Wikipedia

HDFC Bank

(Redirected from Payzapp)
Not to be confused with Housing Development Finance Corporation.

HDFC Bank Limited 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 tenth-largest bank by market capitalization as of May 2024.[9][10]

HDFC Bank Limited
Company typePublic
ISININE040A01034
IndustryBanking
Financial services
FoundedAugust 1994 (30 years ago) (August 1994)
Headquarters
Mumbai, Maharashtra
,
India
Number of locations
India:
8,851 Branches
20,938 ATMs
Area served
India
Key people
Products
RevenueIncrease ₹407,994 crore (US$49 billion)[3] (2024)
Increase ₹76,568 crore (US$9.2 billion)[4] (2024)
Increase ₹64,062 crore (US$7.7 billion)[3] (2024)
Total assetsIncrease ₹36.17 lakh crore (US$430 billion)[5] (2024)
Total equityIncrease ₹4.53 lakh crore (US$54 billion)[5] (2024)
Number of employees
213,527 (31 March 2024)[6]
SubsidiariesHDFC Life
HDFC ERGO
HDFC Securities[7]
HDFC AMC (HDFC Mutual Fund)
HDB Financial Services[8]
HDFC Capital Advisors
Websitewww.hdfcbank.com Edit this at Wikidata

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”.[11][12]

As of April 2024, HDFC Bank has a market capitalization of $145 billion making it the third-largest company on the Indian stock exchanges.[13] It is also the sixteenth largest employer in India with over 173,000 employees, following its takeover of parent company Housing Development Finance Corporation.[14][15]

History

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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.[16][17] The bank commenced operations in January 1995, with its registered office in Mumbai.[18] Its first corporate office and a full-service branch at Sandoz House, Worli, was inaugurated by the then Union Finance Minister, Manmohan Singh.[citation needed]

In February 2000, Times Bank merged with HDFC Bank, which was India's first-ever voluntary merger of banks.[19] Times Bank was established by India's largest media conglomerate, The Times Group.[20]

In July 2001, HDFC Bank's ADS listed on the New York Stock Exchange after an IPO.[21]

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.[22]

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.[23]

HDFC Ltd–HDFC Bank merger

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On 4 April 2022, HDFC Ltd announced that it would merge with HDFC Bank, marking India's largest-ever M&A deal.[24][25] 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.[26]

On 1 July 2023, the merger of HDFC Ltd with HDFC Bank was completed.[27][28] 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.[29][30]

The combined entity had a customer base of 120 million, surpassing the population of Germany in size.[31] 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.[32] The number of branches increased to 8,300.[33]

Shares of HDFC Ltd were delisted and shareholders were allotted 42 shares of HDFC Bank for every 25 shares of HDFC Ltd held,[34] leading to an increase in the equity capital of HDFC Bank.[35]

Operations

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A branch of HDFC Bank in Hyderabad

As of March 2024, HDFC Bank's distribution network included 8,735 branches and 20,938 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.[36]

HDFC Bank is the sole private bank operating in the union territory of Lakshadweep after opening a branch in Kavaratti island.[37]

Products and services

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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.[38] Company also launched smart wealth app in 2024.[39]

Digital rupee

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Main article: Digital rupee

On August 29, 2024, HDFC Bank introduced User-Level Programmability on Digital rupee. It is now supported by the HDFC Bank Digital Rupee Wallet, allowing users to guarantee that payments are paid for specified purpose. Individual users can optionally design other characteristics using this capability, such as the validity period or the geographic regions in which Digital rupee can be utilized.[40]

Subsidiaries and associates

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Notable subsidiaries and associate companies of HDFC Bank include:

Name Type Ownership stake Ref
HDFC Life Life insurance 50.37% [41]
HDFC ERGO General insurance 50.48% [42]
HDFC Asset Management Company Mutual funds 52.55% [43]
HDFC Securities Stockbroking 95.48% [44]
HDB Financial Services Consumer finance 94.84% [45]
HDFC Capital Advisors Private equity real estate 90% [46]
HDFC Credila Education finance 9.99% [47]
 
An HDFC Bank branch located in Dehradun

Listings and shareholding

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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.[48]

