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Contents
About HDFC pg 1
Visionary Leadership • Amalgamations pg 2 pg 4 pg 5 •Growth in business During FY 08
-09 • Awards pg 6 pg 7
• HDFC bank product and customer segments • Credit ratings
• Corporate Governance Rating pg 7 Managing style
Board of directors Corporate governance Top Shareholders
pg 8&9 pg 10&11 pg 14 pg 13
Companies’ share price during FY 08-09 HR Practice pg 15
Business strategies pg 16 CSR initiatives Service Quality Initiatives pg 17 pg 1
8 pg 19 Risk Management & Portfolio Quality Internal audit and compliance
1
Community Leadership Meritus Scholarship Programme Financial Inclusion Health an
d Hygiene pg-21 pg-22 pg-23 pg-20 pg-21 Social Sustainability & Social Welfare L
ending to Self Help Groups
HDFC BANK
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 s
et up a bank in the private sector, as part of the RBI s liberalization of the I
ndian 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 B
ank commenced operations as a Scheduled Commercial Bank in January 1995. HDFC is
India s premier housing finance company and enjoys an impeccable track record i
n India as well as in international markets. Since its inception in 1977, the Co
rporation has maintained a consistent and healthy growth in its operations to re
main the market leader in mortgages. Notable event was happened in the history o
f bank as well as Indian banking sector in Feb. 2000, the Times Bank was amalgam
ated with HDFC bank. This was an important milestone, being the first merger of
two private sector banks. HDFC Bank was the first Bank to launch an Internationa
l Debit Card in association with VISA (Visa Electron). The Bank launched its Cre
dit Card business in 2001. In the same year HDFC Bank has became the first priva
te sector bank to be authorised by the Central Board of Direct Taxes (CBDT) as w
ell as the RBI to accept direct taxes. The taxes accepted at specified
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branches of the bank. Also it has announced a strategic tie-up with a Bangalore-
based business solutions software developer Tally Solutions Pvt (TSPL) for devel
oping and offering products and services facilitating on-line accounting and ban
king services to SMEs (Small and Medium Enterprises). In 2001-02 the bank was li
sted on the New York Stock Exchange in the form of ADS and bank had alliance wit
h LIC for provide online payment of insurance premium to the customers. As on 20
07 May, The Reserve Bank of India has allowed HDFC Bank to start a non banking f
inance company. The NBFC, to be set up by HDFC Bank as a wholly owned subsidiary
and will undertake retail operations such as auto, personal loans etc. On June
2nd of 2007 HDFC Bank has opened 19 branches in a day in Delhi and the National
Capital Region (NCR), outdoing its own record of 14 branches in a day 2005. As p
art and apart from the regular banking activity, HDFC Bank and The Institute for
Technology and Management (ITM), Chennai gone under Memorandum of Understanding
to promote co-operation advancement of academic and business exchanges between
the two. Its outstanding loan portfolio covers well over a million dwelling unit
s. HDFC has developed significant expertise in retail mortgage loans to differen
t market segments and also has a large corporate client base for its housing rel
ated credit facilities. With its experience in the financial markets, a strong m
arket reputation, large shareholder base and unique consumer franchise, HDFC was
ideally positioned to promote a bank in the Indian environment. HDFC issued its
IPO (initial public offer) on 20 Jul 2001 and got listed on Bombay Stock Exchan
ge Limited. Listing of HDFC in various exchanges:Sr. No 1 2 3 Exchange New York
Stock Exchange The National Stock Exchange of India Ltd Bombay Stock Exchange Li
mited Stock Code HDB HDFC BANK 500180
3
Visionary leadership
Mr. Jagdish Capoor 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. • Acquisitions and
mergers • HDFC Bank’s products & customer segments • Growth in Business • Awards & acco
lades • Credit ratings • Corporate Governance Rating Mergers In 2002, HDFC Bank witn
essed its merger with Times Bank Limited (a private sector bank promoted by Benn
ett, Coleman & Co. / Times Group). With this, HDFC and Times became the first tw
o private banks in the New Generation Private Sector Banks to have gone through
a merger. In 2008, RBI approved the amalgamation of Centurion Bank of Punjab wit
h HDFC Bank. Thus HDFC Bank acquire Centurion Bank of Punjab on 23 May 2008. Cen
turion Bank of Punjab previously operates on a strong nationwide franchise of 40
3 branches and 446 ATMs across 143 locations and is supported by over 5,000 empl
oyees. Although some of the senior officer of HDFC Bank opined that in near term
s this merger was more beneficial for the of Centurion Bank of Punjab than HDFC.
