HDFC Bank

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Not to be confused with Housing Development Finance Corporation.

HDFC Bank Limited
TypePublic
Traded as
  • NSE: HDFCBANK
  • BSE: 500180
  • BSE SENSEX Constituent
  • NSE NIFTY 50 Constituent
ISININE040A01034
IndustryFinancial services
FoundedAugust 1994 (27 years ago) (August 1994)
Headquarters
Mumbai, Maharashtra
,
India
Area served
India
Key people
  • Atanu Chakraborty
    (Chairman) [1]
  • Sashidhar Jagdishan
    (CEO)
Products
  • Credit cards
  • Consumer banking
  • Commercial banking
  • Finance and insurance
  • Investment banking
  • Mortgage loans
  • Private banking
  • Private equity
  • Wealth management[2]
RevenueIncrease ₹155,885 crore (US$22 billion)[3] (2021)
Operating income
Increase ₹61,636 crore (US$8.6 billion)[3] (2021)
Net income
Increase ₹31,857 crore (US$4.5 billion)[3] (2021)
Total assetsIncrease ₹1,746,870 crore (US$240 billion)[4] (2021)
Total equityIncrease ₹203,169 crore (US$28 billion)[4] (2020)
OwnerHousing Development Finance Corporation (25.7%)
Number of employees
120,093 (2021)[5]
SubsidiariesHDFC Securities[6]
HDB Financial Services[7]
Websitewww.hdfcbank.com
Footnotes / references
[8][9][10][11]

HDFC Bank Limited is an Indian banking and financial services company, headquartered in Mumbai, Maharashtra. HDFC Bank is India's largest private sector bank by assets[12] and by market capitalisation as of April 2021. It is the third largest company by market capitalisation on the Indian stock exchanges.[13] It is also the fifteenth largest employer in India with nearly 120,000 employees.[14]

History[]

HDFC Bank was incorporated in 1994 as a subsidiary of the Housing Development Finance Corporation, with its registered office in Mumbai, Maharashtra, India. Its first corporate office and a full-service branch at Sandoz House, Worli were inaugurated by the Union Finance Minister, Manmohan Singh. As of 30 June 2019, the Bank's distribution network was at 5,500 branches across 2,764 cities. The bank also installed 430,000 POS terminals and issued 23,570,000 debit cards and 12 million credit cards in FY 2017.[15] It has a base of 1,16,971 permanent employees as of 21 March 2020.[16]

Products and services[]

HDFC Bank provides a number of products and services including wholesale banking, retail banking, treasury, auto loans, two-wheeler loans, personal loans, loans against property, consumer durable loan, lifestyle loan and credit cards. Along with this various digital products are Payzapp and SmartBUY.[17]

Mergers and acquisitions[]

HDFC Bank merged with Times Bank in February 2000. This was the first merger of two private banks in the New Generation private sector banks category.[18] Times Bank was established by Bennett, Coleman and Co. Ltd., commonly known as The Times Group, India's largest media conglomerate.[19]

In 2008, Centurion Bank of Punjab (CBoP) was acquired by HDFC Bank. HDFC Bank's board approved the acquisition of CBoP for ₹95.1 billion in one of the largest mergers in the financial sector in India.[20]

In 2021, the bank acquired a 9.99% stake in FERBINE, an entity promoted by Tata Group, to operate a Pan-India umbrella entity for retail payment systems, similar to National Payments Corporation of India.[21]

Investments[]

A HDFC Bank branch in Hyderabad

In March 2020, HDFC (parent company of HDFC BANK) made an investment of ₹1,000 crores in Yes Bank.[22] As per the scheme of reconstruction of Yes Bank, 75% of the total investment by the corporation would be locked in for three years. On 14 March, Yes Bank allotted 100 crore shares of the face value of ₹2 each for consideration of ₹10 per share (including ₹8 premium) to the Corporation aggregating to 7.97 percent of the post issue equity share capital of Yes bank.[23]

Listings and shareholding[]

The equity shares of HDFC Bank are listed on the Bombay Stock Exchange and the National Stock Exchange of India. Its American depositary receipts are listed on the NYSE and its global depository receipts (GDRs) are listed on the Luxembourg Stock Exchange where two GDRs represent one equity share in HDFC Bank.[24]

Shareholders (as of 31 December 2015) Shareholding[24]
Promoter group (HDFC) 26.14%
Foreign institutional investors (FII) 20.4%
Individual shareholders 8.5%
Bodies corporate 7.5%
Insurance companies 5.38%
Unit Trust of India 8.65%
NRI/OCB/others 0.29%
Financial institutions/banks 2.75%
ADS/GDRs 18.78%

Corporate social responsibility[]

HDFC Bank's Parivartan initiative spent ₹535 crore in FY19-20[25]

Controversies[]

A HDFC Bank ATM in West Bengal.

