India’s TOP 500 Companies 2020

INDIA’S TOP 500 COMPANIES 2020 120 Experts’ View Housing Development Finance Corporation Limited MS. RENU SUD KARNAD Managing Director Being the largest housing finance company in the country, how do you perceive the company’s success? What, according to you, are the biggest milestones for HDFC Ltd. from its inception in 1977? As a customer focused organization our service model revolves around the customers. We have always been open to ideas from customers, employees and well-wishers. Our experience gained over the years has helped us to counsel and guide customers, which is a differentiating factor that HDFC is well known for. Key Milestones: 9 9 Currently HDFC’s loan disbursements every 5 days are more than what HDFC disbursed in its first 13 years cumulatively. 9 9 In 1994, HDFC one of the first to obtain Banking license under the new Policy. 9 9 In 2000, HDFC Standard Life Insurance was the only private sector life insurance company to be granted a certificate of registration from IRDA in the first phase. 9 9 In 2016, HDFC became the first Indian corporate to issue Rupee Denominated Bonds (Masala Bonds) on London Stock Exchange. HDFC has one of the healthiest asset qualities across all commercial banks/ financial institutes in India. What are the key factors / initiatives taken, that have contributed to the company’s success? What are the factors that give HDFC Ltd an edge over its competitors? Housing is our core business and our experience of over four decades has helped us establish a brand which is trustworthy and a robust appraisal system. One of the unique facility apart from a bouquet of facilities is that these systems allow the customer to borrow and service the loan anywhere from the country. Our experience helps us understand the customers’ needs and guide them accordingly. Also we have been extremely prudent and conservative in our provisioning as it is much higher than what we are required to statutorily provide for. When the country is battling the pandemic, what are your views on current economic situation? What are your views on the recent rate cuts announced by the central bank? The demand will improve with every passing quarter. We have already seen disbursements back to the level of 81% for the month of July 2020 compared to July 2019. For the housing sector, I expect the demand to increase further, because more people want to work from home. When you work from home, you need a more space. Hence apart from home loans for buying a house, I also expect demand for home extension and home improvement Loans. RBI has proactively reduced the repo rate by 1.15% since January 2020. I must compliment RBI for ensuring enough liquidity in the system through various measures. “ The demand will improve with every passing quarter. We have already seen disbursements back to the level of 81% for the month of July 2020 compared to July 2019. ” Dun & Bradstreet