NEW DELHI: In his first address after the merger of HDFC Bank with a mortgage lender, Sashidhar Jagdishan, managing director and CEO of the private lender, said the combined entity would grow at such a high rate that it could create a new HDFC Bank every four years.
Sharing a vision for the future, Jagdishan said the lender will transform from a bank to a technology company delivering banking services to the customers. High demand for financial services driven by a sharp rise in the country’s gross domestic product (GDP) will fuel HDFC Bank’s growth.
“India’s GDP is expected to grow from $3.5 trillion to $8 trillion in the next decade. The runway for financial services and mortgage, which are so underserved and under penetrated, is going to be very large,” said Sashidhar Jagdishan, welcoming employees of mortgage lender HDFC.
“HDFC Bank - the combined entity - with a large and growing distribution and customer franchise, more than adequate capital, healthy asset quality and profitability, will be best positioned to capture growth. The pace at which we aim to grow - we could be creating a new HDFC Bank every 4 years,” he added.
As a result of the mega-merger of HDFC Bank and HDFC, around 4,000 employees have now become part of the bank. The boards of HDFC Bank and HDFC, in meetings held on Friday, approved July 1 as the effective date of the merger.
“The vision that we have laid out for ourselves in reimagining our technology architecture will make us a ‘Technology company’ which is into banking! You will be proud of the same when it gets unveiled over the next three years,” he added.
The lender aims to add over 1,500 branches every year and will continue to invest in new technologies and expansion. “We will be adding 1500+ branches every year for some years to reach out to the burgeoning middle and upper segment of this vast country,” he added.
The decision for the merger was spurred by the right timing, both from an ‘Economics’ and a regulatory perspective, he added. After the merger, HDFC Bank has become the world’s fourth-largest bank in terms of market capitalisation. The low penetration of home loans and financial services presents immense potential for growth, he said.