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Housing Development Finance Corporation Ltd

BSE Code : 500010 | NSE Symbol : HDFC | ISIN:INE001A01036| SECTOR : Finance |

NSE BSE
 
SMC up arrow

2,844.10

49.00 (1.75%) Volume 280564

21-Oct-2021 EOD

Prev. Close

2,795.10

Open Price

2,814.00

Bid Price (QTY)

2,844.10(581)

Offer Price (QTY)

0.00(0)

 

Today’s High/Low 2,857.40 - 2,797.85

52 wk High/Low 2,896.00 - 1,906.85

Key Stats

MARKET CAP (RS CR) 514055.97
P/E 42.92
BOOK VALUE (RS) 599.910862
DIV (%) 1150
MARKET LOT 1
EPS (TTM) 66.23
PRICE/BOOK 4.73887068909247
DIV YIELD.(%) 0.81
FACE VALUE (RS) 2
DELIVERABLES (%) 69.45
4

News & Announcements

20-Oct-2021

Volumes soar at PNB Housing Finance Ltd counter

20-Oct-2021

Housing Development Finance Corporation Ltd - Housing Development Finance Corporation Limited - Loss of Share Certificates

19-Oct-2021

Housing Development Finance Corporation Ltd - Housing Development Finance Corporation Limited - Loss of Share Certificates

18-Oct-2021

Housing Development Finance Corporation Ltd gains for fifth session

05-Oct-2021

HDFC to convene board meeting

28-Sep-2021

HDFC allots 2.56 lakh equity shares under ESOP

23-Sep-2021

HDFC allots 3.64 lakh equity shares under ESOP

21-Sep-2021

HDFC unveils special home loan rate at 6.70%

Corporate Actions

Bonus
Splits
Dividends
Rights
Capital Structure
Book Closure
Board Meeting
AGM
EGM
 

Financials

Income Statement

Standalone
Consolidated
 

Peers Comparsion

Select Company Name BSE Code NSE Symbol
AAVAS Financiers Ltd 541988 AAVAS
Apex Capital and Finance Ltd 541133
Aptus Value Housing Finance India Ltd 543335 APTUS
Awas Ayogen Vittnigam Ltd 526975
Can Fin Homes Ltd 511196 CANFINHOME
Coral India Finance & Housing Ltd 531556 CORALFINAC
Dewan Housing Finance Corporation Ltd 511072 DHFL
GIC Housing Finance Ltd 511676 GICHSGFIN
GRUH Finance Ltd(Merged) 511288 GRUH
Happy Home Profin Ltd (Wound-up) 531451
Housing & Urban Development Corporation Ltd 540530 HUDCO
Ind Bank Housing Ltd 523465
India Home Loans Ltd 530979
Indiabulls Housing Finance Ltd 535789 IBULHSGFIN
International Housing Finance Corporation Ltd 530781
Kamakshi Housing Finance Ltd 530399
LIC Housing Finance Ltd 500253 LICHSGFIN
Madhur Housing Finance Ltd (Merged) 531383
Manraj Housing Finance Ltd 530537
Mehta Housing Finance Ltd 511740
Oriental Housing Development Finance Corp Ltd 511752
PNB Housing Finance Ltd 540173 PNBHOUSING
Reliance Home Finance Ltd 540709 RHFL
Repco Home Finance Ltd 535322 REPCOHOME
Sahara Housing Fina Corporation Ltd 511533
SBI Home Finance Ltd 500379 SBIHOMEFIN
SRG Housing Finance Ltd 534680
Star Housing Finance Ltd 539017

Share Holding

Category No. of shares Percentage
Total Foreign 1306655436 72.26
Total Institutions 309778839 17.13
Total Govt Holding 2490832 0.14
Total Non Promoter Corporate Holding 19994828 1.11
Total Promoters 0 0.00
Total Public & others 174393752 9.55
Total 1808209833 100
  • Total Foreign
  • Total Institutions
  • Total Govt Holding
  • Total Non Promoter Corporate Holding
  • Total Promoters
  • Total Public & others