But after merger HDFC became bigger than ICICI in terms of branch network. The
Centurion Bank of Punjab has its large presence in the North and in Kerala after
its merger with Lord Krishna Bank in 2006. With this merger, the Deposits of th
e merged entity became Rs. 1,22,000 crore, while the Advances were Rs. 89,000 cr
ore and Balance Sheet size was Rs. 1,63,000 crore .
4
Growth in business During FY 08-09
Branches in Cities Branches ATMs March 2006 228 535 1326 March 2007 314 684 1605
March 2008 327 761 1977 March 2009 528 1412 3295
• Total Deposits increased from Rs. 100,768.6 crores (as of March 31, 2008) to Rs.
142,811.6 crores (as of March 31, 2009). With Savings account deposits at Rs. 3
4,914.7 crores and current account deposits at Rs. 28,444.9 crores. • During 2008-
09, gross advances grew by 48.3% to Rs. 100,239.3 crores. This was driven by a g
rowth of 38.3% in wholesale advances to Rs. 39,085.8 crores, and an increase of
55.5% in retail advances to Rs. 61,153.5 crores. • As of September 30, 2008 the ba
nk had total assets of INR 1006.82 billion. • During 2008-09, the Bank’s total balan
ce sheet increased by 37.6% over that on March 31, 2008 to Rs. 183,270.8 crores.
• For the fiscal year 2008-09, the bank has reported net profit of Rs. 2,244.9 cr
ore, up 41% from the previous fiscal. • Total annual earnings of the bank are incr
eased by 58% reaching at Rs. 19,622.8 crore in 2008-09. • The Bank’s basic earnings
per share increased from Rs. 46.2 to Rs. 52.9 per equity share
5
HDFC BANK PRODUCT AND CUSTOMER SEGMENTS
Loan Product  Auto Loan  Loan Against Security  Loan Against Property  Personal loan
 Credit card  2-wheeler loan  Commercial vehicles finance  Home loans  Retail busine
ss banking  Tractor loan  Working Capital Finance  Construction Equipment Finance  H
ealth Care Finance  Education Loan  Gold Loan Deposit Product  Saving a/c  Current a
/c  Fixed deposit  Demat a/c  Safe Deposit Lockers Investment & Insurance  Mutual Fu
nd  Bonds  Knowledge Centre  Insurance  General and Health Insurance  Equity and Deri
vatives  Mudra Gold Bar
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Payment Services  NetSafe  Merchant  Prepaid Refill  Billpay  Visa Billpay  InstaPay
irectPay  VisaMoney Transfer  e–Monies Electronic Funds Transfer  Online Payment of D
irect Tax Access To Bank  NetBanking  OneView  InstaAlert MobileBanking  ATM  Phone B
anking  Email Statements  Branch Network Forex Services  Product & Services  Trade S
ervices  Forex service Branch Locater  RBI Guidelines
Awards:
HDFC bank continued to receive awards and gain recognition from leading domestic
and international organizations during the fiscal 2008-09. Some of them are: *
Euro money Annual Survey: The Best local Bank. Also Ranked 1st in Relationship M
anagement and 2nd in private banking services overall. * Business India: Best Ba
nk 2008. * Nasscom IT User Award 2008: Best IT Adoption in the Banking Sector. *
Asian Banker Excellence in Retail Financial Services : Best Retail 2008. * Micr
osoft & Indian Express Group: Security Strategist Award 2008. * World Trade Cent
re Award of Honour: For outstanding contribution to international trade services
. Bank
7
Credit ratings
The Bank s Fixed Deposit programme has been rated CARE AAA (FD) [Triple A] by
CARE (Credit Analysis & Research Limited), which represents instruments consider
ed to be "of the best quality, carrying negligible investment risk". Fitch Ratin
gs India Pvt. Ltd. (100% subsidiary of Fitch Inc.) has assigned the "AAA ( ind )
" rating to the Bank s deposit programme, with the outlook on the rating as "sta
ble". This rating indicates "highest credit quality" where "protection factors a
re very high". . CRISIL (Credit Rating Information Services of India Limited )ha
s assigned the rating "AAA / Stable" for the Bank s Perpetual Debt programme and
Upper Tier II Bond issue
Corporate Governance Rating
The bank has been assigned a CRISIL GVC ( Corporate Governance and Value Creati
on )Level 1 rating which indicates that the bank s capability with respect to w
ealth creation for all its stakeholders while adopting sound corporate governanc
e practices is the highest.
