HDFC Bank has emerged as the fastest-growing Indian brand, recording 296 percent growth over the past five years, according to a report.
HDFC Bank’s brand value over the past five years has increased almost 300 percent while it has recorded a compound annual growth rate of 31.7 percent over the same period. Its valuation, which stood at $1,223 in 2014, has now increased to $4,844, according to a report by brand consultancy Brand Finance.
The Mumbai-headquartered bank, which began operations in 1994, is placed 34th in the world’s top 100 fastest-growing brands by value.
The only other Indian firm to make the top 100 was the information technology giant Infosys, which sits 74th. Infosys has recorded 184 percent growth over the past five years, going from $2,291 in 2014 to $6,501 in 2019.
Significantly, the Indian bank has followed a clutch of Chinese finance companies in the list to emerge as the leading non-Chinese financial firm.
Shanghai Pudong Development Bank is the leading banking firm in the list—22nd overall—with a $13,252 million brand value, having registered 37.8 percent growth over the last five years. Bank of Beijing (26th), China CITIC Bank (28th), and China Merchants Bank (29th) are the other Chinese banking firms ahead of the sole Indian entry from the sector.
“Outside of China, India’s HDFC Bank is the fastest growing banking brand, seeing a 296 percent five-year brand value growth rate (CAGR 32 percent),” Brand Finance said in its report. “Over the last few years, the bank has focused on its digital offering, resulting in an influx of customers from the burgeoning younger generation,” it added.
However, the rise of Chinese financial institutions has been aided by government restrictions which may not continue for long. Meanwhile, the ongoing trade dispute between the United States and China poses another threat to their dominance.
“Chinese banks have thrived in the face of turbulent times, shielded by implicit government assurances and benefitting from servicing large state-owned enterprises. A looming question, however, is how long they may continue to enjoy these comfortable conditions,” Alex Haigh, valuation director, Brand Finance, said in the report.
“With the US-China trade war reaching peak tensions, Chinese banks may have to look for completely new expansion strategies to continue on their steep trajectory of growth,” he added.
The list is dominated by Chinese and American firms with 39 companies from each country in the top 100. In combination, the 78 firms from the world’s top two economies account for 88 percent of the total brand value.
First Published: IST