HDFC

BRICK BY BRICK GROWTH STORY
Presented by: Kadambari Koli (B-06) Vishal Kothari (B-09) Richa Priya (B-16) Nayan Savla (B-19) Chaitali Shah (B-21) Nayan Shah (B-23) Rachna Sohoni (B-37)

Overview of

Housing Finance Industry

Mortgage as a % of GDP Series 1 60 50 40 30 20 10 0 .

 Revamped Indian housing finance industry .HDFC Ltd  Established in 1978  Promoted with an initial share capital of Rs. 100 million.

Objectives of HDFC  To cater social need .promoting home ownership by providing long-term finance  To enhance residential housing stock in the country .

Organizational goals  Develop close relationships with individual households  Maintain its position as the premier housing finance institution in the country  Transform ideas into viable and creative solutions  Provide consistently high returns to shareholders  To grow through diversification by leveraging off the existing client base .

HDFC Founder  Man with a mission. gave birth to the Housing Development Finance Corporation  Started career with newely formed ICICI  1992 -Government of India honored him with the Padma Bhushan Award .trend setter in Indian financial history  Had vision for mortgage finance for housing.

H. IL&FS • Approves loan over 1 lac units in a single year .1989 1991-95 • • • • Mr.Parekh is conferred the Padma Bhushan by the GOI Mr.Deepak parekh takes over as a chairman Joint venture with GE Capital First overseas branch in Dubai .T.Milestone – 30 years 1977 -85 • Introduced loan linked deposit scheme • Introduced first retail deposit product and cumulative – interest scheme 1986-90 • First equity right issue • Partnership with India's leading financial institutions – CRISIL.

1996-2000 • Declared India's Best Managed Company -Asia money Magazine • Issues first mortgage backed securities • First private sector life insurance co. • Ranked the 5th Best Company to work for in India – Business Today 2006-Till date • ICAI confers gold shield to HDFC for 'The Best Presented Accounts • Goldman Sachs lists HDFC as one of the 7 world's best companies . in India 2001-05 • Deepak Parekh won Lifetime Achievement award the Economic Times.

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Core Services provided by HDFC  Home loan  Home Improvement loan  Home Extension loan  Short term bridging loan  Land purchase loan  Loans to Professionals for Non Residential Premises Loan  Home equity loans .

Awards & Accolades  HDFC selected as the 'Top Indian Company in FIs / NBFCs / Financial Services sector' for the Dun & Bradstreet – Rolta Corporate Awards 2008  Mr. Deepak Parekh awarded the 'Business Leader of the Year' by NDTV  Mr. Deepak Parekh conferred with the „CNBC Awaaz-CRISIL Lifetime Achievement Award for Outstanding Contribution to Real Estate‟  Ranked 3rd amongst the Asian Banking and Finance Sector for „Highest Return on Equity‟ by Asia money .

..  Corporate clients includes  Bajaj Electricals Ltd  Colgate-Palmolive India Ltd  Crompton Greaves India Ltd  HSBC Bank  Kotak Mahindra Finance Ltd… .Centre for housing finance  HDFC's Training Centre  Located in the serene ambience of Lonavla  Provides  Technical assistance to national governments and housing finance institutions….  Managerial training for housing finance institutions….

Associate Companies .

 GRUH Finance Ltd.  HDFC Holdings Ltd.  HDFC Property Ventures Ltd.  Credit Information Bureau (India) Ltd  HDFC Securities .  HDFC Investments Ltd.Other Subsidiaries  HDFC Trustee Company Ltd.  HDFC Ventures Trustee Company Ltd.  HDFC Developers Ltd.

Holdings .

the parent company  IPO in India in 1995  Listed in NSE. NYSE(ADR) . BSE. India  Promoted by HDFC.HDFC BANK  HDFC Bank was incorporated in August 1994  Among the first in new generation commercial banks  Registered office in Mumbai.

New York. London & Singapore .NETWORK  1416 branches  3570 ATM‟s in the country  550 cities in India  All branches are OLRT connected  500 locations serviced through Telebanking  Representative offices in Hong Kong.

