HDFC eyes international expansion under new MD Anup Bagchi

HDFC Bank's incoming Managing Director and Chief Executive Officer Anup Bagchi is expected to pursue a more aggressive international expansion strategy, according to sources familiar with the lender's strategic review. The move comes as the company recognises that its limited overseas presence has constrained its ability to mobilise Foreign Currency Non-Resident deposits, a key funding source for many large Indian financial institutions.

The housing finance giant has historically maintained a relatively modest international footprint compared to its domestic operations, with presence in select markets. This geographical constraint has limited its capacity to tap into FCNR(B) deposits, which allow non-resident Indians to invest in rupee-denominated instruments while hedging currency risk.

Bagchi, who assumes the top role in the coming period, is expected to evaluate expansion opportunities across key markets in Asia and the Middle East, where significant diaspora populations could provide a stable deposit base. Financial institutions with stronger international networks typically enjoy better access to stable foreign currency funding, which supports overall liquidity management and reduces reliance on domestic wholesale markets.

The strategic reassessment reflects broader industry trends, with several Indian banks prioritising global expansion to diversify funding sources and strengthen their competitive positioning. For HDFC, enhanced overseas operations could also support cross-border transaction flows for its non-resident customer base and complement its domestic housing finance business.

Industry observers note that successful international expansion requires navigating regulatory frameworks across multiple jurisdictions and establishing operational infrastructure in new markets, making it a multi-year undertaking for the lender.