HDFC Bank – SWIFT codes in India

HDFC Bank – SWIFT codes in India



HDFC Bank is India’s largest private sector bank by assets and market capitalization. Founded in 1994, the bank has grown rapidly over the past two decades to become a financial powerhouse with a pan-India presence and a diversified business model spanning retail banking, wholesale banking, and treasury operations.

Corporate Profile

Headquartered in Mumbai, HDFC Bank is led by Managing Director and CEO Sashidhar Jagdishan, who took over from Aditya Puri in October 2020 after a 26-year stint at the helm. As of March 2023, the bank had total assets of Rs. 20.7 trillion ($253 billion), total deposits of Rs. 16.6 trillion ($203 billion), and net profit of Rs. 414 billion ($5.1 billion) for FY23. The bank’s main subsidiaries include HDFC Securities (broking), HDB Financial Services (NBFC), HDFC Life (life insurance), HDFC ERGO (general insurance), and HDFC AMC (mutual funds).

Retail Banking

The bank’s retail banking business offers a wide range of products and services to over 70 million customers through its network of 6,342 branches and 18,130 ATMs across 3,188 cities/towns. These include savings and current accounts, fixed and recurring deposits, personal loans, auto loans, home loans, credit cards, debit cards, forex cards, and private banking. The bank is also a leader in digital banking with over 50% of transactions now taking place through its mobile and internet banking platforms.

Wholesale Banking

HDFC Bank’s wholesale banking business caters to the needs of large and mid-sized corporations, SMEs, financial institutions, government entities and high net worth individuals. It offers a full suite of commercial banking products and services, including working capital finance, term loans, trade finance, cash management, foreign exchange, and investment banking. The bank also has a strong presence in the infrastructure and real estate financing space through its specialized SBUs.

Other Business Segments

Apart from its core banking operations, HDFC Bank also has several subsidiaries and associates in other financial services domains:

  • HDFC Securities is a leading retail broking firm with over 3 million customers and a market share of over 8% in the cash segment.
  • HDB Financial Services is an NBFC that offers products such as loans against property, consumer durable loans, two-wheeler loans etc.
  • HDFC Life is a joint venture with Standard Life Aberdeen and one of India’s largest private life insurers with over 40 million policies in force.
  • HDFC ERGO is a joint venture with ERGO International AG (Munich Re Group) and offers a range of general insurance products like motor, health, travel and home insurance.
  • HDFC AMC is the bank’s asset management arm with over Rs. 4 trillion in AUM across mutual funds and segregated mandates.

Technology and Innovation

HDFC Bank has been at the forefront of leveraging technology for enhancing customer experience, improving operational efficiency and driving business growth. It has made significant investments in its digital and IT infrastructure to support initiatives like mobile banking, net banking, digital lending, API banking, and conversational banking.

The bank has also partnered with several fintechs and tech startups to co-create innovative solutions in areas like payments, blockchain, artificial intelligence and cloud computing. For instance, it has launched a digital lending platform called PayZapp that uses AI and machine learning for instant loan approvals and disbursals. It has also implemented blockchain for trade finance and KYC purposes.

Risk Management

Given its size and systemic importance, robust risk management is a key priority for HDFC Bank. The bank has a comprehensive risk management framework that spans credit risk, market risk, operational risk, liquidity risk and other non-financial risks.

Its credit risk management involves rigorous underwriting standards, risk-based pricing, portfolio diversification, and proactive monitoring and recovery. The bank’s gross NPAs stood at 1.17% as of March 2023, among the lowest in the industry, while provision coverage was healthy at 73%. However, the bank’s asset quality faces near-term pressures from the economic fallout of COVID-19.

On the operational risk front, the bank has strong internal controls, compliance procedures, and business continuity plans. It has also fortified its cyber risk management in view of rising digital adoption and remote working norms. However, it has faced some regulatory strictures in the recent past, including a temporary halt on new credit card issuances and digital 2.0 initiatives due to outages.

ESG and Sustainability

HDFC Bank is committed to integrating ESG considerations into its business practices and contributing to sustainable development. Some of its key initiatives in this area include:

  • Green lending: The bank has set up a dedicated sustainable livelihood initiative to provide low-cost finance for green projects in renewable energy, energy efficiency, waste management, green buildings etc. It has also raised green bonds to fund such projects.
  • Financial inclusion: The bank has a strong focus on serving underbanked and unbanked segments through its rural and semi-urban branch network, as well as partnerships with microfinance institutions, business correspondents, and agri-techs. It also runs financial literacy camps and skill development programs in these areas.
  • CSR and philanthropy: HDFC Bank’s corporate social responsibility programs span healthcare, education, skilling, environmental sustainability, and rural development. Its flagship Parivartan program has reached over 8 crore people across 35 states/UTs. The bank also makes significant philanthropic contributions through the HDFC Bank Cares Foundation.
  • Workplace diversity: HDFC Bank is an equal opportunity employer and has over 31% women in its workforce currently. It runs several programs for ensuring gender diversity, LGBTQ+ inclusion, and hiring of differently abled persons.

