Disclaimer: This is an example of a student written essay.
Click here for sample essays written by our professional writers.

Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com.

Introduction of HDFC bank

Paper Type: Free Essay Subject: Business
Wordcount: 3008 words Published: 6th Jul 2017

Reference this

HDFC Bank 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 from Housing Development Finance Corporation Limited (HDFC), in 1994 during the period of liberalisation of the banking sector in India. HDFC India was incorporated in August 1994 in the name of ‘HDFC Bank Limited’. HDFC India commenced operations as a Scheduled Commercial Bank in January1995.

HDFC India deals in varieties of products like home loan, standard life insurance, mutual fund, securities, credit cards, etc. HDFC has branch offices in all major cities in India like Calcutta, Chennai, Delhi, Bangalore, Hyderabad, Ahmedabad apart from HDFC Mumbai.

Business Objectives

The primary objective of HDFC is to enhance residential housing stock in the Country through the provision of housing finance in a systematic and professional Manner, and to promote home ownership. Another objective is to increase the flow of resources to the housing sector by integrating the housing finance sector with the overall domestic financial markets

Organizational Goals

Develop close relationships with individual households.

b) Maintain its position as the premier housing finance institution in the country,

c) Transform ideas into viable and creative solutions.

d) Provide consistently high returns to shareholders.

e) To grow HDFC’s main goals are

a) Through diversification by leveraging off the Existing client.

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.


The Reserve Bank of India has sanctioned the Scheme of Amalgamation of Centurion Bank of Punjab Ltd. with HDFC Bank Ltd. The Scheme has been sanctioned in exercise of the powers contained in Sub-section (4) of Section 44A of the Banking Regulation Act, 1949. 

All the branches of Centurion Bank of Punjab will function as branches of HDFC Bank with effect from May 23, 2008. With RBI’s approval, all requisite statutory and regulatory approvals for the merger have been obtained. 

The combined entity would have a nationwide network of 1,167 branches; a strong deposit base of around Rs. 1, 22,000 crores and net advances of around Rs. 89,000 crores. The balance sheet size of the combined entity would be over Rs. 1, 63,000 crores. 

HDFC Bank Board on 25th February 2008 has approved the acquisition of Centurion Bank of Punjab (CBOP) for Rs 9,510 crore in one of the largest merger in the financial sector in India. CBOP shareholders will get one share of HDFC Bank for every 29 shares held by them. (tivari, n.d.)


After merger HDFC bank with CBOP (Centurion Bank Of Punjab) the main issue was arise that was the labour turnover, It was the big problem which the bank is facing . The main issue of labour turnover is overload of work on employees due to merger because HDFC bank is the largest bank in private sector and the work level was standardised and it was already uploaded but was satisfactory. But after merger it gone to unsatisfactory level due to this problem most of the employees feel very stressful and under pressure that’s why labour turnover problem arise and by it is also a matter of human resource department and mostly this problem is arise in wholesale banking operation (WBO ) because the most of the operation is based on WBO and all the financial transaction are related to the WBO. The employee of CBOP was took by HDFC bank but there was also a software problem because every bank software is different from each other. After merger employees was unknown to the different software of the bank that was also a big problem for the bank. It was also a big issue and a barrier in this problem. (Khatri, 2011)

Get Help With Your Essay

If you need assistance with writing your essay, our professional essay writing service is here to help!

Essay Writing Service


This issue is related to the human resource problem. Employees are the main resource in any organisation. The reason for choose this issue is to show the organisation human is not like a machine. Organisations never feel they are worker they treat like a machine. So the reason is to show the organisation how u can maintain the balance between the work and between the employees satisfaction from this how can you reduce the employee’s turnover.



Gareth Morgan has described organizational culture as: “The set of the set of beliefs, values, and norms, together with symbols like dramatized events and personalities that represents the unique character of an organization, and provides the context for action in it and by it.” Beliefs and values are words that will pop up frequently in other definitions, as well. Norms might be described as traditions, structure of authority, or routines.


The definition of motivation is to give reason, incentive, enthusiasm, or interest that causes a specific action or certain behaviour. Motivation is present in every life function. Simple acts such as eating are motivated by hunger. Education is motivated by desire for knowledge. Motivators can be anything from reward to coercion.