About Housing Development Finance Corporation Ltd

Housing Development Finance Corporation Limited (HDFC) was incorporated on 17 October 1977 as the first specialized Mortgage Company in India. The principal business is to provide finance to individuals, corporate and developers for the purchase, construction, development and repair of houses, apartments and commercial property in India. The business is conducted through its branches in India and its overseas offices in London, Singapore and Dubai supported by a network of agents for sourcing loans as well as deposits and service associates in the Middle East region, to provide housing loans and property advisory services to non-resident Indians (NRIs) and persons of Indian origin (PIOs). HDFC is the holding company for investments in its associates and subsidiary companies. HDFC's product range includes loans for purchase and construction of a residential unit, purchase of land, home improvement loans, home extension loans, non-residential premises loans for professionals and loan against property, while its flexible repayment options include Step Up Repayment Facility (SURF) and Flexible Loan Installment Plan (FLIP). The company's subsidiaries include HDFC Developers Ltd, HDFC Investments Ltd, HDFC Holdings Ltd, HDFC Trustee Company Ltd, HDFC Realty Ltd, HDFC Property Ventures Ltd, HDFC Sales Pvt Ltd, HDFC Ventures Trustee Company Ltd, HDFC Venture Capital Ltd, HDFC Ergo General Insurance Company Ltd, HDFC Standard Life Insurance Company Ltd, GRUH Finance Ltd, HDFC Asset Management Company Ltd and HDFC Bank Ltd. Housing Development Finance Corporation Ltd was incorporated in the year 1977. The Corporation is established with the primary objective of meeting a social need that of promoting home ownership by providing long-term finance to households for their housing needs. The company was promoted with an initial share capital of Rs. 100 million. In the year 1979, the Corporation introduced HDFC Certificate of Deposit Scheme. In the year 1981, they introduced their first retail Deposit Product. They promoted a wholly owned subsidiary, HDFC Developers during the year. In the year 1982, the Corporation introduced the Line of Credit Product (LOC) for employee owned housing. In the year 1985, the Corporation introduced the Home Savings Plan based on the 'Bausparkassen' model, West Germany and the 'Step-up Repayment Facility'. In the year 1988, the Corporation in with India's leading financial institutions and commercial banks promoted Gujarat Rural Housing Finance Corporation Ltd (GRUH Finance), Housing Promotion and Finance Corporation Ltd (now SBI Home Finance), Can Fin Homes Ltd and Infrastructure Leasing and Financial Services (IL&FS), and the Credit Rating Information Services of India Ltd (CRISIL). They introduced Telescopic Loan Plan and Short Term Bridging Loan products. In the year 1989, the Corporation introduced two new products, namely Home Improvement loans & Home Extension loans. In the year 1990, the Corporation in association with the United Nations Centre for Human Settlements promoted the Coalition of Housing Finance Institutions in Asia. In the year 1991, they re-launched their retail fixed deposit products. In the year 1993, the company made a joint venture with General Electric Capital Corporation of US to promote Countrywide Consumer Financial Services Ltd for consumer finance. In the year 1994, the Corporation introduced Non-Residential Premises Loans for Individuals. In the year 1995, the Corporation made a Strategic alliance with NatWest Markets (UK) and promoted the HDFC Bank. They made a joint venture with IL&FS and Colliers Jardine Asia Pacific Ltd and promoted Colliers Jardine India Property Services Ltd. Also, they signed a MoU with Standard Life Assurance Co. of UK for life insurance. In the year 1997, the Corporation promoted the first private sector housing finance company, namely Delta Brac Housing Finance Corporation Ltd in Bangladesh. In the year 1998, the Corporation in partnership with a South-based NGO launched the Indian Association for Savings & Credit (IASC), a pioneering micro-finance institution operating in the states of Tamil Nadu and Kerala. Also, they introduced Home Equity Loans and Corporate Employees Group Finance Arrangement. In the year 1999, the Corporation invested in a new Housing Finance company in Sri Lanka. They launched the Corporation website www.hdfcindia.com (now hdfc.com). Also, they introduced the Adjustable Rate Home Loans and became the first housing finance institution to do so. In the year 2000, the Corporation inaugurated a new HDFC Standard Life office in Mumbai. They launched their first Property Fair and they issued their first Mortgage Backed Securities. The Corporation made a joint venture with Mahindra & Mahindra group and promoted propertymartindia.com, a website for providing a range of real estate services. During the year, the Corporation acquired the entire shareholding of Hometrust Housing Finance Company Ltd. Also, GRUH became a subsidiary of the Corporation. They made a joint venture with TCS and promoted Intelenet Global Services Limited for IT enabled services. Also, they entered into joint venture with Standard Life Investments for promoting the HDFC Mutual Fund. In the year 2001, the Corporation in association with State Bank of India, Dun & Bradstreet and Trans Union International Inc. (TU) promoted Credit Information Bureau (India) Ltd. They opened their 100th office at Amristar. In the year 2002, the company made a joint venture with Chubb Corporation, USA and promoted HDFC-Chubb General Insurance Company Ltd for non-life insurance. In June 2003, they singed a USD 200 million-loan agreement with International Finance Corporation (IFC), Washington. In May 2003, the Corporation signed a Technical Service Contract with Egyptian American Bank for providing technical assistance for setting up Egypt's first private sector led mortgage finance company Egyptian Housing Finance Company. In February 2005, the Corporation entered into an implementation agreement with NHB and Asian Development Bank for technical assistance for a study on the development of an agency/secondary mortgage institution to facilitate issuance of residential mortgage backed securities along similar lines as Fannie Mae in USA. During the year 2006-07, the Corporation approved 8 schemes in the area of low-income housing and micro-enterprise financing by way of financial intermediation to partner non-government organisations and micro-finance institutions. They divested their equity holding in HDFC-SL in favour of Standard Life Assurance Company, UK for a consideration of Rs. 5.66 crore. During the year 2007-08, the Corporation approved 16 new schemes under the KfW Entsicklungsbank lines in the area of low-income housing and micro-finance by way of financial intermediation to partner non-government organisations across India. They launched two major advertising campaigns, namely 'Asset Plus' and 'Empowerment'. 'Asset Plus' was launched primarily to create awareness about home equity loans. 'Empowerment' highlighted the fact that the Corporation's employees are empowered to deploy all resources available to them to provide professional services to customers. During the year, the Corporation acquired the entire 26% of the equity of HDFC Chubb General Insurance Company Ltd from Chubb Global Financial Service Corporation, USA, consequent to which the company became a wholly owned subsidiary of the Corporation. In June 2007, consequent to a preferential offer by HDFC Bank Ltd, the Corporation acquired 13,582,000 shares of HDFC Bank for a consideration of Rs. 1,390.11 crore. In October 2007, the Corporation and Standard Life Investments realigned their shareholding in HDFC Asset Management Company Ltd. Accordingly; the Corporation increased their stake to 60% in HDFC-AMC by acquiring 9.9% from Standard Life Investments. Also, the Corporation and ERGO International AG (ERGO), the primary insurance entity of Munich Re Group (Germany) entered into a joint venture, where by HDFC sold 26% equity stake of the company to ERGO. As a result of this new joint venture, the company was named HDFC ERGO General. During the year, the Corporation divested 7.15% of its equity holding in HDFC-SL in favour of Standard Life Assurance Company, UK for a profit of Rs. 120.94 crore. Also, they divested their entire shareholding in Intelenet Global Service Pvt Ltd for a profit of Rs. 313.25 crore. As a result, Intelenet Global Service Pvt Ltd ceased to be an associate of the Corporation. During the year 2008-09, the Corporation approved 12 new schemes under the KfW Entsicklungsbank lines in the area of low-income housing and micro-finance by way of bulk loans to partner Non-Government Organisations and micro-finance institutions. During the year 2009-10, the Corporation introduced 'HDFC Systematic Savings Plan', which is a monthly savings plan offering a variable rate of interest. They launched a key brand campaign - 'HDFC - because every family needs a home'. The objective of the campaign was to connect with HDFC' s existing customers as well as prospective customers, making the HDFC brand synonymous with a home. In April 2010, the company launched a special home loan product at a fixed rate of 8.25% per annum up to March 31, 2011, 9% for the period between April 4, 2011 and March 31, 2012 and the applicable floating rate for the balance term. This is a flexible product with dual rates. They also re-launched their product loan against property to assist customers. During the year 2010-11, HDFC Real Estate Destination (HDFC RED), an on-line real estate portal was launched with the key objective of providing a single destination to potential home buyers to search and short-list desired properties that suit their requirements. In 2011 HDFC signed MOU with Indian Army for total Salary Solutions. HDFC 5000th ATM was launched at Swami Narayan Chowk, Rajkot In 2012, the company incorporated a new wholly owned subsidiary, namely HDFC Education and Development Services Pvt Ltd. HDFC launched Solitaire' range of women's Credit Cards. HDFC Bank and Vodafone India launch m-paisa - a product for financial inclusion. The company also launches Tax payment facility through ATM and also a Bouquet of premium Travel Credit Cards. The company also launches INFINIA Credit Card In 2013 HDFC Mutual Fund Acquires the Schemes of Morgan Stanley Mutual Fund. In 2015 HDFC Life gets nod to up foreign partner stake -FDI boost for HDFC as FIPB clears Standard Life's proposal. HDFC launches its first school 'The HDFC School' in Gurgaon. HDFC announced a reduction in its Retail Prime Lending Rate (RPLR) by 20 basis points, with effect from 13 April 2015. On 8 June 2015, a Committee of the Board of Directors of the Company approved a proposal for simultaneous offering of Secured Redeemable Non-Convertible Debentures of upto Rs. 5000 crore along with warrants convertible into equity shares. On 14 August 2015, HDFC announced that it had agreed to sell 17.95 crore shares of HDFC Standard Life Insurance Company Limited (HDFC Life) in favour of its joint venture partner Standard Life (Mauritius Holdings) 2006 Limited at a price of Rs 95 per share aggregating to 9% of the issued and paid-up share capital of HDFC Life. Post the stake sale; HDFC' s holding in HDFC Life will drop to 61.65%. HDFC announced a reduction in its Retail Prime Lending Rate (RPLR) by 25 basis points, with effect from 6 October 2015. HDFC's Board of Directors at its meeting held on 26 October 2015 granted in-principle approval for establishment of a Sponsored Level 1 ADR programme in respect of up to 10% of the issued and paid-up share capital of the company. The Sponsored ADR programme envisages conversion of existing equity shares of the company into ADRs and does not entail any issue of additional shares. On 7 January 2016, HDFC announced that HDFC Capital Affordable Real Estate Fund-1 (HCARE-1), an Alternative Investment Fund (AIF) sponsored by the company, has received an aggregate commitment for an amount of Rs. 2700 crore from various investors. The targeted fund size is approximately Rs. 5000 crore and the first close will be Rs. 2700 crore. The tenure of the fund will be 12 years and it will invest in the long-term equity of mid income housing. HDFC Capital Advisors Limited, a wholly owned subsidiary of HDFC, has been appointed as an investment manager for HCARE-1. On 3 June 2016, HDFC announced that it had completed the transfer of 12.33 crore shares of its subsidiary HDFC ERGO General Insurance Company Limited (HDFC ERGO), representing 22.902% stake in HDFC ERGO, in favour of its joint venture partner ERGO International AG. HDFC further said that it made pre tax profit of Rs. 922 crore and post tax profit of Rs. 725 crore from this transaction. On 17 December 2015, HDFC had agreed to sell 22.902% stake in HDFC ERGO to ERGO International at a price of Rs. 90.973 per share for aggregate consideration of Rs. 1122 crore. On 14 July 2016, HDFC announced that it had successfully priced Rs 3000-crore overseas issue of unrated rupee denominated bonds. HDFC thus became the first Indian corporate issuer of rupee denominated bonds overseas. Rupee-denominated bonds are instruments through which Indian entities can raise funds in overseas capital markets, while the bond investors hold the currency risk. HDFC's Board of Directors at its meeting held on 27 July 2016 granted in-principle approval for the amalgamation of five wholly-owned subsidiaries viz. Grandeur Properties Private Limited, Haddock Properties Private Limited, Winchester Properties Private Limited, Pentagram Properties Private Limited and Windermere Properties Private Limited into HDFC. The area of business of these five subsidiaries is receiving of rental income on commercial properties. On 18 November 2016, HDFC announced that it has assigned its outstanding loans to the Unitech group to JM Financial Asset Reconstruction Company (JMFARC). Against total outstanding loans of Rs. 869 crore to the Unitech group, JMFARC paid HDFC Rs. 155 crore upfront and issued Security Receipts (SRs) to HDFC amounting to Rs. 705 crore to be redeemable over the period of construction of Unitech's projects. On 30 March 2017, HDFC announced that it had raised Rs. 3300 crore through the first issue of rupee denominated bonds to overseas investors under the Medium Term Note programme. On 1 June 2017, HDFC announced that its wholly-owned subsidiary HDFC Investments Limited has made an investment about $ 1.5 million by subscribing to 15% of the share capital of First Housing Finance (Tanzania), the first housing finance company to be set up in Tanzania. On 22 June 2017, HDFC executed a subscription agreement with International Finance Corporation, Washington (IFC) whereby IFC decided to subscribed to the rupee denominated bonds to be issued overseas by HDFC up to an amount of Rs. 1300 crore. On 26 July 2017, HDFC's Board of Directors granted approval for issue of Secured Redeemable Non-Convertible Debentures (NCD) aggregating to Rs 35000 crore on a private placement basis under a Shelf Disclosure Document. On 28 July 2017, HDFC announced that it had approved offering of up to 19.12 crore equity shares of Rs 10 each of HDFC Standard Life Insurance Company (HDFC Life), representing 9.57% of the paid up and issued share capital of HDFC Life, for sale in the initial public offer of HDFC Life. HDFC Life will continue to be a subsidiary of HDFC after the IPO. On 31 July 2017, HDFC Standard Life Insurance Company and Max Group entities announced that they had called off the proposed merger of their life insurance business since the parties were unable to obtain the requisite regulatory approvals to consummate the proposed merger and other transactions contemplated under the definitive agreements for the merger. On 8 August 2016, HDFC Life and Max Group Entities had announced a proposal for the merger of their life insurance business through a composite scheme of arrangement and had entered into certain definitive agreements to implement the merger. On 17 June 2016, the Board of Directors of HDFC Standard Life Insurance Company, Max Life Insurance Company and Max Financial Services approved entering into a confidentiality, exclusivity and standstill agreement to evaluate a potential combination through a merger of Max Life Insurance Company and Max Financial Services with HDFC Standard Life Insurance Company by way of a scheme of arrangement. On 14 August 2017, the Insurance Regulatory & Development Authority of India granted its final approval for the merger of HDFC ERGO General Insurance Company Limited (HDFC ERGO), a subsidiary of the company with HDFC General Insurance Company Limited (formerly L&T General Insurance Company). On 9 September 2016, HDFC ERGO announced that it had completed the acquisition of 100% shares of L&T General Insurance Company Limited for Rs 551 crore. On 3 June 2016, the Board of Directors of HDFC ERGO had approved the acquisition of 100% stake in L&T General Insurance Company Limited for an aggregate amount of Rs. 551 crore subject to receipt of requisite approvals. On 16 November 2017, HDFC announced that it had raised Rs. 1300 crore from the issue of rupee denominated bonds to International Finance Corporation, Washington under the Medium Term Note Programme. On 30 November 2017, HDFC approved offering a part of its shareholding in its subsidiary HDFC Asset Management Company Limited (HDFC AMC) through offer for sale in the initial public offer (IPO) of HDFC AMC. As on 30 September 2017, HDFC held 57.36% stake in HDFC AMC. HDFC's Board of Directors at its meeting held on 19 December 2017 approved subscription to the securities offered by HDFC Bank on preferential basis up to an amount not exceeding Rs 8500 crore. The board also approved raising funds through issue of equity shares and/or other permissible securities up to an aggregate amount not exceeding Rs. 13000 crore. On 20 December 2017, HDFC approved the sale of 6.3% stake in Computer Age Management Services Private Limited (CAMS) to Great Terrain Investment Ltd, Mauritius, an affiliate of Warburg Pincus group, for a total consideration of Rs 209.50 crore. After completion of the sale, HDFC's holding in CAMS will drop to 4.8% of the equity capital of CAMS. On 21 December 2017, HDFC approved the sale of 100% of its equity share capital in HDFC Developers Limited, which runs the HDFC Red platform, and HDFC Realty Limited, a real estate brokerage platform, to Quikr for total consideration of Rs. 101.99 crore and Rs. 254.98 crore respectively. Quikr is India's largest classifieds platform. Simultaneously, HDFC acquired an equity stake in Quikr India Private Limited. Pursuant to receipt of approval of the members through Postal Ballot in February 2018, the Corporation issued 6,43,29,882 equity shares of Rs 2 each at an issue price of Rs 1,726.05 per equity share on preferential basis in accordance with the provisions of Chapter VII of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 (SEBI ICDR Regulations). The Corporation also issued 1,03,89,041 equity shares at an issue price of Rs 1,825 per equity share to QIBs on a qualified institutions placement basis in accordance with the provisions of Chapter VIII of the SEBI ICDR Regulations. The Corporation raised an aggregate amount of Rs 13,000 crore from both the issuances. In October 2015, the Corporation had issued 3.65 crore warrants at an issue price of Rs 14 per warrant with a right exercisable by the warrant holder to exchange each warrant for one equity share of Rs 2 each of the Corporation at any time on or before October 05, 2018, at a warrant exercise price of Rs 1,475 per equity share to be paid by the warrant holder at any time of exchange of the warrants. As at March 31, 2018, 5,14,600 warrants have been exercised and exchanged into 5,14,600 equity shares of Rs 2 each of the Corporation. The equity shares so issued rank pari passu with the existing shares of the Corporation. In January 2018, the Corporation sold its entire stake in its wholly owned subsidiary companies, HDFC Developers Limited and HDFC Realty Limited, to Quikr India Private Ltd. Consequently, HDFC Realty Limited and HDFC Developers Limited ceased to be subsidiaries of the Corporation with effect from 24 January 2018. During the year 2018, the Corporation approved offering of upto 4.08% of the paid up and issued equity share capital of HDFC Asset Management Co., Ltd., (HDFC AMC), a subsidiary of the Corporation for sale in the IPO of HDFC AMC. The Board of Directors at its earlier meeting held on 27 July 2016 had approved the scheme of amalgamation of five of its wholly- owned subsidiaries, Windermere Properties Private Limited, Haddock Properties Private Limited, Grandeur Properties Private Limited, Winchester Properties Private Limited and Pentagram Properties Private Limited with itself. The applications for the proposed merger were filed with the NCLT, Mumbai bench and in March 2018, the scheme of amalgamation was approved by the NCLT. The order was filed with the Registrar of Companies, Mumbai on April 27, 2018. Accordingly, the Corporation has considered the operations of the said subsidiaries from April 1, 2016, as its own operations and accounted for the same in its books of accounts after making necessary adjustments. During the year 2018, the Corporation sold individual loans amounting to Rs. 6,453 crore, of which Rs. 1,850 crore qualified as priority sector advances for banks. The corporation's Assets Under Management (AUM) as at 31 March 2019 amounted to Rs 4,61,913 crore as compared to Rs 4,02,880 crore in the previous year. On an AUM basis, the growth in the individual loan book was 17% and the non-individual loan book was 8%. The growth in the total loan book on an AUM basis was 15%. During the FY2019, the Corporation's loan book increased from Rs 3,62,811 crore to Rs 4,06,607 crore as at 31 March 31 2019. In addition, total loans securitised and/or assigned by the Corporation and outstanding as at 31 March 2019 amounted to Rs 55,306 crore. During the fiscal 2019, the Corporation, sold individual loans amounting to Rs 25,150 crore (Previous Year: Rs 6,453 crore). Of this, Rs 23,982 crore was assigned to HDFC Bank, pursuant to the buyback option embedded in the home loan arrangement between the Corporation and HDFC Bank and Rs 1,168 crore was assigned/ securitised to another bank. Of the total loans sold during the year, Rs 5,316 crore qualifed as priority sector advances for banks. As at 31 March 2019, the investment portfolio stood at Rs 46,240 crore compared to Rs 30,717 crore in the previous year. As at 05 October 2018, 3,64,99,471 warrants had been lodged for exchange with equity shares of the Corporation, representing 99.99% of the warrants issued. Accordingly, the Corporation issued and allotted 3,64,99,471 equity shares of Rs 2 each and realised an amount of Rs 5,384 crore (of which Rs 5,308 crore was received during the year). During the year 2019, the Corporation raised an amount of Rs 48,177 crore through secured redeemable non-convertible debentures (NCDs), issued in various tranches on a private placement basis. . The NCD issues have been assigned the highest rating of CRISIL AAA/Stable' and ICRA AAA/Stable'. In July 2018, the Corporation raised an ECB of USD 750 million in the form of a syndicated loan facility. The Corporation also raised an ECB of JPY 53.2 billion (USD 486 billion equivalent) in December 2018. As on 31 March 2019, the Corporation has 18 subsidiaries and 4 associate companies under its roof. The corporation's Assets Under Management (AUM) as at 31 March 2020 amounted to Rs 5,16,773 crore as compared to Rs 4,61,913 crore in the previous year. On an AUM basis, the growth in the individual loan book was 14% and the non-individual loan book was 6%. The growth in the total loan book on an AUM basis was 12%. During the FY2019, the Corporation's loan book increased from Rs 4,06,607 crore to Rs 4,50,903 crore as at 31 March 31 2020. In addition, total loans securitised and/or assigned by the Corporation and outstanding as at 31 March 2020 amounted to Rs 65,870 crore. As at 31 March 2020, the investment portfolio stood at Rs 64,944 crore compared to Rs 46,240 crore in the previous year. In May 2019, the Corporation raised an ECB of USD 200 million in the form of a syndicated loan facility. The ECB was for a tenor of 3 years. As on March 2020, the risk weighted assets of the corporation stood at around Rs 3,93,000 crore. As on 31 March 2020, the Corporation has 19 subsidiaries and 3 associate companies under its roof. During the FY2020, the corporation has issued NCDs amounting to Rs 46,190 crore from series V-005 to V-008 and W-001 to W-010. The corporation has acquired 51.16% stake HDFC ERGO Health Insurance Ltd, subsequent to this, HDFC ERGO became the subsidiary of the corporation. During December 2020, the Corporation has sold 25,48,750 equity shares of HDFC Life Insurance Company Limited (HDFC Life) and complied with the direction from the RBI to reduce the shareholding in HDFC Life to 50% or below. As a result, a pre tax profit on sale of investments of Rs 157.10 Crore has been recognised in the quarter ended 31 December 2020 and the Corporation's equity shareholding in HDFC Life stood at 49.99%. In December 2020, the Corporation raised additional capital through a Qualified Institutions Placement of 5,68, 18, 181 equity shares at a price of Rs 1760 per share and 1,70,57,400 convertible warrants at an issue price of Rs 180 per warrant with a right to exchange one warrant with one equity share of Rs 2 each, any time before the expiry of 36 months from the date of allotment, at an exercise price of Rs 2.165 per warrant. In December 2020, the National Company Law Tribunal has sanctioned the Scheme of Amalgamation for merger of HDFC ERGO Health Insurance Limited (formerly Apollo Munich Health Insurance Company Limited) (HDFC ERGO Health) with and into HDFC ERGO General Insurance Company Limited (HDFC ERGO), subsidiaries of the Corporation and Insurance Regulatory and Development Authority of India (IRDAI) has issued final approval for the merger. Consequently, HDFC ERGO Health has been merged with HDFC ERGO from appointed date i.e. 01 March 2020. As at the end of December 2020, the Corporation's holding in HDFC ERGO, the merged entity is 50.56%. As per the directions of RBI, the Corporation is required to reduce its shareholding in the merged entity to 50% or below within 6 months post amalgamation.

