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About HDFC Bank

HDFC Bank is one of India’s leading private banking institutes, headquartered in Mumbai. It was among the first banks to receive an ‘in-principle’ approval from the RBI to set up a private sector bank in 1994, as part of the Reserve Bank Of India’s liberalisation policy for the industry. Incorporated in August 1994, the bank began its operations as a Scheduled Commercial Bank from January 1995. As of June 30, 2022, HDFC has a nationwide network of 6,378 branches and 18,620 ATM's in 3,203 cities/towns.  HDFC launched its first IPO in 1995 of Rs. 500 million, despite much scepticism among the people. However, they were oversubscribed by 55 times, and within 2 months of the issue, its shares were quoted at a 300% premium.  In 1999, HDFC underwent its first friendly merger, with Times Bank, through a share swap deal. Within the first five years of the new century, HDFC had not only become the first private bank to be certified to collect Income Tax, but also introduced SMS banking and credit cards, touching 1 million users across 100 cities in India. 

Core Activities & Products

Since its start in 1994, the bank has come a long way when it comes to the products and services that it offers. 
  1. Wholesale Banking: HDFC’s primary market is essentially large, blue-chip manufacturing companies present in the Indian Corporate Sector, and to some extent, small and mid-sized corporate companies as well as agriculture-based businesses. For them, HDFC provides a vast range of commercial and transactional banking services, such as working capital finance, trade services, transactional services, cash management, and more. It is also the leading provider of structured solutions, which bring together cash management services with vendor and distributor finance to better enable a superior supply chain management for its customers. Based on this superior product and service levels and strong customer orientation, HDFC has made significant progress into obtaining a number of leading Indian corporates, which include but are not limited to multinationals, companies from the domestic business houses and prime public sector companies.
  2. Treasury: As part of its treasury services, the bank has three main product areas of focus - Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the liberalisation policy of the financial markets in India coming into effect in 1995, corporates needed more sophisticated risk management information, advice and product structures. These and fine pricing on different treasury products are provided through HDFC’s Treasury team. To comply with all statutory reserve requirements, the bank is required to hold 25% of its entire deposits in government securities. The Treasury business is also responsible for managing the returns and market risk on this investment portfolio. Additionally, the Treasury team is the custodian of the Bank’s liquid assets and manages its investments in securities and other market instruments.
  3. Retail Banking: Through its retail banking services, HDFC provides its customers a complete range of financial instruments and banking services, making it their one-stop-shop for all things financial. Their products are backed by world-class service and delivered to customers through a growing branch network, as well as through alternative delivery channels like ATMs, Phone Banking, NetBanking and Mobile Banking. The first bank in India to launch an International Debit Card in association with Visa Electron, HDFC is a leading player in the 'merchant acquiring' business, showcasing over 235,000 Point-of-sale (POS) terminals for debit & credit cards acceptance at merchant establishments.

Board of Directors

  1. Mr. Atanu Chakraborty, Chairman
  2. Mrs. Renu Karnad, Non-Executive Director
  3. Dr. Sunita Maheshwari, Independent Director
  4. Mr. Sashidhar Jagdishan, Managing Director & Chief Executive Officer
  5. Mr. Malay Patel, Independent Director
  6. Mr. Sandeep Parekh, Independent Director
  7. Mr. MD Ranganath, Independent Director
  8. Mrs. Lily Vadera, Independent Director

Key Executives

  1. Mr. Sashidhar Jagdishan, Managing Director & Chief Executive Officer
  2. Mr. Kaizad M Bharucha, Executive Director
  3. Mr. Arvind Kapil, Group Head - Retail Assets
  4. Mr. Arvind Vohra, Group Head – Retail Branch Banking
  5. Ms. Ashima Bhat, Group Head – Business Finance and Strategy, CSR and ESG, Administration, and Infrastructure
  6. Mr. Ashish Parthasarthy, Treasury
  7. Mr. Bhavesh Zaveri, Group Head – Operations & ATM Product
  8. Mr. V Chakrapani, Group Head - Internal Audit and Quality Initiatives Group
  9. Mr. Jimmy Tata, CCO
  10. Nirav Shah, Group Head – Corporate Banking
  11. Mr. Parag Rao, Group Head – Payments, Consumer Finance, and Digital Banking
  12. Rakesh K. Singh, Group Head - Investment Banking, Private Banking, Marketing and Products
  13. ​​​​​​​Rahul Shukla, Group Head – Commercial and Rural Banking
  14. Vinay Razdan, Chief Human Resources Officer (CHRO)
  15. Mr. Benjamin Frank, Group Head – Wholesale Credit
  16. Mr. S Sampathkumar, Group Head - Liability Products, Third Party Products, and Non-Resident Business
  17. Mr. Srinivasan Vaidyanathan, Chief Financial Officer
  18. Ms. Smita Bhagat, Group Head - Government and Institutional Business, BC Banking (CSC partnership), Ecosystem Banking, Inclusive Banking Group, and Start-ups
  19. Arup Rakshit, Group Head - Treasury - Sales, Analytics & Overseas
  20. Raveesh K. Bhatia, Group Head – Emerging Corporates Group and PSU coverage
  21. Mr Ramesh Lakshminarayanan, Group Head - Information Technology
  22. Mr. Anjani Rathor, Group Head - Digital Banking
  23. Mr Sanmoy Chakrabarti, Chief Risk Officer


