Nov 22: HDFC Bank’s Rise, India’s ORS Crackdown

In really sad and unfortunate news - an IAF HAL Tejas aircraft (used in combat) nosedived during a Dubai Air Show and crashed, killing the pilot. A court of inquiry has been set up to ascertain the cause of the accident. There were allegations of a Tejas aircraft experiencing an oil leak while on display at the air show on Thursday, but these were refuted by Press Information Bureau. We don’t know if this was the same crashed aircraft.

Now, let’s get into the Dispatch! 🚀

Today’s reading time is 6 mins.

Indian stock market closed 0.5% lower on Friday, snapping its two-day winning streak amid weak global cues. Sharp declines led the downturn in key finance heavyweights like HDFC Bank and ICICI Bank.

From Housing Dreams To Banking Dominance: HDFC’s rise to becoming India’s most valued brand didn’t begin with a bank, it began with a housing crisis. In 1977, when home loans were nearly impossible to secure, HDFC Ltd stepped in with a structured, disciplined lending model that helped millions of middle-class Indians buy their first homes. That early trust and credibility would later become the foundation of its banking empire.

The Birth Of HDFC Bank: India’s economic liberalisation in the early 1990s opened the doors for private banks. HDFC seized the opportunity, receiving RBI approval in 1994 and launching HDFC Bank in 1995 under the leadership of Deepak Parekh and the bank’s first MD, Aditya Puri. Their philosophy was clear: grow cautiously, stay technologically ahead, and keep the balance sheet clean.

That Strategy Built A Powerhouse: HDFC Bank invested heavily in technology long before “digital banking” became a buzzword. Its focus on retail banking, credit cards, SME lending, and payments helped it scale steadily without compromising on risk discipline. Whether through banking correspondents for underserved regions, e-Mitra kiosks, or innovations like Xpress Car Loans, HDFC Bank differentiated itself by solving real customer problems. Initiatives like “Vigil Aunty” also strengthened its brand identity, making security and trust easy to understand for millions of users.

The 2023 Merger: The merger of HDFC Ltd with HDFC Bank in 2023 created a financial giant unmatched in size and scope. It combined the country’s largest housing finance lender with its most efficient private-sector bank, giving the institution unparalleled distribution, low-cost deposits, and a full-stack financial services portfolio. This consolidation wasn’t just operational, it symbolised the union of two of India’s strongest trust-driven brands.

Becoming India’s Most Valued Brand: According to the 2025 Kantar BrandZ report, HDFC Bank is now India’s most valued brand, with an 18% jump in brand value to around $45 billion, overtaking even TCS. Its position is built not on aggressive marketing, but on decades of consistency, credibility, and meaningful innovation.

A Crackdown On Misleading Labels: India’s food safety regulator, FSSAI, has launched a nationwide crackdown on drinks that misleadingly use the term “ORS” on their labels. Over the past few years, dozens of fruit-based beverages, electrolyte drinks and ready-to-drink products have casually slapped on the three-letter tag, hoping to borrow credibility from a medically essential formulation. But the regulator has now made it clear: unless a product meets the exact composition of a real Oral Rehydration Solution, it cannot use the ORS name, in any form, with any prefix or suffix.

Why The Term ‘ORS’ Is Not Just Branding: Unlike a typical commercial beverage, ORS isn’t a lifestyle drink; it’s a life-saving medical solution. It works only when made in a specific ratio of glucose and electrolytes. Deviate from this formula and the effect can reverse, instead of rehydrating, high-sugar drinks can worsen dehydration, particularly during diarrhoea. Doctors have long warned that many so-called ORS drinks in the market contain far too much sugar and too little sodium and potassium. For children, especially in rural or low-income households, this mix-up isn’t just misleading; it can be dangerous.

What FSSAI Has Ordered: In mid-October, FSSAI issued a directive stating that no food or beverage product may use the word “ORS’’ unless it adheres to the medical formulation set by Indian and global health standards. By late November, the regulator instructed all states and Union territories to remove such products from shelves, including chemist stores, supermarkets, general trade outlets and e-commerce platforms. Importantly, the order does not apply to genuine ORS, which is classified as a drug and sold in sachet form.

Why This Matters For Consumers: The action illustrates a bigger problem: the increasingly blurry line between health branding and real medical efficacy. With wellness drinks crowding the market, consumers often trust labels more than ingredients. The ORS crackdown is a reminder to pause, read carefully and reach for medically approved sachets during dehydration, not colourful bottles promising instant relief.

A Wake-Up Call For The Industry: For beverage makers, this signals a tightening of accountability. Health-coded marketing will now face closer scrutiny, and rightly so. When a product is tied to something as critical as rehydration therapy, accuracy isn’t optional, it’s non-negotiable. 

Adani Green Expands Via New Entities: Adani Green Energy has established two new step-down subsidiaries in Gujarat to strengthen its renewable operations. This move aligns with the company’s strategy to accelerate its green energy footprint and deepen its clean-power business. The newly formed entities will support both solar and wind power development, boosting scale.

Tata Chemicals Invests ₹910 Cr To Expand Plants: Tata Chemicals has approved a ₹910 crore investment to expand its manufacturing capacity at two plants: ₹135 crore for dense soda ash at Mithapur (Gujarat) and ₹775 crore for precipitated silica at Cuddalore (Tamil Nadu). The board greenlit these plans to boost production of its core chemical products. This expansion is part of the company’s broader strategy to scale its industrial footprint. Despite this large capex, the company’s shares dipped slightly on the BSE.

Afghanistan Seeks Indian Investment: Afghanistan is offering Indian investors steep tax breaks, duty-free raw materials, and free land to lure investment into sectors like mining, agriculture, IT, energy, and textiles. Its Commerce Minister, on a visit to New Delhi, indicated inclusive business opportunities and proposed five-year tax exemptions for new industries. The country also plans to restart air cargo services with India, strengthening trade ties. These incentives aim to rebuild Afghanistan’s economy while drawing in foreign capital.

Flipkart Festive Sale Boosts Walmart International: The timing of Flipkart’s “Big Billion Day” sale gave a meaningful lift to Walmart International, which posted 10.8% revenue growth to USD 33.5 billion in Q3 FY26. E-commerce sales within the segment jumped 26% while the advertising business surged 34%, both aided by Flipkart’s event. However, Walmart cautioned that the event’s timing may weigh on Q4 growth.