Full Form Of HDFC

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01 Nov, 2023

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What Is The Full Form Of HDFC - Housing Development Finance Corporation

The full form of HDFC stands for Housing Development Finance Corporation. HDFC Bank Ltd. is a banking and financial services company based in India. It has its headquarters located in Mumbai, India, providing a lot of services and financial products to its customers.

The products of the entity include personal loans, credit card facilities, vehicle loans, wholesale and retail banking, loans with property mortgaged, etc. It is the largest company operating in the housing finance field and plays a very important and active role in the development of the sector in India.

What Is The Full Form Of HDFC - Housing Development Finance Corporation

HDFC (Housing Development Finance Corporation) is a prominent provider of financial services, including loans, credit cards, insurance, and education funding.
It specializes in mutual funds, insurance, mortgages, and educational loans, catering comprehensively to individual and business financial needs.
Founded by Hasmukh Thakordas Parekh in 1977 in Mumbai, HDFC holds significant importance in India's financial landscape.
It is headquartered in India and boasts a widespread national presence; its ownership structure encompasses a diverse mix of domestic and foreign stakeholders, including foreign institutional investors (FIIs).

Full Form Of HDFC Explained

The full form of HDFC is Housing Development and Finance Corporation, which is the largest entity in the real estate sector to provide housing related products and services to the citizens of India. It is a prominent financial institution that has a crucial role in the development and expansion of the real estate sector.

Through its services, it helps in promoting investment in homeownership. The loans, insurance policies and various other financial assistance are designed to cater to all types of investors. Not only purchase, it also encourages people or groups on individuals to engage in renovation or reconstruction of existing housing projects by taking financial assistance from HDFC. This not only leads to infrastructural development but also helps in circulation of money within the economy.

Its huge range of products and services meeting the diverse needs of customers and catering to different levels of buying or owning a property has attracted a large customer base over the years and still continue to do so successfully.

It also has many associate and subsidiary company and has taken a lot of initiative for the development of the underpreviled which is equally important for the overall development of the economy. Even though it operates under stringent rules of the Reserve Bank of India (RBI), it is committed towards a responsible financial growth and development of India.

Founder

It was founded by Hasmukh Thakordas Parekh, a philanthropist, economist, entrepreneur, and writer. He was born on 10^th March 1911 in Surat (British India). The London School of Economics awarded him the honorary Padma Bhushan and fellowship. He also played an instrumental role in developing the Industrial Credit and Investment Corporation of India, now called the ICICI bank.

Brief History Of HDFC

The Housing Development Finance Corporation was incorporated in 1994 in Mumbai, Maharashtra, as the registered office.

The first operating corporate office and branch with all services was established in Sandoz House, Worli, inaugurated by Dr. Manmohan Singh, the then Finance Minister of India.

Core Values Of The Bank

The core values are as follows:

Trust
Professional Service
Integrity, and
Transparency

The corporation's objective is to provide, professionally and systematically, housing finance and ownership.

This Corporation aims to increase the flow of resources to the housing sector by integrating domestic financial markets into the housing finance sector.

The strategies of the corporation are as follows:

Maintaining low Gross Non- Performing Assets (NPAs).
Continuously improving operational efficiency by maintaining a low cost-to-income ratio.
Increasing shareholder value by increasing the return on equity each year.

Products And Services Offered

The financial institution has a diverse range of products and services that are designed to meet various types of financial needs of people. Let us study the products in detail.

#1 - Mutual Funds

The HDFC Asset Management Company Ltd, one of the subsidiaries of HDFC Ltd., provides mutual fund services. These funds are efficiently managed by skill and knowledgeable fund managers who have good experience and are able to understand the market. This helps investors who would like to invest in the financial market but does not want to do so actively. The managers are committed to putting the interest of their clients first and help them achieve their financial goal.

#2 - General Insurance

The concept of general insurance is related to providing protection in case of any unforeseen situation related to Motor, accident, vehicle, property, travel, home, health, etc. Some of the available insurance products the corporation provides gives a wholesome protection and monetary help, which helps individuals pursue their day to day living without the fear of bearing huge expenses The insurance policies gives a mental peace and stability to their lives.

#3 - Life Insurance

The subsidiary of HDFC Standard Life Insurance Company Limited of HDFC Ltd. provides life insurance services and customized products to meet the customers' individual needs. This is very important for every individual, especially the ones who have dependent family members. The company designs the life insurance policies in such a way so that in case of any unforeseen situations, such policies successfully helps the dependent members of the policyholder to carry on with their lives as before.

#4 - Mortgage

The corporation provides finance to individuals and corporations to purchase or construct residential houses. This has provided a big boost to the real estate sector in the form of financing available to individuals with flexible terms and condition for repayment, which otherwise is not within the reach of many people due to the large investments required to buy a property.

#5 - Educational Loans

Through HDFC Credila, a Non-Banking Financial Company, the corporation provides educational loans to post-graduate and undergraduate students in India and abroad.

The shares are listed on the Bombay Stock Exchange and the National Stock Exchange.

The company's network is spread across India in approximately 2400 towns and cities with 396 offices. It also has branches in London, Dubai, Singapore, and other Middle East countries to facilitate transactions of Non-Resident Indians.

Thus, the above products and services have proved to be very beneficial for every citizen of the country and continues to do so consistently. It has grown by leaps and bounds and plans to cater to many more needs and demands that keep on arising depending on the ever changing landscape of the financial market and the society as a whole.

List Of Subsidiaries, Joint Ventures, And Associates

The subsidiaries are as follows:

#1 - HDFC Standard Life Insurance Co. Ltd

It is a long-term life insurance provider headquartered at Mumbai.

It offers individual insurance and group insurance. It is a joint venture between HDFC and Standard Life Aberdeen PLC, a UK based investment service provider.

#2 - HDFC Asset Management Company

The SEBI approved the HDFC Asset Management Company to act as the Asset Management Company for Housing Development Finance Corporation Mutual Funds on the 3^rd of July, 2000.

#3 - HDFC Ergo General Insurance Company

It is a joint venture between HDFC and ERGO International AG, an insurance company in Germany, with Housing Development Finance Corporation holding 51%, offering a wide range of products such as vehicles, health, travel insurance, etc.

#4 - GRUH Finance

Housing finance companies in which HDFC holds around 59%. It issues loans for the purchase, construction, major repairs, and renovation of residential house property.

It is also known for lending to those who do not have a formal income source, say self-employed people.

#5 - HDFC Property Fund

With the HDFC property fund's help, Housing Development Finance Corporation entered the private equity business to help investors grow with the growing Indian real estate sector.

#6 - HDFC RED

HDFC RED is a wholly-owned subsidiary of HDFC Ltd. It is an online listing platform in the real estate sector. HDFC Developers control the operations of HDFC RED.

#7 - HDFC Credila Financial Services

It is the one that has launched the education loan facilities, being the first dedicated company to provide education loans.

#8 - HDFC Pension

It was started to diversify the investment portfolio across a range of good return-seeking assets so that the long-term potential to generate income is higher.

#9 - HDFC Sales

It was formed in the year 2004 with headquarters situated in Mumbai. It serves both retail investors and high-net-worth individuals. The investment strategies and products are tailor-made to suit individual investor needs.

#10 - HT Parekh

Hasmukh Thakordas Parekh Foundation- Started under the founder's name, it is a not-for-profit organization and a non-govt. A company that was established by HDFC in the year 2012.

In short, HDFC is an Indian-based financial services corporation with a presence in insurance, pension, educational loans, personal loans, real estate and infrastructure development, general insurance, housing finance, mutual funds, and customized investment products and services. It has also formed a Sec 8 company (erstwhile Sec 25 company), i.e., a non-profit motive. It has many subsidiaries and associate companies and has also entered into joint ventures with some foreign companies.

Though the company is based in India and has operations across India's length and breadth, the company's major shareholders are Foreign institutional investors (FIIs).

Frequently Asked Questions (FAQs)

1. Is HDFC Bank a public company?

Yes, HDFC Bank is a publicly traded company. It is one of the prominent private-sector banks in India. Being publicly traded means the bank's shares are listed on stock exchanges, allowing individuals and institutional investors to buy and sell them. This enables the bank to raise public capital and operate under regulatory bodies' scrutiny.

2. Is HDFC Limited an NBFC?

HDFC Limited is not classified as a Non-Banking Financial Company (NBFC). It is a leading financial institution in India primarily focused on housing finance. While NBFCs are engaged in a broader spectrum of financial activities beyond traditional banking, HDFC Limited's core operations revolve around providing home loans and related financial services.

3. Who regulates HDFC Bank?

HDFC Bank is regulated by the Reserve Bank of India (RBI). As the central banking authority in India, the RBI oversees the functioning of banks and financial institutions. It formulates policies, issues guidelines, and supervises the operations of HDFC Bank to ensure compliance with banking regulations, financial stability, and consumer protection.