On 2 December 2020, the Reserve Bank of India ordered HDFC Bank to temporarily halt the issuance of new credit cards and all planned activities under the bank's Digital 2.0 program citing incidents of outages in the bank's internet banking, mobile banking and payment utility services.[26][27]

On 29 January 2020, Reserve Bank of India imposed a monetary penalty on HDFC Bank for failure to undertake on-going due diligence in case of 39 current accounts opened for bidding in the initial public offer.[28]

A HDFC bank manager was arrested on charges of fraud, involving a sum of ₹59.41 lakh, in Odisha.[29]

Altico Capital and Dubai's Mashreq Bank have approached the Reserve Bank of India, accusing HDFC Bank of violating regulatory provisions by debiting part of the funds the company had raised through external commercial borrowing (ECB) and parked at the bank. They claimed that HDFC bank's decision to transfer money from the account may be a violation of the RBI's end-use rule.[30]

Awards and recognition[]

2020[]

  • India's Best Bank : Euromoney Awards[31]

2019[]

  • Best Bank: New Private Sector – FE Best Bank awards[32]
  • Winner in Innovation and Inclusiveness in Priority Sector Lending – 11th Inclusive Finance India Awards (IFI) 2019[33]
  • Ranked 1st in 2019 BrandZ Top 75 Most Valuable Indian Brands HDFC Bank was featured for the 6th consecutive year.[34]
  • Among The Most Honored Company List, Institutional Investor All-Asia (ex-Japan) Executive Team 2019 survey[35]
  • India’s Best Bank, Euromoney Awards for Excellence 2019[36]
  • Bank of the Year and Best Large Bank, Business Today – Money Today Financial Awards 2019[37]
  • Best Bank in India 2019, by Global magazine FinanceAsia.[38]
  • Ranked 60th in 2019 BrandZ Top 100 Most Valuable Global Brands[39] HDFC Bank was featured BrandZ Top 100 Most Valuable Global Brands 2019 for the 5th consecutive year. The Bank's brand value has gone up from $20.87 billion in 2018 to $22.70 billion in 2019.
  • Best Large Bank & Fastest Growing Large Bank in 2019, by Business World Magna Awards[40]

2016[]

  • Best Banking Performer, India in 2016 by Global Brands Magazine Award.[41]
  • Best Performing Branch in Microfinance among private sector banks by NABARD, 2016, Award for Best Performance in Microfinance[42]
  • KPMG study of India's Best Banks, Bank of the year & best digital banking initiative award 2016[43]
  • BrandZ Rankings, Most Valued brand in India for third successive year[44]
  • FinanceAsia poll on Asia's Best Companies 2015, Best managed public company – India[45]
  • J. P. Morgan Quality Recognition Award, Best in class straight through processing rates[46]

Further reading[]

  • Bandyopadhyay, Tamal (2013). A Bank for the Buck. Jaico Publishing House. p. 344. ISBN 978-8184953961.
  • Bandyopadhyay, Tamal (2019). HDFC Bank 2.0: From Dawn to Digital. Jaico Publishing House. ISBN 9789388423359.

See also[]

References[]

