HDFC Bank Ltd.
General Overview
HDFC Bank is one of India’s leading private banks and was among the first to receive approval from
the Reserve Bank of India (RBI) to set up a private sector bank in 1994. Today, HDFC Bank has a
banking network of 5,326 branches and 14,996 ATMs spread across 2,825 cities and towns.
HDFC Bank was incorporated in August 1994 in the name of HDFC Bank Limited, with its registered
office in Mumbai, India. The bank commenced operations as a Scheduled Commercial Bank in
January 1995.
Share Holding Pattern
As a public limited company, HDFC Bank has a diverse range of shareholders and owners. On this
page, you can find the shareholding and ownership pattern over the years, the history of share and
bond issues and unclaimed dividend.
Shareholding Pattern - HDFC Bank Ltd.
Holder's Name No of Shares % Share Holding
No Of Shares 5490278560 100%
Promoters 1164625834 21.21%
Foreign Institutions 1652740279 30.1%
N Banks Mutual Funds 626334773 11.41%
Central Govt 11166083 0.2%
Others 168450563 3.07%
General Public 490297877 8.93%
Financial Institutions 348547623 6.35%
GDR 1028115528 18.73%
Management of the Company
HDFC Bank's Board of Directors is comprised of distinguished individuals with a wealth of
experience in public policy, administration, industry and commercial banking. Senior executives
representing HDFC Ltd. are also on the Board.
Various businesses and functions in the bank are headed by senior executives with work experience
in India and abroad. They report to the Managing Director. The Bank is focused on recruiting and
retaining the best talent in the industry as it believes that its people are a competitive strength.
Managers
Name Age Since Title
Aditya Tapishwar Puri 69 1994 Managing Director & Executive Director
Shyamala Gopinath 71 2015 Chairman
Srinivasan Vaidyanathan - 2019 Chief Financial Officer
Kaizad M. Bharucha 54 2013 Executive Director
Umesh Chandra Sarangi 67 2016 Independent Director
Srikanth Nadhamuni 55 2016 Non-Executive Non-Independent Director
Ranganath D. Mavinakere 56 2019 Independent Director
Malay Patel 42 2015 Independent Director
Sanjiv Sachar 62 2018 Independent Non-Executive Director
Sandeep Parekh 48 2019 Independent Director
SWOT Analysis
Strengths
HDFC bank is the second largest private banking sector in India having 2,201 branches
and 7,110 ATM’s
HDFC bank is located in 1,174 cities in India and has more than 800 locations to serve
customers through Telephone banking
The bank’s ATM card is compatible with all domestic and international Visa/Master card,
Visa Electron/ Maestro, Plus/cirus and American Express. This is one reason for HDFC
cards to be the most preferred card for shopping and online transactions
HDFC bank has the high degree of customer satisfaction when compared to other private
banks
The attrition rate in HDFC is low and it is one of the best places to work in private banking
sector
HDFC has lots of awards and recognition, it has received ‘Best Bank’ award from various
financial rating institutions like Dun and Bradstreet, Financial express, Euromoney awards
for excellence, Finance Asia country awards etc
HDFC has good financial advisors in terms of guiding customers towards right investments
Weaknesses
HDFC bank doesn’t have strong presence in Rural areas, where as ICICI bank its direct
competitor is expanding in rural market
HDFC cannot enjoy first mover advantage in rural areas. Rural people are hard core loyals
in terms of banking services.
HDFC lacks in aggressive marketing strategies like ICICI
The bank focuses mostly on high end clients
Some of the bank’s product categories lack in performance and doesn’t have reach in the
market
The share prices of HDFC are often fluctuating causing uncertainty for the investors
Opportunities
HDFC bank has better asset quality parameters over government banks, hence the profit
growth is likely to increase
The companies in large and SME are growing at very fast pace. HDFC has good reputation
in terms of maintaining corporate salary accounts
HDFC bank has improved it’s bad debts portfolio and the recovery of bad debts are high
when compared to government banks
HDFC has very good opportunities in abroad
Greater scope for acquisitions and strategic alliances due to strong financial position
Threats
HDFC’s nonperforming assets (NPA) increased from 0.18 % to 0.20%. Though it is a slight
variation it’s not a good sign for the financial health of the bank
The non-banking financial companies and new age banks are increasing in India
The HDFC is not able to expand its market share as ICICI imposes major threat
The government banks are trying to modernize to compete with private banks
RBI has opened up to 74% for foreign banks to invest in Indian market
Competitor Analysis
HDFC's top 31 competitors are SBI, ICICI Bank, BOB, Punjab National Bank, Kotak, IDBI, Axis
Bank, IndusInd, YES BANK, BOI, Canara Bank, HSBC, Citi, ICBC, Au Financiers, Deutsche
Bank, Barclays, UBS, Goldman Sachs, Bank of America, Wells Fargo, RBS, JPMorgan Chase,
Morgan Stanley, BNY Mellon, Bandhan Bank, RBL Bank, IOB, IIFL, Credit Suisse and
Edelweiss. Together they have raised over 64.1B between their estimated 3.0M
employees. HDFC has 115,822 employees and is ranked 9th among it's top 10 competitors.
The top 10 competitors average 102,512.
SBI is HDFC's #1 competitor. SBI's headquarters is in Mumbai, Maharashtra, and was
founded in 1806. Like HDFC, SBI also works within the Banks sector. SBI generates
341% of HDFC's revenue.
ICICI Bank is one of HDFC's top rivals. ICICI Bank was founded in Mumbai,
Maharashtra} in 1955. ICICI Bank operates in the Banks industry. Compared to HDFC,
ICICI Bank generates $3.4B more revenue.
BOB is one of HDFC's top competitors. BOB is a Public company that was founded in
1908 in Baroda, Gujarat. BOB is in the Banks industry. Compared to HDFC, BOB has
60,160 fewer employees.
Conclusion
The longer term expectations from the 34 analysts of HDFCBANK is tilted towards the positive
sentiment. Since forecasting becomes more difficult further into the future, broker analysts
generally project out to around three years. To reduce the year-on-year volatility of analyst
earnings forecast, I’ve inserted a line of best fit through the expected earnings figures to
determine the annual growth rate from the slope of the line.
By 2022, HDFCBANK’s earnings should reach ₹380b, from current levels of ₹223b, resulting in
an annual growth rate of 16%. EPS reaches ₹138.6 in the final year of forecast compared to the
current ₹83.3 EPS today. This high rate of growth of revenue squeezes margins, as analysts
predict an upcoming margin contraction from the current 36% to 34% by the end of 2022.
