Company Overview of – HDFC Bank, ICICI Bank

“A bank is a place that will lend you money only if you can prove that you don’t really need it”. This famous quote by Bob Hope explores the funny side of banking. Above all, there’s one statement about banks that don’t need any validation which is- Banks are the money pumping factories of an economy, the pillars of an economy. On that note, we will dig deeper into the vaults of two major banks of our country: HDFC Bank and ICICI Bank.

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HDFC Bank

• Incorporation Year: 1994
• Ownership Group: HDFC Group
• Headquarter: Mumbai, Maharashtra, India
• Chairman: Deepak S. Parekh
• Present Head(MD): Aditya Puri
• Chief Financial Officer: Sashidhar Jagdishan

HDFC Bank happens to be one of the largest banks in India. Further, it is the market leader in e-commerce. Definitely, such a pioneer would require adequate infrastructure to cater to its customers. As a matter of fact, HDFC Bank’s web of distribution is woven of 4,715 branches and 12,260 ATMs across 2,657 cities.

Moreover, it provides a number of products and services which includes Wholesale banking, Retail banking, Treasury, Auto (car) Loans, Two Wheeler Loans, Personal loans, Loan against Property and Credit Cards. In 2017, HDFC bank’s revenue amounted to ₹81,602 crore and gave employment to 84,325.

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History

HDFC Bank incorporated in 1994, began operations with its first registered office in Mumbai, India. In fact, Dr. Manmohan Singh, our then Finance Minister, inaugurated HDFC Bank’s full-service branch and first corporate office at Sandoz House, Worli.

To point out, it is the only private bank to receive in-principle approval from the RBI for the establishment of a bank.

Company’s Own Words

Mission: To be a World Class Indian Bank. The objective is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services for target retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent with the bank’s risk appetite.

HDFC Bank’s business philosophy is based on five core values: Operational Excellence, Customer Focus, Product Leadership, People and Sustainability.

Portfolio

HDFC Group companies are HDFC Ltd., HDFC Securities., HDFC Mutual Fund, HDFC Realty, HDFC Life, HDFC ERGO, HDFC Pension, and HDB Financial Services.

In News

According to BrandZ rankings in 2016, HDFC Bank was the most valuable brand in India for a third consecutive year. Also, in 2016 again, a study of India’s best banks by KPMG declared HDFC Bank as the best bank of the year and awarded it the best digital banking initiative award.

On February 2000, HDFC Bank merged with the Times Bank. Then again in 2008, it acquired the Centurion Bank. Lastly, in 2016 it was awarded as the best-performing branch in the microfinance among the private sector banks by NABARD.

ICICI Bank

• Incorporation Year: 1994
• Ownership Group: ICICI Group
• Headquarter: Mumbai, Maharashtra, India
• Chairman: M.K. Sharma
• Present Head(MD and CEO): Sandeep Bakhshi
• Chief Financial Officer: Rakesh Jha

One of the oldest private banks standing in our country, ICICI Bank is the leader in the private sector.ICICI Bank( Industrial Credit and Investment Corporation of India) is a multinational banking and financial services company.

The bank caters to both corporate and retail customers through a variety of delivery channels and subsidiaries. These subsidiaries focus on areas like investment banking, life, non-life insurance, venture capital, and asset management.

Further, it is indeed an international bank with a presence in 19 countries. The bank currently has a network of 4867 branches and 14367 ATMs across India. In 2016, it saw a revenue of US$10.3 billion and employed 74,096..

Company’s Own Words

Vision: To be the leading provider of financial services in India and a major global bank.

Mission: ICICI will leverage our people, technology, speed and financial capital to:

• be the banker of the first choice for our customers by delivering high quality, world-class products, and services.
• expand the frontiers of our business globally.
• play a proactive role in the full realization of India’s potential.
• maintain a healthy financial profile and diversify our earnings across businesses and geographies.
• maintain high standards of governance and ethics.
• contribute positively to the various countries and markets in which we operate.
• create value for our stakeholders.

Portfolio

ICICI Group companies and its subsidiaries are ICICI Prudential Life Insurance Company, ICICI Securities, ICICI Lombard General Insurance Company, ICICI Prudential AMC & Trust, ICICI Venture, ICICI Direct, ICICI Foundation, and Disha Financial Counselling.

Also, it has banking subsidiaries in the UK and Canada. Further, the various products in the portfolio bag of this bank are Credit cards, consumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, wealth management, personal loans, payment solutions.

In the News

To point out, ICICI bank has etched so many acquisitions in its history that it is out of the scope of our study to mention them all. However, recently in 2010, it acquired the Bank of Rajasthan for a staggering ₹ 30 billion.

Moreover, a survey by Brand Equity in 2016 for India’s most trusted brands of 2016, ranked ICICI Bank first amongst all the private sector banks.

Likewise, ICICI Foundation won the ‘Best CSR & Sustainability Practices Award for 2016’ at the 4th Asia Business Responsibility Summit. On the contrary, ICICI Bank gathered negative attention for being India’s one of the leading private banks to be accused of blatant money laundering through violation of RBI guidelines.

In the famous CobraPost sting operation which shook up Indian banking industry during April–May 2013.

Solved Question for You

Q: What are the various areas of operations of the subsidiaries of ICICI?

Ans: These areas are investment banking, life, non-life insurance, venture capital, and asset management.