HDFC Bank

HDFC Bank Limited (also known as HDB) is an Indian banking and financial services company headquartered in Mumbai. It is India's largest private sector bank by assets and world's fifth largest bank by market capitalisation , following its takeover of parent company HDFC. It is the third largest company(as of 6th September 2023) by market capitalisation of $150 billion on the Indian stock exchanges. It is also the sixteenth largest employer in India with nearly 1.73 lakh employees.
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.
, the bank's distribution network was at 8,344 branches and 19,727 ATMs across 3,811 cities.It has installed 4,30,000 POS terminals and issued 2.35 crore (23.5 million) debit cards and 1.2 crore (12 million) credit cards in FY 2017. It has a base of 1,77,000 permanent employees as of 1 June 2023.
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.
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. Times Bank was established by Bennett, Coleman and Co. Ltd., commonly known as The Times Group, India's largest media conglomerate.
In 2008, Centurion Bank of Punjab (CBoP) was acquired by HDFC Bank. HDFC Bank's board approved the acquisition of CBoP for ₹9,510 crore in one of the largest mergers in the financial sector in India.
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.
In September 2021, the bank partnered with Paytm to launch a range of credit cards powered by Visa.
On April 4, 2022, HDFC Bank announced a merger with the Housing Development Finance Corporation. Upon the completion of the merger, HDFC became the fourth-largest bank in the world by market capitalization. The effective date of the merger was set to be July 1, 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.
Investments
In March 2020, Housing Development Finance Corporation, parent company of HDFC Bank, made an investment of ₹1,000 crore in Yes Bank. 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.
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.
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.
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.
HDFC Bank spent ₹634.91 crore towards Parivartan,in FY 2020-21. Out of ₹634.9 crore, over ₹110 crore was allocated and utilised towards initiatives focused on COVID-19 relief.
HDFC Bank has pledged to become carbon neutral by 2032.
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.
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.
A HDFC bank manager was arrested on charges of fraud, involving a sum of ₹59.41 lakh, in Odisha.
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.
On 27 May 2021, RBI imposed a penalty of ₹10 crore 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.
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.
Awards and recognition
2016
Best Banking Performer, India in 2016 by Global Brands Magazine Award.
Best Performing Branch in Microfinance among private sector banks by NABARD, 2016, Award for Best Performance in Microfinance
KPMG study of India's Best Banks, Bank of the year & best digital banking initiative award 2016
BrandZ Rankings, Most Valued brand in India for third successive year
FinanceAsia poll on Asia's Best Companies 2015, Best managed public company – India
J. P. Morgan Quality Recognition Award, Best in class straight-through processing rates
2018
Company of the year: The Economic Times Corporate Excellence Awards
Best Performing Private Bank in Total Aadhaar Generation & Update: Aadhaar Excellence Awards
NPCI - National Payments Excellence Awards
2019
Best Bank: New Private Sector – FE Best Bank awards
Winner in Innovation and Inclusiveness in Priority Sector Lending – 11th Inclusive Finance India Awards (IFI) 2019
Ranked 1st in 2019 BrandZ Top 75 Most Valuable Indian Brands HDFC Bank was featured for the 6th consecutive year.
Among The Most Honored Company List, Institutional Investor All-Asia (ex-Japan) Executive Team 2019 survey
India’s Best Bank, Euromoney Awards for Excellence 2019
Bank of the Year and Best Large Bank, Business Today – Money Today Financial Awards 2019
Best Bank in India 2019, by Global magazine FinanceAsia.
Ranked 60th in 2019 BrandZ Top 100 Most Valuable Global Brands 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
India's leading private sector bank: Dun & Bradstreet BFSI Awards
2020
Best Bank in India: Euromoney Awards
Best Bank in India: FinanceAsia Country Awards
2021
Best bank in india: FinanceAsia Country Awards
Best bank for SMEs: Asiamoney best bank awards
Best bank in india:The Euromoney Awards for Excellence
Ranks No. 1 in Mass Affluent category:Euromoney Private Banking and Wealth Management Survey
On 12 January 2022 HDFC BANK has been adjudged ' Best Private Bank in India' at the Global Private Banking Awards 2021, Organised by Professional Wealth Management (PWM)
2022
Best Bank In India: Euromoney Awards for Excellence 2022
Gallery
See also
HDFC Life
Aditya Puri
Banking in India
List of banks in India
List of companies of India
References
Further reading
External links
Companies listed on the New York Stock Exchange
BSE SENSEX
NIFTY 50
Financial services companies based in Mumbai
Banks established in 1994
Indian brands
HDFC Group
Private sector banks in India
1994 establishments in Maharashtra
Banks based in Mumbai
Companies listed on the National Stock Exchange of India
Companies listed on the Bombay Stock Exchange