Those people who are educated and of middle class they know the dealing of the private banks. The
private bank’s staff is very co-operative, loyal and helpful. The welcome desk of the private banks
solves the queries frequently and quickly .in private banks the staff understand the needs of the
customers and the services are quick.
The customers need not to stand in the long queues like public banks. In public banks the queue are
not solved even visiting 7-8 days. Their operation of opening an account is very lengthy. In private
banks it is very simple and the new account is open very easily.
The loan facilities in the private banks are very attractive on low rate of interest and the procedure is
very simple but in public banks the rate of interest are high and they require so many documents
which at least take one month.
The mission of the private banks is fulfilling socio-economic obligation and excellence in the
customer service. Another mission is to achieve sustained growth of business and profitability which
is not available in public bank. The other schemes run by private banks such as special deposit
scheme, scheme for senior citizen, life insurance against deposit of money, nomination facility, and
loan facility
On cheap interest rate where available but the normal men or a middle class man cannot take benefit
of these due to their long process system.
In private banks customer’s satisfaction is the prime task where as in public bank no body is worried
about this because they will get the recruitment from government on due date. Grievance handling
procedure is also faster in private banks .innovative services are only provided by the private banks.
All the private banks are computerized and link with internet. Their services are quick and correct in
comparison with public banks.
But one thing which alarming that is education among the uneducated and village people. One thing
which has been taken place in their minds is public bank is government bank and their money is safe
there. They do not know clear picture of the private banks,
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Their procedure, work, dealing and safety of their money. Their is an urgent need to advertise the
qualities and assurance of safety of money amongst middle society persons.
The young volunteers of private banks showed organize mela’s, visits to villages and published
posters about the banking facilities and especially of their deposit money and their insurance of life.
It is utmost requirement for campaign such type of festivals which will enhance their knowledge of
private banks.

FINDINGS:-

 Procedure in private banks for deposits is very simple.

 Customer services in private banks are very good customers are satisfied with the functioning
and services provided by the banker.
 The private banks have gain good reputation in the market due to its well planned good
customer service.
 The private banking system is functioning with more advanced technology.
 The co- operation of staff of private banks dealing quick solution and customer satisfactions
are praise worthy.

CHAPTER 1

(1.1) INTRODUCTION TO THE BANKING SECTOR

A banker or bank is a financial institution whose primary activity is to act as a payment agent for
customers to borrow and lend. The first modern bank was founded in Italy in Genoa in 1406; its
name was Bunco did San Giorgio (Bank of St. George).
Many other financial activities were added over time. For example banks are important players in
financial markets and offer financial services such as investment funds. In some countries such as
Germany banks are the primary owners of industrial corporations while in other countries such as the
United States banks are prohibited from owning non-financial companies. In Japan, banks are
usually the nexus of cross share holding entity known as zaibatsu In France"Bancassurance" is
highly present, as most banks offer insurance services (and now real estate services) to their clients
India’s financial service industry is dominated by the banking sector that contributes significantly to
the revenue of this industry. To be sure, the industry has generated tremendous employment
opportunities for the large sector of the strength and flexibility of its banking structure. In the Indian
context; banking is verily the proxy and indeed the cornerstone of the overall economic growth of the
country. Before liberalization, the Indian banking structure was largely controlled and parameters
like branch size and location were given paramount importance.
The Indian banking industry has come from a long way from being a sleepy business institution to a
highly proactive and dynamic entity. This transformation has been largely brought about by the large
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dose of liberalization and economic reforms that allowed banks to explore new business
opportunities rather than generating revenues from conventional streams (i.e. borrowing and
lending). The banking industry in India is highly fragmented with 30 banking units contributing to
almost 50% of deposit and 60% of advances. Indian nationalized banks (bank owned by the
government) continue to be the major lenders in the economy due to their sheer size and penetrative
networks which assures them high deposit mobilization. The Indian banking industry can be broadly
categorized into nationalized, private banks and the specialized banking institutions.
The Reserve Bank of India acts as a centralized body monitoring any discrepancies and shortcomings
in the system. It is foremost monitoring body in the Indian financial sector. The nationalized banks
(i.e. government owned banks) continue to dominate Indian banking arena. Industries estimates
indicate that out of 274 commercial banks operating in India, 223 banks are in public sector 51 are in
private sector. The private sector grid also includes 24 foreign banks that have started their
operations here. Under the ambit of the nationalized banks comes the specialized banking institution.
These institutions (i.e. co-operatives, rural development, imports and exports etc. these banks nimble
footed in approach and armed with efficient branch networks focus primarily on high revenue, rich
retail segments.
Unlike the commercial banks the co-operative do not lend on the basis of a prime-lending structure
and hence have lower overheads. This enables them to give a marginally higher percentage on saving
deposits. Many of these co-operative banks diversified in specialized areas (catering to the vast retail
audience) like car finance, housing loans, truck finance etc. In order to banks too have invested
heavily in information technology to offer high-end computerized services to its clients.
Figure: An application of Porter’s Five Forces model to the banking industry

NEW ENTRANTS

Threat of new entrants- HIGH

Bargaining power INDUSTRY Bargaining power

SUPPLIERS BUYERS
Suppliers-LOW COMPETITORS - buyers- HIGH
LOW

Threat of substitutes- LOW

SUBSTITUTES

The first bank in India, though conservative, was established in 1786. From 1786 till today, the
journey of Indian Banking System can be segregated into three distinct phases. They are as
mentioned below:
Early phase from 1786 to 1969 of Indian Banks
Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms.
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New phase of Indian Banking System with the advent of Indian Financial & Banking Sector Reforms
after 1991.
To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and Phase-in.

OBJECTIVES OF THE PRESENT STUDY

The present study focused on the perception of the difference in the services given by the hdfc banks
and state bank of India. The main objectives of the study include the following:
.

PRIMARY OBJECTIVE

• To study the different services given by the public and private bank.
• To know the financial position of the hdfc bank and State bank of India
• To study the level of awareness of respondents regarding the services provided by hdfc banks
and state bank of India
• To study the level of satisfaction of the customers from the services given by the public
and private bank.
• Main objective of the Research is to know whether hdfc banks or state bank of India is
earning profit or bearing loss in its past five year’s year.

NEED FOR THE STUDY

 To know that which bank satisfy the need of the customer either it is hdfc bank or state bank
of India
 To know the areas/ parameters that has to be corrected to increase the satisfaction level of the
customers.
 To study the need of the customer.
 To study the problems faced by the customer in banks.
 This study being based on the assumption that an interviewer is providing accurate and
reliable information may not hold true in every case.
 Firstly, there are public banks in the country and people just trust on the public banks. now,
India is a developing country
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(1.2) REVIEW OF LITERATURE

There are many banks in India some of them are public and some are private. Public banks are those
which are operated by the government and public banks are not. The working of the both banks is
same deposit and withdrawal of cash. The main difference is the services and the products offered by
the banks.private banks give the good services as compare to public bank but the awareness of the
public about the private bank is less.so, the main thing is the awarness of the public and customer
satisfaction.