Customer Relation

A customer relation, or customer service, is the front line between an organization and its customers. How customers are initially greeted and treated can influence their decisions to do business with your company. Effective customer relations strategies include listening skills, oral and written communication, analytical and problem solving skills and teamwork based on the organization’s commitment to meet customer needs while making customers feel welcome and valued. (lawson, 2010)

Public Relation

Public relations (PR) are a field concerned with maintaining a public image for business, non-profit organization or high-profile people, such as celebrities and politicians.


In this issue which related to the human resource management, I related this issue with the method of motivation. Because this is the problem of employee’s dissatisfaction so motivation is necessary in this situation every employee feels very stressful so the motivation is very necessary in this situation. Whether they will leave the organization and the financial crises will come in the bank.

The chosen method will be used for reduce the labour turnover motivation will help the employees to work as their maximum efficiency with the help of effective communication. When the choosen method will be related to the issues then it will work and will be implemented at proper level. Motivation is also solution of human resource problem so the problem is also related to the human resource management that’s why I choose the motivation method of communication and it will implemented. (Ashbaugh, 2009)


As per the proposal of communication to the managing director of the co, the various steps which are described in the proposal it described from learning experience through the merger. It is based on the banking issue. The issue was related to the overload of work after merging the CBOP bank into the HDFC bank. It was the issue of human resource management. Every work in any organization is depend upon the employees how they efficiently work this is the successful reason for any organization what way their employees is doing. But in this issue employees feel very pressurize and very stressful by this they gone to leaving the organization

In this situation the theory of motivation by FREDERICK HERZBERG which describe how you can motivate to the employee which they can stay with the organization for the long run through satisfaction.

Herzberg believed that businesses should motivate employees by adopting a democratic approach to management and by improving the nature and content of the actual job through certain methods. Some of the methods managers could use to achieve this are:

Job enlargement – workers being given a greater variety of tasks to perform (not necessarily more challenging) which should make the work more interesting.

Job enrichment – involves workers being given a wider range of more complex, interesting and challenging tasks surrounding a complete unit of work. This should give a greater sense of achievement.

Empowerment means delegating more power to employees to make their own decisions over areas of their working life.


After considering the all prospects this theory is hopeful and useful by job enlargement, job enrichment and empowerment which will motivate to employee to do their best. It will successful because after merger the main problem was the unsatisfactory level of work which will reduce by taking these steps. Bank merger is a new target for that bank which will exist so there will come so many problem but a well standardize and well manage financial sector can accept and adopt the changes whether it is based on new technology, new dealing, or expansion its operation at the extend level.


Ashbaugh, M., 2009. HDFC Description. [Online] Available at: http://www.marketwatch.com/investing/stock/hdb/profile.

Dion Global Solutions Limited, 2010. HDFC histroy. [Online] Available at: http://www.moneycontrol.com/company-facts/hdfcbank/history/HDF01.

Khatri, R., 2011. HDFC. [Online] Available at: WWW.HDFC.COM.

lawson, k., 2010. costomer relation. business review. panjab.

Pan, W., 2008. [Online] Available at: http://EzineArticles.com/1567108By Wendy Pan [Accessed 15 april 2008].

puri, a., 2008. business focse. [Online] Available at: http://www.hdfcbank.com/aboutus/general/default.htm.

Rajpoot, A., 2010. Investment Objective. [Online] Available at: http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=909ef6c9-2c56-4ccb-8095-d618424147d4 [Accessed 20 july 2010].

Rostogi, G.N., 2008. business line, (bulding of strenth), Available at: http://www.hinduonnet.com/businessline/2001/05/09/stories/020980k3.htm.

Talvar, 2008. HDFC Bank, Centurion Bank of Punjab merger swap fix1.9. business bank report. panjab: panjab keshari.

tivari, s., n.d. marging of CBoP. (whay it marge).



Respected Sir,

I have gone through these problems; these problems may be reduced by taking some steps in favour of bank. Banking sector is a very crucial sector as to the customer because in this sector you cannot compromise with your situation which comes by any reason because you have no option here to stand at the corner whether you lose your seat so for survive in the market you have to make perfect that’s show how you will run in the long run. Problems have to be solute so by taking these steps I think bank can be manage of their operation and day to day working and they can maintain long term relation with their customer.

1 centurion bank of Punjab staff which the HDFC is taking they need to be trained by giving knowledge of their operation and which way this bank is working.

