The company provided housing finance to individuals and corporations for purchase/construction of residential houses. The type of loans offered by company included 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. It was one of the largest providers of housing loans in India. In its annual report for fiscal year 2012–13, the company disclosed that it disbursed approx. INR 456,000 crores in 35 years of its existence for a total of 4.4 million housing units.
The average loan profile amounted 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 the first company to do so.
Beginning in 2000, the company provided life insurance through its subsidiary HDFC Standard Life Insurance company Limited. It offered 33 individual products and eight group products. It used the HDFC group network to cross-sell by offering customized products. It operated 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. HDFC Life has over 15,000 employees.
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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
Mutual funds
HDFC provided 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.
Operations
HDFC's distribution network spanned 396 outlets (including 109 offices of HDFC's distribution company HDFC Sales Private Limited) which catered to approx. 2,400 towns and cities in India. To cater to Non-Resident Indians, HDFC had offices in London, Singapore and Dubai and service associates in Middle Eastern countries. The first international office was opened in Dubai in 1996 and in the 2000s expanded to London and Singapore.
In addition, HDFC covered over 90 locations through its outreach programmes. HDFC's marketing efforts were 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 had 232 institutional owners and shareholders filing through 13D/G or 13F forms with the Securities Exchange Commission. The largest investor amongst them was Vanguard International Growth Fund.
Major subsidiaries and associates
HDFC's key associate and subsidiary companies included HDFC Bank, HDFC Life Insurance Company, HDFC ERGO General Insurance Company, HDFC Asset Management Company, and HDFC Capital Advisors.
HDFC Bank
HDFC held 26.14% of shares in HDFC Bank. HDFC Bank sources home loans for HDFC for a fee. The key business areas of HDFC Bank were wholesale and retail banking and treasury operations. As of April 2023, its market capitalisation was ₹941,386 crore (US$98 billion), making it India's third largest publicly traded company.
HDFC Life Insurance Company
HDFC held approx. 48.7% of shares in HDFC Life and was the sole promoter of the company, as of May 2023. In September 2013, it was ranked third in terms of market share of private life insurance companies in India. On the same date, it had a network of approx. 72,000 financial consultants to sell its policies.
HDFC Asset Management Company
HDFC formed HDFC Mutual Fund as a joint venture with Standard Life Investments in 1999. HDFC Asset Management Company was the investment manager of HDFC Mutual Fund's schemes. HDFC held a 52.6% stake and was the sole promoter of the company as of June 2023. HDFC AMC managed 68 schemes comprising debt, equity, exchange-traded fund and fund of fund schemes. Average assets under management (AUM) as at the end of March 2022 was ₹4.07553 trillion. It was ranked third in the industry in India on the basis of average assets under management.
HDFC ERGO General Insurance Company
HDFC formed this general insurance company with ERGO Insurance Group. HDFC held 50.5% and ERGO held 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 direct premium in first half year of FY 2013–14. The total employee strength of the company as of March 31, 2013 was 1,389.
HDFC Capital Advisors
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%. In 2022, two wholly owned subsidiaries of HDFC, viz. HDFC Property Ventures and HDFC Venture Capital, were merged into HDFC Capital Advisors.
Former subsidiaries and associates
HDFC Credila Financial Services
HDFC Credila was a non-banking finance company and the first Indian lender to exclusively focus on education loans. The company lent to under-graduate and post-graduate students studying in India or abroad. HDFC held about 90% shares in this company. 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$940 million).
HDFC RED
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. In 2018, HDFC sold HDFC RED and HDFC Realty to Quikr for ₹357 crore (US$54.82 million).
GRUH Finance
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. It has a retail network of 136 offices across 7 states in India.
On 17 October 2019, GRUH Finance formally merged with Bandhan Bank, giving HDFC a 14.9% stake in Bandhan.