 Four core values .  Best practices in terms of ethical standards. Customer . professional integrity.Business Focus  World Class Indian Bank  Benchmarking against international standards. corporate governance and regulatory compliance  To build sound customer franchises across distinct businesses.Operational Excellence.

Offerings  Wholesale Banking Services  Retail Banking Services  Treasury .

 Delivering more products to more customers.  Develop innovative products and services that attract targeted customers and address inefficiencies in the Indian financial sector.  Maintaining current high standards for asset quality through disciplined credit risk management.Business Strategy  Increasing market share in India‟s expanding banking.  Delivering high quality customer service. .

. HDFC Bank chosen as one of Asia Pacific‟s best 50 companies by Forbes magazine.' HDFC Bank ties up with Qatar National Bank.  HDFC Bank merged with CENTURION BANK OF     PUNJAB in 2007.Achievements  HDFC Bank merged with TIMES BANK in 2000. 'Best Bank in the Private Sector 2008. HDFC Bank wins the Asian Banker Best Retail Bank in India Award 2008 for outstanding performance.

Milestones !!!!
 HDFC follows the model of a sound corporate

governance
 The bank was amongst the first four companies, which

subjected itself to a Corporate Governance and Value Creation (GVC) rating by CRISIL
 A very sound and effective risk management system in

place to create a less risk assets portfolio
 Uses Neural Technologies for risk management in its

Credit Cards and other Retail Assets portfolios

HDFC AMC
 Incorporated on 10th December, 1999  Approved as AMC for HDFC Mutual Fund on 3rd

July, 2000

Particulars HDFC Limited

% of the paid up equity capital 60 40

Standard Life Investments Limited

 Zurich India Mutual Fund divested its Asset

Management business in India  HDFC AMC acquired Zurich‟s Schemes on 19th June, 2003

VISION

Why HDFC Mutual Fund???
 Investment Philosophy
 Offerings  Achievements

 As on 30 September 09
 Average Asset under Management: Rs. 90,427.25 cr.  No. of investors: 3,283,463  No. of ARN certified distributors: 30,282

Standard Life (Mauritius) 2006 Percentage holding 72.43 26. 5564.HDFC Standard Life  Joint Venture between Company’s Name HDFC Ltd.00  Financial Expertise  Range of Solutions  Track Record So Far  Gross Premium Income – Rs.69 crs  27 lakh policies in force .

the easiest to deal with. which means that we are the most trusted company. .  'The most obvious choice for all'. offer the best value for money.Vision  'The most successful and admired life insurance company. and set the standards in the industry'.

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& ERGO International AG  “Right Insurance Solution” for ALL  46 cities with 52 branch offices with an employee strength of 650 professionals .HDFC Ergo General Insurance  74:26 Joint Venture between HDFC Ltd.

Vision  "To be the most admired insurance company that enables the continued progress of customers by being responsive to their needs" .

Values  Sensitivity  Excellence  Ethics  Dynamism .

Mumbai.  Facilitating Buying. Kolkata.HDFC Realty  Wholly Owned Subsidiary of HDFC Ltd. Kochi & Hyderabad. Bangalore. Delhi / NCR. Selling or Leasing of Residential/Commercial Property  Geographic Reach . . Navi Mumbai. Pune.

“HR Perspective At HDFC” .

 Actions undertaken by HR dept to make their role strategic  Aligning people with strategy  Empower managers and employees  Drive leadership development .Strategic Human Resource  Linking of human resources with strategic goals and objectives  Involving HR function as a strategic partner.

“ HDFC's finest investment is in its Human Resources. They are the building blocks on which the company's performance & productivity is based” -H T Parekh . It draws its personnel from many disciplines.

Culture & Values at HDFC • Open & Informal Culture • Learning by Doing • Value.Teamwork .Integrity.

 Training programmes on Personal Leadership Excellence.  Guest Lecturers and Tie up with IIM Ahemdabad .  New training initiatives in Lead Management. Art of Living. rural housing. cross selling of financial products.Training at HDFC  Programmes are based on upgradation of competencies and skills. Effectiveness.

