Case Analysis: HDFC: Housing Development and Finance Corporation, India

Abstract

Housing Development Finance Corporation Limited (H.D.F.C) was set up on 17th October, 1977 by I.C.I.C.I. out of the consideration that a specialised institution was needed to channel household savings including funds from the capital market into the housing sector. The main objective of H.D.F.C. is to develop significant expertise in retail mortgage loans to different market segments, to have a large corporate client base for its housing related credit facilities and to support or aid in the promotion of home ownership. Their mission is to be 'a World Class Indian Bank,' benchmarking themselves against international standards and best practices in terms of product offerings, technology, service levels, risk management and audit & compliance. The objective is to build sound customer franchises across distinct businesses so as to be a preferred provider of banking services for target retail and wholesale customer segments, and to achieve a healthy growth in profitability, consistent with the Bank's risk appetite. They are committed to do this while ensuring the highest levels of ethical standards, professional integrity, corporate governance and regulatory compliance.