HDFC Bank Ltd.

:
Organisational Profile

Submitted by :
Ashok Kumar Choudhary
Roll No. 2016PGPM034
IIM INDORE MUMBAI CAMPUS

1. Organisation Description
HDFC (Housing Development Finance Corporation) Bank Ltd is one of Indias largest private
banks. Housing Development Finance Corporation Ltd was founded in 1977 by Hasmukhbhai
Parekh as a housing finance body. Later on after liberalisation of Indian economy in 1991, it
became one of the first to get in principal approval from RBI to open a private sector bank in
1994. It started operations in January 1995 as a scheduled commercial bank.
It is promoted by HDFC group. HDFC is India's premier housing finance company and enjoys
an impeccable track record in India as well as in international markets. Since its inception in
1977, the Corporation has maintained a consistent and healthy growth in its operations to
remain the market leader in mortgages. HDFC has developed significant expertise in retail
mortgage loans to different market segments and also has a large corporate client base for
its housing related credit facilities. HDFC group holds about 21.49% in the bank.
It is a public company listed on BSE, NSE and NYSE with a market capitalisation of ********.
It acquired Times Bank in 2010 and Punjab Centurion bank in 2008 in an all stock deal.
2. Values, Vision & Mission
Vision:
-to be customer driven best manged entity that enjoys market leadership in providing

housing related finance

Mission:
- Your Banks mission is to be a World Class Indian Bank benchmarking itself against

international standards and best practices in terms of product offerings, technology,

customer service levels, risk management, audit and compliance. The objective is to
continue building sound customer franchises across distinct businesses so as to be a
preferred provider of banking services for its target retail and wholesale customer segments
and to achieve a healthy growth in profitability, consistent with the Banks risk appetite.
Values:
- Your Banks business philosophy is based on five core values: Customer Focus, Operational

Excellence, Product Leadership, People and Sustainability. Based on these cornerstones, it is

your Banks aim to meet the financial needs of customers while ensuring service of the
highest quality. Your Bank is committed to do this while ensuring the highest levels of
ethical standards, professional integrity, corporate governance and regulatory compliance.
The Bank understands and respects its fiduciary role and responsibility to all stakeholders
and strives to meet their expectations. The cardinal principles of independence,
accountability, responsibility, transparency, fair and timely disclosures serve as the basis of
your Banks approach to corporate governance. Your Bank believes that diversity and
independence of the Board, transparent disclosures, shareholder communication and
effective regulatory compliance are necessary for creating and sustaining shareholder value.
Your Bank has infused these principles into all its activities. Your Bank also has a welldocumented Code of Ethics / Conduct which defines the high business responsibility and

ethical standards to be adhered to while conducting the business of the Bank and mandates
compliance with legal and regulatory requirements. All employees, including senior
management have to affirm annually that they have adhered to the Code of Conduct rules.

3. Management
i) Board of Directors:
HDFC Bank's Board of Directors comprises eminent individuals with a wealth of experience
in public policy, administration, industry and commercial banking. Senior executives
representing HDFC Ltd. are also on the Board. Various businesses and functions in the Bank
are headed by senior executives with work experience in India and abroad. They report to
the Managing Director. The Bank is focussed on recruiting and retaining the best talent in
the industry as it believes that its people are a competitive strength.
Board of members:
1. Mrs Shyamala Gopinath

7. Mr Keki Mistry

2. Mr Partho Datta

8. Mrs Renu Karnad

3. Mr Bobby Parikh

9. Mr Aditya Puri

4. Mr A N Roy

10. Mr Kaizad Bharucha

5. Mr Malay Patel

11. Mr Paresh Sukthankar

6. Mr Umesh Chandra Sarangi

12. Mr Srikanth Nadhamuni

ii) Management
Managing Director- Mr Aditya Puri
Country head(Branch Banking)- Mr Navin Puri
Country head(Equities and private banking)- Mr Abhay Aima

