Too big to fail. That’s what HFDC has become in less than thirty years of operation. Considering the company is so young, it’s amazing that it’s been able to become integrated into the Indian economy to the extent that it would be massively detrimental to the country for it to go under.

It’s an incredibly important bank domestically in India, the second largest country by population in the world. The company came into existence after India opened up its banking sector, which had previously been dominated by the state run banks what were the hallmark of the Indian financial sector. 

Growth Explosion

HFDC was incorporated in 1994 with its main office in Mumbai, India. It later opened its original branch and a corporate office in the Sandoz House in Worli. Both were christened by Manmohan Singh, the Union Finance Minister at the time. 

In just twenty-five years, the company has exploded across India. It’s got more than five thousand branches across over twenty-five hundred cities. 

Like other major banks, the company offers a whole range of products and services. These include retail banking, small loans, loans against properties, lifestyle loans, personal loans, auto loans, wholesale banking, and more.

The company has expanded further into the digital market with its products like SmartBUY and Payzapp.

Ranked Success

The company has almost one hundred and five thousand employees. When counted by assets, it’s the largest private sector bank in India. Measured by market capitalization, it’s the largest bank in India. If you’re measuring by private sector lending, HDFC comes in second place in India. 

HDFC is in the top one hundred most valuable global brands. 

Continuity Matters

A major part of what has kept HDFC growing and profitable has been the continuity at the top. HDFC’s senior management has stayed the same with Shyamala Gopinath and Aditya Puri at the top since 1994. 

It’s not just the management that’s stayed the same though. HDFC has had a continuous history of acquisition. It merged with Times Bank in the year 2000. This first merger of private banks in India’s new banking reality was highly controversial. HDFC then bought out Centurion Bank in 2008. One of the largest mergers in the history of the Indian financial sector happened when HDFC bought CBoP for almost one hundred billion Indian rupees. 

Concerns over the spread and influence HDFC through these mergers and acquisitions has been consistent across India, as the concept of a bank that is too big to fail has led to pressures about the near monopoly that the bank has in the country. 

Positive Association

There have been a whole host of awards for HDFC. It’s been the recipient of the Bank of the Year award by Business Today, the Best Bank in India by Global magazine, and the Best Large Bank and Fastest Growing Large Bank by the World Business Magna Awards.

The company has also expanded to have a whole range of products and services with its associating companies.

  • HFDC Securities
  • HDFC Life 
  • HDFC Health
  • HDFC Sales
  • HDFC Property Fund
  • HDFC Realty
  • HDB Financial Services
  • HDFC Pension
  • HDFC Mutual Fund

In just a short amount of time, this company has become an intrinsic part of the banking services of India.