SESSION 2017-18

A
PROJECT REPORT
ON

A STUDY ON CONSUMER SATISFACTION

OF ACC CEMENT
For the partial Fulfillment for the Degree of
Master of Business Administration

submitted to submitted by
MR. ASHISH JAIN AKASH SAHU
mba II sem.

1
 SESSION 2017-18
A
PROJECT REPORT
ON

A STUDY ON CONSUMER SATISFACTION

OF PEPSI
For the partial Fulfillment for the Degree of
Master of Business Administration

submitted to submitted by
MR. ASHISH JAIN AMIR ALI
mba II sem.

PREFACE

2
 Preparing a project of this nature is an arduous task and I was
fortunate enough to get support from a large number o persons. I
wish to express my deep sense of gratitude to all those who
generously helped in successful completion of this report by sharing
their invaluable time and knowledge.

It is my proud and previledge to express my deep regards to

Respected HOD Mrs. Neha Dubey, Head of Department of Business
Management , SVNU, SAGAR for allowing me to undertake this
project.

I feel extremely exhilarated to have completed this project under

the able and inspiring guidance of MR. GOURAV AGRAWAL
rendered me all possible help me guidance while reviewing the
manuscript in finalising the report.

I also extend my deep regards to my teachers , family members ,

friends and all those whose encouragement has infused courage in
me to complete to work successfully.

KARISHMA CHHATRIYA
MBA IV SEM.

ACKNOWLEDGEMENT

3
 Preparing a project of this nature is an arduous task and I was fortunate
enough to get support from a large number o persons. I wish to express my
deep sense of gratitude to all those who generously helped in successful
completion of this report by sharing their invaluable time and knowledge.

It is my proud and previledge to express my deep regards to Respected ,

Head of Department Mrs. Neha Dubey, Department of Business Management

, SVNU, SAGAR for allowing me to undertake this project.

I feel extremely exhilarated to have completed this project under the able
and inspiring guidance of He rendered me all possible help me guidance while
reviewing the manuscript in finalising the report.

I also extend my deep regards to my teachers , family members , friends

and all those whose encouragement has infused courage in me to complete to
work successfully.

KARISHMA CHHATRIYA
MBA IV SEM.

4
 DELCLARATION BY THE
CANDIDATE
Date :

I declare that the project report titled " A STUDY ON

PERFORMANCE EVALAUTION OF HDFC AND INDIAN BANK on
Market Segmentation is nay own work conducted under the supervision of
MR. GOURAV AGRAWAL. To the best of my knowledge the report does
not contain any work , which has been submitted for the award of any
degree , anywhere.

KARISHMA CHHATRIYA
MBA IV SEM.

5
 CERTIFICATE

The project report " A STUDY ON PERFORMANCE

EVALAUTION OF HDFC AND INDIAN BANK been prepared by

KARISHMA CHHATRIYA MBA IV SEM. of MR. GOURAV
AGRAWAL for the partial fulfillment of the Degree of MBA

Signature of the Signature of the Signature of the

Supervisor Head of the Department Examiner

6
 Introduction
 Objective
 Research methodology
 Training
 Development
 Analysis and Interpretation
 Findings
 Suggestions
 Conclusion
 Appendix
 Bibliography

7
 INTRODUCTION PERFORMANCE APPRAISAL
What is Performance Appraisal?
A “Performance Appraisal” is a process of evaluating an employee’s
performance on jobs in terms of its requirements or we may call it a
postmortem of a subordinate's performance by his superior during a
predetermined period of time, often the proceeding year.
It is systematic evaluation of the individual with respect to his or her
performance on the job and his or her potential for development for growth.

According to Hegel-
“ It is the process of evaluating the performance and qualification of the
employee’s in terms of the requirements of the job for which he is employed,
for the purpose of administration including placement, selection for promotion,
providing financial reward and other actions which requires differential
treatment among the member of a groups as distinguished from action all
members equally.”

Advantages Of Performance Appraisal

Performance Appraisal replaces casual expert with formal, systematic
procedures. Employees know they are being evaluated and are told the criteria
that will be used in the course of arrival. It offers competitive advantage to a
firm by improving performance, help making correct decisions, ensuring legal
compliance, minimizing job dissatisfaction & employee's turnover and ensuring
consistency between organizational strategy and behavior.
In BARS method, employee’s behavior is measured. This method aims at
specific dimensions of job performance. It is said to be behaviorally anchored
as the scale represent a range of descriptive statements of behavior varying
from the least to the most effective.
IMPORTANCE AND PURPOSE
Performance Appraisal has been considered as a most significant and
indispensable tools for an organization. It is highly useful in making decisions
regarding various personal aspects such as promotion and incentives to be
given.
Accurate information plays a vital role in organization as a whole. They
help to pinpoint weak areas in the primary system (e.g. Marketing, Finance and
Production).

8
 It is easy for manager to see which employee's need for training or counseling
because jobs are grouped by categories.
If valid performance data are available; timely, accurate, objectives,
standardization, and relevant management can maintain consistent promotion
and compensation policies throughout the total system.
 To effect promotions based on compensation & performance.
 To confirm the services of probationary employees upon whether they are
completing the probationary period satisfactorily.
 Access the training and development needs of employees.
 To decide upon a pay rise.
 To let the employees know, where they stand so far, as their performance
is concerned and to assess them with constructive criticism and guidance
for the purpose of their development.
 To improve communication.
 To evaluate whether HR programs such as selection, training, transfers
are being effective or not.

