The Successful Business Model of HDFC Bank

Pratyusha Srivastava Pratyusha Srivastava
Jul 30, 2021 4 min read
The Successful Business Model of HDFC Bank

The corporate sector often requires major backing from banks. Private banks have always been front in targeting the blue-chip manufacturing companies in the entire Indian corporate sector. These also target small or mid-sized corporate companies and agricultural businesses.

Private banks offer tons of transactional and banking services such as trade services, cash management, working capital finance, and transactions services. Banks facilitate the structural organization management for cash services where it gets combined with the merchant and the distributor for the smooth working supply chain management, wholly for the corporate customers.

โ€Œโ€ŒPrivate Banks such as HDFC bank have been very upfront in providing the services of cash management and transactional banking system for the corporate customers, stock exchange members, mutual funds and banks. HDFC Bank is India's largest private sector bank and has always been very promising. In this article, we have discussed the remarkable business model of HDFC bank and how the bank operates. Let's get started!

About HDFC Bank
โ€Œโ€ŒWhere are the branches of HDFC Bank established?
Product and Services offered by HDFC Bank
Business Model of HDFC Bank
How does HDFC Bank operate?
FAQ

About HDFC Bank

โ€Œโ€ŒHDFC bank is a very promising and secured Indian private banking and financial services company. The company is known as the largest private sector bank by marketing capitalization and assets in India. HDFC Bank was established in 1994, headquartered in Mumbai, Maharashtra, India.

As of 2021, HDFC bank is stated as the third-largest company based on market capitalization in the Indian Stock Exchange market. HDFC bank employs around 120,000 employees in its bank and its branches, this employees count is the thirteenth-largest in India.

โ€Œโ€ŒWith the chairman Atanu Chakroborty and Sashidhar Jagdishan as the chairman, HDFC bank has grown immensely. HDFC Bank was established as the subsidiary of the Housing Development Finance Corporation. The bank is very promising and satisfactory with its services and has a huge customer base across India.

โ€Œโ€ŒWhere are the branches of HDFC Bank established?

โ€Œโ€ŒHDFC Bank is the first-ever private bank in India to obtain approval from the Reserve Bank of India (RBI). HDFC Bank has grown its network vibrantly and has gained a huge customers base throughout the country. Today, HDFC Bank has established a banking network of over 5608 branches along with 14,897 ATMs in more than 2902 cities and towns.

Product and Services offered by HDFC Bank

โ€Œโ€ŒHDFC Bank has always been very promising and satisfactory to its customers. Its top services are retail banking, auto loans, wholesale banking, two-wheeler loans, treasury, consumer durable loan, personal loans, loans against property, credit cards, and lifestyle loans. Moreover, HDFC Bank also offers various digital products including SmartBUY and Payzapp.

Business Model of HDFC Bank

โ€Œโ€ŒHDFC Bank, the leading finance company in India has always been guaranteeing and fulfilling its services. The company has a very strong foothold in the market as a finance company. Following the lead, the Industrial Credit and Investment Corporation of India (ICICI) is known to be the second-largest bank in the country.

โ€Œโ€ŒHDFC Bank has been revolutionary with its terms of deposits and loan disbursements, which keeps it at the top of the Finance sector market. HDFC Bank runs on a very subtle business model plan where it generates universal banking-based synergies by cross-selling the bank's products to its subsidiaries across India, without actually incorporating any commodity.

HDFC Bank has gained a huge customer base and enormous finance handling. With its current business model, the bank is up for dozens of more achievements and has become the first-ever most reliable, and exclusive private bank in India, with great customer support.

Deposits of HDFC Bank Limited
Deposits of HDFC Bank Limited

How does HDFC Bank operate?

โ€Œโ€ŒBanks are considered the safest house for people to conserve their money and funds. With the growing technology, private banks are putting everything in their power to provide the best services to their customers and gain their loyalty.

HDFC Bank operates through various segments such as:

Retail Banking

The bank offers an assorted range of finance products and services to its customers via a developing HDFC branch or its ATM or through various digital channels including Phone Banking, Netbanking, and MobileBanking.

Treasury

Through the Treasury services, the Bank guides businesses in generating great outcomes on their funding and financial management risk. Treasury includes the product services of the local currency market and debt securities, foreign derivatives and exchange, and capitals.

Wholesale Banking

The bank offers a broad gamut of transactional and commercial banking services to various businesses and organizations regardless of their size. These services are trade services, cash management, working capital finance, and transactional services.

Conclusionโ€Œโ€Œ

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 pretty bold as well as a subtle business model which has brought tremendous growth and development to the bank and its services.

FAQ

What is the revenue of HDFC Bank?

The revenue of HDFC Bank is 1.56 lakh crores INR in 2020.

Who is the CEO of HDFC Bank?

Sashidhar Jagdishan is the current CEO of HDFC Bank.

Is HDFC a foreign bank?

No, HDFC Bank is an Indian banking company.

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