company profile - hdfc ltd

7/31/2019 Company Profile - HDFC LTD

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Company Profile

Housing Development Finance Corporation Limited (HDFC Ltd.) was established in 1977

with the primary objective of meeting a social need of encouraging home ownership byproviding long-term finance to households. Over the last three decades, HDFC has turnedthe concept of housing finance for the growing middle class in India into a world-classenterprise with excellent reputation for professionalism, integrity and impeccable service.

A pioneer and leader in housing finance in India, since inception, HDFC has assisted morethan 39 Lakh customers to own a home of their own, through cumulative housing loanapprovals of over Rs. 3.73 trillion and disbursements of over Rs. 3.02 trillion as at March31, 2011.

HDFC has a wide network of 304 offices (which includes 74 offices of HDFC's wholly

owned distribution company HDFC Sales Private Limited) catering to over 2,400 towns &cities spread across the country. It also has offices in Dubai, London and Singapore andservice associates in the Middle East region, to provide housing loans and propertyadvisory services to Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs).

HDFC's unrelenting focus on Corporate Governance, high standards of ethics and clarity ofvision, percolate through the organization. Trust, Integrity, Transparency and ProfessionalService are the important pillars of the brand HDFC and most importantly, people - bothemployees and customers - are its brand ambassadors.

Customer satisfaction is the hallmark of all HDFC offerings. The first touch of HDFC's

personalized service begins as soon as a customer approaches HDFC, and over time itprogresses into a long and meaningful relationship. State-of-the-art information systemssupported by strong in-house training programs conducted at its specialized training centrein Lonavla, have equipped HDFC to respond swiftly to the ever-changing customer needsand thereby empower customers in making the right home buying decision. This is whatsets apart HDFC's customer service philosophy - 'With You, Right Through'.

HDFC's specialist team of over 1,600 trained and experienced professionals follows a'single-window concept' for providing smooth and value added services at all stages. Theteam guides the customers right through the entire process of property purchase - be itproperty search assistance, technical support prior to finalizing the property, legal advice

on property related documentation, personalized home loan counseling or providing tailor-made repayment options to suit the customer's specific requirements.

HDFC's wide product range includes loans for purchase and construction of a residentialunit, purchase of land, home improvement loans, home extension loans, non-residentialpremises loans for professionals and loan against property, while its flexible repaymentoptions include Step Up Repayment Facility (SURF) and Flexible Loan Installment Plan(FLIP).


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HDFC also has a robust deposits mobilization program. HDFC has been able to mobilizedeposits from over 10 lakh depositors. Outstanding deposits grew from Rs. 1,458 crores inMarch 1994 to Rs. 24,625 crores in March 2011. In addition, HDFC has received 'AAA'rating for its Deposit products for highest safety from both CRISIL and ICRA forseventeen consecutive years.

Over the years, HDFC has emerged as a financial conglomerate with its presence in theentire gamut of financial services including banking, insurance (life and non-life), assetmanagement, real estate venture capital and more recently education loans.

Today, HDFC is recognized as one of the Best Managed Companies in India and is amodel housing finance company for developing countries with nascent housing financemarkets. HDFC has undertaken several consultancy assignments in various countriesacross Asia, Africa and East Europe to support and establish their housing financeinstitutions.

At HDFC, 'Corporate Social Responsibility' has always been an evolving concept, akin toits 'learning by doing' philosophy. As part of its social objectives, HDFC has alwaysendeavored to contribute to economic development and social upliftment of the weakersections of society and has professionally nurtured each of its social initiative as aninvestment. HDFC has undertaken development oriented work and supported several socialinitiatives in the areas of education, child welfare, medical research, welfare for the elderlyand the handicapped among several others.

HDFC is how millions of Indian families spell the word 'Home' as the brand not only offersHousing Finance, but also Total Housing Solutions.