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APPRAISAL PROCESS IN HDFC

Objective of Performance Appraisal

Establish job expectation

Design an Appraisal Program

Appraise Performance

Performance Interview

Use Appraisal data for appropriate

purpose

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WHAI IT ACHIEVES?
Performance Appraisal system aims at achieving the following objectives
of employee’s development:
1. Training and Development of individuals.
2. Improving efficiency and effectiveness.
3. Involvement of the review in his self-development.
4. To lay basis for maximum objective advancement/promotion.
5. To lay basis for career planning.
6. To identify exceptional talents for special assignment.
7. To understand the strengths and weaknesses of the subordinates and help
them to realize this.
8. To understand the difficulties of their subordinates and try to remove
them.
9. To encourage subordinates to accept more responsibilities.
10.To help the subordinates to become aware of the prevailing conditions.
11.To help subordinates to acquire new capability.
Performance Appraisal is common in government as well as in private
sector in the form of “Annual Confidential Reports”. However in private
industries more systematic performance appraisal also called “Merit Rating or
Employees Rating” has been developed.
These appraisals are often needed as a basis of selecting candidates
for promotion for better jobs; hence, sometime it may also be called
“Potential Appraisal”. There are also so many methods of performance
appraisal and out of them three are major namely;
 The free report
➢ The checklist
➢ The analysis of critical incidents
An appraisal might ask from the assigning officer to consider the
following attributes and characteristics:
(a) Knowledge of skills/formal qualifications, utilized during the review
period.
(b) Abilities to delegate/plan supervision.
(c) Personal qualities; appearance, personality, deposition, enthusiasm,
compatibility with colleagues, physical makeup, health.
(d) Establish priorities, assume responsibilities, cope with stress,
exercise/leadership.

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 (e) Critical analysis like creativity, judgmental, problem solving and decision
taking abilities.

TECHNIQUES OF PERFORMANCE APPRAISAL

Broadly there are some following appraisal techniques:-
RATING BY SUPERVISOR:-
a) This can be done by several methods like graphic rating scale,
under it; each person is rated with the help of printed form. The
rater can mark at any point on the scale according to his
evaluation.
b) In forced distribution system, the employees are rated only on two
characteristics i.e. job performance and profitability.
c) In ranking, it involves arranging individual in order of the merit
for particular characteristics.
d) In free written rating, the supervisor describes the subordinate's
performance and feels how good it is. This method is simple but
time consuming.
e) In forced choice appraisal, there are some choice and superior are
asked to give one choice which best suits the subordinate.
f) In critical method, the appraiser makes rates of the positive
instances on the job performance as well as indicates instances
soon after the event had occurred.

RATING BY SELF OR GROUP:-

In self-appraisal a person appraises himself on a form provided and
in group appraisal; a group of persons appraises an individual.

THE FIELD REVIEW TECHNIQUE:-

In this method, a personnel man goes to the field to obtain
information about the work of the individual employee. He asks
questions and informally converse with appraiser of the persons who are
being evaluated. Replies or answers are noted by the personnel man. It
does not include any paper work and is linked to the appraiser

APPRAISAL USING PERFORMANCE STATISTICS:-

In recent times quantitative methods are being supported for rating. Here
standards of performance are used for appraisal, subordinates may be made
profit centers and their performance is appraised as per their achievements.
Standards are prepared for each activity.

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FORCED CHOICE METHOD:-
It contains a series of group of statements and the rater checks out
effectively the statement describing each individual being evaluated. Contents
of both the statements may be positive or negative. Though both of them
describe the feature of an employee, the rater is forced to mark only one, which
appears to be more descriptive.

MANAGEMENT BY OBJECTIVE (MBO):-

MBO has become a popular method of planning, setting standards,
motivating and appraising performance. MBO makes comparative
assessment of multiple personnel rather difficult while in traditional methods
all persons are rated on common factors.
In MBO each person will have different set of goals of non-comparable
complexity and difficulty of accomplishment. Management may make various
decisions on a comparative basis.

360-DEGREE FEEDBACK:-
360-Degree method provides a wider perspective about an employee’s
performance. In such a method, employee is evaluated by himself, his
peers, his superiors and his subordinates too. This brings with it a
circular assessment of the individual.

BEHAVIORALLY ANCHORED RATING SCALE:-

These are rating scales whose scale points are fixed by statement of
effective and ineffective behavior. They represent a range of descriptive
statements of behavior varying from least to most effective. Scales are
anchored by description of actual job behavior.

ASSESSMENT CENTRES:-
It is a central location where manager come together to have participation
in job related exercises evaluated by trained observer.

13
PERFORMANCE APPRAISAL IN HDFC

14
 OBJECTIVES OF PERFORMANCE APPRAISAL
➢ The aim of performance appraisal is to encourage employees to set his
objectives for the next time period following his past performance in
order to improve his performance on the job.
➢ These objectives should be mutually agreed, for twelve months, as far as
every employee should be aware of transaction objectives, since they
provide a basis for individual’s performance objectives.
➢ The other basis is the appraisal on the wish of employee himself, in order
to set worthwhile objectives, it is necessary.
➢ Objectives of Appraisal includes effective promotions and transfers,
assess training needs etc.
➢ These objectives are appropriate as long as the approach in individual.
Appraisal in future would assume system orientation.
➢ In system's approach, appraisal aims at improving the performance
instead of merely assessing it.
➢ Emphasis is not on individual assessment, rewards or punishment, but it
is on how the work system affects the individual performance.

