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A PROJECT REPORT ON ³A Comprehensive Study On Financial Analysis´

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ACKNOWLEDGEMENT
No task is single man¶s effort. Any job in this world however trivial or tough cannot be accomplished without the assistance of others. An assignment puts the knowledge and experience of an individual to litmus test. There is always a sense of gratitude that one likes it express towards the persons who helped to change an effort in a success. The opportunity to express my indebtedness to people who have helped me to accomplish this task. I deem it a proud privilege to extend my greatest sense of gratitude to my guide MISS SONIA MITTAL (ASSISTANT MANAGER, HDFC BANK KURUKSHETRA) for the keen interest, inspiring guidance, continuous encouragement, valuable suggestions and constructive criticism throughout the pursuance of this report. My sincere thanks are due to my MR. GOURAV SHARMA (BRANCH MANAGER) for their valuable support in helping me to gain this opportunity of being associated with an organization of such esteem. I am thankful to director sir DR. VIKAS DARYAL, MS. DEEPIKA KOHLI FACULTY TIMT (HOD), for granting me the permission to undertake the study. I would like to convey thanks to MISS RASHMI KANSAL FACULTY TIMT for ready assistance, keen interest and valuable suggestions. Last but not least it would be unfair if I don¶t extend my indebtedness to my parents and all my friends for their active cooperation which was of great help during the course of my training project

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PREFACE
Using a new pattern based on proper integration of formal teaching and actual practice the M.B.A. program of DDCE Sambalpur University , (Nice Cuttack) has it course for eight weeks industrial training of second year , so as the students could begin to have the feeling of business environment right in the beginning. Practical training constitutes an integral part of management studies. Training gives an opportunity to the students to exposé themselves to the industrial environment, which is quite different from the classroom teaching. The practical knowledge is an important suffix to the theoretical knowledge. One cannot rely merely upon theoretical knowledge. Is has to be coupled with practical for it to be fruitful. The training also enables the management students to themselves see the working conditions under which they have to work in the future. After Liberalization of Indian economy sense is changed because of Multinational Companies continuously coming with their technical expertise and improved management concepts. Industrial activity in India has become a thing to watch and I really wanted to be a part of it and it is essential for me being a finance student. I consider myself lucky to get my summer training in HDFC. I underwent eight weeks of training. It really helped me to get a practical insight into the actual business environment and provide mean opportunity to make my Financial Management concepts more clear. The advantage of this sort of integration which promotes guided adjustment corporate culture, functional, social and other norms with formal teaching are: ‡To bridge the gap between theory and practice ‡ ‡ ‡ To install feeling of belongingness and acceptance To cultivate proper temperament & to generate much morale To help students identify their strong & weak points in the following & appreciating organization activities
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EXECUTIVE SUMMARY
³Undertake something is difficult, It will do you good, Unless you try to do something Beyond what you have already mastered You will never grow´. RONALDE. OSBORN The concept of this project is to check whether HDFC BANK is performing well year after year or lacking in performance. The performance can be evaluated by doing Financial Analysis of Financial Statements of Bank. The purpose of this project is to evaluate the performance of HDFC BANK. It primarily aims at learning the various factors that can help I evaluation process. I have tried to find out the reasons or ground where it is lacking. I have also tried to find out the areas of improvement. In order to do financial analysis of co. the various tools like RATIO ANALYSIS, COMPARATIVE FINANCIAL STATEMENT ANDTREND PERCENTAGES have been used. In statistical tools, I¶ve used CORRELATION, TIME SERIES ANALSIS (TREND VALUES).In Hypothesis testing, I¶ve used ANOVA TEST. The project also includes objective of study, Research Methodology, Analysis and Interpretation, findings recommendations limitation of study conclusion bibliography and annexure.

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INTRODUCTION OF BANKING MEANING AND DEFINITION:
Bank is an institution that deals in money and its substitutes and provides crucial financial services. The principal type of baking in the modern industrial world is commercial banking & central banking. Banking Means "Accepting Deposits for the purpose of lending or Investment of deposits of money from the public, repayable on demand or otherwise and withdraw by cheque, draft or otherwise." -Banking Companies (Regulation) Act,1949 The concise oxford dictionary has defined a bank as "Establishment for custody of money which it pays out on customers order." Infect this is the function which the bank performed when banking originated. "Banking in the most general sense, is meant the business of receiving, conserving & utilizing the funds of community or of any special section of it." -By H.Wills & J. Bogan. "A banker of bank is a person, a firm, or a company having a place of business where credits are opened by deposits or collection of money or currency or where money is advanced and waned. -By Findlay Sheras.

A Bank :
‡ ‡ ‡ ‡ ‡ Accept deposits of money from public, Pays interest on money deposited with it. Lends or invests money Repays the amount on demand, Allow the money deposited to be with drawn by cheque or draft.

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IMPORTANCE TO THE COMPANY:
The ultimate purpose of giving me this topic was to know about the customer¶s perceptions about the different products of the bank, and to know about operational process. how these products can attract them and how the company can generate maximum profit by convincing them through personal banker and to better understand customer requirement and to understand operational methodology.

LEARNING FROM THE STUDY:
The process of bank related transaction, bank related various terms, work environment of HDFCBank. Different products and services provided by the bank. Customers¶ perception about the different products. The brand image of the bank. What are the problems faced by customer on daily basis. How to communicate with the customers. Different techniques of dealing with the customers. How to convince and convert a customer into a real customer. and at the last how to better response to the customer problem. CHAPTER 2-ORGANIZATION PROFILE COMPANY HISTORY: 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

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

BUSINESS FOCUS
HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services for target retail and wholesale customer segments, 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, corporate governance 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 Rs550 crore (Rs5.5 billion). The paidup capital isRs424.6 crore (Rs.4.2 billion). The HDFC Group holds 19.4% of the bank's equity and about17.6% of the equity is held by the ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue). Roughly 28% of the equity is held by Foreign Institutional Investors (FIIs)and the bank has about 570,000 shareholders. The shares are listed on the Stock
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Exchange, Mumbai and the National Stock Exchange. The bank's American Depository Shares are listed onthe New York Stock Exchange (NYSE) under the symbol 'HDB'.

DISTRIBUTION NETWORK
HDFC Bank headquartered is in Mumbai. The Bank at present has an enviable network of over1229 branches spread over 444 cities across India. All branches are linked on an online real-time basis. Customers in over 120 locations are also serviced through Telephone Banking. The Bank' expansion plans take into account the need to have a presence in all major industrial and commercial 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 has a strong and active member base. The Bank also has a network of about over 2526 net worked 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.

FIVE ³S´ PART OF KAIZEN
Focus on effective work place organization believe in³Small changes lead to large improvement´ Every successful organization have their own strategy to win the race in the competitive market. They use some technique and methodology for smooth running of business. HDFC BANK also acquired the Japanese technique for smooth running of work and effective work place organization. Five µS¶ Part of Kaizen is the technique which is used in the bank for easy and systematic work place and eliminating unnecessary things from the work place.

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BENEFIT OF FIVE ³S´
‡ It can be started immediately. ‡ Every one has to participate. ‡ Five ³S´ is an entirely people driven initiatives. ‡ Brings in concept of ownership. ‡ All wastage are made visible

1. SORT:
It focus on eliminating unnecessary items from the work place. It is excellent way to free up valuable floor space. It segregate items as per ³require and wanted´

2. SYSTEMATIZE:
Systematize is focus on efficient and effective Storage method. That means it identify, organize and arrange retrieval. It largely focus on good labeling and identification practices. Objective: ³A place for everything and everything in its place´.

3. SPIC- n - SPAN:
Spic-n-Span focuses on regular clearing and self inspection. It brings in the sense of ownership.

4. STANDERDIZE:
It focuses on simplification and standardization. It involves standard rules and policies. It establish checklist to facilitate autonomous maintenance of workplace. It assigns responsibility for doing various jobs and decides on Five S frequency.

5. SUSTAIN:
It focuses on defining a new status and standard of organized work place. Sustain means regular training to maintain standards developed under S-4. It brings in self- discipline and commitment towards workplace organization.
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COLOR CODING
In the HDFC BANK each department has their different color coding apply on the different file. Due to this everyone aware about their particular color file which is coding on it and they save their valuable time. It is a part of Kaizen and also included in the system of the Five µS¶. Logic behind it that, the color coding are always differentiate the things from the similar one. particularly in the retail banking businesses in line with the business growth. Total number of employees increased from 14878 as of March31, 2006 to 21477 as of March 31, 2008.The 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 faculty. The Bank has consistently believed that broader employee ownership of its shares has a positive impact on its performance and employee motivation. The Bank¶s employee stock option scheme so far covers around 9000 employees.

MANAGEMENT
Mr. Jagdish Capoor took over as the bank's Chairman in July 2001. Prior to this, Mr. Capoor wasa 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.
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TECHNOLOGY
HDFC Bank operates in a highly automated environment in terms of information technology and communication systems. All the bank's branches have online 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. The Bank's business is supported by scalable and robust systems which ens ure that our clients always get the finest services we offer. The Bank has prioritized 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. HDFC BANK business strategy emphasizes the following: Increase 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 scale able 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. Developed 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 bank¶s cost of funds. Focus on high earnings growth with low volatility.

