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==Awards and recognitions==
==Awards and recognitions==

* HDFC Bank was included in the Forbes Asia's Fab 50 list for 2013. It was the 7th time that it was included in this list.<ref>{{cite web |url=http://www.forbes.com/sites/scottdecarlo/2013/08/28/2013-asias-fab-50/ |title=2013 Asia's Fab 50 |publisher=Forbes |date=2 September 2013 |accessdate=29 November 2013}}</ref><ref>{{cite web |url=http://www.hdfcbank.com/htdocs/aboutus/awards/HDFC-Forbes-Asia-2013.html |title=HDFC Bank in Forbes Asia's 'Fab 50' List for 7th year |publisher=HDFC Bank |date=28 August 2013 |accessdate=29 November 2013}}</ref>
===2013===
* In 2012, it received the Best Domestic Bank in India award from Asiamoney.<ref>{{cite web |url=http://www.hdfcbank.com/htdocs/aboutus/awards/asiamoney2013.html |title=Asiamoney - Best Domestic Bank and Best Executive Awards –India |publisher=HDFC Bank |date=15 September 2013|accessdate=29 November 2013}}</ref><ref>{{cite news |url=http://www.financialexpress.com/news/asiamoney-names-hdfc-best-domestic-bank/963234 |title=Asiamoney names HDFC best domestic bank |newspaper=Financial Express |date=18 June 2012 |accessdate=29 November 2013}}</ref>

* In 2011, it won 7 awards in the IBA Banking Technology Awards.<ref>{{cite web |url=http://www.hdfcbank.com/htdocs/aboutus/awards/iba_banking_awards.htm |title=UTI Mutual Fund CNBC TV18 Financial Advisory Awards 2011 Best Performing Bank - Private |publisher=HDFC Bank |accessdate=29 November 2013}}</ref>
{| class="wikitable"
* HDFC Bank was awarded the Gold Shield for the second year in a row for Excellence in Financial Reporting in 2011 under the Private Banks (including Co-operative banks) category.<ref>{{cite web |url=http://www.hdfcbank.com/aboutus/awards/ICAI-Awards2011.htm |title=ICAI Awards for Excellence in Financial Reporting FY11 |publisher=HDFC Bank |accessdate=29 November 2013}}</ref><ref>{{cite web |url=http://pib.nic.in/newsite/erelease.aspx?relid=68886 |title=ICAI Awards for Excellence in Financial Reporting |publisher=Press Information Bureau, Government of India |date=5 January 2011 |accessdate=29 November 2013}}</ref>
|-
| Outlook Money Awards 2013 || Best Bank in Large Banks Category || <ref>{{cite web|title=The Outlook MOney Awards 2013|url=http://money.outlookindia.com/olmawards.aspx|publisher=Outlook|accessdate=3 January 2014}}</ref> <ref name="HDFC Awards">{{cite web|title=Awards and Achievements|url=http://www.hdfcbank.com/aboutus/awards/default.htm|publisher=HDFC Bank|accessdate=3 January 2014}}</ref>
|-
| IBA Innovation Awards || Most Innovative Use of Technology || <ref>{{cite web|title=IBA Awards for Innovation in Banking 2013|url=http://www.iba.org.in/Documents/IB_Dec_pag_18.pdf|publisher=IBA|accessdate=3 January 2014}}</ref> <ref name="HDFC Awards" />
|-
| Dun & Bradstreet Polaris Financial Technology Banking Award 2013 || *Best Private Sector Bank Technology Adoption <br> <br> *Best Private Sector Bank Retail <br><br> *Overall Best Private Sector Bank || Example<ref>{{cite news|title=The Sunday Standard Best Bankers’ Awards 2013 winners list|url=http://www.newindianexpress.com/thesundaystandard/The-Sunday-Standard-Best-Bankers%E2%80%99-Awards-2013-winners-list/2013/09/08/article1775960.ece|accessdate=3 January 2014|newspaper=The Indian Express|date=8 September 2013}}</ref><ref name="HDFC Awards" />
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==Controversies==
==Controversies==

Revision as of 12:30, 3 January 2014

HDFC Bank Limited
Company typePublic
BSE: 500180
NSE: HDFCBANK
NYSE: HDB
BSE SENSEX Constituent
CNX Nifty Constituent
IndustryBanking, Financial services
FoundedAugust 1994
HeadquartersMumbai, Maharashtra, India
Area served
Worldwide
Key people
Aditya Puri (MD)[1]
ProductsCredit cards, consumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, private equity, wealth management[2]
RevenueIncrease US$ 6.5 billion (March 2013)[3][1]
Increase US$ 1.87 billion (March 2013)[3] [4]
Increase US$ 1.1 billion (March 2013)[3] [4]
Total assetsIncrease US$ 66.7 billion (May 2013)[3]
Total equityIncrease US$ 8.6 billion (March 2013)[5]
Number of employees
69,065 (March 2013)[6][1]
WebsiteHDFCBank.com

