Information System Analysis On Hdfc Bank

Information System Analysis On Hdfc Bank As part of the RBIs liberalization of the Indian Banking Sector in 1994, The Housing Development Finance Corporation Limited received an in principle approval to set up a bank in the private sector. The bank was registered as HDFC Bank Limited, in August 1994 at Mumbai, India. HDFC Bank commenced its operations as a Scheduled Commercial Bank in January 1995. HDFC is one of the Indias premier housing finance company and it experiences an impeccable track record in Indian market as well as internationally. overview HDFC Bank provides a wide range of financial products, assistance and services to its more than 18 million customers across various hundreds of cities in India using multiple distribution channels including ATMs, phone banking, mobile banking and net banking. HDFC Bank is a dynamic bank, with a young and zealous team determined to achieve the vision of becoming a world-class Indian bank. The business philosophy is primarily based on four core values Customer Centred, Operational Excellence, Product Leadership and People. With the belief that the ultimate identity and success of the bank will reside in the exceptional quality of our people and their extraordinary efforts, the bank is proving to do exceptionally well. As on the year ended March 31, 2010, the Bank had a total income of Rs. 19,980.5 crores and net profit of Rs. 2,948.7 crores as against Rs. 19,622.9 crores and Rs. 2,245.0 crores respectively in the previous year signifies the growth and scope of the bank.The bank has three principal business sectors: 1.retail banking, 2.wholesale banking and 3.treasury operations. vision and mission HDFC Banks mission is to be a World Class Indian Bank, maintaining high standard against international standards, putting forward best practices in terms of product offerings, service levels, technology, audit compliance and risk management. The main objective is to continue building excellent customer franchises all across distinct businesses so as to be the best provider for target retail and wholesale customer segments, which will result in healthy profits, consistent with the Banks risk appetite. HDFC Bank is dedicated to do these while also ensuring the upmost levels of ethical standards, integrity and regulatory compliance. Business strategy: Increase the market share in Indias banking and financial services sector by a disciplined growth strategy aiming at balancing quality and growth in profitability. Enhance its technology and open saleable systems in order to deliver increased number of products to increased number of customers and to hold operating costs; Maintain high standards through credit risk management; Develop more and more innovative products and services that attract its targeted audience and address inefficiencies in the Indian market; Develop products and adapt to services that reduce its cost of funds; Aim at healthy earnings growth in financial segment with low volatility. Infrastructure and Operations Profile HDFC Bank was incorporated in August 1994, and, currently has an nationwide network consisting of 1725 Branches and 4232 ATMs in 779 Indian towns and cities. Refer figure 1. HDFC Bank in India operates on the following basic segments: Personal Banking: Includes all financial deals between a commercial bank and an individual. Wholesale Banking: Includes all sorts of financial dealings within Corporates, medium and small Enterprises, Financial Institutions and Trusts as well as the Government Sector. NRI Banking Includes personal banking relations with the Non Resident Indians. HDFC Bank has been recognized, felicitated and awarded by a number of organisations. MANAGEMENT INFORMATION SYSTEM The Banking sector is pretty much used to the concept and implementation of Management Information System since decades. Earlier during the start of 1980s the term MIS was used for the mainly making reports and to analyze the data.. This was then send to Top management, and decision were taken by them accordingly. Management of Information system is really benefitial during taking decisions and is a collected result of both- Data mining and Data Warehousing. Refer figure 2 for benefits of MIS. INFORMATION AND COMMUNICATION TECHNOLOGY ARCHITECTURE: Hub And Spoke Architecture The head quarter of HDFC is located in Mumbai. It has a network based IP which is centralized and the branches are spread across the nation and is connected to the main data centre at Chandvilli in Mumbai. Maharashtra. Network: A regional hub is defined such that the branches are categorized under different regions each having its regional hub. At the main region, the different branches coming under a single location are connected to the hub. These are then further connected to the central data centre using pipes having bandwidth of either 2 Mbps or 64 Kbps.There are two hubs instead of one. In a matter of years to come, HDFC Bank has decided to put connections with the feature of built-in redundancy in the network itself. Like, Madras could be connected to Bangalore and Kolkata, with all three of them being connected to Chandivili. Therefore, if the Kolkata-Chandivili link fails, then Kolkata will use the Madras link to connect to the Chandivili data center. VSAT solutions is used for networking. Servers The bank uses SCO Unix and MicroBanker from i-flex solution. With an increase on number of Banks branches, it became necessary to consider Unix/RISC operating systems instead of an Intel Unix platform, and thus the bank selected the Sun platform. Presently the bank is running its application on a Sun platform. As there was a rise in