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HDFC Bank Limited

H D F C B a n k o g
L .s v
o g

"We understand your world"

Type Public company
BSE: 500180
NSE: HDFCBANK
Traded as NYSE: HDB
BSE SENSEX Constituent
CNX Nifty Constituent
Industry Banking, Financial services
Founded August 1994
Headquarters Mumbai, Maharashtra, India
Area served Worldwide
Key people Aditya Puri (MD)[1]
Investment Banking
Investment Management
Wealth Management
Private Banking
Corporate Banking
Products
Private Equity
Finance and Insurance
Consumer Banking
Mortgages
Credit Cards[2]
Revenue US$ 6.5 billion (March 2013)[1][3]
Operating income US$ 1.87 billion (March 2013)[3][4]
Profit US$ 1.1 billion (March 2013)[3][4]
Total assets US$ 66.7 billion (May 2013)[3]
Total equity US$ 08.6 billion (March 2013)[5]
Number of employees 69,065 (March 2013)[1][6]
 Website HDFCBank.com
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.[1][7] It is the largest private sector bank[8] 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.[9] According to the Brand Trust Report 2014, HDFC was ranked 32nd among
India's most trusted brands.[10] HDFC was ranked 45th on the list of top 50 Banks in the
world in terms of their market capitalization.[11]
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]

Contents
[hide]
0 1 Products
1 1.1 NRI banking
2 1.2 SME banking
3 1.3 Wholesale banking
4 2 Services
5 2.1 Wholesale banking services
6 2.2 Retail banking services
7 2.3 Treasury
8 3 Operations
9 4 Listings and shareholding
10 5 Employees
11 6 CSR Activities
12 7 Awards and recognitions
13 7.1 2013
14 7.2 2012
15 8 Controversies
16 9 See also
17 10 References
18 11 External links

Products[edit]
HDFC Bank offers the following core products:
NRI banking[edit]
Under NRI Banking, HDFC offers:[12]
19 Accounts & Deposits
20 Money Transfer
21 Investments & Insurance
22 Research Reports
23 Payment Services
SME banking[edit]
Under SME Banking, HDFC offers:[13]
24 Accounts & Deposits
25 Business Financing
26 Trade Services
27 Payments & Collections
28 Cards
29 ATM
Wholesale banking[edit]
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.[14]

Services[edit]
Wholesale banking services[edit]
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.[15]

An HDFC Bank Branch

Retail banking services[edit]
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.[16][17] 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.[18] By March 2012, the bank had a
total card base (debit and credit cards) of over 19.7 million.[15] 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.[2][19]
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.[15]
Treasury[edit]
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.[1][15]

Operations[edit]
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.[20]
The Bank has overseas branch operations in Bahrain and Hong Kong.[2][21]
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 Banks 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.[22]
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.[23]

Listings and shareholding[edit]

The equity shares of HDFC Bank are listed on the Bombay Stock Exchange,[24] where it
is a constituent of the BSE SENSEX index,[25] and the National Stock Exchange of
India,[26] where it is a constituent of the CNX Nifty.[27] 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.[28]
Shareholders (as of 30-September-2013) Shareholding[28]
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[edit]
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%.[29] During the financial year 2012-13, the company incurred INR 42
billion on employee benefit expenses
[73]

Controversies[edit]
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.[74][75][76] 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 banks code of conduct and ethical standards by the officials involved.
[77] 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.
[78][79]
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.[80] 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.[79]
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.
[81]