Development Finance Corporation
Organisation and Management:
HDFC is a professionally managed organisation with a Board
of Directors consisting of eminent persons representing various
fields including finance, taxation, construction and urban policy
and development. The company has a highly experienced senior management
team headed by the Chairman, Deepak Parekh, Managing Director,
Deepak Satwalekar, Executive Director K M Mistry and
several general managers.HDFC operates through 45 branch offices
located throughout the country with its corporate headquarters in
Mumbai, India. It also has an international office in Dubai, UAE,
with service associates in Kuwait, Oman and Qatar. HDFC has made
loans available in over 2,400 towns and cities through its branches
and outreach programmes.
Incorporated in 1997
with a share capital of Rs 100 million, HDFC has since emerged as
the largest mortage institution in the country. Promoted by the
Industrial Credit and Investment Corporation of India, and
with initial investments from the International Finance Corporation
and the Aga Khan, the corporation has had a series of
share issues raising its capital to Rs 1.19 billion.
objective of HDFC is to enhance residential housing stock and to
promote home ownership. One of HDFC's major objectives is to increase
the flow of resources for housing through the integration of housing
finance institutions with the domestic capital market. During the
past decade, HDFC has nurtured the development of a housing finance
industry by helping to promote housing finance institutions in partnership
with commercial banks and private sector institutions.
Housing Finance Sector:
The housing finance sector
has assumed significance in the financing of housing in the country.
Formal institutions provide about 14 percent of total housing in
India. If other non-specified financial formal sector contributions
are included, this ratio rises about 32 percent. The creation of
the National Housing Bank as a supervisory institution has helped
to regulate and support the emerging structure.
HDFC commenced operations as a mortage bank. It raised large
wholesale resources (domestic and international) and lent retail
primarily to individual households. In mid-1991, it entered the
retail deposit market by offering savings and investment opportunities
to households in competition with other instruments in the financial
market. As a result of a focused strategy, the number of depositors
have risen from 56,000 in 1991 to over, 9,58,000 in 1998 (financial
Much of this success is also due to the significant contribution
made by HDFC's growing number of authorised deposit agents, who
now number over 42,000. HDFC had instituted well defined service
standards for both depositors and deposit agents which are carefully
and continiously monitored to ensure that service levels are not
only maintained but significantly improved even though the number
of transactions are increasing very rapidly.
HDFC provides multiple products on both sides of its balance sheet
in order to provide services that are best suited to its customer
base. Cumulative approvals and disbursements as of March 31, 1998
were Rs 4.33 billion and Rs 4.33 crore and Rs 3.01 billion respectively.
HDFC has had the distinction of being the first Indian private
sector institution to raise funds under the USAID Housing Guaranty
Program. The amount raised under the Program was US$ 125 million.
HDFC subsequently structured innovative currency and interest swaps
to lock into a rupee funding at fixed rates. HDFC also availed a
loan of US$ 40 million from the International Finance Corporation
HDFC has availed of a loan of pound sterling 25 million from the
Commonwealth Development Corporation (CDC), London. This is the
largest loan of its type disbursed by CDC to any Indian institution.
"HDFC has developed a network of institutions to serve
its customer base with specialised financial services through partnerships
with the best institutions in their particular fields of activity
worldwide.HDFC proposes to enter into the now nationalised insurance
sector, once this sector is deregulated and the regulatory frameworks
are in place. Insurance has direct links with the comparative advantages
that HDFC had developed over the years. Insurance has very close
links with housing finance (both being long term financial commitments).
HDFC has also submitted a proposal to the Securities and Exchange
Board of India (SEBI) to launch a Real Estate Mutual Fund'
says HDFC Public Relations Manager, Mahesh Shah.
Address: HDFC, Ramon House, H T Parekh marg, 169,
Backbay Reclamation, Mumbai - 400 020,
Phone: 282 0282 / 283 6255
Fax: 204 6758 / 204 6834
By :Mani D'Mello