HDFC Full Form: Housing Development Finance Corporation

What is HDFC Full Form?

The HDFC Full Form is “The Housing Development Finance Corporation” is an established Indian financial institution for housing. It is a reputable housing finance corporation in India that primarily offers housing loans to low and middle-class individuals to purchase homes and builders for residential projects. Its main goals are to increase home ownership in the nation and to improve the residential housing stock through the systematic provision of housing finance.

Overview of HDFC Bank: History And Growth

HDFC Bank is well-known in India’s banking industry. HDFC full form “Housing Development Finance Corporation Bank”, a Company’s initiative program, was one of the steps taken to provide the people of this country with access to fundamental banking services. It has since developed into a reputable organization. The largest private sector bank in terms of assets is HDFC Bank. It is currently the seventh-largest bank worldwide when ranked by market capitalization.

History Of HDFC Bank

The first corporation, the Housing Finance Corporation, was established in Mumbai in 1977 in an attempt to create India’s only private development finance institution. It was established to raise money for initiatives aimed at economic development. The Housing Development Finance Corporation Limited sponsored the establishment of HDFC in 1994. To address India’s housing shortage, HDFC was established in 1977. The Housing Finance Corporation, which had been incorporated as HDFC Bank Limited, received preliminary approval from the RBI in 1994 to conduct banking operations. Mumbai houses the bank’s headquarters.  

Vision, Mission, And Values Of HDFC Full Form

• Being a top-tier Indian bank is the goal of HDFC Bank. 
• The first goal is to be the go-to supplier of banking services for our target retail and wholesale customer regiments.
• The second goal is to achieve healthy profitability growth that is consistent with the bank’s risk tolerance.
• The bank upholds the highest standards of morality, competence, corporate responsibility, and legality.
• The five core values of customer focus, operational excellence, people,  product leadership, and sustainability form the foundation of HDFC Bank’s business philosophy.

Founder of HDFC

More than just the founder of HDFC, Hasmukh Thakordas Parekh was a multifaceted leader who left a lasting impact on India’s financial landscape. An economist by training, Parekh was also a philanthropist and entrepreneur driven by a desire to empower ordinary Indians.

His vision for HDFC, established in 1977, revolutionised access to homeownership for countless individuals and families. But Parekh’s influence extended beyond HDFC. He played a pivotal role in the development of ICICI, now ICICI Bank, further solidifying his legacy in shaping a more robust financial system for India.

Parekh’s dedication was recognized with the prestigious Padma Bhushan award and an honorary fellowship from the London School of Economics. His story is a testament to the power of vision, innovation, and a commitment to social good.

Evolution of HDFC Bank: Major Milestones

• 1994: In August 1994, HDFC Full Form “Housing Development Finance Corporation Bank” incorporated as HDFC Bank Limited after receiving in-principle approval from the RBI to establish a private sector bank.
• 1995: Launch of HDFC Bank’s first Rs. 500 million initial public offering. The shares of the Bank were quoted at a 300 per cent premium two months after this IPO issue.
• 1997: First dividend announced. 
• 1997-98: New logo unveiled in 1997–1998. 
• 1999: Launched India’s first international debit card in India in partnership with Visa International. HDFC Bank started its digital transformation by introducing online real-time Net-Banking.
• 2000: In the year 2000, HDFC Bank launched the country’s first SMS-based mobile banking service.  
• 2001: International listing Listed on the New York Stock Exchange (NYSE) Became the first private bank permitted to collect income tax. 
• 2002: Depository and custodial services received ISO 9001 certification.  
• 2003–2004: 10 lakh users were reached by the first bank in India to offer credit cards in more than 100 cities.
• 2006: For women on International Women’s Day, two new cards were released in 2006  
• 2008: The first foreign commercial branch opened in Bahrain in 2008; one of the biggest mergers in the Indian banking sector merged with Centurion Bank of Punjab.  
• 2010: 40 per cent faster ATMs were introduced, the first of its kind in Asia.
• 2011: Expanding customer base to become market leader in credit cards, auto loans, and personal loans.  
• 2013: The Bank’s Sustainable Livelihood Initiative (SLI) of the Bank affects 20 lakh households, reaching a significant milestone.  

HDFC Bank Product

The Bank offers a broad range of banking services of HDFC Bank, including transactional or branch banking for retail customers and commercial and investment banking for wholesale customers. The bank has important business sectors:

Retail Banking

The retail banking division of HDFC Bank focuses on serving individuals, salaried professionals, micro and small businesses, self-help groups (SHGs), and non-resident individuals (NRIs). Following are some HDFC bank products from the retail banking division:

• Auto Loans And Personal Loans
• Credit And Debit Cards
• Home Loans
• Gold Loans
• Mortgages
• Commercial Vehicle Finance
• Savings And Current Account
• Fixed And Recurring Deposits
• Corporate Salary Accounts
• Construction Equipment Finance
• Agri And Tractor Loans
• Kisan Gold Card
• Healthcare Finance
• Offshore Loans To NRIs
• Small Ticket Working Capital Loans
• Business Loans