(Arthur Meidan) (Year: 1983)Because of the intangible and inseparable characteristics of the bank
services, every bank needs to locate these services and branches at locations which provide
accessibility to the greatest numbers of both major categories of potential customers—private
individuals and firms (i.e. corporate customers). This article presents the major channels of
distribution for banking services and the four main types of quantitative techniques available for
bank branch location decisions—economic, spatial, and bivariate and multiple regression methods.
The article indicates the leading bank distribution strategies—defensive, offensive and
rationalization strategies—and attempts to assess the impact of new technology developments—
particularly of Electronic Fund Transfer Systems (EFTS) and Automatic Teller Machines (ATMs)—
on the future of distribution of bank services and branch location.(D.W Cowell) (Year: 1990)The
objectives of this paper are firstly to outline the scope and the content of marketing, and secondly to
explore the nature of the marketing of services as distinct from the marketing of products. In
fulfilling both these objectives the paper provides a background for other contributions in this
collection dealing with a variety of marketing of financial services examples and situations. (Ricky
Yee-Kong Chan) (Year: 1993)Reports a survey on the banking behavior of 300 college students in
Hong Kong which confirms several findings from Western countries. These include: limited banking
demand of students; popularity of split banking in account ownership; price-consciousness of
students; and importance of location convenience and on-campus promotion. (Curtis P.
McLaughlin, James A. Fitzsimmons) (Year: 1996)International trade in services is growing
rapidly despite many barriers to trade. Consumer services are being established worldwide and
increasingly business services are becoming globalized in much the same way that manufacturing is
outsourcing overseas. The manager of a service organization can no longer ignore international
competition in services, especially the globalization of back-room operations. Service managers need
a framework in which to develop a global service strategy. Addresses two questions which managers
face when developing a global service strategy: what are the factors that we can use to classify
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services in terms of their potential for moving globally; and how do these factors translate into
strategies for the globalization of specific services? The most common dimensions for classifying
service operations include consumer involvement and customization, complexity of inputs and
outputs, and labour intensity. Examines five generic strategies: multi-country expansion; importing
customers; following your customers; service unbundling; and beating the clock. (T.P.A.Carey)
(year: 1998) the revolution experienced in the banking industry over the last decade has led to a
constant series of changes with banks attempting to adjust their internal organisation to suit the ever-
changing external environment. The author includes edited extracts from his research into this
process of strategic formulation and the translation of marketing and planning concepts to meet the
needs and character of the corporate market in Britain. Major issues influencing the development of a
competitive strategy are examined, topics of strategic formulation, differentiation and the nature of
transactions between banks and their customers are discussed, and the findings of market and
industry analysis, outlining the practical use to which research findings have been put, is illustrated.
Findings reveal that banks have been forced to identify the profitability and content of the constituent
parts of their total business, and market segmentation is now seen as a necessary discipline. The
current economic environment requires not only a more rapid adjustment to change, but to be
effective must create within the organisation a culture which induces managers to act as agents of
change. (Ed Chung, Eileen Fischer) (Year: 1999) Reports a study of 214 Chinese Canadian
consumers across eight product categories. This study shows that intercultural differences in
consumer behavior are inadequately explained by the psychological construct of ethnic
identification, and that additional explanatory power is achieved when incorporating the ethnic
homogeneity of social ties. The results of the study support the proposition that the ethnic
homogeneity of strong social ties exerts significant influence over an individual’s consumption of
ethnic products, and is a much more robust predictor variable than ethnic identification. Also calls
for a more theory-based measure for the construct ethnic identification. (Madhukar G. Anger,
Rajan Nataraajan, John S. Jahera Jr) (Year: 1999)Examines the applicability of alternative
measures of service quality in the developing economy of India and assesses related issues in that
context. Based on data gathered from customers of two major banks, overall results support a
multidimensional construct of service quality and suggest that the SERVQUAL scale provides
greater diagnostic information than the SERVPERF scale. However, the five-factor
conceptualization of SERVQUAL does not seem to be totally applicable, and no significant
difference was found in the Predictive ability of the two measures. Further, although SERVQUAL
and SERVPERF have identical convergent validity, SERVPERF appears to have higher discriminate
validity than SERVQUAL. (G .S. Sureshchandar, Chandrasekhar an Rajendran, R. N.
Anantharaman) (Year: 2001) Total quality service (TQS) is a socio-technical approach for
revolutionary and effective management. However, the contemporary quality management literature
is overridingly manufacturing oriented and there seems to be a dearth of comprehensive studies
(from the management’s perspective) addressing the critical dimensions of TQS that will depict a
holistic TQM philosophy in service organizations. The present study is an earnest endeavour to fill
this void. Based on a thorough review of the prescriptive, practitioner, conceptual and empirical
literature, the study has identified 12 dimensions as crucial for the inculcation of a TQM ambience in
a service set-up. The criticality of each of these dimensions from a service perspective is
corroborated in detail. An instrument for measuring TQS with specific reference to the banking
sector has been developed. Data have been collected from executives from banks in a developing
economy. The instrument has been empirically tested for unidimensionality, reliability and
constructs validity using a confirmatory factor analysis approach. A model for TQS has also been
proposed, illustrating the relationships between the various dimensions. The present research work
offers a systematic framework for the conceptual and empirical understanding of TQS and its critical
factors. (Avinandan Mukherjee, Prithwiraj Nath, Manabendra Nath Pal) (Year: 2002)Explores
the linkage between performance benchmarking and strategic homogeneity of Indian commercial
banks. Devises a method of benchmarking performance of Indian commercial banks using their
published financial information. Defines performance by how a bank is able to utilize its resources to
generate business transactions and is measured by their ratio, which is then called the efficiency. The
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concept of efficiency is critical from a marketing perspective. Methodologically, in order to

overcome some of the shortcomings of simple efficiencies obtained through self-appraisal of
individual banks, a more “democratic” concept of cross-efficiency evaluated with the process of
peer-appraisal has been brought in to benchmark the banks. Clusters banks based on similarity in
business policy which offers a framework for competitive positioning in the target market and serves
as a basis for long-term strategic focus. Finds that the public sector banks generally outperform the
private and foreign banks in this rapidly evolving and liberalizing sector. (G.S Sureshchandar,
Chandrasekhar and Rajendran, R.N. Anantharaman) ( year : 2003 )Focuses on investigating
the critical factors of customer perceived service quality in banks of a developing economy – India.
Compares and contrasts the three groups of banks in India with respect to the service quality factors
from the perspective of the customers. There seems to be a great amount of variation with respect to
the level of service quality offered by the three groups of banks. Identifies the factors that
discriminate the three groups of banks. Customers in developing economies seem to keep the
“technological factors” of services such as core service and systematization of the service delivery as
the yardstick in differentiating good and bad service while the “human factors” seem to play a lesser
role in discriminating the three groups of banks. The service quality indices with respect to the three
groups and the Indian banking industry as whole, offer interesting information on the level of service
quality delivered by banks in India. (Babu P. George, Purva G.) (Year: 2004)The article is one in
a series that offers a fresh look at the paradigmatic shifts being experienced by the traditional;
government supported banking establishments, especially those in the erstwhile socialist and mixed
economies, in the newly embraced context of liberalization- privatization-globalization. It attempts
to fill a great void in debates that consistently neglected every voice except that of the triumphant
customer by giving some room for the managerial viewpoint as well. This mission is undertaken in
the context of customer complaints regarding failure in the delivery of banking services. The article
makes a case for the delicate aspect of employees' attitudes, their satisfaction and motivation, which
are posited as prerequisites for customer satisfaction, which is, again, sine qua non for the
competitive sustenance of the organization. It argues that sustainable advantage is possible only
through people and any normative proposal to rework the “apprehension” traditionally attached to
complaints should begin with a radical shift away from perceiving service production and
consumption as isolated systems to an altogether new conception of the product as symbolic of a
network relationship defined among the stakeholders and co-evolved in an environment whose
parameters are potentially altered through recurrent inter-party negotiations involved in the contract.
Everything, including the formation of appropriate policies and training for the frontline personnel to
cope up with the “irate” customers, should be properly informed from this perspective, it advocates.
(Nizar Souiden, Rahman) (Year: 2004)In today's competitive market, the purpose of a firm should
be read as “creating loyal customers”. Therefore, for sustainable competitive advantage, a firm
should be able to create and retain customers. One of the necessary conditions for this is that a firm's
offerings must be able to meet customers' needs and wants. For product planning and development, a
firm needs to know what customers want from a product. The objective of this paper is to analyze the
notion of customer satisfaction and to discuss the viability of quality as a source of sustainable
competitive advantage. Further, how a well-known quality technique can be adopted for use in
service environment and for development of customer focused service is also demonstrated. (Babu
P. George, Purva G. Hegde) (Year: 2004)The article is one in a series that offers a fresh look at the
paradigmatic shifts being experienced by the traditional; government supported banking
establishments, especially those in the erstwhile socialist and mixed economies, in the newly
embraced context of liberalization- privatization-globalization. It attempts to fill a great void in
debates that consistently neglected every voice except that of the triumphant customer by giving
some room for the managerial viewpoint as well. This mission is undertaken in the context of
customer complaints regarding failure in the delivery of banking services. The article makes a case
for the delicate aspect of employees' attitudes, their satisfaction and motivation, which are posited as
prerequisites for customer satisfaction, which is, again, sine qua non for the competitive sustenance
of the organization. It argues that sustainable advantage is possible only through people and any
normative proposal to rework the “apprehension” traditionally attached to complaints should begin
 12

with a radical shift away from perceiving service production and consumption as isolated systems to
an altogether new conception of the product as symbolic of a network relationship defined among the
stakeholders and co-evolved in an environment whose parameters are potentially altered through
recurrent inter-party negotiations involved in the contract. Everything, including the formation of
appropriate policies and training for the frontline personnel to cope up with the “irate” customers,
should be properly informed from this perspective, it advocates. (Zillur Rahman) (Year: 2004)In
today's competitive market, the purpose of a firm should be read as “creating loyal customers”.
Therefore, for sustainable competitive advantage, a firm should be able to create and retain
customers. One of the necessary conditions for this is that a firm's offerings must be able to meet
customers' needs and wants. For product planning and development, a firm needs to know what
customers want from a product. The objective of this paper is to analyze the notion of customer
satisfaction and to discuss the viability of quality as a source of sustainable competitive advantage.
Further, how a well-known quality technique can be adopted for use in service environment and for
development of customer focused service is also demonstrated (Zillur Rahman) (year: 2004) The
diversity of the service sector makes it difficult to come up with managerially useful generalizations
concerning marketing practice in service industry, but IT and the Internet are causing fundamental
changes in the economics of service industry. The Internets influence in creating e-services has been
revolutionary for providers and their customers. This paper argues for a focus on specific categories
of services and proposes a two-dimensional model. For classifying services in ways that transcends
narrow industry boundaries. This model has been developed using non-metric discreet attributes and
contains examples of services that fall under different groups. (Rick Ferguson, Kelly Havana)
(Year: 2007)They believe their deeper look into relationship banking reveals that, far from a magic
bullet approach, banks are customizing their relationship-building strategies to create value
propositions as unique as the institutions and customers they serve. When banks use loyalty
programs to engender trust and build confidence in the brand, the customer relationship will develop
organically, and so will profits
(Lynette M. Mcdonald, Sharyn Rundle – Thiele) (Year: 2008)By understanding the likely impact
on customer satisfaction of CSR initiatives vis-à-vis customer-centric initiatives, the academic
research community can assist managers to understand how to best allocate company resources in
situations of low customer satisfaction. Such endeavours are managerially relevant and topical.
Researchers seeking to test the propositions put forward in this paper would be able to gain links
with, and possibly attract funding from, banks to conduct their research. Such endeavours may assist
researchers to redefine the stakeholder view by placing customers at the centre of a network of
stakeholders.

