HDFC Bank eager to expand global presence

HDFC Bank, which is set to overtake India's largest private sector bank ICICI in branch network by merging Centurion Bank of Punjab with itself, is now keen to expand overseas to tap the non-resident Indian market.

"We have applied for licences in Bahrain and Hong Kong. We have a representative office in Dubai, while CBoP has one in Canada," HDFC Bank Managing Director Aditya Puri said.

Recently, the bank said it will raise Rs 4,000 crore (Rs 40 billion) through the medium term note programme overseas to fund global expansion.

Its peer, ICICI Bank, which has the first mover advantage, is present in 18 countries through rep offices, branches and subsidiaries. International operations comprises 23 per cent of ICICI Bank's total assets as on December 31, 2007.

Puri

said the HDFC bank also has agreements with banks in Africa, which would help it in its international operations.

"We will be offering structured products to the global non-resident Indians and also intermediate short term trade."

The proposed merger with CBoP and the possibility of its current Chairman Rana Talwar joining HDFC Bank board as non-executive director would help in realising this aspiration.

"At some stage we have to go overseas and the expertise of Rana Talwar in running international banks will help us," said Housing Development Finance Corp Chairman Deepak Parekh, a significant shareholder of HDFC Bank.