HDFC Private Bank

About

• In 1994, the Housing Development Finance Corporation founded HDFC Bank as a subsidiary incorporated as HDFC Limited.
• HDFC Bank Ltd is a listed Indian banking and financial services firm. As of March 2020, HDFC operates through 5416 bank outlets including overseas operations in Bahrain, Hong Kong, Dubai and Kenya. HDFC Bank implements technology for digital transformation in banking services and began Virtual Relationship Management (VRM) services in 2017. 
• HDFC Private Bank Ltd is within the retail banking segment of HDFC Bank Ltd.  Private  banking and wealth management services are offered through two business segments, Distribution and Private banking. In addition, two of the HDFC group’s subsidiaries offer services to private banking and wealth management clients, comprising HDB Financial Services (HDBFS) and HDFC Securities.
• As of March 2020, the entire bank has 116,971 employees. According to Asian Private Banker, in 2019, HDFC Private bank has $ 10.5 billion in assets under management and 300 relationship managers.
• The private bank offers services to HNI and UHNI. 

• HDFC Private Bank is a registered mutual fund distributor with the Association of Mutual Funds in India (AMFI). HDFC Securities is a registered investment advisor with the Securities and Exchange Board of India (SEBI). HDB Financial Services is a Non-Banking Financial Services Company. 

Key staff

Rakesh Singh-Group Head- Investment Banking, Private Banking, Capital Markets and Financial Institutions (April 2011 to present) Rakesh has over 23 years of experience with an MBA in Finance from Institute of Management Technology, Ghaziabad. LinkedIn

Guneet Singh- Executive Vice President, Business Head, Private Banking Group (October 2019 to present) Guneet has approximately 20 years of experience and has studied at the International Management Institute and Acharya Narendra Dev College. LinkedIn

Sampath Kumar- Group Head, Liability Products, Third Party Products, ATM, Managed Programs and Non-Resident Business (August 2000 to present). Sampath has over 25 years of professional experience and is an alumnus of the University of Madras, Tamil Nadu. LinkedIn

Pranab Uniyal- Senior Vice President, Product Head – Private Banking Group Investment (November 2018 to present) Pranab has over 16 years of experience and studied at the Indian Institute of Management, Calcutta.  LinkedIn

Services

• Investment services- as a licensed Mutual Fund Distributor, HDFC Private Bank offers investment execution services in equities, fixed income and alternative asset classes.Through HDFC Securities, portfolio management distribution services are rendered for the private bank. Dedicated relationship managers within HDFC Securities provide investment advice to clients on the products. 
• Lending- The subsidiary HDB Financial Services offers asset finance and collection services as a non-banking financial company.

Investment philosophy (for firm)

We did not find a written investment philosophy for the HDFC Private Bank. However, it is indicated that the product research process is fundamental based with an ethical approach and understanding that markets are dynamic. 

We did not find a written investment philosophy for the HDFC Private Bank. However, it is indicated that the product research process is fundamental based with an ethical approach and understanding that markets are dynamic. 

In an interview with the MMI Team on the 12th of December 2012,  Abhay Aima the outgoing Group Head, Private Banking, NRI Business & Third Party Products talks about HDFC Private Banking and Wealth Management. In the interview, Abhay speaks about their product offerings, target market and talent acquisition strategy. Aspects of the discussion reveal that the firm’s investment philosophy under his leadership is centered on knowledge and processes. This is gleaned from his explanation of the firm’s talent acquisition strategy, in which he shares that product knowledge and processes are a prerequisite to relationship management at HDFC. Abhay explains that products which are not understood are not included in the investment universe for execution or advice by the bank. Abhay emphasizes the importance of holding the core values of a wealth management business constant, succumbing to change only where there is a problem or mistake to be rectified. 

Media

Flurry of senior-level exits at HDFC bank points to likely revamp,  Mint, 15th July 2020

https://www.livemint.com/companies/people/flurry-of-senior-level-exits-at-hdfc-bank-points-to-likely-revamp-11594772805398.html

In the year 2020, there were a number of senior-level exits at HDFC bank including that of the long-time Group Head of Private Banking, Abhay Aima who took an early retirement.

Analyst questions

1. What is the investment philosophy of HDFC Private Bank? Is this shared with clients in written form? 
2. Within the overall investment philosophy, please share your philosophy on selecting funds. What is the most important criteria?
3. How do you envisage the acceptance of technology in product distribution and sales across client segments? Especially in view of data privacy concerns and the social distancing brought about by the pandemic.