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PRODUCT SCOPE:
HDFC Bank offers a bunch of products and services to meet the every need of the people. The company cares for both, individuals as well as corporate and small and medium enterprises. For individuals, the company has a range accounts, investment, and pension scheme, different types of loans and cards that assist the customers. The customers can choose the suitable one from a range of products which will suit their life-stage and needs. For organizations the company has a host of customized solutions that range from funded services, Non-funded services, Value addition services, Mutual fund etc. These affordable plans apart from providing long term value to the employees help in enhancing goodwill of the company. The products of the company are categorized into various sections which are as follows: Accounts and deposits. ‡ Loans. ‡ Investments and Insurance. ‡ Forex and payment services. ‡ Cards. ‡ Customer center.

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PRODUCTS AND SERVICES AT A GLANCE
1. PERSONAL BANKING SERVICES

A.Accounts & Deposits
Savings Account
‡ Regular Savings Account ‡ Savings Plus Account ‡ Savings Max Account ‡ Senior Citizens Account ‡ No Frills Account ‡ Institutional Savings Account ‡ Payroll Salary Account ‡ Classic Salary Account ‡ Regular Salary Account ‡ Premium Salary Account ‡ Defence Salary Account ‡ Kid's Advantage Account ‡ Pension Saving Bank Accoun ‡ Family Savings Account ‡ Kisan No Frills Savings Account ‡ Kisan Club Savings Account

Current Account
‡ Plus Current Account ‡ Trade Current Account ‡ Premium Current Account ‡ Regular Current Account ‡ Apex Current Account ‡ Max Current Account ‡ Reimbursement Current Account
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Fixed Deposit
‡ Regular Fixed Deposit ‡ Super Saver Account ‡ Sweep-in Account

Recurring Deposit
Demat Account Safe Deposit Locker

B. Loans
‡ Personal Loans ‡ Home Loans ‡ Two Wheeler Loans ‡ New Car Loans ‡ Used Car Loans ‡ Overdraft against Car ‡ Express Loans ‡ Loan against Securities ‡ Loan against Property ‡ Commercial Vehicle Finance ‡ Working Capital Finance ‡ Construction Equipment Finance

C. Investments & Insurance
‡ Mutual Funds ‡ Insurance ‡ Bonds ‡ Financial Planning ‡ Knowledge Centre ‡ Equities & Derivatives ‡ Mudra Gold Bar
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D. Forex Services
‡ Trade Finance ‡ Traveler¶s Cheques ‡ Foreign Currency Cash ‡ Foreign Currency Drafts ‡ Foreign Currency Cheque Deposits ‡ Foreign Currency Remittances ‡ Forex Plus Card

E. Payment Services
‡ Net Safe ‡ Prepaid Refill ‡ Bill Pay ‡ Direct Pay ‡ Visa Money Transfer ‡ E-Monies Electronic Funds Transfer ‡ Excise & Service Tax Payment

F. Access Your Bank - One View
‡ Insta Alerts ‡ Mobile Banking ‡ AT M ‡ Phone Banking ‡ Branch Network

G. Cards
‡ Silver Credit Card ‡ Gold Credit Card ‡ Woman's Gold Credit Card ‡ Platinum plus Credit Card ‡ Titanium Credit Card
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‡ Value plus Credit Card ‡ Health plus Credit Card ‡ HDFC Bank Idea Silver Card ‡ HDFC Bank Idea Gold Card

2. WHOLESALE BANKING SERVICES
‡ Funded Services ‡ Non Funded Services ‡ Value Added Services ‡ Internet Banking ‡ Clearing Sub-Membership ‡ RTGS ± sub membership ‡ Fund Transfer ‡ ATM Tie-ups ‡ Corporate Salary a/c ‡ Tax Collection ‡ Financial Institutions ‡ Mutual Funds ‡ Stock Brokers ‡ Insurance Companies ‡ Commodities Business ‡Trusts

3. NRI BANKING SERVICES
‡ Rupee Saving a/c ‡ Rupee Current a/c ‡ Rupee Fixed Deposits ‡ Foreign Currency Deposits ‡ Accounts for Returning Indians ‡ Payment Services ‡ Net Safe
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‡ Bill Pay ‡ Insta Pay ‡ Direct Pay ‡ Visa Money ‡ Online Donation ‡ Remittances

MILESTONES IN THE HISTORY
HDFC Bank began its operations in 1995 with a simple mission to be a "World-class Indian Bank". They realized that only a single-minded focus on product quality and service excellence would help us get there. Today, they are proud to say that they are well on our way towards that goal. It is extremely gratifying that their efforts towards providing customer convenience have been appreciated both nationally and internationally. 2009 Asia Money 2009 Awards 'Best Domestic Bank in India' IBA Banking Technology Awards 2009 'Best IT Governance Award - Runner up' Global Finance Award 'Best Trade Finance Bank in India for 2009 IDRBT Banking Technology Excellence Award 2008 'Best IT Governance and Value Delivery' Asian Banker Excellence in Retail Financial Services 'Asian Banker Best Retail. Finance Asia Country Awards for Achievement 2008 'Best Bank and Best Cash Management Bank' CNN-IBN
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'Indian of the Year (Business)' Nasscom IT User Award 2008 'Best IT Adoption in the Banking Sector' Business India 'Best Bank 2008' Forbes Asia Fab 50 companies in Asia Pacific Asian Banker Excellence in Retail Financial Services Best Retail Bank 2008 Asiamoney Best local Cash Management Bank Award voted by Corporates Microsoft & Indian Express Group Security Strategist Award 2008 World Trade Center Award of honor For outstanding contribution to international trade services. Business Today-Monitor Group survey One of India's "Most Innovative Companies" Financial Express-Ernst & Young Award Best Bank Award in the Private 2007 Dun & Bradstreet ± American Express Corporate Best Bank Award 2007 'Corporate Best Bank' Award The Bombay Stock Exchange and Nasscom Foundation's Business for Social Responsibility Awards 2007
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'Best Corporate Social Responsibility Practice' Award Outlook Money & NDTV Profit Best Bank Award in the Private sector category. The Asian Banker Excellence in Retail Financial Services Awards Best Retail Bank in India Asian Banker Our Managing Director Aditya Pur

MERGER
HDFC Bank and Centurion Bank of Punjab merger at share swap ratio of 1:29 The Boards of HDFC Bank and Centurion Bank of Punjab met on 25 February, 2008 and approved, subject to due diligence, the share swap ratio for the proposed merger of Centurion Bank of Punjab with HDFC Bank. The Scheme of Amalgamation envisages a share exchange ratio of one share of HDFC Bank for twenty nine shares of Centurion Bank of Punjab. The combined entity would have a nationwide network of 1,148 branches (the largest amongst private sector Banks) a strong deposit base of around Rs. 1,200 billion and net advances of around Rs. 850billion. The balance sheet size of the combined entity would be over Rs. 1,500 billion. Commenting on the propose demerger, Mr. Deepak Parekh, Chairman, HDFC said, ³We were amongst the first to get a banking license, the first to do a merger in the private sector with Times Bank in 1999, and now if this deal happens, it would be the largest merger in the private sector banking space in India. HDFC Bank was looking for an appropriate merger opportunity that would add scale, geography and experienced staff to its franchise. This opportunity arose and we thought it is an attractive route to supplement HDFC Bank¶s organic growth. We believe
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that Centurion Bank of Punjab would be the right fit in terms of culture, strategic intent and approach to business.´ Mr. Aditya Puri, Managing Director, HDFC Bank said, ³These are exciting times for th e Indian banking industry. The proposed merger will position the combined entity to significantly exploit opportunities in a market globally recognized as one of the fastest growing. I¶m particularly bullish about the potential of business synergies and cultural fit between the two organizations. The combined entity will be an even greater force in the market.´ Mr. Rana Talwar, Chairman, Centurion Bank of Punjab stated, ³Over the last few years, Centurion Bank of Punjab has set benchmarks for growth. The bank today has a large nationwide network, an extremely valuable franchise,7,500 talented employees, and strong leadership positions in the market place. I believe that the merger with HDFC Bank will create a world class bank in quality and scale and will set the stage to compete with banks both locally as well on a global level.´ Mr. Shailendra Bhandari, Managing Director and CEO, Centurion Bank of Punjab said, ³We are extremely pleased to receive the go ahead from our board to pursue this opportunity. A merger between the banks provides significant synergies to the combined entity. The proposed merger would further improve the franchise and customer proposition offered by the individual banks.´

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QUALITY POLICY
SECURITY: The bank provides long term financial security to their policy. The bank does this by offering life insurance and pension products. TRUST: The bank appreciates the trust placed by their policy holders in the bank. Hence, it will aim to manage their investments very carefully and live up to this trust. INNOVATION: Recognizing the different needs of our customers, the bank offers a range of innovative products to meet these needs NTEGRITY CUSTOMER CENTRIC PEOPLE CARE ³ONE FOR ALL AND ALL FOR ONE´ TEAM WORK JOY AND SIMPLICITY CHAPTER 3- RESEARCH OBJECTIVES AND SCOPE OF RESEARCH PROJECT PROBLEM DEFINATION: Personal Banker were with good background human being and through rigorous process of recruitment but still not able to perform up to the expectation level of company, HR is not able to sort out the problem why the performance is not coming even after giving the full marketing and operational support. The communication technique and dealing with the customers is also a problem to the personal banker.

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ORIGIN OF WORD BANK:
The origin of the word bank is shrouded in mystery. According to one view point the Italian business house carrying on crude from of banking were called banchi bancheri" According to another viewpoint banking is derived from German word "Branck" which mean heap or mound. In England, the issue of paper money by the government was referred to as a raising a bank.