Housing Development Finance Corporation Ltd Chairman Speech

CHAIRMAN'S LETTER

TO OUR SHAREHOLDERS

Hope Begins at Home

The pandemic has been one of the most scarring periods in living memory. Through this unfortunate devastation, if there is one key takeaway, it is that hope begins at home. More than ever before, a home is not just a physical space, it is a feeling. A home is sacred. It is where the strongest human bonds are created. The pandemic has taught us that the three phases of a fulfilling life learning, earning and returning can be done from home. Since inception, HDFC recognised the importance of housing and for forty-four long years, we have stayed true to our objective of enabling Indians to become homeowners. The year under review entailed two distinct halves. The first was the shock and suddenness of the national lockdown. Working remotely called for a reorientation of mindsets, systems and processes. It was also a period when we further fortified our balance sheet through our capital raise. The upside of conducting virtual roadshows was that it enabled us to reach out to a significantly larger investor base across several geographies. The second half of the financial year reaffirmed our belief that more than ever before, people are craving for homes. Demand was for affordable housing and high-end properties. It came from first-time homeowners and those moving up the property ladder into larger homes or relocating. Every loan disbursed during the pandemic reassured us that as an organisation, we were resilient, adaptable but most importantly, humane. In the darkest of days, we saw that the more innovative and efficient we got in disbursing loans, including optimising our digital platforms, the more hope and happiness we were able to bring to our customers. A confluence of factors aided the sharp recovery seen in housing in the second half of the financial year. Developers were more willing to rapidly close out deals. Interest rates were at record lows. Continued fiscal benefits on home loans and concessional stamp duty rates offered by certain state governments also encouraged home buyers. Despite the economy contracting 7.3% in FY21, the demand for home loans surpassed all expectations. Going forward, the risks of recurring waves of infections may result in temporary setbacks, but the inherent demand for homes loans remains stronger than ever. Across the globe, the battle against the virus is still raging. At this juncture, the only way to navigate this crisis is vaccinating as many people as fast as possible.

Stellar Role of Regulators

I do believe that the second wave of infections in India could have less of an impact on the economy than the first wave. As is the case globally, recovery is likely to remain patchy and uneven. Since the outbreak of the pandemic, despite the disruptions, the Indian financial system and capital markets have displayed remarkable resilience. Kudos must go to the regulators who have consistently been responsive to the needs of the economy. The regulators have had their ear to the ground, welcomed feedback and have taken measured steps in a consensual manner.

The Reserve Bank of India (RBI) has had to do the heavy-lifting. It is only befitting to acknowledge that without RBI's timely interventions, much of the financial system may well have been decimated due to the extreme risk averseness in the early days of the pandemic. Since February 2020, the support announced by RBI stood at Rs. 15.7 trillion, which is equivalent to 8% of GDP. No doubt, the task ahead remains daunting as RBI has to balance the need for growth, facilitate the government's borrowing programme, rein in inflation, continue with stimulus measures and support sectors deeply impacted by COVID-19.

The Indian capital markets appear to have had a smooth run -- largely driven by the overall sentiment of the markets. Yet, behind the scenes, the Securities and

Exchange Board of India (SEBI) has been working at a frenetic pace, with the single objective of ensuring normalcy of all market operations throughout the pandemic. SEBI responded with alacrity to not just the need to ease compliance burdens, but also provided extensive options to make it easier and faster for issuers to raise capital. As a result, Indian companies raised a record high equity capital of Rs. 1.9 trillion in FY21. Despite the challenges, SEBI continued its focus on deepening the corporate bond markets, facilitating new and innovative market instruments, focusing on investor protection and ensuring India Inc. stays at the forefront of benchmark standards on environmental, social and governance (ESG) disclosures.

The leadership of both these institutions and their workforce deserves a place of honour for the yeoman service rendered in these trying times.

More than ever before, a home is not just a physical space, it is a feeling. A home is sacred. It is where the strongest human bonds are created. The pandemic has taught us that the three phases of a fulfilling life learning, earning and returning can be done from home.

Ironing Out Regulatory Wrinkles

As FY21 marks the first transition year of housing finance companies (HFCs) being regulated by RBI, I thought I could share some ponderings on the regulatory landscape. These are reflections of my personal views.

Regulation and supervision are critical functions in any financial system and it is important that trust between a regulator and regulatee is never compromised.

Regulatory clarity helps minimise potential conflicts. Often, there are differences in interpreting regulations. For instance, non-banking financial companies, including HFCs have been following Indian Accounting Standards (IndAS), which is still not aligned with the prudential guidelines. This results in differences in opinions between the inspection teams, regulated entities and even the auditors. Banks and insurance companies have not migrated to IndAS, but it has been three years since NBFCs have. While this isn't a level playing field, it may be prudent to at least resolve these open-ended issues sooner than later. Another niggling point for HFCs is retention of customers. Lenders are susceptible to losing their existing customers to other players who often lure them through lower interest rates or increased loan amounts. As there are no prepayment penalties on floating rate loans, a lender can take over a home loan rather effortlessly. Direct selling agents (who are not tied agents) are happy to play along as it means getting paid a commission twice over on the same borrower's loan. Balance transfers only shift assets from one player to another; it does not increase home loans or home ownership at a system level. Yet, this is par for the course in a competitive business landscape.