The HDFC Advantage

Pioneers of Housing Finance in India with over 34 years of lending experience. Widest range of home loan & deposit products. Vast network of over 304 interconnected offices which includes 3 international

offices. Most experienced and empowered personnel to ensure smooth & easy processing. Online loan application facility at www.hdfc.com and across-the-counter services

for new deposits, renewals & repayments.

Counselling and advisory services for acquiring a property. Flexible loan repayment options Free & safe document storage.

Housing Finance Sector


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Increase the return on equity each year by 1 percentage point in order to maximise

shareholder value;

Maintain gross Non-Performing Assets (NPAs) below 1%;

Consistently grow the loan book;

Improve operational efficiency by consistently bringing down the cost to incomeratio.

Organization & Management

HDFC is a professionally managed organization with a board of directors consisting ofeminent persons, professionals who represent various fields including finance, taxation,construction and urban policy & development. The board primarily focuses on strategyformulation, policy and control, designed to deliver increasing value to stakeholders.

Board of Directors


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Details of the Board of Directors in terms of their directorships/memberships in committeesof public companies (excluding HDFC) as on July 8, 2011 are as under:

Sr.No.

Name of Director Category* No. of Directorship**

No. of Committees***Member Chairperson

1 Mr. Deepak S. ParekhNonExecutiveChairman

11 7 5

2 Mr. Keshub MahindraViceChairman

5 1 1

3 Mr. Shirish B. Patel Independent 1 0 0

4 Mr. B. S. Mehta Independent 14 9 5

5 Mr. D. M. Sukthankar Independent 3 1 16 Mr. D. N. Ghosh Independent 5 1 1

7 Dr. S. A. Dave Independent 7 6 0

8 Dr. Ram S. Tarneja Independent 11 6 1

9 Mr. N. M. Munjee Independent 13 9 4

10 Dr. Bimal Jalan Independent 0 0 0

11 Dr. J. J. Irani $Non-executive

6 1 0

12 Mr.V.Srinivasa RanganExecutive

Director9 5 0

13 Ms. Renu Sud KarnadManagingDirector

13 5 3

14 Mr. Keki. M. Mistry

ViceChairman &ChiefExecutiveOfficer

12 10 3

$ Dr. J. J. Irani was appointed as a special director under Articles 125 and 126 of theArticles of Association of the Corporation w.e.f. January 18, 2008.

* All Independent directors have confirmed having met the criteria laid under Clause 49 (I)(A) (iii) of the listing agreements relating to Corporate Governance.


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** Directorships do not include alternate directorships, directorships of private limitedcompanies and of companies incorporated outside India.

*** In terms of Clause 49 (I) (C) (ii) of the Listing Agreements, a director cannot become amember in more than 10 committees or act as Chairman of more than 5 committees acrossall public companies in which he is a director. For this purpose, only Audit Committee andInvestors' Grievance Committee are required to be considered.

Excluding the directorships mentioned above, Mr. Deepak S. Parekh is an alternate director

in 4 companies.

HDFC has a staff strength of 1,607 (as on 31st March, 2011), which includes professionalsfrom the fields of finance, law, accountancy, engineering and marketing.

HDFC Consulting Services

HDFC is a unique example of a housing finance company which has demonstrated theviability of market-oriented housing finance in a developing country. It is viewed as aninnovative institution and a market leader in the housing finance sector in India. The WorldBank considers HDFC a model private sector housing finance company in developingcountries and a provider of technical assistance for new and existing institutions, in Indiaand abroad. HDFCs executives have undertaken consultancy assignments related tohousing finance and urban development on behalf of multilateral agencies all over theworld.

HDFC has also served as consultant to international agencies such as World Bank, UnitedStates Agency for International Development (USAID), Asian Development Bank, United

Nations Center for Human Settlements, Commonwealth Development Corporation (CDC)and United Nations Development Program (UNDP). HDFC has also undertakenassignments for the United Nations Capital Development Fund in Ethiopia, for theUNCHS in Nairobi, for USAID in Russia and Bulgaria, and projects of the World Bank inIndonesia and Ghana.

