HDFC

BOB

The Housing Development Finance Corporation Limited (HDFC) 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. 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. 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. HDFC Bank's mission is to be a World-Class Indian Bank. The bank is committed to maintain the highest level of ethical standards, professional integrity, corporate governance and regulatory compliance.

BUSINESS PHILOSOPHY
HDFC Bank's business philosophy is based on four core values ;

Operational Excellence

Customer Focus

Product Leadership

People

CAPITAL STRUCTURE

SHARE HOLDERS, 29%

Promotors, 27%

FIIs, 27% ADS depository, 17%

The HDFC Group holds 23.63 % of the Bank's equity and about 17.05 % of the equity is held by the ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue). 27.45% of the equity is held by Foreign Institutional Investors (FIIs) and the Bank has about 4,33,078 shareholders

DISTRIBUTION NETWORK
HEADQUARTERED NUMBER OF BRANCHES NO. OF CITIES COVERED : : : MUMBAI 1725 780

NO. OF ATMS
REVENUES PROFITS

:
: :

4393
Rs. 2,429.27 crores Rs. 665.60 crores

TOTAL EMPLOYEES

11,777

FINANCIALS
Mar '05 Capital and Liabilities: Total Share Capital Equity Share Capital 310 310 313 313 319 319 354 354 425 425 Mar '06 Mar '07 Mar '08 Mar '09

Share Application Money Preference Share Capital Reserves Revaluation Reserves Net Worth Deposits Borrowings Total Debt Other Liabilities & Provisions Total Liabilities

0.43 0 4,210 0 4,520 36,354 5,290 41,644 5,264 51,429 Mar '05

0.07 0 4,986 0 5,300 55,797 4,560 60,357 7,849 73,506 Mar '06 0 6,114 0 6,433 68,298 2,815 71,113 13,689 91,236 Mar '07 0 11,143 0 11,497 100,769 4,479 105,247 16,432 133,177 Mar '08

400.92 0 14,226 0 15,053 142,812 2,686 145,497 22,721 183,271 Mar '09

Assets
Cash & Balances with RBI 2,650.13 3,306.61 5,182.48 12,553.18 13,527.21

Balance with Banks, Money at Call Advances Investments Gross Block Accumulated Depreciation Net Block Capital Work In Progress Other Assets Total Assets Contingent Liabilities Bills for collection Book Value (Rs)

1,823.87 25,566.30 19,349.81 1,290.51 582 708 0 1331 51429 84586 5343 146

3,612.39 35,061.26 28,393.96 1,589.47 734 855 0 2277 73506 138899 5239 169

3,971.40 46,944.78 30,564.80 1,917.56 951 967 0 3605 91236 202127 7212 201

2,225.16 63,426.90 49,393.54 2,386.99 1212 1175 0 4403 133177 582836 17093 324

3,979.41 98,883.05 58,817.55 3,956.63 2250 1707 0 6357 183271 396594 17940 344

Bank of Baroda
To be a top ranking National Bank of International Standards committed to augmenting stake holders' value through concern, care and competence . Bank of Baroda is an India-based company. The Company's solutions includes personal banking, which includes deposits, gen-next services, retail loans, credit cards, debit cards, services and lockers; business banking, which includes deposits, loans and advances, services and lockers; corporate banking, which includes wholesale banking, deposits, loans and advances and services, and international business, which includes nonresident Indian (NRI) services, foreign currency credits, ECB, offshore banking, export finance, import finance, correspondent banking, trade finance and international treasury. It also offers services, such as Domestic operations and Forex operations. It also offers rural banking services, which include deposits, priority sector advances, remittance, collection services, pension and lockers.

BUSINESS PHILOSOPHY

financial integrity

Customer care & concern

honest & prudent leadership

DISTRIBUTION NETWORK

HEADQUARTERED
NUMBER OF BRANCHES NO. OF CITIES COVERED

:
: :

MUMBAI
3209 + 80 (overseas ) 1289

NO. OF ATMS
REVENUES PROFITS

:
: : Rs. 2020.10 crores Rs. 3058.33 crores

TOTAL EMPLOYEES

38960

CAPITAL STRUCTURE

Depository Receipts 0% PUBLIC SHAREHOLDING 46%

PROMOTER AND PROMOTER GROUP 54%

Balance Sheet 09
Total Share Capital
Equity Share Capital

Mar '06

Mar '07

Mar '08

Mar '09

Mar '10

Balance Sheet 09
Cash & Balances with RBI Balance with Banks, Money at Call

Mar '06 3,333.43

Mar '07 6,413 .52

Mar '08 9,369. 72

Mar '09 10,59 6.34

Mar '10 13,53 9.97

365.53
365.53 0.00 0.00 7,478.91 0.00

365.53
365.53 0.00 0.00 8,284.4 1 0.00 8,649.9 4

365.53
365.53 0.00 0.00 10,678 .40 0.00 11,043 .93

365.53
365.53 0.00 0.00 12,470 .01 0.00 12,835 .54

365.53
365.53 0.00

10,121.2 1
59,911.7 8 35,114.2 2 1,873.17 952.44 920.73 0.00 3,991.16 113,392. 53 34,678.8 7