The issue is that onboarding a home loan customer takes a great deal of effort and entails costs as well. But certainly, an endeavour to retain a performing customer which could entail a change in the rate of interest is not akin to a loan being restructured. It would be of great comfort for all HFCs to have this issue put to rest. The current environment has proved that there can be no better protection for a borrower than home loan insurance and home insurance. COVID-19 has shown how fragile and uncertain life can be and people now truly realise the importance of life insurance. In equal measure, given the risks around climate change and abrupt weather patterns, home insurance becomes a key risk mitigant. Currently, an insurance loan given to a home loan borrower is considered as a non-housing loan. Insurance is voluntary for a home loan borrower, but the reality is that the insurance loan to the home loan customer should be considered as an integral component of a housing loan and be permitted to be classified accordingly. After all, insurance protects both, the customer and the HFC. My last submission is that the regulatory framework in its current form may have the unintended consequence of penalising a HFC for maintaining excess liquidity. Larger amounts of liquidity are being held by HFCs out of abundant precaution. But surely maintenance of higher liquidity should not become the hindering factor leading HFCs to have to recalibrate their housing and non-housing portfolios so as to meet the prescribed minimum threshold limits of assets in housing finance. A minor tweak which could exclude surplus liquid balances from total assets to arrive at prescribed limits would go a long way in helping HFCs. These issues are minor teething problems in a regulatory framework that is evolving. The important part is to be able to keep having dialogues with the regulators. RBI has done well to create the Regulations Review Authority along with an advisory group for the same. This committee hopefully will have the ear of both, the regulator and the regulated entities, thereby creating the much-needed bridge.

People of the Year

History will record the year as one of the greatest tests of courage, resilience and compassion. One falls short of words to adequately express gratitude to all the frontline healthcare workers. One also has to appreciate the wonders of technology that kept a socially distanced world connected and marvel the progress of science and medicine which brought vaccines to the world in the shortest time ever. At HDFC, everything we did, achieved and was lauded for is attributable to our employees who put customers first, believed in their collective strength and displayed the tenacity to keep persevering. During this period, it became more apparent that we have some young and promising talent which we will continue to nurture and build a pipeline of leadership. As for plans on longer-term succession planning, I assure you, it continues to remain a top priority and very much a work-in-progress. I could not have been more grateful for having Keki, Renu and Rangan lead at the forefront. Keki was the undisputed choice of the board to continue at the helm for the next three years. Continuity and stability is needed at this juncture. Renu has been the ‘go-to' person for all our employees as she tirelessly rallied teams together, leading with sensitivity and compassion. Rangan has finely balanced his dual role of managing the Corporation's resources in a tough environment, whilst also overseeing the compliance function.

Lastly, I must take this opportunity to thank and bid adieu to two of our very valuable directors on our board. Nasser Munjee and J. J. Irani will be completing their term as directors in July 2021. Each with their own characteristic style have contributed immensely in guiding the board's overall strategy. My relationship with Nasser goes back 43 years as he was one of the first employees at HDFC. Nasser rose to the ranks of executive director at HDFC and later worked on setting up and heading Infrastructure Development Finance Corporation. Nasser has always been appreciated for his futuristic outlook and forthright views on governance. He has been a part of HDFC from its startup stage right up to its journey today. He truly has been an HDFC lifer.

J. J. Irani joined HDFC's board in 2008. Being a veteran from the Tata group, his value system was closely aligned to HDFC and the board benefitted from his deep industry experience. Rarely one to mince his words, he always stood his ground whilst expressing his strong opinions. He ably chaired the nomination and remuneration committee, overseeing the phased board refreshment. Change in any institution is inevitable be it at the helm or down the line. I do also want to acknowledge the contributions of employees who have superannuated from HDFC over the years. We continue to build upon their efforts and this has held us in good stead. Against the backdrop of this pandemic, what the future holds only time will tell, but my instinct is that we will find calm in the chaos sooner than we think.

   

