HDFC Bank Chief Sashidhar Jagdishan has cut by a year the time period required to double business. Buoyed by the merger of HDFC with HDFC Bank, he now wants to create a new HDFC Bank every four years against the earlier projection of five years.
“The runway for financial services and mortgage, which are so underserved and under penetrated, is going to be very large. HDFC Bank - the combined entity - with a large and growing distribution and customer franchise, more than adequate capital, a healthy asset quality and profitability, will be best positioned to capture growth.
“The pace at which we aim to grow - we could be creating a new HDFC Bank every four years! “ Jagdishan said in a message welcoming HDFC’s 4,000 plus employees to the HDFC Bank fold.
In the last annual report (FY22), Jagdishan observed that his Bank can potentially add a HDFC Bank every five years.
Post the merger of HDFC, with HDFC Bank, with effect from July 1, 2023, the latter ranks among the world’s most valuable banks.
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The private sector lender ranks fourth in terms of market capitalisation, behind JP Morgan Chase & Co, Industrial and Commercial Bank of China and Bank of America Corp, per data compiled by Bloomberg.
The HDFC Bank chief observed that the sustainability of his Bank’s growth is dependent on continuous investments in people, distribution as well as emerging and advanced technologies.
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“We will be adding 1500+ branches every year for some years to reach out to the burgeoning middle and upper segment of this vast country.
“The vision that we have laid out for ourselves in reimagining our technology architecture will make us a ‘Technology company’ which is into banking! You will be proud of the same when it gets unveiled over the next three years,” he said.
Jagdishan emphasised that the decision for the merger was spurred by the right timing, both, from an ‘Economics’ and a regulatory perspective.
”Our work starts from today, in realising the potential of what this merger holds for us,” he said.
Assuring employees of erstwhile HDFC that they will be treated fairly, Jagdishan underscored that HDFC’s leadership team and he have kept the promise that their job and pay will be protected.
“We shall set up a grievance committee to hear the concerns of anyone who wishes to air their woes. We commit that once you settle into your roles, the committee will examine any further corrections to levels,” he said.