Sagar Karkhanis' INDIA

Sunday, October 29, 2017

HDFC Bank story

A Bank for the Buck - Tamal Bandyopadhyay's book

H T  Parekh - joined ICICI in 1956, always had an idea a day. 
Home finance - started i 1978 where 34 yr old Deepak Parekh joined. Ex EY, ANZ Grindlays 
HDFC IPO of Rs 10 cr at par bombed. Aga Khan Fund bought 5%

Oct 1987 at 10th anniversary of HDFC Ltd - Mr Deepak Satawalekar ,GM - Finance & Planning, made a presentation on the way forward for the mortgage lender.
He listed activities that they should be doing under the HDFC umbrella - Bank, Mutual Funds, Insurance, Property Fund

Jan 1993 when RBI opened banking licenses for pvt sector, 110 applicants. 10 got.
Deepak Parekh met S S Thakur after inviting him from UN Zambia.
Feb 1994 - he met Aditya Puri in Kuala Lampur. Aditya was earning $ 100,000 plus bonus. " do you know how much I get here ? You have to tell me what's in it for me"
Wanted complete freedom, no interference.

RBI stipulated Rs 100 cr minimum capital. Deepak Parekh wanted Rs 200 cr.
40% maximum promoter holding meant Rs 80 cr. that was 80% of HDFC paid up capital.
went to London to meet National Westminster Bank Plc
went to NewYork to meet Bankers Trust 
went to Singapore to meet DBS
Satpal Khattar from Singapore bought 5% stake. 
NatWest bought 20%

Rs 50 cr IPO for 25% stake opened March 1995 at par.
Listed May 1995 at Rs 40. 

Name of bank suggested - Bank of Bombay, Everest Bank, Bombay International Bank 
"I will catch a flight and go back to KL. if it's HDFC Bank I am here, else forget it"
Aditya's vision was to build a bank that will compete with global best on all parameters - technology, speed, customer service. Did not want to hire too many from same bank.

"Global gyaan mat de, laddo kidhar hai who bataa"

First corporate office at Sandoz House, Worli. temporary office in Kamala Mills

Vinod Yennmadi - first employee
Paresh Sukhtankar - 1985 JBiMs topper, Citibank campus placed
Ram - BoA Chennai first IT employee. IIT, IIM
Harish
Samir Bhatia - Corp Banking, left Warden Road Citibank flat
A Rajan - BoA, staying at Nepean Sea Road
Shailendra Bhandari - Treasury at Citicorp Securities
Neeraj Swarup - ex BoA, IIM-A
Luis Miranda
A Rajan
Shashi
Abhay Aima

HDFC Bank initial focus was Corporate & Wholesale banking as it was lower cost and the people had that background. Everyone did cold calling. Aditya, Harish, Paresh all.
Siemens was first customer.
Top 200 companies was target. Tata Motors, Tata Steel, TVS, Titan, Ashok Leyland etc
Micro marketing - pick one customer and target the whole ecosystem - his suppliers, dealers etc. Complete supply chain
Open Broker accounts and then target all clients of the broker

Ashok Jain, Murli Deora, Deepak Parekh played bridge at Pedder road house. 
FY99 
Times Bank had 540 employees, 34 ATMs, 36 branches, Rs 1,300 cr Adv
HDFC Bank had 820 employees, 77 ATMs, 57 branches, Rs 1,400 cr Adv

Times Bank Rs 35 cr IPO in June 1999 at par listed at Rs 25.
Nov 99 Times Bank was Rs 18 and HDFC Bank was Rs 90.

Paresh, Shashi, Vinod did due diligence at NepeanSea Road empty flat and WadiaGhandy office. Jains got 7.7% stake in HDFC Bank.
Next 3 months the share went from Rs 90 to Rs 225

Rana Talwar - ex StanC with Sabre Capital had acquired Centurion BoP in 2003.
s-i-L of DLF's KP Singh. They had 170 branches in north and 140 in South.


Sent

Thursday, September 28, 2017

turnover


Friday, September 22, 2017

Banks - credit growth, NiM, asset quality

credit growth
Q1FY16
Q2FY16
Q3FY16
Q4FY16
Q1FY17
Q2FY17
Q3FY17
Q4FY17
Q1FY18
SBI
6.8
10.5
12.9
12.6
10.7
7.2
4.1
7.3
0.5
ICICI Bank
15.2
13.3
15.8
12.3
12.4
10.9
5.2
6.7
3.3
Axis Bank
23.5
23.1
21.0
20.5
21.2
18.5
10.1
10.1
11.8
HDFC Bank
22.4
27.9
25.7
27.1
23.2
18.1
13.4
19.4
23.4
IndusInd Bank
23.1
30.6
28.7
28.5
29.7
26.4
25.1
27.9
24.3
Federal Bank
10.1
5.0
9.8
13.3
19.3
27.2
32.0
26.2
29.1
NiM
Q1FY16
Q2FY16
Q3FY16
Q4FY16
Q1FY17
Q2FY17
Q3FY17
Q4FY17
Q1FY18
SBI
3.0
3.0
2.9
3.0
2.8
2.8
2.8
3.1
2.4
ICICI Bank
3.5
3.5
3.5
3.4
3.2
3.1
3.1
3.6
3.3
Axis Bank
3.8
3.9
3.8
4.0
3.8
3.6
3.4
3.8
3.6
HDFC Bank
4.3
4.2
4.3
4.3
4.4
4.2
4.1
4.3
4.3
IndusInd Bank
3.7
3.9
3.9
3.9
4.0
4.0
4.0
4.0
4.0
Federal Bank
3.1
3.1
3.0
3.3
3.3
3.3
3.3
3.4
3.1
gNPA
Q1FY16
Q2FY16
Q3FY16
Q4FY16
Q1FY17
Q2FY17
Q3FY17
Q4FY17
Q1FY18
SBI
4.3
4.2
5.1
6.5
6.9
7.1
7.2
6.9
10.0
ICICI Bank
3.7
3.8
4.7
5.8
5.9
6.8
7.9
8.7
8.8
Axis Bank
1.4
1.4
1.7
1.7
2.5
4.2
5.2
5.0
5.0
HDFC Bank
1.0
0.9
1.0
0.9
1.0
1.0
1.1
1.1
1.2
IndusInd Bank
0.8
0.8
0.8
0.9
0.9
0.9
0.9
0.9
1.1
Federal Bank
2.6
2.9
3.2
2.8
2.9
2.8
2.8
2.3
2.4

Stats