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 RESEARCHMETHODOLOGY OF THE STUDY
The research instrument or the tool used by us for collecting data is
QUESTIONNAIRE. Questionnaires like a sample form consisting of several
forms. Officers are asked to fill these questionnaire and answer the questions.
The questions easy to understand and in such a way that the answer can be
given in the form of YES or NO or in the simple queries or in the multiple
choice. We offered our respondents a no. of specific alternatives from which
they were asked to choose one or more through specific information. All these
served us a helping hand in the exploratory stages our research .
In our study various tables & pie diagrams are drawn, these diagrams help us to
calculate the percentage of responses .Thus it is easier to know officers opinion
about the E-PMS.
HYPOTHESIS
PROBLEM IDENTIFIED:- “The employees in HDFC are satisfied with the
existing programs or not.”
NULL HYPOTHESIS:- “The employees are satisfied”.
ALTERNATIVE HYPOTHESIS:- “The employees are not satisfied”.
TOOLS AND TECHNIQUES USED:
Tools and techniques mean the methods and ways that how the data for the
research is collected and analyzed in order to fulfill the objective of the research
work.
DATA COLLECTION:
Primary Data :- 1) Through questionnaire

Secondary Data :- 1) Through weekly journal- Duran

2) Through monthly journal- Grahpatrika

3) www.hdfcbank.com

Literature survey :- Administration staff .

ANALYSIS OF DATA

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The data after collection, has to be processed and analyzed in accordance with
the objective laid down for the purpose of the research work. This is essential
for ensuring that we have all relevant data for making analysis. The term
analysis refers to the computation of certain measures like editing, coding,
classification and tabulation of collected data so that they are amendable to
analysis along with searching for patterns of relationships that exists among
data- groups.
There are various methods of analyzing the data. But in this Research
Reportwork, I used Pie charts and Bar charts for analyzing the collected data,
which is using Excel Sheet. In this Research Reportwork, Pie charts & Bar
charts are prepared with the help of collected with the help of Questionnaire.
The graphical presentation of the data is helpful in understanding each & every
aspect of the collected data very easily.

INTRODUCTION OF HDFC BANK

17
HDFC started its there operation way back in year 1977 with an aim to provide
houses to individuals. The era between the independence to 1977 no
financial institution is providing detailed house loan. ‘Mr. Ketan Parekh’
formerly founder of HDFC started the company with a public issue of Rs 7
per unit share. Campaigning the share prices of Rs 570 even in this period
of twenty-seven years can assess the growth of the group. Thrice the market
crash only few companies are able to maintain their growth vis-à-vis.
Customer satisfaction, roughly around twenty one lac houses are into the
process of repayment of their housing loan to HDFC. HDFC as a group has
diversified themselves into various finance related business including
Banking & Depository Services, Portfolio Management, Credit Information
Bureau, Life and General Insurance, not only making the ship wider but to
run it properly and profitability. The aim of this study is not to understand
the working but the inside core of their processes and culture. Now we will
discuss all their core business separately and at last but not the least we go
through to understand their newly ventured Life Insurance business.

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. The bank was incorporated in August
1994 in the name of 'HDFC Bank Limited', with its registered office in
Mumbai, India. HDFC Bank commenced operations as a Scheduled
Commercial Bank in January 1995.

Promoted in 1995 by Housing Development Finance Corporation (HDFC),

India's leading housing finance company, HDFC Bank is one of India's premier
banks providing a wide range of financial products and services to its over 15
million customers across hundreds of Indian cities using multiple distribution
channels including a pan-India network of branches, ATMs, phone banking, net
banking and mobile banking. Within a relatively short span of time, the bank
has emerged as a leading player in retail banking, wholesale banking, and
treasury operations, its three principal business segments.

The bank’s competitive strength clearly lies in the use of technology and the
ability to deliver world-class service with rapid response time. Over the last 13
years, the bank has successfully gained market share in its target customer
franchises while maintaining healthy profitability and asset quality.

18
As of March 31, 2009, the Bank had a distribution network with 1,412 branches
and 3,295 ATMs in 528 cities.

For the quarter ended March 31, 2009, the Bank earned total income of INR
53.65 billion (Rs.5,365.5crore) as against INR 35.05 billion (Rs.3,505.5crore)
in the corresponding period of the previous year. Net revenues (net interest
income plus other income) for the quarter ended March 31, 2009 were INR
29.66 billion (Rs.2,966.7crore), up by 35.4% over INR 21.91 billion
(Rs.2191.4crore) for the quarter ended March 31, 2008. Net Profit for the
quarter ended March 31, 2009 was INR 6.30 billion (Rs.630.9crore), up by
33.9% over the corresponding quarter ended March 31, 2008.

The Bank’s total balance sheet size increased by 37.6% from INR 1331.77
billion (Rs. 133,177 crore) as of March 31, 2008 to INR 1832.71 billion
(Rs.183,271crore) as of March 31, 2009. Total deposits were INR 1428.12
billion (Rs.142,812crore), an increase of 41.7% from March 31, 2008.

Total income for the year ended March 31, 2009 grew by 58.2% to INR 196.22
billion (Rs19622.9crore) over the corresponding year ended March 31, 2008.
Leading Indian and international publications have recognized the bank for its
performance and quality Helping Indians experience the joy of home
ownership. The road to success is a tough and challenging journey in the dark
where only obstacles light the path. However, success on a terrain like this is
not without a solution.

As we found out nearly three decades ago, in 1977, the solution for success is
customer satisfaction. All you need is the courage to innovate, the skill to
understand your clientele and the desire to give them your best.
Today, nearly three million satisfied customers whose dream we helped realise,
stand testimony to our success.
Our objective, from the beginning, has been to enhance residential housing
stock and promote home ownership.
Now, our offerings range from hassle-free home loans and deposit products, to
property related services and a training facility.
We also offer specialized financial services to our customer base through
partnerships with some of the best financial institutions worldwide.

