HDFC Bank facts for kids
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| Public | |
| Traded as | |
| ISIN | ISIN: [https://isin.toolforge.org/?language=en&isin=INE040A01034 INE040A01034] |
| Industry | Financial services |
| Founded | August 1994 |
| Headquarters |
,
India
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Area served
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India |
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Key people
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| Products |
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| Revenue |  ₹4.08 lakh crore (US$69 billion) (2024) |
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Operating income
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₹76,568 crore (US$13 billion) (2024) |
| ₹64,062 crore (US$11 billion) (2024) |
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| Total assets | ₹36.17 lakh crore (US$610 billion) (2024) |
| Total equity | ₹4.53 lakh crore (US$77 billion) (2024) |
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Number of employees
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177,000 (1 July 2023) |
| Subsidiaries | HDFC Life HDFC ERGO HDFC Securities HDFC AMC (HDFC Mutual Fund) HDB Financial Services HDFC Capital Advisors |
HDFC Bank Limited (also known as HDFC) 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 sixth-largest bank by market capitalization as of January 2024, following its takeover of parent company HDFC. 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 Indian stock exchanges. It is also the sixteenth largest employer in India with over 173,000 employees.
Contents
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, marking the first merger of two private banks in the new-generation private sector banks category. 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 February 2024, HDFC Bank's distribution network included 8,192 branches and 20,760 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.
Subsidiaries and associates
Notable subsidiaries and associate companies of HDFC Bank include:
| Name | Type | Ownership stake | Ref |
|---|---|---|---|
| HDFC Life | Life insurance | 50.37% | |
| HDFC ERGO | General insurance | 50.48% | |
| HDFC Asset Management Company | Mutual funds | 52.55% | |
| HDFC Securities | Stockbroking | 95.48% | |
| HDB Financial Services | Consumer finance | 94.84% | |
| HDFC Capital Advisors | Private equity real estate | 90% | |
| HDFC Credila | Education finance | 9.99% |
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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.
As per their shareholding pattern, the top shareholders are
| Shareholders (as of 31 March 2024[update]) | Shareholding | ||||||
|---|---|---|---|---|---|---|---|
| Promoter group | 0% | ||||||
| Foreign institutional investors (FII) | 47.83% | ||||||
Domestic institutional investors (DII)
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33.60%
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| Individual and non-institutional shareholders | 18.56% |
Corporate social responsibility
Parivartan
Parivartan is an umbrella term for all of the corporate social responsibility initiatives by HDFC Bank.
HDFC Bank's Parivartan initiative spent ₹535 crore in FY 2019–20.
HDFC Bank spent ₹6349.1 million towards Parivartan, in FY 2020-21. Out of ₹6349 million, over ₹1.10 billion was allocated and used towards initiatives focused on COVID-19 relief.
HDFC Bank has pledged to become carbon-neutral by 2032.
Awards and recognition
2016
- Best Banking Performer, India in 2016 by Global Brands Magazine Award.
- Best Performing Branch in Microfinance among private sector banks by NABARD, 2016, Award for Best Performance in Microfinance
- 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
- J. P. Morgan Quality Recognition Award, Best in class straight-through processing rates
2018
- Company of the year: The Economic Times Corporate Excellence Awards
- Best Performing Private Bank in Total Aadhaar Generation & Update: Aadhaar Excellence Awards
- NPCI - National Payments Excellence Awards
2019
- Best Bank: New Private Sector – FE Best Bank awards
- Winner in Innovation and Inclusiveness in Priority Sector Lending – 11th Inclusive Finance India Awards (IFI) 2019
- Ranked 1st in 2019 BrandZ Top 75 Most Valuable Indian Brands HDFC Bank was featured for the 6th consecutive year.
- Among The Most Honored Company List, Institutional Investor All-Asia (ex-Japan) Executive Team 2019 survey
- India's Best Bank, Euromoney Awards for Excellence 2019
- Bank of the Year and Best Large Bank, Business Today – Money Today Financial Awards 2019
- Best Bank in India 2019, by Global magazine FinanceAsia.
- Ranked 60th in 2019 BrandZ Top 100 Most Valuable Global Brands HDFC Bank was featured BrandZ Top 100 Most Valuable Global Brands 2019 for the 5th consecutive year. The Bank's brand value has gone up from $20.87 billion in 2018 to $22.70 billion in 2019.
- Best Large Bank & Fastest Growing Large Bank in 2019, by Business World Magna Awards
- India's leading private sector bank: Dun & Bradstreet BFSI Awards
2020
- Best Bank in India: Euromoney Awards
- Best Bank in India: FinanceAsia Country Awards
2021
- Best bank in india: FinanceAsia Country Awards
- Best bank for SMEs: Asiamoney best bank awards
- Best bank in india:The Euromoney Awards for Excellence
- Ranks No. 1 in Mass Affluent category:Euromoney Private Banking and Wealth Management Survey
- On 12 January 2022 HDFC BANK has been adjudged 'Best Private Bank in India' at the Global Private Banking Awards 2021, Organised by Professional Wealth Management (PWM)
2022
- Best Bank In India: Euromoney Awards for Excellence 2022
See also
- HDFC Life
- Aditya Puri
- Banking in India
- List of banks in India
- List of companies of India