Housing Development Finance Corporation Ltd Company History

Housing Development Finance Corporation Limited (HDFC) was incorporated on 17 October 1977 as the first specialized Mortgage Company in India. The principal business is to provide finance to individuals, corporate and developers for the purchase, construction, development and repair of houses, apartments and commercial property in India. The business is conducted through its branches in India and its overseas offices in London, Singapore and Dubai supported by a network of agents for sourcing loans as well as deposits and service associates in the Middle East region, to provide housing loans and property advisory services to non-resident Indians (NRIs) and persons of Indian origin (PIOs). HDFC is the holding company for investments in its associates and subsidiary companies. HDFC's product range includes loans for purchase and construction of a residential unit, purchase of land, home improvement loans, home extension loans, non-residential premises loans for professionals and loan against property, while its flexible repayment options include Step Up Repayment Facility (SURF) and Flexible Loan Installment Plan (FLIP). The company's subsidiaries include HDFC Developers Ltd, HDFC Investments Ltd, HDFC Holdings Ltd, HDFC Trustee Company Ltd, HDFC Realty Ltd, HDFC Property Ventures Ltd, HDFC Sales Pvt Ltd, HDFC Ventures Trustee Company Ltd, HDFC Venture Capital Ltd, HDFC Ergo General Insurance Company Ltd, HDFC Standard Life Insurance Company Ltd, GRUH Finance Ltd, HDFC Asset Management Company Ltd and HDFC Bank Ltd. Housing Development Finance Corporation Ltd was incorporated in the year 1977. The Corporation is established with the primary objective of meeting a social need that of promoting home ownership by providing long-term finance to households for their housing needs. The company was promoted with an initial share capital of Rs. 100 million. In the year 1979, the Corporation introduced HDFC Certificate of Deposit Scheme. In the year 1981, they introduced their first retail Deposit Product. They promoted a wholly owned subsidiary, HDFC Developers during the year. In the year 1982, the Corporation introduced the Line of Credit Product (LOC) for employee owned housing. In the year 1985, the Corporation introduced the Home Savings Plan based on the 'Bausparkassen' model, West Germany and the 'Step-up Repayment Facility'. In the year 1988, the Corporation in with India's leading financial institutions and commercial banks promoted Gujarat Rural Housing Finance Corporation Ltd (GRUH Finance), Housing Promotion and Finance Corporation Ltd (now SBI Home Finance), Can Fin Homes Ltd and Infrastructure Leasing and Financial Services (IL&FS), and the Credit Rating Information Services of India Ltd (CRISIL). They introduced Telescopic Loan Plan and Short Term Bridging Loan products. In the year 1989, the Corporation introduced two new products, namely Home Improvement loans & Home Extension loans. In the year 1990, the Corporation in association with the United Nations Centre for Human Settlements promoted the Coalition of Housing Finance Institutions in Asia. In the year 1991, they re-launched their retail fixed deposit products. In the year 1993, the company made a joint venture with General Electric Capital Corporation of US to promote Countrywide Consumer Financial Services Ltd for consumer finance. In the year 1994, the Corporation introduced Non-Residential Premises Loans for Individuals. In the year 1995, the Corporation made a Strategic alliance with NatWest Markets (UK) and promoted the HDFC Bank. They made a joint venture with IL&FS and Colliers Jardine Asia Pacific Ltd and promoted Colliers Jardine India Property Services Ltd. Also, they signed a MoU with Standard Life Assurance Co. of UK for life insurance. In the year 1997, the Corporation promoted the first private sector housing finance company, namely Delta Brac Housing Finance Corporation Ltd in Bangladesh. In the year 1998, the Corporation in partnership with a South-based NGO launched the Indian Association for Savings & Credit (IASC), a pioneering micro-finance institution operating in the states of Tamil Nadu and Kerala. Also, they introduced Home Equity Loans and Corporate Employees Group Finance Arrangement. In the year 1999, the Corporation invested in a new Housing Finance company in Sri Lanka. They launched the Corporation website www.hdfcindia.com (now hdfc.com). Also, they introduced the Adjustable Rate Home Loans and became the first housing finance institution to do so. In the year 2000, the Corporation inaugurated a new HDFC Standard Life office in Mumbai. They launched their first Property Fair and they issued their first Mortgage Backed Securities. The Corporation made a joint venture with Mahindra & Mahindra group and promoted propertymartindia.com, a website for providing a range of real estate services. During the year, the Corporation acquired the entire shareholding of Hometrust Housing Finance Company Ltd. Also, GRUH became a subsidiary of the Corporation. They made a joint venture with TCS and promoted Intelenet Global Services Limited for IT enabled services. Also, they entered into joint venture with Standard Life Investments for promoting the HDFC Mutual Fund. In the year 2001, the Corporation in association with State Bank of India, Dun & Bradstreet and Trans Union International Inc. (TU) promoted Credit Information Bureau (India) Ltd. They opened their 100th office at Amristar. In the year 2002, the company made a joint venture with Chubb Corporation, USA and promoted HDFC-Chubb General Insurance Company Ltd for non-life insurance. In June 2003, they singed a USD 200 million-loan agreement with International Finance Corporation (IFC), Washington. In May 2003, the Corporation signed a Technical Service Contract with Egyptian American Bank for providing technical assistance for setting up Egypt's first private sector led mortgage finance company Egyptian Housing Finance Company. In February 2005, the Corporation entered into an implementation agreement with NHB and Asian Development Bank for technical assistance for a study on the development of an agency/secondary mortgage institution to facilitate issuance of residential mortgage backed securities along similar lines as Fannie Mae in USA. During the year 2006-07, the Corporation approved 8 schemes in the area of low-income housing and micro-enterprise financing by way of financial intermediation to partner non-government organisations and micro-finance institutions. They divested their equity holding in HDFC-SL in favour of Standard Life Assurance Company, UK for a consideration of Rs. 5.66 crore. During the year 2007-08, the Corporation approved 16 new schemes under the KfW Entsicklungsbank lines in the area of low-income housing and micro-finance by way of financial intermediation to partner non-government organisations across India. They launched two major advertising campaigns, namely 'Asset Plus' and 'Empowerment'. 'Asset Plus' was launched primarily to create awareness about home equity loans. 'Empowerment' highlighted the fact that the Corporation's employees are empowered to deploy all resources available to them to provide professional services to customers. During the year, the Corporation acquired the entire 26% of the equity of HDFC Chubb General Insurance Company Ltd from Chubb Global Financial Service Corporation, USA, consequent to which the company became a wholly owned subsidiary of the Corporation. In June 2007, consequent to a preferential offer by HDFC Bank Ltd, the Corporation acquired 13,582,000 shares of HDFC Bank for a consideration of Rs. 1,390.11 crore. In October 2007, the Corporation and Standard Life Investments realigned their shareholding in HDFC Asset Management Company Ltd. Accordingly; the Corporation increased their stake to 60% in HDFC-AMC by acquiring 9.9% from Standard Life Investments. Also, the Corporation and ERGO International AG (ERGO), the primary insurance entity of Munich Re Group (Germany) entered into a joint venture, where by HDFC sold 26% equity stake of the company to ERGO. As a result of this new joint venture, the company was named HDFC ERGO General. During the year, the Corporation divested 7.15% of its equity holding in HDFC-SL in favour of Standard Life Assurance Company, UK for a profit of Rs. 120.94 crore. Also, they divested their entire shareholding in Intelenet Global Service Pvt Ltd for a profit of Rs. 313.25 crore. As a result, Intelenet Global Service Pvt Ltd ceased to be an associate of the Corporation. During the year 2008-09, the Corporation approved 12 new schemes under the KfW Entsicklungsbank lines in the area of low-income housing and micro-finance by way of bulk loans to partner Non-Government Organisations and micro-finance institutions. During the year 2009-10, the Corporation introduced 'HDFC Systematic Savings Plan', which is a monthly savings plan offering a variable rate of interest. They launched a key brand campaign - 'HDFC - because every family needs a home'. The objective of the campaign was to connect with HDFC' s existing customers as well as prospective customers, making the HDFC brand synonymous with a home. In April 2010, the company launched a special home loan product at a fixed rate of 8.25% per annum up to March 31, 2011, 9% for the period between April 4, 2011 and March 31, 2012 and the applicable floating rate for the balance term. This is a flexible product with dual rates. They also re-launched their product loan against property to assist customers. During the year 2010-11, HDFC Real Estate Destination (HDFC RED), an on-line real estate portal was launched with the key objective of providing a single destination to potential home buyers to search and short-list desired properties that suit their requirements. In 2011 HDFC signed MOU with Indian Army for total Salary Solutions. HDFC 5000th ATM was launched at Swami Narayan Chowk, Rajkot In 2012, the company incorporated a new wholly owned subsidiary, namely HDFC Education and Development Services Pvt Ltd. HDFC launched Solitaire' range of women's Credit Cards. HDFC Bank and Vodafone India launch m-paisa - a product for financial inclusion. The company also launches Tax payment facility through ATM and also a Bouquet of premium Travel Credit Cards. The company also launches INFINIA Credit Card In 2013 HDFC Mutual Fund Acquires the Schemes of Morgan Stanley Mutual Fund. In 2015 HDFC Life gets nod to up foreign partner stake -FDI boost for HDFC as FIPB clears Standard Life's proposal. HDFC launches its first school 'The HDFC School' in Gurgaon. HDFC announced a reduction in its Retail Prime Lending Rate (RPLR) by 20 basis points, with effect from 13 April 2015. On 8 June 2015, a Committee of the Board of Directors of the Company approved a proposal for simultaneous offering of Secured Redeemable Non-Convertible Debentures of upto Rs. 5000 crore along with warrants convertible into equity shares. On 14 August 2015, HDFC announced that it had agreed to sell 17.95 crore shares of HDFC Standard Life Insurance Company Limited (HDFC Life) in favour of its joint venture partner Standard Life (Mauritius Holdings) 2006 Limited at a price of Rs 95 per share aggregating to 9% of the issued and paid-up share capital of HDFC Life. Post the stake sale; HDFC' s holding in HDFC Life will drop to 61.65%. HDFC announced a reduction in its Retail Prime Lending Rate (RPLR) by 25 basis points, with effect from 6 October 2015. HDFC's Board of Directors at its meeting held on 26 October 2015 granted in-principle approval for establishment of a Sponsored Level 1 ADR programme in respect of up to 10% of the issued and paid-up share capital of the company. The Sponsored ADR programme envisages conversion of existing equity shares of the company into ADRs and does not entail any issue of additional shares. On 7 January 2016, HDFC announced that HDFC Capital Affordable Real Estate Fund-1 (HCARE-1), an Alternative Investment Fund (AIF) sponsored by the company, has received an aggregate commitment for an amount of Rs. 2700 crore from various investors. The targeted fund size is approximately Rs. 5000 crore and the first close will be Rs. 2700 crore. The tenure of the fund will be 12 years and it will invest in the long-term equity of mid income housing. HDFC Capital Advisors Limited, a wholly owned subsidiary of HDFC, has been appointed as an investment manager for HCARE-1. On 3 June 2016, HDFC announced that it had completed the transfer of 12.33 crore shares of its subsidiary HDFC ERGO General Insurance Company Limited (HDFC ERGO), representing 22.902% stake in HDFC ERGO, in favour of its joint venture partner ERGO International AG. HDFC further said that it made pre tax profit of Rs. 922 crore and post tax profit of Rs. 725 crore from this transaction. On 17 December 2015, HDFC had agreed to sell 22.902% stake in HDFC ERGO to ERGO International at a price of Rs. 90.973 per share for aggregate consideration of Rs. 1122 crore. On 14 July 2016, HDFC announced that it had successfully priced Rs 3000-crore overseas issue of unrated rupee denominated bonds. HDFC thus became the first Indian corporate issuer of rupee denominated bonds overseas. Rupee-denominated bonds are instruments through which Indian entities can raise funds in overseas capital markets, while the bond investors hold the currency risk. HDFC's Board of Directors at its meeting held on 27 July 2016 granted in-principle approval for the amalgamation of five wholly-owned subsidiaries viz. Grandeur Properties Private Limited, Haddock Properties Private Limited, Winchester Properties Private Limited, Pentagram Properties Private Limited and Windermere Properties Private Limited into HDFC. The area of business of these five subsidiaries is receiving of rental income on commercial properties. On 18 November 2016, HDFC announced that it has assigned its outstanding loans to the Unitech group to JM Financial Asset Reconstruction Company (JMFARC). Against total outstanding loans of Rs. 869 crore to the Unitech group, JMFARC paid HDFC Rs. 155 crore upfront and issued Security Receipts (SRs) to HDFC amounting to Rs. 705 crore to be redeemable over the period of construction of Unitech's projects. On 30 March 2017, HDFC announced that it had raised Rs. 3300 crore through the first issue of rupee denominated bonds to overseas investors under the Medium Term Note programme. On 1 June 2017, HDFC announced that its wholly-owned subsidiary HDFC Investments Limited has made an investment about $ 1.5 million by subscribing to 15% of the share capital of First Housing Finance (Tanzania), the first housing finance company to be set up in Tanzania. On 22 June 2017, HDFC executed a subscription agreement with International Finance Corporation, Washington (IFC) whereby IFC decided to subscribed to the rupee denominated bonds to be issued overseas by HDFC up to an amount of Rs. 1300 crore. On 26 July 2017, HDFC's Board of Directors granted approval for issue of Secured Redeemable Non-Convertible Debentures (NCD) aggregating to Rs 35000 crore on a private placement basis under a Shelf Disclosure Document. On 28 July 2017, HDFC announced that it had approved offering of up to 19.12 crore equity shares of Rs 10 each of HDFC Standard Life Insurance Company (HDFC Life), representing 9.57% of the paid up and issued share capital of HDFC Life, for sale in the initial public offer of HDFC Life. HDFC Life will continue to be a subsidiary of HDFC after the IPO. On 31 July 2017, HDFC Standard Life Insurance Company and Max Group entities announced that they had called off the proposed merger of their life insurance business since the parties were unable to obtain the requisite regulatory approvals to consummate the proposed merger and other transactions contemplated under the definitive agreements for the merger. On 8 August 2016, HDFC Life and Max Group Entities had announced a proposal for the merger of their life insurance business through a composite scheme of arrangement and had entered into certain definitive agreements to implement the merger. On 17 June 2016, the Board of Directors of HDFC Standard Life Insurance Company, Max Life Insurance Company and Max Financial Services approved entering into a confidentiality, exclusivity and standstill agreement to evaluate a potential combination through a merger of Max Life Insurance Company and Max Financial Services with HDFC Standard Life Insurance Company by way of a scheme of arrangement. On 14 August 2017, the Insurance Regulatory & Development Authority of India granted its final approval for the merger of HDFC ERGO General Insurance Company Limited (HDFC ERGO), a subsidiary of the company with HDFC General Insurance Company Limited (formerly L&T General Insurance Company). On 9 September 2016, HDFC ERGO announced that it had completed the acquisition of 100% shares of L&T General Insurance Company Limited for Rs 551 crore. On 3 June 2016, the Board of Directors of HDFC ERGO had approved the acquisition of 100% stake in L&T General Insurance Company Limited for an aggregate amount of Rs. 551 crore subject to receipt of requisite approvals. On 16 November 2017, HDFC announced that it had raised Rs. 1300 crore from the issue of rupee denominated bonds to International Finance Corporation, Washington under the Medium Term Note Programme. On 30 November 2017, HDFC approved offering a part of its shareholding in its subsidiary HDFC Asset Management Company Limited (HDFC AMC) through offer for sale in the initial public offer (IPO) of HDFC AMC. As on 30 September 2017, HDFC held 57.36% stake in HDFC AMC. HDFC's Board of Directors at its meeting held on 19 December 2017 approved subscription to the securities offered by HDFC Bank on preferential basis up to an amount not exceeding Rs 8500 crore. The board also approved raising funds through issue of equity shares and/or other permissible securities up to an aggregate amount not exceeding Rs. 13000 crore. On 20 December 2017, HDFC approved the sale of 6.3% stake in Computer Age Management Services Private Limited (CAMS) to Great Terrain Investment Ltd, Mauritius, an affiliate of Warburg Pincus group, for a total consideration of Rs 209.50 crore. After completion of the sale, HDFC's holding in CAMS will drop to 4.8% of the equity capital of CAMS. On 21 December 2017, HDFC approved the sale of 100% of its equity share capital in HDFC Developers Limited, which runs the HDFC Red platform, and HDFC Realty Limited, a real estate brokerage platform, to Quikr for total consideration of Rs. 101.99 crore and Rs. 254.98 crore respectively. Quikr is India's largest classifieds platform. Simultaneously, HDFC acquired an equity stake in Quikr India Private Limited. Pursuant to receipt of approval of the members through Postal Ballot in February 2018, the Corporation issued 6,43,29,882 equity shares of Rs 2 each at an issue price of Rs 1,726.05 per equity share on preferential basis in accordance with the provisions of Chapter VII of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 (SEBI ICDR Regulations). The Corporation also issued 1,03,89,041 equity shares at an issue price of Rs 1,825 per equity share to QIBs on a qualified institutions placement basis in accordance with the provisions of Chapter VIII of the SEBI ICDR Regulations. The Corporation raised an aggregate amount of Rs 13,000 crore from both the issuances. In October 2015, the Corporation had issued 3.65 crore warrants at an issue price of Rs 14 per warrant with a right exercisable by the warrant holder to exchange each warrant for one equity share of Rs 2 each of the Corporation at any time on or before October 05, 2018, at a warrant exercise price of Rs 1,475 per equity share to be paid by the warrant holder at any time of exchange of the warrants. As at March 31, 2018, 5,14,600 warrants have been exercised and exchanged into 5,14,600 equity shares of Rs 2 each of the Corporation. The equity shares so issued rank pari passu with the existing shares of the Corporation. In January 2018, the Corporation sold its entire stake in its wholly owned subsidiary companies, HDFC Developers Limited and HDFC Realty Limited, to Quikr India Private Ltd. Consequently, HDFC Realty Limited and HDFC Developers Limited ceased to be subsidiaries of the Corporation with effect from 24 January 2018. During the year 2018, the Corporation approved offering of upto 4.08% of the paid up and issued equity share capital of HDFC Asset Management Co., Ltd., (HDFC AMC), a subsidiary of the Corporation for sale in the IPO of HDFC AMC. The Board of Directors at its earlier meeting held on 27 July 2016 had approved the scheme of amalgamation of five of its wholly- owned subsidiaries, Windermere Properties Private Limited, Haddock Properties Private Limited, Grandeur Properties Private Limited, Winchester Properties Private Limited and Pentagram Properties Private Limited with itself. The applications for the proposed merger were filed with the NCLT, Mumbai bench and in March 2018, the scheme of amalgamation was approved by the NCLT. The order was filed with the Registrar of Companies, Mumbai on April 27, 2018. Accordingly, the Corporation has considered the operations of the said subsidiaries from April 1, 2016, as its own operations and accounted for the same in its books of accounts after making necessary adjustments. During the year 2018, the Corporation sold individual loans amounting to Rs. 6,453 crore, of which Rs. 1,850 crore qualified as priority sector advances for banks. The corporation's Assets Under Management (AUM) as at 31 March 2019 amounted to Rs 4,61,913 crore as compared to Rs 4,02,880 crore in the previous year. On an AUM basis, the growth in the individual loan book was 17% and the non-individual loan book was 8%. The growth in the total loan book on an AUM basis was 15%. During the FY2019, the Corporation's loan book increased from Rs 3,62,811 crore to Rs 4,06,607 crore as at 31 March 31 2019. In addition, total loans securitised and/or assigned by the Corporation and outstanding as at 31 March 2019 amounted to Rs 55,306 crore. During the fiscal 2019, the Corporation, sold individual loans amounting to Rs 25,150 crore (Previous Year: Rs 6,453 crore). Of this, Rs 23,982 crore was assigned to HDFC Bank, pursuant to the buyback option embedded in the home loan arrangement between the Corporation and HDFC Bank and Rs 1,168 crore was assigned/ securitised to another bank. Of the total loans sold during the year, Rs 5,316 crore qualifed as priority sector advances for banks. As at 31 March 2019, the investment portfolio stood at Rs 46,240 crore compared to Rs 30,717 crore in the previous year. As at 05 October 2018, 3,64,99,471 warrants had been lodged for exchange with equity shares of the Corporation, representing 99.99% of the warrants issued. Accordingly, the Corporation issued and allotted 3,64,99,471 equity shares of Rs 2 each and realised an amount of Rs 5,384 crore (of which Rs 5,308 crore was received during the year). During the year 2019, the Corporation raised an amount of Rs 48,177 crore through secured redeemable non-convertible debentures (NCDs), issued in various tranches on a private placement basis. . The NCD issues have been assigned the highest rating of CRISIL AAA/Stable' and ICRA AAA/Stable'. In July 2018, the Corporation raised an ECB of USD 750 million in the form of a syndicated loan facility. The Corporation also raised an ECB of JPY 53.2 billion (USD 486 billion equivalent) in December 2018. As on 31 March 2019, the Corporation has 18 subsidiaries and 4 associate companies under its roof. The corporation's Assets Under Management (AUM) as at 31 March 2020 amounted to Rs 5,16,773 crore as compared to Rs 4,61,913 crore in the previous year. On an AUM basis, the growth in the individual loan book was 14% and the non-individual loan book was 6%. The growth in the total loan book on an AUM basis was 12%. During the FY2019, the Corporation's loan book increased from Rs 4,06,607 crore to Rs 4,50,903 crore as at 31 March 31 2020. In addition, total loans securitised and/or assigned by the Corporation and outstanding as at 31 March 2020 amounted to Rs 65,870 crore. As at 31 March 2020, the investment portfolio stood at Rs 64,944 crore compared to Rs 46,240 crore in the previous year. In May 2019, the Corporation raised an ECB of USD 200 million in the form of a syndicated loan facility. The ECB was for a tenor of 3 years. As on March 2020, the risk weighted assets of the corporation stood at around Rs 3,93,000 crore. As on 31 March 2020, the Corporation has 19 subsidiaries and 3 associate companies under its roof. During the FY2020, the corporation has issued NCDs amounting to Rs 46,190 crore from series V-005 to V-008 and W-001 to W-010. The corporation has acquired 51.16% stake HDFC ERGO Health Insurance Ltd, subsequent to this, HDFC ERGO became the subsidiary of the corporation. During December 2020, the Corporation has sold 25,48,750 equity shares of HDFC Life Insurance Company Limited (HDFC Life) and complied with the direction from the RBI to reduce the shareholding in HDFC Life to 50% or below. As a result, a pre tax profit on sale of investments of Rs 157.10 Crore has been recognised in the quarter ended 31 December 2020 and the Corporation's equity shareholding in HDFC Life stood at 49.99%. In December 2020, the Corporation raised additional capital through a Qualified Institutions Placement of 5,68, 18, 181 equity shares at a price of Rs 1760 per share and 1,70,57,400 convertible warrants at an issue price of Rs 180 per warrant with a right to exchange one warrant with one equity share of Rs 2 each, any time before the expiry of 36 months from the date of allotment, at an exercise price of Rs 2.165 per warrant. In December 2020, the National Company Law Tribunal has sanctioned the Scheme of Amalgamation for merger of HDFC ERGO Health Insurance Limited (formerly Apollo Munich Health Insurance Company Limited) (HDFC ERGO Health) with and into HDFC ERGO General Insurance Company Limited (HDFC ERGO), subsidiaries of the Corporation and Insurance Regulatory and Development Authority of India (IRDAI) has issued final approval for the merger. Consequently, HDFC ERGO Health has been merged with HDFC ERGO from appointed date i.e. 01 March 2020. As at the end of December 2020, the Corporation's holding in HDFC ERGO, the merged entity is 50.56%. As per the directions of RBI, the Corporation is required to reduce its shareholding in the merged entity to 50% or below within 6 months post amalgamation.

