HDFC Group- All You Need To Know

Listen to our Podcast: Grow your wealth and keep it secure.

0:00 / 0:00

Starting from humble beginnings, today HDFC Group is a name that countless Indians trust and rely on. When many people in the country struggled to find support for their housing needs, HDFC stepped in, making a real difference. Because of its commitment and service, it has not only built homes but also built dreams for millions. 

In this blog, we’ll take a journey through HDFC Group’s rich history, its strong pillars in the form of subsidiaries, its standout moments, and the services it offers.

About HDFC Group

FeatureDetails
FounderHasmukhbhai Parekh
Industry TypeFinancial Services
Founded1977 (HDFC Limited)
HeadquartersMumbai, Maharashtra, India
Key PeopleDeepak Parekh (Chairman, HDFC Limited)
Countries PresenceIndia, with international representatives in 4 countries

Overview of HDFC Group

The HDFC Group stands as a symbol of trust and reliability in India’s financial world. Beginning its story in the housing finance sector, HDFC was born out of a need to provide more options for home loans in India. But as time passed, HDFC didn’t limit itself to just that. It branched out into different financial areas, like banking, insurance, and even asset management, to name a few. Now, it’s a one-stop shop for a range of financial needs for countless people across the country.

Over the years, HDFC has been quick to adapt to change. By seeing how the world of finance shifts and grows, and understanding what its customers want, HDFC has successfully used technology to make their services better and more reachable. They aim to provide for everyone, whether it’s a person living in a metro city or a small village, or a huge company or an individual.

A big reason for HDFC Group’s success is how it operates. It believes in growing but in a responsible way. This means doing business the right way and looking after its customers’ needs. Whether it’s HDFC Bank, HDFC Life Insurance, or HDFC Asset Management, each part of the group aims high. They all want to set a standard in their field and serve their customers the best way possible. But the HDFC story isn’t just about its achievements. It’s about the bonds it has built with its customers, the hopes it has helped come true, and the big role it plays in India’s financial world. 

HDFC Group History

1977: The Indian financial sector witnessed the establishment of the Housing Development Finance Corporation Limited (HDFC Ltd.). Set up to address the housing finance requirements of the Indian population, it was a pioneering step by a private entity.

1978: HDFC Ltd. set up its inaugural office in Mumbai. In the same year, it approved its maiden housing loan, leading the way for many more in the years to come.

1981: HDFC Ltd. recognised the growing need for housing finance across India. This led to the inauguration of its first branch outside Mumbai in Delhi, marking its venture towards a national presence.

1982: HDFC Ltd. rolled out its Fixed Deposits for the everyday Indian investor, providing them with a fresh savings option.

1985: HDFC Ltd. rolled out adjustable-rate loans. This initiative was designed to meet the varying financial capabilities and preferences of its customers.

1987: HDFC Ltd. partnered with esteemed international entities like the International Finance Corporation (Washington) and the Aga Khan Fund for Economic Development, further enhancing its international credibility.

1990: Entering a new decade, HDFC Ltd. marked a significant feat by launching its first international commercial paper in the Japanese financial market.

1993: HDFC Ltd. made its mark in the Indian stock market by getting listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

1994: HDFC Bank came into being, starting a fresh chapter in private banking in India. 

1995: HDFC began its journey as a Scheduled Commercial Bank, highlighting its commitment to deliver unparalleled banking solutions to its customers.

2000: Two landmark events unfolded this year:

  • HDFC Bank was granted permission by the Reserve Bank of India (RBI) to set up its private foreign exchange, a first for a private-sector bank.
  • The merger with Times Bank enhanced its service offerings and substantially broadened its operational horizon.

2008: Seeking further expansion, HDFC acquired the Centurion Bank of Punjab. This acquisition notably increased its branch network, thereby amplifying its customer reach.

2010: HDFC, by now, had risen to be India’s leading credit card issuer, reflecting its capability to adapt and serve modern banking requirements.

2011: HDFC Life launched HDFC Pension to oversee pension fund operations under India’s National Pension System.

2015: Highlighting its expansive network, HDFC celebrated the launch of its 4,000th branch, supplemented by a massive network of 12,000 ATMs, ensuring nationwide accessibility.

2016: HDFC Life initiated its first subsidiary in the UAE. By this time, the company’s annual premium had surpassed the ₹16,000 crore milestone.