Financial Performance

HDFC Bank has consistently delivered strong financial performance over the years, outpacing peers on most metrics. Some of the key highlights for FY23:

  • Net profit grew by 20% YoY to Rs. 414 billion, driven by healthy growth in net interest income and fee income
  • Net interest margin (NIM) improved from 4.1% to 4.2% YoY, aided by an increase in low-cost CASA deposits
  • CASA ratio improved from 47% to 48% YoY, supporting margin expansion
  • Advances grew by 21% YoY to Rs. 14.5 trillion, driven by strong growth in both retail and wholesale segments
  • Total deposits grew by 16% YoY to Rs. 16.6 trillion, with a steady CASA and retail deposit profile
  • Return on assets (ROA) stood at 1.9% and return on equity (ROE) at 16.6%, among the best in the industry

Growth Strategy and Outlook

Going forward, HDFC Bank aims to cement its leadership position in the Indian banking sector while pursuing profitable and sustainable growth. Its key strategic priorities include:

  • Deepening customer relationships through cross-sell and up-sell of products and services
  • Leveraging technology and partnerships to acquire new customers and lower costs
  • Tapping growth opportunities in underpenetrated segments like rural banking, MSME lending, and government banking
  • Expanding its distribution footprint in key geographies while rationalizing unviable branches
  • Building a future-ready organization with the right talent, culture and governance framework

In terms of inorganic growth, the bank’s proposed merger with parent HDFC Ltd, India’s largest housing finance company, is a key development to watch out for. The merger, subject to regulatory approvals, is expected to be completed by Q2 FY24 and will create a financial conglomerate with a large balance sheet and a diversified business mix.

However, the bank also faces certain headwinds such as increasing competition from public sector banks, small finance banks and fintechs; potential asset quality pressures in the post-COVID environment; and regulatory risks around governance and business conduct. Managing these challenges while sustaining its growth momentum will be key to HDFC Bank’s future prospects.


In conclusion, HDFC Bank’s strong market position, diversified business model, robust franchise, and proven execution capabilities position it well to navigate the challenges and capture the opportunities in the Indian banking sector. With a healthy balance sheet, strong capital adequacy (20%+ CAR), and a conservative risk management approach, the bank is well-placed to weather economic cycles and regulatory changes.

However, sustaining its premium valuations (3.5x P/BV) in the face of increasing competition and potential growth moderation in the core banking business could be a challenge. That said, the proposed merger with HDFC Ltd could be a game-changer, giving the bank greater scale, synergy benefits, and cross-sell opportunities to drive its next leg of growth. Overall, HDFC Bank remains a top pick in the Indian BFSI space for long-term investors.


  1. What makes HDFC Bank the largest private sector bank in India?

HDFC Bank is the largest private sector bank in India by assets, deposits, advances, and market capitalization. As of March 2023, the bank had total assets of Rs. 20.7 trillion, total deposits of Rs. 16.6 trillion, and a market capitalization of over Rs. 9 trillion. The bank’s scale, reach, brand, and financial performance are key factors behind its market leadership.

  1. How has HDFC Bank leveraged technology for growth and innovation?

HDFC Bank has been a pioneer in leveraging technology for enhancing customer experience, improving operational efficiency, and driving business growth. It has made significant investments in digital banking channels like mobile and internet banking, AI-powered chatbots and voicebots, and API banking solutions. It has also partnered with fintechs and startups to co-create innovative solutions in areas like payments, lending, and blockchain.

  1. What are the key risks facing HDFC Bank currently?

Some of the key risks facing HDFC Bank currently include:

  • Asset quality pressures in the retail and MSME segments due to the economic impact of COVID-19
  • Increasing competition from public sector banks, small finance banks, and digital-only banks
  • Regulatory risks around governance, data privacy, and business conduct
  • Potential integration challenges and cultural differences post-merger with HDFC Ltd
  • Cyber security threats and IT system vulnerabilities due to increasing digitization
  1. How is HDFC Bank promoting financial inclusion and sustainability?

HDFC Bank has a strong focus on promoting financial inclusion and sustainable development through various initiatives like:

  • Providing low-cost finance for green projects in renewable energy, waste management etc.
  • Expanding its presence in rural and semi-urban areas through branches and business correspondents
  • Running financial literacy camps and skill development programs for underbanked communities
  • Integrating ESG considerations into its credit appraisal and risk management frameworks
  • Supporting healthcare, education, and rural development projects through its CSR programs
  1. What is HDFC Bank’s strategy for international expansion?

HDFC Bank has a selective approach to international expansion currently, focusing on serving the cross-border banking needs of its domestic clients and the Indian diaspora. It has branches in Bahrain, Hong Kong, and Dubai, and representative offices in Abu Dhabi, Kenya, and Nairobi. Going forward, the bank may explore strategic opportunities in other international markets, but the focus is likely to remain on consolidating its domestic franchise and leveraging the growth potential in the Indian market.

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