Tracing the Roots: A Look into the History of HDFC Bank

HDFC Bank, India’s largest private sector bank, has been a leader in the banking industry for many years.

HDFC Bank: A Pioneer in India’s Banking Industry

The Housing Development Finance Corporation, also known as HDFC, made history as one of the first financial institutions in India to receive an “in principle” approval from the Reserve Bank of India (RBI) to establish a private sector bank. This landmark moment was part of RBI’s policy to liberalize the Indian banking industry in 1994. In August of 1994, HDFC Bank was incorporated under the name HDFC Bank Limited and headquartered in Mumbai, India. The bank officially started operating as a Scheduled Commercial Bank in January of 1995. As of June 30, 2022, HDFC Bank boasts a vast nationwide distribution network, including 6,499 branches and 18,868 ATM’s spread across 3,226 cities and towns in India.

HDFC Bank’s Strength and Resilience in the Post-Pandemic World

HDFC Bank, India’s largest private sector bank, has been a leader in the banking industry for many years. With a balance sheet size that is unmatched by its competitors, HDFC Bank has been able to maintain its position of strength even in the face of the COVID-19 pandemic. The bank’s sound fundamentals, extensive distribution network, and agile operations have enabled it to smoothly transition into the new normal of the post-pandemic world.

Enhancing Disability-Inclusive Infrastructure and Services

HDFC Bank serves over 7.1 crore customers through its 6,342 branches and 18,130 ATMs/CDMs. The bank is constantly innovating its products and processes to cater to the ever-evolving needs of its customers. In addition, HDFC Bank is working to enhance its disability-inclusive infrastructure and services. All its ATMs are equipped with a voice-guided system and a Braille keypad for the visually challenged, and the bank is making efforts to increase the number of ATMs with ramps to make them accessible to customers who use wheelchairs.

Building a Culture of Inclusiveness and Growth

The bank is committed to building a culture of inclusiveness, diversity, growth, progression, and well-being for its employees. Over 1.4 lakh employees from diverse socioeconomic and educational backgrounds work at HDFC Bank, allowing it to provide highly personalized experiences to its customers.

A Trusted Partner for Financial Needs

India is one of the fastest-growing major economies in the world, and as one of the largest private sector banks in the country, HDFC Bank is well-positioned to take advantage of this opportunity. The bank is focused on executing its ten-pillar strategy across various products and segments, which will drive its consistent performance and help it create, catalyze, and capture the next wave of growth. HDFC Bank’s commitment to innovation, inclusiveness, and growth makes it a leader in the banking industry and a partner that customers can trust for all their financial needs.

Journey: Major milestones

1994: Housing Development Finance Corporation (HDFC) received an in-principle approval from the RBI to set up a private sector bank Incorporated in August 1994 as HDFC Bank Limited

1995: HDFC Bank launched its first IPO of Rs. 500 million (50,000,000 equity shares at Rs. 10 each at par). Despite much skepticism, the market lapped up the issue and we recorded 55 times oversubscription. Within two months of this IPO issue, the Bank’s shares were quoted at 300 per cent premium.

1997: Maiden dividend announced

1997-98: New logo launched.

1999: Launched first international Debit Card in India in association with Visa International Began its digital journey by launching online real-time NetBanking. First ever mega merger in Indian banking industry – Times Bank merged with HDFC Bank

2000: A Bank with many firsts First Bank to launch Mobile Banking in India Launched first SMS–based Mobile Banking

2001: Overseas listing Listed on New York Stock Exchange (NYSE) Became the first private bank authorised to collect income tax

2002: ISO 9001 certification for depository and custodial services

2003-04: First bank in India to offer Credit Card in 100+ cities Touched 10 Lakh users

2006: Two new cards launched exclusively for women on International Women’s Day

2008: Launched first overseas commercial branch in Bahrain Merged with Centurion Bank of Punjab in one of the largest mergers in the Indian banking industry

2010: Launched 40% faster ATMs – first of its kind in Asia

2011: Growing market leadership Expanded customer base to become market leaders in Auto Loans, Personal Loans and Credit Cards

2012: Launched MobileBanking App in Hindi Launched premium Credit Cards for doctors Launched a nation-wide sports initiative – Josh Unlimited, for employees

2013: The Bank’s Sustainable Livelihood Initiative (SLI) crosses a milestone, impacting 20 Lakh households

2014: Sustainability established as a core value of the Bank Created a new Guinness World Record for organising the largest single-day blood donation drive Became market leader in issuing Credit Cards in 2013-14 with 55 Lakh Cards

2015: Launched its sonic branding i.e., Musical Logo (MOGO) to be used across multiple touch points Launched PayZapp, India’s first 1-click mobile-pay solution, Launched 10-second personal loan disbursement in the retail lending space Concurrent QIP issue and Follow-on offering Rs. 9,723 Cr

2016: Launched Missed Call mobile recharge for prepaid mobiles ATMs turned to LDMs (Loan Dispensing Machines) Launched SmartUp programme for start-ups

2017: Introduced AI Launched IRA (Interactive Robotic Assistant) and became the first bank in India to introduce a humanoid for customer service, Introduced EVA chatbot – India’s first AI-based chatbot to provide customer service Launched SmartUp Zones for start-ups, Launched EasyEMI on Debit Cards, Launched an all-in-one, DigiPOS machine

2018: Next-gen MobileBanking App launched Driving rural empowerment Signed MoU with government to financially empower 2 Lakh rural Indian villages through CSCs

2019: Voted no.1 in India by customers in Forbes World’s Best Banks Survey BSE inks pact with the Bank to give a boost to the start-up platform, 1 Million+ units of blood collected via HDFC Bank Parivartan’s Blood Donation Drive over a period of 12 years, primarily from employees, Opened 5,000th branch Marked the start of its 25th year

2020: Ranked India’s most valuable brand (for the seventh consecutive year) by BrandZ Report Launch of HDFC Bank Millennia range of cards, first ever leadership change (new MD & CEO takes over), First-of-its-kind product launch: KGC-Shaurya card for armed forces, launch of contactless, consent-based customer on-boarding via video KYC facility, deploying mobile ATMs during the lockdown Launched ‘The HealthyLife’ programme with Apollo Hospitals for customers and employees

2021: Embarked on Project ‘Future Ready’ Pledged to become carbon neutral by 2031-32

2022: HDFC Bank and HDFC Ltd. announce transformational merger.

Who is the Founder of HDFC Bank?

Aditya Puri left Citibank in 1994 with the aim of establishing a new bank in India during a time of significant change. As he approaches his retirement after 26 years at the helm, HDFC Bank stands out as the strongest and most prosperous private sector bank in the nation.

The narrative begins in the tumultuous Indian financial services industry of the early 1990s. In 1991, India was faced with a severe economic crisis due to years of heavy imports resulting in a twin deficit, a scarcity of foreign exchange reserves, and a declining currency. The government’s inability to pass a budget led to sovereign downgrades and the need for an emergency IMF loan, secured by pledging its gold reserves. Despite this setback, the government underwent a series of economic reforms, including the deregulation of the banking sector and the granting of licenses to private-sector banks.

As these events were taking place, Aditya Puri was making a name for himself at Citibank. He served as the CEO of Citibank Malaysia in 1992 and had over 20 years of experience in banking, working in various countries such as India, Greece, Saudi Arabia, Hong Kong, Korea, Taiwan, and China. He had established a reputation as a skilled commercial banker with a sharp eye for risk.

(Copyright @ India CSR)