HDFC Bank’s transformation journey is a holistic approach that will not only add new digital platform capabilities, but also look at strengthening as well as replacing our legacy systems, bringing in new-age skill sets, and strengthening the overall security environment, the lender said on Saturday.
“We are also working to enable new age consumer experiences by partnering with modern neotechs. Under our technology transformation agenda, we are investing to ‘Run the Bank’ as well as ‘Build a Future-ready Bank’, he observed, Atanu Chakraborty, chairman of the bank said at its 28th annual general meeting.
Chakraborty said that over the course of the last year, the lender had worked closely with the regulator to ensure adherence to the highest standards of compliance. “We are happy to share that the restrictions on our bank are completely lifted following the progress we have made on our technology investments, processes and governance,” the chairman said.
Meanwhile, the proposed merger of HDFC Ltd with HDFC Bank has received a ‘no objection’ from the Reserve Bank of India (RBI), subject to certain conditions.
The merger has also been approved by the Pension Fund Regulatory and Development Authority (PFRDA), along with a no-objection from the stock exchanges. Approvals are awaited from Competition Commission of India (CCI), the National Company Law Tribunal (NCLT) and the shareholders and creditors of the entities.
“Housing finance is going to be a huge growth opportunity and one of the key drivers of India’s GDP over the next decade. With the advantage of lower cost of funds and the strong distribution network that we have built, among several other factors, there is huge merit in seizing this opportunity. A large and more stable balance sheet that the merger would create, would also enable us to step up our exposures and facilitate higher credit growth in the economy,” Chakraborty said.
On the business side, HDFC Bank is planning to increase its presence in the semi-urban and rural areas of the country. The bank is looking at opportunities to further expand the current network of over 6,000 branches and customer base of 70 million.
“Given the anticipated resurgence of growth in GDP, the huge scale of the banking opportunity in India, the enormous strength of our franchise and our resilient balance sheet, we believe that we are extremely well poised to leverage the immense opportunities that lie ahead of us,” the chairman said
To ensure that incentive structures are aligned with the bank’s objectives, HDFC Bank has introduced Restricted Stock Option Scheme for a much larger number of employees. “That will give them a strong sense of connect with the bank,” Chakraborty said.