Housing Development Finance Corporation

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Housing Development Finance Corporation Limited
BSE: 500010
BSE SENSEX Constituent
NSE NIFTY 50 Constituent
IndustryFinancial services
Founded1977; 46 years ago (1977)
Defunct1 July 2023; 5 months ago (1 July 2023)
FateMerged with HDFC Bank[1]
HeadquartersMumbai, Maharashtra, India
Area served
Key people
ProductsMortgage loans
RevenueIncrease 152,997.64 crore (US$19 billion)[3] (2023)
Increase 32,130.55 crore (US$4.0 billion)[3] (2023)
Increase 26,160.90 crore (US$3.3 billion)[3] (2023)
AUMIncrease 432,084.97 crore (US$54 billion)[4]
Total assetsIncrease 1,091,528.84 crore (US$140 billion)[5] (2023)
Total equityIncrease 201,474.50 crore (US$25 billion)[5] (2023)
Number of employees
3,226 (2021)[6]
SubsidiariesHDFC Bank
HDFC Mutual Fund[7]
HDFC Credila[8]

Housing Development Finance Corporation Limited (HDFC) was an Indian private sector mortgage lender based in Mumbai.[9][10] Apart from being the biggest housing finance company in India,[11] it also had a presence in banking, life and general insurance, asset management, venture capital and deposits through its associate and subsidiary companies.[9]


It was founded in 1977 with the support from India's business community,[12][13] as the first specialised mortgage company in India and main company among HDFC group of companies.[12][14] HDFC was promoted by the Industrial Credit and Investment Corporation of India (ICICI).[15] 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.[12]

In 2000, HDFC Asset Management Company launched its mutual fund schemes.[15] 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.[12]

Products and services[edit]


The company provides housing finance to individuals and corporates for purchase/construction of residential houses.[12][16] 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.[12] It is one of the largest providers of housing loans in India.[12][16] 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.[12]

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.[14] HDFC Life has over 15,000 employees.[17]

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[14]

Mutual funds[edit]

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.[18]


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[12] and service associates in Middle East countries.[9]

The first overseas office was opened in Dubai in 1996 and in 2000's was expanded to London and Singapore.[12]

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.[19] Largest investor amongst them is Vanguard International Growth Fund.[20]

Major subsidiaries and associates[edit]

HDFC's key associate and subsidiary companies include HDFC Bank, HDFC Life Insurance Company, HDFC ERGO General Insurance Company, HDFC Asset Management Company, and HDFC Capital Advisors.[14]

HDFC Bank[edit]

HDFC holds 26.14% of shares in HDFC Bank. HDFC Bank sources home loans for HDFC for a fee.[21] 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$120 billion), making it India's third largest publicly-traded company.[22]

HDFC Life Insurance Company[edit]

HDFC holds approx. 48.7% of shares in HDFC Life[23] and is the sole promoter of the company, as of May 2023.[24] In September 2013, it was ranked third in terms of market share of private life insurance companies in India.[14] On the same date, it had a network of approx. 72,000 financial consultants to sell its policies.[14]

HDFC Asset Management Company[edit]

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.[25] HDFC holds a 52.6% stake and is the sole promoter of the company as of June 2023.[26] HDFC AMC manages 68 schemes comprising debt, equity, exchange traded fund and fund of fund schemes.[14] Average assets under management (AUM) as at the end of March 2022 is 4.07553 trillion. It is ranked first in the industry in India on the basis of average assets under management.

HDFC ERGO General Insurance Company[edit]

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.[14] The total employee strength of the company as of March 31, 2013 was 1,389.[17]

HDFC Capital Advisors[edit]

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%.[27] In 2022, two wholly-owned subsidiaries of HDFC, viz. HDFC Property Ventures and HDFC Venture Capital, were merged into HDFC Capital Advisors.[28]

Former subsidiaries and associates[edit]

HDFC Credila Financial Services[edit]

HDFC Credila is a non-banking finance company and was the first Indian lender to exclusively focus on education loans.[29] The company lends to under-graduate and post-graduate students studying in India or abroad. HDFC held about 90% shares in this company.[14] 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).[30]

HDFC RED[edit]

