Housing Development Finance Corporation

Last updated

Housing Development Finance Corporation
Company type Public
BSE: 500010
NSE: HDFC
BSE SENSEX constituent
NSE NIFTY 50 constituent
ISIN INE001A01036
Industry Financial services
Founded1977;47 years ago (1977)
Defunct1 July 2023;17 months ago (1 July 2023)
FateMerged with HDFC Bank [1]
Headquarters Mumbai, Maharashtra, India
Area served
India
Key people
Products Mortgage loans
RevenueIncrease2.svg₹152,997 crore (US$18 billion) [3]  (2023)
Increase2.svg₹32,130 crore (US$3.8 billion) [3]  (2023)
Increase2.svg₹26,160 crore (US$3.1 billion) [3]  (2023)
AUM Increase2.svg₹432,084 crore (US$52 billion) [4]
Total assets Increase2.svg₹1,091,528 crore (US$130 billion) [5]  (2023)
Total equity Increase2.svg₹201,474 crore (US$24 billion) [5]  (2023)
Number of employees
3,226 (2021) [6]
Subsidiaries HDFC Bank
HDFC ERGO
HDFC Life
HDFC Mutual Fund [7]
HDFC Credila [8]
Website www.hdfc.com

Housing Development Finance Corporation was an Indian private-sector mortgage lender headquartered based in Mumbai. [9] [10] It was widely recognised as the largest housing finance company in India. [11] In addition to its core mortgage lending operations, HDFC had diversified interests through its associate and subsidiary companies, including banking, life and general insurance, asset management, venture capital, and deposit services. [9]

Contents

In July 2023, HDFC merged with HDFC Bank, India’s largest private-sector bank. The merger aimed to broaden the group’s financial offerings and enhance customer access by leveraging the bank’s extensive network and diverse portfolio. This strategic consolidation marked a significant milestone in India’s financial services landscape. [12]

History

It was founded in 1977 with the support from India's business community, [13] [14] as the first specialised mortgage company in India and main company among HDFC group of companies. [13] [15] HDFC was promoted by the Industrial Credit and Investment Corporation of India (ICICI). [16] Hasmukhbhai Parekh played a key role in the foundation of this company which started with the main aim of solving the housing shortage in India and started rising steadily thereafter. [13]

In 2000, HDFC Asset Management Company launched its mutual fund schemes. [16] In the same year, IRDA granted registration to HDFC Standard Life Insurance, as the first private sector life insurance company in India. Currently it operates in India, Kuwait, Oman, Qatar, Saudi Arabia, Singapore, United Arab Emirates and United Kingdom. [13]

Products and services

Mortgage

The company provides housing finance to individuals and corporates for purchase/construction of residential houses. [13] [17] The type of loans offered by company include loans for purchase and construction of a residential units, purchase of land, home improvement loans, home extension loans, non-residential premise loans for professionals and loan against property and repayment options include step-up repayment facility and flexible loan instalment plan. [13] It is one of the largest providers of housing loans in India. [13] [17] In its Annual Report for financial year 2012–13, the company has disclosed that it has disbursed approx. INR 456,000 crores in 35 years of its existence for a total of 4.4 million housing units. [2]

The average loan profile amounts to INR 2.18 million (US$35,160) which lasts for about 13 years and covers approx. 65% of actual property value. From the year 2000,the company started offering housing loans on the Internet becoming first company to do so. [13]

Life insurance

The company has been providing life insurance since the year 2000, through its subsidiary HDFC Standard Life Insurance company Limited. It offers 33 individual products and 8 group products. It uses the HDFC group network to cross sell by offering customized products. It operates out of 451 offices across India serving over 965 locations. It had a market share of 4.6% of life insurance business in India as of 30 September 2013. [15] HDFC Life has over 15,000 employees. [18]

General insurance

The company offers general insurance products such as:

