Era of globalization in competition

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In era of globalization every sector focus tough competition from its competitors' i.e. after RBI liberalization step for the private banks with few amendments in rules creates more competition between private as well as public sector bank.

"The IT investment has really paid off bringing two-pronged benefits for the bank; Firstly, it has broadened the Bank's reach to its customers providing alternative channels. Secondly, the operational costs have reduced." Says HDFC Bank IT head C N Ram

Advantage of HDFC is it acquires updated technologies for its day to day banking activates. It plays a crucial role in the banking industry .which gives maximum output with help of minimum resources.

Today banks are termed in service sector and HDFC is one of the leader in this sector so HDFC and its Updated IT technology makes it reach the sky.

Customer today can carry out banking transitions, pay utility and phone bills, issue demand drafts, with the help of new technology such as internet banking, mobile banking, telephone banking, and ATM instead of queuing in branches.

HDFC today most of the transition are possible with the help of IT support. In the age of revolution. IT has become backbone of banking sector. All customer channels such as branches, mobile, telephone and ATM are based on real time mode and are interconnected.

Technology always gives the best results which can be seen below.


This gives the linear rise in the different ways of baking.

Business strategy

HDFC business strategy is benchmarking themselves to international standards and best sound practices like technology, product offerings, risk management, services, audit and compliance.

It emphasizes on:

  1. Higher market share in India's financial and banking services followed with linear growth emphasizing on quality and not just the quantity. And delivering high level of customer service .
  2. With the help of latest technology and scalable system of services to deliver more products to customers and even maintaining the low cost.
  3. Maintain high standards to assets quality and stiff analysis on risk management.
  4. Develop new and innovate services and product to target new and existing customers.
  5. Develop different services and products which would help to reduce the cost of funds.
  6. Focus on low investments and high returns.

  1. Large Capital structure.

  3. In financial sector most safe business is housing loan. And HDFC is leader in that area.

  5. HDFC brand name attributes to its strength
  6. Right product with proper customer support.

  8. Its SB-max scheme which enable customer to access any ATM without any charges.
  9. HDFC open several micro-finance branches in order to reach the unbanked areas. This would help poor people.
  10. Bank also focus on self-help group
  11. Bank covers 18 small districts
  12. Banks has business of 1000 crore from single state Orissa.

  14. Apart from business it would also create corporate and social responsibility.

  16. large ATM network.
  18. Amalgamations merger with centurion bank of Punjab .


  1. Market expansion
  2. Expand in 30 small districts and help 2 lakh poor families. This would expand the business. And would let increase in terms of revenue. It increases manpower.

  3. Planning for new ideas like mobile ATM in rural area which would operate on Bio-metric.

  5. Expand branch networks overseas.
  7. Expand loans for hospital infrastructure.
  8. To help small and medium size industries.
  10. Expansion for more ATMS.
  12. Increase no of branches.
  1. Foreign bank's entering the market. and even the
  2. Existing competitors such as state, canara, icici bank.
  3. Lack of infrastructure in rural areas.
  5. Greater loans more risk involved.