HDFC Bank on Tuesday ruled out merger with its parent HDFC or acquiring smaller banks in the near future, but said it has embarked on an aggressive organic growth path in India and abroad.
The bank is exploring "strategic tie ups" with other banks in New York and London, while planning to open branches in Hong Kong and Singapore, its managing director Aditya Puri said after launching co-branded cards with Idea Cellular in New Delhi.
The bank has presence in Dubai, Abu Dhabi, Kuwait and some African nations.
Subject to Reserve Bank of India's approval, the country's second largest private bank also plans to open 200 more branches this fiscal across the nation, half of which would be in semi-urban and "under-banked" areas, he said.
HDFC Bank now has close to 500 branches and 1,200 ATMs across 219 cities.
The bank is focusing on retail loans to shop-keepers, farmers and SME segment which has huge growth potential.
"There has been 100 per cent growth in loans to shop-keepers and 50 per cent growth in SME segment," Puri said. These two segments comprise 35 per cent of the bank's credit portfolio.
The bank has also tied up with Central Warehousing Corporation and commodities exchange NCDEX for providing loans to farmers against warehouse receipts.
HDFC Bank is not looking at acquiring smaller banks right now, Puri said, adding that there were no plans to merge with HDFC as well. A reverse merger with HDFC would deprive the bank of the tax sops that the housing finance company now enjoys.
HDFC Bank, which had acquired Times Bank six years ago, is not looking for more acquisition now, he said.
Puri also ruled out an immediate move to hike the FII investment limit in the bank from 49 to 74 per cent.
At present, foreign investors (both FDI and FII) have close to 49 per cent stake in the bank.
The bank, which had increased its capital through an ADR issue last year, now has a capital adequacy ratio of over 11 per cent.
Puri said the bank was fully prepared for meeting the stringent Basel-II norms.
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