"We understand your world"
|Traded as||BSE: 500180
BSE SENSEX Constituent
CNX Nifty Constituent
|Industry||Banking, Financial services|
|Headquarters||Mumbai, Maharashtra, India|
|Key people||Aditya Puri (MD)|
|Products||Credit cards, consumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, private equity, wealth management|
|Revenue||US$ 6.5 billion (2012)|
|Operating income||US$ 1.5 billion (2012)|
|Profit||US$ 978 million (2012)|
|Total assets||US$ 70.2 billion (2012)|
|Total equity||US$ 7.8 billion (2012)|
|Employees||69,065 (March 2013)|
HDFC Bank Limited is an Indian financial services company based in Mumbai, Maharashtra. It was incorporated in 1994. HDFC Bank is the fifth largest bank in India by assets and the largest bank by market capitalization as of 1 November 2012. The bank was promoted by the Housing Development Finance Corporation, a premier housing finance company (set up in 1977) of India.
As of 31 March 2013, the bank had assets of INR 4.08 trillion. For the fiscal year 2012-13, the bank has reported net profit of INR 69 billion, up 31% from the previous fiscal year. Its customer base stood at 28.7 million customers on 31 March 2013.
HDFC Bank Limited was incorporated in August 1994. It was promoted by Housing Development Finance Corporation Limited (HDFC), India's largest housing finance company. It was among the first companies to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. The Bank started operations as a scheduled commercial bank in January 1995 under the RBI's liberalisation policies.
On 26 February 2000, Times Bank Limited owned by The Times Group (Bennett, Coleman & Co.) was merged with HDFC Bank Ltd. This was the first merger of two private banks in India. Shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank.
On 23 May 2008, HDFC Bank acquired Centurion Bank of Punjab taking its total branches to more than 1,000. The amalgamated bank emerged with a base of about Rs. 1,22,000 crore and net advances of about Rs. 89,000 crore. The balance sheet size of the combined entity is more than Rs. 1,63,000 crore.
Wholesale banking services
HDFC Bank provides a range of commercial and transactional banking services, including working capital finance, trade services, transactional services, cash management, etc to large, small and mid-sized corporates and agriculture-based businesses in India. The bank is also a leading provider of these services to its corporate customers, mutual funds, stock exchange members and banks.
Retail banking services
HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (Visa Electron) and issues the MasterCard Maestro debit card as well. The Bank launched its credit card business in late 2001. By the end of June 2013, it had a credit card base of 5.94 million. By March 2012, the bank had a total card base (debit and credit cards) of over 19.7 million. The Bank is also one of the leading players in the "merchant acquiring" business with over 240,000 point-of-sale (POS) terminals for debit / credit cards acceptance at merchant establishments. The Bank is positioned in various net based B2C opportunities including a wide range of Internet banking services for Fixed Deposits, Loans, Bill Payments, etc.
Within this business, the bank has three main product areas - Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. These services are provided through the bank's Treasury team. To comply with statutory reserve requirements, the bank is required to hold 25% of its deposits in government securities. The Treasury business is responsible for managing the returns and market risk on this investment portfolio.
As on 30 September 2013, HDFC Bank had 3,251 branches and 11,177 ATMs, in 2,022 cities in India, and all branches of the bank are linked on an online real-time basis. The Bank has overseas branch operations in Bahrain and Hong Kong.
HDFC Bank has two subsidiaries:
HDB Financial Services Limited (‘HDBFS’): HDBFS is engaged in retail asset financing. It is a non-deposit taking non-bank finance company (NBFC). Apart from lending to individuals, the company grants loans to micro, small and medium business enterprises. It also runs call centers for collection services to the HDFC Bank’s retail loan products. HDFC Bank holds 97.4% shares in HDBFS. As on March 31, 2013, HDBFS had 230 branches in 184 cities. During the FY 2013-13, HDBFS had turnover of INR 9.6 billion and profit after tax of INR 1 billion. It had 6,404 employees as on 31 March 2013.
