Housing Development Finance Corporation

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Housing Development Finance Corporation Limited
Traded asBSE500010
BSE SENSEX Constituent
CNX Nifty Constituent
IndustryFinancial services
HeadquartersMumbai India
Area served
Key people
ProductsMortgage Loans
RevenueIncrease US$ 4.63 Billion (2016)
Increase US$ 1.06 Billion (2016)
Number of employees
2081 (March 2015)[2]

Housing Development Finance Corporation Limited (HDFC) is an Indian financial conglomerate based in Mumbai, India.[2][3] It is a major provider of finance for housing in India. It also has a presence in banking, life and general insurance, asset management, venture capital, realty, education, deposits and education loans.[2]


It was founded in 1977 as the first specialised mortgage company in India.[4] HDFC was promoted by the Industrial Credit and Investment Corporation of India.[5] Hasmukhbhai Parekh played a key role in the foundation of this company.
In 2000, HDFC Asset Management company launched its mutual fund schemes.[5] In the same year, IRDA granted registration to HDFC Standard Life Insurance, as the first private sector life insurance company in India.

Products and services[edit]


The company provides housing finance to individuals and corporates for purchase/construction of residential houses.[6] It is one of the largest providers of housing loans in India.[6] 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.[1]
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.

Life insurance[edit]

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.[4] HDFC Life has over 15,000 employees.[7]

General insurance[edit]

The company offers general insurance products such as:

  • Motor, health, travel, home and personal accident in the retail segment which accounts for 47% of its total business and
  • Property, marine, aviation and liability insurance in the corporate segment[4]

Mutual funds[edit]

HDFC provides mutual fund services through its subsidiary HDFC Asset Management Company Limited. The average Assets Under Management (AUM) of HDFC Mutual Fund for the quarter Jul-13 to Sep-13 was INR 1.03 trillion.[8]


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.[2] To cater to Non-Resident Indians, HDFC has offices in London, Singapore and Dubai and service associates in Middle East countries.[2]
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).

Major subsidiaries and associates[edit]

HDFC’s key associate and subsidiary companies include HDFC Bank Limited, HDFC Standard Life Insurance Company Limited, HDFC ERGO General Insurance Company Limited, HDFC Asset Management Company Limited, GRUH Finance Limited, HDFC Venture Capital Limited, HDFC RED and Credila Financial Services Private Limited.[4]

HDFC Bank:
HDFC holds approx. 30.5% of shares in HDFC Bank. HDFC Bank sources home loans for HDFC for a fee.[9]
The key business areas of HDFC bank are wholesale and retail banking and treasury operations. On 31 March 2013, its market capitalisation was INR 1.5 trillion (US$27.31 billion), making it India's seventh largest publicly traded company.[10]

HDFC Standard Life Insurance Company Limited:
HDFC holds approx. 51.7% of shares in HDFC Life. Standard Life holds 49% shares as per latest Financial Statements. In September 2013, it was ranked third in terms of market share of private life insurance companies in India.[4] On the same date, it had a network of approx. 72,000 financial consultants to sell its policies.[4]

HDFC Asset Management Company:
HDFC formed this Mutual fund company with Standard Life Investments and holds approx. 57.4% of its shares. It manages 44 schemes comprising debt, equity, exchange traded fund and fund of fund schemes.[4] Average assets under management (AUM) as at the end of September 2013 were INR 1.07 trillion.[4] It is ranked first in the industry in India on the basis of Average Assets under management.[4]

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.[4] The total employee strength of the company as of March 31, 2013 was 1,389.[7]

GRUH Finance:
HDFC holds approx. 59% in GRUH. It is a housing finance company offering loans to individuals for purchase, construction and renovation of dwelling units. It also offers loans to the self-employed segment where formal income proofs are not available.[4] It has a retail network of 136 offices across 7 states in India.[4]

HDFC Property Fund:
It was launched in 2005. Its first scheme was a close ended fund for domestic investors: 'HDFC India Real Estate Fund'. The funds of this scheme are managed by HDFC Venture Capital Limited. Its another scheme is for international investors and is a closed ended fund: 'HIREF International Fund'.[4]