Housing Development Finance Corporation Ltd Directors Reports

TO THE MEMBERS

Your directors are pleased to present the forty-fourth year ended March 31, annual report of your Corporation with the audited accounts for the year ended March 31, 2021.

Financial Results For the Year Ended March 31, 2021 For the Year Ended March 31, 2020
Rs. in Crore Rs. in Crore
Profit Before Fair Value Gain, Sale of 15,631.43 12,639.78
Investments, Dividend and Expected Credit Loss
Fair Value Gain consequent to merger of GRUH Finance Limited with Bandhan - 9,019.81
Bank Limited
Profit on Sale of Investments 1,397.69 3,523.75
Dividend 733.97 1,080.68
Impairment on Financial Instruments (2,948.00) (5,913.10)
(Expected Credit Loss)
Profit Before Tax 14,815.09 20,350.92
Tax Expense 2,787.79 2,581.27
Net Profit After Tax 12,027.30 17,769.65
Other Comprehensive Income 1,734.22 (6,652.31)
Total Comprehensive Income 13,761.52 11,117.34
Retained Earnings
Opening Balance 14,137.67 11,635.24
Profit for the year 12,027.30 17,769.65
Re-measurement of Defined Benefit Plan 6.30
Amount Available for Appropriations 26,171.27 29,372.90
Appropriations:
Special Reserve No. II 2,000.00 3,400.00
General Reserve 2,700.00 8,034.60
Statutory Reserve (Under Section 29C 500.00 200.00
of the National Housing Bank Act, 1987)
Final Dividend Paid 3,642.68 3,019.29
Tax on Final Dividend - 581.34
Closing Balance Carried Forward 17,328.59 14,137.67

Impact of COVID-19

The financial

2021 marked a full year since the World Health Organisation declared the outbreak of COVID-19 as a pandemic. Countries across the globe continued to face drastic economic and social disruptions along with tragic loss of lives and livelihoods. Eruptions of new waves and variants of the virus necessitated restrictions and lockdowns.

As regards the Corporation, a fortified balance sheet, continued demand for housing, leveraging technology for the convenience of customers, remote working and adhering to social distancing norms and hygiene protocols enabled full business continuity since the outbreak of the pandemic.

In April 2021, India witnessed a second wave of infections. Details of the impact of COVID-19 are elucidated in the Management Discussion and Analysis Report (MD&A).

Dividend

The board assessed the performance of the Corporation during the year under review in light of the on-going pandemic. The board recognised the need to strike a balance between being prudent and conserving capital in the Corporation, whilst also meeting expectations of shareholders. The board after assessing the capital buffers, liquidity levels and the impact of COVID-19 on the operations of the Corporation, recommended payment of dividend for the financial year ended March 31, 2021 of Rs. 23 per equity share of face value of Rs. 2 each compared to Rs. 21 per equity share in the previous year.

The dividend pay-out ratio for the year ended March 31, 2021 is 34.5%.

The dividend recommended is in accordance with the principles and criteria as set out in the Dividend Distribution Policy. The Dividend Distribution Policy is placed on the Corporation's website.

Issue of Securities on Qualified

Institutions Placement Basis

Pursuant to the approval of shareholders by way of a postal ballot on July 21, 2020, the Corporation completed Qualified Institutions its Placement (QIP) of equity shares and secured, redeemable non-convertible debentures simultaneously with warrants in August 2020. The QIP was in accordance with applicable provisions of the Companies Act, 2013, rules framed thereunder and the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018.

Equity and Warrants

Under the QIP, the Corporation raised Rs. 10,000 crore through the issue and allotment of 5,68,18,181 equity shares of face value of Rs. 2 each at an issue price of Rs. 1,760 per equity share (including a premium of Rs. 1,758 per equity share).

The Corporation also raised Rs. 307 crore through the issue and allotment of 1,70,57,400 warrants at an issue price of Rs. 180 per warrant which was paid upfront. The warrants carry a right exercisable by the warrant holder to exchange each warrant for one equity share of face value of Rs. 2 each of the Corporation at any time on or before August 10, 2023, at a warrant exercise price of Rs. 2,165 per equity share, to be paid by the warrant holder at the time of exchange of the warrants. As at March 31, 2021, no warrants had been converted into equity shares. The maximum equity dilution on account of the aforesaid QIP issue, assuming full conversion of all the warrants into equity shares at the warrant exercise price is 4.23%, based on the enhanced share capital.

Non-Convertible Debentures (NCDs)

Further, the Corporation raised Rs. 3,693 crore through the issue and allotment of 36,930 secured, redeemable NCDs at par having a tenor of 3 years, carrying a coupon rate of 5.40% payable annually. The NCDs are rated by CRISIL Ratings Limited (CRISIL) and ICRA Limited (ICRA) and are assigned the highest ratings, ‘CRISIL AAA Stable' and ‘ICRA AAA/Stable' respectively.

The equity shares, warrants and NCDs are listed on BSE Limited (BSE) and National Stock Exchange of India Limited (NSE).

MD&A, Report of the Directors on Corporate Governance and Business Responsibility Report

In accordance with the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations) and directions issued by National Housing Bank (NHB) and Reserve Bank of India (RBI), the MD&A and the Report of the Directors on Corporate Governance form part of this report.

In accordance with the Listing Regulations, the Business Responsibility Report (BRR) has been placed on the Corporation's website. The policy on Business Responsibility is placed on the Corporation's website.

