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HDFC Bank Limited

Company type	Public
Traded as	NSE: HDFCBANK BSE: 500180 NYSE: HDB (ADS) BSE SENSEX constituent NSE NIFTY 50 constituent
ISIN	INE040A01034
Industry	Banking Financial services
Founded	August 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	Atanu Chakraborty (Chairman) Sashidhar Jagdishan (CEO)
Products	Consumer banking Commercial banking Insurance Credit cards Investment banking Mortgage loans Private banking Private equity Investment management Asset management Mutual funds Exchange-traded funds Index funds Wealth management Stockbroking Risk management
Revenue	₹407,994 crore (US$49 billion) (2024)
Operating income	₹76,568 crore (US$9.2 billion) (2024)
Net income	₹64,062 crore (US$7.7 billion) (2024)
Total assets	₹36.17 lakh crore (US$430 billion) (2024)
Total equity	₹4.53 lakh crore (US$54 billion) (2024)
Number of employees	213,527 (31 March 2024)
Subsidiaries	HDFC Life HDFC ERGO HDFC Securities HDFC AMC (HDFC Mutual Fund) HDB Financial Services HDFC Capital Advisors
Website	www.hdfcbank.com

HDFC Bank Limited is an Indian banking and financial services company, headquartered in Mumbai. It is India's largest private sector bank by assets and the world's tenth-largest bank by market capitalization as of May 2024

The Reserve Bank of India (RBI) has identified the HDFC Bank, State Bank of India, and ICICI Bank as Domestic Systemically Important Banks (D-SIBs), which are often referred to as banks that are “too big to fail”.

As of April 2024, HDFC Bank has a market capitalization of $145 billion making it the third-largest company on the Indian stock exchanges. It is also the sixteenth largest employer in India with over 173,000 employees, following its takeover of parent company Housing Development Finance Corporation.

History

HDFC Bank was incorporated in 1994 as a subsidiary of HDFC Ltd, which received an 'in principle' approval from the RBI to set up a bank in the Private Sector as part of its liberalization of the Indian banking industry. The bank commenced operations in January 1995, with its registered office in Mumbai. Its first corporate office and a full-service branch at Sandoz House, Worli, was inaugurated by the then Union Finance Minister, Manmohan Singh.

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

In July 2001, HDFC Bank's ADS listed on the New York Stock Exchange after an IPO.

In 2008, HDFC Bank acquired the Centurion Bank of Punjab (CBoP) for ₹9,510 crore (US$2.19 billion) in a share-swap deal, reportedly the largest acquisition in the Indian financial sector at the time.

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.

HDFC Ltd–HDFC Bank merger

On 4 April 2022, HDFC Ltd announced that it would merge with HDFC Bank, marking India's largest-ever M&A deal. As part of the merger, HDFC Ltd would transfer its home loan portfolio 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 the interest rate that the bank was then offering.

On 1 July 2023, the merger of HDFC Ltd with HDFC Bank was completed. Consequently, HDFC Bank had a market capitalisation of $154 billion, becoming the seventh most valuable bank in the world. HDFC Bank also became one of the world's top 100 banking companies by total assets.

The combined entity had a customer base of 120 million, surpassing the population of Germany in size. 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 the State Bank of India in terms of assets. The number of branches increased to 8,300.

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

Operations

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.

HDFC Bank is the sole private bank operating in the union territory of Lakshadweep after opening a branch in Kavaratti island.

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. Company also launched smart wealth app in 2024.

Digital rupee

On 29 August 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.

Subsidiaries and associates

Notable subsidiaries and associate companies of HDFC Bank include:

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.

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..

Suspension of Partnership with Apple

In 2024, HDFC Bank temporarily suspended its partnership with Apple, which had been in place since 2019. Parag Rao, the Group Head of Payments at HDFC Bank, stated that the bank regularly reviews its partnerships and that the decision to pause the collaboration was based on the cost-to-income ratio, which no longer aligned with the bank's strategic objectives. Rao referred to the move as a "temporary break."

The partnership had made HDFC Bank the exclusive banking partner for Apple's promotional offers in India, providing HDFC customers with special benefits when purchasing Apple products. However, after the suspension, Apple was reported to have partnered with American Express, Axis Bank, and ICICI Bank to offer similar promotional benefits to its customers in India.

