PMS at HDFC with Sector, Company, Products & Services information.

1. Presented by :-
Jyotirmoy Pegu

2. Sector Information
 Consists of
 26 public sector banks
 25 private sector banks
 43 foreign banks
 56 regional rural banks
 1,589 urban cooperative banks
 93,550 rural cooperative banks
 Rs. 81 trillion (US $ 1.31 trillion) ( July 2016 )
 Total banking assets in India is expected to cross US$ 28.5
trillion in FY25.

3. 495
597
819
857
977
1174
1342 1313 1349
1479 1466
0
200
400
600
800
1000
1200
1400
1600
FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Growth in Deposits (US$ billion)

4. Investments and developments in the sector
 RBL Bank Limited, an Indian private sector bank - Rs 330 crore
(US$ 49.6 million) - UK-based development finance institution
CDC Group Plc.
 The State Bank of India (SBI) - The World Bank for a Rs 4,200
crore (US$ 625 million) - grid connected rooftop solar
photovoltaic (GRPV) projects
 Kotak Mahindra Bank Limited - 19.9 per cent stake in Airtel M
Commerce Services Limited (AMSL) for Rs 98.38 crore (US$
14.43 million – Airtel Money
 Bandhan Financial Services - Rs 1,600 crore (US$ 234.8 million)
- Two International Institutional investors - Microfinance
business into a Full service bank

5. Structure of Organized Indian Banking System

6. Type of Commercial Banks Major Shareholders Major Players
Public Sector Banks Government of India
SBI, PNB, Canara Bank,
Bank of Baroda, Bank of
India, etc
Private Sector Banks Private Individuals
ICICI Bank, HDFC Bank, Axis
Bank, Kotak Mahindra
Bank, Yes Bank etc.
Foreign Banks Foreign Entity
Standard Chartered Bank,
Citi Bank, HSBC, Deutsche
Bank, BNP Paribas, etc.
Regional Rural Banks
Central Govt,
Concerned State Govt and
Sponsor Bank in the ratio
of 50 : 15 : 35
Andhra Pradesh Gramina
Vikas Bank, Uttranchal
Gramin Bank, Prathama
Bank, etc.

7. HDFC BANK
Overview
 Promoted by- The Housing Development Finance Corporation,
a premier housing finance company of India (setup in 1977)
 Founders - Ravi Maurya and Hasmukhbhai Parekh.
 An initial share capital of Rs. 100 lakh
 5.6 million cumulative units financed
 Gross loans of Rs.3.1 trillion
 Over 1.8 million Deposits Accounts
 More than 2500 branches and over 3000 ATMs in over 550
cities in India
 All branches linked on an online real-time basis

8. Products and Services
Resident Indian
 Home Loans
 Home Improvement
Loans
 Home Extension loans
 Plot Loans
 Short Term Bridging Loans
 Rural Housing Finance
 HDFC Reach
 HDFC Star
Non Resident Indian
 Middle East
 United Kingdom
 Singapore
 Other Locations

9. Performance Management System
Assess
Review
Plan
Develop
Perform
PMS
Establishing performance
standards
Communicating standards
and expectations
Measuring the actual
performance
• Comparing with standards
Providing Feedback
Decision making/Taking
Corrective actions

10. Management By Objective
The MANAGEMENT BY OBJECTIVE (MBO) is designed and implemented in such a way that
the individual employee and the subordinate line manager planned the actual monthly
targets and outcomes to be achieved by each employee in a given time period.
Goals
Employees
Line Managers
In line with
Organizational
objectives

11. 360 degree Appraisal
Self Appraisal by
employee
Pre-appraisal
meeting
Appraisal by peers,
subordinates and
HR/line managers
Appraisal
Evaluation
Post-appraisal
meeting

12. Graphic Scale Rating
GRAPHIC RATING SCALE is a scale that allows the rater to indicate
an employee’s performance on variety of job behaviors..
Employee is rated on number of scales each related to certain
job or performance dimension such as
 on the basis of job knowledge
 on work ethic
 quality of work
 initiative and teamwork with a scale ranging from non-
existent, below- average, average, above-average and
excellent.

13. Why PMS is helpful?
Helps in combining individual’s goals to strategic,
administrative and informational organization’s goals.
Strategic Goals
Administrative Goals
Information Goals

14. PMS in HDFC
 Ongoing Process but for the appraisal of employees conducted
on annual basis
 Does not focus on Contribution and improvement for
employer or employee but
 Identify the effective and ineffective performer during the
monthly review meeting
 Done as per the Graphic Rating Scale Method
 360 degree model – Self-appraisal, peer, immediate
supervisor, and line managers or HR managers
 Parameter for performance appraisal – combination of
competencies required from the job and behavioural traits
 KRA’s designed for each job – designing and evaluation of each
employee
 PMS in HDFC – retention of employees, recruitment system,
organizational culture and development of employees

15. Pros And Cons
PROS:
 Easy to design and use
 Permits a statistical tabulation of scores of employees
 Allow employer to make quantitative comparisons
 Involve low usage cost
 Valuable for effective performance
CONS:
 Likely influenced by rating errors
 Arbitrary and Subjective in nature