HDFC Bank Limited is an Indian financial services company based in Mumbai, Maharashtra. It was incorporated in 1994.[1][7] HDFC Bank is the fifth largest bank in India by assets. It is also the largest bank by market capitalization as of 1 November 2012. The market cap value of HDFC is of the range of USD 26.88B, which is more than half of that of Credit Suisse Group with USD 47.63B as on Jan 2, 2014. [8] [9] The bank was promoted by the Housing Development Finance Corporation, a premier housing finance company (set up in 1977) of India.[10]

As of 31 March 2013, the bank had assets of INR 4.08 trillion.[2] For the fiscal year 2012-13, the bank has reported net profit of INR 69 billion, up 31% from the previous fiscal year.[2] Its customer base stood at 28.7 million customers on 31 March 2013.[2]

History

HDFC Bank Limited was incorporated in August 1994. It was promoted 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.[11] The Bank started operations as a scheduled commercial bank in January 1995 under the RBI's liberalization policies.[12]

On 26 February 2000, Times Bank Limited owned by The Times Group (Bennett, Coleman & Co.) was merged with HDFC Bank Ltd. 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.[12][13]

On 23 May 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.[11][14]

Products

HDFC Bank offers the following four core products:

Personal Banking

Under Personal Banking, HDFC offers[15]:

  • Accounts & Deposits
  • Loans
  • Cards
  • Demat
  • Investments
  • Insurance
  • Forex
  • Premium Banking
  • Private Banking

NRI Banking

Under NRI Banking, HDFC offers[16] :

  • Accounts & Deposits
  • Money Transfer
  • Investments & Insurance
  • Research Reports
  • Loans
  • Premium Banking
  • Payment Services

SME Banking

Under SME Banking, HDFC offers[17] :

  • Accounts & Deposits
  • Business Financing
  • Trade Services
  • Payments & Collections
  • Cards

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.[18]

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.[19]

An HDFC Bank Branch

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.[20][21] 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.[22] By March 2012, the bank had a total card base (debit and credit cards) of over 19.7 million.[19] 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.[23][2] 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.[19]

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.[19][1]

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.[24] The Bank has overseas branch operations in Bahrain and Hong Kong.[2][11]

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.[2] It has 6,404 employees as of 31 March 2013.[25]

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.[2] During the year, the Company received the “Best e-Brokerage Award - 2012” in the Outlook Money Awards in the runner up category.[26]

Listings and shareholding

The equity shares of HDFC Bank are listed on the Bombay Stock Exchange,[27] where it is a constituent of the BSE SENSEX index,[28] and the National Stock Exchange of India,[29] where it is a constituent of the CNX Nifty.[30] Its American Depositary Shares are listed on the NYSE.[2] Its Global Depository Receipts (GDRs) are listed on the Luxembourg Stock Exchange where 2 GDRs represent one underlying equity share of HDFC Bank.[2]

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.[31]

Shareholders (as of 30-September-2013) Shareholding[31]
Promoter Group (HDFC) 22.72%
Foreign Institutional Investors (FII) 33.61%
Individual shareholders 08.43%
Bodies Corporate 08.01%
Insurance companies 05.38%
Mutual Funds/UTI 04.34%
NRI/OCB/Others 00.40%
Financial Institutions/Banks 00.09%
ADS/GDRs 17.02%
Total 100.0%

Employees

As of 31 March 2013, the company has 69,065 employees, out of which 12,295 are women (17.80%).[6] In June 2013, the company reported an annual attrition rate of approx. 20%.[32] During the financial year 2012-13, the company incurred INR 42 billion on employee benefit expenses.[2]

Awards and recognitions

2013

Outlook Money Awards 2013 Best Bank in Large Banks Category [33] [34]
IBA Innovation Awards Most Innovative Use of Technology [35] [34]
Dun & Bradstreet Polaris Financial Technology Banking Award 2013 *Best Private Sector Bank Technology Adoption

*Best Private Sector Bank Retail

*Overall Best Private Sector Bank		 Example[36][34]
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Controversies

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 have ordered an inquiry.[37][38][39] 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. [40] 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.[41] [42]

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.[43] 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.” [42]

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.[44]