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 ongoing 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 ₹59,41,000 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 ₹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 the Banking Regulation Act, 1949.

In March 2023, HDB Financial Services suffered 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.

Awards and recognition

• In 2023, HDFC Bank received the "Conscious Corporate of the Year" award at the Economic Times Awards.
• 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

See also

• HDFC Life
• Aditya Puri
• Banking in India
• List of banks in India
• List of companies of India

References

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Further reading

• Bandyopadhyay, Tamal (2013). A Bank for the Buck. Jaico Publishing House. p. 344. ISBN 978-81-8495-396-1.
• Bandyopadhyay, Tamal (2019). HDFC Bank 2.0: From Dawn to Digital. Jaico Publishing House. ISBN 978-93-88423-35-9.

External links

• Official website
• Business data for HDFC Bank:
  • SEC filings

v t e HDFC Bank
HDFC Group
Subsidiaries and divisions	HDFC Bank Housing Development Finance Corporation HDFC ERGO General Insurance Company HDFC Life HDFC securities HDFC International Life and Re HDFC AMC HDB Financial Services
Investments	Ferbine (10%) Yes Bank (7.97%) Bandhan Bank (from GRUH divestment) (14.9%)
People	Deepak Parekh Keki Mistry Shyamala Gopinath Aditya Puri Hasmukhbhai Parekh Sashidhar Jagdishan
Category

v t e NIFTY 200 companies

NIFTY 200

NIFTY 100 NIFTY 50 Adani Enterprises Adani Ports Apollo Hospitals Asian Paints Axis Bank Bajaj Auto Bajaj Finance Bajaj Finserv BEL Bharat Petroleum Bharti Airtel Britannia Cipla Coal India Dr. Reddy's Labs Eicher Grasim HCLTech HDFC Bank HDFC Life Hero MotoCorp Hindalco HUL ICICI Bank IndusInd Bank Infosys ITC JSW Steel Kotak Mahindra L&T M&M Maruti Suzuki NTPC Nestlé ONGC Power Grid Reliance SBI Life SBI Shriram Finance Sun Pharma Tata Consultancy Services Tata Consumer Products Tata Motors Tata Steel Tech Mahindra Titan Trent UltraTech Wipro NIFTY Next 50 ABB India Adani Energy Solutions Adani Green Energy Adani Power Ambuja Cements Bank of Baroda BHEL Bosch Canara Bank Cholamandalam Dabur Divi's Labs DLF DMart GAIL Godrej Consumer Products Havells HAL ICICI Lombard ICICI Prudential Indian Oil IndiGo Info Edge IRCTC IRFC Jindal Steel Jio Financial Services JSW Energy LIC Lodha LTIMindtree NHPC Pidilite Power Finance PNB REC Samvardhana Motherson Shree Cement Siemens India Tata Power Torrent Pharma TVS Motors Union Bank United Spirits Varun Beverages Vedanta Zomato Zydus Lifesciences ACC Aditya Birla Fashion Alkem Labs Apollo Tyres Ashok Leyland Astral AU SFB Aurobindo Pharma Balkrishna Industries Bandhan Bank Bank of India Bank of Maharashtra Bharat Dynamics Bharat Forge Biocon BSE CBI Cochin Shipyard Coforge Container Corp CG Power Cummins India Delhivery Dixon Technologies Escorts Exide FACT Federal Bank GMR Airports Godrej Properties Hindustan Petroleum Hindustan Zinc HUDCO IDBI Bank IDFC First Bank Indian Bank Indian Hotels IOB Indraprastha Gas Indus Towers IRB Infrastructure IREDA Jubilant FoodWorks Kalyan Jewellers KPIT Technologies LIC Housing Finance Lupin M&M Finance Mankind Pharma Marico Max Financial Services Max Healthcare Mazagon Dock Shipbuilders Mphasis MRF MRPL Muthoot Finance NLC India NMDC Nykaa Oil India Oracle FSS Page Industries Patanjali Foods Paytm Persistent Systems Petronet LNG Policybazaar Polycab Poonawalla Fincorp Prestige Estates RVNL SAIL SBI Card SJVN SRF Sundaram Finance Supreme Industries Suzlon Tata Chemicals Tata Communications Tata Technologies Torrent Power Tube Investments UPL Voltas Yes Bank

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