HDFC achieves most successful year

The HDFC Bank has been able to record a thumping Rs. 375 m profit after tax in 2014 which was a 137% increase over Rs. 158 m recorded in 2013.

According to its 2014 Annual Report, the total deposits and borrowings grew by 27% from Rs. 24,159 m in 2013 to Rs. 30,692 m in 2014. Total shareholders’ funds also has risen by Rs. 311 m or 12% to Rs. 2,886 m from Rs. 2,575 m in 2013 as a result of higher retained earnings. 

The company attributed its success to the dedication and efficiency of its employees and management. The year 2014 was a successful year for HDFC given its ability to proactively adapt to the changing environment, which was necessary to achieve the bank’s goals in the face of a highly volatile and competitive market. The bank’s business strategy seems to be one of evolution and adaptation to facilitate a seamless delivery of a broad range of products and services related to housing, including those complementary to financial services through appropriate organisational structures and processes that encompass subsidiaries and strategic alliances. 

The bank has continued to reflect in the recent past the evolutionary approach of its activities, creating shareholder value and sustainable growth through meeting the aspirations of all stakeholders, the Annual Report stresses.

According to the bank’s performance in 2014, gross dividend too has been increased by almost 140% to Rs. 38 m in comparison to Rs. 16 m in 2013.

As per the Annual Report, since recently the bank has supplemented individual loan products with project financing, targeted at a wider customer spectrum including the corporate sector. The HDFC Bank from it activities elaborated in the Annual Report shows that it enjoys a unique position in the category of low and middle income earners with a solid track record of financing this segment.

The bank has also been able to maintain a matching long-term fund portfolio for financing its loan products. It is clear that all these efforts are aimed at higher internal accruals so as to achieve a robust balance sheet and a strong bottom line.

The HDFC Bank is now an easily recognisable brand and customers believe the bank is a bank that is consistent in its values and principles while also holding the capacity to dispense a convenient and speedy service, the management stressed. 

The trends at HDFC Bank, evident from the information given in the Annual Report, show that the bank is competent enough to meet global challenges in banking, namely, enhancement of quality of customer service, innovations in technology, improvement of risk management systems and diversifying product portfolio, etc. 

– C.A. Sarathchandra, former CEO at HDFC Bank. Views presented in this article are the writer’s personal opinion.