the volume of transactions, the total number of branches as well as the number of users has resulted in up-gradation of the hardware platform also.The database used is DAS and network SAN. Banking applications The software used by the bank for corporate and retail banking are different. The reason for this is that there was no package which could cater to both the domains. For the corporate sector HDFC Bank used MicroBanker after Flexcube. The Flexcube UBS uses a Compaq Alpha box-GS160. It also uses SAN solutions from Hitachi Data Systems. For the retail sector, the bank uses an offering from i-flex solutions : Finware. There were no issues faced by the bank regarding migration as the products they used were easily upgradeable and were usually supplied by the same set of vendors. The vendors also ensured that the programs that they were supplying had the feature that could conveniently help in migration or upgradation. Storage The bank currently using SAN technology, but they may have to consider NAS technology in the future. This calls for huge investment as various areas such as backup, disaster recovery need to be addressed. The bank has to store data according to the RBI guidelines for seven years, and as it is not necessary to store the data on the net-the bank uses tapes for off-line storage of data. The bank anticipates storage costs to decrease, and bulk purchases would be economical. Disaster Recovery setup The approach is that is needed to protect our data first as the basis for a business continuity plan. The disaster recovery site of the bank is located in Chennai. The data which is tored at the main site is also replicated in real-time online at the site in Chennai as well. Servers store the data at the site of DR and constant replenishment takes place. Incase of any disaster , the data is replicated and is available to use. Hence , both the bank and the customer have a feeling of security. BANK : HDFC BANK Vendor NCR: To provide Cheque Clearing solutions to cheque clearing operations department About NCR: (Refer figure 3) NCR is one of the prime leading vendor of payment and image processing solutions. Its core objective is to assist the financial institutes and companies to deliver products incorporating innovation in the constantly changing scenario of payments. The solution enables transaction with references to items to be captured digitally centralized or distributed to ATMs, branches, processed, archived and exchanged. These solutions are built with intensive knowledge and consulting and analysis by experts, integrated with a full range of high quality imaging transports and ATMs, and supported by a wide range of global customer services.. Other solutions included are like the cheque image processing, image storage and the retrieval, cheque and document imaging software etc. CHEQUE CLEARING PROCESS (INDIA): (Refer figure 4 and 5) The advent of the clearing process takes place with the cheque being deposited in the bank/branch from where it is drawn. The delivery of the cheque takes place to the specific branch or bank. Then the cheque is sent for payment if there are funds available and if the banker is convinced that it is genuine. In case if the cheques are left unpaid, they are returned to the present bank through another clearing which is known as Return Clearing. Signature Verification System (SVS): Refer Figure 6 The Signature Verification System further strengthens the entire process of verification by complete electrification of the whole process. By taking the image of the signature cards, the operators now can have direct access to the stored image of the cheque as well as signature card ,during the time of verifying cheques. The end result is that the entire process of cheque signature verification is carried out at a faster rate, also being more accurate as well as cost-effective compared to that of any other manual process. CONCLUSION: A management information system is a process which necessitates the manager with the information required to manage an organization efficiently and effectively. MIS is considered an essential component of effective and reasonable business decisions. The report concludes that Management Information System is par beneficial to the Banks for its transaction. We have seen the cheque Clearing Process and the involvement of IT for the same.IT contribution to banking Sector has really facilitated fast communication and real time networking. The Signature Verification System ensure the security and thus maintains the faith of the customer. Thus, the degree of customer satisfaction is enhanced. Comment on the HDFC Bank HDFC Bank has done exceptionally well considering its enthusiasm in MIS. Along with NCR it has received many award for preforming excellent. IT has been falicitated with the Multi-Channel Capability award for using the NCR APTRA eMarketing solution by NCR. IT facilitated the customers; communication via email,mobile services etc. It has also received the best ATM Installation and Management Solution award for HDFC Bank adapting to the NCR APTRA eMarketing solution to enhance customer service, reduce ATM transaction times and operating costs, and increase new revenue channels through its ATM network. Thus, establishing such IT infrastructure has reduced cost of paper for letters and faster access to the services available. It has also enhanced the customer experience. But, a lot more can be done on security which can again expand the applications for the customers and will built a sense of trust for the same. REFERENCES 1. www.hdfcbank.com 2. www.scribd.com 3. www.ncr.com 4. www.banktech.com 5. www.rbi.org.in 6. wiki.answer.com

