hdfc bank

How Hdfc Banks Can Help You Live a Better Life

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HDFC Bank In shorts:

  • Founded: 1994
  • Headquarter: Mumbai
  • LIsted in NSE, BSE: HDFCBANK | 500180
  • Industry: Private Sector Bank
  • Symbol: HDFCBANK
  • Website: Hdfc bank

Hdfc Strong posiiton

  • Total deposits:₹ 13,35,060 Cr with YoY 16.3% increased
  • Retail Deposits:₹ 10,64,684 Cr
  • Advance: 11,32,837 crores with YoY 14.0% increased
  • Digital Transaction 95.7% of the total retail transactions
  • MERCHANT ACCEPTANCE POINTS is 21.34 lakhs with YoY 1.8%

Hdfc Bank Profile:

Hdfc bank is one of the leading and largest private sector banks in India offering a wide range of financial products and services to a diversified customers base.

Hdfc bank work in both parallel and unparallel in business to keep the customer satisfaction and keep the customer to travel for their purpose.

In the Unparallel approach, Hdfc bank built a robust delivery network comprising banking outlets, ATM, Cash deposits and withdrawal machines (CDMs), and merchants. Banking outlets comprise branches and fixed point Business Correspondents (BCs).

Hdfc has come forward in the Indian banking industry to not only enable in digital presence in India but also facilitate active participation in the Nation’s inclusive development agenda

Hdfc has also placed its position in No: 1 in the top 10 private companies in India

  • Total Banking Outlets are: 21,360
  • Total ATMs + cash deposit and withdrawal machines: 16,087
  • Total Business Correspondents (BCs): 15,756

In the Business vertical, Hdfc bank has services of Retail, Wholesale, Treasury

Retail Banking in Hdfc bank

The Retail Bank provides 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 the needs of customers who seek distinct financial solutions, information, and advice on various investment avenues

Retail banking services to

  1. Individual borrowers
  2. Salaried & professional borrowers
  3. Micro & medium sized businesses
  4. Extremely small businesses like kirana stores
  5. Self-help groups (SHGs)
  6. Non-resident Indians (NRIs)

Hdfc retail banking Products and services are:

Auto loans, Credit, Debit and Prepaid cards, Personal loans, Home loans, Gold loans, Mortgages, Commercial vehicles finance, Retail business banking, Savings account, Current account, Fixed and recurring deposits, Corporate salary accounts, Agri and tractor loans, SHG loans, Kisan Gold Card, Distribution of mutual funds, life, general and health insurance, Healthcare finance, Offshore loans to NRIs, NRI deposits, Small-ticket working capital loans, Business loans,• Two-wheeler loans, Loans against securities.

  • Growth in Domestic Retail Advances in FY21 ₹. 5,27,586 Crore which is 6.7%
  • Growth in Domestic Retail Deposits in FY21 is ₹. 10,64,684 Crore which is 21.1% higher

Wholesale Banking in Hdfc Bank

Hdfc’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 agri-based businesses.

 It is recognized as a leading provider of cash management and transactional banking solutions to corporate customers, mutual funds, stock exchange members, and banks.

Wholesale banking services to

  1. Large corporates including MNCs
  2. Government bodies
  3. Emerging corporates
  4. Business banking/SMEs
  5. Infrastructure finance group

Hdfc wholesale product and services are:

Working capital facilities, Term lending, Project finance, Debt capital markets, mergers and acquisitions, Trade credit, Supply chain financing, Forex and derivatives, Cash management services, Wholesale deposits, Letters of credit and guarantees, Custodial services, Correspondent banking

  • Growth in Domestic Wholesale Banking advances in FY21 is 21.7%

Treasury banking in Hdfc bank

Hdfc has three main product areas for their customer, they are Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. 

 It manages the liquidity and interest rate risks on the balance sheet and is also responsible for meeting statutory reserve requirements.

