General Overview:

HDFC Bank was incorporated in 1994 as a subsidiary of the Housing Development Finance Corporation,
with its registered office in Mumbai, Maharashtra, India. Its first corporate office and a full-service
branch at Sandoz House, Worli were inaugurated by the then Union Finance Minister, Manmohan Singh.

HDFC Bank Limited is an Indian banking and financial services company, headquartered in
Mumbai, Maharashtra. HDFC Bank is India's largest private sector bank by assets and by market
capitalization as of April 2021. It is the third largest company by market capitalization of $122.50 billion
on the Indian stock exchanges. It is also the fifteenth largest employer in India with nearly 120,000
employees.

Shareholding pattern of the company:

The equity shares of HDFC Bank are listed on the Bombay Stock Exchange and the National Stock
Exchange of India. Its American depositary receipts are listed on the NYSE issued through JP Morgan
Chase Bank.
Its global depository receipts (GDRs) was listed on the Luxembourg Stock Exchange but was terminated
by board of directors following its low trading volume.

Shareholders (as of 30 September 2021) Shareholding

Promoter group (HDFC) 25.88%

Foreign institutional investor(FII) 38.30%

Individual shareholders 13.25%

Qualified institutional buyer 4.74%

Insurance companies 2.94%

Unit Trust of India/mutual funds 14.57%

Financial institutions/banks 0.4%

Management of the company:
HDFC Bank has set high standards in corporate governance since its inception.
Right from sticking to their words to proper book writing, HDFC has never compromised with the
banking standards, and all the credit goes to Mr. Aditya Puri, the man behind HDFC Bank, who took the
bank to such great heights that today its market capitalization is more than that of Goldman Sachs and
Morgan Stanley of the US.
In 2020, after 26 years of service, he retired from his position in the bank and passed on the baton of
Managing Director to Mr. Shasidhar Jagadishan. He joined the bank as a Manager in the finance function
in 1996 and with an experience of over 29 years in banking, Jagadishan has led various segments of the
sector in the past.

SWOT Analysis of the Company:

1. Strengths of HDFC
HDFC’s strengths are internal, good characteristics that are under the company’s control and the reason
for its success. They are as follows.

 Large Network of Branches: HDFC Bank is India’s second-largest private banking sector, with
2,201 branches and 7,110 ATMs.
 Strong Consumer Banking: The ATM card issued by the bank is compatible with all domestic and
international Visa/Master cards, Visa Electron/Maestro, and American Express cards. This is one
of the reasons why HDFC cards are the most popular for shopping and online transactions.
 Higher Customer Satisfaction: When compared to other private banks, it has a high level of
customer satisfaction.
 High Employee Retention Rate: The bank has a low employee turnover rate and is regarded as
one of the best places to work in the private banking sector.
 Brand’s Goodwill: It has received numerous awards and recognition, including the title of “Best
Bank” from various financial rating institutions such as Dun and Bradstreet, Financial Express,
Euromoney Awards for Excellence, and Finance Asia Country Awards.

1. Weaknesses Of HDFC

Weaknesses are flaws that detract from one’s strengths. These are areas that the business may need to
improve to remain competitive.
 No Rural Presence: HDFC Bank does not have a strong presence in rural areas, whereas ICICI
Bank is expanding in the rural market.
  Limited Market Size: Unlike ICICI, HDFC lacks aggressive marketing strategies. The bank
primarily serves high-end clients.
 Underperforming Sectors: Some of the bank’s product categories are underperforming and
have limited market reach.
 Fluctuating Share Prices: The share price of the bank fluctuates frequently, causing investors to
be uncertain.

2. Opportunities of HDFC

External aspects in the business environment that are likely to contribute to the success of the company
are known as opportunities. Below mentioned are the opportunities of HDFC.
 Strong Fundamentals for Growth: As HDFC Bank has better asset quality parameters than
government banks, profit growth is expected to increase.
 Increasing Corporate Banking Sector: Companies, both large and small and medium-sized, are
expanding at a rapid pace. HDFC has a good reputation for keeping corporate salary accounts up
to date.
 Efficient Debt Settlement: When compared to government banks, HDFC Bank’s bad debt
portfolio has improved and its bad debt recovery rate is high.
 Foreign Markets: Because of its strong financial position, it has very good opportunities in
foreign markets, with greater scope for acquisitions and strategic alliances.

3. Threats of HDFC

External elements over which the bank has no control are referred to as threats. The company needs to
develop contingency plans for coping with them if they arise.
 Increasing NPA: The non-performing assets (NPA) of HDFC increased from 0.18 to 0.20 percent.
Even though it is a minor difference, it is not a good sign for the bank’s financial health.
 New-Age Banks: The number of non-banking financial companies and new-age banks in India is
growing.
 Lack of Growth: The HDFC is unable to increase its market share because ICICI poses a
significant threat.
 Increasing Competition: Government banks are attempting to modernize to compete with
private banks.
 Increasing Foreign Investments: The Reserve Bank of India has granted foreign banks
permission to invest up to 74 percent of their assets in the Indian market.
Competitive Analysis
Below are the few competitors of HDFC Bank:

Bank Name Total Employees

ICICI Bank 112,360

Axis Bank 61,940

Indusland Bank 29,661

Bank Of Baroda 82,886

Conclusion

HDFC Bank has provided tons of promising services to its customers. Being a private bank, the company
has earned absolute trust from its customers and gained a huge customer base throughout the country.
The bank engages with various financial and banking services such as Treasury operations and
commercial banking. HDFC Bank facilitates the banking services of various upper and middle-income
people and organizations across India. The bank has a very strong position in the market and is
considered the most reliable and reasonable private bank in India, later followed by ICICI bank.
HDFC bank follows a bold as well as a subtle business model which has brought tremendous growth and
development to the bank and its services.