11,86 6.85
83,62 0.87 34,94 3.63 2,244 .62 1,155 .81 1,088 .81 0.00 5,212 .50 143,1 46.18 54,99 9.86 12,97 6.53 237.4 6

12,92 9.56
106,7 01.32 43,87 0.07 3,787. 14 1,360. 14 2,427. 00 0.00 4,301. 83 179,5 99.50 75,36 4.33 15,10 5.51 303.1 8

13,49 0.77
143,9 85.90 52,44 5.88 3,954 .13 1,644 .41 2,309 .72 0.00 4,578 .12 227,4 06.73 64,74 5.82 22,58 4.64 352.3 7

21,92 7.09
175,0 35.29 61,18 2.38 4,266 .60 1,981 .84 2,284 .76 0.00 4,347 .22 278,3 16.71 77,99 7.01 27,94 9.60 414.7 1

Share Application Money

Preference Share Capital Reserves Revaluation Reserves

Advances 0.00 14,740 .86 0.00 15,106 .39 Investments Gross Block Accumulated Depreciation Net Block Capital Work In Progress Other Assets

Net Worth

7,844.44

Deposits Borrowings

93,661.9 9 4,802.20

124,915 .98 1,142.5 6

152,03 4.13 3,927. 05

192,39 6.95 5,636. 09

241,04 4.26 13,350 .09

Total Assets Total Debt Other Liabilities & Provisions 98,464.1 9 7,083.90 126,058 .54 8,437.7 0 155,96 1.18 12,594 .41 198,03 3.04 16,538 .15 254,39 4.35 8,815. 97 Bills for collection 113,392. 53 143,146 .18 179,59 9.52 227,40 6.73 278,31 6.71 Book Value (Rs)

10,407.0 4 215.35

Total Liabilities

MARKETING IN BANKING
Marketing scope in banking sector should be considered under the service marketing framework Bank marketing does not only include service selling of the bank but also is the function which gets personality and image for bank on its customers mind.

The reasons for marketing scope to have importance in banking and for banks to interest in marketing subject can be describe as:
Change in demographic structure Intense competition in financial service sector Banks wish for increasing profit

THE MARKETING MIX IN BANKING SECTOR

SERVICE Recently, banks are in a period that they earn money in servicing beyond selling money. The prestige is get as they offer their services to the masses. Like other services, banking services are also intangible. Banking services are about the money in different types and attributes like lending, depositing and transferring procedures. These intangible services are shaped in contracts. The structure of banking services affects the success of institution in long term. Besides the basic attributes like speed, security and ease in banking services, the rights like consultancy for services to be compounded are also preferred. PRICE The price which is an important component of marketing mix is named differently in the base of transaction exchange that it takes place. Banks have to estimate the prices of their services offered. By performing this, they keep their relations with extant customers and take new ones. The prices in banking have names like interest, commission and expenses. Price is the sole element of marketing variables that create earnings, while others cause expenditure. While marketing mix elements other than price affect sales volume, price affect both profit and sales volume directly. Banks should be very careful in determining their prices and price policies. Because mistakes in pricing cause customers shift toward the rivals offering likewise services. Traditionally, banks use three methods called cost-plus, transaction volume base" and challenging leader in pricing of their services.

DISTRIBUTION
The complexity of banking services are resulted from different kinds of them. The most important feature of banking is the persuasion of customers benefiting from services. Most banks services are complex in attribute and when this feature joins the intangibility characteristics, offerings take also mental intangibility in addition to physical intangibility. On the other hand, value of service and benefits taken from it mostly depend on knowledge, capability and participation of customers besides features of offerings. This is resulted from the fact that production and consumption have non separable characteristics in those services. Most authors argue that those features of banking services makes personal interaction between customer and bank obligatory and the direct distribution is the sole alternative. Due to this reason, like preceding applications in recent years, branch offices use traditional method in distribution of banking services.

PROMOTION
One of the most important element of marketing mix of services is promotion which is consist of personal selling, advertising, public relations, and selling promotional tools.

PERSONAL SELLING
Due to the characteristics of banking services, personal selling is the way that most banks prefer in expanding selling and use of them. Personal selling occurs in two ways. First occurs in a way that customer and banker perform interaction face to face at branch office. In this case, whole personnel, bank employees, chief and office manager, takes part in selling. Second occurs in a way that customer representatives go to customers place. Customer representatives are specialist in banks services to be offered and they shape the relationship between bank and customer.

ADVERTISING
Banks have too many goals which they want to achieve. Those goals are for accomplishing the objectives as follows in a way that banks develop advertising campaigns and use media.