(3.2)RESEARCH METHODOLGY

RESEARCH: - It means search for facts, answers to questions and solutions to problems.
RESEARCH METHODOLOGY: - Method is a way of doing something and methodology is a set
of methods used in a particular area of activity. The purpose of our study is to evaluate the
customer’s response towards the study of the difference between the services given by the public
bank and private bank... This is an informative survey as it evaluates the customers of the both
banks.
METHOD OF SAMPLING
RANDOM SAMPLING: - In random sampling samples are taken randomly without any priority.

Research Design
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TYPES OF RESEARCH
DESIGN

EXPLORATORY DESCRIPTIVE EXPERIMENTAL

RESEARCH & RESEARCH DESIGN
DESIGN DIAGNOSTIC
RESEARCH DESIGN

Research design constitutes the blue print for the collection, measurement and analysis of data. The
present study seeks to identify the extent of preference of services of which bank either HDFC or
SBI . The research design is descriptive in nature...

Data design
The data design involves different aspects like the nature of the data, the data sources, the data
frequency and the tools used for the analysis of data.

Nature of data
Secondary data has been used to achieve the objectives of the study.

Data Collection
Keeping in mind the objectives of the study, the data collected from BUSINESS MAGAZINES,
NEWSPAPERS, internet sites etc.

CHAPTER -2

(2.1) HISTORY OF HDFC BANK:-

HDFC Bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its
registered office in Mumbai, India. The Bank commenced operations as a Scheduled
Commercial Bank in January 1995.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 the RBI's liberalization of the
Indian Banking Industry in 1994.Headquartered in Mumbai, HDFC Bank, has a network of
over 531 branches spread over 228 cities across India. All branches are linked on an online
real-time basis. Customers in over 120 locations are serviced through Telephone Banking. The
 14

Bank also has a network of about over 1054 networked ATMs across these cities. HDFC
Bank's ATM network can be accessed by all domestic and international Visa / MasterCard,
Visa Electron / Maestro, Plus / Cirrus and American Express Credit / Charge cardholders.
HDFC Bank has won many awards for its excellent service. Major among them are "Best Bank in
India" by Hong Kong-based Finance Asia magazine in 2005 and "Company of the Year" Award for
Corporate Excellence 2004-05.Currently HDFC Bank has 758 branches, 1,716 ATMs, in 325 cities
in India, and all branches of the bank are linked on an online real-time basis. The bank offers many
innovative products & services to individuals, corporate, trusts, governments, partnerships, financial
institutions, mutual funds, insurance companies. It is a path breaker in the Indian banking sector. In
2007 HDFC Bank acquired Centurion Bank of Punjab taking its total branches to more than 1,000.
Though, the official license was given to Centurion Bank of Punjab branches, to continue working as
HDFC Bank branches, on May 23, 2008.
GROWTH:-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. Our business
philosophy is based on four core values - Customer Focus, Operational Excellence, Product
Leadership and People. We believe that the ultimate identity and success of our bank will reside in
the exceptional quality of our people and their extraordinary efforts. For this reason, we are
committed to hiring, developing, and motivating and retaining the best people in the industry. Our
mission is to be "a World Class Indian Bank", benchmarking ourselves against international
standards and best practices in terms 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. We are committed to do this while ensuring the highest levels of ethical standards,
professional integrity, corporate governance and regulatory compliance. Our business strategy
emphasizes the following:

Increase our market share in India’s expanding banking and financial services industry by
following a disciplined growth strategy focusing on quality and not on quantity and delivering
high quality customer service.

Leverage our technology platform and open scaleable systems to deliver more products to more
customers and to control operating costs.

Maintain our current high standards for asset quality through disciplined credit risk management.

Develop innovative products and services that attract our targeted customers and address
inefficiencies in the Indian financial sector.

Continue to develop products and services that reduce our cost of funds.

Focus on high earnings growth with low volatility.

LANDMARKS
T IS becoming increasingly clear that the private banking (and perhaps the sector as a whole, barring
a couple of public sector banks) arena is becoming a two-bank play, at least as far as the stock
 15

market goes. The two in question are HDFC Bank and ICICI Bank. What is interesting is that even
these two are taking a divergent path to growth. Divergent strategy: Even their parents have a
completely different strategy. The entire gamut of their growth strategy was unveiled in clear terms
in the past week. Both the banks are clear in one aspect: The need to become big through acquisition
and organic growth. For instance, the Housing Development Finance Corporation chairman, Mr.
Deepak Parekh, stated the group's views in no uncertain terms: HDFC is not involved in acquiring
any bank; it would be interested in new private sector banks if the price is right; it would concentrate
on organic growth as it presented fewer problems than integration; promoters' price expectations are
high and a disincentive; size matters and acquisition of new private sector banks is always an option.
Making a merger: While HDFC has confined itself to articulating its growth strategy, the ICICI Bank
hit the deck running. It announced a merger with an `old' private sector bank -- Bank of Madura
(BoM). Though the swap ratio is prima facie liberal for BoM shareholders, ICICI Bank is effectively
buying the bank at book value. This is the first instance of an old and a new generation private sector
bank coming together. Through mergers -- HDFC Bank acquired Times Bank and now ICICI Bank,
BoM -- and good organic growth, the two banks have emerged as big players. Following the merger
with BoM, ICICI Bank would have an asset base of close to Rs 16,000 crores.
Paper power: What is more important is that these two banks are also well-placed to go move further
on the acquisition path. Their stocks are highly fancied and held by many institutional investors.
Both have a high level of market capitalization and that gives them the power of stock as a currency
to pursue the acquisition path.
With both stocks trading at a considerable premium in terms of price-earnings multiple compared to
their peers, the cost involved may not be high. Even in the case of the ICICI-BoM merger, the swap
ratio would mean only an addition of 2.38 crores shares to the equity of ICICI Bank.
As a percentage of its existing equity of Rs 196.8 crores, the equity expansion would be around 12
per cent. Considering the strengths BoM would add in the medium-to-long term, this is not too stiff a
price for existing shareholders as well. HDFC Bank too possesses a similar advantage and that was
clear in 1998-99 when it acquired Times Bank.

New-new dalliance: Even now, HDFC Bank is likely to look at new private sector banks. This may
make sense as most of the residual old generation banks may not offer a good fit to it. It may not
have to spend too much time or money integrating the operations of such banks. Of the latter lot,
BoM was among the bigger players and had good upgrade on technology too.
Even then, it may not be easy for ICICI Bank to replicate its own technology and employee-level
structure. The process may take some time but it may be worth it from a long-term perspective in this
particular case, as far as old generation private sector banks go.
While these two banks are going strong in terms of organic growth, size and acquisitions (done and
would-be), the other private sector banks appear destined to be sideline players before they are
 16

gobbled up by one of the two. None of them has shown the alacrity to grow big though Global Trust
Bank is ahead in this pack.
Mumbai, Jan. 21 HDFC Bank posted net profit of Rs 429 crores for the quarter ended December 31,
2007, up 45 per cent from Rs 296 crores in the same quarter last year. The increase in profits was due
to increase in net interest income as well as other income.
Mr. Parish Sukhtankar, Executive Director, HDFC Bank, said the third quarter was a fairly strong
one on all fronts. “Our balance sheet growth has been strong in both retail and corporate assets as
well as in deposits.”

Other income increased by 82 per cent, to touch Rs 679 crores (Rs 373 crores). The main
contributors to other income were fees and commissions of Rs 460 crores; foreign exchange and
derivatives revenues of Rs 74.2 crores and profit or loss on revaluation or sale of investments of Rs
131.5 crores.

Top HDFC Bank Players

Company Location

Canada Bank Bangalore, India

ICICI Bank Mumbai, India

State Bank of India Mumbai, India

The Banks above are also the major players.

Profile of the organization

 17

HDFC BANK COMPANY - PROFILE

Company Profile: HDFC Bank Limited

Ticker: HDB

Exchanges: NYSE

2009 Sales: 3,094,900,000

Major Industry: Financial

Sub Industry: Commercial Banks

Country: INDIA

PROFILE
Incorporated in August 1994 as HDFC Bank Limited, the bank now has a wide network of over 531
branches across 228 cities in India, and over a thousand networked ATM's.
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 the RBI’s liberalization of the Indian Banking Industry. The bank was incorporated in Aug
1994 in the name of ‘HDFC Bank Limited’, with its registered office in Mumbai. The bank
commenced operations as a Scheduled Commercial Bank in Jan 1995.
HDFC is India’s premier housing finance company and enjoys an impeccable track record in India as
well as in international markets. Since its inception in 1997, the Corporation has maintained a
consistent and healthy growth in its operations to remain the clear market leader in mortgages in
India. Its outstanding loan portfolio covers a Million dwelling units. HDFC has developed significant
 18

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

Promoter
HDFC is India's premier housing finance company and enjoys an impeccable track record in India as
well as in international markets. Since its inception in 1977, the Corporation has maintained a
consistent and healthy growth in its operations to remain the market leader in mortgages. Its
outstanding loan portfolio covers well over a million dwelling units. HDFC has developed significant
expertise in retail mortgage loans to different market segments and also has a large corporate client
base for its housing related credit facilities. With its experience in the financial markets, a strong
market reputation, large shareholder base and unique consumer franchise, HDFC was ideally
positioned to promote a bank in the Indian environment.

