Public

Type
(BSE: 500180, NYSE: HDB)
Banking
Industry
Financial services
Founded August 1994
Founder(s) Deepak Parekh
Headquarters Mumbai, India
Jagdish Capoor
(Chairman)
Key people
Aditya Puri
(MD)
Investment Banking
Commercial Banking
Retail Banking
Products Private Banking
Asset Management
Mortgages
Credit Cards[1]
Revenue ▲ 20,266.99 crore (US$4.4 billion) (2010)[2]
Operating
▲ 4,419.01 crore (US$958.93 million) (2010)[2]
income
Profit ▲ 3,032.92 crore (US$658.14 million) (2010)[2]
Total assets ▲ US$ 39.723 billion (2009)[2]
Total equity ▼ 21,158.15 crore (US$4.59 billion) (2010)[2]
Employees 51,888 (2010)[3]

HDFC Bank Ltd. (BSE: 500180, NYSE: HDB) is a major Indian financial
services company based in Mumbai, incorporated in August 1994, after the
Reserve Bank of India allowed establishing private sector banks. The Bank
was promoted by the Housing Development Finance Corporation, a premier
housing finance company (set up in 1977) of India. HDFC Bank has 1,725
branches and over 4,232 ATMs, in 779 cities in India, and all branches of the
bank are linked on an online real-time basis. As of 30 September 2008 the
bank had total assets of Rs.1006.82 billion.[4] For the fiscal year 2008-09, the
bank has reported net profit of 2,244.9 crore (US$487.14 million), up 41%
from the previous fiscal. Total annual earnings of the bank increased by 58%
reaching at 19,622.8 crore (US$4.26 billion) in 2008-09.[5]

History

HDFC Bank was incorporated in 1994 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.

Times Bank Limited (owned by Bennett, Coleman & Co. / Times Group) was
merged with HDFC Bank Ltd., in 2000. 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.

In 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.

Business focus

HDFC Bank deals with three key business segments - Wholesale Banking
Services, Retail Banking Services, Treasury. It has entered the banking
consortia of over 50 corporates for providing working capital finance, trade
services, corporate finance and merchant banking. It is also providing
sophisticated product structures in areas of foreign exchange and
derivatives, money markets and debt trading and equity research.

Wholesale banking services

The Bank's target market ranges from large, blue-chip manufacturing
companies in the Indian corp to small & mid-sized corporates and agri-based
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. HDFC 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
recognized as a leading provider of cash management and transactional
banking solutions to corporate customers, mutual funds, stock exchange
members and banks.

Retail banking services

[[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.]] [[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 2009,
the bank had a total card base (debit and credit cards) of over 13 million.
The Bank is also one of the leading players in the “merchant acquiring”
business with over 70,000 Point-of-sale (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.

Balance sheet:-
 Mar ' Mar ' Mar ' Mar ' Mar '
10 09 08 07 06
Sources of funds
Owner's fund
Equity share capital 457.74 425.38 354.43 319.39 313.14
Share application money - 400.92 - - 0.07
Preference share capital - - - - -
21,064. 14,226. 11,142. 6,113.7 4,986.3
Reserves & surplus
75 43 80 6 9
Loan funds
Secured loans - - - - -
1,67,40 1,42,81 1,00,76 68,297. 55,796.
Unsecured loans
4.44 1.58 8.60 94 82
1,88,92 1,57,86 1,12,26 74,731. 61,096.
Total
6.93 4.31 5.83 09 42
Uses of funds
Fixed assets
4,707.9 3,956.6 2,386.9 1,917.5 1,589.4
Gross block
7 3 9 6 7
Less : revaluation reserve - - - - -
2,585.1 2,249.9 1,211.8
Less : accumulated depreciation 950.89 734.39
6 0 6
2,122.8 1,706.7 1,175.1
Net block 966.67 855.08
1 3 3
Capital work-in-progress - - - - -
58,607. 58,817. 49,393. 30,564. 28,393.
Investments
62 55 54 80 96
Net current assets
5,955.1 6,356.8 4,402.6 3,605.4 2,277.0
Current assets, loans & advances
5 3 9 8 9
Less : current liabilities & 20,615. 22,720. 16,431. 13,689. 7,849.4
provisions 94 62 91 13 9
- - - - -
Total net current assets 14,660. 16,363. 12,029. 10,083. 5,572.4
79 79 22 65 0
Miscellaneous expenses not
- - - - -
written
46,069. 44,160. 38,539. 21,447. 23,676.
Total
63 49 45 82 64
Notes:
Book value of unquoted
- - - - -
investments
Market value of quoted
- - - - -
investments
4,87,17 4,14,53 5,99,92 2,09,33 1,44,13
Contingent liabilities
6.37 3.93 8.79 8.61 7.86
 Mar ' Mar ' Mar ' Mar ' Mar '
10 09 08 07 06
Number of equity 4577.4 4253.8 3544.3 3193.9
3131.42
sharesoutstanding (Lacs) 3 4 3 0

SWOT of HDFC Bank

Strengths : -

1. Right strategy for the right products.

2. Superior customer service vs. competitors.
3. Great Brand Image.
4. Products have required accreditation.
5. High degree of customer satisfaction.
6. Good place to work
7. Lower response time with efficient and effective service.
8. Dedicated workforce aiming at making a long-term career in the field.

