HDFC’s Business Model



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Code : BSM0003

Year :
2003

Industry : Banking, Insurance and Financial Services

Region : India

Teaching Note:Not Available

Structured Assignment : Not Available

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Abstract: In the late 1990s, to exploit the synergies brought by universal banking, major banks in Europe and America merged to form leading banks in the world. The trend of consolidation hit even the Indian markets. In 2002, Industrial Credit and Investment Corporation of India Ltd (ICICI), one of the leading development financial institutions in India, reverse merged with its subsidiary ICICI Bank, to become the second largest bank in India. However, Housing Development and Finance Corporation (HDFC), India's leading housing finance company in terms of deposits and loan disbursements, positioned itself as a group of companies with each subsidiary offering specialised products. It focused on generating synergies of universal banking by cross-selling its products across its subsidiaries without actually merging into a single entity.

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Pedagogical Objectives:

  • To highlight the emerging trend of universal banking in Europe and America and the rise of consolidation in the Indian banking industry
  • To discuss HDFC’s strategy to generate the synergies of universal banking by cross-selling its products through its various companies, each selling some specialised products

    Keywords : Housing Development and Finance Corporation; Corporate Strategies Case Study; HDFC; Development financial institution; Indian housing scenario; Universal banking; Interest and interest rate; Industrial Credit and Investment Corporation of India Ltd; ICICI; Subsidiaries; mergers and acquisitions; Core competencies; Credit Information Bureau (India) Ltd; CIBIL; Mutual fund; Statutory liquid and cash reserve ratios; Cross-selling

    Contents :
    » HDFC AND ITS SUBSIDIARIES
    » HDFC’S CORE COMPETENCIES
    » HDFC AS A SINGLE PRODUCT COMPANY


    Case Introduction >>


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