MISSION
HDFC Bank’s began operations in 1995 with a simple mission to be a World Class Indian Bank. We
realized that only a single-minded focus on product quality and service excellence would help us get
there. Today, the bank is on the way towards that goal. It is extremely gratifying that its efforts
towards providing customer convenience have been appreciated both nationally and internationally.
The bank’s aim is to build a sound customer franchise across distinct businesses so as to be the
preferred provider of banking services in the niche segments that the bank operates in and to achieve
healthy growth in profitability, consistent with the bank’s risk appetite. The Bank aims to assure the
highest level of ethical standards, professional integrity and regulatory compliance.

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

WHOLE SALE BANKING SERVICES

The Bank's target market ranges from large, blue-chip manufacturing companies in the
Indian corporate to small & mid-sized corporate 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 corporate
including multinationals, companies from the domestic business houses and prime public sector
companies. It is recognized as a leading provider of cash management and transactional banking
solutions to corporate customers, mutual funds, stock exchange members and banks.

RETAIL BANKING SERVICES

The objective of the Retail Bank is to provide its target market customers a full range of financial
products and banking services, giving the customer a one-stop window for all his/her banking
requirements. The products are backed by world-class service and delivered to the customers through
 19

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 September 30, 2005, the bank had a total card base (debit and
credit cards) of 5.2 million cards. The Bank is also one of the leading players in the "merchant
acquiring" business with over 50,000.
MAJOR PLAYER
Andhra Bank
Bank of Baroda
Bank of India
Canara Bank
Central Bank of India
Citibank
Deutsche Bank
HSBC etc.
In private sector bank ICICI Bank. Axis Bank. HSBC. Standard charted. Citi bank. Is the main
competitor of HDFC bank where as in public sector bank its main competitor is SBI? Punjab national
bank is the main competitor

CHAPTER 3
Company history
 20

Mr. Hasmukhbhai Parikh

Mr. Hasmukhbhai Parikh

If ever there was a man with a mission it was Hasmukhbhai Parikh, the Founder and Chairman-
Emeritus, who left this earthly abode on November 18, 1994.
Born in a traditional banking family in Surat, Gujarat, Mr. Parikh started his financial career at
Harkisandass Lukhmidass - a leading stock broking firm. The firm closed down in the late seventies,
but, long before that, he went on to become a towering figure on the Indian financial scene.
In 1956 he began his lifelong financial affair with the economic world, as General Manager of the
newly-formed Industrial Credit and Investment Corporation of India (ICICI). His vision for
mortgage finance for housing gave birth to the Housing Development Finance Corporation - it was a
trend-setter for housing finance in the whole Asian continent.

He was a true development banker. His building up HDFC without any government assistance is
itself a brilliant chapter in financial history. His wisdom and warmth drew people from all walks of
life to him, for advice, guidance and inspiration. And now his dream comes true .the bank is not only
the branches in India but also have the international branches.

Board of directors
 21

No. of Committees***
Sr. No. of
Name of Director Category*
No. Directorship**
Member Chairperson

Executive
1. Mr. Deepak S. Parikh 11 7 5
Chairman

2. Mr. Keshub Mahindra Independent 6 1 1

3. Mr. Shirish B. Patel Independent 1 0 0

4. Mr. B. S. Mehta Independent 14 9 5

Mr. D. M.
5. Independent 4 1 1
Sukthankar

6. Mr. D. N. Ghosh Independent 4 1 1

7. Dr. S. A. Dave Independent 11 9 0

Mr. S.
8. Independent 3 1 0
Venkitaramanan^

9. Dr. Ram S. Tarneja Independent 13 7 2

10. Mr. N. M. Munjee Independent 14 10 4

11 Dr. Bimal Jalan Independent 0 0 0

Non-
12 Dr. J. J. Irani 10 2 0
executive

Non-
13 Mr. D. M. Satwalekar 6 2 2
executive

Joint
Ms. Renu Sud
14 Managing 13 5 3
Karnad
Director

Vice-
Chairman &
15 Mr. Keki M. Mistry 11 8 3
Managing
Director
 22

PRODUCTS

ACCOUNTS & DEPOSITS LOANS INVESTMENT& INSURANCE

Savings accounts personal loan mutual funds
Saving plus account two wheeler loan insurance
Saving max account new car loan general health insurance

Regular saving account used car loan bonds

Education loan knowledge centre
Salary account loan against property
Classic health care finance
Regular
Defense cards payments services
Kid’s advantage account silver plus credit card prepaid premium
Pension saving bank account gold credit card bill pay
Family saving group women’s gold credit card direct pay
Health plus card business credit card excise & service
tax payment
Current account corporate credit card religious offering
Plus current account donation to charity
Trade current account debit card
Premium current account easy shop international debit card other
services
Fixed account easy shop gold debit card net
banking
Regular fixed deposit easy shop women’s advantage debit card insta alerts
5 year tax saving fixed deposit mobile
banking
Super saver facility ATM
Phone
banking
Demat account
Safe deposit locker
 23

Balance
sheet of
HDFC bank
Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Sources of funds
Owner's fund

Equity share
capital 457.74 425.38 354.43 319.39 313.14

Share application
money - 400.92 - - 0.07

Preference share
capital - - - - -

Reserves &
surplus 21,064.75 14,226.43 11,142.80 6,113.76 4,986.39
Loan funds

Secured loans - - - - -
1,67,404.4 1,42,811.5 1,00,768.6
Unsecured loans 4 8 0 68,297.94 55,796.82
1,88,926.9 1,57,864.3 1,12,265.8
Total 3 1 3 74,731.09 61,096.42
Uses of funds
Fixed assets

Gross block 4,707.97 3,956.63 2,386.99 1,917.56 1,589.47

Less : revaluation
reserve - - - - -

Less : accumulated
depreciation 2,585.16 2,249.90 1,211.86 950.89 734.39

Net block 2,122.81 1,706.73 1,175.13 966.67 855.08

 24

Capital work-in-
progress - - - - -

Investments 58,607.62 58,817.55 49,393.54 30,564.80 28,393.96

Net current assets

Current assets,
loans & advances 5,955.15 6,356.83 4,402.69 3,605.48 2,277.09

Less : current
liabilities &
provisions 20,615.94 22,720.62 16,431.91 13,689.13 7,849.49

Total net current

assets -14,660.79 -16,363.79 -12,029.22 -10,083.65 -5,572.40

Miscellaneous
expenses not
written - - - - -
Total 46,069.63 44,160.49 38,539.45 21,447.82 23,676.64
Notes:

Book value of
unquoted
investments - - - - -

Market value of
quoted
investments - - - - -

Contingent 4,87,176.3 4,14,533.9 5,99,928.7 2,09,338.6

liabilities 7 3 9 1 1,44,137.86
 25

Number of equity
shares
outstanding(Laces) 4577.43 4253.84 3544.33 3193.9 3131.42

ANALYSIS: - IN HDFC BANK investments more in year 2010 are more as compared to last 5
years. I.e. are 58607.62 in year 2010 up to march. That means hdfc bank encoring profit as compared
to last 5 years.

Profit loss
account
Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Income

Operating 19,958.7 19,770.7 12,354.4 8,303.3

income 6 2 1 4 5,567.67

Expenses

Material
consumed - - - - -

Manufacturin
g expenses - - - - -
 26

Personnel
expenses 2,289.18 2,238.20 1,301.35 776.86 486.82

Selling
expenses 83.12 108.68 114.73 74.88 80.85

Administrative 1,519.3
expenses 4,936.73 4,583.86 2,247.48 2 1,424.59

Expenses
capitalized - - - - -
2,371.0
Cost of sales 7,309.02 6,930.74 3,663.56 6 1,992.26
Operating 2,752.8
profit 4,863.44 3,928.87 3,803.73 3 1,645.91

Other
recurring
income 17.72 - 43.04 102.96 31.38

Adjusted 2,855.7
PBDIT 4,881.17 - 3,846.77 9 1,677.29

Financial 3,179.4
expenses 7,786.30 8,911.10 4,887.12 5 1,929.50

Depreciation 394.39 359.91 271.72 219.6 178.59

Other write
offs - - - 241.09 245.16
2,395.1
Adjusted PBT 4,486.77 3,568.97 3,575.05 0 1,253.54

Tax charges 1,340.99 1,054.92 690.9 497.7 383.03

1,142.5
Adjusted PAT 2,944.68 2,240.75 1,589.48 0 870.51

Nonrecurring
items 4.02 4.19 0.7 -1.05 0.27
 27

Other non
cash
adjustments -0.93 -0.59 -0.06 -0.35 -

Reported net 1,141.1

profit 2,947.77 2,244.35 1,590.12 0 870.78

Earnings
before 2,596.1
appropriation 6,403.33 4,818.98 3,522.15 2 1,473.12
Equity
dividend 549.29 425.38 301.27 223.57 172.23

Preference
dividend - - - - -

Dividend tax 91.23 72.29 51.2 38 24.16

Retained 2,334.5
earnings 5,762.81 4,321.31 3,169.68 5 1,276.73
ANALYSIS:-Operating profit in year march 2010 is 4,863.44 which are more than last 5 years it
means position of hdfc bank is good in market. Cost of sales is 7,309.02.which is quite more than
other years. Financial expenses are also less in year march 2010.Due to these reasons we can say that
hdfc banks encore profit during last years.

