Introduction

HDFC Bank Limited is an Indian banking and financial services company headquartered
in Mumbai, Maharashtra. It is the fifth largest bank in India by assets, incorporated in 1994. It is
the largest private sector bank in India by market capitalization as of 24 February 2014. As on
Jan 2 2014, the market cap value of HDFC was around US$26.88 billion, as compared to Credit
Suisse Group with US$47.63 billion. 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. 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

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.

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 theMasterCard 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 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. 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.

Listings and shareholding

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 theLuxembourg 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.

Shareholders (as of 30-September-2013)

Shareholding

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%). 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.

CSR 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.

Initiative

Objective

Activities

Training for Occupation Skills

Sustainable

Provide livelihood finance to empower rural people, especially women at Credit Counseling

Livelihood

the bottom of the pyramid

Financial Literacy
Market Linkages

Financial

Provide affordable access to basic banking products and services to

Literacy programs in schools

Literacy

excluded and underprivileged sections of the society

Power of Banking workshops

Galli School Project

Grow with Books
Education

Spread the importance of education by providing quality education to

Library programs

children

Engineering scholarships
Child development program
Family based care programs

Skill-based courses
Training

Enhance employability of youth and women in the weaker sections of the Technical & vocational training
society by providing training and capacity development

Basic computer programming

Educational support for children

Rain water harvesting programs

Community

Enable economic growth and sustainable development through

community building programs

Setting up blood storage facilities

Construction of sanitation faciliti

in schools
Child Aid Foundation

Promoting paperless banking

Go Green

Take responsibility for the effects of the operations of the Bank on the
environment and the society.

Multi-channel delivery (Internet,

Mobile, Phone, ATM)
Energy efficiency
Green infrastructure

Awards and recognitions[edit]

2013[edit]
Outlook Money award 2013

Best Bank in Large Banks Category

[32][33]

IBA Innovation Awards

Dun & Bradstreet Polaris Financial Technology Banking Award

2013

Institutional Investor

Forbes Asia

Most Innovative Use of Technology

[33][34]

Best Private Sector Bank Technology Adoption

Best Private Sector Bank Retail

[33][35]

Overall Best Private Sector Bank

Best Bank in Asia

[36]

Mr. Aditya Puri - Best CEO

Fab 50 Companies List for the 7th year

[33][37]

Best Private Sector Bank: Large

Sunday Standard Best Banker Awards

Safest Bank: Large

[33][38]

Mr. Aditya Puri: Top Achiever

Asia Money 2013

Best Domestic Bank in India

[33][39]

Mr. Aditya Puri: Best Executive in India

MACCIA Awards 2013

Best in Financial Services: Bank Category

[40]

UTI Mutual Fund CNBC TV 18 Financial Advisory Awards 2012

Best Performing Bank - Private

[33][41]

Dun & Bradstreet Corporate Awards 2012

Best in Banking sector

[42]

NDTV Profit Business Leadership Awards 2012

Winner in the banking category

[33][43]

NASSCOM CNBCTV18 IT Innovation Award

Best IT Driven Innovation in Banking

(COMMERCIAL)

[33][44]

The National Quality Excellence Awards

Best Customer Service Result

[45]

Brand Trust Report 2013

Most Trusted Finance Brand

[46]

Best Bank: New Private sector

FE Best Bank Awards

Best in Strength & Soundness

[33][47]

Mr. Aditya Puri: Best Banker

Skoch Financial Inclusion Awards 2013

Organization of the Year

[33][48]

Guinness World Record

For The Annual Blood Donation Drive

[49]

2012[edit]
DSCI Information Technology Award 2012

Businessworld Awards for Banking Excellence 2012

HT-Mars Customer satisfaction survey

CSO Forum Information Technology Award 2012

Economic Times

Security in Bank (2nd time in a row)

[33][50]

Security Leader of the Year (Banking)

Most tech-friendly Bank

[51]

Deal of the year (Rupee Bonds)

Winner: Bank and Credit Card customer satisfaction

[33][52]

Survey

Best Organization for Information Security Practice

[53]

(2nd time in a row)

ET Awards for Corporate Excellence - Company of the

[33][54]

Year 2012

CNBC TV18's India Best Banks and Financial Institutions Awards Best Private Sector Bank

[33][55]

2012

Mint-Aon Hewitt study on India's Best Managed Boards 2012

One of India's six best managed Boards 2012

[33][56]

Forbes Asia

Fab 50 Companies - Winning for the 6th year

[33][57]

Best Online Bank

Best Use of Business Intelligence
IBA Banking Technology Awards 2011

Best Customer Relationship Initiative

[58]

Best Risk Management & Security Initiative

Best Use of Mobility Technology in Banking

Overall Best Bank

Dun & Bradstreet Banking Awards 2012

Best Private Sector Bank

[33][59]

Asset Quality - Private Sector

Retail Banking -Private Sector

IDRBT Banking Technology Excellence Awards 2011-12

Best Bank in 'IT for Operational Effectiveness'

[33][60]

category

Asia Money 2012

Best Domestic Bank in India

[61][62]

India's Top 500 Companies -Dun & Bradstreet Corporate Awards

Best Bank in India

[63][64]

Finance Asia

UTI Mutual Fund CNBC TV 18 Financial Advisor Awards 2011

Best Managed Company

[65]

Best CEO - Mr. Aditya Puri

Best Performing Bank Private

[66]

Asian Banker International Excellence in Retail Financial

Services Awards 2012

Best Retail Bank in India

Best Bancassurance

[67]

Best Risk Management

5th Loyalty Summit award

Customer and Brand Loyalty

[68][69]

Brand Trust Report 2012

Most Trusted Finance Brand

[70]

Skoch Foundation Award for the SHG/JLG Linkage

Skoch Financial Inclusion Award for 2012

ICAI Awards 2011

Excellence in Financial Reporting

Controversies
Money

[71][72]

Programme

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 banks 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

[73][74]

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.