Recruitment Practices at HDFC  Campus Recruitment at Tier one campus  Localisation Strategy  No Lateral recruitment .

CSR Initiatives by HDFC  To make a positive impact on economic and human development.  Shelter Assistance Reserve Sense India Mobile Creches Sahaj Deep Griha Society .

Comparison of HDFC & ICICI Bank HR Practices Parameters HDFC Bank ICICI Bank Employee Strength 52687(March’09) 36.000(Jun’09) Recruitment Concentrates on Localization strategy “Karo Sifarish” & “Back Pack Trainers Concentrates on lateral recruitment/Interview Centers Training Training Talents .

Financial analysis of HDFC ltd .

Core business .

.HDFC LTD.

Balance sheet of HDFC (liabilities) .

Balance sheet of HDFC (assets) .

Continuing growth momentum .

Sources of mortgages at HDFC ltd .

Loan profile .

Fund raising at HDFC .

Consistent performance .

Utilisation of reserves .

Income generated & expenditure incurred .

Sum of the parts valuation method .

Subsidiaries of HDFC .

Financials of subsidiary .

HDFC bank .

HDFC standard life .

Average premium .

AUM .

Expense ratio .

Claims repudiation ratio .

Result (Q2) & Ratio analysis .

5 230.9 Can Fin Homes Sahara Housing SBI Home Finance Coral India Fin.5 0.2 ROCE (%) 12.Fin.0 11.5 11.9 0.0 25.0 0.2 1.9 9.8 9.0 -1.2 0.2 0.9 0.4 4.7 0.45 4 4.2 1.87 15 8.2 11. in Cr.8 9.3 .4 2.4 17.0 21.3 7.2 11.3 -0.0 48.0 1.9 0.) 78.0 18.3 3.89 810 526.0 0.0 0.5 0.9 12.2 20.1 0.984.5 0.0 0.1 0.0 0. Dewan Housing GRUH Finance GIC Housing Fin Market Cap (Rs.6 2.0 13.07 5.0 0. Ind Bank Housing India Home Happy Home Profi Manraj Hsg.7 6.0 D/E (x) 6.5 0.618.0 0.5 13.Fin.0 10.0 0.9 14.2 5.0 20.7 1.551 1.8 6. Intl.1 11.1 3.5 10.9 24.5 17.1 8.7 15.Fin. 181 130.8 5.1 6.9 0.1 70.82 7.5 9.45 23 19.1 11.9 0.3 11.5 54.03 6 5.Ratio analysis Company HDFC LIC Housing Fin.0 20.0 0.38 P/E P/BV EV/EBIDTA (TTM) (TTM) (x) (x) (x) 31.6 24. Housg.5 8.8 -0.2 26.2 7.6 ROE (%) 18.1 0. Parshwa.0 12.0 9.Hsg.0 2.3 2.0 2.9 0.9 7.

09 .Half year result analysis SEPT.

warrants @ 275 converted @ 3000  Raised 4000 crore by 2-3 year NCD @ 7-8%  Gain from unrealised investment is 13.Key highlight of result SEPT.2 crores  10.300 crores .9 mn. 09  Loan approvals and disbursements up 18% & 26%  Profit on sale of investment up 171% @61.

POLITICAL RBI Policies Tax / Benefits ECONOMICAL FDI Norms Effect of slow-down SOCIO-CULTURAL Benefits to Society Wel-fare Programmes TECHNOLOGICAL IT Solutions .

STP ANALYSIS  Segmentation • Corporate • SMEs • NRIs • Personal Target • Retail • Wholesale • Capital market .

STP ANALYSIS Positioning • AAA rating • High standard services .

• Leader in home loan segment • Right Strategy for products. . • Untapped rural market • Leader in home loan segment • Fast growing insurance business Opportunity Threat • Risk of fraud & NPA • Major private players. • Mere international presence. • Increase in funding cost. • RBI policies. • Not very aggressive in M&A. • Distribution Structure Strength Weakness • Strict policy of funding.

Marketing Mix in Financial Services Product Price People Place Promotion .