Mutual funds

HDFC provides mutual fund services through its subsidiary HDFC Asset Management accountingy Limited. The average assets under management (AUM) of HDFC Mutual Fund for the quarter Jul-13 to Sep-13 was INR 1.03 trillion. [19]

Operations

HDFC's distribution network spans 396 outlets (including 109 offices of HDFC's distribution company HDFC Sales Private Limited) which cater to approx. 2,400 towns and cities spread across India. [9] To cater to Non-Resident Indians, HDFC has offices in London, Singapore and Dubai [13] and service associates in Middle East countries. [9]

The first overseas office was opened in Dubai in 1996 and in the 2000's was expanded to London and Singapore. [13]

In addition, HDFC covers over 90 locations through its outreach programmes. HDFC's marketing efforts continue to be concentrated on developing a stronger distribution network. Home loans are also sourced through HDFC Sales, HDFC Bank Limited and other third party Direct selling Agents (DSA). The corporation has 232 institutional owners and shareholders filing through 13D/G or 13F forms with the Securities Exchange Commission. [20] Largest investor amongst them is Vanguard International Growth Fund. [21]

Major subsidiaries and associates

HDFC's key associate and subsidiary companies included HDFC Bank, HDFC Life Insurance Company, HDFC ERGO General Insurance Company, HDFC Asset Management Company, and HDFC Capital Advisors. [15]

HDFC Bank

HDFC holds 26.14% of shares in HDFC Bank. HDFC Bank sources home loans for HDFC for a fee. [22] The key business areas of HDFC Bank are wholesale and retail banking and treasury operations. As of April 2023, its market capitalisation was ₹941,386 crore (US$110 billion), making it India's third largest publicly traded company. [23]

HDFC Life Insurance Company

HDFC holds approx. 48.7% of shares in HDFC Life [24] and is the sole promoter of the company, as of May 2023. [25] In September 2013, it was ranked third in terms of market share of private life insurance companies in India. [15] On the same date, it had a network of approx. 72,000 financial consultants to sell its policies. [15]

HDFC Asset Management Company

HDFC formed HDFC Mutual Fund as a joint venture with Standard Life Investments in 1999. HDFC Asset Management Company is the investment manager of HDFC Mutual Fund's schemes. [26] HDFC holds a 52.6% stake and is the sole promoter of the company as of June 2023. [27] HDFC AMC manages 68 schemes comprising debt, equity, exchange traded fund and fund of fund schemes. [15] Average assets under management (AUM) as at the end of March 2022 is ₹4.07553 trillion. It is ranked third in the industry in India on the basis of average assets under management.

HDFC ERGO General Insurance Company

HDFC formed this General Insurance company with ERGO Insurance Group. HDFC holds 50.5% and ERGO holds 26% of the shares. By the end of September 2013, its Market share in General Insurance stood at 4.1% (overall) in terms of gross gross direct premium in first half year of FY 2013–14. [15] The total employee strength of the company as of March 31, 2013 was 1,389. [18]

HDFC Capital Advisors

Established in 2016, HDFC Capital Advisors is a private equity real estate firm. As of April 2023, HDFC holds 90% stake in the company while Abu Dhabi Investment Authority holds the remaining 10%. [28] In 2022, two wholly-owned subsidiaries of HDFC, viz. HDFC Property Ventures and HDFC Venture Capital, were merged into HDFC Capital Advisors. [29]

Former subsidiaries and associates

HDFC Credila Financial Services

HDFC Credila is a non-banking finance company and was the first Indian lender to exclusively focus on education loans. [30] The company lends to under-graduate and post-graduate students studying in India or abroad. HDFC held about 90% shares in this company. [15] In 2023, HDFC sold a majority stake in HDFC Credila to a consortium of private equity firms, led by Baring EQT and ChrysCapital, for ₹9,060 crore (US$1.1 billion). [31]

HDFC RED

Launched in 2010, HDFC held a 100% stake in HDFC RED, a real estate online listings platform operating under HDFC Developers Ltd. The company focuses on real estate, avoiding resale and rental services. [32] [15] In 2018, HDFC sold HDFC RED and HDFC Realty to Quikr for ₹357 crore (US$54.82 million). [33]

GRUH Finance

HDFC held approx. 59% in GRUH, a housing finance company offering loans to individuals for purchase, construction and renovation of dwelling units. GRUH also offers loans to the self-employed segment where formal income proofs are not available. [15] It has a retail network of 136 offices across 7 states in India. [15]

On 17 October 2019, GRUH Finance was formally merged into Bandhan Bank, giving HDFC a 14.9% stake in Bandhan.