Kingdoms of medieval civilization

The fall of Rome and the rise of Germanic kingdoms marked the end of ancient times and the beginning of the Middle Ages. During the Middle Ages, the center of European culture shifted from the lands around the Mediterranean Sea to regions that had barely been touched by Greco-Roman civilization. A new civilization, medieval civilization, took shape during the early Middle ages (A.D. 500-1050). There were few strong rulers or governments in this period, and a political system grew up in which power was divided among many local lords (Perry, 1988,). By the fifth century, Germanic peoples had established kingdoms in Italy, Spain, Gaul, and England. These lands formerly belong to Rome (Crofton, 1994, 254).   At its height, the Roman Empire had been a world of cities with a rich culture. By the end of the Empire, many towns were abandoned as people fled to country estates. The center of political, social, and economic life shifted from city to countryside. Since the Germanic invaders were rural people, they did not try to revive the old cultural centers or build new ones of their own.   The decline of Roman rule left the western and central Europe disorganized. A new medieval style of government appeared in the kingdom of the Franks. A Germanic people, the Franks had migrated westward from their homeland in the valley of the Rhine River. As Rome’s border defenses weakened in the fourth and fifth centuries, Frankish tribes settled in Roman territory. About 481 a Frankish ruler named Clovis united the various Frankish tribes and conquered the Romans and other Germans in northern Gaul. In 768, Charlemagne became king of the Franks. Charlemagne was an extraordinary figure in medieval history. Charlemagne expanded his kingdom by conquering the Lombard kingdom in Italy and taking part of northern Spain from the Muslims. He added Bavaria (in what is now Germany) to his kingdom and after terrible wars forced the Germanic Saxons to submit to his rule and convert to Christianity. Charlemagne was crowned Emperor of Rome in 800 which indicated that the Roman idea of strong centralized government had not died. Charlemagne’s empire did not, however, have Roman law or political organization. Moreover, it had no great cities that could serve as centers of trade and learning. What Charlemagne did however, was to blend Germanic, Christian and Roman elements that came to characterize the civilization of the Middle Ages (Perry, 1988, 141-143). The kingdom of Charlemagne break apart after his death and divided Europe which was then   threatened with invasions from the Viking raiders ( Vikings are the ancestors of the Swedes, Norwegians and Danes of today) from the north ,   the Magyars from Central Asia , and the Muslims. The terrible invasions went on until early in the tenth century and had terrible consequences for Western Europe. Like the earlier Germanic invasions, they weakened central authority, disrupted trade, hurt agriculture, and left settlements and monasteries in ruins. Few kingdoms had the capacity to protect its own people so that people no longer look to a central ruler for security. They turned instead to local lords who had their own armies. As a result, western Europe had entered an age in which lords, not kings, held political power. In fact, kings at that that time were regarded only as chief feudal lord. Living in age of warfare and disorder, lords sought allies among their fellow nobles. The basis for these alliances was the lords’ land. In exchange for military assistance and other services, one lord granted land called a fief to another noble. The system of relationships that grew out of this granting of fiefs was called feudalism. It became the main political arrangement in Europe after the breakup of Charlemagne’s empire in the ninth century. In some ways, feudalism grew out of the traditions of the Germanic tribes. Feudal law included many elements of Germanic law and feudal attitudes reflected Germanic respect for the warrior (Perry, 1988,144-145 ). Because they lived in violent times feudal lords built homes designed to serve as fortresses .The first castle was built in the ninth century at the time of the Viking raids.   These castles were encircled by massive walls and strong guard towers.   Sometimes, feudal lords would fight against each other for supremacy (Crofton, 1994, 265). It is obvious therefore, that because of the disorder of territories brought about by the fall of Roman Empire, the Germanic kingdoms flourished,   which combined the Germanic, Roman and Christian elements that characterized the western kingdoms of the medieval civilization. And as invasions plaqued the west from all quarters, small self-protecting feudal kingdoms governed by nobles or lords was established. References Crofton, Ian (e d). (1994). The Guinness Compact Encyclopedia. London: Guinness Publishing Limited Perry, Marvin. (1988). A World in History. New York: Houghton-Mifflin, Inc.         