19
 COMPANY PROFILE

The Composition of the Board of Directors of the Bank is governed by the

Companies Act, 1956, the Banking Regulation Act, 1949 and the listing
requirements of the Indian Stock Exchanges where securities issued by the
Bank are listed. The Board has strength of 12 Directors as on March 31, 2008.
All Directors other than Mr. AdityaPuri, Mr. Harish Engineer and Mr. Paresh
Sukthankar are non-executive directors. The Bank has five independent
directors and six non-independent directors. The Board consists of eminent
persons with considerable professional expertise and experience in banking,
finance, agriculture, small scale industries and other related fields.

 None of the Directors on the Board is a member of more than 10 Committees and
Chairman of more than 5 Committees across all the companies in which he/she is a
Director. All the Directors have made necessary disclosures regarding Committee
positions occupied by them in other companies.

- Mr. JagdishCapoor, Mr. KekiMistry, Mrs. RenuKarnad, Mr. AdityaPuri, Mr.

Harish Engineer and Mr. PareshSukthankar are non-independent Directors on
the Board.
- Mr. ArvindPande, Mr. AshimSamanta, Mr. Gautam Divan, Mr. C. M.
Vasudev and Dr. PanditPalande are independent directors on the Board.
- Mr. KekiMistry and Mrs. RenuKarnad represent HDFC Limited on the
Board of the Bank.
- The Bank has not entered into any materially significant transactions during
the year, which could have a potential conflict of interest between the Bank
and its promoters, directors, management and/or their relatives, etc. other than
the transactions entered into in the normal course of business. The Senior
Management have made disclosures to the Board confirming that there are no
material, financial and/or commercial transactions between them and the Bank
which could have potential conflict of interest with the Bank at large.
Details of the Board of Directors in terms of their directorships/memberships in
committees of public companies (excluding HDFC) as on November 20, 2009
are as under.

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Dr. J. J. Irani has been appointed as a special director under Articles 125 and
126 of the Articles of Association of the Corporation w.e.f. January 18, 2008.
* Independent directors have confirmed having met the criteria laid under
Clause 49(I)(A)(iii) of the listing agreements.
** Directorships do not include alternate directorships, directorships of private
limited companies and of companies incorporated outside India.
*** In terms of Clause 49 (I)(C)(ii) of the Listing Agreements, a director shall
not become a member in more than 10 committees or act as Chairman of more
than 5 committees across all public companies in which he is a director. For this
purpose only Audit Committee and Investors' Grievance Committee have been
considered.
+ Categorized as an independent director w.e.f. November 14, 2008 pursuant to
his retirement as the Managing Director & Chief Executive Officer of HDFC
Standard Life Insurance Company Limited, a subsidiary of the Corporation.

21
 ORGANISATION STRUCTURE: -
HDFC is a professionally managed organization with a board of directors
consisting of eminent persons who represent various fields including finance,
taxation, construction and urban policy & development. The board primarily
focuses on strategy formulation, policy and control, designed to deliver
increasing value to shareholders.
Excluding the directorships mentioned above, Mr. Deepak S. Parekh is an
alternate director in 4 companies.
 Mr. D S Parekh - Chairman

 Mr. Keshub Mahindra - Vice Chairman

 Ms. Renu S. Karnad - Executive Director

 Mr. R V S Rao - Executive Director

 Mr. K M Mistry - Managing Director

 Mr. D M Sukthankar

 Mr. D N Ghosh

 Mr. S Venkitaramanan

 Dr. Ram S Tarneja

 Mr. N M Munjee

 Mr. D M Satwalekar

 Mr. Shirish B Patel

 Mr. Bansi S Mehta

 Dr. S A Dave

HDFC FOUNDER
Man With A Mission

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Hasmukhbhai Parekh

If ever there was a man with a mission it was

Hasmukhbhai Parekh, our Founder and Chairman-
Emeritus, who left this earthly abode on November 18,
1994.
Born in a traditional banking family in Surat, Gujarat,
Mr. Parekh started his financial career at
HarkisandassLukhmidass - 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 (HDFC). He rose to become Chairman and continued so
till his retirement in 1972.
At the ripe age of 60, Hasmukhbhai started his second dynamic life, even more
illustrious than his first. 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.

HDFC has a staff strength of 1029, which includes professionals from the fields
of finance, law, accountancy, engineering and marketing.

A soft spoken man of few words, Mr. Parekh nevertheless held strong and
definite views with a quiet conviction. He was always concerned with building
bridges, improving and encouraging communication between people.

He was also a writer in his own right. There are over 200 published articles by
him, full of incisive comments on finance and economics. In 1953 he brought
out a volume called: The Bombay Money Market. It detailed the intricate
working of the Indian money market. His works in Gujarati - HiranePatro,
HiraneVadhuPatro - occupy pride of place in Gujarati literature. In 1992, the
Government of India honoured him with the Padma Bhushan Award. The
23
London School of Economics & Political Science conferred on him an
Honorary Fellowship.
But there was much more to the man than his financial genius. In his own
unassuming way, Hasmukhbhai devoted all his life to raising resources for
philanthropic causes. He took active interest in the Bombay Community Public
Trust, designed specifically to serve the needs of the city's underprivileged
citizens.
When Mr. Deepak Parekh took over as Chairman from Hasmukhbhai, he said:
"Taking over from H.T. Parekh is a formidable task; his vision. brought about
not only an institution, but an entire concept which has proved itself to be of
lasting importance."
In his last years, developments in the financial sector brought him some
measure of satisfaction. Says HDFC Chairman, N. Vaghul: "The most gratifying
aspect about his life is that values he cherished all his life, came into reality in
the last years. opening up the financial sector, and deregulation of lending rates
were issues he stood for all his life, and this happened before he passed
away."Farewell dear Hasmukhbhai! All of us will miss not only H.T. Parekh the
financial wizard, but much more so, the man. The only and best tribute we can
pay to such an individual is to try and follow in his footsteps, keeping in mind
his high ideals and philanthropic outlook.