Corporate Banking

Large corporations, PSUs, governments, and multinational corporations make up the business target market. The Bank offers a variety of commercial and transactional banking services to clients. Following are some HDFC Bank Products from the Corporate Banking division:

• Working Capital Facilities
• Term Lending
• Project Finance
• Debt Capital Markets
• Mergers and Acquisitions
• Trade Credit
• Supply Chain Financing
• Forex and Derivatives
• Cash Management Services
• Wholesale Deposits
• Letters of Credit and Guarantees
• Custodial Services
• Correspondent Banking
• Construction Finance

Services Of HDFC Bank

Online And Mobile Banking

You can conduct banking operations wherever you are and at any time with this most basic digital service of HDFC Bank. Additionally, every service of HDFC Bank you can access online is free.

Digital Wallet

You likely prefer using your credit or debit cards to pay for purchases, whether they are offline or online. Digital wallets go one step further in terms of ease and convenience. Services of HDFC Bank offers virtual Prepaid Cards or Digital Wallet, which allows access to your bank account.

Wealth Management Services Of HDFC

To expand its customer base, HDFC Bank has added new products to its wealth management program. All of the bank’s customers will have access to the non-interactive financial planner product, which was recently introduced, for an annual fee starting at Rs. 10,000.

Customer-Centric Approach of HDFC Bank

The HDFC bank is renowned for its customer-centric approach, focusing on client needs and delivering desired solutions. It is one of the five core values of HDFC Bank. Driven by its core value of putting the needs of the customer first, the bank has consistently strived to enhance customer experience and has adopted a holistic approach for the same across multiple channels, including branch banking, phone banking, net banking, mobile banking, the EVA chatbot, and the bank’s social media accounts.

The relationship-based banking programs have also undergone modification by the bank. In addition to the branch-based relationship managers, it also offers a virtual relationship manager (VRM) program to address a variety of financial needs individually.

HDFC Bank’s Commitment to Financial Inclusion

HDFC Bank works to serve the unbanked and underbanked population in rural, semi-urban, and urban India because financial inclusion is urgently required. By holding workshops to empower society’s marginalized groups, HDFC Bank has seen it as its duty to raise financial literacy. The road to true financial inclusion begins with financial literacy. Financial inclusion may become a commercially successful endeavour. The Bank’s mobile financial literacy initiative is called Digidhan or Dhanchayat.

Through its CSR brand, Parivartan, which means change, HDFC hopes to revolutionize community living conditions and means of subsistence. To aid in implementing various sustainable development programs, HDFC Bank collaborates with various N, partners, and as staff volunteers.

HDFC Bank’s Focus on Risk Management and Compliance

The strong risk management framework and independence of the risk management function at HDFC Bank distinguish them as a trustworthy banker. It enables the carrying out of strategic priorities without taking unwarranted financial and non-financial risks. In these highly disruptive and uncertain times, HDFC Bank could survive and even expand thanks to its risk policies and how the government and technology implemented them.

HDFC Bank’s Recognition and Awards

Since its founding in 1995, HDFC Bank has garnered numerous honours, awards, and recognition for its achievements. Euromoney Awards for Excellence 2020 has named HDFC Bank as India’s Best Bank. India’s Best Domestic Bank, according to Asiamoney, is HDFC Bank.

In Mumbai, HDFC Bank has received three honors from the Asiamoney Best Bank Awards 2022 on August 26 2022. The magazine claims that HDFC Bank is the largest lender to the private sector in India by assets. It has the size, infrastructure, expertise, and vision needed to serve over 70 million customers.

Future Outlook for HDFC Bank: Ahead Of Merger

As it prepares to merge with HDFC in the coming 4 to 5 weeks, HDFC Bank is putting itself in a position to take advantage of fresh growth opportunities, particularly in mortgage assets, better cross-selling, and accelerated growth in liabilities. Following the merger, HDFC Bank has emphasized its strategic plans to enhance its digital capabilities and ensure sustainable growth. The bank wants to keep its return on assets (ROA) at the current level while launching fresh initiatives to improve customer satisfaction.

At a recent analyst meeting, HDFC Bank emphasized how technology has changed from being an enabler to a driver of outcomes. As part of its efforts to adjust to the digital era, HDFC Bank said it aims to modernize its current infrastructure, build competencies, and establish Centers of Excellence (CoE).

Conclusion

The remarkable rise of HDFC Bank from a small private bank to a major financial force has altered Indian banking. The private banking industry in the nation has been made possible by HDFC Bank’s forward-thinking leadership, ground-breaking strategies, and unwavering pursuit of excellence. As a company, the services of HDFC Bank are committed to redefining banking standards, fostering customer trust, and establishing new performance benchmarks, all of which are helping to advance India’s future economic success. Throughout its history, HDFC Bank has demonstrated impeccable business judgment numerous times and set standards for others to imitate. The bank’s unwavering dedication to innovation, effectiveness, and customer-centric services has cemented its status as an institution in and of itself rather than just a business.

Along with HDFC Full Form, learn about some other full forms:

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