HDFC Bank Limited – Company of the Month – January 2021

Company name: HDFC Bank Limited

Founder: Hasmukhbhai Parekh

Year: 1994

Total Assets: US$220 billion

Revenue: US$21 billion

Net Income: US$3.8 billion

Country:  India

Headquarter: Mumbai, Maharashtra, India

Industry: Financial Service

Webpage: https://www.hdfcbank.com/

Number of employees: 1,16,971

HDFC Bank Limited (the Bank), incorporated on August 30, 1994, is a holding corporation. The Bank gives several banking offerings overlaying business and investment banking at the wholesale facet and transactional/branch banking at the retail facet. It additionally gives financial services. The Bank’s segments encompass Treasury, Retail Banking, Wholesale Banking, and other banking business.

The Treasury section primarily consists of net interest from the Bank’s funding portfolio, money market borrowing, and lending, profits or losses on funding operations, and as a result of buying and selling in forex and spinoff contracts. The Treasury section is accountable for compliance with reserve requirements, and control of liquidity and interest rate threat at the Bank’s stability sheet. The Bank gives Indian rupee and forex spinoff merchandise to its clients. The Bank is likewise a number one provider for Government securities. As a part of this commercial enterprise, in addition to otherwise, the Bank holds constant profits securities in the Held for Trading (HFT) category.

The Retail Banking section serves retail clients via a department community and different shipping channels, in addition to via opportunity shipping channels, together with computerized teller machines (ATMs), phone banking, internet banking, and mobile banking. The Retail Banking section presents clients with several economic products and banking offerings. It gives HDFC Bank Plus and Investment Advisory Services packages for clients looking for economic solutions, statistics, and recommendations on numerous funding avenues.

The Bank additionally has an array of retail mortgage products, along with auto loans, loans towards marketable securities, private loans, and loans for two-wheelers. It is likewise an issuer of Depository Participant (DP) offerings for retail clients, imparting clients the power to keep their investments in digital form. This section increases deposits from clients and presents loans and different offerings to clients with the assist of specialist product corporations. Exposures are categorized below retail banking contemplating the reputation of the borrower (orientation criterion), the character of the product, the granularity of the publicity, and the quantum thereof.

The Bank provides its company and institutional customers with several business and transactional banking products. The Wholesale Banking commercial enterprise has several commercial enterprise corporations catering to numerous segments with several banking offerings overlaying their running capital, term finance, alternate offerings, money control, funding banking offerings, forex, and digital banking requirements. It presents its clients’ get right of entry to each Working Capital and Term Financing.

The Bank’s Financial Institutions and Government Business Group (FIG) gives business and transaction banking products to economic establishments, mutual funds, coverage companies, public region undertakings, significant and nation authorities departments. The wholesale banking section presents loans, non-fund centers, and transaction offerings to corporate, emerging corporate, public region units, government bodies, economic establishments, and medium scale enterprises.

The Other banking business section consists of profits from para banking activities, together with credit cards, debit cards, third-party product distribution, number one dealership commercial enterprise, and the related costs. This section additionally consists of the Bank’s subsidiaries, which encompass HDFC Securities Limited (HSL) and HDB Financial Services Limited (HDBFS). HSL is a retail dealer firm, which gives economic offerings. HDBFS is a non-deposit taking non-financial institution Finance Corporation.

The promoter of the corporation HDFC changed into incepted in 1977 is India’s most excellent housing finance corporation and enjoys an impeccable track record in India in addition to in global markets. HDFC has advanced good sized information in retail loans to distinct marketplace segments and additionally has a huge company consumer base for its housing associated credit centers. With its enjoy in the economic markets, a sturdy marketplace reputation, huge shareholder base, and particular client franchise, HDFC changed into preferably placed to sell a financial institution in the Indian environment.

The stocks are indexed at the Bombay Stock Exchange Limited and the National Stock Exchange of India Limited. The Bank’s American Depository Shares ( ADS ) are indexed at the New York Stock Exchange (NYSE) below the symbol ‘HDB’ and the Bank’s Global Depository Receipts (GDRs) are indexed on Luxembourg Stock Exchange.

On May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC Bank changed into officially accepted by the Reserve Bank of India to finish the statutory and regulatory approval process. As in step with the scheme of amalgamation, shareholders of CBoP acquired 1 proportion of HDFC Bank for every 29 stocks of CBoP.

The merged entity now holds a sturdy deposit base of around Rs. 1,22,000 crore and internet advances of around Rs. 89,000 crore. The stability sheet length of the blended entity might be over Rs. 1,63,000 crore. The amalgamation delivered good-sized price to HDFC Bank in phrases of improved department community, geographic reach, and patron base, and a larger pool of professional manpower.

In a milestone transaction in the Indian banking industry, Times Bank Limited (any other new personal region financial institution promoted by Bennett, Coleman & Co. / Times Group) changed into merged with HDFC Bank Ltd., powerful February 26, 2000. This changed into the primary merger of personal banks in the New Generation Private Sector Banks.