HDFC Bank had a productive period during the first half of 2012 in terms of deposit growth, expansion of the branch network, launch of new products and improving infrastructure. However, there has been a substantial decline in the bank’s operating profit compared to the first half 2011.
The entirety of the bank’s activities focused on serving low and middle income segment in the country that is most needy and vulnerable sector. Despite the volatile market conditions the bank has maintained its fixed interest policy without transferring the burden to the customers.
The re-pricing of existing loans has not been done, keeping the bank’s primary objective in mind. The present loan portfolio of the bank comprises over 75% of home loans for the lower income segment that caters almost 25% of the middle income sector in the housing finance market. These factors have directly affected the bottom line.
While experiencing a challenging situation in balancing customer responsibility and corporate goals the bank has taken necessary steps to implement its strategic plan mainly concentrating few areas.
This includes quality management system, management responsibility in customer focus, planning in resource management and improvement in infrastructure. This has helped the bank to satisfy the customers with efficient service. The bank has got a substantial statutory relief to diversify its products portfolio to extend credit facilities to non-housing needs, which is already implemented is a great comfort in improving balance sheet strength and profitability.
With new branches opened, the bank now serves through 32 branches islandwide. Further it has expanded the mobile banking service covering 136 townships reaching one goal of financial inclusion, which is evident in the wide reach while concentrating more on the people who are in non banking sector. The number of employees has increased by over 20% to provide an efficient service to the customers.
With the new initiatives the bank is moving steadily towards its main vision, which is to become a dominant player in the financial services sector delivering innovative solutions with best-in- industry services and excellence, creating superior long-term shareholder value, fulfilling the objectives of all stakeholders contributing towards the economic development of the country.
The bank also has taken necessary steps with the support of the entire staff to meet the year-end profit and growth targets.