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HDFC Bank

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Not to be confused withHousing Development Finance Corporation.

HDFC Bank Limited
Company typePublic
ISININE040A01034
IndustryBanking
Financial services
FoundedAugust 1994(30 years ago)(August 1994)
Headquarters
Mumbai,Maharashtra
,
India
Number of locations
India:
8,851 Branches
20,938 ATMs
Area served
India
Key people
Products
RevenueIncrease₹407,994 crore(US$49 billion)[3](2024)
Increase₹76,568 crore(US$9.2 billion)[4](2024)
Increase₹64,062 crore(US$7.7 billion)[3](2024)
Total assetsIncrease₹36.17 lakh crore(US$430 billion)[5](2024)
Total equityIncrease₹4.53 lakh crore(US$54 billion)[5](2024)
Number of employees
213,527 (31 March 2024)[6]
ParentHousing Development Finance Corporation
SubsidiariesHDFC Life
HDFC ERGO
HDFC Securities[7]
HDFC AMC (HDFC Mutual Fund)
HDB Financial Services[8]
HDFC Capital Advisors
Websitewww.hdfcbank.comEdit this at Wikidata

HDFC Bank Limitedis an Indianbankingandfinancial servicescompany,headquartered inMumbai.It is India's largest private sector bank by assets and the world'stenth-largestbank bymarket capitalizationas of May 2024.[9][10]

TheReserve Bank of India(RBI) has identified the HDFC Bank,State Bank of India,andICICI BankasDomestic Systemically Important Banks(D-SIBs), which are often referred to as banks that are “too big to fail”.[11][12]

As of April 2024, HDFC Bank has a market capitalization of $145 billion making it the third-largest company on the Indian stock exchanges.[13]It is also thesixteenth largest employer in Indiawith over 173,000 employees, following itstakeoverof parent companyHousing Development Finance Corporation.[14][15]

History

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HDFC Bank was incorporated in 1994 as a subsidiary ofHDFC Ltd,which received an 'in principle' approval from the RBI to set up a bank in the Private Sector as part of itsliberalizationof the Indian banking industry.[16][17]The bank commenced operations in January 1995, with its registered office inMumbai.[18]Its first corporate office and a full-service branch at Sandoz House,Worli,was inaugurated by the thenUnion Finance Minister,Manmohan Singh.[citation needed]

In February 2000,Times Bankmerged with HDFC Bank, which was India's first-ever voluntary merger of banks.[19]Times Bank was established by India's largest media conglomerate,The Times Group.[20]

In July 2001, HDFC Bank'sADSlisted on theNew York Stock Exchangeafter an IPO.[21]

In 2008, HDFC Bank acquired theCenturion Bank of Punjab(CBoP) for₹9,510 crore(US$2.19 billion) in ashare-swapdeal, reportedly the largest acquisition in the Indian financial sector at the time.[22]

In 2021, the bank acquired a 9.99% stake in Ferbine, an entity promoted byTata Group,to operate a pan-India umbrella entity for retail payment systems, similar to theNational Payments Corporation of India.[23]

HDFC Ltd–HDFC Bank merger

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On 4 April 2022,HDFC Ltdannounced that it would merge with HDFC Bank, marking India's largest-everM&A deal.[24][25]As part of the merger, HDFC Ltd would transfer itshome loanportfolio to HDFC Bank, while the bank offered depositors of HDFC Ltd the choice of either withdrawing their money or renewing their deposits with the bank at theinterest ratethat the bank was then offering.[26]

On 1 July 2023, the merger of HDFC Ltd with HDFC Bank was completed.[27][28]Consequently, HDFC Bank had amarket capitalisationof $154 billion, becoming the seventh most valuable bank in the world. HDFC Bank also became one of theworld's top 100 banking companiesby total assets.[29][30]