3. Distribution Network
HDFC Bank is headquartered in Mumbai. As of June 30, 2016, the Banks distribution
network was at 4,541 branches across 2,587 cities. All branches are linked online on a realtime basis. Customers across India are also serviced through multiple delivery channels such
as Phone Banking, Net Banking, Mobile Banking, and SMS based banking. The Banks
expansion plans take into account the need to have a presence in all major industrial and
commercial centers, where its corporate customers are located, as well as the need to build
a strong retail customer base for both deposits and loan products. Being a clearing /
settlement bank to various leading stock exchanges, the Bank has branches in centres where

the NSE / BSE have a strong and active member base. The Bank also has a network of 12,013
ATMs across India. HDFC Banks ATM network can be accessed by all domestic and
international Visa / MasterCard, Visa Electron / Maestro, Plus / Cirrus and American Express
Credit / Charge cardholders.
4. Technology
HDFC Bank operates in a highly automated environment in terms of information technology
and communication systems. All the banks branches have online connectivity, which
enables the bank to offer speedy funds transfer facilities to its customers. Multi-branch
access is also provided to retail customers through the branch network and Automated
Teller Machines (ATMs).
The Bank has made substantial efforts and investments in acquiring the best technology
available internationally, to build the infrastructure for a world class bank. In terms of core
banking software, the Corporate Banking business is supported by Flexcube, while the Retail
Banking business by Finware, both from i-flex Solutions Ltd. The systems are open, scaleable
and web-enabled.
The Bank has prioritised its engagement in technology and the internet as one of its key
goals and has already made significant progress in web-enabling its core businesses. In each
of its businesses, the Bank has succeeded in leveraging its market position, expertise and
technology to create a competitive advantage and build market share.
5. Businesses
HDFC Bank caters to a wide range of banking services covering commercial and investment
banking on the wholesale side and transactional / branch banking on the retail side. The
bank has three key business segments:
Wholesale Banking
The Bank's target market is primarily large, blue-chip manufacturing companies in the
Indian corporate sector and to a lesser extent, small & mid-sized corporates and agribased businesses. For these customers, the Bank provides a wide range of commercial
and transactional banking services, including working capital finance, trade services,
transactional services, cash management, etc. The bank is also a leading provider of
structured solutions, which combine cash management services with vendor and
distributor finance for facilitating superior supply chain management for its corporate
customers. Based on its superior product delivery / service levels and strong customer
orientation, the Bank has made significant inroads into the banking consortia of a
number of leading Indian corporates including multinationals, companies from the
domestic business houses and prime public sector companies. It is recognised as a
leading provider of cash management and transactional banking solutions to corporate
customers, mutual funds, stock exchange members and banks.
Treasury
Within this business, the bank has three main product areas - Foreign Exchange and
Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the
liberalisation of the financial markets in India, corporates need more sophisticated risk

management information, advice and product structures. These and fine pricing on
various treasury products 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.
Retail Banking
The objective of the Retail Bank is to provide its target market customers a full range of
financial products and banking services, giving the customer a one-stop window for all
his/her banking requirements. The products are backed by world-class service and
delivered to customers through the growing branch network, as well as through
alternative delivery channels like ATMs, Phone Banking, NetBanking and Mobile
Banking.
The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus
and the Investment Advisory Services programs have been designed keeping in mind
needs of customers who seek distinct financial solutions, information and advice on
various investment avenues. The Bank also has a wide array of retail loan products
including Auto Loans, Loans against marketable securities, Personal Loans and Loans
for Two-wheelers. It is also a leading provider of Depository Participant (DP) services
for retail customers, providing customers the facility to hold their investments in
electronic form.
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 March 2015, the bank
had a total card base (debit and credit cards) of over 25 million. The Bank is also one of
the leading players in the "merchant acquiring" business with over 235,000 Point-ofsale (POS) terminals for debit / credit cards acceptance at merchant establishments.
The Bank is well positioned as a leader in various net based B2C opportunities including
a wide range of internet banking services for Fixed Deposits, Loans, Bill Payments, etc.
Products and Services:
Travelers Cheques
credit card
home loan
personal loan
Foreign Currency Cash
Foreign Currency Demand Drafts
Cheque Deposits