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..[49][50]

Suspension of Partnership with Apple

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In 2024, HDFC Bank temporarily suspended its partnership with Apple, which had been in place since 2019. Parag Rao, the Group Head of Payments at HDFC Bank, stated that the bank regularly reviews its partnerships and that the decision to pause the collaboration was based on the cost-to-income ratio, which no longer aligned with the bank's strategic objectives. Rao referred to the move as a "temporary break."[51]

The partnership had made HDFC Bank the exclusive banking partner for Apple's promotional offers in India, providing HDFC customers with special benefits when purchasing Apple products. However, after the suspension, Apple was reported to have partnered with American Express, Axis Bank, and ICICI Bank to offer similar promotional benefits to its customers in India.[52]

Controversies

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On 2 December 2020, the Reserve Bank of India (RBI) ordered HDFC Bank to temporarily halt the issuance of new credit cards and all planned activities under the bank's Digital 2.0 program, citing incidents of outages in the bank's internet banking, mobile banking and payment utility services.[53][54]

On 29 January 2020, RBI imposed a monetary penalty on HDFC Bank for failure to undertake ongoing due diligence in case of 39 current accounts opened for bidding in the initial public offer.[55]

A HDFC Bank manager was arrested on charges of fraud, involving a sum of ₹59,41,000 in Odisha.[56]

Altico Capital and Dubai's Mashreq Bank have approached RBI, accusing HDFC Bank of violating regulatory provisions by debiting part of the funds the company had raised through external commercial borrowing (ECB) and parked at the bank. They claimed that HDFC bank's decision to transfer money from the account may be a violation of the RBI's end-use rule.[57]

On 27 May 2021, RBI imposed a penalty of ₹100 million on HDFC Bank for deficiencies in regulatory compliances with regard to its auto loan portfolio. The said penalty was imposed with regard to the contraventions of certain provisions of the Banking Regulation Act, 1949.[58]

In March 2023, HDB Financial Services suffered a breach exposing the data of more than 70 million customers, including email addresses, names, dates of birth, phone numbers, genders, post codes and loan information belonging to the customers.[59]

Awards and recognition

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  • In 2023, HDFC Bank received the "Conscious Corporate of the Year" award at the Economic Times Awards.[60]
  • KPMG study of India's Best Banks, Bank of the year & best digital banking initiative award 2016[61]
  • BrandZ Rankings, Most Valued brand in India for third successive year[62]
  • FinanceAsia poll on Asia's Best Companies 2015, Best managed public company – India[63]