Listings and shareholding

Listing: The equity shares of HDFC are listed on Bombay Stock Exchange where it is a constituent of the BSE SENSEX index, [34] and the National Stock Exchange of India where it is a constituent of the S&P CNX Nifty. [35]

Shareholding: On 30 September 2013, 73.09% of the equity shares of the company were owned by the Foreign Institutional Investors (FII). Around 185,000 individual public shareholders own approx. 9.25% of its shares. The remaining 17.66% shares are owned by others. [36]

Shareholders (as of 30-September-2013)Shareholding [36]
Promoter Group00.00%
Foreign Institutional Investors (FII)73.09%
Individual shareholders09.25%
Insurance companies08.42%
Mutual Funds/UTI 03.04%
Corporate Bodies02.77%
Financial Institutions/Banks 02.11%
NRI/OCB/FDI/Others01.32%
Total100.0%

Employees

As of 31 March 2013, the company had 1,833 employees, out of which 22% were women. [17] The company incurred INR 5.28 billion on employee benefit expenses for the financial year 2012–13. [2]
For FY 2012–13, the company reported a per employee profit of US$484,000 and per employee assets of US$18.5 million. [15]
HDFC's Training Centre is located in Lonavla Mumbai and it was established in 1989. It is mainly used for training programmes, workshops, conferences and strategy meetings. [37]

Awards and recognition

See also

Related Research Articles

<span class="mw-page-title-main">Reliance Capital</span> Indian Financial Services company

Reliance Capital Limited is an Indian diversified financial services holding company promoted by Reliance Anil Dhirubhai Ambani Group. Reliance Capital, a constituent of Nifty Midcap 50 and MSCI Global Small Cap Index, is a part of the Reliance Group. It is amongst India's leading and most valuable financial services companies in the private sector. As on 31 March 2017, the net worth of the company stood at ₹16,548 crore, while its total assets as on the date stood at ₹82,209 crore. In Fortune India 500 list of 2018, Reliance Capital was ranked as the 77th largest corporation in India with 5th rank in 'Non-Banking Finance' category.

<span class="mw-page-title-main">Life Insurance Corporation</span> Indian public sector life insurer

Life Insurance Corporation of India (LIC) is an Indian multinational public sector life insurance company headquartered in Mumbai. It is India's largest insurance company as well as the largest institutional investor with total assets under management worth ₹52.52 trillion (US$630 billion) as of March 2024. It is under the ownership of Government of India and administrative control of the Ministry of Finance.

The IDBI Bank Limited is a Scheduled Commercial Bank under the ownership of Life Insurance Corporation of India (LIC) and Government of India. It was established by Government of India as a wholly owned subsidiary of Reserve Bank of India in 1964 as Industrial Development Bank of India, a Development Finance Institution, which provided financial services to industrial sector. In 2005, the institution was merged with its subsidiary commercial division, IDBI Bank, and was categorised as "Other Development Finance Institution" category. Later in March 2019, Government of India asked LIC to infuse capital in the bank due to high NPA and capital adequacy issues and also asked LIC to manage the bank to meet the regulatory norms. Consequent upon LIC acquiring 51% of the total paid-up equity share capital, the bank was categorised as a 'Private Sector Bank' for regulatory purposes by Reserve Bank of India with effect from 21 January 2019. IDBI was put under Prompt Corrective Action of the Reserve Bank of India and on 10 March 2021 IDBI came out of the same. At present direct and indirect shareholding of Government of India in IDBI Bank is approximately 95%, which Government of India (GoI) vide its communication F.No. 8/2/2019-BO-II dated 17 December 2019, has clarified and directed all Central/State Government departments to consider IDBI Bank for allocation of Government Business. Many national institutes find their roots in IDBI like SIDBI, EXIM, National Stock Exchange of India, SEBI, National Securities Depository Limited. Presently, IDBI Bank is one of the largest Commercial Banks in India.