ORIGIN OF BANKING :
Its origin in the simplest form can be traced to the origin of authentic history. After recognizing the benefit of money as a medium of exchange, the importance of banking was developed as it provides the safer place to store the money. This safe place ultimately evolved in to financial institutions that accepts deposits and make loans i.e., modern commercial banks.

BANKING SYSTEM IN INDIA A HISTORICAL PERSPECTIVE :
We can identify there distinct phases in the history of Indian banking: 1.Early phase from 1786-1969. 2.Nationalization of banks and up to 1991 prior to banking sector reforms. 3.New phase of Indian banking with the advent of financial banking. Banking in India has its origin as early or Vedic period. It is believed that the transitions from many lending to banking must have occurred even before Manu, the great Hindu furriest, who has devoted a section of his work to deposit and advances and laid down rules relating to the rate of interest. During the mogul period, the indigenous banker played a very important role in lending money and financing foreign trade and commerce. During the days of the East India Company it was the turn of agency house to carry on the banking business. The General Bank of India was the first joint stock bank to be established in the year 1786. The other which followed was
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the Bank of Hindustan and Bengal Bank. The Bank of Hindustan is reported to have continued till 1906. While other two failed in the meantime. In the first half of the 19th century the East India Company established there banks, The bank of Bengalin 1809, the Bank of Bombay in 1840 and the Bank of Bombayin1843. These three banks also known as the Presidency banks were the independent units and functioned well. These three banks were amalgamated in 1920 and new bank, the Imperial Bank of India was established on 27th January, 1921. With the passing of the State Bank of India Act in 1955 the undertaking of the Imperial Bank of India was taken over by the newly constituted SBI. The Reserve Bank of India (RBI) which is the Central bank was established in April, 1935 by passing Reserve bank of India act 1935.The Central office of RBI is in Mumbai and it controls all the other banks in the country. In the wake of Swadeshi Movement, number of banks with the Indian management were established in the country namely, Punjab National Bank Ltd., Bank of India Ltd., Bank of Baroda Ltd., Canara Bank. Ltd. on 19thJuly 1969, 14 major banks of the country were nationalized and on 15thApril 1980, 6 more commercial private sector banks were taken over by the government.

FUNCTIONS OF BANKS PRIMARY FUNCTIONS
‡ ‡ ‡ ‡ ‡ ‡ Acceptance of Deposits Making loans & advances Loans Overdraft Cash Credit Discounting of bills of exchang

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SECONDARY FUNCTIONS
‡ ‡ ‡ ‡ ‡ ‡ ‡ Agency functions Collection of cheques & Bills etc. Collection of interest and dividends. Making payment on behalf of customers Purchase & sale of securities Facility of transfer of funds To act as trustee & executor

ACCORDING TO RESERVE BANK OF INDIA ACT 1935
Banks are classified into following two categories son the basis of reserve bank Act. 1934.

1. SCHEDULED BANK
These banks have paid up capital of at least Rs. 5 lacks. These are likea joint stock company. It is a co-operative organization. These banksfind their mention in the second schedule of the reserve bank.

2. NON SCHEDULED BANK
These banks are not mentioned in the second schedule of reserve bankpaid up capital of these banks is less then Rs.5 lacs. The no. such bankis gradually tolling in India.

UTILITY FUNCTIONS :
‡ ‡ ‡ ‡ ‡ ‡ Safe custody of customers valuable articles & securities. Underwriting facility Issuing of traveller's chequeletter of credit Facility of foreign exchanges Providing trade information Provide information regarding credit worthiness of their customer.

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CLASSIFICATION ON BASIS OF OWNERSHIP
On the basis of ownership banks are of the following types :

1. PUBLIC SECTOR BANK
Public sector banks are those banks which are owned by the Government. The Govt. runs these Banks. In India 14 banks were nationalized in 1969 & in 1980 another 6 banks were also nationalized. Therefore in 1980 the number of nationalized bank 20.But at present there are 9 banks are nationalized. All these banks are belonging to public sector category. Welfare is their principle objective.

2. PRIVATE SECTOR BANKS
These banks are owned and run by the private sector. Various banks in the country such as ICICI Bank, HDFC Bank etc. An individual has control over there banks in preparation to the share of the banks held by him.

.3. CO-OPERATIVE BANKS
Co-operative banks are those financial institutions. They provide short term & medium term loans to there members. Co-operative banks are in every state in India. Its branches at district level are known as the central co-operative bank. The central co-operative bank in turn has its branches both in the urban & rural areas. Every state co-operative bank is an apex bank which provides credit facilities to the central co-operative bank. It mobilized financial resources from richer section of urban population by accepting deposit and creating the credit like commercial bank and borrowing from the money mkt. It also gets funds from RBI.

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2. SAVING BANKS
The principle function of these banks is to collect small saving acrossthe country and put them into productive use. These banks haveshown marked development in Germany & Japan. These banks areestablished in HAMBURG City of Germany in 1765. In India adepartment of post offices functionsas a saving banks.

3. FOREIGN EXCHANGE BANKS
These are special types of banks which specialize in financing foreigntrade. Their main function is to make international payments throughpurchase & sale of exchange bills. As it well known, the exporters of acountry prefer to receive the payments for exports in their owncurrency. Thus these banks convert home currency into foreigncurrency and vice versa. It is on this account that these banks have tokeep with themselves stock of the currency of various countries.Along with that, they have to open branches in foreign countries tocarry on their business.

4. INDUSTIRAL BANKS
The industrial banks extends long term loans to industries. In fact,they also help industrials firms to sell their debentures and shares.Some times, they even underwrite the debentures & shares of bigindustrial concerns.

5. INDIGENIOUS BANKS
These banks found their origin in India. These banks made asignificant contribution to the development of agricultural andindustries before independence. Mahajans, rural moneylenders havebeen the forerunner of these banks in India.

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6. CENTRAL BANK
The central bank occupies a pivotal position in the monetary andbanking structure of the country. The central bank is the undisputedleader of the money market. As such it supervises controls andregulates the activities of commercial banks affiliated with it. The central bank is also the higher monetary institution in the country charged with the duty & responsibility of carrying out the monetary policy formulated by the government. India's central bank known as the reserve bank of India was set up in 1935.
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AGRICULTURAL BANK

The commercial and the industrial banks are not in a position to meet the credit requirements of agriculture. Hence, there arises the need foresting up special type of banks of finance agriculture. The credit requirement of the farmers are two types. Firstly the farmers require short term loans to buy seeds, fertilizers, ploughs and other inputs. Secondly, the farmers require long-term loans to purchase land, to effect permanent improvements on the land to buy equipment and to provide for irrigation works. There are two types of agriculture banks. 1. Agriculture co-operative banks, and 2. Land mortgage banks. The farmer provide short-term credit, while the letter extend long-term loans to the farmers

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PROFILE OF THE ORGANISATION HOUSING DEVELOPMENT FINANCE CORPORATION (HDFC BANK)

INTRODUCTION
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 RBI liberalization of Indian banking industry in 1994. The bank was in corporate in Aug. 1994 in the name of HDFC Bank Ltd. With its registered office in Mumbai, India, HDFC Bank commenced operations as scheduled commercial bank in January 1995.

PROMOTOR
HDFC is India's premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1997, the corporation has maintained a consistent and healthy growth in its operations to remain a market leader in mortgage. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has developed significant expertise inertial 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 franchise, HDFC was ideally positioned to promote a bank in the Indian environment.

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BUSINESS FOCUS
HDFC bank's mission is to be a world class Indian bank. The bank has aim to build sound customer franchises across district business so as to be the prefer provider of banking services in the segment 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: 1.Operational Excellence 2.Customer Focus 3.Product Leadership 4.People.

CAPITAL STRUCTURE
The authorized capital of HDFC bank is Rs. 45000 Lakhs. The issued, subscribed and paid-up capital is divided into 836,46 lacks equity shares @ Rs.10/- each.

TIMES BANKS AMALGAMATION
In a mile stone transaction in 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 share holders of both banks and Reserve bank of India.

DISTRIBUTION NETWORK
HDFC bank has its Headquarters in Mumbai. The bank at present has an enviable network of 535branches spread over 312 cities across the country. All branches are linked on an online real time basis. Customer in 189 locations
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are also serviced through phone banking. The banks expansion plans take into account the need to have a presence in all major industrial and commercial centers where its corporate customers are located as well as the need to build a strong retail customer base for both deposits and loans products. Being a clearing settlement bank to various leading stock exchanges, the bank has branches in centers where the NSE/BSE have a strong and active member base. The bank also have a network of 1323ATM's across there cities.

TECHNOLOGY
HDFC bank operates in a highly automated environment in terms of information technology and communication systems. All the bank's branches have connectivity which enables the bank to offer speedy funds transfer facility 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 has prioritized its engagement in technology and the internet as one of its key goals and has already made significant progress in web enabling its core business. In each office its business, the Bank has succeeded in leveraging its market position ,expertise and technology to create a competitive advantage and build market share.

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BUSINESS PROFILE
HDFC Bank caters to wide range of banking services covering both commercial and investment banking on the wholesale side and transactional branch banking on the retail side. The bank three key business areas

1.WHOLESALE BANKING SERVICES
The Bank's target is primary large blue-chip manufacturing companies in the Indian corporate sector and to a lesser extent, emerging midsized corporate. For these corporate the Bank provides a wide range of commercial and transactional Banking services including working capital finance trade services, transactional services, cash management etc. The Bank is also a leading provider of structure solution which combine cash management services with vendors and distributor finance for facilitating superior supply chain management for its corporate customers. Based on its superior product delivery service levels and strong customer orientation, the Bank has made significant in roads into the Banking consortia of a number of leading India corporate including Multinationals, Companies from the domestic business house and prime public sector companies. It is recognized as a leading provider of cash management and transactional Banking solutions to corporate customers, Mutual Funds, Stock Exchange Members and Bank.

