HDFC Bank Limited (also known as HDB) is an Indian banking and financial services company headquartered in
Mumbai
Mumbai (, ; also known as Bombay — the official name until 1995) is the capital city of the Indian state of Maharashtra and the ''de facto'' financial centre of India. According to the United Nations, as of 2018, Mumbai is the secon ...
. It is India's largest private sector bank by assets and world's 10th largest bank by market capitalisation . It is the third largest company by market capitalisation of $122.50 billion on the Indian stock exchanges. It is also the
fifteenth largest employer in India with nearly 150,000 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
Worli ( ISO: ''Varaḷī'', əɾ(ə)ɭiː is a locality in South Mumbai, Maharashtra, India. It is one of the four peninsulas of Mumbai while the other being Colaba, Bandra and Malabar Hill. The sea connects it with Bandra
via the Ba ...
were inaugurated by the then
Union Finance Minister,
Manmohan Singh
Manmohan Singh (; born 26 September 1932) is an Indian politician, economist and statesman who served as the 13th prime minister of India from 2004 to 2014. He is also the third longest-serving prime minister after Jawaharlal Nehru and Indi ...
.
, the bank's distribution network was at 6,378 branches across 3,203 cities. It has installed 430,000
POS
POS, Pos or PoS may refer to:
Linguistics
* Part of speech, the role that a word or phrase plays in a sentence
* Poverty of the stimulus, a linguistic term used in language acquisition and development
* Sayula Popoluca (ISO 639-3), an indigenous l ...
terminals and issued 23,570,000 debit cards and 12 million credit cards in FY 2017.
It has a base of 1,52,511 permanent employees as of 30 June 2022.
Products and services
HDFC Bank provides a number of products and services including
wholesale banking
Wholesale banking is the provision of services by banks to larger customers or organizations such as mortgage brokers, large corporate clients, mid-sized companies, real estate developers and investors, international trade finance businesses, ...
,
retail banking, treasury, auto loans, two-wheeler loans,
personal loans, loans against property, consumer durable loan, lifestyle loan and
credit card
A credit card is a payment card issued to users (cardholders) to enable the cardholder to pay a merchant for goods and services based on the cardholder's accrued debt (i.e., promise to the card issuer to pay them for the amounts plus the o ...
s. 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
Bennett, Coleman and Company Limited, (abbreviated as B.C.C.L. and d/b/a The Times Group), is an Indian media conglomerate headquartered in Mumbai, Maharashtra. The company remains a family-owned business with Sahu Jain family owning a major ...
, 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 ₹95.1 billion 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
The Tata Group () is an Indian multinational conglomerate headquartered in Mumbai. Established in 1868, it is India's largest conglomerate, with products and services in over 150 countries, and operations in 100 countries across six continents ...
, to operate a Pan-India umbrella entity for retail payment systems, similar to
National Payments Corporation of India
The National Payments Corporation of India is an umbrella organization for operating retail payments and settlement systems in India, is an initiative of Reserve Bank of India (RBI) and Indian Banks’ Association (IBA) under the provisions of ...
.
In September 2021, the bank partnered with
Paytm to launch a range of credit cards powered by the global card network Visa.
On April 4, 2022, HDFC Bank announced merger with
HDFC Limited.
Investments
In March 2020,
Housing Development Finance Corporation, parent company of HDFC Bank, made an investment of ₹1,000 crores in
Yes Bank
Yes Bank is an Indian bank headquartered in Mumbai, India and was founded by Rana Kapoor and Ashok Kapoor in 2004.
It offers wide range of differentiated products for corporate and retail customers through retail banking and asset managemen ...
. 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
BSE Limited, also known as the Bombay Stock Exchange (BSE), is an Indian stock exchange. It is located on Dalal Street in Mumbai. Established in 1875 by cotton merchant Premchand Roychand, a Jain businessman, it is the oldest stock exchange i ...
and the
National Stock Exchange of India. Its
American depositary receipt
An American depositary receipt (ADR, and sometimes spelled ''depository'') is a negotiable security that represents securities of a foreign company and allows that company's shares to trade in the U.S. financial markets.
Shares of many non-U.S ...
s are listed on the
NYSE
The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is by far the world's largest stock exchange by market capitalization of its listed co ...
issued through
JP Morgan Chase Bank.
Its
global depository receipts (GDRs) was listed on the
Luxembourg Stock Exchange but was terminated by board of directors following its low trading
volume
Volume is a measure of occupied three-dimensional space. It is often quantified numerically using SI derived units (such as the cubic metre and litre) or by various imperial or US customary units (such as the gallon, quart, cubic inch). Th ...
.
Corporate social responsibility - Parivartan
Parivartan is an umbrella term for all of the
corporate social responsibility
Corporate social responsibility (CSR) is a form of international private business self-regulation which aims to contribute to societal goals of a philanthropic, activist, or charitable nature by engaging in or supporting volunteering or ethicall ...
initiatives by HDFC Bank.
HDFC Bank's Parivartan initiative spent ₹535 crore in FY 2019–20.
HDFC Bank spent Rs 634.91 crore towards Parivartan,in FY 2020-21. Out of Rs 634.9 crore, over Rs 110 crore was allocated and utilised towards initiatives focused on
COVID-19 relief.
HDFC Bank pledges to become carbon neutral by 2032
Controversies
On 2 December 2020, the
Reserve Bank of India
The Reserve Bank of India, chiefly known as RBI, is India's central bank and regulatory body responsible for regulation of the Indian banking system. It is under the ownership of Ministry of Finance, Government of India. It is responsible f ...
(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 Rs 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.
Financial
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
''FinanceAsia'' is a Hong Kong-based publication reporting on Asia’s financial and capital markets through a daily website and monthly magazine. At the end of 2005, ''FinanceAsia'' was acquired by Haymarket Group, the largest privately owned pub ...
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
The National Payments Corporation of India is an umbrella organization for operating retail payments and settlement systems in India, is an initiative of Reserve Bank of India (RBI) and Indian Banks’ Association (IBA) under the provisions of ...
- 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
The Dun & Bradstreet Corporation is an American company that provides commercial data, analytics, and insights for businesses. Headquartered in Jacksonville, Florida, the company offers a wide range of products and services for risk and financia ...
BFSI Awards
2020
*Best Bank in India: Euromoney Awards
*Best Bank in India: FinanceAsia Country Awards
2021
*Best bank in india:
FinanceAsia
''FinanceAsia'' is a Hong Kong-based publication reporting on Asia’s financial and capital markets through a daily website and monthly magazine. At the end of 2005, ''FinanceAsia'' was acquired by Haymarket Group, the largest privately owned pub ...
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
See also
*
HDFC Life
HDFC Life Insurance Company Ltd. (d/b/a HDFC Life) is a long-term life insurance provider with its headquarters in Mumbai, offering individual and group insurance services and incorporated on 14 August 2000.
The company is a joint venture bet ...
*
Aditya Puri
Aditya Puri is a senior advisor at The Carlyle Group. He was the managing director of HDFC Bank, India's largest private sector bank. He assumed this position in September 1994, with a vision to create a "World Class Indian Bank". Puri was the ...
*
Banking in India
Modern banking in India originated in the mid of 18th century. Among the first banks were the Bank of Hindustan, which was established in 1770 and liquidated in 1829–32; and the General Bank of India, established in 1786 but failed in 1791.
...
*
List of banks in India
*
List of companies of India
References
Further reading
*
*
External links
*
{{DEFAULTSORT:HDFC Bank
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