India’s Top 500 Companies 2022

INDIA’S TOP 500 COMPANIES 2022 52 Experts’ View About the Company Housing Development Finance Corporation Ltd (HDFC) was incorporated in 1977 as the first specialised mortgage company in India. HDFC is engaged in providing finance to individuals, corporates and developers for the purchase, construction, development and renovation of houses, apartments and commercial properties in India. HDFC is a model private housing finance company for developing countries with nascent housing finance markets. The business of HDFC is conducted through its branches in India and its overseas offices supported by a network of agents for sourcing loans as well as deposits. CRISIL and ICRA have for the twenty seven consecutive year, reaffirmed their ‘CRISIL FAAA/Stable’ and ‘ICRA MAAA/Stable’ ratings respectively for HDFC’s deposits business operations. Business Operations HDFC is the holding company for investments in its associates and subsidiary companies. HDFC has overseas offices in London, Singapore and Dubai. The Dubai office caters to customers across Middle-East through its service associates. The corporation has undertaken several consultancy assignments in housing finance in various countries across Asia, Africa and East Europe. Some of offerings of the corporation are as follows: ¾ Housing Loans – Home Loans, Plot Loans and Rural Housing Loans ¾ Home Loan Products – House Renovation Loans, Home Extension Loans and Top Up Loans ¾ Non-Housing Loans – Loan Against Property, Commercial Property Loans and Commercial Plot Loans ¾ Affordable Housing – HDFC Reach Loans and Pradhan Mantri Awas Yojana ¾ Refinance – Home Loan Balance Transfer As on 31 March 2022, the product-wise break-up of loans on an AUM basis consisted of 79% individual loans, 5% corporate loans, 9% construction finance and 7% commercial lease rental discounting. During the year, on an AUM basis, 88% of the Housing Development Finance Corporation Limited Renu Sud Karnad Managing Director incremental growth in the loan book came from individual loans and 12% from non-individual loans. Subsidiaries and Associates of the Corporation include HDFC Bank Limited, HDFC Life Insurance Company Limited, HDFC Asset Management Company Limited, HDFC Ergo General Insurance Company Ltd, HDFC Capital Advisors Limited and HDFC Credila. HDFC has advanced conversational chatbot with natural language processing (NLP) and ML technology, backed by live chat to address customers’ servicing and new loan requirements 24x7. The corporation has adopted technology solutions and fintech integrations at various stages of underwriting, enabling speedy processing of applications and fraud detection. Apart from English, HDFC’s website is in six vernacular languages to serve the needs of customers in Tier II, Tier-III cities and rural areas. Nearly 82% of the entity’s mortgages are sourced by the Corporation or through its affiliates. The Corporation’s deposit & loan products are offered at several locations through outreach programmes. As on FY22, the total number of offices stood at 675, of which 211 outlets are of HDFC Sales Limited. HDFC has piloted an end-to-end digitally enabled product, wherein all checks and controls are entirely system driven and loans are auto approved. In FY22, 91% of new loan applications were received through digital channels. The Corporation’s distribution channels which include HDFC Sales Private Limited, HDFC Bank and third-party direct selling associates (DSAs) play an important role in sourcing home loans. HDFC has third party distribution tie-ups with commercial banks, small finance banks, non-banking financial companies and other distribution companies including e-portals for retail loans. All distribution channels only source loans, while the control over the credit, legal and technical appraisal continues to rest with HDFC. Proposed Merger of HDFC Bank and HDFC On 4 April 2022, the board of directors of HDFC and HDFC Bank approved a composite scheme of amalgamation (scheme) for the amalgamation of HDFC’s wholly owned subsidiaries, HDFC Investments Limited and HDFC Holdings Limited, with and into HDFC; and HDFC with and into HDFC Bank. Dun & Bradstreet