At the national level, HDFC executives have played a key role in formulating nationalhousing policies and strategies. Recognizing HDFCs expertise, the Government of India


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has invited HDFCs executives to join a number of committees and task forces related tohousing finance, urban development and capital markets.

Social Initiatives

Today, more than ever there is an increasing necessity for the business sector to include'socially responsible actions' as a part of their organizations agenda. However, at HDFCthis commitment was embraced in its nascent years and has since grown in leaps andbounds. Right from its inception years, HDFC has made consistent efforts towards socialupliftment by maintaining an active Social Initiatives portfolio. It is only fair to deduce thatthe credit for crossing the confines of a mere profit making entity to embracing interrelatedsocial concerns rests on the vision and leadership of our founder Chairman Mr. H. T.Parekh.

Awards & Accolades 2012

Mr. Deepak Parekh awarded Ernst &Young's Lifetime Achievement Award for hisexceptional contribution in developing India's Financial Services Sector

Mr. Deepak Parekh Awarded "the Most Inspiring Business leader" by NDTV Profit

Best CFO in the financial sector for 2010 by ICAI. (Feb '11)

Mr. VS Rangan, Executive Director, HDFC has been awarded the "Best CFO in thefinancial sector" for 2010 by ICAI.

Verve Power List 2010 (June '10) Ms. Renu Sud Karnad featured in Verve magazine's listof 50 power women.

FinanceAsia's List of Asia's Best Managed Companies (April '10) HDFC featured inFinanceAsia magazine's list of Asia's Best Managed Companies.

ET - Corporate Dossier List of India Inc's Most Powerful Women leaders (Apr '10) Ms.Renu Sud Karnad featured among the list of top 15 powerful women CEOs.

Reader's Digest - India's Most Trusted 2009 (Mar '10)Mr. Deepak Parekh voted amongIndia's Most Trusted by people across India in a poll conducted by Reader's Digest on a listof 100 public figures.

India Today Power List 2010 (Mar '10) Mr. Deepak Parekh featured in India Today's list of50 Power People.


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Times of India - Crest List of 100 Powerful Women (Mar '10) Ms. Renu Sud Karnadfeatured in the business category among the List of 100 Powerful Women by TOI - Crest.

Dun & Bradstreet - Rolta Corporate Awards 2009 (Mar '10) HDFC selected for the fourthconsecutive year as the 'Top Indian Company' for the 'Financial Institutions/Non-Banking

Financial Companies/Financial Services' sector at the Dun & Bradstreet - Rolta CorporateAwards 2009.

Institute of Chartered Accountants in England and Wales (ICAEW) Award (Feb '10) Mr.Deepak Parekh pronounced as the first international recipient of the 'OutstandingAchievement Award' by ICAEW.

Confederation of Real Estate Developers Associations of India (CREDAI) Award (Feb '10)Mr. Deepak Parekh awarded the 'Lifetime Achievement Award' by CREDAI for hiscontribution to the Real Estate Industry at Natcon 2010 in Dubai.

Certificate for commitment to TQM CII-EXIM Bank Commendation Cert. for commitmentto TQM - 2000.

Best Managed Company and Asia Pacific region's India's Second Best Managed Companyand Asia Pacific region's 18th, by AsiaMoney magazine 2000.

Future

HDFC has always been market-oriented and dynamic with respect to resource mobilizationas well as its lending program. This renders it more than capable to meet the newchallenges that have emerged. Over the years, HDFC has developed a vast client base ofborrowers, depositors, shareholders and agents, and it hopes to capitalize on this loyal andsatisfied client base for future growth. Internal systems have been developed to be robustand agile, to take into account changes in the volatile external environment.

HDFC has developed a network of institutions through partnerships with some of the bestinstitutions in the world, for providing specialized financial services. Each institution isbeing fine-tuned for a specific market, while offering the entire HDFC customer base the

highest standards of quality in product design, facilities and service.

company profile - hdfc ltd

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