24
 HISTORY OF THE ORGANIZATION
HDFC stands for Housing Development Financial Corporation. It was
incorporate in year 1977 as a public limited company under company’s act 1956
as to commence its business in housing finance, i.e. to provide the financial
services such as loans, etc to the general public in respect to their requirements.
It has grown to be a leader in housing finance. It was the pioneer in housing
finance as well as the first private Sector Company in the field of housing
finance. It is the first private sector retail housing finance company. It is India’s
largest housing finance institution with an asset base of over Rs.15,000crore. It
has helped finance over 17 lakhs homes through

Its 84 branches across India, as well as it has 3 overseas Service Associates and
one International Office. HDFC is listed in both BSE and NSE with a good
price in the market. CRISIL and ICRA have awarded the ‘AAA’ rating, which is
known as the best rating in the business, to HDFC Limited, for the last six years
consecutively. HDFC Limited has over 11 lakh depositors and over 46,000
deposit agents. Over the years it has won many awards and accolades, and has
promoted several group companies to meet investors and customer needs.

HDFC currently holds 24.4% of equity in HDFC Bank. Its stock also listed on
NYSE in the form of American Depository Shares. In India HDFC has a
network of over 231 branches in 122 cities and over 750 ATMs all over the
country. HDFC also provides the various facilities like phone banking, mobile
and internet banking to its is precious customers. It has a customer base of over
3.2 million accounts. HDFC Bank has its three key business areas i.e.
Wholesale banking, Retail banking, and Treasury operations.

HDFC hikes stake in HDFC Bank through warrant conversion India’s

largest mortgage financier Housing Development Finance Corporation (HDFC)
has converted warrants issued by HDFC Bank into shares just two days before
these expired. In a notice to the stock exchanges, HDFC Bank on Monday
announced that it had allotted 2,62,00,220 shares to its parent at Rs 1,530.13 per
share. The warrants were to expire on December 2.

As of September 30, HDFC held a 19.29 per cent stake in HDFC Bank, the
country’s second-largest private sector lender. The mortgage lender’s stake in
HDFC Bank will now rise to 23.8 per cent.

25
The warrants were issued to HDFC in June last year during the merger of
HDFC Bank with Centurion Bank of Punjab, to allow the mortgage lender to
maintain its shareholding in the merged entity.

HDFC received 26.2 million warrants at Rs 1,530.13 per warrant on a

preferential basis, adding up to Rs 4,000 crore. Of this, HDFC had to pay 10 per
cent of the total amount or Rs 400.9 crore upfront, in line with guidelines on
preferential allotment.

HDFC Bank’s capital adequacy ratio (CAR), or capital as a percentage of total

risk-weighted assets, was 15.7 per cent at the end of the September quarter, with
Tier-I CAR at 10.9 per cent. The bank’s CAR will now rise above 17 per cent.

On June 3, 2008, the date on which the warrants were issued, HDFC Bank’s
stock price was Rs 1,282.55 per share on the Bombay Stock Exchange. During
the stock market bear run, the stock hit a low of Rs 774 on March 6, 2009, but
regained when the markets bounced back.

HDFC Bank’s stock was trading at Rs 1,756.25 at the end of trading on the
Bombay Stock Exchange on Monday, up 0.49 per cent over the previous close.

HDFC Bank was incorporated in August 1994, and, currently has an nationwide
network of 1,506 Branches and 3,573 ATM's in 635 Indian towns and cities.

Mumbai Country's second largest private sector lender HDFC Bank is planning
to open 300 branches this fiscal, taking its total number of branches to over
1,700.

The bank has necessary regulatory approval for opening 300 branches this year,
according to a senior official of HDFC Bank.

With the addition, the total number of branches would go up to 1712.

Currently, the bank has a nationwide network of 1412 branches and 3295
ATM's in 528 cities in the country.

HDFC Bank posted a 30.5 per cent increase in its net profit at Rs 606.1 crore
for the first quarter ended June 2009, driven by a robust rise in income from
fees and commissions.

26
The private sector lender had a net profit of Rs 464.35 crore in the first quarter
of FY'09.

The bank's earnings from fees and commissions was Rs 649.3 crore in the same
quarter, up 27 per cent over the year-ago period.

Income from other sources, too, registered a strong growth rate of 75.9 per cent
from Rs 593.4 crore in Q1 of FY'09 to Rs 1,043.7 crore.

The total income of the bank rose 22 per cent to Rs 5,136.75 crore during the
first quarter of FY'10 from Rs 4,215.15 crore in the corresponding period a
year-ago.

