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HDFC Bank Annual Report 2023 Summary

Updated: Oct 1, 2023

  • HDFC Bank has solidified its position as a trusted financial institution in India. As a responsible leader, the Bank is committed to contributing to Nation Building. By mobilising financial resources and expertise, it actively participates in initiatives that fulfil individual aspirations, drive economic growth and social progress.

  • Balance Sheet Size Rs. 24,66,081 crore (+19.2%) Deposits Rs. 18,83,395 crore (+20.8%) Advances Rs.16,00,586 (+16.9%) Return On Equity 17.4% (+50 bps) Return on Assets 2.07%(average) 7,821 Branches 8.28 Cr+ Customers Gross NPA Ratio FY23 1.17% vs 1.12% in FY22

  • On April 4, 2022, HDFC Bank and HDFC Limited announced their intention tomerge, and this merger has been successfully implemented as of July 01, 2023. HDFC Bank merged with HDFC Limited, adding home loans to its product suite, becoming one of the world's most valued banks.

  • HDFC Bank with its stronger digital platforms, digital journeys and physical branch network will have the ability to offer the home loan customer a complete bouquet of the Bank’s and subsidiaries' products and services.

  • The merger between HDFC Bank and HDFC Ltd. was a strategic move with strong rationale. The goal was to build stronger bonds with home loan customers and offer them a complete range of financial products and services through HDFC Bank's digital platforms and physical branch network. This bundled offering is expected to be a game-changer in the market.

  • The bank's international business had a balance sheet size of US$7.68 Billion as of March 31, 2023, and its advances accounted for 2.59% of the total advances. Overall, the contribution of overseas branches to the bank's total income in FY23 was 1.2%.

  • As India's economy grows, home buying, especially in affordable housing, is expected to accelerate and contribute significantly to the country's GDP. With a larger balance sheet post-merger, HDFC Bank can increase its exposure to infrastructure projects, actively contributing to nation-building and India's growth story. The bank aims to grow at a rapid pace, potentially creating a new HDFC Bank every four years.

  • HDFC Bank is currently undergoing a technology transformation to become a future-ready bank while focusing on running the bank efficiently. The digital transformation journey is driven by new-age tech such as AI/ML, cloud-native architecture, and API-driven banking. The bank has introduced flagship programs like PayZapp 2.0, SmartHub, Bank One Program, and Acquisition Platform to enhance customer experiences and improve efficiency.

  • Additionally, the bank has launched initiatives like Xpress Car Loan and Smart Saathi to provide digital solutions to customers and empower Business Correspondents. The bank is also leading the industry in various innovations, including Digital Cattle Finance, Digital Rupee, and exploring AI/ML-based data extraction and signature verification.

  • The bank's technology upgrade and digital initiatives aim to achieve growth and excellence in customer service.

  • The cost-to-income ratio increased by 3.5% over the previous year and stands at 40.4% for FY23. This is due to increase in operating expenses by 27.3% over the previous year. The increase is largely attributable to continued focus on expanding its network.

  • The Bank added 1,479 branches in FY23. The core net interest margin remained steady at 4.1% on total assets.

  • We remain well-capitalised which is reflected in our capital adequacy ratio of 19.3%. As a responsible bank, we have built a substantial cushion against any adverse impact with a provision coverage ratio of 75.8%, up from 72.7% in the previous year.

  • The Commercial and Rural Banking (CRB) vertical is a significant growth engine for HDFC Bank, contributing to Priority Sector Lending requirements and offering high Return On Assets (ROA). It was the fastest-growing vertical for the bank in the past year, with a wide reach across geographies, enabling growth rates exceeding industry averages. The bank plans to expand its services to 2.5 lakh villages in the rural segment, supporting traditional agriculture and allied activities. The CRB vertical is expected to continue contributing to the bank's growth and the nation's development through its diverse range of products and services.

  • As we recognise the increasing shift towards digital transactions, we envision the transformation of retail branches into engagement centres.

  • With a 'service first culture', we leverage robust analytics and AI to suggest personalised recommendations based on customer transactions and digital behaviour for services and products.

  • No. 1 in Credit cards: 28.6% Market share No. 1 in Commercial Cards No. 2 in Debit Cards: 17% Market share

  • PayZapp 2.0 achievements post its March 2023 launch: 1.1 Million customers in 45 Days 1.5X increase in Avg Customer Spends First app to be enabled with RuPay Credit Cards for UPI payments 65 Lakh+ Total Transactions



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