Hdfc has 2nd position in top 10 asset management companies in India

Treasury banking product and services

Foreign exchange & derivatives, Solutions on hedging strategies, Trade solutions – domestic and cross the border, Bullion, Debt capital markets, Equities, Research – Reports & commentary on markets and currencies, Asset liability management, Statutory reserve

  • Treasury revenues from Forex and Derivative transactions in FY21 is ₹ 2,438.4 Crore which is 13.16% higher

Hdfc also serve in select international markets

Hdfc bank set up branches and Representative Offices to provide Indian diaspora in Manama (Bahrain), Hong Kong, Dubai International Financial Center (DIFC), Abu Dhabi, Dubai, Nairobi (Kenya).

In offering NRI clients Offshore Deposits, Bonds, Equity, Mutual Funds, Treasury and Structured products offered by third parties from Bahrain Branch and also provide corporate clients by offering products such as trade credits, foreign currency term loans including external commercial borrowings (ECBs), and derivatives for hedging purpose.

The contribution of overseas branches to the Bank’s total income in FY21 is 0.64%

Hdfc Bank Strategy

To improve focus on what the Bank perceives as growth engines, Hdfc has fine-tuned strategic priorities by making them more granular. Strategy can be visualized as ten pillars supported by certain enablers. These are foundational to the Bank and hence critical for achieving our strategic goals

Re-Imagining the branch channel

  • Branches –One-Stop shop: Branches are well equipped to service all needs of customers
  • Business Correspondent: Reaching the doorstep of citizens through the Bank’s 15,756 Business Correspondents
  • Catchment Programme: Focus on acquiring HNW customers in the area as well as widening reach in every sphere of the catchment
  • Access to high end AI: Adoption of ‘Next Best Action’ – an Al-powered analytical tool helping ‘predict’ customer requirements

Virtual Relationship Management

Digital is transforming the marketplace. The Bank believed early that traditional relationship management is making way for technology and virtual engagement with customers.

In the last year, digital or contactless banking has become more of a necessity than a service enhancement. A banking experience with digital ease and personalized conversations is the core of our VRM strategy

The VRM practice is an integrated customer-centric approach covering three pillars.
• Virtual Relationship
• Virtual Sales
• Virtual Care

Seamless 24/7 access to customers with global service standards and Automated Interactive Voice Response solution in 12 languages with over 20 services

VRM practice leveraging four key components:
a) Omni Channel Engagement framework
b) Seamless digital journeys
c) Data Science led customer interaction
d) Robust talent pool of well-trained Virtual Relationship Managers

. The Virtual Relationship Managers serves the customer lifecycle under five pillars
a) Save, b) Invest, c) Borrow, d) Transact, e) Engage

Semi-Urban & Rural (SURU) and Government & Institutional (GI)

Bank’s tie-up with CSC for a special purpose vehicle (SPV) set up by the Ministry of Electronics and Information Technology (MEITY) to offer Citizen Facilitation Services digitally has been a catalyst in increasing the distribution footprint in the semi-urban and rural geography without incurring cost on setting up a brick & mortar model

Hdfc has a large distribution network including in rural areas, technological prowess, partnerships with key digital platform and solution providers, competitive product offerings, and a focus on granular business we are well-poised
to further our market share.

Leadership in Payments Business

To complete a suite of products and payment suite to the retail consumers, Hdfc is scaling BNPL with multiple variants that are built to make customer purchases convenient. Between Credit card EMI, Debit card EMI, paper financing they are riding the wave of innovation and have become No.1 among all banks in BNPL.

Over the years our strategy has evolved in line with the competitive landscape and market opportunities, From focusing only on large and key merchants in the top 30 cities to expanding the industry by investing in digitizing institutional segments

they launched SmartHub 3.0 – a comprehensive banking and payment solution range for all merchants. This range of solutions allows merchants and self-employed professionals to instantly open a mini savings account or current account and start accepting payments in-store, online, and on the go.

