Giant on the Move

The merger of HDFC Ltd with HDFC Bank provides immense opportunities

- ANAND ADHIKARI

A NEW WAVE of technology transformation and product strategy is sweeping through the corridors of the country's second-largest bank. Under Managing Director and Chief Executive Officer Sashi Jagdishan, who took up the top job in October 2020, HDFC Bank is determined to evolve into more than just a banking institution. The first big step towards realising that dream was finalised on July 1 when the bank's parent, HDFC Limited, merged with it to create a financial sector giant.

The bank does not see the merger as just a consolidation; it aspires instead to become a dynamic "technology company” that is into banking. To do this, it is banking on the power of bundling-integrating home loans with its bouquet of banking products. But that's not all. The private sector bank is setting its sights on creating a brand new HDFC Bank every four years.

In an internal communication to employees after the merger, Jagdishan said the runway for growth would be large for a long time to come. "The bank, with its superior digital platform and digital journeys, will have the propensity to upsell to the home loan customer with a complete bouquet of the group's products across payments, savings, borrowings, investing, insurance, and trading," he said.

Providing a glimpse of the possibilities, Jagdishan said the bank could now offer an array of products like a savings account for all banking needs, a personal loan for upfront contribution to the builder, a consumer durables loan, life insurance to protect the family in case of any eventuality, home insurance to safeguard against fire and structural damage, a credit card, a systematic investment plan, and EMI payments to create wealth, which can all be accessed with a single click.