CASH FLOW OF HDFC:-

Cash flow
Mar ' Mar '
Mar ' 10 Mar ' 09 Mar ' 08 07 06

Profit 1,638.7
before tax 4,289.14 3,299.25 2,280.63 5 1,253.51

Net cash
flow-
operating
activity 9,389.89 -1,736.14 3,583.43 666.63 1,724.76
 28

Net cash
used in
investing
activity -551.51 -663.78 -619.82 -311.4 -381.97

Net cash
used in
fin. 1,637.8
Activity 3,598.91 2,964.66 3,628.34 8 1,104.87

Net
inc/de. in
cash and 12,435.7 1,993.1
equivalent 8 564.74 6,591.95 1 2,447.66

Cash and
equivalent
begin of 17,506.6 14,778.3 6,188.6
year 2 4 8,074.54 6 3,741.00

Cash and
equivalent
end of 29,942.4 15,343.0 14,666.4 8,181.7
year 0 8 9 7 6,188.66

ANALYSIS:-Hdfc also takes place tax benefit advantage. They have encored profit before tax in
March 2010 is 4,289.14 which are more than last five years. Because net cash used in investing
activity is very lassie is -551.51

CAPITAL STRUCTURE OF HDFC BANK:-

Paid
Class Paid Up Up Paid
From To Of Authorize Issued Shares Face Up
Year Year Share d Capital Capital (Nos) Value Capital
Equity
2009 2010 Share 550 457.74 4.6E+08 10 457.74
 29

Equity
2008 2009 Share 550 425.38 4.3E+08 10 425.38
Equity
2007 2008 Share 550 354.43 3.5E+08 10 354.43
Equity
2006 2007 Share 450 319.39 3.2E+08 10 319.39
Equity
2005 2006 Share 450 313.14 3.1E+08 10 313.14
Equity
2004 2005 Share 450 309.88 3.1E+08 10 309.88
Equity
2003 2004 Share 450 284.79 2.8E+08 10 284.79
Equity
2002 2003 Share 450 282.05 2.8E+08 10 282.05
Equity
2001 2002 Share 450 281.37 2.8E+08 10 281.37
Equity
2000 2001 Share 300 243.6 2.4E+08 10 243.6
Equity
1999 2000 Share 300 243.28 2.4E+08 10 243.28
Equity
1998 1999 Share 300 200 2E+08 10 200
Equity
1997 1995 Share 300 110 1.1E+08 10 110

ANALYSIS
The authorized capital of HDFC bank is RS 4.5 bn the paid up capital is RS 3.1 bn The HDFC bank
hold 22.1% of the bank equity and 19.4% of equity is held by ADS depository (in respect of the bank
American depository shares (ADS) issue .Roughly 31.3% of equity is held by foreign institutional
investor (FIIs) and the bank has about 1, 90,000 share holders .The share are listed on the stock
exchange Mumbai and national stock exchange. The bank American depository shares are listed on
New York stock Exchange under the symbol (HDB)

Ratios
Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Per share
ratios
Adjusted EPS
(Rs) 64.33 52.68 44.85 35.77 27.8
 30

Adjusted cash
EPS (Rs) 72.95 61.14 52.51 50.2 41.33
Reported EPS
(Rs) 64.42 52.77 44.87 35.74 27.81

Reported cash
EPS (Rs) 73.03 61.24 52.53 50.16 41.34
Dividend per
share 12 10 8.5 7 5.5
Operating
profit per share
(Rs) 106.25 92.36 107.32 86.19 52.56

Book value (excl

rev res) per
share (Rs) 470.19 344.44 324.38 201.42 169.24

Book value (inc

rev res) per
share (Rs.) 470.19 344.44 324.38 201.42 169.24

Net operating
income per
share (Rs) 436.03 464.77 348.57 259.98 177.8

Free reserves
per share (Rs) 363.55 252.37 269.89 155.69 132.01

Profitability
ratios

Operating
margin (%) 24.36 19.87 30.78 33.15 29.56

Gross profit
margin (%) 22.39 18.05 28.58 30.5 26.35

Net profit
margin (%) 14.76 11.35 12.82 13.57 15.55

Adjusted cash
margin (%) 16.71 13.15 15.01 19.07 23.11

Adjusted return
on net worth
(%) 13.68 15.29 13.82 17.75 16.42
 31

Reported return
on net worth
(%) 13.7 15.32 13.83 17.74 16.43

Return on long
term funds (%) 56.08 83.31 62.34 74.91 60.06

Leverage
ratios

Long term
debt / Equity - - - - -

Total
debt/equity 7.78 9.75 8.76 10.62 10.53

Owners fund as
% of total
source 11.39 9.3 10.24 8.6 8.67

Fixed assets
turnover ratio 4.24 5 5.18 4.33 3.5

Liquidity
ratios
Current ratio 0.28 0.27 0.26 0.26 0.29

Current ratio
(inc. st loans) 0.03 0.03 0.03 0.04 0.03

Quick ratio 7.14 5.23 4.89 4.07 5.18

Inventory
turnover ratio - - - - -
Payout
ratios

Dividend
payout ratio
(net profit) 21.72 22.16 22.16 22.91 22.55

Dividend
payout ratio
(cash profit) 19.15 19.1 18.93 16.32 15.17

Earning
retention ratio 78.25 77.79 77.83 77.11 77.44
 32

Cash earnings
retention ratio 80.82 80.87 81.07 83.69 84.83

Coverage
ratios

Adjusted cash
flow time total
debt 50.13 54.91 54.14 42.6 43.11

Financial
charges
coverage ratio 1.63 1.44 1.79 1.9 1.87

Fin. charges
cov.ratio (post
tax) 1.43 1.29 1.38 1.5 1.67

Component
ratios

Material cost
component (%
earnings) - - - - -

Selling cost
Component 0.41 0.54 0.92 0.9 1.45
Exports as
percent of total
sales - - - - -

Import comp. in
raw mat.
Consumed - - - - -

Long term
assets / total
Assets 0.91 0.9 0.91 0.89 0.92

Bonus
component in
equity capital
(%) - - - -

ANALYSIS:-: dividend per share ratio in year March 2010 is 12% Gross profit margin (%) is 22.39
and Net profit margin (%) is 14.76 along year march 2010. Debt-equity ratio is 7.78% but current
 33

ratio is 0.28% and its ideal ratio is 2:1. Means current ratio is very less as compared to its ideal
ratio.due to this liquidity position of the bank is not good. But according to payouts ratio’s the
financial position of the company is good. Long term asset or total ratio in year march 2010 is 0.91.
Which nearly same about past five years. That means if hdfc encoring profit from past five years but
also bearing loss.

INTRODUCTION OF SBI
The State Bank of India, popularly known as SBI, is one of the leading banks in India. The bank
traces its origin to the first decade of the 19th century. Later on, it was merged with the Imperial
Bank. In the year 1955, the Government of India nationalized the Imperial Bank along with the
Reserve Bank of India. Ever since that time, the bank acquired its present name that is SBI.
The State Bank of India is India's largest commercial bank. The bank has been striving sincerely to
adhere to the efforts of providing utmost customer satisfaction to the best possible extent.

HISTORY OF STATE BANK OF INDIA

Not many financial institutions in the world today can claim the antiquity and majesty of the
State Bank of India. Founded nearly two centuries ago with the primary intent of imparting
stability to the money market, the Bank from its inception mobilized funds for supporting both
the public credit of the Company's Governments in the three presidencies of British India and
the private credit of the European and Indian merchants.
From about the 1860s, when the Indian economy took a significant leap forward under the
impulse of quickened world communications and ingenious methods of industrial and
agricultural production, the Bank became intimately involved in the financing of practically
every trading, manufacturing and mining activity of the sub-continent. Although large
European and Indian merchants and manufacturers were undoubtedly the principal
beneficiaries, the ‘small man' was never ignored as loans as low as Rs.100 were disbursed in
agricultural districts against gold ornaments. Added to these the Bank till the
Creation of the Reserve Bank in 1935 carried out numerous central-banking functions.
In the post-Depression era, for instance, when business opportunities became extremely
restricted, rules laid down in the book of instructions were relaxed to ensure that good business
did not go past. Yet seldom did the Bank contravene its rules or depart from sound banking
principles to retain or expand its business. An innovative array of offices, unknown to the
world then, was devised in the form of branches, sub-branches, treasury pay-offices, pay
 34

offices, sub-pay offices and outstations to exploit the opportunities of an expanding economy.
New business strategies were also evolved way back in 1937 to render the 'best banking service'
through 'prompt and courteous' attention to customers.
A highly efficient and experienced management, functioning in a well-defined organizational
structure
Did not take long to place the Bank on an exalted pedestal in the areas of business,
profitability, internal discipline and above all credibility. An impeccable financial status,
consistent maintenance of the lofty traditions of banking and observance of a high standard of
integrity in its operations helped the Bank gain a pre-eminent status. No wonder the
admiration for the Bank was universal as key functionaries of the India Office and
Government of India, successive finance ministers of independent India, Reserve Bank
governors and representatives of the chambers of commerce showered encomiums on it.
Modern day management techniques were also very much evident in the good old days. Years
before corporate governance had become a buzzword; the Bank's board functioned with a high
degree of responsibility and concern for the shareholder. An unbroken record of profits and a
fairly high rate of dividend all through ensured satisfaction. Prudential management and asset-
liability management not only protected the interests of the Bank but also ensured that the
obligations to customers were met. The traditions of the past continue to be upheld even to this
day as the State Bank gears itself to meet the emerging challenges of the new millennium.

