Business Units or Product Lines

HDFC Bank operates primarily in three business segments: Retail Banking, Wholesale Banking, and Treasury. Retail Banking includes personal loans, auto loans, and credit cards. Wholesale Banking involves services to corporate clients like working capital finance, trade services, and investment banking. Treasury operations involve liquidity management, foreign exchange, and trading operations.

Business Models for Each Product Line

Retail Banking generates revenue through interest on loans, fees from credit card transactions, processing fees, and penalties. Wholesale Banking earns from interest on loans, fees on advisory services, and transaction banking services. Treasury income comes from trading in bonds, foreign exchange, and managing the bank's investment portfolio. Major expense categories include interest paid on deposits, operating costs, and provision for loan losses.

Future Opportunities for Growth

Opportunities for growth include expanding digital banking services, increasing penetration in rural markets, and leveraging technology for operational efficiency. Additionally, there is potential in growing the credit card segment and personal lending due to rising consumer spending in India.

Potential Major Risks

Major risks include regulatory changes affecting banking operations, rising non-performing assets due to economic downturns, cyber-security threats, and increased competition from non-banking financial companies and fintech firms.