Indian banking and financial services company, HDFC Bank has recently raised its share price by over 2% to $1,625 per share, a move that comes on the back of its attempt to expand its rural reach to over 200,000 villages in the next two years.

Rahul Shukla, Group Head – Commercial And Rural Banking, HDFC Bank, stated in a press statement that the rural and semi-urban markets in India are often overlooked and can offer the Indian financial system with long-term growth prospects.

Incidentally, the bank’s announcement was made on the same day when India’s Finance Minister, Nirmala Sitharaman encouraged banking firms to increase their rural footprint at an event hosted by the Indian Banks' Association. She stated that at present many panchayats do not have a bank branch.

Reportedly, HDFC also intends to employ 2,500 people in the coming six months.

According to sources, the initiative would allow the bank to aid one-third of rural India while also spreading its leadership in lending to micro, small and medium enterprises (MSMEs). HDFC Bank currently provides its products and services to MSMEs across 550 districts.

As of June 30, approximately half of the bank's 5,653 branches were closed in semi-urban and rural India, as well as 15,912 banking correspondents. Meanwhile, its commercial and rural banking loan book rose 25% year-on-year.

Siji Philip, Senior Research Analyst at Axis Securities, said that the jump in HDFC Bank stock prices in today's trading results from its management's positive comments on future growth and its announcement to expand rural banking in the nation.

She said that HDFC Bank is expected to see positive growth in the current financial year, with a strong revival on the operating performance arena. Growth in the bank’s stock price is also led by a strong market sentiment to some extent, which has prevailed as the fears of a possible third wave of COVID-19 pandemic weakens.

Source Credit - https://www.businessinsider.in/careers/interviewing/news/hdfc-bank-is-looking-to-hire-2500-people-in-the-next-six-months-across-india/articleshow/86549818.cms