2.RETAIL BANKING SERVICES:
The objective of retail bank is to provide its target market customer a full range of financial products and banking service, giving the customer a one-stop window for all his/her banking requirements. The products are backed by world-class services and delivered to the customers through the growing branch network as well as though alternative delivery channels like ATMs, phone banking, net banking and mobile banking. The HDFC bank preferred programs for high net worth individuals, the HDFC bank plus and the
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investment advisory services program have been designed keeping in mind heads of customers who seek distinct financial solutions information and advice on various investment avenues. The also had a wide array of retail ban products including auto loans, loans against marketable securities, personal loans and loans for two wheelers. It is also a leading provider of depository service to retail customers offering customers the facility to hold their investments in electronic form. HDFC Bank was the first bank in India to launch an international debit card in association with VISA ( Visa election) and issue the master card Maestro debit card as well. The debit card allows the use to directly debit his account at the point of purchase at a merchant establishment, in India and overseas. The bank launch its credit cardin association with VISA in November2002. The bank is also one of the leading players in the "merchant acquiring" business with 26,400point of sale (pos) terminals for debit/credit cards acceptance at merchant establishments. The bank is well positioned as a leader in various net based B2C opportunities including a wide range of interest banking services for fixed deposit, loans, bill payments etc.

3.TREASURY OPERATIONS
Within this business the bank has three main product areas foreign exchange and derivative, local currency, money market & debt securities and equities. With the liberalization of the financial market in India, corporate need more sophisticated risk management information advice and product structure. These and find pricing on various treasury product are provided through the bank treasury team.

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BOARD OF DIRECTOR
Mr. Jagdish kapoor, (Chairman) Mr. Aditya Puri, (Managing Director) Mr. Keki Mistry Dr. Venkat Rao Gadwal Dr. Vineet Jain Mrs. Renu Karnad Mr. Arvind Pande Mr. Ranjan Kapoor (Resigned w.e.f. 29th March, 2006) Mr. Bobby Parikh (w.e.f. Jan. 9, 2004) Mr. Ashim Samanta VICE PRESIDENT AND COMPANY SECRETARY Mr. Sanjany Dongre AUDITOR M/s P.C Hansotia & Co. Chartered Accountant

REGISTERED OFFICE
HDFC BANK HOUSE
Senapati Bapat Mart, Lower Parel, Mumbai-40013 Tel. No.66521000 Fax No.24960737 Website : www. hdfcbank.com

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SWOT ANALYSIS STRENGHTS :
*It has an extensive distribution network comprising of 319 branches in166 cities & one international office in Dubai this provides a competitive edge over the competitions. *The Bank has a strong retail depository base & has more than million customers. *Bank boasts of a strong brand equity. *ISO 9001 certification for its depository & custody operations & for its backend processing of retail operation & direct banking operations. *The bank has a near competitive edge in area of operations. *The bank has a market leader in cash settlement service for the major stock exchanges in its country. *HDFC Bank is one of the largest private sector bank working in India. *It has a highly automated environment in terms of information technology & communication system. *Infrastructure is best. *It has many innovative products like kids Advantage scheme, NRI services.

WEAKNESS :
*Account opening and delivery of cheque book take comparatively more time. *Lack of availability of different credit products like CC Limit, Bill discounting facilities.

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OPPORTUNITY :
* Branch expansion *Door step services *Greater liberalization in foreign ownership via FDI in Indian Pvt. Sector Banks. *CC/ OF Facilities. *Infrastructure improvements & better systems for trading & settlement in the govt. securities & foreign exchange markets.

THREATS:
*The bank has started facing competition from players like SBI, PNB Bank in the finance market itself. This reduce the profit margins in the future. *Some Pvt. Banks have7 days banking.

JUSTIFICATION OF THE STUDY
Financial Statements are prepared primarily for decision-making. They play a dominant role in setting the framework of managerial decisions. But the information in the financial statement is not an end in itself as no meaningful can be drawn from these statements alone. The information provided in the financial statement is of immense usein making decisions through analysis and interpretation of financial statements. The financial analysis is the process of identifying the financial strength and weakness of the firm by properly establishing relationship between the items of the balance sheet and P&L A/C. There are various methods or techniques used in analyzing financial statement such as comparative statement, trend analysis, common size statement, schedule of changes in working capital, fund flow and cash flow analysis, cost volume profit analysis and ³RATIO ANALYSIS´.

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Ratio analysis is one of the most powerful tool of financial analysis. It is a process of establishing and interpreting various ratios that the financial statements can be analyzed more clearly and decisions made from such analysis. Just like a DOCTOR examines his patient by recording his body Temperature, blood pressure etc before making his conclusion regarding the illness and before giving his treatment, a financial analyst analysis the financial statement with various tools of analysis before commenting upon the financial health or weaknesses of an enterprise. The purpose of financial analysis is to diagnose the information contained in financial statements so as to judge the profitability and financial soundness of the firm. Financial statement analysis is an attempt to determine the significance and meaning of financial statement data so that forecast may be made of the future earning, ability to pay interest and debt maturities and profitability of a sound dividend policy. A financial ratio is the relationship between two accounting figures expressed mathematically ratio provide clues to the financial position of the concern. These are the pointers and indicators of financial strength, soundness, position or weakness of an enterprise. One can draw conclusions about the exact financial position of a concern with the help of ratios.

OBJECTIVE OF THE STUDY
Objectives are the ends that states specifically how goal be achieved. Every study must have an objective for which all the efforts have been done. Without objective no research can be conducted and no result can be obtained. On the basis of objective all the research process is followed. Objectives are the main aspect of every study. The objective of the study gives direction to go through the research problem. It guides the researcher and keeps him on track.

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I have two objectives regarding my research project. These are shown below :1.Primary objective 2.Secondary objective 1.Primary objective :1)To study the software used in HDFC Bank 2)To analyse the financial statements of the corporation to it¶s true financial position by the use of ratios 2.Secondary objective :1)To find out the shortcomings in HDFC Bank 2)To see whether HDFC is going well or not in different areas 3)To inform the management about the financial condition ofHDFC 4)To inform the investor, enabling them to take the investment decision.

LITERARURE REVIEW
*KothariC.R., ³Quantitative Techniques1´ ,Pg10-20,³Ihave takenknowledge about research design ,sample design & sampling. In this Igot what type of sample can be choosen and more about sample design´ *KhanM.Y, JainP.K³Management Accounting2´,Pg 67 , Ratios and there formulations´. * Bruch Lev, ³Financial Statement Analysis-A new approach3´,p-11,2006, ³How ratio can be analysed and about the interpretation ofthese ratios.´ *GuptaS.P., ³Business Statistics4´, Pg 378-418³From here I found the information regarding correlation , trend and statistical tools´. * GoelD.K.³Management Accounting and FinancialManagement5´,Pg 78 ³In this I found the different types of ratios andthere formulas and about thumb rule and all basic concept´. *Pandey , I.M ³Financial Management6´Pg-143-145 ³How to prepare comparative balance sheet and how can we evaluate´. *Maheshwari ,S.N ,
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µAdvanced Accounting7´ pg b40-b48, ³It explainsratio analysis as a tool to analyze the financial statements oforganization. Different ratios depict the position of firm in market´. *Mittal R.K , ³Management Accounting& Financial Management8´ pg28-30 ³from this I have how to prepare comparative balance sheet andhow to interpret it´ *Jain T.R. , ³Statistics forMBA9´ Pg part C 135-138, ³Information about the calculation of chi square test´. * Berry G.C., ³Marketing Research10´ pg15 ³Some theoretical knowledge about the type of data´. *S.C Gupta, ³Fundamentals of Statistics11´ pg112, ³From here I found the definitions that are the base for the statistical tools´. *HoodaR.P.³Statistics for Business and Economics12´pg209-212 ³Calculation of trend analysis and its interpretation´. * Horne James.c.Van, ³Fundamental of Financial Management13´ pg125-130 ³From this I got how to analyse the financial condition´ * Chandra Prasanna , ³Fundamental of Financial Management14´,pg103 -108 ³this book help me to analyse the balance sheet , how canwe say that the firm is going well or not´. *CooperR.Donald , ³Business Research Methods17´,pg176-180 ³all about sampling design, its meaning´

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INTRODUCTION OF THE TOPIC MEANING OF FINANCIAL STATEMENTS:Financial statements refer to such statements which contains financial information about an enterprise. They report profitability and the financial position of the business at the end of accounting period. The team financial statement includes at least two statements which the accountant prepares at the end of an accounting period. The two statements are: -

1.The Balance Sheet 2.Profit And Loss Account
They provide some extremely useful information to the extent that balance Sheet mirrors the financial position on a particular date in terms of the structure of assets, liabilities and owners equity, and so on and the Profit And Loss account shows the results of operations during a certain period of time in terms of the revenues obtained and the cost incurred during the year. Thus the financial statement provides a summarized view of financial positions and operations of a firm.

MEANING OF FINANCIAL ANALYSIS
The first task of financial analysis is to select the information relevant to the decision under consideration to the total information contained in the financial statement. The second step is to arrange the information in a way to highlight significant relationship. The final step is interpretation and drawing of inference and conclusions. Financial statement is the process of selection, relation and evaluation.