 With branches widespread all over the country as well as heavy presence in Bahrain and some presence in Hong Kong as well as offices in UAE and Kenya.

Registered and Corporate Office:

Ramon  House, 169, Backbay reclamation, H T Parekh Marg, Churchgate,Mumbai  - 400020


The strengths of the company that have affected the HDFC Bank share price are: 
  1. Large Network of Branches: With over 2,201 branches and 7,110 ATMs around the country, HDFC Bank is India’s second-largest private banking sector.
  2. Strong Consumer Banking: The ATM card issued by HDFC is compatible with almost all domestic and international Visa/Master cards, Visa Electron/Maestro, and American Express cards. This is one of the biggest reasons why HDFC cards are the most popular choice for shopping and online transactions.
  3. Higher Customer Satisfaction: When compared to other private banks, HDFC offers a much higher level of customer satisfaction.
  4. High Employee Retention Rate: HDFC has a low employee turnover rate and is considered as one of the best places to work in the private banking sector.
  5. Brand’s Goodwill: HDFC has received recognition for its work, products, and services numerous times, including the title of “Best Bank” from various financial rating institutions such as Dun and Bradstreet, Financial Express, Finance Asia Country Awards and Euromoney Awards for Excellence.

CSR and Sustainability

HDFC Bank aims to transform the lives of millions of Indians through its social initiatives. The initiatives come under the larger umbrella of ‘Parivartan’ that contributes to the economic and social development of the country by empowering its communities in a sustainable way.  ZIIEI (Zero Investment Innovation for Education Initiative) by HDFC is an action-oriented initiative that aims to improve the education system of India at zero or minimal cost. With HDFC Bank Parivartan as its main sponsor, ZIIEI is the world’s largest people-driven grassroots innovation movement. Rupantar, a multi-dimensional programme under the same initiative offers a platform for the government, corporates, NGOs and teachers to come together to improve the quality of education in government schools. The main areas of development undertaken by HDFC are: 
  1. Rural Development
  2. Skill Development and Livelihood Enhancement
  3. Promotion of Education
  4. Healthcare & Hygiene
  5. Financial Literacy & Inclusion


HDFC has received criticism for the following reasons: 
  1. They do not have a rural presence at all, whereas their competitors - ICICI Bank are expanding in the rural section of society.
  2. Their marketing strategies are not very aggressive, unlike ICICI, which leads to them having a limited market size which means a lot of their banking products are not performing and have already reached the market limit.
  3. The HDFC bank stock price is fluctuating frequently which is not great for building trust with their investors.

COVID 19 Impact

  The outbreak of the COVID 19 pandemic which led to the subsequent lockdown in the Indian subcontinent had a negative impact on the company’s loan book. The bank witnessed a double digit increase in the NPAs in both retail as well as wholesale loans. The liquidity was impacted of the overall Indian banking system as the deposits as well as interbank funds reduced.

Future Prospects

The future prospects on the front of investments, management discussions and con calls are: 
  1. The replacement of Aditya Puri.
  2. The additional provisions made by the bank of Rs. 7 billion toward certain corporate accounts that have a large probability of default. Most products are showing increase in profits but the Commercial Vehicle and Construction Equipment (CE) portfolio are cause for high concerns.
  3. Their loans to salaried customers is seeing improved growth and the credit card business is also witnessing better trends due to their corporate tie ups.
  4. The branch expansion of the bank for smaller ones for semi-urban and rural reasons is good for growth as they focus on digital banking in the urban areas.
  Overall, the Indian banking sector is set to face increasing loan defaults as well as a liquidity crunch due to the COVID 19 aftermath, but the recovery has been guessed to be speedy as it majorly depends on the Government stimulus and liquidity infused by RBI into the economy of the country. However, HDFC in particular, has solid fundamentals as well as sufficient provisions to withstand the setbacks.