 Remittances
Trade Services
Mutual funds
Insurance
Savings Account
Current Accounts
Mutual Fund
Insurance
8. Financial Position
i) Capital Structure
As on 31st March, 2016 the authorized share capital of the Bank is Rs. 550 crore. The paidup share capital of the Bank as on the said date is Rs 505,63,73,034/- ( 2528186517 equity
shares of Rs. 2/- each). The HDFC Group holds 21.49 % of the Bank's equity and about 18.71
% of the equity is held by the ADS / GDR Depositories (in respect of the bank's American
Depository Shares (ADS) and Global Depository Receipts (GDR) Issues). 32.22 % of the equity
is held by Foreign Institutional Investors (FIIs) and the Bank has 4,79,869 shareholders.
The shares are listed on the Bombay Stock Exchange Limited and The National Stock
Exchange of India Limited. The Bank's American Depository Shares (ADS) are listed on the
New York Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's Global Depository
Receipts (GDRs) are listed on Luxembourg Stock Exchange under ISIN No US40415F2002.
ii) financial position
Net Profit: 12,296 crore. An increase of 20.4% compared to the previous year
Balance Sheet Size: 708,846 crore. An increase of 20.0% compared to the previous year
Total Deposits: 546,424 crore. An increase of 21.2% compared to the previous year
Total Advances: 464,594 crore. An increase of 27.1% compared to the previous year
Capital Adequacy Ratio: 15.5%
Tier I Capital Ratio: 13.2%
Gross Non-Performing Assets: 0.94% of Gross Advances
Network: - Branches: 4,520 - ATMs: 12,000 - Cities/Towns: 2,587

Balance Sheet of HDFC Bank

------------------- in Rs. Cr. ------------------Mar '16

Mar '15

Mar '14

Mar '13

12 mths

12 mths

12 mths

12 mths

Total Share Capital

505.64

501.30

479.81

475.88

Equity Share Capital

505.64

501.30

479.81

475.88

0.00

0.00

0.00

0.00

Reserves

72,172.13

61,508.12

42,998.82

35,738.26

Net Worth

72,677.77

62,009.42

43,478.63

36,214.14

546,424.19

450,795.64

367,337.48

296,246.98

Borrowings

53,018.47

45,213.56

39,438.99

33,006.60

Total Debt

599,442.66

496,009.20

406,776.47

329,253.58

36,725.13

32,484.46

41,344.40

34,864.17

708,845.56

590,503.08

491,599.50

400,331.89

Mar '16

Mar '15

Mar '14

Mar '13

12 mths

12 mths

12 mths

12 mths

Capital and Liabilities:

Share Application Money

Deposits

Other Liabilities & Provisions

Total Liabilities

Assets
Cash & Balances with RBI

30,058.31

27,510.45

25,345.63

14,627.40

Balance with Banks, Money at Call

Advances

8,860.53
464,593.96

8,821.00
365,495.03

14,238.01
303,000.27

12,652.77
239,720.64

Investments

163,885.77

166,459.95

120,951.07

111,613.60

3,343.16
3,343.16

3,121.73
3,121.73

2,939.92
2,939.92

2,703.08
2,703.08

2
2

Gross Block
Net Block
Other Assets

38,103.84

19,094.91

25,124.60

19,014.41

Total Assets

708,845.57

590,503.07

491,599.50

400,331.90

Contingent Liabilities

876,808.11

997,538.88

744,097.98

746,226.39

287.47

247.39

181.23

152.20

Book Value (Rs)

Source : Dion Global Solutions Limited

10. Challenges and Opportunities

--------------------------------------------------------------------------------------------------------------------------

Thank You