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FEATURES OF FINANCIAL ANALYSIS
- To present a complex data contained in the financial statement in simple and understandable form. - To classify the items contained in the financial statement in convenient and rational groups. To make comparison between various groups to draw various conclusions. Purpose of Analysis of financial statements To know the earning capacity or profitability. To know the solvency. To know the financial strengths. To know the capability of payment of interest & dividends. To make comparative study with other firms. To know the trend of business. To know the efficiency of mgt. To provide useful information to mgt

PROCEDURE OF FINANCIAL STATEMENT ANALYSIS
The following procedure is adopted for the analysis and interpretation of financial statements:The analyst should acquaint himself with principles and postulated of accounting. He should know the plans and policies of the managements that he may be able to find out whether these plans are properly executed or not.

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The extent of analysis should be determined so that the sphere of work may be decided. If the aim is find out. Earning capacity of the enterprise then analysis of income statement will be undertaken. On the other hand, if financial position is to be studied then balance sheet analysis will be necessary. The financial data be given in statement should be recognized and rearranged. It will involve the grouping similar data under same heads. Breaking down of individual components of statement according to nature. The data is reduced to a standard form. A relationship is established among financial statements with the help of tools & techniques of analysis such as ratios, trends, common size, fund flow etc. The information is interpreted in a simple and understandable way. The significance and utility of financial data is explained for help in decision making. The conclusions drawn from interpretation are presented to the management in the form of reports.

TYPES OF FINANCIAL ANALYSIS
A)Classification on the basis of natural used

a) External Analysis
Outsiders, who don¶t have access to the detailed internal accounting records of the business firm, do this analysis. These outsiders parties are potential investor, creditors, government agencies, credit agencies & general public.

b)Internal Analysis:
The analysis conducted by person who has access to the internal accounting records of a business firm is known as internal analysis.
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B)On the basis of modus operand:
a) Horizontal Analysis: Horizontal analysis refers to the comparison of financial data of accompany for several years. The figures of this type of analysis are presented horizontally over a no. of columns. This type of analysisis also called ³Dynamic Analysis´. b) Vertical Analysis: This analysis refers to the study of relationship of the various itemsin the financial statements, of one accounting period. It is alsoknown as ³Static analysis´.

FUNCTIONS OF FINANCE DEPARTMENT
The functions of finance department include the following areas: 1)Effective management of financial resources of the company. 2) Coordinates & Monitors the functions of accounts activities in the units/marketing offers. 3)Establish and maintain systems of financial control, internal check andrender advice on financial & accounting matters includingexamination of feasibility report and detailed project reports. 4)Establish and maintain proper system of budgetary control, cost control and management reporting. 5)Maintain financial accounts and compile annual periodical accounts inaccordance with the companies Act, 1956, ensuring the audit ofaccounts as per law/Govt. directions. 6)Looks after overall funds management and arranges funds required forthe capital schemes and working capital form govt., banks andfinancial institutions etc.

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7)Timely payment of all taxes, levies & duties under the Law, Maintenance of records and filing returns statements connected with such taxes, levies and duties with the appropriate authorities , as per law. All the power involving financial implications are to e exercised in prior consultation with head of concerned finance department. In the event of any difference of opinion between the General Manger and the Head of Finance Dept., the matter shall be referred to Managing Director who after consulting Director (Finance) shall issue appropriate instruction after following the prescribed procedures.

METHODS OF FINANCIAL ANALYSIS
A number of methods can be used for the purpose of analysis of financial statements. These are also termed as techniques or tools of financial analysis. Out of these, and enterprise can choose those techniques which are suitable to its requirements. The principal techniques of financial analysisare:1.Comparative Financial Statements. 2.Common ± size Statements 3. Trend Analysis 4.Funds Flow statements 5.Cash Flow Statement

COMPARATIVE FINANCIAL STATEMENTS
When financial statements figures for two or mote years are placed side-side to facilitate comparison, these are called µcomparative Financial Statements¶. Such statements not only show the absolute figures of various years but also provide for columns to indicate to increase ort decrease in these figures from one year to another. In addition, these statements may also show the change from one year to another on percentage form. Such cooperative statementsare of great value in forming the opinion regarding the progress of theenterprise.
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PURPOSE OR UTILITY OR IMPORTANCE OF COMPARATIVE STATEMENTS
1.To make the Data simpler and more understandable 2.To indicate the Trend 3.To indicate the strong points weak points of the concern 4.To compare the firms performance with the average performance of the industry 5.To help in forecasting

COMPARATIVE PROFIT & LOSS ACCOUNT
Profit and loss account shows the net profitor net loss of a particular year whereas comparative profit and loss account for a number of years provides the following information 1.Rate of increase or decrease in gross profit. 2.Rate of increase or decrease in operating profit. 3.Rate of increase or decrease in cost of goods sales 4.Rate of increase or decrease in net profit 5.Rate of increase or decrease in sales.

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TREND ANALYSIS
Trend percentage are very useful is making comparative study of thefinancial statements for a number of years. These indicate the direction ofmovement over a long tine and help an analyst of financial statements toform an opinion as to whether favorable or unfavorable tendencies havedeveloped. This helps in future forecasts of various items. For calculating trend percentages any year may be taken as the µbase year¶.Each item of bease year is assumed to be equal to 100 and on that basis thepercentage of item of each year calculated.

RATIO ANALYSIS MEANING :
Absolute figures expressed in financial statements by themselves are meaningfulness. These figures often do not convey much meaning unless expressed in relation to otherfigures. Thus, it c an be say that the relationship between two figures, expressed in arithmetical terms is called a ratio. ³According to R.N. Anthony.´ ³A ration is simply one number expressed in terms of another. It is found by dividing one number into the other.´

TYPES OF RATIOS
Proportion or Pure Ratio or Simple ratio. Rate or so many Times. Percentage Fraction.

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OBJECTS AND ADVANTAGES OR USES OF RATIO ANALYSIS
Helpful in analysis of financial statements. Simplification of accounting data. Helpful in comparative study. Helpful in locating the weak spots of the business. Helpful in forecasting Estimate about the trend of the business Fixation of ideal standards Effective control Study of financial soundness.

LIMITATION OF RATIO ANALYSIS
False accounting data gives false ratios Comparisons not possible of different firms adopt different accounting policies. Ratio analysis becomes less effective due to price levelchange Ratios may be misleading in the absence of absolute data. Limited use of a single Ratio. Window-Dressing Lack of proper standards. Ratio alone are not adequate for proper conclusions Effect of personal ability and bias of the analyst.

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CLASSIFICATION OF RATIOS
In view of the financial management or according to the tests satisfied, various ratios have been classifieds as below I. Liquidity Ratios: These are the ratios which measure the short-term solvency or financial position of a firm. These ratios are calculated to comment upon the short-term paying capacity of a concern or the firm¶s ability to meet its current obligations. II. II. Long ±Term Solvency and Leverage Ratios: Lo n g - term solvency

ratios convey a firm¶s ability to meet the interest cost and repayment schedules of its long-term obligation e.g. Debit Equity Ratioand Interest Coverage Ration. Leverage Ratios. III. Activity Ratios:Activity ratios are calculated to measure theefficiency with which the resource of a firm have been employed. These ratios are also called turnover ratios because they indicate the speed with which assets are being turned over into sales e.g. debtors turn over ratio. I V. Profitablity Ratios: These ratios measure the results of business operations or overall performance and effective of the firm e.g. gross profit ratio, operating ratio or capital employed. Generally, two types of profitability ratios are calculated. (a)In relation to Sales, and (b)In relation in Investment

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FUNCTIONAL CLASSIFICATION IN VIEW OF FINANCIAL MANAGEMENT OR CLASSIFICATION ACCORDING TO TESTS

CASH-FLOW STATEMENT
A cash ± flow statement is a statement showing inflows (receipts) andoutflows (payments) of cash during a particular period. In other words, it is asummary of sources and applications of each during a particular span of time. Objectives of Cash Flow Statement : ‡ ‡ ‡ ‡ ‡ ‡ ‡ Useful for Short-Term Financial Planning. Useful in Preparing the Cash Budget. Comparison with the Cash Budget. Study of the Trend of Cash Receipts and Payments. It explains the Deviations of Cash from Earnings. Helpful in Ascertaining Cash Flow from various Separately. Helpful in Making Dividend Decisions.

RESEARCH METHODOLOGY
The procedure adopted for conducting the research requires a lot of attention as it has direct bearing on accuracy, reliability and adequacy of results obtained. It is due to this reason that research methodology, which we used at the time of conducting the research, needs to be elaborated upon. Research Methodology is a way to systematically study and solve the research problems. If a researcher wants to claim his study as a good study, he must clearly state the methodology adapted in conducting the research the research

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so that it way be judged by the reader whether the methodology ofwork done is sound or not. The Research Methodology here includes. 1.Meaning of Research. 2. Research Problem. 3. Research Design. 4. Sampling Design. 5.Data Collection method. 6.Analysis and interpretation of Data.

Meaning Research:
Research is defined as ³a scientific and systematic search for pertinent information on a specific topic´. Research is an art of scientific investigation. Research is a systematized effort to gain now knowledge. It isa careful investigation or inquiry especially through search for new facts inany branch of knowledge. Research is an academic activity and this term should be used in a technical sense. Research comprises defining and redefining problems, formulating hypothesis or suggested solutions. Making deductions and reaching conclusions to determine whether they if the formulating hypothesis. Research is thus, an original contribution to the existing stock of knowledge making for its advancement. The search for knowledge through objective and systematic method of finding solutions to a problem is research.