Launched in 2010, HDFC has 100% shares for HDFC RED, a real estate online listings platform operating under HDFC Developers Ltd. The company focuses on real estate, avoiding resale and rental services.[11][4]

HDFC Credila Financial Services:
HDFC Credila is a non-banking finance company and was the first Indian lender to exclusively focus on education loans.[12] The company lends to under-graduate and post-graduate students studying in India or abroad. HDFC holds approx. 90% shares in this company. The average amount of education loan disbursed is INR 880,000 approx.[4]

Listings and shareholding[edit]

Listing: The equity shares of HDFC are listed on Bombay Stock Exchange where it is a constituent of the BSE SENSEX index,[13] and the National Stock Exchange of India where it is a constituent of the S&P CNX Nifty.[14]

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.[15]

Shareholders (as of 30-September-2013) Shareholding[15]
Promoter Group 00.00%
Foreign Institutional Investors (FII) 73.09%
Individual shareholders 09.25%
Insurance companies 08.42%
Mutual Funds/UTI 03.04%
Corporate Bodies 02.77%
Financial Institutions/Banks 02.11%
NRI/OCB/FDI/Others 01.32%
Total 100.0%


As of 31 March 2013, the company had 1,833 employees, out of which 22% were women.[6] The company incurred INR 5.28 billion on employee benefit expenses for the financial year 2012-13.[1]
Employee productivity: For FY 2012-13, the company reported a per employee profit of US$484,000 and per employee assets of US $18.5 million.[4]
Centre for Housing Finance: 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.[16]

Awards and recognition[edit]

  • In 2013, a survey on "India's Best Boards" listed HDFC's Board of Directors among the 5 best boards in India.[3][17]
  • In May 2013, Forbes listed it at #561 in the Global 2000 list of largest companies.[18]
  • In 2012, HDFC Limited was recognised as one of India's 'Best Companies to work for' in a joint study conducted by The Economic Times and 'The Great Place to Work Institute'.[19]

See also[edit]


  1. ^ a b c "Annual Report 2012-13" (PDF). HDFC. Retrieved 20 November 2013.
  2. ^ a b c d e "About HDFC". HDFC. Retrieved 19 November 2013.
  3. ^ a b "India's Best Boards 2013: HDFC distinguished by the fact that it has no promoter". Economic Times. 26 July 2013. Retrieved 27 November 2013.
  4. ^ a b c d e f g h i j k l m n o p "Investor Presentations: Quarter Ended March, 2017" (PDF). HDFC Limited. 17 May 2017. Retrieved 20 May 2017.
  5. ^ a b "Company History - Housing Development Finance Corporation Ltd". Economic Times. Retrieved 27 November 2013.
  6. ^ a b c "Business Responsibility Report 2012-13" (PDF). HDFC. Retrieved 20 November 2013.
  7. ^ a b "Annual Report of Subsidiaries for FY 2012-13" (PDF). HDFC. Retrieved 27 November 2013.
  8. ^ "Average AUM". Association of Mutual Funds in India. Retrieved 8 December 2013.
  9. ^ "Investor Presentations: Quarter Ended March, 2013" (PDF). HDFC. Retrieved 27 November 2013.
  10. ^ "Table 4-12: Top '50' Companies by Market Capitalisation as of March 31, 2013". NSE India. 31 March 2013. Retrieved 9 November 2013.
  11. ^ "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.
  12. ^ "HDFC Credila Education Loan".
  13. ^ "Scripwise Weightages in S&P BSE SENSEX". BSE India. Retrieved 16 November 2013.
  14. ^ "Download List of CNX Nifty stocks (.csv)". NSE India. Retrieved 16 November 2013.
  15. ^ a b "Shareholding pattern". HDFC Limited. 30 September 2013. Retrieved 16 November 2013.
  16. ^ "HDFC Training Centre". HDFC. Retrieved 27 November 2013.
  17. ^ "India's Best Boards 2013: Kumar Birla-led jury finds only five winners". Economic Times. 26 July 2013. Retrieved 27 November 2013.
  18. ^ "HDFC on the Forbes Global 2000 list". Forbes. May 2013. Retrieved 27 November 2013.
  19. ^ "Best companies to work for 2012". Economic Times. 16 July 2012. Retrieved 20 November 2013.

External links[edit]