HDFC Securities Limited (‘HSL’): HSL is engaged in stock broking. As on March 31, 2013, HDBFS had 194 branches across 150 cities. HDFC Bank has 62.1% shareholding in HSL. During the FY 2013-13, HSL had turnover of INR 2.3 billion and profit after tax of INR 668 million. During the year, the Company received the “Best e-Brokerage Award - 2012” in the Outlook Money Awards in the runner up category.
The equity shares of HDFC Bank are listed on the Bombay Stock Exchange, where it is a constituent of the BSE SENSEX index, and the National Stock Exchange of India, where it is a constituent of the CNX Nifty. Its American Depositary Shares are listed on the NYSE. Its Global Depository Receipts (GDRs) are listed on the Luxembourg Stock Exchange where 2 GDRs represent one underlying equity share of HDFC Bank.
Shareholding: On 30 September 2013, the promotor group Housing Development Finance Corporation held 22.72% of its equity shares. 33.61% of the shares were owned by the Foreign Institutional Investors (FII). Around 428,000 individual public shareholders own approx. 8.43% of its shares. The remaining 35.24% shares are owned by others.
|Shareholders (as on 30-September-2013)||Shareholding|
|Promoter Group (HDFC)||22.72%|
|Foreign Institutional Investors (FII)||33.61%|
As on 31 March 2013, the company had 69,065 employees, out of which 12,295 were women (17.80%). In June 2013, the company reported an annual attrition rate of approx. 20%. During the financial year 2012-13, the company incurred INR 42 billion on employee benefit expenses.
Awards and recognitions
- HDFC Bank was included in the Forbes Asia's Fab 50 list for 2013. It was the 7th time that it was included in this list.
- In 2012, It received the Best Domestic Bank in India award from Asiamoney.
- In 2011, it won 7 awards in the IBA Bankiing Technology Awards.
- HDFC Bank was awarded the Gold Shield for the second year in a row for Excellence in Financial Reporting in 2011 under the Private Banks (including Co-operative banks) category.
Money laundering allegations
On 14 March 2013 an online magazine named Cobrapost.com released video footage from Operation Red Spider showing high-ranking officials and some employees of HDFC bank willing to turn black money into white which is violation of Money Laundering Control Act. Following this, the Government of India and RBI have ordered an inquiry. The inquiry confirmed violation of KYC (Know Your Customer) norms by HDFC Bank. A penalty of INR 45 million was imposed on the bank by RBI.
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- "2013 Asia's Fab 50". Forbes. 2 September 2013. Retrieved 29 November 2013.
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- "Asiamoney - Best Domestic Bank and Best Executive Awards –India". HDFC Bank. 15 September 2013. Retrieved 29 November 2013.
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- "UTI Mutual Fund CNBC TV18 Financial Advisory Awards 2011 Best Performing Bank - Private". HDFC Bank. Retrieved 29 November 2013.
- "ICAI Awards for Excellence in Financial Reporting FY11". HDFC Bank. Retrieved 29 November 2013.
- "ICAI Awards for Excellence in Financial Reporting". Press Information Bureau, Government of India. 5 January 2011. Retrieved 29 November 2013.
- "Money laundering case: ICICI bank suspends 18 employees". Zee News. 15 March 2013. Retrieved 30 November 2013.
- "Probes Begin as Top Indian Banks Are Embroiled in Sting Operation". Wharton School of the University of Pennsylvania. Retrieved 30 November 2013.
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- "RBI penalises banks after sting expose". DNA India. 10 June 2013. Retrieved 30 November 2013.
- Official website
- HDFC Bank IFSC Codes
- Jobs at HDFC Bank
- HDFC Bank on Facebook
- HDFC Bank at Times of India
- HDFC Bank at Bombay Stock Exchange
- HDFC Bank at National Stock Exchange of India
- Business data
- HDFC Bank at Google Finance
- HDFC Bank at Yahoo! Finance
- HDFC Bank at Reuters
- HDFC Bank SEC filings at the Securities and Exchange Commission