100 lacs or 100% of the cost of extension. bungalow from developers  Existing freehold properties  Properties in an existing or proposed co-operative housing society or apartment  Owner's association  Home Extension Loans  To facilitate the extension of an existing dwelling unit. whichever is lower  Maximum duration of 20 years and is to be repaid in equated monthly installments . row house.  The maximum amount of such a loan is Rs.PRODUCT MIX HDFC Ltd  Home Improvement Loans  Flat.

. through sale of the existing dwelling unit  The existing loan gets transferred to new property with the increased loan amount  Saves the prepayment processing charges for loan conversion  Top . Purchase of Furniture. Home Conversion Loans  Existing HDFC borrowers can avail of a Home Conversion Loan to acquire another dwelling unit. Top up loans can given after 1 to 2 years of the final disbursement of the existing loan or upon possession/completion of the existing financed property. Business Requirements.Up Loans  Encashing the investment in a house without having to dispose it off to fund various needs related to Higher Education.  The maximum term of the loan is 10 years.

MUTUAL FUND Banking and Savings •Corporate and Institutional •Corporate Finance •Treasury •Investment Banking •Institutional Equities •Investments and Insurance •Life Insurance •Mutual Funds •Gold •Share Trading •Loans and Borrowings •Car Finance •Commercial Loans •Home Loans •Personal Loans Standard Life insurance HDFC SECURITIES •Banking and Accounts •Convenience Banking •Credit Cards •NRI Services •DematDeposits •Protection Plans •Term Assurance Plan •Home Loan Protection Plan •Loan Cover Term Assurance Plan •Investment Plans •Unit Linked Wealth Maximiser Plus •Single Premium Whole Of Life plan •Pension Plans •Personal Pension Plan •Unit Linked Pension Plus •Unit Linked Pension •Savings Plan •Endowment Assurance Plan •Savings Assurance Plan •Assurance Plan •Money Back •Children's Plan •Unit Linked Endowment •Unit Linked Endowment Suvidha • Equity / Growth Fund • Children's Gift Fund • Fixed Maturity Plan • Liquid Funds • Debt/ Income Fund • Quarterly Interval Fund • Buying and selling shares • Subscribing to IPOs • Subscribing to mutual funds • Trading in derivatives .

Applicant and Co. Maximum Term 20 years subject to your retirement age.PRICING MIX  Home Loan  Maximum loan     85% of the cost of the property and based on the repayment capacity of the customer.Applicant to the loan Adjustable Rate Home Loan Fees  Home Improvement Loan  Maximum loan  Existing customer  New customer .

Applicant to the loan Adjustable Rate Home Loan Fees  No Charges for  Replacement of cheques  Income Tax Certificates  Accelerated Repayment Option .Maximum Term Applicant and Co.Applicant to the loan Fees. No Charges for  Replacement of cheques  Income Tax Certificates  Accelerated Repayment Option Land Purchase Loan Maximum loan Maximum Term Applicant and Co.

• Cash advance limit 10% of credit limit • Annul fee 700 • Credit revolving charges 3.repayment amt.min 200 rs.5% of transaction amount • Reissue 100rs • Service tax applicable on all fees &charges HDFC Children's gift fund SILVER CREDIT CARD • Generation of long term capital appreciation • Minimum Application Amount • For new investor 5000 and there after • For existing investor rs 1000 and any amount thereafter • Average life expectancy is 75 yrs .• Interest free period 50 days • Min.5% • Railway ticket purchase 30 +2.39% annually • Cash advance charges2.25 pm.5%.5% of amount withdrawn • Late payment charges • Petrol transaction charges 2.

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„Papa kabhi bhi Gum Nahin Honge‟in 08 This campaign was launched with 360 degree approach Tag line “we understand your world”…making its presence felt The message is clear and consumer connect is ubiquitous . launched its life insurance campaign.PROMOTION MIX:  RSCG India recently launched two TVC campaigns for HDFC     Bank titled 'Moon' and 'Lost Boy'.

The card for wherever you go .360 degree Approach HDFC's International Silver Credit Card .

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