8
Management style
BOARD OF DIRECTORS The Board has strength of 12 Directors as on March 31, 2008.
The Bank has five independent directors and six non-independent directors. The B
oard consists of eminent persons with considerable professional expertise and ex
perience in banking, finance, agriculture, small scale industries and other rela
ted fields. Management Mr. Jagdish Capoor took over as the bank s Chairman in Ju
ly 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 oper
ations in Malaysia. Type of BOD Name Shares held by each 300
Non-independent Directors on the Board Mr. Jagdish Capoor Chairman
59,383
Mr. Keki Mistry 58,924
Mrs. Renu Karnad 3,37,953
Mr. Aditya Puri MD
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71,100
Mr. Harish Engineer Engineer, Executive director 1,59,751
Mr. Paresh Sukthankar Executive Director Independent directors on the Board Mr.
Arvind Pande 600 Mr. Ashim Samanta NIL NIL
Mr. Gautam Divan NIL
Mr. C. M. Vasudev NIL
Dr. Pandit Palande
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Corporate governance
COMPOSITION OF COMMITTEES The Board has constituted various committees of Direct
ors to take informed decisions in the best interest of the Bank. These committee
s monitor the activities falling within their terms of reference. Various commit
tees of the Board were reconstituted during the year. The Board’s Committees are a
s follows: Audit & Compliance Committee: The Committee met 9 (nine) times during
the year. Its function includes the following :1. Overseeing the Bank’s financial
reporting process and ensuring correct, adequate and credible disclosure of fin
ancial information. 2. Recommending appointment and removal of external auditors
and fixing of their fees. 3. Reviewing with management the annual financial sta
tements before submission to the Board with special emphasis on accounting polic
ies and practices, compliance with accounting standards and other legal requirem
ents concerning financial statements. 4. Reviewing the adequacy of the Audit and
Compliance functions, including their policies, procedures, techniques and othe
r regulatory requirements. 5. Any other terms of reference as may be included fr
om time to time in clause 49 of the listing agreement.
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Investor Grievance (Share) Committee: The Committee approves and monitors transf
er, transmission, splitting and consolidation of shares and bonds and allotment
of shares to the employees pursuant to Employees Stock Option Scheme. The Commit
tee also monitors redressal of complaints from shareholders relating to transfer
of shares, non-receipt of Annual Report, dividends, etc.
Compensation Committee: The Compensation Committee reviews the overall compensat
ion structure and policies of the Bank with a view to attract, retain and motiva
te employees, consider grant of stock options to employees, reviewing compensati
on levels of the Bank’s employees vis-à-vis other banks and industry in general. The
Bank’s compensation policy provides a fair and consistent basis for motivating an
d rewarding employees appropriately according to their job / role size, performa
nce, contribution, skill and competence. Risk Monitoring Committee: The Committe
e develops Bank’s credit and market risk policies and procedures, verifies adheren
ce to various risk parameters and prudential limits for treasury operations and
reviews its risk monitoring system. The Committee also ensures that the Bank’s cre
dit exposure to any one group or industry does not exceed the internally set lim
its and that the risk is prudentially diversified. Credit Approval Committee: Th
e Credit Approval Committee approves credit exposures, which are beyond the powe
rs delegated to executives of the Bank. This facilitates quick response to the n
eeds of the customers and speedy disbursement of loans. Premises Committee: The
Premises Committee approves purchases and leasing of premises for the use of Ban
k’s branches, back offices, ATMs and residence of executives in accordance with th
e guidelines laid down by the Board.
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Nomination Committee: HDFC has constituted a Nomination Committee for recommendi
ng the appointment of independent /nonexecutive directors on the Board of the Ba
nk. The Nomination committee scrutinizes the nominations for independent / non– ex
ecutive directors with reference to their qualifications and experience. Fraud M
onitoring Committee This committee is dedicated to the monitoring and following
up of cases of fraud involving amounts of Rs.1 crore and above. The objective of
this Committee is the effective detection of frauds and immediate reporting the
reof to regulatory and enforcement agencies of actions taken against the perpetr
ators of frauds. Customer Service Committee: The Committee monitors the quality
of services rendered to the customers and also ensures implementation of directi
ves received from RBI in this regard. The terms of reference of the Committee ar
e to formulate comprehensive deposit policy incorporating the issues arising out
of death of a depositor for operations of his account, the product approval pro
cess, the annual survey of depositor satisfaction and the triennial audit of suc
h services.