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Research Problem
The first step while conducting research is careful definition of Research Problem. ³To ERR IS THE HUMAN´ is a proverb which indicates that no one is perfect in this world. Every researcher has to face many problems which conducting any research that¶s why problem statement is defined to know which type of problems a researcher has to face while conducting any study. It is said that, ³Problem well defined is problem half solved.´ Basically, a problem statement refers to some difficulty, which research experiences in the context of either a theoretical or practical situation or wants to obtain the solution for the same. The problem statement here is: ³To make a Financial Analysis of Financial statements of HDFC BANK BHUBANESWAR

Research Design
A research designs is the arrangement of conditions for collection and analysis data in a manner that aims to combine relevance to the research purpose with economy in procedure. Research Design is the conceptual structure with in which research in conducted. It constitutes the blueprint for the collection measurement and analysis of data. Research Design includes and outline of what the researcher will do form writing the hypothesis and it operational implication to the final analysis of data. A research design is a frame work for the study and is used as guide in collection and analyzing the data. It is a strategy specifying which approach will be used for gathering and analyzing the data. It also include the time and cost budget since most studies are done under these two cost budget since most studies are done under theses tow constraints.
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The design is such studies must be rigid and not flexible and most focus attention on the following. 1.What is the study about? 2.Why is the study being made? 3.Where will the study be carried out? 4.What type of data is required? 5.Where can be required data be found? 6.What period of time will the study include? 7.What will be sample design? 8.What techniques of data collection will be used? 9.How will the data be analyzed? 10.In what style will the report be prepared? TYPES OF RESEARCH DESIGN : EXPERIMENTAL RESEARCH DESIGN EXPLORATORY RESEARCH DESIGN DESCRIPTIVE& DIAGNOSTIC RESEARCH Exploratory Research Design: This research design is preferred when researcher has a vague idea about the problem the researcher has to explore the subject. Experimental Research Design ± The research design is used to provide a strong basis for the existence of casual relationship between two or more variables. Descriptive Research Design ± It seeks to determine the answers to who, what, where, when and how questions. It is based on some previous understanding of the matter. Diagnostic Research Design It determines the frequency with which something occurs or its association with something else.

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Research Design Used in this Project
Research Design chosen for this study is Descriptive Research Design. Descriptive study is based on some previous understanding of the topic. Research has got a very specific objective and clear cut data requirements.

SAMPLING DESIGN
Sampling is necessary because it is almost impossible to examine the entire parent population (i.e. the entire universe) various factors such as time available cost, purpose of study etc. make it necessary for the researchers to choose a sample. It should neither be too small nor too big. It should be manageable. THE sample size of past 3 years is taken for present study due to time limitation.

DATA COLLECTIONS
The process of data collection begins after a research problem has been defined and research design has been chalked out. There are two types of data ±

METHODS OF PRIMARY DATA OBSERVATION METHOD INTERVIEW METHODS QUESTIONAIRE METHOD SCHEDULE METHOD

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PRIMARY DATA It is first hand data, which is collected by researcher itself. Primary data is collected by various approaches so as to get a precise, accurate, realistic and relevant data. The main tool in gathering primary data was investigation and observation. It was achieved by a direct approach and observation from the officials of the company.

SECONDARY DATA

- it is the data which is already collected by

someone else. Researcher has to analyze the data and interprets the results. It has always been important for the completion of any report. It provides reliable, suitable, adequate and specific knowledge .I took data comprise annual reports and post records. Bank has provided me annual reports from 2007-08to 2009-10 by help of which, I prepared my report. The valuable cooperation extended by staff members contributed a lot to fulfill the requirements in the collection of data in order to complete the project. Various statistical tools are applied depending on the research problem. In this study ratio analysis, comparative financial statements analysis, common size statements and Trend Analysis has been used for analyzing and interpreting the result.

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STATISTICAL TOOLS Introduction:
An educated citizen needs an understanding of basic statistical tools to function in a world that is becoming increasingly dependent on quantitative information. Statistics means numerical description to most people. In fact the term statistics is generally used to mean numerical facts and figures such as agricultural production during a year, rate of inflation and so on. However as a subject of study, statistics refers to the body of principles data. Meaning: Broadly speaking the term statistics has been generally used in two senses: and procedures developed for collection, classification, summarization and interpretation of numerical data and for the use of such

‡ Singular Sense ‡ Plural sense
The term statistics in its PLURAL SENSE, refers to the numerical data or statistical data. In its SINGULAR SENSE, the term refers to a science in which we deal with the techniques or methods of collecting, classifying, presenting, analyzing and interpreting the data. In other words, the concept in its singular sense, refers to statistical methods. Purpose Without the assistance of statistical methods an organization would find it impossible to make a sense of huge data. The purpose of statistics is to-Manipulate -Summarize -Investigate
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The data so that useful making information results could be found out. In fact every business manager needs a sound background of statistics. Statistics is a set of Decision Making Techniques, Which aids busine ssmen in drawing inferences from the available data

STATISTICAL TOOLS
Statistical tools are the basic measures, which help in defining the relation between different items, present, past and future trend of particular business etc. A wide variety of statistical tools are available and businessmen depending upon the nature of his trade can use any of them. Various statistical tools are1. Correlation 2.Time series 3. Factor analysis 4.Principal component analysis 5.Multiple correlation Here I am using correlation statistical tool to define the relationship between sales and profit of company, Trend analysis in order to project future trend values and ANOVA TEST as Hypothesis testing. So, before using the tool one should have the knowledge about that statistical tool. Therefore this tool is defined as under-

CORRELATION
Correlation analysis is basically used to determine the degree of relationship between different variables. It refers to the statistical technique that is used in measuring the closeness of relationship between two or more variables, with the help of correlation analysis we can measure-The degree of relationship in one figure -The mutual relationship between two variables.
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-economic relationship between demand and supply -The estimation of costs, sales, prices etc. is possible for a trader with the help of correlation.

TYPES OF CORRELATION
Positive and negative correlation When two variables X and Y move in same direction i.e. positive correlation and when both variables move in opposite direction, which is negative correlation. Linear and Curvy-linear Correlation When the ratio of change of two variables X and Y remains constant throughout, then they said to be linearly correlated and when the ratio of change between the two variables is not constant but changing, then correlation is said to be curvy-linear. Simple, Partial and Multiple Correlation When we study the relationship up to variables only, then it is called simple correlation. When three or ore variables are taken but relationship between any two of the variables as constant, then it is called partial correlation and when we study the relationship among three or more variables, it is called multiple correlation.

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DEGREE OF CORRELATION WHY TO USE CORRELATION
Different types of statistical tools are available but for using specifically correlation is of having a major reason i.e. only this statistical tool was giving the satisfactory results.

DECISION
At the level of significance Alpha=0.050 the decision is to reject the null hypothesis of absence of correlation. In other words, the correlation is significant. Interpretation: 1.There is a high degree of correlation between sales & profit of NLL. 2.There is a positive correlation between sales & profit of NLL. This shows that as the sales of NLL increases profit also moves in the same direction.

1. SCHEDULED BANK
These banks have paid up capital of at least Rs. 5 lacks. These are likea joint stock company. It is a co-operative organization. These banksfind their mention in the second schedule of the reserve bank.

2. NON SCHEDULED BANK
These banks are not mentioned in the second schedule of reserve bankpaid up capital of these banks is less then Rs.5 lacs. The no. such bankis gradually tolling in India.

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CLASSIFICATION ACCORDING TO FUNCTION
On the basis of functions banks are classified as under :-

1. COMMERCIAL BANKS
The commercial banks generally extend short -term loans to businessmen & traders. Since their deposits are for a short-period only. They cannot lend money for a long period. These banks reform various types or agency job for their customers. These banks are not in a position to grant long-term loans to industries because their deposits are only for a short period. The majority of joint stock banks in India are commercial banks which finance trade & commerce only.

2. SAVING BANKS
The principle function of these banks is to collect small saving across the country and put them into productive use. These banks have shown marked development in Germany & Japan. These banks are established in HAMBURG City of Germany in 1765. In India a department of post offices functions as a saving banks.

3. FOREIGN EXCHANGE BANKS
These are special types of banks which specialize in financing foreign trade. Their main function is to make international payments through purchase & sale of exchange bills. As it well known, the exporters of a country prefer to receive the payments for exports in their own currency. Thus these banks convert home currency into foreign currency and vice versa. It is on this account that these banks have to keep with themselves stock of the currency of various countries. Along with that, they have to open branches in foreign countries to carry on their business.

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4. INDUSTIRAL BANKS
The industrial banks extends long term loans to industries. In fact, they also help industrials firms to sell their debentures and shares. Some times, they even underwrite the debentures & shares of big industrial concerns.

5. INDIGENIOUS BANKS
These banks found their origin in India. These banks made a significant contribution to the development of agricultural and industries before independence. Mahajans, rural moneylenders have been the forerunner of these banks in India.

6. CENTRAL BANK
The central bank occupies a pivotal position in the mon etary and banking structure of the country. The central bank is the undisputed leader of the money market. As such it supervises controls and regulates the activities of commercial banks affiliated with it. The central bank is also the higher monetary institution in the country charged with the duty & responsibility of carrying out the monetary policy formulated by the government. India's central bank known as the reserve bank of India was set up in 1935.