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.[31][14] In 2018, HDFC sold HDFC RED and HDFC Realty to Quikr for 357 crore (US$54.82 million).[32]

GRUH Finance[edit]

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.[14] It has a retail network of 136 offices across 7 states in India.[14]

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

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,[33] and the National Stock Exchange of India where it is a constituent of the S&P CNX Nifty.[34]

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.[35]

Shareholders (as of 30-September-2013) Shareholding[35]
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.[16] 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.[14]
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.[36]

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.[10][37]
  • In May 2013, Forbes listed it at #561 in the Global 2000 list of largest companies.[38]
  • 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'.[39]

See also[edit]


  1. ^ "HDFC-HDFC Bank Merger".
  2. ^ a b c "Annual Report 2012-13" (PDF). HDFC. Retrieved 20 November 2013.
  3. ^ a b c "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. ^ a b "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. ^ a b c d "About HDFC". HDFC. Retrieved 19 November 2013.
  10. ^ 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.
  11. ^ "HDFC finishes FY23 in style". Moneycontrol. 5 May 2023. Retrieved 27 June 2023.
  12. ^ a b c d e f g h i j "Housing Development Finance Corp. Ltd". Nikkei Asia. 28 January 2020. Retrieved 18 May 2021.
  13. ^ "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.
  14. ^ a b c d e f g h i j k l m "Investor Presentations: Quarter Ended March, 2017" (PDF). HDFC Limited. 17 May 2017. Retrieved 20 May 2017.
  15. ^ a b "Company History – Housing Development Finance Corporation Ltd". Economic Times. Retrieved 27 November 2013.
  16. ^ a b c "Business Responsibility Report 2012-13" (PDF). HDFC. Retrieved 20 January 2013.
  17. ^ a b "Annual Report of Subsidiaries for FY 2012–13" (PDF). HDFC. Retrieved 27 November 2013.
  18. ^ "Average AUM". Association of Mutual Funds in India. Retrieved 8 December 2013.
  19. ^ "FY Report 2019 : HDFC" (PDF). Retrieved 2 May 2020.
  20. ^ "HDFC Institutional Ownership – HOUSING DEVELOPMENT FINANCE CORP.LTD. Stock". fintel.io. Retrieved 2 May 2020.
  21. ^ "Investor Presentations: Quarter Ended March, 2013" (PDF). HDFC. Retrieved 27 November 2013.
  22. ^ 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.
  23. ^ "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.
  24. ^ "Abrdn exits HDFC Life, sells entire stake for Rs 2,069 cr". The Economic Times. 31 May 2023. Retrieved 9 July 2023.
  25. ^ "HDFC Asset Management Company Limited" (PDF). CARE Ratings. Retrieved 22 February 2023.
  26. ^ "Abrdn Investment sells entire HDFC AMC stake". The Hindu Businessline. 20 June 2023. Retrieved 27 June 2023.
  27. ^ 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.
  28. ^ 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.
  29. ^ "Education Loan | HDFC Credila". hdfccredila.com.
  30. ^ "HDFC sells education loan arm HDFC Credila to PE firms for Rs 9,060 crore". Business Standard. 20 June 2023. Retrieved 27 June 2023.
  31. ^ "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.
  32. ^ "Quikr buys HDFC Red and Realty for Rs 357 crore". Moneycontrol. 14 February 2018. Retrieved 27 June 2023.
  33. ^ "Scripwise Weightages in S&P BSE SENSEX". BSE India. Retrieved 16 November 2013.
  34. ^ "Download List of CNX Nifty stocks (.csv)". NSE India. Retrieved 16 November 2013.
  35. ^ a b "Shareholding pattern". HDFC Limited. 30 September 2013. Retrieved 16 November 2013.
  36. ^ "HDFC Training Centre". HDFC. Retrieved 27 November 2013.
  37. ^ "India's Best Boards 2013: Kumar Birla-led jury finds only five winners". Economic Times. 26 July 2013. Retrieved 27 November 2013.
  38. ^ "HDFC on the Forbes Global 2000 list". Forbes. May 2013. Retrieved 27 November 2013.
  39. ^ "Best companies to work for 2012". Economic Times. 16 July 2012. Retrieved 20 November 2013.

External links[edit]