HDFC Bank Limited is an Indian banking and financial services company headquartered
in Mumbai, Maharashtra. It is the fifth largest bank in India by assets, incorporated in 1994. It is
the largest private sector bank in India by market capitalization as of 24 February 2014. As on
Jan 2 2014, the market cap value of HDFC was around US$26.88 billion, as compared to Credit
Suisse Group with US$47.63 billion. The bank was promoted by the Housing Development
Finance Corporation, a premier housing finance company (set up in 1977) of India. According to
the Brand Trust Report 2014, HDFC was ranked 32nd among India's most trusted brands. 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.
Products
HDFC Bank offers the following core products:
NRI banking
Under NRI Banking, HDFC offers:
Money Transfer
Research Reports
Payment Services
SME banking
Under SME Banking, HDFC offers:
Business Financing
Trade Services
Cards
Wholesale banking
HDFC offers Wholesale Banking for Corporates and Financial Institutions & Trusts. The Bank
also provides services such as Investment Banking and other services in the Government sector.
Services
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.
Treasury
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.
Operations
As of 30 September 2013, HDFC Bank has 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 Banks retail loan products. HDFC Bank holds 97.4% shares
in HDBFS. As of March 31, 2013, HDBFS has 230 branches in 184 cities. During the FY 2012-
13, HDBFS had turnover of INR 9.6 billion and profit after tax of INR 1 billion. It has 6,404
employees as of 31 March 2013.
HDFC Securities Limited (HSL): HSL is engaged in stock broking. As of March 31, 2013,
HDBFS has 194 branches across 150 cities. HDFC Bank has 62.1% shareholding in HSL.
During the FY 2012-13, 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.
Shareholding
22.72%
33.61%
Individual shareholders
08.43%
Bodies Corporate
08.01%
Insurance companies
05.38%
Mutual Funds/UTI
04.34%
NRI/OCB/Others
00.40%
Financial Institutions/Banks
00.09%
ADS/GDRs
17.02%
Total
100.0%
Employees
As of 31 March 2013, the company has 69,065 employees, out of which 12,295 are 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.
CSR Activities
HDFC Bank has taken several initiatives as part of its corporate social responsibility. It has
collaborated with several NGOs to assist in its activities.
Initiative
Objective
Activities
Provide livelihood finance to empower rural people, especially women at Credit Counseling
Livelihood
Financial Literacy
Market Linkages
Financial
Literacy
Library programs
children
Engineering scholarships
Child development program
Family based care programs
Skill-based courses
Training
Enhance employability of youth and women in the weaker sections of the Technical & vocational training
society by providing training and capacity development
Take responsibility for the effects of the operations of the Bank on the
environment and the society.
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Institutional Investor
Forbes Asia
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2012[edit]
DSCI Information Technology Award 2012
Economic Times
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Survey
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Year 2012
CNBC TV18's India Best Banks and Financial Institutions Awards Best Private Sector Bank
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2012
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Forbes Asia
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category
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Finance Asia
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Controversies
Money
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Programme
laundering
allegations
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transactions had taken place. The Executive Director of HDFC, Paresh Sukthankar, also
confirmed that their investigations revealed the same on April 24, 2013, The issue is being
reviewed and investigated from multiple quarters. Clearly, all the investigations have shown that
there have been no instances of transactions actually taking place. Our belief is that the existing
processes seem to have worked in not allowing these transactions to happen.
However, RBI investigations revealed violations of KYC (Know Your Customer) norms, for
which the three banks were imposed penalty, with Rs. 4.5 crores imposed on HDFC.