This blog will focus on the journey of HDFC Bank, the largest bank in India. The bank operates in three main business segments: Retail Banking, Corporate Banking, and Treasury.
Journey in the first decade (FY 1994 to FY 2004):
HDFC Bank, established in August 1994 by Housing Development Finance Corporation (HDFC), saw Aditya Puri take on the role of Managing Director and CEO in September of the same year. Puri played a crucial part in the bank's growth trajectory. The bank obtained its banking license from the RBI in January 1995, followed by its IPO listing on BSE and NSE in the same year. In 1999, HDFC Bank introduced its first international Debit Card in India in collaboration with Visa International and initiated its digital journey with the launch of online real-time Net Banking. The same year, Times Bank merged with HDFC Bank. Subsequently, in 2000, HDFC Bank introduced Mobile Banking services in India. The year 2001 marked the bank's listing on the New York Stock Exchange (NYSE) and its authorization as the first private bank to collect income tax. In 2002, HDFC Bank received ISO 9001 certification for its depository and custodial services. By the end of its first decade, the bank became the first to offer Credit Cards in over 100 cities and reached 1 million users.
Journey in the second decade (FY 2005 to FY 2014):
In 2006, HDFC Bank introduced two new cards specifically for women on the eve of International Women’s Day. The bank expanded globally by opening its first overseas commercial branch in Bahrain in 2008. The same year, Centurion Bank of Punjab merged with HDFC Bank, marking one of the biggest mergers in the Indian Banking Industry. In 2010, the bank launched a 40% faster ATM. By 2011, HDFC Bank took significant measures to grow its customer base and became the leading provider of Auto loans, Personal Loans, and Credit Cards.
In 2012, the bank released its Mobile Banking App in Hindi and introduced premium Credit Cards for doctors. The same year, HDFC Bank initiated a nationwide sports program called Josh Unlimited for its employees. In 2013, the Bank’s Sustainable Livelihood Initiative (SLI) reached a milestone by impacting 20 lakh households. Sustainability became a core value for the bank. In 2014, HDFC Bank set a new Guinness World Record for organizing the largest single-day blood donation drive. By the end of the second decade of its journey, the bank emerged as the market leader in issuing Credit Cards with over 55 Lakh Cards.
Journey in the third decade (FY 2015 to FY 2024):
HDFC Bank introduced its sonic branding, known as Musical Logo (MOGO), in 2015, which was implemented across various touchpoints. Additionally, the bank launched PayZapp, India's first 1-click mobile payment solution, and introduced 10-second personal loan disbursement in the retail lending sector. In 2016, HDFC Bank introduced new services such as Missed Call Mobile Recharge for prepaid mobiles, transformed ATMs into Loan Dispensing Machines (LDMs), and launched the SmartUp program for startups. The following year, in 2017-18, the bank introduced IRA (Interactive Robotic Assistant), becoming the first bank in India to introduce a humanoid for customer service. It also launched 'EVA chatbot', India's first AI-based chatbot, to enhance customer service. Furthermore, the bank established SmartUp Zones for startups, introduced EasyEMI on Debit Cards, an all-in-one DigiPOS machine, and launched the Next-gen Mobile Banking App. HDFC Bank also took initiatives to empower rural areas and signed an MoU with the government to financially empower 2 lakh rural Indian villages through CSC.
Under the leadership of Aditya Puri, HDFC Bank was recognized as the number one bank in India by customers in the Forbes World's Best Banks Survey in 2019. The bank collaborated with the Bombay Stock Exchange to support the startup platform. In addition, HDFC Bank celebrated the opening of its 5,000th branch, marking the beginning of its 25th year. It was also ranked as India's most valuable brand for the seventh consecutive year in the BrandZ Report of 2020. The bank introduced the HDFC Bank Millennia range of cards and bid farewell to Aditya Puri upon his retirement in September 2020. Since its establishment, the bank's assets have grown from Rs 3,394 crore in 1995 to over Rs 16 lakh crore in September 2020. Total deposits increased from Rs 642 crore to Rs 12.29 lakh crore, and advances grew from Rs 98 crore to Rs 10.38 lakh crore during his tenure.
Sashidhar Jagdishan, the new MD & CEO, assumed his position amidst the challenging times of the Covid-19 pandemic. Under his guidance, HDFC Bank introduced the groundbreaking KGC-Shaurya card exclusively for the armed forces. Additionally, the bank launched a contactless customer onboarding process through video KYC and deployed mobile ATMs to ensure uninterrupted services during the lockdown. In 2021, the bank initiated Project 'Future Ready' to further enhance its capabilities.
In 2022, HDFC Bank unveiled SmartHub Vyapar, a comprehensive merchant solution app catering to all banking and business needs. The following year, they introduced PayZapp 2.0, an upgraded payments app offering customers a seamless and secure user experience. The announcement of the merger between HDFC Bank and HDFC Ltd., which created one of the world's most esteemed banks, was made in 2022. As part of the merger, HDFC Ltd. shares were delisted, and shareholders received 42 shares of HDFC Bank for every 25 shares of HDFC Ltd. The merger officially took effect on July 1, 2023, transforming HDFC Bank into a diversified financial services conglomerate.
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Data Source
- Company's website, Annual Report, Investors Presentation, etc.
- Moneycontrol.com
Disclaimer
The content or analysis presented in the Blog is exclusively intended for educational purposes. It is important to note that this should not be considered as a suggestion for investing in stocks or as legal or medical advice. It is highly recommended to seek guidance from an expert before making any decisions.