Regulatory Guidelines

In August 2019, the central government conferred the powers of regulation of Housing Finance Companies (HFCs) to RBI from NHB. NHB continues to carry out the function of supervision of HFCs.

In October 2020, RBI issued the regulatory framework for HFCs in supersession of the corresponding regulations by NHB. The objective of the framework was to facilitate regulatory transition in a phased manner with least disruption.

During the year, RBI introduced certain regulatory changes for HFCs such as the principal business criteria for housing finance, definition of housing finance, minimum net owned fund requirements, guidelines on liquidity risk management framework and liquidity coverage ratio, amongst others.

Further, on February 17, 2021, RBI issued Master Direction - Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021 (RBI HFC Directions). These directions came into force with immediate effect. Key changes in the regulations are detailed in the MD&A.

The Corporation is in compliance with the applicable provisions of the RBI HFC Directions and other directions/ guidelines issued by RBI/NHB as applicable.

Lending Operations

The Corporation is a Non-Banking Financial Company - Housing Finance Company (NBFC-HFC) and is engaged in financing the purchase and construction of residential houses, real estate and certain other purposes in India. All other activities of the Corporation revolve around the main business.

Despite the challenges posed by the pandemic, lending operations of the Corporation continued seamlessly during the year.

The individual loan business began to see normalcy return from the month of September 2020 onwards, which coincided with the gradual easing of strict lockdown restrictions imposed to contain the spread of COVID-19. In the second half of the financial year, the demand for housing remained robust, with growth trends exceeding expectations. Growth in home loans was aided by low interest rates, softer or stable property prices, continued fiscalbenefits on home loans and concessional stamp duty rates offered in certain states. The demand for home loans was from both, affordable housing and higher end properties.

De-growth in individual disbursements owing to the lockdown and restrictions imposed in the first half of the financial in the second half of the year. For most parts of the first quarter of the financial lockdown and the second quarter entailed partial restrictions. Thus, individual disbursements in the first half of the financial lower compared to the corresponding period in the previous year. With restrictions gradually easing in the second half of the financial year, individual disbursements were 42% higher compared to the corresponding period in the previous year. Consequently, during the year ended March 31, 2021, individual loan disbursements reported a growth of 3% compared to the previous year. During the year, due to the prevailing uncertainties, the risk averse environment continued for non-individual loans and lending was restricted to select, high rated entities.

The Assets Under Management (AUM) as at March 31, 2021 amounted to Rs. 5,69,894 crore as compared to Rs. 5,16,773 crore in the previous year. On an AUM basis, the growth in the individual loan book was 12%. The growth in the total loan book on an AUM basis was 10%.

The Corporation's outstanding loan book stood at Rs. 4,98,298 crore as at March 31, 2021, compared to Rs. 4,50,903 crore in the previous year.

During the year, the Corporation assigned loans amounting to Rs. 18,980 crore compared to Rs. 24,127 crore in the previous year. As at March 31, 2021, the outstanding amount in respect of individual loans sold was Rs. 71,421 crore. The Corporation continues to service these loans. Further details of lending operations are provided in the MD&A.

Market Borrowings

The Corporation is in compliance with the provisions of the Housing Finance Companies Issuance of Non-Convertible Debentures on private placement basis (NHB) Directions, 2014 and RBI HFC Directions as applicable and has been regular in payment of principal and interest on the NCDs.

Details of market borrowings are provided in the MD&A and notes to accounts.

Deposits

Deposits outstanding as at March 31, 2021 amounted to Rs. 1,50,131 crore as compared to Rs. 1,32,324 crore in the previous year a growth rate of 13%.

CRISIL and ICRA have for the twenty-sixth consecutive year, reaffirmed their ‘CRISIL FAAA/Stable' and ‘ICRA MAAA/Stable' ratings respectively for HDFC's deposits. These ratings represent the highest degree of safety regarding timelyservicingoffinancial obligations. There has been no default in repayment of deposits or payment of interest during the year. All the deposits accepted by the Corporation are in compliance with the requirements of the regulations regarding deposit acceptance.

As at March 31, 2021, public deposits amounting to Rs. 890 crore had not been claimed by 43,680 depositors.

Since then, 5,629 depositors have claimed or renewed deposits of Rs. 148 crore. Depositors were intimated regarding the maturity of deposits with a request to either renew or claim their deposits. Where the deposit remains unclaimed, reminder letters are sent to depositors periodically and follow up action is initiated through the concerned agent or branch.

Deposits remaining unclaimed for a period of seven years from the date they became due for payment have to be transferred to the Investor Education and Protection Fund (IEPF) established by the central government. The concerned depositor can claim the deposit from the IEPF.

During the year, an amount of Rs. 4 crore was transferred to the IEPF.

Capital Adequacy Ratio

As at March 31, 2021, the Corporation's capital adequacy ratio (CAR) stood at 22.2%, of which Tier I capital was 21.5% and Tier II capital was 0.7%. As per regulatory norms, the minimum stipulated capital adequacy ratio to be achieved on or before March 31, 2021 was 14% and the minimum

Tier I capital was 10%. The minimum capital adequacy ratio for HFCs would increase to 15% on or before March 31, 2022.

Corporate Social Responsibility (CSR)

During the year, the Corporation's CSR activities focused primarily on COVID-19 relief, education, healthcare, livelihoods and supporting persons with disabilities. Other interventions taken up during the year included support for senior citizen homes, support for Olympic athletes including para-athletes and environmental programmes supporting solid waste management, green energy and ecological restoration for urban and rural communities. The Corporation prioritised key sub-thematic areas within each of these sectors to ensure that the CSR interventions were targeted most optimally. The Corporation contributed directly and through the H T Parekh Foundation to the identified social sectors. Further details on the prescribed CSR spend under Section 135 of the Companies Act, 2013 and the amount spent during the year under review are provided in the Annual Report on CSR activities annexed to this report.

Subsidiary and Associate Companies

In accordance with the provisions of Section 136 of the Companies Act, 2013, the annual report of the Corporation, the annual financial statements and the related documents of the Corporation's subsidiary companies are placed on the website of the Corporation.

Shareholders may download the annual financial statements and detailed information on the subsidiary companies from the Corporation's website or may write to the Corporation for the same. Further, the documents shall also be available for inspection by the shareholders at the registered office of the Corporation.

The merger of the Corporation's subsidiaries, HDFC ERGO Health Insurance Limited (formerly Apollo Munich Health Insurance Company Limited) with and into HDFC ERGO General Insurance Company Limited (HDFC ERGO) was approved by the National Company Law Tribunal (NCLT) on September 29, 2020. The final approval for the merger by the Insurance Regulatory and Development Authority of India (IRDAI) was received on November 11, 2020.

The appointed date of the merger was March 1, 2020 and the effective date was November 13, 2020.

Consequently, HDFC ERGO Health Insurance Limited was dissolved with effect from the said date.

RBI had directed the Corporation to reduce its shareholding in its insurance companies to below 50%.

Shareholders' approval for the same was obtained at the Annual General Meeting (AGM) of the Corporation held on July 30, 2020.

During the year, the Corporation sold 1.43% of its shareholding in HDFC Life Insurance Company Limited (HDFC Life). As at March 31, 2021, the Corporation's shareholding in HDFC Life stood at 49.97%.

Accordingly, HDFC Life and its subsidiaries , HDFC Pension Management Company Limited and HDFC International Life & Re Company Limited ceased to be subsidiaries of the Corporation, under the Companies Act, 2013. However, for the purpose of consolidated financial statements, the above-mentioned companies will continue to be accounted as subsidiary companies. As per Indian Accounting Standards, the Corporation consolidates a subsidiary when it controls the said company.

As per RBI's directive, the Corporation has to reduce its shareholding in HDFC ERGO to below 50% by May 12, 2021.

HDFC Credila Financial Services Limited, a wholly owned subsidiary of the Corporation was converted into a public limited company (from a private limited company) with effect from . October 8, 2020.

The Corporation has not made any loans or advances in the nature of loans to any of its subsidiary or associate company or companies in which its directors are deemed to be interested, other than in the ordinary course of business.

The Corporation is in compliance with . the provisions of Foreign Exchange Management Act, 1999 with respect to downstream investments made by it/by its subsidiaries during the year. Further, as required by the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, the Corporation has obtained from statutory auditors on the same.

A review of the key subsidiary and associate companies of the Corporation form part of the MD&A which forms part of this report. Further, a statement containing salient features of financial statements of the subsidiaries and associates of the Corporation in the prescribed Form

No. AOC-1 is provided elsewhere in this annual report.

Particulars of Employees

HDFC had 3,226 employees as of March 31, 2021. During the year, 15 employees employed throughout the year were in receipt of remuneration of Rs. 1.02 crore or more per annum and 1 employee employed for part of the year was in receipt of remuneration of Rs. 8.5 lac or more per month.

In accordance with the provisions of Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the names and particulars of the top ten employees in terms of remuneration drawn and of the aforesaid employees are set out in the annex to the Directors'

Report. In terms of the provisions of Section 136(1) of the Companies Act, 2013 read with the rule, the Directors' Report is being sent to all shareholders of the Corporation excluding the annex. Any shareholder interested in obtaining a copy of the annex may write to the Corporation. Further disclosures on managerial remuneration are annexed to this report.

Prevention, Prohibition and Redressal of Sexual Harassment of Women at the Workplace

The Corporation has a policy on prevention, prohibition and redressal of sexual harassment of women at the workplace and has an Internal Complaints Committee (ICC) in compliance with the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. The Corporation's policy on the same is placed on the Corporation's website.

The ICC comprises majority of women members. Members of the Corporation's ICC are responsible for conducting inquiries pertaining to such complaints. The Corporation on a regular basis sensitises its employees, including outsourced employees on the prevention of sexual harassment at the workplace through workshops, group meetings, online training modules and awareness programmes which are held on a regular basis. The Corporation also conducted a special training programme for the members of the ICC. During the year, two complaints were received by the ICC. One case was reviewed and disposed of while the other case which was received in the month of March 2021 was being investigated by the ICC as at March 31, 2021.

Particulars of Loans, Guarantees or Investments

Since the Corporation is an NBFC-HFC, the disclosures regarding particulars of the loans given, guarantees given and securities provided is exempt under the provisions of Section 186 (11) of the Companies Act, 2013.

As regards investments made by the Corporation, the details of the same are provided in notes to the financial statements of the Corporation for the year ended March 31, 2021 (note 10).

Particulars of Contracts or Arrangements with Related Parties

The particulars of contracts or arrangements with related parties as prescribed in Form No. AOC 2 is annexed to this report. Details of related party transactions are given in the notes to the financial statements.

The policy on Related Par ty Transactions of the Corporation ensures proper approval and reporting of the concerned transactions between the Corporation and its related parties. The policy on Related Par ty Transactions is published elsewhere in the annual report and is also placed on the Corporation's website.

Particulars Regarding Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo

During the year ended March 31, 2021, earnings in foreign currency stood at Rs. 2 crore and expenditure in foreign currency stood at Rs. 782 crore (largely pertaining to interest on foreign currency borrowings).

