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A Cut Above – BW Businessworld

A Cut Above – BW Businessworld

Rank 3- HDFC Bank 

Sasidhar Jagdishan, MD and CEO 

Overall Avg. Score: 3.03 

Revenue: Rs 155,885 crore 

Buoyed by high scores for its work culture, trustworthy leadership and sustained growth, HDFC Bank, the largest private sector bank (by balance sheet size) in India, jumped two places to sit pretty at the third position in the BW Businessworld Most Respected Companies (MRC) rankings for FY21. In the previous MRC rankings of FY19, it was ranked fifth.  

In its latest annual report, HDFC Bank rightly sums up the reason for being a successful and trustworthy business. It says, “At HDFC Bank, good corporate governance is at the heart of responsible leadership, enabling us to inspire trust among stakeholders while fulfilling aspirations of customers through good times and tough.” It goes on to add that the business is guided by the belief in “shared prosperity”. “We leverage balance sheet strength with an unwavering focus on asset quality to deliver sustained growth while making a meaningful difference to the lives we touch,” it says.   

Stellar financial performance 

The financial parameters reported by the bank for FY21 are testament to its work philosophy and belief. The net profit for the year ended March 31, 2021 jumped 18.5 per cent to Rs 31,116.5 crore compared to the previous closing of March 31, 2020. The consolidated net profit was Rs 31,833 crore, up 16.8 per cent over the previous fiscal year. The full year income (consolidated) in 2020-21 increased to Rs 155,885 crore from Rs 147,068 crore in the preceding year.  

On the asset front, the bank’s gross non-performing assets as of March 31, 2021 stood at 1.32 per cent of the gross advances, slightly up from 1.26 per cent in the year ago period. In absolute value, the gross advances were worth Rs 15,086 crore at the end of FY21, down from Rs 12,649.97 crore. Net NPAs were 0.40 per cent (Rs 4,554 crore) as against 0.36 per cent (Rs 3,542 crore). Total balance sheet size as of March 31, 2021 was Rs 17,46,871 crore as against Rs 15,30,511 crore as of March 31, 2020, a growth of 14.1 per cent. CASA deposits for HDFC Bank grew 27 per cent with savings account deposits at Rs 4,03,500 crore and current account deposits at Rs 2,12,182 crore.  

Strong legacy 

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“One of our biggest strengths has been the legacy of over a quarter century. Our iconic ex-Managing Director, Aditya Puri created an institution with strong foundation and fundamentals. It is a huge advantage as well as a privilege to inherit and build upon this. Thanks to his leadership, we today have a strong balance sheet with among the lowest NPAs in the banking industry and strong capitalisation. This has helped us to lend even during difficult times, build market leadership and deliver shareholder value without compromising on our commitment to society and the environment,” said Sasidhar Jagdishan, MD and CEO in his message to the shareholders.  

With an employee strength of 1,20,093, HDFC Bank aspires to be the employer of choice. It promotes an inclusive and meritocratic culture that ensures engagement, progress and care. “We have also been certified as a ‘Great Place to Work’ for 2020,” Jagdishan said.  

Jagdishan underlined the ‘clearly identified’ growth engines. These are corporate banking, commercial banking (MSME) and rural, government and institutional banking, private banking, retail assets and payments. These, the CEO said, need to be driven by the delivery channels of branch banking, tele-sales/ service/ relationship and digital marketing.  

“These growth engines would be powered by our robust technology and digital platforms. These growth engines will account for the bulk of our future investments and can be broadly classified as business verticals and delivery channels,” Jagdishan said.  

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