MISSION STATEMENT
To retain the bank's position as the Premier Indian Financial Services Group, with world class
standards and significant global business committed to excellence in customer, shareholder and
employee satisfaction and to play a leading role in the expanding and diversifying financial services
sector while continuing emphasis on its development banking role.
VISION STATEMENT (QUALITATIVE)
Premier Indian Financial Services Group with global perspective, world class standards of efficiency
and professionalism and core institutional values.
 Retain its position in the country as a pioneer in development banking.
 Maximize shareholder value through high sustained earnings per share.
 An institution with a culture of mutual care and commitment, a satisfying and exciting work
environment and continuous learning opportunities.
VALUES
 Excellence in customer service.
 Profit orientation
 Belonging and commitment to the bank.
 Fairness in all dealings and relations.
 Risk-taking and innovation.
 Team-playing.
 Learning and renewal.
 Integrity.
 35

Balance Sheet of State Bank ------------------- in Rs. Cr. -------------------

of India

Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

 36

Capital and Liabilities:

Total Share
Capital 526.3 526.3 631.47 634.88 634.88

Equity Share
Capital 526.3 526.3 631.47 634.88 634.88

Share
Application
Money 0 0 0 0 0
Preference
Share
Capital 0 0 0 0 0
Reserves 27,117.79 30,772.26 48,401.19 57,312.82 65,314.32

Revaluation
Reserves 0 0 0 0 0

Net Worth 27,644.09 31,298.56 49,032.66 57,947.70 65,949.20

3,80,046.0 4,35,521.0 5,37,403.9 7,42,073.1
Deposits 6 9 4 3 8,04,116.23

Borrowings 30,641.24 39,703.34 51,727.41 53,713.68 1,03,011.60

4,10,687.3 4,75,224.4 5,89,131.3 7,95,786.8
Total Debt 0 3 5 1 9,07,127.83

Other
Liabilities & 1,10,697.5
Provisions 55,538.17 60,042.26 83,362.30 7 80,336.70
Total 4,93,869.5 5,66,565.2 7,21,526.3 9,64,432.0 10,53,413.7
Liabilities 6 5 1 8 3
Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Assets
Cash &
Balances
with RBI 21,652.70 29,076.43 51,534.62 55,546.17 61,290.87
 37

Balance with
Banks,
Money at
Call 22,907.30 22,892.27 15,931.72 48,857.63 34,892.98
2,61,641.5 3,37,336.4 4,16,768.2 5,42,503.2
Advances 3 9 0 0 6,31,914.15
1,62,534.2 1,49,148.8 1,89,501.2 2,75,953.9
Investments 4 8 7 6 2,85,790.07

Gross Block 7,424.84 8,061.92 8,988.35 10,403.06 11,831.63

Accumulated
Depreciation 4,751.73 5,385.01 5,849.13 6,828.65 7,713.90

Net Block 2,673.11 2,676.91 3,139.22 3,574.41 4,117.73

Capital
Work In
Progress 79.82 141.95 234.26 263.44 295.18

Other Assets 22,380.84 25,292.31 44,417.03 37,733.27 35,112.76

4,93,869.5 5,66,565.2 7,21,526.3 9,64,432.0 10,53,413.7
Total Assets 4 4 2 8 4

Contingent 1,91,819.3 2,59,536.5 7,36,087.5 6,14,603.4

Liabilities 4 7 9 7 4,29,917.37
Bills for 1,52,964.0
collection 57,618.44 70,418.15 93,652.89 6 1,66,449.04

Book Value
(Rs) 525.25 594.69 776.48 912.73 1,038.76
 38

ANALYSIS: - Total assets are less i.e. 1053413.74 in year march 2010 as compared to past five
years .There is increase in total assets as compared to year 2009 i.e. 88981.7.Total liabilities are
1,053,413.73.In year march 2010. That is quite large as compared to past 5 years. But liabilities are
more also assets are more. That means more the risk more will be the profit.

Cash Flow of State ------------------- in Rs. Cr. -------------------

Bank of India
 39

Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Net Profit Before 14180.6

Tax 6837.36 7625.08 10438.9 4 13926.1

Net Cash From

Operating
Activities 6039.14 -1776.07 -856.87 29479.7 -1804.99

Net Cash (used

in)/from

Investing
Activities -1134.18 -284.56 -2798.01 -1651.93 -1761.52

Net Cash (used

in)/from Financing 19371.1
Activities 461.98 9494.11 2 5097.38 -3359.67

Net
(decrease)/increase
In Cash and Cash 15716.2 32925.1
Equivalents 5366.94 7433.49 4 8 -6926.18

Opening Cash & 51968.6 71478.6

Cash Equivalents 39322.1 44535.2 9 2 103110
 40

Closing Cash & 44689.0 51968.6 67466.3 104403. 96183.8

Cash Equivalents 4 9 4 8 4

ANALYSIS:-Net profit before interest and tax is 13926.10 in year march 2010 which is quite
more than past five years. That means SBI bank also encoring profit as compared to past five years

Key Financial Ratios of ------------------- in Rs. Cr. -------------------

State Bank of India
Mar Mar Mar
'06 '07 '08 Mar '09 Mar '10
Investment
Valuation Ratios

Face Value 10 10 10 10 10

Dividend
Per Share 14 14 21.5 29 30

Operating
Profit Per 124.7 147.7 173.6
Share (Rs) 7 2 1 230.04 229.63
 41

Net
Operating
Profit Per 719.5 833.3 899.8 1,179.4
Share (Rs) 4 8 3 5 1,353.15

Free
Reserves Per 178.3 184.4 356.6
Share (Rs) 3 3 1 373.99 412.36

Bonus in
Equity
Capital -- -- -- -- --

Profitability Ratios
Interest
Spread 4.31 4.2 4.32 4.34 3.82

Adjusted
Cash
Margin (%) 13.06 11.43 12.81 13.04 -42.79

Net Profit
Margin 11.21 10.12 11.65 12.03 10.54

Return on
Long Term
Fund (%) 97.89 99.2 86.83 100.35 23.26

Return on
Net Worth
(%) 15.94 14.5 13.72 15.74 13.89

Adjusted
Return on
Net Worth
(%) 15.93 14.47 13.7 15.74 -57.84
 42

Return on
Assets
Excluding 525.2 594.6
Revaluations 5 9 0.93 912.73 1,038.76

Return on
Assets
Including 525.2 594.6
Revaluations 5 9 0.93 912.73 1,038.76
Management
Efficiency Ratios

Interest
Income /
Total Funds 7.94 8.27 8.82 8.88 8.52

Net Interest
Income /
Total Funds 3.71 3.85 3.87 3.79 3.82

Non Interest
Income /
Total Funds 0.3 0.19 0.14 0.11 0.1

Interest
Expended /
Total Funds 4.23 4.42 4.96 5.09 4.69

Operating
Expense /
Total Funds 2.34 2.39 2.16 2.06 2.38

Profit
Before
Provisions /
Total Funds 1.52 1.54 1.74 1.75 1.46
 43

Net Profit /
Total Funds 0.92 0.86 1.04 1.08 0.91

Loans
Turnover 0.16 0.15 0.15 0.16 0.15

Total
Income /
Capital
Employed
(%) 8.24 8.46 8.96 8.99 8.62

Interest
Expended /
Capital
Employed
(%) 4.23 4.42 4.96 5.09 4.69

Total Assets
Turnover
Ratios 0.08 0.08 0.09 0.09 0.09
Asset
Turnover
Ratio 5.1 5.44 6.32 7.2 7.26
Profit And Loss
Account Ratios

Interest
Expended /
Interest
Earned 56.32 59.35 65.23 67.28 66.66

Other
Income /
Total
Income 3.6 2.25 1.56 1.18 1.21

Operating
Expense /
Total
Income 28.37 28.19 24.13 22.91 27.61
 44

Selling
Distribution
Cost
Composition 0.28 0.2 0.3 0.33 \0.26
Balance Sheet
Ratios
Capital
Adequacy
Ratio 11.88 12.34 13.47 14.25 13.39

Advances /
Loans Funds
(%) 65.66 76.16 78.31 78.34 74.22
Debt Coverage
Ratios
Credit
Deposit
Ratio 62.11 73.44 77.51 74.97 75.96

Investment
Deposit
Ratio 48.14 38.22 34.81 36.38 36.33
Cash
Deposit
Ratio 5.15 6.22 8.29 8.37 7.56

Total Debt
to Owners
Fund 13.75 13.92 10.96 12.81 12.19

Financial
Charges
Coverage
Ratio 1.4 1.37 1.37 1.36 0.33

Financial
Charges
Coverage
Ratio Post
Tax 1.25 1.22 1.23 1.23 1.21
Leverage Ratios
 45

Current
Ratio 0.05 0.05 0.07 0.04 0.04

Quick Ratio 5.5 6.52 6.15 5.74 9.07

Cash Flow
Indicator Ratios

Dividend
Payout
Ratio Net
Profit 19.06 18.98 22.64 22.9 23.36

Dividend
Payout
Ratio Cash
Profit 16.35 16.75 20.56 21.1 21.2
Earning
Retention
Ratio 80.93 80.97 77.33 77.11 105.61

Cash
Earning
Retention
Ratio 83.64 83.21 79.41 78.88 78.82

Adjusted
Cash Flow
Times 74.03 84.87 72.64 75.05 79.54
Mar Mar Mar
'06 '07 '08 Mar '09 Mar '10

Earnings 106.5
Per Share 83.73 86.29 6 143.67 144.37

Book 525.2 594.6 776.4

Value 5 9 8 912.73 1,038

ANALYSIS MEANING:
 Absolute figures expressed in financial statements by themselves are
meaningfulness.
 These figures often do not convey much meaning unless
expressed in relation to other figures.
 Thus, it c can be say that the relationship between two figures, expressed in
arithmetical terms is called a ratio.
 46

ANALYSIS:-Book value in year 2010 is 1038 which is quite more than last five years. Dividend
payout Ratio Cash profit 21.20.Net profit ratio is 0.91 which is less than last five years.