See also

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References

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  1. ^ "RBI approves appointment of Atanu Chakraborty as part-time chairman of HDFC Bank". thehindu.com. Archived from the original on 23 April 2021. Retrieved 22 April 2021.
  2. ^ "Balance Sheet of HDFC Bank". moneycontrol. Archived from the original on 4 April 2020. Retrieved 7 January 2016.
  3. ^ a b "HDFC Bank Consolidated Profit & Loss account, HDFC Bank Financial Statement & Accounts" (PDF).
  4. ^ "HDFC Bank Scores Strong Q4: Profits Up 37%, Dividend Declared". Bru Times News.
  5. ^ a b "HDFC Bank Consolidated Balance Sheet, HDFC Bank Financial Statement & Accounts" (PDF).
  6. ^ "HDFC Bank Annual Report" (PDF). HDFC BANK. Retrieved 18 July 2024.
  7. ^ Securities, HDFC. "About Us". hdfcsec.com. Archived from the original on 11 January 2021. Retrieved 9 December 2020.
  8. ^ "How HDB Financial Services Can Add To HDFC Bank's Long Rally". Moneycontrol. Archived from the original on 26 April 2021. Retrieved 26 April 2021.
  9. ^ "HDFC Bank most valuable brand in India: WPP study". Livemint. 10 September 2015. Archived from the original on 28 November 2019. Retrieved 7 January 2016.
  10. ^ "HDFC Ltd. to merge into HDFC Bank effective July 1, 2023". hdfcbank.com. HDFC Bank. 30 June 2023. Retrieved 6 December 2023.
  11. ^ "RBI releases 2022 list of Domestic Systemically Important Banks (D-SIBs)". rbi.org.in. RBI. 2 January 2023. Retrieved 6 December 2023. State Bank of India, ICICI Bank, and HDFC Bank continue to be identified as Domestic Systemically Important Banks (D-SIBs), under the same bucketing structure as in the 2021 list of D-SIBs.
  12. ^ "RBI releases Domestic Systemically Important Banks (D-SIBs) of 2022". Livemint. New Delhi. 2 January 2023. Retrieved 6 December 2023.
  13. ^ "Largest bank by Market capitalization". MoneyControl. Archived from the original on 6 June 2021. Retrieved 1 October 2014.
  14. ^ "Financial Results (Indian GAAP) for the Quarter and Year Ended March 31, 2023" (PDF). hdfcbank.com. HDFC Bank. 31 March 2023. p. 4. Retrieved 16 November 2023.
  15. ^ "HDFC Bank: Number of Employees 2006–2021 | HDB". macrotrends.net. Archived from the original on 22 May 2021. Retrieved 22 May 2021.
  16. ^ "About HDFC Bank". hdfcbank.com. HDFC Bank. Retrieved 6 December 2023.
  17. ^ "HDFC Bank Ltd" (PDF). careratings.com. CARE Ratings. 2 May 2023. Retrieved 6 December 2023. The Housing Development Finance Corporation Limited (HDFC) was among the first institutions to receive an 'in principle' approval from RBI to set up a bank in the private sector, as part of the RBI's liberalization of the Indian banking industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited' (HBL), with its registered office in Mumbai, India.
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  19. ^ "Hdfc, Timesbank Merger By Feb 25". Business Standard. Retrieved 12 May 2024.
  20. ^ Bandyopadhyay, Tamal (19 November 2012). "A Bank for the Buck". Livemint. Archived from the original on 3 April 2020. Retrieved 27 March 2020.
  21. ^ "HDFC Bank prices ADS at $13.83: Reuters". Rediff.com. Retrieved 8 May 2024.
  22. ^ "HDFC Bank buys Centurion in India's biggest financial sector buyout". The New York Times. 4 December 2008. Retrieved 8 May 2024.
  23. ^ "Kotak Mahindra Bank, HDFC Bank To Acquire 9.99% Each In Ferbine". Moneycontrol. 26 February 2021. Archived from the original on 14 April 2021. Retrieved 4 March 2021.
  24. ^ "HDFC HDFC Bank Merger: HDFC to merge with HDFC Bank in India's biggest-ever M&A |". The Times of India. 5 April 2022.
  25. ^ Singh, Preeti; Patil, Divya (30 June 2023). "Bank Giant Bigger Than Morgan Stanley Arises From India Merger". Bloomberg.com.
  26. ^ Kulkarni, Sneha (3 July 2023). "What is the HDFC Bank-HDFC merger date". The Economic Times. ISSN 0013-0389. Retrieved 4 July 2023.
  27. ^ "HDFC Bank completes merger with HDFC after final board approval". The Economic Times. 1 July 2023. Retrieved 27 December 2023.
  28. ^ Mishra, Lalatendu (1 July 2023). "HDFC Bank completes merger formalities, rebrands HDFC Ltd. offices, branches". The Hindu. Retrieved 27 December 2023.
  29. ^ "HDFC Ltd-HDFC Bank merger: Behind Sashi Jagdishan's big plans for HDFC Bank". Business Today. 20 July 2023. Retrieved 27 December 2023.
