HDFC twins merger – Sashidhar Jagdishan, Managing Director and CEO of HDFC Bank, stated on Saturday that the private lender intends to develop at a far faster rate following the merger, which might result in the creation of “a new HDFC Bank every four years.”
In his first address since the merger of HDFC Ltd and HDFC Bank, which took effect on July 1, CEO Sashidhar stated that the lender will add around 1,500 branches annually for several years to expand its footprint across the country.
“The runway for financial services and mortgages, which are so underserved and under penetrated, will be very large.” With a big and growing distribution and customer franchise, more than ample capital, and good asset quality and profitability, HDFC Bank – the combined business – will be best positioned to capture growth. The rate at which we intend to grow – we may be establishing a new HDFC Bank every four years!” Jagdishan stated this in a letter to staff following the merger.
HDFC twins merger
“This is going to be a paradigm shift in how we do business in the future, moving from sales management to relationship management,” he continued. The increased pace of product sales and fewer touch points with customers will be a benefit.
He went on to say that the choice to merge was influenced by the correct moment, both economically and legally. He stated that the bank wishes to capitalise on the bond that the former HDFC Ltd developed with its customers throughout its four decades of business.
According to Sashidhar, the bank’s client base has a poor penetration of the house loan product, and the merger provides an opportunity to expand it.
“The Bank, with its superior digital platform and digital journeys, will have a propensity to upsell to the home loan customer a complete bouquet of the Bank’s and subsidiaries’ products across pay, save, borrow, invest, insure, and trade,” Sashidhar stated.
While welcoming nearly 4,000 new HDFC Ltd employees, he assured them that their jobs and salary will be preserved. “We chose an independent external expert to arrive at formulae to ensure fairness.” “A committee of senior executives from Ltd. and the Bank reviewed the expert’s work and performed management overlays where necessary,” he explained.
He stated that the bank will form a grievance committee to address any issues. “We commit that once you have settled into your roles, the committee will look into any further level adjustments,” he said.