2 If the work load is increasing then the manager level persons whose are the keys persons in the banks there duty is to motivate to the employees so in this situation

They have to treat like a friend not like a boss because they can go to the stress that wills the main reason for labour turnover.

3 That persons whose are working with the bank from the long run bank can give them the priority for some benefits like promotion, extra benefits, some perks, and bank can start some gift system which showed the care taking of their employees.

4 Bank can start the routine system of their employees which will be comfort for the bank and also for the employees by this they will not feel boring and they will take interest in the working in this way they cannot think to leave the great learning environment.

5 After merger bank can increase the salary of the employees because if the work will be uploaded then the easy way to reduce turnover is increased the salary of the employees.

6 After the merger bank have to be made balance between the HDFC bank customer and CBOP bank customer that will a big problem so for it CBOP staff can use in this way.

7 HDFC bank keep standard in the private sector so after merger it can be hearted by these problems so to maintain that optimum standard will also a big deal and how it will solute will also a great challenge for the bank and also for HR department of the bank.

8 Bank have to be maintaining the cultural environment as per the standard up to the banking environment now it will be the combination between the two environment which will motivate to work in a different environment and it will be new thing for both of the side which will motivate to each other.


As per your proposal dear,

Bank can understand how deeply you think on behalf of bank and also on behalf of the employee its right, bank faces so many problems but from bank point of view your proposal is limited up to operation department of the bank but banks are running so many operation, our dealing is also at the corporate level and we have to focused on all the matters it never be against the employees but it have to be covered the bank side also. After merger many problems will come but it will take time to adjust like some financial problem, relationship with customer,

Find Out How UKEssays.com Can Help You!

Our academic experts are ready and waiting to assist with any writing project you may have. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs.

View our services

Employees satisfaction, training time adjustable, schedule of the bank operation, and target of the banking which will also change so there are so many matter after merger which I think you have to be point out and bank will expect you will study of all the matter which will reduce the labour turnover from bank point of view all the employees who leave the organisation cannot be analyse only by this way it’s ok it can be but I think you leave so many part in your proposal so you have to think at corporate level how can be minimise the problems at corporate level and how can bank reduce in a systematic and better way your step will be considerable but its incomplete so you need to do more research in this way.

With great regards,



The previous proposal which was rejected by the managing director of the bank, it was leave some issues related to human resource management so there were some steps which bank can take, these are

The banking transactions which include many processes have to be modified after the merger which also motivates its employees at corporate level.

The efficiency of worker will increase after the merger but it will expect some benefits like incentives perks etc which will reduce the labour turnover.

The balance between the consumer and their accounts was the main problem so it was also another issue but till the bank is not running in a one umbrella then the transaction will be different so the work will be done in a same manner.

Employees’ satisfaction will be preferred by the schedule time of bank then customer satisfaction will also complete.

By two banks combination also increases the no of customer so for staying the customer with the bank, bank will have to appoint new employee as a trainer which will also reduce the problem of labour turnover

Banking software will also modify in a new environment which incurrage the employee to learn something new in a corporate environment.


Banking sector is a very professional sector as compare to any other sector it shows the professionalism up to the standard. Banking sector is divided in a two sector public sector and private sector banks, in private sector HDFC is the largest bank in the private sector it comes in India when privatise came in the Indian market. Now it is the largest bank in the private sector it merge with centurion bank of Punjab due to expansion its operation and for getting the large no of benefits in the private sector banking system. But merger in a banking sector always comes with problem so problem may be in start but solution will be there in the future. So employees of the bank want they can be considered after merger at the maximum level but if it is not happen then the problem will comes in the shape of labour turnover and other way but problems always comes with the excellent solution which we learn from our activity. Banking transaction is day to day work which cannot be stopped if it’s happen for only one day then bank can go into financial losses and also customer dissatisfaction so the one day effect can be bad in the banking sector. So employee is always take prefer in the banking sector and their turnover will surely effect the day to day transaction because they are well trained doing the banking activity which increases the value of a bank employee. So it never happen if it will happen then the bank can cause in a great trouble then bank will have to be taken the various steps to stop it which will be necessary.


Cite This Work

To export a reference to this article please select a referencing stye below:

Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.

Related Services

View all

DMCA / Removal Request

If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: