Against the milieu of rapid urbanization and a changing socio-economic scenario, the demand for housing has grown explosively. The importance of the housing sector in the economy can be illustrated by a few key statistics. According to the National Building Organization (NBO), the total housing shortfall is estimated to be 19.4 million units, of which 12.76 million units is from rural areas and 6.64 million units from urban areas. The housing industry is the second largest employment generator in the country.
Background & Objectives
The ideal way to connect with the core of any company is to understand its background and objectives. We at HDFC aspire to provide our customers with unique home loan solutions and make home ownership as easy and simple as unlocking a door with a key.
Background
HDFC was incorporated in 1977 by Mr. Hasmukhbhai Parekh with the primary objective of meeting a social need - that of promoting home ownership by providing long-term finance to households. The launching of HDFC was meant to be one small step in dealing with the availability of housing accommodation in India which was then virtually non-existent. HDFC as a pioneer launched India's first specialised home loan company with an initial capital of Rs. 100 million.
Business Objective
Our primary objective is to enhance residential housing stock in the country through the provision of housing finance in a systematic and professional manner, and to promote home ownership. We aim to increase the flow of resources to the housing sector by integrating the housing finance sector with the overall domestic financial markets.
Our goals:
- Develop close relationships with individual households.
- Maintain our position as the premier housing finance institution in the country.
- Transform ideas into viable and creative solutions.
- To grow through diversification by gaining leverage from our existing client base.
- To nurture the values and ethos of Brand HDFC through all its Subsidiaries and Associate Companies.
Our growth strategies:
- Increase the return on equity each year by 1 percentage point in order to maximise shareholder value;
- Maintain gross Non-Performing Assets (NPAs) below 1%;
- Consistently grow the loan book;
- Improve operational efficiency by consistently bringing down the cost to income ratio.
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