Sales Presentation - Banking

Size of India Financial services India has a rapidly growing banking and

financial service sector. Market capitalisation (NSE) of over US$1.6 billion as of Dec 2007 Mutual funds assets under management of US$1.30 billion in 2007 Over 44 venture capital and over 100 Private Equity Funds are in India (still growing) IFS accounted for 9.7% of India's GDP.

Banking Segment Overview Currently 2.5 % of the GDP Assets under Management approx 90% of

GDP If growth and value added services are included then it would be 5% of GDP Retail Banking Stands @ $6.4 bn Total Banking > $100 bn

Banking Segment Overview contd…. Banks

No. of Banks

Total Assets US $ Billion

Public Sector Banks

28

575

Indian Private Banks

25

175

Foreign Banks

29

48

Total

82

758

Technology in Banking IT spend by banking and financial services

industry in USA is 7% of the revenue as against around 1% by Indian Banks. Shared ATM network to reduce costs, increase reach. RTGS system running since 2004 and covers 15,000 branches Adoption of Technology to lead to business transformation and cost advantage in the long term.

ABOUT HDFC

Sales Organisation

• Sales Channel in the Branch Area Level – Every Branch has its own sales staff – Cross Area approach is not allowed – Contract staff and staff from sister concern Adro • Personal Bankers in every branch • Preferred Banking RM account balance of 5L to • • • •

25L Service RMs Take care of service Imperior Banking RM (25L to 50L) Wealth management A/c Bal 1cr + NRI Desk - NR Banking relationship Bankers and they cater to Private Banking customers also.

Sales Organisation Trade and Finance 1 Tr finance RM has 5 branches under him Current Account trade finance TT Bills Private Banking (Independent Structure) Report to TL who reports directly to Group Head who reports to Aditya Puri

Sales Manager Maintain and grow branch business Set Up ATMs Organize for short term deposit schemes Closely interact with DSAs to achieve

designated targets

Sales Channels Direct Through Banking Chanels

Outsourced DSAs Either thru Outbound call centres. Customer Direct Contact

Recruiting and selection practices Marketing HDFC is conservative Not good pay masters but good incentives Direct approaches are preferred e.g. thru the

website Through Reference Recruitment thru placement Companies on a case to case basis for higher executives.

Selection Practices Graduates with a passion to sell banking

products and knowledge of Capital Markets MBAs are prefered. Candidates should also know basic banking products

Training Product or Sales channel depnedant On the Job Training They have a single mentor assigned in terms

of the Team Leader Special Training prgms for management trainees

Evaluation and compensation Productivity is measured in the number of

cross sales they do In addition to the basic Banking Products like

Savings and Current Accounts  FDs etc. 

They have to sell

Mutual Funds  Life Insurance  Non-Life Insurance 

Targets Based on the Banking Deposit base Personal Commercial Unethical way of deciding targets Refer to the customers account deposits and

net worth Find out how much money is being across to and from customers personal accounts in other banks

Value-added services Personal Banking Investment Advice Helps in a home search too

Customer Relations Management Customer Complaint is first priority and sales

people are also responsible for customer satisfaction. People are taken to task and even fired on basis of Customer Satisfaction Index.