A Journey from HRM to SHRM Essay

The radical change taking place in the workplace and the work force has led to the dramatic evolution of traditional human resource management to strategic human resource management. The days of the strictly administrative human resource function are over. HR management must now be considered a critical strategic partner and must contribute to the overall objectives of the company. Strategic HR management is characterized by focusing more on strategic rather than operational issues. However, the administrative work must still be done efficiently. Strategic HR management involves making the function of managing people the most important priority in the organization, and integrating all human resource programs and policies within the framework of a company’s strategy. Strategic HR management recognizes that all decisions on finance, marketing, operations or technology are made by an organization’s people. Strategic HR management involves the development of a consistent, aligned collection of practices, programs, and policies to facilitate the achievement of the organization’s objectives. It considers the implications of corporate strategy for all HR systems within an organization by translating company objectives into specific people management systems. The most important consideration of strategic HR management is that there is no one best way to manage people. Therefore, the specific approach and processes will vary from organization to organization. It may even vary in an organization with clearly defined business units or functional areas. However, all HR programs and policies must be consistent and must therefore be integrated within a larger framework, leading to the facilitation of the organization’s vision and its objectives. Human resource management has been traditionally defined as the set of philosophies, processes and procedures a firm uses for the following four basic tasks: †¢ Managing the entry and exit process. The HR function has normally been responsible for recruiting people the organization would need in the future. Therefore, manpower forecasts are made and a corresponding plan is made. HR managers have also been involved in the exit or separation process. This is normally done by retirement or by having the employee fired. †¢ Managing the growth and development process. There are traditional HR tasks such as orientation or socialization, training and development, and performance appraisal. Processes are also designed so that employees understand the overall scope and direction of the organization. †¢ Managing the reward and recognition process. Rewards come through the administration of compensation and benefits, and recognition comes in the form of promotion, job assignments and rotation. However, the process of rewards and recognition includes the countermeasures of demotions and disciplinary action. Performance appraisal is also a critical input into the reward and recognition system. †¢ Managing the overall organization climate. In the highly competitive and rapidly changing business environment of today, it is necessary to foster a climate that challenges employees to better levels of performance. Of course, the organizational climate is not a variable to be managed or designed. However, it is necessary for all the organization’s processes and procedures, from its compliance with the law to its new strategic initiatives, to be aligned. In the shift from traditional HR to strategic HR, there are a number of issues which HR practitioners must contend with. The first is whether the main responsibility for people management programs should rest with staff specialists in the corporate HR department or with the line managers who are the ones most in contact with the workers. Traditional HR assumes the role of handling transactions as they arise. These may involve compliance with changing laws, rectifying problems between supervisors and subordinates, recruiting and screening applicants for current needs and basically responding to events after these happen. Strategic HR is much more transformational and realizes that the success for any initiative form growth, adaptation, or change within the organization are dependent upon the employees who utilize any change in technology or produce any changes in the organization’s product or service. HR, therefore, plays a transformational role by assisting the organization in identifying and meeting the larger challenges it faces in its external environment by ensuring that the internal mechanisms that facilitate change are in place. Traditional HR departments must, therefore, rethink, redefine and re-evaluate their roles. HR managers must learn to operate their departments more like a business. Businesses must have clear strategies, outcomes, products, services and structures to attain specific objectives which are aligned to the corporate objectives. HR practitioners must answer the following questions: †¢What is the HR strategy? Strategy defines how a business positions itself and allocates resources to products to deliver value to customers. An HR strategy articulates the purposes of HR within the firm, the deliverables or outcomes from HR work, and the services delivered by the HR department. †¢What are the products or services of HR? Many typologies of HR work exist to describe types of HR processes. The new HR typologies will identify new HR products or services required to meet changing business needs. Many of these new products will ensure the flow of intellectual capital and knowledge within a firm, while others will ensure the development of a new generation of leaders within a firm. †¢How should HR be organized to ensure that the strategy is executed? Increasingly, organizations are being defined less by structure and more by how capabilities are acquired and developed. The tremendous growth of outsourcing is clear evidence of this development. As HR functions articulate clear strategies, products or services, they identify the organizational choices that ensure that capabilities, even across organizational boundaries, meet strategic goals. It is clear that human resource management must operate strategically. The central idea behind strategic HR management is that all initiatives involving how people are managed need to be aligned with and in support of the organization’s overall strategy. No organization can expect to be successful if it has people management systems that are at odds with its vision. As a prerequisite for understanding how to strategically manage human resources, it is necessary to understand the process of strategic management.

The For The Future Liabilities - 985 Words

In general insurance, Insurers make use of data gathered previously out of experience in order to predict the future liabilities. Such an estimate is made through the help of a â€Å"loss function† in decision making, as well as mathematical optimization. It is a common tendency to minimize the loss of the risk models and hence to do so are different methods applicable in today’s statistics. Frequentist expected loss, Bayesian expected loss are mostly used; with Bayesian statistics being the increasingly common methodology in actuarial science. Insurers also make an estimate of the expected claims that arise in the future years, and so they need to hold reserves based on the aggregate claim amount they could face in the near future. Hence one way of doing this is by using the aggregate claim model. Therefore, examining and comparing the different forms of loss distribution that could be used in the aggregate risk model analysis, besides investigating about issues surrou nding the application of Bayesian statistics in such a context. Acknowledgement: I would like to acknowledge my mentor Ms. Preeti Sahay, to have stood as a support for me throughout the project and in providing sufficient information for the project. Introduction: Insurance by nature is an uncertain subject. The Insured events occur at random times, particularly in a general insurance field, thereby the amount of claims are also random. 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