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HDFC Bank

HDFC Bank Limited is one of India's leading private sector banks. Founded in 1994, it has emerged as a financial services powerhouse renowned for its innovative products, digital leadership, and commitment to customer service.

The early years

HDFC Bank was incorporated on August 30, 1994, by its parent company, Housing Development Finance Corporation (HDFC) Limited. HDFC was one of the first entities to receive approval from the Reserve Bank of India (RBI) to establish a private sector bank, as part of the liberalisation of the Indian banking sector.

HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. Its first branch, Ramon House in Mumbai's Churchgate area, opened on January 16, 1995. Two months later, HDFC Bank launched an initial public offering (IPO), garnering a record oversubscription of 55 times for its Rs 50 crore issue. The bank debuted on the Bombay Stock Exchange on May 19, 1995, and the National Stock Exchange on November 8, 1995.

In 1996, HDFC Bank was appointed as a clearing bank by the National Securities Clearing Corporation Limited (NSCCL). Over the next few years, it launched retail investment advisory services (1997), retail lending against shares (1998), and online real-time NetBanking (1999).

The bank marked a significant milestone in 2000 with the merger of Times Bank Limited, enabling HDFC Bank to expand its distribution network and customer base. It also became the first Indian private bank authorised to accept direct taxes, underscoring its growing stature in the banking sector.

Steady expansion in the 2000s

The early 2000s saw HDFC Bank embark on a phase of steady expansion, adding more branches and ATMs across India's burgeoning metros and tier-2 cities. From 2000 to 2010, its branch network grew from 154 to 1,725 while its ATM base expanded from 479 to 4,232.

Key highlights during this period included the launch of its credit card business (2001), becoming the first Indian company to list American Depositary Receipts (ADRs) on the New York Stock Exchange (2001), and the amalgamation of Centurion Bank of Punjab (2008).

The latter added greater geographic reach and size to HDFC Bank. In 2008, it also opened its first international branch in Bahrain. By 2010, the bank had emerged among India's top private lenders with operations across 779 cities.

Consolidating leadership in the 2010s

The 2010s witnessed HDFC Bank consolidate its position as a leader in Indian banking. It consistently grew its distribution network, adding over 300 branches and 1,000 ATMs year-on-year.

As of March 2022, HDFC Bank had 6,342 branches and over 18,000 ATMs/cash deposit machines across 3,188 cities - giving it unparalleled reach. It catered to over 4.36 crore customers, with a majority 52% of its outlets in semi-urban and rural locations.

On the technology front, HDFC Bank launched innovative services like missed call banking (2014) and 10-second personal loan approval (2015) to enhance customer convenience. It also introduced the country's first ATM-based loan disbursals in 2016.

The bank reported steady financial growth, emerging as India's largest private lender with Rs 1.8 lakh crore profits in FY22. Its brand value grew to over $21 billion, cementing its position as India's most valuable brand.

The HDFC-HDFC Bank merger (2022)

In April 2022, the long-anticipated merger of HDFC Limited and HDFC Bank was announced. The largest merger in Indian corporate history, it aimed to create a financial conglomerate providing mortgages to retail customers along with banking services.

The merger became effective in July 2023, marking the dawn of a new era for the combined entity. HDFC Bank is now India's largest lender with an asset base of Rs 28 lakh crore. Its distribution network also expanded to over 7,800 branches and 19,700 ATMs across India following the merger.

Looking ahead

As HDFC Bank enters its 30th year, the future looks bright for India's largest private lender. With its track record of innovation, customer centricity and technology leadership, HDFC Bank is well-poised to deliver robust, sustainable growth in the years ahead. Its merger with HDFC Limited provides additional heft to tap emerging opportunities in India's financial services space.