Did You Know!

Interestingly, the first corporate borrower from HDFC Bank was Siemens, while the first individual borrower was D. B. Remedios from Thane. Another interesting fact is that the bank persuaded the CBDT for the permission to collect tax through offering to deposit the collected tax with the authority within 4 days as compared to the 2 weeks offered by PSU banks. Now, it is the second largest tax collector after SBI.  Unexpectedly, the bank is also known for having turned down Nandan Nilekani, then head of market and sales in Infosys for buying the company’s software - Bancs 2000 in favour of CITIL’s Microbanker software.  HDFC was headed by Deepak Parekh, who wanted to call it Bank of Bombay as it was one of the 10 new banks to launch after the 1991 reforms and have headquarters in Mumbai. However, he was forced to take the name of the parent brand as the same had been done by its main competitors in the market - ICICI, IDBI and UTI.

Initial Public Offering

HDFC Bank went public in 1995, releasing a Rs 50-crore initial public offer (5 crore equity shares at Rs 10 each at par), which was oversubscribed 55 times, and listed at around Rs 40 per share at the time. It was listed on the Bombay Stock Exchange on 19 May, 1995 and on the National Stock Exchange on 8 November, 1995. Despite the hesitation of the people, the IPO received an unbelievable response, and went on to become one of the most sought after shares at the time. It is also listed on the New York Stock Exchange (NYSE)

Equity Shares

This year, when the bank and the parent company announced their merger, the HDFC stock price shot up by 10% in a single session. However, since then, due to the earnings having pulled down the investors favour, the HDFC share price has declined by 18%. This is even though the net profit of the bank was higher by 23% in 2 years along with 20% loan growth. Unfortunately, it was the operating profit that has fallen steadily since the pandemic hit, recording low net interest margins. The bank’s shares fell 4.6% in April. However, the valuation of the HDFC Bank share price has always been superior as compared to its competitors in the banking industry. But, ICICI and Axis are closing the gap at a very fast rate. The odds of the bank maintaining its distinguished worth and feature of outsized profitability much beyond the merger years have reduced drastically.

Annual Financial Statement

12 mths12 mths12 mths12 mths12 mths
Equity Share Capital554.55551.28548.33544.66519.02
TOTAL SHARE CAPITAL554.55551.28548.33544.66519.02
Revaluation Reserve0.
Reserves and Surplus239,538.38203,169.55170,437.70148,661.69105,775.98
Total Reserves and Surplus239,538.38203,169.55170,437.70148,661.69105,775.98
TOTAL SHAREHOLDERS FUNDS240,092.94203,720.83170,986.03149,206.35106,295.00
Other Liabilities and Provisions84,407.4672,602.1567,394.4055,108.2945,763.72
TOTAL CAPITAL AND LIABILITIES2,068,535.051,746,870.521,530,511.261,244,540.691,063,934.32
Cash and Balances with Reserve Bank of India129,995.6497,340.7472,205.1246,763.62104,670.47
Balances with Banks Money at Call and Short Notice22,331.2922,129.6614,413.6034,584.0218,244.61
Fixed Assets6,083.674,909.324,431.924,030.003,607.20
Other Assets85,767.8345,925.8953,931.0949,173.9536,878.70
TOTAL ASSETS2,068,535.051,746,870.521,530,511.261,244,540.691,063,934.32
Number of Branches6,342.005,608.005,416.005,103.004,787.00
Number of Employees141,579.00120,093.00116,971.0098,061.0088,253.00
Capital Adequacy Ratios (%)18.9018.7919.0017.0015.00
Tier 1 (%)17.8717.5617.0016.0013.00
Tier 2 (%)
Gross NPA16,140.9615,086.0012,649.9711,224.168,606.97
Gross NPA (%)
Net NPA4,407.684,554.823,542.363,214.522,601.02
Net NPA (%)0.320.400.360.000.00
Net NPA To Advances (%)
Bills for Collection56,968.0544,748.1451,584.9049,952.8042,753.83
Contingent Liabilities1,395,442.30971,097.601,128,953.401,024,715.12875,488.23
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