Aditya Puri talks to McKinsey about how he built the country's most valuable bank.

1) Filling in the leadership gaps - Aditiya Puri went out looking for people who believed in the story and, most importantly, themselves. HDFC Bank got people from Bank of America, Citi Bank, UBS, Merrill Lynch.

2) Credit should be seperate structure from sales and marketing because if the credit person were to report to sales then sales will always prevail.

3) They put the rigid operating processes with little flexibility for exceptions. If a senior individual wanted to approve a loan above the credit limit, they could, but the individual's neck was on the block.

4) Initially, HDFC bank went in as a corporate bank for -AAA rated companies as there were hardly any delinquencies in AAA rated companies and slowly and steadily built their own risk models.

5) HDFC bank did not do unsecured personal lending, credit cards and project financing for many years and was often described by investors as "boring".

6) It later went on to define the risk & reward parameters for each segment. It made new kind of loans on smaller scale to test the efficacy. Although they were slow with new launch but the product was far better. That's how they made a mark in personal loans and credit cards.

7) Management made many mistakes but they were all small mistakes.

8) After Aditya Puri's trip to Silicon Valley, the bank decided to disrupt themselves and took just 2 months to identify what needed to change. In his words " For the Banks who change faster, its a winner take-all situation.

9) Later they adopted AI and digital underwriting to make quick decisions on large working capital loans for MSME and could reach competence of giving any kind of loans with low turn around time.

10) Over the last 3 years, 10 or more senior leaders have been brought in order to fill in the gaps. The bank added people who understood digital marketing, technology, analytics (unstructured and unformatted data), AI.

11) The outlook for the financial sector looks good as demand will exceed supply. Growth is here to stay.

12) And finally Aditya Puri says "HDFC Bank's success comes from keeping it's business simple"
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