HDFC Bank Limited is an Indian banking and financial services company headquartered in Mumbai, Maharashtra. Incorporated in 1994, it is the fifth largest bank in India as measured by assets. It is the largest private sector bank in India by market capitalization as of February 2014. The bank was promoted by the Housing Development Finance Corporation, a premier housing finance company (set up in 1977) of India. According to the Brand Trust Report 2014, HDFC was ranked 32nd among India's most trusted brands. HDFC was ranked 45th on the list of top 50 Banks in the world in terms of their market captialization.
As of 31 March 2013, the bank had assets of INR 4.08 trillion. For the fiscal year 2012-13, the bank has reported net profit of INR 69 billion, up 31% from the previous fiscal year. Its customer base stood at 28.7 million customers on 31 March 2013.
Products
HDFC Bank offers the following core products:
NRI banking
Under NRI Banking, HDFC offers:
- Accounts & Deposits
- Money Transfer
- Investments & Insurance
- Research Reports
- Payment Services
SME banking
Under SME Banking, HDFC offers:
- Accounts & Deposits
- Business Financing
- Trade Services
- Payments & Collections
- Cards
- ATM
Wholesale banking
HDFC offers Wholesale Banking for Corporates and Financial Institutions & Trusts. The Bank also provides services such as Investment Banking and other services in the Government sector.
Services
Wholesale banking services
HDFC Bank provides a range of commercial and transactional banking services, including working capital finance, trade services, transactional services, cash management, etc. to large, small and mid-sized corporates and agriculture-based businesses in India. The bank is also a leading provider of these services to its corporate customers, mutual funds, stock exchange members and banks.
Retail banking services
HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (Visa Electron). The bank also issues the MasterCard Maestro debit card. The Bank launched its credit card business in late 2001. By the end of June 2013, it had a credit card base of 5.94 million. By March 2012, the bank had a total card base (debit and credit cards) of over 19.7 million. The Bank is also one of the leading players in the "merchant acquiring" business with over 240,000 point-of-sale (POS) terminals for debit / credit cards acceptance at merchant establishments. The Bank is positioned in various net based B2C opportunities including a wide range of Internet banking services for Fixed Deposits, Loans, Bill Payments, etc.
Treasury
The bank has three main product areas - Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. These services 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.
Operations
As of 30 September 2013, HDFC Bank has 3,251 branches and 11,177 ATMs, in 2,022 cities in India, and all branches of the bank are linked on an online real-time basis. The Bank has overseas branch operations in Bahrain and Hong Kong.
HDFC Bank has two subsidiaries:
HDB Financial Services Limited ('HDBFS'): HDBFS is engaged in retail asset financing. It is a non-deposit taking non-bank finance company (NBFC). Apart from lending to individuals, the company grants loans to micro, small and medium business enterprises. It also runs call centers for collection services to the HDFC Bank's retail loan products. HDFC Bank holds 97.4% shares in HDBFS. As of March 31, 2013, HDBFS has 230 branches in 184 cities. During the FY 2012-13, HDBFS had turnover of INR 9.6 billion and profit after tax of INR 1 billion. It has 6,404 employees as of 31 March 2013.
HDFC Securities Limited ('HSL'): HSL is engaged in stock broking. As of March 31, 2013, HDBFS has 194 branches across 150 cities. HDFC Bank has 62.1% shareholding in HSL. During the FY 2012-13, HSL had turnover of INR 2.3 billion and profit after tax of INR 668 million. During the year, the Company received the "Best e-Brokerage Award - 2012" in the Outlook Money Awards in the runner up category.
The equity shares of HDFC Bank are listed on the Bombay Stock Exchange, where it is a constituent of the BSE SENSEX index, and the National Stock Exchange of India, where it is a constituent of the CNX Nifty. Its American Depositary Shares are listed on the NYSE. Its Global Depository Receipts (GDRs) are listed on the Luxembourg Stock Exchange where 2 GDRs represent one underlying equity share of HDFC Bank.
Shareholding: On 30 September 2013, the promoter group Housing Development Finance Corporation held 22.72% of its equity shares. 33.61% of the shares were owned by the Foreign Institutional Investors (FII). Around 428,000 individual public shareholders own approx. 8.43% of its shares. The remaining 35.24% shares are owned by others.
Employees
As of 31 March 2013, the company has 69,065 employees, out of which 12,295 are women (17.80%). In June 2013, the company reported an annual attrition rate of approx. 20%. During the financial year 2012-13, the company incurred INR 42 billion on employee benefit expenses.
ArrayCSR Activities
HDFC Bank has taken several initiatives as part of its corporate social responsibility. It has collaborated with several NGOs to assist in its activities.
ArrayAwards and recognitions
2013
2012
ArrayControversies
Money laundering allegations
On 14 March 2013 an online magazine named Cobrapost.com released video footage from Operation Red Spider showing high-ranking officials and some employees of HDFC bank and two other leading banks, willing to turn black money into white, a violation of Money Laundering Control Act.
Following the release of the footage, the Government of India and RBI ordered an inquiry. The banks under question also conducted investigations of their own. HDFC appointed Deloitte Touche Tohmatsu to conduct a forensic inquiry. The bank also appointed Amarchand & Mangaldas & Suresh A Shroff & Co (AMSS), a law firm based in India, to investigate in association with the internal departmental inquiry, the breaches in the bank's code of conduct and ethical standards by the officials involved. On March 16, 2013, HDFC released a statement announcing the suspension of over 20 employees involved in the videotape to ensure fair and unbiased investigation process.
The RBI forensic investigation did not reveal any prima facie evidence for the allegations of money laundering. Deputy Governor at RBI, K.C. Chakrabarty, said in an interview that no transactions had taken place. The Executive Director of HDFC, Paresh Sukthankar, also confirmed that their investigations revealed the same on April 24, 2013, "The issue is being reviewed and investigated from multiple quarters. Clearly, all the investigations have shown that there have been no instances of transactions actually taking place. Our belief is that the existing processes seem to have worked in not allowing these transactions to happen."
However, RBI investigations revealed violations of KYC (Know Your Customer) norms, for which the three banks were imposed penalty, with Rs. 4.5 crores imposed on HDFC.
See also
- Bank
- Private-sector banks in India
- List of banks in India
- List of companies of India
References
External links
- Official website
- Jobs at HDFC Bank
- HDFC Bank on Facebook
- HDFC Bank at Times of India
- HDFC Bank at Bombay Stock Exchange
- HDFC Bank at National Stock Exchange of India
- HDFC RED - Associated Company Website
- Samir Bhatia#cite ref-1
Interesting Informations
Looking products related to this topic, find out at Amazon.com
Source of the article : here
EmoticonEmoticon