Highly insightful video to actually understand what HDFC Bank is doing with their tech overhaul after all the flak they have faced.
Disc : Invested.
Moneycontrol: Exclusive Interview | At HDFC Bank we are a play on the GDP. We don’t chase a particular mix, says Kaizad…
HDFC bank to raise funds through infra bonds
The gorilla is back with a bang. https://t.co/ripxwakGeu
— Ira Dugal (@dugalira) September 29, 2021
HDFC Bank issued 4 lakh cards in the last month since the embargo was lifted. - BloombergQuint
Issues at HDFC bank again.
Also read this comment from a “senior banking analyst”!
“It is fine that the bank did not report every case of forged documents to police. What I cannot wrap my head around is how it was charging a processing fee from customers who were not sanctioned any loans. It could have said in its internal checks that those loan applications were rejected," said a senior banking sector analyst seeking anonymity.
It is one issue and w.r.t the lacs of applications banks scrutinize daily, if these are very few, minuscule, and if it is a bank’s right to choose an appropriate action within the legally available choices, I guess any and every bank would do the same. Considering the lengthy process of reporting, follow ups, respective personnel being present, up until the verdict. So a penalty for the misdemeanor does not come as a surprise.
If this is an issue, what we should call the incidents that happen in PSU banks in almost every branch. We have heard more such incidents and scams in PSU banks than in private sector banks.
And the senior banking analyst cited may not be equipped with the knowledge of law. So technically, what they did could be correct and well within their legal rights.
Disclosure - Have a tracking position and thinking of investing.
Can someone verify the kind of news. If HDFC Bank is involved in such kind of things, its not a good sign.
Disc : Invested
The case could be genuine, but no proofs have been reported by the paper, so I will take this with a pinch of salt. Also, I think this is the first time, I am hearing about this paper, so I don’t know about the standard and integrity of the publication. I would also call this unsubstantiated reporting, as they did not provide any proof but were concerned to write an article. If they could write so much, they should have provided the most important piece of proof at least, if the issue has indeed been escalated to the bank chairman himself.
At the end of the day, banking business, as we all know, is not about one single customer’s experience, great or bad. It is much bigger than that. One can have subjective opinions depending on his experience but if the collective experience is different, then it is business as usual. What constitutes collective experience if not the cumulation of individual experiences, but that has to be quantitative in nature, like the majority of reviews on an app. So these are isolated incidents, even if proved to be correct, which do not bear any effect on any business, particularly banking, as each person’s reason to bank is different.
Have a position.
Absolutely. you are bang on.
What got me interested more in the article was, the location as Gurgaon & not a Tier 3/4 city.
If this happened in Gurgaon a metropolitan city. Am sure, getting it verified is more easier than anything else.
Hence, I also dont trust it though, would have my eyes and ears open for these and of information.
Just Fyi - I have shared it in my known circle, who are in banking, hoping to get some concrete info on this.
HDFC Bank maybe well within its right to recover credit card dues from HDFC Bank account of the holder as per an order of the National Consumer Disputed Redressal Commission (NCDRC), as per the below article.
I know for a fact tat HDFC Bank is very bad in cancelling cards. Even if you cancel, they might hold on to the card and keep charging additional fees. Personally, credit cards terrify me though I do have one. Also, banks do use 3rd party recovery agents to harass customers for money. That is true and unfortunately in India we do not have proper customer protection agencies.
Hi,
This is to add my observations about HDFC Bank being a customer for the past 15+ years:
- There were web site outage issues which were reported in media during past few years, but not to the gravity as expressed in many forums/news. Most of the time there was delay in NEFT payments being debited and credited to other bank’s accounts little late than expectations. Occasionally there was delay in moving from one page to next or in receiving OTP.
- It took me more than 10 working days to get PPF a/c opened through normal channel, i.e. by submitting paper based form, which ideally should have been less in my opinion.
- They promptly close the mutual fund investment account or any other account for that matter without any delay. It was done within 1-2 working days most of the time.
- Staff in the branch is co-operative and reasonable and they do understand our issues and / or concerns, if any, and guide us. This is on par with any other private bank in our area i.e. North Mumbai.
- I have faced similar issues of web site not loading, FD page not working, OTP delays with ICICI Bank, but to my surprise, I have not seen RBI taking any action against ICICI Bank. FD page not working is very common across multiple years. (Note: ICICI Bank is better in terms of its online usability, fast service, promptness, but I am just highlighting that there are issue with every bank.)
- We have many instances of ICICI Bank ATM / Debit card being cloned and money being stolen for which some customers in our area had to file FIR and visit ICICI bank multiple times to get the money credited back. Though it is done within 45 days but still there are multiple visits to the branch required. I have not seen such instances of debit card being duplicated/cloned with HDFC bank in our area. That puts HDFC bank ahead of other private peers in our area.
- Recently for one of my friend, it took almost 15+ working days just to get saving account closed in IDBI bank, after followups. That shows that, IDBI bank do not have basic processes in place just to close the existing account!! Hope that, RBI will take action against such errant banks soon…
- There is no security guard outside ATM of many banks in our area. Only notable exception is HDFC Bank, as they have ATM inside the branch and there is security guard almost all the time. It makes me wonder why other banks can not do this since their ATMs are also attached to the branch in our area, almost for 60% cases.Again, HDFC bank is better than its peers in this case, at least in our area.
I am just trying to put the right perspective here. Every coin has two sides, but some times people look at just one side of the coin since other side is ignored.
While taking action against any bank, I believe that, Central Bank should consider all facts and evidences rather than going by media/news/whatsapp chats/messages, so that there will be action against all errant banks and not just few top banks.
(Disc: Invested in HDFC bank and also ICICI bank earlier.)
Hi,
I have also done some calculations, and EPS growth for 3 Yrs, 5 Yrs, 7 Yrs and 10 Yrs is 14.64%, 15.69%, 16.41% and 18.64%, and if we consider future EPS growth of about 16-17%, then Projected EPS after 3 years is about 103.
I think, probably investors believe that, after the economic recovery, HDFC bank will grow slower than its private peers, hence current CMP looks reasonable.
We need to see whether that can happen or not? To a certain extent, it can happen that, other private banks will take more risk than HDFC bank to grow the book faster, and may get higher valuations than HDFC bank. In the past, I have seen that, this generally happens for a while and then HDFC bank catches up in terms of valuations.
I will be watchful of its NIM and Net NPA both going forward, and will keep comparing it with private peers.
Disc: Invested in HDFC bank for long period.