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TOP SHAREHOLDERS HOLDING OF THE SHARE CAPITAL OF THE BANK AS AT MARCH 31, 2009
Sr. No. 1 2
Name of the Shareholder
No. of
% to share
shares held capital JP Morgan Chase Housing Development Finance Corporation Limi
ted 7,52,84,754 5,24,42,000 17.70 12.33
3 4 5
Life Insurance Corporation Of India HDFC Investments Limited ICICI Prudential Li
fe Insurance Company Ltd
3,18,97,784 3,00,00,000 1,50,40,126
7.50 7.05 3.54
6
DBS Bank Ltd
1,16,20,886
2.73
14
Share price on Bombay Stock Exchange during FY 08-09
Share price on National Stock Exchange during FY 08-09
15
HUMAN RESOURCES PRACTICES
The Bank’s staffing needs continued to increase during the year particularly in th
e retail banking businesses in line with the business growth. The total number o
f employees of HDFC increased from 37,836 as on March 31, 2008 to 52,687 as of M
arch 31, 2009. The growth in the employee base was in line with the growth in th
e banks businesses and distribution both inorganically as well as organically. T
he Bank continues to focus on training its employees on a continuing basis, both
on the job and through training programs conducted by internal and external fac
ulty. The Bank has consistently believed that broader employee ownership of its
shares has a positive impact on its performance and employee motivation. HDFC Ba
nk lists people’ as one of its stated values. The Bank believes in empowering its
employees and constantly takes various measures to achieve this.
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BUSINESS STRATEGY
HDFC BANK mission is to be "A World Class Indian Bank", benchmarking themselves
against international standards and best practices in terms of product offerings
, technology, service levels, risk management and audit & compliance. The object
ive is to build sound customer franchises across distinct businesses so as to be
a preferred provider of banking services for target retail and wholesale custom
er segments, and to achieve a healthy growth in profitability, consistent with t
he Bank s risk appetite. Bank is committed to do this while ensuring the highest
levels of ethical standards, professional integrity, corporate governance and r
egulatory compliance. Continue to develop new product and technology is the main
business strategy of the bank. Maintain good relation with the customers is the
main and prime objective of the bank.
HDFC BANK business strategy emphasizes the following: 1. Increase market share i
n India’s expanding banking and financial services industry by following a discipl
ined growth strategy focusing on quality and not on quantity and delivering high
quality customer service. 2. Leverage our technology platform and open scalable
systems to deliver more products to more customers and to control operating cos
ts. 3. Maintain current high standards for asset quality through disciplined cre
dit risk management. 4. Develop innovative products and services that attract th
e targeted customers and address inefficiencies in the Indian financial sector.
5. Continue to develop products and services that reduce bank’s cost of funds. 6.
Focus on high earnings growth with low volatility.
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CSR initiatives
Corporate social responsibility or corporate responsibility or corporate citizen
ship or responsible business or sustainable responsible business or corporate so
cial performance is a form of corporate self-regulation integrated into a busine
ss model. Following are the CSR initiatives which HDFC follows:1. Service Qualit
y Initiatives 2. Risk Management & Portfolio Quality 3. Internal audit and compl
iance
1. Service Quality Initiatives HDFC Bank continued to improve customer service i
n various spheres of its business through Service Quality Initiatives and Qualit
y Projects using Lean Sigma Tool-kit, 5S and other business excellence initiativ
es. Over 1,500 projects were executed during the year that resulted in a signifi
cant reduction of turnaround times for various processes, process efficiency imp
rovements, cost reduction, enhanced productivity and ultimately improved custome
r service. HDFC Bank has integrated the customer complaints management processes
with the existing service quality initiatives to achieve greater synergies towa
rds driving service excellence. Service quality initiatives include the audit of
services and improvement on the areas identified on the basis of customer feedb
ack on experiences at
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various touch-points. Your Bank also integrated service quality objectives with
the Business Objectives of the Bank to bring a coordinated approach towards impr
oving business by delighting customers. New elements were added and renewed impr
ovement schemes were installed using technology to ensure customer convenience,
security of transactions and reduce transaction cost. The service quality improv
ement drive was implemented for business units of the bank as well as key suppor
t departments. The Bank plans to use this platform to drive systemic changes and
process reengineering using technology and Service Quality Initiatives to furth
er enhance customer experience and business value.