HDFC stands for Housing Development Financial Corporation. It was

incorporate in year 1977 as a public limited company under company’s act 1956
as to commence its business in housing finance, i.e. to provide the financial
services such as loans, etc to the general public in respect to their requirements.
It has grown to be a leader in housing finance. It was the pioneer in housing
finance as well as the first private Sector Company in the field of housing
finance.
On analyzing the balance sheets and annual report of the company we came out
with the conclusion that during the financial year ending 2000-2001 the
quantum of loans approved were Rs. 68.80 billion as compared to its loan
disbursed comes out to be Rs. 58.03 billion. In the financial year 2001-2002
both the loans approved and loan disbursed drastically changed and the figure
comes out be Rs. 90.41 billion and Rs. 76.17 billion loans approved as well as
loan disbursed respectively. The last year annual report and balance sheet
clearly indicates the growth in terms of loan approved and loan disbursed the
figure itself speaks the success story of HDFC as the graph of loan approved
touches the benchmark of Rs.117.32 billion as compared to loan disbursed
which comes out to be Rs.99.51 billion.
On scrutinizing the financial year health of the last three years of the company,
we find out that the conversion ratio is very high i.e. almost all the loans
approved are converted in to the final approval resulting in to the disbursement
of finance amount.
The brief knowledge of the Performance indicator of the group can be briefly
understood through its loan approval and its disbursements, which can be seen
through ‘Bar Graph’, which is as follows.
HDFC’s GEOGRAPHICAL SPREADS: -

27
HDFC geographical spreads extents throughout India except the state of Jammu
and Kashmir, Himachal Pradesh, and North-East states of the country. It has
wide network of regional offices and branch offices covering almost each and
every territory, part, and state region of the country. It current strength of
regional offices and branch offices covers almost 2400 towns and cities.
If we see the HDFC geographic spread in the last decade we would find out that
it has increased from 26 number to 145 numbers, with the advent of LPG
(Liberalization, Privatization, and Globalization). HDFC came out with offices
with a geographical spread of 26 in numbers. In the year 1997 the numbers
comes out to be 32, in 1998 it becomes 48, in 1999 it has 49, in the year 2000
the number comes to be 67, in 2001 it was 87 and now in the current year it has
a network of 145 offices (Including Regional and Branch Offices) excluding
branch counters in township branches.
If we analysis the growth rate and geographical spread of HDFC in the last
decade we would came out with the conclusion that the growth of HDFC only
in terms of geographical spreads is more then five times. It is a sure sign of
success. As a company, bank, institution can only survive when it has got a
large network spread in throughout the country. It has out of reach program out
90 locations in the upcoming future.
Talking about the present scenario it has deposits and loan production offered to
individuals in over 2000 towns and cities. During the last financial year 2002-
2003 it has open 24 offices in the different parts of the country. To sum up we
can conclude that HDFC’s regional offices and branch offices are evenly spread
throughout the country and 145 in numbers. The geographical spread of the
HDFC’s can be seen through the following map. It shows that how the group is
spreading its network throughout the nation. It also shows the number of
Regional and Branch offices of the group from the 1992 to the year 2008.

28
HDFC Bank
Over the years, HDFC has helped to promote institutions in the field of housing
finance, and in the financial sector in general. Notable amongst these has been
HDFC Bank. This was initially promoted in a strategic alliance with Natwest
Markets-UK. HDFC Bank commenced its operations in February 1995.
HDFC Bank currently has strategic business collaboration with The Chase
Manhattan Bank. HDFC Bank is presently the largest private sector bank
following the merger with Times Bank Limited. The merger has provided
HDFC Bank a strong presence in the retail-banking segment.
HDFC currently holds 24.4 % of equity in HDFC Bank, Stock also listed on
NYSE in the form of American Depository Shares. During the years of its
operations HDFC has increased its network presently HDFC having a network
of over 250 branches spread over 135 cities and having over 800 ATMs nation
wide. Beside this HDFC is providing various facilities to its customers like
phone banking, mobile and internet banking as a result it has a customer base of
over 3.1 million accounts.
Key business areas
 Wholesale banking.
 Retail banking.
 Treasury operations.
HDFC BANK AT GLANCE: -
HDFC Bank Limited, India
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. The bank was incorporated in August
1994 in the name of ‘HDFC Bank Limited’, with its registered office in
Mumbai, India. HDFC Bank commenced operations as a Scheduled
Commercial Bank in January 1995.
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 a 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