The Corporation is in the business of housing finance and hence its operations are not energy intensive.

The Corporation is cognisant of the importance of imbibing measures towards optimum energy utilisation and conservation.

Employees Stock Option Scheme (ESOS)

The stock options granted to the employees operate under various schemes. There has been no variation in the terms of the options granted under any of the schemes and all the schemes are in compliance with SEBI (Share Based Employee Benefits)Regulations, 2014 (SBEB Regulations).

On September 4, 2020, the Corporation approved the grant of 3,83,96,531 stock options and on February 2, 2021 approved the grant of 25,000 stock options -- each stock option representing one equity share of Rs. 2 each to eligible employees and directors of the Corporation under Employees Stock Option Scheme - 2020 (ESOS-20). The exercise prices were determined based on the market price defined in the SBEB Regulations i.e. the latest available closing price of the equity share on the NSE, prior to the dates of the respective meetings of the Nomination and Remuneration Committee at which the options were granted. Subject to fulfilling the conditions specified in ESOS-20, 50% of the options granted shall vest on the completion of one year from the date of grant or upon completion of three years of service with the Corporation, whichever is later. The remaining 50% shall vest on completion of one year thereafter.

The options are exercisable over a period of five years from the date of their respective vesting. None of the options granted have vested during the year and consequently, no options have been exercised under ESOS-20.

The stock options granted to employees pursuant to the Corporation's stock option schemes are measured at fair value of the options at the grant date using Black-Scholes model. The fair value of the options determined at grant date is recognised as employee compensation cost over the vesting period on straight line basis over the period of the option, based on the number of grants expected to vest, with a corresponding increase in equity.

The disclosures as required under SBEB Regulations have been placed on the website of the Corporation.

Unclaimed Dividend and Shares

As at March 31, 2021, dividend amounting to Rs. 24.22 crore had not been claimed by shareholders of the Corporation. The Corporation takes various initiatives to reduce the quantum of unclaimed dividend and has been periodically intimating the concerned shareholders, requesting them to encash their dividend before it becomes due for transfer to the

IEPF.

Unclaimed dividend amounting to Rs. 2.30 crore for FY13 was transferred to the IEPF on September 1, 2020.

Further, in compliance with the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 as amended, the Corporation transferred 65,928 equity shares of Rs. 2 each (corresponding to the dividend for FY13 and remaining unclaimed for a continuous period of 7 years) in favour of the IEPF. However, the concerned shareholders may claim the unclaimed dividend and unclaimed shares from IEPF, the procedure for which is detailed on the Corporation's website.

The unclaimed dividend in respect of FY14 must be claimed by shareholders on or before August 20, 2021, failing which the Corporation would be required to transfer the unclaimed dividend and the corresponding shares to the IEPF within a period of 30 days from the said date.

Directors

In accordance with the provisions of the Companies Act, 2013 and the Articles of Association of the Corporation, Mr. Keki M. Mistry is liable to retire by rotation at the ensuing AGM. He is eligible for re-appointment. The board at its meeting held on May 7, 2021, approved the re-appointment of Mr. Keki M. Mistry as the Managing Director (designated as the Vice Chairman & Chief Executive Officer) of the Corporation for a period of 3 years with effect from May 7, 2021. The re-appointment is subject to the approval of the members of the Corporation at the ensuing AGM. Mr. Keki M. Mistry continues to be liable to retire by rotation.

The necessary resolution for the re-appointment of Mr. Keki M. Mistry and his brief profile has been included in the notice convening the ensuing AGM. All the directors of the Corporation have confirmed that they satisfy the fit and proper criteria as prescribed under the applicable regulations and that they are not disqualified from being appointed as directors in terms of Section 164(2) of the Companies Act, 2013. The details on the number of board/ committee meetings held are provided in the Report of the Directors on Corporate Governance, which forms part of this report.

Auditors

At the 40th AGM of the Corporation held on July 26, 2017, the members had appointed Messrs B S R & Co. LLP, Chartered Accountants, (firm registration number 101248W/W-100022) as the statutory auditors for a term of 5 consecutive years and to hold office until the conclusion of the 45th AGM. The details of remuneration paid by the Corporation to Messrs B S R & Co. LLP, chartered accountants are provided in note 34.1 of the financial fees paid to the statutory auditors by the Corporation does not exceed the audit/ limited review fees. During the year, Messrs B S R & Co. LLP, chartered accountants and all entities in the network firm of which the statutory auditor is a part received a total remuneration of Rs. 9.02 crore from the Corporation and its certain subsidiaries. The remuneration pertains to fees for audit, internal financial control reporting, limited reviews, tax audits and taxation services, certifications and other matters.

In accordance with applicable laws, during the year, the audit partner was rotated. The auditors' report annexed to the financial statement for the year under review does not contain any qualifications As per the guidelines issued by RBI on April 27, 2021 for the appointment of statutory auditors, NBFC-HFCs with an asset size of `15,000 crore and above are required to have a minimum of two audit firms. The guidelines have to be adopted from the second half of FY22 onwards.

The guidelines also require rotation of audit firm Since B S R & Co. LLP, chartered accountants has completed the specified time period as the statutory auditors, the Corporation would have to appoint two new audit firms for conducting the audit for FY22. The Corporation is in the process of identifying suitable audit firms and the requisite approval of the members will be sought at a future date.

Secretarial Audit

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, Messrs Parikh & Associates, practicing company secretaries undertook the secretarial audit of the Corporation for the FY21. The Secretarial Audit Report is annexed to this report and does not contain any qualifications. The Secretarial Compliance Report as prescribed by SEBI is provided elsewhere in the annual report. The Board of Directors of the Corporation at its meeting held on May 7, 2021, appointed Messrs BNP & Associates, practicing company secretaries as the secretarial auditors to undertake the secretarial audit of the Corporation for FY22.

Orders Passed by Regulators

During the year, there were no significant by the regulators or courts or tribunals against the Corporation. In September 2020, NHB imposed a monetary penalty of Rs. 1,50,000 on the Corporation for non-compliance with two provisions of the Housing Finance Companies (NHB) Directions, 2010 pertaining to FY 2018-19. The Corporation paid the penalty on Octoberaperiod of3years. 8, 2020. The Corporation maintains that this is not significant or material in nature.

Directors' Responsibility Statement

In accordance with the provisions of Section 134(3)(c) of the Companies Act, 2013 and based on the information provided by the management, your directors state that: a) In the preparation of annual accounts, the applicable accounting standards have been followed;

b) Accounting policies selected have been applied consistently. Reasonable and prudent judgements and estimates have been made so as to give a true and fair view of the state of affairs of the Corporation as at March 31, 2021 and of the profit of the Corporation for the year ended on that date;

c) Proper and been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Corporation and for preventing and detecting frauds and other irregularities;

d) The annual accounts of or material orders passed the Corporation have been prepared on a going concern basis;

e) Internal financial controls have been laid down to be followed by the Corporation and such internal financial controls are adequate and operating effectively; and

f) Systems to ensure compliance with the provisions of all applicable laws are in place and were adequate and operating effectively.

Internal Financial Control

The Corporation has put in place adequate policies and procedures to ensure that the system of internal financial controls is commensurate with the size and nature of the Corporation's business. These systems provide a reasonable assurance in respect of providing financial and operational information, complying with applicable statutes, safeguarding of assets of the Corporation, prevention and detection of frauds, accuracy and completeness of accounting records and ensuring compliance with corporate policies.

Annual Return

The Form No. MGT-7 for FY21 is uploaded on the Corporation's website.

Material changes and commitment, if any, affecting the financial of the Corporation from the financial year end till the date of this report

There are no material changes and commitments affecting the financial position of the Corporation which have occurred after March 31, 2021 till the date of this report.

Acknowledgements

The directors place on record their gratitude for the support of various regulatory authorities including NHB, RBI, SEBI, IRDAI, Pension Fund Regulatory and Development Authority, Ministry of Housing and Urban Affairs, Ministry of Corporate Affairs, Registrar of Companies, Financial Intelligence Unit (India), the stock exchanges, National Securities Depository Limited and Central Depository Services (India) Limited.

The Corporation acknowledges the role of all its key stakeholders - shareholders, borrowers, channel position partners, depositors, deposit agents and lenders for their continued support to the Corporation.

Your directors place on record their appreciation for the hard work and dedication of all the employees and support services of the Corporation and the co-operation of all its subsidiary and associate companies, especially during the difficult times of the pandemic. Last and most importantly, your directors remain extremely grateful to the medical fraternity, frontline workers and other first-hand responders who continue to work tirelessly in an endeavour to overcome the pandemic.

On behalf of the Board of Directors
MUMBAI DEEPAK S. PAREKH
May 7, 2021 Chairman

   

Housing Development Finance Corporation Ltd Company Background

Deepak ParekhRenu S Karnad
Incorporation Year1977
Registered OfficeRamon House H T Parekh Marg,169 Backbay Reclamation
Mumbai,Maharashtra-400020
Telephone91-22-6716 6000,Managing Director
Fax91-22-2281 1205
Company SecretaryAjay Agarwal
AuditorBSR & Co LLP/S R Batliboi & Co LLP
Face Value2
Market Lot1
ListingBSE,MSEI ,NSE,
RegistrarHDFC Ltd
5th Flr Ramon House ,Churchgate ,169 Backbay Reclam ,Mumbai-400020

Housing Development Finance Corporation Ltd Company Management

Director NameDirector DesignationYear
Deepak Parekh Chairman 2021
Nasser Munjee Independent Director 2021
J J Irani Independent Director 2021
V Srinivasa Rangan Whole-time Director 2021
Renu S Karnad Managing Director 2021
Keki M Mistry Vice Chairman & CEO 2021
Ajay Agarwal Company Secretary 2021
Upendra Kumar Sinha Independent Director 2021
Jalaj Ashwin Dani Independent Director 2021
Bhaskar Ghosh Independent Director 2021
Ireena Vittal Independent Director 2021

Housing Development Finance Corporation Ltd Listing Information

Listing Information
BSE_SENSEX
NIFTY
BSE_500
BSE_100
BSE_200
BSEDOLLEX
CNX500
CNX100
CNXSERVICE
CNX200
CNXFINANCE
BSEGREENEX
BSECARBONE
NFT100EQWT
BSEALLCAP
BSELARGECA
BSEFINANCE
SENSEX50
LMI250
BSEDSI
NFT50EQWT
BSEDFINRVG
BSE100LTMC

Housing Development Finance Corporation Ltd Finished Product

Product NameUnit Installed
Capacity
Production
Quantity
Sales
Quantity
Sales
Value
Interest Rs.00042771.96
Profit on Sale of Investments Rs.0001395.49
Income on Derecognised Loans Rs.0001190.25
Net Gain on Fair Value ChangesRs.000956.48
Surplus from Deployment of CasNA 000812.78
Dividends Rs.000733.97
Fees and Other Charges Rs.000211.65
Rental Income Rs.00077.16
Securitisation of loans Rs.0000
Brokerage Rs.0000
Income from Investment OperatiRs.0000
Income from Leasing Rs.0000
Other Operating Income Rs.0000

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