2. Risk Management & Portfolio Quality The Bank in the course of its business is
exposed to various risks, of which the most important are credit risk, market r
isk (including liquidity risk and price risk) and operational risk. The identifi
cation, measurement, monitoring and control of risks remain key aspects of the B
ank’s risk management system. Sound risk management supported by a balanced risk-r
eward tradeoff is critical to achieving the Bank’s business strategy for business
and revenue growth. Specific to credit risk, the Bank has distinct policies and
processes in place for the retail and wholesale businesses. The credit cycle in
the retail assets business is managed through appropriate front-end credit, oper
ational and collection processes. There are programs for each product, which def
ine the target customer segments, underwriting standards, security structure etc
., to ensure consistency of credit origination patterns. Given its granularity,
the retail credit portfolio is managed largely on a portfolio basis, across vari
ous products and customer segments. During the year the Bank obtained an ISO 900
1:2008 certifications for its retail asset underwriting. Credit risk in the whol
esale business is managed through target market definition, comprehensive credit
assessment, appropriate approval process,
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ongoing post-disbursement monitoring and remedial management procedures. The ris
k in the portfolio is managed and mitigated by periodic reviews and diversificat
ion across individual borrowers, related borrowers, industries, sectors etc. As
of March 31, 2009, the Bank’s ratio of gross NonPerforming Assets (NPAs) to total
customer assets was 1.98%. The Bank’s ratio of gross NPAs was 1.3% on March 31, 20
08, which moved to 1.7% immediately after the merger of CBOP. Of the total gross
NPAs on March 31, 2009 around 42% were on account of the merger. Net non-perfor
ming assets (gross non-performing assets less specific loan loss provisions, int
erest in suspense and ECGC claims received) were 0.6% of customer assets as of M
arch 31, 2009. The specific loan loss provisions that the Bank has made for its
nonperforming assets continue to be more conservative than the regulatory requir
ement. In accordance with the guidelines issued by Reserve Bank of India on the
New Capital Adequacy Framework (Basel II), the Bank has migrated to the Standard
ised Approach for Credit Risk and the Basic Indicator Approach for Operational R
isk effective March 31, 2009. The Bank, simultaneously, progresses on its initia
tives towards meeting the standards set out for the more advanced capital approa
ches under Basel II. These initiatives cover enhancement of the Bank’s risk manage
ment architecture, capabilities, processes, systems and technology in areas such
as ratings systems, borrower segmentation, exposure aggregation, risk mapping,
risk estimation and capital computation.
3. Internal audit and compliance The Bank has Internal Audit & Compliance functi
ons which are responsible for independently evaluating the adequacy of all inter
nal controls and ensuring operating and business units adhere to internal proces
ses and procedures as well as to regulatory and legal requirements. The audit fu
nction also proactively recommends improvements in operational processes and ser
vice quality. To ensure independence, the Audit
20
department has a reporting line to the Chairman of the Board of Directors and th
e Audit & Compliance Committee of the Board and only indirectly to the Managing
Director. To mitigate operational risks, the Bank has put in place extensive int
ernal controls including restricted access to the Bank’s computer systems, appropr
iate segregation of front and back office operations and strong audit trails. Th
e Audit & Compliance Committee of the Board also reviews the performance of the
Audit & Compliance functions and reviews the effectiveness of controls and compl
iance with regulatory guidelines
Social Initiatives
HDFC Bank launches ‘Meritus Scholarship Programme On February 2nd, 2009 HDFC anno
unced the launch of HDFC Bank Meritus scholarship the first of its kind educati
on initiative. This unique initiative aims to cover class 4 to 9 students across
the country and will shortlist the best 5000 students for an educational schola
rships totalling to Rs. 1.5 crore per year using various academic and non-curric
ular criteria. HDFC Bank is running this programme in association with Horlicks.
The HDFC Bank Meritus Scholarship programme is an ambitious programme, which se
eks to reward all-round excellence among students and help contribute to their o
verall development. The awardees from all over the country would receive a schol
arship ranging from Rs.2,500 to Rs.10 Lakh. Announcing this first of its kind sc
holarship program, Rahul Bhagat, Group Head, HDFC Bank said " It is a small cont
ribution we are making towards the nation by facilitating young India in its que
st for excellence”
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1. Social Sustainability & Social Welfare HDFC is committed to making a positive
impact across the local communities it is present in and the society at large.