Kotak Mahindra Bank Limited is an Indian banking and financial services company headquartered in Mumbai. It offers banking products and financial services for corporate and retail customers in the areas of personal finance, investment banking, life insurance, and wealth management. As of December 2023, the bank has 1,869 branches and 3,239 ATMs, including branches in GIFT City and DIFC (Dubai).

HDFC Bank Limited is an Indian banking and financial services company, headquartered in Mumbai. It is India's largest private sector bank by assets and the world's tenth-largest bank by market capitalization as of May 2024.

Axis Bank Limited, formerly known as UTI Bank (1993–2007), is an Indian multinational banking and financial services company headquartered in Mumbai, Maharashtra. It is India's third largest private sector bank by assets and fourth largest by market capitalisation. It sells financial services to large and mid-size companies, SMEs and retail businesses.

<span class="mw-page-title-main">Infrastructure Leasing & Financial Services</span> Infrastructure development and finance company headquartered in Mumbai, India

Infrastructure Leasing & Financial Services Limited (IL&FS) is an Indian state-funded infrastructure development and finance company. It was created by public sector banks and insurance companies.

<span class="mw-page-title-main">Yes Bank</span> Indian private sector bank

Yes Bank is an Indian private sector bank, headquartered in Mumbai, catering to retail customers, MSMEs, and corporate clients. The bank was founded by Rana Kapoor and Ashok Kapur in 2003. Its network is spread across 300 districts in India and comprises 1,198 branches, 193 BCBOs and 1,287+ ATMs.

The first introduction of a mutual fund in India occurred in 1963, when the Government of India launched the Unit Trust of India (UTI). Mutual funds are broadly categorised into three segments: equity funds, hybrid funds, and debt funds.

Mahindra & Mahindra Financial Services Limited (MMFSL) is an Indian rural non-banking financial company headquartered in Mumbai. It is amongst the top tractor financers in India, with 1000+ offices across the country.

<span class="mw-page-title-main">LIC Housing Finance</span> Indian state owned housing finance company

LIC Housing Finance Limited is the largest Housing Finance Company in India, with a registered corporate office in Mumbai. It is a deposit taking housing finance company, and it is a subsidiary of LIC, mainly providing long-term financing to people who purchase or construct residential houses or flats. It also finances the repair and renovation of existing residences and gives loans to businesses to purchase or construct of clinics, nursing homes, diagnostic centres, office space or equipment. It holds promoter and controller status in IDBI Bank Ltd. from January 2019.

<span class="mw-page-title-main">HDFC Life</span> Indian life insurance company

HDFC Life Insurance Company Limited is a long-term life insurance provider headquartered in Mumbai, offering individual and group insurance services. The company was incorporated on 14 August 2000.

<span class="mw-page-title-main">RBL Bank</span> Indian bank

RBL Bank, formerly known as Ratnakar Bank Limited, is an Indian private sector bank founded in 1943 and headquartered in Mumbai. It offers services across five verticals: corporate banking, commercial banking, branch banking and retail liabilities, retail assets, and treasury and financial markets operations.

<span class="mw-page-title-main">Bajaj Finserv</span> Indian financial services company

Bajaj Finserv Limited is an Indian non-banking financial services company headquartered in Pune. It is focused on lending, asset management, wealth management and insurance.

Bandhan Bank Ltd. is a banking and financial services company, headquartered in Kolkata.