7.AGRICULTURAL BANK
The commercial and the industrial banks are not in a position to meet the credit requirements of agriculture. Hence, there arises the need foresting up special type of banks of finance agriculture. The credit requirement of the farmers are two types. Firstly the farmers require short term loans to buy seeds, fertilizers, ploughs and other inputs. Secondly, the farmers require long-term loans to purchase land, to effect permanent improvements on the

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land to buy equipment and to provide for irrigation works. There are two types of agriculture banks. 1. Agriculture co-operative banks, and 2. Land mortgage banks. The farmer provide short-term credit, while the letter extend long-term loans to the farmers. PROFILE OF THE ORGANISATION HOUSING DEVELOPMENT FINANCE CORPORATION (HDFC BANK) INTRODUCTION 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 RBI liberalization of Indian banking industry in 1994. The bank was in corporate in Aug. 1994 in the name of HDFC Bank Ltd. With its registered office in Mumbai, India, HDFC Bank commenced operations as scheduled commercial bank in January 1995. PROMOTOR HDFC is India's premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1997, the corporation has maintained consistent and healthy growth in its operations to remain a market leader in mortgage. 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 franchise, HDFC was ideally positioned to promote a bank in the Indian environment. BUSINESS FOCUS
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HDFC bank's mission is to be a world class Indian bank. The bank has aim to build sound customer franchises across district business so as to be the prefer provider of banking services in the segment 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: 1. Operational Excellence 2. Customer Focus 3. Product Leadership 4. People. CAPITAL STRUCTURE The authorized capital of HDFC bank is Rs. 45000 Lakhs. The issued, subscribed and paid-up capital is divided into 836,46 lacks equity shares @ Rs.10/- each. TIMES BANKS AMALGAMATION In a mile stone transaction in 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 share holders of both banks and Reserve bank of India. DISTRIBUTION NETWORK HDFC bank has its Head quarters in Mumbai. The bank at present has an enviable network of 535branches spread over 312 cities across the country. All branches are linked on an online real time basis. Customer in 189 locations are also serviced through phone banking. The banks expansion plans take into account the need to have a presence in all major industrial and commercial centers where its

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corporate customers are located as well as the need to build a stronger tail customer base for both deposits and loans products. Being a clearing settlement bank to various leading stock exchanges, the bank has branches in centers where the NSE/BSE have a strong and active member base. The bank also have a network of 1323ATM's across there cities. TECHNOLOGY HDFC bank operates in a highly automated environment in terms of information technology and communication systems. All the bank's branches have connectivity which enables the bank to offer speedy funds transfer facility 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 has prioritized its engagement in technology and the internet as one of its key goals and has already made signi fiat progress in web enabling its core business. In each office its business, the Bank has succeeded in leveraging its market position, expertise and technology to create a competitive advantage and build market share. BUSINESS PROFILE HDFC Bank caters to wide range of banking services covering both commercial and investment banking on the wholesale side and transactional branch banking on the retail side. The bank three key business areas 1. WHOLESALE BANKING SERVICES The Bank's target is primary large blue-chip manufacturing companies in the Indian corporate sector and to a lesser extent, emerging midsized corporate. For these corporate the Bank provides a wide range of commercial and transactional Banking services including working capital finance trade services, transactional services, cash management etc. The Bank is also a leading provider of structure solution which combine cash management
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services with vendors and distributor finance for facilitating superior supply chain management for its corporate customers. Based on its superior product delivery service levels and strong customer orientation, the Bank has made significant in roads into the Banking consortia of a number of leading India corporate including Multinationals, Companies from the domestic business house and prime public sector companies. It is recognized as a leading provider of cash management and transactional Banking solutions to corporate customers, Mutual Funds, Stock Exchange Members and Bank. 2. RETAIL BANKING SERVICES: The objective of retail bank is to provide its target market customer a full range of financial products and banking service, giving the customer a one-stop window for all his/her banking requirements. The products are backed by world-class services and delivered to the customers through the growing branch network as well as though alternative delivery channels like ATMs, phone banking, net banking and mobile banking. The HDFC bank preferred programs for high net worth individuals, the HDFC bank plus and the investment advisory services program have been designed keeping in mind heads of customers who seek distinct financial solutions information and advice on various investment avenues. The also had a wide array of retail ban products including auto loans, loans against market able securities, personal loans and loans for two wheelers. It is also a leading provider of depository service to retail customers offering customers the facility to hold their investments in electronic form. HDFC Bank was the first bank in India to launch an international debit card in association with VISA ( Visa election) and issue the master card Maestro debit card as well. The debit card allows the use to directly debit his account at the point of purchase at a merchant establishment, in India and overseas. The bank launch its credit Cardin
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association with VISA in November2002. The bank is also one of the leading players in the "merchant acquiring" business with 26,400point of sale (pos) terminals for debit/credit cards acceptance at merchant establishments. The bank is well positioned as a leader in various net based B2C opportunities including a wide range of interest banking services for fixed deposit, loans, bill payments etc. 3. TREASURY OPERATIONS Within this business the bank has three main product areas foreign exchange and derivative, local currency, money market & debts crudities and equities. With the liberalization of the financial market in India, corporate need more sophisticated risk management information advice and product structure. These and find pricing on various treasury product are provided through the bank treasury team.

CAPITAL STRUCTURE
As on 30th June, 2010 the authorized share capital of the Bank is Rs. 550 crore. The paid-up capital as on said date is Rs. 459,69,07,030/(45,96,90,703 equity shares of Rs. 10/- each). 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.

The shares are listed on the Bombay Stock Exchange Limited and The National Stock Exchange of India Limited. The Bank's American Depository Shares (ADS) are listed on the New York Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's Global Depository Receipts (GDRs) are listed on Luxembourg Stock Exchange under ISIN No US40415F2002.
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HDFC BANK LTD. - FINANCIAL RESULTS (INDIAN GAAP) FOR THE PERIOD APRIL TO JUNE 2010

The Board of Directors of HDFC Bank Limited approved the Bank¶s (Indian GAAP) accounts for the quarter ended June 30, 2010 at its meeting held in Mumbai on Monday, July 19, 2010. The accounts have been subjected to a limited review by the Bank¶s statutory auditors.

FINANCIAL RESULTS:
Profit & Loss Account: Quarter ended June 30, 2010 For the quarter ended June 30, 2010, the Bank¶s total income was Rs. 5,360.0 crores as against Rs. 5,136.8 crores for the quarter ended June 30, 2009. Net revenues (net interest income plus other income) were Rs. 3,341.0 crores for the quarter ended June 30, 2010, an increase of 15.2% over Rs. 2,899.2 crores for the corresponding quarter of the previous year. Interest earned (net of loan origination costs and amortization of premia on investments held in the Held to Maturity (HTM) category) increased from Rs. 4,093.1 crores in the quarter ended June 30, 2009 to Rs. 4,420.2 crores in the quarter ended June 30, 2010. Net interest income (interest earned less interest expended) for the quarter ended June 30, 2010 grew by 29.4% to Rs. 2,401.1 crores, driven by average asset growth of 23.2% and a net interest margin (NIM) of 4.3% as against a core NIM of 4.2% for the quarter ended June 30, 2009. Other income (non-interest revenue) for the quarter ended June 30, 2010 was at Rs.939.9 crores, primarily contributed by fees and commissions of Rs. 745.7 crores (up 14.9% over Rs. 649.3 crores in the quarter ended June 30, 2009) and foreign exchange/derivative revenues of Rs. 171.8 crores (up 24.7% over
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Rs. 137.8 crores in the quarter ended June 30, 2009). Profit on revaluation/sale of investments for the quarter ended June 30, 2010 was significantly lower at Rs. 21.5 crores as against Rs. 256.0 crores for the quarter ended June 30, 2009. Operating expenses for the quarter ended June 30, 2010 were up 15.3% to Rs. 1,592.3 crores and were stable at 47.7% ofnet revenues. On account of the improvement in asset quality, provisions and contingences reduced from Rs. 658.8 crores for the quarter ended June 30, 2009 to Rs. 555.0 crores (including loan loss provisions of Rs. 365.1 crores) for the quarter ended June 30, 2010. Profit before tax for the quarter ended June 30, 2010 increased by 38.8% over the corresponding quarter ended June 30, 2009 to Rs. 1,193.7 crores. After providing Rs. 382.0 crores for taxation, the Bank earned a Net Profit of Rs. 811.7 crores, an increase of 33.9% over the corresponding quarter ended June 30, 2009Balance Sheet: As of June 30, 2010 The Bank¶s total balance sheet size increased by 25.3% to touch Rs. 233,253 crores as of June 30, 2010. Total deposits were Rs. 183,033 crores, up by 25.6% over June 30, 2009. With Savings account deposits at Rs. 53,869 crores and Current account deposits at Rs. 36,169 crores as of June 30, 2010, CASA deposits registered a growth of 37% over June 30, 2009. The CASA mix was therefore at 49.2% of total deposits as at June 30, 2010. Gross advances grew by 40.2% over June 30, 2009 to Rs. 147,620 crores. Of this, around 10% increase in advances was due to short term, one-off movements in wholesale loans. Retail loans grew by 24.4% over June 30, 2009 to Rs. 76,068 crores and constituted 51.5% of gross advances.

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Capital Adequacy:
The Bank¶s total Capital Adequacy Ratio (CAR) as at June 30, 2010 (computed as per Basel 2 guidelines) remained strong at 16.3%, as against 15.4% as of June 30, 2009 and against the regulatory minimum of 9%. Tier-I CAR was 12.4% as of June 30, 2010 as against 10.6% as of June 30, 2009.