  1. ^ "rbi-approves-appointment-of-atanu-chakraborty-as-part-time-chairman-of-hdfc-bank". thehindu.com. Retrieved 22 April 2021.
  2. ^ "Balance Sheet of HDFC Bank". moneycontrol.
  3. ^ Jump up to: a b c "HDFC Bank Consolidated Profit & Loss account, HDFC Bank Financial Statement & Accounts". moneycontrol.com. Retrieved 24 August 2020.
  4. ^ Jump up to: a b "HDFC Bank Consolidated Balance Sheet, HDFC Bank Financial Statement & Accounts". moneycontrol.com. Retrieved 24 August 2020.
  5. ^ Bank, HDFC. "HDFC Bank Annual Report 2021" (PDF). hdfcbank.com.
  6. ^ Securities, HDFC. "About Us". hdfcsec.com.
  7. ^ "How HDB Financial Services Can Add To HDFC Bank's Long Rally". Moneycontrol. Retrieved 26 April 2021.
  8. ^ "Stocks". Bloomberg L.P.
  9. ^ "Sashidhar Jagdishan to be the new CEO of HDFC Bank". Moneycontrol. Retrieved 4 August 2020.
  10. ^ "Sashidhar Jagdishan appointed MD & CEO of HDFC Bank; He will take charge on October 27". the hans india. 17 October 2020.
  11. ^ "Composition of Board of Directors of HDFC Bank".
  12. ^ "HDFC Bank most valuable brand in India: WPP study". Livemint. Livemint. 10 September 2015.
  13. ^ "Largest bank by Market capitalization". MoneyControl. MoneyControl.
  14. ^ "HDFC Bank: Number of Employees 2006-2021 | HDB".
  15. ^ "HDFC Bank 2017" (PDF). Retrieved 1 December 2017.
  16. ^ "HDFC Bank". HDFC Bank. HDFC Bank.
  17. ^ "HDFC Bank – About Banking Services, Loans Scheme, Award, Contact Address, and more". business.mapsofindia.com. Retrieved 16 July 2016.
  18. ^ "HDFC Bank: Reports, Company History, Directors Report, Chairman's Speech, Auditors Report of HDFC Bank". profit.ndtv.com. Retrieved 16 July 2016.
  19. ^ Bandyopadhyay, Tamal (19 November 2012). "A Bank for the Buck". Live Mint. Retrieved 27 March 2020.
  20. ^ "HDFC Bank to acquire Centurion Bank of Punjab". Banknet India. Archived from the original on 1 December 2019. Retrieved 23 January 2016.
  21. ^ "Kotak Mahindra Bank, HDFC Bank To Acquire 9.99% Each In Ferbine". Moneycontrol. Retrieved 4 March 2021.
  22. ^ "HDFC to hold 7.97% stake in Yes Bank after infusing ₹1,000 crore". mint. 16 March 2020. Retrieved 8 December 2020.
  23. ^ "HDFC to hold 7.97% stake in YES Bank after Rs 1,000 crore infusion". The Economic Times. Retrieved 8 December 2020.
  24. ^ Jump up to: a b "HDFC bank listing & shareholding". Money Control.
  25. ^ "Corporate Social Responsibility (CSR): HDFC Bank spends Rs. 535 Cr on community development in FY 2019–20". 26 July 2020.
  26. ^ moneycontrol.com https://www.moneycontrol.com/news/business/rbi-halts-hdfc-bank-digital-activities-asks-bank-to-stop-sourcing-new-credit-card-customers-after-multiple-digital-failures-6183521.html. Missing or empty |title= (help)
  27. ^ "Explained: Why RBI has asked HDFC Bank to stop digital launches, new credit card sourcing". The Indian Express. 8 December 2020. Retrieved 8 December 2020.
  28. ^ "RBI imposes penalty on HDFC bank". rbi.org.in. Retrieved 29 January 2020.
  29. ^ "A HDFC bank manager arrested for Rs 59.41 lakh fraud in Odisha". The New Indian Express. Retrieved 16 August 2019.
  30. ^ Das, Saikat. "Altico and Mashreq approach RBI against HDFC Bank". The Economic Times. Retrieved 13 October 2019.
  31. ^ Bank, HDFC. "Press Release".
  32. ^ https://www.hdfcbank.com/content/api/contentstream-id/723fb80a-2dde-42a3-9793-7ae1be57c87f/7a11082e-9cf6-4c4f-9de3-7e9ff409ba76?
  33. ^ https://www.hdfcbank.com/content/api/contentstream-id/723fb80a-2dde-42a3-9793-7ae1be57c87f/97fcd69c-ffa7-4bac-ab8f-d123ad88d8aa?
  34. ^ Bureau, Our. "HDFC Bank retains ranking as India's valuable brand". @businessline.
  35. ^ "HDFC Bank Awards - Consistently Awarded among India's Best Bank" (PDF).
  36. ^ "HDFC Bank Awards - Consistently Awarded among India's Best Bank" (PDF).
  37. ^ "Business Today – Money Today Financial Awards 2019" (PDF).
  38. ^ "HDFC Bank bags the 'Best Bank in India' title by FinanceAsia magazine – expect this big measures in 2019 from the lender". Zee Business. 28 June 2019. Retrieved 28 June 2019.
  39. ^ "Millward Brown – Top Global Brands 2019". hdfcbank.com.
  40. ^ "Business world Magna Awards" (PDF).
  41. ^ "AWARD WINNERS 2016".
  42. ^ "HDFC Bank wins microfinance award from NABARD in Goa". The Times of India. 22 January 2016. Retrieved 1 March 2016.
  43. ^ "Bank of the Year/ Digital Bank: HDFC BANK". Business Today. Retrieved 1 March 2016.
  44. ^ "livemint". HDFC Bank is still India's most valuable brand: Brandz ranking. 22 September 2016.
  45. ^ "Asia's best managed companies, part 3". FinanceAsia. 20 March 2015.
  46. ^ "Top 10 Banks in India 2015". MBA Skool.

External links[]

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