29
shareholder base and unique consumer franchise, HDFC was ideally positioned
to promote a bank in the Indian environment.
Business Focus
HDFC Bank's mission is to be a World-Class Indian Bank. The Bank's aim is to
build sound customer franchises across distinct businesses so as to be the
preferred provider of banking services in the segments that the bank operates in
and to achieve healthy growth in profitability, consistent with the bank's risk
appetite. The bank is committed to maintain the highest level of ethical
standards, professional integrity and regulatory compliance. HDFC
Bank's business philosophy is based on four core values: Operational
Excellence, Customer Focus, Product Leadership and People.
Capital Structure
The authorized capital of HDFC Bank is Rs.450 crore (Rs.45 billion). The paid-
up capital is Rs.282 crore (Rs.28.2 billion). The HDFC Group holds 24.4% of
the bank's equity while about 13.2% of the equity is held by the depository in
respect of the bank's issue of American Depository Shares (ADS/ADR Issue).
The Indian Private Equity Fund, Mauritius (IPEF) and Indocean Financial
Holdings Ltd., Mauritius (IFHL) (both funds advised by J P Morgan Partners,
formerly Chase Capital Partners) together hold about 5.5% of the bank's equity.
Roughly 23% of the equity is held by FIIs, NRIs/OCBs while the balance is
widely held by about 2,50,000 shareholders. The shares are listed on The Stock
Exchange, Mumbai and the National Stock Exchange. The bank's American
Depository Shares are listed on the New York Stock Exchange (NYSE) under
the symbol "HDB".
Times Bank Amalgamation
In a milestone transaction in the Indian banking industry, Times Bank Limited
(another new private sector bank promoted by Bennett, Coleman & Co./Times
Group) was merged with HDFC Bank Ltd., effective February 26, 2000. As per
the scheme of amalgamation approved by the shareholders of both banks and
the Reserve Bank of India, shareholders of Times Bank received 1 share of
HDFC Bank for every 5.75 shares of Times Bank. The amalgamation added
significant value to HDFC Bank in terms of increased branch network,
expanded geographic reach, enhanced customer base, skilled manpower and the
opportunity to cross-sell and leverage alternative delivery channels.
Distribution Network
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable
network of over 250 branches spread over 135 cities across the country. All
branches are linked on an online real-time basis. Customers in 80 locations are
also serviced through Phone Banking. The Bank's expansion plans take into
account the need to have a presence in all major industrial and commercial
30
centers where its corporate customers are located as well as the need to build a
strong retail customer base for both deposits and loan products. Being a
clearing/settlement bank to various leading stock exchanges, the Bank has
branches in the centers where the NSE/BSE have a strong and active member
base.
The Bank also has a network of over 800 networked ATMs across these cities.
Moreover, 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.
Management
Mr. Jagdish Kapoor took over as the bank's Chairman in July 2001. Prior to
this, Mr.Capoor was a Deputy Governor of the Reserve Bank of India.
The Managing Director, Mr. Aditya Puri, has been a professional banker for
over 25 years, and before joining HDFC Bank in 1994 was heading Citibank's
operations in Malaysia.
The Bank's Board of Directors is composed of eminent individuals with a
wealth of experience in public policy, administration, industry and commercial
banking. Senior executives representing HDFC are also on the Board.
Senior banking professionals with substantial experience in India and abroad
head various businesses and functions and report to the Managing Director.
Given the professional expertise of the management team and the overall focus
on recruiting and retaining the best talent in the industry, the bank believes that
its people are a significant competitive strength.
Technology
HDFC Bank operates in a highly automated environment in terms of
information technology and communication systems. The entire bank's branches
have connectivity, which enables the bank to offer speedy funds transfer
facilities to its customers. Multi-branch access is also provided to retail
customers through the branch network and Automated Teller Machines (ATMs).
The Bank has made substantial efforts and investments in acquiring the best
technology available internationally to build the infrastructure for a world-
class bank. In terms of software, the Corporate Banking business is supported
by Flexcube, while the Retail Banking business by Finware, both from i-flex
Solutions Ltd. The systems are open, saleable and web-enabled.
The Bank has priorities its engagement in technology and the internet as one of
its key goals and has already made significant progress in web-enabling its core
businesses. In each of its businesses, the Bank has succeeded in leveraging its
market position, expertise and technology to create a competitive advantage and
build market share.

31
 OBJECTIVES & BACKGROUND
Against the milieu of rapid urbanization and a changing socio-economic
scenario, the demand for housing has grown explosively. The importance of the
housing sector in the economy can be illustrated by a few key statistics.
According to the National Building Organization (NBO), the total demand for
housing is estimated at 2 million units per year and the total housing shortfall is
estimated to be 19.4 million units, of which 12.76 million units is from rural
areas and 6.64 million units from urban areas. The housing industry is the
second largest employment generator in the country. It is estimated that the
budgeted 2 million units would lead to the creation of an additional 10 million
man-years of direct employment and another 15 million man-years of indirect
employment.
Having identified housing as a priority area in the Ninth Five Year Plan (1997-
2002), the National Housing Policy has envisaged an investment target of Rs.
1,500 billion for this sector. In order to achieve this investment target, the
Government needs to make low cost funds easily available and enforce legal
and regulatory reforms.
Background
HDFC was incorporated in 1977 with the primary objective of meeting a social
need - that of promoting home ownership by providing long-term finance to
households for their housing needs. HDFC was promoted with an initial share
capital of Rs. 100 million.
Business Objectives
The primary objective of HDFC is to enhance residential housing stock in the
country through the provision of housing finance in a systematic and
professional manner, and to promote home ownership. Another objective is to
increase the flow of resources to the housing sector by integrating the housing
finance sector with the overall domestic financial markets..
Organizational Goals
HDFC's main goals are to a) develop close relationships with individual
households, b) maintain its position as the premier housing finance institution in
the country, c) transform ideas into viable and creative solutions, d) provide
consistently high returns to shareholders, and e) to grow through diversification
by leveraging off the existing client base.
Organization & Management
HDFC is a professionally managed organization with a board of directors
consisting of eminent persons who represent various fields including finance,
taxation, construction and urban policy & development. The board primarily

32
focuses on strategy formulation, policy and control, designed to deliver
increasing value to shareholders.
Awards

HDFC Bank 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, we are proud to
say that we are well on our way towards that goal.

It is extremely gratifying that our efforts towards providing customer

convenience have been appreciated both nationally and internationally.
FINANCIAL INFORMATION
The last twelve years have been very fulfilling. We can of course wax eloquent about it in so many ways, but they
say, figures don't lie, so we will let the figures do all the talking. They will give you a fair idea of how we have
grown in the past few years .

Financial Results
RBI Order of Amalgamation - CBOP
Scheme of Amalgamation - CBOP (as approved by RBI)
Annual Reports

Mission and Business Strategy

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 scalable systems to deliver

33
 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.