Weakness : –

1. Some gaps in range for certain sectors.

2. Customer service staff need training.
3. Processes and systems, etc
4. Management cover insufficient.
5. Sectoral growth is constrained by low unemployment levels and
competition for staff

Opportunities : –

1. Profit margins will be good.

 2. Could extend to overseas broadly.
3. New specialist applications.
4. Could seek better customer deals.
5. Fast-track career development opportunities on an industry-wide basis.
6. An applied research center to create opportunities for developing
techniques to provide added-value services.

Threats : -

1. Legislation could impact.

2. Great risk involved
3. Very high competition prevailing in the industry.
4. Vulnerable to reactive attack by major competitors.
5. Lack of infrastructure in rural areas could constrain investment.
6. High volume/low cost market is intensely competitive.

Distribution network

An HDFC Bank Branch

HDFC Bank is headquartered in Mumbai. The Bank has an network of 1,725

branches spread in 771 cities across India. All branches are linked on an
online real-time basis. Customers in over 500 locations are also serviced
through Telephone Banking. The Bank has a presence in all major industrial
and commercial centres across the country. Being a clearing/settlement
bank to various leading stock exchanges, the Bank has branches in the
centres where the NSE/BSE have a strong and active member base.
The Bank also has 3,898 networked ATMs across these cities. Moreover,
HDFC Bank's ATM network can be accessed by all domestic and international
Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express
Credit/Charge cardholders

 Established in 1978

 Promoted with an initial share capital of Rs. 100 million.

 Revamped Indian housing finance industry

Objectives of HDFC

 To cater social need - promoting home ownership by providing long-

term finance

 To enhance residential housing stock in the country

Organizational goals

 Develop close relationships with individual households

 Maintain its position as the premier housing finance institution in the

country

 Transform ideas into viable and creative solutions

 Provide consistently high returns to shareholders

 To grow through diversification by leveraging off the existing client

base

HDFC Founder
  Man with a mission- trend setter in Indian financial history

 Had vision for mortgage finance for housing, gave birth to the Housing
Development Finance Corporation

 Started career with newely formed ICICI

 1992 -Government of India honored him with the Padma Bhushan

Award

Core Services provided by HDFC

 Home loan

 Home Improvement loan

 Home Extension loan

 Short term bridging loan

 Land purchase loan

 Loans to Professionals for Non Residential Premises Loan

 Home equity loans

Awards & Accolades

 HDFC selected as the 'Top Indian Company in FIs / NBFCs / Financial

Services sector' for the Dun & Bradstreet – Rolta Corporate Awards
2008

 Mr. Deepak Parekh awarded the 'Business Leader of the Year' by NDTV

 Mr. Deepak Parekh conferred with the ‘CNBC Awaaz-CRISIL Lifetime

Achievement Award for Outstanding Contribution to Real Estate’

 Ranked 3rd amongst the Asian Banking and Finance Sector for ‘Highest
Return on Equity’ by Asia money
HDFC BANK

 HDFC Bank was incorporated in August 1994

 Among the first in new generation commercial banks

 Registered office in Mumbai, India

 Promoted by HDFC, the parent company

 IPO in India in 1995

 Listed in NSE, BSE, NYSE(ADR)

NETWORK

 1416 branches

 3570 ATM’s in the country

 550 cities in India

 All branches are OLRT connected

 500 locations serviced through Telebanking

 Representative offices in Hong Kong, New York, London & Singapore

Business Strategy
  Increasing market share in India’s expanding banking.

 Delivering high quality customer service.

 Delivering more products to more customers.

 Maintaining current high standards for asset quality through disciplined

credit risk management.

 Develop innovative products and services that attract targeted

customers and address inefficiencies in the Indian financial sector.

Achievements

 HDFC Bank merged with TIMES BANK in 2000.

 HDFC Bank merged with CENTURION BANK OF PUNJAB in 2007.

 HDFC Bank wins the Asian Banker Best Retail Bank in India Award 2008
for outstanding performance.

 HDFC Bank chosen as one of Asia Pacific’s best 50 companies by

Forbes magazine.

 'Best Bank in the Private Sector 2008.'

 HDFC Bank ties up with Qatar National Bank.

Vision

 'The most successful and admired life insurance company, which

means that we are the most trusted company, the easiest to deal with,
offer the best value for money, and set the standards in the industry'.

 'The most obvious choice for all'.