DECLARATIONIKALLUhereby declare that the project titledRECRUITMENT ANDSELECTION PROCESS IN HDFC BANKis my own work and efforts which iscompleted under the supervision of Ms.MAMTA CHAUDHARY.The Researchreport has beensubmittedtoSubharti Ui!"rsit#$ M""rutfor thepurpose of the compliance of any requirement of any examination or any degree earlier. KALLU M.B.A. I% S"& R'(( N'. ) *+,*-./**+1ACKNOWLEDGEMENTWhen a person is help, guide and co-operated his or her heart is ound topa! gratitude"#It is not a single mans effort which is sufficient for the accomplishment ofa Research. arious factors! situations and persons integrate to provide thebackground for accomplishment ofa taskrequirestheeffort ofso manypeople and the work is no different.I acknowledge here the names of those people who have been instrumentalin preparation of this Research.I am sincerely indebted to Ms. Ma&ta Chau0har# "#aculty! $anagement!%IT&! $eerut' for his valuable suggestion and inspiration to undergo thisstudyandhis unstiltedhelpwhichhegavefor thecompletionof thisResearch.$y grateful thanks are also due to various others technocrats! who inspireoftheremultifariouspre(occupation! werekindenoughtosparetimetogrant me personal help and others cooperative activities. I would also liketo thanks co(operation for providing the recruitment )selection andsupplemental information used in this study.KALLU2PREFACETh" 1ur1's" '2 r"s"ar3h r"1'rt 4as t' ("ar th" 1ra3ti3a( a11(i3ati''2 R"3ruit&"t a0 S"("3ti' Pr'3"ss a0 its i&1'rta3" i HDFC ba5a('6 4ith th" HR 1'(i3i"s '2 HDFC ba5 4hi3h 1ri0"s its"(2 t' b" th"&ar5"t ("a0"r.7hi(" 3arr#i6 'ut th" stu0# I ha!" 6ai"0 a 6''0 a&'ut '2 5'4("06"a0 isi6hts '2 h'4 HR 0"1art&"t 4'r5s but I ha!" t'u3h"0 th" ti1 '2i3"b"r6. Th"r" 4as &'r" t' ("ar but 0u" t' 3'strait '2 ti&" it 4as 't1'ssib(". Th"HRD&aa6"rhas t'4'r54ithth"&issi'ar#s1irit.U(i5" &a# r'("s i a 'r6ai8ati' 4h"r" ta6ib(" sh'rt) t"r&b""2its 3a b" 'btai"0$ it is 0i22i3u(t 2'r HRD 2u3ti'ar# t'0"&'strat" a# ta6ib(" sh'rt) t"r&a33'&1(ish&"t. Y"t HRD&aa6"rsar"t"&1t"0t'sh'4t'th"t'1&aa6"&"t$ (i"&aa6"ra0th"&s"(!"sthat th"#ar"&a5i6thi6sha11"thr'u6htraii61r'6ra&$ r"3ruit&"t9 s"("3ti'. I HDFC ba5 a &"ti3u('us(# atura( t"a& sta0s at th" !"r# h"art '2th" 6r'u1. :$*** P"rs'"( "!i3" 1"r2"3t 3a&ara0"ri". Ast"a02ast0"0i3ati' t' ;ua(i2#a attai&"t'2&a'! 34#0 was the clear leader. I4;I ;ank! however took the cakeby doubling its net profit! which reached Rs.,:.// crores in $arch 1:::.Thejumpinprofits canmainlybe attributedtonon(traditional sectors suchascommission! exchange! brokerage! and profit on sale of investments.1718RBI POLICIESTheR;Idoesnot interfereindeterminingtheprimelendingratesforcommercial banks. The onus is on banks to do so. R;I regulates interest ratesonsavings accounts!exportcredit! andcredit forsmalland tinysectors.Therates fixed by R;I are quite low at 8>! 7>! and 5> respectively for ;ank Rate!Repo Rate! and savings account rate. #ixing rates on bank credit is thediscretion of the banks. Though banks are allowed to offer variable interest rateson longer(term deposit rates! they continue to offer fixed deposit rates.0urrent account transaction norms easedEorms oncurrent account transactions were eased! inline withthe#oreign &xchange $anagement 6ct "#&$6'. The ;asic Travel fixedrate Repowill also be withdrawn. The facilities ofcollateralised lending and Tier(I refinance facilities will continue. 19The 0entral government has grantedapproval tobanks duringthe currentfinancial year to make a foray into forward trading in gold by including gold onthe list of commodities eligible for hedging under the #orward 0ontract"Regulation' 6ct! 2/71.$&6%DR&% 64-*T&4 ;J R;I$easures to increase liquidity and decrease the cost of funds to banks ;ank rate cut by 2> from .> to 8> 0RR cut by :.7>! from .