SBI Mutual Fund is an Indian private asset management company introduced by the State Bank of India (SBI) and incorporated in 1987 with its corporate head office located in Mumbai, India. SBIFMPL is a joint venture between the State Bank of India, an Indian public sector bank, and Amundi, a European asset management company. A shareholder agreement in this regard has been entered on April 13, 2011, between SBI & AMUNDI Asset Management. Accordingly, SBI currently holds 63% stake in SBIFMPL and the 37% stake is held by AMUNDI Asset Management through a wholly owned subsidiary, Amundi India Holding. SBI & AMUNDI Asset Management shall jointly develop the company as an asset management company of international repute by adopting global best practices and maintaining international standards.

Bajaj Finance Limited (BFL) is a deposit-taking Indian non-banking financial company headquartered in Pune. It has a customer base of 88.11 million and holds assets under management worth ₹354,192 crore (US$42 billion), as of June 2024.

<span class="mw-page-title-main">Sundaram Finance</span> Indian financial services company

Sundaram Finance Limited is an Indian financial and investment service provider, based in Chennai. The company offers consumer loans, wealth management, commercial finance, investment banking, private equity, treasury advisory, credit cards and infrastructure finance, among others.

ICICI Prudential Life Insurance Company Limited is an Indian life insurance company in India. Established as a joint venture between ICICI Bank Limited and Prudential Corporation Holdings Limited, ICICI Prudential Life is engaged in life insurance and asset management business. In 2016, the company became the first insurance company in India to be listed in the domestic stock exchanges.

Home First Finance Company India Limited is an Indian housing finance company in the affordable housing segment based in Mumbai and founded in 2010. It provides home loans, mortgage loans and home construction loans. Its equity shares are listed on Bombay Stock Exchange and National Stock Exchange.