PURPOSE OF STUDY
34
 When a performance appraisal indicates performance improvement is
needed.
 To "benchmark" the status of improvement so far in a performance
improvement effort.
 As part of an overall professional development program.
 As part of succession planning to help an employee be eligible for a
planned change in role in the organization
 To "pilot", or test, the operation of a new performance management
system.
 To train about a specific topic.

The benefits that accrue to the organization from training &development are-

 Increased job satisfaction and morale among employees

 Increased employee motivation
 Increased efficiencies in processes, resulting in financial gain a
 Increased capacity to adopt new technologies and methods
 Increased innovation in strategies and products
 Reduced employee turnover
 Enhanced company image, employee or group conducting ethics training
 Risk management, employee or group training about sexual harassment,
diversity training ,

35
 ANALYSIS AND INTERPRETATION

1. Awareness of the performance appraisal system:

YES (1) NO (2)

95% 5%

INTERPRETATION:
The result clearly shows that overall officers are aware about the performance
appraisal system, only 5% are not aware.

36
2. Degree of transparency in the performance appraisal system:

low (1) moderate (2) high (3)

10% 55% 35%

INTERPRETATION:
According to the collected data mare than 50% officers opined that the
transparency in the performance appraisal system is moderate, but 35% officers
viewed that the transparency is high and 10% officers opined that transparency
is low.

37
3. Clarity in the appraisal system:

YES (1) NO (2)

80% 20%

INTERPRETATION:

The result clearly shows that overall officers are opined that there is clarity in
performance appraisal system, only 20% viewed that there is no clarity in the
system.

38
4. Drawbacks associated with the appraisal system:

YES (1) NO (2)

40% 60%

INTERPRETATION:
The result shows that more than 50% officers opined that there does not have
any limitations in the appraisal system. Less than 50% opined that there are
drawbacks associated with appraisal system.

39
5. Feedback:

YES (1) NO (2)

70% 30%

INTERPRETATION:

The results shows that 70% officers are getting feedback by their immediate
supervisors. 30% are not getting feedback by their bosses.

40
6. E-PMS for non officers:

YES (1) NO (2)

95% 5%

INTERPRETATION:

The data clearly shows that mostly officers opined that computerization of
performance appraisal system for non officers will improve the efficiency and
transparency in the system.

41
7. Training to appraise after appraisal
YES (1) NO (2)
100% NIL

INTERPRETATION:
According to the collected data , all the officers opined that training should be
provided to appraise after every appraisal.

42
8. Training to appraiser
YES (1) NO (2)
90% 10%

INTERPRETATION:
According to the above data 90% officers opined that training should be
provided to appraiser, but according to 10% officers there is no need of training
for appraiser.

43
9. Monetary linkage of appraisal system as a bonus

YES (1) NO (2)

60% 40%

INTERPRETATION:
The result shows that 60% officers are satisfied with the monetary linkage of
appraisal system as a bonus, BUT 40% are not satisfied.

44
10. Appraisal system on a 5-point rating scale

Unsatisfactory(1) below satisfactory above outstanding(5)

satisfactory(2) (3)
satisfactory

(4)
10% 10% 20% 30% 30%

INTERPRETATION:

According to the collected data 60% officers are above satisfactory,20% are
satisfied and 20% are below satisfactory with the appraisal system in the HDFC
BANK.

11. Periodicity of performance appraisal

45
 half-yearly (2) annually (3)
Quarterly (1)
25% 25% 50%

INTERPRETATION:

According to the above data mostly officers opined that performance appraisal
should be annually, but some of them are not satisfied. Performance appraisal
according to them should be half-yearly and quarterly.

FINDINGS:-

46
 According to our study most of the officers want that performance appraisal
should be done annually.
 Training should be given to the appraiser
 Appraise get the feedback from their appraiser.
 Officers are well aware about the performance management system.
 Officers are satisfied with the appraisal system used in HDFC BANK.
 Computerized PMS increases the efficiency of the employees.

CONCLUSION
47
 According to the research, he employees are not very much aware about to deal
the HDFC BANK. So the superiors should give the proper training to the
employees to fill the form available on the HDFC BANK system.
 There should be clarity in appraisal system.The feedback should be
provided by the appraiser to the appraise. Performance
 Appraisal should be results oriented .Performance meets to corporation
goal.

RECOMMENDATIONS AND SUGGESTIONS

48
 Performance Appraisal methods should be result oriented and HDFC
BANK should move away from the present practice of assessing
performance appraisal through personality traits.
 Career plans should be made known to employees.
 Performance appraisal should be written in the presence of employees
after discussion with them. The employees may be agreeable to the
appraisal made ,but it should be in his knowledge with sufficiently
explained to him .
 Any weakness and strength should be informed to the officers and
areas of improvement also be indicated by the immediate supervisor.
 The officer should be given whether performance is
satisfactory/good/outstanding and why?
 For individual whose performance adverse should be informed so can
be made in successive year.

LIMITATIONS OF THE STUDY:-

49
 There are many shortcomings in the study due to various reasons .The main
limitations of the study are as follows:-

 The size of sample is small due time and resources.

 Some respondents are not ready to fill the questionnaire.
 The study found a great deal of hesitation among the respondents
while giving information
 Due to shortage of time availability the possibility of having
suggestion to exactly be true is quite less.

BIBLIOGRAPHY

50
 Organizational Behaviour- Stephen P. Robbins
 Personnel Management- C.B Mamoria&S.V. Gankar
 Journals like Human Capital, Business Today & Indian Journal of
Training & Development.
 Internet sites- google.com and other corporate sites
 Studies
 Notes
 Questionnaire

Web site
www.google.com
www.hdfc.com
www.hdfcbank.com

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