Technology/Digital

  • Continue to focus on scale to manage one of the largest franchises in the world; creating infrastructure partnerships and competencies for scale is a priority
  • Fortifying our infrastructure and building for resiliency
  • Focus of customer experience – make banking easy for young and old, urban and rural. Offering best-in-class experience for our existing and potential customers
  • Bring in operational efficiencies – build a highly productive workforce
  • Build a safe, transparent and a regulatorily compliant technology led bank that citizens can trust

Commercial and Rural

Focusing on the commercial and rural groups also supports the Bank’s goal of deep geographical penetration and expansion. Using customized product offering, digital expertise, and a deeper geographical presence, the Bank is contributing to bridging the gap between India and Bharat.

Retail Assets

HDFC Bank, with a strong distribution in both open market and internal customer franchise with digital strengths, is in the right position to leverage and grow across touchpoints and pin codes.

Corporate Cluster

Diversification of the corporate portfolio is also a key driver of the growth of the corporate cluster

Wealth

The Bank is creating new product offerings and improving its existing solutions to reach out to this population using technology. With a focus on ‘wealth’ as a strategic priority, the Bank aims to increase its wealth management customer base significantly,

Hdfc Financial analysis:

  • Total Income: 146,063.1 crore
  • Profit of the year: 31,116.5 Crore
  • Market capitalization: 8,44,44,244.66 Lakhs

Our net interest income grew by 15.5% while net profit increased by 18.5%. Our gross NPAs stood at 1.32% compared with 1.26% a year earlier, while our balance sheet size increased by 14.1%

Key Indicator of Hdfc Bank

  • Capital Adequacy Ratio (CAR): 18.8%
  • Net Non-performing Assets (NPAs): 0.40%
  • Dividend per share: ₹. 6.5
  • Net interest margin: 4.1%
  • Return on capital: 16.6%
  • Return on Asset: 1.97%

History of HDFC Bank

In Housing Development Finance Corporation (HDFC) received approval from the RBI to set up a private sector bank
Incorporated in August 1994 as HDFC Bank Limited. They had received a banking license in January 1995 and the first office was opened at Ramon House, Churchgate in Mumbai.

HDFC Bank launched its first IPO in the market lapped up the issue and recorded 55 times oversubscription. Within two months of this IPO issue, the Bank’s shares were quoted at a 300 percent premium.

In 1996-1997, Hdfc has reached 10 billion in balance sheet while crossing senior management has declared a maiden dividend of 8% on equity shares and also launched a new Logo for the bank and they have slight changes in 1998

In 1999 Times bank and hdfc bank was merged and it was the first friendly merger in the banking industry through a share swap deal and while hdfc has introduced real-time NetBanking within 15 days 1000 customers have registered for the services

In the banking industry, Hdfc has launched its first international debit card in India with Visa access by November 1999, enabling account holders to access bank account from anywhere in the world.

In 2000, Hdfc is the 1st Bank to launch Mobile Banking in India for a customer benefit needed to do is send a text to know the account balance, get a mini statement, request a checkbook, or get a detailed account statement.

For Hdfc back 2001 is a good year for them they had Overseas listed in New York Stock Exchange (NYSE) after
an initial public offer of its American Depositary Shares (ADS) of US $172.5 million and also became the first private sector bank to be authorized to collect Income Tax for Central Government.

HDFC Bank got ISO 9001 certification for its Depository and Custodial operations and its backend processing of retail operations and direct banking operations in 2002

In July 2004, HDFC Bank became the first bank in India to offer credit cards in over 100 cities. It initially launched its offering in over 40 cities.

  • These were cards in three categories
    • the HDFC Bank international Silver credit card,
    • international Gold credit card and
    • the Health Plus international credit card.
  • The last one being India’s first credit card with free in-built cashless mediclaim

For international women’s day in 2006 two new product was launched for the welfare and exclusively for women they are Woman’s Advantage Debit Card and the International Women’s Gold Visa Credit Card.