Capital Structure
Period Instrument Authorized Capital Issued Capital - PAIDUP-
From To (Rs. cr) (Rs. cr) Shares (nos) Face Value Capital
2009 2010 Equity Share 214.75 214.75 634882644 10 214. 75
2008 2009 Equity share 214.75 214.75 634880222 10 214.75
2007- 2008 Equity Share 214.75 214.75 631470376 10 214.75
2006 2007 Equity Share 214.75 214.75 526298878 10 214.75
2005 2006 Equity Share 214.75 214.75 526298878 10 214.75
2004 2005 Equity Share 214.75 214.75 526298878 10 214.75
2003 2004 Equity Share 214.75 214.75 526298878 10 214.75
2002 2003 Equity Share 214.75 214.75 526298878 10 214.75
2001 2002 Equity Share 214.75 214.75 526298878 10 214.75
2000 2001 Equity Share 214.75 214.75 526298878 10
214.75
1999 2000 Equity Share 214.75 214.75 526298878 10
214.75
1996 2000 Equity Share 214.75 214.75 526298878 10
214.75
1995 1996 Equity Share 214.75 214.75 474009872 10
214.75
1994 1995 Equity Share 214.75 214.75 474009189 10
214.75
1993 1994 Equity Share 214.75 214.75 473828726 10
214.75
1991 1993 Equity Share 214.75 200 20000000 100 200

ANALYSIS:- Face value is same during the years i.e. 10 .paid up shares changes which are more in
year 2009-2010 i.e. 634882644 as compared to past years.

COMPARISION BETWEEN
HDFC BANK SBI BANK

Increase in owners value i.e. 32.36 increase in reserves is 800.15 in year march 2010 as
In year march 2010 as compared compared to year 2009
To year 2009.that means it is beneficial
For hdfc bank.

Increase in reserve & surplus increase in net worth i.e. 62043.1

I.e. are 6838.32 as compared year 2009

Increase in gross block i.e. 751.34 increase in bal.RBI i.e. 5744.53

Increase in total assets i.e. 1909.14 increase in investments i.e. 9836.11
 47

Account opening balance is account opening balance is500RS

5200Rs
ANALYSIS:
As we know that SBI is a Public Sector Bank. So its Brand image is much higher than any other
private Competing Bank. And under this analysis also the SBI has very strong financial position in
comparison to HDFC bank on the basis of (Total Assets and Reserves, Net Worth, The future
Investments.) are 51,429.00. Which are quite more than SBI bank? So from the above information I
analyzed that liabilities are high in public sectors but assets are also. And the satisfaction level is also
more. in public sectors normal person that have low income can invest .but in private bank like hdfc
only that person invest which have high income because its account opening balance is 5200Rs.
This is too high as compared to state bank of India.

COMPARISION OF SHARE CAPITAL OF HDFC& SBI:-

ANALYSIS;-

SWOT ANALYSIS OF HDFC BANK

STRENGTH
 Right strategy for the right products.
 Superior customers services vs. competitors
 Great brand image
 Product have required accreditations
 Good place to work
 Dedicated workforce aiming at making a long term career in the field.
 48

WEAKNESS
 Some gaps for range in certain sectors
 Customer service staff needs training.
 Management cover insufficient.
 Sectoral growth is constrained by low unemployment levels and competition for staff.

OPPORTUNITIES:-
 Profit Margin will be good.
 Could extend to overseas broadly
 New specialist applications
 Could seek better customer deals

THREATS
 Legislation Could impact
 Great risk involved
 Very high completion prevailing in the industry
 Vulnerable to reactive attack by competitors.
 Lack of infrastructure in rural areas could constrain investment.

SWOT ANALYSIS OF SBI BANK

STRENGTH

 Brand name
 Market Leader
 Wide Distribution Network
 Government Owned
 Diversified Portfolio

WEAKNESS
 Minor hindrances
 Hierarchical management
 Lags modernization

Opportunities

 Merger of associate banks with SBI

 Opportunities for public sector banks
 New Branches and ATM's
 49

 Expansion on Foreign soil

Threats
 Advent of MNC banks
 CRM Private banks venturing into the rural
 Employee Strike

COMBINED SWOT ANALYSIS OF HDFC AND SBI

 Strength of Bank is Direct Banking channels. As Direct banking channels saves time and
money both as a customer does not need to go to bank for any kind of transaction except
cash withdrawal and cash deposits all other things are done sitting anywhere in the world.
 State Bank of India (SBI) is the leading commercial bank in India, offering services such as
retail banking, commercial banking, international banking and treasury operations. The bank
is an integral part of State Bank Group, which includes seven other banks and offers
additional services such as mutual funds and insurance. The bank primarily operates in India.
It is headquartered in Mumbai, India and employs about 205,896 people. The bank recorded
revenues of INR335, 639.3 million (approximately $6,484.6 million) in the financial year
(FY) ended March 2009, an increase of 30.5% over FY2008. The operating profit of the
company was INR179, 152.3 million (approximately $3,461.2 million) in FY2009, an
increase of 36.7% over FY2008. The net profit was INR91,212.4 million (approximately
$1,762.2 million) in FY2009, an increase of 35.5% over FY2008.All services or products of
HDFC
Bank is available through direct banking channels.
 Free ATM, Net Banking, Mobile Banking, Phone Banking and 24 hours services.
 Very easy to access and use.
 A highly personalized services provided by the bank.
 HDFC’s Direct Banking channels provide real time and accurate information.
 HDFC’s Direct Banking is user friendly any one can easily operate it.
 Now International Debit Card is Free for one year.
 The Bank has strategic business alliance with Chase Manhattan Bank, largest bank of USA.
WEAKNESS:
 Unawareness about all Direct Banking Channels due to less advertisement.
 Other private banks have started direct banking channels it may put some competition to
HDFC Bank in near future. Resistance to Change.
 One should have the knowledge of the operations of the computers and of course the Internet.
OPPURTUNITIES:
 As Nationalized Banks and Co-operative Banks do not provide Direct Banking services, so
HDFC Bank can attract more customers.
 Centralized banking makes easy for HDFC Bank to provide services to customers.
 Huge market of shareholders.
 50

THREATS:
 Competition from other private sector banks.
 Attacks of web hackers.
 Personalized attention i.e. relationship banking should be reduced, thus by creating a distance
between the bank and its customers.

(2 .7) Financial status of the bank

Price and Volume

PICTURES OF BANKS IN EARLY DAYS

 51

INTERNET BANKING
 He Internet banking portal of our bank enables its retail banking customers to operate their
accounts all across India, removing the restrictions imposed by geography and time. It's a platform
that enables the customers to carry out their banking activities from their desktop, aided by the power
and convenience of the Internet.
 Availing the Internet banking services, you can do the following normal banking transactions
online:
 Self-account funds transfer across India.
 Third party transfers in the same branch
 New account opening

 Demand Draft requests

 Standing instructions
 New Cheques-book request and much more.
 Apart from these, the other salient value-added features available are:
 Railway tickets booking,
 Utility bill payments
 LIC and other insurance premia payments,
 SBI Mutual funds Investments
 Remit Subscription to PPF account,
 Credit card dues payments,
 52

 Deposit your taxes,

 Donations to your religious inspirations
 Donations to Red Cross and such other organizations
 Setting up SMS alerts for transaction information.
 Truly smart services to cover most of your banking transactions. Above all, you can transfer
funds between your accounts held at several locations. All this and much more from your desktop.

TERMS OF SERVICE:-

General Information:
1. The registration form(s) should be addressed and sent directly to the Branches where the
applicant(s) maintain his/her/their account(s).
2. Separate registration is required in case the accounts are maintained at different branches.
Separate registration is allowed for single and joint accounts at the option of the user.
3. Normally the account holders can access his accounts through the only after he/she acknowledges
to the respective Branch (es) the receipt of the User-Id and Password sent to him/her.

Bank’s Terms:
1. All requests received from the USERS are logged and transmitted to the User’s Branch for their
fulfillment. The requests become effective from the time these are recorded/ registered at the
respective branch. While registering the request, the USER is informed about the time normally
taken by the Bank for fulfillment such requests.
2. The rules and regulations applicable to the banking transactions done in the traditional way in
India will be applicable mutatis mutandis for the transactions done through the service.
3. Disputes between the registered USER of this service and the Bank with regard to the transactions
done the jurisdiction of the competent Courts where the branch maintaining the relative account of
the user is located and will be governed by Indian Laws in force from time to time.
4. The Bank will take reasonable care to make use of the available technology for ensuring security
and preventing unauthorized access to any of the services offered

5. The service is a ‘VeriSign’ certified secure site. It assures that during the session user is dealing
with web-site of SBI. The two-way communication is secured with 128-bit SSL encryption
technology, which ensures the confidentiality of the data during transmission. The access-control
methods designed on the site afford a high level of security to the transactions conducted.