References

  1. ↑ "HDFC-HDFC Bank Merger".
  2. 1 2 3 "Annual Report 2012-13" (PDF). HDFC. Retrieved 20 November 2013.
  3. 1 2 3 "Housing Development Finance Corporation Consolidated Profit & Loss account, Housing Development Finance Corporation Financial Statement & Accounts" (PDF). www.bseindia.com.
  4. ↑ "Housing Development Finance Corporation - Assets under management, May 31, 2022".
  5. 1 2 "Housing Development Finance Corporation Consolidated Balance Sheet, Housing Development Finance Corporation Financial Statement & Accounts" (PDF). www.bseindia.com.
  6. ↑ Housing Development Finance Corporation Annual Report 2021
  7. ↑ "About Us – HDFC Asset Management Company in India – HDFC Mutual Fund".
  8. ↑ "About HDFC Credila, an HDFC Ltd | Credila". www.hdfccredila.com.
  9. 1 2 3 4 "About HDFC". HDFC. Archived from the original on 26 January 2013. Retrieved 19 November 2013.
  10. 1 2 "India's Best Boards 2013: HDFC distinguished by the fact that it has no promoter". Economic Times. 26 July 2013. Archived from the original on 27 November 2013. Retrieved 27 November 2013.
  11. ↑ "HDFC finishes FY23 in style". Moneycontrol. 5 May 2023. Retrieved 27 June 2023.
  12. ↑ "Explained: The main reasons behind the merger of HDFC and HDFC Bank". Business Today. 4 April 2022. Archived from the original on 27 April 2022. Retrieved 7 January 2024.
  13. 1 2 3 4 5 6 7 8 9 10 "Housing Development Finance Corp. Ltd". Nikkei Asia. 28 January 2020. Retrieved 18 May 2021.
  14. ↑ "Housing Development Finance Corporation Ltd Stock Price - (2486.45), Housing Development Finance Corporation Ltd Share Price Live Today, Housing Development Finance Corporation LtdStock Live BSE/NSE Share Price". www.financialexpress.com. Retrieved 18 May 2021.
  15. 1 2 3 4 5 6 7 8 9 10 11 12 13 "Investor Presentations: Quarter Ended March, 2017" (PDF). HDFC Limited. 17 May 2017. Retrieved 20 May 2017.
  16. 1 2 "Company History – Housing Development Finance Corporation Ltd". Economic Times. Retrieved 27 November 2013.
  17. 1 2 3 "Business Responsibility Report 2012-13" (PDF). HDFC. Retrieved 20 January 2013.
  18. 1 2 "Annual Report of Subsidiaries for FY 2012–13" (PDF). HDFC. Retrieved 27 November 2013.
  19. ↑ "Average AUM". Association of Mutual Funds in India. Retrieved 8 December 2013.
  20. ↑ "FY Report 2019 : HDFC" (PDF). Retrieved 2 May 2020.
  21. ↑ "HDFC Institutional Ownership – HOUSING DEVELOPMENT FINANCE CORP.LTD. Stock". fintel.io. Retrieved 2 May 2020.
  22. ↑ "Investor Presentations: Quarter Ended March, 2013" (PDF). HDFC. Retrieved 27 November 2013.
  23. ↑ Jaiswar, Pooja Sitaram (21 June 2023). "HDFC twins, ITC are top 3 gainers in market value from Oct 2022 to April 2023". Mint. Retrieved 27 June 2023.
  24. ↑ "Abrdn to sell 4.3 crore shares of HDFC Life to raise up to Rs 2,425 crore via block deal". The Economic Times. 12 September 2022. Retrieved 23 March 2023.
  25. ↑ "Abrdn exits HDFC Life, sells entire stake for Rs 2,069 cr". The Economic Times. 31 May 2023. Retrieved 9 July 2023.
  26. ↑ "HDFC Asset Management Company Limited" (PDF). CARE Ratings. Retrieved 22 February 2023.
  27. ↑ "Abrdn Investment sells entire HDFC AMC stake". The Hindu Businessline. 20 June 2023. Retrieved 27 June 2023.
  28. ↑ Babar, Kailash (21 April 2022). "HDFC inks pact to sell 10% equity in HDFC Capital to Abu Dhabi Investment Authority". The Economic Times. Retrieved 9 July 2023.
  29. ↑ Babar, Kailash (26 August 2022). "HDFC Property Ventures, HDFC Venture Cap to be merged with HDFC Capital Advisors". The Economic Times. Retrieved 9 July 2023.
  30. ↑ "Education Loan | HDFC Credila". hdfccredila.com.
  31. ↑ "HDFC sells education loan arm HDFC Credila to PE firms for Rs 9,060 crore". Business Standard. 20 June 2023. Retrieved 27 June 2023.
  32. ↑ "Burning cash on advertising isn't a wise strategy for housing portals: HDFC RED CEO Sohel IS". Forbes . 7 April 2017. Retrieved 20 May 2017.
  33. ↑ "Quikr buys HDFC Red and Realty for Rs 357 crore". Moneycontrol. 14 February 2018. Retrieved 27 June 2023.
  34. ↑ "Scripwise Weightages in S&P BSE SENSEX". BSE India. Archived from the original on 1 December 2015. Retrieved 16 November 2013.
  35. ↑ "Download List of CNX Nifty stocks (.csv)". NSE India. Retrieved 16 November 2013.
  36. 1 2 "Shareholding pattern". HDFC Limited. 30 September 2013. Retrieved 16 November 2013.
  37. ↑ "HDFC Training Centre". HDFC. Retrieved 27 November 2013.
  38. ↑ "India's Best Boards 2013: Kumar Birla-led jury finds only five winners". Economic Times. 26 July 2013. Archived from the original on 27 November 2013. Retrieved 27 November 2013.
  39. ↑ "HDFC on the Forbes Global 2000 list". Forbes. May 2013. Retrieved 27 November 2013.
  40. ↑ "Best companies to work for 2012". Economic Times. 16 July 2012. Archived from the original on 19 November 2013. Retrieved 20 November 2013.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.