The bank has initiated a number of programs to encourage economic, social and ed
ucational development within the communities that it operates. The foundation of
social sustainability is based on creating employment opportunities. HDFC direc
tly employs 52,687 people across the nation while at the same time generating op
portunities for thousands of others through its vast network of agents, supplier
s and contractors. .In the year 2008-2009 towards its aim of quality education t
he Bank has supported a variety of educational programs ranging from educational
sponsorships for girls, adoption of state-run schools, running of academic supp
ort classes and reading classes. Apart from these initiatives the Bank also prov
ide skills training to school dropouts, youth, women and other disadvantaged gro
ups. The Bank’s social development programs have so far touched the lives of aroun
d 17,000 children and 3,000 youth. The Bank has also initiated a Social and Fin
ancial literacy Program’ for school children to educate them on the importance of
savings, to enable them differentiate between healthy and unhealthy spending, cu
ltivate financial best practices and to take financial decisions based on real n
eeds. Financial Inclusion Microfinance has, in recent times come to be recognize
d as one of the key developmental tools that can be harnessed for alleviating po
verty through social and economic empowerment of the poor. HDFC was one of the e
arly movers to enter into the microfinance sector five years ago. Considering th
e huge impact on the livelihoods and empowerment of the rural poor, the bank has
adopted different business models in order to reach segments of the rural poor.
The Bank’s microfinance program provides access to financial
22
services such as credit, savings, insurance, money transfers etc. to the poor in
a sustainable and commercially viable manner. Bulk lending to Microfinance Inst
itutions HDFC has successfully implemented the bulk bank linkage model. Under th
is program which has been growing rapidly the bank extends bulk loans to micro f
inance institutions for onward lending to women enabling them to undertake incom
e generation activities. The bank in partnership with 104 Microfinance instituti
ons and 203 NGOs has extended credit facilities exceeding Rs. 700 crores in 17 s
tates and has financially included over 2 million rural households creating inro
ads to alleviate poverty that is prevalent in certain sections of the country.
Lending to Self Help Groups As part of its commitment towards social banking and
facilitating community development, HDFC has played an active role in providing
financial services through Self Help Groups (SHGs) under the business correspon
dent model and considers it as a potential initiative for delivering financial s
ervices to the rural poor in a sustainable manner. Under the SHG bank linkage pr
ogramme, the bank has financed around 43,000 SHGs with an amount of over Rs. 200
crores and has brought in approximately 6 lakh households under financial inclu
sion through business correspondent partners. These SHGs are provided with No Fr
ill Savings Account, Closed User Group ATM cards and Point of Sale terminals for
delivering financial services using low cost technology at their doorsteps. The
bank has also facilitated a platform through online market linkage facility for
SHGs undertaking micro entrepreneurial activity.
23
Health and Hygiene Under HDFC’s health care project, the bank has provided financi
al assistance to a number of villages for the construction of basic sanitation f
acilities. The society formed through this initiative motivated and educated peo
ple on the importance of basic sanitation. Villagers were convinced to come toge
ther to form federations and manage the funds and their deployment. These villag
e level committees undertook the sanitation project with the support of the Bank
. Water security and the provision of safe drinking water is a fundamental requi
rement for sustainable development. The Bank provides financial support to villa
ge level SHG federations comprising 800 families in Sivanarpuram and Keerapalaya
m part of the Cuddalore district that lack potable water due to iron chlorosis,
turbity, microbial contamination etc. This federation along with its technology
partner plans to set up a ‘safe drinking water’ plant. This grass roots approach of
introducing applicable technology achieves the twin objectives of providing drin
king water a basic right, and also serves as an income generation program. The e
mployees of HDFC form the core of all its CSR programs and continue to contribut
e actively, through corporate volunteering. Under the bank’s payroll contribution
program amounts donated by the employees are matched by the bank. In response to
the Bihar floods the employees of the bank donated a day’s basic salary to the pr
ime ministers relief fund. HDFC continues to focus in designing financially sust
ainable models that encourage community participation, ownership and wide outrea
ch. The Bank has opened 12 specialised microfinance branches in the states of Ta
milnadu, Andhra Pradesh and Orissa to cater to the needs of the above initiative
s.
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By Ajay Thakur Bharathidasan Institute of management Bangalore