> to 8.7> Repo rate cut by 2>! from ,> to 7>%avings deposit rate for scheduled commercial banks cut from 5.7> to 5.:>2021MABOR COMPETITORS%T6T& ;6EF -# IE4I6 It is IndiaKs largest bank with assets worth Rs.1! ,27 billion. %;I also has thedistinction of having the worlds largest branch network of /!::: branches. Thebank has a share of about 11> of IndiaKs loans and deposits! and is a top playerintrade financeandforex. Throughits subsidiaries! %;I is alsoaleadingprovider of other financial products likemutual funds! investment banking!housingfinance andfactoring. %;I has a market share of one(fifthof thebanking sector in India. Eationali=ed banks and %;I and its subsidiaries formthe heart of the Indian banking system. These two entities operate 8:> of thetotal branches spread across the length and breadth of India. ;6EF -# IE4I66s one of the leadingpublic sector Indianbanks! ;ankof India has thedistinctionofbeingthefirstbanktoopenabranchoutsideIndia.Thebank!whichcurrentlyhasoverseasoperationsinabout 2:countries! isoneoftheleaders in financing foreign trade. It is one of the few Indian banks that providetele(bankingfacilities! Remote 6ccess Terminals for corporate clients! and%ignatureRetrieval %ystem. %omeoftherecent foraysmadebythebankinterms of its business operations include bullion business and demat services. 2234#0 ;6EF Itis a pioneer in terms oftheintroduction andadoptionof a model bankingpolicythat suits Indiaandother developingcountries. Thebank! whichissynonymous with progressive banking in India! has a strong presence in ruralIndia. The bankwas nationali=edin2/,/. 34#0;ankhas correspondentrelations with 5:: banks from all over the globe. The bank is also one of theleading players in the foreign exchange market.0itibank! idbi! hdfc!hsbc23CHALLEN@E FOR THE INDIAN BANKIN@ SECTORIndian banks have a long way to go before they reach the si=e of theirinternational counterparts. &ven the biggest Indian bank! %tate ;ank of India! isnowhere onthe international scale! withassets inthe range of I7:billion.6bsence of significant scale benefits and higher implicit costs of severalservices are perpetuating the poor ranking of Indian banks in the internationalleague tables. %hareholdingstructure! governmentregulationsandsheersi=eofthecountryensure that the existence of Indian banks is not at stake at this stage. Ghat is atstake is the banking support that is available for Indian economic activity! andtherebytheinternational competitivenessof varioussectors. Ghat isalsoatstakeisthescopefor thebankingindustrytoearnsuperior returnsthroughdifferentiated wider services.#urther! it is quite conceivable that with passage of time! as government holdingin banks is progressively divested! regulatory authorities will be unable to holdbacktheinternational giantsfrombuyingout Indianbanks. &veneconomieswith a Ldomestic mindsetL! such as #rance and Bermany! have been forced tobow before the international capital market forces.24It would be a shame if painstakingly built retail strength is offered on a platter tosome predator. The challenge can be met through some concerted action (25BovernmentThe Bovernment needs to do away with artificial fragmentation ofthefinancial sector. 6caseinpoint is the segregationof banks andfinancial institutions induced by policy. If this is changed! we may wellsee mergers between the two sectors to create organi=ations of si=e. Ghynot amerger of Industrial 4evelopment ;ankof Indiawith;ankof;aroda! or even better with %tate ;ank of IndiaM This would definitelyleadtoamergerbetween34#0and34#0;ankandforthat matterbetween34#0and34#0;ank. Thepossibilitiesareinterestingandnumerous. 