Again Hdfc has made another milestone in India The largest merger was made by Hdfc and Centurion Bank of Punjab for ₹ 9510 crores. through this merger, Hdfc has a national-wide network of 1148 branches.

Hdfc had made all customers save their favorite transactions on Hdfc bank ATMs by launching 40% fastest Atm in 2010 and became the first bank in Asia to deploy customized transactions on ATMs.

In Sustainable Livelihood Initiative in 2013, which helps empower women in rural India by giving them direct access to livelihood finance, reaches out to over 20 lakh households

In 2013-2014, according to Reserve Bank of India data hdfc became the largest issuer of credit cards with over 5.5 million outstanding credit cards at the end of October 2014, and the distinction of winning the Guinness World
Record for organizing the largest blood donation drive on a single day.

Hdfc has launched its sonic branding in 2015 i.e. Musical Logo(MOGO) to be used across multiple touchpoints and Launched PayZapp, India’s first 1-click mobile pay solution, and Launched 10-second personal loan disbursement in the retail lending space.

In 2016 innovative product was launched by Hdfc for their customer by giving a missed call mobile recharge for their prepaid mobile number without having to visit a shop, log onto a website or open an app and ATMs into Loan Dispensing Machines (LDMs), further extending the functionality of the Bank’s ATMs. Customers can get the loan amount credited directly into their account within seconds by completing four simple steps.

Hdfc bank has many innovative products for their customer and brings others to be their customers. In 2017 many products came in front of customer benefit and making them proud of Hdfc customers

  • interactive humanoid IRA was launched under the ‘Project AI
  • first AI-based chatbot for customer service, EVA, can handle millions of customer queries across multiple channels in real time.
  • The Digital Loans Against Securities (Digital LAS) service, the first of its kind, was launched. A 100 per cent online process
  • Launched SmartUp Zones for start-ups, EasyEMI on debit cards and also all-in-one DigiPOS machine

In 2018 Driving rural empowerment Signed MoU with the government to financially empower 2 Lakh rural Indian villages through CSCs e-government services and Hdfc has launched an app that is Next-Gen Mobile banking its main purpose is for customers can view their dashboard in a 360-degree financial snapshot of all assets and liabilities while login with biometric access.

Forbes world’s best bank survey conducted in 2019, Hdfc bank has been ranked No 1 in India. They also hand with Bombay stock exchange to encourage more startups to get listed. They help BSE strengthen the platform by raising equity capital.

In 2020 Hdfc bank has encouraged and assisted start-ups working in the social sector for sustainable development, ₹ 10 crores have been disbursed to start-ups and incubators in India in the first phase. and Millennia is India’s first range of cards to provide exclusively to the lifestyle and aspirations of millennials. The card is a collaboration with MasterCard
and comes in four unique variants for different types of users and provides several benefits and rewards. The Millennia range offers Easy EMI and Prepaid cards to ease the financial restrictions of young consumers.

Through Parivartan, the Bank has empowered rural communities by improving economic and social conditions, focusing on 5 key areas: Education, Skills Training and Livelihood Enhancement, Natural Resources Management, Water and Sanitation, Financial Literacy, and Inclusion.

‘e-Kisaan Dhan’ app. The app gives users access to a bouquet of agricultural and banking services on their mobile and launched a Warehouse Commodity Finance app that will greatly benefit agri processors, traders, and farmers

India’s 74th Independence day, Hdfc Bank launched the Shaurya KGC card for our over 45 lakh Indian armed forces personnel. Key benefits include a life cover of 10 lakhs as against 2 lakh for an average card and a simple document that doesn’t require physical presence.

For the facility of customers to open savings, corporate salary accounts, personal loans, and full KYC all benefit account quickly through an online and secure Video KYC facility was deployed.

In collaboration with Apollo Hospitals, launched The HealthyLife Programme it enables customers to get round-the-clock access to emergency Apollo Doctor at no cost and a host of other benefits on Apollo 24|7 – Apollo’s digital platform.


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