The combined entity had a customer base of 120 million, surpassing the population of Germany in size.[31]The merger resulted in a substantial increase in bank headcount, with the workforce totaling 177,000 employees. The merged entity became the second-largest bank in India, trailing only theState Bank of Indiain terms of assets.[32]The number of branches increased to 8,300.[33]

Shares of HDFC Ltd were delisted and shareholders were allotted 42 shares of HDFC Bank for every 25 shares of HDFC Ltd held,[34]leading to an increase in the equity capital of HDFC Bank.[35]

Operations

[edit]
A branch of HDFC Bank inHyderabad

As of March 2024, HDFC Bank's distribution network included 8,735 branches and 20,938 ATMs (cash recyclers; cash deposit and withdrawal) spread throughout 3,836 cities and villages. 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.[36]

HDFC Bank is the sole private bank operating in the union territory ofLakshadweepafter opening a branch inKavarattiisland.[37]

Products and services

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HDFC Bank provides a number of products and services includingwholesale banking,retail banking,treasury, auto loans, two-wheeler loans,personal loans,loans against property, consumer durable loan, lifestyle loan andcredit cards.Along with this various digital products are PayZapp and SmartBUY.[38]Company also launched smart wealth app in 2024.[39]

Digital rupee

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Main article:Digital rupee

On August 29, 2024, HDFC Bank introduced User-Level Programmability on Digital rupee. It is now supported by the HDFC Bank Digital Rupee Wallet, allowing users to guarantee that payments are paid for specified purpose. Individual users can optionally design other characteristics using this capability, such as the validity period or the geographic regions in which Digital rupee can be utilized.[40]

Subsidiaries and associates

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Notable subsidiaries and associate companies of HDFC Bank include:

Name Type Ownership stake Ref
HDFC Life Life insurance 50.37% [41]
HDFC ERGO General insurance 50.48% [42]
HDFC Asset Management Company Mutual funds 52.55% [43]
HDFC Securities Stockbroking 95.48% [44]
HDB Financial Services Consumer finance 94.84% [45]
HDFC Capital Advisors Private equity real estate 90% [46]
HDFC Credila Education finance 9.99% [47]
An HDFC Bank branch located inDehradun

Listings and shareholding

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Theequity sharesof HDFC Bank are listed on theBombay Stock Exchangeand theNational Stock Exchange of India.ItsAmerican depositary receiptsare listed on theNYSE.[48]

Itsglobal depository receipts(GDRs) were listed on theLuxembourg Stock Exchangebut were terminated by the board of directors, following its low tradingvolume..[49][50]

Controversies

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On 2 December 2020, theReserve 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.[51][52]

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 theinitial public offer.[53]

A HDFC Bank manager was arrested on charges of fraud, involving a sum of ₹59,41,000 inOdisha.[54]

Altico Capital andDubai'sMashreq Bankhave 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.[55]

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 theBanking Regulation Act, 1949.[56]

In March 2023,HDB Financial Servicessuffered 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.[57]

Awards and recognition

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  • In 2023, HDFC Bank received the "Conscious Corporate of the Year" award at the Economic Times Awards.[58]
  • KPMGstudy of India's Best Banks, Bank of the year & bestdigital bankinginitiative award 2016[59]
  • BrandZ Rankings, Most Valued brand in India for third successive year[60]
  • FinanceAsiapoll on Asia's Best Companies 2015, Best managed public company – India[61]