6. It is proposed to implement, in due course, the PKI (Public Key Infrastructure)/Digital Signature
technology for the Service.

7. The Bank reserves the right to modify, change, add or cancel any of the services offered through
or the Terms of Service listed in this Document without prior notice to the Users. The changes will
be notified to the users / customers through a notification on the site.
User’s Obligations:
1. The User-Id and the Password given by the Bank must be replaced by User Name and Password of
the USER if free to choose at the time of FIRST log-in. This is Mandatory.

2. The registered USER is free to choose a User Name and Password of his choice as per the
guidelines on the site. However, he/she is advised to avoid choosing a password that is generic in
 53

nature, guessable/inferable from the personal data such as name, date of birth, address, telephone
number, driving licence/car number etc.

3. The USER is welcome to access from anywhere anytime. However, as a matter of precaution and
safety, he should avoid using PCs with public access.

4. There is no way to retrieve the Password from the system. In case the USER forgets his/her
Password, he/she will have to approach the branch for re-registration.

5. The USER must keep the user name and Password strictly confidential and known only the
himself/herself. It is a good practice to commit the password to memory rather than write it down
somewhere. Bank will not be responsible for any loss sustained by the USER due to breach of this
condition.

6. The Bank presupposes that log-in using valid user name and Password is a valid session initiated
by none other than the USER to whom the said user name and Password belongs.

7. All transactions executed through a valid session as defined above will be construed to have been
emanated from the registered USER and will be legally binding on him/her. The USER is cautioned
against leaving the computer unattended during a valid session.

8. Should the USER notice that any information relating to his/her account(s) is incorrect or
discrepant the same should be immediately brought to the notice of the Branch (es) by e-mail or
letter?

9. The USER will not attempt or permit others to attempt accessing through any unlawful means.

1) SAFE DEPOSIT LOCKER

For the safety of your valuables we offer our customers safe deposit vault or locker facilities at a
large number of our branches. There is a nominal annual charge, which depends on the size of the
locker and the centre in which the branch is located.
2) EDUCATION LOAN
 A term loan granted to Indian Nationals for pursuing higher education in India or abroad
where admission has been secured.
 Eligible Courses
 All courses having employment prospects are eligible.
 Graduation courses/ Post graduation courses/ Professional courses
 Other courses approved by UGC/Government/AICTE etc.
 Expenses considered for loan
 Fees payable to college/school/hostel
 Examination/Library/Laboratory fees
 Purchase of Books/Equipment/Instruments/Uniforms
 Caution Deposit/Building Fund/Refundable Deposit (maximum 10% tuition fees for the
entire course)
 Travel Expenses/Passage money for studies abroad
 54

 Purchase of computers considered necessary for completion of course

 Cost of a Two-wheeler upto Rs. 50,000/-
 Any other expenses required to complete the course like study tours, project work etc.
 Amount of Loan
 For studies in India, maximum Rs. 10 lacs
 Studies abroad, maximum Rs. 20 laces

3) FOREIGN CURRENCY NON-RESIDENT DEPOSIT ACCOUNTS

 FCNR accounts can be opened only by an NRI.
 Can be opened jointly with another NRI.
 Nomination Facility available. (Nominee can be a resident Indian also).
 Deposits can be opened in US$, Euro, Sterling Pounds Canadian Dollars Australian
Dollars and Japanese Yen.
 The minimum period of deposit is one year and maximum period is 5 years.
 Premature withdrawal permissible subject to 1% penal interest.
 No interest is payable if the deposit is closed within a year.
 Rupee loans can be taken in India against the security of the deposit.
 By the depositor(s)
 By third parties
 Foreign currency loans can be availed abroad against the security of FCNR deposits

4) E-RAIL

Book your Railways Ticket Online.

The facility has been launched Its September 2003 in association with IRCTC. The scheme
facilitates Booking of Railways Ticket Online. The salient features of the scheme are as under:
1. All Internet banking customers can use the facility.

2. You are required to register on. You can select your train depending on your journey and book
your ticket online.

3. On giving payment option as SBI, the user will be redirected to onlinesbi.com. After logging on to
the site you will be displayed payment amount, TID No. and Railway reference no.

4. On selecting the payment amount your account will be debited... The ticket with PNR No. will be
displayed.

5. The ticket can be delivered or collected by the customer.

6. The user can collect the ticket personally at New Delhi reservation counter.
 55

7. The Payment amount will include ticket fare including reservation charges, courier charges and
Bank Service fee of Rs 10/. The Bank service fee has been waived upto 31st July 2006.

8. For cancellation, the has ticket to be presented over reservation counter.

9. No cash will be paid at the time of cancellation. Only cancellation ticket will be issued. Your
account will be credited after 4 days.

10. SBI shall not be responsible for any delays or disputes regarding tickets.

Recommendations
 The banks should come forward with more meaningful advertisements and awareness
campaigns to create awareness among customers regarding banking services and to make the
banking sector popular among the entire age and income group.
 Systems should be simple to use, fast and user friendly. Service should be standardized so
that wherever the solution is used the customer is familiar with the procedure followed.
Customers should have ready sources of advice, whether this is through call centers, through
publicity or through physical presence.
 Banking services should be designed to reduce the cost of transactions for the financial
institution as much as to deliver value to the customer. However, banking services can be
designed to give more and more benefits to the customers. Added-value services can be
provided such as loyalty programmes, person-to-person transfers, airtime top up for mobile
phones and government payments.
 Banking services should be user friendly. Banks should offer banking services by the way of
convenience and reach so that it should be popular among all the age groups.
 IN banks there is need to provide goo training to their employees.

Conclusion
Most of the people are aware of the services given by the both banks either HDFC or SBI. New
generation people mostly the students taking the advantage of the private banks services. Only the
educated people are fully aware of the private banks services. Here, advertisement play a major in
making people aware of the services offered by the different banks.Srevices given to the senior
citizen really attracts them people age group more than 60.they get more F.D rates as compares to the
public banks and also get the 50000 RS accidental insurance . As we know that SBI is a Public
Sector Bank. So its Brand image is much higher than any other private Competing Bank. And under
this analysis also the SBI has very strong financial position in comparison to HDFC bank on the
basis of (Total Assets and Reserves, Net Worth, The future Investments.) are 51,429.00. Which are
quite more than SBI bank? So from the above information I analyzed that liabilities are high in
 56

public sectors but assets are also. And the satisfaction level is also more. in public sectors normal
person that have low income can invest

BIBLIOGRAPHY
BOOKS
Jain.T.R, Statistics for MBA, 2nd Edition
T.R Jain, banking and insurance
Meidan Arthur(1983), “To find the location of the banks” Journal of management studies
,December 1983, Volume :32.

Cowell D.W( 1990), Find out the nature of banking and their objectives..”Journal of organization.
Volume:21.

Samiloglu F.and Demirgunes K. (2008), “To analyze the effect of working capital management on
firm profitability”, Journal of Management Studies, Mar 2008, Volume: 40 Issue: 2 pp.225-255.

Yilei , Zhang,Beneda, Nancy, (2008), “Impact of working capital management on the operating
performance and growth of new public companies”, Accounting, Organizations and Society, Jul
2008, Volume: 28 Issue: 5 pp.417-441.

Michael J. Peel, Wilson Nicholas (2008), “the working capital and financial management practices
of a sample of small firms located in the north of England”, Volume 18 Professor Marc Epstein and
Professor John Y. Lee issue.3.

Yilei , Zhang,Beneda, Nancy, (2008), “Impact of working capital management on the operating
performance and growth of new public companies”, Accounting, Organizations and Society, Jul
2008, Volume: 28 Issue: 5 pp.417-441.

Michael J. Peel, Wilson Nicholas (2008), “the working capital and financial management practices
of a sample of small firms located in the north of England”, Volume 18 Professor Marc Epstein and
Professor John Y. Lee issue.3.

Munich /Stuttgart( 2009)“working capital management: Optimizing current assets helps tap into
cash potential and build buffers against insolvency”,Volume: 18 Editor(s): Professor Marc Epstein
and Professor John Y. Lee ISBN: 978-1-84950-754-7.

E Yeldon (2009) “Make your working capital work”, Accountancy, Jun 2009, Volume: 121 Issue:
1258 pp.126-128.

P McCosker (2009), “A capital idea (working capital)”, Management Accounting (UK), May 2000,
Volume: 78 Issue: 5 pp.

Munich /Stuttgart( 2009)“working capital management: Optimizing current assets helps tap into
cash potential and build buffers against insolvency”,Volume: 18 Editor(s): Professor Marc Epstein
and Professor John Y. Lee ISBN: 978-1-84950-754-7.
 57

E Yeldon (2009) “Make your working capital work”, Accountancy, Jun 2009, Volume: 121 Issue:
1258 pp.126-128.

P McCosker (2009), “A capital idea (working capital)”, Management Accounting (UK), May 2000,
Volume: 78 Issue: 5 pp.

M K(Kolay 2010), “Managing working capital crises”, Management Decision, Aug 1991, Volume:
29 Issue: 5 pp.46.

WEBSITES

REFRENCES:-
1. www.hdfcbank.com
2. www.sbi.co.in
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