HDFC Bank

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Not to be confused with Housing Development Finance Corporation.

HDFC Bank 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 sixth-largest bank by market capitalization as of January 2024, following its takeover of parent company HDFC.[12][13][14] The Reserve Bank of India (RBI) has identified the HDFC Bank, State Bank of India, and ICICI Bank as Domestic Systemically Important Banks (D-SIBs), which are often referred to as banks that are “too big to fail”.[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 $145 billion (as of April 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

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
.

The Bank's distribution network included 8,192 branches and 20,760 ATMs (cash recyclers; cash deposit and withdrawal) spread throughout 3,836 cities and villages as of February 29, 2024. The distribution network of HDFC Ltd., which consists of 737 locations and includes 214 offices of HDFC Sales Private Limited, has been integrated into the network of the Bank.[22] HDFC Bank is now the sole private bank operating in the Union Territory after opening a branch on Kavaratti Island in Lakshadweep.[23]

   

 

Products and services

A branch of HDFC Bank in Hyderabad

HDFC Bank provides a number of products and services including

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

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

HDFC Bank branch in Pune

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]

As per their shareholding pattern, the top shareholders are[37]

Shareholders (as of 30 September 2023)[38] Shareholding
1. Promoter group (HDFC) 0%
2. Foreign institutional investor (FII) 52.13%
3. Individual shareholders 13.66%
4. Domestic Institutional Investors
Mutual funds
Insurance companies (Including LIC)
30.6%
19.71%
8.74%
5. NPS (HDFC Pension Management Scheme E) 1.50
6. Central/State government 0.001%

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.[39]

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.[40]

HDFC Bank has pledged to become

carbon-neutral by 2032.[40]

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.[41][42]

On 29 January 2020, RBI imposed a monetary penalty on HDFC Bank for failure to undertake ongoing due diligence in case of 39 current accounts opened for bidding in the initial public offer.[43]

A HDFC Bank manager was arrested on charges of fraud, involving a sum of ₹5941,000 in Odisha.[44]

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.[45]

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 with regard to the contraventions of certain provisions of the Banking Regulation Act, 1949.[46]

In March 2023,

HDB Financial Services suffered a breach 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.[47]

Awards and recognition

2016

2018

2019

  • Best Bank: New Private Sector – FE Best Bank awards[54]
  • Winner in Innovation and Inclusiveness in Priority Sector Lending – 11th Inclusive Finance India Awards (IFI) 2019[55]
  • Ranked 1st in 2019 BrandZ Top 75 Most Valuable Indian Brands HDFC Bank was featured for the 6th consecutive year.[56]
  • Among The Most Honored Company List, Institutional Investor All-Asia (ex-Japan) Executive Team 2019 survey[57]
  • India's Best Bank, Euromoney Awards for Excellence 2019[58]
  • Bank of the Year and Best Large Bank, Business Today – Money Today Financial Awards 2019[59]
  • Best Bank in India 2019, by Global magazine FinanceAsia.[60]
  • Ranked 60th in 2019 BrandZ Top 100 Most Valuable Global Brands[61] 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[62]
  • India's leading private sector bank: Dun & Bradstreet BFSI Awards[citation needed]

2020

  • Best Bank in India: Euromoney Awards[63]
  • Best Bank in India: FinanceAsia Country Awards[citation needed]

2021

2022

  • Best Bank In India: Euromoney Awards for Excellence 2022[65]

See also

References

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  3. ^ a b c "HDFC Bank Consolidated Profit & Loss account, HDFC Bank Financial Statement & Accounts" (PDF).
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  32. ISSN 0013-0389
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Further reading

External links

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