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  32. ^ "Spotlight on HDFC Ltd and HDFC Bank Merger !". CNBCTV18. 3 July 2023. Retrieved 27 December 2023.
  33. ^ "HDFC Ltd and HDFC Bank complete their merger today: Take a look at what's happened so far". Zee Business. 1 July 2023. Retrieved 27 December 2023.
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  35. ^ Tan, Charmaine Jacob, Joanna (3 July 2023). "India's HDFC Bank completes $40 billion takeover of the country's largest mortgage lender. Here's what it means". CNBC. Retrieved 27 December 2023.{{cite news}}: CS1 maint: multiple names: authors list (link)
  36. ^ "HDFC Bank Distribution Network". Retrieved 12 April 2024.
  37. ^ "Sole Private Bank Operator in UT Lakshdweep". The Indian Express. 10 April 2024. Retrieved 12 April 2024.
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  39. ^ "HDFC Bank launches SmartWealth app". The Times of India. 24 June 2024.
  40. ^ "HDFC Bank unveils new UPI and CBDC features to enhance customers' digital banking experience". Financialexpress. 29 August 2024. Retrieved 13 September 2024.
  41. ^ "HDFC Life Insurance Company Limited". ICRA. Retrieved 8 May 2024.
  42. ^ "HDFC ERGO General Insurance Company Limited" (PDF). CARE Ratings. Retrieved 8 May 2024.
  43. ^ "HDFC Asset Management Company Limited". MarketScreener. Retrieved 8 May 2024.
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  45. ^ "HDB Financial Services Limited". CRISIL. Retrieved 8 May 2024.
  46. ^ "HDFC divests 10% stake in HDFC Capital Advisors to ADIA for Rs 184 cr". Business Standard. Retrieved 8 May 2024.
  47. ^ "HDFC Bank completes Rs 9,553 cr stake sale in education unit HDFC Credila". Business Standard. Retrieved 8 May 2024.
  48. ^ "HDFC bank: Information about American Depository Receipt". hdfc bank. Archived from the original on 22 October 2021. Retrieved 22 October 2021.
  49. ^ "HDFC Bank's Global Expansion". Bru Times News.
  50. ^ Written at New Delhi. "HDFC Bank terminates, de-lists GDRs from Luxembourg Stock Exchange". The hindu Business line. New delhi. 16 July 2019. Archived from the original on 22 October 2021. Retrieved 22 October 2021.
  51. ^ "This Indian Bank Suspends Partnership With Apple Over Cost Concerns - Details". Times Now. 2 September 2024. Retrieved 20 November 2024.
  52. ^ "HDFC Bank has taken 'temporary break' from its Apple iPhone partnership, bank says 'you can judge the quality of relationship by ...'". The Times of India. 4 September 2024. ISSN 0971-8257. Retrieved 20 November 2024.
  53. ^ "RBI asks HDFC Bank to halt issue of new credit cards, planned activities under Digital 2.0". Moneycontrol. 3 December 2020. Archived from the original on 7 December 2020. Retrieved 11 February 2022.
  54. ^ "Explained: Why RBI has asked HDFC Bank to stop digital launches, new credit card sourcing". The Indian Express. 8 December 2020. Archived from the original on 8 December 2020. Retrieved 8 December 2020.
  55. ^ "RBI imposes penalty on HDFC bank". rbi.org.in. Archived from the original on 30 January 2020. Retrieved 29 January 2020.
  56. ^ "A HDFC bank manager arrested for Rs 59.41 lakh fraud in Odisha". The New Indian Express. Archived from the original on 5 October 2019. Retrieved 16 August 2019.
  57. ^ Das, Saikat. "Altico and Mashreq approach RBI against HDFC Bank". The Economic Times. Archived from the original on 12 October 2019. Retrieved 13 October 2019.
  58. ^ "Reserve Bank of India imposes Rs 10 crore penalty on HDFC Bank". The indian express. Archived from the original on 23 October 2021. Retrieved 23 October 2021.
  59. ^ "HDB Financial Services flags data breach at service provider". The Economic Times. 7 March 2023. ISSN 0013-0389. Retrieved 27 June 2023.
  60. ^ "Conscious Corporate of the Year Award Winner". The Economic Times. 15 March 2024. Retrieved 30 September 2024.
  61. ^ "Bank of the Year/ Digital Bank: HDFC BANK". Business Today. Archived from the original on 2 March 2016. Retrieved 1 March 2016.
  62. ^ "livemint". HDFC Bank is still India's most valuable brand: Brandz ranking. 22 September 2016. Archived from the original on 7 October 2016. Retrieved 2 October 2016.
  63. ^ "Asia's best managed companies, part 3". FinanceAsia. 20 March 2015. Archived from the original on 29 January 2016. Retrieved 23 January 2016.

Further reading

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