See also

References

  1. ^ a b c d e "HDFC Bank on the Forbes Asia's Fab 50 Companies List". Forbes. 28 August 2013. Retrieved 29 November 2013.
  2. ^ a b c d e f g h i j k "Annual Report 2012-13" (PDF). HDFC Bank. Retrieved 28 November 2013.
  3. ^ a b c d "2011 HDFC Bank Limited". Yahoo.
  4. ^ a b "Annual Report 2012-13" (PDF). HDFC Bank. Retrieved 27 December 2013.
  5. ^ "HDFC Shareholders Equity (Quarterly)". YCharts. Retrieved 27 December 2013.
  6. ^ a b "Business Responsibility Report 2012-13" (PDF). HDFC Bank. Retrieved 27 November 2013.
  7. ^ "About us". HDFC Bank. Retrieved 29 November 2013.
  8. ^ "HDFC Bank Market Cap". YCharts. Retrieved 3 January 2014.
  9. ^ "Credit Suisse Group Market Cap". YCharts. Retrieved 3 January 2014.
  10. ^ "Promoter - HDFC". HDFC Bank. Retrieved 30 November 2013.
  11. ^ a b c "HDFC Bank's profile". NDTV Profit. Retrieved 30 November 2013.
  12. ^ a b "HDFC Bank Limited - Profile". HDFC Bank. Retrieved 30 November 2013.
  13. ^ "Shareholders question HDFC Bank pref offer". Indian Express. 29 December 1999. Retrieved 29 November 2013.
  14. ^ "RBI approves CBoP – HDFC Bank Merger". RBI. 20 May 2008. Retrieved 30 November 2013.
  15. ^ "Personal Banking". HDFC Bank. Retrieved 3 January 2014.
  16. ^ "NRI Banking". HDFC Bank. Retrieved 3 January 2014.
  17. ^ "SME Banking". HDFC Bank. Retrieved 3 January 2014.
  18. ^ "Wholesale". HDFC Bank. Retrieved 3 January 2014.
  19. ^ a b c d "Businesses". HDFC Bank. Retrieved 30 November 2013.
  20. ^ "HDFC Bank sets up 100 EDCs, debit card base touches 1.3 lakh". Indian Express. 9 May 2000. Retrieved 30 November 2013.
  21. ^ "HDFC Bank unveils debit card, to set up 100 ECD terminals". Indian Express. 17 November 1999. Retrieved 30 November 2013.
  22. ^ "HDFC Bank's credit card base shrinks". Business Standard. 11 September 2013. Retrieved 1 December 2013.
  23. ^ "Banks take steps to make credit card payments more safe". The Hindu. 1 March 2013. Retrieved 1 December 2013.
  24. ^ "About us - Profile". HDFC Bank. Retrieved 29 November 2013.
  25. ^ "HDB Financial Services Limited - Annual Report for FY 2012-13" (PDF). HDFC Bank. Retrieved 29 November 2013.
  26. ^ "HDFC Securities Limited - Annual Report for FY 2012-13" (PDF). HDFC Bank. Retrieved 29 November 2013.
  27. ^ "HDFC Bank Limited". BSEindia.com. Retrieved 30 November 2013.
  28. ^ "Scripwise Weightages in S&P BSE SENSEX". BSE India. Retrieved 30 November 2013.
  29. ^ "HDFC Bank Limited". NSE India. Retrieved 30 November 2013.
  30. ^ "Download List of CNX Nifty stocks (.csv)". NSE India. Retrieved 30 November 2013.
  31. ^ a b "Shareholding pattern as on 30-Sep-2013" (PDF). HDFC Bank. Retrieved 29 November 2013.
  32. ^ "Worried over 20% attrition levels: HDFC Bank". Times of India. 30 June 2013. Retrieved 29 November 2013.
  33. ^ "The Outlook MOney Awards 2013". Outlook. Retrieved 3 January 2014.
  34. ^ a b c "Awards and Achievements". HDFC Bank. Retrieved 3 January 2014.
  35. ^ "IBA Awards for Innovation in Banking 2013" (PDF). IBA. Retrieved 3 January 2014.
  36. ^ "The Sunday Standard Best Bankers' Awards 2013 winners list". The Indian Express. 8 September 2013. Retrieved 3 January 2014.
  37. ^ "Money laundering case: ICICI bank suspends 18 employees". Zee News. 15 March 2013. Retrieved 30 November 2013.
  38. ^ "Probes Begin as Top Indian Banks Are Embroiled in Sting Operation". Wharton School of the University of Pennsylvania. Retrieved 30 November 2013.
  39. ^ Ronamai, Raymond (15 March 2013). "India's Private Banks Under Scanner: Is RBI to be Blamed for Money Laundering?". International Business Times. Retrieved 30 November 2013.
  40. ^ "HDFC Bank appoints Deloitte Touche Tohmatsu India to probe money laundering allegations". The Economic Times. 16 March 2013. Retrieved 27 December 2013.
  41. ^ "Money laundering case: HDFC Bank suspends 20 employees pending investigation". The Economic Times. 16 March 2013. Retrieved 27 December 2013.
  42. ^ a b "Money laundering: HDFC Bank says probe into Cobrapost expose yet to find irregularities". Business Standard. 24 April 2013. Retrieved 27 December 2013.
  43. ^ "Cobrapost allegations: No money laundering involved, says RBI". Profit NDTV. 21 March 2013. Retrieved 27 December 2013.
  44. ^ "RBI penalties sting 3 banks in Cobrapost expose". DNA India. 10 June 2013. Retrieved 27 December 2013.
  • Official website
  • HDFC Bank IFSC Codes
  • 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
  • Business data for HDFC Bank:

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