BUSINESS UPDATE:
As of June 30, 2010, the Bank¶s distribution network was 1,725 branches and 4,393 ATMs in 780 cities as against 1,416 branches and 3,382 ATMs in 550 cities as of June 30, 2009. Portfolio quality as of June 30, 2010 remained healthy with gross non-performing assets (NPAs) at 1.2% of gross advances and net non-performing assets at 0.3% of net advances (as against 2.1% gross NPA and 0.6% net NPA ratios as of June 30, 2009). The Bank¶s provisioning policies for specific loan loss provisions remained higher than regulatory requirements. The NPA provision coverage ratio (excluding writeoffs) was at 77% as of June 30, 2010 as compared to 70% as of June 30, 2009. Total restructured assets, including applications received for loan restructuring were 0.3% of the bank¶s gross advances as of June 30, 2010. Of this amounts categorized as standard assets were 0.2% of the bank¶s gross advances.

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RESEARCH METHODOLOGY
The procedure adopted for conducting the research requires a lot of attention as it has direct bearing on accuracy, reliability and adequacy of results obtained. It is due to this reason that research methodology, which we used at the time of conducting the research, needs to be elaborated upon .Research Methodology is a way to systematically study and solve the research problems. If a researcher wants to claim his study as a good study ,he must clearly state the methodology adapted in conducting the research the research so that it way be judged by the reader whether the methodology of work done is sound or not.

The Research Methodology here includes. 7.Meaning of Research. 8. Research Problem. 9. Research Design. 10.Sampling Design. 11.Data Collection method. 12.Analysis and interpretation of Data. Meaning Research: Research is defined as ³a scientific and systematic search for pertinent information on a specific topic´. Research is an art of scientific investigation. Research is a systematized effort to gain now knowledge. It is a careful investigation or inquiry especially through search for new facts in any branch of knowledge. Research is an academic activity and this term should be used in a technical sense. Research comprises defining and redefining problems, formulating hypothesis or suggested solutions. Making deductions and reaching conclusions to determine whether they if the
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formulating hypothesis. Research is thus, an original contribution to the existing stock of knowledge making for its advancement. The search fork knowledge through objective and systematic method of finding solutions to a problem is research. Research Problem The first step while conducting research is careful definition of Research Problem. ³To ERR IS THE HUMAN´ is a proverb which indicates that no one is perfect in this world. Every researcher has to face many problems which conducting any research that¶s why problem statement is defined to know which type of problems a researcher has to face while conducting any study. It is said that, ³Problem well defined is problem half solved.´ Basically, a problem statement refers to some difficulty, which researcher experiences in the context of either a theoretical or practical situation and wants to obtain the solution for the same. The problem statement here is: ³To make a Financial Analysis of Financial statements of HDFC BANK BHUBANESWAR

Research Design
A research designs is the arrangement of conditions for collection and analysis data in a manner that aims to combine relevance to the research purpose with economy in procedure. Research Design is the conceptual structure with in which research in conducted. It constitutes the blueprint for the collection measurement and analysis of data. Research Design include sand outline of what the researcher will do form writing the hypothesis and it operational implication to the final analysis of data. A research design is a frame work for the study and is used as guide in collection and analyzing the data. It is a strategy specifying which approach will be used for gathering and analyzing
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the data. It also include the time and cost budget since most studies are done under these two cost budget since most studies are done under theses tow constraints. The design is such studies must be rigid and not flexible and most focus attention on the following. 11.What is the study about? 12.Why is the study being made? 13.Where will the study be carried out? 14.What type of data is required? 15.Where can be required data be found? 16.What period of time will the study include? 17.What will be sample design? 18.What techniques of data collection will be used? 19.How will the data be analyzed? 20.In what style will the report be prepared? TYPES OF RESEARCH DESIGN : EXPERIMENTAL RESEARCH DESIGN EXPLORATORY RESEARCH DESIGN DESCRIPTIVE& DIAGNOSTIC RESEARCH Exploratory Research Design: This research design is preferred when researcher has a vague idea about the problem the researcher has to explore the subject. Experimental Research Design ± The research design is used to provide a strong basis for the existence of casual relationship between two or more variables. Descriptive Research Design ± It seeks to determine the answers to who, what, where, when and how questions. It is based on some previous understanding of the matter.
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Diagnostic Research Design It determines the frequency with which something occurs or its association with something else. Research Design Used in this Project Research Design chosen for this study is Descriptive Research Design. Descriptive study is based on some previous understanding of the topic. Research has got a very specific objective and clear cut data requirements.

Sampling Design
Sampling is necessary because it is almost impossible to examine the entire parent population (i.e. the entire universe) various factors such as time available cost, purpose of study etc. make it necessary for the researchers to choose a sample. It should neither be too small nor too big. It should be manageable. THE sample size of past 3 years is taken for present study due to time limitation. All the findings and conclusions obtained are based on the survey done in the working are within the time limit. I tried to select the sample representative of the whole group during my summer training. I have collected data from people linked with different professional at Gorakhpur. 4.1 RESEARCH PLAN: PRELIMINARY INVESTIGATION: ‡ In which data on the situation surrounding the problems shall be gathered to arrive at. ‡ The correct definition of the problem. An understanding of its environment. EXPLORATORY STUDY: To determine the approximate area where the problem lies.

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RESEARCH DESIGN:
Research was initiated by examining the secondary data to gain insight into the problem. By analyzing the secondary data, the study aim is to explore the short comings of the present system and primary data will help to validate the analysis of secondary data besides on unrevealing the areas which calls for improvement.

DEVELOPING THE RESEARCH PLAN:
The data for this research project has been collected through self Administration. Due to time limitation and other constraints direct personal interview method is used. A structured questionnaire was framed as it is less time consuming, generates specific and to the point information, easier to tabulate and interpret. Moreover respondents prefer to give direct answers. In questionnaires open ended and closed ended, both the types of questions has been used.

COLLECTION OF DATA:
1: SECONDARY DATA: It was collected from internal sources. The secondary data was collected on the basis of organizational file, official records, news papers, magazines, management books, preserved information in the company¶s database and website of the company. 2: PRIMARY DATA: All the people from different profession were personally visited and interviewed. They were the main source of Primary data. The method of collection of primary data was direct personal interview through a structured questionnaire. SAMPLING PLAN: Since it is not possible to study whole universe, it becomes necessary to take sample from the universe to know about its characteristics. ‡Sampling Units: Different professionals. Chartered Accountants, Tax Consultants, Lawyers, Business Man, Professionals and House Wives of Bhubaneswar.
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‡ Sample Technique: Random Sampling ‡ Research Instrument: Structured Questionnaire. ‡Contact Method: Personal Interview.

SAMPLE SIZE: My sample size for this project was 50 respondents. Since
it was not possible to cover the whole universe in the available time period, it was necessary for me to take a sample size of 50 respondents.

DATA COLLECTION INSTRUMENT DEVELOPMENT: The
mode of collection of data will be based on Survey Method and Field Activity. Primary data collection will base on personal interview. I have prepared the questionnaire according to the necessity of the data to be collected.

RESEARCH LIMITATIONS:
It was not possible to understand thoroughly about the different marketing aspects of the Financial Consultant within 60 days. As stipend, money was not given it was difficult to continue the project work. All the work was limited in some limited areas of Gorakhpur so the findings should not be generalized. The area of research was Gorakhpur and it was too vast an area to cover within 60 days.

CONCLUSIONS AND SUGGESTIONS CONCLUSIONS:
HDFC Bank, the banking arm of HDFC is expected to go on stream. The bank already has good number of employees on board and is recruiting personal banker heavily to take the headcount to many more. It is on the brim of increasing its customers through its attractive schemes and offer. The project opportunities provided was market segmentation and identifying prospective customers in potential geographical location and convincing them to attract more customers so that new business opportunities of the bank can be explored. Through this project, it could be concluded that people are not much aware about the various products of the bank and many of them not
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interested to open an account, to invest money at all. services was considered as unsought good which require hard core selling, but in changing trend in income and people becoming financially literate, the demand for banking sector is increasing day by day. So, at last the conclusion is that there is tough competition ahead for the company from its major competitors in the banking sector. Last but not the least I would like to thank HDFC Bank forgiving me an opportunity to work in the field of Marketing and Operation. I hope the company finds my analysis relevant.

SUGGESTIONS:
Finally some recommendations for the company are as fallows:‡To make people aware about the benefit of becoming a customer of HDFC Bank, following activities of advertisement should be done through 1. Print Media. 2. Hoarding & Banners. 3. Stalls in Trade Fares 4. Distribution of leaflets containing details information. Other facilities must be provide to the customer: ‡ The bank should provide life time valid ATM card to all its customers. ‡ Minimum balance for savings account should be reduced from Rs 10000 to Rs 1000, so that people who are not financially strong enough can maintain their account properly. ‡ The company should provide a pass book to all its customers. ‡ Make people understand about the various benefits of its products. ‡ Company should organize the program in the society, so that people will be aware about the company and different products of the bank. ‡ Company should open more branches in different cities.
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LIMITATIONS
Every work has its own limitation. Limitations are extent to which the process should not exceed. Limitations of this project are: ‡ The project was constrained by time limit of two months. ‡ Mindset of people may very depending upon their age, gender, income etc. ‡ Getting appointment from the concern person was very difficult. ‡ People mind set about the survey was obstacles in acquiring complete Respondents were very busy in their schedule. So it was very time consuming for information & positive interaction, them to answer all the questions properly.

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