HDFC BANK 2.0 : FROM DAWN TO DIGITAL

A story about reinvention and innovation, by a master story teller!

Mr. Rajnish Kumar, Chairman — SBI, launched the book in the presence of other esteemed guests

If there is one organisation in India whose rise is in sync with the rise of India as a nation, it is HDFC Bank. In many ways, HDFC Bank is the true representation of the real India — Young, aspirational, world beater, trendsetter and in-sync with all the latest technological advancements.

Hence, it is a no-brainer that HDFC Bank would make the ideal case study for any writer who wishes to chronicle the journey, the founding principles, the practices and the untold stories of the Indian Banking Sector after Liberalisation, Privatisation and Globalisation.

Tamal Bandyopadhyay’s keen eye for detail, deep knowledge of the Banking industry and an unparalleled storytelling ability made him the ideal choice to astutely chronicle the journey of HDFC Bank from ‘Dawn to Digital’, 7 years after the release of his first book on HDFC Bank, “A Bank for the Buck”.

In his address to the audience, Mr. Rajnish Kumar highlighted the role of HDFC Bank in setting an example for digital banking in India.

In the years since the launch of the first book, HDFC Bank has reinvented and turned itself into a digital bank by driving fundamental changes, leading the way for other Banks to follow to remain relevant. HDFC Bank isn’t just surviving, it is thriving by disrupting itself rather than waiting to be disrupted by Fintech Companies. This warranted a fresh study and Tamal has managed to collate all the information and present it as an entertaining story in his latest book.

HDFC Bank 2.0 is not a reinvention of the earlier book, rather a continuation. However, Tamal has ensured that even if you had missed out on reading his earlier work, you will not miss out on the story. But I highly recommend you to read his first book too, which is another masterpiece!

As a keen follower of the Banking Industry, developments in the field of Blockchain and Artificial Intelligence, the preface had enough fodder for me to take out the time to finish this book at the earliest. I don’t want to spoil the book for other readers by giving out spoilers, but through this post, I wish to highlight certain points which make this a must read book for anyone who is as enthusiastic about disruption and adoption of technology in the Banking sector.

Tamal’s latest book, “HDFC Bank 2.0 : From Dawn to Digital” published by Jaico Publishing House, tells a rather intriguing story of how India’s largest Private Sector Bank took the initiative to become a financial market place and not just remain a Bank, at a time when pundits had predicted the death of Brick and Mortar banks at the hands of VC-funded Fintech Start-ups. This book isn’t a chronological narrative of events, but a never-told-before story of the making of India’s most valuable Bank within 25 years of its inception.

In the book, we learn how under the agile leadership of Mr. Aditya Puri, HDFC Bank has made gigantic strides into the world of digital banking over the past few years. In the foreword to the book, Mr. Nandan Nilekani says that HDFC Bank’s focus on speed, technology, consumer experience, global reach and the application of Artificial Intelligence, remains unparalleled in the industry, which has been explained in more details in the book.

Unlike in traditional banking products where HDFC Bank learns at the cost of others and does not play the role of a pioneer, in digital banking, it has pioneered and continues to lead the way with its fast paced and efficient implementation.

Today, HDFC Bank is the most valuable Bank in India, with the most consistent record of quarter-on-quarter growth. In the book, Tamal tells the story of HDFC Bank (drawing parallels of its rise with the rise of the country as a whole) which continues to march forward, being world-class in a world of unprecedented odds, and that too at a break-neck speed.

With a legendary leader at the helm who has foresight, aggression and flawless execution capability, HDFC Bank has been the earliest adopter of modern technologies in the Indian Banking Sector for digitalisation.

By the use of Artificial Intelligence, HDFC Bank has transformed Customer Service to Customer Experience and Customer Engagement. In 2018, more than 85% of HDFC Bank’s transactions were digital!

While the banking sector has been plagued by bad loans, HDFC Bank’s loan appraisal and risk management practices have ensured that its books remain clean, again setting an example for its competitors. What does it take to say no to your friends who come to you for a loan or how can a bank, known to be averse to taking risks, become the largest bank on the asset business side? This book gives us the answers to all of these and much more, in a way that only a master story teller like Tamal can narrate.

I was lucky enough to be invited to the launch of HDFC Bank 2.0. The book was launched by Mr. Rajnish Kumar, the Chairman & Managing Director of State Bank of India, in the presence of other esteemed guests from the Industry. During the discussion which followed the launch, Tamal made sure that the two bankers (Kumar and Puri) had to step out of their comfort zone to answer some objective and unsettling “stupid questions”, as he puts it.

The launch event lived up to the billing and was as exciting as the book itself. When the heads of India’s largest Public Sector Bank & Private Sector Bank share the stage with a distinguished journalist and story teller like Tamal, one needs to buckle up and wait for some fireworks. As in his books, Tamal asked all the right questions to help the audience gain clarity over some ‘mysterious’ and ‘not to be talked about’ issues. For example, Tamal asked Mr. Puri why he did not give loan to his ‘friends’, Vijay Mallya and Nirav Modi? And not to forget, the rumoured bail-out of Jet Airways by State Bank of India.

Samved Bharadwaj, Founder & Managing Partner — https://msmemitra.com, asking Mr. Kumar & Mr. Puri about their views on use of blockchain technology in the Banking Industry..

I was also fortunate enough to ask the esteemed guests about their views on the use of Blockchain technology for decentralising and securing transactions. While there was no clear cut answer from either Mr. Puri or Mr. Kumar who had earlier highlighted their work on the digital front, could this be because the next wave of disruption by HDFC Bank will be the implementation of blockchain technology? I guess the answer will present itself in the next 3 years and Tamal will give us all the inside stories in HDFC Bank 3.0!

In the meantime, I highly recommend you to read “HDFC Bank 2.0 : From Dawn to Digital by Tamal Bandyopadhyay”, to live the breath-taking untold story of how a “Start-up” has gone on to become India’s most valuable Bank within 25 years of its inception.

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By Samved Bharadwaj, Founder & Managing Partner — MSMEmitra.com

https://msmemitra.com provides financial consultancy, business advisory, strategy consultancy and fundraising services to MSMEs and Start-ups.