1. Conceive customers to examine all kinds of services that banks offer

2. Increase use of services 3. Create well fit image about banks and services

4. Change customers attitudes

5. Introduce services of banks 6. Support personal selling

7. Emphasize well service

Advertising media and channels that banks prefer are newspaper, magazine, radio, direct posting and outdoor ads and TV commercials. In the selection of media, target market should be determined and the media that reach this target easily and cheaply must be preferred.

ADVERTISING Banks should care about following criteria for selection of media.

Which media the target market prefer Characteristics of service Content of message Cost Situation of rivals

Ads should be mostly educative, image making and provide the information as follows:
Activities of banks, results, programs, new services Situation of market, government decisions, future developments The opportunities offered for industry branches whose development meets national benefits.

Bank of Baroda Marketing & Branding Strategy

Expansion

Brand Ambassador

Positioning

BOB MARKETING

Customer Focus

Business Lines

Publicity

Brand Ambassador

It initially had Indias former cricket team captainRahul Dravid as its brand ambassador (2004-07). As an icon, Rahul Dravid epitomized stability, sincerity and substance which in a way complemented to the Bank of Barodas brand image.

Expansion
Bank of Baroda has established its operations in Maldives, Sri Lanka, Singapore, UAE, Yemen, Russia, Kenya, China, Malaysia, Thailand and many other countries around the globe. Rapid integration of business with the technologies through core banking solutions, i-banking, and host of other facilities has established Bank of Baroda as the foremost PSU bank in the country

Positioning
It is the fourth largest bank in India and consists of 2.5 crore customers. Banks latest marketing initiatives are aimed at positioning it as a financial service provider with value proposition and market-driven being the keywords. The bank has rolled out branches far and wide across the country to distribute an impressive assortment of financial products to its heterogeneous customer base

Business Lines-Marketing Strategy

Recent Marketing Initiatives

Communication Campaigns : Shukriya Sau Salon Kaa and Baroda Next

Use of Sybase 365 Marketing Information System

Launch of Baroda Swarojgar Vikas Sansthan

Next Gen Branch opened in Major cities

Promotions Abroad
The marketing strategy of the Bank of Baroda focuses on the promotion of the values that the bank wants to portray to its customers (both prospective and current). It wants to be seen as an efficient organization meeting all the needs of the average middle-class customer in a warm and familiar setting. The accessibility of the bank in all corners and the adoption of the latest technology are some of the areas mentioned to create the feel of a bank which despite being national in origin, is up with the times and ready for the new-age customers demands

HDFC BANK Business Strategy

Increase market share in Indias 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 more products to more customers and to control operating costs Maintain current high standards for asset quality through disciplined credit risk management Develop innovative products and services that attract the targeted customers and address inefficiencies in the Indian financial sector Continue to develop products and services that reduce banks cost of funds Focus on high earnings growth with low volatility

HDFC Bank Marketing & Branding Strategy

HDFC is looking at positioning HDFC as a one-stop financial supermarket and the objective of the promos is not just acquisition of new customers, but also looking at creating product awareness, enhancing usage and also providing value-adds to our customers to reward them for their faith and loyalty HDFC plan to send personalized mailers about our various products to all those in contact with during these mass promotions The ATMs are back in the ads now but with a shift from the largest ATM network to the fastest ATM. HDFC ATMs allow the customers to store their favorite transaction and then give quick access to that transaction with a favorite button rather than going thru multiple screens every time and thus helps in 40% faster cash withdrawal. HDFC is communicating this benefit to the customers thru the 40% Faster ATM TVC series

Media-Based Marketing
Direct mailers

Tieups

Media-Based Marketing

SMS

Event based Marketing

earlier campaigns overdosed themselves on older people, the latest campaigns certainly make the company look a lot younger. A significant majority of metro might find the recent campaigns more in line with their lives, as they are more contemporary

'HDFC Standard Life India Spells 2010'. Child Actor Darsheel Safary and Actress Tisca Chopra launched the competition

Conclusion
Evolving Indian customer While the banking industry was in a state of flux, the customers were evolving too. With liberalization and the entry of international brands into the country, customer expectations had begun to change in terms of quality and service. The media boom and the advent of several satellite channels changed attitudes further. Indians had begun to travel internationally either on work or for leisure and had become more discerning. No longer were they willing to wait in long queues or tolerate condescending behavior. This change began to reflect itself in terms of expectations from banks too. Players would be benchmarked against global standards, while services would be compared to the best of other industries as well. There seemed to be an Opportunity for a bank that served customers well at a reasonable price

Value proposition as an Acquisition Strategy Addressing the need gap, HDFC Bank decided to offer international levels of service at a reasonable price. This proposition was relevant to a vast and statistically significant middle-class market. Given the fact that this was what the market was waiting for, it met with great success and helped make acquisition an easier task, as it addressed consumer needs.

any Questions ?