4omestic ;anks4omestic ;anks ( private as well as public ( need to continuously exploreoptions toacquire or mergewith otherinstitutionstoenhance their si=e!serviceor skill(set. This couldalsomeanlookingbeyondthenationalboundaries as truly global corporations do.Eew InitiativesThe recent crisis in the #ar &ast has demonstrated the need for arobust banking sector. Therefore the wholestructure of RegionalRural;anks "RR;s' and Drban 0o(operative ;anks "D0;s' needs to bestrengthened. The focus that #$0B companies such as 3industan 9everhavegiventotherural sectorprovesthat privatesectorinterest isnot26limitedtothecitiesandmajor towns. Technological changes"suchaswireless communication! net etc.' have drastically changed thecommunications scenario. This may be the time to come out withinteresting initiatives with regard to structure of RR;s and D0;s so thatprivate sector organi=ations ( banks as well as non(banks ( play a greaterrole in meeting the needs and aspirations of hitherto neglected parts of thecountry. %ocial considerations The full benefit of mergers can only be reali=ed if they are followed upwith some hard measures such as re(location ? closure of branches!rationali=ation of employee strength etc. It would be a welcome change if themanagement and unions collaborate in seeking appropriate social security fromthe Bovernment ( financed out of the divestment of stake in these banks. Indian banking has to operate with a global mindset even while fulfilling localbanking requirements. ;y joining in the effort to make this happen! we will getthe banking service we need. &lse! we will deserve the banking service we get.27R&0RDIT$&ETRecruitment andselectionare the most important functions inanorgani=ation because with the help of these functions the management selectsthebestavailablecandidatefromabatchofthem.Theorgani=ations! inthisgrowing competitive world! need to have the best of the manpower so as to havean edge over its competitive.6ccording to #lippo!"Recruitment is the process of searching forprospective employees and stimulating and encouraging them to apply for jobsin an organization." In the words of Joder!"Recrutiment is a process to discover the sources ofmanpowertomeet therequirementsof thestaffingscheduleandtoemployeffective measured for attracting that manpower in adequate numbers tofacilitate effective selection of an efficient working force."The recruitment needs can be classified into( *lanned. 6nticipated. Dnexpected.28 *lanned need arise from changes in the organi=ation and retirement policy.These occur due the expected changes in the organi=ation so the managementcan make a proper policy for it. 6nticipated need refer to the movements in personnel which an organisationcan predict by studying the trends in the internal and external environments.Resignations! deaths! accidents and illness result in to the unexpected needs.FEATURESA Recruitment is a process or a series of activities rather than a single event. It is a linking activity as it brings together the employers and employees. It is positive process because in this activity the employers want to havethemaximumnumberofjobseekerssoastohaveawiderscopeforchoice ultimately leading in spotting right persons for job. It is an important function as it makes it possible to acquire the numberand type of persons required for the effective functioning of theorgani=ation. Itisanongoingfunctioninalltheorgani=ations! butthevolumeandnature of recruitment varies with the si=e! nature and environment of theorgani=ation.29 It is a complex process because a number of factors affect it ((the natureof thejoboffered! imageof theorgani=ation! organi=ational policies!working conditions etc.SOURCES OF RECRUITMENTATh" !ari'us s'ur3"s '2 r"3ruit&"t ar" ) It"ra( S'ur3"sA I3(u0") *resent &mployees who can be transferred or given promotions. The retired and retrenched employees who want to return to the company. 4ependents and relatives of the deceased and disabled employees. E