May 23, 2013
The Housing Development Finance Corporation (HDFC) Bank is the second largest private sector bank in India by net profit[1] and generated revenues of over INR 52,278.8 million in 2007.[2] HDFC Bank has a 55% market share in clearing and settlements of securities exchanges for cash and futures securities transactions.[3]. As of September 30, 2008, the bank had total assets of INR 1006.82 billion.[4]
During the global economic slowdown and tight liquidity conditions, what sets this bank apart is its high proportion of CASA (Current accounts and Savings accounts) deposits - around 44% against an industry average of 35-40% of total deposits.[5] 17% of their CASA accounts come from salary accounts, which are sticky in nature and have large idle funds the bank can make use of.[6] The high CASA proportion also ensures their costs of deposits are relatively low. [7] Also HDFC Bank is well capitalized from secondary stock offerings; in the past 12 months they raised INR 17.28 billion through lower and upper tier II bonds. [8].
(Read more at Wikinvest
) - Business Overview
- Business and Financial Metrics
- Business Segments
- Wholesale banking services(36.99% Revenue, 47.14% EBIT)[20]
- Retail Banking Services(46.46% Revenue, 32.39% EBIT)[20]
- Treasury(8.90% Revenue, 14.64% EBIT)[20]
- HDFC Bank Subsidiaries
- Key Trends and Forces
- Government regulations affect HDFC's expansion and liquidity
- Exposure to credit risks limits net interest revenue
- High CASA and NRI-related states targeted for expansion
- Competitors
- Related Articles
- References