2017: HDFC Life took a significant step by getting its shares listed on BSE & NSE, gaining prominence in the Indian capital market.

2019: HDFC Bank’s market capitalisation reached an impressive ₹6 trillion, highlighting its financial stability and investor confidence.

2021: HDFC introduced ‘HDFC Bank SmartUp’, a platform designed for startups and emerging entrepreneurs, to meet their specific banking needs. HDFC Life’s Embedded Value ascended past the ₹25,000 crore mark.

2022: In an industry-first move, HDFC Life achieved the integration of Exide Life into its business operations through a merger.

2023: A significant restructuring took place with the merger of HDFC Limited with HDFC Bank. This not only reshaped its organisational blueprint but also positioned it among the top banks globally, based on market capitalisation.

Major Subsidiaries of HDFC Group

S. No.Name SectorMarket Cap (in Crores)
1HDFC Bank LtdBanking₹ 11,48,605
2HDFC Life Insurance Company LtdInsurance₹ 1,37,354
3HDFC Asset Management Company LtdAsset Management₹ 61,198
4HDFC ERGO General Insurance CompanyInsurance
5HDFC Capital Advisors LtdFinancial Services
6HDFC Securities LtdInvestment Banking & Brokerage
7HDB Financial ServicesFinancial Services
8HDFC CredilaFinancial Services

HDFC Bank Ltd

The evolution of HDFC Ltd, originally a premier housing finance institution, took a significant turn with the inception of HDFC Bank in 1994. This was a historic moment when the Reserve Bank of India (RBI) gave its nod, under the liberalisation policy, to set up a bank in the private sector. Today, with its vast network spanning nearly 8,000 branches and over 20,000 ATMs, HDFC Bank stands as a testament to the vision and ambition of the HDFC Group.

Also Read: HDFC Bank Q2 Results

HDFC Life Insurance Company Ltd

Established at the dawn of the new millennium, HDFC Life Insurance has made its mark as one of India’s leading life insurance solution providers. Not just catering to individual needs, the company also offers group insurance solutions. With a diverse portfolio of over 60 products and multiple distribution partnerships, HDFC Life is an embodiment of trust and commitment in the insurance sector.

Also Read: HDFC Life Insurance Q2 Results

HDFC Asset Management Company Ltd

Recognised as one of the most preferred mutual fund managers in India, HDFC AMC has been the go-to choice for countless individuals and institutions. Over its two-decade-long journey, the company has introduced a wide array of investment options, remaining transparent and committed to its mission of ensuring customer trust.

Also Read: HDFC Asset Management Q2 Results

HDFC ERGO General Insurance Company

A joint venture between HDFC and ERGO International AG, HDFC ERGO offers a comprehensive range of general insurance products. With an extensive network of over 200 branches spread across more than 170 cities, this subsidiary guarantees unparalleled customer service.

HDFC Capital Advisors Ltd

HDFC Capital Advisors is a pivotal arm of the HDFC Group, focusing on the financing domain, helping to augment the group’s financial ventures and ensuring robust strategic financial planning.

HDFC Securities Ltd

For those invested in the stock market and securities, HDFC Securities stands as a trusted name. Backed by the legacy of the HDFC Group, this subsidiary offers a seamless trading experience, catering to both novice and seasoned investors.

HDB Financial Services

Addressing diverse financial needs, from personal loans to asset finance, HDB Financial Services plays an indispensable role within the HDFC conglomerate. Its solutions are tailored to meet the unique requirements of the Indian audience.

HDFC Credila

A pioneer in its own right, HDFC Credila, an HDFC Ltd. Company, is India’s first dedicated education loan institution. With a vision of transforming lives and building the nation, HDFC Credila has facilitated numerous students in their pursuit of higher education, both domestically and internationally.

Major Acquisitions or Joint Ventures by HDFC Group

Acquisition of Centurion Bank of Punjab

In a significant move, HDFC Bank acquired Centurion Bank of Punjab, enhancing its operations. This acquisition added a considerable number of branches to HDFC Bank’s existing network, further enhancing its reach and customer base across the country.

Merger with Times Bank

HDFC Bank expanded its operations significantly through the merger with Times Bank. This was a pivotal move as it demonstrated HDFC Bank’s aggressive growth strategy early on, setting the tone for future expansion.

