HDB Financial Services

Not to be confused with Housing Development Finance Corporation.

HDFC Bank Limited
TypePublic
ISININE040A01034
IndustryFinancial services
FoundedAugust 1994 (29 years ago) (August 1994) (via the merger between HDFC-HDFC bank)
Headquarters
Mumbai, Maharashtra
,
India
Area served
India
Key people
Products
RevenueIncrease ₹2.05 lakh crore (US$26 billion)[3] (2023)
Increase ₹615 billion (US$7.7 billion)[3] (2023)
Increase ₹459.97 billion (US$5.8 billion)[3] (2023)
Total assetsIncrease ₹25.3 lakh crore (US$320 billion)[4] (2023)
Total equityIncrease ₹2.85 lakh crore (US$36 billion)[4] (2023)
Number of employees
177,000 (1 July 2023)[5]
SubsidiariesHDFC Life
HDFC ERGO
HDFC Securities[6]
HDFC Asset Management Company
HDFC Mutual Fund
HDB Financial Services[7]
HDFC Credila Financial Services Limited
Websitewww.hdfcbank.com Edit this at Wikidata
Footnotes / references
[8][9][10][11]

HDFC Bank Limited (also known as HDFC) is an Indian banking and financial services company headquartered in Mumbai. It is India's largest private sector bank by assets and the world's fifth-largest bank by market capitalization as of August 2023, following its takeover of parent company HDFC.[12][13][14] Due to its size, it has been categorized as a Domestic Systemically Important Bank (D-SIB) by the Reserve Bank of India.[15][16] The bank was incorporated in August 1994 after its erstwhile parent HDFC received an 'in principle' approval from the RBI to set up a bank in the private sector, as part of its liberalization of the Indian banking industry,[17][18] and commenced operations in January 1995. With a market capitalization of $168 billion (as of 2 January 2024), HDFC Bank is the third-largest company on Indian stock exchanges.[19] It is also the sixteenth largest employer in India with nearly 1.73[20] lakh employees.[21]

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 then Union Finance Minister, Manmohan Singh.

As of 1 June 2023, the bank's distribution network was at 8,344 branches and 19,727 ATMs across 3,811 cities. It has installed 430,000 POS terminals and issued 23.5 million (23.5 million) debit cards and 12 million (12 million) credit cards in FY 2017.[22] It has a base of 1,77,000 permanent employees as of 1 June 2023.[23]

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.[24]

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.[25] Times Bank was established by Bennett, Coleman and Co. Ltd., commonly known as The Times Group, India's largest media conglomerate.[26]

In 2008, Centurion Bank of Punjab (CBoP) was acquired by HDFC Bank. HDFC Bank's board approved the acquisition of CBoP for ₹95.10 billion in one of the largest mergers in the financial sector in India.[27]

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 the National Payments Corporation of India.[28]

In September 2021, the bank partnered with Paytm to launch a range of credit cards powered by Visa.[29]

On 4 April 2022, HDFC Bank announced a merger with the Housing Development Finance Corporation.[30] Upon the completion of the merger, HDFC became the fourth-largest bank in the world by market capitalization.[31] The effective date of the merger was set to be 1 July 2023. After the merger takes place, HDFC, a housing financing corporation, will transfer its home loan portfolio to HDFC Bank. Also, the bank is giving home financing company depositors the choice of either withdrawing their money or renewing their deposits with the private sector bank at the interest rate that the bank is currently offering.[32]

Investments

In March 2020, Housing Development Finance Corporation, parent company of HDFC Bank, made an investment of ₹10 billion in Yes Bank.[33] 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.[34]

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 issued through JP Morgan Chase Bank.[35]

Its global depository receipts (GDRs) were listed on the Luxembourg Stock Exchange but were terminated by the board of directors following its low trading volume.[36]

Shareholders (as of 30 September 2021)[37] Shareholding[citation needed]
Promoter group (HDFC) 25.88%
Foreign institutional investor(FII) 38.30%
Individual shareholders 13.25%
Qualified institutional buyer 4.74%
Insurance companies 2.94%
Unit Trust of India/mutual funds 14.57%
Financial institutions/banks 0.4%
Central government 0.6%

Parivartan: Corporate social responsibility

Parivartan is an umbrella term for all of the corporate social responsibility initiatives by HDFC Bank.

HDFC Bank's Parivartan initiative spent ₹535 crore in FY 2019–20.[38]

HDFC Bank spent ₹6349.1 million towards Parivartan, in FY 2020-21. Out of ₹6349 million, over ₹1.10 billion was allocated and used towards initiatives focused on COVID-19 relief.[39]

HDFC Bank has pledged to become carbon neutral by 2032.[39]

Controversies

On 2 December 2020, the Reserve Bank of India (RBI) 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.[40][41]

On 29 January 2020, RBI 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.[42]

A HDFC bank manager was arrested on charges of fraud, involving a sum of ₹5941,000, in Odisha.[43]

Altico Capital and Dubai's Mashreq Bank have approached RBI, 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.[44]

On 27 May 2021, RBI imposed a penalty of ₹100 million on HDFC Bank for deficiencies in regulatory compliances with regard to its auto loan portfolio. The said penalty was imposed in regards to the contraventions of certain provisions of the Banking Regulation Act, 1949.[45]

In March 2023, HDB Financial Services suffered a data exposing the data of more than 70 million customers, including email addresses, names, dates of birth, phone numbers, genders, post codes and loan information belonging to the customers.[46]

Awards and recognition

2016

  • Best Banking Performer, India in 2016 by Global Brands Magazine Award.[47]
  • Best Performing Branch in Microfinance among private sector banks by NABARD, 2016, Award for Best Performance in Microfinance[48]
  • KPMG study of India's Best Banks, Bank of the year & best digital banking initiative award 2016[49]
  • BrandZ Rankings, Most Valued brand in India for third successive year[50]
  • FinanceAsia poll on Asia's Best Companies 2015, Best managed public company – India[51]
  • J. P. Morgan Quality Recognition Award, Best in class straight-through processing rates[52]

2018

2019

  • Best Bank: New Private Sector – FE Best Bank awards[53]
  • Winner in Innovation and Inclusiveness in Priority Sector Lending – 11th Inclusive Finance India Awards (IFI) 2019[54]
  • Ranked 1st in 2019 BrandZ Top 75 Most Valuable Indian Brands HDFC Bank was featured for the 6th consecutive year.[55]
  • Among The Most Honored Company List, Institutional Investor All-Asia (ex-Japan) Executive Team 2019 survey[56]
  • India's Best Bank, Euromoney Awards for Excellence 2019[57]
  • Bank of the Year and Best Large Bank, Business Today – Money Today Financial Awards 2019[58]
  • Best Bank in India 2019, by Global magazine FinanceAsia.[59]
  • Ranked 60th in 2019 BrandZ Top 100 Most Valuable Global Brands[60] 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.[citation needed]
  • Best Large Bank & Fastest Growing Large Bank in 2019, by Business World Magna Awards[61]
  • India's leading private sector bank: Dun & Bradstreet BFSI Awards[citation needed]

2020

  • Best Bank in India: Euromoney Awards[62]
  • Best Bank in India: FinanceAsia Country Awards[citation needed]

2021

2022

  • Best Bank In India: Euromoney Awards for Excellence 2022[64]

Gallery

HDFC Bank branches and ATMs
more images can be found on wiki commons.

See also

References

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Further reading

External links

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