See also

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References

[edit]
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  2. ^"Balance Sheet of HDFC Bank".moneycontrol.Archivedfrom the original on 4 April 2020.Retrieved7 January2016.
  3. ^ab"HDFC Bank Consolidated Profit & Loss account, HDFC Bank Financial Statement & Accounts"(PDF).
  4. ^"HDFC Bank Scores Strong Q4: Profits Up 37%, Dividend Declared".Bru Times News.
  5. ^ab"HDFC Bank Consolidated Balance Sheet, HDFC Bank Financial Statement & Accounts"(PDF).
  6. ^"HDFC Bank Annual Report"(PDF).HDFC BANK.Retrieved18 July2024.
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  8. ^"How HDB Financial Services Can Add To HDFC Bank's Long Rally".Moneycontrol.Archivedfrom the original on 26 April 2021.Retrieved26 April2021.
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  11. ^"RBI releases 2022 list of Domestic Systemically Important Banks (D-SIBs)".rbi.org.in.RBI. 2 January 2023.Retrieved6 December2023.State Bank of India, ICICI Bank, and HDFC Bank continue to be identified as Domestic Systemically Important Banks (D-SIBs), under the same bucketing structure as in the 2021 list of D-SIBs.
  12. ^"RBI releases Domestic Systemically Important Banks (D-SIBs) of 2022".Livemint.New Delhi. 2 January 2023.Retrieved6 December2023.
  13. ^"Largest bank by Market capitalization".MoneyControl.Archivedfrom the original on 6 June 2021.Retrieved1 October2014.
  14. ^"Financial Results (Indian GAAP) for the Quarter and Year Ended March 31, 2023"(PDF).hdfcbank.com.HDFC Bank. 31 March 2023. p. 4.Retrieved16 November2023.
  15. ^"HDFC Bank: Number of Employees 2006–2021 | HDB".macrotrends.net.Archivedfrom the original on 22 May 2021.Retrieved22 May2021.
  16. ^"About HDFC Bank".hdfcbank.com.HDFC Bank.Retrieved6 December2023.
  17. ^"HDFC Bank Ltd"(PDF).careratings.com.CARE Ratings. 2 May 2023.Retrieved6 December2023.The Housing Development Finance Corporation Limited (HDFC) was among the first institutions to receive an 'in principle' approval from RBI to set up a bank in the private sector, as part of the RBI's liberalization of the Indian banking industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited' (HBL), with its registered office in Mumbai, India.
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  23. ^"Kotak Mahindra Bank, HDFC Bank To Acquire 9.99% Each In Ferbine".Moneycontrol.26 February 2021.Archivedfrom the original on 14 April 2021.Retrieved4 March2021.
  24. ^"HDFC HDFC Bank Merger: HDFC to merge with HDFC Bank in India's biggest-ever M&A |".The Times of India.5 April 2022.
  25. ^Singh, Preeti; Patil, Divya (30 June 2023)."Bank Giant Bigger Than Morgan Stanley Arises From India Merger".Bloomberg.com.
  26. ^Kulkarni, Sneha (3 July 2023)."What is the HDFC Bank-HDFC merger date".The Economic Times.ISSN0013-0389.Retrieved4 July2023.
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  53. ^"RBI imposes penalty on HDFC bank".rbi.org.in.Archivedfrom the original on 30 January 2020.Retrieved29 January2020.
  54. ^"A HDFC bank manager arrested for Rs 59.41 lakh fraud in Odisha".The New Indian Express.Archivedfrom the original on 5 October 2019.Retrieved16 August2019.
  55. ^Das, Saikat."Altico and Mashreq approach RBI against HDFC Bank".The Economic Times.Archivedfrom the original on 12 October 2019.Retrieved13 October2019.
  56. ^"Reserve Bank of India imposes Rs 10 crore penalty on HDFC Bank".The indian express.Archivedfrom the original on 23 October 2021.Retrieved23 October2021.
  57. ^"HDB Financial Services flags data breach at service provider".The Economic Times.7 March 2023.ISSN0013-0389.Retrieved27 June2023.
  58. ^"Conscious Corporate of the Year Award Winner".The Economic Times.15 March 2024.Retrieved30 September2024.
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  61. ^"Asia's best managed companies, part 3".FinanceAsia.20 March 2015.Archivedfrom the original on 29 January 2016.Retrieved23 January2016.

Further reading

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[edit]
Wikimedia Commons has media related toHDFC Bank.
  • Official websiteEdit this at Wikidata
  • Business data for HDFC Bank:
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