HDFC Ltd. Merger with HDFC Bank

This was, perhaps, one of the most significant events in the history of the HDFC Group. HDFC Limited’s merger with HDFC Bank laid the foundation for creating a financial behemoth. This union positioned HDFC Bank as the fourth-largest bank globally in terms of market capitalisation.

HDFC Life’s Acquisition of Exide Life

In a landmark transaction, HDFC Life completed the first-ever merger and acquisition in the Indian Life Insurance sector with Exide Life. This strategic move strengthened HDFC Life’s position in the market, expanding its product portfolio and increasing its customer base.

Joint Venture with ERGO International AG

HDFC ERGO General Insurance Company Limited was a result of a joint venture between the erstwhile Housing Development Finance Corporation Ltd. (HDFC) and ERGO International AG, part of Munich Re Group. This collaboration allowed HDFC to tap into the vast expertise of ERGO International, offering a comprehensive range of general insurance products to the Indian market.

Products/Brands Under HDFC Group

HDFC Home Loans

At the heart of HDFC’s operations lies its flagship product, the Home Loan. Since its inception, HDFC has been instrumental in helping millions of Indians realise their dream of owning a home. Offering flexible repayment options, competitive interest rates, and dedicated customer support, HDFC Home Loans have become synonymous with trust and reliability. They cater to urban, semi-urban, and rural segments, making homeownership accessible to all.

HDFC Bank Savings and Current Accounts

As one of the pillars of its banking services, HDFC Bank offers a range of savings and current account options tailored to various customer segments. From basic no-frills accounts to premium privilege accounts, the bank ensures that there’s an account type for everyone. These accounts come with a host of benefits, including online banking, mobile banking, and a wide network of ATMs.

HDFC Life Insurance Plans

Addressing the essential need for life coverage, HDFC Life offers comprehensive insurance plans. Be it term insurance, endowment plans, or ULIPs, the company ensures that individuals can secure their family’s future, build wealth, and achieve long-term financial goals. Their insurance products are known for their transparency, flexibility, and ease of claim settlement.

HDFC Mutual Funds

Managed by HDFC Asset Management Company, HDFC Mutual Funds have become a favoured choice for investors looking for wealth growth or regular income. They offer a wide range of schemes from equity, and debt to hybrid funds, ensuring there’s something for every risk appetite. The funds are backed by rigorous research and a track record of consistent performance.

HDFC ERGO Insurance Solutions

Recognising the diverse insurance needs of consumers, HDFC ERGO offers a broad spectrum of general insurance products. Whether it’s motor insurance, travel coverage, or health insurance, the company provides policies that are comprehensive, affordable, and easy to claim. Their innovative solutions, like instant policy issuance or 24×7 customer support, have revolutionised the general insurance space.

HDFC Personal and Business Loans

To cater to the immediate financial requirements of individuals and businesses, HDFC Bank provides a bouquet of personal and business loan solutions. These loans are known for their quick approval process, minimal documentation, and flexible repayment structures. They play a pivotal role in helping individuals and businesses navigate financial emergencies.

HDFC Credit Cards

With a card for every need, HDFC Bank’s range of credit cards cater to the varied requirements of the Indian consumer. Be it travel, shopping, dining or fuel, there’s an HDFC credit card that offers rewards and benefits tailored for it. Their cards are known for their security features, wide acceptability, and the array of offers they bring to the table.

Conclusion

In the Indian financial domain, HDFC Group has undeniably established itself as a pivotal player. Over the years, its journey has been marked by its dedication to innovation, focus on its customers, and consistent growth. The group’s expanding reach indicates its readiness to achieve even greater milestones in the industry. With the merger of HDFC Limited and HDFC Bank in 2023, it positioned itself as the fourth-largest bank globally in terms of market capitalisation. Looking ahead, HDFC Group is strategically positioned to tap into new prospects, ensuring that its services continue to play a key role in India’s financial evolution.

Share this article: 

Read More Blogs

Our Secure Trading Platforms

Level up your stock market experience: Download the Bajaj Broking Mobile App for effortless investing and trading

Bajaj Broking App Download

6.5 Lac+ Users

icon-with-text

4.1 App Rating

icon-with-text

4 Languages

icon-with-text

₹ 3500 Cr MTF Book

icon-with-text