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HDFC (Housing Development Financial Corporation) Bank Limited is an Indian banking and
financial services company headquartered in Mumbai, Maharashtra. It has 84,325
employees and has a presence in Bahrain, Hong Kong and Dubai. HDFC Bank is India’s largest private sector lender
by assets. It is the largest bank in India by market capitalization
as of February 2016.



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

of June 30, 2017, the bank’s distribution network was at 4,715 branches and 12,260
ATMs across 2,657 cities and towns. The bank also installed 4.30 Lacs POS
terminals and issued 235.7 Lacs debit cards and 85.4 Lacs credit card in FY


Products and servicesedit

HDFC Bank provides a number
of products and services including wholesale banking, retail banking, treasury, auto loans, two wheeler loans, personal loans, loans against property and credit cards.

The latest entry in the
league is ‘Project AI’, under which HDFC Bank, over the next few weeks,
would deploy robots at select bank branches. These robots will offer options
such as cash withdrawal or deposit, forex, fixed deposits and demat services
displaying on a screen to customers.


HDFC Bank merged with Times
Bank in February 2000. This was the first merger of two private banks in the
New Generation private sector banks category. In
2008, Centurion Bank was acquired by HDFC Bank. HDFC Bank Board approved the
acquisition of CBoP for 95.1 billion INR in one of the largest mergers in the
financial sector in India


Awards and recognition

Banking Performer, India in 2016 by Global Brands Magazine Award.

Performing Branch in Microfinance among private sector
banks by NABARD, 2016

for Best Performance in Microfinance

KPMG study
of India’s Best Banks

of the year & best digital banking initiative award 2016

Managing India Awards 2015

leader of the year- Aditya Puri

BrandZ Rankings

Valued brand in India for third successive year

Finance Asia poll on Asia’s Best Companies 2015

managed public company – India


30 Best CEOs – Aditya Puri

J. P. Morgan Quality Recognition Award

in class straight through processing rates


Current Scenario

HDFC Standard Life (HDFCSL) is one of
India’s top three private sector life insurers and offers a wide range of
insurance products. It has strengthened its position in a highly competitive
industry and has a well-diversified business mix.

HDFCSL has strong return ratios (FY17 RoEV
at 21%) and the highest new business margin (22% for FY17) among the major
private insurers, backed by its balanced product mix (47% ULIPs, 26% PAR, 27%
Non-Participating business in FY17), strong distribution network and lower operating

HDFCSL has made significant investments in
building its digital platform, which has enabled it to improve customer
satisfaction and attract new business. We estimate HDFC SL to deliver RoEV of
~19% over FY17-20E and value it on 3.5x Mar-20E EV at INR370 per share, which
implies an upside of 28% from the issue price.

New business premium to grow at 25% CAGR
over FY17-20E: HDFC SL has reported strong growth trends, which has enabled it
to consistently rank among India’s top three private insurers. We expect the
company to deliver 25% CAGR in new business APE over FY17-20. This will be
aided by aided by its increasing bancassurance tie-ups, improvement in agency
channel and higher direct sales.

Diversified product mix, improving
operating metrics to keep margins buoyant: HDFC SL has a balanced product mix
between participating, nonparticipating and ULIP products. It has steadily
improved the share of high margin protection products to 26.4% as at Sep-17,
which has helped it deliver higher new business margins.

Its diversified product portfolio and
continued improvement in operating metrics (persistency, productivity) will
keep margins/return ratios buoyant. Strong distribution network; cost ratios to
remain best-in-class: HDFCSL continues to benefit from the strong distribution
network of its bancassurance partners and has increased its bancassurance
partner count to 125. This will help widen its reach and support premium
growth. HDFCSL maintains strong control on cost ratios, aided by rising
proportion of direct/online sales and multiple technology initiatives.



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